Leading Teams

Don’t Manage with Fear

June 16, 2022 By Nagesh Belludi Leave a Comment

Stop Leading Through Fear---Gain Commitment, Not Compliance The ability to rouse fear has forever been an essential tool of management. Fear can be an effective mobilization tool in the short term. But fear breeds complicity, not commitment.

Instead of fear-based tactics, try soft power. Build trust and gain influence using these methods.

Develop an inspiring vision. Work hard to follow through on implementing that vision and celebrate even little accomplishments along the way.
Communicate expectations. Ask, “How can I help you do your job better?” Follow up. No need to keep everything too close to the vest. You needn’t tell everything you know, but what you say and do has to be true.
Solve problems quickly. Push for results. Set aside some time for review and create options or actions that are apt for your team’s situation. Be tough where you must be, kind where you can be.

Idea for Impact: Don’t take the fear approach with employees. With motivation, fear works—up to a point. Understand how your people view your leadership style and ensure your behavior doesn’t cross the line between pushing them hard and pushing them away.

Nuts! The Story of Southwest Airlines’ Maverick Culture // Book Summary

May 30, 2022 By Nagesh Belludi Leave a Comment

Kevin & Jackie Freiberg’s Nuts! Southwest Airlines’ Crazy Recipe for Business and Personal Success (1996) is a popular tome about the history and culture of Southwest Airlines and the fun-loving antics of its colorful co-founder and CEO Herb Kelleher (see my tribute.)

Despite its Pollyannaish tone and repetitive narratives, Nuts| is a very enjoyable cheerleaders’ account of how an underdog overcame roadblocks and thrived in a competitive industry.

Nuts| focuses on the people-oriented culture that Herb and his secretary Colleen Barrett established based on Herb’s well-known dictum, “The business of business is not business. The business of business is people.” To Herb, Southwest was a cause—never just a company. The Freibergs write,

If there is an overarching reason for Southwest Airlines’ success, it is that the company has spent far more time since 1971 focused on loving people than on the development of new management techniques. The tragedy of our time is that we’ve got it backwards. We’ve learned to love techniques and use people. This is one of the reasons more and more people feel alienated, empty, and dehumanized at work. Many organizations today would be surprised at how much more people would be willing to give of themselves if only they felt loved.

Southwest Airlines---Employee Culture

Nuts| is dreadfully out-of-date. Southwest and the airline industry have changed a lot since the mid-90s. Southwest even stopped handing out peanuts to protect passengers from peanut-related allergies.

The miracle at Southwest Airlines could keep on only so long. As long as Herb was the CEO, employees would go the extra mile for the sake of Herb. Until his retirement in 2001, Herb preserved Southwest’s unique cost structure and work rules. Kelleher’s successor, Jim Parker, presided over mounting labor tensions and quit after just three years. CFO Gary Kelly replaced Parker in 2004. Bob Jordan became CEO in 2022.

The going has not been smooth for Kelly. Southwest has become more like the other carriers regarding employee relationships and cost structure. The rehabilitated legacy airlines and a new breed of ultralow cost carriers have chipped away gradually at many of Southwest’s apparent competitive advantages. Yes, customers still rave about Southwest’s friendly staff, unpretentious service, and flexibility in travel planning. However, Southwest hardly ever has the lowest fares on most routes. In fact, Southwest’s average fares have outpaced the industry by 12% since 2009.

Miracle of Southwest Airlines: Employee Culture

Recommendation: Speed-read Nuts! … it’s full of original insights, upbeat stories, and concrete suggestions for principle-centered leadership and how to inspire people to achieve incredible results. Here are the key takeaway lessons:

Even a little respect goes a long way. Give employees responsibility and entrust them to take that responsibility.
Set the ground rules—and let employees be creative. “Culture is one of the most precious things a company has, so you must work harder at it than at anything else.”
Give your employees some skin in the game, and they’ll go the distance. Southwest claims, “We have credibility because we tell people what we’re going to do and then we do it.”
Empower workers to make decisions at the customer level. Employees who feel they have leeway in their jobs to make the “right decision” depending on circumstances are happier, more confident, and more productive. They’ll even give extra—because they believe their work has special meaning and is not just a job.
Make sure people feel they can be themselves and have opportunities to express individuality.
See yourself as a motivator and a positive force. When things go wrong, accentuate the positive and focus on a path to a solution. It’s an approach that employees will admire and want to emulate.
Build a sense of community. Foster the feeling of a “family” in which employees can count on each other professionally and personally.
Recognize that employees have lives outside of work. Celebrate every milestone to establish and strengthen relationships. The walls of Southwest’s headquarters are covered with pictures and commemorative plaques of picnics, community service awards, customers’ commendation letters, service employee milestones, and tributes to important cultural events.

Why You May Be Overlooking Your Best Talent

April 25, 2022 By Nagesh Belludi Leave a Comment

Many organizations have a hard time articulating their culture. They can’t explain what they mean when they evoke the phrase “culture fit.” Sometimes it’s just an excuse to engage employees better whom managers feel they can personally relate.

Affinity bias is a common tendency to evaluate people like us more positively than others. This bias often affects who gets hired, promoted, or picked for job opportunities. Employees who look like those already in leadership roles are more likely to be recognized for career development, resulting in a lack of representation in senior positions.

This affinity for people who are like ourselves is hard-wired into our brains. Outlawing bias is doomed to fail.

Idea for Impact: If you want to avoid missing your top talent, become conscious of implicit biases. Don’t overlook any preference for like-minded people.

For any role, create a profile that encompasses which combination of hard and soft skills will matter for the role and on the team. Determine what matters and focus on the traits and skills you need.

Employee Surveys: Asking for Feedback is Not Enough

April 20, 2022 By Nagesh Belludi Leave a Comment

Employee Satisfaction Surveys: Asking for Feedback is Not Enough

Nothing undermines employee trust faster than inviting employees to provide feedback about their work experience and then not following up.

Don’t take the employee satisfaction survey results at face value. Don’t discount the importance of the findings by brushing them off, “the data were what we expected” or “there were no real surprises here.”

Show that you’ve listened to what employees are saying. Initiate strategic conversations with selected employees and explore critical issues in more depth. Establish cross-functional teams to react to the survey’s findings. Let the team consist primarily of non-senior employees. A senior manager could sponsor and support—not manage—the team and see an action plan through.

Idea for Impact: Employee surveys, focus groups, and discussions that don’t change how an organization functions ultimately undermine employees’ faith that their leaders really care what the employees think. Close the communication loop.

What To Do If Your New Hire Is Underperforming

March 22, 2022 By Nagesh Belludi Leave a Comment

What To Do If Your New Hire Is Underperforming If a recent hire, particularly one brought into the team with high expectations, isn’t delivering, start by asking the following two questions:

Is the employee in an environment that allows her to perform at her best?
Are you clear on what her personal objectives are?

Only after answering both these questions with a ‘yes’ can you move to consider coaching, reassess the employee’s suitability, and examine if you need to terminate the bad hire quickly and cut your losses.

Idea for Impact: Nothing puts wind beneath a manager’s wings more quickly than asking these two questions when dealing with employee underperformance. Ask, don’t guess, how you can accommodate each employee’s strengths and needs and create an environment that works best for each individual.

There’s no one-size-fits-all answer to creating a positive culture, empowering employees, and tackling performance problems. Each employee faces individual challenges and has her own goals and preferences.

Don’t Be A Founder Who Won’t Let Go

January 17, 2022 By Nagesh Belludi Leave a Comment

Don't Be A Founder Who Won't Let Go You’ll never get a potential successor to take your job if you’re going to be peering over her shoulder constantly and talking to employees directly about what they’re doing.

When you have a case of the founder’s syndrome, you’re addicted to running the show, and you’ll have a hard time separating yourself from the company you’ve built. When there are conflicts, you’re often at the center of it and hold your vision and experience over the leadership’s heads.

In the long run, your compulsion to have a say in all the nitty-gritty of your company will undermine the future of the very company that you’ve devoted your life to. The best thing you can do for its future is to back off and give your successor real control.

Establish a timetable to disengage yourself from the operating decisions and set some firm rules about this transition. Spend increasingly more time away from the business and pursue other interests. Start to envision a world in which your next ventures or leisure activities will become the principal focus of your life.

Idea for Impact: Know when your work is over and when it’s time for you to move on to other things. Grooming exceptional talent to take over the business you’ve built and gradually letting go of control is one of the most challenging things a founder will ever do. If done well, it’s the most transformative you can do for your business.

Don’t Over-Measure and Under-Prioritize

December 27, 2021 By Nagesh Belludi Leave a Comment

There’s a difference between what you can measure and what you must prioritize.

If you let the data drive the process, you’ll end up with an abundance of metrics that you don’t really know what to do with. Don’t build metrics based on what is easy to measure instead of measuring what matters.

Don't Over-Measure and Under-Prioritize While you might want to track many metrics, you need to prioritize a few of them—just the ones that matter most for your team. Start with strategic goals, and frame the data collection and analysis around those goals. Be clear about these goals in your internal communications.

Idea for Impact: The more you measure, the less prioritized you can be. Don’t fall into the trap of trying to measure everything. Focus on developing reliable metrics and models that consistently link the data to your team’s performance. Measure what matters.

Why Amazon Banned PowerPoint

December 23, 2021 By Nagesh Belludi Leave a Comment

One of the distinctive features of the Amazon management system is its use of the long-form to facilitate decision-making. Jeff Bezos has claimed that banning PowerPoint presentations—more specifically disallowing bullet points for sharing ideas—as Amazon’s “probably the smartest thing we ever did.”

Since June 2004, Bezos has forbidden bullet points and PowerPoint at a senior leadership level. Instead of presentations, teams are expected to iterate an approach to sharing information that involves writing memos of running copy, usually a “six-page, narratively-structured memo.” Meetings typically begin in silence as all participants sit and read the memo for up to half an hour before discussing the subject matter.

Ram Charan and Julia Yang’s The Amazon Management System (2019) reproduces the original email from Bezos explaining this dictum:

Well-structured, narrative text is what we’re after, rather than just text. If someone builds a list of bullet points in Word, that would be just as bad as PowerPoint.

The reason writing a good four-page memo is harder than ‘writing’ a 20-page PowerPoint is because the narrative structure of a good memo forces better thought and better understanding of what’s more important than what, and how things are related.

PowerPoint-style presentations somehow give permission to gloss over ideas, flatten out any sense of relative importance, and ignore the interconnectedness of ideas.

Using memos may seem counterintuitive in an age when communication is increasingly visual. However, long-form has a way of forcing rigor to think through ideas properly, reconcile viewpoints pro and con, iron out logical inconsistencies, and consider second-order consequences.

Bezos’s approach is brilliant not just because sentences and paragraphs enable a certain clarity in thought and exchange of ideas. It also inhibits some of the usual shortcomings of brainstorming meetings, viz., interruptions, biases that initiate groupthink, and the tendency to reward rhetorical ability over substance. Forcing all meeting attendees to read the memo in real-time prevents them from pretending to have read it before a meeting and then bluffing their way through the meeting.

Idea for Impact: Think complex, speak simple, decide better.

Bullet points and “decks” are often the least effective way of sharing ideas. Having a narrative structure allows you to clarify your thinking and provide a logical, sequenced argument to support your ideas.

Why Sandbagging Your Goals Kills Productivity

December 2, 2021 By Nagesh Belludi Leave a Comment

Sandbagging is managers believing they can accomplish more if they lower the bar and set goals their team can easily hit. Sure, managers often purposely set comfortable goals so that there’s room for “under-promise and over-deliver.”

Why Sandbagging Your Goals Kills Productivity Setting low goals may appear a clever strategy, but it’s a recipe for underperformance. Sandbagged goals don’t demand much in the way of performance when managers already know precisely how their teams will achieve the goals.

However, sandbagging can let teams down. Under-setting goals actually does what it’s created to avoid—teams eventually find such easy goals boring and demotivating. Low goals require little and inspire less, and ultimately undercut productivity. According to this study by Chancellor University’s Steve Kerr and Douglas Lepelley, when goals are fixed “too low, people often achieve them, but subsequent motivation and energy levels typically flag, and the goals are usually not exceeded by very much.”

Idea for Impact: To generate the greatest levels of effort and performance, set demanding goals outside your team’s comfort zone, but not so challenging and unattainable as to break your team’s morale. Aiming to achieve extraordinary things—hitting the farthest target and missing—can often be more worthwhile than successfully hitting a easy target.

Don’t Demonize Employees Who Raise Problems

October 21, 2021 By Nagesh Belludi Leave a Comment

Don't Demonize Employees Who Raise Problems

One of the traps of successful leadership is being surrounded with “yes men.” Your team could hesitate to challenge your decisions, no matter how bad or mistaken they may be.

Hearing what others rally think can give you a valuable perspective. Nevertheless, it’s not really in human nature to invite others to inform you how—and why—you’re wrong. Human nature is such that we all want to hear nice things about ourselves and be reassured that we’re on the right track.

“When in doubt, keep your mouth shut,” indeed

Employees are terrified to speak up owing to the need for self-preservation. The apparent risks of speaking up are very personal and immediate, especially in comparison to some potential benefits to your organization someday. Employees impulsively play it safe.

Even if your employees are more knowledgeable, they may think twice before giving you candid feedback, especially if you’ve demonstrated tendencies of being vindictive, penalizing—even reprimanding publicly or sacking—anybody with a dissenting view.

Disciplining employees who raise problems only exacerbates the problematical frame of mind around a successful leader. It promotes the toxic culture of unquestioned power. As the American general and diplomat Colin Powell reminded in a famous speech at Sears headquarters, “The day your people stop bringing you their problems is the day you have stopped leading them. They have either lost confidence that you can help them or concluded that you do not care. Either is a failure of leadership.”

Idea for Impact: Cultivate a culture in which psychological safety thrives.

Create a work environment where your employees aren’t afraid to speak up and express their concerns. People will stick their neck out only if they sense a low psychological threat level.

Leading Teams

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Idea for Impact: Think complex, speak simple, decide better.

Wondering what to read next?

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“When in doubt, keep your mouth shut,” indeed

Idea for Impact: Cultivate a culture in which psychological safety thrives.

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