The Naked Interview

The next time you enter the interview arena– as a hiring manager or candidate– you might want to try getting naked first. OK, not in the literal sense but as described in the business bestseller “Getting Naked”, by Patrick Lencioni. Lencioni’s book addresses the three things that tend to sabotage client loyalty:

1. Fear of losing the business
2. Fear of being embarrassed
3. Fear of looking inferior

The solution: using transparency and authenticity as the foundation for consulting or selling environment– or, as Lencioni says "getting naked". No more posing, posturing or saying “the right things” in order to make the sale. His recommendation is to focus on understanding a client’s needs, helping them find solutions and speaking the truth – even when it might put the relationship at risk.

The book affirmed something we’ve felt is wrong with the interview methods many companies rely on. See if this sounds familiar:

• A candidate is invited to interview with a company. Other than knowing the position to be filled and essential requirements of the job, nothing more is shared in advance. The candidate is expected to enter the interview arena “blind,” hoping for the best and speculating on what might be asked.
• The interview itself is largely a pop-quiz process with the company representative asking the questions, the candidate answering.
• The candidate leaves the interview clueless on how well he/she might fit the position.
• On the way home, the candidate invariably thinks of answers – if only they'd had more time to think about it.

That last point is especially true of behavioral interviews, where candidates face questions beginning with “Tell me about a time when...” and, for whatever reasons, none of the best answers spring to mind. Too much is left to spontaneous discovery. As a result, both parties potentially lose: candidates fail to share their best experiences and companies miss an opportunity to learn about the candidate.

Our solution is contrary to most interview formats. Borrowing from Lencioni’s theme, we call it the “Naked Interview.” It’s purpose is to conduct the interview in a more transparent manner. No pop quizzes. No trick questions. No trying to see how candidates react under pressure situations. In fact, we suggest giving candidates an outline of the interview in advance, including the top two or three objectives for this position. Here’s how it might play out...

The Naked Interview

Acme Manufacturing is interviewing candidates for a VP Sales for their East Coast Region. The the top objectives for the new RVP Sales in his/her first year of employment:

• Help select and implement a new CRM program.
• Identify and assess expansion into three new markets.
• Assess the abilities of the incumbent sales team and determine if and where changes should be made.

Dan Smith, a Regional Sales Manager with another company, is one of the candidates being considered. A few days before the interview Dan receives this call:

“Dan, this is Bill Jones at Acme Manufacturing. We’re looking forward to meeting with you and want to give you a heads-up on some key things we want to discuss our time together. Besides the typical sales management duties, we have three overriding objectives we need this person to accomplish in his/her first year in the role:

1. The first involves CRM programs. We want to spend some time talking about your experience with CRM programs, what’s worked and not worked, etc.

2. Second, we want to investigate expanding our services into some new markets. So, any experience you have with identifying new markets. assessing their potential and supervising the start up operations will be of interest to us.

3. Third, we’re not sure if our sales team needs upgrading or simply better training. Therefore, we’ll want gain a solid understanding of your experience in terms of hiring, training and assessing sales teams.

4. Last, I want to reserve some time to answer questions you might have. Give some thought to that and send me your questions in advance of our meeting. I want to make sure I’m prepared to answer them thoroughly.”

Can you see how this strategy might reduce stress on both sides of the interview table? The candidate enters the interview arena looking forward to the visit, not anxious. And, the hiring manager has a much better opportunity to understand the candidate's experience as it pertains to their key objectives.

Traditionalists might say this gives the candidate too much information on the front end, raising the potential for researched or canned answers. However, since we’re basing the discussion on “real time” experience... i.e. the candidate’s past experiences... it is consistent with behavioral interviewing practices. And, drilling down on each topic will ferret out puffed-up answers. Look at the number of questions we can spin the CRM discussion topic alone:

• Was the program in place when you started or implemented afterwards?
• If after, were you part of the selection or design team? Walk us through that process. How long did it take to implement? What were the challenges?
• Is it better to buy an off-the-shelf program or develop from scratch, and why?
• What impact did having a CRM program make? How were you able to quantify the value?

Let’s face it, ask enough questions about any single topic and the truth will rise to the surface soon enough. A candidate’s direct experience and knowledge will become readily apparent.

Appropriate for Candidates, too!

Candidates can steer this process too, although to a lesser degree. If you find yourself headed to an interview, ask the hiring manager to describe the top two or three objectives for the new hire in the first year of employment. Then, be prepared to make comparisons to your own experience and how it speaks to those objectives. Or, ask what he/she most wants to learn about you in your time together. Either way, this will go a long way to enhance the interview experience for both parties.

Market Update- May 2010

Tell the Troops: The Battle's Not Over

Had an interesting discussion with a Division President of a high volume, national builder. One of his employees recently requested a raise and the Division President was trying to determine market rates for her position. In the course of our discussion one thing was clear: his team had been selling, building and closing lots of homes this year, due in part to the (now expired) homebuyer tax credits. Increased sales and a return to profitability– no wonder employees are thinking it's time to ask for a raise. However, no one should be misled into thinking things are "back to normal". Potential challenges remain, lurking like a storm on the horizon. No one knows for sure whether the storm will pass by or head straight down Main Street.

Therefore, this Division President continues to manage his overhead judiciously which doesn't leave much room for pay raises. However, he can't assume his employees are tracking the economic forecasts like he is. The take-away: Now that the home buyer tax credit window has closed, it's a good time to remind your team that our industry is a long way from being out of the woods. As much as raises might be deserved, survival is still the name of the game and that rumbling in the distance might be thunder. Managing overhead and expenses today might well fund shelter from the storm tomorrow.

Upbeat Attitudes at Spring ULI

Wow! Talk about turning a 180– the energy and attitudes at Spring ULI in Boston were a dramatic improvement from six months ago. With a nod to the conservative forecast above, no one dared claim victory over the recession. However, it was clear that deals were being done, people were busy and there was plenty of forward looking discussion. The one which caught my attention more than any others was given by James Chung of the consumer research firm, Reach Advisors. Some highlights:

Asian American, Hispanic and Mixed Race families will experience significant growth in income, home ownership and as a percent of overall U.S. population. In terms of income earners, Asian Americans will pass White families as leaders of the pack.

Gen X buyers place far more value on community attributes than premium home features. However, they were not afforded the same income opportunities early in their careers as their Boomer parents. Therefore, builder must adapt their product and communities if they hope to tap this segment.

Today, women with equal education earn 79% of what their male peers earn. However, within the next ten years women will earn 1.5 times more than their male work peers. Women are already earning 100-120% of what their male counterparts earn in certain cities. The residual effect is that many of these women will continue down career paths for longer periods of time meaning longer time before marriage and starting families.

White (non Hispanic) families will decline as percentage of population growth and income leadership. In terms of income alone, Asian American families will become top earners yet their percent of homeownership is (today) far lower than their White counterparts. Hispanic families will also see a notable increase in home ownership potential.

To see the complete presentation, drop me an email or visit the website of Reach Advisors.