Carrots and Sticks: 5 Insights From Employee Engagement Expert Chester Elton
Chester Elton holding a copy of The Carrot Principle

Carrots and Sticks: 5 Insights From Employee Engagement Expert Chester Elton

Catching up with Chester at the latest Marshal Goldsmith Top 100 Coaches meetup – I thought our conversation was so fascinating that I just had to share what Chester's views were on some of the questions I asked him… here’s an excerpt

  1. What is the best management team you've ever worked with and why?

That would probably be our friends at Danaher. Since 1986, only Microsoft and Oracle have outpaced Danaher in return to shareholders. So, the lesser known Danaher is in rarified company. We got to know this terrific company a few years ago when CEO Tom Joyce asked us to kick off an employee engagement initiative with a speech to his senior leaders. Danaher’s ambitious, hard-charging people have almost unbounded career opportunities to move between teams and learn and grow. CEO Joyce himself started out as a marketing project manager in Danaher’s tools group in 1989. It’s a culture built on transparency, incredible efficiency, and continuous improvement—and they live those principles every day in every decision.

 2. What do you think is different about managing millennials? 

We actually get asked to speak a lot on this subject. We have a large research database and we have found a handful of stark differences in what motivates many Millennials in comparison to their older colleagues—some of which bucks conventional leadership wisdom. Perhaps most striking is the finding that while autonomy is one of the stronger motivators for Boomers and Gen X workers, it ranks near the bottom for Millennials. Another striking data point with Millennials is that recognition from their bosses and coworkers matters much more than it does to older workers. While these differences can cause considerable friction between young employees and their managers and older colleagues, in fact, they can provide a basis for creating stronger bonds between the generations and to their organization.

3. If you could only recommend three business books, what would they be?

Encouraging the Heart by Kouzes & Posner

All In by Gostick & Elton

Tipping Point by Malcolm Gladwell

4. How can we make sure our work teams keep the customer in mind?

One of the most effective ways of creating rigorous customer focus is to ensure there are channels for all employees to report upward issues that they are seeing on the front lines. In fact, the most profitable cultures we have studied not only listen for customer feedback but can be described as active in soliciting both the good and the bad—and consider seriously even some comments or criticisms that may seem off-the-wall at the time. As we’re sure you have witnessed, in most companies negative customer feedback is hidden from view. And feedback that could lead to new directions all too often is ignored. Employees who do bring complaints or new customer leanings to the attention of senior leadership are often viewed with suspicion or, our favorite, blamed for creating the problems themselves.

5. What’s the best way to build trust (in a team or in a buying decision)?

Our work focuses most on teams, so we’ll comment on that aspect. The best teams we’ve studied help employees feel psychologically safe with one another, which means they feel comfortable being vulnerable in the group and taking risks such as sharing an idea that might be perceived as wacky elsewhere. Also vital in building trust is open communication and allowing employees a voice—especially in decisions that affect their work lives.

Thanks so much for reading what Chester had to share. Danaher is a great company and it looks like we both recommended Malcolm Gladwell’s insightful Tipping Point. If you’re interested in learning more from Chester follow him here. As always, I’ll be delighted to share my thoughts in my next newsletter.

Fran McCully

On-Demand CFO & Cash Flow Architect | Guiding Small Businesses to Financial Clarity | Specializing in HVAC Financial Management

6y

Excellent book on employee engagement!

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Jonathan Jacobs

Equity-focused marketer II Builder of agencies, brands, and thought leaders II Men's mental health advocate

6y

Great conversation here. Video next time!

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remember the man on the donkey with, yes a carrot hanging from a stick

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Weston Gardner

Owner at Other Half Marketing

6y

Great stuff, as always.

Chester Elton

I help extraordinary leaders transform corporate culture | 500+ leaders coached | Keynote Speaker | For business inquiries, christy@thecultureworks.com

6y

Thank you for this wonderful interview Martin. You are a master!

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