Leading by Example: Walking Your Talk … Under a Magnifying Glass

Why don’t my people just do what I say?

It’s a common refrain among my executive clients. Life at the top would be so much easier, if only “they” would “get it.”

In fact, your employees probably _are _doing what you say. You just may be saying things you don’t intend. It’s often not your broad proclamations that give direction; it’s the little things you do that have the biggest impact.

Your actions encourage and discourage behavior

Remember when you were a front-line employee. Executives’ actions were relentlessly scrutinized. A late arrival, a smile, or a nod could introduce chaos. A CEO I worked with was looking over his marketing department’s latest campaign. He frowned at a storyboard before strolling away.

Unknown to him, the team saw the frown, scrapped the campaign, and spent the weekend reworking everything from the ground up. When he found out, he was flabbergasted. He never thought a simple frown would change the team’s direction.

Your reactions to employees and their work will send signals. Remember this! If you notice yourself frowning or smiling, nodding or shaking your head when it may send the wrong message, stop. Think about the message you may have sent, and say or do whatever it takes to make sure your audience knows your intent.

Watch your words, too. A joke may not be a joke. A consulting firm’s Managing Director smiled and quipped “Remember, if you’re not here Sunday, don’t bother coming in Monday.” He was smiling. Everyone knew he was joking. And as one team member later told me, “I felt like I had to come in Sunday. Sure, he was joking. But he’s the Managing Director. Maybe it’s not 100% a joke.”

You lead by demonstration

Of course, the Managing Director was there Sunday, thus insuring everyone would know weekend appearances are mandatory. Your actions will, by demonstration, always be the most significant way you communicate standards of behavior and priorities to your company. The Managing Director cared deeply that his people have an outside life, and said so on many occasions. But his coming in on weekends spoke louder than his words in signaling acceptable behavior.

What you don’t do also matters

What you don’t say out loud, the actions you don’t acknowledge, and the signs you don’t show send powerful messages, as well. The messages sent by omission are harder to detect. After all, there‘s nothing there to examine! But there are things your employees might expect that aren’t forthcoming.

If you don’t acknowledge people, it can send a message that you don’t value their contribution. Different people need different acknowledgment. For some, it’s public recognition. For others, it may simply be mentioning “Hey, you did a really great job.”

If you don’t give feedback when someone does a poor job, you send the message that their performance is fine. If someone is screwing up, they deserve to know as early as possible. Otherwise, they’ll walk away with a message that does neither of you any good.

Common courtesy is increasingly rare, and its absence communicates a subtle lack of respect or lack of individual concern. A simple “Please,” or “Thank you” with a smile and direct eye contact takes only a couple of seconds. If you don’t have time even for that, then people will (rightly!) conclude they aren’t important enough to warrant your attention.

Making decisions in isolation quickly lets people know you don’t trust them. I have worked with companies in which the senior managers are very open with their big decisions, and other companies in which “we can’t tell them that” is a common refrain. As far as I can tell, involvement signals faith that your employees have something of value to contribute. When that involvement is missing, the message of distrust is loud and clear.

Not sharing bad news sends the message that everything is fine. It’s easy to keep bad news quiet, for fear of hurting morale. But framing bad news as a reason to rally builds a team instead of breaking it down. Shared challenge is the stuff of bonding. Use it!

A Great Business Leader Knows His Impact

Matsushita, one of history’s most successful businessmen, knew the impact he had on everyone around him. As this story shows1, he even appreciated the messages conveyed by what he didn’t do.

The father of $75 billion empire, Matsushita was revered in Japan with nearly as much respect and reverence as was the Emperor. And he was just as busy.

One day, Matsushita was to eat lunch with his executives at a local Osaka restaurant (Matsushita Leadership by John Kotter). Upon his entrance, people stopped to bow and acknowledge this great man. Matsushita honored the welcome and sat at a table selected by the manager.

Matsushita ate only half of his meal. He asked for the chef, who appeared in an instant, shaken and upset. The Great One nodded and spoke: “I felt that if you saw I had only eaten half of my meal, you would think I did not like the food or its preparation. Nothing could be less true. The food and your preparation of it were excellent. I am just old and can not eat as much as I used to. I wanted you to know that and to thank you personally.”

Concrete next steps

If you find yourself under the magnifying glass, here are ways of mastering the situation.

  1. Don’t get caught off guard. Schedule five minutes at the end of the day to review your day, note who you came in contact with, and simply ask yourself what messages you sent.

  2. Use the magnifying glass deliberately. At the start of the week, choose a message you want to communicate by example. Spend a moment or two identifying exactly where you can send the message, and how you have to behave to send it. Then do it.

  3. Check for messages of omission. During your daily review, ask yourself who you didn’t contact, but who might have expected it (you may not know who at first, but over time, you’ll learn). What message does the lack of contact send? What message will rumors of what you did do send to those who didn’t see/talk to you?

  4. Review company systems. To make sure you’re sending the same message as your company, review the systems once a year or so. Review your compensation plan: what does it communicate about company goals? What behavior does it encourage? Discourage? Review your decision making and feedback processes. Ask yourself if you’re omitting anyone or anything in those areas.

Communicate well!


  1. Matsushita story excerpted from Dr. Mark S. Albion’s Making-a-Life, Making-a-Living ML2 E-Newsletter #56. Free subscriptions and information on his New York Times Best Selling new book can be found at http://www.makingalife.com. ↩

More than one strategy is actually… no strategy at all.

Creating a strategy

My friend Carey’s business had stalled. Since I’m one of those people who loves to offer unasked-for advice (knowing the recipient will be eternally grateful), I offered some. “You need an overarching strategy,” I intoned, sagely. The unfathomable response, “Thanks, but no thanks. I already have lots of strategies.”

Lots of strategies? Hmm. You can’t have multiple overarching strategies at once. But Carey wouldn’t know that, because we’re never taught what a strategy is, or how to make sure you have a good one.

Do you have a strategy? For business? For life? Do you even need one? What is one?

Strategies Aren’t Tactics

People use “strategy” to mean a to-do item, but that’s not a strategy. That’s a tactic. Carey has 16 different products under development at once. Those aren’t 16 strategies; they’re 16 tactics.

A strategy is a directed plan you use to commit your time and action in a single direction. By aligning how you spend your time, your money, your resources, and your communication, you greatly increase your chances for success.

If Carey’s projects include designing a high-fashion clothing line for the Milan runway and opening a Veterinary Pet Grooming franchise, those will compete for time, attention, and dollars. When the clothing line needs another 5-gallon tub of sequins (I never said Carey had taste), that’s money that could have been spent on tick sponge-on. Neither business gets the full resources needed to insure success.

Set a Vision that Drives Your Work

Before you can create your strategy, you need to know where you want to end up. What’s the result the strategy is designed to produce? That’s the vision that drives your work.

Start your strategy by setting a compelling, substantive vision. A vision needs to be specific enough to use to make decisions. It needs to be general enough to allow flexibility in what you choose to do.

My friend Rowan’s vision is “to build a business.” That’s so vague that it could cover everything from fashion design to tick removal… and so it does.

But make it more specific, and it becomes a powerful guide. In an alternate universe where Rowan is capable of focus, the vision could become:

A business that helps pet owners keep their pets healthy 365 days a year[1].

This vision can be used to decide which product lines to enter, and to allow a range of options: tick treatment and nutritional consultation both fit. It can also be used to decide which product lines notto enter: high fashion that features too many sequins[2]. It’s just specific enough to guide a good strategy.

Create a Strategy Linking Your Goal to Your Reality

Now you have a vision. But while visions are great, they’re still too abstract for action. If a new Puppies R Us (We Sell ‘Em, You Care For ‘Em™) opened down the street from Rowan’s storefront, concentrating the business on dog care could be Rowan’s ticket to mansions and private planes. But if the new store is Spiders Galore: Unusual Pets for Unusual People, concentrating on the care and grooming of Brachypelma emilia might make the most sense.

Begin crafting your strategy by linking the vision to your current reality. Assess your resources — what you have a lot of, and what you’re short on. Assess your situation — outside forces that might help or hinder different courses of action. Create a high-level plan that uses your resources to move towards some way to realize your vision, given your current environment.

Rowan can take the pet health business vision, and link it to the things in real life that will make it happen.

Point tactics towards a vision to get the job done right. Then link it to reality.

If Rowan has home office space, an email list of pet owners, and a vast network of veterinarians, Rowan’s strategy could be to form an online pet care referral network. There could be an app, and a website, and a huge campaign to sign up hundreds of veterinarians from around the world.

If Rowan has a retail storefront near Puppies R Us, but no mailing list, the strategy could be to create in-person care for dogs and dog-related issues. Rowan could even propose a collaboration with Puppies R Us where Puppies promotes Rowan’s business and gets a referral fee.

These are two different strategies. Both lead towards the vision of “a business that helps pet owners keep their pets healthy year-round.”

Being in possession of the retail storefront, Rowan chooses the strategy of providing in-person dog-related care.

Keep Your Strategy Clear

Lastly, keep your chosen strategy clear and singular. You might have many tactics that comprise the strategy. Rowan can get the word out in many different ways: online banner ads, leaflets in the local community, and a Puppies R Us partnership. These are pretty different activities, but make no mistake: these aren’t strategies, they’re separate tactics supporting a single strategy.

By having only this one strategy, Rowan can now concentrate all resources on the storefront. If the opportunity comes up to run a nationwide banner ad, the explicit strategy tells Rowan what to do: say “no” to the ad; advertising a Springfield puppy health service in Skokie makes no sense.

Think Strategically Throughout Your Life

A strategy helps you make decisions about where to put your time, money, and attention. We’ve been exploring strategy in business, but you can apply strategic thinking to other areas of your life.

What is your vision for your life? For your family? Your Career? Spend some time forming your vision. Then look at today’s reality, and choose a strategy that will realize that vision as possible in your life today. You’ll get a lot more of what you want in life, and a lot less of whatever random the world throws at you. Then you can put your efforts into tactics that support your strategy.

A scattershot approach to success is a recipe for staying stuck. Avoid this by organizing your tactics and resources using a well-chosen strategy. Align it all in pursuit of the vision that inspires and energizes you, and you’ll soon be enjoying plenty of success, while still having time to stop and pet the puppies.


  1. Closed on February 29th.  ↩
  2. Lack of fit with the vision is only one reason not to enter that particular business.  ↩

JetBlue speeds towards brand destruction

The essence of a strong brand is differentiation in a way that makes customers want to use your product or Service. JetBlue has announced a decrease in legroom and increase in baggage fees in an attempt to boost lagging profits. All I can say is, “idiots.” The entire key to branding is to have strong differentiation from your competitors. In Airlines, the only differentiators are where you fly, your prices, and your service experience.

For JetBlue, service experience has long been a serious differentiator. I would go far out of my way to fly JetBlue instead of other airlines, and I’d pay more, because the experience was just so nice. The fact that the fares were competitive was nice, but I would have paid a premium for the level of service I got.

So now that profitability is lagging, how does JetBlue choose to respond? By attempting to maintain low price position and moving towards a low service position too. Heck, what are commodities for, if not as a dying place for once-strong brands who bow to the short-sighted idiocy that has become the financial markets.

The current JetBlue executives should have their salaries and bonuses clawed back in five years if this does, indeed, herald the beginning of the end of a once-strong brand.

Organizational Learning is No Accident


 
QuestionWhy do companies fail to learn from their mistakes?


 
Answer

With so much riding on success, you would think that companies would be better at learning. Amazingly, it seems as if they fight tooth and nail against learning, often with disastrous results. The reasons, however, make a lot of sense. And once you understand the reasons, you just might be able to make a difference. If not, at least you can feel self-righteous when the insanity starts.

Few of us think much about learning when not in school or in a training environment. But learning doesn’t just happen; it takes reflection and thought. Reflection time used to be built into the world. It took three weeks for a head-office communication to arrive via Pony Express, allowing ample time to ponder and rethink decisions. Now we have overnight letters, junk mail, e-mail, voice mail, fax, cell phones, 30-second-delayed stock quotes, and the expectation that responding immediately is far more important than responding thoughtfully.

Organizations rarely build in time to do thoughtful learning, and when they do, that time is the first to go when emergencies beckon. When we built the original Quicken VISA card, we scheduled a learning debrief and documentation time. But long before the project’s end, other demands squeezed all the slack out of the schedule. The learning review was the first to go. If you don’t do it deliberately, learning won’t happen.

Implementing insights from a learning review is tough. Learning means behavior change. Organizationally, behavior change is daunting.

Think about what organizational change is: It’s changing structure and processes. At the very least, a lot of people must change how they work. Responsibilities, roles, and reporting relationships change. And that’s just in the easy case; learning that your phone system is the bottleneck in your customer service department may demand reworking physical plant and equipment in several locations. Getting the affected people together to coordinate can take weeks. Then new systems must be designed, built, and documented, and everyone must be taught how their jobs have changed. Then there’s still a learning curve for the new procedures. People get up to speed at the new ways of doing things, and only then has the business “learned.” And, oh yes, this all happens in spare time, because the normal workload is still present and has to be carried for the business to survive.

Part of changing the systems and structure is changing the people. A reorg can be done on paper in an afternoon. But changing just one person is hard, even when he or she understands the need for change (Yes, my doctor said to lower my intake of saturated fats, but those cookies at lunch yesterday were so good I just had to eat … six … of them). Ultimately, organizational learning is doomed to failure unless people can learn.

For starters, a lot of learning breaks down because it’s never communicated. Telling someone “Now you report to Sally and your department is no longer sales, it’s account relationships.” still leaves them to figure out how their day-to-day job has changed. They weren’t necessarily privy to the learning discussions, and can’t do anything meaningful without more information about the changes and the context.

Context answers the question “Why is this happening?” It’s especially important when motivating people. People like things to stay the same. But when we find out why the request was made, it suddenly makes sense. Without knowing the “Why?” most change just makes life difficult with no obvious payoff … thus, resistance.

Even if people understand the changes, they may not have the skills for the new job. When Microsoft learned that security matters to customers, Bill Gates proclaimed that all programmers would spend two months just fixing security problems. A great goal, to be sure, but the programmers had spent their careers building systems without regard to security. How can we expect them to suddenly develop the expertise to find—much less fix—any but the simplest security flaws?

And as with any change effort, Microsoft is starting with workers who uniformly lack the skills being developed. Over time, organizational priorities shape the work force. Security-conscious engineers never had a chance to develop their skills at Microsoft, so if they really cared they left years ago for companies more aligned with their style. Those who stayed are the ones who thrive in the “get it out the door and capture the market” mentality. So the change is starting with the employees least likely to intuit how the changes should happen.

Money can come to the rescue by training people. For a simple skill, it can be quick and easy. But training for large skills must be developed, delivered, and practiced. No matter how much we “thrive on chaos” and jump “into the vortex,” new habits take time to develop. Humans only change at a certain rate and we’ve never figured out how to speed that up. The world may change faster than ever, but people just don’t.

The ones who most need to change, however, are the managers. As the organization reshapes itself, resources will shift. That means money and people. Budgets will get slashed. Empires will topple. Even if everyone else is willing, one recalcitrant manager with the right budget authority can halt a learning effort in its tracks. Managers must let go and support the learning for it to happen. Being human, they can have as much difficulty changing their behavior as everyone else.

By now, I’ve probably convinced you that organizational learning is hopeless. But take heart: now that you know why learning is hard, you can deliberately make it easier.

Organizational learning isn’t easy. There’s no perfect solution. Despite the many reasons why learning is hard for individuals and even harder for organizations, it’s just a behavior that can become a habit. Develop the learning habit. Practice moving learning into individual action. Help people change and grow. Over time, the very forces that make change hard will come to your aid: those who don’t like learning will gradually leave, and you’ll attract a culture of people committed to learning. Even when an organization fights it, strong, dedicated action can at least produce pockets of smart business savvy.

How Your Company Can Learn From Mistakes


 
QuestionAny ideas about how to capture lessons learned for a knowledge base—i.e. getting colleagues to NOT fear repercussions of admitting ‘mistakes’ and/or admitting what they did not know?

 
AnswerFirst, the Truth: most of us are afraid to admit mistakes or ignorance for good reason. Culturally, we don’t tolerate mistakes. Since first grade, we’ve been scolded, punished, given poor grades, passed over for promotion, ostracized, and belittled for our mistakes. 2003’s most popular TV series is “American Idol II.” The first several episodes were a countrywide mockery of talentless pop-star wannabes who at least had the courage to take a risk in front of 250 million people. Their reward? Public ridicule.

Sometimes we get the message that mistakes are OK. A well meaning, understanding person—usually from the Human Potential movement—says in a soft, caring voice, “It’s not a mistake, it’s a learning opportunity.” Two days later, the team member who didn’t make the mistake is promoted to team leader. It was a learning opportunity, all right. The learning was, “Don’t screw up, follow the rules, and we won’t punish you. You’ll take home your weekly paycheck, get your gold watch at retirement, and all will be well.”

Society’s message is, “Don’t admit mistakes or bad things will happen.” Before people will embrace their not-knowing, you have to make it safe, even desirable, to take risks.

The organization must support risk taking


Look first to your reward systems. Most organizations reward outcomes: sell the most, get promoted; meet your ship date, get a bonus; meet your earnings projections, get an analyst’s stamp of approval. The rewards come from reaching an outcome, no matter how it was reached. Imagine Laurie, a shoe salesperson for OutcomeCo. Laurie’s sales tactics work on just 1 percent of the customers. Fortunately, the territory is flush with that 1 percent, so meeting quarterly targets is a breeze. Laurie is motivated to milk the 1 percent, rather than take risks to capture the other 99 percent.

And why should Laurie take risks? Risk taking by its nature produces missed targets much of the time. The solution is to reward the learning process as well as the targets. Imagine LearningCo, where the bonus is based on helping the company move faster toward its goals by gathering useful information, developing better ways of doing things, or identifying what not to do again (mistakes). In LearningCo, Laurie is rewarded for capturing the 1 percent, but is also rewarded for noticing market trends, trying cool new sales tactics that don’t work—no doubt involving unicycles, French horns, and a powdered wig—and inventing cool new products that may someday take over the market.

People do what you pay them for, so pay them to learn. Add personal risk-taking plans to your yearly reviews. Ask, “Are you taking enough risks? How can I help you take more?” Applaud in public (and in private!) when someone fails at something wildly, audaciously new. Celebrate whoever has the wackiest new ideas. Otherwise, time spent thinking outside the box is also time spent thinking outside-the-bonus-structure. Given the choice between outside-the-box poverty and inside-the-BMW business-as-usual, don’t be surprised when people choose the BMW.

It’s hard to reward learning in an outcome-based culture; it takes real strength of conviction. Are you willing to pad your schedule with time for failures and experimentation? Will you step up to the plate and give a larger bonus to someone who learned and failed than to someone who reached an important outcome through sheer luck?

A software company rewarded their flagship product’s manager with a Hawaiian vacation when the product shipped. Since the flagship product accounted for 70 percent of the company’s revenue, the manager was given whatever budget and staff he requested to insure success. He had no need to learn; he could just commandeer more resources. Other managers—whose projects were cannibalized without notice for the flagship project—learned to streamline their development and ship on time with limited resources. Taken at face value, it sounds reasonable to reward the flagship manager more than the other managers, yet he contributed much less to the organization’s ongoing strength and capability. By not rewarding the other managers for their learning in a difficult situation, they eventually lost many of their good performers.

Support risk taking one-on-one


Once the organization structures support risk taking, support the behaviors one-on-one. When you see or hear someone pushing the edge of their thinking, step up and ask questions to push further. Brainstorm with them, and walk the example of encouraging people to push their (and the organization’s) edge. When someone has an idea that could lead to great learning, help her pursue it by giving her time and resources.

Also watch how others treat risk taking and mistakes. If you overhear someone making fun of someone else’s mistake or missed targets, ask them, “I wonder if the mistake was because they were trying something new?” Start exploring in conversation whether those present are taking enough risks. If you’re greeted with cynicism and incredulity, “If we did that, we’d just get fired and lose our bonuses,” celebrate! People are handing you their specific objections to risk taking. You can then ask simply, “What would have to happen for you to feel safe enough go out on a limb and try?”

Start learning reviews with facts


Even with one-on-one support for your people, it’s safest to structure project reviews as a review of facts. In fact, there’s no need to make a retrospective personal. Limit analysis to an examination of what did and didn’t happen. Keep personal responsibility out of it, and bring in personal commitment only when the team begins exploring the future. Once learning becomes commonplace, people will become comfortable owning their part in what happens.

At project reviews, the team will assume that its own behavior was flawless. The ubiquitous “they” was the source of all problems. “They” delivered materials late. “They” passed restrictive legislation. “They” didn’t provide the needed direction or focus. A team must get “they” out of its system before considering its own part in what happened.

Have everyone gather together facing a whiteboard (so it’s “us” vs. the whiteboard), and make a big list of everything that went wrong, no matter whose fault. List facts without judgment. If specific people are mentioned, remove the blame and just describe circumstances. “Bob handed in the report late” would become “Report handed in late.”

Then make a second list of all the good things that happened. Be specific. “We supported each other” is too vague. “We stayed late and took on each other’s work in order to meet a tight deadline” is just about right. At the end of this exercise, you’ll have a list of specific actions that can serve as a jumping-off point.

For each “bad” action, ask the team:

  • What choices could we have made to avoid the bad action?
  • What choices did we make that should have been avoided?
  • What misinterpretations of events, motivations, and actions did we make that led to the bad action?
  • What were the correct interpretations?
  • What do all these imply about what we should and shouldn’t do going forward?


For each “good” action, ask:

  • What did we do to cause this?
  • Is there anything we refrained from doing that allowed this to happen?
  • Did our interpretation of events, motivations, and actions help this action come to pass?
  • What do all these imply about what we should do and shouldn’t do going forward?

What you’re after is team learning. If Bob handed in a report three weeks late, the only question that mentions Bob is the question, “How can the team help Bob get the report done on time?” By discussing facts and framing the team’s involvement as one of future joint responsibility, you are shifting from a frame of “Who did what right/wrong?” to “What happened, and how can we help it happen better next time?”

Cultures—learning or not—become self-fulfilling prophecies. If your company has a conservative culture, it’s probably full of people who self-selected not to take risks and not to admit mistakes. Shifting that culture means addressing fears with substance: make sure your organization supports risk-taking in its rewards and performance measures. Model that support in your daily interactions. And even then, you’ll get the best learning when you carefully separate judgments from facts, and keep people engaged in finding solutions rather than rehashing blame. Our society does a great job of squelching learning instincts, but with patience, care, and precise communication, you can make it safe for a group to re-create a culture of learning and exploration.