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Zenefits and the Problem of the Chief Enabling Officer

Yesterday the Wall Street Journal had an article about the rowdy culture at Zenefits, a health insurance brokerage based in San Francisco. They'd gotten their hands on an email to employees which read, in part:
"Do not use the stairwells to smoke, drink, eat, or have sex. Yes, you read that right."
The article detailed the difficulty that new CEO David Sacks is having in terms of curbing the out-of-control culture there. In memo after memo, says the Journal, he's been urging employees to act in a way that's more suitable to the type of work they do - but frankly admits “it is too difficult to define and parse what is ‘appropriate’ versus ‘inappropriate’ drinking in the office.”
Yet Sacks appears very clear that the company's cofounder and former CEO, Parker Conrad, is to blame for its problems. As the newspaper reported several weeks ago, the new CEO sent an email to employees that read as follows:
“The fact is that many of our internal processes, controls, and actions around compliance have been inadequate, and some decisions have just been plain wrong. As a result, Parker has resigned.”
Buzzfeed provides a more vivid portrayal of the company's dysfunctional culture, complete with Instagram photos (the below is a partial screenshot from the article, showing former CEO Parker Conrad; original source @sidrashaw on Instagram). 
Buzzfeed offers a different quote from Sacks' communication to employees - one that speaks directly to culture:
“We must admit that the problem goes much deeper than just process. Our culture and tone have been inappropriate for a highly regulated company.”
The problems at Zenefits offer a teachable moment for the rest of us, in particular when it comes to the significance of organizational culture. Because more and more, business professionals in the United States are coming to understand what European brand professionals have known for a long time:

Your brand, your business, and your organizational culture only appear distinct; in reality they are dimensions of the same reality.


In short, to diagnose a company's problems, one needs to take a holistic perspective - much like a physician is most effective when working with other specialists, to diagnose a condition in the context of all the symptoms a person is experiencing.
So all manifestations of dysfunction are related:
  • Outlandish behavior that becomes part of the corporate norm - sex in the stairwells, drinking to excess in a work environment
  • Public shaming and blaming, with top executives throwing shade in public
  • Negative media coverage by mainstream outlets
  • Use of written communication to manage problems that would normally be discussed face-to-face
  • Inability to establish boundaries for appropriate behavior
  • Brutally long workdays over an extended period of time
  • Excessive mingling of professional and personal relationships, or use of professional relationships to enable out-of-control personal behavior
  • A prevalence of shortcuts and workarounds that external parties would find questionable 
  • Need for external authorities to intervene
Of course, this list heavily emphasizes culture, and culture is not all. But it is a deeply misunderstood and undervalued aspect of organizational life. To wit: People with "hard skills" are normally prized and promoted, while people with "soft skills" tend to be devalued and taken for granted.

I would like to propose a different model: The CEO as "Chief Encouragement Officer." That the job of the company's leader is in fact to serve as a parental figure who nurtures and disciplines employees forward. 

Too often corporate culture is an aside - it's "what we do when we solve all the other problems." But if you look at the actual "nutrition pyramid" of organizational life, it is the unconscious that sustains all employees. 
Recently Brandergy.com founder Vincent Wright hinted at this when he wrote, right here on LinkedIn ("CEO: Chief Encouragement Officer," Dec. 3, 2015):
Why should we work for anyone who discourages us? How CAN we do our best work for anyone who discourages us? - Vincent Wright, Brandergy.com
Is it incidental that Vincent - a hardcore social networker and born Chief Encouragement Officer, whose motto on LinkedIn is "Stay Strong" - does most of what he does for free?
Again, encouraging people isn't seen as leadership.
I would argue that the entire substance of leadership is encouraging people - not randomly, not blindly, but intelligently - to do the right thing, to stay on the path. This requires not only emotional intelligence but also business insight and operational skill, to know what the company's future needs are and to align all the talent within to achieve it.
David Sacks, the new CEO at Zenefits, seems to have this skill. But it should not be incidental or accidental.
If you are a recruiter and you're scouting for CEOs, stop looking at where they went to MBA school. Stop emphasizing that blue-chip firm where they went to every happy hour, shined the boss's shoes and broke their backs interning. 
 Look for people who give a damn about other people.
The rest they can pick up along the way.
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Copyright 2015 by Dannielle Blumenthal, Ph.D. Dr. Blumenthal is founder and president of the consultancy BrandSuccess and co-founder of the brand thought leadership portal All Things Brand. The opinions expressed are her own and not those of any government agency or entity or the federal government as a whole. You can contact Dr. Blumenthal on LinkedIn or here.
Cover photo via Wikipedia. Paternal bonding photo also via Wikipedia.

You Never Know Who You're Dealing With

I accepted a new position last week and it will involve once again being a supervisor.
I've been preparing for the role by asking seasoned managers for their input on how to hit the ground running, and for 360 degree type feedback about their perceptions of me at work.
You can never ask enough. Ask, and ask, and ask.
And I was walking past the desk of an administrative assistant I am friendly with and she had a few minutes. So I asked if I could "interview her."
After about thirty seconds I realized that I was talking to someone with extensive managerial experience, in the military and in the private sector. 
For months and months she had seemed to belong to a certain category, but after all this time it was clear: I didn't know who I was dealing with.
It's funny, I think people are naturally this way, but branding has made us even worse. We've become so accustomed to making quick and simple decisions. We need to; all of us suffer from information overload. So it's much easier to think: look at the shoes, she must be rich; look at his coat, he must be poor. And then subtly adjust our reactions accordingly.
Remember that movie Trading Places with Eddie Murphy and Dan Akroyd? Eddie was a con artist and Dan was a spoiled an incompetent rich kid, until each of them assumed the position of the other.
Or Freaky Friday - the original with Jodie Foster and the remake with Lindsay Lohan and Jamie Lee Curtis. Mom and daughter switch bodies, but nobody else knows.
Remember Big, with Tom Hanks? That piano scene in FAO Schwartz?
You never, never, never, never know who you're dealing with.
It is so frequently said at work that the person who's your colleague today may tomorrow be your boss. You knew that.
But how often do you really think about this principle in everyday life?
There are a lot of stories that bear telling. Here are just a few more.
In the hall I told a normally quiet colleague about the new position.
"I know," he said. "I knew it already."
"How did you know that? I didn't even tell you," I said.
"Because you were disinterested last week. It was in the air."
Do you realize how closely you are being observed? Do you know who is observing you? Do you respect the depth of their perception?
Here's another one - a memory of the nursing home where we used to visit my husband's mom, before she passed (may she rest in peace).
The residents had private rooms. Each one had a shadowbox on the outside with personal photos, a momento, whatever they chose to put there.
It was easy to dismiss those shadowboxes because they were smallish and all of them looked the same. Who would stop and inspect someone else's unfamiliar pictures?
But one woman had her entire door plastered with newspaper clippings. These were impossible to ignore. They lauded her career as a decorated veteran of the U.S. military, the first to do this and the most accomplished at that.
One time I peeked my head inside, just a little, to see who this woman was. As expected she was small and skinny and I couldn't see her face but her body was inanimate.
In the lunchroom I wouldn't have picked this woman out of the crowd. Nor any of the residents especially. But I knew Mom, and why she was so special to me. 
I don't know you, and you don't know me. 
Don't assume anything about anyone.
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Copyright 2015 by Dannielle Blumenthal, Ph.D. Dr. Blumenthal is founder and president of the consultancy BrandSuccess and co-founder of the brand thought leadership portal All Things Brand. The opinions expressed are her own and not those of any government agency or entity or the federal government as a whole. You can contact Dr. Blumenthal on LinkedIn or here.
Photo credit: John Iwanski/Flickr (Creative Commons)

Talia Jane Just Set Yelp On Fire


I don't know this young lady from Adam or Jane. 
I don't know a thing about Yelp's corporate culture.
But as an outsider looking in, I can tell you the brand of this company just went southward today - significantly. As an employee got fired after writing a negative review of her salary.
It's a bit hard to understand. It looks like a temper tantrum. Not a reasoned response to one employees' perhaps impulsive move.
Think about it. The entire mission of Yelp is to promote customer reviews. More broadly, to encourage the customer to "talk back" to the merchant who sells them goods and services.
Here is an employee doing just that - she is reviewing the values of her company. Maybe in a cheeky way, but nevertheless in line with all the things that Yelp! has taught her.
Now, they've canned her.
And as we all know, in any traffic accident both parties look bad. 
But in a corporate traffic accident, the rich CEO always looks worse than the employee.
It's always easy to stand outside a situation and point fingers. We're not there; we don't know if she was trouble from Day One.
All other things being equal, though, if I were in charge of that company I would have talked to this young lady in person. And I would have put that discussion on Periscope.
If she turned out to be halfway intelligent and an otherwise good employee, I would have turned her into a manager, a director, Ombudsperson of Employee Complaints or maybe Boss of Dealing With Angry  Customers.
The fatal mistake that Yelp made with her was to move too abruptly and fail to consider the brand.
Where they are going to take a brand hit for this, she will only go upward.
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Copyright 2015 by Dannielle Blumenthal, Ph.D. Dr. Blumenthal is founder and president of the consultancy BrandSuccess and co-founder of the brand thought leadership portal All Things Brand. The opinions expressed are her own and not those of any government agency or entity or the federal government as a whole. You can contact Dr. Blumenthal on LinkedIn or here. Image source: Screenshot of Yelp logo.