Tuesday, December 30, 2008

The Executive's New Years' Resolutions #2 & #3

Yesterday we looked at what our general leadership direction might be for 2009, given the economic chaos we've experienced with the closing of 2008. The premise was that we should not be inhibited by the unprecedented business failures, but rather take firm control of our leadership responsibilities. Today, let us take a look at building upon that with 2 more thoughts.

Resolution # 2: Let us be "Thoughtfully Fearless"

Our first reaction might be, "...isn't "thoughtfully" in congruent with "fearless"? Well, I vote no. To me, anyone who is blindly fearless, not wary of anything, and moves too quickly without knowledge, is foolish. Many of you who follow my blogs will recall that I play poker, and have been in the Main Event in the World Series. If I haven't learned it in business, I've learned it at the tables: aggressiveness can serve one well, but without knowledge, history, and analysis, it can mean a quick end.

So let's construe "thoughtfully fearless" to be one who does her homework, and also has the courage to take "calculated" risks when the upside exceeds the downside. We realistically look at things as they are (not as we wish them to be), gather & analyze the data, and then "pull the trigger". We do not fear the outcome, but rather, passionately anticipate the outcome & treat it as a learning experience. One of my favorite quotes is: "I need to teach my people to fail faster."

Resolution # 3: Admit Wrong Turns & Make Course Corrections

Having made a big issue of moving forward with courage, why should mistakes be brought up? Well, simply because I believe it takes MORE courage to admit when one is wrong than it does to make the decision in the first place. Our human nature is often the culprit. If we are in fact "thoughtfully fearless", we have put in a great deal of time and energy, not to mention expense & credibility, to convince ourselves and other to take a certain path. It is natural to defend a decision, and therefore want to stick with it.

What we must do instead is, take a step back, get sound inputs from others, and factually evaluate the outcome and new data as it presents itself. If we see clear evidence that the result is not what we anticipated, we may need to face the facts, and lead the effort to modify the program. Admitting mistakes is not a weakness unless we do not become better for the attempt. A confident, but realistically humble, leader is the one most likely to have the most loyal following.

This is my last posting before 2009; may God bless your New Year!

Monday, December 29, 2008

The Executive's List of New Year's Resolutions

As we approach 2009 as leaders of our organizations, it seems fitting that we look at our priorities for the New Year. When the economic challenges we now face, are coupled with more uncertainty than we've ever seen, our thoughtful consideration and commitment to action is needed more than ever.

As if the above is not enough motivation, there is another reality among Presidents & CEO's I see, that really seals the deal. It is far more insidious, and seems to be most compelling. It is a great reluctance to "pull the trigger" on change. It could be a high level personnel replacement, a large new piece of equipment, or rolling out a new product. Whatever the issue, it's like our shoes are stuck in cement.


What seems to have us back on our heels is that, for most of us, we have not seen in our lifetimes last quarter's financial chaos. There is much concern over what next year will look like, let alone next quarter. It can be paralyzing if we allow it.

Accordingly, let's make resolution #1 to be:

Take ownership, take charge, and take action.

When we commit ourselves to doing our homework, being involved, and involving others in a solution, good things happen. Why? Because when we take these steps, we learn & we lead. When we're tentative, our people see it and they become tentative too. When we work at it, are willing to listen and learn, so are they.

Another benefit of taking ownership is that when the unexpected happens, we're not in it alone. We will not be misinformed or behind the learning power curve. What results is an orderly action & a solution that is, not only endorsed by more of your people, but more often than not the appropriate one.

Finally, confidence is built across the board. Confidence, when it is found bottom up as well as top down, fosters courage not only in leadership, but in the rank and file as well. Confidence is a wonderful thing; it gives us the energy and intensity to be aggressive, if appropriate, and take control of our destiny. In this environment, control is good!

Tomorrow: Resolutions 2 and 3.

Friday, December 5, 2008

Ethics, Trust, and the Meaning of Christmas

AS we further immerse ourselves in the Holiday Season, it seemed fitting to me to reflect on WHO we are as business people, and HOW we go about communicating, performing, and leading in our organizations.

Whether we are Atheists, Jewish, Christian, Muslim, or another faith, who would our God say we are? Or, who would our mother say we are? Jesus said, "Let your yes be yes, and your no be no." Seems simple enough, but further scrutiny and our pride can complicate the matter.

As I was reading about communication the other day, the point was made that it all starts with trust. Think about it, without trust, can there be good communication? The answer is no. If we cannot trust what is being said, then all the eloquent wording in the world is not going to do any good. Conversely, with a great level of trust, much less can be said.

It would follow then that we should build trust to foster and prepare for good communication. I think we can agree, or at least understand the concept. Does it happen overnight? No; it takes time. The next question is when trust exists, what can undermine it? How about lies, or misrepresentations? How many does it take? Just one. It doesn't seeem fair, but that's the way it is.

Communications experts say that six different messages can be given when we speak: 1) What I actually say 2) What I mean to say 3) What you hear 4) What you think you hear 5) What you say about what I said 6) What I think about what you said about what I said. This may seem confusing at first, but when you study it, you'll find it's true.

What really will complicate it for you is, what do you think happens when I mix in even a little dishonesty into something that is already difficult? It becomes a total mess. Is there any wonder that stress and hard feelings result?

To avoid eroding that trust that we've worked so hard to build, we need to clean up four familiar weaknesses we all exhibit:

1) Telling lies. One way or another, we all have lied. It can be white or black, but we all have at least misrepresented or mistated something to avoid embarassment or criticism.
2) Broken promises. We all have failed to follow through with doing what we said we would, even if unintended or forgotten.
3) Patronization We also flatter people to get their support, avoid conflict, or to seem better in their eyes.
4) Failing to speak up. Finally, failing to speak up at critical times to either support someone when appropriate, or exhibit courage in disagreeing, is something all have blundered through.

Ethics wraps itself around all of these issues. To me, my ethics are HOW I deliver on matters of trust. Do I take the easy way out because I'm afraid of criticism, losing a raise, being admired by my co-workers, or not getting the order? We only need to look at the financial mess our great Country is in now to see how communication and trust were shattered.

We must choose to rebuild trust. This can only be accomplished by committing to the truth over time. It's hard work, sometimes embarassing or at least unpleasant, but we must commit to letting our yes be yes, and our no be no. This doesn't mean we are not sensitive to feelings, but that we are SO sensitive to others that we gift them with the truth.

What can you accomplish with statements like:
Yes, I care about what you do No, I can't accept what you're doing
No, I wasn't listening to you Yes, I'll work through this with you.
Yes, we will reward the team No, you have not earned a raise

And the final yes is: Yes it will make your God, or your mom (or both) proud!

Navigating Trhough The Perfect Storm - A Counterintuitive Approach Can Strengthen Your Emergence

The Milwaukee Small Business Times recently published (11/21) this blog, regarding actions that can be taken in tough times, such as we are experiencing now. The idea is to emerge even stronger while meeting the challenges. It's truly amazing how some of our deepest struggles can create a much stronger "us".

A few years ago, Sebastian Junger wrote the best selling novel, "The Perfect Storm", which became so popular the title is now synonymous with any incredibly harsh occurrence. I believe our current financial/economic situation qualifies.

So does Jack Welch. Referring to "Seizing the Storm", he recently wrote an article on what strategies we as executives need now to consider. Meanwhile, because I believe that some of our best opportunities are found inside of challenges, I had put together some thoughts with a similar theme.

Some of what follows is counterintuitive, but embracing at least some of the the ideas will add to your arsenal of management tools for tough times.

Increase Spending in Critical Areas:
Reducing costs is not only recommended, it is almost always mandatory. However, so many of us get caught up in cost cutting, that opportunities are lost. For example, marketing budgets, new equipment acquisition, and customer service are almost always reduced in slower times, along with everything else. These are examples of areas that can add revenue, in both the long & short run. Here, we spend money to make it.

Set Targets, and Then Allow Your Managers to Hit Them:
Leaders will be much more effective if they will simply state what is needed instead of mandating specifics. Examples might be, "Take $150,000 out of your budget", rather than "Lay off 5 FTE's"; OR "That line has to generate $50,000 more in gross profit over the next 6 months" rather than "Cancel the upgrades for the equipment". You tell them the what and the why; they tell you the how. They are so much closer to it than you, and they almost always will surprise you with their creativity.

Cut Costs, Not Good People:
I once had a CEO that at the first sign of a downturn would call an Executive Committee Meeting and mandate staff cuts. Not only did we lose good people on occasion, we also found ourselves short staffed when business picked up. The business was hurt instead of helped. Fortunately, we often were able to talk to him in terms of efficiency savings, training, or better equipment, rather than just staff reductions.

Aggressively Recruit the Best People in Your Marketplace:
Since your competitors may make the mistake of laying off competent & motivated employees, you may find good hires available only in poorer economic times. We only need to remember back three years, right here in Southeastern Wisconsin, when we had an acute shortage of even marginally competent persons. Accordingly, go get them now when they are most available. Your money will be well spent, and serve you especially well when demand rebounds.

Talk to Prospective Customers That Have Never Listened to You Before:
Customers are most receptive during challenging periods. They are more apt to respond to e-mails, phone calls, sales calls, and proposals than ever. It's in precisely these times that contracts change, efficiencies are welcomed, and relationships are cultivated. Spend time, money, and people to reach prospects.

As Jack Welch says, we must, in these periods, take our classic defensive posture, but we need to go on the offense as well. Do this and you'll weather the Perfect Storm!

Tuesday, November 4, 2008

Managing Disagreements: Avoiding Those Burned Bridges

On this election day, I am reminded to apply some of the political banter to principles we should live by in the business world. Recently I received one of those "e-mails to the world", urging me to vote a certain way, from an acquaintance.

It was filled with statements like: "Those who believe this simply aren't informed" "They haven't done their homework" And, "This is not important, but that is" Or, "You are foolish to feel this way"

What is wrong with these? How do they apply to our organizations and how we treat each other?

Suggestions:

1) Handle emotional issues privately, 1 to 1, not in front of others. An audience can increase the temptation to dig our heels in, and not really listen. The issue is not the issue when pride is at stake.

2)When people simply disagree with us, accept their position as valid to them and listen to their point before launching into why they're wrong. Why? Listening may promote learning and even enlighten one's position. It also will give you the key to reasoning with them because they see that you're trying so understand them.

3) Do not make accusations, rather simply agree that they have a point, but that it differs from yours. Make sure they know that you respect their position, even though you may not agree.

4) Understand that our differences add value to each of us if we allow them to do so. If differing points of view cause us to think, then hopefully we can collectively come up with a consensus that is stronger than either of our individual points.

5 If all else fails, agree to disagree. Respect for the other person's strong values is crucial here, especially when we must deal with each other on a consistent basis.

I hope you voted today and will respect the outcome reverencing our great Country and right to not only vote, but express our opinions.

Wednesday, October 22, 2008

Improving Performance: It's Not in the Knowing, but in the Doing

As I've stated many times, I believe that our faith should not only be paramount in our lives, but that it can be extremely helpful to our business endeavors as well. Recently, I bought Tom Holladay's book, "The Relationship Principles of Jesus". Tom is a pastor at Saddleback Church, founded by Rick Warren, whose material I have used here before. (See 2 posts on 2/21/08)

This morning, as I was reading Chapter 2, "The Attraction of Lesser Things", it rang so true in all facets of my life. So, at 6am, here I am!

From scripture, Tom insists that we must put relationships with God and then others first, before our time, before things, before work. Then comes the punch line: "'Yeah, yeah, I know that', you may be thinking. We all KNOW this. The problem is not in the knowing, but in the doing." Wow, isn't it the same with us trying to grow and get better in our businesses?

How many times do we let something far more trivial get in the way of what we should really be doing? 1) We come in early to see a troubled manager, but do our e-mail first. 2) Our assistant had a bad night with her child and sticks her head in to talk, but we keep glancing at last month's financials as she speaks. 3) Your husband calls about having to discipline his top salesperson, and you read the Wall Street Journal while listening. We've all been there, some of us (like I) more than others.

The answer to making the change is to have the discipline to change our priorities. It IS in the doing! We must begin to make different choices in our relationships, and how we actually perform and value them. The fact of the matter is that when we allow competing values, instead of being disciplined and ordering them, one will always overwhelm the other anyway. So we may as well plan what we do instead of letting it happen out of balance.

Consider this, the lesser value most always overcomes the greater. Why? Lesser values take less thought, less effort, & are less stressful. So they seem easier and draw us in. We also can get through them more quickly, so in the name of getting more done, we do them first. Lesser values don't deliver on their promise, that's why they are lesser values.

Even in the workplace, relationships are more important than tasks. Think about it. Virtually all the time, when something is absolutely crucial that you get done, isn't it accomplished through others? Your board is made up of people who can at least make your life much more difficult, and at the worst remove you. Your customers must respect & trust you before they do business with you. And, as a leader, you must lead through respect if nothing else.

Let me close with this from Tom's book: "The truth is, that whenever tasks need to be accomplished, there is the temptation to make the task you are doing more important than the people for whom you are doing the task."

You like to lead, to be in charge. Will you take charge of your relationships?

Wednesday, October 15, 2008

Getting Family-Owned Businesses Right: Ten Principles That Will Make Every One's Life Easier

I thought it might be timely to publish a list of helpful ideas for Family-Owned Businesses. since I have worked a good deal within that discipline for many years. Many of the same problems reoccur, and successes should be built on as well. Here they are:

1) Most employees do not understand the needs of the family and what it wants to get out of the business. Bringing these out, in a professional manner, is a good solution: communicate. Owners are entitled to set the goals. There shouldn't be anything to be ashamed about, and if there is, maybe it should be re-visited.

2) Similarly, many owners, particularly 2nd and 3rd generation, don't understand how their goals might be threatening to the employees. If , for example, children are to be groomed for future responsibility, that can be a great thing for the organization. At the same time, it can look like less opportunity for the average employee who wants to get ahead.

3) To maximize morale, promotions should be earned not given. Don't misunderstand, the owners have every right to promote themselves first, they just need to realize that there will be consequences in loyalty and camaraderie if they do so. Sargento does a great job with this. Lou Gentine openly states that the family member will get the nod if 2 people are very close & competing for the same position. At the same time, much is expected of the family member, and excellent performance will be rewarded in everyone.

4) There has to be a plan. So much of the time, things just happen within the family. I have seen children promoted with little or no training or preparation. Perhaps someone left the company and the hole was plugged with a family member. However, if the person is untrained, or perhaps doesn't even want the position, it can be very painful for everyone involved, especially the family member. Plans create confidence, individually, and in the company.

5) Training is a must. We've already seen how Family Owned Businesses can be misunderstood by everyone. A sound training program, for the employees as well as the family members, will put everyone on the same page. No frustration, no misunderstanding, & no disappointment; it's all out in the open. It might be disagreed with, but it still will be respected.

6) There should be a written agreement for the business entity. If this document is well designed, it can help ensure that the owners understand their obligations to each other and the organization, their duties within, and their rights. It should include things like how the business will be managed and controlled, buy-sell provisions, and how distributions will be made to the owners.

7) There needs to be a strong, documented compensation plan for the company. Job descriptions need to be created for all positions, then rated, and then pay grades established. This is a good thing for all organizations, but especially Family Owned Businesses. This is what will establish standards and how people are paid, which in turn will relate directly to the owners, if they work within the business.

8) After #7 is established, it sets the table for what the working owners will make, and eliminates the horrible morale issues that can occur if family members are paid differently. Let it be distinguished here that owners are absolutely entitled to distributions from the business, but these MUST be separate from what is earned from their work.

9) Strategic Planning, involving the owners, is very helpful. Unless the owners, especially 2nd and 3rd generation, are very well versed in the business, including the history, they should probably have more of an observer role than be on the Strategic Planning team per se. This will allow them to learn as well as buy into the process. Knowing where (and why) the company is moving in a particular direction is critical for the owners.

10) Succession Planning is critical. Because this may be an unpleasant subject, it is often delayed. If so, the consequences can be staggering. It must be laid out to allow for no misunderstanding and disputes. It needs to be done BEFORE retirement, or death, primarily to have all the players present and in good mental and physical health. To have mom or dad present at the time these decisions are made also often adds more stability to the situation.

This is not an all inclusive list by any means, but one I've found to be helpful. My hope is that you have found it so. Please feel free to add any items you see fit, in your comments below.

Tuesday, October 7, 2008

Surviving The Financial Firestorm: Ten Navigational Tools That Will Help You Emerge

With all that has gone on with our economy in the last few months, and especially in the last 2 weeks, people worry, need reassurance, and value leadership. As executives, we know that confident persons are happier & produce more than those that are stressed. Accordingly, we all are looking for tools and habits that will not only enable us to get through these times, but to do so successfully.

To that end, here are ten ideas that will help you do just that:

1) Perpetual Optimism Attitude is everything. How we lead and how consistent we are will set the tone with the organization.

2) Even Tempered Demeanor Being "cool under fire" is another trait that is contagious. If leadership is calm & confident, so will be their people.

3) Doing Your Homework Challenging times require more attention to detail. If one is able to open enough oysters, she will find a pearl.

4) Focusing On The Few Things That Are Important Trying to do too much is a common fault of we who are driven to perform. Simplify. A few critical tasks done in an excellent manner have for more impact than many things done routinely.

5) Staying Close To Your People The more stressful the times, the more important listening, coaching, and mentoring become. If they know y9u support them, they will have more courage to do what's right.

6) Keeping Discipline Paramount While we need creative thinking, we need to do it in a constructive way. The tendency of experimenting too much with new solutions can creep in the middle of times that need stability, taking money, resources, and time we don't have.

7) Celebrating Wins Catch your folks overcoming adversity & doing something well. Then publicize and reward it. All of us have challenges; those who regularly overcome them are your most valuable.

8) A Counterintuitive Budget Most executives reduce things like the marketing budget, during bad economic times. The opposite should happen. Customers make 80% of their changes during business slumps, and so, can be wooed. Look not only at personnel cuts you could make, but at key hires; more talent is available.

9) Exemplary Patience Since we are generally treated like we treat others, it is critical that we make a concerted effort to understand situations. What goes around, comes around. The use of humor is very effective here in breaking tension.

10) And Finally, "This Too Shall Pass" In the words of Og Mandino, there is a start and an end to everything. Working as a team, anything is possible.

Monday, September 22, 2008

Confronting Your CEO

In the last post, we were discussing fierce conversations, especially those upward from your reports. The main idea was to be approachable, listen, treat it as a gift, and not overreact.

What happens though when it's YOU who believes he must push back upward, and it's your CEO? In this post, we will examine some sound and saving principles that should keep you on solid ground as you do. Here is a simple list of SOME principles that may help.

1) Keep in mind that most all leaders care & want to do the right thing. They may be decisive, incisive, and even somewhat intimidating (if old school or insecure), but they're human. If you believe differently, you may have other avenues to pursue.

2) Ask yourself what she could be going through personally (family, illness, etc.) that may be changing her behavior or judgement. This may help you know how to approach her in assisting/understanding rather than confronting.

3) There is strength in numbers, be sure to check with peers to see if your concerns seem well founded to them. Be kind and non-judgemental when you do so. You need to be able to recover if you are wrong. If your analysis is supported, you will have others to help you work through it.

4) When you are actually having the "fierce conversation", use phrases like, "Here's what I see" rather than "Here's where I think you made a mistake" Be even tempered, remove the emotion, and be objective; use examples.

5) Do not get "killed" over this task. Only in matters of life, death, and ethics would losing your job be justified. Remember the adage, HOW you do it is much more important than WHAT the criticism is.

6) No action on your part is most likely not an option. More damage can be done when we expect things to change without facilitating it.

When completing the task, you may very well find that the problem can be handled and outcomes changed. You may also find that you have a new and better, more open relationship with your CEO. When you journey through a crisis with someone who cares, the relationship grows.

Who knows what great outcomes will develop when one takes a courageous stand?

Wednesday, September 10, 2008

Executives & Fierce conversations

Many of us have read the best seller by Susan Scott, "Fierce Conversations". For those of you that haven't, Fierce Conversations are communication to one another that is honest and to the point, while being professional and even caring. The idea is that growth, and even change, will result when we constructively criticize each other with the other's welfare, not necessarily ours, in mind.

This is a book I have used extensively in my work, and also with my children. They all have copies (from me :) ) , and we sometimes make reference to it as a family. As their dad, I enjoy a position of respect with them, as well as being loved as a father. This can come with a downside tho', if we don't understand the dynamics.

One of the most special things I admire about them is that they tell dad what he needs to hear, not always what he wants to hear. Of course there are times when what results is stressful, but generally, even if so, it is a growth experience. In this way, I've purposely reversed roles with them; they now have a chance to "bring up dad" and help him grow.

As a corporate executive, I similarly feel I need to question whether I am being told WHAT I want to hear or what I NEED to hear. Let's examine the implications.

It is easy for an executive to lose touch with what is going on out on the shop floor, or in the meeting rooms & offices throughout the organization. The tendency is to rely on a close group of confidants, persons whom one trusts, respects, and/or admires. If they feel the same, or worse yet are fearful of the executive, this can result in them telling her what they THINK she wants, rather than the reality.

A form of myopia, where we see things as we want them to be instead of are, can result. Morale suffers, flawed decisions are made, and results plummet.

To avoid this, the executive must be approachable, a good listener without over reacting, and one who avoids blame.

Have you rated yourself lately on these skills? Are your associates, especially your reports, comfortable with calling you on mistakes, or things that should be improved? Are you really comfortable with Fierce Conversations?

Monday, September 8, 2008

The Conclusion of "Discovering" the Value of Strategic Planning

The previous post took us through a process where we gathered Strategic Planning members and took them through an educational process to prepare them and increase the value of the final document.

We looked at the need for financial discipline through budgeting and forecasting. This post will continue the process through how effective internal communication can add incredible value by managing for improvement.

The point was made that forecasts and budgets must be done realistically. If people are more interested in pleasing others with inflated sales forecasts and overly conservative budgets, then all that results are bitter discussions later on why the projections were missed. And just like the stock market, there are consequences to missing those projections. It is not only better for the company, but better individually to now "face the music", constructively, than face the financial consequences of poor results that could have been avoided through sound management.

If there is to be advice here, however, conservatism is the rule. It is better to over achieve than under perform. As humans, we deal with good news much better than bad. Believe me, this is something that took me 30 years to learn!

Once we navigate through the communication and gain mutual understanding, then we ideally have constructed a solid foundation for discussing where we should go with the future. Do we stay similar to who we are, or do we change? Why? Do we need to secure a new category of customer? What is our competition doing? What will the marketplace look like in 5 years? Do we need new products? And most importantly, what will our customers (existing and new) need and want?

Then things will be discussed such as, do we have the necessary resources to move ahead, like people, money, equipment, and skills (core competencies)?

Finally, everyone must understand that the corporate ownership has the right to meet their objectives, especially if Family Owned. These may not always be in concert with what the Committee reached consensus on. Some discussion ahead of time here will make for better understanding during the formal process.

Once we have navigated through this "discovery" process, the soil should be fertile and prepared. Let the formal process begin!

These last 2 posts should answer many of the questions you might have had. Please feel free to post your own thoughts, or contact me with anything else you might have.

"Discovering" the Value of Strategic Planning

A recurring theme and question I often encounter is: How do we get to Strategic planning from where we are now?

There is often a concern that some of the potential team members, whether they be persons on the executive committee, recent additions to the organization, or newly promoted former middle managers, might not have the knowledge & experience to contribute effectively. As a result, they may not have confidence in it, let alone produce an effective document.

What happens then is often nothing. The challenge seems so formidable that it is never undertaken. This is almost as disappointing as writing the plan and not implementing it.

There is a comfortable and effective way to remedy this, by making it a "discovery" experience. By that I mean taking the Strategic Planning Team through a process that teaches everything from the reasoning behind it, to what it's to accomplish, crafting results desired, and investment and timing required. It also very effectively unites the members in reaching consensus for planning future corporate direction.

How is this best done? Two things that will really help are to have forecasting and budgeting in place. Surprisingly, small to medium sized companies often have grown into their current condition without that financial structure. Accordingly, step one is to have those in place. If they don't exist, install them in a non-threatening way through providing reports, reviewing each department's, and demonstrating their value to each person's success.

Sales forecasting can get complicated, but we shouldn't let it. Too often, the sales manager solicits individual forecasts without explaining why they're needed to be realistic, and then gets frustrated with the sales force when they aren't lofty enough. Because none of us like pain, the next forecast will be inflated to please management. The key point must be to make truthful forecasts. What results will then be productive discussions on how to increase sales through better understanding of the customer, funding, teamwork, and yes, even more work.

The discussion of the future next needs to be compared to the production of the past and present. If the results haven't met, or aren't projected to meet, expectations, then the understanding of why there's a shortfall should be extremely valuable.

All these things are productive in themselves, but also prepare the way for the Strategic Planning process.

In the interest of brevity, the conclusion will be in the next post.

Thursday, August 28, 2008

The "HOW" of a Sales Tune Up

The last 2 postings have addressed business & leadership issues that might very well result in taking a look at your sales operation. We also raised several questions that should be asked in preparation. This post will speak to HOW I believe it should be done.

Stated simply it needs to be a process. A process is a journey where individuals respecting each other talk candidly about what they do and how they do it. They then seek to improve its efficiency, customer satisfaction, and associate (employee)morale & pride.

To accomplish this, the organization must have a culture that allows it. If everyone simply looks out for themselves, the process bogs down and stagnates. In sales, it means that no one is more important than the customer; no one is more important than another. To use a label, we, they, it, must be a team.

Commonly found attitudes that detract from success here are: 1) Sales thinking that the world revolves around them 2) Operations thinking that the only thing that is important is keeping an efficient schedule 3) Management inadequately staffing to support what needs to be accomplished.

Instead of being self-serving one must be "customer serving" with a strong sense of ownership in supporting the corporate well-being. So many times I use the metaphor of the company being the golden goose that lays golden eggs. If we want the eggs, we must keep the goose healthy!

This is all said to drive home the point that HOW we interact with each other will determine HOW WELL we serve the customer. Accordingly, to facilitate an improvement in sales and profits, much of it initially is fostering solid communication interdepartmentally.

When this takes place, it is like being on a lake. One sees the beauty of the water, waterfowl, fish, and sun. Life seems good. But then, when we honestly communicate, we start to lower the water level. We then become aware of rocks, stumps, and other less desirable things. These are the areas that need work; they need improvement.

At this point, management really needs to be involved. Agreement on what should be addressed should be facilitated. Teams might need to be put together. coaching done, and eventually changes made. Whatever happens though, will be understood and bought into by the majority. Consensus among highly motivated associates most often results in the best outcomes.

I realize that this has been a broad brush look at, not only improving a sales force, but any area in your organization. It does require much skill, experience, and knowledge. At the same time, and I'll be consistent here, HOW you do this is incredibly important.

Good luck, and good selling!

Wednesday, August 27, 2008

Questions For Your Salesforce

Yesterday, we discussed how we might approach action to take when faced with less than satisfactory sales and profits results. We looked inward first, making sure that leadership, direction, and focus were provided. Assuming they are, we might want to review our sales operation. With this post, & the next, we will do so by reviewing some additional questions to be asked. Your answers will determine how you proceed.

Do you have a strategic plan, or at least focus on HOW you want to approach your customers? It's difficult to measure how you're doing if you don't understand what the target is.

Do you have a professionally constructed marketing plan that supports your sales effort? Too often, marketing is carelessly done, or done with little or no budget.
Those who do not include a solid marketing plan are simply fooling themselves. If they are achieving good results, they are fortunate.

Does your sales remuneration plan support your Corporate goals? Sales persons are quick to understand how they can maximize their earnings. If goals and pay are in sync, everyone has the opportunity to win.

How are sales persons recognized for top performance? Most sales persons have large egos, and we should feed them regularly. Often times this costs very little.

Are sales persons consistently mentored, coached, and managed? I find that this is sometimes not the case, simply because it may be difficult, or require time that management has not provided for.

Are there adequate training resources available to assist with learning, improving core competencies, and complementing each others' efforts? Too often, areas for improvement are identified, then left to be handled individually.

Related to the above, is there structure in place for performance improvement programs, to ensure resolution, in place. Follow-up, with a timeline, is essential.

Is there a good relationship between customer service, order processing, & operations? We cannot get the customer what they want, when they want it, at the price they want it, and make a profit, unless everyone understands why. Communication, communication, communication!

Are sales persons measured according to Corporate goals? That which is measured is where the largest effort is made.

Are they held accountable? It is absolutely amazing to me how many times mediocre results are tolerated. Sometimes it is an aversion to confrontation; it might be a lack of management; or it can be a reluctance to change. Nonetheless, the feet need to be held to the fire.

Finally, and here's an interesting one, does top management spend time in the field with customers? Too often this is left up to the sales force. Customers and sales persons alike value the time given; and management then understands first hand what the issues are.

Now that we're on the right track with asking the right questions, we can look at HOW we'll go about getting the improvement we strive for. We'll continue with that on the next posting.

Tuesday, August 26, 2008

Sales Force Tune Up?

With many company results being mixed to down this year, a common concern is, are we doing everything we can to maximize sales and profits? Although much of the time it shouldn't be, the sales organization is often the first concern. This posting, and the next, will take a look at some of the questions we should be asking ourselves as executives. What should be the PROCESS we go through to provide for success?

Look inward before looking outward. If we first look at our PLOC-ing, meaning planning, leading, organizing, and controlling, we may discover we have things to do before questioning (or worse yet, blaming) others.

Have we planned? We hopefully have a strategic plan, but if not, do we at least have FOCUS? So many times new equipment is bought before we discern if it will take us where we need to go; do our customers want and need it? Can we produce it most effectively, or with better quality, or more quickly?

Are we providing the leadership needed? To me, this means listening to the "upward" communication, instead of creating more "downward". These resulting insights can be invaluable to creating solutions for barriers to growth. Do we practice the discipline and dedication we preach? Are we approachable and positive, even when stressed?

How organized are we, is our company? Are we sensible, disciplined, and orderly? Or are we chaotic, unmeasured, and inconsistent? Are we specialized and efficient at what we do? Have you given your people the tools they need for building success? Huge questions.

Finally, are you controlled or controlling? There's a big difference. Do not misunderstand; one of the worst things we do every day is failing to hold persons accountable. This means we need to control: to follow through, assist, and facilitate individual growth to get the job done. But as I've said so many times before, it is not just what we do, but how we do it. Control when mixed generously with concern is most always accepted, internalized, and used positively. It creates respect. Respectful employees produce more, and at a higher quality level, than those without it.

Once we have completed these steps, we have earned the right to get down to the bottom of discovering what we need to do for remedies. We cannot fix something until we understand what it lacks, or what needs to be changed.

Now it's time to take a look at Sales, along with some other areas. In the next posting, we'll do just that.

Monday, August 4, 2008

Value Added and Sales Commissions

Recently a fellow PIW member asked the following question: "We currently use a Value Added formula for paying sales commissions. . . This works well for the products we produce. However, for the times when we do not have the time or capacity to produce a particular job, I am wondering how (to pay)commissions. . ."

Since this is a commonly asked question, I thought it prudent to include my response in this blog. Here it is:

"The answer is centered around why we choose to use value added in the first place. The reason it 'works well for the products we produce' is because that is what value added leads us to. If we produce more of our products in house, we grow, add more value, create more jobs, & generate more profit.

However, there's an excellent reason for outsourcing products: the customer, whom we must satisfy, wants them. So we often make a TEAM decision to buy them out of house. When we do that, we do not create more jobs, the profits and value added are less, and we might even be helping to create a future competitor. Clearly, there are pros & cons, but we sometimes choose to do it. When we do so, everyone should contribute to the effort. The company makes less money, sales gets paid less commission, production should figure out how to raise capacity and/or learn how to produce it, and management needs to educate & support these efforts.

Educating the associates on this premise and then generating a genuine TEAM attitude will then help everyone, which includes the customer, to win something."

Please add your own insights.

Saturday, August 2, 2008

"The World-Wide Market for Print 2006-2011"

PIW, Printing Industries of Wisconsin, recently published their "highlights" from the Pira International report on the future of Global Print. The findings come as no surprise to most of us, but PIW felt that we members must understand them as they impact our domestic print industry. Since I have been on the bandwagon, and on the record as agreeing, I will pass them on with comments.

The highlights are: 1) The GLOBAL print market is forecast to grow by 18% to $721 billion by 2011. 2) The fastest growth is to be in emerging countries, and will adversely affect us domestically where consolidation and reduction will continue. 3) Free trading and the growth in under developed countries will adversely impact those in developed countries. 4) New print technology will serve to keep print more competitive and will be crucial to developed countries. 5) By 2011, digital printing will have a 21% share of the market. 6) India, Russia, and Venezuela will be the fastest growing print markets.

Once more, I feel compelled to ask, what are we doing about this domestically? Where is our future? How will we compete? How are our development dollars being spent?

My fear is that it is, all too often, more of the same. Let's keep on doing what we're doing, feeling secure in little change, and hoping that we'll have time to react when the time comes. Let's not embrace and invest in digital the way we really should; we'll have time later.

Well, some of us will, and some of us won't. I want to be in the former group, not the latter. Am I a doomsday zealot? How about you?

2008 ACTS Summer Meeting

The recent ACTS Meeting in Point Clear, Alabama was one of the more successful in my memory. Now that there have been a couple of weeks to process it, I believe some thoughts here might be appropriate. Many of you are making comments from time to time, and for those of you who were there, this might be a particularly good post to contribute to. Your comments are appreciated & always add value.

Here are what I saw as the biggest pluses: 1) Increased, and deeper communication among NASTA, AAP, and BMI. AAP and BMI understand that they exist to serve NASTA, but it has not always been clear exactly what NASTA has wanted. In recent years there have been some surprises such as those having to do with embossing and the cost of textbooks. This year, especially with the increased question and answer period, we seemed to begin to break through concerns for stepping on toes, with some effective exchanges. There will be more to come, I'm sure.

2) Increased visibility, and availability, of leaders like Sue McKenzie, Woody Duncan, Jay Diskey, and Bruce Smith. These folks are, of course, at every meeting, however it was nice to see them spending a good amount of time at the receptions, and between events, talking to whomever wanted a bit of time. It is crucial that the three groups MIX and get to know one another on a more casual basis. This develops better understanding and trust which are crucial to our future success. They seemed to set the example for the rest of us.

3) The heat and humidity were not a particular plus, but since the meeting is always held in July in one of the "Adoption States", most were prepared, and got through it just fine.

4) The Grand Marriott was a nice venue, even with the expected summer weather. The setting was beautiful, the golf courses in good shape, the food excellent, and the service (although I heard one complaint) positive and effective. It would be a fun place to go in the spring or fall.

Hopefully this will add up to increased attendance, especially on the NASTA side, next summer. Whatever the case, between now and then, we hopefully have begun a period of frank and open communication that will make everyone more effective and fulfilled at what they do.

Thursday, July 17, 2008

The Future of Literacy

In this day of declining writing skills, reading scores, and leisure reading, some say that our very literacy is in danger. Certainly the contrarians seem to have valid concerns. Our young people text constantly instead of write, and do much of their communicating online. Will their generation see the demise of literacy as we have known it?

The "cup half full" folks think not. The progressives see a future of more information, using new delivery methods and a more descriptive language. Let's take a look at both of these points of view to see what we might project.

Technology means change. Change is not naturally welcomed by our human nature. One must override the fear of change meaning worse, versus simply different and potentially better.

Here's what I believe. Communication is at the very heart of who we are as people. We laugh, we cry, we are moved by it. That very aspect of our chemistry will ensure our literacy. What form it takes and how it's accomplished may be another thing. And if we are open to differences in the WAY we communicate, we should be fine. The very emergence of different languages and ways of communicating will be exciting.

Basic reading and writing will endure as will the book. It is too engrained in who we are as well as providing a wonderful delivery method that has been built into who we are for centuries.

As with most things, our literacy and how it's displayed and used will not be an all or nothing matter. It will evolve as we will with it. And it will not be boring; in fact, it could be stimulating and even fun.

Online Schools, Friend or Foe of Traditional Learning?

Online schools have grown rapidly, are now in 17 states nationally, and are gaining more and more financial support from their states. More than 600,000 children take online classes in the U.S. Some persons who have used the textbook in a traditional classroom setting are concerned. This issue is alive right here in my backyard in Milwaukee, where it has been supported by State lawmakers.

In many instances parents, who have home-schooled their children previously, have gone to online schools to supplement, or provide all of the content and teaching.

There would seem to be three issues: 1) Is online learning more effective particularly for younger children? 2) What might this mean long run for our most valuable resource of certified teachers? 3) How will it impact the textbook?

I would submit that we should first gauge any change here by how it impacts the student. Simply put, our kids are the final link to be served. Let's put them first and not our personal agendas. Secondly, we must find a way to utilize the wonderful asset we have in our career teachers. They have so much to give and possess the experience to deliver it.

Finally, the educational textbook is priceless intellectual property. It is another tremendous source of learning. We cannot and should not casually watch it erode.

Another issue working against the textbook is its weight, since online learning eliminates a good portion of that problem by not requiring the students to take home their textbooks. In one Baltimore school, students are carrying 45 pounds of books. Many have wheels but still have to get them up and down stairs. Even though there is no hard legislation as of yet on the weight of textbooks, it is a very real problem that must be addressed. Laptops, instead of books is one solution.

The real bottom line is for all of us to understand the issues, and then do the right think for the children. That must mean, however, that we take into consideration the resources of teachers and books that have served us so well in the past.

Friday, June 27, 2008

Bill Gates, PC's, and Textbooks

Since today is Bill Gates' last day of work at Microsoft, I thought it would be appropriate to make this post about him. Hopefully the challenge of Google has not run him off, but it certainly will be a huge issue with his successor.

At any rate, a few months ago, Bill went on the record, as he is wont to do, on a subject that is dear to him, and one that is dear to many of the rest of us. His prediction was that PC's will have natural interfaces that will use camera and speech recognition. The result, he predicts, will make print obsolete. As much as we printers might not like the prospect, let's examine what is behind his statement.

The foundation of his premise is the "natural user interface". This NUI will mean there will be a new interactive relationship with the user and the device. The tablet computer is an example, and where used often replaces textbooks. Voice recognition and video is also used, both ways, that is from computer to student, and from student to the computer via a special camera. Wow!

The above paragraph is my understanding of how it will work, and has me on the brink of overload with too much technical projection. Nonetheless, it seems prudent that, for our own good, we stay open to the possibilities.

On the side of "It'll at least take time", would be the whole computerization of the classroom. It is true that many districts have done wonders with getting each student their own computer. However. there are still many many more districts that aren't even close. Continuing with this line of thought, it would take several years for Bill's vision to become a reality in any volume.

Concluding with a touch of reality is a must though, and dictates that we must prepare, we must change our thinking and broaden it, and we must not believe that the future will look just like it is now.

The book is sacred to many of us, but the reality is that there are many technological threats out there that will change not only how we use it, but how it is seen, used, read, and experienced.

Thursday, June 26, 2008

The Real Definition of Courage

Several years ago, while in the midst of working for one of the few difficult people in my life, I found myself in a recurring debate over the definition of courage.

"Morrie" was a fastidious man all the way and would take issue with me doing what I perceived was appropriate, when sometimes contrary to Company policy or procedure. He stuck strongly to the rules and wanted me to, as well as insisting that I get that from my people.

Being a strong-willed person (if you're a regular reader of my blog, you're not surprised), I always felt compelled to "do the right thing". This sometimes entailed making exceptions to the rules to achieve what I perceived to be the fairest or best outcome.

The outcome could be a subjective issue to Morrie and/or me, but to the person or customer involved, the perception ruled and, in fact I maintained, became the reality. Morrie insisted that rules were made for just these situations, and that it took courage to follow them ESPECIALLY when it was tempting to make an exception.

I debated that it was easy to fall back on some inflexible rule and cop out by saying "Company policy won't let me do what you want". Furthermore, it seemed to me much more difficult to do the right thing, especially when it meant bucking the system with an unpopular exception.

To this day I believe this, teach it, and do it, even when controversial.

What are your thoughts? What is your definition? Most importantly, when faced with a sticky problem you'd rather not handle, what do you actually do?

Monday, June 16, 2008

The Rest of Getting Mentoring Right

Last post, we were outlining what makes a good mentor a great one. So if you haven't read through that, please do so and then continue on here.

In addition to genuine caring, not judging intentions, focusing on strengths, and treating persons individually, I will add four more.

Understand that mentoring is a longer haul than shorter. Neither person should expect instant results. Certainly we have every right to expect all the good things, increased confidence, courage to change, maturity, patience, as well as decisiveness. Good things most often take time, though, and trying to hurry the process will harm rather than help. Patience, patience, patience.

Did you notice the key word I sneaked in? How about process? Mentoring is a process, and that is the next important thing to remember. A process to me means there is an overall plan without a foregone conclusion. It is something better discovered rather than pursued. A process also draws on other situations, people, and things. It can become complicated, but also can provide incredible growth, if accepted.

The next requirement is the mentoree doesn't have to like this process, and in fact may dislike it, but the Mentor must enjoy it. Yes, all of us are capable of performing tasks we don't really care to, but if a mentor attempts to give of himself without at least a sense of accomplishment, it won't come across as well and fact will most likely eventually fail.

Finally, the mentor must, has to be, completely honest. Notice I didn't say "brutally honest"! One thing I always have stressed, to the folks I've had the privilege to work with, is that constructive criticism is a gift. We certainly must be caring and give our thoughts in a way that the person can accept, without mincing words. They must "get it". The watchword phrase, though, is "don't break the spirit".

Mentoring is something I dearly love, and I've been told I do it well. Those may be kind words, but for better or worse, they will be the final judge of any one's efforts: what do your people say of you?

Friday, June 13, 2008

Getting Mentoring Right

One area that has spoken to me consistently in my life has been mentoring. Early on I was most fortunate in having good people, more experienced than I, in my life. These were folks who genuinely cared about me and wanted to help me, with no personal agenda. Whether it was my meat department manager when I worked at A&P while in college, or a professor who taught me how to really study and made me like it, or my Air Force flight instructor who taught me that life is hard, they and others like them got through to me and made a difference.

A bit later on, I began my BEING a mentor. I found myself at first working with teens at church. That led to officiating sporting events, then becoming a coach. Before I knew it I was a high school head soccer coach, while I pursued my business career. Mentoring was a joy from the other end, as I found myself making a difference in others' lives.

Now I've come full circle where again I am mentored through a wonderful priest and friend, but also work with young CEO's and Presidents helping them through the challenges, doubts and joys with their customers, families, and businesses.

After all this I feel qualified to write about what I think makes a good mentor. Here goes.

The mentor must have a genuine and deep interest in the well being of the mentoree. Simply put, she should care. We've all seen people who have something to gain or lose, and steer us toward that outcome while pretending to care more about us. Most often, we see right through it, and they have lost our trust forever. I've always been most impressed when I see people who will actually be negatively impacted with a change, but support it when they see a greater good. Wow! That's maturity.

Do not judge intentions. It's not only proper to judge performance, we are required to do so. At the same time, it's a losing proposition to try to know what's going on inside of an individual. Good mentors assume that the heart is good until the performance shows that there's a disconnect. Be on their side; more is gained by treating them a bit better than they may deserve, than a bit worse.

Focus on strengths; spend less time on weaknesses. (See my 1/30/08 post, The Healthy Lawn). Don't ever underestimate the power of positive feedback. Remember the Goethe quote, "If you treat an individual as if he were what he ought to be and could be, he will become what he ought to be and could be."

Individualize your mentoring to the person. Remember that we are all not only a product of our experiences and upbringing, but we are also part of our generation, our community, and values. Understand these and work within them, and not according to how you might see them. The mentor strives to improve the mentoree on her ground, not make her as he is.

We will continue this rather robust topic in the next blog; remember, I promised with my first posting that I would be consistently brief!

More Sound Advice From Al McGuire

In an earlier blog (see 1/28/08 posting) I related some principles from knowing Al McGuire, the deceased but not forgotten, Marquette basketball coach and broadcaster. Just the other day I was reminded of him in 2 ways. The first was from one of my consulting associates, Rick Maurer, stating that we must improve our customer performance 25% just to stay in the game. The second was from a synopsis of the NBA Finals, where so many of the athletes said their simple goal EACH day was to get better. Al McGuire demanded it.

Interesting premise. Aren't we maintaining quality if we work hard and keep on doing what we've experienced success with yesterday? I think not. When we paddle a canoe up stream, if we stop paddling, we go backwards. The problem is that our competition is working as hard (maybe even harder) to win. That means that after 34 years in the business world, I have to still get up each day and find a way to grow, to challenge myself, and to find things that add value to others.

I am absolutely flabbergasted at the rate of technological innovation we're experiencing now. The speed of the game has increased geometrically. That's what you constantly hear from rookies in the NBA: "The speed of the game is so much faster than college. I need to learn the game better so that I can simply react without thinking and make the play."

In the business world, when we are situationaly challenged, we use our current knowledge & experience to determine the appropriate response. The learning must already be absorbed by then, to be able to apply and come up with the right thing to do. What used to be something that could wait a week now happens overnight, later today, or even immediately. If we haven't improved from the last experience, we may not get it right.

How are you growing and getting better each day? Compared to last year, and compared to your competitors, have you stayed the same, gotten better, or back slid?

Monday, April 28, 2008

A New Entry into e-Books

Last month, a new player potentially emerged in the e-book arena. It was a surprise to me, perhaps not to all of you, but Discovery, a vast organization in the communications arena, which includes the Discovery Channel, was awarded a patent on March 6th.

The Patent Office stated that it was an invention for, "a new way to distribute books and other contextual information to bookstores, libraries and consumers." This implies a similar "readership" as other electronic books such as Amazon's Kindle and the Sony e-Book.

However, Discovery's approach is a bit different; it claims to be more of an electronic library. Yes it would use a portable "electronic viewer" and a portable "book-shaped reading device", but it uses a video signal format that will allow both sending and receiving at the same time. Thus, they promise to "revolutionize the distribution of books".

The question then becomes, are they more interested in the transport of files rather than the actual reading (in a 1 on 1 sense) of the document? Looking at who they are, it may be the case. On the other hand is distribution the key to a revenue stream, or is the reading device?

This is all very interesting and worth watching.

Note: Please see my previous postings on the Kindle dated February 7th, and February 13th.

Strategic Planning - Friend or Foe?

My previous article concluded with the importance of strategic planning and a promise to explore it further. For those of us who study strategic planning, the merits or lack thereof, become pretty apparent. When not approached in a committed and disciplined fashion, it can be ineffective and somewhat hypothetical. When lack of follow up is added to the mix, it becomes an outright waste of time & money.

How can this be avoided? How can we use the PROCESS to ensure success?

In this day and age, we like lists; so here are mine:

1) Commitment must come from the top
2) Buy-in/understanding from the management team is crucial
3) It is a PROCESS through which direction is discovered, not mandated
4) The process should be taught, learned, and internalized
5) Communication should be candid, non-threatening, and insightful
6) It takes time
7) Findings should be carefully documented
8) Time lines are created
9) Follow up is not an option
10) Evaluation is frequent and thorough

Too often steps are skipped in our haste to force results. Patience, monitored by the time line and results, offsets this temptation.

Finally, there are 4 things to consider about your business, as part of the process: 1) Your core competencies 2) Your equipment/capabilities 3) Your products 4) Your customers. Simply put, strategic planning is an evaluation PROCESS considering these 4 things and how they interact in the atmosphere of the 10 principles above.

Thursday, April 24, 2008

Is Your Growth Random, or Planned & Focused?

The most common business challenge I find when consulting in the print arena is that of attempting to be all things to all people. Certainly the strategy of one stop shopping is a sound one, but too often it may result in a scattered approach that waters down service AND profits.

When most businesses grow to where they are respected, a force in their niche, and profitable, it is not random good fortune. Most likely they found something their customers valued and needed, developed core competencies to provide it, and then streamlined the process to maximize return. This takes strategy, planning, training, commitment, and time.

One of two things usually happens next: 1) Complacency sets in 2) We expand helter skelter. No good leader wants stagnancy, so the usual response is to attempt growth, usually through either of two approaches. We look for additional products to produce (whether the customers want/need them or not) on existing equipment, or we look for a magic bullet product/service that complements our existing operation.
Let's look at this.

Although either of the two above approaches can work, the odds are against it. What really needs to happen is a third alternative: Strategic Planning. Many of us would agree, but why then does it only happen about 20% of the time?

First of all, several people (including myself) are doers rather than planners. Planning takes time, money, and thought. Many strong leaders would rather get at it, and go by their gut. It can seem quicker, less costly, and it certainly (for me) is more fun. We must however, resist the temptation. Why?

I would submit that we forget what got us there. A new venture, plant, or division is a large undertaking and we usually approach those kind of challenges with a systematic approach. We learn about the need; we brainstorm how to satisfy it; we put together a focused product or service; and we figure out how to build/provide it. Most of the time, with a passion!

Why then don't we continue that PROCESS? Forgetting what got us there could mean that we think we have all the answers, or that we can take shortcuts and still get there. Both of these attitudes are problematic.

Strategic Planning avoids these pitfalls, and makes the journey a more objective one, rather than simply following our gut. In the next 2 articles, we will take a look at what Strategic Planning is, and then how we arrive at that most important destination: focus.

Wednesday, April 16, 2008

Rules of Negotiation

As a member of TEC/EA, I have access to several talented speakers and writers. Recently I came across an article on negotiation by Douglas Gilliss that was simple and yet profound. I'd like to carry what he said a bit further for today's post. Gilliss maintains that there are 5 rules: I will comment on them, and add a few more.

They are: 1) Don't negotiate against yourself. This means giving away services or things (free shipping or, we'll paint the upstairs bedrooms) without knowing if the other party cares about them.

My first add: 6) Do your homework. So many times we enter a deal hurriedly without learning what the others want from the transaction. This is a key point; how can we give and take effectively without knowing what they REALLY want? Use the Internet, know how their business is going, talk to your broker.

2) Offer a choice. Excellent point, and hopefully of two positives. It also gives the other person more of a feeling of control.

3) Never prove the other person wrong. Again, basic human dynamics. We risk winning the point and losing the deal.

4) The never, never rule. Here are more fundamentals; don't ever give something up without getting something in return. He makes a good point that when things are traded, they should be equal in value. And I would add, not emotionally based.

This inspires my second add: 7) Never, never let the other party "know". What you value most, what you are emotionally tied to, or what your bottom line is. are all things you may be willing to give concessions to get. If the other party knows they will play you like a fiddle to get overcompensated for them.

5) The business you turn down determines your bottom line profits. This means walking away. It is an extremely powerful action, and can be so without being caustic, especially when done in a matter of fact way. When you say, in essence, this has gone too far for me to realize the minimum I need to have, they see you beyond your bottom line. The next move is theirs.

I will leave you with my final, and probably most important add: 8) Determine the personality style of the other party. If she is a headline person, she will not want data and details. If he is a contrarian, he will see the downside in everything. If he is reserved, he won't appreciate your demonstrative outbursts. This is basic sales stuff, but nowhere is it more crucial to use than in negotiating. Know your audience and give it to them the way they want it. They'll be more comfortable with you, which usually means a good outcome.

Good luck and good negotiating!

Thursday, April 10, 2008

Online Access To Course Material

An interesting addition is growing to the list of threats to the printed book. It is not digital books, or digitally printed books, but rather online material. Supplemental content has been available in the Higher Education market for many years now, but it is gaining increasing use in the high school market, and even increasing in the elementary segment. In many instances, the entire textbook is posted, although not to replace the printed book, but to complement it.

This is increasing due to the cost of the printed book, often to avoid having multiple copies, and to have available at home (or at school) when the hard copy is left somewhere else. In the case of supplemental material, it allows homework to be done with more information, more readily available.

Despite the economic and convenience benefits to the schools and students, and surprisingly enough, there are many disadvantages openly offered: 1) Some students don't have computers at home 2) Parents who help their children with homework may not be computer literate & therefore prefer the textbook 3) Virtually everyone agrees that screens are more difficult to read than books 4)Books can be more comfortably read than a computer from an ergonomic point of view 5) There are temptations with video games and other sites when on the computer 6)There seems to be an agreement that administrators and teachers will take several years to get more comfortable with online content versus the printed book.

This angle does make the debate that much more involved from all points of view. The most prudent thing we can do is to keep listening & observing, while being sensitive to the issues, our students, and the importance of the book itself.

In Case You haven't Noticed . . .

Once more, I feel compelled to write about the future of digital print in the general market, as well as in the book industry. PIA/GATF has put out some helpful information this year, which we would do well to internalize.

In their recent "Focus on the Future", a front page article began with, "Just in case anyone might still be wondering . . . digital printing is here to stay." Why do I think, then, that many of us ARE still wondering, or, like the electronic book, hoping, that it all goes away?

In an article by Andrew Fetherman, he quotes Gilles Biscos of Interquest who says overall digital print volume will grow 20-30% annually. We might say OK, it won't be in books, but Gilles says digital book print will grow annually by 26%. Yes, it is a small number now, but at 26% per year, it won't take long to become a big one.

We know publishers are being squeezed from all directions - their owners, their suppliers, and their customers. Yet it is amazing to some of us how stringently they're fighting back. They want to lower inventory, reduce the risk of obsolescence, pay less, improve title longevity, and have product faster. These wants/needs play directly into digital print.

Meanwhile, the digital industry continues to improve its offerings in quality and workflows. Color is better, the front end more streamlined, proofing is easier, and schedules are completed in less and less time. Additionally, web-to-print solutions are being promoted by the Digital Print Council (DPC).

This all adds up to our future looking different, much different. It very well could be so different some of us may not recognize it at all.

Wednesday, April 2, 2008

"Conflict" Resolution

Yesterday, after attending a seminar given by Edgar Papke, I wrote about preventing criticism from degenerating into "conflict". I differentiated the word from a suggestion for improvement or a disagreement, rather regarding the word as a stressful situation gone bad. This post addresses how to resolve conflict once it does get that far. As yesterday, I acknowledge Edgar's contribution.

Edgar asserts that we are one of three kinds of people: We are either driven by doing the right things, a win-lose mentality, or feeling that we belong. This is an interesting insight when viewed with what are generally the four personality profiles of dominance/directness, interpersonal/interactive, amiable/consistent, and pleaser/conscientious touted by Myers/Briggs, DISC, AVA or Drake P3, as examples. These 3 kinds of people will operate within their 4 personality styles.

The authenticity-oriented person who needs to be true to themselves as a top value, within the 4 personality types, will have to "do the right thing" when resolving conflict. They want a structure that is ideal centered, and empowers teams. They will be motivated by good intentions, openness, and affection.

The competitive expertise-driven person, when faced with conflict wants to win; they always believe their way is best. They want structure that is objective, competency-focused, and functional. Their key motivators are individual achievement, competency, and to be in control.

The inclusion-oriented person must be one of the group, be involved, and build consensus. Their desired structure is cross-functional, personal, and done through groups, not individuals. What motivates them is their accountability to team members, their importance to the team, and to be doing something significant.

Why is this important to know? First, we must know ourselves and do what we do best ("play the game in our home court"-see my earlier blog). Secondly, we must know what other people want, and how they resolve stressful situations, which will put us closer to resolution. Thirdly, knowledge builds confidence and patience. We will have the energy to get through it successfully.

Having written all this, it comes down to caring and doing the little things necessary to take care of our people, a common theme of my blogs. Good Luck!

From Conflict to Opportuinty

Yesterday, I had the good fortune to participate in a TEC sponsored seminar on conflict resolution for leaders. Edgar Papke, a well known speaker, writer, and human dynamics expert was our facilitator. Today's posting is a result of his inspiration, so you can either credit, or blame him!

Where I'd like to start is with his initial premise that conflict is good. As we think about it, we realize that little gets done without some level of stress being present, otherwise why would we do anything differently? So, certainly, if improvements result from stress & the resultant change, it's positive.

Before we blindly embrace this "conflict" word, however, let's look a bit closer. I would suggest that differing values, stress, & even disagreement are positive. The question is; should we let it get to conflict? Perhaps I'm reading too much into the word, but I'm thinking that conflict is disagreement gone bad, or at least, not shared & discussed.

I've always told my clients to teach and to treat contrarians, differing opinions, or criticism positively, as a gift, just as they might a compliment. Opposing points of view are a chance to get it right, or get better. Without the suggestion, without the stress, without someone else taking a chance, nothing happens. I'm sure that this was Edgar's point.

The interchange only degrades when either person injects negative connotations, such as aggressiveness, emotion, sarcasm, or judgement, into the discussion. Several things can then happen with either person, such as withdrawal, anger, or defensiveness. My point of this blog is that we need to take leadership and stop it there, before it turns to conflict, and a more difficult challenge to handle.

We as leaders and managers bear the brunt of the responsibility to give and take it positively. How? Well, first of all we treat it with a high level of importance. So we handle it now, or tell them when we will. Secondly, we listen carefully and without interrupting, even when painful. Thirdly, we clarify, and repeat back without judging. If we can pull this much off, we are well on our way to mining the benefits without the conflict. What do you think?

Tomorrow, more on the actual "conflict" resolution.

Tuesday, March 25, 2008

Setting the Stage

Rarely does another consultant's newsletter or blog strike me enough to foster a response. It isn't that I'm better than they, they're simply not my target. There is much out there that can teach however, so I keep up weekly, if not daily, with some of them. Rick Maurer is one that puts out many worthwhile ideas on change, and today he had an interesting post.

On his "The Right Frame of Mind", he made the point that puting participants in the proper mental state before important events was critical. Sales meetings, creative problem solving sessions, or launching big changes would be examples. Go to Rick Maurer.com.

I responded to his blog by saying that I had been doing this for "decades" (I'm old) and agreed wholeheartedly. I always would bring folks in the night before, or even the afternoon before to relax, play golf, or maybe go sailing. Especially when the participants didn't know each other, it gave them a chance to find similarities in each other, relax, and perhaps even create a bit of trust. It is a proven fact that we perform better when rested, relaxed, and in an atmosphere of support.

Rick's article even suggested that we might look into fostering noble attitudes that would be even more team, rather than self, oriented. Interesting point, but we, as responsible people, would not want to manipulate, so we would be obligated to tell them what we were doing. That said, most would probably consent to be a part of something more lofty.

If we agree that preparation is the key to performance, then we should commit to doing this. How often, in the name of saving time or money have we rushed into something important only to miss where our target audience was? Setting the stage for your folks, and making the ground fertile is simply good sense & good business. Care enough about them to take the time.

Monday, March 24, 2008

March Madness & Developing Your Team

Last week the NCAA Basketball Tournament was in full swing. After filling out my brackets (which were summarily crushed), I began preparing to start a client sales force project. The goal was to train and develop new hires, & assimilate them into the team, thereby avoiding costly turnovers.

What does "bracketology" have to do with developing people? First of all, it takes preparation, practice, and time.

Let's look at preparation. Recruiting is huge in both arenas. Needs must be defined, such as job description, position, & skills. Scouting and interviewing should be carefully accomplished to determine if the person possesses the skills and competencies. One must be able then to attract & "sign' the prospect. The preparation your staff undergoes is crucial to success. They attend to the basics: drills, scouting opponents & customers, and even the appropriate scheduling and travel.

Practice, practice, practice! We absolutely play how we practice. Basketball teams use practice to repeatedly and indelibly etch automatic responses into their routine. Sales teams role play, attend regular sales meetings, and are required to complete their training programs, which condition them on how to handle difficult customer demands.

Time (and patience) may be the most important ingredient. My client adamantly contends that it takes a year and a half to make a new hire a part of his sales force, with a reasonable assurance they will be successful. I agree.

When I began selling 34 years ago, I finished my first partial year (10 mos.)at 60% of quota. My next 8 months, had me at 76%, but I ended that year, 3 more months, at 130%. So it took me, not 18 but, 20 months! I almost didn't have the patience to stay with it.

In basketball, you only have to look at Kentucky to see what patience can achieve. They started the season miserably at 6-7, lost players to injury, but followed their leadership. They then went 12-4 in league play, making the NCAA field. They lost their first game, but took an excellent Marquette team to the last 10 seconds.

What can we learn from this? 1) We recruit and hire only the very best. 2) Next they are provided a thorough and professional training program. 3) We commit to their success, and expect much of them. 4) They are given time and encouragement (my client says we "nurture" them).

How are you developing your team? Do you expect them to win? Are you providing the time, training program, and patience to succeed?

Wednesday, March 19, 2008

Eight Words That Define a Great Leader

Recently, I was working with a client on recruiting superstars. You might ask how, and under what circumstances, were we hiring only superstars?

Well, I've said it before, I don't believe in settling for the "tallest pygmy". Those two words were used by a former mentor a long time ago when he thought we were "settling" for an average person instead of a great one.

My current client, when we were looking for that terrific hire, said he wanted a leader; managers work on tasks, leaders focus on people. Hmmm, nice observation. He likes to ask of the applicant, give me eight words that define a great leader? Think about it; excellent request.

We then exchanged each of our lists. His were: motivation, confidence, vision, experience, character, optimism, energy, and empowerment. Mine were: integrity, empathy, passion, courage, energy, resiliency, listening, and vision.

Isn't it interesting that only 3 of ours were the same? They were vision, character/integrity, and energy. After some discussion, we decided that it was not only OK for each of our lists to be different, it was appropriate. Why? Well, we are all made differently; no two of us are alike. Accordingly, we have varying strengths and weaknesses. It would make sense that we would value traits that helped us be all that we could be, given the "hand" that we're dealt.

Certainly there are absolutes, but we tend to value more that which is relatively weaker in us, and similarly think less of that which is strong. I believe that makes sense. The challenge for each of us is to know ourselves, understand what is required of us by our organizations and people, and then set goals to achieve it.

What are your 8 words? Why did you choose them? Are you there yet; will you ever be? If you wish, post your comments accordingly.

Tuesday, March 11, 2008

Yes, this IS brain surgery!

A blog is a useful thing, not only because we can "air out" our thoughts, but also share unique experiences, even difficult ones. I believe that when we go through challenging times, we can use them to grow. Stress is often the mother of change.

This year is my tenth anniversary of major brain surgery. In the spring of 1998, I developed a pineal region (base of the brain) cyst. I was in intensive care for three weeks, having three major surgeries. They entered my head five different places to remove the benign cyst, and to insert, first a temporary, then a permanent shunt.

My recovery was a huge surprise, and rather devastating. I had to relearn not only much of the mental processes (expected), but many of the physical ones as well (not expected). Walking was difficult and stairs were initially out of the question. I couldn't even stand on one leg! It was amazing to me then how trauma to the brain could affect me physically.

I was blesssed with incredibly terrific doctors & nurses, people at work, friends and family. I recovered fully, but it took a full year to get back to normal physically. Mentally, it took 3 to 6 months.

As I look back, this was a major wake up call that I choose to basically ignore. After all, I was successful, had a good life, and was in the process of turning around the sales & marketing in my company. The surgery was just another obstacle that I would overcome. And yes, I did overcome it, but it would have been nice to do it with an extra dose of humility. Instead, I became all the more confident (or arrogant if you prefer).

I suspect most of you reading this are intelligent, driven, and successful business people. So am I. What I have come to learn, however, is that we only get better when we give much of the credit to others. We need to thank our maker for the talents we use, our team for supporting us, and our families for loving us.

What kind of a leader are you? Who receives the credit for the "win"? What will your children say about you when they're grown?

Monday, March 10, 2008

Protecting Each Other's Soft Spots

This past weekend, I had the privilege of visiting my sister, Judy, in Michigan. She and her husband value our relationship, and most of our time together is spent around the kitchen table talking of our childhood, families. and values. As we were discussing how we have dealt with others in certain sensitive situations, she reminded me of something I shared with her a few years ago. On the way home, Wendy & I decided it would be an excellent blog topic. So Judy will have to take the credit (or blame) for the following!

It involves being aware of other's strengths & weaknesses. When you work next to, or with, a team of people for an extended period of time, you get to know them pretty well. They might even have been chosen based on a certain competency or profile. Certainly our spouses, significant others, or best friends are known even more intimately. How we treat them based on this knowledge (or judgement) of them is critical.

The point is often made that it isn't just WHAT someone does, it's HOW they do it. When we see another questioning or challenging a team member, it should ideally be regarded as a gift. It is, however, sometimes difficult for the team member to see it this way, especially if it is presented to them in a caustic, or even partially nonconstructive way. But it is a gift; only part of the story may be understood, the stated facts may be questionable, and/or the team may be on the brink of a serious error.

As a third party, we can help the process and facilitate a good outcome. If the team member has a blind or weak spot, we, knowing them well, can help compensate. We can, in essence, protect their soft (weaker)spots.

Here are examples: 1) Jean is very bright, excellent with detail, and always sees the upside in opportunities. She is also impatient and intolerant of emotions. Paul is a contrarian; he sees the downside in everything, is passionate, and outspoken. In a budgeting meeting, Jean presents her plan for needed cuts. Paul jumps in with some valid questions, but they are presented poorly. Understanding the dynamics, you can step in to help each of them do what they do best, respect each other, and come to consensus. The truth is, you need them both. Left to themselves, they may not get there, at least until they understand each of their roles.

2) You are at a cocktail party. Your fiance', Don, is talking with an investment banker, Rich. The topic, as turned by Rich, is now on ridiculing his neighbor's gay daughter. Since rich has a gay son, you know he will not appreciate the point of view, so you join them and masterfully turn the talk to your upcoming ski trip to The Grand Tetons.

You may think, at this point, that I am suggesting you fight other people's battles; I'm not. You are simply stepping in to do something you can do better than someone else. Ideally, we surround ourselves with others who care about, and will do the same for, us. You'll make many friends by looking out for them. We shall reap what we sow.

Friday, February 29, 2008

Fifth grader asks, where are my textbooks?

At a recent Pennsylvania school meeting involving parents, teachers, students and administrators, a 5th grader stood up and asked why their school didn't have enough textbooks. You and I would probably guess it was a funding problem, but the school district was actually spending more than they would for textbooks, a lot more.

Their science and health programs were using handouts called modules. When asked why, the administer stated that the text books were often outdated by the time they reached the schools.

Modules are more current, and offer the teacher more flexibility to more effectively instruct. Hence they are deemed worth the increased cost that may approach twice the cost of the textbooks. To be fair, additional ancillary materials are often included, but it would seem that the whole operation of gathering, writing, editing, printing, and assembling the program must be shortened to ensure a timely learning process.

What is our lesson to be learned? Obviously to shorten the process. We must, as an industry of publishers and printers, take a look at our time to market. We must know our ultimate "customers": the teachers and school districts, and provide them what they want when they need it.

Our alternative will be to grumble and complain, and wonder why we're not getting the business we forecasted. Or, we may blame electronic textbooks or digital printing, but we will miss the real point: we aren't listening.

Wednesday, February 27, 2008

Twilight of the Books

Late last year, the above article appeared in The New Yorker magazine with the sub-title "What will life be like if people stop reading?" If you missed it earlier, it would still be a good read due to the large amount of data cited. Gallup, the Census Bureau, the National Endowment for the Arts (NEA), the Book Study Group (BISG), Department of Labor, Department of Education, and McLuhan are among the references utilized.

It is nicely written with not only a fondness for the book, but a real understanding of the reasons we read. What is alarming is that during the last 50+ years, reading in America has experienced a real decline despite the way in which we measure it. It has been not only television and video games, but our very own culture. Poor reading skills correlate heavily with lack of employment, lower wages, and fewer opportunities for advancement.

We book manufacturers know this. The BISG estimates that sales of books per person fell 5% in 2001-2006. The Department of Labor says that the dollars sold per year fell 2%/year from 1995 to 2005. Reading scores are also declining which is even more disturbing as we look forward.

Enough statistics; what's our challenge? We have heretofore regarded (including yours truly) technology as the main culprit. That may not be the only demon lurking. An insidious cultural change involving "viewing" information (such as through movies, TV, computers, and video games) rather than "reading" information could change how we think, process, and act.

Speaking of acting, what should be our response as ones who make and love the book? We must support AAP (Association of American Publishers) in their "Get Caught Reading" programs, and others like them; we must support our local organizations in teaching reading to the underprivileged; we must vigorously pursue technological improvements to reduce the cost, and therefore make the book more available; and we should be willing to change ourselves and the way we look at things, and do them. Why? Because it is the right thing. . . . and the status quo will kill us.

Thursday, February 21, 2008

Purpose Driven Trust

Today we continue from the Small Groups Seminar at Saddleback Church, home of Rick Warren. As stated yesterday, Rick is not only a skilled pastor and preacher, but a brilliant business person and coach; most believe he could be CEO of a Fortune 100 Company. The point is that we can learn much for our businesses by evaluating his spiritual principles.

Today was all about trust. Most of us would acknowledge the importance of trust in our marriage, friendships, and spiritual lives, but how critical is it in business? In my younger years, one of my favorite sayings was, "Trust everybody, but cut the cards." My philosophy was to be overtly trusting, but not naive. This is not a bad approach, but I have mellowed a bit more since then, and I believe Rick would endorse it in a business sense.

The moderated position allows for receiving back what is sent out. If we treat others with trust, then we will be trusted more. What goes around comes around. We are also emotional animals, even the most type A personality. We are human and we care; we care certainly about ourselves, friends and family, but also to a degree, others.

This is where leadership, and maturity come in. When we make a decision to trust, it becomes contagious. It becomes contagious WITHIN our organization, as well as outside of it, and spreads to customers as well as suppliers. Just as trusting more increases the level of sharing in a small church group setting, it similarly deepens relationships in business. This working together in a spirit of trust creates real synergy. Profits even increase!

When we see the good in each other instead of the faults (remember the healthy lawn), we release the uniqueness and creativity of each person. Great leaders uncover and reveal the potential they see in each member of the team.

In your next bulletin or newsletter, do a simple survey. Ask your people to what degree they feel trusted. If it's at a lower level than you'd like, guess who's responsible? In a small church group, it is the leader. In your business, it's no different. The outcome can be changed; it's up to you.

Business Principles From Rick Warren

Many of you will recognize Rick Warren's name as the author of The Purpose Driven Life, and the founder & pastor of Saddleback Church in Orange County, California. After I first read the book 4 years ago, I became increasingly interested in the man, his values, and what he had accomplished.

Last November, while attending a BMI Meeting in Southern California, I made it a point to go to a service at Saddleback, and to meet and talk with Rick. What I saw and felt, was not only an incredible spiritual experience, but a well oiled machine that Peter Drucker would envy. Rick, in addition to being one of the most humble, "successful" people I have ever met, is a wonderful marketeer, coach, and manager.

This week, I am attending the Small Groups Seminar at Saddleback. There are several hundred people here from 41 states and 16 countries learning how to lead their churches in sharing their faith, trust, and to grow together as Christians. The content is solid and has so many lessons, business & personal, as well as spiritual, that I decided to write my blogs this week on the conference.

Since this is a business blog, I will not comment as much on the spiritual as on the business lessons to be learned. This will no doubt disappoint Rick, but you and he should know that all you need to do is ask me about my faith, and I will be happy to share it with you!

OK, what have we learned so far? The biggest point is that growth is not random. It is planned. It is a process. It starts with a vision and a mission. A vision of the mission is a projection into the future by the brain, which then blends it with emotion, heart and compassion.

But how we do what we do is critical. A list of values is therefore developed to evaluate how we conduct ourselves. Things such as risk taking, diversity, teamwork, authenticity, and humor are examples. When these interact with the blended vision, the conscience is activated.

Balance is most important. No one, or no one thing, should occupy most of the time (in business meetings or when sharing one's faith). Positive growth only occurs in a healthy, maturing, and balanced way. If steps is this process are circumvented, then poor outcomes result and the consequences must be paid.

An interesting point was made that plants don't bear fruit until they are mature. Maturation often involves struggles. The tomato plants in my garden won't blossom and bear fruit until they've experienced growth, probably some stress, and mature. The Northern Spy apple tree doesn't bear apples until it is 16 years old!

We don't bear fruit until we grow as people. Babies first walk, and then they learn to talk. Then adolescence and puberty kick in. Wow! As much as we may want to rush it, all of us must go through the process.

How mature are you & your people in the workplace? How much and what kind of fruit are you bearing?

Stay tuned; more tomorrow.