Clarifying Learning to Speak...and Not Writing Reports

People have asked what I meant in my last post when I said I stopped doing client reports after leaving my first consulting job. Did I stop consulting?

The answer is no. I've done 20 more years of consulting after that. But I changed my approach a lot.

From my first consulting job, it was clear to me that 'traditional consulting'  - big study, nice binder, fancy presentation - didn't work very well. I recall thinking that of over fifty (!) projects that I participated in in that first consulting job, only one - a project with a large cereal and pet food manufacturer ever lead to what I would have called significant change.

So, I went seeking another approach and found a smaller consulting firm with a few, high profile clients. For them, writing 'reports' was unheard of. Instead they did case studies, went undercover, facilitated work sessions, produced training videos, coached and mentored managers and front-line employees - and basically invented whatever approach they felt would have the greatest impact for their client. Writing a formal report was never an option.

For me it was heaven. And change happened every day.  It was a better way.

So since then I've incorporated that learning along with the experience from running several organizations - into a consulting approach that is more hands on, facilitator-manager-coach-mentor than consultant. Because it works.

And I never write reports.

You're Not a Leader

Fortune Magazine's latest issue on 'How to Build Great Leaders' is an anemic, less than insightful view what it takes to be a great leader (magazine woes and thinner issues are having an impact on Fortune's overall quality).

The cover picture though, seems quite insightful.

The picture of 1) a male 2) with an empty head 3) made of bricks 4) wearing a white shirt 5) and tie 6) dressed in a blue suit jacket is a depressing (and perhaps too realistic?) vision of leadership excellence.

And it's an interesting juxtaposition to Fortune's previous cover picture - of Steve Jobs - Fortune's CEO of the Decade.

Here's my ode to white-shirted, empty headers who will never be great leaders.

You’re not a leader if you don’t have any followers.

Do you get that?

They can give you every title in the book – CEO, COO, CFO, Chief Cook and Bottle Washer – it DOESN’T MATTER. If the people you’re supposed to be leading think you’re an ass – you’re not they’re leader.

You’re their whipping boy.

Because.

This isn’t about you.

This is about them.

This is about them trusting you. Them respecting you. Them looking up to you.

This is about them feeling like you listen. Them feeling like you care. Them feeling like you think they are capable. And smart.

Important.

And human.

This is about them thinking you are good at your job. Them seeing you take your role as seriously as they take theirs. Them knowing you care about the organization.

Not just about yourself.

So.

Dude!

You need to change.

Drop the ego and stop talking.

Stop being so f’ing smart.

Start learning. Start listening.

Start being nice.

Go for a beer. A lunch. Grab a coffee.

Ask about the kids. The gym. The vacation.

And start doing your job. Otherwise. You’ll never be their leader.

Seth Godin's 'The Dip'

A good friend of mine got fired from his job this week. It's been a tough week for him and lots around him.

It pisses me off. Not that he got fired. It pisses me off that he didn't quit a long time ago. Like I suggested. If he'd done that, then he wouldn't have wasted the last 2 years. His reputation wouldn't be at risk. And he wouldn't be grieving getting fired now.

So it's kind of ironic that I came across Seth Godin's book 'The Dip' on iTunes yesterday.

Although it's only moderately rated by iTunes and Amazon reviewers, there's no way this book won't make you think.

There are a few key concepts:

• set out to be the best, whatever that is (best friend, leader, search engine, blog - Godin talks about being the 'best in the world' - a concept I also believe in although it risks seeming to grandiose for many)
• recognize that there will be obstacles to getting there
• figure out the difference between obstacles and brick walls - what Godin calls the difference between dips and cul de sacs
• the rewards for 'leaning into' the dips and making it through them are generally large because the dips thin the herd, creating scarcity
  
• quit strategically when it's clear no matter what you do, you're not going to make it - you're facing a cul de sac, not a dip
• quit fast before you waste resources like time, dollars and reputation which would be better deployed being the best somewhere else or in some other, better way
  
• plan before hand what the conditions must be for quitting - quitting in a dip, just because you're winded, tired and it's raining (and therefore susceptible to quitting) is dumb if the finish line of the Boston Marathon is only 5 miles away

Godin works hard at blowing away the notion of 'never quit'. As he asks 'never quit bed-wetting?'. Really? If you haven't done that yet, it's time.

My friend needed to quit (his job) 2 years ago. There is no way what he was trying to accomplish was going to happen. It wasn't just the obstacles he was facing, it was how he was facing them. Another of Godin's points - maybe the goal's not the problem, maybe it's the strategy. Maybe that's what needs to be quit.

I couldn't agree more with what Godin's articulated.

Over the years it's not that I've seen too much quitting, it's that I haven't seen enough of it. Too many mediocre companies going nowhere. Too many Boards hanging onto lousy leaders. Too many CEO's hanging onto failed strategies. Too many employees hanging onto lousy jobs.

Why?

Laziness - quitting isn't easy.

Pride - "I'm not quitter".

And bad business - "what is it we're trying to accomplish again?"

Anyone looking for silver bullets will find 'Dip' a little frustrating. Is it a dip or cul de sac? Godin, trys to make it as black and white as possible but ultimately he can't answer that for all his listener/readers. But knowing those are the options is a good start.

It's helped me. There are a few cul de sacs I'm quitting as of today.

Off for a week

I'm heading down south for some sun. Some thoughts before I go for some people I know:

- welcome back, it's a good move
- stay focused on sales - don't get distracted
- leadership is all about confidence - you're going to do great
- change isn't easy but this will be ok - hang in there
- it would be really cool if you worked out!!!

Have a great week.

Where the Clues Are

Posting on owner-operators over the past two days got me thinking about something that applies to every business - understanding the business based on facts, not perceptions.

Because my role involves walking into companies I don't know and learning their businesses I get to hear a lot of what people in organizations THINK their business is about....who their target customers are, where they make their money, where there dollars are going, etc, etc. Pretty basic stuff.

And, in one company out of 5 or so, what the organization thinks and what reality is are actually in sync.

Too many companies though, run their businesses based on folklore.

They run their business based on some outdated, half-cooked, never verified perception that is repeated from the top-down without question.

My company is called Boardroom Metrics. I chose the name to reflect the need for managers and directors of companies to get the facts about their business first, then make decisions based on those facts.

When I go into organizations, gathering the facts is one of the key activities that gets organized. It's easy to show everyone "THIS is where the clues are".

Sometimes, getting the facts isn't easy. Market data, particularly in new or underdeveloped markets can be frustrating and misleading. Poor tracking of key customer characteristics, like age, gender or income level can make knowing who the customer is almost impossible.

If the facts don't exist, then beginning a collection process is key.

When the facts do exist they are always, always enlightening.

So, question. You're reading this post. You run a Board, an organization, a department. What facts about your business have you taken for granted, but never verified? What facts don't you know? What facts might change your business?

Go get 'em.

Owner Operators

Yesterday's post on why owner operated businesses fail got some interesting responses. One was left as a comment to the blog - which I decided not to post - the others came via phone and email.

At least one response was positive.

Yesterday's post was not a shot at owner operators. Why would I do that?

It was a warning.

Something to think about.

I do a lot of work with owner operators. Most of them running companies that are performing below expectations.

And do you know what I see? I see the same leadership issues EVERY COMPANY I go into.

The issues are SO similar, I start to question whether maybe the issue is me. Maybe I'm losing it - perhaps it's my perspective that has simply shut down. I've stopped looking for creative or unique solutions; no longer capable of looking beyond a few well-trodden personal beliefs. Maybe that's the case.

But here's what drives me to keep exploring it. The businesses where the owner-operator has gotten it - taken some advice, learned how to manage, learned how to trust, stepped back...and changed to adapt to new realities....have all succeeded.

And those that haven't are either just hanging around, or are out of business.

Coincidence?

Why owner operated businesses fail...

...because your industry has changed over the past 10 years and your business hasn't

....because running a business is different from owning a business

....because you don't have any business experience outside the one you own

....because you'd rather be the CEO than the owner

....because you don't trust anybody but yourself

....because you think employees who suck up to you are employees you can build the business
around

....because you're open to ideas so long as they're exactly the way you want it done

....because you were successful once before and you think you are a genius

....because by the time you see the mess you've made it will be too late.

Business according to Mr. Google

Here's a decent video interview with Eric Schmidt, CEO of Google. Not sure there are any big ah-has...which is alright.

His comment on the Longtail...that the internet makes the head even more important isn't new.... but it is worth keeping in mind.

Also, as a management consultant and observer of many different organization cultures, Schmidt's comments on management make me smile. First, that you need a leader to enforce deadlines in the group - "otherwise you have university". Second, that you need dissent - "otherwise you have a king". Simple, good insight.

Here's the link.

Value vs. F'ing around

Last night over dinner, a friend of mine was enthusiastically filling me in on the progress her company is making. New this, new that. Invest here, invest there. Getting listened to, doing stuff, making stuff happen.

I like this person. One one hand I appreciate her enthusiasm. It's good.

On the other hand, I believe she is naively misguided....and (surprise) I told her so.

Two questions. First, how are sales? She knew the answer. Marginally down.

Second: How is profitability? I knew the answer. It's not what this organization has ever worried about.

I pointed out to her, that (in my humble opinion) spending lots of money, in fact more money than ever before to tread water or even sink below it is not progress. It's failure. Raw, ego centered botching of business basics. Profitability, of which I'm sure there's still some, is in the toilet.

It's the kind of predictable failure that enables not-so-sharp people like me to go ahead and predict the future. What she doesn't see....but soon will....is inevitable.

There will be lay-offs. By Christmas, January at the latest. Crazy perks, like bringing your neighbours pet to the Children's groundhog day party will be gone. Other expenses, like travel and meetings which this company overdoes on a grand scale will be cut back to nothing. Then there will be the inevitable search for ever-greater efficiencies. Why does a company with only a limited number of products need a head office of 100 people? There will be more lay-offs.

Then one day, the investors in this company will really wake up. Where is the value in this organization? In it's product? In it's back office and administrative capabilities? It's distribution network? Probably not. In fact, it's probably no where.

So now what? There's nothing like being stuck in an investment. Sure the lifestyle is good...and f'ing around, playing manager is fun. But no business is an island. When the recognition sets in that there is no value in the business and none has been created despite millions and millions in investments, then the fighting between the investors and finger-pointing on the management team will be spectacular.

Trying to be helpful, I suggested to my friend that given her capability, enthusiasm and desire to grow, she should start trying to influence a more thoughtful, business-like direction for the organization before the inevitable happens.

You know, she's good. I think she gets it. I don't think she'll be one of the ones laid off.

Dude, step away from the office

These are stressful times.

Today my broker called. He's been terrific through the market melt-down - keeping me informed, getting advice, sharing insight. I feel well looked after and frankly, lucky he's my broker.

What's happening in the market hasn't been easy for him. What we're going through now is unique, once-in-a-lifetime type stuff. He's seen a lot. He hasn't seen this.

The other day he was telling me how he was so pre-occupied, he only shaved half his face (unfortunately, as goofy as that sounds I actually had a better story - I showered and only dried my hair! - we had a good laugh). I feel for him.

Today he called to share his thoughts on the lessons learned from what we've just been through and how to protect for it in the future. He had an excellent plan.

You know, I appreciate it.

If more businesses would learn from the difficult experiences they go through, they'd stop going through so many difficult experiences. However, today I had a different thought for him.

"You're on the wrong track."

I know what's happening because I'm seeing it everywhere. Faced with adversity, uncertainty, fear...and frankly in some businesses, too much downtime.....people like my broker are working themselves into a frenzy. They're working overtime to come up with solutions to save the world, fix the past and cure cancer. All in one fell swoop.

You know what...he doesn't need to. It's the wrong thing to do. Knee-jerking and over-reacting into crazy but well-meaning directions is exactly how to compound the mess that's already out there.

This just doesn't apply to my broker. I know a business owner making the corporate version of the same mistake. He's like a crazed pyro-maniac lighting new fires everywhere he goes. Unfortunately, there won't be much left standing if he keeps it up.

So, here's the direction I gave my broker: your job is to maximize the return on my investment. There is RAW POTENTIAL to do that everywhere I look right now. At least in my lifetime THERE WILL NEVER BE A BETTER TIME to invest in great companies at huge discounts. Don't worry about inventing a better way to protect me so the next time this happens I don't get killed. I'll be dead anyways. GO AND MAKE ME RICH. Stop over-thinking this.

And for the business owner: man, you MUST get a plan - and stick to it. No, the economy isn't great and sales will slow down. But your product needs some attention. Now you're going to have some time to work on it. You're not going to execute any of that other stuff anyways. Blow this opportunity, AND YOU WILL BE OUT OF BUSINESS.

So, bottom line.... yes, there's stress and in many cases fear. But working long hours and coming up with new, crazy directions (working dumb) isn't the answer. The answer is probably something pretty basic. Something fundamental. And once you've figured it out....get out of the office...before you break something!