All posts by Steve

Alternatives, Analysis, Decision Making, Self Analysis

Instinct

It has been a somewhat interesting week. Many items have caught my attention and seemed as though they would be good topics to write about. I may save a few of these ideas for later articles. Some of them are probably better left out or forgotten. I don’t mind wandering off into some potentially arcane or hard to relate to business topics occasionally, but I don’t want to generate just another rant about this topic or that one and then try to relate it to business.

What I thought that was interesting today was the idea of instinct. I think we all have a basic idea of what instinct is, but since I am eventually going to relate it to business I think I may want to start out at a reasonable baseline. May favorite way of doing that is to go out to Merriam-Webster and retrieve the following “simple” definition of instinct:

“Something you know without learning it or thinking about it”.

Okay, a couple things here. First, when did Merriam-Webster start providing a “simple definition”? Really? Have we actually come to the point where we are abridging our definitions into the simplest of vernacular? I couldn’t make this up. There is now a “simple” and a “full” definition. I fear for where our society is going at this point, but I promised not to propeller off into some sort of a rant.

Second, I think I’ll go with the “full” definition, because I guess I am just that kind of person:

“A natural or inherent aptitude, impulse, or capacity”

Either way, I think you get my point. We have all met people in business that just seem to know what to do and when to do it. They make good business decisions. They can extrapolate limited data and input it into very good solutions. They make smart choices. They are said to have good instincts. But do they really?

We usually hear of “good instincts” as it applies to athletes. It seems to be some sort of method for describing why an athlete who is not biggest, fastest or most imposing physical specimen is so good at what they do.

I have mentioned in the past that I have become something of a hockey fan. Even I find this rather interesting since I grew up in the desert southwest and currently live in Texas, which as we all know is not considered a hotbed of hockey fandom. Go figure.

With that in mind, the best example of this good instincts phenomenon that I can think of is the hockey player Wayne Gretzky. The leading scorer in the history of the National Hockey League. The man who’s nick-named “The Great One”. The measuring stick for all other great hockey players.

He was not particularly big as hockey players go. He was not the fastest skater, nor did he have the hardest shot. He just scored, a lot. When he was asked how he did it, he said he didn’t go to where the puck was, but where he thought the puck would be. Based on his success it looks like he had great instincts.

Or did he? I’ll get back to this a little later as well.

Let’s fast forward to the opening day of the National Football league and the first game of the season for the Dallas Cowboys. I am not a particular Dallas Cowboys fan. That person in our house would be my wife. I am however wise enough to sit on the couch quietly while she cheers her team on. I guess it is our version of “together” time.

The game in question was a see-saw affair and was reasonably exciting. It was coming down to the last few seconds when a field goal could steal a victory for Dallas. With no time outs and just a handful of seconds left on the clock a pass was thrown to the Dallas receiver on the sidelines. All he needed to do was step out of bounds and stop the clock.

But this is where his instincts kicked in.

Instead of stepping out of bounds and stopping the clock, which in this instance was the most limited resource in the situation, the receiver turned and tried to run up field and gain a few more yards. I don’t blame him (my wife does however) because every receiver’s instinct is to maximize the gain on each individual play. Needless to say he was tackled in bounds, time ran out and Dallas lost.

It is apparent that in this instance his instincts were wrong.

Time was in fact the most importance aspect of the situation. He needed to understand that and adjust his behavior appropriately. He needed to think about where he was and the situation he, and the team were in and act accordingly.

This is easy enough to say when you are sitting on a couch next to someone who is cheering wildly, and not down on the field actually competing.

Now let’s go back to Wayne Gretzky. He gave us the definition of his “instinct”. He thought about where the puck was going to be and went there to meet it. Was the puck there every time he went to where he thought it would be? No. But he was right enough to become the leading scorer in the history of professional hockey.

The point here is that as he said, he “thought” about it. It was not instinct as we currently like and want to define it. He was able to process the game situation, formulate a plan and implement it in such a way as to be in the right place at the right time in order to score. He did not just skate around waiting for people to pass him the puck. He was always aware of the situation and adjusted accordingly.

It seems to me that Gretzky’s “instinct” was more related to the way he saw and thought about the game as he played it. He was able to process the various locations and movements on the ice and anticipate where he thought the puck would be. Then he would go there. Since hockey is a game of split second decisions as I said he wasn’t right all the time, but he was right more often than anyone else.

Now let’s talk about business. Businesses love predictability. When things are predictable, just about anyone can anticipate what is going to happen.

In hockey this would be the equivalent of everyone knowing where the puck was going with the result that all of the players would be clustered around Gretzky waiting for the puck.

But in business, like hockey, not everything is predictable. Most everyone thinks in different ways and reacts differently to different inputs. For every Wayne Gretzky or Steve Jobs, there are a number of different elite players or leaders in the game. After all, someone else had to pass Gretzky the puck in order for him to score.

I think “instinct” whether in sports or in business is not some unseen or unconscious force associated with performance, but rather the ability to process and make connections between multiple inputs and variables that result in good decisions. It is the ability to think, sometimes faster than your competition, and most times more accurately than your competition.

Knowing where to go to meet the puck, or when to get out of bounds instead of turning and running up field, or when to invest in a new product or technology comes from understanding the multiple inputs associated with each situation, thinking through the alternatives, selecting and acting upon the best one.

As I said, Gretzky did it a lot. Jobs seemed to do it more often than not. We all remember the iPod, Mac and iPad. Does anyone remember NeXT computer or the Apple Lisa? Just asking. I am sure the Dallas receiver has made many more good game play decisions than bad ones. It’s just that his last bad one had such an immediate and visible result.

Not everyone makes the right decision every time. Instincts or not, business is very much like every other game out there: How quickly can you get to the right decision. How people think and process information obviously has a great deal to do with the decisions that they make. Different situations call for different types of thinking and decisions.

I think it is our natural instinct to migrate towards people who think and act like we do. This is a normal sort of reinforcement behavior. We tend to like people who agree with us as it reinforces the decisions we make. We need to think a little more about that. I think we need to actively encourage contrary behavior and thought processes. I don’t think we should view this behavior as open defiance or insubordination, but more as a check sum verification.

In looking at a replay of the Dallas receiver’s last play of the game, one of his team mates can be clearly seen trying to get him to run out of bounds instead of up field. It seems he didn’t see him or if he did, he didn’t pay attention to him. Either way it was obvious someone else had thought about the game situation and come up with a different decision for that situation.

As I have said, not everyone makes the right decision every time. And sometimes our instincts are wrong. It’s always good to listen to and think about other possible solutions before relying on instinct and turning and running up field.

Accountability, Activities, Communication, Self Analysis

It All Counts

After over seven years and more than three hundred articles, I took a little time off from blogging. I needed a break. It wasn’t much of a break. I think it was on the order of a few weeks. It was interesting in that the longer the break went the more I felt the need to get back to writing. I guess that wouldn’t be so bad if I felt I was a better writer.

Be that as it may, I will not allow my lack of talent to stop me from enjoying something. I prove this fact every time I try to play music. So I am back. I have a few new topics already in mind, but I think I will take my time in getting to them. What I will delve into today is going to be the new age joy and scourge of so many of us: Social Media.

My son is a senior in high school, and I believe him to be one of a vanishingly few individuals in North America (if not the civilized world) who does not participate in any social media. He has grown up during the age of social media. Still, he doesn’t have a Facebook account, or a Twitter feed, or any other of a number of social media sources. This pleases my wife since he is blissfully unaware of all the pictures, comments and proclamations she posts about him as he matriculates through life. He doesn’t tweet, friend, post, snap or chat with anyone. What is most surprising to me is that he seems genuinely happy about it too. Go figure.

When I have asked him about it he has blithely responded that he doesn’t see any benefit in participating in social media and if the truth be told he views it as a more of a problem then a benefit when it comes to communicating.

A long, long time ago in a black and white (television) galaxy far, far away, a guy named Art Linkletter had a television show named “Kids Say the Darndest Things”. My son just proved him right.

In this day and age of ubiquitous social media and the ability for anyone to access, generate and present any comment, image, content or position into cyberspace at any time, people seem to have forgotten a very important principle: Other people (not just the ones the content is intended for) can see and read these things. We would like to think that as we are well into the twenty first century that we all enjoy the benefits of freedom of speech and expression. To a large part we do. Except for when we don’t.

Abraham Lincoln said “With great freedom comes great responsibility.” He was as right then as he is now (except if he said it now he would have probably posted it on Facebook and LinkedIn and gotten a ton of “Likes” and “Shares”). What this means today is that just because we have the ability and even the forum to post or say anything we like, it doesn’t mean we should post or say anything we like.

I like picking on meteorologists because to me there are so few occupations where you can be wrong so often and still be regarded as a good meteorologist. I would have said great meteorologist, but that sounded too much like an oxymoron to me. Could there really be something called a great meteorologist?

A great baseball player actually hits the ball and gets on base about thirty percent of the time. This is called a three hundred batting average. Baseball players are praised for succeeding thirty percent of the time, while failing seventy percent of the time. I don’t know what the equivalent batting average is for a good meteorologist is, but I don’t think it is quite as high as a good baseball batting average.

In any event, the topic I am using as an example involves the dismissal of a meteorologist some time ago. This meteorologist wasn’t fired for their inaccurate predictions of the weather. I actually think most people rather expect meteorologists to get the weather prediction wrong. This meteorologist was fired for expressing their own personal opinion on the public forum called the internet.

It seems a group of people took issue with what the meteorologist posted and started to use their own internet based forums to complain. As the groundswell grew, this person’s professional fate was sealed. Job performance had nothing to do with it.

Please notice that I have not said anything about the content or the context of the purported comments. They were not illegal or threatening in any way. I am definitely not saying I agree with them in any way, shape or form. What I am saying is that they were perceived by various groups as being contrary to what those groups viewed as an acceptable position or comment. They took issue with them and as an ever widening group began to complain to the television station about what this meteorologist had posted.

A point I am making here is that it is now a very real and proven possibility that you can in fact lose your job based on what you post in social media or on the internet. The meteorologist in question is not an isolated instance of this type of professional reaction to personal comments. What might be possibly acceptable in the context of a private conversation may not be acceptable in the public realm of social media. What may be heard on the radio may not be acceptable for an individual on the internet.

Think about that for a minute. Some people can be paid for saying shocking things in public and others can be fired for doing the same thing.

Another point to be aware of is that with the quality of today’s search engines, the internet never forgets. Once a comment or post is released into cyberspace, it more than likely remains there forever. It doesn’t matter if it is deleted or erased. It can be exhumed over and over again. Where do you think I get most of my quotes and attributions?

What do you want to be remembered for?

Those embarrassing pictures taken at some party? Yup, they’re out there. That off the cuff, off color comment that you just had to post? It’s there too. That snarky response to someone else’s post? Who could forget that? I think you get the point.

I think those of us in business organizations, as well as just about everyone else I guess, need to remember that once we put something out there, that anyone including our associates, employers and customers have the ability to see it. And just as we are becoming more social media and internet savvy, so are they.

It is not uncommon for would be employers to research candidates via the web for their social media “fingerprints”. What better way to learn about people than to read what they have to say and do in these unrestricted very public forums? I would suspect that every company’s customers are probably doing the same searches as well.

I enjoy social media, and blogging. I actually try to use it as a constructive capability, if you can call this blog a constructive outlet. I’ll leave that to you to decide. I have tried to not lose sight of the fact that not everyone will agree with the positions that I may take. That is a more than acceptable condition as it is the discourse that results from these differences of views and opinions that keeps my interest in the forum. But I always try to understand others points of view before reacting with a potential off the cuff or inflammatory remark.

I think that it has yet to be decided what the outcome of my son’s lack of social media involvement will bring. Will his friends accept that he is “different” in that he doesn’t care to be on social media? Will he have to bow to peer pressure and get on social media if he wants to be able to communicate with his peer group? Will potential future employers be concerned when they do an internet search on him as a potential employment candidate and don’t find years worth of comments and posts?

Or is he possibly just ahead of the curve in recognizing that at least for him, he chooses to define the way he uses the internet as it relates to him?

I’ll have to think about that for a while. In the mean time, I think that as social media continues to garner more and more attention both within the real world and cyberspace, we need to be cognizant of the fact that regardless of what we put out there, it stays there for all to see, and it all counts.

Accountability, Alternatives, Business, Decision Making, Risk and Return

Business Cases

“My mind is aglow with whirling, transient nodes of thought careening through a cosmic vapor of invention. My mind is a raging torrent, flooded with rivulets of thought, cascading into a waterfall of creative alternatives…”

(Hedley (not Hedy) Lamarr in Mel Brooks’ “Blazing Saddles”.)

Ditto.
Extra points if you knew who said that as well as who uttered the response.

I seem to have costs on my mind (as well as a lot of other things, apparently) these days. I didn’t know what I wanted to address in this posting: Cost Reduction, Business Cases, Business Predictability all seemed to have been foremost in my mind among the possible group of posting topics. It seemed like the best thing to do was get started and see where it went. It went to “Blazing Saddles”. I don’t know if it is recoverable from there, but I will try.

Since this is nominally a Business Blog, and I did at least tangentially address cost reduction as one of the primary growth industries in business in my last posting, I think that I will head over into business cases. However, do not lament the transition away from cost reduction entirely, as costs do play an important role in the creation of any good business case.

It appears that creating or generating a really good business case is becoming a lost art. Coming up with an idea, specifying the investment parameters, analyzing the markets and demands, and ultimately defining the returns and value to the company are some of the building blocks of a successful business. It is a rigorous process (and it should be) because it deals with the lifeblood of the business – money.

This is not going to be some sort of a “how to” do a business case primer. It’s more about what they are and why they’re needed. Simply put, a business case is the justification package that you put together when you want the company or organization to invest in something. This is a very high level definition. The “something” to be invested in can be almost anything: research and development for new products, production automation equipment to reduce the labor component associated with manufacturing, additional sales people in an effort to expand the addressable market and grow sales, are just a few of the fun ones that come to mind.

Business cases are all about what the company should invest in. Investing is all about money, specifically when you spend it, how much of it you spend, when you get it back and how much more of it you get back. Businesses are in business to make money. Like every good investor, when money is spent or invested, a return is expected on that money or investment. If that does not seem to be the case, then the business case process has probably broken down.

I do not claim to be a business case guru. I have put several of them together and have found a few topics that I look for in every good business case. If you want to find out all that should be included in a business case, just Google “Business Case Template”. I think you will get a little more than eight million results.

In my experience, every good business case should have the following three major components:

What is it that is wanted?
What are you asking for and how much is it going to cost? Every business case is about asking for money. In the examples I cited above you would be asking for a specific amount of money for either research and development (people, lab space, lab equipment, etc.), money for manufacturing equipment for automated production, or money for salaries for incremental sales people. This amount is known as the investment.

What is it that you get for the money?
Why would the organization or business want to give you this money? What are they going to get in return? If it is for research and development, what products are they going to get and how will they positively affect the growth of the company. If it is for an automated production line, how much are production costs going to be decreased. If it is for additional sales people, how much are sales going to increase.

When do they get their money back?
No, the organization is not “giving” you money. Think of it as a loan. Every loan needs to be paid back, with interest. This interest is usually in the form of increased profits for the company, either in the form of margins from increased sales or reduced costs. If you don’t believe me on this repayment with interest thing, just ask the bank or financing company the next time you want to invest in a car or house. I think they will be quite specific regarding the interest you will be paying on the loan and the expected repayment schedule that they will require you to comply with. This money that is given back to the company is known as the return on investment.

Business Case Tip #1.
One of the guiding principles of a good business case is that the return on investment should be greater than the investment itself was.

I don’t think there are many (any?) other business case tips that can be given that have the same importance as this one. A proper business case requests a specific amount of money. It defines what the money will be used for (spent on). It specifies what will be produced (new products, cost reductions, increased sales, etc.). It also forecasts when and how much the returns will be. It is all about the numbers.

It is this last part which is especially important. When are they going to get their money back. It is during this discussion when you may hear a term such as “pay-back”. Pay-back is when they get all of their original investment back. This is the break-even point. After this, everything that is returned to the company is a benefit or profit.

Business Case Tip #2
No matter how soon or how quickly the business case hits the “pay-back” point, it will not be soon enough.

Contrary to what some may believe, money in a company is not free. A company must pay for its money, one way or the other. A company can fund a business case investment via either debt or equity financing. In debt financing it is the interest and overheads that it must pay on the loan (debt) it takes out to get the money. In equity financing it is the relative risk and return it must pay in the form of stock appreciation or dividends to the equity investor in order to attract them. This is called “the cost of capital”. It is in effect the interest or discount rate that the company must use in the business case when it looks at the future returns on its investment.

The longer it takes to reach pay back to the company, the more the amount of discount that is applied to the return. The greater the discount, the more difficult it should be to make the business case work.

Remember that there is a limited amount of investment money that is available to any company. There is only so much that the company can borrow before the financial position of the company is adversely affected by its debt position and only so much stock that can be issued before the market adversely affects the equity price and expectation for the stock.

There are also other businesses and organizations within the company that would like to invest in their opportunities as well. That will create a competition for those investment funds. So how should the company decide where to invest?

There are usually two instances where a company will invest. One of the easiest is to invest only in those business cases that provide the greatest return on the investment. That would be those opportunities that have the best business cases. You have just seen above what should be expected at a high level for a good business case.

The second place that a company usually invests is in those strategic initiatives that may not provide the best return but are required for the long term health of the company. What are these strategic initiatives you may ask? That’s a good question. I have found business cases to try to define themselves as a strategic initiative when they contain a request for funding that does not show a reasonable return on the requested investment.

That’s probably not entirely true. There are investments for things such as core technologies that other products are built from that could be defined as strategic (among the many others of this type) as well as initiatives outside of the financially definable realm such as the reduction of carbon footprints or diversity that may not contribute directly to the financial well being of the company, but should be done none the less for the greater good of the company.

Companies expect and need to make money. Otherwise they normally do not get to remain companies for very long. I think a great deal of any company’s success can probably be attributed to how strong their business case process is, and how well they adhere to it. Having people who understand what a good business case is can go a long way to attaining that success.

Accountability, Alternatives, Budgets, Decisions, Finances, Leadership

Growth Industry

I think it is safe to say that most everyone is looking for their next career opportunity. What do they do next? Where do they go next? What is the next step in their career progression? When I have been asked in the past what someone’s next career step might ought to be I have invariably said that everyone should spend some time in sales, and that everyone should do whatever they can to be able to understand the business numbers.

I am not going to back away from that comment. Good leadership needs to understand what it takes (and just how difficult it is) to generate a top line. No matter what everyone who has not been in sales may think, I have found that it is just not that easy to get someone to give you their money, regardless of how good the product or service is that you are selling. (Apple products don’t count here. I truly believe that customer set has been brain washed.) Even so, I think we have all been in situations where management has predicated all of their well scripted strategies for sales growth, regardless of product, business or market conditions, only to miss those growth targets and then try to deal with the business consequences.

I also stand by the assertion that numbers, and derivation of such numbers (or in some cases the divination of said numbers) is required for business and organizational operation. I have cited several quotes on numbers in the past. Robert Heinlein said “If it can’t be expressed in numbers it is opinion not science.” Mark Twain said “There are lies, damn lies, and then there are statistics.” A leader’s long term (and short term) success will be based on their ability to understand and communicate what the business’ numbers are, and why they are what they are.

What I think I am now going to add to these two suggested experiential requirement sets is that leadership needs to spend some time in what my experience has proven to be the only consistent growth industry that I have seen across all industries, markets and businesses: Cost Reduction.

In business there are many things that can (hopefully) be influenced in business performance, but very few things that can truly be controlled. Businesses can try and influence the market to perceive them differently. They can employ various media and advertizing to try and create a progressive image in the market for their goods and services. They are in essence trying to convince the market of their particular product or service advantages and benefits.

Whether or not the market accepts, agrees or is influenced by this positioning is outside the direct control of the business. The business will always try and craft its market message in the most beneficial light possible, but it is the market which gets to decide which parts if any in the message and value proposition are accepted. Entire industries of analysts and consultants have grown up around this market value proposition analysis in efforts to try and actually decipher the facts associated with these messages.

Whether individual customers accept or agree with the proposed business value proposition is also somewhat outside the control of the business. The business can employ dedicated sales staffs and teams to tailor the message specifically to each customer as well as work to identify the value of the solution to that customer. This provides greater input and positioning for the business, but yet again it is the customer that ultimately controls the relative success of the business proposition. They get to say “yes” or “no” to the proposition.

The point here is that a business can do absolutely everything right in the dissemination of its message to the market and its pursuit of the ever elusive customer order, and still fail, sometimes for reasons that are entirely outside the control of the business. They can work and influence and sell in every way imaginable and still not get the order, or enjoy the top line growth they have planned for and need.

Herein lays the rub.

Senior management doesn’t really care about that. A plan has been made and the numbers have been committed. Those numbers have been combined with the overall organization’s other business’s numbers and an total organizational plan has been committed to the corporate leadership. You don’t get to easily miss your financial commitments to the organization.

Where do you think all those ideas for those colorful punishments on your favorite Game of Thrones or Walking Dead television shows came from? Exactly, people who missed their planned or forecasted targets.

While it may be generally frowned upon by senior management to miss the top line plans and forecasts for growth, it is wholly unacceptable and more than likely to be a punishable offense to miss the business profitability and earnings commitments. Herein lies the squeeze: While the top line may not be achieving the required heights, the profitability and earnings commitments to the organization cannot be reduced proportionately, if at all.

The only solution is to cost reduce.

I don’t want to make it sound as if cost reduction is only something to be taken on in times of business stress or top line under performance. It may have once been that way, although I cannot remember it. Suffice it to say in today’s day and age that for a healthy business cost reduction is both a growth business and a never ending process. If you are not doing it now, you had better get started because it will probably be necessary sooner rather than later.

It is well known that the sooner you can make adjustments of any kind in a business year, the less drastic the adjustments need to be. If you can recognize in month two that there is an issue, you have ten months to correct. If the issue is not recognized until month seven, you only have five months to correct, and now the correction must be twice as large.

What I mean here is that if there is a one million dollar short fall in the earnings commitment / forecast and it is recognized in February, you can correct spending (costs) to the tune of one hundred thousand dollars a month. If the same one million dollar issue is recognized in July, you will need to reduce costs by two hundred thousand dollars a month to recoup the same million dollar correction.

Remember that. The later you wait, the more drastic the cost reduction action will have to be. Plan early, act early. Hoping things that are not fully within your control (sales) will improve usually results in much more painful activities associated with those things that you can in fact control – costs.

There are all kinds of costs associated with a business, not just people costs. Here is where knowing the numbers thing comes into play. What are these costs? How do you control or reduce them? And, almost more importantly, how long will it take to implement the changes associated with reducing them?

We have probably all seen these knee-jerk cost reduction actions:

Travel bans – which basically just limited the people who should be traveling and not so much reducing the number of people who shouldn’t have been traveling in the first place. Travel is not a light switch with only the “On” and “Off” positions.

Hiring Freezes – that really aren’t freezes because there will always be the need for the flow of the life blood of new talent that every organization requires.

I have even seen the removal of coffee and other amenities from the corporate break rooms. I don’t know how much was saved, but it did succeed in generating a significant number of grumpy people.

There are any number of other “cost reductions” of these types, but they are for the most part superficial. They do not address the specific issue that the business’s basic cost structure does not match its revenue and hence earnings positions. True cost reduction comes from addressing the long term and fixed costs associated with a business. Can fixed assets be reduced? If so, how and how long till they are affected? Is there outsourcing or off shoring that may be needed? Not everyone can be the best at everything, so looking for external help may be a potential solution. Are there allocations or other programs that need to be reviewed? The list goes on, but the costs must be dug out, isolated and analyzed before action can or should be taken.

This activity will serve to teach the leader, or would be leader what the costs are, in human terms or otherwise, associated with cost reduction. Changing the course or the costs associated with a business is much more fundamental than just freezing travel or hiring. It is also much more invasive. It’s not easy. You have to challenge yourself, your team and your business to change, and that is never easy. No preconceptions regarding business costs should be exempt. All costs should be questioned. When addressing cost reduction, remember what Sun Tzu said about war (as in this case they will be somewhat similar):

“The art of war is of vital importance to the State. It is a matter of life and death, a road either to safety or to ruin. Hence it is a subject of inquiry which can on no account be neglected.”

So is the art of cost reduction.

Accountability, Character, Expectations, Meetings, Responsibilities

Preparation

Okay friends and neighbors. It is time to look up. Cast your eyes skyward for I will be climbing way up on my soap box, my high horse, and anything else that I can orate from. It is time for me to emulate Don Quixote and joust one of my windmill like pet peeves: Preparation.

This is a topic that has been rattling around in my head for a while. I just didn’t quite know how to go about approaching it. I liken it to the general malaise that I feel has been permeating the business environment for several years. It is the feeling that not quite good enough is now good enough.

Let me provide an example.

There once was a time where it was unacceptable to have any issue whatsoever with your phone. This was a time before cellular service and mobile phones. The phone company was held to the absolute highest standards of reliability and quality of service. If you had a dropped call or a quality problem, it was addressed. You were paying for the best network and by golly you were supposed to get the best network.

Fast forward to the current mobile communications networked world. We have all experienced and have even come to expect dropped calls and garbled communications. It comes with the wireless territory. If you wanted the old network desk set reliability you would have called from a desk phone, or your home phone, or a pay phone. (As an aside, when was the last time anyone has seen a pay phone? They are gone.) Now as these wireless type technologies and capabilities are applied to our business and home communications networks in the name of cost reduction, we are now experiencing the same types of dropped calls, garbled communications and generally lower quality of phone service.

Business communications service and performance levels that would have gotten IT executives fired in the past are now the accepted norm. Money has obviously been saved, but not quite good enough is now good enough. In fact it is the norm.

So what has all this rant about networks and such have to do with preparation? Good question.

The idea of preparation was brought home to me the other day. Some of you may know that I am something of a would-be musician. I have told many people that the only thing keeping me from being a good musician is talent, or actually the lack of it.

Ron White, a very funny Texas comedian said “You can’t fix stupid.” I have definitely found this to be the case. Hard workers are great. Smart people are at a premium. The Steve Gobeli corollary to this statement is “You can’t learn talent.” I can learn all sorts of musical theory, styles and songs, but I will not be as good as those that were born with the musical gift.

But here I have truly digressed.

I was called the other day and asked if I would substitute for a regular band member who would be unable to play the gig. I was flattered and of course said yes. This was about six days before the gig.

I then started my preparations.

I got a copy of the set list so I would know what songs to play. I added about twenty minutes to my practice time to better familiarize myself with them. Things were going well.

On the day of the gig I left ninety minutes early because I knew that it would take me at least thirty minutes to get to the venue. I also knew that it would take another thirty to forty five minutes to load my equipment in and get it set up and ready to play. (In my world “roadies” are mythical beings. I have to haul my own amps and instruments.) I could then spend ten to fifteen minutes loosening up, relaxing and getting ready to play. At the appointed time I would be prepared, relaxed and ready to go.

It was interesting that the other guys in the band showed up about the same time I did. They did the same things. When it came time to start they were also ready.

We played for two hours. It was a blast. Even my wife said we sounded good. Strong praise indeed.

In business, for the most part, we know when our meetings are scheduled, what our roles in them will be and what the agenda is. When you think about it, it is a little bit like a musicians gig. The only difference is that in the new world where not quite good enough is now good enough if musicians performed their gigs like many business people are performing in their meetings, they would never be called back to play again.

Since meetings have evolved to where they are no longer really meetings, but more than likely conference calls, I can’t seem to remember when one actually started on time. People are late dialing in, switching phones because the one they are on is not working, hushing barking dogs, quieting crying children amongst other distractions, to the point where just getting the meeting started becomes a significant obstacle to overcome.

I am not saying that everyone needs to “practice” their parts in the meeting. What I am saying is that everyone should know what the meeting is about, have read the agenda and prepared for the role in it. If they are going to present charts, they should have located them on their computer, opened the presentation and been prepared to present them, instead of making everyone else wait while they perform these tasks.

In short, everyone needs to be prepared.

I have talked to other people in the office who have told me of the detailed preparations that they go through when they are getting ready for a game of golf or a ride on their motorcycle, or what they must go through in order to properly clean and wax their black corvette in the Texas heat.

I couldn’t make that last one up. He actually has a black plastic car in a place where the temperature regularly exceeds one hundred degrees Fahrenheit. According to him it requires all sorts of special cleaners and waxes because of the abundant (and hot) Texas sun.

These are just examples of how we prepare for events and activities (my substitute gig included) outside the office that we assign appropriate importance to. We know what it takes to play well in front of an audience, or get the paste wax shine on our car. We also know what it takes to be prepared for, and contribute to a meeting. We know when they start and what we are supposed to do.

Just like the audience lets the band know if they prepared for and performed appropriately, we need to start holding ourselves (and each other for that matter) to the same levels of preparation and performance in business. Not quite good enough in music is definitely not good enough. It sounds terrible.

But we seem to be willing to say that not quite good enough is good enough in business. We let it slide that the meeting started late, or that the slides weren’t ready or the attendees couldn’t respond to or answer the questions.

In most instances it’s not a question of talent. As I said, you can’t teach talent. For the most part I find most people in the professional environment to be very talented. I think it’s more of a question of preparation and the pride of performance in the public realm, or meeting as the case may be. In the new world of not quite good enough being good enough, it seems that it is okay to not be quite prepared enough for a meeting.

I find it to be frustrating, but then I guess I’m the kind of person that goes through the eight hours of preparation to play music and get paid only slightly more than minimum wage per hour for the “two hours of work”. I also invariably show up for meetings on time.

Achievement, Employees, Excellence, Incentives, Recognition

Recognition

I saw an article in a local newspaper today, and as usual it got me to thinking. The article was about a high school that would not allow its National Honor Society members to wear their honor society sashes during their graduation commencement ceremonies. The school district decided that it did not want those graduating students who were not part of the honor society to feel excluded or lessened for not having been an honor society member.

Think about that for a moment.

Kids that excelled were not allowed to be recognized for excelling because of the way it might make those that did not excel feel.

Now I am sure that there are many twists and turns in this story that we have not been a part too. It is my understanding that the National Honor Society is viewed in some schools as more of a “club” due to its non-school requirements and activities. Even so, if only part of this story is true, what would happen in business if business was forced to behave in such a manner with those who excel?

Now before I delve too deeply into this topic from a business point of view, there probably are a few things that we need to remember. I think it is best for us all to remember that each and every business only wants the best, the brightest, the most gifted on their team. They have all implemented interview and selection criteria to make sure that no average person darkens their halls. They spare no expense in their never ending hunt for only the best talent.

Once each business has assembled their own veritable “Avengers” (the first one, where they save the world, not the second one where I’m not sure what they actually did…) slate of employees, they then require that each manager force fit them into a bell shaped distribution curve for their individual performance so that individual ratings and raises can be allocated appropriately.

Wait a minute. In some strange way that actually does sound a little like the high school in question.

Let’s get back to the topic and talk about recognition in business for a little bit. It is, or at least should be an integral part of any employee compensation or retention program. The problem is: How do you recognize those that have excelled without potentially demoralizing or alienating those that may not have done as well. I think that this can be an interesting question on several levels.

The first level is to make sure it is an organizationally acceptable practice to publically recognize individuals. All cultures have a tendency to impose their view of things on the world. I think in the US we are somewhat competitive, understand and accept the concept of individual recognition in a team oriented organization. There are other countries with similar views of things, as well as some that tend to take a little more “team” view of things as opposed to individual performance. Many of us look at it as a reason to work and strive that much harder in order to reap those individual gains.

This is particularly prevalent in many of the sales organizations. Sales incentives, sales rewards, sales trips and recognition are all part of the package. Many sales people, in addition to the compensation, see the opportunity to be recognized for excelling in front of their peers as one of the primary driving incentives for their work.

For the most part, this is how sales recognition works. There is a focus on achievement and those that excelled. There is minimal concern about the feelings of those that did not. All sales people are at the sales meetings. They all know if they achieved or not. If they did not attain the required threshold they had no expectation of being recognized in front of their peers. Their expectations were set long before the recognition was provided.

The advantage of sales in this sort of situation is that it is a very quantitative objective. You get the numbers or you don’t. If you get them, wear a nice suit when you walk on stage in front of your peers. If you don’t, try to sit toward the back in audience and remember it is bad form to make snide comments about those on stage.

However, that may not be the case in other locations or business disciplines. How do you recognize the best accountant? I mean really, how do you recognize them? Do they add their numbers that much better? This is where the recognition ideal starts to run into trouble. Just like the Russian judge in the ice skating competition that seems to have preordained the winners regardless of their performance, when you introduce a human factor or “judgment” into the recognition algorithm you open it up for perceived issues and abuse.

When a recognition program moves away from a quantitative approach to valuation, it begins to move away from rewarding for what is actually getting done and starts to enter the realm of rewarding for how things are getting done. How things are said becomes more important than the content that is contained in the communication.

There is in essence now a question of who gets to go up on stage in front of their peers. Some accountants may feel slighted because they actually added more numbers correctly than the accountant that was selected to be recognized. Others may feel slighted because they were associated with subtraction functions and everybody knows that only the addition guys get all the recognition.

It is in an instance such as this that a recognition program can in fact become a disincentive to those that are not recognized. If there is something other than a pure performance based criteria there will always be the suspicion that the Russian judge had preselected the winner.

Another issue associated with recognition can be culture. In some cultures individuals like to be recognized for the contribution, but they may not want to be recognized publically in front of their peers for their contributions. Some cultures prefer a more individual based one-on-one recognition. A direct word from the leader or a personalized congratulatory note on a job well done can be preferred to taking a bow in front of one’s peers.

This again is a good way to avoid the perceived snub or demoralizing effect associated with those not receiving the recognition. A simple acknowledgement or a small token of appreciation from the business leadership without all the pomp and circumstance (that’s a high school graduation reference in case you missed it) can readily serve as way to recognize those that have excelled.

It’s no secret that recognition is an important aspect of business and team morale and satisfaction. If there are going to be public recognition programs they need to be as quantitative in nature as possible. If all participants are aware of the recognition criteria thresholds, then there usually cannot be any issues generated by those that are not recognized.

Regardless of how unbiased or expert management may feel it is, when any sort of “judgment” is injected into the recognition process there will be a segment of the business or team that will feel someone else may have been unfairly selected. This can result in a set of responses and behaviors that are contrary to the desired culture of inciting achievement.

In looking at recognition based rewards for those disciplines where it is possible to implement quantitative thresholds, a public recognition programs as part of the rewards function could be preferable. Everybody knows how they have done with respect to their objectives and there should be no hard feelings for those that know they did not perform as well as others.

For those disciplines where it may be difficult to solely gage performance quantitatively, it may be preferable to look at more individual based methods of recognition. Those that are selected for recognition can receive it directly and those that are not will not feel excluded or lessened for not receiving similar recognition.

Very much like the high school students at the graduation ceremony who won’t be feeling bad because there will not be the public differentiation between them and the National Honor Society graduates who were not allowed to wear their honor society sashes with their cap and gowns at the graduation ceremony.

Culture, Leadership

Immediate Feedback

I was driving along the other day and recognized that I had changed my behavior. I’m a guy so this is indeed a significant moment of self awareness. I don’t think anyone else noticed this change in my behavior but me, but it was a change none the less. I have one of those cars that have a little indicator on the dashboard that tells me when I am being economical in my driving habits. Some cars have very cool indicators such as leaves. The more leaves that are visible, the more economical you are being. Mine doesn’t do that. It says “ECO” or it doesn’t say anything. On or off. That’s all you get. But it is immediate, and that is what I wanted to talk about.

In the past I never got the sort of immediate feedback from my car that encouraged me to be economical. The only feedback that I got was a delayed, periodical feedback when I needed to refill my car with gas. I would stand there filling up (because full service gas stations like the one I used to work for when I was a kid are things of the past) and watch the price wheels whirl around gyroscopically fast due to the immense centripetal forces acting on them. I would try to think back to how long ago that it was that I previously filled up, and wonder what else I could be doing to lengthen the interval and hence become more economical and save some money.

What my car told me was that most of the time I was being pretty economical. I sort of got in the habit of checking both my speed and my economy rating as I drove. I found that when I became frustrated with slow movers who insisted on remaining in the left lane while traffic whizzed by them on the right, people who were obviously lost and needed to get off the road, find a parking lot and call someone to get directions, or anybody who was ignorant enough to be texting while driving, and did all I could to rapidly get around and away from them, my little “ECO” light went off.

This is not the change in behavior that I was talking about.

I still want to be nowhere near these moving road hazards as they navigate through their commutes, and will expend a little extra gasoline in order to achieve this goal.

What I do want to talk about is all the other less apparent and visible times that the “ECO” light went off and gave me the immediate feedback that I might not be driving as economically as I could be. I have smoothed out my accelerations and anticipated my stops. I have become more aware when my car is being operated in an economical mode. I have changed my behavior.

Now I have been driving for a long time. I started driving when some cars that are now considered “classics” were then considered “junkers”. I have filled the tanks in the various cars that I have owned for years. Thinking back, this was the only time that I got any feedback regarding the relative economy of my driving habits, other than my mother and later in life my wife telling me to slow down. This feedback was delayed. It was feedback that was given well after the behavior had been exhibited. In fact I think most of the time that I actually got this feedback the car was off and I was standing outside of it trying to fill it up.

I can’t really think of a single instance where I would call the feedback associated with the expense of paying for yet another tank of gasoline constructive or supportive. It was usually more of the negative feeling associated with giving away some of your hard earned money for something that you were just going to burn.

Yet for years I had gone on with this post behavior, periodic feedback without really materially changing the behavior that was driving what could at best be described as negative feedback. It took something as simple and small as immediate positive behavioral reinforcement feedback in the form of a little light on my dashboard that came on when I was doing the right thing. It worked.

Now let’s metaphorically switch gears (there have been several of these automotive metaphors sprinkled in so far) and apply what I have learned to business, which is usually the subject for any of these articles.

Most people who work report to someone. If you report to someone, chances are that periodically you are either going to have a review in which you are provided feedback, or have a review in which you will provide feedback. The parallel here is that this review will be the opportunity for someone to refill your tank, or for you to refill someone else’s tank. As I pointed out above, filling the tank is not usually synonymous with having a good time or a positive event.

As trite as it may sound, I think the idea of utilizing an immediate positive behavioral dash light, the first successful driving behavior altering event (for me anyway) may be a new and better way of positively modifying or reinforcing positive employee behavior, which if I am not mistaken is one of the primary goals of employee reviews.

I have tried to maintain a closer view and review with my team since recognizing this behavioral modification key in myself. I have taken to reinforcing the desired behaviors and events with my team on a much more regular basis. Instead of dwelling on or going into greater depth on those issues that are not performing in the desired manner, I ask that they look at the opportunities where we are getting good results and pattern their actions and activities in a similar manner.

One of the keys here is not to confuse immediate feedback with micro-management. Telling people what to do, or providing infinite feedback on everything that they do will probably not assist in achieve either the desired goals or the desired behavior. It will probably just annoy everyone, yourself included.

Pick the specific desired goal. In my car’s case it was fuel economy. It didn’t try to tell me how to steer, drive, maintain or clean my car. It just told me when I was operating it in a relatively economical manner. Each business and probably each group within the business will have a primary goal, to which behaviors should be pointing.

Pick the feedback methodology. My car told me when I was doing the right thing. It rapidly became apparent to me when I was not doing the right thing because my car was no longer telling me I was doing the right thing. That fact alone made me want to change my behavior so that I continued to get the positive feedback and reinforcement. I like positive reinforcement and feedback. I think most people do. Reinforce the positive and ask how they can move that which is not positive now into the positive in the future.

Stick with it. I have had my car for a while. Thinking back I am pretty sure it has had this economy metric since it was manufactured. I am not entirely sure I recognized when I was paying attention to it, but I do know now that looking back my behavior and driving habits have changed for the better (more economical)…
…except when I find myself behind a slow-poke in the left lane, a lost soul in the city, or a texting idiot.

Some behaviors take longer than others to change, but I am still hopeful.

There will continue to be those periodic reviews where there is a prescribed format for the review. They can be annual, semi-annual, or just about as often as you want, or can stand. They will also invariably be of the “you did this right, you need more work here” type of review. The big issue for me will be that they are appreciably separated from the actual behavior that is the subject of the review.

Sort of like the filling up of the gas tank as the metric of how economically you have driven over the last period.

If you really want to make progress with the team regarding goals and behavior, you need a dashboard light that provides immediate feedback.

Employees, Expectations, Humor

Walls

Believe it or not walls can be an interesting topic. I think I have probably written about them before. They are often taken for granted, but where would your roof be without them? On the floor, that’s where. Walls are always being metaphorically built up or broken down. Sometimes it’s not even metaphorical. Mr. Reagan told Mr. Gorbachev to “tear down” his wall. One of our current presidential candidates promises to build a new wall as his solution to illegal immigration. Pink Floyd told us that “all in all you’re just another brick in the wall.” Even this country’s national anthem, The Star Spangled Banner mentions walls.

In case you are wondering, “ramparts” is a fancy word for the walls of a fortress, which in this case was Fort McHenry, the bombardment of which by the British was Francis Scott Key’s inspiration for his poem which eventually became the lyrics for the national anthem.

Needless to say walls are an important aspect of our everyday lives. It is possible that nowhere else are they more important than in the office environment. Many of us have become dependent on the walls in the business world for any number of multiple reasons, some of which many of us are not even consciously aware of. With all of this focus and dependency on walls for the maintenance of the very fabric of the business world, I for one would like to know why it is now all the vogue for businesses to try and do away with them in our office environments.

In the past you could walk into almost any office environment and get an idea of the relative rank and importance of just about anyone in it. You would just look at the height of the walls surrounding each individual’s work area. Low walls meant low status, higher walls meant higher status and walls all the way to the ceiling meant an office instead of a cube. Everybody wanted an office. With a real door.

But not anymore.

In these days of cost cutting and the desire for hyper efficient utilization of every precious corporate resource, some smart guy (or girl) must have stood at the edge of one of the corporate cube farms and had an epiphany:

What do we need all these walls for? They really don’t serve any purpose other than to delineate the supposed working areas for the cube farm denizens. Since they only provide the illusion of privacy due to the fact that they don’t reach all the way to the ceiling and everyone can hear everything each other is saying anyway, why don’t we just remove the illusion of privacy all together and get rid of the walls.

Think about how much additional space will be freed up that was just being taken up by these essentially non-functional walls. Where there were once walls, there will now be more people. And since there will no longer be any walls to delineate a work area, we can give everyone even less space to work in and they probably won’t even notice. Our efficiency and space utilization numbers will go through the roof. We can call it the “open office” concept, and claim that it is the latest and best thing. We will save money by cramming more people into the same space.

Senior management will be pleased.

Gone will be the days of speakerphone utilization as no one will want everyone within a twenty foot radius to be included in on their call.

Gone will be the ability to utilize the computer or surf the web for any purpose other than company business as everyone will be able to see what is on the screen.

Gone will be the messy and expensive to maintain desk phones since no one will be able to guarantee that they will be sitting in the same spot each day that they are in the office so each phone can no longer have a consistent phone number. People will need to become versed in the usage of soft-phones and especially headsets if they want at least half of their phone conversations to remain relatively private.

The incremental indirect benefits just go on and on. The brave new world is here, and it is even more efficient in the utilization of office space.

Wow. Well, maybe not.

While the open office concept will allow companies to pack their employees ever more tightly into a given space (think traveling in economy coach instead of regular coach or coach plus on your favorite airline – except without the complimentary peanuts or soft drinks) at least some of your business communications (especially with customers) will require some privacy. Hence there will be an increased demand and a respondent increased supply of conference rooms.

These new open office conference rooms will now also be new and improved as well as designed for people to take and make private calls in. They will not be designed to meet in for any length of time as they too will be smaller. They will no longer be designated as conference rooms but will now become “huddle rooms” or “call rooms”. They will be great. Just don’t try to have a meeting of more than two people in them as it might be a little close.

Also don’t mind the queue outside of them as people wait for their turn to make a call.

There have been rumors that companies may in fact try to double the number of conference rooms associated with the open environment concept. This means that instead of the obligatory two standard sized conference rooms per floor, capable of allowing as many as ten or twelve people to hold a meeting, there could now be as many as four huddle rooms possibly capable of allowing as many as two people to meet.

This will now create a competition to see who can get into the office the earliest. Those that get there first will obviously claim ownership of a huddle room for that day. It will become their de-facto office for the day. However, those that pursue this course of action would be advised to bring their lunches and not make any trips to the bathroom as any perceived vacancy would probably result in the removal of their belongings from the room and someone else staking a claim to it.

Ownership of a huddle room will be viewed as the proverbial nine tenths of the law, especially when it comes to any amount of privacy in an open office environment.

I’m not really sure what the question is that the open office environment is the answer to. I suspect that it is what I have already postulated, namely if a company can remove all of the office and cube walls that are just taking up space in their expensive office environments, they can get more people in the same space and achieve a higher efficiency, at least on paper. I have not had the opportunity to work in one yet so I couldn’t truly say that it will be better or worse.

I have however had the opportunity to visit other offices and customer environments where it has been implemented. It is definitely different. I can see its allure for business. To be honest I can also see that by putting people in such close proximity to each other that it could almost force people to work together and collaborate.

I have long been a proponent of having people work together in the workplace as opposed to the virtual office idea. I don’t know what the reaction will be when people are pushed so closely together in the coming open office concept environments. I guess that as this change proliferates in business we will probably all eventually get the opportunity to see.

Achievement, Activity Levels, Focus, Self Analysis

Work Not Done

Everybody is talking about efficiency these days. And customer value. But mostly about efficiency. How do we become more efficient? How do we gain efficiency? All that kind of stuff. The drive is to reduce costs.

We have all heard the trite, stale, overused homilies. Do more with less. Work smarter not harder. Yadda yadda yadda. Right. In todays (over) process driven business environment, I am pretty much convinced that none of this is going to work. We have to get our collective heads around the idea that true efficiency is in fact going to come from doing less with less while still delivering the desired performance result. Efficiency is going to come from looking at what gets done while at the same time quantifying what was actually not needed to be done in getting the deliverable result.

In the past I have been party to and sometimes involved in multiple local, regional, global, galactic and intergalactic programs aimed at standardizing processes and methodologies in the name of gaining efficiency. For the most part none of them have been what I would call an unquestioned success. In many instances they actually seemed to have added incremental effort and complexity to the existing model for doing business.

I think what they all lacked was a business case that took the time to quantify what the work effort required to provide the desired deliverable was prior to the change or standardization and what the work effort to provide the same desired deliverable was at the end of the change or standardization process. Hopefully the new work effort is less than the initial work effort required for the same deliverable. The difference between these two amounts is the “Work Not Done”. This would be the quantifiable improved efficiency.

This value is the work that was being done, but now is no longer being done. You want this value to be as big as possible. A positive Work Not Done value means you have removed effort from a process. You have streamlined. You have become more efficient. A negative Work Not Done value means you have added effort to the process. You are less efficient.

For so long we have had it hammered into our collective business psyches that standardization equals efficiency. We strive to standardize our products, our services and our processes in the hope of eking out additional efficiencies and savings. We seem to have pursued this single minded approach to standardization against the competing back drop of infinite specialization with respect to both the roles required for delivering the standardization and the infinite variety of products being created from the standardization for the customers.

Figure that one out. But I digress.

I think the idea of Work Not Done should consist of looking at the work effort, process, functions, roles and people associated with the delivery of something towards an agreed goal, and then deciding what parts of it can be removed (or not done) and still successfully deliver the goal.

I think it can be and should be as simple as that.

Now this may sound suspiciously like some sort of “Lean” principle, where everything that does not contribute value to a customer should be removed.

I guess it actually does sound a little like that, even to me.

However, my point is that if we are going to try and be more efficient, let’s be more quantitative and less qualitative about it.

Stop me if you have heard this one before….

Most of these standardization drives, and by extension the drives for efficiency seem to be based on the concept or principle that if we standardize we will be more efficient. Standardization usually involved the creation of a centralized function group that would be responsible for the standard and its implementation. This group is normally referred to as incremental effort or over-head. They have been added to the existing process where they didn’t exist before. They would be considered “negative” Work Not Done (or “incremental work being done if you prefer”).

There is then the maintenance of the ongoing standardized process where there is significant effort over time from both the centralized standardization group and the other (regional?) groups that have been standardized. At the end of this standardization process there is usually a centralized group that remains in place since the standards must now be managed and the regional groups that are now utilizing the expected standards must report their adherence to these standards back to them.

There is usually no place in the drive for standardization where a baseline of the current effort spent is captured, an expected effort associated with implementing the standardization change is estimated and a resulting and hopefully lower new work effort line is estimated. This would result in a quantified Work Not Done going forward goal is set for the success of the standardization to be measured against.

If you are going to standardize, you ought to expect to get some efficiency out of it, otherwise, why would you do it?

When looking at the mechanics of a Work Not Done business case there would be an initial Work Not Done “Deficit” or debt incurred as there will be a period of time where there will be incremental work input into the process or system in an effort to change the way the current work method is conducted. Once the change has been implemented there needs to be an ongoing return on the Work Not Done investment in the form of the work that is no longer being done during the deliverable process. This is the actual efficiency or work savings paying back on the change effort work investment. It is expected that this Work Not Done payback will eventually cover the incremental cost associated with the change effort, and then start paying dividends in form of savings for the business.

The shorter this payback time, the more efficient the new process or capability is. This is a quantitative approach to the desire for efficiency.

As Robert McNamara (President Kennedy’s Secretary of Defense) once said:

“First get the data.”

I am also going to paraphrase one of my favorite authors here, Robert Heinlein. He said:

“If it can’t be expressed in figures, it’s not science. It is opinion”

Business keeps score, and reports it progress quarterly with figures. In fact many laws have been passed that limit a business’s ability to provide “opinion” on its relative or perspective performance lest they unfairly or inaccurately lead the market. There may be some qualitative (opinion) aspects to how a business reports its performance, but by and large it is quantitative and the figures speak for themselves. It would seem that this would also be a very good way to start looking at all efficiency and standardization programs – via the figure they generate.

I think many managers are of the opinion that simplification, cost reduction, streamlining, efficiency, etc can come from standardization. This is a qualitative approach. There is usually very little analysis (and quantification) of the incremental work required to implement a standardization change into a business. Everybody just seems to know that it is a good thing to do.

Heinlein addressed this type of topic in the past as well. He said:

“If “everybody knows” such-and-such, then it ain’t so, by at least ten thousand to one.”

I am not going to say that the odds are stacked that strongly against standardization in and of itself generating quantifiable efficiencies and cost savings. I just happen to think that most of that low hanging fruit associated with this argument has already been picked and that quantification of performance is needed.

If there is little analysis of the effort required to implement a standardization change, there is usually no time spent examining the Work Not Done payback that should be expected from such an effort. If a business is going to invest capital in an attempt to generate greater efficiency there is normally a return that is expected. Whether it is Return on Investment (ROI) or Return on (Invested) Capital (ROIC) there is a metric to see if you are efficiently using the capital resource.

When we are looking at trying to generate efficiencies, synergies or any other kinds of cost reduction we need to start implementing the same financial rigor into the process that we do when we are investing capital, and try and quantify the efficiency return we are looking for from a labor or a process modification investment. It should be in the form of Work Not Done.

Execution, Expectations

Patience

I think we need to get one thing straight up front: I am a patient person. I just have an internal clock that seems to run at a faster rate than other people’s clocks. Okay, maybe it runs faster than most people’s clocks. Everybody’s clock? Whatever, I don’t have the time to try and explain it.

I think it is also pretty well known that I am not the world’s greatest proponent of meetings and reviews. Staff reviews, team reviews, whatever, I can lose some interest in them rather quickly if there is not something in them specifically for me. I tend to drive toward very short and succinct reviews, when I have them. I prefer to have people doing things as opposed to reporting on the things they have been doing. It’s funny how you seem to get much more done that way.

Why then, you may ask would someone lacking such an apparent abundance of patience, who does not ascribe to a significant amount of value in reviews say that sometimes they are in fact called for? It all depends on what needs to get done, who is needed to get to do it and when it needs to be complete.

Violet Fane is attributed as having said “All things come to those who wait” as a phrase extolling the virtues of patience. I think it has been modified many times and has entered the language lexicon in many forms since then. I guess in Violet’s world I would not be the most virtuous person available.

Abraham Lincoln is one of those that have been attributed as having slightly modified this phrase and said “Things may come to those who wait, but only the things left by those who hustle.” (Somehow I have a little bit of a problem believing the man who had such a command of the English language and penned something as memorable as the Gettysburg Address used the word “hustle”, but it seems to have been corroborated on multiple web sites. I guess I will have to go with it for now.)

What I am getting to here is the seemingly diametrically opposed forces associated with wanting to make something happen within our own predetermined time frames and waiting for something to happen in its own appropriate time frame. Sometimes you can push to get things done, and sometimes you can’t. But which is which as these differences can be crucial to both success and sanity.

We have all seen and have been steeped in the idea that leaders “make things happen”. They are movers and shakers. They act. They don’t react. They shoot, move, communicate and repeat as necessary. They never sit in economy coach when flying. We have all come to believe that the way to be a leader and the way to move ahead is to be first on the scene, the first to recognize and respond to a problem, the first with the answer.

In many instances this is indeed the appropriate course of action. In most cases a leader is the one called upon to recognize an issue, either before or after it has happened and to chart an appropriate course of action to either respond to or avoid the problem. They are required to act, solve and move on to the next problem.

When a leader has the ability to directly address a problem or issue, then they have the ability to be the active participant in the solution that we all aspire to be. However there are many instances where the solution or the implementation of the solution may be outside of the leader’s direct sphere of control or influence. In effect many times a leader must rely on someone else to implement the desired solution or take the desired action.

This is a point where mismatch in expectations regarding the desired solution can occur. If the person who has responsibility for the resolution does not have the same priority for resolving the issue as the person who needs the resolution then there will be incremental stress added to the situation. It is always good to remember that just because you have a problem does not mean that other people see the same problem, have the same problem, or even have a problem at all, for that matter.

So not only does a leader need to be able ascertain if a solution needs to be “driven” versus allowed to occur, they must also know how to modulate the priorities of those that must be relied on to implement the solution.

In many instances this may not be a difficult thing to do. If those that are responsible for the solution are on the leader’s direct reporting team then it is just a simple matter to reassign priorities (understanding what is elevated and what is reduced) and moving on.

However if the person responsible for the solution is not on the leader’s team, then the leader must find a way to make sure that the two group’s priorities are aligned. In many instances this can be done by appealing to or aligning with a higher order organizational priority. Priorities such as revenue increases, cost reductions, margin improvements are universally recognized across an organization. Aligning desired activities and solutions with these priorities are an excellent way to make sure that people align with the desired goals.

No one wants their inaction to be pointed out as the reason a margin improvement, or an incremental sale was not recognized. This is probably one of the best ways to get an action from an external entity or individual.

But what happens when a leader needs something done and there is not a higher order priority that can be aligned with in order to get another party to act on the issue? This is the situation where no matter how immediate the leader’s perceived need is, there is no leverage that can be applied to motivate the party that may be responsible for the activity.

A good example of this type of situation is the hiring process. No matter how much the candidate may want the decision maker to make their hiring decision, there really is not much that they can do to expedite the process. The candidate may be in a position where they would like the selection decision made as soon as possible, but the hiring entity may actually be incited to slow down the process in the hopes of attracting more and better candidates for the role to choose from.

So how does a leader get an activity prioritized outside of their own group? The simple answer is patience. A simple clear and concise explanation of what needs to be done and more importantly “why” it needs to be done will be required. An explanation of the time frames and their relevance will also be helpful. The final key will be the agreement not so much on when things will be done, but when the milestone reviews will be held.

No one likes to go time after time to a review that they agree to hold or attend without their deliverable being complete. Knowing that a review is coming and that there is an agreed agenda item that they must provide an update on is normally enough to get people to move on their commitments, even when there is no apparent downside to their non-delivery.

The idea here is that no one likes to be reminded or re-asked to provide a deliverable regardless of whether or not it may be germane to their own functional requirements. This goes for leaders (and the rest of us impatient types) as well. However the patient leader usually needs to only ask once for a deliverable, if they accompany that request with an agreeable schedule of reviews where progress against that deliverable can be reviewed.

Once the desired deliverable has been supplied, there will no longer be a need for the review and it be cancelled, and then everyone can get back to the real work at hand. Most people dislike reviews, so the added incentive of not having the review once the deliverable is supplied can work wonders.

Reviews rarely serve a useful purpose within an organization. If there is good leadership in the organization, there will normally be good communication, thereby rendering a review somewhat redundant. However across organizational boundaries they can be useful as a methodology for inspiring those outside an organization to provide deliverables that are required within the organization. The inspiration being that the responsible party has the dual drive of first avoiding having to report any potential lack of progress on their deliverable, and second knowing that there will be no additional reviews once they have provided their deliverable.

Just as we have heard management say “The beatings will continue until morale improves”, we can now say “The reviews will stop once the deliverable is provided”. Patience and perseverance will usually prevail.