Employee Recognition: The Yum Brands Way

Fortune has a feature article this week about David Novak, the CEO of Yum Brands.  The article focuses on the leadership development efforts at Yum Brands, with a specific emphasis on the employee recognition program at the firm.  Yum Brands has a lot of fun with employee recognition, but they also take it very seriously.  They know that it's vitally important, and they stress the need for leaders at all levels to recognize the contributions of key employees.  However, they also do it with a smile and a joke - they have fun with it.   Here's an excerpt from the article:

As in all things, the way it's done makes all the difference. Every company offers recognition -- a trophy, a plaque, a ceremonial dinner. It typically accomplishes little, for two big reasons: It happens long after the performance that's being recognized, and it's impersonal. The Yum version is the opposite. Faster is better. "You go into a meeting, and somebody blows you away by something," Novak says. "You get up, go back to your office, get your Yum award out, and you go back and say, 'God, that's so great.' Boom! You give him a recognition award. That's the best recognition of all."

And it must be personal. Every Yum acknowledgement -- a rubber chicken, a cheesehead (used at Pizza Hut), a roof tile -- can be written on, and it must carry a handwritten message. "You want to give away a piece of yourself," says Novak. 

These two attributes are so crucial: it must be immediate and personal.   I would add a third criteria.  Recognition must be about behavior, not just results.  You have to identify the key behaviors that you want to reinforce, and you must recognize the individuals who engage in these activities.  People must understand what you think is important for achieving the broader objectives of the organization.  Moreover, they must know that you not only care about achieving the desired results; you also care about how people about achieving those goals.   

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Do you care? How to increase employee engagement

In this Fast Company interview, Gallup's Jim Harter comments on the sad state of employee engagement in American corporations.  According to Gallup's research, only 30% of the U.S. population is engaged in the workplace, i.e. deeply committed to their jobs.  52% of the employee population is disengaged, and 18% is actively disengaged, meaning that they are "actively against what the organization, and their boss, is trying to get done."  Those statistics are rather alarming. Some companies, of course, have begun to focus intensively on employee engagement over the last decade.  Harter comments on what leaders need to do to increase employee engagement:

So, what are the qualities of leaders that businesses must now be seeking? According to Harter, it begins with a combination of being results oriented and authentically concerned about the development of every worker. “Some people are better at getting results and some are better at developing. But, we’ve found both are equally important.”  Harter describes the most effective managers as being deeply caring--and capable of seeing, supporting, and adjusting to the differences in people. “They help people build jobs that fit them as an individual person, while still helping them get to the outcome they need from an organization perspective.”

Authentically concerned - it's such a simple, yet powerful idea.  Think about what makes great professors or teachers.  Beyond simply knowing the material or being able to explain concepts clearly, great teaching is about showing students that you care.  My colleague, Jane McKay-Nesbitt, has this great saying about teaching: "They must know that you care before they will care what you know."  The same principle holds true for leaders.  People will not follow you if they do not believe you care about their well-being and development.  Engagement starts with authentic concern. 

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Engaging Your High Performers

Forbes reported this week on a startling new study by Leadership IQ, a company that does a great deal of work on the assessment of employee engagement.   The firm examined data from 207 companies on employee performance as well as employee engagement.   According to Forbes,

"In 42% of the companies, the employees who do the worst job are the ones who feel the most “engaged.” At the same time, the middle and high performers in those firms feel disconnected from their jobs and not very motivated to come to work every day."

\The article, by Susan Adams, does a very nice job of explaining many of the reasons for this result.  Adams, drawing on a conversation with Mark Murphy (Leadership IQ CEO), argues that the lack of a true meritocracy causes disengagement among high performers.   Company leaders aren't having the difficult conversations with low performers, and they are not properly recognizing the best employees.  I cannot argue with that finding; it seems quite reasonable.

I would argue, however, that one other cause may exist for this alarming finding.  Many companies simply are not investing effectively in leadership development for their top performers.  Notice that I did NOT say that they are not investing ENOUGH.   Many companies are spending a great deal of money on leadership development programs and processes.  However, many organizations are not spending that money WISELY.   We see a litany of problems in many companies:  Too many one-off events exist.  Too many programs lack cohesion.   Too many leadership development events lack clear criteria for determining who should be involved or invited.   Far too little follow-up exists after programs are delivered.  Until firms start designing more effective leadership development activities, and begin spending their resources more effectively, we won't see engagement rise significantly for the highest performers. 

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Your Front-Line Employees are Your Brand!

Companies spend a great deal of time and money building advertising campaigns, social media strategies, and other promotional vehicles to build brand equity.   For many firms, though, their front-line employees represent the most significant way that customers experience the brand.  Those employees become crucial ambassadors for the brand.  

Starbucks understands the crucial role that front-line employees (the baristas) play.  It has invested heavily in a program to inspire and motivate the baristas, and to help them bring the brand's values to life in each Starbucks location.   The company has created the "Starbucks Leadership Lab" to inculcate the core values of the brand in its workforce.  Here's an excerpt from a Fast Company article about this program:

Starbucks’s Leadership Lab is, as its name implies, part leadership training, with a station that walks store managers through a problem-solving framework. It’s also part trade show, with demonstrations of new products and signs with helpful sales suggestions, such as “tea has the highest profit margins.” The majority of experiences are meant to be educational, including several that give store managers access to top managers of the company’s roasting process, blend development, and customer service.  

But what makes the Leadership Lab different than a typical corporate trade show is the production surrounding all of this. The lights, the music, and the dramatic big screens all help Starbucks marinate its store managers in its brand and culture. It’s theater--a concept that Starbucks itself is built on.  “The merchant’s success depends on his or her ability to tell a story,” writes Schultz. “What people see or hear or smell or do when they enter a space guides their feelings, enticing them to celebrate whatever the seller has to offer.”

In this case, Starbucks is selling its employees the Starbucks brand. And it has given the Leadership Lab the same attention to detail as its store ambiance.  As Valerie O’Neil, Starbucks’ VP of global communications, puts it: “[The experiences] are wrapped in a very inspirational journey, so partners can walk away not only understanding and informed, but feeling it.”

Note that such programs cannot be efforts to simply dictate practices and policies to employees.  It cannot be an attempt to brainwash them regarding the company's goals and values.  It has to be a forum for two-way communication.   The messages and the values conveyed to employees must be authentic.  Store managers must "walk the talk" each and every day.  If not, then such programs will do more harm than good. Associates will feel that they have been misled.  They have to be part of the process, and there must be opportunities for them to express their ideas to management.  The photograph above demonstrates one of the ways in which the associates' ideas and thoughts are captured at the Starbucks Leadership Lab.

 

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