The Power of the “60 Second Greeting”

Daily habits can be a motivating part of your day, especially if they beneficially impact others and provide an inspiration for their work challenges.  I learned years ago the importance of developing productive habits in the workplace, and I particularly gravitated to those which enhanced my leadership skills and improved the performance of my staff. 

One leadership characteristic that I have cherished is the habit of consistently engaging in the “60 second greeting” with my associates.  Such a greeting extends beyond the proverbial “good morning” and very briefly explores some subject that is relevant to the other person.  Examples could be asking about a project they are undertaking or asking about their big issues for the day.  You are not searching for details here, but rather, you are seeking high level responses that can fill a 60 second time period. 

Obviously, there are multiple facets to building effective leadership skills.  Linda A. Hill, Harvard professor, elaborates on this topic in an interview with Eric Markowitz in the December 17 issue of Inc.com on-line.  Hill specifically says, “You should lead as if everybody matters, because everybody does.”  This philosophy is embodied in the “60 second greeting” that I follow, and executed properly, it can become an integral part of your leadership skills.  Here are three reasons to try this approach:

1.     It builds respect between you and your associates.  Everyone wants to feel that they are an important part of the overall team in a business setting.  As a leader, conversing with your associates with more than a simple “good morning” demonstrates that you care about their contribution, which will foster a feeling of mutual respect on their part toward you.

2.     It yields higher productivity and happiness.  When an employee knows that their leader cares about their performance and contribution, their productivity increases.  With a few sincere words of acknowledgment coming from a leader each morning, an employee will feel a greater level of ownership of their business and work more productively.  And as a leader, if you recognize the productivity increase and give the appropriate recognition in the “60 second greeting”, the dividends grow even more.

3.     It enables you to stay in touch with your team’s business.  Branching out of your office each day to greet the associates on your team allows you to keep abreast of issues in their world.  Average leaders can easily fall into the trap of believing they know about their team’s business without maintaining a regular routine of communication.  The above average leaders know that greeting and talking to their team members on a consistent basis provides them with information that may otherwise be filtered, resulting in incorrect conclusions.

Being an effective leader is many times measured by the effectiveness of your associates.  For me, the “60 second greeting” is a valuable and natural approach that has allowed my associates to experience success and happiness in their work.

How Effectively Managing Change Can Improve Your Business

One of the most challenging, yet rewarding, aspects of being a business leader is managing the process of change.  Illustrating its importance, a former boss of mine from a recent company had a saying, “You don’t get better unless you are willing to change.”  He was a strong advocate of that philosophy, and I learned to appreciate its value in enhancing business operations and improving employee productivity.

But what does it entail to be effective at implementing a business change?  It is certainly not an overbearing or domineering approach, for that will surely result in eroding employee morale and minimizing any opportunities for success.  Instead, the most effective path to achieving the best results from a change is to involve affected employees in the process to gain their feedback and implement their suggestions, where appropriate.

Mary Ellen Slayter addresses this topic in her December 6 article in “SmartBlog on Workforce” in which she interviews Peter Bregman, CEO of Bregman Partners.  In that article, Bregman states, “The way to make a change happen successfully is to give choices to the people who need to make the change successful.”  Clearly, this is the basic and underlying principle of effective change management, and I have successfully utilized it in my career. 

I recall one of my best examples of exercising this technique centered on consolidating the export shipment activity at the major retailer where I formerly worked.  At the time, we were operating in a decentralized environment with multiple stores being permitted to fully process their own export shipments of sold merchandise to international customers.  However, with the lack of proper expertise at the stores to accurately complete the strict and precise export documentation, customer shipments were being delayed in the foreign countries and occasionally seized by government authorities.  In some instances, fines were issued by U.S. government agencies before the shipments departed the United States.  Customer dissatisfaction was a growing problem. 

As a result, we decided that we needed to consolidate the export processing with the corporate international compliance team in my area.  Initially, this process was met with extreme reservation by our stores because they felt it would delay the delivery to the customer even further.  However, we elected to partner with the stores to design a new logistics and compliance process, plus, we solicited the input from associates in my area.  Because of our decision to involve those affected by the change, the new process was embraced by the stores and ultimately improved the customer deliveries and satisfaction.

Had we not consulted with the stores to garner their support, their ownership of the change would have been much more difficult to achieve, and the success of the program would likely have been in doubt. I like reflecting on that event because it demonstrates how to engage others in the pursuit of effective change management.

Four Basic Elements of an International Program

For those who have read some of my previous blogs, you can tell that I like writing about the business of trade compliance, ethics, and leadership.  Let’s face it, I’ve been schooled in a corporate environment operating an international business, where successfully navigating through technical hurdles and staff development has regularly given me a sense of accomplishment.

Over the years of my career, I have found that achieving success in the international business of importing and exporting hinges on four basic topics.  To me, they are basic because they encompass just about every aspect of the foundation of a productive international business.  Wally Bock believes in basics as well, and he elaborates on a few simple elements of leading and conducting yourself in the best possible manner in his November 30 Three Star Leadership blog.  In the spirit of Bock’s “leadership basics”, here are my four basics on building a solid importing and exporting business:

1.     Hire competent and engaging people.  Indeed, this can be easier said than done, but finding the right people with the best chemistry to interact with others can be worth gold.  Sure, you want staff members who possess appropriate technical skills to understand the international market, but it is highly important to surround yourself with people who are eager to learn and embrace change.

2.     Utilize strong service providers.  All companies operating an international business will use third party service providers in some capacity.  This may consist of carriers, freight forwarders, consolidators, or Customs brokers.  Selecting these parties should be based on a practice of conducting regular competitive bidding along with the associated analyses and fostering the relationships on a continual basis once the selection is made.

3.     Implement solid financial and operational systems.  While the logistics and trade compliance functions of importing and exporting are very important, it is critical to maintain visibility through effective systems that provide data management.  The ability to track shipment activity and to capture relevant data electronically will provide a competitive edge that is necessary in the international market.

4.     Maintain effective process management.  Instituting proper controls for the oversight of the financial and operational aspects of importing and exporting is essential.  This consists of documented procedures, regular reporting of KPI’s (key performance indicators), and an ongoing methodology to ensure regulatory compliance is maintained and improved as needed.

None of these basic points are complicated, but regardless of the size of your international business, focusing on these will certainly advance your importing and exporting operations.

When Auditing Yourself Really Counts

Say the word “audit” to some people, and they tend to get uneasy and nervous.  For some, panic sets in and their fear of the results of an audit causes a debilitating effect on their business.

However, cast your fears and anxieties aside, for approaching an audit process from the proper perspective can strengthen your business and create a productive environment.  Specifically, for those engaged in trade compliance associated with importing and exporting, a post entry audit program can significantly improve your operations.  Such a program is one in which you audit your own importing and exporting transactions after the fact to ensure the accuracy of your program and then publish the results internally.

If your business is involved in international trade, here are five valuable reasons why you should maintain a post entry audit program:

1.     It helps achieve favorable Customs and other government agency reviews.  Importing and exporting is an activity that is closely scrutinized by government agencies.  In particular, U.S. Customs and Border Protection (CBP) conducts regular reviews of importers through a process called a Focused Assessment Program.  During these reviews, one of the components CBP will check is to determine if your compliance program contains a solid post entry audit program.  If so, they will likely conclude that you are undertaking the appropriate due diligence of your business and have a more favorable view of your operations.

2.     It enables disclosure of discrepancies.  No importer or exporter will be 100% accurate with all of their import and export transactions 100% of the time.  However, a post entry audit program will enable you to identify discrepancies and submit appropriate disclosures to the government that will reconcile any variances and maintain your accuracy as closely to 100% as possible.  One of the hallmarks of CBP’s expectations is that businesses are to police their own actions and institute the proper remedies.  Proactively disclosing any transaction discrepancies helps avoid CBP discovering them first and taking penalty action.

3.     It fosters better internal controls.  The mere act of auditing your transactions adds discipline and formality to improve internal controls over financial activity.  This in turn reflects favorably on the ability of your international business to uphold the expected performance standards.  Furthermore, improving the internal controls in one area of company tends to influence other areas to increase their standards as well.

4.     It sets the stage for advancing to ISA.  The Importer Self Assessment (ISA) program through CBP allows an importer to forgo the Focused Assessment Program by conducting their own reviews and assessments and periodically reporting the results to CBP.  Many importers favor this approach because it avoids the on-site CBP reviews, but an importer must be validated by CBP before being admitting into the ISA program.  Demonstrating that you have a quality post entry audit program in place is prime requisite of ISA.

5.     It builds accountability and ownership.  Any quality program that centers on auditing will reinforce the accountability and the ownership of the employees to ensure they are conducting their business accurately and ethically.  A post entry audit program to review international transactions creates an environment where the employees and the company as a whole will value the importance of adhering to the rules and regulations of importing and exporting.  Not only does it result in verifying the accuracy of your financial transactions, but it can create opportunities to implement beneficial changes in your operations to become more compliant.

While reviewing your international business through a post entry audit program may sound daunting to some, it truly is the cornerstone of an effective trade compliance department in a company.  Executed properly, it will pay measurable dividends.

The Importance of Urgency

I’ve always been one to feel that a sense of urgency equates to business success and that pushing yourself to exceed expectations is a prime key to achieving productive results.  But just how important should a sense of urgency be to help foster success in your business? 

This concept of urgency struck a chord with me as I read Katherine Bell’s recent Harvard Business Review online blog, “Frontline Leadership” about how John Meyer, CEO of Acxiom, has been affected by his earlier career.  You see, before Acxiom, Meyer was in the Air Force and worked in an underground bunker where he controlled the potential missile launching of 150 nuclear warheads.  Faced with such extreme pressure, especially in a time sensitive environment, Meyer developed a deep appreciation for the urgency of his business.

Now my business life has been a far cry from the responsibility of having the firing of nuclear missiles at my fingertips, but I can understand the sense of urgency in such a setting.  For me, the bulk of my professional career has been in the specialty retail industry, where accountability and urgency were engrained in me at an early stage.  It grew to become the core of my commitment to providing the best customer service at all times.

I recall one of my favorite stories of urgency in my retail life centering on something as benign as a feather.  One day, I received a phone call from a selling associate in one of our stores in Houston saying that an expensive special order gown just received for her customer was defective.  Bear in mind that the gown was not defective, but rather, an exotic feather artfully sewn into the material was damaged.  Our only option was to obtain a replacement gown from the designer, but this was not a simple task, for the gown had to be imported from France.

Being in logistics, my role was to successfully import the replacement gown in time for the customer’s social function on Saturday night.  But the challenge was that it was now Wednesday, with a mere three days and counting to achieve our goal to import an item that normally takes seven days from start to finish.  The communications with France were hastily executed and the gown was promptly shipped.  Upon arrival in the U.S., we coordinated with the proper government agencies to clear the gown for delivery to our facility in Dallas.  Once in our hands, we dispatched an associate to hand carry the gown on a plane to Houston Saturday morning for inspection by the selling associate who then drove the cherished item to the customer’s house in time for her evening event.

In an odd way, maybe I had my fingertips close to the “retail nuclear missile buttons” for that task, but it reinforced in me how displaying a true sense of urgency can create a success.  That incident propelled me forward to understand the importance of urgency and to keep it at the forefront of my business philosophy.          

Why Ethics Should Be First

As I watched the mid-term election returns on Tuesday night, I was struck by a discussion regarding a poll conducted by Fox News in September.  In that poll, voters ranked the economy as their top issue followed by trustworthiness of candidates as their second issue. 

Now I definitely agree with the importance of targeting our efforts on improving the economy, but to me, seeing a candidate’s integrity viewed as a secondary issue was unexpected, yet probably quite predictable.  Clearly, it can be debated that just because trustworthiness is ranked as a number two issue does not mean it is unimportant.  

But what happens when we view the voter poll in the context of a corporate environment?  Should the financial and operational performance of a company be placed ahead of its employees conducting themselves in a trustworthy fashion?  My answer to that is, “No”, because in a corporate world, I see trustworthiness as a cornerstone of integrity which leads directly to upholding proper ethics.  And without proper ethics, the performance of a company is likely doomed, evidenced by the perils of WorldCom and Enron.

For many years, I oversaw the corporate trade compliance functions of a major U.S. retailer, where maintaining an ethical approach to solving importing and exporting compliance issues was essential.  Indeed, I was tested at times, especially on those rare occasions when imported merchandise arrived in our possession without being subject to the proper government clearances.  

In one instance, we received a shipment of handbags from a supplier in Italy for which we learned upon opening that each bag contained a small patch of decorative python skin.  This may sound harmless, but python is an endangered species and requires documentary submission to the U.S. Fish and Wildlife Service before entering into the United States.  Complicating the matter was that the shipment had not been declared with the U.S. Fish and Wildlife Service.

We certainly could have remained silent because the shipment was in our possession, but we did not.  We chose the ethical approach and disclosed the shipment to the U.S. Fish & Wildlife Service, and although we paid a minor penalty, we gained the respect of the government for conducting our business properly and revealing the error.  Such a matter did not have the magnitude and significance of those of WorldCom and Enron, but regardless of the company and the issues, ethics should come first. 

Should we have remained silent?  Absolutely not!  When operating a corporate trade compliance program it is mandatory that you perform with the highest levels of integrity, which means disclosing your errors, even if it may result in a small penalty.  In the case of the handbags, we purposefully delayed distributing the merchandise to our stores until the matter was resolved.  Did it result in lost sales?  Yes, it did, but in the end, we elected the right option that demonstrated we were a trustworthy company.

Just like the Fox News poll voters, I want to see solid and progressive improvement in the economy.  But I first want to know that our candidates are trustworthy, as this will hopefully lay the foundation for sound, ethical decisions that will result in a positive performance.

When Asking is Better Than Answering

For those in a leadership role, I’m sure you have felt the compulsion to always provide the answer when a question is raised by a member on your team.  It’s a natural response to feel that you must be the answer resource, for after all, this is what is expected of you in your position.  Right?  Wrong!
.

The most effective leaders know how to be comfortable in asking appropriate questions to stimulate the input from their teams rather than always providing the answers themselves.  Mike Figliuolo argues this concept in his recent thoughtLEADERS, llc blog saying, “You need to move from a world where you provide all the answers to a world where you ask all the questions."

Throughout my many years of leading people, I have learned to appreciate the art of asking questions versus immediately casting forth an answer.  Sure, it took me some time to become settled with this approach, but I have found it to be more productive and revealing while promoting the growth of my teams.  Here are my top three benefits of asking rather than answering:

1.   It enables you to educate an employee on a possible fundamental principle.  When a question is posed to you from an employee, pause for a moment and ask what outcome he or she is seeking.  Ask what circumstances have occurred that have resulted in the current status.  If the employee has difficulty answering these questions, they may not have a solid grasp of the underlying issue.  Your questions will give you the opportunity to educate the person so they may be able to apply the knowledge to a similar situation in the future.

2.   It allows you to “infect” others with your strategic thinking.  I agree that not all questions or issues pertain to strategic matters, as some are tactical in nature.  But, by posing forward thinking questions such as, “how does this affect our business in future years” or “what is the cost associated with finding a solution”, you force your team to think in line with the strategic goals of the company.  This affords you the opportunity to shape the problem solving techniques of your employees in a beneficial manner.

3.   It builds the confidence of your team.  Sometimes an employee is searching for a quick answer, and there will be moments when quickness of an answer is appropriate.  However, in the vast majority of cases, when you take a few minutes to ask relevant and pertinent questions, you foster a level of thinking in an employee that enhances their skills and grows their confidence.  In a subtle way, they become more influential by feeling empowered with their knowledge. 

Learning to counter the urge to always provide answers can be a challenge.  However, developing a habit of asking questions will sharpen your effectiveness as a leader and promote the growth of your employees.