New World/New Rules

I recently read an interview of Jeff Bezos, the CEO of Amazon.com. The focus of the article was on the Kindle, their ultra-cool wireless reader.

When the Kindle was launched, the breakthrough wasn't in the concept; the first e-readers were introduced over a decade ago. But they were the first to finally get it right, addressing everything from the light weight of the hardware, an easy to read screen and access to a wide-range of books.

But I think the real breakthrough was that it was Amazon that put the whole package together, and not Apple, Intel or even Research in Motion, all of which are in the business of manufacturing computer hardware. After all, Amazon is a retailer; they're supposed to sell other people's stuff, not make it. Yet they broke some rules and did it anyway.

I like Jeff's explanation for how this came about. Here's what he said:

"There's a tendency, I think, for executives to think that the right course of action is to stick to the knitting—stick with what you're good at. That may be a generally good rule, but the problem is the world changes out from under you if you're not constantly adding to your skill set."

Maybe Jeff should have said, "It used to be a good rule." We're all witnessing how quickly products and services are becoming obsolete. That suggests that companies need to assume they're going to have a short lifespan, or instead they need to become much more creative and much more aggressive about how they define themselves in the marketplace.

Amazon took a risk when they stepped out of their routine, but it has clearly paid off. The Kindle is now their #1 selling product. I can't wait to see what their next reinvention is going to be!

Jennifer

Even “Dear Abby” Knows the Score

I still like to read the print version of the newspaper, and when I'm paging by "Dear Abby" I'll usually take a quick look at the trials that other people are having. While the juicy stuff is often about a social or family dilemmas, businesses should take notice of a recent post.

"Bitter in the Northeast" wrote in to complain about her job situation. Apparently, she is a good performer, based on her reviews, but because of the economy she hasn't had a raise in two years. If things were bad across the board, she wouldn't mind too much, but she's observed that the company owner has recently bought a new luxury car and taken some nice vacations. Her question to Abby was, does she have a right to be upset and feel that she's being taken advantage of?

Here's what Abby said, in its entirety:

"If your employers are claiming poverty while indulging in conspicuous consumption, your feelings are understandable. And as soon as the job market improves, I'm sure you will be only a part of the stampede of fellow employees seeking another job. With your outstanding reviews it shouldn't be too difficult to find one. Bide your time."

As the economy starts to warm up, the smartest and most talented employees will be thinking the same way—how has my company treated its employees during these past difficult months? Is this the kind of place I want to continue to make as my "business home"? And if "Dear Abby" is even arguing to leave rather than negotiate an equitable solution, than you know the predicted "stampede" is starting to form on the horizon.
Jennifer

Opportunity in Strengths

One of the strategies we use in our change practice is to start new initiatives by learning more about an organization's strengths. There is a lot of great research emerging that demonstrates that if you start change efforts by focusing on what's working well, you set the stage for a better solution.

We sometimes get push back on this concept…isn't it a distraction? Wouldn't it be better to get right to the problem so we can solve it and move on? While that may feel like the most direct route, it's not necessarily the fastest, especially if you judge the effectiveness of your effort by the quality of the solution, the degree of commitment and even the total time expended to achieve the end goal.

That's because when you start with strengths, it sets a series of positive changes into motion…you feel less defensive about the problem because you've been reminded of what's right in your world; you're actually more creative in your thinking (this has been proven by neuroscience); your strengths may serve as a resource for the solution you choose, so it's good to be clear on what they are. There are more reasons, but you get the idea. You might think of it as "priming the pump;" if you take that extra step up front, it will save you a lot of additional effort along the way.

A researcher at Berkeley, Dr. Christina Maslach, has uncovered the same idea through her work, and ironically enough she studies job burnout. According to Dr. Maslach, it's not particularly useful to focus on the trouble spots in a company in order to avoid burnout. As she says, "It's not just about how you get rid of the negative - it's how do you build the positive?" And when you start with what works well, you set a clear, positive direction for whatever you choose to do.

Jennifer

The Social in Social Media

Social media is a hot topic in business, and it should be since it represents great new sales and marketing capabilities for companies to explore. But some of the real value of this technology is often overlooked as we focus on its edginess and efficiency. Ultimately, I believe the greatest power in these new tools is in their ability to connect people.

This statement isn't meant to be either obvious or casual. One of the most important theories in change management today is that change is a function of people coming together and having conversations that impact thinking and prompt behaviors and actions. Essentially, "words create worlds." The universe isn't a fixed entity. It's dynamic and constantly evolving, and the force for these ongoing changes comes from people.

When Scott and I are with clients, we put this theory into motion. Right from the beginning, we listen and ask questions, with the goal of understanding not just the client's current environment, but to put our finger on the pulse of where they want to take their company in the future, and the bigger the thinking, the better. And these conversations aren't just with leaders; they're with literally everyone in the organization. We know from experience that the more people who are engaged in the process, the easier it will be to bring the solution to life.

The first reaction of people when they hear this is that it sounds slow and cumbersome. How do you achieve a common vision? Isn't it easier to make fast decisions with a small group and then move on to implementation? But just the opposite turns out to be true. Since everyone becomes actively engaged in the upfront thinking that leads to decisions and actions, they really get it. That means you don't need big communications campaigns or the challenge of "selling" your vision. They're ready to go, and boy, can they go! Right now, we have a client that says he can barely keep up with all the changes that are starting to happen inside his business, all of which is being done by teams of people across the company. And he can't be more delighted with the direction they're taking.

So we welcome all that social media brings us, since it enhances our ability to engage people in exciting conversations that can change the future.

Jennifer

Zappo’s Weirdness Culture

I friend of mine recently said, "If you're going to talk about culture, then you have to talk about Zappos." Since I agree with him, thought I'd check that assignment off my list!

Zappos started in 1999 as an online shoe retailer, and much like Amazon got their start with books, they've expanded into other retailing categories. From the consumer's perspective, they're passionate about service and believe that sets the stage for their business model and growth potential. But viewed from inside the company, they achieve this vision through one primary means: by creating a fantastic culture. In fact, the CEO, Tony Hsieh, describes culture as his number one priority.

What is Zappos like? They work from a set of ten core values. Some of these values are common among other businesses ("Deliver WOW Through Service," "Build a Positive Team and Family Spirit"). The one though, that I think speaks to the heart of who they are is "Create Fun and a Little Weirdness." "Weird" is their way of saying they value the individual…that everyone has something unique to offer, and it's those special talents that will make the difference in Zappos' success. So they're all about finding ways for each person to make a contribution and stand out from the crowd.

It was also weirdness that drove the creation of the values, as well as the ongoing evolution of the culture. When they were first starting out, Tony asked the organization to identify the values that would be most important, and they spent a year working through the discussion. So in the process, they imagined the company they most desired, and collectively gave it some shape and form. With that as a foundation, they now expect everyone to continually bring their culture to life, in whatever they choose. (By the way, that means their culture is constantly evolving to meet the needs of its employees, so a company who tries to "copy" it is going to be chasing a moving target!)

And by the way, Amazon bought Zappos last summer for close to $900 million, so a focus on building a fantastic culture clearly leads to the kind of business success investors are looking for.
Jennifer
P.S.  If you do want to learn the secrets of Zappo's culture, then buy their book about it.  It's written by the employees every year!
http://www.zappos.com/zapposcom-gear-zappos-culture-book-2009-edition-n-a

More Evidence that Engagement Pays Off

Another study was recently published which makes the link between employee engagement and profitability. This one was done by the Workplace Research Foundation in cooperation with the University of Michigan. (Full disclosure: Michigan is my alma mater. Go Blue!)

This was a hefty project. It took place over seven years (2001 to 2007) and looked at survey data from 3490 employees at 841 corporations that were listed in the Wall Street Journal 1000. Apparently this WSJ index covers 98% of the US gross domestic product, so the sample clearly cuts across Main Street.

What the researchers learned was that for every five points added to a firm's Employee Motivation Index—the instrument they used to measure engagement—it returned an additional 2% in stock price the following year.

Palmer Morrel-Samuels, PhD, was the lead author of the study. In describing his perspective on engagement, he makes a point to distinguish it from employee satisfaction. A satisfied employee is not necessarily productive; they may simply like the work environment. In comparison, when an organization is encouraging engagement, "It has to do with the intellectual challenge, pride in developing a sense of mastery and the need to make a contribution to both your job and society."

I've always believed that an enlightened organization sets in motion a wonderful virtuous circle of success. As employees become more engaged, they act in ways that benefit the organization and its customers. This in turn generates a handsome profit for the company, creating a solid financial foundation as well as the ability to reinvest in their best asset—their people. So for anyone needing a reminder, this study once again demonstrates that businesses and the people they touch all benefit from a healthy, vibrant workplace.

Jennifer

People are Messy

I recently facilitated a conference for the Forum for People Performance Management, and one of the livelier discussions was on the theme, "People are Messy." We were grappling with the idea that businesses have a wish for employees to be entirely predictable and dependable in their behavior. By this we mean they're never absent at inconvenient times; they never make a mistake, especially when it really matters; they don't bring personal concerns with them when they show up for work, whether it's broken pipes or sick children; the list goes on.

But in reality, people are messy, and we're messy because we're human. Things go wrong in our lives, mistakes are made and companies are impacted. However, instead of creating policies with the intent of limiting or controling the messiness, what if we simply accepted the reality of it, and designed organizations that acknowledged it?

For example, what if you abandoned the idea of set office hours, and instead told everyone to establish their own work schedule? That's what Best Buy did. Or what if you enacted the belief that productive work can happen anytime and anywhere, and rather than assign everyone a dedicated cube, you had them check out a desk to work at (assuming they needed to be in the office that day.) This practice is called hoteling, and IBM and Microsoft are among the many that use this strategy.

These are simple examples, but the idea is that when you take actions that are designed to reign in the messiness, you're probably going to fall short of your vision. And you also end up with unintended consequences. In the end, you're better off creating a system that can be easily adapted to the needs of many. The result will be an environment that ultimately brings out the best in people, even when they're being messy.

Jennifer