PDF Summary:When They Win, You Win, by Russ Laraway

In When They Win, You Win, employee experience expert Russ Laraway explains that employee engagement in the workforce is at an all-time low, but it’s not the employees who are at fault; it’s their managers. Poorly trained, ineffective managers are everywhere, and they’re costing companies billions of dollars every year. However, Laraway says he has the solution: By developing a few key leadership skills, you can greatly improve your team’s morale and performance. Laraway also offers tools to gauge your effectiveness as a manager.

This guide begins by examining Laraway’s belief that bad management is everywhere and is causing enormous harm to employees and companies alike. We then share his ideas for how managers can succeed in three key areas: goals, coaching, and career development. Our commentary discusses the impacts of employee engagement (or disengagement), digs deeper into how and why Laraway’s ideas might help you become a better manager, and provides additional actionable advice.

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For example, Wizards of the Coast (the company behind Dungeons & Dragons) tried to update its licensing agreements in a way that would be more profitable for itself. In doing so, it faced enormous backlash and boycotts; people accused the company of chasing profits for shareholders and executives and losing sight of its mission to “inspire a lifetime love of games.” In other words, the “why” behind the license updates didn’t serve the company’s goals—if asked, the employees responsible for making those updates might have been able to point out that they weren’t likely to inspire a love of gaming in customers.

Tier 3: Long-Term, Multiyear Goals

The third tier is what Laraway calls the company’s vision—the specific thing it’s trying to achieve. This is a major undertaking, often lasting for multiple years and requiring the entire company to work together. There might not be an obvious connection between an average employee’s day-to-day tasks and a company’s long-term goals—if that’s the case, then you should explain to your workers how and why their work is crucial in meeting those goals. In other words, explain to your employees exactly what you need them to do to support these long-term goals.

(Shortform note: Many employees aren’t directly involved in meeting tier 3 and tier 4 goals, and therefore it might not seem important to explain what those goals are or how their work helps to reach them. However, in The Fifth Discipline, Peter Senge provides two reasons why it’s crucial for every employee to understand the company’s long-term, large-scale goals, as Laraway suggests. First, understanding the company’s goals will help them to set their personal goals accordingly. Second, an inspirational goal will motivate employees to do their best—in other words, it will boost their engagement.)

For example, The Ocean Cleanup is a nonprofit organization that aims to remove plastic pollution from the world’s oceans. One of the company’s multiyear goals or visions is to implement various plastic capture technologies in 1,000 rivers around the world. An employee whose job is, say, writing and sending newsletters to report on The Ocean Cleanup’s progress, might not see a direct connection between that task and the goal of implementing plastic capture technology. However, an effective manager could explain that regular newsletters are an important part of public relations, and are therefore crucial for getting donations so the company can keep removing plastic pollution.

(Shortform note: The way Laraway defines vision and mission (which we’ll get to shortly) is actually the opposite of how those words are usually used. Generally speaking, a company’s mission is what it’s trying to achieve right now, while its vision is the ultimate goal that company hopes to achieve sometime in the future.)

Tier 4: The Company’s Ultimate Aspiration

Finally, the highest tier of goals is the company’s ultimate aspiration, which Laraway calls its purpose or mission—in other words, the reason the company exists in the first place. Ideally, the company’s mission statement spells out this goal so every employee knows what they’re ultimately working toward.

This is a goal that’s likely to take many years to reach, possibly decades. Continuing the previous example, The Ocean Cleanup’s ultimate aspiration is to remove 90% of plastic from the world’s oceans. The employee writing newsletters should understand that their work, though not directly related to removing plastic from the oceans, still supports the company’s ultimate aspiration.

Tip: Set a Big, Hairy, Audacious Goal

A company’s ultimate aspiration will often be what the authors of Built to Last describe as a Big, Hairy, Audacious Goal (BHAG). They add that, when setting such a goal, there are three elements to consider:

1. Specificity. Your BHAG should be specific and concrete. In other words, there must be a way to know when you’ve reached your goal. For example, “increase sales” is not a specific goal, but “increase sales by 400%” is.

2. Audacity. A BHAG isn’t easily achieved, and it might even seem impossible. This is important because audacious goals take you out of your comfort zone; they push you to learn, improve your skills, and take risks that you might not normally take. For example, if you run a local grocery store, your audacious goal might be to grow into a nationally recognized supermarket chain—that will lead you to make more ambitious business decisions than if your only goal was to run that one store.

3. Alignment. Your BHAG must align with your company’s core values to motivate employees and keep your customers happy. For example, if your company values sustainability and environmentalism, but its ultimate goal is simply to increase profits, that goal might drive business leaders to pursue cheaper manufacturing options that damage the environment.

Goals: Measuring Your Effectiveness

To see how well you’re doing at setting clear and reasonable goals as a manager, Laraway suggests sending an anonymous survey to your team. Ask your team members to rate you in the following goals-related areas:

(Shortform note: Some experts argue that despite the rapid growth of employee monitoring and data analysis tools, surveys remain one of the simplest and most effective ways to measure employee engagement. Surveys have other benefits as well: They give employees a chance to share their thoughts and feel like someone’s listening, and the questions you ask may prompt employees to think about their own behavior and performance. In other words, surveys don’t just measure engagement, they can actually help increase it.)

1) Communication. For example, ask: How clearly does your manager communicate with you? How well do you know what’s expected of you, and when it’s expected? How well does your manager explain changes in the company—what’s changing, why it’s changing, and how those changes will impact your job? How well do you understand how your work supports the company’s long-term or large-scale goals?

(Shortform note: Laraway gives clear and specific examples of how you can talk to your team, but remember that communication is a two-way street; make sure your workers know that they can also talk to you when needed. One simple way to do this is to have a fixed time each day or each week when you leave your office door open; let your team members know they’re welcome to stop by during that time for anything they need to talk about.)

2) Collaboration. For example, ask these questions: How closely does your manager work with you when setting individual and team goals? How well does your manager help you prioritize your tasks so you can achieve those goals?

(Shortform note: Although collaboration—helping your employees to set and achieve their goals—is a key part of management, it’s important not to come across as overbearing or intimidating. Make it clear that your aim is collaboration, not control or punishment. In other words, let your employees know that you’re only there to help. This is important because of the power dynamic between employees and their manager; it’s often nerve-wracking when “the boss” gets directly involved, because it creates the feeling that someone made a serious mistake and is about to be punished, or that you don’t trust your team to accomplish their goals.)

Management Focus #2: Coaching

Laraway says that setting clear goals is only the first part of being an effective manager—you also need to coach your workers on how to reach those goals. Not only does effective coaching make your employees into better workers, but it also helps build bonds of trust and mutual support between you and your team. Those bonds, in turn, make your employees feel more comfortable and happier at work; in other words, they become more engaged.

In this section, we’ll review the two aspects of coaching that Laraway discusses: encouraging what’s working well and fixing what’s not working well. We’ll then go over Laraway’s suggestions for how to measure your effectiveness as a coach.

Encourage What’s Working

Many people think that coaching employees means correcting their mistakes, but it’s just as important to provide positive reinforcement for the things your employees are doing well. Laraway says that the majority of your coaching should be encouragement and praise. People like to hear when they’re doing well, so positive feedback factors heavily into employee engagement and retention.

(Shortform note: Positive feedback is good for more than just employee morale. Some leadership experts have noted that, unless there’s a serious problem that needs to be fixed immediately, positive feedback actually drives performance improvement more effectively than negative feedback. In other words, identifying someone’s strengths and developing them usually leads to better results and engagement than trying to fix their weaknesses. This finding supports Laraway’s point that most of the feedback you give should be praise, not criticism.)

Furthermore, your employees might not even realize which parts of their workflow are going particularly well. A good manager will explicitly tell workers what they’re doing well, encourage them to keep doing those things, and explain why those parts of their workflow are so effective.

(Shortform note: Laraway emphasizes the importance of positive feedback, but he doesn’t explore in depth how to provide it. To give effective feedback, make it specific, immediate, and (if possible), public. As Laraway notes, you want your employees to understand what they’re doing well; that’s why it’s important to be specific, and to praise your employees for their achievements as quickly as possible to create a stronger mental connection between their actions and your feedback. Giving positive feedback publicly—for example, at a meeting or in a staff-wide email—makes the feedback feel even more rewarding, as the employee will then get further praise and congratulations from colleagues.)

Fix What’s Wrong

Another important part of being a manager is correcting your employees’ mistakes and helping them improve. However, people tend to feel threatened when managers tell them what they could improve, so they may become upset and defensive. Therefore, Laraway recommends that you limit yourself to one piece of negative feedback per five pieces of positive feedback. Doing so will reassure your workers that their jobs aren’t in danger and keep them in a positive mindset where they’ll be able to learn from their mistakes.

(Shortform note: Laraway’s five-to-one ratio of positive and negative feedback is only a rule of thumb—sometimes a struggling employee may need more coaching than this. In Carrots and Sticks Don’t Work, engagement expert Paul Marciano points out that it’s not helpful to sit on negative feedback while you wait for an employee review (or, in this case, until you have enough positive feedback to balance it out). First of all, if you’re not providing that feedback right away, then your employee is going to keep making the same mistakes. Second, waiting to give negative feedback sometimes results in barraging an employee with a lot of criticism all at once, which is exactly the problem that Laraway’s rule of thumb is trying to help you avoid.)

Boost Receptiveness to Negative Feedback

The goal of negative feedback is to ensure that your employee is both willing and able to learn from their mistakes. That’s why giving helpful feedback is often about how you present your feedback, as much as it’s about what the feedback actually is.

To make sure an employee is receptive to your feedback, especially if it’s negative feedback, be specific and impersonal—focus on what happened and the impact it had, rather than on the person. For example, if you didn’t get an important report in time, don’t pass judgment by accusing your employee of being careless or lazy; that will cause them to become defensive and unreceptive to what you have to say. Instead, you might simply say that the report was late, which left you scrambling to get the data you needed in time for a meeting.

Then, after you’ve given your feedback, offer a suggestion for how the employee could avoid this problem in the future. For example, next time that report is due, they could make it their top priority for the day and set aside all their other work until it’s finished.

Coaching: Measuring Your Effectiveness

Again, Laraway says that the best way to judge your effectiveness as a coach is to survey your team. To see how well you’re doing as a teacher, ask your employees to rate you in three categories:

1) Helpfulness. For example, ask: How useful is the feedback you get from your manager? Do you receive a good mix of positive and negative feedback?

(Shortform note: Laraway talks a lot about how to give feedback, but he doesn’t say much about when or how often to give it. In No Rules Rules, Netflix cofounder Reed Hastings says that feedback should be given frequently and as soon as possible. In other words, provide praise and criticism as issues arise; for example, don’t wait for a scheduled coaching session when it’s feedback that your employee could use now.)

2) Approachability. For example, ask: How comfortable are you with bringing problems and concerns to your manager? Do you feel like your manager is someone you can easily talk to?

(Shortform note: Some leadership experts argue that an approachable manager isn’t necessarily one who’s always warm and friendly, but rather, one who’s reliable. Therefore, to show your employees that you’re approachable, help them to understand how you reach your decisions, and make sure your rationale is as consistent as possible; if you have a reputation for unpredictability, your employees will try to avoid you. Also, show compassion for your employees by asking questions about their work before you step in to help so that your assistance is effective. Finally, while management sometimes requires “tough love,” your employees should understand that your goal is always to support them, not to scold or punish them.)

3) Care. For example, ask: How often does your manager ask for your feedback? How well does your manager address your concerns?

(Shortform note: Asking for feedback as well as giving it creates bidirectional feedback (feedback that goes both ways). Bidirectional feedback creates an ongoing conversation between you and your employees and shows that you care about their concerns as well as the company’s business concerns. Taking employee feedback doesn’t necessarily mean doing what they say, but it does create opportunities for open, honest communication between you and your team. In other words, if an employee’s feedback isn’t practical or relevant, that’s a chance for you to explain your position and come to an understanding with that employee, instead of carelessly brushing aside their concerns.)

Management Focus #3: Career Development

Laraway’s third and final focus area for managers is career development: helping employees to plan and realize their long-term career goals, not just their current job goals. Notably, this focus area includes helping your workers advance their careers even if doing so means they eventually leave your company.

In this section, we’ll examine Laraway’s suggestion of using three crucial meetings to build the foundation for an employee’s career development. We’ll then discuss how you can gauge your effectiveness in this area.

The Three Meetings

As with all management focus areas, career development should be an ongoing process with each of your employees. However, to be effective in this focus area, Laraway recommends setting three meetings with each employee, each with a specific focus.

At the first meeting, ask your employee how they got to their current job role. Ask about their past—their education, their previous jobs, and why they applied for their current position. Knowing your employee’s history will give you a more thorough understanding of them as a person, including their interests, shortcomings, and job skills that may not come up in their current position. This understanding will make you better able to help them find and get their dream job.

(Shortform note: Discussing an employee’s history has benefits beyond just helping them with career development; it can also help you to forge a more personal connection with that employee, which also helps boost their engagement. In Trillion Dollar Coach, Bill Campbell describes the value of getting to know your staff as human beings—talking to them about their lives helps foster connections and reinforces job satisfaction.)

At the second meeting, ask about their goals and their aspirations. What do they hope to get from their current job? What do they hope to accomplish over the next year? Five years? What’s their ultimate career goal?

At the third meeting, work with the employee to create what Laraway calls a Career Action Plan (CAP). In short, this is a plan to get the employee from their current position to the dream position that they described in the second meeting. What skills will they need to develop? What work experience will they need? How can they accomplish this, and how can you help as their manager?

Tip: Set SMART Goals

Laraway suggests learning your employees’ goals, then helping them make career plans to reach those goals. However, he doesn't offer a lot of concrete advice on how to do that. One useful strategy is to make a career plan using a series of what Charles Duhigg (Smarter, Better, Faster) calls SMART goals.

SMART goals are objectives that follow certain criteria. They must be:

• Specific. Outline a targeted objective, not a vague aspiration.

• Measurable. You must be able to measure the goal’s success—in other words, there has to be a way to know when you’ve reached it.

• Achievable and Realistic. You must have the time, resources, and skills to complete this goal.

• Timely. Have an expected timeline for accomplishing the goal.

Helping your employees set specific, feasible goals—and a timeline to go with them—will create a framework for their career development.

Career Development: Measuring Your Effectiveness

To find out how effectively you’re helping your workers with their career development, Laraway suggests asking employees to rate you in the following two categories:

1) Constructiveness. Ask: How well does your manager support your career development? How helpful is your manager’s advice about your career? How frequently does your manager encourage you to take on new challenges or learn new skills that may help you in the future?

(Shortform note: One thing Laraway doesn’t discuss in this section is the importance of helping your employees play to their strengths. Ideally, someone’s dream job will be something they have a natural aptitude for, but that’s not always the case—and sometimes they don’t even realize what they’re good at. An attentive manager can help by recognizing and highlighting what the employee does well and what they seem to enjoy. Then, as you continue working with that employee, you might find opportunities to tweak the career plan you’ve created to better suit their talents and interests.)

2) Care (a repeat category from coaching). How strongly do you agree with the statement, “My manager cares about me as a human being, not just as an employee?”

(Shortform note: In Radical Candor, Kim Scott writes that in order to truly care about your employees, you have to practice self-care first. Her reasoning is that it’s hard, if not impossible, to truly care about other people when your own needs aren’t being met or you’re distracted by your own problems. She adds that self-care looks different for each person: Some people need to meditate quietly in the morning to prepare for the day, while others need to go to the bar with friends after work. In short, doing whatever keeps you happy, healthy, and focused will be good for you and for your team.)