Steve Kaplan's Blog

…Not just a food-safety strategy, but a way to keep your cool.

Make it a practice to pause for ten long seconds before you react to new information, whether positive or negative- employee complaints, unhappy clients, potential big contracts, or anything else.  This grace period helps ensure that your responses are well considered.  It also trickles down to the employee, who may emulate your behavior and respect you for assessing the news carefully rather than flying off the handle.

Not long ago I was sitting in my office after a three-hour client negotiation, my head threatening to explode and my patience worn thin enough to see through. Suddenly, an employee burst in to announce that she had a brilliant idea: Turn off all the office lights for 15 minutes twice a day. She thought it would be a great way to relieve stress; I thought it was a great way to make us the laughingstock of the industry.  Still, I resisted the urge to reject her idea as ludicrous, and, most likely, offend her in the process.  Instead, I left the room to compose myself- for a whole series of ten-second pauses. When I returned, she proceeded to elaborate on the theory behind the lights-out proposal, I politely suggested that as intriguing as her idea might be, we just couldn’t risk losing thirty minutes of productivity a day, especially since we were growing like crazy and could barely handle things in the time available. Rather than leaving in a huff feeling berated or belittled, she saw my point and left feeling good about herself and  her role in the company. She also appreciated having face time with the person in charge.

This is my fifth of my five keys to leadership.

Excel during adversity. It’s easy to be a strong leader when everything’s growing according to plan, but what do you do when the business environment hands you a lemon? Do you head for the door? Scream at your employees? Or do you roll up your sleeves? When handled properly, adversity can bring your team together in ways that winning never could.

For instance, suppose you’ve just learned than an employee stole from you or your biggest client took a walk. Here’s how you should handle it:

Remain calm. The entire company is watching you and will take its cues from your initial reaction. Keep a cool head.

Stall. Whatever the bad news , you need time to craft an appropriate response. Make clear that you’re troubled by the news and intend to make the matter your top priority. Then act.

Dig. In all crises I’ve faced, the bearer of the bad news rarely knew the whole story. If a client is bailing on your company, for example, find out exactly why. Perhaps the client is merely flexing his muscles over a disagreement with one of your employees and can still be saved. If not, you’ll still need to explain the situation to your employees.

Analyze. After you have all the facts, consider them from as many angles as possible. Put yourself in the shoes of whoever is unhappy or causing your trouble.

Plan. Now develop a plan of action. Is the client truly thinking of leaving? Suppose you learn that this client ran roughshod over your employees. If you still need the business, then find a way for the client to save face without disciplining employees who may have done nothing wrong.

Execute. After choosing a course of action, implement your plan.  When you call the client back, be deferential.  Let her know that you looked into the problem and removed the employee in question from the account.  That will make the client feel valued.

Communicate. Once you’ve decided what you’re going to do, inform everyone who needs to know.

This is the fourth of my five keys to leadership.

Maintain the homefront. Nurture and support employees’ personal lives. No, I’m not suggesting that you run a dating service- just share the wealth a little and do what you can do to make your employees’ home and social lives easier. Once in a while, spring for an inexpensive lunch. Plan for an open house for employees, suppliers, even clients. Let your employees bring a spouse or date to holiday parties; excluding significant others can generate animosity toward the company and stress in the home.  When in doubt or under budget constraints, opt for less extravagant but no less inclusive celebrations.

This is the third of my five keys to leadership.

Be approachable. Whether you have one employee or one thousand, it’s a huge mistake to isolate yourself. Every Monday, I would wander down to the mail room and strike up a conversation with Phil, the mail room clerk, about sports, weather or current events- just small talk. Phil’s job took him to all departments, all employees. He was very social, turned into the pulse of the company; everybody liked him and enjoyed chatting with him.  I enjoyed Phil’s company too, but aside from that, I learned more about my employees’ concerns during those impromptu five minute sitdowns than I ever could from an hour-long meeting with my managers. What Phil knew about the concerns of the rank and file simply would not have filtered up the management chain on its own.

I once asked a renowned Chicago surgeon the secret to his success. His answer: great pizza. He knows that even the best  surgeon in the world wouldn’t get far without a crack team in the operating room, particularly first-rate nurses. So every month, he orders pizza for his entire staff. In December, he throws them a lavish holiday lunch. The rewards come back in spades. Nurses claw over one another to work with him, and he’s the one surgeon who has no trouble getting overtime help.

A little goes a long way. I’m always amazed at how much mileage you can get from a dozen doughnuts, a five-dollar box of chocolates, or letting an employee go home early once in a while.

This is the second of my five keys to leadership.

Be consistent. Your employees need to know what to expect from you. If you’re rational one day and volatile the next, or if you change the rules of the game without warning or apparent reason, those you’re trying to lead may become confused and ineffective. Being consistent calms the anxiety that builds up under pressure of growth. If they know how you’re going to react, they can adjust their actions to meet your expectations.

How are you consistent? Or better yet, what have been the consequences you’ve faced for being inconsistent?

This is one of my five keys to leadership.

Lead by example: Your employees will take their cues from what you do, not what you say. If you demand long hours, yet walk out the door at noon, how seriously will people take you? When I was running my businesses hands-on, I often left e-mails or voicemails for employees after midnight and on weekends. I also let it be known that when I wasn’t at work, I spent plenty of time with my family. They got the message- and soon followed my lead. The result was a culture of hard work in a family environment.

Leading by example goes far beyond the hours you keep; it defines your company’s personality. Do you treat your employees with respect or suspicion?  Do your employees hear you working out how to best serve your customers or how to chisel a few extra bucks out of them?  Do you make fun of employees behind their backs or praise them to their peers? Do you follow up on your plans and orders or issue and forget? Do you keep your promises or look for loopholes? Your employees, for their part, will mirror your tone and demeanor when interacting with other employees, clients, suppliers, and customers.

How do you lead by example?

Entrepreneurs, almost by definition, are driven, but the truly successful are those who motivate and inspire others to push beyond their limits. From my own experience and that of other successful leaders I’ve known, I’ve distilled the following keys to effective leadership during times of company growth. Although leadership styles may vary, following these precepts will keep your train on the tracks.

1. Lead by Example

2. Be Consistent

3. Be Approachable

4. Maintain the Home Front

5. Excel During Adversity

Over the next few days, I will elaborate on each of the five keys to leadership. These 5 leadership precepts are CRUCIAL to running a company, and I hope you find these tips helpful.

Anything you think I’m missing? How do you lead effectively?

The Business Proposal. A crucial part of landing the deal you want. This is not something you want to  brush off. A few tips for effective business proposals:

To maximize your chances of preselling your product or service:

• Submit your proposal in the format your prospect prefers. If the prospect prefers a certain way- and takes the time to specify it- take the hint, and do it that way.
• Use the prospect’s terms and language. This will position you as an insider. Listen to everything that’s said when inside the prospect’s business.
• Submit your proposal without delay.
• Archive successful proposals electronically as templates for future proposals.