A Quantum Voyage

It's Not Too Late.

It's not to late to. . .

            •Set goals for 2009

            •Commit to helping other people

            •Find a new job

            •Open a new business

            •Satisfy your customers/clients

            •Show your family that you love them

            •Enjoy each day as it comes

            •Take a walk in the woods

            •Read a good book

            •Learn to play the piano

            •Take art lessons

            •Enroll in college

            •Join a networking group

            •Clean out your garage and have a garage sale

            •Listen to your favorite music

            •Contribute to a charity

            •Volunteer your time

            •Invent something new

            •Write down your dreams

           

Despite the state of our economy, and the strife that exists in the world, it's not too late to enjoy life.

Strategy is a Funny Thing

Jack Welch, former Chairman of GE, articulated one of the most famous strategies in business. Paraphrased, it said, “We'll be number 1 or 2 in a line of business, or we'll get out of that business.”

Powerful stuff. There aren't many people with the guts to make that kind of strategic commitment. And that's what that statement is; a commitment to an organization's long term position in a given arena. A clear guideline for all those involved, that their performance and behavior must take into account this future state.

When we listen to our colleagues, clients and prospects use the term “strategic planning”, we wonder what they really mean, because when pressed for an explanation, they usually say that they're working on “next year's goals”. This is not strategic planning. In fact, from our perspective, there is no such thing as strategic planning. One can only formulate strategy. Executable goals bring a strategy to fruition. Executable goals and planning how to achieve them can incrementally lead to the point where a strategy has become the reality. A strategy is too big, too amorphous to get a human head around in the executable sense.

It has been said that poor execution will sink the best strategy. Trying to execute directly on a strategy just can't get the desired results. Generally, it gets poor results and many unintended consequences. Creating a system of organizational goals can get the desired results. One can make plans to achieve goals. Goals are the most powerful tool for human achievement. Goal setting is a technology and an art. It takes into account the realities of the moment and the possible futures.

Peter Drucker said that when making decisions, one must do it with the absolute knowledge that the information being used will probably be obsolete before the outcome of the decision is reached. That's the risk inherent in taking the action required to achieve goals that will support a strategic commitment. It is also why one can not execute directly on a genuine strategy. The time line is too long and the unknowns are myriad.

In our over 30 years of consulting experience, we have learned that small and mid-size organizations can get along without explicit strategy, but not without explicit goals. Goals make it possible to know how the organization is doing compared to what it wanted to do during any given period. Without them, people in organizations concentrate on “activity” and eventually become enslaved by it. (I believe Robert Heinlein said that). Real appraisal of performance can happen when there are goals. Without them, appraisal sessions tend to become a bully pulpit for the manager.

Strategy is a wonderful concept, to be embraced at the right time in an organization's development. The time is always right for goals.

Performance Management - Why Bother?

There is much talk in both the Human Resources (HR) and Technology (IT) press about Performance Management. These two seemingly disparate domains have found at least one commonality: the need to provide feedback to people at all levels in an organization.

Until recently, HR referred to this process as Performance Review or Performance Appraisal. Performance to IT was about computer and network functioning. HR made the switch to indicate more clearly that people needed to be managed and they wanted to know how they where doing at their job. What a concept! IT got on the bandwagon when automation of just about everything was becoming the vogue.

Now, there is a push from the HR side of the equation that is being met by web-based, Software-as-a-Service (SaaS) applications that promise fast, easy, "professional" reviews. Some of these IT organizations even provide the wording for a manager to use in writing review documents. Yuck! I'll say it my way, thank you very much!

Think about this: the two primary reasons to conduct goal driven, objective performance appraisals are 1, to be sure that the people are doing what they need to do to support the organization's vision, strategy and goals; and 2, to provide objective and subjective feedback to people about their performance on the job and support their professional and personal growth. A mutually beneficial process.

The sad fact is that even today, in our "enlightened" society, most small to mid-size organizations don't conduct appraisals of any kind. On the rare occassions that they do, it is usually a one-sided lecture by the manager without consideration of the employee's viewpoint, frequenty ending unhappily for both parties. It doesn't have to be this way. It only takes a system of clearly defined goals and performance expectations, agreed to up front by both the manager and the employee. When appraisal time comes around(we suggest at least twice a year, quarterly is better) there are no surprises.

More on how to get this done in our next issue.

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!

Time for an update. . .

In November of 2007 we gave you an introduction to the birth of GoalTrak^TM. One year later, here's where we are:

          We have 20 client organizations signed on to GT in either the Enterprise or Mentor version.  About 2/3rds of them are actively using the system to enhance performance. The rest of them have apparently fallen victim to what David Byrd of LMI, Inc., in his book “The Tripping Point  in Leadership,” calls “apathy”.

          Last week we launched our newly designed website (www.goaltrak.com). User experience was the driving force behind this effort. Easy to navigate, timely topics, valuable information and attractive. . . “sticky” as the cognoscenti describe it. Visitors spend more than 10 seconds viewing the information.

          We've added several new Consulting Partners, those folks that offer GT as part of their portfolio of solutions to the nagging challenges of managing an organization. We're looking for more.   More people who understand that people and their performance make the difference. And that appreciate the value that GT brings to the table.

          We're currently in discussion with a sizable mid-west school district to bring the GT's technology/art of goal setting to high school students. The primary focus is to be career planning with mentors and students collaborating in the effort.

          Our clients continue to send us innovative suggestions for enhancing the usability and value of GT. We continue to listen and implement those that make good business sense for users and for us. Some of the changes we've made have come from our own experience. Yes, we use the  system to set and track our own progress!

The more users we get on the system, the clearer it becomes that investing the time upfront to really think about what you are trying to achieve, saves a lot of grief down the road. Written goals have always been the difference between consistent success and occasional success. Now, it's even easier to get the job done. . . with GoalTrak^TM EV and GoalTrak^TM CV.

Human Kindness

In their book, “Leading with Kindness”, William F. Baker, Michael O'Malley assert,. . . ”that being kind is a crucial attribute of some of the world's most successful business leaders, leaders whose success is anchored in their integrity, credibility, vision, insight, inclusion, and fairness. And kindness is not some intangible quality that one either "has" or doesn't, it is a combination of quantifiable, learnable, and refinable traits and skills.”

We submit that providing objective feedback on your people's performance in a timely, accurate manner, is kindness. What could be more fair than establishing upfront agreements on expectations and then letting people know how they are doing? How much fairer or kind could one be than clearly articulating the organization's vision and strategy so that people know toward what they are contributing their efforts? How much more credibility and integrity can we have than sharing the profits of the organization with the people whose labor produced it?

Spending 20 years in the textile/apparel industry exposed us to the antithesis of kindness. For the most part, the leaders of apparel companies in the 1950's and 1960's were tyrannical in their approach to management and leadership. Certainly, not all behaved this way, however, we worked with enough of them to get an overall experience that demonstrated kindness was the exception.

Now, consider this: every season these manufacturers had to design new styles of apparel to offer to the retailers. That essentially meant going out of business and going back into business four times a year.  The textile makers had to have new fabrics, new colors, new textures available to support this never ending cycle. The pressure and anxiety this process produced was, (and is), enormous. Who had time for “kindness?”

The above may be an explanation, however, it is not a reason, to be unkind. The shouting, cursing, blustering boss was frustrated by all pervasive “lateness” in the delivery of resources; fabrics, people, truckers, payments, etc. The fear of failure was rampant. He only had a limited window of opportunity to get his apparel into the stores. If missed, the season was lost and so was his investment. The people received the brunt of this frustration and fear. Still only an excuse, not a reason.

Raised in this environment, the lessons stuck, sort of. When we left that industry 30 years ago and built a sizable organization development consultancy, we behaved in a similar manner. Old habits are hard to break. We eventually did break them and our clients and our people were the beneficiaries. . . as were we and our children. Today, the generations of “X, Y and perhaps Z” will not tolerate that type of behavior.

The success of an enterprise is dependent on those who show up every day, whether in person or via telecommuting. Treating people with respect and allowing them to always retain their human dignity is the only way to ensure long term organizational viability. Kindness is a fair price to pay.

-RSL

The Human Condition

We were in sunny, downtown Waco, TX last week. Talk about hot! The street asphalt was melting under our shoes! But I digress.

The purpose of the trip was business with a group of people,  some of whom we've had  relationships with for over 30 years. As always, it was a treat to see them and be seen. We laughed and learned, told stories and bought and sold stuff. We met a few new people who had just come aboard, welcoming them with our usual irreverence.

During the closing session on Saturday, we were told by one of the old timers that he was leaving the fold for a new career after 23 years. It was a complete surprise. Not a clue before hand.

Much to my surprise, tears welled up. We were emotionally shocked. Many an eye in the room was wet. His voice was quavering as he delivered the news. Even though he was 2000 miles away from us 98% of the time, a bond had developed that went much deeper than we knew. Our common purpose had penetrated our beings quietly, without fanfare.

Our colleague's new career will take him physically to a place less than a mile from his current work location. It will take him spiritually to a place he has wanted to go for many years. He has achieved a long standing personal goal. We don't know if there will be any more actual contact, however, we do know that the bond will forever be there.

Such is the human condition.

-RSL

Running the Business or Managing the Organization

Two distinctly different efforts, requiring two distinctly different skill sets. When it comes to systems, procedures, methods, and executing, the tools are also different. In our marketplace, the small to mid-size business(SMB), frequently the same people are responsible for both efforts.

            Running the business is generally a “concrete”, tangible process: make sales, process orders, deliver the goods and collect the money. Lots of minutia, requiring day-to-day attention and an eye on the details. Whether product or service, these same basics of business apply.

            Managing the organization requires much more of the human, cerebral touch. Articulating a Vision, formulating strategy, building goal systems, managing group and individual performance, are people centric, conceptual processes.

How does someone with a linear thought process, that is, someone who is comfortable with tangibles and facile with spreadsheets and the like, effectively deal with the challenges of visioning, conceptualizing a picture of some future state? How do they handle the fuzzy process of formulating a strategic direction to support that vision? In our experience, not very well. Conversely, the conceptual thinker is hard pressed to steep him or herself in what they may consider the mundane activity of financial controls or production statistics. This disparity is one of the primary obstacles to growth in entrepreneurial organizations. Few people are well equipped to handle both domains well. Too much “stuff” begins to fall through the cracks.

There are no easy solutions, however, there are approaches which mitigate the negative impact on the organization and don't leave too much detritus lying around.

Support for these inextricably intertwined activities requires the support of financial, customer, vendor, sales and a plethora of other industry specific systems. Today, much of the painful gathering of data and crunching of numbers is handled by software. They can be stand alone “point specific” applications, i.e. financial/accounting, sales/CRM, HR, project management, etc. Or they may be part of a suite of applications designed to seamlessly interface with each other. They can be accessed either from the organizations own servers, from the users' desktops, or via the web as Software as a Service (SaaS).

Our unscientific research turned up more choices than one needs for “running the business” functions. And they are available in myriad flavors, from single user to enterprise versions; from desktop based to SaaS.

The breadth and depth of alternatives is limited, however, when one seeks to find electronic tools for “managing the organization”. The types of access are the same; the choices are few. From our perspective as organization consultants, we wonder why so little attention is paid to the “up-front, decide who we are and what we want to achieve” aspect of business in general.

There's plenty of talk about helping sales people track their activities; about accounting outcomes; about shop floor/office productivity; about customer service. There's comparatively little said or done about high level, future thinking, leadership focused solutions in the software domain. We offer one solution. The world of business needs more.

-RSL