Never Criticize Little, Trivial Faults

Lessons from the Renowned People Skills of Steel Tycoons Charles M Schwab and Andrew Carnegie

The American steel magnate Charles M Schwab (1862–1939,) was a protege of the steel baron-turned-philanthropist Andrew Carnegie (1835–1919.) During the course of a long and successful career, Schwab built his Bethlehem Steel Corporation into America’s second largest steel producer and one of the world’s most prominent businesses.

'Be hearty in approbation and lavish in your praise' - Lessons from the Renowned People Skills of Steel Tycoon Charles M Schwab

Don’t be “bothered with the finicky little things that trouble so many people.”

Charles M Schwab started his career as a laborer in Andrew Carnegie’s Edgar Thomson Steel Works. Thanks to his exceptional ability to cozy up to people and facilitate congenial working relationships, Schwab rapidly rose up the ranks of the Carnegie steel empire.

By the age of 19, Schwab was assistant manager of the steel factory. When an accident killed the factory superintendent in 1887, Andrew Carnegie appointed the 25-year-old Schwab as the manager of the Thomson Works. At 35, Schwab became president of the Carnegie Steel Company at an annual compensation exceeding $1 million (worth $30 million today.)

In an essay titled “My 20,000 Partners” in the 19-Dec-1916 issue of The American Magazine, Schwab shared a management lesson he learned from his mentor Andrew Carnegie:

Mr. Carnegie’s personality would enthuse anybody who worked for him. He had the broad views of a really big man. He was not bothered with the finicky little things that trouble so many people. When he made me manager, Mr. Carnegie said, “Now, boy, you will see a good many things which you mustn’t notice. Don’t blame your men for little, trivial faults. If you do you will dishearten them.

When I want to find fault with my men I say nothing when I go through their departments. If I were satisfied I would praise them. My silence hurts them more than anything else in the world, and it doesn’t give offense. It makes them think and work harder. Many men fail because they do not see the importance of being kind and courteous to the men under them. Kindness to everybody always pays for itself. And, besides, it is a pleasure to be kind. I have seen men lose important positions, or their reputations—which are more important than any position—by little careless discourtesies to men whom they did not think it was worthwhile to be kind to.

'Don't blame your men for little, trivial faults' - Lessons from the Renowned People Skills of Steel Tycoon Andrew Carnegie

“Be hearty in approbation and lavish in your praise”

Schwab’s excellent people skills and management methods are extolled in How to Win Friends & Influence People, Dale Carnegie‘s masterful guidebook on people skills. Dale Carnegie quotes Schwab:

I consider my ability to arouse enthusiasm among my people, the greatest asset I possess, and the way to develop the best that is in a person is by appreciation and encouragement.

There is nothing else that so kills the ambitions of a person as criticisms from superiors.I never criticize any-one. I believe in giving a person incentive to work. So I am anxious to praise but loath to find fault. If I like anything, I am hearty in my approbation and lavish in my praise.

I have yet to find the person, however great or exalted his station, who did not do better work and put forth greater effort under a spirit of approval than he would ever do under a spirit of criticism.

Idea for Impact: People who cannot tolerate others’ shortcomings are at a marked disadvantage in life.

'How to Win Friends & Influence People' by Dale Carnegie (ISBN 0671027034) The older you’ll get, the more you’ll appreciate the wisdom of enduring the negative emotions— skepticism, disapproval, anger, contempt, and hostility—that stem from others’ behaviors.

One of the keys to effective interpersonal skills is to know when and how to give feedback. Commend whenever you can, criticize when you absolutely must.

Remember, criticism can swiftly erode away positive feelings. Don’t nit-pick. Don’t get caught up in trivial peculiarities.

Book Summary of Peter Drucker’s “The Practice of Management”

Peter Drucker (1909–2005) was the 20th century’s leading thinker on business and management. He was amazingly prolific—he produced 39 volumes on management and leadership and worked right until his death a week before his 96th birthday.

'The Practice of Management' by Peter Drucker (ISBN 0060878975) Drucker’s The Practice of Management (1954) played a pivotal role in the recognition of management as a professional discipline. Even six decades after publication, The Practice of Management remains relevant for its original, profound, and timeless ideas. Drucker’s conception for the organization as an integral part of society, his elucidation of the nature of managerial tasks, his emphasis on good governance, and his prescription for effective leadership have served managers well over the decades.

Here are some prominent insights from The Practice of Management:

  • Drucker accentuated the need for clarity about the meaning of a business. He argued, “‘what is our business’ is the most important question successful management groups have to address.” In corporate strategy, this inquiry has become the underpinning for business analysis and the formulation of mission statements.
  • A business exists to “create a customer.” Therefore, managers need to query who their customers are and what the business must try to do for its customers.
  • The Practice of Management contributed to a rich analysis of the role of business in society. Drucker proposed that a business exists at three constructs that influence each other and thus establish the organization’s performance, mission, and business definition:
    1. as an economic establishment that produces value for its stakeholders and for the society,
    2. as a community that employs people, pays them, develops them, and coordinates their efforts to increase productivity,
    3. as a “social institution that is deeply embedded in society and values and as such is affected by public interest discussion, debate, and values.”
  • “The manager is the dynamic, life-giving element in every business” who defines the organization’s mission, develops and retains productive teams, coordinates various activities, sets goals, and gets things done.
  • Leadership gives the organization meaning and purpose—leadership defines and nurtures the organization’s central values, creates a sense of mission, allocates resources, and builds systems and processes in pursuit of the organization’s goals.
  • Management entails farsighted thinking about the future state of things and taking appropriate risks to capitalize on opportunities. Additionally, “managing a business must be a creative rather than adaptive task. The more a management creates economic conditions or changes them rather than passively adapts to them, the more it manages the business.”
  • The Practice of Management by Peter Drucker Managers inculcate the dominant cultural norm in the organization through their actions. These values become evident in the decisions they make concerning whom they recruit, whom they retain and promote, the goals they pursue, and the ethical parameters with which they frame their decisions.
  • The Practice of Management popularized the concept of management by objectives (MBO) for the successful execution of an organization’s strategic plan. The MBO process ensures delineation of key objectives, prudent allocation of resources, dedication of effort on key goals, use of real-time feedback, and effective communication. MBO helps managers organize and motivate their employees, promote effective communication, develop employees, measure performance, and increase their sense of empowerment.

The Practice of Management is one of those books that his admirers tend to appreciate more with every successive reading. Drucker’s remarkable virtues as the “father of modern management”—viz., clarity, usefulness, and common-sense pragmatism—are all on display in this book.

Recommendation: Read—it’s the best book you’ll find on the responsibilities, tasks, and challenges that managers undertake. The Practice of Management will have a profound effect on your thinking.

Seven Real Reasons Employees Disengage and Leave

Root Causes for Employee Disengagement

Engaged employees not only contribute more and enhance bottom-line results but also are more loyal and therefore less likely to leave their organizations voluntarily.

Here are seven widespread root causes for employees’ lack of enthusiasm and commitment to a workplace.

  1. Employees find the job or workplace to be different from what they had expected when hired.
  2. Employees are not well matched or challenged in the jobs to which they have been assigned or promoted.
  3. Employees receive insufficient coaching and feedback from their boss.
  4. Employees recognize few prospects for professional growth and advancement. Alternatively, employees are obliged to log two or three years of unexciting assignments to “pay their dues” before being considered for promotion.
  5. Employee feel undervalued, underpaid, or under-recognized. They don’t get enough informal acknowledgement for their contributions or feel constantly “out of loop.” Their managers don’t seek opinions or supply the right tools to excel at work.
  6. Employees feel stressed or burned-out due to overwork or work-life imbalance.
  7. Employees have lost trust and confidence in their management and leadership.

Idea for Impact: Disengaged employees are more likely to leave their organizations.

How to Handle Upset Customers

Servicing Angry Customers

From an angry customer’s perspective, the impressions left by customer-service providers are long-lasting and can heighten the impact of a service experience, for better or worse.

A failure to recognize and quickly respond to the needs of angry customers can make them feel ignored, frustrated, and powerless. Here are nine guidelines that can result in a constructive interaction with an angry customer and restore his perception of satisfaction and loyalty.

  1. Don’t adopt an angry tone. Stay calm and professional. When an upset customer starts shouting or being foul-mouthed, you’ll gain nothing by reacting in a like manner. Actually, responding to anger with anger can easily escalate the hostilities and thwart meaningful communication. Exercise self-control and regulate your feelings. Without remaining calm, you cannot break through emotional barricades or preempt the customer’s frustrations going from bad to worse.
  2. If the customer is yelling, ask him to speak slower. A louder voice often goes with a faster speech. When the customer slows down his speech, the level of his voice will also drop. Repeat this request as many times as necessary to calm him down.
  3. Declare that you intend to understand the customer’s situation and help. Say, “Could you please speak more slowly. When I understand your situation, I can help you better.”
  4. Let your angry customer vent. When a customer is upset, what you tell him matters less than what you enable him to tell you. The first thing an upset customer wants is to vent. Commonly, just the modest act of listening patiently can defuse the customer’s anger. Only after you facilitate getting the customer’s emotions off his chest can you have a constructive discussion.
  5. Recognize that the customer’s problem does exist. Restate the customer’s analysis of what the problem is. “If I understand you appropriately, you have a problem with X and you don’t like Y. This has caused Z.”
  6. How to Handle Upset CustomersDemonstrate sincere empathy for the customer’s feelings. Say, “I can understand why this situation would upset you. I’m sorry you feel that way.” Your best response to the customer’s anger is empathy.
  7. Ask what the customer would like to do to have the problem solved. Ask, “What can we do to make this right for you?” By shifting the customer’s focus from annoyance to problem solving, you can determine ways to negotiate a satisfactory solution. If the customer’s request cannot be met, provide alternative solutions that may alleviate the situation or placate the customer.
  8. Let common sense prevail over standard operating procedure. Much of current customer service initiatives (especially with outsourced call centers) has devolved into standard operating procedures, carefully formulated decision-trees, and scripted answers that customer service agents dispense mechanically. To an upset customer, these automated responses often seem hollow and inacceptable. Deviate from the canned responses and use good judgment. Exercise the autonomy you’re granted over how you can respond to help solve customer complaints. If necessary, involve your manager.
  9. Don’t need to give a “yes” or a “no” answer on the spot. If the customer asks for more than you’re able to accommodate, defer your answer by saying, “Give me a minute to consider all the options I have for you” or “let me talk to my boss and see how I can help you.” After weighing the pros and cons, give your answer and offer a reason if necessary. This way, even if the customer doesn’t get a “yes” from you, he will still appreciate knowing that you’ve seriously considered his appeals.

Idea for Impact: Body language, phrasing, and tone can have a big impact on angry customers who are on the lookout for evidence of compassion and want to be reassured that they have chosen a good provider for their product or service.

The Cost of Leadership Incivility


Steve Jobs’ Misguided Advice for Being a Good CEO: “Throw Tantrums!”

Indra Nooyi got Advice from Steve Jobs: Throw Tantrums

When Indra Nooyi became CEO of PepsiCo in 2006, she met with Steve Jobs, the famously driven but short-tempered and ruthless leader of Apple. One advice Jobs had for Nooyi on being a good leader: “throw tantrums.”

During this 2016 interview at the Stanford Business School (YouTube video), Nooyi acknowledged Job’s advice as “a valuable lesson.” She elaborated that Jobs advised, “don’t be too nice … when you really don’t get what you want and you really believe that’s the right thing for the company, it’s OK to throw a temper tantrum. Throw things around. People will talk about it, and they’ll know it’s important for you.”

During another 2016 interview, at the New York Times’ DealBook Conference (YouTube video), Nooyi recalled Jobs advise again. “If you really feel strongly about something—if you don’t like something people are doing—throw a temper tantrum. Throw things around, because people have got to know that you feel strongly about it.” Though Nooyi hasn’t gone as far as to throw things around, she disclosed, “I’m beginning to use certain words a little bit more freely and I am screaming a bit more, pounding the table … which is really not the way I was … it is effective. It shows the passion that I have for what I’m doing.”

No Need to Ape the Style of the Icon-of-The-Moment

Leadership Throw TantrumsPeople will go to extraordinary lengths for causes they believe in. Nonetheless, this advice of throwing tantrums and using “certain words a little bit more freely” to express passion is abhorrently misguided, even if it worked for Steve Jobs and Indra Nooyi!

The ultimate impact of a leader hinges on his/her enthusiasm to make the organization’s endeavors personal, to engage others openly, and to draw attention to successes as they emerge. For that reason, Nooyi’s anecdote is demonstrative of Jobs’ passion for building great products.

My primary protestation relates to the reality that leaders model the behavior they want in their organizations. Admissibly, there may be a time and a place to throw temper tantrums at Apple, PepsiCo, or at your organization. However, unchecked and unhindered outbursts of passion, and cursing and incivility are certainly counterproductive.

Steve Jobs could throw temper tantrums because he could! As I have written in previous articles, brilliant men and women can get away with fanatical pride, temper, abuse, and other disruptive behaviors because their spectacular success can and does cover many of their sins, even in the eyes of those at the receiving end of their crudeness.

Aggressive—and successful—managers and leaders can pressurize, scream, intimidate, and even terrorize their employees. They vindicate that their offensive behavior works because they “deliver the numbers.” Others rationalize their behavior by exclaiming, “Yeah, he’s tough on his people, but judge his abrasiveness in the context of everything he’s achieved.”

The Leader Sets the Tone for Workplace Culture

Workplace incivility can take many subtle forms and it is often provoked by thoughtlessness more willingly than by actual malice. A leader’s behavior tells employees what counts—and what’s rewarded and what’s punished. Leaders are role models. Therefore, others pay attention to everything they say and every move they make.

The tone at the top is the foundation upon which the culture of an organization is built. A leader is the face of an organization and the figurehead to whom employees ultimately look for vision, guidance, and leadership. When leaders throw temper tantrums, swear, or engage in appalling behavior, the message they convey within their organizations is that such behavior is acceptable.

The human brain is wired to learn by imitation. For instance, a child is wired to mimic the behaviors of higher status individuals like parents and teachers. Similarly, adults emulate the behaviors of those they deem of higher status—employees look at their boss to determine how to behave in the organization and what it takes to be promoted. In competitive work environments of the modern day, when employees see that those who have climbed the corporate ladder tolerate or embrace uncivil behavior, they’re likely to follow suit.

'Steve Jobs' by Walter Isaacson (ISBN 1501127624) Postscript: Don’t blatantly imitate a hero. Those of you who worship Steve Jobs had better perceive his operative style as an anomaly rather than as a model of leadership worth imitating. Simply lifting his methods from anecdotes such as Indra Nooyi’s and the Walter Isaacson biography and imposing them on your employees will not necessarily yield Jobs-like results. As I’ve written previously, the career advice that works for the superstars is not necessarily what will work for most ordinary folks. So, don’t be misled by their “it worked for me” advice.

Adapt to Your Boss’s Style: Cases from Andy Grove and Steve Ballmer’s Expectations in Meetings

Andy Grove’s Meeting Style at Intel

Andy Grove's Meeting Style at Intel Intel’s former Chairman and CEO Andy Grove (1936–2016) was known for his brash management style. He habitually resorted to fear as a management technique. In an effort to aggressively pursue the right answers, he devoted his focus to facts and data, as I wrote in my article on lessons from the Intel Pentium integer bug disaster.

In meetings, Grove expected his employees to be self-willed, clear-sighted, and obstinate. Grove wrote in his autobiography / management primer Only the Paranoid Survive (1996,) “Don’t sit on the sidelines waiting for senior people to make a decision so that you can later criticize them over a beer.”

With an “in-your-face” interpersonal style, Grove bellicosely challenged his interlocutors and called his meetings “constructive confrontations.” In contrast, his executives recalled them as “Hungarian inquisitions” in reference to his childhood in Hungary under Nazi and Communist regimes.

Recalling Grove’s technique for meetings, one executive said, “If you went into a meeting, you’d better have your data; you’d better have your opinion; and if you can’t defend your opinion, you have no right to be there.” In pursuit of accuracy and rationality, Grove would rip his employees’ ideas to shreds even while they were still on the first page of their carefully prepared presentations.

Steve Ballmer’s Meeting Style at Microsoft

Steve Ballmer's Meeting Style at Microsoft Another case in point is how Steve Ballmer conducted meetings. For most of his career as Microsoft’s CEO, Ballmer expected his employees to deliver a presentation he hadn’t seen before, take the “long and winding road” of discovery and exploration, and then arrive at the conclusion. This allowed Microsoft employees to expose Ballmer analytically to all their contemplations and postulations before steering him to their conclusions.

Years later, Ballmer reflected that this meeting style wasn’t efficient because, as a high-energy person, he couldn’t bear longwinded narratives and grew impatient for the conclusions. Ballmer changed his expectations of meetings and required employees to send him the presentation materials in advance. He would read them and directly venture into questions, asking for data and supporting evidence only if needed. This gave him greater focus in meetings.

Idea for Impact: Attune to Your Boss’s Communication Style

As I’ve discussed in previous articles, your ability to work well with others can mean the difference in whether your career progresses or stalls. To advance professionally, it’s particularly important that you have a good working relationship with your immediate supervisor.

Attune to Your Boss's Communication Style Bosses, like all people, differ greatly in their capacities and communication styles. You and your boss may be reasonably compatible or you may have entirely different communication preferences, temperaments, and styles. Regardless, you need to achieve a beneficial and cordial way of working with your boss.

Invest time and energy in understanding how your boss works, her ambitions and goals, her priorities, her strengths and weaknesses, the specificity she expects from your projects and decisions, her hot buttons, and her flash points.

Accommodate your boss’s work style. Discuss communication preferences and seek feedback. Be flexible. Ask questions to clarify what you don’t understand.

How to Conquer Cynicism at Your Workplace

How to Conquer Cynicism at Your Workplace

Enthusiasm rubs off on others

A few weeks ago, I met a friend at Chick-fil-A. When it was my turn to order, I told the woman taking our orders that I am vegetarian and couldn’t eat much of the offerings on her menu. The woman asked me, “How about a milkshake? I make the best strawberry milkshake!” I could not misjudge her sincerity and pride. It’s not often that one is asked anything like that at any service-business, let alone at a fast food chain restaurant.

In a world of work that’s so rampant with cynicism, there’s nothing more refreshing than encountering employees who are engaged, cheerful, and take pride in what they do.

In the same vein, in The HP Way (see my summary & review), author David Packard and co-founder recalls an engaged worker at Hewlett-Packard:

I recall the time, many years ago, when I was walking around a machine shop, accompanied by the shop’s manager. We stopped briefly to watch a machinist making a polished plastic mold die. He had spent a long time polishing it and was taking a final cut at it. Without thinking, I reached down and wiped it with my finger. The machinist said, “Get your finger off my die!” The manager quickly asked him, “Do you know who this is?” To which the machinist replied, “I don’t care!” He was right and I told him so. He had an important job and was proud of his work.

Conquer Cynicism and Negativity in a Workplace

How to conquer cynicism and negativity in a workplace

Cynicism is an upshot of distrust in the workplace. Cynics have misgivings about their managers’ and leaders’ motives. Cynics are further aggravated by the comparatively lofty salaries commanded by corporate leaders. The once-presumed social contract between employers and employees has dissolved, and cynics believe that given the chance, their employers will exploit their contributions.

The damage of cynicism is evident in lower levels of commitment, distrust, blame, criticism, politicking, divisiveness, pessimism, negativity, and sarcasm. Moreover, cynicism worsens with employees’ age and tenure.

Here’s how to conquer cynicism:

  • Firstly, don’t be cynical yourself. If you display even a hint of pessimism, you’re likely to feed into your team’s cynicism, especially if you’re a manager.
  • Try to love—at least show some passion—what you do and whom you work with. Passion for your work brings a remarkable sense of meaning and attracts opportunities for growth.
  • Recognize that people bring their entire selves to their jobs; they don’t turn off their hearts and souls when they come to work. Today’s demanding and competitive workplace requires of employees not only stamina to work exceptionally hard but also their hearts-and-minds’ commitment to bring creativity and insight to their efforts.
  • Care for people and understand what drives them. Money is not as powerful a motivator for most people than when they truly don’t have enough of it. Beyond a threshold, people are more motivated at work by the opportunity to learn, grow in responsibilities, contribute to a cause, and get recognition for their achievements.
  • Encourage two-way flow of information, identify and change stress-provoking work patterns, clarify their roles, convey clear and concise objectives, coach and give regular feedback.

Idea for Impact: Employees who are engaged are more productive. Determine what makes your employees most engaged in their work. Ask what parts of their jobs they like the best and what you could do to decrease their job pressures. Engage them by tapping into their natural talents and strengths.

David Ogilvy on Russian Nesting Dolls and Building a Company of Giants

In the Company of Giants

Ogilvy & Mather founder and creative genius David Ogilvy (1911–1999) designed some of the world’s most successful and iconic marketing campaigns, including the legendary Man in the Hathaway Shirt advertisement.

Ogilvy left a rich legacy of ideas in his books. Confessions of an Advertising Man and Ogilvy on Advertising describe how he approached his creative life and aimed for greatness rather than settling for second best.

David Ogilvy on Hiring Smart

'Ogilvy on Advertising' by David Ogilvy (ISBN 039472903X) In the preface of an Ogilvy & Mather recruiting brochure, Ogilvy explained the high creative standards and attitudes he expected of his employees:

We are looking for gentlemen with ideas in their heads and fire in their bellies. If you join Ogilvy & Mather, we shall teach you everything we know about advertising. We shall pay you well, and do our damnedest to make you succeed. If you show promise, we shall load responsibility on you—fast. Life in our agency can be very exciting. You will never be bored. It’s tough, but it’s fun.

Ogilvy directed his recruiters to seek out highflyers, “Hot creative people don’t come around looking for jobs; they have to be rooted out like truffles by trained pigs. Do our trained pigs do any rooting? I don’t think so.”

Recruiting brilliant people is a kind of brilliance in itself

David Ogilvy on Russian Nesting Dolls and Building a Company of Giants In his bestselling Ogilvy on Advertising, Ogilvy described how recruiting smart people was the key to transforming his advertising agency into a global advertising, marketing and public relations giant. He wrote,

When someone is made the head of an office in the Ogilvy & Mather chain, I send him a Matrioshka doll from Gorky. If he has the curiosity to open it, and keep opening it until he comes to the inside of the smallest doll, he finds this message:

“If each of us hires people who are smaller than we are, we shall become a company of dwarfs. But if each of us hires people who are bigger than we are, we shall become a company of giants.”

Entrepreneurship guru Guy Kawasaki echoed the importance of hiring smarter people and recalled in Reality Check that, when he worked at Apple in 1984, “In the Macintosh Division, we had a saying, ‘A players hire A players; B players hire C players’—meaning that great people hire great people. On the other hand, mediocre people hire candidates who are not as good as they are, so they can feel superior to them. If you start down this slippery slope, you’ll soon end up with Z players; this is called the Bozo Explosion.”

The best managers hire employees with superior intellect—and revel in it

Managers are typically judged not on their personal output but on how well they’ve hired, coached, and motivated their people—individually and collectively.

A wise manager hires employees who are smarter, more creative, and more talented than the manager is. The new employees’ talents will improve the entire team’s performance and reputation—even the manager’s.

In contrast, a mediocre manager feels threatened by underlings who seem more intelligent than the manager is. Mediocre managers tend to hire down—they fear that a superior employee could make the manager look inferior and perhaps hold back their career progress.

Idea for Impact: People make or break businesses; so hire people who are smarter than you are.

Management by Walking Around the Frontlines [Lessons from ‘The HP Way’]

President Abraham Lincoln visiting the Union Army troops during American Civil War In the early part of the American Civil War, President Abraham Lincoln regularly met the Union Army troops and made informal inquiries of their preparedness.

Decades later, on the eve of the Allied invasion of Normandy in June 1944, Dwight Eisenhower paid a visit to American and British paratroopers who were preparing to go into battle. As I described in two previous articles (here and here,) the Normandy invasion’s success was wholly dependent on the weather across the English Channel, something Eisenhower could not control. Eisenhower famously told his driver “I hope to God I’m right” about his wager with the weather in launching the Allied attack.

These two leaders were carrying out what is now called Management by Walking Around (MBWA.)

Without MBWA, managers rarely emerge from their offices-turned-fortresses

General Eisenhower addressing American paratroopers on 5-June-1944 before the Battle of Normandy MBWA is a widespread management technique in which managers make frequent, unscheduled, learning-oriented visits to their organization’s frontlines. Managers interact directly with frontline employees, observe their work, solicit their opinions, seek ideas for improvement, and work directly with the frontline to identify and resolve problems.

Hewlett-Packard (HP) was the first company to adopt MBWA as a formal management technique. In The HP Way (1995,) co-founder David Packard attributes much of the success of his company’s remarkably employee-oriented culture to managers’ good listening skills, employees’ enthusiastic participation, and an environment where employees feel comfortable raising concerns—all cultural attributes directly engendered by MBWA.

Fostering open two-way communication

The American quality management pioneer Edwards Deming (1900–1993) once wrote of MBWA, “If you wait for people to come to you, you’ll only get small problems. You must go and find them. The big problems are where people don’t realize they have one in the first place.”

Acclaimed leadership guru Tom Peters popularized MBWA in his bestsellers In Search of Excellence and A Passion for Excellence. Even today, Peters advocates that leaders and managers use MBWA to not only personally spread the company’s values to the frontline but also to accelerate decision-making by helping employees on the spot.

Sam Walton with Walmart's Frontline Employees » Management by Walking Around

Learning about problems and concerns at firsthand

'The HP Way' by David Packard (ISBN 0060845791) MBWA is comparable to the Toyota Production System‘s concept of gemba walks” where managers go to the location where work is performed, observe the process, and talk to the employees. By enabling managers to see problems in context, organizations can better understand a problem, its causes, and its negative impact. Gemba (Japanese for “the real place”) thus facilitates active problem solving.

Because of MBWA, managers’ presence on the frontlines sends a visible signal that a company’s management connects with the realities of the frontline and that leadership is serious about listening to employees’ opinions and resolving problems. MBWA thus complements an organization’s open-door management policy.

Idea for Impact: Practice MBWA

Employees will appreciate that their managers and leaders are open-minded and will sincerely listen to what employees have to say.

Don’t use MBWA to spy on employees or interfere unnecessarily with their work.

The Curse of Teamwork: Groupthink

The Curse of Teamwork: Groupthink

Many teams tend to compromise their decisions for the sake of consensus, harmony, and “esprit de corps.” The result is often a lowest-common-denominator decision upon which everybody in the team agrees. This predisposition for a team to minimize conflict and value conformity is the psychological phenomenon of Groupthink.

'Victims of Groupthink' by Irving Janis (ISBN 0395317045) In the 1970s, American psychologist Irving Janis defined Groupthink as “a mode of thinking that people engage in when deeply involved in a cohesive in-group, when the members’ strivings for unanimity override their motivation to realistically appraise alternative courses of action.” Janis argued that Groupthink “undermines critical analysis, legitimizes ignorance, reinforces collective biases, and promotes a group self-image of infallibility.”

Negative Effects of Groupthink in Teamwork

Teams are prone to Groupthink and a variety of other detrimental decision-making approaches, but are seldom aware of it.

  • Groupthink suppresses dissent Individuals resign to group pressure, thereby conforming their opinions to a decision that they believe will achieve consensus. Groupthink discourages dissenters from “rocking the boat.” Over time, nonconformists are gradually shunted aside or excluded from the team altogether.
  • Groupthink engenders self-censorship. Individuals who disagree with the chosen course of action remain silent because they reason they cannot change others’ minds. Consequently, the team tends to focus its discussions on ideas that everyone agrees about rather than ideas that everyone disagrees about.
  • Groupthink gives team members greater confidence in their collective decisions than their individual decisions. Therefore, Groupthink leads individuals to publicly endorse ideas and decisions that they view as common for the group, even if they personally have reservations about them.
  • Groupthink stifles creativity and independent thinking. When individuals are unwilling to bring up and confront difficult issues, the team fails to examine alternative viewpoints that could be contentious. This leads to irrational and flawed decisions.

Antidote to Groupthink in Teamwork

Negative Effects of Groupthink in Teamwork An awareness of Groupthink and other group dynamic biases combined with some hands-on intervention, self-reflection, and control can help teams make better decisions.

  • Create an organizational environment where individuals can freely voice their ideas, challenges, and concerns. Individuals must feel comfortable with taking interpersonal risks, admitting hesitations, and challenging one-another. Absent an inclination to avoid conflict, a team can easily discuss and debate different perspectives.
  • Think about the right information required to make sound decisions. Consider the strongest counter-argument to every idea.
  • Do not suppress disagreements or dominate the dissenters. Carefully examine the reasons and implications of alternate viewpoints.
  • Divide a team into sub-teams or partnerships and set each sub-team to work on a problem independently. Encourage them to take into account the plusses and the minuses of each idea.
  • Designate one team member as a devil’s advocate to argue enthusiastically against all contemplated ideas. This can force the team to discuss and debate the concomitant merits and demerits of different ideas. In Edward De Bono’s Six Thinking Hats process (see my book summary), the devil’s advocate wears the “black hat.”
  • Invite outside consultants and subject-matter experts to discuss key issues and review decisions.
  • Appoint a moderator who can engage the team collectively and individually by gathering all points of view, giving feedback, and challenging the team’s thinking. Ideally, the moderator should be an independent third party who can be comprehensive and forthright.
  • Step back regularly from the team’s deliberation process to reflect on the effectiveness of the team’s decision-making and intervene where necessary. In the Six Thinking Hats process, De Bono suggests adding reflection time at the end of each meeting to analyze the process’ effectiveness.

Idea for Impact: Sometimes, Teamwork is Overrated

Don’t get me wrong: teamwork can be very powerful, but only when teams consist of individuals who have the right expertise and who are willing to voice their forthright opinions, dissent, and build consensus. Avoid teamwork when one person or a partnership with complementary skills and styles may achieve identical objectives.

To prevent Groupthink, establish an environment where speaking up is encouraged and rewarded. Welcome disagreements, avoid dominating dissenters, and contemplate the strongest counter-argument to every idea.