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newsletter - july/august 2007

July/Aug. 2007 
The developmental digest for emerging leader/managers devoted to growth and excellence
CONTENTS:
Section 1 - Topical Topics
  - Leadership Opportunities . . .
  - Timely Insights

Section 2 - Talk Back
  - Dear Coach
  - Commentary
  - A Point of View

Section 3 - On the Horizon
  - Opportunities and Challenges
  - Reach Out

Section 4 - Secure Site


 Section 1  - Topical Topics

Leadership Opportunities . . .

Over past issues we’ve critically examined the roles, the credentials and the strategies that are peculiar to the leadership role. Now it’s time to explore some of the opportunities that people in leadership roles possess that could make profound differences in the lives of those they lead.

This means we’re comparing and contrasting how a leadership perspective can add unique and substantial value to some ordinary and familiar undertakings. This month we’re going to extend deeper into the role of assignment – putting the right person into the right position at the right time.

What do you mean “right” . . .
Bill was the boss from hell! Less than six months after his appointment we were all wishing he’d get hit by a bus or even something larger.

He was a lawyer by profession but had elected to take the operations management career track – right to the executive suite. There was clearly only one thing that mattered to him and that was that he had to be successful - at our expense if necessary. He was a ‘driver’, hard, relentless and unforgiving. He knew one way to results, his way! We were simply the means to his end. We were very close to open rebellion but no one in authority seemed to take us seriously.

I remember well one significant occasion when my mentor, who served on the Executive team, asked me to describe precisely what issues we were all having with Bill. “Well. ...“, I was trying desperately to tell the absolute truth but at the same time impress my superior with the miserable conditions in which we were all working, “he’s clearly brilliant, really knowledgeable about the organization, the market and our business, and he seems to have the best interests of the Company at heart, but we’re all having a terrible time with him. I’m sure,” I continued somewhat lamely, “that he’s really trying to keep us in the picture and to get the results that the top floor is demanding from him, but he just seems to be rubbing us the wrong way. We just don’t seem to count for anything in his value system.”

“I’m not sure I understand where your problem lies,” remarked my mentor. “You say that he’s competent and that he’s looking out for the interests of the Company, but that you just can’t stand him?” “Well, yes, I guess that’s him in a nutshell,” I responded, “it’s just that he’s coming across as excessively ambitious and he seems to think that we’re just a stepping stone in his career – we’re all feeling as though we’re being used!”

Fortunately for us, an international opportunity came up two months later and Bill jumped at it. We were so relieved it was palpable. We waited with baited breath to see who would be appointed as our next supervisor. To our immense surprise it was the most unlikely person we could have imagined. If the previous boss had been totally fixated on driving, exploiting and frustrating us beyond measure, our new boss was the antithesis.

To start with, Melissa was so relaxed and laid back on corporate issues we began to wonder how she ever got executive approval for her appointment. Instead of zeroing in on organizational goals and demanding results she simply smiled and asked us how we felt! As you can imagine the tongues started wagging and the cynicism went off the scale. We began taking bets on how long she would survive in the role and who would replace her – and all this took place during her first week.

Then she surprised the ‘hell’ out of us! She sat down with each of us, one at a time, for a relaxed yet pivotal discussion. Her first question knocked most of us sideways. “What’s your vision for this department?” she asked. Well, we were incredulous at the beginning but then the juices began to flow. We poured out our opinions, then our beliefs, our values and emotions and then our hearts as she sat patiently and listened. Not only did she listen, she started us thinking. I personally went back to her at least twice during that week to clarify and extend my contribution.

The next week she called us all together and quietly explained the mandate she’d been given for the department, pointing out how each individual contribution she’d gathered in the previous week was so critically important to its fulfillment. We were blown away at first, then increasingly committed and enthused over the role that each of us would play, stumbling over our selves to extend our efforts and even to support one another.

Later, we all agreed that she was nowhere as brilliant as Bill but she was so much wiser; her goals were not nearly as focused but so much more cohesive; her methods much less efficient yet so much more effective – and as for us, we couldn’t possibly have been happier or more engaged and fulfilled.

The difference was . . .
The executive, in their collective wisdom, had seen the root cause of our disaffection and had chosen precisely the right person to lead us. Results were still important and standards could not be relaxed, but we were mustangs, needing to be corralled, understood and then harnessed, not ridden hard, whipped and broken. We needed a leader who could help us to believe – in ourselves more so than in the corporate vision; help us to contribute from our hearts rather than from our heads; help us to realize that our personal success was paralleled to that of the organization, not in competition with it.

Melissa stayed with us for less than a year, and then moved on to another high performance group that was chafing under harsh rules. We were left without a supervisor for another year – we didn’t need one because we were now self-governing, every one of us leading the others in full measure.

A leader is one who focuses the needs of others, facilitating a sustainable new reality – Melissa was a leader, and more important, she was exactly the right leader for our group at that moment in time. She took the time to understand what we as individuals and as a group really wanted. She focused on the passions and dreams that every one of us possessed whether we knew it or not. Then she helped us to see how we could ‘hitch our wagon’ to the company star, and achieve our most powerful dreams while assisting one another – because we were all different, each having a unique contribution.

She understood us - perhaps intuitively but more likely through patient listening. She related to us at the values level, not though the medium of ideas alone – we each felt important, an essential component of the departmental team. She was our first experience of the so-called ‘servant leader’, one who creates synergistic outcomes from the untamed energies and passions of her people.

What was needed . . .
My mentor helped me to determine and appreciate the process used by the executive. They’d started with the solution they wanted, not with the problem we had wanted them to resolve. Their initial step was to find consensus on the overall contributions they needed from our department and with these clearly and firmly in mind, they’d then reasoned the contributions that a departmental leader would have to create in order to lead us effectively.

We were all high achievers, a bunch of ‘specialists’ jealous of our cognitive competencies and willing to play the game only when and if we were in full agreement – a rare event. We had to be brought to a radically different perspective, especially since that prevailing was largely negative. It also had to be one that centered on collaborative service within the framework of corporate intent. We were like a bunch of musical virtuosi who were called upon to produce a symphony.

Melissa’s primary task was to help each of us to perfect our personal capabilities while staying in perfect harmony with all the other players. This would only be possible if she focused on the big picture while we all focused on our individual performance and contributions. She understood this very well and had the temperament to make if a reality. The executive had chosen wisely indeed.

The leader’s opportunity . . .
By looking at desired collective contribution first, and at available competencies, strengths and personal styles subsequently, the true leader deals with things the way they need to be (outcomes) and at the same time with things the way they really are (current realities) so as to be able to leverage one against the other. The mistake made by so many in their impatience is to try to blend the two different realities too quickly - a forced marriage of incompatibilities without the benefit of courtship.

When this is attempted there’s only the desire and need to formulate an outcome vision in the mind of the leader and then to attempt to impose it upon others. This is rarely, if ever, successful. The vision does need to have its genesis in the leader’s mind but then it must be applied to stimulate parallel visions in the minds of all those who would follow – perhaps as many versions as there are persons.
 
Until each significant follower has developed and refined his/her own version of the vision (s)he is not committed, not engaged. When this transfer of ownership has taken place there’s a multiplicity of visions, all bundled together by common intent, that are stronger by far than any single vision could ever be. The next step in any leadership intervention – securing ‘buy-in’ - is then not only possible but inevitable, and results (score on the board) will follow as surely as day follows night.

Any leader’s over-arching responsibility is to create, develop and sustain other leaders in every possible scenario. Thus assigning the right person to take the lead, rather than the most qualified, the most available / convenient or the most needful, is the essential first move. It all begins with the desired outcomes and then focuses upon the requisite competencies, strengths and styles of potential candidates – not the other way around. To appoint or assign the right leader means that the true leader must first understand the needs of the group to be led, both as individuals as well as collectively, and this takes time and effort.

Not to do so however, invites disaster. All too often though, we make assignment decisions on the basis of other, incompatible factors or, worse, expediently. Preparation is essential, wide-based input is required, patience is the watchword. Leadership assignments are among the most critical decisions made in any organization, and it makes no sense to make them without full diligence and prudence.

If you want to identify real leadership capabilities in others, this is a telling sign. Those who will be truly effective are able to identify, develop and assign others to leadership roles with impeccable results. Those who have simply inherited power – the ‘faux’ leaders - will do much less well. Rather than rely on self promoting claims, just enquire about the person’s preferred way of selecting and assigning others to leadership positions. Those who begin with focusing the desires of followers, matching them to common goals and then, and only then, concerning themselves with qualifications, experience and credentials, are true leaders.

This is your path.



I'd welcome your questions, comments and suggestions. We can all learn through dialogue and your experiences will undoubtedly gain more value when shared. Please contact me at david@andros.org.



A Note to our Readers . . .

Previous series of articles on the topics of

  • Tomorrow's Leaders - a model for SME organizations
  • The Leadership Crucible - the "making" of leaders
  • Leadership Characteristics - a comprehensive catalogue of leader qualities
  • Succession Planning - the strategic argument, principles and strategies, and
  • Managing Change - every person's guide to painless processes
have been summarized as discussion guides for those who lead and manage through mentoring and coaching. If you would like to secure a copy for your own use, please contact us.

It is a pleasure to share ideas with you and we'd welcome your questions, suggestions and comments. They'll assist us to refine and expand the essential value of these initiatives.

Thanks in anticipation for your participation.

^ ^
  
Timely Insights . . .
  • 15 Things I Believe by Bob Sutton
    1. Sometimes the best management is no management at all -- first do no harm!
    2. Indifference is as important as passion.
    3. In organizational life, you can have influence over others or you can have freedom from others, but you can't have both at the same time.
    4. Saying smart things and giving smart answers are important. Learning to listen to others and to ask smart questions is more important.
    5. Learn how to fight as if you are right and listen as if you are wrong: It helps you develop strong opinions that are weakly held.
    6. You get what you expect from people. This is especially true when it comes to selfish behavior; unvarnished self-interest is a learned social norm, not an unwavering feature of human behavior.
    7. Getting a little power can turn you into an insensitive self-centered jerk.
    8. Avoid pompous jerks whenever possible. They not only can make you feel bad about yourself, chances are that you will eventually start acting like them.
    9. The best test of a person's character is how he or she treats those with less power.
    10. The best single question for testing an organization’s character is: What happens when people make mistakes?
    11. The best people and organizations have the attitude of wisdom: The courage to act on what they know right now and the humility to change course when they find better evidence.
    12. The quest for management magic and breakthrough ideas is overrated; being a master of the obvious is underrated.
    13. Err on the side of optimism and positive energy in all things.
    14. It is good to ask yourself, do I have enough? Do you really need more money, power, prestige, or stuff?
    15. Jim Maloney is right: Work is an overrated activity

    If you'd like to know more, take a moment to visit the website.



  • Networking Tips from the Mind Gym

    Whether you’re rubbing shoulders in Edinburgh or sipping champagne at Cowes Week, you never know who you’re next to. Be it a new boss or new client, this is a great time for networking. Try these tips:
    Stand out from the crowd - People remember the first and last things that they hear, so work up an impressive introductory story and hit the ground running. Repeat your key message before you say goodbye.
    Do your homework - Few of us can resist the allure of an appreciative fan. Aim straight for the jugular: “You have a reputation for caring about what customers think…”
    Stand in their shoes - Why would they want to speak to you? What do you have to offer that’s useful, interesting or intriguing to them? They may not have much time so be clear about what you want.
    Ask questions - People are generally more engaged when they’re talking and being listened to, rather than the other way around. 70:30 in their favour is a good rule of chat.
    Leave on a high - Don’t let the conversation get staid. Make a final point and tell them how you’ll follow up: “It was great to put a face to a name Clary. I’ll be in touch tomorrow about that conference.” Then make sure you do.



  • ^ ^
     
      Section 2  - Talk Back

    Coach's Corner . . .
    A selection of frequently-asked questions.

    Dear Coach:
    I lead a small team of highly effective people. Recently disagreements arose between one of my team members and a person in another division of the company. There were some unfortunate events and related conversations which led to serious hostilities between the two. The other employee left the company a few weeks ago (due to reasons unrelated to this issue). Since then my guy seems to be having trouble getting along with others in that division because of his previous experience. What can I do to help him let go and move on? And should I bother? After all, this other division hasn’t made life easy for our team.

    Response:

    Interesting questions!  Questions of perspective, perception and strategy.  All of which seem to focus in one way or another on the question of ‘should I bother take action’?  

    Should you bother to do anything ?

    Absolutely!  If this continues, who suffers?  You all do; or will.  You may be different divisions, but you are all one company.  What you suffer on the inside, the customer suffers on the outside.  And that is bad news for everyone, even those not involved in this fracas.

    As Team Leader you are in the best position to take the initiative – much as you have by initiating this dialogue - and then model the desired perspectives and behaviours.

    As a first step, I suggest you ask yourself, “What stories am I telling myself about this situation?  And are they in fact true?”

    From your email I am not sure I fully understand the interpersonal / group dynamics of the current situation - the ‘who is (apparently) still doing what to whom’ piece;  why your guy is having trouble getting along with the others, even though his primary antagonist has left.   Perhaps you also find yourself in this quandary?

    If you are in any doubt whatsoever about the veracity of ‘the facts’ you are telling yourself, consider informally engaging each of the players from the other division in a dialogue to uncover their current perspectives – as they relate to their objectives and desired outcomes; constraints, obstacles and setbacks; and vision of a successful collaboration.  At that point at least you will have the whole story - all the facts, so to speak!  And perhaps the situation will look quite different.

    Might this fresh take on the situation help you let go? Or better still, is this a case where forgiveness, a personal strength, might be applied as a deliberate strategy? 

    Forgiveness is not about condoning a deed or behaviour.  Nor is it about losing face / place.  And it has little to do with forgetting.  It’s about becoming unstuck – for one’s own health and wellbeing, for one’s own sanity, one’s own peace of mind.

    After all, what’s being achieved right now, and what is to be gained in the future, by holding this position, this current state of apartness, this state of ‘right’ness?

    And what about your guy, might this also be a workable strategy for him?

    Here’s how you might approach the matter:  In a safe place, and safe manner, suggest to him that you sense a struggle, and ask his permission to help with it. 

    Let him tell you what is bothering him.  Listen carefully to what the issues might be. Ask what he believes underlies the actions of the person /people from the other division.  Ask if he knows this for a fact.  Or whether these are the stories he is telling himself.  (You may even want to share an experience of your own here.)

    Then ask what about the situation (past and current) can be changed, what can’t.... and what actions he could take to resolve the issue.

    Then ask your guy if he has considered forgiveness as a choice / a deliberate strategy.

    You may find yourself needing to leave sufficient space for the individual to think this through.  He may or may not share his thinking with you.  And that’s ok.  Give him space; give him time.   And you too can use this time to consider the same issues, openly role modeling the process if necessary.

    Then ask what support you can provide.  

    You may also want to suggest that you could bring the group together and facilitate a solutions-focused dialogue - gaining agreement on what outcomes are being sought, and how to arrive at them successfully – both in terms of standards and process (actions / behaviours).

    Perhaps shared goals will build the common ground.  Perhaps interpersonal ground-rules will have a place in ongoing activities.  Perhaps letting go of the past is also a common objective – with both personal and group benefits.

    Forgiveness, as Daniel Goleman puts it, is about ‘finding a way to free oneself from the claws of obsession about the hurt’.   With all the ‘hurt’ that happens in the workplace – real and perceived – and the price we pay for it (as individuals and organizations) perhaps we should consider forgiveness more often as a deliberate strategy. 

    Give it a try – for your sake, if no one else’s.

    Good luck!


    Response prepared by Amanda Horne and Amanda Levy of The Positive Workplace Alliance. Consultants and Coaches in positive workplace practices, Amanda Horne works out of Australia, and Amanda Levy is based in Canada.



    ^ ^
     
      
    Commentary . . .
    High Impact Feedback . . .

    One of the most critical responsibilities for any leader or manager is that of providing effective feedback to staff. So important is this task that it should be a standard feature in selection criteria and in performance evaluation for all leaders and managers.

    The sad truth is that not only have the majority of leaders and managers failed to develop  and apply this essential competence, most have not even read a book, reflected upon an article or given any thought to the process in any significant way. Such persons will surely fail – sooner or later.

    May I offer six points to ponder? It isn’t ‘rocket science’, mostly common sense – but then, as my sainted Scottish aunt shrewdly observed, “The only problem wi’ common sense is that it’s no’ verra common!”

    Focus on Contribution . . .
       within the context of established corporate intentions (the Strategic Plan) and/or recognized corporate culture (the way we do things around here!). Every person has the right to know whether or not (s)he is making a difference, adding value, advancing the cause. This is the primary focus of all valid feedback – where value is being added. It’s the root of the employment contract / agreement (which has to be two-sided) and the basis for any related judgments and consequences.

    “This organization is dedicated to gaining and sustaining a larger market share and your contributions have assisted this in the following ways . . .” “Here at Acme Widget Inc, we believe strongly that the customers interests must be at the heart of every effort; your specific initiatives and suggestions have helped us substantially by . . .”

    If the feedback is negative, do not expect that contributions will change for the better – why would they? Instead, begin by exploring the consequences of problematic behaviors and then seeking alternatives, perhaps through guided discussion, that will generate more appropriate contributions. “Let’s see what have been the outcomes of your recent decision . . . so what could be a preferred strategy for handling issues of this type?”

    Uncover the Vision within . . .
       thus engaging the power of intrinsic (internally generated) motivation. It has been proven beyond a shadow of a doubt that it’s impossible to transfer your precise personal vision into the head of another person, so why would we try? Clearly what we need to do is to stimulate the creation of a new and individualistic vision in the mind of the other person. Hopefully this is one that’s parallel, or at least compatible with our own.

    “How do you think others will relate to you when you take the time to demonstrate that you really care about their feelings?” “How would your career progression options be affected by meeting the set standards for on time delivery?” We are driven by what we feel, more so than by what we understand. Emotions are powerful influencers on present and future behavioural choices, so the challenge is to encourage the creation of some constructively focused emotions.

    When a person experiences difficulties in formulating a clear and compelling vision, or when you doubt the sincerity of a stated vision, use consequences again to refine or to reinforce. “Tell me what you believe will happen whenever you actually deliver on your commitment to . . .” The ‘trick’ here is to engage the imagination – that persuasive artist that is able to draw out compelling beliefs.

    Hit the Bullseye . . .
       by starting with a crystal clear image of the outcome you are seeking. What kills most feedback sessions is a lack of clarity. Many walk away from a feedback session without any real idea of what was actually discussed let alone what was finally agreed. The reason of course is that feedback providers walk on eggshells so that feelings are not injured, sacrificing the intent in the process. Begin by stating clearly where you mean to end.
    “I would like to encourage you to change the way that you are responding to client requests so that your longer-term relationships are enhanced.” “We need to find additional, constructive methods to include other departments in our planning in order to minimize ongoing frictions You can then define the central issue by means of facts which define the gap between expectations and experience in a non-threatening way.

    When the feedback is largely complementary and reinforcing, the need for clarity is no less important. There’s no point in reinforcing behaviors which cannot be properly identified and replicated. “You introduced an innovative practice last month which has stimulated creative and innovative ideas from other staff members. This has resulted in this department surpassing the expectations of our clients

    Encourage Synergies . . .
      by harnessing the energies of the recipient. This means that the recipient has to feel more like a partner in the process than an audience. The key to this is in the use of open invitations/questions. Closed questions, those that can be answered by a ‘yes’ or ‘no’ are a characteristic of a crude interrogation, but open ended invitations/questions encourage the sharing of information/intelligence.

    “. . . so that’s how it appears to me but how do you see it?” “Those are the facts as I understand them at present, however you’ll likely have a different perspective which perhaps you would share?” These present two simple and open opportunities to begin a valuable dialogue. When the topic is clear and the desired outcome has been specified there’s little danger that the discussion will wander too far from the intended path. If it does, bring it back by restating the objective.

    That useful device – the consequence – will again help us here. This time it can be used to steer the recipient into areas for consideration that have not yet occurred to her/him. ”What do you think could happen if we were to consider a pilot study ahead of the main event?” “Is there any merit, do you think, in trying a more democratic approach?”

    Make it Easy . . .
       by keeping the outcome in plain view. A periodic restatement of the feedback objective will contribute to focus and clarity while making the relevance of current topics obvious. Since the purpose of any communication is to make something happen and the ‘meaning’ of any communication is in the response it elicits, using a simple game plan – who does what by when – will promote understanding and commitment.

    So what we’ve agreed is that you will contact the supplier for a review of contract terms and report back to me no later than . . .” “ We’re agreed then that I will send the draft document to you today and you’ll return your comments and suggestion no later than . . .”

    My experiences strongly suggest that feedback works best if delivered in relatively short, highly focused and action oriented packages. Saving several issues for a ‘economy, super-size session’ rarely saves time, effort or enhances mutual understanding. If each of the sessions is positively and constructively delivered with clear outcomes and benefits, there’ll be little or no risk of overwhelm.

    Follow-through as you Promised . . .
       by logging each of your commitments for a specific action on a particular day in the near future. Even the suggestion of a ‘touch-base’ will be construed as a commitment by the recipient where the issue is perceived to be important – and why wouldn’t it be if you’ve just made it an issue by dedicating feedback time and effort?

    I’ve made a note to check back with you on Friday morning next week to review progress. Shall we put that in our books right now?” “I shall be expecting your call with an update by 5pm on the 15th. I’ll make a note to that effect in my diary!”

    Remember the 80% decay curve.Within twenty-four hours, eighty percent of what was discussed will have evaporated, especially if there are significant events in the intervening period. Leave nothing to chance or two things are certain to occur – your best intentions will not be realized and your credibility will take a solid hit to the midriff!

    As I said at the outset, this isn’t a difficult undertaking but there are few others where you are so readily exposed as a leader / manager. Why take unnecessary risks when a small amount of common sense can save the day and your reputation to boot?

    Think about it!



    ^ ^
     
      
    A Point of View . . .
    This section is a Guest Column.
    Those with different and interesting viewpoints are invited to state a case on a related topic. Articles are most welcome.

    What about the rest of me . . .?

    Did you ever hear the expression, “Check your brain at the door”? If it wasn’t so true of most organizations it might be amusing!

    I like to think of myself as a reasonably intelligent guy who can ‘self-manage’ much of the time. The fact that my boss doesn’t micro-manage me the way she does some other people, makes me think that she’d even agree with me – at least some of the time.

    Also I’ve been doing my job for a few years now and I know pretty well what I’m doing. I know what happens if I don’t do my job well enough for those upstream and downstream of my position. The consequences are serious enough to keep me on my toes. I’m serious about what I do.

    So, what’s my beef? My boss has never said to me, “Check your brain at the door’ when I come to work and probably she wouldn’t think of doing it. But she might as well! I can’t remember when she’s ever asked me for my ideas and suggestions about how to do my job better. She’s never asked me for ideas about how to improve the department or how we could all work better together!

    From time to time, I’ve offered suggestions. She just looks at me, says “Thanks” and then nothing happens. I feel like the proverbial spare ‘whatsit’ at a wedding. It’s absolutely not a nice feeling.

    Now I know I can do more by way of a contribution and I’d really like to. I’ve seriously considered moving to another department or even a different company so I asked around and guess what? It’s exactly the same all over. My boss isn’t an exception. She’s just the same as most bosses.

    When are the people who train managers going to wake up and smell the coffee? Workers who are taken seriously, treated as a whole package – heads and hearts, as well as hands – will put their backs into their jobs and really get involved. Everyone would probably feel so much better about things and then customers and the Company would do much better.

    Well, that’s my opinion anyway.

    Frank diGiacomo
    Customer Account Supervisor



    ^ ^
     
     Section 3 - On the Horizon
      
    Investing in People

    Keith Skeoch, CEO of Standard Life Investments, explains his view of the human resources function - This article was originally published in TheHRDirector, Issue 35, April 2007.

    Do you view the human resources function in your organization as a cost center or one that actually drives value for the business?

    Keith Skeoch: Clearly, it is a value driver and value creator. However, I don't see it as HR but rather talent management. In an asset management firm, success rests on human capital and technology, and talent management/HR is absolutely critical for our most important assets. We outsource all of our commodities -- so that Gordon Teasdale, our HR director, and his team can focus on the strategic development of our human capital rather than working as a process-driven team.

    On what do you base this opinion?


    Skeoch:
    If we are going to spend money and time on our valuable resource, i.e. our workforce, we want to make sure we can add value by developing that human capital. My job and Gordon's is to make sure we do that. Having a huge number of people processing the payroll doesn't add value, whereas ensuring that we have the best employees making the right decisions for us most certainly does.

    Do you think HR should play a role in developing overall business strategy, or is its expertise best suited to implementing the people issues within strategy that is decided by other executives?


    Skeoch:
    HR is embedded in all that we do. When we look at where we'd like to be in five years' time, we always identify our strategic priorities -- the operational deliverables that are the "must dos" to deliver those plans. Our key strategic priorities are shared across our four "pillars" -- investment performance, process (i.e. the process that delivers and administers that investment performance), people, and profit. Thus, the people aspects are fundamental to our business imperatives. Leadership and engagement are two things we have taken phenomenally seriously over recent years, as has building a strengths-based organization, and these are at the core of our overall strategy.

    What do you think is the key contribution that HR makes to your business?


    Skeoch:
    Ensuring the quality of our people and our ability to recruit, develop, and retain the best talent. Culture is very important to us -- as much so as technical expertise -- so Gordon and his team have identified attributes that are required for successful Standard Life Investment employees. Within our recruitment processes we use the Gallup Q12 [employee engagement] interview, and then match the results of these interviews against our own criteria. Providing a superior investment performance is very much linked to the decision making of individual employees, so ensuring we choose the right people is critical.

    In addition to the normal aspects of HR and talent management, our HR team is also very involved in internal communication and how that links with engagement. We have grown very rapidly over the last three years, and our personnel has expanded from 500 [to] 800 in that period, which brings new leadership challenges. Gordon and his team have been focused on rolling out a very interesting leadership program, which has included a whole week of leadership development training where we have had both internal and external speakers to stimulate debate, allow people to think through how the issues relate to themselves, and enable us to embed key messages concerning the vision of the company and our employees' part in it. As part of our full planning day -- which most organizations use to consider financial issues -- we set aside a quarter of that time to discuss our current leadership style and how we need to take this forward. So you can see that it is key to our strategy.

    How do you measure the ROI of HR within your company?


    Skeoch:
    We use a number of measures -- indirectly, I guess, on some of the things we do. However, we do have quite rigorous quantitative methods for assessing the quality of our people -- through investment performance and risk-adjusted performance both in terms of teams and individuals. We also have a corporate scorecard with a number of exacting measures in all of those categories. We monitor the quality of our talent pool by carrying out the Gallup Q12 twice a year, which is a key measurement for us. We also look at the results of our formal appraisal processes, and obviously factor in things such as employee turnover. There are some formal measures that tell us whether or not we are an upper quartile organization, which is what we want to be. Currently we are in that upper quartile compared to most firms and, due to the significant progress we have made, we are higher than any of the other Standard Life group companies.

    Is your HR director on the board?


    Skeoch:
    No, but he is a key member of our senior executive committee, which is the team [that] is responsible for running the business on a day-to-day basis. Gordon is in charge of the development and execution of our one-year-ahead operating plan, which forms part of our overall five-year business plan, so he is fully and actively involved at a senior level.

    Can you see a time when that role would be represented at board level?


    Skeoch:
    It's possible that in the future, if we have a bigger board, the HR director could join it. We're a 100% owned subsidiary, and the Board currently tends to act more as an oversight committee, focusing more on long-term strategy and governance issues in a much broader sense.
    However, in terms of what we do every day, it would make no difference if Gordon was on the Board -- otherwise he would certainly be a Board member now. In terms of formulating what we do and what we are working towards, Gordon is right at the center of it all, planning it and making it all happen.

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