Lessons in Management: McDonald’s During the 1970’s

Posted by Jesse Kliza in Business, Leadership, Management

Late last week I had the privilege of talking with someone that opened and ran numerous McDonald’s in the 1970′s.Two things he said really stuck out to me.  One speaks of his own innovative management practices and the other of the leadership of McDonald’s CEO at that time (Fred Turner).

He told me about one McDonald’s he ran in particular, and how he had problems in that area with many of the younger employees.  He came up with a hiring strategy in which he would hire half younger/teenage employees, and half nannies.  What he found was that the nannies would naturally organize, and manage the younger employees.  He said it was so successful that he rarely had to deal with disputes, or really run the store himself.  He would come out of his office, and the nannies that were working would immediately tell him to relax, and assure him that they had everything under control!

What an innovative management strategy!

He also told me something that Fred Turner said to him, and the other 48 managers at the time that were out in the field, growing the McDonald’s business, and opening stores all over the world.  He told them: “When you guys are out in the field, you are the CEO. You make the decisions, and you’ll be right 75% of the time.  And that’s the best rate in the industry.”

Fred empowered his employees to make decisions and he encouraged and inspired them to be the best.

I love hearing stories like these.

Game Changing Business Application Design…Anywhere?

Posted by Jesse Kliza in Business, Collaboration, SaaS

One of the things I’ve been thinking about more and more lately, is somehow enabling the next generation user experience for business software.

For far too long, business applications have been built for businesses, not for the people in the businesses that use them.

Rather than approaching the design with the goal of enabling the best, most enjoyable experience for the individual, many ISVs have kept their designs inside the box, and focused solely on the needs of the business.

I may be missing something (and I’m sure I’ve not seen nearly everything), but I’ve yet to see an application that really breaks the mold. One that presents data in a totally new way, or enables a totally new experience for the user. Or one that incorporates some level of fun and enjoyment in the mundane tasks of creating service tickets, accounts, invoices, activity notes, meetings…etc.

If we look at sites/apps such as facebook, twitter, youtube and others, the sites that’s user bases have grown virally at an incredible pace, the three words that immediately come to mind are: personal, networked, and addictive

Personal – All of the above sites present information to the user that is personal and important to the individual user. This is similar to dashboards we see in many business apps. However, that is one single place in the application that is personal. Some applications also provide themes, but not to the extent that some of the social networkings sites provide customization of the overall look.

Networked – All of the above are web based applications, that leverage their network of users to create their core value. This is something I’ve written about in the past, and now Salesforce is just beginning to take this to the next level with their new Salesforce-to-Salesforce capabilities.

Addictive – Facebook, Twitter, YouTube… they are all addictive. They have something that makes people want to use them. However, that something can be different for different people, but I venture to say that what ever that something is, it is a direct result of those applications leveraging the network of users as the underlying core value of their offering.

Aside from Salesforce’s recent moves, another great example that is more on the design side is Entellium, and their Rave CRM product. Paul Johnston, Entellium’s CEO talks about the “Gamer Influenced Design” approach here on his blog.

Phil Wainewright also talks about Rave, and the concept of gaming elements applied to business software here.

I’d love to hear what others think, and if you can point me in the direction of some applications that you think are truly breaking the mold, I’d greatly appreciate it.

Creating a Culture of Innovation: Is YOUR Company Serious About Innovation?

Posted by Jesse Kliza in Business, Leadership, Management

As part of my series entitled “Creating A Culture Of Innovation”, I highlighted an approach back in August, that I’ve come up with to begin doing just that.

Here’s a great list of questions to ask the first line employees in your organization, to determine whether your organization is really serious about innovation being part of it’s culture. These questions are slightly modified versions of the questions outlined by Gary Hamel in the recent interview with McKinsey and Co.

1) “How have you been trained as a business innovator? What investment has the company made in teaching you how to innovate?”

Yes, this should be filtered down all the way to your companies lowest level employee.

2) “If you have an idea, how much bureaucracy do you have to go through to experiment with it? How long is it going to take for you to get a small percentage of your time and/or a relatively small amount of experimental capital to test your idea? Is it a matter of months, or is it very easy for that to happen?”

This falls in line with the “Nurture” step in my SANE approach. Companies that are serious about innovation being a part of their culture have systems, and processes in place to help nurture ideas. The build it into their budgets, and strategic plans.

3) “Are you actually being measured on your innovation performance, or your team’s innovation? Does it influence your compensation?”

“Put your money where your mouth is”. Companies that are serious about innovation will find ways to compensate employees for their innovative contributions, and provide incentives for continued innovation.

4) “As you look at the management process in your company, do they tend to help you work as an innovator or get in the way?”

This falls in line with the “Execute” step in my SANE approach.

Getting in the way doesn’t just mean getting involved and complicating things. It also means simply not doing everything possible to help innovative ideas that have been supported be brought to life.

Innovative Management: A conversation with Gary Hamel and Lowell Bryan

Posted by Jesse Kliza in Business, Collaboration, Entrepreneurship, Leadership, Management

I read an amazing interview with Gary Hamel and Lowell Bryan yesterday. It was one of those articles where I was constantly saying to myself things like: exactly!, that’s amazing!, thats exactly what I said to _______!, etc.

Reading it made me really excited. So much so that I immediately started talking to, and calling friends of mine, probably babbling because I was so taken up by it. I sat at home last night reading parts of the interview to my wife as we sat trying to relax in our living room.

It made me really excited because this is something I am very passionate about. It’s something that I have very strong feelings about, and in this interview I saw my own passions and positions clearly shared by others that are truly thought leaders in the space of management.

Innovative Management: A conversation with Gary Hamel and Lowell Bryan

Please, take the time to read this interview and share with me your thoughts. If you aren’t a member at the McKinsey Quarterly this is more than enough reason to join. (IT’S FREE!)

The basic premise of the discussion is that there is an ever growing need for a new managerial model, that merits the gifts of creativity, passion, and initiative and leverages those gifts in each and every employee.

Here’s just a small sample:

“In terms of managing creative-thinking people, you have to separate the work of managing from the notion of managers as a distinct and privileged class of employees. Highly talented people don’t need, and are unlikely to put up with, an overtly hierarchical management model.

Increasingly, the work of management won’t be done by managers. It will be pushed out to the periphery. It will be embedded in systems. I think we’re on the verge of what I would call a postmanagerial society. The idea that you mobilize human labor through a hierarchy of overseers and bureaucrats and administrators is going to look extraordinarily antiquated a decade or two from now.”

Also, if you haven’t read my post from a few months back entitled: Creating a Culture of Innovation: The SANE Approach, I’m sure you will see many parallels.

John Moore posted a great overview of Gary Hamel’s new book, The Future of Management.

Tory Gattis of OpenTeams also posted some additional excerpts from the interview here as well.

Creating a Culture of Innovation: The SANE approach

Posted by Jesse Kliza in Business, Entrepreneurship, Leadership, Management, SANE Innovation

In thinking about innovation and how innovation can become a cultural trait, as opposed to something that organizations strive for artificially, I came up with what I call the “SANE” approach to innovation, or SANE Innovation.

This approach is to be used by leadership, or the individual/individuals you have made responsible for managing innovation within your organization or team. In my opinion, at the company level, this person should be your CEO or another executive. I don’t believe it is by any means their sole responsibility to innovate. I do believe however, that innovation needs an owner, a champion in your organization.

SANE = Set Expectations->Ask->Nurture->Execute

Set Expectations – Set the expectations of your team members appropriately. Let them know that you want innovation to be a core part of your culture, and not just something you talk about. Let them know that you are confident that each and every one of them has the ability to truly innovate, and that as the leader you will shoulder the responsibility of supporting them, and helping them hone their creativity and talents.

Ask – Ask them to innovate, and ask them often. Now that you’ve shown that you are serious about innovation being something that is expected from everyone, and that you are willing to help them innovate, put the ball back in their court and ask them to come up with innovative, outside the box ideas and solutions to problems. Reinforce how much you value, and expect their ideas by providing them with a system and/or process for submitting those ideas regularly. Depending on your organization, some ideas may need to be private, and reviewed by specific people, but the more ideas that are public, and accessible to everyone in your organization the better.

Also, don’t shortcut the process yourself. Be sure to submit your own ideas, and ask the rest of your organization to comment on them and give their honest opinions, just as they would with anyone else’s idea.

Nurture – Nurtue ideas and innovators properly. Make the nurturing and refinement process something that not just management is involved in. Ensure that the original stake holders in the idea maintain ownership of it, and are comfortable with their level of involvement in it going forward. The more involvement on their part the better. Taking their idea and running with it on your own, even if you at some point give them credit for it, will only create angst, and resentment. In the end your realization of “their” idea will most likely be far from what they envisioned it to be anyway, and they may not even want to be given credit for it.

Execute – Great ideas in and of themselves are worthless. It’s the execution of those ideas that counts. Make sure that when innovative ideas are identified and supported, that you execute on them to bring them to reality. One of the worst things you can do at this stage, when you have a mature idea that has been fleshed out, and that you have supported, is let the idea flounder. Make the execution of innovative ideas/concepts a priority over all things that are not mission critical to your business at the time they arise. Empower the stake holders/idea owners to execute and provide them with all the necessary support and resources needed to do so. Innovative ideas that make it to the point of approval should not become stagnant, as it undermines your entire standpoint, and devalues the worth you place on innovation in your organization.

Remember, you haven’t done anything innovative until you execute.