I promised you after my speeches in Florida that I’d provide you with an audio file so that you could benefit from the advice and war stories just as the audience could. Well, here it is!
The speech is, “How Not to Hire a Guy Like Me,” and this one is from my talk with the CEO Council of Tampa Bay. I want to thank them for graciously allowing me to use this recording.
Click Here to Listen to “How Not to Hire a Guy Like Me”
Do you have any questions or comments? Please share below!
Posted in Uncategorized | Tagged CEO groups, florida speech | Leave a Comment »
Have you ever thought to yourself, my employees have no idea what I make, or they have no idea what our profit is on this or something similar? Well let me tell you something: you’re wrong.
There are no secrets in a company. Your employees know.
I once took over at a refrigerator warehouse company and began my job by dramatically slashing the owner’s salary, which was not simply too high for the owner of a failing company in need of a turnaround professional but too high for the owner of any company this size. Oh, and I also fired his grandmother whose salary was also a pretty penny too high.
Later that same afternoon I was surveying the warehouse which was a mile away from the offices and headquarters, and a forklift driver pulls up alongside me. He says, congratulations on firing grandma and reducing the boss’s salary – he should never have been making so much money.
Not only did this random employee already know that I’d done both of these things, but he knew that grandma was on the payroll and the boss was making way too much beforehand.
I’m telling you – your employees always know. There are no secrets.
That leads me to a few pieces of advice:
1. Ensure that all of your employees sign a non-compete/non-disclosure confidentiality agreement. All of them, no matter their position.
2. If you have things that truly must be kept secret, think longer and harder about who has access to that information, what computer(s) it resides on, etc. Despite the fact that everyone is working on or around it, I’m sure that the secret formula for Coca Cola is still secret.
3. Accept that certain information will be public, and use the knowledge of its publicity to your advantage.
What have you been surprised to learn that your employees know?
Posted in An Ally's Advice | Tagged fired, turnaround professional, failing company, employees, salary, secrets, coca cola, information | Leave a Comment »
A while ago I was the CRO of Gulf State Steel in Gadston, Alabama.
We were in a board meeting debating the effects of imported Asian steel on our cost structure – the effects were bad – and we decided that in order to remain competitive we needed to reduce our 2500 person workforce by at least 20% while also reducing certain employee benefits.
The day before we’d discussed this with the union representative, and though nothing was official, the news was out.
BAM!! BAM!! BAM!! BAM!! BAM!!
All of a sudden 4 shotgun blasts hit the windows. I hit the floor.
The other directors and board members started laughing at me.
Apparently, they’d installed bulletproof windows in the board room twenty years ago, because shotgun blasts from the union were not an uncommon event.
Now, why did we get shot at?
You may say, because the union was comprised of disgruntled psychos. I wouldn’t fight you on that conclusion, but if this had been happening for twenty years, then obviously there was something else wrong here.
This steel company was in a crunch. It had a huge cash crisis, and it was knee-jerking. There were no more options to contain costs at this stage than a 20% reduction in the work force.
If the CEO had been proactive in keeping costs down 6-12 months prior, though, these kinds of cost reduction processes could have been adjusted more gradually and reasonably – and in ways that didn’t affect the union so dramatically. Asian steel didn’t just show up right before I got there. This was ongoing activity in his market-place and competitive space.
There were options before the crisis, but no one calls me before a crisis. They call me after, and at that point, it’s my job to save a company – not make a series of strategic moves to oust a stronger competitor.
Be proactive. If you have cost problem, an earlier enacted austerity program could keep you from getting shot at. Avoid knee-jerking, and solve your crises before they happen.
And I don’t care if the glass is bulletproof. When I hear unexpected shotgun blasts, I hit the deck.
Posted in War Stories | Tagged asian steel, bulletproof, CRO, Gulf State Steel, proactive, shotgun, unions | Leave a Comment »
A few years ago I got a call at 2 a.m. and was told by my plant manager in Greensborough that there was a dangerous oil spill at our plant. Hoping to avoid a major catastrophe with the EPA, I jumped into my car and drove to Greensborough. I made it there in record time, hoping to contain the spill by 6 a.m.
As we got ready to enter the plant, two hundred rounds were fired at us from two different uzis.
After speaking with the police later, a member of the railroad crew that our company used came over, pulled his shades down to his nose and looked me in the eyes and said, “If my fellow union railroad members had meant to hurt you, you would be hurt. So, get back in your fancy car and get your ass back to Atlanta.”
So, why did I get shot at – but not killed? Let’s see if you can learn a lesson from my situation and avoid your own problems in the future.
This happened because the CEO of the oil company that I was turning around wasn’t watching its demurrage charges from the railroad. They got their oil off-loaded from the cars but the railroad workers who were supposed to move the cars weren’t moving them, and the charges kept adding up. The oil company had financial controls in place to be notified if certain expenses were growing at an unreasonable rate – and that’s great – but when they got the notices they ignored them for 18 months.
When I go there I started asking questions about hundreds of thousands of dollars of fees; the railroad investigated and found that the three employees who were supposed to be moving these cars out after we emptied them were actually goofing off, playing tennis, fishing and so forth. One was fired and two were suspended.
They retaliated against the oil company by breaking an external oil valve and releasing thousands of gallons of oil, which was heading towards a nearby stream – hello, EPA! – and that brought me there in the middle of the night.
And then the shooting began.
The lesson learned goes back to being proactive and having proper financial controls, but what good are financial controls if you ignore them. Put your policies in place and follow them.
Have you ever experienced extreme employee retaliation?
Posted in War Stories | Tagged employee problems, EPA, financial controls, getting shot at, oil company, proactive, railroad company, uzi | Leave a Comment »
Turnaround is a very high stress game. I don’t mean for me – it’s my job to stay calm, cool and level-headed and avoid letting the CEO do anything rash while he’s worried about losing his business and life.
But the CEO isn’t the only person at a company stressed out by a turnaround and with the ability to do something stupid. Every employee has the potential to set off and do something idiotic, embarrassing and detrimental to a company’s successful emergence from a crisis.
That’s why, as the CEO, president or leader, you have got to maintain your composure. Do not blow off steam publicly, do not be seen to publicly rant and rave and do not be an idiot in the light of day. Employees will follow your example. If you need to blow off steam go to the gym, get a punching bag, go to the driving range or the shooting range or join an underground fight club. Just keep it under wraps.
In times of no crisis, if employees see you taking cash from the register or inventory from the warehouse, they’ll think it’s okay to do the same. You’re the leader.
In times of crisis, when they see you lose your head and freak out, they will follow suit. At the very least, they’ll become disillusioned and less productive, which is the last thing that a company needs in crisis. While going through a crisis, a company needs to operate at the highest level, churning out the best widget at the fastest rate (pending the crisis isn’t in production) and doing its best to stay ahead.
And you don’t have to be a CEO to be a leader. If you’re a manager or just a regular employee, you can set an example as well. Though it’s hard to make your calm contagious the same way your panic might be, just maintaining your stability and work ethic will show others that this is the right course of action.
I’ve talked about crazy Charlie before, who tried to stab his mother in one of the more hostile corporate takeovers I’ve been involved with, and as a result of his crazy actions, the deal to sell the company fell through.
Crazy people doing crazy things – especially in crisis – is ruinous. Keep your head, lead by example and deal with problems immediately. You don’t need mutiny on a sinking ship if you’re hoping to stay afloat.
What’s the craziest thing you’ve seen an employee do?
Posted in An Ally's Advice | Tagged CEO, crazy, driving range, fight club, gym, Jack Nicholson, manager, punching bag, shooting range, turnaround | Leave a Comment »
I like winning. And learning that winning is not always the best outcome in a negotiation is one of the hardest lessons I’ve had to learn in my 30 years in business.
My father used to tell me that being successful in making deals is strongly tied to the ability to leave something on the table for your counterpart – even if you are in a position of power.
“But isn’t it always better to pay less for the same items or to make more money on a particular deal?” – you may ask. Not always, because the “buy low, sell high” principle fails to account for a crucial element in business: relationships.
Back in the day I used to be a very tough negotiator, and I wasn’t even aware of it. I was simply unwilling to settle for a deal that I thought could be more advantageous for me or my side. And I got the best deals. But what happens after you close a deal?
Life goes on and other negotiations and business opportunities come around. And, somewhat inevitably, some of these opportunities arise with folks who know you or have heard about you. Following what I considered to be successful deals at the beginning of my career, I was confronted with the ramifications of the experiences of those with whom I had previously negotiated.
That is when I began to truly understand the meaning of win-win solutions in business environments: the benefits of leaving something on the table so people enjoy working with me and feel like they’ve won, too.
Because of my reputation as a fair negotiator for the past few decades, business partners often seek me out even if the deal with me is slightly less financially advantageous for them. Most negotiation counterparts also come to me with fair deals to start (as opposed to starting at extreme positions) which cuts down the negotiation time and leads to more efficient business deals. Saving time and minimizing stress in business situations is often overlooked when evaluating the process of getting to a solution in a case.
Due to the many good relationships I developed in my industry and other fields, business partners trust me. And trust is one of the most valuable assets you can have in business.
Is my “always leave something on the table” advice applicable to all cases and situations? Of course not. You must know when to focus on a mutually advantageous outcome, and when getting the absolute best price or deal is the only objective. But don’t forget, you may not be seeing the last of the person on the other side of the table.
Do you believe in win-win solutions in business? Do you find them challenging to achieve? Share your story in the comments below.
Posted in An Ally's Advice | Tagged business, negotiations, relationships, win-win | Leave a Comment »
Over the course of the last few months, I’ve had three organizations/businesses bother me in connection with one product sold by one company that we’ll call Round Pals. I found their intersection to be particularly interesting.
Private Company 1
The first organization was a competitor that we’ll call Big Guys. Big Guys wrote a cease and desist letter to Round Pals for using an image online that legally belonged to Big Guys. The cease and desist letter was very well-worded, firm but polite and said, “We would never intentionally infringe on the copyrighted materials of other companies and we believe that Round Pals wouldn’t either, which is why we know that, having brought this infringement to your attention, you will stop using our intellectual property.”
Round Pals immediately stopped using the material and wrote to tell Big Guys exactly that. All was professional and cordial. No harm. No foul.
Private Company 2
The second company was the manufacturer of a major product sold by Round Pals; we’ll call this manufacturer Safe Co. In trying to negotiate for a better price on Safe Co.’s product, based on purchases of the exact same Safe Co.-manufactured product elsewhere, Safe Co. became concerned.
As it turned out, Safe Co. was not selling the product for what Round Pals was getting it for elsewhere, and Safe Co. wasn’t sure how Round Pals was finding the product for so little. However, Safe Co. handled its concern and correspondence in a professional way, despite believing that this, being a safety product, was a major issue. We all really appreciated the way that Safe Co. (so far – the issue remains unresolved) has handled this issue.
Government Agency
And then there was the government agency. Boy was the government agency and its representatives horrible.
They threatened, they intimidated, they bullied, they badgered.
They were rude. They were manipulative. They were unkind. They were unprofessional.
I’d say I’ve never seen anything like it, but as a turnaround professional, I see this all the time.
It was terrible dealing with this government agency because they didn’t care about time or money wasted – they just cared about ticking things off their check lists and moving on. But only moving on between the hours of 8 a.m. and 4 p.m. In the intervening hours they couldn’t care less.
We repeatedly asked this government agency for documented proof of our errors and supposed wrong-doing. We asked to see the regulations. But they had none. Indeed, they misquoted their own documents and regulations, and sent us a 160+ page document about something other than what we were talking about and doing when we asked for clarification on our alleged error.
It was borderline pathetic.
The Moral of the Story
I’ve said it before and I’ll say it again and again and again. We have got to run government more like a business.
There are plenty of problems with the private sector, yes, but when I have private sector problems, I mostly find myself working in professional environments with mutual respect for time, money and energy. We also usually come to fair and amicable solutions to our problems. Not everyone ends up happy all the time or with what they want (often times this isn’t the case), but it’s amazing how different the approach and attitudes can be. Not always, but frequently enough that I found these three instances all revolving around one product a particularly illustrative case.
Do you have any examples that run notably in favor of or counter to my point?
Posted in The Alligators | Tagged business, government, government agencies, private sector, professionalism, public sector, turnaround | Leave a Comment »
Yesterday I was on the radio with Bernie Marcus, retired founder of The Home Depot. We were on the conservative radio show of Michael Hart, and we talked primarily about job creation and the need for government to interfere less with businesses – particularly the regulations that stifle the growth of small and medium businesses.
Though I don’t have a copy of that show yet to post for you, it made me remember that I do have the audio recording of my recent presentation to the CEO Group of Baltimore. It’s one version of my talk, Ten Steps to Keep from Hiring a Guy Like Me.
I’ve posted it here for your enjoyment and referral. I hope it helps you avoid hiring me or anyone like me in the future.
I’m interested to see what the particular steps are that you extract from my talk. Let me know in the comments below. Please share any questions you have there, too!
Posted in Uncategorized | Tagged Baltimore, Bernie Marcus, CEO Group of Baltimore, Job Creators Alliance, Michael Hart, The Home Depot, Turnaround Management | Leave a Comment »
There are all kinds of people you don’t want working for your business. If I did a list post of those kinds of people it would be a mile long – a 100-part series.
But there’s one kind of person you do want: you want the kind of person who is internally driven.
This is a rare person indeed.
If you started your own business you would be described as an entrepreneur. That means that you are, 10 to 1, internally motivated. Perhaps money, fame or success is a driving force, too, but one way or another, the drive to take the actions that lead to those things is intrinsic.
Finding similar people is not easy.
I recently had the pleasure of working with a company where nearly everyone I spoke to was motivated internally (this was not a turnaround – the CEO was just experiencing an interesting situation and needed some advice).
As I spent a little time at this company, I had the opportunity to speak with a number of employees. Every single employee (who are called team members, not employees) I spoke with declared his or her intent to stay with this company for the long run. Employment at this company was “a career” and “not just some job.” It didn’t matter what their pay was or what their titles were. Each and every person I spoke with said that the kind of person who never fit in at this company was “a lazy person.” Every person here wanted to succeed because this was a culture of big moves, success and hard work. And they loved every minute of it. Multiple people said that this was the first place that they didn’t feel like they were going to work. They were finally doing what came naturally.
And as I tried to figure out what kind of company I was surveying, I realized that it was one where the employees were very carefully chosen. They were not just hired to do some job. They were brought in to be a part of a team where everyone was driven to succeed – and not for external reasons but for internal ones.
I encourage you to seek out those kinds of team members who are internally motivated to succeed and to do a great job. They’re hard to come by, but I assure you your company will benefit as a result.
Posted in An Ally's Advice | Tagged CEO, employees, entrepreneur, motivation, team members | Leave a Comment »
Chainsaw Dunlap was a workout guy twenty years ago, who would go into companies, slicing and dicing, laying people off, cutting product lines, and selling off assets as fast as he could. As his name suggests, he took the chainsaw approach.
Chainsaw was a pro at Turnaround 101, but he did it with no finesse. After the slash and burn lay-offs and asset sales, there’s still a company at which you don’t want everyone to be demoralized and miserable.
Not So Chainsaw
I do it slower – more sensually, shall we say, because I like to talk during.
I always make an effort to educate a company’s personnel throughout the process and solicit their buy-in for what I’m doing. This kind of interaction and buy-in doesn’t just need to happen during a turnaround – it should happen all the time.
I suggest that you regularly sit down with your team(s) and have them understand your solutions and decisions – something Chainsaw never did. I’m hardly suggesting that your team gets to vote – a business is not a democracy – but you do need to get buy-in for big ideas and especially to get through hard times or a turnaround.
Buy-in is Key
The reason you need this kind of buy-in is because, as president of a company, it’s unlikely that you’re out there day to day screwing on the wheels of a car, fixing machinery, bolting your widget together, etc. You can’t assuage the negative feelings running through a company when you don’t have access to everyone in the day to day. When you get the buy-in of your team and allow them to understand what you’re doing and why, they will help educate the survivors of the turnaround process to know that they’re going to be better off after the turnaround.
I was taking my son to school years ago, and he asked me, “What are you doing today?” I told him that I had a rough day in store because I was going to Philadelphia to layoff 200 people and close a division of the company I was turning around.
He looked at me like I was on ogre, and asked how the kids of those laid off would be able to afford camp, get baseball gloves and enjoy candy. I told him that I understood his questions and concerns, but by laying off 200 people and closing one plant, I was saving 600 jobs and keeping the company alive. It’s not that what I had to do didn’t stink for some, but it was for the greater good.
The challenge at that moment is to ensure that the 600 employees remaining are reenergized, reengaged and brought into the process of what comes next. That is, you’ve got to communicate and get buy-in.
Communicate Fully
If you go through a rough patch at your business and the people there really hate you then they will cease to fully contribute, leave, cripple your company and make you conclude that you shouldn’t have spent money on a turnaround in the first place. You should have resigned to call it a day and get on with your life because everyone else will have, too.
Companies – like militaries, countries, families and people – face hard times. As your company’s leader, it’s your job to get everybody through the hard times and make sure that they are prepared to see the good ones again.
Only the best innovators, products, companies and employees will survive a turnaround. If you insist on every social program that keeps everyone around, no one will have enough. It’s better that some do, and it’s best that they understand what’s happening and why. Open communication and buy-in will steer your company through hard times.
Posted in An Ally's Advice, War Stories | Leave a Comment »
