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Archive for December 7th, 2007

More Surprised Economists

Why do the so-called experts consistently error on the doom-and-gloom side of economic prediction?

The latest numbers via CNNMoney.com’s Jobs grow more than expected:

Employers added fewer workers to U.S. payrolls in November, according to a closely-watched government reading on labor market strength released Friday that still came in a bit stronger than Wall Street expectations.

Folks, you ever notice they always expect worse numbers?  Note how they open the article with a negative comment even though the number is 24,000 jobs higher than expectations.  The number will be revised later and the economy is cooling off after a torrid pace during the summer.  But it is still strong.

Velvet Hammer Management

I’ve recently been looking at creativity in selling since it seems to be a topic of discussion with greater frequency.  The younger generations are flattening the long-standing hierarchal structures that have been a hallmark of corporate structure.  Part of this change has to be attributed to the creative freedom wielded by so many Gen Y employees.  Managing creative types can be a real challenge as Jack Welch discusses in this article:

But what a mistake if you lead creative people from your heart and stop there. Managing creative people also requires—it even demands—a measure of authority. Nothing heavy-handed, of course. You don’t want your resident out-of-the-box thinkers running for the exits. With their fresh ideas and unique perspectives, they can be, and often are, the reason for breakthrough products and new ways of working, and even the impetus for whole new businesses. Still, creative people must know that boundaries and values exist, and they have to respect them.

This approach is synonymous with effective sales management also.  I recently talked to a new sales manager at one of our customers.  His comment about managing salespeople, “I’ve never encountered anything quite like this.”

Welch continues by zeroing in on specific positions (my editing):

Now, we realize that the velvet hammer part of the approach we recommend is somewhat counter to the conventional wisdom about managing creatives, which runs that writers, editors, artists, software designers, engineers, research scientists, and even a few particularly inventive investment bankers should be left alone. They’re different from you and me, the thinking goes: deeper, more mysteriously wired, more fragile. Treat them like worker bees, and they sting. Treat them like hallowed Yodas, and their wisdom flows.

Regardless, true creatives do seem to shut down when squeezed into normal strictures, and good managers need to be wary of that.

“Treat them like hallowed Yodas” – that is excellent, isn’t it?  Full disclosure – I was not familiar with the term “strictures” – something that closely restrains or limits.  I thought it was a typo for structures.  Anyway, salespeople have a similar composition with maybe less fragility.  Yet we have encountered many who have shut down due to overarching strictures (I had to do that).

The last word goes to Mr. Welch:

Which leaves leaders in a unique, but not irresolvable, bind. To win in the marketplace, leaders absolutely must respect the individuality of creative people. They are different. But if you want your organization to cohere and thrive, you must make sure they keep that difference within bounds. Yes, some creatives might balk; some might even walk. But remember, you are indeed the boss of them—and everyone else. For the sake of the organization, you need to act that way.

Rationalizing Rejected Offers

From BusinessWeek.com’s When The Candidate Says No:

Then, disaster strikes. The candidate says no. In the blink of an eye, the story is rewritten. He’s self-important; she doesn’t know what she’s passing up. We didn’t land the candidate, so the candidate is flawed. Ever heard this story before? Of course—it’s one of Aesop’s most famous fables, The Fox and the Grapes. Once the fox realized the grapes were out of reach, he decided they were sour grapes, anyway. Who needs ’em?

It’s laughable to see this story played out over and over, but it has a sobering side. When we invest time and energy in selling a candidate on our organization and the deal doesn’t happen, there is a strong urge to make the candidate the bad guy. But that’s ridiculous—we were excited about having this person on our team, right up until the moment we got the brush-off. After the fact, we can’t rewrite history just because we lost the deal.

Why not just accept that not all candidates accept the job offers we extend? Companies will always have to contend with a certain rate of rejection. But if we blame the candidate for failing to be enchanted with our generosity, we lose the opportunity to spot flaws in our hiring processes.

Well, there certainly is a whole lotta truth in those paragraphs.  The first flaw we would look for – is your process moving along in a timely manner?  More times than not, we see unneeded delays introduced by hiring managers who do not dedicate the time to consistently moving candidates through the hiring process.