Management Blog

Extraordinary worker efforts for rich rewards

American steelmaker Nucor's 387% return to shareholders over the past five years tops the performance of almost every other company in the Standard & Poor's 500-stock index. But Businessweek reports that what makes this Rust Belt industry a star is that it "treats its workers like owners".

A key driver of worker buy-in to the company and ongoing innovation is Nucor's pay system. Almost every worker is paid relative to their performance or value contribution. Specifically a steelworker at a different mill company can clock up $16 to $21 an hour. The base rate for a Nucor worker is nearer to $10 and hour, but a production bonus for defect-free steel by a worker's whole shift can deliver three times the average steel workers disposable income to the Nucor employee.

The late F. Kenneth Iverson, founder of Nucor, summed up this then radical business approach with, "Employees, even hourly clock-punchers, will make an extraordinary effort if you reward them richly, treat them with respect, and give them real power."

UK predicts soaring sickies during World Cup

The 2006 World Cup is big news - in Australia excitement is growing due to the return of Socceroos to the competition. But in Britain football fever is so high that businesses are now preparing for the inevitable wave of absenteeism that will undoubtedly occur during the tournament. 

Research from consultancy firm Croner suggests that UK companies will see a surge in employees taking sickies (dubbed 'World Cup-itis'), as many as one in seven young men, when the competition begins in June.

The firm reported 13% and 4% British women said they had called in sick to watch a match, or to recover from match-related drinking the night before. This figure increases to a staggering 16% within the 18-29 year old age bracket.

Employment Services Director at Croner, Richard Smith, believes employers should be proactive in their approach to sporting match-related absenteeism:

"Rather than worry about employees being struck down with 'World Cup-itis' on match days, they should be thinking of how temporarily relaxing the rules can have positive returns for their business. We're strongly advising employers to provide on-site TV access to important games and to encourage employees who wish to enjoy alcohol during games to request annual leave around match days. Annual leave policies should be updated with clear guidelines issued to all employees, emphasising that unauthorised absence could lead to disciplinary action."

Innovation about finding creativity and growth, not technology

Businessweek has just published the results of a new survey in conjunction with the Boston Consulting Group on the World’s Most Innovative Companies.

Innovation has moved from the 1990s focus on technology and control of quality and cost, to re-jigging organisations that are already wired for efficiency, for creativity and growth.

"There are a lot of different things that fall under the rubric of innovation," says Vijay Govindarajan, a professor at Dartmouth College's Tuck School of Business and author of Ten Rules for Strategic Innovators: From Idea to Execution.

"Innovation does not have to have anything to do with technology."

Searching for the right quote

Never be stuck for an inspirational quote again... Wikiquote has thousands of quotations, proverbs and words of wisdom in easy to search format.

Quotes are also categorised for browsing, under themes, people, literary works, movies and more. There are also specific pages on leadership and its many sub-topics.

The open source site or wiki can be edited by anyone, so if you have a favourite quote why not add it?

Investing in organisational culture

Culture can be a significant competitive advantage and it is not easily replicable. However, most organisations are not investing in culture at the level that will set them apart from their competitors.

To build the case for investing in cultural improvement requires a thorough understanding of the cost of the current culture. The business case is strong in the areas of speed, accountability, rigour, collaboration and attractiveness to customers and employees, and it is in these areas that the link between culture and performance is most easily demonstrated.

In a chapter extract from The Power of Culture (AIM, 2004), author Carolyn Taylor explores selects three highly desirable cultures (Performance, Customer-Centric and One-Team), describes each, shows their impact on performance and provides an overview of what is required to achieve them.

"Turning the Soft Stuff into Business Advantage" by Carolyn Taylor in The Power of Culture

Traps for young players

A column in Kiplinger's Personal Finance has outline 'Seven Career Killers' for young workers entering the business world, noting:

Your behavior, attitude and appearance will play important roles in finding success, not only in your first job, but throughout your entire working lifetime.

Apart from the old favourites of lying on one's resume and stealing office supplies, the site details other traps for young players:

1. Procrastinating
2. Having a sense of entitlement
3. Settling into your job description
4. Avoiding office politics
5. Not being a team player
6. Not dressing the part
7. Failing to network

Online advice for weary travellers

British Airways offers travellers a Jet Lag Advisor tool that allows you to input time zone information and retrieve ideal sleeping patterns (and when to seek and avoid light).

Other suggestions for minimising jet lag and information on the body's internal clock are also includedon the site, such as:

• Try to avoid important business meetings scheduled at these times of maximum sleepiness at home
• Try not to be in the light at your destination if you would normally be in darkness at home. You can do this by staying indoors or wearing sunglasses when you go out
• When planning meals try to keep your stomach on home time. So if it is dinner time at your destination, but breakfast on your home time, try to have something light, rather than a full heavy dinner that your stomach may not be ready to digest

Avoiding word confusion

Confusing Words is a website containing the proper use of commonly misused words that can trip you up.

Some of the inclusions are homonyms (words that sound alike but are spelled differently, such as there, their and they're), and others are words that are often commonly confused (such as affect and effect).

It's a handy site, but it is American so be aware of any spelling differences for Australian audiences.

Move over Gen Y, Gen M is here

Because we needed another alphabetical descriptor in generational theory, the multitasking generation (or Gen M) is here.

Time ran a cover story in March on the notions behind this new generation of children who grow up "media multitasking" - listening to iTunes, watching a DVD and instant messaging friends all at the same time.

...Social scientists and educators are just beginning to assess their impact, but the researchers already have some strong opinions. The mental habit of dividing one's attention into many small slices has significant implications for the way young people learn, reason, socialize, do creative work and understand the world. Although such habits may prepare kids for today's frenzied workplace, many cognitive scientists are positively alarmed by the trend.

"Kids that are instant messaging while doing homework, playing games online and watching TV, I predict, aren't going to do well in the long run," says Jordan Grafman, chief of the cognitive neuroscience section at the National Institute of Neurological Disorders and Stroke (NINDS).

The 2005 Kaiser Family Foundation survey found that Americans aged 8 to 18 spend an average of 6.5 hours per day using electronic media. But due to the fact they are often using multiple types of technology simultaneously, this actually equates to 8.5 hours per day.

Making the right decision

Decision-making traps and how to avoid them are the subject of a recent AFR BOSS article.

The authors note that when considering a decision, the mind gives disproportionate weight to the first information it receives. That can be as simple as a comment from a colleague or a statistic in the morning paper.

Managers can improve their decision-making by using the following techniques:

• View a problem from different perspectives. Instead of sticking with your first line, try using alternative starting points.
• Think about the problem before consulting others.
• Seek out information from a variety of people.
• Avoid anchoring those from whom you solicit information or counsel. Tell them as little as you can about your own ideas, estimates and tentative decisions or you could find that your preconceptions come back to you.
• Be wary of anchors in negotiations. Be sure to think through your position before you begin any negotiation. At the same time, look for the opportunity to use anchors to your own advantage.