Category Archives: Accountability

Accountability, Achievement, Analysis, balance, Challenge, Change

Millennials

If you have anything to do with electronic communications or media, you have probably heard about or possibly have already have seen the video by Simon Sinek on millennials in the workplace. It is very good. If you haven’t seen it, you can see it here:

https://www.youtube.com/watch?v=hER0Qp6QJNU.

There seems to be an ever increasing amount written, or in this case videoed in business about the most recent generation to enter the work force, millennials, and how businesses must change and adapt to deal with them. With this in mind it seems that I should be no different and add my input into the conversation. However, I do think I may have a different take on the situation.

Before we go too much further, let’s do a little generational definition work. There are at the current time predominantly three generations working today: Baby Boomers – who are defined as those who were born after the mid-1940s and prior to the early 1960s (the youngest of whom are now in their mid-fifties and approaching the end of their working period), Generation X – who are defined as those born after the early 1960s and into the mid-1970s (the youngest of whom are now well into their forties and are entering their prime working period), and Millennials – There are no precise dates for when this group starts or ends, but most demographers and researchers typically use the early 1980s as starting birth years and ending birth years ranging from the mid-1990s to early 2000s.

The oldest millennials are now reaching their thirties and have been in the work force for some time, while the youngest are either preparing to enter or have just entered the workforce.

The reason I bring up this generation definition and demographic information is to set something of a baseline when discussing all the generalizations that are being made. We all like to sort things into groups as it makes it easier for us to model and respond to group behaviors as they affect the business performance. Although individual traits can vary widely across a demographic, I will try to adhere to those demographic traits that seem to be widely accepted as baselines.

As an aside, I have often said that demographics can be broken down into only two groups of people in the world: Those that like to divide people into two groups and those that don’t. But I digress….

In Sinek’s video discussion he points out many of the generational characteristics of the millennials. He also states several times that it is not their fault that the millennials believe and behave as they do. They are the products of their parents, schools, societies and times. They were taught that they as individuals matter and that their opinions and output count regardless of accuracy or being correct. They were the generation that got “participation trophies” in competitions when they did not win. They now enter the business world at the standard entry level positions and expect the same sort of attention and acclimation that have received throughout their past regardless of their performance.

In short, their baby boomer and generation-x parents gave them unrealistic expectations of how the business world would work, and now so much is being written (and videoed) about how the business world is going to have to change and adapt to these somewhat unrealistic expectations.

Really?

It is quite possible that perhaps I missed the same sort of business workplace demographic analysis associated with expectations of the baby boomers (who still make up the largest demographic in the workplace) or generation-x as they entered the workplace. I suppose it was just expected that they would have to adapt to the environment they had if they expected to be successful.

I think it is safe to say that everyone wants to matter, and have an effect on the business or organization that they work for. I think most people want to feel and be fulfilled by the work that they do. This has been a standard for all new hires from all generations. I don’t think that the millennial generation is the first generation that expected and felt entitled to these roles without first proving themselves.

What is interesting to me is that it seems that the millennial generation is the first generation that business is actually contemplating changing its order of things in order to better accommodate these expectations. At least there is a significant amount being written about how business should, may, possibly change in order to better accommodate the coming millennial workforce generation.

As a brief example, in the past the workforce migrated from the cities to the suburbs to better accommodate their home and lifestyle choices. They did this knowing they would have to commute to work. Over time some businesses migrated out of the city centers to better accommodate their work forces (and truth be told, to reduce the costs associated with expensive urban center floor space). This migration occurred across decades.

There is now a widespread belief that millennials are a key factor in the new gentrification of many urban areas, and as a result some businesses and organizations are contemplating migrating back to the same urban centers that they left. This is being contemplated in order to better accommodate and attract a portion of the workforce who by all measurements are the most junior and currently least productive components.

To be fair I think that there are several other factors that are also coming into play when we look at some of the changes that organizations are both contemplating and implementing. It is possible that some of these changes have been instigated as a result of the millennial influx into the workforce, and some of them may have already been in process and are just attributed to the millennials based on the timing of the change and the generational influx into the workforce.

The millennial generation is the first generation in the workforce that grew up in the connected world. They are video games, personal computers, and cellular phones. They are immediate feedback and immediate gratification. They have seen the rise of virtual offices and have watched their parents work from home. I have a couple of kids that are millennials and I watch them and I learn from them and their friends.

They are also, as Simon Sinek said in his now famous video, a generation that has come by this feeling of entitlement naturally. Their baby boomer and generation-x parents were determined that their millennials would not fail. Sometimes this was accomplished through the efforts of the children. Many times it was through the efforts of the parents to reduce the obstacles and lower the bar to assure clearance.

The result is an expectation of success, or at the very least accommodation of their expectations regardless of the effort expended. They have been told how good they are for so long that they believe it. They have been given trophies for playing regardless of whether they have won or not, to the point where they believe their participation is valuable in and of itself.

I think that there needs to be recognized that there is a symbiotic need between the millennial generation workforce and the business organizations of today. Millennials will need to work to survive and organizations will need millennials in their workforce to pursue and grow their markets. If organizations make drastic changes solely to accommodate millennials they risk alienating the current majority of their workforce who are not millennials. If millennials do not learn and rapidly come to grips with the idea that there may not be participation trophies and progress can be based on competitive merit, they too will face a very bumpy acclimatization to business.

The speed of change has increased. What once took decades can no longer be expected to take decades. However, business still requires a fiduciary responsibility to its shareholders. What makes sense to the majority of the business at large in general makes sense for the business. Business and organizational change based on millennial matriculation into the workforce should be expected as their demographic increases over time.

On the other hand, I await the next wave of business articles and documentation on how the millennials are going to have to change and adjust their habits and expectations in order to participate, let alone succeed in the organizations that they enter. I don’t think that business can be expected to change to the level to wholly meet the expectations that millennials have. There will need to be some sort of middle ground established so that neither the business nor the millennial will be overly disappointed or disillusioned in what they get.

Accountability, Change, Hiring, Planning

Do Your Homework

I don’t know how many others out there have experienced the joy (ahem…) of looking for a new position, but I know I have in the past. It is never really any fun. It is an effort. The uncertainty creates discomfort. I have noted in the past that I am not especially good at asking others for help. I have met several other people who seem to be very good at asking for help and it would seem that they almost prefer others to do their work for them, but me not so much. I have tried to compensate for this by trying to freely offer help and thus enabling others to avoid the issue of having to ask me for help. On several occasions this willingness to offer help to others in their job searches has caused some unexpected problems.

I think the basic equilibrium point for most of us is to be a contributing member of an organization, a business and society in general. That simply means that most of us like to work and be employed. When we are not employed, or face the prospect of not being employed we are well out of our comfort zone. After all, just because we may not be currently employed doesn’t mean the bills and expenses associated with our lives will stop or be put on hold.

Much has been written regarding the requirement of people to be flexible and able to change when it comes to employment. On a conceptual level this is an admirable goal. When it comes to forced practical application for specific individuals it may be a whole other story. It is difficult to maintain a professional equilibrium when you are both figuratively and literally out of your employment comfort zone. How people handle this discomfort varies. I have found that there are a few factors that affect an individual’s performance during these times.

The first is experience. Have they been in this situation or position before? Knowing how the process works and how to both ask for and accept help is important. The second is duration. The longer people are looking the longer the twin (and opposing) factors of the (calming) understanding the situation and the (stressing) desire to return to employment equilibrium have the opportunity to take effect. The final and for me most important factor is preparation. How prepared were they for this situation, and how prepared are they to be able to deal with it?

The effects of the experience and duration factors, as one would expect, can only be learned with time. Experience is what you get when you don’t get what you want. The only way you get it is to actually go through it. I think it is the preparation factor that everyone to one level or another can affect. With a little preparation and homework, it may be in fact possible to at least partially mitigate the effects of the other two factors.

I have also noted in the past that with the possible exception of sales, which is has a performance rating that is primarily quantifiable (i.e., how much was actually sold, or the amount of orders received) almost all other disciplines have a qualitative aspect to their measurement. That means that an individual’s performance perception will at least partially be opinion based.

And as we all know, opinions do vary.

Just ask western figure skaters when it comes to eastern bloc judges.

We all must understand that while we all may feel we are operating at the peak of efficiency and performance, there are potentially always eastern bloc judges in management that may not agree.

We must also understand that companies are always under cost reduction and performance pressures. Market and competitive fluctuations may also drive corporate employment decisions that may not be based on performance, but rather on financial necessity.

There is the doing of your homework and being prepared for the potentiality of needing to find a new role, and then there is also the doing your homework in the actual search. As I said I like to try and offer my help, such as it may be, to those that may be in the search mode.

Something about “There but for the grace…go I” sort of comes to mind, meaning if I were in a similar position I would definitely appreciate those that freely offered their help.

There have been many times where I have met people, networked and asked how I may be able to help, when I have had some variation of the following conversation:

“Get me a job in your company.”

Really? I am here to try and help you get a job, not get one for you. What do you do?

“I can do anything.”

Really? Do you have a resume?

“Not with me. It’s a few years out of date and a little long, but I’ll be glad to send it to you. When do you think I can start?”

Here is a simple rule for networking or meeting with someone who might able or willing to help you in a job search: Do your homework. Help them help you.

Be concise. Do a little self-analysis and understand what it is you do and are good at. Accountants normally don’t make good sales people, and vice-versa. They normally have significantly different skill sets involved in their roles. Don’t tell anyone you can do anything. It makes you sound like either an egotistical braggart, or at the end of your rope desperate. Neither is a good image to portray.

Have an up to date resume ready. It should be two pages, no more. It doesn’t matter how many years you have worked. It doesn’t matter what you think you have done. Most people or companies are really only interested in your roles over the last fifteen or so years. Adding much on your accomplishments and positions before that doesn’t add to your value as they may be considered somewhat dated. If you have won a Nobel Prize or a Congressional Medal of Honor, it may be acceptable to extend the length of your resume to two and a half pages, but only if you have one, or both of those awards to document and explain. There really are no other excuses for a resume of greater length.

Do some homework on the company that the person you are meeting works for. All companies post many of their open positions on their websites. Have an idea what might be available. Be knowledgeable about what they do and where some of their openings are. Give the person you are meeting something to work with.

Many industries may be big, but the business world can be surprisingly small. Look up who the company’s competitors might be and check their sites for potential openings. It’s called “Networking” for a reason. People know other people in the industry and may be able to give you a referral if you can articulate what it is that you want, where it might be, and why you think that.

Many times when networking we forget just how many different people we know and the various companies that they work for. Providing this type of information does wonders in jogging memories and getting things moving.

It’s been said that you only get one chance to make a good first impression. This is especially important in the somewhat higher stressed environment of a job search. Coming to a networking meeting unprepared does not help with the first impression. You will be asking someone to give you some of their most valuable resource: time. Don’t make them feel that you, or they may have wasted it.

Take some of your time first and do some homework. Anticipate what questions you may be asked, and prepare your answers ahead of time. Do your research on companies and positions so that when asked you can identify the opportunities that are a good fit for you, and minimize the time that you are actually requesting. Document who you are and what you can do. Provide it. Don’t make them ask for it.

People understand that when you are out looking for a position that you are also looking for help. Make it easy for them to help you. It is all about time. Don’t expect that everyone will have all the time you need in order to be helped.

Please reread that last sentence just to make sure you get the meaning. People will be willing to help you, but they probably won’t attribute the same priority to it that you will. Time is of the essence and will be the medium of exchange. Spend a little of your time doing some homework so that you make it that much easier (and that much less time involved) for them to help you.

It will be time well spent.

Accountability, Achievement, Empowerment, Leadership, Process

Ambivalence

I didn’t know if I should write about ambivalence or not. I didn’t seem to feel too strongly about it one way or the other.

Ambivalence seems to be creeping into almost every aspect of our professional world. I can this tell by the number of times that I hear comments along the lines of “It is what it is…” or “We are where we are…” We seemed to have stopped learning, risking and striving. Instead of making things happen, we are now following a process and waiting for them to happen. What’s worse is that it seems to be a malaise borne trend that is increasingly difficult to counteract.

I don’t know if I can truly draw the analogy between the rise of the process driven organization and the perceived rise in ambivalence in the organization, but it does strike me as potentially more than coincidence.

Before the rise of the process, it was incumbent on the leader to drive the business machine. Creativity, anticipation and a drive to achieve the goal were the keys to their success. Mistakes were obviously made, but so was considerable progress. When looking at Jobs, Gates and others, they chose to break new ground, not follow a process. It was because of their new approaches to goal setting and problem solving that they were successful, not in spite of it.

There seemed to be no question as to what needed to be done and how to do it. They were going to get it done regardless of the adversity and it was going to be done their way. They were the ones that were Accountable, Responsible, Consulted and Informed. (That’s a reference to the ever more popular RACI matrix, where depending on the process being followed, there can be separate entities established for each of those topics.)

I think ambivalence comes from a loss of commitment, and the loss of commitment comes from the loss of ownership. It seems more and more that people no longer own the problem and solution relationship. They don’t even own the process of arriving at the solution. They are only required to follow a proscribed set of steps associated with the process that has been developed to enable the team to reach the solution.

When this happens it becomes that much easier to say “It is what it is.” It becomes sort of the modern mantra for saying “I was doing what I was supposed to do, so it is not my fault.” It is the acceptance of saying even though I was doing my job; I’m not responsible for the results.

I have written (ranted?) in the past that not quite good enough is now the acceptable standard. I am beginning to believe that the process based organization may also be at least partially at fault here as well. We seem to have shifted the focus away from actually getting things done and now focus more on the way things are done.

This behavior results in the rewarding of those that conform and administer the desired process the best as opposed to those that can creatively solve problems by taking ownership and driving the issue to resolution. And if you are only going to be recognized for how well you can follow a process as opposed to what you can actually conceive, do and solve, what sort of commitment are you going to have?

I suppose there are those that can in fact be fully committed to a process but I think the majority prefer to commit to a goal. This is where that inspiration and commitment thing comes back into play. I believe that people get inspired and committed to goals, not the process.

In May of 1961, then President John F. Kennedy set this memorable goal:

“I believe that this nation should commit itself to achieving the goal, before this decade is out, of landing a man on the moon and returning him safely to the Earth.”

He did not commit to the process of launching rockets. He did not commit to the process of training the best astronauts. He understood that while these processes would be a key to the Space Program*, he also knew that they would inspire neither the participants nor the public (who were in this instance the stakeholders that were being asked to pay for the expensive project.) He committed to the strategic goal of the Space program: namely getting to the moon.

*A little information on the difference between Programs, Projects and Processes. It may be a little arcane, but please bear with me as it will help with the example, as well as with better understanding the ambivalence in business today.

The definition of a program is usually that it is the sum of a related group of projects. The Space Program included a number of contributing Projects and sub-projects. Building the rocket was a project; however that project was further broken down into sub-projects such as the building of the command module, the building of the booster engine, etc.

The definition of a project is usually that it is a unique endeavor with a beginning and an end undertaken to achieve a goal. The building of a command module was a unique endeavor as it was the section of the rocket that would house the astronauts and control the flight. It contributed to the overall space program.

The definition of a process is usually that of a repetitive collection of interrelated tasks aimed at achieving a certain goal. The building of the command module was the project. The way that they built it was the process. I am not so sure that there were that many repetitive interrelated tasks associated with building these command modules as they were all essentially hand, but I think you get the illustration. Actually upon reconsideration when you start thinking about all the construction, installation and testing functions involved with the assembly of the command module there may have been ample room for many processes.

In a more business and organizational example, Steve Jobs set goals for his organization regarding what computing and personal devices should look like and be capable of in the nascent electronics markets. Bill Gates set goals for his organization regarding what operating systems should contain and how they should perform in the new software markets. Kennedy set goals for NASA (and the country) in what has become known as the space race. There was a total organizational commitment to the goals set by these respective leaders.

No one looked around and told Kennedy we are where we are, or it is what it is, when faced with the competitive successes of Sputnik or Yuri Gagarin at that time.

I think that as the Space Program progressed it should have taught us that as our goals advance, the projects and more importantly the processes must also be redefined on an ongoing basis. Just as the Gemini Program gave way to the Apollo Program which in turn gave way to the Space Shuttle Program, there was a continual refresh of the supporting projects and processes.

Allegiance and commitment are always made to the goal, not the process. I think ambivalence starts to creep into our structures when the new goals are only incremented from the old and the objective becomes more process oriented and less goal focused. I also absolutely believe that process will continue to be a key to the success of almost all future endeavors, both business and national. It is the way we retain what we have learned from past goals and apply it to the future goal to avoid making the previously encountered mistakes.

My issue is that when the following of a process gets so rigorous and is so focused on avoiding past mistakes that we are no longer making any new mistakes we begin to become process bound. When that happens we are arguably no longer making progress or owning the goal. We are instead focused on the process, and we become somewhat ambivalent to the goal.

I am pretty sure I know how I feel about that.

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.

Accountability, Alignment, Character, Conflict Management, Leadership

Saying Yes

I have written a few times in the past about the requirement that leaders are obliged to present a dissenting opinion when they genuinely feel that there may be a better alternative solution. I have also noted that that the word “no” can be one of the most important and valuable words in the leader’s lexicon. Having a different or contrary opinion does not make anyone any less a member of the team. It makes them someone who continues to maintain a different perspective on the business knowing that the diversity of opinion is a key to business health.

It is an exceedingly difficult line for a leader to walk. Many times a dissenting opinion can be confused with open opposition, which is something most managers cannot tolerate. Sometimes management doesn’t want to hear a differing opinion. Many times they can be quite content with a single perspective. What do you do when you have much to say to the contrary, but all that is desired of you is to hear you say “yes”?

I think we have all probably been in a situation like this from time to time. Most of the time situations like this are usually transient. Sometimes there is complete alignment on business topics. Occasionally there is divergence of opinions. Many times there are aspects of both alignment and divergence of opinions. This is what is known as a healthy business environment.

In this sort of business environment differing opinions are understood and accepted. The challenge is to the idea or the process, not the individual. The objective is to try and get to the best solution. As I said, this is in an ideal environment. Unfortunately individuals are prone to differing behaviors in the business environment.

Issues such as cultural differences, personalities, management styles and differing individual versus corporate objectives can come into play. Any one or more of these factors can contribute to a situation where the differences of perspective, opinion and approach are no longer the exception to the management alignment, but seem to become the standard.

In many instances there can also be “opinion drift”. If another manager sees that the alignment of opinion is better rewarded than the healthy discussion of alternatives, eventually a polarizing of positions and opinions can take place. It can fall more and more to the leader to make sure that the contrary is both heard and considered.

In time a situation can evolve where management is no longer looking for a specific or studied input on any new idea or direction. As more and more opinions drift into total alignment with management all that is desired is for all the various team members to align and say yes to each new process or direction and immediately get behind it. There can be a total breakdown in the structure of the healthy challenge business model. Contrary views and opinions in such an organization can begin to be viewed as oppositional and divisive.

Before leaping to specific conclusions along this line of thinking, as always it is best to take a step back to understand and assess the situation. Sometimes it only feels as though the stars are aligning and that everyone is aligning without due consideration. A complete management alignment along the lines described is a pretty rare event in my business experience.

On the other hand, I can hear the words my dad used to say in just about any situation that could even be remotely considered a parallel to this. His favorite was:

“Just because you are paranoid doesn’t mean that they are not out to get you.”

He would also say:

“Aim low because the bad guys* could be crawling.”

*Dad actually used a more colorful word for “bad guys” that also started with a “b”, but I know my mom occasionally reads this and she doesn’t like it when I use such colorful language.

Needless to say, you needed to take what dad said with a grain of salt.

Sometimes the best approach to a potential situation, particularly one that involves the input and behavior of others, is to not be in a hurry to resolve the perceived issue. This approach runs almost entirely contrary to everything we have seen, learned and thought about business leadership.

We have learned that those who recognize the issue first, are the first to take steps to resolve the issue and those that do in fact resolve the issues first are the ones usually rewarded. This approach does normally work when identifying and resolving business issues. However when the issues are not business or performance in nature and are more personality or management style related, an immediate and direct approach may be difficult.

It is best to remember that it always takes two to have a difference of opinion. In most instances no one sees themselves as being either wrong, or in the wrong. Sometimes a mismatch of this type can occur.

It is again at times like these that I think back to my dad and what he told me about these instances. He said:

“I may not always be right, but I am always boss”

I think that this was his way of telling me that while I was under his purview I was the one responsible for finding a way to rationalize our cultural or generational differences. Since he was the one paying the bills at that time, it did make a certain amount of sense.

However the parent offspring relationship is not the same as the leader team member relationship when it comes to differences of opinion. Leaders need to understand that differences of opinion, even prolonged ones, are something that should be expected. The recognition by the leader that opinion diversity needs to exist for the business to stay healthy is key. Differing opinions do not mean wrong opinions.

One of the best ways to establish a baseline for dealing with these management differences is to revisit past differences with an eye toward what the different positions were and what the eventual resolution of the difference was. Facts are normally everyone’s friends. The historical record has a funny way of refocusing the disagreement away from positions and more toward resolutions.

Business is about performance. Performance comes from taking the right positions and making the right choices. The historical record is always very clear along these lines. If the right positions are taken, contrary or aligned, the business performance will reflect this. If they weren’t then there are usually second and third “adjustments” that get made as the corrections are implemented.

I have found that members of teams that I have been leading are in many instances much closer to the specific issues at hand than I was. Because they have been closer they usually had a better vantage point from which to derive a solution. It has served me very well in the past to stop, even when I am so absolutely sure of the elegance, purity and accuracy of my solution, and truly understand why they are saying “no” when all I wanted to hear was “yes”.

In many instances I was fortunate to have done so. We can all be prone to having blind spots in our solutions when we are so sure of their accuracy. When someone wasn’t ready to go along with the desired solution, it usually was for a good reason, and that reason probably needed to be reviewed and possibly incorporated into the actual solution.

It almost always made for a stronger final solution.

All leaders will always want their teams to say yes, but will be open to addressing and incorporating differing or contrary opinions. This is how solutions are strengthened. Other managers may be less tolerant and accepting of differing positions with the resulting opinion drift I mentioned before.

Understanding which environment you are in will be a key in deciding how you can respond when someone is looking for you to say yes.

Accountability, Empowerment, Implementation, Process

Taking a Step Back

Normally in business when we mention the phrase “taking a step back” people immediately think of accepting a position or assignment with a perceived lower title or lower set of responsibilities. That may well be the case, but that is not the step back that I want to discuss here.

In business we all have our areas of responsibility. These normally come in the form of job descriptions and objectives. Simply put these are the things we do and the targets we are supposed to achieve. We are provided directives and incentives associated with them. We are incited to focus only on our specific pieces and parts of the business. With all that focus it is very easy to become somewhat myopic with respect to the overall business or organizational picture.

Sometimes all of us need to take time out of our ever more hectic days, take a step back and look at the overall business picture and what our specific part or role in it is, to see if what we are doing or have done is still fully aligned with the greater good.

As an ever more refined and specific business process is viewed as the clear path to greater efficiency and more profits, the incentive for each participant in that process is the ever refine and narrow their focus to their specific role in that process. As this structure evolves, organizations end up trying to create integrated end to end customer solutions out of ever more discrete and individualized work components. As the number of hand-offs in the process increases, the disconnection between the solution components increases as well.

In the extreme you can end up with a number of disconnected groups performing discrete unrelated activities (all while following a “process”) that results in a final work product that may not meet any of the requirements that were initially assigned to it. Everyone may have done everything that they were responsible for doing, but the final result doesn’t meet the need.

I think that much of today’s process orientation has originated in the Project Management discipline. (I have gone through the Project Management Institute PMP (Project Management Professional) training and certification process and do have a PMP accreditation.)

Part of the process of managing a project is to create what is called a Work Breakdown Structure (WBS). Creating a WBS is the process of subdividing project deliverables and project work into smaller, more manageable components (A Guide to the Project Management Body of Knowledge (PMBOK Guide) 4th Ed., pg. 103). It is described as the decomposition of the work to be executed by the project team to accomplish the project objectives.

But isn’t that essentially what every process is? Isn’t every process a series of work components that at the end of the process are supposed to deliver a finished work product or solution?

So enough of the esoteric discussion of the similarities of projects and processes. Where does this all get us and what does it have to do with the position I have put forth about taking a step back?

In a project there is a project manager. That person is vested with the responsibility of managing that project from end to end. As Harry Truman would say: “The buck stops there”. It is the project manager’s responsibility to make sure that all work components are aligned and additive in the direction required to complete the project.

In today’s organizations where parts are globalized, parts are regionalized and other parts are verticalized, all in the name of greater efficiency, it is almost impossible for someone to call themselves the “owner” of a process that spans multiple organizational structures. Organizations and people within those organizations may own pieces of the process, but there are precious few with the purview of a project manager who can review the process from end to end.

Once the process has been decomposed into its smaller work components, and those components are distributed to different organizations and groups, it seems the overall end to end view of things gets lost. Responsible parties seem to focus only on their specific work component. They perform their task and pass it along to the next responsible group.

It has been shown that when dealing with a uniform process all tolerances or margins for error are more or less normalized out. What that means is that in a uniform environment there will normally be additive and subtractive variances. Estimates will normally be either a little high or a little low, but on the average they will cancel each other out. This is the model that is used when the process is created.

When the process is decomposed into its component functions and then distributed into different and somewhat unrelated organizations, it can no longer be looked upon as a uniform process. It is probably more accurately defined as a “Random Variable” process. This is a process that is not uniform and where the variation in one group performing a work component has no effect on the performance of another group performing a different work component.

Okay, so what does this mean?

What is means is that when a process is no longer uniform the variances associated with the various work components no longer have the tendency to cancel each other out. They have a tendency to add together to create ever larger variances.

The net result is the creation of a process that by its very nature will not deliver a desired solution. Each group that is responsible for a work component can and will provide an acceptable output, but the sum of these outputs will invariably not be an acceptable solution.

A good example of this phenomenon can be seen in the creation of cost structures. In a project that is controlled by a single project manager, some costs will be estimated high, and some will be estimated low, but on the whole the costs will balance out. In a cost process where there is no single owner and multiple groups and disciplines involved, all costs will be estimated high (in an effort to make sure that all individual contingencies are covered) with the final cost estimate being unacceptable to the customer.

As I noted, in a project environment the project manager has oversight and control of the costs and processes associated with the project. Costs and activities must all fit within the overall envelop associated with the project and the project’s profitability. Variances within any specific group are then viewed from the point of the overall project. This ownership and oversight does not usually exist within the decomposed process. It is due to this comparative lack of oversight that a uniform process can devolve into a random variable process over time.

It is due to this sort of inertial force associated with process decomposition that we all need to periodically (read “frequently”) take a step back and review our roles and deliverables. In a greater scheme of things all that we do can be viewed as part of the ongoing business process. There are pieces that we can control and pieces that we must rely on others for. We need to make sure that we are in fact maintaining our alignment with the overall organizational goals and not just maximizing our specific work products.

It may sound a little counter intuitive. The idea should be that if we all maximize our work products, then the final deliverable should be maximized. In theory it should work. However when the goal is to minimize, or reduce or drive greater efficiency, sometimes maximizing does not work as well or drive the desired solution.

Take a step back and think about it.

Accountability, Achievement, Leadership, Self Analysis

Credibility

Let’s make certain that we are all on the same page from the start here:

Your personal credibility is the currency that you use for all of your business transactions. And like any other currency it is subject to many events and actions that can affect its value. Just like the value of the Dollar can fluctuate with respect to other currencies, the amount of credibility attributed to you can also fluctuate with respect to other leaders.

I had just read some article about writing that said something to the effect of “write killer first sentences to make sure you hook your readers into your story”, and thought I would give it a try. Somehow it doesn’t seem to have me hooked, but then again I’m writing this instead of just reading it. I await feedback to see what the rest of you think.

By the way, I didn’t finish the article. I guess I wasn’t fully hooked.

Despite the somewhat ham-handed introduction I want to look at the role that our credibility plays in business and leadership. I think it is important in that our personal credibility can be the difference between “compliance” with our requests and directives, and “commitment” to our leadership. Compliance occurs because you may inhabit a role where others who report to that role must respect the requests of the “office”. Commitment occurs when the transition is made from aligning with the requests of the office to aligning with the requests of the person in the office.

It’s subtle, but significant.

Credibility is a pretty strange concept. You can increase your credibility by doing incredible things. On the other hand you can decrease or even destroy your credibility by claiming to be able to do incredible things. Credibility is somewhat similar to a retirement or savings account. Credibility is built up over time with continually reinforced deposits. It is added to slowly over time. However it can be destroyed or fully withdrawn as the result of a single, poorly planned action.

Your credibility is based upon other people’s beliefs in your abilities.

Think about that for a minute. Your credibility is not entirely based upon your abilities. Your credibility is not entirely based on what you think you can do, or even on what you know you can do. It is based on what you have done and other people’s opinions of your abilities and what you have done. This idea can lead to multiple mismatches within the business organization.

You can believe you are credible, when others don’t. You can believe someone else is credible when others don’t. You can believe someone else lacks credibility when others ascribe credibility to them. All of these situations can add to the complexities already infesting the business process.

Many items contribute to people’s opinions. It is not just what they observe, but also what they are told, what they hear, and how it is presented. It is also based upon what people want to believe as well. People are required to sort through a blizzard of information on a daily basis. While we all strive to be as objective as possible, sometimes based on the inputs we have received it may be difficult. Such are the vagaries of credibility.

I guess that sometimes credibility doesn’t seem to matter. As I have noted before, we have all been through the various political election seasons where various politicians are contending to see who can appear to be the most credible while claiming to be able to do the most incredible things. This would seem to violate almost all of the precepts associated with credibility, but such is the case for politics. This seems to be a case of who can tell the most people what they want to hear, and not so much what they need to know.

However there are those in business that can also be described as being politically astute. I think that may be where the term originated with respect to business performance. We all know these types. They are more capable of being able to tell people what they want to hear and not so much what they need to know. We look upon them with a mixture of both derision and jealousy. They are able to take what appears to be failure and position it as success. They can take the smallest success and spin it as a game changing moment in business. They seem to be able to create credibility out of almost nothing at all.

Personally, I prefer to see the data.

Here in lies the issue with credibility. It is almost always a personal preference issue. By telling someone something that they want to hear, no matter how outlandish or impossible you can increase your credibility with that person. At the same time there may be those that recognize the implausibility of those statements and will accord a decrease in your credibility because of them.

Every time you say something or do something in business, you change your perceived credibility. Statements are interesting in that they can affect your credibility twice: once as they are first made when people can consider the relative plausibility of them, and then again a second time when the result of the statement can be measured out against the reality of the business performance.

It is somewhat interesting to me in that the credibility associated with actions can only be measured once, when they occur.

It is the action in business that is the credibility defining event. Promising huge growth, or market defining strategies, or game changing products are all well and good. We have all seen many such announcements. It is the delivery of growth, the implementation of strategies and the introduction of new products that define the true credibility. Sooner or later all statements or claims will eventually need to be backed up with performance and attainment.

We have all seen the effect of setting expectations in the valuations of companies in the market. During the quarterly earnings announcement times the company’s actual performance is measured against the markets perceived expectations for earnings. Those companies that consistently “miss” these expectations tend to be priced lower, because the expectations that they set lack credibility.

In short credibility is based on doing. It can be based on doing what you say you can do, but the key aspect is the doing. Meeting the deadline. Achieving the goal. Doing it almost as a matter of course. It seems that Tom Peters, the co-author of the book “In Search of Excellence” has been attributed as the first to coin the phrase:

“Under promise, over deliver.”

It sounds simple to do. If it was, everyone would have a high credibility rating. The reality is that not everyone ascribes to this approach. That’s why we have “marketing”.

Many things go into the credibility that you are accorded. Your level of confidence, how you position or phrase things, it may even be somewhat indefinable as in “charisma”. In the final analysis the end result of what you do will be the primary contributing factor to your credibility. If you are recognized as someone who does what they say they will do, then over time you will build credibility. If that is not the case, you will very quickly lose credibility. And once lost, credibility is very hard to regain.

I wish I could think of a short cut to generating credibility, but I can’t think of one right now. If someone else claims to have one, I might question their credibility.