Leading at Light Speed©

Ten Quantum Leaps to Build High-Performing Organizations

October 6th, 2011

What is Good Customer Service – Crucial Moments

If you're new, you may want to subscribe to my RSS feed. Thanks!


This is a story of what is good customer service – and how the small things matter. Ultimately, it’s a story about trust.

What is Good Customer Service?

I recently bought a new Nissan hybrid. As part of the deal, I turned in my previous Nissan, which I had leased. The sales manager at the dealership told me they’d take care of all the “turn in costs,” including any excess wear and tear on the vehicle (it had some minor scrapes on the fenders). We didn’t put that part of the deal into writing. It was a verbal acknowledgment. I had their word that they’d take care of it. “Good customer service,” I thought.

To my surprise, three months after I bought the new car, I got an excess wear and tear bill from Nissan on the old car totaling $250. Not a lot of money. But I wasn’t going to pay it. It was the dealer’s responsibility. We had a deal.

So I called the dealership to talk to my salesperson. Unfortunately, he had left the company. I was transferred to a man named Glen. After I explained the situation, Glen said he would handle it for me. “Thank you,” I told him, my trust meter rising. “Just fax me the invoice from Nissan,” he said. I did, and I figured that was the end of it.

A month later, I got a call from a debt collection service. “Where’s the money you owe us?” a Mr. Frezell asked. I explained the situation and said that the dealership had promised to take care of it. “You should talk to them,” I said.

“We don’t talk to anyone but you,” said Mr. Frezell in the tone of voice that only a debt collector can love. After a few attempts to get him to see the situation from my point of view, I hung up the phone.

My next call was to the dealership. How could they not have taken care of this, I asked myself? We had a deal. My trust meter was dropping. My relationship with Nissan hung in the balance.

When Glen got on the phone, I explained the latest chapter. “This debt collection service has called me and said I still owe this money.”

“I don’t get it,” Glen said. “Let me look into it and call you back.”

Less than 30 minutes later, Glen called back. “I researched this. We wrote a check to Nissan three weeks ago. The check has been endorsed and deposited. I’ll fax the check so you can see for yourself. And give me the number of Mr. Frezell and I’ll be happy to talk to him.”

Latest update: Glen called Mr. Frezell and wrote him a letter, including copies of the check showing that Nissan had deposited it. No further word from the debt collection agency.

Today, my trust meter in Nissan is at a high point. This story of what is good customer service could have gone the other way – and cost Nissan a long-term loyal customer. But because of Glen, the scales tipped toward trust. It helped me remember that every customer relationship hinges on small but crucial moments of good customer service.

Tags: ,
Posted in Customer Service, Team Building | No Comments »

March 30th, 2011

The “Hostile Media Effect” – A Lesson in Group Dynamics


David Pogue, the New York Times columnist, writes in Scientific American this month about the “hostile media effect.” This is a cognitive phenomenon where people who hold strong opinions about something perceive that media coverage of that topic is prejudiced, no matter how neutral the coverage actually is.

The same phenomenon happens in groups. People who hold strong opinions about something perceive that anyone who asks questions is biased against them, regardless of how neutral or innocent the questions are.

I saw it in action this week during a meeting of the executive team of a health care company. Ten people gathered in a large conference room overlooking San Francisco to discuss the strategic issues faced by the organization. I asked each person to reflect on these questions: “How is the health care environment changing in California? What are the most important opportunities for the company? What should be our priorities over the next year?”

For the most part, the ensuring conversation was excellent. One team member talked about the “triple transformation:” the realignment of state government, health care reform, and the emergence of community care organizations. Another said she was worried about trends in work force development and the growing need for people with expertise in integrated care. Yet another talked about the importance of marketing services to public agencies.

Then Michelle spoke. She was vice president of marketing, new to the management team. She started by saying: “In my old job, this would be called channel management.” Eyes turned to her. “In a dynamic environment, we need to look at each customer segment and provide a unique value proposition.“

A team member asked: “Can you give us some specific examples?”

“You’re missing my point,” Michelle said. “We need to think more like a business.”

“In what ways?” said the team member.

“We need to be more business-like with our customers. We assume our customers will be there tomorrow, when that’s not necessarily true.”

There was an awkward silence. I could feel the tension ratcheting up in the room. “Which customers are you referring to?” she was asked.

“All of them,” Michelle said. “It should be obvious.” She stared defiantly at her inquisitor.

After the meeting, the CEO asked for my impressions. “I thought it was a good, productive discussion,” I replied. “With one exception.”

“Are you referring to Michelle?” he asked. “That was classic. There should be a name for what she did.”

“There already is,” I replied. “It’s called the hostile media effect. She’s highly opinionated and perceives innocent questions as hostile to her.”

“Is it curable?”

“Only in cases where you can get them to eat a large piece of humble pie!”

Learn the habits of high performing organizations in my new book: http://leadingatlightspeed.com.

Tags: ,
Posted in Board Development, CEO Coaching, Change Management, Communication, Governance Development, Leadership Development, Non Profit, Performance Management, Process Improvement, Strategic Planning, Team Building | 2 Comments »

March 28th, 2011

Managing Decisions in a Light Speed World


In a world where change is accelerating, where new products and services are developed in ever-faster cycles, the quality of decisions is ultimately the most important test of leadership. Ironically, many managers and leaders are still working with Old World decision-making skills, even while their companies are trying to succeed in a Light Speed world.

A critical skill that leaders must learn in a Light Speed world is how to juggle and manage complex decision processes. As I describe in my latest book, “Leading at Light Speed,” there are five – and only five – types of decisions: autocratic, consultative, consensus, delegated, and democratic.

To be effective in a Light Speed world, more decisions have to be made “consultatively.” In a consultative decision, one person or one group ultimately makes the decision – because it’s their responsibility to do so. In a consultative decision, the leader engages people up front, clarifies that it’s her role to ultimately make the decision, and then gains people’s input. She makes it clear that she is open to different ideas – and she actively creates opportunities for people to speak up. But there’s no expectation that consensus will be reached; instead, people are encouraged to make their case, listen to other arguments, and then listen and answer questions as the leader comes to a conclusion.

There are three keys to success in a consultative decision: First, the leader needs to say up front how the decision process will go and who will make the final call. Roles and responsibilities at each step need to be mapped out. Second, there must be regular updates to remind people when they’ll have opportunities to contribute. Third, it’s key to record the ideas and feedback so that people know their views were heard.

The advantages are obvious: Instead of everyone needing to agree before a decision is made, a consultative decision can flow smoothly to a conclusion. Because people can speak their minds, unfettered by the need to agree with everyone else, unconventional thinking has a better chance to be heard.

Contrast this to a consensus decision. When using consensus, everyone must agree – a much more difficult and time-consuming process. And to what end? Some would say the end is greater “ownership” in the decision. But our experience working with hundreds of different organizations is that people actually lose trust in consensus decisions for several reasons. First, people may have stifled their feelings in order to reach agreement, resulting in a “faux” consensus. Second, people may feel that they had to water down the quality of the decision in the urge to reach consensus. Finally, when people perceive their leaders failing to take responsibility to make decisions, they lose confidence and trust. What’s the point of leadership, they ask, if the people in charge don’t actually manage and make decisions?

Last week, I worked with the executive team from a large organization to help them learn how to manage decisions more effectively. The CEO turned to me afterward and said: “I realize now why we have so many problems with decision making in our company: We aren’t clear at all about how we are going to make a decision. So people simply assume it’s going to be consensus, or assume that the team asked to develop some recommendations is going to make the final call. This has been a huge eye-opener for me!”

Tags:
Posted in Board Development, CEO Coaching, Change Management, Governance Development, Leadership Development, Non Profit, Performance Management, Process Improvement, Strategic Planning, Team Building | No Comments »

March 23rd, 2011

The Biggest Source of Workplace Stress?


An article in this week’s New York Times poses the question: What’s the biggest source of stress on the job? Hint: It’s not your paycheck, or the repetitive nature of what you do. Answer: It’s your immediate supervisor. The article, titled “Time to Review Workplace Reviews?,” focuses on a growing body of evidence that shows how supervisors can become sources of fear and dread, undermine trust, and result in a dysfunctional work place.

In my new book, “Leading at Light Speed,” I discuss the 10 quantum leaps that great leaders use to build high performing organizations. Quantum Leap #3 talks about “Leading Through Others.”  The key to success? Ongoing communication between boss and employee, clear written expectations, and emphasis on positive rather than negative feedback.

Supervisors play a huge role in determining the psychological health of their employees. In my book, I talk about building trust and “spark.” Trust grows when your supervisor keeps you informed, manages expectations, and is a reliable source of support. Spark grows when your supervisor taps your creativity, values your ideas and gives you the freedom to try new things.  Trust and spark are hard-wired into our brains, and they are the two underlying pillars of psychological health in the workplace.

One of my colleagues at LRI teaches a marvelous course for managers called “The Leader as Coach.” He provides 40 questions that managers can use to clarify where performance is good, and where it needs to improve. These 40 questions are divided into four categories: Goal questions ask what you’re trying to achieve, whether your goals are clear. Reality questions ask you to confront any obstacles to success, including those of your own making. Option questions ask you to explore possible ways forward. And Will questions ask you to think about next steps.

This system of questions is called the GROW model, a term borrowed from author John Whitmore, who wrote an excellent book on the subject: “Coaching for Performance.”

The biggest influence on your success in you job is your boss. Your boss can be a source of trust and spark. Or he can be a source of confusion and fear. My advice to managers and leaders is this: Use the GROW model to help your employees grow and keep your workplace healthy and strong.

Recommended Tools:

GROW model
Leadership Coaching
Leadership Tools
Employee Survey
Communication Survey

Tags: , ,
Posted in Leadership Development | No Comments »

September 12th, 2010

A Good Consultant Always Tells The Truth


One of the axioms of being a good consultant is this: Always tell the truth to your clients! Now this may seem like a no-brainer, but every one of us has experienced moments where we’ve wanted to refrain from telling the truth out of fear that we’ll offend. For a professional management consultant, telling the truth carries the additional fear of losing a client, with all of the financial consequences that entails.

I was reminded of this axiom while working with a large non-profit based in Los Angeles. I was hired to help the board of directors get clear on its governance role. The CEO felt the board was asserting too much control. But as I dug deeper, I found that the board had every reason to be concerned. There was no clear vision, no clear strategy, and the only action plans were on paper – no one truly owned them.

I met with the CEO and told him that my goal, above all else, was to help him and his organization be successful. I told him that, frankly, I felt the organization lacked direction. The strategic planning that the Board had done in 2007 had not resulted in a clear strategic plan. Nothing had not been captured on paper. The management team was off on its own, with no sense of coordinated action or accountability. Frankly, I told him, we needed to start at the beginning. I then looked at him, not sure what to expect.

“You’re absolutely right,” he said. “And I need you to say that to the Board – not once, but many times.”

I raised an eyebrow. After all, he was responsible for the lack of a plan, for the lack of coordination.

“You say that to the Board, and then help us develop a plan,” he said. “That will assure them that we’re on the right track.”

“I can’t do that,” I explained. “You have to carry that message. I can support you, but the Board needs to hear your commitment to making that happen.”

He paused, and then smiled. “No, you’re right again. I’ll let them know that we could have done better. And then I’d like to turn it over to you to facilitate a discussion with them. Can you do that?”

“I would be happy to,” I said. And that was the truth.

Tags:
Posted in Board Development, Change Management, Governance Development, Leadership Development, Performance Management, Process Improvement, Strategic Planning | 3 Comments »

August 11th, 2010

Helping New Managers Achieve “Flow”


In my new book, “Leading at Light Speed,” I describe in detail the 10 quantum leaps needed to build high performing companies in a time of accelerating change. The sixth quantum leap is “Stimulate Creative Flow.” I was reminded yesterday why this sixth quantum leap is so important as I facilitated a discussion about helping new supervisors and managers be successful.

Why is the concept of “flow” important?  The reason is simple. People who are in a state of flow do their jobs better.  They show a high level of focused attention and intrinsic satisfaction. As a result, they are both happier and more effective.

According to the author Mihály Csíkszentmihályi, there are three conditions that are necessary to achieve flow:

  1. People must be involved in tasks with a clear set of goals. This adds direction and structure to the task.
  2. People must have a good balance between the perceived challenges of the task at hand and their own perceived skills. People must feel confident that they are capable to do the task.
  3. The task must have clear and immediate feedback. This helps people negotiate changing demands and gives them time to adjust their performance to maintain the flow state.

Here are some specific things you can do to help new supervisors and managers achieve a state of flow:

First, give new managers and supervisors a structured way to think about the task of managing. Two of the most important tasks are managing effective meetings and clarifying roles and responsibilities. Then give them opportunities to “job shadow” highly experienced, capable managers. Let them see first-hand how to run an effective meeting, how to organize their day, how to give direction, and how to provide feedback. Let them sit in on an employee appraisal.

Second, provide them a mentor or a coach, someone who can shadow them and give them prompt, positive feedback to build their confidence. Do this as soon as they are promoted into supervisorial or managerial role.

Third, ask the same coach to work with each new supervisor and manager to create an Individual Development Plan (IDP) with 2-3 clear, actionable steps they can take to improve.

Finally, don’t put too much faith in management training. This has the least payback for professional development. The most beneficial ways to develop new managers and supervisors are 1) on-the-job experience and 2) feedback and coaching. Provide that, and you’ll help them find their “flow.”

By the way, our firm has talented coaches who can accelerate the success of new managers and supervisors. We’ll be happy to answer any question you might have.

Just send us an email at info@leadingresources.com.

Posted in Leadership Development | 3 Comments »

August 2nd, 2010

The Case of the Restless Board


I’m working with a Board of Directors that is proving most challenging! This particular Board is a chamber of commerce composed of business owners. Every meeting is a marvel of micro-management. Should our web site have a blue banner or green? Which vendor should we use to host our annual meeting? Tactical decisions like these, which should be left to staff to decide, become all-consuming conversations for this Board.

The root problem is a lack of trust between the Board and executive director. I’ve tried to create systems to build trust. I facilitated the development of a clear and comprehensive business plan. We have developed a performance scorecard. I have talked to the Board about the importance of letting things play out, to see whether the executive director and his staff are up to the task. But no sooner do I make this speech, when I turn around and witness a Board member who wants to talk about the choice of vendors at a cocktail reception!

Boards that truly want to make a difference, that want to generate lasting, sustained success in their organizations, need to stay focused on the things that Boards should do: clarifying and communicating the strategic focus of the organization. This will build trust and enable the executive director and staff to act nimbly and effectively in the face of constant change.

But members of this Board seem only interested in what’s in it for them, today. Part of it stems from the unique way that the organization is funded and structured. Each Board member represents a specific constituency that pays into a central fund that supports the organization. Board members are intrinsically motivated to make sure they get their “fair” share of the kitty.

What I’ve come to realize is that I haven’t done enough to build a collective sense of stewardship on this Board. They still see their job as steering the ship, rather than setting the course. We need to spend more time on long-range vision and specific measures of success tied to that vision.

People often ask me which of the quantum leaps described in my new book “Leading at Light Speed” is the most important. All ten are important. But I would say that aligning people around a clear strategic focus is the most important. It is the framework and the vehicle that enables a Board like this one to build trust and start moving at light speed.

Related Blogs

Posted in Board Development, Governance Development, Leadership Development, Non Profit, Team Building | 1 Comment »

May 17th, 2010

Strategic Planning on a Tight Budget


The president of the Board of Directors of a non-profit in Washington D.C. called me today and said:  “We have a limited budget for strategic planning. We have two days to develop our plan. What do you think we should be asking for from a consultant – particularly on a tight budget?”

I responded: “What do you hope to get out of it? What do you think you most need as an organization?”

He told me he’d listened to me talk about the importance of aligning a Board and staff around a set of well-understood goals, objectives and performance measures. “Bottom line,” he told me, “that’s exactly what we need. We need alignment.”

I listed for him the key elements I thought he should ask a consultant to provide.

1. Facilitate clear agreement among the Board on the vision of the organization.  How do you want to change the world? What impact do you want to have? Do you want to enact a new piece of legislation? Do you want to build 250 new chapters? How would you measure success? Internally, do you want to build membership to a certain level? Do you want to increase fee for service revenues a certain amount? Get the Board to agree on what success looks like.

2. Design your road map. What strategies will be the most effective in achieving those goals? What are the most important objectives and actions tied to each goal? Your consultant should help you write them down in a clear, easy-to-use format. Your consultant should also keep you focused the Board’s role vs. the staff’s role. What will the Board do? What will staff do?

3. Define your measuring system. The Board should be clearly aligned around how it’s going to monitor progress. Document each goal and exactly what information the Board will receive so that it can monitor progress. Remember, the Board doesn’t need to be in the business of micro-managing. It should be in the habit of looking for results. This measuring system is the part that most consultants overlook. It’s also the most important to assure alignment.

4. Put it together. All this work needs to flow together into a clear, easily understood document. Before you hire a consultant, ask for examples of other strategic plans he or she has helped put together. Look for a plan with all these elements. It’s tempting to make compromises when you’re on a tight budget, but good consultants are out there. Keep looking until you find the right one!

Related Blogs

Posted in Leadership Development | 1 Comment »

May 17th, 2010

Crisis Management Reflections on the Gulf Oil Spill


Watching executives from British Petroleum, Transocean and Halliburton testify before Congress about the Gulf oil spill on Tuesday reminded me of the cardinal rules of leading through a crisis. Unfortunately, it looks like the BP-TO-HB trio never got the memo.

There are two rules to follow in a crisis. Rule number one is this: Protect other people first – customers, employees and citizens. Not your shareholders or yourself. Protect the public and your customers, and the shareholders will follow. Why? Because the long-term reputation and goodwill of your organization are more important than any short-term risk to shareholder value or your own job security.

Rule number two is a corollary to the first: Be prepared to reframe and expand your level of responsibility. In other words, accept responsibility even if you’re not at fault. This may feel counter-intuitive, especially when someone else is clearly culpable. But reframing and expanding your level of responsibility will help lead you out of the crisis.

Consider the Exxon Valdez disaster. When it went aground in Alaska’s Prince William Sound in 1989, eleven million of oils spilled onto pristine shoreline. In the immediate aftermath, Exxon’s CEO Lawrence Rawl was slow to accept responsibility. Instead he issued a flurry of press releases stating that the company was investigating the accident. The opportunity to quickly contain the spill was squandered. Hundreds of miles of coastline were fouled.

Public furor built and the company’s reputation plunged. Several weeks passed before Rawl grudgingly announced that the company would take responsibility for the clean up. Eventually, thousands of workers and volunteers were mobilized to mop up the oil, save the wildlife, and minimize the damage to the extent possible. But Exxon’s public image was left in tatters because its immediate response was too slow. William Reilly, then head of the Environmental Protection Agency, said Rawl’s response was “a casebook example of how not to communicate to the public when your company messes up.” Rawl’s reputation never recovered.

In contrast, when a container of Odwalla apple juice contaminated by the bacteria e coli resulted in the death of a child in 1996, CEO Greg Stepensall stepped in right away and assumed personal responsibility. He recalled every Odwalla product. He paid out huge sums to the families affected by the tainted products. He held regular press conferences to ensure the public knew what was going on and how the company was responding. For more than a year, Odwalla retooled its production lines, adding flash pasteurization to ensure no future incidents could occur. Sales fell 90 percent but Odwalla survived with its reputation intact.

As the Exxon Valdez and Odwalla examples show, leaders have a clear choice in how they frame their response to a crisis. On the one hand, they can respond out of a “protect ourselves” mentality. Or leaders can think and act out of a larger ethical context, as Odwalla did.

The Tylenol scare in 1986 is another case in point. It was clear when cyanide-laced containers of Tylenol were found on supermarket shelves that a pathological killer was responsible. Johnson & Johnson’s executives could have focused on the criminal aspects and exhorted police to take responsibility for catching the perpetrator. (Indeed, he was caught within a matter of days.)

But Johnson & Johnson’s executives understood the need to immediately take responsibility for the safety of their consumers. This led the company to recall every Tylenol product, design strong anti-tampering packaging, and conduct a massive awareness-building campaign. It is estimated to have cost the company $2 billion, but Johnson & Johnson emerged the stronger for it.

The bottom line is this: When a crisis hits, two dynamics take over: Trust and Empathy. These dynamics are illustrated in the figure below.

The Trust/Empathy Matrix

trustempathymatrix

The empathy scale is governed largely by facts outside your control. In the case of the Exxon Valdez tanker spill, there was little question that the captain was drunk and that Exxon, as his employer, was at fault. Exxon’s leaders had little control over the empathy scale. But they did have control over the trust scale, which they messed up. In the Tylenol case, Johnson & Johnson was clearly not at fault. Yet it chose to assume full responsibility. As a consequence, the company was rewarded.

In Japanese corporate cultures, managers are trained to accept personal responsibility for anything that goes wrong on their watch. To Western eyes, this seems odd. We’re amazed when a Japanese CEO resigns because of the incorrect action of a freighter captain or an accounting irregularity. Yet as the Trust/Empathy Matrix shows, it’s also smart business. When a crisis hits, assuming responsibility and taking immediate, corrective action is more important than safeguarding your job.

Too bad the folks at British Petroleum, Transocean and Halliburton haven’t learned that lesson.

Tags: ,
Posted in Board Development, Governance Development, Leadership Development | No Comments »

March 22nd, 2010

Lessons for a Board President


governance development

In passing the leadership torch at a non-profit organization, I was asked to name the things that effective Board presidents do. Here’s my list:

1. Facilitate and preside over the Board meetings, starting on time, ending on time, keeping the conversation on topic, calling on people who are quiet, trying to engage everyone.

2. Model the behaviors you want to see in others during Board meetings. Be present and attentive. Listen carefully, paraphrase people’s positions, and clarify the action steps. Provide positive feedback.

3. Be clear about the role of the Board. The Board needs to make decisions that are appropriate for the Board: i.e. adopt a strategic plan, approve a budget, and decide on other important matters. Treat those matters with the seriousness they deserve. Don’t let the Board slip into bureaucratic behaviors (for example, by appointing committees to oversee staff’s work).

4. Be direct and straightforward about any conflicts you see or issues before they become elephants in the room.

5. Keep a focus on the organization as a business. Keep focused on generating market-driven revenues, in addition to philanthropic fund-raising. Keep asking “who pays, who benefits” types of questions. Challenge people when they drift into non-business-like thinking.

6. Be actively engaged in planning the Board’s agendas. Feel free to elevate things that you think the Board needs more time with. Don’t rubber stamp staff’s suggested agendas.

7. Be available to the chief executive and staff as a sounding board. Spend time with them separately, talking through matters of importance and thinking through how best to optimize the expertise and talents of Board members. Help them understand the role of the Board.

8. Think about the legacy you want to leave as Board president. Pick one or two goals, such as diversifying the Board or elevating its fund-raising capabilities, and commit yourself publicly to achieving them.

9. Be thoughtful about who you want to succeed you. A Board president has a lot of sway over his or her successor.

Leadership Tools

When a Board of Directors serves in a governing capacity (e.g. for a non-profit, a public agency, or a corporation), the Board needs to act in certain ways in order to assure high levels of performance throughout the organization. This tool lays out the five habits of high-performing governing boards.

The Board of a non-profit organization typically follows an evolutionary path as the organization matures. This tool lays out three stages of Board evolution and identifies the characteristic behaviors of each stage. This tool can apply to public agencies, city councils, non-profits, and co-ops. Board members can use this tool to help clarify their role and adapt the Board’s focus accordingly.


Related Blogs

Tags: , ,
Posted in CEO Coaching, Governance Development, Leadership Development | 3 Comments »

« Older Entries