Got Drama? Act 2

No-Drama-Button

 

“Don’t tell me what they say about me.
Tell me why they feel comfortable telling you.”
— Unknown

To review Act 1, we defined workplace drama as gossip, finger-pointing, whining, bickering and more.

You may be savoring a business which is not infected with the rot of workplace drama. If so, congratulations. Keep up the good work.

Some of you, though, fight the fires of discontent daily. You spend an inordinate amount of time dealing with drama in all its insidious forms. It kills the productivity and potential of the entire company, and sends you home drained. And, any “A Players” you were lucky enough to hire? They’re out of Dodge on the first available train.

Sound like your workplace? If so, go back to read and implement the recommendations from Act 1. That will put the foundations in place for curing this plague.

Then read on for ways to wade directly into the fray and wage combat wh your Nattering Nay-Bobs.

Circle the troops. Look ‘em in the eye. Tell them that you ask for and expect everyone’s full support for a new start. All the drama and nonsense stops today! Be firm.

Then, go over your new rules. Make them crystal clear and non-negotiable. Here’s a list to jump-start your thinking:

  • Treat everyone the way you’d like to be treated OR the way THEY want to be treated … whichever is better.
  • Attack the problem, not the person.
  • Don’t say anything about a person you wouldn’t say in their presence.
  • Zero tolerance for drama, talking behind someone’s back, etc. If someone tries to engage you in such a discussion, refuse to participate. If they have a problem with someone, tell them to discuss it directly with that person, take it to their supervisor or to the other person’s supervisor. If you listen to the drama you’re just as guilty as the person spewing it.
  • When we’re in a meeting and we ask if there are any questions or comments, we REALLY do want your feedback. If you’re unwilling to share your comments in the meeting, then get with your manager afterward. If you’re still unwilling to speak up, you lose the right to complain back in the workplace. If someone complains about a topic we just covered in a meeting, don’t listen. Tell ‘em to take it to management.

Whenever there’s a flare-up, deal with it swiftly. Speak with the offender directly. Don’t set up more rules or punish everyone because of one person’s actions.

Be willing to have this conversation: “Despite our best efforts, you continue to be unhappy here. Maybe we should help you transition to a place of employment that you find more acceptable.”

Warning: If you establish “zero tolerance” and then turn your head the other way, you’ll lose your credibility. Be prepared to enforce it!

Next time, we’ll talk about keeping score. Assigning accountability for numbers eliminates much workplace drama. This is just one of the ways GGOB really shines in helping you craft a winning culture.

 

 

 

Got Drama? Act 1

work-hard-have-fun-and-no-drama-pleaseDo you have drama in your company?

“Drama” covers a myriad of people issues … gossip, finger-pointing, whining, talking behind folks’ backs, can’t/won’t get along, complaining, blame, excuses, under-performing, bickering and more.

If you’re embarking on the Great Game of Business journey, here’s some good news: GGOB is a culture transformation. It’s all about building a culture of winning and learning.

Some organizations have deep-seated people issues, and I find that leaders in this situation like to try to resolve some of their issues as a run-up to launching GGOB.

Even though GGOB itself is a good portion of the cure for what ails your organization, let’s talk about some approaches to removing drama, and for keeping it out in the first place.

Since an ounce of prevention is worth a pound of cure, let’s first talk about preventing as much drama as possible so we don’t have to correct it.

Culture and good hiring go hand in hand. It’s much like the chicken and egg. Which comes first? One begets the other.

A strong, positive culture is exemplified by employees who know they have a good thing going, and who want to keep out the bad ones while welcoming in the good ones. If your hiring process indeed keeps out those who don’t fit your culture, that’s way more than half the battle.

I’ve written quite a bit about the importance of a “culture document” before. A set of Core Values can be invaluable IF they are genuinely used to guide decisions about hiring, firing, promoting and rewarding. If they’ll just be hollow words or a plaque on the wall, don’t bother.

Once you know what values are important, the company’s leaders must set the tone (and the example), educate the troops, and be unwavering in running the business according to these principles.

Here are some ideas for getting your management team on board:

  • Our Core Values apply to everyone in the company. ALL decisions are made with our values in mind.
  • Set the example
  • Hold others accountable. Do it tactfully and professionally, but do it.
  • Speak up in our management meetings. Debate is healthy as long as we keep it professional and not mean-spirited. We don’t need “yes-people” or nattering nay-bobs.
  • Once a decision is made we each support it as fully as if it was our own idea, both among the other managers and especially with all others in the company. Acting like you support an idea and then undermining it or not supporting it in front of employees is not acceptable.
  • Let’s issue an “Adult Card” to everybody in the company … starting with the CEO and our management team. If there’s a problem, we deal with it like the mature professionals we are: with open, honest, direct communications.
  • You can’t just say all this once and think it’s fixed. You’ll have to remind folks over and over. And over.

Hatim Tyabji grew Verifone into a dominant, global credit card transaction company. His key leadership tool was a booklet that explained Verifone’s eight core values. He says, “I essentially spent the last six years repeating myself.”

A stellar smaller example is Sandy Jaffe, who grew his tiny Paperback Supply into GL Group, an admired local multi-divisional company in St. Louis (and GGOB All-Star winner) with over 200 employees. Their main guiding principle over the last 40 years? The Golden Rule.

In Act 2, we’ll talk about taking the message to the rest of the company.

Who’s Running This Ship, Anyway?

“The family business.”

That phrase is so iconic. It’s almost heart-warming.

And yet, many family businesses are flawed. Some are broken beyond repair. In my work, I’m inside family-owned businesses regularly and have gotten used to hearing hear the word “dysfunctional” … used by employees and the family members themselves.

Trouble is, the people in charge generally aren’t objective. It’s tough to deliver an unbiased opinion when you’re the problem.

It’s been said that every family has a black sheep. If you look around at a family gathering (or family business) and don’t see one, maybe it’s you.

I’ve observed – and have had this observation confirmed by dozens of people in and around family businesses – that one of the main sources of strife and mayhem is entitlement. Example: If the company is called Smithco and my name is Smith, I deserve a position of authority, a title, an office, plenty of respect, a portion of ownership and a lifetime income stream … regardless of my qualifications or performance.

In these companies, two or three generations of siblings and cousins run amok, issuing conflicting orders and consuming resources. Non-family employees can be excluded from management positions, or can have their authority diluted by one of Junior’s “great ideas.”

We’ve all heard the stories about family businesses big and small that have been tainted, if not ruined, by family conflict.

Here’s an approach several entrepreneurial families have adopted that makes a tremendous amount of common sense: A family “constitution.”

Some of the folks I’ve met don’t call it that, but what they all have in common – regardless of the terminology – is a discussion around who does what. That discussion leads to key decisions, with the outcome (hopefully) of a professionally-run, drama-free company.

In such scenarios, here are some agreements that get implemented. Each family member:

  • will not necessarily own shares in the company.
  • who owns shares may or may not have voting rights or a seat on the board.
  • will not necessarily have a job in the company.
  • who works in the company may or may be a manager.

In other words, the qualifications for both ownership and management positions extend beyond one’s last name. It’s a meritocracy, with the best-qualified people in each role.

You can see how much sense this makes, while simultaneously imagining the wailing and grinding of teeth that will occur while trying to gain Stanley’s buy-in. That’s the same Stanley who is 46 and has never held a “real” job other than the one created for him by Mom and Dad.

If you own a family business, consider the idea of a family constitution. It might solve what’s ailing the company. Better yet, it might head off problems before they start.

It’s Not My Fault!

“It’s not my fault!”

How many times have you been a customer and heard that line?

It usually happens right after you bring a product or service defect to the attention of someone at an establishment where you’re spending your hard-earned money.

I was on the receiving end of this statement recently. It was tempting to give a customer service lecture to the person in front of me, faultless as he may have been.

This particular situation involved receiving the wrong fast food order. I had ordered the medium Unrecognizable Chicken McParts and instead received – and was charged for – the aptly named Super Sized version. For a moment, I thought perhaps they’d brought me the entire crate of McParts straight from the walk-in freezer but they assured me this was indeed packaged for individual sale and consumption. (Disclosure: While I may find it amusing to poke fun at the fast food industry, that’s where I had my first job. Accordingly, I’m somewhat sympathetic to fast food employees. Even so, until they start putting the right stuff in the bag, they will be the target of my “how-not-to-do-it” business lessons.)

As a small business owner, I pay special attention to the way service is delivered when I’m the customer. Most folks reading this are probably equally aware of nuances that might be missed by others: The words that are said and how they’re said, body language, the care with which transactions are handled, and so on.

It’s almost unfair to use fast food joints as examples of how to (or how not to) conduct business. After all, they make it awful easy to identify faults.

So, let’s raise the bar and discuss another industry. In fact, let’s discuss your own company.

Have you had the “it’s not my fault” talk with your people lately? Have you ever had it?

Chances are, if nobody has had a direct discussion with your employees they don’t intuitively know that the customer doesn’t care whose fault it is. Even if the customer does know who’s to blame, “blame” isn’t on the agenda. Getting the problem fixed quickly is.

Here’s a good discussion to have with your troops:

  • Every company makes mistakes – including ours. The difference between companies isn’t whether mistakes are made, it’s how they’re handled when they occur.
  • When the inevitable error does happen to one of our customers, apologize. You represent the company, and you’re doing this on behalf of the company. It’s not admission of personal guilt or fault, and it doesn’t invite repercussions.
  • Take steps to get the customer’s problem resolved. If you can’t do this yourself, be sure it gets handled.
  • When you make a mistake – whether it impacts a customer or not – admit it. Learn from your mistakes and share it with others so we can all avoid that mistake in the future.

As business leaders, it’s important for us to shift the focus from fault and blame to learning and improvement.

Banish “It’s not my fault!” from your workplace. Replace it with confident, competent service that keeps your customers coming back.

No Sweat Compensation Planning

You’re sitting in your office, and like most business owners, you’re up to your elbows in a variety of challenges and opportunities. Suddenly, one of your employees appears at your door and asks the dreaded question, “Since my anniversary date was two weeks ago, am I due for a review and a raise?”

You buy some time by telling the employee you plan to work on it within the next few days. But you can’t help feeling guilty. First, you just lied because until you were reminded, you had no idea that the review was due and had no intention of addressing it. Second, you feel a sense of guilt because your lack of a systemized approach to reviews and raises repeatedly ruins your schedule.

As if this wasn’t enough, the next interruption is your accountant who brings the news that salary expense is way over budget, ending with, “Oh, and by the way, we just got our health insurance renewal. It’s going up 22% next year.”

Most small business owners operate in exactly this fashion. The employee anniversary date, by default, creates the expectation of a raise. (Reviews are generally dreaded by all involved, but as part and parcel of an annual raise, they go along for the ride.) Health insurance and other compensation-related expense increases take us by surprise. We’re supposed to be in charge of our companies, but we’re at the mercy of employees, vendors, and arbitrary schedules.

It doesn’t have to be this way.

How about a system that lets you take charge of schedules, accurately budget for increases in salaries and benefits (and actually stay within that budget), and eliminates the constant stream of mid-year raises?

Sound too good to be true? Read on.

First, who says that an employee’s anniversary date has to trigger a review or a raise? I suggest you do two things:

  1. Perform all the performance reviews in your company within a 2-3 month timeframe, near the end of your fiscal year.
  2. Schedule all pay raises to kick in at the same time – the beginning of the new fiscal year.

What does this do for you? For one thing, it eliminates the constant stream of interruptions and unplanned, hastily-prepared reviews (which hopefully equates to better, more thoughtful reviews.) It also gives you the structure to proactively look at your entire team and corresponding salary expense at one time, and to take the time to budget this expense for the new year.

Yes, it can be a lot of work. Yes, it requires plenty of discipline and organization. But in my mind, the benefits outweighs the costs. You’ve got to do this work anyway, right?

Here’s another change to consider: Try to move your health insurance and other benefit renewals to coincide with the start of your fiscal year. Then, by the time you’re doing your annual planning and budgeting for the new year, you’ve got your renewal quote in hand – ready to be plugged into your budget.

Finally, here’s the biggie: Lump ALL of your compensation-related expenses and focus on that number, and not just on the salary expense. Aim to keep this number growing more slowly than revenue. Better yet, manage to keep it growing more slowly than your gross profit. After all, that’s the number that pays all your overhead expenses.

So, if in the past you tried to have an average annual salary increase of 4%, consider having an annual total compensation expense increase of 4%.

This way of thinking requires some trade-offs. If health insurance is going up a bunch, it may eat up some of the funds that would otherwise be available for raises.

This approach also requires you to have some frank discussions and some educational sessions with your employees. Most are probably unaware that you pay FICA, Medicare and unemployment taxes. They may not know about your cost for their health insurance, worker compensation insurance and other benefits. One way to drive home the total cost to the company is to prepare a year-end summary for each employee, detailing each compensation-related expense.

Eliminate the chaos and take control. Spend some quality time once a year doing this admittedly hard work, and the rest of the year you can focus on growing your business.

Create a Simple Company Procedures Manual

Virtually everyone recognizes the importance of having an office procedure manual, but actually creating one is a big job, so it doesn’t get done. Here’s a SIMPLE way to get it done:

1) Buy an ordinary three ring binder. Mark it “Procedure Manual.”

2) Put some ordinary lined notebook paper in it. Congratulations! Your company now has a procedure manual!

3) Have everyone in the company contribute to the creation and upkeep of this manual. Whenever a repetitive task arises, the most likely person (whoever does that task) takes a few minutes to hand-write a procedure on one of the blank pages. Give it a title so it’s obvious what it’s for.

4) Assign an administrative person the task of periodically taking these hand-written procedures and typing them into a computer using a word processor program like Word. Put a “Revision Date” on each one so you always know whether you’re looking at the most current version. Replace the hand-written procedures with those printed from your computer.

5) Add to it and tweak it over time. It’s never really “done.”

That’s it. The hard part may be getting your employees to stop “winging it” and to actually follow your new procedures.