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The ABCs
Alphabets oh baby now…
Imagine Michael Jackson at eight singing his heart out to this chorus. It’s one of the first rock songs I remember loving. What could connect this Michael Jackson song with a real business breakthrough? Well, that’s the ABCs, dumbass.
Ds & Fs will sink your company
Management’s ranking of employees is controversial. Force ranking is something that many large publicly traded companies do. I do not support these methodologies. Nor do I support strategies like Jack Welch’s purportedly advocating for the removal of the bottom 10% of GE employees annually. What I suggest and wholeheartedly support is that you only have truly outstanding and amazing employees in your company. Now there is a radical thought. Before we continue, let me set some parameters. I consider work to be performance oriented. The companies I know play on a very competitive playing field. Many factors affect the long-term success of a business entity. Achieving success is complex. However, I think we can agree that the quality of employees within an organization affects the performance of that organization.
CEOs, executives and managers have direct control over who works in the organization. Management controls who is allowed to enter the sandbox. As business people, we do not directly control terrorist plots, the economy, our competition, taxes, health care plans, or national events. But even with unions, executives and managers ultimately control who works in the company. Since this is an area that we as business managers and executives control, we should make the most of it and use the “human part” to improve our company’s performance advantage. This is the point. The “ABC” process I’m about to tell you about is designed to give your company a people and performance advantage.
What did you think?
If you are an executive director or manager with direct reports, and you have employees who would get D’s and F’s in the school’s grading system, then I can’t help you. If you tolerate this quality of employees in your company, then to me you are not responding appropriately to the type of business environment we currently have to deal with, let alone thrive. You also don’t understand the impact these lowly employees (and the managers who tolerate them) have on the rest of your organization. Not only do they contribute to the company’s drag, low-ranking employees have a huge negative impact on your big and superstar employees. If you have more than a few employees in the D and F categories, sell the company, exit the company and do something to save yourself. Your forecast (and your company’s forecast) is bleak at best. In the next minute you will fall off a very high cliff. Good luck! You will need it and start praying… So the following process will only be useful if you don’t have D and F employees in your company.
How to raise an entire company
In addition, you need to have this point of view: in order for your company to thrive, you need to have really great employees throughout the organization. If you have this attitude, then this information will be of great value. I read the article “A New Game Plan for C Players” by Beth Axelrod, Helen Handfield-Jones and Ed Michaels published in the Harvard Business Review. These authors have influenced my work. They agreed and helped me crystallize the concepts I already had. The article also reinforced things I was seeing with my clients. The general idea is that by cutting out mediocrity, you improve your company. By raising the bottom of the company, you automatically raise the top. What these articles offered was an easy way for me to work with management teams that were beginning to take control of one of their most important business assets: people. By assets I don’t mean to objectify people – but maximizing resources is one of the possibilities of business leadership.
Down with mediocrity
Many companies have mediocre employees. These companies may include your competition. However, the list of mediocre players should not include your company, department, or business organization. That’s the point; Not required. In my work, I have seen companies where no one was mediocre. Mediocrity was not tolerated. And because these clients had higher standards, they performed better in the market. Let me clarify what I mean by using the following definition: From now on, mediocre employees are defined as “C” players. These employees go through the motions, are marginal in their performance, and lack any positive qualities they bring to the workplace. They exist, occupy space and simply do their job, somehow. Do you know someone like this? Do they work in your company? Take a piece of paper and make a list of those people. You’ll need it later. The test for “C-ness” is that if one of these C-level employees came to you as their manager and said they were quitting, you would be relieved. The reason for your relief is not Alka Sletzer. That is, you are sure that you could better recruit a new employee from the open market. As employees, we all have warts and problems. However, with C-Players, if you had the choice as a manager, you would choose the market over continuing the relationship. This is one of the classic features of C-Player.
Most Valuable Players
B-players are described as excellent employees, true keepers and absolutely worth their weight. They are aligned with what the organization does. As corporate citizens, they care deeply about their internal and external customers. Although they probably haven’t been promoted, that’s okay because they’re doing great where they are. A-players have all the attributes of B-players. They also have the talent, desire and ability to be promotional. They are interested in professional growth and development. These players, with development, can be moved to management or to another department or to lead an organization in another country.
Warning! Trap
A pitfall to this process that I’ve often seen is that managers want shades of gray. They want to grade employees as C+ or B-. They want to make excuses and dance around the problem. It is important to stick to A, B and C bins. No minuses or pluses are allowed in this process. Do not allow gray color. People have to make choices and deal with the consequences. You either do it as a credible employee or you don’t. Managers must be responsible for who they allow to play in their sandbox.
Open Assessments
From time to time with small and medium-sized clients, and certainly during strategic planning, every manager stands in front of the room. They are then asked to rank one by one – their direct reports. They are asked to rank each of their employees as an A, B or C-player. To prepare for this process, the assigned articles have already been read. Everyone understands the process. After the manager has flagged the employee and explained why they are ranked that way. Others at the table can then give their views. You can only give your opinion about an employee if you have actual work experience with that person. This is not about hearsay and gossip. This process is taken seriously, as actions will be taken based on assessments. I have seen very positive results come from the dialogue managers have with the leadership team about their key employees. Managers receive direct feedback on how others see and perceive their direct reports. In addition, problems that have been under the surface can be brought to light and actions can be devised to solve these problems. With client after client, I’ve seen mediocrity recognized and managers supported in addressing it. I have seen managers grow and develop when they know that one of their key roles is to have great employees around them. If they don’t have great employees, then their colleagues and leadership group expect them to do something about it. Implementing this process requires both leadership and teamwork. You need to work with a team that is truly committed to being part of a high-performing organization (and working at that level yourself). People participating in this process must have the sophistication of adults. For example, absolute confidentiality is necessary to use this approach. What happens in the boardroom, stays in the boardroom, and all participants need to be very cool with this. Taking this discussion out of context and sharing it with anyone outside the room is an incendiary insult to me.
A plan for C-players
Once an employee has been identified as a C-Player. there can be three resolutions: 1. They can put themselves in a new role where their skill set is thought to allow them to be a B-player. 2. A manager can take an employee for development and train him to become a B-player. 3. It might be decided that the only alternative at this point is to move on and replace the employee. The decision is then how to act in an ethical and honorable way. The question I will ask is: Does the employee know their job is on the line? Managers will often whisper and say either “that’s what they think” or that the employee “should know”. The standard I set is higher: Have you told the employee that your job is on the line and there are these performance issues that need to be addressed? If the issues are not on the table with the employee, then it must be resolved. The first order of business is to make sure that the employee knows that his job is at stake. This is an ethical matter. It is neither right nor honorable to surprise employees about this type of issue. The manager then has two months to solve the problem and has a B-player in this position. A time limit is important to establish urgency.
Getting Clear
Sometimes an employee who is a C-Player is labeled a “sacred cow” by management; that for whatever historical reasons, management decided to put up with the employee’s mediocrity and let her go. The employee may be trained, but it is also understood that even if the employee remains as a C-Player, he will retain his job with the company. I’ve seen this done primarily with older workers who have a long history with the company and who (in the past) have been real contributors. For whatever reason – sometimes technical, sometimes due to age – but whatever the reason, the employee is unable to contribute at a higher level. For special reasons, this employee is given the status of a sacred cow. The good thing about this solution is that the entire management team now knows about it.
Coming Up Short
Another positive feature of the A, B and C process is that it can be used to identify A-players. In small and medium-sized companies, there is often a lack of A-players. This shortcoming can slow down the company’s growth. This situation is discussed in “Everything is in the middle”. Once an A-player is identified, their manager is often tasked with creating a training and development program with this employee. They will then present that plan at the next meeting. If this process reveals an absence of A-players, then that problem needs to be addressed. A common solution is to start hiring people with the intention of them being A-players and developing some real potential for growth within the company.
What next
- Whenever you engage in this process, it is very important to hum Michael Jackson’s ABC song to yourself. That’s really the secret to success here.
- Use this process with the staff around you. Address any C-players you may have. Remember the options; train them, put them in a new role, or ethically and honorably move on to better options. Until you have all the B- and A-players around you, don’t force it on others.
- Introduce the process to your organization by having managers read the recommended article: “A New Game Plan for C Players” by Beth Axelrod, Helen Handfield-Jones, and Ed Michaels.
- Do the group process and identify the A- and C-players who need action.
- Follow up with the group in two months to make sure the issues are really being resolved.
So there you have it: a methodology guaranteed to drive mediocrity out of your organization. Let us know your results. We look forward to your response.
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