A few years ago, when one of Rafi Holtzman’s employees called him from Europe and said she forgot her bright pink suit pants she needed for a trade show she was attending, he went to her house and, not wanting them to get crumpled in his suitcase, carried them by hand on the plane. He got odd looks, but it was just one way the CEO of Luidia Inc., a creator of interactive whiteboard technologies, showed his employee that he cared about her.
Holtzman also drinks his coffee with employees so he can talk to them, and he bought employees expensive ergonomic chairs so they would be comfortable. And when any of his nearly 100 employees have family emergencies, he says he’ll see them when it’s over instead of expecting them to work during the crisis.
“Even if you’re a cold-hearted capitalist, you still want to act like this because it buys you the thing that money can’t buy — it’s the personal responsibility, it’s the self-motivation — salaries will not do that for you,” he says. “Salaries are short-term sugar highs. If people understand you’re there for the long-run … it goes a long way.”
Smart Business spoke with Holtzman about how values affect a company.
What role do values play in an organization?
There are two kinds of motivation in human life — and it’s basically falling into two buckets. One of them is fear and the other one is love. Fear is a great motivator for a short-term burst — if you’re running away from a wild animal or doing a very fast project that you need to do right now and kill yourself to finish it. But if you really want to sustain growth, creativity, teamwork for the long run, then you have to be highly motivated to continue this for the long run, and the only way I know how to do that is personal involvement. I’m using the term love, but it’s a lot more than that. It’s a combination of respect and personal responsibility and taking things really personal.
It helps a lot if you believe in that. You can fake it and do pep talks. A lot of companies will say that people are their strongest assets. But from my experience, not a lot really do mean it on the basic level. If you can really believe in that, you’re a large part of the way there.
How does showing care to employees help the business itself?
You have to go really outside the box to get support that will last for years. Most organizations manage to keep the people they don’t want to keep — we like to keep the people we do want to keep.
Changing employees is bad for you. It’s also hideously expensive. A stabilized company is always good rather than changing employees all the time — this going up and down and the learning curve and the hiring process puts stress on everybody.
How do you hire well the first time so you have a stable company?
Don’t compromise. Wait a bit more and don’t compromise. As a matter of compensation, it’s not always the highest monetary compensation that brings you the best candidate. You really have to see if there’s a fit on the vision both in the day-to-day activity and in the long run. People who fit in with the company values and, at the end of the day, are proud of their work, get significant points over somebody who just thinks of work as work.
What questions do you ask to get a good match?
The top question I ask is, ‘Tell me about the project you are proud of.’ I remember one candidate going, ‘Look, I started this, I made the proposal to the department of defense, I developed the process, I went all the way from idea to actually selling it, and it was a great thing because the company sold a lot of them. What I got from this I got taking ownership from one end to another.’ He had pride of ownership that he did a good product — he was really high on my list.
The other question is, ‘What do you want to do when you grow up?’ You find out a lot about people when they answer this question — there’s only one good answer and that’s I don’t want to grow up. One of them said chocolate taster — that was a good answer.
How to reach: Luidia Inc., (650) 413-7500 or www.e-beam.com
When Michael Fetsko lands a contract to build a train system, it’s not because he is the best salesman in the industry. He gets contracts because he has dedicated himself to driving industry-leading innovation that has helped build Bombardier Transportation’s reputation as one of the best rail transit manufacturers in the world. When Bombardier was awarded the Hartsfield-Jackson Atlanta International Airport job, it was the innovation of Bombardier Transportation and its Systems Division’s automated people mover train system that won them the job at one of the world’s busiest airports.
Bombardier’s Systems Division faces a tough competitive market for their products. Fetsko, vice president of the Americas regions for Bombardier Transportation’s Systems Division, is constantly focused on innovative ideas and ways to stay ahead and on top of his industry.
“Ideas are encouraged, and our company encourages the divisions to do exactly that, to develop the next idea, the next game changer,” Fetsko says. “That philosophy is instilled throughout the company, and I think it is one of the foundations to our success.”
Innovation is ingrained in the roots of Bombardier. Even when Bombardier was just a small snowmobile maker, innovation and entrepreneurship is what led them to where the company is today. The Systems Division saw annual revenue greater than $1.3 billion in 2009, just a slice of Bombardier Transportation’s total annual revenue of more than $10 billion that year.
Here’s how Fetsko’s continuous drive and dedication to leading innovation at Bombardier has helped establish it as an industry leader.
Due to Bombardier’s commitment to being the best at what they do, Fetsko and his team need to always have an ear to the ground about prospective projects. A commitment to excellence and their ability to create strong business relationships help get them in the door.
“When we find out about projects, in this type of business, you really can’t walk into a particular city at the last minute and say, ‘Hey, I’m here to bid on your project,’” Fetsko says. “Our strategic plans take us out five plus years. We are already looking at the cities where we think and know transportation systems will be built. And we are going in and meeting with the decision-makers, the customers, the politicians and really trying to secure our foothold in that particular location. What it comes down to is building the relationships with the right people and making sure the community sees you as a viable player.”
Companies in big industries and companies that face tough competition have to rely on their ability to offer strong products that come with the support of the company from multiple areas. Bombardier is often selected because of its ability to provide the best price and the best value for the customers’ money. Bombardier’s drive for innovation is also a key factor.
“Over the last two years, for us in the Systems Division, (innovation) has become a core part of our workload,” Fetsko says. “We have 100-plus people working on various forms of innovating our products and making them better. For us, it really comes down to trying to stay ahead of the competition. It also impacts cost savings. We are working on product development right now called energy storage. We are trying to push the envelope to try and make our systems faster, more cost-effective, more energy-efficient, more environmentally friendly, and it takes a team of people to do that.”
Innovation is not just a one-off thing. If a company doesn’t work hard and continue to innovate, then it is not an innovative company. Fetsko and the Systems Division work continuously to encourage and drive innovation. Finding ways to innovate and ways for employees to bring new ideas forward are keys to the company’s success.
“It really starts at the group level, the transportation group level, and it gets pushed down through all the divisions,” Fetsko says. “Bombardier has an innovation website where we encourage employees to submit their new ideas. Each idea gets reviewed by a committee and a team, and, of course, not all of them can get implemented but many of them do. They could be simple ideas on how we might be able to save more labor hours to do individual tasks, or they could be ideas on how to create the next big product breakthrough. It’s highly encouraged, and there are a number of mechanisms we have in place for employees to submit their ideas and creativity on how we could better the business.”
Ideas like an innovation website and innovation meetings are smart and fun ways to encourage employees to submit their ideas. Without these mediums for employees to speak what’s on their minds, innovative ideas can go to waste and will only hurt your company. Three years ago, Fetsko even created a full-time position for someone to head up their innovation efforts.
“You’ve got to encourage innovation,” Fetsko says. “Part of that is you have to have people who are dedicated to leading the effort. You can’t just talk about it and hope it’s going to happen. I think that’s one of the reasons that we have been successful. Companies may not want to do it, because it’s an overhead kind of position, but we have found that it more than pays for itself in a lot of the ideas we’ve already implemented and things that we’re doing to better the business and better the product. You’ve got to have a person or a small team of people that are responsible for it and committed to driving it throughout the business.”
At Bombardier, they also have quarterly meetings where the top-level executives from the company’s numerous locations gather for a two-day discussion that is strictly focused on innovation, product development and product improvement.
“You have to look at where you want to go and what you’re trying to strive for your business to achieve,” Fetsko says. “If you want to achieve big things, you’ve got to dream big things, as well. You’ve got to put time into it. You have to run your product improvements like you would a particular project. They all have budgets they have to meet, and they all have schedules they have to meet, and finally, you have to make sure you drive it to completion.
“When we say innovation here, it’s not necessarily the next big breakthrough on a train system. It could be things on how we could manage our business better. It can even be discussions on a particular task and whether we can do it with less people and still accomplish the same thing. Can we get it done on time with the same quality perhaps for a lesser amount of hours? That all translates to cost savings. Innovation relates back to us being able to offer customers a lower price for a product in the future. When we say innovation, it’s more than just product innovation, and that’s why it’s encouraged by everybody. If you have ideas on how to make the business more efficient or how we could improve the business, that’s how we make better products.”
Of course, with any new product or innovative idea, testing has to be done before that idea can be declared innovative and useful to the company and to its customers.
“Some customers are reluctant to be the guinea pig for some things that are new,” Fetsko says. “One thing that we do here very well within our division is our expertise to build a transportation system from the ground up. Integration, testing and commissioning are our core areas of our expertise. When we put something new into a project and the customer says, ‘Yes, I’ll take it,’ from our standpoint, it goes through a rigorous level of internal testing and external testing. We go through rigorous design reviews with our customers, so these types of ideas if they are new and get implemented, really go through a high level of scrutiny.
“Everything has to pass through our safety group as part of our governance. They are the ones that have to give the final blessing that a system is safe to carry passengers. Anything that gets implemented that’s brand new or might get integrated into a system goes through that sequence of testing and conditioning, so both the customer and Bombardier are confident it’s going to work.”
Bombardier uses test tracks to make sure its products are up to the company’s high standards and are tested a second time once the product gets shipped to a customer.
When innovation plays a big part in your company, it is often very difficult for only one person to overlook the entire operation. Fetsko says that he encourages and expects his employees to know how to do their jobs and to be independent enough to make their own decisions.
“My philosophy is to allow for accountability for running your part of the business,” Fetsko says. “I’m not going to step in and tell people what they’re supposed to do on a daily basis and how they’re supposed to go about it. We have levels of governance and reviews that are put in place so that we can review what is going on in every part of the business. The people here are empowered and are expected to run their part of the business. My style is not to micromanage at all, but I will routinely walk around the building and interact with the employees. To them, it really shows a sense of caring and says, ‘Hey, here’s the guy that’s running the business, but he spends a lot of time with the employees.’ Not necessarily telling them what to do — I don’t do that — but rather asking them how I can help and asking them how things are going and really telling them and showing them your appreciation for what they accomplish for us every day.”
Establishing a culture where employees know that they are empowered to do their jobs is critical for a corporate environment that is innovative.
“The one thing you have to focus on is to set up a structure so that people feel empowered to do their work,” Fetsko says. “You have to make sure those parts of your business and leaders of those areas can handle the work and that they’re not too overburdened with trying to manage too much. You verbally and physically have to tell people what you expect from them.
“I’ve got monthly meetings with all the folks on my team. They are very short meetings, face to face, not through e-mail and not through the phone, to really interact on that basis is very important. If they come to me with a problem, I want them to come to me with three solutions or more, as well. I try to tell them, ‘Don’t expect me to solve all your problems.’ You’ll always have the folks that come in and say, ‘Hey, I’ve got a problem, what do you want me to do?’ My response to them is, ‘What do you think we should do?’ Certainly, I could give them my opinion, but I really try to encourage our folks and help them find solutions to their own problems. It comes down to empowering people and telling them that it’s theirs to do, it’s theirs to run. It raises a level of passion and it all translates to results.”
How to reach: Bombardier Transportation, (412) 655-5700 or www.us.bombardier.com
The Fetsko file
vice president, Americas regions
Bombardier Transportation, Systems Division
Education: Bachelor of arts degree and a master of science degree both in environmental sciences, from the University of Virginia; master’s degree in civil and environmental engineering from the University of Pittsburgh
What was your first job out of college, and what did you learn from it?
My first job out of college was working for a company called Ensr, and I worked as a geologist. They were an environmental engineering consulting firm. What I learned was how important it is for projects to meet their deadlines and their goals. I also got a lot of chances to travel and meet with customers.
What is the best piece of business advice you’ve received?
The best advice is the importance of relationships and developing relationships in your business, both with internal customers and external customers, and having that face time with them. People really appreciate that level of interaction versus conversing through phone or e-mail.
If you could choose one person, past or present, to have a conversation with, whom would you speak to and why?
Going back to my athletic days of playing football for the University of Virginia, one person I would really like to have a conversation with would be Lou Holtz. I have read some of his books and I am a fan of his style of leadership and what he has been able to accomplish as a football coach and what he has been able to accomplish with people who have played for him and passing on the values he’s lived by.
If you could have any superpower, what would it be and why?
If I could have a crystal ball and I could see into the future of what’s going to happen, that would probably help, as far as being able to make the right decisions and growing the business.
David Hankin could pass for an entertainment executive as he sits in the courtyard of The Peninsula Beverly Hills hotel. Donning a sleek suit and squinting into the sun, he cracks jokes about which doctor he might portray on TV.
And when you hear his mantra, you’ll really think Hollywood.
“You have to take care of your talent,” he says.
Hankin does come from the entertainment industry, where he gleaned that piece of advice, but today, he serves as CEO of The Alfred E. Mann Foundation for Scientific Research. In fact, that mantra still guides him as he leads research and development of medical devices at the organization, which has produced cochlear implants for the deaf, retinal prostheses for the blind, and the pen-cap-sized device Hankin holds now — an implantable microstimulator that’s battery-powered to stimulate impaired neural and muscular functions.
Some would argue that those plots of intellectual property are a business’s most important assets. But when a moderator of a panel discussion on the topic once made that claim, Hankin was quick to refute it.
“I said, ‘With all due respect, in our business, intellectual property is not the most important asset that we have,’” he says. “‘The most important asset we have is people because that’s where it starts.’ You don’t have intellectual property if you don’t have great people.”
For Hankin, who also serves as president of The Alfred E. Mann Foundation for Biomedical Engineering, it really boils down to that mantra he borrowed from the entertainment world. It’s all about taking care of his 105 employees, who tend to be top decile graduates from prestigious technical schools with years of specialized experience. That caliber of talent presents a double-edged sword.
“The challenges, of course, are that you have to figure out how to channel that creativity and that brilliance so that it’s productive,” he says. “The rewards are spectacular, and you end up with devices like a microstimulator that holds the promise of reanimating paralyzed limbs. From a leadership point of view, it’s really channeling that brilliance and energy that (employees) have.”
Start with skill
Though the Mann Foundation is relatively small, with recent income around $24 million, it competes with giants like Boston Scientific and St. Jude’s.
To stay competitive when it comes to hiring, the foundation recruits heavily across several fields, from electrical and mechanical engineering to biosciences. Hankin keeps tabs on employment news so if a large defense contractor is shedding people because of a canceled program, for example, he reaches out to their human resources manager to connect the dots.
“Anytime a company with sufficient technical prowess is shedding people, we look at who they shed,” he says. “Just because somebody gets axed in this environment doesn’t mean they’re not a great person.”
Because about 80 percent of the positions at the Mann Foundation are technical in nature, Hankin considers technical skill the primary hiring factor.
“It’s a litmus test because, frankly, if you don’t have the right technical acumen, you’re not going to be able to hang in our group,” Hankin says. “If they don’t have the skill level and they can’t sit in meetings and contribute in our organization, then they’re not going to make it.”
Hankin often has prior working relationships with executives he brings in, partly thanks to his recruiting network. Beyond that, he assesses how candidates have proven themselves in the field.
“Some of it is based on past performance: What have they done in their career? What kinds of challenges have they undertaken?” he asks. “I’m not afraid of people who switch careers. Frequently when we see that, we see people who are able to make adjustments and also have to learn about new industries.”
Industry-hopping could also suggest a candidate is a natural learner who would fare well in ever-changing fields like health care and technology.
Use the interview to drill into candidates’ skills, even if that means turning it over to the experts. Hankin gets uncomfortable in interviews with his scientists, because they ask candidates such tough questions.
“It’s not, ‘What do you think your strengths and weaknesses are?’” he says. “They’re asking them how they would solve certain scientific and engineering problems. They want to know more about their approach than whether or not they come to the right answer.”
Give employees leeway
When you’re bringing in such technical people who have spent years specializing in their area, the key is really harvesting their abilities. If you’re like Hankin, you may feel clueless next to your people’s expertise. In that case, get out of their way.
“My management style tends to be more about hiring great people and letting them run, giving them the field,” Hankin says. “I’m not smart enough to micromanage these people, honestly. The technical breadth and diversity among the different technology areas that we have to cover … is staggering. I have to hire great people and really trust them.”
Their skills need the opportunity to shine. Give employees freedom to do what they do best.
“One, you have to have creative, challenging projects for them to work on,” Hankin says. “Two, you have to give people room to make mistakes and fail. We want people to take risks; that’s how we solve problems.”
Creating that safe environment starts with flexibility on your end. When you’re discussing the company’s approach to solving a problem, keep the table open to all ideas. If your employees are technical experts, this isn’t too hard to do because they’re the ones with the knowledge necessary to formulate answers.
“It’s not my role to talk,” says Hankin, who stays quiet during meetings. “If something comes up where there’s a partnership issue, those are things I’ll (talk) about. If there’s a debate on how to design a circuit sufficiently to perform a certain function, I’m probably not going to enter that debate.”
The good thing about this kind of environment is that even if Hankin did enter that debate, his perspective would merit consideration, too. He’s comfortable throwing out a “what if” in a meeting because an initial “Yeah, right” response may give way to, “Let’s try it.”
“We discuss different directions that we might take in addressing a problem,” he says. “We may pursue one or two or three or four avenues of addressing a particular technical problem, any of which may succeed or not. We’re willing to consider multiple paths.
“Maybe 90 percent of the conversation is about different technical approaches: ‘Well, have you tried this? Have you thought about that? I know someone who’s done this.’ This free flow of scientific ideas is something that we promote, and that’s how these kinds of problems get solved. They don’t get solved because some guy is holed up in a cube someplace running experiments.”
Rigorous testing — in many cases, required by national and international guidelines — later reveals the best solution. But to get there, Hankin has to remind people that speaking up is the only way for solutions to surface.
“From a management point of view, we tend to want to understand what the problems are so that we can help try to direct resources to hot problems,” he says. “Because we have a culture where you’re not going to get crushed if you fail, people tend to be more open about things that they’re seeking to solve. One of the things that I always tell people (is), ‘If there’s a problem that exists and I don’t know about it, there’s nothing I can do to help direct resources.’ I look at myself as the remover of roadblocks and also traffic cop of resources. If I can direct resources in the right way in the right place, we can solve almost anything.”
You generate an open discussion by focusing on the collective goal of solving problems. A new employee at The Alfred E. Mann Foundation, who came from a company where people were protective of information, was surprised by his first meeting. Afterward, he asked Hankin if people were usually that open.
“Here, people want to share information because they want to solve their problems,” Hankin told him. “They know there’s other people who have different experiences who come from different industries who have a potential contribution to solve their problem.”
Make your mission relevant
The microstimulator Hankin is pinching between his thumb and forefinger was a much bigger undertaking than its size suggests. It took 10 years to develop — two for the proprietary ceramic case alone. To get there, the foundation debuted at least half a dozen fresh innovations.
How does he keep employees motivated for projects that take that long to complete? Hankin says it’s not a huge hurdle, considering that “psychic value” is inherent with Mann’s mission of, basically, saving lives. When Hankin surveyed employees about their motivation a couple of years ago, they said they were there to help improve human health.
Your company’s mission may not be that mobilizing. But whether you’re saving lives or shipping parts, the key to motivating employees is showing them the relevance of what they do. Making your product or service real to them will keep them engaged for the life of the project — however long that may be.
“Because we take things to human trials, people get to see the effect on people,” Hankin says. “We also bring patients in who’ve experienced the benefit of a device, and we have them talk to our people. So we try to bring our people as close to the patient experience as they can get without having to go to the clinic themselves. This is the whole motivating factor— you get to see the benefit of the device you create.”
To get his employees close to the customer, Hankin will even send employees to watch the company’s devices being implanted through surgery.
The key is keeping that big picture in focus as employees tackle individual tasks. Frequent design reviews give Hankin’s team an opportunity to recap every aspect of a project’s progress and remind everyone about all the parts that must come together.
Getting big-picture buy-in goes back to giving employees challenging projects to work on. If you can pare down your teams to the point where each member carries a significant portion of a project’s weight, you automatically make each piece important. When Hankin came on board in 2007, he trimmed overlaps and “deadwood fat” to make the organization lean and each role relevant.
“Each person’s working on something that’s really meaty,” he says. “It’s not somebody who’s working on a piece of something that they can’t see any relevance to. Everybody in our place understands the relevance of exactly what they’re doing.”
A good leader educates employees about why their jobs matter, but a great leader actively matches up employees with jobs that matter to them personally.
By helping employees see all the necessary parts that make a whole, you’re inevitably unveiling other opportunities where their skills could make a difference. Have the flexibility to let them jump on different projects.
With five or six projects running at once, Hankin can reassign employees who have completed one task or just need a change.
“I try not to pigeonhole people,” he says. “If people want to try different things — subject, of course, to meeting our schedules and our budgets — we try to enable people to work on different projects. … We make adjustments from a career development focus. I may say, ‘Look, next available opportunity to do that, we’ll do that,’ but I keep my promises.”
That effort keeps employees engaged so they’ll make your company successful. By taking care of his talent, Hankin keeps his most valuable resources engaged through high-risk, high-reward projects with long, challenging life cycles.
“If somebody is working with you and they are unhappy and disgruntled, you’re not going to get their best work,” he says. “Part of the challenge is to get people to align with what their desires are.”
How to reach: The Alfred E. Mann Foundation for Scientific Research, (661) 702-6700 or www.aemf.org
Creating a brand-focused organization shifts it from a commodity to a position of brand preference, which equates to higher marketplace value. Making the brand the central focus of the organization helps employees understand what is on brand and what is not. This is essentially why brand development and brand commitment is a top-down initiative and is the CEO’s job.
It is all about the customer experience
In their book titled “Satisfaction,” authors Chris Denove and James D. Power IV offer research and case studies that prove the impact a great customer experience has on organizations. From their studies, I have developed a simple exercise to help companies determine the impact that improving the customer experience can have on an organization. It is eye-opening. To access that exercise, go to www.brandproblog.com/customer-experience.
Here’s the bottom line: If you’re like most businesses, the majority of your customers are relatively happy, but they have no attachment to your organization. Most companies have a small customer base that is so committed, they would never leave. According to the studies by J.D. Power and Associates, relatively happy customers have a loyalty rate of 40 percent versus committed customers, which have a 70 percent loyalty rate. It speaks volumes when you think about your customer attrition rate and the cost of customer acquisition. If you increased customer loyalty, how would that impact company sales?
As said best by Denove and Power, “Every company says that customer satisfaction is a paramount goal. … In truth, talk is cheap, particularly when it comes to customer satisfaction. … The leaders, like Lexus, Starbucks, Volvo, Nordstrom’s, BMW and Ritz Carlton have made the commitment that goes beyond conversation, below the surface and into actual daily mechanics of doing business.”
Building the culture
Employees need to feel a sense of pride, ownership and personal connection with your company, its brand and its customers. When this occurs, there is energy, excitement, empathy, passion, purpose and conviction. Employees who interface with customers play the lead role in living the brand, but all employees are members of the team and have a role in delivering the brand experience. The goal is to have every person aligned in thinking, speaking and behaving in ways that create the experience and the lasting impact that your brand promises.
There are three primary stages that employees must surpass in becoming advocates of the brand: hearing it, believing it and living it. This translates into observing from you that it is important and why it is important. As leaders, it is our job to keep the brand top-of-mind and to weave it into the fabric of our daily operating procedures. Identify barriers that prevent employees from delivering the brand promise. If you’re not sure what those are, just ask your employees.
Making the commitment
Obviously, there is a lot of work to creating a brand culture and keeping it alive within an organization. So where do you start? I suggest you start with your commitment to embrace the brand as an essential asset of your organization and then become the champion of the brand as you drive it through your organization. Building on and leveraging the brand over the next three to five years should be a part of your strategic plan. Tie the brand to specific financial goals and commit publicly to the brand promise.
To operationalize a brand requires a major shift in how the company is run. And, the most important element of bringing a brand-driven culture to life within your organization is your employees. It will require an investment in resources and training, but there is no telling the impact it can have on the future success of your company.
An employee at Triad Retail Media had an idea about a new social networking tool for the company to consider. He didn’t need to fight through five layers of management to get the attention of CEO Greg Murtagh. He just e-mailed Murtagh directly. Before the end of that day, Murtagh had already read the proposal, researched the new tool online, agreed that it was a good idea and assigned someone to begin work on the project.
Murtagh founded Triad in 2004 but has continued to grow his company, which sells advertising to online retailers, by 282 percent in the past three years.
Greg Murtagh spoke with Smart Business about how fast-growth companies can keep pace with industry changes by facilitating a culture of innovation and open communication.
Encourage entrepreneurial thinking. People shoot me e-mails from five levels below me, and I think it’s great. That’s change around here. If you unencumber people and you take away the handcuffs and you take away the barriers and the walls … and say, ‘Hey, if you have a good idea let’s hear about it,’ — if you have that kind of open environment, things tend to happen a lot faster. If you are a person who just likes to sit in your office and close the door and say, ‘Hey, I hope it keeps going,’ and be visionary but not be close to what’s going on, you are in trouble. Around here, people like coming to work, because it’s a dynamic place to work. It’s an open place to work. Anybody can knock on anybody’s door at any time.
Give management enough rope. You have to let other people take the rope and trust that the people you’ve hired are going to do what you need them to do. A lot of times, people don’t do that. They try to do too much. They make every single decision, and as a result, the company slows down to a snail’s pace, because everything has to go through the person who is clogging the pipes. Even though you hire a great staff that you like and trust and you think are making the right decisions, and you are delegating, you have to let go a little bit. I’m not an IT person. I’m a sales and marketing person, but I live in an Internet world. There are lots of technical things that I am completely ignorant about. I have to hire people, especially in the IT area, who are telling me to make investments that cost millions of dollars and are giving me recommendations as to why we need that. I have to trust people and that they are telling me the right thing.
Reward innovation. We have a whole series of monetary awards called the Star Awards, where we give money to people every year to come up with ideas in certain areas in all different categories, such as $10,000 to the team that brings the best new idea to market during the year or $10,000 to the team that came up with most creative idea to save the company or grow revenue during the year. We pay people and reward people for being innovative. If you have clear communication and you have compensation that’s aligned with what you want to occur, then people will line up against your vision and make it happen.
Place bets on money makers. A lot of people see shiny new things and basically pick up the phone and tell their organizations, ‘We have to do that! We have to do that!’ And as a result, they waste a lot of time, a lot of energy and a lot of money on things that they shouldn’t have spent time on. In the Internet space, there are lots of shiny objects. You have to step back and look at that stuff with a very cold eye, and ask yourself, ‘Is it really going to be a transformational thing?’ There’s social. There’s mobile. There’s Facebook. There’s Twitter. There’s video. There are 18 different things that we should be thinking about, planning for and doing. You have to pick and choose your shots. I never put a dollar into anything that I don’t expect to make money. If things don’t work out, usually within six months, it’s not going to work out. If something is a success, it usually takes off.
How to reach: Triad Retail Media, (813) 286-6586 or www.triadretail.com