Archive

Blog

The Mortgage, the Noodles, and the Airline

By Stevie Ray

First published in the Business Journal Newspapers

December, 2020

“I am so sorry. We have been experiencing an extremely high volume of business.” Those were the first words I heard from a mortgage company I am using to refinance properties that I own. I had contacted them in early October, seeking to take advantage of dropping interest rates. It was now December, with no closing in sight. This meant I would pay another month of the original mortgage, costing me a lot of money. I sent an email to my broker, detailing how much capital their mistake had cost me. He kicked the matter up to his boss, who assigned someone else to resolve the issue. This person apologized, offered an excuse for the delay, and promised to finish the refinance quickly. After another missed deadline, I contacted my original broker again. This time I said that, since their company caused the delay, they should discount their fee to accommodate for my loss. He agreed. I am still waiting for a closing date.

 

Jump now to a take-out noodle restaurant. My wife and I ordered online for pick-up at the store. When we get home, my wife’s dish was not what she ordered. She called the restaurant, and the young man said, “Oh yeah. Sorry, we’ve been really busy. Your order is right here if you want to come and pick it up.” She drove back to the restaurant, where they handed her the correct order. Nothing else.

What do a mortgage company, a noodle shop, and most businesses, have in common? A keen focus on attracting new customers, and a poor job of keeping them. Millions of dollars are wasted on advertising to get customers in the door because front-line staff are not trained in how to keep them.

When Gordon Bethune took over Continental Airlines in the early ‘90s, the company was the worst in the airline industry. Two trips to bankruptcy court, a revolving door of CEOs, lagging sales, and appalling passenger satisfaction ratings meant he was in for a long, hard job getting the company back on track (yes, I used a train metaphor for an airline). Within one year, the company was not only profitable, but rated as the top in the airline industry.

Bethune made some smart business decisions, such as cancelling unprofitable routes, but the change he made that caused the greatest impact (and got the greatest push-back from his peers), was to trust the front-line staff to handle customer service issues, and to give them the power to do whatever it took to please the customer. If a passenger had a bad experience, whoever had contact with that person—flight attendant, gate attendant, ticket clerk—not only had permission to make things right, but they also had the tools to do so—whether it was an upgrade to first class, a free meal, or free airline miles. Other business leaders told Bethune that front-line staff could not be trusted to handle delicate customer service issues, and “they would give away the farm.” To the contrary, staff at Continental respected the need for the company to make a profit. In fact, they discovered that most upset passengers were satisfied with a free ice cream cone from the food court. Just like a free rice-cereal treat from the noodle ship would have been enough for my wife. Tiny costs can reap huge payoffs.

When I speak with front-line staff at workshops or conferences about customer service issues they say, “It’s not our fault,” and “What are we supposed to do about it?” These attitudes point to a failing of training, as well as management. The fix involves simple rules.

Rule 1: Whoever deals with a customer must be empowered to fix the problem.

Rule 2: Never give the customer a reason or excuse for your failure.

Rule 3: Never let a mistake go by without offering something to make up for it. Create a list of possible amends for staff to refer to when needed.

Rule 4: If the customer must tell you how to make things right, you have failed at your job, and you should not expect to see that customer again.

Trust your front-line staff to solve customer problems. Otherwise, you will spend a lot more money to find new patrons.

 

Stevie Ray is a nationally recognized corporate speaker and trainer, helping companies improve communication skills, customer service, leadership, and team management.  He can be reached at www.stevierays.org or stevie@stevierays.org.

Be Creative, Debate

Now that the pandemic is settling in for a longer run than expected, many businesses are having to shift from let’s wait this out to what do we do now? Some organizations have the option of simply delivering their existing goods through different channels—drive-thru service or patio dining for restaurants—but if your company is more complicated than burgers and fries, it is time to get serious about creative options. That led me to dust off some old tips about brainstorming.

 

Most brainstorming sessions are at best, unproductive or, at worst, exercises in frustration and futility. The fault lies in following out-of-dates methods. Individuals have been shown to be every bit as capable as teams at developing creative, workable solutions. So, why have teams brainstorm in the first place? The answer is, groups can create a higher volume of ideas in the same period of time, and when a group creates a solution together, there is greater buy-in; the idea is implemented with more enthusiasm than if the solution is handed down from on high.

The goal of brainstorming is twofold; a high volume of ideas, and creative breadth. Creativity is measured by how far away from the norm an idea is. The best way to achieve both conditions might surprise you; debate. Most people have been taught that brainstorming is only possible if team members follow the rule that every idea is a good idea. This rule goes back decades. Alex Osborne, and advertising executive in the 1940s wanted to codify the methods used by his staff when developing creative advertising campaign. Upon observation, he noted that his team seemed to be more productive when they agreed with each other. So, he formed the every idea is a good idea rule, and we all believed the rule to be gospel truth. The problem is Osborne didn’t test his assumption. When the rule was researched recently, it turns out that Osborne was only partly right. The first obstacle to the rule is, it is impossible to treat every idea as a good one, because some ideas stink. To agree with a stinky idea is disingenuous, which destroys the trust of the team. Teams can’t create if they don’t trust each other. Second, agreeing with every idea shuts down the critical thinking centers of the brain. We have all been in meetings where the leader said, “Every idea is a good one. Who has one?” The very notion causes uncomfortable silence because it is saying, in a sense, “Leave your brain at the door.”

When groups were used to test the brainstorming process, a third of the teams were told to agree with every idea presented, another third was told to debate each idea on its merits and defects, while the final third (the control group) was told to employ no rules at all. The group that had the highest volume and most creative ideas was the debating group. The next most productive was the control group. Surprisingly, the least productive group was the one that agreed with everything.

Osborne was correct in recognizing that bluntly telling someone that their idea is stupid will shut down new ideas, inhibit group participation, and destroy productivity. So yes, we should avoid completely blasting someone’s idea. But respectful debate does the opposite. If I think someone’s idea is unworkable, and I say, “Charlene, I just don’t see how we can make that work. Tell me why you think it is a good idea,” it invites my team member to dig further into her idea. If my challenge is an invitation to mix it up, mentally, it sparks creative thinking; not only in Charlene’s brain, but in the rest of the team’s brains as well. The act of Charlene defending her idea causes greater brain activity in the group.

The only way for this to work is to recognize the difference between argument and debate. An argument is a back-and-forth It won’t work, Yes, it will test of wills. The winner is usually the one with more authority. For debate to be productive, it must be robust and respectful. During brainstorming, workplace hierarchy must be suspended. In fact, sometimes having more experience in a field prevents examining a issue creatively. It must be openly acknowledged that everyone must have an opinion, whether positive or negative. And, if Tim from the sales department is always shooting down others’ ideas, some people are just not wired to think up new ideas. However, if Tim is told that he can still be critical, but now must do it in a way that sparks healthy debate, you access Tim’s talents without sacrificing every else’s. A good leader guides the process and keeps debate productive. If a team member says, “That will never work,” the leader must ask why. Keep digging until the answer sparks even more debate. Now go do what hasn’t been done yet.

 

Stevie Ray is a nationally recognized corporate speaker and trainer, helping companies improve communication skills, customer service, leadership, and team management.  He can be reached at www.stevierays.org or stevie@stevierays.org.

How Do You Feel?: Emotions in Business

During a recent workshop, I was having a lively discussion with managers from various companies about how they navigate the emotional states of their employees. It is no secret that managers can play the role of therapist as often as they play the role of boss. In the old days, managers used to assume that employees left their personal issues out of the picture and just did their jobs. The truth is, it is impossible for people to be productive unless their heart is in the work. Sure, you can push through for a while, but if your emotional state is in the dumps, the outcome will be marginal and uninspired. So understanding how emotions affect decision making, cooperation, innovative thinking, and cognitive function is good information for any professional.

It was a nice coincidence that I had just finished reading a book on the subject. I volunteer recording books on tape for the blind, which means I am exposed to many books I would not otherwise read. And, since I select only from the non-fiction options, very often the books I record turn out to be great tools for a business owner such as myself. The most recent book was How Emotions Are Made: The Secret Life of the Brain. The author, Lisa Feldman Barrett, discussed research that suggests that people don’t react emotionally as we once assumed. Without getting too deep into details, most emotions are not the result of the brain reacting to a situation. Instead, the brain predicts which emotion will be appropriate for the situation, and then corrects its emotional state based on input that follows. The trouble with this process is, once the brain makes its emotional prediction, it is hard for it to change course based on new input. Essentially, once we are angry, we stay angry even if we discover there is no reason to be.

Because our brains can so easily go down the wrong emotional path, and it is so difficult to course-correct once they do, Barrett advises people to increase their emotional granularity. Emotional granularity is the ability to make distinctions between different emotional states. Since different emotions can have different causes, knowing exactly which emotion you are experiencing can help you avoid being an emotional puppet on a string. So, instead of just “being mad,” are you frustrated (caused by repeated failure to achieve a goal)? Disappointed (caused by a positive experience being denied)? Resentful (belief that someone else is the cause of your problem)? Or angry (caused by a value of yours not being respected). All these emotional states are unpleasant, but they are not at all the same, and each needs a different approach to find a resolution. By the same token, there is a difference between feeling elated, joyful, relieved, or giddy. These are all pleasant emotions, but caused by different experiences.

Note that I used the words pleasant and unpleasant instead of positive and negative when referring to the emotions above. If you consider emotions positive or negative, you limit your ability to manage a situation. While some emotional states might feel unpleasant, they are still part of the Ying-Yang balancing act of the brain. All emotions, pleasant and unpleasant, are necessary to a functioning brain. An emotional only has a negative impact if it is too prolonged, or causes a person to engage in unhealthy behavior. Managers who are uncomfortable dealing with unpleasant emotions are more likely to try to suppress them in others. This often leads to the other person feeling even worse, and not connecting well with that manager in the future.

So what does all this have to do with business? A lot. The more research that is conducted on the brain, especially in the field of decision making, the more we realize that humans make almost every decision based on emotion. This fact has been known, and employed by, sales professionals for hundreds of years. And the marketing industry follows the axiom, people buy with emotion and justify with fact. But emotional states guide much more of the brain’s processing that just buying a car or choosing a movie to watch. Emotions affect teamwork, customer satisfaction, manager-employee relationships, and employee retention. A brain’s emotional state affects its executive function (decision making, planning, and negotiating), and creative thinking. Understanding how the brain constructs emotions as a result of its perception of the world is crucial to managing people, not just selling to them.

Customers report higher satisfaction when a service rep “really seems to understand my problem.” This can’t happen if a service rep lumps every disgruntled customer into the Upset column. If I call a company help line and hear, “We’re so sorry for the inconvenience,” I don’t feel heard, I feel patronized. Sometimes I am inconvenienced, other times I feel frustrated, or frightened, or disappointed. If the language of the person serving me reflected that they really knew how I felt, my loyalty to that company would grow. Beyond customer service, when people feel that others really understand them, they work better together and remain part of a team longer.

If managers and business leaders developed a higher degree of emotional granularity in their own lives, they would have a better command over situations and employees. As with any situation, you can’t develop a good resolution until you have accurately defined it. And getting to the heart of someone’s emotional state helps avoid offering the wrong solution. In the future, when you feel an emotion, put a specific label on it. Go beyond happy and sad. Increase your emotional granularity (you might want to use Thesaurus.com) and expand your emotional horizons.

Instead of fearing unpleasant emotional states at work, fearing emotions all together, or lumping good and bad emotions into one big lump; accurately identifying emotions, and getting to the real cause, is a great first step to using the emotional brain we all have to work better together.

 

Stevie Ray is a nationally recognized corporate speaker and trainer, helping companies improve communication skills, customer service, leadership, and team management.  He can be reached at www.stevierays.org or stevie@stevierays.org.

Is Our Greatest Strength Our Ultimate Weakness?

It has recently been theorized that humans grew to dominance on this planet for reasons we didn’t learn in elementary school. We used to believe that having opposable thumbs gave us a leg up, but as handy as that fifth digit is, there are other animals capable of grasping and using tools. Then we thought our advantage was speech and language, but again, there are some species that communicate at least on par with us (and, if you follow Facebook and Twitter, some animals have us beat). Neuroscientists have now discovered the one thing humans are better at than any other animal on the planet; the ability to think as a group. Our minds are wired to literally read each others thoughts, detect each others intentions, and adjust our behavior to fit in with the group. This type of group thinking is crucial when you are one of the weakest animals on the planet. It also comes in handy if you are one of twenty pre-teens and you want to send your parents into a melt-down at the amusement park.

Sadly, as with all things in the grand scheme, everything has its price and every advantage has a down side. In order to create group-think, humans have developed mental triggering mechanisms that dictate our behavior. As much as we would like to believe that, when we make decisions, we weigh pros and cons and arrive at conclusions based on facts, it is these mental flip-switches that guide almost every decision we make. And one of the strongest triggers we have is the urge to be the same as everyone around us. Simply put, we do things because people who look like us, sound like us, and dress like us, do those same things. In fact, the same action performed by different people will be seen as evil (if committed by someone dissimilar to us), or good (if committed by one of our own).

Lest I appear to be damning the human race for this trait, the fact that our urge for similarity exists is not, in and of itself, a problem. It is, after all, what kept us alive for generations. The downside is that when this mental trigger flicks on it limits higher brain function. When we react with a knee-jerk “we are different from them” mentality, it shuts off a different key function of the human brain; empathy. Humans possess the rare ability to understand and share the feelings of fellow two-leggers, unless the triggering mechanism of “they are not us” overrides it. The trigger of similarity is a lower-brain function, empathy is a high-brain function. Without conscious control, lower-brain functions win.

Empathy is another mental faculty that, while not entirely unique to humans, is rare in the animal kingdom (especially at one-day-only clearance sales). We use “they aren’t like us” reasoning to explain all manner of behavior in people we don’t understand or agree with, but this assessment is frequently wrong. More often than not, the other party is actually exactly like us, but they act against us because they believe that we are the “different” ones.  For an extreme example, we believe the only reason terrorists can commit heinous acts of violence is because they are insane. After all, only a psychopath could kill so indiscriminately. Psychologists who were recently allowed access to terrorists in the Middle East discovered that these individuals tested negative for any signs of insanity. In fact, the terrorists displayed high degrees of the one mental faculty the psychologists expected to be absent; empathy. The reason the terrorists were able to maim and kill others without feeling guilt was because their empathy only extended to those within their own social group.

So what does all this mean to someone running a business, leading a team, or selling a product? It would be easy to dismiss these facts because, “Hey, I’m no terrorist.” However, a lack of empathy, or reserving empathy only for one’s own social or professional group, is quite common and can cause incredible damage to a company. An attitude of “we are different than them” causes breakdowns in communication, destroying productivity. The same attitude causes turmoil between co-workers. People who lack empathetic abilities misread co-workers’ behavior, and almost always with a negative twist; “He keeps interrupting me because he doesn’t respect a thing I do.” And ask any top salesperson how the ability to read a client’s feelings affects negotiating a deal.

All this can be a bit much for business-folk with a disdain for psychological mumbo jumbo or soft skills. The workplace is rife with people who are better at talking about stuff than they are at talking about people. To these individuals, any conversation other than the task at hand is time wasted that could be put to better use “getting something done.” What these people don’t understand is that ignoring issues of territoriality (the result of over-focus on similarity), and misreading other’s motives (the result of a lack of empathy) can cost the company dearly in time, productivity, and money. Make no mistake, the feelings of anonymity that comes from a population that communicates less face-to-face than ever before are making dissimilarity and lack of empathy an epidemic.

So what do you do? An over-focus on similarity is actually a simple fix. Regular conversations that are not work related are a quick way for people to realize that they have more in common than not. This may seem easy, but devoting time to non-work communication takes discipline. All it takes is a few weeks of a crazy work schedule and tight deadlines and all conversation goes back to the grindstone. Establishing empathy is trickier. Many psychologists believe that people are either born with it or not; in the same vein that people cannot grow a conscience. The earliest signs of empathy emerge around two years of age, so if the prospective employee sitting in the interview doesn’t show it, it isn’t likely to pop up later at a team meeting. Managers can try to lead employees toward empathetic reasoning (“I know you are angry at Jack, but we know Jack is a reasonable guy. So what positive reasons can you think of for his actions?). Some managers are better at this than others, and the outcome is not guaranteed. It is up to you whether you want to screen for empathy during interviews or attempt to grow empathic skills later. I would vote for the former. Either way, creating a workplace where people see each other as ultimately the same, and being able to understand the feelings of others, are qualities no leader can ignore.

 

Stevie Ray is a nationally recognized corporate speaker and trainer, helping companies improve communication skills, customer service, leadership, and team management.  He can be reached at www.stevierays.org or stevie@stevierays.org.

Coach or Critic: How to Get the Best Out of Your Employees

The brain can be a negative thing. There are all kinds of evolutionary reasons for this, but chief among them is that avoiding bad rather than seeking good has kept humans alive on a planet filled with threats such as dangerous animals, nasty neighbors, and convenience store sandwiches. How this negative tendency affects the workplace depends on which part of the brain you choose to dial up when responding to situations; the reactive brain or the thinking brain. This distinction is especially important for leaders because a reactive leader acts like a critic—negative, whereas a thinking leader acts like a coach—positive. Before you dismiss this by thinking “I am a great coach because I give my employees knowledge and support,” let’s take a closer look at how you might react to situations without knowing it.

Here is a clear illustration on the difference between critic and coach; between someone who uses the reactive/negative brain versus the thinking/positive brain. Have an employee stand up in a room. Place a bowl on the floor behind the person. Give the employee a handful of pennies. The goal is for the employee to toss a penny over his head and try to hit the bowl, without turning around to look at it. Your job is to direct the employee toward a successful outcome. This game is  a metaphor for every task you give an employee, and the outcome depends on whether you act like a coach or a critic.

A critic begins with “Your job is to hit the bowl. Go” The employee tosses a coin and misses. The boss says, “You didn’t hit the bowl. Did I make the assignment clear? Do you know where the bowl is located? Do you have all the pennies you need? Great. Now hit the bowl.” Another coin is tossed, and it lands on the floor. The critic/manager says, “You missed again. I thought the goal was clear. You have a bowl. You have plenty of pennies. You should have everything you need to hit your target, now go!” This continues until all the pennies are gone and no one is happy. Laugh if you want, but a lot of managers treat employees this way without knowing it. They make statements that only point out what is wrong, what is missing, or what is inadequate.

Now play the game with a coach. A coach says, “Alright, we’re going to work together to make sure we hit the target. What do you need from me to help you? Where should I stand? What kind of direction works best for you? Let’s try the first coin and see what kind of adjustments need to be made.” After the first miss, “Great! If you toss the next one a little to the left and with a little more power, I think you will have it.” After each miss, there are more corrections, until a coin finally makes it in the bowl.

I have used this game as an illustration of coach vs. critic at many workshops and some managers respond, “The second way takes way too much time. I don’t have time to molly-coddle my employees through every project.” The reality is it takes less time to be a coach than to be a critic. To be sure, coaching takes more work up front. There is usually more discussion and more clarification. Being a critic may take less time during each meeting because the boss simply says “yes” or “no” and that’s it, but this approach ultimately wastes more time because you will need a lot more meetings to get things right.

Everyday comments are either critical, “This report doesn’t have all the necessary facts!” or coaching, “So far, so good. All we need to do is add more supporting facts to back up our position.” Both approaches will eventually result in the same outcome—the boss getting what he or she wants, but one builds a better relationship and a stronger, more educated employee for the future. The tough part is, coaching requires using the highest centers of the brain. Criticizing is an instant reaction; no thought is needed. Coaching requires knowing the employee and just what is needed to get him or her to the next level of development. Criticizing only looks at what is wrong. Coaching examines what is needed to make it right. Simply put, being a coach takes more smarts.

I made reference to this in an earlier column about effective teams. It has been discovered that a crucial quality for a good team is psychological safety. A team that provides a safety net for its members develops more innovative ideas, solves problems faster, and has higher retention. Some managers don’t like this construct. One reader e-mailed me after reading the column about psychological safety and ranted about how I was promoting weakness and lack of accountability (in fact, teams that display psychological safety report a greater feeling of accountability to fellow members and to the outcome of the project).

In a similar vein, there are people who feel coaching is weak, and criticizing is strong. It is true, coaching has the appearance of being softer because it doesn’t seem to carry the weight of authority that critics have. However, the psychological outcomes are quite opposite. Whereas a critic instills fear, a coach inspires a feeling of obligation on the part of the mentee. With a coach, the employee feels obligated to reciprocate the positive direction and teaching; creating a good fear, of not wanting to disappoint the coach. For a coach, employees will walk through fire. For a critic? They won’t even grab a bucket of water.

 

Stevie Ray is a nationally recognized corporate speaker and trainer, helping companies improve communication skills, customer service, leadership, and team management.  He can be reached at www.stevierays.org or stevie@stevierays.org.

Want to be a leader? Military and sports analogies don’t fit.

This is going to sound a bit cranky, but I trust it will be taken in the spirit intended. I am tired of hearing leadership and team work lessons from the military, sports, or from people who have survived horrible disasters. The most notable example was when the business world latched onto Ernest Shakleton’s Arctic Expedition in the early 1900s. When his ship was crushed by shifting ice, Shakleton led his men to safety by surviving over a year in the Arctic. Make no mistake, this story is one of great heroism and self-sacrifice, but I challenge any manager to translate the lessons of Shakleton’s voyage to the daily task of keeping a working group motivated and productive.
The same holds true for lessons from the military. Again, make no mistake that I hold our men and women in the armed forces in the highest regard, but teamwork in the field is quite different than teamwork in the office. In the military, and for Shakleton, teamwork has one goal; stay alive. The laser focus of survival, of keeping every team member at your side and breathing, allows one to forget petty disagreements and personality clashes. That is neither the kind of workplace we should strive for, nor one that would produce lasting results.
Sports analogies are also worthless in the workplace. All you hear is how “teamwork helped them to victory.” Duh. We understand that if one basketball team has five players on the court and the other has one, the team will probably win. But the world of sports is not creative, it is authoritarian. The coach creates the plays, the players each have one part to play. Any company or organization that followed this plan would not last long.
First of all, fear—whether for one’s survival or one’s job—creates a stress that only allows the brain to focus on one thing, eliminating the fear. This kind of stress cannot be endured for long, which is why managers have learned not to use the threat of firing as a motivating tool. Also, stress does not enhance creativity, it kills it. Those under extreme stress are always encouraged by leaders to “rely on your training.” This advice is effective for the military and for sports, where individualism is harmful to the team. For a working group, however, this atmosphere would quickly suffocate the company.
No one in a military unit would dream of harming a teammate, just as everyone on Shakleton’s team knew that their survival depended on the survival of everyone. In sports, the loss of a valuable teammate is obvious. That attitude, however, is not as easily maintained in day-to-day working environments. In some cases, the loss of a teammate can actually be beneficial to someone looking for an opportunity.
So now you’re asking, “So what? Why the tirade?” Simple. As leaders we must stop wasting our time by looking for simple analogies—military, sports, survival—to teach how us to lead. We have to dig deeper and work harder. We have to read, research, and challenge; not simply accept advice from people who hold a title. We must truly understand how people are motivated, not just what makes them want to survive.