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An Ernst & Young Entrepreneur of the Year 2010 and CEO of technology company Asperity Employee Benefits - Number 2 in the 2011 Sunday Times Tech Track, Glenn Elliott shares his thoughts and advice on starting a business, building a team and culture, focussing on clients and keeping investors happy.

After 14 years, 2 successful startups (plus a few failures "that didn't count"), an acquisition from a big bank and a £25m acquisition for his own business, Glenn's got experience and battle scars to share.

Running a business that services over 700 clients globally including many household names, he's built a business with an amazing culture (two stars Sunday Times Best Small Companies) and an amazing team of happy people servicing happy clients

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4 posts tagged Business culture

The 5 enemies of honesty. Defeat them and build an honesty culture.


No-one really sets out at work to be dishonest, at least no-one that we’re interested in anyway. But that doesn’t mean that honesty doesn’t sometimes take a holiday. When it does it’s important to remember that lack of honesty is rarely a deliberate intention, it’s just that pure honesty can be fragile and it can easily be compromised.

To kick us off, let’s look at the 5 enemies of honesty. Because if you understand these you can start to foster an honesty culture.

  1. Pride
    Top of my list is Pride. No-one trying to do a good job likes to admit that they got it wrong, even when they know. That doesn’t mean the world is full of people refusing to admit that they got it wrong - that would be awful. But it does mean that many of us ignore the writing on the wall and keep flogging an idea or project after the point we honestly know its not working because we’re not ready to accept the failure yet.

    I can certainly remember plenty of examples when deep down I knew something wasn’t right or wasn’t working, but I just wasn’t prepared to admit it even to myself, let alone anyone else yet.  In many of those cases my pride was getting in the way of my honesty. The result of this is that we or I kept doing things for longer than we needed to or should of. And the business suffered as a result.
     
  2. Fear of failing.
    At some level, all of us fear failure. For some people its the very thing that drives them forward. I am both afraid of failure and I expect failure. I accept failure as a normal part of my life and as long as it is contained and within reason I’m very happy with it. It’s fear of unconstrained, disastrous failure, or repeated failure that keeps me awake at night!

    One of the first things that everyone at Asperity learns on their induction day is that getting things wrong is inevitable and a positive consequence of innovation. If we are afraid of failure we cannot innovate because innovation, doing things that are new, is always risky and the whole point of innovation is that you don’t know exactly what will happen.

    If you have a culture which doesn’t embrace failure as an acceptable part of innovation, you’ll end up with a blame culture where people are frightened to be honest about what has happened and that gives you really bad business information. A blame culture is paralysing by itself, but the poor business decisions that it informs is really damaging.

    You know you’ve got a great culture when someone is so unafraid of failure that they can come into your office and say that they’ve just wasted the last 2 months of a project, but not to worry because they’ve learned a lot and they’re stopping the project or changing track now and that will stop us from wasting the next 2 months. That’s a real level of honesty thats worth having. If you don’t have this in your team or organisation then make a start to getting it by being honest with your team about the fact that you’d like it!
     
  3. Fear of confrontation.
    Many of us at least sometimes try and avoid confrontation - its only natural and human. Confrontation is unpleasant, takes up brain space and makes you tired. Of course we avoid it.

    Fear of confrontation, and the discomfort that comes with it, is one of the most common reasons for not being honest with members of your team. And that inhibits their growth and their development. In extreme cases it inhibits them making changes to their work or their behaviour that could get them promoted or even safeguard their job.

    Fear of confrontation is the root cause between not being straight with someone when you feel that honesty will hurt them or be uncomfortable. It’s where phrases like “reading between the lines” and “beating about the bush” come from. I’ve lost count of the number of times I have spoken to a manager who is concerned about the performance of one of their team and when I say “Have you spoken to them about {whatever the performance issue is}” and the reply is “Well not in those words…

    It’s not just managers with staff who need to practice direct honesty, its all of us with our colleagues. Sometimes departments don’t work well together, miscommunication happens and feathers get ruffled. But how often are departments really honest and straight with each other in a non-agressive way to straighten things out and find a cure. Not often enough and not early enough from what I see regularly.

    Fortunately you get better at managing confrontation with experience. So keep forcing yourself to do it, in a gentle and thoughtful way. If you’re seen to be being genuinely honest and sensitive with people for the benefit of their progress and the company then your confrontations will go smoothly and positively.
     
  4. Excess optimism
    Some of us are in jobs where we ride a roller-coaster of ups and downs as standard. Sales is one of those areas. Sales people and Sales managers need to keep optimistic otherwise they’d drown on the difficult days. Having a positive outlook is essential in those roles, but optimism by its very nature will skew your view.

    Whilst optimism in many jobs is a good thing, an excess of optimism, like an excess of most things, is the enemy of honest, clear communications. An excess of optimism can undermined your credibility, especially if the passage of time shows that you are often off the mark.

    Excess optimism is sometimes a wilful refusal to see reality and its important to watch yourself and be aware of when your optimism might be taking over. My advice to sales managers is always to be optimistic and inspiring to your team, to push them to achieve their best, but be pragmatic and realistic in your communication upwards, to manage expectations. It’s always better to over-deliver rather than under-deliver.

  5. Lack of thought
    You might think that this one is odd but I’ve thought a lot about it. Sometimes, because of the pressure of events, we speak or write before we think. We communicate without the full facts and without a full consideration because we think that speed of answer or speed of action is more important than quality.

    You might think I’m being harsh by categorising this as an enemy of honesty, after all - aren’t we acting if good faith if we speak with the best facts we have at the time? Well the answer is yes, but only if you’re a politician, because that’s their “get of jail free card” for most things.

    Being a manager or a leader in an organisation is a responsibility and with that responsibility to you need to develop a sense of pace and measure. And if you’re going to embrace an honesty culture and reap the rewards that that will bring, you need to be certain of the facts you’re being honest about. And sometimes that will mean pausing for thought, research or reflection before opening your mouth.

In many of these examples, the enemies of honesty is impacting on clarity of judgement. In fact in most scenarios it’s ourselves that we’re not being honest with the most. If you can develop an almost pathological attraction to honesty, openness and transparency you’ll develop a clarity of purpose and culture that is unbeatable.

A wider look at employee benefits - What’s going on in Silicon Valley and what can we afford?

Rachel Woodhatch at Nissan Motor Co Australia gave me this link back in November last year and I’ve used it several times since. It’s a great infographic produced by those nice people at ResumeBear.com showing the range of employee perks employed by some of Silicon Valley’s most cutting edge dot coms.

They’re certainly more adventurous than those we normally see and many, if not the majority are unpractical in time, space and money for all but the wealthiest of organisations, but they certainly get you thinking about employee benefits in much wider sense than the traditional life insurance, pension, medical insurance list.

“Good” employee benefits please the CFO and the HRD

Not all employee benefits have to be expensive, in fact I always say that the definition of a good employee benefit is that it is worth much more to the employee than it costs the employer. If it isn’t then the employer might just as well give the employee money. Good employee benefits should make sense to both the CFO and the HR Director - they should be a no -brainer in terms of bang for their buck.

Here are ten of the less common employee benefits that we offer at Asperity - in no particular order (click here for the full list of over 25). All of them are affordable to small organisations, just like us.

  1. Staff share scheme - Our staff own 5% of the company. On our last investment, they shared £1m between them, so it’s real.
  2. A really good performance recognition culture – we’re not afraid to say thank you.
  3. Free private doctor service if you’re not feeling well.
  4. Special enhanced discounts for high-street shops, reserved especially for our own staff.
  5. Monthly staff lottery - 1st prize £1,000, 2nd £500 and 3rd £250 (in UK, similar in US and Aus). We pay the tax as well. (People love this one!!)
  6. Extra day off on your birthday.
  7. £250 bonus if you suggest someone who we recruit.
  8. For mobile staff – an iPhone and a MacBook Air.
  9. Quarterly Business Update – every 3 months we have an afternoon out to review company performance and what’s coming next
  10. Company provided fruit, snacks, nibbles, bread and breakfast items. Drinks fridges on all floors.

And, of course, our staff also get the biggest and best employee discount service, a Childcare payment service that saves you £933 a year on childcare costs and the ability to save 40% by getting a bike for all/part of the journey to work through a special programme (all three are products that we provide to our clients).

What’s important when thinking about employee benefits is not to think of them as a luxury perk, to be discarded as soon as any hard times are coming, but to choose the ones that really fit your culture and workforce, that excite them and make them love the place they work at and that make good financial sense in good times and in bad.

What is culture anyway? And the 5 things I ask of all new staff.

I read an article this weekend called ‘Here’s what happens when you hate your job” by Brent Daily (read the full article on Mashable here).  He talks about getting a new job and how important a culture fit is for both the employer and the employee. Brent suggests that when evaluating a job at an interview you think about these 4 questions :

  • Decision-Making. Who makes the decisions, how are they made, who gets credit?
  • Feedback and Rewards. How and when can you be expected to get feedback? What do the top performers do to be considered such?
  • Team Dynamics. What needs fixing? What are the expectations of new team members? What’s a meeting sound like (i.e. thoughtful, raised voices)?
  • Management. Is your manager a top performer or is your star going to dim simply by being in his/her orbit?

That got me thinking - what is “company culture”? In Brent’s post it’s about decision making, feedback and dynamics. He’s not wrong, those things are definitely important, but how else do we describe it?

I think on aspect Culture is the set of values that binds you together as a group of people working in a strong unit . In organisations that have a strong culture, there is a strong sense of what it means to be there, of how to behave, how to decide and of what is important and what is not, of what is acceptable and what is not.

Culture is important - it’s the unwritten rule book of how to behave.

At Asperity, I still deliver our Culture & Values Induction to every single new starter - that means running the programme every 2-3 weeks in London and again whenever I’m in Sydney or New York. We use video versions of it as well if I’m in the wrong part of the world when we need to start new people.

Culture is the most important thing that we have in an organisation because it’s the unwritten rule book of how to behave. I promised my staff, and our investors that I would do everything I could to protect our culture as we grow, and I’d encourage anyone in business, whatever organisation or department you are leading to make time to nurture and re-enforce your culture. Because it does take time to nurture, especially if you’re growing quickly and adding new staff all the time.

Whilst Culture might often be an unwritten rule book, our Culture & Values induction is an attempt to write it down and communicate it, so our new starters know how we behave, and how we’d like them to behave. It’s amazing how many times people have said to me afterwards that it’s all common sense but that no-one has ever discussed culture with them before when starting a new job.

What is in Asperity’s Culture & Value’s introduction?

In our Induction, I start with a bit of company history, explain how we started, why we started and what we hoped would work. I explain that our niche (employee discounts) was in a spiral of decline back in 2006 (Poor service & technology => Low usage by employees => Low value to employers =>Providers couldn’t charge much/anything => No money to invest in product & service, then repeat spiral). I explain that my hunch was that if you provided a great service with genuine, long term deals that people could rely on then employees would use the product, employers would value that and they would be prepared to pay a fair price for that.

I explain what we stand for in the market, why we make the decisions that we do and what are the immovable pillars of our product (high engagement, high quality, innovative technology and hard working communications) and how they have made us successful.

Next, I contrast our growth and success against our competitors in our small market and show the forecasts and plans we have for the next 4 years. We’ve always believed in employee share ownership at Asperity and we have an Employee Share Scheme that puts 5% of the value of our company in the hands of our staff. That’s important to us and it’s important to me to make sure that our staff know what that means for them and how we need them to contribute so we can become the company that we want to. We need people to take ownership, take risks, innovate, deliver on promises and keep challenging - always being unsatisfied with where we are and striving for better.

So with all of the basics done - our history, where we’re going and how we need people to contribute, we’re left to talk about culture and the day to day behaviour that we expect. So without doing all of the details, I thought I’d share with you some of the key points of that section. We’re always practical and pragmatic at Asperity, so we talk about our culture in with simple words and practical examples.

Here are five things we tell and ask of all of our new staff:

You are our brand.  Your conduct and choices are the most important thing we have.

  • The way we deal with people every day - whether they are  customers, employees, clients, suppliers, partners, channels is the most important part of our brand.
  • We should always be polite, respectful, decent, honest and have integrity - even when we disagree.
  • You can be tough, single minded, focused and results driven without being mean, rude, disrespectful or discourteous.
  • We want to win, we want to grow our business. We fight hard but always fairly - we don’t need to cheat or lie.

Be nice to people whenever you can. Treat them with respect - it’s a small industry and you don’t know when you’ll meet them again

  • The recruiter who worked hard on 3 candidates for you but you didn’t hire - she might have the right one next time
  • The guy at the small supplier that you don’t really need today might work for a supplier you really need in the future.
  • The HR Manager at that tiny company giving you a hard time be worth little today, but tomorrow she may be HR Director at a major employer you want to work with

Be reliable, organised and available.

  • There’s nothing worse than promises that are broken or expectations not met
  • Phone calls not returned or delivery dates not met are the most destructive things in a business.
  • Clients and employees will forgive almost any genuine mistake as long as they know you are fixing it and you are responsive
  • Acknowledge phone calls and emails quickly. You might not be able to fully answer or deal with the issue but let them know you are working on it
  • Make sure you organise yourself to deliver - whatever that means for you.

We will get things wrong sometimes. It’s OK. Apologise more than you need to. Compensate more than you have to.

  • You can easily turn bad service or a cock up into a positive memory for the client.
  • Apologise first. Never dodge a bullet.
  • Fix it quickly. Compensate if you need to.
  • Apologise again. Check the remedy has worked and is enough. Find out what else we can do.
  • Find out how we can avoid it happening again. We must learn from our mistakes.

Deliver our brand every day

  • be clear - use straight talking, not jargon
  • be friendly - we don’t hide behind complexity or pompous concepts
  • be straightforward - we’re practical and pragmatic
  • look to the long term - we understand that relationships need give and take
  • deliver on your promises

How do these match the feel of your organisation? Do you have a similar set of rules in your organisation or business?

Ultimately, Asperity’s culture is about honesty and trust. We accept controlled failure because you have to if you want to innovate - it’s not possible to be bold and change things if you’re terrified of what will happen when something goes wrong. But that doesn’t mean that you don’t take responsibility - because that’s crucial. Responsibility is something that strong people take, blame is something that is given out when a culture is weak.

So this week, wherever you are, whether you work for me in Asperity, or for someone else in another organisation, have a think about your culture, about what you understand about it and what’s important and see what you can do to nurture and tend to your culture this week.

Getting what you want in life. An easier way.

Whether it’s in business or at home, we all spend a lot of time trying, in various guises, to get what we want.  You might be working really hard to make something that you want, trying to persuade someone to buy something from you or trying to persuade a team or person to do something or work in a certain way.

I’ve seen many different approaches to this challenge from CEOs, Chairmen and Chairwomen and all levels of managers and professionals. A common approach in those that are seen as driven and successful people, is a confident, assertive and in some cases an aggressive approach. There are many business people who are revered for their sharp words and uncompromising attitudes. Just think of Sir Alan Sugar in The Apprentice and the famed “interview from hell”. It’s much easier to think of successful people who shout and demand than those that command influence in other ways - but why is that?

Now in the interests of full disclosure here, I have had my moments of ‘extreme focus’ myself where I might have left little of my needs to guesswork, but they’re relatively few and few between (at least in my own mind).

On my mind today is one of the approaches that can often be underused, and is one of the simplest - a smile and good manners. Looking someone in the eye, smiling and saying please and thank you and genuinely meaning it is actually a tremendously effective way of getting someone onside - it’s amazing what someone will do for someone who treats them well and is nice to them.

What sort of person do you want to be?

I’ve been in the business of Client Services for almost all of my life, running a design and marketing agency for 7 years then Asperity Employee Benefits for the next 6. Many of my personal friends, including my partner, also run businesses that have similar types of client service at their heart, in industries as diverse as fashion, IT and TV. So I often end up reflecting on what sort of client I want to be to the service providers that we use and I decided a long time ago that we would be everyone’s nicest client.

Meryl Streep in The Devil Wears PradaThere are two extremes in getting what you want aren’t there? You can be the ball-breaker, never happy, let nothing go dragon like that woman in the Devil Wears Prada movie, you know the one who is never happy with anything that her PA does. Or you can be the one that every supplier loves - clear, honest, straightforward and nice. One makes demands and sets high expectations, the other asks for favours, says please and thank you a lot but can still ask for the earth. 

So which one of these are you? Whether you’re thinking about internal suppliers, external suppliers, staff or colleagues, how do you get what you want? And why? - is it a product of testing that you’ve decided which one is the most productive for you? Or is it a product of experience - people have treated you one way and you mirror that to others?

Being nice doesn’t make you any less focussed.

Being nice, decent and good to people doesn’t mean being a pushover or easy. A video and animation production agency we use has recently done two “all-nighters” to deliver things that we needed in a hurry. Both they and we know the reason we were in a hurry was that we didn’t think to commission the project early enough (almost always the reason for rush projects from clients). We’d had the ideas, procrastinated, got involved in something else and then remembered that time had moved on. But because we have a strong, equal relationship with them built on mutual respect we didn’t have to lean or be demanding to get them to pull out all of the stops to deliver for us, they naturally wanted to do do it, they wanted to please us because we’re a good client and we treat them properly. Isn’t that a better way of working that the aggressive demanding “ball-breaker” approach that we can all think of examples of?

Business doesn’t need to be adversarial to be successful. You can treat people with respect and decency and still deliver as an ultra high-performance company. In fact, to be a genuine high performer I think you get much further by being as good and decent as you can be with everyone else.

Business behaviour is business brand - isn’t it?

One of the things I train all Asperity staff in at our culture and values induction is that they are our brand and the way they choose to deal with people in business sets our brand every day. I still do every staff induction, worldwide - that means at least once a fortnight and with video versions for when I’m in the wrong country and I think setting the tone for business is one of the most important things that a CEO can do.

Asperity people are driven, focused, goal-oriented and want to win. We provide the best employee benefits programme in then world, so it’s natural and right that we want to deliver it to as many people as possible. But despite being goal-focused, results-orientated and target-obsessed, we’re not mean, ill-mannered, deceptive or rude - we don’t need to be. Asperity staff never lie, cheat, deceive or pull the wool over anyone’s eyes because I think, in business and in life, that what goes around comes around. I think largely that you reap what you sow and if you want to reap great rewards you need to set a high standard in all aspects of your corporate behaviour. And a very big part of that in my book is being as nice as you can to people, as much as your can.

The North Wind and The Sun

Thinking about this today reminded me of a story my Dad used to tell me when I was a boy. I remember it as “The story about the wind and the sun” and it was many years later that I learned it was one of Aesop’s fables (this one if you want to read it properly). Anyway, here it is as I remember it from my Dad.

“One day, the Wind and the Sun were talking and both got into a conversation about who was the strongest. The Wind, bossy as always, was certain that he was the strongest, whilst the Sun, beaming and radiant was confident that she was the strongest.

Look here, said the Wind, I’ll prove it to you. You see that man down there, with the raincoat and the hat? I’ll show you how strong I am by blowing his coat right off him.

Ok said the Sun, let’s see.

So the Wind took aim and he huffed and he puffed and he heaved and he blew and he send wind down with all of his might. But with every gale and bluster from the Wind the main just pulled his raincoat even tighter. By the end the main was wrapped more tightly that the Wind ever thought he could be, despite the Wind’s hard efforts.

It’s no good, it’s impossible, said the Wind. It can’t be done, he sulked.

Ok, I’ll have a go, said the Sun. 

And the Sun put his best smile on and beamed his smile across the heavens, He beamed and smiled and shone just as much as he could. And as he did, the Man looked up, smiled and took his raincoat straight off.”

So have a think about who you’re going to be today and what could be most effective for whatever you have to do - being the Wind or being the Sun.

P.S. For the record, the agency that pulled out all the stops for us in the story above, were our wonderful friends at video production agency Dreaming Fish (Twitter @DreamingFish and @designbygreg).

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