Diversity, equity, and inclusion (DEI) has become a hot topic in today’s workplace due to the benefits and opportunities that diversity provides for innovation, creativity, profitability, culture, and bias reduction. In a 2021 meta-analysis of diversity’s effects on the workplace, Ceren Ozgen discovered that ethnic, gender, and educational diversity can promote innovation, creativity, and economic benefits. Other resources, such as the Western Governors University of Texas, communicate that the benefits of diversity include increased productivity levels and improved workplace cultures (WGU, 2019). Furthermore, research done by Sean Darling-Hammond, Randy T. Lee, and Rodolfo Mendoza-Denton suggests that having racially diverse employees reduces employees’ propensity to engage in racial bias (2021). Because of the wide-ranging benefits DEI offers, this Diversity Resource Guide has been created to shed light on how companies worldwide have developed and embraced diversity, so you—and your clients—can too. “Diversity is the engine of invention. It generates creativity that enriches the world.” - Justin Trudeau Workplace diversity programs According to a study by McKinsey and Company, companies in the top quartile for being “ethnically diverse” are 35% more likely to outperform companies with less ethnic diversity. They also found that “companies in the top quartile for gender diversity are 15% more likely to have financial returns above their respective national industry medians.” In the United States specifically, McKinsey and Company found that “for every 10 percent increase in racial and ethnic diversity on the senior-executive team, earnings before interest and tax rise by 0.8%.” Their research suggests that “diversity is a competitive differentiator” (Hunt et al., 2015). Furthermore, research from the Academy of Management has indicated that “lower-management racial diversity positively impacts firm productivity” (Richard et al., 2021). One way that employers can harness the power of DEI is through the implementation of workplace diversity programs. While this is only a stepping stone on the path to a diverse workplace, according to Leah Kyaio of BenefitsPRO, training programs that encourage discussion and accountability, give employees tools for DEI, and span over a long period of time can be effective methods of DEI implementation (2021). The following programs are only a few examples of those available but are the most scientifically-based and widely-supported we have found currently available. Exude Exude’s diversity and inclusion training program focuses on four “core behaviors”: Being self-aware, Being inclusive, Being well, and; Being accountable. Their training programs can be done virtually or in person, both in large and small groups. One key feature of Exude’s training program is the pre- and post-communication recommended between the trainer and trainee. They provide a diversity survey to help business leaders know “where to start or how to continue” with their “diversity and inclusion initiatives.” Exude’s training program is flexible and acknowledges the differences between trainers and trainees. Their training is focused on interactive and activity-oriented activities that provide reference for use in the workplace. DEI consultant, Leah Kyaio, states in her 2021 publication that “effective training must include time to dialog... as well as time to practice and apply the tools” learned during DEI training. Exude incorporates both of these important factors into their DEI training program. HRDQ Diversity Works HRDQ Diversity Works has been considered to be one of the best diversity programs by several outside sources including The Balance and Business News Daily (Treece, 2021 & Sabih 2021). Diversity Works offers business leaders an “interactive exploration into diversity awareness” that uses “the science of learning to create opportunities” for genuine conversations about diversity and inclusion. Diversity Works focuses on three learning categories: Understanding self, Understanding others, and; Communication. In their program, learning stations are set up around a room and training participants are allowed to select which training activities they participate in. HRDQ’s training methods closely align with Scott Smith’s statement in his 2017 paper “Adult Learners: Effective Training Methods.” Smith states that “Adult learners do not want to be taught. They want to play a part and need to perceive training as something that will improve them as individuals” (2017). One key feature that makes HRDQ Diversity Works particularly impactful is the opportunity for training participants to interact with each other. In one case study provided by HRDQ, a trainee stated, “I felt safe enough in this environment to share my personal experiences… when others shared their personal experiences, this helped me consider different perspectives and learn to be more open-minded.” MESH MESH offers training programs that are based on “science-based metrics” regarding “safety and inclusion.” They use live training sessions and assessments to quantifiably assess the improvement of trainees’ and their organization’s diversity and inclusion perspective. These assessments can be used to “accurately measure progress towards” diversity and inclusion goals. Several successful organizations use MESH training programs including Habitat for Humanity and Silicon Valley Bank. Julia Deans, President and CEO at Habitat for Humanity Canada, states in her review of Mesh DEI training, “Our partnership with MESH has given us the ability to move beyond talk and use a proven strategy to implement anti-oppressive change across our organization. With its decades of D&I expertise, backed by cutting-edge data science and well-honed inclusion metrics, and its ability to deliver complex and difficult messages in a clear and supportive manner, MESH is helping us fulfill our mission of strengthening families and building up communities.” One of the factors that makes MESH unique is its extensive use of data which measures several variables such as “self-acceptance,” “problem-solving,” “rapport,” and “integrity” for both the group and individual. The training is based on individual scores on their DEI assessment which can help adult learners establish what they need to learn and how they can learn it through the training course. In 2020, Chapman University, released an article about their own “roadmap” to greater DEI. Their faculty supports the use of training that is “agile, adaptable, useful, and targeted” to the needs of trainees (Chapman University, 2020). MESH’s DEI training program is directly targeted to the needs of its trainees with the use of a DEI assessment. Chapman University faculty also request that “educational efforts” are “tracked and analyzed.” This request is also completed by MESH through their use and measurement of individual and group inclusion metrics. “Greater diversity drives better business results.” - Sallie Krawcheck Society of Human Resource Management: “Inclusive Workplace Culture: Leading and Sustaining a Culture Transformation” The Society of Human Resource Management (SHRM) has released a team training and development course called “Inclusive Workplace Culture: Leading and Sustaining a Culture Transformation.” This program includes 4 modules which can be completed in 2 days in person or 4 weeks virtually. They structure their training around scenario and discussion-based learnings about the “characteristics and impact of an inclusive workplace.” The training program discusses “what an inclusive workplace culture is, why it matters, and how to develop one” as well as the “tools and techniques to foster a positive culture of inclusion.” SHRM claims that this training helps “empower employees to take ownership of fostering a positive workplace culture,” “decrease staff turnover,” and “identify a technique to create, maintain, and measure an inclusive workplace.” A unique feature of this training is that all live online training sessions are recorded and available for review a full year after the training concludes. TrainingIndustry.com shares several reviews of the training program, all of which are 5 out of 5 stars. One review states that “Dr. P [the course conductor] was insightful and open with a transparency everyone can appreciate. He relates the information to real-life scenarios which make the content easy to understand. Attendees will leave the course wanting to create the most diverse and inclusive workplace culture possible.” Compliance Training Group The Compliance Training Group was rated as the runner-up for the best overall diversity training program in 2021 by The Balance Small Business. They were chosen because of their “diversity and sensitivity training programs that are specifically geared toward employees and supervisors.” Their training programs are affordable and accessible 24-hours a day. Furthermore, each training lasts only 1 hour for employees and 90 minutes for supervisors (Treece, 2021). The Compliance Training Group offers training in several areas of DEI including essential concepts, unconscious bias, sensitivity, workshops. The Compliance Training Group has also been certified by the Human Resources Certification Institute, The State Bar of California, Illinois, and New York, the Society of Human Resource Management, U.S. Small Business Administration, National Minority Supplier Development Council, and several other organizations. The course options by Compliance Training Group are a great option because of their flexibility, short completion times, and inclusion of discussion opportunities, which according to research by Andrew Booth, is a key component of the retainment of information and new knowledge (2007). Center for Creative Leadership The Center for Creative Leadership (CCL) has a unique approach to DEI training and considers equity to be a critical component in their training. Because of this, they consider their training to be EDI training: equity, diversity, and inclusion. They state that “leading with equity is about recognizing that different people have different needs and being committed to giving people what they need to succeed. When that happens, everyone wins.” They use the “REAL framework” in their training. This framework focuses on: Revealing relevant opportunities and “identifying specific actions with curiosity and appreciative inquiry” Elevating equity with “fair and contextually-appropriate access to resources and opportunities Activating diversity by acknowledging, celebrating, and catalyzing differences Leading inclusively to “create and sustain an environment that supports direction, alignment, and commitment from everyone” in an organization A unique feature of CCL’s training is their ability to create custom EDI (or DEI) programs based on an organization’s unique “needs, context, and culture.” They also have other options for training such as “Better Conversations Every Day for Equity, Diversity, & Inclusion,” and “Leadership Topic Modules” about bias, listening, and emotional intelligence. DEI Certification Programs While workplace training programs are helpful for the establishment and maintenance of DEI practices, executives and business leaders are not exempt from embracing DEI education. According to research by Eddy NG and Greg Sears, CEOs’ beliefs and behaviors regarding DEI affect how HR managers implement DEI policies (NG & Sears, 2018). Because of this, we suggest additional training and certification programs in DEI for CEOs, executives, and other business leaders. AMA Diversity and Inclusion The American Management Association (AMA), certified by the International Association for Continuing Education and Training, has a Diversity and Inclusion Certificate Program that helps leaders to “build skills to lead and foster diversity and inclusion.” The program can be used in a classroom setting, online, or as a corporate-wide program. The program is 3 days long and focuses on teaching the “uniqueness and multidimensional aspects of individual identity,” understanding “biases on a deeper level,” and exploring “behaviors that promote trust” within corporate culture. Topics covered in the training include learning how the brain “processes information” and creates biases, conflict management, communication, creating inclusive meetings, and real-world application. At the end of the training program, participants receive a certificate from the American Management Association. eCornell This program is 100% virtual and has 2 weeks’ worth of training spread across 2 months. In this program, trainees will “assess and improve employee engagement levels,” “recognize unconscious bias,” learn why “diversity matters,” and learn how to improve “psychological safety” in their organizations. Throughout the training session, several psychological concepts and studies are discussed including the famous Jane Elliot’s Brown Eyes vs. Blue Eyes experiment (Coleman, 2019). After training, participants receive a “Diversity and Inclusion Certificate from Cornell ILR School” and “32 professional development hours.” Institute for Diversity Certification The Institute for Diversity Certification, IDC, has a few options for diversity-centered programs: Certified Diversity Professional (CDP) which focuses on the foundations of DEI, benefits of DEI, Equal Employment Opportunity Laws globally, harassment prevention, diversity recruiting, retention, training, discussion tools, resources, and many other key competencies. Certified Diversity Executive (CDE) which focuses on personal awareness, stakeholder communication, benefits of DEI, global and large scale diversity efforts, boardroom and supplier diversity, and unconscious bias, among other concepts. Artificial and Machine Bias Prevention (AMBP) which specifically focuses on artificial intelligence. Trainees can choose either the AMBP-Specialist or AMBP-Leader option. The IDC hosts exams for these certifications, as well as preparation courses. Trainees can join classes and gain access to the IDC learning management system to help them prepare for the certification exam of their choosing. Other options include examination only, self-study, online prep courses, live academies, and custom options. Their certification process for AMBP is similar but has a few key differences which include additional requirements, practice, and job task analysis. Furthermore, the IDC seeks to consistently update their training every 2 years to account for changes or updates in DEI legislation and research. “There’s a pure and simple business case for diversity: Companies that are more diverse are more successful.” - Mindy Grossman University of Pennsylvania Penn State offers a virtual training program called, “Culture-Driven Team Building: Optimizing Diversity in Teams.” This program is based on “social science perspectives” and teaches trainees how to use diversity “to maximize team performance, innovation and creativity,” use the “collective wisdom of diverse teams,” “handle conflict,” “establish ground rules,” and accurately define “diversity.” The program also discusses topics on biases, power, reward, and rhetoric. Although there are some reviews of the course stating technical difficulties, the course overall has received 4.3 stars based on 110 ratings (Coursera, n.d.). Stanford Stanford school of business offers an online course titled “Leverage Diversity and Inclusion for Organizational Excellence” that is available fully online and based on “research-based content” for real-world application. The course is self-paced and has an 8- to 10-hour time commitment and gives its participants a course completion certificate at the end of training. Key topics covered include bias, the benefits of diversity, hiring bases and solutions, inclusive workplaces, and performance evaluation. Throughout the training, application assignments and personalized feedback are provided to trainees for additional learning opportunities. “The thing that makes the world interesting is our differences, not our similarities.” - Tim Cook Diversity First Certification Program As part of the National Diversity Council, the Diversity First Certification Program offers a certification program and a graduate network for its National Diversity Council Certified Diversity Professionals. Trainees gain access to a DiversityFIRST Toolkit with diversity and inclusion (DI) resources, articles, infographics, and pre-recorded webinars. Upon certification, trainees are also introduced to the DiveristyFirst Graduate Network for networking and continued learning. Their training focuses on defining diversity, benefits of DI, the multigenerational workforce, culture, unconscious bias, DI measurement, accountability, and leadership. Their 5-day certification program is available online and in-person. The Diversity First Certification Program’s mission is to prepare “professionals to create and implement highly successful diversity and inclusion strategies for organizational excellence and a competitive edge.” While their program does not have a specific focus on equity, they do discuss “micro-inequities” in their section about unconscious bias. Insightful articles The following DEI articles have been published by credible publications and can help business leaders and executive coaches understand diversity and its many applications in the workplace. Regularly Monitoring, Using DE&I Data Is Key to Closing Organizational Gaps In this article, Kathy Gurchiek of the Society of Human Resource Management shares the importance of “regularly monitoring” diversity and inclusion metrics. She argues that diversity and integrity “efforts should not end once workers are hired” and other metrics such as “promotions, compensation, development opportunities and more” are vital for continued diversity inclusion. She also includes 10 recommendations for business leaders that wish to improve diversity and inclusion in their organizations (Gurchiek, 2021). Diversity Wins: How Inclusion Matters, 2020 report This article by McKinsey and Company outlines the many ways in which diversity improves executive teams and organizations. They analyzed data from 15 different countries and “more than 1,000 large companies.” Their article analyzes the current trends of corporate diversity and explains them with helpful and shareable infographics. They also provide specific examples of how executives can encourage diversity in their organizations. Recently, they have also published an article titled “Diversity Still Matters” in response to the COVID-19 pandemic. Diversity and Inclusion Methods that Really Work This article published by the Harvard Business Review by David Pedulla offers business leaders and executives five practical and “evidence-based” ways to increase diversity and inclusion as they lead their businesses. Including information from behavioral scientists and business leaders alike, the information provided in this article is high-impact and can be applied to any organizaiton. Diversity, Equity, Inclusion: A Roadmap for Best Practices - Chapman University, September 2020 In 2020, Chapman University released the “Roadmap for Best Practices” to outline its strategy and goals in implementing DEI. While this article is specific to Chapman University, it serves as a great reference for how DEI strategies can be developed and implemented. The authors of this article define DEI and create “actionable goals” based on the definition of DEI. Their goals include “equitable representation,” “inclusive policy,” “equitable access,” “equitable opportunity,” “commitment to recognizing bias,” and “accountability.” Recruitment and retention DEI practices such as diverse applicants, “cluster faculty hires,” and “special hiring opportunities” are addressed. DEI is also applied to professional development, curriculum, “data tracking and analysis,” and learning environments. These insights can be a great source of information for business leaders assessing how they might incorporate DEI practices in various areas of their business. Top 10 Diversity, Equity, and Inclusion Trends and Recommendations: 2020 and Beyond Michelle MiJung Kim, CEO of Awaken, released her top 10 “key trends and recommendations” for companies working towards DEI. In this article, she includes trends such as “compassion fatigue,” the importance of being “data-driven” and research-based, the current state of executives, global team strategies, leadership training, DEI roles, accountability, defining diversity, resource groups, and social justice movements (Kim, 2020). DEI Training for Organizations Wanting to Improve Their Culture and Climate Leah Kyaio in her article from BenefitsPRO shares interesting insight into applying DEI training to the workplace. In this article, she discusses two types of resistance to DEI training, of which she calls, “resistance as part of the learning process” and “resistance as a reaction based on fear.” She also reviews factors that can cause “inclusion training to fail” and the need for long-term diversity training for all staff (Kyaio, 2021). “The beauty of the world lies in the diversity of its people” - Unknown Recent Research The academic community continues to study DEI; searching for new insights, benefits, and conclusions that can be applied to the modern workplace. Consider the following research articles that we see as particularly impactful for today’s business leaders. Increasing Workplace Diversity: Evidence from a Recruiting Experiment at a Fortune 500 Company The research included in this article is sourced from a “field experiment in a major U.S. corporation” and shows the importance of how the “presentation of recruitment materials” affects workplace diversity. Currently, in the United States, 90% of Fortune CEOs are white males, indicating a potential barrier for the career developments of minorities. Instead of focusing on the definition of what diversity is, this research article focuses on how to increase diversity. Their results indicate the importance of language adjustments and “diversity messages” when hiring (Flory et al., 2021). Advancing Workplace Diversity Through the Culturally Responsive Teamwork Framework This research article in particular is focused on speech-language pathologists and offers several learning opportunities for today’s business leaders. In this article, the importance of diversifying the workforce in an effort to combat “racism, bias, and prejudice” is discussed. Cultural responsiveness is defined in this article as a “perpetual journey” and vital towards diversity and inclusions practices. They claim that there are four main components of culturally responsive teamwork: Intrapersonal practices (self-reflection) Interpersonal practices (listening skills) Interprofessional practices (multi-cultural resources) Interprofessional practices (team decisions) By learning about, and implementing, these four components into everyday behavior, business leaders and speech pathologists alike can support “diversity within their own practice” (Hopf et al., 2021). Harnessing demographic differences in organizations: What moderates the effects of workplace diversity? The researchers who created this study went beyond the importance of diversity and took a deep dive into what features of the workplace foster the benefits that diversity brings. The results of their research point to the importance of fostering diversity intentionally. They share that the “positive effects of diversity are likely to emerge only on knowledge-based and innovation tasks and when people have the ability and motivation to accomplish them.” The attitude and abilities of the team matter and foster the positive effects of diversity. Business leaders can intentionally foster the benefits of diversity by encouraging “cooperative interdependence,” equal status between groups, and a corporate culture that promotes “positive views towards diversity” (Guillaume et al., 2017). Walking the Talk on Diversity: CEO Beliefs, Moral Values, and the Implementation of Workplace Diversity Practices Researchers Eddy S. NG and Greg J. Sears sought to understand the effects of CEO “beliefs” and “moral values” on the “implementation of workplace diversity practices.” They studied how a CEO’s beliefs and behaviors affected how HR managers implemented DEI practices. They analyzed responses from 286 CEO and HR paired surveys which measured CEO beliefs, CEO behavior, perception of CEO’s commitment to diversity, implementation of diversity practices, and several control variables. A major finding of their study indicates that a “CEO’s words and action matter in setting the stage for the implementation of diversity initiatives, but the HR managers’ interpretation of these words and actions also plays an integral role in determining whether diversity management practices are in fact implemented.” In summarizing their article, they state that “for diversity practices to be implemented, CEOs first must make sense of the value of increasing diversity in the workplace and form positive beliefs about workforce diversity…” They recommend that CEOs also “convey their priorities and support for diversity management through visible behaviors” like words and actions to encourage DEI implementation from HR managers (NG & Sears, 2018). Hospitality Diversity Management and Job Satisfaction: The Mediating Role of Organizational Commitment Across Individual Differences Released in the 2020 International Journal of Hospitality Management, researchers Francisco J. Garcia-Rodriguez, Daniel Dorta-Afonso, and Manuel Gonzalez-de-la-Rosa studied the effects of diversity management on hospitality employees’ job satisfaction and organizational commitment. Garcia-Rodriguez and his colleagues define diversity management as “voluntary organizational actions that are designed to create greater inclusion of employees… through deliberate policies and programs.” Diversity management “programs, policies, and practices” include training, mission statements, and organizational procedures. In their study, they conducted a quantitative study of hospitality employees in the Canary Islands, which is “a world reference tourist destination.” They used a questionnaire to “measure hospitality employees diversity management perceptions in their hotels, as well as their organizational commitment and job satisfaction.” Results indicate that “employees’ perceptions of diversity management have a positive and significant direct effect on job satisfaction” and that employees’ perceptions of diversity management has an indirect effect on organizational commitment. In closing their research, they provide several recommendations for managers of hospitality organizations to consider such as incorporating diversity management into human resource policies (Gracie- Rodriguez et al., 2020). Diversity Management Efforts as an Ethical Responsibility: How Employees’ Perceptions of an Organizational Integration and Learning Approach to Diversity Affect Employee Behavior Released in 2020 in the Journal of Business Ethics, researchers Tanja Rabl, Maria del Carmen Triana, Seo-Young Byun, and Laura Bosch studied the effects of employee perspectives on “organizational integration and learning approach to diversity” on “organizational ethical value.” One unique feature of this study is that they performed two separate studies: one in the USA and the other in Germany. Their studies included a series of questionnaires regarding employee “perceptions of an organizational integration and learning approach to diversity,” perceptions of “organizational ethical virtue,” “organizational citizenship behavior toward the organizaiton,” and “interpersonal workplace deviance.” Interpersonal workplace deviance refers to behaviors that are not welcome in the workplace and questionnaires regarding this asked questions such as “how often has this person said something hurtful to someone at work?” Paired participants were also involved in the study and able to answer questions about other study participants. The research found that there is a connection between “perceived organizational inclusion efforts and perceived ethical virtue of the organization” and that “the integration and learning approach to diversity is beneficial for both the organization and its employees.” Organizations that used an “integration and learning approach to diversity” efforts were correlated with employees who believed their organizations had “ethical virtue.” Furthermore, their research indicates that the “perceived ethical virtue of the organization is positively related to organizational citizenship behavior” and a reduction in “workplace deviance.” Because of this, they concluded that if an “organization is perceived as ethical, employees will reciprocate and perform organization citizenship behavior.” They indicate that organizations can serve as a role model for employees in what behaviors are acceptable, expected, and supported (Rabl et al., 2020). “Diversity is the one true thing we all have in common… Celebrate it every day.” - Winston Churchill Closing statement As DEI research continues and new studies are published, this resource guide will be updated, changed, and further developed to best address the current understandings, learnings, insights, wisdom, statistics, and findings within the topics of DEI. As executive coaches, it is vital that we stay informed of current data and the latest research regarding DEI so that those we coach receive the latest information and see the greatest return on investment as a result. References Booth, A. (2007). Using evidence in practice in search of the information literacy training ‘half-life.’ Health Information and Libraries Journal, 24, 145–149. https://doi.org/10.1111/j.1471-1842.2007.00707.x Chapman University. (2020, September). Diversity & Inclusion. Retrieved December 8, 2021, from https://www.chapman.edu/diversity/index.aspx Coleman, S. (2019, March 26). Cornell's D&I Certificate Courses. Retrieved from https://medium.com/@sydneyccoleman/cornells-d-i-certificate-courses-607e7ab6188f Compliance Training Group. (n.d.). Diversity In The Workplace & Online Diversity & Inclusion Training. Retrieved December 8, 2021, from https://compliancetraininggroup.com/courses/workplace-diversity/ Coursera. (n.d.). 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Medium. https://medium.com/awaken-blog/top-10-diversity-equity-and-inclusion-trends-and-recommendations-2020-and-beyond-65c170725e4f Kyaio, L. (2021). DEI training for organizations wanting to improve their culture and climate. BenefitsPRO, Retrieved from https://www.benefitspro.com/2021/11/17/dei-training-for-organizations-wanting-to-improve-their-culture-and-climate/ Leadership Development Results That Matter | CCL | Learn More. (n.d.). Center for Creative Leadership. Retrieved December 8, 2021, from https://www.ccl.org/ Mesh. (n.d.). DEI Training. Retrieved from https://meshdiversity.com/dei-training Ng, E. S., & Sears, G. J. (2018). Walking the Talk on Diversity: CEO Beliefs, Moral Values, and the Implementation of Workplace Diversity Practices. Journal of Business Ethics, 164(3), 437–450. https://doi.org/10.1007/s10551-018-4051-7 Ozgen, C. (2021). The Economics of Diversity: Innovation, Productivity, and the Labour Market. 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Retrieved from https://theproductcompany.com/diversity-and-inclusion-training/ Smith, S. (2017). Adult Learners: Effective Training Methods. Professional Safety, 62(12), 22–25. https://onepetro.org/PS/article-abstract/62/12/22/33734/Adult-Learners-Effective-Training-Methods Society of Human Resource Management. (n.d.). (New) Inclusive Workplace Culture: Leading and Sustaining a Culture Transformation. SHRM. Retrieved December 8, 2021, from https://www.shrm.org/learningandcareer/learning/team-training/pages/inclusion,-diversity-and-equity.aspxSHRM Fall Education Catalog and Program Outline Stanford. (n.d.). Leverage Diversity and Inclusion for Organizational Excellence. Retrieved from https://stanfordexeced.stanford.edu/on-demand-online-courses/ Treece, D. D. (2021, September 09). The 8 Best Diversity Training Programs of 2021. Retrieved from https://www.thebalancesmb.com/best-diversity-training-programs-4843059 WGU. (2019). Barriers and Benefits of Diversity in the Workplace. Retrieved from https://www.wgu.edu/blog/barriers-benefits-diversity-workplace1906.html#close Copyright © 2021 by Arete Coach LLC. All rights reserved.

In each episode of the Arete Coach Podcast, we ask our guests a question inspired by Simon Sinek’s book, Start With Why, “Do you have a ‘why’ that gives you purpose, cause, or a belief that drives you and gives you energy?” In this insight article, we dive into what having a “why” means and how you can find your “why” to better your business, inspire others, and bring new passion to your coaching, business, or career. “It’s those who start with why, that have the ability to inspire those around them or find others who inspire them.” - Simon Sinek What does it mean to have a “why”? In Simon Sinek’s TedTalk, “How Great Leaders Inspire Action,” Simon explains that there are three parts to any leader or company: why, how, what. Simon calls this “the golden circle.” He states that “Every single person, every single organization on the planet, knows what they do... Some know how they do it... But very, very few people or organizations know why they do what they do. And by ‘why’ I don't mean ‘to make a profit.’” So what exactly is a “why” if it isn’t “to make a profit”? According to Sinek, the “why” is having a “purpose...cause...belief.” It’s knowing “why” your organization exists. Your “why” is the reason “you get out of bed in the morning” and why others should care about what you are doing. Your why is your passion—the underlying reason for your actions (Sinek, 2009). “All organizations start with why, but only the great one keep their why clear year after year.” - Simon Sinek The importance of finding your “why” Simon Sinek claims that all successful leaders function from the inside-out of the golden circle. Their “why” is their motivating and centrifugal force, it pushes businesses and leaders to the “how” and the “what.” Your “why” brings others into your mission and inspires them to take action with you as employees, clients, business partners, and even customers. Your “why” is essential to success, before money and market conditions. It pushes you to success and pulls others towards your product, company, goal, or leadership (Sinek, 2009). Without a “why,” you march into “what” your goal is and “how” you will achieve it, without any resilience to change, challenges, or setbacks. Sinek shares a story of the Wright Brothers and Samuel Pierpont Langley and their race to fly. Langley was well funded, well educated, and well connected—all of which make the perfect condition for the discovery of flight. At the same time, the Wright Brothers, had relatively no money, few connections, and no college degrees yet were also attempting to fly. What the Wright Brothers had ahead of Langley, was their “why.” They invented the machine that could allow people to fly because they believed “it'll change the course of the world.” Langley, on the other hand, had no “why” and was simply seeking wealth. Soon, the Wright Brothers were the first to fly and as a result, Langley quit that very same day. The Wright Brothers went down in history, and Langley was left in the dust, all because he didn’t have a “why” (Sinek, 2009). Research supports this need for a “why” or a passion when starting or running a business. In a research study of “small and medium-sized towns” in Italy, researchers found that entrepreneurial passion was “key” to turning an idea into a business. They stated that entrepreneurial and domain passion are “key resources in transforming the initial idea into a real entrepreneurial venture in resource-scarce settings…” They also found that passion shared by business leaders was sometimes “shared” by others which fostered “the involvement of local actors.” This involvement by others supported the business’ ability “to overcome relevant hurdles in the entrepreneurial process.” They claim that their research “emphasizes the role of passion as a key resource for networking and marketing” (Pagano et al., 2020). “Start with why. And work really hard to make sure you’re consistent.” - Simon Sinek What your “why” is matters Having a “why” influences success, encourages support from others, and gives you a north star for navigating the journey of business leadership. But it’s not just what your “why” is that matters, it’s what it means. Having the wrong “why” If you have the wrong “why,” your passion and motivation are misaligned with your business. For example, if your passion and motivation (in other words, your “why”) is helping others live healthier lifestyles but your business sells desserts or advertising technology, your business is not aligned with your “why.” Using this example, employees and executives might know “what” they make and “how” they make it, but the “why” of the business will remain unknown. Kevin Cashman, Korn Ferry’s Global Leader of CEO and Executive Development, states that “Without embracing the purpose of an organization—the motivating force of why it is so important that we exist—employees will become disenchanted” (Zabkowicz et al., 2020). Having the wrong “why” can cause employees to feel “disenchanted” with their careers, result in poor decision making due to lack of purpose, and affect how values and priorities are explained to customers. The wrong “why” brings the wrong guidance and goals. Having the right “why” If you have the right “why,” you have a reason to get out of bed and push your business to success in a way that excites you personally. For example, if the “why” you have chosen for yourself and your business is to make cooking delicious food more accessible to the average person, your business should support cooking and communicate a passion for teaching others how to cook as well. The right “why” helps you accomplish your goals. It also invites others to join your mission. If you have the right “why,” you will attract the right customers, employees, and business partners. The right “why” can serve as a driving force for your business. “Happiness comes from what we do. Fulfillment comes from why we do it.” - Simon Sinek Questions to find your “why” Knowing the “why” behind your business is an essential component for success. But how do you find this “why”? In Simon Sinek’s Book, Find Your Why, finding your “why” is like finding your “origin story.” Simon Sinek explains that your “why” comes from your “past” and can be retrieved by examining past “significant moments” to discover when and where you are at “your natural best.” Finding this “why” requires self-reflection, intentional thought, and difficult questions. For this reason, we pose the following questions for you to ponder, examine, and reflect on. What inspires me and gives me energy? Describe a past experience where you were at your best? What change do I want to make in the lives of those around me? What drains my energy? What makes me excited? What do I find purpose and value in? The main takeaway Your “why” is the driving force behind your business. Without it, employees and executives can know “what” they are doing and “how” they are doing it, but fail to understand the purpose, value, and meaning of their work. Having the right “why” can inspire employees, executives, and customers alike to engage, invest, and contribute. In order to find your “why,” you must understand what gives you energy and passion, and reflect on the significant moments of your past. Finding your best moments, identifying your passion, and defining your purpose, are essential to finding your “why.” Once your “why” is defined, you can then begin to evaluate how this affects your “what” and your “how.” Using this strategy can better your business, inspire others, and bring new passion to your coaching, business, or career. “To inspire starts with the clarity of why.” - Simon Sinek Resources Pagano, A., Petrucci, F. and Bocconcelli, R. (2021), "Passion-driven entrepreneurship in small and medium-sized towns: empirical evidence from Italy", Journal of Business & Industrial Marketing, Vol. 36 No. 13, pp. 210-219. https://doi.org/10.1108/JBIM-05-2019-0259. Sinek, S. (2009). How great leaders inspire action. TED. Retrieved November 30, 2021, from https://www.ted.com/talks/simon_sinek_how_great_leaders_inspire_action?language=en. Sinek, S. (2009). Start with why. Simon Sinek. Retrieved November 30, 2021, from https://simonsinek.com/product/start-with-why/. Sinek, S. (2017). Find your why. Portfolio/Penguin, an imprint of Penguin Random House, LLC. Zabkowicz, J., Remick, T., Cashman, K., & Lowman, D. (2020). The top hiring trends for the New Year. Korn Ferry. Retrieved November 30, 2021, from https://www.kornferry.com/insights/this-week-in-leadership/the-top-hiring-trends-for-the-new-year?utm_campaign=01-07-21-twil&utm_source=marketo&utm_medium=email. Copyright © 2021 by Arete Coach LLC. All rights reserved.

Many individuals, employees, executives, CEOs, and business leaders have grown increasingly concerned about the current rate of inflation at 6.8% (USBLS, 2021). As executive coaches, what lessons and insights on managing inflation can we point our clients to? What can we learn from past business owner and CEO responses to inflation and how can we share this knowledge with our clients? This insight article takes a deep dive into what leaders of the past have done, and what leaders of today can do to combat inflation. Not since 1982 has the US economy experienced inflation at the rates we are experiencing now. Bankers define inflation as a rise in the general price level. Put simply, this means, inflation is when the underlying price of a good or commodity rises faster than buyers’ income, such that inflated prices reduce buyers’ purchasing power. For example, if you make $15 per hour at your job, and the price of your food, rent, and fuel increases faster than your wages, then you have reduced purchasing power, and that’s called inflation. Inflation impacts businesses as well. When a company’s input prices (for costs of goods sold) rise, and the same business cannot raise prices commensurately on their customers, then inflation reduces company profitability and ongoing operations. In such times, companies do what they can to increase prices, and frequently implement cost-cutting measures inside the company to maintain profitability. When inflation is at 2% YoY or lower, then inflation is almost not noticeable and easier to absorb. However when inflation rises more quickly, then problems, shortages, imbalances, and market volatility can persist. Hyper-inflation exists when the inflation rate is 50% or greater per month, and sadly this has occurred from time to time and wreaks economies. Happily, we are not there yet in the US, and there is still time for the Federal Reserve Bank and others to take action and tamp down on inflation before it gets out of hand. “Let us learn from the past to profit by the present, and from the present, to live better in the future.” - William Wordsworth Key insights from the 12/13/21 Arete Coach Podcast on inflation (episode 1052) Inflation is higher than any time since 1982. Inflation of goods and services is outpacing wage growth; meaning buyers (consumers and businesses have less purchasing power). Central bankers typically seek to hold down inflation with five levers, all of which impact business operating conditions. The five levers include: Monetary policy – increasing interest rates to cool off lending and slow the economy down Control of money supply – pulling back cash in the system to reduce cash available to lend and spend Supply side policies – implementing policies to increase competitiveness and efficiency of the economy, or to impact certain markets in a way bankers feel will help the economy Fiscal Policy – recommending tax increases (to slow the economy) or tax reductions (to speed the economy up) Price and Wage Controls – where the bank and governments seek to freeze prices, wages, or some combination of both. This has not been used since the 1970s however we have seen a willingness of the Fed Reserve Bank to do whatever it takes, and they have been quite creative in their application of their mandate. It embraced its role as “lender of last resort,” it provided liquidity to borrowers and investors in key markets, and it expanded its interest rate (market operations) On the podcast, we also review insights from a 9/28/21 article published in the Harvard Business Review (HBR) titled, “6 Strategies to Help Your Company Weather Inflation” which offers key suggestions for business owners. The article authored by Jason Heinrich, Simon Henderson, Tom Holland, and Megan Portanova, examined 5,700 companies globally and what worked and did not work to navigate the waters of business during periods of high inflation. They found that the “businesses that cut costs to improve productivity the most during previous inflationary periods achieved higher total shareholder returns (TSR) than their industry peers that took less action.” Furthermore, “companies will need to make moves that not only cut costs but also build more scalable growth platforms, positioning them to strategically reinvest in programs that deliver greater resilience and stronger purchasing and pricing capabilities. They need cost programs that allow them to grow top-line revenue and reduce their dependence on volatile labor markets while improving employee retention.” The authors suggest six strategies to prepare for inflation now: Get [greater] spending visibility Differentiate between strategic and nonstrategic spending Unpack the drivers of spending; [get inside the numbers; they even suggest strengthening ties with your suppliers to get preferred supplier status for pricing and delivery] Reduce consumption Eliminate work [reduce SKUs, reduce what is sold to increase profitability of most important items, remember the 80:20 rule; fire some customers] Automate Our podcast concluded with 23 potential strategies for business owners to raise prices while seeking to keep their customers. Additional lessons from the past Although today’s inflation has relatively unique circumstances due to the COVID-19 pandemic, inflation itself is not a unique concept. According to Chair Cecilia Rouse, Jeffery Zhang, and Ernie Tedeschi of the White House, there have been 6 periods of inflation above 5% since World War II (2021). The most recent period of inflation they assess is the 2008 increase in gas prices (Rouse et al., 2021). Below we examine 4 major business responses to the 2008 financial crisis, as it is the most recent example of how businesses have combated inflation previously. Consider the strategies they used to ensure the wellbeing of their business despite the economic difficulties of 2008. Adapting to market adjustments During seasons of inflation, customers have less purchasing power. Meaning they are not able to purchase their usual amount of goods. However, people want to maintain their standard of living and are resistant to change. Because of this, they look to cut costs and save money on entertainment (Riserbato, 2021 & Wolverton, 2009). In response to the market adjustments brought by the 2008 recession, Netflix offered consumers new products at a better price than competitors. Netflix was offering customers a subscription-based service that allowed them to rent as many DVDs via mail one at a time per month or unlimited streaming online starting at $9 per month. Meanwhile, customers during that time expected to “pay $10 to $20 to buy a single DVD, or up to $5 to rent a DVD from Blockbuster” (Wolverton, 2009). Inflation and recession changes consumer priorities and purchasing power. By adapting to the changing market and providing customers with a more cost-effective way to purchase entertainment, Netflix was able to survive and innovate during the 2008 recession. From this case study, it is apparent that adapting to changing market demands is key to financial success amidst seasons of inflation. “During inflation, goodwill is the gift that keeps on giving.” - Warren Buffett Look for addressable opportunities in other geographies While customers in America sought to cut down on unnecessary spending during the 2008 recession, companies like Lego transitioned to the global market. While American consumers were managing the effects of the 2008 recession, Lego altered its focus to consumers in Europe and Asia (Riserbato, 2021). In doing this, their sales were able to reach “an all-time high” despite the recession (Thompson, 2009). Lego adapted to the financial challenges of America by investing in globalization. They saw an untapped market and innovated towards globalization to reap the necessary profits. “Innovation is the ability to see change as an opportunity- not a threat.” - Steve Jobs Innovate New products have helped multiple businesses survive recessions and inflations. Apple during the 2008 recession, released their new iPhone 3G. During this time Steve Jobs was reported saying, “We set a new record for Mac sales, we think we have a real winner with our new iPhone, and we're busy finishing several more wonderful new products to launch in the coming months…” (Johnson, 2009). The same is true for Amazon. They are reported as launching new products and services “in the months leading up to the start of the recession” which “contributed to the health of the company in the longer term” (Smous, 2021). Although inflation is on the rise, innovation does not stop. Consumers are still interested in the latest technology and tools that are available. The primary difference is the decrease in consumer purchasing power, which should be accounted for when determining production cost, consumer price, and profit margins. Improving customer experience During the 2008 recession, Starbucks changed its marketing strategy. As customers transitioned to cheaper coffee options such as McDonalds, Starbucks created the “My Starbucks Idea” campaign, “an online portal where customers could create a profile and contribute ideas about what they wanted from the Starbucks experience” (Smous, 2021). This campaign along with other customer-centered approaches helped them establish a greater sense of community and brand loyalty amongst customers. Although they struggled like many other companies, closing stores, and laying off employees during the 2008 recession, their customer-centered approach helped them withstand economic turbulence (Smous, 2021). Similarly, CitiGroup also invested more resources into customer experience. As the only bank that experienced any growth between the 2008 recession and 2014, it is important to note that they invested in their customer experience. CitiGroup increased community services, worked towards providing better experiences for customers, and reevaluated their marketing strategy (Riserbato, 2021). Both CitiGroup and Starbucks overcame the 2008 financial challenges by investing in their customers and developing a customer and community-centered approach to business. What others say about fighting inflation Not only are lessons from the past a key source of insight, but also are the knowledge of today’s researchers and leaders. Consider the following resources, insights, and thought pieces when discussing how to best adjust to inflation. Responding to Inflation and Volatility In July of 2021, McKinsey and Company released an article outlining how CEOs and business leaders can respond to the current rates of inflation. They suggest that business leaders invest in a “procurement nerve center” that “brings together specialists across the value chain- from supply chain, planning, finance, operations, and engineering- to triage supply-availability problems for raw materials, components, and related inputs.” They state that doing this can increase a “company’s response to uncertainty” and help them “capture cost savings, find and approve alternative commodities and their sources, and develop deeper partnerships with key supplies to generate additional sources of value” (Basar et al., 2021). In summary, McKinsey and Company encourage business leaders and CEOs to invest in strategic planning and problem solving to overcome current rates of inflation. They also state that cross-functional communication is vital to production and profitability in seasons of inflation. Other inflation tactics include investing in, or creating, “inflation nerve centers” that study “supply-chain risks, control spending, and accelerate collaboration.” When implementing these inflation nerve centers they point out several things to consider such as: Identifying which supplies are strategic partners Reduce waste Create win-win outcomes Revisit “value engineering” and design Plan for the long term (Basar et al., 2021) “Use it up, wear it out, make it do, or do without.” - New England Proverb Two Experienced Business Owners Discuss Strategies For Fighting Rising Prices This unique article from The Philadelphia Inquirer includes a discussion between two executives Bob Rosania and Fred Woll who are in government “negotiated, fixed contracts,” making it “almost impossible” to increase their prices amidst inflation. Because of this, Bob and Fred focus on cutting down production costs. In this article, they discuss the importance of reevaluating efficiency, workflow, and processes to look for new ways to improve efficiency, reduce waste, and increase profit margins. For example, Bob Rosania hired an individual as a “continuous improvement team leader” whose “sole function is to look for opportunities to eliminate waste in our process.” They also discuss how business leaders can begin to negotiate long-term contracts with suppliers and employees that protect them from further price increases or labor shortages (Marks, 2021). 6 Strategies to Help Your Company Weather Inflation (Harvard Business Review) In this article by the Harvard Business Review, an analysis of 5,700 companies is discussed. They “found that those that cut costs to improve productivity the most during previous inflationary periods achieved higher total shareholder returns” than those who did not. In this article, they outline 6 strategies that businesses can take to weather inflation based on the findings of their research (Heinrich et al., 2021). “Your margin is my opportunity.” - Jeff Bezos Margin Management Can Offset Sustained Inflationary Pressures Deloitte recommends that businesses take a “portfolio approach” to create strategies that best combat increased rates of inflation. They state that businesses should “quantify, prioritize, and plan to capture potential opportunities” in order to best manage their margins. In their article, they provide an example and infographic of a business that used this strategy within their MarginPLUS analysis (Deloitte, n.d.). “The single most important decision in evaluating a business is pricing power.” - Warren Buffett Effective Pricing Strategies During Inflation for Consumer Companies With insight from various companies, Deloitte outlines 4 steps that businesses can take to create effective pricing strategies during seasons of inflation. These steps include finding “easy wins” by correcting “pricing decisions made in the past,” creating a “targeted pricing strategy,” embracing effective communication, and rethinking “commercial positioning” (Deloitte, n.d.). Inflation and Economic Uncertainty: What CEOs Need to do Now From the Accenture blog, we find 5 key strategies that businesses can implement in the face of inflation. These strategies are based on embracing reinvention. Accenture’s Managing Director, Praveen Kishorepuria, states that companies can “use price increases strategically,” “aim for cost visibility and transparency,” “reset” their baseline, make cost structures “more variable,” and “build operating resilience” (Kishorepuria, 2021). Getting Real About Mitigating Price Inflation Felix Kaiser, Marc Sommerer, Stefan Thimm, and Jan Vandaele of McKinsey and Company discuss the impact that inflation has had on category managers and businesses due to the COVID-19 pandemic. In this article, they outline 5 strategies that category managers can implement to help manage inflation. They state that category managers should gain a “full understanding of supply–market dynamics and outlook,” “ensure suppliers can clearly articulate the impact of price increases in the market on suppliers’ prices,” “view unavoidable price increases as temporary surcharges, not the new future state,” “prioritize cross-functional initiatives,” and “work with sales to pass on price increases” (Kaiser et al., 2021). “Your ability to communicate with others will account for fully 85% of your success in your business and in your life.” - Brian Tracy Margin Management Can Offset Sustained Inflationary Pressures Amidst the current state of inflation, Walmart has been investing in “fulfillment,” “automation,” and “technology.” Brett Biggs, CFO of Walmart has been reported as saying “The investments we are making - and that’s going to be, you know, in fulfillment, it’s going to be in automation, it’s going to be in technology- I feel really good about the returns on those. And we wouldn’t be investing if we didn’t think our returns could go up.” Furthermore, Walmart is also diversifying services and inviting subject matter “experts” (Crawford, 2021). Winning The Race with Inflation: The Pricing Opportunity for Industrial Companies This article from Mckinsey and Company offers specific insights for business leaders of industrial companies. In this article, an example of the required price increases based on prior profit margins and rates of inflation are discussed. This article also discusses how inflation can exacerbate “margin leakage” that results from poor interdepartmental communication. Three key steps are recommended for businesses looking to make “consistent price improvements.” These steps include setting the right price, optimizing “discounts and rebates,” and “managing leakage.” Each of these steps have detailed subcategories to further help business leaders apply these strategies to their workplaces. Their suggestions are summarized into two central claims “pricing is still the most powerful profitability lever, and companies that continue to rely on outdated pricing approaches- disconnected from input costs or customers’ willingness to pay- will fall further behind as their margins shrink” (Krishnamurthy et al, 2021). “Difficulties strengthen the mind, as labor does the body.” - Seneca The main takeaway Inflation is a part of the current economic climate and leaders that adapt run businesses that thrive. While the threat of reduced profit margins, sales, or production supplies can be intimidating, it is vital for executives to remember that they have the ability to adapt their production lines, management strategies, marketing strategies, and investment in innovation. Executive coaches can use the examples from the past discussed in this article as inspiration and insight for their clients. These articles and research studies can also be useful information for executives and business leaders to consider when managing their businesses as well. Remember, from the HBR article, “businesses that cut costs to improve productivity the most during previous inflationary periods achieved higher total shareholder returns (TSR) than their industry peers that took less action.” Be proactive and see what you can do to navigate inflation. The current state of inflation should signal business leaders to innovate new ways to reduce waste, increase efficiency, attract customers, and better communication between marketing, procurement, management, sales, and other departments. Executive coaches can use this information as a springboard, inspiring questions and insights as necessary. Consider the following questions that executive coaches can ask their clients when discussing the challenges associated with inflation: Does your business have effective communication between branches? If procurement can’t obtain a resource, would marketing know? What areas of your production have the most waste? Have these areas been examined recently? What talent and resources have not been put to full use in your organization? Where could you innovate? What message are you sending to customers through your price and marketing? Do these messages align? Does your business plan ahead or react? What about the marketplace has changed? Has your business changed in response? “To improve is to change; to be perfect is to change often.” - Winston Churchill Resources Basar, J., Belotserkovskiy, R., Burns, T., Mussacaleca, M., Thoma, A., & Vandaele, J. (2021, July 21). Responding to inflation and volatility: Time for procurement to lead. McKinsey & Company. https://www.mckinsey.com/business-functions/operations/our-insights/responding-to-inflation-and-volatility-time-for-procurement-to-lead Crawford, E. (2021, December 2). Walmart leverages operations to offset margin pressure from keeping prices low as inflation rises. Foodnavigator-Usa. https://www.foodnavigator-usa.com/Article/2021/12/02/Walmart-leverages-operations-to-offset-margin-pressure-from-keeping-prices-low-as-inflation-rises Deloitte. (n.d.-a). Effective pricing strategies during inflation for consumer companies. https://www2.deloitte.com/us/en/pages/consulting/articles/consumer-pricing-strategies-during-inflation.html Deloitte. (n.d.-b). Margin management can offset sustained inflationary pressures. Deloitte United States. https://www2.deloitte.com/us/en/pages/consulting/articles/effective-inflation-margin-management.html Heinrich, J., Henderson, S., Holland, T., & Portanova, M. (2021, September 28). 6 Strategies to Help Your Company Weather Inflation. Harvard Business Review. https://hbr.org/2021/09/6-strategies-to-help-your-company-weather-inflation?registration=success Johnson, B. (2009, July 21). Apple bucks recession with some of best financial results in its history, thanks to new iPhone 3GS. The Guardian. https://www.theguardian.com/technology/2009/jul/21/apple-financial-results Kaiser, F., Sommerer, M., Thimm, S., & Vandaele, J. (2021, July 14). Getting real about mitigating price inflation. McKinsey & Company. https://www.mckinsey.com/industries/chemicals/our-insights/getting-real-about-mitigating-price-inflation Kishorepuria, P. (2021, September 8). Inflation and economic uncertainty: What CEOs need to do now. Accenture. https://www.accenture.com/us-en/blogs/business-functions-blog/inflation-economic-uncertainty Krishnamurthy, H., Queirolo, A., Redaelli, S., & White, B. (2021, October 22). Winning the race with inflation: The pricing opportunity for industrial companies. McKinsey & Company. https://www.mckinsey.com/industries/advanced-electronics/our-insights/winning-the-race-with-inflation-the-pricing-opportunity-for-industrial-companies Marks, G. (2021, July 19). Two experienced business owners discuss strategies for fighting rising prices. Https://Www.Inquirer.Com. https://www.inquirer.com/business/inflation-small-business-prices-contracts-20210719.html Riserbato, R. (2021, May 28). How These 7 Companies Thrived During the Recession. Hubspot. https://blog.hubspot.com/marketing/companies-that-thrived-during-the-recession Rouse, C., Zhang, J., & Tedeschi, E. (2021, July 6). Historical Parallels to Today’s Inflationary Episode. The White House. https://www.whitehouse.gov/cea/written-materials/2021/07/06/historical-parallels-to-todays-inflationary-episode/ Smous, L. (2021, December 1). How Winning Brands Keep Winning in a Recession. AdRoll. https://www.adroll.com/blog/how-winning-brands-keep-winning-in-a-recession Thompson, J. (2009, August 18). Lego sales buck recession to hit all-time high. The Independent. https://www.independent.co.uk/news/business/news/lego-sales-buck-recession-to-hit-alltime-high-1773474.html USBLS. (2021, December 15). Consumer prices up 6.8 percent for year ended November 2021 : The Economics Daily: U.S. Bureau of Labor Statistics. United States Bureau of Labor Statistics. https://www.bls.gov/opub/ted/2021/consumer-prices-up-6-8-percent-for-year-ended-november-2021.htm Wolverton, T. (2009, July 16). 2009: Netflix defies recession. The Mercury News. https://www.mercurynews.com/2009/07/16/2009-netflix-defies-recession/ Copyright © 2021 by Arete Coach LLC. All rights reserved.

With the New Year comes a new set of resolutions. And this year, many resolutions have aligned with the theme of a well balanced life. However, coaches have found that many executives are facing the challenge of how exactly to balance their work and home lives. Within this insight article, we examine the importance of finding a balance between work and home life, common misconceptions about this delicate balance, and tangible ways executive coaches can encourage clients to find their balance. “It’s all about quality of life and finding a happy balance between work and friends and family” - Philip Green The importance of work-life balance The balance between work and life has many effects on an executive, their family, and their business. Below we dissect some of the drawbacks to having a poor work-life balance and the potential benefits of having a balanced life. Family relationships Sometimes, the busyness of work and stress can blindside an executive’s genuine goal of being an impactful parent or sibling. An example of this can be seen in Episode 1039 of the Arete Coach podcast with Ron Merryman. Ron shares an experience he had with a client whose teenage daughter “wasn’t talking to him anymore” because of his excessive work hours. In response, Ron worked with him and gave him some suggestions to start rebuilding that relationship. Soon, Ron’s client and his daughter were communicating and spending time together again. Dr. Thomas explains that when there is an imbalanced between work life and home life, “problematic” behaviors can arise which ultimately affect “work colleagues” and/or “family members.” She shares that if “organizational loyalty is stressed at the expense of family… withdrawal from family roles may be expected.” Even work stress can affect an executive’s relationships outside the office. If an executive’s “work obligations” are not reduced when they are at home, their “time spent at home may be overshadowed by constant work-related thoughts and pressure” (Dr. Thomas, 2021). When executives unintentionally prioritize work over their family roles and friendship roles, these relationships suffer. Dr. Thatcher of Highland Springs Clinic defines family and other social relationships as “essential to our mental and physical well-being” (Dr. Thatcher, 2020). Having a balanced work/home life is essential for proper maintenance of social and family relationships; ultimately having several resounding positive effects on an executive’s physical and mental well-being. “Don’t get so busy making a living that you forget to make a life.” - Dolly Parton Mental and physical health For the executive with an imbalanced work-life schedule, there is an increased amount of stress due to the unmet needs of either role. When executives are stressed about unmet needs in their home or career they can face “decreased health” and a negative impact on their “personal relationships” which directly affects their physical and mental health (Dr. Thomas, 2021). Chronic stress from an imbalanced work and home life has been associated with a weaker immune system, more minor illnesses, muscle aches, headaches, increased risk of strokes, and an increased risk of heart attacks (Dr. Thomas, 2021). An imbalance life can also contribute to anxiety and irritability which can “culminate into a prolonged depression, sadness, and drug or alcohol abuse” (Dr. Thomas, 2021). Dr. Nortje gives an example of an overworked academic named Ryoichi Fujiwara who had a drastic imbalance between their home life and work life. Because Ryoichi was overworking herself and also working every weekend she “lost 22 pounds, was never hungry, and couldn’t sleep.” Her extreme physical changes spurred her towards adopting regular working hours, avoiding over time, and regular exercise. Dr. Nortje shares that after a few months, Ryoichi was back to normal health after adjusting her work-life balance (Dr. Nortje, 2021). Work-life balance has direct effects on the stress levels, mental health, and physical health of an executive. Dr. Nortje states that those with “more time for their personal life are less likely to develop illness and stress-related conditions” (2021). Without the ability to unplug from work and plug into family and other social relationships, executives are subject to the stress of unmet expectations from both work and home; ultimately negatively affecting their mental and physical health. Business and productivity Although many executives believe that working more hours at the expense of their family relationships, social relationships, mental health, and physical health will pay off with major business profits, research says otherwise. One of the many side effects of an imbalanced work and home life is “unproductivity” (Dr. Thomas, 2021). In Europe, labor laws prohibit working more than 48 hours a week in most professions, “indicating that beyond this, labor is unhealthy and relatively unproductive” (Dr. Thomas, 2021). European laws also require that employers give employees “at least 11 consecutive hours of daily rest and at least 24 hours of uninterrupted weekly rest every 7 days” (European Union, n.d.). What can we learn from this? That everyone needs rest. Consider asking your coaching clients the following: If entire nations can run on allowing employees to have 11 consecutive hours of daily rest, what is preventing you from a reasonable rest from your workload? Having a balanced work and home life can lead to higher levels of productivity, reduced absenteeism, higher commitment, and increased motivation in the workplace (Dr. Thomas, 2021). Furthermore, when executives have more time to run personal errands like going to the doctor, they are “less likely to use work hours on non-work-related issues” (Dr. Nortje, 2021). This can help executives stay focused during their working hours and have their full attention on tasks that are important for their businesses to continue running. When executives have a balanced work and home life, they are more able to focus on, and commit to, their work during regular working hours. This makes them more productive, enhances their ability to manage their time, and helps them achieve their workplace goals while still investing in their important outside-of-work relationships. “Invest in your work-life balance. Time with friends and family is as important as times at work. Getting that out of balance is a path toward unhappiness” - Stephen Gillett Work-life balance misconceptions Since the farmer left the field and entered the office, there has been a continual debate over what a proper work-life balance is, how it is achieved, and what it means for the executive/worker. There are several common misconceptions that business leaders and executive coaches alike can unintentionally believe in. Only one role can succeed Many executives who believe they must work for 80+ hours weekly buy into the misconception that only one of their roles, either executive or family member, can be fully fulfilled and succeed. However, this is not the case. As aforementioned, there are many negatives to having a poor social, home, and family life outside the workplace. Without the necessary care for the body and the mind that outside-of-work relationships provide, executives can face challenging obstacles in their careers ranging from stress, reduced productivity, relationship challenges, and chronic illness. Success as an executive is not isolated from the effects of stressed family relationships and social isolation. When executives find balance in these two areas of life, they reap the benefits of healthy socialization and are able to intentionally achieve their career goals. Separating work and home life Long gone are the days where the briefcase could be closed and left by the door. The saying “leave work at the door” is still used today, but is increasingly difficult for executives to accomplish. Today, meetings can be held over the phone which is also used in the home to call family and friends that are out of town etc. And with the help of WiFi, executives can log into their work emails easily from home. Instead of having a boundary between work and home life with the saying “leave work at the door,” perhaps today’s executive needs a new saying such as: “leave the to-dos at the door.” This saying could help executives refrain from excessively checking emails, taking phone calls, making phone calls, solving problems, and bringing the to-dos and responsibilities of their role as an executive during their time as a parent or friend at home. Several psychologists and researchers have indicated that work and home life impact each other in several theoretical models including the following: compensation, resource drain, instrumental, congruence, conflict, and spillover-crossover. Some researchers support the “work-life integration” model, which encourages executives to involve people in their “work, personal life, and community domains” so they can “work together to help one another achieve their goals in each domain” (Dr. Nortje, 2021). Clearly, the work and home life of an executive are not separate from each other and executives can create their own unique balance that incorporates the needs of both domains. “Work-life balance is about creating a life that flows with you rather than a life you have to power through.” - Jaime Marie Wilson One size fits all Everyone’s work-life balance will be unique to their needs, role in their family, and the needs of their business and family. For example, an executive who is on paternity or maternity leave will have a work-life balance unique to the needs of their new family member. Later in life, this executive can return to the workplace as their child develops and their immediate needs decrease. Furthermore, if an executive chooses to homeschool a child, their work-life balance will be different from executives whose children attend public or private schools. It is important for executive coaches to work with their clients to identify their needs, their family’s needs, and their workplace’s needs. By doing this, the executive coach and the business leader can work together to create a work-life balance that works best for them. How to establish a work-life balance As executive coaches work with clients to create a proper work-life balance, several key strategies can be integrated to help turn work-life balance goals into reality. Focus on time management One key to having a successful and beneficial work-life balance is the ability to manage time. There are several strategies that are available. In episode 1041 of the Arete Coach Podcast with Tom Cuthbert, Tom discusses the importance of guarding your time and the S.M.I.T.T.E.N. technique: Single Most Important Thing To Execute Next. The University of Saint Augustine recommends several time management techniques including the 80/20 rule, the Pomodoro Technique, the Eisenhower Matrix, Parkinson’s Law, and time blocking. All of these strategies involve examining tasks that must be done and executing them in an organized manner (2019). By creating or choosing a time management strategy, examining what needs must be met, and where time is wasted, executives can be empowered to address the needs of their family/social life and their business as well. “Be steady and well-ordered in your life, so that you can be fierce and original in your work.” -Gustave Flaubert Examine and discuss priorities Sometimes, an executive’s goal to be a good parent, sibling, spouse, or friend gets sidelined by the needs of their business or the stress they are experiencing at work. This is often unintentional and not desired by executives or their family and friends. To help combat this, it is important for executive coaches to help executives identify what their goals genuinely are. Dr. Thomas states that when having these conversations and attempting to get a better work-life balance that it is “critical” for executives to understand “whether personal sacrifice compensates for the rewards of longer work commitments” and vice versa (2021). By asking difficult questions and encouraging moments of pondering, executive coaches can inspire executives to realign themselves with their genuine goals and thus create their own work-life balance. “The key is not to prioritize what’s on your schedule, but to schedule your priorities.” - Stephen Covey Schedule time with family and friends When executives learn to intentionally schedule times to be with family and friends, they are letting their co-workers know that they will be unavailable during these times and are also creating a habit for themselves that encourages investment in family and social life outside the workplace. By setting clear boundaries between your work and personal responsibilities, an executives’ team can better adjust to challenges by knowing who is available for consultation and executives can achieve their goals in both their career and family life. Randi Zuckerberg’s “Pick Three” technique Rani Zuckerberg published a book, Pick Three: You Can Have It All (Just Not Every Day), in 2018 and has since become a New York Times bestseller. In the book, 5 key aspects of life are outlined: work, family, friends, sleep, and fitness (Zuckerberg, 2018). Her popular tactic for achieving balance in these areas of her life is the “pick three” method. She recommends picking the top three most important events or to-dos for the day. In a Marie Claire article, she states that “the key is to pick three things to do really, really well each day” (Zuckerberg, 2018). The “pick three” method allows people to find their own personal “sense of balance” based on what “works for them, one day at a time.” By daily evaluating your top three daily priorities between family, work, friends, sleep, and fitness, individuals can readjust their priorities based on how previous days went and their unique expectations for the day ahead (Zuckerberg, 2018). The main takeaway As we enter the new year, it is important for executive coaches and their clients to examine their work-life balance as they are intricately intertwined and affect relationships, physical health, mental health, and success as a business leader. Although the saying, “leave your work at the door” is still prevalent, it has become outdated with the latest advancements in technology. Instead, executives should leave their to-do lists at the door and intentionally take up their role as a parent, spouse, sibling, or friend. Executive coaches can help their clients do this by creating a customized time management technique, discussing and identifying priorities, and intentionally scheduling time outside the workplace. Every executive’s work-life balance will look different per their situation. However, the research and medical professionals of today insist that having a proper work-life balance is vital for well-being and success. “Balance is not something you find, it’s something you create.” - Jana Kingsford References European Union. (n.d.). Working Hours in EU: What are the minimum standards? Your Europe. Retrieved November 5, 2021, from https://europa.eu/youreurope/business/human-resources/working-hours-holiday-leave/working-hours/index_en.htm. Nortje, A. (2021, September 29). What is Work-Life Balance? Positive Psychology. Retrieved from https://positivepsychology.com/what-is-work-life-balance/. Thatcher, T. (2021, August 6). The top ten benefits of spending time with family. Highland Springs. Retrieved November 5, 2021, from https://highlandspringsclinic.org/blog/the-top-ten-benefits-of-spending-time-with-family/. Thomas, L. (2021, October 8). Importance of a work-life balance. News. Retrieved November 5, 2021, from https://www.news-medical.net/health/Importance-of-a-Work-Life-Balance.aspx. University of St. Augustine. (2019). 9 popular time management techniques and Tools. University of St. Augustine for Health Sciences. Retrieved November 5, 2021, from https://www.usa.edu/blog/time-management-techniques/. Zuckerberg, R. (2018, May 17). How to Live Your Life, Guilt-Free. Marie Claire Magazine. https://www.marieclaire.com/career-advice/a20722543/randi-zuckerberg-pick-three/. Zuckerberg, R. (2018). Pick Three: You Can Have It All (Just Not Every Day). Dey Street Books. Copyright © 2021 by Arete Coach LLC. All rights reserved.

In Gallup's most recent, “State of the Global Workplace” report, three key themes are revealed. This insight article sheds light on each theme and the importance of each in achieving improved employee engagement and a sharper competitive advantage as a result. Statistics of interest Gallup has collected data using their Gallup World Poll since 2005. Their data includes information from over 160 different countries along with “extensive random samples of working populations in the United States and Germany.” Due to the COVID-19 pandemic in 2020, they transitioned to virtual computer-assisted-telephone interviews and collected data from 116 countries by early 2021. Below are key statistics found from this research that reflect the state of the global workplace from 2020 to early 2021. 45% of people say their own life has been affected “a lot” by the Coronavirus 50% of workers received less money than usual from their employer or business 49% of workers worked fewer hours at their job or business 53% of workers temporarily stopped working at their job or business 32% of workers lost their job or business- just over 1 billion adults 20% of employees are engaged at work, a 2% decrease 32% of employees are thriving, a 2% increase Approximately 7 out of 10 employees are “struggling or suffering, rather than thriving, in their overall lives” Negative emotions increased more for employees who are younger than 40 than those we are 40 and older Negative emotions increased more for female employees than male employees 41% of employees experienced worry during a lot of the day prior to questioning, an increase of 6% 43% of employees experienced stress during a lot of the previous day, an increase of 5% 24% of employees experienced anger during a lot of the day previous to surveying, an increase of 4% 25% of employees experienced sadness during a lot of the day previous to surveying 14% of employees say they were not treated with respect all day on the day previous to surveying, an increase of 2% 69% of employees say corruption is widespread within businesses located in their country, an increase of 1% Key insights There are three key themes in Gallup’s research study: engagement, COVID-19’s effects on the workplace, and mental health. COVID-19 has affected many employees financially, medically, and emotionally. Globally, engagement for employees has gone down and negative mental health indicators such as anger, stress, and worry have gone up. “Employee engagement is a catalyst for success and sustainability that cannot be ignored.” - Irene Becker 1. ) Engagement The importance of engagement According to Gallup, “employee engagement reflects the involvement and enthusiasm of employees in their work and workplace” (2021). Previous analysis by several researchers at Gallup has indicated that businesses with high levels of employee engagement “achieve higher productivity, higher customer loyalty/engagement, better safety, lower turnover, and higher profitability, among other positive business outcomes” (Gallup, 2021 & Harter et al., 2020). They also estimate that “low engagement costs the global economy US$8.1 trillion” (Gallup, 2021). Their research indicates employee engagement is a valid way to compete in the global marketplace. Global and national trends While the global trend for employee engagement is negative, some countries such as the US and Canada have experienced a slight increase in employee engagement. However, coming in at 34%, the percentage of engaged employees for these countries leading in engagement is still low. Western Europe is estimated to have the lowest rate of employee engagement (11%) while Eastern Europe has the average rate of employee engagement at 21%. Interested in learning more about employee engagement? Consider visiting our research article, “How Employees Avoid Work and Evade Engagement,” where we discuss several strategies that employees use to evade engagement and why they might be doing so. “Taking care of the mental health of your employees is going to make your business more competitive.” - Mark Henick 2. ) The mental health crisis Jim Clifton’s Summary Jim Clifton, Chairman and CEO of Gallup, states in his introduction to the 2021 Workforce Report: “negative emotions — worry, stress, anger, and sadness — among employees across the world reached record levels in 2020...These problems existed long before COVID-19. Gallup has discovered that negative emotions have been rising over the past decade. Even if we return to pre-COVID-19 levels of these emotions, the trends are still concerning. But it is possible — even likely — that employee mental health will get worse...Measuring employee mental health is critical. Besides destroying lives, suffering can destroy the human spirit that drives innovation, economic energy, and eventually, good jobs. This is likely tied to declining economic dynamism. Global GDP per capita is slowing — it has been for decades.” - Jim Clifton, 2021 Global and national trends Gallup’s research has indicated that almost 7 out of 10 employees are “struggling or suffering, rather than thriving, in their overall lives.” Although engagement in the US and Canada increased, over half of the workforce reported “high stress — far above the global average.” Meanwhile, countries with reduced engagement reported feeling less stress (Gallup, 2021). They propose that this could be due to “supportive social safety nets in many European countries, such as well developed social systems that helped to prevent some job loss and unemployment” for women in western Europe. Regardless, “worry, stress, anger, and sadness increased for employees globally in 2020” especially for women and those under 40 years of age (Gallup, 2021). Global daily stress levels experienced a record high, increasing by 5% since 2019. Anger and feelings of sadness also increased by 4% since 2019 (Gallup, 2021). “The most successful organizations are now turning their attention to employee wellbeing as a way to gain emotional, financial, and competitive advantage.” - Tom Rath, Gallup Gallup’s five elements of wellbeing Gallup states that there are five areas in which wellbeing can be supported. They state that “wellbeing is about more than physical health. When people are thriving in all five areas, they have better health outcomes than when thriving in just physical wellbeing. Compared with those who score high on physical wellbeing alone, those who score high on all five elements report 41% fewer unhealthy days. Corporations need employees who are consistently high in energy, focused, innovative, agile, and resilient. In other words, they need employees who are engaged at work and thriving in their overall life” (Gallup, 2021). The five areas that they believe employers should support for their employees are as follows: Career Wellbeing: you like what you do every day Social Wellbeing: you have meaningful friendships in your life Financial Wellbeing: you manage your money well Physical Wellbeing: you have energy to get things done Community Wellbeing: you like where you live (Gallup, 2021) Gallup offers several suggestions on how employers can develop these areas of wellbeing such as “developing their employees’ strengths to help foster long-term careers, creating family-friendly policies and encouraging friendships at work, providing financial services and education, encouraging physical activity and making it easier to choose healthy foods, and celebrating those who give back to the community through service” (Gallup, 2021). Their research suggests that business leaders should “create a culture in which leaders, managers, and employees weave wellbeing into their everyday conversations.” (Gallup, 2021). Interested in learning more about wellbeing and mental health? Check out relevant articles in the Arete Coach Insight library: Are you asking “how are you sleeping these days?” instead of “how are you?" Mandating Vacations: The Next Trend in Employee Wellness Stress Management for CEOs and Executives The Overlooked Key to Success: Embracing Exercise Mindfulness and the Mindful Coach 3. ) The effects of COVID-19 Gallup’s research study revealed many effects that COVID-19 has had on the global workforce. As the COVID-19 pandemic continues to evolve and we transition to new normals, consider the following insights from Gallups research. “Employees are a company’s greatest asset.” - Anne M. Mulcahy Increase in negative emotions As stated in the “mental health crisis” section, negative emotions such as fear, anger, worry, and stress increased globally from 2019 to 2020 (Gallup, 2021). These negative emotions “represent the frustrations and struggles of millions of workers across the planet” and can negatively “affect the involvement, enthusiasm, and productivity of workers in both good times and bad” (Gallup, 2021). Although negative emotions have been increasing in recent years, the COVID-19 pandemic may have exacerbated some of these trends via the stress and health challenges brought by the pandemic. Financial effects There are several financial effects that the COVID-19 virus has had on the global workforce. According to Gallup’s research 50% of employees received “less money than usual from their employer or business,” 53% of employees “temporarily stopped working,” 32% of employees lost their jobs or business, and 49% of employees “worked fewer hours.” They state that “just over 1 billion adults” lost their jobs during the pandemic. However, they also state that “pandemic affected work varied widely by region.” For example, only 6% of workers lost a job or business in Western Europe and 66% of adults in South Asia temporarily stopped working due to the pandemic (Gallup, 2021). Regardless, job losses have financial and emotional repercussions. Whilst managing the COVID-19 pandemic, many adults were also managing their changing financial incomes, potentially increasing stress. The main takeaway The Gallup 2021 Workforce Report indicates the importance of supporting employee wellbeing and also creating a culture of engaged employees. According to Gallup, employers can do this by supporting Gallup’s five measures of wellbeing, examining employee engagement, and letting employees know in action, and word, that “their employers, leaders, and managers truly care bout them as people.” Closing questions to ponder As we examine this data and take away the importance of wellbeing and engagement, as well as the effects that COVID-19 has had on the workplace, we close with a few questions for the executive coach to ponder and pose to executives seeking to better their businesses. From Gallup (2021), “Are your employees engaged and thriving?” Are your employees engaged? If not, why? If yes, how do you know? What are you doing today to show your employees you care for them? Are they aware of this? How has COVID-19 affected your workplace and the lives of your employees? How can you establish a culture of caring leaders and engaged employees? “Leaders become great, not because of their power, but because of their ability to empower others” - John Maxwell Resources Gallup, Inc. (2021). State of the Global Workplace Report - Gallup. Gallup. https://www.gallup.com/workplace/349484/state-of-the-global-workplace.aspx Harter, J. K., Schmidt, F. L., Agrawal, S., Blue, A., Plowman, S. K., Josh, P., & Asplund, J. (2020.) The Relationship Between Engagement at Work and Organizational Outcomes: 2020 Q12® Meta-Analysis: 10th Edition. Omaha, NE: Gallup. Retrieved from: https://www.gallup.com/workplace/321725/gallup-q12-meta-analysis-report.aspx Copyright © 2022 by Arete Coach LLC. All rights reserved.

In Episode #1055 of the Arete Coach Podcast, today’s talent landscape is discussed and insights are shared on the talent shortage, surge in labor bargaining power, and increasing price of talent. With a high demand for talent and low supply of skilled knowledge workers, what are businesses to do? The answer is simple: stop focusing on the immediate issue of hiring talent and instead address the systemic issue that got us here to begin with. The systemic issue What we are experiencing today is something much greater than a temporary talent shortage; it is the result of the Silver Tsunami—a term that describes the age at which Baby Boomers enter their senior years and withdraw from the workforce. The Silver Tsunami wave was expected to crest around 2028, however, COVID-19 has sped its arrival. Today, we are seeing Baby Boomer retirements increase and significantly impact the economy as a result. In 2014, Harry Dent, an economic forecaster, wrote a powerful book called The Demographic Cliff that described how in the mid-20’s the US experienced a seismic demographic cliff of older generations retiring and fewer individuals from younger generations entering the workforce. In 2021, Ron Hetrick, et.al., picks up on this theme and describes how COVID-19 has exacerbated the demographic effects of the workplace, highlighting a projected growing problem for the American workforce—the Sansdemic: a lack of people in the workforce (Coffey, 2021). In a recent publication from Emsi, this trend in today’s workforce has been called a “demographic drought” and affects business leaders’ hiring processes nationwide. What exactly is the Sansdemic and how was it caused? Whether you call it a Silver Tsunami, Demographic Cliff, or Sansdemic drought, it all adds up to fewer workers in the workplace. Where we go from here To combat the systemic problem of too few qualified workers available to hire, consider your hiring strategy. Think about automating positions, leveraging software, outsourcing to other firms, and hiring fewer people. In hiring fewer people, find candidates who can do the work of 2-3 people and pay them more than current average 90-percentile compensation. This approach will give you work worth 2-3x an average employee while keeping costs under control and staying within budget. If you’re interested in understanding how to find premier talent, review ePraxis’ 10-step proprietary process proven to secure game-changing talent. “If you think it’s expensive to hire a professional, wait until you hire an amateur.” - Red Adair, American Oil Well Firefighter Your go-forward strategy Below are 20 strategies business owners and CEOs can implement to weather the current talent landscape. Rethink labor requirements Focus on the Automation Imperative. Recognize that talent is scarce today, and labor prices are going up. Figure out what you can do today and in the near future to automate tasks of all types in your business, in order to reduce labor requirements now. Evaluate the basket of goods you sell. Figure out what you can make profitably that takes less labor. Look into outsourcing. Figure out what you can outsource to other companies to reduce your labor input costs. Determine geographical job requirements. Figure out what jobs can be done remotely and (i) globally outsource and (ii) rurally insource talent. Most importantly, be flexible. Being rigid will lose you employees who seek greater life balance and flexibility. Revise recruiting methods Use humans to recruit. Databases such as Indeed and Linkedin are great tools but they lack human touch. During the hiring process, you must nurture the prospective candidates you seek. Increase pay for performance options. You can pay any rate to an employee that makes you more money; getting a pay-for-performance compensation plan will be attractive to high performers. Greatly speed up your hiring processes. Great talent is scarce and may only be available for a few days before finding employment with another firm. For example, the average shelf life of a great financial controller is five days. If your hiring process takes 3 weeks, good talent will have already been hired by others. Actively manage your talent pool. Engage, engage, engage with employee candidates. Use as many talent boards as you can. While many employees have found their job on Indeed, there are many other places to look; so post in at least 7 or more locations per search. Let AI tools work for you. Several services are available that offer AI-based candidate hunting. For example, a tool called Loxo can find look-a-like candidates based on a LinkedIn address. While connection between a human and the candidate is still required, these tools can help you find more people quickly. Reduce friction in your candidate selection process. Sometimes, it’s just too hard for candidates to apply for a job. Find new ways to screen talent and streamline the process. Define the hiring process. Hiring talent right now is a grind. You are making sausage; it's hard work, but if you work the process, you end up with something deliciously good. You must have processes and run them to find results. Not only must you have processes, but you must be systemized, timely, and present in front of the candidates to ensure they see your company’s professionalism and value. “If you pick the right people and give them an opportunity to spread their wings—and put compensation as a carrier behind it—you almost don’t have to manage them.”- Jack Welch Focus on retention Prevent regrettable and untimely departures. Pay your people more, and figure out what they want in addition to pay that would make your business the best place to work. Consider additional deferred compensation. Integrate equity, stock options, and other time-delayed compensation measures to prolong employee performance, and create a competitive advantage against competitor employers seeking to hire your employees. Figure out how to lock up your best talent in roles, positions, and opportunities where they won’t want to leave, and make it more costly for others to steal them away. Advertise to the aging population. Create a campaign that targets the aging population that retired early, and encourage part-time, flex, and other work arrangements to gain their wisdom, insights, and labor participation for a lifestyle they can afford. Always be on the lookout Keep up with the latest research. Consider the advice in the McKinsey report on what employees want now. Hire employees who are already working. The employees you want most are those who are already working, so develop your own fan club of prospective future employees and nurture and develop them. Create a positive flow of candidate attraction to you and your company by growing relationships and making your own company one of the best places to work. Create a steal-away strategy. Talent must be sought after, identified, targeted, and nurtured. You might consider developing your own target prospects list and implement your own steal-away strategy. After all, as Jim Collins has said, “people are not your most important asset. The right people are.” Tune into the end of Episode #1055 for candidate steal away strategies that have proved successful. “Hire people who are better than you are, then leave them to get on with it…; Look for people who will aim for the remarkable, who will not settle for the routine.” - David Ogilvy Try, try & try again Hire a headhunter or recruiting service. If you aren’t finding the right candidates, consider hiring a headhunting or recruiting firm that’s fully invested in your success with a team of active recruiters dedicated to your search. Be patient. Don't chase talent that is too needy, costly, or bad behaving. There are some real prima donnas out there who are paid too much with no promise to perform. For more detail and commentary, tune into Episode #1055 of the Arete Coach Podcast. Copyright © 2022 by Arete Coach LLC. All rights reserved.

According to Dr. Boyers, President of Rosemont College, “Business success depends on empathetic leaders” (Boyers, 2013). If empathy is a key to leadership success, why do only 45% of employees view their CEOs as empathetic (Business Solver, 2020)? What is empathy, how can it help business leaders and executives, and how can it help executive coaches as well? Continue reading to find out. “Leaders with empathy do more than sympathize with people around them; they use their knowledge to improve their companies in subtle, but important ways.” - Daniel Goleman What is empathy? There are three separate types of empathy: (i) affective, which focuses on response, (ii) somatic, which focuses on feeling what others are feeling, and (iii) cognitive, which focuses on understanding. All three are forms of understanding “what other people feel.” Empathy allows individuals to put themselves in others’ shoes, have an understanding of their emotions and experience, and respond to others appropriately. Empathy helps people “connect with and relate to others” (Boyers, 2013). What is the opposite of empathy? The opposite of empathy at its core would be a lack of emotional understanding. Without empathy, executives and business leaders who make decisions that impact countless employees would be unable to consider the emotional and situational reactions of employees during decision-making processes. A leader without empathy can potentially make decisions that decrease employee well-being and employee satisfaction, key determinants of employee retainment. Dr. Peter Shear claims that when leaders are not empathetic, they are more likely to face miscommunications, develop poor relationships, and have toxic workplace cultures (Shear, 2021). “Empathy is a quality of character that can change the world.” - Barack Obama How empathy helps executive coaches Because empathy helps with the understanding of, and relation to, others’ emotions, executive coaches can benefit greatly from the development of empathy. By having empathy, executive coaches are able to combine “both the emotional and the logical rationale that goes into every decision” that is made with a client (Boyersm 2013). An executive coaching company, The Leadership Sphere, summarized this well in their recent article entitled, “Why Empathy is the Most Important Executive Coaching Skill.” They state that by “allowing the client to guide conversation through listening and empathizing, coaches can assist leaders in gaining clarity on where to prioritize their attention… The personal relationship formed between coach and client is one based on empathy and trust.” Empathy can help executive coaches understand the stress and fears of their clients. This understanding can help bring the best insight and guidance at just the right time. Dr. Mark Rittenberg shares an example of this in his TEDTalk, “Leadership is Love.” In his speech, he shares the story of a leader who overcame his faults through the communication of empathy and understanding from his co-workers and superiors. After this business leader shared his story and struggles with others, he experienced empathy and realized his faults as a leader. He even called the experience “a wake-up call” (2017). Executive coaches can harness this power of empathy in their coaching, inspiring “wake-up” calls in their clients and encouraging them to accomplish their goals. How empathy helps executives Dr. Mark Rittenberg quotes a fellow teacher and friend when he shares that “leadership is love” (2017). Being empathetic is a form of love towards others. It is being intentional about understanding others’ emotions and responding to their situations with their emotional needs in mind. According to TEDTalks writer, Jennifer Caleshu, “Bringing empathy into relationships results in new levels of understanding and appreciation of one another and results in heightened communication, partnership, and collaboration in both professional and personal life” (2017). Currently, only 48% of employees believe that their companies are empathetic as a whole. CEOs however are 20% more optimistic about the empathy of their company (Business Solver, 2020). Although business leaders might not know it, there is a need for progress when it comes to corporate empathy. Research has shown that empathy has been consistently linked to business impact and employee wellbeing. “74% of employees said they would work longer hours for an empathetic employer, and 80% said they would switch companies for equal pay if the employer were more empathetic.” Furthermore, “83% of Gen Z employees would choose an employer with a strong culture of empathy over an employer offering a slightly higher salary.” Research has also shown that “employees view motivation, productivity and lower turnover as key benefits of empathetic workplaces” (Business Solver, 2020). The number one prevention of workplace burnout is a business leader’s empathy (Court, 2021). These statistics reveal that the empathetic executive is the employee-preferred executive. Empathetic CEOs are more liked by their employees, their employees are less likely to leave their leadership for more empathetic positions, and are more likely to work longer hours. Empathetic CEOs create devoted employees. Executives who embrace empathy are better able to lead their employees with an understanding of their emotions, challenges, and needs. Empathetic executives are able to put themselves in the shoes of their employees, meet their needs, and better their businesses by bettering their employees. “Leadership is about empathy. It is about having the ability to relate to and connect with people for the purpose of inspiring and empowering their lives.” - Oprah Winfrey How to develop empathy Empathy is an intentional habit, cultivated over time (Dr. Krznaric, 2012). With intentional thought and practice, empathetic habits and abilities can be strengthened over time. Consider the following tips and tricks for developing empathy. Watch for signs of burnout. Workplace burnout is a drastic problem for employees and employers alike amidst the COVID-19 pandemic. The Center for Creative Leadership recommends that in times of high stress, employers should spend extra time and take extra care towards their employees; checking in to see if they are overworked and helping them with the causes and symptoms of overworking. When is the last time you checked in on your employees? Cultivate curiosity. Empathy thrives on genuine concern and curiosity (Center for Creative Leadership, 2020 & Dr. Krznaric, 2012). What do you know about those that you work with? Do you know more than their name and job title? If not, consider asking what they plan on doing over the holidays or having a candid conversation about life and work. This not only benefits your relationship with others, but it also increases the trust that your coaching client or employees will have towards you. Challenge prejudice. Dr. Krznaric shares that prejudice can “prevent us from appreciating [others’] individuality” (2012). If we cannot embrace others’ individuality, we cannot embrace their individual concerns, emotions, or challenges, which is a key to empathetic leadership. What prejudices or assumptions do you have about your employees or coaching clients? How have they hindered you from getting to know their challenges, motivations, and goals? Try another person’s life. Dr. Krznaric also recommends “experiential empathy” calling it, “the most challenging—and potentially rewarding” way to build empathy. In this exercise, you essentially follow the traditional saying, “walk a mile in another man’s shoes…” An extreme but high-impact example of this is George Orwell, a 1920s police officer who submerged himself in the life of “the oppressed.” He lived on the streets with the homeless and the beggars, made new friends, and radically changed his perspective on the homeless population. His views on inequality changed along with his beliefs and priorities. He ultimately wrote a book “Down and Out in Paris and London” (Dr. Krznaric, 2012). Have you considered walking a mile in your employees’ or clients’ shoes? What questions can you ask them to give you an idea of their daily life and journey? Listen well. Listening is vital to empathy development. Without listening, you cannot possibly learn about the challenges, successes, or emotions of others. This requires full attention and being present and in the moment with others. It also requires genuine response and vulnerability when showing your reaction to their stories and struggles. Listening goes beyond hearing and towards an intentional focus on others. Who in your life needs more listening attention? How can you learn more about your employees’ needs and your clients’ goals by listening? Main takeaway Empathy is an often underestimated leadership skill. It allows executive coaches and business leaders alike to consider the needs of others, meet others’ needs, and lead with success. As employees nationwide look for empathy, executive coaches can serve as a guide for executives by helping them develop empathy through intentional action and thought. “Business success depends on empathetic leaders who are able to adapt, build on the strengths around them, and relate to their environment.” - Jayson Boyers Resources Boyers, J. (2013, May 30). Why Empathy Is The Force That Moves Business Forward. Retrieved from https://www.forbes.com/sites/ashoka/2013/05/30/why-empathy-is-the-force-that-moves-business-forward/?sh=172d9a3b169e Business Solver. (2020). State of Workplace Empathy: Executive Summary: Businessolver. Retrieved from https://info.businessolver.com/en-us/empathy-2020-exec-summary-ty?submissionGuid=964be9c3-2749-429c-a0db-0ffe1b71d464 Caleshu, J. (2017, August 11). Leadership is Love: The Power of Human Connections: Dr. Mark Rittenberg: TEDxCincinnati. Retrieved from https://www.berkeleyeci.com/news-articles/2017/8/11/leadership-is-love-the-power-of-human-connections-dr-mark-rittenberg-tedxcincinnati Center for Creative Leadership. (2020, November 28). The Importance of Empathy in the Workplace. Retrieved from https://www.ccl.org/articles/leading-effectively-articles/empathy-in-the-workplace-a-tool-for-effective-leadership/ Cherry, K. (2020, May 02). Why Empathy Is Important. Retrieved from https://www.verywellmind.com/what-is-empathy-2795562 Court, B. (2021, March 17). Emotional Intelligence in Leadership. Retrieved from https://www.ddiworld.com/blog/emotional-intelligence-in-leadership Krznaric, R., Dr. (2012, November 27). Six Habits of Highly Empathic People. Retrieved from https://greatergood.berkeley.edu/article/item/six_habits_of_highly_empathic_people1 Sear, P., Dr. (2021, March 9). 3 Consequences of a Lack of Empathy in Leadership. Retrieved from https://www.psychologytoday.com/us/blog/empathic-minds/202103/3-consequences-lack-empathy-in-leadership The Leadership Sphere. (2021, April 23). Why Empathy is the Most Important Executive Coaching Skill. Retrieved from https://theleadershipsphere.com.au/blog/2021/03/04/why-empathy-is-the-most-important-executive-coaching-skill/ Copyright © 2022 by Arete Coach™ LLC. All rights reserved.

The COVID-19 pandemic has changed the workplace in many ways. Arguably, one of the biggest changes has been where people work. The increase in remote work has tested the adaptability and flexibility of managers and employers worldwide, and raised questions as to how employers should monitor the productivity of employees. Continue reading for insight into the virtual monitoring technology available to help examine employee productivity, the effects this technology has on the productivity of employees, why employers are resorting to these programs, and how they change the employer-employee relationship. “Productivity is never an accident. It is always the result of a commitment to excellence, intelligent planning, and focused effort." - Paul J. Meyer Monitoring software trends The COVID-19 pandemic has dramatically increased the number of employers who are using technology to monitor their employees. In June of 2020, 16% of employers were using monitoring software for their remote employees (Baker, 2020). This number has increased to 78% by July of 2021 (ExpressVPN, 2021). The increase in monitoring software usage has inspired multiple perspectives and reactions. The employers’ perspective Before the COVID-19 pandemic, virtual employee management was a foreign concept to many managers and employees. It has been reported that “the biggest driver behind employers’ growing interest in surveillance is their uncertainty and unease” in employee productivity. Consider the following statistics about the employers’ perspective from ExpressVPN’s research: 74% say remote work makes them feel a lack of control over their businesses 69% feel uneasy about remote work because they can’t observe employees in person 57% don’t trust their employees to work without in-person supervision 59% don’t trust their employees to work without digital supervision Uncertainty and distrust are driving the use of surveillance technology. Having surveillance systems in place gives managers an additional blanket of security against procrastination and fraud by providing detailed statistics about keystrokes, productivity levels, email usage, phone usage, and additional insights. However, managers in the traditional face-to-face workplace would not have access to product information that was this detailed. The employees’ perspective Employees are now faced with learning how to manage home-life and work-life balance without a physical separation between work and home. However, with these challenges, employees are reportedly working more and being more productive (Sorensen, 2021). As surveillance strategies are increasingly incorporated into the remote workplace, employees have several perspectives. Consider the following results from a survey done by ExpressVPN in 2021: 59% report feeling stress and/or anxiety about their employer surveilling their online activity 38% feel more pressure to be actively online than doing actual productive work 36% feel pressure to work longer hours in general 20% feel dehumanized as a result of workplace surveillance 43% say it’s a violation of trust 28% say it makes them feel unappreciated 26% say it makes them feel resentment Employees under virtual surveillance feel distrusted and in some cases like they have a virtual babysitter. Some sources have started calling this surveillance technology “tattleware” or “bossware” because of the implications it has on employees (Bernstein, 2021). “Without proper self-evaluation, failure is inevitable.” - John Wooden Current monitoring softwares There are many monitoring software programs available to track remote employee productivity. A few popular programs include StaffCop, Teramind, Hubstaff, CleverControl, and Time Doctor. These programs all include activity tracking, workplace screenshots, keystroke logging, and screen recording (Finnegan, 2020). On Teramind, employers can log onto the program, see which employees are logged on, what those employees are doing, what websites they are visiting, their total time worked, and their activity levels. There is even an option to see the employee’s screen in live time which allows the employer or manager to take over control of their computer and review their history. Additionally, the employer can see incoming and going emails along with their attachments and contents. The program can also be customized to prioritize certain websites, apps, “behavior alerts,” “printed documents,” “social media,” and “web searches” among many other criteria (Teramind). Other monitoring software allows employers to record employees from their webcam or laptop cameras. CleverControl offers employers options to “record everything” in an employer’s “camera’s field of view.” This allows employers to verify if the employee is doing the work themselves and working when they are logged in. Benefits of virtual monitoring “Technology is best when it brings people together.” - Matt Mullenweg Increased communication Virtual employee monitoring can assist managers and supervisors in identifying those employees who need assistance or additional support in achieving their workplace goals (Jeske, 2021). As employees adjust to remote work, this additional support can be paramount to the employee and corporate success. For example, if an employee is found researching ways to reduce the noise in their workplace environment, employers can contact the employee and offer to supply noise-canceling headphones. However, it is important to ensure that the increased communication does not excessively exceed the traditional workplace’s communication. This could make employees feel like they are overly monitored and increase the likelihood of them feeling overwhelmed. Increased team organization With the data that virtual employee monitoring provides employers and managers, team organization can be optimized. Managers can use productivity data to “help allocate new tasks on time and in line with capabilities of the employee” (Jeske, 2021). If virtual monitoring programs assess what hours employees are most productive, time-sensitive tasks can be allocated to employees that are currently active. Furthermore, some virtual monitoring programs offer assistance for task organization. This allows employers and managers to monitor the progress made on specific tasks. Increased productivity Many studies indicate that there are potential increases in productivity when employees are virtually monitored (Jeske & Santuzzi, 2015). When employees know that they are being virtually monitored, 36% “feel pressure to work longer hours in general” (ExpressVPN, 2021). Virtual employee monitoring programs place additional importance on productivity and have the potential to encourage those employees who are prone to distraction and procrastination to achieve their best work while at home. “With opportunity comes responsibility.” - Winston Churchill Increased likelihood of employee-employer engagement Employers who virtually monitor their employees have the opportunity to use the collected data to further assist their staff. If managers notice that an employee’s level of productivity or production is decreasing, they can address the employee with the goal to understand the drop in productivity and provide support as needed. Employers can also be notified if employees are not taking breaks in order to rejuvenate or refresh. Employers can then encourage employees to take care of their mental health with a periodical break when necessary (Griffin, 2020). This can help reduce the potential for employee burnout and turnover due to stress. Furthermore, if employers notice that employees are exceeding their expectations and meeting goals with great success, employers can then intentionally reward and commend employees who are exceptionally productive or successful (Griffin, 2020). “Be not afraid of growing slowly, be afraid only of standing still.” - Chinese Proverb Potential drawbacks to virtual monitoring Legal and privacy concerns Many employees that are working from home do not have their own private office. This means they can’t guarantee the privacy away from family and guests that traditional office spaces would provide. Employees that do not have a distinct office space are a particularly challenging factor for employers who want to use video camera monitoring because family members such as children and spouses can appear unintended in video recordings. In these cases, employers are “capturing aspects of their [employees’] private lives that [they] have no legal right to intrude” upon (Jeske, 2021). Furthermore, having access to employees’ computer screens, emails, phone calls, and other operations can potentially encroach upon the employees’ private lives. In a recent study, 43% of employees stated that they “are concerned that the introduction of workplace monitoring technology could make it easier for their privacy to be violated” (Zielinski, 2020). When choosing to implement employee monitoring software, it is important to first consult your local legal agencies to ensure that no laws regarding privacy are broken, and then reflect on how your employees’ privacy can be maintained. Furthermore, it’s important to consider the legal ramifications of “future data breaches” that could “reveal sensitive information” about employees’ home and private lives (Jeske, 2021). Workplace culture challenges As discussed in previous sections, the majority of employees feel stressed or anxious knowing that their online activity is being monitored (ExpressVPN, 2021). The negative reactions of employees also affect the overall workplace culture. According to research, “trust in management and teams may quickly be undermined” when remote employee monitoring systems are implemented (Jense, 2021). When surveyed, “73% of employees feel” employee monitoring programs “would damage trust between them and their employers” (Zielinski, 2020). Employees that don’t feel like they are trusted enough to do their work will ultimately lose trust in their employers as a response. Employees want to be trusted and they want to be able to trust their employers. Research also shows that when employees are closely monitored, employees are less likely to volunteer to help their co-workers and act like they are part of a unified team (Jense, 2021). By implementing monitoring systems, employers run the risk of creating a competitive and distrustful virtual workplace. “Management is nothing more than motivating other people.” - Lee Lacocca Risk of employee burnout Employees under intense virtual monitoring can be at an increased risk of burnout and resignation. As previously mentioned, ExpressVPN’s research showed that 36% of monitored employees “feel pressure to work longer hours in general” when they are being virtually monitored (2021). This pressure to work longer hours is not driven by the desire to achieve, but rather by the increased levels of stress and anxiety also reported in research. Other research reports that virtually monitored employees are reporting “work intensification” (Jense, 2021). While this may seem beneficial to overall production levels, it can also be harmful to employees who are already working at a desirable pace. Employees who feel that they need to work especially long hours at intensified rates are more likely to skip necessary breaks for rejuvenation (Jense, 2021). The anxiety-induced need to skip breaks and intensify work can ultimately increase employee turnover, decrease employee engagement and wellbeing, and decrease the quality of productivity (Jense, 2021). Risk of discrimination Without proper oversight, virtual monitoring programs can unintentionally encourage discriminatory practices. If an employer integrates a virtual monitoring system without first customizing the standards of productivity per employee or job, they run the risk of placing standards that discriminate against employees who cannot medically meet those standards (Jense, 2021). For employees that work from home and are also mothers, they may need to take periodic breaks away from their laptop to take care of their children or families. Although these employees soon return to laptops, continue their work, and still attain the 40-hour workweek requirement, the monitoring system might mark their periodic absence as a decrease in productivity. Furthermore, employees with disabilities that have separate standards of productivity might be monitored by standards that do not account for their disability. Employees like these that require flexibility could potentially be marked as absent or distracted by virtual monitoring systems, encouraging managers to take discriminatory disciplinary action. Employers and managers must ensure that their monitoring programs take into account the employees’ need for flexibility and the employment of those with disabilities. Without doing so, specific groups of employees such as parents, those without private offices, those with disabilities, and caregivers can experience disciplinary actions not experienced by other groups. Decreased employee well-being The majority of employees with virtual monitoring systems feel stressed or anxious knowing that they are being virtually monitored (ExpressVPN, 2021). This increase in stress and anxiety can reduce the quality of work, level of productivity, health, engagement, and turnover rates of employees (CorporateWellness, n.d). The overall attitude of employees that are placed under virtual surveillance is also more likely to be negative; decreasing job satisfaction and corporate commitment (Jeske & Santuzzi, 2015). Overall, employees who are virtually monitored are less satisfied with their jobs, more stressed, and more anxious than their non-monitored counterparts. Research also shows that when virtually monitored, employees’ self-efficacy (or belief in one’s own ability and motivations) is negatively affected (Jeske & Santuzzie, 2015 ; APA, n.d.). However, when studied, it was found that when employees’ productivity was monitored as a group, self-efficacy was not negatively affected (Jeske & Santuzzie, 2015). Furthermore, employees who are virtually monitored report feeling untrustworthy and like they are treated as a “machine” (Jeske, 2021). It is vital for employers to understand the perspective of the employees they plan to virtually monitor, and adjust their monitoring programs to best fit both their needs and their employees’ desires. Advice and tips “Clarity is the key to effective leadership.” - Brian Tracy Embrace clarity and honesty One shocking statistic indicates that many employees are unaware that they are being monitored. Currently, only one-third of employees know that their employers are using software surveillance strategies, while 78% of employers report using employee monitoring software (ExpressVPN, 2021). In the workplace, “trust and mistrust” are “further spurred by reports that some monitoring software can be installed without the employees’ knowledge” (Jeske, 2021). However, when employees are informed “why” employers are implementing monitoring software and sharing “how” they plan to measure productivity, employees are reportedly more comfortable with virtual monitoring programs (Kropp, 2019). The Society for Human Resource Management states that “Transparency is key to effective use of monitoring software” (Zielinski, 2020). This can also aid in ensuring the legality of remote employee monitoring. Creating documents that explain the type of monitoring that is to take place with the help of a legal professional can serve as a legal consent form as well as an informative document for employees. Have a clear goal It is important for employers and managers to understand the goal in monitoring employees virtually. Gartner recommends the following series of steps for employers seeking to implement virtual monitoring strategies (Moore, 2019): Identify the reason why you need to measure employee productivity Identify the question you’re trying to answer with the collected data Identify what data you need specifically to answer the previous question Identify who can see the data collected Identify what types of decisions will be made with the data collected Identify the impact that this will have on employees Encourage an open discussion Although there are benefits to virtual employment monitoring, it is important to discuss employee and stakeholder perspectives and reactions to its implementation (Zielinski, 2020). Doing so can mitigate some of the negative reactions that employees may have towards virtual monitoring because of their increased input. Having an open discussion can also reveal ways in which the monitoring program can be customized to alert employers. It can also identify the specific methods of monitoring that employees would view as invasive or most bothersome, which ultimately could decrease the likelihood of negative employee reactions. Weigh the pros and cons Virtual employee monitoring has many benefits but also many drawbacks. It is important for employers to examine each of the benefits and drawbacks and examine how they can be optimized or minimized for their organization specifically. Reviewing responses of employees from similar industries who are now virtually monitored can also help employers distinguish the viability of this management option. “People work in the system. Management creates the system.” - W. Edwards Deming Monitoring software cannot replace management In a Society of Human Resource Management article, David Johnson, a workplace productivity specialist states that “There's no substitute for managers staying in frequent touch with their people, even in remote environments… That's simply good leadership practice that can't be replaced with a productivity tracking tool." Monitoring software provides additional insight into the lives of employees, but cannot be effectively used without good management practices. Stacey Harris, a Chief Research Officer for an “HR technology research and advisory firm” states that organizations who use good management practices that make unique policies “not based only on those outliers but on employees who get their jobs done in the most productive fashion” and make sure that employees have the “support and resources they need to keep performing at the highest levels” are the organizations who “excel” at virtual monitoring. Virtual management software is a great tool for employers when used in combination with good management techniques. The Main Takeaway As virtual employee monitoring becomes more common in the post-COVID workplace, it is important for employers to understand how to best use this new and advancing tool. When used correctly, monitoring programs can increase productivity, employer-employee engagement, communication, and teamwork. However, if not used in conjunction with excellent management techniques and in alignment with your corporation’s needs, virtual monitoring systems can have negative effects on employees. “Leadership is about change...The best way to get people to venture into unknown terrain is to make it desirable by taking them there in their imaginations.” - Noel Tichy Resources APA. (n.d.). Self-Efficacy Teaching Tip Sheet. Retrieved from https://www.apa.org/pi/aids/resources/education/self-efficacy Baker, M. (2020, June 8). 9 Future of Work Trends Post-COVID-19. Retrieved from https://www.gartner.com/smarterwithgartner/9-future-of-work-trends-post-covid-19/ Bernstein, L. (2021, June 22). 78% of employers admit to using digital surveillance tools on remote workers. Retrieved from https://nbcmontana.com/news/nation-world/78-of-employers-admit-to-using-digital-surveillance-tools-on-remote-workers CleverControl. (n.d.). Webcam Video. Retrieved from https://clevercontrol.com/webcam-video CorporateWellness. (n.d.). Workplace Stress: A Silent Killer of Employee Health and Productivity. Retrieved from https://www.corporatewellnessmagazine.com/article/workplace-stress-silent-killer-employee-health-productivity ExpressVPN. (2021, July 16). ExpressVPN Survey Shows Widespread Surveillance on Remote Workers. Retrieved from https://www.expressvpn.com/blog/expressvpn-survey-surveillance-on-the-remote-workforce/ Finnegan, M. (2020, October 29). The New Normal: When work-from-home means the boss is watching. Retrieved from https://www.computerworld.com/article/3586616/the-new-normal-when-work-from-home-means-the-boss-is-watching.html Griffin, J. (2020, June 03). The Pros and Cons of Monitoring Work-From-Home (WFH) Employees Remotely. Retrieved from https://www.griffinbenefits.com/blog/pros-cons-of-monitoring-work-from-home-employees-remotely Jeske, D., & Santuzzi, A. M. (2015). Monitoring what and how: Psychological implications of electronic performance monitoring. New Technology, Work and Employment, 30(1), 62-78. doi:10.1111/ntwe.12039 Jeske, D. (2021). Monitoring remote employees: Implications for HR. Strategic HR Review, 20(2), 42-46. doi:10.1108/shr-10-2020-0089 Kropp, B. (2019, May 03). The Future of Employee Monitoring. Retrieved from https://www.gartner.com/smarterwithgartner/the-future-of-employee-monitoring/ Moore, S. (2019, August 06). Do's and Don'ts of Using Employee Data. Retrieved from https://www.gartner.com/smarterwithgartner/dos-and-donts-of-using-employee-data/ Sorensen, S. (2021, July 07). Digital Nomadism's Impact on Returning to Work Post-Pandemic. Retrieved from https://www.aretecoach.io/post/digital-nomadism-s-impact-on-returning-to-work-post-pandemic Teramind. (n.d.). Teramind. Retrieved from https://www.teramind.co/ Zielinski, D. (2020, August 08). Monitoring Remote Workers. Retrieved from https://www.shrm.org/hr-today/news/all-things-work/pages/monitoring-remote-workers.aspx Copyright © 2022 by Arete Coach™ LLC. All rights reserved.

In August of 2021, Sasa Ding, Frank McDonald, and Yingqi Wei published their research article titled: “Is Internationalization Beneficial to Innovation?” They examined the effects of internationalization on innovation and how research methods can affect results. As we continue to learn more about the importance of diversity, equity, and inclusion (DEI), it is important to stay up-to-date with current findings and research. This helps us not only learn about the importance of DEI, but gives us greater insight on how to increase the diversity of our coaches, clients, employees, or executives. “Cultural differences should not separate us from each other, but rather cultural diversity brings a collective strength that can benefit all of humanity.” - Robert Alan Aurthur The study Review of current research Researchers Ding, McDonald, and Wei state that while most research articles “predict positive outcomes from internationalization,” some identify “negative outcomes” due to “increased uncertainty and complexity.” These research studies used a “variety of theoretical approaches” or methods when conducting their research and as a result, “provide inconsistent findings” due to “contextual factors” such as the development of countries and the different types of internationalization and innovation. Method To get a wide scope view of the effects that internationalization or globalization of a business has on innovation, these researchers chose to do a meta-analysis of all the current research surrounding internationalization and innovation. Their meta-analysis synthesizes all current research, looking for “the more general effects” of internationalization on innovation. When searching for research to analyze, Ding et al. found “99 studies published between 1998 and 2018.” “Real cultural diversity results from the interchange of ideas, products, and influences, not from the insular development of a single national style.” - Tyler Cowen The results Ding et al. summarize their research stating that “internationalization has small but positive effects on firm innovation.” However, they point out “contextual factors” such as firm size, location, and industry. They also indicate that their research supported the importance of the “depth” of internationalization versus the “breadth.” They explain that having deep-rooted internationalization through employees, customers, and executives, and not just “arbitrage operations across different locations,” is “often required to effectively integrate acquired knowledge and resources” from diverse firms. Internationalization with more breadth, however, is likely to be an “important factor in causal change based on organizational learning, network theories, and spillover approaches due to the wider range of knowledge that is available from wide-ranging internationalization.” The implications Ding et al. share that the findings of their research “provide some insights for managers and policymakers.” They state that their findings should encourage business leaders to “assess the evidence for the net benefits” of internationalization “found in studies” of companies similar to theirs while also assessing the potential “risk of adopting inappropriate internationalization.” “Innovation is all about people. Innovation thrives when the population is diverse, accepting, and willing to cooperate.” - Vivek Wadhwa Lessons and learnings How do we apply this research study to our executive coaching or business endeavors? Consider the following key takeaways from this research article. Diversity encourages innovation This research study, along with many others, suggest that the internationalization of businesses and firms increase rates of innovation. Consider the research by Piperopoulos, Wu, and Wang. They state that “outward foreign direct investment” has a positive effect on innovation. As a result, they also encourage business leaders to globalize their businesses in developed countries (Piperopoulos et al., 2018). “Diversity drives innovation- when we limit who can contribute, we in turn limit what problems we can solve.” - Telle Whitney Type of diversity matters: depth vs. breadth Ding et al. state that there are three characteristics of diversity: “breadth,” “depth,” and “speed.” They define breadth as, “the spread of activities across foreign locations” and depth as, “the extent of operations conducted outside the home country.” Ultimately, internationalization of breadth indicates the involvement of many countries while the internationalization of depth indicates that these foreign branches are vital to a business and have deep-seated roots via employees, culture, and financial margins. Ding and the research team state that “depth is more strongly associated with firm innovation than breadth,” however, two other research studies claim that breadth has stronger effects on performance than depth. Ultimately, both forms of diversity are important and have different roles. When engaging in the internationalization of breadth, “arbitrage operations across different locations... enable the diversification of risks and thereby secure better financial or market performance.” However, internationalization of depth can “effectively integrate acquired knowledge and resources in organizational learning and in securing benefits from business networks.” Ding et al, also explain that “only depth is connected to innovation intermediate outputs.” Both forms of internationalization and diversity have merit, therefore business leaders must consider their overall goal for their businesses when deciding how they want to internationalize. The importance of examining research The importance of examining research is also apparent in this article. For executives who lead businesses and make decisions, it is vital that decisions are based on valid and applicable research. Ding et al. state that “robust evidence” regarding innovation and internationalization is “important for managers engaged in developing international strategies” to consider. They also state that “good research design includes addressing important contextual factors” such as business industry, firm size, organizational culture, etc. Different businesses have different needs and are at different stages of development. Consider the graphic below that outlines some contextual factors that differentiate businesses. When examining research and studies to put into practice for your coaching or business, it is important to consider how your contextual factors compare to those of the businesses mentioned in the study. As seen in the graphic above, some contextual factors can include the development and policies of countries involved, the size of the business, the development of a business, and the type of internationalization invested in. All of these factors are considered “moderating effects” on the increase in innovation that comes from internationalization. Before applying findings from research articles to your clients' or your business, it is important to examine all of these moderating effects for optimal profitability and innovation. “Innovation comes ultimately from a diversity of perspectives. So when you combine ideas from different industries or different cultures, that’s when you have the best sense of developing groundbreaking ideas.” - Frans Johansson Main Takeaways This research supports the concept that when businesses and firms internationalize, globalize, or diversify their business, they increase their rates of innovation. As businesses internationalize and globalize, their employees and customers also diversify in race, gender, culture, and religion. Because of this, current research supports the importance of diversity, equity, and inclusion efforts in the workplace. For businesses looking to incorporate internationalization into their organization, they should consider the importance of both the breadth and the depth of their targeted internationalization. Both types of internationalization have value and merit in the workplace and offer different benefits. Because of this, business leaders should examine current research that includes contextual factors that are most relevant to their business such as firm size and country development. “Diversification and globalization are the keys to the future.” - Fujio Mitarai Resources Ding, S., McDonald, F., & Wei, Y. (2021). Is Internationalization Beneficial to Innovation? Evidence from a Meta-analysis. Management International Review, 61(4), 469–519. https://doi.org/10.1007/s11575-021-00451-0 Piperopoulos, P., Wu, J., & Wang, C. (2018). Outward FDI, location choices and innovation performance of emerging market enterprises. Research Policy, 47(1), 232–240. https://doi.org/10.1016/j.respol.2017.11.001 Copyright © 2022 by Arete Coach™ LLC. All rights reserved.

We all know the phrase, “FOMO” (Fear of Missing Out). While this phrase may be more prevalent in personal life, Dr. Marty Nemko points out that many business leaders are held back by a similar kind of FOMO: the fear of losing what you already have. This fear of losing what you already have keeps business leaders from new and impactful opportunities, and hinders organizational development and growth. This insight article reviews the concept, highlights businesses who have fallen short from this fear, and surfaces ways you can help clients mitigate their fear of losing what they have. Fear of losing what you have The fear of losing what you have can manifest itself in many ways. For business leaders, fear of losing what you have can mean having a fear of losing clients, employees, or productivity levels. The heart of this type of fear is the avoidance of change and risk. As technology develops and the global economy changes, it is vital for business leaders to find the root cause of these fears and work to conquer fears and embrace change. Research by Katrina Aaslaid (2019) in 50 Examples of Corporations That Failed To Innovate demonstrates how businesses have let the fear of losing what they have overwhelm their risk-taking, judgment, and decision-making process. These business cases serve as an example of the fear of losing what you already have, and the dangers of not overcoming it. “Fear doesn’t exist anywhere except in the mind.” - Dale Carnegie Nokia’s fear of losing clients Although Nokia created the first worldwide cellular network, they failed to innovate with the development of the internet. While other cellphone companies, like Apple, adapted to changing technology, Nokia feared that they would “alienate current users if they changed too much.” They feared that if they changed too much, they would lose what they already had: their customers. This ultimately led to their downfall while other companies like Apple and Android still thrive to this day by taking risks and staying on top of new technology. Blackberry’s fear of losing current technology In the early 2000s, Blackberry’s technology was “second to none” but their focus wasn’t on user experience. Because they were invested in “protecting what they already had,” they failed to innovate, retain customers, and attract new customers (Lagerstedt, 2018). While they are still around today, their fear kept them from being a leader in the technology industry. Blockbuster’s fear of changing direction With the creation of Netflix and other online streaming platforms, the profits of Blockbuster ultimately plummeted. Although they were offered partnerships with Netflix, they turned them down. According to Aaslaid at Valuer, because Blockbuster “had been the leader of the movie rental market for years, management didn’t see why they should change their strategy.” Blockbuster was in the lead and had a solid market, but times were changing and instead of changing with them, they feared that they would lose the business they already had, failed to change, and ultimately went bankrupt in 2010. “Everything you want is on the other side of fear.” - Jack Canfield How fear hinders growth Clearly, the fear of losing what you have can have disastrous consequences. However, what causes these consequences? What is it about this type of FOMO that leads to the downfall of businesses and their leaders? Avoidance of change Many executives falsely believe that in order to keep what you have, you must continue providing the same products, doing the same things, and having the same goals. However, this does not take into account the changing global marketplace, the advances in technology, cultural shifts, changes in product demand, and the newly developed needs of consumers. While fear holds a business leader in place and prevents them from making industry-leading changes that have the potential to increase their customer base, customers and other businesses are already looking to what is next. This can cause businesses to be left behind as new technology develops and markets change. “Do not fear mistakes. You will know failure. Continue to reach out.” - Benjamin Franklin Prevents necessary risk Although technology was changing, Blockbuster believed that their strategy in the movie rental industry was steadfast. They were blinded by their fear of losing their ground as an industry leader, ultimately causing them to avoid the risk of changing their strategy, which could have saved their business. When business leaders are afraid of losing what they already have, they reject the opportunity to take the necessary risks. As the global market changes, businesses must change their strategy and risk their current customer base in order to create opportunities for more growth and development. If a business leader is a victim of this type of FOMO, they are less likely to take the risks necessary to develop their businesses. Compromised priorities Even the greatest managers and business leaders must ensure that their business’ productivity and production levels are adequate. However, this must be balanced with the priority to develop, maintain, and provide a positive work culture for employees. If a business leader is overcome by a fear of losing current levels of productivity, the priority to provide a positive work environment can be compromised. As a result, they adopt poor management techniques such as micromanagement or hyper vigilance. While this may protect them from reducing productivity levels in the short-term, their fear-motivated management can cause a reduction in productivity and employee retainment over time. “The fears we don’t face become our limits.” - Robin Sharma Reduces rational thinking In the midst of fear, it is hard for the brain to engage in complex and rational thinking. The University of Minnesota explains that when the brain registers fear, it “short-circuits more rational processing paths” and focuses instead on survival. They also state that fear impacts “thinking and decision-making in negative ways” which can lead to “impulsive reactions” and the inability “to act appropriately.” Because of the high-impact decisions that business leaders make every day, it is vital that they make rational decisions for their business. If leaders are overcome by a fear of losing what they already have, their thought processes and judgment becomes clouded by fear, making them prone to poor decisions and outcomes. How executive coaches can help clients The fear of losing what you already have can overwhelm and overcome business leaders if not properly addressed. With the right questions and insight, executive coaches can help their clients overcome this type of fear and guide their clients to success. Consider the following questions and discussions when helping clients conquer the fear of losing what they already have. “Replace fear with curiosity.” - Steven Spielberg Find the root source Executive coaches often help business leaders identify the root sources of their goals, ambitions, and fears. The ICF core competencies share that a vital part of executive coaching is identifying the “factors that influence current and future patterns of behavior, thinking or emotion.” By helping business leaders identify the “factors that influence” or are the root sources of their FOMO, executive coaches can help clients overcome, understand, and develop resistance to this fear (2021). Consider the following questions: What fear leads your action? Where do you think this fear comes from? Why? How do you think you learned this fear? Does this learning apply to this situation specifically? “Nothing in life is to be feared, it is only to be understood. Now is the time to understand more so that we may fear less.” - Marie Curie Discuss consequences Another core competency set forth by the ICF states that executive coaches work with their “client to integrate new awareness, insight or learning into their worldview and behaviors” (2021). This can be done by discussing the consequences of their fear. If an executive has a fear of losing their customer or client base, the executive coach and client can discuss the potential consequences of being led by this fear. Executive coaches can also discuss what research has indicated about the effects fear has on mental processes and decision making. The following questions can be used to discuss the consequences of being led by the fear of missing out. What could be the potential consequences of being led by fear? How do you think your fear is affecting your judgment and decision-making skills? How has fear aided your leadership thus far? “Thinking will not overcome fear, but action will.” - W. Clement Stone Create action plans The ICF states that an essential role of an executive coach is to “design goals, actions and accountability measures that integrate and expand new learning” (2021). As business leaders identify the source of their FOMO and begin to see the consequences of their fear, executive coaches can work with them to create goals and action plans to help overcome it. For example, if an executive is ruled by their fear of losing productivity levels and as a result is micromanaging employees, executive coaches can encourage clients to take note of when they are micromanaging and then choose an alternate path. By creating action plans, executive coaches can help clients identify when they are being ruled by their fears and work to overcome them. The main takeaway The fear of losing what you already have can cripple business leaders’ decisions making processes. As seen in the examples above, this can negatively impact businesses even to the point of bankruptcy. This type of FOMO blinds business leaders to the necessary changes and risks needed in business management and can make them lose sight of their priorities as a result. Executive coaches can greatly impact their clients by helping them identify the source of their fear, the consequences of their fear, and potential action plans that can be developed to prevent being ruled by fear. By doing this, executive coaches help their clients lead their businesses with success, increase their resilience, and improve their decision-making processes. “One of the greatest discoveries a man makes, one of his great surprises, is to find he can do what he was afraid he couldn’t do.” - Henry Ford Resources Aaslaid, K. (2019). 50 Examples of Corporations That Failed To Innovate. https://www.valuer.ai/blog/50-examples-of-corporations-that-failed-to-innovate-and-missed-their-chance ICF. (2021). Updated ICF core competencies - ICF - international coach ... International Coaching Federation. Retrieved November 15, 2021, from https://coachfederation.org/app/uploads/2020/07/RevisedCompetencyModel_July2020.pdf Lagerstedt, E. (2018, December 9). 50 examples of companies that failed to innovate. Innovation, growth & renewal. Retrieved November 15, 2021, from https://inquentia.com/50-examples-of-companies-that-failed-to-innovate/ Nemko, M. (2021, September 13). A FOMO variant: Fear of losing what you have | psychology ... Psychology Today. Retrieved November 15, 2021, from https://www.psychologytoday.com/us/blog/how-do-life/202109/fomo-variant-fear-losing-what-you-have University of Minnesota. (n.d.). Impact of fear and anxiety. Taking Charge of Your Health & Wellbeing. Retrieved November 15, 2021, from https://www.takingcharge.csh.umn.edu/impact-fear-and-anxiety Copyright © 2022 by Arete Coach™ LLC. All rights reserved.

The path to success is wrought with courageous decisions. However, only a small portion of the American population believes that they are courageous (Hiscox). How can the executive coaches of today encourage the development of courage in their clients? What are the benefits of having a courageous mindset and what do courageous people do? “Whenever you see a successful business, someone once made a courageous decision.” - Peter Drucker What courage is Courage is a characteristic of antiquity. It is present in the earliest human writings like the epic stories of Greek heroes. Aristotle considered courage an essential characteristic for the continuation of family lineages and the development of a “rich life” (Putman, 2010). Researchers have found that courage can be learned over time and through experiences. However, the personality of an individual can also affect the amount of courage one possesses (Gruber, 2011). Courage lies between the extremes of “cowardice” and rash “carelessness” and has been defined as the “mental or moral strength to venture, persevere and withstand danger, fear, or difficulty” (Putman, 2010, Merriam-Webster, n.d.). Courage pushes people to achieve their goals, despite the obstacles they may face. It is a driving force that leads people to success, regardless of the hardships. Courage takes what seems impossible and makes it possible. “Courage doesn’t mean you don’t get afraid. Courage means you don’t let fear stop you.” -Bethany Hamilton What courage is not When discussing courage, it is important to note that courage is not reckless “carelessness” in the face of adversity (Putman, 2010). Courage is not the ignorance of challenges, but the acknowledgment of challenges. Courage is strategic, not randomized or last-minute. Courageous people address their challenges directly, refusing to walk blindly into the future. Courage is not fueled by “fear,” “expertise,” or “overconfidence.” Instead, it is the knowledgeable movement forward, with the challenges ahead in mind (Putman, 2010). “Fear is a reaction. Courage is a decision…” Winston Churchill Benefits of courage In today’s industrialized world, courage still has an important role in success. The following are benefits that business leaders and CEOs can glean from the development of courage. When executive coaches work with their clients in courage development, they can expect to see the following results in their clients’ businesses and careers. Benefits for the executive coach Courage can greatly benefit today’s executive coaches. It takes courage to ask powerful questions that inspire change. It takes courage to continually challenge oneself to always be learning new coaching techniques and strategies. Executive coaches must have courage when taking on the responsibility of leading an executive through their challenges and to their goals. Without courage, powerful questions go unasked and executives remain unchanged. “Life shrinks or expands in proportion to one’s courage.” - Anais Nin Benefits for the executive Boldness to take calculated risks. Courage gives business leaders the initiative to take calculated risks. What others would deem as risky, courageous business leaders instead calculate the risks, benefits, and make decisions that are impactful for their organizations. Bill George, a senior fellow at Harvard Business School, explains that “it takes bold decisions to build great global companies. If businesses are managed without courageous leadership, then R&D programs, product pipelines, investments in emerging markets, and employees’ commitment to the company’s mission all wither” (2017). It takes courage to have the boldness to act on calculated risks for the good of a corporation. Increased resiliency. Courage gives business leaders the resiliency to withstand and overcome hardships and challenges. The central theme of courage: facing challenges head-on and achieving goals nonetheless, is immensely helpful when faced with the challenges that often come with running a business (Gavin, 2020). Increased clarity. Leaders who are courageous have a greater sense of clarity, or a vision for the goals they want to achieve (Eades, 2021). Business leaders and CEOs with courage do not readily change their goals in the face of challenges. Instead, they face challenges head-on and maintain their original goal when possible. This goal continuity increases the clarity that the employees and stakeholders of the business leader’s organization have as well. This sense of clarity ultimately benefits each level of the business leader’s company. “The courage of leadership is giving others the chance to succeed even though you bear the responsibility for getting things done.” - Simon Sinek Inspiring leadership. Courage emboldens leaders to inspire their employees to do their best (Trotta, n.d.). It takes courage to push people to their full potential. Executive leaders must face the potential fear of offending or upsetting employees when their performance is poor. Doing this takes courage on the leader’s part, but inspires change and better performance for the employee. Feedback appreciation. Feedback can be challenging for a business leader to accept. When business leaders have courage, they see feedback as a way to improve their business or leadership. (Trotta, n.d.). Without courage, feedback can be seen as a threat to performance or character. It takes courage to accept that there are ways one can improve. When business leaders have this courage, they have the ability to see the ways that they can improve according to given feedback. “Courage is being scared to death...and saddling up anyway.” - John Wayne Stories of courage Business leaders and executive coaches act with courage every day. Consider the following stories of courage and how they have changed lives, impacted businesses, and developed today’s greatest leaders. Don Meyer’s courageous curiosity In episode 1034 of the Arete Coach Podcast, Severin Sorensen and Don Meyers discuss the importance of asking powerful questions. Don shares in this discussion that he always strives to stay in a state of curiosity and courage. Don states that “sometimes I have to be courageous to be curious.” The best executive coaches stay curious and have the courage to act on that curiosity through insightful questions. It takes courage to ask the difficult but necessary questions that inspire and lead to change. Don Meyers has embraced this challenge of courage in his coaching practice. This courageous curiosity has led him to great success in the executive coaching field and inspired his clients to excel in their careers. Alan Mulally’s strategic courage When Mulally started working with Ford, the organization was losing $18 billion that year, but remained “unwilling to address its fundamental issues.” To repair some of these fundamental issues, Mulally borrowed $23.5 billion “convincing the Ford family to pledge its stock and the famous Ford Blue Oval as collateral.” With this borrowed money, he retooled “Ford’s entire product line” and automated the factories. Alan Mulally showed strategic courage in the face of a financial challenge. He had his goal, analyzed the risk, and overcame the financial obstacles. Mulally’s “bold move paid off.” When other Detroit competitors filed for bankruptcy, Ford “avoided bankruptcy, regained market share, and returned to profitability” because of the strategic courage of Alan Mulally (George, 2017). Yiselle M. Dipiní Andreu’s courage despite the storm Yiselle is the co-founder and CEO of StageBoom, a booking platform for musicians. She started her company with her co-founder Charlie Fuentes in Puerto Rico. When Hurricane Maria tore through Puerto Rico, Yiselle’s business was put in jeopardy. All the bookings that clients had were canceled, and the financial ramifications of the hurricane were massive. Instead of cutting their losses and throwing in the towel, Yiselle and Charlie hosted their first concert via StageBoom without any electricity less than three weeks after the hurricane. This concert was dedicated to “giving relief to Puerto Ricans after the hurricane” and served as a financial boost to their community. Yiselle and her team displayed great courage in the face of a physical and financial storm. By having the courage to strategically organize how to continue their business despite challenges, Yiselle has led a successful business and supported her community in doing so (Zipkin, 2018). Indra Nooyi’s courage to change Indra became the CEO of Pepsi in 2016. As she led this company she noticed the upcoming trend of focusing on healthier snacks and beverages. Despite being a primarily soft-drink-focused company, Indra made several organizational changes that supported PepsiCo’s development in the healthy snack category. In 2013, Indra was challenged to split the company, but she remained courageous and continued to invest in the change she had started. PepsiCo’s rival Coca-Cola however, did not invest in change. “As a result, Coca-Cola’s performance has consistently lagged PepsiCo’s.” Because of the strategic and courageous changes that Indra made, PepsiCo’s stock has increased by 70% while their competitor, Coca-Cola, has only had a 15% increase (George, 2017). “Courage is contagious.” - Billy Graham How coaches can inspire courage Clearly, courage has a massive impact on executive coaches and business leaders alike. But how can courage be developed? In what ways can executive coaches harness the power of courage and help their clients be courageous as they lead their businesses? Be an example Having the courage to ask difficult questions and dive into the challenges that are often ignored, can be a great example of courage to an executive coach’s client. As executive coaches lead their clients down a path of discovery, they learn that they can face their fears and challenges head-on, conquering their fears and also developing courage. Discuss what courage means Courage is often misunderstood as the absence of fear (Yeung, 2015). However, it is actually the continuation despite fear. Instead of giving in to fear, courageous individuals “acknowledge that feeling and yet still move” forward with strategy and plan (Yeung, 2015). By intentionally discussing what courage means to a client, executive coaches can correct common courage misconceptions and lead the client to a greater understanding of what true courage is and why it is important for a leader to develop. “Courage is like a muscle; it is strengthened by use.” - Ruth Gordon Plan for courage Practice makes perfect. When executive coaches and their clients identify areas of the client’s career that need courage, both the client and the coach can make an small-step action plan that emphasizes the growth of courage. These baby steps of courage can surmount great change in business leaders’ own tendency to be courageous, ultimately benefiting their careers, their businesses, and their employees (Yeung, 2015). Identify values A key component of having courage is having a reason to be courageous. “Courageous action is primarily motivated towards a worthy purpose” (Hammerman, 2009). A courageous person knows their values, has their goals, and uses their courage to help them attain their goals. When executive coaches help their clients identify what their values are and how these values attribute to their goals, they are taking steps towards courage development. The main takeaway Courage is an essential characteristic of the successful executive coach and business leader. It is what encourages leaders to push through challenges despite their fears and achieve their greatest successes. Business leaders and executive coaches alike gain many benefits from courage such as boldness and resiliency. These benefits can have great positive impacts on an executive’s businesses and leadership skills. Because of these benefits, executive coaches are encouraged to guide their clients through the development of their own courage. “Courage is the most important of all virtues because without courage, you can’t practice any other virtue consistently.” -Maya Angelou References Eades, J. (2021, March 11). Why Courage Is The Key To Great Leadership. Retrieved from https://www.linkedin.com/pulse/why-courage-key-great-leadership-john-eades/ Gavin, M. (2020, March 03). 5 Characteristics of a Courageous Leader: HBS Online. Retrieved from https://online.hbs.edu/blog/post/courageous-leadership George, B. (2017, April 24). Courage: The Defining Characteristic Of Great Leaders. Retrieved from https://www.forbes.com/sites/hbsworkingknowledge/2017/04/24/courage-the-defining-characteristic-of-great-leaders/?sh=19e6594511ca Gruber, C. (2011). The Psychology of Courage: Modern Research on an Ancient Virtue. Integrative Psychological and Behavioral Science, 45(2), 272-279. doi:10.1007/s12124-011-9155-x Hammerman, T. (2009). Encouraging Courage. Clinical Science Insights Knowledge Families Count On, 10. Hiscox, & Forbes. (n.d.). Hiscox-American Courage Index Winter 2016 Update (Rep.). doi:https://www.hiscox.com/documents/Hiscox-American-Courage-Index.pdf Merriam-Webster. (n.d.). Courage. Retrieved from https://www.merriam-webster.com/dictionary/courage Putman, D. (2010). Philosophical roots of the concept of courage. The Psychology of Courage: Modern Research on an Ancient Virtue., 9-22. doi:10.1037/12168-001 Trotta, J. (n.d.). Why Courage Matters: Six Lessons for Leaders. Retrieved from https://emergenetics.com/blog/why-courage-matters-six-lessons-for-leaders/ Yeung, K. (2015, May 12). Research Paper: Courage. Retrieved from https://coachcampus.com/coach-portfolios/research-papers/kathryn-yeung-courage/ Zipkin, N. (2018, May 11). 3 Women Entrepreneurs Share Their Stories of Courage, Community and Innovation 8 Months After Hurricane Maria. Retrieved from https://www.entrepreneur.com/slideshow/313249 Copyright © 2022 by Arete Coach™ LLC. All rights reserved.

Emotions are a unique and essential part of humanity. They affect the way we make decisions and in turn, affect our corporations and communities. But what are emotions exactly? How do emotions affect our decisions, and how can we manage emotions effectively when making important choices? Continue reading for the answer. What are emotions? Emotions, according to Lisa Barrett, are physical, psychological, and social reactions taking place in both the body and mind (Barrett, 2012). For example, if you are given an award you are likely to physically smile. This smile supports a neurological rush of dopamine, commonly called the feel-good hormone, and tells the community near you that you are pleased. Emotions are a full-body experience with intricate neurological components and important effects on the way an individual sees the world and makes decisions. They incorporate the use of our biology, physiology, and community to help us navigate the world around us. Emotions can also be classified into two separate groups: The first group is state-emotions. These are the type of emotions commonly referred to in non-academic circles. These emotions are based solely on the situation an individual is placed in (Wang et al., 2016) There are also dispositional emotions. These are the general emotions that an individual is prone to having regardless of the situation (Wang et al., 2016). For example, an individual diagnosed with anxiety might have a dispositional tendency to be anxious. By understanding that we have emotions based on the things we experience and our own base-line dispositions, we can realize that emotions do not happen to us, but are our reactions on a complex physiological, biological, and social level. This realization gives us the ability to look at our emotions as a tool rather than the single guidepost in making important decisions. How do emotions affect our decision-making process? According to Wang, Gu, Luo, and Zhou, “Human emotions play a powerful role in the decision-making process” (2016). The emotions we feel and experience on a daily basis are not isolated sensations. They have the ability to affect major decisions and have a great impact on our business, relationships, and goal achievements. Wang et al.’s study sought to investigate the influence of state emotions on decision-making processes in those with high and low anxiety emotional dispositions. Their research was done with 121 students and the use of facial expression photos paired with high and low bet amounts. After analyzing the data collected, it was found that “participants spent more time to make decisions in expression conditions compared to the control condition” (Wang et al., 2016). This means that the energy, which should have gone into the decision at hand, instead went to processing the facial cue that was presented. Because of this, it took more time for participants to make decisions when also processing emotions. In the corporate view, this isn’t inherently a bad thing but it does require that the increased need for time is accounted for in decision-making situations. Instantaneous decisions are made without full use of available cognitive resources, which could potentially lead to failures or poor decisions for an executive leader. Another significant finding in this research article was that participants were more likely to expect higher gains when given positive facial expressions (Wang et al., 2016). In the marketing world, this technique is avidly used. When we want to make a sale or receive benefits in general, we smile at the individual we are communicating with. It is common sense that this will help sales and gains, but when applied to more complex decisions it is easy to see how we can be on the receiving end of this unintended manipulation. When making important decisions, it is important to ensure that you or your audience’s disposition is not influencing your decisions in an unhealthy way. It is possible for both parties to be genuinely happy at a communal agreement, but it is important to check-the-facts and look at the long-term consequences of the decision without regard to current state-emotions. An article from Psychology Today written by Shahram Heshmat summarizes the broad effects that emotions can have on decisions well: “Certain vulnerable situations tend to trigger impulsive choices. By becoming more aware of our emotions, we experience ourselves as free rather than victims.” -Shahram Ph.D. From his perspective, emotions can “influence judgments” because they are tied to previous experiences. He calls this “Mood-Congruent Memory” (Heshmat, 2019). By recognizing the potential bias we hold towards certain situations, we can accurately address decision-making situations with this in mind. For example, imagine that the leader of a corporation has had negative experiences with one contracting company. The failings of this contracting company left them feeling disappointed and stressed due to the increased amount of work caused by their failings. Because of this, they are hesitant to engage other contracting companies. If this corporation’s leader takes into account the emotions they experienced with the previous contracting company and factually realizes that one contracting company cannot represent all of them, they are more likely to consider engaging in a different contracting company that will better suit their needs. By addressing previously experienced emotions, corporate leaders are empowered to make new decisions, learn from previous failures, and pursue new opportunities without bias. How can we address our emotions effectively? First, Recognize By recognizing the emotional experience at hand, business leaders can begin the process of decision-making with the potential effects discussed earlier in mind. In an article from Forbes Magazine, Erik Larson elaborates on this. He states that the emotion of anger can cause teams to be “distracted by unimportant information and leap to short-sighted solutions” (2018). By recognizing the anger before experiencing these negative side effects, the emotion can be properly handled thus minimizing the potential negative effects. Second, Confront Larson recommends writing down the emotions you are experiencing as a start of emotional recognition. By naming and engaging the emotion that is present, you can gain a wider perspective of the situation and all potential outcomes while avoiding emotional biases and wasting energy. He claims that after writing down your emotions, you can begin the processes toward a calmer more thought-out decision that is based on facts and realistic outcomes. Furthermore, writing down the effect that these emotions are having on your thoughts regarding the decision at hand allows you to gain a better understanding of the potential biases you may hold towards viable options. Third, Adjust After recognizing and confronting the emotions at hand, it is important to adjust your position as needed. If upon the realization that you hold a potential negative bias fueled by the emotions from past experiences, adjust your focus to include the options again if appropriate. Are the negative emotions you hold toward a certain decision based on current facts and potential outcomes, or are they inconclusive with the current situation? If the emotional reactions held toward options available are not based on current facts and inclusive, consider changing your position to include this option again. What does it all mean? While emotions are complex and essential to our functioning, they can also be misused in the decision-making process. With the research discussed in this article, we can see that emotional processing takes up valuable energy, emotional states can manipulate our decisions without proper evidence, and previously experienced emotions can be tied to current decisions—even when they don’t correlate with the current situation. Because of this, it is important to recognize the emotions we are experiencing, confront our emotions by writing them down and analyzing their validity, and adjusting our positions based on our findings. By doing these things, we can further ensure that our decisions, while taking emotions into account, are based on factual evidence and current information regarding the decisions at hand. References Barrett, L. F. (2012). Emotions are real. Emotion, 12(3), 413–429. https://doi.org/10.1037/a0027555 Heshmat, S. (2019, December 10). 9 ways your Emotions influence your judgments. https://www.psychologytoday.com/us/blog/science-choice/201912/9-ways-your-emotions-influence-your-judgments#:~:text=Individual%20decisions%20are%20best%20understood,decide%20to%20keep%20you%20cool. Larson, E. (2018, August 8). How The Most Common Emotions Affect Business Decision Making And What To Do About It. Forbes. https://www.forbes.com/sites/eriklarson/2017/03/21/how-common-emotions-affect-team-decision-making-and-what-to-do-about-it/?sh=2d4195172896. Wang, Y., Gu, R., Luo, Y.-jia, & Zhou, C. The interaction between state and dispositional emotions in decision making: An ERP study. Biological Psychology, 123, 126–135. https://doi.org/10.1016/j.biopsycho.2016.11.009 Barrett, L. F. The New Scientific Understanding of Emotions. Institute of Coaching. https://instituteofcoaching.org/resources/webinar-new-scientific-understanding-emotions. Copyright © 2021 by Arete Coach LLC. All rights reserved.