ValuExecBlog

All Geared Up but with No Where to Go!

I was reminded of the importance of having a clear vision this week whilst working on a project for a client. After spending some time interviewing the senior management of the company, one message was coming through clearly. Without exception, every one of the senior managers said "We need direction." When I approached the Managing Director about this, he said that usually the direction was passed down from Head Office in terms of sales numbers and EBIT. I suggested that those were targets and not what the senior managers were asking for. His response was then, "Well, the corporate vision is .....but the senior managers know that." And there-in lies the fundamental issue.

What the senior managers were asking for was to have a very clear understanding of where the local business unit was going. I think that one of the most difficult tasks confronting a Managing Director of a local operation or a GM of a business unit is to develop a vision statement for his/her unit that supports the corporate global vision and which local managers and employees can own and which importantly they believe enables them to contribute to global vision of the company. Too often, local GMs take the global vision statement, frame it and place it on a wall in the reception area and say, "That is our vision." The problem with that is first, it may have no relevance to the local operation, and secondly, there may be no buy-in from employees regardless of their level within the company.

Asking, "How can we as a local business unit contribute to the global vision and capture that contribution in our own vision statement of where we are going to take this unit over the next 5 years?" will assist in developing a statement and direction for the unit that has relevance and buy-in. The same can apply to departments within the local business unit.

There is an excellent article written by Gordon Quick entitled, "Fired Up and Ready to Go - Now What" that is well worth the read. Quick suggests and I quote,"Creating an inspirational direction for a company - a clear vision statement - is not easy. It takes a complete understanding of your business, disciplined reasoning and a dose of creativity. That's one of the reasons many companies have vision statements so vacuous that they are meaningless to the majority of employees." Having a clear vision statement ensures that employees do not prioritize personal career goals over company goals.

It never ceases to amaze me how energized people become when they have a clear direction. Execution then becomes so much easier.

ian

Execution - Par Excellance!

It was poetry in motion. One continual fluid movement that resulted in all who were there, rising out of their seats. Last night I witnessed execution - par excellance (excuse my french). It was my daughter's music concert and the school orchestra played "The Producers." (Music and lyrics by Mel Brooks).

Now, I know that the comparison between an orchestra and business execution has been used many times before, but I still can't help but believe that it is probably the best comparison that we can use. It has all the elements as to what constitutes excellence in execution. 

First, everyone is playing off the same music sheet. The notes may be different, but everyone knows what the game plan is and what their role is in creating the plan. Secondly, everyone knows what the person on their right and left will do. There are no surprises because they are all working as a team no matter what section of the orchestra they belong to. There are teams within the team. Third, everyone, without exception takes their cue from the conductor. They go where the conductor takes them. Finally, everyone has prepared for this performance. Years of practice have given them the skills they need to be there and perform. They have the skill sets as it were.

Watching the orchestra last night stand up as one and take a bow, I thought - now that is execution - par excellance! Bravo!!

ian

The Myth of Excellence

I am currently reading the book "The Myth of Excellence: Why Great Companies Never Try to be the Best at Everything," by Fred Crawford & Ryan Mathews (Crown Business; 2001) and I was intrigued by the myths that the authors uncovered from extensive research that they had undertaken amongst consumers. Intrigued because at the outset, the authors admitted to being somewhat naive in terms of what they thought consumers wanted. As they mentioned,"We assumed that consumers wanted the absolute lowest prices, the very best products, and lots of value-added services. We also expected them to tell us that they wanted shopping to be fun and entertaining. We were in for a shock."

Here are the myths as uncovered by Messers Crawford & Mathews:

1. The Mythology of Price: Business brags about cheap, but people value honest
   People are less concerned about getting the lowest price than they are with getting a fair and honest price. In other words, consumers want a price that is consistent and that doesn't appear to have been artificially increased or decreased at the expense of other things that they want to buy.
2. Setting the Service Bar: Walk your Talk
   'Special' services that 'add-value' are useless if companies can't successfully serve customers' basic, everyday requests. Customers want to be recognized as individuals and know that the company they are dealing with is willing to customize its offerings to their individual needs.
3. Access: It ain't just location anymore
   Today, consumers care more about navigation - physical and psychological - than mere geographic location. Offer too much in the way of selection or distraction, and companies run the risk of making the most important aspect of access, the customer's ability to actually locate and buy, too high a hurdle.
4. The Real meaning of Experience: Intimacy matters
   Consumers want respect, to be treated like a human being, and to be offered unique products or services.
5. Product: Your best just isn't good enough
   Just because a company thinks that its products are the best doesn't necessarily mean that they dominate the consumer's consciousness. Consistently good product is more desirable than a single 'best' offering.

The book provides valuable insight for us all and is well worth a read.

ian

Have We lost Our Creative Instinct?

I have just returned from an amazing week of doing nothing but reflecting; reflecting on the past, the present and the years ahead. Reflecting on my beliefs, values and dreams obtained and dreams still to be attained. One week of doing nothing but thinking and writing down the outcome of those thoughts into my journal. No phones, no PCs; absolutely no technology of any kind. Cut off from the rest of the world. For one week, I put all logic aside, and followed my thoughts and feelings wherever they went. And, it must rate as one of the most stimulating weeks that I have had in a very long time.

I have been worried for awhile now that our fast paced lives don't allow us enough time to reflect and I mean, really reflect. At the back of my mind is this nagging question "As a whole, are we losing our creative instinct?"

Everyone, I believe, has the creative spark in them. Some smother it because they are told to do so. A woman I met the other day was told by her parents that if she wanted to be successful then she had to study the sciences. So at school she focused on maths and business studies. As life would have it, she got caught up in caring for the family, running a business, and various other things. For 50 years she told me, she suppressed her artistic self. Today, at 65 she is on a quest to find it again. Some suppress it for cultural reasons. A young man from Singapore once told me many years ago that the loss of creativity amongst his generation was a sacrifice that they were prepared to pay so that they could become a prosperous nation.

I can not help but think that we have it back-to-front. More emphasis should be given to developing and nurturing our creativity from an early age, and indeed throughout our whole life, so that by the time we enter the work environment, we are not afraid to "go where no man has gone before."

As far as I know, we have only progressed as a species when someone followed their dreams, defied logic and tapped into their creative side.

What do you think?

ian

Getting 'Back to Basics' at Home Depot

Apparently in an effort to bolster its flagging sales, Home Depot will be going 'back to basics.' In a recent article by Patti Bond published in The Atlanta Journal-Constitution (September 2 2007), Frank Blake, the current CEO of the retailer, has shelved major growth initiatives that were once followed by his predecessor in favor of a 'back to basics' blueprint.

How many times have we heard of or read about companies that once beset with ongoing problems, go 'back to basics?' It is the same with professional sports people. When they feel that they are in a slump, they will go 'back to basics.' So, I have to ask "What is this 'back to basics' blueprint that seems to be the elixir to all organizational and sporting woes?"

The answer lies in the number of clues that Ms. Bond alludes to in her article and which befell Home Depot:

1. There are missteps in service (process) which results in an alienation of customers
2. There is a loss of focus which results in low morale of employees (people)

In short, Home Depot failed in two areas that are crucial to execution excellence, namely people and processes. But the problem is further compounded however by the fact that when companies do fail in these two areas, they tend to destroy the trust of their customers and we all know how extremely difficult it is for companies to get that trust back once it is lost.