Treating Employees Like Associates

Teamwork And Integration Concept

This is a guest post by J.D. “Dave” Power III,
 Founder of J.D. Power and Associates. Dave is the subject of a new book POWER: how J.D. Power III Became the Auto Industry’s Adviser, Confessor, and Eyewitness to History.

Empower Others

In 1982, Tom Peters and Bob Waterman profiled a number of successful companies in their book In Search of Excellence. One section profiled two companies that had done well by valuing employees: Hewlett Packard, founded in 1939, and Walmart, founded in 1962.

My company, J.D. Power and Associates, was more than a dozen years old by the time the book came out, but I remember thinking how similar my approach to managing people was to that of Sam Walton, Bill Hewlett, and Dave Packard. Like Walton, I called my employees “associates” — something I was so committed to that I included them in the company name alongside my own.  And like Hewlett and Packard, I saw the empowerment of individuals as the best way for the whole organization to achieve success.

 

The empowerment of individuals is the best way for the organization to achieve success. –JD Power

 

Peters and Waterman tracked down the sources of HP and Walmart’s management philosophies: Sam Walton had learned about working with people at J.C. Penney and modeled many of his company’s core values on that culture. For Hewlett and Packard, it was lessons learned by working with government offices and for other electronics companies that taught them what not to do.

Treat Employees Like Associates

For me, the foundation of my philosophy for how to treat people — central to my management style — came from observations of what to do and not to do, and those observations started early.

I have always been a student of why people behave the way they do. This goes back to my family, my dad and his explanations to me, and to school. I think I learned a lot in grade school and college about why people do what they do and to have a respect for what they’re doing.

My father, a high school English teacher, was always giving me advice that proved invaluable in running a company. The path he took in his life was the furthest thing from business, but he had a keen sense of the way the world worked and very intelligent insights about people. While I was still in school he told me, “When you’re in charge of people, don’t ask them to do anything you wouldn’t do yourself.”

My first opportunity to put this advice to use was in the Coast Guard.  As an officer stationed on an icebreaker, I was in a position to manage crewmembers from every state in the union and of different races and economic backgrounds.  Many of these men, working as enginemen or boatswains or in the officer mess deck, were just out of high school or were crusty career enlisted men with little patience for young officers.  I made it a point to treat them all with respect and, above all, to talk with and listen to them.  I felt that some other officers, especially the ring-knockers who had come out of the academy, relied far too much on the number of stripes they had to bolster their authority — and I also saw the pitfalls of doing so.  The officers who did not listen to the crew often found it difficult to achieve their goals.  And examples of this behavior went all the way to the top, to the captain in place when I began my first deployment.

This captain created conditions for the crew to misbehave and then came down hard on these young men when they took advantage of the opportunity.  But his gravest mistake, in my view, was an unwillingness to listen to the thoughts of the people who were subordinate to him.

The Outs and Ins of Employee Loyalty

bigstock-Loyalty-Road-Sign-2686847

 

The era of employees signing up to work at a single company for their entire adult lives has long been over.  The importance of differentiating and branding yourself has never been more important.  The best employees have options. They are always on a recruiter’s radar. They often have a resume ready. If your best hope of retaining them is a counteroffer, then you have already lost the war. Consider these ideas if you want to increase your employee retention.

OUT

Helping employees only with their jobs and specific skills to improve productivity.

IN

Helping employees with their lives, which recognizes them as individuals who have needs outside of work.

OUT

Keeping employees at arm’s length and in a strict business relationship. Getting too close clouds your judgment.

IN

Taking the time to know them. Ignore the old advice and become friends. Employees are more likely to be loyal to someone considered a friend.

OUT

Telling employees that promotions are rare, that Jane is never going to retire and to “forget it,” that they will be blocked from transferring elsewhere.

IN

Brainstorming various ways to boost earnings, potential and career options to move within a company.

OUT

Employees nodding their heads like parrots at everything the boss says.

IN

Constructive disagreement, polite dissent, and compromise.

Employee Loyalty

OUT

The rulebook. Everything has a strict procedure and no room for individual deviations or decisions.

Out Execute the Competition

bigstock-playing-wooden-chess-pieces-36360949

Irv Rothman is the president and chief executive officer of HP Financial Services, a wholly owned subsidiary of Hewlett-Packard Company. Prior to joining HP, Rothman was president and chief executive officer of Compaq Financial Services Corporation where he led it from its founding to growth of over $3.7 billion in total assets.

Irv is the author of Out-Executing the Competition.  What I really admire is that Irv is donating all of the royalties he earns on the sale of the book to Room to Read, an organization dedicated to children’s literacy.

 

The best way to out-execute the other guy is to know your customer’s business as well as you know your own. -Irv Rothman

 

Attracting the Right Talent

Much of success in business is about finding and cultivating the right talent.  How did you attract and retain the talent needed to accomplish your goals?

Attracting and retaining the right people starts with a leadership commitment to first develop high performers in-house.  And this has to be more than an annual “talent management” exercise.  It’s an activity that leadership must consistently demonstrate is important by developing people and promoting from within.  This sends key messages to an organization:

1)   Leadership can be trusted to do as they say they will.

2)   Career opportunities exist…. No need to look elsewhere.

3)   Leadership recognizes and acknowledges that outside hires are a 50/50 proposition.

In short, provide an atmosphere where people can learn and achieve advancement based on merit.  Not only will the good people stick around, their hearts will be in it.

 

Developing a Culture of Execution

 

Out-Executing the Competition

Your book title is all about execution.  How do you develop a culture of execution?

A culture of execution starts with devotion to the customer.  Since it is theoretically easier to keep a customer than to find a new one, all messaging and reward systems need to be packaged around a “customer for life” philosophy.  And a pay-for-performance compensation system is a must.  Moreover, it can’t be black box; people need to be clear as to what rewards can be expected from results and behaviors.  Once you’ve got all that organized, creating an environment where people have freedom to act on behalf of the customer is crucial. You can’t have a circumstance where people are bound by the linear strictures of a traditional command and control organization. It not only frustrates your employees, it also makes for dissatisfaction on the part of the people on the other end of the phone.

Everything Connects: An Interview with Faisal Hoque

bigstock-Chain-Macro-Isolated-775672

 

My friend Faisal Hoque is a serial entrepreneur, author, and thought leader.  His life is a modern story of success, failures, and resiliency – leaving Bangladesh at 17 for the United States where he has since founded businesses including SHADOKA and others.  You may know his writing from Fast CompanyHuffington Post, Forbes, or BusinessWeek.

I previously talked with him about The Power of Convergence.  His latest book, written with Drake Baer, Everything Connects: How to Transform and Lead in the Age of Creativity, Innovation and Sustainability. Like all of his writing, it is packed with ideas.

Everything Connects

Faisal, it’s so good to talk with you again.  Let’s start with your definition of “connectivity.”  What is it?  Why is it so important? If it is that important, how do we cultivate it?

 

There is no substitute for inspiration, curiosity, and passion. -Faisal Hoque

 

Being holistic and humanistic is key to a great life and doing great work.

faisal.hoque300dpi2013Connectivity is a sense of journey to the sense of purpose — it is an individual, lonely pursuit and a collective, companionable one at the same time.

Our individual, interpersonal, and organizational working lives all interconnect. By examining these connections, we learn new ways to create, innovate, adapt, and lead.

We need to address our own mental experiences, our social interactions, and the mindset we can take to orient ourselves to this holistic, long-term view.

We need to explore understanding that leads to long-term sustainability, the way to act in a manner that promotes mutual flourishing, and how, crucially, a leader can urge us along this process.

We need to arrange our lives and our organizations in a way that leads to long-term value creation: surveying the subtle and not-so-subtle arts of idea generation, decision-making, and creating continuous value.

The newest problems of the world find solutions in the oldest timeless practices like mindfulness, authenticity, and perseverance—because Everything Connects.

Understanding Unique Motivations

“Somewhere along the way, people become convinced that stasis is safer than movement. Consistency feels comfortable; volatility is frightening.”  As a leader, how do you motivate people out of the comfortable?

I think first, we have to appreciate the interior complexity of the people that we work with. Then, we need to make the links between a person’s individual motivations and what our organizations need. In other words, link the individual–personal goals like career trajectories–to the collective group goals like innovation, revenue growth, and impacting the world.

Leaders need to connect with the emotional intelligence of their people and curate their talent to change, adapt, move forward.  There is no substitute for inspiration, curiosity, and passion. -Faisal Hoque

To do this we need to understand what people need from their work in order to do their best work–and how leaders can help arrange that for them. This distinction is rooted in intrinsic versus extrinsic motivation. If people are intrinsically motivated, there is something inside of them that pushes them to their work; if they are extrinsically motivated, something outside of them brings them there.  They embrace the unknown, volatility.  Leaders need to connect with the emotional intelligence of their people and curate their talent to change, adapt, move forward.  There is no substitute for inspiration, curiosity, and passion.

The Benefits of Meditation

You place a lot of value on meditation, calling it the “batting cage for getting familiar with the fastballs and curveballs of our conscious and unconscious habits.”  Off the top of your head, what are the top three benefits of meditating?

Taking Your Team to the Top

bigstock-American-Football-on-the-Field-36441772

As a leader, how do you spot talent?

How do you take talented individuals and turn them into a winning team?

How do you create a winning culture?

Is it possible to use adversity to your advantage? 

What team is the greatest of all time?

I asked Ted Sundquist all of these questions and more.

Ted Sundquist played fullback at the U.S. Air Force Academy, winning the 1982 Hall of Fame Bowl and the 1983 Independence Bowl.  He later served as a flight commander in Germany before returning to the Academy and coaching.  In 1993, the Denver Broncos hired Ted as a talent scout.  Ted was named General Manager of the Broncos in 2002.  Today, Ted is an analyst for the NFL network, a radio personality, a commentator and a blogger.  This year, he added author to that list with the publication of Taking Your Team to the Top.

Identifying Talent

Ted, you’re known for grabbing talent others passed over.  How were you able to see potential where others saw problems?

I think first and foremost you have to identify the talent pool that you’re dealing with.  Understand where the best and the brightest come from that can contribute to your industry.  In professional football, that’s dealing with the entering college football player pool, as well as players already in the NFL, and those available on the street (free agents).

Leading a team in any capacity is not a right but rather a privilege. -Ted Sundquist

Then you have to have a VERY good understanding of what traits are necessary in these individuals in order to execute the plans & procedures required to pursue your mission.  One size doesn’t fit all when it comes to football, and I’m sure that’s the case in other arenas as well.  We had prioritized our requirements prior to searching for those individuals to fill our positions of need.

You must be as detailed with the back end of your prospect list as you are with the top candidates. Look for those individuals that fulfill your priorities in the Critical Factors, those traits which run “vertical” through the organization and are analogous for every person on the team, regardless of position.  Know which factors are most important and which you can “live with.”  Then have a thorough breakdown of the Position Specifics, those skills necessary to fulfill a specific task required of the candidate.

Ensure that the positions are evaluated from various angles within the organization and not from a single viewpoint.  This eliminates personal bias and provides for a crosscheck of opinions.  Mistakes made on the front end of the selection process are difficult to correct once the player is on your team.

Greeting linebacker and team captain Al Wilson after a hard fought win on the road. Greeting linebacker and team captain Al Wilson after a hard fought win on the road.

If you take the time to do your homework, finding the pool of talent, identifying what’s most important to your team to accomplish the mission (Critical Factors [vertical traits] & Position Specifics [horizontal traits]), and then implementing an evaluation system from multiple angles & crosschecks . . . your chances of making mistakes are minimized and you’re more apt to find the best and the brightest talent to execute your plans towards goal achievement.

“The culture should reflect the mission.” Ted Sundquist

Creating A Team Mission Statement