Business Rocks: Just Checking

Dylan, our eldest son, took his theory driving test last week. Or, to be more precise, he nearly took the test. The truth is that, when we got to the testing centre, he mumbled something about having forgotten his driving licence, which was needed to prove his identity.

Luckily for him, I am a man of infinite patience and so we drove the 50 minutes back home – in complete silence – and rebooked the test for a few days later. That day, we wrote a checklist of everything he needed for the test and ticked off each item before we set off (which, I’m pleased to report, he subsequently passed).

Checklists are a tool that can massively help improve operational and management performance. Pilots use them ahead of, and during, each flight to maximise safety, for instance. The use of checklists in healthcare has been shown to lower post-operation mortality rates by at least 20% and shorten hospital stays by as much as 50%. And, according to the song, even Santa checks his list a couple of times before setting off on his sleigh each Christmas!

In my experience, though, business managers don’t like to use checklists in their own work. Possibly, as with doctors when medical checklists were first introduced to operating theatres, managers believe that the use of checklists will undermine their professionalism. I can see huge upsides, though, to using checklists on a variety of managerial activities, including, for example, recruitment, decision-making, investment proposals, performance management, implementation management and communications.

Where could the systematic use of simple checklists help you better manage your business and improve its performance?

 

Off The Record: Santa Claus Is Comin’ To Town

Written by John Coots and Haven Gillespie as far back as the 1930s, the song has been recorded by dozens of artists, although my own favourite versions are by The Crystals in the 1960s and the 1975 live version by Bruce Springsteen and The E Street Band.

 

He’s making a list

He’s checking it twice

Gonna find out who’s naughty and nice

Santa Claus is comin’ to town

 

© Stuart Cross 2018. All rights reserved.

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Business Rocks: Problem Stones

Last week I found out that I have a relatively large stone in one of my kidneys.

Now, I have passed a couple of kidney stones over the past 10 years and can confidently confirm that passing a stone is more painful than childbirth (although, admittedly, with fewer subsequent nappies to change). To be honest, though, this stone is too big to pass (I hope!) and so will have to be removed surgically.

I guess that I could just live with it until the periodic pain I get from the stone is simply too frequent and too severe. Realistically, though, my life will be better if I am to get in there and take it out.

Businesses often suffer from the equivalent of renal pain and many try to live with it rather than taking the corrective action to properly sort it out. The wrong manager in the wrong role, an old and cumbersome IT system, a poor performing product range or an inappropriate customer service policy, for instance, are all examples of corporate problem stones.

What are the problem stones that your business is trying to live with when it should be taking the surgical action to remove them and improve performance?

 

Off The Record: And It Stoned Me by Van Morrison

And it stoned me to my soul

Stoned me just like going home

And it stoned me

 

© Stuart Cross 2018. All rights reserved.

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Business Rocks: The Best Time to Plant a Tree

I’m working with a client that is looking to develop a far clearer and more compelling strategy and proposition for its business. While the management team are excited about the emerging future direction, they are equally frustrated that they didn’t do it years ago. It’s so much harder, they argue, to catch up with the market leaders now than if they’d made this move much earlier.

The answer to this comes from a Chinese proverb that goes, “The best time to plant a tree was 20 years ago. The second best time is now.

It can be easy to believe that you’ll never be able to catch up with the ease and convenience of the best on-line businesses, or match rivals with strong track records of product innovation or beat those that are able to sustainably deliver low cost solutions to their customers. Amazon, Apple and Ryanair, for instance, all planted their strategic trees at the very best time – 20 years or more ago.

But the second best time is still now. 

 

Ten years or so ago, for example, Tesco looked unassailable as the UK’s leading grocer. It might not have seemed worthwhile to take on this retail giant. Yet the investment and focus from Aldi and Lidl, in particular, has shifted customer behaviour and has completely changed the dynamic of the UK grocery market.

You may think that you’re behind your competitors in some areas of your business, but what new strategic trees could you be planting now that, over the next few years, could help your business to grow, blossom and thrive?

 

Off The Record: Let It Grow by Eric Clapton

 

Standing at the crossroads, trying to read the signs

To tell me which way I should go to find the answer

And all the time I know

Plant your love and let it grow

 

© Stuart Cross 2018. All rights reserved.

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Business Rocks: Hidden Successes

Not all successes are obvious or clear. During difficult trading conditions, in particular, it is tempting to dwell on the problems, rather than the opportunities. But even in the trickiest situations, my experience is that there will still be successes out there – if you’re willing to look for them.

One of my clients, for example, is struggling to deliver growth from its core product ranges. So, we segmented the ranges more carefully and found that although many of the cheaper sub-ranges were suffering declines, there were clear growth stories from some specific added-value products.

What’s more, customers were telling my client that no-one else had anything like these products available in the market. Unsurprisingly, my client is now working out how it can develop and drive greater growth from these ranges, and not simply determining how it can halt the drop in revenues from its entry-level products.

Twenty years ago, IBM shifted its business model – and its fortunes – from being a seller of hardware to becoming a much broader-based consulting and solutions provider. This shift followed the realisation of the new CEO, Lou Gerstner, that the customer service teams, which were a cost centre rather than a profit centre at that time, were seen by customers as a key point of differentiation. In other words, service and expertise were a hidden success and potential driver of growth for IBM.

Where are your hidden successes? And what steps could you take to find them, nurture them and exploit them to drive even greater growth for your business?

 

Off The Record: Suddenly I See by KT Tunstall

Suddenly I see

This is what I want to be

Suddenly I see

Why the hell it means so much to me

 

© Stuart Cross 2018. All rights reserved.

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Business Rocks: Attractive Markets Aren’t Always So Great

 

It was announced this week that New Look, the UK fashion retailer, is exiting from the Chinese market and closing its 120 stores. New Look’s Chinese failure follows in the footsteps of other major retailers, including M&S, Home Depot and Tesco.

China is the world’s second-largest consumer and retail market and has attracted investments from thousands of companies, both large and small. The size, growth and potential profitability of the Chinese market is a huge pull for any investor.

All of these enterprises face a strategic truth, however: it’s not the size or attractiveness of the market that determines your ultimate success. Instead, it’s your ability to establish and exploit clear competitive advantages that makes the difference.

Like its failed predecessors, New Look, was unable to establish advantages in China that enabled it to attract sufficient numbers of customers or produce the returns required to justify its investment.

And what’s true for New Look in China is similarly true for your business, whether your operating in Asia, Europe or the UK alone. Finding and spotting attractive new market sectors to enter is a key element of business growth, but only if you are able to profitably differentiate from your competitors.

What are your company’s competitive advantages, and what steps are you taking to identify build, sustain and create advantages that will drive your future success?

 

Off The Record: Tougher Than The Rest by Bruce Springsteen

Maybe your other boyfriends

Couldn’t pass the test

Well, if your rough and ready for love

Honey, I’m tougher than the rest

 

© Stuart Cross 2018. All rights reserved.

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Business Rocks: Running Ahead Of The Ball

Finney, our cocker spaniel, loves to play fetch with a tennis ball. I’ve noticed that he starts running for the ball when my arm is raised to throw it. Even before I’ve begun to throw the ball, he’s off and sprinting in the general direction I’m facing. As the ball arcs over him he’ll then make note of where it’s heading and makes the necessary changes in direction. And if the ball doesn’t appear in his line of sight within a few seconds he stops and looks back at me to understand what’s happening.

I’m currently working with a client that operates in a similar way. Teams across the business are proactive and get on developing, testing and delivering new ideas and changes before fully creating the detailed plans that may have been traditionally expected. At times, the company’s approach can create some confusion and uncertainty, but it also generates genuine organisational pace.

In truth, the uncertainties are relatively easy managed and the tweaks in direction and focus are quickly taken by the management teams in their regular, weekly meetings. And the upside of the company’s pace has been rapid growth, market share gains and greater profitability.

How is your business tackling growth and innovation? Are you waiting until you’re certain where the ball is heading before moving, or, like Finney and my client, are you anticipating the ball’s future trajectory and getting on the front foot, confident that you can make any necessary adjustments along the way?

Off The Record: Old King by Neil Young

King went a-runnin’ after deer

Wasn’t scared of jumpin’

Off the truck in high gear

King went a-sniffin’

And he would go

Was the best old hound dog I ever did know

 

© Stuart Cross 2018. All rights reserved.

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Business Rocks: The Sum of Our Choices

 

I think it was Albert Camus, the existentialist novelist, who said, “Life is the sum of all our choices.” In other words, it’s the decisions we make – or fail to make – that determine the life we live.

It’s the same in business. Your own organisation, for instance, is the sum of all the decisions and choices made by its leaders, managers and colleagues, both past and present. Your best chance of success exists when these choices have consistency and coherence and when decisions are mutually supportive rather than taking the business in different directions.

As a result, you must find a way to help align those decisions and choices. A clear purpose and mission, a compelling and focused strategy and an over-arching performance goal are all ways of building alignment and encouraging consistency. They act as a compass for decision-making, establishing a ‘true north’ for decisions so that everyone ends up at the same destination.

How strong and effective is your organisational compass, and how is it helping your teams and managers to make consistent and coherent choices and decisions?

 

Off The Record: A Town Called Malice by The Jam

A whole street’s belief

In Sunday’s roast beef

Gets dashed against the Co-op

To either to cut down on beer or the kids’ new gear

It’s a big decision in a town called malice!

 

© Stuart Cross 2018. All rights reserved.

 

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Business Rocks: The Cost of Delay

 

Last week I was working with a client in the US to help the business accelerate its internal pace of delivery. Like many organisations with a desire for improvement, the company is already doing many excellent things – as with this client, when it comes to change, it’s often more a question of sharing existing best practices than creating something totally new!

One of the corporation’s senior leaders told me, for instance, about a technique he uses to maintain the pace and urgency of his key initiatives. At the start of every project, he and the team determine the monthly cost of delay- how much the business will lose each month by not delivering the initiative on time.

On his latest project, he had estimated the monthly cost of delay at $20 million. That calculation had two consequences. First, it provided the entire leadership team with the shared desire to deliver as soon as possible. Second, it helped the project team to make better decisions about the best way to overcome potential delays.

At one point in the project, for example, the team decided to invest $10 million in new software to accelerate its delivery by six weeks. Even though the level of spend was high, it was cash generative in less than a month!

 

For how many of your big projects do you really understand the monthly cost of delay? And what changes to your decision-making and your speed of execution would it make if you did?

 

Off The Record: I Say A Little Prayer by Aretha Franklin

 

I’m conscious that I haven’t paid tribute to the amazing Aretha Franklin, who sadly passed away last month. I’m sure we’ve all turned to Aretha’s songs at some point in our life, as she seemed make an emotional connection that others just couldn’t find. If you hear other versions of Respect, I Say A Little Prayer or A Natural Woman, for instance, you realise that no-one else comes close to Aretha’s ability to capture the soul of a song. A true legend.

I run for the bus, dear

While riding, I think of us, dear

I say a little prayer for you

At work I just take time

And all through my coffee-break time

I say a little prayer for you

 

© Stuart Cross 2018. All rights reserved.

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Overcoming The Fear Of Learning

 

I am currently reading Fear: Trump in the White House, written by Bob Woodard, the legendary Washington Post journalist. It’s a fascinating insight into the internal machinations and ways of working of President Trump’s top team and their supporting officials, which, at the very least, could be called unconventional!

Yet, it was one of Woodward’s throw-away comments that struck me the most. Writing about the acceleration of North Korea’s nuclear programme since the death of Kim Jong Il and his succession by his son, Kim Jong Un, Woodward noted:

The elder Kim had dealt with weapons test failures by ordering the death of the responsible scientists and officials. They were shot. The younger Kim accepted failures in tests, apparently absorbing the practical lesson: Failure is inevitable on the road to success. Under Kim Jong UN, the scientists lived to learn from their mistakes, and the weapons programs improved.”

Now, I’m not suggesting that you or other business leaders would actually shoot those associated with failure, but you can see where I’m going!

The question is this: Does your organisation suffer from a fear of learning, immediately dropping managers who lead projects that fall short of expectations and which are deemed ‘failures, replacing them, instead, with new project leaders?

Or do you help these managers to learn from their mistakes so that they can apply those lessons to better help you to accelerate your company’s ability to grow, succeed and thrive?

© Stuart Cross 2018. All rights reserved.

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Business Rocks: Better Tomorrow

OK, I admit it – I’m a procrastinator! Even with this newsletter I usually wait until an hour before it needs to go out before I write it. That’s what’s happened this morning. It is the deadline that gives me the energy and motivation to get things done.

I’m also beginning to think that there is also a condition called ‘corporate procrastination’, where an entire organisation or team of people wait until the last minute before taking action. It’s uncanny how many times I’ve witnessed actions on key projects only taking place during the last few days ahead of an executive review of progress. It is the looming reality of accountability that drives action.

So, what’s the problem? Well, in most businesses the executive team may only review progress of even their most important strategic priorities, at best, on a monthly basis, with many teams undertaking quarterly reviews. It’s difficult to make consistent, rapid progress on projects when you’re only being held to account four times a year.

A faster review cycle is needed at all levels in organisations to encourage and drive greater pace and quicker progress. At Amazon, for instance, the executive team meet weekly to discuss, review and re-focus their most important initiatives.

What is the review cadence that you set in your business for your key priorities? And what improvement in performance could you achieve by increasing it?

As for me, I’m going to stop procrastinating – starting next Monday!

 

Off The Record: Put It Off Until Tomorrow by Dolly Parton

Oh stay, stay just one more day

Loneliness isn’t far away

Put it off until tomorrow

You’ve hurt me enough today

 

© Stuart Cross 2018. All rights reserved.

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