Jun 232012
 

No leader in their right mind would deliberately take their company on a suicide mission. No one would initiate projects, programmes or activities that would foul up their organization’s culture, operations or results. Or agree to major commitments that would be a deadweight on performance. Or assign valuable people to tasks they never should have been doing. Or waste their own time and energy confusing and demotivating their people. Or wear themselves out trying to drive an agenda that was full of flaws.

Or would they?

More often than they know it, executives are their own worst enemies. Their good intentions cause endless trouble for themselves and their firms. They create the very problems that they worry about. They pour resources down the drain and wonder why they never get the results they seek. And perhaps worst of all, they never discover just how well they might have done.

Here’s what I call The Performance Paradox: In trying to improve results, managers deliberately, systematically and at considerable cost apply measures that come back to bite them in the butt by hurting performance. 

If you think this is a hysterical rant with no foundation, think again. And look at how easily it happens—and why it’s so common.

Management’s cycle of self-destruction

Start with the fact that every leader wants to better yesterday’s results. Sales should go up. Costs and waste should fall. Productivity and quality should surpass previous levels. Innovation and improvement should take customer satisfaction to new heights and make it possible to capture new markets. Profits should rise.

Wanting all this, the first question is, “Why haven’t we got it?” So introspection and diagnosis begins. And inevitably—between comments about fickle customers, competitors playing foul, IT problems, a lack of resources and so on—answers like these pop up:

  • “Our strategy’s not working—we need a new vision, mission and values”
  • “Our culture is wrong, so we need to change it”
  • “There’s no teamwork—our people operate in silos”
  • “They’re disengaged”
  • “We have a skills shortage, so everything is up to the top team”

The second question is, “What should we do?” And the fixes seem obvious:

  • Get a new vision, mission and values (preferably through a companywide conversation)
  • Change the culture
  • Teach people change management and involve them in change management projects
  • Start some teambuilding
  • Become “customer-centric” by making speeches, running workshops for all staff and putting up some posters
  • Motivate the people—get a motivational speaker for the company conference, improve the canteen food, spruce up the place, set up coffee bars in open spaces, put happy faces on all screensavers, introduce “casual Fridays”
  • Have HR find a new performance management process
  • Make empowerment a way of life—spread the word about “servant leadership”, get an expert on “ubuntu” or offer some courses on personal branding and self-actualization

But are these the right fixes? Chances are, definitely not. The management field is abuzz with nonsense. Too many vendors peddle one-size-fits-all panaceas. Flaky fads and unproven “solutions” are a dime a dozen. There are more tools than can ever be understood or used—many of them utterly worthless. And for every one of them there’s sure to be a champion, all too eager to take charge of a budget, make work and build an empire.

Besides, what appears at first sight to be an obvious problem might not be where an intervention is needed.

Take culture, for example. What exactly might be meant by the sweeping statement, “We need to change the culture”? Is culture a proxy for lousy leadership, skills gaps, a toxic climate, a dysfunctional structure, uninspiring incentives, weak systems, inadequate performance reviews, poor communication or some other factor? And if one or more of these is the real problem, isn’t that where attention should be aimed?

Or take another favorite—team building—trotted out as the answer to almost all corporate ills. Is teamwork really a problem, and if so, why? Could it be that no one knows where “the hill” is, so they’re all picking their own? Do they understand the company’s priorities? Are roles and responsibilities clear, and do people know what to expect from others? Are the right people in the right jobs? Are there enough meetings, are they about the right things, do they include the right people and are they well managed?

Follow a poor diagnosis with inappropriate treatment—or treatment you don’t know how to apply—and it’s all downhill from there. In no time, you’re in a doom loop. The “solutions” that looked so smart either cause whatever problems might exist to become even more entrenched, or quickly lead to others. Suddenly, there’s a flurry of new activities all over the place and people are bogged down under their weight. Complexity increases, confusion mounts and frustration grows.

But hey—you’re busy, busy, busy! You’re being proactive! You’re taking action!

All of which costs money and distracts people from what they should be focused on. The same old problems keep coming up in meeting after meeting. And again and again, the same solutions are offered: work harder at the initiatives that aren’t working, or get another one … or a bunch more. Or make a video and some T-shirts to rally the troops and drive the message home. Or send some of the team to a course. Or … whatever.

So how do you avoid this cycle of self-destruction?

  1. Face reality. Get your diagnosis right. Separate facts from mere opinions. Be alert to how politics, agendas and emotions color things, and don’t let them get in the way or distort your views.
  2. Be especially wary of too quickly settling on the “vision, mission and values” issue, trying to change the culture, or teambuilding or “empowerment” projects.
  3. Don’t buy any initiative with a funny name. Avoid tools you don’t understand. Beware of hucksters selling quick-fixes, or wielding a hammer and treating everything as a nail.
  4. Take an inventory of projects already under way. What is essential (and why)? What’s showing progress? What’s not working, or simply lurking on someone’s desk? Stuff piles up. The old suffocates the new. You can’t do everything. So agree what you’ll stop doing to make way for what’s next. And chuck out whatever you can (which probably means more than you thought!) as fast as you can.
  5. Don’t launch anything new until you’re satisfied that what was on the agenda has been dealt with or no longer matters. When you do start something, be reasonably sure you can see it through to the end. Then, stick to what you set out to do. Don’t chop and change. Your people are watching. They’re cynical and skeptical.
  6. Agree on a very short to-do list with tight timelines and clarity about who will do what. Better to do a few things well than a lot badly. Better to act fast and learn quickly than to keep the wheels spinning while you plan for perfection.
  7. Clarify how you’ll communicate what’s going to happen next—and communicate like crazy.
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  •  23/06/2012
May 272012
 

It goes without saying that leaders are driven to succeed—to do the best they can for both themselves and their organizations.

It also goes without saying that they expect their people to succeed—to do well in the jobs they’re paid for, meet and exceed targets, handle projects effectively, produce new ideas, create constructive relationships with colleagues and business partners, develop the people around them, reach their own potential, and so on.

Yet all too often, leaders set themselves and others up to fail. They “throw sand in the gears” of their organizations, by creating conditions in which under-performance is guaranteed.

That’s a hell of an indictment, so let me explain it.

For more than a decade, I’ve encouraged my clients to reduce all their strategies to a few goals and a series of 30-day action plans with specific people responsible for each result. This has four critical benefits:

  1. It forces people to break work down into “do-able” chunks, and to focus on the few things that really matter rather than the many which otherwise crowd their agendas.
  2. It puts immense pressure into an organization, as 30 days isn’t long and there’s no time for wheelspin. When it’s clear exactly what needs to happen, by when, and whose name will be called, people have to put their heads down and get moving.
  3. It enables you to see, very quickly, whether your strategy is on track or needs fine-tuning, and how the people responsible for various actions are doing. Fast feedback and accelerated learning let you deal with problems and opportunities in as close to “real-time” as possible.
  4. It enables you to quickly praise or reward people for a job well done, or guide, sanction, or replace those who don’t deliver. So the very process of driving your strategy becomes a powerful performance management process. And because success does lead to more success, celebrating some quick wins provides important motivation.

Making plans and assigning work is the easy bit. The hard part comes when you start reviewing progress. For that’s when things either get a boost or fall apart.

Every time you bring your team together, you have an opportunity to either turn them on or turn them off. The way you craft and conduct your conversations will either bring out the best in them or the worst.

Review meetings need to be both respectful and robust. So on the one hand, people must be treated decently. They must be listened to and given the sense that they are valued and their ideas count. But on the other hand, they need to know that your purpose is not to create a “social club” or win a popularity contest.

This is about work and results and progress. Everyone must know that they’re expected to deal in facts and well thought-through opinions, and that there’s zero tolerance for blaming, bluster, bullshit, or excuses.

I’ve sat through any number of these review sessions, in companies of many types. Some leaders get things right: people come well prepared, the conversation is informative and constructive, and they leave feeling positive and knowing exactly what they need to do next. But often, things break down quite quickly.

Typically, everyone pitches for the first meeting. The first few people to report back do it well. Mike, Sue, and Dumesani seem to have a grip on things and achieved what they had agreed to. And they’ve thought about what they need to do in the next 30 days. They get a “thank you” and a pat on the back. Smiles all around.

But then there’s a hiccup. Damien couldn’t do what he should have because he was still waiting for budget approval. Or a supplier had let him down. Or he’d had to deal with some emergency or other. Or he hadn’t been able to recruit a key person because the headhunters hadn’t come back to him. Or the IT guys hadn’t delivered. Or Jeff or Derek or Sam or whoever had been away for much of the month and hadn’t been available to discuss certain issues. Or…

What the leader should do when this happens is come down hard on the individual, question each of his “reasons” and make him explain why he couldn’t do something about them, demand that he take his plan for the next 30 days 100% seriously, and make it clear to everyone that such behavior is not acceptable. In other words, the “rules of the game” must be firmly established right from the get go.

What the leader actually does when she gets the ducking and diving is say, “Oh, OK. Thanks, Damien. Well, do try to sort those things out and get things moving before the next session. Now, let’s move on. Who’s next?”

In that moment, the leader has done two extremely dumb things: first, she has taught Damien that not meeting commitments is acceptable, that non-performance doesn’t matter. (And she has thanked him for letting the team down!) But even worse, she has taught the whole team the same thing. So her very first review session has set the tone for trouble.

When the next meeting comes around, one or two people don’t show up and more of them report that they haven’t done what they promised. Even fewer pitch for the third meeting and there’s a longer list of excuses. Meeting four gets called off because too many call in to say they can’t make it. Meeting five gets rescheduled a few times, but then doesn’t happen at all.

Game over!

Strategy reviews are, in effect, training sessions. You can make them work for you or against you. Clients who use my 30-day planning process say it’s the best thing they’ve ever done. The pity is that things so often start with a bang but end with a whimper. And that clever executives keep wondering why executing strategy is so hard, when it’s they who enthusiastically agree to a sensible way of working then show they didn’t really mean it.

Effective leadership requires tough love. Leaders need to show empathy, foster teamwork, and be unfailingly polite to their people. But they also need to instill discipline, enforce compliance with agreed procedures, and show courage in handling those who play fast and loose with their organization’s future.

Notions like “servant leadership, “principled leadership,” and “values-driven leadership” are all popular. However, if they’re not leavened with firmness, they cannot possibly drive performance and results. Being nice is no substitute for managing. Empowering people does not mean simply letting them loose and leaving them free to do or not do whatever they choose.

The buck stops on the leader’s desk. He owes it to himself to use the power of his position to make things happen. If he doesn’t, he’ll undermine himself because his people will know in a flash and lose respect for him.

If bad habits are allowed to creep into a business, it’s hard to get them out. Only the leader can stop them in their tracks. And strategy review sessions offer the ideal forum for doing it, because they usually involve senior people who, in turn, teach the rest.

Of course, virtually any other get-together—even those chance encounters in the passage where people share ideas or update each other  about projects—provides a similar opportunity. But the discipline, structure, and status of a 30-day review makes it special. Not to be wasted.

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May 232012
 

Every company today faces growing uncertainty and complexity. Executives are under increasing pressure. Employees are nervy, and many are not fully engaged in their work. So how do you stay competitive and keep producing results?

What you don’t need now is another complex formula. So instead, here’s a simple checklist to remind you of what’s really important and to keep you focused.

Keep it on your desk. Pin it on your wall. Share it with your team. Use it in your meetings and strategy review sessions. And if you think it’s just too simple, read it again, and ask, “Is this what I do?… Is this the way we work around here?… What must change?”

  1. Your #1 challenge as a leader is to take your people with you. So create a climate for high performance and engage them constantly in a rich, robust conversation.
  2. Accept complexity, but simplify everything you can. Cut through clutter and focus on the few things that make the most difference. You have limited resources and a lot to do, so don’t try to do everything and be everything to everybody.
  3. Know what you’re aiming for, and spell it out loud and clear and often. Make sure your entire team understands your purpose, strategy, values, and priorities. You can never communicate enough, so keep repeating yourself.
  4. Focus on your “right” customer … forget the rest. Create clear criteria for defining your “right” customer (industry, size, growth potential, reputation, buying power, ease of doing business, ability and willingness to pay, what they can teach you, etc.) Make these criteria clear to all your people. Be ruthless about customers that don’t fit—they’re a dangerous distraction and you can’t afford them.
  5. Get your “basics” right. Put “gas in your tank and air in your tyres” and do what you must to get your “engine” firing on eight cylinders, not four. Strike a balance between consistently meeting customers’ current expectations and surprising them with something new, better, or different.
  6. Relentlessly drive value up, costs down. It’s the only way to compete.
  7. Learn from everything you do, and share new insights with your whole team fast. The more you learn, and the quicker you do it, the more adaptable your company will become.
  8. Hold your course. Be boringly consistent and persistent. Don’t be tempted to zig-zag. Sustainable strategy might be an impossible dream, but you have to repeat yourself for some time to hone your performance and build key resources and capabilities.
  9. Be ready to change when you must … then do it with everything you’ve got. Gather all the information you might need. Think about what you might need to change, and how. Develop the strengths that will matter. Practice, practice, practice. And when the time comes, don’t dilly-dally—go for it!
  10. Pace yourself … when you think it’s time to make a new decision, ask, “Is this really the time? If it’s not, wait. Sometimes, doing nothing is best. In another day, week, or month, you’ll have more information and a clearer picture of what you need to deal with. And it’s quite possible the risks you see right now, or the challenges you think you need to respond to, will have come to nought.
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  •  23/05/2012
Mar 052012
 

Most companies have a strategy, but the quality of those strategies varies greatly. Not all are equally sound. A lot are utterly useless. And all too often, even the best of strategies won’t get turned into action because of organizational weaknesses.

You might wonder if strategy really is necessary in today’s environment of extreme uncertainty, roller-coaster volatility, resource constraints, and rising competitive hostility. The answer: unequivocally yes! In fact, right now, strategy matters more than ever. Precisely because the world is so hard to understand and there are so many surprises, you need a strategy in order to give you the best possible chance of defining your own future.

This is no time to be careless or vague, to bet on yesterday’s strategy taking you into the future, or to bank on your competitors being idiots. A carefully thought-through, robust strategy is essential for riding the “white waters” we’re in, and that in turn requires a systematic, disciplined strategy process. Now, more than ever, you need to subject your strategy—and the way you made it—to tough, dispassionate review.

No doubt you and your colleagues have put a lot of effort into your strategy. You’ve probably thought long and hard about the best process to use, what it should address, what you should finally say, and how you should communicate the outcome. But before you rush ahead with implementation, pause for a moment. Stand back and take another long, hard look a what you’ve decided. Use this checklist to stress-test your strategy. These 20 questions may highlight weaknesses, trigger new insights, or lead to new decisions.

One set of questions helps you evaluate your overall strategy:

  1. Is your strategy based on specific and sound assumptions?
  2. Is it based on adequate and accurate information—most importantly, about customers, competitors, your operating context, and your own capabilities?
  3. Does it address all the key issues facing your company, or have you overlooked some or skirted around the tricky ones?
  4. Are you clear about the results you want, and will it raise your chances of delivering them?
  5. Will it give you a meaningful advantage over competitors, and can you capture the value of that edge?
  6. Have you made the right trade-offs, or are you making too many compromises?
  7. Do you have what it takes to make it work—resources, capabilities, attitude, stakeholder support, etc?
  8. Will it be sufficiently hard for competitors to understand, copy, or nullify?
  9. Will important competitors worry about it, and wish they’d thought of it first?
  10. Does it lock you into a particular course, or will you be able to change direction when you need to?
  11. Is this strategy unquestionably the best you can do given your current circumstances?
  12. Does it have legs – i.e., will it give you the results you want for long enough to make it pay off?

A second set of questions looks at your chances of making your strategy work:

  1. Is your strategy simple, clear, and specific (i.e., will it be easy to explain, will it make sense, and will you be able to stay “on message”)?
  2. Does it have just a few (3-5) key goals that are unquestionably the priorities, and will achieving them get you where you want to go?
  3. Are those goals followed by (3-5) well-defined actions, and are specific individuals responsible for those actions within specified time-frames?
  4. Do you have the right people in all functions, and are they excited about your strategy and aligned behind it?
  5. Do the “pivotal people” on your team (the few who are the most critical “gears in the system”) have the skills and clout they need to make things happen?
  6. Do they have the information, resources, and support they need, and will they continue to get it?
  7. Will your organizational arrangements (structure, processes, systems, culture, incentives, etc.) support your strategy?
  8. Do you understand the risks that lie ahead, and do you have plans to deal with them?

All of these appear to be quite simple questions. But they may be tougher than you imagine. Getting to the answers may be painful, and you and your colleagues may not like them.

But remember, strategy is not just about logic, analysis, and hard decisions. It’s also a highly-charged social, political, and emotional subject. If you don’t start out with that understanding, and if you fail to confront reality while you craft your strategy, don’t expect great results. The world is just too tough for that, and it’s getting tougher.

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  •  05/03/2012