Month: October 2010

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How Transparent can a Mine be?

As the world watched the amazing rescue of the Chilean miners, I was struck by the amazing level of transparency being demonstrated by the Chilean government. No one knew if the rescue was going to be successful. And yet, the world was watching the event unfold live, with cameras above and below ground. What a display of trust.

Contrast this show of transparency with the tragic events that occurred in West Virginia earlier this year.

Massey Energy chairman and CEO Don L. Blankenship repeatedly defended his company and its safety record. He was quoted as saying that, “any suspicion that the mine was improperly operated or illegally operated or anything like that would be unfounded.” As commented on at the time: “Rather than exercise the least amount of humility and allow such investigation to take its course, Blankenship has already gone into a defensive mode of denial and refusal to take responsibility. Even in the wake of terrible human tragedy, he will not budge from the arrogance of a stance in which he and Massey ‘can do no wrong.'”

A headline in the Charlestown Gazette stated:

Will transparency help Massey Energy and hinder the Upper Big Branch Mine disaster investigation?

Ken Ward wrote that “It’s being argued that we in the media are “just silly” to be demanding that federal and state investigators open their probe of the disaster at Massey Energy’s Upper Big Branch to the press and the public.”

While the Chilean government is just beginning its probe into the safety lapses at the San Jose mine, we can hope that the level of transparency shown at the rescue will be carried forward into the investigation.

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Smart Networking: Advancing Your Career

Two professionals having a handshake

Do you play bumper car or smart networking?

Bumper car networking is when you show up at a meeting or social function, bump up to someone for a couple of minutes, talk about this or that, hand out your business card and say something like: “Let’s get together some time.”

Now smart networking is different. Its focus is on building relationships, not just contacts. Here are seven tips to help you connect with people, develop meaningful conversations and, most importantly, advance your career.

1. Come prepared.

Have two or three openers that you can use with a variety of people you meet. That way, you won’t fumble for something to say when you first meet someone.Some examples: “What drew you here today? “Have you seen any good movies lately?” “What did you find particularly interesting about the presentation?”

2. Create an agenda.

People often dread small talk situations because they say, “I don’t know what to talk about.” Actually the problem is that there have too much to talk about—an entire universe of topics—not nothing to say. Narrow down your conversation options by making two lists.

  • On the “get” list put who you want to meet or what you want to learn more about.
  • On your “give” list put your areas of expertise, interesting information, people you know, etc.

3. Listen and learn.

Once you’ve asked your opening question, listen patiently to the person’s answer. Allow the speaker to elaborate without rushing to jump in. Be thinking, “What does this person need? What’s on my “give” agenda?”

4. Focus your attention.

Avoid the canned nod-and-smile approach with eyes roaming the room to see who else is there. Continue to ask engaging questions. If you’re friendly and genuinely curious, others will feel comfortable talking with you.

5. Find common ground.

Only after the person has told “his story”, then share your thoughts and experiences. If you find something you both can relate to, that establishes a bond that can lead to further exchanges. Be open to the magic of where the conversation can take you.

6. Ask for their help.

Most people enjoy helping others. Therefore what is it that you want to “get”? Use your agenda to find someone who has written an article you’ve enjoyed, or can introduce you to the speaker, or give you ideas for your upcoming project.

7. End with the next step.

If you want to continue the relationship, conclude with what you’re going to do next or what you expect of the other person.

  • “I‘ll send you the article we’ve been talking about.”
  • Let’s set up a time when we can get together to talk further.”

Career Success Tip

Preparation, a focused agenda and a genuine interest in others are the keys to smart networking that builds relationships, not just contacts. Think back to a recent networking event you attended. Did you play bumper car or smart networking?

Do you want to develop Career Smarts?

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10 Myths About Business Ethics

Business ethics concepts drawn on a paper

Business ethics in the workplace is about prioritizing moral values for the workplace and ensuring behaviors are aligned with those values — it’s values management. Yet, myths abound about business ethics. Some of these myths arise from general confusion about the notion of ethics. Other myths arise from narrow or simplistic views of ethical dilemmas.

1. Myth: Business ethics is more a matter of religion than management.

Diane Kirrane, in “Managing Values: A Systematic Approach to Business Ethics,”(Training and Development Journal, November 1990), asserts that “altering people’s values or souls isn’t the aim of an organizational ethics program — managing values and conflict among them is …”

2. Myth: Our employees are ethical so we don’t need attention to business ethics.

Most of the ethical dilemmas faced by managers in the workplace are highly complex. Wallace explains that one knows when they have a significant ethical conflict when there is presence of a) significant value conflicts among differing interests, b) real alternatives that are equality justifiable, and c) significant consequences on “stakeholders” in the situation. Kirrane mentions that when the topic of business ethics comes up, people are quick to speak of the Golden Rule, honesty and courtesy. But when presented with complex ethical dilemmas, most people realize there’s a wide “gray area” when trying to apply ethical principles.

3. Myth: Business ethics is a discipline best led by philosophers, academics and theologians.

Lack of involvement of leaders and managers in business ethics literature and discussions has led many to believe that business ethics is a fad or movement, having little to do with the day-to-day realities of running an organization. They believe business ethics is primarily a complex philosophical debate or a religion. However, business ethics is a management discipline with a programmatic approach that includes several practical tools. Ethics management programs have practical applications in other areas of management areas, as well. (These applications are listed later on in this document.)

4. Myth: Business ethics is superfluous — it only asserts the obvious: “do good!”

Many people react that codes of ethics, or lists of ethical values to which the organization aspires, are rather superfluous because they represent values to which everyone should naturally aspire. However, the value of a codes of ethics to an organization is its priority and focus regarding certain ethical values in that workplace. For example, it’s obvious that all people should be honest. However, if an organization is struggling around continuing occasions of deceit in the workplace, a priority on honesty is very timely — and honesty should be listed in that organization’s code of ethics. Note that a code of ethics is an organic instrument that changes with the needs of society and the organization.

5. Myth: Business ethics is a matter of the good guys preaching to the bad guys.

Some writers do seem to claim a moral high ground while lamenting the poor condition of business and its leaders. However, those people well versed in managing organizations realize that good people can take bad actions, particularly when stressed or confused. (Stress and confusion are not excuses for unethical actions — they are reasons.) Managing ethics in the workplace includes all of us working together to help each other remain ethical and to work through confusing and stressful ethical dilemmas.

6. Myth: Business ethics in the new policeperson on the block.

Many believe business ethics is a recent phenomenon because of increased attention to the topic in popular and management literature. However, business ethics was written about even 2,000 years ago — at least since Cicero wrote about the topic in his On Duties. Business ethics has gotten more attention recently because of the social responsibility movement that started in the 1960s.

7. Myth: Ethics can’t be managed.

Actually, ethics is always “managed” — but, too often, indirectly. For example, the behavior of the organization’s founder or current leader is a strong moral influence, or directive if you will, on behavior or employees in the workplace. Strategic priorities (profit maximization, expanding marketshare, cutting costs, etc.) can be very strong influences on morality. Laws, regulations and rules directly influence behaviors to be more ethical, usually in a manner that improves the general good and/or minimizes harm to the community. Some are still skeptical about business ethics, believing you can’t manage values in an organization. Donaldson and Davis (Management Decision, V28, N6) note that management, after all, is a value system. Skeptics might consider the tremendous influence of several “codes of ethics,” such as the “10 Commandments” in Christian religions or the U.S. Constitution. Codes can be very powerful in smaller “organizations” as well.

8. Myth: Business ethics and social responsibility are the same thing.

The social responsibility movement is one aspect of the overall discipline of business ethics. Madsen and Shafritz refine the definition of business ethics to be: 1) an application of ethics to the corporate community, 2) a way to determine responsibility in business dealings, 3) the identification of important business and social issues, and 4) a critique of business. Items 3 and 4 are often matters of social responsibility. (There has been a great deal of public discussion and writing about items 3 and 4. However, there needs to be more written about items 1 and 2, about how business ethics can be managed.) Writings about social responsibility often do not address practical matters of managing ethics in the workplace, e.g., developing codes, updating polices and procedures, approaches to resolving ethical dilemmas, etc.

9. Myth: Our organization is not in trouble with the law, so we’re ethical.

One can often be unethical, yet operate within the limits of the law, e.g., withhold information from superiors, fudge on budgets, constantly complain about others, etc. However, breaking the law often starts with unethical behavior that has gone unnoticed. The “boil the frog” phenomena is a useful parable here: If you put a frog in hot water, it immediately jumps out. If you put a frog in cool water and slowly heat up the water, you can eventually boil the frog. The frog doesn’t seem to notice the adverse change in its environment.

10. Myth: Managing ethics in the workplace has little practical relevance.

Managing ethics in the workplace involves identifying and prioritizing values to guide behaviors in the organization, and establishing associated policies and procedures to ensure those behaviors are conducted. One might call this “values management.” Values management is also highly important in other management practices, e.g., managing diversity, Total Quality Management and strategic planning.

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Carter McNamara, MBA, PhD – Authenticity Consulting, LLC – 763-971-8890
Read my weekly blogs: Boards, Consulting and OD, Nonprofits and Strategic Planning.

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Basic Principles of Organizational Design (Part 2 of 2)

Female professional doing a presentation

In my last half-dozen posts I have been focusing on system theories of organization. I have done this because practitioners of organization development depend upon theories about what makes organizations tick. Nothing so practical as a good theory said Kurt Lewin, the mind behind action research. Well thought out theories helps us sort patterns and produces hypotheses about how it all hangs together- this system before us. Good theories are a basis for action. As we test our theories we develop design solutions, which have to be tested. Organization development is a diagnostic process and a design process. This is designing change. . . . .

(Read Part 1 before reading this Part 2.)

Eight Design Principles: PART TWO

To review- The first 4 principles are: the design process is important, how you do it needs to be complementary with what you are trying to accomplish. Don’t over-structure it, allow room for influence and change. Look for where it goes wrong and promote self-directed learning at the source of errors. Define the strategy and design a process to enable people to self-manage. To continue-

5. Boundary Location and Control:

Supervisors and managers have to grow to become more comfortable performing a role as a group resource, a beacon of coming changes and a coordinator across task group boundaries.

Traditional organizations group by: time, technology or territory. The weakness of this is that boundaries interfere with the desirable sharing of knowledge and experience and so learning suffers. The consistent social-technical message is if there are supervisors, they manage the boundaries as a group resource, insuring the group has adequate resources, coordinating activities with other groups and foreseeing coming changes. More and more these resource positions are disappearing as groups become more self-regulating. Often the presence of supervisors is an indication of a lack of success in a groups design, or unwillingness at higher levels to trust based upon a poor job of building the structure. When it is done right supervisors are superfluous at best and harmful at worse.

6. Information Flow:

Teams have to be deeply involved to determine what and where information is needed for self-direction. There needs to be a management commitment to provide information for task performance and learning. Information has to be provided where it is needed for self-direction, learning, and task improvement. Control has to be subordinated to achievement.

7. Support Congruence:

Goals, reward and support systems that integrate required behaviors have to be consistent. The reward and support systems have to be consistent with goals. Incentives have to be realigned to support team-based work structures. Individual based compensation systems are being modified continually to support many different team structures. Skill-based schemes and gain sharing are foundations for high performance.

8. Design and Human Values:

Task and organization design has to be oriented toward improving both the technical and the human components of the organization. The process of design must address the need for variation and meaning in work. It has to take into account the needs for continuous learning, involvement in decision-making, help and support between colleagues, and meaningful relationship between work and outside society, a desirable future. A re-design enterprise will be successful only if it unites a process of organization development, which includes work restructuring combined with a planning process that is both interactive and participatory.

9. Incompletion:

Design is a continuous commitment, a reiterative process. A design is a solution, which inevitably has to be changed, therefore it is critical to build learning and change ability into the team. Management has to appreciate that organization design toward high performance is a continuous process. What has to be learned is the process of design because it is a never-ending necessity. Deep in our organizations, people have to learn how to periodically re-fashion their organizational arrangements. Everything falls out of balance and has to be reviewed with an eye toward deciding upon changes necessary. In the early stages learning how to redesign is often more important than the design itself. The design will change over time and learning how to do it is a team life skill.

The basic message is that if you want people to assume responsibility for the work process you have to involve them in the work redesign process itself. Responsibility is the essence of self-management. To accept responsibility people have to define and make decisions. The tendency is for management to hand the operational people an output of redesign thinking done by others, and expect them to work it. Expecting also, the supervisors to supervise the implementation of a design which management has completed. The trick of organizing for real teamwork is getting everyone involved in the total systems improvement.

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For more resources, see the Library topics Consulting and Organizational Development.

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Jim Smith has over 40 years of organization development experience in a wide range of organizations. He can be reached at ChangeAgents@gmail.com W. James Smith. Also, see his blog.

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What Really Constitutes a Business Crisis?

A-man-addressing-the-crisis-management-team

There are many types of issues facing businesses, but what counts as a true crisis?

It’s not always immediately apparent when your organization is in the initial stages of a crisis. To this effect, I am pleased to bring you a guest blog submission by Michael Nayor, founder and CEO of crisis consulting firm The Rhodell Group, that investigates “What Really Constitutes a Business Crisis.”

WHAT REALLY CONSTITUTES A BUSINESS CRISIS

A business crisis can be anything that can negatively effect a company’s reputation or bottom line. Many events at first blush may not appear to be serious. HP’s firing of Mark Hurd and the subsequent entanglement with Oracle was not a big deal in the scheme of things, even though internally it must have been a shocker. However, the death or resignation of a key person in any organization could very well be serious for any company depending on just how key that person really was. Natural catastrophes, product recalls, labor disputes, computer data losses. The list is endless. Some are temporary. Some can cause the demise of a company. Most can be handled with honesty and the realization that it may be necessary to absorb losses over the short haul in order to achieve a long and healthy business life.

Two distinct categories of crisis need to be recognized. In one we lump all those events over which we have no control, such as product tampering by outside forces or natural disasters. Even in these situations there are always some actions we can take: tamper-proof packaging, liability insurance, proper protocols. But generally these events can blind-side us.

The second category contains all those events that might have been avoided had we chosen to take the actions necessary to protect ourselves and the public. Some are obvious. We look at the BP oil spill and see things that surely could have been done. Other events are not so obvious and these are the ones that can be insidious. When a management believes it is doing the right thing but in fact is fueling a potential crisis we have the makings of a catastrophe. A couple of examples will make this abundantly clear.

Market share is usually very important to a company, oddly sometimes more important than the bottom line. There is always great competition for new customers. Many times the efforts and resources devoted to advertising, marketing and selling to new customers are at the expense of a company’s loyal customer base. This can even be seen at the local level. Where I live heating oil companies consistently offer new customers a deal for the first year in order to lure them in. This, of course, is done at the expense of old, loyal customers who have to make up the slack. The result is that many savvy oil customers these days do a lot of shopping each year to find the best deal. Loyalty is a thing of the past. On a national level the problem has gotten even more serious. A recent financial story in The New Yorker last month observed that there is almost universal recognition that customer service in this country has deteriorated. Such service is considered a “cost”. Companies are looking for the customers they don’t have so they are willing to spend on marketing and advertising but are not as interested in adding to their costs of service. The article made it sound a little like cynical dating. Companies are interested in luring you in but then once they have you, they don’t quite value you as much as the next potential customer they want to corral.

Lack of service is not just a pain for helpless consumers. In this internet age they can do something about it. This is how a company can sow the seeds of its own destruction, and inexorably create its own crisis. Companies and their products and services are being rated on the internet and consumers don’t hold back. They tell it like it is. Granted, competitors may be planting some of these negative comments but for the most part product and service evaluations are being taken at face value. The moral of the story: be faithful to those who brought you to the dance, or the consequences could be severe.

Another form of self-inflicted crisis involves weathering the storm. Whether in politics, professional sports, or in business, “players” still believe that because of their importance they can ride out any issue or problem. They can’t. We can all easily tick off a dozen or so examples, but the latest is surprising. Johnson & Johnson has recently gone through a spate of recalls of tainted children’s Tylenol and Motrin. The Company has generally kept a low profile and even contracted with a third party to buy up Motrin off retail shelves rather than announce an actual recall. And for the last decade it has been settling with claimants for a variety of injuries and death allegedly due from Ortho Evra, a contraceptive patch made by its subsidiary, Ortho McNeil. It appears clear that the current management of J&J has not followed in the footsteps of the management that handled the Tylenol crisis of 1982 which is often cited as the quintessential example of crisis management in modern corporate history. Back then cyanide had been found in bottles of Tylenol in the Chicago area. J&J immediately issued public warnings, issued a product recall, created tamper-proof packaging, and before long was back in business. The Company was up-front and willing to bite the bullet in the best interests of the public. Unfortunately that does not appear to be the philosophy today. There is clearly a danger in believing one’s invincibility. The trust and respect of the public is at stake, and once lost, is very difficult to retrieve.

A crisis is not just the obvious explosion at a plant or a mine. Companies can and do create their own crises. Companies must evaluate their philosophy, their strategy and their honesty. They must take action to minimize their vulnerabilities but at the same time be prepared to take action in the best interests of the public if they value company longevity.

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For more resources, see the Free Management Library topic: Crisis Management
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Michael Nayor (Cornell University (B.S., M.B.A.) and New York University School of Law (J.D.)) is founder and CEO of The Rhodell Group, LLC, a consulting firm that advises domestic and foreign companies and industry trade associations on crisis and reputation management issues. His LinkedIn site is http://www.linkedin.com/pub/michael-nayor/a/861/17

He has taught economics, and written and presented seminars on a variety of business topics. He can be reached at michael_a_nayor@sbcglobal.net or 203 222-7700.

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Appreciative Leadership (by Amanda Trosten-Bloom)

Silhouette of people following their leader on a hill

In this posting, I build on the October 7 blog, in which Steve Wolinski introduced Diana Whitney’s, Kae Rader’s and my book, Appreciative Leadership: Focus on What Works to Drive Winning Performance and Build a Thriving Organization. Expanding upon Steve’s clear summary of our book’s content, I provide some history behind the approach and the design of the text, along with more detail about the five core strategies that together unleash positive power.

The Origin of Appreciative Leadership

Appreciative Leadership was born over a period of years, during which we worked as Appreciative Inquiry consultants and authors. We noticed how some of the initiatives we worked on resulted in “transformational” change (Bushe and Kassam, 2005); while others started strong but lost momentum or effectiveness over time. Patterns of leadership began to emerge among the successful initiatives – and we followed them. Through one-on-one interviews and focus groups, we identified five core strategies that are at the heart of Appreciative Leadership: qualities, strengths and capacities that compel people to follow and foster winning performance. We collected many of the stories from which the strategies had been gleaned, and wrote a book “by leaders, for leaders,” whose purpose was to simultaneously heighten readers’ awareness, affirm their capacities, and enhance their capacities. The Wisdom of Inquiry: Leading with Positively Powerful Questions

The first of the five core strategies is Inquiry. By “asking” more than they “tell” and employing purposefully positive and value-based questions, appreciative leaders actively invite people to share their thoughts, feelings, stories of success and ideas for the future. As committed practitioners of Appreciative Inquiry, we had already seen the power of positive questions. Over years of consulting, however, we discovered that leaders who practice The Wisdom of Inquiry help cultivate environments in which people feel both empowered to make decisions and take risks, and encouraged to learn, experiment and innovate. These capacities, in turn, enhance organizational performance.

The Art of Illumination: Bringing Out the Best of People and Situations

Second comes the strategy of Illumination. Individual and collective strengths are a deep well of potential just waiting to be tapped. By recognizing and shining a light on strengths, appreciative leaders transform raw potential into positive results. They do so by actively seeking to discover the unique skills, abilities strengths and positive potential of every person and situation. They also keep their eyes and ears open to see and hear what works, when people are at their best. They tell stories of success, anticipating and fulfilling people’s need for recognition and celebration and disseminating best practices. Finally, they align strengths – providing opportunities for both individuals and organizations to do more of what they do well, and collaborate where appropriate with others whose strengths are complementary.

The Genius of Inclusion: Engaging with People to Co-Create the Future

By acknowledging and addressing people’s need for belonging and creativity, the third strategy – Inclusion – opens the door for commitment, alignment and co-creation among today’s multicultural, multigenerational and multitalented workforce. New realities are crafted in relationship and conversation; so the act of bringing diverse groups of people “to the table” for crucial decisions and planning is itself transformational. But Inclusion also speaks to how we bring people to the table. It calls us to engage people in a manner that fosters safety and encourages equal voice … that leads to deeper and more intimate connections and accommodates conversational differences, which enable people to contribute in ways that are both comfortable and empowering. The Courage of Inspiration: Awakening the Creative Spirit

The fourth strategy – Inspiration – breathes new life into possibilities, offers hope in the midst of crisis, and gives people a reason and way to go forward. Seeing, experiencing and knowing the hardships of the world, appreciative leaders choose to live and work in ways that are energetically positive. They use elevated language and broadly share uplifting stories. And drawing from the wisdom of the many, they put forth visions of what is possible (i.e., hopeful visions), along with resources and paths for getting there. Together, their language, stories, visions and paths forward give people courage to shed habitual ways of living and working, and to move in new, innovative and more life-affirming directions.

The Path of Integrity: Making Choices for the Good of the Whole

Integrity is perhaps the most important and least understood of the five strategies. It speaks to qualities of character such as honesty, transparency, authenticity, and moral or ethical conduct. But in the end, the strategy of Integrity is about wholeness. Appreciative leaders walk the path of integrity by employing holistic approaches to support the authentic expression of human potential, and to foster the design of life-affirming products, services and organization. They also make conscious choices to serve the whole (i.e., whole person, whole organization, whole world), and encourage or empower others to do the same. By embracing Integrity, appreciative leaders let others know they are expected to give their best for the greater good, and that they can trust others to do the same.

Appreciative Leadership Practices

On October 11, Sharna Garner asked for “simple suggestions or techniques” for the average manager who is super-busy and looking to be Appreciative Leadership on a daily basis. In my next posting (October 26), I will specific practices that leaders can use to bring these strategies to life and unleash positive power – within themselves, and among the people they serve.

Amanda Trosten-Bloom, Principal, Corporation for Positive Change

303-279-2240 (v), 303-277-0659 (f), amanda@positivechange.org, www.positivechange.org

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What is a Strategic Decision?

What is a strategic decision, and how is it different from an operational or tactical decision?

Strategic decisions determine the grand direction upon which an entity will embark. Always, strategy precedes action. The object of strategy is to bring about advantageous conditions within which action will occur. In the military context, this means positioning forces for best advantage and judging precisely the right moment to attack or withdraw. Strategic decisions prior to D-Day in 1944, for example, included setting the day and time of the invasion of the European mainland as well as the choice of battleground. The campaign and each battle were conducted within the boundaries of time and space as set forth by strategy.

Eisenhower led the strategic decision-making process for the AlliesStrategy is more, though, than laying out a plan—long-term or short—of what you are going to do. Continuing with the D-Day analogy, the triumph of strategy at Normandy was the deliberate framing of the mindset of the enemy. For example, the German army was forced to spread itself across a wide swath of the western coast of the European continent because of strategic positioning and deception staged by the Allies.

Once strategy is determined, second tier or operational decisions can be made in the proper context. By definition, operational decisions are those pertinent to the broad execution of strategy. In the realm of business, operational planning is usually conducted with a one-year time horizon, fitting into the context of a longer-range strategic plan. In the military, endeavors resulting from operational decisions are often called campaigns. A campaign is a series of military operations or battles carried out over a large geographical area—such as Normandy in World War II—in order to achieve a large-scale objective during a war. Operational plans for D-Day, for example, set the stage for landing hundreds of thousands of men and significant amounts of equipment and materials on five Normandy-area beaches as part of the overall strategy for taking back France and ending the war in Europe. Other famous military campaigns include Sherman’s march through the Civil War South, Napoleon’s incursion into Russia, and Schwarzkopf’s Desert Storm conflict in Iraq.

Of course, we talk about campaigns all the time in the context of political elections or a series of television ads. The dictionary tells us that a campaign is “an operation or series of operations energetically pursued to accomplish a purpose.” Generally, a campaign has an identifiable objective and expected time of completion. On the personal level, operational decisions relate to the “campaigns” that we conduct in pursuit of our life goals. A college course is a campaign toward a degree. A job that we take for a year or so is a campaign toward a more fulfilling career. Setting up a lifestyle in an apartment or condo might be seen as a campaign toward an eventual house.

After operational decisions come tactical decisions, those third-tier decisions made “in the heat of battle.” Military tactical decisions are made on the ground during battle when, inevitably, things do not go as planned, and officers and soldiers must improvise as they adjust to changing circumstances. Tactical decisions must be aligned with strategic and operational decisions. Despite the exhaustive operational planning prior to D-Day, countless tactical decisions were made once soldiers arrived on the scene and took stock of the situation.

As the Chinese general and famed strategist Sun Tzu said 2,500 years ago, “Strategy without tactics is the slowest route to victory. Tactics without strategy is the noise before defeat.” Decisions at any level, of course, are a matter of choosing among options. But strategic decisions differ from operational and tactical decisions in matters of scope, authority and timeframe.

For more consideration of the history of strategy, visit Mark’s website called Strategic Thinking.

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Ten Common Startup Mistakes

To err is human. To do the same thing repeatedly and expect different results is insanity. And to learn from the mistakes of others is a good way to improve your odds.

Here are ten major mistakes, inspired by a recent Wall Street Journal article (link below):

1. Going it Alone. Forget the solo entrepreneur fantasy. Successful businesses are built on partnerships. No one person is smart enough, or self-aware enough, to know it all. Leave room in your business plan for other people.

2. Asking too Many People for Advice. Seek out advice, but don’t go overboard asking everyone. Create a small advisory group. Then keep them in the loop, so they’ll be there when you really need them.

3. Spending Too Much Time on Product Development, Not Enough on Sales. While every business needs a good product, eventually you have to sell what you’ve got, and make improvements later. Don’t let the “perfect become the enemy of the good.”

4. Targeting Too Small a Market. A clear focus with a well-defined market niche is a hallmark of many solid business plans. That said, keep your options (and your eyes) open to a larger market to expand into as circumstances allow.

5. Entering a Market With No Distribution Partner. Finding customers is not easy for a startup, so do your homework to identify and test your ability to tap into existing networks and referral markets.

6. Overpaying for Customers. Don’t spend more money acquiring customers than you will profit from your relationship with them. How do you know? Do market research, then do your own testing.

7. Raising Too Little Capital. Undercapitalization is a big problem. Sometimes it comes from believing that starving your business early will lead to greater future success. Frugality is one thing; not being able to meet payroll is another.

8. Raising Too Much Capital. Can be just as destructive as not enough money. Remember the dot com boom-bust era?

9. Not Having A Business Plan. Can’t say that enough times.

10. Over-thinking Your Business Plan. No business plan can eliminate risk. Starting a business requires a leap of faith.

Mistakes happen. Success comes to those who learn quickly from their mistakes, and from the mistakes of others.

Here’s the WSJ article: http://online.wsj.com/article/SB10001424052748703467004575463460389523660.html

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For more resources, see our Library topic Business Planning.

Copyright © 2010 Rolfe Larson Associates – Fifteenth Anniversary, 1995 – 2010. Author of Venture Forth! Endorsed by the late Paul Newman of Newman’s Own. Read our weekly blogs on Social Enterprise and Business Planning. Subscribe to our free social enterprise listserv.

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People to Invite to Your Non-Profit Strategic Planning Session

Invitation cards on a desk

Your strategic plan will only be as effective as who you invite to participate in the process. In fact, sometimes, it is even a good idea to set up more than one planning session in order to avoid diluting the ideas by having too many interest groups involved in the same session. So plan well, which groups its okay to clump together and which ones to have a separate session for.

In my experience, the best plan for strategic consultations works in this way:

  • Make the target population consultation open to everyone – The best way to ensure you hear a variety of perspectives is to invite your clientele and any other stakeholders from the community who might have an interest in participating. This keeps the process open and transparent and gives the entire community an opportunity to provide feedback.
  • Keep Board members separate – By this I mean, invite your board to attend the public sessions with your clientele, but encourage them to hold back their comments and input until they have their separate consultation, in order not to dilute the voices of the clientele.
  • Staff member consultations should be done separately – Your staff have a unique perspective in that they know the organization from the inside, and so to get the most benefit from their input, it is best to have that consultation separately because they will offer ideas on how to improve the processes within the organization.
  • Group funders and partner organizations together – In one of the strategic plans we did, we combined our funders and partners and the results were fantastic. Funders are more aware of your organizations challenges than you often think they are. Our funders offered vital ideas on what issues our organization should be addressing in upcoming years. The good part about including your partner organizations is that they can attest to the challenges your organization is facing, and it is good both for the funders to hear partner organizations’ perspectives, it is equally as valuable for partner organizations to hear funders’ perspectives.

Question of the Day: Who else do you feel a non-profit organization should include in their strategic planning process?

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For more resources, see our Library topic Nonprofit Capacity Building.

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By Ingrid Zacharias, Managing Director, Envisioning the Future International, Email: izacharias@envisioningthefutureintl.ca , Website: http://envisioningthefutureintl.ca/

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Consistency is Key – Reward and Recognition

If you Google how long it takes to form a habit, you’ll get anything from 21 to 28 days, but there is no solid evidence on what the answer really is. We all agree though, that an acquired behavior pattern takes customary practice or usage – which in plain-speak means – do it every day until it become automatic. This can also be said for recognition in the Call Centre. Team leaders, supervisors and managers should be spending time on the floor, walking about or sitting in listening to calls (on a regular basis) and providing instant recognition for the great client experiences their agents are providing. This type of on-the-spot recognition is really appreciated and because it happens right away, and can reinforce a particular behavior, can also have a positive impact on future calls. If I take a call and do something particularly well, and my supervisor hears it and comments on it – I am going to try and repeat it on the next call. If you thank me for it 2 weeks later, the momentum is lost. I know that many of you have call quality monitoring software, and that’s great for recording and scoring, but it’s so important to also do the sit-bys. Not only do you get the chance to hear some great calls and do on the spot recognition, you also get to spend time with someone and connect on a personal basis. Many reps feel this is an important form of recognition in itself.

When it comes to rewards, the most popular criticism I hear is that the programs become either a flavor of the week, and change too often, or that they start out strong with lots of hoopla, and after a few months, no one hears anything about them any more.

In order to make a program sustainable and remain current, it takes some planning. Make sure you cover all the elements before launching. Run your model by some reps to pressure test the communications, the guidelines for achieving the recognition and to make sure the rewards are suitable for the effort required. Some companies have formed recognition teams, and these include members from all levels in the call centre. They review metrics, determine contest requirements and prizes using a set budget, develop annual incentive programs based on stretch goals for Key Performance Indicators, and promote the launches with their peers. Being included in one of these recognition teams is seen as a reward by the agents involved and they strive to achieve this status. As an agent, when some of your peers are on the committee, you tend to give the program more credibility right from the start. Having agents on the committee also helps you with the consistency factor. They’ll be the first ones to remind you that it’s time to draw winners, send communications or plan the celebration events, and you can always involve them with these activities to help out. Rule #2: Be consistent in your recognition and rewards Feedback please – How do you make sure you/your management team are consistent in their approach to rewards and recognition? Have you involved agents in your recognition and reward planning sessions? Do agents assist with celebrations?