The Business Sensei

The Efficient Light Bulb

As published in The Imaging Executive

Once upon a time, there was a light bulb. This light bulb was quite a remarkable light bulb: it was praised far and wide for its incredible efficiency. This light bulb gave off no waste heat. This light bulb did not contribute to global warming. It had no carbon footprint.  It did not rely on fossil fuels. Truly, it was an amazing light bulb and visitors came every day to see this remarkable light bulb.

One day, though, a traveler coming to see the light bulb in action was delayed by an unfortunate flood that closed several roads. He did not arrive until well after night had fallen. Much to his surprise, he found the light bulb sitting in a pitch dark room.

“Why aren’t you giving light?” asked the traveler.

“Give light!” replied the light bulb in shocked tones. “You must be joking. If I did that, I would use fossil fuels. I would have a carbon footprint. I would give off waste heat. I would no longer be efficient.”

“But isn’t the purpose of a light bulb to give light?” asked the traveler.

“I’ve always been told to be efficient,” replied the light bulb with a shrug. If you have never seen a light bulb shrug, it is truly a wonder to behold. The traveler would have been amazed, except, of course, that the room was too dark for him to see the miraculous event.

Once upon a time, there was a software company named “Soak, Inc.” Soak’s product relied upon a very complex database server. One day, the VP of Engineering stormed into the office and declared, “The server is too slow. We need to speed it up.”

From that day forth, every effort was focused on improving the speed of the server. Other issues were deemed insignificant beside the one, critical, goal of performance. Engineers who dared to raise other issues were publically humiliated for wasting the company’s time. Bugs that did not relate to performance issues were deemed “optional.” People who spent time reviewing the optional bugs and trying to fix them were warned that their insubordination would cost them their jobs if it did not cease immediately.

Eventually, Soak developed an amazingly efficient server. It was fast. It was robust. It was ready to demonstrate to potential clients.

The demo started out remarkably well. The server did not crash, causing some to believe that this couldn’t actually be a demonstration of a software product. Indeed, the server performed flawlessly. All would have gone well indeed for Soak had not someone noticed that the data being delivered by the server didn’t make sense. Yes, what the server had gained in performance it had lost in accuracy. In other words, it was incredibly good at very rapidly delivering useless or incorrect information.

When the engineers were questioned about this unfortunate oversight, they shrugged and replied, “We were told to be efficient.”

While it is not nearly as amazing to see an engineer shrug as it is to see a light bulb shrug, the effects are much the same.

Once upon a time, there was a large company called “Red.” Red Inc. had a team of salesmen who were, it seems, not producing the necessary volume of sales.  While this may have gone a long way toward explaining the name of the company, it was not exactly a viable long-term strategy.

One day, the VP of Sales decided that the problem was clearly that the salesmen were not calling enough potential clients. They were wasting their time. They needed to be more efficient with their calls.

Much effort was spent focusing on the calling habits of the salesmen. They were given scripts. They were forced to practice making calls with various managers listening in and rating them on their performance on these practice calls. Those salesmen who demonstrated too great, or at least too obvious, a reluctance to make calls were dismissed. Those who questioned whether this was the right way to approach the problem either learned quickly to shut up or were also dismissed.

The sales team became very efficient at making calls. Sales did not increase. The remaining salesmen shrugged.

It turns out that even the best salesmen are reluctant to make calls. The problem was not with making the calls. The problem was with projecting the necessary confidence and optimism to attract and hold the interest of the client. Clients, it seems, are not all that likely to buy from salesmen who do not appear enthusiastic and confident in what they are selling. It also helps to know how to close the deal.

In each of these situations, a goal was set, a metric for success was defined, and that metric became the sole determinant of progress. Goals are extremely powerful tools: the best thing about them is that you accomplish them. Unfortunately, sometimes the worst thing about goals is that you accomplish them. In each of these examples, they accomplished their goals. A dead light bulb is extremely efficient, but not useful. Similar observations can be made about the server and the sales team.

Before leaping into setting a goal, especially a goal to solve a problem, it helps to understand the actual problem and to understand what the actual symptoms are. At Red, they assumed that an unwillingness or inability to make calls was the cause of the low sales and set their goals accordingly. We’ll never know how many top salesmen they dismissed because they didn’t realize that even the best salesmen suffer from call reluctance. Rather than create useful goals, they fixated on a symptom. That did not, however, actually change anything.

At both Soak and Red, the respective VPs stated that they were trying to solve the problems their companies were facing as rapidly and effectively as possible. They were setting goals. They were Taking Action! Taking action is certainly helpful, but it is even more helpful to be taking the correct action. Since it’s not always possible to determine just what the correct action is, it becomes even more critical to listen to the feedback and questions from the people who are charged with actually executing the action. The engineers and the salesmen knew that something was wrong, but no one was willing to listen to them. Remember, a key aspect of successful goal setting is understanding the feedback you’re getting.

I realize that many of you reading this are probably chuckling to yourselves and thinking that this scenario could never happen at your companies. The folks at Soak and Red said the same before, during, and even after it happened to them. The light bulb had no comment.

Setting a goal, for example, to be more efficient , seems like it makes sense and certainly feels good. However, it pays to determine if that goal is actually going to get you what you want. Otherwise, you may just end up with a dead light bulb.

Balance the Individual and the Team for Top Performance

As published in Corp! Magazine

In Monty Python’s classic comedy, “The Life of Brian,” there is a scene fairly early in the movie when the people of Jerusalem have decided that Brian is the Messiah and are standing waiting on the street outside his window. Brian’s mother screams out at the crowd, “You are all individuals.”

The crowd replies: “We are all individuals.”

A pause, and then a lone voice yells, “I’m not.”

This is typical Monty Python absurdist humor, but it makes a very serious point. What is standing outside Brian’s window is not a group of individuals, it’s a mob. A mob is a group in which individuality is lost in the urge to conform to the group. As the movie progresses, we see the mob do various ludicrous things as they follow their unwilling prophet. Brian’s followers are, of course, convinced that they are acting according to his instructions and executing his desires, no matter how much Brian screams to the contrary. This being a Python film, the sequence of events is absolutely hilarious.

In a business, not so much. Unfortunately, the tendency for a group to lose individuality in the service of a charismatic leader or a particularly enticing corporate vision is not restricted to comedy. At one large software company, the dynamic became quite extreme: employees were expected to arrive at a certain time, eat lunch at a certain time, visit a certain set of restaurants, leave at a certain time, and so forth. No deviation was tolerated. The mantra was, “We’re a team. We do everything alike!”

Sound fanciful? I wish it were.

The problem is that a team that loses its individuality is not a team, it’s a mob or a rabble. It can be a very disciplined mob or rabble, sort of like the Storm Troopers in “Star Wars,” but it’s still a mob. Like the Storm Troopers, it’s very good at dealing with routine situations, but isn’t very good at dealing with the unexpected: new tactics from the rebels or, if you prefer, new competitors or existing competitors adopting new strategies. The other problem is that when a group focuses on homogeneity, it loses its ability for the strengths of some to compensate for the weaknesses of others: the Storm Troopers, for example, cannot successfully shoot the broad side of a barn.

At a different high-tech company, the only engineers hired matched a very precise and very limited profile. Not only did you have to solve a certain set of puzzles, you had to solve them in just the right way. Alternate solutions were not tolerated. This created a team that was very good at creating intricate, convoluted algorithms, and a user interface that was equally intricate and convoluted.

None of these situations are as extreme as that portrayed in “The Life of Brian,” but then again, they aren’t as funny either.

Later in the movie, we see the opposite end of the spectrum: the members of the People’s Front of Judea are so busy drawing insignificant distinctions between each of their positions that they are not functioning as a team. Rather, they are a horde. Each person is operating according to their own individual needs and goals, with no actual concern about the goals or strategy of the group. In a horde, everyone is a hero, entitled to his or her share of the plunder and devil take the hindmost. Cooperation is almost accidental, and the group is likely to break apart at the slightest disagreement:  the People’s Front of Judea can’t even quite figure out why the Judean People’s Front broke off, but is quite happy to yell, “Splitters!”

At a certain manufacturing company, each department was totally focused on doing its own job. None of the departments considered how their actions or decisions affected the others. Within each department, much the same thing was happening at an individual level. Rather than figuring out how to work together, they spent their time blaming one another for the inevitable failures. Fixing this issue saved the company in question several hundred thousand dollars a year.

The challenge, of course, is to find the middle ground, where the individual and the team are in balance. While it’s extremely difficult to find the exact middle, anywhere in the general vicinity works pretty well. Peak performance occurs when people are committed to the goals of the company and the team, and are also free to pursue their personal goals and work the way they want to work. Is it easy? No: less than one team in five ever gets there. However, it sure beats a horde or a mob of people chanting, “We are all individuals.”

Stephen Balzac is an expert on leadership and organizational development. A consultant, author, and professional speaker, he is president of 7 Steps Ahead, an organizational development firm focused on helping businesses get unstuck. Steve is the author of “The 36-Hour Course in Organizational Development,” published by McGraw-Hill, and a contributing author to volume one of “Ethics and Game Design: Teaching Values Through Play.” For more information, contact steve@7stepsahead.com.

The Peter Principle of the Thing

As published in Corp! Magazine

A good many years ago, I was working at a small software company. For various personal reasons, the VP of Engineering abruptly left the company and one of the senior engineers was promptly promoted to take this place. Now, this guy was an excellent engineer and I learned a great deal from him. He was a fun person to work with and someone who was always enthusiastic. He was picked for the job exactly because of those qualities and because of his engineering prowess. However, as a manager of engineering, he never appeared to have the same joy and excitement about his job. Indeed, he often gave the impression that he’d rather be writing code than managing other people who were writing the code. After the company folded, as far as I know, he went back to engineering.

At another company, Jim was a star researcher. He was brilliant. He was the person who came up with idea after idea. He did so well that eventually he was put in charge of the lab. At that point, things went downhill. Working through other people drove Jim up the wall. He wanted to be in the lab, not arguing about the best way to do things. He couldn’t go back, though, without being viewed as a failure. At the same time, he couldn’t get promoted until he “shaped up” and “made his lab more productive.” He was trapped doing a job he didn’t particularly enjoy and wasn’t particularly good at.

Both of these stories are examples of a hypothesis first proposed in the 1960s by psychologist Lawrence J. Peter. Today, the “Peter Principle” is spoken about with a certain amusement and a smug “yeah right” attitude. Unfortunately, “yeah right” is the only construction in the English language in which a double positive makes a negative. In other words, the Peter Principle is popularly seen as a joke. In fact, it’s not. Moreover, it turns out that when you have an environment in which someone can be promoted into a job that is significantly different from what they’ve been doing, the Peter Principle is virtually inevitable. The key point lies in recognizing what constitutes “significantly different.”

Well, as it happens, managing engineers is significantly different from being an excellent engineer. Managing researchers is significantly different from being a top researcher. Managing salesmen is significantly different from being a top salesman. However, being a top engineer, researcher, salesman, or whatever is exactly what brings that person to the attention of senior management. If this isn’t disturbing enough, in the study confirming this phenomenon, authors Pluchino, Rapisarda, and Garofalo also found that the best way to avoid it was to either promote people randomly or promote the best and the worst performers equally.

As Monty Python might say, “This is getting silly!” After all, how can it possibly be true that random promotion would work better than promoting the best performers into management?

Consider how much time, effort, and training is required to become a top engineer, researcher, salesman, doctor, or just about anything else. Nothing in the training these people receive prepares them to manage others. In fact, good management is, in many ways, the antithesis of being a successful solo performer: instead of doing the work yourself, you are now doing it through others. Motivating others is a different experience than motivating yourself. Helping others stay focused and on track is different from keeping yourself focused and on track.

So, without resorting to promoting people randomly, what could be done to prevent the Peter Principle from taking over in your company?

Well, if it were possible for someone to both be a manager and not be a manager at the same time, you would be able to see if they could do the job, and allow them to continue along the track they’re on if they don’t shape up. Unfortunately, literally attempting this is pretty hard on the person and the business; someone who tries to be both a manager and an individual contributor at the same time usually ends up doing one, or usually both, badly.

An alternative, though, is to take a page from sports and provide practice space for people. Just as a sports team might rotate players through different roles before figuring out what each one is best at, companies can use predictive scenario leadership games and exercises not just to train existing leaders, but to find leaders. Quite simply, when people don’t know what to do, they do what they are most comfortable doing. In predictive scenarios, people have the opportunity to demonstrate talents that might not be obvious or which may never come up in their regular jobs. For example, the best managers create order in chaotic or ambiguous situations and know how to build employees’ confidence. When you enable an entire department to participate in a predictive scenario, you can see who is actually doing those things. Rather than promote randomly, you can pick the people who most strongly demonstrate the desired skill set for the position you are looking to fill!

Is this easy? Not necessarily. It takes some serious effort to avoid the Peter Principle. I suspect that many of you reading this are thinking that you simply can’t afford do anything about it. The real question is, can you afford not to?

Stephen Balzac is an expert on leadership and organizational development. A consultant, author, and professional speaker, he is president of 7 Steps Ahead (www.7stepsahead.com), an organizational development firm focused on helping businesses get unstuck. Steve is the author of “The 36-Hour Course in Organizational Development,” published by McGraw-Hill, and a contributing author to volume one of “Ethics and Game Design: Teaching Values Through Play.” Contact him at steve@7stepsahead.com.

Real Science Fiction

As published in Corp! Magazine

See if you can identify the actual science fictional elements from the following description of a scene from the original Star Trek.

Captain Kirk and his officers are sitting around a conference table aboard the starship Enterprise. They are looking at screens set into the table, on which information is being displayed. Occasionally someone taps a screen to get more information. Kirk and the others conduct their meeting, periodically referring to the displays.

Now, the Enterprise is certainly fiction. We don’t have any starships, despite the more optimistic predictions from the TV show.

The touch sensitive video screens were certainly science fiction back in the 1960s. Today, they’re almost quaint. We’ve moved well beyond that, with our Blackberries, iPhones, iPads, laptops, and tablet computers. So, no points there.

The real science fiction in this scene isn’t the array of gadgets or even the starship. It’s the fact that not one person is using the screen for anything other than business. No one is checking email, no one is Tweeting, no one is browsing the InterstellarNet, and no one is playing Angry Birds. Everyone is actively engaged in the meeting. Granted, these meetings usually occurred when the Enterprise was about to be destroyed by Romulans or something, but even taking that into account the behavior of the crew is still pure fiction. How many meetings have you attended where everyone was actively engaged like that? While it does happen, most businesses I speak with would like to see it happen rather more frequently than it currently is happening.

The first, and perhaps most important, thing about getting people engaged in meetings is to recognize the feedback you’re getting. When you start a meeting and everyone is already nose deep in a Blackberry, that’s feedback. The trick is to recognize what it’s telling you. Some possibilities include:

• Participants do not see the point of the meeting.
• Participants are not interested in the topic or material being discussed.
• Participants do not see how the meeting is relevant to the work they’re doing or the deadlines they are facing.
• The meeting is lacking in focus or does not have clear objectives.
• You are boring.

Let’s take the last one first.

Sadly, not all presenters are the most interesting people on the planet. Some speak in a monotone,. Others don’t know when they’ve made their point and keep talking. Still others don’t respect the schedule. Naturally, if you’re reading this, that clearly doesn’t apply to you. However, not everyone listening to you realizes that. Therefore, it helps considerably to pay attention to your own presentation style so that you can be sure to get through to those who might otherwise assume that you are going to bore them.

Why are you holding your meeting? On Star Trek, there’s always a good reason for the meeting: for example, figuring out to avoid being eaten by a giant space amoeba. While it is unlikely that you are facing a similar threat, nonetheless there needs to be a point to the meeting. What is the goal? At the end of the meeting, what do you expect to have accomplished? If the answer is that you simply wanted to convey information to people, or have people share status updates, perhaps emails would better. After all, do the status updates really need to be shared at that moment in that place?

Along with the point of the meeting, it also has to feel important to the people you want present. They need to know that being there matters to them. This can be surprisingly tricky: far too often people assume they need to be present when they don’t. Since there are times when, surprising as this may seem, attendance at meetings is used as a gauge of employee engagement, it’s not too much of a stretch to realize that people might be attending the meeting to avoid being seen as disloyal. You can avoid this unfortunate misperception by having a clear agenda for the meeting and making that agenda known ahead of time.

Another advantage of a clear agenda is that the purpose and time requirements for the meeting are known ahead of time. This allows your employees to better plan their schedules. A documentation review session might be held for a specific period of time, while a brainstorming session might be more open-ended. Of course, even then it’s best to not “go until you are done.” Rather, define the duration in advance and also clearly define how you’ll know when you’re done. If you find that people can’t agree on how they’ll know when they’re done, you need to resolve that before you hold your meeting!

I’m occasionally asked when is the best time to start a meeting. Early? Late? Mid-day? The answer is that the best time is the time you specified. When people know when a meeting will start, they can plan accordingly. They walk into the conference room with their brains already focused on the meeting. If you don’t start on time, you create an opening for them to become bored waiting and get sucked into their smartphones. Once that happens, it’s much harder to get their attention back than if you’d not lost it to begin with.

A great deal of Star Trek is no longer science-fiction. What are you doing to make sure that employee engagement in meetings is on that list?

When the Fat Tuesday Sings

As published in the CEO Refresher

Hire Slow And Fire… Slower?

How often have you heard someone from a company say, “We hire slow and fire fast?”

I’ve heard this line so often that it sounds sort of a like a mantra or one of those wise sayings that are taken for granted but are generally wrong: “I invest for the long term,” or “There is no room for emotions in the work place,” or “The Red Sox will never win.”

This is not to say that it’s always wrong to “hire slow.” However, it’s important to understand the different ways that a company can hire slow. Some of them make more sense than others. What, fundamentally, does it mean to hire slow? For that matter, what does it mean to “fire fast?”

Read the rest at the Journal of Corporate Recruiting Leadership

Business Lessons From the Avengers (pt 1)

I have a fondness for old time radio podcasts. Indeed, one of the big advantages of the iPod is that it created a whole slew of opportunities for those of us who want to listen to such things. One of my discoveries was a podcast of the Avengers radio show. Yes, there was one, although it didn’t really come from the Golden Age of radio, rather being adapted from the TV show. Nonetheless, listening to episodes of the Avengers pointed up four very important points:

1. Russian accents are only the second most villainous sounding accents. British accents are the most villainous, probably because they always sound like they have anti-social personality disorder.

2. British accents also sound heroic, at least when they aren’t the villains.

3. Old time commercials in a British accent sound like something out of Monty Python.

4. When word “helpless” is said immediately before “Emma Peel” you know someone is in for a very nasty surprise.

I’m not entirely sure what this means, although the first might reflect my image of Boris Badenov as the quintessential Russian villain. Since this year is the 50^th anniversary of Rocky and Bullwinkle, perhaps Russian accented villains will make a comeback. I’ll leave that to James Bond (or Moose and Squirrel). What is more interesting is how well a 1960s cold-war espionage show holds up half a century later. Despite all our changes in technology and politics, and the much touted generational shift in the workplace, it should come as no big surprise that human nature hasn’t changed at all: people are still, basically, people, and John Steed and Emma Peel are just as suave and sophisticated today as they were fifty years ago. Despite all the noise about Boomers, Gen X, and Gen Y, there are also some things about the workplace that simply haven’t changed, although our perception and understanding of them might have.

In my book, “The 36-Hour Course in Organizational Development,” I discuss the twelve key elements of building a successful business. These elements are, in many ways, as timeless as John Steed and Mrs. Peel, if not always quite so sexy. They are, however, the key points that any entrepreneur needs to work with if you want to maximize your chances of creating a successful business.

Read the rest at Under30CEO

The Challenges of Hiring Slow

In an upcoming Journal of Corporate Recruiting Leadership I talk about the perils of “hiring slow” and “firing fast.” As I’ve been doing, I wanted to give you just a taste of the “hiring slow” part here.

A company can hire slow for two major reasons: because they know exactly who they’re looking for and are willing to wait for the right people to apply, or because they don’t know who they’re looking for and believe they’ll know when the right person applies.

The first is more useful. If you’ve done your homework and figured out the characteristics of the employees you’re looking for, and if you’ve trained your interviewers to recognize those people, then by all means hire slow. Take your time and wait for the right people or, better yet, go out and attract them to the company.

Read the rest at ERE.Net

The Taboo of the Bananas: Organizational Culture and Recruiting

Once upon a time there was a company known as Robotic Chromosomes. Don’t bother Googling it; it’s no longer in business, and besides, that’s not the real name. Robotic Chromosomes had a way of hiring programmers that isn’t all that unfamiliar to folks in the software industry: logic puzzles. Like Microsoft, and various other companies, Robotic Chromosomes put every potential engineer
through a series of logic puzzles in order to determine if those engineers were qualified.

There is, in fact, no actual correlation between programming ability and the ability to solve logic puzzles.This did not stop the folks at Robotic Chromosomes, who were convinced of the validity of their methods and were not interested in allowing facts to get in the way.

Even within the logic puzzle method, though, there were some definite oddities and idiosyncrasies that distinguished Robotic
Chromosomes from other companies.

For several years, no one skilled in visual presentation or user interface development was ever good enough to solve
the logic puzzles, or at least they could never satisfy the solutions that the existing engineers believed were correct.

Read the rest at the Journal of Corporate Recruiting Leadership

I Told You: 360-Degree Feedback Done Right

“We were thinking of doing a 360-degree feedback to help him understand what other people think.”

This very frustrated comment was made to me recently regarding efforts to explain to a very senior manager that his style of leadership wasn’t working for his team. At that point, all efforts to convince him to change were foundering on the manager’s simple perception that things were working just fine.

Such being the case, it’s hard to imagine how a 360 can help. Sure, he might find that his subordinates don’t like him very much, but he might also feel that his job isn’t to be liked, but to get people to perform.

Read the rest at LabManager Magazine.