PEOPLE

Core Group

 

To become a STAR – a Leadership Success – a manager “must surround her/himself with exceptional people”.[i]  Bus - double deckerStanford University Professor Jim Collins[ii] studied 1435 Fortune 500 companies and concluded that getting “the right people on the bus” was key for sustained long-term success. Although the Stanford study focused on larger public companies, the concepts can be applied to organizations at various stages in their evolution.

As a company grows, many levels of organization will be needed with the “5 P’s” (People, Process, Product, Personality & Performance) applied to each segment / department.[iii] This article focuses on emerging growth companies and the formation of a CORE GROUP of key employees who will impact the future direction of the enterprise.

Organizational Evolution 2The greatest risk of failure for any company is the transition from an entrepreneur-centric organization into a professionally managed organization → the emerging growth sector.

Although commonly classified based upon revenue size, the real characterization of an Emerging Growth Company should be measured in its evolution from a strict entrepreneurial culture into an organization that relies on professional managers, systems and structures to guide its progress.[iv]

In the beginning, “Mom & Pop” start-up a business and control everything.   As the initial concept takes hold and revenues grow, many entrepreneurs adopt what Jim Collins has labeled as the “Genius with a Thousand Helpers”[v] management approach based upon their vision and driving force. The people these small business owners put on the bus tend to be:Charge of Light Brigade 2

  • “Just like me” with similar personality traits and strengths;
  • “Good soldiers” who wait for direction from above and then follow orders; and/or
  • Individuals Proficient in differing technical skills to handle specific tasks and responsibilities depending on the nature of the business.

This type of entrepreneurial organization can be successful for a period of time, but eventually the size of the enterprise, complexity of the decision-making process, increased competition and/or changes in the business environment present challenges necessitating changes in the culture and management practices – no matter how brilliant and capable the founder is! Professor Collins states “Great vision without great people is irrelevant.”[vi]

Unfortunately, the “right people” to successfully lead the company and support its growth into the Emerging Growth category are frequently NOT the ones who were recruited in the earlRR Tracks Croppedier stages. The organization still needs a visionary CEO to drive the bus, but generalists with a diversified background, knowledge of the business and a wide range of talents (vs a cadre of technicians) will give the business its best chance of success in capturing new opportunities and adapting to changing customer demands, economic factors, etc. Getting these “right people” on the bus provides meaningful executive-level input and gives greater latitude than relying solely on the entrepreneur’s single track vision and management style.

5 Finger TeamAt this threshold, the enlightened CEO / Founder will assess his/her “key” employees and recruit additional talent to create an Inner Circle of 5 people (limited for effective interpersonal management) who can be trusted implicitly for honest assessments, to speak their minds openly with differing opinions and perspectives and then to unequivocally support the ultimate decisions as they are implemented.

To create a GREAT organization, the CEO will surround his/herself with individuals who demonstrate natural leadership and possess the characteristics discussed below. This will cause others to respect and look-up to them for guidance.

The technical specialists will still provide value to the company, but generally are not geared to contribute effectively in the Core Group. Functions – including but not limited to – the Chief Clinician (Quality Assurance), Chief Accountant (Controller), 3rd Party Reimbursement Specialist, Risk Manager, Chief of Information Services, Legal, Tax Accounting and Human Resources tend to focus on the details instead of the BIG PICTURE. The personalities of individuals who gravitate to these positions and do well with these responsibilities generally have a strong detail orientation and place a high priority on compliance. They make “good soldiers”, following the lead of and helping the strong “genius”, but are less likely to contribute insightful, ground-breaking initiatives to impact the direction of the company.

CREATIVE: The Core Group should be comprised of people who consistently Challenge the status quo by asking “Why?” or “Why Not?” and are Comfortable “thinking outside-the-box”. They find a way to get the job done with a “Yes! Attitude”[vii] and positive Can-do approach[viii] to problem solving.

CULTURE CARRIERS: This group molds theon-going culture for the organization but should also value “where we’ve been”Winning is a Habit and carry elements of that culture forward. It is important to create a Winning Culture and celebrate success. Coach Lombardi[ix] stated: “Winning is not a sometime thing; it’s an all time thing.   You don’t win once in a while, you don’t do things right once in a while, you do them right all the time.” This philosophy is a cornerstone of a GREAT organization.

CUSTOMER CENTRIC: There are many different types of customers Customer Centricwithin an organization. In health care, the ultimate “customer” is the patient, although 3rd Party Payers are another important customer. In Senior Living, that customer is generally called a resident, but the resident’s family should also be considered a customer. It is important that the Core Group understands that this is not just a slogan for sales and marketing, but takes active steps to ensure that everyone in the company embraces the concept.

The same concepts should be applied to internal customers of corporate support departments to avoid the “tail wagging the dog”. At every level, employees should be reminded that their jobs only exist because of their customers and encouraged to maximize customer satisfaction by anticipating their “unrecognized needs”[x] and then delivering more than the customer expects.[xi]

COOPERATIVE: Core Group members should be self-sufficient, but this is not a place for a “lone wolf” or an egomaniac. Small businesses are frequently started by several “partners” and/or investors → often with differing skills and variations of the shared vision. As the venture grows, TEAM PIXone person typically emerges as the dominant leader to drive the business forward as the CEO. It is not uncommon at this stage – transitioning into a mid-size organization – for a “disconnect”[xii] to occur between the original founders. Gaining their collective Cooperation may be a challenge with each having their own group of loyal followers.[xiii] It is OK for the “right people” in the Core Group to be competitive, but they must rally behind and unequivocally support the emerging CEO and his/her vision and objectives. They must respect the opinions and efforts of others and be willing to work in Coordination with them or “GET OFF THE BUS!

Another challenge is related to the saying that “knowledge is power”. The term POWER was not listed as a key to successful leadership in the “5 P’s” presentation[xiv] because it is an anathema to a GREAT organization when employed by individuals. The Core Group must pull together and share information → they must function as a TEAM that the rest of the organization can emulate.

COMMITTED: Individuals shouldn’t be allowed on the Core Group “bus” unless they are committed to “get it right”.   For this group, it’s not a job → it is a calling! In their words and actions, they Communicate that they truly Care about making the organization, its products and services and dedication to the customers the best they can possibly be. They must believe that there is “always room for improvement” and take aggressive steps to foster Continuous process improvement throughout the company.

In earlier stages, staff Commitment might be characterized by personal loyalty to a leader.[xv] However – in “Good to Great” Companies – the Core Group of key personnel, while retaining consistent and unquestionable loyalty to their “boss”, are driven by a Commitment to the organization’s underlying ideals and principles and develop “unwavering faith” that they “can and will prevail in the end, regardless of the difficulties”[xvi]. This higher level of informed and shared Commitment creates a business that is stronger and more resilient than any one individual.

Jim Collins found that the “right people will do the right things and deliver the best results they’re capable of …”[xvii] and naturally build the winning culture and work ethic in the “Good-to-Great” companies. With this level of commitment, Collins also found that “the best people don’t need to be managed. Guided, taught, led – yes. But not tightly managed.”[xviii] This leads to a highly efficient organization and a rewarding experience for the members of the Core Group.

Win – Win!

5 Cs - Core Group

 

 

[i] “5 P’s of Leadership Success”: People, Process, Product, Personality, Performance, published on the Progressive Retirement Lifestyles Blog: http://wp.me/pCemc-hx

[ii] “Good to Great”, Jim Collins, 2001.

[iii] This will be discussed in detail in a subsequent segment of the “5 P’s” series.

[iv] I once worked in a $100 million public company that employed the “Genius with a Thousand Helpers” approach and in many ways was still run as a “Mom & Pop” operation when I arrived. That company would have been dissolved and assets sold off by the lenders if we had not been able to implement the systems and structure to allow a professionally managed operation. As Professor Collins discussed, we had to recruit some new people to get on the bus, get some existing people in the right seats and get the wrong people off the bus in this process.

[v] Collins, op. cit., Chapter 3

[vi] Ibid.

[vii] Jeffrey Gitomer’s “Little Gold Book of Yes! Attitude”, December, 2006.

[viii] Many of these technical specialties are more geared to tell management why they CAN’T do something; spelling out the risks, limiting regulations, etc. that impact a proposed corporate action. The Core Group must MANAGE these risks, but not allow them to exercise a strangle-hold on effective decision-making!

[ix] Coach Vince Lombardi was one of the best & most successful head coaches in the history of the National Football League. He is best known for coaching the Green Bay Packers to three straight and five total Championships in seven years, including the first two Super Bowls.

[x] “PEAK, How Great Companies Get Their Mojo from Maslow”, Chip Conley, 2007

[xi] Ibid.

[xii] Some are less willing to “dedicate their entire life” to the enterprise, become satisfied with the size or earnings level achieved, disagree about local, regional or national growth strategies, taking on new risks with geographical or product line expansion, or desire a quicker and/or more defined “exit strategy”.

[xiii] Blind, personal loyalty to competing leaders with different personalities and agendas is often found in early-stage ventures. This is similar to the loyalty shown to an Omnipotent Leader In the “Genius with a Thousand Helpers” organization.

[xiv] “5 P’s of Leadership Success”, op. cit.

[xv] Collins, op. cit., “Genius with a Thousand Helpers”

[xvi] Collins, op. cit., Chapter 1

[xvii] Collins, op. cit., Chapter 3

[xviii] Ibid.

“STOP – You’re not supposed to . . . !”

A staff member is walking across the lobby and sees Mr. Smith trying to open the front door and exit wman with walker at doorith the aid of his walker.   The following scenarios illustrate 3 different approaches to this situation[i].  In each case, the resident receives a message that may be very clear or more subtle, but conveys information about the community’s culture and  resident management philosophy. This can impact both the resident’s well-being and the perceptions of visitors who observe the encounter.

1)   You Can’t:

The staff member yells “STOP” as she runs to the door.  In a loud voice, she then asks Mr. Smith “What are you doing?” telling him that he is not allowed to go “out there” alone.

Maybe the resident simply wanted a breath of fresh air or to enjoy the sunshine for a few minutes[ii].  Regardless, this approach generally leads to either a confrontation or total submission by the resident.  The first is reminiscent of the “Mother, Please…” scenario with the resident even becoming combative because he is being told what he CAN’T DO!  The other response can be just as devastating because a flicker of independent thought and action has just been snuffed out!

2)   You Shouldn’t:

In the second scenario, the staff member walks expeditiously (but doesn’t run) to the door and greets Mr. Smith there.  She opens the door for him while counseling that he should never try to open the door by himself.  She warns him that he might get hurt and should always ask a staff person for assistance.  She was cheerful, upbeat and walked away thinking: “I’m glad I walked by when I did because I got a chance to do something nice for Mr. Smith.  I’m a good person and good employee!”

Unfortunately, her good intentions were off the mark and Mr. Smith received a very different message.  He just had his frailties emphasized and made to feel disabled with the reminder that he is no longer capable of “even opening a door for himself”.  All he heard was that he shouldn’t try to do it himself and probably never even heard or internalized that the staff would be happy to help him when he wanted it.  These may even contribute to feelings of being “trapped” and isolated in the senior living community.

3)   It’s OKAY:

As an alternative, the staff member could greet Mr. Smith and begin to engage him in conversation while walking toward the door.  (e.g. “Hey, Mr. Smith.  How are you doing this morning?  Boy, it sure looks cool {rainy, hot, etc.} out there today.”) The employee then has two options:

  1. Ask him: “Can I give you a hand with that door?”  This enables the resident to preserve dignity by being offered a choice that can be graciously accepted.  For ladies, I generally add something like “my Dad always taught me to be a gentleman and it’s my pleasure to open the door for you.”  The act of opening the door becomes a courtesy instead of a necessity.
  2. Continue the conversation through the door.  This is the most subtle approach as the staff person is able to effortlessly hold the door open for the resident without making an issue of it.  This has taken a couple of minutes of the employee’s time but been a great investment in resident relations.

The employee’s response to this situation[iii] is a combination of the community’s culture and the individual’s own concepts and beliefs.  Both evolve over time and are influenced by training (e.g. “soft skills”), policies & procedures, stated management philosophies, and the personality of the people involved.  Creating a culture that PROMOTES ON-GOING INDEPENDENCE[iv] for the residents will have a direct impact on the type(s) of people who choose to move into the senior living community.

In the next segment, we’ll explore how the design decisions of the Architect and Management support or conflict with the desired cultural perception.  PLEASE SUBSCRIBE {by clicking on the “Sign me up!” button at the bottom of the right hand column} to make sure you don’t miss any exciting installments.


[i] In each example, it’s assumed that this isn’t an outside entrance to a secured memory care unit or skilled nursing facility and that Mr. Smith is mentally competent and not at risk for elopement.

[ii] Recent studies have shown some potential of benefits from daily exposure to natural light in delaying the onset and/or effects of Alzheimer’s disease.

[iii] Note:  each of these scenarios is considered positive because the employee recognized the resident and intervened instead of simply continuing to walk past.

[iv] This is a basic tenet of the Progressive Retirement Lifestyles program.  You may contact Art Carr at 615-414-5217 or art@progressiveretirement.com to learn how these concepts may be applied to your organization.