How to Grow Human Capital During Hard Times

 

Without a doubt, the most important capital right now remains human capital. Organizations that will thrive after the pandemic are taking actions now to improve their future stock of this form of capital that delivers over 90% of organizational results.

As I write this, medical and financial fears abound. Much of the U.S. (and the world) is reeling from either the direct effects of the corona virus pandemic or the restrictive orders in many areas. Coming into sight is another fear – of the long-term losses in our personal financial and national economic systems. What degree of financial security do individuals and families still have?

Businesses have been forced to close or have lost many of their customers. Local and state organizations may face substantial reductions in budget. Cash is in short supply, and the future is looking murky, at best.

Under these conditions, what actions should hard-pressed leaders take? Accept government grants and forgivable loans? Cut costs and reduce full-time staff? Motivate shareholder or customer loyalty? Maintain or acquire tangible assets like machines or upgraded factories?

The answer might surprise you.

But first…

What Is Human Capital?

Many people are surprised to hear that something called “human capital” even exists.

That’s because, in the U.S., we don’t always think of developing our people as an intrinsic, necessary part of growing our organizations or our economy. This attitude is left over from the Industrial Age, when manufacturing was the primary driver of results, success was based on your ability to build a better, faster and cheaper widget, and manufacturing employees were considered just another cog in the process.

Old ideas die hard. But if we look at the past thirty years, it’s clear that our most successful organizations — from Amazon to Apple, from NASA to Walmart to Pfizer— aren’t thriving because of their superior assembly lines, but rather because of their superior ideas.

And who is it that generates ideas?

People.

To Understand Human Capital — and How to Develop It — Look to the Military

It used to be that — just like in the private sector — the world’s military organizations were competing to amass equipment. If you wanted a dominant military, you needed to have more ships, more tanks, and more munitions than your adversaries.

But today, military equipment, like all other tangible capital, has become a commodity. It’s reasonably cheap, readily available and in great supply. That’s why it no longer signals superiority. That’s why the U.S. military now understands that physical capital is no longer a differentiator for the world’s militaries and that superiority today isn’t based on having more equipment; it’s based on having better trained people.

Look at the example of education.

Does the Military Have a Human Capital Strategy for Education?

For more than eighty years, the U.S. military has led the nation with its efforts to optimize its human capital systems, adopt novel human capital strategies, and use analytics to assess and improve its human capital performance.

In keeping with this, our military has a simple and effective strategy for education: It makes education and training available to all recruits, based on their talents and desire to learn.

How has this strategy benefited our nation?

The “American Century” was kicked off by both our country’s technological advances during World War II and by the gains in middle class education that allowed us to turn those advances into global business dominance.

But the military’s commitment to education didn’t end with armistice. Every year, our armed services operate the world’s largest educations system, where male and female Soldiers, Sailors, Airmen and Marines engage in formal professional development. And as the cost of private and public colleges continue the skyrocket, the military’s training and education system, costing well over $30 billion per year, is free for service members and remains a major reason for enlisting in our all-volunteer military.

Does the United States Have a Human Capital Strategy for Education?

Yes. And it is also simple, though much less effective than the military’s. Our strategy allocates the quality and amount of education according to your zip code and family’s financial acumen. Facts are stubborn things and we need to own this one.

80-90% of our current high school students are qualified to earn either a college degree or a technical training certification. Yet many of them will not achieve that dream because it’s become unrealistically expensive.

How would things be different in this country if education were allocated based on your drive and desire to learn, not on line 42 (adjusted gross income) of your parents’ federal income tax return?

How much more would an educated and certified national population be able to contribute to our growth and resilience, during good times and bad?

I believe that our wealth and productivity would grow exponentially, along with the percentage of our citizenry that was vested in that growth. And perhaps the current pandemic will clear the way for developing bold new experiments such as student loan forgiveness, free virtual learning, even mechanisms for containing college costs to help us test that proposition.

Human Capital Will Light Our Way

Even before the corona virus pandemic, the United States was wrestling with major social issues such as inequality, the mismatch between workers skills and available jobs, apathy, alienation, and unnecessary displacement and despair. Too many, we’ve lost our way and we tend to fight over trivial issues, forgetting that long-term national success depends on perpetual strategic investments in national human capital.

The pandemic has laid bare, for those who choose to see, how impoverished our stores of both tangible and intangible capital had become. We’ve woken up to an understanding of how low our levels of not just medical supplies but also of leadership, truthfulness and problem-solving skills, have dipped.

Yet the pandemic has forced each of us — from business owners to employees, from policymakers to members of the public — to begin to develop our own human capital strategies. To ask: where, in these hard times, do we put our energy? Our creativity? Whatever money we command?

Do we compete to accumulate wipes and masks and tangible goods, confident in the individualized idea that “he who dies with the most toys wins”?

Or do we also support, help, train, educate and invest in each other — strengthening our families and work teams, sharing knowledge and know-how, coaching each other to higher levels of capability until this challenge begins to pass?

Our nation’s first responders and medics have already courageously answered this question.

Now it’s up to the rest of us to follow.

Let’s share experiences. Leave a comment below, send me an email, or find me on Twitter.

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How and Why to Ask For What You Want at Work

I still cringe when I think of the time I got my haircut during my teenage years. The hairdresser asked how I wanted it cut and I replied, “I don’t care. You choose.” In that moment, I gave away total control of how I looked to a complete stranger!

As a child, I never learned to clearly ask for what I wanted. I always said, “I don’t care” even when I did care. I didn’t want to rock the boat and create conflict, so I kept quiet instead of voicing my opinion or request.

Through lots of personal development work, I slowly improved in speaking up. In fact, I went a little overboard and became a touch demanding at times. Telling my mom, “I need you to do this by tomorrow” was probably not the best way to treat her! Over time, I’ve slowly learned when to speak up and when not to speak up.

What is Self-Advocating?

Though it often doesn’t come naturally, speaking up and self-advocating is a vital professional and personal skill. What is it? It’s the ability to say what we need, want and hope for in life and at work. It’s the capacity to ask questions humbly, and admit mistakes. It’s about standing up for yourself and others in the face of large or small injustices.

Why You Need to Speak Up at Work

Let’s talk about work. When you don’t self-advocate, your approach to your career is passive. You rely on your manager to know what is best for you, how you’d like to progress, and what factors and peer behaviors are impacting your work. But not all managers can keep track of exactly what’s going on in their team member’s day-to-day life, and zero managers can read minds. Without communicating what you want, and what is standing in your way, you are relying on the unknown to shape your career and life.

Much of my coaching focuses on speaking up and asking for what you want. And I don’t just mean asking for a raise or a new position. It can be small things too, like when a colleague does something that irritates you, or when a client asks for more than the contract stipulates. These are examples of speaking up for your own good, as well as the good of your team or organization.

But How Do You Self-Advocate?

So how do you do it? I asked Jezra Kaye, a public speaking coach who works with people to improve public speaking skills. Her company is called Speak Up for Success; she’s the perfect person to turn to for self-advocacy help! Here are her five steps for asking for what you want.

Asking For What You Want at Work: 5 Steps

1.    Know Your Value— What do you bring to your company or team that they would otherwise have to do without? What have you accomplished for them? Can you put a dollar figure on the clients you’ve won, or the time you’ve saved through good practices? Even intangibles like increasing team morale can sometimes be quantified (“Our team lost only one member last year; the other teams all lost two or more”).

2.    Do Your Research— What do others at your level, in your field, get paid? How fast have others in your company been promoted? Are you being fairly compensated (often, women and people of color are not)?  Should you be making more than others, because you supervise more people, manage more projects, or have special expertise?

3.    Develop Your Strategy— You know your manager! Are they best approached at 8 am on Monday morning? Over drinks on Thursday night? After a difficult project has wrapped? Should you make an appointment, or have a casual conversation? Do they need time to process, or pressure to decide? And WHAT is the argument that will win them over?

4.    Plan Your Speech— Don’t leave this important conversation to chance! Work out what you’re going to say, and then…

5.    Practice, Practice, PRACTICE Look, asking for what you want can make you uncomfortable. It can make all of us uncomfortable. The truth is, there is a very slim chance you will get what you want unless you ask. Follow these five steps and give it a shot.

Do you have a story about self-advocacy in your own life? Maybe a time where it made all the difference for you or a time that it could have?

Let’s share experiences. Leave a comment below, send us an email, or find us on Twitter.

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Listening: The Do’s and Don’ts and How To Master It

The human mouth plods along at 125 words per minute, while a neuron in the brain can fire about 200 times a second. No wonder our mind wanders when there’s so much time in between the words of a conversation. This is part of the reason we remember only 25 to 50% of what we hear.

Yet listening is an incredibly important skill for everyone—including leaders. Why? If you’re not listening at work, it’s easy to misinterpret a discussion as a decision. You may underestimate the importance of objections and ambivalence. And not listening is a quick way to dissolve trust between leaders and their teams.

From my experience, leaders could use some listening practice. Why don’t they listen? Though Richard Branson once joked that leaders love to hear their own voices, there are two main reasons. For one, in general, people are not taught how to carefully listen. And secondly, society expects leaders and entrepreneurs to have all the answers.

Truly listening to someone is more difficult than it seems and requires practice. Yet practicing takes more than just “keeping it in mind” throughout your day. Let’s look at five levels of listening, the do’s and don’ts of listening, and steps you can take to improve your listening skills.

There are several levels of listening, but here are five I find most important.

Highlight: Five Levels of Listening

1.    Ignoring is something we have all done. Someone is talking to us, but we are exploring things on the Internet, checking text messages, or thinking “what’s for dinner”. We are not actually hearing much of anything. 

2.    Pretend listening occurs when a person acts as if they are listening but is not following the full story of what is being said. They nod and smile but do not actually take in the message. This is a skill that can be finely honed by people who do a lot of inconsequential listening, such as politicians and royalty. We all do pretend listening at times; be careful because it can damage relationships when you get caught.

3.    Selective listening involves listening for particular things and ignoring other things. We hear what we want to hear and sometimes block out details that we are not interested in, or simply don’t want to hear. We listen for what we agree with, and then only remember that. Or we listen only for ways we don’t agree (this is usually as a result of a conflict), which can be quite frustrating when trying to come to an agreement.

4.    Attentive listening is what many of us do most of the time. This is when we listen to the other person with the best intention, yet become distracted by our thoughts of how we will respond. In attentive listening, we dip inside our own heads for a short while, try to determine what the person really means, and formulate questions for the person before we start listening again. If you find that you’re doing this, ‘fess up! Let the other person know that your mind wandered and say, “Could you please repeat that?”

5.    Empathic listening happens when the listener pays very close attention to what is being said, how it is being said, the message that is being portrayed, and what is not being said. Empathic listening takes much more effort than attentive listening, as it requires close concentration. It also requires empathy and understanding. You’re listening for the emotions, watching the body language and listening for needs, goals, preferences, biases, beliefs, values and so on. In other words, you’re listening in surround sound.

How to Be a Better Listener

Listening is actually a little painful. When we talk, we get a rush of chemicals sent to our reward and pleasure centers, so it is a selfish brain activity. There is no reward like that for listening. When you listen, you are halting your natural ways of thinking; it’s like holding your breath. Yet listening is a skill that can be learned, like a fitness test of the brain.

The first step to better listening is to choose to be a better listener and decide that it’s an important skill to you. It takes effort and a strategy and much like any sport, you will want to learn the steps, and then practice, practice, practice.

A Listening Acronym to Keep In Mind

Here is an acronym to help you become a better listener: NALE it.

N         Note what is being said.

A          Ask questions to clarify the story, and refine ambiguous words.

L          Look at what the other person is doing. Are they relaxed, tense, looking             away? This is all part of the communication they are sharing with you.

E          Evaluate what you think is really going on with the person. You are not   a psychologist yet, with a little empathy, you might pick up on some messages that are not being said. This gives you an opportunity to ask more questions. Stay in a curious state and you will learn so much more in less time.

Listening Do’s and Don’ts

To improve your listening, DO:

• Be 100% present. This means turning off all electronics, and keeping your eyes on the person.
• Be content to listen and to stay in the conversation until they feel like they are fully heard.
• Ask questions and take notes, including clarifying meanings of words. Many words in the English language have more than one meaning, or can vary drastically (such as the word “soon”).
• Show courtesy in your posture and your tone of voice by leaning into the conversation, and keeping your voice level.
• Allow emotions to flow freely, and acknowledge the emotions with your words.
• Pretend that you will be tested on what you heard and understood, if you are finding it difficult to concentrate.
  
  

To improve your listening, DON’T:

• React emotionally. Stay calm and focused on the other person.
• Offer suggestions or advice. This is a hard one! Yet if you are truly listening, all you’re doing is pulling information out. As soon as you start suggesting solutions, you are no longer listening.
• Talk about yourself. Even if you have had the same experience, don’t tell your story. It takes the attention off the person and back onto you. A simple “I have been there” can do the trick.
• Look at anything but the person. Stay focused on the person’s eyes, facial expressions, and body language.
  
  

Are you good at fully listening to others? Is listening a challenge for you? We’d love to hear your ideas about why listening may be difficult for leaders. Also, if you have experience working on your listening skills, let us know what steps you have taken.

Let’s share experiences. Leave a comment below, send me an email, or find me on Twitter.

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A Quick and Creative Way to Solve Problems at Work

Most of us have seen this image before. Some swear it’s a duck, while others swear it is a rabbit. Both are correct! But this exercise gives us a clear example of how individuals naturally see the world differently. And in the work environment, this different way of seeing things, if leveraged, presents a huge advantage.

Seeing the world, and situations, in only one way can interfere with our ability to problem solve. We look at situations in a way that comes naturally, and are blind to other perspectives that may increase our ability to solve problems or innovate. Each of us benefits greatly from the perspectives of others at the workplace.

Yet it doesn’t always feel that way. Often times sharing an idea in a meeting is like morphing into a dartboard. You share your idea, and then everyone throws darts at it. You may even try to get the buy-in from coworkers in advance of the meeting to mitigate getting shot down, frustrated—even embarrassed—so quickly.

What if I told you there was an easy and fun way to prevent this kind of meeting? What if you were able to use a simple methodology that instigates participation and positive outcomes to problem solving?

Enter the “Six Thinking Hats,” developed by Edward de Bono. As Freddi Donner explains, the Six Thinking Hats is “a tool for group discussion and individual thinking that involves six colored hats. “Six Thinking Hats”, and the associated idea parallel thinking, provide a means for groups to execute a thinking process in a detailed and cohesive way, which allows them to think together more effectively.”

What Are The Six Thinking Hats?

Here’s a great video explaining what the Six Hats are, and how the method works.

De Bono writes, “Each thinking role is identified with a colored symbolic ‘thinking hat.’ By mentally wearing and switching ‘hats,’ you can easily focus or redirect thoughts, the conversation, or the meeting.”

To understand each hat and the associated roles, take a look at the table below.

As a basic example, if you were “wearing” the green hat, you would approach an issue or conversation as creatively as possible. You’d look for possibilities, alternatives, and new ideas.

Yet if you were “wearing” the black hat, you’d look at the same issue or conversation with a keen eye for danger. You’d attempt to ferret-out anything that could go wrong.

Now, you must be prepared to be a little uncomfortable. It’s common to feel uneasy approaching an issue in a way you’re not used to. For example, if you’re someone who informs your own decisions based solely on facts, you may feel awkward or resistant to approaching an issue by expressing your fears, likes, dislikes, loves or hates. After all, you’re a facts person, not an emotions person. But forcing yourself to think from that perspective might surprise you with innovative ideas.

A Basic Example of Using the Six Thinking Hats

Let’s take a look at basic example and run through each of the six hats in action. Let’s say you are the leader at a software development company, which has been steadily growing. While you still feel like a startup, the fact is, you’ve outgrown your office. Employees are sharing desks, the space is crowded and cluttered, and two of the three meeting rooms have had to be converted into offices. This leads to unnecessary tension in the office, and people are starting to complain. You haven’t made the move yet because you know it will significantly increase operational costs.

Let’s approach this problem using the six thinking hats as a guide:

White Hat: What are the facts about this problem?

The basic facts are there are 50 employees (and growing) in an office space that comfortably accommodates 30.

Yellow Hat: What is good about having this problem?

It’s great to be growing! We’ve added amazing talent to the team and we will now be able to accomplish even more as a company. We can expand our current offerings and add new products to grow the business even more.

Black Hat: What is the worst that could happen if we don’t fix this problem?

If we stay in this office, the worst that can happen is expensive attrition. We will lose the great talent that it took us months to find. That will lead to low employee engagement, which leads to poor productivity and even more attrition. We won’t be able to move forward as a business without our talent.

Red Hat: What do I feel about this problem?

I feel conflicted. On one hand, my employees and their needs are the most important thing to me, so seeing them crammed in together makes me feel like I’m disappointing them. On the other hand, I’m hesitant to increase expenses in what feels like a pivotal time in the business. That makes me very nervous.

Green Hat: What are some creative ways to address this situation?

One idea is to have some of our team work from home to free up space in the office. Another possibility would be moving into a shared office space with another startup. This would cut the costs of a larger office space. Also, we could leave this area of town and move to the new burgeoning warehouse district, where rent is cheaper.

Blue Hat: How do you know you are following the six hats method?

I’ve written all of these questions down and written my answers under the designated color for each hat. I can share these notes with my VP and get her feedback.

In the end, this leader decided to create a small task force to investigate the new warehouse district, and possible shared office spaces with the other startups around town. They have a three-week discovery period, after which the team will meet with the heads of each department to vote on the best course of action. They will use the six hats again!

As you can see, this exercise enabled the head of our hypothetical software development company to think through the situation from several perspectives. And by forcing the consideration of different perspectives she may not naturally be drawn to, she achieved “parallel thinking,” which is a more dynamic way to work through a problem.

Let’s move beyond the individual and discuss how to incorporate the Six Thinking Hats method into our workplace. Here is a step-by-step guide.

A Step-By-Step Guide to Incorporating the Six Thinking Hats at Work

 

1.    To prepare, choose a work challenge and form a small team of 4 or 5 people.

2.    Make sure that your attendees are aware that you will be using this method and that your goal is to fully investigate the situation at hand and develop an execution plan based on the meeting. Therefore, all attendees who can contribute to the facts should plan to bring them to the meeting.

3.    Before the meeting, create an agenda, including a video link from the first lesson in this course, and ask your team to watch this video before the meeting. Ask your participants to be prepared to use this methodology when coming to the meeting.

4.    Make sure it is a safe environment and that no one is “wrong” for adding to the content of the meeting. Even if you do not agree, say, “That’s interesting” or “Let’s note that point of view”.

5.    Be sure to ask one of the participants to record all the points of view.

6.    Be sure to ask one of the participants to record all the points of view.

White Hat: The facts. What do you already know?

Note: Facts often get disguised as opinions. If someone states a “fact” that appears to be an opinion, ask the participant (without judgment): “What specific behaviors cause you to think that?” Or “How do you know that?” Listen for the fine line between opinions and fact.

Red Hat: What is your gut feeling about the situation? How do you feel about the situation? (Happy, angry, etc.; all emotions are to be recorded.)

Black Hat: What do we need to look out for?

Yellow Hat: What are the reasons to say yes? What are the benefits and upsides of this situation?

Green Hat: What are other ideas that can be a part of this thinking?

Blue Hat: Make sure all the participants are maintaining the parallel thinking.

These questions should really get the team thinking and spur an active discussion. For fun, if you can access paper (or hats) in the six colors, bring them to the meeting to reinforce the colored thinking. Bandanas would work as well.

If you’ve never tried the Six Thinking Hats method, we are excited for you to do so. As De Bono says, The Six Thinking Hats is “A powerful tool set, which once learned can be applied immediately!” We’d love to hear about your experiences with this method.

Let’s share experiences. Leave a comment below, send us an email, or find us on Twitter.

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Online Learning Increases Employee Engagement: What is Online Learning?

In my last post, I discussed why it’s important to incorporate multiple learning styles in a training program. Technology offers to best opportunities to do that. In this post, let’s look at what online learning actually is.

The U.S. Distance Learning Association (USDLA) seems to concur that there is no official, agreed-upon definition of online learning. There is however one commonality among various camps: the integration of instructional media. The USDLA calls out the use of technology infrastructures to make more “effective learning opportunities more accessible to all learners, whatever their age, location, or reason for learning.”

They go on to say, “It includes e-learning, texting, social networking, virtual worlds, game-based learning, and webinars. It’s the Internet. It’s Google. It’s broadband and satellite and cable and wireless. Corporate universities. Virtual universities. Blended learning, mobile learning. It’s using our phones and computers and whatever technology comes next, in new ways.” In other words, online learning is using technology to help students of all ages learn new concepts. We see it all the time with children’s apps to learn spelling, math, music and more.

We’re starting to see online learning more with adult learning as well through Learning Management Systems (LMS), which are often programs that incorporate videos, podcasts and academic information for adult learners. These can be synchronous (the course participants and lecturer all have to be online at the same time) or asynchronous (the course participants can access the information online, at any time).

Learning is Collaborative

Despite the appeal of customization, learning is collaborative and continues to rely on community. Most people think that collaborative learning means face-to-face training. However, online learning allows students to engage in meaningful ways through video, chat, journals or other multimedia options.

A New York Times piece concluded that the “real promise of online education” is the nature by which it can be tailored to suit individual needs.

It’s not just the addition of multimedia, such as video and chat that engages students better; the way multi-media are used in course design may have a strong impact as well. For example, the study shows that interactive video vs. non-interactive video may impact learning more significantly. Interactive video allows students to control the way they absorb information, such as fast-forwarding through a video or watching it multiple times. Are the students able to watch video in any order they wish, or is course content set to prevent any form of deviation? These types of tweaks make training programs more or less effective.

One big advantage of online learning is increased collaboration, which every organization could use. In traditional college classrooms, most students try to engage with each other and form study communities, to help each other learn the material. Online learning makes collaboration easier. For those who normally would not be able to collaborate in person, technology brings a wealth of knowledge to the student’s fingertips, giving access to the best experts and resources in every medium you can imagine.

Being online is already a part of our everyday life; it makes sense to integrate it into one of the most important pillars of our society: education.

Being online is already a part of our everyday life; it makes sense to integrate it into one of the most important pillars of our society: education.

Let’s share experiences. Leave a comment below, send us an email, or find us on Twitter.

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