Big Important Things – risk and opportunity identification

“Big Important Things” (BITs),  are local, regional, national or international circumstances or events that cannot be controlled or prevented, that have a significant effect on current and future business practices.

One should always keep in mind the impact of the “Big Important Things” (BITs) on the supply chain, customers, the competition and your industry.

Those involved in strategy and planning must understand how BITs create enormous risks and opportunities.

One can only react to BITs, they cannot be created or eliminated by an organization.

BITs would include, but not be limited to:

• Natural and man made disasters – hurricanes, fires, earthquakes, explosions, flooding.
• Massive economic changes – depression, recession, inflation, currency devaluation, massive layoffs
• War and Terrorism – security measures, logistics, international trade limitations
• Government policies – trade barriers, laws and regulations, economic sanctions, embargoes
• New technologies, – trends and tendencies inside and outside of the industry
• Environmental or health issues – contamination, unsafe products, epidemics
• Legal issues – pending or current lawsuits, documentation and reporting, legal precedents
• Significant global changes in demand or supply – shortages, increased demand
• Energy costs – trends and tendencies

Contingency plans should be created, worst-case and best-case scenarios developed, and efforts made to lower the risk profile or strategically position the company to take advantage of possible changes in the business environment.

How to use BITs to identify areas of risk and opportunity 

1. Analyze each of the following elements independently;  strategic raw materials, suppliers, logistics, major customers, the competition, your company, and finally your industry (local, national and internationally).
2. What is the probability that a BIT would affect each element (impossible, low, medium, high, inevitable) and when (short-medium-long term)?  “My supplier is the only manufacturer in North America of the widgets we need, they are located on the western Florida coast and annually are affected to some degree my hurricanes and flooding.  There is a high probability that a major hurricane will hit them in the short to medium term.”
3. Use a “what if” line of questioning for those high risk or high impact areas.  “What if a major hurricane hit my supplier and disrupted their production?
4. What are possible scenarios to reduce your risk, or take advantage of the opportunity.  “Do I have alternative suppliers in place, extra inventory, insurance, how can I protect my customers, who else will this affect and how?
5. Review this process at least twice a year to take into account changes in the probability of the BITs and modify the contingency plans or strategies accordingly.

Related Links

Analyze and Plan Using 7 Simple Questions

How to Systematically Analyze Any Situation for Better Decision Making

9 Steps to Better Decisions

The 3 Y’s – help for difficult decisions

An organization’s management and leadership team is responsible for making timely decisions, supplying and applying resources when required, in order to efficiently reach known or perceived goals and objectives.

In order to make these decisions; research, information and analysis of the pertinent information is required.

Here is where management bogs down or leadership can make serious misjudgements.

• Poor incomplete analysis or lack of the critical information required to assess the risks, obtain the required resources or understand the probable benefits.
• Lack of understanding of the changes or resources that the decision will provoke.
• Making the decision too early, or too late.

A quick and useful trick is to apply the “3 Y’s” to assist when faced with a difficult decision.

The “3 Y’s”

• Why Me?
• Why Now?
• Why Not?

The First Why – Why Me?

• Who is requesting that I make the decision? Why?
• Is this in my area of responsibility? Why?
• Is this my area of expertise, do I know what I’m doing? Why?
• Do I have enough key information to make the decision? Why?
• Can I obtain more information, in how much time and at what cost? Why?
• Do I understand the analysis of the data and the conclusions? Why?

The Second Why – Why Now?

• Does this need to be done or decided now? Why?
• Is it in response to an emergency, part of “normal” operations or a change in strategy and objectives? Why?
• Who depends upon this decision or is affected by it? Why?
• Should the involved parties be informed of how the decision will affect them? Why?

The Third Why – Why Not?

• What happens if I don’t make the decision? Why?
• Are there other options, solutions, or alternatives? Why?
• Do I think this is the best solution or decision available? Why?
• Do I fully understand the short term and long term effects on resources, customers, work systems, goals and objectives that this decision will provoke? Why?
• Who are the internal or external “experts”, what is their recommendation? Why?
• How far am I putting the organization at risk with this decision? Why?
• Are there metrics to measure or contingency plans in place in case this does not go as planned? Why?

By reacting and making difficult decisions without reflecting on the WHY we miss identifying the real problems and issues.

We miss solutions and strategies.

We miss opportunities to unify and support the organization.

We find ourselves responding to symptoms and not solving or responding to the core issues.

Related Links

Can’t make a decision

9 steps to better decisions

Stop worrying and start thinking

 How much time is scheduled for thinking in your normal business day?

Do you have a regular time when you take the phone off the hook, avoid interruptions and think about business situations and problems or create plans?

Do you often worry about past, present and future business decisions?

This quotation from Harold B. Walker Think or Worry
might provide some motivation for you to include some time for reflection and thinking into your workday.

“Thinking works its way through problems to conclusions and decisions, worry leaves you in a state of tensely suspended animation” (H.B. Walker)

Get the subject out in the open, describe it, observe it, analyze it, understand it.

Think about it.

Create solutions or action plans to deal with the reality and stop worrying about it.

“You can think about your problems or you can worry about them and there is a vast difference between the two.” (H.B. Walker)

Related Links

Can’t make a decision

Think or Worry 

Putting change into perspective   

Can’t make a decision?

 There are times our decision-making is stalled due to fear of making the wrong decision.

Next time you’re in that indecisive state of mind, answer these questions and see if it pushes any buttons to move the process forward.

1. What is the “best case”desired outcome?  Will your decision move you toward that outcome?
2. What is an “acceptable” outcome?
3. What is the worst thing that could possible happen if you make the “wrong” decision?  Can you accept this?
4. Is your decision reversible?
5. Will a wrong decision destroy value, confidence or trust of anyone involved?
6. Do you have enough information to make the decision?
7. Do you have too much information?
8. Who knows more about this subject than you….what are their recommendations?
9. Are you the right person to be making this decision?
10. Will avoiding making a decision now make the situation better, worse or have no effect?
11. Does the decision provide a short term fix or will it solve the problem permanently (long term)?

Related Links

How to systematically analyze any situation for better decision making

Why don’t they?

9 steps to better decisions

How we react to unethical actions and behaviour

There are a number of reasons why individuals and organizations refuse to perform in an ethical manner or raise their voice against unethical behaviour.

6 Reasons why we don’t object to unethical actions or behaviour.

1. Ignored and Ostracized. We will be eliminated from the “group”. Showing opposition to an idea that was created by someone with power or the power of persuasion can result in being ignored and left out of future decision-making.

2. Fear. Not on board with the company philosophy? You might get fired. Fear of unfavorable personal consequences.

3. Demoted. Will lose power, prestige, and income if you speak up or oppose the idea or practice.

4. Insecurity. Perhaps we are not sure if the means justify the ends. Inability to clearly see the situation as unethical or wrong.

5. Reward. We see a payoff (money, power, prestige) that overwhelms our sense of ethics. Justifying wrong in order to receive personal gain.

6. Lazy or uncommitted. Unwilling or unable to challenge the group or idea.

5 Reasons why we should speak up and question unethical actions or behaviour.

1. Be true to yourself. Stand up for your own beliefs.

2. Be a leader. Others in the group might believe the same thing, but are timid or afraid of voicing objections. Create a dialogue and open a discussion of the issues.

3. New point of view. The group might not have thought of the consequences, or not see the situation as an ethics related decision. Open their eyes.

4. Protect the organization. Your intervention might save the organization from scandal, embarrassment, legal and financial problems.

5. Clarify. If you are unsure, voice your concerns and let the group present their case in order to clarify and resolve any doubts that you might have.

Related Links

Is your company noble, moral, ethical or virtuous

Sales and marketing terrorism 

Corruption, bribes, mordidas and tips – Doing business in Mexico

Where do you draw the line

Don’t find a solution, find a way to make it better

We make a large error in our business and personal lives if we believe that every problem or situation can be solved immediately or in the short term through our decisions and application of resources.

Theoretically it’s possible, but our focus on solution instead of optimizing and making changes to make it better can blindfold us toward evolutionary processes that in the long term provide better, stronger and long lasting solutions.

I’m suggesting that every situation should be initially evaluated based on two basic criteria; can it be solved now, or can it be improved now.

The situations that can be solved now or in the short term, should be. The organization should dedicate the time and resources toward the solution.

An example would be a delivery service that has 3 trucks and cannot cover the current delivery area on-time due to an increase in customers and package volume. A possible swift solution would be the purchase of another vehicle and hiring of a new driver.

A situation that cannot be solved now or ever should be approached by identifying areas where improvement should be made. The time and resources of the company should be focused upon the improvement.

An example would be government’s attempt to eliminate poverty or disease from a population. A perfect solution is not possible or practical, but by focusing on specific areas one can find great opportunities for success or enormous impact (vaccinations for children against polio).

When we look at every situation as a problem that needs to be solved right now we may be missing the best solutions and strategies required to resolve the situation over the long term. Ask yourself:

• Can we solve the problem quickly and efficiently with simply modification of variables or a shift in technology? If the answer is yes, then set the process and resources in motion.

• What if the problem is not able to be solved quickly or has no practical or economically viable solution? This is where the approach of resolving and modifying parts of the problem comes into play.

This evolutionary approach to problem solving is not often requested or expected in business (the quick fix is always applauded and sought after), but often the best long term strategy is optimization and gradual modification.

This evolutionary problem solving process will provide new opportunities for change and solutions to be developed in the future.The identification of areas, processes or resources that are the bottlenecks in your organization become areas of opportunity.

Modifying and improving these bottlenecks will automatically create new bottlenecks, in new areas. The focus on identifying and solving these “new” situations leads to a process of continual improvement and a better, stronger organization.

This is one of the fundamental ideas behind the Theory of Constraints (TOC).

Common sense tells us that in a complex world not all solutions are simple, quick or painless. The “quick fix” is a great idea, but not often found in everyday life.

Observation of science, technology, philosophy and business ideas and strategies show us that change occurs through the rare revolution (paradigm shifts and new discoveries) and through the more common evolution (gradual modifications leading to continual change.

What can be changed, fixed or modified today to make the organization, process, product or service incrementally better?

Related Links

Why don’t they?

Starting over

How to systematically analyze any situation for better decision making

AGI Institute – Theory of Constraints

Evolution (Disambiguation)

The point of no return

The hardest part of decision making is passing the “point of no return“.

While the situation is being analyzed we’re safe.

Wacky, imaginative and wild solutions can be discussed and their impact and effect weighed and discussed. But it’s theoretical, it’s safe.

The minute we have to make the decision, take responsibility for the action and outcome, then we enter into scary territory.

The key to decision making is to get the momentum, confidence, courage and motivation in order to pass the point of no return.

I’m not saying that your decision will always be correct. But what is important is to make a decision and not spend hours, days and weeks agonized and postponing the process and decision.

Picture yourself on a diving board. High above the water. It’s scary to think that you may not perform the dive perfectly. A belly flop would be embarrassing and painful.

There are three options available.

1. Stay where you are, agonizing over the decision to jump.
2. Go back down the ladder, let someone else jump.
3. Jump.  Leave the diving board, cross the point of no return, make the dive.

When we are sure of our abilities and understanding due to good research and experience, we have confidence.

When we are not afraid of making a mistake, we have courage.

When we know the decision is important and necessary in order to keep things moving and get on with other activities, then we are motivated.

Focus on the task and problem, create the solutions and make the decisions on time.

Push yourself to pass the point of no return quickly and with confidence.

Jump.

Related Links

Why do we fail

Motivation – Heroic Moments

Decision-making, how they used to do it 400 BC

How to systematically analyze any situation for better decision making

Why don’t they

How many times have you heard, or said, “why don’t they…….”

In the office it seems that everyone not directly involved with the decision making has the answers.

How many times have you heard:

• Why don’t they just change or modify the process.
• Why don’t they just lower the price.
• Why don’t they give the supplier an ultimatum or find new suppliers.
• Why don’t they give us the power to make decisions.
• Why don’t they simplify the procedure.
• Why don’t they hire an expert.
• Why don’t they fire them.
• Why don’t they do the right thing.
• Why don’t they listen to us.

The next time you start with “why don’t they” stop and do the following.

• Ask yourself what can YOU do to implement or bring your solution to the attention of the decision-makers.
• Do you really understand the problem, it’s causes, consequence and secondary effects?
• Do you have enough information to make an informed decision?
• Have you mapped out the chronological actions (and costs) required to implement the solution?
• What are the risks involved? There are risks associated with failure and with success, how can the organization prepare for those changes?
• Have you told, written or explained your solution to the decision-makers?
• Take action and do something about it.

An organization is strongest when everyone participates, and not necessarily when everyone participates in a linear and orderly manner. Your idea may have been missed in the analysis.

Good ideas and possible solutions are welcome (or should be welcome) at all times.

If your comments, solutions and ideas are limited to informal gripe sessions around the water cooler, it’s time to start writing them down and pushing them forward.

 

Stop waiting for someone else to do it, step up and let your voice be heard.

Related Links

Starting over

Analyze and plan using 7 simple questions

Why do we fail

Leadership lesson – A Message to Garcia

The Power of Something Extra

Starting over

Ever get involved in a project that requires modifications, and then those modifications led to more modifications and more and more?

Before you know it, the project has lost sight of it’s objectives, and the team is working on solving problems unrelated to the original goals.

I’m reminded of Rube Goldberg and his famous machines. We don’t intentionally try to complicate our work, but if we step back and look at the objectives, and the current processes and procedure in order to reach those objectives, we can often find distortions and diversions of comical proportions.

There are two simple actions that will eliminate and control our spiral into complexity and error.

1. Step back and look at the problem, objectives and current procedures on a regular basis. What is working, what isn’t working, and why? What are you doing to modify or adjust the solution procedure or process instead of moving closer to a solution?
2. When you discover that something is not working, and have analyzed why, don’t be afraid to START OVER. Throw out the current plan, and begin again.

We tend to avoid re-doing and restarting a project or activity because we want to salvage the time, money and effort that has been invested.

This inability to “do over” and start from scratch often prevents us from implementing better and more efficient solutions.

Our initial attempts to solve the problem have educated us about the requirements and environment. There is nothing wrong with starting over, in fact it may be the best and most efficient way to solve the problem.

Related Links

12 reasons why we ask for business help

Analyze and plan using 7 simple questions

How to systematically analyze any situation for better decision making

9 steps to better decisions

Rube Goldberg Website

Why do we fail

No one likes to fail.

We can feel foolish, outmaneuvered, incompetent, insecure, unlucky, silly, angry, overwhelmed, frustrated and in some cases afraid to try again. after suffering a defeat.

Failure is an integral part of the learning process.

Failure is required in order to become successful.

Rare is the successful individual, product or organization that has not met adversity, failure, defeat and loss.

One of the keys to success is the ability to accept failure, learn from the experience and try again.

The fear of failure is so great in some organizations that it freezes innovation, thwarts change and stifles growth.

Organizations try to reduce or limit failure by passing on historically successful methods and accumulated knowledge to new members.

Many times this information is not useful and out of date because the elements, players and dynamics of today’s challenges are quite different from those of the past.

Use the following list to analyze your current projects (and possibly prevent or limit failure), or use the list after a setback or defeat to identify where you can improve.

Reasons for business failure can be broken into 4 main groups:

Planning

• No plan
• Incomplete plan
• Wrong calculations
• Poor or incomplete interpretation of data and research
• Failure to take into account all factors
• Lack of experience
• Failure to evaluate competitor reactions correctly
• Failure to anticipate consumer response
• Significant difference between planned and actual costs
• Poor cash flow calculations
• Unrealistic goals and expected outcomes
• Underestimate risks

Information

• Didn’t collect all the pertinent information for planning
• Product or service was not wanted or needed by customer
• Lack of knowledge of market
• Lack of knowledge of customers
• Lack of experience in the industry
• Lack of experience in manufacturing
• Lack of experience in sales and marketing
• Lack of experience in administration

Operations and Follow-through

• Lazy, didn’t do the work required
• Undisciplined
• Unorganized
• No control of suppliers
• Did not stop in time and take corrective actions
• Did not recognize warning signs
• Ignored warning signs
• Did not seek professional assistance
• Lack of attention to logistics details
• Failure to focus on customers needs, desires and wants
• Poorly trained personnel
• Lack of initial capital
• Not enough capital to maintain operations for first years

Factors outside of our control

• Important changes in technology
• Environmental factors
• International, Federal, State or local government laws, regulations and legislation
• Aggressive competitor(s)
• Act of God
• Change in fashion and trends
• Theft and fraud

Related Links

Leadership lesson – A Message to Garcia

How to systematically analyze any decision for better decision making

10 things you should never do on a Friday afternoon

9 steps to better decisions

The power of something extra

“Here is a simple but powerful rule – always give people more that what they expect to get.” – Nelson Boswell

What defines an exceptional leader, a great manager, a super business, or remarkable experience? Something extra.

There are two words (one French and the other Spanish) that convey and represent the concept of something extra, lagniappe and pilon.

Lagniappe (hear it) is the word commonly used in Southern Louisiana and Mississippi. It’s defined by the American Heritage Dictionary as an extra or unexpected gift or benefit.

Pilon is the Spanish word used in the southern US and Mexico to describe a gratuity given by tradesmen to customers settling their accounts, it’s something extra, and not expected.

Incorporating something extra in our actions, results and as a business philosophy can be incredibly powerful.

Something extra:

• forces creativity and innovation.
• demands clear understanding what is expected of us by others.
• focuses our attention of adding value, and not on cutting costs.
• is positive.
• is rewarded with good will and positive reactions.
• will lead to continual improvement.
• is fundamental to continued success.

Something extra is all about the little things and details.

Something extra is not just something “free”, it must arrive without anticipation, unexpectedly in order for it to be special and make an impact.

Something extra allows you to surprise the customer.

Something extra will make think about your results and expectations. It will make the difference between simple compliance and outstanding results.

Something extra will make you and your results different from all the others.

Embracing something extra and applying it on a daily basis, will make you great.

Giving something extra is not a difficult task. It’s all about applying small acts of innovation and creativity to your results, especially for routine and day-to-day tasks.

The power of something extra can change your life, your products, your processes and how others perceive you.

“If you want to be creative in your company, your career, your life, all it takes is one easy step… the extra one. When you encounter a familiar plan, you just ask one question: What ELSE could we do?” – Dale Dauten

Related Links

Motivation – Heroic moments

What defines an exceptional leader

Analyze and Plan using 7 simple questions

Who – What – When – Where – Why – How – How much

Project management, organizing a team, writing a business plan, creating strategies, planning meetings, running day to day operations, general analysis and problem solving can be facilitated and improved by using a simple application of 7 basic questions.

The application of the standard reporters’ questions of who, what, when, where, how and how much to a specific situation will help organize the process of analysis and planning.

In order for this system to work, all the questions and answers should be written down. You’ll be building a visual map while defining the objectives, tools, resources, bottlenecks, time limits and chronologies of the problem. It will become clear what the real goals are, what is required, what is missing, who should be involved and when the tasks should be accomplished.

Who – Who is or will be affected by the decision or process? Who are the participants? Who will be involved or affected in some way by the project?

What – What are the objectives and desired results? What is the problem or challenge? What are the options available? What tools are required?

When – When is this supposed to happen? Define the deadlines, time limits and chronologies.

Where – Where is it going to happen? The physical place or space should be defined and examined.

Why – Why are we doing this? Why are we doing it this way or by this procedure? Why is it occurring?

How – How are we going to do it? The mechanisms, requirements, and processes needed in order to achieve the goal.

How much – How much is it going to cost?

Example – You are asked to give a speech on the sales results in Mexico for the last quarter for the upcoming Board of Directors meeting on January 10.

Who – The audience is the Board of Directors. The sales department, marketing, logistics and finance departments have the numbers and explanations of the results. Who is responsible for the agenda, audiovisual set up, room reservations? Are any other members of the company required to attend the presentation? You are the project leader and responsible party for the presentation.

What – The presentation is directed at the Board of Directors, they want to hear about results, expectations and strategies of the sales in Mexico. What questions will they ask, what aspects of the business will be of interest or concern? What information is important?

When – The meeting is January 10. You’ll need all the pertinent sales information by what date? It has be polished into a concise presentation by what date?

Where – The meeting will be held where? How big is the room, what equipment will be required for the presentation.

Why – Why do they want to review this information, is there a problem, is it routine? Why me?

How – Will you give a visual media presentation along with documents? What graphics will you show? Will you be the only speaker? Will the presentation style be serious, upbeat, creative or different from other presentations?

How much – Do you have a budget for the presentation and required materials? Do you have to fly in the Mexican sales representative to be present at the meeting? Do you have to rent equipment, hire caterers or provide refreshments or coffee service?

Related Links

How to systematically analyze any situation for better decision making

9 steps to better decisions

Successful managers should be breaking the rules

Hell, there are no rules here – we’re trying to accomplish something. Thomas A. Edison

I’ve found the most successful and exciting environments to work, study or play in are those with “no rules”. Environments that are open and flexible and not strictly controlled with things you can’t do. It’s exciting to be in these situations, inspiring, sometimes a bit scary, but always memorable.

Rosa Say has a brilliant read for all managers about how the use (or abuse) of rules often limits our creativity and enthusiasm. What are the Rules? Hopefully, none.

• “No rules” requires clear objectives and goals.

• “No rules” requires planning.

• “No rules” requires discipline and commitment.

• “No rules” demands responsibility for actions and outcomes.

• “No rules” is about inventing process. Creating and forming the process required, or desired, in order to get the job done and reach the objective.

• “No rules” is about allowing creativity and innovation into every decision that brings us closer to our objectives.

• “No rules” is about questioning the status quo in order to explore new and different solutions and methods.

• “No rules” is about accepting and integrating new ideas.

• “No rules” is about tolerance and examination of new concepts.

• “No rules” is about getting excited and energized by every life or work experience.

If you tell people where to go, but not how to get there, you’ll be amazed at the results. George S. Patton

It is good to obey all the rules when you’re young, so you’ll have the strength to break them when you’re old. Mark Twain

Related Links

What are the rules? Hopefully, none.

5 ways to promote creative thinking and idea generation

Is your boss a prison warden or party host?

Questioning the wisdom of crowds

Businesspundit has commented (Link) on a piece from Inc.com entitled The Idiocy of Crowds.

Both authors are questioning the interpretation and application of the ideas presented in the book, The Wisdom of Crowds, by James Surowiecki. Surowiecki proposes that many times the group will make better decisions and assumptions as compared to any given individual of that same group.

There are very different and distinct situations and opportunities where groups may outperform individuals and vice versa. There are also fundamental differences in focus, attention and willingness to accept risk, that will significantly affect the outcome of the decision or prediction.

Predictions and Opinions. The use of groups in opinion polls and prediction markets is indisputably more accurate than an individual prediction.

Evolution vs. Revolution. A group or crowd will more often choose evolution (safe, slow, predictable change) over revolution (rapid, drastic, unknown consequences). This favors group stability and leads to incremental changes of the status quo. Decisions of this type are much more easily accepted, embraced and implemented.

New ideas and concepts. Creativity is not favored or accelerated in groups as compared to individuals. Paradigm changing concepts and ideas, leaps in technology, philosophy and science are usually created by individuals.

Human Nature and Teams. Teamwork and working in groups is part of human nature. We are social creatures and business requires the majority of us to work with others. The group interaction and final outcome may be limited or significantly reduced when compared to individual results. The decisions will be accepted and the entire group will support it.

Current business trends are focusing on innovation, and developing processes that allow us to implement innovation systems and to create the methodologies that will assist us in the creation of innovative solutions. It’s natural that we should begin to examine how decisions are made, their innovative or creative component, who makes them, and who makes the correct decisions.

The questions and discussions created by the ideas presented in The Wisdom of Crowds are what is important. Which situations are better served by individual ideas and opinions to find solutions? When should we be using “crowd-think” and groups to assist us in decision making or with our predictions?

Related Links

Businesspundit: The Idiocy of Crowds

Inc. What’s Next: The Idiocy of Crowds

There are no new management and leadership ideas

Decision-making, how they used to do it 400 BC

Showtime – how do you want to live your life?

I’ve had limited experience in show business. The highlights of my entertainment career include the magic show I produced and starred in at age 8, various band performances, and a walk-on supporting role as a wise man in a Nativity play. Oh wait, I forgot to mention, my biggest show business role. I was involved in retail sales.

Retail sales can be a limiting and brutal environment, physically and emotionally. But it is one of the best environments for learning and practicing how to perform with and for others.

Retail sales is all about people, it is not about merchandise. Listening to what people want and helping them find it. You are performing all day, and when you realize this, it can be an exhilarating and fun experience. You can prepare, rehearse and modify your performances daily.

What am I talking about? Performing? Exactly. If you assume the role of an enthusiastic, informed and helpful person you can give something to each person you encounter during the day. You will feel great about yourself and the client or co-worker walks away with an unexpected gift of meeting and connecting with a positive human experience.

I was involved in the fresh flower industry. Olga and I opened a “bucket-shop”, which at the time was an innovation, and dedicated ourselves to making every customers experience distinct and important.

No one buys flowers because they have to. They are sought when one wishes to celebrate a birthday, anniversary, birth of child, graduation, religious holiday, or wedding. They might be using the flowers to recognize an illness or death, as a thank you, to recognize a special person, to say I love you or I’m sorry, or as a emotional pick me up.

Flowers are objects that represent an emotion. Customers were not buying flowers. They were seeking a symbol of their feelings or the feelings they wished to transmit. Isn’t that true about most consumer items?

Understanding this, how can you NOT be enthusiastic about coming to work and giving your best performance?

During the time clients were in our environment, we were part of their search to represent their emotions, our advice was of great importance in order to find the right symbol, the perfect flowers. It was much more than a commodity transaction.

It’s important to recognize that false enthusiasm isn’t going to work. You have to believe in yourself, your abilities and knowledge. You have to believe that you are going on-stage everyday, and that your “performance” has to be genuine. You have to listen to the people around you, and determine what they are really seeking, and help them get it.

People used to stop in and visit us to get a shot of enthusiasm and positive attitude. There was always a smile, a greeting. The environment was light, fun, open, accepting. It was an amazing experience for us and for the clients. We gave a positive attitude, and customers gave us back more positive attitude.

All it took was our dedication to providing the best “performance” we could manage, everyday, no matter who was in the audience.

It’s “showtime” in your life every morning (remember Rob Schneider’s performance in “All that Jazz”?). It’s your decision to assume the role you are going to play. Will it be the angry, grumpy, distracted, negative you? Will it be the upbeat, enthusiastic, focused you?

It’s “showtime” right now.

It’s always “showtime”.

Related Links

Change your life – change your attitude

Passion – Enthusiasm – Common Sense?

Motivation, what gets you out of bed?

Re-inventing the job interview

I’ve been monitoring with great interest the idea and reactions to Seth Godin’s post The end of the job interview. He questions our current job interview process and proposes an interesting alternative.

Perhaps it’s time to take a hard look at our hiring and interview processes. Are they serving our needs and requirements or creating future problems?

Reinventing the job interview and hiring process makes perfect sense when we reflect that it was developed for a 20th century workforce that consisted primarily of manufacturing laborers.

The 21st century, brings an abundance of knowledge workers and forces us to ask what is the best method to determine if they are right for our organization. The interview and process required in order to understand the potential employees abilities are very different for knowledge workers.

The top leadership and management jobs in our companies have always been filled by candidates that have come with recommendations from other companies or executive networks. This provides a certain level of security that they had the skills in the old job, but no guarantee they will succeed in your organization and corporate culture in the future.

We are already seeing a shift in how we hire and select candidates. The use of networking and on-line social networks are allowing job seekers and employers access to individuals (at all levels of the company) who come with a certain degree of “recommendation”.

Dr. Ellen Weber has added her opinion to Seth’s ideas at Brain Based Business. Her piece Seth wants to bury job interviews for his own alternatives adds scientific and psychological perspectives as to why or why the concepts might just work.

David Maister lends his voice to the discussion with a resounding “I’m of the belief that the overwhelming majority of recruiting interviewing is a complete waste of time.“ In Screening for Character he argues that we should be hiring attitude and character, and our goal in the hiring process is to identify these traits. But there is a catch. We are not trained to do this. He suggests that candidate recommendations from others that we respect and trust are our current best method to assure “success” in the hiring process.

It’s a profound, extensive and obviously well known dilemma in our society and organizations. We know exactly what’s broke and not working well.

Now, who knows how to fix it?

Change your life – change your attitude

“What we see depends mainly on what we look for.” – Sir John Lubbock

Creating and maintaining a positive attitude is the most efficient and low-cost investment one can make in order to change their life. A positive attitude is a habit and must be learned through repetition and conscious effort on your part.

A positive attitude is not dependent upon your genetic composition. It depends upon your decision to face your world with enthusiasm and to create a positive environment.

We are faced with millions of challenging situations throughout our personal and professional lives. Many provoke physical or emotional pain and suffering. Can you tell me which of these situations will be made easier by being depressed, critical, bitter, angry or apathetic? None of them.

By accepting the reality that we will be faced with many challenges in life, and that we must seek solutions, it becomes obvious that creating and maintaining a positive attitude can only help us. Our problems remain the same size, it does not matter if you react with bitterness or enthusiasm, it doesn’t change the problem.

What we alter with a positive outlook, is our ability to accurately measure the situation and create appropriate solutions. If you choose to maintain a positive attitude you are no longer a helpless victim of circumstance, but an active participant in the creation of opportunities and solutions.

• A positive attitude stimulates creativity and creates opportunities.

• A positive attitude is one of the fundamental core characteristics of successful people.

• A positive attitude will change the way you feel about yourself, your family and your job.

• A positive attitude will change the way you approach and solve problems.

• A positive attitude will inspire and energize others.

• A positive attitude will affect internal physical and psychological processes that eventually will materialize in your actions.

• Don’t confuse a positive attitude with extreme optimism. You should create and maintain a positive attitude while being realistic about your situation. It’s not about closing your eyes to the negative and ignoring the problems in our lives. That would be foolish.

• It’s all about chosing to be enthusiastic and cheerful, and dealing with the world around us with energy and the desire to do the best we can, all the time.

“When you choose to be pleasant and positive in the way you treat others, you have also chosen, in most cases, how you are going to be treated by others.” – Zig Ziglar

Putting change into perspective

We all understand that change is a part of our life. We’re physically changing, our environment is changing, our relationships are changing, the whole universe in changing.

How can we successfully survive and prosper in an environment that is constantly evolving, moving and changing?

How do we reduce and eliminate stress and indecision from our lives?

Change does not have to take us by surprise. It does not, and should not be thought of as a negative force. We can plan, prepare, adjust and create strategies that allow us to feel comfortable, reduce stress and look forward to change.

Change Options

• Predict the change before it happens
• Control the changes, limit the velocity or magnitud, guide and channel the change to fit your objectives
• Create and provoke the changes
• Embrace the changes, go with the flow, adapt and enjoy
• Ignore change, the “head in the sand” treatment, pretend it doesn’t exist or isn’t happening.
• Observe and analyze change, identify the factors that caused the change and study the effects.

Life is all about change. Growth is optional. It all depends on you.

How to systematically analyze any situation for better decision making

The ability to analyze and make decisions is one of the most important qualities of anyone in a leadership and management position.

How to systematically analyze any situation

• What does the information I have really mean or reflect?

• What are the questions I should be asking in order to increase my understanding of the situation?

• Who are the people who have the information and answers to my questions?

• Ask the questions and accumulate the required information.

• What are the fears, expectations, limits and points of view of the involved parties?

• What have I learned, and what am I going to do about it?

Example: Imagine that your salesforce reports that customers are demanding delivery of your products to their store two times a day, at 9:00 AM and 4:00 PM, instead of the current delivery schedule of 3 times a week. What do you do?

Begin the analysis.

What does this mean? The customers needs or desires have changed. Our salesforce has detected a change in the marketplace.

What questions do I need to ask to understand this? Why is the customer requesting the change? Who requested the change, is it driven by costs, lack of inventory space, new management, competitors? What do our people think about this? What customers are requesting the change?

Who are the people with the information and answers to my questions? Your sales-force and logistics department. The CEO, purchasing managers and warehouse managers of our customers. Who is going to contact them and get more exact information about the situation?

Expectations and points of view of those involved? The sales-force knows that without this change they will lose customers and market share. The customer’s executives and purchasing managers have found an method to reduce inventory and stocking costs with your competitor. The warehouse managers are losing personnel and control and are unhappy. There are significant costs associated with implementing and operating the program. Your competitors are aggressively investing in order to take away your market share.

What have I learned and what am I going to do about it? You discover that a competitor is providing deliveries twice a day, and stocking the customers shelves, reducing costs for the customer. They have made significant investments in trucks and personnel in order to provide this service. Your top 20 customers are affected now. Failure to provide equal or improved service will result in the loss of the customers and your market share. It’s time to bring in the company decision-makers and create an appropriate solution and response.

Related Links

Was Peter Drucker right, is it all about attitude?

9 Steps to better decisions

20 challenges faced by a family owned business

Every business organization has a unique set of challenges and problems. The family business is no different. Many of these problems exist in corporate business environments, but can be exaggerated in a family business.

Family business go through various stages of growth and development over time. Many of these challenges will be found once the second and subsequent generations enter the business.

A famous saying about family owned business in Mexico is “Father, founder of the company, son rich, and grandson poor” (Padre noble, hijo rico, nieto pobre). The founder works and builds a business, the son takes it over and is poorly prepared to manage and make it grow but enjoys the wealth, and the grandson inherits a dead business and and empty bank account.

Prepare now and help your grandson avoid the poorhouse.

20 challenges for the family business

1. Emotions. Family problems will affect the business. Divorce, separations, health or financial problems also create difficult political situations for the family members.
2. Informality. Absence of clear policies and business norms for family members
3. Tunnel vision. Lack of outside opinions and diversity on how to operate the business.
4. Lack of written strategy. No documented plan or long term planning.
5. Compensation problems for family members. Dividends, salaries, benefits and compensation for non-participating family members are not clearly defined and justified.
6. Role confusion. Roles and responsibilities must be clearly defined.
7. Lack of talent. Hiring family members who are not qualified or lack the skills and abilities for the organization. Inability to fire them when it is clear they are not working out.
8. High turnover of non-family members. When employees feel that the family “mafia” will always advance over outsiders and when employees realize that management is incompetent.
9. Succession Planning. Most family organizations do not have a plan for handing the power to the next generation, leading to great political conflicts and divisions.
10. Retirement and estate planning. Long term planning to cover the necessities and realities of older members when they leave the company.
11. Training. There should be a specific training program when you integrate family members into the company. This should provide specific information that related to the goals, expectations and obligations of the position.
12. Paternalistic. Control is centralized and influenced by tradition instead of good management practices.
13. Overly Conservative. Older family members try to preserve the status quo and resist change. Especially resistance to ideas and change proposed by the younger generation.
14. Communication problems. Provoked by role confusion, emotions (envy, fear, anger), political divisions or other relationship problems.
15. Systematic thinking. Decisions are made day-to-day in response to problems. No long-term planning or strategic planning.
16. Exit strategy. No clear plan on how to sell, close or walk away from the business.
17. Business valuation. No knowledge of the worth of the business, and the factors that make it valuable or decrease its value.
18. Growth. Problems due to lack of capital and new investment or resistance to re-investment in the business.
19. Vision. Each family member has a different vision of the business and different goals.
20. Control of operations. Difficult to control other members of the family. Lack of participation in the day-to-day work and supervision required.