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Sunday, November 15, 2009

De-Funking the Funked

posted by Jim Martin
Here's a tough issue.  You're in an organization whose employees, lower level managers and pretty much everyone, is in a funk.  They are worn out, feeling beat up, and not interested in any kind of entrepreneurial thinking.  Their ideas have been rejected by the former top management so many times it's not funny. Although there is a new group of top management people, there appears to be a lack of trust in the integrity of top management, and a lack of confidence that any new ideas will be effective. Under-staffed and under-resourced, employees just don't want anything to change and they don't want anything new. 
 
Given the current economic situation and projections about future market conditions, the new group of top managers is trying hard to move the organization out of its current weakened position. This group of managers recognizes that innovation is the key.  Normally a very productive and very ingenious group of employees, the rest of the organization won't move becuase of this "funk."
 
How do you turn the organization's climate around?  How do you de-funk the funked?
 
I'm not an expert in this area - I'm just raising the issue.  Over the next few weeks, I'll be asking a number of experts what they suggest and I'll share their thoughts.
 
If you have any thoughts on what an organization can do to rid itself of this funk, please share your ideas in the comments.
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Posted in: Leadership
Tuesday, November 10, 2009

Metrics That Matter

posted by Jim Martin
The other day, someone asked me "What metrics should I be tracking?"  The person said he had too much data and not enough information.  Based on all their data, he wasn't sure what action to take or when.  I think at some level this is pretty common and I think the question deserves some attention.
 
The answer is simple enough - "Track what you want to have happen."  That way, you can be sure that it happens and you can fix it if it isn't happening.  But this answer belies the complexity in the question.  
 
Most people want more sales and more profits.  Tracking these two items is obviously important but they rarely are informative enough by themselves to be actionable.  So, what other metrics do you track?   To wade through this complexity, you have to start at the beginning (does anyone want to sing Do Re Mi?).  
 
First thing is to make sure that "what you want to have happen" is something that you can control and is something that is actually connected to the organization's performance. Of course, at some level everything is connected to the organization's performance, but you can't track everything.  Too many metrics means you'll be overloaded and you probably won't be able to make a decision about anything. Those things that you control and that matter most to the organization's performance should be what gets tracked. 
 
How do you know what matters most to the organization's performance?  The real question is what drives your sales and profits? Answering this requires a model that represents how the actions that you take in your business are related to your sales and or your profits. Developing this model will guide your choice of metrics. 

Most managers have an intuitive sense for this type of model, but making it explicit is important.  It means you can communicate it to others, you can examine and test assumptions that you are making, and you can consider whether you have all the right components in the model.
 
Second, after the model is identified, the relevant outcomes to track are identified.  Third, decisions must be made about how these are measured and how often they get measured. Finally, an easy to read format that can communicate the data as information has to be designed.
 
That's the process.  Each step has its difficulties, so in subsequent posts we'll take a look at each step individually.

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Posted in: Strategy
Monday, October 26, 2009

The Jack Story

posted by Jim Martin
A meeting on Friday reminded me of "The Jack Story" (which was part of an old stage routine of Danny Thomas many years ago).

Here's how it goes: 

A salesman is in the middle of farmland in Iowa, driving home on a country road from his last sales call.  It's late at night.  It's snowing like crazy.  He's tired and hungry.  He gets a flat tire. Grumbling, he gets out of the car to get the spare tire and the jack from the trunk.

There is no jack.  What's he supposed to do now? He can't fix the flat without the jack.  He decides to look for a house so he can borrow their jack.  He sees the lights of a farmhouse in the distance and thinks "Farmers are always so friendly and helpful...I'll go knock on their door."

Grumbling again, he realizes he will have to cross several fields to get to the house.  As he starts out he puts his foot right into a deep puddle.  Yuck.  Now his foot is cold and wet. He thinks to himself - "As long as the people in the house are friendly and helpful, it'll be worth the effort."

He climbs over the barbed wire fence to cross the first field and he tears his coat on the fence.  "Damn, that was a nice coat!"  Now becoming angry, the salesman stomps across the field toward the house and thinks "I sure hope that farmer wants to help me."

The salesman falls down in the field and now has mud on his pants.  He's cold, tired, and dirty and just plain mad about everything.  He thinks "I bet that farmer isn't going to want to help me - I bet he doesn't even have a jack!" But he keeps going because he doesn't have any other options.

As he approaches the farmhouse, the salesman slips in a pile of cow dung.  He's now cold, tired, dirty and smells like cow dung. Absolutely furious, he thinks "That farmer is probably sleeping - I'm going to wake him up and he'll be rude and won't help me.  Well, I'll show him..."

So the salesman storms up to the house and pounds on the front door.  After a few minutes the farmer comes to the door in his pajamas.  The salesman screams "Keep your damned jack!" and stomps off.

For some reason I like this story - I frequently see versions of it in different contexts.  As managers and leaders we can't let obstacles, no matter how frustrating, deter us from our objectives.   

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Posted in: General
Tuesday, October 20, 2009

You Can't Save Your Way To Success

posted by Jim Martin
In a meeting this morning with a group of managers, one person said it.  "You can't save your way to success."  The idea is simple enough. 
 
Cutting costs will only take you so far because it's a very short term view.  Without generating new growth in revenue, you will forever be trying to cut costs to achieve success.  It doesn't work.  New growth has to come from innovation in offerings or innovation in customers or both. 
 
For such a simple idea, why do so many people seem so very willing to stand in place and not pursue new ideas?  This is not something that is new.  Articlesbooks and blogs have been written about it for a long time.  But for some reason the message just isn't landing well.
 
The issue reminds me of my tennis instructor, Toby, from a few years ago.  He used to drill this into us...No one will hit the ball to you.  If you stand still, you are 100% sure to miss the ball.  You have to move to where you think the ball might be hit.  You could be wrong, or you could be right.  But standing still will always be wrong.
 
Then he would tell us that it takes two things to be in the same place where the ball gets hit.  Of course it takes skill at reading your opponent to get a sense of where you need to be.  But it really takes the drive and the passion to start moving. 
 
It's time to start moving.  It's time to innovate.  It's time to be where the market is going to be next year.  All it takes is the drive and passion to start moving.  Then read the marketplace and innovate.

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Posted in: Marketing
Saturday, October 3, 2009

The Mess (Part 3) Vision - Values = Crisis

posted by Jim Martin
We woke up this morning to another headline about a local government official pleading guilty to bribery and corruption.  Turns out she had been funneling bribes between contractors and her boss for a number of years and in return received approximately $150,000. 

Her response to it all was that her "moral compass was out of whack for a while." 

Really?  If she was lost in the wilderness and she was talking about a real compass, she would have been eaten by bears a long time ago.  Human nature is so much more forgiving than mother nature.
 
The people who dreamed up this morning's headlining 10-year bribery plan definitely had a vision.  
 
And the same is true for the people who figured out that they could get paid a lot of money to sell subprime mortgages to consumers without worrying about the risks by using the subprime mortgage backed securities market to pass the risk on to someone else.  That took some vision.
 
The problem with these subprime mortgage "visionaries" is that their vision was absent of any values. Vision in the absence of values opens the door to excessive greed.
 
Excessive greed was never taken into account by the architects of the subprime mortgage concept.  Alan Greenspan has since admitted that his thinking about regulating alternative securities instruments (including the subprime mortgage backed securities market) was flawed because of this.  He relied solely on economic theory, which assumes the "best interest of all" in the long run.  Economic theory does not entertain the possibility of excessive greed as a problem so there was no policy in place to control the excessive exuberance exhibited in selling subprime mortgages. 
 
Leadership certainly requires vision.  But vision without values is what excessive greed is all about.  True leadership requires both competency AND compassion.  Real leaders lead with vision AND values.  

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Posted in: Economy
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