All posts by Steve

Management, Planning, Strategy

Dilbert Was Right About Strategic Plans

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Strategic plans are essential to the continued well being of any business. We are all aware of this. I have been involved in organizations where the strategic plan was considered the most important document in the organization, and I have been places where it was considered a necessary (or unnecessary) evil. Wherever I have been, I have invariably found that the most successful strategic plans have adhered to what I call the Dilbert Rule for Strategic Plans.


 


When asked by his (pointy haired) boss for his suggestions for the strategic plan, Dilbert responded with


 


“Why don’t we find out what we make the most money at, and do more of that…”


 


Of course this was rejected out of hand as far too simple for a strategic plan. I would agree that for an entire strategic plan it probably is, but for a starting point I don’t think you could do much better. It requires a self analysis of profitability and competitive situations that will be the cornerstone of what the business is doing and will be doing going forward.


 


The key here is to identify your strengths and to build going forward from them. Too many times we tend to identify traits that we want to be strengths instead of those that are strengths, to build our future business on. It is by looking at both the current and desired capabilities that a good strategic plan can be created.


 


Next week I’ll be looking at the Jethro Bodine Clampett school of ciphering in your business. This topic covers the “goes into’s and goes out of’s” of your business. Its basic but it also works.

Humor, Leadership, Management

Read the Management Book Satires

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In this Blog I have refered to several management books as good reference material on how to conduct both sales and your business. Despite our best efforts we invariably will find ourselves in a position that can only be described as comical. Someone will ask you a question, or senior management will give you an order that will cause you to stop, and look for the hidden camera that must be around to capture your response. It is times like these that make me glad that I have read some of the very good satires of management books.


 


Stanley Bing has two great satires out on books that I have recommended. “What Would Machiavelli Do?” and, “Sun Tzu Was a Sissy” are great examples of what really good management content can become in the wrong hands. I would be very surprised if you have not run into a manager as described in these books. It also gives you an idea of what can happen when fundamental principles are practiced (or twisted) to the extreme.


 


That also brings us to Scott Adams and the quintessential “Dilbert”. Despite its skewed view of business and management, I have learned many things and seen many truisms in Dilbert. I have also caught myself in more than one instance where I was going to act or say something that could have been featured there.


 


A broad sense of humor is essential for leadership. Without it we run the risk of becoming a characterization of what a good manager should be. Characterizations and satires help us to understand what the extremes of a good thing can look like. They also help us laugh, and sometimes the best thing to laugh at is ourselves.

Management, Sale, Training

Machiavelli Was Wrong (About Sales)

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In his book “The Prince”Machiavelli states that leaders “must assume that all men are wicked and will act wickedly whenever they have the chance to do so.” To tell you the truth, I have not found this to be the case. In fact I have normally found the exact opposite to be the case. In most of the organizations that I have been in, I have found the team members to be ready and willing to do the correct and proper activities when they are given the chance.

 

The key here is to enable the team to do the right things. Make sure your sales team has the product training and competitive knowledge to successfully compete in the marketplace. If they don’t know what their product can do or what their competition is capable of, then the chance of their misstating your product or corporate capabilities increases. They will take some of the blame for not having the information, but you should take some of the blame for not making sure it was provided.

 

The sales team has the unenviable job of trying to please two masters; the customer who buys their product, and the management of the team that supplies the product. The sales team wants to tell the customer the truth and set expectations appropriately (as well as get the order) so that the customer will not have issues regarding the product performance and the perceived value it brings. The sales team also wants to meet the goals and expectations of their management in order to receive their rewards and maintain their positions.

 

 In business and sales there will always be issues. By providing the right information, capabilities and incentives to the business and sales team, they will be enabled to do those activities that they need to do right, and to continue to prove Machiavelli wrong

Adversity, Communication, Leadership

When the Going Gets Tough – Communicate

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There will always be tough times in business. It is the cycle of things. As leaders we should be working to minimize and avoid them, but sometimes they can’t be avoided. When things get tough, our natural tendency is to keep quiet, keep our head down and work harder. That is not the right response for the business leader facing tough times.

 

When times get tough the business leader needs to go on the communications offensive. You must communicate your issues and your plans to improve the situation, and the progress against those plans to the senior leadership team. It is best not to wait for them to ask. If there are issues and you wait for management to ask you, or worse yet tell you what to do, it will compromise your ability to lead your team.

 

On the other side of things, your team will also recognize when there are issues with the business. You will need to communicate openly and often with them to make sure that they are aware of all aspects of the situation and what their respective roles in it will be going forward. If your team is left with a blank page (no information) the story that they will write will not be the one you want.

 

While open and significant communication may not correct the issues that are driving the hard times, it will significantly contribute to making sure that they do not get worse. People can and will understand that tough times occur. Knowing what is happening and what their roles in it going forward are key aspects of creating and implementing the solution to tough times.

Culture, Fear, Leadership, New Assignment

Fear and Change in the New Assignment

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Every time I have been taken a new assignment in a new organization, the first question that was asked of me was “What are you going to do first?” My answer was invariably the same one. I would reply “I am first going to learn”. I would give this answer to both the people I reported to, as well as the people that reported to me.

 

It is good to come into a new role with a rough idea about what may or may not need to be done. This helps you create the first action plan. What normally happens then is that both your preconceived ideas and your plan rarely survive the first encounter with the actual business realities of the assignment intact. It is then that you learn why the situation is in the state it is in.

 

Machiavelli noted that the two principle ways to govern a new organization were to either go live amidst the existing leadership structure, or to destroy the existing structure and replace it with your own. I have been in corporate cultures where both approaches have been the norm. The team replacement culture usually breeds a business culture of fear, whereas the more inclusive approach will create a more constructive environment for the business.

 

I have found that my personal preference is to go and locate amidst the existing structure. In this way you can facilitate and speed up your learning process regarding the business. The existing team will always have some stake hold in the existing structures and processes of the business, but in general they will also know that a leadership change has been made for a reason. That reason is to usually change the direction of the business. This is usually easier to do with a team that is familiar with you instead of one that is afraid.

Leadership, Management, Solutions

Quit Complaining

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Many times in business you will see foolishness occur, even in your own enterprise. Opportunities that are clearly visible will be missed. Improper directions will be issued. Bad courses and strategies will be followed. It is your responsibility to bring them to management’s attention when you see them. When you do this, remember two things: Bring a good alternative or corrective action, and don’t complain.

 

Bringing solutions to topics and issues that you raise is seen as good leadership. Everyone can see a problem. A leader will take the initiative to bring the accompanying solution.

 

Complaining on the other hand is a pastime that almost everyone participates in at one time or another. However, complaining about topics, issues or directives, without proposing an accompanying solution to your complaint will make you appear ineffective as a leader. Complaining is a non-action oriented event, and a good business leader is action oriented.

 

If you can not find a suitable alternative or solution to an action that you find disagreeable, then say nothing. There probably wasn’t one to be found prior to the action being taken. Any other comments will be seen as complaining, and few people like a complainer.

Data, Decision Making, Leadership

Robert McNamara Was Right

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Robert McNamara was a former president of Ford motor company, A Secretary of Defense under presidents Kennedy and Johnson, and was generally known as one of the first “whiz kids”.  He was involved in returning Ford to profitability in the 1950’s and such global events as the Vietnam War, the Cuban missile crisis and the USS Pueblo controversy.Through out those events he maintained a directive that stood him and the country in good stead. He always said to get the information first, and then check it again.

 

We have all looked at a report, spreadsheet, balance sheet or P&L and after glancing at it said that everything looked in order. With the shear number of documents and emails that we have to look at in one day, we find ourselves falling more and more into this habit. We get to feeling that if things look right, then they must be right, right?

 

To be truthful, in many instances the simple answer is usually the correct one. Your instincts and a scanning of the documents will do. Things will be as they seem.

 

However there will always be the exception to the rule. You can not allow a bad habit to lead to a bad result. You will need to get into the good habit of double checking and triangulating your information. You need to understand where the information you are working on has come from. There are very few events that call for such an immediate response that you cannot re-look at the data before acting.

 

A good manager will look at the information and if it looks right, they will take action. A business leader will look at the information and if it looks right, will look at it again to make sure that it is right, before taking an action. That’s how you make sure you are acting on a studied decision instead of reacting to an external stimulus. Sometimes it might appear right, but sometimes appearances can be deceiving. Checking the data again seemed to work well for Robert McNamara.

Focus, Long Term, Management

Activity and Progress

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Lulls happen in business. It is very rare that there is a prolonged period of non-stop functional engagement. Holidays, vacations, general economic and market changes occur so that sometimes there is just not as much business to conduct as there is at other times.




It is normally at times like these that management comes by to see what you are up to. We’ll talk about this in another article.




What we will talk about here is the difference between doing something and making progress. Remember how your mom would always think of something for you to do if she found you relaxing or watching TV. That was activity. The management equivalent can be the number of reports, plans and strategies that you will be asked for as a result of any changes to the general business, market or economic conditions that may arise.




Progress for your mom was you moving from elementary, to middle, to high school and beyond. Sure there were report cards every quarter, or semester, but the overall progress toward the goal and objective of graduation had a significantly different and longer time line. The current management equivalent for progress is not so easily quantified. We seem to be in a quarter (3 month) over quarter cycle where year to year changes have lost their importance.




The key is to realize that progress takes time. Activity can be immediate, but can the advancements it generates be sustained? Perhaps, but we seem to have become very focused on immediate responses and gratifications. We need to understand that activity is immediate and short term, and to also understand that there may be quarters where the activity may not put us at the levels that we want. We need to keep our focus on the longer term goals and objectives if we are going to really make progress.

Leadership, Management

Office “Rumours”

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Back in the 1980’s one of the biggest musical bands of the time was a group called Fleetwood Mac. They were great. One of their biggest albums of the time was an album called Rumours. It was a great album. However, from a business point of view “rumours”are no good.

 

Rumors are what occur when you do not communicate regularly with your team. They will invariably be worse than just about anything that reality can offer. If people are presented with a blank page, the story they write will be worse than the one you will tell them.

 

Once started rumors take on a life of their own. You only lend credence to them even when you deny or rebut them. It almost seems that people would prefer to believe the worst hearsay instead of the actual information – if they hear the rumor first.

 

The key is to get ahead of the curve. Regular team or all hands meetings enable everyone to hear what you have to say, and to get questions and concerns out of the way. It is more difficult for rumors to get started if everyone has the same level of information, and all heard it at the same time.

 

Fleetwood Mac’s Rumours wasgreat to listen to. All other rumors in the office shouldn’t be heard.

Decision Making, Leadership, Management

No Peanut Butter

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You’re running your business. You’re paying attention to the big issues and the details. You’re on your targets, making your numbers and living within your budgets. Life is pretty good. Then at one of your boss’s staff meetings you are told that there is a headcount reduction scheduled and you are told what your participation in this activity will be. It turns out that other functions are not performing as well to their targets as you are, and now all are going to have to participate in the unpleasant task at hand.


 


It is the dreaded “peanut butter” effect.


 


The peanut butter effect occurs when it is easier to take an overall general action than it is to take a focused and specific targeted action. It can be 10% reduction across the board instead of a greater number in the offending groups, or a travel or a hiring freeze for all instead of just for those declining functions. I think we have all seen it.


 


Peanut butter provides a disincentive to good business performance. If a function that is performing must participate in a down side activity to the same level that a non-performing function does, you are mitigating the cost of poor performance to the underperforming function.


 


Fast forward to now, and you are now the leader. If your business is not performing to its overall requirements, and you are looking to take actions early on to try and bring its bottom line back on track, make the effort to understand where both your good performance and your problems lie. Take specific, focused business actions based on the businesses performance. Don’t spread peanut butter.