Q: I have four people reporting to me, and I feel like none of them are accountable. What can I do to make them more accountable?
A: Establishing accountability is a common challenge for entrepreneurs and managers. I suggest using a process I learned from a good friend, Henry Chidgy, who once ran several railroad and diamond companies. Henry emphasized the use of monthly performance reviews -- yes, monthly! These reviews, however, need not and should not be complex; they work best when kept extremely simple. Maximum accountability is the main goal.
Here’s how the process works. First, each employee is responsible to bring you all information for his or her review; you should not provide anything. The day before meeting, the employee brings you a list of five or six key objectives, detailing his or her progress on each. During the review on the following day, you simply assess the data and discuss how performance compares with objectives. Depending on the employee, this can be a short 30 minutes process, or as long as 2 hours. (Tip: When an employee comes into your office, he or he should always bring a pen and paper and be required to take detailed minutes of the meeting. Immediately afterward, the employee needs to make a photocopy to go in your file. The reason for this is two-fold: first, the notes allow you to verify the individual’s understanding of the review; second, the notes increase consistency from one review to the next.)
There are three key questions to ask during the meeting:
1) How well did you meet the objectives we mutually agreed on?
2) Choose one of the following:
a) If you are ahead, how did you get ahead?
b) If you are behind, how did you get behind?
c) If you are on target, is there anything I need to know?
i) If yes, discuss further
ii) If no, extol the virtues of coming in one target.
3) If you are not meeting your objectives, what is the root cause?
The third question should trigger a discussion, in which you remain objective. If you can accept the employee’s explanation of the “root cause,” you allow it to be the actual root cause. If you cannot accept this explanation, you become the employee’s coach, helping him or her better understand the situation. Refrain from providing solutions; the employee needs to do this. If you tell rather than ask, you will not have accountable employees. Be patient – having employees solve their own problems is the key to building the accountability you want!
Once the employee develops a solution, I suggest coaching him or her through the following steps:
1) Establish an action plan.
2) Establish a deadline for implementing the action plan.
3) Schedule another meeting immediately after the deadline.
With difficult employees, you may need to increase the pressure, particularly if they consistently fail to meet goals. Pressure can be increased, simply by increasing the frequency of reviews. The process can occur every two weeks, every week, or even daily, if needed. It is unlikely that daily review will continue long term, as an employee at this stage is usually on the way out!
The key is to remain “on board” with the employee, instead of playing “the heavy.” Let the progress reports do the hard work. An added benefit of the reports is that no goal will be overlooked for long, without action being taken. Even if you feel like a micromanager, remember you merely coaching, not giving answers.
Some may ask, “If I manage like this, how will I ever get my own work done?” If this describes you, you need to re-examine your role as a leader. This is what leaders do. You must make time to enforce accountability, so that the team can achieve a common vision. If your employees are not accountable, you will be doing other people’s work for the rest of your career! Remember: If you practice this management style consistently, most of your employees will require very little time. Who knows. They may even become your apostles of accountability, replicating your style throughout the organization!
Sunday, July 17, 2005
Leadership At the Top
Q: I lead a small company, and I manage it very tightly. In meetings, I find I am the only one offering ideas, while others do not contribute. Although my ideas have really worked to grow the company, I feel I am doing it alone. What should I do?
A: If you think you are talking too much, so does everybody else.
Growing up with movies like “Patton” and watching world leaders on the news every night has led to the illusion that leadership means repeatedly giving your opinions. The old school of “command and control” management has been around for decades, passed from one generation to the next. Some leaders may lack self-esteem, and the notion of controlling others may seem an attractive alternative to being controlled.
Remember: If you are not asking questions, you are making assumptions.
Mike, a former CEO and Chairman of a Fortune 100 company, would lead a meeting by first asking a question. He would then listen to the answers from each person present. Mike did not believe it was his job to give his opinion, but to listen to and observe the problem solving of others. He would monitor the room for how people were contributing and, if he noticed someone was not speaking much, he would be overly encouraging and supportive toward that person. This was true even when the employee’s comments were not on track with Mike’s agenda. Mike found that, by providing heavy doses of support over a course of five or six meetings, he could usually draw the employee out to be a fully functioning part of the team. Mike was clear that, if the employee continued to be withdrawn, it was likely he or she would have to move on.
When he encountered an employee who was talking too much in meetings, Mike applied a different strategy. Careful to avoid belittling the person in front of others, Mike would make a sharp comment or a non-verbal gesture that emphasized his desire to hear from everybody.
As a coach, I have been intrigued by Mike’s technique of asking a single question. I have witnessed other leaders use similar techniques, but found them to be somewhat limiting. A team often needs leadership, rather than just consensus. Mike demonstrated that his technique still provided leadership. If certain employee comments began guiding the discussion away from the company’s visions, goals, objectives, and values, Mike would simply ask, “How does this help us meet our goal?” or, “Is this in alignment with our vision?” He had a motto, which he taught to everyone, including me: “E3: Earnings, Earnings, Earnings.”
Mike tells the story of an analyst who asked him about his goals for the company. Mike’s answer was simply, “Earnings.” When asked if he had other goals, Mike said, “Oh, yes. Our second goal is earnings, and our third goal is earnings.” There was no need to ask about additional goals!
As a true leader, Mike ensured understanding. He had a clear message and a clear focus. Printed on company shirts, hats, and posters, E3 became the symbol for driving the corporation forward. When an employee’s comments were not aligned with E3, Mike set the employee back on course and made it clear to others that this was not acceptable.
Mike understands the value of asking questions and doing what all great leaders do – LISTENING. If you want to see change in your company, follow Mike’s example: Ask the question, then be silent and listen. The books on leadership speak much about courage. It takes courage to trust your team. It takes courage to believe your employees will deliver ideas and execute them successfully. Facing the fear of giving up control is what I call “Leadership at the top.” You may be surprised how much your people know and want to contribute.
A: If you think you are talking too much, so does everybody else.
Growing up with movies like “Patton” and watching world leaders on the news every night has led to the illusion that leadership means repeatedly giving your opinions. The old school of “command and control” management has been around for decades, passed from one generation to the next. Some leaders may lack self-esteem, and the notion of controlling others may seem an attractive alternative to being controlled.
Remember: If you are not asking questions, you are making assumptions.
Mike, a former CEO and Chairman of a Fortune 100 company, would lead a meeting by first asking a question. He would then listen to the answers from each person present. Mike did not believe it was his job to give his opinion, but to listen to and observe the problem solving of others. He would monitor the room for how people were contributing and, if he noticed someone was not speaking much, he would be overly encouraging and supportive toward that person. This was true even when the employee’s comments were not on track with Mike’s agenda. Mike found that, by providing heavy doses of support over a course of five or six meetings, he could usually draw the employee out to be a fully functioning part of the team. Mike was clear that, if the employee continued to be withdrawn, it was likely he or she would have to move on.
When he encountered an employee who was talking too much in meetings, Mike applied a different strategy. Careful to avoid belittling the person in front of others, Mike would make a sharp comment or a non-verbal gesture that emphasized his desire to hear from everybody.
As a coach, I have been intrigued by Mike’s technique of asking a single question. I have witnessed other leaders use similar techniques, but found them to be somewhat limiting. A team often needs leadership, rather than just consensus. Mike demonstrated that his technique still provided leadership. If certain employee comments began guiding the discussion away from the company’s visions, goals, objectives, and values, Mike would simply ask, “How does this help us meet our goal?” or, “Is this in alignment with our vision?” He had a motto, which he taught to everyone, including me: “E3: Earnings, Earnings, Earnings.”
Mike tells the story of an analyst who asked him about his goals for the company. Mike’s answer was simply, “Earnings.” When asked if he had other goals, Mike said, “Oh, yes. Our second goal is earnings, and our third goal is earnings.” There was no need to ask about additional goals!
As a true leader, Mike ensured understanding. He had a clear message and a clear focus. Printed on company shirts, hats, and posters, E3 became the symbol for driving the corporation forward. When an employee’s comments were not aligned with E3, Mike set the employee back on course and made it clear to others that this was not acceptable.
Mike understands the value of asking questions and doing what all great leaders do – LISTENING. If you want to see change in your company, follow Mike’s example: Ask the question, then be silent and listen. The books on leadership speak much about courage. It takes courage to trust your team. It takes courage to believe your employees will deliver ideas and execute them successfully. Facing the fear of giving up control is what I call “Leadership at the top.” You may be surprised how much your people know and want to contribute.
Why you need a business plan!!!
Q:In last week’s column, you gave advice about starting a business, and you kept preaching about writing a business plan. I own a business, I don’t have a plan, and I’m doing just fine. What’s the big deal?
A: How do you know your business is doing “fine” if you do not have a business plan? This is like a runner stating that he is “fast” when asked his running pace. Quality and success cannot be measured without having benchmarks and goals. A business plan provides both, allowing you to compare your outcomes to your goals. Without a plan, it is all too easy to keep moving the bar for yourself.
In the words of Alan Lakein, “Failing to plan is planning to fail.” Business owners may neglect planning for a variety of reasons. They may dislike making decisions, or they may worry about how the plan will reflect their success. An owner may feel anxious about documenting (and making “official”) job descriptions, lines of authority, budgets, and marketing plans. An entrepreneur may dread such control measures, feeling that a business plan is just like having a boss! If you build a house without a plan, however, you may find yourself living in what looks like a child’s play fort. Every stage is based on a sudden inspiration, and your new home becomes “curiosity run wild.” A quality architect begins with his or her final product in mind. To build a secure business, you must plan. According to the Small Business Center at Bradley University, 70 to 80 percent of new businesses fail in their first year, and of those that continue past a year, only half survive to five years. Similarly, statistics from Dun & Bradstreet reflect that only 37 percent of businesses with fewer than 20 employees will survive four years, and only 9 percent will survive ten years. In light of such daunting statistics, it seems foolish to take unnecessary risks – like failing to plan.
You may still be thinking, “I can’t make a plan, because things change too quickly.” Although constant change is inevitable in any business, a good plan can be your key to dealing with change. As a sailor, I view a business plan as similar to a centerboard on a small sailboat. Thanks to its centerboard, the boat can continue moving forward, as the winds shift direction; without its centerboard, the boat would flail around and eventually crash. A good plan keeps you consistently moving forward – sometimes slowly, sometimes quickly, but without crashing!
While writing your business plan, you may feel frustrated. After all, you will be writing your goals, without taking immediate action to reach them. You must understand where you are and where you are going, before going anywhere. Writing a plan can be exhausting, too. I guarantee, however, your listless feelings will disappear, as your business transforms from “doing just fine” to “doing very well.”
I hope my response to your question is sufficient and gives you an understanding of why I believe a business plan is critical. Below are some questions to consider while developing your plan:
• Why do I want to start my own business?
• Have I found the right business for me?
• Who are my customers?
• What do these customers need that the market is not currently providing?
• How will I reach them?
• What will it take to reach them?
• How much will it cost to provide for their unmet needs?
• How much are they willing to pay to meet these need?
• Can I make money at this business?
A: How do you know your business is doing “fine” if you do not have a business plan? This is like a runner stating that he is “fast” when asked his running pace. Quality and success cannot be measured without having benchmarks and goals. A business plan provides both, allowing you to compare your outcomes to your goals. Without a plan, it is all too easy to keep moving the bar for yourself.
In the words of Alan Lakein, “Failing to plan is planning to fail.” Business owners may neglect planning for a variety of reasons. They may dislike making decisions, or they may worry about how the plan will reflect their success. An owner may feel anxious about documenting (and making “official”) job descriptions, lines of authority, budgets, and marketing plans. An entrepreneur may dread such control measures, feeling that a business plan is just like having a boss! If you build a house without a plan, however, you may find yourself living in what looks like a child’s play fort. Every stage is based on a sudden inspiration, and your new home becomes “curiosity run wild.” A quality architect begins with his or her final product in mind. To build a secure business, you must plan. According to the Small Business Center at Bradley University, 70 to 80 percent of new businesses fail in their first year, and of those that continue past a year, only half survive to five years. Similarly, statistics from Dun & Bradstreet reflect that only 37 percent of businesses with fewer than 20 employees will survive four years, and only 9 percent will survive ten years. In light of such daunting statistics, it seems foolish to take unnecessary risks – like failing to plan.
You may still be thinking, “I can’t make a plan, because things change too quickly.” Although constant change is inevitable in any business, a good plan can be your key to dealing with change. As a sailor, I view a business plan as similar to a centerboard on a small sailboat. Thanks to its centerboard, the boat can continue moving forward, as the winds shift direction; without its centerboard, the boat would flail around and eventually crash. A good plan keeps you consistently moving forward – sometimes slowly, sometimes quickly, but without crashing!
While writing your business plan, you may feel frustrated. After all, you will be writing your goals, without taking immediate action to reach them. You must understand where you are and where you are going, before going anywhere. Writing a plan can be exhausting, too. I guarantee, however, your listless feelings will disappear, as your business transforms from “doing just fine” to “doing very well.”
I hope my response to your question is sufficient and gives you an understanding of why I believe a business plan is critical. Below are some questions to consider while developing your plan:
• Why do I want to start my own business?
• Have I found the right business for me?
• Who are my customers?
• What do these customers need that the market is not currently providing?
• How will I reach them?
• What will it take to reach them?
• How much will it cost to provide for their unmet needs?
• How much are they willing to pay to meet these need?
• Can I make money at this business?
When to start your own business?
Q: After working at one company for 10 years, I would like to begin my own business. What issues do I need to consider, and how do I know when it is the right time to take the “big step?”
A: Almost 20 years ago, my roommate asked me to spend a day of my vacation in New York spying on his competition at a tradeshow. I made up a story to tell the vendors at the show -- I was planning to start a fundraising call center for politicians and wanted to implement the most advanced technology in the industry. Eighteen years later, my business partner and I were running one of the largest outsourced call center operations in the world!
With a bit of luck and a lot of hard work, we made it, but there is no way to eliminate the risks of entrepreneurship. There are, however, several key questions you can ask yourself to determine whether you are prepared.
1.) Do I have a business plan?
A clear business plan is essential, and the lack of a plan is a frequent cause of business failure. A business plan helps you assess, in advance, how you are going to address key issues. I have found planning software, such as BizPlan, to be very helpful. It may take weeks or even months to develop a quality plan, because your ideas may need a gestation period before fully coming together. Throughout planning, it is important to find a source of objective feedback -- ideally, someone who clearly understands the process.
2.) Do I have the energy and physical stamina for the venture?
Owning your own business typically requires long hours, and stamina is essential. It is common to work 12 to 16 hours a day, particularly during the first several years. Be prepared, and be honest with yourself. If you do not already have an exercise regimen, begin one now.
3.) Can I get the money I need to support the business and myself?
If your business plan is interesting and enticing, money will be available. Although most banks have little interest in financing a start-up these days, they can help you secure an SBA (Small Business Association) loan. An SBA loan can be valuable, even though it may require repayment before you can raise money elsewhere.
Another approach for financing your business is the “family and friends” model. If you go this route, do not overlook the strings attached. Your family dinners and get-togethers can quickly turn into shareholder meetings, particularly when your business is struggling!
There are numerous other options. Couples with two incomes may be able to independently afford the transition of one spouse into business ownership. You may be able to fund the business yourself, especially at the outset. Several years ago, I left my call center business, because it no longer filled my passion. I began my new business, executive coaching for entrepreneurs, by using money earned from my first venture.
4.) Does my family support this?
It is important that your family truly understand the demands of business ownership. There are subtle differences, for example, between working long hours for someone else and working long hours for yourself. "My boss needs this done by tomorrow; I have to miss Johnny’s game" becomes "I need to get this done by tomorrow; I have to miss Johnny’s game." Before writing your plan, make sure all your stakeholders are aware of the details.
5.) How do I feel about making critical decisions and being responsible for others?
Owning a business requires constant decision making, often with no time for self-reflection or opinion gathering. Depending on the business, you may become responsible for other people’s livelihoods. Their families will count on their incomes, and your decisions and behaviors will significantly influence their lives. You will no longer be responsible for your family alone, but for all families supported by your business. From experience, I can tell you that this is more stressful than you might imagine!
6.) Am I willing to do things I have no business doing?
Owning a business may force you to learn subjects and perform tasks that have never been your forte. Aside from French, accounting was my worst subject in school. Today, I am quite good at understanding numbers, purely because accounting skills are critical to successful business ownership. Similarly, I quickly learned to repair computers when we could initially not afford a service contract. If you resist doing things that you do not know how to do, reflect hard on your decision to start a business.
7.) Is your soul calling you?
I have always admired those who just “knew” it was their time, almost as though their souls were calling them. They reached a point when they could no longer work for someone else. Your soul may be calling you. Have you begun arriving to work with your body, but not with your mind? Are you working to earn money, but dreading every moment of it? These are potential signals that it is your time. Just remember, however, your soul does not give a “Get out of writing a business plan” pass. Remember, your business plan is essential.
A: Almost 20 years ago, my roommate asked me to spend a day of my vacation in New York spying on his competition at a tradeshow. I made up a story to tell the vendors at the show -- I was planning to start a fundraising call center for politicians and wanted to implement the most advanced technology in the industry. Eighteen years later, my business partner and I were running one of the largest outsourced call center operations in the world!
With a bit of luck and a lot of hard work, we made it, but there is no way to eliminate the risks of entrepreneurship. There are, however, several key questions you can ask yourself to determine whether you are prepared.
1.) Do I have a business plan?
A clear business plan is essential, and the lack of a plan is a frequent cause of business failure. A business plan helps you assess, in advance, how you are going to address key issues. I have found planning software, such as BizPlan, to be very helpful. It may take weeks or even months to develop a quality plan, because your ideas may need a gestation period before fully coming together. Throughout planning, it is important to find a source of objective feedback -- ideally, someone who clearly understands the process.
2.) Do I have the energy and physical stamina for the venture?
Owning your own business typically requires long hours, and stamina is essential. It is common to work 12 to 16 hours a day, particularly during the first several years. Be prepared, and be honest with yourself. If you do not already have an exercise regimen, begin one now.
3.) Can I get the money I need to support the business and myself?
If your business plan is interesting and enticing, money will be available. Although most banks have little interest in financing a start-up these days, they can help you secure an SBA (Small Business Association) loan. An SBA loan can be valuable, even though it may require repayment before you can raise money elsewhere.
Another approach for financing your business is the “family and friends” model. If you go this route, do not overlook the strings attached. Your family dinners and get-togethers can quickly turn into shareholder meetings, particularly when your business is struggling!
There are numerous other options. Couples with two incomes may be able to independently afford the transition of one spouse into business ownership. You may be able to fund the business yourself, especially at the outset. Several years ago, I left my call center business, because it no longer filled my passion. I began my new business, executive coaching for entrepreneurs, by using money earned from my first venture.
4.) Does my family support this?
It is important that your family truly understand the demands of business ownership. There are subtle differences, for example, between working long hours for someone else and working long hours for yourself. "My boss needs this done by tomorrow; I have to miss Johnny’s game" becomes "I need to get this done by tomorrow; I have to miss Johnny’s game." Before writing your plan, make sure all your stakeholders are aware of the details.
5.) How do I feel about making critical decisions and being responsible for others?
Owning a business requires constant decision making, often with no time for self-reflection or opinion gathering. Depending on the business, you may become responsible for other people’s livelihoods. Their families will count on their incomes, and your decisions and behaviors will significantly influence their lives. You will no longer be responsible for your family alone, but for all families supported by your business. From experience, I can tell you that this is more stressful than you might imagine!
6.) Am I willing to do things I have no business doing?
Owning a business may force you to learn subjects and perform tasks that have never been your forte. Aside from French, accounting was my worst subject in school. Today, I am quite good at understanding numbers, purely because accounting skills are critical to successful business ownership. Similarly, I quickly learned to repair computers when we could initially not afford a service contract. If you resist doing things that you do not know how to do, reflect hard on your decision to start a business.
7.) Is your soul calling you?
I have always admired those who just “knew” it was their time, almost as though their souls were calling them. They reached a point when they could no longer work for someone else. Your soul may be calling you. Have you begun arriving to work with your body, but not with your mind? Are you working to earn money, but dreading every moment of it? These are potential signals that it is your time. Just remember, however, your soul does not give a “Get out of writing a business plan” pass. Remember, your business plan is essential.
How do I deal with A Terrorist?
Q: I am a sales manager for a business services firm in Minneapolis. I am responsible for all new business revenue for my company and I have 5 sales people that work for me. Of the 5 sales people only one is a star performer. The issue I am having is he breaks all the rules and creates really bad relationships with all the other people in the company. I am on the senior team and the rest of them are angry that this keeps happening. While I don't like to hear the comments from the senior team, I am aware that I cannot make my numbers goals and the company can't make there's for the year without him. What do I do?
A: I call this a terrorist! A terrorist is someone who knows what they have on you and they use it to hold you and everyone else in the company hostage to their behavior. I like to take my clients through an exercise of understanding the Goal, Position, and Strategy Questions to determine what actions need to be done.
The first question I ask is, "What is the goal around the problem?" This is to ensure that we are aiming at the right issue. What I invite my clients to do is to first reflect on the organization's overall goal. Then link that to the current situation. This way what ever you do, you will be in total alignment with what is best for the business overall.
In this situation you have identified the fact that in order to make your business units goals and the companys, you need this employee. That is a big step and often time's leaders become so emotionally charged by such situations they act before they consider the goals and objectives of the company or the department. I commend you for your forethought. Typically leaders who do this are considered high in emotional intelligence. This has been shown to be one of the key components in assessing ones long term success in their career.
The next step is to understand the position you and your company are in. Elevate to 50,000 foot level to see the whole situation. Go beyond yourself and ask, "How did this begin to happen? Sometimes we might find the root cause built into the culture of the organization. Is this type of behavior is tolerated here?
In the case of Enron when the CEO learned that two of the traders were stealing from the company he did nothing and then soon after said, 'keep making us money.' What they were stealing was minor compared to what they were making the company. He knew that if he took action, he would stop his revenue machine that he needed because it was his end goal. It also gave permission to the others that if they were that good at making money for the company they could steal from the company as well. It was the outcome they got, should not have been a surprise. This is the extreme case of the terrorist working for the company - and it was exaggerated by a lack of moral compass by the leadership. In the case you present it is apparent that this behavior is contrary to what the leadership tolerates is searching for from a behavior.
Once you go up to the 50,000 foot level and see if the company has had complicity in the situation, than it is good to come down to 10,000 foot perspective and see if "you" have complicity in the situation. To be frank, and I hate doing this in a column where I can't ask qualifying questions, but it is hard to imagine that you did not allow this to happen. It is not about absolving the terrorist from his behavior because that is wrong, however, if you had stopped the behavior cold, this would never have happened. I say this because the solution, what ever one you choose, will need to involve your being mentored or coached into creating boundaries for your team. Without these boundaries you will be faced with this issue again.
The third part of our position investigation is to go to ground level – the situation itself. When we find ourselves in this type of situation with an employee we only have two choices, we can either fire or teach. If an employee makes a mistake, it is because we did not teach them correctly or because they are not capable to do the function. Ask three questions to determine what choice to make. The first, is the employee capable of learning? Secondly, does the organization or I have the time and resources available to train this employee? Lastly, is this employee motivated to learn and change? If you answer anyone of of these questions is NO, the decision is chosen, you need to let this person go. The decision is, as Donald Trump would say, Your Fired!
It is unclear from your description if the employee has capacity to change behavior, so I will assume that he is rather good at what he does for your organization and likely has the ability to change. It is clear that for your number one producer you should have the resources and time to help him come into alignment with the company. The bigger issue is that of motivation. Often times a terrorist does not feel the threat of what can happen to them if they don't start falling in to line. They have become fat, and happy and arrogant! This arrogance is what blocks their ability to realize that they need to change. The company has reached a point where it can no longer tolerate this kind of behavior.
Unlike Donald's TV Drama we live in the real world, and just letting him go is not a great first choice given the companys dependence on his revenue.
In almost all other circumstances the move would surely be to fire, but because this employee mean so much to the organizations health as far as revenue.
The last part of understanding our position is to understand whose decision is it to make, and what needs to be done. If the consequences of your actions will compromise the strategic direction of the company, I would invite you to consider involving the senior team and that the responsibility is yours to deal with it, and the final decision may actually be the teams or the CEOs call, given its importance to the organization.
This is truly a strategic decision then, it is not simply letting one person go, it is letting many people go, if one presumes in a service firm, lower revenue means fewer employees needed to service the customers.
At this point I would coach you to have a conversation with your CEO and the rest of the strategic team and tell them the steps that you are considering and ask these strategic questions: At what point as an organization are we willing to take a principled stance on the issue over that of revenue? Are we clear what the outcome of this will be to our other employees? Will we need to do cost cutting to compensate for this move? What will the industry see from losing our most talented sales person? Will he go work for our competition? What impact will that have on your company? By working through these strategic issues as an organization and lifting this issue to its proper place the senior team - you will be aligning everyone to be part of the process and stop complaining about it.
By going through these questions the conclusion you may arrive at the end of this process is that you use a three pronged approach to dealing with this situation. Executing three plans simultaneously.
Plan "A" You will need to continue coaching the employee towards the behavior that is in alignment with the firm’s values, beliefs, and rules.
Plan "B", at the same time I would highly recommend moving the rest of the sales team to a higher level to loose your dependence on this terrorist, and operationalize Plan "C" and start the recruiting process for the possible if not probable replacement of the employee.
It is important that the others on the senior team and your sales team know that you are coaching this employee in these areas of behavior and that it is not sitting OK with you. But no more information than that - it is inappropriate to say more than that in a public setting. It will build your credibility as a leader and not allow one persons behavior sink the culture the company wants to build.
A: I call this a terrorist! A terrorist is someone who knows what they have on you and they use it to hold you and everyone else in the company hostage to their behavior. I like to take my clients through an exercise of understanding the Goal, Position, and Strategy Questions to determine what actions need to be done.
The first question I ask is, "What is the goal around the problem?" This is to ensure that we are aiming at the right issue. What I invite my clients to do is to first reflect on the organization's overall goal. Then link that to the current situation. This way what ever you do, you will be in total alignment with what is best for the business overall.
In this situation you have identified the fact that in order to make your business units goals and the companys, you need this employee. That is a big step and often time's leaders become so emotionally charged by such situations they act before they consider the goals and objectives of the company or the department. I commend you for your forethought. Typically leaders who do this are considered high in emotional intelligence. This has been shown to be one of the key components in assessing ones long term success in their career.
The next step is to understand the position you and your company are in. Elevate to 50,000 foot level to see the whole situation. Go beyond yourself and ask, "How did this begin to happen? Sometimes we might find the root cause built into the culture of the organization. Is this type of behavior is tolerated here?
In the case of Enron when the CEO learned that two of the traders were stealing from the company he did nothing and then soon after said, 'keep making us money.' What they were stealing was minor compared to what they were making the company. He knew that if he took action, he would stop his revenue machine that he needed because it was his end goal. It also gave permission to the others that if they were that good at making money for the company they could steal from the company as well. It was the outcome they got, should not have been a surprise. This is the extreme case of the terrorist working for the company - and it was exaggerated by a lack of moral compass by the leadership. In the case you present it is apparent that this behavior is contrary to what the leadership tolerates is searching for from a behavior.
Once you go up to the 50,000 foot level and see if the company has had complicity in the situation, than it is good to come down to 10,000 foot perspective and see if "you" have complicity in the situation. To be frank, and I hate doing this in a column where I can't ask qualifying questions, but it is hard to imagine that you did not allow this to happen. It is not about absolving the terrorist from his behavior because that is wrong, however, if you had stopped the behavior cold, this would never have happened. I say this because the solution, what ever one you choose, will need to involve your being mentored or coached into creating boundaries for your team. Without these boundaries you will be faced with this issue again.
The third part of our position investigation is to go to ground level – the situation itself. When we find ourselves in this type of situation with an employee we only have two choices, we can either fire or teach. If an employee makes a mistake, it is because we did not teach them correctly or because they are not capable to do the function. Ask three questions to determine what choice to make. The first, is the employee capable of learning? Secondly, does the organization or I have the time and resources available to train this employee? Lastly, is this employee motivated to learn and change? If you answer anyone of of these questions is NO, the decision is chosen, you need to let this person go. The decision is, as Donald Trump would say, Your Fired!
It is unclear from your description if the employee has capacity to change behavior, so I will assume that he is rather good at what he does for your organization and likely has the ability to change. It is clear that for your number one producer you should have the resources and time to help him come into alignment with the company. The bigger issue is that of motivation. Often times a terrorist does not feel the threat of what can happen to them if they don't start falling in to line. They have become fat, and happy and arrogant! This arrogance is what blocks their ability to realize that they need to change. The company has reached a point where it can no longer tolerate this kind of behavior.
Unlike Donald's TV Drama we live in the real world, and just letting him go is not a great first choice given the companys dependence on his revenue.
In almost all other circumstances the move would surely be to fire, but because this employee mean so much to the organizations health as far as revenue.
The last part of understanding our position is to understand whose decision is it to make, and what needs to be done. If the consequences of your actions will compromise the strategic direction of the company, I would invite you to consider involving the senior team and that the responsibility is yours to deal with it, and the final decision may actually be the teams or the CEOs call, given its importance to the organization.
This is truly a strategic decision then, it is not simply letting one person go, it is letting many people go, if one presumes in a service firm, lower revenue means fewer employees needed to service the customers.
At this point I would coach you to have a conversation with your CEO and the rest of the strategic team and tell them the steps that you are considering and ask these strategic questions: At what point as an organization are we willing to take a principled stance on the issue over that of revenue? Are we clear what the outcome of this will be to our other employees? Will we need to do cost cutting to compensate for this move? What will the industry see from losing our most talented sales person? Will he go work for our competition? What impact will that have on your company? By working through these strategic issues as an organization and lifting this issue to its proper place the senior team - you will be aligning everyone to be part of the process and stop complaining about it.
By going through these questions the conclusion you may arrive at the end of this process is that you use a three pronged approach to dealing with this situation. Executing three plans simultaneously.
Plan "A" You will need to continue coaching the employee towards the behavior that is in alignment with the firm’s values, beliefs, and rules.
Plan "B", at the same time I would highly recommend moving the rest of the sales team to a higher level to loose your dependence on this terrorist, and operationalize Plan "C" and start the recruiting process for the possible if not probable replacement of the employee.
It is important that the others on the senior team and your sales team know that you are coaching this employee in these areas of behavior and that it is not sitting OK with you. But no more information than that - it is inappropriate to say more than that in a public setting. It will build your credibility as a leader and not allow one persons behavior sink the culture the company wants to build.
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