The Business Sensei

Baker Street Irregular

Fans of Sherlock Holmes might remember the occasional scene in which a scruffy urchin appears out of nowhere, speaks briefly to Holmes, and then disappears again. Holmes then solves the case, and explains to the stunned Watson that he cultivated the urchins as sources of information. They are his “Baker Street Irregulars.”

For those who prefer a more recent image, fans of James Bond movies will remember the endless parade of agents who show up long enough to give Bond some critical piece of information or equipment. Unlike Holmes’s informants, the mortality rate amongst Bond’s “irregulars” tends to be awkwardly high. Star Trek, of course, was famous for its “Red Shirts,” the red uniformed security officers who would always die within minutes after appearing on camera. In all these cases, the character shows up on camera just long enough to move the plot forward and then disappears. In a very real sense, they have no existence before they are needed and no existence after their function is fulfilled.

When they are present, they exist only to meet the needs of the story, or at least of the hero.

Of course, these examples are all fiction. What bearing could they possibly have on reality? When I run predictive scenario management training exercises, a type of serious game, I find the same behavior manifests: many participants tend to assume that the other players in the scenario are only there to support their goals. They don’t quite recognize that each participant has their own goals and their own needs that they are trying to meet. As a result, conflict often erupts between different individuals and groups who each assumed that the other individuals and groups were present only as “red shirts.”

Read the rest at the American Management Association

Reverse the Polarity of the Neutron Flow: The Magic of Neuroscience

I was recently quoted in an article called “Brain Training.” The article is on applying neuroscience to the workplace, and all the great benefits this would bring about.

I was skeptical. My comment was this:

“While it’s certainly possible to gain some improvement in decision making abilities by better understanding how our brains work, I question how significant the improvement will be “in the field.” It strikes me as rather like trying to learn jujitsu or tennis through a detailed study of body mechanics. Will it help? To some degree, but ultimately, if you want to become skilled in those sports you have to get out and practice under the supervision of a good coach.

To the extend that brain sciences can help us develop better training programs, they are a big plus. But they cannot replace practice.”

The author didn’t quite use all of this, but he kept the general point.

Today, I read about a study out of Harvard that found that simply referring to neuroscience as the explanation for a phenomenon increases the likelihood that people will believe the explanation, even when the explanation has no inherent meaning: “the effect is due to frontal lobe circuitry.”

In its own way, it is no more meaningful than the famous line from Doctor Who: “Reverse the polarity of the neutron flow!” which Jon Pertwee famously made up after he forgot his technobabble.

And yet, it works. Businesses are spending tons of money using neuroscience to explain employee behavior instead of looking at what’s happening in front of their eyes!

Why are they so convinced that neuroscience will find the answer, and that the answer will then be easy to apply in the office? Must be due to frontal lobe circuitry.

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.

8 Questions About Your Hiring Process

What is the most important factor in successfully recruiting top candidates? If you said things like salary, benefits, or the economy, you’d be wrong. It’s your organizational culture. I have a longer article in the upcoming Journal of Corporate Recruiting Leadership about the role of organizational culture in the hiring process. To give you a taste of it here … let me first say that when you start to throw around terms like “organizational culture” you may think that it’s academic, or that it’s abstract. It’s not.

Read the rest at ERE.Net

Deja vu All Over Again

“This is like déjà vu all over again.”

–          Yogi Berra

In the classic British science fiction series Doctor Who, there is a scene in which the Doctor is trapped in a time loop: the same events keep taking place over and over with no end in sight. Naturally, this being fiction, the Doctor quickly recognizes what’s going on and figures out a way to break out of the loop. In real life, it’s not quite so easy. Granted, actual time loops tend to be pretty rare; not so the feeling of being stuck in one.

Read the rest in the CEO Refresher

Of steaks and lions

There’s an old saying about throwing steaks to lions in the hopes that they’ll become vegetarians. Apparently, if you do it long enough, the lion eventually grows old, loses his teeth, and gums the steak to death. But they’ll at least consider vegetables at that point.

The current political dance in the Senate is a rather interesting example of lions and steaks. We have a minority party that has found that the best way to succeed is to do everything possible to prevent the majority from accomplishing anything. The majority keeps throwing them steaks and hopes that they’ll become vegetarians. Why? Well, let’s look at this as if it were a corporate boardroom and see what lessons can be learned.

Now, to be fair, most businesses don’t have 100 vice-presidents. However, they have enough. I regularly hear tales of businesses (sorry, I can’t name names) with small coalitions competing with or refusing to cooperate with the majority. In each case, the minority players are working to make the majority look bad. Why? To gain the favor of the CEO, and hence to accrue more personal power to themselves. It seems more than a little silly, since it doesn’t do the company any good: even if the minority is right in their ideas, the cost of the infighting does more to hurt the company than any benefit that the minority’s policies would have brought. And when the minority’s policies are wrong, the damage is even greater.

Unfortunately, what has happened is that the minority coalition has lost track of the goals of the company: they are focused on their own goals, which usually involve succession to the CEO position, a larger scope of authority, bigger pay packages, and so forth. The reasons are as varied as the companies. Sometimes the minority coalition fails and is fired by the CEO or the Board. Sometimes they succeed, and the majority is fired.

What determines the result of the struggle is how the majority handles the competition. If they try to be nice and refuse to compete back, the minority is only encouraged. If they are so afraid of looking bad that they refuse to compete, they just end up looking bad.  It’s only when the  majority demonstrates that they are willing to play the same game, and compete as viciously as the minority that the game changes. Quite simply, in every group in which competition arises, the only way to end that competition is for the majority to demonstrate that the cost of competition is greater than the cost of cooperation and the rewards of cooperation are greater than the rewards for competition.

It doesn’t much matter if we’re talking about IBM or the US Senate. So long as we’re dealing with people, the dynamics are the same. Only the scenery changes.

7 Things You Should Communicate

This is the short version of an article that was accepted for publication by the Journal of Corporate Recruiting Leadership. The full version will probably be out in a month or two.

It’s not enough to say that if you want to keep the best people when the economy improves, you just need to communicate more. It matters what you say and how and when you say it. Communication occurs in the context that you’ve created over time, and how your communications will be received will depend a great deal on that context. If you want to keep your best people, then you need to do your homework. (Or, conversely, if you want to recruit someone else’s key people, find companies that did not do the homework suggested in this article.)

Read the rest at Ere.net

Tuning Your Team

It’s easy to put together a group of knowledgeable and skilled individuals, but a team of high performers is not the same as a high-performance team. Just think about the Olympic Basketball Dream Team of 1992, made up of top American players. While they certainly played great basketball, the team never performed at the level people expected, given the skills of the individual players. Transforming your group from a set of people who happen to be going in roughly the same direction into a high-performance team isn’t always easy, but the results are always worthwhile:

Read the rest in The Imaging Executive

Boiling the Frog

There is an old and hoary claim that if you put a frog in boiling water, it will immediately jump out, but if you put it in cold water and slowly increase the temperature, the frog will sit there until it cooks. In fact, this happens only if the frog is equipped with little frog cement galoshes rendering it unable to jump: frogs are too smart to be boiled alive. They leave long before the water gets hot enough to cook them. Why, then, does this story have such longevity?

Read the rest at the CEO Refresher.

Don’t Just Do Something, Stand There!

I recently had the CEO of a certain business very proudly tell me that she was so busy looking for clients and helping her staff deal with the economic crisis that she didn’t even have time to sleep. Was she serious? Yes, she was. Were things actually working out for the business? That was less clear, however it didn’t matter. They were Taking Action, and that’s what really counted.

When we’re feeling stressed, the instinctive response is to take action. Taking action feels good; it provides an outlet for our energy and a feeling of accomplishment. It just may not actually be useful. Sometimes it really is better to follow the advice of the old joke, “don’t just do something, stand there!” After all, if you take the wrong action too frequently, you may well find yourself without the time, money, or energy to take the right actions.

Now, it’s certainly true that sometimes the toughest problem is just to get started. It’s sometimes the case that taking some action is better than taking no action at all. However, it does help if the actions being taken are those that have at least some chance of moving the business forward. It helps even more if the CEO can clearly evaluate the success or failure of each action and adjust course as necessary. That’s hard to do when you aren’t sleeping.

A lack of sleep leads to more than just a desire for an extra cup, or ten, of coffee. There is a reason why athletes want a good night’s sleep before a big game and why legendary investor Jesse Livermore stated that one his secrets of success on the stock market was being well rested. Lack of sleep interferes with motivation, judgment, and planning. It makes one more reactive, less able to stop and look before leaping. Worst of all, lack of sleep very quickly degrades a CEO’s ability to recognize a losing strategy and replace it with one that might work.

As anyone who has taken a first aid class recently will recall, the first thing you need to do in an emergency is evaluate the situation. That’s difficult to do when sleepy. Part of that evaluation involves determining how quickly you need to act. Even if there’s a wall of flame rushing toward you, a few seconds of thought can still make the difference between life and death: caught in a massive forest fire, firefighter Wagner Dodge stopped and thought. He survived the fire while those around him were engulfed. Wagner Dodge had only seconds to come up with an innovative solution to his problem. The good news: he did. The bad news: he had never developed strong bonds of trust and loyalty with his team. Under pressure, they ignored him and perished in the flames.

Today, many businesses are still facing the financial equivalent of that wall of flames. Instead of stopping and thinking, they are leaping into action. In many cases, those actions are not working out so well. The CEO who isn’t sleeping isn’t helping her company or herself. She is, however, giving herself the opportunity to undermine her own credibility with her staff. The longer that goes on, the more likely they’ll give up on her at just the wrong moment.

So what should a CEO do?

• Build up a reservoir of trust and reinforce it daily. Help employees understand your decisions. Invite employee feedback, ideas, and suggestions.
• Build and maintain loyalty: this is the worst time to cut employee benefits or have an opaque layoff policy. As demonstrated by IBM’s Tom Watson or HP’s Hewlett and Packard, building employee loyalty makes a tremendous difference in tough times. Without it, they won’t follow you when you most need them.
• Don’t just react to the crisis. Stop and think. Brainstorm solutions with others. Find someone who will give you unbiased feedback. Take full advantage of the eyes, ears, and brains around you.
• Take care of yourself. Exercise and sleep are critical to maintaining perspective and functioning effectively under pressure. Despite the failing equipment around them, even the Apollo 13 astronauts took the time to sleep before attempting their return to Earth.
• Anticipate success. Never pass uncertainty down to your team members.

Many companies will survive the current economic tsunami. Fewer will prosper as the economy turns around. It will be those who know when to stand there before they act who will be in the second group.

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