My preference? Performance!

27Jan10

I have used my fair share of personality and work style inventories in my work. Used properly they can be a real asset to self and employee development. There are too many times that they hinder performance, especially in a team environment. A recent coaching session with an executive surfaced some examples of the harm that can occur when a tool is misused.

The first problem is that too many folks believe, and I fear are taught, that your style justifies your behavior. The executive I was working with insisted that she just could not work with a peer because “I am an i-D, and she is a C-S”. What??? I have worked with the DiSC profiles for over 25 years, so I knew what she was talking about. The DiSC measures work style tendencies based on Jungian typologies. It does it well for a simple instrument. The focus should be on helping people understand their styles as preferences, not life scripts. Leaders should focus on how their preference actually limit their ability to form well rounded strategies, and as an executive it is their responsibility to seek the best strategy.

Problem two. You can find an instrument to validate your decision making if you look hard enough. This executive was well read, and over profiled. She had been firo-B’d, Myers Brigged, enneagramed, DiSC’ed, Belbin’d, etc. She had much knowledge, but was woefully lacking in wisdom. Understanding oneself is critical to great executive leadership. Wisdom occurs when you use this information to make behavioral choices that at times may run against your natural inclination.

Problem three. A sign of style testing fatigue is when people start referring to themselves by the inventorie’s labels. “I’m an ENTJ”. OK, but you are also an executive responsible for performance. While I might find your knowledge of personality styles interesting, it is your bottom line on results that determines whether I want you to stay on the team.

Problem four. The research for validation of some instruments is troubling. The National Academy of Sciences raised concerns over the validity and reliability of the Myers-Briggs instrument. It is probably the most popular one on the market, but we who are involved in looking at the human side of performance should take note. Too often, our work is looked at as “soft”. We must take care not to feed that perception by using tools that are not backed by good science and research.

The bottom line to me is simple. Ultimately the most reliable data to use as an executive is performance data on results. A great executive understands that the biggest impediment to organization performance just might be them. Using these tools can help them understand why they may tend to behave or think in any given fashion. The issue remains what one does with the information. It’s called free will. And executive judgment.

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A Road Warrior’s comment…It all matters!

19Jan10

I have just returned from another business trip and it confirmed some of the things I have come to believe about branding. Again, it’s the experience that matters. The short list:

First impressions are critical. I visited two restaurants that were direct opposites. At the first one, I had to fight my way past the crowd to get into the front door. My first thought was that is was a good sign the restaurant was popular, but it turns out it was the designated smoking spot. Not pleasant. Once I did get in the door, the greeter appeared to be more interested in her conversation with the servers then acknowledging me. I just wanted to know where to sit. The second restaurant was wonderful. The entrance sparkled, the greeter friendly, servers were serving instead of clustered around a table talking, a very positive vibe!

Do sweat the details. I do an exercise in class where I put a black dot in the middle of a poster size sheet of paper and ask people what they see. They always respond with the dot, rather than the far greater area of white space. We see the blemish much more than the whole. Everything matters. Pay attention to it. Restaurant number one above had a featured wine on the special board. I ordered it. They were out of it. At 6 PM!

Customer facing employees are the primary brand ambassadors. Whether it is the front desk clerk at the hotel, the greeter at the restaurant, the server, they set the tone. If it is clear to me they don’t enjoy their place of business, neither will I. Attitude matters.

Don’t let an obsession with margins trump value. I understand these are tough economic times and appreciate how hard it is to make a buck these days. I have a friend who preaches that controlling food costs is the key to success in the restaurant business. He does a good job of keeping the costs as low as he can. I don’t eat there. His metrics tell him his margin, they don’t tell him how many people never come in. My client put me in the hotel I stayed in to get my opinion for a proposed client summit they are thinking of hosting there. I think the cheap linen, no in room coffee, one tiny bar of soap, might kill the deal.

Word of mouth has gone digital. I always ask my clients where I should eat and stay. This is the most important factor in my decision making. A very close second is the digital site called Yelp. I read the reviews and comments. In a new city, I tend to start with the highest rated establishment and work my way down the list. You need to know where you fall and what folks are saying about you.

If something goes wrong, I don’t really care who is to blame. I just want a solution. Even in the best of businesses, things happen. Acknowledge it, apologize, then offer a solution. And dear server, blaming the kitchen does not protect your tip.

Special note to hotels. Miss a wakeup call request, lose a business traveler. Period.

Enough ranting. It all matters. By the way, do try the Red Ginger in Traverse City, Michigan. The other restaurant? I won’t publicly bad mouth them….maybe they just had a bad day. You can check my reviews on yelp.com. Turns out there are many comments there. I should have checked them.

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My new year’s wish

31Dec09

I will shed no tear over the passing of 2009 tonight. Sure, there were some blessings and accomplishments for which I am grateful. There was a recurring theme for 2009, not only for my business, but for most of my client base as well. It seems 2009 was all about solving problems. Much time was spent trying to plug holes to save the metaphorical ship from sinking.

I learned a couple of key lessons about the world of work this year. First, when confronted with a problem, all too often the default action is to put a bandaid on the symptom and not treat the cause. Whether it was the financial bailout, the continued drama of GM, or the frenzied pursuit of cost reductions, it strikes me that we did not address the root cause. Until we do, there is a a great possibility that new leaks are going to spring up! The second lesson learned is related to the first. I sense a general weariness in the workforce. I often use the concept of “bad tired and good tired” when I work with client groups. Bad tired is that feeling at the end of a day after you worked your butt off only to know there is more where that came from tomorrow. It wears you down. A good tired is the same amount of energy, and often more, expended but with a measurable accomplishment. You can look in the mirror and say, “Today, I made a difference.” There is much bad tired out there.

My wish for the new year is that we all move beyond problem solving to achieving goals. We did what was necessary in 2009, but let’s learn from it. The chicken wire and duct tape fixes of 2009 need to be replaced with real, substantive change in our systems and real investment in longer term solutions. I am admittedly biased here, but one example is developing your people. Set a goal that every member of your organization produces greater return for their efforts in 2010, and then help them do that. A good place to start might be sitting down with each and every one of them and do some goal setting. Ask them what they would have to accomplish in 2010 to give them that satisfying, good tired feeling of accomplishment that comes from doing work that matters. Ask them what you can do to help them get there. Then make a plan, execute it, and measure it in progress gained, not problems fixed.

I wish all of you a happy and productive new year. We can do this. If we are to remain competitive in the world market, I believe we have to.

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Dear Mr. Immelt…Nice speech, but have you considered?

14Dec09

I know that in today’s 24/7 business world, there is little time to read. I recommend that you find ten minutes to read Jeffrey Immelt’s speech at West Point: http://www.huffingtonpost.com/2009/12/10/jeffrey-immelt-ge-ceo-era_n_387151.html.

There is a lot in the speech I applaud, especially his courage and directness. By some measures (which of course is part of the problem) GE could rightly argue they are our greatest corporation. His words have weight.

His speech was focused on the topic of what leadership means and what is necessary in the 21st century. He states unequivocally that one of the primary causal factors of today’s US economy is leadership’s meanness and greed. He takes pride in the 232 billion dollars GE has earned since he joined the company in 1982, but also understands there is a huge problem on the horizon when 25% of the American people are significantly poorer during the same time. He points to four attributes that need to change if this current generation of leaders can lead the recovery. Listen more, become system thinkers, motivate with vision and win through execution, and have affection for and respect people. You can read the details yourself; it’s a good read. I, of course, take some exceptions with his remarks.

I note in his speech that GE has reached out to an “eclectic group of thought leaders, academics, historians, and futurists” to try to get a handle on 21st leadership needs. Nice that they are listening, but significantly, I see one group not mentioned. The people in their organization at the execution level.

You rightly add your voice to the need for innovation, yet employees saw few innovative approaches to rationalizing costs. It still came down to layoffs, pay reductions, and demanding price concessions from vendors, who of course, had to layoff workers and cut wages to meet your pricing demands.

You left off one important trait in your fine list of four. Credibility. You’re a good speaker. But business has created a huge population of cynics who hear the words but see no alignment with action. Why should they believe you? You speak with pride about the 232 billion GE made. How many jobs were created? What growth was there in employee wealth compared to shareholder, or more alarming, executive wealth? You can’t lead without followers, and they have to believe it is a new day. Show them.

You are right on when you talk about system thinking. The single biggest fault I see in executives I work with is the inability to escape linear thinking. May I suggest that you back off hiring MBA’s with finance backgrounds? How about some MFA’s, some MEd’s, graduates in behavioral sciences, physical sciences? If you want those that can lead in times of ambiguity you need people trained to handle ambiguity, not spreadsheets.

I am being a little tough on Jeff Immelt, and I think, unfairly. He has a tough job trying to change the culture that more or less invented the idea of focusing on shareholder wealth. His remarks are courageous. His actions will determine whether it was from his heart or from a corporate speech writer.

Please, if you are an executive, read his words carefully. There is great discontent growing in the ranks of employees. You really do need to address it through a different leadership approach if you want excellence.

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Holiday gifts from the leader..the short list

04Dec09

Looking for the perfect gift for your employees this holiday season? One that fits tough budget restrictions? One they will remember? Here are a few suggestions for great do it yourself gifts they will treasure from their leader:

Hope. These are tough times for the workforce. Most won’t be able to spend what they have traditionally spent on their families this Christmas. They know that you can’t restore things back to the way they used to be overnight and that sacrifices need to be made. They would really love to hear from you where all these shared sacrifices are leading. They want to know what that future will look like. They want to be part of the pursuit of a better time and better place. You need to package this gift in a well crafted ambition, or vision and deliver it in person.

Essential truths. A well crafted vision delivered with sincerity may succeed in putting the organizational equivalent of visions of sugar plums dancing in their heads. However, they need to know this isn’t just dreamery. Think about giving them an honest review of the year, including relevant information about the market, revenues, prospects, barriers, and anything they may need to know that shows them their leader is giving them the straight scoop. Show them you know what you are dealing with and that you will work like crazy to competently guide them toward the vision.

Energy. Most leaders I work with don’t really like to talk about the energy crisis going on inside our companies. The fact is that many companies have pursued lean strategies to the point that people are stretched and quite frankly, tired. Many employees have turned to disengagement, going through the motions each day, just trying to hold on. There are two gifts you can give them to help them reenergize. First, inspire them. I get a fair amount of pushback from leaders I work with around this topic. They insist they will never be the “rah rah” cheerleader and they lack the needed “charisma” to inspire. If you can’t inspire, you can’t lead. Learn how. Quickly. Second, fuel the struggle with liberal doses of gratitude for a job well done. Make sure it is sincere and personal. No electronic holiday greetings please…real face to face thank you’s. One of my favorite clients is a VP of Operations at a large manufacturing company. He makes it a point every year to go to every manufacturing plant and every shift, walking the floor armed with candy canes, and personally thanking every employee. And he makes sure he knows their names.

None of these gifts are going to cause you fiscal distress. They will however demand you spend some of your time and energy. It really isn’t about formal company programs or emails from the CEO. It is about building that personal relationship with those that might choose to follow you. And giving them a reason to do so.

Happy holidays…..

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What if it was your job to find a CEO for GM?

03Dec09

Let’s have a little fun today playing make believe. Pretend for a moment that you are the head of an executive search firm handed a plum assignment. Find a new CEO for GM. There is great interest in the business press over who should get the job, so you decide to be personally involved.

You’ve been briefed well by the client and your own interest in GM has you thinking about the most important criteria in the search. You’ve ruled out most of the insiders because it is clear GM wants a new direction. A track record of building innovative businesses is a plus. Sensitivity to executive compensation issues is a key, since the taxpayer owns most of the company and employees (and former employees) of the company have made major sacrifices to try to keep the company afloat. You are leaning toward someone who has shown a history of building a customer centric organization focused on building customer loyalty. Although you don’t think the individual needs to come from automotive, they should have a strong manufacturing background as the current board has little expertise in that area. The candidate needs to inspire the workforce and excite the consumer. Although difficult to put into words, you want to recommend someone that can build a new, modern GM.

The first candidate you consider has these highlights:

The candidate has recently retired from a seventeen year stint as CEO of a technology/telecommunications company. During those seventeen years the company underperformed compared to others in the industry and the S&P 500. Trying to be fair, you do notice that he built a very BIG company. It was tough economic times.

That very BIG company is a major brand in telecommunications. Oh, and it was chosen by Apple, a company you admire, for exclusive distribution of the iPhone. They must be very customer centric. You google the company and find out that Consumer Reports rates it as the worst provider. You couldn’t help but notice all the rants calling on Apple to dump their exclusive relationship. Then there is that commercial with the maps….

You might be able to attract this candidate even though the compensation package is limited as part of the deal for the federal bailout. He doesn’t appear to need the money as his retirement package at his last company was $158 million. You find a small note that points out that the SEC had to force him to allow a shareholder vote on what was considered to be excessive compensation not in line with performance. Throughout his tenure at this company, his pay rose dramatically as he slashed 30,000 jobs.

You make a note that if this candidate was chosen, he will need some training. Seems even though he led a technology company, he doesn’t use email and does not use a computer. You want to be sensitive to any age bias, but you can’t help but notice the candidate is 68 years old. He is younger than Bob Lutz, another candidate being considered. You giggle a bit as you think maybe he would prefer your father’s Oldsmobile. You wonder what he drives.

He doesn’t have any manufacturing background, but when asked about this he said, “A business is a business, and I think I can learn about cars. I’m not that old, and I think the business principles are the same.” Maybe so. You note Mulally at Ford didn’t come from a car company. He did come from a company that manufactured airplanes. Not a plus for this candidate.

Something else is bothering you. When you think of a new GM, you think about a modern company..like Google, like Apple, like Cisco…. As you set this resume in the “probably not” pile, you think that rebuilding GM to be AT&T couldn’t be farther from what the company needs. You’ll draft a nice “thank you for applying” letter to Ed Whitacre. Give him credit for his career, but let him know that you are looking for something a bit different from what he offers. Oh, and you will keep his resume on file.

You reach for the next resume when your administrative assistant tells you there is a call from the White House. Seems Mr. Rattner wants to talk to you about Mr. Whitacre.

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Another one bites the dust…GM CEO lasts eight months

01Dec09

I don’t know what to think. GM’s CEO, Fritz Henderson announces his resignation eight months into the job. Ed Whitacre, the Chairperson, is stepping in as the interim CEO. Ed Whitacre of “Whitacre, New GM Chairperson: “I Don’t Know Anything About Cars” fame. Ed Whitacre, formerly the head of a technology company, AT&T, who doesn’t know how to email or use a computer. Ed Whitacre, formerly of AT&T, the company Consumer Reports named the worst mobile provider in the nation.

I used to work at GM. I still have feelings for the company after an amicable divorce. There are a lot of good people at GM dedicated to winning again. I exchanged text messages today with one of their exec VP’s I use to work for who told me he loved working for Fritz. I don’t know what to think.

Here is the best I can do. I think that GM ought to consider these things in their search for a new GM:

It won’t bother me if they go outside the industry and get someone that hasn’t held an executive post at a car company. Mulally at Ford seems to be working out just fine. Of course he has one of the best, Bill Ford, riding shotgun. Just make sure they are passionate about cars!

Think young. Henderson was 51. I would shoot for someone in their 40’s. Maybe younger. Just what has age and experience done for you so far? You have a chance to blow apart the old culture, which is necessary if you are going to make it.

How about a woman? They buy most the cars!

Stay away from former GE execs (see Nardelli, Wendt and McNerny)

Stay away from Matt Millen (stranger things have happened and I am still upset about the low standard the Ford’s set for performance on the Lions)

You’re a car company. No CFO’s please. Look at your history, finance guys screwed the company up. And it is not beyond my thinking to believe an MFA would do better than an MBA.

You’re also a technology company. How about checking out Silicon Valley? (personally I would love John Chambers, an Ohio kid, but don’t think he would ever leave Cisco)

Make sure they are multilingual. Preferably Chinese, but at least Spanish. Or maybe he/she should be Chinese, or Hispanic.

If you insist on an old guy (heh, I am old, I can get away with that), how about checking out Jerry Hirshberg? Built Nissan Design Institute from the ground up. Father of the Infiniti. Renaissance guy…world class painter and clarinetist. Acknowledged expert on design. And oh yes, former head of design at Buick. He didn’t work out there. Probably the biggest reason to bring him back. By the way, he knows how to use email.

And that is what I think.

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Time to Increase Wages??

30Nov09

I like to start my work week with a quick review of the business press. One line I read about the leadership development efforts at IBM struck me.  An employee involved in their development program which includes lateral assignments for experience said this, “I don’t want to be groomed, I want to be paid.”

 

I am a big fan of giving top talent an opportunity to experience a wide range of organizational assignments. I have written before about my concern that currently too many financial people are running companies with little or no understanding of operations, sales, research and development, human resources, and other critical aspects of business. I honestly believe this has hurt decision making at the top. I praise IBM’s efforts to move their talent around to build a broader view. It is part of a formula for success.

 

However, we should hear the voice of this employee.  The intrinsic rewards of work that offers interesting challenges, opportunities for achievement and recognition, and professional growth are still powerful motivators. They are not be enough. People must be paid equitably or they become dissatisfied and their results show it.

 

It has been over forty years since Frederick Herzberg published his findings on motivation. (‘One more time: How do you motivate employees?’, Harvard Business Review, Sep/Oct87, Vol. 65 Issue 5, p109-120).  He pointed out the negative affect of “dissatisfiers” on employee performance. Compensation is an extrinsic reward, and one that increasingly matters, if people feel they are not being paid equitably compared to others.  Companies have taken some extreme measures to cut labor costs to boost their profits. Let me be one of the first to say, enough is enough. Our companies’ leadership must be smart enough to recognize that changing one cell in an excel spreadsheet (labor costs) does not equal long term success.

 

Like the employee cited above, many talented people are bombarded daily with news of excessive executive compensation. Executives are being rewarded for improving the bottom line at the expense of their employee’s livelihood. In some cases, executives are being rewarded for a loss in performance! An exaggerated concern for shareholder wealth has employees openly questioning why they should continue to sacrifice for other’s gains.  Wage and salary administrators need to provide predictive data to executives on what the real cost of wage reductions are instead of chasing the short term numbers. Ultimately, talent is going to move to organizations that reward their efforts the good old fashioned American way….more dollars. If companies don’t act soon, they may find themselves with a mediocre workforce paid a mediocre wage. I don’t think it is worth the gamble.

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Leaders…it’s not the turkey, it’s the thanks

24Nov09

Thanksgiving…a time to reflect on all the things we are grateful for.  If you are a leader in your organization, that means the people that show up each day and contribute their efforts.  This year has been tough for many us. Perhaps you can’t afford the luxury of passing out turkeys, but never underestimate the value of a sincere, one to one, thank you.

In the Leadership Challenge, based on the book by James Kouzes and Barry Posner, we talk about Encouraging the Heart as one of the five practices exemplary leaders habitually do. Whether it is the individual thank you for excellent work, or the group celebration, we all benefit from knowing that what we do matters.

Look around your workspace.  Odds are, you will see something there that you received as memorable recognition. I am not talking about the box full of certificates, plaques, or company logo’ed key chains.  I am talking about that really meaningful symbol that lifts your spirits whenever you look at it. When you look at it, you recall the moment and the sentiment behind it. It refuels you. It matters.

My guess is that many of you have had to make remarkable demands of the workforce, adding even more to full plates, to keep margins above the water line. I can tell you that people are tired. Even on the verge of burnout.  That thank you offered their way fuels the battle for another day. They may not need recognition. But, like you, they want it.

Here are a couple of practical suggestions:

• Buy yourself some note cards with matching envelopes.  Drop a note in your own hand, recognizing a specific contribution for each team member and a hearty thank you.

• Find the time (just do it or it won’t happen) to sit with a cup of coffee with each employee and thank them face to face.  For added power, ask them what you can do as a leader that will help them achieve their goals, or what you need to stop.

• At the next staff meeting (hopefully before Thanksgiving) park the normal performance and budget review, and instead give your team a presentation of all the things you are thankful for they have produced as a team.  Trust me, your business will survive a day without the normal staff meeting.

• Ask them to share their stories with you of what they are most proud of during the year.  Then share those stories up the organization structure.

You can never go wrong with the hearty handshake accompanied by a look the person straight in the eyes “thank you.”

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A day in the consulting life

20Oct09

I spent much time yesterday on a conference call with consultants from every continent talking about what we are seeing in our client’s response to the economic downturn. It was stimulating and useful. I was taken with how similar the challenges are around the globe. It also struck me that there are opposing forces making the solutions so much more difficult. Executives have some tough choices to make.

In this complex world of the new normal, our clients are looking for advice and counsel on short term issues.  With only a couple months left in the calendar year, many want help on ideas to motivate their employees to reach year end goals. Solving cash flow problems is also a theme. Real world stuff. Any consultant worth the price of the nail that holds their shingle up realizes the urgency around these short term issues. Pardon my rant here, but there are too many consultants out there that never felt the wrath of missing schedule or budget and do not understand the pressure clients feel. Fortunately, none of them were on the conference call.

The opposing force is short term measures have long term costs. The urgent measures being taken to improve margins hurt future brand equity if the customer perceives cutting costs are more important to you than customer satisfaction. Reducing negative cash flow by cutting employment costs ends up being a cash flow problem for employees who have had quite enough of the more for less mentality. Pushing sales to hit numbers often results in price cutting to win the bid.  When a salesforce begins to treat their product or service as a commodity they lose the ability to sell value added solutions. That, of course, affects future sales, and brand erosion.

Tough stuff.

I have two meetings with clients today. Make that three…an email just appeared from a client with an urgent problem. Very often these meetings are about helping the client sort things out. Sometimes it is telling them their baby is ugly. It is offering a solution. If I have one. If I don’t, it is helping them find someone who might. It is being empathetic, without being too sympathetic. It is about asking questions more than giving answers. My gig is all about engineering human performance, that talent thing. Any advice and counsel I offer will be through that lens.

It will also be about priorities and the urgency surrounding them. It will be about thinking five steps ahead and the impact of the now on the then. It will be influenced by the current research that shows that employee trust in their leadership’s ability has gone from 79% in July of 2007 to just 22% today. It’s about my simple logic that says if employees have no faith in you, shareholders and customers will soon follow.

It’s about wishing I was smart enough to know all the answers and grateful that I realize only the client can provide the answers.  I need to think carefully about the questions. With apologies to Dylan, sometimes you do need a weathervane to know which way the wind blows….

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