Introduction ''If your actions inspire others to dream more, learn more, do more, and become more, then you are a leader.'' --JOHN QUINCY ADAMS Welcome to the new world of business! We have gone through a watershed in business activities and operations since 2008, and things will never be the same again. What you are dealing with today is the ''new normal.'' The good old days are gone forever. Because of shrinking markets, increased competition, demanding customers, and a never-ending shortage of highly qualified, productive people, you will have to do more with less, and get better results from limited resources, more than ever before. One of the interesting outcomes of these challenging economic times is that companies are producing more with fewer resources. They have laid off millions of people and downsized in almost every area. But the level of productivity, performance, and output per person has actually gone up. Companies are maintaining or increasing their levels of productivity and quality with fewer people, but with people who are better selected, better organized, and better managed. This must be your goal as well. As a manager at any level, you are essentially the operator of your own personal business unit. You have revenues and expenses, inputs and outputs, production requirements and measures of performance. Your profit-and-loss statement reflects your ability to combine people and resources to get results--especially financial results--that are in excess, and, ideally, greatly in excess, of their total costs. Increasing Your ROE The measure of business success is largely determined by how well the managers of the business achieve a high and consistent return on equity (ROE). The purpose of strategy, planning, tactics, and operations is to organize and reorganize the people and assets of the business in such a way that this return on equity, which is the return on the actual capital that the owners have invested in the business, is the very highest possible in any market, and especially in comparison with competitors in the same business or industry. As a manager, your job is to achieve the highest ROE as well. Only ROE refers to the ''return on energy'' of the people who report to you. Your central focus should be to achieve the highest possible return on human capital--the physical, emotional, and mental effort--that your people invest, or are capable of investing, in achieving the results for which you are responsible. According to Robert Half International, the average person works at about 50 percent of capacity. Because of unclear job assignments, lack of priorities, poor management and direction, and lack of feedback, the average employee wastes 50 percent or more of his time in activities that have nothing to do with the job. This wasted time is consumed in idle chitchat with coworkers, extended lunches and coffee breaks, employees coming in late and leaving early, surfing the Internet, and engaging in personal business and other time-filling activities that represent virtually no return to the company on the amount of money invested in paying people's salaries, wages, and benefits. But, as Napoleon said, ''There are no bad soldiers under a good general.'' A good manager with a clear vision can quickly organize a group of average performers into a peak performance team that is capable of achieving tremendous results for the company. You just need to learn how to do it. The good news is that all the answers have already been found and are readily available. As the result of decades of research and millions of hours invested in personal and organizational performance, we now know exactly what you need to do, and to stop doing, to get the very best out of your people. Since 65 to 85 percent of the cost of operating a business (aside from cost of goods sold) is consumed in salaries and wages, your ability to tap into the unused 50 percent of this investment, owing to employees working at half speed, and channel the human energies of your staff into higher levels of productivity and performance, enables you to make a real difference in your position, whatever it is. Learning What You Need to Learn Another thing we know is that every excellent manager today was once a poor manager. Everyone starts at the bottom with no managerial skills at all, no matter what a person's title. My personal experience is a good example. I remember when I was first promoted from a top salesman to a sales management position with more than thirty salespeople under me. I was convinced that this was a great opportunity for me to demonstrate my leadership abilities. Having no management experience, I immediately began giving orders, telling people to do certain things and to stop doing other things. I lectured to both individuals and groups to demonstrate my superior knowledge and competence in our business. I criticized people for mistakes or lack of productivity and threatened to fire people who didn't smarten up and fly right. I ignored the sullen looks and brooding faces, dismissed the silence that greeted me whenever I walked into the room. I was oblivious to the small groups of salespeople who were joining together and complaining among themselves about my behavior and the way I was treating them. A week after I was promoted into this management position, I arrived at the office one morning to find it empty. Everyone was gone. They had cleared out as if there had been a bomb scare. The only person left was the secretary, who told me that the top salesman in the company, a man who was very popular and influential among the other salespeople, had quietly organized the group and then made an offer to a competitor to bring the entire sales team over, along with their customers, to sell a similar product for the rival firm. Because of the way I had been treating them, and some peer pressure thrown in, the whole group walked out. Taking Stock My reaction was shock and disbelief. I knew that when my boss heard about it, I would be fired and put back out on the street, exactly where I had started some years before. Not knowing what to do, I called on a wiser, older businessman, told him what had happened, and asked for his advice. Because he had been through a similar situation early in his career, he told me exactly what had happened, the mistakes I had made, and what I needed to do immediately to turn the situation around. First, I had to be willing to accept that I had personally made a major mistake, and that I was responsible for rectifying it. The next key to solving this problem was the top salesman who had spearheaded the massive defection. If I could get him to come back, before the group had settled into the rival company, I could turn the situation around. Making Up His name was Phillip. I called him right away and arranged a meeting. He showed up with three other top salespeople, like a mafia sit-down, and asked me what I wanted. I immediately apologized for my behavior, promised never to treat the salespeople poorly again, and asked him what it would take to get him to come back. After some private conversation with his consiglieres, he told me what I would have to do. His demands were simple. I would appoint him assistant sales manager and work through him as a liaison to the entire sales force. I would henceforth treat each person with respect, and if I had problems, talk with him before criticizing or complaining in public. I agreed, and the next day the entire sales team reappeared at the office, ready to work. From that learning experience, I went on to build sales forces in six countries, recruiting, training, staffing, then appointing managers and helping them to manage their operations successfully. Each of the sales teams was soon producing excellent results for the company. I had learned a valuable lesson and I never forgot it. Excerpted from Full Engagement!: Inspire, Motivate, and Bring Out the Best in Your People by Brian Tracy All rights reserved by the original copyright owners. Excerpts are provided for display purposes only and may not be reproduced, reprinted or distributed without the written permission of the publisher.
