How Not To Run A Company

My previous employer had a bit of a falling-out this week. Staff members were apparently upset with the way top execs were running the show, finally coming to a breaking point with many senior members walking out, including top management, lead architects and head designers. I believe there were key principles that were neglected, and hopefully by sharing these mistakes, they can be avoided by others in positions of authority.

1. Keep Your Key Players Happy - like a great sports team, there are key players of your company. These people are your innovators keeping you leading edge, the goal scorers. These are your motivators who lead others by example, the assist makers. It is critical that these key players are rewarded and stay happy. If you take away your starting lineup, you no longer have a team. Remember; don't ever gamble with something you are not willing to lose.
   
2. Avoid Keeping Secrets - for various reasons, there were many secrets throughout the company. Top execs kept secrets from upper management, and management kept secrets from staff. But this attitude spread throughout the entire company and the result was an unhealthy environment which brewed lack of trust. For example there was a hush-hush attitude towards salaries, and when you got a raise, you were told not to tell others but the result was suspicion and jealousy. If you don't want others to spread rumors or keep secrets from you, then don't keep secrets yourself. Like a good parent, you should teach through example, you can't tell your kids not to smoke with a cigarette in your other hand.
3. Reward Individual Accomplishment - if you want people to give 110%, they must be rewarded for their individual efforts. People work for two reasons, money and acknowledgment. If you realize this and reward employees in both ways, they will happily go above and beyond what is required, but neglect these two simple facts and you will have very unhappy employees. For my first project I was part of a small team, it took a lot of extra work to get deployed. When it was finally released, rather than giving a small bonus to each of us, the company threw a fancy lunch for all staff. And during the lunch, an announcement was made 'we'd like thank everyone involved in this project' we thought, 'wait, that's us, how come they didn't even say our names?' This is a perfect example of failure on both parts where we were not rewarded or acknowledged for our hard work.
4. Clear Sense Of Direction - there was a lot of talk about keeping your eye on the goal and chasing the big prize, but this message was vague, and most staff didn't know what the big prize even was, or whose goal they were chasing. It is important to have clear company-wide direction, which all employees share.
5. Pay For Overtime - if you are expecting or demanding that employees work overtime, then they should be paid for overtime. Unrealistic goals and deadlines were placed upon staff members who required they work on weekends and late into the evenings. And yet this forced-volunteer work went unrewarded time and time again. Management's reasoning was that your hard work would not go unnoticed and when raises were handed out, you'll be first in line. Well, you can only dangle a carrot for so long before the rabbit realizes they'll never get it, and simply stops running. Turn the tables for one second, how would management feel about paying you for hours you didn't work? A healthy relationship needs to be mutual.
6. Ideas Reward System - in an industry where your ideas make or break your company, it is critical that a reward system be in place to promote innovation. I could propose an idea which could potentially revolutionize the industry, but unless I know I'll be acknowledged for my idea, why would I even mention it? As mentioned in #3, unless you know you'll be rewarded for your extra effort, might as well keep the idea to yourself in hopes to someday launch your own startup. Second, when ideas are proposed, it is crucial they are fully heard. Ideas are like a little spark, unless they are nurtured when they are forming, they will never ignite into a flame.
7. Regular Scheduled Raises - although many companies don't offer scheduled raises, I believe it should become a standard policy. In fact, if you are not receiving a regularly scheduled raise, you are actually taking a pay cut due to inflation. Housing and living expenses rise, and your salary must also rise with that.

The goal of this posting was to help promote a positive change towards more open and rewarding environment. I also intended for the principles to be generic enough they could benefit any company. When I noticed a war was erupting in the comments and that other bloggers were following the conversation, I feared the result would have the opposite effect for those involved. This is why I decided it was best to hide the comments.

Having worked for the company for several years, I know for a fact that they are filled with incredibly sharp and talented people. I also know those who left were very dedicated to the company and I believe they had very good reasons for leaving. I wish all those involved the very best and hope the outcome results in a change for the better.

When one door of happiness closes, another opens; but often we look so long at the closed door that we do not see the one which has been opened for us. - Helen Keller