Tag Archives: Leadership Situations

What Every Business Can Learn from the Social Media Efforts of @Delta

Posted on by
8

 

It was about 6:30 last evening when I found myself at the Delta Sky Club in Tampa, Florida. I was booked on Delta’s 7:45 flight to Atlanta (where I am speaking to a group of Ford dealership managers about Internet processes this morning). I had a yearning for a cup of coffee, but I really didn’t think indulging in a caffeinated beverage that late in the day made sense. (Between my upcoming flight and the strange bed I was soon to be sleeping in, it would be hard enough for me to get any rest. As it ended up, I got a solid six hours.)

I grabbed a clean cup at the self-serve coffee station and placed it under the decaf jug’s spout. Pushing down on the lever I discovered they were out of decaf, so I moseyed to the bar to let the Delta bartender know this fact.

“Oh… thank you,” she replied.

I got a glass of water to hold me while she made the decaf and headed back to my seat in the lounge.

Twenty Minutes is Plenty of Time to Make a Pot, Right?

At about ten minutes before seven, I headed back to the coffee station only to discover that the decaf jug was missing. Clearly, the bartender just forgot to return it after she made a fresh pot, I surmised, so I walked over to the bar to ask her if the decaf was ready.

“Oh… it’s too late to make any decaf,” she replied.

I looked at her and just blinked my eyes for a couple of seconds to get my bearings.

“Um, isn’t nighttime when people usually drink decaf?” I asked.

“Well, I was told it’s too late to make any more decaf tonight,” she replied smiling.

Would You Like a Double Gin & Tonic instead?

I figured that a pot of decaf must cost Delta all of two dollars, so I wondered why they were being so cheap. Had I been ordering double Gin & Tonics all night they wouldn’t have batted an eye – even though my drain on their profits would have been much greater.

Since I really wanted that coffee – to the point that I could actually taste it on my way back to my seat – I decided there was nothing I could do but sit down, shut up and be a good Delta customer. In other words, I was fuming. Not because I didn’t get my precious coffee, but because of the arbitrary nature of how the Delta team at the Tampa Sky Club chose to create rules. They didn’t want to have to clean the pots after a certain hour (I surmised), so they invented a rule that you couldn’t make decaf after six.

They reminded me of a bunch of teenagers working at any fast food establishment fifteen minutes before closing: “Oh shit, here comes another customer. Don’t they know we close in like fifteen minutes?”

Vent or Die

I could keep my now rage about being denied a cup of decaf inside me or I could let it out. I chose to let it out. Of course, rather than throw chairs around the Sky Club or even demanding to speak to a supervisor, I decided to just Tweet about this experience to my 1,200+ alleged followers. (Because it was a Friday night, I was pretty sure that no more than 1 or 2 would even read the damn thing. I just needed to vent.)

I followed that message with one more Tweet a minute later to complete my thoughts about the whole affair:

Feeling somewhat content having gotten this off my chest; I sent a couple of emails, packed up my belongings and headed for the departure gate.

A few minutes after I settled into my seat and cracked open an unsatisfying bottle of water, a Delta agent came to my row and asked for me. Instinctively, I just knew I was going to hear some regurgitation of why they don’t make decaf after 6:00 PM and how sorry she was but that “the policy was important to ensure the blah, blah, blah…”

“Mr. Stauning?” she asked.

“Yes?” I replied.

She followed with “We were wrong not to make a fresh pot of decaf for you in the Sky Club this evening. Can you tell me who it was that told you this?”

I was floored. She admitted they were wrong and actually wanted to know which of their employees needed some additional training on customer service.

After I told her my experience and the brief conversations with the bartender, she thanked me for being a loyal Delta customer and handed me a $12 meal voucher for Atlanta. (Delta knows, you see, that I am flying out of Atlanta today after my meetings and so they correctly assumed that I might have to grab a bite in the airport.)

For the cost of a few minutes’ time and $12, Delta was able to completely resolve a minor situation with a long-time customer (and often vocal critic). Moreover, the half-dozen or so people who heard the exchange on the plane were undoubtedly impressed.

#TheLittleThingsThatMatter

As I hashtagged in both of my Tweets, it’s the little things that matter. Not making decaf for your frequent fliers is a little thing; but it genuinely pisses customers off. Telling your customers you were wrong and offering to buy them a $12 lunch the next day are little things; but these are what customers remember and appreciate.

The lessons that all businesses – whether they’re a B2C or B2B establishment – can learn from how @Delta handled this “little thing” are these:

  1. Be diligent and genuine about your social media pursuits. If you’re going to be on Twitter or Facebook, don’t do it for branding or marketing purposes; and don’t just become another spammer. Be social. React genuinely. Solve problems. Or shut the hell up.
  2. Be quick and don’t escalate the little things – SOLVE THEM. I don’t know who made the decision to greet me on my plane and present me with a meal voucher, but this decision did not have to be reviewed by a committee. Imagine if the team that monitors Delta’s Twitter account had simply waited until the next day and responded to my Tweet with “Dear Mr. Stauning: blah, blah, blah…” That would have been infuriating (I know, because another minor issue with a company last week was handled just that way. They would have been better off ignoring my Tweet than to send me down the customer service path of hell I am currently on.) Delta has empowered someone to make quick decisions in the field to solve minor customer issues. This seemingly tiny act can do more to defuse a bad situation than all the “we’re sorry you feel this way” emails and calls from insincere customer service drones.
  3. In all relationships, it’s truly the little things that matter. This is especially true in the realm of customer relationships. The customer is not always right… but, they are always the customer, and when it’s your fault that they feel bad you need to tell them it’s your fault, and then you need to fix the problem.

But The Steakhouse Did So Much More…

Some of you may be familiar with a similar, albeit more extravagant, response from an overpriced steakhouse to a loyal customer who also Tweeted his desires from the Tampa airport. The differences in this case are that Delta (in my opinion) wasn’t looking for publicity, just hoping to satisfy their customer. Additionally, Delta operates on a much smaller margin and deals with many more customer service issues than a chain of restaurants, so sending a guy in tuxedo to deliver me a porterhouse dinner would not have been fiscally responsible. Finally, the guy who Tweeted about steak was just a whiny traveler who wanted something he couldn’t have.

(Well, I guess the two stories do have a little in common.)

How TrueCar.com Caught Car Dealers Off Guard

Posted on by
8

 

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.

 

Thank You Delta: An Open Thank You Letter to Delta Airlines from a Regular, Long-Time Delta Customer

Posted on by
2
Thank you Delta Airlines for all that you do for today’s airline passenger. Whether our trips are for business or just for vacation, we owe you a hearty “thank you” for making us feel so special.
.
Specifically:
.
Thank you to the Delta ticket counter clerks who immediately act annoyed when they have to answer another dumb customer question. (Don’t these people read? Can’t they see this is not the line for dumb questions? Why don’t they just use the kiosk instead of bothering me?) It’s because of you that Grandma starts every trip with an upset stomach and explosive diarrhea.
.
Thank you to the Delta gate agents who never seem to be able to be where they are actually needed. It’s because of you that all of the passengers have more time to get to know each other’s unique smells while we wait at the gate for you to move the jet bridge a whopping ten feet. (I think I’ve developed a bladder infection from sitting for long periods when I have to pee.)
.
Thank you to the Delta Airlines logistics team who ensure that if your plane arrives ten minutes early, they’ll keep your gate blocked for another twenty minutes just to ensure they are able to maintain the proper balance in the universe. It’s because of you that we are all learning to count better. (Hmm, I count twenty empty Delta gates, why don’t they just park the plane in one of those?)
.
Thank you to the Delta Airlines baggage handlers who ensure that no matter how long your layover at a Delta hub, you and your bag will not both make your connecting flight. It’s because of you that I have learned to love wearing the same underwear two days in a row. (The trick, you see, is to turn them inside out on the second day.)
.
Thank you to the Delta Sky Club attendants, clerks and bartenders for shutting your club 10 minutes early. Because of this, I realize that Delta employees are more like Wendy’s employees than someone I should trust with my life.
.
Thank you to the Delta Airlines pilots who are allegedly qualified to fly a jet plane, but cannot seem to properly operate a microphone or enunciate clearly enough for anyone on the plane to hear what they are saying. It is because of you that “uhhhh crackle, scratch, crackle, crackle, scratch, crackle, uhhhhh, scratch, crackle, scratch” makes me wonder whether we are crashing or just passing over the Grand Canyon.
.
Thank you to the Delta Airlines flight attendants who, like a Macy’s cosmetics department sales clerk, have a unique and misplaced sense of superiority over everyone in coach. You are nothing more than glorified barmaids, and if you were really any good at it, you’d be slinging drinks at the Applebee’s in Omaha – and making more money. It’s because of you that our young people unfortunately look up to women who are too dumb to operate a circa-1995 video player that plays the onboard safety message.
.
Thank you to the Delta Airlines baggage office clerks who make certain that the customer knows via your exaggerated hand gestures and head bob that “it’s not my fault that your bags are lost.” In fact, you do such a wonderful job of pointing fingers that I often leave your counter wondering what I could have done better to ensure my bags were on my flight before takeoff. (Shame on me for being such a passive flyer – I should have taken a more active role in moving my checked baggage from flight-to-flight.) It’s because of you that so many Americans are self-medicating.
.
Thank you to the Delta Airlines procurement officers who work so very hard to get the absolute lowest bid on everything Delta offers today’s traveler. I want to give a very special thank you to the person on this team who buys the Made in China roll-on antiperspirant for the toiletries bags you distribute to those of us who were dumb enough to trust Delta with our bags. It’s because of you that I now know that “antiperspirant” actually means “hellfire rash-inducing highly carcinogenic lotion-like near-liquid substance” in Chinese.
.
Thank you to the Delta Airlines marketing department. I assume it was your team who decided to allow the Google/GoGo/Delta Free WiFi program for the Holidays this year. Nothing sparks Holiday Cheer more than 159 people trying to login to a WiFi service that is barely capable of handling nine. What a great and productive experience you have given me (a paying GoGo customer), and what a terrific first impression you are making on those GoGo novices on the plane who also cannot access anything while in the air. It’s because of you that so many of us have cut back our travel plans for next year.
.
And a special thank you to anyone who answers a phone at Delta Airlines. I know this is an incredibly short list, but you do a great job of both blaming me and calling me a liar simultaneously… sorry to have troubled you at 3:00 AM when I am unable to sleep because I am wondering where my bag that you made me pay $25 to check is… go back to playing solitaire. It’s because of you that Americans are now demanding companies outsource more of their call centers to Bangladesh.
.
Finally, to the entire Delta family who seems to think that I am, as the regular customer, there only for them and not the other way around, I thank you for your patience with me – I am learning and will work to become a better customer. One who gladly forks over thousands of dollars every month to you while getting nothing but grief in return.

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

Posted on by
2

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?”

quote

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.

quote

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.

Leaders Don’t Get Too Caught Up In The Details

Posted on by
2

 

Low Hanging Fruit and the Cost of Perfection

Imagine a small airplane flying low over a crowd at a baseball game. The door of the plane opens and a smiling man appears with a large sack. He turns the sack over just as the plane flies over the bleachers and millions of dollars in various denominations begin to flutter down to the amazed crowd below. The plane makes a dozen more passes, and each time the man empties sacks of bills onto the crowd.

Now imagine you are in this crowd and you see hundreds, fifties, twenties, tens, fives and ones all floating toward your waiting hands. As the bills come within reach, you feel compelled to collect only the fives and ones because you know they’ll be easy to spend and they’ll work in most vending machines. Additionally, you decide to straighten each bill as it reaches your hand and you arrange all bills in sequential order by serial number and denomination as you collect them.

Of course, these decisions hinder your ability to gather the maximum amount of money, but you really want to make sure these dollars are perfectly displayed in your wallet once the money shower subsides.


Crazy? Probably, but managers in businesses of all shapes and sizes make similar decisions every day. While rationale people would grab every bill just as fast as possible, managers locked into some strange quest for flawlessness worry too much about perfection and not enough about the goal – costing their companies millions in actual losses and even more in lost productivity.

 

Leaders Grab the Low Hanging Fruit

 

Often in sales we talk about Low Hanging Fruit (LHF). This overused phrase refers to the sales that are so easy to make you just have to walk up to the great sales tree, reach up and pick the customer of your choice. This phrase is so hackneyed and misunderstood that it nearly cracked the Top Ten in our list of the 25 Most Annoying Business Phrases of All Time.

 

The concept of LHF in sales came about because inexperienced salespeople would often pass up the sure thing only to spend an inordinate amount of time trying to close a sale that would eventually yield them less commission. In leadership, LHF refers to the opportunities that take little effort. These opportunities are often not glamorous, causing unfocused managers to chase shinier objects (leaving the LHF to rot on the vine).

 

Leaders, of course, maintain the goal in the forefront of their minds. This keeps them focused and allows them the wisdom to grab the Low Hanging Fruit; and to avoid the traps of shiny objects and the ill-advised pursuit of perfection. Leaders do what is best for the company and not just what feels best at the time or makes them appear to be in control.

 

Perfection is a Joke, and it Costs Too Much

 

I once worked with someone who was put in charge of overseeing the migration of the company’s website from provider X to provider Z. While X had done a fine job with the site, the company just felt it was time to change. No biggie, this happens. Unfortunately, my colleague got so caught up in how every page of the new website looked (she argued for weeks about shades of blue that were indistinguishable to the naked eye), that the designers at provider Z left out major functionality that would have converted twice as many visitors. Additionally, the new website performed poorly with search engines like Google because my colleague was too busy picking just the right images to notice that the content was incorrect.

 

A leader who was focused on the goal would have known that search visibility and conversion were the primary objectives of the website, and that there were no secondary objectives. This leader would have looked at the opportunity to build the site correctly as Low Hanging Fruit and would never have been caught up in unimportant details like Cornflower blue v. Dodger blue.

 

The Devil is in the Details

 

In today’s business world there is no room for perfection. Those lucky enough to still have a job are likely carrying the weight of several laid-off coworkers. True leaders understand this and do everything they can to maximize the ROI of their activities and decisions. They do not get caught up in colors or sequential bill stacking when the future of the company is at stake. As bad as it may sound to the dilettante managers, leaders understand that good enough is sometimes good enough.

 

Leadership Lessons from the NBA – When Bold Moves are Required, Leaders Don’t Care About Popularity

Posted on by
Reply

Leadership Lessons from the NBA – The Surprisingly Aware Richard Jefferson

Weeks after being acquired by the San Antonio Spurs, star NBA forward Richard Jefferson was scheduled to marry his redundantly named fiancé, Kesha Ni’Cole Nichols, last Saturday. As you’ve likely heard, Jefferson, late of the New Jersey Nets, got cold feet and called the wedding off just hours before he was scheduled to become Mr. Ni’Cole Nichols.




While most in the blogosphere have lined up to crucify Jefferson for his last minute email to Nichols calling off the nuptials, the editors of AskTheManager.com believe he showed great leadership in recognizing a bad decision and rectifying it before it was too late. (Of course, there are reports he spent more than $2 million on the wedding that never happened, so we’re not entirely sure he couldn’t have made the decision a few weeks earlier.)

Leaders Make Decisive Moves

While Jefferson spent more than $2 million on the ceremony, he likely saved himself millions more by avoiding the inevitable divorce from KNN. Many have called him a coward, though we call him bold.

A coward, you see, wouldn’t want to face his fiancé, her family, his family, their friends and the rest of the world with the embarrassing news that he made a bad decision in asking her to marry him. A coward, you see, would live with his bad decision and compound it with more and more bad decisions for the rest of his life. Leaders are bold enough and comfortable enough with their own abilities to say “I screwed up, and this is how I’m going to fix it.”

Leaders Do What’s Right

The popular move for Jefferson would have been to go through with the wedding and make the best of a bad marriage. Certainly millions of others before him have done just that. Jefferson, for whatever reason, stepped up and did what was right – that’s what leaders do. Leaders care about popularity only when it doesn’t get in the way of what is right, and marrying someone you just don’t love isn’t right.

Some People Should Be Allowed To Quit – Coughlin’s Law Can Always Take Over

Posted on by
Reply

Coughlin’s Law: Bury the Dead

People leave, let’s get over it. Gone are the days when a man arrives for work in the factory two days after his high school graduation and leaves forty years later with a gold watch. The American career path hasn’t included this scenario since before Lyndon Johnson took office. Over the last 40 years, American workers and American businesses have had an arrangement: Every man for himself.

For some reason, the most senior leaders of my company just don’t understand this.

We recently had an executive announce he was moving on; he no longer felt like there was a “fit” for him in our organization. He held no ill will for the company, but recent changes just made it difficult for him to continue in his capacity. In reality, he was doing what was best for him and the company. Besides, his employment was always, by law, considered to be “at-will.”

Our senior leadership was immediately filled with a strange hatred for this “traitor.” Like Bo Schembechler uttering that “a Michigan Man will coach Michigan” when then Michigan basketball coach Bill Frieder was talking to Arizona State in 1989, and Bo swiftly fired him (assistant coach Steve Fisher took over and won the national championship that season), our senior leadership began to treat this previously invaluable executive as some sort of leper. He became persona non grata overnight.

There ain’t no good guys, there ain’t no bad guys. There’s only you and me and we just disagree. – Dave Mason

The Company Owes You Nothing

It’s important to note that my company’s leadership has eliminated more than one thousand jobs over the last fifteen months amid the current recession. This doesn’t make them villains; they did this in the best interest of the shareholders. This, you see, is their duty.


The one thousand plus newly unemployed soles may not like it, but the company owed them nothing. There was no contract between the parties that guaranteed a lifetime of employment. There couldn’t be; not if we want businesses to succeed and create jobs and pay taxes. (It’s important to note that nearly every one of those who were laid off received severance packages better than that which they were due. The company did right by these employees.)

You Owe the Company Nothing

Just as your at-will employment can be terminated by the company for no cause, you have the right to walk when you want. You owe them nothing. The minute you begin to think differently, it’s time for you to consider a career change.

While on the payroll – and especially when you’re in a leadership position – you owe your company your best efforts, which include leading with integrity. If you’re a regular reader of this blog, you know that your integrity is critical to delivering great leadership. A duplicitous heart lacks integrity, and you have to be dedicated to your company’s well-being if you expect to be taken seriously as a leader.

That said, the minute you’re ready to go, you need to go, and you need not look back. It’s just sad that the alleged mature leaders in your company will likely treat you as someone taking part in some strange industrial espionage ritual.

Why Can’t Life Imitate Art?

Bryan Brown’s Doug Coughlin said it best in 1988’s Cocktail: “Coughlin’s Law: Bury the dead. They stink up the joint.” Companies and leaders need to figure this out and get over the natural turnover that occurs in American business today. People leave, it doesn’t make them the enemy. It does, however, make you look like an ass when you overreact to it.

Why We Don’t Have Leaders in the Public Sector

Posted on by
Reply

Leadership Lessons from the Public Sector

There are reasons some people are lifelong public servants and others work in the real world. Whether it’s the military, public education, a state legislature or a municipal government: a job void of profit responsibility is generally void of any true accountability. Without accountability, leadership can become unnecessary and the skill set (if it ever existed) will atrophy.

As we wrote in a recent post about school administrators, the people in these roles “are generally not great leaders… They’ve never had to live by a P&L or make real personnel decisions. They spend our tax dollars like Monopoly money, and they do all of this with no real accountability.”

Examples of this abound and we never have to look very far to reinforce this belief. Occasionally, some move by one of these leadership amateurs so shocks our conscience that we feel compelled to comment… much like a recent decision by management at an Atlanta-area county office that actually made us cringe.

Layoffs Happen

Last Friday in DeKalb County (GA), workers in the planning and development office were told there were significant layoffs coming and that they would have to wait until Monday to learn their fate.




Nothing strange here, right? Layoffs are happening all over America in the private sector, so it seems natural that these would eventually reach those working in a cash-strapped county office. The differences, however, between this layoff and those that are occurring in the real world are the communication skills and compassion shown by DeKalb County’s managers.

The 100+ employees in this office were told to return any county equipment and pack up their belongings and leave… without being notified if they were included in the layoff or not. You see, their managers wanted everyone out first, and then they would tell the lucky few (19 to be exact) to return with their things and resume their duties.

WTF?

(Excuse the texting in the middle of a post, but WTF? does not mean Wednesday, Thursday, Friday; and its use is appropriate in this case.)

While leaders in the private sector are often (rightfully) accused of being less compassionate than their public sector counterparts, employee relations as practiced by DeKalb County went the way of the three-martini lunch in the real world. Thankfully, the fear of lawsuits or bad public relations helps to keep this behavior out of the for-profit companies. When it happens in the public sector, we have little recourse but to strongly denounce it.

Okay, We Denounced It

We didn’t raise this example to simply call attention to the lousy leadership provided by government entities in the Atlanta area. Rather, we believed this instance was simply another glaring illustration of how the lack of a profit motive coupled with a promotional system based on tenure (instead of ability or merit) leads to poor leadership, morale and employee effectiveness. (If you’ve ever had to get your driver license renewed, you know exactly what we mean.)

Leaders need accountability, goals and responsibilities – complete with consequences – in order to grow and deliver value to their organizations. Where we fail to provide these to our middle managers, you can argue we end up operating like a government agency.

What About the 100 People Carrying Boxes Filled with Desk Chachki?

DeKalb County CEO Burrell Ellis stepped in and said he was dissatisfied with how the process was being managed and ordered a delay of the layoffs. (We’re not sure why a county needs a CEO, but we’re glad someone with authority in the county has a little common sense.) The delay, however, will be a short one. Plans are in the works to save more jobs, but DeKalb’s planning and development office will deservedly lose more than half its current workforce… they’ll just do it with a little more dignity.