Leadership Done Right

Brandon W. Jones

Leadership Done Right Blog

SAS Institute

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SAS Institute is a good example of how to run an organization effectively and smoothly. They were quite different from their competitors in several ways. They were very different in the way that they did their outsourcing, recruiting, compensation, and benefits. They set up a system helped the employees to work effectively and efficiently. The system wasn’t too stringent on the employees. It gave them freedom to set their own schedules.

SAS Institute

SAS Institute

SAS Institute did very little outsourcing which helped to provide more opportunities for new employees within the company. By avoiding outsourcing, they were able to retain more control over every aspect of the work that they did. Temporarily it is fine to avoid outsourcing, but in the long run it becomes very expensive to do all processes in house. They could also run into problems with entering markets that are unrelated to their core processes. [Read more…] about SAS Institute

Dissension in the Ranks at Nordstrom

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The system at Nordstrom was a failed system. It did not reward the employees based on the hours that the employees put in. There are three areas that the company went wrong.

Three Downfalls of Nordstrom’s Approach

First, it didn’t let the employees know upfront what kind of hours they would be expected to work. Second, it had an overly strong competition between the sales associates within the stores. And third, their pay structure was broken. All three of the above points illustrate that the system was broken.

Dissension in the Ranks at Nordstrom

1. Nordstrom’s Compensation System

As the first point indicates, Nordstrom would hire people under a specific set of duties and responsibilities and expect a completely different set. The managers wouldn’t explain how the compensation system was going to be set up based on the sales per hour structure. Once the employee was hired on, they would then expect them to work extra hours without pay or they would give them bad reviews as not being a team player. [Read more…] about Dissension in the Ranks at Nordstrom

Specialty Medical Chemicals

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In the case study, Specialty Medical Chemicals, there are some significant systemic problems. There were three main areas of problems that were occurring in the case. The three areas were: the management approach taken by CEO Carl Burke, the response of the existing vice presidents, and the system as a whole.

Specialty Medical Chemicals

Specialty Medical Chemicals

When Carl Burke became the CEO, he was an outsider to the company. He first took the approach of, “I am just going to ride the wave for a little while and see where it takes me before I make any drastic changes.” As he did this, he found that the company wasn’t performing as he felt it should. Because he had spent his entire career with a single company, his overall outlook was very narrow-minded. He felt that all companies should operate the same way that he was used to operating at Merck. Although it was important for him to come in with his own ideas, it was equally as important that he come in with a little more flexibility. [Read more…] about Specialty Medical Chemicals

Lessons From Tony Dungy And Lovie Smith

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Tony Dungy and Lovie Smith

As was demonstrated by both Tony Dungy and Lovie Smith, yelling at people isn’t the only way to get them to do what is expected. Both of these men have set up a system that sets expectations for individuals and then holds them responsible for reaching those expectations.

Tony Dungy and Lovie Smith

In these systems, there are specific consequences depending on whether or not the individuals meet the expectations. If the person does not live up to the expectation there is a negative consequence, but if they do live up to the expectation there is a positive consequence.

In reality, the success or failure of an individual or group is significantly determined by the way the system/environment is set up. Tony Dungy and Lovie Smith have set up a system that helps those involved to succeed. The athletes in their systems know what they can and cannot do at all times and are able to act accordingly.

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Get Healthy or Else

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The article, “Get Healthy Or Else” by Michelle Conlin discusses the dilemma between cutting medical costs without killing employee morale. In 2007, Scott’s Miracle-Gro made sweeping changes to encourage employee health. They required employees required to participate in a full/all-inclusive health screening to receive the lowest insurance premiums. Employees were also required to have a health coach and the company policies were changed to prohibit smoking.

Those who made healthy choices were rewarded. To promote healthy habits and regular exercise, they built a health facility across the street from the company operations office making it easier for employees to exercise. Between the health facility and coach, they created a system that encouraged and enabled employees to succeed within the new rules.

Get Healthy or Else

The Story of Joe Pellegrini

The article shares the story of Joe Pellegrini, the 48-year-old supply chain executive. Joe designed and implemented the new program and was subject to the same strict policies to receive the lowest premiums.

When the program was first implemented, Joe began receiving coaching. His coach continuously encouraged him to see his doctor because of his weight and hypertension. Like most people, he put it off for quite some time. He was an active guy with a regular fitness program so why should he get checked?

By the time he finally went in, the doctor found a 95% blockage in his heart. He was basically a dead man walking. They performed emergency surgery and put in two stints to save his life. Joe Pellegrini cheated death by finally going to the doctor.

The Story of Scott Rodrigues

On the other side of the equation was the story of Scott Rodrigues. He was a 30-year-old with a regular smoking habit. Scott was hired at the start of the new health program. Scott didn’t realize it, but the new health program had a policy prohibiting smoking. It made regular cigarettes against the drug policy. Shortly after starting, he received a drug test and failed. The reason? He had nicotine in his system from his smoking habit. Therefore, Scott’s Miracle-Gro terminated Scott because he failed the test. [Read more…] about Get Healthy or Else

Jesica’s Story – The Story Of A Failed System

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In the article Jesica’s Story: One Mistake Didn’t Kill Her – The Organ Donor System Was Fatally Flawed explained the story of Jesica Santillan. Jesica was born in Guadalajara, Mexico. As a child she didn’t have stamina and as she grew older, she would get tired more easily. Her parents noticed this change and sought medical attention. After tests and other medical investigation, the doctors determined she had a weak heart. They felt her best chance of survival was further medical treatment in the United States.

Jesica's Story - Jesica Santillan

Her parents took her to North Carolina because of family, the Mexican population, and nearby medical facilities. While Jesica Santillan was in school, the school officials found she was having health problems and sent her to Duke. Duke eventually decided to give her a heart and lungs transplant. Tragically, her heart-lung transplant went horribly wrong and Jesica died. Her blood type and the donor’s did not match. That small error cost Jesica Santillan her life.

The Aftermath

Immediately following the tragedy, the surgeon, Dr. James Jaggers, took responsibility for her death. He said that since he failed to notice the difference in blood type, it was his fault. This tragedy, however, led to investigations which found several checkpoints when people should’ve checked the blood type but didn’t. They determined that Dr. James Jaggers was just one person in a series of mishaps that led to Jesica’s death. Jesica died because of a systemic problem, not because of one person’s failure. [Read more…] about Jesica’s Story – The Story Of A Failed System

How Important is Environment?

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The blog by Bob Sutton titled “Work Matters” and the article “Can Personality Be Changed?” by Carol S. Dweck both talk about how personality is developed and beliefs/knowledge are shaped. Many people have the idea that each person is born with their individual personality and that it will not change through life experiences or environment. Others believe that an individual’s personality is shaped continually through life.

Is It The Environment?

In a similar sense, some believe that people are either born smart or ignorant. They feel that those who will be successful in life are born that way, while those who are unsuccessful are also born that way. On the other hand, some people believe success or failure of an individual is a choice resulting from their behaviors.

How Important is Environment?

Each person is born with a distinct personality, but ideas and beliefs change as each person journeys through life. Each person, to a large extent, is born with the foundation of their personality. Then through life experiences they develop the structure of their personality. Each person is born with specific talents and personality traits that they can either develop or not develop through life experiences. Some of those personality traits may include humility, knowledge, wisdom, etc. Talents may include art, music, sports, etc. While each individual may have specific talents or personality traits that they are born with, it is possible to obtain a new talent or trait through practice and dedication. [Read more…] about How Important is Environment?

Use HR for A Competitive Advantage

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There are many lessons that can be learned from a successful company. Southwest Airlines is a great example of how the proper use of the human resources department can create a competitive advantage. Many companies say their employees are their most important assets, but relatively few companies act accordingly.

I learned from the case study that in big corporations it is actually possible to treat the employees as the most important asset, which in turn it creates a competitive advantage. Southwest Airlines put the needs of their people foremost creating a unity amongst the employees that was very strong.

Use HR for A Competitive Advantage

Create a competitive advantage through HR

As Southwest Airlines demonstrated, the people within a company are the most important asset. When the employees feel needed and appreciated they will work harder. In addition, it is very important for the employer to take care of its employees so the employees can trust the company. One of the biggest factors in employee satisfaction is the measure of trust they have in the company.

An additional factor that was very important to Southwest Airlines was allowing the employees to be themselves. Some companies say they allow employees to be unique. However, immediately upon hiring, they put the employee into the predetermined mold. From the Southwest Airlines case, I was able to learn how to allow people to be themselves. People can be put into a job where they are required to do certain tasks but then given the freedom to make decisions and interact using their best judgment.

Another important factor that leads to employee satisfaction is the employee’s ability to make important decisions without having to constantly ask permission. I’ve worked in situations where I was unsure which decisions I could make and those only the supervisor could make. Those situations created a great amount of uncertainty which hindered my ability to work effectively.

I have also worked in other situations where I was able to make decisions without having to ask my supervisor. Those situations gave me more confidence and allowed me to be a better employee. Additionally, that trust made me more conscientious about my work, since it wouldn’t be reviewed quite as closely.

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