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An open-door policy is a vital tool for business leaders who want to foster transparency, trust, and effective communication within their organizations.
When managed correctly, it can boost morale, improve collaboration, and increase productivity. However, it must be implemented thoughtfully to avoid potential pitfalls such as misuse, leader burnout, or undermining formal processes.
“One of the main things that leaders need is information to make decisions. So, an open-door policy is good in terms of acquiring information or getting the knowledge that you need,” says Professor Douglas Brown of the Faculty of Arts Department of Psychology at the University of Waterloo. “But then the downside is if you take the open-door policy too far that it potentially makes your employees less able to engage in problem solving themselves. Potentially, it creates a bottleneck in terms of decision making. If everyone's bringing every decision to you, you become essentially a choke point in getting things done.”
When employees feel that they can approach their leaders at any time for advice, feedback, or to voice concerns, it can lead to a high frequency of meetings or conversations, many of which may be trivial or not urgent.
Leaders may find themselves bogged down with constant disruptions, which can detract from their ability to focus on high-priority tasks. This not only affects their productivity but may lead to burnout, as leaders struggle to juggle management responsibilities with being constantly available.
Micromanaging can derail leaders
“Managers and leaders have their own jobs to do and if they're being inundated constantly with having to make all kinds of decisions in the short run then that's distracting them from doing things that are more strategic that need to get done,” says Professor Brown, adding delegating responsibilities is key for business leaders. “But one of the biggest derailers of managers is being a micromanager and being unable to delegate.”
When employees are constantly encouraged to approach their leader with every issue or concern, it can lead to dependency and over time, employees may begin to rely on their leader to make decisions for them, rather than fostering independence and critical thinking. This dependency can stifle innovation and initiative, as team members may not feel empowered to solve problems on their own.
Leaders may find themselves spending more time providing solutions to issues that their team should be capable of handling independently, leading to inefficiency and slower decision-making.
“So, is your open-door policy a symptom of something more problematic about your own leadership style?” asks Professor Brown, adding the first thing a leader should ask is if an open-door policy is working for them. “They have to reflect on information that they're getting themselves as well as through observing their teams. Do you feel stretched as an individual? Do you feel stressed out and is this a consequence of these constant interruptions that you're getting because you're being asked to make all kinds of small insignificant decisions?”
He says hybrid work situations can exacerbate the situation.
Clear boundaries needed
“I think in these virtual environments in many ways it's psychologically hard because you don't have control and information and so you have this level of uncertainty of what are people doing which makes it psychologically hard on you,” says Professor Brown, adding leaders must move away from the mentality that leadership isn’t about walking around keeping tabs on employees but creating structures that allow leaders to collect the information they need. “But you also can’t give people free control to do anything they want. It’s kind of a balancing act because you don’t want to completely rob people of their freedom and autonomy.”
To mitigate these risks, leaders should establish clear boundaries, encourage independent problem-solving, and ensure that they are still focusing on long-term strategic goals. With the right balance and structure, an open-door policy can be a powerful tool for fostering a healthy, communicative, and productive work environment.
Professor Brown says structural changes may be required to achieve a more productive environment.
“Maybe I don’t provide enough role clarity for people as a leader? Or maybe I’m very inconsistent in my delegation? Or maybe I have a decision-making process where everything must run through me?” he says. “Those are all structural things I think are easy to change if they accept this may be the source of the problem.”
How a business leader should effectively deal with an open-door policy:
Clearly define the policy Leaders should communicate the purpose of the policy—encouraging open communication, quick resolution of concerns, and building stronger relationships. It should also include guidelines on what types of issues are appropriate for open-door discussions (e.g., ideas, feedback, ethical concerns) and when more formal channels should be used (e.g., HR complaints or legal issues).
Maintain availability, but set boundaries Leaders need to strike a balance between being accessible and staying productive. While it’s important to be approachable, setting realistic boundaries around availability helps prevent disruptions. For example, a leader might designate specific times for walk-ins or encourage scheduling brief check-ins to manage time more effectively. This also signals that while the door is open, time and focus are respected on both sides.
Be fully present When employees do come through the door, leaders must give them their full attention. Listening actively and without judgment builds trust and encourages honest dialogue. It’s important to acknowledge concerns and follow up with appropriate actions. Even if the answer is “no” or change isn't possible, employees will appreciate transparency and sincerity.
Encourage a culture of communication An open-door policy should complement—not replace—a broader culture of communication. Leaders should regularly engage with employees at all levels, foster team dialogue, and promote peer-to-peer communication. Encouraging open dialogue in meetings, anonymous feedback channels, and regular one-on-ones can support the policy and make employees feel heard beyond just the “open door.”
Avoid micromanagement or bypassing hierarchies One challenge of an open-door policy is that it can unintentionally bypass middle managers or create confusion around decision-making authority. Leaders must reinforce the importance of chain-of-command and support managers rather than undercutting them. When appropriate, employees should be encouraged to resolve issues at the closest level before escalating them.
Act on feedback The effectiveness of an open-door policy depends heavily on what happens after the conversation. If employees regularly share concerns or ideas and nothing changes—or worse, there's retaliation—trust erodes quickly. Leaders should document key themes from conversations, follow up, and implement improvements where feasible. Even small changes based on employee input can reinforce the value of the policy.
Model openness and integrity Finally, leaders should model the values they want to see—honesty, humility, and openness to feedback. If leaders are defensive, dismissive, or inaccessible, the policy becomes symbolic rather than functional. Being authentic and approachable sets the tone for the entire organization. |
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When an entrepreneur starts a business, they often find themselves wearing many hats, often taking on such jobs as CEO, accountant, marketer, and even the IT technician.
However, trying to do everything yourself can take a toll on your mental and physical health – and, eventually, your business growth, which is why experts recommend outsourcing certain tasks.
“I think a lot of entrepreneurs think they don't have the money for it, or they feel like they can save money by doing it themselves,” says Carrie Thomas, founder, and CEO of Nimbus HR Solutions. “But all it takes is being tripped up one time over something, like an HR issue, and you realize you should be reaching out.”
One of the primary reasons businesses outsource is to save money since hiring full-time employees for every task can be costly, considering salaries, benefits, training, and office space.
But outsourcing allows businesses to tap into skilled professionals at a fraction of the cost which can lead to significant reductions in operational expenses, enabling companies to allocate resources more effectively.
Streamlined approach
As well, outsourcing non-core activities, businesses can focus on their core competencies, leading to increased efficiency and productivity. This can allow employees to devote more time to strategic initiatives, innovation, and revenue-generating activities rather than administrative or repetitive tasks. This streamlined approach ensures that key business functions run smoothly without unnecessary distractions.
“Having to outsource means you can have subject matter experts available to you for a fraction of the price, who can help you and kind of level up your business,” says Carrie, describing how finding an accountant to help handle finances was one of the first things she did when starting her company. “Maybe you have a bookkeeper do fractional CFO, or maybe you could do the books yourself but with guidance from an accountant?”
Outsourcing provides businesses with access to specialized expertise that may not be available in-house. Many outsourcing firms are dedicated to specific industries, meaning they have the latest knowledge, tools, and best practices.
Whether it's IT support, digital marketing, legal services, or customer service, outsourcing allows companies to leverage the expertise of professionals who excel in their respective fields.
Reach out to other business leaders
But finding the right sources can be difficult, which is why Carrie suggests entrepreneurs reach out to other business leaders for potential contacts and advice.
“For myself, I spoke to other business owners and asked them what accounting service did they us, or didn’t use,” she says. “This can be really valuable.”
Outsourcing, especially when chosen based solely on cost savings, can sometimes lead to subpar quality. Some vendors may cut corners, use less experienced staff, or fail to meet the company's expectations. As a result, quality could suffer and businesses may face customer dissatisfaction, negative brand perception, and even additional costs to correct errors or redo work.
When it comes to finding a potential outsource, Carrie says business leaders should treat the process as a job interview.
Choose reputable partners
“You’re interviewing them to be your partner in a certain component of your business,” she says. “So do the homework and ask those difficult questions. ‘Why did you lose a client?’, ‘What was your worst client situation and how did you handle it?’”
Carrie also recommends trying to stay away from using the services of friends or family when starting out in business.
“It’s so easy to go people we know. I think that’s OK to a point, but I think when you have family or people you know that are involved, it’s business and you don’t want to blur the lines,” she says. “If it becomes a business relationship, you have to be clear on what the expectations are and be clear on what the deliverables are and if they’re not, then you can have another conversation.”
To minimize potential downsides, companies should choose reputable outsourcing partners, establish clear contracts, and continuously monitor performance because a well-balanced approach can help businesses leverage outsourcing while avoiding its pitfalls.
Benefits of outsourcing
Cost Savings By outsourcing, companies can access skilled professionals at a lower cost, often in countries where labor expenses are significantly reduced. This allows businesses to allocate resources more effectively and invest in core operations.
Access to Global Talent Outsourcing enables businesses to tap into a global talent pool, ensuring access to highly skilled professionals without geographical limitations
Increased Efficiency and Focus on Core Activities By outsourcing non-core tasks, businesses can focus on their primary objectives and strategic goals. This leads to improved efficiency and a stronger competitive edge.
Scalability and Flexibility Outsourcing offers businesses the flexibility to scale operations up or down based on demand. This is especially beneficial for businesses with seasonal fluctuations or those experiencing rapid growth.
Access to Advanced Technology Many outsourcing providers invest in the latest technology, software, and tools to remain competitive. This is particularly valuable in areas like IT, cybersecurity, and digital marketing, where staying ahead in technology is crucial.
Risk Management and Compliance Outsourcing can help businesses mitigate risks, particularly in areas such as legal compliance, cybersecurity, and regulatory requirements. This is particularly important for businesses operating in highly regulated sectors like finance and healthcare.
When should a business outsource?
Overworked Employees and Decreased Productivity If your employees are constantly overburdened with tasks outside their core responsibilities, it may be a sign that outsourcing is needed. Overworked staff can lead to burnout, decreased morale, and lower productivity.
Rising Operational Costs Businesses looking to cut costs without compromising quality often turn to outsourcing. Hiring external specialists can reduce the need for in-house infrastructure and long-term employee commitments, leading to substantial savings.
Lack of In-House Expertise As businesses expand, they may require specialized skills that their existing team doesn’t possess. Outsourcing allows you to access top-tier professionals without the costs of recruitment, training, and salaries.
Declining Customer Satisfaction If customers are experiencing long wait times, poor service quality, or unresolved issues, it may be time to outsource customer support. Happy customers lead to repeat business and positive brand reputation.
Difficulty Scaling Operations For businesses experiencing rapid growth, scaling operations efficiently can be challenging. Whether it's manufacturing, logistics, or administrative support, outsourcing provides flexibility, allowing you to expand or downsize without major disruptions.
Falling Behind on Innovation and Strategy If your leadership team spends too much time managing routine administrative tasks instead of focusing on strategic growth, outsourcing is a logical solution. Non-core functions like bookkeeping, IT maintenance, and HR services can be outsourced, freeing up time for business leaders.
Compliance and Security Concerns Businesses operating in industries with strict regulatory requirements, such as healthcare and finance, must ensure compliance with laws and data security measures. Outsourcing to specialized firms with expertise in compliance and cybersecurity can help mitigate risks and prevent costly legal issues.
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In business, teamwork is more crucial than ever. When employees work together effectively, they not only enhance productivity but also foster innovation and create a positive work atmosphere.
For business leaders, inspiring employees to function as a cohesive unit requires a blend of vision, communication, interpersonal skills, and more importantly, the ability to identify when work is needed to ensure this cohesion is maintained.
“When you begin to notice more people are spending time talking about each other, rather than to each other, it’s a sign there is trouble on the team,” says leadership expert Julie Dupont of Reimagine Leadership, adding not all work colleagues are going to get along, despite the fact it creates a more positive working environment. “Ideally, they still need to respect each other and work together productively.”
She says a lack of trust plays a key part of creating an inefficient work situation as employees begin to direct more time and energy at protecting themselves, rather than focusing on doing their best work.
“They may start to spend all their time thinking ‘How am I going to say this in the meeting?’, rather than ‘How am I going to move this meeting forward?’,” says Julie. “When people aren’t on high impact teams or interested in their team’s success so much as they are protecting themselves, then you’re not getting the same level performance. That’s very inefficient and productivity and profitability suffers.”
Transparent communication
Inspiring employees to work as a team is in ongoing process that requires dedication, empathy, and strategic planning, especially at the beginning.
“If you’re lucky enough to build your team, you want to hire for those emotional intelligence skills right off the bat,” recommends Julie. “So often, when we’re looking at resumes, we look at all those technical skills and abilities and past experiences, but we’re not thinking about ‘Do they have the social skills to fit well on this team? Are they a pleasure to be around?’.”
Effective teamwork hinges on open and transparent communication and leaders should encourage a culture where team members feel comfortable sharing ideas, feedback, and concerns. Regular team meetings, open-door policies, and collaborative tools can facilitate better communication. Also, listening actively and valuing each member’s input not only improves decision-making but also builds trust and mutual respect among team members.
Julie encourages leaders to ensure their employees learn to ‘fight fair’ by giving them the skills they need to engage with each other proactively and productively.
“This can prevent the blowouts and the spread of underground toxins because you’re dealing with things and teaching them to deal with things right away, instead of noticing something that seems ‘off’ and ignoring it.”
Ongoing training important
Leadership is not just about giving orders; it’s about setting an example. When leaders demonstrate the values and behaviours they expect from their team, they build credibility and respect.
For instance, showing a collaborative spirit, being open to feedback, and displaying a strong work ethic can inspire employees to mirror these traits. Authenticity and consistency in actions are vital - employees are more likely to follow a leader who walks the talk.
This may require ongoing training for leaders, says Julie, noting there are many resources available to assist them in developing their leadership skills and that asking for feedback – either anonymously or via a third-party interview - is a great way to ensure they are on the right path.
“How are you perceived? How do people see you as a leader? What are those skills strengths you have that you should really leverage?” she says. “There are different ways to get the feedback safely and that’s going to be important.”
Key strategies to build an effective team:
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A large majority of Canadian businesses are sluggish when it comes to the adoption of Generative Artificial Intelligence (Gen AI), according to the results of a recent report by the Canadian Chamber of Commerce’s Business Data Lab (BDL).
The 38-page report details how a multitude of barriers, along with a lack of trust in the new technology, could impede the adoption levels needed to improve Canada’s economic growth.
Locally, the report shows that 11% of businesses in Kitchener-Waterloo and Cambridge are "using", or "planning to use" Gen AI, compared to 18% in Toronto or 15% in Ottawa.
The report, Prompting Productivity: Generative AI Adoption by Canadian Businesses, underscores how Gen AI (referring to Large Language Models bases and the practical applications built on top of them) can help tackle one of the most significant economic challenges facing Canadian prosperity and standard of life — low productivity — while also exploring what is holding Canadian businesses back from adopting AI technologies.
The results detailed in the report, compiled from a survey of 13,327 businesses in January and February of this year, shows that larger businesses are nearly twice as likely to adopt Gen AI compared to smaller businesses. Overall, the data shows that one in seven businesses (roughly 14%) – mostly larger businesses and industries with highly educated workers – are Gen AI adopters.
Patrick Gill, BDL's Senior Director of Operations and Partnerships, and the report's lead author, says he's surprised more small businesses haven't been embracing this new technology.
“I’ve never run into a small business owner who wasn’t run off their feet and wearing multiple hats or wish they could replicate themselves,” he says. “But that’s the nice thing about this tool. With little or at no cost a small business owner or team can leverage this to fill in some of their existing skills gaps.”
According to the report, the top three industries adopting AI includes information & culture (31%), professional services (28%), and finance and insurance (23%). The two lowest to adopt are agriculture, forestry, and fishing (8%) and construction (7%).
Building trust an issue
Patrick says historically, larger businesses usually face more barriers adopting new technologies due to the fact their operations are more complicated and often have technology ‘stacked’ on top of each other.
“Smaller businesses usually face less of a challenge,” he says. “Their biggest challenge has usually been ‘Do I have the money right now to invest in a new technology?.”
Besides potential costs, trust is also a key issue.
“Public trust and the perception of AI will definitely play a crucial role in the adoption of the technology going forward,” says Patrick, noting a survey released last year indicated that Canada was the third most pessimistic country in the world and that only 38% of Canadians view AI in a positive light, slightly ahead of those in the U.S. and France.
Patrick says the Business Data Lab report also indicates that people are nervous about what the adoption of Gen AI will mean for their jobs and notes most agree change will come in the way they conduct their jobs, versus losing them outright.
“Right now, the technology is predominantly being used to augment workers’ abilities and not to replace them entirely,” he says, adding many are looking at Gen AI as a tool that can accelerate production and improve quality and services in effort to reduce costs. “That’s incredibly important during this time of a high-cost operating environment.”
From a global perspective as interest in Gen AI continues to grow, the report indicates that Canadian businesses need to move fast to gain a competitive advantage over global competitors. Low productivity and business investment puts Canadians’ prosperity and living standards at risk and its GDP per capita is now significantly below the U.S. and the OECD (Organisation for Economic Co-operation and Development) average.
Businesses must ‘innovate or die’
“Gen AI is a generational opportunity to boost Canadian productivity at a time when our performance is steadily headed in the wrong direction. The time to prompt productivity and act is now. Canadian businesses must innovate or die, and that means embracing Gen AI,” says Patrick. “While adoption has begun in every industry, it’s likely not fast enough for Canada to be competitive on the global stage, especially since three in four Canadian businesses still haven’t tried Gen AI yet.”
Based on two adoption scenarios (“fast” and “slow”), the Canadian Chamber of Commerce’s BDL projects that Gen AI adoption by Canadian businesses will reach a tipping point of 50% in the next three to six years. This may seem fast but is probably not fast enough to keep pace with global leaders. Businesses in the U.S., China and several European countries are investing heavily in AI, likely outpacing Canadian investment.
“Those who move first basically set the standards and capture the largest market share,” says Patrick. “And everyone else is perennially playing catch up.”
He hopes the findings in the BDL report may gently ‘nudge’ businesses into more experimentation when it comes to adopting Gen AI.
“There are so many low costs and no cost options available, so experiment and give it a try,” says Patrick, explaining how AI can assist with creating emails, marketing, and promotional content, and well as new visuals. “Use and test it and eventually you’ll find a way.”
Click here to the read the report.
Key findings from the report
Recommendations for business
Innovate or die: Canadian businesses need to move fast to gain a competitive advantage over global competitors. With Gen AI so accessible and applicable for every type of business, there is little excuse for Canadian businesses to sit on the sidelines.
Pilot projects that measure uplift: Start with small pilot projects to validate the feasibility and impact of Gen AI. Compare metrics (e.g., efficiency, costs savings and revenue generation) before and after its implementation.
Change management and employee training: Prepare employees for the adoption of Gen AI. Provide training sessions, workshops, and resources to help them understand the technology and develop new workflows.
Strategic alignment: Align Gen AI adoption with overall strategic goals. Identify where Gen AI can enhance existing processes, improve customer experience, or drive innovation.
Data infrastructure and governance: Invest in robust data infrastructure and governance practices. High-quality data is essential for training Gen AI models. Ensure data privacy, security, and compliance.
Talent acquisition and retention: Attract and retain talent skilled in Gen AI. Recruit data scientists, machine learning engineers and domain experts who can develop and deploy Gen AI solutions.
Investment in cloud infrastructure: Leverage cloud platforms for scalable computing power. Cloud services facilitate model training, deployment, and maintenance, allowing businesses to experiment and iterate efficiently.
Leverage public resources: Move faster by basing policies on the federal government’s Guide on the use of Gen AI or tapping available funding, such as the NRC’s (National Research Council of Canada) IRAP AI Assist Program. |
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The health and well-being of its operator or owner is a critical, yet often overlooked element in the day-to-day operations any business. Many small and medium-sized enterprises (SMEs) and even some larger businesses hinge on the vision, leadership, and daily involvement of their owners.
But what happens if the owner suddenly falls ill and is unable to fulfill their role? It’s a situation, says Linda Braga, that many business owners do not think about.
“It’s not even at the forefront,” says Linda, Business & Executive Development Specialist with LMI Canada, which has provided leadership development for more than 50 years. “I think there is a real lack of awareness because no one wants to think about facing an imminent illness.”
In fact, according to a recent StatCan figure, only 15% of business owners actually have a contingency plan in place for themselves in the event of illness.
“That’s very surprising,” says Linda. “In light of what happened with the pandemic and contingency planning, it is something that leaders should have in place.”
A contingency plan serves as a blueprint for maintaining operations when the owner is incapacitated. It outlines clear procedures and assigns responsibilities to other key team members to ensure that the business continues to run smoothly. This foresight helps prevent disruptions that can lead to lost revenue, decreased customer satisfaction, and potential long-term damage to the company’s reputation.
Demonstrating resiliency
“We know that in leadership resilience is the theme and having a contingency plan is just demonstrating a company’s resilience to ensure that they are not going to be impacted in a negative way,” says Linda, adding that for many leaders, their business is essentially their ‘babies’. “Wouldn’t you want to ensure if something happens that it is going to be taken care of?”
She believes fear of showing any vulnerability is not necessarily the reason many business leaders appear to be hesitant to put plans in place, but pertains more to a time management issue.
“They are just so busy with everything that they’re doing. It’s not their priority,” says Linda, adding some fully trust their team will be there to ensure the business continues to smoothly operate and leave no plan in place. “They have to realize when it’s not written in stone or a procedure that’s written out it can create ambiguity and lead to decision paralysis with the leaders and management that’s left behind.”
She says knowing there is a plan in place can significantly reduce stress and anxiety for the owner, their family, and the entire organization. It provides peace of mind that the business can withstand unforeseen challenges, allowing everyone to focus on recovery and continuity rather than crisis management.
“If you’re dealing with an emergency, why would you want to add any additional stress?” says Linda. “All of your top-level management should have a contingency plan in place.”
By preparing for the unexpected, businesses can safeguard their operations, protect their stakeholders, and ensure long-term sustainability. Every business, regardless of size, should invest time and resources into developing a robust contingency plan, securing its future against looming uncertainties.
Preparing for a scenario where the business owner suddenly falls ill and must take a leave of absence is crucial for ensuring the continuity and stability of the business. Here are several strategies a business can implement to be well-prepared for such a situation:
1. Develop a Comprehensive Succession Plan This involves identifying key personnel who can step in temporarily and ensuring they are adequately trained. The plan should include:
2. Document Key Processes and Procedures Having detailed documentation of all critical business processes is essential. This should include:
3. Implement Robust Communication Systems Ensure there are systems in place for seamless internal and external communication:
4. Leverage Technology Utilize technology to maintain business operations smoothly:
5. Financial Preparedness Ensure the business is financially prepared to handle the owner’s absence:
6. Legal and Administrative Measures Take care of legal and administrative preparations:
7. Training and Development Invest in continuous training and development of employees:
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Dealing with toxicity in the workplace can be detrimental to employee morale, productivity, and overall organizational success.
For business leaders, addressing this issue requires a combination of empathy, clear communication, and proactive measures to foster a more positive and supportive work environment.
“Ultimately, it’s going to affect your bottom line because you’re going to spend a ton of money on recruiting talent because you’re going to have a revolving door,” says Carrie Thomas, a human resources expert and founder of Nimbus HR Solutions Group.
It's essential to identify the root causes of toxicity within the workplace. It can stem from various sources, such as authoritarian leadership styles, irresponsible behaviour of employees and managers, unrealistic performance expectations, lack of transparency, or a history of punitive actions. By understanding the underlying factors contributing to fear, leaders can develop targeted strategies to address them effectively.
“You have to find a balance. How do you maintain your employees and give them some input on things?” says Carrie. “But that’s where trust comes from. Change comes from the speed of trust.”
Address issues promptly
However, finding that trust can be difficult when leaders are faced with challenging issues surrounding time theft and absenteeism, especially after many businesses introduced hybrid work schedules. Employers must address these issues promptly and effectively to maintain a healthy work environment and ensure the smooth functioning of their operations.
“You have to nip the bad behaviour in the bud,” says Carrie, noting that inaction can easily demoralize other employees. “You can put policies in place because if one person burns that bridge it’s going to make it crummy for everyone else and the leader will have to deal with it.”
To offset potential issues that can lead to a toxic environment, she recommends leaders take a closer examination of the work culture which may require immediate attention and says creating an employee engagement survey can be a good starting point.
“If employees chose not to answer, that immediately tells me you have a culture of fear in your workplace because they don’t want to speak up,” says Carrie, adding in this situation HR assistance may likely be required. “But you have to ensure the HR person can handle the situation in a confidential and professional manner that follows the rules on how you handle an investigation or a complaint because there are laws pertaining to no retaliation.”
As well, she also suggests leaders visit the work review site Glassdoor to get a sense of what may be taking place at their company.
Good mechanisms needed
“I remember saying at the beginning of COVID, the businesses that will come through this is because their success in retaining people will solely be based on how they treated their staff during the pandemic,” says Carrie. “So, there are a lot of employers right now saying they can’t find anyone. But if you weren’t kind to your employees then, nobody will want to work for you. I call it the ‘tainted talent pool’. If people see a job continuously posted, they’re not going to want to touch it.”
She notes the ‘new’ generation of employees in the field are not apt to remaining in a job if they deem the work environment as toxic.
“Sometimes they may try and discuss their issues once, or even twice, with an employer but if they see no change, then they’re gone,” says Carrie, adding addressing concerns is imperative for leaders.
As well, she says having good mechanisms in place such as weekly one on one meetings are good vehicles to diffuse potential issues before they start affecting the entire team, especially when others may see their co-workers not adhering to the rules.
“I always say leadership is a shared responsibility,” says Carrie, adding ‘skip level’ meetings with a higher level of management may also be required to solve some of these issues. “But this falls in line with an open-door policy and being honest and transparent.”
A few key issues business leaders may encounter when dealing with a toxic work environment:
Decreased Employee Morale and Engagement: Toxic work environments can lead to decreased morale and disengagement among employees. This can manifest as increased absenteeism, lower productivity, and higher turnover rates, all of which can have a negative impact on the company's bottom line.
Negative Organizational Culture: Toxicity often stems from underlying cultural issues within the organization. Changing entrenched cultural norms and behaviors can be difficult and requires sustained effort from leadership to promote a more positive and inclusive culture.
Legal and Reputational Risks: Inappropriate behaviour such as harassment or discrimination can expose the company to legal liability and damage its reputation. Leaders must take swift and decisive action to address such issues and prevent them from escalating.
Loss of Talent: Talented employees may choose to leave the organization if they feel unsupported or mistreated in a toxic work environment. Losing key talent can disrupt business operations and hinder long-term growth and success.
Difficulty Attracting New Talent: A reputation for being a toxic workplace can make it challenging to attract top talent. Potential candidates may be wary of joining a company with a negative work environment, leading to difficulties in recruiting skilled individuals.
Impact on Leadership Credibility: Leaders who fail to address issues related to toxicity may lose credibility and trust among their employees. This can undermine their ability to lead effectively and diminish their influence within the organization.
Productivity Loss: Toxic work environments can impede productivity as employees may be preoccupied with workplace conflicts or feel demotivated to perform their best. This can result in missed deadlines, decreased quality of work, and ultimately, reduced profitability for the company.
Resistance to Change: Addressing toxicity often requires implementing changes to organizational policies, procedures, and cultural norms. Resistance to change from employees who are comfortable with the status quo can hinder efforts to create a healthier work environment.
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In the dynamic landscape of modern business, where competition is fierce and innovation is paramount, the role of effective leadership cannot be overstated. Among the many responsibilities of business leaders, one crucial aspect often stands out: conducting performance management reviews. These periodic evaluations of employee performance are not merely administrative tasks but essential components of a thriving organizational culture.
“People really need to have those conversations because quite often they’re operating in a vacuum,” says Debra Burke, Head of Client Success at HR2 Business Solutions, adding most people believe they are doing a good job and take pride in their work. "And in the absence of any feedback to the contrary, they go about their merry way with that. But you just can’t come around and surprise people afterwards if you haven’t had those conversation with them.”
Performance management reviews provide a structured mechanism for evaluating employee contributions and aligning them with organizational goals. By assessing individual performance against predefined objectives, leaders can gauge the effectiveness of their workforce in driving the company's mission forward.
This evaluation helps identify high performers who deserve recognition and rewards, as well as areas where improvement or additional support may be needed. Such insights enable leaders to make informed decisions regarding talent development, resource allocation, and strategic planning.
But how a manager or leader initiates the process should be done in a positive way, says Debra.
“When you say, ‘performance review’, sometimes I feel we can go down a negative road,” she says. “It has mixed messages for people, especially those who have had really bad experiences with those kinds of things. I prefer performance conversations.”
Setting clear expectations vital
Debra believes that employees want a clear understanding of how their performance is being viewed, especially when it may relate to compensation or promotions, and when they know that their work will be evaluated regularly and objectively, they are more likely to stay focused, motivated, and committed to achieving excellence.
By setting clear expectations and providing constructive feedback, leaders empower their teams to take ownership of their roles and strive for continuous improvement. This culture of accountability not only enhances individual performance but also cultivates a sense of trust and camaraderie among colleagues.
“Having those conversations is absolutely critical and managers and leaders need to get better at them because to be honest, many are not,” says Debra, adding some may lack the necessary training. “When you become a manager or move into a leadership role, it’s certainly not everyone’s forte to be very adept at having those difficult conversations.”
She says it’s easy to offer praise, but that performance conversations can be much more nuanced when it comes to outlining potential strengths and weaknesses.
“At a minimum, the conversation should be about growth and where you want the role to grow and how do you help guide and mentor them, and what path they should be on,” says Debra. “A lot of times, the problem with people who don’t have performance conversations at all is that they don’t know what the expectations are, so there is a big gap or void, and they may not find out until it’s too late and a termination may be involved.”
Managers and leaders too busy
She recommends ongoing performance conversations can be far more effective and beneficial – especially for managers - rather than scheduling annual or even quarterly meetings.
“The No. 1 reason performance conversations are avoided is because managers and leaders are just too busy, especially if they take this on as a once-a-year project. Even half year or quarterly meetings can suddenly become a time management issue,” she says. “If you’re giving feedback on performance on a regular basis, where people are being guided and informed, it’s not a big scary thing. Even when there might be poor performance involved, you can accomplish it in ways where people are really receptive to it.”
Debra says a conversational approach can take a lot of the problematic parts out of the process for the leaders as well as the individuals, providing it’s done in a compassionate and empathetic manner.
“There should be some element of careful language and the potential for opportunities to help because sometimes you might have to provide feedback to someone who won’t have the skills set to make those changes unless you actually help put those things in place for them,” she says, adding there are tools available to help leaders who may not have the natural ability to have those difficult conversations. “I feel like conversations don’t happen as easily and as compassionately, or maybe as kind as they used to.”
Tips for business leaders to enhance their performance management practices:
Set Clear Expectations: Clearly define performance expectations for each role within the organization. This includes outlining key responsibilities, goals, and performance indicators. When expectations are transparent, employees understand what is expected of them, leading to better performance outcomes.
Regular Feedback: Provide regular and constructive feedback to employees regarding their performance. Feedback should be specific, timely, and focused on both strengths and areas for improvement. Encourage open communication and dialogue to address any concerns and provide support for development.
Goal Setting: Collaboratively set SMART (Specific, Measurable, Achievable, Relevant, Time-bound) goals with employees to align individual objectives with organizational goals. Regularly review progress towards these goals and adjust as necessary to ensure they remain relevant and achievable.
Performance Reviews: Conduct periodic performance reviews to assess employee progress, provide feedback, and identify development opportunities. Performance reviews should be conducted in a supportive and objective manner, focusing on accomplishments, challenges, and future goals.
Recognition and Rewards: Recognize and reward employees for their contributions and achievements. This can take the form of monetary incentives, promotions, or simply verbal recognition. Acknowledging employee efforts boosts morale and motivation, leading to increased engagement and productivity.
Training and Development: Provide opportunities for continuous learning and growth to empower employees to reach their full potential. Development initiatives should be aligned with both individual and organizational goals.
Performance Improvement Plans: When performance falls below expectations, work collaboratively with employees to develop performance improvement plans. Clearly outline areas for improvement, set measurable goals, and provide support and resources to facilitate progress. Monitor performance closely and provide ongoing feedback and coaching throughout the improvement process.
Data-Driven Insights: Utilize data and analytics to gain insights into employee performance trends and patterns. Analyzing performance metrics can help identify areas of strength and weakness, inform decision-making, and drive continuous improvement efforts.
Employee Engagement: Foster a culture of employee engagement and empowerment by involving employees in decision-making processes, soliciting feedback, and recognizing their contributions. Engaged employees are more committed, motivated, and likely to perform at their best.
Continuous Monitoring and Adaptation: Regularly review and refine performance management strategies based on feedback, evolving business needs, and industry trends to ensure effectiveness and relevance.
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The weight of responsibility can be overwhelming for business leaders.
They are constantly under pressure to drive growth, manage teams, make critical decisions, and ensure their organizations’ long-term success, which is something Debra Burke, Head of Client Success at H2R Business Solutions says has only been magnified in the recent years.
“Since the pandemic, some things have really changed. They changed during the pandemic and somewhat again since then,” she says, referring to a rise in negative conflicts which can lead to a toxic environment and even workplace investigations.
“We’re seeing an unbelievable amount of those kinds of problems coming into play in organizations and have leaders coming to us because they’ve never had to deal with them before but are dealing with them much more often.”
She says employees have become more empowered with information, and that many are dealing with mental health issues and feeling ‘angry’.
“They may not be working with the same expectations in their jobs that they used to and for some people, there are more challenges as they deal with downsizing, and shifts,” says Debra, adding bigger workloads, and hybrid work situations could be adding to these stresses since they may no longer ‘align’ with what an employee wants.
As a result, she says many leaders are now seeing more employees who are willing to take employers to court, or a human rights tribunal, or filing a report with the Ministry of Labour.
“Leaders who may never really had many people issues to deal with are now finding they are faced with all kinds of these things just to keep the business going,” says Debra.
She says the challenges can vary between the several generations of employees that are now in the workplace, noting there are still many benefits of having a multi-generational workforce despite potential issues.
Leadership can be isolating
“For a leader, becoming someone who has to manage all these things that come to play and the nuances and potential conflicts, plus the lack of time and resources, it’s very challenging,” says Debra. “When someone says being a leader can be a very isolating place, they are not wrong.”
She says leaders must first watch for warning signs and realize they don’t have all the answers.
As the demands of leadership continue to mount, it is vital for leaders to discover effective strategies to ease their burden and navigate their roles successfully, which Debra says can start with better communication.
“As a leader, you have to get comfortable with communicating. Employees want messaging and they want to hear it from the owner, CEO, or an executive,” she says, adding that a communication breakdown is often the key cause of any conflict, and that lack of management training could be the root cause. “When you do a job well and get promoted to management, that doesn’t necessarily mean you’re going to be a good people manager.”
As well, Debra says leaders can benefit from expert support from others who may have experienced the same issues they are facing, even those outside of a leader’s particular industry.
“I’m not a big fan of coaching for your own industry. You can receive a lot of benefits from working with a diverse support group,” she says. “Even if you feel like you’re an introvert CEO or leader, you might be really surprised how much that support is going to mean to you.”
And while some companies and industries are dealing with tight budgets, Debra says investing in training can pay off big time for a leader professionally and personally, as well as the organization.
“Those things are going to trickle down through an organization in powerful and impactful ways,” she says.
Several strategies to lighten the burden of leadership
Delegation and empowerment Many leaders fall into the trap of trying to do everything themselves, fearing that no one else can handle the responsibilities as well. However, effective delegation distributes the workload and fosters team development and growth. By entrusting capable team members with tasks and responsibilities, leaders can free up valuable time and mental energy to focus on strategic decision-making and higher-priority matters. Delegation is not just about offloading tasks but also about giving team members the opportunity to contribute and grow.
Building a support system Establishing a support system of mentors, advisors, or fellow business leaders can provide valuable guidance and emotional support. Sharing experiences and seeking advice from those who have faced similar challenges can be invaluable. Additionally, leaders should foster a culture of open communication within their organizations. Encouraging team members to share their thoughts and concerns can lead to more collaborative problem-solving and reduce the burden on the leader.
Embracing technology and automation Automation can handle routine tasks, data analysis, and reporting, allowing leaders to focus on strategic initiatives. Investing in technology solutions that align with the organization’s goals and processes can significantly reduce the administrative burden on leaders. Moreover, data-driven insights can aid in making informed decisions and staying ahead of market trends.
Setting realistic goals and expectations While ambition is essential, setting achievable goals and expectations is equally crucial. Unrealistic targets can lead to stress and burnout, as well as erode team morale. Leaders should work with their teams to establish realistic objectives and timelines. This approach fosters a sense of accomplishment and helps prevent the exhaustion that can result from chasing unattainable goals.
Continuous learning and development Continuous learning and professional development are essential for effective leadership. Leaders should invest in their own growth by attending seminars, workshops, and courses relevant to their industry. Also, encouraging team members to pursue their own professional development can contribute to the organization’s success and ease the burden on leaders.
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In the changing landscape of business, where uncertainty and rapid change are constants, effective leaders must adeptly manage chaos to ensure organizational resilience and success.
Navigating through tumultuous times requires a strategic and agile approach, says Linda Braga, Business & Executive Development Specialist with LMI Canada, which has provided leadership development for more than 50 years.
“I think there’s still a lot of uncertainty out there,” she says, referring to issues that now exist in workplaces surrounding remote working, labour shortages and retention. “I think leaders are still adapting to managing the workplace and the whole side of leading and actually developing their people because we are successful through our people.”
Unfortunately, Linda says developing employees now often takes a ‘backseat’ as company leaders navigate these issues, some of which have been magnified by major shifts in the workplace.
“There are four generations in the workplace right now and each come with different attitudes and different viewpoints,” she says, noting older employees prefer having that ‘physical’ presence in the office while younger ones are looking for more of a ‘social’ connection. “It’s about leaders being flexible and adaptable, and having more of an open mind to solicit feedback from their people. Empathy is huge right now.”
However, this could prove to be difficult considering statistics show that at least 60% of small and medium-sized businesses owners are aged 50 or older and many will soon be leaving their companies, making it harder for some to adapt to these dramatic workplace shifts before they retire.
Self-care important
To manage the chaos effectively, Linda leaders should first look at how they manage and lead themselves.
“I think it’s important they are able to put on their own oxygen masks first because they’re very busy dealing with the day to day trying to keep their companies running and keeping their employees happy,” she says, adding ‘self-care’ is something they should take seriously.
Linda says often leaders have difficulty asking for assistance, especially from their employees.
“Just because you’re a leader or manager, or a company owner, doesn’t necessarily mean you have all the answers and know everything,” she says. “That’s what I feel separates really good leaders from managers is that they empower their people.” As well, when it comes navigating uncertainty and rapid change, setting goals is key for leaders.
“It’s important for our leaders and managers to have crystal clear goals, which they need to communicate,” says Linda, noting there is a big difference between efficiency and effectiveness. “They can be really good at being effective and doing things the right way. But are they doing the right things? Even as a leader, are you hitting your own goals? All leaders should be able to look at themselves in a mirror and be self-aware.”
Some key methods for business leaders to manage chaos:
Develop a Resilient Mindset: Successful leaders should acknowledge that change is inevitable, viewing challenges as opportunities for growth rather than insurmountable obstacles. Embracing uncertainty allows leaders to respond with flexibility and creativity.
Establish Clear Communication Channels: Leaders must provide regular updates, share relevant information, and foster a culture of open dialogue. Clear communication helps employees understand the situation, reduces anxiety, and builds trust in leadership.
Prioritize and Delegate Effectively: Leaders must prioritize activities based on their impact on the organization's core objectives. Delegating responsibilities to capable team members ensures that tasks are handled efficiently, preventing overwhelm at the leadership level.
Encourage Adaptability: Business leaders should encourage employees to embrace change, learn new skills, and remain agile in the face of uncertainty. An adaptable workforce is better equipped to navigate chaos and contribute to innovative solutions.
Invest in Technology and Automation: Leveraging technology and automation can streamline processes and enhance organizational efficiency. Implementing digital solutions allows businesses to adapt quickly to changing circumstances and minimizes the disruptions caused by chaotic events.
Build a Diverse and Inclusive Team: A diverse team brings varied perspectives and skills to the table, enhancing the organization's ability to address challenges creatively. Inclusion fosters a collaborative environment where team members feel valued, increasing their commitment to overcoming chaos together.
Conduct Scenario Planning: Business leaders should engage in proactive scenario planning to anticipate potential challenges and devise strategies to address them. This foresight enables quicker and more effective responses when chaos unfolds, reducing the negative impact on the business.
Cultivate Emotional Intelligence: Leaders with high emotional intelligence can navigate uncertainty with empathy, providing support to their team members and maintaining a positive organizational culture.
Learn from Mistakes: Successful leaders acknowledge mistakes, learn from them, and apply those lessons to improve future decision-making. This adaptive learning approach contributes to organizational resilience.
Strategic Resource Allocation: Business leaders must strategically allocate financial, human, and technological resources to areas that will have the most significant impact on maintaining stability and achieving long-term objectives. |
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While running a business, it's easy to get caught up in the complexities of the day-to-day operations surrounding production, quality control, and supply chain management.
However, one aspect that often takes a back seat but is equally crucial to success is customer service. Exceptional customer service is a critical component of operating a business and providing employees with the right training is essential to meet and exceed customer expectations.
“If people are not well trained, that’s going to have an impact,” says Frank Newman, owner of Newman Human Resources Consulting. “There are a lot of opportunities for people to go through formal customer service training and we know that makes such a huge difference.”
Customer service is not just a necessary requirement but a strategic investment that can assist businesses – in all sectors – the opportunity to build lasting relationships, foster loyalty, and ultimately, drive long-term success.
Acknowledging clients
“You really want to drive home a customer service mentality in all your staff because every sale is important,” says Frank, adding giving employees the autonomy to make decisions benefits the customer experience. “It takes away the frustration for the consumer or client, so they don’t have to wait for a customer rep to go see a manager.”
As well, he says acknowledging a client or customer – perhaps with a thank you card or phone call - after the transaction has been completed can also go a long way to building professional relationships.
“The follow through is very important to show how you go above and beyond in your business,” says Frank, noting even having an employee answer the phone rather than an automated system can make a noticeable difference. “Ultimately, you want to surprise and delight your customer and offer them a little bit of the unexpected, especially in an era when so much customer service is you pick up the phone and wade through five different phone menus.”
Unique experience
He says differentiation and creating a unique experience are important.
He says developing a customer service training program doesn’t have to centre on videos and that assigning a ‘mentor’ to assist new employees navigate the workplace can be a benefit.
“The other thing to think about as you bring new people onboard is to provide them with stories featuring examples of great customer service,” says Frank. “Sometimes, the best way to train someone is often through storytelling. People learn by examples.”
The Essentials of Customer Service Training
Benefits of Effective Customer Service Training
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