Archive for Leadership

The myth of management

You’ve gotta read this article by Matthew Stewart. Seriously! Go read it!!

The money quote:

After I left the consulting business, in a reversal of the usual order of things, I decided to check out the management literature…

As I plowed through tomes on competitive strategy, business process re-engineering, and the like, not once did I catch myself thinking, Damn! If only I had known this sooner! Instead, I found myself thinking things I never thought I’d think, like, I’d rather be reading Heidegger! It was a disturbing experience. It thickened the mystery around the question that had nagged me from the start of my business career: Why does management education exist?

The article gives us the most thorough deconstruction of the whole field of management and the magical, unscientific thinking behind it.

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The seeeeeeriously cool way out of a downturn

Is there a better way out of a corporate crisis than layoffs? I’ve long felt that there has to be, and back in 2001 when my own IT company was deep in the hole, we fought hard to avoid laying off anyone (and succeeded).

I’m currently writing my second book which will be about keeping an organization happy during a crisis and one of the case stories I’ll be using is so good, that I just had to share it here.

The story is quite long, but it shows very clearly that there are better ways to handle a financial crisis than layoffs and panic. Enjoy!

wimThe economy may be bad, but Wim Roelandts isn’t really bothered much by that because, as he told me, this is his 8th. recession so far.

Wim’s worst crisis as a leader came in 2000 when Xilinx, a computer chip manufacturer based in  Silicon Valley, got hit hard and fast by the dot-com crisis. In the December 2000 quarter their revenue was $450 million – 9 months later, their revenues for the September 2001 quarter was down to only $225 million.

Something had to be done, and fast, but what? Wim Roelandts, an affable Belgian who is usually seen with a smile on his face, was the CEO back then and was clearly facing some tough decisions. And while Xilinx’ closest competitors wasted little time in firing a large percentage of their staff to cut costs, Wim felt here had to be a better way.

He came up with a plan for his organization and the 2.800 people in it and called it “Share the pain”.

The plan had three simple components.

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Serving your employees

This is a fantastic video of Colleen Barret talking about leadership and service at Southwest Airlines:

Southwest Airlines gets it. Their priority is:

  1. Employees
  2. Customers
  3. Shareholders.

This is the way it has to be.

My favorite quote from her talk:

“The most important priority that we have is our employees… I spend 85% of my time on employees and on delievering proactive customer service to our employees… They in turn spend their life trying to assure that the secondmost important customer to us, ie. the passenger feels good.”

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A note from the boss

Note to new employees

Imagine it’s your first day in a new job. You sit down at your desk for the first time, and waiting for you there is a note from your new boss.

In the note your boss bids you a warm welcome to the company, and then says this:

1: My most important priority is your happiness and productivity at work. If there’s anything I can do to make you happier and more efficient – tell me right away. This isn’t idealism, it’s good business, because happy people are more productive.

2: I will not burden you with endless rules and regulations. You’re an adult – I trust you to use your best judgment.

3: You have my full permission to screw up, as long as you own up to it, apologize to those affected and learn from it.

4: Please tell me when I screw up so I can apologize and learn from it.

5: Please make sure to hunt down people who do great work and praise them for it. I will do this as much as humanly possible, but I can’t do it alone.

6: If I get it right occasionally, I’d love to hear about it from you, too :o)

7: I will always have time for you. My calendar will never be so full that my next free time to talk to you is three weeks from next Friday.

8: I want to know about you as an employee AND as a human being. I DO care about your private life, about your and your family’s health and well-being.

9: Life is more than work. If you’re regularly working overtime, you’re just making yourself less happy and more stressed. Don’t join the cult of overwork – it’s bad for you and the company.

10: I expect you to take responsibility for your own well-being at work. If you can do something today to make yourself, a co-worker or me a little happier at work – do it!

This post was inspired by Michael Wade’s post over at ExecuPundit called Note from boss to employees. I liked his tips but I found the tone of them a little defensive. Michael’s tips had an undercurrent of “business is hard and being a leader is tough but we can slog it out together.”

I disagree – work is great fun (or at least it could and should be).

How would you like a note like this from your new boss?

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Guest post: One fun day

Way Out

I’m currently working to finish the first draft of my second book. In the mean time, please enjoy this guest post by Karl Staib.

One free paid day

Small companies are best positioned to offer the “one free paid fun day” perk. Let’s say you have ten employees and they receive three weeks off a year and they make an average of $45,000. You can add an extra day off and spending cash of $50 to each employee. This is a minimal investment of time-off and money for the amount of return received.

This investment will pay dividends because your company is willing to do more than the minimum to make its employees happy. When you give back to your employees they will give back to you. It’s what humans do. Smile at to someone and see if they can resist smiling back at you. They usually can’t because they understand the social cues that make a successful society.

The society that your company creates will determine the quality of work your company will get out of the staff. Let’s break down the numbers to see how realistic it is to implement the “one free paid fun day” perk.

Time-off

If you do give your employees one extra day off each year you’ll be adding 4.76% to their percentage of time off given, if they receive three weeks a year. Let’s say they average 250 working days a year; the company is giving up 0.40% of a working year. That’s less than half of 1%. It’s not a lot of time if you look at it over the whole year.

Pay

If you pay them $50 to go and have fun for that day you are only increasing their pay by 10% of 1%. It would only be 0.11% if they averaged a $45,000 salary in a year. That’s not much when viewed at from a whole year’s wages.

Overall

The big picture is most important. What will happen if your company gives a “one free paid fun day?” Your employees will tell their families and friends and they will probably inquire if there are any openings. Everyone likes working at a place where other people also want to work. There is a reason why good companies keep bringing in quality talent. They make sure that the employees’ friends know about the great perks of the company. If 60% of new hires are referrals, it means most of the hiring comes from friends and co-worker suggestions and this happens because the company is making sure that the work environment stays enjoyable.

Happy employees, as we all know, perform better. Giving a perk that doesn’t require much money or effort can separate you from the rest of your competition. Every company wants their good reputation to spread throughout the industry through word of mouth.

Here’s the Kicker

Each employee must give you a short report, no more than 300 words, about what they did. This is so you can learn more about your employees and what makes them happy. If they took their kids to the local amusement park then you may be able to raffle off free tickets at the company Christmas party. If they volunteered at the local recycling center then you may want to send out a survey to implement more green tactics. You may also want to put them in charge of saving the environment and the company money by conserving and recycling.

People want to work for a company that they feel has good values; they want to feel proud to tell people about where they work. I would imagine that not many people are proud to work for Phillip Morris, not because it’s a bad work environment, but because of the damage that cigarettes do to people’s lives.

Employees at Google wear their Google gear with pride. Friends are always asking them what it’s like to work there and if they can get them a job. Google works hard at work happiness because they understand the long-term effects that it has on the company’s bottom line.

It’s up to your company to figure out a plan that will have your employees telling their friends about the great company that they work at. You should start small. Implementing a “one free paid fun day” is a great way to learn more about the staff and separate yourself from the competition.

Do you think your company would ever implement a “one free paid fun day?”

Karl Staib writes about unlocking and kicking open the door to working happy at his own blog Work Happy Now! If you enjoyed this article, you may like to subscribe to his feed or read one of his most popular articles, The Five Most Important Things You Need to Know About Working Happy and 7 Tips to Process Your Stress Faster.

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Dealing with unpopular employees

Send them packing

Here’s a recent question from CNN Money:

One of my employees is pretty capable, but she lacks people skills. No one in the office likes dealing with her. Recently she called me at home at 9 P.M. on a Friday, crying and saying she was typing up her résumé because the entire staff was against her.

I listened, and then hinted that it wasn’t the time or place to discuss this. Now office tension is high. Can I tell this woman that, because she said she was updating her résumé, I assume she’s given notice?
(source)

That’s a good question but here’s an even better one: if that employee’s behavior is so bad and her social skills so atrocious, why hasn’t the manager reacted a long time ago? This is one of the most important things we have managers for – to make sure that counter-productive behavior in the workplaces is stopped.

I read an interesting quote the other day (though I’ve forgotten where) that said that any behavior by employees that is not stopped by management becomes de facto legal.

Bad behavior includes gossiping, badmouthing co-workers, constant negativity, unconstructive criticisms, bullying, not helping co-workers and not sharing information. If managers see this and do nothing – it’s now OK.

And it shouldn’t be!

One manager from a company I’ve worked with, took this responsibility seriously. One of his employees, a lady in her 50s who’s been with the company for many years, had become habitually negative.

She’d end most phone calls by slamming down the receiver and blurting “Idiot!” whether she’d been talking to a customer or a co-worker. She would criticize all suggestions and plans she was consulted on. Co-workers respected her knowledge and competence but didn’t dare ask her any questions because of her demeanor.

Finally the manager had a meeting with her. He explained exactly how he viewed her behavior and why it was making him and her co-workers unhappy at work. He then gave her the rest of the day off.

When she called in sick the next day, he was pretty sure he was going to lose that employee. She returned to work the day after and asked for a meeting with him. And this is when she amazed him.

She’d spent some time thinking about this and talking to her husband – and she’d come to agree that her behavior had become much too negative. The scary thing is that she hadn’t done any of this consciously – it had become a habit. One she now wanted to break.

She’s been working on it since and both the manager and her co-worker have noticed a marked shift in her behavior. So, by the way, has her husband.

This is exactly how managers should handle this type of situation. Employees who exhibit this type of bad behavior need attention and help to break out of it. If their behavior improves – excellent. Then it’s time to follow up and make sure the change is lasting. If it doesn’t help, then it’s time to fire that person.

Letting people stay in jobs where they don’t fit in, where they’re not happy and where they’re not pulling their weight is a mistake. Managers may think they’re doing them a favor… they’re not!

Remember, just one unhappy, unproductive employee can pull down the whole department. And what’s worse – this attitude is contagious. It spreads and infects others and if you’re not careful, you’ll end up with a hard-core little clique of dissatisfied, cynical employees who make everyone around them unhappy.

Your take

What do you think? Have you seen a manager take responsibility and address bad behavior in employees? Have you seen this behavior ignored and be allowed to spread?

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It’s who you work with

Connection CultureMichael Stallard has written a beautiful ChangeThis manifesto called The Connection Culture: A New Source of Competitive Advantage.

Connections matter at work. A lot. From Michael’s manifesto:

An organization with a high degree of connection has employees who are more engaged, more productive in their jobs, and less likely to leave the organization for a competitor. Organizations with greater connection also have employees who share more information with their colleagues and, therefore, help decision-makers make better-informed decisions and help innovators innovate.

It starts with the story of Michael’s wife cancer treatment at the hands of people who get the value of connecting:

[Katie began] high dosage chemotherapy at Memorial Sloan-Kettering Cancer Center in New York City. Our experience at Sloan-Kettering really surprised me. Every time we approached the front doors of the 53rd Street entrance in midtown Manhattan, the exuberant doormen locked their eyes on us and greeted us with big, warm smiles as if we were friends coming to visit. The receptionist and security people were equally friendly. During our first office visit with Katie’s oncologist, Dr. Martee Hensley, she spent an hour educating us, and, although the statistics she shared were sobering, Dr. Hensley’s warm disposition and optimistic attitude lifted our spirits and gave us hope. Simply put, we connected with the people at Sloan-Kettering, and it encouraged us and made us more optimistic.

I could not agree more. And these three point sum it up nicely:

Reflecting on these experiences made me realize three things:

  • First, connection is a powerful force that creates a positive bond between people based on both rational and emotional factors.
  • Second, connection contributes to bringing out the best in people—it energizes them, makes them more trusting and resilient to face life’s inevitable difficulties.
  • Third, connection can vary tremendously across organizations depending upon local culture and leadership.

Feeling connected to the people we work with is tremendously important. If for no other reason, then for the simple fact that we spend a lot of time with them!

Read Michael’s manifesto at ChangeThis.

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Top 5 reasons why “The customer is Always Right” is wrong

The customer is always right?

When the customer isn’t right – for your business

One woman who frequently flew on Southwest, was constantly disappointed with every aspect of the company’s operation. In fact, she became known as the “Pen Pal” because after every flight she wrote in with a complaint.

She didn’t like the fact that the company didn’t assign seats; she didn’t like the absence of a first-class section; she didn’t like not having a meal in flight; she didn’t like Southwest’s boarding procedure; she didn’t like the flight attendants’ sporty uniforms and the casual atmosphere.

Her last letter, reciting a litany of complaints, momentarily stumped Southwest’s customer relations people. They bumped it up to Herb’s [Kelleher, CEO of Southwest] desk, with a note: ‘This one’s yours.’

In sixty seconds, Kelleher wrote back and said, ‘Dear Mrs. Crabapple, We will miss you. Love, Herb.’”

The phrase “The customer is always right” was originally coined by Harry Gordon Selfridge, the founder of Selfridge’s department store in London in 1909, and is typically used by businesses to:

  1. Convince customers that they will get good service at this company
  2. Convince employees to give customers good service

Fortunately more and more businesses are abandoning this maxim – ironically because it leads to bad customer service.

Here are the top five reasons why “The customer is always right” is wrong.

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Advice for leaders

Better meetings

Here’s a piece of important advice for all managers who find that their calendar is wall-to-wall meetings three months into the future.

“Remember – you’re a leader, not a meeter”

This came up today in a meeting(!) with some of the nice people from Danish software company Maconomy.

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More death to job titles

Death to job titles

A while back I wrote a post about killing off job titles. I think they’re a waste of time and contribute nothing to our productivity, creativity or happiness at work. In fact, job titles can be the source of a lot of disputes and bickering in the workplace.

Matt Cardwell of Quicken Loans (a home loan lender based in the US) read this and liked it so much that he decided to issue a fatwa on job titles in his department. Here he explains why:

We never used to have titles on the Marketing Team at Quicken Loans because we always prided ourselves as having a marked anti-corporate and non-hierarchical culture. Actually, we did have titles, but everyone was called a “Marketing Manager.” So it was kind of a forced equality and no one EVER even talked about titles. But as the team grew from a few dozen people to over fifty, HR decided we needed some “consistency”, especially for purposes of external salary comping. So against our better judgment we relented and started creating a bunch of silly titles like: Marketing Coordinator, Marketing Program Manager, Project Manager, Jr. Project Manager, Sr. Project Manager, etc.

Well, it only took about 12 months for our brilliant decision to come back and bite us in the ass. Needless to say, it created all kinds of unnecessary noise within the team as people started to grumble about why a person who had only been here for 12 months just got promoted to Sr. Project Manager when another person who had been here for three years was still a Project Manager. I got so fed up with the divisiveness of it all that I just decided to banish titles altogether yesterday morning. So I went looking for some inspiration and Googled “job titles” or something to that effect and found your blog post from December. It was EXACTLY what I was looking for. So I dropped it into an email, added my two cents and started a revolt. Initially it was just within my 20 person eCommerce Marketing team, but it snowballed over the course of the afternoon to include most of the broader marketing team.

That is music to my ears and in response to Matt’s challenge, people got very creative. Here are some of the new titles:

  • Royal Storyteller & Propaganda Minister
  • Supreme Challenger of the Status Quo & Wicked Web Site Innovator
  • Mastermind of Possibilities, Visual Linguist, and Czar of the High Fiber Revolution
  • Flasher
  • Conceptologist
  • Pixelardo da Vinci

You can see more titles in my previous post on this.

How did Matt inspire people to do this? Here’s the email he sent out:

Okay, team, so I want each one of you to take 15 minutes today to really think hard about what YOU DO and what MAKES YOU HAPPY at work and create a title for yourself that expresses who you are and your impact on the business and your team mates. Forget about what Salary.com or some HR person said your title is or should be. Forget about what you get paid, how many years of experience you have, or what other people’s “titles” are in comparison to you. Tell us WHAT YOU DO and make that your new “title”.

As of this morning, traditional titles on the Website Marketing Team are DEAD. D-E-A-D. Somehow over the past year people have become WAY too caught up in who has what title. So we’re going to end the madness today.

If this scares you, makes you feel like we’ve taken something away or makes you wonder how your resume will look without that title-that-really- never-does-justice-to-you-and-your-talents-anyway, ask yourself when was the last time someone called you by your title? When was the last time Todd Lunsford or Bill Emerson or Dan Gilbert called you by your title? Worried about how this might impact future compensation? Don’t. Numbers and money follow, they do not lead. Kick ass at whatever you do, and the wealth will eventually flow to you. I’ve seen it happen again and again in my career … and especially here.

If you are concerned about someone not recognizing how important you are because you no longer have a standard title, then here’s your chance to create a title for yourself that will convey exactly how important you are. And because you are creating it, it will be all yours. No one else will have that title. Think of the conversations your new title will start with complete strangers. Think of the opportunities it can create for you in terms of expressing who you are, not what someone CALLS you.

“But what if I don’t like my description in three months …” you ask? What if what I do CHANGES? Well, then you can change your description. It’s that simple. No one ever stays the same … we are all growing … so let your “title” do the same when it’s time.

Here’s your chance. You have until the end of the day to let us all know who you are. Have fun, be creative, be humorous, but above all, be real and true. Remember, this will be on your e-mail signature, so please be aware of that.

I can’t wait to see what all of you come up with.

DEATH TO TITLES!

Matt

Matt Cardwell
Idea Salesman, Energy Focuser and People Unleasher
eCommerce Marketing Team
Quicken Loans
My title challenges your title to a duel. I predict a draw. – Me

I had to know more, so I emailed Matt with a few follow-up questions, and here’s an update from him on the fatwa on job titles:

You had a couple of questions around the titles Fatwa from your previous e-mail. One question was about whether we had abolished titles company-wide. So far only the Web Marketing Team and the Idea Lab (our creative team – basically an in-house agency for our advertising production) took up my challenge. Not surprisingly, the team that actually got the title “promotions” that started this whole thing opted not to join us in our little revolution. I threw the challenge out to them, but I haven’t really seen anyone take up the torch.

I do know that our CMO, Todd Lunsford was extremely supportive of the no-title revolution. As I mentioned, we really only started using titles recently for comping purposes. But even there, they are generally not very useful for the more specialized people on my team (usability pros, search engine optimizers, etc), because until very recently, Salary.com didn’t make distinctions between interactive marketers (which are in high demand) and traditional marketers. As an organization, we’ve been pretty ambivalent about titles. Most of our Sr. Leadership Team and many of our team members simply have no title on their email signature, or just identify themselves with their team. For example: Joe Smith, Web Marketing Team

So I think this will still spread … we won a couple battles, but we still have a war going on. It will come. And I’ll keep preaching.

This is fantastic! I’m adding Quicken Loans to my list of “Companies that get it.” And I’m not alone – they recently placed second in Fortune Magazine’s Best Company to Work list, one behind Google.

Your take

What’s your take? Is your workplace ready to issue its own fatwa on job titles? Or do you see some value in having a “real” title on your business card? Please write a comment, I’d really like to know.

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