Manage Smarter

By Gregg Lederman

The most profitable companies today have something in common—many of them also are recognized as one of the best places to work in their respective industries. The leaders of these companies have made a conscious decision to put their employees first.

Why? They know they must first "delight the workplace" in order to "delight their customers."

Think about it. Employees are on stage every day performing behaviors and experiences for customers. If they're not happy, their attitudes and behaviors reflect it, resulting in poor or inconsistent work performance. This drains your company of its ability to deliver exceptional products and services, sustain loyalty and increase profits, and attract and retain more talented performers.

I can't think of one leader I've met who wasn't motivated to achieve more profitable growth. But I can think of thousands who believe throwing dollars at morale and retention problems will delight their workers enough to boost results. Unfortunately, this approach doesn't foster sustainable results.

Turning your organization into a profitable, best place to work isn't about lavishing employees with incentives and creative work schedules. It's about providing the knowledge, tools, and direction to help employees see how their performance impacts success.

Let's face it—people don't get out of bed each day and run off to work to make company owners more money. They do it to earn a living and to feel like they're making a difference.

Yet in a recent study conducted with more than 12,000 U.S. employees, nearly 50 percent were not happy with their work, and a whopping 60 percent felt their company's mission couldn't be translated into ways that are meaningful to their work.

Companies can begin to ignite each employee's intrinsic desire for making a difference by making their "stuff" more meaningful.

First there is the "Who Stuff," a clear description of who your company is or wants to be known as (brand image/reputation). This typically consists of mission statements, values, principles, cultural drivers, and brand promises.

The second type of stuff is the "What Stuff," the desired business results to be achieved. This includes clearly stated goals and objectives, such as customer satisfaction, financial targets, and measurements.

Companies often fail to make this "stuff" actionable by giving employees direction on how to do it as part of their day-to-day work. Without these guidelines, they can't possibly embrace the "stuff," commit to doing it, and take action to deliver great performances for customers.

Best companies to work for solve this dilemma by putting into practice what I call the "How Factors," a simple, logical framework for ensuring employees aren't frustrated by an overload of "strategery" they don't know how to do.

There are three How Factors every company should do:

1. Set clear behavior expectations. Develop and integrate proprietary brand-driven behaviors that clearly define what successful performance is at the company level and individual level by job function.

2. Deliver strategic and consistent communication. Integrate expectations for doing these behaviors into critical leadership and human resource practices including recruitment, hiring, onboarding, and performance assessments. Then, continually educate and motivate employees through a strategic, performance-focused recognition program. If executed well, this program also can be used to capture and share best practices on ways for achieving business results.

3. Drive accountability for success. Measure employee understanding and action on the behaviors and experiences that bring the brand to life through performance assessments and evaluations. To fully evaluate success, managers also should measure performance against the company's documented "stuff."

Companies that do these How Factors are rewarded beyond financial benefits. Just ask Southwest Airlines. A couple years ago, they reported having 225,895 applications for 1,706 open positions, enabling them to attract the best talent. And because employees are happy, Southwest customers are the happiest in the industry, ranking the company No.1 for the last 15 years. This is why Southwest has been profitable for 35 straight years when the competition continues to struggle.

Recently, when I was shopping at "best place to work" Wegmans Food Markets, "Ray," an assistant manager who looked about 35-years-old, went above and beyond his duties to ensure I had the right product. Imagine my shock when I learned he had been working there for 21 years!

Dying to know why he stayed and was so happy, I asked: "Don't you think it's time to spread your wings and try a different company?"

"No way!" said Ray adamantly. "I'm never leaving this company—I love working here!"

Wow! How many employees in your company would say that?

Most of us spend the majority of our waking hours at work, so naturally we prefer to work in an organization that is a best place to work. As Ray demonstrated, knowing how we contribute to the success of the company fuels satisfaction and a genuine passion to "go the extra mile."

Employees at Cowan, Gunteski & Co regularly exceed performance expectations. The firm's use of a new employee engagement system enabled it to capture more than 1,000 best practices on how staff is impacting the business. The universal education and appreciation that has resulted is a primary factor in the firm's recent awards, including Accounting Today's "Best Firms to Work for in 2008" and "Best Place to Work in New Jersey in 2008."

If your company isn't building respected and trusted relationships between management and employees, or employees aren't taking pride in their work, get laser-focused on the How Factors. Set and communicate behavioral expectations and watch how accountability for success flourishes, putting your company on the path to becoming a more profitable, best place to work.

Gregg Lederman, founder and managing partner of Brand Integrity Inc., gives seminars on branding and employee performance. He is a professor at the Simon Graduate School of Business at the University of Rochester and is the author of "Achieve Brand Integrity: Ten Truths You Must Know to Enhance Employee Performance and Increase Company Profits."