Do’s and Don’ts for new CEOs and managers

Links to articles about new managers can be found at the end of the article.

Learn, don’t teach

When you are a new a manager, all eyes are on you. Whether you start in a new company or are promoted in your own company, it is important to learn, not to teach.

Learning about the new role is not only important but crucial. It is therefore recommended to start the new position by learning about the product, the processes, the manufacturing systems, customers, purchasing processes, new developments, and the site in general. However, most importantly, you must know the people who work there. Know your team members.

To know your team members, I recommend starting with personal conversations with employees. Start with your peers and colleagues and make your way through each department down to the last employee in the organizational hierarchy. Make sure to speak to those who do the actual work (sales reps, customer service, production employees etc.)

Visit your site, meet the workers, accompany the sales reps, and get to know the customers. Meet the suppliers, the customer service personnel. Know the research and development teams.

Check the inventory management and the situation regarding supply chain which reflect the company's progress. Remember that companies that present low inventory adequacy over long periods reflect mismanagement or theft within the business.

In the conversations with staff members include the following:

Introduce yourself. Then ask for the person’s name, job title and how many years they have been working in the firm. Without intruding on their privacy, ask about their home, family and hobbies. Be short and sensitive.
Ask the employees what, in their opinion, are the good things about the company. This is a very important opening question because it sets a positive trend to the conversation and provides you with much information. The most interesting employees are the ones that express different opinions from the majority. Try to understand why.
The third question should be “do you have personal goals and objectives on which you are periodically assessed?
Ask for a description of the organizational hierarchy. You will be surprised to see the number of different descriptions you will receive. In many firms the official organizational chart is not known to the employees, and they perceive the organizational hierarchy in different ways.
Ask the person to tell you about: the site in general, the production process, the various products, etc. Listen with empathy. Do not contradict or argue with employees. Just listen. Do not promise or even sound as if you promise to do something towards promotion, pay increase or improvements.
The last question would be: “If you were a magician, or Harry Potter, what would you do to improve the business?” The answers will most always be realistic.

First comment:

Always remember that you are a listener and a learner. You will be greatly appreciated for it.

Bear in mind that people dislike those who think they know everything and have nothing to learn. If you present yourself in that way, people will be happy to see you fail.

Second comment:

You still have much to learn even if you were promoted from within the business. First, you need to familiarize yourself with the workers and the managerial team members. Second, as managers you are expected to consider the wider picture and therefore you will be exposed to new information you were not exposed to before.

Third comment:

Showing respect and appreciation is not common in Israel. However, it is the best, quickest, and almost always free of charge way to empower employees, to direct them towards the company's goals and commit them to the company’s success.

Basically, all you need to do is to say “thank you”. Acknowledge every employee’s special contribution, volunteering work, ideas for improvements. Publicize your acknowledgement and thanks, verbally and in writing. You will earn much respect from the employees when appreciating their efforts.

Targets and assessments instead of centralization.

It is essential for every manager and CEO to set targets and monitor progress of achievements. Think of the targets on which you are assessed and set personal objectives to the managers who report to you.

Targets and objectives focus all activities towards aligning expectations from team members and achieving company’s goals. Working with Key Performance Indicators (KPIs) and conducting daily, weekly, and monthly (according to the required frequency) follow up meetings enable managers to cascade responsibilities without losing control of the business.

However, it is not enough to set and monitor the KPIs. As manager, you must also demand to see action plans and detailed explanations of how the objectives are going to be achieved.

Working with KPIs empowers employees and increases their engagement.

Centralization decreases staff motivation and diminishes their commitment to the company’s success. Focusing authority, responsibility and decision making on one manager not only overloads the manager with extra work but decreases employee’s engagement.

Expect resistance

Not all employees will praise you. There will be members who will express objections and defiance, especially those who applied for the position you were selected to perform. Some grudging employees may expect, or even act towards your failure. There will be others who will try to check the new boundaries and defy your authority.

When you come across objections, face them with a positive attitude. Work with KPIs. It will enable you to be present in everyone's role.

Be patient. Speak softly. Don’t be bossy and don’t raise your voice. But be assertive. Strive to achieve team members’ understanding and agreement of their KPIs and demand to see action plans towards successful achievements. Individuals who fail to become cooperative must be sent home. Don’t hurry to fire employees but don’t hesitate for too long either. Use the dismissal tool when you have no other choice.

Management

Management meetings are a necessary forum to share information and plan the future. It is through the main forum for a new CEO to establish his status.

New managers must establish management forums which include managers from their field of responsibility: (Production line, sales department manager etc.).The forum must include team members who report directly to them. At management meetings listen to your team members. Listening will empower your team members and increase their cooperation with you. Start each day with a five-minute meeting and every week with a 15-minute meeting in which you summarize the week before and a plan for the week ahead.

Objection and hostility of colleagues

Hostility from managers that do not report to you is an extremely negative event. The reasons for hostility from colleagues can vary from simple personal dislike to a strategy in which causing your failure might elevate them. Act wisely and forget your ego. Consider the company’s good and strive for cooperation. Avoid conflicts. Conflicts can harm you.

Write down a list of the issues in which you have no common responsibilities with your hostile colleague. Make another list of the areas in which you might be required to work together. Plan how to excel in the issues where you have no common responsibilities. Your value to the company will increase. Your success will speak for you. As for the second list, measure your steps and be positive. Avoid conflicts. Try to cooperate as much as you can. Don’t insist on unimportant issues and try to resolve problems by discussions and a positive attitude.

Action plan and strategy

Even when you think you know the business well, keep learning. Always think how to achieve your KPIs via establishing and following action plans.

Establish, in cooperation with the management board or your team members, a strategy to reach the overall company’s goals.

Summary and recommendations

When you enter a new managerial position, you are being tested. Not only by those who nominated you but also by the staff members who will report to you.

My recommendations are:

Be a learner not an expert. Thoroughly learn every department and aspect of the business. Get to know your staff members. Conduct personal conversations (see above recommended structure of a conversation), visit the production floor, accompany the salesmen when visiting customers. Meet the company’s suppliers, customer service and research and development team members.
Respect and appreciate. Express your appreciation verbally and in writing, thank your team members. Hand out short ‘Thank You’ notes and make the employee’s special contributions known to others.
Targets and KPIs. Agree with your team members on their targets and KPIs. Monitor progress of achievement and update the action plans accordingly. Assess and discuss the KPIs at management meetings. Share the results with all the employees. Praise managers who meet their targets but do not reprimand the ones who do not. Ask them to improve their action plans and keep following their progress. Remember that targets which are always reached are not challenging enough.
Management meetings are an important forum in which you establish your status.
Objections will always occur. Address them positively by following the KPIs. When the objection causes lack of cooperation, consider separation either by relocating the employee to another department or by dismissal from employment.
Hostility from parallel colleagues. Avoid conflicts. Think of the company’s good. Conflicts can harm the company’s and your own good.
Action plans and strategy. Don’t stop learning even when you think you know the company and the staff members well. Establish action plans to achieve your own KPIs and a strategy to achieve the company goals. Always establish the strategy in cooperation with your team members.