"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
.jpg)
