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Blog: The Business of Management
 

July 2nd, 2009

A Few Fireworks for July Fourth: Jerks in Hiding, SHRM Attendance, United Meltdown

I’ve been busy with the SHRM conference in New Orleans this past week, so here are a few leftover July Fourth fireworks for you to ponder over the long holiday weekend:

• Good fallout from the recession—workplace jerks have gone into hiding. I don’t know if I believe this entirely, but Joe Queenan made this point in this week’s Wall Street Journal, and it is an intriguing one. Here’s the gist of his argument:

“Jerks are annoying, but they aren’t stupid,” he writes. “They know that first-class nitwits make mouth-watering targets for human resource officers with layoff quotas. The office jerk has not disappeared. He is merely hiding in the hills. One day, he will come down from the mountains and wreak havoc again.”

And, Queenan feels that the jerks-in-hiding dynamic is actually one of the really good things coming out of the economic downturn.

“The grim specter of the return of the office jerk is perhaps the only reason some of us wish this recession goes on for a while,” he writes. “At least that way, some of the more odious office jerks will have a chance to get run over by a truck or start writing a blog. The solitary blogger is unquestionably a jerk, but a self-employed jerk is a threat to no one.”

Hmmm … I think I may have encountered a couple of these solitary blogger/jerks at SHRM in New Orleans. You know who you are. And yes, I’m with Queenan that the self-employed jerk is a good thing for workplace harmony everywhere.

• Prospects for SHRM San Diego 2010—it will New Orleans deja vu all over again. I predicted many months ago that events like SHRM’s big annual conference were likely to see up to a 50 percent drop in attendees this year given the tough economy, and although I hate to say it, my forecasting was right on the money. (Shows you what a pricey MBA can do, I guess.)

So, here’s an early prediction for SHRM 2010 in San Diego next June: Don’t bet on attendance to be any better than 2009 in New Orleans. In fact, it may actually be a little bit worse.

Why do I think this? Overriding Reason No. 1 is because we will soon be going into the budget season for businesses and organizations planning for 2010, and given the lackluster unemployment numbers that came out today, it is clear that we aren’t going to be out of the woods with this recession for a while.

This means that companies will continue to hold tight on discretionary travel for events like the SHRM conference for another year, at least.

Overriding Reason No. 2 is that SHRM 2010 is in San Diego.

This bugs the hell out of us West Coasters, but people living east of Denver get all worked up about long trips to the Pacific Time Zone. This is more perception than reality, of course, but my educated guess is that there will be a lot of would-be SHRM attendees who will opt out simply because they think San Diego is just too far to travel to.

Of course, the SHRM pooh-bahs who plan this big annual event may be able to have some impact on San Diego attendance if they heed some of the big lessons from New Orleans as it applies to speakers, but like all things with SHRM, I’m not holding my breath.

 • “Workplace From Hell” story, July Fourth edition. If there is one workplace you don’t want to work at today it is United Airlines, where they had a computer meltdown at Chicago O’Hare International Airport.

Now, I used to be a mega-frequent flier on United, but their service and customer experience has absolutely gone in the toilet the last few years. I don’t fly them much anymore, so I can’t say this with 100 percent certainty, but my guess is that today—leading into a long holiday weekend with a major computer glitch at its biggest hub—is a day that neither United workers nor customers will soon forget. Great fireworks for a happy Independence Day, indeed.

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June 30th, 2009

SHRM’s Speaker Lineup: Better to Be Lucky AND Good

I mentioned this briefly in my latest Last Word column from here in New Orleans, but really, SHRM hit the right mark with its speaker lineup at this year’s annual conference. SHRM was both good AND lucky.

First, the lucky: Everyone lucked out when former NBC anchor Tom Brokaw had to bail out of the conference for a reporting trip to Afghanistan (no beignets in Kabul, I’m afraid), and that opened the door for former General Electric CEO Jack Welch to step right in.

This isn’t a slam on Brokaw, but rather, an acknowledgment that the Society for Human Resource Management’s big-money opening-session speakers have traditionally been long on star power but short on business acumen, or advice specific to human resource professionals. I’ve said this before but it bears repeating: As much as I believe that Brokaw would have had some interesting things to say, his keynote would probably have followed the pattern set by Queen Noor, Bill Cosby, Lance Armstrong, Colin Powell and Sidney Poitier. They were interesting in the broad sense, but completely and totally divorced from anything specific that HR faces.

Jack Welch changed all of that, of course, and I would be shocked if he doesn’t set the standard for all SHRM Sunday speakers for years to come. A pox on SHRM’s house if the people who program this mega-event don’t hear the message from their membership on this, loud and clear. Once they’ve seen and heard the bark of Neutron Jack, they won’t willingly go back to the sweet stylings of Queen Noor.

As I also noted recently, the other top-line speakers were equally impressive. I didn’t hear Earl Graves Sr., the founder and publisher of Black Enterprise magazine, on Monday, but that’s only because I’ve had 30 years of hearing publishers jabber in my ear. I couldn’t voluntarily submit to listening to yet another one, although I heard that Graves spent a lot of time talking about the legacy of HR in the civil rights struggle. I’ll bet it was pretty interesting.

Tuesday’s speaker was Harvard Business School professor John Kotter, and although I have heard him many times before, I forgot some of the good stuff—like his account of entrepreneur Mary Kay Ash winning over somewhat snooty Harvard MBA students with her business smarts and ability to read an audience.

 Like Welch, Kotter was pragmatic, although a little broader in his material. Still, hearing about leadership and change from a guy who has written 17 books on the subject (when does he find time to teach?) is something HR people really need.

I’m going to miss Wednesday speaker Lee Woodruff (author of best-seller In an Instant); I’ll be back at Workforce Management world headquarters in California. But the choice of Woodruff reinforces my point that this has been one of the strongest overall SHRM speaker lineups in years. And with Tuesday night’s musical guest, Sheryl Crow, the best musical choice in quite some time too. (Sorry, Hall & Oates.)

So here’s the big question: Will SHRM’s brain trust figure out that they made some good choices this year, but also lucked out with Jack Welch? Will they heed what everyone is saying here in New Orleans and tailor the Sunday speaker to the audience, or will they revert back to the old ways next year in San Diego?

I am praying for the former, but fearing the latter.
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June 28th, 2009

Jack Welch Does SHRM

When I heard that former General Electric CEO Jack Welch had been chosen to replace former NBC anchorman Tom Brokaw as the opening General Session speaker at SHRM’s 61st Annual Conference & Exposition in New Orleans, I wrote that it was an inspired choice because it was “so different from keynotes given over the past few years by Queen Noor, Bill Cosby, Lance Armstrong, Colin Powell and Sidney Poitier: interesting in the broad sense, but completely and totally divorced from anything specific that HR faces.”

Say what you will about Jack Welch, but he ALWAYS has a lot to say about HR.

To that end, Welch gave some of his great management and business insights to SHRM attendees in a question-and-answer session with Claire Shipman of ABC News. He was provocative, funny, a bit earthy and generally entertaining. And as someone who has heard him talk on numerous occasions, I can tell you that Welch didn’t just lean on what he has said so many times before.

One of his key points: Trust is an essential quality for all human resources professionals, and that means both trust going down to employees (they need to trust that you’re helping them) and coming down from your boss (who needs to also trust in what you are doing to manage the workforce). Welch believes that the best HR people exhibit pastor-parent behavior: They keep confidences (like a pastor) but can also tell it straight (like Mom or Dad always could).

One interesting moment came when Welch asked the audience members to raise their hands if the HR leader in their organization had equal status to the company’s CFO. Only a few of hands went up, and Welch said that this is proof that HR still must do more to get the respect of their organization—and that more organizations need to push for HR-CFO equality.

Welch also said that holding on to top talent is going to be a bigger challenge because “what you hear is, ‘I want to get the hell out of corporate America.’ ” More workers, he said, are opting to become entrepreneurs in the wake of the huge number of layoffs and corporate downsizing. “HR needs to challenge the organization to be more exciting and more accessible,” Welch added, “because people just don’t trust corporate America.”

Overall, Jack Welch delivered an upbeat HR pep talk here in New Orleans, and his presentation was the most focused and HR-specific opening speech of any I have heard in the past half-dozen SHRM conferences. I didn’t agree with everything he said—for example, I don’t buy his argument that women must make a decision between having children and getting a high-level executive position—but then again, I never agree with everything anyone ever says.

One last thing: There was also probably more written about this SHRM speech than any other in the history of the organization. I had a hard time keeping up with the tsunami of HR “tweets” and blog posts flowing live from the ballroom at the Morial Convention Center, where Welch was speaking.

To paraphrase Winston Churchill: Never have so many written so much, so quickly, about so (relatively) little. As much as I like Jack Welch, the social-media flood to get out his speech was overkill, and probably a sign of the times. I don’t think we’ll be able to shake it anytime soon.
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June 25th, 2009

Remembering Custer on ‘Bad Management Day’

This may seem a little odd, but in my book, we should all celebrate June 25 as “Bad Management Day,” a day when we ponder all the terrible management decisions made each year by so many overpaid, puffed-up egomaniacs like former Chrysler head Bob Nardelli and current Tribune CEO (and foul-mouthed journalist hater) Sam Zell.

Why June 25? Well, it’s because one of the worst management decisions of all time was made back on June 25, 1876, by one of the most puffed-up egomaniacal executives of all time: Lt. Col. George Armstrong Custer, who made a fateful decision that day to engage more than 2,000 Sioux and Cheyenne warriors with only about 210 members of the 7th U.S. Cavalry along the Little Bighorn River in southeastern Montana.

Of such terrible management decisions is history made. So it was for Custer, who paid for his bad decisions with his life—and the lives of his men—in a battle now remembered as the Battle of the Little Bighorn, or “Custer’s Last Stand.”

How bad was Custer’s management decision-making that day?

Let us count the ways:

1. He wouldn’t listen to others: Custer was told to hold off on any attack and wait for reinforcements that were being led by Brig. Gen. Alfred Terry, but impatience got the better of him and pushed Custer to act. Terry and his reinforcements arrived one day after the battle, on June 27.

 2. He didn’t have proper respect for his competition: Custer was guilty of hubris, just like so many modern executives. He grossly underestimated the number of Indian warriors facing him, downplayed their talents and failed to understand the technological advantage the competition had. While Custer’s troops were generally armed with single-shot Springfield rifles, the Indians mostly had repeating rifles. A little less ego might have helped Custer to better respect what he was up against.

3. He focused on the wrong issue: Custer’s focus wasn’t on fighting and defeating the Indians who were itching to fight him at the Little Bighorn. His misguided concern was that he needed to trap them and prevent their escape. That’s why he split his forces into three parts, diluting his overall strength. The other two units of the 7th Cavalry, led by Capt. Frederick Benteen and Maj. Marcus Reno, survived a fierce two-day fight that ended when Terry’s reinforcements arrived.

4. He was badly outmanaged: Custer was overmatched by Indian leader Sitting Bull, who lured him into a fight on his schedule, in a place of his choosing, with a much superior force. And Sitting Bull had an able field lieutenant in Crazy Horse, who executed his leader’s plans to perfection.

5. He had incredibly bad luck: Benjamin Franklin said that luck is when preparation and opportunity meet, and that is certainly true for Sitting Bull at the Little Bighorn. The flip side is that Custer had the misfortune of deciding to engage the largest single concentration of Native American warriors ever assembled on the North American continent with an undersized and outgunned force that he stupidly split into three parts.

That’s not just bad decision-making, but also terribly bad luck.

With a couple of better management decisions and a couple of changed elements, perhaps Custer would have survived the Battle of the Little Bighorn. History would be very different had that happened.

That’s what we should keep in mind today, on Bad Management Day. Sometimes, in business and in life, there are only a couple of decisions separating glorious success and unmitigated disaster.

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June 24th, 2009

Countdown to SHRM, or Why HR Will Have a Hot Time in New Orleans

It’s T-minus four days to the Society for Human Resource Management’s annual conference in New Orleans, and all I can think about is how brutally hot it’s going to be down on the bayou when things kick off Sunday.

How hot, you may ask? Here’s what the New Orleans Times-Picayune says: It will be street-melting hot.

According to the newspaper, “The list of local thoroughfares erupting under the searing heat continues to grow, [and] a busy section of Interstate 10 in eastern New Orleans between Read Boulevard and Bullard Avenue buckled Tuesday afternoon. In Algiers, much-traveled Gen. DeGaulle Drive near Carlisle Court popped apart, damaging cars and detouring traffic after expansion joints could no longer contain the expanding panels of concrete.”

It’s got to be pretty hot to buckle roads, and worst of all, it doesn’t look to improve anytime soon.

“A ridge of upper level high pressure has become centered farther west over the southern plains, but the extended period of very hot weather will continue today [Wednesday], with a highs that could climb above 100, the weather service said,” according to another Times-Picayune story.

“Temperatures [in New Orleans] will be in the mid-90s Thursday and through the weekend, but high heat indices may reach dangerous levels each day.”

There are a lot of great things to do in New Orleans, as I noted in my Last Word column from this week’s Workforce Management SHRM 2009 Conference Planning Guide, but it’s possible that the heat and humidity may actually prompt HR professionals to sit through a lot more sessions and conference activities inside the air-conditioned Morial Convention Center.

Regardless of what the attendees do, Workforce Management will be covering the 61st annual SHRM Conference & Exposition at http://www.workforce.com/, with daily e-mail news blasts and with a big conference wrap-up next week in Workforce Week.

As for me, I’ll be sweating away in New Orleans and writing a daily Last Word column, blogging and even tweeting on Twitter (I’m at http://twitter.com/johnhollon).

If you can’t make it to SHRM, or perhaps have just decided to stay home and stay cool instead, check our site for the latest conference developments from the Big Easy. And don’t hesitate to drop me a note, if you have questions or comments, at jhollon@workforce.com.

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