Category: Entrepreneur Advice

What Management Doesn’t Know Will Hurt Them

Does your manager operate on assumptions? It's kind of a turn on my saying, what management does know will hurt them. The following are some examples:

  • We hit our numbers (cutting costs, revenue goals, quarterly profit), therefore we've earned the right to proceed with the next phase of growth.
  • The last employee survey was better than the last, so we don't need to dig any deeper into past complaints of favoritism.
  • We all have sacrificed, so morale isn't as bad as it may appear. Besides, we're a team.

Obviously, you and I could think of many other examples. My point is to illustrate the two different worlds management and employees live in. The most dangerous part is the inevitable collision to come. In America those collisions are happening on a regular basis. For example, our fiscal cliff is causing many publically traded companies to pay out one-time dividends at a lightening pace to beat what they see as the inevitble in 2013. The hike in tax consequences on dividend income. This is happening while many employees, and potential employees, are wondering when will the hiring will start again. The money is there for a dividend, why not for hiring someone.

Human beings are complex creatures. The DNA is fixed and we are who we are. Survival instincts, the need for affirmation and a desire for clarity are just a few to consider. How can this be missed. Lower quality leaders just don't know any better. Call it a leadership deficit that's difficult to remedy.

We're doing battle with culture here. A culture that staked everything, or so it seems, on some false-growth model. There needs to be some cleaning out to the rot. I'm not advocating we toss the entire system out, but I am advocating that we add some serious leadership development that is NOT based on giving the appearance of change. Way too many programs conform to keeping the status quo alive and well. We need to find courage now because we are far into the second-half. Expecting an epic comeback is a very dangerous outlook.

Management is toying with grave consequences when it forgets this.

 

Related articles
Candor and Clarity
5 Greatest Challenges Ahead for HR and Leaders
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The Essential Element

Until organizations realize that people are the essential elements of what make things work, we will forever have a win-lose proposition. Meaning, the organization thinks they've won and people are always on the losing end of the stick. Paying lip-service to this will only further deepen the hole. 

I admire any leader that has the courage to speak up and act. These types of leaders are willing to pay a steep price, in-order to fight for something worth fighting for. This is rare. Far too many people of influence are looking the other way.

The absence of leaders willing to raise their hands is the rot we have on our hands.

Related articles
Calling All 21st Centruy Pioneers
Make a Healthy Organization by Patrick Lencioni

The Future of HR with Carol Morrison of i4cp

The following is an interview I conducted with Carol Morrison of i4cp on the future of HR. A very compelling conversation we had.

Carol
Morrison is a Senior Research Analyst. She has been with i4cp for eight years,
researching and writing about the talent, strategy, and leadership issues that
directly affect organizational performance. In addition, Carol has authored
articles for Talent Management Magazine,
Chief Learning Officer, HRPS Journal, Human Resource Executive, and other
publications.

 

I’ve heard for some years that HR
professionals desire a role that makes them more of a partner in the business
enterprise. Is this desire becoming a reality? Are they moving the needle?

You’re absolutely right. This has been – and continues to
be – an evolution for HR and the business partner role. i4cp’s interviews with
CHROs and other top HR and business leaders confirm that many are shifting
their HR functions toward greater efficiency in handling the transactional and
administrative duties typically associated with HR. Technology is helping to
enable that transition.

In turn, greater efficiency affords HR professionals more
time to focus on the value they can provide to the business by helping to
identify issues that impede productivity, by uncovering potential opportunities,
and in working with business leaders to better leverage the contributions of
the workforce. As i4cp’s recent study, The
Future of HR: The Transition to Performance Advisor, underscores, the HR
professional’s role is all about driving organizational performance and that’s
unfolding in more companies today.

What traits/strengths should the HR
professional of tomorrow possess?

Exploring competencies that the future
HR professional will need is one of the core aspects of the i4cp study.
Certainly, keen business savvy is the starting point for a business partner who
can be a trusted and credible advisor to business leaders. It’s more than an
understanding of basic financial statements and business models. It’s in-depth
business acumen, along with such competencies as strategic thinking, the
ability to develop and execute strategy, a strong sense of ethics,
organizational design skills, comprehension of metrics and analytics, decision-making
capabilities, and an understanding of technologies and information systems.

CHROs with whom we spoke told i4cp
that HR performance advisors need to know how to ask the right questions to get
at the issues important to the business. They need courage to speak up when
it’s important to question the status quo, and the emotional intelligence that
enables them to effectively function in volatile situations and to serve as
confidantes when business leaders need reliable counsel.

How will the HR function stay relevant
in the next 10 years?

By contributing those competencies
just described. As long as organizations employ workforces, HR will be not only
relevant, but crucial. Human capital generally represents an organization’s
greatest investment and its greatest asset. If you are a leader who believes
that employees and their contributions are key elements that drive innovation,
differentiation, and competitive advantage, then there’s an important place in
your organization for HR professionals who can help you optimize performance by
ensuring that your workforce is appropriately trained, motivated, and deployed
to execute your business strategies.

In some ways, HR is exploring the last
frontier that holds promise for truly affecting business performance. The
economic challenges of recent years have sharpened leaders’ abilities to cut
costs, streamline processes, and wring all they can from tangible
organizational assets. There is tremendous power in the intangibles that
employees bring: discretionary effort, creativity, tenacity, wide-ranging talents,
and the desire to excel – to name just a few. HR is the integral link in the
performance chain – the force for uncovering and developing that human capital
potential.

On the whole, do most HR professionals
understand the challenges ahead within the world of work?

Yes – certainly as well as any of us
can understand the challenges within our volatile business environment. HR
professionals see the work world’s issues reflected in the faces of the
employees and managers they serve every day. So long as HR professionals – and
those involved in every other business discipline – remain curious, eager to
learn, and engaged in moving their organizations ahead, they’ll rise to the
challenges that come their way.

In fact, HR already may be ahead of
the curve. HR professionals often are intimately involved in organizational
change initiatives. Leading the way for change and helping employees and
leaders, alike, adjust to it has afforded HR professionals years of
opportunities to develop the agility and resilience to meet even unanticipated
circumstances with solid skills and resolve.

In addition, the HR leaders who shared
their views with i4cp made clear their investment in providing their promising
talent with unprecedented development options. Often, these involve stretch
assignments, job rotations, and specialized training that extends far beyond
the boundaries of HR. That means HR professionals are learning about
operations, finance, marketing, and other business functions, along with the
challenges they face. They return to HR with expanded networks that cross
functional lines and with a deeper understanding of the issues challenging employees
and managers organization-wide.

How can entrepreneurs, who are
building organizations, include HR in the vision and execution of business
strategy?

By doing just that – including them at the top level from the
outset. Savvy executives know that HR leaders are valuable members of teams
charged with developing business strategy. Leaving human capital considerations
out of strategy formulation is an ill-informed approach that seriously
jeopardizes execution. You wouldn’t leave out budget considerations when
planning new business objectives. Nor would you ignore the technologies or
equipment you’d need to accomplish your desired ends. Employees and their
skills are an equally vital element. Strategies require execution, and that
falls to managers and employees. In many companies, carefully crafted plans
fail because leaders leave human capital considerations out of the strategy
mix.

When i4cp researchers interviewed
Larry Myers, SVP of HR at T-Mobile, he observed that “companies that understand
the impact that sophisticated, top-quality HR organizations and professionals
can have, automatically gain strategic and business advantage. Their executive
teams would not think of making a step strategically without involving HR.”

Successful entrepreneurs understand
that ideas, resources, technologies, processes and people must be deftly melded in order to bring business goals to
fruition. They include HR leaders in developing
strategies to ensure that they’ve addressed all the elements necessary to
capably executing those strategies.

 

Need and Demand

It took me some time (probably more than I care to admit) to realize that to move things you must have need and demand, in-order to create a successful venture that changes the world. I would add scarcity too.

I know n America there is no shortage of life coaches, leadership gurus, management consultants, and the like. The question remains; has the needle moved? Is there evidence of strong ROI? The measurements and data tell a story. This article is one vivid example.

We'd be wiser to put our money somewhere else or change the machine. I write all of this knowing I am a part of the many. The many who have a sign on the door saying "open for business." My reform has begun.

The problem is we've come to this very dangerous place where many individuals and organizations say they need help/direction, but don't have the will to have the demand that produces change. Our government's treatment of our debt crisis is an appropriate portrait. Most politicians would say we have a debt problem, but haven't moved to a place of demand to fix it. Sadly, I fear we've come to the point of no return. I hope I'm wrong.

The reality is the same for those in business to help people move to breakthrough. An entrepreneur may have a thriving practice with many clients, but if the clients are circling the airport, it doesn't mean you have value. It just means your getting paid and they're circling the airport. And getting paid is sometimes the problem. Money often likes things to say just as they are. I tell every client that if we don't see change, they need to fire me.

Sticking yourself inside of the arena of change is dangerous, and most do not like danger. That's one reason the status quo is so appealing. Are you willing to ask yourself if the needle is moving, if change is occurring? Not change where you just move the furniture around, but where you go deep and examine everything to the foundation.

And you thought the big part was building a career.

Finding Inspiration

When I found my whole life, I began finding inspiration in places I didn't expect. I found inspiration in places that I had little time for in my hectic corporate days. By the way, I was afraid too. That always keeps you from what's best.

The following is a brief list of places I've found inspiration:

  • Flowers
  • Miles Davis (just about everything in made)
  • Wine
  • Cinema
  • Children

I found this article yesterday, which is a profile of Jack Dorsey. Jack is well-known for founding Twitter and Square. He's a good example of finding inspiration and being fearless in doing it. I hope you enjoy the piece as much as I did.

Ideas Are Not Enough

Ideas are not enough in business and personal. There was a point in my entrepreneur journey, though, when I believed having a great idea was enough. It isn't.

I attended a breakfast meeting this morning sponsored by a local group, TechColumbus. The presenters were from Clarus Parners and they gave wonderful insights into the art and science of presenting your business for funding/investment.

As I sat in the meeting, I couldn't help but think about how much I've learned over the last 5 years. I'm pleased to be where I'm at today. One of the big lessons is understanding that you can't just rely on a good or great idea. Your ideas need a full-spectrum of attention. It runs from capital to advice.

Here are some notes from the presentation this morning:

  • Know your sales trends. Are they up? Are they down. Is the trend long or short-term in nature?
  • What's the real value of your idea? Warren Buffett said, "Price is what you pay. Value is what you get."
  • Be realistic in your projections.
  • Investors want to see that you've got "skin in the game." How much of what you've got (money, time, intellectual property, etc.) is attached to the idea?
  • Funding comes when both sides see desired value.
  • Surround yourself with quality advisors.

 

Candor and Clarity

I've written before about the importance of clarity on the part of managers. Most of that was directed at mid-level managers who are often tasked with leading individual contributors.

This post is directed at those who are steering at the senior level. It may be an obvious, but candor and clarity is important. Consider the following:

  • Every organization should be willing to be clear and candid about the direction of the enterprise. If you are a publicly-held group, then you may have some disclosure issues to navigate. That said, legal limitations on what can and cannot be disclosed should not be an excuse for a lack of candor and clarity.
  • Every organization should let their employees know what the value system is based on, even if it means the employee is not at the top of the list. Avoiding this discussion/communication could be fatal. So many employers and employees operate under assumptions. Assumptions that go out the window when the storms come.
  • Every organization should be clear about how the organization makes money. This places a shared accountability and education.
  • Every organization must understand the life-cycle of and employee and give those employees the room to move on. So many organizations live in fear of employees leaving. Turn-over (internally or externally) due to terrible managers is bad (really bad), turn-over due to an employee completing the mission and moving onto a new dream is a great thing. By the way, the latter example might make your company a highly desired place to work.
  • Every organization should be able to communicate when the end is near. I know it sounds morbid, but don't tell an intelligent adult things are good when collapse is not far off. By giving them the tough reality upfront you give an opening to prepare. Every good employee deserves this kind of candor and clarity.

If you work for an organization that finds candor and clarity nearly impossible, I would consider moving on because a lack of candor and clarity is usually a sign of decline. The irreversible type of decline.

Corporate Madness

Corporate madness is a malady that often goes untreated. We are paying a price for this.

I wrote last week about the dangers around the status quo. I have been struck over the last few weeks of the madness within the corporate world around this. It's as if hope has replaced the action of fixing what will eventually kill. Hope has turned into do-nothing.

By the way, the one with the best and biggest retirement package does not win. Never has, never will.

The erosion continues.

Does Your Corporate Team Look Like Urban Meyer’s?

Since the Buckeyes kicked-off their season last weekend, I wanted to re-post this again.

Urban-meyer.p1

I live on a planet where Urban Meyer is the head coach for the Ohio State University Buckeyes football team. To say that people around here are excited would be an understatement. They see him as a winner (2 national championships) and someone who will do many great things for the program. Reasonable thinking would say that's the right view. But this post isn't about collegiate football. It's about your company/organization.

Does your corporate team look like Urban's?

I'm amazed at how many senior leaders virtually worship coaches and sports teams like OSU, and yet structure their teams in way that is contrary to the winning principles of those people and organizations. And before you say the two are different, think of how many times a senior leader, marketing dept., HR uses the word "team." 

I know you can't duplicate exactly the model of a football team, but think about the following:

  • Every football team (pro included) has a coaching staff. They also have managers, but they're usually the ones responsible for making sure the Gatorade tanks are full.
  • Every football team practices. This doesn't happen at an event for two days or when a course shows up in their email inbox.
  • Every football team makes it a priority to be in game shape. This includes physical, mental and emotional.
  • Every football team makes it a priority to know their competition.
  • Every football team strives for a goal that is much bigger than the individuals who comprise the team.

Wouldn't it be cool to see an organization structure themselves like a real team? Where the fruit of a real team comes alive. Think of all the stakeholders who would benefit in this kind of structure. Think of how much more sense corporate life would make.

If there are any senior leaders or corporate boards out there who see this as complete nonsense, then how about getting rid of the the word team? A little honesty would go a long way here.