The Idea in Brief
Imagine demoralized employees cheering derisively as their departing CEO leaves the company. That’s what happened when the USS Benfold’s unhappy crew bid their captain farewell in 1997.
What could this scene possibly teach business people about leadership? The Benfold crew’s disgust was a symptom of the Navy’s retention problem: 40% of new recruits leave before their tour ends. Your company likely struggles just as hard to keep talented employees.
To retain top performers, you need leaders like Mike Abrashoff—the Benfold’s new captain. He replaced traditional command-and-control with quieter, more respectful, and engaging leadership.
How? He provided vision and values—then guided, coached, and even followed his people. He redeemed individual crew members—helping them become better people and better sailors. Under his leadership, his vessel set performance and retention records. Other ships’ sailors clamored to join his crew.
The Idea in Practice
Want to turn your own ship around? Take a page from this captain’s log:
Reject command-and-control . . . In today’s complex, technology-driven companies, no single person can manage all information and split-second decisions. Nor does one individual embody a company’s total skills and brain-power. Effective leaders provide a compelling vision and clear values—then guide their people to success.
. . . and learn how to listen. Treat each encounter with every individual as the most important thing in the world at that moment. Get to know your “crew” as individuals; you may discover brilliant ideas. Example:
When Abrashoff asked a seaman what he would change on the Benfold, the man suggested replacing her fittings with nonferrous metals that don’t rust quickly. The money saved by repainting the ship once—instead of six times—a year funded college courses for sailors. The fittings are now a navy standard.
Differentiate freedom from lack of discipline . . . Set limits and define unbreakable rules—e.g., the Benfold crew couldn’t waste taxpayers’ money or endanger their own or shipmates’ lives. Let people criticize and question each other—and you—as long as they do it with respect and support for your firm’s mission.
. . . then hand out trust and responsibility. If you’ve led well, now delegate. Example:
Engineering inspections are a ship’s central peacetime performance test. A botched test can ruin an officer’s career. Abrashoff demonstrated trust in his crew by delegating the riskiest inspection activity: casting off and heading seaward. The ship passed flawlessly.
Redeem employees during their toughest times. When people are at their worst, take your scariest chances. Example:
When three Benfold sailors had an ugly racial brawl, Abrashoff could have ejected them from the navy. Instead, he saved them. He tore them down during hours-long disciplinary proceedings, restricted them to the ship for 45 days, and docked their pay. Then he rebuilt them—showing them and crewmates their positive sides by, among other things, playing cards with them. One became a mentor to younger sailors; another went on to college; the third re-enlisted.
If employee retention is a headache for business, it’s a migraine for the U.S. Navy. Forty percent of the navy’s new recruits will wash out of the service before their four-year tours are up. That’s not just bad for the military’s effectiveness, it’s expensive: it costs taxpayers about $35,000 to recruit one sailor and send him through nine weeks of boot camp. Of those who make it through their first hitch, only 30% sign on for a second term.
