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How to Conduct an Effective Performance Review

Posted: 18 May 2019 09:06 AM PDT

Giving a performance review can be an uncomfortable situation for both the employer and the employee. The good news is that as a business owner or manager, there are several tips and tricks you can adopt to make the process much easier, even if you have to deliver negative feedback to an employee.

1. Don't deliver a monologue

The best way to conduct a performance review is to make it conversational, as opposed to a lecture, according to Sherry Ailsworth, partner and executive recruiter at Chameleon Collective.

"It's a two-sided opportunity to explore an employee's performance and allow them to take control and give input on how to improve moving forward," said Ailsworth. "Even so, leaders are ultimately in control of the direction of the performance review. It's their responsibility to stay on target, cover each point, ask for feedback and keep the employee focused for a productive meeting."

Ailsworth recommended that before the performance review even occurs, send the agenda to the employee and ask him or her to provide feedback. By doing so, you offer them co-ownership of the conversation.

"You also signal there will be a balance of some bright spots and some room for improvement, but you expect that you will both learn something from the dialogue," said Ailsworth.

2. Avoid starting with a negative, but don't be falsely positive

"Starting with 'suggestions for improving how we work together' sounds so much more constructive than saying 'let's talk about the problems I have with you,'" said Ailsworth.

Consider these examples:

  • "I appreciate how forward-thinking you are for our customers, like the time when you reached out to Mr. Abbott at ABC Construction to congratulate him on the new building contract he closed. So thoughtful!"
  • "Your attention to detail is incredibly helpful; your succinct footnotes on the February sales report saved an hour of explanation to the CFO. I appreciated your efforts."

Providing that extra detail accomplishes two things. One, it grounds your feedback in a real situation and validates the employee's behavior as valuable to you, as well as the company. Second, it signals to the employee that you pay attention to their work, according to Ailsworth.

"Managers should be direct, positive without flattery and critical without sounding harsh. When employees hear only the positives, they may be misguided to think they are performing better than expectations, which may lead to expected merit increases or promotions," said Wendy DeCampos, senior employee relations specialist at for the city of West Palm Beach, Florida.

When there is a mismatch in perception, added DeCampos, it can lead to disappointment and discouragement. Robert Charming, head of people at Kustomer, agreed: "The tone should be appropriate for the level of performance. Yes, it may be a hard conversation. Yes, there may be a risk of losing that person if they don't hear what they want. It's better for everyone involved if the tone is appropriate for the feedback that needs to be delivered."

3. Avoid assumptions or exaggerations

Carefully choose your words when critiquing an employee's performance or behavior. If you use extreme or emotional language, there's a chance the employee will immediately become defensive, cautioned Erik Mott, a blogger, consultant and intrapreneur at Creatorbase. This hinders the performance review.

Peggy Myers, human resources director at Levatas, agreed: "As a manager, there is no reason to be defensive or emotional during the review. You have a thorough document with examples of performance. The best approach is to prepare for the discussion, have your examples of performance, celebrate the successes and focus on areas for development."

Ailsworth added that supplementing your criticism with hard data lessens the likelihood that you will lose control of the conversation or, worse, that there will be an emotional display. The words "always" and "never," which are examples of extreme words, should also be avoided.

"For example, if one of my employees is not satisfying their daily call requirements, it would be inappropriate to say, 'You never make your daily calls.' I could instead say, 'You consistently fail to meet your daily call requirements,'" said Mavis Norwich, senior manager of sales development, at business text messaging platform Zipwhip.

4. Stay on topic

It's easy for conversations to veer in a different direction than what you had planned. In a performance review, it is crucial that the conversation stay in line with what needs to get accomplished.

"Instead of asking 'Why are you so upset?' invite them to open up by asking 'We seem to have hit a disconnect. It might be because I misunderstood you. Will you talk to me about that?'" said Ailsworth. "The first question forces the employee to explain their emotional upset, which creates anxiety. The second question forces you to own the problem and provides the employee with a good reason to open up. If you're listening, you will both learn something important in the answer."

Preparing an agenda and sharing it before the meeting with the employee can really help, added Charming.

"Set expectations when the meeting starts that you want to cover the items that were shared in the agenda. If a tangent happens, gently call it out as a topic that's worth discussion at a later time and then return the conversation to the agenda at hand. It's on the manager to drive the conversation forward to the outcome they're looking to produce," said Charming.

It could be helpful to let the employee know that if they have off-topic items, they will be addressed at the end of the review if there is time, or they can schedule a separate conversation.

"Personally, I prefer to do it at a separate time. This is the time that's been set aside specifically for discussing the employee's performance," said Myers.

5. Avoid closed and compound questions

It is important to remember that performance reviews are opportunities to guide your direct reports. DeCampos and Charming suggested asking the following open-ended questions, which will yield the best responses from your employee:

  • How do you feel about what was discussed; in what ways can it be turned into an action plan for next month/quarter/year?
  • What are your thoughts regarding your career path?
  • What are your three favorite functions about your job?
  • What are you passionate about?
  • How do you think you're technically performing against your role?
  • What's working, what isn't?
  • Do you think you're where you need to be technically?

"Questions can drive a conversation. Open-ended questions can be better for self-reflection and drawing out how someone is thinking," said Charming. Closed-ended questions can help the reviewer more closely control a conversation. "Varying these questions, and how they're framed, is a skill, but it can be useful for driving a conversation forward."

Myers recognizes that open-ended questions during a review discussion support an open conversation. "Share your feedback on a topic and ask the employee, 'How do you feel you performed in this area?'" she said. "Also, be curious. You may learn new skills or interests about that employee that could shape the future with the organization."

6. Don't shy away from hard feedback and opportunities to improve

"Performance reviews are an opportunity to sit down with a direct report and have a candid, empathetic discussion about what's going well (the pluses) and areas for improvement (the deltas)," said Charming.

Charming added that it's much easier to give positive feedback and highlight things that are going well.

"Everyone loves to hear how great they are. It's much harder, and can even be scary, to deliver less-than-positive news. However, when you shy away from hard feedback, you're doing the individual a disservice by not emphasizing an area they can continue to grow in, which not only hinders them, but hinders the broader organization," Charming said.

Tips for giving negative feedback

1. Avoid surprises

There shouldn't be any surprises in performance reviews, said Myers, especially when it comes to negative feedback. "The performance review should be an interactive discussion," she said. "Bringing up areas for improvement or performance issues for the first time isn't fair to the employee as it is then memorialized in their employment record before they've had a chance to address the issues and improve. It's also demotivating to the employee to work hard all year only to be surprised by negative feedback."

2. Deliver it in private

It's also a good idea to tie the criticism or negative feedback to some kind of performance expectation and avoid personalizing the discussion.

"For example, instead of telling an employee they get sloppy with their data entry after lunch, explain you noticed their error rate for the last two hours of the day is 40% higher than expectations. It's a lot easier to have a positive discussion when discussing expectations versus making judgments," said Myers.

3. Deliver criticism constructively and with empathy

No one likes being criticized just for the sake of being criticized, and on the flip side, no one enjoys giving criticism just for the sake of doing it. It doesn't help a situation in any way.

"A critique with clear action items on how to best move forward can make a tremendous difference in the outcome of a conversation," said Charming. "Before providing feedback, give thought to how it will be received. If possible, tie the critique to the person's own goals and strengths. This will lend value to the conversation, aligning the feedback to how they want to grow."

4. Balance out the negative with the positive

Once you've delivered the bad news to employees about their performance, point out their good qualities. "Regardless of an employee's performance," said Ailsworth, "leaders should be able to [highlight] the positive qualities or contributions that are worth addressing."

Knowing what to say – and what not to say – during a performance review can result in a fruitful discussion with the employee, which could lead to a meaningful change in an employee's performance or behavior going forward.

"Performance reviews are not just tools to uncover opportunities," said Ailsworth. "[They] also reveal the value the employee brings [to the company] … the review should reflect both sides."

3 Tips for Picking the Right Office Space

Posted: 18 May 2019 09:00 AM PDT

Whether you're growing, moving to a better location or nearing the end of your lease, new office spaces are a natural part of the small business life cycle. While choosing a new location may not be difficult, finding the right one for your business and team can be. There are several important things to think about before choosing a space for your business, and your employees should be at the top of that list.

"When looking for a new office, the priority is how your team will feel in the new space," said Joe Lawlor, co-founder of Digital Dynasty.

How can you consider your team's attitude toward a new potential space? It's good to start with some common questions and blend your business's needs with the needs of your team. For instance, budget should dictate what office you move into, but location and proximity to mass transit or parking should be decisions made with your employees in mind.

Sandi Webster, managing director of C2G Partners, proposed some good questions to keep in mind when looking for new spaces:

  • Do your employees come in every day, or are they working from home?
  • What's the public transit or parking situation like?
  • Does this office have space for your company to grow, or is it just enough space for right now?
  • Is there a realtor involved? What is their fee?

These are some questions that may not be immediately on your mind when looking but are very important – especially in the age of remote work, when many companies have liberal policies on when employees need to be in the office.

Looking for the right office space for your company boils down to three important needs: location, size and office feel.

Location

The driving force behind your office search is the need for a location that's convenient for your employees, clients and customers, and business reputation – these should be the pillars of your new space. By finding a space that's convenient for your employees, you can make coming to work easy. It also means that you won't have to build commute costs into compensation considerations.

"A central location saves significantly on both gas/vehicle-related costs as well as payroll costs, since we don't have to pay employees to drive as far in company vehicles," said Andrew Rohr, president of MSS Cleaning.

Your location should also be close enough to your clients and customers that you can get good foot traffic if you're a retail location and to make you easy to get to if you work with many local clients.

"A company should look hard at if they're creating an office to impress their clients or to attract and retain employees," said Walt Batansky, CFO of Avocat Group. 

The other important factor in location is your business's reputation. By choosing the right part of town, you can communicate your business's story or set employment trends. If you're running an up-and-coming digital marketing agency, for example, a trendy neighborhood can also help with talent acquisition.

"We selected an up-and-coming neighborhood – now one of the hottest in Chicago – which helped us recruit rising creative talent," said Kate Weidner, co-founder of digital marketing agency SRW. "Where you plant your roots says a lot about who you are, and we want to be seen as trendsetters."

Company size

The next most important factor in deciding on a new location is the size of your company and how many employees will be present on a regular basis. With the rise of remote work, it's possible to have an office that's actually smaller than your total team, but this isn't ideal if you're poised for growth within the next few years.

Weidner said one of the reasons she decided to move into a WeWork coworking space was the room for company growth.

"We wanted to be able to scale up as soon as we added a new client or capability," she said. "It also helped us sleep at night to know we could scale down easily; luckily, we haven't needed to."

This is a major advantage to joining a coworking space. While major companies like WeWork and Regus drive coworking trends, there are several smaller coworking spaces throughout the U.S. that can accommodate a small business's needs.

Office environment

The third important factor, which ties into location, is your new office's environment. Consider how it compares to your old office and whether it will reflect the company culture you want to create. People spend a lot of time at work, so it's important to build an office culture that breeds positivity. That starts with the physical office space.

"Choosing a rising trendy neighborhood has helped shape our image to our clients and our culture for our team," Weidner said. "An office environment that breeds creativity is also essential in our industry, since most people in advertising feel pretty stifled by cubicles."

Like location, your office environment and feel will affect how your customers and clients see your company.

As you consider new office spaces, don't be afraid to poll your employees on what they think. Keep in mind that moving to a new office space is an opportunity to further build out your businesses culture. By choosing the right one, you can set your business up for success.

New Microsoft Partnership Will Train 15,000 Workers in AI by 2022

Posted: 17 May 2019 04:00 PM PDT

  • New Microsoft partnership with General Assembly will "upskill and reskill" 15,000 workers for AI-related jobs by 2022.
  • Partnership will establish the AI Standards Board to create industry-recognized credentials for AI skills and design a career framework.
  • These two companies will also create the AI Talent Network to help businesses find qualified AI workers.

As artificial intelligence gains more prominence in the workplace and jobs are redefined as a result, a new partnership between two major companies that was announced earlier today could help create a set of industry-recognized credentials and educate thousands of workers.

Earlier today, Microsoft and General Assembly (GA) announced that they are working together to "close skills gaps in the growing fields of artificial intelligence, cloud and data engineering, machine learning, data science and more."

Through this partnership, officials said they plan to establish a new set of credentials for AI skills, as well as "upskill and reskill" 15,000 workers by 2022, effectively creating a new AI-related global workforce.

Training will help workers thrive in AI-disrupted economy

According to the World Economic Forum, "133 million new roles may emerge that are more adapted to the new division of labor between humans, machines and algorithms" by 2022. General Assembly CEO and co-founder Jake Schwartz called that upcoming shift the "greatest disruption to our global economy since industrialization."

"Microsoft is an amazing partner as we develop solutions to empower companies and workers to meet that disruption head-on," said Schwartz. "At its core, GA has always been laser focused on connecting what companies need to the skills that workers obtain, and we are excited to team up with Microsoft to tackle the AI skills gap."

The new partnership will conservatively start with 2,000 job transitions in the first year. Over the following three years, the remaining 13,000 workers will be transitioned to their newer, more AI-focused roles.

"As a technology company committed to driving innovation, we have a responsibility to help workers access the AI training they need to ensure they thrive in the workplace of today and tomorrow," said Jean-Philippe Courtois, executive vice president and president of Global Sales, Marketing and Operations at Microsoft.

AI Standards Board will set career certification standards for AI workforce

Once the program starts, officials said it will focus on "setting the standards for artificial intelligence skills, developing scalable AI training solutions for companies, and creating a sustainable talent pool of workers with AI skills."

Creating standards for AI skills will start out with Microsoft serving as the founding member of GA's AI Standards Board. Other companies are expected to join the board, which will define "standards, develop assessments, design a career framework, and build an industry-recognized credential for AI skills" over the following six months.

Officials at Microsoft said they also anticipate that the collaboration with GA will help businesses understand the concepts surrounding AI and its application in the workspace. Though Microsoft's cloud computing suite Azure is used in many sectors, the tech giant said most workers are not able to fully realize the software's potential. This new partnership, they said, "will focus on accelerating the workforce training needs of Microsoft's customers so that more teams have the foundational skills needed to work with AI.

To even further help businesses meet their AI needs, the two companies will establish an "AI Talent Network" to provide a pool of candidates for hire, as well as on a per-project basis. This facet of the partnership will heavily rely on GA's network of 22 campuses, and on staffing agency Adecco, to create a job pool for relevant workers.

5 Ways To Increase Sales with Business Text Messages

Posted: 17 May 2019 10:00 AM PDT

So how do people prefer to connect with others now? By text messaging of course! Text messaging allows people to communicate with others when they have time. They can also respond in situations where a phone call might not be appropriate. For this reason, it's a good idea to utilize business texting to reach out to customers and potential customers.

Here are five ways you can use business texting to increase your sales.

1. Engage with new leads via text messages

One of the main aspects of running a business is getting people to buy your products or service. However, people need to know you exist before you can sell them something. When potential customers show even a small amount of interest in your company, ask them to sign up for text messages from you Then, you can use SMS marketing to keep them informed about promotions, events and other important things going on with your company.

Don't forget to put all of your contact information in your text message to make it easy for customers to reach you with additional questions or information on buying. Then, if they are interested, they can call you.

2. Re-engage with cold-leads by sending a simple text

Some people need to be reminded that they were interested in your company at one time or another. A text allows you to do this quickly and easily. Two-way business texting can even help you provide the customer with the information they need to know before moving forward with your company.

Even better, your potential clients will not feel overly pressured at that very moment. If they are busy at work or spending time with family, they can reach back to you when it's more convenient for them. When a customer can call at their convenience, they are not only showing direct interest, but they also have time to talk.

Try sending a simple text to your cold leads that says something like, "Are you still interested in [your product or service]?" Then watch the replies fly in.

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3. Reduce no-shows for appointments, meetings or webinars using SMS reminders

When someone misses an appointment with your company, you miss out on revenue. However, we all have busy lives and it can be easy to forget things. Help your clients remember they have an appointment by sending them a reminder text the day of, or the day before, an event.

A text is more efficient than calling people with a reminder because you don't need to spend valuable time at the office making phone calls. This allows your employees to focus on other important tasks.

4. Send last-minute reminders via SMS before promotions end

People don't like to miss out on a good deal. Help your customers avoid missing out on potential savings by sending them text messages to let them know when certain promotions are ending. It's a good idea to send a message a day or two before the promotion ends and then another on the last day. This information can encourage them to take advantage of the promotion.

5. Qualify leads over SMS before calling

Many times, employees waste time with a customer who doesn't really need or want the product or service you offer simply because they don't qualify for it. Send a text to the potential customer with information that will help them decide if they are a good candidate for your services or not. If you use two-way business texting, you can allow your customers to make certain selections to get more information 

While it's extremely effective to send out reminders and messages to your customers, you want to make sure your texts include information that your customer will value or find useful. If you send messages that your customers don't want, they are more likely to opt out of receiving texts from your business. For the same reason, you don't want to send too many messages. No one wants to be bombarded with advertising.

How to Handle a PR Crisis: What Boeing Should Have Done

Posted: 17 May 2019 10:00 AM PDT

  • After a crisis occurs, get ahead of the narrative by addressing it right away.
  • Be sure to convey empathy for any problems caused. Be sympathetic to anyone emotionally or physically hurt, but consult your legal team before admitting guilt.
  • Don't forget to use social media as a signal boost for your business's post-crisis message.

Financial, existential and reputational crises can happen to any business. Planning for the worst-case scenario can save a lot of headaches, regardless of how big or small your company may be.

Even though the best course of action is to avoid crisis and controversy altogether, sometimes it's completely unavoidable. How a business handles the fallout and responds to a disaster can mean the difference between a blip on the radar or a full-blown PR nightmare. When things go sideways, it's imperative that you have a crisis management plan in place so your reputation and livelihood aren't irrevocably damaged.

While there are plenty of examples of major companies going through tough times, the ongoing crisis at Boeing and its 737 Max aircraft is the most high-profile and damaging situation making headlines today. Below are three crisis management tips that small businesses can learn from Boeing's mistakes.

Boeing's crisis and PR missteps

Few crises have hit a business as hard in recent years as the one that's left Boeing reeling over the last few weeks. In the months since two of Boeing's 737 Max aircraft crashed, killing more than 300 people, the situation for the aircraft manufacturer has gone from bad to worse. Nearly the entire fleet has been grounded due to a faulty stabilization system, which is suspected to have caused the crashes. Airlines have requested compensation for the stoppage, and orders for the aircraft have ground to a halt.

With massive losses expected in the company's foreseeable future, experts are pointing to at least one particularly damaging aspect of the crisis that Boeing spectacularly failed to navigate: its public response.

While Boeing's woes are uniquely their own, it's still important to remember that any business can find itself at the center of a major crisis. When problems arise and your business must respond, here are some pointers to help you navigate difficult times without damaging your company's reputation.

1. Respond quickly with transparency

When businesses are facing a potentially damaging situation, the first thing that needs to happen is to address the situation as quickly and clearly as possible. It may be uncomfortable, but according to James Cassel, founder and chairman of Cassel Salpeter & Co., it's better to just get out in front of it.

"When you have a problem, you need to acknowledge it right away and take active measures to deal with it," he said. "Too many companies fail to understand that stalling or obfuscating just increases the risk for your business."

Being the first out of the gate with a response is just half the solution. United Capital Source CEO and Founder Jared Weitz urged companies to be more transparent to "get ahead of the story."

"Rather than obfuscate and allow external perspectives to shape the narrative, step into the light and be transparent from the start," Weitz said.

In the immediate aftermath of the crashes and the 737 Max's grounding, Boeing was harshly criticized for how it handled the crisis. Slow response times and an apology that some considered insincere compounded the PR nightmare.

By the time Boeing CEO Dennis Muilenburg released an apology letter and accompanying video on April 4, nearly a month had passed since the second crash. While it wasn't the company's first attempt at addressing the situation, it was considered by critics as a case of "too little, too late."

Cassel said the fact that it took Muilenburg so long to publicly apologize was a bad look since "it takes years to build up a brand, but only a few minutes to destroy it."

2. Be empathetic, but seek legal advice before admitting guilt

Regardless of who's impacted by a company crisis, it's important that any apology is handled carefully. Company officials may want to avoid admitting guilt, but failing to address the issue at all can make it seem like those at the top don't care.

In the case of Boeing's current woes, it took the company nearly a week before they released a statement that expressed their concern for passengers' safety. Coupled with the news that Boeing lobbied President Donald Trump to not ground the aircraft, David E. Johnson, CEO of Strategic Vision PR Group said public perception around the manufacturer soured.

"Boeing's handling of the crisis was a classic study of what not to do. The key to successfully handling a crisis is being proactive and taking responsibility," he said. "Boeing failed in this and allowed others to set the narrative, ...[which] conveyed the impression that Boeing was more concerned about profits than people's safety."

While most experts agree that addressing the event head-on and being empathetic to the victims is the best course of action, that may not always be the best legal move. Tina Willis, a Florida-based injury and accident attorney, said careful planning between a company's public relations and legal teams can go a long way in addressing the public's concerns while mitigating potential litigation.

"Any media presentation should be reviewed by the business's lawyer before release. Otherwise, if a business admits fault, or even tries to explain what happened, you can bet those statements will become valuable evidence in a future accident or death lawsuit," she said.

In the case of Boeing's 737 Max where they recently admitted they knew of the faulty sensors prior to the crashes, Willis said potential lawsuits could come with massive penalties as families of the victims seek restitution. Knowing that, it would explain why companies often struggle with empathy versus liability.

"The bottom line is, from a liability standpoint, Boeing faced an extremely difficult dilemma," said Willis. "However, when combining PR goals with avoiding liability goals, the best approach would have been to have the PR people develop a game plan with the company's lawyers. If having the statement reviewed by lawyers is not possible, the best legal approach for any company would be to stay silent and speak only to their lawyers, then have their lawyers speak to the press."

3. Have a social media strategy as part of your crisis management plan

These days, nothing delivers your message to the public as fast as social media. As such, businesses in crisis mode should include both a social and traditional media response in their disaster recovery plan. Since social media usually sets the narrative and has quickly become a major player in the information space, he said ignoring it would be a major detriment.

According to a 2018 study conducted by the Pew Research Center, approximately 1 in 5 adults said they get their news from social media. Conversely, the percentage of respondents who said they got their news from television went from 57% to 49%, while those who cited print journalism as their main source of news dropped from 20% to 16% from 2016 to 2018.

While the hardest-hitting headlines surrounding Boeing's 737 Max were found in traditional media, the story took on a life of its own on social media. While it may be tempting to ignore the likes of Twitter and Facebook when managing your own crisis, it's important to recognize how important those platforms are in the news world.

"With the crash of the 737 Max in Ethiopia, the company was facing a human tragedy, yet did not express empathy and sympathy in addressing the issue," said Johnson. "[Boeing] ignored social media critics who largely set the narrative that the traditional media [picked up on]."
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