Archive for July, 2009

Do You Pass The Simplicity Test?

Friday, July 31st, 2009

How do you measure up on the Simplicity Scale? Score yourself from 0 to 5 for each of the statements below. Focus primarily on the area of the organisation for which you have direct responsibility.

  1. We have a clear strategic intent that, in simple, everyday terms, articulates how we will succeed (e.g. Southwest Airlines: We are the low-fare airline).
  2. As a management team we have identified a handful of objectives (say, 3-6) that drive our focus and activity.
  3. We have crystal-clear accountabilities across the business, and I am never concerned that I am stepping on someone else’s toes.
  4. I know exactly how to get approval for a new investment or initiative.
  5. In a typical week I spend less than a quarter of my time in formal meetings.
  6. We have minimised the number of management layers – there is no further room for improvement.
  7. Our planning and budgeting process is short, sharp and effective, taking less than three months from start to finish.
  8. When a new programme or assignment isn’t working it is quickly adjusted or killed – we do not allow problems to fester.
  9. I set my team clear objectives, but leave it to them to work out the best way forward.
  10. In the past six months we have taken big strides in removing unnecessary complexity from our organisation.

So how do you measure up? Compare your total score to the ratings below.

Over 40: Complexity under control, for now – You’re highly effective and productive, but make sure you stay alert to the creep of complexity.

25-40: Threat of complexity - If productivity isn’t suffering now it soon will be. Identify your key priorities and target improvements in simplicity over the next three months.

Less than 25: Overgrown complexity – Your organisation has low productivity and is spinning its wheels. You need to work hard to focus your efforts and drive greater simplicity immediately.

© Stuart Cross 2009. All rights reserved.

Seven Secrets Of Networking

Tuesday, July 28th, 2009

Click on the link to read my article, Seven Secrets Of Networking, which has just been posted on BNET.

How An Injured Sparrow Can Help You Drive Growth

Monday, July 27th, 2009

Recognising and testing your assumptions is a critical aspect of driving business growth. Yet many of our fundamental assumptions often remain unchallenged.

For example, the photo shows me as six-year old nursing a sparrow I’d found in the garden. The sparrow had a broken wing and so my mother and I put it in our garage with a saucer of bread and milk.

A couple of mornings later the sparrow had gone. My mother told me that the broken wing had recovered and the bird had flown away.

I’m sure that you already know the real ending. It’s obvious, isn’t it? The sparrow simply died and my mum put it in the bin.

But here’s the thing: I only realised this when my mother told me a couple of years ago - when I was 42 years old!

Shame on me, you may say, and you’d be right. But we all carry around beliefs and assumptions that we simply take for granted and no longer question or even think about.

Invisibly, they control our decisions, our allocation of resources and the issues we choose to focus on. Yet if we shake the scales from our eyes, and look at our situation afresh, new opportunities can appear. For example:

  • Ryanair’s growth is based on ignoring the assumption that all passengers want and will pay for full-service air travel.
  • Tesco’s success can be traced back to its decision in the 1980s to move away from high streets and into larger out-of-town locations, a policy it pursued with more speed, rigour and determination than its rivals.
  • First Direct transformed UK retail banking by challenging the assumption that all banks needed branches to serve customers well.

What are your ‘injured sparrows’? What are the assumptions and beliefs that shape your thinking and which you have not challenged in recent years? And what new opportunities would be created if you did?

© Stuart Cross 2009. All rights reserved.

ProfitPDQ Fundamentals

Friday, July 24th, 2009

Listen to Stuart discuss how to inject and embed pace and results in your business.

 

Focus And Pace: Lessons From General Patton

Thursday, July 23rd, 2009

I have just finished reading Anthony Beevor’s excellent new book, D-Day: The Battle For Normandy. It’s a fascinating and insightful account of the three-month war of attrition following the D-Day landing, culminating in the German surrender in Paris.

But one thing struck me more than anything: Beevor points out that the greatest psychological stress was placed on the army when they were bogged down, neither moving forward or backward. Even retreats were less stressful for the soldiers than sitting in their foxholes.

Pace and progress also benefit from focus and clarity, and Beevor contrasts the indecision and political manoeuvrings of Montgomery with the terse, forthright approach of the General Patton, commander of the US Third Army.

A typical Patton order was made to Major General Cook on 14 August 1944: “Take Orleans at once.” Within a few hours the lead troops had advanced nearly 100 miles to their objective, and Beevor quotes Patton’s diary from the following day, ”The number of cases of ‘war-wearies’ and self-inflicted wounds have dropped materially since we got moving. People like to play on a winning team.”

In my experience there is a clear parallel with organisational performance. Movement and momentum is critical to organisational confidence and self-belief.

Setting clear objectives, trying stuff and taking action is far more motivational for your managers and teams – even when it leads to some failure - than holding endless meetings in your office trying to make the perfect decision and spinning your wheels.

© Stuart Cross 2009. All rights reserved.

Mind The Gaps

Tuesday, July 21st, 2009

Click on the link to read my article, Mind The Gaps, which has just been published on BNET.

Bites and Nibbles

Monday, July 20th, 2009

Building a growth strategy is a series of nibbles and bites. A bite is a big move, where you are raising the bar and driving for results. A nibble, on the other hand, is about dipping your toe in the water, assessing whether something is likely to work and discovering the best way forward.

There are four alternative approaches you can pursue:

  1. No nibbles, no bites. This may be possible in some highly regulated industries, such as the water industry, but is unlikely to generate real growth for most companies. Instead, you are simply perfecting what you’ve always done.
  2. All nibbles, no bites. These companies are forever trying new things but lack the confidence to make big, strategic moves. As a result they may simply follow rather than lead the market. For example, ITV has struggled to transform its business model in response to its falling advertising revenues, which have resulted from the explosion in TV and alternative media channels and the growth in subscription TV services.
  3. All bites, no nibbles. This is a high-risk strategy that may work but can lead to big losses if you get it wrong. When I worked for Boots, for example, the CEO, Steve Russell, wanted to establish a broader ‘wellbeing’ strategy. Instead of testing his ideas, Steve decided to take some big bites in wellbeing services, including laser eye surgery, massage treatments and dentistry. Unfortunately these investments didn’t pay off and the company subsequently wrote-off £100 million.
  4. Mix of bites and nibbles. This is the ideal approach, but you need to get the balance right. Most organisations cannot take more than half a dozen big bites or less at any one time. It is essential that priorities are made and, while the big bites are taken, a series of nibbles on the next set of big ideas are also made.

What’s your focus for growth? Nibbles, bites or neither?

© Stuart Cross 2009. All rights reserved.

The Ultimate Leadership Test

Tuesday, July 14th, 2009

Click on the link to read my article The Ultimate Leadership Test, which has just been published on BNET.

Things To Do Today

Monday, July 13th, 2009

I had a meeting earlier today with a client who brought along his notebook (pictured). I suppose that we’re all busy, but 115 pages, just for today’s activities, seem a little excessive!

I asked him how many pages were on his action list was for next week. 500? 1,000?

The best advice I ever received on action lists is to list tomorrow’s top three actions the evening before. There will always be stuff that happens during the course of a day, but if you commit to and action your three top priorities then you can be confident that you are making real progress on your agenda.

And then you won’t need to carry around 115 pages of guilt.

Why Now Is The Perfect Time To Invest In Growth

Friday, July 10th, 2009