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ã 2003 Hopkins and Company, LLC
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Expectations
Whenever customer and
business expectations are aligned, relationships develop smoothly. Whenever
one party surprises another, or fails to meet expectations, relationships
deteriorate. Organizations acting quickly in response to changing constituent
expectations develop positive reputations. Bosses and subordinates sometimes
need ways to clarify what expectations each has of the other. Sometimes, we
learn more from the unexpected than we do from the expected. The best
executives operate well when faced with both the expected and surprises.
Sometimes, we do what’s expected; other times, we create surprises. In this
month’s issue, we’ll call attention to some recent stories in the news about
expectations, met and unmet, and how executives responded. As you read these
stories, think about your own approach to expectations and surprises. How
likely are you to be successful when the unexpected happens?
Fifteen new books are
rated in this issue, beginning on page 5, two of which received a stingy
one-star rating. Turn ahead to check those out. You can also visit our 2003
bookshelf at http://www.hopkinsandcompany.com/bookshelf.html
and see the rating table explained as well as explore links to all 2003 book
reviews.
“How to Turn Me On and Off”
All leaders have personal
preferences or idiosyncrasies that make it relatively easy or hard for
subordinates to meet a boss’s expectations. We recall Peter Drucker
advising executives in one of his many books that the first order of business
when dealing with a new boss is to find out if that person is a reader or a
listener. Unless you know which style is dominant in your particular boss,
you’ll waste too much time talking to a reader or giving a report to a
listener. We were thrilled to read in The Wall Street Journal (1/7) (http://online.wsj.com/article/0,,SB1041881615563021064,00.html) that at least one boss has found a tool to help
subordinates: an owner’s manual on himself. Ron Goodspeed, CEO of Southcoast
Hospitals Group was hiring a new direct report and wanted to communicate
what it was like to work for him. “The one-page document, based on a
self-assessment and input from associates, was designed to offer tips to the
new VP on how to work for the man who oversees three hospitals and 5,000
employees. … ‘Ask me to “get to the point.” Hint: If I use analogies that are
not clear, please ask me to be more concrete.’ In addition, the manual
instructed the newcomer to warn Dr. Goodspeed if he was ‘charging down the
wrong path.’ He also advised him or her to supply more rather than less
information, and not to test the waters before making recommendations.”
According to the new VP, the manual works. “This is really very helpful because
it saves a lot of time figuring out what the boss thinks of things. My
respect for him went up a notch. I said, ‘Wow!’” The next step may involve
deciding where to affix the warning labels.
How do
those who report to you know the best ways to work with you? Are you aware of
how they interpret your behavior? If you were writing an owner’s manual on
yourself, what would you write? What can you do for your direct reports to
help them and to help you?
Yours, Mine and Ours
Any day now, Viacom
chairman and controlling shareholder Sumner Redstone will decide where
his job ends, and where President Mel Karmazin’s job begins. When the
company proxy is mailed in March, there will be a new organizational
structure. According to The New York Times (1/20) (http://www.nytimes.com/2003/01/20/business/media/20MEL.html)
and The Wall Street Journal (1/20) (http://online.wsj.com/article/0,,SB1043030890284548344,00.html), speculation has begun about who ends up leading
the company. In May, the three-year contract expires under which Karmazin was
given operating control of Viacom following its acquisition of CBS.
The fact that Redstone is 79 and Karmazin is 59 may not make any difference
in how this episode turns out. Both Redstone and Karmazin seem to have
differing expectations of each other. According to The Times, “Mr.
Redstone has seemed ambivalent about whether he wants Mr. Karmazin to remain.
A few months ago, when he began to express confidence publicly that Mr.
Karmazin would stay, people close to the contract talks say, Mr. Karmazin was
annoyed because he found the chairman's predictions presumptuous.” Once their
negotiations are complete, the company can move forward without the shadow of
this leadership confusion. In the meantime, we recommend they both read the
next article on how to step down.
How do you
differentiate your job from those of your direct reports? When there is
overlap, how do you respond? When there are gaps (or white spaces on the org
chart), how are those filled? When negotiating the span of control issues and
accountabilities, how clearly do you communicate your expectations? How well
do you hear the expectations of others? How easy is compromise?
Fifty Ways to Leave
With so many leaders stepping
down, there’s no shortage of role models and advice-givers providing examples
or suggestions on the best way to say good-bye. Thanks to the satirists at
the Capitol Steps, the tune in the background as you read this article
can be “Fifty Ways to Say I’m Sorry”- the Trent Lott arrangement (http://www.capsteps.com/sounds/lott-fiftyways.mp3).
One advice giver, Jeffrey Zaslow, said in The Wall Street Journal
(1/3) (http://online.wsj.com/article/0,,SB1041449740835925513,00.html), “Before you fold your tent, you have to fight off
the brain processes that delude you into thinking that when the chips are
down you're ‘due for a win.’ Too many of us mistake denial for optimism, and
obsession for duty. We seek advice from loved ones and subordinates most
likely to give us the positive spin. But the smartest quitters listen more
closely to foes than friends, researchers say. And when their inner voice
tells them to cut their losses, they pay attention. … Researchers advise:
Write down ‘stopping rules’ before you take a job, outlining which scenarios
and warning signals will cause you to quit. And be honest with yourself about
your delusional impulses.” According
to The New York Times (1/24) (http://www.nytimes.com/2003/01/24/business/24BROA.html),
Henry Nicholas, co-founder and CEO of Broadcom, took a spin on
the “spend more time with family” reason for leaving an organization. “… in a
call with Wall Street analysts yesterday to discuss the company's
fourth-quarter earnings, Mr. Nicholas, 43, said that he had been
contemplating leaving the company since the middle of last year in light of
his marital problems. He said he had taken time off in December and January
to address the matter. ‘I must dedicate my full time to it,’ Mr. Nicholas
said. Discussing his resignation, which is effective immediately, he said,
‘This was driven entirely by personal issues related to family separation and
divorce.’ … Mr. Nicholas was known for his hard-driving anti-Silicon-Valley
management style, which included imposing a dress code, pushing his and his
employees’ limits, and playing as hard as he worked. He bragged about
all-night drinking binges, had a 15,000-square-foot house, a Lamborghini
Diablo Roadster and a personal trainer on 24-hour call.” Imagine what will happen when Nicholas dedicates
his full time to his marital problems.
What signal will tell you that it’s time for you to go? Do you have
“stopping rules” that relate to your current job? What would cause you to
step down voluntarily? Do you usually cut your losses, or gamble that a
string of losses will end with a big win? What’s your personal exit
strategy?
Unintentionally Uninsured
Is your insurance carrier more or
less likely to pay your claims? How would you know? At the same time you
expect them to pay, are you aware that they expect to deny your claim? The
business press continues to be full of stories about insurance companies
focused on loopholes and drawn out claims processes to avoid paying
legitimate claims. We read in The Wall Street Journal (1/16) (http://online.wsj.com/article/0,,SB1042676552679806384,00.html) that a judge upheld a jury award against UNUMProvident
saying the company “had a comprehensive system for targeting and terminating
expensive claims.” Is having a system to target certain claims a prudent loss
mitigation activity or something else? According to the Journal, “a
federal judge in Maryland concluded UnumProvident's behavior, in denying the
Erisa-covered disability-income claim of a Baltimore legal secretary, had
‘bordered on outright fraud’ and that the company implemented ‘an
unprincipled and unreasonable review process.’”
We read in The New York Times (1/24) (http://www.nytimes.com/2003/01/24/business/24CARE.html)
about the approach used by another company in setting customer expectations.
The largest nonprofit health maintenance organization in the United States, Kaiser
Permanente, has updated its website to disclose to the public the
guidelines it gives to physicians on the treatment of diseases. While not
compulsory, the publication of these guidelines establishes a basis for
patient expectations that’s likely to be met by participating physicians.
Kaiser’s action was in response to two lawsuits. “The actions by Kaiser are
the latest example of efforts to help consumers have more informed
discussions with their doctors. Health policy experts say the disclosures may
also help narrow the gaps in the treatments offered for identical diseases by
doctors and health plans across the country.”
We can’t open the topic of being uninsured without some comment on the 40
million Americans without health insurance. New solutions may come from
unexpected places. We read in The New York Times (1/5) (http://www.nytimes.com/2003/01/05/business/yourmoney/05SENI.html)
that Louisiana conservative Democratic Senator John Breaux now
supports universal health care coverage. Under Breaux’s plan, all Americans
will have to buy health insurance coverage from private companies. Those who
can’t afford the premiums will receive support in proportion to incomes.
Under Breaux’s approach, everybody gets in the pool, which should lower the
risk to insurers. Breaux has bridged gaps between liberals and conservatives
before, and may again.
When would you
find out that your insurance carrier is overzealous in denying claims? Do you
really have the insurance coverage you’ve paid for? How zealous is your
company in finding ways to get out of meeting the expectations of your
clients? Are your guidelines or processes transparent to your customers? Do
you help them know what to expect from you? Does the current health insurance
system of many small pools of risk help or hurt you and your organization?
Follow-up
Here are selected updates
on stories covered in prior issues of Executive Times:
Ø The first issue of Executive
Times in April 1999
expressed disappointment that the International Olympic Committee gave
an overwhelming vote of confidence to its leader Juan Antonio Samaranch
following scandals. With a feeling of déjà vu, we read many
articles in recent weeks about more trouble at the United States Olympic
Committee. This time the out-of-touch executive is Lloyd Ward. An
ethics report concluded that he fostered the appearance of a conflict of
interest when he assisted his brother’s business venture. He admits to an
error in judgment. The USOC executive board has his full support. Next stop:
Ward called on the carpet for hearings before Congress as we go to press. For
more about Ward’s prior errors in judgment, see the December 2000
issue about his Maytag exit; the March 2001
issue about his plan to make iMotors a Fortune 500 company, and the June 2002
issue about the accomplishments of his successor at Maytag. The USOC needs
leadership above reproach.
Ø The March 2001
issue of Executive Times featured
Illinois Governor George Ryan in the Legacy column. We called attention
to his suspension of the death penalty in Illinois, despite his long time
support. Ryan concluded that the system was broken and innocent people were
convicted and sentenced to death. It came as no surprise to us that prior to
leaving office in January, Ryan commuted the sentences of all Illinois death
row inmates to life imprisonment. He also issued a handful of pardons. You
can read the full text of his speech in The New York Times at http://www.nytimes.com/2003/01/11/national/11CND-RTEX.html.
Legacy
The Father of Management Consulting
The profession of selling management
advice can be traced to the efforts of Marvin Bower, who joined a small
Chicago engineering and accounting firm during the Depression. Bower defined
the services and standards followed by McKinsey & Company, and
influenced the growth of the entire management consulting profession during
the 20th century. Thanks to Bower, it became a profession. Bower
died in late January at age 99. A man of distinction, Bower called the
company a firm, and its jobs “engagements.” One of Bower’s fundamental
principles was that McKinsey consultants had to place the client’s interests
first. He directed the firm to take on only work that was needed, and work
the firm could do well. He always told clients the truth, not what they
wanted to hear. One obituary (http://www.nytimes.com/2003/01/24/obituaries/24BOWE.html)
related that, “In 1993, at the last of a series of retirement dinners, a
colleague, Jack Crowley, recalled a meeting in which the head of the client
company bellowed argumentatively. Mr. Bower told the executive that his
company’s problem was its top leadership. There was deathly silence. It
happened to be totally accurate. That was the end of our work with that
client, but it didn't bother Marvin.” When he retired, “in perhaps the
ultimate selfless act, he decided to sell his stock to the other partners at
book value, rather than at a vast premium that might have forced the company
into debt. That single decision helped make McKinsey an enduring institution,
by more easily allowing the transfer of ownership and power to larger numbers
of new partners.” (http://www.businessweek.com/bwdaily/dnflash/jan2003/nf20030124_5912.htm)
The day after Bower’s death, McKinsey Managing Director Rajat Gupta praised
him saying “Many of us will continue to make choices for the rest of our
professional careers based in large part on the question we often ask
ourselves: ‘What would Marvin have done?’”
Latest Books Read and Reviewed:
(Note: readers of the web version of Executive Times can click on
the book covers to order copies directly from amazon.com. When you order through these links,
Hopkins & Company receives a small payment from amazon.com. Click on the title to read the review or
visit our 2002 bookshelf at http://www.hopkinsandcompany.com/bookshelf.html).
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Title
(Link to Review)
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Author
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Rating
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Review
Summary
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Purchase
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One
Nation Under Gods: A History of the Mormon Church
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Abanes, Richard
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•••
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Saints Revealed. From Joseph Smith at the beginning to the 2002 Olympics,
Abanes presents a history of Mormonism that reveals them to be a cult, not
the Christian religion they present to the world.
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J.R.R.
Tolkien’s Sanctifying Myth: Understanding Middle Earth
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Birzer, Bradley J.
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•••
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Holy Hobbits. What the value of myth is to all of us, and what myth,
Middle Earth, and Catholicism meant to Tolkien who wanted to return England
to its pre-World War I bucolic life.
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Rodeo
Queens and the American Dream
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Burbick, Joan
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•••
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Pantomime. Thoughtful and well-written perspective on the women who
represented the rodeo and reinforced a way of life in the American West
that never really happened.
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Nine
Horses: Poems
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Collins, Billy
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•••
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Gallops. If you’ve not read any poems by our current poet laureate,
you may as well start with this latest collection. Finely written. Some
funny; some sad.
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Prey
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Crichton, Michael
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•••
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Mechanical Plague. Typical weak dialogue and writing, but strong
plot full of wildly creative ideas. Scary story of the merger of biology
and technology. A quick read.
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The
New Culture of Desire: 5 Radical Strategies That Will Change Your Business and
Your Life
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Davis, Melinda
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•
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Oh O. Thanks to something called The Human Desire Project, we know
way too much about what people want and the lengths to which they’ll go to
get it. Some desires should be sublimated. For more, check out February
2003 issue of Fast Company (http://www.fastcompany.com/online/67/desire.html).
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Seeing
in the Dark: How Backyard Stargazers Are Probing Deep Space and Guarding
Earth from Interplanetary Peril
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Ferris, Timothy
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•••
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Look Up. Outstanding science writer takes readers into the world of
amateur astronomers and the contributions they make. Makes you want to buy
a telescope and look up at the night sky.
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Hornet
Flight
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Follett, Ken
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•••
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Soars. Interesting and appealing heroes and villains whom we cheer or
jeer as the action unfolds. Heroes in trouble at every turn, and villains
get lucky far too often in this exciting tale of the Danish resistance
during World War II.
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The
Spirit of Family
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Gore, Al and Tipper
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••
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256,000 words. 256 pictures on the theme of family show the
diversity and uniqueness of American families.
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Churchill:
Visionary. Statesman. Historian
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Lukacs, John
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•••
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Forceful. Short, breezy, clear and opinionated historical
perspective on three dimensions of the great Winston Churchill. The writing
sparkles.
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Bad
Boy Ballmer: The Man Who Rules Microsoft
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Maxwell, Frederic Alan
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•••
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Madman. Many facets of the journey of Steve Ballmer from suburban Detroit
to a partnership with Bill Gates that changed the world.
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Red Spy
Queen: A Biography of Elizabeth Bentley
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Olmstead, Kathryn S.
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•
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Why Spy? Tedious tale of FBI star witness against her former
comrades in the 1940s and 1950s, sometimes telling the truth and sometimes
lying.
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When
the Emperor Was Divine
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Otsuka, Julie
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•••
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Injustice. Debut novel takes on Japanese internment during WWII with
care and precision capturing the impact on the members of one family at
that time. Poetic voice creates lasting images.
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Officer
Friendly and Other Stories
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Robinson, Lewis
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•••
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Maine Man. Debut collection of stories from Maine writer Lewis
Robinson reveals great talent. Lovers of short stories shouldn’t overlook
this writer.
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What
Color is a Conservative? My Life and My Politics
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Watts, J.C.
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•••
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Preacher. Sermonizing biography of this former congressman. He’s who
he is because of how his parents raised him in a small Oklahoma town. First
hundred of 275 pages brings us through high school.
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