I used to think running a company must be hard
work. Now I know it is. Last month I was drafted into the reluctant
role of temporary skipper, pending a search for a new chief executive.
It wasn't what I'd call fun, but I learned a few things.
Several months before, we had combined two fine companieseach
a leader in a part of the marketto create a dominant competitor.
But after decades of fighting each other for every piece of business,
the two teams were not what I would call brotherly.
We formed an operating group of the two dozen top managers and assembled
them in a room. I announced that from now on we would stop blaming the
other team for problems and sink or swim together. Henceforth it was
an offense to use the names of the former companies except in the past
tense. The penalty was one American dollar to be paid immediately in
cash.
We decided the best way to get the message around was to use Shawn-mail.
Shawn, the company's receptionist, is also the company's de facto communications
officer. You want the employees to know something, you don't write a
memo. Just tell Shawn. We gave all the money collected through our drumhead
justice system to Shawn, who would use it to buy pretzels, popcorn,
pizzas and other treats for the employees.
So far it's working great. It's a fun way of making a serious point.
Even after three weeks we still collect from $5 to $10 in a two-hour
meeting. One of the employees collected a buck from the company's banker.
But the crime rate is going down, and the two teams are slowly becoming
one team.
Another problem we had was getting people to speak up. The previous
chief executive had been extremely autocratic; ideas came from the top.
I wanted to change that.
The people who really know how the customer feels are the service reps
who take the customers' calls. The people who know about shipping are
the forklift drivers and shipping employees who see the product go out
the door. And the people who know about capital equipment are the guys
in the maintenance department. I wanted to get the knowledge of these
people into the decisions we were making to improve our service to customers.
We started with a marathon meeting of the operating group to identify
every problem that was affecting our ability to serve our customers
or take care of our own employees. If the customers like doing business
with us and the employees think it's fun to come to work, everything
else will work out.
We ended up with 30 projects, ranked in order of importance to the
customer. For each project we appointed a belly-button person from the
group to report progress. We then appointed a team of employees from
every area of the business touched by the issue to find a solution.
The pricing team, for example, might have employees from sales, customer
service, accounting and credit on the team. We meet every Thursday,
when everyone gets a chance to speak his or her mind. Once we decide
on a course of action, we all work together to make it succeed.
To reinforce the message that employees' ideas do improve the business,
I gave all the members of the operating group copies of I-Power, Marty
Edelston's fabulous book. It shows how to create an organization that
draws the best ideas from its own people. Marty's premise is simple:
The collected brains of all the people in the companya kind of
human neural networkare a lot smarter than any one brain. This
book helps the employees realize that the boss really means it when
he says he wants our ideas.
Ordinary employees began showing up, asking if they could borrow a
copy. I am on my third case of books already.
I hated having to step in as temporary chief executive, but I'm richer
for the experience. I love seeing the people walking taller, stepping
faster and feeling proud of themselves. We have seen remarkable examples
of leadership, as employees find and implement solutions to small problemsand
big ones. We're not where we want to be yet, but customers are starting
to call to say they like what they see.
The biggest lesson all this taught me is that the guys who operate
a business have tougher jobs than the chairman of the board.
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