RSM McGladrey ESOP Blog

We Need To Believe In Something

I watched a great movie called Second Hand Lions with Robert Duvall and Michael Caine.  In the movie these two great uncles raise their nephew, and in one of the scenes Michael Caine says to his nephew, "People have to have something to believe in.  It is what keeps us going".

What do your employee owners believe in?  Have you given them something that they believe in, something that they will follow passionately? 

Take some time to think on this - for yourself and for your ESOP company.  Belief in something bigger than ourselves gives us a purpose.  It gives us something to focus our energy on.  It adds meaning to our daily lives.

I would love to hear what your employee owners believe in.

Make a Choice

Are you a victim?  The vast majority of people in the workforce today feel like victims.  The reason: they are afraid to make choices.

It is easier to sit back and point the finger at your boss, the company, your spouse, and a host of other scapegoats.  The saying, "When you point your finger there are three fingers pointing right back at you," is so true.  We do not want to own up to the choices that we have made and for good reason.  It may take some serious thought as to where the original choice was made that enables you to be the victim. 

Somewhere in your past you made a conscious choice - you alone - no one was there to twist your arm.  Maybe you did not spend the time or get the information that you needed to make a good choice - but you chose that scenario as well.  At some point in our younger years, we are evolved enough to know that we live with our choices.  Too many people go to the grave still choosing to be a victim.

A short list of important choices:

• Getting married
• Having children
• Buying new instead of used
• Eating a donut instead of an orange
• The attitude I will approach my day with
• To exercise
• Getting a divorce
• To quit feeding my brain and my soul
• Using credit cards
• Not taking vacation
• Buying a home
• Last but not least - NOT TO BE A VICTIM

The Authentic Owner

So as an owner, are we authentic or fake?  An article by Jay Walljasper of Ode magazine, gives an interesting view on authenticity and how it is impacting our world.  He states that people are looking to match what is inside of them with what they are doing on a daily basis.

I believe there are many companies that claim and brand themselves as employee owned, but with no authenticity.  When you talk to these employee owners, they speak and act as most employees in any company - blah, bored, and tied to the job.

Authentic employee ownership starts with these important traits:

• Leaders that walk the talk
• Practice open book management
• Employee owner communications committee
• All employee owners have a path of input into the business
• Opportunity for personal growth
• An environment of laughter and fun

So how does your company stack up?

Staying On Top Of Your Game

When you are in a position of leadership, you are always in the fish bowl.  Those who you are leading are always watching you and evaluating your every move.  You can ill afford to have an off day, even an off moment.  So how do you stay of top of your game as a leader?

Leaders need to have an available pool of resources to use in their moments of need.  One tool that is very effective at refocusing your mind, shifting your attitude, and putting things in perspective is a "feel good file".  This file should contain letters and notes from former bosses, peers, teachers, parents, and others.  The file may also contain articles that you have read that give you inspiration.

When you know that you are going to be in a key leadership moment and your frame of mind is not on track - that is when you pull out the "feel good file" file.  Within in five to ten minutes of reading this material, your mind, spirit, and body will shift.  You will gain confidence, take on a new perspective, and reassure yourself that you are capable of handling the impending tough or crucial issue.

Technorati Tags: leadership, motivation

To Tell The Truth: Part 2

The following are two examples of where I have struggled to tell the truth.

I owned a cleaning business and we had several business accounts where our employees cleaned while the business was open.  One day I was approached by the owner of one of these businesses and he said, "You have to do something about your cleaning people's hygiene.  You have one gentleman that needs to take a bath and tell him his mustache does not grow out of his nose."  Of course I told him I would take care of it.

I could have easily just went to the employee and told him, "If you do not bathe and clip your nose hairs, you are fired," (which would be typical in many companies.)  So how do I tell him? How do I motivate him to bathe and clip, keep him from leaving our company and keep our customer happy? 

I took him to lunch at a restaurant that was located close to a meat packing plant.  If you have never been around a meat packing plant, they have a distinct odor.  He commented on the smell which gave me the opening I was hoping for.  I said, "Is it not weird how some people can tolerate and live by this smell, while others would never come close to it?"  He agreed emphatically as his nose curled.  I then moved to the truth, "We have a client that we may loose due to something very similar.  It deals with your hygiene, specifically your body odor and nose hair.  Some of the people find it offensive."  He commented, "If I smell anything like this meat packing plant, I would complain to."  Needless to say, we finished the conversation, solved the problem, and his hygiene was never a problem again.

This next example is never fun and I always hated it - telling someone they are terminated.  You have gone through the performance problem process.  It includes conversations, meetings, and written documentation of the issues that have led you to decide that someone must be terminated.  Many people feel that once you have decided, you should act on it immediately - tell the truth.  I have not always done this.  I have been accused of being chicken, sneaky, unsympathetic, and other words that are not fit for this blog.

The decision has been made to terminate someone, but there are issues to consider:

• By waiting they could get the company paid health insurance for another month
• They have a child that is graduating from high school - do it before or after?
• They are going to the doctor for some health issue - do you wait to hear about the results?
• A major project for the company will be completed if we wait
• Someone else may quit if we do not take immediate action
• If we wait a few weeks, they can receive their ESOP allocation
• They are going on a two week vacation - do you tell them before or after?
• They are going through a divorce
• Their father just died - do you wait until after the funeral?
• You know that they are thinking about buying a car or home

What would you do in these scenarios?

Tell the truth - it is the right thing to do.  When and how?  These are the questions that good leaders spend a lot of time thinking about and getting input from others.

Technorati Tags: truth, leadership,

To Tell The Truth: Part 1

As a child, we are told over and over to always tell the truth.  In my days before a regular full time job, I still held on to that mantra.  Then I took my first job at the YMCA.  One could say that I was a bit of rebel - long hair, earring, and took every task to heart.  This also included telling the truth about how I felt with policies, personnel issues, and strategic goals.

Needless to say, I eventually found myself in the CEO's office.  Where he then had the audacity to tell me that always telling the truth may not be a good thing!  I am thinking - "hold on there mister big wig CEO" - I have been told by teachers, parents, pastors, and pretty much everyone that I should tell the truth.  So I blurt out, "Are you crazy? You always have to tell the truth."

He replied, "Yes, you should always tell the truth, but you need to be conscious of when and how the truth is told."  Long story short, we spent the next hour discussing this topic.  I walked out with some serious questions about what everyone had told me for years.

I must say that this CEO's wisdom has proved very valuable to me over the years.  There is no replacement for truth, but when and how we tell the truth ... well, there are million different ways with a million different results.  I have reviewed this truth conversation many times since as I have had to deal with difficult situations.  In my post on Monday, I will share some examples of the struggles I have had in telling the truth.

Technorati Tags: truth, leadership,

Leadership Transitions

I just attended a morning presentation on "Succession Planning - Leadership Transitions."  It consisted of a panel of CEO's and a professional consultant on leadership development.  They dealt with leadership transitions at the CEO level.  I thought it was interesting that there was not one comment about leadership transitions at any other level of the organization.

I clearly understand that the top leadership role is vital to a company, but I firmly believe that every leadership role in a company is vital.  In an ESOP company this is even more paramount.  Just imagine what would happen if the processes used to fill the CEO position were implemented company wide!  Of course it would be a variation, but the purpose and key items would be consistent.

I am sure you know of many situations where a leadership role was filled, they failed miserably, and then they were released by the company.  The statistics for CEO's is that 40% of them fail - I would  bet this is very similar for all leadership positions.  In most cases, it is not the person's fault, but the fault of the company for not having a well developed leadership training/transition plan in place.

Do not wait for a "event" to start looking at leadership transition in your organization.  Start the process today; make it a part of the daily routine - tomorrow may be to late.

Technorati Tags: leadership, ESOP, business succession

Who takes the first step?

Picture this - You are in a scary movie, running from the monsters who will consume your body and soul.  Now there is a group of you running in the same direction.  Suddenly, there before you is a vast expanse of waist high fog as far as the eye can see.  No one knows what lies ahead.  You see them looking at each other wild eyed, fearing for their safety, waiting for someone to take the first step.  The anticipation builds, will the monsters devour them or if they move on what other disaster will await them.  The movie ends.

I would bet that some of you are saying finish the story, why did you stop, what is the point.  Here is the point - this is the story of the majority of workers in the U.S. today, but it is worse.  How?  Because there are entitled leaders in their groups - they are called bosses, supervisors, CEO's, managers, or other names.  They are given power, have knowledge, but so many of them vanish into the group when they are between a rock and hard place.  They will not take the first step, they will direct someone else to do it, they will shove one of the group into the vast fog, they will hide and wait for someone else to take the risk, basically they just wimp out and try to blend in.

The true leader is willing to sacrifice themselves - take the first step, take the heat for a mistake, clearly let everyone know what might happen, they do not blend in - they are noticed.  Being noticed does not mean that they have to be outgoing, powerful speakers, or exuberant all the time.  It does mean that they are there to serve the people and organizations they lead with integrity, humility, respect, and communication.  With this type of leadership, employees will enter the fog expecting to find growth and opportunity instead of a life ending monster.

Technorati Tags: monsters, leadership, movies

The Beginning

Greetings to all of you as you visit this blog for the first time.  This blog was created to spread the news about ESOP (Employee Stock Ownership Plan).  ESOPs offer the owners an exit strategy, the employees an opportunity to become owners, and the company an opportunity to conduct business in different ways that creates more value.  Sounds too good to be true - not at all.  I will guarantee that it will be hard work, as anything successful is!

This blog will expand, explain, and converse on the topics of company culture, leadership, teamwork, participation, communication and how this can drive company performance - maybe even change the world a bit.  It will touch on technical issues of ESOPs at times, but for most of this technical conversation I will redirect you to others for this sage information.

So who am I?  I am the mad doctor, the shaman of change, the challenger of the status quo, but mainly I am just Victor.  A person who has owned his own business, led an ESOP company, worked at a YMCA camp for 13 years, held numerous other positions,  and believes in the power of people.

So without a lot of noise, a very exciting event has begun.  I encourage you to come back, post your questions, throw out new ideas, and join in this wonderful conversation about employee ownership through ESOPs.