Leadership and the Generations

This is another of those posts that seemed to have started out as a great idea, and I knew just what I wanted to say. As I got into it further my commentary took me in another direction. Undaunted by this I adjusted the title and tried to edit and align the ideas that I had with the direction I took. After doing that, I actually kind of like where it took me.

I just read an article purporting to examine the new demographics associated with the latest generational group known as “Millennials”. Generations are normally “defined” by the major global events associated with the starting and ending of the generational cycle. For those of you that are not familiar with the various generational names and eras in the US, they are as follows:

2000/2001 – Present – New Silent Generation or Generation Z
1980-2000 – Millennials or Generation Y
1965-1979 – Generation X
1946-1964 – Baby Boom
1925-1945 – Silent Generation

This generational breakdown got me to thinking about how leaders need to be both attuned to and flexible enough to adjust their leadership styles to the various generations that they must both lead and deal with. The generations above all come from different eras, and have had their approaches to business (and life for that matter) evolve from very different economic and life experiences.

The first is the silent generation. They are defined as the generation that ends with the ending of the last great global conflict, World War two. It should be interesting to note that for all intents and purposes, the silent generation has at this point by and large retired from the work force. Someone born in 1945, the last of the silent generation years would be sixty nine this year.

Next are the baby boomers. They are defined as following World War two and ending at approximately the time of the assassination of U.S. President John F. Kennedy. The baby boomers at this time are also aging out. The youngest and last of them will be fifty this year and are surely beginning to contemplate retirement as well. The older baby boomers have probably already retired. Either way they have a different set of goals and drivers than those members of the following and younger generations.

Next is Generation X and as the name might indicate they seem to be a relative unknown when it comes to defining traits and characteristics. They have seen man reach the moon (a product of a previous generational world and ambition), but are not usually associated with the major scientific or social upheavals of this time. They are usually referred to as the “MTV” generation. The major defining event that is usually associated with the end point for this generational group might be the Iran Hostage crisis. The majority of Generation X should be considered to be in their professional primes.

I apologize for the short generational genealogy discussion, but I wanted to set the table for the next generation, the Millennials, or Generation Y. They are the generation that is bracketed by the Iranian Hostage Crisis and the end of the twentieth century, which as we all know was mostly associated with the global phenomenon called “Y2K”. This is the generation that is now either entering or is already early on in their business careers. I recently read an article about them and as usual it got me to thinking. 

The article I read about the Millennials was in Bloomberg, and since we all know that they do not have any sort of agenda and would only print the unvarnished truth, it must be so, right?

In this article Bloomberg discussed several of the demographics and hence characteristics specifically associated with the Millennial generation. As a member of a previous generation, I won’t say which previous generation, but you can safely assume it is not the “Silent Generation”, it is hard not to compare your own experiences to those as attributed to the Millennials. I would assume this to be the case for just about everyone who is not a Millennial.

Perhaps these differences in experiences and demographics can somehow be traced to the defining events that ended the previous generational era and were the bellwether for the one to come. It seems that the magnitude of the events that are used to define a generation might provide us some insight in the shaping of the demographic of that generation.

The end of World war two the global conflict that cost millions of lives was the start of and probably the most shaping and influencing event of the Baby Boomer generation. They saw the creation of the atomic bomb, the creation of the space race, the rise of the “Cold War” and the Cuban Missile Crisis. The magnitude of these types of events is difficult to overstate.

With the assassination of President Kennedy we had the start of the Generation X. They experienced the accompanying loss of innocence associated with that event. It is also thought that this loss of innocence was the impetus for many of the other events they saw. They also saw the turmoil associated with the civil rights movements and changes, the escalation and ultimate end of the prolonged and increasingly unpopular Vietnam War, a man land on the moon, but as I said before, they are mostly associated with the rise of music videos and the phenomenon called MTV. Go figure.

That brings us to the Millennials. Their generation is bracketed by events including the Iranian Hostage Crisis where fifty two American diplomats were held hostage in post revolutionary Iran for a little more than a year at the start, and the “Y2K” furor where everything from global anarchy to the absolute end of the civilized world were predicted in association with the belief that the technology that we had all become so dependent on would not be able to accommodate the change from a “19xx” date delineation to a “20xx” date delineation at the end. Really.

Millennials have grown up during one of the most prolonged periods of sustained growth in economic history. They had a front seat (in front of the television) in witnessing one of the fastest, highest technology and most successful military campaigns in the history. And it was on television every night. In the first Gulf War they got to see the birth of both Stealth and Smart technologies. I too remember watching this event and how to me it resembled the new video games that were then a budding industry.

In short it would seem at least in my opinion that the Millennial generation was defined by both an economic and political “Boom” period. Maybe it may only appear to be so good in my own retrospect in comparison to today’s economic situation. Perhaps it is just my longing for the “good old days” that we have all always heard about. I do however think that we are all, to some general extent products of our times, and this period in general was a good time by just about any measure. Unfortunately all Booms eventually end.

Could this period be the beginning of the “entitlement” mentality that seems to be infusing itself into both our political and economic fabrics? If everything was so good in your formative years could you feel entitled to everything being good going forward? I don’t think this is just a Millennial generational issue. They just happen to be the generation entering or already in the work force that is the product of this period.

Regardless, the business leader of today is going to have to understand what has shaped the outlook of each of the members of their team. They need to understand the motivational factors as well as the expectations associated with both the generation in general, as well as the individual specifically.

No generation is homogeneous in its make-up. There will be Millennials that do not feel entitled to good times, just as there will probably be Baby Boomers that do feel entitled. The leaders of this generation, and the generations that follow, are going to need to be able to recognize the breadth of both the gen
erational and individual factors that motivate, drive and affect their teams, as well as have the flexibility to adapt their leadership styles to the generational diversity of their teams.

Office Art

There is a very good chance that I am perhaps overly aware of the business environments that I have been in. This could be because of all of the changes that I have seen in those environments over the years. I can remember when everybody wore a suit and tie to go to work and people could smoke in the office. It really wasn’t that long ago when you think about it. Now with virtual offices and telecommuting we are all casually attired whether we are in the office or not, and very few admit to smoking whether they actually do or not, and certainly not in the house or office as the case may be.

It could also be that I am so office environmentally aware because of the many things that have not changed over time. Just about every cube still looks like every other cube. The carpet and wall color schemes all continue to remain boringly and uninspiringly neutral. It is from this bland sea of constant cubic uniformity that we are trying to create and innovate new approaches and solutions to our customer’s needs.

There is however one bastion of stolid stability in the office environment that stands out above all others. It is so pervasive and consistent so as to be present in just about every office environment that I have ever worked in or visited. It is so constant so as to go almost unnoticed by the denizens of the business office environment. Almost. It seems to me that the one thing that never changes, regardless of restructuring, reorganizing or remodeling is our office art.

That is correct. The objects and images that adorn the walls of the standard office building seem to be a constant that never changes.

The items on the walls of an office would appear at first to fall into one of three general artistic categories: Technical, Inspirational, and Artistic art. Invariably there is a mixture of all three genres in any office environment, and depending on the group involved in that location there is usually an emphasis placed on one specific type.

Technical office art usually consists of multi-colored charts and posters that purport to provide some sort of definition or direction in accordance with the various processes associated with the business. There is usually a flow diagram of some sort associated with them, and they also usually contain at least three or four geometrically diverse shapes as a way of distinguishing the various different functions represented in the flow chart.

The more complex, the more colors, the more shapes and the more connective flow lines the better. Remember this is technical office art. It is supposed to be colorful, complex, obtuse and inaccessible. You will usually find this type of art in the building sections normally populated by engineers, and the research and development staff. The truth be told, most of them don’t understand the diagrams and flows either, but it does contribute to the general feeling that you are in a technical area populated by smart people.

Inspirational office art usually consists of sweeping vistas, soaring birds or athletes, either individually or in teams, either training for or competing in high stakes arenas such as the Olympics. In general we are all inspired by pictures of mountains, or eagles or groups of people rowing boats. When we see these things I assume we all want to go climb the mountain, soar like the eagle or row the boat to the point of exhaustion. Who wouldn’t?

However, that alone is not enough for the image to be considered inspirational office art. It must also be accompanied by some sort of an inspirational phrase or message. When I see these pictures with their inspirational catchphrases, I can’t help but think of the statue shown in the opening credits of the movie “Animal House”. As the camera pans down the length of the statue of the founder of Faber College, it rests on the inscription at the bottom. The inscription reads:

“Knowledge is good”

That movie inspired me to do many things, most of which I will not go into here.

Inspirational art is normally found in and around the Human Resources and Training departments of a company. I don’t know why these groups require that much incremental inspiration, but they do seem to need it.

The final category of office art is the category that can nominally be considered art. That is the artistic category. This category consists of anything that can be hung on the walls of an office that is neither technical nor inspirational in nature. The preponderance of artistic pictures that are hung an office wall normally consist of some sort of pastel oriented soothing landscape or similar type of image. It is definitely not art that is intended to evoke any sort of response, with the possible exception of a yawn.

There are however notable exceptions to this generalization. I was once in an office building where there was a framed US flag that hung on the wall. This in itself was not too interesting except for the fact that the flag had only forty eight stars, not the customary fifty that I had grown used to seeing on the average flag pole outside. I could not tell if it was in fact a decorative antique or artistic relic, or if it had just been put up on the wall prior to Alaska joining the union in 1959 and no one had thought to take it down since.

This point brings me to the downside of all this office art. It never changes. Buildings are erected. Businesses move in and they are finished out with whatever art du jour is popular or applicable at that time, and that art is never changed. The building, the offices, the cubes may be rearranged or reconfigured, but the artwork remains intact and in place. For years.

I am sure that some number of millennia in the future when the future archeologists are excavating our office buildings, much like we have done in the ancient pyramids, they will discover all these images on the office walls (much like the hieroglyphics on the pyramids) and wonder how people with such boring tastes could have built such buildings.

I believe that there was some sort of financial analysis conducted which proved out the hypothesis that it would in fact be cheaper to move, relocate or rotate the locations of the resident people in the building than it would be to periodically replace and upgrade the office art. This could in fact be the underlying reason that on average people in offices are asked to change their locations approximately once every year.

On the surface this movement of people not art, may sound like an ingenious solution the issue of people becoming jaded with respect to their professional surroundings, but no one thought about the long term issues associated with this scheme. With all this office relocation that has been going on for years on end, we now have HR and Training people trying to contemplate pastel landscapes and outdated flags, Engineers and developers being assaulted by simple pictures with inspirational phrases and the rest of us losing productivity as we try to understand the complexities associated with the engineering flowcharts and diagrams that once directed the development processes of our companies.

Pardon the pun, but this cannot be considered a pretty picture.

As an example, currently outside my office is a Software Improvement Process Diagram. It is on that heavy gage high density white presentation board. On the surface this isn’t so bad, other than the fact that the plan is dated 2004. It is only ten years old. Now it may be a fabulous process and there is even the finite possibility that it still may be applicable. The problem is that it is not applicable to me. I am here now, and I need my abstract pastel landscapes, or even a trite inspirational eagle or two if I am to get my work done.

On the inside of my office is a multi-dimensional, multi-figured, multi-colored flow chart and guide to problem solving. When you put the four three dimensional figures that represent the various stages of the problem solving process together, to me they
resemble a psychedelic lava lamp that has been laid on its side

The four phases of the problem solving process all quite conveniently start with the same letter “D”. They are “Define”, “Discover”, “Develop”, “Demonstrate”…..

Reading further into the detail….Wait a minute. This thing is actually starting to make some sense. I guess I should have looked at it in more detail sooner.

Nevermind.

Learning Opportunities

Normally when I get started on a new post I have an idea as to what the title should be. I sat here and knew what the topic was that I wanted to cover, but try as I might I could not come up with a title that satisfied me. I had a few but when they sound trite to even my own ear, they don’t make it to the post. Hopefully an idea for the title will present itself during the course of the post. Interesting, I normally don’t have a problem titling a post.

Over the course of my career I have learned that I am a positive reinforcement type of individual. I tend to focus on what I need to do to get better, as well as what the team needs to do to improve. That does not mean that I ignore my own or others mistakes. It does mean that I have found that going back and beating myself up, or beating up others for past mistakes does not normally provide a constructive solution. Since there is no way to go back and modify a behavior or decision that has already occurred, it seems to me that the best approach is to acknowledge the issue, understand what caused it, and take the appropriate steps to first solve it and then make sure that you have learned enough so that you don’t repeat the same issue in the future. Pretty simple, but it seems to have worked very well for me.

Too often it seems that issue resolution loses its way and becomes more of a historical re-visitation of the issue in order to make sure that blame is appropriately assigned. While culpability will be a topic of concern in the longer term, the immediate topic needs to remain on the issue resolution. Besides, I have also found that by the time the issue has manifested itself, those ultimately responsible for the issue are either abundantly aware of their own actions that were the genesis of the issue, or long gone from the scene.

No one likes to be wrong and no one likes to make mistakes. However once the mistake has been made there is the immediate need to rectify the situation. Corrective actions need to be scoped out and implemented. Once that is done and the solution is in process, then the learning opportunity can be examined on both an individual and business level. Again the focus needs to be on what has to be done on order to achieve the desired results or conversely what needs to be done to avoid the undesirable results.

It may be a subtle difference but it can and will set the entire tone for the team going forward in how it behaves and works. Looking at what needed to be done right in order to achieve the desired goals will automatically create a learning experience when people compare it with what was actually done. Looking at what was done has the potential to be perceived as more of a blaming experience than a learning experience.

Focusing on the positive aspect of what needs / needed to be done instead of focusing on the specific activity that generated the issue is one of the best ways to keep an issue that currently just needs resolution from devolving into what can be perceived as almost solely a blame assignment exercise. It is critical to understand this from a team leadership point of view, otherwise you can run the risk of having the team disengage from the resolution process.

By keeping a focus on what needed to be done you can retain the team’s capability to make aggressive decisions and take decisive actions. If everyone understands that issues will be resolved and reviewed from the point of view what needed to be done as opposed to the perception of holding any individual or team’s mistakes up for analysis, you will continue to encourage the team to make those types of decisions or to take those kinds of actions.

If your post issue actions become not much more than an analysis of the incorrect decision or action, you will begin to incite those individuals or teams to not “risk” making those decisions or to take those actions, as no one like to have the mistakes specifically and publically aired. By focusing on the negative you are encouraging the team to avoid the negative reinforcement.

You would hope that avoiding this negative reinforcement would result in more positive result generating decisions and actions. What I have found is that it normally results in fewer decisions or unilateral actions of any kind as people withdraw from risking the negative exposure.

Let me repeat that. Negative reinforcement or even the perception of negative reinforcement will result in fewer mistakes and issues because people will stop making decisions or taking actions. The only way to assure that you are never wrong is to not make the decision or take the action.

By looking at what needed to be done instead of what was done the business leader can communicate the same learning experience to the team or individual without the perception of it being an analysis of what that team or individual did wrong. Everyone makes mistakes. The objective is to keep everyone striving to do more, but with fewer mistakes. If people only recognize the downside of the mistake, the analysis of what they did wrong, they may choose to reduce the potentiality of repeating that uncomfortable event by becoming just that much more conservative in their approach to business.

In the times of that much more aggressive competition and the various drives to reduce costs and improve margins, it will not be the fully conservative approach that will carry the day. It will be new and innovative ideas, decisions and actions that move organizations and businesses forward.

Not everything new and innovative will work. However I think we are all in reasonable agreement that many of the current methods and directions associated with businesses (and government for that matter) today will not take us where we need or desire to go.

If we focus on the mistakes that get made instead of taking action to correct them and focusing on what the proper course of action is for future events we are encouraging people to not make mistakes. This on the surface is good. The only problem is as I have already said; the only way that I know of to assure that you don’t make a mistake is to not do anything. In taking the mistake focused approach, this is invariably what you get – fewer mistakes because there are much fewer decisions and actions taken.

I still don’t have a title for this post that I am fully happy with. That means that I will have to go with instinct on this one. If it’s wrong, I guess I’ll just have to look at it as another learning opportunity for me.

Turn On The Lights

Sunsets are nice. They have beautiful colors and signal the end of the day. They inspire poetry and song. All in all though, I think I prefer sunrises. They signal the onset of a new day. They also inspire poetry and songs although I don’t think quite as many poems and songs as sunsets. Apparently the preponderance of poets and musicians are not up early enough to see sunrises, but do manage to see the sunsets. Go figure. I like sunrises because it is nature’s way of turning on the lights.

When I was a younger person, a long, long time ago, I used to enjoy the night. The sunset would happen (very nice) and then life would begin. As I have gotten older I have now found that the nights are a particularly nice time for sleeping. Perhaps I am fortunate in that I usually have no need for any type of sleep aid other than turning out the lights. My children don’t seem to share this affinity for sleep and hence I don’t seem to be able to sleep as much at night as I would like.

I do get up earlier than them though. Most of the time I get up before sunrise and despite some of my more mischievous urges, I do not go and wake them up as early as I have awoken just to get even with them for keeping me up the night before…..usually.

It seems to me that there is now something of a direct relationship between my energy levels and the amount of light present in my environment. I don’t think I am entirely unique in this respect. I think everyone has had discussions with their friends regarding low energy levels and “blah” days when it is rainy or cloudy outside as opposed to bright sunny days. I know my kids do, but I normally attribute this to the fact that they have probably been up most of the night surfing the internet, playing video games or talking to their friends on the cell phones instead of sleeping like I was trying to do.

Even plants, I guess especially plants do better in the light since their vital link in the ecological chain is to convert light energy and carbon dioxide into chemical energy and oxygen. I find I am very partial to that oxygen thing. The key here is the use of light energy to enable the performance of a necessary task.

Now you may wonder what this relatively long harangue about light in its various forms has to do with business. I will now get to that. After travelling to multiple domestic and international locations over the last several years, I have arrived at significant question:

Is it just me or do our work environments seem to be getting darker?

To this point I am going to make what I think is a subtle but necessary distinction between “sufficient light” and “necessary light” in the office environment. Sufficient light is the amount of light required to conduct day to day functions in your office (or cube) without straining or otherwise causing damage to your eyesight. Necessary light is the amount of light required to generate a brightness or energy in the office environment that adds rather than detracts from your emotional state.

There is obviously sufficient light in our physical business environments for us to conduct our work. This is not a question. Perhaps I am getting older (obviously) or it may just be my imagination but I don’t remember offices being this dark last century.

I threw that “last century” remark in to give a little more feeling to the idea of in times past.

I understand the ideas associated with energy conservation and the high cost of utilities, but could we actually be dimming our office environments in an effort to save money? I have been in many different buildings over time. I seem to remember a time when most office ceiling light fixtures contained the larger (slightly over two inches in diameter) fluorescent tubes. We used to complain about how the bright fluorescent light made us all look so pale.

Now when I look up I see fewer of the larger brighter bulbs, or I see them replaced with the new one inch diameter bulbs, or I see even fewer of the one inch diameter bulbs. I looked it up. The new bulbs use about twenty percent less energy, but they produce about ten percent less light. From an efficiency point of view getting a twenty percent cost reduction while suffering only a ten percent performance reduction is a good trade to make, initially.

It seems that businesses are using fewer light bulbs, and the bulbs that they are using are producing less light.

Now this is a little thing, but in a business environment where we want to capture every iota of efficiency have we possibly missed something here? I understand the hard dollar savings associated with lower energy consumption for lighting the work place. What I am concerned about is the potential soft dollar loss associated with reduction in the efficiency of our teams by making the work environment just that little bit less friendly, appealing, and yes, energetic.

I am not saying that adding lights or generating / providing more lumens in the office will immediately improve productivity. I am saying that it is probably one of the steps that will need to be taken in addition to many others if we are serious about reenergizing (there is that “energy” word again) our work places.

When people started working from virtual offices instead of the standard brick and mortar office we seemed to have lost some of the human interaction and energy that made our organizations vibrant. When we started to implement the energy cost saving measures that seem to have further added to the darkening of our offices (possibly because it is believed that there are not as many people there now so not as much light is needed) we seem to have further reduced the overall energy level of our offices.

I think it is time to turn on or turn up the lights and brighten our work places. I have said in the past that I also believe we need to find ways to get people out of their virtual offices and back into the business environment where they interact face to face. We need to put energy back into our office environments, the light energy that even plants need, but especially the people energy that the business needs. If you are going to try to put the people back in the office, you will need to turn up the lights for them.

Not to go too far overboard here, but I do seem to recall a pretty important quote on this topic. I think it went:

“Let there be light.”

Don’t Drive Angry

For those of you that don’t know, I live in Texas. Texas is an interesting state and there are many things that I like about it. And there are a few that I am not so fond of, such as the apparent absence of any mountains or anything else that might pass for “terrain” within a five to six hour driving radius from where I live. It’s pretty flat here. Driving in Texas is invariably a very high speed endeavor and learning experience. Hence there are many signs along the sides of the various highways which simply state “Drive Friendly”.

It may be a reach but I got to thinking of the parallels that exist between Texas highways and today’s business climate. I think it is obvious that there are far more ups and downs in today’s business than there are on Texas’ highways, at least in the part of Texas that I live in. Now there is supposed to be some mythical portion of Texas that is referred to as the “hill country” where there are supposed to be some hills and there may be some people who claim to live there that might dispute this assertion.

I have flown and driven over a great deal of the state. While not “planer” flat in the mathematical sense, it is by and large pretty flat.

But I digress….

I think that some of the speed limits on Texas highways are some of the highest speed limits in the country, and even these are considered to be not much more than guidelines and suggestions as opposed to limits and laws by the Texas locals driving here. People move quickly here on the roads. This requires a great deal of attention and high speed interaction if you are to get anywhere safely.

Are you now starting to see the parallel between driving in Texas and working into today’s business environment?

What Texas has learned is that high speed interaction between people requires a certain amount of courtesy and respect between the related participants. There needs to be a certain adherence to the protocols associated with the various interactions (such as driving on the proper side of the road, remaining in your appropriate lane, dimming lights for oncoming traffic, and if you are going to swear at or call the other participants on the road derogatory names it is probably good form to keep your windows up so that they cannot hear you (this would be the automotive equivalent to the “mute” button on a conference call). Hand gestures of just about any kind, other than a polite, short, open handed wave are discouraged.

In short, this type of mutual respect and interaction on the Texas highways can be considered driving friendly.

What the Texas highway department has realized is that people who are not friendly on the Texas highways seem to have more issues and unpleasant interactions on the Texas highways than those that are friendly. They have learned that people who are not operating in a friendly manner in a high speed environment have problems interacting with other people in a high speed environment. Being tired, angry or any other non-friendly physical or emotional state could affect how they are perceived and have a detrimental effect on their performance and interactions.

Overly aggressive behavior, just as overly timid behavior had a tendency to cause issues on the roads and disrupt the smooth flow of traffic. The same was seen with a lack of respect for the needs and rights of the other drivers on the road. It was also noted that the boorish behavior of one could engender a similar behavior in others, again resulting in a limitation of the progress for all. Even those that are maintaining their proper decorum on the roads needed to be ever aware for those that were not in order to make sure that they were not inadvertently caught up in issues not of their own making.

Hence the multitude of signs dotting the (mostly flat) Texas highways reminding all participants to “Drive Friendly”.

Unfortunately, most business environments do not come with signs reminding the various participants to drive friendly.

By its very nature today’s high speed business environment requires us to openly and directly confront the various issues that we face on a daily basis. Many of these issues can be the result of actions, activities and behaviors of others on the same road. In short there are many times where we are asked, or in some instances forced to deal with issues that are not of our own doing. There are other times where we will be dealing with issues that are our own. This is business.

When there is an issue to be solved it doesn’t matter at that point in time who is responsible for creating that issue. Despite everyone’s urge and desire to first thing figure out who is to blame for it. What matters is who is going to be responsible for solving it. If someone is driving on the wrong side of the street or running red lights, it can create issues. If there is a traffic issue you worry about taking care of the issue and those affected by it first, then you look at who is at fault. Getting people back in the right lanes and making sure that they stop at future red lights should be the preventative solution goal as it is always more effective to avoid future issues than to have to expend the time and resources required to deal with them.

By the way, that red light thing in Texas can be tricky. I think the standard street light progression as perceived by Texans is: Green – Yellow – Dark Yellow – Really Dark Yellow – Almost Green Again – Should Have Been Green Again By the Time I got There – Green. It seems that the standard response to any of these perceived light colors or light color changes is to increase speed to enable that person get through the intersection as quickly as possible and thereby minimize the time available for any intersection issues. This approach does not always seem to work.

Business is about how effectively we can interact with others in the pursuit of our objectives and goals. Our human nature makes it difficult to separate how we are feeling at that time from how we are dealing with others. Anger and other emotions have a tendency to adversely affect our performance and decisions making abilities in the office, just as they do when we get behind the wheel of a car.

Business decisions and judgment, like the decisions and judgments while driving on the highway are best performed when we “Drive Friendly”. Perhaps we might do better if we added a few more “Drive Friendly” signs to the office environment, instead of just having them on the sides of the flat Texas highways.

Thinking It Through

Every now and then I have a good idea. Depending on whom you ask you can get the entire gamut of responses as to how often this type of event actually occurs. My mother seems to think just about every one of my ideas is a good one and that they are the result of the fifty percent of my DNA that came from her. It seems to me that she didn’t always think that. I think it started when I got the idea of graduating college and moving out. My wife on the other hand seems to think that I might have a significantly lower hit rate for good ideas as opposed to the total number of ideas that I have. A much, much, significantly lower hit rate. I think the number of good ideas that I have probably lies somewhere between these two boundaries, but it is hard to tell which is which until I spend some time thinking them through.

A good example of this process can be seen in how I write these articles. I keep a pad and pen around where I capture all the ideas that I have for topics for future articles. When I have an idea, I write it down on the list. The list grows and the articles get written. Seeing the list helps me visualize and formulate what ideas I want to convey and what I want to say. When I don’t capture my idea on the list I have a tendency to forget what my idea was and then I go through the day kicking myself because I have forgotten what was obviously going to be a great topic.

I didn’t get this process from school or writing class or anything like that. I got it from work. I always keep both a notebook and a whiteboard (both topics of previous articles) in my office where I would (and still do) capture the things that I felt needed to be done. I know that writing something down instead of typing it in is old school, but so what.

As of that point in time that the topics got written down on the article list or objectives were written on the white board, all of them were good ideas. Ideas such as “insult the boss” or “complain of wife’s attire” are not good ideas and didn’t make the list. I was obviously proud of this fact.

I then started working through the ideas selecting the topics to write about or prioritizing the various things I felt needed to be done in the business. I would start writing articles or further outlining activities on the white board or charts. I would very rapidly start to see which of my topics and activities would be fruitful and relatively easy to generate positive results. I would also see that some other ideas and activities would also be good, but would require deeper thought and more effort to bring to closure. It was some of these activities and articles that I have been the most proud of.

I would also begin to see that in some of those topics and ideas, regardless of how hard I worked them at this point in time were not going to yield something that would work out well enough that I would want to sign my name to. These items and objectives were not then discarded. They were put back into the holding file for further consideration and thought. Some have stayed there a very long time and probably will never see the light of day. Some have stayed there a relatively short period of time before the translation occurred between what I had and what I wanted. Some were left on the white board to remind me what I needed to think about and what I felt needed to get done.

What brought this mental process to mind was my last article, the one that I didn’t write and didn’t post. I had a great topic. I thought it would be one of those easy to write and be oh so proud of it ones. I got started. I soon realized the path that I was on for that topic was taking me down the wrong road. Try as I might I couldn’t see a way to get onto the right path and convey the wisdom that I was absolutely sure that I had inside of me. I had to put it back in the holding file. It wasn’t ready.

I suspect that if my wife ever reads any of my articles that she is smiling right now and commenting to herself that I should probably do that with far more of my ideas.

The point I am making here is that at the start all ideas start out as good ideas. It is not until after we work on them and work through them that we can ascertain the feasibility and applicability to the goals that we have. Some make the grade. Some do not. I have actually found that the majority of both my article topics and identified business activities end up at least in part resulting in a product that gets put forth into the world in one form or another.

There will always be those that will want to poke holes in your ideas, or articles for that matter. I have gotten some interesting comments regarding some of the topics and articles I have written. I am pretty sure that some of their suggestions and conditions that they have ascribed to me regard capabilities that are probably either genetically or biologically impossible.

But it doesn’t stop me. It really doesn’t even slow me down.

There will always be those in business that will at first adhere to the “Not Invented Here” school of ideas (commonly called NIH Syndrome). It is at this point in time that your metal will be tested. How feasible is your idea or proposal? Have you thought it through?

Many of us have a tendency to propose an incomplete or not fully thought through and formed idea. It might be a good idea that is worthy of going on the list for development. However proposing it prior to thinking it through would be like publishing an article before it is fully written.

What is the first thing most people do when they hear a new idea?

They try to shoot holes in it. They look for the weaknesses and the reasons that it will not work.

It is the common perception that if one chink in the armor can be found, if one flawed aspect of an otherwise glorious and eminently functional idea can be identified, then by association the entire idea can be dismissed as unworkable.

It may be human nature where the inherent resistance to change may be built into our collective DNA. I don’t know. Sometimes it seems that we would rather continue down the known road, which we know will not get us to where we need to be, instead of changing direction and setting out on a road whose final destination is not fully known but at least is going in the direction we want. When I catch myself resisting someone else’s new ideas I consciously try to take a step back and try to be more receptive. Even so, it takes an effort.

Thinking through the new idea will help you uncover any potential issues and weaknesses. It will help you prepare for the NIH syndrome that you will inevitably encounter. It will prepare you with responses to potential objections. It will also save you some embarrassment if your idea turns out to be one of those that actually should have stayed on your list or white board for a little while longer.

Most everybody at one time or another has good ideas. Some get captured and some get forgotten. It is the interval and the effort that goes into the idea after it gets captured and before it gets proposed that is the key. It can be the difference between being just another “off the cuff” suggestion and a studied and considered proposal for improvement. A good idea matters. Thinking it through matters even more.

Thick Skin

A new year always brings many opportunities with it. The opportunity for both business and personal growth. The opportunity to break eighty on the golf course. The opportunity to break seventy on the golf course. The opportunity for our elected officials to step up, tell the public the truth and most importantly, solve some problems.

Some of these opportunities are more likely to occur than others, and are listed in no particular order of increasing improbability of happening.

The beginning of a new year also means that it is time to review the last year’s performance. That usually translates to year end performance reviews. I have discussed the need for, and various approaches to giving performance reviews in the past. Most of these approaches usually reduce down to: Be professional, be factual, be balanced (what was good and what could be improved) and most importantly, be brief.

Chances are that the person you are conducting the review with is probably enjoying the review at least as much as you are.

This time though, I’m going to take a little bit of a different approach to the joys of year end reviews and approach them from the point of view of the person being reviewed. We all essentially report to someone, and that someone is responsible for conducting our year end review.

I have tried several times to conduct year end reviews with my wife, but for some reason it seems that these meetings end up becoming her yearend reviews of me. Go figure.

I have had many different types of managers in my career. There have been those that clearly were uncomfortable with the review responsibility and only provided the most cursory of reviews. There were those managers that took their review responsibility way too seriously and scheduled two to three hour reviews in an effort to make sure that I obtained the maximum benefit of the considered and judicious input they had regarding not only my performance, but just about any other topic in life that came to mind while they were talking to me. And there have been those that did the bare minimum just so they could say they performed the review if they were asked.

There was a manager that once handed me his manager’s year end review form that he was supposed to fill out on me, and asked me to fill it out for him so that he could then turn around and conduct my year end review with it. This was interesting the first year it happened, and I tried to be pretty honest with him and myself regarding my performance. The face to face meeting was obviously pretty brief. The second year it happened, there wasn’t even a face to face meeting. The third year that it occurred seemed to me to be a call to action.

As in the previous years I filled out the form, but this time I added a “new” objective to the list. This new objective was that I be able to “walk on water”. In order to exceed this objective I would need to be able to walk on the air above the water. In order to achieve this objective I would need to actually walk on water (not during the winter on ice – frozen water, as this would meet the goal, but wouldn’t be note worthy). Anything else would be a “needs improvement” rating.

In this instance I rated myself as an “achieved – with an asterisk” in that I noted that I was not able to figure out how to walk on the water, but I was able to part the water and walk across the bottom without getting wet, which was almost as good. The only difference was that my shoes got a little muddy.

He never said a thing to me about it. I don’t think he even read it. I still smile every time I think back to that form and realize that it is a duly signed review archived somewhere in the human resource records of a major corporation.

Occasionally however, I have had the good fortune to work for a leader that took his responsibility seriously, and put the time in to conduct a considered and accurate review of me. They usually took the approach that we all want to do well, but that invariably there were areas where we all could do better.

I have discussed in the past the necessity that we all conduct “difficult conversations” with our team member when the time or situation calls for it. Now it is time to understand how to handle having an uncomfortable or difficult conversation conducted with you.

Being told what you didn’t get done, or what you need to do better is going to happen. You need to understand and accept this. It might not have been your fault or responsibility. It might have been unavoidable. It is conceivable that you might have actually not performed up to your usual high levels. There may in fact be no one on the planet that could have performed better than you under these circumstances. It doesn’t matter. Regardless, it is the start of a new year and you are going to be reviewed on last year’s performance.

The first thing to understand and acknowledge when being reviewed is your area of responsibility. The issues and the decisions that spawned them may have taken place elsewhere or in the past, but you are there now and for better or for worse you own the situation now. You are now the responsible party.

Don’t dodge it. Don’t blame it on past administrations. We have enough politicians doing this. Stand up and note what your area of responsibility is. Chances are that it is already recognized where the issues arose. There will be those issues that are not attributable to you and those that are.

Also remember that this is a review, not a “blame-storming” session. It is always difficult to not be defensive in a situation where those things that have not gone as well as anyone would like are being reviewed. As strange as it may seem, I have found that the less defensive that I am about difficult issues, the less accusatory sounding people are when they discuss the various points to be covered. I have also found that sometimes there is truly valid input available on what and how I can do better.

Always remember in a review that facts are your friends. Discuss the facts and how they may be interpreted. Do not try to modify or discuss opinion, yours or anyone else’s. Trying to modify or discuss opinion is called an argument. Having an argument as the result of a yearend review is definitely the definition of a lose – lose situation. Without the facts to support a different performance perception, a yearend review argument will generate a negative outcome on this year’s review, and a poor expectation will be set for next year’s performance and review as well.

No one likes to be the recipient of a difficult discussion or review. The natural reaction is to try and justify or argue the position. This approach invariably fails unless there are facts available to both parties that can modify opinions. And even then there is only so much that you can say or do. It is a very fine line.

When I have conducted difficult conversations or reviews I have been careful to address the behavior or performance and not the person. It is business and we are professionals. No matter what it feels like, it should not feel like a personal attack. I did not enjoy the conversation, but it was my responsibility to conduct it.

The same rules seem to apply when you find yourself on the other side of a difficult conversation or review. Do not allow it to become personal. It is business and you are a professional. It is difficult to do, but it is a must. Be professional, be factual, and be balanced as to what you can do to improve the situation. If it was felt that the issue needed to be addressed with you in the first place, there needs to be some sort of response provided that the message being sent was acknowledged and received. I said acknowledged. I didn’t say agreed.

Sometimes it takes thick skin to accept the responsibilities that go along with being a leader. There are very few who can say that they have not erred or that their performance could not be improved. Sometimes i
t is not fun to be told this by someone else, but it does go with the position.

More Joys of Travel

Even though every business on the planet continues to try and reduce costs, and those cost reduction efforts almost always include trying to reduce the amount spent on travel, we all seem to continue to have to travel. Personally I no longer see anything remotely alluring about travel. I have grown to regard all planes as not much more than glorified buses with wings. And when the lights are out and you are asleep it is amazing how one hotel room seems to resemble another. If it wasn’t for the opportunity to sample the local cuisines and the local beers, as I have said before, I don’t think there would be any way people could get me to travel anymore.
Oh yeah, there is that opportunity to meet with the customers thing. That is always a good reason to go.
It seems every time I turn on the television there is some commercial by some airline or another touting the fact that they are upgrading their fleet to the latest and greatest equipment available. I meet this with a decidedly mixed response. I like the fact that the old planes are being replaced by new ones and that there is now presumably a reduced opportunity for a mid flight malfunction that would cause the plane to suddenly become un-airworthy. I am much in favor of reducing the possibilities of this occurrence. 
On the other hand I know that the new planes will still have the same issue for me associated with the recycling of the cabin air in the plane that always uncomfortably dries out my skin, my eyes and my sinuses. This recycled cabin air makes it almost impossible for me to answer the customs agent’s questions regarding why I am visiting whatever place I am visiting. Blinking violently with blood shot eyes and choking in the middle of saying you are visiting for business, is not the most recommended way to try and enter a foreign country. It has a tendency to invite further questions and scrutiny, which always enjoyable.
One of the ways to deal with the dryness of the air in the cabin is to drink fluids. Water is always preferred, but if pressed as I have said before, I will replace the water with beer. No, wait a minute. I meant beer. Beer is always the preferred as the source of fluid replenishment while flying. If you are going to replenish fluids beer can help do that as well as provide other life sustaining nutrients. The only problem with replenishing much needed fluids while on an extended flight is that this occasionally results in the need to go to the bathroom.
For those of you who have not been on any of the new fleets of airplanes recently put in service, as advertised by the airlines, the new planes are designed to accommodate people with an efficiency that would make a modern automated sardine canning factory jealous. I believe that one of the ways they have accomplished this density of packing is by reducing the number of bathrooms on the plane. On most international flights these days you now have more than three hundred people sitting together for upwards of nine to ten hours and they all get to share the same two bathrooms. And these are not just ordinary bathrooms. These are single occupancy bathrooms that occupy no more than two square feet of precious and expensive space on these new airplanes that could otherwise be occupied by fare paying passengers. They are very cozy, if you know what I mean.
Despite this fact it seems that everyone who uses one of these bathrooms seems to believe that they are the only person that has to deal with a call of nature. They usually leave it in a condition that rivals that of a freshman’s dorm room immediately after a victorious homecoming football game celebration. Believe it or not I have actually seen someone bring their razors and hair driers into these bathrooms, apparently so they can look their best when they exit the plane after an overnight flight. In situations like this, one must plan for their bathroom needs well in advance or face the potential for a stressful wait.
The only thing more uncomfortable than standing in front of two hundred people waiting to use the micro-bathroom is sitting in a minimally padded chair for more than nine or ten hours. In another one of the airline’s efforts to be ever more cost efficient most airlines have adapted their jets to handle the largest number of passengers possible. They have done this by removing all the useless, unprofitable space possible.
Most of us commonly refer to this useless, unprofitable space as leg room.
They have also ingeniously compensated for this removal of leg room by modifying the seats so that they will no longer recline more than one and a half inches. By doing this they can continue to claim that you have the comfort of a reclining seat without actually having to provide you a seat that truly reclines. In the coach seats that are all that most businesses will pay for during business travel, you now get the opportunity to sit essentially erect with your knees firmly pressed against the seat in front of you for the entire flight. You are also afforded the opportunity to be continually reminded of this situation in that most usually the person in the seat behind you has their knees firmly against the back of your seat as well.
There are many seating options on a long flight. You have the choice of having people crawl over you on their way to waiting in line in front of everyone to use the bathroom, or conversely being the one that crawls over everyone on your way to standing line in front of everyone to go to the bathroom. For the unfamiliar, this means that you can either sit on the aisle or you can sit somewhere else. On the aisle everyone sitting inside of you gets to crawl over you when they want or need to get up. If you are not on the aisle, then you are one of the ones doing the crawling. I have come to the conclusion that I prefer to be crawled over instead of having to do the crawling.
There are those that prefer the window seat. I have done some empirical testing of my own by sitting in the window seat, and I guess I just don’t get it. The window seat provides a wonderful view of the airport when you are taking off or landing, unless you are doing one of those things at night, otherwise it affords you a wonderful view of the sky, the clouds, or most usually on an international flight, the night. Personally a great view of the various airports and the dark night sky does not hold great allure to me while travelling.
While flying does present several entertaining opportunities for comfort and enjoyment, it is at least flying. I recently had the opportunity to visit a major city that did not in fact have an airport with major airline service. I didn’t think those types of major metropolises existed anymore, but apparently they do. This necessitated travel via a means other than and in addition to air travel. I had to fly ten hours plus, and then take a train. Perhaps in the future I’ll relate the joys of train travel, but for now I’ll be content in having related more of the joys associated with international coach class air travel.

Over Qualified

We have all to some extent undergone upheaval in our markets, businesses and careers. I have also continued to hear the phrase “over qualified” when it comes to new roles or new career paths. I have commented many times in the past about the fact that the way I look at the world can be considered to be out of step with the accepted norms, or conversely just “different”. Perhaps it is now proper for business managers to understand that throughout change in order to successfully lead you probably need to be out of step with the accepted management norms and be different.

My first question is: How can anyone be considered overqualified? As a leader don’t you want everyone on the team to be as wildly successful at their responsibilities as is humanly possible? Doesn’t the very act of them being successful by its definition make you successful? Don’t the most qualified individuals have the greatest probability of being successful?

Who will knowingly take on a team member with less training, or less education, or less experience, or any other material qualification than another potential team member? You have to pardon me here, but I can never remember thinking that I was looking for someone with lower qualifications. I was, and continue to always look for the best possible team members.

So if this is the case for the majority of business leaders, why is there so much being written about people being over qualified for various opportunities? I understand that the markets have changed and there are many people with significant capabilities whose previous positions for one reason or another no longer exist. However, their knowledge and capabilities are still there and can be an incredible resource to any team.

I think it comes down to the difference between management and leadership. Leaders want the best on their teams. Strong and qualified team members drive the leader to be just that, a leader. Leaders need to have the confidence to embrace the challenge of leading a talented and possibly “over” qualified team. It seems that over qualified people may need unqualified leadership.

It also seems that managers may also only want the best on their teams but with the only stipulation being that the team member not be a challenge, to them. Leaders understand that they may not have the market cornered on hard work or good ideas. They look for team members that can challenge them and each other while working toward the business’ goals and objectives. Managers may have a tendency to view this sort of behavior as a challenge to their personal authority instead of an opportunity for everyone to do better.

This type of behavior is not a challenge to authority, but it is a challenge to manage and lead.

Highly qualified individuals in my experience are probably more prone to display this sort of challenging behavior. If they think they have a good idea, or see an issue with the current plan they are apt to voice it. I think this is a very good trait. Leaders should not be the only ones pushing things forward; or rather I guess I should say that leaders are the primary ones pushing things forward, I just prefer that there be multiple people pushing on the team.

Better qualifications usually come with time. More time in school usually equates to a better educational qualifications. More time in training equates to a more work ready resource. More experience means that someone already has a track record of performance in similar or equivalent roles. When a leader is looking for someone for their team, these are exactly the types of qualifications they should be looking for.

A manager on the other hand may be concerned that someone could potentially have qualifications, or worse the capabilities to actually perform that manager’s job. That insecurity seems to me to be at the root of the “over qualified” argument. After all, who would want to bring someone onto the team that might be a better or more capable performer than the manager of the team?

A leader would.

This approach does not mean that you should look for only the most educated, trained and experienced. Having those qualifications does not necessarily make them the best. There is also a little thing called “talent” that must be factored in, and it knows no age limitation. The talented can be young or old, it doesn’t matter. Talent is more qualitative in nature and I cannot think of any hard and fast rules for identifying it. But I think we all know it when we see it.

I have mentioned in the past that I am a would-be musician. I enjoy music. I understand its theory. I practice. When you are doing something that you enjoy, practice is not work. But I also understand that I do not have the innate talent for music that others may have. It just means that I have to work at it harder than some for whom it comes naturally. It is a challenge to me and for me to keep up with them. And boy is that fun. To take the analogy one step further, even in music I try to search out and play with those musicians that are more talented than I am, because in turn it makes me a better musician for having played with them. There is no being “over qualified” here either.

None of us should expect to inhabit the roles we are in forever. Each assignment is indeed a step in our careers. Just as the roles associated with the members of the team are presumably steps in their careers. A certain amount of change is good for both the team and the individual. It keeps the organization vibrant. Obviously too much of a good thing can be detrimental. I think we have all been in organizations where the turnover rate exceeded a healthy level started to cause issues.

The point here is that having the best qualified people in the organization provides a capability to deal with both leadership and team changes. Team members need to be capable of and prepared to step in and step up to new roles as they occur. Having well qualified team members provides added strength to the team and the organization as a whole.

As I pointed out, leaders should not only consider the most trained, most educated and most experienced people for their positions. On the contrary, a leader always looks for the best qualified and most talented candidate for each specific position. Being educated, trained and experienced may be an indication of talent but it should not be the only criteria. Having education, training, experience and talent in one discipline, say accounting, does not make that person the best qualified candidate for a role in marketing. However if the role in question was in accounting, I would be hard pressed to agree with any statement to the effect that the person described above was “over qualified”.

Bad Deals

I started off my business career in sales. I admit it. It’s not something I am particularly proud of…come to think of it, it is something that I am particularly proud of. I can honestly say that I spent time in one of the most difficult professional disciplines around, the professional discipline of trying to get someone to give you their money. I learned a lot in sales about dealing with customers. I also learned a lot about dealing with the internal mechanisms of the company that I worked for as well. I thought that any customer that I could make a deal with and get an order from was a good customer. As I have progressed through my career I have learned that not all deals and customers are good.

For the average salesperson an order is an order. The more of them you get, the more commissions you get. The more commissions you get the more money and personal esteem you acquire. Along with this comes better houses, cars, big screen TVs and along with the laws of natural selection an increased opportunity to pass your sales DNA along to future generations of sales people. In case you missed it, sales is a jungle.

The ideal sales deal is that you provide your customer with something they need, a product or a service, and they provide you with something you need, primarily money. As long as everyone keeps this sort of exchange arrangement in mind things normally go well, and for the most part they usually do.

Occasionally however there have been recorded instances where things didn’t go well. Many of these sorts of instances are attributable to honest mistakes or misunderstandings and the preponderance of them can be cleared up by honest and diligent work by both parties associated with the deal.

Then there are the outliers. Those deals that you have entered into that despite the fact that you’re doing everything right, either one or both of the parties to the deal are unhappy. Either the customer is not getting what they wanted, or you are not getting paid. Sometimes both. What do you do?

The first step is to find the nearest Home Depot store. Go there and go into their Bathroom / Plumbing section and find a really nice mirror. Buy that mirror, take it to your office, hang it on your wall and spend some time looking at and questioning the person in that mirror to make absolutely sure that you are in fact living up to your end of the deal. Try to look at the person in that mirror from the customer’s point of view. Have you told the customer everything the need to know? Have you done everything you need to do? Start with you.

If you have completed step one and are reasonably confident that you and your team are providing all the entitled goods and services to both the letter and the spirit of the contract then the issue may in fact lie on the other side of the deal, with the customer. This is usually a pretty rare, but not an unheard of event. You may have a customer that through either the normal or abnormal conduct of their business is difficult to deal with.

I have not had to deal with this sort of situation very often thank goodness, but when I have it has normally fallen into one of two categories: it is either a very small customer that for whatever reason has been forced into a position where they cannot adhere to the deal they made, or a very large customer who feels that they are either such a desirable customer or so dominant in their market that they do not feel that they have to adhere to the deal they have made.

Of the two scenarios, I prefer the first one. A company that can’t honor the deal for the most part will be willing to work with you. There may be a solution out there where the deliverables of the deal can be altered to where both parties can be addressed. A small customer company by its nature can be a fragile enterprise. There are risks associated with dealing with them. They will however usually try to work with you.

On the other side of the spectrum is the large company. These are companies that understand the role and position in the market and use it as leverage against all of their suppliers. If you want their business then they feel that you will have to play their game. Most customers want their partners to make a reasonable profit. This usually assures them of a continued available supply of the good or service that they want or need. Some however just want the deal now and will not care if you are around for the next one or not. They know there will be someone else there if you are not.

The usual response to this tactic is for the organization to agree to the terms because the organization decides that it wants the business bad enough, and the size of the business is large enough to warrant an agreement. There will usually be pressure from the sales team trying to convince everyone of the strategic nature of both the business and the customer in question, and how the profit will be made up on the next deal.

It never happens that way, and there is nothing strategic about unprofitable business. I have addressed this topic specifically in the past. You can talk yourself into just about any kind of business, but you cannot talk yourself into profitability.

Once you are into one of these types of deals where the customer is obviously leveraging you there are only a limited number of things you can do: You can look for a legal way out, or look for a way to minimize the damage and exposure while you meet your end of the agreement. After all, you signed it.

Exiting a deal because you don’t like the terms of a contract you signed is usually only an option of last resort. Unless you have been demonstrably misled by the customer, this really isn’t an option. But it is also a financial decision as well. If the fines and penalties for leaving the contract are less that than the losses expected from continuing, it needs to be reviewed.

That usually leaves buckling down, trying to reduce all costs associated with the deal in question, and then getting out at the earliest legal time. Issue the exit / cancelation notification and don’t take any argument from the sales team or customer. These are the teams that were responsible for the deal in the first place. Don’t allow them to prolong the inevitable.

Be polite. Be firm. Be gone.

Sometimes bad contracts are expensive opportunities to learn lessons. Other times they can just be plain expensive. They can be lessons about markets. They can be lessons about sales teams and their compensation incentives. They can be lessons about specific customers. The important point is that they need to be lessons that are learned.

If you have only a contract or two that fall into this category then they could be an anomaly. If you have multiple bad deals in a specific market or with a specific customer, you need to learn how to de-risk those types of deals, or avoid those specific markets or customers.

If you have multiple bad deals across multiple markets and customers, then you have a sales force issue, where their objectives and incentives are not aligned with the profitability objectives and requirements of the company. This is a key point. If you have a number of bad deals you have an issue with your sales team and their compensation plan. You probably need to make sure that the sales team has some sort of margin or profitability goal associated with their compensation in order to avoid this situation.

Regardless, the only person responsible for a bad deal is the one that agreed to it. Don’t sign a bad deal hoping you can make it better. Don’t specifically blame the customer, but if they are unwilling to create an agreement that is at least fair to both parties you need to remember and learn from it. Learn from it and put the processes in place to make sure it doesn’t happen again.

Bad deals happen only because you agree to them.