Archive for the ‘leadership’ Category

Why “Undercover Boss” is dramatic, and why that’s a bad thing for business

Thursday, February 25th, 2010

7-11 undercover bossI finally got a chance to check out “Undercover Boss” this week, after being curious about it since first hearing about it at the Super Bowl. It follows many reality show conventions, including dramatic music, montages and strategic repetition (I heard, “Those items are supposed to be going to charity!” at least three times).

Why, though, is “Undercover Boss” dramatic? In short, it’s based on an assumption that big-company CEOs are completely disconnected from the front lines of their businesses. Only by the CEOs being out of touch can these shows create the surprise and drama they depend on. Seeing Joe DePinto, CEO of 7-11, struggling to make coffee is funny, but it’s also telling. Selling coffee is how 7-11 makes money. According to DePinto, the store he works in serves 2500 cups per day. DePinto spends his days attending meetings and reading reports, not making coffee, and it shows.

I saw a terribly sad example of the “undercover boss” last week while watching “The Hurt Locker.” One of the soldiers meets with a psychologist colonel who is counseling him for his stress-related illness, caused by his daily encounters with IEDs and their carnage. The soldier teases the colonel that he doesn’t know what it’s like out on the streets. The colonel replies that he’s been out on the front lines earlier in his career. One morning, surprisingly, the colonel shows up and offers to accompany the group on their daily missions. The tragic ending of this amazing scene really struck me and pointed up in an extreme way the costs of the out-of-touch boss. How can one lead when he has no idea what it’s like where the rubber meets the road?

Related posts:
Business Book Hall of Fame: War & Peace
Time to start listening to front-line employees
A method for gathering and using insight from front-line staff

September 2009 Carnival of Trust: Nine ways of looking at trust

Monday, September 14th, 2009

This post is part of Charles Green’s Carnival of Trust, a monthly review of blog entries discussing elements of trust in relationships among people and companies. Thanks to Charlie for inviting me to host this month’s Carnival.

What is trust? Or, more directly, what are the conditions for trust to be present, between a customer and a company or between two companies? This was a theme of several great blog entries this month. To Ron Ashkenas in the Harvard Business Publishing Conversation Starter, simplicity creates trust. He writes: “When you create complicated explanations of products, services, and contracts, customers often feel that you aren’t being truthful about what’s being offered.”

In a selling situation, a salesperson’s knowledge and insight are essential to creating trust, according to Dave Brock. “If the customer doesn’t know, immediately, that you can contribute to what they are doing, they will be reluctant to engage in any kind of discussion with you.”

Roger Dooley of the Neuromarketing blog writes that fairness and transparency are essential to trusting and effective relationships between partners and that engaging in those behaviors (which are rare indeed in many business dealings) can yield better profits than every-man-for-himself negotiation.

Another dimension of trust is allowing autonomy – the ability to loosen the leash a bit and allow employees to make their own decisions rather than the system deciding for them. For example, deciding what material they need to access, even if it’s outside their everyday needs. Bruce Schneier discusses the ineffectiveness of “role-based access control” and argues for a system that sets employees’ access rights but allows them to override these controls when they decide it’s necessary. These escalations are closely audited and inappropriate accesses are penalized. In a world where companies are logging keystrokes to “ensure” remote workers’ productivity, Schneier’s proposal is welcome indeed.

A warning to companies reinventing themselves: merely acting differently can impact the trust their customers have in them, according to Lewis Green in his post, “Social Strategies Grow Out of the Culture, Not the Tactics.” Writes Green, “When customer service is outsourced overseas and customers perceive a decline in their experience, people conclude that efficiency and cutting costs are more important than customers.”

Being able to balance a corporate strategy with the need and perceptions of customers is necessary for trust, as well. So writes Bob Sutton about the dust-up caused by Wal-Mart creating an imitation Girl Scout cookie for sale in its stores. (I posted earlier on Sutton’s post, here.)

Wally Bock talks about the unique and rare breed of trust between an employee and his/her boss (”How Do I Trust Thee?“). To Bock, a boss must be willing to stand up to his own management and defend/protect the employees who work for him. Without this, trust is nonexistent. This post made me think of my management experiences: how often did I stand up for my employee, and how often did I find it easier to agree with my boss about things the employee should do better?

Indirect means of building trust are necessary when your product is intangible – when you’re “selling the invisible,” writes Jorge Lazaro Diaz. Doctors, for example, can build trust in patients by listening to them, showing care and concern, and running an organized office. Patients see these behaviors as proxies for what they’re really in the market to buy, but what’s hard to measure in advance – curing what ails them.

And to wrap up, remaining on the subject of doctors, Scott Eblin mines a New York Times article about a palliative care specialist for leadership lessons. Dr. Sean O’Mahony talks to patients who are dying. He is honest, clear, caring, and curious about his patients’ feelings. He also keeps a level of detachment, preserving his emotional reserves for other patients and his own needs. In this case, passion does not promote trust, it can damage it.

(Thanks to Ian Welsh for collecting an excellent batch of posts to choose from.)

To motivate front-line employees: don’t just thank them, use their insights

Wednesday, August 5th, 2009

Sylvia Ann Hewlett blogged at Harvard Business Review that leaders need to inspire lower-level employees. She writes:

…No one succeeds alone, which is why all leaders must find a way to pollinate the workforce with their values, ideas and enthusiasm. This is what keeps businesses humming, especially during a downturn.

Some leaders inspire the masses via the grand motivational speech. Others via one-on-one conversations. At Time Warner, CEO Jeffrey L. Bewkes held a series of skip-level lunches with ten to twelve high performers that typically had little or no access to him. He spent two unscripted hours talking about his vision and answering their questions. Employees who attended Bewkes’ lunches reported feeling more “confident in the company” and developed a new affinity for their chief.

Whatever vehicle leaders choose to use to reach out and inspire employees at local levels, their talk must have teeth. Don’t spout hyperbole — “Great job” or “we can do it!” Instead, serve up concrete, achievable goals. Listen to people’s problems and offer real solutions. Mentor by sharing your own lessons learned, celebrate teams’ efforts and reward tangible achievements. Even a simple “thanks” goes a long way when delivered from on high.

Each week at furniture designer Knoll, president and COO Lynn Utter emails four senior managers and asks them for the name of one person on their team who has been exemplary. Utter then calls each person to thank and congratulate him or her for a specific accomplishment. Utter is as time-constrained as the rest of us but says that if she cannot make four phone calls a week to acknowledge people’s good work, then she is not doing her job

Hewlett is right–inspiring the troops is an important leadership task, especially in tough times. But my reaction on reading this prescription was, “Ugh, more top-down thinking.” In other words, everything’s up to the leader–that “affinity for the chief” and thanking employees makes a company better.

How about this idea instead? Let’s forget about CEO Bewkes for a moment, and focus on making the work more fun and rewarding for the 87,000 people who work for Time Warner.

Gary Hamel discussed this idea in his recent book “The Future of Management.” In it he pointed out how Toyota is able to leverage the creative thinking of all its 300,000 employees through means like the Toyota Production System. This benefits the company by ensuring a constant stream of innovation, and the employees by making the workplace a more rewarding place to spend time.

I am focused on one particular group of employees–those who interact directly with customers. This includes customer-service reps, retail clerks, bank tellers and account support staff. It is a group with tremendous insight, and a group that’s held in low esteem in companies I’m familiar with. To borrow a phrase from my friend Matthew Achak, “Nobody listens to the reps.”

They sometimes are not even allowed internet access.

This is just wrong. These groups occupy a unique position in the company. They hear the unvarnished truth from customers. Their stories, rather than being ignored, should be nurtured and collected. Everyone else in the company should read them and absorb the lessons (especially the leadership). They should be primary inputs to strategy, marketing and product development. The best stories and best storytellers should be acknowledged and promoted.

Companies should focus on something like this, instead of sending their CEOs around on motivational tours or making four calls per week to exemplary employees.

Increasing employees’ sense of meaning and personal value in their work. Now that’s leadership.

Related posts:
Time to start listening to customer-facing employees
On “The Future of Management”

A Taking-Good-Care-Of-Employees Story

Friday, March 13th, 2009

I thought this would be a nice item to post on a Friday the 13th. Amid the news of layoffs, downsizing, Chapter 11, Ponzi schemes, etc., there are stories of companies working hard to take care of their employees. (It may not be surprising that these tend to be smaller companies.)

This company is A & L Doors out of Columbia, PA. Its General Manager & “Chief Health Officer” is Mary Loreto (disclosure: Mary and I used to work together). In the latest edition of the Lancaster County Chamber of Commerce newsletter, Mary outlines the steps her company is taking to see its employees through these stressful times, in part:

It is our intent to keep our employees positive in a negative economy and one way we are attempting to do this is to promote healthier living and focus our efforts on employee physical and mental health.

We kicked off our year of healthy lifestyles with our very own A&L version of “The Biggest Loser.”

Twenty-six out of our 40+ employees (and some spouses) took the challenge to lose weight and live a better life…. Each week the “biggest loser” is rewarded with a healthy living prize to help build and maintain momentum. The contest will run for 12 weeks and the follow-up maintenance program is already planned.

We have a “gym” set up in the back of one of the warehouses housing many different machines, free weights and cardio equipment. This gives our employees easy access at no cost to add the important aspect of exercise to their weight loss plan. We also provide daily healthy updates and menu ideas…

We are committed to not only “growing our business strong” but to keeping our valued employees healthy and happy so they can participate in the lives of their families and in the community, and bring good strong positive attitudes to their jobs and our customers.

This is a rare story in this time of bleak news from all fronts. Thanks for sharing it, Mary, and good luck with the contest and your business.

(Photo from dplanet via Flickr creative commons)

One of the world’s most dangerous jobs: change agent

Friday, January 30th, 2009

This article from Booz & Co’s “Strategy and Business” will send a chill up your spine. The article, “Stand by Your Change Agent,” by Stratford Sherman and Marisa Faccio, describes the results of a survey of 84 change initiatives between 1995 and 2005.

The initiatives themselves were successful, in the main: 85% met or exceeded the goals set out for them.

The leaders, though, didn’t fare as well. Sherman and Faccio write: “Some 70% of the executives who led these major transformations went unrewarded, or were sidelined, fired, or spurred to leave.”

The authors go on to describe types of companies at different levels of performance and how the change agent role is very risky in all but the very strongest companies. My take: large-scale changes disrupt the organization, stir up resistance, much of which gets focused on the change leader. If the change fails, the consequences are self-evident. If it succeeds, however, the pain endured in achieving it takes a toll on the person running the initiative.

If you’re considering taking this role on, do it for the experience, the resume fodder, and the feeling of accomplishment if you’re successful. Don’t do it, however, for the recognition of your peers and leaders. Chances are, that won’t be coming your way.

Getting out the stories of Burmese prisoners–an heroic feat

Thursday, November 13th, 2008

George Packer’s Interesting Times blog from The New Yorker yesterday discussed Human Rights Watch’s honoring of a Burmese hero, Bo Kyi. Mr. Kyi had been held as a prisoner by the Burmese government, enduring the brutalities of that unique brand of confinement. Upon his release, Mr. Kyi moved across the border to Thailand and founded an organization, Assistance Association for Political Prisoners in Burma, the mission of which includes “report[ing] on the military regime’s oppression of political prisoners who are presently detained in various prisons.”

My Kyi’s remarks on accepting his award were powerful, and are excerpted in Packer’s post. I found this passage particularly striking:

We have a way to communicate with the prisoners and get their stories out. I cannot tell you how we do this. I do not want the Burmese regime to find out. But I can tell you that these stories fill the pages of our reports and those of Human Rights Watch.

The media use these stories. So do political leaders around the world. Over time, the stories of these prisoners generate pressure on the international community to take a stand.

Burmese dissidents are outgunned and outmanned. But they have ideas and stories on their side. Who doubts they will win someday?

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"Sesame Street simple" communication with a story

Wednesday, November 12th, 2008

My first reaction to this Bob Sutton post–”Sesame Street Simple: A.G. Lafley’s Leadership Philosophy“–was a slight recoil. Perhaps because I thought we had tapped out on learning from A.G. Lafley (can’t we let the man run his company in peace?). But also because my natural communication style is not “Sesame Street simple.” Unsure of that? Read this blog for a while.

But, after letting it sit a few weeks, I’m starting to get what Sutton is saying. He’s onto something important about communicating with and influencing large numbers of people:

…although executives who talk about many ideas and complex ideas will be viewed as smarter — wiser and more effective executives pick just a few simple messages and repeat them over and over again until people throughout the organization internalize them and use them to guide action. Constantly changing messages lead to the “flavor of the month problem” where people don’t act on the current message because they have learned that, if they wait a few months (or days) the message will change (managers in such organizations become very skilled at talking as if they are acting on the flavor of the month, but not actually doing the thing that senior executives are pushing at the moment.) And making things overly complicated may make the senior executives seem smart and feel smart , but if a message is too complicated to understand, it is also means that the implications for action are impossible to understand as well.

Managers “talking as if they are acting…but not actually doing” recalls the damaging “false urgency” that inflicts many companies, as John Kotter discusses in his new book.

There’s a way to do “Sesame Street simple” in a way that provides powerful insight and direction. Telling a story. Stories can be understood by everyone. They can be retold and honed for a particular group (”what’s our ‘the consumer is boss‘ story?”). They can convey complex lessons and spawn deep discussions about meaning.

That’s a “Sesame Street simple” approach even I can understand.

(Photo: Hokey Pokey Elmo from Toys R Us)

Related Posts:
On John Kotter’s “A Sense of Urgency”
More on “A Sense of Urgency”
A.G. Lafley: “The Consumer Is Boss”

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"Blocking and tackling"–the mother of all sports metaphors

Monday, October 6th, 2008
From Merriam-Webster’s Collegiate Dictionary:

block verb1e: to interfere usually legitimately with (as an opponent) in various games or sports

tackle verb – 2 a: to seize, take hold of, or grapple with especially with the intention of stopping or subduing b: to seize and throw down or stop (an opposing player with the ball) in football.

Long-time readers of this blog will recognize my affinity with sports analogies and metaphors. So, recently, during the summer lull, I embarked upon a non-scientific study of the frequency of certain sports metaphors in business writing. And one popped up far more often than any other: “blocking and tackling.”

For those unacquainted with American football, blocking and tackling are two of the most basic skills of the game–necessary (but not sufficient) ingredients for winning. Teams that can’t block or tackle are doomed. For executives, blocking and tackling represent work that’s not glamorous but is important.

Here are some examples:

WSJ.com Marketbeat What’ll it take to fix Yahoo isn’t a mystery, and isn’t a magic bullet, Henry Blodget writes at Silicon Alley Insider. “It’s just blocking and tackling. And it will take time.”

Innosight blog Burberry has spent more than $100 million to improve its ability to ensure that the right products get to the right stores at the right time. These challenges of course require a fair amount of blocking and tackling, but there’s also ample room for fresh, innovative thinking.

NeuStar Q2 2008 Earnings conference call (COO Lisa Hook speaking): However, I asked to be on this call as a six month check-in, to assure that I am focused on delivering the basic, blocking and tackling necessary to meet our targets for growth and profitability.

This phrase was a recurring theme in executives’ earnings calls (here, here and here, for example). Of course, given the recent news in the financial markets, perhaps there was better blocking and tackling they could have done.

Other metaphors I looked for that were much rarer: “home run,” “unforced error” (which was popular in political writing), “icing the puck,” “letting off the hook.”

Did I miss any? What favorite sports metaphors do you have?

Related post:
Welcome to Sports Analogy week

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Corporate change #5 – role of consultants in "bringing the outside in"

Thursday, September 25th, 2008

In earlier segments of this thread, we discussed how “bringing the outside in” is imperative for companies to keep aware and humble enough to avoid complacency and drive their organizations forward successfully. By contrast, companies in which the context inside the company drowns out voices from the outside tend to attribute their successes to their internal competencies, blame their failures on outside entities, and stagnate their way to failure.

I was talking to an old customer earlier in the month about working to help companies learn about the world outside. “Exactly!” he said. “Companies need people like you to come in and help them learn about what customers think.”

To a point, yes. Having an outside perspective that is less invested in the company’s culture or politics is valuable. But not at the expense of a broad, internal effort to understand and make sense of the outside world.

Referring to the business complexity literature we’ve touched on a few times in this blog, the world outside is a complex, messy place. It’s constantly changing. So old information, and limited sources, are not very useful. To gain the best, most supple understanding of the outside, a company needs lots of eyes and ears, a diverse group gathering and interpreting information, and creating stories about it. Consultants should be among that group, but not the only or the most credible source for outside information.

Management’s job is to enable that story-creation, create systems for capturing and making sense of it, and above all to honor and use it to create strategy, spur innovation, and otherwise enable Kotter’s “sense of urgency.”

That’s a job that even McKinsey might hesitate to take on.

Prior posts in this series:
Part 1 Part 2 Part 3 Part 4

Reading list:
Gary Hamel, “The Future of Management”
John Kotter, “A Sense of Urgency”
Charlene Li & Josh Bernoff, “Groundswell”
Dave Snowden & Mary Boone, “A Leader’s Guide to Decisionmaking,” Harvard Business Review, November 2007.

Related post:
Complex business problems need diagnosis

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Corporate Change #4 – don’t leave engaging with the outside to marketing/PR

Friday, September 19th, 2008

In the prior post in this series, I talked about galvanizing the will to change through “bringing the outside in”–learning what customers, the press, influencers–really anyone–thinks about the company, its products, its marketplace, industry, etc.

To which a reasonable person might ask: “Isn’t that my marketing department’s job?” Especially with newer tools like blogs, wikis, Twitter, etc., marketing is taking the lead in engaging with the “groundswell.”

While marketing has a significant role to play, they cannot own this function, any more than finance can own any decision that has to do with dollars and cents–it’s too big, too comprehensive and too important to be limited to one group. Here are several reasons why:

Marketing is obsessed with brands & messages. Brands and messages are relentlessly positive–who buys a negative message? But learning comes from both positive and negative stories. There are threats as well as opportunities. Marketing is asked to convey messages, not to understand the world in all its messiness and complexity.

PR is asked to get positive stories out there, and to counter negative perceptions–not to learn or to inform the company. True dialogue involves listening–even when the conversation is negative or you don’t agree with it–and trying to find lessons in that. Perception is reality, and PR tries to change perception–what we’re talking about here is, by contrast, understanding reality.


The view of both is too limited.
Different parts of the organization have different things to learn from the outside. Operations needs to learn new ways of working. Product management needs to understand how customers actually use products. HR needs to know how the workforce is evolving. Groupthink is also less likely when a diverse group of people is examining the world–with more likelihood that sound actions, and commitment to achieve them, will result.

Comcast’s experiment with Twitter-based customer service (see example here of “Groundswell” co-author Charlene Li Tweeting for help and Comcast responding) works because the Comcast guy is trying to solve a customer problem, not deliver a message. If Charlene ends up feeling better about Comcast, it is a side effect, not the intent, of the action. The tech is also in a position to learn deeply about this customer situation and, I’m certain, to disseminate the learning to colleagues.

Imagine this fictional Twitter dialogue if Charlene had to engage with marketing instead of with a real tech (I’ve reversed it for readability. In real Twitter, the newest message is on top):


charleneli: @comcastmktg My connection keeps going in and out, happens every few months. Comcast Cust service has no idea why. Any way to escalate?

comcastmktg: @charleneli That’s hard to believe. Comcast has the highest network reliability in the industry.

charleneli: @comcastmktg Yeah, fine. Can you help me with my question?

comcastmktg @charleneli Of course. One more thing. Did you know we have twice as many HD channels as DirecTV?

charleneli: @comcastmktg What? Who are you? Can you get me to someone who can help me?

comcastmktg @charleneli Right away. Please email help@comcast.com and you’ll get a response within 24-48 hours. Have you heard about our community service initiatives?

charleneli: @comcastmktg Aaargh!

Coming next: what is the role of consultants (written by an actual consultant!) in bringing the outside in?

Prior posts in this series:
Part 1 Part 2 Part 3 Part 5
Reading list:
Gary Hamel, “The Future of Management”
John Kotter, “A Sense of Urgency”
Charlene Li & Josh Bernoff, “Groundswell”

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