Making decisions with disagreements

When it comes to business strategies and problem-solving, not everyone shares the same perspective. Before a decision can be made, it’s not uncommon for a disagreement to occur. As a leader, it’s your role to manage these disagreements without letting them disrupt the flow of your organisation.

Sometimes, it’s not always important, or even possible, to make the best decision when you don’t have all the information regarding a certain issue. It’s more important that the decisions are made and that they are made with due consideration. You can achieve this by creating a decision-making strategy and by following these best practices:

Leave emotion out of it

A disagreement can easily become personal. After all, each professional is defending their own point of view, which stems from a combination of their own knowledge and experience. But everyone has their own perspective and no single individual can understand all aspects of a situation. It’s important to remain professional and to leave emotion out of the decision-making process.

Not only can introducing emotions ultimately confuse issues, but it can also reduce the impact of any points you are trying to make. Being clear on facts and clearly justifying your decisions is necessary not only for the best possible outcome, but also to ensure that employees understand your reasoning and do not feel ignored or pushed aside.

Appreciate all suggestions

It’s very easy to dismiss suggestions either as being outlandish or something that you’ve already considered. But rather than making a quick decision and potentially undermining your employee’s confidence, you should instead explore the idea and walk them through your own thought process. Be open to ideas that you might have otherwise dismissed; there may be some components that you haven’t considered.

By being a good listener, asking questions, and trying to see everyone’s point of view, you can create a positive and cooperative atmosphere. Employees will be more willing to share ideas, and ideas that are truly innovative and creative will be more likely heard. Being a primary decision maker is often like being an investigator; you need to explore all of the data before drawing a conclusion.

A failure to consider your employee’s ideas, even when they are truly unsuitable, can eventually lead to frustrated employees who feel unappreciated. When employees offer their ideas, they are trying to help. When that help is ignored, they often feel personally rejected. Moreover, it can make employees hesitate when they truly do have a good idea, as they may feel as though they won’t be heard.

Keep the consequences of your decision in mind

By necessity, each suggestion during a decision-making process needs to be explored to its conclusion. Once the brainstorming is over, each potential decision should be thoroughly outlined, and the consequences of that decision should be thoroughly investigated. The following questions should be asked:

  • What are the potential results of this decision?
  • What complications could arise due to this decision?
  • Who will this decision affect positively or adversely?
  • What will be the ultimate cost, in time and money, of each decision?

It’s possible that you may not know which decision will perform better. It may be something that is truly unknowable, such as a scenario that relies on too many factors, or it may be a decision that requires additional information before it can be made. Either way, if a decision must be made at this time, then the potential consequences not only need to be acknowledged but they also must be prepared for.

In business, it is possible that a decision may need to be made without all of the information present. Because of this, you may need to simply choose the best out of all possible solutions and plan contingencies in the event that there are negative consequences.

Compromising often doesn’t produce the best results

When we were children, we were often taught to compromise. It made sense because compromising is a fantastic way to build relationships with friends and family. But compromise is not a fantastic way to run a business. As a CEO, you need to make decisions that are optimal, not acceptable. Compromise ultimately results in both parties getting a little of what they want and a little of what they don’t need. Compromise leads to two dissatisfied parties and a weakened overall strategy.

CEOs may feel the compulsion to compromise when it comes to important business decisions, especially if tensions and emotions are running high. But when it comes to business, it’s almost always better to set a solid course rather than trying to split multiple strategies. A CEO needs to carefully study when compromise is and isn’t appropriate, and practice mediation in lieu of compromising their decision-making process.

Make better decisions through positive leadership

As CEO, you have already been selected to lead your company. Your company has put its faith in your decision-making abilities for a reason. Part of that reason is because you make well-considered, well-crafted decisions. As long as you are not making every decision in the company, it’s your prerogative to override others.

But it isn’t always that simple, especially when tensions run high or the right decision may not always be obvious. During those times, you may want to reach out for mentorship. TEC provides direct access to leaders and business owners who have experience moderating the decision-making process and ensuring that the right decisions are made day after day. Contact TEC today to find out more. 

How to manage your star employees

Employees are what drives a business — and that’s why businesses are always competing for the best talent.

Industry professionals have estimated that up to 90% of an enterprise’s value is driven by its intellectual capital, but you don’t need to rely upon such abstract estimates. It’s already known that the average employee costs six to nine months of their salary to replace.

With all this in mind, it becomes necessary for CEOs and managers to focus on both acquiring and supporting their best employees. Unfortunately, model employees tend to disappear beneath the problem employees, making them feel unwanted and undervalued.

It’s a CEO’s job to ensure that all employees feel satisfied and recognised — especially the ones that are doing the most for the business.

Foster your team relationships

The Pareto Principle tells us that the top 20% of our employees will complete 80% of the work. By the same token, the bottom 20% of our employees will take up 80% of our time. This is what can cause a solid employee to disappear under a morass of more difficult ones. But when you manage a business, you aren’t managing just the top employees or just the bottom employees; you’re managing them all as a team. There will always be overachievers and underachievers, but you need to work with all of them effectively.

When employees work together, they are more likely to feel rewarded by a task successfully completed. Team-building exercises and corporate events can be used to further deepen and build upon these relationships, in addition to the foundation that a strong sense of company culture provides. A sense of camaraderie and team spirit is often enough to make employees feel like a valuable member, but the danger is that they may also feel as though they aren’t being rewarded for their direct and unique contributions.

Recognise and reward individual employees

Creating a company culture of recognition is important. But rewards don’t necessarily need to involve money. In fact, both public and private recognition are often rated more highly. Employees don’t just want to feel directly recognised; they also want to feel as though they have a future with the organisation and that they will continue to develop their career. What’s more, while 24% of employees found recognition from their CEO the best, 28% found recognition from their direct managers preferable.

Communicate with your employees through bi-weekly meetings

Regular one-on-one meetings, even quick stand-up meetings to check in, are a great way to tell your employees what they’re doing correctly and to get any feedback on what managers may be doing wrong. Many companies are blindsided by employees who appear to leave suddenly, when the departure really wasn’t sudden at all. The employee was simply never given the opportunity to directly address their concerns. When given a chance, most employees will be straightforward about their own goals with the organisation and what the organisation could be doing to better serve them.

Training and development opportunities

Employees today are not loyal to their companies; they are loyal to their careers. If they feel as though their careers aren’t advancing at the rate they expected, they’re more likely to jump ship. The solution is to offer a steady stream of training and development opportunities. Employees want to be able to do their jobs well; this gives your top-performing employees their time to shine.

Training and development directly benefit the organisation itself. As employees become more effective, they become more efficient at their tasks and more capable of operating autonomously. Though the company may need to invest directly in these training and development opportunities, they will ultimately achieve a substantial return on their investment.

Employees may also be given the opportunity to engage in transfer of learning, through which skills are diversified and employees are able to cross-train in different fields. Employees who are able to train in multiple fields are far more likely to be effective, as they are able to quickly adapt to the positions that the company requires. Transfer of learning is how some of the top CEOs are able to be so effective. It is also instrumental in grooming top-performing employees for management positions.

By improving your employee retention, not only can you reduce your hiring costs, but you can also boost your employee satisfaction by up to 22%. Though this isn’t an easy task, it can be achieved by building a company culture of employee recognition from the ground up. As a CEO, managing your employees is a balancing act; you need to be able to reward your outstanding performers while still managing the employees who are struggling. Mentorship and advisement can help. Through TEC, you can connect with other entrepreneurs and CEOs who are facing the same hurdles and developing their own employee management strategies. For more information, contact TEC today.

How to have difficult conversations with employees

In an interview with 200 executives, it was discovered that 53% of executives admitted to avoiding difficult conversations because they felt they didn’t have the training or the experience to handle them. Of those who avoided conversations, 97% did so because of the stress that it caused them — and 80% were concerned that the conversation would escalate into anger. The role of a CEO is no different; difficult conversations with employees are stressful. Unfortunately, they are still necessary.

Being able to tackle difficult situations in the workplace is a defining characteristic of a CEO. A true leader doesn’t just manage difficult conversations; they excel at turning difficult conversations towards a positive goal. But all of that takes experience and self-awareness. Here are some of the key factors to mastering difficult conversations with employees.

Set the right tone 

It’s important to start any conversation with a positive tone — otherwise, you can easily put your employee on the defensive. Handling a difficult conversation is very much about reducing the emotions that are in play. An emotional person will not be receptive to your feedback and your direction. There are many things that can influence the tone of a conversation:

  • Environment. Being ‘called into the office’ can be stressful in and of itself, and it’s important to understand that your employee is already going to have their guard up. Consider an alternative approach, such as walking up to your employee and asking them, ‘Would you mind having a talk with me in the conference room?’ For difficult conversations, neutral territory may be best.
  • Body language.It can be difficult to control your body language, especially if you yourself are upset or frustrated. As a CEO, your employees are going to take their cues from you; if you seem agitated and upset, they will be as well. Keep your body loose and relaxed, avoid any aggressive movements, and take some time to just breathe.
  • Mindset. What is your ultimate goal for this encounter? If it’s a combative one, then the encounter will probably be combative. Your mentality going into a difficult conversation should be to ask about the other person’s point of view and to work together to find a solution.
  • Opening. Your opening sentence should be inclusive rather than, ‘I need to talk to you about something,’ say ‘May we talk about something?

It’s important to align yourself with your employee so that you can work together during the conversation. While you may feel that the employee themselves is a roadblock or that they have caused a situation, it is still true that you and the employee are going to need to work together and resolve it. As a CEO, this bigger picture will override any smaller frustrations.

Be clear about the issue, but don’t oversimplify the problem

Effective leaders are able to convey complex topics in simple terms, but that in itself can be an art form. When describing an issue, CEOs need to achieve a balance between being concise and being clear. There can be a temptation to oversimplify an issue — either to get the conversation over with or to gloss over some of the negativity. Unfortunately, that gives the employee an incorrect perception of the issue. They may not treat it appropriately or even take it seriously. Eventually, this leads to frustration, as the leader perceives a problem that the employee still does not.

  • Don’t go into unnecessary detail. When describing an issue, discuss only the facts that are pertinent to the employee — and only give enough for the employee to both understand the issue and understand the desired outcome. The employee doesn’t need to know the intricacies of the situation. They need to know what to do to complete their work more effectively.
  • Ask questions to determine whether the employee fully understands the issue. What is clear to you may not necessarily be clear to the employee; after all, you have more data to work with regarding the situation than they do. Rather than assuming that the situation has been resolved at the end of the conversation, ask the employee questions — such as what they will do next to resolve the problem.

Communication is all about clarity, and clarity often requires brevity. Complex situations should be distilled into a few concise statements; this will ensure that the employee will understand the issue and be able to appropriately tackle it.

Prepare for the meeting, but do not rehearse

As a CEO, it’s likely that quite a lot of your life involves preparation. The more prepared you are, the better the outcome. Having difficult conversations is no different. Before you tackle a difficult conversation, you need to have as full an understanding of the situation as possible. You should understand the facts of the situation, be able to articulate why it is an issue, and have suggestions for moving forward.

But preparation is far different from rehearsal. When you’re concerned about a conversation, it would be easy to go over it many times in your head. But eventually you would end up developing a script — and scripting can be dangerous. When you operate from a script, you stop listening to the other person. You are no longer able to effectively communicate with them and answer their questions. Instead, you’ll find yourself going back to your script, again and again.

Avoiding rehearsal will make it easier for you to connect directly to your employee and to listen to them. Remember: your prior knowledge may not always be accurate, and you may not always have a full picture of the situation. Being open to your employee means that you can be open to changing your preconceptions and open to solutions that may differ from the ones that you had previously devised.

Know your objectives, stay positive and future focused

It’s easy to get derailed through the course of a conversation, especially a difficult or defensive one. This may involve becoming bogged down in arguing details rather than looking at the bigger picture. Rather than seeking to position themselves at an indefensible point (such as whether or not a project was delivered late), defensive employees may begin to argue finer points (such as who was responsible for delivering a specific part of the project late).

This can be avoided by remaining positive, staying on track, and focusing on the future. It’s always possible to argue what has happened in the past; it is less possible to argue about what needs to happen going forward. Practically speaking, the major concern is not who was guilty or culpable; it’s being assured that the situation will not occur again.

Regardless of the content of the discussion, it must always end with a clear, concise goal for the future. This is what gives your employee something to focus on moving forward.

Master the art of conversation

As a leader, you have to be able to tackle difficult conversations head-on. Developing this talent will serve you well throughout your career, and will lead to better business outcomes throughout your organisation.

It can be difficult to face frustrated or aggressive employees, especially when you are perceived as opposition rather than help. Luckily, you’re not alone. TEC’s network of experienced, knowledgeable CEOs can help give you tips that have served them well throughout their tenure, developing your social skills and building up your network. Contact TEC today to find out more.

4 Insights into what great CEOs do differently

When less-than-optimal leadership costs businesses as much as 7% of total sales each year — what’s the difference between a good CEO and a great CEO? A good CEO is an important part of any successful business. A great CEO, on the other hand, doesn’t just lead — they inspire and contribute to an impactful business.

Here are the four key traits in particular that separate the good CEOs from the great ones. 87% of professional leaders, who either become or aspire to one day to become a CEO, deliberately develop the following four qualities. They may seem simple, but the key lies in the consistency of application that delivers the best results time and again.

1. Great CEOs make decisions with conviction

A great CEO understands that more often than not, it’s not about making the best decision possible — it’s about being decisive with conviction. It’s less about making the perfect decision and more about making decisions when they’re needed and acting without doubt.

A common trait among CEOs with the highest IQ is that they often struggle with making fast decisions as they’re much more likely to weigh the pros and cons of every situation. This leads to indecision and ambiguity, which invariably creates a bottleneck.

Great CEOs know that the expectation of ‘perfect information’ is an unrealistic one on the best of days; you need to make decisions quickly with conviction. If any signs of doubt are exhibited, employees will quickly start to lose faith in their leaders.

2. Great CEOs know how to measure impact

Regardless of the business you’re running or even in the industry you’re operating in, success more often than not comes down to your ability to deliver results. A great CEO never focuses too much on their vision without understanding the precise impact of that vision and which metrics will ultimately be used to measure its success.

To that end, it should come as no surprise that CEOs who are deftly able to engage their stakeholders’ needs are 75% more successful in their role than those who aren’t.

To be a great CEO, you need to be aware of not just the impact of what you want delivered — but also the impact you’re making when you deliver the results or engage with the people who have a stake in the game.

This idea even plays a role in how you interact with people on a daily basis. Remember that employees will always magnify your reactions. If you grimace when someone is telling you their ‘next big idea’, they might immediately think you hate it — or worse, think they’re being fired.

Along the same lines, good CEOs will allow employees to vote in the direction of the company. Great CEOs will allow them to have a true voice in the matter, albeit with the understanding that the consensus-driven decision is not necessarily the one that will be made. Knowing how to measure impact — in this case, the difference between listening to the input of employees because you’re afraid of being disliked versus making an unpopular move because you know it’s the best one — is something you’ll need to focus on if you want to move up to ‘great CEO’ status.

3. Great CEOs adapt proactively

Everything about your business is changing regularly — from the marketplace you’re trying to serve to your industry to your organisation at a basic level. CEOs who are able to adapt to changing times and evolving needs are roughly 6.7 times more likely to succeed than those who do not.

For a great CEO, adapting proactively is less about being able to successfully handle today’s challenges and more about dividing your attention between short and long-term thinking. Devoting as much of your time as possible to thinking about the long-term direction of things makes it easier for you to not only recognise signs of change and mitigate risks ahead of time, but it also creates a business that operates with a growth mindset as well.

4. Great CEOs deliver reliably

Good CEOs make promises. Great CEOs keep them.

To be a great CEO, you need to demonstrate results. This means that you need to show you cannot only recognise what needs to be done to move a business forward, but actually do it. It should come as no surprise that CEO candidates who are twice as likely to deliver results than average are much more likely to actually be picked for that role.

To get better at this, learn how to set realistic expectations upfront. Focus on establishing business management systems including dashboards, accountability, performance monitoring, and more. All of this allows you to build a much more stable bridge between where you are today and what you promised you would do tomorrow.

One of the major reasons that CEOs sometimes don’t deliver expected results is because they don’t have the tools in place when they need them the most. In fact, 60% of CEOs make the rookie mistake of not having the right team in place quickly enough. Words are cheap — actions are more expensive. From the business management solutions you employ to the teams you surround yourself with, all of this helps you deliver what you need, when you need it, no exceptions.

From good to great

The fact of the matter is that the gap between a good CEO and a great one is often created less as a result of any one major move and more because of a series of small ones. Knowing how to make decisions with conviction, knowing how to measure the impact of actions both large and small, being able to adapt to a naturally fluid environment, and knowing how to deliver what you promised are all major leadership traits that you should be focused on.

If you’d like to find out more information about the major qualities of a great CEO, or if you’d like to learn more about similar leadership insight topics, please don’t hesitate to contact us today. 

 

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