News from Quality Digest

Many changes that have taken place in the work environment during the last 15 years have brought the challenges and opportunities of leadership down from the pedestal of formal management to the individual employee--contributors with no positional authority, who are not designated as leaders but who seem to have leadership challenges presented to them almost on a daily basis.

This new grassroots model is rooted in behaviors that can be performed by anyone, regardless of position. Further, it addresses the everyday leadership challenges that spring up continuously in all organizations. According to the new book, Everyone a Leader: A Grassroots Model for the New Workplace, by Host Bergmann, Kathleen Hurson and Darlene Russ-Eft, all with AchieveGlobal, this new kind of leadership is ". best observed and most effective in one-on-one and small-group interactions."

Five important and pervasive changes have created new opportunities for leadership among nonsupervisory employees:

nIncreased competition and more demanding customers. Better, faster, cheaper, newer are the standards organizations must meet to be competitive today.

Loosening of formal organizational structures. Jobs have been left undefined rather than redefined in an effort to create flexible organizations that can meet the demands of the marketplace. In many cases, middle managers and frontline workers do not have the support or authority they need to act in environments rife with change.

Fewer, busier managers. In addition to reduced managerial ranks, there are so many cross-functional teams and offsite and outsourced activities, managers don't have nearly the knowledge of or control over clients they once had.

Predominance of the knowledge worker. Although knowledge workers tend to be self-managing and don't want or need daily supervision, they are not necessarily self-leading. They may need coaching to improve their performance or periodic updates to understand how their work fits into organizational objectives.

Growing focus on projects and teams. Projects present a raft of leadership challenges, such as project members from different departments, resources seldom under the direct control of a single manager, and reporting relationships that can present conflicts between project and departmental goals.

In addition, project teams and permanent teams have taken the place of other structures and can be hierarchical or self-managing. These new configurations present opportunities for leadership within teams, between teams and the rest of the organization, and between teams and the outside world.

What motivates an employee or middle manager to show leadership? According to the book's authors, people risk censure or backlash for the sake of taking action for a variety of reasons: they want to make their jobs and other people's jobs easier, they feel a strong sense of ownership, they need recognition or seek advancement, they want to make an impact, or sometimes it's simply the right thing to do.

Successful grassroots leaders tend to have a
greater awareness of the emotional component
of their work and make a more conscious effort to match their emotional state to the strategy or skill they're engaged in. This alignment between emotions and behavior helps prevent frustration and, therefore, burnout.

Grassroots leaders can harness and control their emotions by preparing in a variety of ways:

Venting. Complain to a caring person outside the workplace. Or, go somewhere private and just let all the frustration out.

Self-reflection. A little self-analysis of the situation and the response to it may shed light on the appropriate emotional response. Are skills or other resources in short supply? Is fatigue a block? Can the person effecting change be more patient or more confident?

Mental rehearsing. Anticipate meetings, interviews and other situations, and rehearse responses that display leadership behaviors.

Assume positive intent. Give people the benefit of the doubt in order to respond nonjudgmentally and keep a leadership point of view intact.

Fake it. Feelings produce behavior and vice versa. Act patiently, and patience happens.

Overlearn. Reach a higher-than-normal level of mastery of a challenging skill, so that it can be practiced even in a tough situation without effort.

Lighten the emotional load. Take steps to lighten the emotional burden of tough situations. For example, enlist the aid of a co-leader.

The old adage that "first impressions count" certainly seems to hold true in job interviews. A recent survey reveals that it takes 16 minutes on average for today's executives to determine whether a candidate may be a good match for a position.

Executives were asked, "How many minutes into an interview do you know Pitcher

whether or not a candidate is a fit for a job?" The mean response time was 16 minutes.

"Applicants must be able to present a summary of their qualifications in a concise, enthusiastic and poised manner, or they may lose their relatively short window of opportunity," says Max Messmer, chairman of Accountemps, which developed the survey. "During the initial minutes of an interview, managers will be assessing whether candidates should move to the next step in their hiring processes, which may include additional interviews and skills tests as well as having references verified."

The survey results underscore the importance of thorough preparation in advance of an interview, adds Messmer. "Individuals should be ready to answer questions that are likely to come up at the beginning of the meeting, such as, 'Tell me a little about yourself,' 'Why are you planning to leave your current position?' and 'What types of projects did you handle at your last job?' "

With overall U.S. assembly spending (including assembly equipment, materials and components) by original equipment manufacturers estimated to reach a robust $11 billion in 1999, U.S. spending for assembly equipment is expected to hit $2.5 billion, according to the recent U.S. Product Assembly Market survey, released by Reed Exhibition Companies' Assembly Group.

The Midwest continues to lead the nation in equipment spending, estimated to be $1.1 billion.

Manufacturers in the Northeast will account for 17 percent or $432 million of 1999 equipment spending.

Spending on assembly equipment should increase to 16 percent or $406 million for the Southeast in 1999.

Expenditures for assembly products in the Pacific states are expected to increase 150 percent in 1999.

The report indicates that spending is being driven by OEMs' needs to increase productivity, improve quality, reduce product lead time to market, accelerate new product launches and increase production capacity.

To receive a complimentary copy of the report, e-mail jmcgeachy@reedexpo.com or telephone (203) 840-5934.

Apprehension about the financial implications of the Year 2000 problem has escalated in the past year, according to a recent nationwide survey developed by RHI Management Resources. Almost two-thirds (61%) of chief financial officers polled indicate that they are concerned with the prospect of computer date conversion projects not being completed in time, up from 51 percent in 1998.

"CFOs are feeling increased pressure to finalize critical date conversion projects before Jan. 1, 2000," says Cecil Gregg, executive director of RHI Management Resources. "Many companies have begun testing their accounting and finance applications and database systems to assess compliance, ensure proper operation and resolve unforeseen problems while there is still time.

"Time isn't the only factor. Financial executives also recognize that the preparedness of business partners and suppliers can be as critical as having internal systems ready, since the entire supply chain can be adversely affected."

CFOs at firms with more than 500 employees had the greatest reservations about Year 2000 compliance, with 20 percent reporting that they are very concerned and 50 percent somewhat concerned. "Larger companies may be dealing with older systems as well as vast amounts of data, adding to the uncertainty that they will be Y2K-compliant in the few months that remain in 1999," says Gregg.

The survey, developed by RHI Management Resources of Menlo Park, California, includes responses from 1,400 CFOs from a stratified random sample of companies with more than 20 employees.

For more information about the survey and RHI Management Resources, visit www.rhimr.com .

CFOs were asked, "How concerned are you about the financial implications if the world's Year 2000 computer date conversion projects aren't completed in time?" Their responses:

	1999	1998
Very concerned	21%	17%
Somewhat concerned	41%	34%
Not too concerned	31%	28%
Not concerned at all	7%	21%

One of the world's largest producers of bananas recently earned ISO 14001 certification for its Guatemalan banana operation. Fresh Del Monte Produce Inc.'s Guatemalan banana operation received the country's first ISO 14001 certificate, a distinction that demonstrates Guatemala's and Del Monte's commitment to the environment.

Fresh Del Monte utilizes the ISO 14001 structure to guide the Guatemala site's environmental policy, drive business objectives and ensure continuous improvement. "We are extremely proud of what the company has accomplished in Guatemala, not only for achieving ISO 14001 certification, but also for the diligent work being performed by all to ensure the continuation of the recovery efforts from the devastation caused by Hurricane Mitch," says Mohammad Abu-Ghazaleh, chairman and CEO of Fresh Del Monte Produce. "We have proven our dedication to environmental consciousness as this marks Fresh Del Monte's third ISO award in less than six months. Earlier this year, Fresh Del Monte became the first pineapple operation in the world to be awarded ISO 14001 certification. Now our Guatemalan banana operation will enjoy the distinction of being the only ISO 14001-certified company in that country. This achievement exemplifies the company's commitment to Guatemala, to its employees and to the environment."

BVQI, a recognized leader in ISO 14001 certification, awarded Fresh Del Monte its ISO 14001 certificate. BVQI has certified more than 23,000 organizations in more than 70 countries to recognized international quality, environmental, social, and health and safety standards.

The results of a new study by Fleet Capital Corp. indicate that middle-market manufacturers expect the U.S. economy to remain healthy in 1999. A telephone poll of 300 chief financial officers reveals that the majority (85%) believe the nation's economy will expand or stay the same, and 75 percent expect revenues to grow.

"The expectation for a strong, healthy economy should benefit manufacturers in many sectors, particularly capital goods, cyclical industries and those whose results in 1998 were affected by downturns in emerging foreign markets," says Irwin Teich, Fleet's CEO.

Also, about half (51%) of finance officers expect labor costs per unit to increase. At the same time, 62 percent say they do not anticipate any product price increases.

"We see many manufacturers that will suffer margin compression due to higher operating costs and the inability to pass through price increases unless they are able to increase productivity and make operational improvements without incurring additional expenses," notes Teich.

Of the 74 percent of companies surveyed that sell to foreign markets, 60 percent anticipate an increase in international sales.

Most (86%) of all chief financial officers surveyed feel that the European Union's new euro will have no effect on foreign sales.

Although only 24 percent of the companies surveyed have completed their Y2K compliance programs, 61 percent have only a small amount of work to do.

Almost one-third of companies with sales between $75 million and $500 million expect to be involved in a merger of acquisition. Overall, 21 percent of those surveyed will engage in a merger of acquisition in 1999.

The majority of participants (78%) expect their cost of financing capital to stay the same or decrease.

The top five sources of funding for middle-market manufacturers are: bank financing (68%), internal funding (63%), leasing (31%), private equity (19%) and senior debt (10%).

"Despite the downturn in emerging markets in 1998 and the impact on both foreign expansion and exports, many manufacturers are taking a longer-term perspective, with the expectation of increasing international sales," explains Teich. "It seems most middle-market manufacturing finance managers feel the worst is over for now."

The South Carolina Region of the American Red Cross Blood Services has earned the distinction of being the first Red Cross region in the United States to earn ISO 9002 registration. Currently, there are only two other blood collection agencies in the United States that are ISO 9000-registered.

"We are honored to be recognized for our high standards by such an esteemed organization," says Carolyn Weisberg, CEO, American Red Cross Blood Services, South Carolina Region. "This further proves our commitment to provide quality service to citizens throughout South Carolina and Georgia."

Orion Registrar of Arvada, Colorado, awarded the Red Cross agency its ISO 9002 status. Orion is an independent, third-party registrar accredited by RvA.

The South Carolina Region of the American Red Cross Blood Services is a nonprofit blood collection center servicing more than 35 counties across two states. The facilities collect, process and distribute more than 120,000 pints of blood annually, and maintain the third-largest rare-blood depository in the Red Cross system.

Technological resources may give many companies a competitive edge, but a recent survey of chief financial officers suggests that businesses should also pay close attention to their human resources. Half of executives polled said that being focused on hiring good people and having solid leadership are the best methods for protecting against threats from rival firms.

The survey, developed by Robert Half International, includes responses from 1,400 CFOs from a stratified random sample of companies with more than 20 employees.

CFOs were asked, "Which one of the following will best protect companies from competitive threats in the next three years?" Their responses:

"The ability to adeptly build intellectual capital at every level of the organization is what distinguishes a great company from a good one," says Max Messmer, chairman and CEO of Robert Half International. "Keeping current with technology is critical, but without proven hiring and staffing practices, businesses cannot fully take advantage of state-of-the-art tools or implement strategic initiatives effectively."

Greater hiring expertise allows managers to identify candidates with the potential for future leadership roles, which is also integral to an organization's competitive prospects, notes Messmer.

Anbar Electronic Intelligence, Europe's leading online abstract publisher and analyst, recently awarded Quality Digest its prestigious Anbar Golden Page Award for Most Readable Content.

Anbar presents the Golden Page Awards annually to those few outstanding management periodicals that consistently deliver excellent articles. Awards are made for: best research implications, best practical implications, most original content and most readable content across all major management disciplines. To be accepted onto the Anbar Accredited List is in itself a significant achievement. To then emerge from rigorous review as best in class is a major accolade.