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It's All in the Details

2012-10-15 12:23:57

How do you build morale and a sense of corporate responsibility? In

surprisingly small ways.

Managing People

How do you build morale and dedication? In surprisingly small ways.

Standing in the kitchen at Eze Castle Software, CEO Sean McLaughlin watches as

one of his programmers sets milk and cookies on a table. It's 2:30 on a

Wednesday afternoon. "Hang on, Parvathy," McLaughlin says to the employee as he

opens the refrigerator door and pulls out an apple pie. "Put this out, too."

When Parvathy is done in the kitchen, she flips some switches, and the lights

flicker all over the fifth floor. Almost instantly, programmers leave their

cubicles and make a beeline for the kitchen.

Then Parvathy jogs up a staircase and flashes the lights on the sixth floor.

Account managers, salespeople, and assorted techies come downstairs and join

their colleagues in the kitchen. When they arrive, McLaughlin is at the center

of the steadily building crowd, dishing out the pie. Around him conversations

spring up between colleagues who work in different departments. The topics

range from work to social life to politics. Ten minutes later the lights flash

again and it's back to work for the 90 employees in the Boston office of Eze.

What's so remarkable about the staff of a developer of securities-trading

software with $13 million in revenues taking daily milk-and-cookies breaks? Not

much -- until you consider that the practice is part of a cultural shift

engineered by the CEO, a shift that has profoundly changed the way he and his

employees relate to one another. Perhaps more significant, the changes have

affected how employees deal with the myriad little details that keep the

six-year-old company grounded.

Eze's transformation began last year, when McLaughlin realized to his chagrin

that his once small and collegial company had -- because of accelerated growth

-- begun acting like a large corporation. His employees no longer knew one

another, and he himself was increasingly vague about who some of the new faces

were. "In the early days I could get to know everyone," says McLaughlin.

However, the CEO was most annoyed by the fact that his employees -- both old

and new -- were beginning to behave with large-company sloppiness rather than

with start-up frugality. "Back when we were small, if someone sent a FedEx, we

all knew how much that was costing the company," McLaughlin says. He recalls

noticing that things were changing when one employee approved paying a

contractor $100 a month to water the company's five plants. Then there were

rising charges from the company's Internet service provider because of

excessive traffic on the corporate T1 line. The cause? Employees were

downloading MP3 files to listen to music during the workday. It frustrated

McLaughlin that employees weren't taking responsibility for their actions and

for the ways in which those actions affected the company's bottom line.

But last summer two things happened that spurred McLaughlin to make some

changes.

First, the Boston office lost both of its administrative assistants. One

assistant quit and the other left a few weeks later. The two had stocked the

supply room, sorted the mail, and welcomed visitors. The dual departures

wreaked havoc. "The kitchen was out of milk, we didn't have any pens in the

supply cabinet, the reception area looked like crap," McLaughlin says.

Then came the World Trade Center attacks. Though McLaughlin had long been

brooding on how to reverse Eze's fat-cat habits, he had yet to act. He says

that 9-11, and the "what are my priorities" thinking it engendered, "created an

environment where it was easy for me to initiate a change."

The change he had in mind was inspired by a visit to his daughter's

kindergarten class. There he saw how the teacher divided the cleanup tasks

among the children by posting a rotating "chore wheel." McLaughlin thought the

wheel was just the thing to clean up the mess and teach his employees a little

corporate responsibility. But he also wanted to institute something that would

help improve camaraderie. That's where another kindergarten institution, the

milk-and-cookies breaks, came in. "I wanted to build relationships among the

employees, to make them feel more company morale," he says.

Rather than posting an actual wheel in the office, McLaughlin had chief

operating officer Tom Gavin post the tasks -- and the names of the employees

who were responsible for them -- on the company intranet and on a board in the

kitchen. There are eight tasks in all: stocking the kitchen with food and

drinks, cleaning and organizing the dishes, maintaining the supply closet,

sorting and distributing the mail, tidying the kitchen, overseeing the

reception area, arranging and setting up the snack breaks, and acting as

ombudsperson. Each employee (plus a backup) is assigned a particular task for a

week. Any disputes or questions go to the ombudsperson, who also handles

miscellaneous tasks, such as changing lightbulbs and fixing the printer.

In explaining the system to his crew, McLaughlin faced an uphill battle. Many

employees were already putting in 12-hour days. "Everyone here is so driven, so

consumed with what they do," says Kristine O'Brien, a marketing-department

staffer. "My first reaction was, 'I have to do all this stuff plus the dishes?"

To gain buy-in, McLaughlin himself did kitchen cleanup during the first week.

Gavin took supply-closet duty. McLaughlin then announced that of the $100,000

he saved in salaries and benefits by not replacing either of the administrative

assistants, $20,000 would go to the employees. A portion of the money would go

to the food fund. Another portion would finance the activities of two

committees to be staffed by volunteers: one devoted to internal culture and the

other to community service.

When he first gathered the employees together to explain the chore system,

McLaughlin told them: "There's not one person here, including myself, who

doesn't spend 20 to 30 minutes a day messing around on the Internet. Just give

us back half that time every few months." Sure enough, employees found that the

tasks were welcome breaks that took fewer than 15 minutes a day. And dividing

eight tasks among 90 employees meant that each person had only one assignment

every three months.

Results came quickly. Programmer Matt Taylor, the first ombudsperson, suddenly

became the name on everyone's lips. He requested a replacement for the

company's outdated elevator certificate and changed lightbulbs. "People came

looking for me who normally would never have come to find me," he says. The

assignment system, it turned out, was great for what business-school professors

call "team building." O'Brien built a rapport with Amish Patel in IT because he

served as her backup one week on milk-and-cookies duty. Now they both have one

more person to talk to each day at 2:30.

Eze's spending habits have also improved. The electric bill, which had

skyrocketed to $4,000 a month, is down to $1,000, mainly because employees were

reminded that their actions, no matter how small -- including turning off

computers and lights when they left for the night -- could have a profound

impact on company expenses. And the supply cabinet is back in order.

The two committees, for their part, have already fostered a sense of community.

The internal-culture group is considering turning Eze's large fourth-floor

storage area into a weight room or a band practice area. Meanwhile, two

programmers who are amateur photographers dipped into the group's funds to

frame some of their work. Today the pictures are displayed on Eze's sixth

floor. Not long ago the community-service committee conducted a food drive for

Boston's homeless shelters. The committee persuaded Gavin to match every item

it collected, can for can.

Visitors to Eze's headquarters will notice that the reception area features an

empty desk where one of the administrative assistants used to sit. On the wall

behind the desk hangs an American flag. Taken together, the flag and the empty

desk symbolize the state of the nation to a tee. But they also symbolize the

state of a company where, through tough times, employees have gained a newfound

feeling of corporate citizenship.