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Lifting Depressed Organizations

1/8/2013

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My no-nonsense boss, the company’s CFO, was unusually gleeful in our weekly finance management meeting.  He announced a two-day all-company management meeting to address internal people relationships issues.  He said that the meeting facilitators were from an organization that some considered a cult.  Our human resources department had engaged them at the company president’s request.  He said he’d never before participated in this kind of thing.  How fascinating and different from the normal work routine!  All 200 or so in management would attend including those who would fly in from around the country to the Midwestern city of our headquarters.  He was so tickled, in fact, that he didn’t even grumble about the large extra expenses for airfare, hotels, and time-off from regular duties in our upstart company.

I knew the company had big people problems.  Everyone did.  If organizations had personality and mood profiles like people—and I would argue that they do—I would describe our company as having chronic major depression.  Something did need to be done for our company to be successful in the long run.  And while the president was behind this meeting, everyone—except him—seemed to know that the bottom-line problem was the president himself.  He was one of the most un-people-persons I’ve ever known. 

He must have been aware of this—at least at some level.  People close to him must have told him because at one time he held a series of breakfast meetings to reach out to people with three or four headquarter employees at a time.  In my meeting with him, he spoke about the great progress of his company.  I don’t recall anyone else saying a word.  He asked no questions.  He did all the talking.

Once when I passed him in a hallway and said hello, he said nothing, turned his head up and away from me and kind of smirked.  I don’t think he did this on purpose.  I think he lacked awareness of how his interactions affected others. 

Another thing he did was to abruptly fire people—including his key vice presidents.  They were directed to leave the building immediately. This seemed to happen when things weren’t going well for him with the company owners.  In my mind, he gave the phrase “thrown under the bus” a whole new meaning.  I heard an engineer coworker once comment at the water cooler that when there were lions around, the president would throw out the bodies of employees ahead of him.

The time for the big two-day meeting came.  It was held in a large basement conference room without windows (probably not a good choice for a meeting like this) in a hotel near our office building.  Incidentally, this hotel is where former NFL football star OJ Simpson stayed the night after he fled on a plane from Los Angeles after his wife had been brutally murdered.  We employees called the hotel “The OJ Hotel.”

The meeting was okay—not too weird.  It felt like kind of a sensitivity training session.  We were asked to be very open and share our thoughts and feelings. 

While we met, I couldn’t help thinking that there was a big elephant in the room:  It was the president’s interpersonal skills and his management tactics.  The key problem was that the president didn’t care about and respect other people.  In turn, people didn’t respect and care much for him.  The emperor wore no clothes.

Please picture this.  All company managers at a chronically depressed company held a sensitivity training session led by a cult organization in the “OJ Hotel.”  There was a big elephant in the room, and the president wore no clothes.  As is said, sometimes fact is stranger than fiction!

But seriously, I don’t think the meeting did much good.  Things continued working in pretty much the same way, and the president continued in his old ways.  Several months later, I was abruptly terminated and asked to leave the building immediately.  The reasons for my termination given by my boss were not the real reasons, I don’t believe.  At the time the president was taking heat from the owners and others about some financial projections that the president and I had prepared together.  I understand that later, the company and all its operations were sold and the management team was dissolved.

In my mind, I don’t blame the president for what happened to the company or to me.  I think he did the best he could at leading the company given the skills and values he possessed at the time.  If blame were to be assigned, perhaps it would be with the company ownership who decided to hire him.  Even there, however, they did the best they could in their hiring methods. 

Even more importantly though, I am sympathetic to his situation.  My subordinates in some of my past positions could write pieces like this one on my past gross inadequacies in leadership—and they’d probably be right!  This is painful for me to ponder. It’s easier for me to write about someone else’s flaws!

As I look back, the roots of my issues were the chronic clinical depression and anxiety from which I suffered for years.  I was unaware of the impact they had on how I led other people.  I was focused inward —self-absorbed—and I was insensitive to others.  At the prompting of my dear wife, I got help even though I didn’t see the need when I first began.   I participated in psychotherapy.  I did a lot of work on understanding myself, my suppressed emotions, and painful unresolved memories of my childhood.  I now take an antidepressant.  My wife and children, who know me best, tell me my interpersonal skills have improved significantly.  I like to think that I’d be a better boss although I don’t supervise anyone right now.  I’m much happier and life is more fulfilling.

I have no way of knowing the mental health history of the president of my old company.  Nevertheless, I suspect he too had issues.  Perhaps like me he was unaware of them.  I hope he has recognized these issues and has received help to get to a better place.

The leadership lesson here is that people’s interrelationships do have a significant impact on the success of their organizations—and the pattern is almost always set at the top. Mentally healthy leaders lead healthy organizations.  Unhealthy people lead depressed organizations. 

In his landmark business leadership book Good to Great, Jim Collins addressed the critical impact of top leaders in organizations.  He described traits of chief executives of companies he identified as “great”:  “No airs of self-importance,” “lack of pretense,” “ambition is first and foremost for the institution, not themselves,” “willful, humble, and fearless,” “they’d talk about the company and the contributions of other executives…but deflect discussion about their own contributions,” and “never wanted to become larger-than-life heroes.”  To me, these sound like outward-looking, mentally healthy people who are at-ease with themselves.

There is no easy fix for leaders who desire to improve, to take-on these traits.  These are attributes that come naturally from deep within a healthy being. Significant improvement comes from first resolving personal mental health issues.  Practicing nice techniques learned in the classroom are just window dressing.  Real change in core attributes takes recognition, help from professionals and others, and a lot of time and effort.  There are no shortcuts.

Experts say that 25 percent of the population suffers from mental illness that should be treated and of those, 40 percent go untreated.  I speculate that these percentages are greater among highly-driven people in management.

In my experience, this journey of achieving awareness, seeking help, and working to recovery are gut-wrenching.  Mental illness stigmas, finding the right fit of mental health professionals, discouragement, and other obstacles are tough.  But, it’s worth it.

Most of my career has been spent as a bottom-line oriented CPA.  I spent over 25 years with “Big Four” international accounting firms and in the financial management of multinational large enterprises.   But now I focus on the touchy-feeling matters of people relationships in the workplace and the mental health of organizations.  I’ve come to believe that these matters have a bigger impact on the long-term success of organizations than finances, strategic plans, and metrics.  (Gasp!  Did a hard-nosed, numbers-driven CPA really say that?)

So what is the most important thing a leader can do if his or her organization is struggling with interpersonal relationship issues?  Consider looking inside yourself first.  Ask the people with whom you are closest and whom you trust if there are personal issues you should address.  Listen very carefully.  Then, if they so suggest, get help. 

This likely will do more than holding an all-management meeting led by a questionable organization in a hotel with a history.  


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Focus on People's Strengths

11/29/2012

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It was the turn of my son-in-law, Andrew, to state few things he was thankful for as we worked our way around the Thanksgiving dinner table with turkey and all the trimmings.

“I’m thankful for Carolyn (his six-year-old daughter) and how she is really good at math.  I’m thankful for Angela (four years old) and how she is always so helpful to everyone without being asked.”

When it was our daughter Jannie’s turn, she talked about additional great traits of our wonderful granddaughters. 

I was touched!  What great parents to recognize the individual talents and gifts of their children, and to express them in a way that builds their self-esteem and confidence.

I was left wondering if they had heard a couple of the same speeches I had over the last few weeks.  They said they had not—which left me feeling that great parenting just came naturally to them.

Terri Flint, employee assistance director at a major hospital chain, spoke a few weeks ago at the annual NAMI Utah state convention about how the worst bosses ignore their subordinates, the “next-to-worst” ones criticize them, and the best help them recognize their strengths and empowers them to use those strengths for the benefit of the organization.

A few weeks before that, Henry Eyring, a religious leader spoke of how parents and other leaders should help youth recognize their God-given gifts with which they were born.

I had great parents, but during my difficult teen years, I felt that they were continually criticizing me.  My dad told me once he thought that I’d make a good house painter for a career.  That’s what I did for summer jobs as a teen.  I have great respect for house painters, but that was very far from my career aspirations.  I felt that he didn’t see my talents and strength.  He didn’t take the time to know me.  Looking back, I think this contributed to my issues with depression and low self-esteem that I battled much of my life.  Perhaps that’s why I was impressed by what I’ve heard and seen the last few weeks.

Looking for the gifts and strengths of others and helping them see them is important in all of our endeavors.  This builds individuals and it builds organizations.


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If People Are Our Most Important Asset, Why Aren't They on the Balance Sheet?

5/24/2012

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I gaze out the window of the law firm offices in an upper floor of a mid-town Manhattan skyscraper.  It is late evening. Civilization is aglow. Thousands of yellow and white lights in neat rows glow from other buildings.  I see the red, white, and blue lit tower of the Empire State Building.  St. Patrick’s Cathedral spires aim up at me from directly below.   I ponder how a boy from the scrub oak, sage brush covered foothills of the Salt Lake Valley has gotten to this place working on a big project at the center of world business.  It is not a feeling of pride or arrogance; it is a sense of awe at the privilege of being involved.

We are finalizing the prospectus and Securities and Exchange Commission filing to sell publicly traded bonds to raise about $700 million dollars to help construct NEXTEL’s wireless network infrastructure throughout the country.

In short, we are tempting investors to buy into our company, to invest in us, by buying junk bonds – which aren’t junk but are high risk – and have a nice high yield.

I am the director of financial reporting for the company. My team is comprised of fifteen lawyers, Wall Street investment bankers, big accounting firm auditors, and other NEXTEL executives.

The prospectus is meant to inform potential investors everything they should know about the company: its advantages and strategies in the marketplace, its competition and others risks, its assets, liabilities, and capital structure.  However, it doesn’t say one thing about the company’s most important asset—the one that would have the greatest impact in its chances for success.

In this 250-page document filled with small-font information, the people of NEXTEL are not mentioned once!  There’s nothing on the balance sheet that reflects the value of people: only cash, investments, other current assets, and the value of FCC radio licenses.  In all the narrative verbiage, nothing is said about the people, and how they might contribute to–or detract from–the bonds being a great investment.

In his landmark business management book, “Good to Great,” Jim Collins says that getting the right people on board is absolutely crucial to a great company.  People come before market analysis and strategy. 

That isn’t just a touchy feely, namby pamby, sweet loving thing to say – it is hard core, hardnosed, bottom line financial smarts.

John Diebold, chairman of the worldwide firm Diebold Consulting, said this:  “It would be hard to find a corporate annual report in (the US) that does not state ‘Our most important asset is our people’- yet our accounting rules make it literary impossible to reflect this on the balance sheet, and we have just completed a decade in which business after business in the US has flagrantly ignored its reality in part because this is not the way we ‘keep score.’"

This lack of appropriately valuing people in reporting often translates into decision making and daily treatment of people that hurt business operations.  This neglect weakens the bottom line.

In his book “are you a C.E.O. or a P.O.W. ® (now registered with a federal trademark  Tom Cantrell), administrative law expert in human resources matters  states, “If people managed their financial resources as they do their human resources, they'd be broke within a month and in federal prison.”

Fortunately, there are enlightened business leaders who know better than to waste their number one most important asset.

Recently I had lunch with my little brother who is six inches taller than I.  He runs a very successful home mortgage business on Bountiful, Utah’s Main Street.  He’s a people-oriented person.  We bought Philly-cheese sandwiches from Vito’s, a famous lunch spot in Bountiful, and walked up and down Main Street admiring artists at work for the annual sidewalk chalk art festival.

As we strolled and admired, Kay told me how his ten employees decided together a couple of months ago they’d all read the “Hunger Games” book. Then, Kay agreed that if the office met certain revenue goals, they’d take an afternoon off and see together the “Hunger Games” movie.  They did.  This is simple, but valuing people and doing the little things that makes them feel valuable yields greater profits.

Really understanding the unique skills, talents, and career goals of each employee, mentoring and coaching, investing in training are crucial things to maintain and enhance our most important asset.

Each of us has the potential of impacting the success of our organizations through properly valuing the people.  It doesn’t matter if the human capital of our organization is not reflected on our company’s balance sheet.

Regardless of our perspective—whether doing business from a Manhattan skyscraper, Bountiful’s Main Street, or anywhere in our great country, we can make our organizations more successful by valuing people.

Our people are our greatest asset—despite what the accountants say! 


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    Owen Ashton is an author, inspirational speaker, and mental health advocate as well as a CPA and former corporate financial executive.

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