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cover story / by Vicki Jayne

www.management.co.nz

/ cover story

Should work be fun?

Some Fortune 500 companie.
others have started laughter clubs; more employers are branding their companies
as “fun” places to work, and managers can now be trained at a Happiness
Institute. Why is happiness being taken so seriously and what is its relevance to
workplace productivity and economic wellbeing?

SEPTEMBER 2005 ManaEement 29

cover story /

B
ack in 1940 an automotive worker on the production
line at Henry Ford’s River Rouge plant made the mis-
take of smiling at work – and was sacked. He’d already
been warned about laughing and in Ford’s work world,

productivity and play did not mix.
This sad little story is cited in a new book by American busi-

ness consultant and author Daniel Pink that sets out to explain
why the ground has shifted so much that the wise employer is
now actively promoting play and laughter in the workplace. It’s
all to do with moving on from the information age – where linear,
logical thinking tended to dominate – and into the “conceptual
age” where once frivolous aptitudes such as empathy, humour,
playfulnessandjoyfulnesswill, says Pink, increasingly determine
which organisations or individuals flourish and which don’t.

There’s a whole bunch of factors at play here but in A Whole
New Mind Pink focuses on the three “As” that are helping change
both the content and emphasis of work in the developed world.

question is how can we build
on strengths rather than trying to

-DaveWlnsboraugh.

One is automation which is steadily taking out all the linear,
logical, analytical sort of work computers can do better than
people. The second “A” is Asia which is busy hoovering up manu-
facturing work as well as a lot of traditional back-office jobs in
areas such as computing or finance.

Then there’s “abundance”. People in the developed world have
so much choice of stuff that they are now seeking something dif-
ferent (in terms of concept or design); they’re also after objects
or experiences that can deliver a deeper sense of meaning – even
spirituality.

Pink’s take on all this is based on how the brain works – and
why what he describes as right-hrain or R-directed thinking is
now moving into the ascendant because it does the intuitive,
conceptual, lateral, big-picture, emotionally intelligent stuff that
computers can’t do. It’s also the sort of thinking that thrives better
in a less-structured and more fun-filled environment.

But it’s not just this sort of shift in work emphasis that’s
prompting more people to look at happiness or fulfilment in the
context of work.

There’s also increasing evidence for what seems like a bit of a
no-brainer – happy workers are more productive. And increased
productivity is generally regarded as one of the holy grails of or-
ganisational as well as national endeavour. It’s also an area where
New Zealand Is playing catchup as, according to latest OECD
figures, we’re a bit of a laggard on the productivity front.

While economic productivity was once squeezed from work-
ers largely at the expense of their health and happiness, now the
flow is reversing and links are being made between employee
satisfaction and a company’s bottom-line success. As manage-
ment consultant and author David Maister discovered from his
international study of 139 offices – companies that do best on

employee attitudes are measurably more profitable and it is at-
titudes that drive financial resuhs rather than vice versa.

If all this isn’t convincing enough – then try putting it in the
context of today’s skills squeeze which is becoming an increasing
problem for local companies. Our tight labour market is prompting
employers to pay some serious attention to developing an employ-
ment brand that can attract and retain skilled staff. Recruitment
ads now sport a rash of “fun” places to work and companies are
making the most of their “great place to work” credentials.

Many are very aware of catering to employees who do want
to “have it all” – a great work life and time to spend enjoying
family and friends, playing sport, travelling or getting involved
with community work.

It seems that people’s expectations of what life has to offer them
have risen on the back of rising economic wellbeing. They want
more than a decent level of pay for their efforts – they’re also after
higher levels of job satisfaction, a sense of meaning and the ability
to enjoy their lives both within and outside the workplace.

So how do organisations ensure they have a happy work-
force?

Positive psychology & the Dalai Lama
The big stress bogie is a fairly recent but increasingly high-profile
workforce issue.

Many people are working longer hours, juggling family com-
mitments, dealing with a greater deluge of information from more
sources, and having to make more choices in a world that offers
an abundance of options but less time to pursue them.

At the same time, more people than ever before are being
diagnosed with depression, now described as reaching epidemic
proportions in the developed world and, according to the World
Health Organisation, on its way to becoming the second most
burdensome disease in the world. It is ironic that in a world of
increasing abundance, more people are committing suicide.

That’s not to say stress is a primary cause of depression but
there is increasing evidence that the fiow goes the other way
and that happiness provides a good antidote to stress as well as
contributing to better health. For example neuro-immunologists
have found that laughter decreases stress hormones, boosts the
immune system and increases aerobic function.

Such findings refiect a shift in mindset of those who study
psychological welfare. Instead of focusing mainly on finding and
fixing what’s wrong with us as human beings, they’re now looking
more closely at how to build on our innate strengths. It’s called
“positive psychology” and it’s increasingly informing approaches
to boosting individual and organisational health.

Wellington-based organisational psychologist Dave Winsbor-
ough says he started offering stress and resilience courses in “furi-
ous frustration” at all the negative attention being paid to stress.

“I insisted we get on the other side of the ledger and talk
about resilience because most people cope pretty much most of
the time. The question is how can we build on those strengths
rather than trying to stop stress.”

At the heart of resilience, says Winsborough, are three factors.

3 0 www.management,co,nz Management SEPTEMBER 2005

“First is an optimistic outlook on life – that’s the glass half-full
approach; secondly, a profound sense of personal control, that
sense that I am master of my own destiny and that if bad things
happen I’m not helpless or a victim; and thirdly it is experiencing
a sense of engagement and involvement with the nature ofthe
work itself (a state often described as being’in the fiow’).”

Having now assessed some 800 people in New Zealand work-
places, Winsborough says the ones who show better coping skills
(and less stress) have those three factors lined up.

Some are naturals in the resilience/happiness equation.
Research now suggests that people are generally born with a
happiness set point that, while impacted by life’s circumstances,
doesn’t shift too radically over time.

So once a miserable curmudgeon – always a miserable cur-
mudgeon?

Well, no. It’s not that depressing, according to Australia’s “Dr
Happy” Timothy Sharp – founder and director ofthe Sydney-
based Happiness Institute.

“There is evidence we are born with a set happiness range… and
that range is fairly large so there’s a reasonable amount of room to
manoeuvre. Depending on the research you look at, it seems biologi-
cal factors account for about 50 percent of happiness, so that means
at least 50 percent is under our control and can be shifted.”

The good news, says Sharp, is that achieving happiness re-
quires nothing more than practising a few simple but powerful
disciplines every day. Which is what his Institute is all about.

Set up two years ago, it was a logical extension ofthe services
he already provided through a well-established clinical psychol-
ogy practice that had been attracting increasing demand from
unhappy executives. Sharp had observed the growing infiuence of
the positive psychology movement offshore and realised no-one
was really taking it on in Australia.

“I think we’re riding a wave of interest in health and wellness
– though in some ways we’re slightly ahead of the wave. In the
corporate field, we’re now being fiooded with inquiries from
organisations seeking to get the best from their employees. What
we otfer is a slightly different way of achieving that.

“We know [from research] that happy employees are more
productive, that they work more effectively in teams and that

FINDING THE HOT BUTTONS
One of the brands that DB puts a lot of effort into is its employment brand
– and being in fhe hospitality frade is not the only reason the company
fakes enjoymenf seriously,

“We work really hard on making sure people enjoy coming fo work here
– and our culture fells us fhey generally do,” says Mark Campbell, DB’s
general manager, HR and corporafe affairs.

The company, he says, is big on culture and leadership – and the fwo
are inextricably linked,

“The cjifure piece is really around wtiaf makes people tick. For us fhat
means undersfanding whaf fhey wanf and gef ouf of coming to work. Some re-
alty like fhe people they work wifh, ottiers will really enjoy the fype of work they
do. If’s a maffer of being responsive fo individual needs and being as flexible
as possible around fhose. You can’f apply a one-size-fifs-all fo your employees,

“So when we’re recruifing, we fake info account whaf people’s personal
needs are and fhen we know upfronf whaf we need to do fo make them
happy and keep fhem working wifh us,”

The company values filings like open communication (eg, employers
are kept in fhe loop as fo fhe company’s business plans and fheir place
in fhem), career development {including offshore opporfunities in relafed
companies) and opporfunif ies for fun (a yearly D6 day for families, fun
runs, Chrisfmasparflesefc),

“There’s a mufual respect fhaf pays dividends. If you freaf your people
well, they’ll freaf you well,” says Campbell,

Measures of success are more anecdofal fhan formal. Visitors commenf
on fhe good work afmosphere, furnover is low, culfure surveys are posi-
tive, sfaff are happy fo promofe fhe company and fhere’s no evidence of
any discontent from former employees,

“Employer branding is a big objecfive – and since we de-lisfed from
fhe sfock exchange lasf year, if’s somefhing we see as critical fo fhe
company’s success,” says Campbell,

“You can’f differentiate yourself much fhese days in ferms of fhe
reward you give peopie. Everyone wanfs fo be compefifive on salaries
and benefifs. You have fo go for of her elemenfs in ferms of creating work
environmenfs where people enjoy coming every day. So you have to gef
smarfer at finding whaf the M buffons are – whaf makes people feel
good about being parf of your business,”

SEPTEMBER 2005 Management www.management.c0.n2 3 1

cover story /

they’re more likely to stay with their employer, so we’re getting a
lot of interest from professional service firms or other industries
where it’s getting much harder to attract and keep good people
– and this is becoming a worldwide problem.

“What we offer is a way to both retain good people and keep
them functioning at a higher level so they are really engaged and
enthusiastic.”

Basically the courses cover a series of core skills identified as
improving happiness.

“Thinking optimistically” is undoubtedly a crucial compo-
nent, says Sharp, and even if they’re not naturals, people can be
taught to identify and challenge unhelpful thoughts in order to
plant more optimistic and helpful ones.

“Improving relationships” is another biggie. Research strongly
suggests that happy people have both more and better quality
relationships as well as experiencing better social interaction.
These skills can be built through improved communication skills
and learning to support others.

Goal clarification and execution is also linked to a sense of
happiness and achievement, as is identifying and utilising your
strengths.

While much ofthe above sounds remarkably like “Leadership
101”, the fifth skill on Sharp’s list has a distinctly Zen quality. It’s
“enjoy the moment”. Happiness, he says, is only really experienced
in the “now” while unhappiness often results from too much
dwelling in the past or worrying about the future.

Which is about where the Dalai Lama comes in – because the
science-based positive psychology movement appears to have a
lot of parallels with Buddhist philosophy.

NO LONGER US AND THEM
Employment is not the one-way street it used to be – it’s just as much an employ-

ee’s decision who they choose to work for as vice versa and that’s helped throw

greater focus on staff satisfaction, says Heskefh Henry general manager Justin Cox,

“tn earlier employment models, the ball was pretfy much in the employer’s

c o u r t – t h e y had everything fo offer and nothing fo lose whereas we don’f see it

fhaf way at all. Employees exercise more choice and are more inclined fo move, so

retention is a big issue and happiness is inextricably linked fo refention. Money

alone jusf doesn’t cut if any more,”

The reality is thaf people wanf and expecf more from life,

“We identify that as work-life balance – if’s nof j j s t abouf work but abouf

lifestyle choices,” says Cox. “Thaf links back fo fhe wider options people have fo

work internafionally. If it was jusf money thaf maftered, fhey wouldn’t he looking

in New Zealand,

“People wanf to work wifh an organisafion fhey feel fhey can belong fo and

identify wifh – the employment model is nof us and fhem but us fogefher, Em-

ploymenf can’f just be a one-way sfreef. Employees are prepared fo fake on fhe

challenges fheir employers face and fhey wanf fo choose an employer fhaf allows

them fo have fhe lifesfyle choice fhey’re affer,”

Heskefh Henry developed what if called ifs family friendly policy back in 1999

for which if earned an award from the EEO Trusf a year lafer. More recently.

the Trust has focused on fhe benefifs of fhe firm’s remote work policies. Af

present 15 sfaff af various levels (nearly 20 percenf of ifs employees) have

remofe connecfions fo give fhem greafer work-life flexibilify,

“If’s part of our affracfion as an employee – we believe strongly in work-

life balance and are open fo suggestions as fo whaf works best for individual

sfaff. We don’t fake a one-size-fifs-all approach,”

Along wifh ifs general legal educafion programmes, fhe firm inciudes issues re-

laf ing fo healfh and wellbeing such as nufrifion and if recenfly ran a health aware-

ness week fhat involved a different acfivify (from walking fo Pilafes) every day.

“We provide a wide mix of informafion and keep if all preffy upbeaf. So

fhere are a whole number of fhings fhaf we do fhaf help fowards creating fhaf

happiness model,”

Alf hough benefifs of a happy workplace can be measured in culture sur-

veys and in a rate of churn thaf is below fhe median for legal firms, Cox views

the pressure for more formal measuremenf as frusfrafing.

“How do you quanfify benefifs? We don’t and we don’t see fhe need fo

do so – excepf fhat we know if gives our remofe workers somefhing fo rave

abouf. But we don’f see fhaf as being fhe driver. If’s fo do wifh providing

solufions thaf meef people’s needs and fhaf’s all parf of how Heskefh Henry

sees itself, In many ways fhe programmes we’re running now jusf formalise

fhe poinfs of difference fhis firm has long had – of focusing on lifesfyle

choices while being a law firm of high sfanding,”

3 2 www,management,co.nz Management SEPTEMBER 2005

/ cover story

THE TOP THREE INCHES
The concept of happy employees leading fo happy cusfomers leading to

beffer company performance is an old one – buf increased compefifion

befween firms and the falenf war has given it greafer focus, says Marley

managing direcfor Colin Leach,

“There’s a lot more pressure wifhin society from all sorfs of directions fhese

days fo fake beffer care of one anofher. In relafion fo fhe workforce, if’s all to

do with fhe fop three inches – sfate of mind. The analogy fhere is wifh any

sports feam and why one week they play brilliantly and the next badly. They’re

fhe same people with the same skills – if’s jusf sfafe of mind,”

The company has a sfrong focus on healfh and wellbeing, which covers

everyfhing from sfandard healfh and safety fo educafion on specific physical

condifions (hearf healfh, diabetes efc) and workshops fhaf focus on develop-

ing more positive affifudes,

“Some people fend fo view sifuafions wiffi the black hat on – they look

af fhe in-fray, jusf see more and immediafely drop below the pain line.

Or fhey could look at fhe same in-tray in a more posifive lighf, If’s really

abouf ouf look and we’re aii accounf able for fhaf,

“We somefimes do group sessions which has fhe advanfage fhat we

have a common language fo falk to each other abouf If, So if someone

nofices anofher feam member is a bif down, fhey have a language and

methodology fo deal with if,”

Buf you also have fo gef the basics right, says Leach,

“We don’f check fhe happiness scale – the chances of being happy it you’re

unwell or have budget problems or any other issues at work or at home are nof

good. So our healfh and wellbeing programme covers all fhose fhings.”

He thinks fhe days are long gone when employers see sfaff as jusf

fhere to do a job and there the inferesf ends,

“Common sense says you can no longer behave fhaf way because if is

hard fo get and keep good people. I guess the difference now is fhaf more

companies offer formal programmes focused on sfaff wellbeing,

“If’s a frame of mind for business I think – fhaf fhe difference befween

how you perform and how your compefitors perform is how weii you freaf

your people and how well fhey feel fhey are being freafed,”

The company doesn’f measure the actual bottom-line impact of em-

ployee satisfacfion, says Leacfi,

“I guess we just believe that good housekeeping leads to better

performance and a good safety record. Experience tells us that is true

and sfafistically if it was measured across a whole pile of businesses, I’d

expect if to be true. We’re prefty comforfable fhere is a link buf if would

be quite a challenge to pin it down.”

Colin Leach: It’s ail to
do wifh ‘state of mind’.

It’s interesting to note that the advance in brain function re-
search made possible by sophisticated magnetic resonance image
(MRl) scanning has been able fo identify Buddhist monks as the
equivalent of Olympic athletes in the happiness race.

That’s because a monk’s way of life involves constant practice
of activities now known to increase happiness. Meditation is in
there – but so are feelings of gratitude, compassion for others,
tolerance and forgiveness.

This link between happiness and kindness toward others is
a two-way street – happy people are more giving but being more
giving also increases happiness. This is amongst insights offered
by the Dalai Lama in The Art of Happiness at Work, a book co-
authored with Howard Cutler.

It’s a simple book but covers a lot of practical ground to do
with knowing your own strengths and limits and being able to
communicate when these are either over- or under-stretched. It
sees the main keys to finding happiness at work as attitude and
a sense of meaning.

Meaning was one thing Ford’s world of production-line work
rather lacked – along with laughter – but it turns out to be a work
attribute that both the Dalai Lama and the man often described as the
father of positive psychology, Martin Seligman, view as a big plus.

Studies suggest that people generally see their work in one of
three ways – it’s either “just a job” whose only worth is the pay
packet; a “career” or means to personal advancement; or it’s a
“calling” that is associated with a higher sense of meaning and
purpose. Those with a sense of calling tend to be happiest with

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cover story /

what they do because they do it for its own sake rather than for
the material benefits it brings.

Which doesn’t mean that everyone has to be out there healing the
sick and saving souls or whales – the Dalai Lama believes it’s perfectly
possible to re-frame any job in the context of a higher purpose, eg
providing the best for your family. It’s an area where values-based
organisations or those that support charities, provide options for
mentoring or help contribute in other ways to community/family
wellbeing are ahead in the happiness generating game.

The cheer leaders
A sure-fire way of generating unhappiness in the workforce is lousy
leadership – insecure, dictatorial grumps are bad news for workplace
morale. It is now almost unequivocal that poor relations with the boss
are a leading cause of worker dissatisfaction, says Winsborough.

“Bad leaders alienate workers, decrease customer loyalty and
destroy shareholder value. So it behoves organisations to do two
things – select and train for really good leaders and get the bad
ones out. And I think New Zealand organisations are bad at both
those things.”

The corollary, of course, is that good effective leadership
“goes to the absolute heart of creating a happy and productive
workforce”, adds Winsborough.

Leaders are not always aware of how much their own state of
being impacts on others, notes Sagacity managing director Gilly
Chater whose work in the area of leadership and change is very
much focused on “change from within”.

“When people are in a stressed state, it really impacts on
their state of mind, productivity, performance in relationships
– all these things can break down. So how does it impact on the
bottom line when people get into a really healthy state where
they understand what’s going on for them? It’s really amazing

the changes that can occur in a very short space of time – even
the most testing of relationships can get better.”

Her recipe for a state of inner calm is simple – you just choose
it. There’s no need to follow a specific technique, recite positive
mantras or even work hard on changing the content of your
thought, says Chater.

“It’s understanding rather than technique and it’s really focus-
ing on how we create our own life experience through our think-

WHOLE OF LIFE FOCUS
There’s a growing recognition that work and life can’t be neatly compartmen-
talised and employers have to think more holistically when it comes to employ-
ment conditions, says Merck Sharp and Dohme’s HR director Claire Hofer,

“When you’re talking work-life balance, it’s really a whole of life thing
– so that if work is an interesting and fun piace to be, it helps make life
interesting and fun,”

But, she adds, keeping workers happy is not the starting point so much
as the result of a whole bunch of workplace practices that create a good
work environment,

“It’s the various things you do and do well fhaf lead fo people being
happy and motivated at work. In other words, if you jusf decided fo imple-
ment a fun programme, fhose people who are currenfIy not happy wifh
their working condifions are nof going fo be any happier,”

What goes info fhe whole package are things like individual career de-
velopment or work-life balance needs – and fhe lasf goes beyond specific
individual arrangements, says Hofer.

“If’s a whole philosophy of how you operate and what the environment
is – can people leave the office fo go fo an appoinfmenf without if being
checked – can you chat wifh colleagues without if being seen as nof
working – there are foundational things in the way you run the company
that drive a lot of that happiness,

“That’s one aspecf – fhe of her is having work fhaf is meaningful which
is around the way you deveiop people and develop leaders so they’re lead-
ing and managing employers in a great way,” says Hofer,

Then, when there are oppoffunifies to have fun and to celebrate good
performance (as at MSD’s annual conference) it’s not regarded cynically
but springs genuinely from a positive work environment.

In terms of measuring boffom-line advantages, the company does
cultural surveys, has feafured in Unlimlted’s reports on best places to
work and has a positive employment brand. Despite skill shortages it’s
had no trouble attracting the talent if needs with recent hires choosing
fhe company following some great work experience offshore,

“We’ve had to be creative abouf it but haven’t struggled fo fill roles
yet,” says Hofer.

The company senior management team have all been through work-
shops and coaching with Sagacity’s Gilly Chater and like the emphasis on
accessing personal strengths,

“It’s not abouf following someone else’s formula which is what you
sometimes get in leadership training. It’s abouf how you manage yourself
and if you’re calm and approach work in a happy contented way, fhen the
way you lead others is much more authentic and straightforward – and
people really respond to that,”

3 4 www,management,co,nz Management SEPTEMBER 2005

/ cover story

ing. So ifweVe having negative thinking or stressed thinking, then
weVe creating upset. But the focus of this is not on what we think
hut the very fact that we think – there is a difference.”

Instead of getting caught up in the thoughts, you can step back
and use your conscious awareness to get a wider perspective on
what thoughts are currently shapingyour experiences and, if the
results aren’t too rosy, choose something that works better,

Chater has been teaching what are referred to as the three
principles – thought (ability to create experience), consciousness
(awareness), and mind (the source of energy and insight) – since
finding out about the work emerging from the Initiative for Innate
Heahh at West Virginia University. The exciting thing, she says,
is that this approach dovetails neatly into scientific research into
how the mind works – a crossover made evident at a conference
held in Virginia in April.

A sort of “Zen meets western medicine” encounter that
brought a range of heavyweight thinkers from neuroscience,
psychiatric medicine and education psychology, it explored the
growing incidence of chronic stress, its impact on physical and
psychological health and the links between thought and experi-
ence.

The innate heahh approach is an ‘ inside-out’ approach – that
simply says the capacity for mental wellbeing is always accessible
in all people once they stop living at the mercy of wbat they think
and start taking control.

“Once you’re aware that you can choose to be happy, tben why
wouldn’t you?” asks Judith Jamieson, who called her company
Access Point to reflect the character of her coaching work. In
partnership with Chater, she is running workshops that intro-
duce leaders to the “coaching from within” approach to develop
employees and achieve sustained change.

“It’s a different frainework because the focus is not on fixing
what’s wrong but on accessing our innate health to choose a bet-
ter way of doing things,” explains Jamieson. “And when people
are in a healthy state, they see more possibilities, they’re more
creative, their relationships with colleagues improve… It’s those
who are stressed and in an insecure state of mind that cause all
the upsets in the workplace.”

It sounds simple, says Chater, but once people get it, the effects
are profound and long lasting.

“It’s a whole different approach to change – one that doesn’t
need constant reinforcement. It was a profound experience for me
to understand and since then I’ve seen its value with my clients
in a range of different organisations.”

That leaders who approach their work from a calm, secure
state of mind get better results from employees seems certain
– but what about the bottom-line benefits?

Not many companies run formal measures to assess the profit-
ability of a happy workplace – though culture surveys, reduced
sick leave and lower staff turnover are among indicators of a posi-

^ if Happiness is necessary but not
a sufficient driver for performance.
But good performance absolutely
makes a difference in terms of
feeling

tive work environment. And there is now a statistical technique
called structural equation modelling that allows companies to
model tbe relationship between staff satisfaction and profit, says
Winsborough.

“You can measure that stuff and Vm a real believer that it
makes a difference.”

But he adds a rider.
“Happiness is necessary but not a sufficient driver for perfor-

mance. But good performance absolutely makes a difference in
terms of feeling happy. So I would draw tbe arrows that way.

“In other words, success is far more likely to lead to good effect
on the job tban good effect on the job will lead to performance.
It’s a two-way street but if you want to build happiness in the
workforce in the belief you’ll end up being successful, you’re
working uphill. If you get the ingredients for being successful in
business right, then work on creating a happy workforce, that’s
when you’ll pick up some real momentum.” iVl

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