The 7 Hidden Reasons Employees Leave [Book Summary]

Employee engagement and retention of top talent is a holy grail of people management—and nearly as hard to pin down.

Employees expect managers to be fair, pay fairly, listen, value opinions, relate, develop, challenge, demonstrate care, advance, and so on. But many employees don’t know when and how to voice their concerns, or negotiate for what they want.

All managers know that engaged employees are happier and more productive. Yet, managers and HR managers cannot simply make employee engagement “happen.”

'The 7 Hidden Reasons Employees Leave' by Leigh Branham (ISBN 0814408516) In The 7 Hidden Reasons Employees Leave, employee-retention expert Leigh Branham discusses how companies can tackle employee disengagement and retain their best and brightest people.

Using a copious amount of facts and figures from interviews and surveys, Branham explores seven reasons for employee disengagement. For each reason, Branham lists signs that managers need to keep their eyes open for, and shows how employers and employees could communicate and understand their mutual needs and desires.

“Some Quit and Leave … Others Quit and Stay”

According to Branham, employee disengagement—and eventual resignation—is not an event; rather, it is a plodding process of bitterness, discontent, and eventual withdrawal that can take weeks, months, or even years until the definite choice to resign happens. He lists the ten most common stimuli that trigger employee disengagement:

  1. Poor management
  2. Lack of career growth and advancement opportunity
  3. Poor communications
  4. Issues with pay and remuneration
  5. Lack of recognition
  6. Poor senior leadership
  7. Lack of training
  8. Excessive workload
  9. Lack of tools and resources
  10. Lack of teamwork

Branham claims to have synthesized some 20,700 employee-exit surveys and has identified four fundamental human needs (compare to Maslow’s hierarchy of needs) that must be met by employers:

  • Employees need to feel proficient. They want to be matched to a job that aligns with their talents and their desire for a challenge.
  • Employees need to feel a sense of worth. They want to feel confident that their commitment and their efforts translate into meaningful contributions to their company’s mission. They desire to be recognized and rewarded appropriately.
  • Employees need to be trusted. They expect their employers to pay attention, and be honest and open in their communications.
  • Employees need to have hope. They want to be treated fairly, and given opportunities to grow their skills and advance their careers.

Why Employees Start Feeling Disconnected from Their Work

Why employees start feeling disconnected from their work The core of The 7 Hidden Reasons Employees Leave is a “how to” guide to address each of the seven reasons to enable a company to pursue the path to become an “employer of choice.”

Reason #1: The Job or Workplace Was Not as Expected. Many new hires join their companies with a wide range of misconceptions and unrealistic expectations. Some stay and adapt, others disengage and stay, and some others disengage and ultimately leave. Branham advocates creating realistic job descriptions, and open communications between managers and employees on achieving their mutual goals and expectations.

Reason #2: The Mismatch between Job and Person. Companies with strong reputations for selecting the right talent and keeping employees well matched with their jobs have a strong commitment to the continuous upgrading of talent. Managers can assign tasks so that employees can be more engaged through the use of their “motivated abilities.” Managers must keep an eye open opportunities to augment employees’ jobs by delegating tasks they might not have considered before.

Reason #3: Too Little Coaching and Feedback. Branham affirms that most managers do coaching and feedback merely as annual or biannual HR-required discussions that bind ambiguous targets to performance-ranking and pay scale. Managers must lead frequent, informal, on-the-job feedback conversations with employees. Branham identifies four principal themes that managers must address to make their performance management practice seem less controlling and more of a partnership:

  1. “Where are we going as a company?”
  2. “How are we going to get there?”
  3. “How does the manager expect the employee to contribute?”
  4. “How is the employee doing? What is going well? What are the key suggestions for improvement?”

Reason #4: Too Few Growth and Advancement Opportunities. Branham observes that most talented employees cannot pinpoint and articulate, and often underuse their greatest strengths. He encourages companies to provide self-assessment tools and career management training for all employees, enabling them to be the best they possibly can be. Most “employers of choice” have a strong mentoring culture. They communicate that employees must take the initiative in their own career development.

Reason #5: Feeling Devalued and Unrecognized. To Branham, many companies do not have a formal and informal culture of recognition because their managers are themselves too busy with their nominal responsibilities to pay adequate attention to employees’ performance. Or, they can’t discern between average and superior performance. He lists recommendations for competitive base- and variable-pay linked to achieving business goals. He reminds managers that employees are hungry to be listened to, and want their ideas sought and implemented.

How companies can tackle employee disengagement and retain their best and brightest people Reason #6: Stress from Overwork and Work-life Imbalance. Branham observes that the relationships employees form with other employees is a glue that binds people to their workplaces. He encourages fostering social connectedness by assigning cross-functional team projects and organizing group outings.

Reason #7: Loss of Trust and Confidence in Senior Leaders. When senior leaders don’t back up pronouncements such as “people are our most important asset” with their actions, even mid-level managers begin to question the decisions and the actions of senior leaders. The result is a manifest lack of enthusiasm in the workplace, and in the rising complaints and questions about policies and practices. Leaders must set the tone for workplace culture and must back up their words with actions to discourage employee cynicism and disengagement.

Becoming an Engaged Leader is the Embodiment of What Leadership Means

Recommendation: Fast read Leigh Branham’s The 7 Hidden Reasons Employees Leave. This book makes a great reading for managers and leaders who will need to scratch beneath the surface to recognize unhappy employees before it’s too late, and then engage their employees better and retain their top talent.

While many of the book’s themes may appear familiar, The 7 Hidden Reasons discuses many ideas and “engagement practices” in great specificity to help managers and leaders keep their antennae up for signs of bitterness and discontent, and correct before they lose their best and brightest people. This practical tome can also help employees discuss and resolve their needs and desires.

Developing a deep understanding of what causes employees to lose motivation, disengage, and leave cannot be ignored or overlooked. Managers and leaders who can resolve the divergence that employees feel between their personal values and the best interests of their businesses will gain immeasurably by having a highly engaged and productive workforce.

One of the Tests of Leadership is the Ability to Sniff out a Fire Quickly

One of the tests of leadership is the ability to recognize a problem before it becomes a disaster

I’ve previously stressed the importance of problem-finding as an intellectual skill. I’ve also highlighted why risk analysis and risk reduction should be one of the primary goals of any intellectual process. In this article, I’ll write about being proactive in identifying problems before they evolve into crises.

How Wells Fargo Failed to Recognize a Problem and Address it before it Became a Bigger Problem

As the Wells Fargo accounts scandal unfolded, it was clear that Wells Fargo’s leadership was well aware of the burgeoning problems early on, but failed to act decisively and nip the problem in the bud.

Given impossible sales quotas to reach, Wells Fargo’s “high pressure sales culture” opened as many as two million bank and credit card accounts on behalf of its customers without their consent. Employees were rebuked or even fired for not meeting aggressive cross-selling targets.

Human nature is such that high-pressure demands can deplete the willpower people need to act morally and resist temptations. And such demanding circumstances encourage people to go into defensive mode, engage in self-interested behaviors, and consider only short term benefits and dangers.

Leadership Lessons from the Wells Fargo Accounts Scandal: “A Stitch in Time Indeed Saves Nine”

Leadership Lessons from the Wells Fargo Accounts Scandal Wells Fargo’s leadership reportedly had data about ethical breaches, but they ignored or misjudged the impact of the problem. Wells Fargo even held a two-day ethics workshop in 2014 unequivocally telling their employees not to do that. As per an internal review, managers knew that 1% of employees had been fired for “sales integrity” violations.

Wells Fargo’s leadership didn’t act quickly and decisively to mitigate the effects of the crisis. Warren Buffett, one of the Wells Fargo’s biggest investors, summarized this leadership inaction at the 2017 Berkshire Hathaway annual meeting:

There were three very significant mistakes, but there was one that was worse than all the others … The main problem was that they didn’t act when they learned about it … at some point if there’s a major problem, the CEO will get wind of it. And at that moment, that’s the key to everything, because the CEO has to act. It was a huge, huge, huge error if they were getting, and I’m sure they were getting, some communications and they ignored them or they just sent them back down to somebody down below.

Leadership: “Only the Paranoid Survive”

Andy Grove (1936–2016,) the illustrious cofounder and CEO of Intel, was a famous worrier. At Intel, the focal point of Grove’s leadership style was worry and skepticism. He believed that business success contains the seeds of its own destruction, and that in order for an organization to have longevity, it needs to continue to worry about the future.

'Only the Paranoid Survive' by Andrew S. Grove (ISBN 0385483821) Grove’s principle was immortalized in his famous proclamation, “Success breeds complacency. Complacency breeds failure. Only the paranoid survive.” He eloquently explained his worrisome mantra in his bestselling corporate memoir, Only the Paranoid Survive (1996.) He wrote in the preface:

The things I tend to be paranoid about vary. I worry about products getting screwed up, and I worry about products getting introduced prematurely. I worry about factories not performing well, and I worry about having too many factories. I worry about hiring the right people, and I worry about morale slacking off. And, of course, I worry about competitors. I worry about other people figuring out how to do what we do better or cheaper, and displacing us with our customers.

At Intel, worrying about the future created a culture of triumph that propelled change and innovation. Grove never let Intel rest on its laurels and led the company to break boundaries in microprocessor innovation. During his tenure as CEO from 1987—98, Intel’s stock price rose 32% a year. Grove also said, “A corporation is a living organism; it has to continue to shed its skin. Methods have to change. Focus has to change. Values have to change. The sum total of those changes is transformation.”

Idea for Impact: Learn to Sniff out a Fire Better than Anyone Does

The principal tasks of leadership are (1) identifying the biggest risks and opportunities, and (2) allocating organizational resources. Therefore, one of the tests of leadership is the ability to recognize a problem before it becomes a disaster. If identified and addressed early, nearly any problem can be resolved in a way that is beneficial for everyone involved.

Many leaders tend to be reactionary—they claim, “why fix something that isn’t broken.” Even when they see an impending problem, they may assume that the problem “isn’t that big of a deal” and wish the problem will just go away. Alas, many problems never go away; they only get worse.

To become a good leader, be paranoid—always assume that “there’s no smoke without fire.” If, according to Murphy’s Law, everything that can go wrong will go wrong, the paranoid leader has an advantage.

Whenever you are doing anything, have your eyes on the possibility of potential problems and actively mitigate those risks. Never allow a problem to reach gigantic proportions because you can and must recognize and fix it in its early stages.

As the medieval French philosopher and logician Peter Abelard (1079–1142) wrote, “The beginning of wisdom is found in doubting; by doubting we come to the question, and by seeking we may come upon the truth.”

Bad Customers Are Bad for Your Business

Herb Kelleher: “Dear Mrs. Crabapple, We will miss you.”

Herb Kelleher of Southwest AirlinesSouthwest Airlines is a paragon of superlative customer service. Southwest’s happy and engaged employees routinely go out of their way to delight their customers. In spite of such remarkable devotion to customer satisfaction, there have been times when Southwest had to decide that some customers were just wrong for their business.

In the very entertaining and enlightening Nuts!: Southwest Airlines’ Crazy Recipe for Business and Personal Success, authors Kevin and Jackie Freiberg narrate how Southwest had to let go of a customer who couldn’t be less satisfied with her travel experience. This customer relations-story is best appreciated in light of the fun-loving and gregarious nature of Southwest’s legendary founder and ex-Chairman/CEO Herb Kelleher.

'Nuts- Southwest Airlines' by Kevin and Jackie Freiberg (ISBN 0767901843) A woman who frequently flew on Southwest, was constantly disappointed with every aspect of the company’s operation. In fact, she became known as the “Pen Pal” because after every flight she wrote in with a complaint.

She didn’t like the fact that the company didn’t assign seats; she didn’t like the absence of a first-class section; she didn’t like not having a meal in flight; she didn’t like Southwest’s boarding procedure; she didn’t like the flight attendants’ sporty uniforms and the casual atmosphere.

Her last letter, reciting a litany of complaints, momentarily stumped Southwest’s customer relations people. They bumped it up to Herb’s desk, with a note: ‘This one’s yours.’

In sixty seconds, Kelleher wrote back and said, ‘Dear Mrs. Crabapple, We will miss you. Love, Herb.’

Bad Customers: Wrong for Your Business, Wrong for Your Employees

Bad Customers: Wrong for Your Business, Wrong for Your Employees

Customers are the lifeblood of any business. Customer satisfaction begets loyalty, and loyalty begets revenues and profits. Businesses can therefore never place too much emphasis on their customers.

However, with slogans like “the customer is always right,” many businesses fall into the trap—and the slippery slope—of trying to satisfy every customer’s every wish.

Although your business may need all its customers—even the irksome ones—the reality is that some customers can actually be bad for your business. You can’t sustainably run a business without trying to satisfy every customer—particularly those cranky, annoying, or unreasonable ones.

Be wary of customers that fall into these categories:

  • Customers who require high maintenance but cannot be charged more
  • Customers whose demand for price destroys your profitability
  • Customers who want a lot more (better product, better service, better schedule) but are tightfisted
  • Customers who require supplementary services or products (especially those that are not part of your business’s core competencies) and tailored solutions that you don’t provide and can’t profitably offer to the rest of your customer base
  • Customers who don’t subscribe into the future vision of your business or your industry, which they’ll need to strategically commit to as some point in the future
  • Customers who tend to be aggressive and hostile, and disrespectful to your employees, regardless of how well they serve the customers

Strategic Customer Management Involves Being Tough Minded with Some Customers

Strategic Customer ManagementConsidering your long-term business goals, sifting through who should and who shouldn’t be your customers is an important element of strategic leadership.

With every product or service you offer, focus on who you want your customer to be, what expectations they have of you, and what you can profitably provide to them. Once you have figured that out, customers who don’t fit well need to be managed judiciously and decisively.

Without strategic customer management, you run a risk of disrupting your ability to converge around the needs of your principal customer base.

Remember the notion of opportunity costevery ‘no’ is a ‘yes’ to something important.

Idea for Impact: Let Go of Some of Your Troublesome Customers

Sometimes, it may be better to lose certain customers by turning them down than to dilute your ability to serve other valuable customers profitably. Stop trying to delight every customer. Take a hard look at the past, current, and future of every customer and prioritize whom you can going to serve better and more successfully.

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.

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 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.

How to Handle Employees who Moonlight

How to Handle Employees who Moonlight Moonlighting—working a part-time job or having a business “on the side”—can pose a challenge for employers. Moonlighting can lead to divided allegiance, conflicts of interest, and poor job performance.

Employers expect employees to be present and prompt at their jobs. If employees are hustling to attend to multiple commitments, fatigue, lack of sleep, poor attentiveness, tardiness, and absenteeism can become problems. When an employees’ moonlighting hurts their on-the-job performance, employers are within their rights to discipline and terminate employees. For these reasons, some employers limit or prohibit moonlighting.

The proactive approach to moonlighting

One way to head off moonlighting problems is to have a policy about part-time jobs and running side businesses. Institute a policy that sets performance expectations, protects proprietary information, avoids conflicts of interest, and averts divided allegiance. Your moonlighting policy cannot regulate employees’ off-duty activities or prohibit employees from having other jobs. But it may expect employees to disclose and get approval for supplementary employment. A moonlighting policy may also require senior managers and leaders to disclose directorships and financial interests in other companies.

Tell employees they can’t mix their business with your company’s business

If you find an employee doing side work for pay from your office, tell him that this is a clear violation of office expectations; he should conduct no business other than your company’s during work hours. Tell your employee, “You can’t mix your other business with our business. Your time at this job should be exclusively for this job. Our company resources are for our company’s purposes only.”

If your employee gets occasional calls that he needs to attend to, reiterate the above expectation and encourage him to answer the calls during break time and away from his desk. Encourage him to respond to those calls with “I’m at my other job right now. Let me call you back later.”

Discourage employees from selling stuff to other employees

Problems from employees moonlighting in part-time jobs and running side businesses If you find an employee selling stuff to other employees or soliciting outside business during paid working time, discourage it as soon as you discover it. Explain how this interferes with your office’s work.

Discourage your employees from turning your office into a showroom and making customers of other employees. Selling merchandise could impair work relationships when a buyer is unhappy with a product or service. Worse yet, side-businesses can easily grow unmanageable in case of network marketing programs (e.g. Amway, Herbalife) that encourage upselling or getting others involved as salespeople.

Employees can involve their colleagues in side-businesses outside your office, as long as such activities don’t harm at-work relationships.

Idea for Impact: Managers can forestall many employee problems by being proactive and setting expectations

In general, moonlighting is neither unethical nor illegal. It may become an issue when the employer specifically prohibits it and/or where the other job is with a competitor, supplier, or customer and is therefore a potential conflict of interest. The only time you really need to challenge an employee’s moonlighting is when it can affect your business in terms of conflicts of interest and deficient work performance.

Bear in mind: don’t overlook or disregard such concerns until they become major problems.

Advice for the First-Time Manager: Whom Should You Invest Your Time With?

Advice for the First-Time Manager: Whom Should You Invest Your Time With?

Before you were a manager, success was all about your individual performance. When you become a manager, success is all about growing your employees. It is about bringing out the best in people who work for you—making them smarter, pushing them to perform better, and advancing their professional development.

As a manager and a team-leader, your performance as an individual matters in the sense of how you cultivate your team’s efficacy and foster their self-confidence through coaching and feedback. Your success will be measured less by what you do and more from the reflected glory of your team.

Given a team to manage,

  • Don’t invest the same amount of time for each employee. Treat employees differently, based on their responsibilities, strengths, and their developmental needs. Do spend some time every week chatting with each employee. Then prioritize and invest more time with:
    • those who ask for your help.
    • those who need your help, but may not ask for it—especially those employees who may be struggling with some assignments because of their weaknesses.
    • those who are transitioning into their roles or may be experiencing changes.
    • those whose ideas and performance have the biggest impact to the organization—now or in the future.
    • those competent employees who understand the responsibility you’ve assigned them and the results expected. Especially with employees who need little help and direction getting things done, focus on ensuring that your expectations and priorities align with theirs.
  • Give your employees the freedom and responsibility to do their jobs. Set high standards and make them accountable for achieving the results.
  • Give your employees continuous, timely feedback: not just during the HR-required mid-year or end-of-year performance reviews. Thoughtfully use every meeting, design review, brainstorming, project closure, or client-presentation as a teaching moment.