So What Did The Birth of Christ Mean to You?

Christmas, as a holiday, is now in the history books. The economics are a statistic (good, bad, or indifferent). Time to move on. To what? I don't want to sound like one of those angry fundamentalists who are screaming "Put Christ in Christmas!" until December 25 and then move on to another seasonal cause. But I do want to suggest that while the holiday is past, on this day after Christmas it might do well to stop and consider what happened the day after the original Christmas. The Son of God was a day old. He had been born and now had lived his first day. The point is that he was real and, some 33 years later, he would live his last day and die in order to provide redemption to humanity. Does that mean anything to you?

Christmas Giving

This year, rather than give the traditional Christmas "junk" to clients (mugs, dinners, popcorn, whatever) it seemed more fitting to the season and to the times to give something to charity in their name. So, this year, Jholdas contributed to International Micro Enterprise Development (www.imed-online.org). IMED works among the poorest of the poor around the world in some very hard to get to places. Their volunteer network teaches and funds micro-businesses for the unemployed where the unemployment rates are 20-50% (and sometimes even higher)! We encourage all of you to consider a year end gift to a charity or ministry. It's a better use of money and it makes a real difference long after the cheeseballs are molded and thrown away. Merry Christmas!

Bailout-Mania

What is a bailout? It's either something you do for a sinking ship or something you do for someone in jail? Either way, it's NOT something you do for companies that have repeatedly failed to live up to the requirements of fundamental business, failed to look after the benefit of their shareholders, caved in to political/union pressure for decades, catered to greed and avarice that would make Gordon Gecko proud. Now our politicos (I can't call them leaders) are running scared and throwing our money (or money they are printing and using to devalue ours) at a problem that should be left to the "mercy" of the market! If Wall Street can figure out a path forward (which I believe they can) and if Detroit can figure out how to make cars America wants (and I'm not sure about this one), then they should. If they cannot, then let them file Chapter 11 and reorganize like many before them.

The Big Things First

Why, when we are seeking to cut costs in tough times, do we waste energy drilling down into little (or relatively little) things--the proverbial coffee supply or a couple of temporaries in the warehouse? We aren't going to get any significant results by concentrating "dollar time" on "nickel results." What are the big things? The obvious things? The sacred cows? If you're going to cut, get benefit from the effort.

Putting it All in Perspective

We were blessed (again) this Thanksgiving week with the healthy birth of my second grandson (wisely & brilliantly named for me!) and I find myself re-calibrating my priorities. Suddenly, the economy, political bickering and hypocrisy, weather--whatever--seems to take a back seat to watching and enjoying this incredible little guy. Frankly, I think this is one of the major reasons that most of us stay stressed so much--perspective. I'm not suggesting that the things of Wall Street or Pennsylvania Avenue are not important. I am saying that, compared to family and the lives of those we love, they just don't measure up at all.

The Attitude of Gratitude

Right now, if you're like me, your mind is overflowing with "stuff" to think about and most of it is negative (news, economics, layoffs, slow clients, AR, bills, etc.) Yet right in front of our noses is an incredible opportunity for personal mental health, spiritual joy, and physical energy--it's called Thanksgiving. I don't mean the actual "stuffing of the family" orgy that we all enjoy. I mean a reminder to stop thinking about all that's wrong and give thanks to God for all that's right.

Your mind can't manage two attitudes at the same time. And the best way to stop a negative pattern is to replace it with a positive pattern. So replace the dark stuff with gratitude. Make a list. Write a letter of appreciation. Tell your spouse.

In this country, even on our worst day, we have more to be thankful for in terms of liberty, friends, family, spiritual heritage, and, yes, posessions than most of the world on the best day of their entire lives.

A New Way to Lead--A Look at the Obama Campaign

There's a lot we can learn from the recent election campaigns in terms of how they were run. An article in the Toronto Globe & Mail highlights some of the 21st Century leadership and organizational strengths of the Obama campaign. I think some of these easily apply to us and we can learn how to lead our company in these different times and beyond. Check it out at this link: http://www.theglobeandmail.com/blogs/wschachter

Now That It's Over...

OK. It's over. A campaign that by some counts has lasted for nearly FOUR YEARS is over. So...can we let it go? Don't get me wrong. I have a lot of concerns about the incoming Washington crowd. When I say "let it go" I mean the election. Let's look to the future and debate where we are doing, not where we've been recently.

Sociologically, I am thrilled that the "race ceiling" is finally shattered; economically, on the other hand, as a devoted free-market capitalist, I am very concerned. We already have enough government intervention trying to "fix" the market. We don't need more. We need less. Rather than letting the market correct (and even punish) itself--regardless of how violent that correction may be--government is now postponing the inevitable with half-baked measures that, in the long run, won't work anyway.

How to Get More Halloween Candy

At the B&B that my wife owns, we always look forward to Halloween and the scads of children coming by to ask for candy. This morning, I got to thinking about why some kids are more successful (i.e. get more candy) than others. Here are some of my observations. (1) They dress up to stand apart from the crowd (2) They know the neighborhoods and the houses in particular that give the most and best treats (3) They start early and stay late (4) They ask specifically for what they want (5) They have unique methods of asking--this really stands out to me (6) They have large, sturdy bags in anticipation of a lot of candy and (7) they try for more candy than we are willing to simply drop in their bag. The parallels in our world of sales are obvious--can you see them?

Stop Panicking

Between the media and the politicians we are being led by the nose into a world of panic, fear, and knee-jerk reactions. Today's economic whitewater is being compared to the Great Depression. We are going through our "every four year" routine of allowing ourselves to be told by White House wannabes how terrible life in America is (even while needing to beef up our borders to keep people who WANT to live here out). The media (conservative and liberal) is sensationalizing every uptick or downtick on the Dow to gain viewership. And the general public is beginning to cower in financial anxiety and reign in their spending; like a giant herd, we are moving into stampede mode.

Now, don't misunderstand my point. I think it would do most Americans a great deal of good to have less debt and to live within our means. And, economic cycles happen and, yes, the banking industry is in a mess (of their own making). Things may get tough for awhile. We may need to cut back. I'm not an unbridled optimist. But I do know that those who will do well during this time are not those running around making decisions based on fear. Panic is NOT a healthy emotion nor is it a good basis for choices.

Think. Watch. Observe. Act with confidence. Be willing to change on a dime. But don't panic. If I were a conspiratorialist (which I'm not), I'd say panic is exactly what they want us to do.

I Never Knew there WAS a Problem!

I just got an email from NetFlix telling me that their system had gone down and that my shipment of the DVD "Bourne Ultimatum" was going to be a day late. Hmmm...I never KNEW it was late. I didn't EXPERIENCE a problem. BUT they contacted me anyway and BEFORE I could even know. TOTAL PROACTIVE CUSTOMER SERVICE AND PROBLEM SOLVING. Do we do this? Are we ahead of the curve? Do we inform clients of a problem BEFORE they even know there is one? One line from the email says they are "committed to delighting me." Wow. How different from Delta who recently decided to bump me off a flight HALF-WAY HOME in the middle of an itinerary and didn't bother to tell me until I was trying to actually board the aircraft. Needless to say, I'm not currently delighted with Delta but, even though there was a problem, I can tell you that IMHO NetFlix rocks!

Turn on a Dime

Perhaps you've noticed that the US automotive industry is in a bit of disarray (duh!). They're doing massive layoffs, plant closings, sales gimmicks, and more to try to adjust to the current gas crisis. Meanwhile, Toyota has already begun the shift to fuel efficient hybrid manufacturing in plants that JUST WEEKS AGO WERE PRODUCING GAS GUZZLING TRUCKS AND SUVS. Ford, GM, and Chrysler are still trying to "stop the battleship." Toyota has already turned it and will be pumping out products that fit today's market in about ONE THIRD of the time it will take the US companies to retool. That's lean thinking at work. Because they are always LISTENING TO THEIR CLIENTS and TOTALLY FOCUSED ON RESPONDING to what they hear and because they live in a culture of CONTINUOUS IMPROVEMENT AND CHANGE they are able to turn on a dime. That's how we'll outperform ourindustry in times of turmoil and how we'll beat their socks off when the economy begins to pick up again. There is nothing better for us to do than to LISTEN TO OUR CUSTOMERS and be quick to RESPOND TO WHAT THEY TELL US. Staying close to our customers now will ensure that they stay close to us

You Have a Gift, Roy; but it's not Enough

This line, from "The Natural", reveals a major and dangerous temptation for all leaders and performers during times of pressure--to rely on our own gifts and abilities rather than utilizing and optimizing the strengths and abilities of those around us. In the movie, Roy Hobbs (Robert Redford) is an incredibly talented young baseball player who has to learn the hard way that, as his father tried to warn him, his gift is not enough. By the end of the movie, Hobbs has been humbled and realized that character, discipline, and teaming with others is the true path of winning. I wonder, as we work through the pressures of the current environment, whether we act like young Roy (under pressure I just rely more on myself and do it myself) or if we respond like mature Roy (still using my talent but adding the commitment to grow and use the talents of those around me as well).

Freedom and Risk!

Technically, the Declaration of Independence was written over a period of days by Thomas Jefferson, Benjamin Franklin and John Adams; it was signed--not in a grand ceremony--but sporadically as the delegates to the Second Continental Congress risked capture to come in and out of Philadelphia on July 2-3, 1776. The next day, the 4th of July, (after having copies printed all night long) it was announced to the world on what we now celebrate as Independence Day.

The real power, of course was not technical but spiritual and political. This grand document laid out the belief that all men are created equal and endowed by God (not a king or government) with rights that could not be denied them. Because Britain had sought to withhold these rights from the American colonists, so the document read, the people had the right and obligation to throw off the chains of tyranny and take their rightful place as a free and independent nation among all others on earth.

At the end of the Declaration of Independence, the brave men who signed it declared that to "this end, we pledge our lives, our fortunes, and our sacred honor." Imagine it. These few (less than 100) individuals daring to affix their signatures to a document that openly defied the tyranny and might of the British Empire. Truly, these were "dead men walking" and had they been captured they would have paid the ultimate price at the end of an English rope.

They prevailed over the next decade and the United States was born. Yet, since the very beginning, the true liberty of mankind and the rights of humanity to life, liberty, and the pursuit of happiness have required the greatest sacrifice to bring them forth and preserve them. As we enjoy the liberties of our country this Fourth of July weekend, let's pause and remember those who risked and gave all to bring this nation into existence and those who over the centuries have continued to risk and give all to keep her free! God bless America!

Don't Forget Think Time

I had a conversation today with my "favorite AVP"--can't tell you who he/she is or what he/she and I discussed, except to say that it was about think time. That's right--set aside appointments with yourself in your "Starbucks Chair" to simply think about, over, and through your business, your market, your team, even your life.

Think time is a discipline that many of the most effective executives are religiously committed to. I recently read of Vikram Pandit (the new head of CitiGroup) who, even while traveling the world trying to learn about and turn around that financial behemoth, insists on putting reflection time in his busy schedule.

Don't be fooled. It won't happen by accident and it isn't effective when combined with your daily commute. It works when you get out a scratch pad by yourself for an hour or so at a time and really apply your intellect to your situation.

I know we are all busy and under the gun and this probably seems like a low priority. But, I would tell you that what we DON"T need right now is a high level of thoughtless activities or just revving up the engine of the way we've always done it. What we need is for leaders at all levels of the organization to think and think well and think often; then, based on good thought, we can DO what we thought. That will make a difference.

Protecting Accounts

In tough times, your competition is going to get their business anywhere they can--usually by attacking your best account. They have a special advantage--you've already solved the major problems so they can take it over at a lower price to maintain your solution. They also have a disadvantage--you are the incumbent with an existing relationship and it's painful for accounts to change. The question is which outweighs the other? If the latter is the heaviest then you win; if the former, then you lose!

What can you do?

1. Stay very close to your best clients--the ones who you think you can never lose.
2. Explore new ways to bring new value, to solve new problems, at your best clients.
3. Consider a preemptive price reduction before they ask you for one.
4. Expand your network of sponsors and champions inside your best accounts.
5. Start selling their replacement today (just in case).

Enjoying Work

Peter Drucker--not the guy you normally think of when it comes to fun at work--had this to say (quoted recently in a Priority Management Newsletter):

Those who perform love what they are doing. I'm not saying they like everything they do.
That's something quite different. Everybody has to do a lot of the routine; there's an enormous amount of the routine. Every great pianist has to do three hours of playing scales each day. And nobody will tell you they love it. You have to do it. It's not fun, but you enjoy it because even after forty years you still feel the fingers improving. Pianists have a wonderful expression I heard many years ago: "I practice until I have life in my fingers." And, sure, it's a dull routine, but you enjoy it.

The same is true of people I've seen in business who enjoy the work. Their routine is: It's got to be done, and I enjoy it because I enjoy the work. And that is the difference, I believe, not between mediocrity and performing, but between what you call a "learning organization" one where the whole organization grows and then the process changes – and an organization that maybe does very well but nobody misses it after five o'clock.

The 7 Deadly Sins of Entrepreneurs

After 25 years of advising entrepreneurs in a dozen countries and having been a serial entrepreneur myself for most of that period, I have compiled a list of the 7 most common "sins" that an entrepreneur can commit.
1. Believing we can do it all. We started the business and no one can do it better than we can..so we do it..all of it.
2. Lack of clear focus. It was being creative that launched our business, so why not keep on creating. I never met an opportunity I didn't like. The result, however, is diminished focus on the few things that are vital to success.
3. Not saying "No." Entrepreneurs are "yes-men." Saying no seems like missing an opportunity so we go everywhere, accept every challenge, speak at every podium, etc. I have a VP of No. You might need one.
4. Hiring what we can afford. If you pay peanuts, don't be surprised if you end up with monkeys.
5. Being too trusting. I don't want to be naive but I don't want to be cheated either. I've been both.
6. Keeping a friend too long. It's easy for entrepreneurs to become "buds" with the few who were there in the beginning and not notice that they can't keep up anymore.
7. Leaving too early. Because we like starting things, it's sometimes hard to hang around long enough to reap the lasting rewards of our creativity.
I said "7." I bet there are "70."

What is Performance Management?

There have been volumes written about Performance Management yet at its core it's really quite simple. It means that a company has embraced a culture of setting agreed goals, holding people accountable to those goals, and rewarding those who achieve them. This can happen on the macro-level at which strategic planning is more than an academic exercise; a plan is meant to be executed and people actually commit to do so. This can happen at the micro-level in which individuals are expected to set and achieve results, are measured and coached to those results, and are rewarded (or not!) for what they actually contribute to the company. This can happen at all points in between.

Here are three components to Performance Management that apply at all levels. They are a simple guide and a useful test.

1. Clear and agreed EXPECTATIONS. Does everyone know and understand what the desired outcome looks like? Does an employee truly know in specifics what is actually required of the job? Is a clear set of business objectives created and articulated? Are clear metrics in place to determine progress to plan? Success? Failure?
2. Regular and honest FEEDBACK. Accountability means "the ability to tell the story." Is every employee, team, business unit head asked on a regular basis how they are doing and what they are doing? Are the metrics applied to them? Is management giving true and timely appraisals of work done (or not done)?
3. Appropriate REWARD AND CONSEQUENCES. It has to matter. Paying those who achieve goals and who do well more than those who don't is the purest form of capitalism and is NOT favoritism. Not everyone gets a trophy. There are winners and losers. Performers and non-performers. The simple truth is that some contribute more than others and therefore should receive the greater reward. Let the under-performing, closet socialists complain. Life is not meant to be fair!

I Coulda Had a V8!

As I finished a kaizen event this afternoon and the team did the obligatory management report-out, I couldn't help but laugh when the executive sponsor said over the speakerphone that he had experienced a few "I coulda had a V8" moments. In other words, DUH! It was the obvious, little things that made the difference--and the difference was in the millions of dollars.

On the two hour ride from Knoxville to my home in North Carolina, I kept thinking about this and here's the burning question I kept kicking around: HOW MANY OF THE THINGS WE STRUGGLE WITH ARE THE RESULT OF OH-SO-PAINFULLY-OBVIOUS CAUSES. We have been conditioned to look for the exotic, brilliant, breakthrough answer and the mindbending AHA! As a result we miss the clear, in-your-face simple things that, if seen and addressed, could make a lot of difference. Some of you get this. For those of you who don't, well...you've just proved my point.

It's All About Focus

A client of mine recently inaugurated a set of 2008 initiatives wrapped around 3 high impact areas. Knowing the leadership of that company very well I find myself worried that somehow this will get turned into working harder and longer hours--they already work exceedingly hard and incredibly long hours because of how much they (and I, for that matter) care about the company. In this case, importance becomes urgency becomes working harder.

This got me to thinking about the fact that it's not about working harder--in very few cased do I see reasonably successful people who don't already work very hard. And I'm not going to say it's about working smarter (which generally means cramming more into a day through false efficiencies--essentially another form of working harder); this makes me want to hurl!

The real issue at hand is focus--doing a few, highly impactful things really well rather than doing a bunch of things tolerably. Most of us are deathly afraid of saying "No" or of taking something off our list. We don't unsubscribe to email newsletters. We don't tell people we can't be there. We don't eliminate--we expand our commitments on a regular basis. The result is diffusion, confusion, and overall frustration.

Strategy is not coming up with a list of initiatives (the more the better) and then trying to do them all. Strategy is considering all the things that you could do and then reducing that list to the fewest possible things that you must do. It's all about focus. At a company level and at a personal level, stop and ask yourself about your sense of focus.

The Right Continuum

As we once again enter a time when companies are laying off people, the old question of employee loyalty arises. People who want to be loyal to corporations find themselves disillusioned and even cynical when they realize that companies are not loyal to them. They struggle to determine how loyal and how independent they should be. The problem with this thought process, as I see it, is that it asks the wrong question--or put another way, we are trying to plot our position on the wrong axis.

Imagine a graph where the horizontal axis is the loyalty--independence axis. Add to that, however, the vertical axis on which the highest point is integrity and the lowest is manipulation. This, I argue, would give us a more realistic (and satisfying) way of thinking about our relationship to a corporation. It's not just about loyalty that is either reciprocated or not. It is about integrity, i.e. how open am I about the basic reality that an employee and a company should remain connected ONLY as long as the relationship is mutually beneficial. Loyalty in a world of economic volatility and continuous change is simply unworkable. Integrity, on the other hand, works in all cycles of the economy and is entirely in the control of either party. Nothing forces a company to lie to its employees and nothing forces an employee to manipulate his or her employer. These are choices, decisions that, while not always pleasant, are always healthy.

Specifically, I ask my clients who are employers to dare to deal with their employees on the up and up. To acknowledge that relationships end because mutual benefit ends. I ask my clients who are employees to do the same. When each will face reality square on, then each is empowered to do the right thing and to press forward in the path that is best for each.

George Washington said that nations do not have altruism but only self interest. This is good economic counsel as well. As long as it is in the best (self) interest of both parties, then an employment relationship works and works well; the moment one shifts to manipulation, a disaster is in the works.

What say you?

Prospering in Tough Times

There's a great scene in It's a Wonderful Life (if you haven't seen it at least 10 times I doubt your humanity). It takes place in the Bailey Building and Loan during a "run" on the banks of Bedford Falls. Potter, the town miser, is buying up bank stock at 10 cents on the dollar and tries to buy up the Building and Loan stock as well (which would give him effective control over every financial institution in town). George Bailey (Jimmy Stewart) warns the people with these remarkable words. "Potter isn't selling. Potter's buying. And why? Because we're panicking and he's not."

Uncertainty leads to a kind of panic and knee jerk reaction rather than a calm reasoned action. Potter, the villain of the movie, is actually setting a great example for American business leaders in times like we will most likely face in 2008. Many will panic and make unwise decisions. A few will remain calm and thoughtful and focused on their strategy. The latter will always win over the former.

While 2008 will require adjustments and changes, thoughtfulness and courage will prevail.

Getting My Feet Wet

My IT guru Melissa, tells me that blogging is where it's at. That's enough for me...so I'm in! Since I love to write, since I love business strategy, since I love leadership---it makes sense for me to write a blog about business strategy and leadership issues. I'm hoping that others will join me in this journey.