Situation: The CEO is moving a key employee from head of engineering to a more customer development focus. To support this, she will have to bring in or promote another employee to fill the position of leader/supervisor/manager of the engineering group. The CEO seeks advice on the best way to approach finding a replacement for this key job. How do you replace a key position?
Advice from the CEOs:
• First, it is necessary to develop a timeline for finding and transitioning the replacement. Realistically, count on 6 months to find a replacement and transition the responsibilities to a new person.
• Keep in mind that anybody you find or promote will be different from the individual who currently occupies the position, and will not handle their new responsibilities the same way as the current individual. Their motivation and their approach to their new responsibilities will be different, at least at the outset, and they will not handle their responsibilities the same way that the current individual does.
• Seek an individual, either currently within the company or an outside hire with strengths that, over time, will add significant value to the organization. Prepare for this by brainstorming and developing a profile of the ideal candidate.
• If you have qualified candidates, the ideal person will come from within the organization. This has the added advantage of demonstrating to other employees that they, also, may become candidates for future positions to grow both their skills and income.
Tag Archives: Employee
What are the Trade-offs of Becoming a Company Principal? Four Points
Situation: A senior employee is on a good growth track within her company. The CEO has stated that he believes that she has the potential to become a principal of the company in the future. What are the tradeoffs of becoming a company principal?
Advice from the CEOs:
• Becoming a principal involves both greater potential rewards than being an employee and greater potential risks. Create a chart with two columns. In one, list the potential rewards of having a stake in the company. In the other list the costs and potential liabilities. This will help to weigh the rewards against the liabilities.
• Areas to negotiate include voting rights, granting of options, understanding the perks of becoming a partner, and also the possibility of legal liability for any malfeasance that the company may commit.
• If you see liabilities that concern you talk to an attorney – your own, not the company’s – about how to address these liabilities in the terms of an employment contract as a principal.
• Evaluate the potential long term value of the ownership share being offered. Does the company have a buy-back policy for a principal’s ownership share and, if so, what are the terms?
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How Do You Forge an Effective Relationship with a Buyer? Five Points
Situation: A CEO’s Company was recently acquired. She is getting little, if any, guidance from the acquiring company in terms of leadership or management of her former company. What does the group recommend that she do? How do you forge an effective relationship with a buyer?
Advice from the CEOs:
• You’re Lucky: We all wish we had that problem. Many buyers interfere with the operations of the acquired company and make the transition very difficult. This leads to all sorts of problems including employee departures.
• Employee Feedback: Hold an employee meeting, gather their thoughts and concerns, forward those to senior management. This demonstrates a willingness to work with the buyer to forge the best relationship possible.
• Memo: Draft a memo with all of your thoughts, options, and recommendations, send it to the management of the acquiring company and you have satisfied your moral responsibility. No guilt.
• Consult: You may end up consulting to new management sent to you by the buyer to help them figure out how to evolve from practitioners/managers to full-time managers.
• Don’t Worry: The purchase was a good deal to you because you were able to negotiate a favorable deal for yourself and your managers. The future is more a concern for the purchaser than it is for you.
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How Do You Correct Inappropriate Behavior of a Productive Employee? Four Points
Situation: A CEO has a key manager who frequently uses inappropriate language and demonstrates lack of care towards co-workers. This individual is smart, has great drive, and does the work formerly handled by two employees. How do you correct inappropriate behavior of a productive employee?
Advice from the CEOs:
- Create a firm company policy on swearing and the use of inappropriate or abusive language.
- Each time any individual swears or uses inappropriate language, they must put $1 into a pot. Anybody can call anyone else for swearing and the one who’s caught has to pay. The money in the pot goes to buy pizza on Fridays.
- This is a creative and even entertaining solution and should resolve the problem in a short time.
- Sit down with this individual and go over their positives and value. Besides these, emphasize which behaviors are unacceptable.
- Explain the legal implications and consequences for the individual and company. Provide goals and set objectives.
- Send this individual alone or with a team to a Pryor Customer Relationship seminar, for example the seminar “How to Communicate with Tact and Professionalism”.
- Let the instructor know in advance that you want to be sure that certain behaviors are covered during the seminar.
- This may provide the individual the incentive to behave like an owner of the business.
- Make it clear who’s in charge, and at whose discretion the individual remains with the company.
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How Do You Improve Morale and Performance in a Professional Services Company? Four Observations
Situation: The CEO of a professional service company says that his employees have been through a lot of stress over the last few years. He wants to improve company morale to boost performance and is interested in how others have done this. How do you improve morale and performance in a professional services company?
Advice from the CEOs:
- Manage Morale and Employee Feedback – In times of economic change and adjustment, it is important to have a good handle on what employees are thinking about their jobs and the company as a whole. The use of anonymous surveys administered via computer or a neutral 3rd party generally yields more objective and honest feedback than 1-on-1s with the CEO. They offer employees an opportunity to anonymously share their concerns, and to offer constructive feedback on how to boost company performance.
- NOW is the time to act – whether the economy is positioned for a rebound or another dip. Employees have dealt with a lot over the last few years and may be starting to look at opportunities outside the company. Therefore, it is important, right now, to put programs in place to:
- Retain high performing employees, and
- Communicate to employees what the company is doing to position itself for growth so that they see a bright future for both the company and themselves as employees within the company.
- Professional services are people-to-people businesses. Focus on relationship building to increase market presence. Recognize and reward employees for their efforts to build new relationships with clients. Use these as examples to inspire other employees.
- Many more women have entered and become an important component of the workforce. Conduct group meetings to compare the experiences of male and female sales people in relationship selling situations. These will differ between purchase decision makers in different markets and situations where one gender vs. the other predominates. Sharing experiences offers the potential to learn from and to support each other as well as to improve performance. Ask employees how these meetings should be conducted and whether they prefer same or mixed gender meetings.
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How Do You Navigate Communication Style Differences? Four Points
Situation: A CEO seeks advice on how other CEOs work with employees who have significantly different styles of communication. He suspects that this is a source of conflict between employees and wants to reduce that conflict. How do you encourage employees to be more open and receptive to other employees? How do you navigate communication style differences?
Advice from the CEOs:
- Conduct regular personnel reviews. In reviews work with the individual to develop personal growth plans in addition to professional development objectives.
- It may be necessary to create enough stress in an interview situation to prompt the real personality to show.
- Recognize that sometimes an employee who meets professional goals can still be a poor fit for the team. This can impact other, productive team members. Don’t be afraid to fire a bad hire.
- How much can you expect to mold another person’s communication style?
- There must be personal motivation to change – the impetus must come from within.
- To prompt the conversation acknowledge that something isn’t working – or isn’t as effective as expected.
- Communicate to the individual that the consequences of not changing are potentially worse than the effort to change.
- Breed adaptive communication skills throughout the organization.
- Use an assessment tool to start the conversation and align tasks.
- In dealing with an individual who is confrontational, probe to determine what is motivating the individual’s question or position on an issue. Does the individual genuinely need additional information or are they using a wall of questions as a roadblock to moving on?
- Work with the individual to organize their answers or input into a plan.
- Communicate values and goals as they pertain to individual contribution and appreciate the impact of different departments’ actions on each other.
- Be flexible – some people need more definition and reinforcement than others.
- Understand that changes and transitions in the company’s focus can shift roles.
- Review each individual’s role periodically to insure that it fits the company vision. This can increase the individual’s understanding of how they are contributing to moving the company forward.
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How Do You Foster Productive Communication Within Your Company? Six Suggestions
Situation: A CEO is concerned that communication between employees is often non-productive. Individuals can be abrasive in their comments. This leads to loss of productivity because the individual criticized feels hurt and distracted. It also results in the formation of “subgroups” which conflict with each other. How do you foster productive communication within your company?
Advice from the CEOs:
- Encourage tolerance of and sensitivity toward individual styles.
- Identify the particular style of each individual. Assessment tools are helpful.
- Admit that different individuals have different styles and that this is OK. Have a conversation with them so they are aware of this.
- Always allow an individual one “charm” that is uniquely theirs.
- Identify the motivations that drive each individual within the company.
- Communicate with each individual in a way that recognizes and aligns with their motivation.
- Focus on constructive communication aimed at helping the individual to strengthen performance. Build a foundation of fact to reduce the risk that what is said will be taken personally or interpreted as critical. Become the model for how others can effectively communicate with each other.
- Meet others half-way.
- Outline, test and agree on basic assumptions to get the conversation rolling.
- Weigh the pros and cons of each suggested alternative.
- Use employee reviews and compensation decisions as motivators.
- Explain the company’s marketplace and plans vs. market practices. Get the facts. Know what each job typically pays and market balances between salary and incentive compensation.
- Align the rewards offered with each individual employee’s motivations.
- If an employee is not a 5 (on a scale of 1 – 5), explain what they need to do to become a 5.
- Keep the annual retreat alive when everyone returns to the office.
- Generate follow-up plans as part of the retreat. Include measurable objectives, responsibilities, accountabilities and timelines.
- Identify solutions, not just problems.
- When asking for recommendations, acknowledge each suggestion. Be prepared to implement what is suggested – in whole or as part of a larger strategy.
- Recognize that the environment is in constant flux and that the company must continually adjust to adapt to changes.
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How Do You Generate Buy-in as You Change the Business Model? Six Points
Situation: A company is changing its business model from fee for service, driven by individual contributors, to a contracted project model with teams delivering service. The driver for the new model is to deliver full solutions to meet client needs. The CEO is struggling to obtain buy-in to the new model from all stakeholders – employees, managers and shareholders. How do you generate buy-in as you change the business model?
Advice from the CEOs:
- The objective is to obtain agreement on vision and direction as the company adapts over a 3-5 year horizon.
- Benefits include: product vs. service sales, a growing annuity revenue base, increased stability for the company and improved career paths for all members of the team.
- Risks include: massive change, fear accompanying any change, too rapid growth, and the changes to company culture that will accompany this
- Acknowledge and celebrate what the company and team have done well and the success that this has generated. In addition, share the lessons learned from experience to date, as well as the new opportunities that these lessons have created and the reasons to change to take advantage of these opportunities.
- Create an exciting vision that expresses the new opportunities. Consider an off-site “WOW” event to announce your vision.
- Focus on what’s in it for them as stakeholders. Address how they can participate in the change.
- Where are the opportunities? Do they include investment and ownership?
- Focus on the next major steps and the doable objectives associated with each step.
- The new direction will require a different type of manager – with skills and experience managing teams. This is a growth opportunity for all involved. Provide training to assist the transition.
- Employee and manager skill sets (including the CEO’s) will need to adapt – identify what skills will be needed and how they can be found or developed.
- The past culture has been highly entrepreneurial with little middle management. The new model may be different from the current model, but it can still be entrepreneurial in a different way.
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How Do You Improve Communication and People Management Skills? Three Points
Situation: As his company grows and adds new employees, a CEO wants to improve his skills working with employees as well as managing time when employees come to him with suggestions or issues. Occasionally there is confusion between what is said and how his directions are interpreted. How do you improve communication and people management skills?
Advice from the CEOs:
- How can one improve conversational skills when meeting others, breaking the ice and establishing a conversational relationship?
- The easiest way is to ask benign questions. How was your weekend? How are you doing? Actively listen to what they say.
- Remember their responses. Probe more deeply to prompt them to go into more detail. Show an interest in them. Most people love to talk about themselves and their experiences.
- If they in return ask about you, give them a pleasant but brief response, and return with a question about them. This is like a tennis volley – keep on returning the ball.
- The important point is to show an interest in others, and to improve the ability to recall what they have shared. Don’t cross personal boundary lines of what is “too personal.” Others will appreciate this attention and will warm to you.
- If the concern is confirming understanding, start by repeating what you hear and confirm your understanding before responding.
- Some individuals come into the office, plant themselves in a seat and just chat to waste time.
- When one of these individuals comes into your office, stand to greet them with a smile and a friendly question of how you can help them. Do not sit down. Remain standing as long as they are in your office. This will naturally shorten the conversation and prevents them from “settling in.”
- When you stand up, smile and greet them with a friendly question you are not putting them off. In fact, you are giving them more attention than they have received in the past. As a result, while preventing them from settling in, this is being done in a way that shows them respect.
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How Do You Maintain the Chain of Command? Three Suggestions
Situation: A CEO finds that some employees are going directly to her to address issues or suggestions rather than working with their managers to develop solutions. She is concerned on two fronts. First, these matters should be handled between the employee and their manager. Second, this distracts her from higher priorities facing the company. How should the CEO convey this to both the manager and the employee. How do maintain the chain of command?
Advice from the CEOs:
- Concerning the situation where a manager’s direct report is going to the CEO, what is the follow-up with both the manager and the employee?
- The message to the manager:
- You are in your role for a reason.
- You are accountable, and your responsibility is for your team to deliver against company strategy and plans.
- If this situation is repeated I will send these questions back to you, and will count on you to keep me in the loop as appropriate to assure that the solutions are consistent with company policy and objectives.
- The message team member
- It’s okay to share your thoughts with me.
- But in the case of new ideas or suggestions, you need to bring these to your manager so that your manager understands what is going on and can coordinate your suggestions with the activities and priorities of the team.
- How do you set boundaries so as not to step on the toes of managers?
- Set deliverables for the managers, but leave them the authority and latitude to manage those who report to them.
- If an employee comes to the CEO rather than their manager, refer them back to their manager.
- After the fact, follow-up with the manager to assure that the issue or suggestion has been addressed.
- HR issues are handled through the HR process, not by the CEO.
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