Category Archives: Business

Kaepernick and the Cause Célèbre Curse

Colin Kaepernick, from a business perspective, is not worth the risk.  It has nothing to do with his political views, his kneeling, his public comments or personal beliefs, nor his athletic abilities or skills.  Rather it has everything to do with his being a cause célèbre.  The more support he generates, the more celebrities who publicly plead his case, the more organizations and movements that march, the more stories and media coverage, the less hirable he becomes.  This has nothing to do with athletic ability, nor does it have anything to do with politics or race.  Rather, it has everything to do with business.

The emotion and “noise” surrounding Kaepernick is currently being directed at the NFL, its commissioner, its teams and team ownership.  With 32 teams and a very public commissioner, in raw numbers, each team simply has to shoulder 3% of the heat.  However, the team that hires him would then take-on all the baggage he brings.  All the noise, the emotion, the attention, the vitriol, the passionate supporters, the messaging, the questions, the disruptions.  All of it, all the time.  Thus, Colin Kaepernick cannot be hired by any NFL team.

The only thing harder than hiring someone is firing someone.  While it sounds harsh, it is  reality.  While it might be tempting to hire Colin Kaepernick, especially as injuries mount over the course of an NFL season, and he is someone with a very rare skill set – NFL quarterbacks are not easily found – he simply brings too much baggage.  And if an organization decided to accept all that hiring him entailed, the idea of not playing him and potentially having to fire him – it is simply not viable.  It is a sad irony, the more people, and his fellow players, try to support and help Colin Kaepernick find work, the less hirable he becomes.

 

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The “Too Valuable” Fallacy

“To every thing there is a season” or so said Pete Seeger and the Byrds, or the Book of Ecclesiastics in the King James Version of the Bible, depending on one’s preference.  And in keeping with the ends of the personal preference paradigm, Fox News has shared a classic business lesson.  No, not “those” kinds of lessons.  This is one of those timeless lessons of business, of life, of organizations and leadership.  Ford did it with Lee Iacocca.  The 49ers traded Montana and the Colts let Peyton go to Denver.  The Today Show let Katie go, ESPN has lost almost everyone, and even MJ and the Bulls came to an end.  And every company in history has parted ways with their top sales person.  Eventually, there comes a time when those “too valuable” are simply not that valuable.

Fox News as an organization has demonstrated that maxim that “no one person is more valuable than the overall organization”.  Everything else about Fox News aside, there is no denying, they have put the good of the organization above some of the most “valuable” personalities in the infotainment industry.  For various reasons, which we will not discuss or debate, Fox News has parted ways with two hugely successful personalities in Bill O’Reilly and Megan Kelly.  Vastly different scenarios, but the fundamental truth remains:  the organization was placed ahead of the individuals.

It is quite easy to fall into the leadership trap that the team, the organization, the business, the company, cannot survive without the “top performer”.  While it is true that great talents, performers, sales people, operations leaders, analysts, skilled craftsman, or the uncounted millions of committed team members are all special, there are some that just seem to have more of an impact.  They apparently are the one generating the lion’s share of the revenue, that are the driving force in innovation and change, that are the glue that holds the team together, that are simply “too valuable”.  Yet eventually, there comes a time.

It was a key component of military life, no one is indispensable; the mission and the team come before the individual…no matter whom it might be.  The same holds in sports, entertainment, and business.  Sure, those special “stars” can have an enormous impact, but the Bulls remained relevant without MJ, the Broncos have won after Elway (thanks Peyton), the Today Show is back on top, ESPN marches on, and Ford has continued to build cars.  And the country carries on regardless of who is in which office.  In fact, quite often organizations and individuals flourish after the split.  “A time to embrace, and a time to refrain from embracing” as the lyric or verse reminds us.

It is challenging for leaders to take the long view when the decision is at hand, but while the temptation is there to make “just one exception” for that great talent; to retain and profit from that special person a little longer, let Fox News and Bill O’Reilly pass through your mind.  He was a ratings and revenue goldmine for the network, and while his particular scenario made for a relatively easy decision, most are more of the Megan Kelly variety – tough calls, but in the end no one is indispensable.  Ever.

 

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Being Correct and Being Right

There are accidents, mistakes, “missteps” and “misspeaking”, errors, glitches, oops, oversights, old fashioned screw ups, and then there are just complete debacles.  United Airlines and their CEO Oscar Munoz are in the middle of an ongoing series of self-inflicted mistakes.  They have moved from a comedy of errors that will literally cost them tens of millions to becoming pop culture icons…for all the wrong reasons.  They are the butt of jokes, memes, hashtags and certainly in the crosshairs of countless law firms.  In short, they are in a real mess.

None of us will ever truly know the whole story, and in the end it does not make one ounce of difference.  The damage to both the company and Mr. Munoz has been done.  They will be living with this mess and its fallout.  While not inclined to pile on, I am reminded of an old leadership adage:

“You do not have to always be correct, but you should always be right.”

It was a phrase, well actually a sentiment, while phrased differently depending on the situation, but a leadership maxim that was repeatedly drilled into me over the years.  The idea that doing the right thing is always the proper decision.  While not often, but there will be times that the “right thing” might not be the “correct thing”.  The spirit of the law, the intention of the law, trumps the letter of the law.  That sometimes sound judgement is more important than “going by the book”, that being a compassionate leader is more important than being a by-the-numbers manager.

Were the gate agents, the crew, security, etc. all doing what the manual said? More than likely the answer is yes.  Was doing exactly what the book said right?  Clearly not.  While we can all acknowledge that policies, procedures, “the book”, the law, etc. exist for tried and true reasons, not the least of which is to avoid mistakes, but there still exists the need for logic and good judgement, and it is incumbent on leaders to both exercise said logic and judgement, and to empower their people to exercise the same.  And when it comes to working with other people, there is no more critical time for sound judgement and logic.

In an era where automation, binary decision trees, micromanagement, 360 reviews, quarterly reports, litigious fear and corporate policies drive the daily decisions making, it is wise to sometimes pause.  A leader, and everyone, need to take a look at the bigger picture, consider the message, the audience, and above all the individuals involved, and then make a decision.  It was an old adage of an earlier life, “don’t do anything you do not want to see on the front page of the paper”.  The same idea applies…do not do anything you do not want on FaceBook Live, Instagram, Twitter, etc.  Everyone has a phone, which has a camera, a video function and instant connection.  Screaming after the fact “I was just following the rules” will not be a message that resonates.

Sometimes it is better to be right than correct.

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Peyton and Being Likable

All it takes is a catchy jingle and you have a pop culture phenomena.  Well done Nationwide Insurance…”Nationwide is on your side” easily becomes “being likable makes all the difference”.  People like what they relate to, what makes them feel comfortable.  There is no question, Peyton Manning has hummed his way into the American consciousness as “a good guy”.  Of course it does not hurt that he is widely regarded as the face of his sport, one of the all-time greats, and is standing at the threshold of a storybook ending to his career.  Peyton winning Super Bowl 50 – it is the stuff of legend.

It has been called many things, with the current flavor being Emotional Intelligence or EQ.  Then there are the more traditional “cultural fit”, interpersonal skills, or empathy.  In its simplest form, being likable, a nice person, is one of the most valued traits in all of hiring.  Never, not once in all the years and the literally thousands of hiring conversations we have been privy to, has the phrase “you know, we do not like them; heck they are a real jerk, but we will hire them anyway” ever been used.  Not one time.  Countless times we have heard the inverse.  Being likable brings an enormous degree of benefit of the doubt, of a higher forgiveness factor, of being given a chance, or two, or three.  It is a classic idiom of sales, “people do business with people they like”.  Throughout his career, from college to the NFL, Peyton Manning has ensured he remains at the top of the likable list.

There is no greater illustrator of the “likability factor” than Tom Brady.  It was one of the stories of 2015, Deflategate.  The Patriots, their coaches and Tom Brady have a long history of pushing the edges, testing the lines, but also of grinding, studying, preparing, and of winning…a lot.  Tom Brady, despite all the wins, all the championships, the spotless record, the incredible story of afterthought to champion, of a relentless work ethic, of being the consummate leader and professional, remains unlikable.  He is not like everyone else, his life is not like ours, he is apparently aloof, cold and distant.  Tom and Peyton literally have the same job, live a life wildly removed from the vast majority of us, yet one is perceived completely differently based on “likability”.

An athlete, the face of their sport, considered by many to be the best of a generation, dominating the competition, setting new records, a marketers dream, giving back to the community and charities, the personification of the comeback, overcoming career ending medical challenges, returning to form and dominating.  It is a timeless story.  And when doubts and dispersion are cast, as always happens in our society, when the “too good to be true” flag is waived, being likable will save the day.

It is comically sad.   Peyton and HGH – 100% benefit of the doubt.  Disparage the source of the story, proclaim innocence, threaten lawsuits, be folksy, be hurt, be staunch yet wounded.  Peyton is righteous.  He is likable.  Looks like Peyton learned the lesson of Lance Armstrong…being nice will get you the benefit of the doubt, and sometimes that is all that matters in the court of public opinion.

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Kaepernick and the Importance of “All The Other Things”

Yesterday’s hero is tomorrow’s bum.  It is a sad fact of life, regardless of industry, sport, volunteer organization or community group.  Rarely does one person succeed or fail alone, however it is far easier to lay the blame on one individual than to take a hard look at an entire organization.  Colin Kaepernick was able to reap the glory and the rewards as an NFL quarterback when he was the face of the 49ers in their Super Bowl and NFC Champion teams.  Less than two years removed from such heights, he is paying the price as the franchise struggles, finding himself benched.  How quickly things change.

Colin Kaepernick’s fall from grace parallels the 49ers slide from the top echelon of the NFL.  As with most things in life, there is plenty of blame to go around, and the truth tends to lie somewhere in the middle.  It is highly doubtful that Kaepernick suddenly forgot how to play the game, that his talent suddenly evaporated.  Conversely, the organization did not suddenly implode.  The other players did not suddenly forget how to block, run, catch and defend.  However, this story is a great reminder that there is a lot more to career decisions than just money.

There tends to be 5 criteria or “buckets” that enter into the decision-making process regarding jobs and/or job changes:

  • What is the job?  What is it you will be doing?
  • Who will you be working for and with?
  • The culture/environment/dynamic of the organization, industry and team
  • Are you set-up for success? Do you have the resources, support, etc.
  • What is the compensation and how are you paid?

There is actually a rank order to that list, and while the middle three can change in relative importance, the first and last items are and should remain where they are, first and last.  What you will be doing trumps all else, and compensation only matters if the previous four items are in alignment.  While most folks agree with the 5 items, many disagree with the relative order.  Most folks place compensation above all else, and that is where most problems start.

Looking at the above list relative to Colin Kaepernick, it is easy to see how the first item did not change – he was a quarterback and his job did not change.  Did he fail to develop his professional skills?  Did the competition improve their game? In both cases, probably yes, but in the end, he did not suddenly forget how to be a quarterback.

Who he is working for and with changed dramatically.  Jim Harbaugh left as head coach, and with him went the entire coaching staff.  The individual players who make up the team also went through massive change.  While the job did not change, his leadership, his coaches, his coordinators, and his co-workers all changed.  That is an enormous issue.

With leadership change comes cultural and organizational change.  Sometimes it is good, sometimes it is bad, but it does change.  By all accounts, the 49ers were a well run, professional, no-nonsense organization before.  Now, well they seem to be struggling to find an identity; they are not the organization they were when they were winning.

Change the members of the team, change the leadership, and change the culture, and the result is you change the very things that enable one to succeed.  Talent, hard work, dedication, and passion can only get one so far.  To borrow a phrase, to one degree or another, it actually does “take a village”.  For Kaepernick, the talent around him on the field, on the sidelines, in-game planning and preparation, the culture of the locker room, in the front office, everything changed.  Apparently not for the better.  Regardless, it is not a scenario where one is set-up for success.

In less than 2 seasons, he and the team have become a glaring illustration of how there is much more to the debate than just compensation.  Kaepernick, based on his earlier success, was able to secure a lucrative contract.  Good for him.  It is not healthy to begrudge someone getting paid.  However, his level of compensation impacted what the organization had available to pay others.  The team around him slipped in talent level.  There was a conflict in leadership, and his coaching staff changed.  The culture around him and the general work environment changed, and the support and tools to succeed went away.

When debating that next promotion, that great new job with the great pay, the new bonus potential, the corner office, the sweet benefits, the next contract, stop and think about Colin Kaepernick.  Pro Bowler, Super Bowl playing, NFC Championship winning quarterback, huge new contract, to the bench in less than 2 years.  Sure, he gets some of the blame, but just as his success was not a one man show, neither is his failure.  Take a hard look at that offer, make sure what the job is, who you will be working for and with, do you have the resources, is the corporate culture good, and then worry about the money.

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The Very Real Costs of Bad Hires

It is one of the great “known unknowns”, to borrow one of the infamous Donald Rumsfeld lines, what does a bad hire really cost?  Hiring is an art and a science.  It is a unique combination of relationship building, a leap of faith, part quantitative and part gut feel, but it is also a process of vetting both the person and the role you want and need filled.  It requires a level of discipline and focus, commitment and patience that is difficult to maintain when there is a pressing gap in staffing and leadership.  However, succumbing to a false sense of urgency and allowing emotion to trump logic is the slippery slope that leads to bad hires, or at least hiring the wrong person for the wrong role.  In the end there is a cost to every mistake, and hiring brings real cost.

Fortunately the case of Charlie Weis is a shinning example of what one bad hire can cost an organization, or in his case several organizations.  Roughly $30 million in very real dollars.  That does not even begin to consider the opportunity costs, additional revenue streams, lost potential dollars, turnover, morale, the impact on other coaches, players, staff, programs and the myriad of other factors that one bad hire can have on an overall organization.  Charlie Weis, through no fault of his own, parlayed a brief period of success into not one, but two bad hiring decisions, bad contract negotiations, and above all illustrates the classic pitfall of “falling in love” with the hot candidate.

Notre Dame has been paying Charlie Weis since 2009 to not coach, and will continue to do so through 2016.  Kansas made the same mistake and is also paying him not to coach.  Incredible, yet not uncommon.  Guaranteed contracts are amazing things.  Most of us will not find ourselves in a position to be granting guaranteed contracts to public figures, but anyone who makes hiring decisions does find themselves responsible to organizations, coworkers, families and individuals where a bad hire does incur real costs.

Hiring is both an emotional and quantitative process.  Allowing emotion to trump data is a dangerous proposition, and when one finds themselves chasing what was, of feeling the pressure to make a splash, wanting to hire “the hot candidate”, or “really liking someone” owes it to everyone involved to take a moment and really reflect.  What is it the job demands, what are the day-to-day behaviors, the skills required, the outcomes desired and matrix of success, and only then decide if the person truly fits those needs.  Hiring managers should always heed the lesson of Charlie Weis.

In defense of Charlie Weis, while he might not be the best head coach, he just might be the greatest salesman…ever.  Convincing multiple organizations to pay you almost $30 million NOT to do something takes an incredible skill set, or at the very least one very savvy agent.

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Peyton Manning and Picking the Right Job

Like a lot of folks, was not able to escape the Peyton Manning touchdown record hype Sunday night.  And like the total pro that he is, Peyton delivered.  Breaking and then setting a new record in front of a national television audience.  Not a bad nights work.  Peyton Manning…always a professional, never any issues in public or private, by all accounts an all around good guy, not to mention a pretty inspiring story, returning to the top of his game after major surgery.  All of that said, Peyton Manning has reminded us of another lesson that goes largely unnoticed, but is of immense value to anyone who is trying to manage their career, choose wisely.

Peyton has been smart enough to choose where he works not based on money, but rather where he will have the best circumstances for success. He picks his work place based on culture, organization, leadership, coworkers, and environment.  When it is stripped down to the core, Peyton Manning sets himself up to succeed.  That is wisdom.  Sure, he makes a ton of dough wherever he has chosen to play, but he has never absolutely maximized his earning potential, at least in the realm of football.  There is no question he could demand and get top dollar from any team, yet he has never parlayed his success into a bidding war.  He realizes, and this is easy to do when making millions, that success will generate more income beyond just the “starting salary”.

It is a common theme in business, income maximization.  We fully support capitalism and are all about everyone making as much as possible.  That said, it is often the top reason we hear when someone is debating making a career change, or when they are debating offers.  However, where the disconnect comes in is when compensation drives the decision on what job to take, what company to join, what industry to be in, or what offer to accept or decline.  It is certainly important, but it is not the only issue.  Sure, it is easy to look at Peyton Manning and think “but he is making millions”.  Move the decimal point to the left and the issues become the same for him as they are for any of us.

One maxim we have realized over the years in this business, compensation rises in direct proportion to success.  People that are really good at their jobs tend to make, well more than their peers.  And success is directly proportional to happiness.  People that are happy with their job, their company, their industry, their teammates, leadership, corporate culture and environment, are almost always the most successful.  Find the place where you are set up to succeed, and the money will follow.

Peyton Manning has enjoyed an enormous amount of success on the football field.  That success has made him a wealthy man.  His income has been made on the field, but it has also been significantly enhanced by off field ventures.  Peyton’s wisdom is in how he has set himself up for success.  He chose his university, stayed with the Colts for years, and ultimately chose the Broncos because each of those organizations offered him the best chances for success.  And with that success has come a ton of money, both on and off the field.  Smart dude that Peyton Manning.

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