Henry Ford ruled his innovative assembly line company like a dictator, he had a hand in most every decision, and when backers didn’t agree with him, he simply bought them out. Later, a CEO would simply hire a COO to help run the organization. To paraphrase an old saying, organizations and their top management teams (TMT) have come a long way baby.
Business environments, CEOs, and their TMTs face an abundance of challenges that Henry Ford would probably only dream of in his worst business scenario nightmare.
- Global competitions
- Changing technology
- Organizational complexity
- Diverse yet interdependent business units
- Mobile staff in widespread locations
Of course, there are the internal stresses, disrupters, and explosive elements that can cause a TMT, or any team for that matter, to become dysfunctional. Internal elements consist of
EQ, known as Emotional Intelligence can play a big role in your success at work and your time away from work. CEOs need EQ more than ever. Today, it’s routine for CEOs to manage rapidly changing technology, outside economic forces, restrictive regulations, a more mobile staff, diverse workforces, locations, and skill sets. Of course, CEOs are not the only people with busy lives, it’s the norm for everyone.
We all experience stress from the demands on our time. The demands from our boss on projects we need to complete yesterday! The demands from our families not only add stress, but sometimes guilt. I should call Aunt Martha, I could have visited cousin Fred while he was in the hospital, and poor second cousin twice removed, Mary living all alone. Of course, Mary probably likes it that way, but you still store the guilt, just in case. During the holidays, demands are compounded due to increasing our social activities, trying to meet year-end deadlines, getting projects ready for launch for the new year, and people who expect to be included in our scope of attention. If ever we need to call on our EQ, it’s during the holidays.
The new FLSA Overtime Rule is causing quite a stir. This blog’s intent is not to lobby for or against any such rule, but more to help prepare you for its impact. If you wish a more in depth understanding of this ruling, here are three links that can help:
- The Final Rule from the Wage and Hour Division
- A report on the rule’s economic impact
- SHRM’s Stand on the new rule
Obviously, this new ruling will be a disrupter (to use the newest biz buzzword) to businesses of most every size and shape. If change or elimination of this law is a target for you and your business, it will take time. While raising the overtime threshold may be a good idea, doubling it is not and many businesses will face several burdensome backlashes because of it. In the meantime, business owners and CEOs must (stop me if you’ve heard this before) adapt to change and here are some you will be facing.
We all know that one of the main reasons organizations need to address turnover is that it is expensive. In fact, one source suggests that costs can range, on average, from $10,000 to $200,000 USD. When looking at total costs, many factors play into these estimates. Certainly, the level of the position matters. While a valuable employee, a janitor is a lot less expensive to replace that a CEO. Even at an average expenditure of $4,000 USD for a lower level employee, it is obvious that turnover can chew up your bottom line and spit it out.
Direct costs we associate with turnover are job postings, recruiting, drug testing, and background checks. Other costs that may not be as obvious are lost productivity, lost expertise, low morale, and poor customer service. These too are costly to both the bottom line, your brand, and may even lead to even higher turnover.