Less Control Can Mean Better Results

January 26, 2013

JoystickThe advice in the title sounds backward, doesn’t it? The typical knee-jerk reaction when things are not going according to desires at work is for managers to add more controls. This is an effort to get more people to do what they are supposed to do, so performance will improve. Only one problem: most of the time greater control translates into lower performance.

The reason why more control is usually the worst course of action has to do with motivation. In most organizations, there is already too much control over what people do. Policy manuals and specific rules for how we do things are installed for a reason, and woe be to anybody who breaks the rules.

The signal being sent by management is that they do not trust people to do the right thing. When managers heap more rules onto the already steaming pile of procedures, people become more disillusioned, and motivation takes a hit. Result: people comply begrudgingly, but will not go beyond simple compliance. The organization suffers as workers leave most of their discretionary effort on the front steps.

Great managers realize that by reducing the control, performance often increases and does so in dramatic ways. In Smart Trust, Stephen M.R. Covey and Greg Link give ample evidence that when employees are trusted to do what is right, they normally rise to the occasion, and remarkable things start to happen. The book has literally hundreds of data points to show there is a definite trend here, but one example, in particular, caught my eye.

I like the story of Gordon Bethune, who took over the helm at Continental Airlines in 1994. At that time, Continental was approaching its third bankruptcy, and performance measures in all areas were the worst in the industry. The workers had been so abused by managers applying onerous rules and regulations that they were just going through the motions, and Gordon did not blame them. He was smart enough to recognize he would need to repair their spirits before he could get them to perform. He likened the daunting task of turning around their enthusiasm to being the adopted parents of severely abused children. He would have to earn their trust before he could begin to restore their enthusiasm for the work. But how could he do that?

In a number of steps, he started to show employees that he had more faith in them than in the rule books. In fact, at one point, he had company policy manuals taken out to the parking lot where he had them burned publicly. Rather than rely on controlling rules, he let the people know the objectives and broad operating methods, but let the employees use their own judgment in making the decisions on day-to-day activities.

Over the next decade, Continental Airlines, with this new philosophy of fewer rules and higher trust, began to win customer service awards. Their stock price went from $2 to over $50, and in Bethune’s final year, Fortune ranked Continental the Most Admired Global Airline. Let’s sum it up. Fewer rules and higher trust allowed a nearly dead airline to rise to a predominant position. Why? Because the power of the people is what you need to run any successful organization.

Covey and Link give a five part formula in the book that creates a pathway toward an enduring trust that is neither blind or naive. It is what they call Smart Trust. I recommend the book for any manager who is struggling with poor performance and a situation of over control.

It is important not to just throw away all procedures, because some of them are needed for legal purposes or to ensure standard practices in complex and critical situations. Managers should stop trying to account for every situation that might go wrong. They should stop trying to direct people how to react to every single scenario, because it chokes out the creativity and enthusiasm of the workforce.

The secret is to have specific processes only where they are needed, and allow people to use their brains when an off-standard condition requires quick thinking. For example, there may be a set procedure for investigating the situation before granting a customer refund, but there will be times when it is wiser to ignore the rule and immediately accept the customer’s word.

When managers allow people to use their God-given intelligence, they nearly always do the right thing, and if they make a mistake it is usually a small one. If the rulebook is so heavy that it takes hours to find out the proper way to react to a given situation, what you will get is simple compliance most of the time, but you will miss the opportunity to have a fully engaged workforce.


Is Bribing Employees Ever OK?

December 16, 2012

bribeIs it ever a good leadership to bribe your employees? I recently asked that question in an online leadership class. We got into a very interesting discussion that highlighted the difference between four words that are often confused by managers. Those words are bribe, incentive, reward, and reinforcement. The world will not come to an end if these words are mixed, but since they represent different concepts in motivation theory, it would be wise to use them correctly.

All four of these words have the connotation of influencing people to do the things we would like to have them do. The distinction is that two words typically apply before an action is taken while the other two words usually apply after the action.

The word bribe is a well-known and loaded word. In common usage, it means we are offering people something they want in pre-payment if they will do something that they would not normally do. For example, in some cultures it is expected that airline passengers going through customs will give the customs officer some kind of “tip” in order to process their bags without hassle. That is a bribe, although we would never use the word in front of the customs officer. We have all heard stories of individuals arguing with a policeman about a potential speeding ticket and trying to offer some kind of bribe to have the ticket waived. These individuals often find a bribe is not only unsuccessful, it can lead to dire consequences.

The second type of pre-agreed payment is called an incentive. This is where a leader will challenge people to do more than expected, and they are promised a specific payment if they do it. Usually with incentives, there is no stigma associated with doing something wrong; it is merely an encouragement to do more of what is right.

Sometimes the incentives are built into a compensation plan such that they really don’t appear as separate incentives, but certainly have that same feel. For example, commissions paid for certain levels of sales are types of incentives. They are a promise made ahead of time to pay a certain amount based on the employee performing at a certain level.

When employees perform better than expected, for any number of reasons, leaders often give them extra compensation after the fact. These payments are called rewards. Often, the compensation is a token amount in recognition of the actions by the employee and are not intended to fully pay for the extra effort. Instead, they are a kind of thank you for going the extra mile.

The area of rewards can be a minefield, and there are numerous books on the potential mistakes when trying to reward people. For example, if a leader rewards an individual for a job well done, often other people feel slighted because they expended as much effort or provided more benefit to the organization than the person being rewarded. There are numerous other problems that can come up that can be devastating. It is not uncommon for well intentioned supervisors to create ill will by applying rewards poorly.

A final category is called reinforcement. Like rewards, reinforcement is something that is usually applied after actions have been taken. Reinforcement is more general than rewards. It seeks to make people feel appreciated and thanked for the things they have been doing. Usually reinforcement takes the form of verbal or written praise as opposed to tangible gifts or direct compensation. Reinforcement takes hundreds of different forms and can be as simple as a “thank you” or as complex as a group-wide celebration.

The words discussed in this article are sometimes used inappropriately. One might refer to what was intended as an incentive as some kind of bribe. Or someone might think of a form of reward as being simple recognition. It is instructive to realize there is a difference in behavior modification between promising an incentive ahead of the act versus providing a reward after the act has been completed.

To be an accurate communicator, it is important to use the right words for each application. If one of the four words described above is used in the wrong context, it can send mixed signals about a leader’s intent. That will cause a lowering of trust within the organization, and it will eventually show up on the bottom line.
Be careful when using these words to use them accurately. The concepts involved in behavior modification are critical to having people experience higher motivation as a result of reinforcing actions by leaders. They are powerful concepts, but they can be easily misused.


Stretched Too Thin?

July 22, 2012

We hear that the only sure things in life are death and taxes. If you are a manager, one sure thing is that people will tell you there are not enough employees to do the job. I have yet to find an organization where the workers do not feel stretched beyond their ability.

Productivity makes an interesting study, because most behavioral scientists agree that in any organization the actual productivity is a small fraction of the capability inherent in the people. Research reported by the Gallup Organization in 2010 indicates that for average organizations, only 33% of the workers are engaged, 49% of them are not engaged, and 18% are actively disengaged. This low productivity is usually not the fault of the workers, but the result of a poor culture established by top leaders.

The paradox here is that while there is a perpetual outcry for more people in most organizations, the human resources that are available are grossly underutilized. By establishing a culture of higher trust, managers can change the equation dramatically.

We do not need more people; we need better utilization of the people we already have. How do we solve the age-old mystery of getting higher levels of effort and engagement on the part of people? The irony is that when managers look to improve productivity, they often focus on numerous other things and forget that true productivity lies with the motivation of people.

For example, I read an interesting article on productivity in the Encyclopedia of Management 2006, which gives 17 ways to improve productivity in an organization. They are:

1. capital investments in production
2. capital investments in technology
3. capital investments in equipment
4. capital investments in facilities
5. economies of scale
6. workforce training and experience
7. technological changes
8. work methods
9. procedures
10. systems
11. quality of products
12. quality of processes
13. quality of management
14. legislative and regulatory environment
15. general levels of education
16. social environment
17. geographic factors

Notice the amazing lack of motivational aspects in this list. The only factor in the whole list that has much to do with motivation is item 13, quality of management. True, we can improve productivity with capital investments or systems, but the real gold is changing the morale of the people doing the work. That takes an investment of a different kind. My thesis is that the missing ingredient in productivity is trust.

The Trust Across America Organization has gathered some compelling data over the past decade that shows corporations with high trust achieve 500-600% greater returns than the S&P 500. So productivity, and the resulting profits, are available if we can only educate leaders on how to build and maintain higher trust. That revelation means we can stop whining about not enough people and start focusing more effort on the skills needed to grow trust.

Improving the level of trust in an organization starts at the very top. The most senior managers must recognize it is their behaviors and the signals they send that set the tone for everything that happens in their organization. There are several groups and consultants, including myself, who specialize in helping organizations understand the pathways to higher trust.

I recommend that all top managers have a key thrust to change their behavior patterns so that trust begins to grow from the highest levels. Once started, the improvement in trust will naturally flow down through the entire organization, and the first thing you know, the outcry for more people will become muted. The employees are there just waiting to put their shoulder into the work once they are treated the right way.


Death by Micromanagement

May 27, 2012

Everybody hates to be micromanaged. So why do so many managers do it? We know that overbearing, but well intended, managers micromanage all the time in an attempt to optimize performance. I will identify the cure for this habitual dilemma in this article.

The problem is that by micromanaging people, the manager is severely limiting performance rather than optimizing it, so the manager is operating at cross purposes to his stated goal. Unwittingly, the manager is removing incentive for effort and creativity on the part of the employee. We are so familiar with this problem simply because it is rampant in our organizations (Bielaszka-DuVernay, Harvard Business Review, June 23, 2008). Let us contrast micromanagement versus trust to give some insight on how the latter leads to greatly enhanced performance.

To micromanage someone implies a lack of trust. The manager is not confident the employee can or will do a job correctly, so the employee is besieged with “helpful” instructions from the manager on exactly how to perform tasks. At first, the intrusion is simply irritating to the employee, who has her own ideas on how to do the job. After a while, it degenerates into an opportunity to check out mentally and join the legion of disenchanted workers doing what they are told and collecting a paycheck. This leaves the employee’s power on the door step of the organization every day.

Another drawback is that employees will try to avoid a manager who tends to micromanage, simply to reduce the aggravation. This leads to a circular decline, where the manager has less and less information, so he tries even harder to intervene and direct activities. This makes people want to avoid him even more.

To trust an employee is to think enough of the person to treat him or her as a thinking person who can have good ideas if given a goal and some broad operating parameters. In an environment of trust, employees have the freedom to explore, innovate, create, stretch, and yes, sometimes make mistakes. These mistakes can be thought of as waste, but enlightened leaders think of them simply as learning opportunities.

Here are nine ideas that can help leaders and managers reduce the tendency to micromanage, thus unleashing a greater portion of the power available to the organization.

1. Set clear goals and make sure your employees have the basic skills and tools to do the job.
2. Be clear on the broad constraints within which the employee must operate. In other words do not let the employee try to conquer the world with a tuna-fish can.
3. Express trust in the employee and encourage creativity and risk taking as long as the risks are well-considered and safe.
4. Reject the temptation to step in if the employee seems to struggle, rather make yourself available if there are any questions or requests for help.
5. Provide the resources the employee needs to accomplish the tasks.
6. Do not totally overload the employee with so many duties and projects that she cannot succeed at any of them.
7. Express praise and gratitude for positive baby steps along the way.
8. Give the employee time and space to try different approaches without having to explain why she is doing every step.
9. If problems occur, consider them as learning experiences and ask the employee to describe how she will do things differently next time.

These nine ideas are all simple, but they are nearly impossible for a micromanager to accomplish without constant effort. The concept of trusting employees does involve some risk, but the rewards of having people working up to their full potential rather than just complying is well worth that risk. You will see better, faster, and more robust solutions if you trust people and let their natural talents surface in an environment of less micromanagement.


Leaders: Hold Yourself Accountable

April 29, 2012

Several managers I know are fond of saying “we have to hold our people accountable.” I think the process of making sure people need to step up to responsibility is a good one, but it really needs to start at the top. Unfortunately, I see many top leaders failing to hold themselves accountable first.

Let’s envision a plant manager who has a problem of extremely low morale in the factory. The supervisors are telling the manager that people are upset because of no raise in 3 years and the threats of layoffs. They are tired of being abused and kept in the dark. The productivity is at an all time low, and the only way to take cost out is to further reduce the workforce. If you were that manager, how would you go about engineering a rapid turnaround in the performance of your plant?

One interesting strategy is push your chair back from the desk, stand up, walk down the hall, go in the bathroom, look in the mirror, and ask yourself some tough questions like the following:

• Morale is terrible in this plant, and as the manager in charge, how have you been contributing to this problem?
• What is preventing you from fully holding yourself accountable for this awful situation?
• In what ways have you been trying to lay the blame on the supervisors, employees, bad economy, suppliers, business downturn, competition, etc., and how can you deal with the current situations and business environment in a more empowering and effective way for all concerned?
• What fundamental changes in the structure, behaviors, values, and vision are you going to make to completely change the environment?
• What behaviors do you need to change, starting right now, to build a culture of higher trust?
• In what ways can you change the attitudes of the workers by changing your own attitudes and behaviors?
• Since bonuses, or picnics, or parties, or hat days are not going to have much impact on long term motivation, how can you find out what really will inspire people and then implement the proper changes to the environment?
• How can you be a better mentor for your supervisors as well as train them to be better mentors to their own staff?
• How are you going to find a way to quadruple the time you have available to communicate with people?
• Do you need assistance to solve these issues? If so, what kind of help could you use and where can you find it?
• How can you know if or when it is time to pursue other opportunities and let someone with a different skill set handle the turnaround?

Yes, that is tough medicine, and yet I believe if the cold realities in these questions were internalized by some top leaders, conditions might start to change. It is only through the behaviors and attitudes of the top leaders that real changes can be made in an organization. Once top leaders step up to their own accountability, then the rest of the organization will quickly become enrolled in a new and positive vision for the enterprise.


Real Motivation

April 8, 2012

Every manager I have ever met, including myself, would appreciate higher morale and motivation among his or her team. After all, these two attitudes lead directly to productivity and employee satisfaction, which are pivotal in sustaining a healthy business. Many managers have a stated goal to improve morale, motivation, or both. I contend the mindset inherent in setting goals for these items shows a lack of understanding that actually will limit the achievement of both.

The reason is that morale and motivation are not objectives; they are the outcomes of a great or a lousy culture. If you spend your time and energy trying to improve the environment to include higher trust, then higher morale and motivation will happen. If you try to drive morale, it may sound to the employees like the famous saying, “The beatings will continue until morale improves.”

I have seen a group of people at work with such low motivation, there seemed to be no way to get any work done. If a manager dared try to speak to a group of employees, they would heckle or just pay no attention. Nothing the leader said or did had much impact on the employees, so in desperation, the manager would stoop to threats. This would elicit a half hearted groan and some compliance for a time, but the quality of product would suffer, and the gains would be only temporary.

I have seen that same group of workers six months down the line after putting in a really good leader. The atmosphere was entirely different. The employees showed by their body language that they were eager to do a great job. If there was a dirty or difficult job and the leader asked for volunteers, half a dozen hands would go up immediately. When they were at work, they resembled the seven dwarfs whistling while they worked rather than slaves in the belly of a ship being forced to row.

How was that one leader able to accomplish such a turn-around in just six months? The leader focused on changing the underlying culture to one of high trust rather than just demanding improvement in the performance indicators. The motivation and morale improved by orders of magnitude as a result rather than because they were the objective. Let’s look at some specific steps this manager took early in her term that turned things around quickly:

Built trust – She immediately let people know she was not there to play games with them. She was serious about making improvements in their existence and had that foremost in her mind. She built a real culture where people felt safe to come to her with any issue and know they would not be insulted or punished.

Improved teamwork – She invested in some teamwork training for the entire group, offsite. These workshops made a big difference in breaking down barriers and teaching people how to get along better in the pressure cooker of normal organizational life.

Empowered others – She made sure the expectations of all workers were known to them but did not micromanage the process. She let people figure out how to accomplish tasks and got rid of several arcane and restrictive rules that were holding people back from giving their maximum discretionary effort.

Reinforced progress – The atmosphere became lighter and more fun for the workers as they started to feel more successful and really enjoyed the creative reinforcement activities set up by their leader. She let the workers plan their own celebrations within some reasonable guidelines and participated in the activities herself.

Promoted the good work – the manager held a series of meetings with higher management to showcase the progress in an improved culture. The workers were involved in planning and conducting these meetings, so they got the benefit of the praise directly from top management.

Set tough goals – It is interesting that the manager did not set weak or easy goals. Instead, she set aggressive stretch goals and explained her faith that the team was capable of achieving them. It first, people seemed to gulp at the enormity of her challenges, but that soon gave way to elation as several milestones were reached.

Support – The manager supported people when they had personal needs, and made sure the organization received the funding needed to buy better equipment and tools.

Firm but fair – The manager was consistent in her application of discipline. People respected her for not playing favorites and for making some tough choices that may have been unpopular at the moment but were right in the long run. Her strength was evident in decisions every day, so people grew in their respect for her.

This manager turned a near-hopeless workforce into a cracker-jack team of highly motivated individuals in six months. Morale was incredibly high. Even though improving morale was not her objective, it was the outcome of her actions to improve the culture.

If you want to be one of the elite leaders of our time, regardless of the hand you have been dealt, work on the culture of your organization rather than driving a program to improve morale and motivation. Develop trust and treat people the right way, and you will see a remarkable transformation in an amazingly short period of time.


Motivation Mistakes

February 4, 2012

How many times a week do you hear, “We’ve got to motivate our people?” This is usually followed by an idea or two to try to entice people to be more productive. Seeking to motivate employees is a thought pattern leaders use every day, so what’s wrong with it?

Trying to motivate workers shows a lack of understanding about what motivation is and how it is achieved. Leaders who think this way rarely get the increased motivation they seek. Reason: Motivation is an intrinsic phenomenon rather than something to be impressed upon people.

The only person who can motivate you is you. The role of leaders is not to motivate workers, rather it is to create the kind of culture and environment where workers are inspired and choose to motivate themselves. An example is when a leader sets a vision and goals, then allows people to use their initiative to get the job done as they see fit.

Why do many leaders try to motivate people by using either incentives (like bonuses) or threats (like penalties)?

1. Poor understanding of motivation – The notion that by adding perks to the workplace we somehow make people more motivated is flawed. Over 50 years ago, Frederick Herzberg taught us that increasing the so-called “hygiene factors” is a good way to reduce dissatisfaction in the workplace, but a poor way to increase motivation. Why? – because goodies like picnics, pizza parties, hat days, bonuses, new furniture, etc. often help people become happier at work, but they do little to impact the underlying reasons they are motivated to do their best work.

2. Taking the easy way out – Many leaders believe that by heaping nice things on top of people, it will feel like a better culture. The most direct way to improve the culture is to build trust. By focusing on a better environment, managers enable people to motivate themselves.

3. Using the wrong approach – It is difficult to motivate another person. You can scare a person into compliance, but that’s not motivation; it is fear. You can bribe a person into feeling happy, but that’s not motivation; it is temporary euphoria that is quickly replaced by a “what have you done for me lately” mentality.

4. Focusing on perks – Individuals are willing to accept any kind of treat the boss is willing to dish up, but the reason they go the extra mile is a personal choice based on the level of motivational factors, not the size of the carrot.

A better approach to create motivation is to work on the culture to build trust first. Improving the motivating factors, such as authority, reinforcement, growth, and responsibility creates the right environment for motivation to grow within people.

How can we tell when a leader has the wrong understanding about motivation? A clear signal is when the word “motivate” is used as a verb – for example, “Let’s see if we can motivate the team by offering a bonus.” If we seek to change other people’s attitude about work with perks, we are going to be disappointed frequently. Using the word “motivation” as a noun usually shows a better understanding – “Let’s increase the motivation in our workforce by giving the team the ability to choose their own methods to achieve the goal.”

For an organization, “culture” means how people interact, what they believe, and how they create. If you could peel off the roof of an organization, you would see the manifestations of the culture in the physical world. The actual culture is more esoteric because it resides in the hearts and minds of the society. It is the impetus for observable behaviors.

Achieving a state where all people are fully motivated is a large undertaking. It requires tremendous focus and leadership to achieve. It cannot be something you do on Tuesday afternoons or when you have special meetings. It is not generated by giving out turkeys at Thanksgiving. Describe motivation as a new way of life rather than a program or event. You should see evidence of motivation based on trust in every nook and cranny of the organization. Focus on improving the culture rather than using carrots or sticks to create true motivation.


Leadership Mentors

October 30, 2011

In my work, I consult with management and leader groups at all levels in organizations of all sizes and types. We normally think of each group as being unique. They have their own style, idiosyncrasies, type of work, environment, and goals, yet I have found most groups to have many similar aspects.

In any group, you will find a core of dedicated and cooperative individuals who are there to help and earn a living. They have basically the same hopes and dreams, although each one has his or her unique story to tell. Then you have a few superstars who are really trying to get the most out of every experience. They shine above the others in many ways. Finally you have the slackers and trouble makers. Even though their numbers are less than 10% of the population, these people take up roughly 80% of the time of their managers. They often feel that life has dealt them a rotten hand, when it is really their own attitude that is usually causing their misery.

When I meet with a new management team for the first time, the manager often tells me “we’re different here,” and yet when you consider the entire group, despite any other differences, they are usually similar to the pattern I described above. It takes me less than 5 minutes to scope out the distribution for that particular group. Usually it is very close to a normal distribution, but occasionally I will find a group that is either much better or much worse than the norm. For those outlier situations, there is often a relationship between how people are treated and how they react. If people are treated well by leaders, the group will be better than average. If people are misused by leaders, then you find a group with more problems.

The people in a dysfunctional team can be made more positive if the leader finds ways to improve his or her own skills. The good news is that it takes people only a short time to become more motivated. The transformation can take as little as six months. The leader would have culled out the cancerous elements of the team to allow the healthy cells to shine through and work up to potential. The leader would have set up expectations and gained the respect of everyone. Trust would be in evidence every day.

Reverse the situation and put a less-skilled leader in with a high performing team, and the team will lose its edge quickly. People will start acting as if they are playing games with each other, and trust will be reduced. In that environment, some problem individuals will quickly surface to bring down the average performance of the team.

I have seen the above pattern work in both directions so many times over the past 40 years of observation that I am convinced there is a causal relationship. If you look around and see a need for higher quality leaders in your organization, it is costing you plenty.

I believe there is a shortage of excellent leaders, but I also believe with the proper mentoring and support, a majority of professional people have the innate capabilities to become good, if not great, leaders. So what is missing? The real shortage is a lack of mentors for future leaders. Reason: most highly effective leaders are consumed with trying to optimize things in their current environment, and they neglect the activities that would develop other leaders.

If you are not happy with the number of excellent leaders in your organization, ask why there are not more leadership mentors. Get some help to train all leaders not only to be better at their function, but to step up to the challenge of growing other leaders for the future.


Merger Miseries One

September 6, 2010

This is the first in a series of articles related to building trust and transparency in merger situations of organizations. This particular article focuses on how the complexity of doing a merger is often downplayed in organizations and gives one possible antidote that CEOs should heed before jumping head first into a merger.

Why are the hassles underestimated?

Mergers are usually considered in an attempt to pool strengths and eventually drive costs down to improve competitive positioning. It is normally envisioned as a way to survive, but frequently turns into a way to commit suicide.

Top managers who study the impact of a merger can readily see the tangible rewards, and the benefits look seductively attractive. The costs and hassles seem to be manageable, so not a lot of energy is spent on an organized campaign to mitigate potential negative aspects. The upfront cultural work is often neglected as managers just announce the merger and tell everyone to “work together and get along as new processes are invented.” This typically gets the venture off on the wrong foot, and it gets a lot worse before emotional bankruptcy, if not physical bankruptcy is reached.

Consultants hired to smooth the process focus on the benefits and the quick shot of cash from doing the merger. Their remuneration is tied to an efficient and speedy process, so they spend little energy on the blending of two cultures until the fan becomes very soiled. This pattern is so stubbornly consistent that one wonders why more caution is not exercised. Some groups have found ways to do mergers right, and I hope to add some value with tools and ideas that can contribute to the art.

One bit of advice is to be more conservative during the initial planning phase. First, assume your calculations of the benefits are order-of-magnitude correct, but quadruple the estimated time it will take to accomplish them. Next, take the projected investments required to achieve the benefits, as best you can estimate them in advance, and multiply that number by 10. Finally, take the best intelligence on how this merger is going to negatively impact customers and suppliers, and bump that up by a factor of 5X. That might be a reasonable approximation of a business case for the venture. If the merger still looks viable under those circumstances, then going on to the next steps is probably worthwhile. If the figures based on this more realistic scenario cause you to gulp, better read up on some of the horror stories of merger disasters in other organizations and check your medicine cabinet for antacids and tranquilizers.

Acquisitions gone bad are not hard to find. For example the Daimler-Chrysler merger in 1998 was a classic debacle that cost Daimler nearly $36 Billion over a decade. Just as a reality check, my calculation reveals this to be about $10 Million a day for 10 years. Large scale disasters like this are plastered on the front pages of business periodicals. Unfortunately, the more pervasive problem is the thousands of unsung smaller-scale disasters that go on continually within organizations of all sizes and types.

I am not saying all mergers are failures compared to intentions. I am sure there are some positive surprises as well. My thesis is that the track record does not indicate a positive result is most likely. In the coming weeks, I will be sharing many different aspects of the merger and acquisition business. We will look at the issue in both large scale mergers and in the tiny restructuring efforts that go on daily in most organizations. I would appreciate any comments, suggestions, or ideas you have along the way.


Life is a Mirror

March 10, 2010

We are all familiar with individuals at work, who constantly complain about the attitudes of other people. These depressing people can be a cancer in any organization, because they consistently lower the morale of other individuals. Of course, the irony is that these people are observing negativity in others, but really, it is just a reflection of their own negative thoughts and actions. They go around spreading gloom about others, when in fact, they are the perpetrators of the problem more than the other people.

I think it is fascinating to observe this phenomenon, and then ponder whether I am sometimes guilty of the same problem myself. When I get fed up with other people being negative, is it really just a reflection of something going on within me subconsciously? In other words, how can I determine if I am blameless? In fact, I am just as guilty as anyone else of observing negativity in others. It makes an interesting conundrum that appears to have no solution.

My challenge to you is to pause before observing negativity in other people long enough to ask yourself the question of whether it may be originating with you. That takes a lot of maturity, because it really is a lot easier to just complain about others.

We all know certain individuals who are world-class negative thinkers regardless of who they are with. I am not referring to the one-of-a-kind rotten apple in the barrel that everyone knows comes up on the negative side of things. Rather, I’m talking about a more generalized malaise where individuals observe most other people in a negative light.

It might be a healthy attitude when observing several people being negative to mentally say something like “I must be putting out a lot of negative energy today, because that’s what I observe coming at me from others. Let me test the validity of that by putting on a more cheerful demeanor and see if it has a positive impact on the current environment.” Who knows, you just might enjoy the benefit of seeing a lot more love and affection coming into your day.