trust

Are your newest employees your best innovators?

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By Graham Oxley, Digital Project Manager.

A few months ago, on my first day at Hot Spots Movement, I had one specific question on my mind that was particularly important to me: are they going to listen to my new ideas? Lots of smaller companies have a challenge innovating due to decision-making being driven by a select few, usually the founders, who can sometimes fail to embrace change. Research shows that start-ups are 9.4% less productive on average when the founder is also CEO[1]. So, starting a new job at a 10-person company with a single founder, you can see where my apprehension stemmed from.

Luckily for me and given what we do here, Hot Spots Movement recognises these challenges and in my first few weeks I have been set to work looking at existing processes, documents and marketing with the goal of thinking of ways to improve them. Why a brand-new person with no experience of the product or research? The answer is that I brought different advantages:

1. I had more time than anyone else. With projects already underway, aside from training and shadowing, I had spare time on my hands. I could take the burden of creative thinking off those who were in client meetings and delivering projects. I could set aside dedicated time for new ideas.

2. I had no biases or preconceptions: I had a blank slate in terms of how I thought we should represent ourselves, meaning I could be totally honest about my thoughts and think without restriction. I had no existing investment in current processes.

As I delved more into our research and read more about innovation, I began to discover that the challenges of innovating in an SME are not that different to those in a multi-national FTSE 100 company. There are a couple of key similarities:

1. Employees don’t have time to incubate. Everyone is busy these days and this is impacting the time we can spend simply thinking creatively about innovative ideas. Distracting technology and open-plan workspaces mean that we are dedicating less and less time to creative thinking.

2. Innovation inbreeding. This is the concept that the same group of people keep thinking of ideas and don’t, or can’t, look elsewhere for new ideas. In a small company this is unavoidable; if you only have 10 employees, you only have 10 brains thinking of new ideas and they quickly come to think in sync about certain things. In a larger company, this is usually by design as innovation is left to a specific ‘innovation team’ who themselves have the same challenges a small company of fewer brains and convergent thinking.

Whether you’re an organisation of 10 people or 110,000 people, the argument is definitely there to be made that your newest employees may be the best equipped to help with innovation. They arrive with new experiences, different perspectives and often have the most ‘free-time’ that they will have in their entire career at the business as they have yet to take on projects. In small companies, one person can have more impact – when I arrived into a team of 12 employees, the brain capacity increased by almost 10% overnight – and if you think about the number of new employees arriving into larger businesses, the aggregate effect is likely to be the same.

Finally, back to my earlier question, did they listen to my new ideas? Well, I have made some suggestions that have been taken well and you may see the outcomes in the near future.


[1] http://www.people.hbs.edu/rsadun/AreFounderCEOsGoodManagers.pdf

Avoiding Learned Helplessness

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JF

Last month I was lucky enough to watch a presentation by Professor Dan Cable of London Business School, talking about a concept called Learned Helplessness and how it is affecting performance at work. Learned Helplessness is a psychological theory initially developed by Martin Seligman in the 1960’s and can be seen in many different aspects of our daily lives. The theory states that in the face of aversive stimuli, which an organism is unable to escape from, the organism will eventually accept the loss of control and give up trying to avoid the pain.

We see this in real life, more so than we are potentially aware of. Weight loss programmes are a great example. Working as an ex-swimming coach I’ve seen dozens of people decide to lose weight and pick up a new exercise regime or diet expecting instant results. When these results don’t come immediately they give up and try a different one, and another and another, eventually reaching a point of learned helplessness where they accept that they can never lose weight and give up trying.

Another example occurred at the World Cup with the Spanish football team. Spain, a footballing giant and a favourite for many to lift the trophy, sacked their manager just two days before the beginning of the tournament. What resulted from this was an embarrassment for a proud footballing nation, Spain were knocked out, in the Round of 16, by minnows Russia. Now there are many factors at play, but one suggested was that many footballers (not just Spanish ones) are so dependent on their managers direction that they’re unable to think for themselves. The Spanish team had five world cup winners in their midst, almost 60 top-tier domestic titles between them all and combined almost 950 international caps. These professionals had the experience to play with any manager, no matter who they were, yet they felt helpless to think for themselves.

So, as a professional, why is this important for you? Well there’s evidence to suggest that many employers are inadvertently creating an environment of Learned Helplessness. Employees are put to task doing mundane repetitive jobs and they lose the ability to engage their brain’s “seeking system” which we use to explore our environment and most importantly experiment and learn new things. And it’s not just repetitive tasks that can foster Learned Helplessness. Many organisations have a culture of “zero-tolerance” to failure. It’s long been known that when workers feel anxious or afraid they no longer receive the physiological reward for being creative or curious, meaning organisations are missing out on those innovative ideas that could make all the difference.

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But what can you do about it? How can you ensure your employees are constantly looking to innovate, be creative and learn new things and not in a state of Learned Helplessness? Well through our work here at Hot Spots Movement, there are a couple of ways which we find to be extremely effective in encouraging innovation:

  1. Ensure Psychological Safety

A common cause of Learned Helplessness in the workplace is a fear of the repercussions of failure and a perception that it is unwise to challenge the status quo. People must feel able to try new things and potentially fail. Google’s approach to this is well documented, with 10% of their people’s time dedicated to working on high risk, potential high reward projects, where failure is seen as a perfectly acceptable outcome for pushing the boundary. Further to this, employees should be comfortable challenging the norm and challenging leaders (within reason) as well. Just because “we’ve always done it that way”, doesn’t mean that it’s the right way and you should be encouraging your people to ask “why?”

  1. Encourage an Appetite for Learning

We’ve been banging the drum on this point here at Hot Spots for a little while now. “Good Work” is work that allows you to learn new things. As Dan Cable says, you must ensure your employees’ “Seeking Systems” are engaged to ensure they don’t just go through the motions at work, feeling powerless to change course or experiment. Instead, organisations must create an environment in which people seek to learn new things and where you aid them in developing skills and requirements for the future, not just the now.

  1. Demonstrate results

Finally, Learned Helplessness can easily result if people speak up about a new idea only to have it fall on deaf ears. If you really want your employees to be proactive, take on new challenges and elevate performance, then you need to visibly act on their suggestions or, at the very least, acknowledge the idea and explain what will happen next. It only takes a couple of instances of an employee’s idea being disregarded before Learned Helplessness sets in.

So, what’s the key message for you and your team? Consider the dynamic in your organisation: are people proactive in tackling challenges and crafting a way forward? Or is there a sense of inertia, suggesting a culture of Learned Helplessness? Spot this early and start making the small changes that enable your people to feel back in control.

If you’d like to find out more about how to prevent Learned Helplessness and how you can create a culture of learning and innovation within your organisation, then please don’t hesitate to reach out at john@hotspotsmovement.com

The End of Globalisation? How Global Companies Can Reverse That Trend

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4a5e4-6a019affbb02b7970b019affc09e79970d-piOne of the most interesting articles I’ve read recently was a well thought out piece in The Economist on the retreat of the global company, which explores the idea that multinationals are decreasing in importance, with falling profits and ROEs causing sales to grow at a slower rate than domestic companies.

The article also points out that multinationals are now seen as agents of inequality, with the rise of protectionism providing one reason why the global operating model is under pressure. Also, the data show that nearly one in two of the general population agree that free trade agreements hurt a country’s workers, while 72 percent favour government protection of jobs and local industries, even if it means a slower-growth economy.

It’s clear that over the past few years, some, even high-profile, multinationals have contributed to the deteriorating image of globalisation. In fact, they have tended to let it down due to the market-driven and short term arbitrage of procuring resources where they are cheapest here and now and due to their aggressive approach to tax minimisation.

Other than the obvious and hugely worrying protectionist trend, the current retreat towards a more regional or even local approach seems to me to have a lot to do with people seeking trustworthy institutions to believe in and identify with. As neither countries and their governments nor regional supranational institutions such as the EU are fulfilling this role, there is scope for businesses to fill this void: an opportunity – and a responsibility. According to the latest Edelman Trust Barometer, those who
 are uncertain about whether the system is working for them tend to trust business more than government.

Further good news is that three out of four general population respondents from Edelman’s Trust Barometer agree that ‘a company can take actions that both increase profits and improve the economic and social conditions in the community where it operates’. Thanks to their size, reach and financial might, multinational companies have the potential to play a major, positive role, provided they appreciate what it is that makes people trust them.

One way in which multinational companies can build trust is in easing people’s anxiety about their future, particularly in terms of job losses and employability. Anxiety is mounting, and according to the Edelman Trust Barometer, these are the five key fears pertaining to job loss:

  • 60% Lack of training/skills
  • 60% Foreign competitors
  • 58% Immigrants who work for less
  • 55% Jobs moving to cheaper markets
  • 54% Automation

These are all fears that companies can address, and my guess is that if companies decided it is a strategic priority to help their people maintain or improve their employability, the rest of the fears would largely dissipate. What might this look like? It could be to build learning platforms that cater for a broad range of skills and a variety of learning preferences. This is is doable for huge companies – and a lot less for smaller, local companies.  Being proactive in helping staff reskill in the light of automation including when that means helping them become employable somewhere else is another example of what foresighted companies are already doing.

So let’s not write off global companies just yet – they can still decide to become a ‘business force for good’. As long as they make a conscious decision to do so.