People Business

April 24, 2012

Last month, Fortune magazine ranked the top 12 business innovators of our time – “founders who turned concepts into companies and changed the face of business.”  It was an unsurprising list dominated by the visionary leaders of what are now well-known enterprises.  What I found most interesting was a theme.

Microsoft’s Bill Gates, No. 2 on the list (behind Apple’s Steve Jobs), said his best business decisions came down to picking good people and relying on them.

No. 4 Jeff Bezos, founder of Amazon, credited “a bunch of smart people” that continually take his ideas and improve them.

No. 9 Herb Kelleher of Southwest Airlines has created “a culture that respected the people he carefully hired.”  He said, “front line personnel can either make you or break you. . . Start with employees and the rest follows from that.”

No. 10 Narayana Murthy of the Indian company Infosys said an emerging organization “must coalesce around a team of people with an enduring value system.”

Time and again, the secret sauce is the people.  Not policy or procedures or products.  People.

Limitations of Rules

November 15, 2013

Those who make rules ought to have knowledge of the limitations of rules, lest they overreach and over-regulate.

Dov Seidman writes in how:  Why HOW We Do Anything Means Everything:  “Rules fail because you cannot write a rule to contain every possible behavior in the vast spectrum of human conduct. There will always be gray areas, and therefore, given the right circumstances, opportunities, or outside pressures, some people might be motivated to circumvent them. When they do, our typical response is just to make more rules. Rules, then, become part of the problem.”

The NCAA is under constant criticism for its voluminous rule book which seems to pry into myriad of daily activities of athletes, coaches, boosters and others with so many rules it’s impossible for people to know them all. So university athletic departments must hire compliance officers to guide people – effectively absolving the people in the trenches from knowing the rules and committing to their adherence; and the NCAA office must hire investigations to sort through all the allegations of wrongdoing.

While much trimmer than the NCAA Manual, the MHSAA Handbook is much larger today than its original versions. Still, every year in December when the MHSAA staff conducts a series of meetings that kicks off a six-month process of reviewing theHandbook, there is a concerted effort to “make the rules better without making the rule book larger.”

We know that unless the rules address a specific problem and are written with clarity and enforced with certainty, rules do more harm than they do good. “This,” according to Seidman, “creates a downward spiral of rulemaking which causes lasting detriment to the trust we need to sustain society. With each successive failure of rules, our faith in the very ability of rules to govern human conduct decreases. Rules, the principal arm of the way we govern ourselves, lose their power, destroying our trust in both those who make them and the institutions they govern.”