The value of Feedback

ümit Suba??, FRM President, Campbell International, and FRM Member of the Executive Board & President Emerging Markets, Beiersdorf, joined our Finance lecture at NYU SPS. We spoke about Feedback and the type of work CEOs do. ümit also responded to questions about the difference between working in Europe and the US, whether companies should provide feedback to job applicants they don't hire, whether consumers or employees are more important, how to handle criticism and 8 other topics. The full recording is available here. Below are some key excerpts and the link to his complete response by topic.

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I. Subasi, the CEO

In Europe, Boards have employee representation. Is that good?

"The short answer is yes. It's hard in big organizations to know what really happens in the business because you are continuously exposed to storytelling. Mind you, it must be managed because, at Boards, you have policies you must enforce. Employees at the Board level are like sensors attached to our bodies. Boards should make the most out of it. If I must decide on that, my preference is to have employees on Boards." 1 ????? ???? ????????

As CEO or Board Member, what do you do?

"The role of a CEO or Board Member can be described by imagining a house or a pyramid. At the top, you have board members, the architects defining strategy, direction, and targets. In the middle, those who make it happen, translating it into day by day action, let’s call them middle management. At the base, you have all the daily work where processes, tasks, and activities are carried out."

"The Board should focus on strategic guidance and the mechanisms for people to perform at their best. Board members shouldn’t get sidetracked by execution discussions about the Pantone colors of certain advertising materials, or the pencils we use at the office and things like that, that makes no sense." 2 ????? ???? ????????

What is the difference between being a CEO in the US and Europe?

"I believe there are more commonalities among us than differences. There are certain cultural and shopping patterns differences to be mindful of, but typically those gaps are not too big."

"In Germany, people are direct and straightforward. In the US, there is underlying anxiety in the business culture; it's passive-aggressive. In Southern Europe, there is high-energy, smiles, lots of body movement. In Japan and China, there are certain courtesy elements that you have to respect when relaying a message. Bringing this into the context of Feedback and communication, you have to convey messages tactfully. If it's outside the cultural norms, it usually doesn't end up properly at the destination." 3 ????? ???? ????????

Does Asia-Pacific have the most growth potential? 

“China is always the elephant in the room. China never loses its importance. Let's just park that fact. In the last five years markets in Southeast Asia like Indonesia, Philippines, and Vietnam, due to their increasing disposable income, better distribution of wealth, and highly dynamic economies have stood out as high potential for many industries.” ? ????? ???? ????????

Customers or employees. What is more important?

"Employees are more important. To get to your customers, you need to have the right people in place. What a business does, how it generates value, and what makes that happen are the people a company employs to deal with customers. You may have a great set of customers, but if you don't have the right people to manage those customers, it will collapse. People are the soul of any company." ? ????? ???? ????????

II. The value of feedback

Feedback process for teams

"Learning from failure is the essence of a feedback process; it brings us potentially to success." "High-performance teams operate in a high trust environment." "To get everybody on the same page, the first questions are What did we set out to do? What actually happened? What could we do better next time? Most companies like clarity about what's happening, who is doing what, why we are doing this, and what is our common goal. People don't speak about these things, but once there is clarity, there is structure, and there is a way of communicating, then things move forward."

I didn't get the job. Should I get Feedback?

"Businesses should give feedback to candidates who didn’t get a job. People appreciate that. They may not like the feedback, but a company that doesn't make that effort is likely not the place you want to work." ? ????? ???? ????????

Leaders set the tone

"In my previous role at Campbell International, which was sold to private equity, thousands of people wondered during the process, 'Are we being sold? What's next for us? Can we keep our jobs? Can I still put bread on the table?' As a leader, it is my duty of care to worry about that. I met thousands of people at non-scripted town halls and Q&As to answer their questions. We visited 30 plus locations covering every location, every shift. There'll always be some critical people, but if I keep 95 percent happy, I've done a good job." ????? ???? ????????

As a volunteer firefighter, have you received any feedback useful for other aspects of your life?

"Absolutely. Here is an example, I can fly airplanes and drive tanks and trucks, which gives me a level of comfort. At the fire department, we have a protocol of keeping both hands on the steering wheel when driving. We also have lots of black flies in Australia. They're around you all the time. Once I slap my hand to the window to catch one. Later on, the crew leader told me, 'Hey, can you be a bit more focused when you drive the truck, keep your hands on the steering wheel, and maybe not chase flies?' I said, 'Yep, I will do it.' 1? ????? ???? ????????

Most Powerful Feedback I received

"In my professional life, I didn't have a figure who told me what to do. I had to look around me; looking up to others enabled me to learn from them. I was fortunate to have the privilege of working with impactful leaders who did many good things and delivered exceptional business results. Looking up to others as a form of learning creates self-reflection, and is a great way to improve leadership skills." ? ????? ???? ????????

Feedback perceived as advice, criticism, or observational

“It really depends on the different type of context, where you get that feedback, out of which mechanism, is there an established process for it or is it just a conversation next to the coffee machine in the office. I think the setting in which it happens and the context in which it happens defines a lot because if there is no protocol and there is no trust then you can easily end up taking it as criticism.” ? ????? ???? ????????

What do you do when you experience hard criticism?

"I start by observing the setting that I'm in. Is it a trusting, emotional, or structured-protocol environment? It's important to keep your cool and ask questions to yourself. If it happens in a structured environment, take the feedback, and observe it. Challenge yourself to see how you can do better based on that feedback. This is easier said than done, of course, because being defensive is the easiest reaction we can show at any given time. Keeping control, keeping calm, and assessing it factually versus emotionally are probably the best traits you can have when receiving feedback." ? ????? ???? ????????

III. Umit, the person

What advice would you give a younger version of yourself?

"The two things I would say are, first, be yourself, then, never forget your roots. I see people who try to put on different faces thinking it may serve the target audience, but the truth is you make a difference by being yourself. Sometimes it works, and sometimes it doesn't. Eventually, you'll find the right place where you, being you, will be right. The other thing is never to forget where you come from and your roots. I come from a very modest family and had no advantages in having a kick start. I started as a salesman at SC Johnson, and I did it day in and day out and made it up the food chain to roles I'm thankful for." 11 ????? ???? ????????

Thank you, Umit

Students prepared this short video to thank Umit for his presentation.

Students' reactions to Umit Subasi’s chat

The feedback shown below was received anonymously.

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Watch it on Youtube

We thank Ã¼mit Suba?? for letting us make this lecture available to others. The full recording is available with captions (subtitles) on Youtube here. Following the format used by the FOMC, laugher is highlighted as such on the captions.

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Why we bring speakers to a Finance class

At a school with constant innovation, the best thing we can do for our students is to have them speak with real-world leaders to become inspired. It's mutually beneficial. Teaching this class is a highlight of the week for me. I frequently use for my "day job" ideas about pricing and product launches I learned from my students. Read more about this class.

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Other speakers this semester

On October 22nd, we hosted Ms. Georgia Garinois-Melenikiotou (more here). On November 4th Karthik Natarajan (more here). On November 12th Alexandra Trower (content will be published December 8st).

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Questions Umit Subasi responded

In some European countries, by law, Boards have employee representatives. Is that good? 1 ????? ???? ????????

As a President or Board Member, what issues do you usually need to deal with? What decisions you need to make？Xiaoning Pan 2 ????? ???? ????????

As Board Member & President of multiple companies, what is the main difference when working in the US or Germany? Jack Yang 3 ????? ???? ????????

What makes the Asia-Pacific markets unique? Does Asia-Pacific have the most growth potential—if so, why? Jenny Gelbman ? ????? ???? ????????

Who is more important to a company: its customers or its employees? Liu Lu 刘陆 ? ????? ???? ????????

For those who applied for a job and had several interviews online, and those who traveled around the nation for the final round of interviews and didn't get a job, what Feedback would be appropriate? ? ????? ???? ????????

What was the most powerful Feedback you have gotten in your professional career and how did it impact your life? Katie Jiang ? ????? ???? ????????

Feedback generally isn't perceived as praise. It can be perceived as advice or criticism. At its best, is it observational? Caroline Arnos ? ????? ???? ????????

What tools do you use when you are receiving what you may feel is hard criticism?  Leila Rojas ? ????? ???? ????????

As a volunteer firefighter, have you ever received any feedback that you think is meaningful for other aspects of your life? Zhixuan Yu 1? ????? ???? ????????

If you could give your younger self your best piece of advice before entering the workforce, what would it be? Michelle Warman 11 ????? ???? ????????

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Special thanks

ümit Suba?? for joining us.

Michael Diamond, Natalie Meyer, and Riya Dedhia for helping me promote, host, and run the event.

To my students, who make this lecture my favorite part of the week.