Thursday, December 30, 2010

The Mystery of Marketing

Navigating the deep, murky waters of marketing can be intimidating for small business owners because the majority of them don’t know where to start. Coming up with a winning marketing method/formula is difficult. And help, in the context of a Marketing Agency, can be expensive. The reality is that most small business owners can’t afford to hire a marketing agency. So how do you get the attention of potential customers?

Marketing pundit Seth Godin, advocates the merits of being “remarkable”, i.e. being unique enough to be able to get noticed through the “noise” (noise being what all the other businesses are doing to vie for attention). It reminds me of the cliché stockbroker scene where the brokers are all running around trying to out scream each other: literal pandemonium. It is little wonder that the average consumer just wants to shut out the noise.

The possibility of a marketing “home run” is possible but it seems like winning the lottery versus good management (which I suppose is always true of the truly accomplished; they make the difficult look magically easy). There is also the ongoing threat from the competition – in their attempt to get noticed, they will try for “bigger and better”; endlessly tweaking their marketing strategies in the attempt to optimize their competitive edge. So what’s a small business owner to do?

Here are my observations concerning marketing and small business owners:

Unpopular:

1. Newspaper advertising – There is a minority of small business owners who do this regularly; most often they’re food franchises. I believe the rationale is that you can’t let yourself (i.e. your company) get left behind given that everyone else is doing it. There’s generally nothing “remarkable” or “unique” about it except maybe the sheer repetition of your message to the market. The general consensus from most small business owners is that newspaper advertising doesn’t pay back. This perspective is short term but that’s all some businesses can afford to consider.

2. The Yellow Pages – Most business owners will tell you it’s not worth the cost. For the few that I found still advertising in it, most were “in trouble”. Is there a connection? Maybe; I run across a lot of businesses that are in trouble. Given the numbers that “fail” maybe it’s no surprise.

3. Video – I met a business owner that said he spent $ 70,000 in a year on advertising using video at a local venue. It focused on his target market and he confidently asserted that it paid back. Most people won’t consider it. (Pundits say web video is on the rise in terms of importance.) Unfortunately, most business owners feel they can’t afford “professionally” done video and most of them are right. I don’t think a bad web video helps anyone and I’ve seen some pretty bad web videos. Why would anyone include mute people standing there unmoving, looking stiff, unnatural and uncomfortable???? I don’t believe that helps anyone’s credibility.

Most Common:

1. Word of Mouth (WOM)
– I’ve only run across one small business owner who didn’t credit his success to ”word of mouth” which is really about the ability to develop and spread relationships. It’s a marketing strategy that is typically slow to yield results but is almost always effective. I suspect those that excel at customer service find it the most rewarding in terms of results. However, I also suspect it can be limiting/restricting because there’s little impetus to explore what works better. The question is: are you reaching your potential? My opinion is most companies aren’t.

2. Location, Location, Location – My observation is the importance of location correlates inversely with the amount of differentiation. It is most important for retailers who sell commodities where there’s little to no differentiation. It’s somewhat less important for businesses driven by referral (WOM) such as health providers, Spa’s, Salons, Lawyers, and Accountants. Although with these businesses, location can be a method of differentiation. I know a business that’s located close a Go Station where most of their clients are commuters. It’s very high traffic and IMHO, a very smart location choice. The primary benefit in this case is increased traffic but there can be other considerations: proximity to suppliers and/or customers to save on travel and shipping/delivery costs. Logistical efficiency can be important, but it’s more important to attract sales and high traffic is a great way to do it. For specialty businesses such as an artist, location is less important (because their product offering is highly differentiated) and the same can be said for manufacturers who have a limited customer base. The more unique the offering, the further people will go to obtain it. Location is also important for on-line businesses but the context is different. The challenge is not their physical but “on-line” location, and they also have the issue of getting noticed through the “noise”. It is common knowledge that the virtual world is gaining in importance and that it is important to be represented in that context. The problem is that it can be a literal quagmire of options; many of which aren’t well understood. As an example, most businesses are intimidated by security and well they should be. I don’t know of an IT person who isn’t concerned about security (to the extent that they opt out of online social media) which is pretty compelling evidence that the rest of us should be concerned too. Unfortunately, I believe this is one of those things where being a late adapter can be dangerous/harmful but the challenge is in knowing how to make it work effectively and safely. There are lots of companies that feel spending money on SEO (Search Engine Optimization) is a waste of time. And I’d agree for those that are still getting lost in the noise regardless of their SEO investment. The challenge, as always, is how to get noticed but just because someone doesn’t know how to do it doesn’t mean there isn’t opportunity.

Differentiation – The most frequent response I hear to the question of: “How do you differentiate?” is customer service and speed. The problem is that almost every company claims superiour service and speed. I have no doubt of its critical importance given the poor survival rate of those who don’t do it well but believe doing it well is a prerequisite and thus rarely a true differentiator. A problematic question for most businesses is: How do you uniquely answer your customer’s needs or what is your unique value proposition or Unique Selling Proposition (USP)? Most business owner’s have a hard time answering this question but the sooner and the better they can answer it, the sooner and better they can leverage it. And magic can happen if a company understands it well enough that they can effectively measure customer response to their USP.

Think of it this way: do you want a customer to have to find you in a “crowd” (also defined as “noise”) or would you prefer to stand out so that it is easier to find you?

The Opportunity

Marketing is a very big subject and blogs are small but the one thing most people will agree on is that sales are about relationships. Does marketing include sales? Most would say it does. So why not keep it in perspective? If it helps sales, then it’s worthy of your attention. And if you don’t know exactly how much something impacts sales then: find a way to measure it. What doesn’t make the cut is noise and we could all do with a lot less noise.

Tuesday, November 30, 2010

Emotional Control – Why Leaders Need It

I recently saw an Air Canada ad with the slogan, “Great Executives never get ruffled”. And while it’s a play on words it strikes a cord because emotional control in Leaders does matter. Here’s why:

Emotional Intelligence

Many business people are familiar with Daniel Goleman’s writings on Emotional Intelligence and understand that it’s a desirable trait/skill. The simple definition of Emotional Intelligence is the ability to recognize and regulate emotions both within the self and others. Why would that matter? It’s because leaders drive change via others. This can invoke questions about manipulation and morality. If one accepts that we’re governed by free-will then, manipulation is limited to influence and presumes that people cannot be controlled. When it comes to morality a useful model to think of is a teacher helping students to learn and better themselves and by extension, their community. Similarly business should serve those in the work force and community, the difference being income versus education. Morality matters because it fosters trust and is at the core of any important relationship but the caveat is nothing is perfect; there is no perfect student, teacher, business or leader. However, there are certainly gifted students, teachers and leaders. (A business can’t be gifted; it’s not an individual.)

It can be demonstrated that Emotional Intelligence is important from a sales perspective. As an example, would you buy from an angry sales person, or a sad one? The reality is that people buy to address their own needs and generally aren’t all that interested in the sales person. If a sales person is not focused on the prospect’s needs because they’re in the throes of an emotional response the probability of a sale is reduced. The reverse is also true. A sales person wants the prospect to be in the right frame of mind to buy. However, if the prospective buyer is wary of or does not respect the sales person then he/she won’t want to deal with them. And a salesperson very much needs to have a prospect’s attention to get them to make a purchase so if they’re having an argument with their spouse or child it’s a deterrent. A leader is in essence selling change and being able to encourage the prospect to be in a receptive frame of mind can greatly facilitate the process.

It seems relatively straightforward but when the psychologists talk about Emotional Intelligence it can seem quite complicated. Another benefit to Emotional Intelligence is when you’re not distracted by emotional noise it’s easier to stay on task which helps to reduce stress. Stress is a ’Catch 22’ in that it distracts you and that distraction can lead to increased stress.

Entitlement

Excerpt from article on rabble.ca titled, Narcissism, entitlement, aggression and rape By Colin Horgan, October 3, 2010

In their book, The Narcissism Epidemic, researchers Jean M. Twenge and W. Keith Campbell describe the rise of narcissistic characteristics throughout culture; traits like overall feelings of superiority, of being special and, crucially, of entitlement. Twenge and Campbell reviewed the results of Narcissistic Personality Inventory tests taken between 1979 and 2006 and revealed that: "College students in the 2000s were significantly more narcissistic than Gen Xers and Baby Boomer in the 1970s, '80s, and '90s.... By 2006, two-thirds of college students scored above the scale's original 1979-85 sample average, a 30 per cent increase in only two decades." They also note that the "upswing in narcissism appears to be accelerating." Additionally, Twenge and Campbell point out narcissism's relationship with aggression -- that is, contrary to the belief that if we like ourselves, we'll be kinder to others, narcissists "are aggressive exactly because they love themselves so much they believe that their needs take precedence." The rise of narcissism can be traced to a cultural shift driven by decades of parenting and education and, not surprisingly, by how narcissism has become celebrated in mass media. We've ended up with a generation of people convinced by both their parents and the culture industry that they are special and entitled to most things simply by virtue of being a desirable marketing demographic.

The “Narcissism Epidemic” describes a phenomenon that is disturbing. One aspect is that bullying is getting worse in schools, despite countless anti-bullying programs. And it suggests that the generations entering the work force are bringing their evolving narcissistic attitudes with them. So what to do about it?

I suggest that being able to effectively deal with conflict – in any context - has always been an under-rated skill and is getting more important every day.

Defusing Conflict - Active Listening = the Big Guns

Most people feel anxious when confronted with conflict. Our strong survival instinct typically invokes the fight or flight response which can be pretty appropriate when faced with a physical threat. As a general rule, violence is unlikely but it still can be challenging to stay calm enough to actively listen. And like most things in life, active listening gets easier with practice.

Active Listening effectively defuses conflict by focusing on and validating what a person is feeling. Feelings are facts. People frequently try to rationalize and convince others that they shouldn’t feel the way they do. It’s counter-productive and only adds frustration to an already volatile mix. To be able to say to someone, I see/understand/hear that you’re feeling “x” generally pulls them up short and just about all they can do is agree, although, sometimes it takes a few iterations. Validating doesn’t mean you “agree”, it means you “heard” them. Unfortunately, many people don’t know how effective this can be and even if they do, find it difficult to resist the urge to give in to being angry. To effectively avoid your own emotions you have to divert your focus and attention, hopefully to what others are feeling.

What to do about an inappropriate sense of Entitlement

It’s not a competition. Don’t engage in battle. Hopefully, “losing” isn’t something you’d wish on your worst enemy. Granted, this can be tough but the more you care about others the easier it is. I remember telling one employee the Tradesmen’s motto: Act surprised, show concern, ask for proof and deny everything. It’s a joke but the element of “showing concern” always has a positive effect. She agreed to try “showing concern” and said that, surprisingly, she actually felt concern. That was the point and for her it was major developmental progress. (A great book on this is, “The Anatomy of Peace” by the Arbinger Institute.)

Be clear and consistent about appropriate boundaries, which can be defined as the limits that allow for safe connections between individuals. Just because you listened doesn’t mean you have to give in. Don’t resort to rationalizing because that can be debated. Base it on your feelings because they can’t. It’s never up to someone else to decree how another feels. A useful context might be to visualize dealing with a small child: don’t react emotionally, care and actively listen, be clear and consistent and don’t expect it be easy. It can be a process that requires significant patience.

A temper tantrum without an audience dissolves quickly. Removing yourself from the situation can be very effective. If you find you can’t control your emotions then you can always come back later when you’re more able. But even if you do succumb slightly, actively listening can help you to defuse your own anger. Try it; you’ll be amazed at the results.

I recently met someone who described her run-in with a person with an inappropriate sense of entitlement as severely wounding. Its significance was so overwhelming that she was contemplating abandoning something she was really passionate about. Don’t let someone keep you from your passions. Don’t give bullies that kind of power. Active listening may help if the bully isn’t a sociopath but if they are avoidance may be a better tactic. If what you’re doing isn’t working then try something else until you find something that works.

Excerpt from What’s Wrong with a Healthy Sense of Entitlement? Donny Deutsch Has the Right Perspective by Kit Cooper - published May 5th, 2009

Donny Deutsch offers an interesting take on the sense of entitlement. To feel deserving of all the world has to offer but simultaneously not feeling entitled to success without doing what needs to be done.

Deutsch has accepted that he is no smarter than anyone else and no one else is smarter than him. For business, this translates to a huge competitive advantage in, a) building a corporate culture that is not just authentic but confident, and b) capitalizing on business development opportunities since you know that you can do anything that your competitors can do.

Monday, October 25, 2010

Leadership – How Important Is It?

It’s difficult to blog about leadership because it’s such a big subject. There are so many theories, books and concepts ranging from styles, competencies, how to be exemplary, as well as the chronicles of the various legends in both industry and life. In the interest of keeping it manageable, this blog will focus on the importance of Leadership, despite some very credible leadership naysayers, like the notable Jim Collins (Good to Great). Although, even he, finally had to admit that his own data demonstrated that Leadership made a difference in the “Great” companies.

A colleague of mine forwarded a video to me that I think provides some good insights: “Leadership Lessons from the Dancing Guy”. It starts with a man dancing at an outdoor concert. He is soon joined by a “follower”, then another and then another, and so on. Finally, enough momentum is reached; the “join-in” rate is so significant that if you don’t join in you’re the odd person out. The lesson here is that it is the first followers that are really important because without them the dancing guy is just someone that could end up looking pretty silly dancing alone. The other implication is that the “leader” isn’t important because once things take off the leader literally disappears and becomes one of the masses. He has bragging rights for being first but that’s all.

http://www.youtube.com/watch?v=fW8amMCVAJQ&feature=player_embedded

Pretty interesting but what does, Leadership Lessons from The Dancing Guy, have to do with Business Leadership?

1. Power is an amplifier

There are similarities between the two but it should be noted that the Dancing Guy doesn’t have the power business leadership has. No one’s livelihood or income can be impacted by him and he can’t affect their status within the “organization”. And that kind of power should never be underestimated. Losing one’s job is right up there in significance with losing a loved one or getting divorced. When power is involved it’s like an amplifier in that every move, gesture, comment, eye brow arch, etc..., becomes so much more significant. One doesn’t like to relate it to Rock Star status as most leaders wouldn’t make the cut, but I can think of a few that have attracted a groupie or two. I specifically remember Jack Welch writing that being the CEO of GE (having power) was the equivalent of being 10 years younger and a professional football player when it came to dating. Interesting! A lot of leaders forget the impact their power can have and then are surprised when faced with a strong emotional response. That’s why even a seemingly subtle encouragement and/or endorsement can be quite effective.

2. Leadership is primarily about Change but requires Courage and Influence

The Dancing Guy provides impetus for people to change what they’re doing. He’s just out there by himself, attracting attention by being silly, and looking like he’s having fun. The fact that he’s the only one dancing draws attention. He’s out where he can be easily seen but he doesn’t solicit joiners. He just waits it out. He’s a risk taker and appears comfortable with being different. It’s interesting that he doesn’t check for feedback either, he just appears to be having fun. So confidence and risk taking are key components in providing impetus but so is positioning to get noticed and acting in way that “speaks to people”.

3. Sustainability

The Dancing Guy doesn’t have much of an agenda other than maybe having fun and encouraging others to do the same. He’s not out to build an enduring legacy or to optimize customer value. Once the song is over, so is the movement. It’s not sustainable. Business, on the other hand, requires sustainability and the prerequisite skills; which could be emotional intelligence, vision, passion, determination, ability to navigate objections, problem solving, ability to nurture, coach, and develop. In essence, it is about wanting to do something and figuring out ways to make it happen. However, in order to do that, you need to have the appropriate talent and skills. For example, there’s no point pursuing Olympic gold in the 100 meter dash if you’re not built for speed. The Dancing guy didn’t appear to have great rhythm but he did have guts and a sense of fun which is apparently what was required to get people dancing. What skills do you need to accomplish what you want in your business?

4. Leaders Need to Establish Appealing Meaning

Obviously the Dancing Guy wasn’t out to “solve world hunger” and yet he successfully got people to join in. So he succeeded in presenting an appealing idea and provided meaning in the context of having fun. Making Business Goals appealing can be a bit more challenging. Being a savvy politician or marketer is good but there needs to be a compelling impetus. It might be as simple as the survivability of the business (a pretty good motivator). Or it may be as simple as providing help to others. This gets into purpose or ‘mission’; the values and culture which are often taken for granted but shouldn’t be. There’s lots of data to support that clearly understanding and having strong purpose, values and culture are directly correlated with higher performance. The question is why. I’d suggest that the resulting clarity facilitates alignment and in turn builds confidence and trust.

5. The Down Side of Responsibility

A lot of people are attracted to Power because it provides privilege but then get cold feet when faced with the responsibility that goes with it. If you’ve built a business that supports the people in it and one of those people is a drain then it is best to deal with it ASAP. No one likes to hurt another but if a person is a problem then removing them can be like cutting out a cancer. It can ensure the best prognosis regardless of how distasteful the task might be. Sometimes problems are best addressed by less invasive methods. For example, you don’t want to pull out the scalpel if a course of antibiotics will do, i.e., you don’t want to fire someone that you can help and develop. The trick is in knowing what will produce the best result and having the resolve to make it happen.

Unfortunately, some “Leaders” will let their desire to be liked override their good sense, while others will indulge in anger and bully. Think of a child parent relationship; when a child wants something that can harm them, not giving it to them just makes sense. Understanding and taking into consideration the consequences always makes sense. Bullying is primarily about control and never okay. I specifically remember one “Leader” saying he didn’t have tolerance for stupidity; that was his justification for yelling and throwing things at people. It did nothing to improve things. It just made people upset and angry and was counter-productive. There is no rationalization for abuse. Caring is important in any relationship as is the consideration of consequences. People want to feel valued and to trust that their Leader has the fortitude to do what’s best even if they don’t.

6. Challengers

The Dancing Guy didn’t have any challengers and I’m not sure what it would have looked like if he did. Maybe someone starting a candlelight vigil? And if the Dancing Guy’s movement fizzled I’m not sure it would have been a big deal. Likely the dancing guy would have disappeared into the crowd; no worse for wear. Retreating or ignoring a challenger is always an option but what if you feel that your business is worth fighting for? Minimizing collateral damage is always a priority but so is surviving. Being the equivalent of a Black Belt where you can defend or thwart attacks relatively effortlessly is about as good as it gets but sometimes you may have to hurt someone to survive. It’s best not to get involved with those types of situations but what if they can’t be avoided? What if you were faced with competitor or employee sabotage? (It does happen. I’ve seen both scenarios.) Would you have the skills to deal with it?

The bottom line is “Leadership Lessons from the Dancing Guy” can provide lots of interesting insights but the most important one is that in order to bring about change, you need a leader. And given that the environment, business or otherwise, is always changing and can threaten ones survival, the ability of leadership to facilitate change isn’t just important, it’s critical.

Thanks to Sami Syed for forwarding the video link and to Digby Howse for helping to clarify several concepts.

Thursday, September 30, 2010

Lessons from the Road

When I venture out from my stomping grounds it’s generally with anticipation, and the general belief that I’ll discover something intriguing and my trip to Denver to attend a The Alternative Board Conference didn't disappoint.

I try to bring something interesting to read for those times when I’m deprived of my Blackberry like when I'm actually airborne. With that in mind, I embarked on a search for something worthy. I cruised blogs. I checked out best seller and recommended buy lists. I was getting quite discouraged when I finally stumbled upon “it”. A research based book with statistics to back it up: “Happiness at Work, Maximizing your Psychological Capital for Success” by Jessica Pryce-Jones.

It boasts that the happiest people:
• Are 180 % more energized
• Are 180 % happier with life
• Are 155% happier in their jobs
• Are 108% more engaged at work
• Love their job 79% more
• Are 50% more motivated
• Have 40% more confidence
• Achieve their goals 30 % more
• Contribute 25 % more (which means a whopping 1 ¼ days more productivity/week)

The book identifies the key factors as Contribution (where setting and achieving goals is important), Conviction (motivation is intrinsic), Culture (liking your colleagues is important as is fairness and having control), Commitment (you need 5 to 6 “pathways” or alternatives because there’s generally only about a 20% probability of any one being successful), and Confidence (getting things done, self belief, and understanding your role). It’s full of interesting information and I’d highly recommend it.

Back to the trip: Having learned my lesson not to skimp on time to get through the airport I got there early enough that the lines were virtually non existent and ended up sitting at the gate with a significant amount of time on my hands. I had my trusty Blackberry to keep me productive and amused but became intrigued by a “nice, young man”. (How did I ever reach the age where I think of someone as a nice, young man?) We quickly got into the serious business of solving all the world’s business problems and I think by the end of it both of us felt like we’d made some pretty good progress. Turns out he does marketing events and that Bud Camp is real. “Pour the perfect Stella beer” competitions are also real. I came away from it with a deep appreciation for how powerful eliciting deep emotional responses about a brand/product can be through an event. Might not be quite as good as the Old Spice social media coup but still pretty remarkable. If you haven’t seen the Old Spice You Tube come backs for questions posed on Facebook and Twitter you should check them out. Not only are they quite entertaining but Old Spice sales are up significantly for the first time in a long time.

There was also the intriguing drive to the hotel with the Ethiopian immigrant. It turns out he came to the U.S. with $ 300 and built up a ½ million/year Dry Cleaning business only to lose it all during the “crash”. “Money comes, money goes.” Obviously he had no trouble with acceptance. We started into the “ethics” talk that opened with the ever obvious, “Rich people are greedy” and concluded with what I’ll summarize as the, ethics are more important than money, perspective. He was a fascinating man but in retrospect, if we had more time, we could have expanded it to the importance of power relative to survival. I think in times of plenty, power becomes less important because it doesn’t affect survival significantly. There’s also the issue of the age old adage that power corrupts which I think is generally true but I also suspect that it’s more complicated than that. That it’s related to “roles”. For example, the Dalai Lama is powerful but not considered corrupt. He believes he’s a re-incarnation. His role identity is very strong. Does his belief in being compassionate get reinforced by that? I think so. And for the record, it’s my observation that one of the requirements for long term success is high ethics.

There was too much to summarize from the conference but one of the highlights was the session on coaching excellence. The focus is always on the coachee and what they want. Specifically, how to help them clarify what is important to them, establishing their goals, figuring out how best to achieve them and finally, supporting them to make it happen. Another way to think about it is it’s about facilitating acceptance so the coachee will adapt in a positive way. It’s most effective when it reflects the coachee’s language, opinions and agenda; not the coach’s. It sounds simple but in practice can be quite challenging.

There was also the old argument for personality assessments which was strongly supported. Personally, I have a tendency to think of personality assessments as a way to categorize people. They help with understanding and relating to each other but think that can also be achieved through quality, effective conversation. And conversation has the benefit of being quicker and cheaper. But to be fair personality assessments can also be key in evaluating fit, for example; will someone be good at sales? And sometimes people exaggerate, are biased about themselves or those they care about, or are simply in denial and assessments can help negate that. Still, I believe being a good communicator is a really powerful skill. It is our most used method to inspire, coach, direct, clarify, evaluate or to assess. And most of us could be a lot better at it.

It would be really wonderful if everyone would communicate using a coaching methodology as the focus would be on helping each other to develop in a supportive, non invasive, non coercive manner and personally, I’d really like that and think others would too.

Monday, September 6, 2010

Implementing, Executing and Project Management – Getting It Done

It occurred to me that our businesses aren’t much different than our daily lives in that it’s easy to get caught up with whatever is demanding our attention. There are things that we typically don’t let slip such as sleeping, eating, and taking care of our hygiene. And sometimes we’ll even tackle things like a nagging ingrown toe nail given it’s going to affect our ability to function. The mainstays of living (sleeping, eating, and hygiene) can be seen as providing employees with the tools to do their job, pay and being clear about expectations. The equivalent of a nagging ingrown toe nail would be something that negatively affects productivity.

So what can business owners do about those nagging problems? First, they must understand what it is they wish to accomplish, which sounds simple but often isn’t. There are always lots of permutations and combinations to ponder. Then they need to achieve the resolve and commitment to take action, and decide how to get it done. Even those with the best intentions get sidetracked or frustrated, which erodes resolve and commitment and is why borrowing some Project Management concepts can be helpful.

The value of Project Management is best realized when applied to the complicated and unique, versus something that’s done repetitively such as with manufacturing. In its highest form there are PMP (Project Management Professional) certifications and PMBOK’s (Project Management Book of Knowledge) to study. Being a good problem solver is always a great asset because the probability of the unforeseen occurring is virtually certain. More time is always spent implementing than planning, so it’s really no surprise that surprises happen. The question is how to find them while you still have time to devise a fix that’s affordable, and effective in support of the objective. And while it might be tempting to think in terms of error proofing its usefulness is in application to re-occurring processes.

Understanding scope is crucial. How do you get there if you don’t know where you’re going? The more you understand about motives, objectives and limitations the easier it is. Sales people typically think in terms of identifying “the need” but I think a better paradigm is understanding the job a person is trying to accomplish. It facilitates more creative solutions versus limiting choices to what’s available “off the shelf”. That said leveraging proven and readily available solutions makes sense whenever it reduces risk.

Discovering issues or road blocks is always better done sooner rather than later. There are a myriad of tracking techniques (Microsoft Project is pretty standard) but sometimes simple tools work fine. An example would be regularly reviewing a list of milestones and issues. It’s about uncovering problems while they can still be addressed effectively. Being able to ask the right questions is key. What could affect the budget and schedule? What options and alternatives are available?

A common problem is drift. Wouldn’t it be cool if we did, or had…? Yes, it would be cool to do a lot of things but what if it doesn’t fit within the budget? Staying cognizant of limitations can be difficult. It’s easy to get lured away because we always want it to be perfect even though, we know nothing is. The best way to manage “Wouldn’t it be cool if…?” is to qualify it via the motives, objectives and limitations. How does it fit? For example, wouldn’t it be cool to drive the latest muscle car? But what’s important is getting from “A” to “B” within budget. At the end of day that muscle car might not be worth not the expense and the increased probability of ending up in the ditch during inclement weather. Understanding how important the budget is, and how important the cool factor is relative to what you’re trying to accomplish helps to make the choice easier. What fits the functionality requirements? What fits within the limitations? Keep in mind that in business it’s typically the ones that don’t have to pay the bills that propose the, “Wouldn’t it be cool if…?” It’s like your child saying, “Can I have whatever?” They might not be as enthused if they were paying the bills and could think beyond their own personal, short term gratification.

It’s also normal to have to negotiate with others to get things done where overcoming objections can be draining and time consuming. A common objection is: “I don’t think it will work” An appropriate response might be: “What do you think will work?” Another common objection is “I’m too busy” To which “When would be a better time?” can be effective in facilitating the acceptance that there frequently isn’t a better time. Another option is: “So given that you agree that the benefits are worthwhile what can be done to get it done?”

Persistence and patience are always needed because no matter how much you believe it should be simple and straightforward, it rarely is. If it was easy anyone could do it, and the fact that it isn’t makes it more worthwhile.

In summary:

Be committed (but understand it isn’t always enough).
Understand scope:

  • Motivations, need
  • Objectives, the job to be accomplished
  • Limitations

Find problems:

  • Hold regular reviews
  • Ask questions about:
    • Status, where you’re at
    • Suitability in terms of function
    • Ability to meet requirements (such as the budget and schedule)

Solve problems
Explore alternatives and options
Proactively deal with drift by testing ideas against criteria/scope.
Proactively address objections.
Be persistent and patient

And if all else fails, ask for help!

Monday, August 2, 2010

To Adapt or not to Adapt, that is the question

As I've discovered, many business owners are resistant to change and find it difficult to adapt, even when one could argue that doing so would be in their best interest. I’ve heard “I’m stuck” which I’m sure is not only frustrating but certainly not a state in which one wants to remain. So what does it take to get unstuck? It’s an interesting question that I don’t think has an easy or simple answer. As one wise mentor once told me, “You’re not ready until you’re ready.”

Certainly understanding and acknowledging that you’re not where you want to be can be helpful because the root of all improvement is discontent. However, we’re all creatures of habit and developing new strategies for success can be difficult. For example, sometimes we’re victims of inertia and don’t want to do what it takes to develop solutions. Or we don’t want to fixate on a problem and take the time to be creative. Creativity is not an efficient process and our manic culture generally doesn’t allow us the time to indulge in it. Others don’t want to take responsibility and in some cases are actually conditioned not to. For example, if you have a medical problem you go to a doctor. Deferring to an expert can be a great idea but you have to take the initiative to seek them out, and then find the resolve to do what they prescribe. And that can be daunting if you feel the “cure” will be unpleasant or even worse, ineffective.

I’ve read that the root cause of plane crashes can be attributed to what I’ll paraphrase as, the “gotta get there” syndrome. In essence it boils down to the pilot(s) being so emotionally invested in getting to a destination that they are literally unwilling to adapt or change, regardless of the mounting evidence that they should. And we’ve all been guilty of this; taking dubious chances even though you’d hope that logic would prevail. An example is driving when you’re at risk of falling at sleep which apparently 30% of people admit to doing within the previous year. And it could just as easily be talking on a cell phone or a myriad of other things that could potentially put us in harm’s way. And when we get away with it, it just reinforces that we can take these risks even though, logically, we know that you can only roll the dice so many times before eventually losing.

And maybe unsurprisingly, it doesn’t need to make sense logically. We make decisions emotionally. It’s about how we feel. We don’t like to give up because emotionally we’d rather seek reward instead. Plus we know that success correlates with effort and that having the endurance to stick it out can make the difference. The reward seeking phenomenon is a very well documented process within the brain that in the extreme can lead to addictions which, of course, has all sorts of negative connotations. Bottom line is not all commitment is good. So how do we differentiate when it’s good or not? Again, using logic seems an obvious choice but we have to remember our propensity not to. For example, it’s pretty normal for people to ride stocks down in the hopes of recovery versus selling to cut losses. Loss aversion is a very strong motivator when dealing with uncertainty and risk. Similarly, people don’t want to abandon their businesses even when bankruptcy is inevitable. So what is appropriate risk? When is it best to change? We have to keep in mind that we’re all human and make mistakes so we’re not always going to make the best choices. Still, we can strive for improvement while keeping in mind our personal comfort zone.

To overcome obstacles, my recommendation is be adaptable and:

• Give yourself permission to think about it. You’re probably not a pilot. The consequence of needing to be immediately right is unlikely to be fatal.
• Remember that doing nothing is still making a choice but not normally the best one.
• Don’t ignore that nagging feeling in your gut. Let it be a signal to you to start thinking about your options.
• Get in the habit of asking yourself, “What improvement(s) can I make ?” If the answer is nothing, then think about how to minimize losses.
• Give yourself permission to seek support. Take time to consider different perspectives, it’ll help with the creative process.
• If what you’re doing isn’t working, then try something else. If it was easy anybody could do it.
• Give yourself permission to fail. Failure is a great teacher and learning takes practice.

Monday, June 28, 2010

The Importance of Support

I got thinking about the benefits of support because it occurred to me that it’s generally taken for granted and not well understood. It’s such a prevalent and yet complicated part of our lives.

There’s lots of evidence that support is beneficial. With mental health, it is generally known that the mentally ill do better with support. Malcolm Gladwell’s book, Outliers, opens with the Roseto immigrant example where genetics and diet are ruled out as factors on why the Roseto immigrants live longer; the hypothesis being that they’re always in each other’s backyards providing each other support. There are the traditional support groups for various addictions (AA likely being the most renowned), and for diseases such as cancer, Alzheimer’s, lupus, brain injuries, etc. And then there are groups such as religious/church affiliations, free masons, charities and “not for profits”; that also exist to provide support in one form or another.

I was listening to CBC radio when they were talking about how poorly Canadian aboriginals have fared compared to the rest of world given that more than 150,000 First Nations, Métis and Inuit children were placed in residential schools in the 1870s until 1996 and that many reported being subjected to physical, psychological and sexual abuse. The Truth and Reconciliation Commission has set up a series of events where sharing circles are being used to help the victims heal in the pursuit of a better quality of life.

There’s ample evidence that the bullied suffer increased stress and anxiety and are more prone to illness. Helping bullies to empathize with their victims by having them to listen to the hurt and damage they’ve caused (classic intervention) and helping them to let go of their need to control is the typical prescription for helping the victim to heal and the bully to move on to more constructive behaviours.

There’s also the “For Profits”; Weight Watchers being one of my favourites because it’s touted as a top rated weight loss system. What makes it top rated? Permanent and healthy weight loss can only be achieved by making changes in lifestyle. Willpower alone and fad diets don’t work. You need solid “support”, ongoing encouragement, as well as sound nutritional and fitness advice and the resolution to take action. An environment is created in which people take responsibility for the calories they ingest and peer pressure plays an integral part. The Running Room also uses peer pressure (an amazing source of motivation) and other techniques for success. And there are lots of other “For Profit” support forums; Personal Trainers, Coaches, Doctors, and a myriad of other “Professionals”.

There’s also the informal support of friends and mentors whom many of us are feel a strong sense of indebtedness too. For example, I know that I couldn’t have graduated from University without the support of my classmates. And while there’s always concern about Nepotism and favouritism, the truth is relationships matter. We’re all biased and will choose differently for a myriad of reasons regardless of whether anyone likes it or not. And while most people desire to and believe they act fairly, it doesn’t change that choices will differ because of a range of interpretations of requirements and suitability. I’ve heard private business people will say, “I won’t hire someone I don’t know.” Which maybe isn’t fair but it’s the way it is. And if you believe that relationships matter then networking is unquestionably important but all resources are limited - especially time. It’s not just about the quantity of relationships but also the quality.

And as peer pressure is not always positive, not all “support” systems/processes are either. After all, the road to hell is paved with good intentions. For example, without the support of our parents most of us wouldn’t have survived childhood but not all of that “support” was positive. A lot of psychotherapists have made a very good living sorting out people’s childhood issues that a lot of parents are blamed for. Support needs to be “positive” in order for it to be beneficial. In fact, I think support needs to provide aid, help or assistance, without interfering with a person’s free will. The question of whether support should also be welcome is a little less clear, especially when one considers interventions, but I believe it needs to be eventually so as not to violate our ever important right of free will. And maybe this gets to the crux of the matter because I think it’s about helping people to face difficult issues that on some level, they don’t want to deal with. To help them take responsibility and develop strategies for making better choices.

Even so, I must admit that sometimes I wonder about cause and effect. Are support groups successful because the people joining them have decided to change and just want some structure to do so or because people desire change but just can’t on their own? I’m not sure and maybe it doesn’t matter because there’s lots of evidence that support makes a “positive” difference.

And as most of you reading this have likely guessed this is where I put my plug in for The Alternative Board which provides support to business owners in what I believe is positive and important way. It can make a big difference for those that choose take advantage of it. So what choice do you want to make? Stay the course or take advantage of the support that The Alternative Board offers?

Wednesday, June 2, 2010

Optimization

Many business owners I meet appear flustered and stressed out which isn’t a confidence builder from a customer’s point of view. Why are they flustered? I suspect for a lot of them it is fear, stemming from worrying about trying to fulfill customer’s expectations and/or how to sustain/grow their business. And while we all know that some anxiety is motivational, we also know that too much is disabling.

There are findings (Manage Your Energy, Not Your Time, Harvard Business Review) that indicate that by looking after (nurturing) ourselves; i.e., getting enough sleep/rest (a lot of successful people were big on naps; Einstein, Napoleon, Churchill, etc.), exercise, and eating well, our performance can be optimized. For example, as you need to optimize conditions for optimal crop yield, so it makes sense to optimize the conditions for optimal business yield, which apply to people, machine, processes, etc. And while this sounds simple my observation is that it is not. For example, the paradigm that hard work is the road to success seems to mean an endless endurance marathon to many (no wonder they look stressed out). And while “fitness” can be defined as adaption to stress and is certainly desirable, we’re all constrained by limits. A typical mantra is that in order to succeed you have to outwit (be smarter), outlast (dig deep/endurance marathon), and outplay (maintain unwavering focus). With Malcolm Gladwell’s, Outliers there are examples of how you need to acquire 10 years/10,000 hours of experience/learning and how the “winners” did it faster than their competition (the Beatles, Bill Gates, etc…). So how do you do it without dropping from exhaustion? It’s about being so passionate about what you do that you literally don’t want to do anything else and persistence is a side effect because the activity is so intrinsically rewarding.

So how do you “nurture” the development of that kind of passion, persistence and intrinsic motivation? Well, some people are more predisposed to being more persistent than others (genetics) and certainly there are environmental or cultural influences that “encourage” that type of unrelenting focus. But bottom line it’s about loving what you do. Does it need to be discovered? Is it possible to cultivate? How do people develop “passions”? I believe it’s about caring and that the biggest controllable factor is choice.

And a lot of us don’t think much about our choices. We make them because of an emotional response that’s driven by our attitudes and biases. What do you want your attitude to be? Do you want your attitude to help you succeed? What can you do about it? Are you asking yourself what you can do to help make things better? How often do you do so? I’d suggest you’ll want to do it frequently, such as every time you’re unsure or don’t know. Would you rather watch TV or work on the crop/garden for a bit? That way you can continually refine what’s working until you get as good the Beatles! And I’d bet you’d be less stressed too.