A management philosophy for confident, results-oriented executives seeking to maximize the full talent of their fast-charging personnel in a virtual workforce.
One thing I've learned while building 13 companies in almost 20 years of being an entrepreneur is that hiring and motivating the right people WILL make or break a fast-growing company. How fast? 100% to 300% or more growth per year.
My latest company, Rural America OnShore Outsourcing, is wrapping up its second year in existence and we are booming. To add to the complexity of managing our rapid growth, Rural America's team is largely comprised of Associates who work from home. Senior management is split among multiple states, and the heart and soul of the company — the talented Associates — is spread across many more states.
This virtual business model can be challenging to our communication. As a start-up company grows, the communication culture changes, i.e., the way five Associates work together changes when the company reaches 15 Associates. In comparing my notes with numerous seasoned entrepreneurs, I've observed that the next big communication culture change usually takes place when the group reaches around 50 members, when some communications breakdown occurs; by the time a company reaches 150 Associates, it's hard to know everyone's name, let alone keep the close-knit communication teamwork of the start-up days. To my dismay, I discovered that because everyone at Rural America was not in the same building, I was seeing the breakdowns in communication at the 25 person staff level typical of the 50 Associates staffing levels.
To tie all these diverse elements together, we had to create a new management style. While we had to keep management reporting layers to a minimum, preserve the flexibility of our widely spread out company, and be able to quickly respond to ever-changing market opportunities, we also had to tighten communication and wanted to reinforce our company's highly challenging and fun-loving culture.
Traditional "Top Down" management methodology won't work without layers and layers of management. On the other extreme, self-directed team management principles, where teams of associates manage themselves, are extremely difficult to incorporate in a short-term project-oriented consulting environment.
In a rapid-growth corporate environment covering numerous profit centers and large geographical areas, management simply can't be everywhere all the time. This means that team members must be capable of thinking and leading their part of Rural America themselves. And when they do that, they grow Rural America faster and make it stronger, as they themselves grow smarter and wiser.
At Rural America, we've labeled our unique style of management "Coaching Cats™"
All cat lovers understand that you can't tell a cat what to do. Cats tend to be very independent, usually very smart, and they don't listen when you tell them what to do. They will do what they want, when they want, and how they want. You have to make it worth their while for them to do what you want.
We endeavor to hire Associates who are like cats. That is, we hope they share the cats' traits: independent, self starters, high energy, self motivating, and yes, even a little argumentative. If they have worked as an entrepreneur, that's even better; we can help them become "intrepreneurs," that is, change agents inside a company.
Don't confuse hiring only Type A personality types with the concept of hiring "Cats." I made that mistake numerous companies ago and would up with rooms full of Generals all knowing that THEIR ideas and leadership directions were right. We argued and fought our way into corporate gridlock. I had to blow up the entire team and start over. Strive to hire a mix of different personality types — all intelligent, all motivated — to bring a diversity of ideas to the culture. As long as they have the "fire in their belly," they don't have to be brash and outspoken. In fact, one of the most talented members of our Management Team is also one the quietest; I've never heard her get cross with anyone in the company. She leads by quiet example, demonstrating the traits of intelligence and being a self starter without all the noise.
We give our Associates the work tools they need and place them in an environment where they can thrive, one with challenging projects to help them grow professionally and personally. We lead them by using coaching techniques rather than by telling them directly what to do and how to think.
The old-fashioned management style of an imperial CEO or an authoritative senior manager, who acts like s/he is Moses coming down Mt. Sinai with the Ten Commandants, is dead. Traditional "top down" management methodology dictates that the cats must be told what to do and where to go. According to Wikipedia, the expression "Herding Cats" "refers to a task that is extremely difficult or impossible to do, due to one or more variables being in flux or uncontrollable." EDS's famous 2000 Super Bowl commercial demonstrates the difficulty all too well (see http://ht.ly/2n9RP). We get much better results by coaching our team of cats than by herding them.
What is Team Coaching at Rural America? At the basic level, coaching is:
- helping to identify the skills/capabilities that are within each Associate
- enabling each one to use his or her talent to the best of his or her ability
- increasing the operational independence within the individual, and thus lessening the need for direct managerial supervision.
Rural America's coaching technique rests on the:
- setting joint goals/objectives for both work/personal growth
- selected use of powerful questions with the aim of pointing the Associate in the desired direction
- allowing the Associate to discover different solutions and options in order to achieve the required project goals and objectives for a healthy relationship with Rural America's clients
- Utilizing "open book" financial management techniques to share with the Associate the Company's financial performance and how their actions are impacting the Company's operations.
This personalized coaching, combined with a "Trust, but Verify" project quality assurance methodology, enables us to have happy Associates as well as the ability to measure quality of work product, check milestones of progress, and report on client satisfaction.
By giving our Associates the trust and freedom to use their originality and experience in project implementation, we create a "Win³" environment: the Associates build on their existing experience, the Client receives superior product and service, and Rural America grows and flourishes.
Now, many executives may be afraid of this management style. To them, management is about maintaining control and minimizing associated risk by assigning authority. All our competitors in the rural USA OnShoring industry operate by traditional brick and mortar operations and with a management style based on traditional oversight of their employees. Rural America, on the other hand, knows that Associates, like cats, thrive when given the space to act independently. Our emphasis on trust and on results is no less important than the conviction we have that if you find and hire the intelligent, motivated and accountable people, you really get "the cat's meow."
150 years ago, America's Industrial Revolution was ramping up and workers flocked to the urban areas to seek work in large, top-down managed company. Today, in the Age of Internet Broadband, more and more companies will start rely on virtually-based associates spread across multiple states. The seven billion dollars of federal stimulus money authorized by Congress for internet broadband is going to accelerate this transformation. As we know at Rural America, rural-based Americans are entering the virtual-based workforce, and millions will still enter. They are all willing and able to work for labor rates far less than their counterparts in urban areas and still maintain a solid standard of living.
Many new and innovative entrepreneurs will be creating products and services with aims of competing worldwide. As the new internet-based workforce spreads out, new management methodologies, such as Coaching Cats™, will be required to forge this tremendous market force into its maximum productive capability.
© Christopher Hytry Derrington 2010. chris@ruralamericaonshore.com