New People Electrify the Organization
New People Electrify the Organization
We had a good year in 2009, but it was tough. Whose wasn’t? Sales were harder to come by, more existing customers left or asked for price relief than usual, and bills were hard to collect. Worse than that, internally a lot of people were in a funk all year. Someone on our team started calling it “corporate ennui.” Even though our business was strong overall and we didn’t do any layoffs or salary cuts, I think people had a hard time looking around them, seeing friends and relatives losing their jobs en masse, and feeling happy and secure. And as a company, we were doing well and growing the top line, but we froze a lot of new projects and were in a bit of a defensive posture all year.
What a difference a year makes. This year, still not perfect, is going much better for us. Business conditions are loosening up, and many of our clients have turned the corner. Financially, we’re stronger than ever. And most important, the mood in the company is great. I think there are a bunch of reasons for that – we’re investing more, we’re doing a ton of new innovation, people have travel budgets again, and people see our clients and their own friends in better financial positions.
But by far, I think the most impactful change to the organizational mood we’re seeing is a direct result of one thing: hiring. We are adding a lot of new people this year – probably 60 over the course of the year on top of the 150 we had at the beginning of the year. And my observation, no matter which office of ours I visit, is that the new people are electrifying the organization. Part of that is that new people come in fresh and excited (perhaps particularly excited to have a new job in this environment). Part of it is that new people are often pleasantly surprised by our culture and working environment. Part of it is that new people come in and add capacity to the team, which enables everyone to work on more new things. And part of it is that every new person that comes in needs mentoring by the old timers, which gives the existing staff reminders and extra reason to be psyched about what they’re doing, and what the company’s all about.
Whether it’s one of these things or all of them, I’m not sure I care. I’m just happy the last 18 months are over. The world is a brighter place, and so is Return Path. And to all of our new people (recent and future), welcome…thanks for reinvigorating the organization!
How to Get Laid Off
How to Get Laid Off – an Employee’s Perspective
One of my colleagues at Return Path saw my post about How to Quit Your Job about 5 years ago and was inspired to share this story with me. Don’t read anything into this post, team! There is no other meaning behind my posting it at this time, or any time, other than thinking it’s a very good way of approaching a very difficult situation, especially coming from an employee.
In 2009 I was working at a software security start up in the Silicon Valley. Times were exceedingly tough, there were several rounds of layoffs that year, and in May I was finally on the list. I was informed on a Tuesday that my last day was that Friday. It was a horrible time to be without a job (and benefits), there was almost no hiring at all that year, one of the worst economic down turns on record. While it was a hard message, I knew that it was not personal, I was just caught up on a bad math problem.
After calling home to share the bad news, I went back to my desk and kept working. I had never been laid off and was not sure what to do, but I was pretty sure I would have plenty of free time in the short term, so I set about figuring out how to wrap things up there. Later that day the founder of the company came by, asked why I had not gone home, and I replied that I would be fine with working till the end of the week if he was okay with it. He thanked me.
Later that week, in a meeting where we reviewed and prioritized the projects I was working on, we discussed who would take on the top three that were quite important to the future of the company. A few names were mentioned of who could keep them alive, but they were people who I knew would not focus on them at all. So I suggested they have me continue to work on them, that got an funny look but when he thought about it , it made sense, they could 1099 me one day a week. The next day we set it up. I made more money than I could of on unemployment, but even better I kept my laptop and work email, so I looked employed which paid off later.
That one day later became two days and then three, however, I eventually found other full time work in 2010. Layoffs are hard, but it is not a time to burn bridges. In fact one of the execs of that company is a reference and has offered me other opportunities for employment.
A Perfect Ten
Return Path turns 10 years old today. We are in the midst of a fun week of internal celebrations, combined with our holiday parties in each office as well as year-end all-hands meetings. I thought I would share some of my reflections on being 10 in the blog as I’ve shared them with our team. What being 10 means to me – and what’s enabled us to make it this long:
- It means we’ve beaten the odds. Two major global economic meltdowns. The fact that 90% of new small businesses fail before they get to this point. Probably a higher percentage of venture backed startups fail before they get to 10 as well
- We’ve gotten here because we’ve been nimble and flexible. Over our 10 years, we’ve seen lots of companies come and go, clinging to a model that doesn’t work. We may have taken a while and a few iterations to get to this point, but as one of my Board members says, “we’re an overnight success, ten years in the making!”
- We’ve also made it this long because we have had an amazing track record with our three core constituencies – employees, clients, and investors – including navigating the sometimes difficult boundaries or conflicts between the three
What I’m most proud of from our first decade:
- We’ve built a great culture. Yes, it’s still a job. But for most of our team members most of the time, they like work, they like their colleagues, and they have a fun and engaging time at work. That’s worth its weight in gold to me
- We’ve built a great brand and have been hawkish about protecting our reputation in the marketplace. That’s also the kind of thing that can’t be bought
- We haven’t sacrificed our core principles. We’ve always, going back to our founding and the ECOA business, had a consumer-first philosophy that runs deep. This core principle continues to serve us well in deliverability (a non-consumer-facing business) and is clearly the right thing to do in the email ecosystem
What I most regret or would do differently if given the chance:
- We have not raised capital as efficiently as possible – mostly because our company has shifted business models a couple of times. Investors who participated in multiple rounds of financing will do very well with their investments. First or second round angel investors who didn’t or couldn’t invest in later rounds will lose money in the end
- I wish we were in one location, not five. We are embracing our geographic diversity and using it to our advantage in the marketplace, but we pay a penalty for that in terms of travel and communication overhead
- We have at times spread ourselves a little too thin in pursuit of a fairly complex agenda out of a relatively small company. I think we’re doing a good job of reigning that in now (or growing into it), but our eyes have historically been bigger than our stomachs
Thanks to all our investors and Board members, especially Greg Sands from Sutter Hill Ventures, Fred Wilson from Flatiron Partners and Union Square Ventures, Brad Feld from Mobius Venture Capital, and Scott Weiss for their unwavering support and for constantly challenging us to do better all these years. Thanks to our many customers and partners for making our business work and for driving us to innovate and solve their problems. Thanks to our many alumni for their past efforts, often with nothing more to show for it than a line item on their resume. And most of all, thanks to our hardworking and loyal team of nearly 200 for a great 2009 and many more exciting years ahead!
Why I joined the DMA Board, and what you can expect of me in that role
Why I joined the DMA Board, and what you can expect of me in that role
I don’t normally think of myself as a rebel. But one outcome of the DMA’s recent proxy fight with Board member Gerry Pike is that I’ve been appointed to the DMA’s Board and its Executive Committee and have been labeled “part of the reform movement” in the trade press. While I wasn’t actively leading the charge on DMA reform with Gerry, I am very enthusiastic about taking up my new role.
I gave Gerry my proxy and support for a number of reasons, and those reasons will form the basis of my agenda as a DMA Board member. As a DMA member, and one who used to be fairly active, I have grown increasingly frustrated with the DMA over the past few years.
1. The DMA could be stronger in fighting for consumers’ interests. Why? Because what’s good for consumers is great for direct marketers. Marketing is not what it used to be, the lines between good and bad actors have been blurred, and the consumer is now in charge. The DMA needs to more emphatically embrace that and lead change among its membership to do the same. The DMA’s ethics operation seems to work well, but the DMA can’t and shouldn’t become a police state and catch every violation of every member company. Its best practices and guidelines take too long to produce and usually end up too watered down to be meaningful in a world where the organization is promoting industry self-regulation. By aggressively fighting for consumers, the DMA can show the world that a real direct marketer is an honest marketer that consumers want to hear from and buy from.
2. Despite a number of very good ideas, the DMA’s execution around interactive marketing has been lacking. The DMA needs to accept that interactive marketing IS direct marketing – not a subset, not a weird little niche. It’s the heart and soul of the direct marketing industry. It’s our future. The acquisition of the EEC has been one bright spot, but the DMA could do much more to make the EEC more impactful, grow its membership, and replicate it to extend the DMA’s reach into other areas of interactive marketing, from search to display advertising to lead generation. The DMA’s staff still has extremely limited experience in interactive marketing, they haven’t had a thought leader around interactive on staff for several years, and their own interactive marketing efforts are far from best practice. Finally, the DMA’s government affairs group, perhaps its greatest strength, still seems disproportionately focused on direct mail issues. The DMA should maintain its staunch support of traditional direct marketers while investing in the future, making interactive marketing an equal or larger priority than traditional direct marketing. We have to invest in the future.
3. Finally, I think the DMA suffers from a lack of transparency that doesn’t serve it well in the hyper-connected world we live in here in 2009 – that’s a nice way of saying the organization has a big PR problem. The organization does a lot of great work that never gets adequately publicized. This whole proxy fight episode is another example, both in the weak response from the DMA and also in a lot of the complaints Gerry lodged against the organization, many of which the organization says are untrue or misleading. Senior DMA execs or Board members should be blogging. They should be active thought leaders in the community. They should be much more engaged with their members to both understand member needs and requirements and more aggressively promote their agenda.
In short, I will be an independent voice who advocates for progress and change in the areas that I consider to be most important, and I will be transparent and open about expressing my views. I’ve already been clear with the existing DMA Board and management that I do have this agenda, and that I hope the organization will embrace it. If they do, even if only in part, I think it will be to the DMA’s benefit as well as the benefit of its members. If they reject it wholesale, my interest in long-term involvement will be fairly low.
That’s the story. As I said up front, I am taking up this new role with enthusiasm and with the belief that the DMA is open to change and progress. We’ll see how it goes, and I will blog about it as often as I can.
Do you have thoughts on the future of the DMA? I’d love to hear from you. You can leave a comment below or email me directly at matt at returnpath dot net.
Less is More
Less is More
I have a challenge for the email marketing community in 2009. Let’s make this the Year of “Less is More.”
Marketers are turning to email more and more in this down economy. There’s no question about that. My great fear is that just means they’re sending more and more and more emails out without being smart about their programs. That will have positive short term effects and drive revenues, but long term it will have a negative long term impact on inboxes everywhere. And these same marketers will find their short term positive results turning into poor deliverability faster than you can say “complaint rate spike.”
I heard a wonderful case study this week from Chip House at ExactTarget at the EEC Conference. One of his clients, a non-profit, took the bold and yet painful step of permissioning an opt-out list. Yikes. That word sends shivers down the spine of marketers everywhere. What are you saying? You want me to reduce the size of my prime asset? The results of a campaign done before and after the permission pass are very telling and should be a lesson to all of us. The list shrank from 34,000 to 4,500. Bounce rate decreased from 9% to under 1%. Spam complaints went from 27 to 0 (ZERO). Open rate spiked from 25% to 53%. Click-through from 7% to 22%. And clicks? 509 before the permissioning, 510 after. This client generated the same results, with better metrics along the way, by sending out 87% LESS EMAIL. Why? Because they only sent it to people who cared to receive it.
This is a great time for email. But marketers will kill the channel by just dumping more and more and more volume into it. Let’s all make Less Is More our mantra for the year together. Is everyone in? Repeat after me…Less Is More! Less Is More!
Book Short: The Little Engine that Could
Book Short: The Little Engine that Could
Authors Steven Woods and Alex Shootman would make Watty Piper proud. Instead of bringing toys to the children on the other side of the mountain, though, this engine brings revenue into your company. If you run a SaaS business, or really if you run any B2B business, Revenue Engine: Why Revenue Performance Management is the Next Frontier of Competitive Advantage, will change the way you think about Sales and Marketing. The authors, who were CTO and CRO of Eloqua (the largest SaaS player in the demand management software space that recently got acquired by Oracle), are thought leaders in the field, and the wisdom of the book reflects that.
The book chronicles the contemporary corporate buying process and shows that it has become increasingly like the consumer buying process in recent years. The Consumer Decision Journey, first published by McKinsey in 2009, chronicles this process and talks about how the traditional funnel has been transformed by the availability of information and social media on the Internet. Revenue Engine moves this concept to a B2B setting and examines how Marketing and Sales are no longer two separate departments, but stewards of a combined process that requires holistic analysis, investment decisions, and management attention.
In particular, the book does a good job of highlighting new stages in the buying process and the imperatives and metrics associated with getting this “new funnel” right. One that resonated particularly strongly with me was the importance of consistent and clean data, which is hard but critical! As my colleague Matt Spielman pointed out when we were discussing the book, the one area of the consumer journey that Revenue Engine leaves is out is Advocacy, which is essential for influencing the purchase process in a B2B environment as well.
One thing I didn’t love about the book is that it’s a little more theoretical than practical. There aren’t nearly enough detailed examples. In fact, the book itself says it’s “a framework, not an answer.” So you’ll be left wanting a bit more and needing to do a bit more work on your own to translate the wisdom to your reality, but you’ll have a great jumping off point.
Two Great Lines (and One Worrisome One) About the Current Macroeconomic Situation
I was trading emails a few weeks ago Elliot Noss from Tucows about the current state of the economy after being on a panel together about it, and he wrote:
The market is fascinating right now. Heated competition AND layoffs and hiring freezes. It feel like an old European hotel where there are two faucets, one is too hot and the other too cold.
While a quick rant about European hotel bathrooms could be fun…we’ll just stick to the sink analogy. As anyone who has ever tried to use one of these sinks that Elliot describes knows, they’re hard to use and illogical. Sure, sometimes you want freezing water and sometimes you want scalding water (I guess), but often, you want something in between. And the only way to achieve that is to turn on both freezing and scalding at the same time? That’s weird.
Then I was on another email thread recently with a group of CEOs, when John Henry from Ride With Loop said this:
Whatever the climate, we all surely agree there is no bad time to build a good business.
How true that is!
But here’s the worrisome part. It’s impossible to predict what’s going to happen next. We are in uncharted territory here with a land war in Europe, a partial global oil embargo of a top tier oil producer, a pandemic, supply chain problems, etc. etc. There are days and circumstances where everything feels normal. Plenty of businesses, especially in the tech sector, are kicking ass. And yet there are days and circumstances that feel like 2001 or 2009. It’s tough to navigate as a startup CEO. Yes, it’s obvious you should try to have a couple years of cash on hand, and that you should be smart about investments and not get too far ahead of revenue if you’re in certain sectors (presumably if you’re in an R&D intensive field and weren’t planning to have revenue for years on end, life isn’t all that different?). But beyond that, there’s no clear playbook.
And that’s where the worrisome line comes in. I saw Larry Summers on Meet the Press last weekend, who predicted that
a recession would come in late 2023.
Wait, what? Aren’t things messed up now? Yes, inflation is high, the stock market is down, and interest rates are creeping up. But the economy is still GROWING. Unemployment is still LOW. Summers’ point is a reminder that contraction is likely, but it may still be a ways off, it depends how the Fed handles interest rate hikes (and about a zillion other things), and it’s impossible to predict. That was more worrisome to me. If we’re navigating choppy waters now, it may not just be for a couple of quarters. It may be that 4-6 quarters from now, we are in for 2-3 quarters of contraction. That is a more than most companies are able to plan for from a cash perspective.
Frothy macro environments lead to bad businesses getting created, too many lookalike businesses popping up, or weak teams getting funded. When the tide goes out, as they say, you can see who is swimming naked. But if you’re building a good business, one that has staying power and a clear value proposition, with real people or clients paying real money for a real product or service, and if you’re serious about building a good company, keep on keeping on. Be smart about key decisions, especially investment decisions, but don’t despair or give up.
We’ll all get through this.
Inquiry vs. Advocacy
My Grandpa Bill used to not want to talk about himself at dinner parties. When one of us asked him why one day, he said, “I already know what I have to say. What I don’t know, is what the other person has to say.”
There are a few principles I learned years ago in a workshop that my coach Marc led for us called Action/Design. I’m going to try writing a few posts about them, and you can find some articles on them here.
Inquiry vs. Advocacy is simple. Understand the balance of when you ask and listen vs. when you speak in a given conversation. Both are important tools in the CEO tool belt.
My rule of thumb is to ask and listen more than you speak. It’s the only way you will learn, collect data on your organization and on your customers and products. Early in your career, you should primarily be Inquiring. Even mid- and later career people who sometimes must be in a position to speak or advocate their point of view benefit most when they ask and listen and learn.
More important, though, Inquiry vs. Advocacy is the best way to guide your communications in a difficult conversation, complex negotiation, or tricky situation. And it’s in those kinds of situations that you actually need to be cognizant that both approaches are important, and you need to know which one to pull out when and pay attention to how others in the conversation are using the two as well. From an article in the resource center I linked to above:
In conversations on complex and controversial issues, when there is a high degree of advocacy and little inquiry, people are unable to learn about the nature of their differences. People may feel the speaker is imposing a view on them without taking into account their perspective, which can lead to either escalating conflict or withdrawal. When there is a high degree of inquiry, but no one is willing to advocate a position, it is difficult for participants to know where the other stands, and the lack of progress can lead people to feel frustrated and impatient. As a participant in a conversation, being aware of the balance of advocacy and inquiry can help you determine how best to contribute at a given time. If you hear that people are advocating but not asking questions, inquire into their views before adding your own. If you hear people asking questions for information but not stating an opinion, advocating your view may help the group move forward.
Inquiry vs. Advocacy has become a cornerstone of how I think about communicating and learning. I like to think I learned it from Grandpa Bill first, but the Action/Design work with my coach, and then years of practice, drove it home.
Should CEOs wade into Politics?
This question has been on my mind for years. In the wake of Georgia passing its new voting regulations, a many of America’s large company CEOs are taking some kind of vocal stance (Coca Cola) or even action (Major League Baseball) on the matter. Senate Majority Leader Mitch McConnell told CEOs to “stay the hell out of politics” and proceeded to walk that comment back a little bit the following day. The debate isn’t new, but it’s getting uglier, like so much of public discourse in America.
Former American Express CEO Harvey Golub wrote an op-ed earlier this week in The Wall Street Journal entitled Politics is Risky Business for CEOs (behind a paywall), the subhead of which sums up what my point of view has always been on this topic historically — “It’s imprudent to weigh in on issues that don’t directly affect the company.” His argument has a few main points:
- CEOs may have opinions, but when they speak, they speak for and represent their companies, and unless they’re speaking about an issue that effects their organization, they should have Board approval before opening their mouths
- Whatever CEOs say about something political will by definition upset many of their employees and customers in this polarized environment (I agree with this point a lot of the time and wrote about it in the second edition of Startup CEO)
- There’s a slippery slope – comment on one thing, you have to comment on all things, and everything descends from there
So if you’re with Harvey Golub on this point, you draw the boundaries around what “directly affects” the company — things like employment law, the regulatory regime in your industry, corporate tax rates, and the like.
The Economist weighed in on this today with an article entitled CEO activism in America is risky business (also behind a paywall, sorry) that has a similar perspective with some of the same concerns – it’s unclear who is speaking when a CEO delivers a political message, messages can backfire or alienate stakeholders, and it’s unclear that investors care.
The other side of the debate is probably best represented by Paul Polman, longtime Unilever CEO, who put climate change, inequality, and other ESG-oriented topics at the center of his corporate agenda and did so both because he believed they were morally right AND that they would make for good business. Unilever’s business results under Polman’s leadership were transformational, growing his stock price almost 300% in 10 years and outpaced their peers, all as a “slow growth” CPG company. Paul’s thinking on the subject is going to be well documented in his forthcoming book, Net Positive: How Courageous Companies Thrive by Giving More Than They Take, which he is co-authoring with my good friend Andrew Winston and which will come out later this year.
While I still believe that on a number of issues in current events, CEOs face a lose-lose proposition by wading into politics, I’m increasingly moving towards the Paul Polman side of the debate…but not in an absolute way. As I’ve been wrestling with this topic, at first, I thought the definition of what to weigh in on had to come down to a definition of what is morally right. And that felt like I was back in a lose-lose loop since many social wedge issues have people on both sides of them claiming to be morally right — so a CEO weighing in on that kind of issue would be doomed to alienate a big percentage of stakeholders no matter what point of view he or she espouses.
But I’m not sure Paul and Andrew are absolutists, and that’s the aha for me. I believe their point is that CEOs need to weigh in on the things that directly affect their companies AND ALSO weigh in on the things that indirectly affect their companies.
So if you eliminate morality from the framework, where do you draw the line between things that have indirect effects on companies and which ones do not? If I back up my scope just a little bit, I quickly get to a place where I have a different and broader definition of what matters to the functioning of my industry, or to the functioning of commerce in general without necessarily getting into social wedge issues. For want of another framework on this, I landed on the one written up by Tom Friedman and Michael Mandelbaum in That Used to be Us: How America Fell Behind in the World It Invented and How We Can Come Back, which I summarized in this post a bunch of years ago — that America has lost its way a bit in the last 20-40 years because we have strayed from the five-point formula that has made us competitive for the bulk of our history:
- Providing excellent public education for more and more Americans
- Building and continually modernizing our infrastructure
- Keeping America’s doors to immigration open
- Government support for basic research and development
- Implementation of necessary regulations on private economic activity
So those are some good things to keep in mind as indirectly impacting commercial interests and American competitiveness in an increasingly global world, and therefore are appropriate for CEOs to weigh in on. And yes, I realize immigration is a little more controversial than the other topics on the list, but even most of the anti-immigration people I know in business are still pro legal immigration, and even in favor of expanding it in some ways.
And that brings us back to Georgia and the different points of view about whether or not CEOs should weigh in on specific pieces of legislation like that. Do voting rights directly impact a company’s business? Not most companies. But what about indirect impact? I believe that having a high functioning democracy that values truth, trust, and as widespread legal voter participation as possible is central to the success of businesses in America, and that at the moment, we are dangerously close to not having a high functioning democracy with those values.
I have not, as Mitch McConnell said, “read the whole damn bill,” but it doesn’t take a con law scholar to note that some pieces of it which I have read — no giving food or water to people in voting lines, reduced voting hours, and giving the state legislature the unilateral ability to fire or supersede the secretary of state and local election officials if they don’t like an election’s results — aren’t measures designed to improve the health and functioning of our democracy. They are measures designed to change the rules of the game and make it harder to vote and harder for incumbents to lose. That is especially true when proponents of this bill and similar ones in other states keep nakedly exposing the truth when they say that Republicans will lose more elections if it’s easier for more people to vote, instead of thinking about what policies they should adopt in order to win a majority of all votes.
And for that reason, because of that bill, I am moving my position on the general topic of whether or not CEOs should wade into politics from the “direct impact” argument to the “indirect impact” one — and including in that list of indirect impacts improving the strength of our democracy by, among other things, making it as easy as possible for as many Americans to vote as possible and making the administration of elections as free as possible from politicians, without compromising on the principle of minimizing or eliminating actual fraud in elections, which by all accounts is incredibly rare anyway.
Counter Cliche: No Conflict, No Interest
Counter Cliche: No Conflict, No Interest
The entrepreneur’s take on Fred’s VC cliche of the week — "No conflict, No interest" is that it applies equally but differently to management teams.
Our nation’s first president, George Washington, is often said to have brilliantly placed political enemies Thomas Jefferson and Alexander Hamilton on his first cabinet so he would have differing points of view from which to choose when deciding some of the complex and delicate issues that faced our nation in its infancy. And many of those early decisions of the Washington administration — things like how to pay down the debt from the Revolution, or whether and how to put down the Whiskey Rebellion — were critical in forming our nation and deciding how much power to invest in our government.
The tension between one executive and another on a management team is, though perhaps less historically important, no different. A management team that finds itself 100% in agreement, 100% of the time, is in trouble. A management team that can have disagreements and use that tension productively to drive decisions is much better off. Building such a team requires the CEO to seek out executives who view the world differently, who have the courage to speak their minds in the face of strong opposition, and who have the ability to see different points of view.
The Illusion and (Mis)uses of Certainty
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:
- Consensus – showing your view is widely shared (or shaping your view to perceptions)
- Repetition – having people express their own opinions repeatedly (encourage customers, employees, etc. to express positive opinions or opinions aligned with corporate goals)
- Ease – how easily an idea comes to mind (making good, regular visual use of key concepts)
- 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?