From Hot Water to Hot Results - From Liability to Profitability

BY Mike Foti

"Let's sue the jerks," says Betty Big-Award (attorney for the law firm Dewey, Cheatem & Howe) to Danny Disgruntled (your ex-employee).
Betty, the firm's most profitable lawyer is not worried about winning or losing the case, but she sees a substantial settlement in her future! "When I get through with them, you and I will be sitting pretty," Betty says to Danny.

Have you or your company ever been on the receiving end (or should I say the paying end) of this type of conversation? Most managers and business owners have! How do you minimize hot water and maximize hot results? How do you go from liability to profitability? The keys are creating systems and the environment for success; a place where responsibilities and results outweigh the focus on rules and rights. Why should you create such a place and how do you do it? Consider two steps:

Step 1: Set Up Your Business for Hot Results
Step 2: Rising Above Hot Water

Step 1: Set Up Your Business for Hot Results

In business today the established mantra is the "need for speed." However the question is does being speedy, impatient, or impulsive lead to "hot results" or "hot water?" You need to slow down and become crystal-clear about values and expectations, the creation and implementation of systems that make success repeatable and about developing a winning and fun environment. Here are some hot ideas to fuel results:

• The Hiring Process: Don't treat hiring like dating - The excitement of someone new - a new employee, a new date - can come crashing down the morning after. Why did I do this? How could I have missed those warts? The hiring process should not be a dating carousel, constantly spinning around with dollars spitting out. Slow down and get clear about your expectations:

A. What specific results do you expect from this position? Are these results written down with timetables for achievement?

B. What would the candidate need to know Day 1 to ensure success? What could a candidate learn through training, experience, and mentoring to "evolve" into the position?

C. What are the commonly held values of your business? How does your candidate fit with these values?

D. What are your candidate's background, achievements, and uniqueness? Are they capable of integrating their personal accomplishments into a team atmosphere?

E. What does your candidate say in his or her resume and in interviews? Do their comments match up with a professional background check and input from references? Past success and integrity are an indication of future results!

• A Service Oriented Leadership Environment: Are you "on the pedestal" or "serving as the footstool?" - Leaders enable people and teams to get results - they serve customers and employees. To maximize results, ask someone (who is not afraid to "tell it like it is") to grade you on the following items. Then consider how these answers impact your liability costs and profitability results.

A. Do you "absorb the spotlight" (take all the credit) or "reflect the spotlight" (give the credit to others)?

B. Do you treat people who leave the business as "treasurers" (ongoing connections to learn from and grow with) or "traitors" (they have to be evil to have left your business)?

C. Does your vision and communication "inspire the best" or "conspire the worst" in others? Are others comfortable coming to you with a problem, or are they sweeping issues under the rug?

• Results are Required: Only the best will do - Business is not a democracy - it should be meritocracy (the best move you forward). A winning environment can include "nice people," but not at the expense of sub-standard results! Do you have nice people who just aren't delivering anymore? For hot results either (a) identify expectations and timetables for improved results, (b) reposition this employee to better fit their skills and talents or (c) help them find a better match with another employer.

Step 2: Rising Above Hot Water

If you didn't take the time to follow a meticulous hiring process or create the service-oriented leadership environment where results are required, you will probably end up needing Step 2 far too often (note: even if you do Step 1 exceedingly well you may still end up in Step 2 through difficult circumstances and/or the actions of others). Step 2 generally requires help (this will mean cash out of your pocket), a logical and coherent plan, and reevaluating your processes, systems, and people!

• Getting Help: "Randy Reality" vs. "Betty Big-Award" - Lets face it, Betty knows how the game is played (the workmen's compensation system, wage and hour laws, sexual harassment etc.) - you generally, don't! You need "Randy Reality" on your side. Who is "Randy?" "Randy" can take the form of a lawyer, consultant, or association that specializes in workplace issues. Randy also knows how the game is played (i.e. how to minimize your short and long term liability costs), has your best interests in mind, and is not afraid to give you a dose of reality. Yes, you think you are right. The claim, the suit, is bogus. Unfortunately you are not the judge, jury, or administrator of the system you are unwillingly dealing with! Get "Randy's" professional help and then listen to his advice.

• Developing the Plan: Preventing road rage by slamming the brakes or hitting the gas - Effective "hot water resolution" requires you not overreacting - spazzing out first, asking questions later. When confronted with an emotional employment issue feel the signals in your body (clenched fist, tight throat, knot in the stomach). Remember hot water requires cool action. If you are emotional remove yourself before you blow your cork and elevate the drama (and probably your future costs). Use these steps to develop a plan:

A. Listen well. Repeat what you heard.

B. Determine if you need to (1) deal with the situation immediately (hitting the gas) or (2) if meeting on another day would be best (slamming the brakes) after your fact gathering has been done.

C. Estimate the "cost of principles" vs. the "cost of settlement." Sometimes fighting on principles and values is best, other times it can be stubborn financial stupidity. Get "Randy's" insight when you are too emotionally invested.

D. Set a date for follow up.

• Improving the Process: "Better luck next time" involves some R & R (Reflection & Reevaluation) - In these situations you can view yourself as the victim or reflect on what lessons can be learned, what processes can be improved. Consider how the best companies handle these challenges. How do your processes match up? How can you get better QUICK to shift from liability to profitability?

Conclusion

They say "an ounce of prevention is worth a pound of cure." I'm here to tell you prevention is not enough! Hot results demand a methodical, consistent, proactive approach to creating the systems and environment to win in the competitive marketplace. Challenge yourself to not get on a first name basis with Betty Big-Award. Get clear up-front on the people you need, lead with integrity and service, and then don't forget to cross your fingers for a little good luck!

If you would like to have Mike speak to your group consider the following programs:
"Increasing Flow and Igniting Fire" - Winning Advice for a Tough Economy
"Leading for Entrepreneurial Success"
"Design/ Build Leadership - End of the Winner Takes All"
"Seeing the Forest from the Trees"

If you want to get Mike's insights on this topic in one on one sessions click here.

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Mike Foti is Chief Executive Officer of Cleveland Glass Block (a Northcoast 99 recipient for best employers in Northeast Ohio and a Community Pillar Award winner for community service) and President of Leadership Builders. Mike is a national speaker, writer, and consultant who helps individuals and companies get results through people. To ask Mike how he might help you, or to receive his free tips and leadership articles, call 216-531-6085 or visit his web site at www.leadershipbuilders.com.