New York, New YorkāAn informal gathering of prominent management gurus. Attendees include: Dr. Thomas āTomā Schweppes, a university professor from the U.K. and author of How to Recognize and Reward Employee Performance. Tom is an affable senior citizen with a zest for life and a heart as big as the outdoors. āElectron Joeā Scott, author of Winning with People, which details his experiences as a legendary CEO. Joe is an outspoken messenger about whatās wrong with corporate America and what needs to be done to fix it. Dr. Maxwell āMaxā Maxum, author of The Magic of Being Nice. Max is a devoted family man who is committed to spreading the word about principle-centered living. Freddie Kim, author of The Authentic Manager. Freddie is a self-effacing and friendly person and the junior member of the group. His passion is converting his observations and ideas into effective management practices that produce immediate resultsā¦.
The group was chatting as Freddie entered the room accompanied by a woman none of them had met.
āFreddie, you brought a guest,ā said Max.
āThis is my mom, Nancy. With me living in San Diego, we havenāt spent much time together lately, so we thought it would be fun to spend a weekend in New York. Sheās the executive vice president of Biz Trenz, the highly successful magazine that targets fast-growing and progressive companies. Iām sure youāre all familiar with it,ā he said proudly.
āWow! Yes, we are, and weāre glad you came,ā said Tom.
āThanks,ā she smiled.
āYouāve been holding out on us, Freddie. You never told us your mom was a business executive,ā said Max.
āSorry about that. It just never occurred to me to tell you.ā
Tom changed the subject. āI really look forward to these times when we can get together to catch up on what weāre working on and share our stories about what works when it comes to motivating employees. We donāt do it nearly enough.ā
āI agree,ā said Joe. āYou know, the last time we did this was almost two years ago.ā
āI guess we need to do something about that,ā said Max, the informal convener of the group. āSo, whoād like to start us off?ā
āI would,ā said Tom. āI had a plant manager contact me a little over a year ago after he had been to one of my programs. He was panicked because the productivity in his plant had fallen off and he was in danger of not meeting his quarterly profit goal. Heād had several meetings with his employees to let them know that their performance was not acceptable, but they were not responding. So he asked if I had any suggestions on how to turn this around.ā
āWhat did you tell him?ā asked Freddie.
āI told him to circulate through his plant several times a day and act like he cared about his employees. I asked him to call me in two weeks and let me know what happened.ā
āWhat did he say?ā asked Joe.
āHe thought I was joking at first, but when he found out I was serious, he agreed to give it a try.ā
āDid he call you?ā
āHe did and he was totally blown away by how quickly things had turned around and how he was back on track toward meeting his goal.ā
āThatās a great story,ā said Max. āI have a sales example Iād like to share. A vice president of sales for a large pharmaceutical company was very concerned about his sales numbers. After being flat for months, his numbers were starting to slide. Trying to turn things around, he required each member of his sales force to make two extra sales calls a day, but this wasnāt getting the job done. He asked me what I thought he should do next.ā
āWhat did you tell him?ā asked Joe.
āTo cut the number of calls that each salesperson had to make each day in half, and instead of focusing on making sales calls, to have his staff focus on building long-term relationships with their customers.ā
āWhat did he say to that?ā
āHe was stunned at my suggestion, but after we talked about how customers prefer to buy from salespeople they like and trust, he reluctantly agreed to try it.ā
āDid you find out what happened?ā asked Freddie.
āI did. He called me a year later and was he ecstatic! His sales had increased by 95 percent over the previous year. He told me he was thinking about cutting the number of calls that his salespeople had to make each day even further. His comment was, āFocusing on building long-term relationships is far more productive than focusing on sales calls.āā
Max leaned back in his chair and said, āYou know, none of this is rocket science. Weāve known since the 1920s that paying positive attention to the people who work for you has a dominant impact on their productivity. Thatās the message all of us believe in and focus on in one form or another. And each of us has dozens of examples that show how the payoff for doing this is incredible, and the impact is immediate. Yet weāre still not seeing wholesale, across-the-board implementation. Weāre still seeing and hearing from a lot of unhappy workers out there. Why do you think this is?ā
āThatās a good question,ā said Freddie. āI think thereās a disconnect between our people message and the executives and managers weāre trying to reach.ā
āWhat do you mean?ā
āAlmost every executive and manager I talk to is quick to admit that people are their most important asset, but they donāt live itāthey pay lip service to it, but donāt take action. In reality, they behave as though the opposite is true.ā
āI agree,ā said Tom. āMost tell me that their biggest challenge is that they have so many unhappy employees. They know what this is costing them in terms of low productivity and high turnover. When I tell them they could turn their situation around tomorrow by treating their employees with respect and giving them the positive attention they want, they look at me like Iām nuts.ā
Joe chimed in, āI had a CEO come up to me after a seminar and ask if this people stuff really worked as well as I claimed. I said, āAbsolutely, thatās how I ran my company.ā He asked if I could give him another example of where it worked successfully and I gave that to him. Then he asked for another and so on. Finally, after the fifth example, he looked at me, scratched his head, and then turned and walked away. I donāt think I could have convinced him if I had a thousand examples, and I told him so.ā
EXECUTIVES AND MANAGERS CAN BE VERY SLOW LEARNERS
Between 1924 and 1932, a series of experiments were conducted at a Western Electric plant in an attempt to find out what affected employee productivity. They found that the simple act of paying positive attention to employees had the dominant impact on their productivity. Today, nearly a century later, weāre still finding that the vast majority of employees are unhappy in their jobs because their management doesnāt care about them or notice what they do. This leads to low productivity and high turnover. At the same time, executives and managers, almost across the board, are saying that low productivity and high turnover are their biggest problems. Hello! Whatās there not to get? Start treating your employees with respect and giving them the positive attention they want and these problems will turn around instantly!
āWhat did he say?ā asked Max.
āThat thereās got to be more to it than that.ā
āI had a similar incident happen to me,ā said Freddie. āA manager came up to me during a break at one of my programs and said, āWhat youāre saying makes absolute perfect sense, and I canāt poke holes in any of your arguments, but itās so counter to what Iāve been told over the years that I just canāt buy it.āā
āThis is a serious problem,ā said Max. āMany of the very people weāre trying to reach donāt want to hear our message. Why is that?ā
āIāll tell you why,ā said Joe. āItās because most managers, especially those in senior positions, arenāt all that concerned about people because theyāre so preoccupied with performance numbers and the bottom line.ā
āHeās right,ā said Tom. āThey fully understand that the harder their people work, the better those performance numbers are going to be. What they refuse to accept is that the better they treat them, the harder theyāll work.ā
āSo, how do we turn this around?ā Max asked.
The room then went silent as everyone thought. After about a minute, a feminine voice spoke up and said, āWe had a situation at Biz Trenz some years ago similar to the ones youāve been describing. I donāt want to sound like Iām bragging, but I was instrumental in turning that situation completely around. Would you like to hear my story?ā
At this point the silence in the room was deafening as everyone was focused on Freddieās mother, eagerly waiting to hear what she was going to say nextā¦.
NUGGETS FROM CHAPTER 1
One lesson many executives and managers donāt get:
- They are very concerned about performance numbers and the bottom line.
- Most fully unders...