Right Attitudes

Ideas for Impact

Employee Development

Goal-Setting for Managers: Set Tough but Achievable Challenges

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Finding the middle ground between setting the bar too low and too high can challenge managers.

Sure, aggressive goals can spark great accomplishments, but they also can induce employees to bend or break the rules in pursuit of those goals, as the Wells Fargo and Volkswagen scandals illustrate.

When employees get comfortable with their usual tasks, it’s time to push them outside their comfort zones. New responsibilities can propel employees to take on new challenges and learn new things.

However, before giving employees new tasks, take away some of the older responsibilities they’ve already mastered. Many people feel they have an unrealistic amount of work to do already. If you aren’t prudent enough to keep your employees’ workloads in check, giving “stretch” assignments can lead to burnout, not growth.

Idea for Impact: Goals that are too high or low can be demotivating. Set goals that are challenging and inspiring but with extra effort, realistically attainable.

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

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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.)

'Nuts- Southwest Airlines' by Kevin and Jackie Freiberg (ISBN 0767901843) 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.

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.

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.

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“Follow Your Passion” Is Terrible Career Advice

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The cliché “follow your passion” is easily the worst career advice you could ever give or get.

My guidance: Don’t do something you love. Do something you’re good at, even if it may not be something you’re passionate about.

Contentment isn’t likely to come from figuring out what you love and doing it for your career. Career success really comes from doing what other people will love you—and ‘compensate’ you—for doing.

Idea for Impact: You don’t have to give up your dreams, but pursue them as a hobby. Don’t try to find a perfect job. Find a good, if not a passion-filled, career and find the gratification of pursuing your passions outside of work.

Besides, people don’t really know what reality is like until they’re doing it. Therefore, perhaps a better way to choose what you do be to follow your effort? Be flexible. Have a broad view of what you wish to achieve, and be prepared to compromise on how you make it happen. Enjoy the work that you do, and discover aspects of it you’d enjoy regardless of being paid or not. True career contentment comes from an appreciative boss, helpful coworkers, the opportunity to learn and grow, a reasonable commute, and a middle-class living.

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What To Do If Your New Hire Is Underperforming

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If a recent hire, particularly one brought into the team with high expectations, isn’t delivering, start by asking the following two questions:

  1. Is the employee in an environment that allows her to perform at her best?
  2. 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.

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How to Start a Hybrid-Remote Work Model

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As the pandemic subsides (at least for now,) many companies are summoning employees back to the office. Some companies are giving workers a combination of remote and co-located work.

To initiate a hybrid-remote model for your workplace, first reconstruct how your team gets its job done. Ask, “What activities can be remote?” instead of “what roles can be remote?”

Not every activity can be equally performed in a remote setting. Take into account the level of human and physical interaction needed for every task.

Consider breaking down business activities that were formerly bundled into a single job. Mix and match responsibilities and tasks in keeping with employee competencies and individual needs.

Every employee responds to work circumstances differently. Some employees are eager to return to work—especially if they’ve struggled with blurring home and office during the pandemic, or if they fear disadvantages such as a lack of visibility for promotions.

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Create a Diversity and Inclusion Policy

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The moral and business cases for diversity are well known—a diverse and inclusive workplace earns deeper trust and more commitment from their employees.

Having a diversity and inclusion policy is simply the right thing to do—leaders have to make their values and intentions clear.

As a company, you’re not legally required to have a written diversity and inclusion policy. Nevertheless, it’s a good idea to create and actively use one.

Diversity and inclusion are ongoing initiatives—not one-off training. (Sadly, diversity classes are sometimes just a tactic for reducing employee lawsuits.) A policy encourages your employees to treat others equally with civility and decency and helps managers value employees for their strengths.

In many discrimination claims, employers may have a defense if they can show that they took all reasonable steps to deter discrimination. A comprehensive policy and recent appropriate training can help employers distance themselves from liability for acts such as harassment by an individual perpetrator employed by your company.

A policy also demonstrates that your company takes its legal and moral responsibilities towards being a diverse and inclusive employer earnestly.

Idea for Impact: A strong diversity and inclusion policy can help your company embed good practices—not only across your organization but also throughout your supply chains, including the customers and the communities your company serves.

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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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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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How to Develop a Vision for Year 2020?

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Four Rules for Priority-Setting

As you think about what you want to achieve in the New Year, consider these four rules for priority setting laid down by the original management guru Peter Drucker in his seminal The Effective Executive (1966; my summary):

Courage rather than analysis dictates the truly important rules for identifying priorities:

  1. Pick the future as against the past;
  2. Focus on opportunity rather than on problems;
  3. Choose your own direction—rather than climb on the bandwagon; and
  4. Aim high, aim for something that will make a difference, rather than for something that is “safe” and easy to do.

How to Develop a Vision for 2020?

The first thing to do before thinking too far ahead in the future is to identify what success really means to you. Ask yourself, “It’s 31-Dec-2020 and the year 2020 is almost over. I am getting ready to celebrate the turn of the year with a tremendous sense of accomplishment. What have I achieved?”

Visualize a year 2020 wherein everything has turned out the way you’ve wanted. You have given it your best, worked your hardest, and achieved all your goals. Now write down what you imagine.

Take the time to think through and develop a clear picture of where you want yourself and your work- and personal lives to be in three months, six months, and one year.

This exercise is generally effective at helping folks differentiate between tasks that simply feel urgent or top-of-mind from those that are truly important.

Idea for Impact: Getting clear on your vision will help you create a path that feels the most meaningful, stimulating, and fulfilling to you.

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Some Lessons Can Only Be Learned in the School of Life

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How Anil Ambani Learned the Ropes of Doing Business in India

In the Fall of 1982, Anil Ambani, scion of one of India’s wealthiest family, returned home to Mumbai, then Bombay, after attending the University of Pennsylvania’s Wharton School.

Anil had fast-tracked through his two-year MBA program in less than 15 months.

He met up with his father Dhirubhai Ambani and announced, “Look, Dad, I’ve become an MBA, and I’m going to take a break since I worked hard. I will see you in the New Year.”

Dhirubhai asked, “I am very happy and delighted that you accomplished this. Since I did not go to any formal school or college, I do not have any degree, why don’t you tell me, from your learning at Wharton, what does an MBA stand for?”

Smug and self-satisfied, Anil replied, “That’s simple. Master of Business Administration.”

Dhirubhai countered, “An MBA represents Manē Badhā Āvō che,” (Gujarati for “I am know all.”) He explained,

You are entering India, and you need to Indianize your MBA … at Wharton School, did they teach you about customs duties, excise duties, income tax, sales tax, Parliament?

Do you know about a zero-hour question, a call-attention motion, and the difference between a starred question and an unstarred question in the Indian Parliament?

If you don’t get to know all these things, let me assure you, all your formal education is not going to help you. You need your practical Indian MBA. And I am going to create that learning environment for you so that you can get the exposure.

A formal education doesn’t necessarily teach you everything about how to navigate the real world

Dhirubhai Ambani, the prototypical crony capitalist that he was, was highlighting the importance of learning the ways and means of doing business in pre-liberalization India.

One must note that Ambani’s extraordinary rags-to-riches story was a blend of cunning, street smartness, audacious risk-taking, and an unparalleled knack for bending the rules through powerful politicians and bureaucrats. As controversial as he was, Ambani must be understood in the socio-political context of India’s post-Independence industrial milieu. He artfully exploited the opportunities those times offered.

Idea for Impact: Formal education cannot complete the kind of real-world operative skills that you need

If you’re truly serious in your desire to get ahead in business, you will need a broader grasp of your chosen discipline than you can get from formal education.

  • Look, listen, learn. Every industry, company, organization, and team has its own culture. Spend time observing the winners: what does success look like? Who holds power, and how are they persuaded? What are the traits of people who get ahead? Emphasize developing skills in line with the winners.
  • Develop a network of people who can potentially lend a hand or bail you out of a jam. Invest in the people who will listen to your ideas and support your ambitions. Get to know peers at all levels to build a support base. Any person may have the knowledge and the allegiances that they can put to work for you if they’re so inclined.
  • Discover how to make the most of the circumstances you’re dealt with. Don’t manipulate others for your own devices in a Machiavellian sense—although, occasionally, you may need to use duplicity for respectable purposes, i.e. where certain ends can justify certain means.

Remember, the political payoff for fostering and nurturing relationships, and for developing a vast reservoir of skills and experiences, may take months, years, or even decades.

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