Leadership

One of the most clarifying moments of 2019 was when I received criticism for leading the business with “family values.” The critic believed that running the business with a value of “family” weakened our position, and that caring for people first will eventually be our demise.

To this, they may be right. Most businesses eventually fail, and we are not exempt from that reality.

Core values have to do with how a company behaves, rather than what it does. Like the blood running through our veins, core values are the company’s DNA. While what we do matters immensely, I believe how we do things matters more. To that end, I am here to say that if Hoffer Plastics fails because of how we do things—treating each other as family members, treating suppliers and customers like we would treat extended family, and treating the environment and community we inhabit as best we can since we are stewards of it—I will rest well when it is all said and done.

If, on the other hand, business is all about gaining the next percentage of margin while disregarding human relationships and partnerships, telling half-truths to gain an upper hand, demeaning the competition and even rooting for their demise, blaming the “other” when things don’t go our way, or exhausting all natural and community resources while failing to ever give anything of value back in return, then I want no part of it.

Like any family, we are not perfect. Like any family, this is best seen internally inside our walls. We have our share of people problems because we are human beings after all. These conflicts can be frustrating, even infuriating at times, but we deal with them best we can by always giving the human being the benefit of the doubt. “Sorry” is a word that gets its fair use because we are family. And as a reminder to myself, saying “sorry” must first be modeled by me.

Of course, there is a downside to family. Consultants have told the Hoffer family that we have often allowed poor performers too much runway, that we have failed to confront those problems, and that we can be taken advantage of both internally and externally because of these values. While I think there is some truth to these warnings, I continue to believe for all the reasons listed above that “family” makes us who we are, and clinging to those values is worth the risk.

So yes, we run the business differently than others. If a prospective team member only wants to climb the next step on the ladder, and does not value those around them, we are not for them. If a prospective customer only wants the lowest price and does not value a long-term relationship built on mutual trust and shared growth, we probably are not a good fit. And of course, it is politically correct for everyone to say they prioritize these values, but we aim to be the kind of people that actually live it.

To be sure, this is not the only way to run a business, and to the critics’ point, it may not even be the best. I make no claims that it is.

I just claim that the family core value makes us who we are.

This is what makes us Hoffer Plastics.

Much has been written on meetings in the past several years. Are they good? Bad? Productive? Or just frustrating interruptions to the flow of the day?

My position is that meetings are becoming MORE essential than at any other time in corporate history. With digital technology at a premium, meetings serve to bring people together in the flesh, or at least in real time through the use of ZOOM, and other virtual meeting software. These are the places where leaders truly LEAD! It is the treasured battleground where your influence is put to the test. It is where direction is given, and the journey from moving here to there begins. It is where a team begins to “buy in” and starts to act.

But admittedly, meetings can also be the breeding grounds for waste: people’s time, their pay, and even their morale. Worse, people can leave a bad meeting feeling like they’re on the same page, but finding out later that they weren’t even in the same book!

Leaders, it is our job to improve this.

The number one thing a leader can do to improve meetings is demand that every current meeting’s length is cut in half. Every meeting. Increased time does not lead to increased efficiency. So, if we are not going to allow for “scrap” on the manufacturing floor, we shouldn’t be okay with it in our corporate meetings. Furthermore, decreasing the time in meetings creates a sense of urgency in the room. We don’t have fluff time to mess around, so when we are meeting, let’s get down to business. This can create urgency elsewhere as well.

To do this effectively, however, every meeting needs a leader. Ideally, this is THE leader, or a leader, in the organization. For the purposes of the meeting, they’re the boss. They’re the person that explains the issue, or issues at hand (never more than a few), and they keep the discussion tied to these issues alone. When people bring up problems outside these issues, they write them down so they can be addressed at a separate meeting. In other words, meetings cannot cook a “stew,” they should cook a single entree.

In addition to a meeting boss, a good scribe is also needed. While it is tempting to let the meeting boss to do this, they’re a bad choice because they need to be focused on the conversation going on, rather than writing it down. The boss should be asking clarifying questions, and paying attention to body-posture clues inside the room. The scribe, however, is free to keep their head down and type. Done well, they also can free some people from attending– those who really just need the information from the meeting. Like cutting the time of meetings in half, most meetings can also cut the amount of people attending in half. But this is only possible if a scribe is sharing in detail what happened at the meeting.

Finally, there needs to be clear action items from the meeting. Every organization does this. To make it effective, however, the meeting boss needs to go through each action item with the group to assess commitment level, understanding, and the plan going forward. If this does not happen prior to everyone leaving, the time spent was most likely a waste. As elementary at it sounds, there is power in a person saying, and owning, their action items. There is also value in finding out who is not committed, or said more politely, who would be more committed with one of the action items. Clarifying this here is vital, and keeps the organization moving forward.

Everything above could be done well and still no action be taken because individuals lose sight of the action needed to take. We all live with “information overload,” so unless we have a process for keeping up with our own action items, we are doomed from the start. As mentioned before, I use, and highly recommend, Michael Hyatt’s Fully Focused Planner. The act of physically writing down tasks, checking them off, and doing a weekly-review keeps me on track. Admittedly, Hyatt’s system isn’t the only one out there. But to me, it is the best. Whatever system you choose, find some way to keep your goals in mind, and keep your team accountable for the action items you agreed upon.

If successfully implemented, these ideas will save time, save resources, and enhance productivity. Meetings have gotten a bad rap, but done well, they are a leader’s best tool to create a motivated, productive organization. As Patrick Lencioni once said, “Meetings are where leaders lead!”

Lead well.

Emails were bouncing around despite it being a Friday night. One report, one response, the downward spiral had begun. Selfishly, I was both annoyed and angry. I was ready for the week to be over, and frankly speaking, I was ticked off that this couldn’t wait till Monday.

Instead of throwing gasoline on the fire, I decided to wait till Saturday morning to respond. So, the next morning I began crafting the ultimate email response as I sipped my morning coffee. At first the response was too stern, so I edited it until it sounded somewhat polite. I read it aloud. Would this be okay if everyone in the company saw it, I asked myself? I assured myself it would.

Then a quiet voice in my head reminded me that Abraham Lincoln often wrote letters that he never sent. I have even written about this practice before, but would I have the discipline to follow it?

Instead of sending the email, I sent it to myself and filed it away in a “do not send” outlook folder. If things were terrible Monday, I thought, I could send the email then. Or even better, I could call a face to face meeting.

The first primary benefactor of this decision was my family. Instead of being around a grumpy, stressed out husband/dad all weekend, Sarah and the kids got a better version of me. The process of writing down my thoughts and sending them to MYSELF (no one else has seen them still) had that strong of an impact on me. It was almost as if I had worked the stress out of my body.

Meanwhile, my teammates were oblivious to my frustration, and even my anger. They didn’t receive a weekend email, and were free to have a break, which allows them to refresh and be at their best for the work week.

By Monday, things had already calmed down. One of the sales people involved admitted that they had not only overreacted in the Friday email they sent, but they also now see the other individual’s point of view. By the middle of the day, it seemed like the “conflict” was over and done with. Everyone had moved on. Would that have been the case if I had thrown gasoline on the fire?

Several weeks later, no one is even talking about this situation anymore.

Do yourself a favor and create a “do not send” file today. As leaders, we are going to occasionally say or write the wrong things. This won’t resolve that. But it will be another safeguard against such occurrences.

We just have to form the discipline to use it.

When I was playing competitive golf in high school, my dad would advise that I needed to get off the practice tee and play. While “practicing” had its place, his view was that playing was what mattered most.

You can’t simulate real-life experience.

I have thought about that lesson a lot so far this year. In a business sense, there are ample opportunities to “practice:” Books, seminars, conferences, podcasts, classes, etc. While I participate in many of these, and while I would never steer someone away from such activities; the fact remains that leadership happens when you actually lead other people.

This means you stop reading the book, and start walking the floor.

This means you turn the podcast off, and call a team member to talk (remember when we talked?).

This means you stop writing the blog, and pay attention to the sales person that just walked into your office (hello, Tammy).

You can’t simulate real-life experience.

Lead now.

I have noticed an alarming trend in society, and even in our business, that can be summed up by what a recent retiree said to me in their exit interview: “It seems like a lot people are waiting for everyone else to do THEIR job.”

I can relate to this comment, and unfortunately at times in my life, I also have given into the temptation to voice all the problems I see in the world without putting in much effort into fixing them.

It is easier being the expert without absorbing the blows of leadership. For instance, it is easier pointing out all the things your favorite team’s general manager should be doing differently than actually being the one making the calls. Or, it is easier to point to all the things your local church should be doing differently, than serving and being part of that change.

And in the context of business, it is easier pointing out all the things the company should be doing differently rather than leading that change yourself.

Leaders always fix problems. They may get it wrong, they may screw things up even more, but they do SOMETHING.

Waiting on the world to change?

Change it then.

Otherwise, stop whining about it.

Earlier this year, I was afforded the opportunity to hear filmmaker Jon Erwin talk about storytelling. His discussion of a concept I had never heard of before, called “emotional jamming,” is what stood out the most. “Emotional jamming,” as Erwin defined it, is how a narrative creates disorientation between one’s heart and head. This disorientation opens up the possibility for one to change their mind about a particular topic.

Shawshank Redemption is arguably my favorite movie of all-time. It is filled with “emotional jamming,” as the audience is forced to reconsider their views on such topics as prison reform, the abuse of power, and even biracial friendship. For instance, whatever one’s prior views towards incarceration may be, the film’s story creates disorientation on this topic: Andy Dufresne may be at Shawshank unjustly, but what about the gang that tortures Andy at the beginning of the film? Or, what are we to make about Red’s (Morgan Freeman) admission to guilt, and eventual release from prison after serving 40 years of a life service? Not to mention his, or Brooks Hatlen’s, lonely and challenging life on the outside after being released, or Red’s commentary on “rehabilitation.”

The power of Shawshank Redemption, or any film, lies in its ability to change the way we feel. As Erwin reminded the audience in his talk, people tend to make decisions emotionally, and then back up those decisions rationally. Thus, the true power of story is in its ability to tug on our emotions, and open us up to change. Shawshank Redemption is memorable for its ability to do this. And if you have seen the film, I suspect you can remember certain emotions you had watching the film just by remembering some of the scenes in the paragraph above.

As you probably have guessed already, I believe story-telling to be an absolutely critical aspect of leadership. The temptation for the leader, especially in vision-casting, is to begin by sharing all the facts about why whatever needs to change needs to change. If people tend to make decisions emotionally, shouldn’t we lead rather with storytelling and let the facts follow after? Please hear me, this doesn’t mean that the facts do not matter. They always do! But the power of facts is limited until people’s emotions have allowed them to be considered.

The power of story is in its ability to create the disorientation between the head and heart that is necessary for change to occur.

Therefore, as leaders we would be wise to use its power!

Accountability is like getting a colonoscopy (so I am told!): Everybody knows it is best to have it done, yet no one wants it done to them.

As I have shared before, I went through a 360-degree review last fall. Those interviewed suggested that I hold other people more accountable. Since receiving my results right before Christmas, I have made a concerted effort to do so.

Here are some take-aways about holding other people accountable:

-I need accountability in all areas of my life, even in the area of holding other people accountable.

-Holding people accountable means first explaining what “success” looks like. Without crystal clear expectations, it is not only difficult to hold others accountable—it can be downright unfair.

–The tendency is for people to want someone ELSE to hold OTHER people accountable. Thus, starting to hold people accountable begins with earning their trust.

-I can give anyone a title, but leadership is earned. This makes all the difference in accountability, because management often only creates change through policies, corporate discipline, and the like. It is change by “force.” But a good leader can impact someone’s entire life through influence. This means everything in accountability. If someone is only listening because they have to, real change is limited, and short-term.

-Accountability NEVER discounts the value and dignity of the human-being. In fact, the most humbling lesson I have learned is that the opposite, not holding someone accountable, is unkind, and even unloving. It is akin to saying to yourself, “I value my own comfort over the other person’s improvement as a person.”

This is only a sampling of what I have been learning.

If you consider yourself a leader, start by asking someone to hold you accountable. Then, work to create the trusting relationships with your followers that ensure them that you have their best interests in mind.

Once this kind of relationship is established, dive in. It is never easy, but I can promise that it is worth the effort.

Leadership is about listening.

In the manufacturing context, this means that you should be approachable to anyone on the plant floor. You might not agree with the feedback, it might even irritate you, but you should listen to it.

Even if people feel the need to chew you out, let them.

Recently, I had this experience as people gave me feedback for the family’s decision to shutdown the facility for twenty-four hours on a Wednesday due to unprecedented cold temperatures (-30F). Some of our third shift team-members were upset because, in order to make up their two lost shifts, they worked Friday and Saturday nights. They could take those days as vacation, but that decision would inevitably be left to the discretion of their managers. The company needed enough team members present to run the facility to ensure that orders were completed and our customers experienced minimal effects from the shutdown.

Of course, our family considered the inconvenience of team members having to work both weekend days. We suspected that some may have pre-existing plans, or simply want the break that exists in the rhythm of a normal work week. But this wasn’t normal! In fact, this shutdown was only the second in our sixty-six-year history! The most important factor for the family was the well-being, and safety, of each team-member arriving at work around midnight, and departing the following morning a little after 8 a.m. According to the National Weather Service, these were the most dangerous times. Thus, we felt the safest decision was for our team-members to be home. Not only did this keep them out of the elements, but it also allowed them to be home with loved ones in case something went wrong in their home – bursting pipes being a fear realized by many

Chicagoans because of the unprecedented low temps.

Walking through the facility a few days later –on Saturday morning — I began receiving mixed feedback:

“My car would have started perfectly fine,” someone informed me. “You guys should have given us a vacation day, instead of making us work all weekend.” Another person simply said, “thank you.” Another said, “I don’t understand why we shut down. You should pay us extra for working all weekend, even if it just makes us whole for the week.” And another questioned, “Did you even consider people having to work all weekend?”

I listened.

I honestly felt bad. But, the job of the leader is to do what’s best for the collective whole, not the opinionated few.

And, as I mentioned above, people feeling the need to chew me out comes with the territory.

I take it as a sign that everyone feels like they can talk to the family.

I wouldn’t have it any other way!

Have you or your team ever misquoted a job? What do you? Do you refuse to own up to the contract? Do you run the job at a loss?

About three years ago, we took on some work from a customer whose molds were at a company in distress. Unfortunately, the pricing we offered wasn’t sustainable. So, in retrospect, we should have owned up to that, even passed on the whole project, instead of offering the aggressive pricing we did. The return has been negative for the last two plus years. As this example shows, we screwed up, and I allowed it!

But we have also lived up to our word.

Maybe we should draw the line in the sand? I know that’s what the business books I read would tell me to do. I don’t even want to think about the advice in negotiation books I have read.

But I don’t want us to be like that. Three years in to this project, we are now increasing the price slightly to get closer to break-even, and of course, the customer is upset. So am I. But our team has done everything it can to honor our agreement and serve this customer, even accepting a loss on our end. We are being transparent with our pricing because we want to prove honest and trustworthy.

And we appreciate beyond words when others are honest with us. In the midst of this experience, I had a sales call from someone that reads this blog. Without giving too much detail in order to preserve confidentiality, this person came to our team and let us in on details that he knew would change our decision to buy. He was willing to lose the sale for the sake of his reputation and long-term relationship with us. He wanted to be true to his word.

As leaders, our word is challenged every day. I challenge you to keep yours.

Even if you lose a sale.

Even if you run business at a negative margin, at least for the time being.

These financial costs are temporary. They are recoverable.

But once your trust is lost, it is gone forever.

Challenging truths for life and leadership

This week’s truth comes from Jocko Willink:

“Losing your temper is a sign of weakness.”

Leaders are self-controlled.

“Losing it” is always weakness.

I’ll own that I am occasionally weak. What about you?

Self-awareness demands an honest assessment. It is where improvement begins.

Honestly assess your demeanor this week.

Stay self-controlled in the heat of battle.

I highly recommend the two books Jocko has written with Leif Babin:

Extreme Ownership

The Dichotomy of Leadership