Nov 2, 2020 | Leadership
The brutal reality of our current situation is that we are in a crisis of many shapes.
Significant parts of our economy have tanked as a partial consequence of the global Corona bug, our biggest trading partner is exercising their power in ways we should have, but did not expect, and the ‘world order’ is as brittle as it has been in my lifetime.
- The US has thrown away its leading economic and moral role, (I give them the benefit of the doubt on the latter)
- The EU has become a toothless bureaucracy unravelling slowly despite the economic power of Germany trying to hold it together as insurance against the loss of the Euros they have pumped into many of the stumbling members, and the clusterf**k that is Brexit continues
- China is actively and aggressively expanding economic and military control around the globe,
- Our readiness to cope with the Corona pandemic on a consistent basis globally has been shown as terrible. This is despite many warning signs that viral pandemics (MARS, SARS, Swine flue, Ebola, Spanish flue, et al) caused by species hopping viruses are becoming a part of our survival challenge,
- and the climate is emerging as the existential crisis that might just finish off our species within a few hundred years.
A dystopian scenario.
Meanwhile, back in the comfort of Canberra, we fiddle at the edges, apportioning blame, while mouthing hopeful jargon and clichés and pissing away resources in a short term race for the next shot at the largess delivered by a parliamentary majority.
We have lost our moral compass, the core values by which we live in communities, the commitment to recognising the reality of the current, and building the foundations that will enable us to survive and prosper in the long term.
To go back to where we started, Admiral James Stockdale, the most senior naval officer held for 8 years as a ‘guest’ of the Hanoi Hilton expressing why he survived when many others did not: ‘You must never confuse faith that you will prevail in the end, which you can never afford to lose, with the discipline to confront the most brutal facts of your current reality, whatever that might be’
We should be listening to people like Stockdale, and acting on their hard won wisdom. Instead, we listen to idiotic social media ‘influencers’, industry czars with a position to protect, and sadly, politicians with an agenda that has little to do with the long term best interests of those that are supposed to be serving.
Header cartoon courtesy Tom Gauld at www.tomgauld.com
Oct 30, 2020 | Leadership, Management
Focus across the activities of a business is essential.
It means everyone is on the same page, and there are only the key performance drivers that are there, all else has been, or is being eliminated until the value is greater than the cost. This sense of purpose delivered by consistent and clear focus ensures that everything fits together.
It also means that the leader has as their primary task, communication. That communication is cascaded through the organisation, enabling the focus on what is important, today, tomorrow and into the future, with a singular focus.
Every person running an SME I have ever seen struggles with focus. They are pulled in multiple directions, simply because as an SME, there is no-one else to get stuff done, and in addition, many running SME’s are doing so because the sense of ‘ownership’ is strong, and they do not want to let it go.
To change this instinctive behaviour is not easy, requiring 3 simple to say steps, which are always very hard to implement.
- Precise definition of the goals. The temptation is to be general, make nice sounding goals that generate a nice warm feeling, without being specific. They are comfortable. Goals to be compelling drivers of behaviour and activity must be specific. The original and still the best framework is: ‘SMART’ goals. Specific, Measurable, Accountable, Reasonable, and Time-bound. When you get that right, the rest can follow, as it is clear if an activity is of value by asking the simple question: ‘Does this add to the progress of X?
- Disallow Procrastination. It is easy to put off a decision, allocation of resource, choice between options, by the very reasonable tactic of wanting more precise information with which to make the best possible decision. Given decisions about resource allocations are always made in the absence of complete information, this hesitation often seems reasonable. However, it inhibits the speed with which decisions are made, implemented, and either reversed, when they prove to be sub optimal, or double downed on when they prove to be good. Speed is increasingly the measure by which successful enterprises measure themselves. Elsewhere I have discussed the OODA loop as a tool to encourage speed and the attendant agility that are so essential to success. Do not allow yourself to procrastinate. As George Patton is reported to have said: ‘A good plan, violently executed now, is better than a perfect plan next week’
- Do the hard work. There is always easy work to be done, that takes the place of the hard work necessary to achieve the goals. Leaving the easy work and attacking the hard stuff is like contemplating the choices for a lovely spring afternoon. Going for lunch at the local pub overlooking the harbour or getting down and dirty in the factory to address something that may emerge as a problem next week. Do the hard work first, and then go to lunch if there is time left in the day.
An experienced and neutral party offers significant value as a sounding board, idea bank, and advisor. Find someone who has been there before, learned from the experience, that you trust, and reap the rewards.
Oct 28, 2020 | Governance, Leadership
Over 25 years of consulting, the second most common problem I see being faced by SME’s, after managing their cash, is to attract and retain talented people.
Many managers do not put enough time, thought and energy into their personnel roster, as they do not have the time to do so.
So they think.
The hidden costs of just keeping a seat warm by substandard recruiting outcomes are huge. Not only does recruiting consume time and money, you then have to train and manage a series of new employees as the poor decisions come home to roost. As with a customer, spend the effort to ensure they are the one you want, invest in them to ensure they stay with you, and over time the investment will deliver a great return.
Some of the things I have seen work over my 45 years of commercial life are as follows:
Pay over the odds.
This is not to encourage a culture of greed or entitlement, it is simply to make sure that really good people do not have remuneration as a reason to go elsewhere. You will always lose employees from time to time, but ensuring good pay removes one reason for them to leave. It is also a great way to ensure former employees have nothing bad to say about you, which in turn, makes recruiting easier.
Recognition.
People love to be recognised for doing a good job, for delivering over and above. Recognition of a good employee makes them want to come to work. Some just want the one on one recognition, others need the public affirmation of their good job by the boss. Be sensitive to which an individual might prefer, and deliver as appropriate. I have never yet seen a situation where someone was uncomfortable because they were recognised too much!
Have a clear strategic framework.
Employees like to know why they are there, other than to pay the rent and feed the kids, and what roles they play in achieving an outcome for the enterprise. Having in place a robust and transparent strategic framework not only provides the foundation of decision making at all levels, it enables people to articulate the role they play in success.
Do not micro-manage.
Micro-managing someone implies that you do not have the confidence in them to let them do the job they were hired to do. The usual outcome is that they do not do it, and they go elsewhere, or are at best, are disinterested and therefore sub-optimal employees.
Manage good people by the outcomes they achieve, not by the detail of the means by which they are achieved.
Play to the strengths of good people
Nobody is perfect, and no one person is perfect for any specific job. When you have someone good, rather than try and change them to address the gaps they leave, find ways to fill in around them so that their strengths can be developed and leveraged.
Have a significant ‘onboarding’ process
First impressions count, and you can only make them once. Making a new employee feel welcome, valued, important to the whole group is easy if you think about it. Rather than just having them turn up, almost unannounced, to a desk covered with the detritus of the previous incumbent, make a show of welcoming them, ensure they are introduced to everyone, specifically including the big bosses. A drowning person can often drag others under in their efforts to swim. It is no different with a new employee, far better to spend a bit of time and effort teaching them to swim than to deal with the consequences of discovering they cannot, or that they do breaststroke when freestyle is required.
Role clarity
Every person needs to understand their own role, and that of those around them, particularly those that are impacted by their performance.
Treat people as people, not resources.
Total transparency will go a long way towards this outcome. Good people react very positively to honesty, and non-judgmental feedback on their performance.
As a reminder, the biggest problem most businesses have, and particularly SME’s is cash. Generating, collecting and managing it.
When you need an old experienced hand, give me a call.
Oct 14, 2020 | Governance, Leadership, Management
A key part of managing activity is to record it as necessary to be done, check it off when done, and make any observation necessary for next time.
This holds true from the development of a strategy down to the daily activities on the shop floor, and everything in between. The only difference is the scale of the things that are being recorded, discussed, and allocated to a responsible person, and perhaps the time between reconciliations.
Years ago I obtained a private pilots licence. An essential part of the training was to have a list of items to be checked off prior to take-off. In that case, it was not a written checklist, as when you are filling in a written checklist yourself, it is too easy to just run down the list and tick all the items as done. In that case the list was physical: my hand went to the item being checked off in the plane ‘walk-around’, and then in the cockpit, touching the item concerned. This addition of the physical to the memorised and written list ensured it was done. In the cockpit of a commercial airliner, where there is a co-pilot, the co-pilot has the written checklist, which he reads out to the captain, who checks the status and reports back for recording by the co-pilot.
Checklists serve a number of purposes:
- They serve as a specific reminder, as our memories are faulty, and prone to taking the easy way out.
- Repeating a list builds memory and habit, and when a habit is broken, we become uncomfortable, our ‘survival’ 6th sense kicks in.
- It provides assurance that the item has been done in an accountable manner.
- It provides the opportunity for specific feedback and immediate remedial action. In a factory this may be to complete an unfinished run from the previous shift, deliver preventative maintenance to a piece of machinery, and a thousand other things.
- It acts as a training profile to be followed by newcomers. Theoretically this should enable someone with no knowledge of the specific process to be able to complete it, simply by following the checklist.
- It allocates responsibility for actions to be done. During the resurrection of Ford by Alan Mulally, he had a daily meeting with his direct reports, in which they reported on the activities they had been allocated from the previous day. Clearly this process is not just for the factory floor.
- During those meetings Mulally also had the daily Ford cash balance calculated and shown, which underlined the importance of cash to the business during a time when they were losing money at a huge rate.
- Lists enable the allocation of priorities, so that resources can be allocated in the most impactful manner.
- Lists act as ‘grease’ for collaboration
Have you ever noticed that those who have the discipline to do daily and weekly checklists for themselves, and stick to them, appear more productive than their peers?
That is generally because they are.
Header photo credit: NASA
Oct 5, 2020 | Leadership, Strategy
Over 45 years I have seen all sorts of strategies. Some work, some fail, some are elegant articulations of a vision and mission, some are a few words on a sheet of paper. Some are data driven, some full of a breathless accounting of what they will make the world look like, and everything in between.
They come in all shapes and sizes.
The common denominator of those that are successful is none of these.
That common success element is that they have been driven by someone who has a bias to action.
They implement.
While others look for more information, watch what their competitors are doing, lobby the government, spend more on developing the next iteration of that great product, the action oriented leader implements.
It will never go completely to plan, there will be mistakes, uncertainty and anxious regret that more care was not taken, and sometimes hordes of naysayers. Nevertheless, the only strategy that has a chance of delivering is the one that gets implemented.
A strategy document that sits on the shelf, gathering dust as information and consensus is accumulated, is the one that never works, because it is not a strategy. It is an excuse for surrendering to the status quo, to the concern about being seen as being wrong, and therefore excluded from the herd.
Oh, by the way, this works not only for a strategy, but in microcosm, at the smallest detail level.
When someone on a production line sees something that could be made to work better that is within their scope of power to change, they take action and change it, observe the results and adjust when necessary. For the leading hands on a line responsible for the running of the line, having a culture in place that encourages and rewards this bias to action, is like having manna from heaven.
Stop talking and start doing!
Header cartoon courtesy of Scott Adams, and the wisdom of Dilbert
Sep 28, 2020 | Leadership, Management, Small business
Every business starts small. The biggest on the planet all started somewhere, in a garage, dorm room, lab, somewhere between the ears of the entrepreneur.
Most fail, or at best deliver a return that would have been dwarfed by the interest on the same investment in a bank account.
Some however, do succeed.
We all see the ones that do, they are shoved down our throats all the time as the heroes, the ones who made it, and we are asked the question, if they can, why can’t you?
There seems to me to be a pretty consistent sequence of growth, a sequence that holds true across all sorts of products and services, geographies, technologies, and circumstances.
Cheering.
This is the first stage, it seems to be all enthusiasm, cheering from the sidelines, jumping up and down, wishing for stuff to happen. What it is really about when you are in the midst of it all is hard grind, chaos, and cash.
At the beginning, you work your arse off, seemingly 24/7, with no letup. Everything that gets done depends on you doing it, you don’t do it, it does not get done. Simple. It is messy, usually chaotic, as pressures come from every direction, your attention is demanded by each, which is why the 24/7, and still there is little forward progress. Then there is cash. As you start, nothing is more important than cash. More start-ups go broke for lack of cash than every other reason combined. Managing your cash is simply the most important thing you must do.
Planning & doing.
Assuming you survive the cheering stage, you will have come to the point where you have a little more head time to be used considering: ‘what next’. You probably have a very small number of employees, and perhaps some outsourced services, like accounting and IT.
Answering the ‘what next’ question will be eating at your guts, as for sure, you do not want to continue as you have been. Your kids are growing up without you, your partner becoming a stranger, you have not had a weekend with your mates for ages, so you look forward to a different future. So, you stumble into some planning. It is never as easy as filling in some generic template, of which there are plenty making alluring promises, it is more about the graft of figuring out how to accumulate and allocate the resources necessary to grow. While the game is still about cash, it has also become about profit, what is left for reinvestment at the end of the month, quarter, and year.
You plan your products and services, the foundation stuff you need to get right, like the legal and regulatory things that must be done, understand the financial and strategic pressures that are present, and settle for the moment on a business model: the means by which you will turn your chaos into sustainable profitability.
However, a plan, no matter how good it may be at telling the future, envisioning new products, markets and customers, needs one further ingredient.
It needs to be implemented.
Plans that do not get implemented are usually called dreams. You will also recognise the reality of the muttering of generals throughout the ages that while planning is essential, nothing ever goes exactly to plan, so you must be ready to be agile tactically, while consistent strategically.
Building & growing.
The essential ingredients to building and growing an enterprise, on top of the financial resources that enable that growth are twofold.
You need people to do the work, and you need processes for them to follow, and over time, optimise.
The task of being the entrepreneur has changed from one of management, to one of leadership. You are no longer as engaged in tactical activity. Tactical implementation is being done by others in a manner that is transparent to overview, and with KPI’s based on outcomes. The task now is about the people doing the work, from the daily tactical stuff to the functional management. Your role is to lead all these people, and ensure that the processes being deployed deliver on the plan. It is all about the productivity of resources deployed, people and financial, delivered via the processes that evolve.
Anyone who thinks this is easy has never done it.
Anyone who stands on the sidelines and cheers for you might be a cheerleader, supporter, and beneficiary, but they are not a coach. A coach delivers the models and means by which the success is generated, which is much more than cheering, as it involves getting dirty from time to time, being challenging at all times, and ensuring you are looking beyond the tactical that threatens to consume you at all times.
At each point in this growth pattern, there is a single question that you can ask that will give you an answer to the question of growth potential contained in any tactical decision:
‘Does this scale?’
Many small business owners do not ask this question, so end up selling their time for money: and there is only a limited time in any day. Therefore, if you are about to invest in tactical activity of any type, ask that simple question: Does this scale?
If the answer is yes, fine. If it is no, think again.
When you are looking for a coach with the scars to prove experience, browse through the posts on the StrategyAudit site, and then you might want to give me a call.
