Issue 30, Thursday 19 October, 2000
Made in New Zealand - twice winners of the America's Cup
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Made in New Zealand - twice winners of the America's Cup
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Structure makes learning productive
Hierarchy almost always stifles learning
Hierarchy almost always stifles learning
Sara Lawrence-Lightfoot
professor of education
Harvard Graduate School of Education
professor of education
Harvard Graduate School of Education
Award is a free fortnightly email magazine with the tools, techniques and best-practices that deliver high performance in the new economy
In this issue
START – Here comes ... KiwiCoach! Kiwi What?
WarmUp – Firestone; lies, damn lies, and ... the continuing story
Ten Minute MasterClass – preventing a talent crash - the new HR
QuickPoll - AOL
Quick Case Study – corporate citizenship and the new philanthropy
Sixty Second Snapshots
>> The ethics of bribery
>> Quality advice at Quality Today
>> Second thoughts on First Movers
>> Customer-centered Six Sigma
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START
What do you know about Life and Executive coaching? It's a subject your editor keeps tripping over, and each time the temperature rises. What is it? Well, very briefly, it's sort of like sports coaching without the exercise. Done on the telephone, either one-to-one or in virtual groups, coaching improves life, work and leadership skills. Coaches can work anywhere - and do. Many have international clients. It's THE current hot topic (Time magazine, full-page article, issue of October 15, page 53), and growing fast. Works brilliantly for many people.
So why's the temperature rising? Take a look at my resume. I'm already doing lots of 'coaching.' It's a natural fit with the performance excellence ambitions of this eZine and the Baldrigeplus web resources, dovetailing nicely with my beliefs and life skills. Can you hear the music? We're jazzed about this.
So what are we doing about it ('we' being the Baldrigeplus actual and virtual team)? We've registered www.kiwicoach.com. Embarked on a self-administered crash course. Sketched out a coaching package that starts with a strategy for life and work and ends with real goals and measureable results (and then, for the brave, revolutionary change).
Our goal? A Total Quality You package that in three months (at a rate of one tele-session per week, plus unlimited email support, access to dedicated web resources and live discussion groups) enables you to re-purpose your life and work. The answers will be yours to own. You already have the wisdom and resources you need.
When? If you're interested (or know anyone else who may be) watch for a roll-out in December. We'll build out the web site over the next few weeks, and add a lot of detail to the package. And we'll report progress in the next few issues of this eZine. Got an opinion? Send us an email.
WarmUp® – Firestone; lies, damn lies, and ... the continuing story
In Award 29 quality engineer Steve Prevette pointed out some of the costs and risks of mis-using statistics, with reference to the on-going Firestone tire disaster.
In an email follow-up, Steve writes “I do think that there are going to be a lot of lessons (which probably will go unlearned) about this Firestone problem.
”A key question, which we will probably never know the answer to, is did senior management really not know about the claims data (ignorance, acts of omission in not seeking out such data), or did they overtly "cover up" the information, assuming that they could fix the problem and it would go away.
“Perhaps,” he says, “the truth is somewhere in the middle. I tend to lean towards the first option, that the data was buried in and amongst lots of other data. One executive 'explained' to Congress that they had a list of formal performance measures, but no, they did not consider claims data to be a performance measure. Of course for me personally I hope the first option is true, as this infers there is hope if you get the right people looking at the data, and a receptive management team.”
And from a source who'll remain nameless came this:
“In 1987, I quit my 'day job' as plant manager to go back to college full-time to get a second masters. To support the family, I got a job with at a tire manufacturer. I never mention the name of the company in this context, but it was a good year for me,” he wrote.
”I was an extruder operator on a fairly exotic piece of equipment – hard to run and very finicky. On a nightly basis, I completed SPC charts showing that some of the dies used were clearly incapable of producing in-control or even in-spec products. I did this for two and a half years. Since the other two shifts lied and recorded dead-on-zero measurements, mine was considered spurious data and ignored.
”Notes on the charts and daily production records, conversations with supervision, notes and memos to the brass (yes - I have always been a renegade!) were to no avail. So I started refusing to run certain codes. My supervisor, a fine example of third-generation 'just make the numbers' management, simply sent in the relief guy and sent me to break – which of course, I noted on the production records.
”During all this time our Big Three automaker audits continued, which we passed with flying colors; our department had a very high level of 'compliance.' I was assigned to scrap lines when the auditors were in the building. See both a pattern and a parallel here?
”I would almost guarantee that someone close to or on the production lines knew the crap was going down the line. They may not have known the effect, but they knew they were running crap.”
Ten minute MasterClass® – preventing a talent crash
Priceline's VP of Talent, John Patterson (Fast Take newsletter October 10, 2000) offers a time-tested program for recruiting, retaining, motivating, and growing talent – and a radical redefinition of the traditional HR role. According to newsletter contributor Anni Layne “Patterson is strapped into the lead car of Wall Street's most erratic, vicious rollercoaster. Last week, Priceline's stock plummeted nearly 50% following the announcement of disappointing third-quarter projections.”
Responsible for quelling the fears of existing talent and for persuading attractive candidates to jump aboard, Patterson's program for recruiting, retaining, motivating, and growing talent during the worst of times is based on recruiters and leaders adopting four personas: Talent Advocate – fervent supporter and protector of recruits; Talent Scout – marketer of and mentor to talent; Tempered Radical – exterminator of lethal internal policies; and Trusted Advisor – a reliable coach and mentor.
“Salary and options are no longer the deciding factors in the new economy,” he says. “It's my job to build and retain Priceline's talent by ensuring that each employee contributes, grows, and has fun on the job. I can't do that within the limits of a traditional HR role.”
Talent Advocates fight for every employee the way your CFO fights for every dollar! Everyone is a temporary employee, Patterson says, so make sure their two or three years on the job is as productive and as rewarding as possible.
Just as the finance team cracks the whip on departments or company leaders who don't allocate funds properly or who squander valuable resources, the HR team must come down hard on managers who consistently drive away good talent or who inadequately prepare new recruits for the job ahead. "Your talent is on loan to those managers," Patterson says. "They don't have the right to abuse that investment."
- continually re-recruit the company's best people by frequent reviews and conferences with employees to determine when, where, and how HR can induce star talent to stay on board. It may be just demonstrating an interest, or finding a new internal role for a bored or restless employee, or negotiating a new contract with meaningful, personal perks and incentives.
- Patterson uses "The Big Three" – contribution, growth, and fun – as a measuring stick for employee satisfaction. If any employee is not contributing, growing, and having fun on the job, Patterson says Priceline has failed as an employer.
- "People quit managers, not friends," Patterson says. "Community at work is important, don't be afraid to have fun."
- talent scouts must learn to leverage the Web by building and fostering a digital gateway where candidates can learn about the company, chat online with employees, and email the appropriate representatives with questions, comments, and resumes
- talent scouts should hire a marketing firm to specifically sell the company's culture. "Communicate the company brand to prospective candidates," he says. "Show pride in what your company is all about."
- use brand marketing to "Put the job boards out of work." With millions of candidates now online, chances are not great that your company will fish through reams of resumes and hook the perfect candidate for the perfect job at the perfect office on the perfect day – think creatively about referral incentives for employees and other alternative models for finding and attracting the top talent.
Be a Trusted Advisor "At Priceline there's a rule that no employee may quit before he or she comes to talk to me," Patterson says. "Because if I don't know which of The Big Three is broken, I can't begin to fix the situation for that employee."
These simple, familiar troubleshooting interviews feed outstanding information into the HR department and affect the overall recruiting and retaining strategies at Priceline. Patterson says a leader must build an atmosphere of trust and integrity before he or she can expect any employee to come forward with honest feedback.
Talent Rules!
Patterson's 10 principles for recruiting, retaining, and motivating:
Protect your investment
The HR team must come down hard on managers who consistently drive away good talent or who inadequately prepare new recruits for the job ahead.
Re-recruit your best people
Call frequent reviews and conferences with employees to determine when, where, and how HR can induce star talent to stay on board.
Heed the Big Three: contribution, growth, and fun
Measure your talent according to these three keywords. People are most likely to quit jobs that fail to offer stimulating projects that encourage personal development.
Web-ify your recruiting process
Leverage the power of the Web by building and fostering a digital gateway where candidates can learn about the company, chat online with employees, and email the appropriate representatives with questions, comments, and resumes.
Sell your culture
Hire a marketing firm to specifically sell the company brand and personality to prospective candidates.
Think outside the HotBot
Rather than simply post a job online, think creatively about referral incentives for employees and other alternative models for finding and attracting top talent.
Blast out bad policies
Seek and destroy toxic policies - such as inflexible work schedules and stringent dress codes - before they poison the corporate culture and turn away potential candidates.
Spell it out
Communicate the rules clearly and openly, but don't hesitate to re-write them as needed. Small, thoughtful changes can have an enormous impact on morale and retention.
Demand pre-exit interviews
Speak with employees before they submit two weeks' notice. These interviews, based on trust and integrity, may help an unhappy employee and affect overall recruiting and retaining strategies.
Blame yourself
"Start with the premise that you are a crappy manager and that's why your people are leaving," Patterson says. "Treat your employees as resources for improving your performance and the performance of the company."
QuickPoll - AOL
AOL delivers emailed web-formatted (HTML) publications to its customers as attachments, and does strange things to some of the code. If you're an AOLer and this gets on your wick, here's an alternative:
>> Open and bookmark www.baldrigeplus.com
>> Every fortnight we'll send you a reminder and a table of contents
>> You open your browser, click the bookmark, read Award on-line.
AOLers - click the response you agree with and send:
CLICK Just email me a reminder and table of contents please
CLICK Carry on as you are, send me the full HTML eZine
Quick Case Study® – corporate citizenship
We know its not worth a lot of points, and you may not have the discretion to do anything about it, but if you're filing a 'Baldrige' (or European, or any of the international, state or local award) application, you'll almost certainly be struggling with the corporate citizenship questions. Zat you? Then a recent Fortune Small Business Newsletter (October 12, 2000) package – featuring The Art of Giving and Portrait of the CEO as a Philanthropist – may be useful.
Let's start with Doing Good, a look at the new philanthropy.
”Charity. Philanthropy. Noblesse oblige. Giving back. You can feel the difference,” wrote FSB columnist Jolie Solomon. “The first three phrases are rooted in old European traditions: wealthy folks, from the privacy of their estates, giving discreetly to help the poor. But 'give back' feels unmistakably 21st century: cool, pragmatic, transactional. Along with 'social entrepreneurship,' it's the lingo of a so-called new philanthropy.”
Now, keep in mind that this is a US perspective. Social entrepreneurship is a cultural construct that may not fly where you live and work. But in the US it does seem to be true. Charity these days, there, has a different look and feel. “People give earlier and oftener,” Solomon says, “and in ways that are changing society – how we spend money, how we make it … but in one big way, philanthropy hasn't changed: there still ain't enough of it.”
Items:
>> While Andrew Carnegie famously declared that a man who dies rich dies disgraced, and he took care not to, most givers have followed the Warren Buffett model: charity as an after-death experience. Now a younger generation is giving money away almost as soon as it makes it. Ted Waitt, 37, stopped running Gateway to focus on philanthropy.
>> The new givers want more control, not least because this is a culture that's sceptical and unsentimental. Givers sit on boards and demand progress reports. They want results.
>> Givers who hail from the me decades often aim at smaller niches, from their own obsessions to their own survival. Paul Allen funded a rock museum inspired by his hero, Jimi Hendrix. Michael J Fox, struck by Parkinson's, has vowed to fast-forward the cure.
>> The new breed is no less interested in profits. But they demand another kind of return as well: emotional, spiritual, or moral. They talk mission, vision, and P&L in the same breath and believe they know better how to do it all; rake it in and give it back.
Call it compassionate capitalism. While many CEOs have absorbed the notions of social justice that characterized the '60s and '70s, they've left behind the notion that capitalism was the enemy.
"We had a certain disdain for business that was right to a large degree," says Mike Hannigan, co-founder of the office supply company GSB, or Give Something Back. "But we realized that the business world is where the resources are." Last year the Oakland-based company gave $1 million (57% of after-tax profits) to local community groups. "This far exceeds anything we could do in the nonprofit world," Hannigan adds.
Sixty second snapshots®
Brutally short summaries of material too valuable to junk
SSS 1 – the ethics of bribery We figure this is likely to be a pretty marginal topic for most of our audience, but if you're working outside your own national boundaries, and need to make things happen, then bribery is likely to bother you some. Our favourite ethicist (Jeffrey L Seglin of Boston's Emerson College, author of The Good, the Bad, and Your Business, John Wiley & Sons, and New York Times columnist) has recently written on this subject (October 15, 2000).
In brief, the dilemma as outlined by Seglin is that “deciding what constitutes a bribe and then whether you should pay one to do business in a foreign country – knowing full well that if you don't, a less ethical competitor might – can be the real quandary."
The US's Foreign Corrupt Practices Act is a mixed blessing – making it illegal for American companies to pay bribes to secure contracts in foreign countries, but leaving just enough ambiguity ('facilitating payments' are OK) to allow for continued payments to grease the skids. And just because the Act allows it – doesn't mean it's legal where you're working. Our advice (having worked in SE Asia) – step carefully, act on your principles, be persistent, be prepared to be patient.
SSS 2 – quality advice at Quality Today Your editor is an advisor on the Baldrige Award at Quality Today, one of the handful of US magazines that cover the 'quality' beat. Recently the age-old 'what is quality' question came up. You may like to read (and contest) my response!?
SSS 3 – second thoughts on First Movers We've said it ourselves, right there in EDGE FIRST, our companion eZine on leaders and leadership – first-mover advantage is a myth. Now, everyone else is catching up. “Back in late 1998 and early 1999,” said a recent NewsFactor.com article, “the theory of the first-mover advantage became conventional wisdom among emerging e-retailers: Whichever site was first to provide the widest selection, the best customer service and the most memorable brand would be positioned to beat brick-and-mortar competitors – if and when these competitors got their operations online.”
"The race is still only in the early stages, but it is already clear the front-runners can be caught and that the slow starters can make up ground," Steven Syre and Charles Stein wrote. Charles Schwab has more online clients than E-Trade. The Wall Street Journal's WSJ.com has more subscribers than TheStreet.com. And even ToysRus is back in the game, having struck a deal with Amazon.com.
And why was everyone so quick to jump to the conclusion that whoever was first-to-market would succeed? A New York Times article about John Seely Brown's book The Social Life of Information, may offer an answer: endism – the tendency to be obsessed with the new, tired and impatient with the old.
Endism ruled because people believed that the internet – new and unknown – would mean the end of many things. But the emergence of the new doesn't necessarily mean the end of the old – as the Times article says, what's really interesting about the new economy may be what's old about it.
SSS 4 – Customer-centered Six Sigma In March 1999, your editor visited IBM's Rochester, MN, facility. Host for the day was Steven Hoisington (now at Johnson Controls), who has just co-authored (with Earl Naumann) Customer Centered Six Sigma: Linking Customers, Process Improvement, and Financial Results (American Society for Quality Press, PO Box 3066, Milwaukee, Wisconsin, USA, or order from ASQ on-line).
This book helps readers understand the concept of using customer input in all business decisions, operations, processes, and measures. Each chapter discusses the role leaders need to play in this new customer-centered environment. Additionally, the tools presented through Six Sigma help an organization achieve leadership in its respective environments. The last chapter of the book discusses the evolving role of leaders in the ever changing environment, and how leadership skills, not six sigma tools, are needed to help an organization through all the changes.
“This is not a 'Six Sigma' reference guide,” Steve says, “but rather, a balanced presentation, supported by world class examples and case studies, of total quality management and leadership in action.”
Not an advertisement
We'd like, as always, to remind you about EDGE FIRST, our companion eZine dedicated to leaders and leadership - a fortnightly serving of provocative thinking about what it means to be a leader, and the tools, techniques and best-practices that drive leadership improvement. If you haven't seen it, click here for a complimentary issue.
In recent issues
Competing for the future - Hamel is THE MAN, embrace innovation!
Women and leadership - for real progress ... give men the nappies
Quick case study/Jennifer White - on picking winning teams
tompeters! - new economy DNA. Flaky? Irresistable! The survival kit
Snapshots of the new economy - from Seybold to Subramanian
eStrategy - best, first, fastest, lastest ... just watch out for Wal-Mart
A better way - but don't try this at home
Gen II - who wants to be a CEO
>> Next issue November 1 - reader contributions warmly received
>> Copyright © 2000, Macpherson Publishing
>> All rights reserved. But if you found this eZine useful we strongly encourage you to email it intact to associates, friends or acquaintances
>> Award and EDGE FIRST are trademarks of Macpherson Publishing
>> Contact us at macalex1@xtra.co.nz
>> Visit our web site at www.baldrigeplus.com
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