The new CEO and understanding the company culture

So you have recently joined a company as the new CEO (or President/GM). The vision is clear and you know the direction to take. But this won’t be possible unless you get the entire company behind you. If there is any reluctance to change or to accept new leadership, you won’t get very far. As the new commander, you need to make sure you will get support and help from everyone below you.

Understanding the culture

While you might have a general understanding of the company culture, there is no better tool than to just ask around and get your own idea on the matter. Take the time to sit down with the employees and simply ask them questions about themselves, the Company. Here is a simple list:

  • Three words that would describe you:
  • What do you like about your job?
  • What don’t you like about your job?
  • Where do you see yourself two years from now?
  • Three words that would describes Company:
  • What should never change at Company?
  • What needs the most improvement at Company?

Not only this will help you get a better picture of some of the problems that the Company has but also to extract the core essence of the Company – as well as getting to know more your employees. Of course, this could take a lot of time depending of how many employees you are managing but at least begin with the leaders, senior managers and key employees. Ultimately, I believe that the CEO needs to meet with each and everyone of its employees either thru one to one, group meetings or company all hands.

Leaders are not always the one we think

Let’s not confuse seniority with leadership. If you just joined the business, it is easy for you to know how long each employee has been with the Company. But determining who are the up and coming leaders is a different story. First step is to ask managers that are already in place but I also believe that the new guy can bring a lot of fresh insight into the picture. And the only way I know to find out if by watching potential leaders in how they are working and interacting on a daily basis; but to also sit down with them.

Don’t just talk, listen

Many executives like the sound of their voice, and would never refuse an opportunity to speak in front of an audience. But listening is a whole different can of beans. Listening requires that you shut up (only to ask a few questions in order to get specific information) and let the others express themselves and share their thoughts. A CEO that knows how to listen (and learn) is an amazing tool for a Company; starting by understanding the Company culture.

Always treat your employees exactly as you want them to treat your best customers

- Stephen R. Covey

Too many entrepreneurs will take great care of their key customer but will often negligent in regards to their employees. What does not make sense is that you can’t actually serve your customers well without your team. So as much as you worry when a customer is not happy or are afraid that he might purchase your competitor’s product – you should do the same with your employees.

Are my employees happy and motivated?
Don’t just do a survey, make sure that each and every employee are happy and motivated about the work they are doing for your company. Just like you have account managers for your esteemed customers, you need “employee” managers. These managers need to be both your middle management as well as investing in HR management (yes HR is not just for hiring and firing people).

Maximize employee retention
Again, we worry about customer retention and we need to do the same with our staff. We should know exactly why someone leaves and go to work for someone else. Each departure can send a message to the market about your business. Regular 1:1 employee meetings are important just like you have regular customer calls and meetings.

Move at the speed of your “customers”
Would you refuse to sell to a customer because he wants to buy to quickly? Would you be happy if you would lose customers because your sales process is too complex and long for them? Of course not. This also applies to your hiring process. You need to move at the speed (within reason of course) of your employees and not let a lengthy process make you lose top talent. Its a sellers market right now and key employees won’t hang around for you to make up your mind about hiring them.

Bottom line, look at each of your current and potential employees as a customer base that you need to cater to. Of course, you’re still the boss but caring and authority can successfully co-exist.

Get the best out of your employees

Too many times, I have seen companies with significant inefficiencies, disengaged employees and high turnovers.  Here are some of my personal tools that I use to get the best out of my teams. To begin, I believe that everybody needs to learn and you have a responsibility to support and coach him or her in making them better – both personally and professionally. You need to take the time to listen to what drives and motivates them. Provide constant feedback on what is working and what needs improvement. I believe that if you provide the right environment, an employee should have a pretty good picture of themselves and how they are doing.

How you need to manage someone all depends on where they are in their learning curve of becoming autonomous. Ever notice that after a few months, most employees will have a little down turn or a slump. We often classify this as the end of the honeymoon period. Unless you bring back that people to the right level of motivation, you just entered a slow process of seeing this employee being less and less involved and valuable for the company. As a manager, you need to continuously monitor the evolution of your staff and support them accordingly. The one size fits all does not work. This is what is called Situational Leadership.

Directing is often the de facto style of any entrepreneur when it comes to managing people. We think that’s how we can get the best of everyone and the only way to make sure they execute as planned. But there is a limit on the number of people we can manage this way. Also as people gain experience in your business, they need to get more responsibilities and autonomy. If you stay stuck in a directing mode, you often see your most talented and senior people leave for “another offer they could not refuse”. Leaving you clueless on how to tap in to your talented resources. Of course, directing is needed with new employees as they need to be oriented, work with them in prioritizing their tasks; define their goals and objectives.  Directing done the right way allows you to teach and show the ropes to your employee. Providing feedback and doing regular checks are key elements of a good “director”.

Coaching is the next level of management style that is of course quite time consuming but is a required step nonetheless. This is where you explore the true potential of an employee, clarify what the person has to do, sharing feedback on how this person can improve and of course encourage and give them praise when needed. Being a good coach is hard work but the benefits are enormous – if you begin doing it well, you will be surprised how much more you will get from your talented resources.

How many times have you heard that one employee has complained that he feels he is not supported in his work? Ever wonder why? Without the coaching stage, we do not build a trusted relationship where our employees will come and see us when they need support. Also, some managers will have a tendency to take over when a problem is brought to their attention – the employees needs to be helped in find solutions together (listening and collaboration, facilitating, problem solving) and they need immediate feedback when they are taking decisions – whether they have done right or wrong. They need to understand what has worked and what needs to be done differently.

Once you have succeeded in coaching and supporting, you can move to delegation. You can only delegate when someone feels they are trusted. Otherwise they will only try to please you and will not really make the right decisions. Delegates also mean that you properly empower them. Giving a new responsibility to someone without the tools to succeed is guaranteed failure. Also delegating does not mean that you cannot challenge them – actually you need to be more challenging than we often think. Out of a challenge comes out better plans and decisions – it should be perceived as a positive thing …

Finally, the biggest tool to get the most of your employees is communication, communication, and communication. I find that we make the common mistake of assuming that everyone knows how to communicate – where it is the direct opposite, starting with ourselves … Whenever I see that someone is not executing as I am expecting, I begin to challenge myself about my ability to communicate. Was I clear with my goals and objectives? Where the requirements well defined? Perception is reality and unless we understand someone else’s perception we cannot make ourselves well understood. Avoid the “did you do your job well” debate and focus instead on “where the objectives clear and well understood”. You will better engage your employees in the process and get them to work with you in making things better.

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