Young and Profiting with Hala Taha - Dave Ulrich: Culture and Leadership Principles for Young Entrepreneurs From the Father of Modern HR | E195
Episode Date: November 7, 2022The role of HR in an organization has been widely misunderstood by both employers and employees. While many people think that HR strictly enforces internal rules and has no impact on an organization�...�s bottom line, that couldn’t be further from the truth. HR exists to create value in the marketplace through your employees and your organization. Dave Ulrich came onto YAP to discuss the intricacies of HR and how business leaders can upgrade their HR practices, even if they don’t have a dedicated HR department. Dave is a Distinguished Fellow in the National Academy of Human Resources and the Co-Director of Michigan’s Human Resource Executive Program. He’s also the co-founder of the RBL Group, which develops custom leadership, HR, and organization solutions. In this episode, Dave and Hala dive into the purpose of HR and how strong HR practices increase profitability. Dave explains the value of psychological safety in the workplace and how it can prevent retention issues like quiet quitting. They also talk about why CEOs need to have a strong understanding of HR and how they can cultivate engagement from their employees who are working remotely. Topics Include: - Purpose of HR - How does HR impact the bottom line? - What does HR consist of? - Investing in an HR leader - Keeping your employees working hard - Combatting quiet quitting - Psychological safety in the workplace - Leadership as energy management - Giving feedback - Engagement in remote work - Optimizing organization - Understanding HR as a CEO - The Leadership Code - And other topics… Dave Ulrich is a professor at the school of business at the University of Michigan. He has performed workshops for over half of the Fortune 200 and has spoken to large audiences in 90 countries. Business Week named him the #1 Management Guru and Fast Company referred to him as one of the world’s top 10 creative people in business. He is currently on the Board of Directors for Herman Miller, is a Fellow in the National Academy of Human Resources, and is on the Board of Trustees of Southern Virginia University. He has published over 200 articles and book chapters and over 30 books. He has also co-directed research on over 40,000 respondents about the competencies required for successful HR professionals. Dave is fondly known as the “Father of Modern HR.” Resources Mentioned: YAP episode #186 with Fred Reichheld: https://podcasts.apple.com/us/podcast/young-and-profiting-with-hala-taha/id1368888880?i=1000578394312 Dave’s Books: https://www.amazon.com/Dave-Ulrich/e/B001K8TGCO%3Fref=dbs_a_mng_rwt_scns_share Dave’s Website: https://daveulrich.com/ Dave’s LinkedIn: https://www.linkedin.com/in/daveulrichpro/ Dave’s Twitter: https://twitter.com/dave_ulrich?lang=en Dave’s Facebook: https://www.facebook.com/jeppie.tettelaar Jay Galbraith’s Star Model: https://www.jaygalbraith.com/images/pdfs/StarModel.pdf LinkedIn Secrets Masterclass Join Hala's 2-day LinkedIn Secrets Masterclass and use code PROFITING at checkout to get 55% off! yapmedia.io/course Sponsored By JustWorks - Check out JustWorks' transparent pricing by visiting justworks.com/pricing Swag.com - Go to swag.com/yap and get 10% off your order Sabio - Visit sabio.la/YAP for a $1,000 scholarship towards the cost of their bootcamp at Sabio! Shopify - Sign up for a free trial at shopify.com/profiting More About Young and Profiting Download Transcripts - youngandprofiting.com Get Sponsorship Deals - youngandprofiting.com/sponsorships Leave a Review - ratethispodcast.com/yap Watch Videos - youtube.com/c/YoungandProfiting Follow Hala Taha LinkedIn - linkedin.com/in/htaha/ Instagram - instagram.com/yapwithhala/ TikTok - tiktok.com/@yapwithhala Twitter - twitter.com/yapwithhala Learn more about YAP Media Agency Services - yapmedia.io/ Join Hala's LinkedIn Masterclass - yapmedia.io/course Learn more about your ad choices. Visit megaphone.fm/adchoices
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There's a single factor that I can use to determine how good a leader you are.
How often does someone leave an interaction with you?
Feeling better or worse about themselves?
If you're a young entrepreneur, you meet with a lot of people.
Your employees, your customers, your investors, your suppliers.
How often do they leave your interaction?
Feeling better about themselves.
I think the young entrepreneurs are the heads of HR.
What you know and do as a young entrepreneur is manage people.
We often get in our mind some of the deal-bert cartoons or the office show on TV, HR the policy police. That's not it at all.
HR is there, not as a set of people, but as a set of ideas to help you as a young entrepreneur
create value in your marketplace through your people, through your organization, and through
your work as a leader.
What's up, gap fam? It's your host, Halitaha, and you're listening to YAP Young and Profiting Podcasts, the number one education podcast and business podcast across all apps,
where we interview the brightest minds in the world and unpack their wisdom into actionable advice
that you can use in your daily life.
Thanks for tuning in and get ready to listen,
learn and profit.
[♪ Music playing in background, music playing in background,
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So yeah, fam, I'm here with Dave Ulrich.
Dave is a university professor, best-selling author, a speaker, a management coach, and
consultant.
He's a professor of business at the University of Michigan, also the co-founder of the
RBL Group.
He's shaped the HR profession. He's known as the father of Michigan, also the co-founder of the RBL Group. He shaped the HR profession,
he's known as the father of modern HR. He's also been ranked as the number one management guru
by Business Week. He's been profiled by Fast Company as one of the world's top 10 creative
people in business, and he's also been recognized by thinkers 50 Hall of Fame as one of the world's
leading business thinkers amongst so many other accolades.
And so today's episode is going to focus on the importance of people within an organization and how to best lead our people.
And many of my young and profitors listening today are not in HR, but they are leaders within their own personal and professional lives and careers.
So I think a great way to start off this episode and the topic of people management and leadership would be to discuss the purpose of HR within an organization. So Dave, let's start
there. Can you tell us about the purpose of HR in your opinion? First of all, thank you again.
What a delight to imagine in my mind that I'm sitting need and need with any of your young entrepreneurs
and having a conversation with them. Here's the question I would start with. What does it take for your business to succeed? I'm an entrepreneur. I've got to create products
and services to customers' value. What do you have to do to make that happen?
And one of the things we've discovered is you've got to have money, you've got to have financial
resource, you've got to have a product, but behind all of that is the people and organization.
I would disagree a little bit.
I think the young entrepreneurs are the heads of HR.
What you know and do as a young entrepreneur
is manage people.
So HR is not about the HR systems.
We often get in our mind
some of the deal-burt cartoons or the office show on TV,
HR, the policy police.
That's not it at all.
HR is there, not as a set of people,
but as a set of ideas to help you as a young entrepreneur, create value in your marketplace
through your people, through your organization, and through your work as a leader.
And I'd love to understand how does HR actually impact the bottom line? A lot of people think
that it's just about internal and internal things, but it also impacts the bottom line and a lot of external factors.
So can you tell us about that? One of the things we've discovered, I think HR has been a legacy.
I mean, there's a legacy of HR. It was industrial relations, union relations, and then kind of the
policy, police kind of model of HR or policy people. Today, that's not where HR is. Here's the issue. What drives a bottom line,
your customer experience? Does your customer have a good experience with your company,
with your products and your services? Guess what? The biggest indicator of customer experience
is employee experience. Your customer experience, you got to have a good product, you got to have a good service, but once you've got that, do the employees who work for you create a great customer experience for
your people. HR is about people. People are inside the company and people are also customers.
And so the statistics show that employee experience is a lead indicator of customer experience. So one of the things HR does
is it gives your employees a great experience and that drives customer experience.
The statistics are amazing and nobody almost cares about that.
How to think of a company you enjoy going to, either a restaurant, a store,
an airline, name a company you enjoy going to.
an airline, name a company you enjoy what you're going to. Lululemon, it's a clothing store.
All right.
By the way, I have to confess, I have not shopped at Lululemon.
What's the, by the way, the clothing has to be good.
It has to be stylish.
It has to be fresh.
If you have bad clothing, nothing's going to overcome it.
Can you think of an employee who is really good at Lululemon who happens to give you
great service? He or she responds to your needs. They know your style. They know your fit. Can you think of an employee who is really good at Lululemon who happens to give you great
service?
He or she responds to your needs, they know your style, they know your fit, they know
what you can do to be more successful.
Can you think of one?
Yeah, the last lady who helped me when I went to the store.
That's the point.
A company succeeds when you got to have good fashion if Lululemon has raggedy clothes
or not going to get you back.
But a lot of companies have good clothing, they have good style, it's the relationship.
Nordstrom is a classic example.
Nordstrom is discovered that the correlation between employee attitude, how does the employee
feel about working at Nordstrom?
They have hundreds of stores and the customer attitude, he got them to buy more, is about
0.6 to 0.8. attitude, you get them to buy more is about point six to point eight. So if I'm a young entrepreneur,
am I bringing in people who have great attitudes because they're the ones that are going to drive
my customer attitude and that drives profit? Yeah, it's so interesting because nowadays anything
can be copied. So business models can be copied, you can google anything, it recreate it, and so
what's your differentiator?
It's your people, right?
It's the attitude they had towards the company, the attitude that they have towards customers.
That's what keeps customers coming back for more, and it's much cheaper to keep your
existing customers and always try to find new ones because you're giving them a bad experience.
By the way, I should quote you.
That's exactly what the research shows.
That if you treat your people well, however that gets you, that's exactly what the research shows that if you treat
your people well, however that gets defined, they will treat your customers well who are
also people and they will then lead to profitability.
And it's not easy to copy.
What's the name?
Lulu Lemon.
Lulu Lemon.
Cool store.
I wish we could get it.
And by the way, they're getting free advertising here.
I know they are.
But little lemon can go get great fashion.
They can find fashion design and they can do it.
But that woman who worked with you, who served you, by the way, we've also got bad experiences.
We probably shouldn't share those.
But so if I'm an entrepreneur, I've worked so hard to get money.
I built my business.
I built my products.
I tried to define my customers.
Now my people represent my company.
They are my company.
If the customers get a good experience with those people,
it'll drive our success.
Yeah, and that's why it's so important to learn about
everything we're gonna talk about today,
because it's essentially how we can increase productivity,
how we can increase employee engagement,
what type of leadership skills that we need
to be a good people manager.
So can't wait to get into the nuts and bolts of everything.
Let me capture that with a headline.
I gave a session a few months ago to a big company
it doesn't matter who to their top 100 people.
And I said, and this is the definition of where HR is.
And it's not legacy HR.
This is not the office, it's not HR is, and it's not legacy HR.
This is not the office.
It's not deal bird.
It's not some of those old stereotypes.
I said, what do these companies have in common to a group of a hundred senior leaders?
Digital equipment may not even know who they are.
Circuit City, Toys R.S., Eastman Kodak, G, they all went broke.
And I responded to them and I consulted for every one of them.
And by the way, that's not a great way to begin your introduction for a consultate.
I took them off from 100,000 employees right now.
And I said, let me tell you what we've learned in the last 10 years.
HR is not about HR.
HR is about helping your company succeed in the marketplace.
All of those companies, for example, Toys R Us, 300,000 employees had great internal HR practices, but they weren't understanding how those practices
affected customers. If you're going to succeed, HR is not about HR, it's about helping your
company succeed in the marketplace. Here's a quick example for an entrepreneur. You're growing your
company. You've got to hire someone. Very your company. You've got to hire someone.
Very simple thing.
You've got to hire people.
Will the people I hire create value for the customers?
In fact, if the customers had a voice
in who I hired, would they pick these people?
That's the criteria.
If I do training, if I do pay, will these HR practices
create value for my customers? When final, great example
is Southwest Airlines. We've all flown Southwest. They're a little different than the other
airlines. Why? Because the Southwest flight attendant doesn't get hired unless he or
she is interviewed by a panel of customers. Wow. Well, that's kind of cool. So am I the employer of choice? I've
employees my customers would choose. So as an entrepreneur, when you think about your
people, and it's more than people, we'll get to that. Am I getting the people who my
customers would be delighted to have on board? That criteria, HR is not about HR, it's about
success in the marketplace, becomes so critical for an entrepreneur.
What am I doing to manage my people, my organization, my leadership, so that our customers and
investors will have a better experience?
And I'd like to kind of just tap into what you just mentioned.
What is HR aside from just managing people?
Because it goes beyond just that.
It's so cool.
Legacy HR was about human capital, which is people.
Okay, I'm gonna do this.
I'm gonna make a fool of myself, and Hala,
I'm gonna encourage you to make a fool of yourself with me.
Okay.
This is the way I like to describe the HR,
and I can give a lot of examples.
My hand represents talent.
These are my fingers.
My fist represents the organization, the team or the culture.
HR's job is to have great people. It's also to have a great team. And the third dimension is leadership.
So when HR moves forward today, we call it human capability. Human is the talent. I'm an entrepreneur. Look at my people. Five people, 50 people,
500 people. Are they good? Look at my culture, my team, my workplace, and look at the leadership
I and the next generation leaders demonstrate. And my forearms represent the HR systems that
sustain it. So here's how I'm going to make make myself look stupid and you two. If you could hold up your fingers, that's talent, that's people. We have great
people. I've heard you say one of the greatest people you know is named Jason. He's phenomenal.
He makes things work well. He's great. Then you have a culture. Culture is the team.
Then you have leadership. That's what sign of respect in China. Then you have HR systems,
your forums, and then you do the HR dance.
By the way, you're better at the deaths than I am.
Now, I did that to make myself look stupid,
but if I'm listening to this,
think as an entrepreneur,
whatever it is, a fashion store,
and let's move beyond those,
it could be a restaurant,
it could be a lawn care service,
whatever it could be a technology company.
Do I have the right people
that my customers think are terrific? Do I have the right culture, the right organization? Do my
leaders, not only me, but those below me have the skills and then am I building my HR
services to sustain that over time? That's the issue that we see human capability, talent,
organization, leadership, and HR going forward.
Yeah, I love that. I think that was such a great example. It's a fun dance. And for those of you
listening in, you should check us out on YouTube if you want to watch me looking really silly.
So many of our YAHF listeners, as you know, they're entrepreneurs, they're small business owners,
they're side hustlers, they're managing remote teams, and a lot of them can't afford a proper HR department.
They can't afford C-suite executives
that need over six figures a year.
And so I run a company that makes millions of dollars a year.
I still don't even have a CHRO, probably next year I'll need one.
And so I wanna understand what is the bare minimum things
that you need as a small business in terms of HR, and what's the right time to actually invest in an HR leader?
Great question, and I'm not here to advocate to build a big HR function. That would be silly. That would be the old HR
That's the policy police who build complicated processes. If I were interviewing you or sitting with one of
I'm gonna say for the next few minutes are listeners because I feel like I'm connected with you. Of course. If I'm sending need and a with a listener, I'm going to say,
here's the three things. You as CHRO, young entrepreneur, side hustler going, have to manage.
Do I have the right people? Are they competent? Are they committed? Are they engaged? Am I
getting the people with the skills and the dedication to meet my customer needs quickly?
Second, have I got the right team, the culture, the systems, are my people working,
and we know what culture is. We'll dive into that. I know in a minute.
And third, what do I do or what do you do if I'm coaching you?
Is a leader that makes sure that your people and organization come together
to help your customers get value. That's it.
And you say, well, what does that mean?
It means you hire people, you train people, you pay people.
You know what?
There's a lot of HR online services.
And until you're a company of a couple of hundred people, by the way, people are going
to get really mad at me.
Just go use those services.
But the question you should be asking is, does my talent do my people, does my culture,
my organization, and do the other leaders, including me, have the commitment to help customers
have a better experience with my product?
That's it.
Yeah, I love that.
And whatever sponsors just works is a great solution for everyone.
Absolutely.
Again, I don't know which one that is.
There's a lot of HR services and I know they're
your sponsors and so the more you say that, the happier they are. They're not going to get as much
press as Lulele Lemon. But by the way, if I'm a young entrepreneur, I don't want to spend a ton of
my time on the HR systems, but I do want to spend my time on people, organization, and leadership.
And in fact, what we found, again, we do research on large companies often we did studies of top companies for leadership the companies that really had effectiveness
The seniors the senior leaders of these companies spend about 20% of their time on what we're now calling human capability
Talent organization leadership. So in the back of your mind
Simply be asking yourself the question. Am I spending about a day a week? And I know
it's not a 40 hour week, no entrepreneurs are doing that. But am I spending about 20% of
my time thinking about who are the people I have in place? How am I getting them? How am
I making sure they're having a great experience? So that customers have a great experience.
Am I building a team? Am I building the culture? Am I demonstrating as a leader what I promised my customers?
We believe that takes about 20% of your time as an entrepreneur.
We'll be right back after a quick break from our sponsors.
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This is such a perfect segue.
I literally organized my whole interview,
talent, organization, and leadership.
That's how I organized it.
So just so funny.
But we thank you.
What you've just done is you've just validated our research.
We go collect tons of data.
And what we find is thoughtful people, all we do in our research is put words
behind what thoughtful people do.
And you're obviously successful and thoughtful.
Thank you.
That confirms the research we've done.
Yeah.
Okay.
So let's move on to talent.
So there's these big trends going on, the great resignation,
which I think everyone has heard about by now, people leaving their jobs,
trying to find more purpose, becoming entrepreneurs.
Then we have quiet quitting, which is basically people deciding to do the bare minimum at work.
They believe that they shouldn't go above and beyond because they think that they don't
get any rewards for doing so.
So obviously, there's a huge problem with productivity in the workplace right now.
People don't want to work.
And people want to work less at work
because they feel like they don't get rewards for it.
It's this quiet quitting trend.
So I'd love to understand how we as leaders
can keep our employees working hard
and going above and beyond.
Well, first of all, if your employees are leaning
if you have quiet quitting,
by the way, those aren't new topics.
One of the things I love to do
because of my history and ages
is show how ideas build on each other.
We've talked about employee satisfaction,
employee commitment, employee contribution
for a long time.
Employee experience is the underlying theory.
Part of your job as a leader,
if I'm coaching you, sitting neat and neat with you
is to say, how do I help my employees
have a better experience at work?
We've all been in jobs where we had a great experience
and we've almost all been in jobs where we didn't.
What's the difference?
You've had Daniel Pinkheim.
By the way, let me just do a shout out.
What a brilliant thinker around autonomy
in some of the principles.
We have a framework that's really, I love simplicity.
We've said as a leader, there's four things that your employees want,
so they'll have a better experience. And remember, their experience will be a lead of customer
experience. Number one, be safe. In the world we live in today, physical safety, making sure that
the employee feels like, I'm not putting you at risk. I'm not, I'm saying if you're sick, stay
home appropriately wear masks, psychological safety, we care about
you psychologically and emotionally.
So that's one.
Be safe.
Second, believe, do your personal values reflect the values of the company?
Our company has a set of values.
This is what we believe in.
We believe in, I'll just pick three random learn, listen and profit.
I just pick three random values. By the, and profit. I've just picked three random values.
By the way, they're on the board behind you.
If you don't believe in listening and learning
and profiting, don't come to work at our company.
It's not gonna work for you.
But if you do, your beliefs will match our company beliefs.
So talk to your employees about the value of values for them.
Why do I do the job I do?
Because it gives me a sense of meaning, a sense of purpose.
Be safe, believe, become.
I go to the employee and say,
you're Gen X, you're Gen Z, whatever Gen,
even old generation like me, you wanna learn,
you wanna grow.
We will create a company where you can learn and grow.
You'll develop skills and opportunities you wouldn't have had elsewhere.
Be safe, believe it, and I think finally the fourth and perhaps most critical belong.
We're going to be a place where you were a community.
We're going to listen to each other.
We're going to show respect.
We're going to be inclusive.
Whatever that word term means to you.
So if I'm a young entrepreneur and I say, what is it I want to promise my employees that
we'll give them a better experience?
Be safe.
I almost think that's foundational.
If you're not safe physically and psychologically, you're not going to say, believe, will our
values as a company reflect your beliefs and values as a person?
Become, are you going to be able to learn and to grow and to develop new skills?
Have a growth mindset, aword and belong are we going to be a place that we care about you we show empathy we show emotion.
In general, employees who get those four things be safely becoming belong will have a higher employee experience and that's what I hope I can provide my people.
That's what I hope I can provide my people. I love that.
And I'd love to dig deeper on this concept of psychological safety because I think mental
wellness is such a huge thing right now at the workplace.
And I think a lot of people are spending time on that and investing in that.
And it used to not be a thing at all.
So how can we improve psychological safety within the workplace?
Great comment.
By the way, I encourage those really interested to read work by Amy Edminson.
I'm not going to claim work.
I've already given Dan Pinkish out out.
Amy is really the, I've heard that there's a podcast, Princess, who's the my throw of
podcast.
Amy Edminson is the psychological safety princess.
And I encourage people to look, but here's the logic.
Psychological safety means I feel like my
needs are being cared for. Somebody cares about me. If I were coaching again a leader, there's
four ease I'd say you've got to pay attention to. One is emotion. Don't be afraid as a leader to
let the emotion come through. Feel, care, to his empathy. Let the compassion come through.
2. Is empathy. Let the compassion come through. I care about you. In a real way, my emotion, my feelings are not hidden. I think some of the old models of leadership hide those emotions.
Don't let anybody see that you're vulnerable, that you feel. Of course I feel. And I have
empathy, compassion, third, energy. People draw on leaders' energy. They do what their
leader does. And so as a leader, are you demonstrating energy? I ran a mission for three years for a church, a number of
years ago, and one month I decided that I would where I would button my coat every day.
At the end of the month, all 200 people who reported to me button their coat every day.
I didn't say a word. They copied me. They looked at me.
They copied me.
The next month I unbutt my coat every day.
And at the end of the month, they unbutt their coat every day.
By the way, the third month I did a day on and a day off, just to confuse people.
By the way, I was trying to teach another lesson.
But the model is, are people feeling my energy as a leader?
Do they feel it?
And then the fourth is is make sure that my people
have that good experience, the belief becoming belong.
So my job as a leader is to try to provide
that mental well-being, empathy, emotion,
that's caring and compassion.
I'm gonna give one example,
because it, this sounds like it's all flowers
and roses and happiness.
There are times when you as a young leader or old leader have to make tough decisions.
People make mistakes.
Don't run away from it.
Let me give an example.
I was coaching a leader.
It wasn't a small company.
It was a big company, a senior leader.
One of his employees made an egregious mistake.
I said to him as a leader, before you contact that employee, talk to me. I'm your coach.
And he said, well, I'm ready to send an email. By the way, that's also a problem, but they were
global. And so he contacted my email and he said, this is the email I drafted. You made a huge mistake.
It costs us millions of dollars. If you don't fix it, you're fired. And I said, stop.
Don't send that email. And he said, what what should I do?
Again, I love, I love holla simplicity.
Three things.
Start.
I care about you.
Really simple.
Number two, you have great potential at this company.
Then you made a big mistake.
It cost us millions of dollars.
Do not hide from that.
And then number three,
what do we learn from the mistake so that you
can get better? By the way, notice, that's part of that caring for the mental health.
I love that idea, not only at work, but at home. I care about you. I think you have great
potential. And then if there's some material, you got to share, share it. You did make a mistake.
Don't don't get all judgmental. You made a know it I know it what are you gonna learn by the way it
was so cool with this experience the leader I worked with sent that note out
call back 24 48 hours later he said wow I had a conversation with that
employee I've never had before because the employee said you've never told me
you care and then I have potential. I really want to work with
you. So even in tough times, we have to make a work. And I'm going to do a final addendum.
By the way, you made a mistake. You opened me up and I'm talking. I've done a ton of research
on leadership. I have concluded there's a single factor that I can use to determine how good a leader
you are. And it's going to be so easy. How often does someone leave an interaction with you?
Feeling better or worse about themselves?
Stop and think about that.
How the, we've not interacted much.
I can already feel your energy
by the picture and your energy and your vitality.
I'm feeling better about myself.
If you're a young entrepreneur, you meet with a lot of people.
Your employees, your employees, your customers,
your investors, your suppliers. How often do they leave your interaction, feeling better about
themselves? That's the criterion, a criterion of leadership. I completely agree. When I think of
leadership, I think of energy management. I'm the CEO of 50, 60 people right now. And my job,
I feel like my main job, aside from being innovative and coming up with strategy, is to be the
energy of my company and make, because I know, however I feel, is how they're going to reflect
that back out me. So if I'm worried, they're going to be worried. If I'm productive, they're going
to be productive. If I'm in a bad mood, everyone's in a bad mood, right? And so you have to be careful.
And I love the advice that you gave about feedback.
It reminds me of the sandwich technique that Heather Monahan talked to us about.
And so I love that.
It's like give a compliment up front, give the criticism, talk about how you can learn
about it afterwards so that people actually improve.
I think there's always two types of leaders.
I think I'm in the first category.
The first type of leaders, they just like tell it how it is.
I think my worst quality as a leader is sometimes,
I'm very busy.
I'm running basically four different companies
at the same time.
And it's a lot.
And so sometimes I can be a little rushed in my feedback
and forget to sandwich technique.
And it's I always regret it every time.
And so it's so important to take the time to give quality feedback and not just spurred
out what's wrong all the time.
If I could implant one little thing, not in your brain, but in the brain of those
listening, you do this instinctively.
How do I help this person who I'm interacting with feel better about themselves?
By the way, that leads to the sand which it leads to a whole lot of things carrying empathy
emotion. You know what? And it could be very short. I post on LinkedIn quite a bit.
Once in a while, I lose it and I get snarky because somebody made a comment I didn't agree with.
I've almost always got to tell myself, time out, even in those short bursts. Thank you. Express gratitude.
I don't agree with you, and that's okay. But thank you for giving me another
point of view that I'll think about. By the way, if I can get that little,
you know, it call it whatever you want, sandwich, gratitude, positive
psychology, I want people to leave an interaction with me. It's a leader
feeling better. I hope I make you feel better from this thing so that I listen, learn and profit in an appropriate way.
Yeah, and I have to say that one of the tricks that I use to make sure that I'm maintaining
good energy within the organization is that I really try not to give feedback like on text or
email. I try to take a loom video. So it's like a little app. It's for free. And I'll
take video feedback. If I realize that I'm being mean in the feedback, I'll start it over
and be nicer and then send it because I know that it's, it's like people will remember,
like especially when you're the leader, they're going to remember every word that you said.
And if you made them feel bad, it could take weeks before they feel motivated again. And so it's very important to maintain that energy.
And can I add an addendum? I'm sure it may have happened to you. It's happened to me.
We make a mistake. Even with good intent, we try. We make a mistake. Don't run away from it.
Run into it. Make it a good apology. The repair becomes part of a relationship. Relationships
are not always cheery. I made a mistake yesterday, by the way, in our company with one of our employees.
I goofed. By the way, if you're intentionally hurting people, get out of the company.
I mean, that's another issue. But we still make mistakes, even with good intentions. So,
I'm sorry. I made a mistake. Here's what I did wrong. Here's what I've learned. Here's what
I'm going to do differently. I think when. Here's what I'm gonna do differently.
I think when we run into the mistakes and make a repair,
a mistake is a fail, Carol Dweck,
the princess is the word, pot of cast princess.
She's the princess of growth mindset.
Failure is an opportunity to learn.
And when we do as leaders make mistakes,
and by the way, if you haven't made a mistake
as a leader, you're in trouble because you're not taking a risk.
Of course we make mistakes, right into it.
I'm really sorry.
Here's what I did.
Here's what I feel.
Here's how I feel about you.
Here's what I've learned.
And then the repair enables growth.
So I just want to throw that in there.
This is not about not making mistakes.
That's okay.
But let's learn from them.
Yeah, totally. Everybody makes mistakes. And if you own up, you actually see more human, they'll probably connect with you more.
And it's a bonding experience at the end of the day if everybody ends it happily. So I think that's a great point.
So this energy thing is really important. And a lot of us after COVID are now either partially
or all the way working remote.
My company has always been remote
and I think that it's causing a real problem
in terms of engagement.
So I'd love to hear your thoughts in two cents
on is remote work good or bad for engagement
and what can we do to improve it?
There's a long answer and a short answer.
The long answer is we don't know yet.
How's that for being an academic?
We just don't know the long-term consequences.
Short-term.
Remote's not new.
You say you've been remote for years.
I've worked remotely for years.
By the way, welcome to my office.
I live in the United States in Utah.
I'm a professor at Michigan.
In fact, in our, we happen to celebrate Christmas in our newsletter, the address I give is to A, because I'm always sitting on
an airplane in seat two A. In fact, I mark just to give you a sense. You gotta have a
sense of humor. I sometimes mark on the window a little note that I sat in that seat.
My wife was traveling with me. She said, what are you doing? I said, I'm marking my turf.
She said, there's five dots. And I said, I've been in this seat five times. Remote work's not new. It's not new. You've been remote.
I've been remote. Everybody gets excited about where you work and how you work. Are you
working at home at Starbucks in the office in a car on the beach? Are you doing it face-to-face
or digital? I believe those are the wrong questions. If I'm an entrepreneur, I don't care as much
about where my people work or how they work.
Here's what I care deeply about.
What work are you doing?
And why is that work creating value for a customer?
Let me say that again.
If you're working in Starbucks,
but you came up with an idea that's going to change
our company's ability to work with customers better,
I don't care if it was at Starbucks or Lulu's fashion
or Lulu's lemon.
What I, or on C2A, what I care about is,
what are you working on and why will it deliver value?
And so when we focus engagement,
not on location or place,
but on what we do and the value it creates for our customer,
that's that outside-in customer logic,
I think we're going to have engaged employees. Our employees are not usually dedicated to the office,
who I'm going to leave because my office chairs too small. No, I'm going to leave because I'm
not doing work that I see the value of. So that's, I would shift the focus from where and how,
to why and what. Now, what does that mean? when we come together? Let's not do work together. I could have done it home. I mean, that's almost obvious. Don't come to the office and do emails
It doesn't well by the way with neck generation you're not doing emails anyway
You're doing you're doing Instagrams. You're doing Twitter is you're doing
Other systems, but when we're together let's be together and make sure that we build the community the belonging believe me come along
Okay, I think engagement belong. Okay. I
Think engagement is very possible. I'll ask a question. This is kind of dangerous. You and Jason is on your team if I remember right?
Is that right?
Yep, he's my producer. Yeah
How often have you and he been in the same room?
Like maybe ten times
But we're best friends. You know what I mean? That's the point.
By the way, here's my test.
Again, if I'm, I love these simple tests
that somebody lead feeling better.
Here's my test.
Are we building a connection?
Energy is your word experience.
Maybe mine same thing.
If Jay, by the way, I'm gonna get emotional here
and I'm not afraid of that.
Cause this has happened with people,
I have an assistant for 34 years.
We've been in the same city two years.
But if my assistant called and said, Dave, I'm really struggling today.
I need some help.
I would stop and I would help her.
If Jason said, Hala, I'm really having some struggles right now, whatever they are.
Obviously, Jason's not.
But if you were, how quickly would you respond?
Right.
I would drop everything.
By the way, you have created an emotional bond that is not tied to boundary.
The boundary of a company is not the space.
It's the emotional connection.
By the way, as a leader, again, think of your employees.
If an employee called another employee or company and said, I'm really struggling right
now, I need help
Would my company employees be willing to put aside what they need to put aside and respond with their
psychologist call this by the way. There's all kinds of research on this stuff a bid
We do that with I don't know if you have children. We do that with our children our daughter called last night in another city
Mom, I'm really hurting right now
Wendy and I had to go to an engagement.
When he said she looked at me and said, call the people we're going to be engaged with, we're
going to be late. And she's then spent 15 minutes talking to our daughter. Now my wife, who's
back here as a great psychologist, this is not about me, it's not about you, it's about an
entrepreneur. Am I building a set of people who have a culture of taking care of each other
even at a distance? I hope we've got that. That's the litmus test.
And I think what you're really trying to say is that don't be afraid of bringing love into work.
That's right. I tell my executives I love them all the time. I don't know if it's appropriate or not,
but it's the truth. It's like I care for them as people and I truly love them as my best friends. We spend so much of our lives at work. The people that we work with should
be our friends and we should actually love them.
You know, we should test that with Jason. You should call him at 2 a.m. this morning.
Say, or send him a note, Jason, I'm struggling. I need help right now and see what Jason.
By the way, there's always scary to make fun of the technology person behind the screen
is producing.
I think we all get it. We want to build relationships. Relationships are not By the way, there's always scary to make fun of the technology person behind the screen is producing.
I think we all get it.
We want to build relationships.
Relationships are not just temporal.
There is a time when you do need to come together.
When you and Jason are together, it's not just, let's get together.
What's the task?
You get together.
Jason, how are you?
How's the family?
How's your personal life?
How are things going that you're willing and vice versa? But I think those relationships can be built across boundaries as well.
100% and in business, things are always ups and up and down. And it's so much better when you have
a team that just stays strong, no matter if it's up or if it's down and I think it's really important.
Well, that's the piece and I'm going to transition you a little bit. Remember, I had my stupid dance
if you're not watching. Yes, it's time to talk about organization.
That's it.
You got organization, then you got team.
We've done research, and again, I love to base ideas on pretty solid research.
We have tons of data over decades.
What matters more to a company's success?
So I'm an entrepreneur.
What matters more?
Is it my people or my organization?
Is it my fingers or my fist if you're listening?
The answer, four to one organization.
You can have good people, but if they don't work well
together as a team, the customer doesn't get value.
One piece of data that I think people can relate to,
and it sports, and I apologize for sports,
but this applies, I'll do two examples, sports and movies.
Michael Jordan, self-defined,
probably best basketball player in history,
the all of, no, Michael Jordan.
He won the scoring title nine times,
leading score in the league, best person, fingers.
Three times, he did not win the championship.
So nine titles, three, no championship.
He scored 36 points a game.
Six times, he won the championship. And he scored 36 points a game. Six times he won the championship. And
he scored 29 points a game. Take a step back from that very simple case. Michael Jordan,
the best player, leading scores, nine times. Until his personal scoring dropped 20% 36 to
29, they didn't win. When he made other people better, the team was more important than
the individual.
By the way, the same is true in movies. How often is the leading actor or actress in the movie
that wins movie of the year? And it's 20%. Let me say that again, the leading actor,
actresses in the movie, the wins movie, the year 20%. How often is the director in the movie of the
year, 80%. That's why, again, for those listening,
I have my fingers, that's the hand, I have my fist. Leadership is the combination. That leadership
piece brings together people. So it's not just a great actor or actress. It's the ensemble. It's the
team that makes us successful. Yeah. So I'm going to say quote directly from you individuals can be champions
But it's the organization that wins champion chips. That's a great quote. Where did you come up with that?
It's the Irish Dave. So let's talk about how we can optimize our
Organization so you've got this concept. I heard you talking about called morphology. Can you tell us about that?
You're right and you're gonna love me because I'm not going to talk about it.
Most people define organization as structure.
And if I say to people, drawing organization chart, they draw the little hierarchy.
It's a Christmas tree.
Here's the boss.
Here's who reports to her.
Here's who reports to them.
That's more apology, that shape.
And here's the takeaway.
Organization is not structure.
It's not more followed.
It's not shape.
Organization is your culture or your
capability. Now, if I'm a young entrepreneur, that's kind of okay, that's a nice theory. I don't
want to go back and go to school and learn a theory. Here's the application. A culture is what we're
known for by the customers who use our services. Let me say that again. A culture or an identity is not our internal values. It's what the customer
sees as our brand and our identity. A very simple example, Disney. Big company, it's not a young
company. Some of you hope you can grow it to be as big as Disney someday. You may not. But
what makes Disney so good? They've got a brand. We have grand, our son finished his PhD.
Mike, when you want for a gift? He had four children
at the time. I want to go to Disney. So we say, Mike, we'll go to Disney. He says, great, we're going
to go to Disney for a few days. His sister says, I want to go to Disney. His sister says, I want to
go to Disney. Suddenly, 15 of us show up at Disney, 16 of us actually. Why? Because Disney has an
incredible alert. It's got an incredible brand.
You're going to have the happiest time on earth. It's a great experience. And by the way,
I was so distraught because the idea of dad, let's go to Disney to celebrate my degree.
And family is a nice way to say, dad, would you pay? And three nights or four nights at Disney,
anyway, it's expensive. I was grouchy.
I was grumpy because it's expensive.
We have eight grandkids, some endipers.
We're walking around.
We walked into a room and out walked at Disney Princess.
And she reached her arms out and my granddaughters turned
or our granddaughters turned around.
Grandpa, grandpa, she's real.
Aw.
And she's so beautiful. Grandpa, we's real. Aw. And she's so beautiful.
Grandpa, we love you.
Aw.
By the way, everybody goes, oh, that's sweet.
No, that's not sweet at all.
Because the next year we had to go to Disney again,
and again, and so last year at Christmas,
there were now 18 of us went to Disney and spent three days.
Look at what Disney has done.
They've got great talent.
They hire that princess who is so beautiful and spent three days. Look at what Disney has done. They've got great talent. They hire that princess who is so beautiful
and looks so good.
They hire Disney characters who carry themselves well,
but they've got a culture.
They've got an identity.
We're gonna make this a happy place for you.
And Disney charges a lot and they are successful.
So that's abstract.
I'm an entrepreneur.
Here's my question.
What do I want my company to be known for
by my best customers in the future?
At your company and you have a lot of companies,
what do I, Hala, CEO, the founder of these companies
want my company to be known for by my customers
so that they'll keep coming back like Disney?
What is it I want people when
they see me? What do I want? Innovation thought that we're the most innovative.
By the way, that's if that's your brand in the marketplace, use that as a criteria to
hire people. I want to hire innovative people. I don't want to hire people that aren't
innovative. I want that to be my culture. I want to pay people for that. I want to train people. I want to encourage that.
And now, and then by the way, I come back to you as a leader.
What are you doing to model innovation and imagination?
Because when you identify that outside identity or brand and you bring it inside with talent
leadership and organization through your HR systems, hiring, training, pain,
those again are just the routines.
When you do that, you have created a culture
that creates value for your customer.
Yeah, and I'd love for you to kind of go deeper
on this concept of identity.
Maybe give us some examples of some big companies
and what they're, it's very simple
and I feel like people need to understand it.
It is such a simple idea.
I was going to ask you for name a company.
Well, let me ask you, name a company you admire, just a company or two you admire.
Amazon.
Amazon is terrific.
By the way, Amazon, I don't know if you're like us.
Amazon, UPS has already, a, a, a, a, a, a, tracks in the road because they're here so often.
One on a reason, yeah. What does Amazon want to be known for?
Putting a smile on people's faces, right?
They put a smile on face. Why?
What is it that causes, by the way, I'm Hala, I could get,
I could go to a lot of websites and order products today.
Amazon used to be the only e-commerce business.
Now there's a lot of sites.
What is it Amazon does that puts a smile on your face?
It's fast. That's it. It's fast. It's reliable. It's efficient. It's low price. By the way, if it's high-tracks, you're not going to play. But it's efficient. It's predictable. By the way,
if that's the Amazon desired identity that causes me, hollow, or me, Dave, and I love Amazon,
because you can buy products sitting in C2A on an airplane.
You can buy products anywhere.
What do I need to build into my organization?
By the way, this is really counterintuitive.
I want the customer to see me as reliable, fast, efficient, and low price.
Do I want an organization that's loose or tight?
Very organized. Very organized.
Very organized, very tight, very disciplined.
Why?
Because that's what's going to cause the customer to come back.
By the way, people sometimes get mad at Amazon.
They have a tough culture.
They're pretty strict.
They're pretty tight.
Why?
Because the customers are buying the product.
And that's why Amazon needs that.
You talk about your vision is imagination, innovation, creativity, whatever I word you
want to use.
There's about reliability, predictability, price.
You're going to have a very different way of managing.
Amazon is stripped.
By the way, if you're abusive of people, there's no excuse.
Let's just be clear.
If Amazon ever abuses people, they have 14 leadership principles.
The 15th is we will treat our people with respect.
You know, if you're an abuser at Amazon, you're gone.
So that's not an issue, but we are going to be stricter.
Because there's a customer out there somewhere today, there's a million of them.
We're going to say, I need to go buy this toy for my child or I need to buy this shirt
or this outfit.
I'm going to go on Amazon because they're easy, they're reliable, they're cheap,
Bing. And that's what Amazon builds. So when they hire their new employees, I'll finish off with
Amazon. I had a friend at college student, he got hired in the warehouse and they're pretty tough,
you'd work pretty hard, or truck drivers, you work hard. His first day was all about customers.
Who are the customers of Amazon? Who are they? What do they want?
Why are they buying from us? And he said, he got a hold on. He said, it was really weird day.
The first day I didn't even do anything. I didn't package anything. I didn't do anything.
All I tried to learn about was customer because that's what Amazon is trying to create.
A customer service that puts a smile on your face. Let's hold that thought and take a quick break with our sponsors.
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So I think this is a really great idea. It's like think about the identity
that you want externally for your company
and let that be the guiding force for everything
for who you hire, for your values,
for the type of environment that you have.
It's just a very simple way to look at things.
So I love this.
And you gotta be thoughtful
because what you think your identity should be,
shouldn't be someone else.
Let me give your own, our entrepreneurs for the next few minutes, a test.
Let's say you have a team.
How many direct reports do you have, Hollow, who will report to you?
You may not be structured that way, but probably like 12 people.
Super, you got 12 people.
I did this at Domino, so imagine how I was doing it with you.
I did this a number of years.
They had 14 people.
Here's the exercise.
I gave
each of them three three by five cards. What are the top three things we want to be known
for by our key customers in the future? So you've got 12 people. Everybody writes down
three answers. You've got 36 cards. Dominoes had 14. They have 42 cards. Sort those into
common piles. Dominoes, we want to be known and they're different
from you obviously for quality, for good people, for good service. Super. By the way, find
out of your 36 cards. So imagine again, 12 people, don't you share yours first. That would
be terrible because then they'll all repeat it. That's not good. But what are the things
you want to, we should be known for by our customers.
You got 36 cards.
Let's say the first pile had 10,
the next had eight, and the next had six.
That's 14, that's 24 out of 36.
Those are the three biggest piles.
You have a 67% shared mindset.
Notice where I got the 67%.
You had 36 cards, 10 said the same thing,
then eight, then six, that's 24 out of 36.
And by the way, it's not 67, it's 60 to 70%.
It's not that precise.
By the way, I'd say to you, that's not good enough.
You need that answer to be 80%.
You need to have a unity among your direct reports
of what it is you want to be known for.
We did that at Domino's quality service value. Then we put that in customer terms. What do we at Domino's
want to be known for? What's quality mean to the customer? Hot fresh tasty pizza. What
does service mean delivered on time? What does people mean by friendly people who drive
safe? So suddenly we've got this identity, quality.
By the way, the abstract words don't mean very much. Quality, service, people,
and don't have a hot, fresh, tasty pizza delivered on time by friendly people. Then we screwed up.
We didn't go to the customer. Now, you probably don't need a lot of Domino's pizza.
I've eaten Domino's in my life. Somebody sitting there at night saying, it's Friday night, am I going to order dominoes,
pizza hut, little scissors?
Is it the quality, the service, or the people?
No, it's price.
It's price and value.
When you begin to ask that question, again,
I'll with my 36 items, my unity, go to your customers.
What is it that causes you to pick us?
And the dominoes, by the way, I'm now making
another confession. I confess a lot that I goof. We didn't take quality service and people
to the customers to find out what they valued, which was price and value for money.
That's so obvious. But that's what it is we want to do to create that identity in the marketplace.
Yeah. And if anybody is really interested in customer surveys, we actually interviewed the guy who
invented NPS, Fred Reicheld on the show.
So you guys can check out that episode.
So why don't we talk about leadership?
Because we have about 10, 15 minutes left and I really want to make sure we talk about leadership.
I heard you on an interview and you were talking
about how now a lot of HR leaders are better fit to be a CEO of a company than marketing
and other like business development leaders and things like that, which is totally counterintuitive
because it used to be that HR was sort of like this outsider at the table. So I'd love to hear like why the qualities of HR
are important to have a CEO.
You know, one of the things that I hope I keep coming back to
is we have pretty good data.
This was with Cornfairy, Ellie Fisher, great, great data.
Here's what they did.
They have profiles and everybody has seen a leadership profile.
You do it 360, you set goals, you engage people, you get things done, you build teams.
We did a profile of CEOs based on corn fairy data.
I give them all the credit in the world.
These are CEOs.
Then we took that profile from a very big data set of corn fairy, CHROs, CFOs, chief financial
officers, chief marketing officers, chief marketing officers, and chief IT.
And we took their profile.
And we saw which profile was the closest to the profile of the CEO.
By the way, we also said we want to take the top 20% of performers in each of those four
categories, HR Finance IT.
So the top 20% of HR, CHROs, had the profile closest to the CEO. By the way, that shocked me.
I would have thought it's marketing or finance. And then we have to sit back and say, I love
data that tells a story. What's the story? You started with it brilliantly. You said, why are we
worried about, I'm going to call it human capability, not just people, but organization leadership.
Why do we worry about human capability
because it's a differentiator?
Our competitors can copy our financial system.
They can copy our products and services.
They can even copy our technology.
It's tough to copy our human capability,
talent organization and leadership.
By the way, that's the data.
You can't run away from data.
Our explanation is CHROs who know the business.
If you don't know the business, you're not going to be a CEO obviously.
But if they know business, finance, marketing, and they differentiate their success through
the skills of leadership, setting goals, managing others, they have the right to be CEO.
And I think we're going to see a lot more CEOs coming out of the HR space.
We see it in general motors today.
We see it in other companies.
Yeah, 100% and like we were just saying
a lot of small business owners,
they're really wearing dual hats for a long time
as CEO and CHRO.
That's good.
Like right now, I think that's what my dual responsibility
is at my company.
By the way, yes, I wish I thank you for emphasizing that.
That's the point until your company gets a threshold
and I don't know the threshold,
it could be a hundred, it could be three hundred,
I don't need a full-time HR person.
I can contract for some of those administrative things.
You are the CHRO.
Yeah, which is why we had you on today, Dave,
because everybody needs to know about this.
So let's talk about the five general leadership competencies that you talk about.
You call them the leadership code.
I thought it would be fun to do quick style, quick fire style.
And so on, they mount these characteristics.
And then you tell us why it's important to have in a leader.
So the first one is strategist.
If you don't know where you're going, nothing will get you there.
You gotta have a sense of direction.
What do I aspire to?
Vision, mission, goals, whatever term you wanna use?
If you don't know where you're going,
your minds will not get started.
Love it.
Executer.
If you can't get stuff done,
you live in a world of fantasy and vision.
It's a video game.
You've gotta be accountable.
You've gotta be disciplined.
You've gotta get stuff done.
Talent manager. Leaders succeed through others. The four E's.
Empathy, emotion, engagement, empowerment, experience, compassion. You've got to make sure that your
job is building the next generation is helping others. Human capital developer. If people don't
leave their interaction with you feeling better about themselves, you've
not built the next generation.
Totally agree.
Personal proficiency.
Circulate, circle it.
If I had the privilege, I'll have some day of coaching you.
I would end every session with this question.
What are you doing to take care of yourself?
As a leader, if you don't take care of yourself, your own energy, your own space, your own
emotion, you can't take care of yourself, your own energy, your own space, your own emotion,
you can't care for others.
And so, we just had a session yesterday
with a bunch of senior leaders,
and I ended the afternoon with that question,
and it gets into your identity.
You wanna be seen as inventive and as imaginative.
What are you doing to live that?
And are you caring for your physical, personal,
social, emotional, and spiritual needs?
Find the way to take care of yourself. And I think that's very personalized today.
It may be shopping, it may be exercise, it may be scripture study, it may be prayer, it may be meditation, it may be socializing. I hope it's not just drinking. And it may be stupid stuff.
In the 90s, when I was getting stressed,
I would write two episodes of Seinfeld.
I have no clue why, but it calmed me down.
It was just such a nothing show and silly.
So I just, by the way, I'd love to ask you,
your listeners have listened to you for years.
What do you do to take care of yourself?
I love to work out. I do trampoline workouts. I have a mini trampoline in my
apartment and I do lots of different workouts like that. I love spending time
with my loved ones. And I totally agree with what you're saying because it goes
back to this energy management thing. If you don't feel good on the inside,
you're going to make bad decisions in terms of how you treat other people
because you feel crappy and you're in a bad mood.
So you always want to elevate your mood because it's trickles down to the entire organization.
You know, listen to yourself.
By the way, and we all get overstretched.
I've been there.
We've all been overstretched.
And especially in today's mental health, a few days ago, I found myself getting snarky.
I snipped at somebody.
And when you see as a leader yourself doing that,
go into your room, sit by yourself and say, what do I need to do? And again, it can be exercise,
it can be nutrition. Lately, I have found I go sit outside on my patio and read a novel for an hour.
By the way, that's not what anyone else would probably do, but you've got to recognize as an
entrepreneur, of course, you're going to be pushed to your extreme. If you're not being pushed to your extreme,
you probably won't succeed, but you've got to find space to care for yourself so you can
care for others. That's a personal side. Yeah. And so you probably didn't expect this,
but I heard you have a leadership code 2.0 of emerging competencies. So navigating paradox,
risk without recklessness and meaning maker. Is there anything
you want to share about these ones? I'd add the other one personalized paradox. You know what?
The world we live in is paradoxical. We love to have simple answers, manage paradox, get rid of it.
Should I be long term or short term? Yes, should I be top down or bottom up? Yes, should I care for
people or competitiveness? Yes.
The tension of paradox creates innovation. Meaning maker, we've talked about it. Your job as a leader
is to make others meaning happen for them. Personalization is the one I'm seeing lately.
Can I help other people build their identity? I'll tell a story and I know we're running on time.
I'm coaching this woman who's incredible. She was born in the Philippines in a hot went to school at age six didn't know how
to read and write. I'm going to fast now really quickly. Twelve years later graduated top of the class
went to a US university valedictorian went to Harvard, speak six languages fluently, got a
joint graduate degree at MIT, worked in the Russian embassy, was senior executive
in Microsoft running Asia. Unbelievable. And by the way, you've met these people on your
show. Let me just be clear, I'm not one of them. This rags-to-richest story is just amazing.
She became the president of a university with 40,000 students. Everybody wants Dr. Tumin
as to tell her story, because it's so compelling. When I
coach her, I was counterintuitive. Don't tell your story. By the way, she's proud of her story. She
should be. It's an incredible story. Here's your job as a leader. Can you help 40,000 students create
their story? And it's not going to be yours. Let's go talk to a student. It's a mother.
I mean, one of the stories,
and it just feels so emotional.
It's a school with just an incredible school.
She started, it was a school.
She got married, young, had some children.
At age 28, she's coming to school
part-time with two children,
pregnant, and her husband passes away.
Oh, wow.
At age 31, she gets her degree.
And she talks to the president of the university, Dr. Tuminez, and she says, thank you for creating
a school that allowed me to care for my children.
And now I have a degree, and I will care for my family.
She's not Dr. Tuminez.
Her story is not the same, but she's created her story.
By the way, my bagum, all the entrepreneurial leaders, I'm going to
say it again, probably for the fifth time, make sure people leave feeling better about
themselves, help them create their identity, their story, because that's what true leadership
is. Am I helping others create their story that works for them?
Yeah, and it all starts with every single interaction that you have with an employee, whether
it's on Slack, whether it's in a meeting. If we all just think about that, can I make this employee feel better after this
meeting rather than worse? Then you're incrementally making progress and there'll be a big ripple effect
over time. By the way, you just made me feel good and bad. We grew up with a group of students
last night and I said to them, email me a question. They said, how old are you?
And they said, we're on Slack.
And I said, I don't even know what Slack is.
And you just mentioned Slack.
So you've made me feel like I better go learn some of the later technology.
And his Slack is just like a messaging tool where you can message people all day at work.
I know.
And it's Instagram and I'm going to learn it.
I'm going to learn it.
Awesome. Well, this was such a great conversation. I'm going to end this conversation with a
couple questions that we ask all of our guests. And then we do something fun at the end of the year.
So the first question is, what is one actionable thing that my listeners can do today
to become more profiting tomorrow? And profiting doesn't have to just mean money.
Find somebody you're grateful for
and tell them, thank you.
Ooh, love that short and sweet.
And what is your secret to profiting in life?
Just have fun.
Why?
Because if you're having a good experience
at whatever you're doing, even if you succeed or fail,
you're gonna learn from it.
Enjoy the moment, savor that moment, and think about what's good.
I could give you a long answer, but just the first thing that comes, we did a book called
Why of Work and the seventh dimension of success at work is enjoy the job.
Have fun.
And job work is sometimes a four-letter word.
It's not always easy.
It's sometimes tough.
Have fun.
I tried to make jokes today.
I tried to have fun.
If you're having it, people will leave the interactions feeling better about themselves. I completely agree. And I have to say that we spend so much
of our lives working. Why not pick something that is fun? And to your point, remember that
life is not just about work. And if we can make work fun, then we get to learn in the process
and have a more enjoyable life. So. So I'm going to ask you a question before you end. Yeah.
Because I think a lot of people end with your question.
You've done dozens and dozens.
I look at the list of people you've interviewed.
I'm just a spellbound.
What's a message you hope your listeners get as they listen
across all these outstanding discussions?
What would you say?
I'm now repeating the question back to you.
What do you hope people get?
I hope that people start to realize that life is limitless and that literally every single
goal that they want is achievable. If they believe in themselves, if they put in the hard
work, if they keep learning, and like I said, if they really truly believe that anything
is possible. So that's what I want them to learn.
I love the, I wrote down the word limitless. Thank you. That's very helpful for me. Thank you.
Of course, Dave. Thank you so much for joining us on Young Your Profiting Podcast. Where can our
listeners learn more about you and everything that you do? I'm on LinkedIn a lot. I know you've
done a lot of LinkedIn folks. Somebody said, Dave, you must have a team of five people. I post every
Tuesday and I respond to comments. I love LinkedIn as a global
water cooler. I don't care where the comments from, but I love to learn and LinkedIn has become
my platform. Amazing. So you guys have to go check out Dave on LinkedIn. He also has tons of
books. We'll link them in the show notes. Thank you again for coming on the show. Thank you.
Thank you. Well, that's a wrap, yeah, fam.
The father of modern HR, Dave Ulrich.
I hope everybody tuning in took notes because the things we talked about today are not
just relevant for HR leaders.
They're relevant for all leaders.
In contrary to popular belief, HR is more than just policing employees and workplace etiquette.
HR is not just about HR.
It's about helping your company succeed in the marketplace.
And the goal of any good company is to be profitable, right?
And that means you need to have happy customers who continue to buy and who recommend you to
their friends.
Dave says the biggest influencer of customer experience is actually employee experience.
And as leaders, we have our responsibility to bring positive energy into our organization.
Our main job is to manage the energy of the company, in my opinion, because people are
going to mirror that energy.
And something that personally stuck for me in terms of what David talked about in this
episode was to try and make people feel better every time you have a conversation with them.
Remember, people remember how you make them feel.
They don't necessarily remember what you said or how you said it.
They remember how you made them feel.
And so when you're a leader, a lot of people that work with you or work for you, look up to you, right?
And those little interactions mean so much to them.
And so you have to make sure that you are giving feedback out of a place of respect and
that you are looking for the good in people and don't think twice to give a compliment.
It's super easy as leaders to get so busy that we only
focus on telling people what they're doing wrong and pointing out all the problems because of course
we're moving really fast and we want to make sure things are better and so we're like, hey that was
wrong. Can you fix that? Hey, I saw this mistake. Can you make that better? But the thing is, is that
we forget to call out the things that are going well, because we're so busy,
but you need to step out of that and realize
that people will be more motivated
and will do better work when you appreciate them,
and when you're not only looking for the bad,
and you're also looking out for the good as well.
The other thing is you wanna make sure
you're giving feedback in a way that's not condescending.
It's totally okay in an everyone's best interest
to tell people how to improve themselves.
But make sure that you do it in a way
that is sensitive and patient
and make sure that you highlight
where they shine equally as well.
And don't be afraid as a leader
to let the emotion come through.
Let people know that you care about them in a real way.
Too many people are against showing a
motion at work, but you spend a third of your life working. So it's okay to love your employees and your
coworkers. And I'm not saying being inappropriate or having a romantic relationship. I'm talking about having
real genuine friendships and not thinking of it as just a work relationship. Because when the people that work for you
feel cared for and feel safe,
they're gonna feel more motivated
and they're gonna work harder
and they're gonna be more loyal.
And this is something you can keep in mind
whether you're a student at college
working on a team project or the CEO of a company.
Dave also said that as an entrepreneur,
you should be spending a day a week
or 20% of your time thinking about the people on your team. This was certainly a wake up call for me because I definitely
don't spend a day a week thinking about my team. I'm not thinking about, are they the right people,
how am I recruiting them, how am I making sure they have a great experience, and how do I
improve the culture. And this definitely made me realize that I need to spend more time in this
area.
And the other thing I don't want you guys to forget is that individuals can be champions,
but it's the organization that wins the championships.
In fact, according to Dave, organizations deliver four times more business results than
talent.
Think back on the story Dave told about Michael Jordan.
When his personal scoring average was at an all time high, the team wasn't making the championships,
but when his score dropped 20%,
his team started winning.
And that means that when he started working
with the team better and made other people better,
the team succeeded because the team is more important
than the individual, the team is stronger
than the individual. Individual team is stronger than the individual.
Individuals can be champions.
The teamwork definitely makes the dream work.
Another huge lesson for me is that organization is not structure.
It's not your org chart.
It's not about who reports to who.
Your organization is your culture or your capability.
Your organization is defined less by hierarchy and more by the
capabilities it possesses or what the organization is known for in the market. It's really your
brand. So for example, Marriott is known for service. Disney is known for guest experience.
Google is known for innovation. And when focusing on organization as capabilities, the goal is
to identify those capabilities or shared purpose that will add value to customers and
investors. And then you want to embed that in the organization. So how do
you embed something like innovation into an organization? You hire the right
people. Once you know what you want your organization to be known for in the
market and what differentiates you, you need to proactively recruit people
that are gonna help you differentiate
because they embody that quality.
So if you wanna be innovative,
you wanna make sure that you're hiring people who are creative,
who are thinking out of the box
who have had previous experience showing
that they are innovative people.
Or if you wanna be reliable,
focus on recruiting organized, structured, timely,
and responsible people, right?
So that is a really important lesson.
Whatever you want your company to be in the marketplace, you need to make sure your people match that.
And I think that was definitely an aha moment for me.
The last thing I want to leave you with is a question to ponder.
It's the question that Dave said he would ask at the end of every session with me if he had the chance to coach me. And that question, what are you doing
to take care of yourself as a leader? Because if you don't take care of yourself and take
care of your own energy and your own space and your own emotions, you cannot care for
others. Thank you guys so much for tuning in to another episode of Young and Profiting Podcast.
If you enjoyed this episode, be sure to share this episode with your friends or your family
or on social media.
I love it when you guys tag me in your story.
Show me that you're listening.
I'm at Yap with Hala on Instagram.
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I'm also on TikTok at Yap with Hala.
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So if you enjoyed to watch these podcast episodes, definitely check us out on YouTube. Our videos are amazing. Shout out to my video production team.
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this is your host, Halaola Taha, signing off. [♪ OUTRO MUSIC PLAYING [♪
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