3 lessons for leaders from the toxic culture of The Tonight Show

Jimmy Fallon finally gets it: culture matters.

On September 7, 2023, Rolling Stone issued this report about The Tonight Show, headed by Fallon:

Chaos, Comedy, and ‘Crying Rooms’: Inside Jimmy Fallon’s ‘Tonight Show’

The report referred to experiences like...
💥 Show staff joked about killing themselves because of how they are treated
💥 They cry in the guest dressing rooms so often, they refer to the rooms as "crying rooms"
💥 High turnover of showrunners (the production executive) because of Fallon's erratic behavior

On the show, in other media, and on SNL, Fallon is an affable guy. He has a positive public reputation and was surprised by the results of the report.

The day the report was published, Fallon and Chris Miller, current showrunner, had a call with all employees. Fallon apologized to staff for the show's unhealthy environment.

Fallon and Miller indicate they want an inclusive, fun environment. It sounds like they get it and will seek to improve.

Here's what stood out to me in the Rolling Stone article:

Rolling Stone contacted more than 80 The Tonight Show employees, past and present, for the study of The Tonight Show. Not one spoke on the record or said anything positive about working on The Tonight Show.

Not a single one.
Out of 80.

None of the nine showrunners since 2014 would comment on the record either. Not one of them said anything positive about Fallon.

So what does this have to do with business leaders?

Business leaders and owners, here are a few things to learn from this:

◼️ Fix problems early. Fallon’s and the show's have been going on for 14 years. It would have been more efficient to fix these issues before it took a humiliating report full of dirty laundry.

◼️ Set high standards for all and live them. It is confusing when the boss gets away with treating people differently than you would allow others. Or, when the best biz dev person gets to treat people poorly because they bring in revenue. The mental gymnastics required of staff to accommodate for the incongruent standards leads to distrust, bur out, and turnover.

◼️ Assess your culture now. Here is a quick way to learn what your employees think: a word cloud. Invite your employees to share the seven words they would use to describe your company. The words will give a glimpse into what is happening and whether it aligns with what you think and want.

Stay on top of your company's culture before high turnover, poor behavior, or rumors prompt an external investigation. How would it serve your company to be in Rolling Stone like Fallon's show?

Don't assume everything is fine unless you hear about it.

Culture matters, and it will damage your company and reputation if you take it for granted. The good news, however, is that it also contributes to company success.

If you need help, let us know. We can help you nourish your culture so it builds your revenue, retention, and reputation.

The #1 reason the RTO mandates fail and what to do about it

When asked nicely a year ago to return to work in person (RTO), many employees complied. Companies promised employees coming back to the office benefits of spontaneous conversations, teambuilding, collaboration, and mentoring,

Although skeptical that all of those things require being in person, people packed up their laptops at home, dressed in hard pants and shoes, made the commute, unpacked in their corporate offices, and got to work. Every once in a while, they ran into someone, but for the most part, people drove all the way to the office just to work the same way they did from their home offices.

They were alone in an office attending virtual meetings.

Promises made about how great it will be when everyone returns to the office were not reality. Yes, there were fun and games and free pizza lunches; however, those things do not make a culture.

⚫ Their bosses were not there to stop by or mentor. Top leaders weren’t making the same effort to be in the office, so why should everyone else, people wondered.

⚫  There were few in-person development opportunities because most were one-offs or online. Bosses were not inviting them to in-person meetings to learn or contribute something special.

 ⚫ There were very few useful team meetings or brainstorms for valuable purposes. Those are planned so people can prepare, research, bring ideas, and think about next steps.

After a few weeks, people resisted coming in to the office.

Why make the effort to haul the laptop in, suffer the commute, and wear hard pants all day, for an hour of phony teambuilding games and free pizza? Then to work the same way they would at home?

Employees want to come into the office when there is something scheduled and work from home the other times.

That spurred some companies to track employees’ work time, monitor computer usage, require login times, and threaten termination.

Some leaders took up the RTO battle so forcefully, it became the priority blinding them to other issues.

Recently, Salesforce, the $31.4 billion CRM company with 79k employees (Source: Forbes), tried a different tactic: emotional manipulation. For ten days starting this past Monday, the company would donate $10 for every day any employee came to the office.

Those mandates and manipulations are missing the boat.

Employees would want what was promised about RTO: mentoring, learning opportunities, engagement with leaders and each other (for the most part), team building, and brainstorms with purpose.

They do not want to be treated like children. The oversite that comes with being in person is stifling and insulting, yet many managers reverted back to old-fashioned micromanagement as soon as the pandemic ended.

People have changed. Management needs to change too.

No thirty-year old wants to ask permission to go to the dentist or justify leaving early to coach their kid’s soccer game.

Picture the conversation:

• Employee: “Can I leave an hour early next Monday to go to my kid’s soccer game across town?”

• Manager: “Sure. Are you going to skip lunch or come in an hour early that day to make up the time?”

• Employee: “Well, I worked late every day last week on the Travis project.”

• Manager: “Yeah, but how will you make up the time next week?”

Employees recognize that level of micromanagement as distrust.

It disconnects them from the manager, team, and company. A few of those incidents among the team prompt resume updates. It leads to disengagement and departures.

Don’t get it wrong.

People do not mind advising coworkers and managers that they will arrive late or leave early. Professionals from shift workers to customer service reps to HR generalists and accountants understand the need to get the work done and to be there for the team.

It’s the asking for permission part that feels intrusive and childish to grown adults.

When you want people to RTO, update your management style and make it worth it.

Here are three actions you can take to make RTO worthwhile for your people:

1.  Be there too. Be in the office, get your coffee in the break room, grab a group to go out for lunch, and talk to people when you see them around.

2.  Get to know the people you see. Walk around, ask about their day and work. Engage in small talk to show you care, build your network, and identify ways to help people.

3.  Connect people to opportunities. As you engage in small talk and get to know people, you will be able to identify work, learning, and networking opportunities that will be valuable to them. Seek opportunities to connect people so they can contribute, grow, and help others.

The more you are present, engage, and connect others, the better you can inspire people to want to be in the office. You can help create the sense of belonging and purpose people desperately seek right now. (Source: Mayo Clinic)

Inspiring will yield better results for the company than threats of termination will. It will improve your influence as a leader too.

 
______________________________________
Sources:
Forbes.com Profile: Salesforce.com
https://www.forbes.com/companies/salesforce/?sh=6483e83e7a2b

 Is having a sense of belonging important?
Mayo Clinic Health System
December 2021
https://www.mayoclinichealthsystem.org/hometown-health/speaking-of-health/is-having-a-sense-of-belonging-important

Who shapes culture: top-down or bottom up?

Who shapes culture: top-down or bottom up? That was the topic of discussion for February’s Culture Matters conversation held February 17, 2023.

Of course, we all agreed the answer is, "Both!" But, it goes deeper than that.

The "top" is responsible for…

• Setting policy

• Discerning and sharing the vision

• Behaving as role models for the culture it wants to create

• Holding itself and others accountable

The "bottom" needs to live the culture and hold each other accountable.

It's not really about the level so much as about the people.

It's more about the power structure than the job structure. Leaders at the top are often too out of touch or weak to model or enforce the culture. Yet, influencers in the middle and lower levels can be the real company leaders who make or break any big changes.

A few folks shared examples of when a coworker went out on leave, and the whole culture changed for the better in their absence. Several issues were exposed when that happened:

⬛ Inconsistent expectations. Why did that person get away with being so contradictory to the culture? One example was a business development person. He had contacts in a key area in which the company was trying to grow, so apparently, that meant he could belittle his coworkers. Letting people get away with behavior contrary to the culture because they might bring in revenue damaged trust in management.

⬛ Weak management. Trust was diminished by everyone who saw how the one coworker was able to treat people. Additionally, people had spoken to their immediate supervisor about the coworker, but all they were given was lame advice to “buck up.” The disruptive coworker was never given feedback or held accountable to behave in alignment with the culture.

⬛ Ineffective HR. People had complained to HR too. By the time people turn to HR, an issue has been going on a long time and solutions have been attempted. When HR does not talk with the manager or employee involved, they further support the disparate culture. Once that happens, culture confusion cuts across the organization.

On the other hand, there were examples of great role models shared too.

One example was a telecom company CEO who visited the call center to learn directly from the people about their issues. He did not go to listen to customer calls. He went to hear from the employees about their needs. The call center leaders encouraged the conversations, took notes, and helped expedite the solutions.

What a far cry to the days of when the CEO’s visit would include days of preparation of phoniness, like measuring to be sure the blinds were exactly one foot above the ledge.

Cultures will adapt and evolve based on how they are treated. Companies who treat their cultures like the strategic assets they are will be able to adapt, evolve, and innovate better and faster. Their people will be happier too. That’s why VCG does the work we do! If you need help in this area, check out our Culture Services and give us a call.

Learn from McDonald's: A blurry moral compass leads to years of costly issues

When the CEO's moral compass is blurry, you can bet the ethical one is too.

McDonald's, who has access to all the resources in the world, has been dealing with a serious culture breach caused by the failed moral compass of its former CEO for more than four years.

Two days ago, McDonald’s plight was in the news again because the SEC charged the former CEO with misleading investigators about reasons for his firing in 2019.

Let's consider the impact of the issues McDonald's has been facing, so you can be prepared just in case:

⚫ If someone breaks the rules in one area, you can bet they break or bend rules in other areas too. For example, if it's okay to bend the rule about one relationship, like the former CEO did, they are likely to bend the rules about other relationships too.

Beyond that rule, however, you better keep a keen eye on other rules because the relationship rule might not be the only one broken.

⚫ Others look up to the CEO and will follow along breaking rules too. If it's okay for the CEO, others will think it is okay for them to break rules related to relationships, exaggerate expense reports, lie on client project hours, skip recording PTO usage, and more.

⚫ Lies are expensive. McDonald's spent millions of dollars and countless hours because of the former's CEO's behavior. And, they still are! Does your company have either of those to spare?

On a personal note, how humiliating it must be for one’s ongoing moral failures to put grown adults in the situation of having to call the law firm and insurance company to explain the situation.

⚫ The reputation damage to the brand is embarrassing and costly in other ways too. Top talent does not want to work for a company that allowed that kind of behavior. When poor behavior is accepted, people lose trust in the decision makers. They will not bring their A game when trust dissipates.

The message sent to other top employees (and all employees) is that leadership is weak, values don’t matter, and money over purpose. No one brings their best in those circumstances.

In some cases, customers will lose trust and take their business elsewhere too. Now, McDonald's probably did not lose many consumers over the former CEO. Their great french fries far outweigh the impact of the former CEO to consumers. Most companies’ products and services don’t have that luxury.

There are companies out there with very similar issues right now. Here are a few indicators of culture issues.
◼ No women on the SLT. Or, the one or two top women keep leaving, to be replaced by men.
◼ The company's attorney or other leaders lie in meetings about culture. Obviously, there is more cover-up happening.
◼ When asked about a company, and heads turn, eyes bulge and people whisper, "Oh, you don't want to know about that place." In that case, pray for people who work there and move on because the person whispering is probably right.

Company culture goes way beyond people being nice to each other.

We are able to dig deeper and help leaders face the bigger issues that can damage their companies, reputations, and legacies.

We work with leaders to help them avoid the pain of McDonald's. McDonald's has all the resources in the world, and a costly culture breach happened there.

What resources does your company have? Reach out privately if you need one.

In the meantime, be on the lookout for blurry compasses. Don't let someone else's blurry moral compass blur your own.

Quiet quitting: how companies can capitalize on the employee trend

As shared in the previous post here (Quietly quitting the rat race to live life on their own terms), Gallup’s latest engagement survey says at least 50% of employees fall into the disengaged category. Disengaged is where Gallup puts the “quiet quitters.” We prefer to call them Rat Race Rebels.

As discussed previously, the Rebels do their jobs. No less and no more. They set boundaries and won’t work beyond forty hours for free. Elise Freedman, Senior Client Partner at Korn Ferry, says quiet quitters decided, “I want to prioritize my well-being overall and things outside of work." (Source: CBS MoneyWatch)

They quit the rat race of working extra hours for free in the hopes of being promoted up the career ladder someday. And, they’ve been warned in recent years that there is no career ladder. It’s more of a lattice now, but they’ve been pushed and pressured to keep working long hours anyway. They have opted out.

Another interesting point from Gallup’s September 6, 2022 survey is the cause of increased disengagement. Gallup says employees are more disengaged since the pandemic because they do not have…

1️⃣ Clarity of expectations

2️⃣ Opportunities to learn and grow

3️⃣ Feelings of being cared about by the company

4️⃣ A connection to the organization's mission or purpose

People don’t want to sacrifice their health and personal lives and feel used just so upper management gets its bonus or so the business owner can send demanding emails from another exotic vacation. They don’t want to come in on Sunday to create the unnecessary TPS cover sheets! (Office Space reference, anyone?)

That makes sense. Doesn’t it?

Everyone cheered when Peter and his colleagues took out their frustration about the corporate coldness on the copier in the movie Office Space because we could relate. Finally, someone rejected the ridiculous and offensive. That’s what the Rebels are doing now. Well, they’re being quieter than beating up the copiers.

The gigantic problem is: many companies and leaders make people feel used. People are rejecting that treatment in 2022.

We have been talking about the importance of expectations, opportunities, care, and purpose for twenty years! Companies and leaders who focus on those four things make sure employees do NOT feel used.

Thankfully, many companies cared about their people and culture long before the pandemic. They showed it when the pandemic began by prioritizing employee health and safety over all else right away. Those companies are listening to employees and being as flexible as possible to accommodate schedule and location preferences.

Other companies are just starting to recognize the importance of seeing employees as people and seeing the bigger picture of all the people together.

What caused this newly found interest in people and culture?

The sudden interest was caused when turnover and time-to-hire reached levels that seriously jeopardize financials. The combination of the Great Resignation and quiet quitters broke the system that companies relied upon for years.

The fact is, many companies depend on the free labor the Rebels are no longer donating to their employers. Companies plan project timelines, budgets, and client deliverables around free labor they do not have access to now.

What can companies do now? Can companies inspire the Rebels back to their old productivity levels?

Probably not.

However, companies can capitalize on the phenomenon so it works better for the company and the employees. It cannot be one-sided in favor of the company. If you truly care about your people, you can execute the five actions below genuinely.

Here are five actions companies can take to capitalize on the Rat Race Rebel phenomenon:

ACTION #1: Re-engage managers. Managers have borne the brunt of the pandemic inside most companies. They had to figure out new processes, systems, and communications. Plus, they had to deal with the emotional and physical toll of the pandemic on employees. All while taking care of themselves and their own loved ones health and needs. It was a lot. Managers are burned out. Re-engage them. Show you appreciate them by listening to their needs and suggestions.

ACTION #2: Clarify manager responsibilities. The managerial role is likely different now than it was pre-pandemic. The workflow, schedules, and location of workers may have caused the need for managers to shift how they plan, organize, and lead. Clarify the company’s expectations of them, and be sure they have the resources needed to succeed.

ACTION #3: Outline a vision. There are two parts to this one. First, for the company: Be sure there is a short-term and long-term vision for the company. Ensure everyone knows how their role contributes to it. Second, for individuals: Invite employees to create a vision for their own lives. Thinking through short-term and long-term aspects of life like financials, for example, may inspire some Rebels to boost engagement. They won’t work twenty hours extra weekly for free, but they may work five and ask for a training course if they envision a career path for themselves. (Tools leaders can use with their teams for this vision exercise were shared with Voyage VIPs this week. If you would like the resource also, please click here to join as our guest.)

ACTION #4: Boost accountability. Everyone should understand the work contract and agree to it. Train managers on delegation, expectations, and communication so accountability is possible. This is key to helping the company benefit from the gifts the Rebels bring to their work.

ACTION #5: Teach managers to coach. Coaching is a new hat managers need to wear now, and it takes practice. One thing managers need to coach people on is the impact of being a Rat Race Rebel.

For example, if someone opts to work from home every day while everyone else on the team chooses to come into the office, they choose to miss daily interactions with coworkers, spur of the moment invitations, and informal mentoring, which may lead to being less prepared for more responsibility, job changes, or promotions. Managers should coach people so they know the consequences of their choices and so managers can support their choices. Lack of coaching can be perceived by the employee as disinterest, which leads to greater disengagement and turnover.

Many managers have given up on the Rebels, but the Rebels could benefit the company. They bring more outside experiences, greater creativity, emotional stability, and less stress. It’s worth it to re-engage managers and help them engage the Rebels and everyone else.

People want clarity, growth opportunities, connection to meaningful purpose, and to know you care. The five actions shared here will help companies and leaders show people they matter more than management’s bonus. When you move the needle of engagement, you capitalize on the quiet quitter trend other companies resent. While your competitors are holding meetings about how to get back at the Rebels, you’re figuring out how to meet them where they are. You will win.

New employee habits call for new management practices. The same old ones won’t work anymore.

(If your company needs a management skill refresh to meet needs of today’s employees, we’ve got you covered. Click here to schedule a call to learn more.)