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Social Media for Business – Why I am embarrassed for 99.9% of you…

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My kids get it. They don’t think about it; they don’t hire gurus to guide them through it; they don’t contrive anything about it; and… they can sniff out anything contrived in an instant.

It’s social media, and it’s not mystical or complicated; and it especially doesn’t require any real expertise.

Of course, if social media is so easy, why do nearly all small to medium-sized businesses (SMBs) really suck at Facebook and Twitter? Three reasons: they overthink it; they hire gurus to guide them through it; and what they post is often so contrived I want to laugh and cry at the same time.

It’s time to stop the madness. It’s time to either crap or get off the pot with your lame social media attempts. If you’re ready, I have only two quick tests for the content you should post to your social media accounts:

Test 1: Will it inform or entertain?

In other words, will it be interesting to anyone? More importantly, will it be interesting to your customers and prospective customers?

If what you’re about to post neither informs me nor entertains me, then don’t post it. Here are a couple of quick examples of posts that would pass Test 1:

  • A young couple posts a picture of their new baby to Facebook while Tweeting “It’s a Boy!!!” (This passes the test because it’s information that their followers and friends likely want to know.)
  • A teenager posts a Vine (6-second video) to Twitter showing his friend eating a jalapeño pepper and then gagging. (This passes the test because it’s likely entertaining to his friends… not to mention entertaining to me.)

Here are two actual SMB social media posts from this morning that do not pass Test 1:

  • Happy Friday!
  • Come in to Sport Honda today for a test drive.

These two posts are just downright embarrassing. They are pitiful. It hurt me to even type those asinine posts, because they are so uninformative and utterly unentertaining.

But what about Google?

(Quick aside for all the SEO “experts” reading this article)

I’m not naïve. I understand search engines look for “social clues” as a small part of the algorithm they use when deciding how to rank your website on relevant searches. But you’re naïve if you think the gaming, cheating, conniving scheme your social media guru is executing on your behalf has any long-term SEO value. It doesn’t. Google did not become Google by allowing any con jobs to go on for very long.

(Plus, without getting too technical, the social clues Google looks for include interactions with your social media content. No one is interacting with your “Happy Friday!” or “Come in for a test drive” spam.)

Let’s agree to just stop it. You look silly doing it and you’re alienating the few true fans you have.

Test 2: Is this me?

Some people find news stories about Bangladesh to be informative. Some people find pictures of cats to be entertaining. Does this mean your SMB should post a story about a pet store in Narayanganj complete with lots of pictures of playful kitties?

Probably not. That is, unless, you happen to own a pet store.

For the second test, you need to look at your entertaining and/or informative post and ask “Is this me?” Does this content represent who we are and (more importantly) what our customers want from us? If the answer is no, then don’t post it – the content failed Test 2.

That’s it. Nothing more, nothing less. (Sorry, I know you wish it was more complicated – and I certainly know the social media “experts” will disagree with me – but there’s really no magic or mystery here.)

So what do we post?

If after Test 1 and Test 2 you are left with nothing to post, then I suggest you shut down your social media accounts. Your business has nothing to offer the social media world. Stick to fixing air conditioners or whatever it is you do. Just make sure you do those things right, and that you always treat your customers like the valued human beings they are. If you do this, perhaps they will post nice (and interesting) things about you.

As I wrote two years ago, Facebook is a waste of time for 99.9% of businesses… and it still is; you just don’t want to believe it. If you’re adamant about staying in the social world and creating genuine interactions with your customers, then at least apply my two tests to your content and save the rest of us from the constant stream of ridiculous spam spewing from the average SMB account today.

 

How TrueCar.com Caught Car Dealers Off Guard

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The Internet is (finally) introducing progress to the car business… whether automotive retailers like it or not.

While the Internet itself has so far been little more than an evolution of how car dealers do business (think about it: dealers have been receiving and responding to sales leads from Internet customers for more than fifteen years, yet most dealerships still see less than thirty percent of their sales coming from these online customer inquiries), what TrueCar will bring to dealers is nothing short of a revolution… and most dealerships aren’t prepared.

TrueCar’s business model is designed to eventually eliminate car dealers. For now, they seem content with just getting rid of the pesky commissioned car salespeople. If TrueCar gets their way, every car dealer in the country will provide the actual selling prices of their vehicles up-front; with no haggling. This, it seems, has gotten some in the industry a bit peeved.

“It’s not too late to put this beast down,” commented one such peeved industry veteran about TrueCar on one of the leading automotive dealership forums, DealerElite.net. Others on the site are calling for government investigations and dealer boycotts of TrueCar.

Can they put the beast down?

Forget for a moment how good their model of showing a guaranteed selling price is for consumers, TrueCar still needs car dealers to pay them $299 to $399 per vehicle sold or TrueCar will simply go away. If dealers truly abandon TrueCar, then what?

Unfortunately for the TrueCar detractors, there are two unstoppable forces at work that guarantee that even if TrueCar crashes and burns, the TrueCar business model will not only survive, but eventually become the industry norm. These forces are competition and consumers.

While there have probably been hundreds of dealers who have dumped TrueCar as a provider of sales leads since the industry call-to-arms officially began in November, there have likely been hundreds more who’ve signed on. Dealers, you see, want to sell cars; TrueCar, it seems, actually helps them do that. The competitive nature of car dealers simply won’t allow them to leave these sales leads to their competitors.

From a consumer perspective, one might ask “what took so long?” Why is it we can discover the actual selling price of everything from iodine to iPads before we ever leave for the store, but with cars we still have to haggle as if we’re walking through the Istanbul Grand Bazaar? With or without TrueCar, consumers were already moving toward no-haggle pricing for their vehicle purchases. TrueCar accomplished just one thing that had not been successfully deployed before: displaying the final selling prices of identical vehicles from competing dealers… and this, you see, removed the dealers’ greatest advantage in the car deal.

Why would dealers ever knowingly give up their advantage?

It only took a few car dealer indiscretions to allow TrueCar to get into the position of radically reforming the way new cars are sold to the public; and nearly all of these are examples of failed leadership at the dealer level.

Because most managers of car dealerships got to their level without the assistance of a solid training program or a heavy focus on process or process improvement, it’s no surprise that they “lead” with virtually no focus on these, as well.

Automotive retail provides some of the best examples of bad leadership, likely due to its history (“no one trained me, why should I train anyone?”) and its unbelievably high turnover rate (“why train my salespeople, when they’ll just end up working for someone else in a year?”). Additionally, car dealers have survived for years without the need for formal training programs or progressive leadership; why should anyone think they need these today?

With no focus on training or continuous process improvement, most dealership Internet sales managers – the ones who should have seen TrueCar coming and warned the others – were so busy playing with Facebook and Twitter; so busy thinking they were in the technology business that they never even realized they were in the business of selling cars at a profit. Of course, for most Internet managers, it didn’t help that since they receive almost no respect or support from the other managers in their store – including their direct supervisors – it is doubtful anyone would have listened to them about TrueCar anyway.

Interestingly, the dealerships that wasted (and continue to waste) countless hours and dollars to perfect some social media identity generally feel that social media is a revolution in the auto industry – while missing the true revolution: transaction price transparency and the guaranteeing of transaction prices via the Internet.

Not all dealerships want to put the beast down…

The dealership owners and general managers who never fully embraced the idea of selling cars online are the ones that are the most annoyed by TrueCar. They are the ones rallying their local state associations and regulatory agencies to protect them from themselves. Progressive dealerships – those organizations where everyone is pulling toward the same goal; and where the future brings opportunity, not uncertainty – are comfortable with the move to TrueCar. Many of them got rid of commissioned salespeople years ago.

In his book, Adapt Or Die: How The Internet Is Destroying Dealer Profits And What To Do About It, Kurt Baumberger warned of this phenomenon three years ago. Did any dealers listen? Perhaps a few, but for the most part, dealers continued to run things as they always had: heavy on telling and yelling; light on teaching and improving.

What is most surprising to me is that anyone is surprised. There has been a race to the bottom in automotive retail since the first online listing of vehicles became available. I think what is also surprising is that it’s taken until 2012 for this to become a reality in automotive retail.

Progress happens…

TrueCar is merely the first. Soon, industry leaders like Cars.com and AutoTrader.com will have to insist that dealers post guaranteed pricing on their new vehicles or consumers will simply flock to TrueCar (and the soon-to-emerge clones) to avoid the hassles of negotiating.

To those outside of automotive retail, the TrueCar detractors are probably starting to resemble what the horse-drawn carriage makers, smithies and groomsmen must have looked like as the first automobiles started rolling off assembly lines over 100 years ago. Cursing progress does nothing but make those doing the cursing seem small-minded and naïve.

The thing about progress is that it progresses – whether those in the way of progress like it or not. The progress that is radically changing the car business today has been moving like the lava flows of Hawaii’s Kilauea volcano. It has been slow and deliberate, but it’s gaining strength. You can try to divert it; but you cannot stop it. It is steady and it is devouring everything in its path.

So is TrueCar a consumer’s best friend?

I think there might be genuine concerns over how TrueCar acquires and manages private customer data; but I think the real threat they hold over car dealers is their guaranteed up-front pricing. They could get rid of their silly bell curve and no longer aggregate sales transaction data; and their effect on the industry would remain unchanged. They could also stop telling consumers what dealers paid for their cars, as this information is irrelevant in the transaction and has been available online for years, anyway.

(In the interest of full disclosure, I was first exposed to the TrueCar bell curve in 2009 – which showed what consumers had paid for similar vehicles – and I was impressed. Back then, I felt it would be a game-changer for TrueCar.com. Since then, TrueCar has expanded their online offering to include certificates guaranteeing what consumers would pay from member-dealers for a given vehicle. This innovation, coupled with pitting dealers against each other on a single webpage, made the bell curve unnecessary. Now the TrueCar bell curve is nothing more than worthless eye candy.)

With some in the industry mad as hell about TrueCar’s use of data, it is interesting that as recently as this past weekend, TrueCar CEO Scott Painter was quoted bragging in a New York Post article about the plethora of data sources his company employs to produce their useless bell curve. “We collect information from consumer reports, insurers, lenders, government records and other industry sources in addition to what the 5,400 US dealers provide so we can decipher the true cost of a new car,” said Painter; clearly oblivious to the government’s and the public’s feelings about data privacy.

Everyone is missing the point…

Consumers, if asked, would likely tell you that they don’t care how much dealers paid for a car; “just tell me how much I’m going to pay.” Dealers, because they hid even the latter information from their buyers until they’d successfully worn them down in the dealership for a few hours, have no one to blame but themselves for the growth of TrueCar.

When we buy a book on Amazon.com, we don’t care how much Amazon paid for the book or how much profit they make from the sale. We only care about the transaction price, the delivery terms and the service before and after the sale. The same is true of buying a car. Why should I care if the dealer who sold me my last car made $5 or $5,000? All that mattered to me was the price I paid, the delivery terms and the service before and after the sale.

If TrueCar wasn’t so busy trying to get every scrap of data from every consumer vehicle transaction, they might realize that the TrueGold they provide to consumers occurs when they pit dealers against each other to post guaranteed selling prices. Of course, just as car dealers suffer great leadership voids, so does TrueCar, it seems. CEO Painter comes across as an egomaniacal prick (which, more often than not, means he probably is an egomaniacal prick to everyone around him); he also seems to truly relish his role as the villain to his paying customers: the car dealers. (Not a smart move, if you plan to withstand the inevitable competition for the long term.)

Sincerely, TrueCar Dealer Development Team…

To their dealer-customers, TrueCar behaves more like a government agency than a trusted partner; and their customer communications are signed by divisions and not people. It will be easy for dealers to dump them once real competition emerges or the major online classified websites begin posting guaranteed prices for new and used cars (and thus start driving leads and sales, instead of just expensive branding).

What won’t be easy for dealers is to get this horse back in the barn. If comparison shopping is a way of life for consumer seeking a $500 HP, what makes anyone think it won’t quickly become the norm for someone considering a $30,000 Honda? The leaders in the automotive space understand this, because leaders understand progress and they take advantage of it – even if it means destroying a business model that works today.

The leadership lesson in all this for those in and out of automotive retail is two-fold: First, business owners and their senior leaders must take a stake in the innovations brought on by technology (and not leave this to some “Internet manager”); and these same leaders need to find ways to leverage the inevitable change to their advantage (or they need to be ready to do something else with their lives).

Like it or not, progress has come to automotive retail; and it’s not going away.

 

Not all User Generated Content (UGC) is Valuable – Exhibit A: Mixtent.com

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If you have more than a few connections on LinkedIn, then you’ve surely been exposed to the most asinine website dedicated to UGC since CompanyNameSucks.com: mixtent.com. (You’ll have to learn why CompanyNameSucks.com is asinine all on your own, I’m going to use the rest of this blog to tell you why I think you should opt out of mixtent.com – and opt out quickly.)

I’m not the first to write it, but the Internet really is just one big bathroom wall. Often it’s just a place where anyone can express any opinion at any time with little or no recourse. The difference, as I see it, is the Internet is filled with small-minded billionaire wannabes who will gladly stomp on your privacy and dignity while they construct a new enormous bathroom wall and then encourage others to step up with their Sharpies and write whatever the hell they want without any regard to the veracity or value of their opinions.

This, my friend, is the essence of most sites 100% driven by user generated content. The rub for those of us who just want to live our lives in honest and ethical fashions is that without users generating content (any content) these sites will not be able to be flipped for the billions the founders expect. We, you see, get included in this content whether we deserve or even want to be included.

Enter mixtent.com

I doubt there has ever been a more ridiculous, misguided or pointless effort allegedly directed at professionals and cloaked in some misstated mission about helping sort the wheat from the chaff when it comes to which person is better at what skillset. This site is nothing more than a HotOrNot.com for professionals, only this one ranks you without your permission.

The primary problems with mixtent, as I see them, are two-fold: 1) You are ranked as hot or not on a multitude of skillsets by those in your LinkedIn network – whether you want to be or not, and regardless of whether or not this particular contact has seen you demonstrate this particular skill; and 2) Like all ranking, rating and review sites, this one can be gamed. In fact, mixtent (in my opinion) seems to be actively participating in and encouraging the gaming by helping you send messages to everyone in your network that you’ve just ranked them… now will they please go and rank you.

Here is one such auto-generated message: “My Entrepreneurship percentile is 89%. Help me increase it and find out where you rank…” This is followed by a link to join mixtent so you can start ranking others.

The ranking process is really a joke because you are presented with two of your LinkedIn contacts (who may not have opted in to mixtent, but have certainly not opted out) and you are asked which of these two is better at __________. The tendency for most human beings is to give the nod to the person they like or know the best, not necessarily the person most deserving of the honor.

This means a well-liked dufus is likely to rank higher on most skills than a hard-charging doer. (My guess is that most hardened, yet accomplished women executives will be butchered on sites like this, as they generally had to step on one or two toes on their way through the glass ceiling.)

Okay, How Do I Opt Out of mixtent.com?

The greatest part about all of this nonsense is that you cannot opt out of mixtent.com without first granting them access to your LinkedIn profile. That’s right, you have to first let them suck all of the personal and other information from your LinkedIn profile before you can tell them you don’t want to play their shitty little game.

That, my friends, is ballsy. Of course, once you’ve opted in, you can (as of this writing) fairly easily opt out by clicking on the tiny “opt-out” link at the very bottom of the homepage.

Interested in mixtent.com’s About Us page?

I thought it would be fun to read between the lines of mixtent.com’s About Us page (the bold text in parentheses is mine):

About Us

Our goal is to help you connect with the most talented people. We want to help you hire, get hired and find talent to do amazing things. (We just don’t think you’ll be able to do that by using this website.)

Mixtent is building a professional reputation graph on top of the main social and professional networks. We believe we can become a driving force in making online recruitment and talent management materially more efficient. (Or, at the very least, we can help companies find unqualified people who have the most friends or don’t rock any boats… ever.)

Mixtent is built on the core notion that collective intelligence gathered through engaging experience can provide the right data to solve the hardest problems online. (That is, are they hot or not?)

Our mission is to reduce structural unemployment driving down asymmetries of information and increasing liquidity on the labor market. (What the fuck?)

We are looking for crazy talented engineers. Take a look at our jobs page (Why do they need to have anyone apply? Don’t they already know who the crazy talented engineers are by just looking at the ratings on their own website?)

We are located in Redwood City, CA. (Okay, finally something I can believe here.)

How about the geniuses behind this monstrosity?

Here are the links to the LinkedIn profiles of two guys listed as Founders at mixtent.com (in case you are a crazy talented engineer in Redwood City looking for work):

http://www.linkedin.com/profile/view?id=6037432

http://www.linkedin.com/profile/view?id=23979582

Oh, and if they’re already in your network and haven’t opted out of mixtent just yet, be sure to rank them appropriately.

Kain and Stauning Release Comprehensive Study – Lots of Leadership Lessons Throughout

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After nearly a year of studying the inner workings of successful automotive dealerships’ Internet sales efforts, David Kain from Kain Automotive and Steve Stauning from pladoogle.com have released their groundbreaking study showing the activities and actions that truly drive Internet sales success for today’s automotive dealers. Their conclusions are expected to shape the structure and content of automotive dealership sales efforts for years to come.

Kain and Stauning, industry veterans in the automotive digital marketing space, spent countless hours evaluating successful Internet sales operations and reviewing the data from nearly 4.3 million sales leads to uncover the fifteen most impactful activities car dealers can undertake to ensure they are successful with their Internet sales efforts.

“With so much being written about the relative impacts of social media, David I felt like it was time to take a deep dive into what was truly driving sales for successful dealers,” shared Stauning. “In fact, the automotive blogs were so gaga over social that it seemed no traditional online marketing source had any value.”

To the contrary, reveals the study (which began with case studies involving third-party leads and evolved into a deeper study into what drives Internet sales success for today’s dealers). Both Kain and Stauning felt that their consulting clients were benefiting from a robust lead mix (including third-party leads), but they had no way to disprove the theories being bandied about by the most vocal on the industry blogs.  The boisterous few on most automotive marketing websites were shouting that dealers should abandon these tried and true leads in favor of focusing 100% on first-party leads and social media.

“Nothing could be further from the truth,” piped Kain. “Our study results are clear: Dealers who want to be truly successful with their Internet sales efforts need to cast a wide net… and that net includes traditional third-party leads.”

Among the most impactful activities that separate successful Internet dealers from their middling competitors are the obvious factors like quality of lead response and the adherence to a written process; though the study revealed a higher level of importance for some not so obvious factors like middle management support and level of accountability.

“We were a bit surprised that sales, desk and F&I mangers had such an impact on a store’s Internet sales success,” added Kain, “we knew there were dealerships where these managers can be roadblocks to Internet growth, we just didn’t realize the extent to which their honest support and buy-in would catapult a store’s Internet sales.”

The study, available at KainAutomotive.com and on the Kain Automotive Idea Exchange, provides dealers and their managers a compelling and comprehensive overview of the model Internet dealership by providing real world examples of successful dealerships. Moreover, Kain and Stauning weave their own industry knowledge into the study where appropriate to help dealers learn how they can leverage all fifteen of the factors/activities identified.

 

The New Learning Gap: Business Leaders Know Little About The Internet

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Today’s Leaders Are Tomorrow’s Followers

 

For some reason I’ve run into too many business leaders lately who know less and less about how their businesses are being marketed on the Internet. From owners and CEOs to vice presidents and general managers, leaders (even good ones) are getting further detached from the realities of what truly drives their bottom line.

 

With virtually all of their customers now virtual, you would think these leaders would hunger for knowledge about digital marketing – not so. In fact, some of them seem downright fearful, and any leader afraid to learn about what makes the Web tick is destined to be a slave to the very people he is tasked with leading.

 

Rather than recreate the wheel, there’s a great article on the subject and how it is affecting car dealers at the automotive industry blog DealerRefresh.

Stop Managing Activities and Start Seeing Results

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Keep Everyone Busy So You Can Kill Creativity

In the current economic climate (one that we’ve dubbed The Great Necession), it seems that companies are so concerned about productivity that they’re forgetting about innovation and creativity.

Whether we’re all trying to cover our asses as managers or whether we truly believe that micromanagement and piling on the busy work is the key to survival during The Great Necession, we have become obsessed with ensuring everyone still employed is constantly busy.

Understandably, many workers are doing their job and that of their laid off former coworkers; though even this doesn’t explain what we’ve observed over the past several months in workplaces across America. Too often to be a coincidence, we’ve watched in disbelief as more and more managers unnecessarily micromanage the activities of their charges in an effort to magically drive more output.

We’ve become so concerned with keeping everyone busy that we don’t leave time for our employees to be creative or creatively solve problems.

Manage the Results, Not the Activities

Often because they don’t fully understand the goals, junior managers fall into the trap of managing or micromanaging the activities of their subordinates. When desperate, even seasoned leaders will sometimes scramble to drive productivity through the micromanagement of daily activities.

The Great Necession has created more than a little desperation in the workplace.

The key to reaching your team’s goals as leaders is to clearly identify the goals and then monitor and manage the output of those contributing to the achieving of these goals. When you try to manage the inputs (the activities) instead of the outputs (the results), you most often find you’re driving fast, though in the wrong direction. Additionally, you cannot hold your subordinates accountable for the results that the overly-managed activities attain.

When you tell someone not only what to do, but also how to do it, you own the results – good or bad.

We Need Creative Problem Solving to Solve Our Current Problems

Left to their own accord, people will always find ways to do it cheaper, faster, better and safer. If you’re micromanaging their activities, you leave them no time to improve your products or processes; and thus, no time to help pull your company through the tough times.

As leaders, it rests on us to guide our companies through this economy. Your people are counting on you to do just that. It’s time to lead again: Resist the temptation and stop managing the activities and just manage the results. It’s easier. Of course, do this only if you want creative solutions to your company’s problems.

The Truth about Cash for Clunkers

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Leadership Decision Making and The Law of Unintended Consequences

Certainly you’ve heard the axioms “nothing happens in a vacuum” and “for every action there is a reaction” before. We’re pretty sure that every thinking adult not only understands these sayings, but also believes them to be true.

Cause and effect, means and ends, seed and fruit cannot be severed; for the effect already blooms in the cause, the end preexists in the means, the fruit in the seed – Ralph Waldo Emerson

RWE is correct, but he fails to mention that each cause actually has multiple effects; every mean leads to numerous ends; and that each seed can bear bushels of fruit. Cause and effect, like means and end, can imply both good and bad outcomes; and both scenarios – unlike the planting of a seed – often create results that are unintended and unforeseen.

The law of unintended consequences is not a new phenomenon, and it’s especially not new to government action. History has shown at every turn that government intervention, regardless of the benevolent intention, leads to numerous unforeseen and unintended consequences. Certainly, some of the outcomes are beneficial, though the vast majority are not.




The Truth about Cash for Clunkers and The Law of Unintended Consequences

In a nutshell, the US Government created a program that requires taxpayers to spend $3 billion help 750,000 people to buy a new car. The program, officially the Car Allowance Rebate System (CARS) though more commonly known as Cash for Clunkers, was created solely “to energize the economy; boost auto sales and put safer, cleaner and more fuel-efficient vehicles on the nation’s roadways” – this, according to the government’s official cars.gov website.

While nearly everyone in Washington was breaking their arms patting themselves on their collective backs after just two weeks of CARS, the truth is that this program, like all government programs, has already spawned numerous unintended consequences (and none of them positive). Here are just a few:

  • Kelley Blue Book analysts are predicting a bubble in used car prices as a result of the CARS program. This means the cost for a used car is going to be higher, creating a burden on the working poor and lower middle class.
  • Charities are reporting that donations of used cars are down 20% since the start of the CARS program.
  • Already hurt by the economic downturn, used car lots are seeing an additional 20% drop in sales since the beginning of the program – these lots are more often owned by local businesspeople and not large corporations.
  • Some independent auto repair shops – precisely the kind that would service an older car – are reporting up to 25% decreases in their business.
  • Because of the increased demand for many models, car dealers are not discounting beyond the required manufacturer’s rebate. This means that all consumers are paying more for these models.
  • Economists blame the drop in overall July retail sales on the CARS program; arguing that consumers spent on new cars, but cut their spending elsewhere – deepening the recession the program was meant to help stop.
  • The top new model sold so far under the Cash for Clunkers program is an SUV – the Ford Escape – and two large trucks (Ford’s F-150 and Chevy’s Silverado) and a Jeep are among the Top 10 new models sold. (Hardly the pro-green movement for which the government was hoping.)
  • 750,000 working automobiles will be taken out of service and replaced with 750,000 new vehicles. The process of manufacturing each new car (when you account for the acquisition of all material required) is a much more polluting proposition than driving each old car until its natural demise.


It’s clear that Cash for Clunkers will do little, if anything, to stimulate the overall economy; but what about the nation’s car dealers and manufacturers? While dealers are making more per car sold and manufacturers are seeing their inventory backlogs shrink, both of these benefits will likely be short-lived.

The increased demand created by the CARS program cannot be sustained without better economic news. The dip in overall July retail sales signals to us that the end is not as near as we had all hoped. Instead of kick-starting the US Auto Industry, Cash for Clunkers likely pulled ahead many consumers who would have purchased later this year and in 2010. This means many dealers should look for softer than expected new car sales from September through the end of the year.

For the manufacturers, it seems they never learn. Ford announced this week that as a result of the “success” of the program they are ramping up production in the US. While this should be good news for the economy, it likely signals that Ford will be cutting production more than usual this November and December. Rather than enjoying the higher prices brought on by the momentary (and sure to be short-lived) spike in demand, Ford plans to run with the standard Detroit playbook and chase demand by building more cars, trucks and SUVs in the next couple of months. It’s as if Ford is proclaiming “Forecasters be damned, the recession is over.”

…

The leadership lesson in all of this is that the world is always more complex than it seems on the surface. Whether we’re talking about the US Economy or the five people in your workgroup, there is an equilibrium that must be considered before major changes are enacted. Understanding how these changes will affect all stakeholders is an important first step towards reaching your goals; but it is only a first step.

It is equally important to make assumptions about the unintended consequences that will inevitably define the success or failure of any major project, program or transformation. While you’ll be wrong more often than you’re right, just knowing that unforeseen outcomes are expected will make you a better leader – if for no other reason than you’ll be better prepared to manage the unanticipated results.

Young Managers Working in a Small Business: What Can They Do To Get Respect From Below and Above?

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For Young Managers, it’s not Just About Gaining the Respect of Subordinates

One of the most common questions from our readers concerns how they as younger managers can lead older subordinates – all while maintaining respect and sanity. Where we felt we could help, we’ve provided these youthful leaders advice and guidance as recently as last month when we responded to a question posed by a reader named Sourabh from Mumbai, IN. He was curious how he could convince a firm he was interviewing with to hire him despite his age. Prior to that, we’ve explored possibilities for other young leaders in responses dealing with young business owners, leading grizzled older subordinates, and also how a young manager can keep from being run over. Recently, a new reader found our site and posed her own questions after exploring our advice about how a first time manager can gain respect:

Hi, I stumbled across this site as I was searching for some help. … I am not only the manager but the youngest technician at my company. … I work in a small family owned salon where everyone is on top of each other all the time. Here are my concerns that I am hoping you will be able to help me with:

As I mentioned, I am the manager of the salon but unfortunately I don’t get any respect from some of the older employees as well as the employees that are around my age (25). It seems that no matter what I ask them to do or how I say it, as soon as my back is turned I am a “bitch” etc. My requests usually go ignored until the very few times I have yelled at my employees. Which trust me is not many. I have worked for people that were demeaning and constantly yelling and my goal when getting this position was to be assertive but fair and never intimidating. It is getting to the point where if things don’t change I might snap.

I know I am young but I put in more paid and unpaid hours into the salon than any other employee. I work really hard to make us the thriving spa we are becoming and it frustrates me when people cannot reciprocate. I spend the majority of my time (when I am not with my own clients) ordering the supplies that the techs need, coming up with marketing ideas to make their books more solid, building our website, etc. But all I get back is arguments over why they have to do this special for the price I gave them when they want to charge more, or complaints when things they need aren’t ordered (they usually don’t tell me what they need I have to figure it out myself).


I am becoming resentful because I feel like I am constantly doing for them with no respect being given back to me. With the employees that are my age I am just blatantly ignored or told I am being a bitch. But when everyone wants something i.e. to leave early or come in late the next day all the sudden they are calling me “Miss Manager…”

How do I get the respect I not only desire but deserve?

My boss is way too nice to everyone. It really is out of control. I love her and consider her a great friend but at the same time my role as manager has been blurred by her as well. Sometimes I feel like I am not the manager just her personal assistant. She doesn’t want me to reprimand employees when it needs to happen.

How do I establish with her what my role as manager is?

I have asked her this question before with no real answer. I don’t think it’s fair for me to be telling the staff what to do but unable to say anything when things are not getting done. It would be one thing if she dealt with the issues but she is way too nice for that. I get upset because the employees take advantage of her and I don’t like watching that happen without being able to do anything about it.

Please help!!! – MM, USA

Ms. MM, may we call you M? Our apologies on the length of time it took to effort a response, but your questions were so specific and your situation so intriguing that we wanted to ensure we got this one right. (Not that we don’t try to answer all questions correctly, it’s just that you so completely described your issues that we felt compelled to reciprocate just as completely.)

We’ll tackle your issues and questions one at a time, and in the order you presented them…

I work in a small family owned salon where everyone is on top of each other all the time.

It’s always easier to manage large than it is to manage small. We often laugh when we hear about the tremendous “leadership” provided by this Fortune 500 CEO or that one – when you’re armed with a seemingly unlimited budget, surrounded by Yale and Harvard MBAs and staffed with more Administrative Assistants than Congress, you’re going to have very little trouble executing – provided, of course, that you have a brain, a plan and your ego in check.

Contrast this to a young manager trying to get the most from a group of high school graduates and having to do all the heavy lifting herself. It’s clearly easier to manage large and we feel your pain, MM.

It seems that no matter what I ask them to do or how I say it, as soon as my back is turned I am a “bitch” etc. My requests usually go ignored until the very few times I have yelled at my employees.

On the surface, it seems to us that there is no consequence for either insubordination or inaction by the employees. People yell when they are out of options, and if there were consequences at your workplace, you would certainly never have to yell.

Our advice here is two-fold. First, never yell again. When you lose your cool with someone you are telling the world that you are not in control and that you can be controlled by others. In your case, you are ceding your power to your employees and they are likely getting a big laugh at your expense. Second, it’s time to sit down with the owner and create your version of an operations manual. This manual need not be fancy, but it must detail the policies and procedures for the company, and especially the consequences for poor behavior. (Of course, no business rules are worthwhile if they’re not enforced.)

I work really hard to make us the thriving spa we are becoming and it frustrates me when people cannot reciprocate. I spend the majority of my time (when I am not with my own clients) ordering the supplies that the techs need, coming up with marketing ideas to make their books more solid, building our website, etc. But all I get back is arguments…

This piece of advice is probably going to seem odd, but it might be time to empower this team to make many of their own decisions. Where possible, ask the techs to carry some of the weight. For example, if you like to order supplies on Fridays, then create and distribute a simple Supply Order Form to everyone on Wednesday, and ask them to tell you what they need by Thursday night. Those who fail to order the proper quantities and run out could be docked the express shipping charges or the retail price difference required to get their supplies in on time.

For the marketing decisions, encourage all complainers to provide you with what they would like to see next month. Do this in a non-confrontational, sincere manner in front of everyone, and be sure to give serious thought to their ideas. If you choose to implement one of their marketing schemes, be sure to let everyone know before, during and after the promotion that the idea came from so-and-so by thanking them regularly. They will likely take ownership and do everything in their power to make sure it is a success.

But when everyone wants something i.e. to leave early or come in late the next day all the sudden they are calling me “Miss Manager…”

There’s a Latin term that applies to this situation, M: Quid pro quo. Literally, this means “something for something,” and in business it means “scratch my back and I’ll scratch yours.” Each time one of your charges is looking for a special favor, you have a golden opportunity to do some coaching.

If the employee is the loyal, hardworking sort, then you grant their favor (when possible) and you reinforce their good behavior by saying something like “I have no problem letting someone who accomplishes so much go home early now and then.”

When the person requesting the favor is someone who has made your life miserable, you should take time to explain some of your needs before deciding whether or not to grant their request. For example, you might say something like “I appreciate that you would like to arrive late tomorrow, though I think you’d agree that allowing special treatment to someone who rarely cleans up their own work station sends a bad signal to the rest of the team. If you were in my shoes, what would you do?”

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How do I get the respect I not only desire but deserve?

This, M, might be the real question. Certainly, we feel that if you’re able to incorporate the advice we’ve provided so far, you will begin to build respect with your team. Of course, respect is a lot like love: The more you give, the more you get.

Make a pact with yourself to begin each day by respecting your team. This means listening to their ideas (especially the hair-brained ones), and soliciting their opinions about the company’s direction on issues that are important to them (even if you don’t care). As you begin to respect them, they will (eventually) begin to respect you.

While this is a great first step, the behavior of your team could very well be only a symptom of the real problem. From what we can gather from your comments, the underlying problem you face likely has more to do with your relationship with the owner than it does your relationship with your team.

The Real Question is How to Gain the Owner’s Respect

Let’s get some facts about someone who owns their own company on the table: Right or wrong, the owner is the boss. The goal of every company is to make money for the owner. If the owner is crazy and wants you to waste money, for example, you have two choices: Get another job or waste the money. It’s not passive aggressive behavior to give the owner what they want – even if it’s not in their best interest. This is not to say that you shouldn’t attempt to do what’s right; though in the end the owner is the owner and you are just an employee. If the owner wants to allow people to take advantage of her, that is her prerogative (and not your concern). Like the customer, the owner is not always right, but they are always the owner.

M, your issues may appear like they start and end with your subordinates, but in fact, they seem to be caused by the company owner. In our opinion, you are suffering from a lack of respect for your leadership from your boss; and this lack of respect transfers onto your fellow employees. Now, before you march into her office and demand some R-E-S-P-E-C-T, you need to understand that the owner’s behavior is consistent with someone who wants to please everyone. In her effort to please her employees, she is unwittingly minimizing your authority.

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How do I establish with her what my role as manager is?

While the owner certainly thinks you’re qualified, she has likely been continually undercutting you since the day you were promoted – and all of this undermining was occurring without her knowledge. She possibly has no idea what she’s doing, and that’s why we think it might be time to have a very serious, though friendly, meeting with her.

We suggest you seek the guidance of others before acting, though our advice is to sit down with the owner at an offsite location (to minimize distractions) and to ask her a few pointed questions. In a concerned, friendly tone, you may want to ask her:

  • Do you value me as a leader?
  • Do you believe I possess the necessary skills to manage the team?
  • Do you think I am capable of growing the business?
  • What are your expectations of my roles and responsibilities?
  • What are your goals for the business and how do you see my role in that?

Based on her answers to these questions, you should know where you stand. If the meeting is going well, you may want to finish with a simple statement about how much you love working for her, how much you respect her, but how you sometimes believe her leadership style is diminishing your effectiveness as a manager. Explain to her that in order for there to be rules, there must be consequences. Without consequences, or her backing, you will not have the respect of the employees.

Not surprisingly, once the owner begins to respect your leadership, so will the employees. Unfortunately, this reverse is also true (as you discover every day). On the bright side, if your boss chooses to keep the status quo, you can mimic her style and become “too nice” in an effort to win over your charges. Because it’s always easier to change your style from “strict” to “relaxed” than the other way around, you stand a good chance of still becoming a semi-effective leader even without your boss’ respect.