Great Manager

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

June 25, 2020 By Nagesh Belludi Leave a Comment

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.

Executive Compensation: Pay Them Well, But Not Too Well

January 23, 2020 By Nagesh Belludi Leave a Comment

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.

How Can a Manager Get Important Things Done?

January 13, 2020 By Nagesh Belludi Leave a Comment

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.

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

December 19, 2019 By Nagesh Belludi Leave a Comment

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.

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

December 16, 2019 By Nagesh Belludi Leave a Comment

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.”

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.)

Don’t One-up Others’ Ideas

October 15, 2019 By Nagesh Belludi Leave a Comment

A manager who has the tendency to put his oar in his employees’ ideas ends up killing their ownership of ideas. This diminishes their motivation and performance.

When employees feel disrespected or unappreciated, survival instincts will kick in—employees turn inward and stop participating fully in their teams. It will only erode their commitment and led to poor results.

People Tend to Reject Ideas Offered by Others in Favor of Their Own

In the bestselling What Got You Here Won’t Get You There (2007,) the celebrated leadership coach Marshall Goldsmith describes this behavior as the tendency to “add too much value.”

If you’re inclined to get wrapped up in adding your two cents and improving the quality of an idea a little, you may devalue an employee’s commitment to execute the idea:

Imagine an energetic, enthusiastic employee comes into your office with an idea. She excitedly shares the idea with you. You think it’s a great idea. Instead of saying, “Great idea!” you say, “That’s a nice idea. Why don’t you add this to it?” What does this do? It deflates her enthusiasm; it dampers her commitment. While the quality of the idea may go up 5 percent, her commitment to execute it may go down 50 percent. That’s because it’s no longer her idea, it’s now your idea.

Effective Coaching is Helping Others Discover Insights

Focus on helping others discover insights—not by solving the problem for them, but by helping them improve how they’re thinking about the problem.

If you have an idea that the other must hear, don’t tell them immediately. Use Socratic questioning to tease the idea out of them.
Examine how you hand out ideas. Resist the temptation to add your advice. Before you propose an idea, pause and ask yourself, “Is it worth it?”
Avoid declarative statements such as “you should …” or “I think … .”
The higher up you go in an organization, the more your suggestions become interpreted as orders.
Don’t marginalize the concerns of your team members in the interest of moving your ideas forward. Ignoring employees’ inputs can send a message to the entire team that you’re not actually looking for their creative ideas, but that you’ve got your own agenda and just want them to rubberstamp it.
Get your team involved early. People are more motivated to do the things they have to do if they are part of the planning and strategy.

Idea for Impact: Improve your team performance by encouraging better thinking, not by handing out advice.

Don’t give unsolicited advice. Don’t make team decisions to which you—but nobody else—is committed. Learn to persuade others to see things your way by tapping into their talents, passions, and abilities.

Remember, being an effective manager is not about winning yourself; it’s about making other people winners.

Fire Fast—It’s Heartless to Hang on to Bad Employees

August 27, 2019 By Nagesh Belludi Leave a Comment

Firing is About an Underlying Commitment to Retaining Great People

The former General Electric leader Jack Welch earned the moniker “Neutron Jack” for sacking some 100,000 employees in the early years of his tenure as chief executive. Welch defended the dismissals by emphasizing that it would have been far more heartless to keep those employees and lay them off later when they had little chance of reinventing their careers. The dismissals were part of his deliberate efforts to establish a corporate culture that emphasized honest feedback and where only the “A players” got to stay.

Many Fired Employees Feel Surprised That the Axe Didn’t Fall Sooner

Managers know that ending a bad fit sooner is better than doing it later. Firing a bad employee is often better for both the employee leaving and the employees remaining.

Then again, many managers hesitate because firing is awfully difficult. No one likes to fire people. Looking an employee straight in the eye and telling he’ll no longer have a job is one of the harshest things a manager will ever have to do.

Besides, some managers are so uncomfortable with conflict that they are unwilling to deal directly and honestly with a problem employee, not to mention of confronting the risk of a wrongful termination claim.

If an Employee is Not Working out for You, Fire Fast

By holding on to a bad employee, you are really doing a disservice to the employee. Forcing a person to be something he’s are not, and giving him the same corrective feedback—week after week and quarter after quarter—is neither sustainable nor considerate. Trying to keep the employee in the wrong role prevents his personal and professional evolution.

Give the employee a chance to turn the situation around—people can change.
Try to find him an appropriate role within your company. Recall the old Zen poem,

Faults and delusions
Are not to be got rid of
Just blindly.
Look at the astringent persimmons!
They turn into the sweet dried ones.

However, if the employee is a truly bad fit, reassigning him just shifts the problem to a different part of the company.
If your efforts to remediate a bad employee haven’t worked out, cut your losses and fire him promptly. Help the employee move on to a job or a company where the fit is much better.

Idea for Impact: It is much worse to retain someone who is not suited for his job than it is to fire him. Help him find a new role quickly and land on his feet.

How to Hire People Who Are Smarter Than You Are

June 27, 2019 By Nagesh Belludi Leave a Comment

Apple’s Steve Jobs frequently pointed to the risk of a “bozo explosion,” which is what happens within a company that makes the mistake of hiring B-grade managers early on. As the company expands, these bozos—Jobs’s label for well-meaning, but less-competent managers—tend to emerge through the ranks and run important divisions of the company.

When bozos hire other people, they prefer to hire bozos. As entrepreneur (and bonafide Steve Jobs’s coattail-rider) Guy Kawasaki explains, “B players hire C players so they can feel superior to them, and C players hire D players.” Lo and behold, entire divisions are soon swarming with hordes of bozos.

How to Prevent a Bozo Explosion

The heuristic “hire people smarter than you” is obvious enough, but, every so often, smart people can be a terrible fit within your team.

In this Startup School 2013 interview with venture capitalist Paul Graham, Facebook’s Mark Zuckerberg offers a better heuristic to hiring and keeping smart people who aren’t jerks and can get things done:

What’s the right heuristic for determining if someone is really good? Over time, what I figured out was that the only actual way to let someone analyze whether someone was really good was if they would work for that person. I don’t think that needs to recurse too many levels down in the organization but I basically think that’s a really good heuristic. I believe that. If you look at my management team today if we were in an alternate universe and I hadn’t started the company it would be an honor to work for any of these people. I think if you build a company that has those kind of values, rather than just saying ‘oh I want to hire the best person I can find’ or whatever, if you hold yourself to that standard then I think you’ll build a pretty strong company.

Idea for Impact: Mediocre managers often feel threatened by employees who seem more intelligent than they are, and could potentially pinch their jobs. In contrast, a wise manager knows that she reveals well on her own ability to discover and nurture talent.

As with advertising tycoon David Ogilvy’s Russian nesting dolls metaphor for building “a company of giants,” insist that managers hire folks who are better than themselves. For example, a product manager should hire a designer who is better at design than the manager is, not worse.
Insist that each interviewer ask themselves of job candidates, “Would I want to work for this person?”
Remember, the best don’t come cheap.

How to Prevent Employee Exhaustion

November 8, 2018 By Nagesh Belludi Leave a Comment

Feeling exhausted, irritated, unhappy, and lacking in control are all signs of burnout—a temporary decline in an employee’s well-being.

If you notice a drop in energy, motivation, or productivity, try these simple ways to help combat employee exhaustion:

Clarify expectations
Where possible, lower the standards and relax the deadlines. Encourage less perfection.
Give employees the right tools and resources that they need to do their job effectively
Allocate some tasks to other employees
Appreciate, reward, recognize
Give employees some time off
Reduce travel and meetings
Offer counseling and mentoring

Employee stress and problems at work that are not dealt with effectively can quickly spill out into other parts of an employee’s life. In fact, many marriages go bad when stress at work is at its worst: people use up all their willpower on the job; their home lives suffer because they give much to their work.

Make employee welfare a key area of focus to promote better work environments and keep employees engaged.

How Far You’ve Come

August 2, 2018 By Nagesh Belludi Leave a Comment

While browsing through advertising genius David Ogilvy’s The Unpublished David Ogilvy, I stumbled across a mention to a 1964 letter of introduction that Ogilvy received from a gifted job-applicant.

Ogilvy calls this “the best job application letter I have ever received.” The first paragraph announces,

My father was in charge of the men’s lavatory at the Ritz Hotel. My mother was a chambermaid at the same hotel. I was educated at the London School of Economics.

Ray Taylor, that aspirant, became an Ogilvy & Mather copywriter.

It reminded me of a quotation from the American priest Henry Ward Beecher: “We should not judge people by their peak of excellence; but by the distance they have traveled from the point where they started.”

Idea for Impact: Appreciate how far you’ve (and others have) come.

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Great Manager

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

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Wondering what to read next?

Distinguish the Variances That Require a Manager’s Attention

Managers Just Can’t Do Everything

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

Wondering what to read next?

Wondering what to read next?

Wondering what to read next?

People Tend to Reject Ideas Offered by Others in Favor of Their Own

Effective Coaching is Helping Others Discover Insights

Idea for Impact: Improve your team performance by encouraging better thinking, not by handing out advice.

Wondering what to read next?

Firing is About an Underlying Commitment to Retaining Great People

Many Fired Employees Feel Surprised That the Axe Didn’t Fall Sooner

If an Employee is Not Working out for You, Fire Fast

Wondering what to read next?

How to Prevent a Bozo Explosion

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Wondering what to read next?

Wondering what to read next?