Recently, I decided that I needed to detox. With all of the indoor and outdoor pollutants that surround us, I figured my system could use a little help getting rid of all the stuff it doesn't need. Apparently, the pundits don't have a lot of good things to say about fast food and white flour. They nixed those first in my detox diet. Talk about a jolt to the system.
But it did made me think. Maybe our businesses need a detox of their own. You know, a program to get rid of all the stuff they don't need? Plus, a little jolt to wake them up to what the American population needs from them.
Here's my short list for an American Business detox diet:
First, cut out all Yes Men — those bobble-headed direct reports who aren't or can't be honest about what's going on. Upper management may not always like it, but they need people who are willing to challenge them. And they need to listen to these people. This doesn't mean that upper management will do everything employees tell them to do, but a lot of good advice comes from the most unlikely of sources. Like the receptionist.
Second, really pay for performance. I can't count the number of performance reviews I sat through or conducted that didn't result in pay for the employee. If the guy is good, for goodness sakes, pay him for his hard work! Nothing is more disheartening than for employees to know that no matter how well they do their job, they're not going to be fairly compensated for it.
Third, end micro-management. Management cannot know every move that their direct reports are making, nor should they want to know. Hire good people who you can trust to do the job. Fire the ones who can't. Rocket science this is not. Common sense? Bingo.
Fourth, stop reorganizing every time you put in new management. Reinventing the wheel is only good when the wheel is broken. But countless businesses put in new processes every time a new guy takes the helm. It's a common process used by the new guy to make sure his boss knows he is working, but there is a better way to get this information. It's called the bottom line. If the unit is making money, the new guy is working.
Lastly, eliminate over-the-top CEO pay. Yes, I'm a CEO and I like to be compensated well for my work. But CEO compensation went way overboard and often it didn't matter if the company made money or not. Enough! Compensation should be in line with the profitability of the company. Profitability should be based on goods and services that are sold in the open market not on how many people you can lay off. It's time to get back to basics.
So, there you have it. A detox program for American Business. Any takers?
Yvette Scheiber is the CEO of a Houston-based marketing and public relations firm.