Sunday, July 25, 2010

Dear Dr. A

Excerpts from the advice column longed to write:

Dear Dr. A: My manager is a jerk. He micro-manages, trusts no one, insists on reviewing everything, is the bottlenecks of all bottlenecks, and takes credit for all of our successes. And to make matters worse, he's a terrible dresser. Case in point: he wears stripes with plaid! I hate coming to work. Is there anything I can do?

Bummed in Buffalo

Dear Bummed in Buffalo: Aside from some tension-reducing practical jokes involving farm animals and orange spray paint, no, there's nothing you can do. You're screwed. Oh, and quit whining. Stripes can go with plaid.


Dear Dr. A: I haven't received a performance review in three years. I think my supervisor is either lazy or is afraid to talk to me about my performance. Everyone else in my department has gotten a review on time. I'm the only one who hasn't. What do you suggest?

Overlooked in Omaha

Dear Overlooked in Omaha: Performance reviews are overrated, especially when delivered by the lazy or the afraid. Consider yourself one of the lucky ones. And don't bring this up again, okay? You will live a longer, more fruitful life without another performance review. (By the way, not getting a review is good training if you ever become an executive, who very rarely have their performance reviewed. It's true.)


Dear Dr. A: My company talks a good game. We hear a lot about speaking openly, making suggestions about improving things, doing what it takes to serve the customer, about us all being in this together. But when push comes to shove, it's just talk. No one really listens and ideas go no where. Improvements are never made. It's really frustrating. What can I do?

Frustrated in Philly

Dear Frustrated in Philly: Welcome to the club! You think you work for the only company that says one thing and does another? Geeze! You've got two choices: Deal with it or find another place to work. And since many companies only talk a good game, you'll probably soon be back in the same place as you are now. Frustrated. So, deal. Oh, and know that 'nowhere' is one word.


Dear Dr. A: I have a close friend and co-worker who is having a problem at work, but is too shy to write to you. 'Erica' likes our manager. And when I say 'likes', I mean likes, if you know what I mean. Do you know what I mean? (Do you know what I really mean?) 'Erica' 'likes' him a lot. I've checked with HR and there's no policy against 'liking' anyone at work, even a lot. What do you suggest?

Cautious in Cleveland

Dear Cautious in Cleveland: Let me take a wild guess: When you say 'like' you really mean 'want to have a hot, steamy relationship with'. Another wild guess:
You like quotation marks. My last wild guess: You're 'Erica'. So given all of this, I'd suggest you tell Erica to do whatever she wants, but to do it discretely. Also tell her she's playing with 'fire'. (Those last quotation marks were for you, because, you know, you won't actually be playing with real fire.) And get over Lebron.


Dear Dr. A: I run a large company that's had to lay off a lot of very good people. It was a last resort, but we had to do it. The problem is that we didn't do it well. Now, we're fighting for our lives. Many of our people are upset, our competitors have stolen some of our best staff, and market share is eroding. You warned us this would happen. What can we do now?

Wistful in Washington

Dear Wistful in Washington: You didn't listen then, why will you listen now? Remember what we said? You didn't have to do the layoff. There are always alternatives. And the way you did it sucked. But, no, you pulled the trigger and now you've got a mess on your hands. Prove that you'll listen this time and then we'll talk.


Dear Dr. A: I love my job, my co-workers, my supervisor and my company! I look forward to coming to work every day. You get so many letters from people who complain about things at work, I just had to write to tell you things here are great. Thanks for listening.

Happy in Hanover

Dear Happy in Hanover: Get a life.




Sunday, July 18, 2010

There Must Be a Better Way, Part IV

We begin the week with two huge wins. Let's celebrate!

Yes! For the first time since April 22, and after 86 days and an estimated 185,000,000 gallons of oil spilled in the Gulf of Mexico, the broken well has been capped. Finally. The image at right, taken last week, shows no oil leaking from the newly-installed cap. Let's hope the damn thing holds.

Yes! Argentina has become the first Latin America country to legalize same-sex marriage, granting the rights of marriage, child adoption, property inheritance, and other rights/protections to gay and lesbian couples. Argentina joins Canada, Portugal, Spain, the Netherlands, Sweden and South Africa in extending the rights of marriage to same-sex couples. And let's not forget Mexico City as well.

Think anyone from our government is paying attention?

Like every fight for equality we've faced in this country -- and this, without doubt, is a fight for equality -- it's only a matter of time before justice will prevail. Which means, of course, that it will happen here. Hopefully soon. Because the longer the debate goes on, the more foolish we look.

Way to go, Argentina!


Working in the 21st century organization

Let's return to our discussion of the 21st century organization. Last week we defined eight requirements for the new organization, all based on basic human needs and each proven to illicit engagement, commitment, high motivation and, most importantly, outstanding performance. Now, let's look at this organization from the inside -- as people who work in such an enlightened enterprise.

Imagine:
  • Hearing about a company whose vision, clearly stated on their website, actually excites you
  • Applying for a position with this company and, during the process, being treated throughout the process with warmth, grace and respect -- as if you were a customer
  • Accepting an offer and immediately receiving a welcome phone call from a co-worker, a welcome package filled with company collateral (e.g., clothing, other branded stuff), and, later, a call from your 'mentor'
  • Following an initial orientation delivered by your co-workers and company leadership (in which many hours are NOT spent on the company-provided benefits!), starting work as a temporary intern on a largely self-governed team
  • Noticing that the company has no one with the title of 'manager' but, instead, many with the title of 'leader'
  • Assuming your performance is to the standards of the team and assuming you demonstrate the organization's values, being offered permanent membership on the team
  • In cooperation with your teammates, setting your own on-site work hours
  • Learning that 20% of your job is to serve on teams seeking to improve company performance via the development of new products, services, greater efficiency and/or the training of others
  • Being actively encouraged as part of your job to pursue your personal passions by, say, learning a second language, volunteering in the community, writing, making music, etc.
  • Receiving regular feedback from your colleagues and your mentor on your performance -- with the primary intent being to help you increase your ability to contribute to the performance of your team
  • Having easy access to company leadership and, remarkably, being encouraged to interact with them
  • Receiving data on a regular basis on your team's performance against its goals and data on the performance of all other teams in the company
  • Having the responsibility of improving the performance of your team and the company -- regardless of your tenure
  • Being charged with being an 'ambassador' of the company -- regardless of your job -- and receiving training to do it well
  • Working in an organization that looks and feels more like a honeycomb -- with strong inter-connectivity, mutual dependence and fluid communication -- than a traditional top-down, hierarchical, silo-driven company
  • Having access to data considered 'sensitive' or 'restricted' in other companies (e.g., enterprise performance data, compensation data) to demonstrate that secrets are few and that we are, indeed, in this together
  • Executive compensation being no more than 20 times that of the lowest paid member of the team (vs. the 400 times found in many Fortune 500 companies)
  • Everyone being eligible for stock options -- and those stock options being directly linked to your team's performance
  • Having your annual performance review (yes, there will still be annual reviews) being conducted by your mentor and the review being less about your performance -- since this will be discussed regularly during the year -- and far more about your career
  • Being responsible, with all others on your team, for the hiring and firing of team members and the setting of raises, bonuses and stock options
  • Having easy access to the descriptions and, importantly, the requirements for all jobs in the company -- making it easier to develop a personal plan to achieve your career goals, and
  • Only team members widely considered to be outstanding contributors, great ambassadors, and exceptional role-models of the organization's values receiving opportunities to assume broader responsibility for the longer-term success of the enterprise.
I know, I know: This is a ton to imagine. Even so, can you visualize such a place? See how such an organization could produce outstanding results, likely trounce its more rigidly- and hierarchically-structured competition? Lastly, would you like to work in such an organization?

I imagine your answers to those questions are: "Yes!", "Yes!", and "Yes!"

And when they build this organization -- and they will, some with our help -- the best will come. And stay for years.

Enjoy the week and keep those cards and letters coming.

Sunday, July 11, 2010

There Must Be a Better Way, Part III

Welcome back! You get 1 point for showing up, 1 point for reading to the end of this blog (we're on the honor system here, so be honest), and 3 bonus points if you visited a Whole Foods store during the last week. (Deduct 1 point if you don't know of what I speak.) You also get 5 bonus points if you picked the Netherlands to win it all at the beginning of the World Cup. There are probably 15 people outside of that country who qualify for these bonus points and I'm not one of them. (I was rooting first for Chile and then for Costa Rica, which didn't even qualify for the tournament.) No points for picking Spain, a pre-tournament favorite. It's my game; I make the rules.

Scoring is as follows:

6 - 10 points: You are amazing and are loved and respected by a few (I mean really, who picks the Netherlands?)

3 - 5 points: You are amazing and are loved and respected by many

1 - 2 points: You are amazing and are loved and respected by me

Here, just showing up is cool.

Speaking of another great sporting event, have you noticed how slim and fast the riders in the Tour de France look in their shorts and jerseys? I have got to get me a set like theirs. It's not the body or the athletic ability; it's the clothing.

This week, as promised, let's consider what a 21st century organization might look like. To do so, we'll first need to answer a key question:
What would an organization look like if it were designed expressly for people to excel?
Asked another way:
What would be the defining characteristics of an organization built around the needs of its workforce?
What? Are we really proposing to build an organization around people and their emotional/psychological needs?

Yes, as a matter of fact, we are. Radical to some, I know. But, hey, I grew up in Berkeley. It's expected of me.

So, let's consider the key features of an organization designed specifically to allow people to excel. An organization that will ignite passion, foster enthusiasm, promote creativity and innovation and, in the process, forge a highly-committed, dedicated, top-performing workforce capable of out-performing, out-competing, out-smarting even the most formidable marketplace competition year in and year out. It might even be a great place to work.

Maybe like what they do at Whole Foods. Or even better.

We humbly submit, then, that the successful, highly-profitable 21st century organization will be one characterized by:
  • An exciting vision. It's got to be something exciting, something that gets the blood flowing, that motivates us to do the amazing. No one is interested in shooting for being 'average'. Most of us want to believe that the work we do is meaningful, that it will actually help others. The vision must communicate that. A great vision gets people jazzed. Keep in mind that most of us can see right through 'corporate-speak'. Avoid it like the plague. Shoot for the stars with honesty and compassion. If it's from the heart, people will respond.
  • A "we're-truly-in-this-together" mentality -- and way of doing business. Humans are social animals. We're not good in cubicles. We are, though, good together in communities and especially good when we have to work together to make something amazing happen. Forming an organization around the concept of being linked by a common vision and being in this together plays well for the vast majority of us. But -- and it's an important 'but' -- the organization must demonstrate consistently that we are, indeed, truly in this together. Most say it, few do it. Remember, we know when the wool is being pulled over our eyes and we don't like it. More on this next week.
  • The key operating unit: The team. Humans want to belong and a team is a great thing to be a part of. Teams imply unity and, importantly, competition. Teams are also dynamic and, dare we say it?, fun. 'Departments' and 'functions' are far less appealing and, truth be told, are boring. Organize teams and give each the authority to govern themselves as they see fit. This will have an important effect of allowing far more people to have a significant role in the quest for the vision. Which is good, because we all want to have a meaningful role at work.
  • Winning is what counts. Humans enjoy competition and, especially, winning. Free each team to operate as it sees fit. Process is not nearly as important as product. (Yes, HR, it's true.) Performance -- exceeding goals -- is what counts. Let each team decide who they want on their team and how they want to work. Provide data regularly so each team knows how it's performing against its goals and against all other teams. And do not get in their way if they're successful.
  • Transparency is essential. Treat people with dignity and respect -- a rather important need of all of us -- by providing key data to all employees. That includes company and team performance data. It also includes compensation data. (Hey, there are no secrets anyway.) If we're truly in this thing together, prove it by being transparent, by trusting people with important information.
  • Technology must be the best. Most humans in the work place seek tools to make their jobs easier and to make winning more accessible. Therefore, provide the best electronic tools possible. If you want top talent, you must provide top technology, especially in the 21st century. This is not negotiable. And allow people to exploit it. If this results in a 3-day on-site 2-day off-site work week, cool. Two days on site and 3 days elsewhere might even be better. It's coming quickly, so try not to stop it. Instead, encourage it.
  • If there's any authority beyond the team, it must be local. Hierarchies are so last century. They won't exist in this century in the same way. And, admit it, few of us like to be told what to do and when to do it. We simply don't like authority. Leadership's job in the 21st century will be to inspire, not to direct. Everyone else will be tasked with making things happen. Authority for decisions must be put in the hands of those responsible. The more local the better. Which, suggests, that many workers will have significantly more power. It also suggests that there will be far fewer people with the title 'manager' and 'supervisor'.
  • A sincere interest in each of us. We humans need care and nurturing. This need is regardless of age or gender. We want and need to be shown 'the love' regularly. At work this equates to having someone genuinely interested in our well-being and in our future. In the 21st century, the care and nurturing of talent will be the single most important task of HR, as hiring, performance management and firing will be within the purview of the team. The great organizations will develop effective ways to ensure that everyone has a career path and a plan to achieve it. The great organizations will also use mentors -- whether they be peers or others -- to help each team member strive for greatness.
Have we missed anything? I hope not. I also hope you can begin to see how an organization built to harness our enthusiasm, our creativity and our passion might be an amazing place to work -- and how it could very likely be an organization capable of trouncing its competition. Year after year after year.

Next week: What such an organization might look like from the inside out.

(Give yourself a point if you've gotten this far.)

Sunday, July 4, 2010

There Must Be a Better Way, Part II

So, you've come back for more, eh? Cool.

Last week we outlined how the vast majority of organizations on the planet systematically suck enthusiasm, creativity, commitment and passion out of far too many people at work. While likely unintentional, the lingering effects of the Henry Ford-influenced management model have been profound. Think we've come a long way from the days when assembly lines were all the rage? If so, why do most companies still:

1. Assign everyone to a 'caste'
2. Place everyone in a specific, highly-structured 'box'
3. Limit independence and creativity by overly-defining the job
4. Teach what's permissible and especially what's not
5. Promote 'sameness' -- where nearly everyone is treated the same regardless of performance
6. Redefine 'personal growth' and 'advancement', and
7. Distribute rewards without sufficient transparency or connection to contribution?

The answer? I think it's two-fold:

1. Most find it easier to control than to trust. Indeed, why are there so many managers and supervisors? Do we really need to be watched as much as we are? In the old days -- the days when assembly lines were comprised of people new to cities and new to the 'modern' workforce -- sure. Someone had to teach these people how to work in the machine age. Someone had to teach them how to do their job exactly the same way each and every time. Keep in mind that it was our Henry Ford who asked, "Why is it that whenever I ask for a pair of hands, a brain comes attached?"

Creativity and individual expression were simply not part of the deal.

But now? Now, I believe it's a need to control. The need to ensure order and predictability. The need to contain. The need for compliance. Which translates quickly into a lack of trust. Because, indeed, we watch carefully those we don't trust. And, apparently, most companies place little trust in their people. For, truth be known, even managers are supervised.

And they wonder why we don't show greater commitment, a stronger sense of ownership to the organization and its mission.

Want to manage something? Great. Manage a budget. Manage a project. Manage a facility. But don't manage people. Because here's the truth: Humans do not like to be managed or controlled. We don't perform well when we're closely managed. Turns out we've got this thing for freedom, for independence. A rather strong thing, as a matter of fact, as evidenced by the holiday we celebrated this week in the States.

Until we break this need to control, most of us are doomed to a workplace where trust is weak or, worse, non-existent. And, in turn, most organizations are doomed to under-performance.

2. Sadly, we don't know any better. Another reason why most organizations are clear descendants of the Henry Ford model of management is that we simply don't have viable alternatives. Sad, but true. It's been 100 years or so since Henry created his assembly line-style of management. In that time, what other management models have been developed? Sure, Toyota's approach to innovation and product quality is one. Google's is another. But aside from a small handful of innovators, we're left with the out-dated, hierarchical, top-down, control-oriented management system that brought us to the dance.

There must be a better way.

I think there is.

Whole Foods is a great place to start. A company that might offer insights into what's possible. A company different on the outside and, importantly, on the inside.

How about this for different (radically different when compared to other food retailers): At Whole Foods, it's all about the team. Each of Whole Foods' 270+ stores in North America and the U.K. is organized around eight or so teams, responsible for everything from produce to check out. Teams are responsible for product selection, pricing, in-store promotion, ordering and staffing. Not someone in corporate headquarters or the store manager, but each team. Teams are also responsible for profitability. In short, each team runs a business.

Wait, there's more. New associates are assigned to a team, but only temporarily. After a four-week probation period, team members vote on the individual. A two-thirds vote of approval is required to earn a full-time role on the team. Teams can also vote members off the team for poor performance. The same process is also in place at Whole Foods' corporate headquarters in Austin, Texas.

And how about this: Each team is also highly accountable for results. Every four weeks, the company provides data on profit per labor hour for every team in every store. Teams exceeding a set threshold earn a bonus delivered in the next paycheck. And the data for every team in every store is available to everyone. Nothing like competition to keep the juices flowing, so to speak.

And this: Trust is so important at Whole Foods that it shares key data openly with all 56,000+ associates. For example, compensation information is available to everyone in the company, as is most data typically kept close to the vest, like: team sales, product costs, daily store performance and profitability, just to name a few.

Let that sink in for a moment. Compensation data and key company performance metrics are available to everyone in Whole Foods. Clearly, Whole Foods gets it: You can't keep secrets and expect people to trust you.

Sound like where you work?

As Whole Foods co-founder and CEO John Mackey puts it:
We don't have lots of rules that are handed down from headquarters in Austin. We have lots of self-examination going on. Peer pressure substitutes for bureaucracy. Peer pressure enlists loyalty in ways that bureaucracy doesn't.
And that's only part of what makes the Whole Foods approach to management so different and the company so very successful. Indeed, Whole Foods is this country's fastest growing and most profitable food retailer when profit per square foot is considered (a standard in the industry). The company has also been good to its investors: Since its IPO in 1992, the company's stock has risen by nearly 3,000% which, to say the least, is far above their competitors' stock performance.

A team-driven approach, with each team truly leading a business. Peers hiring and firing peers. Aggressive use of performance data to drive internal competition and profitability. A strong results orientation, with bonuses linked to performance and paid immediately following that performance. An 'open book' to even the most sensitive information. Oh, and did I mention that executive pay at Whole Foods is capped at 19 times the company average (in most Fortune 500 companies that multiplier is an astounding 400) and that, at last count, 93% of the company's stock options were granted to non-executives?

The fastest growing, most profitable food retailer in the country. A different approach to managing a company. Think those two things are related? Of course you do. Visit a Whole Foods store. You'll see the difference.

Next week: What a 21st century organization might look like.

Happy birthday, America.