Archive for November, 2009

30
Nov
09

jackanape tales: the vicious cycle

It was over beer and wings, so technically it wasn’t a business meeting. Unless of course your business IS beer and wings.

During this not-a-business-meeting, my friend confided that she had “The world’s worst customer.”

We stared at each other.

“The. Worst.” she repeated.

We’ve had this conversation before.

“They keep us from being a great company,” she lamented.  “It’s demoralizing.”

She offered examples and metrics and evidence.  It was all compelling.

Just as we’d had this conversation before, she’s had it with her boss.

Her boss, he’s the President & CEO of her company.  He wants to know her plan to fill the multi-million dollar void after they part ways.

“For the record,” she says, “It wasn’t asked in a ‘Help me plan the strategy’ manner.  It was more of a ‘What the hell do you know?’ question.”

Let me get this straight, your company trusts you enough to manage this customer’s multi-million dollar project, but not enough to believe you have business knowledge?

“Yes,” she said, sounding exasperated.  “These are his control issues shining through.”

“No,” I said. “This is the kid showing the adult how open the childproof cap.”

The CEO’s question, “How do we fill the void afterward,” told the whole story.

You don’t fill the void after the fact; that’s not a strategy it’s a reaction.

It’s also counter-growth–no product development, no market development, no diversification, and no market penetration occurring.

This is the circle of Hell Dante created just for Ansoff.

I basically described the scenario as such:

“Is that about right?” I asked.

Yes.

What’s troubling is that I’ve seen this before.

No, not some dude whizzing on a kid – - you know what I meant, jackass.

Ask yourself, “Who is the enemy here?”  Is it The customer who keeps your company down? Is it the company who values the customer over the employee?

I could say something like “This is how Fight Club begins,” but that would only weaken the seriousness of this issue-even though it’s true.

It sounds trite and sophomoric, but books that rail against the way we do business, the way we treat people, the culture we’ve created, the people we’ve become; books that tempt you to tear it all down and destroy everything mankind has ever touched. Books like these exist for a reason.

The undercurrent of discontent that tugs at and sweeps across generation after generation strengthens with time.  Before long, it surfaces and becomes a tsunami of resentment and frustration.

What then?  On the precipice of disaster, when everything becomes an either/or scenario, do you trust business to make the right decision?  If the fate of all mankind rested in the hands of your company’s CEO or Board of Directors, how well would you sleep?

What does that say about your opinion of your company?  Have you ever taken the leader-member exchange test?

Let me tell you how this ends; the employee --who has all of that invaluable corporate knowledge and customer experience– she will leave.  This is a tremendous problem in American business.  Junior- to middle-level managers are leaving companies at alarmingly high rates and significant costs –financial and otherwise– to businesses.

Imagine the impact  on internal and external perception, company and departmental reputation, employee and customer stability, the impact upon work-in-progress, etc.

And why?  Because the old guard has stopped listening to their own experts. They’ve stopped respecting the customer-facing employee. They’ve forgotten that what they perceive and what others do are decidedly different.  It’s all a matter of perception.  Both views have value, but it’s easier to teach the people on the ground to understand long-term strategic thinking than it is to get senior mgmt. to remember what it’s like to be a junior, customer-facing manager.

Scoff if you like, but it really is that simple.  Consider  the 100 Best Companies to Work For list.  Now tell me why Amazon, Zappos, Google, Wegman’s, Whole Foods, and Starbucks are so popular that a single job gets a 1000 applications.  This before the economic downturn.  The answer, in part, is: A corporate culture that inspires unfettered openness, mgmt./staff collaboration, flattened hierarchies, and the valuation of employees as human beings.

We talk about Stakeholder Theory.

We talk about Transformational Leadership.

My friend, she’s wide-eyed now.

“I was just bitching,” she said.  “This isn’t business, it’s wings and beer.”

-  -  -

Two months passed and nothing changed: The customer continued being terrible.  The company continued to ignore her.  The world continued to spin.  And so she left.

Unable to get the level of support they required, the customer went shopping for someone a bit more reliable.

They called my company.

My boss asked what I thought about working with this customer.  My boss asked what I knew from my friend.

I explained the problems and said it was a bad idea.

My boss said I’d be handling the customer.  “You’ll fix it,” he said.  [Broken and Stupid are NOT synonymous]

I asked if he’d ever said “No” to a customer.

“We don’t turn down business,” he said.  “We never say no.  Never.  We say ‘Yes’ and figure out how to do it later.”

I never thought I’d loathe someone’s inability to say “No”.  But there it is.

Here’s why that terrible customer is the worst:

First, they want mindless automatons to do their bidding not free-thinking, well-educated, professionally competent subject matter experts to provide them with industry best practice support, services, and advice.

Second, they drank their own kool-aid and now overestimate the value of their organization, their product, and their ability.

So what just happened?  Let me sum up: The world’s worst customer became my customer.  Why? Because the boss who wouldn’t listen to my friend became my boss when the world’s worst customer became my customer.  It’s like musical chairs for idiots.

Let me tell you how this will end . . .

23
Nov
09

pretty, dumb idea

I saw these Coca-Cola holiday ornament-shaped bottles at the store today.

They’re 13.5 oz., sell for $1 each and fit into no cup holder ever designed.

Next time, shape the cap so they can be ornaments, Coke.

 

*photo [via]

23
Nov
09

the navy & your money

I’ve been working in the defense realm for several years now, and I’ve seen some interesting civilian business tools come to contracting. Why does this matter to you? For one, encouraging news about the Govt and taxpayer dollars is fairly hard won.

Two such tools are Earned Value Mgmt. and Six Sigma. For a very interesting tale of how the Govt is demanding more of defense contractors like ME by saving money that belongs to YOU, read this story: Deploying Lean Six Sigma within the U.S. Navy.


19
Nov
09

lego my … *ahem*

17
Nov
09

What You Didn’t Learn in the Scouts

It’s like an Urban Tracking Guide . . .

I recognize some of my own work there. Good stuff.

Seems only right to plug my buddy Rick’s blog, The Weekly Banjo.

I’m writing an article for TWB on the tactics macro-breweries are taking to win back more discerning customers.

15
Nov
09

This Week’s Lifework

Ask “Why?” . . .  and then do something to bring about positive, sustainable change.

Of course, you could just keep doing what you’ve been doing.

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Most people would rather be certain

they’re miserable, than risk being happy.

- Dr. Robert Anthony (via L’Aureola)

09
Nov
09

Really? I mean, Really?

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Every have one of those weeks when –after thinking that you’d experienced it all– you find that shit can get really weird, really quick?

 

I’ve been living that week for nearly a month (or 24) now.

 

. . . and the hits just keep on coming.

 

03
Nov
09

AT&T Hates Old People

In case you haven’t heard, once again AT&T is being sued for discriminating against its very own retirees … read about it HEREatt-logo

Yes, I know. The blog used to post crazy stories about my childhood. Now all you get are stories about Starbucks and AT&T.

All I can say is, “Watch out now, you may learn something.”  See, one of the nice things about being an MBA candidate is that I get to play armchair judge.  What follows is my ruling in the case based upon the mock trial we conducted.

- – -

Though outwardly and at first blush the case possesses the hallmarks of a disparate impact or age-based discrimination lawsuit, upon investigation of the facts the court believes neither to be accurate.  Instead, the court believes the Plaintiff’s charges of disparate impact and/or age-based discrimination are defeated by the Defendant’s claim of business necessity.

The very same negative economic situation affecting the Plaintiff(s) seeking reemployment is affecting AT&T.  As such, it is patently unfair to force AT&T to incur a greater economic burden by, in essence, expecting AT&T to serve retirees as a place of hop-on/hop-off employment.  Additionally, it is unrealistic and shortsighted to believe that the burden of rehiring 400 people would not have tremendous operational  impacts upon AT&T.  It is also shortsighted to believe, especially during the current and future similar economic downturns, that droves of retirees would not use this incident as a precedent to file comparable litigation.

AT&T has demonstrated a willingness to temporarily employ its retirees to meet business demands (Slackman, 2008).  It has also demonstrated a willingness to employ American citizen when the opportunity to do so is in its best fiscal interest.  Case in point, AT&T has sought to return 4000 jobs previously performed offshore to the US (Karpinkski, 2009).  To answer Ms. White’s charges that “it is ironic that within the time frame between the 2006 early retirement of the plaintiffs and 2008, AT&T issued a statement that they were having difficulty finding qualified workers in the US;” the investigation indicates a divorce between perception and reality.  Citing a near 50% high school dropout rate in portions of the United States, AT&T’s CEO went on to explain that

The “American public isn’t educated enough to handle customer service jobs at AT&T and probably thousands and thousands of others with all different kinds of employers, these companies will have little choice but to continue shipping jobs overseas” (Cafferty, 2008).

Additionally, the skill set AT&T is seeking and the skill set the Plaintiff(s) offer may not have been equitable, and geography may have played an important role.  As such, the irony is not the CEO’s comment but the Plaintiff’s use of this counterproductive quote.

What these employment-related examples illustrate is a company that forecasts, budgets, and manages itself to be successful for its shareholders, while also being conscientious of public opinion and the law.  Though not relevant in my ruling, AT&T has been cited numerous times for social awareness and inclusivity.  These accolades speak to its character as an organization.   Conversely, and also absent from weight in my decision, are AT&T past legal indiscretions.  The company has, as many pointed out, been successfully sued for similar –but not identical– situations.  These are NOT indicators of character, as they are situational and not applicable in this Judge’s ruling.

In cases of disparate impact, which is what the Plaintiff asserts this case to be, the burden of proof lay with the Plaintiff.  Defendants can counter disparate impact by claiming business necessity, which is what AT&T has done.  To that end, the court agrees with Mr. Hansberger’s assertion that “’employers enjoy fairly wide discretion to adopt hiring practices that they deem valuable to their organization’ resulting in laws that are ‘more proscriptive than prescriptive’ (Azera) .  The laws are written this way in order to allow employers the latitude required to run a successful business.  If the laws were written or interpreted in a highly restrictive manner, it would become impossible for employers to efficiently allocate their human resources” (Hansberger).

old-people-birdThere is a fundamental difference between what Ms. White deems the Plaintiff’s “right to pursue gainful employment after retirement” and one’s right to be hired.  AT&T’s refusal to rehire retirees does not preclude the Plaintiff’s right to pursue such employment; the two are mutually exclusive.  As Ms. White stated, the members of American society have aged and the demographic has shifted.  The reality is that this change does not favor the Plaintiff, as the change sees so-called 83 million baby boomers retiring at a hire rate than any other segment of American society (L’Allier and Kolosh, 2005).

As Ms. White asserted, “Workforce planning strategies are used to reshape a workforce in response to skill set requirement changes in response to functions of organizations changing.  Resource managers do not offer an early retirement to a seasoned worker who has the skill set needed.  This does not make fiscal sense” (Ryan).  Furthermore, Ms. Ryan goes on to claim that the “VRIP and ERP programs are used to reduce, reshape or restructCO0605_humancapfig2ure the workforce of an organization.  These retirement incentive programs are costly in the short term however,  cost savings are realized over the long term in savings of salary and benefits.  In addition, a restructure of the workforce may mean that the function requires a different skill than what the retired employee has” (Ryan).

To expect that the former employers of these retirees should be obligated to rehire them at the whim of the retiree holds potentially catastrophic economic results.  The Nation is entering an era wherein population growth is dipping below levels in the 1950’s; conversely, the work force population has held steady for two decades and is forecasted to remain steady out until 2050 (L’Allier & Kolosh, 2005).  As such, the burden of rehiring retirees while the workforce population provides suitable alternatives is a case of business necessity and common sense.

Additionally, the case possesses elements of a legally-binding business contracts.  As Ms. Tinsley argued, AT&T’s Voluntary Retirement Incentive Plan/Early Retirement Plan (VRIP/ERP) package is both voluntary and contains consideration.  ‘The consideration is something of value to which a person is not already entitled that is given in exchange of an agreement to do, or refrain from doing, something’ We believe that the consideration was accepted by Yates and many others in exchange for him resigning from his job not to return” (Tinsley).

The court agrees that, from a contractual perspective, the scenario meets all of the requirements to being a legally binding contract.  Upon acceptance of the VRIP/ERP, the retirees received consideration.  As such, the contract, whether implied or explicit, is legally binding.  In absence of available information on this case, the court assumes that AT&T did consult with its legal and human resources departments to apply lessons learned and require that acceptance of the VRIP/ERP be a legally-binding contract that forbade rehire.  The VRIP, by nature, has an Incentive that is mutually beneficial; the employee retires early with his/her benefits and pension, and the company is able to manage its workforce, personnel budget, and forecast manpower availability in relation to needs, which includes business skill sets.

Notwithstanding contractual recourse, the court agrees with Mr. Mazzocchi’s assertions the Plaintiff fails to meet the criteria established in precedent cases.  Specifically, four criteria must be met:

[…] that the [Plaintiff] is a member of a protected class, that [the Plaintiff’s] job performance was satisfactory, that [the Plaintiff] suffered a negative employment action, and that another individual who is not a member of the same protected class was treated favorably in the same situation as [the Plaintiff]. If the plaintiff can prove these four things, they would have established prima facie evidence of discrimination under the ADEA. If not, summary judgement [sic] for the defendant should be granted.

Mazzochi correctly argues that the Plaintiff does not meet the established criteria:

Firstly, [the Plaintiff] has not suffered a negative employment action. Use of the various retirement programs such as VRIP and ERP would be entirely voluntary, and would bestow a benefit (early retirement) on [the Plaintiff]. Failure to be rehired does not necessarily constitute a negative job action, as the plaintiff was at one time an employee and left voluntarily while obtaining a benefit. Since [the Plaintiffs] who accepted the retirement plans obtained a benefit, there is no disparate impact to the policies described. (Mazzocchi)

The crux of the business necessity defense is that the employees seeking rehire did not possess the skills necessary to make them valuable to AT&T.  They were not unfairly subjected to a test that precluded them from reemployment inexorably linked to their age, but rather to their lack of business skills.  Had the retirees possessed such skills [that is, prior to retirement], AT&T would have conceivably offered a counterincentive in order to effectively dissuading them from retiring.   The court believes that it is coincidental–but unrelated to being denied reemployment– that the retirees are of a protected class.

Judgment in favor of the Defendant.  Case dismissed.

Please send hate mail to: The Honorable Corey King

- – -

References

Bagley, C.E. & Savage, D.W. (2006). Managers and the legal environment: Strategies for the 21st century (5th ed.). Mason, OH: Southwestern-Cengage Learning

Dessler, G.  (2009). A Framework for Human Resource Management, 5th Edition.  Pearson Prentice Hall. Upper Saddle River, New Jersey.

Brown and Keeley. (2007). Asking the right questions: a guide to critical thinking. 8th Edition.  Pearson Prentice Hall. Upper Saddle River, New Jersey.

Cafferty, J. (2008, March 3). What does it mean if AT&T is having trouble finding skilled U.S. Workers? Cafferty File. Retrieved October 26, 2009, from http://caffertyfile.blogs.cnn.com/ 2008/03/27/what-does-it-mean-if-att-is-having-trouble-finding-skilled-us-workers/.

Disparate impact. (2009). Retrieved October 29, 2009, from http://law.jrank.org/pages/6188/Disparate-Impact.html

EEOC.  (July 2009). Understanding Waivers of Discrimination Claims in Employee Severance Agreements. U.S. Equal Employment Opportunity Commission. Retrieved October 28, 2009 from http://www.eeoc.gov/policy/docs/qanda

Karpinski, R. (January 2009). In tough economy, AT&T brings off-shore jobs back home. Retrieved Oct 31, 2009 from http://telephonyonline.com/residential_services/news/att-brings-jobs-back-0130/

L’Allier and Kolosh.  (June 2005).  Preparing for baby boomer retirement.  Retrieved Oct 31, 2009 from http://www.groco.com/readingroom/babyboomer_retirement.aspx

Salckman, D. (July 2008). AT&T seeks assistance from retirees during possible work stoppage. Retrieved Oct 31, 2009 from http://retireearly.ning.com/group/attemployeesformeremployees/forum/topics/830039:Topic:2861

Sauls, J.G. (April, 1995). Proving business necessity: the disparate impact challenge. Retrieved Oct 31, 2009 from http://findarticles.com/p/articles/mi_m2194/is_n4_v64/ai_16921449/

Smith, E., (2009). EEOC goes after AT&T on class action age discrimination case. Employee Rights Post. Retrieved October 31, 2009 from http://www.employeerightspost.com/tags/equal-employment-opportunity-c-1/

02
Nov
09

All Hallow’s Eve

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Transvestite Dorothy Zombie …. uggggghhhhh, bitches