Motivate Like a CEO was published just as many Wall Street CEOs were being outed for their excesses.  The last few months have been dominated by news of executives taking big bonuses, in spite of of the fact that their companies have lost billions.  They have flown in their private jets to Washington D.C. to beg for government bailouts, and they’ve laid off people who had trusted them to make good decisions. 

I’ve been asked more than once, quite legitimately, ”How relevant is a book on how CEOs motivate people, when many CEOs are hardly acting in the best interest of their companies?” 

Of course, there is an answer and its a good one.  Thousands of CEOs are out there right now, doing the right thing, setting an example, sacrificing everything, and looking out for their people.  

The latest case in point: Paul Levy, who runs Beth Israel Deaconess Medical Center in Boston.

Levy was wrestling like every CEO with how to cut costs.  He walked around his hospital and saw  technicians, secretaries, administrators, therapists, nurses, the people who are the heart and soul of any hospital.  It looked like keeping all of them with the economy in freefall was going to be impossible.  

As Kevin Cullen reported in the Boston Globe, Paul Levy made a last minute decision based on his gut.  He got up infront of the entire staff and said, “I want to run an idea by you that I think is important, and I’d like to get your reaction to it.”  He went on to explain that he wanted to protect the lower-wage earners - the transporters, the housekeepers, the food service people.  But he explained it would mean the rest of the hospital employees would have to make a bigger sacrifice.   ”It means that others will have to give up more of their salary or benefits.”

Cullen reports Levy had barely gotten the words out of his mouth when Sherman Auditorium erupted in applause. Thunderous, heartfelt, sustained applause.  I’ll let his article take it from here:

“Paul Levy stood there and felt the sheer power of it all rush over him, like a wave. His eyes welled and his throat tightened so much that he didn’t think he could go on.

When the applause subsided, he did go on, telling the workers at Beth Israel, the people who make a hospital go, that he wanted their ideas.

The lump had barely left his throat when Paul Levy started getting e-mails.

The consensus was that the workers don’t want anyone to get laid off and are willing to give up pay and benefits to make sure no one does. A nurse said her floor voted unanimously to forgo a 3 percent raise. A guy in finance who got laid off from his last job at a hospital in Rhode Island suggested working one less day a week. Another nurse said she was willing to give up some vacation and sick time. A respiratory therapist suggested eliminating bonuses.”

Levy reports he was getting about a hundred messages per hour. That’s what happens when you do the right thing.  People recognize it for what it is - genuine concern about the people who make the place run. 

I’m not suggesting that many companies didn’t have to make layoffs, or that downsizing for some was not a good decision. No CEO can ignore the economic realities that confront us.  Every CEO has to make the tough calls.  But what was extraordinary here is that everyone was willing to make some sacrifices, when presented the option by a CEO who not only cares, but is looking for creative solutions that won’t damage the fabric of the organization.

How motivated do you think those employees who might have lost their jobs will be now?  They aren’t just grateful to Paul Levy, they’re grateful to their colleagues who are making sacrifices too.  The lesson on motivation is when you set something in motion, and people know its right, they’ll get behind you 1,000 percent.

Click here to read the full test of Kevin Cullen’s article about Paul Levy on Boston.com

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Reuters reports this morning (Monday January 26, 2009) that the U.S. business climate is the worst in 27 years.  The National Association of Business Economics‘ (NABE) quarterly industry poll found that the economic slump worsened in the fourth quarter and the majority of respondents expected gross domestic product to contract at a faster pace in 2009.

“The NABE’s industry survey depicts the worst business conditions since the survey began in 1982, confirming the U.S. recession deepened in the fourth quarter of 2008,” said spokeswoman Sara Johnson.

I’m not posting this to promote the gloom and doom news.  I’m want to talk about how leaders … how you…must act now - to focus your organizations, survive and position yourself for the future. 

First, remember while times are still challenging this is historical data.  There will be an economic stimulus package out of Washington.  While the details are being hammered out - we can hope it will address both the credit crisis and lending, as well as job creation and infrastructure.

Moreover, what we need right now is for business leaders to step up and lead the way.  We need to hear from America’s top business leaders and get their voices engaged in the public discourse.   Business leaders have a role in restoring public confidence.  We cannot leave it all up to Washington.

In the meantime, what we need to recognize is in our own organizations, there is a “secondary crisis” of confidence.  As we started New Year - looking ahead to the inauguration of President Obama in sight, most of us felt hopeful about a recovery, if not immediately, at least this year. 

But the drumbeat of economic news — and the fact that we still don’t have a stimulus package is now creating a pervasive, sense of malaise in many companies that is going to take over if we don’t manage our own emotions and give people hope.

Pessimism and doubt threaten to undermine the very qualities within your organization that will speed a recovery – productivity and creativity.  This is why now more than ever, business leaders need to get out front, and motivate and inspire their teams.

As a leader, you have no control over the credit crisis or the stimulus package but you can and must manage the motivation of your own team and keep people focused on what matters now.  The biggest mistake many leaders are making at this moment– they are not communicating often enough with their own teams.  You need to open up the channels of communication, even on a daily basis – by email, blog, through meetings let everyone know how they can help – and solicit their ideas.  In crisis mode, executive teams tend to become insulated – instead they need to put more time on their calendars for communication and make sure they are in the loop with employees and customers.

While writing Motivate Like a CEO, what I saw in the interviews and research was clear - a motivated workforce is the key to building a strong culture that will survive the ups and downs of the economy.   

What’s the biggest worry on the minds of your employees?  They’re hearing that 1.9 million jobs were lost in the last four months of last year. The NABE report said job losses are expected to continue in the first half of 2009. 

Even if you are still uncertain about what lies ahead:

• Get out front with a positive message
• Tell people what you know
• Ask for their ideas - get them engaged
• Focus your message on the most important things they can do
• Communicate good news immediately, even if it’s small
• Be honest about where things stand - don’t sugarcoat
• Tell them you believe in them
• Reward and recognize achievements

Today ONLY, I want to let you know that we have a 24-hour complimentary offering of gifts, if you purchase a copy of my new book, Motivate Like a CEO, Communicate Your Strategic Vision and Inspire People to Act! 

Purchase the book, copy your confirmation number and send it to moconnor@bates-communications.com and we will send you a full page of links where you can collect dozens of complimentary gifts like audio programs, white papers, tip sheets and other valuable offers from authors and experts like Keith Ferrazzi, (Never Eat Alone); Lois Frankel (Nice Girls Don’t Get the Corner Office); Lynn Robinson (Divine Intuition and Trust your Gut); Sheryl Lindsell Roberts (Business Writing books galore) and many, many more! 

Among those who are also “buzzing” about the book today are Jeffrey Gitomer (Little Red Book of Sales) David Allen (Getting Things Done) and we have endorsements from among others, Ken Blanchard (One Minute Manager).

Remember, copy and paste your confirmation number from amazon, and email it to Meredith O’Connor: moconnor@bates-communications.com

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The other day I was talking to the head of leadership development for a global company.  “What does it really take, when you have 30,000 employees and only 350 senior positions?” I asked. 

“The differentiation is around leadership behaviors,” she replied.

“What does that mean to you?”  I asked.

“It’s the everyday things you do that demonstrate you have it, beyond your technical abilities,” she said. “Like your management style, your leadership style, and if people trust you- if you’re well respected.  And all of those things come down to your ability to communicate.”

Too often, executives focus on how to make a big impression; the big project, the big deal, the big customer, the big whatever.  It’s not that those aren’t important.  But  the people who are making the decisions about your future are watching how you communicate every single day. 

Just something to keep in mind - on your way to the top.

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