Category Archives: Strategy

How Do You Handle Underperforming Employees? Four Points

Situation: A CEO has several employees who report to a single manager but who are not performing to expectations. The manager is seeking the CEO’s assistance. When faced with a similar issue in the past, the CEO has turned up the pressure on an individual until he or she decided to leave on their own. Is this the best option? How can she resolve this situation and, at the same time, improve company morale? How do you handle underperforming employees?

Advice from the CEOs:

  • Letting underperformers go sends a positive message to the rest of the team. It reinforces the message that a high level of performance is expected, and that a low performer won’t be allowed to penalize the overall performance of a team.
  • There is a serious downside to just turning up pressure until an individual leaves.
    • Even low performers usually have friends among the staff.
    • Turning up the pressure on an individual without telling them why creates an impression of unfairness. “Why is Joe being asked to do all of this – particularly when it doesn’t look like he can handle the work?”
    • The most serious downside is that a high performer becomes fearful that the company may have the same “unfair” expectations of him.
  • It is healthier to sit down with an underperformer and face the problem. This also reduces exposure to charges of discrimination.
    • Plan a meeting with the manager and each of the under-performing employees. In each meeting, tell the individual that specific areas of their performance are not up to company standards. Provide objective, measurable examples. Listen to the individual’s reaction.
    • Work with the manager to develop a program with each individual to assess whether they are willing to improve their performance over a specified time frame. Inform them that there will be a decision as to whether they will remain on the team at the end of the time period. Again, listen to their reaction.
    • If an individual does not respond positively and improve performance, it will be necessary to fire them. However, they have received fair warning and a fair chance to demonstrate that they can produce the expected performance.
    • If an individual isn’t interested in performing to company standards, the assessment period gives them time to look for another job.
  • Because these individuals report to their manager, coach the manager on the process outlined above and have her oversee the outcome. Help the manager to make a call after a period as determined with the manager.
    • Continue to coach and support her during this process.
    • Make it clear to the manager’s team that she is in charge of this process.

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How Do You Maintain a Culture Focused on Quality? Five Points

Situation: Quality is a CEO’s #1 objective for his company. As the company has grown and processes have become more complex with more people involved, consistent quality is becoming an issue. The CEO wants to refocus and reestablish a quality culture to support future growth. What have others done to increase the quality of their product or service? How do you maintain a culture focused on quality?

Advice from the CEOs:

  • Trust is a company’s most important commodity. This trumps financial exposure. In case described, the client trusts the company to produce and deliver a quality service upon which they can rely.
  • Go all of the way back into system design – or how any particular product system is set up.
    • Assemble a diverse group to review both the company’s deliverables and the system inputs.
    • Brainstorm everything that can break.
    • Prioritize the list based on potential exposure to the company.
    • Do a deep-dive analysis of the top 5 or 10 exposure areas.
    • Reprioritize after the deep dive has been completed.
    • Fix all issues identified in order of exposure.
    • Repeat the exercise periodically to assure that quality is maintained.
  • Empower and reward anyone who develops improvements in quality control.
  • Shield the company from any exposure over which it has no control. This can be accomplished through language in the company’s service agreements, and through language covering service deliverables.
  • Once the company has shielded itself from an exposure, set up flags in the monitoring systems that will alert the company of events or situations that will impact clients. This allows the company to inform clients of situations that may impact them without making recommendations as to how the client should handle the situation.

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How Do You Build a New Channel? Four Cases

Situation: A company wants to increase business by building a new channel. The new business is different from the company’s base business, but won’t change the company’s focus on its base business. What lessons have been learned by other CEOs who have accomplished this? How do you build a new channel?

Advice from the CEOs:

  • One company created a new channel without changing the base business.
    • They responded slowly to the opportunity before deciding to change.
    • They needed to change infrastructure by adding more people.
    • They also needed to redefine the offering to meet the needs of new clients.
    • This involved adding additional data which had been accessible previously but hadn’t been presented.
    • At first the hand off wasn’t smooth. Hiccups that could have been foreseen with more planning were extra data fields and rough hand-offs. Future new releases will focus on improved process review and more challenging of assumptions, and more patience in the scoping stage.
  • The second company created a new branch with different products and operations, but maintained one financial and inventory management system.
    • The initial produce was sold and installed, utilizing union labor. The new product is sold wholesale business to businesses and is non-union.
    • After struggling with attempts to house both operations under one roof the new operation was moved to a separate location.
    • This enabled company to set up separate operations and to fully understand the financials of both operations. It also makes it easier to assess the viability of each business and to implement changes in one without disrupting the other.
  • The third company created a new offering to sell to the same customer base, with no change in the back-end systems.
    • The new business created an insurance model for the company’s services as an alternative to the original break-fix model.
    • The two systems use a common sales team, network engineers, and back-end system. Customers choose either insurance or break-fix.
    • The challenge was that the two models need completely different monitoring and incentive systems for the engineers. This took time for development and training.
  • The fourth company created two production operations: turnkey and component.
    • This called for different sales and contracting processes and separate production areas on the plant floor, with clear delineation but using the same back end, financial, and engineering support systems.
    • The component process is short-run, high value, high margin; the turnkey is high volume runs, lower value, low margin.
    • The challenge has been in setting up a new set of contract agreements and monitoring systems to monitor the financial success of the turnkey operation.
  • What is the common thread?
    • Put sufficient time into planning and evaluating options and challenges so that there is a solid understanding of the new channel before starting.

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How Do You Encourage Others to Take the Initiative? Five Points

Situation: A CEO has a challenge getting employees to take initiative in areas that she wants to delegate. Part of the challenge is that she needs to “let go” and tends to do too much checking in. She is concerned that this results in employees’ hesitation to demonstrate the initiative that she desires. How do you encourage others to take the initiative?

Advice from the CEOs:

  • Continual checking-in alters the “urgency.” It feels more like a lack of confidence in the individual’s ability to complete the task to specifications and on schedule.
  • Work to establish more trust. Do this incrementally – start with less urgent / important responsibilities or tasks and move toward more urgent / important ones.
  • Determine boundaries and clearly establish deliverables.
    • Write the objective down ahead of time – as well as how much information to give them.
    • Ask yourself: Is this providing “just enough” information to guide them without micromanaging or over specifying the solution?
  • Is an objective being set, or are you trying to teach a methodology to reach the objective?
    • Unless the methodology is critical, focus on the objective and let them determine the methodology.
    • Once the objective is completed review and learn from them how it worked. Ask how they prefer to complete the objective so that you can provide the appropriate level of guidance in the future.
  • Delegating takes more time than doing it yourself.
    • Employees will complete a task differently than you will. As long as an acceptable result is achieved, be tolerant that the method or tone is different. They may be coming up with a better way!

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How Do You Improve Communication with Your Team? Six Thoughts

Situation: A CEO is concerned that communications with her team regarding tasks, goals and operational objectives are insufficiently clear. Members of her team sometimes express confusion with her directions and what has been assigned to them. What have others done to better communicate with their teams? How do you improve communication with your team?

Advice from the CEOs:

  • Write down what you plan to say and how you will say it before meeting with member(s) of the team. Once direction has been given, ask them to restate the directions or instructions. Ask whether these were clear and whether more detail is needed.
  • Assume that it will take team members 3-4 times the time that it may take you to do the same thing. This will improve over time as they approach your level of skill performing specific tasks.
  • Heartily congratulate achievement – be a cheerleader!
  • If the individual brings up other thoughts that are off point to the planned or immediate objective thank them for the input. Respond – let’s note this separately for the time being and come back to it later once when we address the immediate challenge.
  • Set deadlines for accomplishing objectives and ask where there will be conflicts. Negotiate mutually acceptable adjustments if these are necessary.
  • Communicate the bigger picture. Help them to understand how the assigned task or objective will further company objectives and improve or augment operations or functions. Share the larger vision and their role in achieving it.

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How Do You Transition and Mix Leadership Styles? Five Points

Situation: A CEO has shepherded his company from a start-up to a viable enterprise. Early on, his management style was based on facilitation and his “likeability”. This worked well with a tight-knit team. Now the company is much bigger and he feels a need to be respected and able to act as a dominant leader when this is required rather than as a facilitative leader. How do you transition and mix leadership styles?

Advice from the CEOs:

  • What does a dominant mode of leadership entail?
    • Defining the starting point, desired end and important characteristics of the solution – then ask for input on getting there.
    • One can mix dominant behavioral modes with facilitative modes – the difference will be the focus on the end to be achieved.
  • If one were moving the opposite direction – from dominant to facilitator – one would:
    • De-entrench oneself from one’s own position.
    • Become more open to others’ ideas.
    • Change tone / words to express openness.
  • Conversely, to move from facilitative to dominant:
    • Decide what one wants to achieve and express it clearly.
    • One can remain open to the ideas of others, but make sure that the exchange is staying on topic and moving toward the desired objective.
    • Change tone / words to become more assertive.
  • How does one plan ahead to determine what one wants?
    • Review notes / priorities ahead of meetings – decide on the agenda and the objectives for the meeting.
    • Write reminder notes to ask questions or push issues that will drive the agenda.
  • Focus on the framing of the discussion – when one is being dominant the framing is more structured and determinant; when one is being facilitative the framing is more flexible and undetermined.

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How Do You Delegate on a Team Basis? Four Options

Situation: A CEO wants to develop a collection of skills within her team as an alternative to just having individuals with skills. For example, her role means that she must travel frequently, often for over a week at a time. How can she develop a system to temporarily reallocate the time of the team to cover her responsibilities while she’s away. How do you delegate on a team basis?

Advice from the CEOs:

  • If the team functions on a high level, this is not really a problem. They will step up.
    • Plan for the time frame during which the CEO will be away.
    • List all responsibilities to be covered and set priorities for response. Focus on the highest priorities first. Delegate them or use them as cross-training opportunities for team members.
    • Meet with team ahead of time. Go over what has to be covered. Ask who can cover this, and delegate first, second and third responders – not just a single individual. This is important so that they know that they are backed up as well. Ask: What concerns or questions do you have? Have the team develop solutions.
    • Where processes are involved, break down the process. Create a decision tree and work with the team on how to make decisions with resources available.
    • Set priorities for the time away before leaving. Ask the team how they would handle situations and coach them if they are not sure. Identify resources for them to use if needed.
  • Use the model that a special forces team uses to train and prepare for missions:
    • Know each other’s strengths and weaknesses.
    • Know how to back each other up.
    • Set up situations that are likely to arise and rehearse.
  • Another good model is engineering decision trees.
    • Create decision trees for how frequently occurring situations are handled to help team members determine the proper course of action and how to utilize which resources to respond to these situations.
  • Note the difference between reactive and proactive responsibilities.
    • Train the team to respond to reactive situations.
    • Schedule proactive responsibilities around planned time away to facilitate involvement in these as necessary.
    • Flexibility is critical.

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How Do You Manage a Remote Team? Three Suggestions

Situation: A company just acquired a remote office, including a team that has worked together for years. The manager has 20 years of experience. During the early weeks working with this office, some challenges have developed, specifically resistance to the new reporting relationship. Meeting schedules have been adjusted to accommodate the manager. The principal concern is buy-in from manager’s reports. How do you manage a remote team?

Advice from the CEOs:

  • From the discussion, the remote manager has been getting disparate and sometimes conflicting direction from several different people at the home office.
    • Meet with home office team. Develop a consistent set of expectations and priorities so that the Manager is not struggling with different directions from different people.
    • Consider that in the coming months there will be two business phases:
      • Phase A: Business and client transition to the new ownership.
      • Phase B: Client maintenance and business expansion.
    • Different strategies and objectives will be needed to address each stage.
    • Ask for input from the home team on how best to achieve these strategies and objectives.
  • Have a discussion with the remote office manager.
    • Explain Phases A and B and the focus of each phase.
    • Expectations will be flexible during Phase A as business is transitioned.
    • In Phase B the focus will be on Team procedures and development.
    • Listen to the remote office manager for her thoughts and suggestions on the strategy for each stage and how her team will best meet expectations.
  • Similar advice applies to working with remote managers and employees, a situation that has become more common following the COVID Pandemic. Listen to their input and ask for suggestions as how to best achieve their objectives.

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How Do You Define Roles and Responsibilities? Three Options

Situation: A small company is understaffed and finds it difficult to hire in the current environment. Employees struggle to meet both past and new responsibilities. There simply aren’t enough hours in the day to meet objectives. How do you clarify objectives so that the team can meet them? How do you define roles and responsibilities?

Advice from the CEOs:

  • Start by working with employees to create a list of current responsibilities for each employee, along with the estimated time required to fulfill each responsibility.
    • Within this list, classify each responsibility as “Must Do,” “Second Priority,” or “When we have time.”
    • Look at the hours in the day or week. Assess what is possible to do in the hours available, and what is not.
    • Discuss this with the team and ask whether they agree with both the assessment and priority list.
    • Discuss trade-offs and the availability of any resources with the company that may be currently underutilized.
  • Reassess the expectations of clients to determine whether everything that is being done must be done in the timeframe currently promised. This helps to define what is truly urgent and what is not.
  • Another way of stating the process is to:
    • Prioritize and delegate what can be done, or reallocate what can’t be done with current resources.
    • Look for ways to work smarter to get more done in the time and with available resources.
    • If lower priority items still can’t get completed in the available time either drop them or discuss options for accessing additional resources to complete them.

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What are the Consequences of Not Meeting Goals? Four Points

Situation: A company recently established a weekly objectives program. Weekly objectives are set on Monday, with reminders to complete objectives for the week sent by email on Thursday. However, some team members are failing to meet goals for the previous week and want to roll over previous week’s unmet objectives to the new week. Should there be consequences for failing to meet stated objectives? If so, what is the best method to phase these in? What are the consequences of not meeting goals?

Advice from the CEOs:

  • Track which objectives are being met and which are not. Measure the impact of not meeting objectives on original timelines. Assess the depth of the problem.
  • Watch the process for four weeks. At the weekly meeting following the end of the four weeks, discuss the process as a team.
    • What’s working and what is not?
    • Are realistic objectives being set?
    • If objectives are not being met, is there something that regularly interferes with objective completion?
    • Are monthly or quarterly objectives at risk as a result?
    • Reset and reestablish expectations for the following four weeks as a team. Raise the bar for compliance, as a team, as you mature the process.
  • If any team member shows signs of chronic difficulty meeting weekly objectives, meet 1-on-1 to assess the situation and reset expectations.
  • Discussion builds team support of the process and adds a layer of peer-pressure to prompt individuals to improve their consistency in meeting weekly objectives.

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