Introduction
Prices are high. Inflation is high. Interest rates are high. Getting by on the traditional 9-5 is not as simple as it should be. As such, increasingly workers are turning to a side hustle to make ends meet. For many, balancing a full-time job while pursuing a side hustle is not just a means of boosting income but also a way to fulfill entrepreneurial aspirations, hone new skills, and achieve personal growth. However, managing both can be a challenging endeavour, demanding careful planning, time management, and strategic decision-making.
By the numbers
In June of this year, more than half (54%) of Americans said they’d adopted a side hustle to supplement their primary source of income in the last 12 months [1]. In the UK, 43% of Brits have a side venture [2]. Gen Zers are most likely to have a side gig (71%), but millennials are close behind (68%). [3]
Do you need a side hustle?
The motivations for taking on a side hustle are diverse. Maybe it’s necessary to make rent, with the cost of living crisis making just getting by a difficulty for many; additional income can provide financial security, help pay off debts, or fund personal goals such as travel, education, or home ownership. Side hustles also offer opportunities to learn new skills or enhance existing ones, which can be beneficial for career advancement. Many people have hobbies or interests they wish to pursue professionally, passion projects which might not be feasible through their full-time job. Additionally, a side hustle can serve as a testing ground for business ideas, potentially leading to full-time entrepreneurship.
Before committing to the delicate balancing act of juggling two jobs, you need to assess your capacity to do so. Consider the intensity of your full-time job, your personal commitments, and your energy levels. You need to be realistic about the time and energy you can dedicate to a side hustle without compromising your well-being. If you’re already swamped at your full-time job then taking on an additional workload is a bad idea –– you’ll burn out quickly and end up more likely to lose your original job than to earn any additional income.
Equally important is choosing the right side hustle. It should align with your skills, interests, and available time. For those pursuing a passion project, this is of course already baked in, equally so for anyone looking to set up a personal business on the side. But for those less sure where to start, who are simply looking for a little bit of extra cash flow, consider whether you can leverage existing skills or explore new areas of interest. Evaluate the time commitment required and select a side hustle that fits your schedule. Most importantly, choose something you enjoy to maintain motivation and prevent burnout.
As Forbes Council Member John M. O’Connor writes of his own journey, “The times I tripled up [my workload] to “make more money” but did it just for the money, it created a universal imbalance and injured relationships and the effectiveness of my other work” [4]. Learn from his mistakes.
Managing your time
A lot of balancing a full-time job and a side hustle comes down to time management. Writing in Forbes, Caroline Ceniza-Levine, founder of the Dream Career Club and author of Jump Ship: 10 Steps To Starting A New Career, recommends setting up “a clear timeline for how long you plan to juggle the two and decide what success markers you want to see along the way to ensure you are on the right track.” [5]
Freelance writer and stand-up comedian Virginia Hogan implores workers pursuing a passion project to “[set] aside specific hours for it. Not a specific amount of time — specific hours. Block out on your calendar when you’re going to write that short story or build that desk. It might only be once a week, but make sure it’s planned.” [6]
Essentially, the important thing is to be organised. Do not allow your side hustle to linger over you as one further task to undertake, like changing the bedsheets or going to the gym. Because let’s face it, we all know how easy it is on a lazy day to put those activities off; all of a sudden the routine is on the backburner and difficult to re-ignite.
Just as it’s important to know yourself in order to get an idea of what kind of side hustle you should be engaged in –– where your skills lie, what skills you want to learn –– it’s also important to know yourself so as to better schedule your two income streams. “Pay attention to when you do your best work,” recommends Ceniza-Levine. “If you know that you are just too unfocused after a full day of work, then you have to get up early for your side business. Or you have to clear your weekends for it.” [7]
What is your worth?
Let’s say you’re just getting started on your side hustle journey, and that you’ve chosen a career path that allows you to dictate rates, as opposed to picking up a second salaried job. How do you know what to charge?
Bernadette Joy, a leadership coach specialising in financial freedom, having paid off $300,000 of debt in three years and invested enough to retire by 40, recommends matching your revenue goal to your housing (or any other specific financial target you want to reach). When she first started her side hustle, she wanted to earn enough to pay off her monthly mortgage. That was it. To do that, she needed to make $2000 a month (on top of her salary, which she would use for all other spending and saving).
She realised that, “To reach $2,000, I could choose from selling to (a) 100 customers at $20;
(b) 20 customers at $100; or (c) Two customers at $1,000.”
“I ultimately chose the middle option,” she says, “rationalising on average I needed one customer every weekday, and I could still take the weekends off. I earmarked every sale toward my mortgage and that made each sale feel more rewarding.” [8]
The advice is simple. Pick a financial goal. Work out how much you’ll have to charge and how many clients you’ll need to make that goal. Put all the money you earn towards that goal.
After that, your savings will take care of themselves.
Getting the balance right
Now, let’s say you’ve set up your side hustle –– you’ve set your goals and have set aside the appropriate amount of time each week or month to meet them. How do you ensure all this new work doesn’t interfere with your day-to-day job? First, you “need to decide your objectives for your current job,” according to Ceniza-Levine.
“Do you want to just get by, or are you going for a promotion? Is there restructuring or other changes afoot where you have to pay closer attention? The job/ side business juggle isn’t only for people who hate their job. Maybe you like your job enough but want an extra and/or different stream of income. If you like your job, you need to be clear about your goals there as well, not just for the new business.” [9]
It could be that you care little for your 9-5 and are setting up this new venture as a way to, with luck, eventually pivot to your side hustle full time. If that’s the case, in theory you could phone it in at the office, just doing enough to scrape by, then dedicating the bulk of your energy to your preferred work. This is a nice idea, but can be flawed in practice.
If you work a 9-5, you’re at your day job eight hours a day. If all that time, you are doing the bare minimum, that is going to impact you. There exists such a thing as momentum. If you slouch around for eight hours a day, you run the risk of becoming a slouch –– and then where will your new venture be? Not to mention you run the risk of getting fired for lousy performance; all of a sudden your new scheme to make more money has left you stripped of your financial base.
You’re also likely to burn relationships. People around the office or clients will see you as someone not worth doing business with. They may remember that when you’re going it alone and reaching out to them for help later. It’s better to make yourself a good employee and carry that through to all aspects of your work, in-office and out. As James Clear, author of Atomic Habits, writes: “If you’re looking to make a change, then I say stop worrying about results and start worrying about your identity. Become the type of person who can achieve the things you want to achieve” [10]. Don’t be someone who works hard on just one thing; be a hard worker.
It could be that you do also have some boring, administrative work to do as part of your day to day job. And as noted earlier, you should know yourself well enough to know what time of day you tend to work best. Try and get this less engaging work done during times when you’re in a bit of a lull anyway, rather than wasting your best energy on them. As Virginia Hogan more bluntly puts it, “Use your least productive times to do boring work on your employer’s dime.” [11]
Hogan also recommends organising work based on how badly other people are depending on it. She calls this approach her “Avoid Receiving Angry Emails” plan. “This is loosely defined,” she writes, “but I mean whether or not there will be professional consequences for you if you don’t complete tasks in a timely manner.” [12]
You don’t want your day job and your side hustle to overlap. But if you find yourself in a position where you’re facing potential negative professional consequences in one endeavour without much to do in the other, there are exceptions to be made. But don’t normalise it. It will come back to bite you.
Hustling
Juggling a full-time job and a side hustle in today’s high-cost, high-inflation economy is, for many, not merely a trend but a necessity. But the challenge of balancing these dual roles requires strategic planning and diligent execution. Workers need to be realistic about their capacity and the demands of their full-time job. Without careful consideration, the risk of burnout and potential negative impacts on their primary employment increases. Effective time management is key. side hustles should be well-planned, with assigned hours every week and a clear, attainable fiscal target in mind. By entering into a side-venture with these things in mind, one can grow their income, develop their passions, and learn new skills for life.
More on Time Management
Oliver Burkeman Four Thousand Weeks: Time And How To Use It – Podcast
Manage Your Energy, Not Your Time
How to Focus and Become Indistractable with Nir Eyal – Podcast
Sources
[2] https://www.finder.com/uk/business-banking/side-hustle-statistics
[11] https://www.forbes.com/sites/ginnyhogan/2023/04/17/how-to-balance-your-full-time-job-with-your-side-hustle/ [12] https://www.forbes.com/sites/ginnyhogan/2023/04/17/how-to-balance-your-full-time-job-with-your-side-hustle/
Introduction
In 2005, David Foster Wallace, the celebrated author renowned for his lofty, intellectual style and profound, often humorously contempful explorations of the human experience (not to mention his trademark bandana), delivered a now-iconic commencement speech to the graduating class at Kenyon College. His speech was titled “This is Water” [1]. That title, seemingly banal, delivers a profound, even life-changing message (if the YouTube comments are to be believed, at least).
Wallace urges graduates to cultivate a deliberate awareness of the seemingly obvious, the everyday realities that often slip by unnoticed. He does so through a short and simple anecdote.
There are these two young fish…
Foster Wallace tells the story of two young fish swimming merrily along. On their journey, they encounter an older fish swimming in the opposite direction. The older fish nods and says, “Morning, boys. How’s the water?” The two young fish swim on for a bit before one turns to the other and asks, “What the hell is water?”
“The point of the fish story,” Foster Wallace explains, “is merely that the most obvious, important realities are often the ones that are hardest to see and talk about. Stated as an English sentence, of course, this is just a banal platitude, but the fact is that in the day to day trenches of adult existence, banal platitudes can have a life or death importance, or so I wish to suggest to you on this dry and lovely morning.” [2]
Modern water
The anecdote of the fish in water poignantly illustrates our tendency to take the fundamental aspects of our existence for granted. We live immersed in the water of our daily routines, oblivious to its very existence until someone points it out. The “water” in our lives could be anything –– the ability to have a meaningful conversation, the beauty of a sunrise, the simple act of breathing, all these cosmically miraculous aspects of the human experience that we steadfastly fail to recognise.
Foster Wallace goes into great detail in the speech laying out just how difficult it is to spot the water around us. And that was in 2005. In the subsequent years, the water, if at all possible, has grown more transparent and undetectable still. We live amongst an attention-sapping multimedia environment explicitly designed to absorb us. Smartphones and social media make it not just impossible to notice our settings but to acknowledge that we’re swimming at all. Our attention, the aspect of ourselves Foster Wallace goes to great lengths to say we should prize, protect and treasure, is a currency traded amongst Silicon Valley power brokers. Our attention is bought and sold behind our backs, often for all too cheap. And that is just one of the battles currently facing us.
We are also battling the cult of false positivity, staring blankly at a curated reality social media drip feeds us, feasting on slideshows and highlight reels of other lives we deem better than our own. We are repeatedly thrust into the twin states of feeling inadequate while simultaneously burning with a need to curate our own false reality online too. We must play along with the great lie or else allow our lives to appear lesser, mundane, forgettable. Pretty soon everything is distorted.
We are battling the fear of missing out, confronted with an endless need to stay connected, to check back in online for fear that we will be alienated and out of step with those around us if we fail to. It’s hard to be fully present in the moment when all the while you’re in it, you wish you were in another one.
We are battling our brains, most specifically the default mode network. This is our brain’s natural mode of operation that kicks in when we’re not actively engaged in a task. This mode often leads to ruminating on the past or worrying about the future, further pulling us away from the present moment.
In the context of such a society, Foster Wallace’s message about cherishing the ordinary becomes even more relevant. These factors combined create a constant undercurrent of distraction, making cultivating sustained awareness feel nigh on impossible. But it is doable. It just requires effort.
The benefits of making that effort are numerous.
The benefits of awareness
A recent study published in the journal JAMA Internal Medicine found that those who completed a mindfulness awareness program experienced less insomnia, fatigue, and depression after six weeks than those who received sleep education [3]. A study that was presented at the American Heart Association Scientific Sessions 2022 reported that after participating in an eight-week mindfulness behaviour program, adults who had elevated blood pressure at the beginning of the program had significantly lower blood pressure and reduced sedentary time at their six-month follow-up. [4]
In the UK, it is estimated that as many as 30% of GPs refer patients to mindfulness training [5]. That’s because the benefits are well-documented and because in theory it’s simple (though as anyone who has tried focusing on the breath will tell you, it’s difficult to believe how quickly the mind drifts away).
By becoming more aware of our own thoughts and feelings, we can develop a deeper understanding of those around us. When we pay attention to the everyday details, we can cultivate a genuine appreciation for the beauty and wonder of the world. Being present allows us to make more conscious choices, rather than acting on autopilot, and can reduce the amount of time we waste ruminating on the past and worrying about the future.
As Foster Wallace puts it, “Learning how to think really means learning how to exercise some control over how and what you think. It means being conscious and aware enough to choose what you pay attention to and to choose how you construct meaning from experience” [6]. The simple act of acknowledging the “water” of our lives can lead to a more meaningful and fulfilling existence.
Cultivating Awareness
Being aware of one’s surroundings does not just happen. It is a conscious act, and a challenging one. As Foster Wallace puts it, “People who can adjust their natural default setting this way are often described as being “well-adjusted”, which I suggest to you is not an accidental term” [7]. So how does one become well-adjusted? How does one find a way to spot the water around them in a world designed to distract us?
As previously noted, one option is mindfulness. The availability of mindfulness apps makes it easy to get started. Incorporating just ten minutes a day into your daily routine can change your perspective in monumental ways.
Another option is gratitude exercises. Taking time each day to reflect on things you’re grateful for can shift your focus to the positive aspects of your life. It’s a useful countermeasure against negative thinking.
If your distraction is not just internal but external –– ie you are overly occupied by your phone and digital spaces –– it could be worth attempting a digital break. You don’t have to go cold turkey. You could start small by saying “I’m not going to use my phone for half an hour before bed.” Then extend that period out or add further half-hour breaks to your day, during lunch or after work for example. A useful tip is to put your phone in another room during any detox to remove the temptation. Out of sight really is out of mind.
Try focusing on your senses. This is a step that will be recommended to you in mindfulness practices but you can do any place, any time, by yourself. Simply make the choice to notice what surrounds you –– sights, sounds, smells, tastes, and textures. This simple act can anchor you in the present moment.
Make a conscious effort to engage in activities that require focus. Activities like reading, spending time in nature, or creating art can demand your full attention, fostering a state of mindfulness or even flow state. It’s time better spent than scrolling.
Observe your thoughts rather than judging them. This too is a pillar of mindfulness practice but something you can do alone. Every thought you’ve ever had has passed away, the one you’re currently lost in will too. Try to notice your thoughts as a passive bystander rather than lending them overdue creed, and do the same with people too. When interacting with others, try to observe them without judgement. It can lead to deeper connections and a better understanding of the people around you.
That’s a lot of examples but, as noted, most of them can be practised even for just a few moments throughout the day –– it’s just about breaking the spell of thought and noticing what’s around you. Still, it’s recommended you start small. Don’t try to overhaul your life overnight. Begin with easy, manageable changes, like taking a few mindful breaths throughout the day.
None of these strategies are a one-time fix, rather a lifelong practice. By incorporating any or all of them into your daily routine, you can cultivate a greater sense of awareness and begin to truly appreciate the “water” of your existence. At the risk of sounding guru-adjacent, it can help set you free from the prison of your mind. As Foster Wallace says, “The really important kind of freedom involves attention and awareness and discipline, and being able truly to care about other people and to sacrifice for them over and over in myriad petty, unsexy ways every day.” [8]
This is water
David Foster Wallace’s “This is Water” speech serves as a powerful reminder to appreciate the seemingly mundane aspects of life. In a world overflowing with distractions, cultivating awareness requires conscious effort. It is difficult. But the rewards are substantial.
By adopting the practices outlined above, we can embark on a lifelong journey of self-discovery, increased appreciation, and a deeper connection with ourselves and the world around us. The “water” of our lives is always there, waiting to be acknowledged. It’s up to us to become the “older fish” who can see it, savour it, and appreciate the profound beauty in the ordinary.
More on Mindfulness
Stress Management and Leadership Through Mindfulness
Breathing, Cold Exposure, and Mindfulness with Níall Ó Murchú
Mindfulness, Meditation and Compassion in the Workplace and in Life with Scott Shute – Podcast
Sources
[1] https://www.youtube.com/watch?v=DCbGM4mqEVw
[2] https://fs.blog/david-foster-wallace-this-is-water/
[6] https://fs.blog/david-foster-wallace-this-is-water/
[7] https://fs.blog/david-foster-wallace-this-is-water/
[8] https://fs.blog/david-foster-wallace-this-is-water/
Introduction
Capitalism has been around for decades. The field of research which seeks to understand the concept of capitalism, has often been defined as the field of comparative political economy as a result of the focus on differences in institutional settings which determine economic outcomes (Regini, 2014). These differences are frequently seen not as products of business decisions but as legacies from various historical contexts. Today, notable differences remain in the industrial relations systems of several countries globally (McLaughlin and Wright, 2018).
Defining Capitalism
Definitions of capitalism have varied over the years since the 19th century. It has been used to characterise the emerging shape of the modern economy and the transformation of society as a whole. Capitalism is an economic system in which private individuals own property and operate according to their own interests, with supply and demand freely determining market prices in a way that can best serve society (Fund, 2017). In the twentieth century, the term “capitalism” became more frequently used to express political perspectives on the desirability and permanence of capitalism as opposed to socialism (Delanty, 2019).
Liberal Market Economies & Coordinated Market Economies
Liberal Market Economies (LME) and Coordinated Market Economies (CME) are two forms of capitalism that can be applied to both past and present theories of capitalism (Crouch, 2005). The concept of a liberal market economy, originally defined by Hall and Soskice, is characterised by the adoption of market mechanisms and agreements to manage relationships among suppliers and buyers. Additionally, they identify coordinated market economies, which are characterised by bargaining-based labour relations and arrangements that reflect employees’ longer-term commitments (Lansbury and Bamber, 2020). LME economies rely on labour markets that set wages through competition and typically have less regulation to protect employees and provide them with security (Crouch, 2005).
Social & National Factors in Relation to Market Economies
The developed world is often divided into liberal market economies (LMEs), such as the UK and USA, and coordinated market economies (CMEs), such as Japan and Scandinavian countries (Dibben and Williams, 2012). However, it is important to recognise that these approaches to capitalism have limitations and often do not account for differences in the social or political makeup of each country. Lansbury and Bamber (2020) highlighted that the institutional bases on which German and Japanese corporate governance arrangements are built, as well as the historical events that formed them, differ despite generating similar outcomes. This illustrates the importance of considering social and national influences on industrial relations based on the country in question. Despite pressures for convergence in industrial relations systems, Europe has maintained distinct national industrial relations systems (Black, 2005). Social and national factors are ultimately what must be taken into consideration when analysing national industrial relations systems (Lansbury and Bamber, 2020).
The Effect of External Forces on the Economy
Prices and wages typically take a while to adjust to the forces of supply and demand, with demand playing the largest role in determining economic growth (Hackemy 2017). The economy can transition between major phases of development and contraction through boom-and-bust cycles, which are a feature of economic growth (Hakemy, 2017). Today many multinational corporations are faced with the western style model of capitalism (Werhane, 2000). Businesses can pursue their ambitions competitively without the hassle of restrictions and undue regulations surrounding labour restrictions which can result in growth and economic good in every country (Werhane, 2000). It is important to remember that in this context, capitalist economies and industrial relations systems cannot be generalised for globally. The perception of what is good and beneficial to the employee and multinational corporations will vary from country to country based on the social and cultural norms (Werhane, 2000).
Conclusion
Capitalism can be useful in understanding the inner mechanisms of an economy. LME’s & CME’s illustrate than capitalism can be organised and function in many ways. Ultimately it is essential to consider the multitude of factors which can contribute to a successful economy including social, national and historical context.
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Crouch, C. (2005) ‘Models of capitalism’, New Political Economy, 10(4), pp. 439–456. Available at: hTps://doi.org/10.1080/13563460500344336.
Crouch, C., Schröder, M. and Voelzkow, H. (2009) ‘Regional and sectoral varieties of capitalism’, Economy and Society, 38(4), pp. 654–678. Available at: https://doi.org/10.1080/03085140903190383.
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Introduction
A new boss taking over can be difficult. Change often is. For employees, the promise of fresh perspectives and strategic shifts can be exciting. But the uncertainty surrounding changing dynamics and expectations can also be unsettling, for seasoned staff and recent hires alike. For those who liked their old boss, the new one is a daunting prospect. And even those that didn’t face an element of “the devil you know.” At such a juncture, all employees will be sat around the office contemplating what a change of leadership means for their futures.
Successfully navigating a leadership transition requires a proactive approach to ensure continued productivity and career satisfaction. How do you build a relationship with a new leader? How do you help ensure a smooth transition? In the worst case scenario, how do you spot a leader who isn’t going to serve you and what can you do to counter that?
Understanding the new leader
It’s natural for employees to want to know as much as possible about their new leader as quickly as possible. This is the person whose expectations they will now need to be meeting; they’ll want to know what those expectations are. Equally, given there is such a wide variety of leadership styles, they may wish to adjust their temperament or approach accordingly.
In the modern world, employees can often get a decent sense of their new boss’s approach and values in advance of their arrival through their online presence. Most people have a LinkedIn profile through which their new employees can evaluate their posts to get a sense of their leadership style, past successes and communication preferences. Even just a look at their employment history can provide a sense of their trajectory and offer hints as to their approach.
Equally, employees may be able to track down their boss’s personal social media accounts by way of Instagram, X (Twitter) or Facebook. Wise leaders will make these accounts as difficult to track down as possible. And wise employees may not want to risk exposing themselves as having perused their new boss’s personal account in advance of their arrival.
Following the new leader’s commencement comes the bedding in period, which depending on the leader and company in question can be a matter of weeks or months (one would hope not years). This period can be awkward and overly formal, with employees tip-toeing around the new boss and vice versa, everyone trying to figure the other out, fearful of earning themselves a spot in the bad books. Conversely, they can be overly contested, with a new leader looking to establish a foothold through shows of strength, maybe even ruthlessness. Meanwhile their more fiery underlings will either push back directly or raise dissent amongst their cohorts at every opportunity.
Neither of these approaches is ideal, though the first is obviously preferable. It’s only natural that things begin tentatively. Employees should try to make use of that early period to establish an amiable rapport with their new boss and to work out what kind of leader they are. Gather information, observe closely, and ask questions during initial meetings and interactions. How do they communicate? Are they direct and concise or more collaborative and open-ended? Do they favour quick decisions or encourage team input? Actively listen to their vision for the company and their priorities. Don’t hesitate to schedule a one-on-one meeting to clarify expectations or gain a better understanding of their vision for the department or company as a whole.
Building a positive working relationship
To state the obvious, you want to impress your new boss. And you want to do so at the earliest opportunity you can.
“Recognize that people do draw some impressions about you pretty quickly,” says Karen Dillon, coauthor of Competing Against Luck and the HBR Guide to Office Politics [1]. But how do you make sure those first impressions are positive?
Michael Watkins, chair of Genesis Advisors and author of The First 90 Days, advises you put yourself in your new boss’s shoes. “Keep asking yourself, ‘How can I help them get up to speed faster?’” [2]
Writing in Harvard Business Review, Carolyn O’Hara offers some practical advice as to how to build a strong rapport from day one [3]. She suggests (1) looking for common ground (2) being empathetic to your new boss’s situation (3) not laying it on too thick (or thin) (4) helping them achieve early wins, and (5) coming armed with solutions, rather than problems.
Equally, experts recommend discerning your new boss’s communication style early. “The sooner you get a sense of how they prefer to be communicated with, the better,” says Watkins [4]. Do they prefer email, calls, texts, or in-person discussions? Do they like to weigh all of the pros and cons before making a decision, or do they want to hear what you’d suggest? Knowing this information will help you avoid misunderstandings that could complicate your work or put you in a difficult situation.
Dillon says the best way to discern this information is simply to outright ask. “Even if they don’t have a great answer because they’re still figuring it out,” she says, “they know that you’re open to it and that you’re approaching them with the attitude, ‘I want to be effective for you.’” [5]
Onboarding a new manager
If you’re a long-serving member of your company, or if your new boss has previously worked in other fields and is less familiar with their new territory, they may be reliant on you to get them up to speed as to how the company functions. This onboarding process is pivotal. If you help your new boss hit the ground running, they’ll be indebted for you going forward. If you make life tricky, the opposite is likely to be the case.
According to research from Egon Zehnder, there are three main reasons why new leaders derail: 1) They fail to understand how the organisation works; 2) They don’t fit with the organisational culture; and 3) They struggle to forge alliances with peers [6]. A helpful, ambitious employee can see to it that their new leader doesn’t fall into any of those trappings.
In Harvard Business Review, Rose Hollister and Michael D. Watkins write that their research shows that those challenges were not dissimilar whether said new boss was an external hire or had received an internal promotion. Leaders they surveyed “said internal promotions were 70% as difficult as coming in from the outside.” [7]
Hollister and Watkins diagnose three fundamental types of learning when starting a new role: technical, cultural, and political [8].
They say that technical learning is about understanding what it takes to succeed in the job. In other words, getting up to speed with the specifics of the organisation’s roles, goals, capabilities, KPIs, and performance, as well as any key products, technologies, systems or customers. Cultural learning is about understanding the key behavioural norms that govern company norms, if there is a certain in-house style or process, for example. Political learning is about identifying the key stakeholders and internal relationships or hierarchies, and clarifying the decision-making processes.
When to be worried
While adjusting to a new leader requires flexibility and patience, certain situations may warrant concern. It could be that your new leader starts showing signs of misalignment with the company culture, or quite simply that they’re not a good leader or person. The impact of that will obviously be felt around the office and could negatively affect your career. So, what kind of signs should you be looking out for?
An obvious indicator that your new boss is not the right fit is if they display unethical behaviour. Some of that may be obvious and easily dealt with –– someone who openly partakes in harrassment, bullying or discrimination should be swiftly dealt with in the modern world. But equally look out for other more nebulous traits such as favouritism, a punitive streak, unpredictable moods or microaggressions.
If you notice these traits but sense they are down to a misunderstanding, it could be worth raising your concerns with the individual in question. If the signs are more pernicious, it may be time to report your concerns to human resources. If they fail to act, start looking elsewhere; anyone who works for a long period of time under a bad boss in a toxic environment tends to bear the scars. It’s not worth it.
Navigating new leadership
The arrival of a new leader presents a unique opportunity for both the individual and the organisation. While initial uncertainty is natural, a proactive approach can transform this transition into a springboard for growth and success. By understanding your new leader’s style, building a positive working relationship, and consistently demonstrating your value, you can position yourself for continued success within the changing landscape.
Remember, your career growth is ultimately your responsibility. If the new leadership creates an environment that hinders your professional development or well-being, don’t be afraid to explore new opportunities that better align with your career goals. The skills you develop during this transition, such as effective communication, adaptability, and a willingness to learn, will serve you well throughout your career.
More on Change Management
Mastering Change and Complexity: Strategic Leadership in an Uncertain Business World
Pioneering Change : A Case Study of Jeff Bezos Transformational Leadership at Amazon
Sources
[1] https://hbr.org/2016/10/how-to-build-a-strong-relationship-with-a-new-boss
[2] https://hbr.org/2016/10/how-to-build-a-strong-relationship-with-a-new-boss
[3] https://hbr.org/2016/10/how-to-build-a-strong-relationship-with-a-new-boss
[4] https://hbr.org/2016/10/how-to-build-a-strong-relationship-with-a-new-boss
[5] https://hbr.org/2016/10/how-to-build-a-strong-relationship-with-a-new-boss
[7] https://hbr.org/2023/02/how-to-onboard-your-new-boss
[8] https://hbr.org/2023/02/how-to-onboard-your-new-boss
Introduction
It’s a painful moment. You’ve gone from the sun and shore, waves crashing against the sand while you sip on a fruity cocktail, to the harshly lit office, two screens in front of you, a litany of meetings in the diary and a seemingly bottomless email intray. It’s the return to work from holiday, and for a lot of people it’s hell.
Re-entry shock, holiday hangover, call it what you will. For a lot of us it’s hard to not be overwhelmed by the stark transition, harder still to actually hit the ground running. These return periods often result in a drop in productivity, a slump in mood, and a sense of disconnection.
But there are ways to avoid the negative spiral a return to work can bring. With a well-planned post-holiday transition, you can turn this potentially stressful time into an opportunity for rejuvenation and renewed focus. By implementing strategic measures, both employees and businesses can benefit from a smoother, more productive return to work.
The need for holiday
Sometimes during this draining return period we think, “why did I even take that holiday at all?” We convince ourselves it wasn’t worth the stress and that it would have been better to keep stubbornly plodding along without a break than face such a contrasting yin and yang.
As an example, senior advisor and executive coach Darin Rowell, EdD, quotes his client “Leslie” in Harvard Business Review. “Coming back from vacation almost makes [it] seem not worth it. For me, it’s like psychologically accelerating from a cruising pace of 30 mph to a speed of 80 so I can get through my inbox, catch up on all the meetings I missed, and reconnect with my neglected clients. And that’s on top of the guilt I’ve been feeling about overburdening my team while they’ve been covering for me.” [1]
Leslie’s thinking is common, but misplaced. Holidays are worth the pain of returning, even if you’re overwhelmed. Rest is vital, not optional. Refusal to commit to proper R&R can have profoundly negative consequences.
As Rowell writes, “research shows that those who don’t take the opportunity to rest, recharge, and recover are at higher risk of exhaustion, low motivation, poor performance, and burnout, while those who engage in regular periods of work recovery enjoy better sleep, higher job satisfaction, more engagement, and higher job performance.” [2]
Meanwhile, studies have shown that women tend to be less likely to use all of their allotted holiday days as compared with men. [3]
“In general, women tend to experience more guilt and are less confident than men, so that may hold women back from feeling like they can ask for and have permission to take time off,” says Fiona Murden, founder of Aroka, an organisational psychology consultancy, and author of Defining You. [4]
Given that studies show that workers who use their vacation days may be more productive and creative, as well as more likely to get a raise and receive higher performance reviews, it’s vital that all workers take proper time off [5]. But especially important women feel free to, or else we risk expanding an already too large gender divide.
Why do we slump?
It’s all too easy upon our return to lay the blame for our disconnection at our own feet –– we didn’t plan well enough, we didn’t check our emails or properly delegate, we had too much fun away from the office and are now reaping what we sewed. This melodramatic self-flagellation serves no one, and is fundamentally misplaced.
It’s only natural for the return to work life to be difficult. Holidays disrupt our biological rhythms and cognitive functions. Jet lag from travel, irregular sleep patterns, and changes in daily routines can all affect our ability to reintegrate into work. For instance, altered sleep cycles can impact our circadian rhythms, leading to fatigue and decreased cognitive function. Additionally, the pleasure of holiday activities boosts dopamine levels, creating a stark contrast when returning to routine tasks.
Additionally, our brains quite literally exaggerate the realities of day-to-day life, making the return to the mundane seem disproportionately more anxiety-inducing and depressing than it actually is. Indeed, according to Dr. Melissa Weinberg, a research consultant and psychologist specialising in well-being and performance psychology, this exaggeration of the brain that exacerbates our post-holiday blues is actually a sign of healthy psychological functioning.
“It’s just one of a series of illusions our brain fools us into believing, in the same way we think bad things are more likely to happen to others than they are to us. Somewhat ironically, the capacity to fool ourselves every single day is an indication of good mental and psychological functioning,” sh explains in The New Daily. [6]
“So, whether we did enjoy our holiday, and whether we’d rather be on vacation than back at work, our brain is wired to make us believe that we did, or that we would. In doing so, we pay the emotional cost for a well-enjoyed break, and we experience a comedown toward our baseline of well-being,” she explains.
That’s not to mention the emotional toll of time off. According to the National Alliance on Mental Illness, 64% of people report being affected by holiday depression, and it’s most often triggered by financial, emotional, and physical stress of the season. [7]
The stress of holiday spending, combined with the abrupt end of relaxation and leisure, can lead to post-holiday blues. Adjusting back to work routines can feel daunting, and the emotional high of the holiday season may make the return to daily responsibilities seem even more monotonous –– you’re seeing the nine to five you were accustomed to with fresh eyes. It takes some time to fall back into the routine.
Negative impact
Needless to say, the post-holiday slump impacts the business as well as the returning employee. Decreased productivity can lead to missed deadlines and a backlog of work, while disengaged employees are more likely to consider leaving their jobs, increasing turnover rates. This period can also disrupt team dynamics and project timelines, affecting overall business performance. As such, it’s important we have plans in place to ensure our reintegration to working life is as smooth as possible.
Strategies for a smooth transition: Delegate
The first step to a smooth reintegration comes well before you’ve even set off. Once those rest days are in the diary, you want to inform those around you of the timings of your absence and ensure you’ve got the right people in place to cover your assignments. How you approach that will vary depending on your seniority. A manager will need to ensure someone is there in their stead to oversee operations. For a more junior member of the team, it’s best to have your manager do the delegating for you rather than take it on your own back; they know the strengths of the team better than you do.
A lot of the stress of returning post-holiday is the mountain of work that awaits you. Having a prepared and trusted set of delegates on top of the detail alleviates that pressure. Either they’ll have covered all your work, or will have been sufficiently across the detail that they can brief you on what you’ve missed so you’re not scrambling through your inbox searching for anything urgent.
Strategies for a smooth transition: Don’t overdo it
When we first return to work, it’s tempting to want to make up for lost time. That often means we end up overdoing it during our first week or even day. It’s understandable to want to cover all that lost ground right away. As Rowell writes, “the urge to overwork stems from a well-meaning effort to relieve team members of the extra work they were covering for you, or a desire to demonstrate that even though you were away, your commitment remains high and you’re still valuable to the organisation.” [8]
But overworking “can leave you boomeranging from one extreme to the other, which increases stress and actually undermines your efforts to catch up” [9]. Rowell recommends taking at least a day to recover after your holiday before you start working again so you can mentally and physically prepare for the change in environment.
Strategies for a smooth transition: Allow yourself a catch-up day
Once back in the office, Murden recommends using that first day back as a buffer day in which you don’t schedule any calls or meetings. “Unless it’s an emergency,” she says, “use this day to get organised.” [10]
David Henzel, a member of Forbes’ Young Entrepreneur Council, agrees. He says day one should be solely for catching up and reimbursing yourself in the worklife, with zero meetings. His aim is to be at “inbox zero” aka having zero pending messages by the end of the day. He says “taking this time to catch up on the first day back results in the mental clarity to properly plan out the remainder of the week and provides the momentum to be at your peak performance as soon as possible.” [11]
Strategies for a smooth transition: Exercise healthy boundaries
Another member of the Forbes’ Young Entrepreneur Council, Carry Metkowski, advises making use of one particularly helpful word once you’re back: No. There will be meetings you don’t need to attend, tasks that can wait. Don’t take on more than you can chew. Show some judgement and put the more menial elements of your workload on the backburner.
“While saying “no” can sometimes create a little discord at the moment,” she says, “the extra emotional reserves you’ll have to take care of more important things will be well worth it.” [12]
Strategies for a smooth transition: Reestablish a routine
A lot of the discord that comes in the wake of a holiday stems from the fact that your long-established routine has been disrupted. The key to reintegrating swiftly is to find it again. That means waking up at the usual time, undertaking any external activities you usually partake in, such as exercising or meditating pre- or post-work, and generally committing to your familiar habits.
This disciplined and consistent approach is crucial to regaining focus and efficiency,” says Izabela Lundberg of the Legacy Leaders Institute, “helping you tackle work challenges with renewed energy, passion and success.” [13]
Rest isn’t optional
Perhaps Rowell’s most essential advice is that, should you find yourself in a working environment that discourages time away, or that rewards employees for excessive hours and self-sacrifice while punishing those who take their legally-mandated holiday, you leave.
“This kind of unhealthy work environment will leave you ripe for exhaustion and burnout,” he writes. “If you can’t leave right away, start creating an exit strategy” [14]. You deserve time off. Any company that fails to acknowledge that or correctly honour it isn’t worth your time.
Returning refreshed
While the initial return to work after a holiday can feel jarring, it doesn’t have to be a period of dread. By viewing this time as an opportunity for rejuvenation and renewed focus, both employees and businesses can benefit.
Rest isn’t a luxury, it’s a necessity. Businesses that prioritise employee well-being by encouraging proper time off and fostering a supportive work environment ultimately reap the rewards of a more engaged and productive workforce.
However, the responsibility doesn’t solely lie with employers. Employees must also be proactive in creating a smooth transition. This includes planning ahead, delegating tasks, and prioritising well-being during the first week back. Remember, it’s okay to say “no” to additional workload and to focus on reestablishing a healthy routine.
By following these strategies, we can transform the post-holiday period from a dreaded slump into a time for renewed energy and a successful return to work.
More on Rest
How Much Should You be Working?
Stress Management and Leadership Through Mindfulness
Sources
[3] https://www.fastcompany.com/90199683/theres-a-gender-gap-in-vacation-time-too?
[4] https://www.forbes.com/sites/shelleyzalis/2018/07/24/vacation-is-good-for-you-and-your-company/
[6] https://thenewdaily.com.au/life/wellbeing/2017/01/15/post-holiday-blues
[7] https://www.healthcentral.com/condition/depression/post-holiday-depression
[10] https://www.forbes.com/sites/shelleyzalis/2018/07/24/vacation-is-good-for-you-and-your-company/
Adapting accordingly
Evolutionary change has led chameleons to adjust their mindset and develop unique abilities over millions of years. Some of these unique skills include a talent to change their skin colour instantly in response to predators, to control each eye independently and alter their body shape to communicate with other lizard species. They possess a consistent competence to sense changes in their environment and adjust accordingly.
In our professional world, we know many types of changes can occur. From a people perspective, employees are often asked to be responsive to shifts in their environment, such as being asked to work three days in the office instead of zero days during COVID-19. They may also be tasked with winning a significant business opportunity, such as designing and presenting a presentation to a client. Or they may need to adapt to unexpected structural and strategic changes, such as two functions coming together as part of a merger.
Regardless of the scale of organisational change, people are ultimately at the centre.
Common goals
Change can be a complicated process involving deep rooted behaviours, internal politics, impending risks and numerous benefits. To navigate change effectively, it is critical that teams have support and opportunities to feedback.
From a strategic perspective, leaders should evaluate their engagement process to ensure there is active, timely and effective communication. They should ensure that their teams feel involved and that they actively listen to what their people are saying. As the single source of truth, it is the leadership team’s responsibility to truly understand the core impact(s) any professional change will have on their people before it occurs. By doing this effectively, it sets a tone and builds the foundations for long-term success.
How do leaders ensure that they understand their teams?
Pace, pace, lead
The ‘pace, pace, lead’ framework is a technique used in psychology and performance coaching that originates from Neuro-Linguistic Programming (NLP). Taught within Executive Coaching courses globally, it is an intentional process that helps build trust and gain momentum by establishing rapport with the person or group.
The first step, pace, involves mirroring behaviours, language or communication style to create a sense of familiarity and connection. The second step, also called pace, involves matching their behaviours while introducing new ideas or perspectives. The last step, lead, involves introducing new behaviours or suggestions, which are more likely to be accepted because of the previously established rapport.
The technique ‘pace, pace, lead’ refers to a deliberate process that moves forward at a measured pace. Although it’s not slow, the process can be perceived as gradual. This approach involves carefully building trust and momentum before ultimately leading towards change. This ensures that a clear understanding is established before change occurs.
Summary
During their evolution, chameleons have experienced many failures giving them the skills to learn, adapt and grow through experience. When it comes to small or large organisational change, experience tells us it is critical for leaders to understand their people. The level at which people feel engaged, through active listening, will either build or break trust.
Once a clear understanding is established, organisations, leaders and departments should work towards a common goal of aligning the culture with desired behaviours. Successful change happens when people are given the right environment to develop new skills and the autonomy to be accountable for their responsibilities.
This powerful combination of alignment, advancement, autonomy and accountability provides a genuine competitive advantage resulting in greater individual and collective performance and a significant return on investment.
More on Leadership Coaching
High Impact Leadership Development
More on Autonomy
“Empowering” Workers is More Than a Catchy Phrase
The Workplace Motivation Theory That Works
Organisational Psychology and Motivation
Introduction
According to PwC’s financial wellness survey of 2023, 60% of full-time employees are stressed about their finances. That figure is even worse than it was during the pandemic. The situation is so bad that 47% of employees earning $100,000 or more a year answered that they, too, were stressed about their finances [1].
44% of full-time employees say inflation has had a major or severe impact on their financial situation over the past year, 49% find it difficult to meet household expenses on time each month, and among employees carrying credit card balances, 44% say they struggle to make minimum payments on time each month [2].
The numbers are startling, and not just in the US. In Ireland, 81% of employees say they find money matters stressful [3].
It’s the paradox of money. It makes the world go round, is utterly pivotal to our ability to live with dignity, and yet it’s forever been a taboo. We should not talk about money. It’s poor etiquette socially – perhaps understandable – but even in our work environments the general consensus is that our employer gives us a salary, which every year or so we may renegotiate, but outside of that the topic should be avoided.
But to resuscitate financial health from its current flatline, that needs to change. Research commissioned by Bank of Ireland revealed that 88% of young people learn financial literacy and money management skills predominantly from their parents. Only 57% said they learned from teachers and 25% from online resources [4].
The disadvantages of that are obvious. If one’s parents – who likely were not given a financial education themselves – are not financially literate, their flaws will be passed down.
Ireland’s financial literacy score sits at 54%, well below neighbours and allies like the UK, Germany and Denmark. Troublingly, the 18-34 bracket scored lowest on financial literacy (48%), with over 65s scoring highest (58%) [5]. Sure, part of that boils down to life experience, but it also signals that this is an issue that is not going to resolve itself any time soon.
Cause for concern, too, is that women’s financial literacy scores were almost 10% lower than men, figures which are reflected internationally. A Swedish survey raised the issue of “stereotype threat”, meaning that as a result of women believing that their gender was worse at handling money, they in turn made worse financial decisions. The survey showed that amongst girls aged 13 to 15, financial literacy deteriorated as stereotype strength increased [6]. It takes active steps to reverse the trend.
Financial wellness programmes
Liz Davidson, Financial Finesse founder and CEO, says that, “Employee financial stress is at the greatest level it’s been since the Great Recession” [7].
She suggests the only way to combat this is for companies to adopt employer-sponsored financial wellness programmes. They’re no longer simply nice to have, she says. They’ve become an “imperative.”
The BrightPlan Wellness Survey of 2022 found that financial wellness programmes were now the number one most-wanted benefit among employees, more so than mental health initiatives or time-off programming [8].
And yet, a Transamerica Institute report found that while 77% of workers view financial wellness programmes as an important benefit, only 28% of employers offer them [9].
One positive is that the stigma around such programmes seems to be dampening. PwC notes that when it started its annual financial wellness survey in 2012, only 51% of workers whose employer offered financial wellness services had used them. By the 2023 survey that number had risen to 68% [10]. Just 33% of employees now find it embarrassing to ask for guidance or advice regarding their finances, compared with 42% in 2019 [11].
Among workers who have even attempted to estimate how much money they will need to save in order to retire, a recent report found that 45% simply “guessed” the amount and only 29% have a written plan for how to achieve it [12]. The situation can’t be fixed fast enough.
How to approach financial wellness programmes
Elements of financial education that companies should be focusing on include budget and savings planning, how to create attainable financial goals, property advice and mortgage options, retirement projections and planning, investment education and debt management [13].
Billy Hensley, CEO of The National Endowment for Financial Education (NEFE), argues that it is pivotal employers offer a “personal finance ecosystem” [14].
“Single, tactical solutions cannot work by themselves,” he says. “If it was just about more money or more education, we would’ve solved the problem already.”
The ecosystem approach means that rather than adopting a blanket approach for all employees, employers take the time to consider each of their employees’ unique circumstances – their financial knowledge, cultural influences, socioeconomic status, mindset, overall physical health, where they live etc. – and then tailor the advice accordingly.
Speaking to the Irish Times, Stephen McCormack, senior director and head of financial planning at WTW, agrees. “It can be far more beneficial for employers to provide one-to-one advice sessions with an external adviser to allow employees to discuss their personal situation, confidentially, to get to the core of their financial distress,” he says [15].
“This will enable them to identify the issues, put a plan in place, specific to their needs and objectives, and monitor the progress on an ongoing basis.”
TIAA’s financial wellness survey from 2022 found that employees who have participated in an employer financial wellness programme are twice as likely to have a high financial-wellness rating than those who are not offered the resources or do not participate [16].
54% or participants of such programmes were confident they would retire when they want, compared to 32% of nonparticipants. While 50% of participants were confident they will not run out of money, compared to 29% of nonparticipants [17].
The benefits for employees, then, are stark. But employers, too, gain massively from ensuring their staff are financially literate.
Employer benefits
According to a 2018 Financial Health Network Survey, almost three-quarters of workers with high financial stress said it distracts them at work [18].
56% of employees who suffer distraction at work due to financial stress say they spend three or more work hours a week dealing with or thinking about issues related to their personal finances [19].
A TIAA Institute and the Global Financial Literacy Excellence Center (GFLEC) report from 2023 found similar results, saying that employees spend an average of eight hours a week dealing with financial issues, with four of those hours occurring at work [20].
This level of stress and distraction costs employers money.
A 2023 study in the Journal of Financial Literacy and Wellbeing found that a well-designed financial education programme can remove at least one hour per week of worry and financial distress for each employee who participates in that programme [21]. Assuming a minimum wage of $15 per hour, at a company with 30 minimum-wage employees, a good programme can recover at least $22,500 of value per year [22].
“Organisations have every reason to want their employees to be financially aware. A well designed employee financial wellness programme can help employers reduce a key barrier to productivity and motivation in the workplace,” says McCormack [23].
Not only does keeping employees financially literate eliminate a key distraction and increase staff productivity, but it aids massively with retention.
Only 54% of employees who are financially stressed feel there is a promising future for them at their employer, compared to 69% of employees who are not stressed about their finances. Financially stressed employees are also twice as likely to be looking for a new job as their unstressed colleagues (36% versus 18%). And 73% of financially stressed employees say they would be attracted to another employer that cares more about their financial well-being [24].
The aforementioned Financial Health Network Survey from 2018 found that 60% of people said they’d be more likely to stay at a job if their employer offered financial-wellness benefits [25]. Such initiatives shouldn’t be viewed as “charity” from an employer standpoint, says Annamaria Lusardi, a senior fellow at the Stanford Institute for Economic Policy Research (SIEPR) and founder and academic director of GFLEC. Instead, they should view it as a way to “retain and attract workers and make them more financially healthy and productive” [26].
Employers are often reluctant to engage in such initiatives because they’re viewing these programmes purely through the lens of taking cash out the tin. But the return on investment is clear. On average, employee benefits cost employers between 30–40% of the average worker’s base salary [27]. It’s worth investing the time and money to make sure that cost is contributing to your business.
Moving forward
Money is an awkward subject. The adopted wisdom is that it’s best not to talk about it. We inherit certain financial skills from our parents and just have to hope that we’re lucky enough that that will prove sufficient. But it’s not. Employers have an obligation to ensure their staff are financially literate. That means teaching them about key areas in which they can make improvements, such as budget and savings planning, financial goals, property advice, retirement projections, investment education and debt management – and tailoring that advice according to each individual’s circumstances. Not only is it the right thing to do, but it offers benefits to the employer in terms of staff productivity and garnering company loyalty.
The stigma around money is shifting. It’s time for employers to play their part in helping the pendulum swing.
More on Employer Benefits
Addressing High Housing Costs in Ireland: Strategies for Employers
How Much Should You be Working?
References
[7] https://hbr.org/2024/01/its-time-to-prioritize-employees-financial-health?ab=HP-hero-featured-text-1
[12] https://hbr.org/2024/01/its-time-to-prioritize-employees-financial-health?ab=HP-hero-featured-text-1
[14] https://hbr.org/2024/01/its-time-to-prioritize-employees-financial-health?ab=HP-hero-featured-text-1
[20] https://hbr.org/2024/01/its-time-to-prioritize-employees-financial-health?ab=HP-hero-featured-text-1
[21] https://www.sciencedirect.com/science/article/pii/S0278425423000212
[22] https://hbr.org/2024/01/its-time-to-prioritize-employees-financial-health?ab=HP-hero-featured-text-1
[26] https://hbr.org/2024/01/its-time-to-prioritize-employees-financial-health?ab=HP-hero-featured-text-1
[27] https://hbr.org/2024/01/its-time-to-prioritize-employees-financial-health?ab=HP-hero-featured-text-1
Introduction
January is not only a reset of the calendar. For many of us, it is a reset of our goals and ambitions. We look back on what we achieved in the past year, what we want to achieve this year, and enter a period of reflection.
We evaluate our progress – professionally, personally – and in a flurry of excitement and/or existential panic, commit ourselves to the task of betterment. We scribble down goals for the year ahead. We’re going to learn French, and maybe Spanish too. We’re going to lose not just that Christmas weight but a further stone on top of it. We’re going to get the promotion, travel to that beach paradise, eat healthier, take more photos, and just generally, finally become the rich/pretty/happy/smart/loved/well-read version of ourselves we were always meant to be.
Until after about three days of pursuing this idealised final form, we collapse in a heap and decide Netflix and a takeaway sounds like a better idea.
Like Icarus, we flew too close to the sun, got burned, and crashed back to Earth before the New Year’s hangover had even fully evacuated our system. Because the problem with “New year, new me” is it can only ever be half-true.
Which isn’t to say we shouldn’t pursue new goals – we can always strive for more. Rather that we should do so intelligently. Setting objectives is not just doable but recommended. It helps keep us on track, steadies our progress, and offers clarity and motivation.
There’s a story educators often cite that backs this up.
Many years ago, a survey was taken of students in their senior year at Yale University. Researchers asked the students if they had any goals for their future, and if any of them had written these goals down. 3% had. The rest, in much more relatable fashion, had not. Twenty years later, the researchers tracked down this same group of students and found that the 3% who had written down their goals had out-achieved their peers who hadn’t done so financially and professionally, while also being happier and more self-confident [1].
Now, does this story demonstrate the undeniable power of writing down one’s goals and prove that if you wish to be successful that there is a sure-fire way to do so? No, because the story is almost certainly untrue. A low-rent parable that gets wheeled out by educators all the same because, like all tales that pass into folklore, the heart of its lie speaks to an accepted truth: setting goals leads to progress.
While that specific story may be false, studies have shown that appropriate goal setting, along with timely and specific feedback, can lead to higher achievement, better performance, a high level of self-efficacy, and self-regulation [2]. And yet, when asked “Were you taught how to set goals in school?” 85% of individuals responded “no” [3].
In other words, we believe in the power of setting goals, we just have no idea how to do it.
The courage to want
Writing in Forbes, Life Performance Coach Julien Fortuit notes that, “Fear is probably the most common impediment to goal setting, even though many people may not admit it. Fear of failure – that you’ll set a goal, but not be able to achieve it, and suffer embarrassment, shame and disappointment in the process – underlies so much foot-dragging about setting and achieving goals” [4].
Fortuit acknowledges, too, that oftentimes we don’t just fear failure, but success. Applying for that new job, promotion etc. is often accompanied by a sudden spike of dread: What if I actually get this? Will I be able to do it? What will it mean for my life? What if I don’t like it? Is this the right move? It suddenly seems so much easier to put our dreams back in our pocket and settle for what we have.
Some people even fear speaking their goals out loud, or fear admitting to having any in the first place – they deny themselves the evaluation required to know what it is that they want. Fortuit writes that, “Many people are afraid of setting goals “just” for themselves. They fall into a common mental trap of believing that the desire for attainment or advancement is inherently narcissistic, and that settling and being content where you are is somehow ideal” [5].
All these impediments are self-created: fear of failure, of success, of daring to dream in the first place. And while feeling these things may be totally normal, allowing them to stop you from pursuing a goal is foolhardy.
So, before setting out toward your goal, first examine yourself and decide what it is you really want – to work in a new sphere? A new country? To earn more money? To start your own business? Once you’ve taken the requisite time to self-analyse and understand where it is you want to be, only then can you take the first steps to getting there.
Enacting objectives
Regardless of the goal, the consensus is that if you wish to achieve it, you must make it SMART. Smart goals are Specific, Measurable, Achievable, Relevant, and Time-Bound.
Specificity is crucial. “I want to be a better employee” means nothing. “I want my sales record this year to improve by 15% compared with last year” is SMART. It is one clear objective, with a measurable area of improvement, a challenging but achievable target and a clear timeframe.
The primary issues that hold back goals are that the end desire is either too vague or too ambitious. Give yourself something tangible to focus on achieving – it doesn’t have to be an outcome, like the 15% example, rather a process. Say you want to spend 10 minutes a day studying a language rather than saying “I want to be fluent in Korean”, or “I want to run twice a week” rather than “I want to do a marathon.”
For goals that take place over a long period of time, it can be a good idea to set smaller objectives in between so that you can keep yourself on track. For example, if you want to read 30 books this year, it can be all too easy to fall behind early while convincing yourself that things will improve later in the year – that future you will pick up the slack. Except inevitably, as the first firework of December 31st fizzes into the sky, future you is left remonstrating past you for putting them under so much pressure and forcing them to end the year feeling like a failure.
A better approach would be to measure your progress by ensuring you’ve read ten by the end of April, twenty by the end of August etc. Not only does this make the goal more measurable and less daunting, but you get bursts of satisfaction through the year every time you see you’re on track.
Worth trying, too, is making your resolutions public. You will feel – rightly or wrongly – a level of scrutiny as to your progress. It is only human nature. Of course none of us want to feel like failures. But far more terrifying is the prospect of everyone else seeing us as one.
Additionally, ensure that you’ve connected a “why” to each of your ambitions. If our brain is able to link the efforts required to achieve this goal with a tangible, meaningful reward in the future, it is more likely to find the necessary motivation when things get tough. Wanting to hit sales targets so you can earn commission is fine. Wanting to hit sales targets so you can earn commission that you’re putting towards a deposit for a house for your family is better. Of course, it need not be so primal. Wanting to buy those new shoes, to feel more confident, to renew your season ticket or shop at the posh supermarket – whatever motivates you.
The benefits aren’t just in achieving goals but also in what having goals does to our psyche. A study amongst pulpwood producers in the southern United States showed that not only did productivity improve drastically amongst workers once goals were introduced, but that “within the week, employee attendance soared relative to attendance in those crews who were [not set goals]. Why? Because the psychological outcomes of setting and attaining high goals include enhanced task interest, pride in performance, a heightened sense of personal effectiveness, and, in most cases, many practical life benefits such as better jobs and higher pay” [7].
Habits
If you want to make long-term improvements, make habits your best friend.
James Clear’s Atomic Habits is the obvious guide for bringing habits into your life. He shows how micro-changes – getting 1% better every day – make all the difference. Habits take time to form, and there’s no shortcut to making them stick. It takes consistency, showing up every day. In order to do that, Clear suggests starting with a habit that is small and attainable. If you set yourself the target of running 10k three times a week, you may have a great first day, a great first week even, but sooner or later you’re going to struggle to keep it up (unless you’re built like The Hardest Geezer, in which case good for you). Clear’s advice for exercise isn’t about setting targets for runs or lifts, it’s about laying out your gym clothes before you go to bed or leaving your gym bag by the door. Truly the little things.
Writing in Harvard Business Review, Sabina Nawaz, a global CEO coach for a number of Fortune 500 corporations, says the same. “It usually takes my workshop participants between three and eight tries before they come up with something sufficiently small enough to be considered a micro habit.”
“When I tell them reading for an hour each night is too large, they then change to reading for 45 minutes, then 30 minutes, and so on. Finally, I tell them, “You will know you’ve truly reached the level of a micro habit, when you say, ‘That’s so ridiculously small, it’s not worth doing’”” [8].
It may sound ridiculous, condescending even, to say “start reading one page a night” or “start doing one pushup a day”, but building consistency is far more important than having an impressive week or month then falling off the wagon. That may mean sticking with your teeny-tiny habit longer than you’d like to, even if you think you’re capable of more. “You’ve stuck with your original micro habit long enough when you feel bored with it for at least two weeks in a row,” Nawaz says. “Then increase it only by about 10%.”
Effective goals
Every year, all over the world, people set themselves goals they have no chance of achieving. It’s a double negative – not only are they not fulfilling the goal, but they’re left feeling like failures because they fell short. To make effective goals, one must first self-evaluate and decide what you really want. You have to know where you’re going before figuring out how to get there. Once you’re set on the destination, in order to make your goals achievable, make sure they’re SMART, making use of habits, linked to a clear “why”, and focused on processes rather than just outcomes.
Resolutions don’t have to be distant dreams we’ll never achieve; they can be powerful motivators that set us on the path to success. So put last year’s missed targets behind you and set yourself goals you can actually reach and truly want to.
More on Goal Setting
How to Achieve Peak Performance
New Year’s Resolutions: How to Make Them Useful
More on Habits
Why Achievement Doesn’t Guarantee Happiness
Boosting personal and organisational performance in the digital age (Podcast)
References
[2] https://www.jstor.org/stable/41684067?read-now=1#page_scan_tab_contents
[3] https://www.jstor.org/stable/41684067?read-now=1#page_scan_tab_contents
[6] https://www.jstor.org/stable/4166132?read-now=1#page_scan_tab_contents
[7] https://hbr.org/2020/01/to-achieve-big-goals-start-with-small-habits
[8] https://hbr.org/2020/01/to-achieve-big-goals-start-with-small-habits
Introduction
Survivorship bias is a subtle yet pervasive cognitive oversight that significantly impacts our understanding of success and failure. Often going unnoticed, it affects various areas, from entrepreneurial ventures and the entertainment industry to our everyday decisions and scientific research methodologies.
This bias emerges from an emphasis on the winners—those who have surmounted the odds—while inadvertently neglecting those who did not achieve the same success. Success stories are highlighted and celebrated, leading to a skewed perception that such outcomes are more common than they are. Conversely, the experiences of those who fail are frequently overlooked, leaving a gap in the narrative of what truly contributes to achievement or failure.
In business, for instance, we hear about the few start-ups that evolve into tech giants but seldom about the many that don’t survive their early years. The spotlight shines on celebrities and star performers in entertainment while numerous struggling artists remain unseen. This selective visibility can mislead aspiring individuals about the realities and challenges of success.
Recognising survivorship bias is crucial for a more accurate and balanced understanding of the factors leading to success. It encourages a comprehensive analysis of both successful and unsuccessful cases, promoting a more realistic approach to the probabilities and potential outcomes in any field.
Survivorship Bias: The Hidden Half of Success Stories
Survivorship bias casts a long shadow over our collective narrative, favouring stories of victory. The media celebrates tales of success, featuring business leaders, cultural icons, and renowned authors. This prominence of success stories overshadows the numerous trials and errors that either lead to victory or result in obscurity. Such selective storytelling creates a skewed reality where only victors command attention, while the majority who don’t reach such heights are forgotten.
In technological innovation, for example, the few smartphone models that dominate the market and public consciousness overshadow the numerous attempts that failed to find a market or fell short on functionality. We frequently celebrate the end products of innovation, from ground-breaking apps to transformative gadgets, while neglecting the graveyard of ideas and prototypes that did not survive the market’s rigours.
In sports, every champion on a podium represents the peak of a vast pyramid of athletes who trained with fervour and dedication but did not reach the summit of elite recognition. The winners’ spotlight often ignores the dedication and sacrifice of those who compete valiantly yet do not secure the medals and accolades.
In “Fooled By Randomness,” Nassim Nicholas Taleb illustrates how our understanding is limited by what we see, causing us to neglect the fuller picture that includes the ‘invisible’ majority contributing to the narrative of progress and competition without acknowledgement. In science, for every celebrated discovery published in journals, there are numerous unreported experiments and hypotheses that were essential stepping stones despite not achieving the desired result. These instances are critical to advancing knowledge, yet they remain unrecognised.
These examples give us a clearer picture of survivorship bias and its pervasive impact across various sectors. They remind us that what is celebrated and visible is just the tip of the iceberg, with much remaining unseen beneath the surface of success.
The allure of visible success, such as the glamorised lives of movie stars, success stories of YouTube personalities, and triumphs of Twitch streamers, fosters a false optimism. This disparity between visible successes and the invisible majority creates a misleading perception that fame and fortune are more attainable than they are. As media consumers, we often receive a distorted image of reality, where the pinnacle of success seems within reach for all.
However, the reality is much more sobering. Many businesses do not survive their initial years, most actors and artists grapple with financial instability, and many digital content creators never attain a liveable income from their efforts. By recognising the prevalence of survivorship bias, we can make more informed decisions, avoiding the trap of chasing an illusory model of success. An awareness of the numerous untold stories of struggle and perseverance grants us a more balanced understanding and fosters empathy for those enduring the brunt of their unpublicised defeats.
Survivorship bias significantly affects how we perceive and strive for success. By acknowledging this bias, we can temper our expectations and decisions with a healthy dose of reality, leading to a more nuanced approach to our ambitions. Appreciating the full landscape of success and failure is crucial, recognising that for every story of triumph, countless others go unheard yet equally deserve our attention and respect.
Survivorship Bias: Unveiling the Unseen in History and Decision-Making
The concept of survivorship bias finds profound lessons in history and contemporary settings alike, demonstrating its impact on our interpretations and decision-making processes.
One of the most instructive case studies comes from WWII, where mathematician Abraham Wald was tasked with better armouring American bombers. The common approach was reinforcing the areas with the most damage on returning planes. However, Wald’s counterintuitive insight was to bolster the undamaged areas instead, understanding that planes hit in those areas were not returning and thus were not represented in the data. This critical perspective shift exemplifies the essence of survivorship bias: the danger of only considering the immediately visible evidence while ignoring what we cannot see.
In the realm of consumer feedback, online reviews often present a distorted view of reality. Products and books, for example, typically garner reviews from the most passionate consumers—either extremely satisfied or dissatisfied customers—while the moderate and perhaps more common experiences go unreported. This distortion can significantly skew our perception of a product’s quality or a book’s merit, leading to an imbalanced view that does not reflect the true diversity of customer experiences. It underscores the importance of seeking comprehensive information that includes the silent majority of experiences to arrive at a more accurate evaluation.
The influence of survivorship bias extends into the professional world as well, particularly in how careers and businesses are portrayed in the media. For every actor who gains stardom or every CEO who catapults a start-up to international success, there are countless individuals whose efforts do not result in such widely recognised achievements. Though often overlooked, their stories are integral to the fabric of industries and economies. This bias leads to a disproportionate emphasis on extraordinary success stories, while the more common but less sensational experiences of striving and often not succeeding are neglected. This can create unrealistic expectations for those entering the workforce or launching new ventures, as they may not be fully aware of the high frequency of unpublicised setbacks inherent in these journeys.
By understanding the nuances of survivorship bias through these case studies, we can better appreciate the full scope of experiences behind our world’s successes and failures. Acknowledging the entirety of this spectrum is crucial for making more informed decisions, whether in historical analysis, consumer behaviour, or pursuing careers and building businesses. The unheralded stories—the majority that do not find their way into the limelight—offer perhaps the most authentic and instructive insights for those willing to look beyond the surface.
Combatting Survivorship Bias
In navigating the waters of success and failure, a more grounded approach requires the deliberate search for a wider range of narratives, including those that detail unsuccessful ventures. Such stories are often untold but offer critical insights into the realistic probabilities of achieving success. To foster a more balanced viewpoint, one should actively engage in pursuits with the understanding that failure is not a definitive end but a potential source of invaluable lessons. This mindset allows for a sustainable approach to risk-taking, where even the losses are accounted for as part of the learning curve, thereby informing future decisions.
Reflecting on the wisdom taken from Abraham Wald’s approach during WWII, our assessments must expand to include the factors that are not immediately apparent—the unseen efforts and unreported trials. A comprehensive understanding of a situation often lies beyond the visible successes in the quiet persistence and unnoticed trials that do not reach the forefront of public consciousness.
Equally important is the analysis of base rates, which are the statistical probabilities of success within any given domain. Such data offers a sobering counterbalance to the often anecdotal success stories, grounding our expectations and goals in reality rather than the exception.
Lastly, the allure of outliers—those remarkable tales of success against formidable odds—while inspiring can also lead to a skewed perception of reality. Recognising that these are the exceptions rather than the norm is crucial in maintaining a realistic approach to our aspirations. Through a conscientious recognition of the full gamut of experiences and outcomes, one can avoid the pitfalls of survivorship bias and make more informed decisions in the face of uncertainty.
In sum, we can approach our endeavours with well-informed and grounded wisdom by seeking out the full spectrum of stories, embracing the instructive nature of setbacks, considering the unseen and the unreported, analysing real-world probabilities, and resisting the misleading charm of exceptional success.
Conclusion
Survivorship bias significantly influences our view of the world. By recognising and accounting for this bias, we can approach our goals, dreams, and decisions with a more grounded and realistic perspective. This awareness enhances our capacity for informed decision-making in our personal and professional lives and challenges us to re-evaluate our assumptions and look beyond the surface of success stories.
More on Bias
Refining Performance Assessments: Reducing Recency Bias for Superior Evaluations
Mastering Decisions: The Strategic Edge of Red Teaming in a Biased World
Charlie Munger’s Mind Games: How Psychology Drives Business Success
Introduction
Born in Kildare in 1932, Charles Handy is an Irish author who specialises in Organisational Behaviour and Management. In 1994 he wrote a book called “The Age of Paradox”. In chapter 3 entitled ‘The Road to Davy’s Bar’, he tells a short story about asking for directions to a bar in Wicklow Mountain. He connects this story to performance in any context and two s-shaped sigmoid curves. Generally, a sigmoid curve has 4 points: inception, growth, maturity, and decline.
It’s interesting to note that one of the most debated chapters in executive education classes around the world is the concept of “what got you here won’t get you there”. This simple but powerful idea, as argued by Handy, suggests that while building the first curve of success, it’s important to start thinking about the second curve. If you stick to the same old path, you might miss out on the road to the future. It’s a thought-provoking concept that challenges us to think beyond our current circumstances and envision a better future.
The 2nd s-curve begins somewhere between the growth and maturity phases of our life, business or industry. It is important to innovate with new success factors before experiencing a decline in growth.
The Christmas and holiday season offers a great chance to break free from the everyday routine of life. It’s an opportunity to spend more quality time with friends and family and take a break from weekly project huddles or work commitments, allowing us to recharge our mental and physical batteries.
Regardless of how you spend this time, it is an important period for refreshing our minds, assessing the opportunities available to us, and planning how we can achieve our full potential.
More on New Year Preparation
Assessing Your Year’s Progress
New Year’s Resolutions: How to Make Them Useful
Introduction
It’s that time of year where history’s most famous CEO steps up to deliver on his annual project. Santa Claus is a cultural behemoth. Hardly a soul on Earth is unaware of his specific approach to leadership, replete with elves, reindeer, sleighs and coal.
But is Santa a good leader? Where does he impress and where could he improve? In what areas can we learn from Santa and in what areas could he perhaps do with updating his approach?
Santa delivers
The primary positive of Santa’s leadership, one that many a budding CEO could learn from, is that he sets clear goals and always hits his deadline.
Every year, Santa has the job of delivering presents to every child in the world. And every year, he does it. Now, there may be questions regarding his timing. It would appear that Santa suffers from the same tendency to leave his major tasks to the last minute as many of us. He has a whole year to deliver on his project and yet, without fail, does not get around to distribution until Christmas Eve.
That said, Santa never misses a deadline. Every Christmas morning, children the world over awaken to their new presents under the tree. The truth is that some of us thrive under the pressure of an impending deadline. One might have thought that after centuries of the same deliverable, Santa would learn his lesson and get his act together, delivering methodically throughout the year rather than needing to unload everything in one final dump. However, it would appear that no matter how many times he’s done it, Santa needs to feel that extra spike of pressure as the deadline looms ever closer in order to get the job done. It’s a trait that for many of us is a little too relatable.
Santa gets stuck in
Too often CEOs are happy to let their team do all the work, only to step in and take the credit when all is done (or point the finger of blame if things go wrong). While Santa is guilty of letting his elves undertake the brunt of the work through the year (arguably just the result of good delegation), when it comes time to deliver, Santa is there front and centre, riding the sleigh and taking responsibility. He could no doubt entrust one of the elves with this responsibility or even outsource the task to a third-party operation – I’m sure Tony McKCoy, Lewis Hamilton or any other famed steerer of steed or cart would love the opportunity – but no. Santa is there, getting his hands dirty when it matters most.
That said, Santa’s decision to lead the line on delivery night does speak to one of his baser traits: taking all the credit.
As noted, the elves are slaving away all year to ensure everything is in order for the big man to push things over the line on the day. But who is it that gets all the focus? Santa, of course. The media pour their attention on him in large part due to his clever branding (red suit, large beard, an air of eccentricity). But would it kill him once in a while to acknowledge the role his elves and reindeer play in providing a platform for his success? Seemingly, a touch of humility is too much to ask; he’d rather bask in all the glory without giving credit to his team.
Good leaders know that they are only as good as their team and that acknowledging their staff’s hard work goes a long way.
Clear communication
As well as consistently hitting his deadline, Santa is always crystal clear on his brief, both to staff and the wider public. His staff know that their role is to deliver presents to every child in the world by Christmas Day. Children know that he’s making a list and checking it twice, and that good behaviour will land them on the nice list, while naughty behaviour…well, it doesn’t bear thinking about.
Of course, critics could well point to Santa’s naughty and nice list as an example of poor leadership, attempting to incentivise through fear. Placing a lump of coal in the stocking of children he deems unworthy certainly feels draconian by modern standards. That said, his strongman leadership tends to yield results, with far more nice kids than naughty and very little coal doled out in earnest.
A loyal workforce
Despite not dispersing credit as generously as he could, Santa has cultivated a loyal workforce. His elves and reindeer seem to stick with him, with very little turnover of staff. That suggests that Santa has made Lapland an enjoyable place to work, probably with an enviable work-life balance, decent salary progression and maybe even a ping pong table.
However, it must be noted that there’s very little room for growth within Santa’s organisation. He’s the top dog and everyone under him seems to be working in a fixed position, with no higher rung of the ladder they can climb to by playing their cards right. Perhaps should he one day choose to retire, we may witness a Succession-esque bid for power from a series of his most ruthless elves, but for now the ceiling for career progression in Lapland seems low and unbending.
Lack of diversity
The one obvious example of a promotion in Santa’s operation is Rudolph (the red nosed reindeer, for those in doubt). However, his upgrading to the front of the sleigh seems if anything to be the exception that proves the rule, and ultimately to highlight another of Santa’s managerial deficiencies: a lack of diversity.
Prior to his do-or-die promotion, reports indicate that Rudolph was brutally mocked for the colour and glowiness of his nose. It would appear that Santa has cultivated a toxic work environment with a lack of diversity in personnel and thought. After all, the bulk of the legwork is conducted solely by elves. Perhaps by opening up to other creatures – goblins, ghouls, influencers etc. – we might see a greater plurality of thought amongst Santa’s workforce, rather than the hegemonic current state of play.
Innovation
Santa has shown a willingness to embrace modernity in his gift-giving, always up to speed with modern trends. That spirit of innovation, though, is seriously lacking when it comes to his process.
As any good business knows, innovation is about more than just product and output, it’s about the process by which outcomes are achieved. How can we streamline our operation so as to ensure maximum productivity and staff satisfaction?
Santa’s methods of delivery have served him well, and there is an argument to be made that if it ain’t broke, don’t fix it. That said, perhaps, in a changing world, there is a more operationally efficient way to achieve his goals than flying a sleigh through the sky at night with nothing but a glowing nose for guidance and likely no seatbelts. Not to mention the physical strain he places on his reindeer, who are probably only one trip to PETA away from putting an end to this operation for good. Even tried and tested methods need updating every once in a while.
Accountability
As previously noted, Santa is more than happy to accept plaudits for the operation without sufficiently doling out credit to his staff. But when things go wrong, where is he?
By which I mean, when I was ten years-old, all I wanted for Christmas was the new David Bowie album. And yet, when Christmas Day came around, it was starkly lacking. In its place was a jumper and a book. While these days a jumper and book would be my ideal gifts, back then such presents bordered on a declaration of war.
And yet, when I wanted to raise my concerns with Santa regarding his dismissive attitude to the carefully curated wish list I sent him prior to the big day, he was unreachable. Good leaders are accountable for the good and bad of their operation. In this regard, Santa falls short, and ten year-old me is yet to forgive him.
In summary
If you’re running a global delivery service built on the backs of what arguably constitutes slave labour (here’s looking at you, Jeff Bezos), then Santa is and forever will be the model to follow. However, for a normal CEO, more humility, accountability, championing of diversity, and coal-free incentivisation methods may be required.
Introduction
The year is drawing to a close. Christmas lights line the façades of urban architecture while the dulcet tones of Mariah Carey and slurred poetry of the late, great Shane MacGowan offer a familiar festive soundtrack. It’s a time for reflection, personal and professional.
As we reflect, we can’t help but be caught up in questions as to how our year has gone – have we achieved everything we set out to? Where did we shine? Where did we fall short? How can we know if we’re progressing?
Self-evaluation
As with all self-reflection, such questions are difficult to answer objectively. Still, it’s worth taking the time to assess your year as measuredly as you are able to. Coach Harriet Minter says that conducting your own end of year review is only useful if you can walk the line between self-castigation and self-congratulation [1].
Of course, if you set goals at the turn of the previous year, your results will be easier to measure. You can roll through your objectives and see which you achieved. For those you didn’t, ask why, though not in a punitive sense. Rather, look at the aim and assess whether there is something you can do next year to ensure you reach this target or whether fulfilling it was actually out of your control.
It’s perfectly possible that your goals changed throughout the year and so by December you were no longer pursuing certain aims. As John Maynard Keynes said, “When the facts change, I change my mind” [2]. It’s useful to remember when setting goals that we need not be slaves to them throughout the year. Life and work are at the mercy of constant fluctuations and external shifts. There is nothing to be gained by remaining fixed on a target that has lost its relevance.
If you struggle with self-assessment – either finding yourself too generous or too harsh in your appraisal – Minter suggests you picture a great boss and try to think what they would say [3]. Good leaders tend to know how to motivate their employees and celebrate their strengths while also providing constructive feedback as to how they can improve going forwards. Mimic that and you’re halfway there.
Measuring progress, not achievements
In The Desire Map: A Guide to Creating Goals with Soul, author Danielle LaPorte says that we set ourselves goals in order to achieve a feeling we want [4]. For example, if we seek a promotion, as well as the fiscal benefits it affords, we are also hoping to achieve a feeling of pride that our work is being recognised. When assessing our end-of-year achievements, it’s important to focus on the latter as much as the former. Perhaps you did not get the promotion, the pay rise, the new office, but did you get the feeling that you are making progress? Did you make steps in the right direction? This, in itself, can be worth celebrating.
That’s not to say one should simply accept being overlooked, especially if you’re quite certain that your efforts and achievements throughout the year are deserving of more respect than they’ve been shown. If that’s the case, vocalise it (in a courteous, professional manner, of course, open to hearing why your employer potentially disagrees).
But for the years in which you outwardly achieve little, have none of the obvious markers of progress to show for your efforts, it’s still worth giving yourself credit for effort and achievement. That can sound condescending, of course, like draping a participation medal around your own neck, but it is valuable. We all have years that don’t quite go our way. It could be a matter of timing, we could be part of a team that doesn’t suit us, we could be dealing with something in our personal life that bleeds into our work performance – these things happen. So long as you can look back at your performance and say, “Well, I gave it all I could, but this time things didn’t go my way”, that’s enough.
If you conclude that, in fact, you didn’t give your all, it might be worth asking why not and what steps you can take next year to improve.
External analysis
Sometimes the end of the year brings about not just self-analysis but external evaluation too. Some companies choose to do this at the end of the fiscal year, others the end of the calendar year, others around employee contracts. Regardless, performance reviews can be nerve wracking for even the best of employees. Often they are seen as something to survive, with employees and employers alike thinking “how can I get through this?” for another year, rather than viewing them as the opportunities for growth they can be if handled properly.
A 2018 McKinsey survey found that the majority of CEOs don’t find the appraisal process in their companies helpful when it comes to identifying top performers, while more than half of employees don’t believe that their managers get performance degrees right [5]. Similarly, a Gallup study found that only one in five employees agree that their company’s performance practices motivate them [6].
The lack of benefits performance reviews generally afford paired with the anxiety they tend to foster could suggest that the practice is overdue a place on the scrap pile. But amongst firms who tried to rid themselves of such measures, a separate McKinsey study found that when “organisations scrapped the performance ratings, they found a need for a form of annual documented administrative evaluation to make employment decisions, such as promotions and raises. To address this need, these organisations often implemented ‘ghost’ ratings—a system of evaluation that is, ultimately, just another annual performance rating” [7].
Essentially, then, the question isn’t “should we get rid of performance reviews?” Rather, it’s “how can we make them more effective, for employer and employee alike?”
Making the most of performance reviews
Writing in Forbes, Chris Lee, President of Ventureblick, says that in his experience employees spend too much time in performance reviews bragging about their achievements and strengths. Instead of embarking on a self-promotion sales initiative, he recommends employees list what they consider to be their weaknesses as well as offering proactive proposals for areas of development.
“The trick here,” he writes, “is that you are setting yourself up to demonstrate your self-awareness and readiness for further career advancement” [8]. In practice, that means that rather than saying, “I deserve to be given a leadership position for X, Y and Z,” you say, “I have developed strong project management skills in the past years, but I’m still lacking people management experience. I’d like to develop this facet and lead a small team.”
Taking this approach shows a level of self-awareness, proves you acknowledge your weaknesses (rather than grifting and pretending everything you touch turns to gold), and demonstrates your capacity for taking the initiative to improve an area of weakness.
Equally, Lee writes, you must listen to your manager’s feedback and not get defensive. As well as showing maturity and level-headedness (both valuable), you’re also making your boss’s life easier. “A boss I respected highly once told me that performance reviews are psychologically stressful for him,” Lee says. Many of his staff would come in ready for “bruising battle,” determined to show their worth and fight their corner.
While one should always be willing to stick up for oneself, an inability to take constructive criticism is a major red flag for any employer. The point of a performance review is to learn what you’re doing well, what you could do better, and how to do so next time. If all you’re after from your appraisal is a stream of praise, the implication is you think there’s nowhere you can improve, which is not the case for any of us. Take the feedback, listen to it and respond accordingly. If you really think it’s unfair, perhaps think about it further before arranging a follow-up meeting with your boss where you can explain why you disagree, and then learn whether they had indeed overlooked some of your achievements or you really are at odds over your performance.
For employers, it’s important to remember that for a lot of your staff this is the one opportunity they get to truly hear what you think of their performance. Give the moment the respect it deserves.
When giving feedback, be specific. Writing in Harvard Business Review, Frank V. Cespedes, a senior lecturer at Harvard Business School and the author of Sales Management That Works: How to Sell in a World That Never Stops Changing, observes that, “Too much performance feedback is of the “do good and avoid evil” variety. That may sound harmless, but overly general feedback increases feelings of defensiveness, rather than openness to behaviour change, because it involves broad judgments and invites counterpunching rather than discussion” [9].
Giving specific feedback – i.e. you didn’t mention X, Y and Z in this presentation, or you kept interrupting a client during a meeting – “makes it easier to receive negative comments and take corrective action because both manager and employee can now concentrate on elements that can be improved” [10].
The most conclusive area in which performance reviews often fall short is in setting employees up with a clear plan moving forward. Inbuilt to the “let’s just get through this” mentality is the idea that once the review is over, that’s it for another year. Instead, Cespedes argues, “A review is incomplete without a discussion of next steps in which both parties take appropriate responsibility for change options” [11]. He goes on to say that the bulk of this responsibility rests with the manager. In what areas do they want to see progress from their employees in the coming months and year? How do they want to bring those changes about? Are there courses they can offer? Or mentorship sessions? More regular feedback so they can check the employee is making steps in the right direction?
Even something as simple as a regular reminder of the goal set in the performance review can be enough. Various studies, in areas ranging from health care to voting to energy usage to drinking habits, find that these reminders significantly affect behaviour and improve outcomes [12].
Providing opportunities for growth and development is a pivotal part of a leader’s role. Fail to provide sufficient routes to improvement and you shouldn’t be surprised to see employees looking for the exit. As the old saying goes, “people don’t quit jobs, they quit managers.”
Assessing progress
As the year draws to a close, it can be useful to assess whether we made everything we wanted of it. That can be done through self-assessment, handled as objectively as we can manage, or through a more formal performance review. It’s the job of both the worker and boss in question to make these reviews more than just a tick-box exercise and instead use them as a launchpad for further development for the year ahead. That means honest assessment, constructive, specific feedback, and most importantly setting out a framework through which improvement can be made. Proper self-assessment leads to proper self-development, which benefits the individual and the company alike.
More on Assessment
Refining Performance Assessments: Reducing Recency Bias for Superior Evaluations
References
[1] https://www.forbes.com/sites/sophiamatveeva/2019/12/24/how-to-review-your-year/?sh=698d70b1140a
[3] https://www.forbes.com/sites/sophiamatveeva/2019/12/24/how-to-review-your-year/?sh=698d70b1140a
[4] https://www.forbes.com/sites/sophiamatveeva/2019/12/24/how-to-review-your-year/?sh=698d70b1140a
[6] https://www.gallup.com/workplace/238064/re-engineering-performance-management.aspx
[7] https://www.mckinsey.com/business-functions/people-and-organizational-performance/our-insights
[9] https://hbr.org/2022/07/how-to-conduct-a-great-performance-review
[10] https://hbr.org/2022/07/how-to-conduct-a-great-performance-review
[11] https://hbr.org/2022/07/how-to-conduct-a-great-performance-review
[12] https://hbr.org/2022/07/how-to-conduct-a-great-performance-review
