Month May 2024

Why Ethics are Such a Big Deal in Business

Steve Keating Leave a comment

I should probably add “some” to the title of this post. As is, “Big Deal in Some Businesses.” Or I could have made the title “Why Ethics are Such a Big Deal to a Sustainable Business.” But I’d like to think that ethics matter to every business, and every business person, even though I know that’s not true.

Even a small group of unethical people can harm a once highly ethical organization. Ethics are fragile. They can slow down what seems to be progress at times. They can even seem to be expensive. That’s why some people simply don’t bother with them.

Some people are experts at justifying ethical lapses. They make a decision “for the business” that benefits them. They convince themselves it was ethical, even though it was not.

It was clearly an unethical decision but the passion with which they defend the decision is incredible to see. I sometimes think they actually believe themselves.

But, sustainable businesses cannot allow an unethical person’s passion, or even their results, to lessen the importance of ethics in their organization. Overlooking unethical behavior gets a business one thing and one thing only, it gets them more unethical behavior.

If you lead an organization, big or small, you must understand that unethical behavior will first weaken, and then destroy, its foundation. That’s not a guess, that’s not a maybe, that’s a fact.

There are a host of reasons why ethics are fundamentally important to a business, here’s the most important ones.

1. Trust and Reputation: Ethical behavior builds trust. It does so among customers, employees, investors, and other stakeholders. A company that is known for its ethical practices is more likely to attract and keep customers and talent. It will also have strong relationships with suppliers and partners. A good reputation is a big advantage. Ethical lapses can lead to scandals. Scandals damage a company’s reputation and erode customer loyalty.

2. Legal Compliance and Risk Management: Following ethics helps ensure obeying laws and rules. This reduces the risk of legal penalties, fines, and lawsuits. Ethical businesses are proactive. They identify and address potential legal issues. This can prevent costly lawsuits and regulatory scrutiny.

3. Employee Satisfaction and Retention: A strong ethical framework contributes to a positive workplace culture. When employees feel they are working for an ethical company, they are more likely to be engaged, motivated, and loyal. Ethical practices attract top talent and reduce turnover. This saves the company money on recruitment and training costs.

4. Customer Loyalty and Satisfaction: Ethical behavior builds customer loyalty. Customers prefer to do business with companies they perceive as honest and responsible. This loyalty leads to repeat business and positive word-of-mouth. These are crucial for long-term success.

5. Sustainability and Long-term Success: Ethical businesses often focus on sustainability, both in terms of environmental impact and long-term strategic planning. By considering the broader impact of their actions, these companies are set up for long-term success. They invest in sustainable practices. These practices may cost more at first, but they yield benefits. These benefits include brand loyalty, operational efficiency, and risk management.

6. Investor Confidence: Investors are increasingly looking at ethical considerations when making investment decisions. Investors see companies with strong ethics as lower-risk. This is because they are less likely to have legal, reputation, or operational problems from unethical practices.

7. Innovation and Creativity: Ethical companies often foster an environment where innovation and creativity can flourish. They encourage transparency and integrity. This creates a culture where employees feel safe to share ideas and take calculated risks. They have no fear of unethical repercussions.

8. Community and Social Impact: Ethical businesses recognize their responsibility to the communities in which they operate. Ethical practices help companies contribute to society. This can enhance their standing and create goodwill in the community and beyond.

Ethics are crucial for building a sustainable and successful business. They maintain trust. They ensure compliance. They foster a positive work environment. They secure customer and investor loyalty. By making ethics a priority, businesses can navigate challenges better. They can also build a strong base for future growth.

Ethics are the responsibility of every member of an organization. That’s an all day everyday responsibility. Once a year “training” in ethics does not absolve anyone of the responsibility to hold each other accountable to the highest of ethical standards.

The reality is every person in an organization must be ethical or the organization itself is not ethical. Think about that and you may be less willing to allow a person’s passion to explain away their lack of ethics.

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How to Give a Meaningful Compliment

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I often ask during leadership presentations how many of the attendees compliment the people they lead. Most of the hands in the room go up. Then I ask for some examples of compliments they’ve given their people.

My favorite is “nice job” followed by “way to go” and “keep up the good work.”

I don’t know what those phrases are, but they are most certainly NOT compliments. They are what I call “throw-away” comments. They require little to no thought and carry almost no weight. They are not meaningful statements.

Which is sad because we all crave the recognition and feeling of accomplishment that comes with a sincere and meaningful compliment. Most leaders toss out those throw-away comments because they don’t understand the power of a sincere compliment. Many of those so called “leaders” are also too lazy to invest the effort to develop a compliment that is both meaningful and memorable.

But it’s really not that hard, and the “return” on that effort can be literally life changing. So if you’re a leader, or simply a caring person who wants to make a difference in the life of another person here’s how you can do it.

Giving a meaningful compliment involves being genuine, specific, and thoughtful. Below is a step-by-step guide to ensure your compliment resonates and makes a positive impact.

• Be Genuine: Authenticity is key. Compliments should come from a place of sincerity. Avoid exaggeration or flattery that doesn’t feel true to you.

• Be Specific: General compliments like “You’re great” can feel hollow. Instead, focus on particular qualities or actions. For example, “You did an excellent job organizing the event. Your attention to detail really showed in how smoothly everything went.”

• Focus on Effort and Qualities: Highlight the effort someone put into something or a specific quality they possess. This shows you recognize and value their hard work or character traits. For instance, “I really admire your dedication to your work. Your perseverance is inspiring.”

• Relate to Impact: Explain how their actions or qualities have positively affected you or others. This adds depth to your compliment. For example, “Your kindness in helping me with that project last week really made a difference. It relieved a lot of my stress.”

• Be Timely: Deliver your compliment close to the event or behavior you’re praising. Timeliness ensures the compliment is relevant and feels more genuine.

• Use Appropriate Language: Tailor your words to the person’s preferences and the context of your relationship. For a colleague, you might say, “Your presentation was very insightful,” whereas for a close friend, you might say, “I love how you always know how to make everyone feel welcome.”

• Body Language and Tone: Ensure your nonverbal cues match your words. Maintain eye contact, smile, and use a warm tone to convey sincerity.

• Avoid Comparisons: Complimenting someone by comparing them to others can diminish the value of your compliment. Focus on the individual’s unique qualities or achievements.

Here are a few examples of meaningful compliments:

• To a coworker: “Your creativity in that marketing campaign was impressive. It really stood out and made our product shine.”

• To a friend: “I always feel heard and understood when I talk to you. Your empathy means a lot to me.”

• To a family member: “Your dedication to our family is incredible. The way you always find time to support everyone is truly admirable.”

You have the ability to make your compliments way more meaningful. You can make the recipient feel genuinely appreciated and valued. You can pay them a compliment that they will hold on to for a very long time. You can provide them with the motivation to reach for the stars and achieve their full potential. YOU, yes YOU, can do all of that.

You only have to decide it’s important enough to make the effort.

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Why Having a Positive Attitude Matters

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I have written about how to maintain a positive attitude many times. I’ve acknowledged my own shortcomings in that all-important area of life. I’ve talked about your attitude being your choice and how difficult a choice that can be at times…okay, most times.

But I don’t think I’ve ever specifically laid out the actual benefits of maintaining a positive attitude. These benefits are real and they impact most areas of your life. Having a positive attitude is crucial for several reasons. These reasons encompass both personal and interpersonal aspects of life.

Here are some major reasons why maintaining a positive outlook is important for a productive and happy life.

1. Mental and Physical Health

• Stress Reduction: A positive attitude helps in managing stress effectively. People who maintain a positive outlook are better equipped to handle stressful situations. That reduces the overall impact of stress on their mental and physical health.

• Immune System Boost: Positive emotions are linked to improved immune function, making it easier for the body to fend off illnesses.

• Longevity: Studies have shown that people with a positive attitude tend to live longer and lead healthier lives.

2. Resilience and Coping

• Adaptability: A positive attitude fosters resilience. It allows people to adapt to changes and bounce back from setbacks more efficiently.

• Problem-Solving: Optimistic individuals are more likely to approach problems with a focus on solutions. This raises their chances of finding effective resolutions.

3. Relationships and Social Interactions

• Improved Relationships: Positivity attracts others and fosters healthier, more supportive relationships. People are generally more inclined to be around those who emit a positive energy.

• Conflict Resolution: A positive attitude can defuse tensions and lead to more constructive outcomes in conflicts.

4. Performance and Success

• Enhanced Productivity: A positive outlook can increase motivation and energy levels, leading to higher productivity and better performance in both personal and professional settings.

• Goal Achievement: Optimistic individuals tend to set higher goals and persevere through challenges, increasing their likelihood of achieving success.

5. Overall Life Satisfaction

• Happiness: Positivity is strongly linked to higher levels of happiness and life satisfaction. People with a positive attitude are more likely to find joy in everyday activities and appreciate the good aspects of life.

• Sense of Purpose: A positive outlook helps individuals find meaning and purpose, contributing to a more fulfilling life.

6. Influence on Others

• Inspirational Impact: Positivity can inspire others. It uplifts them, creating a ripple effect. This effect enhances the mood and outlook of those around you.

• Leadership: Positive Leaders can motivate teams. They also encourage them, fostering a collaborative and innovative environment.

A positive attitude significantly contributes to improved mental and physical health, resilience, and enhanced relationships. It increases productivity, and overall life satisfaction. It not only benefits the individual but also positively influences the people around them.

Be a light for others, share your positivity, and never allow the negativity around you to steal the joy from your life.

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When the Boss is a Bully

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There are three types of people who have authority over others in the workplace. One is an Authentic Leader. This type of individual is a joy to work with. They care as much about the success of the people they lead as they do about their own success. They work tirelessly to help people reach their full potential, both at work and in life.

The second is a manager. They often think of themselves as leaders, but leading and managing are two very different things. The managers are typically more concerned with process than with people. They get stuff done, but in a much more tactical way than a leader would. They are not necessarily bad to work for, but it’s not as rewarding an experience as working with a leader.

Then there is the boss. Bosses are not usually great at managing, and they are even worse at leading. It’s not that they want to be, but if they have worked for a bad boss in the past, they are very likely to be a bad boss themselves. That doesn’t make them bad people; it just limits their ability to help people grow while getting stuff done.

But just as there are “levels” of leadership and managing, there are also levels of bossing. And no level of boss is worse than the boss who is a bully too.

Dealing with a bully is hard. It’s especially hard when the bully is your boss. Here are some steps to at least make an attempt at handling that situation.

• Stay Calm. Keep your composure and try not to react emotionally. It’s essential to maintain professionalism in any confrontation. Obviously, this is easier said than done. None of us want to be somebody’s doormat. It’s instinctive to stand up for yourself. But you must rise above your lowly bully boss and be as professional as possible in all circumstances.

• Document Everything. Keep a detailed record of the incidents. Jot down dates, times, what was said or done, and any witnesses present. This documentation can be crucial if you need to escalate the issue later.

• Understand the Motivation. Try to understand why your boss is acting this way. Sometimes, their behavior might stem from personal issues, stress, or insecurity. Understanding their motivation can help you devise a more effective strategy for dealing with them. Don’t merely dismiss them as being a jerk; they might be, or it might be something entirely different causing them to be difficult.

• Set Boundaries. Politely but firmly assert your boundaries. Let your boss know that their behavior is not acceptable to you. Be assertive without being confrontational. Let them know when they have crossed a line. You may need to remind them more than once. Only you can determine when “enough is enough” and it’s become time to escalate. If one time equals “enough is enough” for you, that’s fine. It doesn’t make you weak or a quitter or anything else. It only makes you someone who is protecting your own mental health, and that’s never a bad thing.

• Seek Support. Talk to someone you trust about the situation, such as a colleague, HR representative, or mentor. They might offer valuable advice or support.

• Address the Issue Directly. If you feel comfortable, consider having a private conversation with your boss to address their behavior. Choose a time when both of you are calm and free from distractions. Use “I” statements to express how their actions are impacting you, e.g., “I feel uncomfortable when…”

• Utilize Company Policies. If the bullying persists or escalates, familiarize yourself with your company’s policies regarding harassment and workplace behavior. Consider reporting the behavior to HR or a higher-level manager. Again, this does not mean you’re a tattletale or any kind of loser. The policies exist because, as long as there have been bosses, there have been bosses who were bullies. Use the policies to your benefit because it’s very likely you’re benefiting others in your organization as well.

• Explore Other Options. If the situation does not improve and your well-being continues to suffer, you may need to explore other job opportunities. No job is worth sacrificing your mental health. Resist the very human temptation to seek revenge on your way out the door. That’s not going to “fix” the boss, and in the long run it may cause you more regrets than the short-term satisfaction of revenge is worth.

Remember, you have rights in the workplace, and no one should have to endure bullying behavior, regardless of the perpetrator’s position. Never forget how valuable you are, both within the workplace and outside of it too. Don’t allow a bully to cause you to doubt that reality. You matter, you are special, you make a difference for people. A bully saying otherwise will never change those facts.

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How to Build a Strong Organizational Culture

Steve Keating 4 Comments

Peter Drucker, the legendary management consultant once said, “Culture eats strategy for breakfast.” What he meant by that is you can have all the strategy in the world and if the culture in your organization is poor the strategy is unlikely to be implemented.

You can also hire the very best people but if your culture is poor it’s your very best people who are likely to leave first. Nothing plays a bigger role in an organization’s success than culture. Absolutely nothing!

An organization’s culture is the responsibility of the top leader. It is not something that can be delegated to HR or some consulting firm. CEOs of top performing companies invest a massive amount of time ensuring that the organization’s culture is one of two-way trust, with a growth mindset and exceptional lines of communication. It’s a caring culture where people are valued for the mere fact that they are human beings who make a difference in the world.

CEO’s who do not understand their role in defining their organization’s culture are CEO’s who put their organizations at risk. Make no mistake about this fact, every organization has a culture. If it’s not intentionally crafted to be healthy culture, and nurtured DAILY to stay that way, then the culture will develop on it’s own.

A “self-developed” culture is never an organization sustaining culture.

Building a strong organizational culture involves creating an environment where employees feel valued, engaged, and aligned with the company’s mission and values.

Here are the building blocks to a healthy sustainable culture that fosters long-term success.

Define Core Values. Start by defining the core values that reflect what your organization stands for. These values should guide decision-making and behavior at all levels. Ensure that these values are clear, concise, and actionable. Understand that if every member of your organization does not understand and live these core values then they likely aren’t worth the paper you’d print them on.

Lead by Example. Leadership plays a crucial role in shaping organizational culture. Leaders should embody the values they preach. They should show integrity, transparency, and inclusivity in their actions and decisions. Remember, you lead by example whether you realize it or not. Your people are always watching you and if you’re not living the core values of the organization then they won’t either.

Communicate Effectively. Transparent communication is essential for fostering trust and alignment within the organization. Keep employees informed about company goals, strategies, and any changes. Encourage open dialogue and feedback channels. Some “leaders” believe withholding information from their people somehow makes them more important. If you’re a leader who believes keeping your people in the dark is a good thing then you’re a weak leader beyond measure.

Encourage Collaboration. Create a team where employees are comfortable sharing ideas. They should seek feedback and work together towards common goals. Promote cross-functional collaboration to break down silos and encourage innovation. Silos are good on a farm but they are often deadly in an organization looking to grow.

Empower Employees. Empower employees by giving them authority. Also, give them chances for growth. And, recognize their contributions. Encourage autonomy and ownership over tasks and projects. And remember, if you’re standing in their way with your micromanagement hat on, then you really haven’t empowered them. So turn them loose and stay out of their way.

Promote Diversity and Inclusion. Embrace diversity and inclusion. Do this by creating a culture that celebrates differences. It should value the unique perspectives and experiences of all employees. Ensure that policies and practices promote fairness and equality…for everyone. Understand the difference between valuing diversity and going woke. Valuing diversity builds bridges, going woke builds walls.

Celebrate Successes. Recognize and celebrate achievements, both big and small. This reinforces good behavior. It creates a sense of accomplishment and belonging in the organization. There really is not a success that is too small to celebrate.

Invest in Employee Well-being. Prioritize employee well-being by offering programs and resources that support physical, mental, and emotional health. Create a supportive work environment that promotes work-life balance and stress management. Then, encourage your people to use those resources on a regular basis. There is no value to a resource that is never used.

Provide Continuous Feedback. Create a culture of continuous feedback. Employees get regular, helpful feedback on their performance. They also get chances to give input on the organization’s processes and initiatives. And just so we’re clear on this… a once a year “review” is NOT continuous anything, except perhaps a continuous waste of time.

Adapt and Evolve. Culture is not static; it evolves over time. Stay attuned to changes in the internal and external environment and be willing to adapt cultural norms and practices as needed. This will ensure relevance and alignment with the organization’s goals and values.

Building a strong organizational culture is not a part time job. By focusing daily on these key elements and consistently reinforcing them through actions and initiatives, CEO’s and their organizations can build a strong and vibrant culture. One that drives employee engagement, retention, and overall success.

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Earning the Commitment of the People You Lead

Steve Keating Leave a comment

I am frequently asked about the difference between managing and leading. I am frequently asked that by people who don’t believe there is a difference. I know almost instinctively that the people who do not believe there is a difference between managing and leading are not leading people. They are attempting to do the impossible, which is manage another human being.

It’s impossible because human beings mostly refuse to be managed. They resist at every opportunity and when the opportunity to resist doesn’t arise they will create one. People want to be led.

The best a manager can do is coerce the compliance of their people. The problems with that are many but here’s one of the biggest ones. When the manager isn’t directly in the presence of their people the compliance isn’t either. That’s why I say attempting to manage people causes most of the people issues managers deal with.

Leaders on the other hand work to earn the commitment of their people. The advantages of having the commitment of the people you lead are also many but here’s a huge one. When the leader isn’t physically present the commitment of the people remains. They continue to produce and behave exactly as they would if their leader was with them.

The reality is, earning the commitment of the people you lead is crucial for building a strong and cohesive team. Without that commitment there will always be personal issues. Managers will tell you that some of the biggest challenges with their job are people related. Leaders seldom if ever say that.

If you’re interested in eliminating most of the personal issues in your organization, here are some strategies to earn the commitment of your people and put them, and your organization on the path to long-term success.

Lead by Example. Demonstrate the behavior and work ethic you expect from your team members. Your actions speak louder than words, so model the values, attitudes, and work standards you want your team to embody. When your team sees your commitment, they are more likely to emulate it.

Communicate Effectively. Keep lines of communication open and transparent. Provide clear instructions, share information openly, and actively listen to your team members’ feedback and concerns. Effective communication creates trust, encourages collaboration, and ensures everyone is aligned with the team’s goals and vision.

Empower and Delegate. Trust your team members with responsibilities and empower them to make decisions within their areas of expertise. Delegating tasks not only shows your confidence in their abilities but also allows them to grow professionally. When people feel trusted and valued, they are more committed to achieving shared goals.

Recognize and Appreciate. Acknowledge and appreciate your team members’ contributions regularly. Celebrate their successes, both big and small, and publicly recognize their efforts. Genuine appreciation fosters a positive work environment. It boosts morale, and reinforces commitment to the team and its objectives.

Provide Growth Opportunities. Support your team members’ professional development by offering training, mentorship, and opportunities for growth. Invest in their skills and career advancement, and encourage them to pursue their goals. When people see a clear path for their development within the team, they are more likely to stay committed.

Foster a Positive Culture. Create a supportive work culture. Make everyone feel valued, respected, and motivated to contribute. Encourage teamwork, collaboration, and a sense of belonging. Address conflicts and challenges promptly and constructively to maintain an environment where people are committed to working together towards common goals.

Lead with Empathy. Understand and empathize with your team members’ individual needs, challenges, and aspirations. Show genuine concern for their well-being and provide support during difficult times. When people feel understood and supported, they are more likely to remain committed to the team and its objectives.

Set Clear Goals and Expectations. Establish clear goals, objectives, and expectations for your team members. Ensure everyone understands their role in achieving these goals. Provide the necessary resources and support to help them succeed. Clarity and alignment around goals enhance commitment and motivation.

Celebrate Successes Together. Celebrate team achievements and milestones as a collective. Recognize the contributions of each team member towards the shared success. Celebrating together builds a sense of camaraderie and reinforces commitment to future endeavors.

These are the strategies that will help you earn the commitment of the people you lead. They will help you to build a high-performing team. They will act as the glue that holds the organization together in challenging times. They are key to achieving shared goals and lasting success.

As a leader you must remember, you manage “stuff.” Stuff like budgets, buildings and inventory. But you LEAD people. Once you have that difference firmly in mind your leadership potential is greatly enhanced. And so is the potential of every person you lead.

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How to Give Meaningful Feedback

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It is a bit surprising how many people in leadership positions are unaware how important feedback is to the people they lead. Some just don’t like giving feedback. Some think providing feedback could lead to a confrontation so they avoid it like the plague. Some, sadly, are simply too damn lazy to make the effort required to provide meaningful feedback.

But if you’re in a leadership position you must understand that your people need to know how they are doing. They need to know if they are meeting your expectations. They need to know if what they are doing is adding value to the organization. The need to know if they are making a difference.

If you don’t tell them they are likely to assume the worst. In all of those situations. That will demotivate them and cause them to disengage. I do not know of a single organization that can afford disengaged people. Not a one!

Giving meaningful feedback is crucial for the personal and professional growth of the people you lead. Whether you are comfortable with giving feedback or not you need to do it. Here are some steps that might help you give meaningful feedback in a way that doesn’t stress you, or your people, out.

Be Specific. Address particular actions, behaviors, or situations rather than generalizations. For example, instead of saying, “Your presentation was great,” say, “I appreciated how you used real-life examples to illustrate your points in the presentation.”

Be Timely. Offer feedback as soon as possible after the event or behavior you’re addressing. This ensures that the details are fresh in both your mind and the recipient’s, making the feedback more relevant and actionable. Do not “store up” a bunch of feedback and then bury someone with it all at once. There are few things a leader can do that are more demoralizing than that.

Be Balanced. Provide a mix of positive feedback and constructive criticism. Highlight what the person did well, and then suggest areas for improvement. This balance helps maintain motivation and morale while still encouraging growth.

Focus on Behavior, Not Personality. Feedback should address actions or behaviors, not the individual’s personality or character. For instance, instead of saying, “You’re lazy,” say, “I noticed that you missed the deadline for the project.”

Use “I” Statements. Express your observations and feelings using “I” statements to avoid sounding accusatory or judgmental. For example, say, “I noticed that you arrived late to the meeting,” instead of, “You’re always late.”

Offer Constructive Criticism. When providing criticism, be constructive and offer suggestions for improvement. Avoid simply pointing out flaws without providing guidance on how to address them. Do not say, “you need to do better.” Let them know exactly what “better” looks like and exactly how they can get there.

Be Sincere and Genuine. Authenticity is key to meaningful feedback. Ensure that your feedback comes from a place of genuine concern and desire to help the person grow, rather than from a place of criticism or judgment.

Encourage Dialogue. Feedback should be a two-way conversation. Encourage the recipient to ask questions, seek clarification, or share their perspective. This fosters mutual understanding and allows for a more productive exchange of feedback.

Set Clear Expectations. Clearly communicate your expectations moving forward, especially if the feedback is related to performance or behavior in a specific context. This helps the recipient understand what changes or improvements are needed.

Follow Up. Check in periodically to see how the person is progressing based on the feedback you provided. Offer ongoing support and guidance as needed, and acknowledge improvements or efforts made.

Giving meaningful feedback is not just about pointing out what went wrong. Any boss can do that. A leader is concerned about helping individuals learn and grow to reach their full potential. Make sure that’s your goal when giving feedback and you will do well.

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