26 minute read
GUEST
Want to Keep Those Good Employees?
Here’s the No. 1 reason they leave, and what you can do about it.
BY ROHAN WALVEKAR, MD
VOLUMES OF DATA SUPPORT THE VALUE OF recognition to bottom-line performance. We know this, even without external data supporting the statement, because it makes logical sense.
Reflections on what motivates employees inevitably conclude that we work harder and with more heart for those who value our contribution. Recognition influences us beyond the visible spectrum. It motivates us, fills our emotional bank account, instills commitment and fuels productivity.
Data backs up what we intuitively know; recognition is a critical component for organizational success. • Over 75% of employees who quit their jobs identify lack of appreciation as a reason. The U.S. Department of Labor
Statistics states lack of recognition as the No. 1 reason employees voluntarily leave their jobs. • More than 60% of respondents list appreciation as a significant motivator of performance. • Greater than 90% of employees identified as highly engaged state their leaders provide effective recognition. • Substantive data supports the link between effective recognition and operational results, specifically productivity, engagement, retention and customer satisfaction. Recognition directly affects the bottom line.
We know the power of recognition, yet reports share that 70% of the workforce feel underappreciated. We have a “Knowing-Doing” gap.
BRIDGING THE KNOWING-DOING GAP Why is there such a gap between what we know, that recognition of employees is core to business success, and what we do (or are not doing), which is the act of providing timely and meaningful recognition?
The most common reason offered for not giving recognition is a lack of time. Other reasons shared are a lack of skill, being unaware of recognizable actions, or “It’s just not my personality.” While this article does not address all the issues that contribute to bridging the Knowing-Doing Gap, we attempt to address a few easily correctable contributors.
Lack of Time: Often, lack of time and busy schedules with competing priorities are quoted as reasons for not prioritizing team engagement and recognition. Many organizations develop elaborate employee recognition programs to solve this problem, and this can overcomplicate the solution. The reality is that the harder it is to do something, the less likely you are to do it. When it comes to recognition, reduce the barriers and provide tools that are easy to use. Ultimately actions are what count, not elaborate plans. A thank you card delivered to your employee’s home is a lovely gift — truly. However, writing a card can become a barrier and can prevent action. Finding an easier way
Rohan Walvekar,
MD, created nDorse in 2015. A digital recognition platform that allows team members and leaders to provide timely and meaningful recognition and reinforce organizational values with each celebration, nDorse is currently helping celebrate over 20,000 healthcare professionals and has served our healthcare community by being a tool used to capture over 75,000 recognition moments during the COVID-19 pandemic. For more information, visit ndorse.net or email Dr. Walvekar at rwalvekar@ ndorse.net
to provide recognition, such as a digital recognition tool, can reduce or remove obstacles.
Unaware: You are likely aware of more opportunities to recognize the actions and behaviors of others than you believe. Consider the interactions you had during your day or observations you made as you walked through your place of work. Did Sue at the front desk greet you with a cheery “Good morning” and smile as you arrived? And does she do this every day? That she is a consistent bright point in your morning is worthy of recognition. Reinforcing positive behaviors demonstrates that you value the individual. A ripple is created with each moment of recognition and has the potential to create a wave of change and define the culture of an organization.
Lack of Skill: Giving meaningful, pointed, real-time recognition requires a bit of skill. We might cite “lack of time” as our primary barrier to providing recognition when we instead lack the skills. Meaningful recognition is specific. When you have observed someone do something worthy of mention, go beyond the generic “great job!” and get specific. Most people want to improve, yearn to learn, and want to make a difference. This is only possible with authentic and constructive feedback. There is a formula you can use to master this skill: Action + Impact. Mention the action you witnessed, and then share the impact it had on you or others. For example: “Thank you, Sue, for always greeting me with such a cheery “good morning” and genuine smile. Your consistent energy and positivity resets my mood, and I find I am more joyful in my heart as I walk towards my office.”
RECOGNITION POSITIVELY EFFECTS THE RECEIVER AND THE GIVER Rhonda Bagby shared in an article published in Biz New Orleans in February 2021 the benefit of a practice of gratitude. Bagby wrote, “One proven route to improving physical and mental health is through the simple act of practicing gratitude. Gratitude means deliberately expressing thankfulness, acknowledging life’s blessings, and showing appreciation for what you have.” This practice includes expressing gratitude or appreciation to another person.
Bridge the gap and begin doing — it will elevate the spirits of the receiver and yours as well. n
NINETY PERCENT OF BUSINESSES IN THE U.S. ARE FAMILY AFFAIRS AND THEY FORM A CRITICAL COMPONENT OF OUR LOCAL ECONOMY. THEY ALSO FACE UNIQUE CHALLENGES, WHICH IS WHERE TULANE’S FAMILY BUSINESS CENTER CAN OFFER INVALUABLE SUPPORT.
IT’S A FAMILY
BY CHRIS PRICE PORTRAITS BY CRAIG MULCAHY AFFAIR
DDEFINED AS ANY BUSINESS in which two or more family members are involved and majority ownership or control lies within a family, family-owned businesses are the foundation of the U.S. economy, but they face unique issues and challenges.
According to an old adage, “The first generation builds the business, the second generation grows the business, and the third generation squanders the business,” but in reality only 30% of family businesses today succeed to the second generation and only 10% succeed into the third generation.
To improve the odds that family businesses find success, Tulane’s A.B. Freeman School of Business formed the Family Business Center (FBC) in 1992. Its mission is to provide support in the form of professional expertise, systems and educational resources that assist family businesses with managing their enterprise and increase their prospects for transitioning to the next generation.
Membership to the center is open to anyone whose family has a majority ownership of a company, even if they themselves are not employees of the business. Member benefits include networking opportunities with other center members who have experienced the unique challenges of the family-owned business, updates on the latest research and articles on family business, access to all of Tulane University’s libraries and the family business collection housed in the business school library, and direct access to the FBC staff for discussion and referral on specific issues.
To learn more about the FBC and the top issues facing family businesses today, Biz chatted recently with Rosalind G. Butler, director of Tulane University’s Family Business Center. Butler has spent 22 years at the university working in entrepreneurship. Among her accomplishments are serving as staff adviser for the Freeman Consulting Group and Tulane Entrepreneurs Association, where she established the first business plan competition, now in its 20th year.
After being engaged with the FBC off and on for five years, Butler said she developed a strong relationship with some of the members and grew to have a high regard and interest in family business.
“Family business is just a natural evolution of entrepreneurship,” she said, “especially down South where relationships are very familiar and communal in nature. This bodes well for family businesses.” In addition to serving as the FBC’s director, Butler became a member of the Family Business Directors Alliance Group, an association of directors that manage approximately 54 centers across the U.S. and Canada.
In a recent chat, we asked her to weigh in on the biggest issues affecting this unique, but critical, sector of the business world. What do family businesses mean to our country? At the risk of sounding cliché, family businesses truly are the cornerstone of the U.S. economy. According to the U.S. Census, they represent 90% of businesses in the United States, make up 60% of our national GDP, employ 83.3 million people and represent 59% of the private sector workforce. They drive innovation and are producers of the next generation of entrepreneurs. The vast majority of startups around the world are family businesses.
Family businesses are also very philanthropic. According to consulting company Family Business USA, 93% of family businesses are engaged in some form of social or philanthropic endeavor. In fact, the Albert Lepage Center for Entrepreneurship and Innovation, where The Family Business Center is located, was named on behalf of alumnus Albert Lepage, the retired co-chairman of family-owned Lepage Bakeries, which has since been acquired by Flowers Food Inc. What do they mean for our regional economy? We are fortunate that this region has fifth-, sixth-, and even seventh-generation family-owned businesses. However, we haven’t been able to collect enough data to confirm the number of family businesses. I am working with our graduate students to develop this database. I am hoping to collaborate with our other partners to get a clearer picture.
WHO DO YOU LOOK UP TO? Too many to name. Just ordinary people who intentionally live to better the lives of others.
BIGGEST LIFE LESSON LEARNED?
Things are replaceable, people aren’t. FAVORITE BOOK? I Know Why the Caged Bird Sings by Maya Angelou
FAVORITE TV SHOW? King of Queens
How do family businesses operate differently than non-family businesses? Family businesses can be less formal — and I don’t mean that in in a negative sense. Having access to decision makers can be less complicated. Family business employees also often wear multiple hats that require DID YOU KNOW? utilizing different skill sets. This allows employees to explore varying aspects of the business. It can also be problematic, however, if roles and responsibilities are too loosely defined. The greatest advantage of being a part of a family business is their level of loyalty and commitment to their stakeholders. Some of the biggest companies in the world are family businesses. Aome obvious ones iinclude WalWhat are the biggest issues affecting family busi- Mart and Berkshire nesses? Succession and next-generation leadership develop- Hathaway, but other ment are still the biggest challenges for most. I speak with our surprising titans that members all the time, and succession continues to be at the top of the list. There is a lot at stake for founding or current family business owners and some are not feeling fully ready to entrust the next generation with ownership and management of the business. There is a great consideration for non-family employees and job security, established business relationships, and maintaining a valued reputation if the business doesn’t do well after the handover. On the other hand, the next generation can feel stifled by the ambiguous notion of “someday,” remain family-owned include: Cargill Mars Bechtel Comcast Ford Motor Company Porsche Automobil Holding BMW AG when there is no defined timeline or the path to retirement is ALDI Group constantly changing. Nike
As part of the Family Business Center’s vision for LG Corporation addressing both sides of this conundrum, we have started Dell Technologies working to establish the NextGen Family Business Leadership initiative. The center spent a year and a half In Louisiana, just with Trepwise Consulting on developing and launching its a few large, famiNextGen survey to 500 family-owned businesses, conducting ly-owned businesses 50 one-on-one interviews with owners and family executives, include: and hosting five NextGen focus groups with family business Laitram Corporation, employees. In addition, we assessed 76 other universi- The McIlhenny Co. ty-based and non-university-based family business centers Canal Barge across the country. The research also included reviewing the Bollinger Shipyards top 50 MBA programs, top 25 exec education programs, and 25 top-tier undergraduate business programs.
We wanted to ensure that we are taking a fully comprehensive approach to establishing the NextGen Family Business Leadership program. The survey findings indicated that there are limited vehicles for training and developing NextGen family business members. The FBC seeks to bridge the gap by bringing a systematic approach for adequately preparing NextGen leaders. Does this type of business typically face any other pitfalls? Never allow the family business to be a testing place for family members who are deciding what they want to do professionally or with the rest of their life. When they come into the business, a person should have skill sets and talents that add value to the business, and in return, the business should provide opportunity for growth that comes with defined roles and responsibilities. Bringing in a family member who isn’t a good fit could have long-term implications far beyond addressing their immediate needs. What advantages do family businesses have? Family businesses have a lot of positives. There is a greater alignment in leadership because there is a shared vision and DNA. Family businesses are more committed to their non-family employees and often view long-term employees as extended family. They are also less likely to execute layoffs. They are more risk averse and are less likely to take on debt, making them more sustainable during tough economic time. They also can pivot more quickly when quick decisions need to be made. They don’t have a lot of bureaucracy that you can find in corporate settings. How did the Tulane Family Business Center come about? When the Tulane Family Business Center was established in 1992, it was under the division of the Levy-Rosenblum Institute, where Dr. John Elstrott served as executive director. Elstrott was a serial entrepreneur and the former chair of Whole Foods. Under his tenure, he served on the board of many family businesses and saw there was a need for these companies to learn how to function as a family in business. In 2015, a named gift from Mr. Lepage created the Albert Lepage Center for Entrepreneurship and Innovation, which now houses the Levy-Rosenblum Institute and the Family Business Center at the Freeman School of Business.
During this time there were a couple of universities providing services to support family firms and the center used this as a model for building its program.
Our purpose is to offer a platform where family business members can come together and learn, have open discussions about what concerns them, develop strategies that minimize emotional decision-making, and gain insights that will allow them to grow and flourish from one generation to the next. What kind of services does the center provide? We offer five half-morning forums per year that are facilitated by professionals, thought leaders, and experts who are nationally and internationally recognized in family business education. The topics are very germane to family business. This includes estate planning, establishing family governance, family councils, conflict resolution, next-generation leadership and succession.
Participants are guided through case studies based on real family business scenarios. It is a working forum where they apply their business practices to each case study. The center also conducts “live” case presentations where family business owners are invited to share their own challenges or successes. This is done in a peerto-peer learning environment that provides networking and shared learning experiences.
Past presentations have included Tony Simmons of the McIlhenny family (Tabasco), Jamie Richardson of White Castle, Carol Bernick of Alberto Culver, and Mitchell Kaneff of Arkay Packaging. What our members appreciate about the live case presentations is that they know they are talking to other owners who are in the trenches with them. The program also offers breakout sessions where participants can engage. The greatest value that our members get from forum is not only learning from the experts but learning from each other. They have indicated that it’s like family business therapy.
In addition, they receive annual one-on-one consultations, access to our articles and periodicals in the Freeman School’s Turchin Library, and personal referrals to professionals who can provide support and resources. How many people are on staff? I am the only full-time staff member, but we have great resources through the Lepage Center with Executive Director Rob Lalka and our Freeman faculty. Also, we have a new dean, Paulo Goes, who is very focused on innovation and (has) expressed an interest in family business research. How many people and businesses has the center helped? Over the past 21 years we have serviced over 200 family businesses as members of the center. Through our programming, site visits and consultations we interface with more than 400 individuals of family businesses annually. How does the center help its members? The center provides a structured peer-to-peer environment for family business owners and members to learn how to manage, grow and navigate the unique challenges of their business.
Participants are coached in taking a less emotional approach to decision-making and being more strategic when dealing with sensitive issues such as family dynamics or leadership styles. Why is it specifically important for our region to support family businesses? We do not benefit from the Fortune 500 companies that may have existed a few decades ago. As such, family businesses have been the constant regarding job creation, growing the economy, and providing philanthropic resources for the community. n
WHAT ARE YOU MOST LOOKING FORWARD TO IN THE NEXT YEAR?
Spending more time, in-person, with family and friends, Mardi Gras, and officially celebrating our daughter’s wedding… New Orleans style.
HOBBIES? Gardening
DAILY HABITS? Listening to classical music during my morning drive to the office — it tempers my spirit.
BEST ADVICE EVER RECEIVED?
Spend time sitting by a window. As long as you can see life you’ll want to live life.
PET PEEVE(S)? (Media) depicting people from New Orleans with heavy Cajun accents
BY KEITH TWITCHELL PORTRAITS BY GREG MILES
Devastated by Hurricane Katrina 16 years ago, St. Bernard Parish has since rebounded to become the fastest growing parish in Louisiana.
GROWING ON THE
ON THE RIVER
“I think St. Bernard would really surprise people,” said Cat Demaré, owner and “creative co-conspirator” of Chicory Productions. Demaré’s recently launched venture exemplifies the startups that are helping to generate so much energy and excitement in the parish. At the opposite end of the longevity spectrum is David Clements, owner of Clements Insurance. Clements, whose father founded the company nearly 50 years ago, traces the family’s St. Bernard roots to the 1700s. Yet his sentiments are the same.
“This place was always a hidden gem,” Clements said. “Now we’ve gone through such a transformation, people who moved away see the progress and are coming back.”
Clements’ observation highlights to the starting point for the current revitalization of St. Bernard: the dark, desperate days after Hurricane Katrina. Storm surge, primarily channeled up the now-closed Mississippi River Gulf Outlet — the infamous “Mr. Go” — just about washed the parish away. Some questioned whether the area would ever come back.
Roots in St. Bernard Parish are strong, however, and longtime residents pitched in and started the rebuilding work.
“Our people did a fabulous job of bringing St. Bernard back and bringing it back strong,” said Elizabeth Dauterive, CEO of the St. Bernard Chamber of Commerce, “and it has just kept going from there.”
Parish government played an important role in the comeback via programs such as “Sold on St. Bernard,” which packaged vacant lots for developers, laid down the infrastructure, established design standards and performance requirements, and streamlined the permitting process. Entire new neighborhoods were created.
“Five years later, the parish is really reaping the benefits of this program,” observed McCormack, who added that not only has the program provided the housing stock that has catalyzed the population growth, it has caused property values to increase exponentially, rewarding early purchasers and those pre-Katrina homeowners who held on to their lots. At the same time, housing prices are
still lower than most of the metro area — the average home value in the parish is under $150,000. While former residents continue to return as housing becomes available and economic opportunity increases, McCormack has seen people coming in from the Florida Panhandle and as far away as Michigan and the Northeast. The largest number, though, are from closer to home, particularly New Orleans and Jefferson Parish. What are some of the main attractions downriver? For younger families, the St. Bernard Parish school system’s ranking among the best in the state is a major draw. The cost of living is lower, including those housing prices. Crime is also low. The 16 miles of Mississippi riverfront, as well as coastal frontage, outdoor recreation, wildlife and scenic views are all among the area’s assets, as well as easy access to all that New Orleans and the rest of the region has to offer. “People think this is a far-off place,” said Kerri Callais, managing partner of Callais Ice Service, “but when they come here, they find it’s as easy to get to as Metairie or Slidell.” Callais’ company takes full advantage of what she considers the parish’s prime location, delivering the 200-plus tons of ice it manufactures every day to some st “ BERNARD PARISH IS THE BEST-KEPT SECRET IN THE REGION!” This enthusiastic comment, from Meaghan McCormack, executive director of the St. Bernard Economic Development Foundation, is echoed by businesspeople across the parish and supported by data from the recent U.S. Census and other sources — which suggests that the secret may be starting to get out. 300 customers that range from local groceries and restaurants to locations in Covington, Avondale and Mandeville. “It takes half the time to get to Downtown New Orleans as it does from Jefferson Parish,” echoed Demaré of Chicory Productions. She and her husband took all these factors into consideration when they moved to Arabi three years ago. What they did not anticipate was the COVID-19 pandemic, which cost Demaré her job in the event production field. But she said the couple never considered leaving, and instead combined their talents to open up their virtual events and video production company. While some of her larger clients are in the city or even spread throughout the nation, many are closer to home. “In St. Bernard, we can provide services where they are not as widely
DAVID CLEMENTS, OWNER OF CLEMENTS INSURANCE
available, especially for smaller businesses. Businesses here are more actively looking to work with other St. Bernard businesses.”
From her perspective, several advantages accrue from, as she put it, “being a bigger fish in a smaller pond.
“I can bring my talents here in a way that I couldn’t necessarily do in New Orleans, and I can contribute in other ways. I want to be in a place where I can make a difference.” Demaré has backed this up by being an active Chamber member and serving on several local nonprofit boards. Her point underscores another aspect widely cited as a compelling attraction in the parish.
“It’s a smaller community, so everyone helps everyone else,” noted the Chamber’s Dauterive. “It doesn’t take long to meet everyone.”
“That’s something that has always been a staple here, that people try to use other St. Bernard businesses,” agreed Clements. “I always try to keep my business in St. Bernard.” He added that this common attitude has led to stronger business performance and accountability. “People provide a better level of service because their customers are their neighbors. I can’t imagine going into too many businesses in St. Bernard where I haven’t at least met the owners. There are very few strangers here.”
Few people have a better observation post for the region’s revitalization and sense of community than Jessica Reab, general manager of Brewster’s Restaurant. Another multigenerational family business — founded by Reab’s father 35 years ago — Reab experiences the new and the old on a daily basis.
“There’s such a sense of loyalty to our community,” she said. “People really want to support the local businesses and see us do well.” The newcomers seem to welcome this also, she added. “You meet new people and you get connected to them quickly.”
The majority of the patrons at Brewster’s are locals, augmented by visitors enjoying the outdoor and recreation opportunities. While Reab noted that the restaurant trade inherently requires working with some vendors from farther afield, she added that, “We try to do business locally as often as possible.”
Of course, there are larger companies and industries in St. Bernard as well. According to McCormack, of the Economic Development Foundation, the parish’s traditional major sectors are maritime and energy. Large refineries still dot the landscape, and the Port of St. Bernard is a major player in the Mississippi River shipping industry. The healthcare and construction sectors are also major employers.
That said, “The goal of the foundation has been to diversify, to look at what the jobs of the future will be,” McCormack noted. One example of this is film and video production. Having recently doubled in size, The Ranch Film Studio is now the largest post-production facility in Louisiana. Driven in part by additional incentives offered by the parish government, a growing number of films are shooting there.
“This means the film companies are spending their money in the community, from buying the materials for set construction to hiring local caterers,” said McCormack.
Another example of diversification is the new Aerospace Manufacturing Program being offered at Nunez Community College in Chalmette, which McCormack says includes some NASAaffiliated companies currently working at the Michoud Assembly Facility in eastern New Orleans that are now looking at relocating to St. Bernard.
“Now we’ve gone through such a transformation, people who moved away see the progress and are coming back.” David Clements, owner of Clements Insurance
“A lot of lots are still vacant from Katrina, but there are so many houses going up my mind has been blown. And there is a lot of growth that’s still going to happen.” Jessica Reab, general manager of Brewster’s Restaurant
St. Bernard has weathered the impacts of the recent disasters better than much of the region. To everyone’s considerable relief, the new $14 million floodwall protection systems held up during Hurricane Ida. The Parish may also have come through COVID-19 better than any other in the greater New Orleans area.
“I’m not aware of a single business that shut down solely because of COVID,” said McCormack. “Maybe because we have more space here, we had lower case numbers. We have fewer large office complexes and co-working spaces, and business owners really supported each other.”
Brewster’s Restaurant was one example of locals supporting locals.
“As soon as things shut down, we went straight to takeout only,” Reab recalled. “Then we went totally to curbside pickup. And once we figured out how that worked, we talked to some other restaurants to let them know they could do the same thing.”
The restaurant’s owners used the downtime to completely renovate its interior, something they had wanted to do for a while. “For us,” said Reab, “it was a little bit of a blessing in disguise.”
According to McCormack, it also helped that the economy in St. Bernard is largely founded on businesses considered to be essential, like refineries and shipping. “Our businesses needed to be able to continue operating to keep the country functioning.”
Dauterive noted what she thought was another important factor that helped businesses get through the pandemic: timely communication from parish government.
“The parish officials kept us informed,” she reported. “Knowing what was going on helped businesses figure out new ways to generate revenue streams.”
In addition to managing her family’s business, Callais has been a councilmember-at-large for six years, and she emphasized that St. Bernard Parish government works to create a business-friendly environment.
“We are ready and willing to help any business get started,” she said. “We help with the paperwork, the permits, finding a business location. We are hungry for new businesses as a parish government.”
One possible new economic engine on the horizon is the Port of New Orleans’ proposed container terminal, a potential $1.5 billion investment in the parish that would be built in Violet. The project is still in its early stages, including feasibility, environmental impact and other studies, and concerns remain about the potential implications for residential quality of life; but jobs, spending and infrastructure improvements could all be of considerable benefit to St. Bernard. Although the parish has its own port, the facility does not handle containers, so competition would not be a factor.
Looking back to where St. Bernard Parish was in the immediate aftermath of Hurricane Katrina, the area’s recovery and revitalization is nothing short of remarkable. The destruction was horrific, easily on a par with that in New Orleans itself; but unlike the city, little national attention — let alone financial and volunteer resources — was focused on the area.
The rebuilding process is not complete. “A lot of lots are still vacant from Katrina,” Reab pointed out, “but there are so many houses going up, my mind has been blown. And there is a lot of growth that’s still going to happen.”
“Once the wave started, we’ve been catching momentum more and more,” concurred Clements. “More stores are opening up, more restaurants. Businesses are feeding off the population growth, and people are coming in because of the businesses. We are in a really good upward spiral right now, and I really see it continuing to move forward.”
The parish’s tangible growth is mirrored by shifting perceptions of St. Bernard by both residents and outsiders.
“I think most people saw it as a suburb of New Orleans, never saw it standing on its own,” noted Callais, adding that the pace of change has particularly accelerated in the past five to six years. “Now people are realizing it is a wonderful, affordable place to live and [can] still be in the middle of everything.”
“I’m excited about what’s to come,” enthused McCormack. “Things are moving downriver!” n
ST. BERNARD BY THE NUMBERS
St. Bernard is the fastest-growing parish in Louisiana per the 2020 Census, with population increasing 21% from the previous Census to 48,172.
7%
additional population growth is projected by 2025
$44,700
Median household income, with 6.6% projected growth by 2025
$2,714,041,000
Annual parish GDP, representing growth of 42% between 2016 and 2019
223
Total number of privately-owned businesses
72,501
cars enter the parish on an average day
6 miles
of intercoastal waterway access support the port and shipping industry
From The Lens
SOUTHEAST LOUISIANA BUSINESS IN FULL COLOR
