Business In Washington - Business Operations Consulting

I confess.  I watch too much TV.  My excuses?  Well, I guess I could blame it on my generation.  As a baby boomer, I was raised with TV, the first generation in the United States that was.  Probably a bigger reason is that by late evening I am too tired to do anything else and an absorbing story takes me out of the stresses of the day and helps me unwind.

So, this has been a good TV week.  Most shows have their season finales, with great stories and cliff-hanger endings.  One of my favorites is NCIS.  The usual draw for fans in a police drama’s finale is leaking the fact that a series regular will die.  We all tune in to find out who.

The NCIS finale was a great action story, with plenty of suspense, rule breaking, insights into various characters, and an exciting gun battle.  For those of you awaiting a rerun, I will skip the “who died” part and move on to why I am talking about TV on a business blog.

At the tail end of the show, there is a new director of NCIS.  He hands out envelopes to each of the main characters, and tells them their new assignments, all in different places.  In short, he is breaking up the team.  There the episode ends.  The cliff-hanger, right?  We have to wait for fall to find out the outcomes.  Which of our favorite characters is returning?  (In addition to who died, of course.)

I was struck by the management lesson.  If a new manager is stepping into the lead, what should be done with the team reporting to him/her?  My take is, barring unusual circumstances, not what this guy did.  I would spend some time with that team to assess their strengths, both individually and as a group.  An effective team will equal more than the sum of its parts.  It will accomplish greater things because of the synergies resulting from a team familiar with its members and all of their strengths. 

Even more telling, to me, is that an effective team has enough of a track record to establish high levels of trust.  This is particularly important in a dangerous profession, such as law enforcement.  You just don’t break up an effective team without a better reason than I saw here.  It’s a criminal waste.

Why did the new director do this?  I think it was a power play, pure and simple.  And I think it may blow up in the guy’s face.  But I will have to wait until fall to find out.

Darn!

Years ago, I remember a column in a prominent women’s magazine, maybe Good Housekeeping, entitled “Can this marriage be saved?”  The story would be told from his point of view and hers, followed by analysis and counsel.  A bit sappy perhaps, but many people read it avidly.  I lost interest by the time I hit high school, but the title has stayed with me.

Recently, I heard from a client that he had fired a high level, long-term employee.  For some reason, the old column title popped into my brain.  I think it’s germain.  Let me tell you why.

When an employee’s performance slips, what should be the employer’s first thought?  Get rid of him/her?  Too often, that is the knee-jerk reaction of an inexperienced manager.  Of course, there are times when promptly “making the employee available to industry” is absolutely the right course of action.  But not always.  Not even most of the time.

So what’s an employer to do?  Take a step back and ask yourself a critical question first.  Can this employee be saved?

Finding and hiring good people is an expensive proposition.  The expense goes up with the level of employee you are trying to hire.  Add to that the cost of training an employee over time and the value of the institutional knowledge and experience he/she develops during the years spent with your company, and losing someone packs a financial wallop.  So, be aware of the  costs and be sure you can’t avoid the loss by addressing issues with the employee.

Consider the following:

• Does the employee have a performance plan?  A clear understanding of the work expected of him/her?
• Have you articulated your expectations clearly to your employee?  It is a constant surprise to me how frequently this isn’t done.  Employees are not mind-readers. 
• Have you discussed your concerns about the employee’s performance privately with the employee, openly and honestly?  No one likes confrontation, but if you don’t clearly articulate your concerns and give the employee a chance to respond, you are doing the employee and your company a serious disservice.  (By the way, don’t forget to document these critical conversations!)
• Did you provide all the tools and training necessary for the employee to accomplish the task? 
• If the employee responds to your direction and counseling, will you and the rest of your team be able to continue working effectively with him/her?  The relationships can sometimes be strained beyond repair.

Ensuring that your employees have clear direction, defined jobs and tasks, and a full understanding of your expectations will go a long way to making your job as a manager easier and your company more successful.  Employees are your most expensive and valuable asset.  Make sure you take appropriate management action before resorting to firing one of them.

The importance of good first line management to an organization is frequently given short shrift, in my experience.  This is particularly true with small companies that may have limited training budgets.  This may not be the best place for penny pinching, however.  Consider the potential cost of ham-handed people management first.

That cost can be huge.  First of all, in our litigious society, it is important to avoid stepping into a very large legal pile out of carelessness.  We often tell the story (a true story, although we have changed the names to protect the innocent) of walking into a client’s main office for a meeting.  The receptionist, about 8 months pregnant, greeted us and said our client would be with us in a moment.

The client finally came out and we went into his office.  As we began our meeting, we asked about the receptionist.  Did our client have temporary help lined up to cover for her during her maternity leave?  Our client replied, “I’m going to fire that (expletive deleted) today.”  Taking care to close the client’s office door, we suggested, strongly, that our client discuss this with his attorney first.  The attorney, summoned immediately via telephone, said he would be happy to take the case - the receptionist’s.  It would be a slam dunk.

My point?  One potential cost of clumsy or uninformed management is the cost of a lawsuit. 

Sure, lawsuits are expensive, but I think the higher potential cost of poor first line management is employee turnover.  It’s not that easy to find and hire great talent.  So we urge our clients to consider how they manage them.  Make an investment of time and dollars - for books, training, or coaching - to improve your own management skills.  Promoting one of your employees into a supervisory or management slot?  Make sure to help him/her make that transition.  It’s not that easy to give up doing the work and start getting the work done through others.   

I was lucky to have the benefit of management training in a large corporation.  We called new manager school “charm school”.  Joking aside, it was great training.  It included direct input from our employees, too.  We worked individually with instructors to go over the results of those employee surveys.  In addition to the numeric ratings, we also had employee comments, retyped so we couldn’t identify the source.  These comments could be bruising, but ultimately helpful to our growth as people managers.  (In an attempt to protect myself, I talked to my employees beforehand, encouraging them to offer candid, but constructive comments.  They did.  Whew!)

Can’t afford fancy management school for your new supervisory staff?  There are other ways to help them grow in their new management positions.  If you are experienced, take some of your own time to work with them.  Meet with your supervisors regularly and discuss issues as a group.  This will help you establish consistent management process and style as you train.  Work with a skilled consultant who can help train your team. 

Scale your management development to your organization and budget, but don’t skip it!  Poor managers are expensive in more ways than one!

This is the time of year when we all try to take stock of where we are and plan for an even better year this year.  I think it’s also a great time to make sure your employees are primed and motivated to charge forward with you.  Are they?  Spend some time and effort on management and HR chores to ensure your team is chomping at the bit, too.

Many of us in small business are new to people management and not terribly comfortable with it.  Take heart.  Even if management doesn’t come easily or naturally to you, it is possible to learn.  The rewards are well worth it.  In any business, regardless of size, your greatest asset is not on your balance sheet.  It’s your people.  Imagine how much more you can accomplish this year with a skilled, dedicated, motivated team at your side.

The beginning of a new year is a good time to evaluate your employees and set new performance goals for the future.  People need to know how they have done in the past and what is expected of them in future.  They also need direction.  That direction should come from the top.  Communication is key.  Make sure your employees are aware of your vision for the business and how you plan to get there.  Let them know what their role in this success is and how important they are to the overall success of the company.

Start by sitting down with each employee and discussing his/her performance.  Let him/her know what was done well and where you expect improvement.  As a new manager myself, I found it very difficult to confront a poorly performing employee.  No one likes confrontation.  I got over the hump by realizing that I would do my employees a serious disservice if I didn’t let them know what they were doing wrong and give them a chance to fix it.  When doing an employee evaluation, I prepare in advance so I am clear in what I want to convey.  Then, I always start with the good news - what he/she has done well - before going into what I expect in terms of improvement.  When performance issues are more serious, I convey clear expectations with specific dates attached for improvement and reevaluation.  Be direct, honest, and very clear.  It is possible to do so without being mean or nasty.  Your employees will appreciate it. 

Employee performance planning, development and evaluation will work best if it is a regular activity.  Develop a schedule and system that works for you and make sure all employees are aware of it.  Use the system and communicate regularly with your employees.  The process will help make it easier for all concerned.

As the year progresses, take time to celebrate successes.  It will help keep your team on track and motivated.  Besides, everyone appreciates an atta-boy or atta-girl now and then.  Have some fun with it, if appropriate, with contests and awards.  Make sure your employees feel appreciated and that their efforts make a difference.  It will make a difference in your business.

Lots of us shoppers out there are Costco addicts.  Speaking for myself, I have to say I love the thrill of the hunt, finding something unusual and exciting at a great price.  I appreciate the more mundane benefits of shopping at Costco, too - the high quality and really good prices for stuff I need and use every day, even if I wind up buying a quantity more suited to an army than to my small family. 

 The thrill of Costco’s  “treasure-hunt technique” was described in a recent Wall Street Journal article, from an interview with Costco CEO Jim Sinegal.  It’s a great article, one I highly recommend.  What I found even more important, however, were his comments about hiring and keeping good people.  Here’s the quote:

“WSJ:  Costco offers better wages and benefits than most of its rivals.  Why is that?

Mr. Sinegal:  We think that you get what you pay for.  If you hire good people, pay them good wages and provide good jobs and careers, good things will happen in your business.  We think that’s proven true in our case.  We are the low-cost provider of merchandise, and yet we pay the highest wages.  Wouldn’t that suggest that we’re getting better productivity?”

Well, duh.

We have seen this principle used and abused among our clients.  One, who had a serious cheap streak when it came to employees, had a constant problem with turnover.  Employee morale and attitudes suffered and the results were reflected in reduced productivity and lower profits.

In contrast, another client was known for paying extremely well (almost too well, IMHO).  He demanded a lot from his employees, but gave them the tools, training, and freedom to deliver.  And they did.  They worked hard and well.  Productivity soared along with profits.  And the employees stayed!  They were an effective team and were rewarded for their hard work and loyalty.

What is your experience?  Please share your stories!

I’ve been reading the Wall Street Journal again.  This time, the article that caught my eye was one by Elizabeth Holmes, “Career Mentors Today Seem Short on Advice But Give a Mean Tour.”  It presents a trend in corporate America for managers to delegate the mentorship of new employees to more experienced employees, rather than taking on that role themselves as was the norm in years past.  Judging by the examples used in the article, the approach isn’t working very well.

I’ve been a manager in a large corporation, so I understand the demands on a manager’s time and the need to delegate effectively.  Now, however, viewing this situation through the lens of a small business owner, I have to say that this article raises some real concerns.  In the current job market, there are many more jobs than qualified people, so once you have found and hired a good person, it seems cavalier and stupid to handle bringing them on board so poorly.  Take the time to handle this task yourself or make sure your mentors are trained and equipped to handle the job well.  In fact, if you have an employee bucking for a promotion to management, being a mentor might be a great proving ground.  Use it as a growth and training assignment and monitor the mentor’s progress.

How you introduce a new employee to your company, handle initial new employee orientation as well as ongoing training says a lot about you as a manager and about your company as a place to work.  Give the task the time and thought it deserves and a good new employee will become a great long term employee.  It takes so much effort, time and money to hire.  Don’t waste your investment after the hire with shoddy management.

How do you welcome a new employee into your company?

It’s tough hiring great employees these days!  There are more jobs than people to fill them, so we have to work really hard to find and hire the personnel we need to expand our businesses.

Once we’ve got them, how do we keep them?  We’re kidding ourselves as employers if we think we just have to get them in the door.

There was a great article in the Wall Street Journal recently, written by Carol Hymowitz, “Managers Lose Talent When They Neglect to Coach Their Staffs.”  She contends that the “engaged employees work for managers who spend a big chunk of their time helping their subordinates succeed.”  I thoroughly agree with her.  I believe the most important job of a manager is first to ensure that their people have the tools, training and guidance to do their jobs and second, to take roadblocks out of their way. 

Unfortunately, in many companies, managers are measured on their financial results rather than on how well they manage and retain their people.  Good management is a skill that is frequently undervalued.  In fact, too many employees are promoted to management based on how well they do the jobs themselves, rather than on their ability to work effectively with people.  What a waste!  It sets up the new managers to struggle and very likely fail, and their disaffected employees become the collateral damage.

Here are some of my thoughts on working with people.  I look forward to hearing some of yours!

• Be alert to the signs of a struggling employee and take corrective action.  It’s in everyone’s best interest to do so, both the struggling employee and the rest of the team, whose productivity is no doubt being hampered by the situation.  By “action”, I don’t mean to get rid of the employee instantly.  Instead, try to find out why the employee is having difficulty and see what can be done to help.  He/she may need more guidance, training, even just encouragement.
• Get to know your employees.  Different things motivate different people.  You may have to alter your management style appropriately.
• Evaluate your entire team in view of the jobs they have to do and shift assignments if appropriate.  Sometimes an employee who struggles in one position will shine in another. 
• Communicate with your employees regularly.  Keep them informed and involved.  If they know the “why” of their task as well as the “what”, they will be more likely to buy into the team mission and deliver good results.
• Foster an environment that encourages communication between workers and management.  In a previous job of mine, this was referred to as the “open door policy”.  Employees could take an issue to management without the fear that their action would be held against them or would jeopardize their jobs.
• Be tactful, but direct in providing feedback.  We all fear confrontation, but we do an employee a disservice if we don’t tell them what they are doing wrong and give them a chance to fix the problem.