Assumptions Have Expiration Dates

May 16th, 2011

Last month I was a judge for the International Collegiate Business Strategy Competition, which required graduate and undergraduate students to compete against each other in starting and running a business using a sophisticated computer program. One of the most important lessons learned was articulated by members of an MBA team whose seemingly effective strategy went down in flames at the very end: assumptions have expiration dates. That is, leaders must constantly check to be sure that the bases on which they make decisions remain sound and have a specific purpose that continues to serve the organization well.

How many of us question our own assumptions, and those of organizational leaders? How do we even know whether our assumptions are still effective? Here are three ways to determine whether any given assumption remains viable or whether it has reached the end of its useful life and must go:

    1. The answer to the question, “How’s that XYZ (i.e.,
    position/concept/process/system/program) working for you?” is negative.

    2. No one can remember the purpose of, or reason for, doing XYZ.

    3. If you stop doing XYZ, there are no adverse consequences. Things may even improve!

And by the way: the phrase “We’ve always done it this way” is a dead giveaway that inertia is at work, which means that assumptions definitely need to be re-visited.

I invite you to put your assumptions to any one of the above “tests.” If they pass, the assumptions probably continue to serve your organization well. If they don’t, it’s time to toss them, as they have outlived their usefulness.

© 2011 Pat Lynch. All rights reserved.

  • Print this article!
  • Digg
  • Sphinn
  • del.icio.us
  • Facebook
  • Google Bookmarks

How to Create an Effective Bonus Program

May 13th, 2011

Will including a bonus program in your compensation system help your organization achieve its goals? If so, how do you structure the program so it is most effective? Recently I was interviewed about this subject; I invite you to read the resulting article, 4 Tips for Creating an Effective Bonus Structure, by Katie Morell. And let me know what you think!

© 2011 Pat Lynch. All rights reserved.

  • Print this article!
  • Digg
  • Sphinn
  • del.icio.us
  • Facebook
  • Google Bookmarks

How Public Safety Professionals Are Shooting Themselves in the Foot

May 1st, 2011

When the Long Beach Press-Telegram reported recently that Long Beach’s Chief of Police had vowed that the police would “get the job done” regardless of what they were tasked with doing in the face of drastically reduced resources, I had two immediate and contradictory reactions. As a Long Beach resident and business owner, I felt relieved to hear that the police still plan to provide “…the best possible service for the people who are accustomed to that service.” As an expert in resource allocation, however, I thought, “You’ve got to be kidding!” By publicly promising to maintain the normal level of safety no matter what, the Chief essentially gave the City Council the green light to take resources away from the Police Department and give them to other agencies. In short, he metaphorically shot his department in the foot – unless the Police department has been greatly over-funded, and recent budget cuts merely reduced its budget to an appropriate level. Somehow I doubt this is the case.

I’m not picking on the Long Beach Police Chief; he just happened to be a local example of what I’m hearing and seeing in law enforcement and fire service agencies. In both these professions, members tend to downplay the significance of their roles in keeping people safe while routinely putting themselves in danger. “It’s just my job,” they often protest when grateful recipients of their services try to express their thanks. As a result, over time the public began to believe them, and subsequently was lulled into a false sense of security because these public servants make what they do seem almost easy. Few people stop to think about what is required to keep our law enforcement and fire service protectors at the top of their respective games so they can perform at high levels at a moment’s notice. Thus when City Council members or other decision-makers adopt deeply flawed policies like proportional sharing instead of stepping up to the plate and making the tough decisions they were elected or hired to make, there is relatively little resistance from the public about whether the resources are being prioritized appropriately. As a result, we witness scenarios like the one in which a Los Angeles City Council member vowed to save the jobs of the City’s calligraphers (employees whose job is to produce the pretty certificates that Council members like to hand out to constituents) at all costs – even though “essential” jobs such as those of teacher, police officer, and fire fighter were on the chopping block.

The fact is that when law enforcement and fire service leaders continue to assure the public that all is, and will remain, well despite fewer and fewer resources each year, they are doing a serious disservice to the public and to their own employees. While service levels may be maintained in the short-term, they are not sustainable over time: employees get burned out due to overwhelming work loads, and critical, life and death decisions are made by people who are tired and stressed out. When equipment malfunctions, when (or even if) it can be repaired will depend on factors such as when overworked mechanics can get to it, and/or how long it takes for the parts to arrive after someone realizes that no one ordered them since the clerical personnel who handled the ordering were laid off, and/or whether the money to pay for the parts can be found somehow.

In short, the “things will continue to be normal” mantra is a charade that must stop. Decision-makers and the public need to be educated about the trade-offs that result from allocating fewer resources than required to maintain service levels.

Here’s my advice to leaders in law enforcement and the fire service, and to public sector decision-makers: stop it! More specifically:

    1. Leaders in the fire service and law enforcement: I’m sure you believe you’re doing the right thing by assuring the public that you will keep us safe. And I think you are sincere when you say you will do everything possible to make sure that happens. But the truth is that you can’t, at least not beyond the very short term. And in your heart of hearts, you know it too. So please: stop sending the message that everything is fine, and begin to educate the public about what the trade-offs will be when you have fewer resources with which to work.

    2. Public sector decision-makers: stop hiding behind the appearance of doing your jobs (e.g., by implementing ineffective policies like proportional sharing), and start making the tough decisions required to deal with current and future conditions. A good place to start, for example, is by setting priorities and allocating resources based on what is needed to achieve the relevant government entity’s “big picture” (e.g., a city’s vision or mission) rather than on what groups have complained the loudest most recently.

Public sector entities are having a tough time right now, and everyone is suffering as a result. Let’s not compound the existing challenges by setting unrealistic expectations about public safety, and then burning out good people trying to achieve them.

© 2011 Pat Lynch. All rights reserved.

  • Print this article!
  • Digg
  • Sphinn
  • del.icio.us
  • Facebook
  • Google Bookmarks

The Predictable Decline of the Public Sector

April 30th, 2011

Organizations go through predictable stages or life cycles: start-up, growth, maturity, decline, and extinction. They can move backwards through these stages as well as forward (e.g., replacing a “mature” product or service with a more innovative one), and not all of them reach extinction. In order to avoid the decline or extinction stages, organizations must adapt to changes in their environments. We see various types of adaptation every day in the private sector: new products or services are offered while old ones are dropped, or companies merge or acquire others to provide a competitive advantage or enter a new market. We even see re-invention among individuals. A recent story in the Los Angeles Times noted that former (and likely future) presidential candidate Mitt Romney has re-invented himself – again. Why? What he was doing before wasn’t getting the results he wanted to achieve, so he’s trying something different. Most often we think of companies going through such life cycles. However, public sector agencies and government entities also experience them.

Many agencies and government entities today arguably are in the “decline” stage of the life cycle. The world has changed, and most public sector entities have not. Although current economic conditions did not cause the decline, they did bring it forcefully to people’s attention. Procedures, programs, processes, rules, regulations, systems, organizational structures, and policies, many of which are decades old, are not working any more. Individually and collectively, these organizations no longer are able to support the outcomes they initially were created to achieve. Without substantive change, public sector (government) organizations will continue their current downward spiral.

What will it take to reverse this decline? Here are some suggestions to get started:

    1. There must be a compelling and common “big picture” (i.e., vision or mission) that people can buy into. There is a serious dearth of such pictures once you get beyond the agency level. For example, how many cities have a clearly articulated vision?

    2. There must be a commitment to transformative change; incremental change is not sufficient. The current challenges did not arise overnight, nor will they go away quietly or quickly. Change takes time and requires an acceptance of prudent risk-taking.

    3. Begin with the end (i.e., the big picture) in mind; that must be the starting point. Then ask, “Given where we are now, how will we reach the desired end?” Examine closely what is being done, how it is done, and why it is done, then make purposeful choices about how to move forward.

While reversing course is not easy, the rewards are great. And considering the alternatives – e.g., mediocrity, service failures, inefficiency, wasted resources, despair, anger, frustration – one cannot possibly suggest that not trying at all is a viable option.

© 2011 Pat Lynch. All rights reserved.

  • Print this article!
  • Digg
  • Sphinn
  • del.icio.us
  • Facebook
  • Google Bookmarks

Labor Relations: Myths and Realities

April 30th, 2011

Recently I gave a presentation to a group of human resource professionals about labor relations. We covered a wide range of information, including the bases for U.S. labor laws, myths about labor relations, and what employers can do to ensure that employees are a high priority in their organizations. Here are six common labor relations myths, and the realities behind them. See how many of them you can dispel before reading my comments!

Myth #1: Labor relations laws apply only to non-unionized workplaces

Reality: With a few exceptions, non-management workers whose organizations are in the private and non-profit sectors and have one or more employees are covered by the National Labor Relations Act (NLRA) and its amendments. Examples of exceptions are workers in the airline and railroad industries (who are covered under the Railway Labor Act), public sector workers (who are covered under different laws), domestic workers, agricultural workers, consultants, and those who work in family-owned businesses. In other words, federal labor laws apply to most workers in the U.S.

Myth #2: There are two interests represented in the labor-management relationship

Reality: There actually are three “players” in the labor-management relationship who have some divergent and some overlapping interests: employees, management, and unions. Although many people believe that the terms “union” and “employees” are synonymous, they are not.

Myth #3: Only Congress can change or amend federal labor laws

Reality: Unlike most other federal laws, labor laws are changed primarily outside of the halls of Congress. The issuance of presidential executive orders is one way to effect changes that apply to federal contractors and subcontractors. However, the most common way for these laws to be changed is through decisions issued by the National Labor Relations Board (NLRB), which is the regulatory agency responsible for administering the NLRA, as amended. The Board’s decisions, which are rendered based on cases that come before them for resolution, have the force of law. Importantly, NLRB decisions do NOT rely on or honor precedents set by decisions of previous Boards. As a result, labor law provisions can and do change. This means that compliance with federal labor laws requires one to keep a close eye on NLRB decisions, as they are subject to change.

Myth #4: The primary reason employees join unions is economic

Reality: Research consistently shows that the #1 reason why employees join unions is dissatisfaction with their immediate supervisors. Employers who make their workers a high priority ensure that their supervisors are well trained and have the support they need to take care of employees.

Myth #5: U.S. unions are too weak to effect meaningful change in the workplace

Reality: Although only 11.9% of workers in the U.S. were unionized in 2010 (per the Bureau of Labor Statistics), the current President, Secretary of Labor, and most Democrat members of Congress are union-friendly (which is not the same as being employee-friendly). Separately and together, people in these positions can use their respective powers to change the ways that management and employees interact in the workplace.

Myth #6: Employers should not discuss unionization unless/until a union organizing campaign begins

Reality: The worst thing employers can do is to hide their heads in the sand about this issue. Many are afraid that if they bring up the subject of unions, employees will start talking about joining a union. I’ve got news for them: employees will talk about unions irrespective of what management does or does not say. Ignoring the issue does not make it go away; what it does is cause employers to give up their important responsibility of educating their employees about their (workers’) rights and about management’s perspective. Importantly, employers that are subjected to employer neutrality clauses are prohibited from saying anything to their workers once a union organizing campaign begins, so if they have said nothing until then, they lose their right to do so going forward. As a result, employees will not be fully informed about the choice they must make.

The bottom line for labor relations can be assessed by answers to two questions:

    1. How high a priority are employees in your organization?
    2. Do your employees agree with your assessment?

If the answers are not “very high” and “yes,” then you have work to do.

© 2011 Pat Lynch. All rights reserved.

  • Print this article!
  • Digg
  • Sphinn
  • del.icio.us
  • Facebook
  • Google Bookmarks

The Euphemism Called “Proportional Sharing”

March 31st, 2011

A euphemism is a vague word or phrase that is substituted for an expression that is considered to be harsh, offensive, or blunt. For example, some public sector leaders use the phrase “proportional sharing” as a substitute for describing what they really do when they decide to cut every department or agency’s budget by the same flat percentage. I suppose that “proportional sharing” is meant to evoke an aura of fairness about the decisions that leaders make about allocating scarce resources – perhaps a sense of “we’re all feeling the pain equally.” While such a process may sound fair, in fact it is not. The reality behind “proportional sharing” is that officials are failing to live up to their responsibility for setting priorities and allocating public resources effectively. To learn why this is the case, and what can be done about it, read my article Why “Proportional Sharing” is an Ineffective Resource Allocation Strategy, posted as a guest column on Alan Weiss’ Contrarian Consultant blog. And let me know what you think.

© 2011 Pat Lynch. All rights reserved.

  • Print this article!
  • Digg
  • Sphinn
  • del.icio.us
  • Facebook
  • Google Bookmarks

Why “Fixing the Problem” IS the Problem

March 20th, 2011

Dramatic increases in public sector pension liabilities at a time when state and local governments have seen their revenues shrink drastically have resulted in an explosive backlash against public sector unions and the workers they represent. At the very time that high levels of unemployment increasingly have forced those who have lost their jobs to seek government services, they are being told that those services are being cut because of huge payments required to fund the pensions of public sector employees. This news has turned a spotlight on public sector pensions and served to demonize public sector employees.

Some states are taking advantage of this backlash to curtail or dismantle completely public sector workers’ collective bargaining processes. While discussing public sector pension reform efforts, the executive director of the California Labor Federation recently was quoted as accusing partisan lawmakers across the country of undertaking a “…strategy that goes beyond simply fixing the problems as we know them.” Presumably he wants them to stick to the pension funding issues and leave everything else alone – i.e., maintain the status quo.

Aspiring to the status quo is a big mistake. Simply “fixing” public pension systems is like treating the symptoms of a recurring illness and ignoring the underlying cause. While the symptoms may go away in the short-term, they will recur – often at a much more severe level. The cause itself must be addressed and a workable, long-term resolution achieved. There is overwhelming evidence that the status quo is not working any more. It’s time to stop merely “fixing” the problem and begin working toward eradicating its source.

Unfunded or under-funded pension liabilities in the millions and billions of dollars are grabbing headlines because they drastically reduce the amount of money available for state and local government services. As serious an issue as this is, in fact it is a symptom of a larger and more complex problem, namely the process by which public sector employees are compensated. That process is dysfunctional, which means that a continuation of the status quo is not sustainable.

There are many aspects of public sector compensation systems to consider, including what form the compensation takes (e.g., current vs. deferred salary, types and levels of benefits) and how pay is determined and changed. In unionized workplaces, these issues are addressed through a negotiation process. Bargaining often is conducted between elected officials and labor unions whose leaders provide substantial support in the form of money and campaign workers to labor-friendly candidates during elections. It seemed easy for lawmakers to agree to generous pensions and other terms of employment whose results wouldn’t be felt for years, or even decades – long after the elected officials had retired or (more likely in these days of term limits) moved on. How can that dynamic not influence the provisions of the resulting contracts? Who is looking out for the public in this process?

Providing short-term “solutions” to long-term problems has done a disservice to the public and to the workers who agreed to the employment conditions they were offered. Let’s not forget, however, that there are at least two parties to every contract, and that both must agree to its terms. Public sector unions did not impose their terms on elected officials; both sides were parties to the negotiated agreements. Unfortunately the public has been woefully uninformed about these issues. Yet whose fault is that? How many members of the public have taken the initiative to seek out that information?

In short, there is plenty of blame to go around. But playing the blame game is counterproductive because it doesn’t change anything. “Fixing” the problem with an eye on maintaining the status quo is not a viable option because it doesn’t address the underlying dysfunction. Instead, the focus must be on (a) what government services we as a society are willing to pay for, (b) compensating public sector employees fairly, (c) creating transparency and accountability in budget processes, and (d) implementing a plan that will enable us to achieve those objectives.

It’s time to stop “fixing” the problem by applying short-term “solutions” to long-term issues. We need to go well beyond the status quo, which is not functional or sustainable, to create a process that serves employees and the public well. What are we waiting for?

© 2011 Pat Lynch. All rights reserved.

  • Print this article!
  • Digg
  • Sphinn
  • del.icio.us
  • Facebook
  • Google Bookmarks

Consequences of the “It’s Just My Job” Syndrome

February 28th, 2011

Are you one of those people who, when others thank you or pay you a compliment about your performance, reply, “It’s just my job?” Have you ever been on the receiving end of that assertion when you thanked someone who has helped you? Those who deflect people’s praise or acknowledgment short-change themselves as well as others.

Just as organizations cannot optimize their business results unless their employees are fully successful, individuals cannot optimize their lives unless they acknowledge and “own” their talents and the value they generate. After all, if you don’t believe you provide great value to others, why should anyone else believe it? I know a very conscientious handyman who does exceptional work yet consistently undercharges customers for both labor and materials. Why? He is afraid that people will not hire him because they think he charges too much. In fact, his rates are very low, and I know people who would love to hire someone with his talent and expertise at two or even three times his current rate.

What’s going on here? This individual, like too many others, does not acknowledge the value he provides. Unless he makes the first “sale” to himself – i.e., sees and honors the talents he uses to help others – he cannot communicate that value to potential customers. Similarly, those who brush off the admiration and thanks of people who experience their value essentially are denigrating their own talent and disrespecting those who benefit from it.

Public safety employees are notorious practitioners of the “It’s just my job” syndrome. Brushing off the public’s thanks for years now is having an unintended negative consequence: over time, people mistakenly have come to accept the assertion that performing law enforcement and fire service jobs really IS no big deal. As a result, during this time of exceptionally scarce resources, public safety agencies’ budgets are undergoing unprecedented cutbacks.

I’m not suggesting that close scrutiny of these agencies’ budgets is unwarranted or inappropriate. What I am saying is that after years of downplaying their value, public safety employees have their work cut out for them in terms of re-educating the public, and specifically those who allocate resources, about the complexity of their jobs, of the risks involved, and of the resources required to sustain the desired level of readiness.

The moral of this story: acknowledge the value you provide to others, and accept their gratitude. After all, if you downplay that value, how can others possibly appreciate it?

© 2011 Pat Lynch. All rights reserved.

  • Print this article!
  • Digg
  • Sphinn
  • del.icio.us
  • Facebook
  • Google Bookmarks

Process and Outcomes: What’s REALLY Going on in Wisconsin

February 28th, 2011

There are two separate issues in the Wisconsin battle over public sector unionization: (1) the collective bargaining process, and (2) the outcomes of that process.

The outcomes of the collective bargaining process that are under discussion are the wages and benefits of public sector employees. The unions involved understand that economic conditions require painful cuts in pay and benefits. In fact, they agree that the status quo in unsustainable, and they have expressed their willingness to discuss the details. Their offer to negotiate those changes has been refused by Governor Walker.

Over the last few weeks people have cited numerous studies that either affirm or deny the statement that public sector employees are paid more (including benefits) than their counterparts in the private sector. Those on both sides cite statistics that seem to support their respective positions. Yet that public-private pay differential is not the issue here. The real issue is whether public sector employees in Wisconsin will continue to have a voice in discussions about their pay and benefits.

The process of collective bargaining requires the parties to discuss issues related to pay, hours, and terms and conditions of employment. It does NOT require the parties to agree on terms; it merely requires good faith discussion.

Although private sector regulations related to unionization are federal laws, public sector regulations are governed by state laws, which as you may expect, vary considerably. Wisconsin was the first state to agree to allow public sector employees to bargain collectively, so it is more than a little ironic that it is the first state to try to revoke those rights. Its law governing public sector unionization follows closely the findings of its federal counterpart, the National Labor Relations Act. Here is what the Wisconsin law currently says:

“It is the policy of this state, in order to preserve and promote the interests of the public, the employee and the employer alike, to encourage the practices and procedures of collective bargaining in state employment subject to the requirements of the public service and related laws, rules and policies governing state employment, by establishing standards of fair conduct in state employment relations and by providing a convenient, expeditious and impartial tribunal in which these interests may have their respective rights determined.”

In the name of reducing the state’s deficit, Governor Walker clearly is going beyond addressing the outcomes of previous negotiations (i.e., current pay and benefit levels); instead, he is intent upon abolishing the process of collective bargaining for public sector employees in Wisconsin. In short, the battle that has drawn demonstrators from across the country is not about whether the workers’ pay and benefits will change; it’s about whether those employees have a right to be part of the conversation that determines how their pay and benefits will change.

© 2011 Pat Lynch. All rights reserved.

  • Print this article!
  • Digg
  • Sphinn
  • del.icio.us
  • Facebook
  • Google Bookmarks

Wanted: Courageous Leaders

February 19th, 2011

Organizations across the U.S., especially those in the public (government) sector, are struggling to overcome the obstacles and identify the opportunities presented in the aftermath of slashed budgets, plummeting revenues, and forced layoffs and furloughs. The challenge is to prioritize scarce resources so they can be allocated as effectively as possible to achieve the desired outcomes.

There are two critical success factors required to enable decision-makers to devise an effective process for allocating their organizations’ scarce resources in ways that will allow them to re-group successfully: (1) a clearly articulated “big picture” – i.e., an overall mission statement or vision – and (2) courageous leaders. Organizations that have not identified their big picture can be successful if they address that shortcoming, which can be done relatively easily; those that lack courageous leaders, however, are unlikely to be able to rise to the challenges that face them.

Courageous leaders are principled individuals who focus relentlessly on achieving the organization’s big picture, even if doing so results in their paying a personal price. For example, in an ideal world, politicians at all levels of government would do what they were elected to do – i.e., make the tough decisions that are in the best interests of their city, county, state, or country (e.g., a city council member would vote for the interests of the city rather than of his/her district or, more narrowly, a sub-group of that district). In reality, however, they inevitably find themselves in the position of having to choose between the greater good, and a more narrow set of interests, either their own (e.g., re-election) or others’ (e.g., a sub-set of the population). Courageous leaders are those who consistently choose the greater good, even when their actions and decisions may result in their paying a heavy personal price.

Being a courageous leader is difficult. The reality of a world of scarce resources is that decision-makers must be able to prioritize them in a transparent, fair, relatively objective way that serves the greater good. In the U.S., people often want to have their proverbial cake and eat it too – e.g., they want their leaders to maintain or improve levels of services or benefits without raising taxes or cutting pay. Thus decision-makers often must buck the tide of public opinion, which may include people who elected, appointed, or hired them to do that job in the first place. Especially for public officials, it also may mean having to resist peer pressure from their colleagues.

Courageous leaders are able to see the big picture and, importantly, what must be done to achieve it. They must address a multitude of diverse positions on complex issues. The public sector, for example, must serve people who have a myriad of conflicting interests and who all expect and need to be heard and served. Leaders in that sector are responsible for seeing to the needs of those who have nowhere else to turn, even when those needs consume resources for which other stakeholders believe there are more pressing uses.

In short, the role of courageous leader is one that is fraught with peril, as demonstrated by those who have been pushed aside for having stood their ground in focusing on the big picture. The greater danger, however, is the absence of courageous leadership in our organizations and our society.

© 2011 Pat Lynch. All rights reserved.

  • Print this article!
  • Digg
  • Sphinn
  • del.icio.us
  • Facebook
  • Google Bookmarks