Tuesday, April 30, 2024

HR Can Gain More Influence With This Communication Tweak

 


There have been innumerable discussions among HR executives about how to get a seat at the table (or just gain more influence generally). Compared to roles like heads of Finance, IT, or Sales, Human Resources leaders typically wield less political clout. That's partly structural; while HR's contributions are vital, they're often seen as less directly tied to immediate financial results, technological advancements, or market growth.

Making clear the linkages between people and financial returns is important, but there's another, and faster, way for HR leaders to increase their influence: change their communication style.

Over a million individuals have participated in the "What's Your Communication Style?" assessment. Recent data from this assessment reveal a substantial communication disconnect between HR and other departments such as Finance, IT, and Operations.

There are four primary styles of communication:

In HR, the prevalence of personal communicators stands at 37%, with functional communicators making up 25%. This means HR's language tends to emphasize emotions first and then processes.

Conversely, in Finance, 30% are intuitive, and another 30% are analytical, indicating a preference for data-driven, concise communication. Information Technology departments display similar preferences, with 35% intuitive and 28% analytical communicators.

The stark contrast between analytical and personal styles, as well as between intuitive and functional styles, cannot be overstated.

Consider an HR leader who is a personal communicator stating, "I'm concerned about how negatively our employees feel about our new return-to-office policy." For a CFO who is an analytical communicator, this sentence, although simple, might be challenging due to the emotional content—words like "concerned," "feel," and "negatively" figure prominently in that sentence.

Analytical communicators often distrust statements that lack solid data or precise details. Emotional expressions such as "concerned," "feel," and "negatively" can raise doubts for them.

Ironically, HR's strength lies in its ability to evaluate and express the emotional aspects of organizational life. While many companies claim, "People are our most important asset," few leadership members effectively communicate about the emotional state of these valued individuals. But unless HR leaders refine their ability to translate emotional insights into language that resonates with CEOs, CFOs, and CIOs, HR conferences might continue to repeat talks on "securing a seat at the table" for years to come.

Words That Matter

Here are two actionable suggestions to help you convert your insights into language that resonates with analytical or intuitive executives:

1. When preparing to interact with executives from different departments, consider replacing some emotional terms with data or figures. Commonly used emotional words by HR professionals include "worried," "stressed," "unhappy," and others. While these sentiments are valid, they should be communicated in ways that an analytical listener can more readily understand. For instance, are there statistics to back up our concerns about employee stress? Have error rates or turnover increased? Is there evidence of reduced productivity?

2. After strengthening your message with data, aim to deliver your insights concisely. Although HR tends to have more functional communicators, who prefer a detailed, step-by-step communication style, intuitive colleagues will prefer a more direct approach.

Translating A Personal Message Into An Analytical Style

Here's an example of how an HR leader with a personal communication style might discuss employee dissatisfaction with company benefits:

"I've spoken with many of our team members recently, and it's clear they're feeling quite disappointed about our current benefits package. It seems to be affecting their overall engagement and morale. We've always valued making sure our employees feel supported and cared for, so it's disheartening to hear they are unhappy. We need to take these feelings seriously and make some changes to our offerings."

To adapt this message for an analytical communication style, the HR leader would focus on specific data and facts to present the issue more convincingly:

"Recent data from our internal survey show a 42% employee dissatisfaction rate with the current benefits package, a 15% increase from last year. This dissatisfaction correlates with a 10% increase in employee turnover. With turnover costs equaling 1.5 times the employee's salary, this dissatisfaction with our benefits package is costing us $12,000,000 per year. So we need to make some changes to our benefits package."

While there is nothing intrinsically problematic with HR's typical communication style, or with being predominantly personal or functional, those who wish to enhance their influence should consider adapting their style. If power within your organization is held by those who are analytical or intuitive, it becomes crucial to translate your message into terms they'll understand.

There have been innumerable discussions among HR executives about how to get a seat at the table (or just gain more influence generally). Compared to roles like heads of Finance, IT, or Sales, Human Resources leaders typically wield less political clout. That's partly structural; while HR's contributions are vital, they're often seen as less directly tied to immediate financial results, technological advancements, or market growth.

Making clear the linkages between people and financial returns is important, but there's another, and faster, way for HR leaders to increase their influence: change their communication style.

Over a million individuals have participated in the "What's Your Communication Style?" assessment. Recent data from this assessment reveal a substantial communication disconnect between HR and other departments such as Finance, IT, and Operations.

There are four primary styles of communication:

In HR, the prevalence of personal communicators stands at 37%, with functional communicators making up 25%. This means HR's language tends to emphasize emotions first and then processes.

Conversely, in Finance, 30% are intuitive, and another 30% are analytical, indicating a preference for data-driven, concise communication. Information Technology departments display similar preferences, with 35% intuitive and 28% analytical communicators.

The stark contrast between analytical and personal styles, as well as between intuitive and functional styles, cannot be overstated.

Consider an HR leader who is a personal communicator stating, "I'm concerned about how negatively our employees feel about our new return-to-office policy." For a CFO who is an analytical communicator, this sentence, although simple, might be challenging due to the emotional content—words like "concerned," "feel," and "negatively" figure prominently in that sentence.

Analytical communicators often distrust statements that lack solid data or precise details. Emotional expressions such as "concerned," "feel," and "negatively" can raise doubts for them.

Ironically, HR's strength lies in its ability to evaluate and express the emotional aspects of organizational life. While many companies claim, "People are our most important asset," few leadership members effectively communicate about the emotional state of these valued individuals. But unless HR leaders refine their ability to translate emotional insights into language that resonates with CEOs, CFOs, and CIOs, HR conferences might continue to repeat talks on "securing a seat at the table" for years to come.

Words That Matter

Here are two actionable suggestions to help you convert your insights into language that resonates with analytical or intuitive executives:

1. When preparing to interact with executives from different departments, consider replacing some emotional terms with data or figures. Commonly used emotional words by HR professionals include "worried," "stressed," "unhappy," and others. While these sentiments are valid, they should be communicated in ways that an analytical listener can more readily understand. For instance, are there statistics to back up our concerns about employee stress? Have error rates or turnover increased? Is there evidence of reduced productivity?

2. After strengthening your message with data, aim to deliver your insights concisely. Although HR tends to have more functional communicators, who prefer a detailed, step-by-step communication style, intuitive colleagues will prefer a more direct approach.

Translating A Personal Message Into An Analytical Style

Here's an example of how an HR leader with a personal communication style might discuss employee dissatisfaction with company benefits:

"I've spoken with many of our team members recently, and it's clear they're feeling quite disappointed about our current benefits package. It seems to be affecting their overall engagement and morale. We've always valued making sure our employees feel supported and cared for, so it's disheartening to hear they are unhappy. We need to take these feelings seriously and make some changes to our offerings."

To adapt this message for an analytical communication style, the HR leader would focus on specific data and facts to present the issue more convincingly:

"Recent data from our internal survey show a 42% employee dissatisfaction rate with the current benefits package, a 15% increase from last year. This dissatisfaction correlates with a 10% increase in employee turnover. With turnover costs equaling 1.5 times the employee's salary, this dissatisfaction with our benefits package is costing us $12,000,000 per year. So we need to make some changes to our benefits package."

While there is nothing intrinsically problematic with HR's typical communication style, or with being predominantly personal or functional, those who wish to enhance their influence should consider adapting their style. If power within your organization is held by those who are analytical or intuitive, it becomes crucial to translate your message into terms they'll understand.

Monday, April 29, 2024

Why Empathetic, Honest Leadership In The Workforce Is Crucial

 


The difference between organizations that retain people and those that are revolving doors is often the leadership.

Empathetic and honest leadership is crucial for retaining top talent. When leaders make an effort to understand their employees and prioritize transparency, that’s when they can truly engage and empower employees. When employees feel heard and believe the company has their back, they’ll be more likely to stay at a company for the long haul.

Given the many stressors people are facing these days, it’s arguably more important than ever that leaders be empathetic and honest so they can retain their best employees.

Without Empathetic And Honest Leadership, Businesses Are At Risk Of Hindered Growth

Empathy And Honesty: More Than Buzzwords

Empathy and honesty are terms frequently used in the business world, but it’s vital that leaders avoid treating them like buzzwords or as just line items on a corporate checklist.

Leaders must truly practice empathy and honesty, not just preach those terms. For instance, management can say that they “care about the well-being of every employee,” but if they make employees come to work while sick, they’re not actually exhibiting empathy. Or management can say that they “value honesty,” but if they constantly surprise employees with new rules and backtrack on their words, they’re not being honest.

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Leaders should self-reflect and see if they’ve actually been empathetic and honest with their team members. They should also consider asking their employees for anonymous feedback and getting outside perspectives from mentors and peers. A leader might discover that they’re not being as empathetic and honest as they think—but what is important is that once they have that knowledge, they take steps to fix it.

How To Nurture Empathetic, Honest Leadership

Leaders can take several steps to cultivate empathetic, honest leadership in themselves.

First, they need to prioritize leading by listening. When employees come to them with concerns, they should listen to them without judgment. Leaders should be willing to put themselves in employees’ shoes. Part of leading by listening is access. Leaders need to make it easy for employees to speak with them; employees shouldn’t have to jump through hurdles just to sit down with a member of the management team.

Then there’s transparency and vulnerability. Leaders must be prepared to share the whole story, even when a story does not reflect well on them. People aren’t perfect, and leaders are no exception. When leaders are willing to put their own struggles and mistakes out in the open, their team members will feel more comfortable doing the same. For example, at my company, it’s not uncommon for senior executives to start meetings by saying something along the lines of, “Hey team, I have XYZ going on, so I apologize if I’m not showing up at my best today.” When our leaders make such statements, employees know that they too can show vulnerability at work.

Speaking of emotions, leaders must recognize the emotional labor that comes with work. Every job comes with emotional labor, and employees are complex human beings who are juggling personal and professional lives. When leaders make it clear to employees that they recognize the emotional labor they’re expending, employees can feel more heard and seen. Recognition alone, of course, is not enough. Leaders should also provide resources and support (such as health insurance that covers therapy and ample paid time off) so that employees can cope with personal and professional challenges. At my company, for instance, one way we support our employees is by providing access to counselors and coaching services.

Finally, leaders need to empower decision-making at all levels. Ivory towers don’t work in business. Employees need leeway to make decisions within the scope of their roles. If they have to get the C-suite’s buy-in for a decision that can and should be made at the departmental level, they’ll eventually get frustrated. When leaders enable employees to make decisions within the parameters of their roles, they show not only that they trust employees but also that they empathize with employees’ desire to work efficiently and make an impact.


Saturday, April 20, 2024

 

Chinese businesswoman sticking notes on glass with colleague

Leadership is not just about managing resources or making decisions. It’s about inspiring change, driving innovation and unlocking the potential within each team member.

I often guide leaders from all industries to restructure the blueprint of their business through my innovation masterclasses that equip them with tools and frameworks to transform, grow and scale their business and ultimately achieve exponential results.

A large part of my clientele are companies in the finance sector. As we venture into the era of generative artificial intelligence (AI), especially in sectors like finance, the role of transformational leadership becomes ever more critical.

The Challenge Of Stagnation

In the world of finance, traditional systems and methods have long dominated, leading to a landscape where change is often met with resistance. The emergence of generative AI technologies promises a revolution in how financial institutions operate, offering unparalleled opportunities for efficiency, customer service and product innovation. Yet the adoption of such technologies is not without its challenges. Resistance to change, fear of the unknown and the pace of technological advancement can leave many organizations trailing in the wake of more agile competitors

The Transformational Leader’s Role

Transformational leaders play a pivotal role in guiding their organizations through the journey of technological adoption and innovation. They possess a unique blend of vision, passion and the ability to inspire, making them perfectly poised to lead their organizations through the challenges of adopting generative AI and other emerging technologies.

Visionary Guidance

The story of any significant innovation begins with a vision.

Take, for instance, the journey of transformation at JPMorgan Chase, a financial services firm that has harnessed generative AI to revolutionize its customer service operations. Leadership at the firm envisioned a future where customer inquiries were not merely responded to but anticipated, utilizing AI-driven insights to forecast and address customer needs proactively.

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This strategic foresight led to remarkable improvements in customer satisfaction and operational efficiency. JPMorgan Chase's initiatives, such as testing AI applications to generate earnings summaries for tracked companies and developing a helpdesk service that provides precise problem-solving steps, underscore the depth of this vision.

Achieving these outcomes required more than just the integration of new technologies; it necessitated a profound cultural transformation within the organization, fostering an environment that values and encourages innovation at every level.

Creating A Culture Of Innovation

Transformational leaders understand that innovation is not a solo sport. It thrives in a culture where ideas are freely shared, risks are taken and failures are viewed as stepping stones to success. By fostering an environment of trust and open communication, leaders can encourage their teams to experiment and explore new possibilities.

An example is Ant Financial (paywall), an affiliate company of the Chinese Alibaba Group Holding. Now known as Ant Group, they have adopted a fail-fast approach, quickly iterating on AI-driven financial products like their credit scoring system, Sesame Credit, and the wealth management platform Ant Fortune. These innovations have disrupted the market with highly personalized customer investment strategies and financial services. Ant Group's success with AI-driven personalization at scale demonstrates the power of a culture that embraces experimentation and rapid iteration.

Empowering Through Trust

Empowerment is a cornerstone of transformational leadership.

By trusting their teams to lead innovative projects, leaders not only boost morale but also unlock a wellspring of creativity and initiative. Consider the case of Citibank's approach to innovating in fraud detection with AI and machine learning technologies. By entrusting its teams, including junior analysts, with the autonomy to lead such critical projects, Citibank has not only fostered a culture of innovation and empowerment but also significantly enhanced various aspects of its operations. This empowerment strategy has led to substantial advancements in fraud detection, customer service and risk management.

Overcoming Challenges With Resilience And Adaptability

The path to innovation is fraught with obstacles, from technological hurdles to resistance within the organization. Transformational leaders shine in their ability to navigate these challenges with resilience and adaptability.

They see setbacks not as failures but as opportunities to learn and grow. This mindset is crucial in the fast-paced world of generative AI, where the landscape is constantly evolving.

DBS, based in Singapore, has led digital transformation in banking, overcoming challenges like integrating digital solutions, addressing skepticism and navigating regulatory hurdles with vision and leadership. Their digital overhaul introduced AI chatbots, blockchain transactions and big data analytics, enhancing customer service and operational efficiency. This journey underscores DBS's resilience and adaptability, making it a digital banking leader and an example for global financial institutions.

The Solution: Leading By Example

The real magic happens when leaders not only preach innovation but live it.

By actively engaging with new technologies, seeking out learning opportunities and demonstrating a willingness to take risks, leaders can set a powerful example for their teams.

This approach is epitomized by Westpac, under the leadership of David Walker, group chief technology officer. Westpac has embraced AI and digital technologies to improve and secure customer services, partnering with top AI companies to enhance its offerings, including conversational AI and banking-as-a-service platforms. This approach underscores Westpac's commitment to combining human-centered banking with the efficiencies of AI.

Conclusion: Lighting The Way Forward

As we stand on the brink of a new era in finance, driven by generative AI and other transformative technologies, the role of leadership has never been more critical.

Transformational leaders, with their vision, passion for innovation and ability to inspire, are uniquely equipped to guide their organizations through the challenges and opportunities of this digital revolution. By fostering a culture of innovation, empowering their teams and leading by example, they can unlock the full potential of their organizations, driving growth, efficiency and success in an increasingly competitive landscape.

In the end, the journey of transformation is not just about adopting new technologies but about reimagining what is possible. It’s about lighting the spark of innovation within each team member and watching as it ignites into a blaze that propels the organization forward. For those willing to lead this charge, the possibilities are endless, and the rewards are vast. Let us be those leaders, and let us start today.