book.chapter Boosting business with recognition

Before a business can harness the power of recognition to boost its performance, it is essential to establish a solid foundation. This foundation is built upon what are commonly referred to as the "Big Four" areas of leadership, which include goal setting, communication, trust, and accountability. It is encouraging to note that even a modicum of competence in these areas can lead to a significant increase in management effectiveness when combined with effective recognition strategies. Indeed, the hallmark of exceptional management is the integration of recognition with these core leadership traits. Effective leaders are adept at providing their workforce with clear, unequivocal direction. They delineate what is of value and worth striving for, as opposed to what is of marginal importance. These leaders are skilled at imbuing their employees' work with a sense of purpose that is both clear and compelling. This goes beyond merely presenting a mission statement and expecting employees to decipher their individual goals from it. Instead, exemplary leaders are committed to aligning the daily activities of everyone with the overarching goals of the company, thereby ensuring that personal career development occurs consistently. The ability to set goals and see them through is a fundamental and valuable skill for any manager. People appreciate clearly communicated goals as they instill a sense of purpose. Effective leaders ensure that everyone is aware of what is expected of them. Great managers are characterized by their open and inclusive communication style. They engage in ongoing dialogue, discussing a variety of topics, including guiding values, organizational goals, company challenges, useful information, and employee opinions and ideas. By communicating openly and candidly, they create a more inclusive workplace environment. This openness signals to employees that their ideas are valued and should be freely expressed. When employees feel informed and are not kept in the dark about certain aspects of the business, they are more likely to come forward with their own ideas. Effective leaders share all available information with their team members, fostering an environment where employees feel empowered to contribute. Trust is a central concept in business, and great leaders are known for their ability to trust their people to do the right things. This trust is often reciprocated by employees who are motivated to give their best efforts when they believe their manager has their best interests at heart. A leader who trusts his or her team members is someone who is willing to publicly acknowledge their own mistakes, values keeping personal commitments, takes the ethical high road in gray areas, refuses to engage in deception, and actively contributes to the organization's positive reputation in the broader community. Leaders can build trust by increasing their visibility and interacting with employees at all levels. Holding open forums where any question can be asked can significantly boost trust within the organization. Accountability is another key aspect of effective leadership. It can be frustrating for employees when their organizations fail to hold them accountable for results. Accountability means recognizing employees for their achievements as well as their mistakes. It is crucial for employees to feel that they can make intelligent mistakes without jeopardizing their career prospects. Great leaders foster accountability by regularly measuring progress and addressing issues in a timely and reasonable manner. While many companies are adept at identifying failures, they often fall short in celebrating successes. Effective leaders strive to create a balance, encouraging an environment where employees feel safe to innovate and improve, even if it means experiencing some initial setbacks. When recognition is added to these four areas of leadership, its effectiveness and impact are greatly amplified. Recognition serves as an accelerator, enhancing what each of these leadership traits can achieve. By openly rewarding actions that align with organizational goals, leaders can foster a sense of competence, commitment, and unity among employees. Recognizing beneficial actions within the organization can lead to changes in day-to-day behavior, increased pride in work, and a willingness to take on challenging assignments. Public recognition of contributions can build trust and strengthen team bonds, while recognition in the context of accountability can validate progress and enhance engagement. Despite the numerous benefits of recognition, many managers fail to utilize it to its full potential. According to a Gallup Poll, approximately 65% of American employees reported not receiving any praise or recognition for their work achievements in the past year. Of the 35% of managers who do use recognition, they can be categorized into two groups: Expectors, who give recognition with the expectation of something in return, and Altruists, who recognize employees because they genuinely care about their well-being and potential. The Altruist approach aligns employee interests with company interests, fostering a partnership rather than a transactional relationship. In conclusion, recognition, when applied to the Big Four of Leadership, acts as a performance accelerant, benefiting both the individual employee and the organization. Managers who excel in the Big Four and leverage the power of recognition can achieve higher levels of employee engagement, job satisfaction, profitability, and retention. They create an environment where employees are encouraged to take on new challenges and communicate openly with their managers. Recognition is not a passing fad; it is a timeless principle that can be applied in various ways to foster a culture of appreciation and success.