Monthly Archives: February 2010

Value is Not Created in the Executive Suite

executive_towersOver the weekend, we finally got around to watching the first episode of Undercover Boss, the new show on CBS. We also caught the second one so now we’re current.

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icon for podpress  Hear George & Mary-Lynn discuss management lessons they learned from Undercover Boss on The Bigg Success Show! Click the player [6:47m]: Play Now | Play in Popup | Download

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It’s an interesting concept – sending the CEO into the organization as an entry level worker.

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marylynnIt made me think about visits from corporate managers when I worked in radio. When they rolled in, the red carpet was always rolled out!

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georgeHey, I made a lot of money from that red carpet! When I owned my carpet cleaning business, we were always getting called out to clean up because corporate was coming in.

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Well, there’s no cleaning up on Undercover Boss. That’s why we like the concept. If corporate managers never see the organization as it actually is, how can they understand what is really going on in their organization?

It’s management by walking around with blinders on!

That’s probably worse than not walking around at all – managers impede the very productivity they’re preaching about.

The people behind the productivity
It was inspiring to see such hard-working people. In an hour long show, you only see a handful but, in any successful organization of the size of those featured on this show, there are hundreds – or more likely thousands – of them.

The first show was with Larry O’Donnell, the President and Chief Operating Officer of Waste Management. It’s amazing what you can learn when you’re on the job.

Like when he rode in the garbage truck with a driver who was a woman. She had to pee in a can. (And it definitely wasn’t a very large can!) She said she couldn’t make all her required pickups if she left the route to go to the bathroom.

He saw again and again how his efforts to improve productivity affect the most important people in his organization – his employees and his customers.

Productivity is important but it’s the people behind the productivity that make the productivity possible. Policies and processes that forget the people impede productivity. 

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Ivory tower concepts often don’t translate well in the real world. Instead of creating value, they dampen its growth at best and destroy it altogether at worst.

No, you can’t create value from the executive suite. Value isn’t created in the board room. So where is it created?

Value is created on the front line.
Leaders have to take care of the people serving the customers. Obviously, there are the external customers.

But there are also internal customers. The next person in the process may be the customer. Every person in every organization has at least one customer. If they don’t, they aren’t necessary!

Value is created when executives choose to connect with their people. 

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marylynnWhen I worked in the corporate world, I remember corporate leaders blowing into town. Usually they only met with the local managers. That’s what I really like about this show – I like leaders who take time to talk with all of their people.

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Value is created when the person closest to the problem offers the solution.

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georgeI’ve had a fair amount of success in my career with this. I found that – by encouraging people to offer solutions when they were presenting a problem – they often had much better ideas than I ever would have had!

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Value is created when you recognize ordinary people doing ordinary jobs extraordinarily.

Recognition goes further than just about anything in getting people on board and getting them involved in making the organization even better.

This is something you really notice on this show. It’s amazing how much people appreciate being told that they’ve done a great job. And that they’re appreciated. It’s golden!

You don’t have to go undercover to create value.
You can do it just by getting out from behind your desk. It all starts with a conversation!

Don’t stay undercover.
Tell us what you think. We’d love to hear from you!

Subscribe to The Bigg Success Show in iTunes. 

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Direct link to The Bigg Success Show audio file:
http://media.libsyn.com/media/biggsuccess/00554-021610.mp3

Related posts

If You Want to Increase Your Profit, Don’t Put Your Customers First

To the Entrepreneur Go the Spoils Eventually

(Image in today's post by Bubbels)

Taking the Off Ramp from Social Networking

off_rampWe’ve been doing more and more presentations on using social media in business. We’ve also been getting busier and busier helping small businesses find ways to create business value from social capital.

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icon for podpress  Hear George & Mary-Lynn discuss today's topic on The Bigg Success Show! Click the player to listen [5:41m]: Play Now | Play in Popup | Download

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Social capital is intangible. So it will never show up directly on the Balance Sheet of any business. However, it very well may be the single most important form of capital in today’s business world.

Defining social capital
Conceptually, we can define social capital as the amount of emotional goodwill that exists in a single relationship with a key stakeholder (or potential stakeholder) in a business. Our total social capital then would be the sum of the goodwill in all those individual relationships.

To add to our social capital, we must invest in our relationships. However, unlike other forms of capital, the investment is non-monetary for the most part.

You may share knowledge (which cost you money and/or time to obtain).

You may invest your time (of course, time is money).

Or you may do what our friend, Debby Auble, did. 

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Exit from social networking to the real world

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marylynnGeorge and I both had terrible colds. I updated my status on Facebook, saying maybe if we took enough cold medication, the Super Bowl commercials would be even funnier.

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Well, apparently Debby was paying attention. She noticed that a number of her friends were feeling puny. She took the information she learned in the virtual world into the real world.

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georgeThe next day, she showed up at our house with some yummy homemade chicken noodle soup! She made up a whole batch so she could take it around to all her sick friends.

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Debby’s a local realtor. She also remodels homes. She has one that she finished recently that is just incredible. She took painstaking details to make it the model green home. Now it’s a cool house with a cool story.

The expected returns on the investment
What Debby did had nothing to do with business. She did it because she’s a good person, a good friend. She didn’t do it with an expectation of any personal benefit.

That’s how social capital is built. You don’t invest with the expectation of a return. You give – just for the joy of giving. Fate (or whatever you want to call it) tends to reward people who do that. 

Integrating the two worlds creates opportunities
Social capital is best built through integration. It grows – not as an “or” – not online or offline – but as an “and” – virtual and real.

If it weren’t for social networking, Debby probably wouldn’t have even known we weren’t feeling well. So social networking creates opportunities to create social capital that wouldn’t exist without it.

Debby could have sent a digital get well. That would have been nice.

But what she did was much better. She reached out in the physical world in a way she couldn’t have done in the digital one.

That’s how the intangible becomes real. This post is one manifestation of her kind act. 

Word of mouth offline is good but it just kind of floats. It’s still intangible.

Word of mouth online is very tangible. It’s there for the record. It’s powerful because it’s visible for everyone to see.

Opportunities to build social capital are all around you. Sometimes they’re inclusive to the space. Sometimes it pays to take the off-ramp to find the recipe for bigg success. 

Subscribe to The Bigg Success Show in iTunes. 

Subscribe to the Bigg Success feed.

Direct link to The Bigg Success Show audio file:
http://media.libsyn.com/media/biggsuccess/00553-021210.mp3

Related posts

The Coming Age of Small Business-Part 2

The Coming Age of Small Business – Part 1

(Image by thisisbossi,CC 2.0)

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