Right Attitudes » Ideas for Impact
» by Nagesh Belludi

The term ‘fired’ is a colloquial expression for dismissing a person from employment. It became more popular owing to the NBC reality show ‘The Apprentice’ where the host, businessman Donald Trump, eliminates contestants for a high-level management job by “firing” them successively. Indeed, in 2004, Donald Trump filed a trademark application for the catchphrase “You’re fired!”

Some sources suggest that the term may have originated from the expression “fire a gun” as in “discharge a gun.” However, legend has it that the term originated in the 1910s at the National Cash Register (NCR) Company.

NCR founder John Henry Patterson (1844–1922) is widely recognized as the pioneer of sales management and for developing formal methods for training and assessing salespersons. Nevertheless, Patterson, for all his genius, was quirky. He was obsessed with total control of everything around him. He imposed his personal values on employees. As a food and fitness fanatic, he had employees weighed every six months. He often dismissed employees for trivial reasons just to break their self-confidence and recruited them back soon after.

John Patterson’s employees and customers branded him abusive and confrontational. Patterson once dismissed an executive by asking him to visit a customer. When the executive drove back to NCR headquarters, he observed his desk tossed out into the lawn. Right on time, his desk burst out into flames. He was “fired.”

Thomas Watson Sr. was “fired” by NCR

Famously, NCR’s star sales executive Thomas Watson Sr. met a similar fate. In 1914, Watson argued that NCR’s dominant product, mechanical cash registers, would soon go obsolete. He proposed that NCR develop electric cash registers. Peterson resisted the idea. He demanded that Watson focus on nothing but sales and not worry about innovation. Following an argument at a meeting, Patterson dismissed Watson. In a fit of anger, Patterson had workers carry Watson’s desk outside and had it lit on fire. Thomas Watson Sr. was thus “fired.” Thomas Watson Sr. then joined a smaller competitor, Computing-Tabulating-Recording Company (C-T-R,) which soon grew into International Business Machines (IBM.) Thomas Watson Sr. led IBM for forty years and turned IBM into the world’s leading technology company.

Suggested Reading

• More Folklore: Mahatma Gandhi on being the change you wish to see
• Warren Buffett’s ‘Newspaper Test’ on Personal Integrity
• Are you ready for a promotion?
• Four telltale signs of an unhappy employee
• Jack Welch’s four types of managers

***See other articles related to business legends, folklore, anecdotes, employee termination, leaders and bosses, NCR, IBM

“Walton Ten-Foot Rule”

Sam Walton, Wal-Mart’s iconic founder and perhaps the most successful entrepreneur of his generation, showed considerable charisma, ambition, and drive from a very young age.

Sam was a committed student leader when he attended the University of Missouri, Columbia. One of the secrets to his reputation at college was that he would greet and speak to everybody he came across on the campus. And, he would address them by their name if he knew them. In a short time, he set off to make many friends and became well-liked. Small wonder, then, that Sam triumphed in nearly all the student elections he contested.

When Wal-Mart became sizeable enough, Sam realized that Wal-Mart could not just yet offer its customers lower prices than the other retail giants could. As part of his customer service strategy, he institutionalized the very trait that had helped him become popular when he was a student. He insisted on the “Walton Ten-Foot Rule.” According to the rule, when Wal-Mart associates (as Wal-Mart calls its employees) came within ten feet of customers, they were to smile, make eye contact, greet the customer, and offer assistance. As Wal-Mart grew, Sam added greeters who would greet customers at the door (and control ’shrinkage’/shoplifting.) Even today, the Ten-Foot Rule continues to be part of the Wal-Mart culture.

Likeability — A Predictor to Success

Likeability is an important predictor to success in life. Some people seem naturally endowed with appealing personalities. They tend to complement their aptitudes by being personable and graceful, by presenting themselves well, and by possessing the social skills for every occasion. They tend to win others over effortlessly. At school and college, they are their teachers’ favorites and get chosen by their peers to represent their classes. They get invited to the right kind of parties and gatherings, and live the life of these parties. At work, they are persuasive; they get noticed and quickly climb the corporate ladder.

From my observations of the traits of the talented and successful, I offer you a few reminders to help you become more personable, develop rapport, and thus maximize your chance of success.

• Look people in their eyes. Smile. Greet them by their names.
• Listen. Speak with a pleasant tone of voice. Speak in a positive manner. Show respect. Indeed, even your adversaries have some admirable characteristics.
• Show genuine interest in others. Try to build a rapport by sharing something about yourself with them.
• Say “Please,” “Sorry,” and “Thank you.” Offer a kind word. Compliment them. Do not flatter.
• Consider the other’s perspectives and perceive his/her circumstances before disagreeing.
• Practice compassion. Make a sincere effort to help others.
• Do not overdo any of the above. Try your best. Do not please others at the expense of your own sanity — stay true to your values, principles, and happiness.

Recommended Reading

• What the deaf can teach us about listening
• How to overcome shyness in initiating conversations
• Keeping good eye contact
• Overcoming the temptation to please
• The power of genuine interest in others

***See other articles related to customer service, likeability, charisma, popularity, personality development, self-confidence, inter-personal relationships

Last week, General Electric (GE) announced that its Board of Directors had accepted CEO Jeffrey Immelt’s recommendation that he not receive his bonus for 2008 and $11.7 million in compensation under a long-term incentive plan.

In 2008, GE’s missed its profits estimates and the company’s stock declined significantly. Still, GE reported the highest revenues in its history, a profit margin of 9.59%, and a net income of $17.4 billion. Jeff Immelt could have claimed his 2008 bonus and the long-term compensation he deserved for the company’s performance between 2006 and 2008.

Additionally, he held more than 1.6 million shares in the company. The value of his GE stock has depreciated by more than $45 million since 2-Jan-2008. (GE’s stock price declined from $37.10 to $8.60 between 2-Jan-2008 and 27-Feb-2009.)

Over the last several years, the world of business has experienced a public uproar over executive compensation. This has led to a perception that corporate executives are greedy, resent shareholders’ proposals to cap compensation, and focus on short-term results. Considering this bitterness, Jeff Immelt’s initiative in turning down a substantial portion of his compensation is certainly praiseworthy and admirable.

In an interview with The Wall Street Journal earlier this month, Jeff had stated, “My compensation is never going to be an embarrassment to GE. … It’s going to be responsible; it’s going to be appropriate; it’s going to be transparent; and it’s going to reflect the financial performance of the company.”

GE has long been a model for corporate governance. Since taking over as CEO four days before the 9/11 tragedy, Jeff Immelt and the company’s board have aligned executive compensation with long-term company performance, converted over to equity-based compensation plans, stipulated that executives hold large proportions of GE stock, and committed to greater transparency and disclosure.

I shall share my thoughts on executive compensation in a separate blog article tomorrow. [Update on 1-Mar-09: Release of this article postponed due to its sensitive nature.]

Recommended Reading

• Jeff Immelt on understanding breadth, depth and context
• Jack Welch’s four types of managers

***See other articles related to executive compensation, corporate governance, Jeffrey Immelt, Jack Welch, General Electric

Yesterday was the first anniversary of the death of Peter Ferdinand Drucker, “the father of modern management.”

Drucker is arguably the most influential management philosopher of the modern era. He is the author of about forty books and innumerable essays on managerial skills, management concepts and social analyses. As a consultant, author and speaker for over sixty years, Drucker influenced the thinking of many executives in businesses, not-for-profits and faith-based organizations. Read his detailed biographies here, here and here.

Drucker wrote about many concepts and practices decades before the trends were discernable: knowledge workers, empowering employees, decentralization, management by objectives, focus on results instead of actions, the responsibility of the corporation in society, knowledge-based society, rise of multinational businesses, etc.

Drucker’s writings are devoid of buzzwords and management jargon and easily resonate with his readers. Today, we accept Drucker’s thoughts as conventional wisdom. Consequently, scores of business school courses require reading of his books.

My first exposure to Drucker’s thoughts was when I read his manual “The Effective Executive” during my undergraduate studies. Over the last few years, I have read and re-read many of his books and essays. Drucker’s unique style of expression and simple, clear language have left a deep impression on my pursuits, thoughts and actions. Below is one of my favorite Peter Drucker instructions. See my separate blog post on his inspirational quotations.

Successful leaders don’t start out asking, “What do I want to do?” They ask, “What needs to be done?” Then they ask, “Of those things that would make a difference, which are right for me?” They don’t tackle things they aren’t good at.

On a question about his legacy, Drucker once said that he has “helped a few good people be effective in doing the right things.” Just a few? Drucker’s farsighted insights and timeless thoughts will influence management thought for generations to come.

*Keyword(s): Peter Drucker, management theory, managerial skills, management concepts

Mr. N R Narayana Murthy, executive chairman of Bangalore-based Infosys Technologies, retired today on his sixtieth birthday. He was one of the six founders who started Infosys [INFY] with a small investment of Rs. 10,000 and nurtured the organization to a world-class company currently valued at Rs. 50,000 crores ($10.75 billion).

Caption: A shareholder describes Infosys’ achievements at a Shareholders’ Meeting in Bangalore (Dec ‘04)

Globally, Mr. Murthy is a widely-admired business leader. Much has been written about his background, discipline and his ’simple living, high thinking’ philosophy. His biggest legacy will be the dreams and confidence his company’s success has fostered in a whole generation of middle-class India. In creating a highly respected, world-class company that provides top quality services and adopts best management practices from around the world (a strong corporate brand, transparency in operations and financial reporting, sharing wealth, best training practices,) his team has offered a blue-print for entrepreneurial success in the new economy.

Mr. Murthy will transit into the role of a non-executive chairman at Infosys. His retirement will enable him to expand his endeavors with various institutions, viz., administrative (India, Thailand, United Nations Foundation), financial (RBI, DBS, SEBI), educational (IIM-A, IIIT, Cornell, Wharton, Singapore Management University) and corporate (NDTV, TiE). He is widely rumored to be nominated to the role of the President of India. He has himself expressed an interest in being designated the Ambassador of India to the United States. We should hope to continue hearing his ideas on various fronts. He may author a book or two on management practices in the global economy or the story of Infosys.

Congratulations on your retirement, Mr. Murthy.

*Keyword(s): Narayana Murthy, Infosys