From the monthly archives:

October 2010

Are you hiring for culture fit–like Warren Buffett?

by Sheila Margolis on October 27, 2010

In the Wall Street Journal article, “Buffett: Combs Is ‘a 100% Fit’,” culture fit is described as a critical criteria for selecting Buffett’s heir apparent:

Mr. Buffett says he and Mr. Munger (Berkshire Vice Chairman) were sold on Mr. Combs not only because of his ability and intelligence but also because they were convinced he would fit in to Berkshire’s no-​​fuss culture.

Buffett knows that a culture can change when a founder leaves an organization, and this can have a significant impact on the company and its future. Buffett states:

He is a 100% fit for our culture. I can define the culture while I am here, but we want a culture that is so embedded that it doesn’t get tested when the founder of it isn’t around. Todd is perfect in that respect.

So how do you determine if a candidate for a job is a 100% fit?

Companies screen applicants on at least two levels. First, they evaluate the candidate’s fit for the job. When evaluating an applicant for job fit, companies consider these questions:

  • Does this person have the knowledge and skills necessary for this job?
  • What past experiences have prepared the applicant for the job?
  • Do the strengths of the applicant match the requirements for the job?
  • Will this person be sufficiently challenged doing this work?

But more and more organizations are adding a second layer of questioning: to evaluate the candidate’s fit with the culture of the organization. When evaluating an applicant for culture fit, companies think about these questions:

  • Is the work of our organization something that is meaningful to the applicant?
  • Are the applicant’s values in harmony with the values of the organization?
  • Will the person naturally perform in ways that are consistent with how we do things here?

How well a job candidate fits the culture of a workplace can make the difference between job search success and failure. Those candidates selected on the basis of culture fit—in addition to job fit—will contribute faster, perform better and stay longer with the organization. Where culture fit is neglected, the burden is shared by both the employee and the company. Working at a company with values inconsistent with yours can be difficult, stressful and unrewarding. And if the new employee is the heir apparent, then the future of the company is at stake.

Culture fit is important for all potential employees. A person’s values are difficult to change. When you are not a fit with the culture of an organization, that fit cannot easily be altered through training and development. It’s just not the right place for you and not the right life for you to live.

Seeking that 100% fit is important in hiring employees and is essential in picking top leadership. This is why many organizations promote succession planning where internal candidates–who are known entities–are the candidates who get the top positions.

So, if you are a company, be sure you’ve defined your company’s culture–particularly your core culture. Use an organization-​​wide process to define the organization’s Purpose and Philosophy: the central and distinguishing attributes that are the character of the organization and the cause that it has served over the years. You must also know the Priorities of the organization so that you can screen to ensure that candidates naturally practice the values needed to achieve your goals.

By understanding the candidate and an organization’s core culture, you can screen for culture fit. A successful organization hires people who want to live the culture effortlessly.

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Is your major one that pays well?

by Sheila Margolis on October 25, 2010

The Wall Street Journal article “Engineering, Computer-​​Science Pay More Than Liberal Arts” is based on a survey conducted by PayScale​.com between April and June of this year. Results are illustrated in the chart below:

As the chart illustrates, technical jobs have a pay advantage.

According to PayScale​.com,

If you’re looking for a degree that will earn you top dollar, get ready to crunch some numbers.

The PayScale​.com site with its 201‑2011 College Salary Report provides a full list of best undergraduate degrees by salary, in case any of the above jobs aren’t appealing. The site also provides info on salary potential by school type, popular jobs by major, popular jobs by school, popular schools by job, and salary potential by school location.

Of course, move in the direction that is a fit for you. Your work must match your strengths and must be in a field that provides meaning to your life. However, most people can take their strengths in a number of directions. Be smart, as you evaluate your options. Know the consequences of your choices so you can make the decision that’s right for you.

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Are job seekers seeking the right jobs?

by Sheila Margolis on October 25, 2010

Watch the 60 Minutes segment “99 Weeks: When Unemployment Benefits Run Out,” and you will feel the pain of those seeking work. College-​​educated people who had great jobs are no longer employed. You would think that after 99 weeks, one would find something. But it’s just not that easy. Going from a job that earned $200,000 to one that is paid less than $10 an hour requires a total shake-​​up in lifestyle.

Being out of work for extended periods, puts the individual at a disadvantage. Skills are not being developed and with the changing economy and technology, many jobs will never come back. In the Wall Street Journal article “New Library Technologies Dispense with Librarians,” it explains how the library as we have known it may be a thing of the past–and with it the librarians that serviced it. Look what’s happening to the newspapers, printing businesses and other businesses impacted by technology. Entire professions are fading from the workplace. If your job can be performed by a computer or outsourced for a cheaper price, maybe it’s time to rethink the job you need to seek. It may not be the job you once had. Maybe it’s time for a career change.

So what are the jobs in demand?

According to the US Department of Labor, Bureau of Labor Statistics (BLS), “Occupational Outlook Handbook, 2010–2011 Edition:

Of the 20 fastest growing occupations in the economy, half are related to healthcare. Healthcare is experiencing rapid growth, due in large part to the aging of the baby-​​boom generation, which will require more medical care. In addition, some healthcare occupations will be in greater demand for other reasons. As healthcare costs continue to rise, work is increasingly being delegated to lower paid workers in order to cut costs. For example, tasks that were previously performed by doctors, nurses, dentists, or other healthcare professionals increasingly are being performed by physician assistants, medical assistants, dental hygienists, and physical therapist aides. In addition, patients increasingly are seeking home care as an alternative to costly stays in hospitals or residential care facilities, causing a significant increase in demand for home health aides. Although not classified as healthcare workers, personal and home care aides are being affected by this demand for home care as well.

According to the BLS report, occupations that are estimated to have the highest percentage of growth are (listed starting with the fastest growth):

  • Biomedical engineers
  • Network systems and data communications analysts
  • Home health aides
  • Personal and home care aides
  • Financial examiners
  • Medical scientists, except epidemiologists
  • Physician assistants
  • Skin care specialists
  • Biochemists and biophysicists
  • Athletic trainers
  • Physical therapist aides
  • Dental hygienists
  • Veterinary technologists and technicians
  • Dental assistants
  • Computer software engineers, applications,
  • Medical assistants
  • Physical therapist assistants
  • Veterinarians
  • Self-​​enrichment education teachers
  • Compliance officers, except agriculture, construction, health and safety, and transportation

As the report further explains:

Two of the fastest growing detailed occupations are in the computer specialist occupational group. Network systems and data communications analysts are projected to be the second-​​fastest-​​growing occupation in the economy. Demand for these workers will increase as organizations continue to upgrade their information technology capacity and incorporate the newest technologies. The growing reliance on wireless networks will result in a need for more network systems and data communications analysts as well. Computer applications software engineers also are expected to grow rapidly from 2008 to 2018. Expanding Internet technologies have spurred demand for these workers, who can develop Internet, intranet, and Web applications.

Developments from biotechnology research will continue to be used to create new medical technologies, treatments, and pharmaceuticals. As a result, demand for medical scientists and for biochemists and biophysicists will increase. However, although employment of biochemists and biophysicists is projected to grow rapidly, this corresponds to only 8,700 new jobs over the projection period. Increased medical research and demand for new medical technologies also will affect biomedical engineers. The aging of the population and a growing focus on health issues will drive demand for better medical devices and equipment designed by these workers. In fact, biomedical engineers are projected to be the fastest growing occupation in the economy. However, because of its small size, the occupation is projected to add only about 11,600 jobs.

Increasing financial regulations will spur employment growth both of financial examiners and of compliance officers, except agriculture, construction, health and safety, and transportation.

Self-​​enrichment teachers and skin care specialists will experience growth as consumers become more concerned with self-​​improvement. Self-​​enrichment teachers are growing rapidly as more individuals seek additional training to make themselves more appealing to prospective employers. Skin care specialists will experience growth as consumers increasingly care about their personal appearance.

So what type of education is required?

Of the 20 fastest growing occupations, 12 are in the associate degree or higher category. Of the remaining 8, 6 are in an on-​​the-​​job training category, 1 is in the work experience in a related occupation category, and 1 is in the postsecondary vocational degree category. Eleven of these occupations earn at least $10,000 more than the National annual median wage, which was $32,390 as of May 2008. In fact, 9 of the occupations earned at least twice the National median in May 2008.

Seeking work and finding it may require a new view of oneself and a new direction. Rather than running into a wall that opens no doors, consider where you might have a better opportunity and what is a fit for you. Education may bring renewed opportunities and a chance to feel fulfilled through work.

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Buffett says–get out of a lousy business

by Sheila Margolis on October 19, 2010

In an interesting interview on CNBC, Becky Quick talked with Warren Buffett about a lesson he learned from a bad mistake he had made in business. He talked about buying Berkshire Hathaway, a cheap stock in a lousy business–the textile industry. His lesson was that if you get in a lousy business, you should get out of it. To be a good manager, you must buy a good business. Buy good at a fair price rather than cheap at a bargain price.

As Buffett explained:

Degree of difficulty counts in the Olympics. It doesn’t count in business. Now, you don’t get any extra points for the fact that something’s very hard to do. So you might as well just step over one-​​foot bars instead of trying to jump over seven-​​foot bars.

But his lesson goes deeper. Buffett bought the stock because he was promised that he could tender his shares for 11.50, yet when the offer was given “in print,” he was offered 11 3/​8. So for being misled 1/​8 of a point, instead of selling his stock in a lousy business, he bought  control of the company and fired  the individual who lied to him.

Maybe there’s another lesson from this mistake. Buffett made a bad business decision because he was angry about being deceived by the company management. Sometimes, anger can lead to bad decisions; it’s best to examine the impact of your actions, if you can, by moving the anger aside.

We try to make decisions based on rational factors, but so often, it’s the emotional factors that govern what we do. It’s okay to use emotion in one’s decision making–often it can be good; just be aware if you are acting out of revenge or anger because as Buffett says,

When a manager with a reputation for brilliance, meets up with a business with a reputation for bad economics, it’s the reputation of the business that remains intact.

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M&A can leave CEOs at a loss–and employees, too!

by Sheila Margolis on October 15, 2010

An article in the Wall Street Journal today states:

Many CEOs stand to come out losers if they sell their companies, even when shareholders would reap a substantial premium.

M&As are a source of growth and an opportunity to enhance competitiveness. But what about the human issues? Are the employees of the companies receiving the attention they need through such a change?

Mergers and acquisitions bring tremendous change to an organization, causing issues of job security and identity to move into central focus for its employees. M&As can shake up emotions and produce feelings of loss and uncertainty that can cripple people emotionally, not only during the change but into the future.

M&A activity can be considered a trigger event because of its potential for erupting organizational change and altering people’s mindsets. Often, as soon as CEOs of acquired companies are able to leave, they do, and with that departure is an added loss for those employees who are loyal to that leader.

The complexities of blending cultures or changing cultures is monumental. Making the decision of what the “new” culture will be is a major concern that is rarely addressed upfront for employees. The result is lots of rumors and resistance that can deter the company from achieving expected synergies.

Mergers demand change and adaptation, yet too often the companies neglect to communicate effectively to guide employees through the process. Communication reduces uncertainty and diminishes resistance. It answers questions like: What’s happening? Who is in charge? What will happen to me? The purpose of the M&A must be communicated clearly, the vision for the new organization must be shared and the schedule for implementing change must be provided. The culture of the merged or acquired company must be understood so employees can evaluate if the new culture is a fit for them. Information must come from all levels, but particularly the top-​​levels must see this as one of their major roles. Any information that reduces ambiguity is essential for employees. Even to communicate that there is nothing new or bits of information can be helpful.

If your organization is anticipating M&A activity, be sure there are plans for defining the new culture and creating a plan for culture change as well as creating a communication plan; these discussions should be at the top of the list with the financial discussions.

The future of organizations depends on the people who live their lives there each day. M&A leadership must be concerned about the CEO and also the employees.

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Initial jobless claims up–your job search strategy matters

by Sheila Margolis on October 14, 2010

Sadly, the number of people filing new claims for unemployment insurance rose to 462,000 in the latest week. This was a higher-​​than-​​expected number. According to the US Department of Labor:

In the week ending Oct. 9, the advance figure for seasonally adjusted initial claims was 462,000, an increase of 13,000 from the previous week’s revised figure of 449,000. The 4-​​week moving average was 459,000, an increase of 2,250 from the previous week’s revised average of 456,750.

People are out of work and it’s just not getting better. Are you one of those people looking for a job? Maybe you need to change your strategy in your job search.

Companies screen applicants on at least two levels. First, they evaluate the candidate’s fit for the job. When evaluating an applicant for job fit, companies consider these questions: Does this person have the knowledge and skills necessary for this job? What past experiences have prepared the applicant for the job? Do the strengths of the applicant match the requirements for the job? Will this person be sufficiently challenged doing this work?

But more and more organizations are adding a second layer of questioning: the candidate’s fit with the culture of the organization. When evaluating an applicant for culture fit, companies think about these questions: Is the culture of our company a fit for this applicant? Is the work of our organization something that is meaningful to the applicant? Are the applicant’s values in harmony with the values of the organization?

How well a job candidate fits the culture of a workplace can make the difference between job search success and failure. Those candidates selected on the basis of culture fit—in addition to job fit—will contribute faster, perform better and stay longer with the organization. Where culture fit is neglected, the burden is shared by both the employee and the company. Working at a company with values inconsistent with yours can be difficult, stressful and unrewarding.

Your values are difficult to change. As you experience situations that conflict with your values, you discover how important values are. Working in a company with a different set of values from your own can be frustrating and exhausting. When you are not a fit with the culture of an organization, that fit cannot easily be altered through training and development. It’s just not the right place for you and not the right life for you to live.

Organizations are screening job candidates for culture fit. Don’t you think you should be evaluating that fit as well? Use culture to help you decide where you will achieve the greatest sense of fulfillment in your work. Understanding the culture of a workplace can guide you in finding where you will flourish and be happy going to work each day. And, when you find the company that is a fit, you will have the knowledge to sell yourself on multiple levels. You can share not only how your experience and strengths position you for the job, but also how you are a fit with the culture of the company. With this added knowledge, you can standout and be the candidate that gets the job.

Don’t let these jobless claims numbers scare you. Just be more prepared when you do your next interview. Show the company how you are a fit with the job and the culture.

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DC Chancellor Rhee resigns citing communication as a weakness in bringing change

by Sheila Margolis on October 13, 2010

D.C. Public Schools Chancellor Michelle Rhee resigned today. Rhee, a champion of school reform, tried to make a difference in the school system by introducing major change. In an NPR interview today, Rhee stated that she sought change but did not communicate effectively with all groups in the process of change.

Yes, communication is key to any change effort. Communication reduces uncertainty and promotes participation in decision-​​making: two key elements for making change really work without tearing things apart. All groups–including the teachers and the community–needed to feel like they were a part of making change happen–rather than having change done to them. Sometimes in one’s efforts to move mountains, one can forget that the mountains have to know they’re going to move and want to actually make the move. Communication–two-way–can help in the process. People want to be a part of change that is affecting them, and they want to be informed and able to contribute their views along the way.

Rhee is a dynamic leader who has learned lessons that she will take with her in her next mission. She has the right stuff; she just has to do it the right way so others are in there with her to make it happen.

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Teamwork and the Chilean mine rescue

by Sheila Margolis on October 13, 2010

If you’ve ever doubted the importance of teamwork and collaboration, just look to the rescue of the miners in Chile. Read “A Life-​​Saving Synchronized Event” which details the roles of each member of the greeting team. It is a calm and methodical process taking place to meet each miner. As the writer Tsu Dho Nimh explains:

I have seen rescues, trained for rescue work, and participated in rescues; this team is world-​​class. It’s the biggest news story of the day, maybe the year, and they are as calm and methodical as if they were directing traffic on a village side street.

While trapped in the mine, the miners were a cohesive team. They created a structured system where each took on roles for the group.

Chile was supported with the help of the international community to save the miners. Some examples:

  • Yamazaki Nabisco Co. supplied candy designed for astronauts at the request of the Japan Aerospace Exploration Agency, or JAXA.
  • Gunze Ltd. offered two sets of T-​​shirts and boxer briefs made from odor-​​eating fibers to each of the miners.
  • Goldwin Inc. provided odor-​​fighting underwear, shipping products that it co-​​developed with JAXA.
  • Oakley donated the sunglasses that provide them with protection from ultraviolet light.
  • South African construction giant Murray & Roberts supplied a drill and six South African engineers are part of the international team of engineers, geologists, and mining experts who worked around the clock to secure the release of the trapped miners. Murray & Roberts Holdings Ltd., South Africa’s second– largest construction company by market value, and its Chilean affiliates provided a large-​​diameter drilling machine called the Strata 950 for use in the rescue. The 40-​​ton machine, which was already in Chile, was one of at least three devices used to bore into the earth as rescuers tried to reach the miners.
  • Aries Central California Video in East Central Fresno designed a camera that was lowered nearly a mile into the ground sending back shots of the miners. The cameras are designed to inspect water wells and boreholes and reach a depth of more than 5-​​thousand feet.
  • One of Canada’s largest oil drillers Precision Drilling Corp. was asked to move its only drilling rig in the South American nation more than 1,000 kilometres to the mine site. Their role was to build a backup rescue shaft.
  • Winning the three-​​way race to reach the 33 miners trapped in Chile, drillers from Kansas City-​​based Layne Christensen Co. broke through. Working as a team, Layne and Geotec drilled a 5-​​inch hole nearly 2,300 feet, reamed it to 12 inches and finally to 26 inches in diameter — large enough to accommodate the “Phoenix” rescue capsule. Americans Jeff Hart, field supervisor with Layne Christensen Co., and James Stefanic, operations manager with Geotec Boyles Bros., could be called heroes. They were called in to Chile as part of a special team to oversee and drill the rescue shaft. Geotec and its equipment manufacturers — Center Rock Inc. made the drill bit and Schramm Inc. made the truck-​​mounted drill.
  • UPS, the US shipping company, brought a 13-​​ton drilling tool from Pennsylvania in less than 48 hours. United Parcel Service Inc. sent seven shipments with more than 50,000 pounds (22,680 kilograms) of mining equipment “that required creative logistics with multiple flights and trucks.”
  • Zephyr Technologies, the Annapolis, Maryland-​​based maker of the remote monitors of vital signs that miners will wear during their ascent, has workers on the scene.
  • NASA offered expert advice on medical, nutritional and behavioral health issues. The NASA team also provided suggestions regarding the rescue cages that were specially-​​designed to pull the trapped miners out of the shaft that was dug over 2,000 feet into the Earth. A team of NASA doctors and engineers recommended that Chilean authorities regulate the day-​​and-​​night sleep patterns of the miners, boost their Vitamin D intake and phase in an exercise program as their nutrition improves. The NASA team has been in Chile to help rescuers develop plans for maintaining the health of miners. The NASA team, said regulating sleep patterns requires establishing a “lighted community area” that is always lit and a “dark sleeping area” that is always shuttered. Regulating the time the miners eat and exercise would help them get in a pattern, NASA experts said. The miners’ vital signs were closely monitored throughout the ride, given a high-​​calorie liquid diet donated by NASA, designed to prevent nausea from any rotation of the capsule as it travels through curves in the 28-​​inch-​​diameter escape hole.
  • The miners got support from a group of former rugby players who survived more than two months of isolation in the Andes four decades ago. Ramon Sabella, Pedro Alcorta, Jose Inciarte and Gustavo Servino were among 16 Uruguayans who survived a plane crash in the snow-​​covered peaks and waited 72 days to be rescued. Some were forced to eat the flesh of friends killed in the crash to stay alive.
  • Jeff Hart was drilling water wells for the U.S. Army’s forward operating bases in Afghanistan when he got the call to fly to Chile. He spent the next 33 days on his feet, operating the drill that finally provided a way out for the 33 trapped miners.
  • An Australian drilling consultant Kelvin Brown, of Perth, flew to Chile to help direct precision drilling to a refuge chamber.

I’m sure many more people, companies and organizations from around the world have helped in this rescue mission. And without the collaboration and support from these and others, today may not have happened. So when you have a mission of your own, why not collaborate with others to reach a solution. It just might help.

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Culture is important to United Continental CEO Smisek

by Sheila Margolis on October 11, 2010

According to an interview posted in the Wall Street Journal, titled “Lots of Email, One Message,” United Continental CEO Jeff Smisek listed organizational culture as one of his three biggest challenges.

United Continental CEO Smisek sees culture as a top challenge

Smisek is the former Continental CEO who is now CEO of the merged airline United Continental. With the recent merger with Continental and United, he is faced with many challenges, but he understands that building a unified, service-​​focused culture is a priority. As Smisek explains:

Culture is incredibly important in a service business. I can lecture about service and we can train about service, but the employee is not going to give good service unless the employee wants to. They want to give good service if they enjoy coming to work, trust their co-​​workers [and] are given the tools they need to do their jobs.

Smisek has it right that culture is important to business. And when a merger has taken place, culture should be one of the first areas examined because if the cultures of the two organizations are not in sync with each other, the work after the merger can be a constant uphill battle.

Combining two distinct cultures will be a challenge. To build a thriving culture at United Continental, they will first need to identify the values that are central to the merged culture. And applicants as well as current employees must be screened to ensure that living those values will be a natural for them. If the central and distinctive values of the organization are not in harmony with an employee’s values, it will be too much work to try to make it work. Screening for fit upfront is essential. To hire people who find meaning in the work of the organization and who share its values is the first step in building a strong culture where employees are engaged.

Then as Smisek suggested, employees must feel a sense of trust and have the tools to do their work. But they need even more to truly be engaged. They must work in a caring workplace, with open, two-​​way communication and transparency. They must see their job as challenging and receive feedback and development. And they must be involved and feel like they are owners of the business. Those values will help build a culture of distinction and a culture of engagement.

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