Right Attitudes

Ideas for Impact

Managing People

The Poolguard Effect: A Little Power, A Big Ego!

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Even Petty Power Corrupts: Authority Can Warp Behavior

The Poolguard Effect: A Little Power, A Big Ego! Ever wonder why some folks with a little authority, but not much real status, tend to throw their weight around? They often become overconfident, controlling, and bossy. This phenomenon, known as “hubris syndrome,” can lead to micromanaging, unnecessary rules, and a real disconnect from the people around them.

Even in lower-level jobs, you can see these power trips in action. For instance, rub a TSA agent the wrong way, and you might get flagged for extra screening. Summer pool guards can be overly strict with kids and parents who don’t show them the proper respect. In bureaucratic offices, clerks and supervisors frequently impose petty rules just to flex their authority.

These power trippers rely on control to boost their fragile egos. Power tends to amplify self-importance, making people more likely to act in a domineering way—something we often sum up with, “power corrupts” or the “authority bias.

Power Increases People’s Sense of Entitlement

This anecdotal observation is backed by a study titled “The Destructive Nature of Power Without Status.” The researchers argue that neither power nor low status alone leads people to mistreat others; it’s the combination of the two that increases the likelihood of abuse.

We predicted that when people have a role that gives them power but lacks status—and the respect that comes with that status—then it can lead to demeaning behaviors. Put simply, it feels bad to be in a low-status position and the power that goes with that role gives them a way to take action on those negative feelings.

One way to prevent these toxic power dynamics is to ensure that everyone feels respected and valued, regardless of their role. According to the study, “respect assuages negative feelings about low-status roles and encourages positive interactions with others.” In other words, courtesy pays off!

Notes

  • Some people despise anyone they suspect is trying to pull the strings or exert power over them.
  • Consider the 1971 Stanford Prison Experiment, where a group of students was assigned roles as either prisoners or guards in a simulated prison. Despite knowing they were part of an experiment, the “guards” subjected the “prisoners” to humiliating treatment. According to the researchers, this behavior stemmed from the guards’ desire for respect and admiration, which they felt was lacking in their interactions with others. This controversial experiment was later depicted in a 2015 docudrama.
  • This concept can be compared to the Napoleon Complex, where shorter men may overcompensate for their height through social aggressiveness, despite the fact that Napoleon himself was not actually short.
  • Cf. The “Waiter Rule” states that how you treat seemingly insignificant people says a lot about your personality and priorities.

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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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Executive Compensation: Pay Them Well, But Not Too Well

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Our executive compensation system is broken. Surveys show that the average public company CEO compensation is many hundred times that of the average employee. This gaping disparity in pay vis-à-vis the relative value they bring to their organizations is a moral embarrassment to our society, a point that wasn’t lost on the Occupy movement of yesteryear.

The debate over executive pay won’t die away anytime soon. As election year approaches, grandstanding politicians are vying to outdo each other with pledges to implement pubic policies that limit executive compensation, whereas theorists argue that, in a market economy, compensations should be set by supply and demand for executive talent.

The latter position is commonly echoed by company boards and executive compensation consultants—both of whom owe their cushy jobs to the CEOs and their top teams. They assert that leaders need to be provided with personal incentives to attract and motivate them.

Strangely enough, such incentives often demotivate the leaders’ followers. Financial incentives that are directed disproportionately to the leader in isolation often prove downright counterproductive.

Leadership is an outcome of the relationship between leader and follower, and excessively compensated leaders do not engender followership effectively.

This comports with financier J. P. Morgan‘s observations at the start of the twentieth century that the only characteristic common to his failing clients was a tendency to overpay those at the top. As Peter Drucker commented in The Frontiers of Management (1986,)

[J. P. Morgan found] eighty years ago that the only thing the businesses that were clients of J. P. Morgan & Co. and did poorly had in common was that each company’s top executive was paid more than 130 percent of the compensation of the people in the next echelon and these, in turn, more than 130 percent of the compensation of the people in the echelon just below them, and so on down the line. Very high salaries at the top, concluded Morgan—who was hardly contemptuous of big money or an “anticapitalist”—disrupt the team. They make even high-ranking people in the company see their own top management as adversaries rather than as colleagues…. And that quenches any willingness to say “we” and to exert oneself except in one’s own immediate self-interest.

Idea for Impact: Employees’ efforts are devalued markedly under conditions of gross inequality. Pay leaders well (if you pay peanuts, you’ll get monkeys,) but not too well.

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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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How to Stop “Standing” Meetings from Clogging Up Your Time

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Monthly staff conferences, progress updates, weekly sales calls, and other regularly scheduled “standing” meetings, essential though they may be, tend to be wasteful, especially so when they’re convened per tradition and attended out of an obligation.

The beginning of the year is a great time to examine all the standing meetings that you’re invited to. Review your calendar and consider the RoI of each standing meeting. Make each one of those meetings defend the use of your time—and your employees’ time.

Ask how else you could accomplish the goals of each meeting efficiently. If you must hold a meeting, remind all its participants of the reasons for gathering, and check if the meeting—and the frequency—still serves that purpose. Rewrite the charter of these meetings if necessary. Look at ways to complete the meetings more efficiently—perhaps in half the time, half as frequently, or with half the people.

For instance, a design team may convene for twice-a-week status reports at the project launch while there may be many decisions to make. Once the early frenzy subsides, only a monthly meeting may be justified, complemented by frequent status updates shared via email.

Idea for Impact: Don’t keep going to every meeting just because you’re invited, or because you think you have to.

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A Guide to Your First Management Role // Book Summary of Julie Zhuo’s ‘The Making of a Manager’

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First-time managers are often unprepared for—even unaware of—the responsibilities and challenges of being a manager. This is particularly true at fledging startups that don’t have bonafide HR departments to guide their novice managers nor can afford management coaches. Besides, it takes a new boss a year or two to learn the basics and become comfortable in his/her new role.

When Facebook was small enough and “the entire company could fit into a backyard party,” 25-year old product designer Julie Zhuo was asked to become a manager. Zhuo had started at Facebook as its first intern and then gone full-time. Having no prior managerial experience, she acted how she thought managers were supposed to act and made many mistakes. In due course, she found joy in the role, expanded her skill set, and evolved to become Facebook’s VP of product design.

In The Making of a Manager: What to Do When Everyone Looks to You (2019,) Zhuo has chronicled her experiences from ramping-up into management and getting to know herself better. It’s the book she wishes had been there for the novice manager that she was.

Zhuo offers many hard-earned insights that only time in the trenches can reveal:

  • Operate from first principles. “Your job, as a manager, is to get better outcomes from a group of people working together.”
  • Not everyone is cut out for a managerial responsibility. “Being a manager is a highly personal journey, and if you don’t have a good handle on yourself, you won’t have a good handle on how to best support your team.”
  • Let go of your old “individual contributor” role and make the shift to being the boss. Don’t spend time trying to do the work. Invest your time in coaching, supporting, and developing employees. Don’t run interference between them.
  • Discover your decision-making proclivities. Map out your strengths and weaknesses. “Great management typically comes from playing to your strengths rather than from fixing your weaknesses.”
  • Realize that the source of your power as a manager is everything but formal authority. Respect trumps popularity.
  • Don’t manage everyone in the same way. Learn to appreciate how distinctive each individual is in what he/she wants from work and what animates him/her to work well.
  • Trust is a critical ingredient in relationships. “Invest time and effort into creating and maintaining trusting relationships where people feel they can share their mistakes, challenges, and fears with you.”

'The Making of a Manager' by Julie Zhuo (ISBN 0735219567) Zhuo offers practical—if basic, but sufficient—advice for setting a vision, assessing the culture, delegating problems, giving feedback, aligning expectations, setting priorities, establishing a network of allies and confidants, hiring cleverly, and other responsibilities of leading a team. She delves into many difficult circumstances she’s encountered, e.g., handling previously-peers-now-employees whom she passed over for a promotion.

Recommendation: The Making of a Manager is an excellent primer for novice managers. It offers an insightful, practical, and relevant playbook for making the transition from being an outstanding individual contributor to becoming a good manager of others.

Complement with Andy Grove’s High Output Management (1983,) Loren Belker et al.’s The First-Time Manager (2012,) and Michael Watkins’s The First 90 Days (2013.)

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How to Get Your Budget Through

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  1. Be familiar with your company’s procedures and criteria for approving and managing capital expenditures. Your management will require a compelling return-on-investment (ROI) study (net present value, payback, breakeven, or internal rate of return estimates) vis-à-vis explicit or implicit hurdle rates.
  2. Establish clear links between your budget and corporate strategy. If your management can see the real benefits to the business, they’ll find the costs easier to absorb. Amazon’s customer-oriented culture requires every proposal for a new feature, product, or service to be pitched by means of a “Mock Press Release” arguing how a hypothetical Amazon customer would first learn about the feature and its utility.
  3. Don’t just roll your budget over from the previous year adding a certain percentage “and then some.” Many companies have adapted a cost-management tool called “Zero-Base Budgeting” that requires you to justify each line item in your budget as if it were an entirely new claim for an entirely new project.
  4. State your assumptions explicitly. Prepare worst-case and best-case scenarios to augment realistic forecasting of the future and help prudent decision-making. Keep your budgets ambitious but realistic.
  5. Allow room for contingencies. Avoid rigidities that could inhibit the quick and effective response to an unexpected event. Bring your contingency planning into the open for a careful review.
  6. Add some fat, but not too much. Keep this in your back pocket, but be ready to make some cuts by knowing what their impact can be. Be clear and confident when questioned about any of the numbers in your budget.
  7. Explain how true you were to the previous year’s budget. Make a distinction between controllable and uncontrollable budget variances. This will build your management’s confidence in your pitch for the year ahead.
  8. Put your budget proposal to test with your team and supportive peers. Encourage them to ask all the difficult questions they can imagine. They may not only know where the skeletons are hidden and help you with the answers you’ll need, but also become indispensable allies in getting your budget approved.
  9. To persuade each member of management, know what matters to him/her and link your budget to his/her objectives. Discuss your budget with the key decision-makers separately before a group discussion. (Management consulting firm McKinsey calls this technique “pre-wiring.”) By getting each participant’s buy-in, you can count on his/her support and avoid surprise reactions and disagreements.

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Etiquette: How to Tell Someone Their Fly is Down?

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What do you do if you notice that your boss’s fly is down? Or a manager’s undergarment is showing?

Should you tell them?

Definitely. Because they’ll want to know.

Most people would rather be a little embarrassed now in the presence of someone familiar than later in the company of clients or someone important.

Keep it simple and say, “Jeff, your fly is down.” Or “Hey Rita, your slip is showing.”

Tell them quietly and discreetly. Don’t be vague.

If you’re uneasy with speaking about this to the opposite sex, request a person of that sex to deliver the message.

You may feel briefly awkward and uncomfortable, but the consequences of not informing them could be high—especially if it becomes apparent that you were aware of the problem and said nothing.

The other person will be appreciative. You’ll gain some respect not only for limiting their exposure but also for being candid and considerate.

If they get angry, declare, “I was just trying to be helpful.”

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Going Over Your Boss’s Head After She Rejects Your Idea?

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If you’re terrified by the prospect of going over your boss’s head to pursue an idea after she’s rejected it, consider the following steps.

First, have an in-depth conversation with your boss to make sure that you’re not misreading the circumstances of getting rejected. Your boss may well have a good reason for her decision.

Ask your boss what’s lacking in your proposals.

  • Is your idea solid enough, but lacking the right support products or services to go with it? Is it feasible to implement? Will it divert valuable attention away from other initiatives?
  • Does your idea actually enhance the customer’s experience? Have you explained how your idea translates to the bottom line?
  • Do you lack credibility? Have you previously blown an assignment? Do you need to rebuild leadership’s trust in you before pitching your idea again?
  • Have you prototyped your idea? Have you tested your idea on others? Do you have data confirming your idea’s feasibility? Are you disclosing all underlying issues and potential challenges that will have to be attended?

Address the above concerns, rework your idea, strengthen your proposal, and pitch it to your boss again. Consider meeting with your peers and your managers’ peers to build some grassroots support (management consulting firm McKinsey calls this “pre-wiring”) for your idea.

If your boss rejects your idea again, handle your boss’s negative response by reiterating that you respect her judgment, but would like a go-ahead to take the idea further. Your boss may surprise you with a green light.

Think twice before stepping outside the chain of command and talking to your boss’s boss about something on your mind.

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