A Quantum Voyage

Looking Forward After the Fact

“In three years, IBM (NYSE: IBM) has poured at least $10 billion into a new division, Information On Demand, built around the theory that businesses are drowning in a sea of unorganized and underutilized data.” Here's the article.

We applaud IBM, Oracle, SAP and the other firms that are working to bring order to chaos. There are nuggets of gold in data warehouses around the world. With all this technology being brought to bear, the operational history of an organization should be readily available for use in decision-making.

While laudable, keep in mind that the information being culled is historical; it has already been generated by the efforts of the people in the organization. It's similar to the accounting function. That is, “the beans are being counted.” Terrific, on the face of it. We believe, however, that not enough attention, time and effort is being focused on the front end. People's activities created the results that are represented in these data. Our question is: are these human activities the right ones, leading to the desired outcomes?

Our experience with the small and mid market shows that there is an abundance of “executing before the planning is done”. We believe that this is probably true to in the Corporate/Enterprise market as well, albeit, to a lesser extent. Regardless, why is this the apparent case? Why does articulating a vision, formulating strategy and building an organization-wide executable system of goals get short shrift, while combing through a mountain of results is de rigueur?

In a word, Leadership. If the CEO/President/Head Honcho of an organization doesn't champion the process, it doesn't happen. If the leader isn't committed to looking forward and leading the effort to determine the organization's future, no one else can or will. If there is no future magnet attracting the organization, then the market, or some other external influence will make that determination for it. The historical data being massaged will represent what the people in the organization produced based on their best efforts; but not necessarily what the organization wanted.

Remember, Without a system of goals, our only motivation is survival. If just surviving is OK with you, don't change anything. If planned, realistic, controlled growth is more your style, change is required. You make the choice.

-RSL

Do Something!

Our clients are wondering, as are many of us, "what's next?"  "How are we to behave under these difficult circumstances?" One thing is certain; if we do nothing, nothing will happen. That is, without action there can be no results. If we sit around wringing our hands, lamenting the "lousy economy, sick credit situation and housing slump", it will just get worse. The old adage, "don't get mad, get even," seems to apply here.

There is no panacea, no one answer, however, we can do something. And, as cliche as it may sound, goal setting can come to our aid.

Our role as consultants is to help our clients improve organizational performance. The people in the organization are the engine that drives that performance. It follows then, that improving the performance of the people will have a direct impact on the performance of the organization as a whole. Just how can we generate and recognize improved organizational performance?  And how can we use goal setting to help us?

Let's start with something I learned early in my consulting career: "Without a system of goals, our only motivation is survival." A system of organizational goals includes both the organization's goals and the people's goals. Together, they are the "system". One without the other will yield less than optimal results. . . or no results. We all know this. I submit to you, however, that knowing is not doing. Peter Drucker said, "Decisions are only good intentions until they degenerate into work".  Interesting use of the word "degenerate". Simple examples may include, "we're going to increase sales" or, "let's reduce waste" or, "we need a higher return on our investments".

Until these three "decisions" are converted, or degenerate into executable goals that are specific, measurable, tangible, realistic and controllable, they are "just good intentions". There is no denying that it is hard work, mostly mental and emotional work, to create meaningful goals. In an organizational setting, the process is most effective when it is collaborative, meaning that differing points of view must be taken into account. This may lead to confrontation. Many people avoid confrontation because they equate it with negative conflict. With the confrontation of issues there can be resolution. With resolution consensus can be reached. Without at least consensus, if not agreement, forget it. The outcome of the process will likely be vague. This is the painful truth about effective, collaborative goal setting.

What does all this verbiage have to do with "getting even"? Everything! If you can set some short term, realistic goals, say 6 to 12 months, you can get results that will produce results for yourselves, your suppliers, your customers and your people. No guarantees! The alternative of doing nothing, however, does carry a guarantee. . . no results!

-RSL

A Leader's Job

Letter from Richard S. Lewine, Chairman of Achievement Alliance Corp.

After 30 years of working with leaders of small and mid-size
organizations, one of the many things I've learned is that in times like
our current financial meltdown, the contrast between Leaders and
Managers is clear. Now is the time for Leaders to do their job. To
reassure their people; to articulate a clear Vision; to LEAD!

The world is still functioning. People still NEED food, clothing and
shelter; and they WANT other things. Businesses still need suppliers and
customers. We don't operate in a closed system, isolated from the rest
of the world. The question on the table for us is one of faith and trust.

Our economy, in fact, the world economy is built on these two qualities.
As a buyer of products and services, do you have faith in the ability
of your suppliers to deliver as promised? As a seller, do you trust your
customer enough to extend credit for payment later? If you don't believe
that one or both of these conditions exist then cash in your chips and
call it a day.

On the other hand, if you are committed to maintaining your enterprise,
to perpetuating it, then you must believe these conditions exist. The
challenge is to ferret out those that agree with you and together, keep
the wheels of business turning. This is what Leadership is about.
Setting the tone, inspiring, facing the obstacles and roadblocks of
reality and tapping your organizational resources, your people, for
potential solutions.

I believe we have an obligation to "keep on keepin' on." Free enterprise
is about taking risks. It's about converting dreams into reality. it's
about setting realistic goals that people can get their arms and heads
around and buy into. It's about supporting your people's efforts at
achievement and acknowledging their performance.

Yes, I'm "waving the flag".  That's a leader's job!