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Transparency = Improved Bottom Line - Aldo Grech

The CEO had a great office with a great view and two great secretaries.

The secretaries ensured his diary was efficiently run, he was appropriately briefed and suitably prepared for his next appointment, especially for Board and Shareholder meetings. It was a perfectly tuned machine, always on-time, always prepared for his next high-level meeting. His Board and Shareholder gatherings were meticulously prepared by a formidable team of researchers, writers and editors behind the scenes who produced sensational shiny reports. These reports always glistened in the eyes of the Board and the Shareholders, and the well rehearsed presentations seemingly addressed the salient issues they wanted to hear. Theatre at its best. Applause assured.

What polished performances. Then, one day, he was gone!

It would seem, eventually, reality caught up with the Board who managed to look beyond the camouflaging effect of all those stylish polished reports and well rehearsed presentations. The disturbing financial results that accompanied later meetings rang sufficient bells. So, what went awry?

In one word, TRANSPARENCY.

Naturally, there are many views and answers to this question by whoever was in the organisation at that time. They each would have their own valid opinion as to what went wrong and what could have been done differently. The answers would mostly centre on technical, financial, product related or structural reasons. Indeed, they are all true and have their place.

However, we wish to explore another view of this situation from what we believe is a higher level. The CEO and, as a result, the Board were isolated and insulated from the reality of their business. The focus was pointed the wrong way. What became an endemic problem throughout the organisation was what became a focus on Protection rather than Empowerment. “Bad” news was unwelcome, just in case it accidentally made its way through to the CEO!

Feedback in real time or no time.

The case above is a true story. We have, however, exaggerated the characters, their behaviour and the outcomes to paint the necessary picture for our debate. When this situation typically occurs, it is somehow subliminal, under the radar and between the lines in the reports, emails and communications we are receiving from our teams! So you must be thinking we are suggesting mistrust in our teams? Absolutely not.... In fact, the opposite is true.

We are advocating openness and transparency which must start with us, the Leaders. Are we open to “bad” news (see article no 3). Do we truly welcome staff feedback (even if it is not what we wish to hear) from any corner of our organisation? Do we protect them from victimisation by their managers, as a result of their sharing? Or are we too busy running the business to be bothered with such pettiness! Or do we operate the ostrich model, “if I do not see it, then it must not be happening”! We do this at our own peril.

How many people who are not your direct reports do you speak with during the day? Do you make it one of your business practices to walk down, or up, to the workshop, warehouse, canteen, coffee machine to engage with any staff member where you do not dominate conversation? Do you listen instead, with interest to what staff have to say, be it chit-chat or business talk? Or do you look-down and somehow demonstrate disdain for these people that “waste company time” chit-chatting at the coffee machine? Do you judge your people’s performance by the number of hours they stay glued to their desks (and if you can stop them using the internet, the better) or do you judge their performance by their output?

Chit-chat at the coffee machine

Unless you believe that people actually turn-up to work to positively contribute, and are able to manage those few that do not (read the following article “Team Player or Team Slayer”), you end-up being a policeman with a very depressed and unproductive non-transparent organisation. Truth is that if your people are spending too much time on personal things like personal email and extensive coffee-breaks, then this tells us more about the organisation than about the people. Since we are at the helm of our organisation and leading it, then it is we who need to take full responsibility.

We challenge you to think this way. Enjoy your people by joining them in their environment and garner information when it is meaningful to them. Should you see a few time-wasters, manage them accordingly. However, if you are sensing an endemic situation, it is time to start working ON the business rather than IN it.

GREAT organisations listen to their staff

It is our experience that GREAT organisations who regularly achieve their objectives have Visionary Leaders. Those Leaders select the Right People to form their teams. They then respect them, welcome their feedback and create an open environment where ideas at the grass-roots are cultivated and explored to ensure that the organisation remains relevant and continues to grow in lock-step with their customers. And, who are the best customer advocates, if not those in our organisation who work closely, day-in, day-out with our customers.

So, go down to the coffee-machine, welcome the insight of your team and celebrate their feedback, especially when it is difficult or “Bad” news! They are offering you the springboards to success.

Certainly, the Board and Shareholders should be presented with clear and professional documents and presentations. Yet, just as importantly, nobody should need to be protected from the truth. In our experience, Great Organisations are led by CEOs and Board of Directors who operate with total transparency by supporting the organisation when most needed, in tough times with difficult results.

If you are feeling “what a load of hog-wash” while reading this article, then you are potentially resisting your biggest transformation opportunity. One that could mean less midnight oil burning for you, while achieving more, with a willing contributing team, feeling positive and achieving what you know you are able to!

Team Player or Team Slayer? - Jill Sweatman

Beware. Some of the people on your team may be holding you back. Ask the tough question – is this person a Team Player or Team Slayer? You may be surprised.

Organisational change can be executed elegantly and diligently, yet the momentum may never seem to get off the ground. Often, this is due to the action, or deliberate inaction, of one or more select individuals.

Still too many organisations tolerate and continue to support an employee who overtly or covertly undermines management. This action is fraught with long standing and severe dangers.

Recognising a Team Slayer

A typical team slayer may exhibit any of these attributes:

• They will take every opportunity to speak ill of management both inside and outside the organisation.
• The employee will operate at a tangent to the agreed and desired direction of the organisation.
• They may take no action, when clearly it is appropriate to do so. For instance, at best, a telephone on a neighbouring desk is allowed to ring.
• They may be instrumental in allowing embargoed information to be leaked to inappropriate sources who can use this to compete with or discredit the organisation or its employees.
• They can be found at the hub of every rumour mill. They may create doubt by inference about the reputation and trustworthiness of an organisation or senior management without just cause. They may use throw away lines like, "Well, if you knew the real story" or "I happen to know better and management are holding up a front".
• They may lack personal responsibility by always deferring concerns to management with no suggestion or willingness to rectify a situation.

Beware of the 'carcinogenic employee'. A carcinogenic employee is someone who has mutated to a point where they are no longer truthful with their colleagues, managers and in an advanced form, even themselves. This is a person who gathers others into their group by inciting mutations within them. They must be stopped.

The cure is not always palatable nor timely for management to accept. Yet a hard line is necessary.

Such an individual, ultimately, needs to be excised from the organisation. To do this we need to create an environment in which the individual can ask the Right questions of themselves and therefore, with Dignity and Respect, make the decision to leave of their own volition. Dignity and Respect are paramount. With suitable skilled guidance this will maintain both for all parties.

Beware the 'carcinogenic employee' who goes into remission. While this style of employee can be counselled and therefore appear to go into remission, often so much ill will has been instigated it can be an anxious time for the organisation and the individual. Has their attitude genuinely changed or will they slip back into old habits or mindsets?

Take No Prisoners

Retaining a Team Slayer can have an immeasurable and devastating effect on your bottom-line. You must take action. Make a move and take no prisoners.

An organisation can no longer afford the luxury of retaining an individual who is not at one with the purpose and values of the organisation. You have no time to lose. Damage has already been done. Ignore the temptation to retain this person because of any intelligence they may hold. Ask yourself a most important question: How much is it really costing me to keep this person?

Retain Or Release?

First of all, a solicitor familiar with the laws of unfair dismissal needs to be consulted to advise on procedures that will protect the firm.

Apart from any legal advice, I suggest the employee be counselled and given the opportunity to retain their dignity and respect - while also appreciating that the organisation must likewise be given the same courtesy.

The behaviour in question needs to be identified. The expectations of the organisation and of the employee must be clearly stated.

Discuss the strategies around the expected performance and attitude before forming agreements to move forward. If we agree that trust is the core of any worthwhile personal relationship, then once trust has gone, almost all is lost. Many times, trust can't be regained.

It's just the same in a business relationship. Once mistrust enters the equation, people become conditioned to look for inconsistencies in a world layered with anxiety and discomfort.

Team Player or Team Slayer?

Take the question seriously, very seriously. Your responsibility is to instigate the action necessary for the longevity of the organisation and the ultimate well-being of every individual, be they Team Player or Team Slayer.

Allow the changes to occur with the impetus that it deserves and support those who are willing to see the organisation move into the next chapter of its life. Have the courage to recognise those that must go and support them into arenas that best suit their talents.

Jill Sweatman is a recognised expert in Corporate Cultural Design and Change. One of her particular skills is to expertly and sensitively identify Team Slayers. She then works with organisations to retain significant monies by supporting those identified to exist with dignity and respect for the benefit of all.

“Bad” News - Aldo Grech

‘Necessity is the Mother of Invention’, I remember from my school days. Well, in business, Bad news is the spark that constantly and effectively recreates our organisations!

Bad news is Good news!

In our earlier article, we visited an organisation whose CEO was not able to get to the Bad News. His structures kept Bad News at a “safe” distance. I remember another Client stressing to me “why should I voluntarily establish a company/product Blog for all those whingers who want to complain about my product”. The answer is simple really, they will whinge anyway, except that with your Blog, you know in real time and can do something about it (or nothing if you so choose). As are Bad News, Blogs are gold mines as long as they are well managed.

Another Client, a software development house, consciously kept segregated the customer complaints database from the product development tracking and roadmap database and ensured that the 2 shall never meet, as “the customers do not realise that we have been building the best software for decades and I know better than any customer what their needs are” claimed the CEO! And at no time were the Customer Support staff allowed to share their knowledge with the software development team in case the latter were influenced by “complaining customers”.

So, let’s analyse Bad News. To start with, Bad is a very subjective and what is Bad news for one is no news for another. This is a basic premise we need to endorse before we are able to allow for the world of opportunities to open for us. In the early days of the ICT industry, regular commentary by colleagues and IT journals, about the LOW quality of the Microsoft products was commonplace. This was indeed seen as Bad News by those uncomfortable with Bill Gates’ business success. Not for Mr Gates, we imagine. What we saw was, Mr Gates creating a new industry of “resellers” that Microsoft trained and ensured they shared revenues with and that Microsoft was able to continue listening to, step by step improving the products, making them market relevant rather than technologically at the bleeding edge.

Now, this is a very controversial subject and there are many that still today disrespect Microsoft and they are allowed to have their opinions. What cannot be said is that Microsoft did not go on to become one of the most successful businesses of our time making Bill Gates the richest man on earth!

Still, many technocrats agree that Microsoft products are not technically as advanced as their counterparts such as Unix, and this may be true. However, customers and investors vote with their money and they have voted for Microsoft time and time again as instead of trying to build the best technical products, Microsoft continues to build Client relevant products based on their feedback. The question for Microsoft is, will the new management team post Bill Gates understand and propagate this subtle choice and are they able to match the Google onslaught and the SaaS software model? Time will tell and this is not the subject of this article.

It is our experience that GREAT companies treat Bad News like gold. They often have a specific role(s) in their organisations that analyse this feedback and work towards merging this with product and services roadmaps. We certainly agree with this approach. The best GAP analysis will find significant relevance in this Bad News. Often organisations ask their marketing teams to work through GAP analysis and struggle to find relevant information, or worst still, abdicate the role to an external organisation that goes-on to commit the organisation to lengthy and costly research programs that often give the wrong results. All this while in a database, hidden away somewhere in a Customer Support department, this goldmine is sitting there gathering digital dust!

So, going back to our earlier (1st) article, as the Leader of your organisation, how often have you gone and sat down at the customer support desk and asked for real feedback on what our customers are telling us about our organisations. Has your website become a labyrinth full of “Look at me” type information, where most of your potential and existing customers get lost looking for information or are you giving them tools like Blogs that are easily accessible allowing them to get quick access to information and giving you their FREE advice?

Tough Times....... Shrink your workforce! - Aldo Grech

To say that we are currently experiencing a global financial melt-down would be an understatement. From city to city and country to country, previously unheard of news, of major financial institutions facing bankruptcy and the billions of dollars of government aid, trying to avoid this, has become the staple diet of news reporters, globally. So, what does a responsible CEO and their organisation do in times like these? It is time to cut costs and in some cases, an opportunity to justify bad news, blamed on the current situation, often hiding the real problems that are more endemic within the organisation, rather than a real reflection of the current financial crises.

And who would blame a CEO that takes advantage of such an opportunity to trim-down costs while at the same time gaining respect for acting responsibly in adverse market conditions!

We all know that a significant and quick cost-cut is always in the headcount! Over the years we have diligently outsourced non-core activities, lowered our operational costs, maybe moved into cheaper offices, replaced old costly technologies with new, efficient and cost effective ones and now, the one large cost line in our P&L is people! A few heads gone.... and we significantly improve our bottom-line, now able to report better news in worsening economic climates. There you go, we are now stars claiming better than industry average results and the board and shareholders are happy.

So, we ask you to consider; does this mean that we have redundant staff that we had been unnecessarily carrying, allowing the organisation to incur unnecessary costs? As if not, then, this is the time we need this headcount. GREAT companies invest more in these down-times. They utilise the favourable times to negotiate better supplier rates and develop new products/services/pricing to take-on their competitors that are more internally focused, reading the numbers to make staff-cuts resulting in weak moral in their organisations perfect for you to reap the benefits of this market opportunity.

Again, in this situation, referring to the “Bad” News article, we have looked at the tough market conditions as an opportunity to grow our business, increase staff moral, negotiate new supplier pricing and gain momentum while our competitors are slashing costs and handicapping their organisations!

After all, you have invested significantly in these people. Unfortunately we treat people as liabilities and costs in our P&L’s. However, the truth of the matter is that our people are our unique asset that increases in value with time. It takes time, effort and a few mistakes for the employee to go through the process of becoming a valued entity in the business that efficiently and instinctively understands the nuances of the business to be able to turn-around and make quick and mostly accurate decisions. All those years of knowledge are gone when that employee leaves the organisation and let’s hope he/she does not join the competition who is ready to leverage that newly acquired intimate competitive knowledge. And no non-disclosure contract can protect us from that, as we all know!

We ask you seriously consider, that Tough Times are in fact the time to hold on to your best asset, your people while your competition sheds their best asset.

And, we ask you, who is going to be the strongest, best set organisation to take advantage of the unavoidable good times that follow tough ones? The organisation with better trained staff, better tuned products, Great staff morale and highly respected by the industry and all, for doing the right thing by their staff, or is it the organisation that "treats it's staff as mere numbers in their P&L?