Latest / Uphoff on Media Podcast / It's Never Just Business
Transcript
- 0:01SPEAKER_00: Hey, it's Tony.
- 0:03SPEAKER_00: Coming up in business,
- 0:04SPEAKER_00: I always thought the line, it's not personal, it's just business was wrong.
- 0:09SPEAKER_00: Business is highly personal.
- 0:11SPEAKER_00: At the same time,
- 0:12SPEAKER_00: once I took on the responsibility of management and the accountability that came
- 0:16SPEAKER_00: with it,
- 0:17SPEAKER_00: I knew there would be times I'd have to make a decision and deliver it
- 0:20SPEAKER_00: that was right for the business and wrong for some of the people in it.
- 0:24SPEAKER_00: That's the job.
- 0:26SPEAKER_00: Making calls that change people's careers has never gotten easier.
- 0:29SPEAKER_00: But leading businesses through disruption and transformation,
- 0:32SPEAKER_00: I've learned a lot about how to make those calls and how to deliver them.
- 0:36SPEAKER_00: In this episode titled,
- 0:39SPEAKER_00: It's Never Just Business,
- 0:40SPEAKER_00: I go back to 1998 when we ended the famous Bytes print edition
- 0:46SPEAKER_00: and people lost their jobs.
- 0:48SPEAKER_00: And they lay out a better rule.
- 0:50SPEAKER_00: Make the decision on business terms and deliver it like a human being with respect,
- 0:54SPEAKER_00: dignity, and empathy without losing yourself in the process.
- 0:58SPEAKER_00: Okay, let's get to work.
- 1:02SPEAKER_00: Every leader eventually makes a call that hurts someone they care about.
- 1:06SPEAKER_00: Here's how to make it without going cold or caving.
- 1:10SPEAKER_00: It's not personal, it's just business.
- 1:12SPEAKER_00: It gets said most often at the exact moment it's least true across a table
- 1:17SPEAKER_00: to someone whose job title or plans just changed.
- 1:21SPEAKER_00: Nobody has ever walked out of that conversation agreeing with it.
- 1:25SPEAKER_00: I've said some version of the opposite for close to 30 years.
- 1:28SPEAKER_00: People who say it's not personal, it's just business are kidding themselves.
- 1:33SPEAKER_00: Business is highly personal.
- 1:34SPEAKER_00: And as a leader,
- 1:35SPEAKER_00: you will need to make decisions that are in the best interest of the business
- 1:39SPEAKER_00: and not in the best interest of someone on your team.
- 1:42SPEAKER_00: Sometimes someone you like, respect, and hired yourself.
- 1:47SPEAKER_00: Both halves of that are true at the same time.
- 1:50SPEAKER_00: Most of the damage leaders do to their teams and to themselves comes
- 1:55SPEAKER_00: from pretending one of them isn't.
- 1:59SPEAKER_00: Management comes with two loyalties and no instructions.
- 2:02SPEAKER_00: In the post,
- 2:03SPEAKER_00: be careful what you wish for,
- 2:05SPEAKER_00: I wrote about the question I have been asked every few months for
- 2:08SPEAKER_00: over three decades.
- 2:09SPEAKER_00: Should I get into management?
- 2:11SPEAKER_00: That piece was about whether you're built for the sea.
- 2:14SPEAKER_00: This one is about what happens after you say yes,
- 2:17SPEAKER_00: when you discover the job comes with two loyalties and no instructions
- 2:21SPEAKER_00: for holding both.
- 2:23SPEAKER_00: The first loyalty is to the person in front of you,
- 2:25SPEAKER_00: the one who stayed late during the carve out,
- 2:27SPEAKER_00: who covered for you when your kid was sick,
- 2:30SPEAKER_00: who actually you enjoy having a beer with.
- 2:33SPEAKER_00: The second loyalty is to the enterprise.
- 2:36SPEAKER_00: That word sounds cold until you remember what it actually is.
- 2:40SPEAKER_00: The other 200 people,
- 2:41SPEAKER_00: their families,
- 2:42SPEAKER_00: the customers who bet their own plans on you delivering,
- 2:45SPEAKER_00: the investors who funded the payroll,
- 2:47SPEAKER_00: Deciding for the business is almost never deciding for a spreadsheet.
- 2:51SPEAKER_00: It's deciding for a larger group of people who aren't in the room.
- 2:54SPEAKER_00: That's the weight.
- 2:56SPEAKER_00: Business isn't impersonal.
- 2:58SPEAKER_00: It's personal in two directions at once.
- 3:02SPEAKER_00: It's just business and we're a family.
- 3:04SPEAKER_00: Fail the same way.
- 3:06SPEAKER_00: The first lie is the one leaders tell themselves it's just business.
- 3:10SPEAKER_00: It's anesthetic.
- 3:11SPEAKER_00: It lets you make the call without feeling the cost, which is exactly why it fails.
- 3:16SPEAKER_00: The person across the table feels the cost in full
- 3:18SPEAKER_00: and they can tell you've numbed yourself to it.
- 3:21SPEAKER_00: What they remember isn't the decision.
- 3:23SPEAKER_00: It's that you seemed not to mind.
- 3:26SPEAKER_00: The second lie is the one leaders tell their teams.
- 3:29SPEAKER_00: Hey, we're a family.
- 3:30SPEAKER_00: It feels generous when you say it at the all hands.
- 3:33SPEAKER_00: It's a promise you can't keep.
- 3:35SPEAKER_00: Families don't restructure.
- 3:37SPEAKER_00: Families don't run performance reviews.
- 3:39SPEAKER_00: Families don't sell the division.
- 3:41SPEAKER_00: Netflix saw this clearly enough to write the opposite into its culture memo.
- 3:46SPEAKER_00: Quote, it's why we model ourselves on a professional sports team, not a family, end quote.
- 3:52SPEAKER_00: Families, the memo says, are about unconditional love.
- 3:55SPEAKER_00: Every leader who has said family and then had to lay someone off has watched
- 3:59SPEAKER_00: a normal business decision land as a personal betrayal.
- 4:04SPEAKER_00: The word made it one.
- 4:06SPEAKER_00: The two lies run in opposite directions and they fail the same way.
- 4:10SPEAKER_00: Each one makes the tension go away by pretending one loyalty doesn't exist.
- 4:14SPEAKER_00: The job is to carry both.
- 4:18SPEAKER_00: What I told the team when we ended Byte's print edition.
- 4:22SPEAKER_00: In 1998,
- 4:23SPEAKER_00: I was a group president at CMP Media running a division north of $300 million a year
- 4:27SPEAKER_00: in revenue when CMP bought McGraw-Hill's Information Technology
- 4:31SPEAKER_00: and Communications Group and handed the acquired brands to me.
- 4:35SPEAKER_00: The best known of them was Byte,
- 4:37SPEAKER_00: which had been the reference point for serious computing since its first issue
- 4:40SPEAKER_00: in September of 1975.
- 4:43SPEAKER_00: From diligence onward, two groups of people were watching my every move.
- 4:48SPEAKER_00: The C&P employees in my division wanted to know what the acquisition meant
- 4:51SPEAKER_00: for their positions and their work.
- 4:53SPEAKER_00: The people coming over from McGraw-Hill wanted something harder to give,
- 4:57SPEAKER_00: assurances that their brands and their jobs were safe.
- 5:01SPEAKER_00: That's the moment the family lie is most tempting.
- 5:03SPEAKER_00: A few warm promises at an integration meeting would have bought a quiet month.
- 5:08SPEAKER_00: They also would have been promises nobody could keep.
- 5:11SPEAKER_00: Several of the acquired brands were in decline and hadn't led their niches for a while.
- 5:17SPEAKER_00: Byte's circulation had slid from roughly 523,000 in 1996 to about 443,000 by
- 5:24SPEAKER_00: the time of the deal, the New York Times reported at the time.
- 5:28SPEAKER_00: We worked through the details and then we made the calls.
- 5:31SPEAKER_00: Byte suspended its print edition after the July 1998 issue and moved online.
- 5:36SPEAKER_00: A second acquired brand closed outright.
- 5:39SPEAKER_00: Its circulation and other assets folded into another title.
- 5:42SPEAKER_00: Both decisions cost people their jobs.
- 5:45SPEAKER_00: When we told the team, I said what I had to believe for a long time.
- 5:50SPEAKER_00: Quote, this is business, not personal, really isn't accurate.
- 5:54SPEAKER_00: Business is highly personal and particularly so for the people who lost their jobs today.
- 5:59SPEAKER_00: At times,
- 6:00SPEAKER_00: as leaders,
- 6:01SPEAKER_00: we need to make decisions that are in the best interests of our business and
- 6:04SPEAKER_00: that may not be in the best interests of some of the people involved.
- 6:08SPEAKER_00: This is one of those times."
- 6:12SPEAKER_00: It didn't make the news any easier to hear.
- 6:14SPEAKER_00: Nothing would have.
- 6:14SPEAKER_00: What it did was refuse both lies in the same breath.
- 6:18SPEAKER_00: It didn't pretend the decision was painless and it didn't pretend the decision was still open.
- 6:23SPEAKER_00: Byte's last print issue still gets written about as the end of an era in technology publishing.
- 6:28SPEAKER_00: It was.
- 6:29SPEAKER_00: It was also the right call for the business.
- 6:31SPEAKER_00: Both of those were true on the same day, and a leader has to be able to say both.
- 6:37SPEAKER_00: Managers are carrying more of this and doing it alone.
- 6:40SPEAKER_00: The numbers say this matters more than most leaders admit.
- 6:43SPEAKER_00: Gallup's research has held for a decade that managers account for at least 70% of
- 6:48SPEAKER_00: the variance in employee engagement across business units.
- 6:52SPEAKER_00: As far as the team is concerned, the manager is the job and managers are carrying it worse.
- 6:58SPEAKER_00: Gallup's 2026 State of Global Workplace Report puts manager engagement at 22%
- 7:03SPEAKER_00: in 2025 down from 31% in 2022.
- 7:09SPEAKER_00: With five of those nine points lost in a single year,
- 7:12SPEAKER_00: the same report found leaders feel more stress,
- 7:15SPEAKER_00: more anger,
- 7:16SPEAKER_00: more sadness,
- 7:17SPEAKER_00: and more loneliness day to day than individual contributors
- 7:20SPEAKER_00: with loneliness running 10 points higher.
- 7:24SPEAKER_00: The person with the most influence
- 7:26SPEAKER_00: on how everyone else experiences work is increasingly the person most alone in it.
- 7:31SPEAKER_00: That's what happens when leaders try to carry both loyalties without a system for doing it.
- 7:38SPEAKER_00: Ration, hold.
- 7:40SPEAKER_00: Three zones, three different rules.
- 7:42SPEAKER_00: The advice leaders usually get here is to be friendly but not friends,
- 7:47SPEAKER_00: approachable but with boundaries.
- 7:49SPEAKER_00: It's not wrong.
- 7:50SPEAKER_00: It's just not usable because it treats warmth and authority as one dial
- 7:55SPEAKER_00: where turning up one turns down the other.
- 7:57SPEAKER_00: They're not one dial.
- 7:58SPEAKER_00: What a leader offers the team falls into three different zones and each one runs
- 8:04SPEAKER_00: by its own rule.
- 8:07SPEAKER_00: Here's an Uphoff advisory framework to put this to work.
- 8:10SPEAKER_00: I call it give, ration, hold.
- 8:13SPEAKER_00: Picture three columns.
- 8:15SPEAKER_00: Give is what a leader offers freely and never rations.
- 8:18SPEAKER_00: Warmth and respect, candor, early and often, your actual personality and your time in a crisis.
- 8:24SPEAKER_00: That's what keeps you yourself.
- 8:26SPEAKER_00: Ration is what you manage deliberately.
- 8:29SPEAKER_00: Access and availability, confidence, after hours, closeness, and who hears what first.
- 8:35SPEAKER_00: That's where boundaries live.
- 8:37SPEAKER_00: Hold is what you set before you need it.
- 8:39SPEAKER_00: The decision criteria,
- 8:40SPEAKER_00: the performance standard, the interests of the business and the call itself.
- 8:44SPEAKER_00: The standard does the work so the relationship doesn't have to.
- 8:48SPEAKER_00: Under pressure, leaders go wrong one of two ways.
- 8:51SPEAKER_00: The hardened leader rations what they should be given.
- 8:55SPEAKER_00: Warmth goes cold and the team complies without trusting.
- 8:58SPEAKER_00: The dissolved leader gives away what should be held.
- 9:01SPEAKER_00: The standard bends and no decision feels fair.
- 9:05SPEAKER_00: Use it to check which way you lean when the pressure is on.
- 9:09SPEAKER_00: The full chart is in the post or at upoffadvisory.com slash frameworks.
- 9:21SPEAKER_00: The decision is business.
- 9:23SPEAKER_00: The delivery is personal.
- 9:25SPEAKER_00: The simplest operating rule I know,
- 9:27SPEAKER_00: make the decision on business terms and deliver it like a human being.
- 9:31SPEAKER_00: The business decision answers whether, does this role exist?
- 9:34SPEAKER_00: Is this person meeting the bar?
- 9:36SPEAKER_00: Does the plan still work?
- 9:37SPEAKER_00: That decision should be clear-eyed,
- 9:39SPEAKER_00: consistent, and written down before any name is attached to it.
- 9:43SPEAKER_00: The delivery answers how,
- 9:45SPEAKER_00: who tells them,
- 9:45SPEAKER_00: whether it's you,
- 9:46SPEAKER_00: how much notice,
- 9:48SPEAKER_00: what you say and whether you say it yourself instead of reading off an HR script,
- 9:52SPEAKER_00: what support comes with it,
- 9:53SPEAKER_00: severance you fought for,
- 9:54SPEAKER_00: a reference you'll actually give, a call you'll take six months later.
- 9:58SPEAKER_00: Nothing about the delivery changes the decision.
- 10:01SPEAKER_00: Everything about it changes what the decision means to the person living through it
- 10:06SPEAKER_00: and to the 40 people watching how you handled it.
- 10:10SPEAKER_00: Two more rules sit underneath that one.
- 10:12SPEAKER_00: Early truth is the kind version.
- 10:15SPEAKER_00: The cruelest thing a leader can do is protect a relationship by withholding bad news
- 10:20SPEAKER_00: about performance.
- 10:21SPEAKER_00: The feedback you skip in March to keep things friendly becomes the termination
- 10:25SPEAKER_00: in October that nobody saw coming.
- 10:27SPEAKER_00: Candor delivered early is warmth.
- 10:30SPEAKER_00: Candor delivered late is an ambush.
- 10:34SPEAKER_00: Don't need your team to like you.
- 10:36SPEAKER_00: Wanting to be liked is fine.
- 10:37SPEAKER_00: Needing it is where every boundary breaks.
- 10:41SPEAKER_00: A leader whose only source of support is the team will ration
- 10:47SPEAKER_00: The
- 10:51SPEAKER_00: support system I call the hardest trait in be careful what you wish for,
- 10:55SPEAKER_00: the peers,
- 10:56SPEAKER_00: the board members you can call,
- 10:58SPEAKER_00: the coach,
- 10:58SPEAKER_00: the family that knows you outside the title is what lets you be warm with your team
- 11:03SPEAKER_00: without needing anything back from them.
- 11:08SPEAKER_00: AI will make the analysis sharper, the delivery still has to be yours.
- 11:12SPEAKER_00: There's a 2026 version of the first lie and it's already here.
- 11:16SPEAKER_00: Employers cited AI in 120 announced job cuts, 120,000 job cuts.
- 11:25SPEAKER_00: In the first nine months of this year,
- 11:27SPEAKER_00: according to Challenger,
- 11:28SPEAKER_00: Gray, and Christmas, more than double the 54,000 for all of 2025.
- 11:33SPEAKER_00: As agentic AI takes on more of the analysis behind staffing,
- 11:37SPEAKER_00: territory,
- 11:37SPEAKER_00: and performance decisions,
- 11:39SPEAKER_00: leaders will be tempted to hand the moral weight to the system along with the math.
- 11:43SPEAKER_00: The model ranked the roles.
- 11:45SPEAKER_00: The model flagged the underperformers.
- 11:47SPEAKER_00: It's not personal.
- 11:49SPEAKER_00: It's just the output.
- 11:50SPEAKER_00: It's the same anesthetic and it will fail the same way.
- 11:53SPEAKER_00: Machines can sharpen the decision.
- 11:55SPEAKER_00: They can make the criteria more consistent and the data harder to argue with.
- 11:59SPEAKER_00: That's useful.
- 12:00SPEAKER_00: They can't carry the delivery and a team will not accept a decision delivered
- 12:04SPEAKER_00: by someone hiding behind a dashboard.
- 12:07SPEAKER_00: The more of the analysis agents take on,
- 12:09SPEAKER_00: the more of the leader's job is exactly this part,
- 12:12SPEAKER_00: owning the call and delivering it like a human being.
- 12:17SPEAKER_00: What your team remembers is how you delivered it.
- 12:20SPEAKER_00: Leadership doesn't ask you to resolve the tension between the person in front of you
- 12:24SPEAKER_00: and the people counting on the enterprise.
- 12:26SPEAKER_00: It asks you to carry it openly without numbing yourself to one side or lying to the other.
- 12:32SPEAKER_00: Give the warmth away every day.
- 12:34SPEAKER_00: Ration the closeness.
- 12:35SPEAKER_00: Hold the standard before you need it.
- 12:37SPEAKER_00: Then, when the hard call comes,
- 12:39SPEAKER_00: and it will, make the decision on business terms and deliver it like a human being.
- 12:44SPEAKER_00: It was never just business.
- 12:46SPEAKER_00: It was always yours to decide.
- 12:49SPEAKER_00: Well, that's the episode.
- 12:51SPEAKER_00: To download, give, ration, hold,
- 12:54SPEAKER_00: go to the post on Uphoff on Media on Substack
- 12:56SPEAKER_00: or visit uphoffadvisory.com slash frameworks.
- 13:00SPEAKER_00: And one favor,
- 13:01SPEAKER_00: if the show is useful,
- 13:02SPEAKER_00: follow it and leave a rating or review on Apple Podcasts or Spotify.
- 13:06SPEAKER_00: It's the easiest way for other operators to find it.
- 13:09SPEAKER_00: Back at it next week.