In The New Human Capital Strategy, Bradley Hall, a consultant and instructor to Duke Corporate Education, advances a view we’ve long known about the importance of managers in driving corporate culture and in ensuring great performance. Hall says that for the world’s leading quick service restaurant chain, every restaurant is essentially the same except for location — same menu, same prices, store layout, etc. I can’t agree with his assertion of “sameness” because we know that this organization is among the leaders globally in understanding how to customize its store locations, menu offerings and more to meet the tastes and expectations of customers. Hall does, however, assert a critical point about what differentiates a low- from a high-performing store unit: the manager. He says the company can take a failing store, import a winning manager, and with basically the same crew of associates as before, the restaurant will begin to recover in a month. Great managers, he believes, deliver great results.
Hall’s view is one I’ve heard before from other intuitive leaders. One in particular, Mary Alice Taylor, who served as senior vide president at FedEx in the ‘90s, even went so far as to test her theory by relocating successful station managers into more than two-dozen underperforming stations in a drive to recapture more than $134 million in annualized costs related to profitability, reduction of turnover among customers and staff, and a critical push to achieve and exceed operating objectives while maintaining a non-union status. As with Hall’s point, what we learned in this experiment is when you move good managers into failing operations, they deliver. “In FedEx,” an executive told us when we interviewed him to understand the forces that drove the internal brand, “the local manager is the corporate brand. They live the brand and define it.”
Winning managers understand the critical role they play in connecting senior executives to front-line employees. They know they are the most trusted channel for communication in companies everywhere; in fact, I like to say that when a manager and her report meet to discuss a change or pivotal event, “the rubber meets the road” when they engage together in this hallowed moment in time.
Great managers know they must “translate” what they’re told so that it makes sense to the people who work for them. Great managers truly listen for feedback and channel it to their supervisors and leaders so that the company can react and adjust its plans, actions and communications. Great managers are the best communicators, without exception.
It begs the question: What are companies thinking today when they eliminate managerial ranks – the men and women who play such a critical role at the front line? Who will take their place? When covenants are broken with managers and their reports during periods of downsizing, rightsizing, offshoring, restructuring, the stripping of compensation and benefits, should we be surprised when great managers decide they no longer want to act as “connective tissue” in welding together a culture wracked by change? In so many ways, they want to stand on their own — not relying on others for HR field support or local marketing, for example. And when it comes to their integrity, trust and reputation, you can expect they may ultimately decide to stand alone here, too.