This Podcast Will Help You Flourish At Work

Each week, I grill thought-leaders and results-getters to discover specific, actionable insights that boost work performance.

553: How to Change Minds and Organizations with Jonah Berger

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Wharton professor Jonah Berger discusses the biggest obstacles to successful persuasion—and how to overcome them.

You’ll Learn:

  1. Why persuasive arguments don’t work—and what does
  2. A simple technique to win over stubborn naysayers
  3. How to introduce big changes with minimal resistance

About Jonah:

Jonah Berger is a marketing professor at the Wharton School at the University of Pennsylvania and internationally bestselling author of Contagious, Invisible Influence, and The Catalyst.

Dr. Berger is a world-renowned expert on change, word of mouth, influence, consumer behavior, and how products, ideas, and behaviors catch on. He has published over 50 articles in top‐tier academic journals, teaches Wharton’s highest rated online course, and popular outlets like The New York Times and Harvard Business Review often cover his work. He’s keynoted hundred of events, and often consults for organizations like Google, Apple, Nike, and the Gates Foundation.

Resources mentioned in the show:

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Jonah Berger Interview Transcript

Pete Mockaitis
Jonah, thanks for joining us here on the How to be Awesome at Your Job podcast.

Jonah Berger
Thanks so much for having me.

Pete Mockaitis
Well, I’m really excited to dig into your wisdom. You’ve been on the list for a long time so it’s so good to have you here.

Jonah Berger
Oh, thanks. I appreciate that.

Pete Mockaitis
I’d love to just kick us off by so you’ve been doing a lot of research in influence and change. Can you maybe tell us what’s some of like the most common things that people want change that comes up again and again, it’s almost like trite for you by now?

Jonah Berger
I think everyone has something they want to change. Employees always seem to want to change their boss’ mind, leaders want to transform organizations, marketing and sales want to change the customer or the clients’ mind, startups want to change industries, nonprofits want to change the world. I think we all have something that we want to change. People talk about changing their spouse’s mind or their kids’ behavior, so I think these things come up again and again.

What I found most interesting is that we tend to take a particular approach that often doesn’t work. So, when we did some of our own research, for example, we asked people to write down, “What’s something you want to change? And what have you tried to do to change it?” Almost 100% of the time, 99% of the time, they write down some version of what I call pushing, and that is kind of adding more pressure, more reasons, more information.

If it’s the boss, “Oh, let me just send one more email.” If it’s the client, “Let me make one more phone call.” If it’s my spouse, “Let me just tell them one more time why I think what I’m suggesting is the right way to go.” And it’s clear why we think this is a good approach, right? In the physical world, if we want to move something, we push it, right? If you’re sitting in a room and there’s a chair, and you want the chair to go somewhere, you push the chair in the direction you want it to go.

But the problem with people is they aren’t physical objects. Unlike objects that move when we push them, when we push people, they push back. And so, the question, really, of this new book that I’ve been working on is, “Well, is there a different way? Is there a better way to change minds and organizations?”

Pete Mockaitis
Well, do tell, what is the better way?

Jonah Berger
Yeah, so I think there’s a need analogy to be made with chemistry. And so, in chemistry there’s sort of this special set of substances that make change happen faster and easier, they’re called catalysts, but they work in a very particular way. They don’t add temperature, they don’t add pressure, which is usually what things in chemistry do to change things, they remove the barriers to change. They basically make the same amount of change happen with less work.

And so, that’s really what I find quite interesting about the social world as well. Too often, we say, “What could I do to get someone to change?” rather than taking a very subtle but important shift, and saying, “Why hasn’t that person changed already? What’s preventing them? What are the barriers that are mitigating or hindering change,” that friction as you said, “and how can I remove those barriers?” And so, that’s what the book is really all about. It’s about finding those barriers, those things that are getting in the way and how to get rid of them.

Pete Mockaitis
Okay. Certainly. And so then, let’s hear in terms of frequent examples of resistance, friction, barriers, obstacles. What’s the kind of stuff that gets in the way for professionals looking to make a change at work, either in themselves, or with their boss, or colleague? What are some of those repeated obstacles?

Jonah Berger
Yeah. And I love to think about these obstacles as parking brakes. The reason why, when we get in our car, we often have this problem. We get in our car, we’re sitting on an incline, or whatever, we want to get it to go, we turn the key ignition, put our foot on the gas. If it doesn’t go, we think we need more gas. We, rarely though, until we think about it, end up checking that parking brake. So, sometimes it’s the parking brake that’s along the way. So, what are those parking brakes or obstacles?

And so, in the book I talk about five. I talk about reactance, endowment, distance, uncertainty, and corroborating evidence. Those, I found across my research, are some of the five most common benefits and they have the nice side benefit of when you put them in order, they actually spell a word, which is REDUCE.

Pete Mockaitis
It was no accident, Jonah, I’m sure.

Jonah Berger
Yeah, it was no accident. And, honestly, actually, if I could I’d change the order around. I’d end up with like the EURDC framework which doesn’t spell anything. So, it would just be confusing if we did it that way but I think it’s a nice way to organize that information, and that’s what catalysts do, right? They don’t push harder; they reduce those barriers. They figure out what those obstacles are and how to mitigate them.

Pete Mockaitis
Well, so let’s dig into each of them. Can you maybe define the five of them and then we’ll sort of dig into each one?

Jonah Berger
Yeah, let’s pick one to start. So, let’s say reactance, and I think this is something that everyone listening has experienced in one way, shape or form, whether it’s in their professional or personal life. And the idea here, very simply, is when we try to get people to do something, when we try to persuade, they push back.

A bunch of very nice research shows that people essentially have an ingrained anti-persuasion system, almost like an anti-missile defense system, or radar, that is going around, that says, “Hey, when I sense that someone is trying to convince me of something, someone’s trying to change my mind, my defense system goes up.”

Pete Mockaitis
Even if it’s for our good or it would be fun.

Jonah Berger
You’re exactly right, yeah. And I find this most funny with exactly what you said. Even if it’s something I already want to do, this happens a lot in our personal lives, right? Our spouse, for example, might say, “Well, I think we should do this,” and even if it’s something we already wanted to do, we have to stop ourselves from saying no because we want to feel like we made the choice.

And that’s exactly what reactance is about. We want to feel like we’re in control, we’re in the driver seat, and so if we don’t feel like we’re in control, or we don’t feel like we’re in the driver seat, we push back against that message. That radar goes up and we either avoid, or ignore something, or, even worse, we counterargue. And I think counterarguing is the worst because you don’t know when someone is counterarguing. Often, they’re sitting there, they’re listening to you but they’re not actually listening. They’re sitting there thinking about all the reasons why they don’t want to do what you suggested.

And so, in terms of how to solve this challenge, there are a few different ways but one I often like to talk about is to do something called providing a menu. And the notion, the intuition here is very simple. When we give people one thing that we’re recommending, they, as we just talked about, often sit there thinking about all the reasons why it’s a bad idea. So, if our spouse, for example, says, “Hey, why do you want to do this weekend?” And you say, “Oh, let’s go watch a movie.” They go, “Oh, but it’s such a nice day outside,” or, “Oh, we went to the movies last week,” or, “Oh,” whatever it is. They think about all the reasons why it’s a bad idea.

And so, what good consultants often do is they provide what’s called a menu, essentially multiple options rather than just one. And what that really cleverly does is that shifts the job of the listener. Let’s say a consultant is presenting a solution and they’re presenting it to a client. If they just present one option, the client sits there going, thinking about all the reasons why it won’t work, “It’ll be too expensive.” “It’ll be hard to implement.” “My staff won’t like it, blah, blah, blah, blah.” All the reasons why it won’t work.

If, instead, you present two options, at least two or three, maybe even a couple more, it shifts the role of the listener, because rather than thinking about all the reasons they don’t like what you’re suggesting, they’re instead sitting there thinking which of them they like the best. Which of these two options do they like the best? Which is going to lead them, not surprisingly, to be much more likely to pick one at the end of the day.

And so, I like calling it providing a menu because you’re not giving infinite choices, you’re giving a limited set, and you’re guiding that decision.

Pete Mockaitis
And it’s so funny because it takes so much work to go off the menu. I’m thinking, this is triggering all sorts of things. So, I’ve got a two-year old at home, and so sometimes he doesn’t want to put a shirt on after he wakes up, and so I was like, “Hey, do you want the blue one or the purple one.” And he says, “Purple.” Or I was at a hotel with a continental breakfast this weekend, and I just wasn’t thrilled with the options. So, I was hoping for those little egg things but they weren’t there. There’s about all carbs, no protein, but I had like six options. And so, I just sort of stood there displeased for like three minutes. The people are probably wondering what I was doing, I was like, “No, no, no,” and then I finally just said, “Okay, I guess I want to do this because I don’t want to truck it out in this snowy weather. I’ll eat what’s here.”

Jonah Berger
Yeah, but talking about kids, I mean, it’s the same idea. I have a young one at home myself and it’s the same thing. When you ask kids to do something, they go, “No.” “Put this away.” “No.” “Do you want to wear this?” “No.” They’re like so used to saying no, but if you give them two options, suddenly they got a chance to choose. And notice you’re not giving them 15 options. If you gave them 15 options, they wouldn’t make a choice. They’d feel overwhelmed, they’d go something else.

When you walk into a restaurant, so you go to a Chinese restaurant, they don’t say, “Okay, which of the 60 options of world cuisines would you like?” They say, no, “Here’s the small set of options that are available but you get to pick.” And I think that same thing is used for whether you’re trying to convince a client or whether you’re trying to convince a boss. If you want that boss to do something, don’t say, “Hey, boss, I think we should do this.” Say, “Hey, boss, I think these are two really great options for us. Which do you like better?” Now, the boss may not pick either, but because they felt like they’re in control, they’re more likely to pick one than they would’ve been otherwise.

Pete Mockaitis
And I think that’s particularly excellent when it’s sort of like the “Help me prioritize” conversation. Like, “You’ve made 40 requests of me and it’s, in fact, impossible for all of those things to happen within the timeline you’d like them to happen. So, what do you think of, on this list, is the most important?” And so, that goes across, I think, a lot better while on the receiving end of this than, “No, not going to do that,” or, “I can’t do that.” It’s like, “Well, what?” It’s like, “No, no, you pick which of these things?”

Jonah Berger
You pick, yeah. But, as you’re pointing out, and that’s actually another thing I talk about a little bit in this chapter, is what that does is it gets the boss to commit to the conclusion. When you make statements, if someone gets a sit, they’re going, “Okay, do I agree with that statement or not?” When you ask questions, suddenly, again, it shifts their role. They’re saying what they think is the most important. They’re saying which of the things you should prioritize. They’ve put a stake in the ground. And so, if you come back later and you do that thing, it’s hard for them to disagree.

Somebody was talking about this in the context of a startup they were working at where the boss wanted everyone to work the weekend. No one wants to work the weekend, right? So, instead, in the meeting, the boss said, “Okay, what kind of company do you want to be? Do you want to be a good company or a great company?” Now, we all know how everyone answers that question, they don’t say, “Oh, we want to be a good company.” They say, “We want to be a great company.” And after everyone says that, they put that stake in the ground, they’ve committed to the conclusion. Then the boss says, “Okay. Well, to be a great company, we got to put in some long hours.” But because people have committed to it, because you asked them a question rather than telling them what to do, they’re much more likely to do the work to reach that conclusion.

Pete Mockaitis
Okay. Lovely. So, then that covers the reactance, I guess, we automatically react to, “I don’t care to be persuaded but I do care to make some choices.” So, then how about the endowment?

Jonah Berger
Sure, yeah. I think endowment, the best way to talk about endowment is to share the common intuition we often have, which is we tend to become attached to things we’re already doing. So, unlike if you’re trying to get someone who’s never done something to do something, when you’re trying to get people to switch to go from one thing to something else, they’re not only about how much they value that new thing and how much they want to do it, but how reticent they are to give up the old one.

So, some research on home buying, for example, shows that the longer someone’s lived in a home, the more they value that place above market price. They’ve spent a long time in it, they have their memories attached to it, they’re unwilling to get rid of it. Same thing if you’re asking people to buy something. So, they do great research, for example, on what’s called the endowment effect, where the name of the chapter comes from, where they asked people, “Hey, imagine I give you this mug.” They’re checking out this mug, it can hold coffee or tea, “You like it, great. How much would you be willing to sell it for?”

And they asked another set of people, they say, “Hey, here’s this wonderful mug, it holds coffee and tea, etc. How much would you be willing to buy it from someone else for?” And those prices, those amounts should be exactly the same whether you’re buying that coffee mug or selling that coffee mug, the value of it should be the same. But people’s valuation of it changes based on whether they own it or not. If it’s your mug, if it’s yours, you’re less willing to let it go. You have two times, often, will have higher valuation than people that don’t have it already because it’s yours. Obviously, this is a problem because you’re not only asking people when you ask them to change to do something new, you’re asking them to give up something old that they probably value very highly.

Pete Mockaitis
Oh, that’s good. This also reminds me of the cognitive bias, the IKEA effect in terms of, “I poured my time into assembling this piece of furniture therefore, if I were to sell it, it needs to fetch a hefty rate because I’m invested into that.” And to others, “No, it’s just kind of a cheap piece of furniture. You’re not going to get a hefty rate. It’s not world-class craftsmanship or anything.” Okay, so there we go. That’s endowment, it’s there. What do we do with it?

Jonah Berger
Yeah, and so I think the thing there, I found, is that we have to make people realize that doing nothing isn’t costless. So, I think we have this notion that, “What I’m doing already is free.” The cost of doing a new thing, the switching cost, which hopefully we’ll get to in a couple minutes, but we think the existing thing is, in some sense, free, “It’s not going to cost me anything to keep doing the same thing I’m doing.” But that often isn’t the case. There often are costs to doing something that we don’t realize.

So, there’s a nice study, for example, that talks about which hurts people more, which causes more pain, a minor injury or a major one. And everybody, when they think about it, will go, “Oh, of course, a major injury causes more pain.” So, if I break my elbow, it’s going to hurt me a lot more than a sprain. A headache is not going to hurt as much as a heart attack, for example. But what people don’t realize is when something really bad happens, we often take measures to fix that bad thing.

Something that’s terrible, when we break our arm, for example, we’re not just going to sit around. We’re going to go to the hospital, we’re going to get it set, we’re going to get it fixed. Whereas, for a minor sprain, we often don’t fix it. And so, we often don’t address those things and they end up causing more pain over the lifespan overall because they don’t go above our threshold.

And so, the challenge, that is for change agents, is make people realize it’s not costless, that doing what you’ve done before isn’t costless. There’s a great person from IT that I talk about, I talked to in the book, they did a version of what I call burning the ships. So, there’s this old famous story where an explorer wants to get his men to travel inland to do this dangerous thing in Mexico, they don’t want to go. So, what he does, he takes the old option off the table. He basically says, “Look, if the ships are still around, they can still go home so I’m going to burn the ships. Once the ships are gone, once the status quo has disappeared, they’ve got to go with me. They’ve got to change and do the new thing.”

And so, that may seem really drastic, burning the ships, but this IT guy did a version of it. He was trying to get everyone to upgrade, so upgrade to a new software version.

Pete Mockaitis
Oh, you’ve got to. Those hackers are after you.

Jonah Berger
Oh, they do, right?

Pete Mockaitis
They’re after you.

Jonah Berger
Yeah, you’re still using Windows 7, or whatever it is, it’s dangerous for the network.

Pete Mockaitis
Can’t have that.

Jonah Berger
Or someone’s on that old version of their PC they don’t want to get rid of because they’ve got that status quo bias, it’s theirs. And so, what he did was interesting. So, rather than saying, “Hey, let me tell you how great the new thing is,” he surfaced the costs of inaction. He made people realize more that doing nothing isn’t free. He sent out this note to people who weren’t upgrading to a new system, so he sent out this note, he said, “Look, you don’t have to upgrade. But just so you know, we can’t support the old system anymore. It’s dangerous to the network. It takes too much time. You can keep using it but, after a certain point, if you have a problem, we’re not going to fix it.”

He didn’t say, “Hey, look, you have to switch,” but he didn’t allow that costs of inaction to remain dormant. He really surfaced it. He allowed people to see it. And so, in some sense, he didn’t take the old option off the table, he didn’t throw their PC out the window, he didn’t truly burn the ships. He just made people realize that sticking with those old way of doing things might be more costly than they might think, which encouraged them to be more willing to do something new.

Pete Mockaitis
You know, I really dig that, and I’ve recently applied that in terms of there’s all these little tasks that, you know, I’m big on outsourcing and I think I’ve gotten pretty good at it. But there are some like three-minute tasks that’s just like, “Ahh, it’s probably a lot of effort to train folks on how to do that so I’ll just keep doing that.” But then when I really hunker down, it’s like, “Okay, so what is this going to amount to over the next five years of doing these three minutes?” And I think about all those hours, and it’s like, “Okay, well, that’s a few vacation days, so maybe it’s worth taking an hour to share, ‘Hey, this is how you make invoices,’” or whatever the thing may be so that I can get that going, as you show that the cost of doing nothing is significant.

Jonah Berger
Yeah. And I love that example that you shared because the cost is significant over time but it’s not initially. Like, you’re sitting there, going, “But it’s only three minutes.” But, as you said, three minutes over time adds up to vacation days. But there’s always an initial cost of action. To train that person requires a couple hours, and if the cost seems bigger than the immediate benefit, we don’t do it. And so, really encouraging people to say, “Look, over time, that sprain, that elbow sprain is going to hurt a lot. You might want to go see a doctor and get it fixed.” Really adding it up over time forces people to realize that it’s not actually costless.

Pete Mockaitis
I dig it. Well, let’s keep it going. Tell us about distance. Tell us about distance, Jonah.

Jonah Berger
Sure. So, distance is the notion that if we ask for too much, if we ask for something or even give people information, it’s too far from where they are at the moment, they tend to ignore us or they tend to sort of push back against what we’re suggesting. And so, this might sound a little bit like reactance, but in reactance we’re really trying to persuade someone, even if we just give people information, sometimes they don’t listen.

And so, a great domain to think about this is politics.

Jonah Berger
It’s the new reality show, it’s called America – What’s Happening in Politics. But people don’t get along with the other side, and many people have talked about filter bubbles, and you get access to biased information, and all these different things. But one solution is, “Hey, if we just learned about the other side, if we just connected with people on the other side, then we’d be more moderate, we’d come around.”

And so, sociologists from Duke actually tested this, they said, “Look, I’m going to take people on Twitter, I’m going to pay them a little bit of money to follow a bot for a month, and that bot is going to be on the opposite side of the political spectrum as them.” It’s exactly what all the commentators and pundits have said, “Look, if we just reach across the aisle, just talk to a couple Republicans, if you’re a Democrat, vice versa if you’re a Republican, that’ll make everybody more moderate.” They said, “Look, if we just give people information, we’re not trying to convince anyone, just give them information about what the other side thinks, hopefully, that’ll make them more moderate.”

And you can think about this in a variety of other contexts as well, right? If I just give that boss more information about what I want, if I give the client more information, they should listen. And the hope was simply that information about the other side would move people to the middle but that’s not, unfortunately, what he found. It wasn’t that it moved people to the middle, and it wasn’t even that it had no effect. Giving people information about what the other side thought actually pushed them in the opposite direction. It backfired.

Pete Mockaitis
It’s like, “Those jerks,” villainized them more for how wrong they are.

Jonah Berger
In some sense, right, they made Republicans become more conservative, and the Liberals move in the opposite direction as well. And, essentially, why? It was too far from where people are at the moment. Research shows that we have a sort of a latitude acceptance or zone of acceptance around our beliefs or our attitudes. Sure, we believe a certain thing, but we’re willing to move a few yards in another direction.

Think about a football field, right, we move five or ten yards in one direction, maybe five or ten in another, but we won’t go completely on the other side of the field because on the other side of the field is that region of rejection. It’s that set of opinions, or information, or beliefs that we are unwilling even to consider. We’re unwilling to pay attention to them, and this is sort of ideas of the confirmation bias. And even when we do pay attention to them, we discount it or we don’t believe it because it’s too far from where we are.

And so, the question really is, “How can we shrink that distance, make it not seem so far away from where people are at the moment?”

Pete Mockaitis
Well, okay, so let’s get an example here. Boy, what’s something that people can really…hey, how about abortion, right? There is some distance. So, one side could say, “Hey, this is a human life and you’re murdering it or him or her, that’s not cool.” And the other side would say, “No, you’re enslaving women. You’re trying to bring them back to the dark ages in which they’re subservient to men. This is unjust.” Okay, so we got a whole lot of distance. I’m throwing you in the deep end, Jonah.

Jonah Berger
You are.

Pete Mockaitis
If one side or the other is trying to gain some ground, how might we present things to have less distance?

Jonah Berger
Yeah, so I’m going to cheat here. I’m going to take an easy out at the beginning and then we’ll work our way back around abortion.

Pete Mockaitis
Oh, sure.

Jonah Berger
So, I would say a first place to start is to do what I call asking for less. And so, I think an easy way to think about this is a doctor that I was talking to. So, often, when we want people to change, we ask for too much. The information is too far away. In the abortion case, for example, we want someone to go from pro-choice to pro-life right away. We want people to switch sides, one to the other right away. We want big change to happen right away.

And the doctor was actually dealing with something similar. She had this truck driver she was working with that was morbidly obese, so he was like 100 pounds or more overweight, part of the reason why, he was drinking three liters of Mountain Dew a day.

Pete Mockaitis
Oh, man.

Jonah Berger
He was drinking in that truck hub all day long. He’d buy Mountain Dew.

Pete Mockaitis
Got to stay awake.

Jonah Berger
Yeah, got to stay awake, got to have something to drink, so he was drinking three liters of Mountain Dew. And so, what’s our knee-jerk reaction in that situation?

Pete Mockaitis
“That’s disgusting. You have to stop that now.”

Jonah Berger
Yeah, “Don’t drink anymore Mountain Dew,” right? If we want someone to exercise, “You exercise every day.” We want someone to switch from one side of the field to the other, which is great for us but it’s probably not going to work for them. If you’re talking to a guy that’s drinking three liters of Mountain Dew a day, telling him to quit cold turkey is probably going to fail.

And so, she tried something else instead. Rather than asking him to quit cold turkey, she said, “Hey, you’re drinking three liters of Mountain Dew a day. You can keep drinking some Mountain Dew, but drink two instead of three, and take one of those empty bottles and fill it up with water.” He grumbled, he didn’t want to do it obviously, he wasn’t interested in moving at all, but he was willing to try. He lost a little weight. He came back next time. She said, “Okay, great. Now you’re at two, move to one.” Came back a few months later, had made it to one, then she said, “Great.” Eventually moved to zero.

And by using this sort of step-wise function, not asking for all at once, but asking for less and then asking for more, she was able to get him to change. And so, asking for less isn’t about saying, “Hey, I’m only going to ask for less,” it’s about starting with less and then asking for more. Moving people five yards down the field, and then moving them another five yards.

If you talk to product designers, they often call this something like stepping stones. If you’re introducing a new version of a product or a new version of a service, I, a few years ago, was working with Facebook to introduce a new hardware project, and they were dealing with exactly this. They’re saying, “Okay, we’re going to introduce something. It’s very different from what people are used to. How can we introduce this new thing? If it’s too different, they’re going to say no, they don’t want to do it.”

And so, what we ended up doing instead is rather than going for the full thing right away, asking people to move to a completely new thing, let’s pick something that’s just a little bit from where they are currently, introduce that version. Then, once people have gotten used to it, move to the next version, and move to the next one. And so, in some sense, it’s almost like called stepping stones because it’s like a river. When you ask someone to change, it’s like a big river, they don’t want to cross from one side to the other, “It’s to far. I’m going to get wet. I don’t want to do it.”

So, instead, you say, “Okay, well, just jump to this little stone, and then jump to this next stone, then jump to this next stone. And you jump a few times and you’re across to the other side.” And so, rather than asking for too much right away, start by asking for less, chunk that change and then ask for more.

Pete Mockaitis
Well, that’s handy. And so then, in the challenging example I threw your way with abortion, it might be just a matter of a stepping stone might be not so much changing your view but just accepting that the other side is not evil and trying to commit these atrocities against women or tiny babies, but rather that they are mistaken or they have a different perspective, and that’s some distance that you’ve reduced. You’re still quite a distance away but it’s something.

Jonah Berger
Yeah. There’s a great Heineken ad that does something exactly like what you’re suggesting where they take the people that completely disagree and they have them have a conversation. So, they take, for example, a feminist and someone who hates feminism. They take someone who hates transgender people and someone who is a transgender, and so on, people that really disagree. And what they do is they have them essentially build a bar. They get together, they go through a variety of activities, they build a bar, and at the end, they showed them a video of the other person, and the other person saying all the things that they believe.

So, the feminist says, “Oh, women are important,” and the feminist hater says, “Oh, women’s job is at the home,” and they see what the other person is, and then they say, “Okay, now that you know who this person is, do you still want to be friends with them?” And I think what that does, it’s slightly different than asking for less. What it does is it switches the field. Rather than starting with something like abortion where two sides are dug in on opposite sides of the field and they’re unlikely to agree and move, it switches the field to a dimension where they’re more similar in the first place.

Pete Mockaitis
We both like drinking beer.

Jonah Berger
We both like drinking beer, right? We both hang out. We both care about our families. We both care about America being a great country. Or in an organizational context, right? Sure, you might not want to do what I want but we both want the company to succeed. I think a good way to think about it, imagine you’re sitting in front of graph paper. You can draw that field on the X-axis, there’s one end zone, there’s another end zone, you can make the tick marks along the way. But at the 50-yard line, you draw a vertical line, there’s a Y-axis which is another dimension where you might actually have a lot in common, that even if you’re on different ends of the X-axis, you’re actually at the same point on the Y-axis, you’re exactly in the middle.

And so, by switching that field by starting with common ground, starting with something we have in common, a place where we don’t disagree, and using that to then eventually build around to that place where there’s more disagreement, we’re going to be more successful because now you humanized the person. You’re not just, “Oh, this faceless person who believes something I don’t believe. We have a little bit in common. We both care about our families. We realize we have emotional connections to the things we love. I’m going to see you more as a human. You’re going to see me more as a human. And then we’re more likely to be persuaded at the end of the day.”

Pete Mockaitis
Okay. Well, I’m digging it. So, Jonah, let’s just keep it going. Uncertainty, lay it on.

Jonah Berger
So, we talked a little bit about switching costs before, but just to make that really concrete, if I’m asking an organization to change company culture, there’s some costs to doing that. There’s an incentive structure that was, and now there’s a new one. When I ask a customer to buy a new project, they have to spend money or time or energy to install that new thing or get that new thing. And those are costs that often prevent change from happening. The old thing seems cheap, the new thing seems costly.

But the other problem with new things is that they have more uncertainty associated with them. Think about a new phone, for example. Not only do you have to pay more money to get that new phone. But when do you have to pay the cost and when do you get the benefit? The costs are up front, pay the money for that phone. Now, I have to go to AT&T and Verizon and switch my thing, and do this, and do that, and get all my information switched over. So, the costs are now and the benefits are later. Yes, it might be faster and lighter and have a better camera but I’m not going to get those until later, and those benefits are also uncertain.

Sure, this new way of doing company culture might be better, sure, this new project you’re suggesting might make us more money, but I don’t know if it’s going to. And if I don’t know, why am I going to be willing to switch? And that’s what I call the cost-benefit timing gap. Costs are certain and they’re upfront. Benefits are uncertain and they’re later, and people don’t like uncertainty. Think about the last time you were wondering if you’re going to be late for a meeting, for example. So, your flight is late or you’re stuck in a car in traffic, and you’re worried about missing this meeting. You’re so anxious you don’t know what you’re going to do. You feel terrible. You hate this concern about missing the meeting.

What’s interesting is the worst thing that can happen is missing the meeting. And so, if you know that you’re going to miss that meeting, you should feel what? You should feel worse because that’s the worst thing that can happen. But often, notice what happens, we figure out we’re going to miss that meeting, and then what ends up happening?

Pete Mockaitis
You’re relieved.

Jonah Berger
You actually feel good. Relief. You feel better.

Pete Mockaitis
It’s like, “Okay, what am I going to do now? I’ll communicate something to somebody and make it up somehow.”

Jonah Berger
Yeah, now that I know, I’m going to solve it. And so, in some sense, it’s not just missing the meeting that’s bad, it’s that uncertainly. And so, in a product context, in a sales context, in organizational context, uncertainty often leads us to hit the pause button. We don’t know whether the new thing is going to be better or worse. And given we don’t know, it’s safest to do nothing, which is great for the status quo, which is great for what we’re doing already, but it’s terrible for new things. And so, to really then get people to overcome that uncertainty, that anxiety, we have to make it easier for them to experience the value of that new thing.

Pete Mockaitis
I’m with you. And I think this connects so much in terms of I’m thinking about how people try to sell me something, and it’s just like, “All I really need to know is that it’s really going to do the thing that you say it’s going to do. And so, maybe you can alleviate that with a demo or…” usually I want hard data that they can never give me in terms of, “Oh, you have a marketing service. Well, can you tell me the cost per acquired customer for a population of people who are selling something very similar to what I’m selling?” Like, “No, we can’t.”

So, anyways, maybe I’m jumping the gun. I think, “Hey, demos, data,” but you tell me, what are the best ways to address and reduce uncertainty?

Jonah Berger
Yeah, demos and data are close. And so, I think I love to start with an idea that many of us may have heard of before, and that is the notion of freemium. So, take a company like Dropbox, which many of your listeners are probably familiar with, a storage place for files and so on. When Dropbox came out, they had a great technology, but the challenge is people were scared of it. They didn’t know whether it would be better than what they’d done already. They were used to doing things a particular way. “Where is that cloud? Where are my files going to be? If I’ve worked hours on this Word document, I don’t want to lose it.” And so, they were unwilling to make the change.

And so, Dropbox could’ve done advertising, they could’ve bought Google search words, but what they did instead is they gave it away for free. And you might be sitting there going, “What do you mean? Give it away for free?” Any kid who’s ever run a lemonade stand, to the most seasoned business executive, knows that giving away something for free is not a way to build a business, yet Dropbox has built a billion-dollar business giving away things for free. How did they do that?

And so, what they did is they didn’t give away everything for free. They gave away a version for free and then created a premium version and encouraged people to upgrade to it. So, in Dropbox’s case, for example, they gave away 2GB, or something like that, of storage for free. They said, “Look, sure there’s switching costs, you have your files on your computer, it’s going to take time and effort to upload them, but let’s at least try to mitigate that monetary costs by making the upfront costs free.” So, you can put files on Dropbox until you get to 2GB. Once you get to 2GB though, you’re faced with a choice, “Do I upgrade to premium version or not? Do I want more space, more features or not?”

And what’s really nice about something like freemium is rather than Dropbox telling you how great it is, just like that marketing service that you were talking to, of course they’re going to say it’s great. No marketing service is going to say, “Oh, yeah, you know, well, we’re not so great.” So, you can’t really believe them. But in Dropbox’s case, you have to believe because you’re the one who’s been using it. You’re the one that’s uploaded all your files to it. And so, when they come around and they say, “Hey, can you throw us a couple bucks to get more space,” you say, “Well, I know it’s good. I’ve resolved that uncertainty myself. I’ve convinced myself.”

And so, there are dozens, if not hundreds of other businesses that have leveraged this notion of freemium, creating a free version of a product or service, and then encouraging people to upgrade to the premium. If you think about Pandora, there’s an ad-free version. If you think about Skype, there’s a premium version. Think about LinkedIn, there’s a premium version. And so, what all these things have done is they’ve lowered that upfront costs to allow people to experience whether something is good or not, and then if they like it, they encourage you to upgrade to the premium. So, you have to figure out the right way to leverage freemium, I think that’s at least one idea to lower that barrier of trial and reduce uncertainty.

Pete Mockaitis
You know, that does make a lot of sense to me. And anyway, I guess, you can give people a taste of things, like whether you make a good sketch, or a model, or a prototype, or a 3D world so they can put on the headset and see, “Oh, that’s what you mean,” so that uncertainty diminishes as it becomes more real and a part of something that they’ve experienced.

Jonah Berger
Yeah. I mean, think about test drives, for example. So, I often talk about freemium with clients of mine, and I’ll talk to somebody who’s an online software as a service company, they say, “Great. Freemium. I got it. Let’s do it.” But then I’ll talk to somebody that sells offline goods. So, maybe they’re a fleet management company, or maybe they’re a doctor, or maybe they’re a hospital and they say, “Freemium is great, but if I’m selling a physical thing, I can’t do freemium.” The idea of freemium though is a lot larger than freemium. The idea is, just as you said, “How can I make it easier for people to experience the offering?”

So, think about something like test drives for cars. There’s a not a free in a freemium. You get to test drive a car. It doesn’t make the price of the car any cheaper. The amount of money that’s going to cost to buy that Acura is still the same. All the test drive does, it allows you to figure out whether the value of it is actually worth paying the money. It allows you to experience some sense of what it’s like even though it’s not freemium.

And so, what that chapter talks all about is, “How can we lower the upfront costs by using things like test drives, or freemium, or other ways? How can we lower the backend costs, making things reversible?” Free returns, in the case of online buying. Lawyers often say, “Hey, we only get paid if you win,” so, again, reducing that uncertainty that it’s going to work, or even things like drive and discovery where you bring the trial to people so they experience it themselves even if they don’t think they’re interested, bringing it to them and allowing them to see how good it is.

Pete Mockaitis
Yeah, that’s cool.

So, Jonah, if you could maybe give us an example that brings this all together, or maybe just even a few of the elements together in terms of there’s a professional, they’re looking to make a change, and they astutely utilized multiple levers in their appeal and made magic happen. Can you lay one on us?

Jonah Berger
There are many examples in the book that touch on individual aspects of this. I think, since we’re talking about uncertainty, I’ll just give one more about uncertainty specifically that I think is a fun one, and this is what I put under the sort of drive discovery bucket.

And that is sometimes people don’t know that they like what you’re offering. So, sometimes you’re trying to get them to do something but they don’t know you exist or they don’t think they like you, they’re going to be unwilling to change. So, if your boss, for example, has never heard of a certain thing, or you’re a challenger brand in the space, a client doesn’t know you exist, they’re going to be unlikely to change their mind, and so, I think this can be a great way to solve the problem.

There was this guy, his name was Jacek, he’s Polish, he works for Santander Bank, and, essentially, he wants to get his boss to buy into customer service or the customer experience. So, in the United States, we know all about surprise and delight. We have our best customers, we surprise them, we greet them by name. You check into our hotel; we give you your own pillow. You call customer service; we know it’s you. But it hasn’t been applied in banking as much and hadn’t made its way to Europe.

And so, Jacek would sit there going, “Look, this could be great in banking. Customers like us but they don’t love us. I’m sure we’re smiling at them when they walk in the door but we need to build that deeper connection. And so, he tells his boss, “Look, we got to do this,” and his boss says, “Ahh, no, thanks.” He says, “Look, boss, all these people are doing it.” And the boss says, “No, look, we’re banking. We’re not hotels, we’re not online retailers. People in banking care only about the rates.” So, Jacek brings a consultant, they make presentations after presentations, his boss still isn’t convinced.

So, he’s sitting there, going, “Okay, I can’t push my boss. If I tell my boss what to do, he’s not going to listen.” And so, he’s like, “Well, how can I help my boss experience the value of what I’m offering? How can I put him in the situation and the management team in the situation of what I’m trying to get them to do?” And so, he ends up doing slightly different. Rather than having another meeting where he talks about the value of customer experience, he instead collects a bunch of information from his boss and the management team. So, he finds out their birthday, their anniversary, how many days they’ve been with the company, when they’re going on trips, and so on.

And then what he does over the next couple months is he celebrates these things. So, if someone’s anniversary, he sends them a nice note. If it’s their two years of working with the company, they get a wonderful card signed by everyone saying how great it is that they’ve been with the organization. Someone goes hiking, somebody knits them a hat. Someone’s child gets in a car accident, they raise them money. And so, all these things are basically putting the management team in the shoes of what it’s like to be part of a customer experience initiative.

Then the next time they have a meeting, Jacek is sort of tentative to bring it up, but he says, “Hey, what do you guys think?” And nobody says, “Hey, I don’t think it’ll work,” because they’ve all experienced it. They all know what it’s like to be cared about as a customer because they’ve been sitting through it. And that’s an example of what I put under uncertainty of drive and discovery. Rather than forcing people to come to you and take that test drive, how can you bring the test drive to them? How can you put them in a situation of what you want them to do so they experience the value themselves and they can’t help but say yes because they’ve seen it for themselves and they’re the best ones to judge whether they’re going to like something or not?

Pete Mockaitis
Oh, I like that a lot. Thank you. So, I assume that they accepted his proposal after all of that.

Jonah Berger
Oh, yeah.

Pete Mockaitis
There you go.

Jonah Berger
You know, it’s funny they not only accepted his proposal, they’ve promoted him to be director of customer experience for a large number of banks, and it has lived on not only in that location but a number of others. He’s really helped bring that approach to a whole industry that hadn’t seen it before.

Pete Mockaitis
Oh, that’s awesome. Well, Jonah, tell me, anything else you want to make sure to mention before we shift gears and hear about some of your favorite things?

Jonah Berger
I think that’s it. We covered many of the barriers in the book. I think, to me, the main takeaway in the book is really start to notice those roadblocks, those obstacles, figure out how to mitigate them, and then those five are at least a place to start for some of them.

Pete Mockaitis
All right. Well, now could you share with us a favorite quote, something you find inspiring?

Jonah Berger
“Do what you love and love what you do.” And I found it quite motivating to remember both that you want to love what you’re doing, but also sometimes it takes a little bit of work, and you’ve got to be willing to put that work in to love whatever it is that you’re doing.

Pete Mockaitis
And could you share a favorite study or experiment or bit of research?

Jonah Berger
I’ll tell you an example of a recent favorite. They looked at the visual similarity between paintings to figure out how novel and how influential certain paintings are, and to figure out how correlated those are with the value of painting.

So, they do things like looking at what someone paints, what style they paint, and how similar or different it is from prior folks, to look at what drives value. And so, a lot of the research I’m doing at the moment is really natural language, or image processing, pulling behavioral insight from textual image-based data. And I thought this study was just amazing.

Pete Mockaitis
Huh. And so, they found something, I imagine, or otherwise it wouldn’t be…

Jonah Berger
They did, yeah. They’re looking at sort of how novelty or similarity is related to value. We actually did something similar in songs. We looked at how similar songs are to their genres, to how similar a given song is to other songs. In that genre, we found that songs that are more atypical that sing about things that are more differentiated from their genre are more successful. So, country songs, not surprisingly, sing a lot about girls and cars, but country songs that sing about different themes than usual end up being higher on the Billboard Charts.

Pete Mockaitis
And how about a favorite book?

Jonah Berger
Oh, it would be a copout to say The Catalyst which is my new one, so I’ll say a different favorite book, which is a book called A Matter of Taste. It’s all about baby names and how we can use baby names to understand culture. It’s an amazing, not only a fun read, but just an interesting lens on the world itself.

Pete Mockaitis
And how about a favorite tool, something you use to be awesome at your job?

Jonah Berger
I would just say research. It’s a broad Swiss Army knife of a tool. But I would say no particular technology, just research in general, being curious about the world and trying to quantify it.

Pete Mockaitis
And how about a favorite habit, something you do that helps you to be awesome at your job?

Jonah Berger
God, I think, scheduling is so important. You talked to this a little bit earlier about sort of outsourcing things. To me, it’s really about finding time for the big stuff, making sure that you know when something is a pebble and a boulder, not only doing the pebbles first because they’re easy, but making sure you make time for the big things, otherwise they’ll never get done.

Pete Mockaitis
And is there a particular nugget you share that really seems to connect and resonate with folks; they repeat it back to you often?

Jonah Berger
I can’t say that that’s true. I would hope that something from one of the books, whether it’s word of mouth, only 7% of it is online, or hopefully some day soon, one thing from the book The Catalyst.

Pete Mockaitis
And if folks want to learn more or get in touch, where would you point them?

Jonah Berger
So, a great place to find me online is my website, just JonahBerger.com. I’m also on LinkedIn and on Twitter @j1berger.

Pete Mockaitis
And do you have a final challenge or call to action for folks looking to be awesome at their jobs?

Jonah Berger
Yeah, I think if I’ve learned anything from this new book, it’s that we are almost oblivious to these barriers. We’re blind to these obstacles. And so, I think my challenge would be to figure out why something hasn’t changed. Whatever it is you want to change, whether it’s a person, whether it’s an organization, whatever it might be, start looking for those obstacles. Don’t be blind to the barriers. Start to see them. And if not, ask about them, and use that to drive change. If you don’t understand why change is happening or not, if you can’t find the root, it’s going to be really hard to change minds in action.

Pete Mockaitis
Well, Jonah, this has been lots of fun. I wish you a bunch of luck with The Catalyst and all your adventures.

Jonah Berger
Thanks so much.

552: The Foundational Principle that Separates Good Leaders from Bad Ones with Pat Lencioni

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Patrick Lencioni explores why so many leaders fall short–and how to resolve it.

You’ll Learn:

  1. The mentality that separates great leaders from the rest
  2. Why you shouldn’t be afraid of micromanaging
  3. How leaders can have more joyful difficult conversations

About Patrick:

Pat is the founder of The Table Group and the author of 11 books which have sold over 5 million copies and been translated into more than 30 languages. The Wall Street Journal called him “one of the most in demand speakers in America.” He has addressed millions of people at conferences and events around the world over the past 15 years. Pat has written for or been featured in numerous publications including Harvard Business ReviewInc.FortuneFast CompanyUSA TodayThe Wall Street Journal, and BusinessWeek.

As CEO, Pat spends his time writing books and articles related to leadership and organizational health, speaking to audiences interested in those topics and consulting to CEOs and their teams.

Prior to founding The Table Group, Pat worked at Bain & Company, Oracle Corporation and Sybase. Pat lives in the Bay Area with his wife and four boys.

Resources mentioned in the show:

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Patrick Lencioni Interview Transcript

Pete Mockaitis
Pat, thanks for joining us here on the How to be Awesome at Your Job podcast.

Patrick Lencioni
It’s great to be with you, Pete.

Pete Mockaitis
Well, I’ve been so excited to chat with you here, and I’ve read several of your books over many years, so I think we’re going to have a good one. I’d love to start by hearing, so you spent a lot of years working with leaders and teams. If there’s a particularly surprising, counterintuitive, fascinating discovery you’ve made across your career in terms of what makes teams successful or unsuccessful, what is that thing?

Patrick Lencioni
Wow, there’s a lot there.

Pete Mockaitis
Just breaking the ice.

Patrick Lencioni
I think the thing I would say is it’s messier than people realize, and the very best teams, the very best organizations, the very best marriages, the very best things in the world are far messier than people like to think they are, and that you have to kind of accept that and be good with that, and that’s what makes it interesting. It’s never neat and tidy and perfect. So, I would say that might be one of the meta things I’ve learned.

Pete Mockaitis
Yes. Well, and I think that kind of goes right into what I was going to ask about next. So, within that, what do you think is the core fundamental root of leaders when they fail to achieve organizational health? What’s behind that?

Patrick Lencioni
Well, there’s a lot of different things, but, as an individual, I would say a lack of humility and vulnerability is probably the single greatest thing. It really takes a leader to be vulnerable enough to admit what they’re not good at and what they don’t know, and humble enough to realize they’re not more important than the people they lead, and that it’s good to be vulnerable and transparent. And so many leaders, if they’re either insecure or self-protective, they really limit their ability to be successful and the organization’s as well. So, I would say it’s humility and vulnerability is at the core.

Pete Mockaitis
And so, yeah, that really tees up and something I’ve been so curious about. The humility, the vulnerability, when you open the book The Advantage, with a really great story in which, I can just visualize the scene, you’re sitting with the CEO and watching the different programs that their workers have initiated across the year.

Patrick Lencioni
This is about Southwest Airlines.

Pete Mockaitis
Okay. All right. So, it’s Southwest Airlines, there we go.

Patrick Lencioni
Yeah, yeah, yeah.

Pete Mockaitis
And so, you’re hearing some really cool story after really cool story, there’s clearly a lot of good organizational health and vibes going on there, and you asked the CEO, “Hey, so how come your competitors aren’t doing this?” And he says, “Honestly, I think they believe it’s beneath them.” And those words just really stuck with me. And so, what are some examples of things that people don’t do that they think maybe are beneath them that, really, we should start doing?

Patrick Lencioni
That’s a great question. In fact, my last book, my most recent book, which is just out now, is called The Motive. And what it talks about is if you’re not a humble leader, if you’re not doing it for service and for responsibility, but for yourself, you’re probably not going to do many of these things. And the things that leaders who are motivated by the wrong things, they don’t like to repeat themselves. That sounds crazy but the leader at Southwest Airlines, I’ve seen him over the course of almost 20 years in various settings, and he has no problem standing up and reiterating the same messages to his people again and again and again, because he realizes it’s not about looking cool and it’s not about entertaining him. It’s about helping his people stay on topic and reinforcing what matters.

And so, here is probably one of the most successful CEOs in the last 50 years, a guy who, by the way, if he walked into your office right now, you wouldn’t knew who he was, and you might not even know his name if I asked you right now, and yet he’s ran the most successful company in America over the last, you know, he’s been doing this for 25 years. It’s not about him, he constantly repeats himself. He is the CRO of Southwest Airlines, which I call the Chief Reminding Officer, and he’s good with that. So, that’s one of the things that people don’t do, and that’s not beneath him. It’s not beneath him to get up and constantly tell the stories and reinforce the messages in different ways.

One of the other things that’s not beneath him is to actually manage his people. It sounds crazy but a lot of CEOs are like, “You know, I’ve been doing this for a long time, I shouldn’t have to manage people anymore. So, I’m going to hire people, I’m going to trust them to do their jobs, and I’m going to just go focus on the stuff I want to do.” That’s not what a great leader does. A great leader realizes, “Whether I’m running a billion-dollar company and I’m a senior executive, or whether I’m running a startup and I have 12 people sitting around me, I have to manage my people. It might sound tedious but I have to do it.”

Another thing that great leaders have to do is run great meetings. So many leaders say, “I hate meetings,” and as a result, they just kind of mail it in, or they avoid them, or try to go to as few as possible. But a great leader has to make meetings great.

Pete Mockaitis
Well, so that’s a good list there. And I want to talk about the management bit for a moment. So, we had Bruce Tulgan on the show, back in episode 302, who discussed what he called the crisis of undermanagement.

Patrick Lencioni
I love it.

Pete Mockaitis
And I thought that was very resonant. We kind of covered some similar themes here. And you’ve got a quote, I think it’s from The Motive, when you say, “Hey, it’s not babysitting. It’s management and it’s your job.” Can you sort of dig into this, this misconception between babysitting, micromanagement, management sort of? Where is the line? What should be done? And what’s not being done enough?

Patrick Lencioni
Well, I want to connect with that guy. I’ve never heard of that. Did he say that, because I feel the same way of crisis of undermanagement? You know, we live in a world where I think people don’t like be held accountable. I think that’s a social phenomenon as well. And so, what they do is they throw out the idea of, “You’re micromanaging me.” And managers, that’s like, I don’t know, that’s like one of those unanswerable things that people go on.

Pete Mockaitis
“Oh, I’m sorry.”

Patrick Lencioni
And managers back off. And the problem is, no, we’re undermanaging people. And if micromanaging means, “I know what my people are working on, I know how they’re doing, I’m available to give them coaching. I’m checking in with them to see how they’re doing,” then let’s all micromanage more. And I think that we’ve come to that place where too many people get away with trying to justify not being held accountable by accusing people of being a micromanager. No good leader is afraid of that.

Pete Mockaitis
All right.

Patrick Lencioni
And so, I just, I agree completely with what Bruce said. And I think that it’s our job. And if we don’t really want to know what people are working on and coach them and be responsible for making sure they’re successful, then we don’t want to be a manager or a leader.

Pete Mockaitis
I hear you. And so then, so you laid out a couple of things. You understand what they’re working on, and the status of those things, and you are available to chime in and do some coaching as necessary. And so then, what is too much in terms of managing? What is true micromanagement look, sound, feel like?

Patrick Lencioni
You know, that’s a great question. And it’s one of those things like we promote conflict, and people say, “Well, what’s too much conflict?” And I would like to say, well, here’s the deal, 95% of people engage in too little conflict. So, rather than worrying about what’s too much, let’s realize that’s a high-class problem.

Now, I’ll answer the question though, but I would say that most managers undermanage. What’s too much? I suppose too much is asking somebody to give you a daily accounting of how they’re spending their time, and asking them to prove every day what they’ve accomplished, and questioning every decision they make, and not giving them any freedom and autonomy. The truth though is I think in all the jobs I’ve ever had, and most of the people I talk to, there’s actually very little of that that goes on in the world. Most people are undermanaged.

Pete Mockaitis
You know, it’s funny, I actually do ask for a daily accounting of my people’s time, but it’s because they’re in another country and we don’t have much face to face.

Patrick Lencioni
That’s different.

Pete Mockaitis
And it’s like six lines long most of the time, “I did this and then this and then this, and tomorrow I plan to do that.” It’s like, “Perfect. Thank you.”

Patrick Lencioni
Hey, you’re not micromanaging. You’re saying, “I just want to know what you’re doing so we can make sure that we’re all rowing in the same direction.” You’re not doing it because you’re questioning whether they’re golfing or watching too much TV.

Pete Mockaitis
Oh, not at all.

Patrick Lencioni
Right. And, by the way, you doing that at the risk of saying you’re overmanaging is far better than say, “Well, once a month or so, we check in and I see how they’re doing.” Successful businesses don’t undermanage. They know what everybody is doing and they help each other.

Pete Mockaitis
Okay. Cool. Well, so we’re situated there. Let’s dig into more about your latest book here. So, we’re talking about The Motive and so your core message there is that there are different motives that drive leaders. And can you break this down for us a little more?

Patrick Lencioni
Yeah, this is the 12th book I’ve written, and if somebody were to say, “Which book should I start with?” I would say this one because this is the first book where, instead of talking about how to lead or how to manage an organization, I address the first question, which is “Why?” Why do you want to be a leader in the first place? And some people have the wrong motivation for that. And I realize that because years ago, Pete, I was talking to a bunch of CEOs and giving them advice, like it was at a conference.

And I was giving them just straightforward advice about how to deal with things, and there were a handful of them that weren’t writing anything down, they were just dismissing everything, and some of the advice seemed really straightforward and other people were getting it. And I thought, I was starting to figure out what was going on with them, and I realized, “You know, if they’re doing this for the wrong reason, none of my advice makes sense to them.”

And the wrong reason is this, “I want to be a leader because it’s a reward for a lifetime of hard work. I’ve arrived, it’s a title, it allows me to focus on the things I like to do, and it’s kind of cool that I get to be the leader.” And there are a lot of people that go into leadership, young and old, for that reason, and that’s a terrible reason to be a leader.

You know, when I go to college graduations, people say to these people, “Go out and be a leader.” I want to yell, “No, please don’t be a leader unless you’re doing it for the right reasons.” You see, the right reason to be a leader is to say, “I’m taking on a burden and a responsibility. It’s a responsibility. And the economics of it are going to be very bad. I’m going to pour far more of my energy into being a leader so I can serve these people than I’m going to get back from it. And I have my eyes wide open. I realize it’s a responsibility and a duty, and it’s going to be hard.” If you do that, then you’re going to do the right things as a leader.

You’re going to say, “Yeah, I don’t want to have to have a difficult conversation.” That’s one of the other things leaders don’t do. “I have to have hard conversations with people. It is my job.” You know how many CEOs I worked with, Pete, who do it for the wrong reasons, who will do anything to avoid having a hard conversation with somebody? They’ll even fire somebody without that conversation just so they never have to have it.

Pete Mockaitis
Well, yes, I wanted you to actually go deeper into this, so I think it was in The Motive in which there was a tale of someone replaced a chief information officer, so one of the CEO’s direct reports, you called him Fred. Give us the whole story. It’s a winner.

Patrick Lencioni
Yeah, and that’s not fiction. All my books are fiction but that’s not fiction. That’s in the back of the book where I talk. So, a true story, a famous CEO of a big company, who I don’t think was a great leader, for obvious reasons when I tell the story, he had a chief technology officer, actually. I think I changed it too, and I knew the guy because we were doing some consulting in the organization, and the CEO wanted to bring in a different CTO, chief technology officer. And, instead of sitting down with the old one and explaining that, “I’m going to hire somebody to replace you,” he just hired a new one.

And one day, the old CTO comes to work and sees an email that goes out to the company saying, “Hey, John Jackson is our new CTO. Let’s all welcome him.” And this guy is like, “I thought I was the CTO.” And so, he calls the administrative assistant. I can’t make this up, right? In fact, this happened about 20 years ago, and I just wonder if I’m making it up because this seems too crazy. Somebody sitting here in the room listening to this is going, “Nope, you didn’t make it up. It was true.”

So, this guy calls the executive assistant to the CEO and says, “I’d like to meet with the CEO,” and they just can’t find any time to meet with him, “Oh, he’s busy.” Weeks, literally, like weeks go by. This guy is coming to work knowing that there’s another guy in the company with his title. Finally, he’s about to get on a private plane with the CEO, small private plane, he says, “I’ll finally have a chance to talk to him.” They get on the plane, the CEO closes his eyes, pretends to sleep the entire time, never speaks to him. Finally, the CTO just quits.

And that’s not just an interesting, wacky story. It goes to show you there are certain people that are leaders but they don’t have the courage or the character to sit down with somebody and say, “I need to give you some tough feedback,” or, “I need to let you know what’s going on.” Now, I get it, all of us are tempted to do that, and I’m not saying we should go around, like, “Hey, all I want to do is have difficult conversations with people.” But that’s our job.

And if a leader isn’t willing to do that, it’s probably because they’re doing it for the wrong reason, they’re like, “Hey, I’m supposed to have fun. Hey, I’m the leader of this department or this organization.” “I’m the principal of this school, the pastor of this church, the CEO of this company, I should get to pick and choose what I spend my time on, and that doesn’t sound interesting to me.” That’s a fundamental problem in organizations.

Pete Mockaitis
And I’ll tell you, even though my team is small, those words really resonated and echoed back to me in terms of, “Wait, am I just doing this because it’s fun? Am I just not doing that because it’s not fun?” And it’s really quite a look in the mirror in terms of like, “Yeah, oops.”

Patrick Lencioni
One of the people that endorsed the book, we sent the book to a CEO of a company, and he sent it back and he said, “Yeah, I’ll endorse it.” And his quote was, “This book rocked me to my core. I wish I had read it 20 years ago.” Hey, we all are tempted to do things for the wrong reasons. I look back at my tenure here at my own consulting firm and realized there were times when I was largely doing it for myself, and I wasn’t good.

And so, we can read this and go, “Okay, I don’t want to do that anymore. I have to do it for the right reasons.” So, life isn’t black and white, we’re not binary. We’re capable of changing, but sometimes we have to be asked that question or ask ourselves that question, “Is my motive really the right one?”

Pete Mockaitis
Yes. So, thank you for that. That’s good. And then, at the same time, you talk about there’s suffering, there’s sacrifice associated with leadership, and yet you’ve also got a concept called joyful accountability. How does that fall into things?

Patrick Lencioni
Well, that question is a great one, and the answer to both of those comes back to a very famous CEO, who’s become a friend of mine, named Alan Mulally. Now, Alan Mulally was the guy who turned the Ford Motor Company about, I don’t know, 10 years ago. He took over the company when they were hemorrhaging money and they were about to go out of business, and he took it over and didn’t take any money from the government. He’s an amazing leader.

I mention him because both of the questions you just asked me relate to him. First of all, he came to visit us after he retired, and he said, “I don’t like that part in your book, Pat, The Advantage, when you talked about management being a sacrifice, that there’s suffering involved. It’s a privilege.” And I was like, “Alan, that’s not how the world works anymore.” He was like a Boy Scout from Kansas. I think I even said, “You’re not in Kansas anymore, Alan.” And he thought, “Well, why would anybody not see that job as a privilege?” And I said, “You know how many people want to be the CEO because they think it’s cool and because they have the right to do whatever they want?”

And if we don’t help people understand the hard part, we’re inviting them to take a job that they don’t want. So, he got that. But the thing about Alan was he had this way of holding people accountable. I mean, here, he turned the Ford Motor Company around. I think he said he only fired one or two people. So, you’re thinking, “Wait a second. How do you turn a company…?” This was the DMV, basically, that he was taking over.

And he said, you know what he would do, he’d see somebody behave in a way that was contrary to what he wanted, he would go to them and he’d say, “Hey, I noticed that you were doing that,” and they’d say, “Yeah, I don’t really want to do this thing you asked me.” And he’d go, “That’s okay.” And they go, “Really?” And he goes, “Oh, yeah, we could still be friends but you can’t work here if you’re not going to behave that way, so it’s up to you. Let me know. You can either opt in and act this way, or you don’t have to, and honestly we can still be friends.” He wasn’t being snarky. And people opted out or they opted in, and very times did he actually have to manage them out of the organization because the point of the matter is, if you hold people accountable and tell them there’s no breathing room there, they’re going to choose the right path.

Pete Mockaitis
Right.

Patrick Lencioni
In or out. And so, he had this way of joyfully, he wasn’t afraid to do it. And I think that’s why he was able to turn that company around. He would have hard conversations that other people would just agonize over, and he’d go, “What’s the big deal? They can work someplace else.” And I think it’s a great lesson.

Pete Mockaitis
No, and I think that is great and I think there’s, I don’t know, just fear in the mix or maybe litigation, lawyers, lawsuits, wrongful termination. It seems like, I guess, those things do happen, but I have a feeling that these are kind of hobgoblins of the mind that are just sort of just trying to feed the justification to avoid doing the hard thing. So, yeah. So, I’d love to maybe zoom in there. So, let’s say, hey, you know you got to have a conversation, you don’t want to have the conversation, but here you are, you’re tempted to pretend you’re asleep on a plane or duck it by any means necessary, how do you summon the stuff from inside to do what needs to be done?

Patrick Lencioni
You mentioned the word justification. I think the false justification we use, and I’ve certainly done this in the past, because I’m a wus, I’m going to tell you I’m a wus. I don’t like doing this either. If we justify it by saying, “Man, I really care about the people that work for me, and I just don’t want them to feel bad so I’m going to avoid telling them this thing because it can make them really sad.” That’s a lie. And I used to do that. And then, one day, I realized, “Oh, wait a second. You know who I’m really wanting to avoid feeling bad? Me, because I’m going to be uncomfortable. They’re not going to feel better when I don’t tell them because it’s going to come back to bite them later.”

Pete Mockaitis
Sure thing. Either they’re fired, or their career doesn’t progress, or they get less cool, fun, interesting responsibilities. One way or the other it hurts.

Patrick Lencioni
Exactly. And so, I was like, “If I love these people,” and I used the word L, “I should love the people that work for me. Even if I don’t like them all the time, I should love them. And if I love them, I have to tell them the truth.” I mean, I have four sons, right? Do I think that I’m doing them any favor by not telling them the truth about things they need to get better at? No, I love my children. To deprive them of that is crazy. If I’m a manager, I should feel the same way. So, once I kind of debunked that myth that I was actually a nice manager by not saying things to people, it gave me the courage to do it. And I still have to do that and I struggle with it all the time.

Pete Mockaitis
Well, that’s excellent. And so, when you say that you need to love your people but not necessarily to like your people, how are you defining love in this context?

Patrick Lencioni
Love means I’m willing to do something that benefits them even at my own expense. I think love is a verb. I’m committed to them. I’m not even enjoying their company right now, and maybe that’s my own fault or whatever else, but I am willing to do what’s in their best interest ahead of mine. You and I are both Catholic, it’s a biblical definition, right, to…

Pete Mockaitis
Certainly.

Patrick Lencioni
I was just reading in the Bible today about loving your enemies, right? Well, first of all, so love our enemies, and the person who works for me, who actually, they’re on my team, and I have to tell them something that’s going to be hard for them to hear, I think I should be able to love them for sure.

Pete Mockaitis
Yes. And as we talk about your sons, I’m thinking about my son right now. He’s two years old.

Patrick Lencioni
Oh, wow.

Pete Mockaitis
And he’s in a habit of doing some screaming when he can’t get what he wants, and so we keep…

Patrick Lencioni
So, my advice to you is never discipline him, always let him do whatever he wants, and then when he’s 20, he’s going to be great. We would never do that.

Pete Mockaitis
No.

Patrick Lencioni
But so many leaders are like, “Oh, I don’t want to tell this person.”

Pete Mockaitis
It’s like, “I would have to remove this from you and it’s for your own good, and it’s going to cause you to scream, which is going to cause me to feel stressed and unhappy, but here I am making that sacrifice on your behalf. Much like I‘m going to share some feedback with a person and that’s going to make me uncomfortable. And if I make them uncomfortable, maybe yes, maybe no, in the moment, but ultimately has positive consequences downstream.

Patrick Lencioni
Yeah, I absolutely agree. You know, Pete, I’m going to tell you. So, my kids are 21, 21, 17, and 13. I have four boys. I know I’ve learned more about being a leader by being a parent, I think half of these books come about because of the crossover between being a parent and a leader at work and team work and all the things. There’s so much in family life that crosses over the business, and around humility, and around accountability, and around all these different things. So, it’s fascinating. My poor wife, because we have to apply this together, luckily, she’s interested in it too. And my kids are now, even my 13-year old, the other day said, “Yeah, this stuff is really interesting.”

Pete Mockaitis
That’s cool.

Patrick Lencioni
So, it’s going to be fun watching. What’s your two-year old’s name?

Pete Mockaitis
Jonathan.

Patrick Lencioni
Jonathan. It’s going to be fun talking to you in five years when he’s seven.

Pete Mockaitis
Oh, yes. Yes, I think so too.

Patrick Lencioni
That’s an exciting thing.

Pete Mockaitis
So, here’s a scenario I thought I might run by you just because I was thinking about our upcoming interview and prepping some stuff, and I was also doing some training for an organization, we’ll keep it broad, in the health space. And so, right before the training started, we’re sort of chatting a little bit, and then I heard someone ask an assistant who’s helping us out, “Oh, hey, what’s up with all the contractors and stuff next door?” They said, “Oh, there’s this executive and they’re building out a suite on this floor for his office.” And then they said, “Really? So, we’re cramped on space, we always have to do this and this and this, and this guy needs a suite and so we’re going to have even less space.” And then the assistant said, “Oh, yeah, and they might actually take over this conference room that we’re in too. They still have to decide that.” And they just sort of shook their heads.

And so then, I got you in my ear, thinking about organizational health and conflict and all these things, and I just thought, I said this out loud, it was like, “Wow! So, it seems like you perceive some sort of wrong or injustice is occurring here, and yet I have a feeling that they’re probably never going to know about it and you’re just going to feel a little bit miffed, a little bit resentful over it over time.” And it’s like, “Is that accurate or am I right way off based here? It’s like I’m pontificating.” And they said, and a couple more people chimed in, it’s like, “Well, yeah, I’m not going to say anything about it but it’s because they didn’t ask and they don’t care.” And I thought, “Man, this is the stuff. I think this is kind of like where the rubber meets the road in organizational health.”

It’s like on the one hand you could say, “Hey, this executive, it was hard to recruit him. He needs some things to be one over.” And then it’s like, “Is it really their job, or duty, or responsibility to explain every decision they make to the people who also dwell in the office?” But, at the same time, if you don’t get into that messy stuff, you’re just going to have this resentment and bitterness and stuff unspoken in the mix, and it’s harmful. So, Pat, putting you on the spot, how should healthy organizations deal with just these everyday kinds of things that need to be addressed?

Patrick Lencioni
Oh, yeah. Well, first of all, those people are right to wonder what’s going on. Secondly, it’s not their job to go ask why this is going on. Somebody else knows this and they’re not doing it. And so, I would say either somebody is letting that CEO or that executive down by not questioning it and preventing him or her from doing something that looks really bad.

Pete Mockaitis
Well, yeah, and that person’s going to have poor relationships with all the people that are kind of miffed because he’s taking all the space.

Patrick Lencioni
Or he knows and he doesn’t care.

Pete Mockaitis
Oh, yeah, possible.

Patrick Lencioni
Okay, this happened to me once. In fact, the first book I wrote, and the first part of that first book, came from this too. So, I worked with a CEO of a company, and he took over when the company was kind of in trouble, and they were laying people off literally, and so offices were coming open. And an office would come open and people go, “Ooh, can I have Fred’s office now that he’s gone?” And so, the facilities people, their numbers were actually going up because they were doing all these moves at a time when the company was hurting. So, the CEO rightly said, “Okay, it’s time for a little adult supervision,” and he announced that there would be a freeze on all office moves and facilities. Okay, that made sense.

The very next week there were contractors in the main headquarters, in the lobby where people came, building out the conference room that they use for customers and for meetings and turning it into his office. And the reason why they had to make it bigger was because he was having office furniture flown in from the East Coast and they needed to make it fit so they had to change the shape of the conference room. And I didn’t know at the time but we look at it now, his motivation was not to serve others. His motivation was about himself and it was completely consistent with who he was, and that is the problem.

Now, if he’s doing that and he’s just clueless, boy, somebody could be his hero and say, “Hey, do you realize what kind of a message you’re sending?” And that’s why a leader’s job is to surround themselves with people that are going to tell them the truth and push on them. And so, I think that’s a fantastic example that you gave, one that I’ve seen too, and I think it’s probably is an issue of motive.

Pete Mockaitis
Yeah, I think that’s quite likely. And so, I’m wondering, in this kind of a situation, what would be the ideal healthy way for leadership and teams to address this issue? It’s like, “Hey, we’ve got some competing demands on our limited space,” how do we hash that out optimally?

Patrick Lencioni
Right. What I would say is this, so that executive, his team, it’s a he it sounds like, his team, the question is, “Do they have the kind of trust, vulnerability, and conflict on their team to put these things on the table?” because that’s where it belongs. And he has to be the one to be vulnerable enough to say, “Hey, you guys could ask me any question and challenge me. Even if I disagree with you, I’m going to be honest with you about how I feel. I’m not going to punish you for that.” So, the question is, “Why isn’t that team having those honest conversations?” And the leader has to take it upon himself to create that kind of trust.

Pete Mockaitis
All right. Fair enough. Well-said. Pat, tell me, anything else you want to make sure to mention before we shift gears and hear about some of your favorite things?

Patrick Lencioni
Oh, no, but I’m going to go back to the question you asked at the beginning, and you said, “What’s one of the big insights?” The big insight, and I touched on it before, is this, what I’ve come to realize is that if you’re a leader and you constantly remind people about what they need to do to improve, 95% of the time, more, they’re going to either improve or they’re going to go someplace else where they fit better. And I think if I could give any leader advice, it would be become completely immune to your fear of saying to somebody, “Hey, you did that thing.” You talk too much during meetings, “Hey, you did it again. Hey, you did it again.” Most human beings, if they’re constantly reminded about how they need to improve, are going to do it because they’re tired of being reminded or they’re going to leave because they don’t want to change.

And if every company did that, there’d be far less firings, which are very painful, and far less lawsuits, and companies would actually start attracting the right people and repelling the others. And it usually comes down to a lack of courage on the part of leaders. So, that’s one of the things I’ve learned. So, I think that’s it.

Pete Mockaitis
Okay. Well, now, could you share a favorite quote, something you find inspiring?

Patrick Lencioni
Theodore Roosevelt once said that “Comparison is the thief of joy.” That’s a fantastic quote. And then my favorite Bible verse, it’s “My yoke is easy and my burden is light.” Sometimes I think we make things harder than they need to be because of our pride and because it’s self-oriented and things like that. So, those would be my favorite two.

Pete Mockaitis
Oh, thank you. And how about a favorite study or experiment or bit of research?

Patrick Lencioni
I like the one I learned in social psychology where the person, like if you go on the street, and you ask somebody, “Hey, will you help me do this?” A high percentage of people will say yes. And then if you introduce a financial element to that, fewer people would actually say yes because now they feel like it’s an economic decision.

Pete Mockaitis
Oh, so you pay people and then fewer of them want to do it because they’re getting paid.

Patrick Lencioni
Yeah, like, you’re unloading things out of your car, and you say, “Hey, can you help me carry this across the street? I need to unload my car,” and like X percentage would say, “Yeah, I’ll help you.” And then you said, “Now, I’ll offer them $5 to do it,” and fewer of them would actually say yes. And I think sometimes we think that people are coin-operated and it’s actually a disincentive to do that. And people’s inclination toward helping others and doing the right thing is much higher because it’s the right thing to do. And I think companies do that too, like, “We need to pay people more.”

It’s like, no, how about treat them well, get to know them, thank them, help them understand why their job matters. People really want to work hard. Great volunteers at a church or a nonprofit work harder than people being paid in a for-profit because they’re doing it for the right reasons. That’s not to say, “Hey, go cut your people’s pay,” or, “Don’t offer people money.” But I think sometimes we overemphasize the financial incentive of behavior and don’t appeal to people’s better nature.

Pete Mockaitis
And how about a favorite book?

Patrick Lencioni
You know, Dean Koontz is my favorite author, and he wrote a book called Brother Odd. He has a series called Odd Thomas, but there’s a book called Brother Odd which I think is fantastic. It’s funny. It’s mostly really deep and funny and clever.

Pete Mockaitis
Oh, thank you. And a favorite tool, something you use to be awesome at your job?

Patrick Lencioni
The whiteboard. You know, in my office here, we just add it onto our office and have a new cottage, and we’re like, “What artwork should we put on the wall?” And we just painted it with that. There’s a new paint that’s like it turns a wall into a whiteboard and, boy, do we use it, and good stuff comes out. I’m looking at stuff right now where we solve problems and then we leave it up there. So, the whiteboard.

Pete Mockaitis
Oh, cool.

Patrick Lencioni
In my house, at home, I should have whiteboards in every wall.

Pete Mockaitis
And a favorite habit, something you do that helps you become more awesome at your job?

Patrick Lencioni
Well, it helps me in my job and it helps me in life, and that’s praying the Rosary.

Pete Mockaitis
Very good.

Patrick Lencioni
Fifteen minutes a day, usually do it in the shower.

Pete Mockaitis
You do the whole Rosary in 15 minutes?

Patrick Lencioni
I could do it for 15 minutes.
usually that’s when I’m flooded with peace and it helps me think through my day and be more charitable and kind.

Pete Mockaitis
And how about a particularly resonant nugget, something you share that really seems to connect with folks and they quote it back to you again and again?

Patrick Lencioni
I always like to say, “The truth is don’t make the truth.” I mean, the perfect enemy of the good. And people repeat that back. Because I’m a believer in the 80/20 principle, “Get the first part done and we’ll figure it out from there.” And so, I think that’s one that probably comes back my way.

[36:01]

Pete Mockaitis
All right. And if folks want to learn more or get in touch, where would you point them?

Patrick Lencioni
I would point them to our website, which is TableGroup.com. And we have a podcast also called At The Table with Patrick Lencioni. We just started it this year and we’re having fun. We’re not as professional as you. You said you had a 302, 300 episodes.

Pete Mockaitis
Oh, that was the Bruce Tulgan episode, 302, yeah.

Patrick Lencioni
Wow! Yeah, I think we’re at like 25 but we’re loving it. We’re loving it. We’re enjoying it.

Pete Mockaitis
Oh, yeah, it’s definitely fun. Well, hopefully, you’re getting better and better as you get in there.

Patrick Lencioni
We’re trying.

Pete Mockaitis
Cool. And do you have a final challenge or call to action for folks looking to be awesome at their jobs?

Patrick Lencioni
You know, I think that take the risk of speaking truth to people in kindness, and good things happen. And we tend to think that the cost is going to be too high to do that, but if you speak truth and love and kindness and humility, you’ll be a leader’s hero, because we’re not all CEOs. But if you can go to the leader, nine times out of ten, they’re going to be glad that you told them, and five times out of ten, they’re actually going to listen to it and make you a hero, and four times, they might ignore you, one time they might not like you, but it’s always the best thing to do. I think people are too risk-averse when it comes to pouring into a leader upwards. So, manage up. Manage up.

Pete Mockaitis
Pat, this has been a treat. I wish you lots and lots of luck and blessings as you’re pursuing these adventures.

Patrick Lencioni
Thank you, Pete. And have fun with Jonathan and your family. God bless.

Pete Mockaitis
Oh, thank you. You, too.

551: How to Save Massive Time, Energy, and Frustration by Solving Problems Before They Happen with Dan Heath

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Dan Heath discusses how upstream-thinking can help solve problems before they even show up.

You’ll Learn:

  1. The power of “upstream thinking”
  2. How to get to the root of the problem
  3. How to avoid the blame game at work

About Dan:

Dan Heath and his brother, Chip, have written four New York Times bestselling books: Made to Stick, SwitchDecisive, and The Power of Moments. Heath is a senior fellow at Duke University’s CASE center, which supports entrepreneurs fighting for social good. He lives in Durham, North Carolina. The Heath brothers’ books have sold more than three million copies worldwide and have been translated into thirty-three languages.

Items Mentioned in the Show

Thank you, sponsors!

  • Pitney Bowes. Simplify your shipping while saving money. Get a free 30-day trial and 10-lb shipping scale at pb.com/AWESOME

Dan Heath Interview Transcript

Pete Mockaitis
Dan, thanks so much for joining us here on the How to be Awesome at Your Job podcast.

Dan Heath
Hey, thanks for having me on.

Pete Mockaitis
Well, I am so excited to speak to you in person and digging into the wisdom of your book here “Upstream.” And so, I want to maybe hear from you on the personal side, talking about preventing problems instead of reacting to them, is there an area in your own life where you’ve applied some “Upstream” mindset principles to get some good results?

Dan Heath
Yeah, there actually is one, and it’s so utterly mundane, I’m almost embarrassed to share it, but here was my epiphany. And, keep in mind, this was while I was writing a book on upstream thinking, and by upstream, I mean the quest to solve a problem before it happens. So, anyway, as you know, I’m a writer and, for whatever reason, I tend to do my best writing in coffee shops. So, I had this coffee shop I go to every morning, and I sit in the same place, and I order the same thing. And so, as a result of that, I’m constantly shuffling my laptop back and forth. I have a proper office that stays largely abandoned, and then I go to this coffee shop to write.

And so, I go to the coffee shop, I plug in the laptop, and then when it’s time to go, I pack everything up, I pack up the power cord, I get back to the office, I unwind the power cord, plug it in there, and it’s just a lot of power cord shuffling, and it’s just like an everyday annoyance. And I’ve been doing this for years. I mean, for years, I’m packing up, unpacking my power cord a couple of times a day. And then, in the course of this research, it occurs to me, “Hey, what if I bought a second power cord, and one of them could stay in my backpack when I go to the coffee shop, and one of them could stay permanently wired on my desk, so when I get back and I put my laptop down, I just easily plug it in.

And it was like this great relief where this little everyday annoyance was just gone forever. And then I started kicking myself, like, “How could I get in this mode where for years…?” I mean, it’s not like this was some major hardship obviously, but it was an annoyance, and it never needed to be one. And that’s the spirit of “Upstream” the book, in a very mundane personal story.

Pete Mockaitis
Well, I actually totally connect and relate to that. And I think about travel in terms of I’m always sort of reassembling my toiletry bag 3-1-1 and just get two of the things, and just leave the thing in the suitcase forever.

Dan Heath
Exactly.

Pete Mockaitis
So, lessons learned.

Dan Heath
And I think this is also true in relationships. Like, every couple has something that they bicker about, “Oh, you left the toilet seat lid up again,” there’s just some recurring irritant, maybe many, depending on your relationship. And so, I also got to talk to some people who’d figured out how to solve those kinds of problems. I met this guy named Ritch Marissa, and he and his wife, their thing was the hallway light. So, Ritch would go outside, often just to take the dog out or something, and he would flip the hallway light on. He’d come back in and he would inevitably forget to turn the hallway light off, and that bugged his wife, and so this was just like a little nagging problem for them.

And one day, Ritch Marissa has this epiphany, and realizes, “Hey, we don’t ever have to do this again. I’ve got it. I know how to crack this.” And so, the next day, he filed for divorce. No, I’m kidding. That is just a cheap joke. No, what he did was he went to Home Depot and he bought something I didn’t even know existed, which is called a light switch timer, and this is like a little panel that goes where your light switch is, and there’s buttons on it with different timestamps, so he can just press the five-minute button, the light comes on, and after five minutes, it turns itself off.

What is just so profound to me about this, I know these are little things, but it’s just a signal that, in our lives, it’s so easy to get into these patterns where we can fight the same problem again and again, and it’s like it takes a miracle for us to snap awake and realize, “Hey, with the right intervention, this could be gone forever.”

Pete Mockaitis
Yes, that’s resonant and it’s exciting, and I think it really just, even for the relationship itself, that’s a loving action. That’s going to say, “Hey, honey, I heard you, I listened to you, and I’m doing something about it,” and so not only do we have that irritant gone, but we have kind of, “Oh, that was really nice of you. Thank you,” going for you.

Dan Heath
If only more of our relationship problems could be addressed with a $10 gizmo from Home Depot, the world would be a better place.

Pete Mockaitis
Home Depot on Valentine’s Day is a peak day for them. Well, cool. So, then we talk about upstream and this notion of solving problems before they happen. I’d love to hear, have you made any particularly surprising counterintuitive discoveries about our human nature while digging into this stuff?

Dan Heath
I think what really captured me about this topic, because I’ve been thinking about this, I checked the other day, and literally my first Word file where I started taking notes on this upstream topic, was in 2009, so this has been on my mind a long time. And what kept me with it really involved the definition of a hero. So, when I say hero, what associations start popping to mind? It’s probably a policeman, or a firefighter, or a first responder, or a lifeguard who saves someone. It’s people who save the day, that’s a hero.

And it occurred to me at a certain point that there’s a whole another class of people who keep the day from needing to be saved. Someone invented a smarter building code that reduced the incidents of fires in buildings. And someone else consulted with lifeguards at public pools and taught them how to scan the pool in a better way and to position their chair in a smarter place. And a high school coach who’s mentoring teenagers in a way that keeps them out of trouble with the law. And these are upstream heroes.

These are people who stop emergencies from happening, and yet they hardly ever get any glory. In fact, their work may be largely invisible. We may have no idea what they did. I mean, how would we? How would we know that the consultant at the swimming pool kept a child from drowning one day? And so, that idea just captured me that there’s this whole invisible set of heroes whose identity we may never know even though they’re having a profound influence on us.

Pete Mockaitis
Yeah, that is powerful. And so, you’ve got a number of excellent tales that you’ve got some of the best story teasers on the back of your book that I’ve ever encountered, so well done. Well done.

Dan Heath
Thank you.

Pete Mockaitis
You and editor and team for those. So, maybe let’s just bring this to life with a little couple of those. So, tell us, all right, so there’s a school district, they had an issue with dropouts, and they did something upstream to prevent a whole lot of dropping out. How’s that story unfold?

Dan Heath
Oh, this is one of my favorites in the book. So, this is the Chicago Public School district, massive school district, I mean, this district has a $6 billion budget which is the same as the city of Seattle. So, when you talk about a difficult change environment, I mean, this is it. and if you want to hear a depressing stat, back in 1997, the graduation rate at CPS, Chicago Public Schools, was 52%. Like, if you were a student at CPS, you basically had a coin-flip’s chance of graduating. And it had been true for years.

And in a situation like that, people start to habituate to that level of success. If you were a teacher, or an administrator in this system, you’d certainly bemoan the fact that you’ve got a poor graduation rate, you regret it, but it almost comes to seem inevitable that, “Well, it’s a shame, but this is a complicated world. These kids come from difficult environments. Their K through 8 education didn’t serve them very well. And so, what are we going to do about it?”

Well, there was a point that came when they realized, “Maybe we can do something.” So, some academics, including Elaine Allensworth, figured out that there was a test they could perform in the ninth-grade year that could predict with 80% accuracy which students would graduate and which wouldn’t. And the test, I don’t mean like the SAT. All I mean is the test was, “Did the student take five full-year course credits and passed them successfully?” and, “Did they fail more than one core course?” Core course like Math or English. And if they received five full-year credits, and they didn’t fail more than one course, one was okay, but two was a real warning flag, then that meant they were off track for graduation.

And so, for the first time, it’s like they had a kind of smoke detector for dropouts, they advanced warning, they had time to do something about it. And so, this becomes a way of opening the door to changing the way the system worked. And some of the things they did, I’ll give you two examples, one was they realized some of their own policies were sabotaging kids. So, this was like the “get tough on discipline” era in schools, and it was routine at the time. For a couple of kids who shoved each other in the hallway, they’d get a two-week suspension. They just doled those out like candy.

But the research shows if you take a kid who’s kind of on the borderline, and you kick him out of school for two weeks, what happens is they come back, they’re lost, they feel bad that they’re lost, they end up failing the course, and then if they fail a couple of courses, they’re off track for graduation. It’s this absurd situation where nobody realized that by handing out a two-week suspension, they might well be dooming them to dropping out of high school, but that’s what the research showed.

The other thing is they reorganized the way that they worked. So, all of the freshmen teachers, traditionally, they would just stick to their own within the discipline. The Math teachers would meet with Math, and English with English, and so forth. Now, they formed what they called freshmen success teams where they met across departments and they would go student by student. I mean, they would be sitting around the table, literally saying, “Okay, Michael. How are his grades and his subjects right now? How has his attendance been the last couple of weeks? Have we been calling his home when he’s missing school? Can we get him some extra tutoring?” And they’re figuring out, on the fly, how to take these kids who are at the risk of being off track and getting them back on track.

And what happens is, as the years go by, and as they learned how to get ahead of these problems, how to encourage attendance, how to get extra resources for the students who need it, they start moving the needle. They start moving the needle at the freshman level. More and more students are now on track versus off track. And then, four years later, when it comes time to graduate, this early warning system pays off. And, now, the graduation rate in CPS is something like 78% or 79%. I mean, I can’t overstate the magnitude of a change that has to happen in a system like CPS to move the graduation rate by 25 points. It’s just astonishing work.

And for every student that graduates that, in an alternate reality probably would’ve dropped out without this work, their lifetime income is going to go up by $300,000 to $400,000. I mean, this is a massive, massive effort that started with the upstream notion to think, “Hey, what if we could prevent some of these kids from dropping out?”

Pete Mockaitis
Absolutely. So, that’s so powerful right there. It’s like, “What is the smoke detector, or the early warning system, which then, in turn, lets us prioritize and wisely concentrate resources or interventions to prevent the issue from occurring there?” So, I think that can have all kinds of applications in all kinds of settings, professionally and personally, in terms of, “What might make high-performing, high-potential employees want to drop out or exit the organization? What are some of those tests you can run?”

Dan Heath
That’s actually a great example. And I think a lot of organizations, we constantly hear about the big data revolution, and I think in many cases it’s overblown. But I think this is one case where it’s not, where what data is so powerful at doing is figuring out ways to detect that problems are coming. And I’ve spoken with a number of HR leaders that have figured out very diagnostic tests for knowing when employees are in trouble, when they’re at the risk of leaving.

I’ll give you another example on the customer side. So, LinkedIn, we all know LinkedIn, they sell a very expensive package to employers who are doing a lot of recruiting on the site, and it’s a subscription. What they figured out years ago is the way it would work is the employers would subscribe to an annual thing, and then about month 11, the sales reps would start really putting the full-court press on the customers just to make sure that they were going to renew because that’s how everybody was measured, is what’s the retention rate. And, churn, as most of you probably know, churn is a measure of how many people are not renewing. And so, churn is always what you’re fighting in a subscription business.

And so, they would send in the rescue troops in month 11 to make sure these customers are going to renew. And somebody started digging through the data, and they made a curious discovery that they could predict as early as the first four weeks of a customer’s subscription who was likely to renew and who wasn’t. And, at first, they were puzzled, they’re like, “How could we possibly know from the very start who’s going to renew and who’s not?” You would think that it would take time to figure that out. And they dug in and they realized the deal was people either got value from LinkedIn almost immediately or they never did.

So, they realized, “Aha, we’ve got to get out of the business of rescuing customers, and we’ve got to get in the business of making sure customers have a bang out first month.” And so, they put a lot of resources into onboarding customers, and they would do a lot of handholding where if you’re hiring a developer in Atlanta, they would get on the phone with you and walk you through step by step, “Okay, here’s how to define your target profile. And I’ve actually written some copy for you for emails that you can send out to prospects.”

And the effect of this work is, over a period of four or five years, if memory serves, churn rate was cut in half, even as the company’s revenue absolutely exploded. And that is an intervention that’s probably worth tens if not hundreds of millions of dollars in value, simply by paying attention to, “How can we see problems before they happen?”

Pete Mockaitis
Yeah, that’s huge and it totally makes sense in terms of you’re getting the value or you’re not getting the value, and you can know that pretty early. So, Dan, hey, keep it coming with these stories. So, you also mentioned that there’s an online travel website, and they were able to cut 21 million customer service calls by doing something a little different with their website. What was that?

Dan Heath
This story is almost hard to believe. So, this is a story about Expedia, and in 2012, there’s a guy named Ryan O’Neill that was digging through a bunch of data, and he found something that even today I find hard to believe, which is that, at that time, for every hundred customers who booked travel, a flight, or a hotel, or rental car, whatever, 58 of the hundred would end up calling the customer support center for some kind of help.

Pete Mockaitis
Wow.

Dan Heath
Which would seem to nullify the whole point of the online travel model. It’s sort of like if you went to a gas station where you could swipe your credit card at the pump, and then 58 out of 100 times something went wrong where you had to go inside. Like, you’d be pretty irritated with that business. And so, he starts to dig in, “Well, what in the world is going on? Why are so many people calling us?” He figures out the number one reason that people are calling is to get a copy of their itinerary. That’s it. Number one. Twenty million calls were placed in 2012 of people asking for a copy of their travel itinerary, and he’s just kind of slapping himself in the forehead, and he’s thinking, “How could this happen?”

Well, there’s a good reason why it happened. I mean, Expedia is a big profitable business. It’s not like these people were ignorant or unskilled. What happened was they were organized to neglect this problem. So, there was a whole set of people whose job it was to get customers to the site, and then there’s a whole another set of people whose job it was to make sure that people who came to the site, ended up booking something, and there’s a whole another set of people whose job was to keep the website running smoothly, and a whole another set of people whose job it was to take the customers’ calls and resolve them quickly.

But if you look across this whole ecosystem and you ask, “Whose job is it to make sure customers never need to call us?” The answer was, “Nobody.” It was nobody’s job. And if that goes even worse than that, that nobody would even benefit if that were true. And so, the top executives at Expedia realized they’ve got a problem, and they formed a special taskforce and put them in a war room, and they challenged them, “Hey, let’s keep these customers from needing to call us.” That’s the shift upstream. “Rather than get more efficient at handling customer calls,” which had been the way they’ve measured themselves to-date, “let’s just keep these calls from happening.”

And the solutions came very quickly, as you’d well imagine. They gave customers ways to get their own itinerary, and they added different trees to the IVR, “Press 2 if you need a copy of your itinerary,” and they changed the way they sent the emails with itineraries so they wouldn’t get in the Spam folder. And what happens is those 20 million calls essentially vanished, they go to zero over a very short period of time.

And I think what this tells us is something interesting, which is organizations always push for specialization. We’re divided into silos, we’re pressed to specialize, and there’s good reason for that. It makes things more efficient. It makes us more productive. But it can also be a deterrent to solving really thorny complex issues because we stay in our silos, and those silos create blinders. And so, all of a sudden, really obvious questions like, “Hey, why do all these customers need to call us if we’re an online website?” It’s like it gets purged from our existence because of the way we’re organized.

And I think that’s the promise. If you’re listening right now, and you’re in a big organization, let me promise you, there are issues just like this, these silos-spanning issues, that are waiting for someone to discover them and organize a response, and that’s the upstream mindset.

Pete Mockaitis
And those are great opportunities to bring your career upstream or up the hierarchy when you identify and you get proactive, and then you make some real value happen by tackling it. That’s huge.

Dan Heath
Exactly.

Pete Mockaitis
Well, so then we’ve heard some fun stories. Now, I want to get your view on kind of what are the fundamental principles or key questions to ask to surface these opportunities all the more readily and to not let them just sit under the radar for months and years?

Dan Heath
Yeah, let me identify, I’ve got a couple of skills that I think people can consciously build that will make them better upstream-thinkers. And the first is anytime you’re trying to prevent a problem before it happens, you’re going to be dealing with complicated systems, and you’ve got to understand the system, and, in particular, you’ve got to find some point of leverage, somewhere you can tinker with the system to get a different result.

So, in the case of Chicago Public Schools, they had this discovery that, “Hey, ninth grade is the critical time when we can take a student who’s off track and get them back on track.” So, one way to get closer to problems to identify a point of leverage is to immerse yourself in the specifics of the problem. So, I’ll give you an example. There’s an organization called the Crime Lab that’s associated with the University of Chicago, and they do a lot of research on, “What policies could potentially help reduce the crime rate?”

And so, years ago, during the forming of the Crime Lab, they were asked to work on the problem of gang violence, which is a recurring problem in Chicago. The problem there has to work on was homicide, and the lore was that the homicides were the result of gang violence.

And so, they started by questioning that premise and tried to get closer to the problem. And the way they did it was they went to the medical examiner who always writes a report on why young people died, or why anybody died, and they went through the last 200 reports of homicides of young people and they just read through the situations to train their intuition. And, yes, there were some that were the result of gangs jockeying for power or what have you, but what was far more common was a situation where some teenagers got in a fight over something stupid.

One example was a couple of groups of guys, one of the groups accused one of the guys on the other group of stealing someone’s bike, and the fight escalated. And in some places, a fight like that might’ve ended in throwing some fists. In this case, one of the kids had access to a gun and somebody got shot. And that became, what they discovered in these medical examiner reports, as they got closer to the problem, they saw this is not fundamentally about gang violence, that if they wanted to intervene to reduce the number of homicides, we got to somehow be able to speak to these situations that are normal teenage disagreements that escalate out of control.

And what they eventually did is they created a program that trained young men in high schools how to resist that urge to go nuclear when you get mad or when you get in a disagreement, to build a little bit of self-control and reflectivity in situations like that. But the way they discovered that point of leverage, which turned out to be quite successful, was by getting closer to the problem.

Another example, the same thing, that I write about in the book is there were some architects that helped design big public spaces like airports, and they’ve been asked to think about how to make those spaces more convenient and more accessible to older adults, and these were young architects. So, how do you get closer to an issue like that when you’re not in the target population? And they discovered something that’s called an age simulation suit, which is something you can wear to help you feel, not just learn about it, not just hear about it, but feel for yourself what it’s like to be older.

So, there are elbow braces that mimicked the reduced movement you get in your elbow joint. And as you age, you lose dexterity in your fingers, so they have these gloves that simulate the loss of dexterity. And they wear something called overshoes which simulate nerve loss in your feet, which makes it a little bit harder for you to perceive where the ground is. And so, they wear these age simulation suits, and they walk around DFW just to feel what it’s like to be old. And any business traveler listening to this knows DFW will make you feel old, just in general, much less without an age simulation suit.

But they start figuring out, “Hey, we need another step on the escalator because it’s really hard to get your balance when it’s moving as quickly as it is.” And they realized that there aren’t enough opportunities to take a rest, that these big hallways are intended to help people get where they need to get quickly, but older people need breaks, and there just aren’t good spots where they can put their hand on a railing or take a seat for a moment, and they realized they need some rest stops.

So, just to zoom out to the bigger issue here, what I’m saying is whatever industry you’re in, whatever role you have, there’s always going to be recurring problems in your organization. And one systematic way that you can get better at helping your organization solve those problems is to be the person who has the instinct to get closer to the problem, to go through those medical examiner reports, to put on an age simulation suit to give yourself a better instinct about what it’s like to navigate these spaces. I think that’s an upstream skill that we can all cultivate.

Pete Mockaitis
Certainly. And I imagine the hang-up and the reason people don’t do that is they might say, “Oh, my gosh, who has time to look at 200 of these reports or to find this special suit and to go through it?” And so, I guess, in the moment, I would imagine that can feel like, “Where will I find the time?” But if you zoom out, boy, I imagine there’s huge multiples of time saved associated with doing this stuff.

Dan Heath
You have put your finger on what may be the fundamental tension of upstream thinking. And I want to tell you about a study that I think really brings this tension to life. So, a woman named Anita Tucker, who’s just a fascinating thinker, at one time she ran a frosting plant for General Mills, I believe. And now she is an organizational researcher, and, at one point, for her dissertation at Harvard, she followed around nurses. So, she shadowed them during their day, and she figured out that nurses are basically professional problem-solvers. There’s always something weird popping up that they had to deal with, and sometimes it’s small stuff, like they ran out of towels, and they had to figure out where to get a towel for a patient.

Sometimes it’s bigger stuff. Like, Anita Tucker tells a story of a nurse who was trying to check out a new mother from the hospital ready to take her baby home, but the security anklet that they put on babies had fallen off and so you can’t check out the mom without that, so they went on this frantic search, “Where is the anklet?” It turns out it was just in the baby’s bassinet. So, easy, they checked out the mother and were done.

Three hours later, the same thing happens again with a different mother, and this time they do another search, they can’t find it, and so they have to go through another set of protocols to resolve the situation, but they managed to get the mother out. And so, when Anita Tucker first encountered this story, she thought, “Hey, these are nurses being really resourceful. They’re scrappy, they manage to work around problems, they don’t let things stand in their way, they don’t go running to the boss every time something goes wrong. It’s an inspiring portrait.”

Pete Mockaitis
These were the heroes.

Dan Heath
Until you realized that what she’s describing is an environment that never learns, that never improves, because when you work around problems, and when you heroicized people who work around problems, what you’re guaranteeing is that those problems will recur.

Pete Mockaitis
Because you get glory by addressing them.

Dan Heath
Exactly. And it didn’t occur to the nurse who check out two mothers in three hours that had problems with the anklet falling off to ask, “Hey, why is this happening? What can we do to stop this from happening? What’s the root cause? How can we make sure we never have to solve this problem again?” And I want to be clear here, I’m not throwing stones at nurses. I think that this study could’ve been done on any profession that it would’ve come down to the same conclusion, which is our lives are so busy and so full of emergencies and issues to be dealt with that we get in this trap of, “Let’s just get through it. Let’s just work around. Let’s figure out how to get by.” But what we have to realize is that is a trap. When we work around problems every day, we guarantee ourselves to have to deal with them again tomorrow.

And so, when you said, what it feels like in the moment is, “Oh, my God, where am I going to find time to go through to 200 medical examiner reports?” that’s exactly the issue, is in the short term, it is extra work, it is stepping outside of that cycle of workarounds, but it’s basically the only ticket out of that self-perpetuating cycle of firefighting. And that’s something, that trap of firefighting, is something that I call in the book tunneling. It’s actually a term from some psychologist in a book called “Scarcity.”

But I love that mental image of tunneling, that that’s the trap we get in where we kind of lose our peripheral vision and all we’re doing is making our way forward, “How can I get through these problems as quickly as possible to get onto the next set?” And we start to lose sight of the big questions, which is, “Is this tunnel going the right way? Is there an easier way to get where we’re trying to go? Are we even pursuing the right goals?” When you’re in the tunnel, the only real direction is forward.

Pete Mockaitis
Yeah, and that totally connects and resonates. Like, even just biochemically, it seems like, “Okay, all right, my back against the wall. We got to hustle. We got to hurry. Let’s do, do, do, go, go, go,” and then it’s that vicious cycle.

Dan Heath
It is. And I empathize with the nurses because what are they suppose to do? I mean, honestly. So, the mother is trying to get checked out, they can’t find the anklet. What would we advise of the nurse in that moment? Is she suppose to conduct a root-cause analysis of the circumference of the anklets and contact the manufacturer and talk about product improvements? It seems absurd. It’s almost like we can’t envision another reality other than the tunneling reality.

But just to give you a feel for a way out of the tunnel, what many health systems have done is start to hold standing meetings, sometimes called safety huddles, where a bunch of nurses and doctors and staffers get together in the morning, it might be a 20-minute meeting, and they talk about, “Okay, what near misses did we have yesterday where someone was almost hurt or we almost gave somebody the wrong medication? What can we learn from that? How can we improve our processes to make sure it doesn’t happen again?” And then they look forward to that day, “What’s coming today that’s more complex than usual that we should think through?”

And I think that’s a perfect example of how you can escape the tunnel, even if it’s just for a 20-minute meeting, because that’s the forum where that nurse could’ve said, “You know, something weird happened yesterday. We had two mothers with the same problem happened to.” And that’s a meeting where you could deputize a subgroup to work on that and figure out what was going on and solve it. So, I think it may be too much to ask of humanity to figure out how to get out of our tunnels because it’s such a powerful instinct. But if we can even escape them for short periods, we can make much smarter choices.

Pete Mockaitis
I’d love that. And so, maybe while we’re just sort of imagining workplaces at large and recurring problems that may have the potential to be solved once and for all, what are a couple of things that just leap to mind for you that we should have our eyes open toward as professionals?

Dan Heath
One thing, I think, has to do with a sense of ownership. So, in the book I talk about what’s curious about downstream actions is that they’re often obligatory. If someone shows up at the hospital having a heart attack, the surgeon can’t opt out of that work. Or if a preschooler has an accident, the daycare worker can’t opt out of the diaper change, right? When there’s a problem that presents, we have to deal with it. Versus, upstream problems, curiously, are sometimes voluntary. People have to step up and say, “This problem, it wasn’t something that I created but I’m going to be the one to fix it.” And that’s something that relates to accountability.

I’ll give you an example from the work world. I talked to an administrator named Jeanie Forrest who works in the Yale Law School. And when I talked with her, she was having this staff issue that she was dealing with. So, there were two staffers, these are disguised for obvious reasons. The boss, let’s call her Barbara, and the director, we’ll call Dawn. So, Dawn had filed a complaint about Barbara, her boss, for belittling her and kind of undermining her in certain situations, and this had landed on Jeanie Forrest’s desk. So, she asked the two women to come in, and Jeanie Forrest said, “You know, this situation is my fault. I had heard rumors that you two weren’t getting along, and I sensed it myself. And you know what I did? I just stuck my head in the sand and I thought, ‘Well, maybe this will go away.’ So, that’s on me. This is my fault.”

And then she turned it around and she said, “I want each of you to tell the story of this situation as if you’re the only one in the world responsible.” And at first, the women had a hard time honoring the spirit of that request, so Barbara, the boss, said, “Well, every time I ask something of you, you shut me down and you give me weird body language.” And Jeanie Forrest said, “Barbara, that sounded awful lot like you’re blaming Dawn. Can you try that again?” And Barbara said, “Well, you know, I could’ve done a better job explaining. I thought that you should just accept what I said and I dismissed your questions. But I could’ve done a better job being patient.”

And Dawn, for her part, said, “Well, I just accepted your huffing and puffing, but the truth was I just really didn’t understand, and I should’ve made it clear. Hey, I‘m not being resistant. I just don’t understand what you want. Can you help me?” And so, they end the meeting on this kind of detente and they tried to change their relationship. And I emailed Jeanie Forrest six weeks later just to see what have happened with this, and she wrote back and said, “They’re working together productively and cheerfully, it’s a little insane.”

And what I want to highlight about this is I think it’s a kind of metaphor that so many times in life, we have the sense that the problems are happening to us, that we are the inheritors or the victims of problems, but this reframing thing that Jeanie Forrest did of telling the story as if we’re the only ones responsible, it helped all three of the people involved realize, “Hey, we have agency here. Like, we could’ve made different choices, and we can make different choices going forward. We have influence here. We have power.” And I think what that means for upstream efforts is, often, we may find ourselves voluntarily taking charge of something that we had nothing to do with causing.

I was talking to some people from a large software company who were organizing a taskforce on sexual harassment. And it wasn’t a problem of their making. They weren’t the harassers, they had nothing to do with the environment. But they said, “This is a problem that needs solving. What if we sign up to be the people who try to solve it?” And that kind of enlightened volunteerism is something I find very, very inspiring about upstream work, and it goes back to that notion of upstream heroes, the people whose work can be invisible even though it has profound impact.

Pete Mockaitis
Dan, this is so much good stuff. Tell me, anything else you want to make sure to mention before we shift gears and hear about some of your favorite things?

Dan Heath
The final thing I might mention is, and this is something I feel you could carry through with you your whole career, is to be cognizant of the downside of measurement and metrics. We live in a measurement-obsessed culture, especially in business these days. And measurement is wonderful, it makes us more efficient, it gives us clear targets, but there’s always a downside to measurement, and much of that downside has to do with gaming and the way that measurement alters our behaviors in ways that are sometimes good and sometimes bad.

So, as a concrete example of the bad side, there was a policy passed in the UK for hospitals where they required hospitals to see patients in emergency rooms within four hours of their arrival, so enlightened intent, “We want to make sure that patients are seen, that these crazy wait times, 12 hours, 16 hours, would go away forever, and that we force hospitals to reinvent their processes.” So, very enlightened. What happens is a lot of hospitals started doing this thing where ambulances would bring patients and stay in the parking lot until they thought the patients were within four hours of being seen, and then they would rush them inside so that they can meet the four-hour rule, right? A perversion of the intent of the policy even though they technically met the statistical definition of it.

And that’s something that you’re going to see in your career again and again and again and again every time there is a sales incentive or a bonus offered. You can bet it’s going to do some good and some bad. But I’ll tell you, most of your colleagues are going to be woefully naïve and think only about the good side, and you can be the one that says, “Hey, let’s kick the tires a little bit here.” One test you can run is what I call the lazy bureaucrat test, and that is if someone wanted to ace the measures or incentives that we’re setting out with the least effort possible, what would that look like?

Or another one you might call the defiling the mission test, which is imagine that we ace all of these measures that we’re setting, and yet our work ends up harming the mission, the reason we’re all here. What would that look like? Like, in the case of the ambulances waiting in the parking lot is a great example of defiling the mission. You’ve aced the measures but defiled the point of healthcare which is to pay attention to patients and their needs. So, I just want to leave that as a provocation that you can be the person whose attention to the dark side of measurement keeps your organization out of a lot of nasty traps.

[39:03]

Pete Mockaitis
Boy, Dan, I can’t resist now. You dropped a couple test on us and those were so good. Do you have more that you can reveal?

Dan Heath
Yeah, actually, there’s another one that I’ll steal from Andy Grove, the former CEO of Intel, and that is he said, “Any time you’ve got a quantity measurement”’ so you’re paying people, maybe you’re paying the janitorial crew based on square footage cleaned, or you’re paying your data-entry people based on the quantity of documents entered.” He said, “Any time you got a quantity measurement, you’ve got to counterbalance it with a quality measurement,” because what you’ve got to realize is if you incentivized people to clean more floors, what comes part and parcel with that is they’re going to do a worse job per square foot in the service of getting to a larger area.

Or they’re going to go so fast on the data entry that they’re making lots of mistakes for the sake of getting through more documents. So, the way to balance the scales is to combine quantity with quality, where quality might be some kind of spot checking of how good the rooms looked after they’re cleaned, or with data entry, to make sure that there’s some metric that specifies how good the precision was between the entry and the original document.

And ever since I became aware of that test from Andy Grove, I’ve started seeing situations where really smart people put it into place. Like, even in the police force in L.A. For years, police were adopting these metrics of reduce crime, reduce crime, reduce crime, and that leads to things like stop and frisk. Stop and frisk is effective at reducing crime but it has this just grotesque side consequence of subjecting a lot of innocent people to abusive treatment. And so, they’ve learned to counterbalance the focus on reducing crime with a measure of community trust, “How much do you trust the police? Do you feel like they’re doing a good job looking out for safety?” And that’s a beautiful way to kind of restore order or a sense of balance to the work. So, that’s another one I would add to the quiver.

Pete Mockaitis
That’s good.
Well, then could you share with us a favorite quote, something you find inspiring?

Dan Heath
My favorite quote, this is from a guy named Paul Batalden, who’s a healthcare expert, he said, “Every system is perfectly designed to get the results it gets.” And that quote has become just like a brain worm for me. It’s so enlightening because it tells you in situations like Chicago Public Schools that at one time failed 48% of its students. It tells you the way CPS is setup is designed to fail half its students. So, if we’re going to get different results, we have to change the system.

But I think it’s also true in our own lives. I think that’s what’s so powerful about this quote, is if you find yourself perpetually dealing with the same dissatisfactions or the same frustrations, it’s a sign that the system is setup wrong. How do you change the system? We can’t just hope our way to a different result.

Pete Mockaitis
And how about a favorite book?

Dan Heath
This is definitely not my favorite book but I thought, in the wake of Clay Christensen’s recent passing, he wrote a wonderful book called “How Will You Measure Your Life?” that I think is a great excuse for all of us, just to be self-referential here in this podcast, to step out of the tunnel and think about the big picture and where we’re headed, and “Are we making the right micro choices to get the kind of macro results we want in our lives?”

Pete Mockaitis
And a favorite tool?

Dan Heath
Let me give you a small one. There’s an online tool called Toggl, and it has turned me into a time-tracker, and that’s what it is, it’s a time-tracking software that allows you to just see how you’re spending your time and devoted to categories. And I’ll tell you, I am not like a natural personal productivity person, okay? I am not the kind of person who puts labels on file folders, so this was unnatural for me. So, take heart if you’re a naturally-unorganized person. And it has really changed my day-to-day work. It’s made me much more cognizant of how I spend my time, and I’ve gotten strategic about it. Like, I’ll actually, from time to time, just do a check-in and see, “Am I putting hours against the things that are most important to me?” And that little tool made it a lot easier.

Pete Mockaitis
Oh, thank you. And how about a favorite habit?

Dan Heath
I’m going to throw out my coffee shop habit. And, look, I know everybody’s going to have a different one. But something about going to the same environment really brings out the best work for me, and I think it’s because it’s just like everything in the environment at the coffee shop now is a trigger or a cue to me to get into writing mode. It’s like it helps me get over that hump because I have so many associations with the look of the place, and the smell of the place, and the taste of the coffee, and it’s like my sensory environment is helping me replicate that state of getting into thoughtful writing mode.

Pete Mockaitis
And is there a particular nugget that you share that really seems to connect and resonate with folks, they quote it back to you often?

Dan Heath
With this new book, what I found that resonates with people is this idea that the need for heroism is usually evidence of systems failure. If you think about we celebrate a lifeguard who jumped into the pool at the YMCA and saved a drowning child, obviously we want to celebrate that lifeguard, he may saved a life, but the need for them to jump in the pool and do the saving, maybe evidence that something was wrong with the way things were operated. Was the lifeguard chair too far from the pool and they have blind spots? Or was the lifeguard on their phone? Or was the lifeguard looking at something interesting happening in the pool and they had dropped their discipline of scanning the pool every 10 seconds? So, I think we should distrust heroics in a way, that if we’re repeatedly relying on heroics to get the job done, then maybe something bigger is at stake.

Pete Mockaitis
Perfect. And if folks want to learn more or get in touch, where would you point them?

Dan Heath
Come visit me at UpstreamBook.com and there’s resources on the site that are free, there’s a lot more about the book if you’re interested, so, yeah, come there.

Pete Mockaitis
And do you have a final challenge or call to action for folks looking to be awesome at their jobs?

Dan Heath
I would say in the next week, let me challenge you to find a way to get out of the tunnel that you’re in, whether that is just taking an hour off of work and going and sitting in a coffee shop with your phone off and thinking about the big picture. Whatever that looks like for you, escape the tunnel and think about how you might knock down some of those recurring problems and irritants in your life.

Pete Mockaitis
Dan, this has been a treat. Thank you. I wish you tons of luck with “Upstream” and all your adventures.

Dan Heath
Thanks so much, Pete. It’s been a real interesting conversation.

550: How to Free Yourself from Conflict with Dr. Jennifer Goldman-Wetzler

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Dr. Jennifer Goldman-Wetzler shares what to do when your attempts to resolve conflict fail.

You’ll Learn:

  1. The simplest way to stop conflict from overwhelming you
  2. How to untangle the complex web of recurring conflict
  3. The smartest thing to do when a conflict goes nowhere

About Jennifer:

Dr. Jennifer Goldman-Wetzler is founder and CEO of Alignment Strategies Group, the New York-based consulting firm that counsels CEOs and their executive teams on how to optimize organizational health and growth. Author of OPTIMAL OUTCOMES: Free Yourself from Conflict at Work, at Home, and in Life (HarperBusiness, Feb. 25, 2020), she is a keynote speaker at Fortune 500 companies, public institutions and innovative, fast-growing startups, where she inspires audiences of all kinds, including those at Google, Harvard and TEDx, and in her popular course at Columbia. A former counterterrorism research fellow with the U.S. Department of Homeland Security, she is a graduate of Tufts University and holds a Ph.D. in Social-Organizational Psychology from Columbia University.

Resources mentioned in the show:

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Dr. Jennifer Goldman-Wetzler Interview Transcript

Pete Mockaitis
Jen, thanks for joining us here on the How to be Awesome at Your Job podcast.

Jennifer Goldman-Wetzler
Pete, thanks so much for having me.

Pete Mockaitis
Well, I’m excited to dig in. First, I understand that you hiked the Appalachian Trail. And did you do the whole thing or what’s the story here?

Jennifer Goldman-Wetzler
I did not do the whole thing, although that’s a nice goal. I’ve been on many parts of it but the part that I write about in the book is four days in the New Hampshire White Mountains part of the Appalachian Trail.

Pete Mockaitis
Lovely. Cool. And so, can you tell us any key lessons learned or what inspired you to get out there?

Jennifer Goldman-Wetzler
Well, what inspired me to get out there is two things. One, on the personal level, I just love being outdoors. I find connecting to nature to be just spiritually grounding and nurturing and fun, so that’s one piece of what inspired me. And then the other piece is what I write about in the book, is I was in the middle of writing the chapter on emotions when I decided to go on the trip. And I decided that what I would do was experiment with feeling each of my emotions as they arose and just noticing them and naming them, identifying them, and then seeing if I could just be with them and let them go.

And that is exactly what I did. And it was a very rainy few days on the trail, and I began to notice that the emotions were really, like the Buddha say, like the weather. They came and they went just like the rain came down heavier and then came down lighter, and then sometimes went away, and the sun came out. And so, it was great learning about what it was like to really feel the emotions as they come because there were so few distractions on the trail like there are in the big city.

Pete Mockaitis
Boy, so that’s intriguing right there. So, what is the implication for professionals or folks dealing with conflict that that is how it works with emotions, they come and go like the weather? What does that mean for us?

Jennifer Goldman-Wetzler
Well, first of all, it means we do not all need to go hiking on a trail for four days.

Pete Mockaitis
Yeah, fast forward, it’s just you.

Jennifer Goldman-Wetzler
Or even hours, right. What it means is it can be important to just pause. That might mean 30 seconds of pausing while you’re on the commuter train, and you look up from your phone and look out the window at the view, or that might mean in the middle of switching computer applications, taking a deep breath and standing up and then sitting back down and keep on going. But any practice that you can do. Frequency is, I think, much more important than duration. So, doing something like that once a day, or twice a day, in the morning and in the evening, is very helpful.

For all those people out there wondering, the question I get so often is, “What do I do when I’m stuck in conflict and it’s like the heat of the moment, and I’m just so triggered and I’m so angry?” One of the best practices that I know of is to, on a regular basis, pause and notice, “What am I feeling right now?” That’s all there is to do. And it can be very uncomfortable, of course, but we gotta do it.

Pete Mockaitis
Oh, Jen, we’re on a great start.

Pete Mockaitis
So, then I want to hear, so you got this book Optimal Outcomes and I love things being optimal. Fun fact, the name of my company is Optimality LLC. So, tell us, what made you conclude that the world needed you to write this book Optimal Outcomes? What’s sort of like the main issue we’re addressing here?

Jennifer Goldman-Wetzler
Yeah. Well, first of all, I’ll say I love that we both like things being optimal. I think there are strengths and limitations to that, which I can talk about. But the reason why I think the world needs this book is because all of the conflict books that I know of that I’ve been sharing with people for years that are great, all help people resolve conflict. And the problem is sometimes conflict is not resolvable. I want to say that again.

Pete Mockaitis
I’m hearing Gottman echoing in my ear.

Jennifer Goldman-Wetzler
Yes.

Pete Mockaitis
Continue, yeah. It’s not resolvable.

Jennifer Goldman-Wetzler
Well, not all conflict is resolvable. And I think that that can come as a surprise to many, many people because many of us have been inculcated in this idea that we must be able to collaboratively resolve conflict when it arises. And what we know from now, the last 40 years of conflict literature, is that conflict naturally begets conflict. That is the nature of the beast. So, if that’s true, sometimes we may be able to use collaborative win-win principle negotiation methods in order to resolve it, but sometimes we won’t be able to. Sometimes that conflict will turn out to be what I called resolution resistant.

So, this book is all about what to do when you find yourself in recurring conflict, that is conflict that doesn’t go away no matter how many times you’ve tried to resolve it, and that’s what Optimal Outcomes is all about. It’s about how to free yourself in those kinds of situations.

Pete Mockaitis
Well, yeah, that sounds very helpful and important. And, yes, I’m thinking about Dr. John Gottman, I think that’s one of the main points he puts forth. This is the legendary, for listeners, relationship therapist who can predict divorce rates based on observing them. At first, it seems like a depressing thought, like, “Oh, many conflicts. You’re going to have the same argument until the day you die with your spouse.” Like, “Oh, wow, that’s a huge bummer.” But, in a way, it really kind of frees you, it’s like, my wife is always going to be super into safety as the top, top, top priority, maybe more than the average person, has a Master’s of Public Health.

And I want to be more into efficiency, optimality, productivity than the average person. And sometimes these things coincide beautifully with our vacuum robot, safety and efficiency, and sometimes they are not at all in accord, and that’s kind of just what we’re going to deal with until we die. But, knowing that, we’re able to sort of deal with these matters more healthfully and productively. So, tell us, what do we do when we find ourselves in that situation?

Jennifer Goldman-Wetzler
Yeah. Well, Pete, what you were just talking about reminds me of how I define an optimal outcome. The definition of an optimal outcome is one that both takes into account the greatest ideal future we can imagine in that situation and it also takes into account the reality of the situation that we’re facing. And I think, again, one of the places where we tend to get stuck is that we’ve been taught that the way to reach an optimal outcome, or the way to resolve conflict rather, is to imagine what we want and then offer other people options, and that we’re taking into account what they want. And the problem is sometimes they don’t know exactly what they want, and we don’t know exactly what we want because we’ve buried some of our interests and needs and desires inside of ourselves.

So, because of that, it can be very difficult sometimes to do that classic collaborative problem-solving. And we need to take into account the reality of who it is that we’re facing, the reality of the constraints of the situation, even the reality of who we ourselves are, just like you were starting to talk about. You sound like you have some self-awareness about you like things to be optimal and your wife is all about safety. But, for many of us, when we don’t have that self-awareness or we’re not willing to admit certain things about ourselves, it can be very difficult to take those realities into account. So, that is part of the definition of an optimal outcome, so it does take those realities into account.

Pete Mockaitis
Yeah. So, yeah, that’s really connecting. And I don’t know why you got me thinking about contractors right now in terms of, because sometimes I wonder, “Why is it hard to get them on the phone or to show up when they say they will?” And part of me wonders, like, “Maybe this is somehow optimal for them in a way that I’m not even aware of.” And so, what you’re surfacing here is that maybe they’re not even aware of it, and so awareness is a key foundational step. How do you recommend we get some more of that?

Jennifer Goldman-Wetzler
Well, I’ll give a name to what it is that you just mentioned. That is distinguishing between our ideal values and our shadow values. So, our ideal values are those things that we care about in life that we’re proud to say we care about, things like adventure, spirituality, customer first, collaboration. These are things that people tend to be proud of. That’s in contrast to things that we really care about in life that we’re not proud to admit that we care about. Tend to be things like everyone’s different, and I can talk about it more about how some people’s ideal values are actually other people’s shadow values, and vice versa.

But some classic shadow values, in my experience working with thousands of students and clients, is that things like status, recognition, power, financial security, competition. These are things, ease, right? So, in the case of, in the example that you just gave about a contractor who doesn’t call you back, they may open up a business because they want to be helpful to people and do great work and get paid for their work. And yet there may be things that they care about, like quality of life, ease of not having to keep track of phone numbers, or I don’t know, I’m not a contractor so I don’t know what those things are. But it can help us just to imagine what might be driving someone to do or not do what it is that we hope or want them to do.

And it’s just in guessing even what someone else’s shadow values might be, even if we’re wrong, just the act of wondering what their shadow values might be can help raise our empathy for them. And so, even if we’re wrong, it’s a very helpful exercise to do. The rewards are worth the risk of getting it wrong.

Pete Mockaitis
Yeah, that gets you thinking in terms of like, “Oh, maybe this poor roofer has just been nonstop and needs a break.” And I like that list of shadow values. This reminds me of, I don’t know, St. Augustine or someone who laid out sort of money, power, honor, fame, comfort, pleasure was kind of the framework, and it seems like there’s some rich overlap to what you’re describing, so this is really timeless stuff in the human condition. So, okay, that’s a great step is we become aware and think and maybe guess about some of the shadow values that others are having. And so, where do we go from there?

Jennifer Goldman-Wetzler
So, this is only one of eight practices that are part of the optimal-outcomes method. A nice place to begin, so I dove into this idea of looking at your values and other people’s values, and I should say looking at shadow values is not only about looking at other people or guessing at other people’s shadow values but, obviously, a really great thing to ask yourself is, “What might my own shadow values be that might be driving my behavior in this situation that I might not be proud of that I’ve pushed down?”

But doing that can really, really help free you from conflict, because once you realize what’s been driving your behavior, you have the power to either own up to it and stop doing it, or own up to it and say, “You know what, this is something I’m going to own, and I’m going to do it right out. So, if authority is important to me, and I wish it wasn’t, well, maybe I need to start being more direct, and that would help in this situation where I’m confusing people because I’m trying to be so collaborative but they don’t understand what it is that I want them to do.” So, that’s values.

But a great place to begin is about mapping out the conflict. So, so often, when we’re stuck in conflict, it can seem, on the face of it, like it’s just a very simple situation, “It’s between me and you, and you’re wrong, and I‘m right.” Right? And so, the thing is when we’re stuck in recurring conflict, it’s usually not that simple. If it were, we probably would’ve figured out how to get out of the situation a long time ago, or had resolved it a long time ago.

So, a great tool is to map it out. And, in fact, people can go, if they’re interested in an online, a very cool online mapping software, or even paper and pencil, you can go to OptimalOutcomesBook.com and download the paper and pencil template and also find this very cool online software conflict mapping tool. So, what you do is put down on your map as many, first of all, the people that are obviously involved in the situation. And then your job is to add as many people to your map as you can, people who are related in the situation that you hadn’t thought of before.

And I not only want you to put people on your map, but also any other events, timelines, background, history, anything that has impacted the situation, and also anything that might be impacted by the situation, so people that are impacted or could be impacted by. And, all of a sudden, your map starts to have some texture to it. And it’s amazing to me, it can sometimes take people less than five minutes to sketch out a map like this and, all of a sudden, the lightbulbs are going off and people realize levers for change on that map that they had never thought about before. It also really can help raise empathy for other people, and also compassion for yourself.

Pete Mockaitis
Yeah. Well, that sounds very exciting. So, could you maybe give us an example of someone, they got a conflict, and they hunker down and they make the map, and what sort of results for them?

Jennifer Goldman-Wetzler
Yeah. So, I have a client who is named Bob, I write about him in the book, and he was in a very long standing conflict with the head of sales of his organization. He’s the CEO of a startup tech company. And they had been growing by leaps and bounds, and the salary that he had been paying to his head of sales was completely out of whack, way above market rates, and he knew that he needed to lower it, but every time he tried to bring it up with Sally, the same thing happened. She would get very angry, they would start screaming at each other, and they would walk away and shut down for weeks, sometimes months. By the time he and I started working together, they had not talked to each other for a number of months, and that was a big problem because they needed to run the business together.

So, when I asked him to map out the situation, at first it was just very obvious to him, well, it’s him and Sally. But a few minutes later, when I asked him to put more people on the map, what he realized is, well, the executive team is involved and, particularly the CFO, who had been pressuring him to lower Sally’s compensation. And then he realized he had to put his own family and his background on the map because his ideas about his father and his brother, who were these entrepreneurs, who had taught him that entrepreneurial risk-taking was important. And, also, the way he grew up as an adult in the software field, that touted collaboration as the highest virtue, had made it very difficult for him to be authoritative with Sally and be direct about what he needed and wanted from her.

He also puts Sally’s family and background on the map, and noticed that he knew this from stories she had told him, but he realized she came from a poor family. Even though she made so much money now, she still might have fears about not having enough because of how she grew up. He also put their VC, venture capital investors on the map because they were also pressuring him to lower Sally’s compensation, and that influenced the situation.

So, all of a sudden, a situation that began with him thinking it was just him and Sally yelling at each other on a street corner, it turned out to be a little more complex, and that helped him see these levers for change of people that could potentially be helpful and ways he could have more helpful behavior.

Pete Mockaitis
Well, so then tell us, what’s the end to this story?

Jennifer Goldman-Wetzler
Yeah. Well, the ending to the story, I will let you find out in the book, but I will say that he was really able to see because he had been pointing his finger at her, saying, “Why is she so greedy? She’s so greedy. Why can’t she just understand that for the sake of the business she should take a cut? Her salary is just completely out of whack.” And noticing that she was just driven by fear from how she grew up helped him not forgive and forget the behavior that he didn’t like. He didn’t like that she had yelled at him and walked away from him, that was not appropriate behavior in his opinion, or mine. It didn’t make that go away, but it did help him calm down, and it did help him stop yelling back, and it did enable him to actually decide to have a conversation with her.

And the mapping also helped him realize he had beenpressured by the CFO and the VC investors to have this conversation with Sally, but he had gotten no guidance from them, he hadn’t asked them for help on how to have the conversation. So, mapping helped him do that, helped him go to them and ask for advice and help about how to do this. So, those are just a couple of examples of how his map helped him.

Pete Mockaitis
Okay. Lovely. Thank you. So, then you’ve got a term, a distinction between conflict freedom versus conflict resolution. Can you kind of help us get our arms around this distinction?

Jennifer Goldman-Wetzler
Yeah. Well, conflict resolution is what I’ve talked about before, which is thinking that a collaborative win-win style of negotiation is going to help you resolve a particular conflict. But so often it doesn’t work or it’s about safety, right? We could go back to the example you gave about you and your wife. You’re talking about things that are values that are near and dear to your heart. If someone cares deeply about safety, or someone, I’ve worked with plenty of executives who complain about their CEO who cares so much about financial security that that CEO can’t be innovative or can’t put resources in the places that the person thinks they need to in order to allow the organization to grow and innovate because they’re so worried about quarterly financial reports.

And so, whenever we care about things that are deeply ingrained in us from a values perspective, we’re not always going to be able to resolve that conflict and tie it up neatly in a bow. Instead, our job is to free ourselves from that conflict loop. I call it a conflict loop instead. So, the way the conflict loop works, the way we get stuck in it, is that we have conflict habits. There are actually four conflict habits that I’ve identified in the book. And our conflict habits get locked in patterns, in a pattern, with someone else’s conflict habit, or another group’s conflict habit, and those conflict habits make it very difficult to break free from that cycle. So, it’s just a conflict cycle that goes around and around and around.

And so, the goal there is not to resolve anything, sometimes there’s not even anything necessarily really to resolve when we look at that. A classic conflict pattern is blame-blame. So, we blame someone, right? So, that’s what Bob and Sally were stuck in, they were blaming each other. He would tell her he needed to lower her compensation, she would yell back that that wasn’t going to be possible, and then they would just call each other names and how horrible they each were to each other, and they were blaming each other.

So, when you’re stuck in a blame-blame conflict pattern, it can be very difficult to resolve, but you can take what I call pattern-breaking action to free yourself from that situation. And the beauty of freeing yourself from a locked pattern is that it doesn’t take anyone else’s cooperation. You don’t need anyone else’s help or cooperation in order to free yourself from that conflict loop. All you need are your own resources which is the practices in the optimal outcomes method, looking at what your own shadow values are, looking at what other people’s shadow values are, mapping out the situation, using your emotions in your favor, not taking other people’s emotions on as if they’re your own, but keeping those separate from you. And there’s a whole bunch of work you can do around that.

Designing a pattern-breaking path, so not just taking one pattern-breaking action but actually having your actions build on one another over time, because it probably wasn’t one action that got you stuck in this. It’s been going on for a while so it’s not only one action that’s going to get you out. It’s going to be a whole series of simple but surprisingly different pattern-breaking actions that will get you out.

Pete Mockaitis
Well, can you please give us an example? So, some pattern-breaking actions that come together in a pattern-breaking path. What are some examples for how that comes to life?

Jennifer Goldman-Wetzler
Well, the beauty of a pattern-breaking action is that it’s basically anything that’s not what you’ve already been doing. So, typically, when we get stuck in conflict is because we’re doing the same habitual conflict habit over and over and over again, and expecting a different result. So, in the case of Bob and Sally, they’ve been blaming each other. In other cases, you might be blaming someone, and they’re running away and hiding from you. They’re not engaging. They’re shutting down. Or you may be relentlessly trying to collaborate with somebody and they are shut down, they are not cooperating with you, and you’re just offering them option after option, spinning your wheels, wasting your time, wasting energy, focus, money.

So, a pattern-breaking action is anything that’s different from what you’ve been doing. And, obviously, that’s different in any situation, in all different kinds of situation depending on what you’ve been doing. But the beauty of it is that there’s like a bazillion different possibilities, right? So, I also like to say you want your pattern-breaking action to be, ideally, something constructive, so I would not advise, if you’ve been blaming someone else, then like go blame yourself instead. No, that’s not what I’m talking about. But what I am talking about is it could be that if you’ve been blaming, blaming, blaming, and you take a pause, notice the pattern that you’re stuck in, and decide that you want to do something that’s pattern-breaking, something different, it could be you decide to kind of hang back for a little while and not do anything at all.

Sometimes just pausing is a pattern-breaking intervention, in fact. And if people want to find out what their conflict habit is, you can also go online at OptimalOutcomesBook.com/assessment and you can find the conflict habit assessment. It takes like seven minutes. It’s totally free. And so then, you could also ask your friends and colleagues to take the assessment as well. And once you know your conflict habit, and other people know theirs, you can figure out what is the pattern we’ve gotten stuck in, and then you have each some ideas about other things you could do instead.

Pete Mockaitis
And so, you could take the assessment to learn what specifically is yours in the habit. Can you give us sort of the menu, the rundown of options, in terms of, “These are the conflict habits.” So, one of them is blaming. And what are the others?

Jennifer Goldman-Wetzler
One of them is blame others, one of them is blame yourself, blame and shame yourself. So, some of us gets stuck in that negative self-talk cycle. One of them is shutdown, so we avoid to the point of letting the conflict brew until it boils over and then we have a crisis on our hands. And then the final one is relentlessly collaborate, so we will collaborate even when other people refuse to cooperate with us. So, we’re offering option after option, and people are not working with us.

Pete Mockaitis
Oh, and that’s the whole menu right there?

Jennifer Goldman-Wetzler
That’s just four, yeah. So, there’s 16 different patterns that can emerge out of those four.

Pete Mockaitis
Yeah, intriguing. Okay. And so then, when you say just a pattern-breaking, it’s just a matter of doing anything other than that, so it could be one of the other three. Or is there something completely different beyond those?

Jennifer Goldman-Wetzler
Definitely, things different beyond those, but it’s very idiosyncratic so I can’t say to you, “Here’s the thing that you must do to break the pattern,” because we need to know what it is that you’re dealing with. So, in Bob and Sally’s case where they had been blaming each other, Bob had to take a step back and take a break. And then pattern-breaking action for him was that, instead of surprising Sally as they walked out of the client lunch with telling her that he needed to talk to her about her compensation package, which is what he had done previously, he realized that he could do better by giving her some advanced notice and asking her when was good for her to talk.

So, he did a bunch of different things that were pattern-breaking. Like I said, he kind of created this pattern-breaking path. So, one of the things he did was not surprise her at the last minute, asked her in advance to talk, emailed her, asked her if it would be helpful for him to send her in advance a proposal for what the package would look like. He also asked her if they could just talk about their relationship first. So, they ended up talking about their relationship, their working relationship, even before they then had the conversation about the compensation package itself, because he realized that their relationship had become so damaged that that actually itself needed to be talked about. So, once you start asking yourself, “What else could I do?” well, there’s lots and lots of ideas in the book about how to do that.

Pete Mockaitis
Yes. And I guess I’m also thinking about. I found that a lot of times breakthroughs happen when you stop and really, I guess, empathize, walk in their shoes, proverbially, and get a sense of, “You know what, she’s probably feeling this because this, this, this, this, this.” And it’s amazing, like, occasionally, it’s sort of like I think maybe we just sort of assume we know and understand, “We all understand what everybody’s thinking.” But then when you actually sort of stop and articulate, it’s like, “Well, hey, let me make sure I understand where you’re coming from.” They say, “Hey, he’s really concerned about this because of these matters, and then it really feels like this under these circumstances.” That can often just be just so powerful for folks with just that empathy, it’s like, “Well, yes, that is exactly how I feel and it feels great that you understand me.” And it’s sort of like we’re already getting somewhere now.

Jennifer Goldman-Wetzler
Yeah, and that can happen and sometimes it doesn’t. Sometimes no matter what you do, you could be the most empathetic person on the face of the earth, and the other person is not interested. And so, sometimes the key is to be able to cut your losses and notice for yourself. So, the last chapter in the book is all about helping people stop living in fantasyland. So, if you’re fantasizing about that kind of conversation happening, and no matter what you’ve done, no matter how much empathy you have for someone, they’re still like a blank wall and just not responding to it, it may be that that relationship is one that’s not going to happen the way that you thought it was. And that’s part of what it means to take into account the reality of who the other person is and what they need and want.

And so, there’s exercises in that last chapter that help you determine whether you should continue to go for that ideal future that you might’ve imagined, or whether walking away is going to be less costly to you and more beneficial to you than you had originally thought. So, it’s basically asking you to do a cost-benefit analysis of what it looks like to stay stuck in conflict, what it might look like to walk away from the relationship or the situation completely, and also what it might look like to go for, to pursue that ideal future that you’ve imagined.

And this can be very striking for many people. So, I’ve seen people who thought that they were just going to keep on trying to have empathy and trying to collaborate with someone else, and then they did that practice of choosing an optimal outcome, and realized that the cost that they thought they would have to pay for walking away from that relationship, whether it was a business relationship, or a personal relationship, or some combination of both, that the costs were actually not as high as they had originally thought. And I’ve seen the opposite happen too. People who thought that the costs of staying put were so high that it was going to make more sense for them to walk away, realized, “Oh, my gosh, the costs for me walking away from my mother, from my best friend, from my co-founder, are so high, that’s a fantasy.”

I’ve worked with many clients who loved to fantasize about walking away, but all that does is it kind of acts like a soothing mechanism, because it makes it that you don’t have to deal with what actually is going on in the moment for you, but all it does is just distract you from what it is that you do have to deal with. And if you are going to stay, let’s stop fantasizing about walking away and really focus on, “What are some pattern-breaking actions I can take in this situation today?”

Pete Mockaitis
Well, this is nice. We’ve covered a nice little lineup of some of your eight groundbreaking practices.
Okay, sure thing. Well, now, could you give us a favorite quote, something you find inspiring?

Jennifer Goldman-Wetzler
Yes, my mentor Dr. Morton Deutsch, who is the father of conflict resolution, always used to tell me, “Prevention is the best medicine,” and I believe he’s right. I’ve quoted him in the book as well. And there are so many parts of life that that quote is relevant to.

Pete Mockaitis
Oh, thank you. And how about a favorite study or experiment or bit of research?

Jennifer Goldman-Wetzler
I have many favorite experiments and research, one of them that I talk about in the book is about Dr. Wendy Wood’s research on habits. And what she basically says is, the best way to form new habits is to replace an old habit that you’re not happy with, with a new one. So, rather than trying to get rid of one that’s not working for you, just replace it with something new. And she has a new book out on that as well, and I encourage people to go study her work. She’s really a powerhouse and has done just amazing work in the habits area.

Pete Mockaitis
Oh, thank you. So, that’s a great study and also a book. Any other favorite books?

Jennifer Goldman-Wetzler
Yes. A friend of mine named Priya Parker wrote a book a couple of years ago called The Art of Gathering and it is just a wonderful book. It’s easy to read, full of great stories, and it’s all about how to gather people together from the informal wedding shower to the formal business meeting, and everything in between.

Pete Mockaitis
And how about a favorite tool, something you use to be more awesome at your job?

Jennifer Goldman-Wetzler
Pausing. Pausing. It’s a very low-tech tool. I know there are tons of apps out there, Calm and Insight Timer that people love, but I will say just being quiet. It doesn’t take much. I like to just sit quietly every once in a while, and just breathe. And I don’t do it as often as I might like or benefit from but when I do, it is just super helpful to just sit and be quiet.

Pete Mockaitis
All right. And is there a particular nugget you share that really seems to connect and resonate with folks, they quote it back to you often?

Jennifer Goldman-Wetzler
Well, it’s something my father told me that I say to a lot of people, “Everything in moderation, and moderation in everything.”

Pete Mockaitis
Okay. And if folks want to learn more or get in touch, where would you point them?

Jennifer Goldman-Wetzler
OptimalOutcomesBook.com is a great place to begin.

Pete Mockaitis
And do you have a final challenge or call to action for folks looking to be awesome at their jobs?

Jennifer Goldman-Wetzler
Yes. When you find yourself stuck in recurring conflict, do something different, something pattern-breaking.

Pete Mockaitis
All right. Well, Jen, thank you for this. And best of luck with the book and all your adventures.

Jennifer Goldman-Wetzler
Thank you so much, Pete. You as well. Great to talk with you.

549: Who Gets Raises and Promotions? Rick Gillis Reveals the Metric that Predicts our Fate

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Rick Gillis says: "Your work does not speak for itself. You do."

Rick Gillis shares how knowing and improving your “quotient” can help you get raises and promotions at work.

You’ll Learn:

  1. The factor that determines your compensation at work
  2. How to speak up for your work to your boss
  3. The perfect time to bring up your accomplishments

About Rick:

Rick Gillis is a speaker, author, and personal career advisor. He has spent over two decades writing books and sharing techniques to manage and maximize careers across the country. He is the founder of the Richard Gillis Company, LLC which provides training and career coaching to help job seekers land the best possible position at the highest possible pay.

Rick has appeared on several media outlets like Forbes.com, NPR, and the Wall Street Journal. Rick and his wife, Mary, live in Texas where he spends his free time riding along the Texas gulf coast on his Harley or in his music room and art studio.

Items Mentioned in the Show

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Rick Gillis Interview Transcript

Pete Mockaitis
Rick, thanks for joining us here on the How to be Awesome at Your Job podcast.

Rick Gillis
You bet, Pete. Thank you very much for having me.

Pete Mockaitis
Oh, I’m excited to dig into your wisdom. But, first, I think we need to hear a little about you and Harley Davidson motorcycles. What’s the story here?

Rick Gillis
Well, I’ll tell you what, it’s funny, I had a friend of mine one time say, “Gillis, I didn’t know you’re a biker,” and I said, “I’m not a biker. I just ride a bike.” And I do. I have a Harley, it’s a 2006 model, I’ve been riding for years, and I live south of Houston so it’s literally 54-mile straight shot to the Gold Coast, so that’s kind of my riding. I don’t do traffic ridings. Saturday, Sundays, get out on the highway, that’s what I do.

Pete Mockaitis
Well, that sounds fun, and so you don’t have any family that tries to curtail those adventures. I don’t think my wife would go for that if I told her, “Yeah, I’m learning to Harley now.”

Rick Gillis
Now, that I’m old enough, I got back into it. I gave up riding motorcycles when, I don’t even remember now, 17, 18 after dropping two or three of them.

Pete Mockaitis
Oh, man.

Rick Gillis
And I’ve only had this bike for, I don’t know, 10, 12 years. Like I said, I ride by myself, I go down two-lane highways, very little traffic, yeah, I’m not tough.

Pete Mockaitis
Well, you’ll get no judgment from me. My wife is a safety enthusiast and motorcycles are probably not in my cards.

Rick Gillis
No, I appreciate that. I really do. They’re dangerous, there’s no question, because I have to drive for everybody when I’m on the road.

Pete Mockaitis
Yeah. All right. Well, so good to know to get a little background there. You’ve invented an interesting concept called the quotient. Can you, first of all, define that and tell us why professionals might care about it?

Rick Gillis
Well, I’ll tell you what, now we’re not sharing this with anybody, right? This is just between you and me.

Pete Mockaitis
I make no representations of that.

Rick Gillis
Let me tell you what, Pete, the quotient was an epiphany I had literally just over two years ago, and I knew it was developing, and it came out of working with job search, job seekers for so long. I did it for 20 some odd years. And I was literally riding my bicycle, not my bike, in the neighborhood and, all of a sudden, it struck me what this was. And let me tell you, like I said, just between you and me, this quotient thing is really a very rich new powerful concept and I maintain it’s going to be able to resolve the pay disparity issue.

And what it is, it’s kind of like taking from a salesperson’s point of view, which I am and have been for many years, you know, a salesperson knows that if we don’t sell something this month, we don’t have a job next month, and that’s just the way, that’s your mindset. I would like the person who gets a paycheck to start thinking like that because a person who gets a paycheck on Friday, takes off the weekend, comes back on Monday, gets back into the mental mindset of being at work, of producing value. The quotient is exactly this. I take your work contribution, which I spend a lot of time in the book telling the non-salesperson how to determine the value of their contribution to their employer.

Pete Mockaitis
In dollars.

Rick Gillis
In dollars.

Pete Mockaitis
That’s the unit we’re working with, or Euro as the case maybe to our European friends listening.

Rick Gillis
Right, exactly. It could be any. But you take the value of your contribution to your employer and you divide that by your base pay. Now, note, it’s not your net, it’s your base pay. And so, what happens, that creates the quotient. So, let’s say, for example, you work for me, and whether you have read the book and have figured out how to do this, or if I’m doing it for you, or mutually, we determined that you have raised, you generated $250,000 in value this year for my company, and I pay you $50,000 a year. So, $250,000 divided by 50,000, your quotient equals 5, which means that you’re a good employee, you generated five times more than I paid you so there’s value there.

But, now, let’s go a little further, because, let’s say I’m a male working with an equally-skilled female, my quotient this year was a 9, hers is like, say, a 23, but I get the promotion and the raise and the bonus. Is that a legal standard? It’s been suggested to me by some very knowledgeable people that it could be a legal standard. And when you consider the possibilities, and I got to tell you, Pete, this is an epiphany I had the fourth draft of the book, I’m about three months away from finishing the book, and I had been writing with the mindset all along of equal pay for equal work.

I even had to look up where that came from, and that’s 1963, President John F. Kennedy signed the Equal Pay Act, so I didn’t know where it had come from. And, all of a sudden, it struck me that’s not what this is about. This is not about equal pay for equal work because that’s really hard to define. How many people do exactly the same thing? But if we instead say that this is the proper pay for the best performance, that takes discrimination out of the discussion. All of a sudden, it doesn’t matter, male, female, black, white, Hispanic, old, young, any reason for discrimination goes out the window when you pay the best person who performs the best. That’s really what the quotient is.

Pete Mockaitis
Well, I mean, that sounds like a beautiful vision and world there in which compensation is indeed proportionate to your contribution. That sounds fair and equitable and just. And for those who are awesome at their jobs and inspired to be more awesome at their jobs, it sounds tasty and lucrative, so we like that. Thank you.

Rick Gillis
Well, I appreciate that, and I say that because this is the motivated individual that’s going to use this. The person that’s really okay with things or has no motivation, see, I’ve actually got three levels of quotient. One is the quotient of 1, and that is when, let’s say, I’m paying you $35,000 a year to be a delivery driver for me, and you do a very good job. I’m perfectly happy. But a business cannot operate on quotients of 1. We need quotients of +5, +35, +3,000, it depends, so there’s a lot of different thought that goes into this, and there’s also the quotient of less than 1, which can be bad but it depends also on the person.

Pete Mockaitis
Yeah. Well, there’s a lot here. And I think just conceptually thinking about things in this way is helpful already in terms of, okay, I think in sales, or fundraising if you’re a director for development for nonprofit, then it’s pretty clear. It’s like, “Okay, I see. I know what they pay me, and I know what I brought in, and I can see that I am very profitable, or I’m very not profitable for my organization, and that can indicate I’m likely to be promoted, or get a raise, or to be exited in the near future.”

So, now the game gets a lot more intricate when your value or contribution is not so readily quantified in terms of dollar sales brought in. So, can you help us, maybe give us some examples of how do I think through that in terms of, “I am a program manager, or I am an engineer, how do I kind of get after what my contribution is in currency?”

Rick Gillis
Well, fundamentally, first of all, there’s two ways that you bring value to an organization. You either make money or you save the organization money. That’s it right there. So, most people in a company do not deliver revenue, they actually save money, so it’s a matter of being efficient.
The fact is efficiencies, saving of money, doing your job better than somebody else, and I have, throughout the book, I have 14 Q studies and, of course, that came from “The Quotient,” so I call them Q studies, and they are real people I’ve worked with over the many years, helping them get ahead, because I found a lot of people could tell me what they had done. They could not tell me what that translated to in value. And, candidly, this was a lot of 50+ year old men who had crazy good jobs, who I think got lazy, complacent, and, all of a sudden, they weren’t realizing they were not generating the appropriate value for their payrate, and they got pink slips.

And so, when I talked to them, almost across the board, I would find that they could tell me what they did, they could tell me what that value was, and I actually have a chapter in the book called The Earning Curve where your earnings continue to go higher, your personal earnings, tend to go up and up and up, but the value you’re bringing to the company starts crossing down. And when those two axes cross each other, you’re the problem now because you’re no longer developing or generating the value you should be generating.

So, in my case studies, I have several examples of people from an executive assistant to a bank VP, I even have my own personal story in the book, which I didn’t even realize…by the way, I don’t have anybody’s real name in there so if anybody hears this and goes to the book, when you read Brad’s story, that’s actually Rick, me, so I changed everybody’s name in the book. But I did a deal when I was in the real estate business, and this was about 10 years after the fact that I remembered this. I had created a commercial-lease document that saved my company some $26 odd million.

Pete Mockaitis
Well, there you go.

Rick Gillis
Yeah, and that was a big deal. Now, I was in the business of managing properties, selling space, preparing that space, build out, maintaining the grounds, so I was a general manager. I had 14 buildings on 20 acres that I was responsible for. And I’ll tell you the story and I’ll keep it as brief as I can. One morning I got served by a Texas sheriff, And I got sued by a realtor that said that I owed him $8,000 on a deal that I said, “No, I did the renewal. You’re not entitled.” So, I went looking into the original lease file that my predecessor had done, and I saw that, by damn, they had agreed in handwriting that I had missed it, it was my mistake, that he would be paid on all lease renewals.

So, I called my boss and I said, “Send me a cheque for $8,000.” We had 26 office parks across the nation so it was a big company. He sends me a cheque for $8,000, I paid it, I paid the realtor, I went back to the office, and I told my secretary, “Gaye, you and I are going to go through every lease, and we’re going to put a cover sheet, and we’re going to note any anomalies that happened in these leases so this will never happen again.”

A few months later, my boss comes to town and he’s looking through some of the leases, and he goes, “What’s this cover sheet?” Well, long story short, I had solved a problem that I didn’t even realize was national. He took it back to corporate, and we had 26 office parks, so about three months later I had 25 general managers really upset with me because they had to do what I had done, but I saved the company an enormous amount of money in legal.

Now, I maintain, Pete, and I know this might be a little la, la, but I maintain that people regularly do good things above and beyond their regular daily job that they’re not aware of, they don’t watch out for this, I missed my own and I was a sales guy. So, ten years later, I was working with a client on the phone when, all of a sudden, I remembered this. I went to my whiteboard, wrote it down, and now it’s a story in the book.

Pete Mockaitis
Certainly. So, that is a fine example. So, that was outside your daily kind of your day job in terms of like your day-to-day normal recurring responsibilities, that you found something, you got proactive to make sure it didn’t happen again. And then when you shared that and it gets extrapolated over broader-based properties, it really adds up in terms of we would pay lawyers or whomever this much money to make that happen. So, that’s interesting. There’s a specific source of savings there, like legal fees not spent, that you can determine based on, I guess if you know, just how many hours legal work versus their hourly rate.

Rick Gillis
Well, I’ll tell you what, that’s an excellent point because, the fact is, the company has been out of business. It was acquired many, many years ago, so I didn’t have a source to go back and get hard numbers. So, one of the things that I’ve developed along this line is what I call the defensible statement. And that is if you walk in and tell me, let’s say I’m hiring a sales guy, and you tell me you sold a billion dollars or something last year, you better be able to prove it, you better have it in writing. But if you came to me and I’m used to doing million-dollar deals, half million-dollar deals, and you tell me that last year you did a million dollars, I’ll take that, I’ll accept it, we’ll question it, we’ll talk about it, give me some head up.

So, the defensible statement is a really important component to this. I did not have any hard numbers, it was well over ten years after the fact, I went and took, which if I was interviewing with a commercial real estate firm, and I told them that I saved 1% of my gross revenue annually by not having to spend these thousands of dollars in covering mistakes, and I had a little bit more information for this. I had the smallest office park in El Paso of the entire nation. I had 400,000 net rentable square feet. Some of the bigger guys in Miami, Virginia, Richmond, Virginia, and Atlanta, they had like two million square feet.

So, using my numbers and taking 1% of my gross revenue and multiplying that out, that comes to like $26,000 based on what I was supposed to be generating gross revenue at that time. And then I multiplied that out times 26 office parks, keeping in mind that I used my office park, which was the smallest venue, and took that across. My point is it’s very defensible, so you got be careful, you got to keep that in mind.

Pete Mockaitis
You’re super conservative there. It’s like at least this amount but probably much more.

Rick Gillis
But I’m comfortable saying more, yes.

Pete Mockaitis
If I may, how did we arrive at the 1%?

Rick Gillis
I figured 1%, at the time I was quoting $12 a square foot per space, I had 400,000 net rentable, so $12 times…it was $4,800,000 times 1%, I came down to where I was about $26,000, I think, I saved annually, or something. And then I multiplied that out times the 26 office parks because it was of benefit to the entire organization. So, that’s exactly how I extracted that number.

But let me give you another, for instance, because this is not all about just big-money players. One of the stories in “The Quotient” is a woman, a friend of mine, who is an executive assistant. A matter of fact, right now, she’s making about $84,000-$86,000 a year, and we were talking recently, and I told her, I said, “Certainly, there’s somewhere you have saved some money for your organization.” I mean, she’s the executive assistant to the CEO so right there she’s worth more than just another administrative assistant.

But she told me that one day she had been assigned to review some contracts, and she found $77,000 of unclaimed discounts that the person who was doing the job was supposed to have been doing, had not claimed it. This was one eight-hour day she achieved the $77,000 gain. And I told her, I said, “I know you’re not being paid $77,000 a month,” because, like I said, she’s making $86,000 a year. So, in that one instant, she had a value, a savings, that she could share that was above and beyond, and people do this stuff all the time. I really believe that, Pete. I really do.

Pete Mockaitis
Certainly, yeah. Okay. So, you get after your value by any number of things, think about that, the money that you brought in or the money that you saved, and then you might need a little bit of help with Excel or Google Sheets to say, “Hey, what’s the value and what’s the parameter, and then why did I make…why did I say that’s the number? And here’s why it’s conservative.” So, it might just be three to ten lines of Excel, but that’s fine, to sort of make that defensible statement.

So, okay, we’re getting out the contribution side of things and your payment you know. So, then these numbers, sometimes you said 5, 35, 3,000, I mean, boy, what’s a good quotient? And what level of quotient makes you say, “Hey, I can probably get a raise now”?

Rick Gillis
I’ll tell you, that’s exactly based on, entirely based on what you do. Like I said, the quotient of equal 1, a Q1 is the person who’s doing exactly what they’re supposed to be doing but a company can’t work on that. If somebody is hiring a coder, and they’re going to try to take on, let’s just say Facebook, their quotient might be a thousand to one, “Let’s pay this person $350,000, bonus, etc., options.” That person needs to deliver, at minimum, $3.5 million annually to be a quotient of 1, if you want to baseline all the positions in your company, which you can do if you want to get everybody down to a Q of 1. In other words, that is what that person would be required to deliver before they’d even can see a bonus or something like that. So, there’s lots of different ways to figure this.

And let me tell you another thing too, Pete, that’s really pretty fascinating. I’m not an MBA, I’m not a Ph.D., this comes from just 22 years of working with people and seeing these different kinds of values developing. I really had to stop and think about this from the employee’s point of view, from a manager’s point of view, from a regional’s point of view, see, because you can use the quotient across branch, division, department, you can use it in all. It works all across these different levels. And I’m not saying the controllers don’t already know this stuff. I do understand that. But I think there’s a need here for two things to happen.

Number one, the worker to embrace this and recognize what they’re doing, and also for the employer to understand that if they get somebody who’s more engaged and owns this, they’re going to be a better, more motivated, more engaged worker, and this thing is a double-edged sword. It also cuts the other way, and you get to find out the people who really aren’t carrying their weight because, too often, especially in the big companies, they’re working with a pool of people and it’s kind of like, “Let’s don’t rock the boat, let’s don’t shake things up.”

But, now, what is important to this discussion is that the individual is responsible for pointing out their wins. A company is not responsible. Your company is not required to point out when you have a really big win. For instance, when I discovered and saved my real estate company all that money, it was not their responsibility. Their responsibility to me was to pay me fairly, pay me what we agreed on, pay my, etc. my healthcare, whatever. But that’s it. If I do anything extraordinary, good for the company. That’s to their benefit.

But when I think back on this, and I saved the company millions of dollars, it would’ve been neat, it would’ve been smarter of me had I been able to go to annual review, annual end of your…and say, “Look, I did this. I’m worth a bonus. I’m worth a promotion. I’m worth something, a raise,” and that’s where I think the motivated individual who goes to their supervisor, and/or supervisors, I always strongly recommend you don’t just share this information with your boss but your boss’ boss, and her boss as well, because everybody should know you are an up-and-comer, you’re motivated, you’re engaged.

Pete Mockaitis
Certainly. So, you get some great achievements and hopefully they amount to your whole bunch of value and contribution. And so then, part of the game is quantifying that, capturing that, communicating that. And then, yeah, what are some of the best practices for sharing your accomplishments in a way that is not obnoxious and can get you some benefits?

Rick Gillis
Good question. Let me tell you what. Let’s face it, there’s a lot of people who are not comfortable with this. We’re taught not to brag, and I appreciate that. There’s no question, that’s really, really important. But bragging and boasting is not the same as informing and sharing those with you. Let’s say, for instance, you hop in the elevator and it’s you and the CEO, and that does happen to some people. What are you going to say? You have an opportunity to express your value to somebody who can really make an impact on your life, and you say, “Hey, grand weather we’re having today, isn’t it?” Well, you’ve just lost an opportunity.

So, one of the things that I’m about, and I do promote this in the book, you have to be continuously working these, you have to be continuously thinking these things, and you should always have one ready, I’m not joking, rehearsal ready, that you can say, “Hey, Mr. CEO, it’s really nice to see you. How are you today?” “Great. What’s going on?” “Well, I’d like you to know about this commercial-lease document I just created that saved the company, I think, on the order of several million dollars.” When you tell somebody that, first of all, they have been in your place, they do appreciate it. I maintain strongly that supervision, your immediate boss maybe not so much, but above and beyond that, really likes to hear wins, and that’s a fair thing that you can have something available that you could share with the CEO or somebody else.

Once again, I’m going to go back to the same place where this is for the motivated individual who’s going to study this, watch it, because one of the things that is going on, and as a salesperson, a sales professional is always doing this and always thinking about, “If I close this deal, if I close that deal, if I close this other deal, these create different revenue  streams, and etc.” But the person who is working the regular job, who’s only focused on that one thing, does other things and they really need to be thinking about the possibility that there could be quotients for their regular work, and there could be more than one or two or three of those, plus there can be those quotients for any value they create above and beyond what is requested of them to do.

Pete Mockaitis
Yes. Well, maybe can you share with us one of your Q studies, sort of a fun story of a professional who used this concept, ran with it, and found themselves with a whole lot more money as a result?

Rick Gillis
So, the Q studies come out of real people I have worked with in the past who landed very good jobs as a result of my helping them in their job search, but I went back to them, after the fact, in other words, I went through my files and I found, “Here’s Jeff, and here’s Hannah, and here’s whoever,” and I called them up and I said, “Hey, I’d like to use your story in this new book. Can you tell me what you were making at that time when you achieved this?”

See, where this came from, Pete, the secret sauce in my working with job seekers is, it was not negotiable, I required them to put together an accomplishments inventory. This requirement of providing me eight to ten very best accomplishments, I didn’t need to know the who, what, where, when, why and how behind each one, and so these people would prepare me 8, 10, 12, 15 pages of these things.

And I remember one chemical engineer, this woman I worked with, she handed me 18 pages, handwritten, of accomplishments, and she handed me this whole pile, and I glanced at the first one, I handed it to her, and I glanced at the next one, I handed it to her, and she got upset with me, she said, “You mean you’re not going to read those?” And I said, “No, that wasn’t for me. I don’t even speak chemical engineering. That was for you to prepare you for the interview, and now we have the information, the ammunition to create your resume, now we’re ready to set you out and get you working.”

And so, I did this with everybody, and anybody would not accept that they had to put together an accomplishments inventory for me, I didn’t accept them as a client. So, that has always been my secret sauce, and when these people get to interview, they’re absolutely ready. So, I went back and I took some of those accomplishment statements from different people, and I called them up and I said, “What were you making at that time?” And I was able to, and once again, this is really important to the Q studies, I had to use workarounds.

For instance, I had to use the dollar amount for this one guy who’s a construction supervisor, where he was able to build a bridge. It was a gigantic piece of cement they had laid for a construction, and he found that he was losing, literally at the rate of five to seven minutes a day, some 1200 workers having to walk all around this big monolith they had built.

So, he took it upon himself to build a bridge. He just had a bunch of aluminum and steel, and he fabricated a bridge that took these people straight across instead of going around, saved five, six, seven minutes, but these people were making on the order of $40+ an hour. And when you multiply that $40 times take out to get the minute rate, multiply that times how many dollars are out there or how many people were working, and all of a sudden, this guy was starting to save some real money.

And, at the time, he was making, I don’t remember exactly right now, but he was making on the order of $48 to $50 an hour, so I can take his hourly rate and see that he saved all these minutes when we divide that by 60 minutes, we get lots of hours, and then we’re able to divide that by that total by what he was making, and we do come up with good, reasonable, defensible quotient for my client.

Pete Mockaitis
Right. And so then, he got a promotion or a raise as a result of this?

Rick Gillis
Actually, he left and he’s now reporting to the CEO with one of the biggest energy…one of the biggest electric-generating companies in the United States. And, yeah, I’ll tell you what, I’m going to slap myself on the back for this one because he actually took my accomplishments kind of concept and he’s now the director of best practices for this very, very large utility in the United States. And so, he took what I showed him, what I taught him, and took it and made it even better for himself. So, yeah, I’m really proud of him.

Pete Mockaitis
Very cool. Okay. So, then a real part of that is making sure that when you do that great stuff, you take a moment to capture it and quantify it. And then when it comes to conveying it, do you have any pro tips and do’s and don’ts for asking for some of that value you created to come back to you?

Rick Gillis
Yeah, and I tell you what, I think this really comes down to the annual performance review. I think one of the things that I want for performance reviews to become, and, by the way, I do have a model for a quotient-based performance review in the book.

Pete Mockaitis
Yeah, so once you’ve identified this value, how do you go and ask for it?

Rick Gillis
The fact is I think that annual reviews should be more objective than subjective. What that does, that puts the onus on the worker, the person who’s reporting, to walk in with this information and be able to share it and show it. And so, once again, I go back to the place where this has to be the motivated worker.

And, by the way, this keeping, having a source of keeping your accomplishments in front of you, it’s called your calendar. I can go back and look in my daily calendar, and go back several months, and I can see where I started working with X client who is now a senior vice president at such and such. And those are a value to me because I don’t have a hard dollar value because I don’t claim their salary. They pay me but I am very proud of the fact that that person back in the workforce is now buying a home and buying cars and sending their kids to school and spending that income to the good of the economy.

The annual performance review is when you need to go in and it needs to be a two-way conversation as opposed to the set your goals at the beginning of the year, review your goals in the middle of the year, and at the end of the year, take what your boss is going to tell you. One of the things that I say is do not assume that your immediate supervisor knows exactly what you do. I consider that tragic career mistake number one, and that’s also why I say don’t ever be afraid or ashamed of sharing your wins with your immediate supervisor and her boss and his boss and her boss, because up and down the line protects you in the sense that, number one, your boss may be very, very subjective and really run you into the ground and maybe you’re that quiet person that’s not good at defending themselves. Or the other side of that is when his or her supervisors know about you, and they turn in a subpar appraisal, maybe they’re going to modify some things
So, yes, there’s a little bit of politics in here but, mostly, I think it’s about being appropriate, and that’s a very big term for me, is being appropriate, no bragging, no boasting. And for the person who does not know how to do this, you can practice with your friends, practice with your coworkers. And let me say something about coworkers while I’m there. This is not about team. This is about I, me, and mine. This is always about yourself, because if you were part of a team, just like you would in a resume, bring out what your contribution was to the group. Don’t focus on what the big win was for the team.

Pete Mockaitis
And I like the example you made with the CEO in the elevator. It’s less like, “Oh, aren’t I amazing because of all of these things?” It’s just sort of like when that question naturally comes up, “Hey, what have you been up to? What have you been working on? What’s new?” you can tell them, and you maybe have some enthusiasm, and not so much that you’re awesome, but rather that this was kind of exciting that you captured an opportunity. It’s like, “Well, one interesting thing was, in reviewing our leases, we discovered this which can result in just about $26 million.” And then they go, “Oh, cool. Duly noted.”

Rick Gillis
You know, Pete, what I call this is the what and wow. I have a formula that is when you give me a list of your accomplishments, and I take one of them, I reduce each accomplishment down to “Responsible for blank that resulted in blank” and I call that the what and the wow, “Responsible for what that resulted in wow.” So, for instance, for me to tell you, to go back to my real estate win, is to say, “I was responsible for creating a commercial-lease document that resulted in the savings of the company of about $26 million.” The person hearing this, in their head they’re going, “Whoa! Wow!”

So, what they really are thinking though is, “If you did that for them, can you do that for me?” And that’s when you need to be able to discuss the who, what, where, when, how and why because they’re going to ask you, “How did you do that?” And when somebody says, “How did you do that?” they really don’t care about so much how you did it, but, “Can you do it for me?” And that also applies within companies, within branches, within departments within companies, hey, people are rating employees all the time within companies. So, they’re responsible for what that resulted in wow, that is a formula, and that’s very apparent in the quotient.

Pete Mockaitis
Okay. Well, tell me, Rick, anything else you want to make sure to mention before we shift gears and hear about some of your favorite things?

Rick Gillis
No. I’ll tell you what, that’s funny you say that because, and I hold on, and I even did homework for you, buddy.

Pete Mockaitis
Oh, well, thank you. So, tell us a favorite quote, something you find inspiring.

Rick Gillis
Well, I’ll tell you what, my favorite quote comes from movie. And I don’t know if you know the movie. It’s about Alan Turing, World War II.

Pete Mockaitis
Oh, yes, I did see that.

Rick Gillis
“Sometimes it is the people no one can imagine who do the things no one can imagine.” I use that in my presentations because I want everybody to know that they do have value and they are special. Now, one thing about that quote, I was so taken with it that I actually Googled it and I found that this guy who wrote the book about Alan Turing, I reached out to him in England, and he was just cranky as hell. He said, “I didn’t write that. Some scriptwriter wrote it.” And I went, “Okay, then I won’t give you credit.” And that’s why I tell people it’s from “The Imagination Game” movie, Alan Turing did not say that.

Pete Mockaitis
That’s funny.

Rick Gillis
Yeah, but it’s a great quote.

Pete Mockaitis
Oh, okay. And a favorite book?

Rick Gillis
But I’ll tell you one of my favorites, by Lou Adler. He wrote a book called “The Essential Guide for Hiring and Getting Hired,” and it’s a really smart book for job seekers. And the reason is he wrote it for staffing companies, recruiters, how to hire. And then, after each chapter, he tells the job seeker how to use that same information to their benefit. And Lou Adler, he’s a great guy, very smart.

Pete Mockaitis
All right. And a favorite habit?

Rick Gillis
My favorite habit would be on LinkedIn, and this is LinkedIn-specific, I try to respond to every request to connect with a personal note. And it doesn’t always generate a conversation, but quite often it does, so that’s my personal practice because I’m very aggressive.

Pete Mockaitis
And is there a favorite nugget you share that really seems to connect and resonate, and is quoted back to you often?

Rick Gillis
Yeah. Well, it’s the subtitle. It kind of became the subtitle to the book, and that’s “The proper pay for the best performance.” Equal pay for equal work, I just don’t agree with that anymore, now that I’ve really thought it through. So, the proper pay for the best performance.

Pete Mockaitis
And if folks want to learn or get in touch, where would you point them?

Rick Gillis
RickGillis.com, and if they want to either connect with me or follow me on LinkedIn.

Pete Mockaitis
Okay. And do you have a final challenge or call to action for folks seeking to be awesome at their jobs?

Rick Gillis
Yes. Your work does not speak for itself. You do.

Pete Mockaitis
All right. Rick, this has been a lot of fun. I wish you lots of luck with your motorcycle adventures, and working with folks, and making the biggest impact you’re making.

Rick Gillis
Pete, thank you very much for having me. I appreciate your questions and I can tell you could go a lot deeper on this than I can. You’re the bomb, dude.