sam palazzolo

The Leadership Challenge: Agile Talent – 3 Tips!

August 23, 2016 By Sam Palazzolo, Managing Director

The Point: If you/your organization rely on external experts to develop transformative products so as to (1) better understand how people think and use your products/services or (2) aim to benefit from external expertise as a strategic extension of your resources you probably understand that agile, fast, and lean strategies require you to think in new ways about (a) accessing and leveraging key strategic talent and (b) filling critical gaps in strategic capabilities… The answer may lie in your ability to identify/secure agile talent. In this post we’ll examine the leadership challenge of external agile talent and propose 3 tips… Enjoy!

Agile Equals External, Project-based, and Flexible

An estimated 20-30 percent of today’s workforce is comprised of talent which is based outside the organization’s full-time, permanent employee-employer relationship. Another study reflects upwards of 40 percent! And yet a third study reflects that nearly 25 percent of the US Workforce is comprised of independent contractors engaged in work for more than one organization.

While these financial expenditures help keep labor costs low (The all important expense found on an income statement), they also represent a leadership challenge working with such agile talent because by their very nature, external talent is just that… External the organization, especially when considering the agile talent’s individual mission/vision/values in comparison with that of the sponsoring organization.

How to Effectively Manage Agile Talent – 3 Tips!

The following represent three tips when working with such agile talent:

Tip #3 – Manage the Relationship

When sourcing and recruiting agile talent, most organizations assign the task to purchasing departments (not even human resources is consulted). This leads to the implementation/management of talent to those operating managers that were not even involved/present with hiring decisions. The obvious discord between purchasing and operations leaves a “gap” between expectations and engagement pursuits. In order to overcome such gaps, best practices include joint sourcing of agile talent whereby skills and talents are identified and allowed to execute according to organizational guidelines.

Tip #2 – Competitive vs. Cooperative Environments

While securing agile talent external to the organization can bring an influx of subject matter expertise to initiatives, these subject matter experts may be looked at as competition to those internal the organization. Best practices include creating an environment of cooperation, where internal talent and external agile talent combine for successful project execution.

Tip #1 – Results Focus

Selecting, engaging and managing agile talent is at the heart of successful change initiatives. However, most operations look upon external talent as those that are “separate, but not equal” in stature to those internal talents. Therefore, the results are often askew of intended results. Best practices consist of hiring for short, as well as long-term goal attainment. Such a broadening of goal attainment vision won’t allow for a “separate, but not equal” atmosphere/attitude.

SUMMARY

In this post we’ve examined the leadership challenge of agile talent, as well as three tips to improve best practice outcomes. Important tips to remember when engaging external talent include managing the relationships, creating a cooperative atmosphere, and maintaining a results focus on organizational mission, vision, and values.

Sam Palazzolo

www.BloodSweatSpears.com

The Leadership Challenge: Holacracy (like Zappos) – 5 Tips!

August 22, 2016 By Sam Palazzolo, Managing Director

The Point: What would your organization be like if your employees lead themselves? Would it be better, or would it be worse? Tony Hsieh of Zappos after hearing Brian Robertson (a software company CEO and therefore people expert) bet that his organization would be better… Considerably better! In the short term, Holacracy at Zappos appears to be a recipe for chaos, calamity, and turnover in its ranks (In other words, the opposite of success). So the question remains “Will the success-ship be righted at Zappos in the long-term?” In this post we’ll take a look at the leadership challenge of Holacracy along with 5 tips… Enjoy!

Zappos Holacracy

The Zappos Culture can be described as an obsessive focus on creating a culture that embraces the idiosyncrasies of each individual should leave few wondering why they’re continually a stalwart on Fortune’s annual list of the “100 Best Companies to Work For.” However, many are now wondering how to implement their human resources ranking system simply known as “Holacracy” (a system that has replaced hierarchies and bosses with “self-management” of organizational teams and individuals therein).

While securing “100 Best” attainment would be viewed as “Great” or even “Good” for most organizations, Zappos is looking to identify how they’ve slid from 48 to 58 (Digging deep into the results yields two particular questions showing dismal results: Do employees think management has “a clear view of where the organization is going and how to get there”? And do managers “avoid playing favorites”?) Seems like a small problem (“Who cares?” or “Pigs get fat, hogs get slaughtered” should come to mind!)

Teal replaces Orange (Which replaced black, right?)

Zappos can, and should be looked at as an enterprise that embraces risk-taking. Having taken the “tour” last year (You can too if you plan a visit: https://www.zapposinsights.com/tours), I can honestly say that the place is ripe with transformation. Memories of stuffed animals, ball pits, and individualization were everywhere… Think of it as if Willy Wonka transitioned from making candy to selling shoes!

5 Tips to Holacracy Success?

After viewing the Holacracy in play at Zappos, I offer the following 5 Tips to Holacracy Success:

Tip #5 – Embrace Change

While huddling up and having meetings is nice, identifying where change is at (Along with Where it came from? What you are doing about it? Where you want to go?) is crucial to short/long-term success. While you can’t guarantee successful outcomes to each/every change episode, properly diagnosing and setting a course of action can guarantee shorter episodes of change failure.

Tip #4 – Someone Must Lead

While it’s a nice idea to have zero leaders in an organization (as well as establishing high expectations), expecting peers to hold each other accountable can/will lead to moments from “The Lord of the Flies” to be played-out. If leaders do what others won’t, someone must step-up and lead.

Tip #3 – Recognize Shortcomings and Correct

If you don’t measure, you can’t manage effectively. Whether you take on a task such as Holacracy or not, managing by measuring is a must. “Measure what?” you might be asking… The answer is “Yes” (Measure everything important to driving towards your organizational mission/vision/values).

Tip #2 – Turnover Kills People Businesses (You Do Have People, Right?)

Zappos reports 29% employee turnover during their Holacracy efforts. Now whether that is high/higher than normal, one thing is shared and that is the majority of that number was made up for the first-time by leaders looking to lead (only this time somewhere other than Zappos). Do the right thing when facing turnover and conduct exit-interviews (Interview those exiting the organization to identify why they are departing, and modify if necessary).

Tip #1 – Recognize Performance (and Individuals)

There is no “I” in team, but there is in “Win”… While recognizing performance that drives towards aforementioned mission/vision/values for your organization should be considered a given, is there really no-need to recognize individual team member contribution to said importance?

SUMMARY

In this post, we’ve examined the leadership challenge of Zappos Holacracy, along with 5 tips to Holacracy Success. I loved my time at Zappos, and I think that if you go on the tour or work with the organization you will too! The culture is one that I only wish existed when I started my career (In case you’re wondering, I could see myself spending considerable time in the ball pit!) The challenges of the future of your business could very well be in adopting similar Holacracy moments (However, I would imagine first-to-market leaders such as Zappos will establish a solid benchmark to measure from).

Sam Palazzolo

The Leadership Challenge: The Prudential Problem – 3 Tips!

August 18, 2016 By Sam Palazzolo, Managing Director

The Point: Whether you run a large, or a small organization you will sooner or later be faced with an ownership dilemma as follows: Should I allow those that participate with me in the venture to gain an interest in the venture? In this post we’ll explore employee ownership and whether or not it’s right to disburse ownership to those that join you in your leadership journey along with three tips… Enjoy!

Employee Stock Ownership Programs (ESOP)

Meet Bob… Bob has successfully run his organization from initial start-up phase through ideation/creation and ultimately lift-off (All successful I might add!) The organization is flooded with his blood/sweat/tears along that path. Bob recognized something early, that being he could not get to “there” (The “there” he wanted to be according to his business plan) without recruiting others to assist him. So he recruited successfully as part of that business plan and achieved what most would consider success. However, there came a time when Bob was faced with an employee dilemma… Should he give up a “piece of the rock” of ownership a la the Prudential advertising slogans of old and provide a piece of the ownership puzzle to those that accompanied him on said journey?

Because They Are With You, Do They Deserve Ownership?

Employee Stock Ownership Programs typically provide ownership interest in the form of equity to employees (Typically with no upfront costs associated, as a form of employees remuneration for work performed). While this is a gracious, and often golden-parachute for employee ownership interest in luau of cash compensation, it typically isn’t predetermined by most entrepreneurs.

The Prudential Problem: Three Tips!

The following leadership challenge discusses the topic of providing ownership interest for associates and provides consideration topics to insure that this is the best course forward:

The Prudential Problem #3 – Are They Equal Owners?

The first problem to identify is whether or not employees act as equal owners to that of original leadership within the organization. While there is considerable risk involved in starting an organization (ideation alone that results in creative innovation could spell the different between success/failure), stakeholders typically come to an organization that has well established paths forward towards profit.

But what if your organization doesn’t have such well established paths forward towards profit? What if there is a need for differentiation of thought and pivots therein based on consumer preference? Are there new ideas brought to the forefront which could establish ownership mentality?

The Prudential Problem #2 – Should They Receive Ownership Interest?

If new ideas are brought successfully to the forefront of organization direction to accomplish organizational mission/vision, at what level should ownership be distributed?

Given that there is such ownership mentality present is it fair to those employees that provide such direction a certain percentage? What will happen to those employees that do not provide such direction, yet are afforded the opportunity to act/carry-out such processes?

The Prudential Problem #1 – What if They Don’t Deserve Ownership Interest?

If the ideation and carry-out of such processes leads you to believe that ownership interest is deserved, then certainly a percentage of ownership could be made a case for distribution. Identifying who will receive what percentage and in what format (Current equity valuation versus future) could be justified.

My perspective is that those that provide ownership mentality and carry-out such direction may deserve equity distributions. Identifying therein the levels required to maintain not only current, but future, interest is often dictated by the equity levels provided.

SUMMARY

In this post we’ve analyzed the leadership challenge of the Prudential Problem of giving up a piece of ownership equity in order to further the organizational mission, along with three tips to provide insight into the dilemma at hand. If you’re like Bob (and sooner or later you will be), the dilemma could/will be indicative of future strategic business moves you will face. Make the right moves, and the organization may continue on its success course. Make the wrong moves, and the organization could fade away into oblivion (or somewhere in-between).

Sam Palazzolo

The Leadership Challenge: Innovator or A$$hole – 5 Tips!

August 2, 2016 By Sam Palazzolo, Managing Director

The Point: In a constant drive for success and achievement, most leaders find themselves challenged with how best to spur on the creativity of their team to produce innovative results. However, 9/10 (but who’s counting?) this drive for innovation is misconstrued for a$$hole (Yes, that’s the word you’re thinking of – ahole!) behavior. In this post, we’ll examine the leader’s drive for innovation and provide five tips to avoid the ahole innovation trap… Enjoy!

In Steve Jobs We Trust

Meet Susan (name changed to provide anonymity), a hard-driving mid-level manager for a Fortune 100 organization. Susan recently graduated from a top-tier Executive MBA program and is on career path fire in her organization (Even though it is an extremely BIG pond as far as companies go). Having made the half-way point for the year, she finds herself in the luxurious position of being ahead, well ahead, of her individual and teams goals. However, there is one small problem with Susan… She’s an A$$hole according to her team members.

In reviewing results for a recent Behavioral 360 Degree Assessment (One where not only Susan, but her stakeholders – Superiors, Peers, and Subordinates – provided feedback on her behavior/performance/leadership qualities) it was not surprising to see Susan ranking her self higher (at times significantly higher) than that of the stakeholders who she invited to provide feedback. The results were brushed-off by Susan with a simple shrug and accompanying statement of “They [stakeholders] just don’t understand my ‘Steve Jobs’ persona replication… I’m ahead of goal, right?”

The Drive to Innovate

The fine line between leadership innovation and aholery is an easy one to cross, criss-cross, and/or stay on one side as a leader. “Those that innovate survive!” is Susan’s motto, but is it all there is to the road to successful innovation attainment?

I would argue that establishing course direction and accompanying correction upon identification of off-course moments is crucial. However, technique for original goal development, implementation and adaptation is crucial to your stakeholders identifying you as either innovator or ahole. If as a leader you think your stakeholders are misreading the situation, then do something about their perception because their perception is the reality!

5 Tips to Avoid the A$$hole Innovation Trap!

The following are five tips to avoid what I have come to term the “Ahole Innovation Trap” as a leader:

Tip #5 – Goals 1.0

Establish goals with your superiors for what high performance results should be. These should include not only desired results, but metrics that will be captured along the way so as to verify goal attainment (Think of the all too popular ‘dashboard’ and you get the picture).

Tip #4 – Goals 2.0

Review goals established in Goals 1.0 with your team, and with your team’s input identify how these goals should/will be accomplished.

Tip #3 – Delegate Responsibilities

If in Goals 2.0 you’ve identified the desired course forward towards goal attainment, delegate responsibilities to your team members. Establish who will precisely do what by when. IMPORTANT: Review with the team what has just been developed a the conclusion (This might take more than one meeting!) NOTE: You as a leader are not void of responsibility here… Insure that you provide goals for yourself as well in addition to Tip #2 and Tip #1 as follows!

Tip #2 – Accountability

Establish accountability to achieve delegation responsibilities at frequent time intervals with the team. This way, not only can you police activities, but fellow team members can help keep each other on-time/on-target as well.

Tip #1 – Monitor/Measure/Modify

Lastly, as the leader it’s important that you monitor what was established through non-judgmental measurement intervals. If you are on-time/on-target identify how you can accelerate through the timeline. If you are off-time/off-target identify where you came off-track and how you can quickly get back on-track.

SUMMARY

In this post we’ve taken a look at the leadership challenge of innovation or ahole, along with five tips for success in being known as an innovator. Regardless of your level of leadership, the skill of innovation can distinguish you from your peers. However, the ability to conduct goal attainment with accompanying ahole recognition can be career limiting.

Sam Palazzolo

PS – Susan turned out just fine… Through a series of executive coaching sessions with stakeholder feedback she quickly regained “Innovator” title!

The Leadership Challenge: Title Dilution – 3 Tips!

August 1, 2016 By Sam Palazzolo, Managing Director

The Point: If you’re an achiever in your career, your title not only represents what you do BUT your accomplishments as well. So what happens if you’re at an organization that elects to water-down or dilute titles so that everyone appears to be harmonious/at the same level operating as an entire team? In this post we’ll examine the leadership challenge of title dilution and what you can do to elevate yourself from mediocrity as you escalate the org chart on your career path… Enjoy!

The Elevator to the Top!

Every once in a while I find myself in a situation that bears repeating. Case in point this past week in an elevator riding to the top floor to spend some time with a client. Enter onto the elevator two young women also traveling to the top floor. Their conversation could be captured as follows:

Woman #1

How are things going for you over at Company XYZ?

Woman #2

They’re going fine, but I’m so concerned about our policy of title dilution. While I’ve never been concerned for me, or my abilities to achieve, the fact that we dilute company titles makes me feel like I’m not being recognized for my achievements. I mean, I know I could go over to Company ABC and make more money, but I’m not certain they’d even give me an interview because it looks like I do the work of an entry-level employee. I’m concerned…

We’re All One Team, Right?

Title Dilution is the concept that all members of a team are provided with equivalent titles. Leaders and Team Leaders not only sit/work together with their teams, but they all have the same title to boot! So what if you work for an organization that chooses to similarly title dilute? How will you be recognized? What will you do to not only stand apart from the team crowd, but remain a valued member of the team?

While you may not have to worry about title dilution as you ride the career elevator in your current organization, I see a trend of more and more organizations wanting to equate equals as part of the team as opposed to different (or same as but different).

3 Tips for Title Dilution

So what is the career savvy achiever to do so as to avoid title dilution? I provide the following Three Tips to overcome title dilution regardless of where you are at on your career path journey:

Tip #3 – To Thine Own Self Be True

Shakespeare spoke of a clever conversation between a father and son regarding escalating the org chart (or as good as career advice could be provided back in his day). It all starts with knowing who you are and what’s important to you… Here’s the passage from Hamlet (Act 1, scene 3, 78–82):

Polonius:

This above all: to thine own self be true,

And it must follow, as the night the day,

Thou canst not then be false to any man.

Farewell, my blessing season this in thee!

Laertes:

Most humbly do I take my leave, my lord.

Tip #2 – Fish Determination

Are you a BIG fish in a little pond, or a little fish in a BIG pond (or does pond size matter?) I meet with a lot of leaders that either struggle or excel depending on the situation that they find themselves. Know this much about yourself: You probably have greater comfort in one setting versus another. With that in mind, identify what your best setting is and look to maximize your impact.

Tip #1 – GOALS

If you don’t have goals, you’re either (A) dreaming or (B) letting someone else determine your fate/destiny/outcome. If titles are important to you (either for ego purposes, marketing your brand, or the perception of greater income – either real or imagined) then an organization that dilutes the titles of achievers may or may not be the right place for you.

SUMMARY

In this passage we’ve taken a look at the leadership challenge of title dilution and presented three tips. Important to note that while careers aren’t built/realized overnight, they can come unwound in a relatively short time period. Identifying who you are (and what’s important to you), where you are at, and a plan for success should assist you in overcoming dilution moments in your career regardless of whether you are just starting your journey, midway, or looking for a way to “ride off into the sunset” as you leave your legacy for others to marvel at.

Sam Palazzolo

sam palazzolo

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