The stars have aligned. Peter B. Gustavson, a brilliant entrepreneur. UVic Business, a leader in business education. Together, a stellar combination. The University <strong>of</strong> Victoria is proud to announce the new name <strong>of</strong> its business school, the Peter B. Gustavson School <strong>of</strong> Business. We take great pride in our namesake’s integrity, global perspective, service focus and entrepreneurship. Thanks to his support we will reach new levels <strong>of</strong> excellence in Canada and beyond. Watch us rise. Our stars have aligned. www.gustavson.uvic.ca 4 Sounding <strong>Board</strong>/November-December 2010 The <strong>Vancouver</strong> <strong>Board</strong> <strong>of</strong> <strong>Trade</strong>/Spirit <strong>of</strong> Enterprise ®
Management practices that waste time and money management news recent brain science or neuroscience, and but it’s unlikely to continue to motivate. very few business programs in universities Bonuses are viewed as entitlements, even teach it. if performance is less than satisfactory. He says another reason why organizations What to do about it: Pay for performance are fundamentally flawed from a behavioural or revenue sharing that must be earned perspective is that they were designed by each year. people – those with financial expertise – who • You did a good job, but… (good newsbad have only one purpose in mind, to make news feedback). What’s wrong with money. He says that “how employees are it: “Yes, but,” is not a motivator, but a paid, appraised, rewarded, and recognized punisher and seen by employees as management have financial implications,” but when designed “nagging.” What to do about it: without an understanding <strong>of</strong> human praise and criticism should come in two behaviour, the results can be destructive. For separate conversations. example, there is a mountain <strong>of</strong> research to • The Sandwich (criticism sandwiched show that employees are not primarily motivated between two positive statements). What’s by financial rewards over the long term, wrong with it: People naturally place more yet we continue to use that as a management focus on negative messages than positive, motivational strategy. so the focus on the positive is lost. What Daniels identifies the following 13 managerial to do about it: If management needs to strategies that not only don’t work, confront an employee about an issue, do but are destructive to organizations and the so in a straightforward manner, with no people in them: sugar-coating. • Employee <strong>of</strong> the month (and most other • Overvaluing smart, talented people forms <strong>of</strong> recognition and reward). What’s (buying their brains rather than their wrong with it: Focuses recognition on behaviour). What’s wrong with it: Management one employee when most work is a team focuses on resumes and IQ, not effort. What to do about it: Acknowledge performance. What to do about it: Provide achievement for everyone the moment it growth opportunities for all employees happens. and give them opportunities to shine. • Stretch goals. What’s wrong with it: • The budget process. What’s wrong with Employees end up overwhelmed and it: Tedious, time-consuming divvying up frustrated if they fail to reach aggressive <strong>of</strong> resources creates an expectation for goals. What to do about it: Set achievable everyone to want more. What to do about short-term goals and chart employee it: Budget according to what each part <strong>of</strong> progress month by month. the organization can prove they need to • Performance appraisal. What’s wrong with it: It’s hated by both managers and employees, it’s done once a year and then appraisal is ignored for the rest <strong>of</strong> the year, it’s not motivational. What to do about it: Give immediate management feedback to employees for success or failure. Engaged Corporate Citizenship Award • Ranking employees. What’s wrong with it: Even if the gap between employees is Nominations are being sought for the 2011 Engaged small, some end up at the top and others Call for Corporate Citizenship Award. at the bottom. The ones at the bottom feel like failures. What to do about it: Set Nominations The late Dr. Donald Rix, CM, OBC, founded the Rix performance targets for all employees. Center for Corporate Citizenship and Engaged Leadership • Rewarding things a dead man can do (rewarding negatives). What’s wrong with it: If you reward employees for zero defects, at The <strong>Vancouver</strong> <strong>Board</strong> <strong>of</strong> <strong>Trade</strong> during his term as Chairman in 2008. the sure way to meet that target is to try nothing that has a chance <strong>of</strong> failing or falling short. What to do about it: reward Its purpose is to promote and facilitate the engagement <strong>of</strong> businesses and individuals in activities that add value to the broader community, as well as business. • every success, no matter how small. Salary and hourly pay (merit pay, automatic bonuses). What’s wrong with it: The first Engaged Corporate Citizenship Award was given to the <strong>Vancouver</strong> Airport Authority (YVR) in 2009. Once a raise is given, it is permanent, An Engaged Corporate Citizen is an enterprise which demonstrates in policy and practice the highest standards <strong>of</strong> stewardship towards the long-term well-being <strong>of</strong> customers, employees, owners, business partners, the environment and the broader community. Demonstration <strong>of</strong> remarkable acts <strong>of</strong> corporate citizenship will be welcomed. Further details on the nomination process and selection criteria can be found at www.therixcenter.com The Dean <strong>of</strong> the Sauder School <strong>of</strong> Business, University <strong>of</strong> British Columbia, will manage the selection process. Nominations should be submitted by January 14, 2011 to: Secretary, Rix Center for Corporate Citizenship & Engaged Leadership The <strong>Vancouver</strong> <strong>Board</strong> <strong>of</strong> <strong>Trade</strong> Suite 400, 999 Canada Place <strong>Vancouver</strong> B.C. V6C 3E1 By Ray B. Williams At the best <strong>of</strong> times, management mistakes can cost an organization valuable time and money. During difficult economic times, the results can be disastrous. In my Psychology Today article, Management Rewired: What Brain Science Can Tell Us About Leadership, I said: “Research on how the human brain can affect behaviours – called neuroscience, or the popular term, brain science – has yet to be fully appreciated by leaders <strong>of</strong> organizations. That knowledge could have a significant impact on how leaders are trained and what they do. In the past few decades, scientists have gained new and more accurate scientific views <strong>of</strong> human behaviour, studying the human brain. Organizational change that takes into account the physiological nature <strong>of</strong> the brain and ways that predisposes people to resist or co-operate with leaders can be extremely useful for leaders.” It appears as though this management lack <strong>of</strong> knowledge <strong>of</strong> brain functioning and human performance may account for many dysfunctional management practices. Aubrey C. Daniels, one <strong>of</strong> the world’s foremost authorities on management and human performance, outlines management practices that are destructive to organizations during boom or bust times, in his outstanding book, Oops! 13 Management Practices That Waste Time and Money (and what to do instead). Daniels points out that few managers look for behavioural data to affect employee performance because most managers know very little about the science <strong>of</strong> behaviour and Darcy Rezac’s Positive Networking Tip <strong>of</strong> the Month Seriously, we have time. It’s no surprise, one <strong>of</strong> biggest challenges is finding the time to network, especially during the busy holiday season. However, we may have more time than we think. Clay Shirky in Cognitive Surplus says, “Americans watch roughly two hundred billion hours <strong>of</strong> TV every year. We spend roughly a hundred million hours every weekend just watching commercials.” Personally, we are guilty as charged. When the three <strong>of</strong> us think about the years we spent watching 21 seasons <strong>of</strong> Survivor, The Apprentice, Seinfeld (and all the reruns), that’s a lot <strong>of</strong> hours! While it seems that everyone says, “I don’t watch a lot <strong>of</strong> television,” why not take an inventory <strong>of</strong> how many hours you really watch and you may be surprised. Perhaps, like us, you need to say “so long” to Jeff and The Donald. Can you use any <strong>of</strong> those surplus hours to network and socialize more? Darcy Rezac is the author <strong>of</strong> WORK THE POND! How to Use the Power <strong>of</strong> Positive Networking to Leap Forward in Work and Life. Prentice Hall 2005. get results. • Promoting people no one likes. What’s wrong with it: Employees perform out <strong>of</strong> fear rather than commitment and loyalty. What to do about it: Promote people who are liked and have superior interpersonal and emotional intelligence abilities. • Downsizing. What’s wrong with it: Many things, including the stress placed on those employees that remain and the costs <strong>of</strong> new hires after the recovery. What to do about it: Find more creative ways <strong>of</strong> costs savings, done by many best practice companies. • Mergers, acquisitions and other forms <strong>of</strong> reorganizing. What’s wrong with it: Decisions are made mostly on financial terms, with little focus on integrating corporate cultures and declining performance. What to do about it: Get teams <strong>of</strong> people together to manage the integration over time, rather than by management edict. Daniels presents some very controversial remedies for what ails our current organizations, based on some very sound brain science and human behaviour research that should draw the attention <strong>of</strong> every leader. This article was first published in the Financial Post, October 4, 2009. Ray Williams is co-founder, Success IQ University, and president, Ray Williams Associates in Phoenix and <strong>Vancouver</strong>, providing leadership and executive coaching. He publishes in the National Post, Psychology Today and Fast Company. See www.successiqu.com and www. raywilliamsassociates.com.
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