A peek behind the curtain of Tesla’s culture reveals it’s missing one key ingredient: warmth

Tesla CEO Elon Musk has given a glimpse into the company’s culture via several all-staff emails he has sent in the last three weeks (dates are links to articles):

• June 12, 2018: Musk informed staff of an immediate reorg which would result in 9% of non-production staff losing their jobs.
• June 18, 2018: Musk advised about an employee who conducted “extensive and damaging sabotage to our operations.”
• July 1, 2018: Musk celebrated a production milestone of building 5,000 cars last week, the last week of its quarter.

The first email was shared on Business Insider in an article called, Ex-Tesla employees reveal the cryptic ways they learned they were getting laid off. “Cryptic”? An interesting word choice, which prompted further curiosity about Tesla’s culture. Tesla and Musk are often in the news for being innovative, for raising billions of dollars without ever being profitable, and for disrupting the automotive industry. Unlike Google, Tesla’s culture is not often in the news.

Since it's so innovative, wouldn’t its culture be innovative too?  

Musk’s emails, recent articles, Tesla’s website, high executive turnover, and recent job postings confirm only part of the assumption about Tesla’s culture is true. Tesla nails the modernization of equipment, systems, and processes. (Well, nails as far as production but not as far as profitability.)

It appears Tesla falls short on modern management and leadership. “Falls short” doesn’t mean they hit zero relevant needs of today’s employees. The missing ingredient is warmth. Or, call it compassion, authenticity, genuine connection, or caring. Whatever you call it, it’s missing.

Tesla’s messaging appears to promise a workplace where you are expected to be the best and you could expect to work with other really smart people to solve big challenges. It does not appear to promise an environment where it cares about the whole person.

For example, on its website, Tesla’s career page describes its culture as, “Fast-paced, energetic, and innovative.” Its website does not, however, list its values.

Job postings include legal messaging about inclusion, along with the following, in the About Tesla section at the bottom: 

Our world-class teams operate with a non-conventional philosophy of inter-disciplinary collaboration. Each member of the team is expected to challenge and to be challenged, to create, and to innovate. We’re tackling the world’s most difficult and important problems—and we wouldn’t succeed without our shared passion for making the world a better place.

To Tesla's credit, it does not promise newcomers more than what they appear to be getting. It tells potential employees what is expected of them and does not say much about what it does for its people. 

When more companies, especially tech startups, are building cultures to encourage work-life balance and integration, Tesla is not focused on the human part its culture. It is focused only on its Mission.

So what, you might ask? Why does culture matter? Isn’t such focus on Mission admirable?

Yes! Focus on Mission is not only admirable, it is essential. The reason warmth is important is not the “why” of Tesla, its Mission. Warmth is important for the “how,” its execution. Tesla relies on people, and people want to be treated with respect, dignity, and value at work. Even smart people, like those who work for Tesla, have expectations of their leadership team and managers. No one wants to feel like their employer chews them up and spits them out. Burnout does not truly inspire or instill innovation or collaboration.

As long as it is doing mind-boggling work, Tesla will continue to attract top talent. Newcomers may be joining with the Andy Sachs attitude from Devil Wears Prada: just stick it out for a year and you can work anywhere. That attitude is not the same as someone who brings their A game to work every day, and its impact on company performance is not the same either. When a company wants people to bring their A game to work, it needs to show people they matter.

Paychecks get what someone has learned already, not continued learning and thinking. Paychecks get bodies, not minds and hearts. 

The good news is Tesla does not have to choose one way or the other. It can focus on its Mission AND its people. It can care about its people all the time, not just when it hits a production milestone. Tesla is so innovative with systems and processes, it surely could embrace more contemporary leadership practices.

The current culture has led to internal sabotage, high executive turnover, no profitability for fifteen years, and a round of layoffs of 9% of its staff. Perhaps it’s time to add the missing ingredient so its culture could propel Tesla forward, improve its chance for long-term sustainability, and help it accomplish its Mission.

Updated July 11, 2018 12:30pm
Just after calling out Elon Musk and Tesla for lacking warmth, they had the opportunity to aid the rescue of twelve boys and their soccer coach from a cave in Thailand. Musk and Tesla stepped up and worked with the rescue team to create a second option, which might be needed if the first strategy could not rescue the group. I may have called them out for lacking warmth (not entirely, mind you), but others were much more critical.

Musk and Tesla were severely criticized for two things: helping only for publicity and for the improbability of their solution. Referring to their help, Musk says, "Something's messed up if this is not a good thing." Musk and his team stepped up to help. Whatever their personal motives, or however cynical or skeptical an onlooker is, it was indeed a good thing.  

How to ruin rewards and recognition

A professional colleague recently shared her story of being summoned to the executive conference room of her employer. Normally such a summons would spark nerves, but she knew something good was about to happen. Laverne* and a teammate, Shirley, had just completed a big project that brought compliments from their client. Laverne was excited and eager to hear from the management who normally attended such meetings.

When she arrived to the conference room, Laverne was greeted by her supervisor. The supervisor’s boss, Lenny, also was there but did not speak to Laverne. The executive spoke to Shirley because they had worked together longer but did not address Laverne upon arrival, while recognizing the accomplishment, or upon their departure.

While bestowing a nominal reward to the pair, Lenny made three crucial errors:

1. He never looked at Laverne
2. He misstated Laverne’s contributions
3. He mocked the dollar amount of the award

When Laverne told me the story, she said it still irked her even though it had happened weeks ago. She said she would not have cared that the write-up was incorrect if the presentation had been kind and sincere.

Management failed to capitalize on the opportunity the situation offered. Lenny could have solidified a bond with a super employee while he enjoyed reminiscing with a long-time coworker, yet he missed it. He could have inspired two superstars to continue their strong performance, yet he did the opposite. He could have motivated two staff members, yet he became a laughingstock as they shared their story with other coworkers. He became a laughingstock and so did the award.

What the company intended as a sincere gesture failed because management did not buy in to it, or was too stressed to execute accurately, or was unable to recognize the real opportunity in front of him. The reward and recognition backfired because of the delivery.

Laverne’s experience is not unique, unfortunately. Many managers treat recognition meetings as intrusions on their day. Here is a video which demonstrates several different bad approaches to reward and recognition meetings: 

Real leaders will see reward and recognition meetings as great opportunities to cement employee commitment to the company. Leaders will see the value of the meetings and will treat the recipients of the awards with honor, which will in turn inspire them to keep performing well.

* Names changed

Is your business motto "close enough"? Here's the one way to tell

Today I was treated to lunch at a mid-priced restaurant on Kansas City's Plaza. The restaurant has been known for outstanding service for at least 25 years, and today was no exception. Don't you love when the server is friendly and professional, the server knows precisely when to interrupt and when to back off, the food is delivered as order to the right person, and the bill is accurate and easy to process? The restaurant enhanced the experience with a colleague.

It was almost perfect.

The only mistake was one of miscommunication. (Aren't they all?)

This one was about Diet Coke. When the server took beverage orders, the requests were for water and Diet Coke. She returned with water and Coke Light. Coke Light is not Diet Coke. For the uninitiated, they might seem like the same thing. For Diet Coke aficionados, the difference would have been like serving lite beer to someone who ordered Guinness or Guinness to someone who ordered Diet Coke.

The restaurant is ultra service oriented. They care about the dining experience. People often chalk miscues like this up to disinterest, lack of caring, or laziness. None of those apply here. I also would not presume they get Coke Light for less than they could get Diet Coke, so I doubt it is financially based either.

This misunderstanding of their customer is based on good intentions, and fixing this could improve the dining experience of their customers who order Diet Coke. As a Diet Coke fan, I was surprised a different beverage was delivered then was disappointed when it was not tasteful to me.

When customers tell you what they expect (e.g. Diet Coke) and you deliver something close enough (e.g. Coke Light), what message are you sending them? 

The restaurant on the Plaza does many other things right, so the beverage did not ruin my experience today. It will not prevent me from going there in the future. But, I would not bet the same in all circumstances.

I would bet the message to customers at most organizations is, "We deliver close enough."

If your motto is not "close enough", listen to your customers. Talk, ask, listen, hear. Pay attention and listen some more. If you have not asked your customers about their experiences in a real way to enable them to share honestly and to enable you to hear them, your motto might be "close enough" whether you like it or not.

How you can ace Georgetown University’s challenge

Okay, so most of our SAT scores might not prompt Georgetown to offer us scholarships. Maybe we wouldn’t coast through with straight A’s. But, there is one challenge Georgetown just issued that everyone could ace. I think we all can do it.

In the usual rush through our day, we walk by people without noticing them. In fact, we might even have conversations without really noticing people. Think about the store clerk, coffee shop barista, or copy center employee. How often do you have time to truly pay attention to those folks? If your mind is focused on your day, it might naturally cause you to overlook people, assuming their minds are just as preoccupied. There is no negative intention, and probably no rudeness either.

All In strategy #3 is Notice Others. Stop letting what’s on your mind cause you to overlook others. One business student at Georgetown did just that. Mr. Bellamy and Mr. Batchelor both have nightly routines at Georgetown’s library. Mr. Bellamy studies at the library, and Mr. Batchelor cleans it. One recent evening, Mr. Bellamy stuck up a conversation and what an All In experience happened after that.

It turned out, the janitor had similar ambitions as the business student. The janitor makes great curry chicken and wanted to open a business. The business student used his skills to help his new friend get started. Now, Mr. Batchelor’s chicken is famous on campus and he is on his way to operating a successful business.

The story doesn’t stop there, however. Here's what happened at Georgetown:

Mr. Bellamy noticed even more people on campus—cashiers, cooks, cleaning staff, and more. He and his friends started listening to the stories of the people working on their campus, and they began to help some of them. One man is going to visit his family in South Sudan for the first time in 45 years, thanks to help from the Georgetown community.

Georgetown formalized the effort to create more opportunities for connections between staff and students, and they call it Unsung Heroes.

Georgetown is All In! They have habit #3 down! Their students issued a challenge for the rest of us. They challenge us to notice unsung heroes in our own lives. Are you in?

Can you slow down enough to pay attention to the people you come in contact with each day? Notice them, talk to them, listen and learn from them. Can you establish an Unsung Heroes connection program at your school or workplace?

Maybe we all cannot beat Georgetown student’s SAT scores, but we can join them in living All In by noticing others.

(Source: Washington Post 10/13/2016) 

Happiness is over-rated

“Cut the happiness crap, Tyler!”

That’s what a coworker used to holler at me when I was cheerful at the water cooler at 7:00am each work day. He said it with a smile and proclaimed he was teasing, but it stuck with me. Twenty-five years later, I think that guy was on to something.

There is a lot written about happiness these days. Amazon has 22,329 books on the subject right now. A Google search found 46 million articles, with most promising to tell us how to be happier and why we should seek happiness. I have read a few articles about happiness, and I agree with much of what is researched and written about it. However, there is something missing.

There are three perspectives overlooked in the highly publicized search for happiness millions seem to be conducting, and they are worth pondering.

1. The expectation to be happy. If we expect to be happy all the time, we will be thrown off when life takes an unavoidable turn. The fact is, life’s journey includes some detours once in a while. People get sick, companies close down, children become teenagers. Life happens, and it’s not always full of skipping through sunflowers whistling Zippity Doo Dah. When we expect to be happy every day, we either shove the sadness deep inside to hide it or we are overwhelmed by the bad stuff and get stuck in misery.
2. The pressure to be happy. The peer pressure to be happy causes stress and can damage relationships. When you’re struggling with one of life’s obstacles, and you turn to a friend for support, do you love it when the friend says, “You shouldn’t be disappointed by your manager leaving the company. The new one will be even better.” We don’t really enjoy someone else pressuring us to “get over it.” We all have feelings we need to grapple with, and we will do so in good time. Pressure not to feel the sadness is not helpful.
3. The lost opportunities caused by happiness. The expectation and pressure to be happy cause us to miss out on the benefits of adversity. In our effort to be happy every minute, we are likely to take fewer risks or deny a challenge facing us. Happiness can blind us of reality and prevent us from rising above obstacles, which is unfortunate because there are few feelings better than those experienced after surmounting an obstacle or staring down a challenge. We rob ourselves of those feelings by trying to stay happy all the time.

When we deny life’s detours or go out of our way to avoid them entirely, we are telling ourselves a few things. We’re saying, “You’re not capable of overcoming that obstacle.” Or, “You’re not good enough to figure out a new way.” Or, “No one cares if you reach the destination.”

Let’s not sabotage ourselves with such negativity. Instead, let’s face the reality of all situations and let’s face challenges head-on. Look forward to the sense of accomplishment, don’t avoid it. We don’t have to “cut the happiness crap” completely. Let’s just keep it in perspective.