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Talent Fatal Flaw

At one time it was the executive parking lot that was coveted, and over time, many organizations moved to open parking. A story appeared in the New York Times last week about Bob Nardelli, former CEO of Home Depot, and how he used to provide daily catered lunches for the company's officers on the executive floor, free, while the talent, aka "worker bees," ate in the cafeteria. This separation of leadership from the people who do the work is a fatal flaw for an organization. It sends the wrong message—it reeks of elitism. If we believe in our talent, if those we hire are people with brains, skills, and potential, why would we separate ourselves from them? Why wouldn't a leader see the advantages of getting to know the people who carry the brand of the organization and are vessels of great ideas? As Tom says, "If we would only bother to ask, the answers are on the front lines." Frank Blake, the new CEO of Home Depot, is quietly changing Nardelli's stance. The executives will take the elevator down to the cafeteria and eat with everyone else. I certainly hope that they don't all sit at one table and create a different kind of divide. Having lunch with associates is the best way to build a relationship, to get to know people, and to find out what is really going on in the "world" of your organization.

Apparently, the value of talent wasn't clear under the old regime at Home Depot. Older, experienced workers were "alienated," and Home Depot lost its edge on knowledgeable staff. It would appear that the ambition of the company got lost in the desire to make faster profit, the value of talent was lost in an attempt to save dollars, and, therefore, it should come as no surprise that the performance of the organization began to suffer.

As the New York Times wrote, "People who have met with [Mr. Blake] since he became chief executive, or have been briefed on these meetings, said he planned to improve the retail business by single-mindedly focusing on employee morale and customer service in the chain's 2,000 stores." Mr. Blake is going to focus on the talent and reset the ambition of Home Depot back to the basics of providing service and a great experience to shoppers. It's to be hoped that he can correct the talent problem, because until the talent can trust leadership and get on board with service as defining the brand again, any other changes won't matter much.

Some key questions to ponder: Are there any elitisms in your organization? What are your opinions on how leaders should interact with the talent of the organization? If you were an employee at Home Depot, what would it take for you to believe?

Val Willis posted this on 02/12/07.

Comments

"What are your opinions on how leaders should interact with the talent of the organization?"

It's amazing how we slip into jargon. We're not dealing with "the talent." We're dealing with the people who have the talent and all the other things the flesh is heir to.

Posted by Wally Bock at February 12, 2007 3:54 PM


If leadership is a relationship (and I believe it is), then there should be frequent interaction so that folks have a chance to know them. this does not mean execs have to befriend everyone, they just need to be known. If they are unwilling to interact, they will be known by their reputation and second/third hand information. this is rarely positive. As far as Home Depot, I think a total turnover of the board of directors might help. And if there is that kind of cash laying around to pay Nardelli and Donovan, an across the board increase might be in order. Interestingly, although it may not be fair to the remaining employees, I have switched my buying allegiance to Lowes.

Posted by Mike Neiss at February 12, 2007 4:43 PM


A couple of years ago I had the unique opportunity to work as German guy with this terrific company. Fortunately I had the chance to meet the founders who give the company values, spirit and unbelievable power. Their people would die for them.
Bob Nardelli came and was celebrated by Wall Street and many more people. Sorry, guys like Larry Bossidy, Jack Welch but also Tom Peters believed in his strenghts and capacities too. Only HD associates complained about the culture change and lost of identity.
Today Bob is history and everybody knows why. It is always the same. After the event is everybody on the right page. I believe that Bob had a lot of good strenghts but this famous company needs now people who remember the good old days. People like Farrah, Marcus and Blank who really could make their people crazy in the best possible way. I ever love this terrific people working there. Bleeding and breeding orange forever.

Marco Deja, Germany

Posted by Marco Deja at February 12, 2007 5:13 PM


in a previously life i worked for a company where managers were given the same perk. while my direct manager bemoaned the fact he took part none the less. sometimes these "working lunches" stretched to 90 plus minutes and needless to say none of the talent was given leeway for coming in late or credit for staying late and eventually many of us left. while this company made tons of cash and was an industry leader turnover in ops and management was high. i also worked for a company where beer-thirty was alive and well and it was not uncommon for the president to take anyone from the warehouse on up to lunch or dinner. while this company was not financially strong many of us drank the kool aid and made it work.

Posted by tom wilson at February 12, 2007 5:17 PM


great read val. i used to get so upset while ATTEMPTING to shop at Home Depot. Most times there were not enough people on the floor, and the times they WERE properly staffed, it seemed no one was willing to help! with that kind of front line treatment, i guess thats the kind of customer service you can expect!

Posted by rachel at February 12, 2007 5:27 PM


Interesting comments from all of you. Yes Wally, we are dealing with people who bring the talent, skills and their entire being to work.

Rachel, I believe it is difficult to have highly engaged and responsive associates if they don't feel valued. From my experience in running customer service operations, when you let people know you care, when you treat them equitable and you spend time with them, they will outperform your expectations. If associates think that the leaders don't care about them, then it is hard for some to care about the customers. With that said, most people respond to the person that they report to directly, so I wonder how far down the chain this mentality may have permeated?

I sense the new CEO is on the right track as he is focusing on people first!

Posted by Val Willis at February 12, 2007 5:46 PM


Nice riff Val. While certain promotion-related privileges can be effective motivators for performance, there certainly shouldn't be any sense of elitism in an organization. Such carry-on will only breed alienation and contaminate a collaborative environment.

Posted by Tom O'Leary at February 12, 2007 9:02 PM


Are there any elitisms in your organization?

My personal pet hate is the inequitable travel policy. Most senior execs get to travel business while everyone else travels cattle class. As if it's all right for the lesser beings to arrive at their destinations tired and unprodcutive.

What are your opinions on how leaders should interact with the talent of the organization?

One issue with many leaders I see is their inability to drop the work mask and let the human being peek out. I often ask managers - "would people say you are fun at work?" The answer is invariably no. I then ask "Would other people say you are a fun person on the weekends?". Yes is the usual answer.

This dichotomy that leaders feel forced to live unfortunately reinforces the great divide between them and their teams. Acting like their weekend selves helps break down the barriers - well it's a start. Then they need great people skills....

Posted by Megan at February 12, 2007 11:16 PM


At RMC-Duntroon training officers were required to sit at a table of cadets. This way the cadets got to "meet" the officers outside of the classroom and training range and heard great stories.

Posted by Simon at February 13, 2007 4:52 AM


Many law firms have two separate holiday parties: one for lawyers, one for "non-lawyers". The lawyer party will be at a trendy hotel, the staff party will be in a banquet room of a restaurant. This practice screams of elite treatment. The lawyers will claim the staff prefers to party without their bosses around (a justification)...the staff will tell you this stinks! This happens in firms, companies, universities, etc.... because those at the top get to make the decisions, and can justify their actions in their own mind all day long.

Posted by Thom Singer at February 13, 2007 6:36 AM


The need for more "managing by walking around" seems evident in situations like these. By separating themselves from their staff, higher ups breed contempt and add to the number of actively disengaged employees. I applaud Mr. Blake's focus on his front line (I'm sure Trevor would too), and I hope that this sets some trends that other businesses follow.
Wally makes a good point about people having talent, along with "all the other things the flesh is heir to." It is important to acknowledge that flaws in people are imminent, but by hiding in private lunches/separate parking lots/holiday parties, the flaws (or strengths) of the staff will never be properly recognized or addressed.

Posted by Nick Adams at February 13, 2007 8:35 AM


As Robert Townsend, former CEO of Avis said in his book about executive reserved parking spots near the front door: "If you're so bloody important, you better be the first one in the office. Besides, you'll meet a nice class of people in the employee's parking lot."

Posted by Bruce Gerhardt at February 13, 2007 10:29 AM


1. "sense of elitism" - perfect Tom O [as you inhale dark chocolate lakeside] - "talent" with me dines with fine cloth napkins - that way post-scarfing they can use said nappie to polish down my Lexus ...

2. Key deal seems to be that Home Depot Board did NOT give Frank Blake any $300M golden parachute op post Depot CEO "leadership" ...

Posted by sean_elitism at February 13, 2007 11:05 AM


Where I come from the term "Talent" refers to something else (attractive members of the opposite sex) - brings a whole new dimension to "Talent Reviews" and "Top Talent Programs"

Posted by PaulH at February 13, 2007 2:01 PM


Some of the most damning elitism I've witnessed is the subtle message of "the rules don't apply to us." I've seen executives lose more respect over the fact they ignore the dress code while the "worker bees" are forced to follow it than I ever could have imagined.

In organizations, perceptions really are king.

Posted by Cheri Baker at February 13, 2007 2:35 PM


The antonym for elitism is Ricardo Semler, a bottom-up leader, who created one of the great experiments in workforce democracy while chief executive of Semco in Brazil. His books "Maverick" and "The Seven-Day Weekend" tell the story. http://www.amazon.com/s/ref=nb_ss_gw/104-1914373-0623960?url=search-alias%3Daps&field-keywords=ricardo+semler&Go.x=0&Go.y=0&Go=Go

Posted by John O'Leary at February 13, 2007 9:04 PM


I’m a bit confused and concerned about the use here of the word “talent.” To my mind it means “a special ability” and I’m not sure if this thread is using the word to ask, “How does top management connect with the sub-set of its people who have a special ability?” It seems that we’re using it to mean front line staff or even in a wider and woolly sense that, “We’re all special and we’ve all got a talent so we all deserve to be treated as such.” But if we're really asking how we manage talented people, then surely part of that is by treating them a bit differently from B and C performers?

So is this thread really asking: “How does top management connect with front line staff?” or “How should senior management ensure it doesn’t become isolated from junior management and the shop floor?”

And isn’t part of the answer to all these questions, “By ensuring it asks the right questions of the right people in the right way.”

Posted by Mark JF at February 14, 2007 5:56 AM


Home Depot is aptly named because its name says it all really... This is the place where people go to stock up on Home improvement supplies... It is a Home Depot for them... At Home Depot there is another group of people too - this other group is there to stock up the shelves with Home improvement supplies....

Home Depot therefore has two groups of people who benefit from its existence... The customers benefit because they pay at least 10% less than they otherwise might in a Main Street Hardware Store for their supplies... The employees benefit because they get a pay check... It is that win/win circumstance that helped its founders to form a "corporate culture" which enabled it to grow and grow and grow...

However there was a "fatal flaw" developing in this business around the time Bob Nardelli was recruited... The fatal flaw was that as Home Depot grew it did not develop the contemporary business processes and systems it needed to properly sustain its corporate culture...

This story is a common one.... Ask Toys R Us, KMart, JC Penny, etc... Success brings issues and some of these issues are business processes and systems based or related issues... Bob Nardelli was recruited to rectify these problems... From all published accounts of this time at Home Depot he tried to do just that and he made excellent progress with his mission...

I trust that Home Depot now has the business processes and systems it needs to enable both the groups of people it serves - customers and employees - to get the very best deal possible from the place....

Richard

Posted by Richard Lipscombe at February 14, 2007 6:14 AM


canadian pharmacies viagra 1. Richard & Mark - I now visit Lowes only due to Nardelli $210M perverse payout ... so they can be "processes and systems" adept to Heaven - still Lowes now for me ... 7 Day Weekend @ Lowes!

2. ... and Frank the new guy - if he bails in 2 years with $200M - now that is "talent" - fool me once your fault - twice & is my fault ...

Posted by sean_lowes_fan at February 14, 2007 8:55 AM viagra wholesale uk


3. ... and USA Clintons as classic elitists - $-0 negative net worth entering presidency - now $15M+ and don't call unless you have $50M+ - plus carpet bag Arkansas talent-less New York senator status win only because of Giuliani radical sudden illness ... FOR ... friends of Richard L down under ...

Posted by sean_talent at February 14, 2007 1:37 PM


Since you asked, were I an employee at HD what would it take me to trust again?

Managers who came under the sway of the Nardeli gang would have to publically (to their work group) admit where they went wrong and how they are going to be with them in the future. These employees are probably shell shocked and have been under a lot of fear. There need to be some cathartic meeting to allow them to share how they felt in the gulog and get assurances that thing will change and in what specific ways they will.

As always, they need to include the staff in visioning and articulating the new ways.

Posted by Doug F. at February 14, 2007 6:31 PM


sean_talent

As you have sensed (correctly) I went into our national political sphere with $0 and came out with $0 and I worked for the mob who are SUPPOSE to be the ELITISTS - go figure!!

Yeah that's right I was so proud to still have my integrity intact when I left politics - what sort of talent is that?

The opportunities to make mega $ were literally everywhere (and we are merely a Banana Republic at the rear end of the world)... Alas I failed dismally BECAUSE I did not have a scintilla of the talent needed to take advantage of them...

I was a minimalist then to my purpose and I am a minimalist still...

viagra generic overnight

But I do have great stories to tell my boys (you know I love to hear them say "tell us the one about...... again Dad!"). They are all the same story, of course, because they are all about how their Dad (yeah the modest super hero) saved their nation from the "unintended consequences" of the nation's best public policy formulators and implementers...

Coincidentally Sean I never shop at Home Depot when I am in the USA but I do shop at Lowes (mind you they have had serious problems too).

We are all "prisoners of our own device"...

Richard.

Posted by Richard Lipscombe at February 14, 2007 6:34 PM


RE: management by wandering around.

Nardelli beleived he was doing that, visiting several stores a week as a "mystery shopper." I think he missed two important things. First, it doesn't build team spirit if, when you drop in, you do so to find things that need correction. And, second, the troops always know you're coming.

Posted by Wally Bock at February 14, 2007 8:37 PM


1. Richard - agree that Lowes is NOT Heaven either vs. Home Depot

2. Media here decreed Barrack Hussein as "talent" - he needs your political capital - major snafu's insulting Australian president/troops & USA troops

3. Minmalists prevail - live on $10K / year & invest the balance - while living the 'vow of luxury' in 3 fun homes & 1 radical black leather jacket

Posted by sean_luxury_vow at February 15, 2007 9:17 AM


Sean_black_leather_jacket

Your upcoming Presidential Campaign probably needs the "injection" (bad choice of words) of a real talent like Hunter S Thompson (see Fear and Loathing in Les Vegas)...

Hunter S Thompson was a legendary journalist in his time. He was a truly "unreal" talent - it is claimed that he actually understood all eight of President Nixon's multiple personalities... One day on the Campaign Trail the President offered him a lift in his car... Imagine his delight! What a scoop for a "radical flak jacket" journalist - they talked for a long long time... How good is that... To have all that time with a President on the Campaign Trail - a man who was carefully managed (by his staff) around his need for sleep even during the day ... Yeah Hunter S Thompson the most radical and possibly the most feared journalist on the planet and President Richard Nixon just hanging out together and talking............... FOOTBALL!

I just love A grade politics - there is just so much talent on the playing field when it is happening and they have so much class... But is there any A grade or Top shelf game of politics being played out in your country today Sean? Is the political talent there? Do they know how to play the game of politics at the top level?

I sure hope so given all the "black ice issues" facing the world in the next Presidential Term (2008 - 2012)...

Look after that "radical black jacket" it sounds Hunter S cool..

Richard.

Posted by Richard Lipscombe at February 15, 2007 3:15 PM


viagra mg Nick – thank you for the reference about ‘front liners’ – I’ve been away for a few days and sorry to have missed this brilliant discussion to date. I’m really pleased I’m not alone in thinking ‘front liners’ know all the answers all the time. I wrote this in my book - says it all to me.

“Effective leaders are generally not so interested in the detail of process but they need to be assured there is a process. Paradoxically, the effective leader will be interested in something that may appear very trivial to “non leaders.” For example, many of us have worked in organisations that proclaim:

“We value our staff”
“We are an equal opportunities employer”
“We value diversity.”

pfizer canada viagra

Picture now a wet, cold and dark winter morning, a 6 am early morning shift for the cleaner who parks her car in the staff car park 200 yards from the staff entrance. As she fights her way through the cold wind and rain to the entrance she notices the empty car park spaces reserved for Directors, Consultants and Chief Executive, positioned immediately outside the main entrance. She cannot help thinking the mission statement somehow just does not ring true. The effective leader will be interested in the feelings of that cleaner and even if the leader cannot solve the parking problem, the fact the he or she is interested at all, will spread around the organisation quicker than the speed of light. Quite often the leader will also solve the problem of the car parking as well. Small things are important – leadership is not only about the big picture”

Posted by Trevor Gay at February 15, 2007 5:36 PM


Twenty years ago I worked for Wang Labs, which had incredible us vs. them perks."They" had covered parking, an exec dining room, a clothing allowance, far better travel (flights, hotels) - you name it. At one point,when Wang was entering its death spiral, they cut back on light bulbs and cleaning for those of us in cubicles, but still cleaned the offices of directors and VP's nightly. Not that this was the reason that Wang Labs is no more, but it was indicative of their hierarchical mentality which absolutely did contribute to their downfall.

Posted by Maureen Rogers at February 15, 2007 6:34 PM


If the pay is good and i feel valued for my skills, i don't really care if the CEO & other executives have lunch with me or not.

Maybe leadership & worker interaction would really be needed in certain type of industry (like home depot where the product you sell is the "customer experience".)

Ultimately, i think it comes down to the character and values of the leader. If the leader is someone who has a great strength of character, the company will respect him - does not matter if he/she has lunch with me or not.

Posted by Namith at February 15, 2007 8:41 PM


1. ... and Richard "talent" too perhaps wears organic cotton black Levis ... with Wal$mart sandals

2. ... "black ice" is well said - "talent" today must be 007 whip smart & eager to arrest the local money-launder cell ... later sipping Cristal

3. ... ah for the simple presidential "talent" USA days of facing down & velvet destoying the Soviet Union

Posted by sean_organic_levis at February 16, 2007 9:19 AM



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