It is complicated
Doesn’t it seem that we spend way too much time doing things that we don’t like to do and not nearly enough time on what we enjoy?
Or, we work really hard, but it doesn’t get us the results we seek?
There are so many ways to do things, yet we do them in the same way we always did them. It just seems easier, or faster or less complicated.
But, life is complicated. And, sometimes we need to get really clear about where to focus.
Working with a wonderful team at a growing entrepreneurial company I suddenly realized that while we were talking about strategy at the 30,000 foot level, it was not what they most needed to do. They didn’t need one more exercise in strategic goal setting, but rather to take one idea and peel it down layer by layer until every commitment and each step was on the calendar for all employees involved in making this project a success. This is a company that is always in such a hurry to put out the next fire, that customers who should have been ecstatic with the quality of their product, were left annoyed at small details that weren’t addressed.
Sometimes we just need to focus on execution. If it is not working take it apart and try doing it another way-stop suffering.
What’s in a Strategy?
In today’s Wall Street Journal Nov. 30, 2009, there is a front page article on Oracle CEO Larry Ellison’s decision to vertically integrate through its purchase of Sun Microsystems which makes hardware, something Oracle never did before. In fact, Oracle’s strategy for the first time in its 32 year history is to create a conglomerate of computer software, hardware and components like “TJ Watson Jr’s IBM”, Mr. Ellison said in September.
SO, what’s in a strategy? When do you hold ‘em and when do you fold ‘em? In Mr. Ellison’s case, it was opportunistic. He suddenly had access not only to Sun’s software, for which he originally bid, but the hardware and computer components business as well. Mr. Ellison began to think about the benefits today in vertical integration. Lots of other companies are doing it too. Companies that were selling off parts of the business to be more efficient only 2 years ago are selectively buying parts that they now want to control. SO, would that work for Oracle?
Well, guess what? Times and conditions change. We make certain assumptions about the world when we set a strategy. Assumptions like, the dollar is stable and the banking system can depend on the US market. Or, the basic commodities on which my company depends will be cheap and readily available. Or, I can count on delivery times from my suppliers. Efficient world markets and ready supply of commodities made this all true for many years. Now, that has been challenged and companies that could afford to focus on only what they excel at are now looking at gaining back direct control. Their assumption that we could depend on efficient markets is no longer certain. If they cannot deliver the correct product at the correct time at a fair price, they will not maintain their dominance in the market.
Secondly, the break-up of large conglomerates accelerated efficiency in the market. All the benefit from that has been incorporated in these new companies. Future growth has to come from something else. Each of these suppliers had to make a profit along that chain. By, integrating them, some of that profit and some of the redundancy (back office, overhead, etc) can be squeezed out at the same time as control gets tighter. This will benefit the new conglomerate and ultimately the customer.
Thirdly, a strategy is not written on a stone tablet. Many competitors exist in a given market with differing successful strategies. You do need to have a strategy and to take careful steps to execute that strategy. You do need to evaluate your success with a cold eye. If it is not working then you do need to figure out whether another strategy is likely to be better. That’s what Ellison did. Is he right? According to the Wall Street Journal Ellison said, “We’re really brilliant, or we’re idiots.”
“You can accomplish more in a crisis than in steady-state periods.”
In the Nov. 23, 2009, Los Angeles Business Journal, there is an interview with Ted Carver, Jr. the CEO of Edison International. He was talking about a time of crisis in California when the electricity prices were deregulated and the cost of electricity was turned on its head. He was asked what he learned from the crisis. He said, “In a funny way, you can accomplish more in a crisis than in steady-state periods. You don’t ever want to squander one of those opportunities to effect change and make a difference.”
For most business owners, the last year has been an “opportunity” to effect change. Headcount had to be cut. Capital expenditures stopped. New projects put on hold. 401k contributions halted. And, did I mention the number of people that had to be let go to keep companies afloat? For some whose businesses have been streamlined, and projects and people down-sized, this has produced a sense of relief. In general, most businesses have figured out by now how to stay profitable at these lower levels. However, walk into any business and you will find everyone working harder and longer.
SO, how do you find opportunity in all of this? In previous periods of disequilibrium, there were individuals who emerged as hugely successful because they took advantage of the changed circumstances. Those who have cash can buy businesses and property at reduced rates. Competitors may be weaker. Increasing marketing and improving customer service can retain customers and attract new ones. What about reaching out to new customers through social media?
As we get to the end of 2009, engage your team to reflect on what the world will look like in 2012. Don’t just think of 2010. Where will you need to put your resources? What will you need to let go of? What is one thing you will have to do differently? What have you been afraid to try, that you can’t wait any longer to see if it works?
Let me know what you decide.
What can we learn from working mothers? Pt. 1
What can we learn from working Mothers that lead large organization?
- They can change activities quickly
- They focus on results
- They keep track of lots of random information
- They prioritize and reprioritize all the time
- They go for the best fit solution quickly when there is an emergency
- They are used to emergencies
- They know how to ask for help
- They adapt to change
- They pick their battles
- They hold firm when they believe it is really important for their constituency (kids or staff or company objective)
- They tend not to care who gets the credit
- They can negotiate with 3 year olds
While some of these ideas may be a little too perfect, I have seen everyone of these stories in real life....just not all in the same person. :>)
I'll break this down into smaller pieces over the next few days.
They can change activities quickly
Standard advice for most CEO’s is to clear your desk of distractions and focus on one thing at a time. I wish. Most CEO’s can’t get that kind of clear focus until all the staff goes home at 7 pm. So, be clear on what is important and schedule time on your outlook for you to do YOUR projects.
They focus on results
Many firms place a lot of emphasis on face time-being there late because the boss is late. You will notice that the working Mother is not one of those, many times to her political detriment. She has only the allotted time before the day care center closes to get all the day’s work in. She doesn’t smooze, she’s meeting with her staff, or finalizing the report. She probably hasn’t seen the latest movie, or watched the basketball game, but she doesn’t miss the deadlines at work or at home. Pay attention to the results and the outcomes.
They Keep Track of Lots of Random Information
She remembers your birthday. She remembers the birthday of all her staff. She knows their kids’ first names and what grade they are in school. She remembers the client’s birthday. She remembers the names of her kids’ friends. She remembers what is important to the person inside the employee or client. Pay attention to the relationship.
They prioritize and reprioritize all the time
The client calls and wants the project finished 2 days early. She puts the kids to bed and calls the team who all work on the project remotely until it is agreed that it will be finished on time. Be flexible.
More to come on Wednesday.....
The New Normal
This is the “New Normal”- What now?
Wall Street seems to believe that we have bottomed out.
Down on Main Street, we are working with reduced staff, reduced pay, and reduced profits- if there are profits. Down on Main Street, we don’t see hiring anyone back, or anyone new, for months. Down on Main Street, that sure doesn’t look like a recovery.
So, if this is it, this is where we are going to be hanging out for the next year, what do we have to do to get comfortable with NOW? What do we have to do to increase revenues, to keep staff motivated, to retain existing customers and get new ones?
We are almost at year end. Time to make a plan for success in 2010. Some people are going to figure out how to outperform the market in THIS market. Will you be one of them?