May 3, 2024

Corner Office: Alan Trefler: Your Opinions Are Respected (and Required)

Q. Do you remember the first time you were somebody’s boss?

A. If we go way back, it was when I was working with my dad in his business. When he came over from Europe at the end of World War II, he established the family business, Trefler Sons Antique Restoring.

Sometimes he would give me interesting assignments that would involve trying to coordinate people, all of whom were older and more experienced than I was. So I didn’t really have the authority, and I really didn’t have the right level of experience, but I had a lot of enthusiasm. I found that with the right level of enthusiasm, you could actually get other folks to follow your lead or, better yet, do some things themselves that they knew how to do better than you, even without having to push them.

Q. What about after your first formal management role?

A. I had just graduated from college and was in a situation where I walked into a job as a project manager, despite being grossly underqualified for the role.

I was a pretty good software engineer, and I managed to trade on that to actually get a leadership job running a small team. It was a project for Citibank. I spent my first day reading the documentation about the project, and two days later, my boss was called off to another job and I was on my own. And the project, the day I started it, was already six months late.

I did survive it and actually learned a tremendous amount by not having blown myself up in the course of doing that. But it was a pretty traumatic experience. I’ve tried to make sure that when we bring people on at our company, we never subject them to anything remotely like that.

Q. So what do you do?

A. We invest a lot in trying to put people through a learning curve. So we have very extensive training in just about all the jobs in the company, to get people feeling like they have their feet under them before they’re thrown in, particularly before they’re thrown in with customers. The most dangerous thing about that first experience for me was that if I had made a bad impression with the client, you could almost never undo that. You really need to make sure that the initial impression is one that shows you’re capable.

Q. And in terms of leading that first team, what was your approach?

A. One of the things I’ve always believed is that content matters a lot. So what I did was immerse myself in what we were trying to achieve. I spent a couple of days sitting with the customer and watching and understanding their business at a pretty deep level.

And then I dived into the technical realm. And I think I was able to convince my teammates that I wasn’t just going to be the next guy who was going to get blown up leading them. Coming into something that’s already in a little bit of trouble, people are wondering what your survival rate will be.

It was, frankly, a bitter experience to be so excited about starting a new job and working with a Wall Street bank, and then to discover that you’re sort of up there on the high wire, really exposed and without the right skill set.

Q. Can you elaborate on how “content matters” and how it plays into your philosophy of leadership and management?

A. When people ask what the company is like, I say the culture we try to encourage is a “thought leadership” culture. You hear people throw around that phrase a lot, but to us, thought leadership means some very specific things. We focus on each of the words. So, you have a thought when you have an opinion about something. You actually need to have an opinion that is hopefully a unique or complementary opinion to the opinion of others. As William Wrigley Jr. said, “When two men in business always agree, one of them is unnecessary.”

I think having an opinion is important, but it’s not enough to have an opinion — it has to be an informed opinion. So content really matters, and you need to understand the context of what you’re trying to have an opinion about.

And then the second part of the phrase “thought leadership” involves the concept of, what does it mean to be a leader? And ultimately, you’re only a leader if somebody’s willing to follow you. And the characteristic about leadership that we focus on in that context is persuasiveness.

Article source: http://www.nytimes.com/2011/08/07/business/alan-trefler-of-pegasystems-on-valuing-employees-opinions.html?partner=rss&emc=rss

Room For Debate: Can Manufacturing Fuel a U.S. Recovery?

Introduction

General Motors Orion Assembly PlantFabrizio Costantini for the New York Times The General Motors Orion Assembly Plant in Lake Orion, Mich.

Yes, the economic news is grim this week.

Stocks plunged on Thursday amid heightened fears that the United States may be headed toward a double-dip recession. Today’s monthly jobs report, though better than expected, is unlikely to ease those concerns. Earlier in the week, a key index reported that manufacturers recorded their weakest growth in two years in July.

But is there a bright spot in the manufacturing numbers? While the growth slowed significantly, the trend is still up: output increased a small amount, and the sector has been expanding slowly but steadily for 24 consecutive months.

Is it possible that manufacturing might help the U.S. economy recover and produce needed jobs? Or is domestic manufacturing — at least in the traditional sense — a relic of the past, incapable of rescuing the American labor market?

 Read the Discussion »

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Topics: Economy, labor, unemployment

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Article source: http://feeds.nytimes.com/click.phdo?i=aaf36e5800834a05c7261684a2d4a376

Bucks: Wednesday Reading: Obama Promises Action on Jobs

August 03

Tax Changes for Gay Married New Yorkers

Now that gay marriage is legal in New York, legally wed couples will be subject to new state tax rules, which affect everything from income and sales taxes to estate planning.

Article source: http://feeds.nytimes.com/click.phdo?i=6e5fd0527d5f0af6badd9f5f9ceac316

You’re the Boss: The Very Picky Customer

Of course our very picky customer found the flaw immediately.Courtesy Paul Downs CabinetmakersOf course, our very picky customer found the flaw immediately: “What happened here?”

Staying Alive

The struggles of a business trying to survive.

We got a call from a potential client a week ago Monday, which isn’t unusual. We get two or three calls every day. Our phones are set up so that they all ring whenever a call comes in. I sit within a couple of feet of my other two salesmen, Don and Nathan, and whoever is free grabs the call. I happened to be in the middle of writing an e-mail that day, so I let it ring and Don picked up. He answered: “Paul Downs Cabinetmakers, Don speaking, can I help you?”

I was paying half attention, in case it was for me. He listened for a few minutes, during which I turned back to my e-mail, and then he said to the caller, “Yes, he’s here,” and put her on hold. He turned to me. “She’s a client, but she only wants to speak to you.” We exchanged raised eyebrows — that is very unusual. In fact it hasn’t happened in recent memory. So I picked up the phone and had a conversation with a client who started out by asking me if I were familiar with Company A, which is one of my competitors.

Yes, I replied. The name comes up often when we are working with New York clients. It’s a company that is larger and older than we are and builds a wider range of furniture items. It has both custom and production divisions. I have seen some of its work and it looks O.K. — decent craftsmanship but no better than the jobs require. “I went to visit their factory,” she continued, “and I was very disappointed with their work. Very, very disappointed. Is your work good?”

Now, that’s kind of a rude question. When you walk into a restaurant, do you ask the hostess, “Does your food taste good or is it going to make me vomit?” What could I possibly say except, “Yes, I believe our work is as good as any of my competitors.” Which, as far as I have seen, is true. I get out in the world now and then and look at other people’s products. What I see is consonant with my own experience of running a factory. In the world of custom fabrication, people get what they pay for, with the occasional deviation from the norm, for better and for worse.

Back to the client: she asked me some fairly technical questions about how we made things, which indicated some knowledge on her part of what happens on a shop floor, but she projected a tone of distrust with my answers. I could only get the most basic information from her regarding the specifics of her own job. I was wondering why, if she didn’t think our work was going to be any good, she bothered to call. “Tell you what,” I said. “You’re in North Jersey and we’re just outside of Philadelphia, so why don’t you come down and take a look at our shop and the work we have on hand, and make up your own mind.”

She said she’d think about it and hung up. Hmmm, I thought. That was very different from our usual client call. People usually are happy to discuss their own project and don’t have many questions about our qualifications.  The Web site seems to convince them that we are legit. Don and I discussed it, and he said she had seemed aggressive from the beginning, brushing him off and insisting on talking only to me. We were both a little put off by her attitude. The job had potential, though, so I figured I would do my best to put her at ease if she decided to proceed.

I got an e-mail from her two hours later suggesting that she visit on Friday. That was good for me, so I confirmed. I also sent her our list of questions that we use to initiate a job and got enough information back so that I was able to put together a preliminary proposal for her to consider before her visit. I have found over the years that doing this speeds the decision process along considerably. It gives the clients something specific to react to, which helps them to think about what they really want. Also, because our proposals are impressive, I figured that this might help put her at ease.

She showed up on Friday at the appointed time, accompanied by her company’s chief financial officer. I gave them the shop tour, which took about an hour and covers our office and design process, the different kinds of wood we use and our major equipment pieces and how they operate. I walked them all around, and we examined a number of partially completed projects. We concluded with a swing through the finishing shop and ended up in our photography area, where we had a just-completed table assembled for picture taking. This particular table was a complicated design with some difficult details: an oval top with solid maple edge, plain maple top, and an oval curly maple center panel. The plain maple was set at an angle across the top to form a giant X-pattern. The grain continued across the dataport lids.

All of this had been difficult to execute, and almost all of it had been done perfectly. There was one thing that I didn’t think had come out exactly right. There was a very slight misalignment between the oval center panel and the adjacent maple panel. It was less than 1/64th of an inch, but you could feel it if you ran your hand over it. It wasn’t bad, but it wasn’t perfect. I had no qualms about shipping this table, as it was within the bounds of what I consider acceptable, although closer to the edge than I like to be.

Of course, our very picky client found the flaw immediately. She ran her hands over it repeatedly, brow furrowed, and said to me, “Oh, I don’t like this. What happened here?” I imagine that everyone has experienced a version of this moment. I was trapped. No matter what I said, it was going to sound bad, because the real explanation was that the work simply wasn’t perfect, that it was hard to do and we had come close but we hadn’t nailed it. Furthermore, we weren’t going to do it over because we couldn’t guarantee that it would be any better the next time (leaving aside that we didn’t have time and that it would cost quite a lot of money). I directed her attention to all of the parts of the table that were, in fact, perfect, and I guess she decided that it would have to do, because we then proceeded to move on to the specifics of her project, and when she left I was under the impression that we had passed the test. Squeaked through, maybe, but we made it.

I had the weekend to mull over this experience. I was, frankly, spooked that a client had anything other than raves for our work. We have had almost no negative feedback regarding our craftsmanship from our clients for the last couple of years, while we regularly get e-mails saying how much better the work is than the client had expected. That’s not to say that nothing ever goes wrong on the shop floor. When you make things, there are always going to be variations in the outcome. Some come from the materials you use, some from the design, some from the tools, some from the people who manage all of that.

We review each issue case by case and make decisions as to whether to ship a job or do it over. This method appears to be working. It allows us to get work done and out the door at costs that leave us some profit. Any procedure at any company can be tightened up, but it can be expensive, and it could result in work that is better than our customers are willing to pay for. A conference table doesn’t, in fact, need to meet the tolerances that you might expect of  a jet airplane. No one’s life is threatened by a slight misalignment in veneer patterns or a speck of dust in the finish of a base pedestal. So the question is: Should I let the reaction of an extraordinarily picky customer push me into changing our manufacturing process, at the risk of increasing our costs?

I brought this issue up at our Monday meeting. The table was still set up in the office, so we stood around it while I told the story of the very picky client. It turned out that it was the shape of the center panel that had caused the problem. The pointy oval didn’t allow the guides on our machines to function with their usual accuracy. Is there a better way to build that design next time? No, it’s just a difficult detail, and there’s no better way to do it than we had tried the first time. The shop floor guys have done their best and can’t solve the problem. So we turned to the design and asked some questions of the sales department. Why was the table designed that way? Did the client ask for it? Not really, it turned out: the salesman just thought it looked cool. Did we get extra money for all of that extra coolness? No, but we did get the sale. Which beats not having any work to do at all.

All of this was discussed in a nonhostile way, with everyone in the company listening. It took about 15 minutes to get through. In the end, the lesson learned was: don’t sell tables with pointy oval centers. If a client doesn’t ask for it, and isn’t paying for it, and it might cause trouble, don’t do it. Sales guys have to be careful not to underprice their designs just to close the deal. Our shop floor procedures can continue as they are.

And the very picky client? We will only present her with options that we know we can execute without difficulty. Her quote will include some extra padding so that we can spend extra time on the shop floor making sure everything is just so. If she places an order, and I don’t know if she will, we’ll be super extra hyper careful that everything is perfect.

What do you do with a client whose expectations exceed your normal level of service?

Paul Downs founded Paul Downs Cabinetmakers in 1986. It is based outside of Philadelphia.

Article source: http://feeds.nytimes.com/click.phdo?i=445c8cb1d4d85d5009bd1874f1f3cb97

Economix: A Consumer Bust? Or a Wage Bust?

Economics doesn’t have to be complicated. It is the study of our lives — our jobs, our homes, our families and the little decisions we face every day. Here at Economix, journalists and economists analyze the news and use economics as a framework for thinking about the world. We welcome feedback, at economix@nytimes.com.

Article source: http://feeds.nytimes.com/click.phdo?i=11f4499066a75398c17f6c5e7ee6cc74

Economix: Behind the Small-Business Funk

Economics doesn’t have to be complicated. It is the study of our lives — our jobs, our homes, our families and the little decisions we face every day. Here at Economix, Catherine Rampell, David Leonhardt and other contributors will analyze the news and use economics as a framework for thinking about the world. We welcome feedback, at economix@nytimes.com.

Article source: http://feeds.nytimes.com/click.phdo?i=bdfcc833b8cb143805e4482e6537212e

Economix: Another Bad Sign for Hiring

Small businesses have ratcheted down their plans for hiring, according to a report from the National Federation of Independent Business.

Each month the federation releases results from a survey of questions about small business optimism. One question asks whether businesses plan to increase or decrease the number of employees working for them in the coming three months. Economy-watchers can then calculate a “net hiring” figure by subtracting the percentage of companies that say they plan to decrease their work forces from the percentage of companies that say they plan to increase their work forces.

In May, there were more companies that planned to decrease their payrolls than those planning to increase them. This was the first time since September that net hiring plans were negative:

DESCRIPTIONSource: National Federation of Independent Business, via Haver Analytics Note: Figures are seasonally adjusted.

This net hiring index was only barely negative — the number of companies planning to hire minus the number planning to reduce their payroll amounted to negative 1 — and so may have been within the margin of error. But even so, this indicator has been trending downward all year.

That’s a bad sign, especially since this measure is by definition forward-looking. Bill Dunkelberg, the chief economist for the N.F.I.B., says that this question has in the past been a reliable predictor of how many jobs companies actually added.

On the bright side, he said that the companies with the strongest hiring plans are the ones that had been holding out on hiring, and so far have had some of the weakest employment gains. The top two industries in net expected hiring were nonprofessional services and construction. The third best was manufacturing, which had been on a hiring roll for a while but then lost workers on net in May.

Article source: http://feeds.nytimes.com/click.phdo?i=9d7c1f93d0b86988aca069a11a94c240

Corner Office: Liz Elting: A Work Ethic Shaped at an Early Age

      

Q. What were some important lessons for you early on?

A. I worked from an extremely young age — everything from babysitting to newspaper deliveries to walking a child to school to working in a dry cleaner to telemarketing.  And now when we hire, that’s one of the key qualities I look for.  I look for people who have a very strong work ethic, and I think a big indicator of that is whether somebody has worked from a very young age, and ideally has never stopped. 

Q. Were your parents pushing you to take these jobs?

A. Absolutely.  My parents encouraged me to work from the day anyone would hire me.  They said, “You need to be a hard worker.  We want you to have experience, and you should be able to be self-sufficient financially when you’re older.” And I was in a situation where I had a lot of advantages.  I was able to travel.  I lived and studied abroad a number of times.  But they made clear I needed to work.

When people have that kind of upbringing, either out of necessity or because their parents chose to bring them up that way, they’re likely to be the best employees.  And it’s not only a strong work ethic. Adversity is important, too. And people who play competitive sports also have that desire to win that’s so crucial in employees.  It’s also a good sign when people come from entrepreneurial families — where the mother or father ran a business. 

Q. When you started the company with your partner, did you have discussions about the culture you wanted to create?

A. Meritocracy was always a big concept to us — making sure that the best people were promoted and rewarded, and that is very much how we run our company now.  Virtually all of the senior people at our company were promoted from within.  Most of them started at entry-level positions.  And so it’s very much a meritocracy.  We also believe in holding people accountable.  We’re also big believers in being completely open and transparent. 

Q. Make that real for me.  How do you do that?

A. We share with our people what’s going on in the company.  We’re open with our financials because it’s better if they understand what’s going on.  We make sure they’re clear on the vision and that they understand it.  We also let them know our accomplishments and our challenges as well as our shared goals.

Here’s another example of being open: If we have a manager who says one thing, and another employee who says something else, and they come to us independently, we’ll put them together in a room with one of us and have a three-way conversation.  There’s no reason to have side conversations.  We simply bring everyone together, we talk about the issue, and we resolve it.

And when we have other meetings, we really encourage people to talk and let us know what’s on their minds so we can address it. We don’t want meetings to be a couple of people talking and everyone else listening.  I do think people need to contribute. Some people are more executers, some people are more innovators, and some people are a combination but we need ideas. People often have them, and they don’t share them, so we need to encourage them. 

Q. Is it awkward resolving those side conversations you mentioned earlier?

A. You know, it’s not really, because I think people just know it’s not right. We have a very open culture, so when two people are disagreeing, bringing them together in a room to resolve it doesn’t seem like an awkward situation to me.  It just makes the most sense.

Q. How else do you find out what’s going on?

A. We encourage people to speak up.  Whenever we see people, we talk to them.  We ask them questions.  We ask them how they’re doing, and we ask them a number of times so that we really get to the issues.  “How are you feeling about things?  What do you think?” 

We also encourage managers to meet with all of their direct reports at least once a week to talk, to give feedback and to get feedback. These once-a-week meetings with direct reports, for each leader at every level in the organization, are something we do, and they’re very important.

Q. Have you always done that?

Article source: http://feeds.nytimes.com/click.phdo?i=a8d149263fcd0b8ca2b148434754f508

Bucks: Thursday Reading: Sedentary Jobs Contribute to Obesity

May 26

Thursday Reading: Sedentary Jobs Contribute to Obesity

Sedentary jobs contribute to obesity, a record year for storm shelter sales, Apple computers targeted by malware and other consumer-focused news from The New York Times.

Article source: http://feeds.nytimes.com/click.phdo?i=77ffd3382a0641f2a0e8c4b6e682ec16

Ricoh to Eliminate 10,000 Jobs

Opinion »

The Score: Prague 1970, Music in Spring

The education of a young composer in a time of revolution.

Article source: http://www.nytimes.com/2011/05/27/business/global/27ricoh.html?partner=rss&emc=rss