Signature on the Front of the Check

We heard an interesting story of a small business. The charismatic owner of a company wanted to launch a new product based on his own idea. When the product was ready to go, the owner presented to the sales staff. The presentation included the benefits of the product and instructions on how the product should be pitched to customers. At the end, the owner asked the sales team if they had any questions and what they thought of the new product. One younger salesperson raised his hand asked a few pointed questions to get more clarification on the market that this new product was intended for. Not particularly satisfied with the owners answers and viability of the new product, the young salesperson then asked, "Maybe next time you might consider asking the sales team what they thing the market needs are."

The owner responded immediately and quite succinctly, "when you signature is on the front of the check and mine is on the back, then you can tell me what to do." This ended the question and answer session. It probably ended any further questions or comments of significance coming from that young salesperson. It probably confirmed to everyone else not to question anything coming from the owner.

This is not a unique story. Reputedly, when Henry Ford II fired Lee Iacocca he said something to the effect of the name on the World Headquarters Building being Ford and not Iacocca. It seems to be more pointed in smaller companies where the owner or president is in contact with larger numbers of the personnel and workforce of the company on a daily basis. Any statements by the owner/president strongly influences the culture of the company. Statements the "when your signature is on the front of the check" have a profoundly stifling effect on the culture of the company.

If the owner/president is a business genius a la Steve Jobs, it really matters not. The bullying style then drives the culture and makes it perform beyond what any of the people thought might be possible. But, for most of the rest of us, lesser mortals that we are, that bullying style does not yield optimal results.

Most owner/presidents are pretty savvy business people. They might have had a great, almost genius idea or model when they started their business. Often, over time, they do not realize that the business environment has changed and their genius idea or business model is no longer an advantage and may well be a disadvantage. The worst bullies believe quite simply that they know more than everyone else in their employ. They run things with a "my way or the highway" style. It may not really matter as businesses can be profitable in spite of a stifling owner/president leadership style. Such businesses could be more profitable if the people were allowed a bit more leeway to have input in both matters of both strategy and tactics.

As an owner/president, you may well sign the front of the check. You hare paying the people who get the checks to do a job. Do not make the mistake of not getting the full value of what you are paying the people. They are doing their jobs every day. They will see things in their area that you will never know. Why not take advantage of that knowledge? Why not seek it out?

A basic tenet of quality management is that every job in every organization has a labor and management component. Allow your people to manage. Insist on excellence. Push people to be more than they think they can. But, do not stifle them. They will then operate in fear or frustration and not do their best... they will just do enough to keep getting the checks which they know they only sign the backs of.