Today, more than ever, perpetual optimism is the force multiplier (Colin Powell, "My American Journey"). These are perhaps the most turbulent days of our lifetime: rampant uncertainty about the global economy, our jobs, our friends and families’ livelihoods, heath care, education, and global warming, and—to make things worse—a weakening US dollar. These are the times that bring out the best and the worst in leaders.

Leaders that have built their house on a rock of integrity, trust, and customer loyalty will weather the continuing storm. Those that rely on illusions, gimmicks and fear-mongering and have already lost sight of their customers will sink deeply and quickly into the abyss. If you have ever witnessed a ship sinking, the rats are the last to swim away from the vortex. This week’s reading is the November issue of the Harvard Business Review, which, to celebrate Peter Drucker's Centennial, features a collection of articles under the heading "What Would Peter Do?" As you all know, I am a huge Drucker fan.

Over the course of my career I often thought that participating in a startup was an adventure, and it always reminded me of going on research cruises. Although several weeks at sea might seem short, activities and events at sea are accelerated at speeds unimaginable, so it is actually a great metaphor. At the beginning of a cruise there is always uncertainty and doubt about the weather, the equipment, but most importantly the people. And unless you have personally handpicked all of your crew/employees, you have no idea how people will adapt and what leadership actions you will execute during your business voyage.

There is really no difference in a startup or small business today. In some cases, you need to act rapidly and effectively; in others, time is your friend and using your best gut judgment is king. The really big difference is there is no day-to-day nausea of sea sickness to deal with in addition to the lack of sleep, but that may not be the case for many employees today.

How employees think and act in turbulent times

Employee thinking revolves around leadership:
  • Do I have confidence in the management’s decision making?
  • Do I trust the company and leader’s value system and integrity?
  • Are our leaders empathetic and understanding?
  • Is there fairness in decision making across the organization?
  • Can I trust the company’s business model?
  • Is my job safe?
These are all vitally important human issues today that seriously impact performance, productivity, innovation, attrition and your ability to conduct business. Dealing with them in an open, honest and fair environment will only deepen employee loyalty over the long run.

I have learned that there is no more powerful radical in the organizational equation than the negative power employee. They must be identified, controlled and/or expelled from organizational culture, if necessary. This is the most important task of the sea-going scientist manager, and the same goes for startup management. Negative power people will destroy the very basis of your management foundation and have the potential destroy your relationships with employees, customers and partners alike. On every ship I sailed on over a course of ten years, there was always at least one negative power person.

Some employee actions in turbulent times revolve around:
  • Loyal employees persevering and maintaining focus and culture.
  • Lack of management trust results in a serious lack of morale.
  • The negative power people and managers wreak havoc by poisoning your relationships with employees, customers and partners.
  • New siloed political groups emerge across the company.
  • The best employees seek other opportunities, leaving behind a culture not favorable to the high performers.
  • Fear uncertainty and doubt creates apathy that drives down productivity and kills innovation.
How many of you have identified and dealt with the negative power people? I would like you to comment and share your management tactics.

Net/Net

One day I saw a bumper sticker that read, “There is no government like no government.” I thought to myself, well, if that’s the case, what about “There is no management like no management.” There are many dysfunctional companies that creep along, even some that cruise, with weak and unsupportive management cultures. In the end, they almost always fail.

One of the hallmarks of successful companies today is great management culture with a clear voice and vision of the future. Those are the companies that attract and keep the best, because their managers are clearly focused on establishing and managing people to their highest abilities. Successful managers today need to be more sensitive to the human needs of employees, they are part therapist, mentor, teacher, but most of all they are fair and drive the best from the best. Being tough on employees that are challenged with work and family issues in these times doesn’t work. Have more frequent one-on-one discussions with employees and most importantly preserve their trust. They will be there for you when the going gets tougher.

The personality of fish: Killer whales in the Sea of Cortez

Who would have thought there would be Orcas in the Sea of Cortex? Well, here is proof. This picture was taken two weeks ago about 50 miles off Puerto Penasco, in Sonora Mexico. The Marine Mammal Protection Act of the 1970’s has been one of the only regulations that have had significant impact on the marine mammals in the US. In the Sea of Cortez, marine mammals are alive and well. During the course of our eleven hours at sea we encountered more than fifty whales in addition to huge pods of dolphins and a small pod of killer whales. These animals are at the top of the oceanic ecosystem and appear to be thriving in North America. This is extremely good news for our oceans.

Marine mammals, especially whales, are like fishing boats that harvest nearly twenty four hours a day. They herd schools of fish and at times blow large clouds of bubbles underneath prey to concentrate them. They feed on plankton, bait fish and sometimes—in the case of the killer whale—they will separate a baby whale from the pod and feed upon it. Whales in general are some of the most unstudied creatures on earth, and many of their habits and migratory patterns are unknown, especially their communications. I am sure that many of you who have encountered a whale remember the almost human look that a whale eye casts upon you when it looks up from the ocean. In these turbulent times, be understanding when your employees cast a worried eye in your direction. Be a leader with compassion and great selling and marketing in Q4!