Friday, January 23, 2009

Back at the last job, when I had my own office, it wasn't an uncommon site for many of the staff members there to pop in just to hang out for a few minutes and talk about the Phillies. It also was not uncommon to have them come in to get some advice or simply have a sounding board. I usually enjoyed these conversations the most, because not only is it gratifying that people wanted my opinion, but it was great that people were so concerned with their own development and the development of their team that they wanted to be sure that they got it right.

One such conversation occurred during the beginning of my tenure there with one of the supervisors. We were just talking about leadership and management philosophies when I mentioned something about getting the managers to solicit feedback from their teams about their own performance. Her eyes widened when I said this.

"Really?" she asked. "We are going to have to ask them about our own performance?"

"Yeah," I replied. "We are only as good as our numbers and how our teams perceive us to be. If we aren't being effective, it doesn't matter how good of a job we think we are doing."

"I can already tell you that will be the hardest thing for me to do."

And so it is with most managers. Facing your team, hearing your inadequacies revealed for true, and taking an honest look at your shortcomings as a leader can be a daunting task for two reasons:

  1. They may not want to give you that information
  2. You may not want them to give you that information

They may not want to give you that information. Getting to the information is a trial unto itself. Rarely will a team leader simply be able to ask for an honest critique from their staff and get one. Too often, the team will fear some sort of reprisal, or may not want to hurt their supervisor's feelings, so any information that can be gleaned may be tainted.

There is always the stand-by of the anonymous "Suggestion" box. Personally, I think that these things are a lousy "solution" and a waste of time. Why? Have you ever thought that there may be a reason why there has to be a suggestion box? Its because people don't feel like they can approach the leadership team with their suggestions and comments! Don't you think that this is a larger cultural issue? Don't use this cop-out. You won't be doing yourself any favors.

A good place to start is a 360-degree review. It allows for team members to respond anonymously, but in a directed manner. It also shows that you, the leader, are actively looking for feedback about your performance.

This can backfire, however, if you don't share the results. Once you have collected the reviews, you should share those results with your team (unless, of course, some of the feedback is a little too personal...there is something to be said for not completely baring your soul). Share with them the major findings and your plans to make improvements. Not only will this show them that you are unafraid of their feedback and admitting your shortcomings, but it will also show that your willing to improve. Moreover, they can now be a part of the process; if they see you backsliding on your progress, they are more likely to call you on it. Everyone wins in this situation.

The next step is to continue building on this trust and communication by asking for more feedback, not just about your performance, but about the performance of the team. If you show that you are willing to take and use their suggestions, the two-way communication will grow, and that can only make everyone better at their jobs.

You may not want them to give you that information. The hardest thing a leader can do is look in the mirror and face their own inadequacies. It takes a brave person to actively seek out information reaffirming their insecurities. This is why most managers do not actively seek out this kind of feedback from their staff. The downside is that by insulating themselves with their position and not getting honest feedback, they are actually stunting their own growth. The real issue is that, as they are in a leadership position, they are actively stunting the growth of their team, department, division, etc.

A prime example of this is former President George W. Bush. It has been documented on numerous occasions that he was very insulated from the rest of the world, and thus his opinions and decisions were heavily biased towards a particular agenda. Not that we can lay all of our woes as a nation at his feet (we did elected him...kind of...), but there is obviously a connection between his performance as President and the overall state of the nation. What would the U.S. look like today had he sought out more differing opinions?

This is an extreme example, but it demonstrates the point. Leaders must seek out criticism and critiques of their performance, despite how uncomfortable that may be. Here is the best piece of advice I can give you to help overcome this challenge:

Get over it.

Managers, leaders, cannot be weak-willed. There is no room in true, authentic leadership for those who are weak of heart. We all have challenges that we must overcome, baggage that we carry with us that shapes our attitudes and decisions on a daily basis, but leaders must be able to take the heat. Leaders must be able to put all of that aside and make decisions that are in the best interest of their teams, of their organizations.

So take the dive. Make it a point to actively seek out input about your performance from all directions. You will be a better leader for it.

Friday, January 16, 2009

And the nomimees for the Understatement of the Year, 2009 are...

"This company made massive mistakes."
-George Whalin, in response to Circuit City announcing that it is closing.
Circuit City announced today that it would be closing its doors forever after purging its inventory. Somehow, this just isn't news. Circuit City has been in its death throws for over three years now. They can blame the economy, or Best Buy, or any number of other factors, which I'm sure all played their role. But there is no denying that, like so many other businesses that are shutting down operations, someone on mahogany row was asleep at the wheel.


It was July of 2008, and the company I worked for was expecting to bring on 8 new sales reps. One of my responsibilities, in addition to designing and delivering the sales training, was to get all of the new reps' gear together; this included getting them new laptop computers.



I did a little searching online and after visiting a few different retailer sites, I found a nice deal for a Compaq laptop, something in the area of $600 each, on Circuit City's web site. This looked like the deal we were looking for.



Now, I have some retail experience, and I know that you should always make sure that, if you are going to get the merch at a brick-and-mortar store that you should call and confirm that the merchandise is there first. I can't tell you how many times that a disgruntled customer would have seen a sale item on the web site and then yelled at me when there weren't any of that item left on the last day of the sale. So I call up the Circuit City near the Christiana Mall in Delaware.



ME: Do you guys have 6 of the laptops I see online?
CIRCUIT CITY: "Yep, I've got 8 of them
ME: Great. I'll be paying with a corporate check, will that be OK?
CIRCUIT CITY: Let me check. (puts me on hold for about a minute) Yeah, that should be fine. Just have your driver's license.



This is exactly how the conversation went. Now you, the lay-reader, probably don't see any issues with this transaction. Neither did I. Apparently, there was more to this conversation...there were undercurrents.



Fast forward to about 4:15 pm that same day. I have a corporate check for the sum of close to $3,600 (trying to take advantage of that there is no sales tax in Delaware). I stroll into the store and figure I would take a minute to look at portable DVD players, as we were going to need some of those as well.



There were 4. I should have been suspicious. C'est le vie.



So I walk over the to computer section. And wait. I think I was there for a good 7 minutes before anyone acknowledged my presence, which, in retail terms, is like an eternity. Already I'm starting to question Circuit City's dedication to customer service, being that it wasn't a busy day there.



Around the 7 minute mark, the adolescent proto-human finally comes over and begins our interaction:



SALES REP 1: Can I help you?
ME: Yes, I would like to buy 6 of these laptops.
SALES REP: I can't sell you 6, I can only sell you 1.



Pause for a moment. Did he just really say, I can only sell you one? Certainly, my ears have deceived me.



ME: Did you just say that you can only sell me one?
SR1: Yes. It says so in the flier.
ME: I didn't find this in a flier, its on the web site.
SR1: I can only sell you one.
ME: I need to speak to a manager.



This couldn't be right. I was sure that this child had misunderstood some benign corporate policy, and that the manager would be able to set us on the correct course again.



Another three or four minutes passes by, and I can now see the first sales rep wandering around the front of the store, not getting a manager. As my frustration level starts to grow, another sales rep, this one in his 20s approaches me.



SALES REP 2: can I help you?
ME: Yes, I would like to purchase 6 of these computers for some new sales reps that we have coming in next week, and I have been told that I can only purchase one. Here is the corporate check I have for the purchase.
SR2: Let me check with customer service and see what I can do.



A few more minutes pass by. Who would ever have thought that giving a retailer your money would be such a belabored task?



Now, both Sales Rep 1 and 2 have returned.



SR1: Customer service said that you can purchase 1 today and buy the other 5 through them, and they can ship it too you.
ME: OK, that seems reasonable. When would I get the other ones?
SR2: In 7-10 business days.



OK, hold on a second...7-10 business days? That's nearly two weeks for something that I can see right in front of me! And I have reps starting in exactly 1 week. I once again ask to speak to a manager.



Now, I'm starting to get full hot on the deal. So if I were a parent, and I had twins who were going away to college, what Circuit City is trying to tell me is that they will only supply one computer to one of my children, and the other must suffer.



The store manager rolls up, and I can see by the smug expression on his face that we are about to go to war over this. At this point, I really don't care about the computers, as I'm sure that there are other deals with other companies, but now its about the principle of the matter.



MANAGER: Can I help you?



No, clearly you cannot, but we'll go ahead with this charade anyway.



ME: I would like to purchase 6 of these computers for my incoming sales reps, and I have a corporate check right here for said purchase. I am being told that the only way to get the number that I need is to order them through customer service, but they will not arrive in time for when the reps start. I see that you have 8 right here, can I please purchase 6 of them?

MANAGER: (showing me the flier, the smug expression deepening on his face) Well, as you can see here, sir, the flier clearly states that there is limit one per household for this item.
ME: I didn't read the flier, I found this online.
MANAGER: The web site and the stores are two totally different things.
ME: Clearly.



Yes, you read correctly, and that is an exact quote. Apparently, the Circuit City stores and the Circuit City website are the equivalent of two separate business entities. Now mind you, the stores that are not suffering through this economy in a way that is endangering their business, such as Target and REI, have fully integrated their web site and physical stores so that there is a seamless shopping experience. So, perhaps, this is one of those big mistakes that Mr. Whalin was speaking of.



The conversation continues:

ME: So let me understand you...I want to buy these computers, and you are going to turn away an almost $4,000 sale?
MANAGER: Yes.
ME: What if I bought one now, then put it in my car, then came back in and bought another one? Would that be OK?
MANAGER: Yes. (emphasis added)



Yes. I think that we have finally found the root of Circuit City's problem: they don't want your money! Why would they, as a retailer of discount electronics items, a company born in the very image of capitalism, want your money in exchange for goods and services?




Ultimately, we purchased the computers at a lower price from Staples. And now Circuit City is burning.


There were a few issues here that the leadership team should have addressed years ago:

  1. Empower your staff to make smart business decisions. Sure, there are rules and policies, but there needs to be flexibility when it will be a good move for the store. Who cares if 1 person or 8 people get to spend their money on the same item? The revenue would have been the same.
  2. Train your managers better. This guy was more interested in being right and lording his (perceived) power over me than in making a smart business decision and delivering stellar customer service. I know that being a manager in retail can sometimes create situations that are a blow to your ego...get over it. That's the job.


Ultimately, Circuit City's downfall is their own fault, as they continued with a business model that was virtually xeroxed from Best Buy, and any college freshman in a business program can tell you that is not the best way to run a business. Years ago, Circuit City was known for having some of the most knowledgeable sales people around...now, its some $7.50 an hour teenager who can barely spell anything not in "text speak". Circuit City sold their soul long ago to make a quick buck, and now, its time to pay the piper.



I'm guessing that my story here is not unique. Its this kind of corporate culture that perpetuates in perpetuity when paired with greed and ignorance that will continue to cause the downfall or businesses.



And it always starts, and ends, at the top.

Thursday, January 15, 2009

Where is the horn that was blowing?

I woke up this morning with the radio alarm blaring KYW 1060, as it does every morning, and it just so happened that by the time I was fully awake enough to shut the alarm off (after the first 4 times it went off and I hit the snooze button on autopilot) that the business report was airing. The announcer must not even have to change his script from day to day, because it always seems like the same news: stock market down, unemployment up, bailout package, etc.


Today, a group of economists called the Group of 30 (very dash-cunning of them, those economists) strongly suggested tighter regulation for the banking and credit sector, citing the past abuses of the system that lead to the downfall of the finance giants and the recent Madoff-lead Ponzi scam. On top of that, Obama is calling for the rest of the $350 billion bailout be released, and has promised greater transparency for how it is being spent. (Personally, I am a little perturbed that no one knows what happened to the first $350 billion. Shouldn't someone be looking for that?)


Now, I have my opinions about the bailout, but I'll leave that for another discussion, and I'm not going to blast the familiar trumpet call of, "Where's my bailout?" I tend to interest myself with the root causes of the issues that we face, not just the symptoms. The market crash, the closure of major investment houses, the housing crisis, they are all symptoms. They aren't the actual problem.


So here is the real issue at hand, the one that has been touched upon, but hasn't really been explored: where have all of the real leaders gone?

I don't care how corrupt, greedy, inept, or just plain lazy the rank-and-file employees may be at any organization (note: I am not saying this is the case at any of the affected organizations); the responsibility always, always falls at the feet of the person in charge. Tasks and projects can be delegated, responsibility cannot.


As pointed out in the book Good to Great, great leaders have ambition, but their ambition for their company always comes before their personal ambition. And that ambition for the company always means taking a long-term view and making decisions that will not put the company at the kind of risk that costs jobs or requires Chapter 11.


This is not to say that excellent leaders don't take risk or make mistakes. Great leaders will always take chances and will occasionally make a mistake, but they all realize something: risks should be calculated, and there is an understanding that the higher up on the corporate ladder that these risks are taken, the greater the consequences.


The big issue here is the constant battle cry of "greater regulation". This is only one way of helping prevent a similar meltdown in the future and to possibly stem the flow of the current economic recession. But no matter how hard they try, no matter how carefully they word the legislation, no matter how much power the regulatory body may have, neither Congress or anyone else in government can regulate a manager's ability to lead. And that is what is really missing here.


Take a look at each and every example of businesses and industries that are directly contributing to our economic woes: Lehman Brothers, the mortgage houses, the banks, all of them that are suffering now have all suffered a severe lack of competent, responsible leadership. The ones that are weathering the storm, acquiring their competitors and doing relatively well all have a steady hand at the helm, someone who thinks about the long-term consequences for their companies.


So, to me, the answer is not just more regulation. The real answer is for people to stop settling for the incompetent leaders who have pushed this economy to the brink of disaster. Now, we are not all in a position to have much effect on the presidents and CEOs, but some of us are in a position to make hiring decisions, and all of us are in control of the kind of leader that we will be. This is what I suggest:
  • Hire up. Each person you hire should have the potential to leave you in their dust. Don't be afraid to hire someone better than you. Holding that fear will only perpetuate the cycle.
  • Be honest with thyself. Take a good look at the mirror, and be your own harshest critic. Take the time to complete an inventory of your managerial style and your own actions. Then assume that you aren't doing as good a job, and focus on being better.
  • Screw intentions. Intentions are worthless. Actions are what count.
  • Constantly grow. Pick specific things that you want to improve on as a leader, and then work on those things. Read as much as you can, and get as much exposure to other leaders as possible. This kind of "classical" approach will lead you to be a very well-rounded leader who is capable of handling a variety of situations.
  • Seek feedback. This can be the hardest thing for a leader to do, but it is essential that you do it. It doesn't matter what you think you are doing, it matters what your team perceives.
  • Communicate in all directions. Mentoring is not just a top-down prospect. You can covertly mentor up by offering feedback to your supervisors as well. When is the last time that your supervisor, or his/her supervisor heard, "You are doing a great job"?
"All that is necessary for evil to triumph is for good people to do nothing." Take this to heart. Its is when we, all of us, choose to allow leaders to act in unscrupulous ways, that we choose to ignore when a decision can potentially bankrupt a company, that we choose to not develop our teams to their fullest potential, that the cycle perpetuates. This is not something that we can rely on the government to fix. They play their part, but ultimately, the responsibility, in whatever capacity it may be, falls on us.

Wednesday, January 7, 2009

Once more into the breach

I once again find myself in an unfortunately familiar position, that on the receiving end of a downsizing.

This time last year, I was still sitting at home, attempting to pry an opening into the shrinking workforce after being "right sized" by my previous employer. ("Right-sized": who in God's name ever came up with this awful, Orwellian term? Call it what it is... you are firing people.) I had about 3 months notice to that event that finally came to a head in September of 2007, and arrogantly thought that I would land another, better job in a matter of weeks.

As it would happen, life has a tendency to humble arrogance. It took six months (9, if you include the search I started before "D-Day") to finally land another job, and the offer was made the week my last unemployment check was deposited.


This time it came as a bit of a surprise, as they have been continuing to give me large projects up until the week before Christmas. However, today at 3:30, I was informed that the direction of the company was not conducive to employing a full time training manager and that my services would no longer be required. While my previous place of employment was the work-environment equivalent of the hole under an outhouse, I actually really liked this new job. The work was interesting and most days I came home tired and happy. It will be a shame when I clean out my office tomorrow morning.

(Before I go on, I should also say that every manager there offered me their recommendation, so while being laid off still sucks, its nice to know that they respected my work enough to offer that.)

The last time that I was part of the tired, huddled masses, I slowly crept into a depression that really took hold sometime right before Thanksgiving. Partially, this was due to my own inactivity: I had reached a point that I just didn't know what to do any more. It seemed like no one was giving me the time of day, and the first (and only) interview I had for a job that I was over qualified for didn't pan out. Needless to say, my self-worth was taking a major blow, not to mention my ego.

This time around, I have made myself some promises:
  • Stay active. Exercise can help elevate bad moods, so I am going to make every attempt to stay active and exercise at least 3 times a week. This should be a bit easier, as I had aleady made that one of my New Year's resolutions. And I'm sure that the dog will love it.
  • Write. One thing that I did wrong last time was that I didn't speak to anyone about what was going on, as I have a habit of doing. Keeping negative emotions like that all bottled up cannot possibly be healthy, so this time, I am going to keep track of what's going on right here in the blog.
  • Work on the job search every day. I tend to star projects in earnest, but then as time goes on, my ADD kicks in to overdrive and, though I have the best of intentions, I cease to be as committed to the process. I know that I need to put time aside each morning to take on the job search in earnest.
  • Stay open to possibilities. I think, for my own sake, I need to look at all of the possibilities open to me. Now is the time that I should look at some of the "out of the box" options, whatever they may be. I'm sure that I will have more on that later.
So the overall plan here is to keep a running update on the whole process. I know that there are literally millions of other people who are in the same predicament as me, at the mercies of a crap economy and failed economic policies, as well as a plethora of other contributing factors, but even if being a single voice in the storm can help a little...well, its worth a shot.