Cheloha Consulting Group C O N F I D E N T I A L | Managing the Younger, Changing Workforce Randall S. Cheloha, Ph.D. September

Cheloha Consulting Group

C O N F I D E N T I A L | www.ChelohaConsulting.com

Managing the Younger, Changing Workforce

Randall S. Cheloha, Ph.D.

September 23, 2011

Plumbing-Heating-Cooling Contractors Association (PHCC)

Minneapolis, MN

2© 2011 Cheloha Consulting Group. All rights reserved,

Introduction

Presentation Goals

Introduction/Background

I. Understanding and Managing the Younger Generation

II. Technology Transformation

III. Functions of the Brain and their Influence on Emotion & Attention

IV. Emotionally Engaging your Employees (EE)


I. Understanding & Managing the Younger Generation


Definitions

Baby-Boomers: Post WWII-1945-1964– Oldest-- 65 y/o– Youngest--45 y/o

Gen X: After Baby-Boomers-1965-1982– Oldest-- 46+ y/o– Youngest--29 y/o

Gen Y: (Echo-Boomers; the Millennials)– Oldest—28 y/o– Youngest-our children– This is the group most affected by and comfortable with the huge

technological transformation of the last 15 years.- 1st Desk top Computer (Gateway) -1994, 250 meg storage- Apple Nano (demonstrate) -2011, 16 gig storage (x160,000

more)


Understanding Human Nature

However, Human nature remains the same over time, a long time– We evolve very slowly. 1 million years on planet vs. earth’s age-

4.5 billion years (carbon-dating of rocks)

Evolutionary Psychology– In Group/Out Group (groups =12-20)– Gossip (the ‘water cooler’)—scarcity of resources– Need for a Leader-if not appointed, emerges (leaderless group)– Leader Characteristics (Projection of our needs)

Simple Models for Understanding & Assessing Human Nature/Personality– Values, Attitudes, Behaviors– Mathematical Equation

6©Cheloha Consulting Group, 2011

Relationship of Behavior, Attitudes, Values

The Iceberg (90% hidden)

VALUES

Attitudes

Behavior: What’s Visible


The Iceberg (Closer to Scale); 90% hidden

VALUES

Attitudes

Behavior: What’s Visible

BehaviorBehavior


Mathematical Equation for Assessing Human Capability

((V + S – (DN)) * WE = CAPABILITY

Key:V-VALUESS-StrengthsDN-Development Needs/Weaknesses/Blind spotsWE-Work Ethic


Values: What do you want from work?

1) Aesthetics

2) Affiliation

3) Altruistic

4) Commerce

5) Hedonism

6) Power

7) Recognition

8) Science

9) Security

10) Tradition


Strengths: What you bring to the party.

Adjustment/Emotional Stability (the governor)

Ambition/Drive

Sociability

Interpersonal Sensitivity– Read people? Avoid confrontation?

Prudence/Judgment

Inquisitive/Learning Approach


Development Needs/Weaknesses/Blind-Spots (lo scores are STRENGTHS)

1) Excitable—ups and down in moods; emotional; expressive (lo=EQ)

2) Cautious--risk averse, avoid making decisions (lo=Decisive)

3) Skeptical—mistrustful, vindictive (lo=builds trust with others)

4) Reserved—introverted; poor communicator; insensitive to morale (lo=communicator)

5) Leisurely--passive/aggressive, mean (lo=responsive)

6) Bold-narcissistic feelings of entitlement (lo=modesty)

7) Mischievous-careless about commitment, loose ‘honesty’ (lo=integrity)

8) Colorful–reactive, manage by crises, center of attention (lo=good judgment)

9) Diligent—over controlling micro-manager (lo=delegate, empower)

10) Dutiful-eager to please boss, ‘brown nose’ (lo=provide support, independent)


Some Examples of Types (Weaknesses/BlindSpots)

Reserved: – Get out of office– Host social event

Bold/Narcissistic; sense of entitlement – Surround with strong others (why succession fails)– Listen/trust at least one other person

Dramatic; Always center of attention; bold clothing colors; sweep into a room (Greta Garbo, Lady GaGa)

Dutiful: Need permission slip to do anything– Apple/Steve Jobs– My old firm (MDC)


Performance Reviews: Providing Feedback and Coaching

Principles of Providing Good Feedback– The closer to event, the better; immediate– Direct, focused, and tactful– But, supervisors focus most on recent events during Annual

Review – Discuss again during Annual Review; no surprises– Ratio of 10:1 positive to negative– Negative feedback engenders Defensiveness and emotional

“shutdown”- People don’t hear what you say after 1st negative comment,

so…- Keep it brief—make your point- Check for understanding then—and check again 5 days later


Formula for Leadership Development & Coaching

Awarenessand

Acceptance50%

SkillBuilding

25%

Energy25%

1

23

Page 5


Realities of Coaching

Needs to be positive/trusting alignment between coach and coachee for coaching to work (interests aligned); that’s why boss/subordinate coaching is rarely effective

Most emotional memories are laid down by age 5 (Doyles) so people naturally react emotionally to any threat

Coaching needs to be a combination of Challenge & Support

People can only change a little; but that little has a big impact on behavior (willow tree and guide wire)

Build off strengths; acknowledge and ‘fence off’ weaknesses– Counter-intuitively: people will change most in their area of their

strengths


Fast (1) & Slow (2) Brain Circuits: Reaction to Stimuli (50 vs. 500 milliseconds)

AMGYDALA

HippocampusThalamus

Cerebral Cortex

STIMULI

S2

S2

S2

S2S1

Reaction


Lack of Change/Improvement leads to Termination: Sooner or Later

Most frequently acknowledged mistake by senior leaders—

“didn’t cut the cord on X soon enough”

“gave him/her too many second chances”

Firing people one of the most unpleasant if not the most unpleasant tasks of being a boss; don’t assume the situation will get better if you ignore it– Step back and assess the overall situation

- Does he KNOW what to do? (K)nowledge- Does he KNOW how to do it? (S)kill- Does he WANT to do it? (A)ttitude

Then ‘lay track’; individual should see it coming, not be surprised


II. The Technology Transformation: Do we Manage Technology or does Technology Manage us?


Contacting Someone in the Era of New Technology

Old Days (before 1995) Letter, telephone, go see them; fax?

New Days (after 1995)– Telephone (office, mobile, home)– Texting; E-Maill– Facebook:

- shape what we share and who we are- investigated by University recruiters- Now—what we buy- Linked-In for Professionals

Dante’s Inferno: Trying to Reach a Real Person in Customer Service– ‘Listen to carefully to our menu as our prompts have recently changed’– Enter your account # and a great deal more of information several

times; and then we’ll ask you again on the telephone– Be advised that it would be faster/better/easier if you used the internet– Begrudgingly (you loser, you) say Operator or Agent and someone will

come on the line (within the next 20-30 minutes)


Technology Transformation is NOT New

War: Horse, gunpowder, cannon, rifle, machine gun, bombs

Printing Press/Broad Sheet/ Newspaper/Broad sheet (1600’s-

Railroad (1830’s-

Telegraph/Telephone (approx. 1850-

Automobile/Airplane (1890-1920-

Radio/Television (1920-1955-

Now: PC; Internet; email; mobile phone; Blackberry; Smart Phone; I Pad


Characteristics of the Younger Generations

Hop from job to job (have a new job every year or 2)

Expect immediate satisfaction (no ‘paying your dues’)

Spotty work ethic

Used to instant access/instant gratification due to technological nursing

– Music (Ipod/nano) --Facebook (friends)

– YouTube --Google (information/maps/everything)

– Kindle (revamped publishing industry)

Splintered attention span; Multi-tasking (may lack listening skills, discipline, persistence)

Use technology to keep relationships/intimacy at a bay

– Defense mechanism, control needs

– Who do you call? What channels?


How do you Reach Them? Build a Relationship.

Getting to know them (interview)

1st day

Working together

Lunch: interests, family, hobbies, what’s important

Social gatherings

Team building


Implications of Multi-Tasking (brain is not sufficiently evolved to handle it)

Women are better at multi-tasking than men

As we age, it’s harder and harder to ‘change gears’ (brain flexibility)

As we age, brain processing speed slows

When feeling overwhelmed, we can not focus and more emotional:– And when we don’t focus

- Quality of work suffers

- Easily distracted; react— don’t think things thru- Receive less satisfaction from work- Prone to depression, lower affect- It becomes a vicious circle


III. Brain Functioning and How It Influences Emotion and Attention


The Ghost in the Machine (’67): Brain Evolution

AUTOMATIC PILOT BRAIN

Emotional Brain

EXECUTIVE BRAIN


Functions of the Brain

‘Automatic’ Pilot Brain (Brain Stem)– Autonomic Nervous System– Breathing --Sleep cycles/wakefulness– Circulation --Circadian rhythms– Consciousness (drugs)

Emotional Brain (Amygdala, Hippocampus, Thalamus)– Emotion– Integration of Range of Brain Functions– Senses– Attention


Functions of the Brain (Continued)

Executive Brain (Frontal Cortex); The Seat of Reason– Self-Control; Control– Inhibition of Impulses & Reactivity (car accident that shears

frontal lobs)– Thinking; Complex Cognition– Judgment & Decision Making (grows until 30’s)– Sifting through Context/Subtleties


Fast (1) & Slow (2) Brain Circuits: Reaction to Stimuli

AMGYDALA

HippocampusThalamus

Cerebral Cortex

STIMULI

S2

S2

S2

S2S1

Reaction


The Ghost in the Machine: The Evolution

‘AUTOMATIC PILOT’ BRAIN

Emotional Brain•Senses: Light, Sound, Balance

•Disrupts: Computer Screen; texts; Facebook; Multi-Tasking

•Attention/FOCUS

EXECUTIVE BRAIN•Evolves until 50’s

• Exhibits Control/Inhibition


Fast & Slow Brain Circuits (Reaction to Stimuli)

STIMULI

S2 S2

S2S1

Reaction 2 =Think, Consider, Context, Address Subtlety

AMGYDALA

HippocampusThalamus

Cerebral Cortex

S2

Reaction 1= Anger, Lose Temper, or ‘Meltdown’


Bobby Knight (Former Indiana University & Texas Tech Basketball Coach)


The Effect of Negative Feedback on Employee Performance

Self-view

Gap—How I think I’m doing vs. How other’s think I’m doing

Negative Feedback/Criticism produces Emotional Arousal

Defensiveness

Inability to hear and frequently mis-interpret


WHY Owners/Entrepreneurs aren’t Optimally Wired to Manage Others

Independent

Stubborn, determined, focused

Assume other people are the same (they’re not)

Over the top drive/determination

Risk tolerance (many people don’t have it!!; hard-wiring)

Assume other’s can self manage (a few can, some can’t)

Overly hands-on; detailed; perfectionist

CONTROLLING (micro-manager); hard to let go


IV. Emotionally Engaging Your Employees


Our New Employees

Gen Y: (Echo-Boomers; the Millennials)– Oldest—28 y/o– Youngest-our children– This is the group most affected by and comfortable with the

huge technological transformation of the last 15 years.- 1st Desk top Computer -1994, 250 meg storage- Apple Nano (demo) -2011, 16 gig storage (x160,000)


Why is Emotional Engagement Important?

More engaged are more productive (300%)

More engaged produce higher quality

More engaged have less absenteeism

More engaged have lower healthcare premiums

More engaged turnover less

More engaged build your brand

More engaged improve customer service

Examples:

– Philadelphia PIC (Deloitte) from Baltimore strategy for turning around PHL office

– “window time” in construction work moving from job to job vs. GPS


Motivation: Maslow’s Hierarchy of Needs (ca. 1943)

Self-EsteemAcceptance/Recognition

SAFETYSECURITY

MEANINGAUTONOMY

SURVIVAL/PHYSIOLOGICAL


Motivation: Herzberg’s Two-Factor Theory (ca. 1950’s)

Motivating Factors=Growth

Hygiene Factors=Maintenance

•Pay, Security, Co-Workers, Work Environment, Policies (Job Satisfaction)

•Challenge, Stimulation, Autonomy


Definition of Job Involvement (Lodahl & Kejner ’65)

Job Involvement: An emotional attachment; engaged in work; a decision about this place (longer term)

Observation of Karen, the admin., during Summer Internship, State of PA– Inspiration for ’77 study– Remembered by Civil Service Director, Beth Hartmann, 30 years later

While job satisfaction (hygiene factors) are related to absenteeism and sick leave…

Job involvement is a better predictor of absenteeism than job satisfaction

Job involvement is deeper than job satisfaction:– Job satisfaction=short term; day to day; what’s fair/balance; days work

for a days pay– Job involvement=longer term; I’ve decided that I like my work and

where I work; an emotional commitment


Old Wine in a New Bottle: Employee Engagement (>2004)

Four (4) Key Components– Pride: Tell you what they do vs. who they work for; back car in at

parking lot – Advocacy (Customer service)– Motivation (Motivation comes from within)– Commitment (Endure obstacles, work thru

negatives=persevere)

Gallup Study of Employee Attitudes (BBY, Richfield, 1999)– More engaged employees/stores; yielded higher profits– Best predictor of $$/Success:

- ‘I have a best friend at work’


Example: Gallup Employee Engagement Items (Strength-based management)

I feel inspired to do my best every day

I am proud to work for this company

I am motivated to contribute more than what is expected of me

People in my work group frequently go above and beyond the requirements of the job

My company provides supportive policies that allow me to attain my work and personal goals

My company has created a positive work environment

My relationships with co-workers inspire me to stay committed to the company


Do Happier Employees Work Harder? (NY Times, 9.4.11)

US Cost of Employee Disengagement=$300 billion

Study: Diary entries from 238 industrial workers– Over 12,000 entries– In 33% of entries, person was unhappy, unmotivated, or both

US Cost of Sick Days and Depression=$44 billion– Study

- 39,000 employees- 23% were mildly to severely depressed (1 in 4)


Why Entrepreneur/Owner/Bosses are not the Optimal Manager

Introverted-don’t reach out to others

Focused (laser-like)

Determined & persistent (assume others are same way—they’re not); can be insensitive (thick-skinned, not thin)

Autonomy; like to be independent

Risk-tolerant (less security conscious)

Work ethic (not 9 to 5)

Sacrifice immediate for the future (build a business)


What is the Boss/Supervisor/Owner’s Job regarding Employee Engagement?

Kaiser Permanente study (West Coast Health Insurance):– Employees with better work climates

- 1) Have freedom to manage their own time- 2) Receive support from their supervisor- 3) And, are less likely to visit primary care provider (<<

depression, sickness)

Role of the Boss:– Remove obstacles– Provide help– Acknowledge strong effort

Goal: Make Progress in Meaningful Work


Summary: The High Points

Human nature changes very little

You can coach people; but they won’t change very much; build on strengths– However, the change they make is very important

Communication technology has a negative effect on our work and we need to be manage it

Brain function and physiology are more important than we thought or understand– On the one hand we are more adaptive– On the other hand, we are not as adaptive

Engaged employees are more productive, do better work and make your business more profitable

YOUR JOB: job: create a Place where Employees can make Meaningful Progress on Work


Cheloha Consulting Group

Wynnewood, PA

Randall S. Cheloha, Ph.D.

[email protected]

610-896-9494

Documents

Cheloha Consulting Group C O N F I D E N T I A L | Managing the Younger, Changing Workforce Randall S. Cheloha, Ph.D. September