Are You a Value Creator or Extractor

A few weeks ago, we all witnessed the IT error that caused a global crash.

The chatter that followed was all about CrowdStrike and Microsoft. Who was to blame, why did it happen, etc.

There were posts everywhere about the fine line we’re walking between order and chaos.

I agree, but not in regard to how our lives are fully intertwined with these systems.

I believe that the line between order and chaos is rooted in leadership, and no one seems to be talking about it.

I decided to take a closer look at CrowdStrike.

Where better to start than Glassdoor?

Here’s what I found roughly 12 seconds into my search:

“Great tech [with] terrible culture with no work-life balance, with leadership that does not care about employee well-being. Management is the biggest issue, with managers asking way too much of you…and it doesn’t matter if you do what they ask since they’re not even around to check on you,”

and another saying that “management is arrogant” and needs to “stop lying to the market on product capability.”

I’ve come to the conclusion that people don’t like accepting simple explanations for complex catastrophes.

If, at a high level, the leadership was empathetic and solid in every way, something like this could’ve been avoided.

I truly believe that.

I kept researching and came upon a great article by Edward Zitron. His point was spot on.

He stressed that the tech culture of “grow at all costs” will continue to cause problems like this.

This is largely done because it increases speed. I get it , but people forget the consequences of going faster.

The probability of falling on your face rises, (which is necessary to grow) but more importantly it breeds a toxic culture.

It’s not a secret. Organizations are more proud than ever to tell you they’re looking for hyper-growth at hyper-speeds.

It’s how they got that check from the VC.

And how does a company achieve that hyper-growth? By hyper-fixating on extracting value.

Extract every last drop of value from the team, with a scorch-and-burn mentality.

In these moments, I get flashbacks of past bosses who claimed to me, “well we’re paying them, so I don’t know what more they need.”

You see it in their actions too.

Constantly looking for ways to squeeze every last drop of value. Make them work longer? Of course.

Don’t listen and hand down orders? Duh.

They messed up? Unacceptable.

Everything is a means to an end. The team members become numbers, and as long as there is production, they’re virtually ignored by their supervisors.

Why should they care? They only want top-line growth.

Why bother getting to know them, listening, or collaborating?

I’m not gonna lie.

There have been moments since I started this newsletter where I doubt my own mission.

Maybe people do understand the vitality of leadership and maybe they do genuinely care. You’re just not seeing it, Ardi.

But when a catastrophe like this strikes, I know there is plenty of work yet to be done.

Anyhow, enough of the problem. Let’s talk solutions.

You want to make sure you never see Glassdoor reviews like that? Or worse, a glitch that shuts down the world?

Then you have to create value for your team.

Before you roll your eyes because this is the 200th time you’ve heard someone talk about “value,” hear me out.

It’s in how you give, how much you give, and the motive of the “give” that will create value.

Gif by netflix on Giphy

In some ways, it’s simple. Constantly ask yourself, what am I giving my team?

The complexity lies in shifting your mindset—only because we’re human and we hate change.

For this week, utilize the free guide below to understand the distinction between creator/extractor and to make sure you execute the former.

P.S. Thanks to those of you who provide me feedback and update me on your leadership journey. I can’t tell you how grateful I am. Keep ‘em comin’!

Guide to Creating Value for Your Team vs. Extracting It

1. Understand the Difference Between Value Creation and Extraction

- Value Creation: Investing in your team's growth, well-being, and development. It focuses on long-term benefits for both the team and the organization.

- Value Extraction: Taking as much as possible from the team with little regard for their well-being. It prioritizes short-term gains, often leading to burnout and dissatisfaction.

2. Foster Empathy in Leadership

- Listen Actively: Make time to listen to your team’s concerns and suggestions. This shows you value their input and are willing to act on it.

- Show Genuine Care: Be involved in their professional and personal well-being. Celebrate their achievements and support them during tough times.

3. Prioritize Work-Life Balance

- Set Clear Boundaries: Encourage your team to disconnect after work hours. Avoid contacting them during their personal time unless it’s an emergency.

- Flexible Scheduling: Where possible, offer flexible working hours to help them balance their personal and professional lives.

4. Encourage Continuous Learning and Development

- Provide Training Opportunities: Regularly invest in training and development programs that help your team grow their skills.

- Mentorship Programs: Pair less experienced team members with seasoned professionals to provide guidance and career advice.

5. Create a Culture of Recognition

- Celebrate Achievements: Publicly acknowledge and reward individual and team accomplishments.

- Constructive Feedback: Provide regular, positive feedback, and constructive criticism. Ensure it's aimed at helping them grow, not just pointing out mistakes.

6. Promote Collaboration and Inclusion

- Encourage Teamwork: Create opportunities for your team to work together on projects. Foster an environment where everyone’s ideas are valued.

- Diverse and Inclusive Environment: Make sure your team feels safe and respected. Promote diversity and inclusion in all aspects of your work.

7. Lead by Example

- Model Desired Behaviors: Demonstrate the behaviors you want to see in your team. Show respect, work hard, and maintain integrity.

- Transparent Communication: Be open about company goals, challenges, and successes. Transparency builds trust and a sense of shared purpose.

8. Shift Your Mindset to Giving

- Ask Yourself: Regularly ask, “What am I giving my team today?” Focus on providing support, resources, and opportunities.

- Align Motives: Ensure your efforts to give are genuine and not solely for personal or organizational gain.

Action Steps for Leaders:

1. Self-Assessment: Reflect on your current leadership style. Are you more focused on extracting or creating value?

2. Feedback Loop: Create a system for regularly collecting and acting on feedback from your team.

3. Implement Changes: Based on feedback and self-assessment, make concrete changes to your leadership approach.

4. Monitor Progress: Regularly review the impact of these changes on team morale, productivity, and overall satisfaction.

By incorporating these steps into your leadership practice, you can move towards creating a supportive and thriving team environment that naturally leads to sustained success.