Monday, March 28, 2011

Don't Spam Me, Bro!

Auto DMs = Auto Unfollow*

A number of us in the #usguys Twitter tribe were sharing how obnoxious auto-Direct Messages (DMs) are on Twitter.

To summarize our chat: auto-DMs are obnoxious.

Here's the thing. You follow someone because you like what they tweet, or maybe because they follow someone interesting, so you figure, "Hey, we have this third party in common. Maybe this is a good match for us to get to know each other, too." I've found many of my favorite people on Twitter this way, a second or third level in.

So you reach out, and what do you get in return? A spammariffic message in your email inbox saying something inane such as, "Thanks for the follow!" Um... you're welcome ...-ish. I don't need another computer-generated email, is the thing.

The Shameless Self-Promotion

Even better, though, is the auto- shameless self-promotion. "Thanks for following! Friend me on Facebook, too (with link)." Or "Visit my website to learn all about ____ (whatever it is they're selling)."

Come on, folks! You can do better than that. Would you walk up to someone at a party and say, "Follow me on Facebook!" or "Check out my website!" Isn't that how people catch social diseases?

It could just be me, of course, but I'm a little slower off the mark. How 'bout we start with some polite chit-chat. Let me learn about you before we take it to the next level, huh? Just sayin'.

My friend @LewisPoretz has even gone so far as to create a LinkedIn group whose only rule for exclusion is shameless self-promotion. He tells me he's already had to exclude 3 of his LI pals in accordance with this one simple rule.

Folks, no one's perfect - some of us far less than others. (That would be me!) We're all trying to feel our way through the exciting new world of Social together, and it's going to involve all sorts of missteps - I've made more than most as I continue to educate myself, so I'm not just saying that. The more you fail the more you learn, as the saying goes.**

But really. Show some shame - and some tact - when you self-promote.

Next Social Media Monday, we'll discuss TrueTwit. As the ironically completely un-ironic name suggests, it takes a true twit to think this imposition is acceptable.


For earlier Social Media Monday posts:


* I wish I could remember who tweeted this piece of wisdom this weekend on #usguys. (Was it @starry_girl?) If you know, I'll amend this post. Sorry!

** Maybe it's just me who says this. If so, please make it your own. It really does work.

Sunday, March 27, 2011

CEOs: Don't Sideline Your Best Talent

Quick quiz: what was the day job of the writer and star of the Best Movie of 1976 before he made that film? (Answer below).

A few years ago, the last time the economy was booming, I read one article after another dispensing the same career advice: if you want to move up in your company, leave it. Work elsewhere at a higher position, then (if you still want to) come back - in this way, you can jump the line and gain a much higher position than if you stayed.

Kinda hard to remember a job market so abundant with opportunities that people would throw away perfectly good situations with a current employer for so calculated a move, isn't it?

Here's the thing, though: I saw it work with my own friends and acquaintances again and again and again. And I'm watching this very thing happening again now.

"Whoa!" I hear you shout at your screen. "That's just irresponsible, Ted! Stop that!!"

Okay, okay. As with all responsible career advice, this one comes loaded with caveats. I do not advise you to try this at home (or at the home office). And I certainly am not suggesting that this is a trend - yet. Most people I know are still hunkered down, holding onto their current positions in fear of disaster should they lose it. Given recent events, that's pretty smart.*

But in some sectors, especially technology, the Great Recession is already over. Some firms are once again finding it hard to fill their demand for talent. They're spending all sorts of money on recruiting efforts, and more money on new-hire training, and even more money when some of those new-hires don't fit and have to be replaced - and meanwhile, they're blowing off the greatest pool of already-trained talent any recruiter could ever dream of: their own current employees.

Yes, CEOs, I'm talking to you. Especially if you're in technology, your own company is more than likely hobbling itself by ignoring its own talent within the ranks. If you don't personally, as your company's leader, do something dramatic to reward your staff for elevating those beneath them, you're limiting your firm's growth.

Companies are run by people, and we people are little more than the sum of our prejudices. One prejudice we all suffer from, to one extent or another, is to pigeonhole people. We think,

George is a chicken farmer.
Susan's a waitress.
Andy's a shipping clerk.
Bill's a dropout.
Henry's a mechanic.
Phil's a production assistant.
Sly's an elephant shit-shoveler at the zoo.

...All of which is true. For one period in their careers, all of the people I listed above were employed in those jobs. But they moved on:

George Boldt managed, then owned the Waldorf-Astoria hotel.**
Susan Sarandon is a major Hollywood star.
Andrew Carnegie was the second-richest man of his day.
Bill Gates is the wealthiest man alive.
Henry Ford founded a major car company.
Phil Beuth was President of ABC Entertainment.
Sylvester Stalone's debut movie won three Oscars, including Best Picture 1976.

I could go on with this list all week. The bottom line is, you've got talent in your firm right now that you're grossly underutilizing. What are you going to do about it? Are you going to force your best and brightest to leave because the only option within your company is the slow boat to China? Or are you going to demand that your direct reports reach down amidst the ranks and elevate some of your sharpest talent several rungs up the ladder, and then praise and reward them handsomely when they do?

The most innovative, successful businesses don't make their people stand in line for recognition. "Wait your turn" should not be part of your company's phrasebook.

If it is? Then you deserve all the struggle and lost opportunity that plagues so much of the corporate world today.


* Read this recent post for more sober-minded career advice.

** For the whole story about this remarkable customer service expert, read Five-Star Customer Service

Friday, March 25, 2011

Not In Your Budget? Change Your Budget!

My friend Gene knows a thing or two about business. While still in his twenties, he created a brand you probably know well (especially if you have kids), took it over $100 million as president, and handed the keys to his backer.

Then he did it again. President. Past $100M. Done.

Then he did it again.

Now, Gene is an author and professor emeritus living by the beach here in Naples part of the year and at Lake Tahoe the rest.

So when you read this, I want you to understand, it isn't coming from me. I may have enjoyed some measure of success along the way in my career, but I've yet to match what Gene can do in his sleep.

Ready? This is Gene's advice to business leaders looking to get stuff done:

"If it isn't in the budget and it will help you make more money, change the budget!"

I know that's going to make an awful lot of professional manager-types uncomfortable. But I hope you'll give it some thought. Compare your results with Gene's before you judge.

Wednesday, March 23, 2011

And For Best Critic, The Winner Is...!

If you're after universal acclaim, you're chasing a fool's errand. There is just no such thing as popular consensus. Savvy brands get this, and they embrace it.

Think of vanilla ice cream. Who hates vanilla? It isn't flavorless, just... close. The trick is to start with vanilla and then add stuff, like chocolate chips for starters, or a warm brownie and some hot fudge, plus a little whipped cream and a cherry. Yum. Now you're getting somewhere.

Dumb brands vanilify.* They buy a popular treat from a small producer, and then strip it of flavor so it will have mass appeal. "Too spicy," they say. "Children and old folks won't like that." So they tone down the heat. "Those fresh ingredients are too expensive," they say, so they replace vine-ripened, uber-fragile fruit with frozen and sterile cardboard produce that ships and stores better and so is much less costly.

...And much less delicious. Then they market the heck out of it, and revenues soar - never realizing they're just trading one expense (best-in-class ingredients) with another (advertising).

Don't vanilify. Stand for something!

I see this in my own career just about constantly. It has become a running joke with my wife and me that I will alienate someone - and often more than just one someone - in each talk I give, no matter the group. I says it like I means it, and so I inadvertently step on toes. Now, I really do try to be gentle, and I hate hurting feelings. But when I'm talking to a audience of business owners and I mock the boss who hides in his office all day, sure enough, there will be just such a boss in the third row on the left. Or I pull out an example of a company that gives piss-poor service and, wouldn't you know it, someone's son is a vice president there. Oops. Sorry pal. But his bank really does suck, and you don't have to take it from me, because they just made a media company's ten worst list (again).

So too with this blog. I actually read a post on someone else's blog yesterday that mocked my all-time most popular post, in which I explain my Twitter follow-back policy. It was pretty funny, actually.

Every so often I encounter someone in real life or online who just isn't buying what I'm selling, no matter how appealing I try to make it - and you will too! In fact, let me go one further, because this is vitally important:

If no one is criticizing you, you're doing something wrong!

You're being too vanilla. You're trying so hard to please everyone that you run the risk of inspiring no one.

There are negative people out there, people who resent you because you're positive. You can't change them, because they don't want to be changed. So stop trying. Instead, take a look at what resonates with the people who do like what you have to offer, and give them even more of it! Whether you're a brand, a speaker, a writer, or a clerk at the neighborhood dry cleaners, you're helping some people with some thing - or else they wouldn't be giving you their business, would they? So give them more. Do it well enough, and those very people - the ones who used to like you, and who now adore you - those people will help you by telling their friends. Friends who also want what it is you do better than anyone. Friends who need you.

No one ever won an Academy Award for Best Critic.

Try to keep that in mind next time a snarky co-worker tries to tear down your presentation. How was their presentation? Didn't make one? Oh. I thought so.


* If that looks like Vanilla + vilify, you're not as dumb as you look. ;)

Monday, March 21, 2011

You Can Run, But You Can't Hide

Recently, something on Twitter got my spider senses tingling.

When I "meet" someone interesting in a chat or through a friend, I like to check their bio - I'm sure you do as well. And what caught my attention was how many of these people are former employees of a certain company.

Interesting. It told me two things right off the bat. One, this company hires talented people. Two, talented people leave this company in droves.

Curious, I reached out to one of these people, a friendly acquaintance who is close Twitter friends with one of my best buds on Twitter. We had a connection through past interactions, and we had a level of trust through our mutual pal. In other words, I wasn't a complete stranger.

"I've noticed something I think you can help me with," I tweeted. "Can we take this to email so I can ask you a question?" He was happy to oblige, so via email I asked him about my observation. This is the gist of his reply:

"That company is a great place to make a name for yourself in our field. Unfortunately, they don't pay well, and management isn't the most enlightened. The nature of the work we were required to do there has changed dramatically since they hired me, too. By the time I left, we were innovating much less, instead spending most of our time on lower-skill tasks. I'm glad I've moved on, and I've never looked back. Same goes for my former colleagues." He named several I also followed, and I reached out to them as well for confirmation, which they readily gave.

I've read a lot of headlines about people losing their jobs because of boss-bashing Facebook posts or indiscreet Tweets. Less sensational, perhaps, is how potential recruits and customers use Social to check before they leap. But it happens every day all day long.

I personally don't choose a movie or buy technology without polling my network first. Of my friends and followers, I've got dozens or sometimes hundreds who will weigh in on anything I'm asking about. Often their replies include really useful links to blog posts, reviews, and articles that make my decision easy and shed new light on the object of my question. Increasingly, this is how it's done in the Twenty-First Century.

Employers, people are checking up on you. Once upon a time (you know, 5 years ago), people would ask a small circle of friends and family before trusting a recruiter and taking the career plunge. Now, that inner circle has expanded to thousands, and through connections it can quickly reach tens or even hundreds of thousands. Because of Social Media, no company can hide behind obscurity any longer.

And this is only the beginning. There are new Social applications, and new uses of existing apps, that haven't even been created yet. Two years from now ...three ...five? What I write about today will be so ubiquitous that companies will have no choice but to actually be better - or suffer the consequences.

Social Media isn't just changing the way business is done for those few of us who participate in robust online networks. It is driving a sea change in corporate transparency. Bad bosses? You can run, but you can't hide.


Join me here every Monday for a new installment of Social Media Monday.

Thursday, March 17, 2011

Recruiting Starts at Home

CEOs: want to recruit top talent? Start by wooing the talent you already have.

Sectors of the economy are heating up, especially technology. That means companies are hiring - a number of them quite aggressively. And whenever there is a hiring blitz going on, recruiters feel the pressure to fill interview slots with bodies. The thing is, savvy hiring managers will pass on any but the most talented recruits, which just brings more pressure: for the recruiter, for the manager with the empty job opening, and for you, the CEO, who wants his company to grow as quickly as the market will allow.

Wow, that's a lot of pressure all around, isn't it? All completely unnecessary.

Right now, I'm observing companies devoting thousands of work hours devising new plans to attract more talent: reaching out via social media, professional organizations, alumni associations, friends and family... paying hefty referral bonuses, flying recruits in from all over the country and the world, offering signing bonuses in some cases - it's remarkable to me.

Just this week, I was speaking to a very talented performer at one such company. And you know what he said about his employer? I kid you not:

"This job is better than waiting tables."

This guy is a knowledge worker, mind you. An expert in his field.

CEO, he was speaking to you! His company is hiring vigorously. He is a top performer in his role, not some slouch. Meanwhile, he's itching to leave - he'll be gone soon, and it's all because his company squelched his enthusiasm somewhere (probably repeatedly) between the hiring road show they put on for him and the reality of the present day.

I'm not going to name corporate names because, well, it doesn't matter. Maybe that's your company. More likely it's some other firm. But even if it is, how confident are you that some of your biggest stars aren't saying this about your company right now?

If you want your company to grow in a sustainable way, stop going after talent - make them come after you! It isn't easy, not at all. But it's painfully, excruciatingly simple. Ready?

In order to attract top talent to your organization, make sure the talent you have is so happy and proud they would never dream of leaving!

Employees who love their company* and who are proud to work there are more productive. They are more loyal. They are much less likely to ever leave - not even when a plum offer comes along from a rival.

For years, I've taught business leaders this basic principle of five-star customer service:

Don't bother to pull customers in your front door if their experience is so bad they're just going to walk out the rear in disgust.

Pulling them in the front: for new customers, that's the sales process and advertising and other marketing activities. In hiring, that's your referral bonuses, job fairs, and headhunter fees. Save some cash. Focus on the experience of those within your company. CEOs, ask yourself:

1. How does every employee feel about our company?

2. How do I know for sure?

3. For those who love it: why?

4. For those who don't love it: why not?

5. What do they suggest we do to improve?

Let me leave you with words from another highly-talented worker, this one who works for one of Fortune's 100 Best Companies to Work For.

"I love this company. I'm never going to work for another company again. I'm finally home here."

Are your tops stars finally home? CEO, it's entirely up to you - and the top talent you have on your staff. Go for it! Build a talent magnet!

*Yes, I said love, not "like" or even "like a lot." Only Five-Star employers, that special top one percent, count in this race to the top.

Monday, March 14, 2011

The Three Roles of Social in the Enterprise

Welcome to this week's installment of Social Media Monday!

I've been researching the state of the field of social media within the enterprise (the largest companies) for about two years now. My first note: it's a constantly moving target. Where we are today, where we were just one year ago, and where we'll be in early 2012 are entirely different animals. If you want something established, Social Media is not for you.

If you want new and exciting, you've come to the right place.

As promised Saturday and again yesterday, here is a little about the three roles of Social within the largest organizations. I can't stress enough, results vary tremendously by company. Note: annual pay is an average within the US.

Social Media Community Manager. Pay: $50k. This is not a management position per se, but the term "community manager" is prevalent to describe one of perhaps several official tweeters for the company. This position is as likely to fall under customer service as under marketing. Think of this role as strictly tactical/reactive, although many community managers are earning their stripes by taking it upon themselves to think and act more strategically.

Social Media Leader. Pay $90-120k. Typically, this is the leader of the social media team within the enterprise. Management sees this, again, as a tactical/reactive position - when old-school executives decide their company needs to "get social" in order to keep up with the market, often a manager is appointed and given a small team and a smaller budget to "make it happen."

Some notes: Of the three positions I've researched, this one is the least settled. 1. Where does this leader fall on the org chart? 2. What prior role did they play within the company? Often they're hired from the outside; job descriptions I've read for this look like a train wreck, as the person tasked with creating the description may know little about Social beyond their own Facebook dabbling. 3. What should they be tasked with once they're hired? 4. Do they have any say in the formation or updating of the company's Social Media policy? 5. Are they de facto Strategist, or do they report to an official SM Strategist? 6. How will the company know when they are doing well? For many organizations, it helps to think of this role as a stew that as yet has no recipe.

Social Media Strategist. Pay $150k (up to $250k). There are two ways this position can go: actual expert in charge of crafting and implementing a well-constructed strategy, or help desk manager. Results vary accordingly.

Companies with a Social Strategist may bury this quasi-executive in the org chart, or - still rarely, but increasingly - they can elevate the Strategist as high as a direct report to the CEO (thus the pay discrepancy). It is important to note two things: 1. Most SM Strategists still report to marketing, and only about half directly to the CMO. 2. Most companies I've seen with a SM Strategist who reports to the CEO or at least who stands independent of the marketing department do so because the company has an image problem it is trying to "fix."


I can't stress this enough: this is a blog post. It is cursory at best. Yes, I've collected a tremendous amount of data over the past two years, most notably over the last eight months as I've started my deep-dive into all things Social. If you read this and think you're an expert on Social now... oh, boy.

What are your observations? Better yet, for those of you who are Social Media Strategists or practitioners, what is your own experience? I read every comment carefully, and I often learn from what my readers share. I'm eager to hear from you!

Sunday, March 13, 2011

The Most Inane Question in Recruiting

Recruiters: you live this scenario every day. Your company needs to fill a position, so it's your task to find talent and start that conversation.

Compensation is a key part of the equation. You and the recruit will skirt the topic for a while, most likely, but sooner or later you have to see if the pay fits the candidate. If yes, you can continue; if not, you'll each keep looking.*

To get a handle on appropriate pay, there are two gauges that make sense to me:

1. How much do other companies pay for this type of worker? If you're smart you'll offer better.*

2. How much is this individual worth to our company? This one makes me think of somewhat-unique skills, like a particular inventor or a specific "rainmaker" sales pro or a thought-leader in some new field, perhaps Social Media.

Now, here's one that is a pretty standard question in recruiting, and it floors me every time I hear it:

3. How much did the candidate make last year?

What? I honestly, literally don't get that question. I wish I were exaggerating! You want someone to change roles, maybe within your company, maybe from outside. Either way, you can be pretty sure they are concentrating on two key issues among many: "1. How much can I get elsewhere?" and "2. How much am I worth the hiring company?"

Of course there will be mitigating considerations - of course! There always are. Perhaps they hate their current position, so anything else is looking good right now, even for the same pay, maybe even for less. That's entirely possible. After all, as I said at the beginning of this post, pay is a threshold issue only - there are other factors to consider. Perhaps your company or this new business unit has a really desirable culture, one the candidate is willing to make compromises to join. Perhaps the hours or the work-location or the benefits will be better, or some other issue will trump pay. I would never tell you that pay is the beginning and the end of what matters at work.

But I will tell you it's the beginning. Because if you fail this one, recruiter, the conversation stops.

For about eight months now, I've been researching the pay and job specifications of the various Social Media roles within the enterprise. I've read and/or consulted with all the experts I could identify, I've done my own exhaustive research, and I feel I have this one down pat. It's a hot field that is only going to get hotter, which means true leaders will be able to charge a premium for their services - think code-writers during the dot-com boom, only much more so within the next three years. But this isn't just about Social. It's about making sense.

So recruiters, here is my advice to you: for the rest of your career, never ask question #3 again. I've been immersed in business for a long time now, and I've never heard a less germane question in my life.

Join me here tomorrow, when I share the results of my research on "The Three Roles of Social Media Within the Enterprise."


*I've written extensively about how pay = respect, as in "How much does this company respect me as an employee?" Pay is a threshold issue, meaning if the match isn't right, the conversation will stop at the doorway to your company, and you won't get the candidate inside. Jack Welsh chose GE over IBM because GE offered him more money out of school. Yes, it's important.

Saturday, March 12, 2011

Want to Win at Work? STOP WORKING!

A big part of my ongoing self-education over the past couple of years is to learn every possible thing there is to know about Social Media as used by the largest companies ("the enterprise"). My goal is to position myself as the undisputed leader on the topic. I’ve got some stiff competition (many of them friends), so I never rest: I’m up at five seven days a week reading, blogging, and exploring various Social websites. Throughout the day I keep it up on my phone as I walk to the bathroom or refill my coffee cup. Red lights are a great place to fire off one quick tweet or read a paragraph on a cool new blog I’ve found. And I’ve spoken with hundreds of other experts and professional in the field - more legitimate experts than you probably realize exist.

Obsessed? I suppose. But was Michael Jordan obsessed with nailing the perfect three-pointer? If it’s fun, it doesn’t seem like work.

If you want to win, stop working. Play at something that truly delights you, then figure out how it can turn you a dime. Just don’t forget: the play comes first, or never mind.*

I say all this because I want you to truly value the extensive effort I’ve put into my research. I’m not just some dude with an opinion or two – though Lord knows, I’ve got some pretty strong opinions, and I’m not shy of sharing them. But they aren’t merely conjecture. What I tell you about the Social Revolution is based on the current state of the media, and on the undeniable trends my peers and I see coming.

This is an exciting time to be alive if you’re a technologist; in my opinion, the most exciting time that has ever been. The Social Revolution is going to make the dot-com surge (and burst) look like a blip. We’ll dive into that more another day.

Excited? I’ll see you back here Monday, when I post “The Three Roles of Social Within the Enterprise.”


*****

*Case in point: four sentences ago a lady all dressed in green, with a sparkly green antennae headband, caught my eye and said, “You can’t leave your work?” She asked that because it’s an hour before St. Patrick’s Day Parade starts here in Naples. I’m sitting like an expectant hen over my family’s chairs while they finish up breakfast with the Grandmas and come join me. I’m on my MacBook, typing away in the cool March shade. “Work?” I replied. “I haven’t worked in years! This is fun.” And it is!

Wednesday, March 9, 2011

The Law of the Umbrella

A lot of the focus of this blog is advice for CEOs - present and aspiring - on how to transition their firms from 20th-Century organizations to 21st. But the Law of the Umbrella dictates that what is good for the organization as a whole will also work for any team within that org.

Leaders: anywhere you find yourself in the corporate pyramid, you can act as an umbrella for your team. If your company has an unhealthy culture, think of that as rain falling down on your people from above. You can take steps to protect your staff from much of that unpleasantness - not all of it, of course, but you can deflect a lot.

Unfortunately, the opposite is also completely true. Every company, no matter how healthy and wonderful as a whole, has backwaters run by jerks. The umbrella is also in effect here: the healthy culture is still the rain in this case, and the boss opens himself to keep that sustaining moisture from his team.

I don't think we need to spend a lot of time on that last scenario. We've all suffered under tyrannical bosses, and it doesn't take a genius to list their tricks.

So back to the image of umbrella as protector against a harsh climate. Say you're a boss, and your company is... less than perfect. Maybe it's "fine," but you know full well that "fine" never inspired an ounce of loyalty. "Fine" never attracted top talent - at least not reliably - and it certainly never kept that talent on board for very long.

That's why, as leader, all you care about is building a team that is great. Here's how to be that umbrella for your people.

1. Explain your expectations of them clearly and unequivocally. Whole books have been written on this. Suffice it to say, winners want to know how to win. Tell them that. They'll go out and make the rest happen.

2. Spend 90% of your time grooming your winners. Learn from them. Think of your time as a reward that their success has earned.

3. Sort winners from losers quickly. Don't delay that pain. You can't turn a weed into an oak tree, no matter how nurturing you are to that weed. And the experience will be painful for that weed, so you aren't even being nice, at least not in the long run.

4. Explain to your winners how much you admire them. Don't assume they know. Also don't be fawning about it. Just state your appreciation, frequently and specifically, for the things they're doing right. Recognize them publicly and in talks with your peers and those up the ladder (this will get back to them, and they'll love you for it!)

5. Act on this guiding principle: "My job is to make your job easier." In other words, facilitate their success. Your role, whether you realized it or not, is to take the junk away from your team so they can focus on what matters. In an unhealthy organization, a lot of that junk comes in the form of bureaucratic nonsense - hoop jumping, paperwork, senseless meetings that take your staff out of productivity. Keep your people focused on what matters, what pays the company's bills. Be a servant leader.

6. Facilitate their success. If they truly are stars, there's a fair chance they'll have ambitions beyond their current role - not necessarily, because we're all looking for different things from our work. But quite often this will be the case. A talented leader understands when she has a winner, and supports that winner's move to the next challenge. Be a champion, not an impediment.

I've only scratched the surface on The Law of the Umbrella, but I hope this is helpful. Your comments, as always, are more than welcome: they're essential to me, and to my readers. Please, tell us what you think.

*****

This post is dedicated to the best manager of my career, C.L. Indeed, she taught me the bulk of this post through her own example.

Thursday, March 3, 2011

Hitting Your Number & Other Folly

If you haven't read The Wisdom of Crowds, by James Surowiecki, you owe yourself the treat. It's fascinating. The main premise is to show how our collective wisdom just plain crushes the expertise of even the highest-paid gurus, at least over the long-haul.

Surowiecki also explores a number of side-issues, and he does it in the engaging style of the journalist-author, reminiscent of another of my favorites, Malcolm Gladwell, author ofTipping Point and Outliers.

It's down one of these thought-alleyways I'd like to take you now. Surowiecki touched on something that has been eating at me for a while. Perhaps it bugs you as well - or if it didn't before, I hope it starts to. He writes,

"Companies tend to pay people based on whether they do what they're expected to do. In a market, people get paid based simply on what they do. After all, your local deli owner doesn't make any more money if his sales at year end beat his own expectations. He just makes as much money as he makes. Ideally, the same would be true inside a company."

I founded my own company, and I owned all the stock: typical of many SMBs. That means when we made a sale, I got to keep every dime of the money left over after we'd paid all the bills - just like that hypothetical deli owner. Granted, I paid myself meagerly and invested heavily back into the business, but I was investing profits: some entrepreneurs buy boats and beach homes; I bought staff salaries and a cutting-edge website.

The experience has left an indelible mark on how I think about business, large and small. It kills me when companies play games with money, or with motivation, as if incenting people for desired behavior rather than results makes any kind of sense. As if paying people the same for disparate performance in the same role is anything but... um... dumb.

Many roles in business support the organization and thus are hard to measure in direct impact to the bottom line. I get that, and I respect it. But here's one that has never made a lick of sense to me: when two people perform the same role, but one outshines the other - in terms of measurable dollar-in-revenue amounts - and yet is paid the same, or close to it.

Take innovation. One of your research teams invents your company's version of the sticky pad (3M) or the iPad (Apple). That breakthrough becomes a major part of your firm's revenue for years to come. To my mind, as that deli owner, this team is one hell of a lot more valuable to the company than the other teams. Perhaps they deserve a pass on their annual reviews for the rest of their careers. Just sayin'.

Or the IT professional who guides his firm away from an unhealthy relationship with an under-performing vendor, and ends up saving her company not only millions of dollars a year with a new vendor, but also headache and "fit" issues that might be a lot harder to measure objectively. Has this pro earned some job security? A bonus? A promotion? It's remarkable to me how often that type of recognition doesn't happen. What would the deli owner say?

And here's my favorite: I saved it for last on purpose. Look at how you pay and manage your sales professionals. Every year, sales pros are given their "number," the target they need to hit in order to stay employed. They beat their number, they earn commissions, bonuses, gifts, vacations... They miss it, they're in trouble. Maybe even sacked.

Now, so far so good; fair's fair you say, and I agree. But anyone involved in sales knows, what most companies do is say, "Okay Bob, last year you sold $X, so we know you can do better next year. Jan, last year you sold half of $X, so you have to beat half of $X next year."

Over my career, I have known plenty of sales pros and team managers at a variety of companies that have been in a situation like this: Bob sells twice, three times, four times as much as Jan, but he misses his number and she exceeds hers. Jan is a heroine, and Bob is in trouble - yes, perhaps even fired for under-performance.

Really? Really. This may make sense according to the conventional wisdom of enterprises around the world, but I wonder... What would the deli owner think of that? One waitress handles four times the number of tables, brings in four times the sales, of her coworkers: isn't she worth more? Isn't she the very last to lose her job? My God, most sensible business owners would marry her in order to keep that money in the family!

In my humble opinion,* perhaps CEOs and boards of directors can learn a thing or two from the humble deli owner. Perhaps hitting one's number should be less important than, say, bringing a company actual profits.


*Okay, I admit, my opinion is only occasionally humble. I'd say sorry, but I'm not.

Tuesday, March 1, 2011

4 New Rules for 21st Century Leaders

Tuesday is guest blogger day, and today I have the honor of hosting Shawn Murphy.

Shawn is the founder and President of Achieved Strategies. Achieved Strategies is a organizational change and transformation firm that helps organizations weave together people, technology, and process and business to achieve results. Shawn is an unabashed supporter of the belief that "the business of business is people." He blogs weekly at www.achievedstrategies.com/blog. He also tweets at@shawmu. You can also contact Shawn at info@achievedstrategies or calling 888.361.5181.

Ted Coiné is a kindred spirit. We both are impassioned by the opportunity to spread the beliefs, words, and behaviors of 21st Century leaders. We see a shift away from arrogant, self-indulgent, controlling, and self-centered leaders driving businesses. Yes these leaders exist today in major corporations, in politics, in small businesses, and in our community. Slowly, however, these leaders will become irrelevant as humanity is added back into how organizations partner with employees, and emerging community-focused and driven companies become more the norm.

The 21st Century Leaders are learning from the power of social technology and the way it unites people. They are observing, taking note on what NOT to do when the company finds itself in a PR nightmare. They are learning to speak the truth when called to do so, take the resulting lumps, and move forward. These are but a few of the influences on Generation Y current and future-leaders, Gen X and even Boomer leaders.

People are more connected than ever before. They want to be heard. They want to make a difference. This is a powerful influence on leadership. The observant leader will find new ways to invite people to make a difference. In the context of business, 21st Century Leaders know how to invite people to contribute at work.

Inviting employees to contribute in the changed workplace will need a new set of “rules.” The header on Ted’s blog states, “Welcome to the new rule book.” Here are some new rules to put in your rulebook.

Transparent intentions. We’ve grown disgusted by CEOs, other executives, and politicians’ inability to speak the truth. From infidelity to corruption, we all want to hear the scandalized speak the truth, to fess up to and own their mistakes. We want to see what they’ve learned. Until then, we’re skeptical of their intentions, of their words.

For 21st Century Leaders, they know to “own” the outcomes of their decisions. And they speak openly, in public with their people, about difficult decisions and about their potential impacts. People can handle the truth. It’s time to start talking about how company’s can move forward from the tough decisions made over the past three years.

Embrace the virtual workplace. With the cloud growing in importance, and mobile technology abundantly available, leaders will allow work to occur anywhere. Why not allow people to work wherever and whenever. Employee isn’t the only role people fill in their life. Work and personal life will be better integrated to bring greater satisfaction in both worlds. It means quality and efficiencies are to be gained. The 21st Century Leader embraces the virtual workplace because successes aren’t achieved between 9-5.

Employees are first. The axiom “customers are always right” is turned on its head by leaders of the 21st Century. It’s about employees first. They get that when employees are heard, encouraged to “leave their fingerprint” on the organization’s offerings, and invited to transform the company, customers are taken care of. It’s an outcome of focusing on employees. There’s no relevance for the old saying about customers coming first. It’s a moot point. Why does this work? It’s because there is a clear purpose and meaning in the work.

Create meaning at work. It’s human nature to want to make a difference. Leaders understand that human need and find ways to maximize it. 21st Century Leaders mobilize their people to invent/improve better services and products. They encourage cross-collaboration across the organization. They allow employees to interact with customers to improve the company’s products and services. This new’ish leadership approach weaves the company’s values, mission, and vision in interactions with others. This type of leader wants to help employees succeed. When meaning is present at work, conversations about profitability become easier. Why? Because employees see how what they do impacts the success of the company.

These four rules are merely the tip of the iceberg for 21st Century leaders. The social, technical, economical, and political changes are in hyper-drive and changing how people relate to one another. And since leadership is about relating and helping people, your style of leadership must, too, change. Inspired leadership is influenced by the surrounding environment. It cannot exist in a vacuum. Today and future leaders see how their leadership and the environment are interconnected, evolving together. This is the 21st Century Leader.