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The Power of Habit – Part 3

Starbucks And The Habit Of Success—When Willpower Becomes Automatic:

Starbucks has succeeded in teaching life skills to its employees,  All new employees spent at least fifty hours in Starbucks classrooms, and dozens more at home with Starbucks’ workbooks and taking to the Starbucks mentors assigned to them.

At the core of that education is an intense focus on an all-important habit:  willpower.  Dozens of studies show that willpower is the single most important Keystone habit for individual success.  Self-discipline has a bigger effect on academic performance than does intellectual talent.  And the best way to strengthen willpower and give students a let up, studies indicate, is to make it into a habit.

Howard Behar, former president of Starbucks told the author, “We’re in the people business serving coffee.  We’re not in the coffee business serving people.  The solution Starbucks discovered, was turning self-discipline into an organization habit.

This enabled Starbucks to effectively successfully achieve its rapid expansion.

Willpower isn’t just a skill.  It’s a muscle, like muscles in your arms or legs, and it gets tired as it works harder, so there’s less power left over for other things.

What employees really needed were clear instructions about how to deal with inflection points.  So the company developed new training materials that spelled out routines for employees to use when they hit rough patches.  The manuals taught workers how to respond to specific cues, such as a screaming customer or a long line at a cash register.  Mangers drilled employees, role playing with them until the responses became automatic.  The company identified specific rewards—grateful customers, praise from a manager—that employees could look to as evidence of a job well done.

Starbucks taught their employees how to handle moments of adversity by giving them willpower habit loops.  This is how willpower becomes a habit: by choosing a certain behavior ahead of time, and then following that routine when an inflection point arrives.  In essence, they decided ahead of time how to react to a cue.  When the cue arrived, the routine occurred.

Studies have shown some people were able to create willpower habits relatively easily.  Others, however, struggled no matter how much training and support they received.  What was causing the difference?

When people are asked to do something that takes self-control, if they think they are doing it for personal reason—if they feel like it’s a choice or something they enjoy because it helps someone else—it’s much less taxing.  If they feel like they have no autonomy, if they are just following order, their willpower muscles get tired much faster.

For companies and organizations, this insight has enormous implication.  Simply giving employees a sense of agency—a feeling that they are in control, that they have genuine decision-making authority—can radically increase how much energy and focus they bring to their jobs.  Giving employees a sense of control improved how much self-discipline they brought to their jobs.  People want to be in control of their lives.

The Power Of A Crisis:

Crises are so valuable, in fact, that sometimes it’s worth stirring up a sense of looming catastrophe rather than letting it die down.  Good leaders seize crises to remake organization habits.  In fact, crisis are such valuable opportunities that a wise leader often prolongs a sense of emergency on purpose.

A company with dysfunctional habits can’t turn around simply because a leader orders it.  Rather, wise executives seek out moments of crisis—or create the perception of crisis—and cultivate the sense that something must change, until everyone is finally ready to overhaul the patterns they live with each day.  Rahm Emanuel stated,” You never want a serious crisis to go to waste.”

How to Recruit Top Talent

recruitingThe Smart, Easy Way to Recruit Top Talent

By Ray Silverstein

Recently, we discussed how the key to making successful hires is to target applicants who share your core values.

Today, we ask: why wait for those hires to come to you?

The smartest, easiest way to identify great potential employees is ‘24/7/365 recruiting.’ It’s simple: even when you’re not actively hiring, keep your eyes open for people who impress you, and get their contact information as you go.

It’s like you’re building your own major league baseball team. You’re always scouting at some level, and you keep a running roster of possibilities. So when it’s time to trade-up, you have a leg up.

24/7/365 recruiting comes down to being observant and building a few good habits, which include:

• Always carry business cards. When you meet an exceptional worker, give him a card and request his. Tell him upfront that he impressed you, and while you don’t have openings now, you’d like to explore future possibilities. At the very least, you’ll make someone’s day.

• Keep your eyes open at trade shows, chamber of commerce meetings, not-for-profit gatherings, etc. At these events, you have a golden opportunity to observe a potential candidate’s skills, work ethic, and communication style, without a formal interview or aptitude test.

• When calling on customers, take a peek at the sign-in book. It’s a goldmine. You just may find an experienced sales pro or two who already know your client or target market.

• Review your company website. Does it do a good job of reflecting your goals, culture, and core values? Make sure it does, because it will draw the kinds of candidates you seek to you.

• Research your market. Visit the websites of competitors or firms that resemble yours in terms of distribution or skill sets. Some companies list key employees on their sites. Use the wonders of LinkedIn to learn more about them.

• When you come across finished work that impresses you—say, a highly-effective website or print marketing piece—find out who did the work and take note. When you’re ready to start a project like that, you already have someone in mind for it.

I have a great example of the benefits of 24/7/365 recruiting. One of my peer group members, Joe, often grabs lunch at a sandwich shop near his company.

Over time, Joe became impressed by one of the shop clerks, Adam. Adam was very careful, and cordial, and took his job very seriously.

At the time, Joe was dissatisfied with the performance and attitude of one of his employees. He found himself wishing he could find more employees like Adam.

Then Joe realized that, instead of finding someone like Adam, he could hire the young man himself.

Out of courtesy, Joe asked the sandwich shop owner if he would mind if he approached Adam about a potential job. As it happened, the owner was all for it. The young man’s wife was pregnant and he knew Adam was ready and eager for a bigger job and paycheck.

So Joe was able to let his non-performer go and hire Adam without missing a beat. Thanks to his proactive recruiting, what could have been a setback turned into an opportunity.

And that’s how 24/7/365 recruiting puts you ahead of the curve.

Biography: Ray Silverstein is president of PRO, President’s Resource Organization, a network of entrepreneurial peer advisory groups in Phoenix and Chicago. His latest venture is Propelus, a specialized peer group for business advisors and achievers who want to achieve more. He is author of “The Best Secrets of Great Small Businesses,” and “The Small Business Survival Guide.” You can reach Ray at 1-800-818-0150 or ray@propres.com.

Are Your Habits Helping or Hurting Your Business?

a3feAre Your Habits Helping or Hurting Your Business?

By Ray Silverstein

Right now, many of us are wrestling with the personal habits we resolved to break or build back on January 1, like losing weight and giving up smoking. But what about your business habits? Have you given them any thought?

Like it or not, we are slave to our habits. According to research, a whopping 40% of our daily activities are habitual, not things we consciously choose to do. So chances are, if you put in an eight-hour workday, you’re spending three hours and twelve minutes of it on auto-pilot.

That’s 16 hours—two who eight-hour days—every single work week!

That can be good or bad, depending on your habits. If you have built good, productive habits (following up with prospects, monitoring sales activity), they’ll serve you well.

But if you’ve developed unproductive habits (checking emails continuously, tending to mundane tasks), your habits may be wasting prime work time.

Habits are extremely…well, habit-forming. Our brains are hardwired to create habits, according to Charles Duhigg, author of the fascinating book, The Power of Habit: Why We Do What We Do in Life and Business.

If you’re trying to grow your business, it’s important to understand what habits drive you, so you can either put them to work for you or change them. The first step? Identify them. Learn what they are.

According to Duhigg, a habit consists of a three-step loop:

  • The cue – the trigger that prompts your brain to begin a specific routine.
  • The routine – the activity itself, which may be physical, mental, or emotional.
  • The reward – the payoff for performing the routine, which gives your brain a reason to remember the habit.

Habits are powered by cravings. For example, I’ve developed a habit of craving a chocolate chip cookie at 2 a.m. My habit breaks down like this:

  • The cue – I wake up at 2 a.m.
  • The routine – I eat a chocolate chip cookie.
  • The reward – It tastes good. I feel good.

Most habits don’t go away by themselves. If I want to break my cookie habit, I can start by recognizing the cue for what it is when I wake up. I can change my routine, switching out a cookie for a piece of fruit. It still tastes good, though not as good, but now part of my reward is knowing that I’m eating something healthy instead of something less healthy.

It’s the same thing in business. For example, when we discussed habits in one of my PRO peer groups, one business owner—who had previously expressed concern that his close rates were dropping—had a moment of enlightenment.

He realized that he had fallen into a bad habit at sales presentations. Instead of engaging prospects in conversation, he would immediately launch into a features-and-benefits recitation.

It was driving people away.

His cue was getting in front of a prospect; his reward was sailing through the presentation. But a better reward would be closing more deals. Now, he is consciously changing his routine, engaging prospects in real conversation and making his presentations more organic.

So here’s my challenge to you: identify your good and bad business habits. Figure out what triggers them and how you can modify them to better serve your business.

In other words, make it a habit to pay attention to your habits.

 

Biography: Ray Silverstein is president of PRO, President’s Resource Organization, a network of entrepreneurial peer advisory groups in Phoenix and Chicago. His latest venture is PRO-preneur, a peer group with unique features for emerging businesses, solopreneurs and those who want to achieve more. He is author of “The Best Secrets of Great Small Businesses,” and “The Small Business Survival Guide.” You can reach Ray at 1-800-818-0150 or ray@propres.com.

Diffuse Workplace Conflict

conflict - handsHow to Diffuse Workplace Conflict and Create Consensus

By Ray Silverstein

I recently conducted a workshop on a highly emotional topic: humans in the workplace. After all, every human being—employees and bosses—shows up for work accompanied by their unique drives, triggers, and tendencies. All things considered, it’s a wonder we get any work done at all.

My message to the attendees may be of value to you, too. As your company leader, it’s your job to boost productivity, which means it’s also your job to diffuse workplace conflicts and create consensus, keeping your teamed focused on achieving your goals.

There are many theories on how to accomplish this. Based on what I’ve learned from my small business peer groups and my own experience as a CEO, I’ve identified up four main strategies for dealing with difficult people and creating an emotionally-healthy, productive workplace. I’ve summarized these briefly below, and you can download my complete PowerPoint presentation at http://propres.com/difficult-people-ppt/.

Understand Yourself

Do you know what makes you tick? Do you know what ticks you off? The best managers are those who are aware of their emotions but not enslaved by them.

Good managers typically have a high Emotional Intelligence Quotient (EQ)—that is, a high level of self-awareness regarding their emotional reactions and the emotions of others. Self-awareness is the first step toward self-management, the conscious management of one’s behavior.

To raise your EQ, check out Emotional Intelligence 2.0 by Travis Bradberry and Jean Greaves.

Understand Others

Good managers also have good social awareness. They not only pick up on other people’s emotions but know why they act the way they do. More and more employers are using personality assessment programs to better understand how their employees think.

One program I like is the DiSC® personality assessment system. DiSC is based on a four-part model of human behavior: the Dominant, Influencing, Steady, and Compliant traits. The DiSC test measures patterns of behavior, and then creates a personality profile that reflects an employee’s strengths, weaknesses, and drives.

Use Your Understanding to Manage Behavior

The whole point of understanding your emotions is that it will allow you to manage your behavior consciously and positively, as opposed to reacting emotionally in the moment.

The whole point of understanding the emotions of others is that it will allow you to behave in a manner that will get the desired response from others. In the workplace, this often comes down to diffusing conflict and creating consensus among employees.

Remember the old adage about counting to 10 when you’re angry? Turns out, it’s right on target.

For more about managing behavior, read Dealing with People You Can’t Stand: How to Bring Out the Best in People at their Worst by Dr. Rick Brinkman and Dr. Rick Kirschner.

Use Your Understanding to Hire Wisely

You can also apply these principals to make more successful hires. Instead of hiring new employees on the basis of a resume, look for people whose values and communication styles are harmonious with your own. Do they hold themselves accountable? Will they “get” your company culture?

If you’re seriously interested in a candidate, you can use a personality assessment to see if they’d make a good match for the position and your company. By choosing the right people, you can proactively diffuse conflict before it happens and create consensus from the get-go. Which means you’ll have to do a little less of the other three strategies further down the road.

Biography: Ray Silverstein is president of PRO, President’s Resource Organization, a network of entrepreneurial peer advisory groups in Phoenix and Chicago. His latest venture is the University of Practical Business, a specialized resource for emerging businesses, solopreneurs and those who want to achieve more. He is author of “The Best Secrets of Great Small Businesses,” and “The Small Business Survival Guide.” You can reach Ray at 1-800-818-0150 or ray@propres.com.