Fostering Trust Within the WorkplaceFostering Trust Within the Workplace

Presenters:Presenters: Paul Silvis, Founder, Restek Paul Silvis, Founder, Restek CorporationCorporation Paal Gisholt, CEO, SmartPak Paal Gisholt, CEO, SmartPak

Moderator:Moderator: Diane Stoneman, Director of Consulting & Diane Stoneman, Director of Consulting & Training, Training, Winning Workplaces Winning Workplaces

© 2008 Winning Workplaces. May not be reproduced or distributedwithout expressed written permission of Winning Workplaces.

Founded in 2001 by co-owners of Fel-Pro, an auto manufacturer nationally recognized as a leader for progressive workplace practices.

Nonprofit committed to helping small/midsize organizations build healthy, innovative and productive work environments.

Triple bottom line: Business, People, Community.

About Winning WorkplacesAbout Winning Workplaces

Consulting and TrainingOnline Clearinghouse

About Winning WorkplacesAbout Winning Workplaces

Workplace Recognition

Project

Top Small Workplaces CompetitionTop Small Workplaces Competition

In collaboration with In collaboration with The Wall Street JournalThe Wall Street Journal

2007 Winners profiled: 2007 Winners profiled: WSJ.com/EntrepreneurWSJ.com/Entrepreneur

2007 TSW Report @ 2007 TSW Report @ WinningWorkplaces.orgWinningWorkplaces.org

2008 Top Small Workplaces underway2008 Top Small Workplaces underway

Wall Street JournalWall Street Journal announces October 13 announces October 13

TSW Conference October 14 & 15TSW Conference October 14 & 15

Alaska Wildland AdventuresBarclay Water ManagementCorporate Ink Cowden Associates Inc.Exactech, Inc.FRCH Design WorldwideGentle Giant Moving Co. Guerra DeBerry Coody HealthwiseNRG Systems, Inc.Phelps County BankPoint B Solutions Group, LLPReflexite CorporationRestek CorporationSummit Aviation

Top Small WorkplacesTop Small Workplaces 20072007 Top Small Workplace WinnersTop Small Workplace Winners

Why trust matters in the workplaceWhy trust matters in the workplace

As a wise CEO recently said: As a wise CEO recently said: "As leaders we should not "As leaders we should not spend our time trusting our employees, we should spend our spend our time trusting our employees, we should spend our time getting our employees to trust us." time getting our employees to trust us."

Without trust, employees:Without trust, employees:- have little interest in being creative - have little interest in being creative - take less risks- take less risks- collaborate less- collaborate less

Leads to complacency, inefficiencies and missed Leads to complacency, inefficiencies and missed opportunities.opportunities.

What the research showsWhat the research shows

The Conference Board Report: “Employee Engagement, A Review of

Current Research and Its Implications” 2006 2003-05: 12 major studies on employee engagement: Gallup, Towers Perrin, Blessing White, Corporate Leadership Council

26 drivers of employee engagement 26 drivers of employee engagement

1) Nature of the job

2) Line of sight between employee and company performance

3) Career growth opportunities

4) Pride about the company

5) Co-workers/team members

6) Employee development

7) Relationship with one's manager

8 agreed upon8 agreed upon

Key driver #8: Key driver #8: Trust and IntegrityTrust and Integrity

Degree to which employee feels mgmt team:

• is concerned about employees’ well-being,

• tells the truth,

• communicates difficult messages well,

• listens to employees then follows through,

• demonstrates company’s goals/values

through personal behavior.

Today’s agendaToday’s agenda

Two leaders’ on developing cultures of Two leaders’ on developing cultures of

trusttrust

Philosophies and practices Philosophies and practices

Impact on business and workforceImpact on business and workforce

Lessons learnedLessons learned

Questions from audienceQuestions from audience

Featured LeadersFeatured Leaders

Paal GisholtPaal GisholtCEOCEOSmartPakSmartPak

Equine & small animal Equine & small animal products products Plymouth, MAPlymouth, MA

230 employees230 employees

Paul Silvis Paul Silvis Founder, Inventor, Coach Founder, Inventor, Coach RestekRestek

Designs and manufactures products for analytical laboratories Bellefonte, PA

Over 300 employee ownersOver 300 employee owners

Paul SilvisFounder, Inventor, Coach

Restek Corporation

Photo

Restek’s businessRestek’s business

Analytical Market :- Gas Chromatography Columns- HPLC Columns- Packed Columns- Instrument Accessories- Reference Standards- Air Monitoring Canisters- SPE

Technology driven division:- CVD Coating service- Passivation, Corrosion, Anticoking, UHV, Decorative

Perception is importantPerception is important

Restek started 23 years ago with a

simple future vision for success

“If employees enjoy coming to work

as much as going home, no one can beat us!”

Restek’s vision of its future will in fact determine how

its future looks!

Employees must trust in the

future!

Trust increases when….Trust increases when….

……a company does what they

say they are going to do!

Respects the leader, mission, and visionRespects the leader, mission, and vision

Trusts leader to do what he says Trusts leader to do what he says

Leader shows he cares (heart)Leader shows he cares (heart)

Leader shares same strong values and not Leader shares same strong values and not afraid to fail (vulnerable)afraid to fail (vulnerable)

Supports and aligns with my goals (servant)Supports and aligns with my goals (servant)

Creates inspiring vision of future (simplifies Creates inspiring vision of future (simplifies the complex)the complex)

Why do people follow leaders?Why do people follow leaders?

1997- “CEO/President” to Head 1997- “CEO/President” to Head Coach!Coach!

The Job of Head Coach

• Put right players in right positions• Provide training, tools, opportunities to become star players • Encourages atmosphere of support and honesty • Help define team's winning strategy

For the sake of creating a championship team which each

member can be proud of!

The Head Coach Works for people!

EEncourage atmosphere of ncourage atmosphere of support and honestysupport and honesty

A good coach makes adjustments to align employee perception with how they want to be perceived.

Say what you mean others to hear. Thank you to the “High S” team!! Coaches learn Wordsmithing!

Company surveys & 360 reviews provide data that allows coach to make adjustments in the way employees perceive the company.

Align personal and corporate Align personal and corporate goalsgoals

……to ensure every employee enjoys coming to work as much as going home.

Combines the success of individuals with corporate success.

Sail boat Sherry is in Vet school! Help employees interview

Help employees write their resume!

How do coaches fix problems?How do coaches fix problems?

1st: Look at Leadership.

2nd: Look at systems, structures, procedures, & training.

Finally, Look at “people”

Austin McGonagall: “Ask, don’t tell.”

White hat – black hat

Create atmosphere ofCreate atmosphere oftrust and honestytrust and honesty

Trust increases when you communicate “how the decision” will be made.

Level I, II, III decision making avoids false participation. - Level I made with input- Level II is consensus

- Level III is delegated

Vertical probing, “question behind the question.”

Accept that decisions will be criticized & second guessed. (Manage the input!)

Controlling “body” reactions when criticized.

Creating a culture of trustCreating a culture of trust

What gets rewarded gets repeated

- Offer incentives/meaningful rewards

- Match rewards to individual preferences

- Personalize rewards ($$ spent not equal to value received!)

- Treat employees like winners (positive vision)

- Plan Spontaneous Recognition!

What gets measured, gets improved

- Establish clear criteria for performance

- Focus on performance

- Communicate expectations

- Show them the score

- Challenge them to exceed expectations!

Creating a culture of trustCreating a culture of trust

“ “If employees trust and respect If employees trust and respect the company they work for and the company they work for and the people they work with…… the people they work with……

there is no limit to what can there is no limit to what can

be accomplished!”be accomplished!”

Trust correlates with successTrust correlates with success

Paal GisholtCEO, SmartPak

Photo

Words of wisdomWords of wisdom

“I'm not upset that you lied to me, I'm upset that from now on I can't believe you.”

Frederick Nietzsche

Building trust – so many conceptsBuilding trust – so many concepts

“Walking Your Talk”Mentoring ProgramsOpen Door Policy

En

gag

emen

t S

cori

ng

Financial Transparency

Enlightened Comp Programs

360°

Rev

iew

s

TOLERATING FAILURE

• Missed/Inaccurate Doses• Inventory Hassles• High Labor Costs• Potency Losses

x 30 =

Chaos in the feed roomChaos in the feed room

SmartPak ConfidentialSmartPak Confidential

SmartPaks tame the chaosSmartPaks tame the chaosBefore

Before

After

After

Unapologetically “hard core”Unapologetically “hard core”

0

10

20

30

40

50

60

2002 2004 2006 2008E

We have grown at 10X industry rate

We push ourselves hard

We like to win

WWe ARE intensee ARE intense

But we have REJECTED controls

Key Message Today: “Controls are Anathema to Trust”

The “well-controlled” workplace – Signing authority– Strict budgets and “high accountability”– Supervisor approval required for customer refunds– Requiring permission to take a business trip

WWe ARE intensee ARE intense

But we have REJECTED controls

Business schools teach controls Investors require controls Auditors validate adequacy of controls . . .

but….. good employees resent the lack of trust associated with controls!

The Alternative: A trusting cultureThe Alternative: A trusting culture

Tips: – Avoid over-reliance on job descriptions,

controls, etc.– Hire great people and build a great culture

Result: - True magic on behalf of customers!

– Culture doesn’t just happen – hard work

Stages of cultureStages of culture

0

10

20

30

40

50

60

2002 2004 2006 2008E

The Ping Pong Table: “Witnessing Actions”

Monthly Beer Blasts: “Hearing Stories”

Quarterly Updates:“Celebrating Values”

Culture begins with shared valuesCulture begins with shared values

We formalized culture in order to preserve it

Participative process to define core values – though mostly vice presidents

From 25 values initially proposed – down to eight that we were willing “To Live”

SmartPak’s cultureSmartPak’s culture

SpeedManiacal Customer ServiceAnalysisRisk-takingTeamworkExecutionRespect

Risk-taking: the real dealRisk-taking: the real deal

People talk about tolerance for risk

Actions speak louder than words – esp. when projects fail

Celebrate “Guts” to take a stand or challenge conventional wisdom. As we become more senior, we forget how hard it is.

Reinforce values continuallyReinforce values continually

SMARTER awards given each quarter

Nominations throughout the company

Catching someone demonstrating a core value – beyond just doing their job

Making of great stories: The Tack Trunk Fiasco

Avoid controls for speed and trustAvoid controls for speed and trust

Let the little things slide

Nothing’s fatal – except paralysis and lack of engagement

Don’t Be a Bottleneck – coach after the fact for learning, Not Punishment

Manage to the culture; not the control

Failure to “Get the Culture” may indicate lack of fit – main reason for involuntary turnover

Questions?Questions?

www.restek.cowww.restek.comm

www.smartpak.comwww.smartpak.com

Upcoming 2008 WebinarsUpcoming 2008 Webinars

Sept 25 Maintaining Community in a Virtual WorkplaceSept 25 Maintaining Community in a Virtual Workplace Michael Lacey, CEO/Pres., Michael Lacey, CEO/Pres., DigineerDigineer, Plymouth, MN, Plymouth, MN Timothy P. Keenan, President & Founder, Timothy P. Keenan, President & Founder, HPTiHPTi, Reston, , Reston,

VAVA

Oct 28 Open Book Management - NOT Just About Financial Oct 28 Open Book Management - NOT Just About Financial Transparency Transparency Rich Armstrong, President, Rich Armstrong, President, The Great Game of The Great Game of BusinessBusiness

Nov 10 Exemplary Practices of 2008 Top Small Workplace Nov 10 Exemplary Practices of 2008 Top Small Workplace WinnersWinners

Diane Stoneman, Director of Consulting and Training, &Diane Stoneman, Director of Consulting and Training, & Mary Corbitt Clark, Executive Director, Mary Corbitt Clark, Executive Director, Winning WorkplacesWinning Workplaces

Dec 12 Maintaining a Stable Workplace in an Unstable EconomyDec 12 Maintaining a Stable Workplace in an Unstable Economy Bill Brett, CEO, Bill Brett, CEO, Barclay Water ManagementBarclay Water Management

Save the DateSave the Date

• Colleen Barrett, President of Southwest Airlines Colleen Barrett, President of Southwest Airlines • Alan Murray, Executive Editor, The Wall Street Journal OnlineAlan Murray, Executive Editor, The Wall Street Journal Online• Trish Karter, CEO/Cofounder, Dancing Deer Baking CompanyTrish Karter, CEO/Cofounder, Dancing Deer Baking Company• Over 20 other inspiring business leaders speaking on critical Over 20 other inspiring business leaders speaking on critical issues faced by small businessissues faced by small business

2008 Top Small Workplaces Conference2008 Top Small Workplaces ConferenceOctober 14-15, 2008 • Mid-America Club • ChicagoOctober 14-15, 2008 • Mid-America Club • Chicago

www.winningworkplaces.org/topsmallbiz/2008conferencewww.winningworkplaces.org/topsmallbiz/2008conference

Thank You!Thank You!

www.winningworkplaces.orgwww.winningworkplaces.org