Archive for December, 2009

Turning Resolutions Into Results (Part 1)

Thursday, December 31st, 2009

Click on the link to read my article, Turning Resolutions Into Results (Part 1), which has just been posted on BNET.

© Stuart Cross 2009. All rights reserved.

The Essence Of Excellence

Thursday, December 31st, 2009

I don’t usually post quotes here, but this is an exception. I am grateful to Alan for making this quote available to me. It’s from the former US Secretary of Health, Education and Welfare, John W. Gardner’s book, Excellence (first published in the 1960s) and will help shape my thinking from here on:

“We must learn to honor excellence in every socially-acceptable human activity—and to scorn shoddiness, however exalted the activity. An excellent plumber is infinitely more admirable than an incompetent philosopher. The society which scorns excellence in plumbing because plumbing is a humble activity—and tolerates shoddiness in philosophy because it is an exalted activity—will have neither good plumbing nor good philosophy. Neither its pipes nor its theories will hold water.”

© Stuart Cross 2009. All Rights Reserved.

Business Lessons From The Latest Failed Airline Bomb Plot

Tuesday, December 29th, 2009

Nothing adds complexity, wastes time and reduces the effectiveness of organisations as much as solving problems by focusing on effect rather than cause.

Take the immediate response to the latest failed terrorist attack. By adding to the number and length of searches carried out on all air passengers, the authorities are merely adding to the workload of security staff, delaying flights and increasing costs for all involved.

It is the equivalent to ‘fixing’ a leaking pipe by placing a series of buckets underneath the leak. It does nothing to fix the hole in the pipe or prevent future leaks from occuring.

Since the atrocities of 9/11 I am not aware of any instances where terrorists were prevented from carrying out an attack on a commercial airline as a result of an airport security check.

I see the same inefficiencies in corporate organisations. For example, I recently worked with an organisation where it took an executive level director over 3 months, and many hours of negotiation, to get his team the smart phones they needed to do their jobs well.

As he haggled with the “Head of Smart Phones” he found out that one or two previous managers had wasted money on unnecessary smart phones in the past. Unfortunately, these actions were then used to prevent anyone else from acquiring these phones.

The best solution for this organisation is not to make it harder for everyone to make good decisions (which focuses on effect), but to change the behaviour of the previous managers and to appoint and develop more capable managers in the first place (which both focus on cause).

Similarly, the solution for airline security is not to impose unnecessary screening on the vast, vast majority of passengers, but to focus the attention of the security services on higher-risk passengers and to prevent those who are suspected of terrorist involvement from boarding the plane in the first place.

Respect For Failure Encourages Innovation

Tuesday, December 22nd, 2009

Click on the link to read my article, Respect For Failure Encourages Innovation, which has just been posted on BNET.

© Stuart Cross 2009. All rights reserved.

The Myth Of Change Management

Monday, December 21st, 2009

Sunrise over mountain streamManagement books talk about the nature and speed of change as if it is some new concept, developed over the past 50 years. Academics and consultants develop models and approaches that seek to help business leaders overcome the difficulties of getting people to accept and respond to change.

Yet people cope with change all the time. Births, deaths, marriages, divorces, new jobs, lost jobs: most people seem to find ways to deal with these situations and still function effectively.

Far from being fearful of change, people, on the whole, are pretty good at it, and the history of mankind is, in many ways, a testament to our species’ ability to handle and adapt to change.

In fact, the term, “change is the only constant” is not from a recent management book, but was first coined by Heraclitus, 2,500 years ago.

Not much has changed since.

Fixed On The Vision, Flexible On The Route

Thursday, December 17th, 2009

set and reach goal conceptCan you articulate your company’s key strategic objectives? If so, do they provide clear and unequivocal guidance to you and your team about what is required to achieve success over the next few years?

Too often companies’ strategic statements are a mix of platitudes and hubris. For example, a strategic objective to deliver the ‘best customer service in the world’ is likely to receive nods of agreement from around the board table but is simply not precise enough to be delivered by the organisation.

Once you move away from platitudes to specific, measurable outcomes, you will create the focus, alignment and momentum to deliver the performance you’re after.

For example, for the last 5 years or more, Tesco has set a goal to be as big in non-food as it is in food. Delivering this goal has meant that, in some instances, more resources have been allocated to non-food teams than to the traditional food teams, which has created a stream of innovation in areas including clothing, electrical goods, retail services as well as its launch of Tesco Direct.

But clear, focused objectives are only the start. You also need to develop the commitment to pursuing and delivering a suite of initiatives that will, cumulatively, enable you to achieve your objective.

This becomes a problem when your first few initiatives do not go as planned. It can be tempting simply to give up on the goal, rather than develop new initiatives.

When I worked for UK retailer, Boots the Chemists, for example, the organisation set out a ‘wellbeing’ strategy, with a focus on added value services, such as dentistry, massage and complementary health.

The trouble started because the company over-invested in its initial initiatives, and when they didn’t work, it quickly back-tracked and gave up on the whole strategic objective, even though there were still some interesting consumer opportunities.

Jeff Bezos, CEO of Amazon put it like this: he said that his business is “fixed on the vision, flexible on the journey”, and that is the attitude that best leads to strategic success.

How To Avoid Crisis-Led Cost Cutting

Wednesday, December 16th, 2009

Click on the link to read my article, How To Avoid Crisis-Led Cost Cutting, which has just been posted on BNET.

© Stuart Cross 2009. All rights reserved.

Stuart Quoted On BNET

Tuesday, December 15th, 2009

I was recently interviewed and quoted on BNET for an article called Why Women Aren’t Making It To The Board

In many ways this is an old, familiar story, but why do you think that women are still in short supply along the executive corridor, and what, if anything, do you think should be done about it?

© Stuart Cross 2009. All rights reserved.

The Upside Of Worst-Case Planning

Friday, December 11th, 2009

How would you change your business if your profits were cut by 50% overnight?

I was working with an executive team earlier this week, helping them to create focus and alignment around their agenda for the next 12-18 months. They have a potential problem – which may or may not happen – and so did some work to determine how they could reduce costs if the worst case was to happen.

Despite this organisation being full of busy, efficient and effective people, the exercise helped them discover interesting new ways in which they could more than cover the shortfall.

And here’s the interesting thing: many, if not most of the ideas can be applied to the existing business whether or not the worse case happens.

In other words, by seriously reviewing the implications of a worst-case scenario, this executive team has created alignment and commitment around a few, focused actions that will add 25% to their bottom-line over the next 12 months.

If you were to really question the way your organisation does business, what new opportunities for profit growth could you discover?

© Stuart Cross 2009. All rights reserved.

8 Ways To Improve The Communication Of Your Strategy

Monday, December 7th, 2009

  1. Keep it simple, stupid. If a message is to be remembered it must be simple. That’s why it’s so important to focus on your few, big priorities, and not try and list everything. In Bill Clinton’s first presidential campaign, the internal reminder about the message was a sign that read, “It’s the economy, stupid!” What’s the simple focus you want to give your organisation?
  2. Have your 3-5 strategic priorities to refer to in every discussion. When I worked for Boots the Chemists, this was the cornerstone of CEO, Richard Baker’s communication strategy. Like a politician who has decided the answers she wants give, even before she’s been asked the questions, Richard was able to bring all of his responses back to his key priorities for the business.
  3. Expect to communicate it over 6,000 times. Lets say that the strategy has a ‘life’ of three years. If you assume that there are circa 200 working days a year and that you have 10 opportunities to articulate the strategy each day, there are up to 6,000 separate strategy sound bite opportunities over the three years. Of course, you could be more communicative, but let’s start somewhere.
  4. Have conversations, not speeches. There is a time for major speeches to set out your strategy and vision, but that is just the start, not the end of your communication plan. More important is the drip, drip, drip of your daily conversations. Unless they are in line with your key messages, your carefully crafted annual speech will be quickly forgotten and ignored.
  5. Create an emotional connection, not just a rational argument. Strong logic and rationale will help your people understand the new strategy, but they will only become committed if there is an emotional impact as well. For example, one of my clients, Avon Cosmetics, focuses its message around its goal of ‘empowering women’. This message helps create an emotional connection between the company and its thousands of, almost exclusively, female representatives around the globe.
  6. Use stories and examples. One way to create emotional engagement is to use stories. For example, when Sir Stuart Rose became CEO of M&S he used the story of how one product manager created an espadrille shoe from idea to the store within 12 days as an example to the rest of the business about effective risk taking.
  7. Appeal to your people’s self-interest. People aren’t afraid of change per se; they manage change on a daily basis. However, they will only act willingly when it is in their self-interest to do so. You should therefore seek to make a connection with your people’s priorities and why delivering the strategy is good for them. Aligning bonuses and rewards with your priorities are obvious ways that you can do this, but there are other approaches. Appealing to personal development and growth opportunities, managing your people’s wellbeing, increasing the sense of belonging between the company and its people, and the wider importance of the work of your organisation are all factors which have been shown to affect employee satisfaction and loyalty.
  8. Take visible action. In the end, of course, actions speak louder than words. By taking action consistent with your message, people will see that you are serious; without action your message is just empty words. For example, one way in which P&G’s ex-CEO, AG Lafley, hammered home his message that ‘the consumer is boss’ by ensuring each of his business trips included in-home and in-store customer sessions.