Preventing The Decline & Fall of Your Corporate Culture

When you think about ancient cultures, it’s easy to wonder why we have not learned more from our collective pasts. Consider that the Egyptians were doing brain surgery and delivering infants through c-section long before contemporary medical practices. Concepts of social justice have also flourished then disappeared.  Great wisdom can be lost in the transition from one civilization to the next.

However, while that culture is thriving, what is it that perpetuates its success? In these electronic and print media days, it’s easy to believe that the written word does the job. Upon examination, however, the common denominator between the past and today is “word-of-mouth.”

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The Jolt! ? What Happens When Values Change?

A few years ago, I was shopping at Home Depot, and having a bad customer experience. They didn’t have anything I wanted and no one seemed interested in helping me. Checking out, I mentioned to the sales associate that the store didn’t seem the same. His reply, being a part-time employee and a first year business degree undergraduate, took me back: “Well, things have changed. We have a new CEO who is trying to shift the way we do things here and it doesn’t make any sense.”

Wow. If you ever suspected that values were critical, here was some proof. Home Depot had a new CEO, Bob Nardelli, who came to the organization from GE where he had been one of the top candidates for replacing Jack Welch. GE was a company that claimed much of its success came from a clear articulation and adherence to unique values. Ironically, when Nardelli and several other top executives left GE’s senior ranks to become CEOs at other companies they brought GE’s unique values with them to impose on their new organizations. Values, however, transcend generations and CEOs and are not easily changed without a significant emotional jolt. As expected, such a jolt usually brings a lot of pain and confusion.

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The Hardest Conversation

Most managers cite performance reviews as their least favorite activity, next to dismissal. Not only is it time-consuming, but it can also be an emotional confrontation which leaves both parties upset, dissatisfied and bitter. In last month’s column we discussed why “a lack of time” is no excuse. Now it’s time to talk about how to make that conversation a productive and positive one that actually deepens a relationship instead of straining it.

It takes courage to tell the truth about a report’s capabilities, performance and attitude. To tell the truth in a way that increases mutual understanding, respect and commitment takes more than courage¾it takes skill and a few tools. Let’s look at how this can occur.

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Turning Performance Reviews Into A Meaningful Activity

Performance reviews are like the spring cleaning of the managerial world. Everyone knows it needs to be done. No one wants to get to work and do it. Still, you’ve been tripping over those boxes, piles and stacks for so long now that you don’t even remember what’s in them anymore. And your spouse, or at least your human resources representative, has been nagging you to do something about it non-stop. If you stare into the depths of your computer screen long and hard enough, will that give you more insight into the capabilities and competence of your direct reports? Maybe this year we can resolve to make performance reviews a meaningful activity.

Here’s a statement I make about performance reviews which always gets an uncomfortable but affirming chuckle: “Most managers assess performance based on the last complaint they had within the previous four to six weeks.” Continue reading » »

Outsourcing Your Strategic Competitive Advantage

In tough times, all managers ¾ from the senior team to the middle ranks ¾ feel pressure to improve the bottom line. Unfortunately, the most expedient way to alleviate that pressure is by improving efficiency to achieve short-term profitability. All too often, this comes at the expense of the organization’s longer-term strategy. While managers get rewarded for this sacrifice with better quarterly numbers, their customers and rank-and-file employees suffer the consequences.

The efficiency charge has been with us for a while now. Many of the famous trends of the 1990s ¾ considered powerful new strategic tools at the time ¾ were no more than ploys to increase efficiency. Outsourcing, re-engineering, benchmarking, total quality management, sixth sigma and ISO 9000 activities all did their bit to make executives “look good” by improving the bottom line. Although each of these efforts did have an impact on efficiency, they had much less to do with strategic change than we were led to believe.

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