You’ve heard the phrase, “why do bad things happen to good people” all your life. The phrase is fundamental to many people’s approach toward faith. The question is often a faith “qualifier”. When people ask the question it usually manifests as a challenge. The “ask” is rarely a true question in search of an answer, but more of an accusation … of fate … circumstances and God I suppose. It’s often an expression of exasperation, a defiant fist raised and shaking toward the heavens.
I wonder; what is “bad” and what is “good” in the context of that question? Considering the whole of it, I don’t think the question really addresses the root issue. Usually, “bad” has to do with extraordinary physical or mental suffering and loss. But that is not entirely accurate. In suffering, “bad” is relative. In goodness, “good” is relative. It doesn’t matter how good I think I am … there will always be found someone “gooder” than I. In that relative sense then, everyone is good – except, perhaps, that one poor soul at the end of the human relativity line!
If something “bad” happens to me, does the question matter? It certainly will from “my” perspective. But if my “bad” is not another’s “bad” then the matter is irrelevant except for me. If “bad” and “good” are then relative, let’s remove bad and good from the equation. We are left with, “Why do “things” happen to “people?”. That does simplify things a bit.
If “bad” is death or loss, then I guess we will have to chalk-up all of life as “bad” - if loss is the focus. Could we refine and simplify the question further to, Why does “life” happen to people? A great question but a bit too abstract for this discussion. A man I used to do business with in Turkey gave me a gift with this inscription; “When the heart weeps for what it has lost, the soul laughs for what it has found.” ~ a Sufi aphorism. ~
I’ve met a few people in my life who have a different perspective on the whole thing. They are people who have endured or who are enduring a prolonged “bad” time. I want to tell you about one. He’s an older gentleman. His wife was failing. He was enduring a “bad” time as far as I’m concerned. Her terminal cancer had her bed-ridden and he was her primary caregiver. His life was a cycle of visceral routines serving his wife’s every personal need as she slipped away. He went about his day quietly, pleasantly and never complained. This fellow’s mission and purpose in life had become his wife’s comfort and dignity. A bad time from my perspective – a call to serve from his.
I think he’s a “good” man. He certainly acts good. He’s courteous, he dresses well. I’ve never heard him swear. So, of course, that means he has never sworn, never been cross with his wife, has never been impatient, has never cried out “why!”. He’s always good – around me. Perhaps he’s just a really good actor - a poser. I say that because I’m a poser. We’re all posers.
Anyway, I asked him once how he was “bearing-up” through it all and he blew me away by telling me (in a hushed voice that trembled ever so slightly – reverently) that he believed that he was undergoing what he was to prepare him to help others who may one day undergo the same experience. wow.
Why do bad things happen to good people? Let’s re-phrase that; Why are those who will be used to help others taken through a trial that prepares them to serve others? Why? Does it really matter why? I’m just thankful that they are and I pray that they do endure it. But if I had to answer why, I’d say; because they bless us. And as far as “good people” goes, I prefer the word “grace” … people of grace. Grace: Pleasing, showing favor, beauty of form, composed, decent, thoughtful of others. I saw those qualities in that gentleman. He displayed a wonderful form.
I believe that we are all uniquely and purposefully gifted. The circumstances of life call-up our gifts into service. “Circumstances” present themselves as loss, change, hardship or opportunity – all depending on your perspective. If we relax our puny grip on life, if we lower our resistance and let the circumstances flow and submit ourselves to the moment at hand – we may find that there flows through us an energy and power that amplifies our gifts in wonderful ways. We find endurance and authentic purpose.
A close friend often describes life as a tapestry made strand by strand in which we submit the warp of our life to the weft of the master weaver’s hand. One day we will be able to stand back and behold the work of art that has been our life that day-by-day we were too close to perceive. A life of deeds and service performed through us rather than by us.
Well, it’s a new year. So, Happy New Year! May it be full of grace, endurance, purpose and challenges converted into service to others.
“If you’re going through hell … keep going!” ~ Winston Churchill (of course …) ~
All the Best!
Bill
Thursday, December 31, 2009
Monday, November 30, 2009
Relevance & Business Plans
Having enduring two years of bewilderment and blown confidence in things larger than ourselves at least two camps have emerged; those finding solutions in self-sufficiency and those yielding action to others “more competent”. Thankfully the sun rises and falls independent of the motives or efforts of any man or government.
The media offers facts wrapped in opinions backed by convincing commentary from countless analysts and talking heads. All claims are headlined - “V” Recovery, “W” Recovery, “Square Root” Recovery, hoard gold bullion! The backlash has started and people are beginning to “tune-out”. An old saying comes to mind – “To thine own self be true”. At the end of the day, there is little connection between Wall Street (except, maybe, in commodities) and the day-to-day matters of small businesses. Small Businesses (SBs) are the burden bearers of the developing recovery. With the agility to re-work their business plans SBs can make and implement tough decisions, leverage core competencies in new areas, re-think to diversify and pull levers to wring-out profits.
With uncertainty and lumbering inactivity abounding, opportunities are being seized by a few contrarians. Rather than wait for a return of “what was” or a “sure-thing”, consider the SB after-market auto parts manufacturer that viewed a reorganized Detroit, high unemployment and tightened consumer credit as signals that new car sales would decline. Reasoning that aging cars need repair this SB revamped for growth and injected fresh, focused and aggressive management talent. That company has gained market share and has diversified into related markets – e.g. commercial vehicle platforms. To those who try and are met with resistance, “The door of opportunity swings on hinges of opposition.” Push harder! Know what you know and act on it.
Relevant businesses have a role and a plan. They are players. Relevance rules markets. The capstone of any plan is a Vision (visualized outcome) to which an enterprise takes an ownership position with a Mission Statement that lends itself to a “Summary Phrase”. Your eyes rolled – not this again! Compare your statements to those of a humble not-for-profit.
Cite: Good Will Industries – you know - the stores that are like Salvation Army Thrift Shops right? Wrong! Their Vision: “Everyone in our community has the opportunity to achieve their fullest potential and to participate in a productive life.” Mission: “Provides training and career opportunities for people with barriers to employment.” Phrase: “Give a hand – not a hand-out”.
Good Will Industries has a focus, a role in society, clarity of purpose - relevance! Do your statements do that for your enterprise? Without these foundations you will forever find yourself, as Tommy Lasorda said, “ watching what happened or wondering what happened - rather than making it happen”.
"If you don't know where you are going, you will wind up somewhere else.” –Yogi Berra
“Outside In Thinking”- and what’s wrong with it. No company operates in a vacuum but Gary Harpst (Six Disciplines – Execution Revolution) points out that we fall into the trap of “Outside-In-Thinking” because (I paraphrase)“we’re flooded with information and become preoccupied with what everyone else is doing rather than focusing on what’s going on in our own shop – ‘marching to our own beat’ as it were. This focusing outward makes us good at being reactive but it flies in the face of “inside first” thinking.” Result: abandoning the plan and falling in with the “herd”. I’m reminded of the Serenity Prayer;
“God, grant me the serenity to accept the things I cannot change;the courage to change the things I can; and the wisdom to know the difference.”
“If your ship doesn’t come in – swim out to it.”- Jonathan Winters
Beyond “Business Plans 1.0”By now you’ve already diligently re-scrubbed your competitive market analysis, SWOT, sales & financial forecasts, lean initiatives, new product developments, product life cycles, vendor and customer supply chains - etcetera. It’s agreed that needed growth must come from new ideas and adaptations to bring profitable “top-line” revenues cascading into our income statements – and surely - bringing job growth. Caveat – productivity is adversarial to (not against) the labor cost component - - -
The conventional lineup of Business Plan “elements”, however, may not provoke enough sustained leadership thought and management team planning and execution in ways that deliver the desired “outside of the box” results. Maybe we can add a few variables …
“It’s a small world after all” & your Business Plan.Receiving news that spans the globe, we develop opinions on cultures, regimes and markets we’ll likely never visit – yet we don’t fancy ourselves macro-economists. So must you teach a course on GDP, Balance of Trade, the Yuan, Free Trade, Fair Trade, Protectionism, Trade Sanctions or what have you to export a product? Of course not. You need a product or service that customers will buy at a U.S dollar based price they will pay. A few “helpers” known as agents (not secret agents) facilitate the details. The details are still 1) finding customers, 2) shipping product and 3) you getting paid. Some small/medium companies derive a third or more of their revenues from exports.
Not so fast you say. There’s cost of freight, language barriers, strange paperwork, letters of credit and fees, fees, fees you say. I say if you don’t explore exports you’re denying yourself. There’s a learning curve - but it’s not rocket science. The U.S. Dollar is significantly weak and likely to stay that way for awhile. That’s a big advantage. If you’re a B-to-B the opportunities are even better in my opinion.
Revenue growth from Exports
2010 can be your year to start exporting – if you plan it. Forget about Asia and start with the Western Hemisphere and Europe. By all means ignore countries with ridiculous import tariffs or those that “fix” their currency to thwart imports. THINK LOCAL-ACT GLOBAL. Do what makes sense for your local business in the global market.
Explore. Pick a market, find an agent (many cover several countries) and connect with a freight forwarder. Ask your bank to get involved on the credit side. Identify your product harmonized tariff codes (easy to get). Get acquainted with 2.2046 (converts lbs. to kgs.) and figure out how much of your “stuff” can be “stuffed” into a 20 or 40 foot container. Ask questions. Take an order and ship product. Collect money. All else will follow.
Tip: To identify a prospective overseas sales agent, ask several prospective customers who they respect most amongst the sales reps that call on them. That’s how I’ve done it.
“Never be ashamed to admit you were wrong. You’re only saying that you’re wiser today than you were yesterday.” - Dave Gilpin
Enterprise Valuations & Exit Strategies
When we think of exit strategies we think of VCs and Private Equity Groups. I agree that great companies are not created to flip, but to build and make a difference. But, the time to value a business is not when someone knocks on your door with an offer to purchase. More importantly, periodic “Enterprise Valuations” to benchmark against business plan trajectory goals keep a business focused on value enhancing activities. Stage-gated hurdles built into the business plan (mini exit strategies) focus you on objective plateaus in your growth and anticipate developing market forces (e.g. emerging market opportunities as well as competitors). Most business owners have a distorted perception of the value of their business. Work periodic enterprise valuations into your business plan.
I plan more discussion on the topic of Relevance & Business Plans in the next blog posting. I am a successful CEO and Management Consultant ready for my next signature leadership role and this blog is a service to my network.
And so 2009 proceeds to its close! As always - I wish you all the best and with that a very Merry Christmas and a happy, healthy and prosperous New Year!
Bill
The media offers facts wrapped in opinions backed by convincing commentary from countless analysts and talking heads. All claims are headlined - “V” Recovery, “W” Recovery, “Square Root” Recovery, hoard gold bullion! The backlash has started and people are beginning to “tune-out”. An old saying comes to mind – “To thine own self be true”. At the end of the day, there is little connection between Wall Street (except, maybe, in commodities) and the day-to-day matters of small businesses. Small Businesses (SBs) are the burden bearers of the developing recovery. With the agility to re-work their business plans SBs can make and implement tough decisions, leverage core competencies in new areas, re-think to diversify and pull levers to wring-out profits.
With uncertainty and lumbering inactivity abounding, opportunities are being seized by a few contrarians. Rather than wait for a return of “what was” or a “sure-thing”, consider the SB after-market auto parts manufacturer that viewed a reorganized Detroit, high unemployment and tightened consumer credit as signals that new car sales would decline. Reasoning that aging cars need repair this SB revamped for growth and injected fresh, focused and aggressive management talent. That company has gained market share and has diversified into related markets – e.g. commercial vehicle platforms. To those who try and are met with resistance, “The door of opportunity swings on hinges of opposition.” Push harder! Know what you know and act on it.
Relevant businesses have a role and a plan. They are players. Relevance rules markets. The capstone of any plan is a Vision (visualized outcome) to which an enterprise takes an ownership position with a Mission Statement that lends itself to a “Summary Phrase”. Your eyes rolled – not this again! Compare your statements to those of a humble not-for-profit.
Cite: Good Will Industries – you know - the stores that are like Salvation Army Thrift Shops right? Wrong! Their Vision: “Everyone in our community has the opportunity to achieve their fullest potential and to participate in a productive life.” Mission: “Provides training and career opportunities for people with barriers to employment.” Phrase: “Give a hand – not a hand-out”.
Good Will Industries has a focus, a role in society, clarity of purpose - relevance! Do your statements do that for your enterprise? Without these foundations you will forever find yourself, as Tommy Lasorda said, “ watching what happened or wondering what happened - rather than making it happen”.
"If you don't know where you are going, you will wind up somewhere else.” –Yogi Berra
“Outside In Thinking”- and what’s wrong with it. No company operates in a vacuum but Gary Harpst (Six Disciplines – Execution Revolution) points out that we fall into the trap of “Outside-In-Thinking” because (I paraphrase)“we’re flooded with information and become preoccupied with what everyone else is doing rather than focusing on what’s going on in our own shop – ‘marching to our own beat’ as it were. This focusing outward makes us good at being reactive but it flies in the face of “inside first” thinking.” Result: abandoning the plan and falling in with the “herd”. I’m reminded of the Serenity Prayer;
“God, grant me the serenity to accept the things I cannot change;the courage to change the things I can; and the wisdom to know the difference.”
“If your ship doesn’t come in – swim out to it.”- Jonathan Winters
Beyond “Business Plans 1.0”By now you’ve already diligently re-scrubbed your competitive market analysis, SWOT, sales & financial forecasts, lean initiatives, new product developments, product life cycles, vendor and customer supply chains - etcetera. It’s agreed that needed growth must come from new ideas and adaptations to bring profitable “top-line” revenues cascading into our income statements – and surely - bringing job growth. Caveat – productivity is adversarial to (not against) the labor cost component - - -
The conventional lineup of Business Plan “elements”, however, may not provoke enough sustained leadership thought and management team planning and execution in ways that deliver the desired “outside of the box” results. Maybe we can add a few variables …
“It’s a small world after all” & your Business Plan.Receiving news that spans the globe, we develop opinions on cultures, regimes and markets we’ll likely never visit – yet we don’t fancy ourselves macro-economists. So must you teach a course on GDP, Balance of Trade, the Yuan, Free Trade, Fair Trade, Protectionism, Trade Sanctions or what have you to export a product? Of course not. You need a product or service that customers will buy at a U.S dollar based price they will pay. A few “helpers” known as agents (not secret agents) facilitate the details. The details are still 1) finding customers, 2) shipping product and 3) you getting paid. Some small/medium companies derive a third or more of their revenues from exports.
Not so fast you say. There’s cost of freight, language barriers, strange paperwork, letters of credit and fees, fees, fees you say. I say if you don’t explore exports you’re denying yourself. There’s a learning curve - but it’s not rocket science. The U.S. Dollar is significantly weak and likely to stay that way for awhile. That’s a big advantage. If you’re a B-to-B the opportunities are even better in my opinion.
Revenue growth from Exports
2010 can be your year to start exporting – if you plan it. Forget about Asia and start with the Western Hemisphere and Europe. By all means ignore countries with ridiculous import tariffs or those that “fix” their currency to thwart imports. THINK LOCAL-ACT GLOBAL. Do what makes sense for your local business in the global market.
Explore. Pick a market, find an agent (many cover several countries) and connect with a freight forwarder. Ask your bank to get involved on the credit side. Identify your product harmonized tariff codes (easy to get). Get acquainted with 2.2046 (converts lbs. to kgs.) and figure out how much of your “stuff” can be “stuffed” into a 20 or 40 foot container. Ask questions. Take an order and ship product. Collect money. All else will follow.
Tip: To identify a prospective overseas sales agent, ask several prospective customers who they respect most amongst the sales reps that call on them. That’s how I’ve done it.
“Never be ashamed to admit you were wrong. You’re only saying that you’re wiser today than you were yesterday.” - Dave Gilpin
Enterprise Valuations & Exit Strategies
When we think of exit strategies we think of VCs and Private Equity Groups. I agree that great companies are not created to flip, but to build and make a difference. But, the time to value a business is not when someone knocks on your door with an offer to purchase. More importantly, periodic “Enterprise Valuations” to benchmark against business plan trajectory goals keep a business focused on value enhancing activities. Stage-gated hurdles built into the business plan (mini exit strategies) focus you on objective plateaus in your growth and anticipate developing market forces (e.g. emerging market opportunities as well as competitors). Most business owners have a distorted perception of the value of their business. Work periodic enterprise valuations into your business plan.
I plan more discussion on the topic of Relevance & Business Plans in the next blog posting. I am a successful CEO and Management Consultant ready for my next signature leadership role and this blog is a service to my network.
And so 2009 proceeds to its close! As always - I wish you all the best and with that a very Merry Christmas and a happy, healthy and prosperous New Year!
Bill
Thursday, October 29, 2009
Rubicons
"Whenever you see a successful business, someone once made a courageous decision." ~ Peter Drucker ~We are at an inflection point. Businesses are at crossroads requiring decisions – decisions that involve risk. Risk, always there, has been aroused and the implications of mismanaged risk decisions are cause to pause. Misfortune from benign external forces is one thing - but from our own actions - quite another. Cash is scarce and decisions risk cash. Lenders now require that we clear more difficult and time consuming due-diligence hurdles. Your credit line – if you still have one – has been given a crew-cut and is no longer the no-questions-asked, drive-up treasury it once was. Opportunities come and go quickly. There is a cost of lost opportunity. Indecision is a decision itself. Arguably, indecision can deny us of an opportunity or present another as the kaleidoscope of the market spins. It has been said that indecision is the worst decision. And we know that we are all where we are as a result of our decisions.
Decisions bring consequences and the cutting off of other options. Level of confidence and uncertainty amidst situations in which we have no past experience make decision forks hard to navigate. This economy is about uncertainty. Heck - it’s a complex decision whether or not to use hard cash, the ATM card or a credit card to buy gas!
Decisions themselves change the circumstances that require them. With a decision comes commitment, focus, energy and a sense of urgency to act that did not exist before the decision. These “after-effects” increase the likelihood of success – a point to ponder.
When Julius Caesar crossed the River Rubicon, his decision was one for which there was no turning back and he declared, “The die is cast.”. Our decisions have inherent to them a certain freedom. Post decision course corrections may be made. New data presents itself. Results of the decision and its effects unfold and become a new known reality. Uncertainty becomes certainty. Whatever you decide – proceed wholeheartedly.
“In a minute there is time, for decisions and revisions which a minute will reverse.” ~ T.S. Eliot ~
Personnel decisions in a recession. Market uncertainty and liquidity are hatching new approaches to organizational structure. There have been downsizing “rebounds” but for the most part lay-offs are permanent - - - the “jobless recovery”.
Decision: You have completed a difficult layoff after avoiding it for far too long. You wish you had done it sooner. The company is still a little shaky but it is stabilizing and the new “lean team” has settled down. Morale has rebounded and a new culture has taken hold. Negativity has been replaced with cautious optimism; camaraderie is surging, entitlement mentalities have been replaced with focus on the work at hand and a sense of “team”. Good stuff. A surge of orders this month has you wondering – do I call back some of the layoffs or do I authorize overtime to get through it? What if the sales level is sustained? Authorizing overtime will add to cost but calling back layoffs may undo some of the positive culture change achieved. Do we dare increase our selling price to offset an overtime decision? Indecision will have its result as will either of the alternative decision options. Make the call and adjust to the aftermath.
Hiring freezes have extended to middle thru senior management needs associated with emerging opportunities. Rather than commit to an expensive hire, consultants are sought to bridge gaps in subject matter experience and expertise. This is common in the small business sector (and some heretofore medium businesses are realizing that they are now small businesses …). The depth of small organizations is necessarily thin. A “turning point” growth opportunity may require the addition of new management talent to execute and follow-thru on a growth strategy. A “chicken and egg” scenario presents itself; do I grow first then add talent or add talent in order to achieve sustainable growth? Recruiting AFTER will deny the enterprise of valuable experience borne from individual association with the initiative execution. A “post execution” hire may disrupt momentum in the critical initial stages - - - a risk factor. Many businesses are refraining from the expense of such recruitments. But it’s a Catch 22 with an expense of its own.
Small and micro-businesses often don’t have a formal Board of Directors to consult for business guidance and advice – especially in “no sure thing” scenarios. It’s lonely out there and a good consultant can serve as both a subject matter expert and a trusted colleague with the honesty and objectivity of an emotionally detached outsider. Consultants should offer options and visualizations of outcomes that you cannot perceive given your position “amongst the trees”.
“When we ask for advice, we are usually looking for an accomplice.”
~ Marquis de La Grange ~
For specific definable skill-sets in the technical and general labor force, temporary hires are a good bet that can be converted inexpensively when needed. Again – the “arms length” in case of a negative market turn – a “half-decision”.
Consolidations in manpower often result in the promotion of “retained” employees into key roles. Here the “Peter Principal” will rear its ugly “heads”. Head #1: the cost of the mistake itself in the unmet expectations of the employer. Head #2: the cost of the unmet expectations of the promoted employee. Head #3: the cost to general employee morale and possible turnover if things go wrong – the dynamics of co-workers becoming subordinates. Such moves require deft leadership advocacy and follow-thru.
"Employee differentiation is the key to performance culture, and while everyone is created equally, they don't perform equally."
~ Bill Conaty (SVP HR – General Electric) ~The above quotation alludes to the need to be deliberate in employee assignments and reassignments and to take the time to appropriately “profile” to improve the likelihood of success – square pegs/round holes. The properly placed employee should draw energy from their work and effort – not the other way around.
Hire UP. If “A” level players only hire “B” levels --- that will lead to “B”s hiring “C”s who then hire “D”s and pretty soon you have an organization of “F”s. Try to do a 4.0 job with that 1.0 outfit. Culprit: Insecurity, job security. Cost: Enterprise security.
Business Plan Decisions. It’s always a good time to gather up your data, dust off your vision and do a business planning retreat with your Board or key senior staff – your decision makers. In December I’ll lead off with some elaboration on Business Plans.
”Once you make a decision, the universe conspires to make it happen.”
~ Ralph Waldo Emerson ~
Decisions bring consequences and the cutting off of other options. Level of confidence and uncertainty amidst situations in which we have no past experience make decision forks hard to navigate. This economy is about uncertainty. Heck - it’s a complex decision whether or not to use hard cash, the ATM card or a credit card to buy gas!
Decisions themselves change the circumstances that require them. With a decision comes commitment, focus, energy and a sense of urgency to act that did not exist before the decision. These “after-effects” increase the likelihood of success – a point to ponder.
When Julius Caesar crossed the River Rubicon, his decision was one for which there was no turning back and he declared, “The die is cast.”. Our decisions have inherent to them a certain freedom. Post decision course corrections may be made. New data presents itself. Results of the decision and its effects unfold and become a new known reality. Uncertainty becomes certainty. Whatever you decide – proceed wholeheartedly.
“In a minute there is time, for decisions and revisions which a minute will reverse.” ~ T.S. Eliot ~
Personnel decisions in a recession. Market uncertainty and liquidity are hatching new approaches to organizational structure. There have been downsizing “rebounds” but for the most part lay-offs are permanent - - - the “jobless recovery”.
Decision: You have completed a difficult layoff after avoiding it for far too long. You wish you had done it sooner. The company is still a little shaky but it is stabilizing and the new “lean team” has settled down. Morale has rebounded and a new culture has taken hold. Negativity has been replaced with cautious optimism; camaraderie is surging, entitlement mentalities have been replaced with focus on the work at hand and a sense of “team”. Good stuff. A surge of orders this month has you wondering – do I call back some of the layoffs or do I authorize overtime to get through it? What if the sales level is sustained? Authorizing overtime will add to cost but calling back layoffs may undo some of the positive culture change achieved. Do we dare increase our selling price to offset an overtime decision? Indecision will have its result as will either of the alternative decision options. Make the call and adjust to the aftermath.
Hiring freezes have extended to middle thru senior management needs associated with emerging opportunities. Rather than commit to an expensive hire, consultants are sought to bridge gaps in subject matter experience and expertise. This is common in the small business sector (and some heretofore medium businesses are realizing that they are now small businesses …). The depth of small organizations is necessarily thin. A “turning point” growth opportunity may require the addition of new management talent to execute and follow-thru on a growth strategy. A “chicken and egg” scenario presents itself; do I grow first then add talent or add talent in order to achieve sustainable growth? Recruiting AFTER will deny the enterprise of valuable experience borne from individual association with the initiative execution. A “post execution” hire may disrupt momentum in the critical initial stages - - - a risk factor. Many businesses are refraining from the expense of such recruitments. But it’s a Catch 22 with an expense of its own.
Small and micro-businesses often don’t have a formal Board of Directors to consult for business guidance and advice – especially in “no sure thing” scenarios. It’s lonely out there and a good consultant can serve as both a subject matter expert and a trusted colleague with the honesty and objectivity of an emotionally detached outsider. Consultants should offer options and visualizations of outcomes that you cannot perceive given your position “amongst the trees”.
“When we ask for advice, we are usually looking for an accomplice.”
~ Marquis de La Grange ~
For specific definable skill-sets in the technical and general labor force, temporary hires are a good bet that can be converted inexpensively when needed. Again – the “arms length” in case of a negative market turn – a “half-decision”.
Consolidations in manpower often result in the promotion of “retained” employees into key roles. Here the “Peter Principal” will rear its ugly “heads”. Head #1: the cost of the mistake itself in the unmet expectations of the employer. Head #2: the cost of the unmet expectations of the promoted employee. Head #3: the cost to general employee morale and possible turnover if things go wrong – the dynamics of co-workers becoming subordinates. Such moves require deft leadership advocacy and follow-thru.
"Employee differentiation is the key to performance culture, and while everyone is created equally, they don't perform equally."
~ Bill Conaty (SVP HR – General Electric) ~The above quotation alludes to the need to be deliberate in employee assignments and reassignments and to take the time to appropriately “profile” to improve the likelihood of success – square pegs/round holes. The properly placed employee should draw energy from their work and effort – not the other way around.
Hire UP. If “A” level players only hire “B” levels --- that will lead to “B”s hiring “C”s who then hire “D”s and pretty soon you have an organization of “F”s. Try to do a 4.0 job with that 1.0 outfit. Culprit: Insecurity, job security. Cost: Enterprise security.
Business Plan Decisions. It’s always a good time to gather up your data, dust off your vision and do a business planning retreat with your Board or key senior staff – your decision makers. In December I’ll lead off with some elaboration on Business Plans.
”Once you make a decision, the universe conspires to make it happen.”
~ Ralph Waldo Emerson ~
“A real decision is measured by the fact that you’ve taken a new action. If there’s no action, you haven’t truly decided.”
~ Anthony Robbins ~
Publishing “Bill's View From The Crow’s Nest” keeps me close to subjects that are important to personal life & business success. It is my pleasure gathering, digesting, struggling to condense and share the contents of each issue with you. I plan to continue to publish after I land in my next full time “gig”. Happy Thanksgiving, God bless you and - all the best!
Bill
Friday, September 25, 2009
On Business Strategies, Tactics & Luck
Writing this blog is a double-edged sword. It's easy to deal out advice - it's quite another thing to walk the talk and take that advice. I'll never be perfect, but I will endeavor to be a doer and not just a sayer in all things - that my motto would be; "do as I say and as I do". For that I know of One perfect example to follow.
October 2009 - The business climate is improving but I still see significant reluctance to "get on with it". Tight credit is indeed an impeding factor but I know a lot of good, responsible Lenders who want to do business - but who will not take willy-nilly risks with businesses who don't have a sound business plan and realistic revenue (note that I did not write "sales") forecast. I'm reminded of the saying, "If not you, who? If not now, when?" Where I DO see gumption and a mind to take action is in the smaller businesses. To them I say - make hay and take marketshare while your management-by-absolute-certainty, waiting-for-the-market-to-return, risk-averse, fearful, lumbering larger competitors procrastinate.
The 2009 PGA Tour® regular season may be over and the Fedex® Cup awarded – but professional business is just getting back into the swing of things.
“I love to play golf, and that's my arena. And you can characterize it and describe it however you want, but I have a love and a passion for getting that ball in the hole and beating those guys.” – Tiger Woods
In July - for those on my email circulation only list which has since transitioned to now include this blog - the title was “Execution”. In it I borrowed from Gary Harpst’s, Six Disciplines® – Execution Revolution (© 2008, Six Disciplines® Publishing). I’m going to go back there for a moment and blend what Harpst brings with some related information I’ve uncovered from Guy Kawasaki (of Apple Macintosh fame) who now leads Garage Venture Partners® – and show them side-by-side.
Take a close look at the presentation below. To the left, a visual from Garage Venture Partners® – to the right a visual from Gary Harpst (copyright credits provided above). Note my title at the top:
In July - for those on my email circulation only list which has since transitioned to now include this blog - the title was “Execution”. In it I borrowed from Gary Harpst’s, Six Disciplines® – Execution Revolution (© 2008, Six Disciplines® Publishing). I’m going to go back there for a moment and blend what Harpst brings with some related information I’ve uncovered from Guy Kawasaki (of Apple Macintosh fame) who now leads Garage Venture Partners® – and show them side-by-side.
Take a close look at the presentation below. To the left, a visual from Garage Venture Partners® – to the right a visual from Gary Harpst (copyright credits provided above). Note my title at the top:
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I assure you that all your work to achieve a position in the profit zone will inevitably result in competitor pursuit that will inexorably draw you into the commodity zone. Unless you are deliberate to innovate and pursue new niches - WHILE taking profits – you will be sent to the “fire-fighting” corner. It’s classic. To stay in sector II as a strong Unique and strong Value producer – leadership must balance Strategy and Execution. Tough decisions - like dropping tired (though familiar) and perhaps “dear” product lines (you may even believe that some are your very corporate identity) and seeking new and unfamiliar markets - will be required. Small business shows us the way. We are beyond a mass-production based economy and have moved into mass-specialization. Find your specialty, your unique competency (your arena) and leverage it in as many applications as you can - adapting it to as many profitable markets as you can perceive.
This is not comfort zone stuff. Be honest. Where are you on those visuals?
Did you ever think that the core competencies and what can make your organization come alive in its arena may not necessarily be described by your current product line? Rather, they may be better described by your foundational technology, special methods, know-how, networks and market sector expertise. Looking at it that way may liberate you to discover new markets and needs that you can uniquely and profitably satisfy with new products or adaptations of existing ones. Don’t listen to “dead-wood” executives who blame everything on “unsolvable” circumstances like the economy, competition, uneven playing fields, government – yada yada – resigning themselves to forces greater and unknowable. “Maybe if we just hang on – cut more costs, discount again - the market will return”. Heard that tune? What market is that? Demand some imagination.
“Consistency is the last refuge of the unimaginative.” - Oscar Wilde
SHIFTING TO THE TACTICAL - - -
The Deming continuous process improvement PLAN > DO > CHECK > ACT cycle of management works well in most process environments. The esoterics of continuous process improvement, data mining & evaluation, SPC and transitions to “lean” are the “good” stuff of Production Management, Quality Engineering and “Black Belt” excellence. These disciplines fall into the realm of the Profit Taking Zone/Quadrant III – or - the anteroom of Quadrant IV – Fire Fighting. The competitive landscape brings daily competitor and customer maneuvers, changing perceptions of value and pressures that beckon us to focus all of our attention in Quadrant III. Despite pro-active rhetoric and intent, much of what businesses do is in response to unforeseen, mischievous activity. Life is a hale storm of distractions! Consider the atmosphere of a patrolling fighter pilot and his anxiety when his pristine, uncontested aerodrome is encroached by an adversary who wants to plant him and his smoking wreck of a plane into the dirt. Pro-activity needs a champion and some tactical teeth!
Colonel John Boyd (USAF) was an outstanding fighter pilot during the early years of jet propulsion fighter aviation and he is credited with being the father of the modest but nimble and lethal F-16 warplane. Google the Colonel. Boyd also brought us “OODA Loops”. No, it’s not a cereal.
Boyd’s a tactical Deming. OODA refers to a fluid, action-oriented state of mind that integrates Observation with Orientation with Decisions with Actions. The tactical fighter pilot’s version of; Plan, Do, Check, Act. Observe>Orient>Decide>Act. In that order - no element left out. Every observation leads to orientation and a decision – then action – a maneuver. The quicker the better. Some call it “fast cycling”. It keeps you on your toes. Thomas M. Hout of Boston Consulting Group said, “The OODA Loop limbers up your organization. It keeps you constantly worried about the next cycle.” Tighten the loop, outmaneuver, throw-off your opponent – turn inside his radius of ability. “Disorient” your opponent with pro-action. If one competitor employs OODA thinking – it rules on that field of contest. This and the data that comes from observation and orientation of your business in its competitive markets is the “esoteric good stuff” of your marketing tacticians, your sales force and your product development talent. Lead them to it. Thank Colonel Boyd.
On LUCK:
“Luck is what happens when preparation meets opportunity.” - Coach Darrell Royal
“Fortune brings in some boats that are not steered.” - William Shakespeare
“Some folk want their luck buttered.” - Thomas Hardy
“Shallow men believe in luck. Strong men believe in cause and effect.” - Ralph Waldo Emerson
“The harder I work, the luckier I get.” - Sam Goldwyn
What’s luck got to do with it? Napoleon said that he would rather have lucky generals than good ones. What made them lucky? Some historians say that Napoleon had a bad day at Waterloo – does that make Wellington lucky? He can thank the Prussians. And speaking of Prussians, Helmuth von Moltke (Chief of Staff, Prussian Army 1857-1887) considered it the prime responsibility of military leadership to improve their luck factor thru “extensive preparation” for all possible outcomes. His quote, “No plan of operations extends with certainty beyond the first encounter with the enemy's main strength.” (e.g. no plan survives initial contact with the enemy). All of the great strategists from Sun Tzu to Carl von Clausewitz considered the luck factor. I hope this issue of “View From The Crow’s Nest” brings some tools to bear on the topic.
So, eyes on the ball, swing smoothly, follow through and may your results be – high and to the right!
By the way - I’m a successful CEO available to lead a small to medium sized commercial enterprise in transition, recovery or in its growth phase.
All the best!
Bill
Sunday, August 30, 2009
- A Call To Captains of Industry -
Ready or not, Autumn is here. It’s time to evaluate the year and the plan and then project for the future. For some companies it’s already 2010. For some, this time of year (especially this year) will be a scramble to execute the annual “plan” before elements of it and its goals must be written-off. The 2009 “plan” will soon be “overtaken by events” …
“We’re drowning in information and starving for knowledge.”Rutherford B. Rogers, Yale University Librarian – 1985 (before the internet explosion …)
At a recent seminar the presenter recalled a professor of one of his business courses who challenged his students to pursue failure early in their careers. Odd advice on the surface. The message – face yours fears head on - take risks. Question: How many people reconfigured their 401(k) portfolios to “max. aggressive” back in March because they believed that a recovery was certain? Crazy? In mid February it would have seemed madness to invest $100,000 in Ford Motor Company stock. Such an investment would have been worth over half a million dollars a few weeks ago. Hindsight you say. I know a man who knows and studies Ford stock, owns Ford cars and knows how that company was and is different than the rest of the automobile companies – he invested when F was $1.50/share - he did “okay”. He invested in what he knew and believed.
Do you run an organization? Are you the expert for running it? Do you have to make judgments about those who do? What do you know and in what do you believe? As we emerge from the recession we are all like fresh graduates – it’s a clear, clean table we have before us - - - the Zamboni has just left the ice! So know what you know, believe in what you believe, act, pursue success and face failure with fearlessness.
Sometimes we forget that the greatest take-away from college was that we learned how to learn. We also learned how to get up after falling down and we learned that we could always change our minds. Now’s the time – it is an uphill pursuit and there are new rules that will require us to do things differently with perseverence, patience and the freshness of youthful fearlessness. That perspective should be exhilharating!
“Love gave me confidence and adversity gave me purpose.”Eunice Kennedy ~ Rest in Peace
The recession has stripped the varnish off and exposed many a management style. Openness, Loyalty, Integrity have all been tested. Nothing has been lost on employees who have been carefully watching - noticing every move made by management in the breech. The present unemployment rate is a dam holding many employees in place – biding their time. When that dam opens some enterprises may suffer an exodus of disgruntled employees (some justified by their action and some not). There is a risk of losing key individuals upon whom were heaped the work of layed-off colleagues for the good of the enterprise. Managers may think – “fine, from the frying pan into the fire”. Before the year is out – it’s a good idea to genuinely recognize where recognition is due. Intelligent employees understand the financial contraints of the economy - so money need not be the only currency of gratefullness. When profits allow – have a memory.
“The six most important words: I admit I made a mistake. The five most important words: You did a good job. The four most important words: What is YOUR opinion? The three most important words: If you please. The two most important words: Thank You. The one most important word: We. The least important word: I.” - Author unknown
This calls for a segue to a discussion on stakeholders. Who are the stakeholders? Years ago while instructing young Ensigns headed for the fleet I was often asked for one pearl of wisdom that would guide them as they entered their new world afloat. I found myself repeating this advice, “In everything you do, ask yourself - what would the Captain do?” An easy statement to casually make, but a leadership concept that actually requires great effort on the part of the Captain and organizational culture, through a chain of command, that enables each crewmember to follow and serve with competence and WITHOUT thwarting creativity, ingenuity and pro-activity amidst myriad variables and unplanned circumstances – a mouthful. True competency is manifested in professional agility. I gave that “sage” guidance knowing that the Captains out there and the Navy would do their part.
What would the Captain do? What would the CEO do? In few other places is the concept of total responsibility and accountability so clear than in command of a ship at sea. The Navy compounds the responsibility by adding dynamic, challenging and second-splitting missions on top of the basic need to stay afloat and get from point A to point B in a completely man-made object (“you can’t walk home from here”) and in the unforgiving, changing and corrosive sea environment where equipment malfunctions are a matter of course. Now do all that with seamlessness, military precision, a largely young population (the average age of a crewmember on a U.S. warship is roughly 19) of mixed race, gender and place of geographic origin and do it in clean - pressed uniforms. A Captain must know and nurture his stakeholders.
So, who are the stakeholders? The Wikipedia definition of Stakeholder in the corporate sense is; a person, group, organization, or system who affects or can be affected by an organization's actions.
Investors, customers, employees, suppliers, lenders, the local community and market are the stakeholders. What “affects” flow between your operation and them. This is the key responsibility of business leadership – stakeholder stewardship. As the business leader – here’s the challenge; to what extent are YOU willing to establish vivid and revealing reporting tools and “transparency mechanisms” that hold you accountable to your stakeholders AND which bring them to a place of knowledge that enjoins them to do their part because they are stakeholders? Doing the right things starts with having the right information upon which to take action. What do lenders and investors say? “No surprises.” Employees, Suppliers and Customers want that too. Can every employee in your enterprise answer the question, “What would the CEO/Owner do in every circumstance? A book that builds on this: The Great Game of Business (by Jack Stack, © 1992 by Doubleday) suggests a way.
“In order to trust, support and anticipate, stakeholders need to know that YOU look at problems and opportunities not in segmented parts, but that you take a watershed view and concern that each stakeholder is thoroughly aware of their role, it’s consequences and the significance of their contribution toward the whole.”
Are you a Scanner or a Diver? We are all created different and companies often make the mistake of driving employees to excel in areas in which they are simply not suited – square pegs jammed into round holes. Robert Lewis, in his program titled “Winning At Home And At Work” points out that individuals who engage in activities for which they are uniquely designed and for which they have certain natural strengths (gifts) are energized by those activites and actually draw energy from exertion in them. Imagine a workforce setup such as that! You don’t have to imagine it – you can have it – even if you don’t have a sophisticated HR department. I can vector you to experts on this!
“A scholar is someone who sticks to something. A poet is someone who uses whatever sticks to him.”- Robert Frost
A network acquaintance recommended a book that provides considerable insight on career focusing and the personalities and “turn-ons” of key employees. The book, I Could do Anything – If I Only Knew What It Was, by Barbara Sher (© 1994 by Dell Publishing) is a journey of personal introspection as well as a platform to understand what makes people tick in their professional capacity. In it you will read about Scanners and Divers. WARNING: This book may hit you right between the eyes. I’m gifting this book to my children.
“We’re drowning in information and starving for knowledge.”Rutherford B. Rogers, Yale University Librarian – 1985 (before the internet explosion …)
At a recent seminar the presenter recalled a professor of one of his business courses who challenged his students to pursue failure early in their careers. Odd advice on the surface. The message – face yours fears head on - take risks. Question: How many people reconfigured their 401(k) portfolios to “max. aggressive” back in March because they believed that a recovery was certain? Crazy? In mid February it would have seemed madness to invest $100,000 in Ford Motor Company stock. Such an investment would have been worth over half a million dollars a few weeks ago. Hindsight you say. I know a man who knows and studies Ford stock, owns Ford cars and knows how that company was and is different than the rest of the automobile companies – he invested when F was $1.50/share - he did “okay”. He invested in what he knew and believed.
Do you run an organization? Are you the expert for running it? Do you have to make judgments about those who do? What do you know and in what do you believe? As we emerge from the recession we are all like fresh graduates – it’s a clear, clean table we have before us - - - the Zamboni has just left the ice! So know what you know, believe in what you believe, act, pursue success and face failure with fearlessness.
Sometimes we forget that the greatest take-away from college was that we learned how to learn. We also learned how to get up after falling down and we learned that we could always change our minds. Now’s the time – it is an uphill pursuit and there are new rules that will require us to do things differently with perseverence, patience and the freshness of youthful fearlessness. That perspective should be exhilharating!
“Love gave me confidence and adversity gave me purpose.”Eunice Kennedy ~ Rest in Peace
The recession has stripped the varnish off and exposed many a management style. Openness, Loyalty, Integrity have all been tested. Nothing has been lost on employees who have been carefully watching - noticing every move made by management in the breech. The present unemployment rate is a dam holding many employees in place – biding their time. When that dam opens some enterprises may suffer an exodus of disgruntled employees (some justified by their action and some not). There is a risk of losing key individuals upon whom were heaped the work of layed-off colleagues for the good of the enterprise. Managers may think – “fine, from the frying pan into the fire”. Before the year is out – it’s a good idea to genuinely recognize where recognition is due. Intelligent employees understand the financial contraints of the economy - so money need not be the only currency of gratefullness. When profits allow – have a memory.
“The six most important words: I admit I made a mistake. The five most important words: You did a good job. The four most important words: What is YOUR opinion? The three most important words: If you please. The two most important words: Thank You. The one most important word: We. The least important word: I.” - Author unknown
This calls for a segue to a discussion on stakeholders. Who are the stakeholders? Years ago while instructing young Ensigns headed for the fleet I was often asked for one pearl of wisdom that would guide them as they entered their new world afloat. I found myself repeating this advice, “In everything you do, ask yourself - what would the Captain do?” An easy statement to casually make, but a leadership concept that actually requires great effort on the part of the Captain and organizational culture, through a chain of command, that enables each crewmember to follow and serve with competence and WITHOUT thwarting creativity, ingenuity and pro-activity amidst myriad variables and unplanned circumstances – a mouthful. True competency is manifested in professional agility. I gave that “sage” guidance knowing that the Captains out there and the Navy would do their part.
What would the Captain do? What would the CEO do? In few other places is the concept of total responsibility and accountability so clear than in command of a ship at sea. The Navy compounds the responsibility by adding dynamic, challenging and second-splitting missions on top of the basic need to stay afloat and get from point A to point B in a completely man-made object (“you can’t walk home from here”) and in the unforgiving, changing and corrosive sea environment where equipment malfunctions are a matter of course. Now do all that with seamlessness, military precision, a largely young population (the average age of a crewmember on a U.S. warship is roughly 19) of mixed race, gender and place of geographic origin and do it in clean - pressed uniforms. A Captain must know and nurture his stakeholders.
So, who are the stakeholders? The Wikipedia definition of Stakeholder in the corporate sense is; a person, group, organization, or system who affects or can be affected by an organization's actions.
Investors, customers, employees, suppliers, lenders, the local community and market are the stakeholders. What “affects” flow between your operation and them. This is the key responsibility of business leadership – stakeholder stewardship. As the business leader – here’s the challenge; to what extent are YOU willing to establish vivid and revealing reporting tools and “transparency mechanisms” that hold you accountable to your stakeholders AND which bring them to a place of knowledge that enjoins them to do their part because they are stakeholders? Doing the right things starts with having the right information upon which to take action. What do lenders and investors say? “No surprises.” Employees, Suppliers and Customers want that too. Can every employee in your enterprise answer the question, “What would the CEO/Owner do in every circumstance? A book that builds on this: The Great Game of Business (by Jack Stack, © 1992 by Doubleday) suggests a way.
“In order to trust, support and anticipate, stakeholders need to know that YOU look at problems and opportunities not in segmented parts, but that you take a watershed view and concern that each stakeholder is thoroughly aware of their role, it’s consequences and the significance of their contribution toward the whole.”
Are you a Scanner or a Diver? We are all created different and companies often make the mistake of driving employees to excel in areas in which they are simply not suited – square pegs jammed into round holes. Robert Lewis, in his program titled “Winning At Home And At Work” points out that individuals who engage in activities for which they are uniquely designed and for which they have certain natural strengths (gifts) are energized by those activites and actually draw energy from exertion in them. Imagine a workforce setup such as that! You don’t have to imagine it – you can have it – even if you don’t have a sophisticated HR department. I can vector you to experts on this!
“A scholar is someone who sticks to something. A poet is someone who uses whatever sticks to him.”- Robert Frost
A network acquaintance recommended a book that provides considerable insight on career focusing and the personalities and “turn-ons” of key employees. The book, I Could do Anything – If I Only Knew What It Was, by Barbara Sher (© 1994 by Dell Publishing) is a journey of personal introspection as well as a platform to understand what makes people tick in their professional capacity. In it you will read about Scanners and Divers. WARNING: This book may hit you right between the eyes. I’m gifting this book to my children.
All the Best!
Bill
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