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A cartoon in a recent issue of The New Yorker magazine shows a company personnel officer explaining to a job candidate, "We expect little loyalty. In return, we offer little security." Those 10 wry words succinctly sum up the modus operandi driving many companies in today's hard-scrabble business world. Gone is the "we are one big family" approach.

In its place has shot up the diametrically opposed philosophy of leaner and meaner. This change in procedure has made the job of managing and motivating employees more challenging than ever.

In his book, Getting Employees to Fall in Love with Your Company, management consultant Jim Harris draws a comparison between the "dream career" of the 1950s and 1960s and today's "extreme career."

"The goal of the dream career was to join a good company and learn lifetime job skills," he writes. "And people with a college degree were often placed on the management fast track, a sure path to opportunity. While the company held all the cards, that was okay because of the knowledge that the company would take care of you."

In return, employees reciprocated with unconditional loyalty, which was measured in years of service. It was the era of one company, one career, and company veterans (or "lifers") were proud to be known as "company men."

The dream career was not without its drawbacks, however. The job came first, and family life was not supposed to interfere. "Don't bring your family problems to work" was the rule of thumb.

Today's extreme career stands in sharp contrast, as Harris points out. Gone is the reciprocal agreement of a lifetime job guarantee for a lifetime of company loyalty. In fact, it's estimated that today's employees will hold eight different jobs during the course of their careers, four of which will be terminated involuntarily.

Downsized workforces are expected to carry loads once toted by many employees, causing health, morale and productivity problems. Moreover, with the compression of layers of management, opportunities for upward advancement have shrunk dramatically. Observes Harris ironically, climbing the corporate ladder has been replaced by scaling the corporate step stool.

Equally significant is that the line between family and work has been diluted, if not erased altogether. Men and women work in almost equal numbers and share responsibility for the care of aging, often infirm, parents, as well as offspring. Family problems are frequently carried over to the workplace, giving birth to a host of new issues with which employers must deal. For many people, career has been replaced by family and quality of life as the paramount concern.

The difficulty, writes Harris, is that while employees recognize the new realities and have adjusted their thinking accordingly, many companies and their management have not.

"Faced with the prospect of lifelong job uncertainty and insecurity, employees are searching for opportunities that engage their spirits, ignite their souls and balance their lives," he says. "However, most companies have failed to adjust their thinking or their operations. Just as workplace rules have forever changed, so too must the way companies meet the new motivational needs of today's employee."

Money Isn't Everything

A survey of the 1994 graduating class of Harvard Business School revealed that money only ranked seventh on the list of criteria for choosing a new job. Factors such as breadth of responsibility and corporate culture ranked higher.

Corporate culture is gaining in importance in the eyes of today's employees for an organization's culture often reveals the most about how people are treated. As advocated by Tom Peters and Robert Waterman, Jr., in their bestseller In Search of Excellence, "Treat people as partners; treat them with dignity; treat them with respect. If you want productivity and the financial reward that goes with it, you must treat your workers as your most important asset." The authors call this a "genuine people orientation."

Do Unto Others

Judy Madrigal, founder of Madrigal & Associates (see profile at end of this article), exemplifies this genuine people orientation, treating her staff just as she wants to be treated. She calls this her "Golden Rule" approach to management. Experts like Danny Cox, author of Leadership: When the Heat's On, believe she's on the right track.

"Leadership is an earned honor, not something that comes with the job," says Cox. "Effective leaders and managers earn their employees' respect by helping them grow and develop. Your employees are your customers, and they will treat external customers - the ones with money in their pockets - the way you treat them."

He urges entrepreneurs to remind themselves, "'My people are as committed to the organization's success as I am to the success of each individual. How much is that?' Many entrepreneurs fall down here, but you've got to realize your people are the pillars on whom rest the success of your business."

The Power of Praise

A pat on the back or a few words of appreciation go a long way toward improving employee self-esteem and motivation, reports an article in Entrepreneur magazine. According to consultants interviewed for the article, praise is "startlingly rare - workers ordinarily get four or more harsh pokes for every sweet stroke they receive from the boss. And even if workers don't quit when criticism is regular and intense enough, many will quit trying to excel."

Says David Banner, business consultant and author of Designing Effective Organizations: Traditional and Transformational Views, "Praise is how we get peak performance. If you're not telling your people what they're doing right, how are they ever supposed to know? The more you tell them what you appreciate, the more of it they will do. If you'll settle for average performance, go ahead - scrimp on praise. You'll probably get by. But if you want high performance, you have to recognize it when you see it."

Promote from Within

One way to help employees grow and reach their full potential is through upward mobility. However, promoting from within is something managers are often reluctant to do - for a number of reasons. For one, companies sometimes prefer to go outside because they believe it is easier to find a candidate who already knows how to perform the job they want done. For another, internal promotions can go awry - despite the best intentions - if the wrong person is chosen.

But going outside can have demoralizing consequences. Employees, especially those desirous of advancing in the organization, may see your looking elsewhere as a sign that you don't have enough confidence in their abilities to give them a chance.

So how do you help employees move up your company's ladder? "Understand what skills are needed to succeed in the new job, then give the promotion to the candidate who best matches the skill profile," advises Joseph Weintraub, an associate professor of management at Babson College in Wellesley, Massachusetts.

And once you've promoted the individual, train that person in any missing skills needed to prosper in the new position. "Many businesses provide virtually no training," Weintraub claims.

The solution: Set an explicit learning agenda. Then help your employee master what's required, either by doing the teaching yourself or pointing the person in the direction of appropriate classes. This doesn't have to be expensive, especially when taking advantage of the menu of business courses offered by local colleges. As Weintraub warns, "If you don't invest in the necessary development now, there will be a price to pay later on."

Also be sure to clearly define what is expected of the employee in the new job. Start by writing a description of what the employee can specifically expect from you and what you expect from the employee. Then sit down and review it together. "Basic as this would seem, it very rarely occurs," says Weintraub. "What usually happens is that the newly promoted employee is left to find out the facts the hard way."

Be open if the employee wants to reverse roles and describe what is desired from you. The more clearly your mutual roles are discussed, the better. Moreover, such a discussion will strengthen communication and build trust.

Lastly, encourage new managers to ask questions. Fledgling managers often feel very uncomfortable seeking out information from the boss because they're worried that their questions will be interpreted as signs of ignorance, weakness or incompetence. Experts advise meeting with new managers at least once a week for an hour or so. It's not necessary to have an agenda, as the underlying purpose of these sessions is to let them know you are there to help.

Let Your Managers Manage

Delegating work, responsibility and authority can be difficult for entrepreneurs, who are often proponents of the adage, "If you want something done right, do it yourself." Intimately involved in every detail of their business from its infancy, entrepreneurs sometimes don't realize that micromanagement is no longer required once the company reaches a certain stage of growth. Not only is it a waste of time, but this excessive hands-on management can also be a waste of valuable and expensive human resources.

"Delegate enough authority to get work done," advise consultants Jerre G. Lewis and Leslie D. Renn in their book, How to Start & Manage Your Own Business. "Allow your assistants to take initiative and keep the operation moving in your absence. Also, it's important to allow them to perform in their own style, rather than insisting that things be done exactly as you would do them. In other words, let others take care of the details."

When managing through others, it's essential to strike a balance between maintaining control while giving your managers the freedom to do their jobs. "You should not get into your managers' operations so closely that you are 'in their hair,' nor should you be so far removed that you lose control," Lewis and Renn maintain.

Part of your role also involves coaching your managers and keeping them as informed as you would be if doing their jobs.

"Make sure they get the facts they need for making decisions," say Lewis and Renn. "Ask questions to make sure they understand what you have told them. Delegation can only be effective when you have good communication."

Capture the Heart

It's not surprising that companies with a distinct competitive advantage in their marketplace have incredibly high levels of employee commitment. That commitment comes partially from an operating principle considered "too soft" by much of the business world. Jim Harris calls it capturing the hearts and minds of all your employees.

"Regardless of the endeavor, whether at work, home or play, excellence is only possible with an actively engaged heart," he asserts. "When something captures your heart, you are driven to succeed. Imagine attempting to accomplish anything important in your life when the activity does not engage your heart. Can you automatically give it 113 percent of your effort?

"Look behind any of your company's greatest accomplishments," he continues, "and you'll find that its driving force was not necessarily a brilliantly conceived strategy (although that helps) or a seamlessly executed plan. The driving force behind all great organizational achievements is the heartpower of the employees, their engaged passion for excellence."

Harris says that today's best managers capture their employees' hearts by following three strategies.

"Live a compelling vision. Tell your employees what the company stands for and where it is going." Your vision must be understandable, focused and, perhaps most importantly, wholehearted. Recalls Harris, "When Dr. Martin Luther King, Jr., spoke to 500,000 civil rights marchers, he did not say, 'I have a strategic plan today.' Instead, understanding the power of a compelling vision, he enthusiastically exclaimed, 'I have a dream.'"

The second strategy is to help employees find a balance between work and family.

"When companies neglect to help their employees better balance the demands of work with the need for a personal life, they risk burning out or even losing their best talent," Harris emphasizes. He quotes General Electric CEO Jack Walsh. "If someone tells me they're working 90-hour weeks, I tell them they're doing something terribly wrong."

Lastly, Harris urges managers to celebrate and have fun with their employees. "How can managers expect employees to fall in love with a company that is boring, stoic and staid?" he asks. Harris cites Ben and Jerry's Homemade Ice Cream and its "Yo, We want you to be our CEO" contest when recruiting a new leader as an example of a firm that knows how to have fun.

"To attract and retain today's best and brightest employees and to inspire excellence in them, great companies invigorate their workplaces with uplifting, fun-drenched activities," says Harris in summary. "Walt Disney once said, 'You can dream, create, design and build the most wonderful place in the world. But it requires people to make that dream a reality.'"


Judy Madrigal & Associates:
Managing by the Golden Rule

Judy Madrigal has never forgotten where she came from. The owner of the Northern California contract staffing company that bears her name, she started her career as a receptionist, trying to survive on $6 an hour.

"My management philosophy centers around the Golden Rule," Madrigal explains. "I always try to appreciate both sides of any situation and treat people as I would like to be treated. When I see an employee experiencing difficulties, I know that could just as readily have been me, and do all I can to help.

"Moreover," she continues, "I never tell anyone to do something I wouldn't do. The president of a company should not be too good to do anything. I answer phones, empty garbage cans if they are full - whatever task needs to be done."

Not to be confused with temporary staffing or employment agencies, Madrigal's company functions as a human resources department for small businesses. She purchased the firm in 1991 from the original owner who wanted to get out of the business.

"There are many rules and requirements an employer must know and contend with, such as labor laws, OSHA (Occupational and Safety Hazard Administration) regulations and what questions you can and cannot ask in a job interview. In addition, owners of small firms typically don't have the money to offer the same degree of benefits large corporations can afford. So, the 'star' employees often go to the bigger companies," contends Madrigal.

"We help small businesses compete in the job market. We hire, fire, take care of W2 forms - all the things that take time away from growing an operation. We also offer a terrific benefits package."

The package, in which she herself participates, is another reflection of Madrigal's Golden Rule management philosophy. "I firmly believe the person who purchases the package should have to use it," Madrigal emphasizes. "Often the company president has a much better package than the employees. I try to demonstrate to my staff in everything I do that we are all in this together."

Madrigal worked for her firm for 12 years - eight as vice president and account executive - before purchasing it. She has built successful relationships with her clients and strives to provide the full array of human resources services.

"We have a 24-hour answering service where the caller talks to a person, not voice mail," says Madrigal. "This way, if a manager is having a problem with an employee and wants to talk to us privately, the manager can call whenever it's most convenient.

"We also conduct performance evaluations, counseling and career motivation," she continues. "And we offer in-service training in client offices to help employees do their jobs better. Our goal is to completely eliminate staff turnover for our clients."

A committed advocate of equal employment opportunity, Madrigal has a complete lending library from which employees can borrow training tapes and other materials to improve their skills. And if a potential employee doesn't score high enough on skill tests, a company counselor indicates which areas need improvement and encourages the individual to come back and try again.

"When employees have problems," notes Madrigal, "we counsel them and give them every opportunity to keep their jobs. I don't believe in the disposable employee syndrome that seems to be sweeping society. In fact, I have a scrapbook of letters from people whose jobs we have saved."

Madrigal's Golden Rule philosophy is paying off handsomely. In the six years she has owned the company, business has quadrupled. She has 1,000 employees in the field and 10 in-house. And, she says with pride, she has never had to advertise.

"The management style I use with my staff sets the tone for our company culture," concludes Madrigal. "We give our clients much more than they expect. And as a result, no one compares with us in terms of the level of service provided."


Restoring the Glory of Madame Alexander Dolls

Like its surrounding neighborhood, the weathered six-story factory in New York City's Spanish Harlem has seen better days. Yet inside the worn facade, a team of designers, tailors, shoe cobblers and haberdashers lovingly fashion clothing and accessories by hand that are fit for kings and queens. This unlikely facility is not a back alley manufacturing shop for a famous couturier. Rather it is home to some of the world's most glamorous creatures: the miniature figures known as Madame Alexander dolls.

Named for their creator, Madame Beatrice Alexander Behrman, these exquisite dolls have captured the hearts of collectors of all ages and interests since they were born in 1928. Theirs is the story of a legendary line of merchandise that made a brilliant comeback after years of neglect and the dynamic woman whose mission has been to return the company to its former glory.

"Madame Alexander was the daughter of Russian Jewish immigrants," recalls Patty Lewis, the dedicated standard-bearer and company president. "Her father ran one of the first doll hospitals in New York City. After World War I ended, Madame Alexander noticed that while a lot of dolls were being sent to the hospital for repairs and refurbishment, no new dolls were coming from Europe, where most dolls were made at the time. She decided American children should have American dolls, and began calling the new line she was creating 'Madame Alexander' to give it an air of specialness."

The company fell on hard times after Madame Alexander turned it over to her grandson in 1985. He then sold it to attorneys in 1988, and by the time the operation was purchased by Kaizen Breakthrough Partnership in 1995, it had become a shadow of its former self.

"It was painfully obvious that the company had not been cared for since Madame Alexander ran it," Lewis relates. "The quality of the fabrics had slipped as had some of the detail work. No innovations or improvements had been implemented for quite some time, and the line still focused on classic dolls without adding anything more contemporary. My mission - as I saw it - was not to reinvent Madame Alexander's vision, but to invigorate and bring it into the 1990s."

Lewis' first step was to restore the quality in fabric and workmanship as well as the innovation and excitement that originally went into producing each doll. "We have extremely talented designers. They simply lacked inspiration and leadership."

Lewis worked with her staff to introduce couture fashion similar to that worn by models today. "Beautiful enough for women, but made for dolls," she says, summing up her credo. And to reach out to new audiences, Lewis entered into licensing agreements with Harley Davidson and Coca-Cola to produce boy and girl dolls dressed in 1950s motorcycle gear and a 1950s car-hop doll.

Her efforts weren't limited to the dolls themselves. A top priority was to reestablish trust between management and the workforce. Today, the entire management team spends time on the manufacturing floor, and employees are called associates because, as Lewis emphasizes, "that's exactly what they are." Associates work closely with the company's operations team to improve production efficiency while maintaining the dolls' hand-crafted quality.

"We want this to be a place our associates look forward to coming to every day," she asserts. "Part of establishing that environment is helping them to be more effective in their jobs. In addition to training, we offer literacy and English language classes."

Lewis has upheld Madame Alexander's tradition of hiring people from the neighborhood. Of the nearly 500 employees, a majority resides within the factory's zip code. Most have been with the company at least 15 years, and many belong to families that have worked for the firm for generations.

"This is a New York product and a New York company," notes Lewis. "Other people interested in buying Madame Alexander wanted to move it overseas or to the Southeast. Kaizen made a conscious decision to stay here, with this group of associates and in this facility.

"Madame Alexander Doll Company is rich with history," Lewis concludes. "We have a wonderful team of associates who know every detail of every product. It is they who have made the operation what Madame Alexander always dreamed it would be."



Excerpted with permission from Small Business Success magazine, Volume X, produced by Pacific Bell Directory in partnership with the U.S. Small Business Administration and the Partners for Small Business Excellence.