Real World

the good news about disengagement

“Stereotype fools, playing the game. Nothing unique, they all look the same. In this Sea of Mediocrity, I can be anything – anything I want to be.” ~ Arch Enemy

The Bad News:

People everywhere are disengaged from work. The statistics, if accurate, are horrifying. Within just the past year or two, Gallup indicated that 72% of US workers were not engaged in their work. This disengagement ranges from just going through the motions and getting through the day to actively undermining the efforts of co-workers and the company. Gallup also reports that the lost productivity from actively disengaged employees puts a $370,000,000,000 drag on the economy each year. Other research and news outlets consistently report similar findings.

That’s bad news for the economy, bad news for the average company, and not much fun for the majority of workers.

The Good News:

There is actually so good news that comes with so many people setting such a low bar for themselves and the world.

At the leadership / company level, there is a very effective and nearly uncopyable competitive advantage for those who can attract, develop, and retain people who care. [Here’s a little secret: people who care want to be around other people who care. Use this information to your advantage.]

At the individual level, the more others are disengaged, the easier it is for you to stand out as a superstar. Show up, smile, do a good job, do right by the customer and the company, and you’ll be looking good. Have some enthusiasm, give a damn, strive to go the extra mile, and you’ll be a full on rock star.

yet another thing they didn’t tell you in business school

Conventional wisdom holds that: Profit = Income – Expense. Formulas don’t get much simpler than that. Increasing income or reducing expenses increases profits. Intuitively, that sounds right and LOTS of business decisions are made on this basis. Stock analysts and the companies that pander to them love this formula. Announce significant expense reductions (perhaps through massive layoffs) and stock prices jump up in anticipation of the profits to come.

The problem is, this formula is nice in textbooks but a gross oversimplification in the real world. It pretends there is no relationship between income and expense and makes the implicit assumption that the other variable is being held constant. But that’s not how it works. The real interpretation of this formula is this: Increasing income while holding expenses the same OR reducing expenses while holding income the same increases profits.

Income and expense are connected in a very real way and cannot be completely isolated. Why? Income is determined by your customers, not by you. Let’s play with some “what ifs”:

What if you cut your inventory on hand to zero? Your overhead costs would drop tremendously. You’d save a ton of money and your profits would go through the roof, right? Nope. Your customers would get torqued off that you had nothing in stock and they’d go shop elsewhere. Cutting expenses cut income.

What about maintenance expenses? You’ll save a bundle by “deferring maintenance” for a year or two. Bingo! Except you’re going to have a hard time convincing your best customers to shop in a dingy, dirty, broken down building. They go across the street to your competitor’s modern, bright, clean store. Cutting expenses cut income.

What if you laid off all your employees? No salaries or benefits to pay – there’s a major expense gone. Big time profits, yes? No. Without employees to help customers it won’t be long before there aren’t customers. Cutting expenses cut income.

What if you just forced all your employees to take a pay cut or cut benefits? You’ll save some money then, oh yeah! Um, well, no. Disgruntled employees don’t take care of the customers. Your best employees have other options and they leave. Your customers are now consistently receiving poor service. Wait, I mean your former customers. Cutting expenses cut income.

What if you invest heavily in technology and facilities that make shopping easier, convenient, pleasurable, and more fun for the customer? What if you spend more to find, hire, train, and reward outstanding customer service driven employees? Is it possible that increasing expenses could actually increase income? Only if the variables of income and expense are in some ways interconnected.

It’s worth saying again:

Expenses and income are often directly connected. They are not independent variables because your customers determine your income, not you. Customers have choices of who they give their money to so income can never be assumed to be constant. If you cut expenses in ways that negatively affect the customer, your income will go down. Likewise, if you increase expenses in ways that positively affect the customer, your income may go up.

Some expenses are worth reducing, but all expenses are not equal. Choose wisely.

the not-so-secret secret to achieving more

I was recently chatting with another fellow at the gym and he was telling me about his daughter’s experience with cross-country track. “My daughter normally finishes 3rd or 4th from last in her cross-country practices. Yesterday, she finished 4th from the front. I asked her how she got so much better. She said she decided to run faster.”

Deep wisdom from a 12 year old.

That’s really the secret, isn’t it? Decide what we want, decide we’re going to get it, and then give more effort.

We generally operate far below our true, focused capacity. We tell ourselves we’re going all out, but often we’re going too fast on the wrong things and too far below our potential on the things that truly matter. We go hard but we often hold back from our absolute best, replacing too much scattered activity for too few focused results.

We can decide to better use the knowledge and skills we already have. Decide to fulfil that potential. And, once we reach the edge, our capacities will grow and expand. We can gain more knowledge, more skill, and make even better use of our abilities.

We can be better, but we have to decide to.

At least, that’s what I see in my own life. Your mileage may vary.

people, profits, and HR

I bought a car a couple of weeks ago, an experience that has inspired several blog posts. One of the things that really struck me was that, amidst a rather amazing and intimidating amount of paperwork, there was a paragraph in fine print where I had to acknowledge that the dealer might be making a profit off of the transaction.

Huh?

Why wouldn’t they? Why should I have to sign an agreement saying I realize they just might benefit? They certainly don’t need my permission. No other store I’ve ever been in has been concerned that I was aware and ok that they were selling me something for (gasp) more than they paid for it. Stranger still, it was in fine print on a two foot long page of fine print – most people wouldn’t notice or realize or even care. Have car dealers had a problem of people suing when they found out the dealers weren’t losing money on the deals?

Actually the boilerplate fine print nonsense is not what has me concerned. It was more the fear behind it. Why on earth, in a capitalist nation proud of its entrepreneurial spirit, would we resent a business profiting? The doors were open, the lights, were on, the and the employees and owners want to get paid for their efforts. That money has to come from somewhere…

It really got me thinking about where else do we resent profits? How often do those of us in Human Resources think that we’re above business and dollars? That it’s not about the money, that it’s about the people? That the HR department is a humanitarian oasis in a desert of cut-throat capitalism? That we don’t need to understand the business because it doesn’t apply to us?

Here is a simple formula I like to use: Profits = People = Profits. Profits are a direct result of people and people create profits. We cannot remove people from the profit equation, so why pretend that we can? Why pretend that they are somehow separate?

Human Resources, at its very best, impacts organizational performance. We hire, develop, and retain great people who care about the business’ success, who deliver great results. We advise and help leaders get the most out of their people and out of themselves. We assist people when there are things going on in their lives that get in the way of them being great. We help create, shape, and support the very personality of the company.

Human Resources at its most mediocre doesn’t understand, doesn’t care about, or resents the connection between people and profit. When that happens, we fill the slot, check the box, file the paperwork, say “no” a lot, and become an irrelevant barrier.

It’s really our call.

the work ethic that never was (kids these days)

Kids these days… No one gives an honest day’s work anymore… Not like when I was coming up in the organization… What ever happened to people’s work ethic…

You’ve heard these words before. Maybe even said them. I suspect each generation will say these words about the next generation until the sun flares out and the earth dies several billion years from now.

I was recently re-reading Elbert Hubbard’s “A Message to Garcia” and it made me consider the possibility that the work ethic isn’t dead, that it isn’t dying. Perhaps it never really was alive.

Hubbard’s short pamphlet was originally written as rather inspired filler for a magazine and created such demand that it went on sell forty million copies in 37 languages. Clearly, his message struck a chord. It’s a great short read that’s less than three pages long. I came across it here, but you can find it all over the internet.

In it, the author laments how few people are willing to go above and beyond or even do the very basics of their job reliably and without coercion. And how surprising it is when someone does a job and does it well on their own initiative. Speaking of the man who delivered a message to General Garcia without hesitation, without question, and at great hardship, he exclaims:

By the Eternal! There is a man whose form should be cast in deathless bronze and the statue placed in every college in the land. It is not book-learning young men need, nor instruction about this or that, but a stiffening of the vertebrae which will cause them to be loyal to a trust, to act promptly, concentrate their energies; do the thing – “carry a message to Garcia!”

 

His frustration with the work ethic he saw displayed throughout society is clear. But it wasn’t written about the Millennials. Or Generation X. Or the Baby Boomers. It was written in 1899.

Kids these days…

the always only way?

The Objection

“But that’s the way we’ve always done it!”

Really, always?

Is that the way it was done 100 years ago? (no)

How about 50 years ago? (no)

20 years? (no)

10? (could be)

5? (possibly)

Perhaps you mean that’s the way you learned to do it because that’s the way it was being done right then? (yes)

 

The Bigger Questions

Even if it has been done that way for the past century, is it the best way now?

Just because it made perfect sense in the past, even when the past was only the day before yesterday, does it make sense now?

If you had to remove three steps from the process, which would be the least missed and the first to go?

If you were creating the process from scratch RightNowToday how would you do it?

Does it even need to be done at all?

the one skill to develop

Want a leg up professionally? Need a career boost? Become a better public speaker.

I can hear the collective response: Ohhh, ugh, groan. Not public speaking. Yawn. That’s lame. Give me career advice I can use. Maybe more school or certifications. I hate public speaking.

And that’s a big reason why it’s such a powerful skill. So many people hate and fear public speaking that even a mediocre speaker really stands out.

Why public speaking?

It’s valuable in all fields and every position I can think of. Any position that involves speaking to another human benefits from better communication.

I have met leaders from numerous countries and cultures and cannot think of a single one who wasn’t an adequate public speaker. Speaking and communication skills are crucial to being an effective leader.

Your skills get noticed much more quickly. Who does leadership remember: the talented wallflower or the talented person who speaks up, interacts, and leads discussion?

It’s (relatively) easy to learn. You’ve already been speaking to people almost your entire life.

You can use it personally and professionally. In fact, if you are involved in community, school, or church groups, you’ll find plenty of opportunities to put your public speaking skills to use.

 

Suggestions?

This is a big topic and books can and have been written on it. That said, there are a couple of things that really helped me:

1. Your audience is pulling for you. Most of the people listening hate public speaking so they empathize strongly with you. They feel your pain and want you to succeed. Unless you are a professional speaker, they are very forgiving of mistakes.

2. They don’t know what they don’t know. This was the most freeing realization for me. The audience doesn’t have a script. They aren’t verifying that you are saying what you intended to say. They will never know if you make minor mistakes or leave something out. Relax.

3. Know the central point and always speak from there. There’s two sides to this. First, when preparing, always stay focused on the central point and strip away anything that doesn’t directly support it. Second, if you get off track, don’t worry about what you had intended to say, just speak from the central point and you’ll be ok.

4. Put some heart in it. No matter how dry the topic, you can find ways to connect to the audience’s humanness. People respond to their emotions, not logic. You are speaking for a reason – to offer insights, inspire, persuade, influence – otherwise you could just send an email.

5. The audience is always asking themselves, “Why do I care about this? What’s in it for me?” so you should always be answering that as you speak.

6. Introverts can have a great advantage as speakers. Never confuse being introverted with being shy because it’s not the same thing at all. And being talkative can be counterproductive when it comes to public speaking. Introverts seem to be good as staying on track, keeping it concise, and providing great insights and analysis.

7. Good speakers work hard at it. You never see all the preparation that went into even a short presentation. That speaker who looks relaxed and glib and gives a great presentation likely spent hours preparing and practicing and worrying and sweating. Very, very few can ad lib a good presentation. Those who can are almost always relying on years of experience. Rest assured, it is completely normal to need to invest a lot of time getting ready.

Like any skill, no one is great at public speaking right from the start. It takes time and practice and patience to improve. But, it is also well worth the effort because it’s a skill that sets you apart.

lessons from used tires

It’s pretty easy to confuse flash for substance. To think that we’ll do better once our surroundings, our products, our marketing are better. Once we have the nicer office, we’ll keep it better organized. Once we have a better brochure, we’ll be better salespeople. Once the new software is set up, we’ll provide better service to our customers. Once we redo the lobby, we’ll get more business.

And it’s a lie. We tell it to ourselves because flash is easier than substance.

Appearances do matter, but delivery matters more. Looks can give credibility to a first impression, but results keep people coming back. All else being equal, flash will attract more attention, but things are rarely equal.

I was reminded of this lesson over the weekend. My truck needed new tires so I headed over to my favorite tire shop on Saturday morning. It’s a business that most would say are doing everything wrong. They:

Only sell used tires. Used tires are not sexy.

Only carry popular sizes. Need something special ordered? They don’t do that.

Don’t advertise (as far as I know). If they do it’s in the local trader classifieds.

Don’t have any product displays. No pretty pictures of families traveling in their car, tough four wheel drives adventuring through the back country, or sports cars gripping the road at high speed. The only display they have is a shop with tires stacked to the roof. If you’re buying from them you want tires, not a lifestyle validation.

Don’t have individual bays for each car. They have a shaded concrete slab that’s about three cars wide. It looks like a race car pit crew decided to work in a driveway.

Don’t have a reception area. There is no lobby. The office is where you go to pay and it’s off to the side. There isn’t even a dedicated person to greet you.

Are off the beaten path where you would never pass by in your daily activities. You’d never even find them accidentally. They are in a rough and forgotten part of town. Not dangerous, just poor and long neglected.

Look well worn. The shop is old galvanized metal and looks like it belongs on a weathered farm. The office is the size of a small garden shed and is clearly an afterthought. The business name was painted on the outside once, but has long since faded and been obscured.

Don’t pamper the customer. You could wait in the office but probably don’t want to. Most just sit outside near the cars on plastic chairs.

The appearance doesn’t inspire confidence. There is no flash. Judging by looks you’d assume they can barely afford to be in business. And you’d be wrong simply because of what they get right. They:

Are friendly. They talk to and joke with their customers. They enjoy their work and their customers and it shows. Many repair shops are terrible with customers and these guys really stand out.

Are fast, fast, fast. Saturday morning and I was in and out in less than an hour. Done and on with my day.

Are busy. It is always a beehive of activity. The place would look abandoned EXCEPT for all the people and cars always there.

Greet you quickly. Despite all the noise and chaos of power tools, cars, people, etc. I have never waited more than 30 seconds before someone noticed me and came over to help me.

Know who they are and what they do. They don’t pretend to be anything else or waste the customer’s time trying to do something they can’t.

Thrive on repeat business and word of mouth. I’ve bought at least four sets of tires from them and every time I’m there it seems that most of the other customers are just as enthusiastic and have been coming to them for years.

Are empowered. There is no visible chain of command, no noticeable differentiation between employees. Everyone is helpful and everyone helps.

Have freakishly low prices. Seriously. They clearly aren’t spending money on their location, buildings, or marketing and the customer benefits. They’ve used what most would consider a major disadvantage (location and appearance) and turned it into a huge competitive advantage.

Are not a “me too” business. They have the segment to themselves. While others fight and scramble for their piece of the pie, these guys found a niche where they get the whole pie for themselves.

Want you to come back. Too many businesses stop caring the second they have your money. Not these guys. The manager/owner stopped working on a car as I left to shake my hand and tell me to come by if I needed anything, had trouble with the tires, or wanted them rotated.

What can we learn? Reputation matters. Attitude matters. A focus on long-term service matters. Speed matters. Results matter. What you deliver matters. Caring about the customer matters.

What other lessons can we take from this? How else does this apply to HR, leadership, sales, Realtors, health care, and everyone else?

vacation, holiday, time away

You might have noticed I haven’t been around lately. I disappeared from twitter, haven’t commented on other blogs, and haven’t posted any of my own. I’ve been on vacation and it was nice.

I’m getting better and better about taking vacations and getting away. In the past I was a consultant or contractor and very rarely took more than a few days off at a time. If I wasn’t working, I wasn’t making money. Now that I’m with a company that actually encourages getting some time away, I find myself enjoying my vacations more and more each year.

My vacations are pretty low key – return to the high desert, spend time with friends and family, mountain bike, eat too much, etc. Others would find that a bore and instead seek out cities, cruises, casinos, and nightlife. Others still might prefer to completely get away and go camping, hiking, fishing or hunting. Or take a camera, journal, and passport and travel the world. Or…

Actually, it doesn’t really matter what you do as long as it works for you. Just as rest and recovery is an integral component of a serious athlete’s training program, I suspect that active and conscious rest and recovery is a necessary part of a successful career. Time away NOT THINKING ABOUT WORK allows us to come back refreshed and attack the issues, problems, and challenges with a new zeal and fresh perspective. It allows us to step back and approach it from a different angle. To step away from the grind, reconnect, and refocus on the parts that make our jobs worthwhile.

What recharges your batteries?