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5 Rules You Should Eliminate Now

By | June 7, 2011

Serial CEO

Margaret Heffernan

Biography

Margaret Heffernan

Margaret Heffernan

Margaret Heffernan worked for 13 years as a producer for BBC Radio and Television before running her first company. She has since been CEO of five businesses in the United States and United Kingdom, including InfoMation Corporation, ZineZone Corporation and iCAST Corporation. She has been named one of the Internet's Top 100 by Silicon Alley Reporter and one of the Top 100 Media Executives by The Hollywood Reporter. Her books include The Naked Truth, How She Does It: How Female Entrepreneurs are Changing the Rules for Business Success , and the upcoming Willful Blindness. She has appeared on NPR, CNN, CNBC, and the BBC, and writes for Real Business,The Huffington Post, and Fast Company.

The dirty little secret of business today: there really are no agreed-upon ways of doing business anymore. Every company does everything differently, and you can’t really compare them because there are no controlled experiments. So it isn’t a science.

But here are five very old rules that I see successful companies breaking all the time. I thought they’d give you some food for thought - unless you’re already breaking all of these– which I very much doubt.

1. Set working hours

Forget 9 - 5. Try to get rid of face time. All your team should have goals they’re accountable for but when and where they’re achieved really doesn’t matter. Some people work well at night, some early morning, some don’t get up til noon. I’ve always told my employees that, as long as they didn’t mess their co-workers around, I didn’t care what hours they worked. No one let me down.

2. Limit vacation time

The communications firm Global Tolerance doesn’t give employees vacation allowances. They just trust people to manage their time on and their time off in such a way that co-workers and clients aren’t disappointed. With a 40% per year growth rate for the last 4 years, this does not appear to have hurt them. To the contrary, it’s one of the things that has provoked high levels of commitment.

3. Agonize over maternity leave

Everywhere I go, business owners tell me that, sure, they want to hire women - but especially in small companies, losing a key employee for weeks or months on end, due to maternity, isn’t feasible. In Europe, where there’s statutory maternity leave (actually there is everywhere in the world except Lesotho, Papua New Guinea, Swaziland and the U.S.), being required to give women time off enrages many men. Every woman I’ve ever employed wanted to come back to work and wanted not to lose touch. With each one, I reached a different agreement about how we’d manage the time off - and in no case was I disappointed. Some did a day a week all through their leave; some wanted to come back early and take time off later. All these formations worked.

By the way, individuals may choose whether or not to have kids but they can’t choose whether or not to have parents. So think about maternity leave as your rehearsal for the day when most of your workforce have elderly parents they need to attend to.

4.  Fire slowly

Everyone makes mistakes hiring, whether they are quick and instinctive or slow and methodical. And usually that mistake is obvious in the first 6 months. Do not think you can turn this around. It’s distracting, time-consuming and you will fail. If you goofed, ‘fess up and move on.

5. Skimp on severance

This comes via Jonathan Kaplan, CEO of Pure Digital. “We gave our workers four to six months’ severance, even if they’d worked only four months. You might think that’s crazy. But it was our mistake to hire that person. And it’s not that much money, really.” Of course those employees left the company feeling pretty good about it - and spreading the word that it was a good place to work. Cheaper than headhunters!

Are there any old rules that you’re breaking? Would you try breaking these five? Why or why not?

Further Reading:

Talkback Most Recent of 37 Talkbacks

RE: 5 Rules You Should Eliminate Now
You just described the dream company everyone would love to work for...treat people with respect and as if they are adults and MOST will rise to the occasion and wow you. A few won't, but you'll know who they are so fast you can make the change before it hurts too much.
ZDNet Gravatar
lizzratt
06/07/2011 03:05 PM
RE: RE: 5 Rules You Should Eliminate Now
@lizzratt Oh yes such demand for street sweepers, toilet cleaners, cheap labourers and thousands of other low income jobs.... Lots of jobs, few taking them up, and often not the funds to employ them
ZDNet Gravatar
mist42nz
06/08/2011 03:20 PM
Re Rule 4: Fire Slowly
1. Maybe the company needs to change, not the employee - assess wisely, sometimes this can save the company in the long run
2. Sometimes the employee can be saved with a good coach, mentor, or training program
3. If all else fails, fire delicately, and with respect.
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Pambytes
06/07/2011 03:31 PM
BNET Blogger
RE: Re Rule 4: Fire Slowly
@PamBytes The respect part is essential. But I would caution about too much agonizing. Every time I've had to fire someone, by the time I'd tried all the alternatives, everyone else was fed up, frustrated and wondered what I was waiting for. Every CEO I've known has said the same thing: by the time the deed was done, they and the rest of the workforce were wondering: why didn't I do that earlier?
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Margaret Heffernan
06/08/2011 12:22 AM
RE: Re Rule 4: Fire Slowly
@Pambytes #1 is sometimes the case, and should be looked at if you're having to fire more than a very small handful of people. We like to handle this in the hiring process by making hiring decisions with input from the whole team when feasible.
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MissMichal
07/10/2011 11:28 AM
RE: Re Rule 4: Fire Slowly
@Pambytes I've had experience in this as a colleague of a problem employee. In this case, my employer took so long to handle the situation, a bunch of us decided to leave. Unfortunately for the company the four of us combined accounted for nearly 50% of sales. What's more the 'problem' person wasn't a superior, rather in a lower ranking position.
On your point no.2, employees that simply need coaching or training are rarely problem employees. In most cases the problematic ones lack discipline, attitude and dire still, lack concern whether for their jobs, the company, even their co-workers. Usually, their problems are beyond what regular training/coaching can solve.
My mentor told me this: "Keep your ship clean, good people leave if it gets dirty."
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freanz5
07/11/2011 10:13 AM
RE: 5 Rules You Should Eliminate Now
I suspect I'm misunderstanding something, but are you sure Australia doesn't have statutory Maternity Leave? I though "Paid Maternity Leave" was mandatory (in Australia).
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Nugby
06/07/2011 03:55 PM
RE: RE: 5 Rules You Should Eliminate Now
@Nugby Yes it is now a government mandate scheme.
In response to Rule No3 - if womend don't have children pretty soon your business would run out of customers. the point of it is having a child doesn;t have to mean giving up your career.
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sean mcnamee
06/07/2011 04:01 PM
RE: RE: RE: 5 Rules You Should Eliminate Now
Thanks, Sean. Laughed at those backwards Kiwis, got to the next word and thought "What!?!".
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Nugby
06/07/2011 05:04 PM
RE: RE: RE: 5 Rules You Should Eliminate Now
@sean mcnamee Actually, Australia has had 12 months unpaid maternity leave since the early 70s.
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annecasey
06/07/2011 07:25 PM
BNET Blogger
RE: RE: 5 Rules You Should Eliminate Now
@Nugby In the 2010 budget, the Australian government introduced an 18 week paid maternity leave scheme starting in 2011. It is to be publicly funded, and to provide the federal minimum wage (currently AUS $596.78 a week) rather than a percentage of the primary caregiver's salary. It will not be available to families wherein the primary caregiver has an annual salary above $150,000
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Margaret Heffernan
06/08/2011 12:27 AM
RE: RE: RE: 5 Rules You Should Eliminate Now
Thanks also, Margaret. This will probably be relevant to me (well, my wife mostly!) in the next year or so.
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Nugby
06/13/2011 09:41 PM
RE: 5 Rules You Should Eliminate Now
All, very good points. People want to be trusted and valued. Employers need not treat employees like a piece of machinery, while treating the clients like royalty. Everyone deserves the same amount of respect and loyalty.
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Adrienne Robinson
06/07/2011 05:49 PM
RE: 5 Rules You Should Eliminate Now
Didn't know these were the rules, at least not after 1965 or so.

Ron
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Aajax
06/07/2011 06:07 PM
RE: 5 Rules You Should Eliminate Now
lizzrat, you're overly optimistic. Most company rules are there because most employees aren't adult enough to respect the liberties described in this article. And while high-tech and professional companies can work without these supposedly horrid rules, I suspect most jobs require employees to show up when scheduled, and don't have the flexibility to let them decide when they feel like working. Think about these the next time you go to a grocery or Target, or you want your clothes pressed, or a package delivered according to *your* schedule. These may be great ideas, but they don't work for everyone.
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swolfearch
06/07/2011 07:23 PM
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