In 1979, I was working in my second HR job as an HR generalist for a company called NBI (stood for "nothing but initials"). We made word processing machines when they cost $30,000, and when people bought hardware to ONLY do word processing. I started with the company when it had about 150 employees, and then I left after the initial public offering when the company employed over 1,000 people (that all happened in about 2 years).
In those days of fast growth, living in Boulder, Colorado, I had a tried and true way of handling employee relations problems (e.g. people crying in my office). I would step outside of the crowded offices and walk around the building. The sun shines a lot in Colorado, so you could get away with walks around a building. The change of scenery was great for employees. In fact, this management method was indeed a "best practice" at NBI. When you´re with a company that is growing quickly, there´s bound to be a few bumps in the road, and bumps lead to injuries, and injuries lead to tears. I learned this "walking" lesson in 1979, and here I am - in 2002 - after 20 years in corporate HR jobs, consulting, getting my Ph.D., being on the faculty at Cornell University and University of Michigan Business School - now in the job of President and CEO.
So, what do you think I did just a few months ago? An employee came into my office, started crying, and we walked around the building. Yes, I learned everything I needed to know - not in kindergarten (as the best selling book claims) - but as an HR generalist.
This story may seem silly to you, but as I walked around the building in Ann Arbor, Michigan (hey, I was lucky it was a sunny day) and listened to my employee, I felt like I was back at NBI. When at NBI, I worked for a fast-growth, start-up company. The company that I am running today is a fast-growth, start-up company. While at NBI, my job was HRM. Now my job is HRM. The difference is that I now have a much longer and fancier title.
Now, you may wonder why my employee was crying. You´re probably thinking I wasn´t doing a very good job, and actually, you may be right. The last year was very hard on us "dot-com" CEOs. People who took jobs to be millionaires now had to start working 60 hours a week, and they didn´t see the road to the IPO and retirement any time soon. Fast riches and a fun workplace (with pool tables, dogs, basketball, lunch paid for by the company, etc.), big bonuses, stock options worth millions - hey, that all disappeared overnight. And it has been a CEO´s nightmare.
I´m fortunate to say that my company is still in business and thriving, and it´s because I was able to retain key employees who have worked like maniacs to pull us through the economic downturn. And the way I did this was not by providing them with lavish offices, big bonuses, company cars, or toys at work. The employees who weathered the storm are all motivated by the work and by being part of a team. My lessons learned in the last year are all, I think, HR lessons.
When the going gets tough, you better chip in and be part of the team. There´s no such thing as a MANAGER in a start up or in a struggling company. I had to get in and roll up my sleeves, helping with a lot of the details that I did not have to do when I was a full-time academic and part-time CEO.
- When you don´t have money to give employees, give them responsibility and exciting work. Then, make them accountable, and give them feedback on their performance.
- The CEO´s job is to communicate, communicate, and one more time, communicate, so that everyone shares information and so that everyone feels appreciated.
- Remember when they told us you can´t be strategic in HRM until you did the basics - paid people, made sure benefits work, etc.? The same holds true for a CEO. You can´t even think about long-term strategy until your customers are getting the product, the product works, and your team shows up at the door.
- It´s really hard to fire people, and managers hate doing it. I hated letting people go when I had to do it, and in all cases, I waited too long. In some instances, I stopped people from going when they wanted to leave. That was wrong.
- Listen to your instincts. When I didn´t, it cost me a lot of time and energy.
- Expect a lot from your employees. If they don´t deliver, get them off your team. Start-ups don´t have time to waste. The employees who are energized will be quickly de-energized by poor performers or people with negative attitudes.
- Speaking of attitudes, they are contagious. You have to always be energized and help your employees keep moving forward with positive energy. Negative attitudes and low energy have no place at work.
- Moodiness must go. People who are moody make the rest of your team miserable. It´s not just that they´re negative, it´s that they´re unpredictable. When you´re working hard and have to communicate, you don´t have time to worry about what will happen if you say something the wrong way.
- Teach people who want to learn. Share information; teach; promote. I´m in an airplane writing this article. You know, I never thought I could sell, and that´s what I´m off to do today. Professors don´t sell. HR people don´t sell. Right? Oops, one more lesson learned.
- Sales and marketing skills are important for EVERY job you will ever have. And I learned to sell when I worked in HRM. My very first job in the field of HRM was with Detroit Edison. I was a college recruiter, and it was my job to convince young people to work in downtown Detroit, in a dirty coal power plant, or in some other beautiful location. If recruiting isn´t sales, then what is! Sales skills are needed to build relationships with customers and employees. When the going gets tough, sell.
Our investor and board member, former CEO of Indus International, Bob Felton, came to our offices in Ann Arbor, Michigan last year and wrote his motto on the white board in our main conference room. His take on growth and long-term firm performance is summarized by these three words -- "IT´S SALES STUPID!" As you might guess, Bob is one of those tough CEOs who never liked HRM, but he "adopted" me about nine years ago while I was on the faculty at Cornell (he decided I was untraditional HRM - probably because I was "selling" my research to him).
Bob taught me a lot about being a CEO. He taught me to sell a product. He taught me to make a profit (even when it was unpopular). He taught me to trust my instincts (when a lot of people were telling me the opposite), and he showed me with his actions that ethics and energy (e2) are important for long-term business success. Bob would have been a great HR manager.