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Motivation 101- How to Apply Expectancy Theory to Your Business

Motivation is a messy subject.  Perhaps each of us has wondered, “Why do people do what they do?”   Or, “Why is my child acting like that?” or “How can I understand why I want that shiny object?”

Those three questions are mirrored by academics, who state that all definitions of motivations attempt to explain 3 qualities:

1.  What originates, and energizes human behavior

2.  What drives human behavior toward/away from goals

3.  How behavior is maintained via systems orientation.

So how do you apply these 3 qualities to your business or your life?

Start with Expectancy Theory.   It is a valuable theory because it is new, treats both internal and situational forces, and assumes that each individual is rational and capable.  Expectancy Theory assumes that behavior is determined by a combination of forces, that people make independent decisions for subjective reasons, that differences can be studied systematically, and that individuals make decisions based on their perception of a likely reward makes intuitive sense.   A rational view for any business leader.

The 3 main concepts of expectancy theory are described as:  1.  performance – outcome (the belief that behavior X will likely lead to outcome Y), 2.  Valence (different value or subjective worth,) and 3.  Effort-performance expectancy (the belief that effort level X will lead to outcome level Y.)

Let me explain expectancy theory with a common example.  Imagine a manager of sales people.  For 12 years she has monitored sales goals (e.g. reach and frequency metrics) and her district has won national awards.  But the stretch goals are created by a third party vendor, using complex algorithms, that cannot be modified by the sales representatives.  Their performance-outcome is beyond their control.  Too often, their sales goals are set 120% or more above the previous year’s goals.  The result is de-motivating.  Sales representatives hope for goal correction in the third quarter, so that they improve their national standing before the forth quarter returns.  As described by the effort-performance aspect of expectancy theory, some salespeople simply cannot exert enough effort to yield a desired outcome.   Expectancy theory assumes any value, when multiplied by zero, will yield zero motivation.   Sadly, that was true year after year for too many sales people.

Perhaps they needed to apply expectancy theory to their management tactics!

Expectancy theory has value to managers because it has predictive validity, respects subjective differences of direct reports, can be applied to SMART goals for performance reviews, outcomes can be directly linked to reward systems, and is simple to apply (especially if managers ask people, “What motivates you?)

Expectancy theory has value to organizations because outcomes can be tied to rewards and compensation, it acknowledges different designs of jobs and roles, and it acknowledges influence of groups with different membership needs.

So, can you apply Expectancy Theory to your compensation rewards?  Or to your business?

If stuck, contact Doug Gray at 704.895.6479 or at www.action-learning.com.

 

If academic, here are some good sources:

Porter, L. W., Bigley, G. A., & Steers, R. M. (2003). Motivation in Organizations. Motivation and work behavior (6th ed.) (pp. 1-39). Boston: McGraw Hill.

Robbins, S.R., & Judge, T.A. (2012).  Essentials of Organizational Behavior (11th ed.)  (p. 18).  Saddle River, NJ: Prentice Hall.

Corporate Trends in diversity coaching

Diversity in Corporate America.

I recently did some research on trends in diversity and leadership coaching.  As you may know, an international assignment is often mandatory for high potential employees in global companies.  Recent research indicates that corporate leadership teams with more diversity yield higher shareholder values.  Initiatives within companies designed to identify and promote internal talent lead to higher retention and engagement rates.  Global markets require experienced leaders.  Many companies want to increase cultural diversity for the employees who are relocated, and for those in the host culture.  There is a subset of executive coaches who specialize in supporting the diversity goals of those companies.  That subset is called “diversity coaches.”

One article is an interview with Bo Razak, a senior consultant and diversity coach, conducted by Wendy Conklin, editor of The Diversity Factor (2006.) Razak specializes in diversity issues, and developing leadership skills that can support organizational missions such as increasing diversity awareness.

Razak states that executive coaching “for diversity” narrows the focus or framework to specific leadership capabilities that support the leader in developing his or her capacity to incorporate diversity into all aspects of work (37).  Also, the coaching engagement may be shorter term than another executive coaching engagement.  The diversity coaching engagement may focus on “leading by feeling” so that members of subordinated groups may feel supported with examples of empathy, or awareness of group identity and its effects.

Group identity is so central to Razak’s description of diversity coaching that I include his explanation.  “Everyone has multiple group identities, including age, ability/ ableness, class, education level, ethnicity, gender, gender identity, nationality, race, first language, religion / spirituality and sexual orientation. In organizations and society, the extent to which we are aware of the meaning and impact of these identities is key to understanding the impact of diversity and changing the status quo.”  (38)

Razak describes 4 critical factors for diversity coaches.

1) The primary factor is organizational support for diversity coaching, and diversity issues, that are tied to compensation rewards.  He states that leaders need to adopt a “diversity lens” and become inclusive in language, action, and words.

2) Leaders need to become comfortable with a common language that is inclusive and enables them to discuss words like “gender” and “sexual orientation” in any strategic or operational discussion,

3)  Leaders must pay attention to the dynamics of difference, and multiple perspectives from multiple group identities, by engaging a broad range of perspectives.

4)  And leaders must actively solicit feedback on how they are embracing the capabilities of diversity, and make open statements that reflect awareness of multiple perspectives.

My takeaways from this article include the following:

1) My 25 year-old nephew was recently promoted into a role that required an international assignment.  That experience is exciting for him, and he is young for such an assignment.  I cannot imagine that he will eagerly embrace that culture; he would benefit from such a diversity coach.

2) Diversity coaching requires a systems approach to others.  The coach must be aware of the layers of corporate expectations.  The leaders/ coaching clients must be willing to engage in anything called diversity coaching.  If it is an EEO requirement for compliance, or an extension of a training, those requirements may minimize the impact of diversity coaching.  Razak states that compensation must be tied to behavioral outcomes based on the diversity coaching.  That point reminds me of Peter Drucker’s maxim that “what gets rewarded leads to results.”

3) Selecting and matching coaches with leaders/ coaching clients requires a high level of awareness of group identity.  But there are no rules.  It may be ideal to match people from dramatically different group identities in order to be more effective.  For instance, if I were being coached by a Hispanic, lesbian woman from Brazil, and I am a Caucasian, heterosexual male from the U.S., we may be well matched.  Or it may be a setup for failure.

4)  Diversity coaching may be a shorter-term engagement than executive coaching engagements.  However, the effects of diversity coaching may be more anecdotal than measurable, and longer term rather than shorter.  And in a country that is more ethnically diverse, such as Canada, diversity coaching may be more effective than a country that is more ethnically homogenous, such as Japan.

Conklin, W. (2006). Executive Coaching for Diversity: An Opportunity for Leaders to Learn and Change. Diversity Factor, 14(2), 37-42.

What are some of your takeaways from this subject?

Call me or contact me to discuss them today.

Who is Doug Gray, PCC?

Doug Gray

Doug Gray, PCC, is a Leadership Consultant and Executive Coach.

 

Coaching and Consulting Experience

Since 1997, Doug has partnered with hundreds of executive leaders in the Healthcare, Energy, Manufacturing, IT, Construction and Financial industries.  He is quick to say that he has “just enough expertise to support leaders, without too much complicating industry-specific knowledge.”  His clients agree.  Doug typically uses customized assessments to assess organizational and individual strengths.  A popular speaker and facilitator, Doug loves to facilitate experiential leadership training programs and strategic planning retreats.  His recent speaking topics include “How to Apply Positive Psychology to your Business” and “How to Increase Employee Engagement.”

 

Doug knows how to manage and lead teams.   Doug brings a unique background as an educator, administrator, and non-profit director to his clients. That background enables him to help leaders who are passionate and need his direct, supportive expertise.   He is regarded as an expert facilitator using Action Learning methodology.  And he will bring strategic focus, humor, and proven expertise to maximize your consulting investment.

 

A representative list of leadership coaching engagements and clients include:

  • CFO and 20 leaders in finance and accounting, Fortune 500 energy construction company, who needed to embrace a redesign without losing productivity
  • team of EVPs tasked with redesigning the IT needs of their F100 healthcare company
  • MD struggling with burnout who needed confidential consulting (e.g. anonymity from his employer and insurer)
  • CEO in a technology company recently promoted to replace the founder
  • President and 18 members of executive leadership team, Fortune 500 energy construction company, who needed to demonstrate alignment within 6 months
  • SVP and site managers at a nuclear power construction site who needed to increase alignment with business partners and avoid negative media
  • SVP in functional but de-centralized group who needed to assimilate 20 leaders, using action learning methodology in direct meetings, coaching, and SharePoint to drive accountability
  • Small business owner of a franchise who needed to fire an employee after 11 years of good service
  • SVP, global bank, who needed to reorganize a division
  • VP, global bank, seeking career opportunities
  • newly hired VP who needed to develop radical transformation of a functional group that required external coaching and team building leadership training using a customized app
  • Newly promoted director who lacked interpersonal skills to manage 33 people
  • Founder of an IT company who was not able to develop new business

Business/Organizational Leadership Experience

Doug has been a successful business owner since 1997; he knows the challenges and “what works.”  He co-developed the Leadership Development Institute at the University of Maryland, College Park and taught there for 7 years, and he is a former adjunct faculty member at several colleges including NC State University.  He directed a non-profit agency in Washington, D.C. for 9 years and grew it 900% while managing 120 people.  As a former world-class athlete, Doug knows that the rigor of change requires regular support from experienced consultants, plus a dash of humor.

 

Education and Training

Doug’s graduate research at Dartmouth College included development of an assessment to determine risk tolerance and risk aversion.  That theme of mitigating risk in business and leadership has prevailed in his continued learning from clients and colleagues in the safety, consulting, executive assessment, and leadership development industries.  He is certified in the Hogan suite, DISC, several 360’s, several EI assessments, and 5 coaching certification programs.  Since 2000, Doug has been a Professional Certified Coach (PCC) with the International Coaching Federation.  A perpetual learner, he is a doctoral candidate at the Chicago School of Professional Psychology in Organizational Leadership.  His research interests include the effect of positive psychology on business leaders, managers, and executive coaches.

 

Publications and Appearances

Doug loves to share his expertise as a speaker, facilitator and a writer.  As a keynote speaker, he has addressed annual meetings, executive retreats, and nonprofit leaders.  As a facilitator, he has partnered with clients to design experientially memorable leadership training solutions that range from boot camps to strategic off-sites to contests using customized mobile apps.  As an author, he has frequently been published in journals ranging from the American Society of Safety Engineer’s Professional Safety to Financial Advisor to webinars and hundreds of guest blogs.

 

He is a published author of articles on leadership development, physician burnout, healthcare, analytics, safety and productivity.  Doug has published two books:  Passionate Action; 5 Steps to Creating Extraordinary Success in Life and Work (2007), and Adventure Coaching; A Guidebook for Action-Based Success in Life and Work (2006) that can be purchased here and here.

 

Consulting Value Proposition

“Developing smarter leaders.  Faster.”

Doug will not waste any of your time or resources.  He expects you to achieve great results.  And he always guarantees exceptional value.

Call him now at 704.995.6647  or contact us here or schedule your initial consultation here.

 

For biographies on other Action Learning Associates, Inc leadership consultants and executive coaches, contact us here or review the list of our partners here.  We also provide scaled solutions for any-sized organization, anywhere in the world.

What is Safety Leadership Coaching?

My definition:  Safety Leadership Coaching is an emerging field of professional development for yourself and others.

TIP:  Scan the words in bold.  Then apply them to your world.  Then call me to discuss.

The phrase “emerging field” recognizes the fact that the safety business is new, since OSHA gained influence in 1970.  Prior to that time, workers were measured by hands, feet or hours of productivity.  The early “safety professionals” were compliance-driven people tasked with issuing fines, citations, tickets, and quotas.  At some companies, “Safety Infraction Report” mandate was required by 4:00 each afternoon; and if you received 3 SIRs then it was time to find another job.  Many safety employees were former police or military.   The “Safety Cop” compliance requirements remain a powerful legacy today.

In the 1990s the safety industry, like most industries, was affected by global trends including humanism and diversity.  Individual choice was recognized more than ever. Leadership and organizational development programs emerged as professional schools of research.  In the workforce, safety leaders supported individual choice, good judgement, and reinforced desired behaviors.  “Safety coaching” emerged as the dominant methodology to observe and recommend desired behaviors.  The Certified Safety Professional Program, endorsed by BCSP, gained impact as a minimal standard for hiring and program implementation. Safety leadership coaching emerged as a field of professional development.

The phrase “professional development for yourself” recognizes the fact that all change starts at an individual level.  As a species, humans change in response to external influences that promote our survival.  If we need to learn a new skill, or relocate to the next job site, we do so.  In the U.S. most people now have 5 careers on average.  However, too many safety leaders only have one career.  Too many people resist change.  Safety leaders can embrace coaching and training; or they can ignore it.  They can embrace career changes; or they can ignore them.  Too many safety leaders ignore career development opportunities.  Safety leadership coaching encourages people to explore choices and develop their strengths.

The phrase “professional development for others” reinforces the job description that safety  leaders typically “observe and recommend” desired behaviors.  They typically have broad access to all aspects of a job site or company.  Consequently they have vast potential impact on all aspects such as quality, operations, sales, business development, etc.  However, safety leaders do not embrace their potential impact.  Too often they “stick to their own business” and “keep their heads down.”  That limits their impact as leaders.  Safety leadership coaching leverages the vast access and potential impact of safety leaders.  Safety leadership coaching helps leaders obtain desired results.

There is an old story about the student who seeks a teacher. He travels to many lands and reads a lot, stares at a mirror, and generates lists.  He is lonely, alone.  One day he realizes that he learns best when he is in relationship with others.

So it is with safety coaching.  Humans learn best when we are in relationship with others.

Here are some simple coaching questions:

1.  Who is the wisest leader you know?

2.  How can you develop better relationships with others?

3.  What are you afraid of in your career?

4.  Who needs you to coach them?

Send me your answers, or comment below.

BIO:  Doug Gray, PCC, has coached 50+ safety leaders and learned from their expertise.  He knows nothing about fall protection standards. www.action-learning.com or 704.895.7479

How to develop Strategic Partnerships that work

Most strategic partnerships fail.  The often publicly stated reason is that there was some “inequity in resources.”  That is rubbish.   The private reason is that the potential partners did not have clear role definitions.  

 

Great coaches should be able to help you develop successful strategic partnerships.  Sadly, too few coaches have enough expertise to explain the following.

 

I invite you to adapt and forward this post.  This formula works.

 

Let’s imagine that two consultants agree to partner on a consulting project.  They each have something mutually beneficial to contribute.  And the net result will exceed whatever they could provide individually.  In short, they need one another.  They need a formula to define clear role definitions.

 

Typically there are 3 phases in any consulting project:  sales, technology/unique solution, and delivery.  (Adapt this formula as you see fit for any project or partnership, but try to keep it simple.)  Assume that each phase is worth 1/3 of the total value to the consulting project.  If the project is worth $90,000 then the sale is worth 1/3 or $30,000, the technology is worth 1/3 or $30,000, and the delivery is worth 1/3 or $30,000.

 

Example #1:  Assume that Matt brings expertise in sales and delivery.  Assume that Doug brings expertise in technology and delivery.

 

So they agree to the following formula:

 

Matt provides 80% the sale of $30,000 for a total of  $24,000.  Matt does not provide any direct value for the technology.  Matt provides 50% of $30,000 or $15,000 for the delivery.  Matt’s total compensation for the consulting project will be $39,000.

 

Doug provides 20% of the sale of $30,000 for a total of $6,000.  Doug provides 100% of the technology for a total of $30,000.  Doug provides 50% of $30,000 or $15,000 for the delivery.  Doug’s total compensation for the consulting project will be $51,000.

 

This formula assumes that each consultant will mutually benefit one another and their client.  

 

Your partnership agreements should also assume that they are beneficial to all parties.

 

Last week I received a proposal to partner in a new venture.  I used this formula in the following manner:

 

Example #2:  Tom brings expertise in sales.  Sue brings expertise in delivery.  Doug brings expertise in technology.

 

After due diligence and some realistic fact finding, I proposed the following formula for $300,000 gross revenue in year 1.

 

Tom provides 80% of the sale of $100,000 for a total of  $80,000.  Tom provides 10% of the technology value of $100,000 for a total of $10,000.  Tom does not provide any direct value for the delivery.  Tom’s total compensation for year 1 of this project will be $90,000.

 

Doug provides 10% of the sale of $100,000 for a total of  $10,000.  Doug provides 90% of the technology value of $100,000 for a total of $90,000.  Doug provides 20% of $100,000 or $20,000 for the delivery.  Doug’s total compensation for year 1 of this project will be $120,000.

 

Sue provides 10% of the sale of $100,000 for a total of  $10,000.  Sue does not provide any direct value to the technology. Sue  provides 80% of $100,000 or $80,000 for the delivery.  Sue’s total compensation for year 1 of this project will be $90,000.

 

Call me if you have any questions about this formula.  Or read Alan Weiss’ The Million-Dollar Consulting.  He has developed this formula and deserves any credit for its success.

 

Yes, my clients have used this formula.  Yes, I have used this formula.

 

But most people leap into a business “partnership” without using such a formula.  Hence, most businesses fail.

 

Do not become another statistical failure.  Hire a great coach.  Today.

2 rules for Power, Sales and Greatness

Recently I read an article that inspired me to share these 2 rules:

1. Never give power away to an event that has not yet occurred.   Humans are motivated by fear and greed, as well as faith and service. When I am slow to call a sales prospect, I am giving away my power. When I am slow to develop a new project, I am giving away my power.  Fear leads to fright, freeze, or flight.  (Those 3 ancient responses that humans share with all mammals…) Instead, I can choose to be fearless.  To live in faith toward serving others.  Why would I ever give away my power?

2. Get great.   Many people talk about great figures in history, as if familiarity is a reflection of greatness.  Some were my professors and colleagues.  That is B.S.  I have met hundreds of leadership coaches and speakers. Few of them are great people. I have had hundreds of teachers from all walks of life.  Few of them are great people.  The only purpose of human life is to get great.  Nothing else matters.  I can get great at serving others.  I can get great at loving my family.  I can get great at purposeful work.  I can get great in countless ways… Action leads to learning.

So, some coaching questions are:

1.  “How are you choosing to be fearless?”

2. ” What are you doing to get great?”

Then share your answers with an accountability partner.  If you are stuck, hire a great coach.  Today.

Last week I met a great writer.  He opened with, “Frankly, I am the best copy editor I have ever met.”  He sells fiction online.  And writes corporate copy.  And has never done anything else… He is great.  Call me if you need a great writer named Patrick.

What do you think others are saying about you and your work?