Click for a great video on “Validation”.

Are you aware of your “Leadership Credit Rating”?

You are probably aware of the standard definition of a “credit rating”:  it’s an evaluation of the “credit worthiness of a debtor” – typically a business, or a government.  It’s an assessment of an organization’s risk of default.  A high credit rating indicates a low risk of default, and, therefore, an organization that should not have any problems borrowing money.

A high credit rating also means funds can be accessed at a lower interest rate.  A lower credit rating does not necessarily indicate borrowing funds will be difficult, but that the interest rate will be higher.  The highest credit rating attainable is a “AAA” credit rating – Triple A.  Every organization strives as best it can to achieve a AAA Credit Rating.

So, I’m sure we all understand in principle the concept of a credit rating as it pertains to monetary issues.  However, I want to introduce you to the concept of a “Leadership Credit Rating”.  Every leader has one.

I recently spoke with a high level business leader wanting to grow his leadership skills.  He recognized his forte is strategically creating effectiveness and efficiency with his people to accomplish corporate objectives; he has done an exemplary job doing that.  He has also recognized though, that he is not very adept at motivating and engaging his people at a deeper level.  In light of this he wants to strengthen his ability to communicate appreciation to his people.  He wants to increase his acknowledgment of the qualities of his team and affirm them for what they do and for who they are.

He has committed to daily, verbally and personally acknowledging and affirming the qualities he sees in his team members, and then communicating his appreciation.

In other words, he wants to increase his Leadership Credit Rating – he wants to give credit where credit is due.  He wants a AAA Leadership Credit Rating.  Here are the components of a AAA Leadership Credit Rating: Acknowledge, Affirm, Appreciate.  It’s simply choosing to acknowledge, affirm and appreciate people.

This leader knows without a shadow of a doubt that his team is the most valuable asset of his business, but he doesn’t really communicate that explicitly to them.  He is upping his game and choosing to flex a weak communicational muscle.  He understands that in order to truly inspire people to be the best they can be we need to not only equip their minds to do good work, but engage their hearts as well.  One way to do that is by implementing a AAA Leadership Credit program.

Acknowledge the contributions of each member on your team to them as individuals.  Affirm who they are, what they do and the value they bring.  Then, appreciate them by simply saying “thank you”.  By doing that you will build a AAA Leadership Credit Rating.

Some leaders do this very naturally, but oftentimes very effective strategic leaders are uncomfortable with this overt validation.  Here is what it looks like:

“Bill, I have noticed you are really engaged in the Smithson project.  In yesterday’s meeting you offered some very creative solutions.  You often do that, which helps us think outside the box to increase our service offering.  Thank you.  We are better because of who you are and what you bring.”

Or, “Jane, I noticed how patient you were with Jim yesterday.  Well done.  Thank you.”

It is important to acknowledge specific behaviours to affirm.  General appreciation is fine, but being specific shows you are truly noticing what your team member is doing.  They are then aware of what specifically they are doing to contribute to a positive outcome and your positive feedback.

Everyone in the workplace wants three things: 1. To know we are valued and cared for.  2. To know what we do matters.  3. To have a mechanism to measure the benefit we bring. (Feedback/KPI)

Leaders who work to build a AAA Leadership Credit Rating will create more engaged and inspired team members who will ultimately make more valuable contributions to the organization, and, thereby, increase the value of the organization and its profitability.

Give credit where credit is due, a AAA Leadership Credit Rating is good for people, and, therefore, good for business.