Category Archives: Human Resource Management

Dachshund Leadership Lesson

CEO Leadership, Motivation

Oscar following nose

Oscar is eleven-going-on-twelve, sweet of disposition, good with other dogs, tolerant of all people, and about as easy to lead as a chicken. We often walk the Indian Creek Trail just below our home, and I’ve finally decided to take him off the leash – to cease pulling him away from every malodorous scent, and to let him move along at his own pace while I walk ahead, stopping every few strides to encourage him to catch up.

During a recent meander with Oscar, thinking about how poorly I was performing as a leader of a dog, a book I read a few years back (Drive (by Daniel Pink), popped into my head. I remembered that at the heart of Pink’s book was the theory that, for work that requires any form of creativity, intrinsic motivation is far more effective than extrinsic motivation. He further argues that the three nutrients for intrinsically motivated work are autonomy, mastery and purpose.

Not surprisingly, research reveals that most of us really want a high degree of autonomy in our work. We don’t want to be told exactly what to do and how to do it and when to do it. We generally want to understand the desired result and then, after considering how other successful people have approached it, have the freedom to use our own thinking and skills to improve on that process. Taking Oscar off the leash gave him increased autonomy. He got a little better at moving down the trail, and our walking relationship became less antagonistic.

Most of us want to grow in the mastery of our work. This begins with mindset, a belief that we can get better. Mastery requires effort along with the realization that, no matter what the challenge, we can always get better. I’ve concluded that mastery is at the core of my disconnect with Oscar. He simply doesn’t see a reason to master trail hiking.

Finally, intrinsic motivation is enhanced when our work has purpose. Studies have shown that, when one’s job is intrinsically meaningful, the bouts of anxiety or depression are generally few or nonexistent. You can be the judge, but Oscar doesn’t look anxious or depressed to me.

OscarPortrait

Using Oscar as an example (which makes me shudder), one may conclude that, if the only goal is to avoid Oscar becoming depressed, then it doesn’t matter that my purpose (getting to the end of the trail and back) and his purpose (smelling every stick, leaf, bug, and rock) are not aligned. 

But these contrasting purposes are not quite what Pink had in mind. And while he may not argue for perfect alignment of purposes, he would certainly argue that he is using “purpose” in the sense of “meaningful”; that, while autonomy and mastery will foster intrinsic motivation, adding a higher purpose to the mix will inevitably optimize the results of that motivation. This third leg, the sincere belief that our work is, in some way, bigger than us, completes a strategic triad that undergirds the human behavior most employers are seeking.

So, as CEO, you may want to think through how your organization supports intrinsic motivation. And then, if you want a more complete view, ask your employees.

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Want What You Have

Attitude is everything in business.Having spent over four decades in the world of business, I find it particularly interesting to observe general philosophical truths playing out in that world of commerce.

I recently bought a copy of a book based simply on its title: I Love Capitalism!  I was not familiar with the story of Ken Langone, the author, and I was ripe for a stout defense of capitalism, in an era where I seldom here much praise for our democratic capitalistic system.

While I enjoyed the stories Ken laid down during the first half of the book, I was concerned this might simply be another “let me tell you how smart and wealthy I am” autobiography. But I kept reading and, although Ken is neither shy nor particularly humble, his stories eventually drove home some valuable life lessons. 

One such lesson concerned a large U.S. company where Ken was a board member, and a horse race at that company among three top executives seeking to become the next CEO. Ken decided to recruit one of the “losers” in that horse race to take the reins of a company whose startup financing Ken had arranged years earlier and where he still sat on the board. Ken’s company, by the way, was producing revenues of $90 billion at the time, so this was a big job for whomever he recruited as CEO. He eventually brought one of the “losers” on as CEO and Ken’s company performed well financially for the next several years. 

The “loser” was very well compensated in the form of both stock options and annual salary. At a time when the Enron and Worldcom scandals were making headlines and the media was shining bright lights on all boardrooms with regard to excessive executive compensation, Ken and the board started looking at creative ways to improve the appearance to the outside world of that generous compensation package. When they attempted to discuss some of those variations with the “loser”, he would have none of it. Ken eventually tumbled to the fact that the “loser” had never gotten over losing. In spite of his hard work and accomplishments at Ken’s company, he could not get past having lost the CEO race at his prior company. In the words of Ken, “He lived in a permanent state of feeling ripped off. Just like a guy who can’t get over being dumped by a girl…” Probably no pay package would have been generous enough for him to put that past behind him. 

I can think of a couple times in my career when I didn’t really want what I had. How about you? Consider the following possibilities.

Maybe, in spite of having great operating people, you decide it’s time to recruit a high powered Chief Operations Officer, and you find the perfect candidate, and you think you have sold that candidate on joining your organization only to be turned down at the eleventh hour. Then you lick your wounds, bemoaning the fact that you’ll never find another perfect candidate, and you totally ignore the long-term, high-performing, loyal operations staff who have helped you build the company.

Or maybe you invest hours and hours pitching a huge potential customer, only to lose to a competitor, and now you’re burning hours in recriminations of what you could have done differently – all this while your present loyal customers are suffering from lack of your attention.

Or maybe you sell your company for enough money that you no longer have to work and you can spend your time and money doing almost anything you want, but, looking in the rearview mirror, you find yourself pining away because you think you should have held out for a higher price.

Can we agree that none of these scenarios is healthy…or even rational?

Strive to want what you have. Attitude is everything.

Competition

Competition within business organizations

Milo Competes at Lacrosse

Competition. Where does it fit in your company culture?

It might be helpful to step back a couple paces and consider where competition exists within organizations in a healthy, thriving American culture? How about on a sports team? Within the military? In school? Within a family? In a government organization?  A hospital? A medical research team?

Most reasonable people seem to conclude that competition is a good thing under certain circumstances and a bad thing under others. But the general concept is contentious, more so than in the past. And I have witnessed the swing of the pendulum over my lifetime, with an increasing number of people finding an increasing number of circumstances under which they believe competition is not good.

I began my business career with GE, and I was reminded of the competitiveness of that environment recently when I listened to a Freakonomics podcast in which Michael Dubner interviewed Jack Welch, retired CEO of GE. The following is a verbatim, unedited, transcript of one of the points that Welch made during that interview.

Look, differentiation is part of my whole belief in management. And treating everybody the same is ludicrous. And I don’t buy it. I don’t buy what people write about it. It’s not cruel and Darwinian and things like that, that people like to call it. A baseball team publishes every day the batting averages. And you don’t see the .180 hitter getting all the money, or all the raises. Now that’s the purest form. Athletics is the purest form of differentiation, because it’s public. Everybody understands it, the fans understand it, the people understand it. Big business is more subtle and it’s more qualitative. So the precision isn’t there to differentiate. So judgment’s important. But you don’t win with a gang of mediocre players in business or in baseball.

Welch believed and clearly still believes in “radical candor” when it comes to evaluating individual performance, and in rewarding the best performers while helping the worst performers find a different career.

Where do you stand on competition within a business organization? Is your position significantly different when it comes to non-business organizations or communities? Why not bring this up for discussion the next time you socialize with some of your business peers? Better yet, share your thoughts below.

A Big Fish in a Small Pond?

small business hiring corporate manager

Salmon Coming Home

Not long ago I read John Dini’s excellent blog post on importing a manager from a large organization into a small company. When I recently heard a tour guide comment on sockeye salmon migration, it brought to mind John’s exposition. Let me explain.

The tour guide had declared that as the salmon return from the vast ocean to the stream where they were hatched, they must make the transition from salt water to fresh water. He highlighted the fact that, as they entered the brackish waters near the mouth of the river or stream, they lingered – maybe days, maybe weeks – allowing their body to make some important adjustments to their new environment. [Although I have no empirical evidence to offer, I suspect the percentage of salmon making it all the way home has increased since the advent of those navigational apps for their cell phones. I mean, really, how do they find their way back? But I digress.]

It’s been my experience that a significant percentage of the Corporate Migrants decide to return to the sea, or are asked to find another body of water in which to swim.

As a business owner, you may have several good reasons for wanting to bring an experienced large-company person into your fold. Their background in systems, in planning, in structuring, and in thinking broadly about crucial decisions can be invaluable to a small business management team. If you are positioning the business for your own eventual exit, they bring an outside perspective and professional expertise that can be very attractive to a potential buyer. However, in the words of Paul Simon, “…a man hears what he wants to hear and disregards the rest.” True of business owners, be they men or women. So don’t disregard the risk that the imported large catch can also be ineffective or even disruptive.

Like salmon, some who leave Corporate America are indeed returning home. They see small business as a better fit for them, for whatever their reasons, and they are correct. Others, however, are simply looking for a resting spot prior to returning to the sea. Your recruiting, hiring, and onboarding processes need to take this into account. Here again, you will likely be tempted to hear what you want to hear and disregard the rest because you consider the candidate such a valuable find. In truth, you may be flattered that they would even consider coming to work for you. Get past that. Dig deep to try to determine all the motivations for the candidate’s interest in your company.

Then, if you both agree to move forward, bring them aboard in a manner that allows them to acclimate. Both the migrant and the organization need time to make adjustments. They will probably see many areas where changes would strengthen your organization. But they also have the potential to damage a healthy culture in the process of pushing for change. You are the filter through which their initiatives must pass. It’s your job to help orient the new hire to a significantly different environment. If, after a fair amount of time in your brackish waters, they are not meshing, it becomes your job to return them to the sea. By that time, they have probabl come to the same conclusion, even if they haven’t yet admitted it to themselves.

I’m not saying you should never bring a Corporate manager into the fold. I’m saying be diligent if you do.

What Will You Tell the Kids?

“So why did you fire Tricia, Dad?” Trevor knew Tricia’s son, and the story was already circulating at school. Pete didn’t respond immediately. When he did, he immediately felt that his answer was inadequate.

“She just wasn’t up to the job,” he finally said.

“I don’t know what that means” said Trevor as he headed out of the room.

That’s where the conversation ended. But Pete’s rethinking his decision had only just begun.

When you have faced a really tough decision in your business, have you ever considered how you would explain that decision to your kids?

A few CEOs find crucial decision-making relatively easy. Almost nobody finds making good crucial decisions easy.

If you want to not only improve your decision-making, but also improve your mood following a crucial decision, you might try applying “the kids test”. Regardless of the current age of your children, test your tentative decision by thinking through how you would explain the decision to your kids, once they have attained the age of reason (for some that’s about 12, for others, more like 42). Apply it to virtually all your tough business decisions. The circumstances surrounding my opening example drag the son into the conversation in a way that does not normally occur with your business decisions. That’s not important. Try forcing yourself to boil down your explanation of any decision to language that an innocent who does not work in your business would understand.

The reality is that your kids are not likely to ever ask you anything about your business or your career. OK, occasionally one will ask, but only when they think you’re on your deathbed. But that’s not the point. The mental exercise I’m suggesting can be an effective tool for you.

Try it right now. Pick a tough decision you’re in the process of making and implementing. Find a place where nobody except you can hear you, and explain – out loud – why you have made the choice you have made. Critique your own explanation, and do it over until you’re satisfied that your defense of the decision is fundamentally sound.

Let me know how it goes.

The Case of the Renegade Case

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I recently took a trip, several hikes, a brief leave of my senses and, finally, matters into my own hands. That’s a lot of “taking”, during which I learned a lesson about delegation. Lots of business leaders struggle with “the big D” and my sharing my personal experience might light a path or reduce some stress for you.

My wife (call her Karen, since that’s her real name) and I took several days to relax at a resort 130 miles from our home. The morning of our return trip, we packed the items we would be bringing home from the condo, hopped in the car, smiled at the blue sky, and had a series of really good conversations over the next two-and-a-half hours. Got home, unpacked, and then…are you familiar with that sudden realization that you’ve overlooked something really important? For my body, it manifests itself north of my neck. Kind of a numb feeling as my face flushes with reality setting in. Kind of warm too, but not in a good sense. I realized I had left my packed briefcase in the dining area on the floor next to the table and invisible from the front door.

I always travel with a briefcase. Always have. Can’t stand to be without useful files and magazines – not to mention my iPad – on any trip. Suffice it to say that this briefcase on this particular trip had not only interesting stuff inside, but also important and sensitive information…and did I mention my iPad?

Within minutes, I was on the phone, confirming that Housekeeping had recovered my briefcase. I quickly made up my mind to retrieve it the next day. Karen looked at me like I had just volunteered to cook dinner (i.e., in disbelief). Why would I travel 260 miles the next day, knowing I am still rebuilding my body from a back injury that can be exacerbated by sitting for long periods of time in the same position, only to personally pick up a briefcase that could easily be overnighted to me?

At first, I couldn’t explain (at least not clearly) why I had already decided to personally retrieve the briefcase. She ignored me, called the resort, talked with Guest Services, and got them to agree they could retrieve the case from Housekeeping and get somebody to take it to the Post Office. When Karen persuasively told me this, it made some sense. I really wanted some of the contents ASAP, and if the resort reacted quickly, I could have them in my possession within 24 hours. So I called Guest Services. Kelsey explained that she was trying to reach the lady who drives the van to pick up and deliver guests as well as the mail, and that she was hopeful that Cathy would return her call soon. This was about 3:30PM on a Friday and I was aware that most small town Post Offices did not stay open all night. Long story short, within 30 minutes I learned that the briefcase could be delivered to the Post Office the following morning and I was advised I could call the Post Office directly to discuss overnight delivery or other special handling for returning the runaway briefcase.

What had started to seem like a sensible approach less than an hour previously now gave way to my overwhelming feeling that I had to personally get this thing done.

Can you identify with that?

I have worked with several hundred small business owners over the past dozen years, and the tension between Control and Delegation is almost always a stress point. Very few find it easy to delegate important tasks, even though they are aware that a successful, growing enterprise requires lots of delegation.

What I realized in “the renegade briefcase” caper is that, whether it be a personal or a professional challenge, the decision to delegate rather than maintain personal control involves more than simple reason and trust. It also involves instinct…your gut. And, as any nutritionist worth her weight in tofu will tell you, your gut is very important. Going against your gut can cause extreme discomfort.

My instinct that Friday became overwhelming. The world would not end if I did not have that briefcase back in hand for three or four days. But it would have been VERY inconvenient, and my world would have been filled with stress until I got it back. I would be counting on at least three different people, more likely five or six, to get the communications straight and to protect the contents of that case.

This episode caused me to reflect on a number of discussions with CEOs regarding their resistance to delegate certain responsibilities that seemed to me at the time to be no-brainers. For example, I once had a client who ran a $50 million business who insisted on opening all the incoming mail, every day. I now have a better appreciation for his gut.

This story is not a plea for you to delegate less and work harder than ever to grow your business. Rather, it’s intended as a stress reduction aid. You don’t have to justify driving 130 miles one-way to your wife, to pick up your briefcase. You don’t have to justify opening all the mail every day to your business coach. If you gain significant peace of mind, in addition to the certainty that the job will be done in the best possible way, then it’s OK to maintain control and do it yourself. Heck, if you simply enjoy writing software code or installing systems or stocking shelves, allow yourself some time to do that fun work occasionally. It’s your business, and it’s not supposed to be 24/7 stress.

Once you pick your spots, once you select the task or tasks you will personally handle, allow any ancillary benefits to accrue to help justify your decision – and provide additional peace of mind. In my case, seeing an April sunrise in Central Oregon was a big plus, in addition to the fact that 90% of my drive time was either through piney forest or up and down high desert buttes. I’m not used to that type of scenery, and I hope I continue to hold it in awe.

If you are willing to share your own thoughts on Control versus Delegation, please do.

Learn from the Presidential Debates

Tis the season for some folly – i.e., the presidential debates have only just begun. Those of us tuned in for some or all of the show are looking for information or entertainment or both. If you run a business, I would suggest that viewing can also offer an education in interpersonal communications.

Just like the general population, some political candidates are naturally outgoing, at ease as the life of any party. Some are naturally thoughtful, not particularly loud but, as with the EF Hutton of old, when they talk, people listen. Others are naturally contentious, reveling in a good fight more than a civil exchange of ideas.

The truth is that many of the voting public want a president who blends all these personality characteristics appropriately, depending on the circumstances. But that’s a discussion for a future blog.

When it comes to debating, each participant must consider how well their natural behavioral tendencies will serve them. They will become a chameleon during the debate if and when they believe something other than their natural approach is required.

So, how is this educational to you?

Watch a few debates. Note which participants seem to be naturally aggressive and which do not. Note who comes across as thoughtful and prepared, and who does not. Compare the candidate who thinks well on their feet and moves smoothly with the ebb and flow of the discussion, with the one who appears to be cautious and a bit awkward when the subject changes.

The contrasts I’m raising are in no way intended to imply that any one trait is preferable to another in a President of the United States. Again, that’s a topic for another day.

But, if you take the opportunity to relate your debate observations to your own behavior in your organization, it should be educational. You’ll recognize more clearly your own style. You’ll recognize that you are more credible and more relaxed and generally more effective when operating within your natural style. (Because you’ll notice that anyone assuming the role of chameleon in the debate – i.e., stretching to be somebody they are not – turns an unattractive shade of green or brown.) You’ll realize that when you feel forced to modify your style significantly, your stress goes up and you become less effective interpersonally. Or worse, you embarrass yourself.

Next time you watch a debate, notice how uncomfortable an aggressive candidate appears to be when they attempt to become thoughtful and low key. Notice how uncomfortable a contemplative candidate becomes when they attempt to respond to confrontation with confrontation. And make a note to self that you are much more authentic when you are able to stick close to your natural style in every business situation.