Motivating Your Team. From the Valley of Despair to High Performance. What can we learn?

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1 Motivating Your Team From the Valley of Despair to High Performance What can we learn?

2 Agenda Defining Awful My Useless Paradigms Where to Start MBWA? No, it s MBWAALALAL Opportunity #1: Building Trust Opportunity #2: Whose Riding on YOUR Bus? Opportunity #3: Catbert vs. Real HR Leadership Opportunity #4: The Simple Compelling Vision Opportunity #5: Communicate! Engage! What have I figured out? Questions 2

3 From the Sunny South to Three Facilities - GM/HBC 550,000 Sq. Ft. 4.1 million units per week 606 associates 738 Stores - Seasonal 280,000 Sq. Ft. Up to 60,000 units per week 25 full time associates - Pharmacy 450,000 Sq. Ft. 3

4 From the Sunny South to 4

5 From the Sunny South to 5

6 From the Sunny South to 6

7 From the Sunny South to 7

8 From the Sunny South to 8

9 From the Sunny South to 9

10 From the Sunny South to 10

11 From the Sunny South to 11

12 From the Sunny South to 12

13 From the Sunny South to 13

14 From the Sunny South to 14

15 From the Sunny South to 15

16 From the Sunny South to 16

17 From the Sunny South to 17

18 From the Sunny South to 18

19 Defining Awful January 7, 2002: OMG!! - Pick a category it was bad Sanitation Safety Accuracy Productivity Damages On Time Delivery Morale / Local Reputation Financials - Temporaries - Wednesday beatings and daily bleedings 19

20 From the Sunny South to But, there was some good news! 20

21 From the Sunny South to Things couldn t get worse from here. We were able to try stuff. 21

22 My Useless Paradigms So what s the problem with a little overtime? People will simply believe and trust me The team is on board they know what to do Our associates will help the new hires we bring in HR will help us get to a better place All that matters is the future. The past is the past. I can turn everyone around here. 22

23 Blocking, Tackling... and Begging Basic processes Safety and Sanitation - There is no reason we can t have the safest, cleanest distribution facility in all of Ahold USA. Norm Haberl End of Day On Time Deliveries MHE Working Pick to Light Retention Associate Engagement and Respect Base Pay and Incentives 23

24 MBWAALALAL MBWA 24

25 MBWAALALAL MBWA Management by Walking Around 25

26 MBWAALALAL MBWA Management by Walking Around But what is MBWAALALAL? 26

27 MBWAALALAL MBWA Management by Walking Around and Listening, and Listening, and Listening 27

28 MBWAALALAL MBWA Management by Walking Around and Listening, and Listening, and Listening Many versions of the truth, but only one VISION 28

29 Opportunity #1: Building Trust Walk and Listen and pitch in Articulate a sense of direction Ask for help and ideas suggest ownership of the issues resides with our associates Call out positive change, reinforce hope Admit mistakes and struggles Commit to ongoing communications Address associate concerns timely Empathy (remove your title) Be genuine and humble 29

30 Opportunity #1: Building Trust What s important to your team? - Security - Viability - Safety - Leadership who cares personally - Participation - Understanding of the goals/knowing what s going on - Recognition - Responsiveness to issues and concerns 30

31 Opportunity #1: Building Trust Fit no stereotypes. The situation dictates which approach best accomplishes the team s mission. Sometimes speed to market is more important than total quality. Sometimes an unapologetic directive is more appropriate than a participatory discussion. Some situations require leaders to hover closely; others require long, loose leashes. Leaders honor their core values, but they are flexible in how they execute them. They understand that management techniques are not magic mantras but simply tools to be reached for at the right times. 31

32 Opportunity #1: Building Trust What was I thinking all along? - This is a bigger mess than I thought - Will the company stomach the situation much longer? - How do we prevent intervention by third parties? - There are so many things to fix where do I begin? - I can t do this by myself - I am worried. I m not sure what to do. - When the heck are the Bills gonna be back in the playoffs? 32

33 Opportunity #1: Building Trust Amount of Overtime Uncomfortable With 15% 14% 11% 8% 7%

34 Opportunity #1: Building Trust Top 5 Things You LIKE About ASC 64% 50% 50% 10% 7% Benefits People 4-Day Week Pay Personal Time 34

35 Opportunity #1: Building Trust Top 5 Things That Would Make ASC Better 33% 25% 22% 15% 4% Better Base Pay Better Comm. Change Incentives Safety Issues Clean Warehouse 35

36 Opportunity #1: Building Trust 42% Top 5 Issues Respondents Would Like to Help Resolve 21% 22% 14% 13% Incentive Accuracy Training Safety Comm. & Productivity 36

37 Who s on YOUR Bus?

38 Opportunity #2: Who s on YOUR Bus? Who s on it? Are they really on it (or sabotaging it)? Who s missing from it? Cloning is bad. But lack of leadership, knowledge, and ability to create positive change is worse What s the strength you re looking for? Who is modeling your vision? Who s not? Don t wait too long to purge the non-believers Lean on and appreciate the believers 38

39 Opportunity #2: Who s on YOUR Bus? Checkpoint: Do you have the right mix of leaders to achieve your Vision? Do some of your leaders have blind spots? And can they overcome them? Who gets it -- and all they need are some opportunities to show it? Are you waiting too long to make changes? 39

40 From Catbert to Real HR Leadership 40

41 Opportunity #3: HR Leadership Honoring Commitments Handbook Aloof Staffing Lack of Urgency Span of Control No Associate Advocacy It s a MAD, MAD, MAD, MAD World! 41

42 Opportunity #3: HR Leadership See Opportunity #1 Back to the Bus Who is on it? Partners or Pains in the? 50 Interviews Responding to our Associates Resolving Issues Management Development Healthy Conflict Structure and Guidelines Setting Expectations 42

43 Opportunity #4: Create a Simple, COMPELLING Vision 43

44 Key #4: Create the SIMPLE, COMPELLING Vision Safe & Sanitary A S C Accurate Caring 44

45 Our Importance Safe & Sanitary A S C Accurate Caring As the single provider of HBC & GM services to Ahold USA stores, we are relied on to: - Deliver the right product 45

46 Our Importance Safe & Sanitary A S C Accurate Caring As the single provider of HBC & GM services to Ahold USA stores, we are relied on to: - Deliver the right product - Deliver to the right store 46

47 Our Importance Safe & Sanitary A S C Accurate Caring As the single provider of HBC & GM services to Ahold USA stores, we are relied on to: - Deliver the right product - Deliver to the right store - Deliver at the right time 47

48 Our Importance Safe & Sanitary A S C Accurate Caring As the single provider of HBC & GM services to Ahold USA stores, we are relied on to: - Deliver the right product - Deliver to the right store - Deliver at the right time - Deliver in the right condition 48

49 Our Importance Safe & Sanitary A S C Accurate Caring As the single provider of HBC & GM services to Ahold USA stores, we are relied on to: - Deliver the right product - Deliver to the right store - Deliver at the right time - Deliver in the right condition...at the LOWEST possible cost! 49

50 Our Importance Safe & Sanitary A S C Accurate Caring RIGHT Product Store Time Condition Cost 50

51 Your Importance Receive Accurately Put Away Accurately Replenish Accurately Select Accurately Stack Accurately Load Accurately Deliver Accurately Respect the Product Right Product Right Store Right Time Right Condition 51

52 Your Importance Safe & Sanitary A S C Accurate Caring Receive Accurately and Productively Put Away Accurately and Productively Replenish Accurately and Productively Select Accurately and Productively Stack Accurately and Productively Load Accurately and Productively Deliver Accurately and Productively At the Lowest Possible Cost! - Be Safe - Be Sanitary 52

53 Key #4: Create the SIMPLE, COMPELLING Vision 53

54 Key #4: Create the SIMPLE, COMPELLING Vision 54

55 55

56 Opportunity #5: Communicate! Engage! Recognize! Quarterly Meetings Safety Dock Talks Safety Meals Safety Traffic Light Sample Sales Lean Team Meetings Productivity/Shift Progress Holiday Meals Veteran s Care Packages Open Door Kudos Thank You Cards STOP Observations Years of Service Perfect Attendance Lean Teams Lead Associates Health Fair 56

57 My Top Learnings Get the right leaders on the BUS - You can t do any of this by yourself Listen to what your associates are telling you (Address their issues and they ll exceeds your expectations) Confront their role in current problems and define ways they can solve them Deliver -- and repeat often -- a simple, compelling Vision... and a sense of urgency, too Communicate progress real results! Fill the void of information with truth Recognize and Appreciate 57

58 My Top Learnings Drive change through associate involvement don t fear giving up control Respond to associate concerns timely Nurture the healthy conflicts with HR and leverage their strengths One convert is equal to four wastes of time GET OUT THERE (where the real world is) 58

59 Key Takeaways There is no secret ingredient. Kung Foo Panda 59