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Picking the Right Person

January 7th, 2009

Human Resources 101

Most thoughtful businesses have a selection or hiring tool. The employment process somehow looks at the requirements of the job to be filled and try to match individuals who have the skills, interest and attributes necessary to perform the job in a very outstanding manner. This is probably the way all jobs should be filled, but I wonder if this is the way things are done in some very high profile hires we have been reading about.

To further prove the point that selecting the right people is vital to the success of any organization, just look at the firing of Mike Shanahan, the highly respected Broncos coach and General Manager. It’s apparent to most of us who follow the team that Mike’s dismissal was more because he had not made the right personnel decisions than the right coaching decisions. Somehow the defensive players he selected were unsuccessful and ranked near the bottom of the league in performance. It seems likely that our owner will select two individuals to replace coach Shanahan. One will select players and the other will coach them.

Another highly visible selection process involves our new US President. Of course, time will allow experts to judge the success of his picks. What seems clear so far is that he has tried to apply the business model selecting individuals who have demonstrated skills and achievements over pure political selections. He appears to be valuing pragmatism over ideological concerns.

Selection of the right team is perhaps the most important task any leader has. Many political observers feel that John McCain’s selection of Sarah Palin as his running mate was not the very best choice. Many viewed her selection as politically motivated rather than selection of the very best individual to replace the President should that become necessary. How one feels about this probably revolves around what they view the key Vice President accountabilities to be.

Other politicians have had varied approaches to selecting Senatorial vacancies in their states. In Illinois, it appears that there has been little concern about anything except “What’s in it for me?” Few would embrace this thought process. In New York it seems that the selection will turn out to be a popularity contest, again hardly the right model. Here in Colorado, I think the governor got the selection process right. He surprised everyone by selecting someone not even on the political radar. The governor told us that he believed that his selection was a person who had the correct attributes, personality and track record to play a part in helping solve the important problems facing our nation. Wow…what a concept!

Happy New Year America

January 7th, 2009

 

It’s that time of the year when we become reflective making New Year’s resolutions promising ourselves that we will do better in those areas where we see reform is needed. As we watch the news unfold revealing one negative event after another, perhaps our country needs to make some New Year’s resolutions.

Wall Street and Washington share responsibility for our nation’s financial meltdown. It’s a chicken/egg call to determine which came first Wall Street’s greed or Washington’s see no evil/hear no evil pose. What’s clear is that Washington schemed to make the economy look better than it was, and Wall Street saw the caper as an opportunity to make its numbers too.

For many years the folks on Wall Street have justified ridiculously over-compensating their leaders with the notion that shareholder value justifies the practice. Now when there is no shareholder value, they still insist that the bonuses are needed to retain those who led the downfall. Haven’t they seen Christmas Vacation which teaches us those bonuses should not be totally discretionary?

Baseball, America’s pastime shows some of the same lack of integrity as it allowed the use of steroids to make the game more exciting hoping to fill seats. They, too, see no connection between salaries and excellence paying lots of 240 hitters millions. The New York Yankees, Wall Street’s team, have made over-compensation an art form. They exceed the salary cap annually accepting a 23 million dollar fine from the league as a cost of doing business. The new Yankee Godfather dismissed the practice saying, it’s our family business, and we’ll run it as we see fit.

Pro football, America’s other love, has a new sheriff running the show. There are so many criminals and thugs in football that he has come to town with a new “We’re not going to take it anymore” stance. Meanwhile coaches spy on each other and owners continue to hire more thugs. Jay Leno quipped that the penitentiary has enough pro football players to win the Super Bowl.

College athletics has become such a big business that colleges like the Military Academies, Stanford, Notre Dame and others where the concept of student athletes still remains, can no longer compete with the semi-pro programs. As you would expect, the coaches who deliver millions to the University are compensated with the shareholder value/Wall Street model.

Even in our personal lives cheating is the order of the day. The Divorce rate is at an all time high in America and spousal cheating is the chief cause. Of course, even our government officials have affairs and cheat on nearly everything. They build bridges to re-election, cozy up to lobbyists and choose party loyalty over loyalty to the country and solving its problems. Church membership is down probably because we don’t like weekly reminders of rules we should consider following.

It would seem that I’m suggesting that we are an ethically bankrupt society on a one way trip to oblivion. That’s not what I believe. I believe that the information age is bringing us the wrong information. We are a basically good country made up mostly of decent folks.

We just need a few changes to get back on track….Perhaps some New Year’s resolutions.

Think back for a minute back in the day, when integrity was more evident. We were under the care of parents and teachers who had stricter rules. They made sure we understood the rules. They taught us that winning was also about winning with integrity.

We also understood the consequences of breaking the rules. A trip to the office probably included a whack or two with a sturdy paddle and double jeopardy when word of the misdeed got to our parents. It’s highly unlikely in the day that the Government would decide that the rules governing war prisoners didn’t apply to us because we were all about rules. Businesses employed internal auditors to insure that the company complied with the accounting rules. Now even external auditors have become business consultants focusing on making the numbers rather than auditing them.

So I’m suggesting that America set some new standards or rules and spend some time and energy changing our course as it relates to integrity. So here are my New Year’s resolutions for our country.

  1. As citizens we must tell our leaders we expect integrity to be the center of their values and operations. Punish companies who cheat and throw out politicians who fail to put the country first.
  2. In our personal lives let’s make honesty, including self-talk, the “way we roll”
  3. Reject the lunatic fringe ideas that get undo publication; favoring instead ideas that support balance and are grounded in our belief that we are the United States of America

HAPPY NEW YEAR AMERICA

 

 

Airlines are asking the wrong question….and focusing on the wrong answers.

May 22nd, 2008

David Carpenter of the Associated Press wrote in a Denver Post article on May 20th that the airline industry has almost uniformly made a poor showing on the industry’s latest satisfaction survey. His title “There’s ire in the air” resonates with anyone who has flown recently.

My take is that most airlines not only don’t know the answers, the don’t even understand the question they should be asking.

Many businesses have scraped satisfaction surveys. These companies have come to understand that no one patronizes a company because they are satisfied. In fact, high satisfaction levels may give company officials a warm feeling, but they simply don’t indicate future patronage.

Loyalty is the only factor other than price which the airlines should be measuring and busting their behinds to improve. High customer loyalty does translate into increased patronage. In fact, a Bain & company study has proven across many industries that a 10% increase in net promoter scores (loyalty) translates into a 5% improvement in revenue.

So how can the airlines turn this around? Simply by measuring their net promoter scores and then asking customers what matters most to them? Again and again, the data comes in with a few items offering the potential to drive loyalty (net promoter scores) dramatically higher.

It’s interesting that one airline has adopted this approach. You guessed it, Southwest the leader of the pack in revenue growth, profitability and customer loyalty.

Old Fashioned Service…A New Idea

May 21st, 2008

My high speed provider has a very unusual thought process when it comes to providing problem resolution or other services issues.

Are you ready for this? This provider takes the view that if anything prohibits the customer from being able to successfully use their computer, it’s their (the high speed provider’s) problem. That’s right; they provide answers to the problem whether it’s their issue, a computer issue, a software issue or a telephone company issue.

This company is expanding rapidly, and has demonstrated this unusual commitment to their customers for several years. They pride themselves as giving “old fashioned service” even with this modern product.

Does this make me and other customers more loyal to them? You bet it does, and we tell everyone who will listen.


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