We all love stories about great leadership. Perhaps this is the reason CBS’s new reality series, “Undercover Boss” became an instant hit. Ever since its premier aired immediately after this year’s Super Bowl it has managed to stay near the top of the ratings list, capturing the attention of over 38 million viewers. While the success of the show is obvious, what is surprising is that all but one company that has been featured on the show has seen an increase in the value of its stock.
It’s no secret that executives have not been fairing well in the economic downturn. So, a program that reveals leaders with soft hearts; who have a sincere interest in the rank and file; and enough humility to do lower level work, is irresistible. The format for “Undercover Boss” involves chief executives and operating chiefs going undercover for one week to work with the rank and file, discovering hidden greatness as well as areas that desperately need improvement. In the end, workers are rewarded or chastised, and the boss declares the life changing impact of their experience.
Actually, our love for stories of bosses who are transformed by their relationships with employees is not new. In Charles Dicken’s “The Christmas Carol”, Ebenezer Scrooge is portrayed as an insensitive and demanding small business owner who doesn’t pay Bob Cratchitt, his clerk, very much and won’t even allow him access to warmth from a fire.
As Dicken’s story progresses, Scrooge meets three ghosts who help him see the error of his ways by guiding him through a series of visions from his past, present, and future. The visions have a profound impact on Scrooge. In fact, he is moved to tears.
The transformation of Scrooge is fascinating. Although he is rather stiff and unfeeling at first, he becomes humorous and likeable. By the end of the story, his heart is softer, he has a deeper appreciation for his employee, and is looking forward to a brighter future. Readers have no trouble believing that Scrooge’s future will be brighter now that he has found his humanity.
Viewers of “Undercover Boss” have a similar optimism about the future of the executives featured in the series. And, for the most part, they would be correct. Churchill Downs saw a 6.6% increase in the value of their stock. GSI Commerce saw a 3.1% increase. Chemed (Roto-Rooter) is up 1.8%. Shares of 1-800-Flowers gained nearly 15% prior to the airing of that episode.
Waste Management is the only featured public company whose shares have lagged behind the S&P 500 since its episode. However, traffic on their Web site has jumped 58%, the “become-a-customer” inquiries on the Website soared 256%, traffic to the Website’s careers page climbed 98% and inbound email traffic more than doubled.
Although the companies featured on “Undercover Boss” are large, small businesses can easily replicate what the CEOs are doing and reap similar benefits. What does the “Undercover Boss” phenomenon tell us? Employees long to have management acknowledge that their jobs are important, recognize their accomplishments, and care about them as individuals.
We like leaders with heart so much that we are willing to invest in them. And yet, almost everyone has at least one bad boss story. These bosses must not know that employees work a lot harder for a great boss. These bosses must not be too worried about turnover because employees don’t quit companies, they quit bosses.
So, how can you as a small business owner cash in on the “Undercover Boss” phenomenon? Start by asking yourself these top ten “Leadership With Heart” questions:
- Do I know what work needs to be performed in my company?
- Do I really know the people in my company who perform that work?
- Do I know which people in my company are performing well?
- Am I acknowledging and reinforcing their good performance?
- Do I know which people in my company are not doing a good job?
- Am I doing what I can to confront and correct their poor performance?
- Do I know what professional challenges my employees are facing?
- Am I doing what I can to help them overcome their professional challenges?
- Do I know what personal challenges my employees are facing?
- Am I doing what I can to help them overcome their personal challenges?
If you haven’t watched the new CBS reality series, “Undercover Boss” yet, you are missing a fascinating lesson in good business. Leaders with heart can be very good for the bottom line.
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If you would like to contact me, you can do so by visiting my LinkedIn page or emailing me at mike.clough@bestbizpractices.org.
Posted by: Mike Clough
