I'm befuddled....

An email came out to all hands today. Under the imprint of the VP of HR, it asked for suggestions for cost reduction in the company. I have never been so embarrassed in my life. It read like a plaintive cry for help from those left on board the Titanic as the bow started to point toward the sky.

Even more shameful was the water cooler talk about the memo. I'm left with no doubt why we are struggling. A vast majority of our employees are 15 watt bulbs in a 60 watt fixture. Some thought that they would be more productive if they could wear jeans to work. Some thought that the coffee rooms were boring. Not one single person mentioned an idea that might make work flow more smoothly. No one had any thoughts that would eliminate waste. Everyone thought about themselves.

Oh, and everyone was unanimous in the suggestion that we should cut 5 VP jobs. But invoking the Wayne Gretzky Rule, you can't submit that idea.

We have avoided building a culture that promotes creativity and waste reduction in the workplace. Instead, we have allowed empire building and silo management. Now we are paying the price for that. And one memo asking for your best cost reduction idea isn't going to produce anything of significant merit. Oh, the prize for your suggestion is 3 extra days PTO. With the stern caveat that it has to be taken this year. I haven't taken all my PTO in any year I've been employed here.

I'm saddened by the approach taken by senior management. I'm saddened by the response of the employees. There are some skilled, talented hard working people in our company. But that could be said for the passengers on the Titanic too. This is a time for strong, decisive leadership. Instead, we get a memo from HR (HR? You can outsource all those roles PDQ).

I guess I should have seen it coming. It's happened in the past. Those responsible for leadership in some areas manage to slide under the radar until the storm passes, then they rise up again to bask in the limelight and take credit for the work of others. Would anyone like a nice cold glass of orange juice?

A number of years ago, I had an opportunity to work with the consulting company Cresap. I led a team of 12 managers on a project to take $3 million in expenses off our bottom line in the logistics and warehousing areas. We took $4.5 million at the end of the project. It took us 90 days to study and implement the plan. Other teams attacked different parts of the company - sales, corporate structure, everything was fair game. In the end, we took about 17% off the expenses line. And the savings stuck. It was a fantastic experience for me.

One of the main rules was that anything goes. If the team decides that some sacred cow has been around too long, they could put it on the chopping block. Thus, I said goodbye to our department's use of a suite at the Saddledome. Our Warehouse Manager had claimed for years that suppliers would not ship direct. One phone call to a supplier revealed that not only would they ship next day direct, they would pay the freight on any order over $200. We said goodbye to 2 warehouses.

No, it takes more than a memo from HR to generate effective cost control measures. I fear we don't have the right stuff to implement what needs to be done.

The Evil of Shirking Management Responsibility

I spent nearly four weeks away from the office before the Christmas break. Three weeks in Edmonton where we were purchasing a small company to get a toehold in the Western Canada marketplace. Then we took a cruise for a week. The cruise, our first, was very relaxing and we’ll definitely do that again. The three weeks in Edmonton were a mixed blessing – it gave me a chance to see nearly all my family, but the acquisition didn’t go smoothly. I should have known, but hope always springs eternal that one of these will go exactly as planned.

One of the things that I discovered was that I enjoyed being away from the “nattering nabobs of negativism” in the office (a prize if you can name that quote – email me by Jan.31^st). My employer is, as one customer once said, the “bastard stepchild” of the union of two large companies. And those two firms had completely different operating philosophies. One was a shirt and tie kind of place with lots of written processes and procedures. The other was a jeans and t-shirt place with an “anything goes” type of attitude. Put them together and what do you get? Chaos. Of course, egos were bruised as one side or the other had people appointed to management positions and changes were implemented. You’ve been there before.

But that was 8 years ago for crying out loud. And many of the veterans are still whining and moaning about how things used to be and how terrible their life is. We’ve had some tough financial times, and staff have lived through some layoffs and wage cuts. We even had a year where we had a mandatory day off per month without pay. I never had the day off, but the paycheck still had the deduction. Lots of people think they should be promoted and question the promotions that others get.

So I discovered that the negativism of the place has really been draining me. I heard that the temp agency we use has reported that some of the temps even comment on the negativism. In the old office, it was like bad karma. It was in the air we breathed. I think of CEO thought that moving to a new office would purge the evil, but it looks like it was packed and delivered to the new building as well.

Sigal Barsade, a Wharton management professor who studies the influence of emotions on the workplace says "We engage in emotional contagion. Emotions travel from person to person like a virus." Well duh, was my first thought. But is it important? Does it affect output if staff are negative? Barsade’s findings: Employees' moods, emotions, and overall dispositions have an impact on job performance, decision making, creativity, turnover, teamwork, negotiations and leadership. Negative emotions yield negative results.

The negativism in our place is work focused. I’m not talking about the occasional grumps or bad hair days we all have from time to time. This is people being consistently negative about their jobs and the company. And you know what I think? If you don’t like your job or the company you work for, go get another job.

Managers are shirking their responsibility by not dealing with this issue. And it’s a front line managers responsibility to handle it. Part of the problem might be that it’s managers that are the disenchanted. Still, those up the food chain need to fill their responsibility by dealing with it.

It’s not a manager’s job to make the employee feel happy and joyous. As a manager, I can’t help you feel happy about life if you’re depressed over your spouse’s fidelity or your inability to make your car payment or any of the other pressures of life. I remember a great Youtube clip about a young man and older man on a bus in Korea. The older man was loudly talking on his cell phone and the young man politely asked him to keep the noise down. Bus Uncle exploded in a rant that went on for five minutes. I keep waiting for the kid to say “Alright, old timer. I asked you nice. Now I’m going to shove that cell phone…” But he never did. He was always polite and respectful. But one line from the old guy has stayed with me:

“Pressure? I got pressure. Everyone got pressure!”

When we go to work, we are on stage. We have a role to perform. And that means that if our emotions are in turmoil, we need to suck it up and put on our stage makeup and get on with the show. Everyone got pressure.

Being a manager means dealing with under performers. I find that managers fear this part of their job. It’s natural to want to avoid confrontation, but if you are a real manager, you have to deal with the issues that negatively affect performance. This attitude is toxic, and it has to be eliminated if the organization is going to grow and thrive. Positive attitudes are like oxygen. It helps things grow. Negative attitudes are like diesel exhaust. It poisons the air and kills things. And your responsibility as a manager is to make the business grow. Do your job.

More on managerial responsibility later.