After a disappointing absence (err… unexpected repeat last week – presumably due to the Academy Awards) Undercover Boss resumed this week for the fifth episode. This week the series profiled Churchill Downs Inc. executive William (Bill) Carstanjen.

Churchill Downs Inc., headquartered in Louisville, Ky., is a $500 million dollar company that owns and operates world-renowned horse racing venues throughout the United States. The Company’s four racetracks in Florida, Illinois, Kentucky and Louisiana host many of North America’s most prestigious races, including the Kentucky Derby and Kentucky Oaks, Arlington Million, Princess Rooney Handicap and Louisiana Derby.

The 41 year old COO, has been with the parent company of North America’s premier race for Thoroughbreds since 2005, having served as Executive Vice President and Chief Development Officer and General Counsel previously. Prior to joining Churchill Downs he worked for GE. Churchill Downs (the corporation) has experienced it’s fair share of ups-and-downs since incorporating in 1942, and it wasn’t until former President and CEO Thomas H. Meeker led it through a series of transformative steps that breathed new life into the struggling company.

A few quick facts:

The track is named for John and Henry Churchill, who leased 80 acres (320,000 m²) of land to their nephew, Colonel Meriwether Lewis Clark, Jr. (grandson of explorer William Clark).

Churchill Downs was designated a National Historic Landmark in 1986.

In April 2002, Churchill Downs Incorporated established the Green Pastures Program in partnership with the Thoroughbred Retirement Foundation, a leading American racehorse rescue and adoption organization.

On September 29, 2006, Churchill Downs became the first horse track to host a Rolling Stones concert.

On Friday, June 19, 2009, Churchill Downs hosted its first-ever night race.

Lessons Learned:

1. It’s hard to be an outsider, especially in a company steeped in tradition. If you are, you need to work hard to learn both the business and the culture; especially if you hope to affect meaningful and lasting change.
2. Word of mouth – especially from key employees – can be the greatest asset OR the greatest detrminent that a company has. You want, no you need, your employees to be your most passionate spokespeople.
3. Sometimes loving what you do and being passionate isn’t enough.
4. The most mundane or seemingly simple jobs (e.g. the bugler), aren’t necessarily so. Sometimes it takes years and years of practice/experience, other times people are just good at what they do. Regardless, don’t make an assumption simply based on appearance.
5. Being able to fail spectacularly can be liberating.
6. Always try to find all the people that make an operation go, not just the people that are visible. For every superstar in the spotlight, there are plenty more behind the scenes (or the back stretch) that will never get the recognition they deserve.
7. Need plenty of people that understand both sides of a business – the public facing side and the behind the scenes – those unique individuals are the heart and soul of your organization.
8. Don’t get blinded by what’s right in front of your eyes. Every now and again you need to pull back, even just a little, to see the whole picture.
9. Business is personal. Don’t be afraid of getting past spreadsheets and presentations and actually addressing situations head-on. The most important thing in life is personal interaction…take advantage of it.

As I was reminded by a few good friends the token displays of recognition and acts of contrition really don’t amount to anything meaningful. Too few individuals get their stories heard and in return get something meaningful for them personally.  However, what I most like about the show is the personal transformation that each executive goes through. Just the willingness to put themselves on the line is commendable. However, if even a small change takes place, it’s a worthwhile exercise.

I learned about another executive, and for that matter another business, that I would have never looked into and learned a lot from it. I’d still like to see follow-up on the stories to track down the profiled employees and also see what has changed since their executives have gone undercover. That, not withstanding, I remain a fan of the show…

Posted via web from Dave Sabol

Week 4 of Undercover Boss featured Dave Rife, co-owner and Executive Board Member of America’s oldest hamburger chain: White Castle. White Castle, headquartered in Columbus, OH, this family owned and known for small square burgers – sometimes referred to, and today trademarked as “Slyders” – the company has a number of firsts: the first restaurant to sell a million hamburgers, the first to sell a billion hamburgers, and the first to sell frozen fast food.

Core values: integrity, honesty, job security.

Lesson 1: You may think that providing a lot of managerial oversight for your employee’s is a good for them and the company; it isn’t always so. With the lack of a clear (and communicated) chain of command, your employee’s don’t know who to listen to and leadership doesn’t know who to hold accountable. To bring order to chaos, make the leadership structure, clear and simple. Adding additional layers of management doesn’t always equal clarity or rigor, it can create confusion and lack of accountability.

Fast Fact: White Castle opens 10 to 12 new restaurants per year.

Lesson 2: Just because a job looks easy doesn’t necessarily make it so. In most cases it looks easy because the people doing the job either has a lot of experience and/or loves what he/she does. Regardless, these are the people you want to listen to, learn from and retain. They are the hardest to replace and the individuals who help make your organzation what it is today. Looks can be deceiving.

Lesson 3: It’s ok to make mistakes. Having high quality standards is an essential quality of all successful organizations. Having high quality standards without the understanding of and appreciation for the power of mistakes is an opporunity lost. Strive for and encourage perfection, but appreciate and celebrate mistakes. There is a lot of value in getting it wrong.

Fast Fact: White Castle goes through 50,000 lbs of flour per day making the buns for their burgers.

Lesson 4: People don’t always choose their jobs out of passion, sometimes it’s out of necessity. Acknowledge that fact and create an environment that enables them and allows them to succeed. Provide employees with opportunities for advancement. Look for talent in the younger members of your team. Inspiration is everywhere, especially in the younger members of your team

Fast Fact: Their production facility makes 17k burgers per shift.

Lesson 5: Don’t forget where you came from. Just because you are management doesn’t make you exempt from working. Even if you are only in it for yourself it would benefit you to do right by/for your team. They are your biggest asset and your most experience sherpa in guiding you to the top of our career. Always listen to your employee’s for ways to improve the company. Those who have been with the company a while know what works, what is broken and how to make it better.

Lesson 6: It’s really easy to sit behind a desk and make decisions on numbers…another totally to consider the people behind the numbers. Get out from the environment that you are comfortable with and experience something different, from a different perspective. You – and your organization, department, team – will be the better for it.

Lesson 7: While not an overt part of the show I did notice that the bonuses / awards were low in comparison to the past 3 shows. I think that it’s especially worth noting that the size of the award, scholarship, bonus, etc. isn’t nearly as important as the recognition that it supports. Just shining a spotlight on somebody who never had the attention provides them with a nice boost. Be sincere, be honest and do what you can. The amount really doesn’t matter.

It’s been another good week for Undercover Boss. Dave Rife was a smart, genuine and compassionate leader and the company is an American icon. I have no doubt that the company will prosper under his leadership. I continue to learn, grown and gain plenty of insights from the show. Hopefully through my synthesis, you have to. Share your questions, comments and feedback in the comments.

Posted via web from Dave Sabol

Weeks 1 and 2 of Undercover Boss were pretty informative, enlightening and inspirational, so I am going to continue this series of observations and synthesis of the lessons I am learning from the show. This week featured Joe DePinto, President and CEO of the convenience store giant 7-Eleven. There are very few brands, especially retail chains that have the global reach (36,000 stores worldwide) and recognition than 7-11. They pretty much defined what we consider to be the modern convenience store.

1. Every employee has a story to tell. When is the last time you stopped and asked them to tell you about it. Knowing their stories helps you know how to motivate and manage them more effectively. It’s such a small thing, but it’s also so important. That’s a recurring theme throughout the past 3 episodes, but one that is worth repeating. The greatest asset that your company/organization has are its employees!
2. Consistency is key. If you have programs that are implemented across the organization make sure that they are done in a very consistent manner. Programs are normally created for a reason…make sure everyone across the organization knows what the reason is and why the role that they play is important. Anything less will ensure that the program will fail.
3. Opportunity to grow and advance is a key recruitment and retention tool. The best thing you can do for the health of the organization is to create (and communicate) a well-definited path for advancement. You can’t sell the idea of careers without having a career path!
4. Your customers impression of your organization isn’t based on some grand brand promise or fancy marketing materials, it’s based on where and how they interact with you. Corporate HQ can be the pinnacle of organization and efficiency, but if where the customer interacts with your company isn’t, the impression that they will have will be less than favorable.
5. Make things fun. This was an afterthought (seeing Joe’s speech) but I did notice it at the end. If people are encouraged/allowed to have fun at work it makes the environment a lot more enjoyable for all.

This weeks episode wasn’t as inspirational as the past two. Either that or I am constantly raising the bar and expect more and more from the show. Regardless, I’m still a fan of the show and I can again reiterate what I have said for the past few weeks. I enjoy the show because it continues to expose me to leaders who really do care about their company’s and are willing to do whatever it takes to help the organization succeed and grow. In the end that benefits everyone.

Posted via web from Dave Sabol