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On the Cover: No News Isn’t Good News
Beyond Numbers · October 2008

Why regular feedback is vital to a healthy and productive work environment

By Gary Harper

Editor: If there’s a theme for this issue of Beyond Numbers, it’s soft skills. We’ve talked about the need for soft skills before in the magazine (“Why writing skills are vital for CAs” in April 2008, for example), and this latest cover story won’t be our last on the subject. Soft skills are increasingly important in the labour market, and many in the CA profession are eager to strengthen their own. Yet, as we explained in our May 2008 cover story, one of the most common challenges for young CAs is selling their employers on the need for soft skills training. Another is getting more feedback on the job. So our cover story this month focuses on the soft skill of providing feedback: why it’s so important, and how best to provide it.

If you saw someone about to wander into traffic, you would instinctively warn them they were heading into danger. Yet far too often in the workplace, people headed down the wrong path are not extended that same support.

Early in my career, I had completed my first six months in a new position when a co-worker advised me I was due for a performance review. With some trepidation, I poked my head in my boss’s office and said, “I think I’m due for my performance review.” My boss looked up, somewhat startled by the request, and after a few seconds responded, “You’re doing fine. I’ll let you know if you’re not.” I walked back to my office feeling relieved by the passing grade, but with no clearer sense of direction than before the abbreviated “review.”

Unfortunately, “no news is good news” is the norm in many organizations. But no news isn’t good news when it comes to feedback. “No news” office cultures produce frustrated managers, confused (or perhaps blissfully ignorant) employees, and ongoing performance issues. The lack of communication feeds insecurity and spawns a culture where issues are “buried but not dead.” These symptoms stem directly from the lack of ongoing feedback about performance.

Feedback can be informal or formal, spontaneous or structured. This article focuses on formal communication about performance issues. Unfortunately, many managers see feedback as a reprimand, rather than as an act of support. People refer to “positive” or “negative” feedback, though it can be viewed simply as information communicated with the intention of improving results. This includes talking to someone about areas of concern (failing to follow proper audit practices, for example) and reinforcing the areas that are working well (recognizing an employee’s patience in defusing an irate client, for example).

The balance sheet on feedback

In today’s “do more with less” business world, people often feel they don’t have time to provide feedback—time is precious and should be spent “doing things.” So it’s perfectly fair to ask: “Are the benefits of providing regular feedback worth the time and effort required?”

To use accounting terminology: Examine the balance sheet. At first glance, it seems easier to tolerate a situation or correct a mistake ourselves, and in the short-term, that may be an accurate assessment. Yet when it comes to the long-term, we have to factor in the cost of not providing regular feedback: the time you spend correcting an individual’s errors, the loss of your confidence in that individual, and the emotional drain of having an unresolved issue on your mind. These costs nag at us and can easily boil over into angry confrontation.

The return on investment, however, is threefold: People know where they stand; issues are identified and addressed; and workplace morale benefits. Consider each return on its own merit:

People know where they stand

When I worked as a mediator, I saw both sides of many organizational conflicts. Performance issues were invariably front and centre. When I interviewed each person, I was continually amazed at how differently they viewed the same situation. Managers would detail various performance issues and other deficiencies of a staff member, yet many employees seemed genuinely surprised when they were taken to task over these issues. The absence of direct communication left people guessing about their performance and assuming things were fine, even if this was not the case.

People have a right to know how they’re doing in order to correct their behaviour and improve their results. Managers have a responsibility to provide that information and support employees in the efforts to improve.

Performance improves as issues are addressed

At the very least, feedback will bring concerns to the surface so that they can be discussed and stand a chance of being resolved. While a positive outcome can never be guaranteed, what is far more certain is that issues that are avoided will not be resolved. In fact, your silence will condone or seem to endorse the status quo, sending the message that “everything is okay.” No wonder the gap between employees’ perceptions and the reality is so large.

Avoidance often stems from the belief that “little” things will sort themselves out or eventually evaporate. Sometimes they do, but more often than not, they grow and intensify instead. Minor issues, easily resolvable when they first arise, can become intractable and emotional.

Communication improves morale

Dysfunctional workplaces are marked by a lack of direct and respectful communication. Frustration festers and manifests in an underlying tension, or more overtly in sarcasm and backbiting. In such environments, communication is often second-hand: “The partner wasn’t very happy with that aspect of the audit,” for example. This kind of second-hand feedback tends to distort the real message and prevent any dialogue or resolution. Suspicion and even paranoia ferment.

Conversely, when issues are addressed as they arise, the energy required to carry resentment can be channeled more productively into action. The ability to raise and address issues is a cornerstone of any effective team.

In the final analysis...

In assessing whether to invest the time and energy to provide feedback on a regular basis, think of it as a “front-end load” investment. Be realistic about the costs of failing to address performance issues. Ask yourself: “What price am I or the firm paying for avoiding the situation?” and “What might be gained from raising the issue?” The balance sheet will speak for itself.

How to deliver effective feedback

Many managers express concerns that feedback will not be received in the manner in which it is intended, and their concerns aren’t without merit. Criticism, even when “constructive” can trigger defensiveness. Fortunately, the following principles and tips will help you communicate directly and respectfully about performance issues.

1) Prepare

Too often the impetus for raising an issue stems from frustration (“This is the last straw!”). A message delivered in anger or with judgment will be perceived as an attack. If your intent is to reprimand or scold, or do anything but improve results, the recipient will react defensively. (My father used to raise his concerns with me stating: “I have a bone to pick with you.” Even today, those words cause my stomach to tighten.)

Once you’re clear about your intention, choose one or two examples to illustrate your concerns. Be prepared to explain why the matter is important to you (or to the firm). Clarify your goal for the discussion.

2) Be objective in describing the behaviour in question

Terms like “sloppy” and “unprofessional” will not only foster defensiveness but offer little to help the other person understand the issue. Instead, be as objective as possible: “You’ve been arriving at 9:15 for our 9:00 meetings,” or “I couldn’t find any follow-up on the three outstanding confirmation letters.” By being objective, you can reduce defensiveness and stay focused on the real issues. Although the other person may try to justify their actions, it’s unlikely that they’ll be able to quarrel with the facts. This will helps separate the person from the problem.

3) Provide a context for the feedback

Let the other person know why you’re concerned and explain the impact of their behaviour—
either on you personally or on the firm and its reputation. For example, tell them why it’s
important to ensure that confirmation letters have all been returned, and expand on the consequences of a failure to do a thorough follow-up. When you stay focused on the bigger picture, people are less inclined to view your feedback as a personal attack.

4) Invite their perspective and hear them out

The other person will undoubtedly have their own perspective on the situation. Show them the respect to which they are entitled by hearing them out and being open to broadening your own view on the matter. Show them that communication is a two-way street. Your goal is to work with the other person to improve performance.

5) Look to the future

In some instances, you might just want to let someone know how they could improve or what you need from them in future (“I need you to give me a head’s up if you’re running late on an audit,” for example). This phase of the discussion may also involve further analysis of the situation and joint problem solving. The more involved the employee is in determining the desired outcome, the more committed they will be to making it work. Conclude your meeting by summarizing the commitments you have each made, and set a time to follow up with the other person to assess how things are going.

Recognizing people and performance

Mark Twain once said, “I can live for two months on one good compliment.” While Twain may have been speaking sardonically, it’s a good reminder that feedback need not be restricted to correcting performance. It can be equally powerful when recognizing people and their contributions. Recognition and appreciation are key workplace motivators, directly linked to morale, retention, and productivity. And the more specific the recognition, the better. A comment such as “good job,” will be much more meaningful when you let someone know what made it a good job (“You really pulled through under such a tight time crunch. The client really appreciated your flexibility. Thanks!”).

Many times we value what others do for us, but fail to tell them so. We assume they know we appreciate them or their efforts. But often, that is not the case. You may find that an employee is pleasantly surprised (and in some cases, actually shocked) to receive a pat on the back.

A participant in one of my workshops put this theory into practice with astounding results. In the module on recognition, we challenged participants to recognize one employee each day for a month. The produce manager of a grocery store took up the challenge, and each day looked for an opportunity to recognize one of his staff. Sometimes he recognized what they did (a particularly creative display, going the extra mile with a customer); other times he acknowledged how they went about their job (enthusiastically, cheerfully) or what they brought to the team (humour, caring). At a follow-up session one month later, he reported that not only did he enjoy the experience, but his department also seemed to buzz with positive energy. What’s more, employees began to recognize each other, and even the manager!

Reaping the rewards

Whether you are communicating to improve performance or recognize contributions, treat your feedback as a gift, and remember that a gift not given is lost. Give freely, but only if you’re interested in improving results and creating better working relationships.

Gary Harper is the principal of Harper and Associates in Burnaby, and a trainer, writer, and facilitator who specializes in conflict resolution. Harper is a member of the instructional team of the Centre of Conflict Resolution at the Justice Institute of BC, and the author of The Joy of Conflict Resolution: Transforming Victims, Villains, and Heroes in the Workplace and at Home. He has been involved with the ICABC PD program since 2005 and has presented a number of seminars on “the people side” of business, including one entitled “Giving Feedback, Reducing Defensiveness.” Free articles by Harper are available at www.joyofconflict.com/ResourcesArticlesNEW.htm.

Works well with others...

What do you think is the most important communication skill for accounting and finance professionals?

Well the answer, according to a recent survey of chief financial officers across Canada, is interpersonal skills. More than 270 CFOs, chosen from a random sample of Canadian companies with 20 or more employees,
were interviewed by telephone, and here’s a breakdown of the results:

“Which one of the following communication skills is most important for accounting and finance professionals to possess?”

• Interpersonal skills: 45%
• Negotiation skills: 26%
• Presentation/public speaking ability: 17%
• Writing Ability: 5%
• None: 1%
• Other: 5%
• Don’t know/no answer: 1%

The survey was developed by Accountemps and conducted by an independent research firm.