Fostering Trust Within the Workplace Presenters Paul Silvis

Fostering Trust Within the Workplace Presenters: Paul Silvis, Founder, Restek Corporation Paal Gisholt, CEO, Smart. Pak Moderator: Diane Stoneman, Director of Consulting & Training, Winning Workplaces © 2008 Winning Workplaces. May not be reproduced or distributed without expressed written permission of Winning Workplaces.

About Winning Workplaces q Founded in 2001 by co-owners of Fel-Pro, an auto manufacturer nationally recognized as a leader for progressive workplace practices. q Nonprofit committed to helping small/midsize organizations build healthy, innovative and productive work environments. q Triple bottom line: Business, People, Community.

About Winning Workplaces Online Clearinghouse Workplace Recognition Project Consulting and Training

Top Small Workplaces Competition q In collaboration with The Wall Street Journal q 2007 Winners profiled: WSJ. com/Entrepreneur q 2007 TSW Report @ Winning. Workplaces. org q 2008 Top Small Workplaces underway q Wall Street Journal announces October 13 q TSW Conference October 14 & 15

Top. Small. Workplaces. Winners 2007 Top Alaska Wildland Adventures Barclay Water Management Corporate Ink Cowden Associates Inc. Exactech, Inc. FRCH Design Worldwide Gentle Giant Moving Co. Guerra De. Berry Coody Healthwise NRG Systems, Inc. Phelps County Bank Point B Solutions Group, LLP Reflexite Corporation Restek Corporation Summit Aviation

Why trust matters in the workplace As a wise CEO recently said: "As leaders we should not spend our time trusting our employees, we should spend our time getting our employees to trust us. " Without trust, employees: - have little interest in being creative - take less risks - collaborate less Leads to complacency, inefficiencies and missed opportunities.

What the research shows The Conference Board Report: “Employee Engagement, A Review of Research and Its Implications” 2006 Current 2003 -05: 12 major studies on employee engagement: Gallup, Towers Perrin, Blessing White, Corporate Leadership Council

26 drivers of employee engagement 8 agreed upon 1) Nature of the job 2) Line of sight between employee and company performance 3) Career growth opportunities 4) Pride about the company 5) Co-workers/team members 6) Employee development 7) Relationship with one's manager

Key driver #8: Trust and Integrity Degree to which employee feels mgmt team: • is concerned about employees’ well-being, • tells the truth, • communicates difficult messages well, • listens to employees then follows through, • demonstrates company’s goals/values through personal behavior.

Today’s agenda q Two leaders’ on developing cultures of trust q Philosophies and practices q Impact on business and workforce q Lessons learned q Questions from audience

Featured Leaders Paal Gisholt CEO Smart. Pak Paul Silvis Founder, Inventor, Coach Restek Equine & small animal products Plymouth, MA Designs and manufactures products for analytical laboratories Bellefonte, PA 230 employees Over 300 employee owners

Photo Paul Silvis Founder, Inventor, Coach Restek Corporation

Restek’s business Analytical Market : - Gas Chromatography Columns - HPLC Columns - Packed Columns - Instrument Accessories - Reference Standards - Air Monitoring Canisters - SPE Technology driven division: - CVD Coating service - Passivation, Corrosion, Anticoking, UHV, Decorative

Perception is important Restek started 23 years ago with a simple future vision for success “If employees enjoy coming to work as much as going home, no one can beat us!”

Restek’s vision of its future will in fact determine how its future looks! Employees must trust in the future!

Trust increases when…. ……a company does what they say they are going to do!

Why do people follow leaders? Respects the leader, mission, and vision Trusts leader to do what he says Leader shows he cares (heart) Leader shares same strong values and not afraid to fail (vulnerable) Supports and aligns with my goals (servant) Creates inspiring vision of future (simplifies the complex)

1997 - “CEO/President” to Head Coach! The Head Coach Works for people! The Job of Head Coach • Put right players in right positions • Provide training, tools, opportunities to become star players • Encourages atmosphere of support and honesty • Help define team's winning strategy For the sake of creating a championship team which each member can be proud of!

Encourage atmosphere of support and honesty q A good coach makes adjustments to align employee perception with how they want to be perceived. q Say what you mean others to hear. Thank you to the “High S” team!! Coaches learn Wordsmithing! q Company surveys & 360 reviews provide data that allows coach to make adjustments in the way employees perceive the company.

Align personal and corporate goals ……to ensure every employee enjoys coming to work as much as going home. Combines the success of individuals with corporate success. § Sail boat § Sherry is in Vet school! § Help employees interview Help employees write their resume!

How do coaches fix problems? 1 st: Look at Leadership. 2 nd: Look at systems, structures, procedures, & training. Finally, Look at “people” Austin Mc. Gonagall: “Ask, don’t tell. ” White hat – black hat

Create atmosphere of trust and honesty Trust increases when you communicate “how the decision” will be made. Level I, III decision making avoids false participation. - Level I made with input - Level II is consensus - Level III is delegated Vertical probing, “question behind the question. ” Accept that decisions will be criticized & second guessed. (Manage the input!) Controlling “body” reactions when criticized.

Creating a culture of trust What gets rewarded gets repeated - Offer incentives/meaningful rewards - Match rewards to individual preferences - Personalize rewards ($$ spent not equal to value received!) - Treat employees like winners (positive vision) - Plan Spontaneous Recognition!

Creating a culture of trust What gets measured, gets improved - Establish clear criteria for performance - Focus on performance - Communicate expectations - Show them the score - Challenge them to exceed expectations!

Trust correlates with success “If employees trust and respect the company they work for and the people they work with…… there is no limit to what can be accomplished!”

Photo Paal Gisholt CEO, Smart. Pak

Words of wisdom “I'm not upset that you lied to me, I'm upset that from now on I can't believe you. ” Frederick Nietzsche

360° Re views igh t o D n Ope y c i l o or P ene Financial Trans parency d. C om p. P rog ram s TOLERATING FAILURE ement Enl Programs Engag Mentoring “Walking Your Talk” Scorin g Building trust – so many concepts

Chaos in the feed room x 30 = • • Missed/Inaccurate Doses Inventory Hassles High Labor Costs Potency Losses

Smart. Paks tame the chaos Smart. Pak Confidential Before After

Unapologetically “hard core” We have grown at 10 X industry rate We push ourselves hard We like to win

We ARE intense But we have REJECTED controls Key Message Today: “Controls are Anathema to Trust” The “well-controlled” workplace – – Signing authority Strict budgets and “high accountability” Supervisor approval required for customer refunds Requiring permission to take a business trip

We ARE intense But we have REJECTED controls q Business schools teach controls q Investors require controls q Auditors validate adequacy of controls. . . but…. . good employees resent the lack of trust associated with controls!

The Alternative: A trusting culture Tips: – Avoid over-reliance on job descriptions, controls, etc. – Hire great people and build a great culture Result: - True magic on behalf of customers! – Culture doesn’t just happen – hard work

Stages of culture Quarterly Updates: “Celebrating Values” The Ping Pong Table: “Witnessing Actions” Monthly Beer Blasts: “Hearing Stories”

Culture begins with shared values q We formalized culture in order to preserve it q Participative process to define core values – though mostly vice presidents q From 25 values initially proposed – down to eight that we were willing “To Live”

Smart. Pak’s culture Speed Maniacal Customer Service Analysis Risk-taking Teamwork Execution Respect

Risk-taking: the real deal q People talk about tolerance for risk q Actions speak louder than words – esp. when projects fail q Celebrate “Guts” to take a stand or challenge conventional wisdom. As we become more senior, we forget how hard it is.

Reinforce values continually q SMARTER awards given each quarter q Nominations throughout the company q Catching someone demonstrating a core value – beyond just doing their job q Making of great stories: The Tack Trunk Fiasco

Avoid controls for speed and trust q Let the little things slide q Nothing’s fatal – except paralysis and lack of engagement q Don’t Be a Bottleneck – coach after the fact for learning, Not Punishment q Manage to the culture; not the control q Failure to “Get the Culture” may indicate lack of fit – main reason for involuntary turnover

Questions? www. smartpak. com www. restek. com

Upcoming 2008 Webinars Sept 25 Maintaining Community in a Virtual Workplace Michael Lacey, CEO/Pres. , Digineer, Plymouth, MN Timothy P. Keenan, President & Founder, HPTi, Reston, VA Oct 28 Open Book Management - NOT Just About Financial Transparency Rich Armstrong, President, The Great Game of Business Nov 10 Exemplary Practices of 2008 Top Small Workplace Winners Diane Stoneman, Director of Consulting and Training, & Mary Corbitt Clark, Executive Director, Winning

Save the Date • www. winningworkplaces. org/topsmallbiz/2008 confere Colleen Barrett, President of Southwest Airlines • Alan Murray, Executive Editor, The Wall Street nce Journal Online • Trish Karter, CEO/Cofounder, Dancing Deer Baking Company 2008 Top 20 Small Conference • Over other. Workplaces inspiring business leaders speaking October • Mid-America Club • Chicago on 14 -15, critical 2008 issues faced by small business

Thank You! www. winningworkplaces. org