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SENIOR MANAGEMENT'S RELATIONSHIP WITH EMPLOYEES

More executives can talk the talk—but walking the walk matters most to employees.

It's no secret that the effectiveness of most organizations emulates from the quality and focus of its senior leaders, starting with the organization's CEO. As such, it is critical for senior leadership of an organization to be visible and openly “walk the talk” as to what's most important for everyone to focus on and why. This requires an active, visible role among the employee population. In fact, “upper management visibility” and “concern for employees” have a near perfect correlation in research on employee engagement.

The relationship between upper management and employees is also critical to drive the mission and strategies of the organization. I once heard Jeff Immelt make a public presentation when he was CEO of General Electric. Someone asked him, “In your position as the CEO of a major corporation, how do you get everyone moving in the same direction?” Mr. Immelt responded, “Well, I'll tell you how to NOT do it. You can't announce the company is going to be an ISO9000-certified supplier and then go into your office for six months to then emerge and ask ‘How's that ISO9000 certification coming?’ because it won't be happening. For those things that are most important for the business, you have to get on the horse and ride it.”

This chapter will show examples of what active senior management and visibility look like in organizations today.

When he was CEO of Ford Motor Company, Alan Mulally had all members of his executive team each invite two employees to their executive meetings. This both encouraged transparency and helped everyone to be on their best behavior as well.

You have to be good with people. Get the best people, make sure they are properly motivated, and give them a lot of freedom to make good things and make mistakes.

—SIR RICHARD BRANSON, FOUNDER AND CHAIRMAN, THE VIRGIN GROUP

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On most Friday afternoons at Coinbase in San Francisco, California, CEO Brian Armstrong convenes an informal meeting in the company cafeteria. He encourages employees to drop by to raise an issue or ask a question about any part of the business.

Elon Musk, founder and CEO of SpaceX, regularly sends encouraging emails and gives inspiring speeches to his employees. He has also invited famous people such as George Takei and Jeremy Edberg to address his workforce.

Whenever possible, Doug Herbert, president of Herbert Construction Company in Metro Atlanta stops into the new employee orientation to briefly talk with new employees, thanks them for joining the company, and shares the three main behaviors they can do to be successful at our company:

  1. Be productive. If they are asked to get lumber from the truck, bring back five pieces in one trip instead of making five trips.
  2. Keep learning. Primarily unskilled and inexperienced, they need to learn what we do and why. Then they can take on more responsibility, become more valuable, and make more money.
  3. Be safe. Ask for help when they need it (such as when lifting heavy items). Watch out for the safety of coworkers.

If employees have questions, issues, or suggestions, Herbert encourages them to come talk with him. “When they see the president of the company thanks them for joining the company, and makes himself available to them,” says Herbert, “I think they feel more connected to their new company.”

Michael Tatelbame, vice president of human resources for Villa Healthcare in Skokie, Illinois, reports:

As part of my servant leadership work, I've been very focused on Stephen Covey's speed of trust concept: connect-trust-act. Dr. Covey talks about the importance of taking time to connect with others, to build trust, and then move to action. Leaders (and others) tend to move right to action. At Villa, I've implemented Coffee Talks, a chance for me to explain the concept and live it by connecting with our corporate staff. These Coffee Talks are limited to six corporate staff at a time. Offered monthly, staff voluntarily sign up, but there's a buzz in the office and staff wait and watch for the sign-up sheet each month. We all take time to share at the level each person is most comfortable. I talk about the power of vulnerability, that everyone has a story. As a result, the group realizes how we are more similar than different. Right now, only I am doing these, but soon we will expect our facility leaders to do Coffee Talks with their staff. It's extremely powerful in so many ways.

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When Heather Machado was chair of the nursing recruitment and retention team at Hartford Hospital in Connecticut, they developed an initiative called the Sixty-Day Hire to ensure new nurse hires had a voice with senior leadership early on in their career. An onboarding survey was sent at the sixty-day mark to understand the experiences of new nurses. At the ninety-day mark, the new nurse hires were invited to a breakfast or luncheon in their honor to explore and gather feedback regarding their onboarding experience. “Nursing senior leadership attended to hear feedback, and I served as the facilitator,” says Machado.

We used classical music, a “Welcome” place mat, candles, and balloons to set the tone. Using our ten leadership behaviors and core values, we were able to save twenty-five new nurses within the first year just by listening, acknowledging, and taking action. The result was a 95 percent retention rate the first year for those who attended, and a $1.6 million dollar savings in turnover.

A new graduate nurse program was adopted later. The initiative protocol and results were presented at the state and national level. Our major finding was—relationships matter:

  • The relationship with the direct nurse manager matters.
  • The relationship with the health-care team matters and is important when assimilating into a new environment.
  • Nurses need the resources and tools to do their job.
  • A streamlined orientation specific to their work environment is critical.
  • Improvements were made based on their feedback.

The Granite Group, based in Concord, New Hampshire, has thirty-four locations and nearly 500 employees in six states. “Our competitive advantage is our people and we pride ourselves on having a well-trained and very knowledgeable team,” says Tracie Sponenberg, senior vice president of human resources. “Our business and our culture is relationship driven, and the members of our senior leadership team help foster that relationship-driven culture.”

As part of their normal job responsibilities, senior members are required to regularly visit each branch. This promotes a connection to geographically separated branches and people, and also aids in the trust the team has in senior management—something many organizations struggle with. “In particular, our CEO Bill Condron spends a significant time in the branches,” adds Sponenberg. “He can walk into any of our locations at any time, without flustering any of the team members, and he knows each employees' name, which means a lot to them!”

Matt Dwyer, president of Dwyer Engineering in Leesburg, Virginia, writes:

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I had been trying to get an organized activity started in my company for team building, but I couldn't get it off top dead center. I thought I had good ideas (baseball games, sailing), but they did not seem popular with the staff. They all involved weekends, which is when I had free time, and they all involved activities I like. I could tell that enthusiasm was muted to say the least, and I didn't want to spend $100 to $150 per person (I include families or significant others in company events we do) for something that was perceived as a duty. Another senior staff member took a stab at it, and again, it pretty much went nowhere.

I learned I was guilty of having the best intentions, poorly executed. Like many companies, we planned team-building reward activities that center around the boss's favorite activities (e.g., golf), then scheduled those on a day that is good for the boss but very inconvenient for a number of employees. This becomes an unappreciated burden, even if the boss pays for everything.

We changed course and turned it over to a young employee who was excited about taking charge. By letting the enthusiastic “kids” in the office plan the event, it completely changed everything. We just gave them a budget, included families as an option, asked them to get buy-in from a majority, and retained veto rights (naked mud wrestling is probably not happening). That person met with other employees his age and came up with a list of their own ideas. I nixed one of those ideas, and they surveyed everyone to get a sense of what was the most popular and most inclusive (not always the same thing) using SurveyMonkey. They then used Doodle to find a good date for everyone. They put it all together, and we wound up doing a medieval dinner and joust night on a Friday evening for a few hours. Some staff with small children brought them, and they sat us all together. The staff made a big deal about us. The whole process galvanized the younger staff put in charge of it and we have repeated the process with success multiple times. The last event was at Top Golf, a local semi-indoor golf game that includes dinner and drinks.

It is always ironic when senior staff do something out of a sense of duty and then get annoyed at lack of appreciation. The younger staff, on the other hand, saw it as an opportunity to shine and have fun as well, and we were happy to have them organize it for us; it just took us a while to realize that. They ended up doing things senior management never even considered but turned out to be lots of fun!

Our business is utterly dependent upon getting our 180,000 people aligned and moving forward.

—BRIAN DUNN, CEO, BEST BUY

When Michele Moore, founder and CEO of Southwest Human Capital based in Albuquerque, New Mexico, worked at the CIA, her group chief would regularly invite line-level employees to the C-suite for breakfast. This worked very well because line-level employees were able to get the full focus of the leader before the work day began.

I've also seen this done where just one employee at a time is allowed this visit, and I think that is even better, simply because it allows for more direct dialogue. My favorite thing about this kind of program is that the leaders typically start by feeling as if they are sacrificing to do employees a “favor” and end up prioritizing this time because they learn so much from employees about what is going on within the company. It really maintains those open lines of communication that are so important for strategic alignment and morale.

At Northeast Alabama Regional Medical Center (RMC), based in Anniston, Alabama, with three hospitals in Anniston and Jacksonville, Alabama, senior management is doing several good things to better engage employees, reports Don Stuckey, a consultant working for the company.

Louis Bass, CEO of RMC, has a meeting once a month with all middle managers. At each meeting he invites one or a group of staff employees to the meeting to recognize for outstanding performance. How does he know whom to recognize? He gets input from “Dear CEO” boxes throughout the hospital, and he also makes rounds regularly and listens and observes. When he recognizes staff in front of middle management, he brings them to the front of the room, tells their story, and hands them an envelope with a gift card in it. Once a quarter, the executive team has multiple town hall–style meetings where each employee is invited and is informed on what is going on and how the company is doing.

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Strategy and mission are very important at RMC, and there are several ways that employees learn about these. The executive team covers it in an orientation of all new employees. Signs are located in multiple places in the hospital. All employees are rated in their performance review regarding how they have contributed to the goals and live the vision: “To provide state-of-the-art health care with integrity to the people we serve.”

Stuckey created a corporate university—RMC Academy—where midlevel managers are trained on about twenty different topics including engagement, recognition, selection, setting expectations, and so on.

Dale Dauten, author of many great leadership books including The Gifted Boss and The Max Strategy, shares a story about Charlie Hughes, who started the American division of Land Rover.

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Hughes hosted a retreat for all employees to discuss the company's mission, strategy, and vision. Instead of the usual PowerPoint test of mental endurance, he decided to hold a Love the Product Day. He wanted to share with everyone the excitement of off-roading in a Range Rover, so he got his engineers to rent a backhoe and turn an empty field into an off-road test track. That driving experience was so powerful, it lead to the company creating test tracks at dealerships. After all, you want potential customers to have their own falling-in-love experience. Imagine if your company's mission was “To make products so good our customers love them and do the selling for us.”

You might be thinking, “Well, sure, you can have a Love the Product event if you have a consumer product like a Range Rover.” Think again. John Winzeler, CEO of Winzeler Gear, a thriving Chicago-based company that makes plastic parts, mostly for the auto industry, turned gears into something loveable:

  • He commissions gear art.
  • He had a fashion designer create dresses made of gears.
  • He has an art gallery in a gear factory.
  • He's turned gears into key rings and earrings.

That's loving the product, even when it seems unlovable. Whatever it is you sell, you have no excuse. If you can't love the product or the service you have to offer, either make it lovable or find a new place to work.

CASE STUDY: CULTURE BUILDING

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CEO Munjal Shah of Health IQ, a life insurance startup based in Mountain View, California, maintains a personal commitment to three strategies to scale the work culture as his company grows.

  1. Interview job candidates. “The faster a company is scaling, the more the CEO should be involved in hiring to ensure the quality of decisions is not only being maintained but elevated,” says Shah. He interviews 90 percent of the job applicants.
  2. Democratize mentoring with open office hours. “To scale quickly, help people grow professionally,” says Shah, who holds weekly office hours. Anyone in the company can go see him.
  3. Recognize employees daily. Shah notes, “The more recognition you give, the more positive your culture is. Appreciation never depreciates.” Every afternoon the entire Health IQ team—many remotely connected via Skype—has a one-hour meeting to praise people for their accomplishments.

Leadership is all about convincing and motivating a group of people to do things they would not normally do in order to win.

—JOHN BROCK, CHAIRMAN AND CEO, COCA-COLA

At Hireology, a hiring and talent management platform based in Chicago, Illinois, cofounder and CEO Adam Robinson and vice president of business development Kevin Baumgart know that saying things the right way can have big impact on employee development. In Corey Fein's initial position with the company, she had difficulty seeing meaningful results. The company had many metrics associated with her job. When it came to hard metrics like actual sales, the numbers didn't necessarily match her work efforts. After making over 900 calls during the first three weeks on the job, she did not see good results. That's when Adam and Kevin approached her. Fein says, “Instead of blaming me, they said, ‘We're so proud of you for the effort you're putting in every day. We just know that the rest is going to fall into place.’” Their encouragement resulted in her wanting to perform better. She started to see great results within a few weeks after their conversation. Fein has since been promoted six times over a four-year period.

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Treating his employees like family has helped Jeff Anon—founder, president, and CEO of Berryhill Baja Grill, a Mexican restaurant chain based in Houston, Texas—build an energized and productive workforce of more than 250 employees and annual sales of more than $22 million. Says Anon, “We get involved with their families. We support their Little League teams. We go to their weddings. It's a big, extended family that we have.”

At SK Group, a conglomerate of energy, chemical, telecommunications, and trading companies in Seoul, Korea, executives regularly conduct forums with employees to keep them apprised about the company's ongoing successes and challenges, including SK's sales performance and growth.

Jeremiah Simmons, a McDonald's fast-food restaurant franchisee in the borough of Queens in New York City, understands the power of storytelling in inspiring his employees to the highest levels of performance. Says Simmons, “I tell all my crew when they come in that I started the way they started. They know my story. I was the hamburger flipper, the cashier, the guy with the mop.” Simmons started out with McDonald's at age eighteen, doing all the things that entry-level employees do. Less than three years later, he had been promoted to store manager and increased the store's annual sales 44 percent to $3.9 million. Today, Simmons owns two McDonald's restaurants—and he has inspired many employees to follow his own example of dedication and enthusiasm.

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Every Monday, Michael Yormark, president and COO of the Florida Panthers professional football team in Sunrise, Florida, holds a rally for the Panthers staff, and every morning he sends out a good-morning email message welcoming employees to work. Says Yormark, “I remind our staff that I have an open-door policy. And, from an employee's perspective, whether you're an entry-level employee or an employee that's been here for multiple years, you want to be able to feel that you can effect change in a company.”

Chairman and CEO of First Chester County Corporation and First National Bank of Chester County in West Chester, Pennsylvania, John Featherman believes that making his company a fun place to work is a good way to engage his employees. Among other things, Feather-man has been known to ride aboard First National's float in the local Christmas parade—wearing an Elvis jumpsuit. Says Featherman, “I try to be as visible as possible. For example, we hold our executive meetings once a week, and we move them around to different areas of the bank. I'll arrive early and talk with whoever's coming in to get coffee.”

John Tisch, chairman and CEO of Loews Hotels in New York City agreed to appear on the popular TLC cable network television show Now Who's Boss? During the course of four days, he took on a variety of different frontline jobs in the Loews Miami Beach Hotel, including scrubbing bathrooms, cooking in the hotel's kitchen, pushing housekeeping carts, and delivering luggage to guest rooms. As a result of his experience, Tisch made immediate changes within the company, including ordering new uniforms for staff. In addition, Tisch instituted a new program for Loews's senior management team, through which managers make a short rotation into a different department each year. At the end of the rotation, the senior manager conducts a roundtable discussion with department employees to ferret out issues.

After a series of acquisitions, trust in senior management dropped precipitously within a large multinational business unit at Cargill. Mistrust at this agribusiness giant was so serious that it carried over to the business unit's new senior management team. To turn this situation around, the business unit's entire senior management team traveled to each of the unit's locations—including six international locations—to meet face-to-face with employees in small groups and ask the employees what the senior managers could do for them. As a result of this and other actions, employee trust in the senior management team doubled in just eighteen months. According to Cargill organizational effectiveness consultant Sarah Strehl, “They really just put their money where their mouth was. They committed to things and then went and actually did them. That sent a powerful message.”

You can't cut costs when you're sitting there driving your leased Mercedes from your palatial home. You've got to come back down to reality and become part of the troops.

—DAVID FERRARI, PRESIDENT, ARGUS MANAGEMENT

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Keith Whann, CEO and general counsel of Columbus Fair Auto Auction of Columbus, Ohio, has found that one of the best ways to solicit employee ideas is to have lunch with them. Therefore, several times a year Whann and his executive team invite the company's 700 employees to set their work aside for a couple of hours and join them for lunch—and to voice any ideas they might have to improve the way things work. Says Whann, “We've had some of our best ideas come from employees who say, ‘Why do we do it this way?’ ‘Because we've always done it this way.’ ‘Because it would work better if you did it this way.” Employee ideas have helped the company grow to $38.5 million in annual revenues.

After losing more than $2 billion in its US operations in a recent year, new Mitsubishi North America chief executive Hiroshi Harunari believed that one of the first things he needed to do to turn around the company's fortunes was to win back the trust of its dealers. Within his first two months on the job, Harunari personally visited 139 different Mitsubishi dealerships in twenty-nine states with the goal of listening to dealers' concerns. In the year after his arrival, US automobile sales increased 8 percent, and Mitsubishi made a $5 million profit on the operation. Says Hiroshi Harunari, “Visiting a dealer's place of business is like visiting their home.” It shows “we appreciate them.” Says Mike Graeber, who owns a Mitsubishi dealership in San Bernardino, California, “We finally feel like our voices and concerns are going to senior management.”

After being promoted into a position leading the BT network (formerly British Telecom) planning function, a senior manager invited two members of his team—one a manager, and one a front-line worker—to videotape a three-minute interview with him where they are to ask just one question: “What's on your mind, Bob?” The senior manager then says what's topmost on his mind. The video is then distributed to the rest of the organization's employees via regular team meetings, with an open invitation for them to comment via a dedicated space on the company's intranet. The video was so successful that it has become a monthly event. Says Andrea Wyatt-Budd, leader of engagement and internal communication at BT Wholesale:

His sense at the moment is that, from the emails that he gets, he has a much more committed organization. People are having more honest conversations. They're not just telling him good news. And they are getting to grips with his vision and direction much more readily.

At Fortune 500 automobile parts manufacturer Tenneco of Lake Forest, Illinois, a lack of trust—driven in part by high turnover in the top-management ranks—was causing rampant employee dissatisfaction. This situation was turned around when Tenneco's top-management team began to speak frankly with line employees, rebuilding the bridges of trust. As a result of this initiative, more than 80 percent of the company's employees believe the company is on the right track.

We try very consciously to eliminate any differentiation between management and everybody else. That's the reason we don't have any assigned parking places, no executive dining rooms. Everybody wears the same colored hard hat. Green is the color you wear. No gold hats for the president.

—KEN IVERSON, CEO, NUCOR

Kim Ki-myung, former CEO of Nasan Group, a fabric manufacturer in Seoul, Korea (the company has since been renamed In The F Company), made a point of learning employee names and then using them when speaking with the individuals. In an interview with the Korea Herald, Kim said:

The founder of a business gets to a point where his or her personal growth is much more involved with allowing others in the company to grow so that they can give meaning to their own lives.

—PAUL HAWKEN, CEO, SMITH & HAWKEN

I know around 250 of the company's 391 employees by name, and I make sure I call them by their names at every opportunity. I think that helps uplift an employee's spirit, and helps them perform better.

Nick Read, CEO of the Asia-Pacific and Middle East region of mobile telecommunications manufacturer and service provider Vodafone Group of Newbury, United Kingdom, sends a personal video update message to his 10,000-plus employees in more than 350 stores and offices each month. The employees can view or listen to the message on their mobile phones or on their computers via the company intranet.

Automobile manufacturer Chrysler has instituted For Our Information sessions to help connect frontline employees with the company's senior leadership team. These sessions, which usually last an hour, are held monthly and put different members of the company's executive committee together with a cross-section of about sixty employees from throughout the organization. Each session opens with a five-minute briefing by the company officer—the latest company news, what's on his mind, and what's got him worried. The balance of the meeting is devoted to a frank question-and-answer session.

At Sun Microsystems, the manufacturer of computer network servers, workstations, and storage systems in Santa Clara, California, the company's chairman, Scott McNealy, used a special forum (WSUN) on Sun's intranet to solicit employee opinions and feedback and to maintain an ongoing discussion with employees on the topics of corporate goals and direction. President and CEO Jonathan Schwartz uses his personal blog to engage employees on the company's technology directions. Business unit heads and executive vice presidents are each tasked with holding six town hall–style meetings with their employees each year, wherever they may be located around the globe. By reaching out in these and other ways, Sun's top management team helps build passion and excitement among employees and their families.

To help employees feel more connected with the company's top-management team, General Motors vice chairman Bob Lutz started the FastLane Blog, a place for him to post his thoughts about the company, its products, and employees. Says GM's director of communication research Kathy Collins, “It's a way for an employee on the shop floor on the other side of the world to feel connected to our leadership on a more personal level.”

John Featherman, chairman and CEO of First Chester County Corp. and First National Bank of Chester County in West Chester, Pennsylvania, sponsors a Chairman's Birthday Breakfast each month at a local country club. It is an informal venue for him to engage employees where they talk about work as well as how each person is doing personally. A result: Annual revenues increased to more than $68 million.

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At Northern Kentucky University (NKU) in Highland Heights, Kentucky, president James Votruba makes a point of personally meeting each and every employee soon after they are hired. According to Votruba, he tells the new employees that he and the university are “devoted to advancing the dreams of both our campus and our community.” He goes on to say, “I quickly add that I know that they have dreams as well and that I hope that NKU can support their dreams whatever they may be.” No doubt James Votruba's proactive approach helped the school earn recognition recently as a Best Place to Work Award winner for Greater Cincinnati. Said one employee of the university, “NKU is truly an exceptional organization with engaged leaders trying to do things right while focusing on the right things to do.”

If I were going to give advice to a new CEO, I'd just say there is no substitute for the best team, so do what it takes to get one.

—KEVIN SHARER, CEO, AMGEN

General Motors (GM), one of the world's bestselling automobile manufacturers, headquartered in Detroit, Michigan, integrates its senior leadership team into the creation of an engagement culture by way of its Go Fast program. Based on General Electric's WorkOut model, the Go Fast program encourages employees at multiple levels of the organization to engage in small group discussions to solve problems, reduce redundancy, eliminate waste, and streamline decision-making. Every GM executive is required to sponsor at least two Go Fast sessions every year. Anyone in the organization can initiate a Go Fast session—from frontline employee to senior executive—if there is a problem that the company needs to address. Go Fast sessions generally last two days and involve ten to twelve employees. According to Kathy Collins, GM's director of communications research, Go Fast provides opportunities for problem-solving to enhance business results. It also shows workers that company leaders value and want everyone to proactively work together to develop innovative ideas.

Global chairman and CEO James Turley of tax and accounting firm Ernst & Young encourages employees to take their vacations by sending an annual voicemail message to them. In this message, Turley outlines his family's vacation plans for the coming summer, and he emphasizes the importance of taking vacations.

Paul Spiegelman, CEO of Dallas-based Beryl Corporation, hand-writes birthday, get-well, and congratulatory notes to his employees—sometimes as many as 300 a month! Although turnover in Beryl Corporation's industry (call centers for the health care industry) is historically high, the company has only one-fourth the industry average for turnover while being a leader in profit and growth.

The CEO at Quicken Loans sends hand-signed birthday cards to all team members and sends birthday cards and gift certificates to employees' children on their birthdays—despite the size of the increasing employee population.

During stressful times, executives at the Cigna Group, the insurance giant in Hartford, Connecticut, wheel coffee carts throughout their offices, providing welcome refreshments to employees on the front line. They find that employees often choose this form of engagement to raise and suggest solutions to current work issues.

I produce the show. I think I am a strategic person. But how do I get people to grab the strategy, to get it under their skin, to get a feel for it, to get it? I can't write it in a manual. I must make a show of it. I motivate people through the show.

—JAN CARLZON, CEO, SAS

When Herb Kelleher was CEO of Southwest Airlines, he sent copies of complimentary letters from passengers along with a personal memo to the employee involved.

When Nance Dicciani directed Honeywell's Specialty Materials unit, she hosted Coffee with Nance, informal meetings with employees in their offices. Dicciani used the time to briefly address business performance and encouraged people to ask questions. On a grander scale, she treated employees who were a few organizational levels below her to Skip-Level box luncheons. She inviting as many as 224 employees but not their managers. Dicciani says:

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These were very well received. It put me in touch with the people in the organization in a way I could not be otherwise. But if there is follow up, you do indeed have to follow up.

Regular weekly senior leadership meetings at Microsoft begin with a segment CEO Nadella calls “Researcher of the Amazing,” which highlight a success story from a work team. For example, engineers at Microsoft Turkey recently presented a new app that reads books aloud for visually impaired people. During these meetings, which sometimes last up to seven hours, Nadella often asks for employee opinions and gives encouraging feedback. The sessions clearly demonstrate Nadella's team approach for the company culture.

Former Mattel CEO Robert Eckert lunched with ten to fifteen employees in an informal roundtable to exchange ideas. Workers were chosen by HR to be a cross-section of levels and departments and all employees were encouraged to email Eckert with their ideas.

Tony Ling, vice president of HR at Internet portal Dianping, China's largest restaurant review website, describes a program to retain technical talent: “Zhang Tao [CEO] and I dedicate a lot of time to spend with staff. If you join Dianping, you will meet both of us within three months of joining. In addition, we are cognizant of the three-year itch,” he says, highlighting the common occurrence of employees leaving a company three years after their hire dates. Ling and Tao personally reconnect with employees at luncheons, where employees ask questions or raise issues on any matter. Ling finds that people typically ask about company strategy, health, compensation, and personal development—factors directly related to engagement and turnover. The meeting gives leaders a chance to remind people about their personal connection to Dianping's mission and strategy, and why the work relationship matters to them.

Once people trust management, know they're responsible, and are given the training, it's astonishing what they can do for customers and, ultimately, for the stakeholders.

—JAMES HENDERSON, CEO, CUMMINS ENGINE COMPANY

Captain Michael Abrashoff, commander of the USS Benfold, a carrier with one of the lowest levels of reenlistment in the Navy, was charged with turning around the morale of the crew. Captain Abrashoff wanted to do away with the perception of special privileges onboard his ship. On his first day, as he stood in the long buffet line for his lunch, one of his officers walked over to him and pointed out that as captain, he was eligible to wait in the much shorter line for officers (clearly visible to all). Abrashoff said, “No thank you, I'll wait in this line with everyone else.” After a few uncomfortable minutes, those in the “officer line” began to leave their privileged position and join the longer buffet line. This powerful metaphor helped Abrashoff break down class barriers.

Once when ENSR International Corporation CEO Bob Weber was traveling with a more junior member of the team, at the hotel he was told that he was eligible for a suite. He declined, saying he didn't need one, but asked the hotel clerk to give it to the most junior team member traveling with him. The story took on a life of its own back at the office in Chelmsford, Massachusetts.

Emily Weiss, founder of Glossier, the New York–based beauty and skincare company, met a recent college graduate who was looking for a job. “Come on in and interview,” she said, and the woman became her assistant. A year later, the woman wanted to work in product development. “She's twenty-two and never worked in product development,” says Weiss, “but off she went to product development and helped to develop four of our best-selling products. That's the nature of building an inclusive company. When you listen to everyone, you'll find they all have something valuable to say.”

The leader needs to be in touch with the employees and to communicate with them on a daily basis.

—DONALD PETERSEN, FORMER PRESIDENT AND CEO, FORD MOTOR COMPANY

When Malden Mills in Lowell, Massachusetts, burned to the ground, the smart decision would have been to take the $300 million in insurance and retire. Owner Aaron Feuerstein was in his seventies, and other textile manufacturers in the area were leaving New England. But Feuerstein pledged to rebuild the plant and keep all employees on the payroll during reconstruction. A few years later, employees repaid him when the company's performance was suffering. They agreed to avoid overtime work and took a cut in pay.

Danny Wegman, the CEO of Wegmans Food Markets, has chartered jets to fly all new full-timers to Rochester, New York, for a face-to-face welcome and introduction to the company's headquarters staff.

An employee at analytics software company SAS in India had a very supportive interaction with a member of upper management. When he attended the company's annual party, the managing director approached him. The employee said he was afraid, at first, because he had not achieved his objectives. The director told him he valued his work, and reassured him that the company appreciates and invests in people.

Brad Smith, CEO of Intuit, believes in transparency. He posts the unedited version of the board of director's annual review of his performance on the external wall of his office. He also posts a profile of his personality preferences, feedback from other executives, and data on how he uses his time. Because the majority of the company's 8,200 employees will not ever come near his office, Smith sends all the information to each employee—every year. During tax season, he devotes time to answer customer calls alongside frontline employees.

My role is about unleashing what people already have inside them that is maybe suppressed in most work environments.

—TONY HSIEH, CEO, ZAPPOS

When former MGM Grand president Gamal Aziz joined the company, he held open-ended, face-to-face meetings with small groups of workers. Aziz recalls, “I would sit with a combination of people from different departments, and we would have breakfast and talk about whatever was on their minds.”

At North Shore-Long Island Health Systems, CEO Michael Dowling speaks for ninety minutes with newly hired employees who assemble for orientation every Monday at 7:30 a.m. Dowling and members of his executive team also teach employee classes, and Dowling himself leads management instruction.

Campbell Soup's former CEO Doug Conant was known for writing personal notes and pinning them on employees' bulletin boards. He explains, “If I were just sending emails, it would feel gratuitous and automatic. In every note I try to recognize a specific thing.” He ended each day by writing twenty notes to employees and partners. He estimates that he wrote 30,000 notes in his time at Campbell's.

Conant describes himself as a perennial “student of wisdom.” He routinely scours leadership articles for insight into how he might “be just a little bit better tomorrow.” Hundreds of management and leadership books fill his office shelves, making the point that here is a chief executive who values learning.

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John Chambers, president and CEO of Cisco Systems, communicates what's on his mind to all employees via a video blog every quarter. This communication is paired with We Are Cisco, a tool that links all Cisco employees and encourages general interest stories, holiday photos, and so on. It is not unusual for John himself to chime in on a particular subject of interest.

When Paul Levy, CEO of Boston's Beth Israel Deaconess Medical Center, decided to communicate with employees through a blog, his advisors told him not to do it. “What if you have to go back on something you've said?” they asked. “Is it wise to give competitors access to information?” Levy responded, “Any organization that is not leveraging such networks is missing an opportunity.” He has managed to speak to a significant cross-section of his staff in a forum that they have come to love.

Jerry Lenz, general manager of Lenz Entertainment Group recalls the incredible team and energy he experienced working with K-Tel International. The company was in twenty-eight countries throughout the world. During the 1970s and 1980s, they did $200 million in annual revenues, mainly selling music products (LPs, 8-tracks, cassettes, CDs) to retailers such as Sears, Target, Musicland, Woolworths, and so on. Lenz says:

[Company founder] Philip Kieves and his top executives knew everybody and related to everyone on a one-on-one basis. Philip would travel from our Winnipeg office to all company locations and made a point of meeting every new US employee one-on-one. Employees felt empowered because the executives listened to them and asked for input. Instead of hiring limos, our executives were picked up at the airport in a company van, and our driver gave the executives input openly and freely; there was no judging. Great ideas and needed changes can come from anywhere within an organization, and they did at K-Tel. It was like that with Sam Walton, jumping in a semi with the Walmart driver and asking for input—exactly the same street-smart kind of operation. We all had buddies in different departments and there were no dividing lines. Warehouse workers and executives, shoulder to shoulder, day in and day out.

How companies treat employees says worlds about the quality of their management. And quality management usually translates into companies with a long and successful financial story. Whether it is demonstrated through superior benefits, family-friendly policies, safety records, or union relations, a strong record on employee relations is generally an indication of forward-thinking executives thinking creatively about running a business.

—STEVEN LYDENBERY, RESEARCH DIRECTOR, KINDER, LYDENBERG, DOMINI & CO.

CASE STUDY: TWO GREAT SENIOR MOMENTS

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Amy Esry, human resources consultant for Hausmann-Johnson Insurance in Madison, Wisconsin, reports:

My organization is really good when it comes to senior management's relationship with employees. I have two examples, one involves lunches with company executives and one involves community service.

One-to-One Lunch with an Executive

Members of the executive management team take each employee out to lunch, one-on-one, every year. So every year, each employee has one-on-one time with an executive and an opportunity to talk about what is going well, what they'd like to see changed, and to share their career aspirations. Some great feedback and ideas come from these lunches.

We have six people on our executive management team. Each executive will go to lunch, one at a time, with about nine or ten employees. Each executive has nine or ten lunch appointments to make. So pretty much every employee gets to have a one-on-one lunch with an executive each year. We usually do these through the summer. And every year we change the lineup of who is seeing whom, so hopefully, each employee gets to have lunch with a different executive every year. We provide everyone with a list of five or so questions, so employees can prepare, and all of the executives are asking the same thing. We ask what is going well at work and what needs to be improved, and this past year, we asked about recognition and communication. We change the questions a bit each year based on what we think we need to work on or get more insights about as an organization.

Depending upon what an executive hears in any particular lunch, he or she may follow up with HR or a supervisor. The executive management team meets a few times in the summer to share their notes so we can spot trends (if a lot of employees are talking about a particular issue). The executives hold each other accountable because they share the feedback as a group.

Community Service

Every year, we form teams to do United Way Day of Caring projects. We purposefully mix up the teams, so people are working with people from other departments and various levels. So it is very common to see an executive/owner digging in the dirt (literally) side-by-side with a new hire who may be very early in their career. The projects are varied: We've built playgrounds and dog gardens, done yard work for the Humane Society grounds, cleared a hiking trail, cleaned up a garden for an elderly person, helped build a garden at a school, cleaned the interior of a hospice center and at a local domestic abuse shelter, organized clothing and supplies for a local job readiness fair, to name just a few. Teams are usually made up of four to eight people. Most teams include an owner or executive. Projects typically take around three to four hours to complete, and we usually have several dates to choose from, so we don't have everyone out at once. We let employees go on the projects as paid work time. We usually have close to half the company participate in a project. Community service is very important to us, and we have a volunteer coordinator (our marketing person) that helps find opportunities for employees to volunteer throughout the year. As a result of these activities, there is no sense of management versus staff at Hausmann-Johnson. It's just people getting the job done, at work, or on a community project. There is a sense of family and team that transcends title and level. It's how people are treated on a daily basis.

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