The purpose of this blog is to be a resource for HR and labor relations professionals. It will give you an opportunity to become familiar with F&H Solutions Group, stay abreast of changes related to the human capital industry and develop a better understanding of the attitudes of employees and supervisors. Our blog posts are designed to be thought provoking, educational, and interactive. Things are changing very rapidly in this industry and we hope you can rely on us to be a source of information. We look forward to your comments and hope you find our content helpful. Please feel free to pass the blog link on to others who might be interested.

"UNCOVERING THE UNDERCOVER BOSS" - Episode 7, Herschend Family Entertainment

Is every Herschend Family Entertainment employee a great performer? It appears that Joel Manby, the CEO of this $400 million business, would say, “yes” based on his undercover experience. He was very thankful for this “incredible week” and considered it the best experience of his career, but if a viewer was looking for real lessons in leadership, they were few and far between.

Each employee on the show was a top performer, which for a reality show seemed to be a bit unreal. Each of these employees had personal issues, which is real life, but besides using these issues as a way to pull at the emotional strings of the viewer, very little was learned about actual leadership. Joel didn’t learn much about what his Company needed to do to address the problem of declining attendance at his 22 theme park properties, and if he can’t fix the declining revenue problem, employees are going to be very unhappy when they start to lose their jobs.

If Joel, acting as John Briggs a new recruit, wanted to get a real sense of how his employees felt about the Company and what corporate could do to make it better, he could have asked questions such as:


  • What’s good about this Company?

  • What can be done to improve attendance?

  • What are the obstacles you and other employees face that make your job more difficult than it should be?

  • How can employees provide greater service to customers?

  • How are the communications in the Company?

  • How do people get a pay raise or promotion? Is it based on performance, seniority or perceived favoritism?

  • Does the Company have sound policies and are they administered fairly?

  • What kind of shape is the equipment in and do you have the right tools or supplies?

  • How is your supervisor to work for?

I believe answers to those questions would not only make good TV, but it would also provide Joel with valuable information which he could use to benefit the business, all employees and not just the few who were on TV.

“Uncovering the Undercover Boss” is written by Richard Reinhardt, Vice President of F&H Solutions Group LLC. You may contact Richard by email at rreinhardt@fhsolutionsgroup.com or by phone at 901.291.1546.

"UNCOVERING THE UNDERCOVER BOSS" - Episode 6, GSI Commerce

In this week’s episode, Michael Rubin, Founder and CEO of GSI Commerce, went undercover as Gary Rodgers, a seasonal employee. GSI Commerce provides e-commerce and interactive marketing services for retailers. The Company has 5,000 regular employees but during the holiday peak season the numbers increase to 10,000.

His first day as a seasonal employee was spent working at the Company’s fulfillment center loading a trailer with Rochelle, another seasonal employee, who had three weeks’ experience. Matt was the floor supervisor and his only guidance was to tell both employees to stack the boxes “high and tight.” Rochelle worked quickly but the two of them did a terrible job of loading a trailer. The boxes were in disarray and some were falling as they were being loaded. The Company’s failure to train either employee on how to load and stack boxes could have been disastrous. Either employee could have sustained an injury, the unbalanced load could have affected the driver’s ability to properly steer the vehicle, and it most certainly would have resulted in crushing a few boxes.

Nothing was ever mentioned about the need for training or the lack of supervision. At the end of the show, Michael rewarded Rochelle for being a hard worker, which she was, but the supervisor and all of management failed.

The lesson learned is that most jobs, in this case loading a trailer, require training and nothing should be taken for granted. This is a job that is not only physically demanding but the consequences of loading a trailer poorly will affect the employees, the truck driver, others on the highway and the customers. Michael only recognized that it was a physically exhausting job. He did not even think about the financial repercussions of not properly training employees –workers compensation claims, damaged goods, and a potentially dangerous vehicle on the highway. Could Michael have been pennywise and pound foolish for not spending money on properly training employees?

Michael’s other major experience occurred at the Company’s call center in Florida. He assisted operators who receive calls from disgruntled customers. One of the operators, Danielle, had an extremely poor attitude. She explained to Michael that you had to show the customer who was the boss. Danielle demonstrated this in dealing with a customer who was dissatisfied with the merchandise received in a crushed box. Danielle told the customer that she could not receive $50 credit immediately, because the system would not allow it to happen. The customer did not accept Danielle’s answer and Michael was so mad at Danielle that he almost blew his cover. He thought that she was not satisfying the customer and he would have fired her on the spot if the cameras were not present.

There are several problems with this situation and they don’t only center on Danielle. First, based on what little we know, Danielle was a bad hire as her personality was a poor fit for the job. Second, what kind of training had she received? At the end of the show we find that she was only provided with two days of customer service training. In a customer oriented position, we doubt that this was enough to handle calls from disgruntled customers, which are the most challenging. Third, as is often the case, the system designed to fix the problem, was, in fact, the major cause of the problem. It prevented Danielle from immediately satisfying the customer. Fourth, Michael wanted to fire her on the spot. Instead of hearing her side of the story, understanding the system’s short comings or evaluating the training process, he was ready to attack the person. A good manager should never fire a person on the spot. Before any discipline occurs he should have invested what led to this serious failure in performance.

This episode concludes, as have the others, with the CEO “taking care” of the individuals with whom he came in contact. Cameron, a warehouse picker, was promoted because Michael thought he would be a good supervisor. Adam, a call center employee, was given $10,000 so that he could have a nice wedding. Shannon, a line processor, was given $5,000 for the community football league. Is Michael’s way of fixing problems, with money, really the right way to motivate a work force? What if you were an employee of Michael’s company, working as hard as possible, and you found out on television that Michael rewarded a few select employees with cash? How would you feel?

These were all very nice gestures, but how does Michael’s actions affect the other employees in the organization? Of the 10,000 other great regular and seasonal employees many of them have needs or desires, but they will not receive similar rewards. This type of favoritism from the CEO causes far more organizational problems than it is worth. A sincere thank you from the CEO is better for the overall organizational well being than choosing a few lucky employees who not only benefit from celebrity status but also receive money and/or promotions.

“Uncovering the Undercover Boss” is written by Richard Reinhardt, Vice President of F&H Solutions Group LLC. You may contact Richard by email at rreinhardt@fhsolutionsgroup.com or by phone at 901.291.1546.

"UNCOVERING THE UNDERCOVER BOSS" - Episode 5, Churchill Downs

Who doesn’t think running Churchill Downs, the famed locale for the Kentucky Derby, wouldn’t be fun?

Bill Carstanjen is the COO of Churchill Downs, a $500 million racing and gaming Company based in Louisville, Kentucky and the home of the Kentucky Derby. Bill went undercover as an entry level employee by the name of Billy Johns.

As COO, Bill says he spends much of his time, “looking at the numbers, spreadsheets, and PowerPoint presentations.” Halfway through this episode he admits to having lost sight of the fact that this is a “people business.” This sounds all too familiar because in each episode the “undercover boss” recognizes the same shortcoming. Clearly, this is a very common problem among companies, both large and small, and across virtually all industries.

Bill concludes the episode with comments such as . . . “I wouldn’t trade this experience for anything.” “We are losing a connection with our employees.” “Executives have lost sight of the need to talk to and show that we care about our employees.” Why do we hear the same refrain over and over again from corporate executives?

What we need to figure out is how a company keeps this from happening? What will it take until executives understand that without employees, it is hard to have a successful business?

Rest assured, top executives can not and should not resolve this problem by themselves. However, they must set the tone and expect, no, demand that the rest of management make sure employees know the company cares about them as people. For instance, when I am out meeting clients, I ask supervisors to identify their best performers, but when I ask them any questions about the employee as individuals, they are clueless. It is sad that a supervisor can spend forty (40) hours a week with their “best” employee and not know the people who report to them.

It is so easy to learn about the people you work with. At a minimum, supervisors should know the following about each of their employees:

· The spouse’s name, if married;
· The children’s names, if they have kids;
· Interests outside of work;
· The name of their friends at work;
· Who they eat lunch with; and
· Their birthday.

Other items can be added to the list without the supervisor getting involved in their personal lives. Top management may not know this information, but if the Company philosophy embraces the fact that people are important, then the employee’s immediate supervisor must show he or she sincerely cares.

The point is, if you care about your employees as people, they will care about you as an employer.

“Uncovering the Undercover Boss” is written by Richard Reinhardt, Vice President of F&H Solutions Group LLC. You may contact Richard by email at rreinhardt@fhsolutionsgroup.com or by phone at 901.291.1546.

"UNCOVERING THE UNDERCOVER BOSS" - The Repeat

This week, CBS chose to replay the third episode of Undercover Boss, featuring the CEO of 7-Eleven. This was probably done because the viewers wanted to see:

A. Bad Boys II on NBC
B. Family Guy on FOX
C. The 82nd Academy Awards on ABC
D. The CEO of 7-Eleven mess up making coffee

The answer is probably "C," but the lessons learned from this "reality" show are twofold:

1. Recognition -- Recognize people for being the best.
2. Gratitude -- Thank everyone for doing a great job.

That's what you saw and heard on the Academy Awards. Are you and your managers providing recognition and showing gratitude to the front line employees within your company? We hope so, but the results of our Employee Opinion Surveys tell us something different. We ask, "Are you told when you do a good job?" and often employees respond very negatively.

Showing your appreciation costs you nothing and to those on the receiving end it can be like receiving the Academy Award.

“Uncovering the Undercover Boss” is written by Richard Reinhardt, Vice President of F&H Solutions Group LLC. You may contact Richard by email at rreinhardt@fhsolutionsgroup.com or by phone at 901.291.1546.

"UNCOVERING THE UNDERCOVER BOSS" Episode 4, White Castle

Dave Rife is one of the owners of White Castle, the company best known for introducing fast food hamburgers to the masses. It is, in fact, the oldest fast food company in the U.S. This family business was started by Dave’s grandfather and is headquartered in Columbus, Ohio. The business began 88 years ago and has 421 restaurants in the U.S.

Dave Rife went undercover as an entry level employee by the name of David Allen. It was quite an eye-opening experience for Dave.

In this episode, there were two examples of how new employee training is not helping the employee, the Company or the customer. The first was where Dave was one of 70 other employees and managers at a new store opening. The situation was chaotic, the employees were receiving poor training, and the managers were wasting time while providing conflicting advice, which means that the customer must have suffered. The second example took place at a White Castle bakery. Here Dave continually asked his production supervisor, “What am I doing wrong?” as he proceeded to destroy 4800 buns in the packing machine. He never received much help from his supervisor or anyone else.

Too often employees are trained by the “sink or swim” method. White Castle has a detailed procedures manual and Dave, as an owner, was interested in improving the operational process of the Company. However, it appears the Company needs to do a better job of understanding the realities of operations and translating them into an effective training process.

So what did we learn from this experience? A quality new employee training process conveys to employees that you want them to succeed. It also sends the message that it is important to do the job right in order to give the customer a great experience. Furthermore, it helps achieve consistency in the product or service whether delivered by an employee who is on the job for one week or one decade. This lesson is critical to any customer service job, whether it is serving fast food or the finest culinary.

Another part of the episode was at the White Castle frozen food factory where Dave loaded cheeseburgers on a production line with other employees. One of his co-workers, Vicki, commented that the operation ran smoother and the quality was better eight years ago. She attributes the decline to the fact that the supervisor is not as involved as she once was. In this case, Brenda, the supervisor, was not involved and spent her time in the break room while Dave, Vicki and the others struggled to run production.

At the end of the show, after Dave revealed himself to Vicki and Brenda, he asked the employee, what do you look for in a good supervisor? Her answer was one that I have heard numerous times from employees. They want their supervisor to provide help when needed. Employees resent it when their immediate supervisor stays in the office, or as Brenda did, sat in the break room while employees struggled. A front line supervisor is “the Company” and they must demonstrate that they care and that they know what is going on.

In this particular situation, I do wonder where Brenda’s supervisor was during this time. Brenda’s job title was assistant supervisor so you would think that her supervisor or a manager would expect her to help the employees. If I were Dave I would be as concerned about what the members of middle management are focusing on within this plant, rather than only expecting Brenda to improve her supervisory abilities.

One of the things that makes “Undercover Boss” such a great program is that management experiences a reawakening to the fact that most employees take pride in their work, want to do a good job, and that they really care about what they do. One example was Joe, an excellent multi-tasking order taker who also dealt with customers in the most pleasant and efficient manner.

Joe is the result of a good selection process which brought the right person to the right job. Once in the job he must have received good training and supervision. As Dave said, “the Company needs a lot more people like Joe,” and every Company can attract and retain “Joe’s” with the right employee relations culture, management systems and supervisory skills.

At the end of this episode and the three preceding ones each of the employees discovers that members of top management actually care about their employees. This comes as a surprise to employees and yet it should not. Conversely, top management discovers how much employees care about their jobs and the impact their work life has on their families. This comes as a surprise to each undercover boss and yet it should not. That’s because we are all people with many of the same needs and concerns.

“Uncovering the Undercover Boss” is written by Richard Reinhardt, Vice President of F&H Solutions Group LLC. You may contact Richard by email at rreinhardt@fhsolutionsgroup.com or by phone at 901.291.1546.