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Your employer brand

Leadership-driven employer

I am a reformed marketing guy, but I remain passionate about brands. Many people like me who grew up in “high image” categories like tobacco, liquor or perfume shied away from considering the functional benefit of what we sold. After all, who wants to remind people of their addictions? Instead, we focused on the emotional reasons why people would choose our kind of tequila over the Bad Guys’ product.

My former boss, Corky Hall of Stellus Consulting, calls brands “anti-pricing.” If you have not created a brand that differentiates your offering from competition, if you are stuck in a commoditized world, creating demand might come down to lowering your price.

As the science of marketing won favor, as digital A/B testing came to the fore, the analog world of brands receded. Over the past year, I have had at least a half-dozen conversations with brand strategists, bemoaning how difficult business has become. Chief Marketing Officers have less time for them. I hold out hope for these strategists, and for the future of brands, but only if they look in unlikely places. Brands are no longer the exclusive domain of marketing. Instead, I believe CEOs and CHROs are where the brand conversations are taking place.

Historically, when you considered your brand, it was the reputation or relationship that your business had with customers or consumers. Under the umbrella of your brand were all the touch points you had with customers. Communications, packaging, website, sales calls, user interface, even billing are stimuli that define the relationship you have with your customer. These remain part of the mix, but the circle of stakeholders has expanded beyond customers. Now we think of shareholders, communities served and employees.

At the heart of a brand strategy are:
  • (1) an insight into what drives stakeholders to act in a desired way,
  • (2) a brand promise that offers how the brand makes people feel and
  • (3) an essence that distills the brand into the few qualities that make the promise believable.
So, if you are an NBA franchise, you might realize that many of your season ticket holders are businesses that entertain clients and prospects, and that the in-arena experience is a reflection on the ticket holder’s business. That you promise a ticket holder to be part of what is happening in their community. And that you offer an event that is more intimate than other pro sports, that is part of a night on the town and that creates and affiliation between you and other fans. You build your marketing plan around ways to deliver the feeling of being part of what’s happening in your community.

With this as background, what if we turn our thinking about brands towards current or future employees? How do we retain them? How do we attract new people who bring desired competencies? How do we engage and align our current workforce? How do we want them to feel about the company, their colleagues and themselves for working there?

I have a friend who left 3M after more than a decade there. She has a passion for environmental issues. She has deep respect for the diversity of the 3M workforce and the collaboration that is critical to its reputation for innovation. But she believed that big innovations had slipped away. More troubling, the forever chemical PFOS that is a critical ingredient in Scotchgard had entered her town’s groundwater. She told me over lunch one day, “I realized I work for a chemical company!” In 2018, 3M paid a $850M settlement to the state of Minnesota. The immediate legal issue had been mitigated, but the damage to the brand, exacerbated by repeated reductions in force, remains.

In 2021, Yale’s graduating student body president, Khalil Green, wrote an open letter to prospective employers. Mr. Greene posited a handful of insights worth considering with your Gen Z employees, as you build your brand: They want diversity to be foundational, not something you are still building arguments about.
They want companies to take a stand and They are works in progress, not fluent in the social conventions of corporate America.
They want to be themselves, without being stifled on social media. They want to make an impact.

If your goal is to create a team of A-players who function well together, it’s time to consider your brand as an employer. Have you determined how your brand essence matches with how your workers think about themselves? Or whether what you promise leads workers to choose your company as their employer rather than other companies in your industry or in your area?

It‘s magic when a brand strategy works as well with your employees as it does with your customers. When this happens, you are able to use the same language, and the customer experience becomes the employee experience. But if your customers don’t look like your employees, your employer brand might be quite different from your market-facing brand. There is no reason to have a suboptimal employer brand just for the sake of economy.

Creating an employer brand can be done in the same way as your brand for your customers. Get an experienced brand strategist to lead the process from outside the organization (I’ll upset my friends in design or advertising businesses who provide brand strategy services by suggesting that you choose a consultant who does not have a specific end use for your brand in mind.) Seek input across the organization. Create an internal team to develop and activate the brand. Take advantage of key opinion leaders who can become internal brand ambassadors.

Once developed, the activation of an employer brand is critical. It is where strategy and culture often meet. And it is where a CEO or a Chief People Officer takes the lead. Here are four questions that need to be addressed as you put your employer brand strategy into action:
  • 1. Do you have a mission that gets people out of bed in the morning?
    This is what differentiates a job from a calling. A job provides a straightforward value equation of work for compensation. If your employee buys into a purpose you provide that transcends what they can do on their own, your relationship is cemented by something deeper than a paycheck. If not, they will be on the lookout for their next job.
  • 2. Do you have reinforcement mechanisms that make workers feel valued?
    If a worker feels like their contribution is insignificant, even if directed towards a glorious mission, they might not become engaged. If they understand why their work is important and if they receive feedback that indicates they have accomplished a level of mastery, they will find pride in playing their part.
  • 3. Do you share stories that explain your values?
    There is immense power in storytelling to internalize culture. Stories can be especially critical in connecting an organization’s past to the things it holds dear today. I worked in a company that gave out coveted awards named after legends of another era. At the annual sales meeting, a video of the past leader was presented, highlighting their personal achievements in a way that reinforced customer intimacy or innovation, qualities that were key to the company’s success. Not only did this put the corporate values in a personal light, but the continuity of past to present underscored the enduring quality of your values.
  • 4. Have you established means of collaboration that make people want to work with their colleagues, virtually or in person?
    Work can bring transcendence from a source other than providing a sense of meaning. Being part of something bigger requires a social element, sharing goals with others, learning from them, receiving their support and celebrating victories together. A feeling of community might very well be the best tool we have to motivate workers to return to the office. And Gallup has noted the correlation between having close friends at work and high levels of engagement. Create an office environment that encourages spontaneous interaction, quiet conversations and a marketplace of ideas, and see if your people respond with renewed interest in leaving WFH behind.
For some in the marketing world, giving brands high priority may seem like a relic from the analog era. For those who are concerned about the relationship between their business and the people who make it go, there are few things more important.

Executives discussing leadership strategies

It was the lead story in June 6th’s New York Times: “Historic Shift in Labor Force Favors Workers.” We are seeing a confluence of conditions that should cause new thinking in talent management.

Before the pandemic, the labor market was at full employment, as the economy continued its sustained growth, and the pool of workers between 20 and 64 started to shrink. In the past year. The Congressional Budget Office projects the growth in the labor pool for the rest of the decade to be 0.4% annually, half the rate of the past 20 years.

On top of these predictable trends, there are shockwaves caused by the pandemic. Middle and senior managers saw their wealth increase dramatically, reflected in equity and real estate value gains. And we learned a new way of working – at home, assisted by technology – which suits many lifestyles far better than a week in the office, daily commutes and frequent flying. These are causing highly paid employees to rethink whether or not they need to work.

Now, the vaccination level has surpassed 60% and businesses everywhere are planning the return to the office. The question is, are the employees willing to come back?

Part of employee reluctance is safety related. CHROs are working through protocols for mask-wearing and mandatory vaccination. This is a reasonable exercise in risk mitigation. But many employees will decide that they would just rather work from home, that WFH offers greater flexibility and that flexibility is becoming an entitlement.

I see companies heading for a reckoning, as they declare that they will be 100% office-based.

I’ve spoken to several companies that expect to get back to 100% office-based. Their rationales vary. A COO mentioned the investment in her company’s office space that she must see a return on. The President of a $20M business who personally has been coming into the office throughout the pandemic told me that he cannot be as productive at home and assumes that is the case for all of his workers. The CHRO of a $2B company said that they have a face-to-face culture.

Whatever the reason, these leaders have to be aware that a not insignificant part of their employees think differently. Employees recognize that the labor balance of power has shifted. They will find new places that provide them with the environment that fits the way they want to work, including an office at home.

The risk may be worth taking for companies that want to be “all in.” They will lose people, but they might find like-minded workers who will strengthen their culture. I just wonder if these leaders are taking a long-term view, whether they are anticipating the exodus of valued employees who want an at-home accommodation.

Those companies that opt to remain 100% work-from-home are also taking a gamble, unless they’ve determined that it is part of their cultural DNA. Without significant work-arounds, virtual offices face continuing challenges. Having facilitated strategy sessions on Zoom, I know how difficult it is to pull off brainstorming and other interactive group activities involving a dozen or more people. Building or maintaining peer relationships is also hard to do virtually; these happen through short, random meet-ups in hallways, lunch rooms, etc., not in scheduled 30 minute calls. The spontaneous connections where employees share what they are working on, build off of one another and create new innovations is one of the biggest casualties of the past year.

To me, a hybrid office model is a better choice. It treats employees like adults by offering them a critical lifestyle choice while underscoring the value of interaction among colleagues. It assumes that people can be as productive at home as they are in the office, that the time spent watering the garden or walking the dog is compensated by the lack of a commute or a later end to the workday.

Companies going hybrid may make the office mandatory Tuesday through Thursday, leaving the beginning and end of the week for individual work from home or virtual conferencing, if that is the employee’s choice. In some companies, even greater flexibility might be the rule; the office may become the place where people go when they will benefit from direct face-to-face interaction, not based on a calendar.

Decades worth of change in workplace dynamics happened in a matter of weeks in 2020. These dynamics won’t just revert back, because the boss says so. In a world where the employees hold an increasing amount of the power, corporate leaders are well served by listening to their wishes.

Executive leadership stories illustrating confidence,

My friend Don Berglund is a former CEO of a $55M health services organization. He now serves as an executive coach and an Executive Springboard mentor. When we spoke recently, Don talked about Jim Collin’s Tier 5 leadership, mixing humility and will to deliver great results. If will is hard to achieve, then Don will settle for competence. Either way, we are dealing with the magic of two sometimes contradictory forces that yield extraordinary results in combination.

Humility is not the first characteristic that comes to mind with strong leadership. But it is closely paired with confidence and being open to admit that you can still learn. The counterpoint comes when an organization recognizes signs of arrogance in a leader. Let me share some stories about arrogance and humility among new executives.

Jose
A few years ago, I had a conversation with Jose, an ex-Honeywell executive, who had recently joined a comparatively smaller firm, one with revenue of $2B. His assessment: the processes were far less rigorous than at Honeywell, and many of the managers’ skill sets were less developed.

Jose tried to raise the bar in his new organization, but he felt that going to Honeywell standards was a bridge too far. So, he attempted enhancements best described as “middle-of-the-road.” They failed, and so did Jose, leaving for another job after only a year.

Looking back, Jose identified several problems with his approach. First, some things might not have needed fixing at all. You might not buy a new Lexus if your 2012 Camry still runs well. Systems and skills had been designed for that organization, its size and complexity, its people and skills. Unless something is woefully out-of-date or unable to scale to a reasonable vision of the future, Jose had offered solutions to nonexistent problems.

The rationale behind his chosen solution caused a more fatal problem for him. Instead of adopting a system that he knew well, he determined that this organization did not have the skills to take that on. This condescension led him to compromise on an option, something not up to Honeywell standards, and something that nobody (including himself) was familiar with.

Let’s assume a new ERP was necessary to manage projected growth and complexity, or because the current system was not a 2012 Camry but a 2003 Kia. Is it possible that some version of a system Jose knew well would be a good choice for his company? That he could assume that employees had what it took to adopt to a new system? That an upgrade based on the current system wouldn’t work well for the organization?

Marcus
Marcus joined a $40M technology organization as COO/Integrator about a year ago. The CEO, a visionary, recognized his own blind spots in professional discipline, and he was looking for somebody to take his place within a year. Marcus, like Jose, had worked in a multi-billion-dollar global organization. His engineering credentials were strong, as was his leadership experience in a larger company.

In order to impress the CEO, Marcus spent much of his first six months on the job proving credentials that were not in doubt. He presented himself as the smartest person in the room. He dismissed current practices as outdated. He denigrated engineering managers who showed signs of uncertainty. He left relationships with rank-and-file employees to his reports.

When the project manager on a critical new innovation abruptly left the company, Marcus got hands-on. While he intended to act in a way that was direct and transparent, engineers, used to a level of air cover from their former boss, stumbled under his intimidation. Deadlines were missed. A cascade of failures followed, and Marcus left the organization in Month 9, without achieving the stated goal of having him become the next CEO.

Kate
Compare these stories to Kate, who left Nestle for a multinational environmental services company. At Nestle, she was in a groove, with over two decades of experience. It was a good assumption that Kate’s well-honed marketing skills would be superior to the prevailing standard in her new B2B environment. And, yes, she had confidence that she could adapt. But she set the tone early when she told her team, “I am coming from a stagnant industry with humility about the growth you’ve been able to achieve.”

In that simple declaration, Kate set herself up for success. Her team felt valued for their previous accomplishments. They recognized her willingness to learn from them. The fact that they could learn from her was obvious but implicit. Kate’s commitment to growing the business came through, as a reason for her significant career change.

Importantly, her actions supported her words. In one-on-one meetings, she probed how and why actions were taken, open to the possibility that her own choice of solution was not the only option. She paid attention to milestones to ensure that commitments were attained. Early on, she inserted her direction only if it seemed clear that she could offer a significant improvement. As time went on and her team gained traction under her light hand on the reins, Kate enacted a plan for top lieutenant to succeed her.

Kate’s direct reports felt respected, and they were open to her change agenda, because they believed it objectively weighed against their current best practices. Kate learned what worked and didn’t work in the organization, with minimal disruption. The only turnover on her team involved one senior manager whose resistance to any change began to be a disruption. Admittedly, she had fewer personal victories in her early months than Jose or Marcos, but the wins she shared with her team were impressive, and her track record led to a promotion to EVP within two years.

The need to prove yourself can lead to a reputation for arrogance, one of the greatest derailers of leaders. If your self-proclaimed higher standard doesn’t get successful results, you’ve demolished your credibility. Even if you succeed, you may have achieved little to gain followers.

Humble executives may not be seen as career self-promoters. And career progression can be dependent on taking credit when credit is due. But in the early months on a job, acknowledging that you do not have all the answers and demonstrating a willingness to learn are potent success strategies.

doing the math for leadership

You are faced with lots of competing options for your talent development budget. I dare you to find a better investment than entrusting Executive Springboard with leadership assimilation.

Let’s do the math.

Studies by the Harvard Business Review, Heidrick & Struggles, Gartner and the Corporate Leadership Council place the odds of a failed senior hire at somewhere between 40 and 60%. Failure rates are probably a mixed bag when you consider other ways leaders begin new roles — lower in promotions or reassignments, higher in mergers. We will conservatively use a probability of failure of 40%.

Let’s assume that a senior hire has a $250K salary and an annual bonus of $100K. And let’s assume that this leader lasts one year. What are the costs of a failed adventure?
  • Salary and bonus of $350K.
  • Benefits (insurance, vested 401K, housing/moving costs, etc.) and business-related expenses (T&E, computer, etc.) of at least $50K.
  • Severance package of 6 months of annual compensation, or $175K.
  • Replacement search of $100K.
We will exclude any soft costs associated with a failed hire (e.g., management time on searches and remedial action, lost customers, exiting employees) and put the sunk costs of this failed hire at $675K.

The expected value of a failed senior hire is 40% x $675K, or $270K.

Here is our track record: Well over 90% of the executives Executive Springboard mentors are still in place after 18 months. Let’s assume our failure rate were as high as 10%. By reducing the risk of failure from at least 40% to 10%, we decrease the expected value of failure from $270K to 10% of $675K, or $67.5K.

The improvement in expected value is $202.5K. The cost of an Executive Springboard engagement is $15K for eight months of onboarding, making the return on investment for using Executive Springboard 1350%. That’s $13.50 for every dollar invested. How many HR initiatives approach this ROI? And it is reasonable to argue that, by taking more aggressive positions in risk improvement or executive compensation, or by monetizing soft costs, the ROI would rise to over 2000%.

We attribute our success in improving executive retention to several factors:
  • Executives feeling valued by their employers’ investment in their development
  • A proprietary onboarding program accelerating impact and sustaining it long-term
  • Elite mentors sharing their wisdom as a legacy to the next generation of leaders
Over the past six months, we have innovated to improve your ROI even more. Like, how does an ROI of infinity sound? That happens when your investment is zero. And we have two ways for that to happen.
  • 1. Our success rate allows us to now offer a money-back guarantee. If your recruited, promoted or reassigned executive leaves for reasons other than a reorganization, reduction in force or change in ownership during our 8-month engagement, we will refund your investment.
  • 2. We also offer a zero-cost offer for our services. Let us recommend one of our 15 boutique recruiting partners for your next executive search. The recruiter will integrate Executive Springboard’s onboarding with its placement for the cost of the search alone.
Getting your key employees off to a great start seems like a good thing to do. But our analysis suggests that investing in Executive Springboard’s onboarding mentoring is just about the best thing you can do.

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