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April 29, 2010

The High Cost of Mistrust by Judy Bardwick

Filed under: Book Awards,General Management,Human Resources/Organizational Development — dylan @ 1:16 pm
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Judy Bardwick is the author of One Foot Out the Door, the winner of the first 800-CEO-READ Business Book Award in the Human Resources category in 2007. She coined the term “Psychological Recession” to describe “why your people don’t seem all that excited about coming to work these days,” and how that can affect your company’s financial health. You can read more about in an article she wrote for The Conference Board Review. In the post below, she discusses the true—very high—cost of mistrust.

The High Cost of Mistrust

Some of my very favorite examples of what to do come from examples of what not to do. Here are some of the worst I’ve encountered.

I well remember flying into Phoenix to meet with the CEO of a Fortune 500 company for the first time. After the usual pleasantries we sat down at a table, he grabbed my right forearm tightly, shoved his face close to mine and hissed, I want to kill them. I want to kill them all and I want you to deliver that message.

He was talking about his employees.

I looked him straight in the eye and said, That is your message and only you can deliver it. To my relief, I was swiftly removed from the building. What a sweetheart he was. I’m sure his employees were filled with feelings of trust and thrilled to be working for him.

When I was an undergraduate, I returned home for the summer and landed a job as a clerk at a manufacturer of women’s undergarments. To say I was underemployed barely touches the surface, but I didn’t care because my sole ambition was to earn the maximum I could while my father could still claim me as a tax deduction.

The management of our little unit was comical in its passionate lunacy of never letting us clerks out of their sight. We were monitored for the time we spent in the bathroom; we were required to clock in and out for lunch; we were monitored for break time. We were measured and noted and disciplined for time, while no one ever measured what we actually accomplished.

In this Alice in Wonderland setting the message was, your work doesn’t mean anything. And neither do you. You’re all so untrustworthy that without us, who knows what you’d do!

And we clerks reciprocated. As we were neither respected nor trusted, we returned the sentiment. In today’s vocabulary, we had become Actively Disengaged. Instead of concentrating on our work which, in any event, we could all do in our sleep, we spent hours thinking up ways to get our two managers in trouble. And we succeeded. We managed to get the attention of our managers’ bosses whenever our managers did anything unusually ridiculous. We did that so well that when a new operating system was introduced by corporate, one of us unworthy and untrustworthy clerks was put in charge of the new process and ultimately, of the office. What crocodile tears we shed!

United Airlines is consistently near the bottom rank among U.S. airlines in customer satisfaction. That may explain why it ranked higher in financial losses than American, Continental and Delta combined in 2008.

The United CEO won the Gold for Worst Management when, in addition to lousy service in a competitive industry where customers really do have choices, United decided on an adversarial relationship with their pilots—their pilots! Mechanics will likely be next. You can fly United, but count me out.

But United has a serious competitor for that medal: In March, 2007, Circuit City announced its plans to layoff 3400 employees. These days, that’s not news. The fact that the layoffs were of their more experienced and successful sales people who not only sold the most but were also a primary source of training for new hires did not make it the stuff of headlines. It was still not media material when the reason they were laid off turned out to be the fact that they earned $14-15 an hour and new hires got about $8. It wasn’t making the evening news, although it was getting closer because Circuit City’s competitive advantage in a very competitive industry was their experienced and knowledgeable salespeople.

The really newsworthy part of Circuit City’s plan, and the twist that put them in contention for the Gold for Inept Management, was they were willing to rehire their laid-off senior salespeople at the lower wage of a new hire. That literally guarantees a huge percentage of employees became Actively Disengaged, really motivated to do the company harm.

How might successful people who’ve been discarded and then rehired at an entry level wage feel about the company? We can guarantee that they would no longer be filled with the Milk of Human Kindness and gratitude to CC. How would they behave? Let me count the ways: they might steal merchandise or ignore thefts by others; they might bait and switch or just lie to customers, saying they had completely run out of an item the customer really wanted. They could recommend competitor’s stores to frustrated buyers; they could hard sell inferior but expensive products; they could work to the clock. When trust is replaced by mistrust, employees become Actively Disengaged from their work and the organization, and the ways in which they sabotage the business is limited only by their lack of imagination.

Trust is Always Critical

These examples have all come from the world of business. But the reasons why trust never develops, or mistrust replaces trust, are the same in every aspect of life. The dynamics of trust are the same in your personal life or your political judgments as they are in relationships at work.

Where there is mutual trust, there is mutual commitment and immense amounts of psychological energy brought to the mission or the relationship. This is called being Actively Engaged and it’s the condition in which the mission, the organization, and the relationship have the very best chance of flourishing.

Where the level of trust is borderline, so is commitment. This condition is called Engaged and when that’s the dominant feeling, commitment is weak and fragile. The Engaged state allows people to stay in a relationship or a job until either mistrust replaces trust or a better relationship or job comes along.

Where mistrust and Active Disengagement permeates most relationships, there is no commitment to the organization or any relationships. Instead, most of the time, the largest number of people are looking for ways to harm the organization or the person that has injured them.

When people’s behavior reflects their egotism, narcissism, greed, and especially hubris, we don’t trust them. When their need for power obliterates any possible mutual respect and takes the form of steel bonds of control, barked orders and micro-managing, they are never trusted. When they break their word and lie, either flagrantly by acts of commission, or more subtly by omission, they will not be trusted. When people show us no respect or trust in us, we will not trust them.

The absence of trust is not simply passive—that something is missing. Instead, in the vacuum of trust, mistrust rushes in and fills the void. Mistrust is dangerous and expensive. It means people expect the worst and behave in line with that. Rules to control behavior proliferate, but they are inevitably ineffective because only shared values and trust can really govern behavior. In the face of mistrust, cooperation and teamwork are merely slogans shouted out by executives in the face of increasing narcissism and territoriality. Mistrust means everyone watches their back and not anyone else’s.

Trust may be the single most critical building block underlying effectiveness. Without trust, “leaders” are impotent because they do not have followers. And without followers, nothing gets accomplished. No matter how great the insights and seminal ideas of the leader, without followers nothing will happen.

In every relationship, whether it’s a boss, or a politician, or a friend, partner or spouse, trust resides in the belief that there is no duplicity, no manipulation, and no narcissistic ego in the relationship. Like many profound things, this is really simple: trust rests on the belief that the other person and every act are transparent: This literally means, What you see is all there is.

And once there is no trust and mistrust is the norm, it is almost impossible to create or recreate trust. But “almost impossible” is not the same as absolutely impossible.

The only way anyone can recreate trust and a mutual, grounded relationship, is to be open, especially spontaneously open about how they feel and what they intend to do—and then follow through and do it. This is always an easy prescription to understand, but extremely difficult to do. The poisons of pride and mistrust, of guilt and remorse, of resentment of the past and desperate hopes for a better future makes it very, very hard to suspend disbelief and accept things at face value.

But doing the hard work of recreating trust is well worth doing because when mistrust prevails, believe me, the piper will be paid. And rest assured, no matter how many acquiescent smiles may appear on the face of those still feeling betrayed, the payback interest they will demand will be beyond money and can never be paid off. That’s why mistrust really costs.

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October 13, 2009

Working For You Isn't Working For Me Q&A

Filed under: Blog,General Management,Personal Development — Jon @ 9:18 am
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Katherine Crowley and Kathi Elster have spent years analyzing the effects of poor management, or to put it bluntly, working with a nutcase boss. Some people react by quitting, others give in and live miserably for years, but as the authors point out, there are much better ways to handle the situation. This insight is detailed in their new book, Working For You Isn’t Working For Me: The Ultimate Guide to Managing Your Boss.

Working For You Isn't Working For Me

Here are a few questions I sent the authors after checking out their book. Their answers hint at what a great read the book is, not only for those looking to gain sanity leverage in their job, but also as a guide for any manager to be conscious of how to treat and interact with their employees.

For most people, the short answer to a horrible boss is, “quit.” Why is this not always the best decision?

Kathi E. – Let’s face it, in this economy most people do not have the luxury to quit their jobs. Another reason why people should think before they quit, is the fact that there’s no guarantee that your next boss will be any better. We believe that once you understand our 4-step process (detect, detach, depersonalize, and deal) you can handle whatever kind of boss is thrown at you.

Katherine C. – Usually, if you’ve reached the “I want to quit” stage with a boss, your interactions with this person have also eroded your self-confidence. It’s very common for an unhappy employee to want to quit, yet feel insecure regarding his or her capabilities. Do I qualify for a better position? Would anyone want to hire me? These questions can plague an employee who wants to leave. That’s why we encourage readers to try our process – if you take the actions we suggest and still want to quit, you’ll be able to do it with confidence and conviction.

For some, the reaction to a bad boss might be to embrace their faults and try to befriend or understand them on a more personal level in order to show them your level of commitment when others have run screaming. Does this work?

Katherine C – I’m a psychotherapist, so I’m allowed to say this: Understanding is over-rated. It may feel helpful to understand why your boss is chronically late, or why your supervisor needs to take credit for your ideas, but it doesn’t really help you manage the relationship. Many employees try to analyze their bosses in an effort to feel a greater sense of control. While understanding what makes your boss tick on personal level may help you feel more compassionate towards him or her, dealing with the behavior requires more strategy.

Kathi E – Understanding your boss’s weaknesses and issues on a personal level can be worth the effort for some of us. The individuals who master this ability are what we call the unpaid therapists of the workplace. We suggest that if you do invest a lot of your time trying to understand the boss, you should be careful not to over compensate for his or her weakness. In other words, don’t do your boss’s job just because you understand his or her deep-rooted problems.

The book talks about detaching and depersonalizing, which seem ironic for the workplace. How can these be implemented to everyone’s advantage, and is there a limit to existing like this?

Katherine C. – Detaching and depersonalizing are terms we use to describe actions you can take to get some emotional distance from your relationship with the boss. Detaching from the boss is almost anti-intuitive because when you work for a difficult authority figure the natural tendency is to become obsessed with fixing the relationship. To detach is to let go of fixing the boss, and take back your personal power. By restoring your energy (through exercise or meditation), repairing your emotional state (getting support from family and friends) and rebuilding your confidence (writing down your successes every day, showcasing your talents in some way) you actually become clear-headed and grounded enough to effectively manage the relationship.

Kathi E. – The skill of not taking the boss’s bad behavior personally is also vital to success at work. Depersonalizing takes any of the remaining emotional turmoil out of your relationship with the boss. An important part of depersonalizing is figuring out what fears your boss may be triggering in you. We offer readers a Boss Baggage Assessment that identifies the needs, expectations and fears that they bring to any relationship with authority. Most people feel immediate relief after they take it.
For example, if you work for a very controlling boss, and you discover that you naturally challenge authority, then you’ll understand why this heavy-handed manager triggers your worst fears of being marginalized and dismissed.

The book covers a wide range of psychological profiles and how to deal with them. Are there any boss/employee profile combos that are ideal pairings? What are some tips for exploring that possibility in the interview process?

Kathi E. – What we call the extroverts (stars and challengers) work well with ambivalent bosses (scared cows, checked out, spineless) because the extroverts can run the office and shine. The caregivers (nurtures and harmonizers) can manage head game bosses (chronic critics, rule changers, under miner’s) because they are the ones these bosses tend to like.

Katherine C. – Once you know your own Boss Baggage, you can make it your job to interview any potential employer with questions that uncover their management style. Ask, “What kind of person does best here?” “How would you describe your management style?” Find out from past or current employees what they like best and what they find most challenging about working for this person. One general piece of advice, if you smell smoke (temper problems, bad boundaries, poor ethics) there’s usually fire. Based on your profile, you can decide whether a potential boss’s faults are manageable to you or unacceptable.

How can each of us prepare to not become bad bosses when given the opportunity to lead?

Kathi E. – We suggest that any new boss spend time learning how to manage people. Managing your team’s workload is important, but knowing how to motivate and lead people, will produce a better work product. Understand that people bring their baggage to work with them in the form of expectations, needs, and fears. It’s worth your time learning about the baggage that each person brings to your office. We suggest that no one hire without giving the potential candidate our Boss Baggage Assessment in Chapter 5 of Working for You Isn’t Working for Me. It will tell you all you need to know before you hire someone.

Katherine C. – Very often, the most competent worker is promoted to a leadership position. Rarely does a company consider whether this individual likes motivating and leading others. Part of what you might consider is whether you want to manage. It’s not for everyone. If you do decide to take on the challenge, be willing to learn communication skills and leadership skills as part of your professional development.

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October 9, 2009

800-CEO-READ Interview with Lisa Haneberg

Filed under: Audio,General Management — Todd Sattersten @ 5:31 am
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I have known Lisa Haneberg for a long time. She contributed an essay to my More Space project in 2005. She was in Milwaukee recently and we sat down and talked about all of her books (and there are eight of them).
Here is Lisa’s bibliography:

  • High Impact Middle Management
  • Organizational Development Basics
  • Coaching Basics
  • Focus Like A Laser Beam
  • Two Weeks To A Breaktrough
  • Ten Steps To Be A Successful Managers
  • Developing Great Managers
  • Hip & Sage

The interview is 22 minutes.
You can find Lisa at Managecraft Craft.

[podcast]http://media.800ceoread.com/view/9780891062455%20/audio/Interview_with_Lisa_Haneberg.mp3[/podcast]

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October 7, 2009

What's Your Next Move?

Filed under: 100 Best,Blog,Careers,General Business,General Management,Leadership,Personal Development — Jon @ 10:05 am
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Whether you’re going for that promotion, looking to jump ship, or change careers entirely, Michael Watkins’ Your Next Move is a book you’ll want to read. Any career change is a major event, and this is the kind of book that will prepare you for any kind of move, from dealing with exiting techniques, to international moves, to turnarounds, to working with new groups of people (who may, in fact, be ex-peers you are now supervising). This is a well-written, personal, and to-the-point guide that covers a lot of ground in a short time. Here’s part of the intro that describes what the book addresses:

“Dissect the CV of any successful executive, and you’ll see a series of high-stakes transitions into ever-more-challenging roles: from individual contributor all the way to general management. Through hard-won experience, the best and brightest get promoted and learn to lead others. They seek out greener pastures (and greater challenges) at new companies or business units–and learn to adapt to unfamiliar cultures. The path to still-greater corporate heights often leads them through international assignments or different functional areas of the business–and likely both. If all goes well, they win responsibility for whole businesses–and all that entails.”

It’s not just about ‘moving’ but about what happens when those actions are taken. Success or failure are the two options, and which option you emerge with will determine what happens going forward. Watkins’ book definitely has the research and insight to equip you for the better of the two paths. Another testimony to the author worth mentioning is that his previous book The First 90 Days, was included in Jack and Todd’s The 100 Best Business Books of All Time. That endorsement alone drew my attention to picking this one up, and after reading it, it’s clear that Watkins has another hit.

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September 25, 2009

Our Blog – Accredited Online

Filed under: General Business,General Management,Internet,The Company — dylan @ 8:39 am
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Jack copied me on his response to a message he received recently, writing “For an email out of the blue, this is a good one.” The message came from Adrienne Carlson, who runs the Accredited Online PHD University blog. She had written Jack to let him know that she included us in her recent post, 100 Awesome Blogs for Every Kind of Book Lover.

It’s a great list, with suggestions in a wide variety of genres—from business to comic books, from sites where you can sell your books to podcasts. If you have even a fleeting interest in books, you will want to check the list to see if you’re missing anything. I know my RSS list grew after just a cursory glance, and will likely grow even more when I find the time to dig in deeper.

We’d like to thank Adrienne Carlson for including us. It’s humbling and flattering to be put in such company.

Here is the direct link to that post:
http://accreditedonlinephduniversities.com/100-awesome-blogs-for-every-kind-of-book-lover/

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September 15, 2009

Strategic Thinking Month

Filed under: Blog,General Management,Human Resources/Organizational Development,Leadership — Jon @ 3:59 pm
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Headed by Josh Leibner, Gershon Mader, and Alan Weiss, authors of The Power of Strategic Commitment, September marks a time to re-evaluate strategy. In their book, the authors detail a variety of ways to align people around a mission, idea, or business.

Commitment is the reason systems like SixSigma, the HP Way, etc. have become benchmarks for corporate culture. A thorough and engaging book, focusing on fact and research over pure emotion, the book is a compelling read for managers and leadership well beyond the month of September. Here’s a great quote from the book that will give you a sense of the direction of the text:

“There is an enormous power in galvanizing people around a bold, compelling future; and that desired future state cannot be achieved by operating with yesterday’s mind-set, practices, and processes. There are two ways out of this inertia: One is an externally imposed “shock to the system,” such as a market or industry meltdown, a takeover by another organization, the loss of a major customer, or some other exogenous occurrence. The second is an internally generated desire to take the organization somewhere it has never been; a desire to build something extraordinary. The best leaders do the latter, because it is proactive and controllable, not reactive and random.”

Many people experienced the first scenario described above this year. For those of us who didn’t, these words alone provide a great reason to pick this book up and start developing an incredible organization from the inside out.

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August 21, 2009

800-CEO-READ Podcast with Jeffrey Ford, co-author of The Four Conversations

Filed under: Audio,Communication,General Management,Jack Covert Selects,Leadership — Todd Sattersten @ 12:35 pm
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I recently talked with Jeffrey Ford, co-author with Laurie Ford of The Four Conversations: Daily Communication That Gets Results.

The Fords believe that conversation can be broken down into four categories. In the podcast, we talk about each type of conversation and the right time to use them. We talk about midwestern sensibilities, amending broken agreements, and the frequency with which we use The Four Conversations.

mp3, 27:44, 19.1 MB

Other important links:

  • The Four Conversations Website
  • Book Excerpt of The Four Conversations (via Berrett-Koehler)
  • The Jack Covert Selects Review of The Four Conversations

[podcast]http://media.800ceoread.com/view/9781576759202/audio/The_Four_Conversations_Interview_with_Jeffrey_Ford.mp3[/podcast]

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It Wasn't My Fault!

Filed under: Blog,Communication,General Management — Jon @ 11:08 am
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When things go wrong, everyone wonders why, and usually many people have many different answers. In Roger Connors and Tom Smith’s new book, How Did That Happen?, the authors explore and outline a solid plan for developing better accountability. Through positive relationship building (and the process that’s involved in that), the authors define a great system not only for holding each other accountable, but creating stronger working relationships in the process.

The book is not just theory, but filled with interactive, real-life applications, with sections to write in the book, allowing the reader to engage and document situation and progress as they learn how to build better results among their team, so that the next time things go awry, everyone isn’t left asking, “how did that happen?” This is an interesting and useful book that managers and team leaders can learn a lot from.

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July 24, 2009

Monday Dots Describes Christensen's Disruptive Innovation

Filed under: 100 Best,General Management,Innovation,Strategy — Todd Sattersten @ 9:41 am
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Jeff Monday at Monday Dots has focused his latest video on the process of disruptive innovation. Jeff’s source material is Harvard Business School Professor Clay Christensen’s The Innovator’s Dilemma (a 100 Best selection) and The Innovator’s Solution.

Using his unique dots approach, the video below quickly summarizes Christensen’s theories:

At the end of the video, Jeff goes even further and suggests an improvement:

While I think this is good solution, I see it as highly reactive. I think an organization should do as Toyota did and implement a clear and hold strategy similar to what the Marines do in their counterinsurgency operations. When competition, demanding customers, and profit mazimazation drive a company to innovate up market, a company should establish an autonomous business unit to move up market much like Toyota did with the creation of Lexus. And even though they were proactive in creating Lexus, sometimes a disruption redifines the market by turning non consumers into customers, forcing an incumbent to be reactive. Ultimately Toyota had to establish Scion to compete with disruptors like Hyundai and Kia.

All of the Monday Dots videos are interesting and worth a look, and in this case, a extremely compelling way to present the original disruptive innovation concepts using a visual, viral medium.

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July 23, 2009

Bob's Slice of The 100 Best

Filed under: 100 Best,General Management,Marketing,Personal Development,Retail,Sales — Todd Sattersten @ 12:11 pm
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Bob Adams at 27 gen has written a series of posts on books he liked from The 100 Best Business Books of All Time and how they apply to church leadership. His first post is about our book and Drucker’s Effective Executive.

His other books include:

  • Purple Cow – blog post / book link
  • Six Thinking Hats – blog post / book link
  • Leading Change – blog post / book link
  • Why We Buy – blog post (with additional here , here, and here) / book link
  • Little Red Book of Selling – blog post / book link

He ends his last post by saying:

That’s my quick look at “The 100 Best Business Books of All Time.” Check it out of your local library, or pick up a copy for your own library. There’s a wealth of wisdom inside from the business world that you can make applications in your world today.

Thanks Bob!

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