Archive for 2011

Resilience is a Group Exercise

Friday, March 4, 2011 by:David Zahn
Comment
Comments
|
|

Every business owner has heard the mantra that there is nothing constant but change itself.  A quick review of the last two decades points out one very salient example; in the 1990′s, books were sold in Mass Merchandising stores (Kmart, Wal-mart, and others).  That entire department of products then became the domain of book retailers like, Borders, Barnes & Noble, Books-A-Million, etc.  Within the last month, Borders has declared bankruptcy. 

 Another example can be found in the movie rental business.  Remember a time when movies were only available in theaters? Then, Blockbuster created a business model that allowed people to watch movies at home after a time of theater release.  In short order, there seemed to be one of their retail stores selling or renting videos in every town.  Then, cable television included movies for rental through their service, online downloads, Redbox kiosks, and Netflix allowed for immediate or more convenient forms of movie watching.  Blockbuster is now viewed as irrelevant and has closed the majority of their stores.  Businesses that are not able to react to the fast-moving changes and surprises in the marketplace are quickly passed by and either fail, or are significantly compromised.

Expect Surprises and Be Reslient

Harvard’s Rosabeth Moss Kanter has five lessons to pass on to business owners that are worth heeding.  Of the most important points made by Kanter, the recognition that surprise and change are the new norma is the one worth focusing on for both businesses and individuals. Therefore, the resilience for individuals is the new skill. By definition, resilience is the ability to bounce back successfully when facing stressful or even traumatic experiences.

According to Kanter, “experience suggests that most of us are not very reliable at predicting how we’ll behave when facing difficult situations.”  For some, that may mean how to deal with Divorce, for others it may mean the loss of a major client or perhaps having to close an office or store location.  Those that have undergone a significant life-altering event will often feel that they were naive to think that they could continue forward without addressing the impact of the change.  One commentator  said upon his own experience with a spouse’s Alzheimer’s Disease, “I can tell you now that I should have multiplied my expectations by 8 to 10. My training in stress management didn’t improve my predictive ability, although it was a great help in managing much of the stress.”

The Right Stuff

When looking within ourselves, each individual will have to determine if they have within themselves the ability to remain; resolute, tenacious, creative, opportunistic, and focused enough to stay competitive in the face of so many challenges.  In short, do we have the “right stuff” or are the forces that seemingly conspire against us just too much, the hills too steep, and the rivers too deep.

One’s attitude is often the giverning factor in how one approaches challenges (those identified and unforeseen). Resilience is not a matter of personality, genes or even the nature of our stresses and traumas. Rather, it can be viewed as each negative event a person faces leads to a coping attempt.  That event forces each of us to introspectively assess own capabilities,and evaluate our network of support (personal and professional). By determining just how substantial or reliable one’s resources are, a more insightful determination can be made about one’s ability to address change and coping with it.

WARNING

However, there is a practical limit that exists. If one has too much stress (frequency and/or level), the human mind and body can not withstand it and will suffer.  On the other hand, if one has too little experience with trauma, stress, change, etc.,then any introduction of stress will be seen as a knock-out blow.

A study by Linda Hartling of Wellesley College demonstrated that overcoming hardship and adversity is based more strongly on one’s relationships than on one’s indivdual make-up or individual toughness.  Resilience is strenghtened by the network of relationships one keeps and that sustain the individual.

So, if you are confronting a tough time at work, be sure to kiss your spouse, hug the kids, and talk to friends.  Going it alone may actually harm more than help your business.

Civility Counts

Monday, January 31, 2011 by:David Zahn
Comment
Comments
|
|

A return to civility would be advantageous for business.

Of late, there has been much spoken and written about the shrill and antagonistic tone taken by politicians and the media in an effort to have their message heard and rise above the din of other noise and static inundating voters, viewers, subcribers, etc. Unfortunately, the typical “Man in the Street” has been so turned off by the vitriol, that the message and the messenger is viewed cynically and either avoided or tuned out. It is that same rush to attack and motivation to discount others that has infiltrated and permeated our business relationships as well.

In fact, it is hard to remain civil and well-mannered at work. There are competing pressures, tight deadlines, lack of resources available to meet demands, self-interests to protect (promotion opportunities, pursuit of plum assignments, and corner offices to secure, etc.). Each of these alone would be sufficient to cause people to compete; and in turn, turn less cordial toward each other. When more than one co-exists in a single environment (as it often does); it is enough to almost guarantee that people will be become territorial, protective, aggressive, etc.

Cultural Dynamics

While there may be times where it makes good sense to initiate internal competition in an effort to create a better outcome (Procter  & Gamble has mastered doing that in pitting one brand against another, often in the same product category); it also runs the risk of causing people to focus less on striving to improve and more on hindering others from succeeding.  Instead of it leading to everyone improving, it can sometimes lead to sabotage and strife internally.

What to do

If we agree that it is worth maintaining a level of civility and even in times of disagreement, to avoid inappropriate actions or comments, then the following reminders may be  worth heeding to stave off the potential for increasing conflict when reaching a positive resolution is preferred.

1. Say what you mean, and mean what you say. Even when there are potentially uncomfortable things that need to be communicated, there is no replacement for genuine and authentic communication that is borne of a desire to be productive and accurate in giving feedback. 

2. Better to ask for, then to give advice  — Offering unsolicted advice, telling others would they ought to do, or should stop doing will more often lead to resentment and a general distrust.

3. Walk a mile in their shoes – Rather than assume you know the motives or someone else’s intentions, resist jumping to conclusions. In its place, confirm, check with resources, ask directly, and even then – do not assume to know what someone else is thinking. 

4. See shades of gray – While it is easy to paint someone with a set of beliefs and characteristics that seem consistent with one’s preconceived notions, remember that the other person is a complex set of traits, beliefs, and experiences.  It is helpful to identify a posiitve characteristic about the other person and not ONLY see the negatives. 

5. Ask and listen – Next time you come in contact with a colleague you have a negative opinion of, skipthe mindless pleasantries adn ask a GENUINE question and then STOP long enough to focus on the answer and truly listen.  You may learn your assumptions about the other person were not completely accurate.

6. Show Appreciation – It is amazing how far a simple, “Thank-you” goes.  It happens so infrequently, that when it occurs, it is meaningful.

7. Give credit – The best managers, and the most effective employees have learned that sharing praise or compliments with others is the surest way to receive more.  Those that seek to claim the kudos for themselves quickly learn that they are rarely provided with compliments that are not self-provided!

8. Resist the blame game – Conversely, when things go wrong – as they will from time to time – avoid finger-pointing and assigning blame or determining culpability.  Far better to work to improve the system or ensure that methods are improved to prevent it.  Rehashing mistakes with the purpose of blaming someone does not further the purposes of the organization.

9. Be as good as your promises – if you commit to doing something, do it.  If you find you are unable to fulfull it, let people know as early as you can, provide a rationale as to why it will not happen, but most importantly – offer a way to meet the need, and what you will do to ensure it does not occur again.

10. Treat a rumor like a tumor – no one volunteers to carry around a tumor, and similarly, one should not carry a rumor around without having it checked out by someone who knows for sure what it is and what to do about it.  If a rumor is told to you – confirm it with the right people, those in the know, and resist the urge to work off of less than accurate information. 

Following these ten simple, and straightforward hints will help restore some of the civility back into our work environments.  And who knows, it may lead to more productivity, and greater synergies between employees.  Don’t wait for kindness to come your way. Gandhi had it right: We must be the change we wish to see in the world.

When You Make A Mistake

Monday, January 24, 2011 by:David Zahn
Comment
Comments(1)
|
|

It is bound to happen at some point. Stay in business long enough and there is no way around it. In spite of your best efforts, the best you can hope for is to minimize or reduce the number of times it occurs, but it will happpen. What is the “it” we are referring to? A mistake. An error.

While it is going to happen, in many instances it is not the mistake that will cause the small business person the greatest concern. It is the response and how the company (and you as the business owner choose to deal with it).

The Error

Every business has determined their method for performing work and interacting with customers or clients.  In some instances, it is very specifically documented and procedures are to be followed exactly as written.  In other instances, the business has a culture that is modeled and reinforced by the owner or more senior employees and newly hired employees are inculcated in the process of working with customers through observation of others, training, or managerial oversight.

And as much as a business will try to anticipate ways of avoiding making mistakes, there will be times when circumstances arise and situations occur that have the unfortunate result of a missed commitment, a failure, or an expectation gone awry.  Now that it has happened, the company has a choice to make.  They need to determine how they will choose to address it.

Mistakes are bound to happen, what you do next is critical.

Next Step

Recently, while dining in a casual family-style Mexican restaurant, I had the unfortunate incident of being seated near the kitchen and right in the path of harried servers shuttling back and forth.  As luck would have it, one server turned a corner a bit too quickly and dropped a dish of salsa right down my back.  While no one seeks to have salsa sliding down their spine as the dine, I was not dressed for a business meeting, did not have another appointment to go to after dinner, and if there was a ”good time” for that to occur, this was it.  I was not overly bothered or troubled by it and continued to talking with the people at my table as a waitress offered a cursory apology and dabbed at my shirt to dry and absorb as much of the spillage as possible.

My tablemates and I then engaged in a discussion of what would be an appropriate next step for the restaurant to make.  The suggestions were:

  • Apology is enough. It was an accident and the server was probably mortified and there was no damage done.
  • A discount on the bill.
  • A free dessert, drink, or appetizer.
  • An offer to dry clean the garment, or if that did not satisfactorily remove the stain, pay for a replacement shirt. 

The restaurant did only the first and as I was not unduly impacted, I did not make any demands, raise a complaint, or really even adcknowledge in any way that I had been inconvenienced. I continued to enjoy the meal and chalked it up to just a funny incident that happened during my dinner.

Serious Side

That the restaurant did NOT inquire if I was satisfied with their response though is of concern.  A Manager could have come over and “checked in with me” (even if no other offer was to be made).  Establishing (re-establishing) the satisfaction of a customer, and especially one who had just had an incident NOT of their own making that could likely turn the person against the business seems like the absolute MINIMUM a business should provide. 

As I was out of town when this happened, and will likely not have occasion to visit that restaurant again was not known to the restaurant and their ignoring the potential ill will they COULD have created by ignoring the incident or at least not addressing it beyond the initial apology was a poor managerial decision that should be corrected.  It is not a surprise in a busy restaurant that a spill will happen.  It is a larger mistake not to accept responsibility and attempt to correct it as best as one can when in owning or managing a business.

Think Like A Customer

Monday, January 10, 2011 by:David Zahn
Comment
Comments
|
|

Not every business requires sales people, not every business demands that resources be allocated to production or manufacturing, and it is not even essential that a business have a physical plant or address. However, for any business to succeed, there has to be one necessary condition above all others – a customer willing to make a purchase. And yet, it is not uncommon for business owners to become so focused on efficiency, on cost-cutting, and on streamlining processes; that the customer gets given short-shrift in the strategic planning of the company.  While it is important to manage the internal executional issues of running a business, it is secondary to identifying the customer’s needs and providing suitable solutions.

You May Not Be Selling What You Think You Are

It is illustrative to remember; “Your customer does not buy what you sell, but what he needs to solve a problem.”  As simple as that sounds, it is forgotten or ignored far too often by business people.  Customers are in search of solutions.  In some situations that lead to purchases it is fairly straightforward – a customer recognizes a need to replace a light bulb that has blown and cast a favorite corner of their home into darkness.  So, the customer goes in search of a light bulb to replace the expired bulb.  However, even in this very straightforward example, the customer is really looking to brighten or lighten the corner of their home and has different ways of accomplishing that:

  1. Put overhead lighting in the corner
  2. Place another/different lamp nearby
  3. Change window treatments
  4. Put mirrors on the walls near the corner to reflect the available light
  5. etc.

Even if one chose the most simple path of replacing a bulb in an existing lamp, the choices are extensive:

  1. Wattage
  2. Shape of bulb
  3. Color
  4. Kind of bulb
  5. etc.

A business that sold ONLY white 60 watt bulbs would obviously miss out on numerous potential sales (though it would be efficient to manufacture ONLY 60 watt bulbs and they may even be able to produce the BEST 60 watt bulbs, the number of missed sales would be enormous).  The customer wants to buy a brighter corner of the house.  Only ONE method to accomplish that outcome of many includes 6o watt bulbs.

Milana Leshinsky, a Business Coach recently sent out an email to her subscribers that essentially broke down the process of thinking like a customer into the following steps:

  • What is the specific immediate problem to be solved
  • What is the tangible result one seeks
  • How easy is it to get answers to questions that one may have about the product, options, benefits, risks, etc.
  • How others have solved the same problem or similar ones
  • Are there delivery choices that include “do it for me” (delivery, installation, technical support,bundling of options, etc.)

One thing that Leshinsky also advises business owners to consider is the different ways that customers prefer to make purchases.  Some will want to interact with sales people, either online, in a store, or over the telephone.  Others would prefer to purchase in a self-serve environment without the intervention of sales help (these people are most typically expert buyers who are quite familiar with options and do not require explanations, or discussions of product differences, or problem solving support).  The ability of a company to offer appropriate methods to match the preferred purchasing habits of their customers and not exclusively offer those that are most easily managed goes a long way to helping that customer purchase a solution and not merely peddle products.

The customer expects to be pampered and treated in a way consistent with their expectations.

In the current economic environment, it is even more important to remember that customers have (and expect) more choices, more customization opportunities,  and are more demanding/less tolerant of businesses that are not willing to align with them to provide solutions to meet their needs.

Do You Have a Key Employee?

Monday, January 3, 2011 by:David Zahn
Comment
Comments(1)
|
|

As 2011 begins with the optimism, exuberance, and excitement that a new year brings, many local football fans are having to come to terms with the head coach of the UCONN football team leaving for a different university. While not entirely a surprise, as Coach Edsall has been mentioned in numerous coaching vacancy discussions over the last couple of year, many fans are now having to come to terms with the idea of the team having a different coach at the start of the next season. While most businesses do not get the same level of media attention, capture the imagination of communities to the same extent, nor elicit the equivalent amount of passion about personnel moves, there are very clear lessons that business owners can take from this event and apply to their business.

Randy Edsall is happy about his new job - but is his previous employer?

Key Employee

UCONN had to be assessing the likelihood of Coach Edsall eventually leaving for another position and likely has a list of potential coaches they have been tracking as prospective replacements. While much of the success of the football program can be credited to the Coach, no football team nor business should ever be so dependent on one employee that the future of the team or business hinges on that employee.

While there may be innovators, inventors, or brilliant executors of strategy within companies, a business is best served to protect itself through the following means:

  1. Key employee insurance – many companies are familiar with purchasing insurance to protect assets (real estate, equipment, autos, etc.), but may not perceive the need (or even be familiar with the ability) to purchase “key employee” insurance.  Just like one purchases life insurance to cover personal expenses or provide for one’s family; a business can also purchase insurance on key employees who represent a significant contribution to the business.  There are a couple of methods suggested for determining how much insurance to purchase, but two common ways are to determine how much it would cost to replace the person (recruiter fees, relocation expenses, time invested in interviewing, etc.) and to assess how much profit the key employee represents to the company and how long it would take to recoup that amount if the person were to leave.
  2. Succession Planning – Within a company, it is advisable to always be cross-training employees so that more than one person can perform any task at any given time.  In the natural ebb and flow of business life, people go on vacation, may have medical emergencies, or be unavailable for periods of time – so even if an employee does not leave the company, there are going to be times where a task may be required in the absence of that key employee. 
  3. Compensation and Incentives – Of course, a business that does have a key employee needs to give considerable thought to what that employee seeks in terms of; motivation, incentives, compensation, or challenges.  A mistake that some business owners make is to assume they know what motivates the key employee and fail to confirm their assumption.  What is an incentive for the entrepreneur may not be viewed similarly by the employee. Opportunities for more compensation may pale in motivational pull when compared to chances for education, challenges to master new skills, recognition, etc.

Lessons Learned

The filling of the Coach position for UCONN’s football team will be debated and followed by fans and journalists over the next few weeks and rumors and speculation will be rampant about exactly what profile or traits the next coach will need to succeed.  However, the very way that football coaches approach building their own teams applies to sourcing the coach as well.  Coaches maintain a depth chart of all position players and every week players are assessed and graded to determine how they “stack up” versus others within the team. Strengths and weaknesses are vigilantly tracked and scored versus objective standards established for both the function or position the athlete plays and the athlete’s potential.

Similarly, businesses should be very cognizant of the skills of each employee, have (either formal or informal) developmental plans to improve talents and experiences, and provide the appropriate incentives to employees to learn the skills of their supervisors, peers, and even subordinates. Businesses perform best when employees are able to work to their maximum potential – and key employees have an even higher upside potential than their peers.  As an entrepreneur, your business depends on how you approach the caring and feeding of your key employees.

Page 5 of 512345