The Nachos Don’t Have Enough Beef in Them

Short story, two powerful lessons.

Story:  I’m sitting at the bar of Sam Snead’s Tavern in Port St. Lucie, Florida, having dinner solo while I wait for my friend to arrive.  I ask the bartender where he’s from, since he has a slight accent.  Nice conversation about how life is rough in Belfast and thank goodness for the American dream.  I ask him what to order for dinner and tell him a couple menu items I’m contemplating.  He says, “I don’t know why they don’t listen to me.  I keep telling them that all the people here say that the nachos aren’t good because they don’t have enough beef in them.”  I order something else.  Five minutes later, someone else pounds his hand on the bar and barks out “Give me a Heineken and a plate of nachos.”  The bartender enters the order into the point-of-sale system.

Lesson 1:  Listen to your front-line employees – in fact, make them your customer research team.  I’ve seen and heard this time and again.  Employees deal with unhappy customers, then roll their eyes, knowing full well about all the problems the customers are encountering, and also believing that management either knows already or doesn’t care.  Or both.  There’s no reason for this!  At a minimum, you should always listen to your customer-facing employees, internalize the feedback, and act on it.  They hear and see it all.  Next best prize – ask them questions.  Better yet – get them to actively solicit customer feedback.

Lesson 2:  Always remember another person’s person-ness, especially if he or she is in a service role.  The old story about the waiter spitting and coughing in the obnoxious customer’s soup would dictate that self-preservation, if nothing else, should inspire civility towards people who are serving you, be it a B2B account manager or a waiter in a diner.  Next best prize – self-interest to get a higher level of service.  Better yet – engagement and kindness like you’d want people to show you.  Chances are, they’re trying to make your day a bit better.  Shouldn’t you try to do the same for theirs?

(Lesson 3:  Always listen to your bartender!)

Not Just About Us

When we updated our values this year, we felt there were a couple critical business elements missing from this otherwise “how” series of statements.  One thing missing was our clients and users!  So we added this value to our list:

Not Just About Us:  We know we’re successful when our clients are successful and our users are happy.

This may be one of the most straightforward statements of all our values, so this will be a short post.  We serve lots of constituencies at Return Path.  And we always talk about how we’re a “People First” organization and what that means.  I suppose that inherently means we are a “Client Second” organization, though I’m not sure we’d ever come out and say that.  We do believe that by being People First, we will ultimately do the best job for our customers. 

 That said, we aren’t in business just to build a great company or to have an impact on our community.  Or even our shareholders.  We are also in it for our customers.  Whether we are producing a product for mailers, for ESPs, for ISPs, for security companies, for agencies, or for end users, we can’t forget that as an important element of our success every day.

Job 1

The first “new” post in my series of posts about Return Path’s 14 Core Values is, fittingly,

Job 1:  We are all responsible for championing and extending our unique culture as a competitive advantage.

The single most frequently asked question I have gotten internally over the last few years since we grew quickly from 100 employees to 350 has been some variant of “Are you worried about our ability to scale our culture as we hire in so many new people?”  This value is the answer to that question, though the short answer is “no.”

I am not solely responsible for our culture at Return Path. I’m not sure I ever was, even when we were small.  Neither is Angela, our SVP of People.  That said, it was certainly true that I was the main architect and driver of our culture in the really early years of the company’s life.  And I’d add that even up to an employee base of about 100 people, I and a small group of senior or tenured people really shouldered most of the burden of defining and driving and enforcing our culture and values.

But as the business has grown, the amount of responsibility that I and those few others have for the culture has shrunk as a percentage of the total.  It had to, by definition.  And that’s the place where cultures either scale or fall apart.  Companies who are completely dependent on their founder or a small group of old-timers to drive their cultures can’t possibly scale their cultures as their businesses grow.  Five people can be hands on with 100.  Five people can’t be hands on with 500.  The way we’ve been able to scale is that everyone at the company has taken up the mantle of protecting, defending, championing, and extending the culture.  Now we all train new employees in “The RP Way.”  We all call each other out when we fail to live up to our values.  And the result is that we have done a great job of scaling our culture with our business.

I’d also note that there are elements of our culture which have changed or evolved over the last few years as we’ve grown.  That isn’t a bad thing, as I tell old-timers all the time.  If our products stayed the same, we’d be dead in the market.  If our messaging stayed the same, we’d never sell to a new cohort of clients.  If our values stayed the same, we’d be out of step with our own reality.

Finally, this value also folds in another important concept, which is Culture as Competitive Advantage.  In an intellectual capital business like ours (or any on the internet), your business is only as good as your people.  We believe that a great culture brings in the best people, fosters an environment where they can work at the top of their games even as they grow and broaden their skills, increases the productivity and creativity of the organization’s output through high levels of collaboration, and therefore drives the best performance on a sustained basis.  This doesn’t have to be Return Path’s culture or mean that you have to live by our values.  This could be your culture and your values.  You just have to believe that those things drive your success.

Not a believer yet?  Last year, we had voluntary turnover of less than 1%.  We promoted or gave new assignments to 15% of our employees.  And almost 50% of our new hires were referred by existing employees.  Those are some very, very healthy employee metrics that lead directly to competitive advantage.  As does our really exciting announcement last week of being #11 in the mid-sized company on Fortune Magazine’s list of the best companies to work for.

Taking Stock, Part II

Last year, I wrote about the three questions I ask myself at the beginning of every year to make sure my career is still on track. [https://onlyonceblog.wpengine.com/2012/01/taking-stock]   The questions are:

1. Am I having fun at work?
2. Am I learning and growing as a professional?
3. Is my work financially rewarding enough, either in the short term or in the long term?

This year, I am adding a fourth suggestion following a great conversation I had a bunch of months back with Jerry Colonna, a great CEO coach, former VC, and all around great person.  Question four is:

Am I having the impact I want to have on the world?

This last question was probably always implicit in my first two questions – but I like calling it out separately.  All of us have purpose in our lives and impact on others, whether it’s family, friends, colleagues, clients, or some slice of broader humanity.  Asking whether that impact is present and enough is just another check and balance on my own operating system to make sure that I’m still on track with my own goals and values.

Happy New Year!

Fifth in my series on creating the best place to work – Being the best enabler.  As any management guru will tell you, as you have a larger and larger team, your job is much less about getting good work done than it is enabling others to get good work done.  What does that mean?

First, don’t be a bottleneck.  You don’t have to be an Inbox-Zero nut (but feel free if you’d like), but you do need to make sure you don’t have people in the company chronically waiting on you before they can take their next actions on projects.  Otherwise, you lose all the leverage you have in hiring a team.  Don’t let approvals or requests pile up!

Second, run great meetings.  Meetings are a company’s most expensive endeavor.  Sometime in a senior staff meeting, calculate the cost in salary of everyone sitting there for an hour or two!  Run good meetings yourself and don’t enable bad behavior…and in the course of doing that, role model the same for your senior staff members who do their own staff or team meetings.  Make sure your meetings are as short as possible, as actionable as possible, and as interesting as possible.  Don’t hold a meeting when an email or 5-minute recorded message will suffice.  Don’t hold a weekly standing meeting when it can be biweekly.  Cancel meetings if there’s nothing to cover.  End them early if you can’t fill the time productively.  Vary the tempo of your meetings to match their purpose – the same staff group can have a weekly with one agenda, a monthly with a different agenda, and a quarterly with a different agenda.

Finally, don’t run a hub-and-spoke system of communications.  Some managers who are a bit command-and-control like hoarding information or forcing all communication to go through them or surface in staff meetings.  No need for that!  Almost everyone on your team, if you are a senior manager, should have individual bilateral relationships and regular 1:1 meetings without you there.  The same goes for your Board and your staff, if you are the CEO.  They should have individual relationships that don’t go through you.  if you are a choke point for communication, it’s just as bad as being a bottleneck for approvals.

Enabling your team to give it their all is a gift to yourself and your organization as much as it is a gift to your team – give that gift early and often.

You Can’t Teach a Cat How to Bark, But You Might be Able to Teach it How to Walk on its Hind Legs

My co-founder George and I have had this saying for a while.  Cats don’t bark.  They can’t.  Never will.  They also don’t usually walk on their hind legs in the wild, but some of them, after some training, could probably be taught to do so.

Working with people on career evolution sometimes follows that same path.  Lots of the time, an employee’s career evolution is natural and goes well.  They’re playing to their strengths, in their sweet spot, progressing along nicely.  But often that’s not the case.  And it goes both ways.  Some employees want something different.  The sales rep wants to be a sales manager.  The product manager wants to try marketing.  Sometimes the organization needs something different out of the person.  Be a stronger manager.  Be more collaborative.  Acquire more domain or functional expertise.

These transitions might or might not be difficult.  It completely depends on the person involved and the competencies required for the new role.  And that’s where the barking cat comes into play.  There’s more art than science here, but as a manager or as the employee, figuring out the gap between existing strengths/experience and the required competencies for the new job, and whether the missing elements *can* be taught or not is the exercise at hand.

I’m not sure there’s a useful rule of thumb here, either.  I had a boss once many years ago who said you can teach smart people how to do anything other than sales.  Another boss said you can teach anyone any fact, but you can’t teach anyone empathy.  Both of these feel too one-size-fits-all for me.  One thing we do at Return Path from time to time is encourage an employee facing some kind of stretch transition (for whatever reason) to participate in or run a short-term side project with a mentor that lets them flex some relevant new muscles.  Essentially we let them try it on for size.

September’s Harvard Business Review had a really thought-provoking article for me called How Certainty Transforms Persuasion.  Seth Godin wrote a blog post around the same time called The Illusion of Control.  The two together make for an interesting think about using information to shape behavior as leaders.  I’ve often been accused of delivering too many mixed messages to the company at all-hands meetings, so I enjoyed the think, though not in the way I expected to.

Let’s start with Seth’s thesis, which is easier to get through.  Essentially he says that nothing is certain, at best we can influence events, we’re never actually in control of situations…but that we think we are:

When the illusion of control collides with the reality of influence, it highlights the fable the entire illusion is based on…You’re responsible for what you do, but you don’t have authority and control over the outcome. We can hide from that, or we can embrace it.

Moving onto the much longer HBR article, the key thesis there is that certainty shapes our behavior, as the more certain we are of a belief (whether it’s correct or incorrect), the more it influences us:

In short, certainty is the catalyst that turns attitudes into action, bringing beliefs to life and imbuing them with meaning and consequence.

At first, it seems like these two positions might be at odds with each other, but there are other interesting nuggets in the HBR article as well that tie the two positions together.  First, that the packaging of information influences the certainty of the consumers of that information (for example, when a generally positive product reviews takes pains to admit the product’s deficiencies).  Second, that your own position in a given situation may influence your level of certainty (for example, when you are the most senior person in the room, as opposed to when you are the most junior person in the room).

The HBR article then goes on to talk about four ways companies can boost certainty in their employee population, since certainty is a driver of behavior:

1. Consensus – showing your view is widely shared (or shaping your view to perceptions)
2. Repetition – having people express their own opinions repeatedly (encourage customers, employees, etc. to express positive opinions or opinions aligned with corporate goals)
3. Ease – how easily an idea comes to mind (making good, regular visual use of key concepts)
4. Defense – people are more certain after defending a position (being a devil’s advocate in an argument to get employees to defend their position)

My initial reaction to reading both Seth’s post and the HBR article was that if Certainty is nothing but an illusion, and yet it’s a key driver of behavior, then using Certainty by definition a manipulative management technique.  Say something’s true enough, get people to believe it, hope it’s right.  Or worse, get people to say it themselves enough so they believe their own inner monologues, not just yours.  But then I thought about the feedback that I get — that I deliver too many mixed messages — and changed my view. Coming across as certain, even when certainty may or may not be real, isn’t any more manipulative than any other management or even sales technique.  Our job as leaders is to generate inspiration and activity in our teams, isn’t it?  Using certainty isn’t by definition disingenuous, even if it’s an illusion at times.  It’s one thing to be All In, Until You’re Not, for example, and another thing entirely to publicly support a position that you know is false.  All we can do as leaders is to do our best.

Having said that, I think using certainty as a management tool is something leaders need to do judiciously given how powerful it is, and also given its fragility.  If business results are mixed, you can’t stand up in front of a room full of people and say things are great (or terrible), even if your people are seeking a black and white answer.  However, you can (and should) communicate your certainty that the direction you choose to take your team or your company is the right one.  And you can use transparency to further bolster your position.  Share the details of HOW you reached your decision with the people on your team.  After all, if you’re not certain, or if the logic that drove your certainty is flawed, why would anyone follow you?

This is the hardest thing I’ve ever had to write in 12 years as Return Path’s CEO. I hope it never has an equal.

One of our long-time employees, J.D. Falk, passed away last night after a year-long struggle with cancer. J.D., which most people don’t know was short for Jesse David, was only 37 years old. Although I cannot claim to be a close friend of J.D.’s, I have known him fairly well in the industry going back about eight years, and he has been a trusted member of our team here for the last four+ years.

J.D. did great work for us at Return Path, but my admiration for him goes beyond that. I admire him first for his willingness to work for the common good as much as, or even more than, his own good. J.D.’s tireless pro-bono work with anti-abuse non-profits MAAWG, CAUCE, and the IETF complemented the work he did here for a salary. And although he had a very positive and enduring impact on us at Return Path in terms of how we run our business and think about the delicate balance between email senders and receivers, he had an even bigger, broader impact through his standards work, papers, and tireless work on event programming and committee chairmanship. He did all that work not for money, not for thanks, but because it was, he felt, the right thing to do.

I also admire J.D. tremendously for his extremely principled, but thoughtfully considered, approach to life. His principles around internet users are well known and very “Cluetrain.” And yet, in a world increasingly filled with people whose opinions are intransigent, he was always open-minded and willing to engage in productive dialog with people who had different points of view than his own, sometimes changing his own thoughts and actions as a result of those conversations. That quality is all-too-rare in today’s society.

J.D.’s wife Hope told me a great story that sums up the fiber of J.D.’s being earlier this week. Just last weekend, from his hospital bed, J.D. realized that he and Hope had concert tickets they would be unable to use because of his illness, so he wanted to give them to friends. However, the tickets were only in electronic form on J.D.’s work laptop. Hope said, “J.D., just give me your password, and I’ll go home and print them out so we can give them away.” His response? “I can’t give you my password – that’s against company policy, but bring the laptop here to the hospital, and I can log in myself and forward you the tickets.”

Today is a sad day for me and for all 300 of us at Return Path as we lose a friend and colleague for the first time in our company’s history. And of course today is a sad day for the anti-abuse community that J.D. has been such an integral part of for his entire career. But more than that, today is a sad day for the internet and for the billions of humans that use it – sadder in some ways because they don’t even know that one of the people integrally involved in keeping it safe for them has left us.

I will post again as soon as I can with details of the memorial service for J.D. as well as details of where to make some kind of donation or contribution in his honor. I will post again as soon as I can with details of the memorial service for J.D. as well as details of where to make some kind of donation or contribution in his honor. In the meantime, I encourage J.D.’s many friends and colleagues around the world to post their memories to this memorial site.

What a View, Part III

We are in the middle of our not-quite-annual senior team 360 review process this week at Return Path.  It’s particularly grueling for me and Angela, our SVP of People, to sit in, facilitate, and participate in 15 of them in such a short period of time, but boy is it worth it!  I’ve written about this process before — here are two of the main posts (overall process, process for my review in particular, and a later year’s update on a process change and unintended consequences of that process change). I’ve also posted my development plans publicly, which I’ll do next month when I finalize it.

This year, I’ve noticed two consistent themes in my direct reports’ review sessions (we do the live 360 format for any VP, not just people who report directly to me), which I think both speak very well of our team overall, and the culture we have here at Return Path.

First, almost every review of an executive had multiple people saying the phrase, “Person X is not your typical head of X department, she really is as much of a general business person and great business partner and leader as she is a great head of X.”  To me, that’s the hallmark of a great executive team.  You want people who are functional experts, but you also need to field the best overall team and a team that puts the business first with understandings of people, the market, internal dependencies, and the broader implications of any and all decisions.  Go Team!

Second, almost every review featured one or more of my staff member’s direct reports saying something like “Maybe this should be in my own development plan, but…”  This mentality of “It’s not you, it’s me,” or in the language of Jim Collins, looking into the mirror and not out the window to solve a problem, is a great part of any company’s operating system.  Love that as well.

Ok.  Ten down, five to go.  Off to the next one…

Taking Stock

Every year around this time, I take a few minutes to reflect on how the business is doing, on my goals and development plans, and on what I want to accomplish in the coming year.  Although most of that work is focused on how to move the business forward, I also make sure to take stock of my own career trajectory.  I always ask myself three questions when I do this:

1. Am I having fun at work?
2. Am I learning and growing as a professional?
3. Is my work financially rewarding enough, either in the short term or in the long term?

Of course, I always shoot for 3 YES responses.  Then I know my career is on track.  But as long as I get 2 YESses, then I feel like I’m in good shape, and I know which one to work on in the coming year.  I’m not sure I’ve ever had a situation in the dozen years of running Return Path where I’ve had 0 or 1 YESses.  If I did, I’d probably spend more time thinking about whether I was still in the right job for me.

I think these three questions can work for anyone, not just a CEO.  Hopefully everyone takes the time to take stock like this at least once a year.  It’s healthy for everyone’s career development.

I Don’t Want to Be Your Friend (Today), part III

My first thought when my colleague Jen Goldman forwarded me a SlideShare presentation that was 224 pages long was, “really?”  But a short 10 minutes and 224 clicks later, I am glad I spent the time on it.

Paul Adams, a Senior User Experience Researcher at Google, put the presentation up called The Real Life Social Network.  Paul describes the problem I discuss in Part I and Part II of this series much more eloquently than I have, with great real world examples and thoughts for web designers at the end.

If you’re involved in social media and want to start breaking away from the “one size of friend fits all” mentality – this is a great use of time.