The Business Sensei

Of Cats and Unwanted Prizes

Originally published in Corp! Magazine

I have three cats. Cats being the creatures that they are, I have only to sit down to read a book and instantly there is a cat on my lap. Regardless of which cat it is, a familiar pattern ensues: first, the cat carefully positions itself in front of my book. Once I adjust to move the book, the cat then carefully positions itself on one of my hands. This continues until I give the cat the attention it’s seeking. At that point, it first butts its head against me and then, purring loudly, turns and sticks its behind in my face.

I am sure that there are people who find this end of a cat absolutely fascinating. I’m even quite sure that there are contests in which cats win awards for having the most beautiful behind. For cat breeders and cat fanciers, it can be a big deal to win one of these cat trophies. It is a cause for great celebration.

In an office environment, however, a catastrophe is anything but a cause for celebration.

The worst thing about catastrophes is that they happen about as often as a cat sitting down on top of the book you’re reading. At least, to listen to some managers, it certainly sounds that way. Somehow, every little thing, every small problem, was magnified until it had the aura of impending doom. In short, every setback was becoming a prize for the cat with the most beautiful behind. At one company, the conversation went something like this:

“We’ve found a major bug in the software.”

“We can’t delay the ship.”

“We can’t ship with this bug.”

At that point, the manager started screaming that the product would go out on schedule, or else. When he finally calmed down and I was able to talk with him privately, he told me that he knew that if the company didn’t ship on time, the customers would abandon them and they would go out of business. He was happy to ship non-functional software to avoid that fate.

When he calmed down still further, he agreed to delay the ship.

I am sure that most readers are chuckling to themselves right now. After all, delays in software are legendary. Obviously, this manager was overreacting. True enough; the question is, why? Why would a perfectly sensible, intelligent man react so negatively to something which is, frankly, a common event in the software business?

It turns out that this particular company prided itself on holding to very aggressive schedules. The schedule was so aggressive that they were virtually always running behind. Therein lay the problem.

Time is a funny thing. We react very differently depending on how we perceive it. Being behind schedule all the time had the effect of generating a certain sense of urgency, which was the stated intent of the aggressive schedule. Unfortunately, the urgency generated in this situation was of the slightly breathless, heart-pounding sort similar to what one might experience if being chased by a very large cat of the “has a big mane” variety.  A cat which, I might add, is looking to do more than just sit on your book.

The problem with aggressive schedules is that, in fact, being behind schedule can generate the same panicked response in people that they would feel in a situation which actually was dangerous. While in those situations, we’re very good at running away or fighting desperately, but we’re not good at making cool, rational decisions or developing innovative solutions to problems. Each pebble encountered along the road becomes a giant boulder. When we do finally get to the end of the project, rather than feeling a sense of accomplishment and success, there’s more of a sense of relief that at last it’s over. What’s missing is the thrill of victory that energizes people for the next project. That feeling of success is the key to getting, and keeping, people excited and motivated.

In short, instead of the team beating the schedule, the schedule was beating them.

Conversely, when a team is running slightly ahead of schedule, something very different happens. Running ahead of the game means that the team is feeling a constant sense of success. When people feel successful, they work harder, they are more creative, and they look forward to coming into work each day. Teams that are running ahead of schedule are more likely to develop innovative new solutions to problems rather than just slap on band-aids. Feeling that you have the time to stop and think is critical: just think about how easy it is to miss the obvious when you are feeling rushed.

The trick is to view your schedule as a living document. It’s something that you will constantly adjust according to the situation, especially at the beginning of a project. The less you know about potential difficulties down the road, the harder it is to plan: so don’t. Instead, plan to plan. As you move forward, you can revise and project the schedule further and further into the future.

If you find yourself running behind, that’s feedback. Pay attention to what it’s telling you. Is something more complicated than expected? Is someone overwhelmed with a task that turned out to be significantly more time-consuming than you thought? Did something go wrong? Is a vendor habitually late with parts? Is your schedule just plain too aggressive?

If you’re running ahead, that’s also feedback. It might mean that the schedule is too easy and your team isn’t being challenged. Be willing to become more aggressive. It could mean that you need to slow down: are people rushing and cutting corners? At one company, pressure on QA engineers to rush product inspections led to some very expensive and embarrassing recalls and some very irate customers. Moving way ahead of schedule could also mean that your team is working too hard too soon: success is a marathon, not a sprint. Burn out early and you won’t reach the finish line.

Leave the catastrophes to the cats.

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, or to sign up for Steve’s monthly newsletter, visit www.7stepsahead.com. You can also contact Steve at 978-298-5189 or steve@7stepsahead.com.

What Are You Really Asking For?

This article was originally published in Corp! Magazine.

The names have been changed to protect the silly…

History teacher Norman Conquest had a very difficult student, Sasha Pandiaz. Sasha was constantly disruptive in class, driving Norman up the wall. Finally, Norman decided on a simple solution: when Sasha misbehaved, he would be sent out into the hall for five minutes. If he misbehaved three times, he spent the entire class sitting in the hall.

Inside of a week, Sasha was spending the entirety of each class in the hall. Sasha, it turns out, didn’t like the class. Although Norman thought he was punishing Sasha, apparently no one bothered to inform Sasha of that. As a result, Sasha was quite happy to miss each class; the long-term negative of a bad grade in the class was simply too far off and abstract to change Sasha’s behavior.

Fred was the VP of Engineering at Root-2 Systems. Fred had the habit of indicating his displeasure with engineers in his department by assigning them projects that were not particularly fun or interesting. At least, Fred didn’t find them particularly fun or interesting. Unfortunately, the engineers did. Rather than feeling punished, they thought they were being rewarded! As one engineer put it, “I thought Fred was ready to kill me, but then he gave me this really cool project.”

Thus, for example, instead of realizing that Fred was punishing them for blowing off a meeting, engineers believed he was rewarding them for skipping a meeting that they thought would be a waste of time. As a result, they kept repeating the behaviors that were infuriating Fred. By the time he figured out what was going on, Fred was bald.

At Mandragora Systems, Joe took over a key product team. He regularly exhorted his employees to work together: “We’re a team!” Joe cried loudly and often. But when it came time to evaluate performance, the song was a bit different:

“What were you doing with your time?”

“I was helping Bob.”

“If you’d finished your work, why didn’t you come to me for more?”

“I hadn’t finished.”

“Then why were you helping Bob?”

“It was something I could do quickly and would have taken him all night.”

“If Bob can’t do his job, that’s his problem. Worry about your own work.”

Astute employees soon realized that the key to a good review was to focus on their own work and devil take the hindmost. While Joe won points with his boss for his aggressive, no-nonsense style, and for his success in identifying weak players and eliminating them, something rather unexpected occurred: team performance declined on his watch. Instead of a team working together and combining their strengths, he ended up with a group of individuals out for themselves and exploiting one another’s weaknesses. The fact that this was damaging to the company in the long-run didn’t really matter as it was very definitely beneficial to the employees in the short-run.

There are several lessons to be drawn from these experiences.

First, it doesn’t matter whether you think you’re rewarding or punishing someone. What matters is what they think. If they think they’re being rewarded, they will naturally attempt to continue to get those rewards. If that means you lose your hair, so be it. If, on the other hand, they think they’re being punished, or at least not rewarded for their efforts, they will change their behavior no matter what you might say. Your actions really do speak louder than your words.

Second, no matter how much we might tell employees to think about the long-term rewards and delayed gratification, short-term rewards offer an almost irresistible lure. If you create a contradiction between the short-term and the long-term, most people will go for the short-term.

Third, if you want a strong team, you must reward team-oriented behaviors. If you only reward individualism, you’ll get a collection of individuals. For some jobs, that really is all you need. For many other jobs, though, it’s virtually impossible to succeed without a team.

In the end, people will do whatever they hear you telling them to do. It pays to make sure that what they are hearing is what you think you are saying.

How to Use Sports to Advance Leadership and Organizational Development – Steve Balzac with James Rick

Here’s the blurb from my appearance on the Full Potential Show. For the actual show, click here.

Can sports be used for more than just fun and pleasure? You bet!  The same disciplines or character development, leadership and team based skills applies to almost every other domain in life.

Steve Balzac is a man of many talents. He is a consultant, speaker, and author of 36-Hour Course in Organizational Development. He is a popular speaker on such topics as leadership, team building, interviewing skills, and sports performance. In this interview, he shares the lessons he has learned from the sports he excels in – Jiu Jitsu and fencing – and how they tie-in with the honing of leadership and organizational development potential.

THE TIE IN

a)    Use the other person’s force against him (as in Jiu Jitsu)
b)    Meet and go with the force of the other person in order to take him to where you want him to go
c)    In a difficult situation, attract the other person to where you want to take him
d)    Don’t be afraid to try different techniques, even if you have to look like an idiot sometimes
e)    Explore and practice the fundamentals well (as in fencing)
f)    Build yourself to a point where you can stay focused for long periods of time
g)    When you’re up there, you should not care whether you win or lose. If you focus on the outcome, you doubt yourself and hesitate
h)    After preparing your team, give them permission to go off and achieve what they need to
i)    Look at mistakes as the cornerstone of innovation and as a part of the process of evolution
j)    Determine if mistakes repeatedly committed is due to a flaw in the system
k)    Don’t do all your research ahead of time – it’s impossible to know everything ahead of time
l)    Develop a culture where it’s acceptable of everybody to commit mistakes, including you
m)    Consult with your followers to show them you’re interested in listening to their ideas

FINAL POINTERS ON LEADERSHIP AND ORGANIZATIONAL DEVELOPMENT:

1)    Tell your own story – what you’re trying to do and why you care about it
2)    While you should have an outcome, dwelling on it during show time can actually hinder performance
3)    Walk your way backwards through the steps from the outcome – this will make the first step very easy
4)    Don’t be afraid to ask someone to show you the way (no team makes it to the Olympics without a coach). This will shorten your learning curve.

FINAL THOUGHTS

• “Experiment” is synonymous with mistakes and breakthroughs.

Who Betrays One Master

A nervous looking man in a suit slips furtively through the streets of an unnamed city. He comes to an office building and, checking to make sure that he isn’t being watched, slips inside. There, another man greets him.

“Do you have the plans?” the second man asks.

“Do you have the money?” replies the first.

Perhaps they haggle for a moment, but then the second man hands over the money and the first man hands over an envelope. The second man glances into the envelope.

“I see you kept your word.”

“You earned it,” replies the first man as he turns to leave.

“No,” says the second, as he pulls a gun and shoots the first man, “I bought it.”

“I betrayed my company for you! I proved my loyalty.” gasps the first man, as he falls to the floor.

The second man looks down at the body on the floor and says, “The man who betrays one master will assuredly betray another.”

If this scene sounds familiar, it probably is. Some variation of it appears in hundreds of movies, from James Bond to WWII action films to fantasy adventure. The trope is a simple one: a man betrays his country, company, organization, or teacher. The person to whom he sells out reaps the rewards, but never believes the traitor’s protestations of loyalty to his new masters. Eventually, it ends badly for the traitor.

Now, if this scenario were only a work of fiction, there would be little more to say. Unfortunately, the fictional part is the end: in real life the disloyal person is rewarded and given every opportunity to betray his new masters.

Read the rest in the Journal of Corporate Recruiting Leadership

Common Hiring Mistakes

When I spoke at ERE Expo, Todd Raphael, editor of the Journal of Corporate Recruiting Leadership, interviewed me on why companies make hiring mistakes. The interview is now up on YouTube: http://www.youtube.com/watch?v=GUFbWww7Pic.

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.

I Don’t Believe It!

Recently, I was running a leadership and negotiation exercise, which involved participants attempting to determine who they could and could not trust. The exercise required that participants work with one another and included various techniques for verifying the truth or falsehood of someone’s claims.

The dynamic between two of the participants, we’ll call them Fred and Barney, became extremely interesting: Fred needed Barney’s help, but Fred was convinced that Barney was lying to him and looking for a way to double-cross him on a business deal. Barney, meanwhile, was going to great lengths to prove that he was telling the truth and dealing in good faith. The more evidence Fred found that demonstrated Barney was telling the truth, the more Fred was sure he was lying. Not only was Fred not convinced, he even came up to me and complained that he thought that Barney was violating the rules of the exercise because he was clearly lying. When the exercise was over and I debriefed the participants, Fred was stunned when he found out that Barney was telling the truth all along.

Part of the value of this particular exercise is that behavior in the exercise tends to correlate well with behavior in the office. Unlike the exercise, however, in real life we don’t have any magical means of verifying the truth. Of course, as we can see, even that doesn’t necessarily matter. Once an opinion is formed, sometimes nothing will change it. That may be fine in some obscure situations, but in business it can get you in trouble.

Read the rest at Corp! Magazine

Read the first chapter of my book (via Amazon Kindle for the Web)

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