Get Carded
There are two ways to boost profits: Increase revenues or cut
costs. Gerald Wright, president of All American Moving Group LLC in
Memphis, Tennessee, takes the latter route seriously.
The 37-year-old slashed his general and administrative costs for
payroll by 60 percent when he moved to direct deposit-though many
employees didn't have bank accounts. He gave those workers
payroll cards that can be used at First Tennessee Bank ATMs.
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Hesitant at first, employees quickly realized the bank's
monthly $5 fee saved them the 2 to 3 percent charges at gas
stations and other check-cashing outlets.
Bank of America and other banks have similar pilot projects. And
now Visa and MasterCard are getting in on the act. Who would've
thought a cost-savings measure could also be an employee
benefit?
"That'll Never
Work!"
In his book Weird Ideas That Work: 111/2
Practices for Promoting, Managing and Sustaining Innovation
(Free Press), Robert Sutton explores such counter-intuitive
management techniques as getting happy people to fight and hiring
people you don't need. We asked him about these and other
cornerstones of success for creative firms.
Should creative work environments be happy ones?
Robert Sutton: No. In fact, you
should seek and incite discomfort. When we're in the mode of
doing something new and difficult, we're unhappy. This is the
domain of creativity.
What types of people should you hire to build a creative
company?
Sutton: Hire at least a small
percentage of oddballs, or smart people who "don't
get" how they're supposed to act or think. They are
difficult. You and others probably won't like them, but their
ability to think differently is the key to success in [companies]
from Sun to Atari to IDEO.
What's the biggest mistake entrepreneurs make when they
try to be creative?
Sutton: They search out people
who tell them how wonderful they are. You want to be optimistic but
be exposed to people who disagree with you and have other
perspectives. [Former Intel CEO] Andy Grove thinks you're
useless if you agree with him. He may not be the nicest person in
the world, but he knows how to get the ideas on the table.
Stepping Down
The economic slump has high-level execs hitting the pavement.
These veterans could offer just what your company needs-but will
they take a lower position than they'd previously held,
probably for less cash?
The answer may surprise you. Ninety-three percent of executive
search firm Drake Beam Morrin Inc.'s offices report that
executives "sometimes" or "often" take
positions that offer lower salaries or titles than they'd held
previously. The key is finding an executive who won't flee to
greener pastures when the economy improves. You'll need to sort
through the downsized talent and try to understand their
motivation-and how to motivate them, says Charley Donohoe, managing
consultant in Drake Beam Morrin's Winston-Salem, North
Carolina, office. To executives stifled by corporate bureaucracy,
you represent an opportunity. "[The prospect] sees the
excitement of going in and making an immediate impact," says
Donohoe.
Keeping that energy intact requires selling the candidate on
your potential. If you plan to offer equity or bonuses, spell out
the details early. Just realize that money isn't the only
motivator. Downwardly mobile individuals might want your opening
because they don't want to leave the geographic area. Others
might be looking to scale back their responsibilities as they
approach retirement. Either could make a great addition, as long as
you allow them to contribute.
Business writer Chris Sandlund works out of
Cold Spring, New York.
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