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Archive for August, 2011

Evidenced Based Business Growth

Monday, August 29th, 2011

Every business owner we meet asks basically the same question: How do I get my business to grow? And this question is especially prudent in this economy.

While the question is admittedly complex, there are ways to reduce the complexity and reduce the mistakes owners make when growing their business. The way to do it is to understand, accept, and embrace evidence-based management. Perhaps the best proponent of evidenced-based management is Jeffrey Pfeffer (Professor of Organizational Behavior, Stanford Graduate School of Business).

As an example, we know (or should know) that when starting a business it’s important to:
1. Have a well defined product or service that meets an unmet need in the
marketplace (differentiation strategy)
2. Have adequate funding (working capital) to support the business (and
yourself) until revenue generated can support the business
3. Have a business development strategy to find, qualify and sell to customers
4. Have the ability to deliver on your promise (also know as fulfillment, which we see closely tied to your culture)

These are the basics. If you adhere to these four actions, you are very likely to experience early success.

Doing one, two or three of these well, however, will not make a successful business. Mediocre – maybe, though not viable and sustainable. Why do we say this – evidence. Evidence that is based on research and personal experience garnered from our work over the years.

In this week’s Quick Tips we will identify the factors necessary not only to do the four steps to establish your business, but also to continue to grow your business.

To learn more about evidence-based management, we suggest you read Jeffrey Pfeffer and Robert I. Sutton’s book, Hard Facts, Dangerous Half-Truths & Total Nonsense (Harvard Business School Press – 2006).

For more information on business growth see our videos, articles and white papers at: www.kubicalaforestconsulting.com

Copyright 2011 Kubica LaForest Consulting

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Driving Innovation

Friday, August 26th, 2011

Innovation… a key topic of interest today and a magnet attribute for individuals and organizations. The problem, unfortunately is – more talk than action.

Andy Stefanovick in his recent book, Look at More, provides us with a unusual approach on how to instill innovation in your organization.

1. Encourage Provocation – incite a heightened state of arousal through purposeful disruptions that cause a change in awareness and mood. (Remember that fear is a barrier to creativity and stress will deplete it.)
2. Change your Mindset By Insuring – solicit and understand other perspectives outside of your own. Interestingly, Stefanovick advises that risk, passion and “confusion tolerance” are key components, or disciplines if you will, for the right Mindset.
3. Mechanisms – build a context to create and apply innovation. This entails using a specific problem scenario or scenarios to employ innovation.
4. Measurement – identify and use measurable criteria to gauge your use and success of innovation / innovative approaches.
5. Create Momentum – allow your employees white space! Don’t hover, smother, or drive your staff into the ground! Recharge time and breathing space are critical for innovation as a practice.

We see some of the most successful organizations embedding innovation as a way of doing business, which differentiates them. Are you?

See our full range of articles, videos and past blogs at: www.kubicalaforestconsulting.com

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The Unsung Hero

Monday, August 22nd, 2011

In last week’s Blog, we talked about the “unsung” hero in an organization. That person who “holds things together”: The facilitator, the peacemaker, the strategist. Shuttle diplomacy is a good way to describe there working style.

He/she is well know by the informal organization and is often the “go to” person when something needs to get done. We used the metaphor of the electromagnet force: http://www.kubicalaforestconsulting.com/blog/?p=585.

Great leaders understand the importance of having these people in the organization. Marginal leaders fail to recognize the critical role these people serve, and hence fail to encourage and reward this behavior.

How do you recognize this person:
1. They have tenure in the organization
2. They are often in a management or even an executive role
3. They are the person others go to when they need something done
4. They are good boundary spanners
5. Work they’ve been associated with often is successful and done with minimal
fanfare
6. They have institutional memory and use it as a learning and teaching tool to avoid
mistakes – they learn and use it to the benefit of the organization.

And they are invisible among the political noise, posturing, and positioning that runs rampant in far too many organizations. In our work in transition management and business growth, one of our first steps is to find these people because they are the key to a successful initiative.

Don’t make the mistake of overlooking or ignoring the people that make things work in your organization. Seek them out, talk to them, encourage them, find ways to reward them. And most of all, find ways to retain them.

See our full range of articles, videos, and past blogs at

http://www.kubicalaforestconsulting.com/

Copyright 2011 Kubica LaForest Consulting

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The Atom and the Organization

Monday, August 15th, 2011

What does physics, specifically the atom, have to teach us about organizations. Well it turns out – a lot.

Atoms are elegant things. They are composed of readily recognizable components: electrons, protons, and sometimes neutrons. The protons and neutrons (bound together by the strong nuclear force) form the nucleus. The electrons and nucleus are bound together by the electromagnetic force.

Here’s the point. We’ve all heard of electrons, protons and neutrons. We probably don’t remember the role electromagnetic force plays holding the atom together. And when we refer to the strong nuclear force – well let’s be honest – your eyes are probably rolling back into your head.  Why? It’s really not that interesting.

Organizations are composed of an executive team (which in many organizations clearly needs to be held together by a strong nuclear force), and non-executives working at various levels from the executive team.

Holding it all together is an invisible, often unstated, organizational electromagnetic force. We can refer to this as the culture. Culture – the way things get done around here. But it’s the people who actually get work done. So people at different levels working in sync with each other and with the executive team get the work done and establish a positive organizational culture. For more information about culture, see out blog posting on: Culture: Made by Intention and Filled with Stories http://www.kubicalaforestconsulting.com/blog/?p=500.

In organizations we celebrate the superstars. We recognize the high performers. Yet what do we do with the employees who just hold things together: the employees who work silently and out of the limelight. They are often the unsung heroes. They hold things together; they insure that the organizational electromagnetic force is of sufficient strength? To be honest – we don’t do much with them. In fact, we often don’t even notice them, until they’re gone. Then the structure begins to deteriorate. We hear statements like: “things don’t seem to work quite as smoothly as they once did – I wonder what’s wrong.”

Improving organizational performance requires looking into all aspects of employee performance from the visible to the invisible. We often make the mistake of only recognizing and considering the highly visible employees for promotion. We caution you not to fall into this trap. The highly visible employees are not necessarily the best performing employees; they are not necessarily the ones insuring that the work gets done – they are just highly visible.

Just like the atom, a stable organization has an executive team, non-executive employees, a strong nuclear force and an organizational electromagnetic force. Ignore the forces that hold the components together and the result is an unstable organization, which may just deteriorate faster than you can control it.

See our full range of articles, videos and past blogs at: www.kubicalaforestconsulting.com

Copyright 2011 Kubica LaForest Consulting

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Strategy Focus in Unsettling Times

Thursday, August 11th, 2011

On Monday we discussed strategy – what it is and what it isn’t. We outlined the steps that need to be taken to build and implement a strategy. And we further differentiated between strategies and goals. A question we often get from business owners, especially now, is: how can we possibly plan is such an unstable economic environment?

It’s a fair question considering:
• The dramatic stock market swings that feel like we are on a class 5 roller coaster and being upside down at times just doesn’t feel right
• Congress and the White House in ideological deadlock on how to address the economic problems we face
• Mismatch in some businesses between the skills they need in staff so as to grow the business and the skills available in the marketplace

We have advised in the past and we advise again, while the economic outlook is unsettling, it is important to understand how your company is doing and how your clients/customers are doing. Some businesses are still doing quite well even in these tumultuous times.

The Wall Street Journal ran an article on an Indiana machine shop business – Bremen Casting, Inc. – (8/10/11 – Section B-1) who is deciding whether to continue the expansion of their melting metals capacity. The executive team met to decide whether to request an additional $5M bank load to complete the expansion. They looked at their customer base (15 companies represented 50% of sales). They looked at the order pattern and concluded that their custom base was solid and they did not forecast, based on data, a drop in demand. They went forward with the loan and continued to add capacity.

This is a good example of looking at your market as it exists for you and your clients/customers today rather than extrapolating bad news to your market. One is analytical and pro-active, the other is emotional and reactive.

Focus on what’s real for your business, identify and then focus on the opportunities your competitor’s will open up for you based on their over-reaction – and act accordingly. It just may be the time for you to become aggressive.

Copyright 2011 Kubica LaForest Consulting

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Complacency in Strategy Can Ruin Your Business

Monday, August 8th, 2011

Strategy is a word that is bandied about in business circles. It can get pretty expansive: strategic planning, marketing strategy, financial strategy, product strategy, strategy for developing a strategy… And it’s used as if everyone clearly understands what it means.

Let’s start with what strategy is not. It is not a goal; it is not an objective; it’s not an exercise. It is an approach – the means to your end, that:

  • Identifies an unmet need in the market – an opportunity to be in a place or do things where the competitors are not
  • Aligns your ability to address that need to result in a competitive advantage for your company
  • Considers the barriers that can interfere with execution
  • Assesses what your company needs to do to execute the strategy
  • And, identifies the resources to do it

We’ve recently seen two large high-visibility companies stumble: Research In Motion (the maker of Blackberry) and Borders. Borders paid the ultimate price for a poor strategy – they filed for bankruptcy on February 16, 2011 and are in the process of liquidating all of their stores.

RIM is still in business but suffered a dramatic drop in market share. According to a Wall Street Journal report, RIM is in third place behind smartphones run by Google’s Android, and the iPhone. What makes matters worse for RIM, is that they are introducing a new operating system, ONX, a year from now and are trying to convince buyers in the meantime to buy their non-ONX phones.

There are many other companies that have failed because of poor strategy and poor execution (a great strategy is useless in a business sense unless it can be executed). Look at Wal-Mart and Kmart.

Small businesses are not immune to the perils of poor strategy, unfortunately they fail faster because in part of poor capitalization. The exciting part, however, is that companies with a good strategy and the ability to execute it can succeed and grow (sometimes spectacularly). Remember, Wal-Mart was once a small 5 & 10 (Walton’s 5 & 10) in Bentonville, Arkansas.

In this week’s Quick Tips we will explore what to do about it to ensure you are not complacent in your strategy.

Copyright 2011 Kubica LaForest Consulting

 

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The Fine Art of Compromise

Thursday, August 4th, 2011

On Monday we wrote about the ineffectiveness of positional bargaining. Also on Monday, we got a chance to see positional bargaining on a national scale. And based on a Pew Survey conducted earlier this week, it appears many Americans were not impressed by what they witnessed. In fact the survey reported “a staggering 72% have nothing but derision for Congress’ divisiveness.” Positional bargaining doesn’t work: not in government, not in business.

So what does?

Before we answer that question, ask yourself – do I want to reach an agreement? This is a serious question, because if you do, there are ways to achieve it. If you don’t or you really don’t care or only want it your way, then positional bargaining is just fine because it will help you achieve that objective.

What works is a willingness to compromise, a willingness to reach a satisfactory agreement. In Washington this week, reporters questioned whether some members of Congress wanted to reach an agreement or only wanted to reach their definition of what an agreement should be.

Whether in business, in politics, or in our personal lives, compromise is necessary to move forward. And the anatomy of the compromise process looks like this:

  • Identify an outcome, or at minimum, the common points of the outcome that are agreeable to both parties.
    • In other words, what’s the objective and do you agree that it’s the objective?
    • Understand the consequences to you and your company if you do not reach an agreement?
      • Then, determine if you can live with the consequence?
      • Understand the issues you cannot give on (your deal breakers) and be prepared to share why?
      • Understand the issues that you would like to get, but it’s not a deal breaker if you don’t. This creates buffer space.
      • Negotiate with the other party
      • Compromise yourself.

Not all discussions will end in agreement because the parties may just be too far apart on their definition of an acceptable outcome. And that’s OK and will and should happen at times. What’s not OK is to draw a line in the sand at the start of the discussions and dare the other person to cross it.

Copyright 2011 Kubica LaForest Consulting

 

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Positional Bargaining Does Not Work

Monday, August 1st, 2011

As kids, most of us played the game “I dare you”: We would draw a line in the sand (figurative or literally) and dare the other person to cross it. Sometimes it got really serious and we got double-dared. Talk about pressure.

And what this is really all about is setting a position, a challenge, and daring the other person to take that challenge (and actually it’s your challenge not theirs). The adult version in a business context is called positional bargaining. I set my position in a negotiation, and literally dare you to drive me off it. Well, the outcome is usually different than the childhood game – though it’s pretty obvious – the other digs into their position, dares you back, and in the end – it’s a stalemate. Nothing happens, and both parties walk away blaming the other for their intransigence.

Sounds silly and counterproductive. And while it often is, we see it a lot in business and politics. In fact, and quite unfortunately, we have been seeing a real-life example of this between Congress and the White House. And the press asks an important question: Who will blink first? Who will cross the “line”?

In business, it looks like this:

  • “I’ve set my sale price for my business – take it or leave it.”
    • Problem – your sales price is unrealistically high and your business is not in a position to support it
    • “I want you to provide more service than we agreed on in the contract. If I don’t get it, I’m cancelling the contract or I won’t give you future business”
      • Problem – you agreed to pay for a defined level of service, now you are asking for more without a price change. Is that how you run your personal business?

Positional bargaining doesn’t work. Not only does it create tension and at times animosity, but when the deal is finally done, or resolution reached, often neither party is satisfied.

In this week’s Quick Tips we will explore a better way to reach and agreement and avoid drawing any lines.

Copyright 2011 Kubica LaForest Consulting

 

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