Category Archives: Leadership

The Cancer of Speaking Up!

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There was a post on TLNT by Tim Kuppler titled Society is Holding Organizations and Leaders Accountable for Their Culture. Go read it, it’s really good. I agree with so much of what Tim wrote in the piece.

There is one concept though that I’m beginning to question. Kuppler wants to believe that we have a problem in our society and that problem is people are afraid to speak up to their leadership.

About a decade ago I would have 100% agreed with him. In fact, I probably spent more time in training sessions working with leaders on how to get employees to open up, than any other single thing in my HR career a decade ago!

In 2018, we do not have a problem with employees speaking up. In fact, it’s a full-blown Cancer! Yes, I want employees to speak up when they have something of value to add to the conversation, or if they or another employee are being wronged. No, I don’t want to hear your idiot opinions that have nothing to do with anything we have going on to make us better!

I get it. Everyone should have a voice! We are in a time when people have the right to speak up.

Just because you have the right, doesn’t mean you should open your dumb mouth! You have employees in non-leadership positions who should open their mouth and add to the conversation. And, you have employees who make you dumber when they open their mouths.

Your company isn’t a democracy. Turns out businesses don’t run well as democracies. When everyone has a say, we tend to get very cautious and very vanilla, and no innovation happens, as we try to take into account every single opinion. The business gets pulled to the middle. “Middle” is not a good position for businesses.

The challenge we have as leaders and HR pros is not giving everyone a voice. It’s finding the best and brightest in our organizations, regardless of race, gender, etc., and making sure ‘those’ people have a voice.

The fastest way to failure is to listen to everyone and take into account every opinion. That isn’t helpful. Having the foresight to understand there are really great voices beyond your leadership team could be your greatest insight of all, but understand it’s not everyone.

In a representative government, you want all voices to come through. In business, you want the voices to come through that can actually make a positive difference. Unfortunately, that isn’t everyone who works for you.

In business and leadership right now we have a cancer that is growing out of control and that cancer is a belief that every voice matters. That’s wrong. Every voice does not matter, at every time. Do you think Steve Jobs listened to every person at Apple? No, he barely listened to anyone! What about Elon Musk? Again, no. What about Marissa Mayer? Heck, no!

Great business and great innovation don’t happen by listening to everyone. They happen by listening to the right ones. That might not be popular right now in society, but that doesn’t mean it’s not right!

Compromise Kills Innovation!

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The most innovative leaders of our time were mostly assholes. Why? They refused to budge on their idea. Everything in their body told them what needed to be done to make their idea happen, and they refused to compromise on even the smallest details. This is how greatness happens.

True change only happens when someone is unwilling to listen to their critics.

This is also the exact way more careers are killed than any others. It’s all or nothing. Greatness happens at the edges, not in the middle.

Unfortunately, this doesn’t fit well in most corporate environments. Most MBA programs don’t teach you to be a tyrant. Leadership development, in today’s corporate world, is about bringing everyone to the middle. Finding ways that we can all get along. Even suppressing those who push the envelope too far.

We want everyone to line up nice and pretty. To play the role they were hired to play. To be the poster children for compromise.

It’s important for leaders to understand this concept if your job as a leader is to drive innovation and change. You don’t drive this through compromise and you need some renegades on your team, that quite frankly you might not even enjoy being around.

It took me so long to learn this because I was a renegade as an employee. I couldn’t understand why my leaders kept pushing me to compromise when I knew the right way to do something, the better way to do something, the new way to do something.

Once I became a leader I acted the exact same way towards those who were like me. Get back in line. Run the play. Do what the others do. That was the leadership I was taught. I didn’t value those who seemed to be fighting me, just as I use to fight. New leaders struggle with this because we take it personally.

We feel like those renegade employees are actually fighting us. When in reality they’re fighting everything. It’s our job as leaders to understand that the fight they have is super valuable if directed at the right target! To get them to understand they don’t need to fight everyone and everything but pick some fights that help us all and then support that fight.

This isn’t everyone you lead. It’s actually a really tiny number, but it seems bigger because they take up a lot of time and cause a lot of commotion amongst the drones who want to stay in their box. But, this is how change and innovation are born. By one person who is unwilling to compromise because they know a better way and they’re willing to fight to make it a reality.

This isn’t to say it will always work. Most ideas fail, but those who are willing to make an uncompromising stand for their idea, stand a better chance of seeing that idea succeed.

Here’s where I struggle. If we believe the above premise is true, it seems exclusionary. So, can we be innovative and inclusive of thought all at the same time? I’m arguing above that you can’t. What do you think? Hit me in the comments.

Just Do Your Damn Job, Timmy!

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It seems like frustration is at an all-time high. On a daily basis people are coming unglued over things they have no control over, and never will.

We are told to be more empathetic. We are told our employees need us to be “X”. You fill in the “X” because it changes pretty much article to article, generation to generation, leader to leader. One day I’m just supposed to care more. Then the next day I need to listen more. The next day I need to understand more. Today, I need to be more flexible.

Somehow we’ve gone from running businesses to managing a daycare.

I’ve stopped listening to people who don’t do the job I do. To the people who haven’t done the job in the past decade. To the people who claim to be experts but haven’t worked in my field, ever. 

Instead, I’m going out and talking to my employees. The young ones, the old ones, the ones in between that we’re not supposed to pay attention to anymore because they don’t matter because they’re not young or old, or female, or a minority, or gay. I’m going out and talking to them all equally. Since I need them ‘all’ to move my organization forward.

It doesn’t matter what my employees are telling me. That’s for me, to help them. The thing that will help my employees, most likely won’t help your employees. You work in a different culture, location, industry, climate, etc. No one is a better expert on my employees than I am. 

Just like you will be the expert of your employees, your team, your department, your organization.

 But, here’s what I think you’ll find out:

 – Your employees are all individuals with very specific problems, concerns, and desires.

– Their problems start close to them and then move outward. Sure it sucks Trump is making massive change and they want to help America and the World, but first, they have an issue with daycare and paying student loans, and a health scare. Those problems are bigger than the world problems you keep shoving down their throat. Help them solve the problems close first, then solve the world.

– Your millennials employees became adults, and you keep treating them like they just left college and are still kids.

– Your ‘new’ youngest employees are much different than millennials, and they’re not. They’re still young people with young people’s problems and passions.

– Your employees want to be successful. Across the board, it’s a driving and motivating force. You helping them become successful is the most important thing you can do as a leader. What’s successful? That is also very individualized. Your challenge, as a leader, is to find a way to tie their success to the organization’s success. It’s hard to do, and you have to figure it out for your employees.

We keep letting other people tell us how to do our jobs. Have fun with that. I’m going to do the job I was hired to do, the way I know it needs to be done because no one knows how to do this job, better than me.

The 1 Factor You Must Have to be an F500 CEO!

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It’s not what you think.

Right now you’re sitting there reading this thinking, “I need to know what this is so I can see if I have it or can get it because it’s in my life plan to be an F500 CEO!” You probably are thinking it must something like grit, determination, maybe smarts, attractive looks, or maybe it’s Tim talking about this it’s probably height because he’s a short motherf@cker!

Something truly, statistically interesting has happened over the last 14 years to CEOs of the Fortune 500. It really defies logic.

In 2005 the average age of an F500 CEO was 46 years old. Feels about right. 46 feels like young enough but also old enough all at the same time. The perfect combination of youth and wisdom.

In 2019, do you know what the average age of an F500 CEO was? You would think in 14 years that line would probably stay about the same. Maybe because of all the Baby Boomers leaving the workforce we would see it fall, but probably not too much. If a few Boomers were hanging on, we might see it rise a little, but again, it’s hard to move the average all that much.

In 2019 the average age of an F500 CEO was 59! Basically, over 14 years, the average age went up one year every year! It’s hard to even imagine that could be the case!

So, what’ the one factor you need to be an F500 CEO? 

You need to be a Baby Boomer!

That’s right. Stop going to that Ivy league college and working on your MBA. Don’t worry if you’re ugly or short or fat or female or black or white or a dude. The only thing you really need to be is OLD!

Turns out, big giant companies like Old folks running their company!

Why?

If you are running a multi-billion dollar company, maybe even closing in on a trillion (Trillion is the new Billion!) you don’t want some kid at the wheel. You want someone with seasoning who will tend to be less reactive to major events. They’ll be a bit slower in how they move the company, a bit more conservative in how they manage the assets and resources.

Also, think about what’s happened over the past 15 years. We came out of the great recession. We had this young 45-ish CEO taking the lead in turning us around and putting us back on top. It actually worked! We’ve had this great decade of prosperity! Do you know what companies do when things are going really well? They don’t change anything! Including their CEO!

In fact, many times if the CEO wants to retire, and they trade that CEO in for a younger one, and 12 months in the company is slightly underperforming to expectations, they’ll fire that CEO quickly and bring back the old one to right the ship!

So, 37-year-old Millennial who is chomping at the bit to take over. Calm down and wait until you’re old! You really only have about twenty more years to wait until it’s ‘your time’. That isn’t that long, just 25% or so of your life. You’ll get there, be patient!

Kobe on Leadership and Life!

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It seems like the entire world is talking about Kobe. The tragic accident that cost nine people their lives, including Kobe and his daughter.

I’m a Kobe fan.

It’s complicated, being a Kobe fan.

He has been accused of something horrible in his past. Like most rich people in the world, he got it to go away without any of us truly knowing the truth, but suspecting a whole bunch.

Kobe is one of the best basketball players ever. I loved watching him compete. I love watching him yell at teammates and seemingly not care if he was liked or disliked because he wanted to win more than anyone else on the planet. I love watching him with his daughters. Maybe the worst thing in his past, made him even a better father and husband (I don’t know).

Kobe is not like you or I. He was a true genius. He was better than 99.999999% of people who have ever played basketball. Most of us aren’t in the top ten percent of anything we do in life. Genius is extremely rare. Most people can’t understand genius. It’s a bit scary and completely uncomfortable from what we are used to.

As I said, it’s complicated being a Kobe fan.

In 2012, Kobe posted this on Facebook about leadership-

So, let’s breakdown the brilliance of what Kobe is saying about being a great leader:

1. Are you willing to make those around you uncomfortable to make them better?

2. Are you willing to push those around so much they might actually hate you at the time?

3. Success is more important, in the end, than being liked. 

4. Don’t tolerate victims.

5. We all have a leadership style that will get us to our highest level, it’s not all the same. 

I mourn the loss of a great basketball player and parent you died tragically with his daughter in a helicopter crash, as he was taking her to play the game he loved. I can’t imagine the heartache of those they left behind. As a father that has done that thousands of times, my own heart aches.

We are a totality of what we do in the world. That’s hard for me to reconcile. Humans can do the most wonderful, uplifting things we can ever imagine, and the most awful, and be the same person. Like I said, life is complicated and I tend to actually like how Kobe viewed leadership.

 

Would You Be Willing to Guarantee a New Hire One Year’s Worth of Pay and Benefits?

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“People don’t want more choices. They want to be more confident in the choices they make.”

– Scott Galloway

It’s hard to hire not because there isn’t enough talent. There are all kinds of talent. In fact, there has never been a time in our lives where it’s been easier to actually find that talent and connect with that talent!

The technology and access we have to candidates have never been better. So, why is it so damn hard to hire!?

Candidates are fearful of making a bad decision. I might not love my current job, but at least I know what I have. I know the good and the bad. If I move and make a change, I’m not 100% sure of what I’m getting myself into.

So, would your organization be willing to take that fear away from me? 

Just take it clean off the table. If you take our job, we know it’s a stressful decision, we’ll sign a contract where we will play you a guarantee one year’s salary and benefits, no-fault. Meaning, at any time in the first year, if you, or we, decide this just isn’t working out, we’ll pay you the balance of that first year’s salary. It’s a no-risk offer to come to work here!

Would you do that? Why or why not?

If we do our jobs really well, in terms of sourcing, screening, assessing, vetting, and selection, this is really a low-risk proposition for the company, and it might actually help us land some of the best talent that is just a bit more conservative in their decision making. Think about who is naturally conservative in their thinking? Engineers, highly intelligent, logical people like scientists of all types, medical professionals, accounting types, legal types, etc.

You know those hard to land hires!

The dirty little secret of doing something like this is it’s basically almost no risk because most professional hires, given a proper courting process, don’t leave within twelve months. You wouldn’t do this with high volume hiring, but you could do it with your hard to find, low volume hiring.

What do you think? What am I missing? Why would our executives support this or hate this? Hit me in the comments.

And the Prize for the Most Money Goes To…

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No one. You don’t give out prizes for making the most money. Making the most money is the prize!

“Hey, Tim, you made the most money! Congrats! Here’s a membership to Netflix.” Um, what? Just give me more money, I’ll buy my own damn membership to Netflix!

You give out prizes as rewards when people can’t make more money.  And the prize for the best customer service goes to, Billy! Good job, Billy! Here’s a gift card to Applebee’s for $25!

Organizations are constantly giving out ‘prizes’. We give out prizes for being the best employee. We give out prizes for finishing a project faster than we thought you could finish a project. We give out prizes for showing up to work every day.

I think it might be the first thing you learn at leadership college. If in doubt, give out a prize!

Don’t have an organizational vision? That’s okay, give out a prize.

Don’t have a new product to deliver to the market? No problem, give out a prize.

Have no clue what you’re doing? We feel you, give out a prize!

Prizes are a nice distraction from mediocrity. There easy and the honest truth is everyone likes winning a prize. Have you ever been somewhere, like a golf outing, where they pick raffle prizes and the prizes are all basically crap from vendors no one wants and people get so excited when their random number gets called! People clap. Hey, look, Mary won a prize! Good for her! Wonder what she’ll get? The tote bag or the portable battery that charges your phone up exactly once, yes!

But, we are put in this position because not everyone in our organizations can make unlimited money. So, we have to find ways to keep the troops motivated, and prizes seem to be the motivational tool of choice. The key to prize giveaways is that everyone has to believe they have a shot at winning, but not everyone wins.

If everyone wins a prize, it takes away from the prize value. If I win a car, I feel like the most special boy in the world. If everyone wins a car, it’s still great, but no as special.

Our greatest motivational tool of all time – the prize. Go give out one today!

 

 

The Truly Absurd Power of a Bad Idea!

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Have you ever been caught in a downward vortex of a truly crappy idea that at some point you wondered to yourself, “how the heck did we get here!?”

I like to think I’m the kryptonite of bad ideas in my organization. It’s part of my personality of being a bit unfiltered in my thoughts and ideas. If I think something is a bad idea, I’m probably going to say something. Or at least, I hope I will say something.

Why don’t we stop bad ideas in organizations?

  1. We never want to tell someone their idea is bad. We say things like, “there are no bad ideas!” Of course, there are bad ideas! That’s just a dumb statement. There are ideas that can ruin your company and your career. If some idiot opening shares a bad idea, it should be up to us as peers to point this out and help them out.
  2. The person sharing the idea is in a power position. This one is hard. Well, Tina is the boss! I don’t like her idea, but we have to go along with her or else it will probably look bad and she’ll make sure she crushes my career. This is the worst! If you’re a leader, you need to find someone who will tell you the truth about your stupid ideas.
  3. We all know it’s a bad idea but we’ve got so much already invested we need to make it work. Ugh! My grandmother would call this, “throwing good money after bad”. Well, we’ve come this far, we have to make it work. The best organizations know when to call it quits on a bad idea, take the loss, and begin a new in a better direction.

So, bad ideas grow and prosper basically because we don’t want to hurt feelings or hurt our own careers.

I do think there are some strategies we can use to help get us out of a bad idea. Some things that will allow us to protect our relationships and our careers, and put us on a better path.

If I think of the times that I saw someone’s bad idea blow up in their face, it happened because it was done publicly. If we have the ability to sit down privately with the individual and talk through it, I usually find that together we can create something better, and change a bad idea into something that will work, and it saves face for all involved.

In terms of people in the position of power who have bad ideas, I like, again, speaking to them in private, but also using data and competitive data to try and influence their decision in another direction. I’ve also used a strategy that is a bit risky, but it’s going over their head in a way that seems like you weren’t doing it on purpose. Like, “Oh, I want to share this data with the entire company because I found it so fascinating and thought others would have interest!” Data that shows we should be doing something else, in hopes, it sparks an idea for someone to change.

The reality is bad ideas happen every day in our organizations and it’s up to us to help create a culture where we reward stopping bad ideas. Where we respect each other so highly we are confronting bad ideas as a way to help that person’s career, not point out their failure. If we can get to that point, we put ourselves in a position to take the power out of bad ideas!

Would You Pay .5% of Your Salary to Employ Your CEO?

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Let’s say you make $50,000. That means you would pay $250 annually to keep your CEO employed.

Are you willing to do that?

That’s, on average, how much each employee of a Fortune 500 company pays for their corporate F500 CEO in terms of the executive compensation of a CEO. Now, I know you don’t really pay any money out of your check to your CEO, directly. But, if your company wasn’t paying your CEO millions of dollars, could they be paying you a little more?

Or, do you believe the compensation your CEO is making is giving you, and all the other stakeholders of your organization, a good return on your investment?

A new study is out that looks at this issue:

How much a typical employee of the S&P500 firms implicitly “contributes” to the salary of his/her CEO? An amount of $273 on average or 0.5% of one’s salary, that is, one half of one percent on an individual salary basis. To assess whether such a contribution is worthwhile, one must determine the value of the CEO for the organization and its workers and stakeholders.

I love the mental exercise of this. Being a CEO of a small business it truly brings into perspective what you bring, or don’t bring, to those you work with each day. At the level of a Fortune 500 CEO, and the amount of CEO compensation at those giant companies, it’s hard to even imagine!

Tim Cook, the CEO of Apple, had a total compensation of $125 million dollars in 2019, down from $136 million in 2018. Do you think the employees of Apple would be willing, across the board, every single one, to pay .5% of their salary to keep Tim as CEO or go with a cheaper option?

Better yet, Apple is a very successful, profitable company. If the employees of Apple chose another CEO making, let’s say, only $10 million per year, would that profitability really change that much?

Many people have this argument around college and professional coaches ‘ salaries in sports. Does an NCAA coach making $8 million a year at a power 5 conference, really that much better than a coach making $500K at a mid-major program? Probably not. CEOs probably aren’t that much different. It’s very rare to find a leader, or coach, who is truly transformational that you can point to and say, yep, Timmy is definitely worth what he’s getting paid!

It would be an interesting internal study within your organization to see what percent of your employees would say they would be willing to pay it. It’s really a great measure for your CEO to understand their impact and worth, and probably bring them down to reality a bit.

What do you think? Would you be willing to pay .5% of your salary to your CEO!?! HRU employees – you don’t have to answer this! I already know you would! 😉

HR Managers! Sometimes Executive Compensation is Above Your Pay Grade!

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From the front lines of in the weeds HR Management in Detroit – HR Manager claims to have been fired for whistleblowing on some unfair executive compensation practices!

From the front lines of real HR:

A human resources manager at the publicly-funded Great Lakes Water Authority has filed a whistleblower arbitration case against the agency, claiming she was fired only days after raising concerns about lucrative new retirement benefits for authority CEO Sue McCormick, and how they were handled.

The benefit netted McCormick, a former manager of the Detroit Water and Sewerage Department, more than $90,000 in additional retirement money in 2018 — an amount so large, it had to be split over two years to conform with Internal Revenue Service maximum retirement contributions by an employer.

Hmmm…sounds fishy…continue:

Though other GLWA employees also received the benefit — designed for former Detroit water department employees who left city employment to come to GLWA before becoming vested in the city’s pension system — McCormick’s bonus under the program was, by far, the largest, said Stephanie Stevenson, a human resources manager with the agency whose job included oversight of employee benefits…

…Stevenson said it seemed as if policies were being created specifically to assist McCormick with her predicament — and were being made without consulting Stevenson, who oversaw benefits.

“This was unfair. It was like an abuse of power — corrupt,” Stevenson said.

Rule number one in HR Fight Club – do not make a benefit change without first consulting the HR Pro in the house!

So, the GLWA decided to terminate HR Manager Stephanie. Did they terminate her because of the whistleblower complaint? “No!” was the exact quote from lawyers representing GLWA. Why was Stephanie fired? They weren’t saying…

Here’s the thing.

Almost every executive makes so much more than the run of the mill employee, and HR Manager, that when you see something like your initial impression is something isn’t right about this! Executive compensation is a different animal altogether!

Now, I don’t know if Stephanie was fired for whistleblowing. But, when you hear the explanation of the additional compensation benefit and its design, whether it was done specifically for the CEO or not, they dotted their i’s and crossed their t’s, and while most employees couldn’t take advantage of this additional benefit, all were eligible.

“Unfair” isn’t illegal and sometimes that’s is so hard to accept. Is it fair this CEO gets a bunch of money given to them when most employees will not be given anywhere near this amount? No. Is it illegal? Also, No.

If I was a betting man, Stephanie, got fired not for whistleblowing, but for probably some stuff she did to prove something illegal was going on, when it really wasn’t, but it felt like it was. Why don’t people come forward with whistleblowing complaints? Because either way, no one wants you around afterward. Rightly or wrongly, a trust has been broken. That’s not right, that’s reality. Funny enough, most HR pros actually know the math on this!

What I find most helpful when dealing with executive compensation stuff like this is to bring a few people into the decision-making process, and have us all together at the same time. I want someone from my legal team, someone from my HR team, and someone from my finance team, hopefully with their CPA. Are we legal, are we following tax laws, are we breaking policy we shouldn’t? Is everyone good? Okay, go.

Executives are hired and fired for making decisions above our pay grade. Sometimes they get benefits that seem unfair and exorbitant. The big question you need to ask, is this illegal or simply just unfair? Those are two very different things!