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Improving Your Business Results

In the best-selling book, “Execution” by Larry Bossidy and Ram Charan, Execution is defined as, “a discipline of questioning, analysis and follow-through.”  The authors go on to explain that Execution is a discipline for meshing strategy with reality, aligning people with goals and achieving the results promised.

Improve Your Business Results

What can you do today to improve your ”discipline of questioning, analysis and follow-through?”

In a succinct and effective way, the book suggests that the key is in aligning three processes; the people process, the strategy process and the operations process. 

Now, traditional thinking would suggest setting the strategy and then aligning the people and operations capability to the chosen strategy.  In essence, the thought is to make sure you have the people and operations capability to carry out the chosen strategy. 

However, this thinking is wrong because there is often no solid link between these three critical processes.  So, these processes operate somewhat independently of one another and it feels like you are running in Jell-O.  For example, if a strategy is chosen that can’t be supported by the current people and/or operations processes, the plan is doomed and results fall short.

Simple But Not Easy 

The key is that each of these three processes has to be aligned with the other two.  This is much different than the traditional method outlined above.  When you align each process with the other two, every area is on the same page with every other area.  When that occurs, magic happens.

This process is simple, but the work is not necessarily easy.  However, when you finally achieve alignment between these three processes, every area of your entire organization will be working in sync to improve business performance and, ultimately, business results.

For more insights into how to improve business performance and business results, check out our other blog categories here. 

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For a no-cost, no-obligation consultation with Founder and President, Jim Connolly, contact him here.

To your success!

Tackle Ineffeciencies Before Innovation

I’ve been swamped with organizational restructuring projects for the last 15 months. 

I’ve seen hundreds of processes and practices that needed to be eliminated or restructured significantly, including:

• Irrelevant Processes developed to feed information to software that had been replaced twice since the process was put in place
• Management practices that amounted to “welcome aboard - good luck”
• Leadership practices which indicated that leadership was the first priority right after you got your regular full time job done
• Approaches to organizational change that bordered on “if we don’t acknowledge the need for change we won’t have to change”

At the same time, the latest trend for organizations is the need for innovation.  Organizing in new and radically different ways in order to reduce costs, increase profits and improve competitive position.  Innovation is great, but…. 

Shouldn’t we address the “drafty windows” and the “old furnace” in our organizations before adding “solar panels” and a “windmill”?

Opportunities to improve business results by addressing a long list inefficiencies can yield immediate results and build a foundation for creative and innovative thinking.  Sure, some inefficiencies are politcally off limits.  So, tackle the others so those elephants in the room (related post) stand out more noticeably. 

3 Steps To Improve Business Results

1. Figure out what to stop doing - such as gathering data no one uses, eliminating the five unnecessary steps in the order entry process, etc.
2. Do things differently - improve processes, management practices, etc. and, in the process, get the organization more comfortable with on-going organizational change.
3. Then, and only then, consider how innovation can provide the opportunity to dramatically improve the way you do business.

For more insights on improving business performance and results, reference our other blog post categories here.  For a no-cost and no-obligation consultation to discuss your business challenges with our Founder and President, contact Jim Connolly here.

A Leadership Teaching Moment

“Why do we have to increase our revenue target for next year?”, the young supervisor asked his boss frustrated because he thought the budgeting process was over three weeks ago.

“Because of the Golden Rule,” the boss replied.

“The Golden Rule?”, the puzzled young supervisor replied.

“Yes,” the boss said.  “The people with the gold make the rules.”  There was a pause.

“How can they sit up there and arbitrarily increase our targets?”, the young supervisor said rather boldly.

“Great question”, the boss replied.  “Because of the shareholders”, the boss replied knowing that a teaching moment was about to take place.

The young supervisor was very puzzled.  “Aren’t we a private company?”, the supervisor added.

“Yes we are”, the boss said.  He went on.  “But the five shareholders who own the company have a choice to make on where to invest their money.  Should they continue to invest here where there is a risk that they could lose some of their money and where their return is not guaranteed or should they sell the company and put their money in the bank and get a guaranteed return?  We have to make the case to the shareholders that investing in the company again next year is the best return on investment for them.”

“Wow, now that makes more sense,” the young supervisor said enlightened by his boss’ teaching moment.  “So, what can we do to increase the revenue target for next year?”, he added.

“Let’s go back over the numbers and see what we can do”, the boss said now confident that his new young supervisor was committed to this organizational goal for the first time.

For more insights on how to effectively link employees, process, organizational results and return on investment in organizations, check out our other blog articles here.

The Job Interview Process Is Dysfunctional

The goal of the job interview process is to end up with a fully engaged employee who contributes significantly to the company’s operations and who is still doing so two years later.  If you’ve interviewed and hired people, you know that the job interview process is far from perfect. 

Even worse than falling short of this goal, the job interview process also often results in unintended consequences such as hiring an employee who is now causing issues that didn’t exist before.  Examples might include poor service to customers, lost sales opportunities, disrupting teamwork and, over time, causing other employees to leave the company because of their poor behavior.

Four Factors 

There are four factors that contribute to the job interview process becoming dysfunctional:

1. Employers are not clear about what they’re looking for in a job candidate - When multiple owners have multiple opinions on what their looking for, the process is doomed from the start.  Or, when the owner says “I’ll know it when I see it,” the owner will settle for the best candidate available instead of a candidate that meets the pre-defined criteria.
2. Employers are eager to fill the position - The search goes on longer than expected and employers get nervous about an empty sales territory or too much overtime for office staff covering an empty position.  The temptation is to fill the position quickly.
3. The job candidate wants the job, but is not a fit - Job candidates may be unemployed and need a job, might be looking for a job before they get fired or they might simply be unhappy in their current jobs for whatever reason.  When a job candidate’s strengths don’t match up with the requirements of the position, the process is doomed.  Candidates come incredibly well prepared for interviews nowadays and determining whether they are a fit for the position is difficult at best.
4. Using a placement firm doesn’t guarantee success - Now matter how much integrity the firm has and no matter their track record, the relationship with a search firm sets up a potentially dysfunctional relationship.  Because of the structure of the relationship, their goal is not your goal.  Their goal is to get one of their candidates hired so they can generate revenue for their firm.  In this kind of a relationship, they are not sitting on your side of the table.  And, ultimately, that’s not in your best interest.

Strategies For Delivering Organizational Results 

Again, the goal of a job search is to end up with a fully engaged employee contributing significantly to the company’s operations and still doing so 2 years later.  What can you do to improve your employee selection results?  Two things.

One, pay careful attention to the four contributing factors listed above and do what you can to put processes in place to avoid them.  Do this for every job search you conduct, even front line and clerical employees.  We all know of those offices where the goal is not to set off the moody receptionist or anger the overbearing clerical person.  Where dysfunction exists, productivity and customer service suffer.

And two, if you’re going to spend money on the search process, consider using the services of a behaviorial interviewing expert.  This person sits on your side of the table and has years of experience in overcoming these four obstacles in what should otherwise be a process that helps you grow a successful business.

To your success!

For more helpful tips as you negotiate the employee selection process, see our blog articles on interviewing.

Organizational Change - An Everyday Occurrence

If you thought all the talk about “organizational change” was a fad that would pass by like many of the other tired fads (quality circles, ropes courses, personal coaches, managing up, etc.), the “Great Recession” has changed that.

I just got off the phone with yet another CEO who wondered out loud when the pace of constant change brought about by the “Great Recession” was going to end.  I told him what I tell all of my clients.  Organizational change will be a constant presence and to pretend any differently will negatively affect employee performance and organizational results. 

We, and our employees, all want the merry-go-round to stop so we could get off and rest.  But it’s not going to stop.  At least not for a while (until we get near the peak of the next economic expansion).  So how do we cope?

Three Organizational Strategies

1. Treat the organizational change process as a human behavior process, not an organizational structure project.  These are people, not boxes and lines on a chart.
2. Set the expectation that your leaders will guide their people through the process instead of telling them to “sink or swim.”  You need those who can swim to step up.
3. Find a way to embrace on-going organizational change as a key component in your company culture.  Make change normal.

If you do these things, employees will perform, leaders will lead at a higher level and the organization will deliver improved results.  In doing so, you’ll build proactive competitive advantage that can’t be matched by sale prices, staff cuts, search engine optimization or the status quo.

For more insights on building organizational performance and breakthrough results, check out our other blog resources at www.orgresults.net/newsblog.  To find out how we have delivered results for organizations like yours, visit www.orgresults.net or contact our Founder and President, Jim Connolly here or call him at (309) 828-9060.

“Sink or Swim” Is Not In The Leadership Effectiveness Manual

True Story

The student asked the teacher, “Could you say that again?”

“Your homework for tomorrow is page 141, problems 1-16.”

“But, we haven’t learned that lesson yet.  How can we do the homework?”

“When you present the homework problems on the chalk board tomorrow, we’ll go over them.

“The student responded bravely, but hesitantly “Isn’t that backwards?  Aren’t you supposed to teach us first     before we do the homework?”

The teacher frowned in displeasure and said, “This is a sink or swim world, young man.  Get used to it.”

At that the bell rang and students filed out.  The student turned to one of his friends and said, “I thought his job was to give us all a chance to get an A, not set us up for failure.”

Is “sink or swim” part of your leadership style or a common leadership style in your organization?  It’s an expedient way to lead, but not an effective way to lead.  And, if you lead this way, there is no chance for achieving industry leading results.

Some people justify it because of the demands of time.  But, it still results in ineffective leadership and mediocre results.

If you are an ineffective leader and you’re committed to do something about it, contact us.  We can help.  If you’re not committed to do something about it, please contact one of our competitors.

Image Credit: Juho Holmi

Employee Performance Drives Organizational Results - A Reminder

A group of Fortune 500 managers was beginning several days of training together. 

“As we go around the room,” said the facilitator, “tell us how doing your job well increases the profits of your company.” 

There were 25 managers in the room.  Only five could make a credible connection between their jobs and the profits of the business. 

Had they been a jazz group as poorly organized, it would have sounded liike the first day of fourth-grade band.

What Do You Do After You Cut Costs? Two Things!

After one or two or three rounds of cutting costs, now what do you do?

Cutting costs as a method to achieving profitability rarely works, but this is especially true in the current recession.  The falloff in September 2008 was so precipitous that there was no way for companies to “trim the fat” in order to be profitable.  

Several companies I’ve worked with on organizational restructuring efforts over the past 15 months lost 30%, 40% and 50% of their revenues. In the most extreme case, one company that asked me to help them ended up losing 68% of their revenues.

There is no way to cut enough costs to make a company profitable in these circumstances.  So, what do you do?  The only option is to reinvent the company.  

It’s about taking a leadership team through a 5 month strategic planning process in 5 days.  In essence, it’s about asking “based on these new realities, what are the market opportunities that we are uniquely qualified (compared to our competitors) to take advantage of?” This process is hard to do while the ship is still on fire and sinking.

What’s the secret to successfully navigating these treacherous seas?  It’s two things. Use an effective planning tool that bubbles the best opportunities to the top quickly. And, it’s about understanding how humans behave in high stress situations and still being able to capture their attention and creativity while they are in shock and bailing water.

Sure, it’s easier said then done, so proceed with caution.  But, it’s often the only way to restore an organization to profitability when cost cutting isn’t enough.

With Unlimited Resources, You Can Pursue All Alternatives

With unlimited resources, you can pursue all alternatives.

Since none of us has unlimited resources, which opportunities will your organization pursue in 2010?  Will you fill that key position?  Expand the product line?  Cut back in specific areas?  Borrow money to invest in capital equipment?

With an effective plan for 2010, you get to choose your course instead of letting your customers, competitors and market forces determine your results for you.  The fact is that there are some market segments where you competitors can beat you and other market segments where they can’t beat you.

Five Steps
As we come to the end of one of the most challenging years ever, do you have a clear plan for 2010?  Here are five steps you can take to improve your 2010 financial results:

• If you don’t have a business plan for 2010, develop a plan that will serve as a blue print for 2010.  You’ll be working your plan for growth, while your competitors get pushed around again like they did this year.
• If you have a business plan in place, is there a process that takes 14 steps in your company, while a competitor has figured out how to do the same process in 5 steps?  Is there a key employee or leader that is not performing well in his/her role?  There is a gold mine of opportunity for improved financial results to be mined in your organization.  Let us help you address organizational issues and build best practices in key areas.
• If you have fully implemented best practices, do you have a strategic plan?  More specifically, do you have a breakthrough strategic plan? There is a significant difference.Most strategic planning processes start with deciding on a mission statement without regard for whether the market wants any of what you have to sell.  A breakthrough strategic plan starts with an analysis of the external market environment.  Our process asks you “Where are there key opportunities that you are uniquely equipped to take advantage of that will deliver improved revenue, gross profit   and operating profit?”  Build competitive advantage that is unique to your company’s strengths.
• If you have truly developed a breakthrough strategic plan, what’s next?  Innovation.  Specifically, management innovation.  We have seen incredible product and technology innovation over the past fifty years.  However, the model we use to manage our organizations has its foundation in early 1900’s in the then emerging industrial revolution.  It was designed to achieve efficiency.  It did that.  But, today, we need more than that.There is a growing list of companies that are beginning to create innovative new management models that are built for the challenges we face today such as a global marketplace, deregulation, the pace of change, information overload and the impact of the Internet.  Why not be one of the companies that are soaring beyond the constraints of old management methodology?  We can help you get there.
• Finally, even if you have completed your planning for 2010, did you get feedback and guidance from a professional resource outside of your company?  “Improving the PRC process” may mean something to you today, but it’s not measurable and it’s not clear which part of the PRC process needs to be improved.  It also has no deadline and no one responsible for it.  Bottom Line:  It won’t get done, just like the things that didn’t get done last year.  Let us help you make sure your plan delivers the results you need it to deliver.

2010 is just around the corner.  What steps will you take to be better prepared than your competitors for what is likely to be yet another challenging year?

We hope you’ll use these suggestions to drive results for your organization in 2010.  If we can be of assistance to you by guiding you through these strategic initiatives, please don’t hesitate to contact our Founder and President, Jim Connolly, for a no cost and no obligation consultation.  Use our expertise to drive results in your organization.

As always our blog articles and Web site are available as a free resource to you.

Four Secrets For Driving Organizational Results

A secret is defined as something hidden or concealed.  On the other hand, some secrets are hidden in plain sight.  You just have to know what to look for. 

So it is with these four secrets for driving organizational results.  These “secrets” are hidden in plain sight, but not used by most business leaders for a variety of reasons.  “We’ve never done it that way before.”  “I don’t have time to figure out a new way of doing things.”  “The results we get are not great, but they’re consistent.”

Whatever the reasons for not using these “secrets,” here are four secrets that can significantly improve organizational results if you will use them in your organizations.

1. Improve Employee Performance.  Organizational results is a function of individual employee performance.  Whether you implement behavioral interviewing, improve leadership effectiveness, increase employee accountability, improve the effectiveness of decision making, make meetings more productive or learn to have more honest and direct conversations, you can directly improve the performance of your employees individually and collectively.
2. Organizational Process/Structure: Your organization’s processes and structure are either helping build productivity and organizational effectiveness or your processes and structure are working against your efforts to improve organizational performance and results.  Organizational process and structure can create limitations, obstacles and a culture of “it’s not my job.”  Or, organizational processes and structure can create a balance between giving employees the responsibility they want while, at the same time, providing high levels of accountability for results.  Apply this secret and it will feel like you’ve released the emergency brake while driving down the road.
3. Breakthrough Strategic Planning:  If your strategic planning efforts are based on forecasting forward the same 2.5% growth from the last three years to next three years, it’s not strategic planning.  Breakthrough strategic planning involves looking for market opportunities where you can win and where your competitor’s can’t win.  What are the strengths unique to your organization and how can you capitalize on them?  Figure that out for your company and organize to take advantage of those opportunities.  If you do, you’ll set sales and profitability records that will stun you.
4. Management Model Innovation:  Face it, while we have a great track record for product innovation and technology innovation in the last fifty years, we have nothing to show in terms of management innovation.  We are, today, using virtually the same management model that was designed by people born in the late 1800’s to usher in the industrial revolution.  Job descriptions, organizational charts, titles, productivity measures and a fanatical focus on efficiency are all creations of the industrial age management model.  These 100+ year old practices were not designed to address today’s issues of global competition, deregulation, technology advances, 5 generations working in the same workforce, the increasing pace of change, information overload and the impact of the Internet.  Find new ways to manage the organization of today and you’ll build competitive advantage that cannot be matched.

Four “secrets”, each of which can improve organizational performance dramatically.  Decide on which “secret” you want to focus on and gather the resources necessary to implement some of these proven practices.  

If you do, you’ll get to the end of 2010 and be amazed at your progress.  If you don’t, you’ll be disappointed as you look back at the opportunities you missed out on in 2010.  The decision is yours.