Early Momentum

Have you ever given thought to why you get paid for your work? I’m not talking about the specific tasks you do, but rather the purpose of your work in a general sense. At a high level, there are three reasons for any job being created or any service being paid for.

#1 We get paid to solve problems

The purpose of many jobs is to solve problems. We may talk in terms of filling a need, but a need is really a problem. In order to sell product a grocery store faces the problem of needing the shelves stocked. The clerk who stocks the shelves solves the problem and gets paid. It’s important to understand that if you wish to get paid more money then you should learn to solve bigger problems. Stocking the grocery shelves is a minor problem easily solved therefore it earns a modest pay. Contrast that with the problems that a brain surgeon must solve. Obviously if you’re having to see a brain surgeon you have a really big problem. The brain surgeon gets paid really big money to solve it for you.

When I first learned that solving problems equals earning money, suddenly I had a new outlook towards them. I learned to equate solving problems with bringing value. Problems are inevitable. People want to do business with those who are capable of solving them.

Leaders are problem solvers by talent and temperament, and by choice.-Harlan Cleveland

#2 We get paid to avoid problems

A dentist gives his patients routine cleanings to avoid the problem of cavities. A professional accountant is paid to help her client avoid tax problems or bankruptcy. When a house owner pays a company to install an alarm service it is to avoid the problem of being burglarized. For many people, much of their work is proactive activities designed to avoid problems. The bigger the problems avoided the bigger the pay.

The act of avoiding problems is perhaps the most thankless element of work. Yet imagine an amusement park without maintenance men or a new housing development without building inspectors. With most business it is only in the absence of major problems that we can spend our time focusing on opportunity.

#3 We get paid to create growth

Financial advisors make their money by growing their client’s investments. A major part of the business manager’s work is to grow profits. In many industries it is the salespeople who are the highest paid people in the company. The commissioned salesperson’s compensation increases relative to the growth they create through selling her company’s product. Take a look at most companies’ bonus plans and you’ll find they reward the growth of sales and/or profits.

Personally, I feel of the three reasons we get paid for our work, creating growth is the most rewarding. It’s like a payoff for your labor. Create much growth on your job or in your business and you will create much growth for youself in the process.

Don’t wait for extraordinary opportunities. Seize common occasions and make them great. Weak men wait for opportunities; strong men make them.-Orison Swett Marden

If you reflect on your work, you will find that your responsibilities fall under one or more of these categories. Understanding this and considering how you approach your work can go a long way in increasing your reward.

Until the recent  turmoil that Toyota is facing , they were truly an example of how to do quality right. Unfortunately for them they’ve gone from being written about as one of the world’s greatest companies to being the target of satire. 

Now don’t get me wrong, I am a fan of Toyota. In fact I have driven four separate Toyota vehicles over the years and have been very pleased. Fortunately my current Toyota vehicles aren’t on the recall list. At least not yet. However they have  become a cautionary tale.  No matter how great a company’s reputation, crisis could hit at any moment. 

We, like companies, have reputations as well. Hopefully we have done what is necessary to earn and maintain a great one. But it’s worth noting that no matter how successful we become, we must not let it go to our head. Like great companies, great people mess up too.   

Typically when we make a major mistake, in the heat of the moment we make bad judgement calls in how we handle it. This is the popular belief about Toyota in their current crises. They have been called to task for not doing the right thing soon enough. 

Toyota’s actions throughout this mess — the initial denials, the obfuscating, the gradual acknowledgment of safety issues — suggest that its priority first and foremost has been to cover its crankcase, not safeguard its customers. 

Los Angeles Times 

Contrast that with how the household brand of Tylenol dealt with their own life threatening crisis: 

The gold standard for corporate crisis management remains Johnson & Johnson’s (immediate) response to the Tylenol scare in 1982. Seven people were killed after somebody placed cyanide-laced capsules in packages on store shelves. 

Although the deaths were limited to the Chicago area, J&J recalled all Tylenol nationwide – 31 million bottles – at a cost of about $100 million. The company also launched a public-awareness campaign to protect consumers. 

Los Angeles Times                    

Man, I messed up!

If you wish to respond effectively in the face of mistakes or crisis, it’s important to decide in advance how you will do so. Consider the following. 

Admit you messed up 

The best of people make mistakes. It is actually a sign of confidence and integrity when you admit you messed up. This is especially true and necessary if you are in a leadership role.  

Admit it quickly 

There is nothing worse than a mistake you made being revealed by someone other than yourself. So admit it as soon as you realize it. You don’t look so good when you fess up after a boss hears about it from your co-worker or customer. 

Don’t sweat it 

Some people are afraid to admit a mistake because they fear the repercussions. But I can tell you that painful repercussions are usually only felt by those who did not admit the mistake before being found out. I have seen many examples over the years of amazing forgiveness for MAJOR mess ups when the person acknowledged their error. 

Make it up 

If it is within your power, do what you can to rectify the situation. Pay the cost in money or time. You will not only ease the blow to those affected, but you will possibly grow your credibility and favor with them. 

Now what about when you’re in the role of leader/boss/parent and dealing with a person bringing their mistake to your attention? 

Recognize you mess up too 

Because you do! 

Consider the effects of your response 

If you fly off the handle, if you come down with “steel fists,” what message will you send to those other people you lead? Will they ever be willing to admit their mistakes? Probably not. What will that do for your results? On the other hand, if you show patience and forgiveness, you will earn the respect of your team and encourage an environment of honesty. Great leaders know that you cannot grow people if you instill a fear of making mistakes in them. 

The world is watching Toyota closely as they handle their extreme crisis at hand. While up to now they have been a case study in excellence, today they are proving to be a case study in handling mistakes. Don’t miss the lesson.