Smart Technologies CEO Calls 600 Employees for Feedback

Nicholas Svensson, CEO of Smart Technologies, initiated a global calling campaign to connect with the company's 600-plus employees. Starting during the COVID-19 pandemic, Svensson sought to understand employee perspectives across 27 countries. The initiative revealed that the company was operating in 'transmit mode' rather than listening to staff.

This led to significant changes, including reducing monthly town halls to quarterly events and reversing organizational decisions based on worker feedback. Svensson found that direct conversations with engineers regarding project jumping resulted in higher engagement. The calls now serve as an annual audit, allowing the CEO to maintain a pulse on the organization and verify that management is aligned with staff realities.

The initiative began during the COVID-19 pandemic while Svensson was working from home. He questioned what employees were thinking and worrying about, leading him to call everyone. The company has employees in 27 countries, providing a diverse view of how workers perceive the economy and their specific roles.

Svensson noted that while calling employees is unconventional, it was his standard practice for running groups before becoming CEO. He believes every individual offers unique insights and ideas. The conversations serve a dual purpose: gathering feedback and reinforcing appreciation for the employees' work.

During these calls, Svensson discusses details of current projects to make a personal connection. For new employees, he inquires about their backgrounds and previous experience. However, there is a downside to this approach; employees often expect him to remember their names upon meeting in person, which proves challenging given the volume of staff.

The feedback calls exposed a critical flaw in the company's communication strategy. Svensson realized Smart Technologies was stuck in transmit mode, meaning they were broadcasting information without verifying if it was received or understood. After town halls, he would ask employees what was discussed, only to find they often could not recall the details.

This realization was astonishing to Svensson, who realized previous efforts had almost zero impact on communicating key messages. Consequently, the company adjusted its schedule. Monthly town halls were reduced to a quarterly frequency to ensure better focus and retention of information.

The core issue was a lack of receive mode. Management was not asking if messages were sinking in or if employees understood the directives. Svensson identified this as a basic leadership requirement that had been overlooked, emphasizing that employee engagement is vital since not everyone shares the same motivation or knowledge as the CEO.

The direct line to employees allowed for rapid correction of management errors. Last year, the company made organizational changes based on data, moving investments from one area to another. While the data suggested this was the correct move, employee feedback indicated it was a mistake.

Workers expressed disbelief at the decision, noting they were "just turning the corner." Svensson realized that the employees possessed emotional attachment and facts that did not appear in summary reports. Admitting the error, Svensson stated, "We made a mistake," and initiated a fix based entirely on the feedback received.

Another specific change involved the product development group. Engineers complained about jumping between projects and management changing its mind frequently. In response, Smart Technologies implemented a policy to finish a project once it is started.

This change was driven by the passion felt during individual conversations. The result was a more willing engineering team that engages fully with new projects without hesitation.

The calling campaign eventually created a fairness dynamic, with employees asking why colleagues were called while they were not. Svensson found that this broadened the scope of feedback significantly. Furthermore, the calls functioned as an internal audit mechanism.

After a one-on-one call, Svensson could contact the relevant manager with specific questions, already knowing the answers. This capability forced managers to ensure they were fully informed, as the CEO would inevitably know what the employees knew. Some managers questioned the necessity of the practice, but Svensson maintained that there should be no gap between what management knows and what employees know.

Currently, the calling process has evolved into an annual event, comprising approximately 10% of the CEO's job. Each call lasts 30 minutes. Svensson views this as essential for maintaining a "finger on the pulse" of the company, providing a sense of calm and situational awareness regarding organizational dynamics.