by Kevin Ross, Managing Consultant | Sep 27, 2016 | Organizational Effectiveness
– “Can we all get along?” Rodney King III
Late in my Air Force career, I had the great fortune to command a fantastic group of diverse, talented Airmen. The only downside was that we lacked sufficient personnel and resources to be fully capable of executing our assigned mission, which pitted me against my peers in a competition for more – more people, more money, more equipment, and more priority. I thought it was the perfect job for me, because I’d spent most of my career competing for more. (more…)
by D. Kevin Berchelmann | Sep 14, 2016 | Brazen Leader, Executive Improvement, Human Resources, Organizational Effectiveness
I hate to call anyone a crook. It sounds unseemly and judgmental, and just a tad juvenile…
Ah, to hell with that. Wells Fargo, you guys are a bunch of crooks. Specifically, the leadership involved in the fraudulent account processing debacle. 
Yes, the leadership, not the schmucks that
leadership whacked in the process.
The numbers, for you analytical types:
- 565,443 — The number of unauthorized credit card applications filed by Wells Fargo’s community banking division
- 1,534,280 — The number of unauthorized deposit accounts opened by Wells Fargo’s community banking division
- 5,300+ — The number of schmucks (mentioned above) fired for actually opening these fraudulent accounts
- $185,000,000 — The amount of the fine levied on Wells Fargo for this fraudulent activity
- $200,000,000 — The amount of stock held by John Stumpf (just “Stumpy” from here on)
- $19,000,000 — The amount of money Stumpy hauled in last year.
- $125,000,000 — The amount to be paid to Carrie Tolstedt, the executive in charge of these fraudulent activities
- $20,000,000,000 — The approximate dollars in annual profit made by Wells Fargo
- 0 — The number of senior leaders held accountable for this travesty
Here’s the deal… there’s simply no way that 5,300 people–all doing the same job for the same division–can be fired for fraudulent (potentially criminal) acts, and no one in real leadership was aware of the problem. Just no way. Think about it–that many people whacked, same division, same job, all for fraudulent activities in a bank. And no one noticed? That’s your story? Seriously?
I call bullshit.
If you hold a gun to someone’s head and say, slap Bill over there or I’ll pull the trigger, well, Bill’s about to get slapped. It doesn’t matter that you aren’t the violent type, that you’ve never hit anyone in your life, or that Bill is a helluva good guy. None of that matters. What matters is you have a gun to your head. The schmucks fired at Wells Fargo, all likely justified for doing something way wrong, had guns to their heads.
Over aggressive daily sales quotas; hourly (yes, you read that right)–hourly–conference calls to make sure your quotas are on track; after-school detention overtime and forced marches on Saturdays for anyone coming up short. And if you came up short after two months, you got whacked. I’d say that feels like a gun to the head. Held there by senior leadership at Wells Fargo.
The push was relentless, and making these arguably unreasonable quotas was not simply an issue of performance–some personal bankers had as much as 20% of their total compensation tied up in sales commissions from these extra accounts. In other words, another gun. I’m not excusing criminal or unethical behavior by those doing it; the firings were likely justified, and behavior like that is deplorable no matter the incentive. But to just punish over 5,000 workers while senior leadership is not just held unaccountable, but rewarded with mucho dinero?
In a 2013 interview, Wells Fargo CFO Timothy Sloan said “I’m not aware of any overbearing sales culture.” Where’s that bullshit flag again…? I’m throwing it. Of course, Timmy had good reason for–and was rewarded for–his ignorance; he’s been promoted twice since that interview, and is now heir apparent to Stumpy himself. Things that make you go hmmm. I’m certain it’s just a coincidence…
Stumpy doubled-down on his perception of executive innocence in a Sep 13 WSJ article, stating “There was no incentive to do bad things,” and that “…some employees didn’t honor the bank’s culture.” And what, exactly, might that culture be, bigshot? My favorite Stumpy quote: “I feel accountable.” Not “I am accountable.” Tweeeeet! Throwing my flag again…
Leadership matters. Ethics, integrity, even simple honesty, are all driven from the top. That which you condone, allow or permit, through action, inaction or positive consequence, is what you get. Culture really is that simple. Honest leaders get honest employees (for the most part). Ethical senior leadership promotes ethics and integrity throughout. Conversely, fast-and-loose behavior at the top creates a culture of shady corner-cutting throughout the organization. Plausible deniability is a good movie line, but it sucks when used by senior leaders to allow bad behaviors to boost profits.
This is Stumpy.
Stumpy likes money
Stumpy doesn’t question where it comes from
Stumpy’s people get him money
Stumpy makes lots of money
Don’t be like Stumpy
Be Brazen…
by D. Kevin Berchelmann | Aug 28, 2016 | Brazen Leader, Miscellaneous Business Topics, Organizational Effectiveness
Don’t get caught with your pants down.
That idiom has its origins in the Roman Emperor Caracalla, later known as Marcus Aurelius. He was known as one of the bad-ass Emperors somewhere before 200AD. Legend has it he was killed while relieving himself, hence 
“with his pants down.” Though it may actually have been a robe. Or chainmail. Whatever he was wearing, he had it down and he was killed. Going forward, warriors took care of their business with sword in hand, so not to be “caught with their pants down.”
So, what does this incredibly interesting trivia lesson mean to you? Funny you should ask…
Simply put, in the people equation, demand has—and will continue to—outpace supply. Our recent 2016 Survey of Senior Leadership (SSL) ranked Talent Acquisition/Talent Management as the #2 Leadership Challenge today. Behind only Revenue/ Earnings Enhancement, the perennial #1 for many years.
I know what you’re thinking… War for Talent?? Seriously? Oil is at or around $50. Global layoffs in oil & gas exceed 350k in the past 18 months. Article after article tells of the woes of recent graduates, unable to find anything but McJobs after incurring a bucket-load of student debt.
I was born at night, you say, but not last night.
Yeah well, listen up—it’s happening. We’ve got something of a perfect storm brewing for talent.
Demographics: Baby boomers continue their exodus. And many are stepping aside from leadership roles even if not leaving the workforce. Millennials aren’t just looking for a job, they are seeking specific roles with specific returns and rewards. Simply “needing to work” isn’t enough to cause action if the position and company aren’t a perceived fit.
Market stabilizations, though welcome, mean that hiring simply must take place. Some layoffs were too deep, others brought to surface shortfalls heretofore unrecognized.
Increased employee turnover is an added dynamic. National turnover rates in the U.S. continue to increase, nearly doubling (yes, you read that right, doubling) in the past four years. In other words, you’ve got to plan for new hires and replacement hires. And remember that about half of all that turnover occurs within the first 12 months of hire. Put that in your pipe and smoke it…
We’ve got to pay attention here, and plan for reality. Here are some simple suggestions:
No, really… plan for hiring well in advance of desperate need. Identify what you truly need, and project out for at least a couple of quarters (a year is better).
Be willing to hire when the right candidate is ready. Not when you’re ready, necessarily, but when the right candidate is ready.
Charge recruiters with keeping an eye out all the time. If they stumble upon someone available today who fits a Q3 need, see #2 above.
Be slower on staff reductions. Give market and company conditions some time to equalize. I know the short-term pressures can be big, but longer-term failures due to talent shortages are bigger.
Leadership matters. People will stay with effective, meaningful leadership. They’ll leave if it doesn’t exist. We know that now, so act accordingly. Employee referrals increase when leadership cares. We know that, too. Plus, engaging leaders drive discretionary effort; new hires and incumbents succeed more often with engaging leaders.
Talent matters—nothing new there. The right talent can be difficult to find even when you receive 400 
applications/resumes. Ask anyone responsible for recruiting today—they’ll tell you. Bodies are plentiful, specific talent… not so much.
Sort of like the Twilight Zone episode, Where is Everybody?
Know what’s coming, and get ready.
Be Brazen.
by D. Kevin Berchelmann | Aug 23, 2016 | Brazen Leader, Executive Improvement, Kevin Berchelmann, Organizational Effectiveness
This is an area where mediocre leaders just don’t get it.
And because of their egocentric defensiveness, they lose a ton of credibility.
Without writing a treatise here, suffice to say that there are three very simple things that a leader can do to set himself apart (positively) from the pack: (more…)
by D. Kevin Berchelmann | Aug 16, 2016 | Brazen Leader, Executive Improvement, Miscellaneous Business Topics, Organizational Effectiveness
As do many of you, I travel a bit.
During the last several months, as I travel around, I’ve been asking people I come in contact with two questions:
- Do you like your job?
- Why or why not?
Creates some interesting conversations, I’ll tell you. Almost missed a flight out of Baltimore when my conversation with the Hertz counter rep went into overtime.
I jotted down fairly copious notes for these discussions. And though I realize the lack of statistical “rigor” in my survey methodologies, I think the results were interesting nonetheless.
In about four months, I spoke with 56 people about this. Most readily answered my questions. Some, of course, seemed hesitant to respond candidly to such questions from an unknown traveler (go figure). Most, however, spilled their guts without a drop of hesitation.
16 people said “yes, I like my job.”
11 said “It’s OK,” or “It’s a job,” or something equally noncommittal and nonplussed.
26 replied “no,” or something equally negative. A few expletives were included in several.
(for you math whizzes, this doesn’t total 56; 3 would not answer the question at all)
The #1 reason given for “why?” with those 31 who said, “yes?”
They let me do my job.
Not “the money,” though most in this category did mention the pay was either “good” or that they felt paid “fairly.”
Not “it’s easy,” or “I don’t have to do much work.”
Nope, not those things we frequently imagine are in the minds of employees who seem satisfied, contended, or otherwise happy to work for us.
They let me do my job.
Never forget — the vast majority of successful leadership application is not some fancy buzzword, or the chapter title from some consultant’s new glossy book.
It’s the basics. It’s blocking and tackling.
So, what’s the take-away from this incredibly scientific, statistically strict employee survey?
- Hire right. Attitude, integrity, intellect and work ethic… none can be trained, all must be hired.
- Set and manage expectations. Keep it simple, folks.
- Empower people to do their jobs, and expect that they will.
- Rinse and repeat.
Don’t make this harder than it needs to be.
Be Brazen.
by D. Kevin Berchelmann | Aug 8, 2016 | Executive Improvement, Kevin Berchelmann, Miscellaneous Business Topics, Organizational Effectiveness
Training is essential for success—always has been, always will be. But like everything else, not all training is created equally. Nor is there a one-size fits all when it comes to teaching employees. And that’s true for leadership – technical, interpersonal or whatever it may be. But there are tried and true strategies for success that can lead to more effective employees, a happier workforce and a better organization. Here are 3 key strategies for training employees that can make the process more endearing for all those involved. (more…)
