Friday, March 5, 2010

Delivering Negative Feedback

In the operation of business, there will, inevitably, be times when projects don’t go well, mistakes are made, and team members don’t perform at the level that is needed. As a manager, it is often your responsibility to meet with team members to provide negative feedback and work with staff to improve their performance. This can be a very difficult task, and highly uncomfortable for both the manager and the team member. Especially in circumstances where you have an employee who is giving their best and has a great attitude, it can be very difficult to tell them they aren’t performing to expectation.

Early in my career, I made a mistake that is common to many new managers. I absolutely dreaded providing any kind of negative feedback to my direct report employees, and simply avoided doing so unless absolutely necessary. My rationale was that if I provided negative feedback, I would de-motivate the team member, cause them to be uncomfortable, and further exaggerate the problem with low morale. I reasoned that if I provided ample positive feedback on things that were done right, staff would recognize that they didn’t perform to expectation when they didn’t receive positive feedback and make changes accordingly. I further reasoned that problems were either generally minor and limited, and therefore not important in the grand scheme, or if frequent and large, would warrant the termination of the employee. So, I determined the best approach would be to simply let the problems lie, see if the employee improved on their own, and then if they got to a point too great, terminate the employee. As I matured as a manager, I realized that this is about the cruelest approach I could possibly take. Employees could be blindsided by a poor review, or worse yet, a termination they didn’t anticipate.

As I grew in my management abilities, I came to realize that negative feedback is critically important. At first I would use the biannual evaluations as the “right time” to provide negative feedback on problems. However, I realized that this wasn’t timely enough feedback and could result in employees being surprised and de-motivated. A better approach is to provide feedback as soon as possible. By providing both positive and negative feedback regularly, team members can clearly see where they stand, what is expected of them, and how they are progressing.

I’m a firm believer in the adage that a happy worker is a productive worker, and I think this holds true across industries and organizational levels. As such, I’m highly conscious of the morale of my team members and want to be certain that as I provide feedback it doesn’t discourage or harm their morale. Providing negative feedback, however, doesn’t have to de-motivate the employee if delivered constructively and tactfully. It is important to make sure to deliver the information in a non-confrontational manner. You accomplish nothing if the person is instantly on the defensive and feels they have to justify their position. I’ve found an approach that works well is to start by talking about strengths and things that went well, and then broach the problem area with a statement such as “an area I’ve noticed that we could work on”. I generally also try to be very clear with the significance of the issue – is it something that was very damaging to the project or the company, or is it simply something to be aware of an work on for the future. Hopefully, by being very proactive with feedback, most issues will be caught early and will simply be items to work on to avoid future problems. I try to make these conversations very productive oriented; going quickly from the problem to a plan to mitigate the problem. I try to ensure that the employee doesn’t feel the problem will prevents them from being successful in the future, harm the relationship with me as their manager or their team members, and that it is something they are empowered to correct.

The underlying idea of this discussion is that employees are, I believe, very interested in being successful and doing the best job possible. By not providing the employees with negative feedback, you are depriving them of the ability to be successful. Through providing an accurate and timely view of their performance, you encourage the employee to modify their performance to meet the specific organizational needs and demands and perform at their highest level. With this feedback, hopefully your team will become more effective. For those who are not able to adapt, they are able to see for themselves that they are not effective in the environment, and are not blindsided in the event of employment conversations. So, as a strong manager, it is critically important to overcome the discomfort of providing negative feedback, and have these constructive conversations with your employees for the benefit of everyone.

Give 'Em a Big Bear Hug

My first real employment was at the Big Bear Grocery store in Hurricane, West Virginia. This was a summer job immediately following my high school graduation. I was employed as a “bag boy”. I enjoyed this summer experience and actually learned a number of great business lessons that has remained with me over the years.

A few weeks after I began my job at Big Bear, there was a change in corporate management over the chain of large grocery stores. It was announced that the new CEO would be making a visit to each of the regions and meeting with all of the employees. Although some employees were frustrated to have to go to a meeting, others, including myself, were very enthusiastic to get to meet the new CEO. It was very exciting to think that he was interested in speaking with even the newest entry level employees.

Business Lesson #1 – As a high level manager, you have a very tremendous influence on the morale of all employees. You set the tone for the business. By simply acknowledging, thanking, and paying attention to employees at the ground level, you can dramatically improve motivation and align teams behind the company.

The day of the meeting came, and all of the employees from our store and a few other stores in the area gathered in a large meeting area at a local college. We were greeted by a large and elaborate breakfast spread (hopefully from the Big Bear deli and bakery). After the breakfast reception, we were all seated for the CEO’s presentation. He began by talking about cutting expenses and saving money. He discussed various examples of where the company was spending too much money. For example, the produce department had plastic bags printed with five colors. He explained the amount of money that could be saved simply by switching to single color printed bags without having any affect on the customer experience.

Business Lesson #2 – Spend money wisely, focus spending on what will produce value to the customer. If you are spending money on items that have no direct or indirect value to your customers and you goals as a business, it is a waste of money. The key to this, however, is identifying what has “indirect” value. For example, professional development, competitive employee salaries, generous employee benefits, morale building activities, employee recognition, and community involvement don’t necessarily directly provide value to the customer, but by building a strong business, you are able to provide better products, services, and support, which is certainly a value added feature for your customers.

Another main agenda topic of the CEO’s discussion was the distribution of product return cards to all employees. Every employee received a small plastic sleeve containing business card sized product return cards. We were instructed that if a customer brought back in items for returns, or even told us they purchased a product with which they were not satisfied, we were to fill out the card with the item information and the customer could exchange the card for the return value or replacement at any cash register. This empowered any employee the customer came in contact with to provide customer service. The CEO further explained that we shouldn’t question or argue with the customer – even if they returned a product that we didn’t sell, or we knew the customer was taking advantage of us, to simply happily give the customer the return and thank them for their business. We were further told that, as an employee, we would never get in trouble for doing too much to serve a customer.

As an entry level employee, I was thrilled to have this empowerment. I was engaged and ready to serve the customers and felt that I had the tools to do so. I don’t think I ever actually had an opportunity to use any of the cards, but, I faithfully carried them with me and felt aligned with
the organization to provide outstanding customer service.

Business Lesson #3 – Empower your employees to serve the customers. Your teams need the proper and necessary tools, knowledge, and motivation in order to provide outstanding customer service. If any one of these three is missing, you will not get the results you desire.

Another amusing story from my employment at Big Bear was in unloading a truck one afternoon. I was asked to unload a freezer truck that had arrived early. Caught a bit off guard by such a request, I asked what all needed to be done. They said I simply needed to take everything out of the tractor trailer and put it in the large walk in freezer. So, I went to the back to find a truck at the loading docks, opened and ready to be unloaded, with no one else around. The food was packaged on pallets. I looked around and found a manual lift that could move the pallets. After figuring out how to pick up the pallets, I began trying to navigate the pallets from the truck bed, across the storage area, and through the freezer door that was only marginally wider than the pallet. I managed to unload the entire truck, although not without a significant casualty. I lodged a pallet against the freezer door frame, and managed to completely tear the frame off the doorway. I had to explain to the store manager why they needed a new door frame installed on their freezer. Fortunately, I wasn’t fired for the mistake – I also was never asked to unload a truck again.

On a particularly busy afternoon, I tested out the promise from the CEO that no employee would get in trouble for doing too much for a customer. The phone at the front stand kept ringing and ringing, but there were no supervisors around to answer it. As I was working close by, I could hear the phone and guessed that a customer was trying repetitively to talk to someone. I knew I wasn’t allowed to answer the phone, but I had a minute of down time between customers right as the phone started ringing, so I answered it. The customer asked questions about a certain product we sold – what varieties were available, the pricing, etc. I answered her questions and welcome the customer to visit the store to purchase the item. As I hung up and turned around, the supervisor was standing behind me with a smirk on her face. She told me that I had done a great job with the customer, but that I was not authorized to answer the phone and should never do it again.

I definitely enjoyed my experiences working at the grocery store. It was a great insight and introduction to the business world.

Wednesday, March 3, 2010

Entrepreneurial Beginnings

I’ve always considered myself to be an entrepreneurial type of person. I have a passion for watching business grow and finding ways to make organizations stronger, more efficient, and more successful. While driving to a meeting across the state a few days ago, I began thinking about my first entrepreneurial experiences. I find these experiences now to be amusing and thought they might be something to share that others might enjoy.

My first business experience that I can recall would be in elementary school, probably around 4th grade. As a child, I always enjoyed drawing mazes – often quite elaborate and complex. I used to draw these and give them to people. So, as a child I determined this is something I could do to make money. I put together a book of mazes of all different difficulty levels, designs, and types. I talked with the son of the local grocery store owner who was a fellow classmate about making copies of the book and selling it in the store. Unfortunately, this plan didn’t make it far as I determined it wasn’t feasible due to cost for copying plus the cut that the store owner’s son required.

My next business venture proved more successful. In middle school, I opened a candy business at the school. The business actually began somewhat by accident. I saw a student who charged another student to borrow something, and decided to make a point to him. So, the next day I brought in candy and when he asked for a piece, I said sure – but it would be a quarter. To my surprise, he accepted the offer, and a few other students sitting nearby accepted the offer as well. Seeing an opportunity, my business began. The business lasted only a few months before my family relocated, but was highly successful. I would purchase candy in bulk, set the price for each type, and sell it to students during class. I carried a money envelop where I stored the money received from sales, money to make change, and the credit slips. Each of my “customers” was extended a credit limit based on how reliable they were with paying me back, and credit balances were due at the end of each week. In addition to the credit policy, I set other policies – such as a replacement policy that would replace the candy if it was confiscated by the teacher during class. I calculated and tracked the gross sales and profit nightly and kept books showing how well my business was doing. Although the business only made a few dollars a day, I was on top of the world and thought I was loaded.

After my family moved, I undertook a “construction” job for my parents. My parent’s new property had a creek that ran across the back of the property. The creek was eroding the bank, and had cut into the hillside about 15 feet. So, my parents made an offer that if I would dig an area for the creek in its original spot, they would pay $20. Thinking this would be a project that would take countless hours as the new path would be around 50 feet long, and would need to be dug fairly deep and wide, I declined the project. Thinking about that tremendous “contract price”, I went back to evaluate again the next day. I noticed that, although the new creek bed was lower than the original path, there was a high spot between the original creek bed and the current bed. So, I let my parents know that I would accept the offer and went to work. I dug out a few feet at the beginning of the old creek bed, and used the dirt to make a damn in the creek. The damn caused the water to pool, raising its level to the height of the original creek bed, and the section I dug out routed the water into the original path. The slope of the land forced the water into the original bed. So, after only one hour of work, I collected my $20 payment. Years later, the “Thornton Canal”, as I named it, is still holding strong.

Over my childhood years, I had a few other business ventures, but, these are the most amusing that come to mind. Creating a maze book, running a classroom candy business, and building the “Thornton Canal” won’t exactly propel me to the cover of Fortune magazine, but are certainly a fun early start to a business career.