Effective Communications: Myths And Realities.

Lately, I have been thinking a lot about the Chevrolet Nova.  Not because it was a classic automobile, but the myth of its poor sales record in Latin America.  You may have heard the story.  Allegedly, the Nova did not sell well in Latin America because translated into Spanish, the word Nova means "no go."  The story is false, of course, but it serves as a useful metaphor for the perils of poor communications, especially the concept of speaking past one another.  This is a classic situation, where one's message is totally misconstrued by the other.  I suppose I am thinking more about this issue as it is prevalent in the culture.  It is also an issue when communicating with clients, colleagues, friends, and family.  

Closer to home, I had a discussion with one of my colleagues, whereby I interpreted his comments to be completely opposite of his intended message. Furthermore, he was taken aback, shocked even, by my negative reaction.   To be fair, he could have been more concise and framed his message better. And, I could have asked a few more questions for clarification.  The situation could have escalated beyond control, but our client arrived for our meeting.  This gave us time to focus on other matters and decompress.  Subsequently, we worked through the issue and addressed our failure to communicate.

In a recent discussion with another consultant, I was asked what I thought was the biggest challenge facing businesses today.   Almost by reflex, I told him it was about messaging:  is my brand message resonating with my clients?  Do I fully understand the problem my client is looking to solve?  Am I tuned into the big message the market is sending?

The NFL player protests is a perfect example of this phenomena.   In this case, it appears that the biggest loser is the NFL Brand.  Brands are fragile: consider the plight of Arthur Andersen which was ensnared in the Enron scandal during the recession of 2001-2002. The common wisdom at the time was that Arthur Andersen could not be trusted and as a result, their clients went elsewhere. When the dust settled, Arthur Andersen was exonerated, but the damage was done.  Arthur Andersen is out of business.   Andersen Consulting lives on, however, re-branded as Accenture.

A Ted Talk regarding skills required for employment in the future caught my attention.  The speaker proposed that soft skills would become more critical for employment, particularly communications. This makes sense to me.  As more and more processes become automated the value of interpersonal skills will become more important.  Communications skills are the heart of interpersonal skills.  

Stephen Covey speaks to the importance of understanding the other's point of view.   In his book The Seven Habits of Highly Successful People, Covey agrees that communication is the most important skill set and that listening is the key to effective communications.  He notes that "most people listen with the intent to reply, not to understand."

Covey says that "because you so often listen autobiographically, you tend to respond in one of four ways:"

Evaluating:	You judge and then either agree or disagree.
Probing:	You ask questions from your own frame of reference.
Advising:	You give counsel, advice, and solutions to problems.
Interpreting:	You analyze others' motives and behaviors based on your own experiences.

With kudos to Napoleon Hill, when coaching my consultants I espouse the value of asking why, at least three times, more if necessary.  By asking for clarification and the basis of one's beliefs, eventually, you will arrive at the root of the issue to begin formulating a viable course of action. Focus on understanding the message you are receiving before offering your opinion.

What about marketing communications?  Does your brand message resonate with the customer? Whether you are a job seeker looking for a full-time situation; an independent consultant looking for your next gig; or a business trying to attract new customers; your message must be clear and concise. Often referred to as a value proposition, or positioning statement, an effective brand message will lead the prospect into a discussion about your ability to solve her problem.   No matter how brilliant you think your message to be, you must continue to validate its effectiveness.  Ignore this message at your peril.

Thank you for visiting my blog.

Your feedback helps me continue to publish articles that you want to read.  Your input is very important to me so please leave a comment.

Jim Weber, Managing Partner

ITB Partners

Jim.Weber@itbpartners.com

Author of: Fighting Alligators: Job Search Strategy For The New Normal

Current Assignments

1. COO- Atlanta-based Casual Dining Restaurant Company - New

2. Controller - Atlanta-based Consumer Products - Digital Company - Completed

3. Director of Biz Dev, Atlanta-based B2B Professional Services Company:    Completed

4. Payroll-Benefits Manager, Atlanta-based Retail Company:  Complete

5. Senior Accounting Manager – Atlanta-based Manufacturer. Complete

6. Controller - Atlanta-based Restaurant Company: New

7. Outplacement Assignment - Atlanta-based Manufacturer:  Complete

Making Job Search/Recruiting & Selection More Efficient

Monica is an accomplished professional coach I met through a mutual friend.  Our paths crossed again this week at a presentation on artificial intelligence for job search. We had a few minutes to talk before the meeting, so she updated me on her current project.  Sponsored by one of the more prestigious local universities, her assignment is to make job-search/recruiting and selection more productive. When I first talked with her about this project, earlier in the year, she was beginning to frame the analysis. Now, she has an appreciation for the magnitude of her challenge. Monica suggested that we meet again later in the week for a follow-on conversation. We scheduled a meeting Thursday afternoon.

As we were settling into our conversation she told me about a rather odd luncheon meeting she just finished. She witnessed some unprofessional behavior by the attendees which indicated either cultural issues with the employer, or behavioral problems with this team. It was an interesting way to start the conversation as her encounter may have identified a part of the problem she’s working to resolve.

After that introduction, we got down to business. Monica and her colleague, Gina, began with an open-ended question to initiate my thoughts. I reminded them that my perspective is that of an executive recruiter with 20 years of experience placing senior level executives.  I began by saying that my average search takes 90 days from start to finish. For senior-level searches, it could be as much as 120 days. I explained that most of this time is managing logistics, as I typically have the ideal candidate in front of my client within 2 to 3 weeks.  The rest of the time is related to the client's internal process.

Scheduling meetings, whether by phone or in person is a monumental task. The time involved grows exponentially as more people are included in the process.  Monica's colleague asked about using electronic scheduling tools.  I told her about a current situation where a prospective search client was trying to schedule a four-person conference call. It took two weeks to agree to a time, even though we were using a scheduling tool.

My take on the issue is that competitive pressure has shrunk the workforce so dramatically that people involved in the hiring process are stressed for time and resources.   This inhibits efforts to reduce the recruiting and selection cycle. Reducing administrative overhead, in my opinion, has led to other negative attributes like poor communications among the employer recruiters, third-party executive recruiters, and the candidates.

I believe there’s a competency component in play as well. It's been my experience that most hiring managers and support staff have never had formal training to conduct an interview or to make effective hiring decisions. Again, the problem is amplified as more people become involved in the process.

Even more fundamental, employers often don’t know which skills and experience are needed. Although job descriptions are prepared for prospective employees, they often don’t capture the primary objective of the position.  Job Descriptions are usually created by a committee who may not understand the job function. If they do understand the job function,  they are unable to effectively communicate the position requirements.  "When I meet the right candidate, I will know it," is closer to the norm.  This lack of clarity adds to inefficiency.

It seems to me that employers who manage their cultures pro-actively do a better job of recruiting and selection, however, their timeframe may be longer.  They know that the cost of a bad hire is greater than the benefit of a shorter time-to-hire.  I joked with Monica that with few exceptions when my candidates inquire about a client's culture the best I can say is that it is in a state of flux. The marketplace is volatile, which makes it difficult to create a healthy, supportive culture.

I applaud Monica and Gina for taking on this project.  It is important and necessary.  In my experience, the recruiting and selection cycle time have not changed much. My view is that the time involved to recruit a new hire is symptomatic of the challenges faced by the modern company.  It was interesting that we did not discuss metrics like cost per hire, cost of turnover, or retention rates. My final thought for Monica was to think in terms of a matrix as the characteristics of the hiring decision is different for each function and level in the organization.

Thank you for visiting my blog.

Your feedback helps me continue to publish articles that you want to read.  Your input is very important to me so please leave a comment.

Jim Weber, Managing Partner

ITB Partners

Jim.Weber@itbpartners.com

Author of: Fighting Alligators: Job Search Strategy For The New Normal

Current Assignments

1. COO- Atlanta-based Casual Dining Restaurant Company - New

2. Controller - Atlanta-based Consumer Products - Digital Company - Completed

3. Director of Biz Dev, Atlanta-based B2B Professional Services Company:    Completed

4. Payroll-Benefits Manager, Atlanta-based Retail Company:  Complete

5. Senior Accounting Manager – Atlanta-based Manufacturer. Complete

6. Controller - Atlanta-based Restaurant Company: New

7. Outplacement Assignment - Atlanta-based Manufacturer:  Complete

Working With PEGS: What You Should Know

This week ended on a sour note as one of my consultants lost a contract with one of our clients.  It wasn’t his fault as the client company did not realize that their Private Equity owner had a resource to fill their need.   Unfortunately, those situations are not uncommon.  It is a fact of life in the New Normal.

As I have written so much about my work with Private Equity Groups (PEGs) and their portfolio companies it makes sense to explain what they do and how they operate.  PEGs have been reshaping American Industry across all segments.  They are significant to the job market.   It is important to understand how they manage their selection process and what they look for in new hires.  If you are not currently working in a PEG Portfolio Company, you probably will before the end of your career.

So, what is a Private Equity Group?  A PEG secures its funding from high net-worth Individuals to make investments in undervalued small to mid-cap companies.  They will generally take a controlling position in the target company up to 100% ownership.  Their goal is to improve results in a three to five-year period allowing them to sell at double their investment, more or less.   They may invest in companies with significant growth potential but having difficulty raising capital.   PEGs have been known to invest in companies whose owner wants to cash out or to buy out other investors.   Their fundamental investment goal is to find companies that can benefit from their expertise and generate a significant capital gain after a defined holding period.   PEGs are looking to grow revenues, improve productivity (read systems and processes) and eliminate waste.

Types of PEG Transactions

•        Turnarounds
•         Public to Private
•         Divestitures (Carve-Outs)
•         Family Business Exit Strategy
•         Funding emerging brands needing capital

If the target company didn’t have a fast-paced, high-energy culture prior to the PEG involvement, it will afterward.  This is especially true early on as the two groups learn to work together.   The level of communication and thirst for data by the PEG is intense.   Redundant, unnecessary, or functions better handled by a third party are eliminated resulting in a more streamlined organization.  The remaining team members are expected to pick up the slack.   Accountability is expected.  If the CEO cannot meet his objectives he will be replaced.  So, when looking for people to hire a premium is placed on people who are self-sufficient, self-reliant, and can tolerate the stress of a high-intensity organization.   Is this that much different from most major brands?

The PEGs I have worked with are directly involved in hiring the CEO as one would expect, as well as the CFO.  Depending on the nature of the transaction, the CEO may or may not stay on after the investment, however, the CFO is usually replaced.   This is not uncommon for most acquisitions as the new owner wants “their people” in key positions.   The first task for the new CFO is usually to get control of cash flow and to install a KPI Dashboard.  Other hires are the responsibility of the Executive Team with the customary courtesy interviews by the PEG Executive responsible for oversight. 

PEGs place a high value on specialized experience when recruiting talent for their Portfolio Companies.  They do not have time or interest in on-the-job training.  They seek people with solid educational credentials, whose careers include work with respected brands.  Industry segment experience is the base-line.   If the Portfolio Company is a small to mid-cap brand then experience in a small to mid-cap company is required.   There is a preference for people whose careers are ascending.  Sure, there may be a preference for someone who is younger and hungry, however, experience and success trumps age.   A recent history of short-tenured situations is a big red flag.  As with any hiring authority, there may be certain quirks to their selection process.  One client, disqualified people who had stepped out of the corporate track to try their hand in an entrepreneurial venture; whereas other clients valued that kind of experience.   In most respects, a PEG’s selection process is similar to any other well-managed company, except for the specific experience they may require.

Thank you for visiting my blog.

Your feedback helps me continue to publish articles that you want to read.  Your input is very important to me so please leave a comment.

Jim Weber, Managing Partner

ITB Partners

Jim.Weber@itbpartners.com

Author of: Fighting Alligators: Job Search Strategy For The New Normal

Current Assignments

1. COO- Atlanta-based Casual Dining Restaurant Company - New

2. Controller - Atlanta-based Consumer Products - Digital Company - Completed

3. Director of Biz Dev, Atlanta-based B2B Professional Services Company:    Completed

4. Payroll-Benefits Manager, Atlanta-based Retail Company:  Complete

5. Senior Accounting Manager – Atlanta-based Manufacturer. Complete

6. Controller - Atlanta-based Restaurant Company: New

7. Outplacement Assignment - Atlanta-based Manufacturer:  Complete

Dealing With Rejection

Rejection hurts.  We hate it.  It's to be avoided.  But why?  Why is rejection so painful?  We've all experienced rejection in one form or another.  Consider the following situations: not being called on in class; not being chosen to play on teams; rejected for a date; rejected by college admissions; rejected by a club; not being hired for a job.  You get the idea.

Everyone endures rejection to some extent or another. It’s part of the human condition.  But, how many people have taken the time to study rejection, or more to the point, why they were rejected?  To better understand the fear of rejection, I went to YouTube to research the issue.  I was surprised to find a large amount of material on the subject.

Marissa Peer says that human beings have an intense need to be connected.  "We have a strong need for acceptance.  It is part of our genetic composition.  Affiliation with the tribe or the clan was our means of survival. Fear of rejection is about breaking the bonds we depend upon for survival. Connection equals survival.  You need the group to watch your back. That is why banishment was considered punishment worse than death." 

Of course, the kind of rejection we encounter is not so drastic.  I am thinking about rejection related to job search or finding work.  My focus on rejection is related to the risk of losing one's livelihood, a threat to our economic survival.

The fear of speaking in public is the fear of rejection.  The Stockholm syndrome is another example which demonstrates our need for affiliation.  Hostages would rather conform to their captors' values than to risk disconnection entirely. We have an intense need for acceptance, human beings are very fragile in this respect.

Jia Jang spoke to his fear of rejection affecting his career.  To understand and control this fear, he set out to experience 100 days of rejection.  His goal was to desensitize himself from the pain of rejection and overcome his fear.  He learned that the magic word is 'why'?  Asking 'why' began a dialog that improved his understanding.  If you can know why you were rejected you may come to learn that rejection isn't personal. If you were rejected for a certain situation, there is nothing preventing you from inquiring about another opportunity   Or, you could ask for a referral.  Beginning a dialog creates an opportunity to address the doubt.  Jang reminds us to "consider that people who changed the world did not let rejection define themselves. They overcame it."  His inquiry led to his book, "Beat Fear and Become Invincible."

Laurie Petrou says, "change the paradigm."  She suggests that one should aim for a goal of 100 rejections a year. "Turn the paradigm on its head,"  Ms. Petrou says, “it’s like going to the gym, work off fat and increase muscle mass.  Consider rejection as a critique, not just criticism. Don’t reject rejection, as your best work won't get better." 

"Rejection is the rungs on the ladder to success.  The more you face rejection, the better you become immunized to its effect."

I am reminded of an interview with an insurance company salesman who said he loved rejection as it put him one step closer to success.  That was back when you could use your telephone to make cold calls.  It was called 'dialing for dollars.'  Cold calling via telephone was still prevalent when I began my career as an Executive Recruiter.   It was very easy to reject the caller. Just hang up.  Cold calls are archaic, they don't work so well anymore.  In the days of caller ID and call-blocking, people don't answer the phone for unrecognized callers.  That is why we have voice mail.  But, in those days it was a numbers game.  Everyone knew that for every 10 or 20 phone calls, you could generate one viable prospect leading to a sale.  So, my interviewer knew that if he just kept calling, eventually he would talk with a viable prospect.  That paradigm got him past the pain of the rejection he had to endure.

Unless you develop a strategy to nullify the pain of rejection, success will prove to be difficult. Remember it isn’t personal.  Consider rejection a gift that you do not wish to take. No one can hurt you unless you let them.

Thank you for visiting my blog.

Your feedback helps me continue to publish articles that you want to read.  Your input is very important to me so please leave a comment.

Jim Weber, Managing Partner

ITB Partners

Jim.Weber@itbpartners.com

Author of: Fighting Alligators: Job Search Strategy For The New Normal

Current Assignments

1. COO- Atlanta-based Casual Dining Restaurant Company - New

2. Controller - Atlanta-based Consumer Products - Digital Company - Completed

3. Director of Biz Dev, Atlanta-based B2B Professional Services Company:    Completed

4. Payroll-Benefits Manager, Atlanta-based Retail Company:  Complete

5. Senior Accounting Manager – Atlanta-based Manufacturer. Complete

6. Controller - Atlanta-based Restaurant Company: New

7. Outplacement Assignment - Atlanta-based Manufacturer:  Complete