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.

Sunday, February 21, 2010

Experience versus Capacity

What should a company look for when hiring new team members? During nearly every interview, the employer will ask the candidate about their past experience – where they have worked, what they have done, what level of responsibility they have had, and what successes they have had. It stands to reason that these types of questions and understanding what a candidate has done in the past are great predictors for how the candidate may do if employed within the organization. However, having been through the interview process many times on both sides of the table (both being interviewed, and interviewing candidates to hire), I see that many companies seem to interpret this information very differently.

Some companies interview candidates with the hopes of finding someone with experience as close to matching the job being interviewed for as possible. The successful candidate will have done the exact same job in the same industry, using the same tools, and in as close as possible to the same environment. It stands to reason that if someone has completed this role with similar variables in the past and been successful, they have a high chance of being successful again. This is a safe bet. But, a safe bet also often yields the lowest returns.

Over the years, I’ve hired a number of software developers to serve on the development teams that I managed. We were exclusively a ColdFusion development shop – ColdFusion being the web scripting language used to create advanced web based software applications. During an interview, I once asked a candidate if they had done any work with ColdFusion, they broke out laughing. The candidate had never heard of ColdFusion – other than of course the scientific research of nuclear fusion without producing heat - which would be a fairly absurd question for a software developer’s interview. This, however, didn’t prevent me from ultimately extending an offer to the young developer to join the team.

What I look for in team members for any role is not what they have done, but, what they have the capacity to do. This isn’t to say I didn’t go through their experiences heavily, quite the opposite. As I review the work experience of a candidate, I’m looking for how they were able to work within an environment with the given constraints and variables and be successful. Were they able to use what was available to produce results and advance? Did they demonstrate creativity and ingenuity? Was their work rewarded with progressively more responsibility and new challenges?

Of course, there is some degree of requirement based on experience. For example, as intellectual as a brain surgeon might be, I wouldn’t hire a surgeon to be a software developer if he had never looked at code. So, for a software developer, although I wouldn’t care even he had ever heard of ColdFusion, I would look for him to have developed some type of web based applications. For a management position, I would expect them to have led a team and demonstrated strategic and operational successes. Things such as industry, tools, and even scale are things that can easily be learned and quickly grown into for a candidate who has a demonstrated history of successes.

For me personally, I always want to be learning new things and growing professionally. If I were looking at a position where I had already done everything involved, I really wouldn’t want to do the job again – where would the challenge be in that?

There is certainly a purpose for both types of hiring. If you view, and need, a team that are essentially specialized tools to accomplish a certain task or job, then your goal would be to hire individuals who have the specific experience needed. However, if your needs and views are to establish a strong organization that will grow and perform above minimum requirements in varying environments and circumstances, experiences are merely indicators of past successes, not a list of future capacity. Everyone who has managed a team in any kind of an IT environment knows that one rockstar employee can outperform two or three average employees in productivity and results. So, if you are trying to locate a rockstar, your best bet is to look for people who are adaptable, team oriented, able to engage their environment to produce successful results, eagerly accept responsibility and accountability, and respond to challenges with exceptional results. If those are the qualities of the individual you need on your team, things such as tools, methodologies, technologies, industry, and scope are of little significance. This is the approach I’ve taken to hiring and had the fortune of building outstanding teams that produce amazing results.

Monday, February 8, 2010

Servant Leadership

It seems there are as many different leadership styles as there are leaders. That actually makes sense, as a strong leader looks at many different management and leadership styles to develop their own ways to be effective and successful at leading teams. One leadership style that has been influential for me is the concept of Servant Leadership.

Servant Leadership essentially takes the organization chart and flips it upside down. The idea is that each level of management in an organization exists to support those at the next lower organizational level. This goes against what many people think – that teams exist to support the manager. In order for the company to be successful, the work to get finished, and the final product or service to be delivered to the customer, it is obviously critically important that those doing the work are empowered to do their jobs, and they have all the tools and resources necessary to accomplish their tasks. As a manager within an organization, you have the power to acquire and provide these tools and necessary resources to your teams. Therefore, your strength as a manager and a leader relates to your ability to serve those who report directly to you. The role is to make sure that they have everything needed to accomplish their work. This involves making sure you are available to your team and receptive to their needs, clearing their paths to allow success.

While a large portion of the role of a manager or leader is to empower their staff, this isn’t to say this is their only role. As described in previous posts, of critical importance is focusing on continuous improvement in processes, organization, motivation, and morale. The manager is responsible for setting policies, initiatives, and direction for teams. The concept of servant leadership can be applied to all these areas and also provides a degree of humility when embraced by managers of all levels.

Sunday, February 7, 2010

How to Overcome Being Good

There are a lot of good companies. Companies that provide good service, a good product, and a good experience. Good… but not great.

I read a book several years ago called “Good to Great” by Jim Collins. This was a great book that talked about the differences between companies that did “ok”, and those that really excelled. The book made a bold statement that has really impacted me over the years – that the biggest hurdle to overcome in becoming a great company, is being a good company. Essentially, once a company becomes “good”, they don’t strive to change things to become great – they settle for just being good.

I’ve spent a lot of time thinking about this idea and contemplating what makes a company great. It’s easy to think that hard work towards your goal is what yields the great results, but, I don’t think this is true. I think hard work will make you good, but, focusing on “working hard” makes you miss the aspects that can make you great.

In my career, I’ve had the opportunity to learn from different types of managers. Some who I consider true leaders whom I respect greatly, and others who are merely managers organizing activities. In order to stay on topic, I’ll save my definition of what makes someone a leader versus a manager until a later post. For the sake of argument I’ll compare two fictitious managers. These aren’t based on actual people I’ve worked with, more just a composite of different management styles and various individuals.

The first manager, who we’ll call Alpha, worked hard every day. He managed his teams of employees by ordering them to work more and more and setting high expectations for the amount of work to be completed. He, and his teams, would work late into the evenings, struggling to ensure all work was completed, all customer concerns were addressed, and nothing was left undone. Alpha knew that, because of his experience and skills that had made him the manager, he could get more work done than anyone else on his team, so, he worked side by side with his team to get the work done. Through hard work, dedication, and commitment to the company, they got the work finished to serve the customers.

The second manager, who we’ll call Beta, also worked hard was completely dedicated to the company and its success. This second manager, however, took a very different approach. While he knew that he could do the work, and do it well, he chose to let his team do all the work instead of working alongside them. Instead, he spent his time analyzing what was being done, why it was being done, and how it could be done better. Additionally, he spent his time thinking about the actual team members – were people doing what they wanted to be doing, did they enjoy their work, were they properly motivated, did they feel appreciated? He was able to identify ways to make things more efficient, better motivate the teams, and provide better service. His teams delivered the results needed to serve the customers as well.

So, who is the better manager? Both are delivering the end result to the customer. The difference - Alpha helped foster a good organization, Beta built a great organization. I think this is a common trap that managers fall into, and I’ll admit that this is a trap I’ve fallen into in the past as well. There is just so much work to be done that the goal is simply to get “done”. When you look at it this way, it becomes clear why an organization would be relegated to being “good” if the managers simply view their goals as getting to “done”. Beta, however, empowered and trusted his staff to get the work finished and made sure his goals were beyond simply finishing the work at hand. Beta looked for ways to continuously improve the organization, better serve the customers, and improve the lives of those who worked for him. By never settling for being “good” – just delivering the expectations – Beta will build a strong, great organization.

In practical application, however, it may not always be possible for a manager to be either like Alpha or Beta, and may need to be a combination. A good manager (and leader) needs to know when it is necessary to get his hands dirty and actually work with his staff to get the work done. This actually is necessary at times just to understand what is actually being done and maintain the perspective of the worker, not to mention great for the morale of the team members. Depending on the size of the organization, it may be necessary for managers to actually produce the work alongside their staff just to ensure everything gets finished. The challenge that every manager must overcome is ensuring that no matter how much effort is required in working alongside the staff, they don’t forget to be continuously strategic in thinking of ways to improve the organization, processes, and better serve both their teams and their customers.

Stimulus Vs. Response

As I discussed in my previous post, I am a big fan of Steven Covey’s 7 Habits of Highly Effective People. One of the stories he relates is that of a Viktor Frankl – a prisoner of a Nazi concentration camp. Despite the horrible torture and treatment that Frankl was subjected to, he maintained that he was more “free” than his captors. While his captors were bound by both responsibility in their duties in the prison and by their hatred toward those they held captive, he was free choose his own response to whatever happens to him.

I found this story to be extremely powerful. It is hard to imagine someone under these circumstances who wouldn’t consider himself to be a victim and give up all hope. Instead, he remained resilient and strong. Applying this concept to your life gives you such power and control.

How often do you find yourself saying something like, “he made me mad”? I know I certainly do. But, if you think about this statement and relate it back to the lessons from Frankl you realize it makes no sense. Mad is your response to whatever the person did. You have the power to choose your response. So, no one can make you mad, you can simply choose to be mad in response to the actions of someone. To say that they made you mad gives them the power to control your emotions.

This all boils down to a common problem – the victim mentality. People who choose to give away their ability to control their responses. These are people who blame those around them for their mood and all of their problems. All of the misfortunes in their life are the results of those around them, out of their control, leaving them completely free of blame and a victim to their circumstances. Once you realize that you can control your response to everything that happens to you, you gain the ability to be more logical and think with your mind instead of your emotions. This gives you a far more positive attitude and outlook on life.

This is, of course, easier said than done. I think it is just human nature to immediately react with an emotional response when something negative happens. Even as a strong believer in this theory, I still find that it is work to overcome the initial emotional response with a logical, beneficial response. Depending on the stimulus, this can be extremely difficult.

I tend to think about this concept a lot whenever I am stuck in heavy traffic. Obviously, no one likes to be stuck in heavy traffic. I tend to find myself becoming frustrated and upset, and have to remind myself that I am choosing to be frustrated, and that being frustrated won’t benefit me in any way. Instead, I think about the fact that it gives me time to listen to the radio or contemplate the world. Similarly, when someone cuts me off in traffic or nearly hits my vehicle, despite my initial desire to yell at them, I just think that there is no reason to be angry, that would just ruin my day and put me in a bad mood, and with all the great things in my life someone cutting me off in traffic has no effect at all in the grand scheme of things. When I see people who become visibly angry in traffic reacting to those around them, I feel sorry for them. Their days are being ruined by their inability to control their emotions. I often wonder how bad their lives must be if they get so angry over something that is really so minor in the grand scheme of the world.