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.

Don’t Push Employees to Change

Don't Push Employees to Change One of managers’ most common complaints relates to their failure to persuade their employees to change.

Having high expectations of employees can lead to bitter disappointment. The frustration that comes from employees not wanting to change causes many managers to focus on their employees’ negative qualities. Such an attitude makes it easy to find errors in employee behavior, leading to more disappointment—even resentment.

Even when an employee wants to change, he often fails to because he is pulled in two directions: by a motivation to change and by a motivation to maintain the status quo. Since change is seldom as easy as we think it will be, the motivation to maintain the status quo often triumphs.

The real reason employees (and people in general) don’t change is that underneath each employee’s commitment to change, he has an underlying, even stronger commitment to something else, as identified his intrinsic motivation.

Employees Resistant to Change For instance, an employee who expresses a desire to earn a promotion may avoid tougher assignments on his current job because he may be anxious about not measuring up. This employee may not even be fully aware of his own opposition. Therefore, managers are best served by understanding what truly motivates (and limits) each employee—i.e. his elements of intrinsic motivation. Only then can managers, through coaching and feedback, impel the employee to change by channeling the levers of extrinsic motivation (rewards, salary raise, fame, recognition, punishment) through one of the employee’s elements of intrinsic motivation.

Idea for Impact: Trying to change people will result in frustration and futility. Employees may change for a short time, but unless they have a compelling reason for change, they will go back to their natural state. Managers must temper their expectations about changing employees. As the Buddha taught, one way to lessen disappointment in life is to learn to lower your expectations of others.

Eight Ways to Keep Your Star Employees Around

Eight Ways to Keep Your Star Employees Around

Every manager should make employee retention a priority and regularly inquire, “How many of my star employees would leave my organization if they could?”

Employee turnover can be expensive. Managers must find and hire replacements, invest in training the new employees, and wait for them to get to up to speed—all while suffering productivity shortfalls during the transition. The more talented an employee, the higher the cost of replacing him/her.

Here’s what you need to do to keep your star employees around.

  1. Identify them. Find key attributes that distinguish top performers from average performers. Then rank your team against these attributes and identify those employees who are critical to your organization’s short- and long-term success.
  2. Perform salary and compensation research within your industry and offer an attractive-enough benefits package. Beyond a particular point, compensation loses much of its motivating power. Consider flexible work arrangements.
  3. Understand what your star employees value and help them realize their values and regard their work as meaningful, purposeful, and important. Often, the risk of losing employees because their personal values don’t correspond with the team’s values is far greater than the risk of losing them because of compensation.
  4. Get regular feedback from your star employees. Ask, “What can I do as your manager to make our organization a great place for you to work?” Let them tell you what they need and what they like and don’t like about their jobs. Adjust their assignments and their work conditions accordingly.
  5. Invest in training and development. Give star employees opportunities to develop their skills and increase their engagement and job security. Hold frequent and formal career discussions to determine employees’ goals and aspirations and coach them.
  6. Give your star employees the autonomy, authority, and resources to use their skills and do their jobs in their own way.
  7. Keep them challenged and engaged. Make work more exciting. Set aggressive, but realizable goals. Move your star employees around into positions in the company where they will face new challenges and develop critical skills. Employees would like to be challenged, appreciated, trusted, and see a path for career advancement.
  8. Appreciate and give honest feedback regularly. Make timely and informal feedback a habit. Don’t disregard employee performance until the annual review. Help employees feel confident about your organization’s future. Earn their trust.

To Inspire, Pay Attention to People: The Hawthorne Effect

The Hawthorne Effect: When managers pay attention to people, better morale and productivity ensue

The Hawthorne Experiments

Sociologist Elton Mayo’s Hawthorne Experiments marked a sea change in industrial and organizational psychology. In the late 1920s and early 1930s, Mayo led this famous series of experiments on workers’ productivity at a Western Electric factory in the Chicago suburb of Hawthorne.

The experiments’ initial purpose was to study the effects of workers’ physical conditions on their productivity. The lighting in the work area for one group of workers was dramatically improved while another group’s lighting remained unchanged. The productivity of the workers with the better lighting increased.

The experimenters found similar productivity improvements when they improved other working conditions, viz., work hours, meal and rest breaks, etc. Surprisingly, the workers’ productivity increased even when the lights were dimmed again. In fact, even when everything about the workplace was restored to the way it was before the experiments had begun, the factory’s productivity was at its highest level.

Recognition and even simple acknowledgment can give people a boost

When Elton Mayo discussed his findings with the workers, he learned that the interest Mayo and his experimenters had shown in the workers made them feel more valued. They were accustomed to being ignored by management.

Mayo concluded that the workers’ productivity and morale had not improved because of the changes in physical conditions, but rather from a motivational effect—the workers felt encouraged when someone was actually concerned about their workplace conditions.

'The Social Problems of an Industrial Civilisation' by Elton Mayo (ISBN 0415436842) The Hawthorne Experiments understood the individual worker in a social context. The resulting insight was that employees’ performance was influenced not only by their own innate abilities but also by their work environment and the people they work with. Mayo wrote in The Social Problems of an Industrial Civilisation, “The desire to stand well with one’s fellows, the so-called human instinct of association, easily outweighs the merely individual interest and the logic of reasoning upon which so many spurious principles of management are based.”

Over the decades, the methodology and conclusions of the Hawthorne experiments have been widely debated. Yet the key takeaway is profound: when managers pay attention to people, better morale and productivity ensue.

Idea for Impact: Employee engagement is the very heart of effective management

Inspire your employees by asking them how they are doing. Let them in on the plans for your organization, seek their opinions, recognize them, appreciate their work, and coach and give them feedback.

Even a little appreciation and praise can go a long way to boost employee morale. The desire for recognition is a basic human need; and managers can easily fulfill this need with the aim of bringing out the best in people.