Jack Hubbard, CEO Propellernet
(Extract from Winter eO&P AMED journal edited by Rob Warwick and Pete Burden)
The business world puts profit before people and in doing so cuts off its nose to spite its face. Inspired people and goodwill in relationships are where the true value lies in a business, but in an effort to organise and industrialise we stifle people and throttle value. Jack found that the tools and ideas of the business world were not fit for his purpose as CEO and has been on a 10 year journey trying to build a new mindset and toolset, one that recognises and harnesses human value potential. In this article Jack shares his credo and some of the thinking and initiatives that have helped him on his journey.
Having recently topped the Guardian’s honours list, Propellernet is officially the best small company to work for in the UK. Our company is also accredited with the Investors in People Wellbeing Award and made the Worldblu list of the most Democratic and Free Workplaces in the world. And because of our complete commitment to the health and happiness of our staff, they return the favour by delivering outstanding work, market beating growth and record profits. We were also recognised as the Best Agency and for the Best Campaign at the European Search Awards earlier this year.
The credit for this success belongs to kind hearted MD Nikki Gatenby, everyday genius Gary Preston and the diverse cast of wonderful characters I am privileged enough to work with. For my part, as CEO, I strive to hold a vision and space for them to do their thing. I believe the way to make a company the best version of itself is by hiring outstanding people and creating a culture within which they can become the best versions of themselves. In this article I share my thoughts on how the business world gets this wrong, and how we get it right.
People create the future
For the last 150 years the prevailing business paradigm has been one of industrialisation, globalisation and automation. The business world strives to do more at a lower cost. As a result, products and services that were considered high value just a few years ago have been copied, commoditised, automated and outsourced to Asia. Creating more of the same stuff for less money belongs to the robots and the Chinese, so creating better stuff is the only way to go for us.
This is the business of innovation and it is done best by companies who invest in their people because the requisite qualities for innovation (curiosity, creativity and adaptability) are fundamentally human attributes. Innovation is done best by people who embrace the uncertain future with a spirit of adventure, compelled to design a better one. A culture of fear kills this spirit.
Business at its core is about people working together to meet their needs and improve their situation. It is a tool to serve people, not the other way round, as is often forgotten. Employees and customers are human beings and the things that really matter are how these people feel, think and relate. Business is a design tool for improving the things that matter in life, and we should use it for this purpose; to improve life for employees and customers.
We are Superheroes
When we start a job, we are given a job description. How we perform this list of tasks is measured through our appraisal process, which forms the basis for how the company values our contribution. Our employer only places value on our ability to perform a narrow set of tasks. We are encouraged to limit our potential, which is why Clark Kent hides his cape at work.
Billions of years in the making through nature’s great evolutionary design, we human beings are pretty special creatures. We are amazing in ways that are beyond our own comprehension and have many superpowers we don’t even know about yet.
At Propellernet we encourage full use of super powers. Every one of our superheroes has a rich tapestry of history behind them and a world of possibilities ahead of them. As individuals they are vast reservoirs of energy, alive with experiences, ideas, contacts, dreams, opinions, emotions and abilities just itching to find a creative outlet. We are discovering new superpowers all the time, and as a team we’ll save the world from the clutches of evil.
There’s no accounting for people
The business world is run by accountants but accounting is not about people, it’s about numbers. Accountants regard people as unpredictable liabilities. We have lives, get sick, change jobs and exercise rights. We are an obstacle to profit and a cost to be minimised. HR departments too often exist to protect companies against the legal repercussions of treating their employees badly. Is it any wonder people get sick or leave in search of a better life?
I believe people should be accounted for as assets who appreciate in value over time as they develop relationships, goodwill, knowledge and ideas. The more a company invests in each person, the more of themselves they invest into the company and the more valuable they become as an asset. This value is not recorded in modern accounting practice and until it is, bad decisions will be made at the top, destroying value and creating a mess on the shop floor.
Financial reward is an important but small part of investing in people. People need to rest, to learn, to be inspired, to be challenged and to grow. We all have different needs at different times in life, the most important thing is to be interested in people beyond their job role and invest time to get to know them.
Growth isn’t always good for people
Small businesses want to get big enough to be bought out by big businesses so that the founders get rich. Big businesses want to get big enough to become PLCs so that their executive team can liquidate their stock and check out before it all goes tits up. The unsuspecting public then acquire what’s left through pension schemes and wind up holding worthless shares in something they know nothing about, have no control over but are dependent upon for retirement. We blindly chase arbitrary targets around a hamster wheel to serve a system that will ultimately screw us over. Ask your mum or dad if their pension was as good as they were led to believe.
Companies chasing this dream often grow too fast and go pop. More clients increase service headaches, more employees increase HR headaches and more products increase administrative headaches. I don’t know anyone that likes headaches, so why does the business world dedicate so many resources to producing them? Ironing out these issues is easy for an agile gymnast, but impossible for an unwieldy juggernaut. Growing a business of value and happiness is a worthy pursuit, but scaling a business full of suffering is toxic and should not be allowed. Stay small, iron out the pain and scale the joy later.
Employees make great shareholders
Many businesses give away big chunks of equity to outside investors, particularly in the early years, because they believe they need money to hire staff, develop products and find clients. They invariably regret it and there’s no going back. If you are creative and keep things lean the money from your early clients will finance cash flow. This way you learn valuable discipline, stay in control of decisions and see a greater share of the rewards.
If you want to sell shares, sell them to your best employees. If they can’t afford it, get creative, there are ways. These people understand your business better than anyone and know exactly what to do to grow the value of it. If they have a stake they will drastically increase the value of the company, along with the value of any remaining shares you hold.
Employee owned companies perform brilliantly because the people who best understand the company retain control of key decisions and share the rewards of good performance.
Pay your Fun Taxes
When you have fun, the tax man assumes it can’t be work and taxes you on it as if it were salary. If a business expense can be seen to provide a level of enjoyment to employees it is deemed as a benefit in kind and subjected to an extortionate fun tax. The Inland Revenue assume that work is meant to be miserable and don’t understand that you might be inspired to create something of value while climbing a mountain, dancing in a forest or gazing upon the northern lights. Their perverse logic leads them to believe that the most valuable work gets done in drab offices under fire of angry bosses and RSI injuries.
Most companies ban fun because the fun tax makes it too expensive. Christmas party budgets are slashed, benefits are scrapped, employees become miserable, they leave, then profits start looking miserable. We think it’s worth paying fun taxes and go to great lengths to maximise fun levels despite the cost. We create beautiful workspaces, throw outlandish parties, take adventurous holidays and feast at fine restaurants. And guess what, we boost the economy, attract and retain top talent and do world class work.
When we feel great we do great work and so we are always looking for new angles on health and wellbeing. Meditation, yoga, Pilates, reflexology, head massage and mind clinics can often be seen taking place around our offices, and we regularly invite experts to talk to us on a wider range of wellbeing subjects. As a result we have a caring, healthy and happy culture. If our people experience adversity in life, we are there for them and try to signpost them to appropriate support networks such as doctors, counsellors and legal aid, often picking up the bill.
We encourage the creative arts and have sponsored employees through courses as diverse as glass blowing, improvisational comedy, street dance, pottery and learning to draw. This has strengthened the foundations of our culture and unleashed a wave of creative energy which has driven many innovations. The learning to draw course, for example, sparked a revolution in visual communication which has transformed the work we do with clients.
Art for Inspiration
The ever curious Sophie Tanner was astounded by how interesting her colleagues were and saw this as the company’s primary asset. She set about interviewing everyone and documenting their life story, what kind of childhood they had, their philosophies, hobbies, ambitions, favourite music, what animal they saw themselves as. She hired a local artist to draw a cartoon scene capturing each person, commissioned the build of a beehive room and placed a cartoon world for each of our people in a honeycomb cell. Sophie’s “Honeydrome” is a powerful metaphor for our collective intelligence and a great example of art for inspiration.
For a new starter it can take years to get to know just a few people, now they can get to know everyone on day 1. Employees can see that the company places value on the fullness of who they are in life, not just what they delivered at work today. And when we lack empathy for a client project we have a visual signpost to the parents, the skiers, the travellers, the foodies, the musicians, the fashionistas and the yoga teachers.
The richness of the Honeydrome
Will it make life better?
Nikki Gatenby and I were inspired by Olympic gold medallist rower, Ben Hunt-Davies. His crew in the 8 man boat were average at best and without the natural talent of Pincent and Redgrave. They had toiled away for years and gotten nowhere. They had to try something new so they replaced their training programme with a single question, “Will it make the boat go faster?”
They all came up with ideas, and every idea was put to the test. Over the months, bit by bit they discovered many ways to make the boat go just that little bit faster. On the big stage their boat went the fastest and the underdog crew each picked up an Olympic gold medal.
It wasn’t a lengthy plan or set of arcane principles. It was a simple mantra that drove their behaviour every day in a way that would achieve their desired goal. We loved its simplicity and wanted our own one: “Will it make life better?”
The real purpose driving us, the motivation for getting out of bed, turning up every day, hungry to run a great business and deliver great work over and over again, is to make life better. Now if we are ever unsure, we simply ask “will it make life better?” and the way becomes clear. Consequently life keeps getting better.
Instead of making happiness a goal for a tomorrow that may never come, we design it into our everyday experience. And we become more successful tomorrow because we are happier today.
The glorious Dream Machine
To calculate revenue-per-person we divide revenue by the number of people in the company. It is this number we are driven to grow because it indicates the relative resources available to make life better for everyone in the company. If we doubled revenue and doubled staff numbers, revenue-per-person would remain the same and there would be no more money to make life better with pay rises and perks. More of the same growth means more work for the same reward. Revenue-Per-Person is aligned to our true purpose of making life better and powers innovation to create more value, not grow more volume.
The Dream Machine
When we achieve our revenue-per-person target we make a dream come true by drawing a dream ball from our giant yellow 80’s bubble gum dispenser, our very own “Dream Machine”.
We ask everyone to consider their dreams in life, the things that would really make life better for them and we help them understand how they can influence company performance in a way that will make theirs and other people’s dreams come true.
Our business plan is to make everyone’s dreams come true. It gives us a reason to dream and puts us in control of achieving our dreams. Steve and Jim are off to the Rio World Cup next year, Alan is riding a motorbike across Africa.
Making life better begins at home
Only by discovering the fullness of what life has to offer am I in a position to share it, and by living as an example I give the people around me permission and inspiration to explore life and pursue their own dreams.
Steve and Jim are off to the Rio World Cup
As a mere mortal, time is not on my side. So I seek extreme experiences which help me learn about life in an accelerated way. I’ve scaled the Matterhorn, danced on pirate ships, driven the getaway car from a jail break, challenged CEO’s in their boardrooms, eaten 30 courses in a single day and performed on the main stage at Glastonbury.
This of course is the ultimate in work life balance, but it isn’t as easy as it sounds. There is an oppressive assumption in the business world that if we enjoy something, it isn’t work and doesn’t create value. It’s as if we equate the level of suffering we endure to the amount of value we create. When business leaders behave in this way, sacrificing health, family life and happiness for the cause, they set a destructive precedent for everyone around them and create a culture which sacrifices people on the altar of profit.
Don’t get me wrong, I totally love making life better for myself on company hours, but because it’s not the normal behaviour the world expects from a CEO, I find myself swimming against the tide to make it work, and this can be exhausting. As long as I stay positive and focus my intentions on holding a vision, living the values and making life better for people, I can trust that I’m doing my bit in holding the right space for everyone to do their thing.
Staying positive is an essential part of it, and here are a couple of the practical brain tools I use.
Curate Positive Beliefs
We attribute meaning to our experiences through our belief systems. We all have different belief systems, which is why different people experience and perceive the same events in different ways.
For example, I choose to believe that everything happens for a reason and that it serves me in some way. So when something doesn’t go my way, instead of affirming the negative “bad things always happen to me” which will only help you make more bad stuff happen, I instantly think the infinitely more helpful “OK, that wasn’t meant to be for a reason because there is something even better that it would have prevented happening.” Then my mind searches for something better, finds it and makes that happen instead.
I curate my beliefs like a football team and field the team I know will score goals. I’m always scouting for talent and will regularly try out a new player. If they perform badly they’re out. Only consistent performers maintain their place in the squad.
The act of believing tricks the mind into perceiving our experience in ways that are consistent with that belief. I also choose to believe the mind is just another muscle to be put to work for the benefit of my greater self, so I have no problem deceiving it.
Developing an awareness of a conscious self beyond simple mind function in this way enables me to understand people and situations from a broader and more objective perspective. This is a vital skill for business leaders with responsibility for vision and culture.
As this awareness becomes more habitual, I find I can switch off my mind, relax and allow the world to make good things happen in my space. Less effort seemingly delivering better results.
Star in your own movies
The media promotes a belief that life is happening somewhere else, and we can only observe it from the sidelines. This gives us a feeling of powerlessness over our lives. When I came to realise this I stopped reading newspapers and watching TV and started paying more attention to my own world, the physical one that I actually live in and can influence.
A friend recently joked that I was too busy starring in my own movie to have time to watch the ones on TV. I thought that was a powerful metaphor which captured it nicely, so now I choose to see myself as a screenwriter and producer for my own life. I write the scenes in my mind then watch them unfold through my eyes. It’s great, I get to play all my favourite roles and cast all my favourite people in all my favourite places.
When you get really good at producing reality it’s essential to stay positive because our moods and emotions control the sort of films we make. If we feel negative we might make drama and horror, if we stay positive we can enjoy action, comedy and romance.
I said earlier that putting people first isn’t an altruistic principle and that’s because for 20 years I have had my own dream that has motivated me to overcome the countless challenges along the way. I close my eyes and this is what I see.
I’m living in a large chalet, surrounded by lush green forests and snow-capped mountains, the faint sound of a waterfall crashing in the distance, wild deer grazing in the valley and eagles soaring high up above in clear blue skies. This is my base of operations for a lifetime of adventures. I select the mission, assemble the team, consult with experts, gather intelligence, pour over maps and check equipment. We set out, the fires of excitement in our bellies. We return, enriched by new experiences and treasured memories. Then we feast.
Tomorrow I fly to the Alps where I am viewing 8 chalets in the valley of dreams. Next year my team will be joining me on a host of new adventures designed to make our lives better. Feel free to join us.
Heroes and influences
Here are some of the great people and ideas that have helped me along my journey.
Endless inspiration for conscious business – Karen Smithson
World class mentoring – Simon Conroy
Inspirational Spaces and Dream Machines – Nicola Gobat
Will it make the boat go faster? Ben Hunt-Davies
Freedom and democracy in the workplace www.worldblu.com
Wellbeing and creativity courses www.evolutionarts.org.uk
Business as an enabler of dreams – The Dream Manager by Matthew Kelly
On lifestyle design – The 4 Hour Working Week by Tim Ferriss
A spirit of adventure – Vagabonding by Rolf Potts
Right brain business – A Whole New Mind by Daniel Pink
Embracing change – Who moved My Cheese by Spencer Johnson
The importance of values – Built to last by Jim Collins
On hiring – Who by Geoff Smart
How the mind works – Blink by Malcolm Gladwell
Effective brain management – Unlimited Power by Anthony Robbins
About the author
Jack Hubbard is CEO of Propellernet
eO&P is an e-journal published by and available from the Association for Management Education and Development (AMED), a charity and membership network for business people interested in knowledge, innovation and networking in the digital age. The Spring 2004 edition of eO&P, guest edited by Pete Burden and Rob Warwick, will be published in April. AMED are always looking for guest contributors.