Right Attitudes

Ideas for Impact

Leading Teams

Leadership is Being Visible at Times of Crises

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It’s terrible optics for an elected official to leave his constituency while it’s in the midst of a crisis.

In a grave slip-up for an ambitious politician, Texas Senator Ted Cruz’s giving a lame excuse initially for his Cancún joint made him look insensitive. He was expected to stay and endure alongside his constituents, who were suffering from Texas’s recent freezing temperatures and blackouts.

Of course, Cruz didn’t do anything that hurt anybody, apart from drawing police resources away to shepherd him through the airport. Cruz’s argument—sensible in its own way—was that all he could do was be in regular communication with state and local officials who’re spearheading the crisis response. After all, Cruz has no formal power in the state administration.

As a comparison, King George and the Queen Mother declined to leave London as bombs shattered their city during World War II. As an expression of concern, and commitment to the Allied cause, they even visited sites destroyed during The Blitz of 1940.

Idea for Impact: Leadership means serving as an anchor during crisis times and being available, connected, and accessible during a crisis. Leaders can’t do everything, and they need to delegate responsibilities. However, entrustment should not entail emotional detachment.

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Making It Happen: Book Summary of Bossidy’s ‘Execution’

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It’s back-to-basics in Larry Bossidy and Ram Charan’s Execution: The Discipline of Getting Things Done (2002.) Bossidy is a retired business executive (General Electric, AlliedSignal/Honeywell,) and Charan is a distinguished business consultant.

Execution was the best-seller that defined the corporate zeitgeist in America after the dot-com meltdown and the Enron and WorldCom scandals. Catchphrases such as “execution,” “shaping the broad picture,” “straight talk,” and “robust action” became caricatures of how American companies got things done.

Here’s a distillation of the main ideas in Execution.

  • Ideas are well and good, but how thoroughly you implement them is what “determines success in today’s business world.” Companies are hindered by the gap between what the company’s leaders want to achieve and their ability to achieve it. “The real problem is that execution just doesn’t sound very sexy. It’s the stuff a leader delegates.”
  • There’s no room for fluffiness if you want to get things done. Straight talk is “live ammo.” “You need robust dialogue to surface the realities of business the kind that can leave people feeling bruised if they take it personally.”
  • The leader sets the tone and leads the change. A good motto to follow is, “Truth over harmony.” Focus on “raising the right questions, debating them, and finding realistic solutions.” Avoid discourses that are “stilted, politicized, fragmented, and butt-covering.” “Candor helps wipe out the silent lies and pocket vetoes, and it prevents the stalled initiatives and rework that drain energy.”
  • Informality is critical to candor. Formal and ceremonial conversations and presentations leave little room for debate. Too often, communication is scripted and predetermined. Informality encourages questions and is more likely to promote intuitive and critical thinking.
  • Strategic, people, and operational processes are the building blocks for execution—and they’re interrelated. “The foundation of changing behavior is linking rewards to performance and making the linkages transparent.”

Recommendation: Skim Larry Bossidy and Ram Charan’s Execution: The Discipline of Getting Things Done (2002.) Most of the book is about setting expectations, holding people accountable, and following through. There’re no instructive case studies. There’re no new magic pills. The substance is genuinely elementary, and the tone self-righteous. You don’t need a book for exhortations like “put the right person in the right job,” “know your people and your business,” “test critical assumptions,” “follow-through,” “deal with non-performers,” and “expand people’s capabilities through coaching.”

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How to Manage Overqualified Employees

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Some employees are overeducated and overqualified—or think they are—for the jobs they are doing.

Such employees will find their roles not demanding enough to keep them occupied. They may not feel fully engaged in those tasks and responsibilities that they judge “beneath” them.

Toffee-nosed employees can create team tension. They can develop negative attitudes, such as a sense of entitlement about their skills (remember the FedEx “Even an MBA Can Do It” advert?) or resentment through boredom. That frustration and disillusion can ripple out and bring everyone else in the team down.

Here are two guidelines for managing overqualified employees:

  1. To keep overqualified employees engaged, allow more autonomy, and assign them more creative assignments. Delegate longer-term projects or have them collaborate with other teams within the company. Though, be mindful that this may create even more resentment in the team towards the perceived overqualified employees. Discuss with the team why some people have been chosen for those special assignments.
  2. Work together with the human resources staff and help the overqualified employees chart out individualized paths for climbing the corporate ladder and reach their potential. Find ways to help them acquire new skills and get exposure to other parts of the organization. Coach them to apply for roles that possibly do not yet warrant their experience and expertise. Expand their leadership capacity by assigning training and mentoring responsibilities.

Idea for Impact: Nurturing and keeping overqualified employees can create a strong foundation for tomorrow’s management team.

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The Key to Reinvention is Getting Back to the Basics

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Leaders of turnarounds often succeed by putting the fundamentals on the table and insisting upon a greater emphasis on the basics.

The turnaround that CEO Brian Niccol has cooked up at Chipotle Mexican Grill [CMG] makes a great case study of the back-to-the-basics approach to management.

The Basics Often Get Lost in a Speedy World

To set the context, here’s a concise history of Chipotle: founded in 1993 by chef Steve Ells, Chipotle found great success in marketing its near-local sourcing of fresher ingredients, using naturally-raised proteins, and on-premises cooking.

Chipotle grew swiftly and established itself as the flag-bearer of the fast-casual trend that spurned fast-food orthodoxy. McDonald’s was a major investor from 1998 until 2006 when Chipotle went public.

In 2015, Chipotle’s star began to fade away when hundreds of its customers got sick from infections with salmonella, E. coli, and norovirus. Worried that this short-term rough patch can turn into a long-term downward slide, the company’s board recruited Niccol from Yum Brands’s Taco Bell division in 2018.

CEO Brian Niccol made Chipotle Fresh Again by Focusing on the Basics

In two short years as CEO, Niccol has returned Chipotle to industry-leading performance and positioned the company for above-industry growth. His Barron’s ‘Streetwise’ interview with the inimitable Jack Hough provides an insight into how strategic business leaders think and make decisions:

When I arrived at Chipotle, I discovered that it was a company full of ideas; it lacked discipline and the focus to figure out the few things we wanted to do really well. Chipotle had lost focus on executing the basics of running a great restaurant.

We modernized food safety practices and emphasized avoiding contamination and educating food suppliers and farmers.

We went back to following the original culinary on how to make great food: getting the right char on the chicken, the right amount of lemon, and the right amount of chopped jalapenos.

Idea for Impact: Getting the basics right is often the first essential step to building a greater organization.

So many companies fail on their fundamentals—and don’t even realize it—especially when their businesses have grown, market conditions have changed, and the companies have taken on all sorts of complexities that have stumbled.

If you want your organization to pull through a slump or hit a new growth trajectory, consider cracking down on the basics.

Focus on your core values and your underlying business model, which are like beacons that can help steer you on the right track. Inquire why your organization exists. How should you operate? What is your market position? What matters to the organization’s mission and vision? Focus on doing the right thing—and doing it consistently over time.

A renewed emphasis on the strategic basics will put your company in the best possible position to navigate new strategic choices, as Niccol’s Chipotle has done.

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Putting the WOW in Customer Service // Book Summary of Tony Hsieh’s Delivering Happiness

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To keep your customers in the present day, you can’t be content just to please them. If you want your business to thrive, you have to produce enthusiastic aficionados—customers who’re so keyed up about how you treat them that they want to tell stories about you. These customers and their cult-like loyalty become a key element of your sales force.

'Delivering Happiness' by Tony Hsieh (ISBN 0446576220) American entrepreneur Tony Hsieh built the online retail store Zappos on the fundamental idea that great service is not a happenstance. It starts when leaders decide what kind of experience they want their customers to have—and articulate that approach in a clear mission and vision. As in the case of luxury hotel chain Ritz-Carlton, leaders keep the mission alive by empowering their employees to go the extra mile for the customer. Above all, when it comes from the heart, great customer service keeps customers coming back over and over.

In Delivering Happiness: A Path to Profits, Passion, and Purpose (2010,) Hsieh discusses the importance of cultivating happiness as a launch pad to better results for your business.

How Zappos Profits from The Happiness Business

How Zappos Profits from The Happiness Business

Hsieh did not create Zappos. He was one of the startup’s initial investors but got sucked in to help the original founder after six years. Zappos operated in survival mode for a while. As it began to outlive its financial struggles, Hsieh and his leadership team went about building an intentional corporate culture dedicated to employee empowerment and the promise of delivering happiness through a valued workforce and devoted customers.

Over the years, the number one driver of our growth at Zappos has been repeat customers and word of mouth. Our philosophy has been to take most of the money we would have spent on paid advertising and invest it into customer service and the customer experience instead, letting our customers do the marketing for us through word of mouth.

Hsieh tells his entrepreneurial life experiences, often presenting biographical stories to make his line of reasoning. Many great entrepreneurs got started early, and Hsieh is no exception. He started with worm-farming (age 7,) button-making (elementary school,) magic tricks involving dental dams (high school,) burger joint (college,) and web-consulting (post-college) before having considerable financial success with the internet advertising firm LinkExchange (sold in 1998 to Microsoft for $265 million.)

In 2009, Hsieh sold Zappos to Amazon for $847 million under pressure from Sequoia Capital, a major financier of Zappos. As a point of reference, Hsieh later recalled,

Some board members had always viewed our company culture as a pet project—“Tony’s social experiments,” they called it. I disagreed. I believe that getting the culture right is the most important thing a company can do. But the board took the conventional view–namely, that a business should focus on profitability first and then use the profits to do nice things for its employees. The board’s attitude was that my “social experiments” might make for good PR but that they didn’t move the overall business forward. The board wanted me, or whoever was CEO, to spend less time on worrying about employee happiness and more time selling shoes.

How Zappos Fostered a Culture and a Business Model Based on the Notion of Happiness

Delivering Happiness - Tony Hsieh of Zappos Zappos’s corporate culture is guided by ten core values, which aspire to empower employees, create a sense of community in the workplace (employees are encouraged to “create fun and a little weirdness” in the office and build personal connections with colleagues,) and serve a higher purpose beyond bottom-line metrics.

  • Zappos’s core values include: deliver WOW through service (#1,) be humble (#10,) do more with less (#8,) be passionate and determined (#9,) and create fun and a little weirdness (#3.)
  • Zappos wants only those employees who really want to work for the company. All new employees attend a four-week training program that immerses them in the company’s strategy, culture, and customer-obsession. Zappos offers $2,000 to walk out at the end of the first week, and the offer stands until the end of the fourth week. Only a small number of new employees take the offer.
  • Zappos challenges all employees to make at least one improvement every week. Allowing employees to improve the tasks they’re doing and enhancing the processes that they’re responsible for executing allows them to make their jobs more meaningful.
  • Instead of measuring call center efficiency by the time each call center operator spends on the phone with a customer, Zappos developed its own scorecards. Zappos quantifies such things as the personal and emotional connections operators make with customers using measures such as measuring the number of thank you cards.

Zappos is Obsessed with Impressing Customers

By focusing on company culture, everything else—such as building a brand with sustained revenue growth, fast turnaround times at warehouses, and passionate employees—fell into place.

Happiness is really just about four things: perceived control, perceived progress, connectedness (number and depth of your relationships,) and vision/meaning (being part of something bigger than yourself.)

Recommendation: Read Tony Hsieh’s Delivering Happiness. This insightful tome is brimming with practicable ideas on customer service, building a positive company culture, best hiring practices, how to motivate and train your team, and setting business goals and values. The core elements of Zappos’s DNA—purpose, happiness, culture, and profits—are an effective framework for making happiness a business model.

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Living with Rules You Don’t Like

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As a manager, sometimes you have to enforce rules that you don’t agree with.

Try your best to empathize with the rules, and if you can’t, you have no choice to accept the rules and implement them.

No manager wants to be the bearer of bad news, particularly when it’s about something the manager disagrees with. To avoid conflict with your employees, be concise, straightforward, and empathetic. Pass on the underlying principle communicated down to you. Then assert, “I’m afraid we have to live with this rule.”

Allow for venting, but discourage debate.

To maintain respect for those who have made the decisions, you may add, “Our executives have considered other options. They’ve made the choices based on what’s best for the organization. Decisions made at the top are often the final word on a subject. Rules are the rules. It’s okay to question them and not like them, but they still need to be followed.”

Emphasize that some disputes and disagreements are worth fighting, and others just aren’t. “I certainly don’t like it any more than you do. This isn’t the choice I would have made. But, let’s live with this rule, implement the change to the best of our abilities, and focus on our work and our team.”

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Why Your Employees Don’t Trust You—and What to Do About it

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If you have trouble getting employees to trust you, perhaps one—or more—of the following reasons are to blame:

  • You don’t model what you say.
  • You make promises you can’t keep.
  • You guard and selectively disclose information.
  • You don’t allow your employees to exercise their judgment.
  • You ask for input from your employees and ignore them.
  • You seek to monitor everything—including time spent on social media.
  • You tend to shift the blame.
  • You avoid giving credit where credit is due.
  • You ignore workplace concerns and problems until they become more significant problems.
  • You have double standards (employees tend to be especially very alert to this.)

Management scholars have suggested that trustworthiness entails three attributes: competence to perform tasks reliably (your ability,) having benign intentions (your benevolence,) and acting consistently with sound ethical principles such as fairmindedness, sincerity, and honesty (your integrity.) If you can exhibit these three attributes credibly and dependably, all will trust you. Get any of these three attributes wrong, and your standing will suffer.

Here are a few actions you can take to rebuild trust within your organization:

  • Communicate openly. Listen. Value everyone’s opinions equally. Involve employees in decision-making. Be as transparent as possible.
  • Empower employees. Encourage them to use their best judgment to identify and solve problems. Don’t be unnecessarily rigid with enforcing rules.
  • Make everyone accountable. Take responsibility. Invite and listen to feedback. Communicate expectations. Invest in commitments.

Idea for Impact: Trust is reshaped—strengthened or undermined—in every encounter

If your employees don’t trust you, then they won’t do what you need them to, and they won’t stick around long.

Trust is a consequence of your actions, not merely an intention or message. Trust is truly behavioral; it is complicated and fragile. Trust must be hard-fought, hard-earned, and hard-won every day, through actions, not words.

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Great Leaders Focus on the WHY and the WHAT—Not the How

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The most effective leaders provide their employees with a heartfelt portrayal of the WHY, a precise description of the WHAT, and freedom on the HOW.

The WHY encompasses a vision in a way that matters to people. As Howard Schultz, the Starbucks tycoon once said, “People want to be part of something larger than themselves. They want to be part of something they’re really proud of, that they’ll fight for, sacrifice for, that they trust.”

The British-American organizational consultant Simon Sinek‘s passable Start with Why: How Great Leaders Inspire Everyone to Take Action (2009; a good summary) identifies the difference between “giving direction and giving directions.” Great leaders, he explains, motivate with the WHY, a deep-rooted purpose, before defining the WHAT, the product or service, or the HOW, the process.

The latter, the HOW, is to be deprioritized—effective leaders leave it to their employees to figure out.

In contrast, ineffective leaders provide specificity around HOW to complete a task but fail to share the big picture, the WHY.

Don’t live in the weeds. Have faith in the ingenuity of your employees. Give much latitude in how they do things.

Idea for Impact: Define the job. Explain the responsibility. Equip your people with the tools and skills they’ll need. Establish expectations. Identify the standards. That’s the essence of delegation.

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How Can a Manager Get Important Things Done?

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Distinguish the Variances That Require a Manager’s Attention

When critical care facilities in hospitals monitor patients’ vital signs, staff nurses are notified only when vital signs go beyond each patient’s pre-programmed range. Unless the monitoring devices sound an alarm, nurses take for granted that the patient’s condition is stable enough and will receive only routine medical attention.

The “Management by Exception (MBE)” method is the notion that a manager’s attention must be focused only on those areas in absolute need of his/her engagement.

As a rule, lower-level managers should handle recurring decisions. Only problems concerning extraordinary matters should be referred to higher-level managers.

This “exception principle” emphasizes that executives at the upper levels of an organization have serious restrictions on their time, capacity, and willpower. They should refrain from being caught up in minutiae that can be handled just as effectively by their junior managers.

A case in point: many companies establish protocols that designate the level of authorization required for purchases. Companies delegate authority carefully, prescribing spending limits for each level. For instance, a team leader’s approval is necessary for purchases of over $1,000. A department manager must approve purchases of over $5,000, the divisional leader for purchases of over $10,000, and the CEO for purchases over $50,000.

Managers Just Can’t Do Everything

The exception principle helps managers focus their attention on more worthy matters that justify their attention. Most managers hesitate to manage by exception because of the very human predisposition to focus on the immediate, tangible, and well-defined problems as against the distant, high-priority, challenging, and abstract problems.

In other words, mangers must distinguish programmed decisions from non-programmed decisions. Programmed decisions are routine activities that are well-defined and can be dealt with by using an established protocol. Non-programmed decisions are exceptional or significant endeavors that involve unfamiliar, one-time, and unstructured problems needing higher-level decision-making.

Idea for Impact: Don’t Get Lost in the Thicket of Trivia

As a manager, there are only a few things that you must do. Focus on those and delegate the rest. But keep an eye on how things are going; you are still accountable for any work you delegate.

Decentralize as much decision-making as possible. Establish protocols and standard operating procedures (SOPs) that empower your staff and enable your organization virtually to run itself.

Identify what deviations constitute as an exception and intervene only to solve significant problems.

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What Makes a Great Relationship

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Venture capitalist Ben Horowitz’s The Hard Thing About Hard Things (2014) is one of the best business books I’ve read in a long time. Here’s what he says about how he and Marc Andreessen have worked effectively in partnership across three companies over two decades:

Most business relationships either become too tense to tolerate or not tense enough to be productive after a while. Either people challenge each other to the point where they don’t like each other or they become complacent about each other’s feedback and no longer benefit from the relationship. With Marc and me, even after eighteen years, he upsets me almost every day by finding something wrong in my thinking, and I do the same for him. It works.

Close relationships—at work or home—are tough. Nothing in life prepares you for them. But the intellectual and emotional rewards of close relationships are stimuli enough for navigating these choppy waters.

Disagreement is inevitable, but it is at the heart of creative thinking and problem-solving. An unassuming disagreement—even a misunderstanding—can cause tensions to rise. Differences of opinion can turn into disputes and arguments can cascade into fights, putting a relationship at risk.

The healthiest relationships are built on a strong foundation of mutual respect. A reciprocally beneficial connection entails accepting the others, knowing their goals, supporting them to become the best version of themselves, and wanting to work through difficulties and disagreements.

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