Four Steps to Save $69 Million

For some industry watchers, it was only a matter of time. Former Fox star Megyn Kelly crashed at NBC. Media analyst Bill Carter said network executives might have been blinded by "glamor glare. That's the effect that sometimes emanates from a glowing-hot-on-air talent. It can lead to temporary loss of vision." It's been reported that Kelly's position in NBC's blindspot may cost up to $69 million.

After CNN posted “Megyn Kelly was never a fit for NBC” in a headline, I began to think about how one should counsel management. How do you cut down the “glare” and improve the ability to peer into blindspots?

It’s clear that one can’t hope and wish for good intentions to pay off. There’s work involved. “We need to use both the gut and analytical approaches to decisions, particularly for high-stakes stuff. And we need to do analysis well,” said Ken Shotts, professor of Political Economy at the Stanford Graduate School of Business speaking on matters unrelated to Kelly. Neil Malhotra, another professor of Political Economy at Stanford added, “Very high-functioning people don’t often understand that they use their intellect to rationalize their gut.” 

So, pulling from my mostly successful track record in building teams, here are four filters for evaluating job candidates:

1.   Find a Cultural Fit. Team members need to share values, and a common commitment to the mission and vision of the organization. It does not mean hiring clones. Diversity of background and diversity of thought adds important perspective and helps sharpen ideas.

2.   Ensure Brand Consistency. While every team member is an ambassador, high profile individuals have a larger impact on the organization’s brand. Carter reported that network’s top news executive, Andrew Lack, “seemed seduced by the idea of stretching the appeal of NBC News.” There’s a big difference, of course, between stretching your connection – or modifying the organization’s identity – and breaking it. Obviously, Kelly’s scandalous racial comments crossed an undeniable line.

3.   Understand the Difference Between Aptitude and Intelligence. Kelly is smart – no question. Carter, who said she was “icily appealing on Fox News as a solo act,” was a flop when pushed “to emulate Oprah Winfrey by playing warm and wise.” I’m sure we can all point to capable people who floundered in the wrong environment.

4.   Avoid Groupthink. Groupthink is not just thinking in groups. Dr. Irving L. Janis, as a research psychologist at Yale in 1971, said it’s “a mode of thinking that people engage in when they are deeply involved in a cohesive in-group, when the members’ striving for unanimity overrides their motivation to realistically appraise alternative courses of action.” Bottom line: Avoid yes-people and allow alternate, even unconventional, views to be aired.

The consequences of overlooking these steps can be devastating. And I don’t only mean the $69 million “oops” in the Kelly case. There could be anything from grousing and low productivity to reputational damage and loss of business.

It’s true that people make or break an organization. Rushing a decision to fill the box is a mistake. It’s essential to take the time to plan, assess, and question when building a cohesive, ethical, high performance team.

Between posts, I invite you to follow me @pauloestreicher.

Chill Pills All Around, Please

Outbursts and Meltdowns Punctuate the Week

Civility was in particularly short supply this past week. Representative Joe Wilson of South Carolina shattered precedent and decorum by yelling “You Lie!” at President Obama during a joint session of Congress. Tennis star Serena Williams threatened a line judge at the U.S. Open with bodily harm following a blown call. Rapper Kanye West grabbed the microphone away from Taylor Swift, trampling what was to be her acceptance speech at the Video Music Awards, to disagree loudly with the judges’ choice. Conservative “Tea Party” events protesting big government saw slogans that included "Unarmed, this time," "Impeach the Muslim Marxist" and "Obama is trying to kill my mama."

It seems that these types of breakdowns in behavior (and good sense) are becoming more strident and are occurring more often. Why?

There is often little, if any, consequence. One reason that we have so much boorish behavior and repeat offenders is that people get away with it. Most people and organizations aren’t willing to set limits. There are too few that will object when “the line” has been crossed.

You can chalk it up to emotion. We’ve heard them all this week: “I’m a very passionate person,” “It was just a spontaneous outburst,” “My emotions took over.” Sorry folks. These are tired and wholly inadequate excuses.

People can blame the “fringe.” Another convenient excuse is to say that the particular incident wasn’t sanctioned. “We can’t be held responsible for the actions of individuals” goes the refrain. Fine. But did anyone speak out? Did anyone say you’re at our event and you’re out of line?

There are some important bottom line considerations in all of this:

Behavior still counts, at least for some. Unless you want to be known as a beast, you are harming your personal brand – or the brand of your organization – by engaging in uncivilized behavior. We all know that part of successful reputation management is setting the proper tone for communication.

Examples are being set. Like it or not, these high profile offenders have fans, they have constituents. They’re role models. Without any impediments, these behaviors are bound to be emulated and propagated.

Bad behavior can incite worse. With each unchecked incident, the line separating good behavior from bad gets shifted. A new, potentially dangerous norm is set. In the most extreme case, it seems that the threshold from outburst to threat or from threat to violence is getting unsettlingly easy to breach.

Manners can trump message. At the core, though, it’s the message – the actual facts of the matter – that get lost. Are we talking about the tennis play between Williams and Clijsters? Swift’s music video? In the case of politics, we’re pulled away from an actual, healthy debate and forced to discuss the spectacle. Moreover, the public is often asked to take a side. The “if you’re not with us you’re against us” mentality still runs deep in enough of the population to threaten compromise or legitimate disagreement. This helps to crush the middle ground and polarize opinion further.

I hope the shrillness and the intolerance can be mitigated. It’s not like this is a new problem, either. It’s been discussed for millennia. Remember “Love thy neighbor as yourself” (the ethic of reciprocity)? It’s time to deliver.

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Keeping Them Guessing

A Sometimes Risky Strategy

Politicians aren't products (exactly) but how would a marketing person dissect the surprise resignation of Governor Sarah Palin? Some take her at her word and others are convinced of hidden agendas. Why this sharp divide?

Some insights might be gained by examining the success factors that allow Apple to use mystery to drive interest and anticipation. Under the leadership of Steve Jobs, they have been brought back from the edge of oblivion to become the hallmark of that intersection between tech innovation and design. Feeding the cachet of the Apple brand has been their clever use of silence and, sometimes, misdirection. (Not so clever was the decision to keep Jobs' liver transplant a secret. True, they probably avoided some potential shareholder panic but disclosure would have been the appropriate path.)

How does Apple pull this off? How can they keep their plans quiet without infuriating their customers, the news media or investors? Sure, there have been glitches but mostly:

They deliver. Their products have been deemed to be worth much more than any of angst or frustration caused by the purposeful stealthiness. And, once a breakthrough device is delivered, they follow through with incremental improvements and extensions.

It's become a sport. With a successful track record and an established method of rolling out "must have" products, they've created something of a game -- a bit of cat-and-mouse. Their publics fill cyberspace with speculation and discussion in attempts to figure out the products' specifications and when they will be delivered.

Their appeal is broad. Frequently representing the leading edge, there is wide interest in Apple's exploits. Sure, there are people who don't care or refuse to get caught up in the Apple aura. But a key to the success of their strategy is that there are few who are engaged in any active dislike of the company or its products.

As for Sarah Palin, the now soon-to-be ex-Governor of Alaska did not directly address her plans during her press conference the other week. In follow up interviews, she repeated that she can be more effective as a private citizen. Also, fighting ethics complaints and the media have taken a financial toll on the state and her family and, because she already decided not to seek re-election, leaving now would be in everyone's best interest.

So, was this about spending more time with and shielding her family, digging out of a financial hole with book deals and speaking engagements, gaining a national platform by becoming a conservative TV commentator, gearing up for a Presidential run in 2012, all of the above or something completely different? While most of us were left to wonder, Republican political consultant Mary Matalin was convinced that Gov. Palin's move was "brilliant." Not so sure were other key Republican figures. Former Arkansas Gov. Mike Huckabee said her mid-term move "simply doesn't make sense" and Karl Rove, former President George W. Bush's counselor, said it was a "risky strategy" if she had any designs on elected office.

Michael Carey took a harder line in his commentary in the Anchorage Daily News: "We are left to guess. The only thing we can be absolutely sure of is this: Palin did not tell the truth when she said she is leaving for the good of Alaskans. She is leaving for her own good."

In response to all of the criticism, Gov. Palin said, "You know why they're confused? I guess they cannot take something nowadays at face value."

So, why isn't she getting the benefit of the doubt? Why is she in a defensive posture and repeating the words "I'm not a quitter, I'm a fighter" over and over? Why is the web overflowing with references to her "epic fail"?

I submit that we can use Apple's success as a guide to help us judge if "keeping them guessing" was a wise strategy:

Has she delivered? She made a stunning entrance onto the national scene with her selection as John McCain's running mate but, it was a bit like a Super Bowl ad with no marketing campaign to follow. While she can take credit for some accomplishments as Governor, there is some consensus that perhaps the most important work in Alaska is left unfinished.

Has Palin speculation become a sport? The Governor has, indeed, generated discussion around the world. However, the substance and tone are not entirely sporting -- not with polls asking whether or not she should run for President or "disappear."

Does she have broad appeal? Most political pundits agree that her support lies only at one end of the political spectrum. This polarization may ensure that an active set of detractors will always be second-guessing her intentions. And, questions will remain about the ethics of asking Alaskans to elect her Governor and then leave in a relative rush just a year and a half later.

The bottom line is that Apple can keep us guessing. They have cultivated their publics and grew from one success to the next. For Sarah Palin, one never knows but, without the time to fully bank political capital or build her reputation and public trust, she may have made one guess too many.