Great Bosses VS Stellar Bosses

Being a supervisor of people in a work environment is a very difficult job. On one hand there is a responsibility to get things done using those that report to you, quickly and efficiently as possible. On the other hand, there is a desire for those that report to you to have the ability to grow and assume accountability while accepting the fact that people, inevitably, make mistakes while they develop. Mistakes can be expensive.

Most of us can recall the great bosses we’ve had and many of us can also recall the ones that were less than stellar. What makes the difference between the two types of bosses?

The first differentiator is that the boss cared about his or her subordinates as people. The second is that the boss struck a balance to give the people they hired enough freedom to do the job they were being paid to do. The less than stellar bosses I have had were micromanagers.

In Patrick Lencioni’s book The Five Dysfunctions of a Team, he states that the absence of trust is the one thing that can kill any relationship. Without trust, no team, no matter if it is two people or thousands, will be successful in the long term.

Lack of trust is at the core of micromanaging.

Most people join an organization with the goal of being contributing, productive and loyal. An employee quickly gets turned off and starts tuning out when it their supervisor turns out to be someone who doesn’t want them to voice opinions or do a task differently than the boss directs.

This is not a case of repeating “this is the way we’ve always done it” to every new hire. Once a person has education, experience and thinking skills, they expect to put those resources and perspective to good use for whoever their employer is.

No self respecting business owner would want to work in a company where they weren’t allowed to think and put to use their abilities, so why should anyone think that employees feel any differently?

Two decades ago I gave a presentation to the senior management team of my employer providing a strategy to grow both revenue and volume through existing channels of distribution, while reducing production and shipping costs at the same time. I didn’t expect an answer on the spot; my goal was to get some heads nodding around the room and a decision to “give this idea some serious thought.” Instead I got, “Thanks, Ken. When we want your opinion we’ll ask for it.” That was the moment I became a disengaged employee and reached the decision to find another place of employment.

We’re not just talking about small or privately held businesses. Former President Jimmy Carter personally reviewed the requests for the use of the White House tennis courts during his term of office. Martha Stewart described herself as a “maniacal micromanager.” Robert Crandall, former head of American Airlines, personally decided to eliminate black olives from salads served on the company’s planes to save money. When at Walt Disney Co., Michael Eisner ordered stronger light bulbs be put into the reading lamps at Disney hotels.

While these examples demonstrate how “hands on” these top executives are, in reality, it simply showcases their failures. These people have failed at hiring capable people, failed at developing and articulating clear expectations for their subordinates, failed to give decision-making power; and most importantly, failed to foster an environment of trust in and for their subordinates to do the right thing for their organizations.

What this kind of executive attitude does is kill the spirit of an employee, perhaps turning them from loyal and contributing to one who simply puts in their time, doing the minimum to avoid being fired.

At one of my former employers, there was a standard joke that ran through the company around meeting time. It turns out that the founder always had great ideas, the CEO had some good ideas and everyone else had an okay idea every blue moon. Put another way, it was another version of “when we want your opinion, we’ll ask for it.”

Yet front line employees are in the best position to identify problems and recommend solutions. Confronted with managers who have all the answers and “don’t want to hear it” is it little wonder that companies face the same issues over and over without being resolved.

Those in charge all too often see that the suggestions made by employees for improving things or addressing problems are just another way to spend money or resources.

At one company in the fuel distribution business in Northern California, the president realized he was the problem, and one of the first things he did was to set goals for each department, and left it up to those employees to accomplish them. The accounting department quickly trimmed the average time to collect a payment from customers from 31 days to 23 days.

Theodore Roosevelt said that “the best executive is one who has sense enough to pick good people to do what he wants them to do, and self-restraint enough to keep from meddling with them while they do it.”

Of course, you have to pick people that are trustworthy and you have to have systems in place to verify. But businesses should already have those policies and procedures in place to make sure that happens.

Super Jobs For You gives information on how to get a job and how to hire good people. If you are looking for a Die Casting Job look at this website. This Die Casting Blog will give you more information you can use for manufacturing.

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Costco

25 years ago Costco opened their first warehouse store. At that time in the retail industry, selling annual memberships for the privilege of buying things was almost unheard of. The company has since grown to 544 locations in seven countries, employing 142,000 people and has annual revenue of $72.5 billion. Same store sales grew 9% for the period that ended in August 2008; quite an increase considering what is now taking place in the economy.

One of the things that have set the company apart from other publically traded firms is that the management is firmly entrenched with the concept of building a company that will be around 50 or more years from now.

The belief system of the company is that long term thinking is owed to not just the shareholders but to employees, families of employees, and the communities where Costco does business, as well as to the suppliers of goods and services who employ hundreds of thousands of more people.

The firm has a long-term strategic plan but does not allow people to be relieved from day to day execution which is critical to generating results. As Jim Sinegal, cofounder and CEO of Costco stated in a recent interview, “…the customers vote at the checkout.” The first lesson to share is customers vote by where they spend their money, and if they have stopped visiting you, those sales are going somewhere else; find out why!

Sinegal has perpetuated a myth that he visits 12 Costco stores a day, for the simple reason that he wants to keep people on their toes. He and his leadership team understand that being close to the employees and customers through store visits can be a competitive advantage.

Store visits are conducted from the perspective of the customers. Understanding that nothing is a bigger turnoff than poor housekeeping, leaders physically look to make sure that every store is safe and clean, well-stocked and have the right merchandise out, given the time of year and local buying patterns.

Years of experience has taught Sinegal to note that having a sloppy building is an almost sure bet that the store will have high shrinkage, meaning that shoplifting and pilfering abound. The second lesson is that management by walking around keeps people on their toes; an experienced set of eyes can spot problems others don’t.

To take advantage of the growing appetite of customers who wanted high quality products at less expensive prices, the company started the Kirkland Signature brand. When the company made the decision to create the label, they made the defining decision not to reduce the quality of the products. The third lesson is that by offering a lower priced but similar quality products might expand sales.

The company understands that their customers shop for value. They don’t spend money at Costco for cheap prices for cheap merchandise; the expectation is that they expect the company to deliver value on quality goods. The fourth lesson is to understand why your customers buy from you because it helps focus and run the business better, eliminating guesswork.

The company purchases products and marks them up 15% for sale to customers. This has been a long standing pricing policy that works for customers, but not always for a supplier.

Some companies don’t want to see Costco pricing on their products. But many do, including Movado watches, Michelin tires or Waterford crystal. These suppliers understand that Costco does tremendous volume, pays invoices quickly and is always seeking new and innovative products to sell customers. The fifth lesson is to treat suppliers like partners and understand how they can help you and you can help them.

In addition to having brick and mortar locations, Costco expects to sell $1.6 billion from their ecommerce sight this year, and increase of 33 percent in just one year. The average customer ticket is more than $400 from the web site. The sixth lesson is to understand how your customer can buy from you and make it easy to do so; if they want to purchase from their home or office, let them do it!

The company is always seeking to reduce costs. In many warehouses, Costco has installed skylights and solar panels to reduce electricity costs. The average warehouse is 141,000 square feet, generating considerable energy costs.

The company recycles all the boxes that goods are shipped in, and considerable resources are focused on reducing packaging to save on fuel. The company recently reconfigured how they package cashews, changing the container to a square canister. This single act saved the company and its customers over 500 truckloads a year of that product alone. The seventh lesson is that there are cost reductions just about anywhere you look; always be open to seeing opportunities that might be pennies but will quickly grow into dollars.

The leadership team knows it cannot operate in a vacuum, so at least once a week they find themselves walking through their main rival, Sam’s Club. Those leading Costco know that they are fighting a division of Wal-Mart, the largest corporation in the world in terms of sales volume. Sam’s Club, like Costco, continues to find ways, both big and small, to improve their operations. The eighth lesson is to stay close to your competition because you might just learn something from them!

Super Jobs For You gives information on how to get a job and how to hire good people. If you are looking for a Die Casting Job look at this website. This Die Casting Blog will give you more information you can use for manufacturing.

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How to be Noticed by Your Employeer

Terri Kabachnick is the founder of The Kabachnick Group (TKG) a company focused on teaching service-oriented businesses how to develop customer loyalty through employees.

The research conducted for her book, “I Quit But Forgot to Tell You,” (www.Amazon.com) states that up to 65 percent of all employees are disengaged. This figure is based on surveying, interviewing, assessing, analyzing and studying more than 44 organizations with more than 6,500 employees at every level. What was revealed through the research was a much deeper level of understanding of not just who among the employee population was disengaged but why the employee was disengaged.

Perhaps you know someone who has resigned from their job but didn’t bother to turn in their formal resignation or give notice. They still show up every day, doing nothing but the bare minimum to stay employed or avoid being fired, yet all the while collecting a paycheck and likely complaining about how little they are paid or how unfair the company is to them.

I know people who have been in this situation for decades…and have long wondered why the employer hasn’t notices or done anything about these people, as in fire them!

Poor performance by co-workers is a leading reason why engaged employees leave their jobs. Good, hard-working employees often leave an employer because they have high confidence in their abilities, a proven track record, know they are talented and won’t be looking for work long. They choose to leave disengaged employees and the employer who tolerates them, behind. If you want to know why a mediocre organization stays that way, read this paragraph again.

It takes the typical manager nine months to recognize unacceptable work patterns; the manager waits on average another three months before addressing the issue — if it is ever addressed. In some companies it is really never addressed.

Why do people become disengaged and unproductive? TKG has identified six major reasons.

The single biggest reason for disengagement is that there is a mismatch between the job and the employee. Applications and resumes focus on past activities and results. Jobs being filled are most often for what is needed in the future. In addition, jobs are defined by tasks to be accomplished instead of the values, behaviors and personal characteristics needed for success in the company.

The book states that within the companies surveyed, 72 percent of managers have failed to acquire interviewing, hiring and profiling skills. Less than one third of the companies use hiring tools, position competencies, job profiles, behaviors and beliefs or selling/service assessments.

This lack of acceptance and use of professional tools in recruiting perpetuates poor hiring.

A second reason is that an employee suffers from culture shock. This happens when a new employee joins an organization that is far different from the one they left, or when two companies join together, whether it is a merger or an acquisition. People see the differences between themselves and the place of employment. The process of disengagement begins when they cannot reconcile the two.

The third reason is being overworked and under appreciated. People become disengaged when they have a heavy workload, put in long hours and there is a lack of demonstrated appreciation. High performers often are asked to take on more work because managers know that this kind of employee will do what is needed. But a lack of thanks for the effort is not tolerated by the engaged for long, especially as they compare their efforts to their disengaged colleagues.

A fourth reason is the perception that managers play favorites. Someone not considered a favorite may tend to become disengaged from their supervisor and the organization. According to the research conducted by TKG, 83 percent of the managers hire people they “like” rather than what the job requires. It makes sense from a human perspective that managers would spend time with those people instead of spending time with people they were lukewarm to or did not like. Sixty-eight percent of an employee’s productivity, however, is directly attributable to the supervisor.

Employees at any level can become disengaged but it hurts the organization considerably more when that disengaged person is a manager. The fifth reason behind disengagement is the impact of a “bad boss.” A disengaged manager affects employees throughout the company as well as other managers. The performance of an employee will move 30 percent positively or negatively based on the environment they work in; their immediate supervisor creates and maintains that environment.

The sixth reason is that the “Peter Principle” kicks in. People accept promotions because they need or want the money and may want the prestige that goes with a new title. But someone who is promoted is often given more responsibilities; more work and that may breed resentment unless it is accompanied by continued praise and appreciation.

Employees become disengaged for a variety of reasons but that does not mean those employees have to stay that way. Who in your organization has quit but failed to tell you?

Super Job For You gives information on how to get a job and how to hire good people. If you are looking for Cast Parts Jobs look at this website. This Castings Blog will give you more information you can use for manufacturing.

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Organizations are Built On People

Organizations are built on people. The only true long-term competitive advantage any organization has is the people employed and working inside of it.

It could be argued that in many industries the business model has been established so that just about anyone could work in a company at lower levels and the company would be just fine because the organization’s image was strong enough to overcome the so-so performance of the employees.

The people in an organization set the tone and attitude that creates the company culture. And, each of us has our favorite companies, some we tolerate and some we will never do business with. How we feel about these companies is almost always a result of our experience dealing with the people employed there.

What is not often recognized or understood is that to the customer, the employee they are dealing with at that moment is the company.

When an issue arises at the counter of a quick serve restaurant, the check-in desk for a car rental or while talking on the telephone with a company representative, do you want to be dealing with the best possible employee or the one that was hired because they needed a job?

Think about your own company. Whom do you want dealing with your clients and vendors, the best you can afford or someone who just needed a job, any job and your organization was “lucky” to hire them?

Very few organizations with less than stellar people do a consistently good job of taking care of clients without having problems in service, quality and client retention.

Hiring and keeping the best employees is always a challenge; finding fair employees is never a problem.

I believe that one very good employee is worth at least two, and possibly more, fair employees. If you follow baseball, all you need to do is look at the Los Angeles Dodgers. Having Manny Ramirez on the team and paying him a salary of $20 million sounds like a lot until you consider that Jason Schmidt and Andruw Jones make a combined salary of $29.9 million and neither of them contributed to the club in a meaningful way this season.

Today is a good a day as any other to decide to divide your employees by putting them into two categories: those that are very good and those that are fair. Put another way, who are your A and B employees and who are your C and D employees?

Regarding your A- and B-rated employees can you answer the question that the organization is paying them more than your C and D employees? If not, why not?

Does that mean you should fire those that you have rated C and D employees? No. What it means is that those employees need to have their performance reviewed and discussed.

It is probably time to sit down and explain to every C and D employee what they need to be doing that they are not and what they need to stop doing and get started doing to help the organization.

It doesn’t have to be a difficult conversation. It can, in fact, be an enlightening one for both parties.

I was impressed by the actions that one owner took when he became frustrated with a key employee. He told the employee that it was time for her annual performance review and that she was to list her goals and then rate herself as to how she was doing on each goal. He told her that he would do the same and once they both had completed their independent assessments, they would meet and discuss their findings.

Once they sat down, several things were revealed. The first was that the owner had not been clear about telling the employee what his expectations were. The second is that the employee had assumed she knew what the owner wanted. Neither of them was wrong and neither of them was right. It was an issue of not communicating effectively with each other.

This misunderstanding was the source of his frustration and her belief that she was doing what her supervisor wanted. They proceeded to discuss closing the gap between expectations and execution and since that time, have worked well together.

Neither owners nor employees are immune from hearing the continuing bad news about the current economy. Hiring the best still matters. In fact, in a slowdown, every company should be looking at what it will take to keep their best employees instead of letting them leave for a competitor.

As for those C- and D-rated employees, wouldn’t some of them serve you better by being on the payroll of your competition?

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