Posted tagged ‘employees’

Compensation Revisited

December 8, 2011

Not unlike a car wreck on the other side of the highway, I can’t stop myself from slowing down just a little and gawking at the latest “better motivations than money for your employees” article.  And it’s not that I don’t believe any of that, but somehow the articles never quite nail the real question in my mind.   Here’s the latest list of things you can do instead of paying your employees more money:

  1. Be generous with praise
  2. Get rid of the managers
  3. Make your ideas theirs
  4. Never criticize or correct
  5. Make everyone a leader
  6. Take an employee to lunch every week
  7. Give recognition and small rewards
  8. Throw company parties
  9. Share the rewards and the pain

Although it might be great sport, I am not even going to pick at each recommendation.  Each could be be useful at times, though I would be reluctant to universally apply any of them.  I am also going to restrain from pointing out the obvious conundrum between #2 and #5 (oops, I guess I just did… dang.)

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I do want to offer one constructive thought, since we are all banned from criticizing or correcting by #4.

Compensation and motivation/morale are two vastly different things.

If you don’t believe me, find a company that has the highest morale and the most motivated employees you’ve ever seen.   Then have the CEO announce that the company is bankrupt and that anyone who wants to stay and work for free can do so starting Monday.  I am not saying no one would show up, but I doubt it’d be business as usual.

Most employees need to work to live, sustain their families, and otherwise pursue their personal version of the American Dream.  That’s why the size of their paycheck matters to them.   They also want to feel good about where they work, who they work with, and what they do.   Here’s a news flash though:  the latter is, to a large extent, out of your control as a company leader/exec for two reasons:

1) you can’t possibly predict or control the complex interpersonal relationships that develop in the workplace.

2) in many organizations (though I am sure not yours) there is an innate skepticism from employees around all new management initiatives.  The “real” reason you’re taking me to lunch, throwing a party, or praising me is always lurking in the back of some of your folks’ minds.

And if anyone even mildly suspects that any of these parties, praise or changes is intended to be a “replacement” for a raise or bonus, you will be well on your way to the exact opposite outcome of what you set out to do.

Instead, just try being Fair, Honest, Transparent and Unflappable.   That’s five less things you have to remember to do, and none of them require you to go to the Olive Garden six times a month…

Big Fish, Little Fish, smells the same

November 4, 2011

Sometimes I worry about running out of things to blog about.   Then I caught a few news stories this week and that fear just melted away…

The first news story I heard, which I am sure many of you did as well, was about the CEO of Nabors Industries, Eugene Isenberg, who stepped down as CEO to remain as only the Chairman of the Board, as I understand it.  For this magnanimous gesture, he was paid a lump sum of $100 million dollars.   Dr. Evil would be proud.

The second got a bit less notoriety, but is eerily similar in many ways except for the size of the payout.   Turkia Mullin was the Chief Development Officer of Wayne County in Michigan.  She left that job to take over as CEO of Detroit Metropolitan Airport, which, no surprise, is in Wayne County.  For this shift in roles, she was paid a “severance” from her CDO job of $200,000.00.   As you can see from the article, once this payment came to light, she announced she would be returning the money.    Which only adds to the innate sense that the payment was completely unjustified in the first place.   Otherwise, you’d think she would have kept it.

imageI think we can all agree that executive compensation often feels completely out of line with performance, actual responsibilities, value to the company as a whole or other factors.  But it is even more disturbing to me that, now, executives are getting big payouts just to change jobs or titles within THE SAME COMPANY (or county, in Turkia’s case…)

CEO News flash:  Whether you support our current president or not, I think we’d all agree that Barack Obama probably makes more gut-wrenching decisions in a month than either of these folks made in their entire careers, including sending brave young women and men into harm’s way.   If you don’t believe me, do some reading about the marines in Dark Horse battalion.    I am pretty sure Barack’s salary is closer to Turkia’s “bonus” than to Eugene’s base pay, no less his “lump sum” payout.  So whatever contrived justification you CEO’s are creating inside your heads that help you believe you deserve this type of financial compensation for your efforts, I don’t think they have anything to do with leadership.

In the 1800’s, a term was coined for folks like this.  Robber barons.  Might be a good time to revive that catchy little label…

Worth Repeating

October 21, 2011

I really do enjoy the “Corner Office” pieces in the NY Times Sunday Business section.  A lot of no-nonsense and inspiration leadership from CEO’s doing Q and A with Adam Bryant or another reporter.  So October 9th’s piece was no exception.  And I know I’ve written about root causes and understanding the real motivations of your teams before but this anecdote is absolutely worth repeating…  And if you can’t relate to this, you have never run a sales team.

Joseph Jimenez, the CEO of Novartis, a BIG pharma company, was responding to the first question, right out of the gate.  The question was about important leadership lessons.  Allow me to summarize and paraphrase:

Joseph said he was appointed to head a division of another company and ‘turn it around.’   One serious problem was that the division missed their sales/revenue forecast every month.  He brought in a consultant and they concluded that they needed a better and more analytical sales process.

So they put the new process in place and the forecasts did not improve.  Hmmmm… 

Then he brought in a behavioral psychologist who reported, after several weeks of study, that the problem wasn’t process, it was “truth.”   Throughout the division, team members would assemble the forecast KNOWING they weren’t going to hit it and that it was, essentially, made up.  Joseph realized that, starting with him, the willingness to hear bad news as a means of getting to the truth was the right next step.

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This week, at the Berlin SharePoint Conference, I had an opportunity to spend some ‘face time’ with the CEO of a successful software company that I admire quite a bit.  He told me they were getting ready to do business reviews, and he had decided that he was going to kick off the meetings by asking everyone to list two or three mistakes they’d made in the last year, and he was going to go first.  Brilliant.

In your organization, would you be comfortable standing up in front of your peers and listing your mistakes from the past twelve months?   Because if you can, you will take a big step toward creating a culture where mistakes are acknowledged as learning opportunities.  That’s the  one time when mistakes are worth repeating…

The Eleven Percent Solution

September 29, 2011

It seems appropriate, on this last day of the major league baseball season, to ponder the difference between success and failure, two terms that get thrown around a lot in sports and business.

The New York Yankees are having a successful season so far.  They are likely to end up winning 98 baseball games this year if they hold on to the lead they have right now.  They lost 64 games.  If you think about it, that’s a lot of games to lose.

The Cleveland Indians will not be in the playoffs and I suspect some of their fans would not consider their season successful.  They won 80 games so far, and lost 81.  Even Steven…

What’s interesting about that to me is that the difference in wins between the Yankees and the Indians is a mere 18 more games won by the Yankees.  Over the course of 162 games and six grueling months, that amounts to eleven percent more games won by a “successful” team over a “failure.”  Not a lot.

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Coincidentally, I was also at a panel discussion last night about innovation.  One of the questions from the audience was “do you celebrate failure?”  Good question!   I was a bit surprised by the answer, which was pretty much “no we don’t.”   I thought perhaps the speaker would wax eloquently about how important it was to coddle your team and accept interim defeats.  But no!    I think the gist of the response was that, although you have to learn from mistakes and continually correct your course, just because you’re innovating doesn’t mean you have to expect, tolerate, or celebrate failure.

So here are my questions:

  1. Do you think the Cleveland Indians are popping champagne tonight?
  2. Do you think the Yankees high-fived each other in the clubhouse after one of their 64 losses?
  3. Does you think that the most successful sports teams get angry when they lose and use it as motivation to go out the next day and kick some butt?
  4. Does your team or organization hate to lose?
  5. Do you think that anyone on your team believes that an 11% improvement in their results, however they are measured, would mean the difference between success and failure?

Answer key:

  1. no
  2. no
  3. yes
  4. you tell me
  5. If not, I think the Indians are looking for a backup catcher…

Is Everybody Happy??

September 9, 2011

I am not a huge believer in polls.  I think that regardless of statistical sampling size and other factors, the way that questions are ordered, worded and who you ask still affects the outcome in ways that belie objectivity.

Be that as it may, has anyone seen the latest Gallup Healthways Well Being index as it relates to “employee engagement?”  Interesting stuff!

Allow me to summarize.  The Gallupians use three categories to segment employees:  engaged (in their companies), not engaged, and actively disengaged.  It may surprise no one to hear that 30 percent of American workers are engaged in their work, 51 percent are not engaged, and 19 percent are actively disengaged.   A sad state of affairs indeed.

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What can you do about this??

I would suggest two things:

1)   it turns out that many economic sleuths are actually willing to admit that there’s a relationship between engaged workers and your company’s bottom line.  Personally, I don’t feel like anyone should even have to make that case, but next time you bump into your CFO in the elevator, ask her if she believes that to be the case.  If not, dust up your resume.
2)   there was an editorial in the New York Times this past week  that referenced the Gallup engagement survey but also proclaimed to find a root cause relationship that will change your workers’ sense of engagement for the better.  Get this!   As a manager, you should acknowledge and praise incremental progress in your team’s work.  That’s what keeps them engaged!  Brilliant!  It gets better.  When 669 managers were asked to rank 5 motivators, 95 percent of them ranked “supporting progress” dead last.

Are we happy now?

Put me in, coach!

September 1, 2011

One of the things I love about baseball is the subtle communication that is taking place all over the field.  The signs between the catcher and pitcher, silently communicating the type of pitch and its location.  The signs between the manager in the dugout, the third base coach and the batter, informing the batter whether to bunt, swing away, take the next pitch, or ask for more money in his next contract.  You can imagine that, if a new player showed up on the team and didn’t take the time to find out what all the signs were, he wouldn’t be very effective and would be on the bench, “riding the pine” as they used to say, pretty fast.

So I am always a bit amazed when a vendor that is being  paid handsomely for their efforts introduces a new “player” in a meeting or on a conference call, allegedly with some new expertise that is greatly needed for the project/endeavor to succeed, and the first words out of the new player’s mouth are, “I’m really not familiar with your project or environment.”

Really?  Did the person coordinating the resources from your end not take the time to fill you in on a few key details, like what we’re trying to accomplish, who the team is, what our milestone dates are and what your role will be??  Or did you not bother to ask??

imageWhen you play pickup baseball in a park or schoolyard, there are no signs.  That’s because everyone playing are a bunch of amateurs, not paid professionals.

How do you want YOUR team to be perceived…?

Carbon footprint

August 25, 2011

When I was a kid and disputes were escalating among siblings, your “ace in the hole” often was, “I’m telling mom” or “I’m telling dad.”  You knew you ran the risk of being called a tattler or escalating things further, so you tended to only play that card in desperate times.

Fast forward a few years…

I always thought that CC in an email stood for “courtesy copy.”  According to the search I just conducted, it stands for “carbon copy” and is defined as:

Carbon Copy, it is for those that are not part of the main email but are just being informed of it

But that’s not what it’s used for in many organizations, is it???  It’s used to tell mom.

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I have a theory that I bet some really smart developer with access to an organization’s MS-Exchange data store could prove or disprove.  I submit that the level of bureaucracy in an organization can be measured by counting the number of emails that everyone cc’s their boss on in comparison with the total number of emails they send.   The higher the number, the more you have to tell mom to get a co-worker, peer or someone else who doesn’t “report to you” to actually take action and help you when there’s nothing in it for them.

It’s a sad state of affairs when two co-workers who allegedly work for the same organization and should have the same goals won’t collaborate unless it’s under the watchful eye of one of their bosses.

Why don’t you take a moment and ask what your “carbon footprint” is?  If it’s more than 5 to 10 percent, maybe it’s time to reduce your emissions…

There’s no I in “me” either

August 11, 2011

I suspect many of you will join me in condemning two little phrases that I just can’t stand:

  1. There’s no “I” in “team”
  2. Win, Win

As an aside, I might point out that, ironically, there are two “I”s in Win-Win, but that’s off topic…  So let’s tackle the first one.

The gist of “there’s no I in team” is that high performing teams put the interests and goals of the team in front of their own personal goals and interests.  And I am sure there are many examples of this, even in the business world.

But one thing I am equally sure of is that just telling someone that there’s no I in team and considering that “mission accomplished” and expecting some radical behavior change is completely misguided.  Why?

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Because in most work environments, there are a long collection of motivators that encourage many folks to behave as if they were just told there’s no “I” in Mississippi…  Some of my favorites, recently encountered, include:

  • ego
  • the need to be right
  • a distaste for acknowledging that a different approach that didn’t come from you might actually make more sense
  • your annual merit review, which rarely involves the rest of your team in a group session
  • fear of the unknown

I am sure many of you could add to the list (in fact, feel free to) but my point is really just that if you want to create and sustain a team that GENUINELY and CONSISTENTLY behaves with the team’s interests first and each person’s second, you need to recognize that there are powerful forces working against you and that significant and frequent reinforcement and recognition of team behaviors may become your top priority for the foreseeable future.

If not, I suspect you’ll wake up when it’s time to vote and find out that the “I’”s have it…

Empower(less)ment

August 4, 2011

For any of you who have kids (and many who don’t) one of the great joys you get raising your children over time is the pride you feel as they gradually mature, take on new responsibilities and learn to make good choices.  In short, you teach them empowerment.  And other than an occasional allowance here and there or some money for the movies, you’re not really paying them to make that progress – you’re just trying to help them be self-sufficient and most importantly, make sound decisions when you’re not around.

So why was I not surprised when:

a) a good friend of mine told me her manager said to her, “I don’t pay you to make decisions, I pay you to do what I tell you to…”

b) I was told by a co-worker, after waiting weeks for budget approval so I could order equipment to keep a project on schedule, “a lot of the execs that have to approve the budget are on vacation so it’s been tough to get them to review and sign off on the document.”

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It seems that, even as unemployment stays high and we ask workers to take on more and more, that doesn’t include decision making, especially when it comes to spending the company’s money.

I fear that a lot of managers out there have blurred the distinction between control and leadership.  So here’s a fast refresher:

Control is the illusion that you can orchestrate all events to your liking (just ask Hosni Mubarek how that’s working out…).  Leadership is establishing and communicating goals and objectives to your team and then trusting that they can do their part to get everyone there.

Just ask my kids…

Virtue and Virtual

July 28, 2011

 

A long time ago, in a company far, far away, I was doing an employee’s annual review.   He was a pretty good worker.  Reasonably dedicated.  Got along with his co-workers.  Knew enough to do his job.

So I am in the midst of his review, and he “reminds” me that he’s in early every day.  And he was!  Our start time was 8 AM, and he was in by 7 almost every day.  Good for him!  Except…

  1. the employee parking lot tended to get crowded by around 7:45, so he liked to get in early and get the best spot available.
  2. After he got to his desk at 7 AM, he would go to the cafeteria, get coffee and a muffin, and read the local paper at his desk til a little before 8.

How do I know this?  Because every once in a while I needed to be in early as well, and I would walk past his cubicle and see him reading the paper and drinking coffee.  I had no problem with this whatsoever; it was his time to do with as he saw fit.  As long as he started work by 8, no problem.

Until he brought it up in his review as if it should somehow positively influence his scores and/or merit increase.

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My point is that a lot of managers these days are sweating their virtual (and perhaps not virtuous!) workers.  What are my workers doing?  Are they really putting in a full day?  How can I make sure they aren’t taking advantage of this rather honor system-based approach to getting work done?? 

Well you know what?  Not much has changed.  If someone is dedicated to their work and feels a certain responsibility to give a fair day’s effort for a fair day’s pay, they will do it at their desk, at home, or in Cancun.  (OK, maybe not Cancun…)   And the opposite is equally true.

I am pretty confident this is the case.  Because I go on a golf trip every year with several folks who own their own companies.   And they work quite a bit while they are “on vacation.”  Because they feel accountable for their customers, their revenue, and the reputation and responsiveness of the business.

So before you overreact to “where” your team is, why not spend some time contemplating “who” your team is…??


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