Lessons for SME's Working from Home

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Lessons from SME’s working remotely In partnership with:


About me – short introduction SKILLS

Tadeuš Dobrovolskij 80%

Operations management

70%

Strategy

60%

Finance

30%

Marketing

70%

Change management

tdobrovolskij 05-995-3452

MBA GPA 3.79/4.00, #1 in class Industries: ✦ VC ✦ Telecom ✦ Railway transportation ✦ Software development ✦ Construction ✦ Defense

Markets: ✦ USA ✦ Germany ✦ UAE ✦ Lithuania ✦ Egypt

Born in Lithuania. 12 years of professional experience, 6 years in consulting, where I met wonderful people throughout the world and helped big multinational corporations and small businesses alike.

https://www.linkedin.com/in/tdobrovolskij/


About Empyrean Advisors – a brief overview DACH Vienna, Austria

North America (HQ) Salt Lake City, Utah, USA

Empyrean Advisors started in the year 2016. The ancient Greek word Empyrean denotes the highest point in heaven. To us it means the realization and accomplishment of dreams.

The dreams of our clients are our mission.

EMEA Dubai, UAE

Australia & Oceania Sydney, Australia


Part 1: Understanding the problem


Two main challenge categories: people & logistics 28% Coordinating work

20% Managing time zone differences

32% Establishing trust

8% Holding people accountable

12% Dealing with cultural differences

Most companies struggle with people-related challenges (52%) in the remote work environment according to our study.


All humans share common motivators

SOCIOLOGISTS FIND 3 COMMONALITIES: NEED FOR ATTENTION AND APPROVAL People want to be a part of a team/community/family. We want intrinsically to get along and avoid isolation/exclusion. Rejection causes loss of identity and stress. People who have a healthy social life tend to live longer and happier. NEED FOR STATUS AND POWER Similar to chimps, humans want to get ahead within the hierarchy, attain more status. This drives us to achieve more, and, at the same time, causes people to fear a potential loss of power and control of resources. Depression usually accompanies those who experience such a loss. NEED FOR PREDICTABILITY AND ORDER Humans feel the need to explain their existence, find meaning and purpose. If life makes no sense, people feel anxiety and tend to lose motivation. Normally this need is being expressed through philosophy and religion, in work settings – mission statements and townhall meetings.


Remote work challenges human needs CHALLENGES TO GETTING ALONG Less human interaction erodes trust and creates a lack of support feeling. People feel lonely and isolated. Teams risk to become dysfunctional. CHALLENGES TO GETTING AHEAD Quality and speed of decision making decreases. People experience frustration with lower quality and and quantity of output. Less exposure means less recognition. DANGER AS THE PARADIGM SHIFTS

CHALLENGES TO FINDING MEANING Sudden shift to remote work creates uncertainty. People feel that they are losing control. Increase in messages can cause information overload.


Different leadership approach is needed

Cultivating approval ✦ ✦ ✦ ✦ ✦ ✦

Be empathetic Show interest Include everyone Provide support Foster team interaction Create a family spirit

Achieving goals ✦ ✦ ✦ ✦ ✦ ✦

Clarify roles Define priorities Provide tools Empower to act Build skills Recognize and reward

Providing meaning ✦ ✦ ✦ ✦ ✦ ✦

Communicate Connect the dots Clarify expectations Provide feedback Focus on purpose Be the “rock”


Part 2: Giving attention and approval


Building trust is more difficult in a remote team Members of a Successful Team: Inattention to

1

Trust each other.

Avoidance of

2

Engage in unfiltered conflict around ideas.

Lack of

3

Commit to decisions and plans of action.

Fear of

4

Hold one another accountable for delivering against those plans.

Absence of

5

They focus on the achievement of collective results.

RESULTS

ACCOUNTABILITY

COMMITMENT

CONFLICT

TRUST

Absence of trust means that the team is either fully dysfunctional or new.


Hofstede insights help with multi-cultural teams Power, community and uncertainty are perceived differently in the US 100 90 80 70 60 50 40 30 20 10 0 Power Distance

Individualism

Masculinity USA

!

Uncertainty Avoidance UAE

India

Long Term Orientation

UK

Data on “Long Term Orientation” and “Indulgence” for the UAE are not available.

Indulgence


Hofstede dimensions are easy to understand

Power Distance

The extent to which the less powerful members of institutions and organizations within a country expect and accept that power is distributed unequally.

Individualism

The degree of interdependence a society maintains among its members.

Masculinity

The fundamental issue here is what motivates people, wanting to be the best (Masculine) or liking what you do (Feminine).

Hofstede’s cultural dimension theory was developed by a Dutch social psychologist. It highlights the main cross-cultural differences and helps us understand people from other countries better. There are six parameters (dimensions) that are being measured, which explain how an average person from a particular country views and interacts with the world.

Uncertainty Avoidance

The extent to which the members of a culture feel threatened by ambiguous or unknown situations and have created beliefs and institutions that try to avoid these. For more information go to www.hofstede-insights.com

Long Term Orientation How every society has to maintain some links with its own past while dealing with the challenges of the present and future.

Indulgence

The extent to which people try to control their desires and impulses.

The framework is widely used in: ✦ International communication ✦ International negotiation ✦ International management ✦ International marketing However, as with all generalizations, we need to be careful. Individual representatives can differ significantly from the average.


Part 3: Delivering performance


Processes are vital for a remote team High

Task Processes High

TEAMS WITH HIGHLY DEVELOPED PROCESSES By capitalizing on special knowledge and expertise of all their members, such teams are able to show remarkable performance even when spread out around the globe. These teams usually have also team building (socialemotional) processes in place. TEAMS WITH A LOW LEVEL OF PROCESSES These teams show a drop in performance even if their members are based on a different floors in the same building. As the distance increases, performance drops even further, because factors like cultural differences come into play.

Team Performance

About the research ✦ 80 software development teams ✦ 28 labs worldwide ✦ From 20 to 5500 developers per lab ✦ Each team up to nine members ✦ 392 managers, team leaders and members participated

Task Processes Low

Low Low

Dispersion

High


Teaching time management for max performance

Pomodoro technique Working on a specific task for 25 minutes straight and having a 5 minute break afterwards.

Getting things done Comprises of a framework defined by 5 steps: capture, clarify, organize, reflect, engage.

Ideal for people who: ✦ Are often tempted by distractions ✦ Tend to work best under pressure ✦ Tend to have a short attention span

Ideal for people who: ✦ Struggle with organization ✦ Feel overwhelmed by too many things to do ✦ Work well with high levels of structure


GTD is a simple framework that does wonders Record (“Collect”) every action that you need to take

No Is it actionable?

Trash Someday

Inbox YES No

“Engage”

Delegate

No

No YES

Specific date?

A single step? YES YES

Is it for me?

Projects

No > than 2 minutes?

Do it!

YES Additionally, you need to review your tasks frequently, e.g. once per week.

Schedule


Recognizing good work is critical for motivation Factors affecting job attitudes as reported in 12 investigations* Security

Hygiene factors

Status Relationship with subordinates Personal life Relationship with peers Salary Work conditions Relationship with supervisor Supervision Company policy Growth

Intrinsic motivators

Advancement Responsibility Work itself Recognition Achievement -40%

-30%

-20%

-10%

0%

Factors characteri zing 1,844 events on the job that led to extreme dissati sfaction * - from “One more time� by Frederick Herzberg

10%

20%

30%

Factors characteri zing 1,753 events on the job that led to extreme satisfaction

40%

50%


Part 4: Providing meaning and purpose


Organizational health is more important than ever

1. BUILD A TEAM

2. CREATE CLARITY

A group of people who are ✦ collectively responsible for achieving a common objective Dysfunction at the top leads to a ✦ lack of health throughout the entire company

1

BUILD A STRONG, HEALTHY, COHESIVE TEAM

2

CREATE CLARITY

Leadership team must be intellectually aligned and committed

There can be no daylight between leaders around fundamental issues

Organizational health 4. REINFORCE CLARITY Organizational clarity must ✦ become embedded into the fabric of the company There must be a few critical, ✦ non-bureaucratic systems in every process for this purpose

4

REINFORCE CLARITY

3

OVERCOMMUNICATE CLARITY

3. OVERCOMMUNICATE ✦

Communicate to employees using various channels clearly and enthusiastically

There is no such thing as too much communication


Communicate, communicate, communicate TYPES OF COMMUNICATION

1

Cascading communication:

Leaders communicating their decisions to their direct reports and having those direct reports do the same for their own direct reports.

Top-down communication:

2

Email announcements, meetings, social media, newsletters, town halls.

3

Upward / lateral communication:

Allowing employees to communicate with leaders through the executive hierarchy, ground-up.

Repetition is more than just a matter of communicating something again and again in the same way. Effective communication requires that key messages come from different sources and through various channels, using a variety of tools. The most effective means of communicating a message, even in a large and far-flung organization, is word of mouth.


Purpose

Purpose

Values / Principles

Values / Principles

Vision

Vision

Strategy

Strategy

Execution

Execution

“Ad ap tiv e”

“Te

ch nic al”

Flipping the pyramid builds a resilient culture


Part 5: Summary


Five steps to better distributed working BUILD RESILENT PROCESSES Standardized processes are paramount for a distributed team. Unlike in a traditional office, asking questions requires a substantial amount of effort.

FOSTER ACCEPTING TEAM SPIRIT Be empathetic and understanding. Know your team well. Involve everyone. Do not ignore small talk – make sure that people feel at ease.

UNDERSTAND THE CHALLENGES Humans fear isolation and loneliness. It’s more difficult to build trust remotely. Performance could suffer due to low coordination and time zone differences.

EMPOWER, RECOGNIZE WINS Employees should be able to work independently. Provide tools and use a hands-off management approach. Track performance through KPI’s. Elevate status by recognizing good work.

PROVIDE PURPOSE AND MEANING Be a leader. Ensure that every task makes sense to your team. Purpose and meaning are more important than execution in a remote work environment.


QUESTIONS? E-Mail: tdobrovolskij@empyrean-advisors.com



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