Lessons From Undercover Boss
In the first episode of Undercover Boss, Waste Management's President & COO discovered that he had a lot of great employees with a lot of bad corporate policy. In the second episode, the President & CEO of Hooters discovered he had some really bad employees. In the third episode, Joe DePinto, President & CEO of 7-Eleven discovered he had a lot of great employees and great corporate leadership. What is 7-Eleven doing right?
If you or your company is looking for strong leadership to drive your company growth, contact me. As member of a CFO roundtable, CEO roundtable, Financial Executive International, and other, I have a network of CFOs that serve companies from the small startup to the multi-million dollar small business.
At Waste Management, CBS featured five employees who were hard workers but complained about corporate frequently. One lady had to run to the time clock because she got docked two minutes of pay for every minute she was late. Another lady had to pee in a can because she could not take her garbage truck off route. And another was doing the work of three to four people but getting paid for one. It was impressive to see how hard each of them worked despite bad corporate policy.
At Hooters, a manager had the waitresses compete for time off by having them eat beans off a plate like a pig. It was humilating and degrading. Furthermore, the manager got the opportunity to smart off to the CEO and a slap on the wrist.
At 7-Eleven, each employee profiled were hard workers with great attitudes. Not once did any of them complained about corporate. At one store everyone knew and loved Delores and that store had the highest coffee sales for 7-Eleven. At another store, Igor was living the American dream driving a delivery truck during third shift. And James was a talented artist with a work ethic that wouldn't quit. The only negative that arose was a few lights were out at one of the stores. Since maintenance considered this low priority, it was going to take up to thirty days to fix.
Here's my takeway. Corporate does not have to be bad. In my experience of auditing and consulting for dozens of companies, corporate tends to be the bad guy. It doesn't have to be that way. Here's how:
The carrot and stick approach is ineffective. Through extensive research, science knows that rewards and punishment are the least effective means of motivating employees. People are internally motivated by intrinsic drive. The accomplishment of the task is the reward. Personal growth and progress are the reward. Once a person's basic needs of food and shelter are met by fair/competitive compensation package, motivation is driven by the higher needs of respect, confidence, achievement, creativity, and problem solving. (For further reading: Drive by Daniel Pink)
Corporate exists to serve, not police. The primary contrast between Waste Management and 7-Eleven is that WM polices its employees by spying on them and monitoring time clocks; whereas 7-Eleven empowers its employees and delegates responsibility. 7-Eleven employees appear to be self-motivating and self-policing. This may be made easier because of the franchise model in which corporate serves independent owners, but this can be achieved in any organizational structure. In 2006, 'Company culture shifted to “I C.A.R.E. About People and Teamwork and Servant Leadership.' (7-Eleven.com)
Focus on the little things. This is easier said than done. It takes a lot of hard work to get to the point where you can focus on the little things. The biggest problem that Joe DePinto of 7-Eleven ran into during his undercover work was that a few light bulbs were burnt out at one of the stores. When he got back to the board room he told his team that 7-Eleven needs to do a better job of serving the franchises. However, he could not have said that if he had managers who demoralizing employees like at Hooters, or a distribution network that failed to deliver product, or poorly trained employees who did not know the core values of the company. As companies get better, the focus becomes smaller.
World class training. I was so impressed with how each employee profiled at 7-Eleven repeated basic nuggets of the company culture. Delores had Joe 'smile and greet customers'. Another told him to make the best pastries. Igor took care of the stores. This doesn't just happen. It is the result of world class training. World class training consists of a few clear, concise expectations that are clearly communicated and easily understood.
Be best in class and worst in class. 7-Eleven is best-in-class Operational Excellence and worst-in-class Customer Intimacy. (Let me be clear, 7-Eleven has superior customer service, not customer intimacy. Think of customer intimacy as a boutique in which the product can be tailored for each customer. They server fountain drinks and shrink-wrapped sandwiches. Hold the mayo is not an option. Harvard Business further explains the difference.) The main point, however, is that successful companies focus on one of three value disciplines (operational excellence, customer intimacy, or product leadership). You cannot successfully be all things to all people. To use the cliche, jack of all trades master of none. This starts by defining what is most important to your customers and concentrating on it. This takes focus and discipline.
If you or your company is looking for strong leadership to drive your company growth, contact me. As member of a CFO roundtable, CEO roundtable, Financial Executive International, and other, I have a network of CFOs that serve companies from the small startup to the multi-million dollar small business.
Blast from the past
Tweet Log from Twitter: 2010-06-27
Make a Car Race Track from a Water Noodle
Water-pollution reports from Sea-Tac -- where are they?
Port Commission DOES hear from public
Tweet Log from Twitter: 2010-06-24
SEIU Thuggery - A Post From The Draft Doldrums
Program Preview from WRN
Style Report from Mapnik
A sneak peek from TAC new catalog!
Leadership and Management Lessons from "Undercover Boss" - CIO.com
Mar 4, 2010 Yes, it's reality TV. Yes, it's formulaic. Yes, it's produced with carefully selected characters and edited to tell a particular story.
Management Lessons from Undercover Boss - BusinessWeek
Mar 23, 2010 The new CBS reality show demonstrates that each employee has a story—and the importance of management learning what it is, says Kellogg
Great Leadership: Leadership Lessons from Undercover Boss: Episode 1
Feb 8, 2010 Leadership Lessons from Undercover Boss: Episode 1 1. Don't let yourself get isolated from reality. OK, so the first lesson is a no-brainer,
Great Leadership: Leadership “Lessons” from Undercover Boss: Episode 2
Feb 16, 2010 Leadership “Lessons” from Undercover Boss: Episode 2. OK, I admit it, I fell for it. After watching the first episode of the new CBS reality
Seven Leadership Lessons From "UnderCover Boss" - It's Not About
Apr 2, 2010 So what's the key leadership lesson? Get off your perch! No matter what rung on the ladder of success you find yourself perched upon,
Retail's BIG Blog | Undercover Boss Chris McCann shares insights
Apr 12, 2010 Somewhere between Valentine's Day and the height of the Spring floral season wouldn't be best the time to dabble in flower arranging if it
Seven leadership lessons from "Undercover Boss" – It's Not About
Jun 14, 2010 Typically, the manic "reality" television programs being broadcast these days do not file my praise. Amazing Race is a sort of fun and I'm
5 Business Lessons Learned from Undercover Boss | Inc.com
It was one of this year's reality show standouts, beloved by viewers for the dose of schadenfreude they'd get by seeing executives fail at attempting the
'Undercover Boss': 10 Management Lessons from 7-Eleven | The
Feb 22, 2010 As the largest convenience store chain in the world, we think of 7-Eleven as those bright little stores with drinks and snacks, not a place
Leadership and Management Lessons from 'Undercover Boss
Mar 5, 2010 Most employees don't experience truly sincere appreciation from a top executive who's taken the time to walk in their shoes.