Reel Them in With the Right Bait

If you're anything like a "normal" operating company, you probably have competitors. That means, of course, that your customers do have a choice. And, I guess you understand that one key thing to recognize is why customers make the choice they do.

When you think about it, they make their choice based on the difference they perceive between you and your competitors. And that means you have to add "hooks" - seemingly small (often lateral) ideas that make a major difference in perception.

One of our clients (we'll call him John) showed me how his company did it. John's company sells stationery. The situation is that John's company is bidding for a major (as in very major) account for the supply of all the account's stationery requirements. It's a mega-million dollar sale in the first year alone. Everyone else has cut their prices to the bone - everyone else except John.

He meets with the account's professional buyer and asks this simple question, "What is the most difficult thing that occurs in dealing with a stationery supplier?" John expects answers like "service" or "lack of on-time delivery." But what he gets is "reconciliation." "How do you mean?" asks a somewhat surprised John. The client talks at great length about how all the invoices come in and how it's really difficult to charge the appropriate department. John listens intently.

To cut a long story short, John suggests that his people key all the client's computer account codes into their computer so that the account numbers can now appear automatically on the invoices and statements. In addition, John suggests that his company produce a list each month showing how all the various departments are performing with respect to their stationery budgets. "Would that make life any easier?" John asks. In fact, what it's done is saved the client many previously wasted hours of labor.

They are now happy to pay John's premium prices.

John's added a hook to his product. Will it work for your product? If it works for John, maybe it will work for you, too. Just ask, "What hooks can we add?" at your next team meeting.

Remember: you are trying to hook the clients. The bait must be attractive to them. So, always discuss things with your customers. It is often said that the successful salesperson spends 80% of their time listening and 20% talking. Your customer who has the information, and you must listen to them to find out their real needs.

viva Las Vegas!

The Butterfly Customer - Capturing the Loyalty of Today's Elusive Consumer

by Susan M. O'Dell and Joan A. Pajune John Wiley and Sons, Toronto, 1997 

 "Butterfly customers" are defined by O'Dell and Pajunen to be people that flit from one store or supplier to another, always searching for a lower price or a different shopping experience. They have no loyalty to any particular store, and are always in search of a better deal or a new promotion. "Constantly in motion for the best deal, the greatest choice, the latest trend, this creature selects a store or brand apparently at random, often abandoning the tried and true for the newest, the closest, the cheapest. It's exhausting to be a butterfly and disheartening to serve one. There isn't one single store that captures all of their interest, dollars or oh-so-precious time. Consumers have been transformed from loyal, reliable and predictable patrons into transients - here today, flitting across the street tomorrow." Butterfly customers have been spawned by the proliferation of options in the retail environment, in the last few decades, including suburban shopping malls that pulled people away from traditional downtown retail and service environments, and national chains of specialty stores that can take advantage of huge purchasing power to obtain the lowest prices for consumers. This is compounded by the fact that many consumers no longer trust retailers and service providers to deliver what they say they will, and to live up to expectations. According to the authors, there are eight characteristics of Butterfly Customers: They will readily accept offers to be loyal customers (through signing up for club memberships, points programs, etc.) but these programs will not truly create loyalty they move across market segments, buying a luxury car one day and waiting in line to save $1 on a pair of socks the next they are intelligent, educated and informed they are cynical and skeptical, tending to disbelieve advertising messages and always reading the fine print they would rather switch than fight - "The current reduction in customer complaints has less to do with a great improvement in service than it does with a collective shrug. What energy the Butterfly Customer does have is devoted to switching, not fighting." they are endlessly interested in the experience of others, and word of mouth is seen to be the most trusted and reliable source of information they are not embarrassed to be Butterflies, and see this pattern of behavior as being praiseworthy in today's economy they know their own worth "It's a wonderful time to be a Butterfly as retailers and service providers everywhere strive to entice this elusive new breed of customer. Every day customers are bombarded with new concepts, new products and new services to try. And there are sales and special offers galore, all designed to lure prospective buyers from retailer to retailer, from bank to bank, from credit card to credit card, and from brand to brand looking to see what's new, what's better, what's different." From the business perspective, though, Butterfly Customers are expensive to win (as there are significant costs entailed in getting their attention in the first place), difficult to service (as they are highly demanding), and almost impossible to keep. However, all is not lost for the poor retailer....At the other end of the spectrum, the authors propose the concept of the "Monarch", a loyal customer who will return again and again because he or she trusts the retail or service operation and knows that what they expect will be what will be delivered. "The Monarch is still a butterfly. The characteristics we described earlier still describe them. They are intelligent, curious, suspicious, and know their own worth. But the Monarch is a species of butterfly which, despite taking various byways and pathways, can be counted on to return to the familiar on a regular basis. These loyal Monarch Customers are less expensive to attract. It usually doesn't take an expensive advertising campaign or give-away promotion to entice them back to your business. They take less transaction time from your staff and are quicker to buy because they are less skeptical and don't need a large amount of convincing. They are more willing to buy and less price sensitive all around." The authors describe five characteristics of Monarchs: Monarchs always return - sooner or later Monarchs often send someone in their place (i.e. recommending and referring other customers) Monarchs always have an opinion - unlike the disinterested Butterfly customers who would rather switch than fight, Monarch customers always have an opinion that they will share if asked Monarchs share their homework, and will freely provide information on what the competition is doing Monarchs are forgiving and giving: "Monarch customers have a remarkable tolerance for the sheer ordinariness of service life. They know the coffee won't always be at exactly the right temperature and even the perkiest of airline attendants sometimes has a bad day. Customers who are loyal put elasticity in their transactions with you. They allow you to screw up once in a while and often even pitch in to help when the going gets rough." So, the big question becomes how do you create Monarchs from Butterflies (or, on the other side of the coin, how do you prevent your existing loyal Monarchs from abandoning you and becoming Butterflies)? O'Dell and Pajunen maintain that it boils down to building (or re-building, as the case may be) trust with the customer. They propose the idea of the 'service kaleidoscope' - a three dimensional way of looking at a business to determine the extent to which it breeds trust in the customer. These three dimensions are: the media dimension the physical dimension the people dimension If the three dimensions are in harmony with one another, then the customer knows what to expect (and gets it), and develops a feeling of trust with the business. If the three dimensions are out of synch, then a feeling of discomfort and distrust will develop. So, for example, if the media message about a retail environment suggests that offers upscale and quality merchandise, yet the physical surroundings suggest 'bargain warehouse' and the staff are surly and untrained, the customer will experience dissonance and not trust the business. (In O'Dell and Pajunen's terms, their "trust account" will be depleted.) They likely won't be back, having turned into a Butterfly Customer for someone else. Loyal Monarch Customers can be found in those environments where the three dimensions are in accord and support one another. The authors have developed a self assessment tool for a business (which they call a '3-D audit', as it focuses on these three dimensions) and much of the book outlines the questions to be asked and procedures to be followed in undertaking this kind of assessment. Another fundamental point that they make is that there needs to be another kind of three-dimensional harmony in place for a retail or service business to work - this time between the managers, the employees and the stockholders. This underscores for them the importance of leadership in creating the kind of environment that customers will trust - as this will create profits for the business, jobs and wages for the employees, and a return-on-investment for the equity owners. One interesting point of contention for the authors that they deplore frequently throughout the book is the 'service excellence' feats that some other writers have lauded as examples of outstanding customer service (the sort of thing where a hotel front desk clerk charters a plane to return a briefcase that a guest has left). They say that these sorts of things are merely silly stories that raise expectations among consumers, but ultimately only end up costing everybody more (after all, somebody had to pay for that flight, most likely subsequent customers through prices that had to be raised to pay for all these feats of service heroism). The Butterfly Customer is an interesting (if somewhat lightweight) book, with undoubtedly several good ideas about improving retail and service offerings to attract more loyal customers. Whether it really is as possible as they seem to suggest to create and keep loyal customers in this era of ever-proliferating consumer options is an open question at this point.

10 rules to manage your boss

Jacques Horovitz | August 12, 2005

The relationship with your boss is probably the most important relationship you have at work. Boss management can stimulate better performance, improve your working life, job satisfaction, and workload. Give your boss a hand and reap the rewards.
________________________________________
When we think of managing someone, we usually think of managing our team members or subordinates. The above title appeared for the first time a few years ago in a Harvard Business Review article written by two well known socio-psychologists.

Their argument was that in modern companies, subordinates are not solely dependent on their bosses, but that today's complexity requires interdependence: the boss needs her team as well.

I have the vantage point of being an adviser to top management, a CEO, and now as Co-Director of the PED program at IMD. In addition, I have been involved in the restructuring of a major international company, which involves some 12,000 people and 12 hierarchical levels.

In order to unleash the energies and get closer to customers, we divided the group into 250 'small companies' of some 50 people each and of three hierarchical levels. To change the mindset, we organised a 20-day management seminar, during which we discussed the challenge of how to deal with bosses, who in the old structure, tended to hamper change.

The whole process forced me to crystallize my observations and previous experience and test them with the 250 managers. I have grouped the results into ten rules that try to answer some common questions asked by managers with respect to managing their bosses, with the aim of helping the relationship become more effective, foster faster decisions, better decisions and more trust.

1. Decisions: If you do not want a 'no' or procrastination, give him/her a hand
Your boss has other subordinates, other decisions to make. Thus, her (for simplicity, we use 'her' from now on in this article) best bet, if she is pressed for a decision, will be to say no. No, it is too risky; no, we do not have enough evidence; no, it is the wrong timing; no, it is off strategy, et cetera.
• To avoid the 'no' that will ruin your and your team's enthusiasm, give her a hand.

Remind her of where you left it last time you met;
• Remind her of the objective rather than rushing to the 'what' and 'how';
• Remind her of past problems encountered because a decision was not made;
• Quickly summarize the options considered, your criteria for selecting one option -- the one you are presenting;
• Tell her what you expect from her: simply to inform, to decide jointly, to share the risk, to add one criterion, to re-examine the option;
• Focus on the points where you need her help;
• Be prepared with facts/data for potential disagreements. Help her out with graphics and visuals so that the situation is grasped faster;
• After your meeting, summarize for her the decision in writing to make sure of the understanding;
• And finally, once a decision has been made, your way, her way or no way, do not criticize it externally. You have become the best defender; the best ambassador of what was decided.
2. Manage her time: You may represent only 1% of her problems, don't make it as if it is 100%.
Yes, you have preoccupations, problems to solve and issues to tackle. However, while your time is entirely devoted to them, do not expect your boss's time to be also.
• The more simple the problem or issue at hand is, the less time you should have her spend on it: prepare, summarize, and synthesize information and options. Do not confuse your more frequent problems with the most important ones.
• Book her for several meetings in advance. Nothing is more frustrating than to have to wait days, weeks or months for that extra new meeting needed in order to finalize a decision or a project.
3. An opinion: If you ask for her opinion, she will always have one.
Rare are the bosses who, when asked for their advice or their decision, will use the psychological ping-pong approach of retuning the question to the person who asked.
And their opinion may not always be that of a genius or a visionary. However, once given, the opinion becomes a constraint: was it an order? So, if you don't want your boss's opinion to thwart your achievements, to slow the speed of decision-making, or cloud the viewpoint, then don't ask for it. Best of all, don't ask if you don't need her opinion.
• Choose the right moment to avoid procrastination: not only save her time by focusing on big issues, but choose the right moment to do so. If you present an issue at the wrong moment, the chances are she will procrastinate.
• Prepare for your meeting: first because the advantage is to the one who is prepared, second because the preparation helps you reduce the time taken to come to the central issue.
• Show the forest before the trees in a discussion: if you want to avoid spending a lot of time on going back to basics before she is at full speed with you, start with the basics yourself. Remind her of the objective, where you stand today, and what you want her opinion on.
4. Information: It is not data.
Turn grapes into wine: you are supposed to analyze the results of a market survey, and not be the mailman who passes the thick document full of statistics to your boss. So be selective; be visual; group the data; bring out what is essential. Data overload creates stress, which in turn can create denial, rejection, and numbness. As a manager, you are paid to collect the grapes (data), and turn them into wine, i.e. useful information.
• Don't give her only the bad news: give her also the good news. If you keep bringing only bad news, little by little you become the bad news yourself. Don't minimize good news, because you want to focus on the problems. By doing that you contribute to creating a bad atmosphere.
• Make sure she does not get the information from others too often: sometimes by being shy about what we should give or because we think it is not relevant, we don't feed our boss with key elements. However, other people could do it before you. And then the hassle starts. "I heard that…", "Why didn't you tell me that…"
• And then you need to justify yourself; you may need to modify incorrect information. The trade off is between too little information leading to starvation, frustration, and/or restlessness vs too much information leading to overload.
• Round off: what helps more to give sense to an amount or a size: 886,262.11 or 890K? What makes the decision-making process faster: 79.27% vs 21.73% or simply 80% vs 20%. Look back at all the tables you sent to your boss in the last twelve months.
• Participate in and contribute to her informal network: every manager, hopefully, does not rely solely for managing on formal information given in internal documents and reports. Some people use internal informal networks. Some others also have an informal outside network of experts, friends, business connections that help them shape their vision of the world and how to act. You have yours; your boss has too. Why not volunteer part of yours, so that you do not always have to react and be defensive about information fed by people you do not necessarily think are the best sources?
5. Problems: Don't just come with problems, come also with solutions.
Good bosses hate two kinds of behavior. The courtesan who always comes to tell you how great you are and the pyromaniac/fireman who comes to tell you "There is a huge problem" and then says "but don't worry, I will solve it!"
There is also a third kind, the monkey transferor. She has a problem and she puts it on your shoulders, rather than bringing a solution or at least some options.
Problems usually have several aspects. It is usually a gap between an objective and the result; there are options to close the gap; there is a choice of one option to be made; key tasks, dates, people and resources needed must be defined.
On which of those steps in problem solving do you want your boss's input? Just be clear on what input you want rather than come with the stressful -- "I have a problem…" and throw the monkey.
6. Assumptions: Do not assume she knows as much as you do, but assume she can understand; so educate her. Please help, you are the expert. You spend all of your time and that of your team on the issue. You live with data, pressure points and levers; your boss does not. She does not know more than you do.
Most senior executives are even dangerous when they get involved in making micro-decisions, as their point of reference is often not the current one but rather the situation they knew when they were junior managers.
If you need her perspective, it is because it is broader; she has a better sense for inter-relationships with other parts of the organisation. You have two options.
• You inundate her with technical stuff she does not understand, hoping that the amount of technical jargon will knock her down and force her to agree with you. It may work, but it may become a barrier in communication leading to lack of trust.
• You educate him by simplifying, using easy to understand language, feeding him with articles, examples, best practices, summaries that help him see a perspective. By creating understanding, you relieve tensions; create trust that can lead to better decision-making.
7. Delegations: Constantly test the waters.
It is not always easy to define ex ante what is delegated to a person. Some companies prefer to use the principle of subsidiary rather than the principle of delegation: the principle of subsidiary stipulates that you can do everything except the following list, whereas in the principle of delegation you stipulate, "you cannot do anything except…"
Whichever is used, there will always be some doubt whether you have or do not have the delegation. You have two options: either you play it safe by always asking your boss's opinion. This can lead to paralysis, bottlenecks and your own demise, as your boss will think you are unable to take responsibility.
Or you assume too much, take decisions and learn after the fact that it was not yours to decide. In between, there is the 'test the waters' strategy especially for things or areas, domains or steps that are unprecedented.
8. Promises: Do not promise what you cannot deliver, and avoid surprises, trust is at stake.
Trust does not develop overnight and depends a lot on the predictability of the other person: what she says and does, how often she is living up to or not living up to her statements. In the same way, you will not fully trust your boss if she changes her mind too often or says things contrary to what you were told the last time.
You also want to avoid being seen as unreliable by not delivering on what you promise or surprising her with bad news without forewarning.
Do not promise dates for finishing projects you cannot handle. If you see that too much is asked of you, sit down and re-discuss priorities before proceeding, rather than becoming yourself a bottleneck. Involve your boss in the process, so it becomes a common priority.
Avoid bad surprises. If your job is to be in charge of a particular area, then it is also to be in charge of bad results and improving them.
Involve your boss in discussing and evaluating the risks, agreeing on key lead indicators that you will both share, so that neither you nor he will be surprised. For instance, whereas sales are not a good lead indicator, future orders or bookings can be. Cash in the bank is not, whereas good cash flow three months in advance is.
9. Differences: Manage differences in culture.
Sometimes at IMD we use a questionnaire called the Power Map to help participants identify their own culture (i.e. values they cherish, leading to certain behaviors), to identify other executives' profiles and discuss consequences on communication and leadership in a team.
To simplify, the four main types of profiles that our survey identified are:
• People who like to 'control things' and introduce processes, develop more the 'now';
• People who are more concerned with people, develop more the impact on people;
• People who are more concerned with getting things done, start with key actions;
• People who are more concerned with ideas, frame proposals in concepts.
Of course, in managing your boss you should know her personal inclination, as well as your personal bias. If you are process oriented, you will tend to present issues in a systematic and orderly fashion, with pros and cons, chronology of tasks, etc.
If your boss is the action type, she could be bored. So in that case an executive summary, emphasizing the key actions and results would be a handy starting point.
10. Trust: Don't be sloppy in your documentation. It undermines trust.
By making the assumption that she will check what we write or say anyway, and that she will make changes, we sometimes tend to be sloppy in our writing. Tables are not finished, text is not re-read, places we are going to are not visited beforehand, spelling is not checked, and information is missing...

By not finalizing your facts, arguments, memos, spelling, supporting documents, etc., you can be sure some things will get changed, mistakes corrected. And soon you will be asked to show more facts and figures, and you will see more changes, more amendments. Soon all the delegation you had will be gone.

Conclusion Better work between a boss and his subordinate is not just a matter of leadership. It also has to do with boss 'management', which can stimulate better performance, faster decision making and accomplishment of more … by both parties.

Jacques Horovitz is Professor of Service Strategy, Service Marketing & Service Management at IMD, one of the world's leading business schools.

Turbo Strategy

21 Powerful Ways to Transform Your Business and Boost Your Profits Quickly
By Brian Tracy

Businesses are run mostly on auto-pilot and any problem areas are only dealt with when they are already critical, but by then it may already be too late. Most business managers are too busy with the day-to-day work to sit back and look at the business critically in terms of its context and the direction it is going. Brian Tracey's Turbo Strategy provides a checklist of areas that should be regularly examined by all businesses to ensure that it remains on the right path towards success and profitability.

In the book, the author introduces practical techniques that will help you come up with strategies and more importantly turn up profit quickly:

The answers have changed – most businesses operate the way they do because they are “tried” strategies, not because it is efficient and profitable.
Flexibility is essential – from time to time, it is important to take a step back and reevaluate the situation, then do something about it.
The one true measure – two basic questions you need to ask everyday “What is working?” and “What is not working?”

Conduct a Basic Business Analysis

Whenever you go in for a complete medical exam, the doctors and nurses follow a set procedure. In the same way, there are basic business examination questions that you need to ask and answer continuously to determine the overall health of your organization. Remember the following:

The Customer as Centerpiece.
Determine What You Sell.
Define Your Competitor.
Set Clear Goals.

Design Your Ideal Future
Practice Idealization. To do this you must think of what your company would look like five years from now if everything were perfect. Then think in terms of possibilities. Are the goals you set achievable in five years?

Create a Mission Statement and Determine Your Values
A mission statement is essential to an organization because it gives meaning and purpose to the people in their daily activities and work. It inspires loyalty, commitment and become a key factor when making business decisions and when you are clear then you can easily revisit your mission statement and follow its guidelines.

Select the Right People
The two key qualities in finding the best people are that they can be counted on to get the job done well and to get it done on time. Another quality is that they should be good team players.

Market More Effectively
The four essential elements of marketing are: specialization, differentiation, segmentation, and concentration. All marketing elements are important but you should constantly evaluate what you are doing. Remember that the market is changing and changing fast! You may have to change one of your strategies or more than one at the same time.

Analyze Your Competition
You have to know your competition. You have to find out why the customers buy from them, what values and benefits do they get from buying from them. The biggest mistake you can make is to belittle your customers. You have to study them and learn from them.

Three Potential Areas of Superiority
1. Operational Excellence
2. Lead the Field
3. Be Close to the Customer

Change your Marketing Mix

Product – define your product or service in terms of what it “does” for your customers.
Price – be open to the possibility that you may have priced your products or services wrong.
Promotion – this encompasses everything you do in the process of marketing, advertising and sales.
Place – this is the location where the sale of your product takes place.

Position Your Company for Success
Social proof is a major influencing factor to determine whether or not people buy your products or services. Your reputation is the value that people will pay for. Building a brand trust requires personal experiences by people with your products or services. It is very much like a personal reputation that takes a long time to build but can be damaged or destroyed overnight with bad decisions.

Develop Strategic Business Units
The strategic business unit concept revolutionized multi-product or multi-service businesses; each of the products is grouped with similar products or services in different ways. The starting point of implementation is to have someone specifically responsible for the operations and results of the unit. To make this work, you begin by drawing up a complete business plan that would include sales revenue, costs and profitability.

Sell More Effectively The fact is that 80 percent of your markets have not yet been approached by your salespeople. No one has told them about you. Your business could be probably being selling twice as much if you could just find out how to sell it to them.

Eliminate the Bottlenecks
There are two important steps that you need to take. First, decide on your specific business goals; make them clear, measurable and time-bounded. The next step is asking the question: “why am not in that goal already?”

Reengineer Your Company
To simplify and streamline your operations so that it is more efficient, faster and more effective and therefore more profitable, you have to reduce the number of steps in each process. You have to simplify the processes and make faster and better decision.

Pump Up Your Profits Conduct a complete profit analysis on every product. You must also remember that labor has a real “opportunity” cost along with other use of other resources especially in a multi-product or multi-services business.

Focus on Results
All your customers care about is results. They do not care much about your problems with your people, products, processes or any other aspects of your business.

There are four questions that customers answer before buying the product or service. These are:
What does it cost?
What do I get for the money?
How fast do I get the benefits you promise?
How sure can I be that I will get those benefits?

Seven Steps to Personal Performance
Step 1: Set clear, specific, written goals for each important area of your business. Make them measurable and time-bound.
Step 2: Make a list of activities before you begin a day, put it on paper. The best time to do this is before you go to bed so the subconscious mind can work on your list as you sleep.
Step 3: Set priorities on the list you made. Apply the 80/20 rule and select the top 20 percent of your tasks to work on.
Step 4: Practice creative procrastination. Since there are only 24 hours in a day, decide in advance which of those tasks have little value or importance can you do away with.
Step 5: Select the one most important job and have the discipline to accomplish that first thing.
Step 6: Practice single-handling with the most important task you have identified. Resolve to work on it until it is resolved.
Step 7: Develop a sense of urgency. The faster you move, the more work you get done and the better you feel. This will create momentum

7 top skills for great relationships

by Leslie D'Souza.

The author is President, Grid Organisation Development, Mumbai, India.

Regardless of size, industry or nationality, the future of an organisation is determined by its culture. The Grid theory empowers people to create relationships built on candour, confidence, mutual trust and respect. How can that happen in just four-and-a-half days? Leslie D'Souza explains.

For some people, achieving results is all-important. For some, other people matter most: what they feel, think and say. Life events detach some people from reality: they are neither interested in people nor results.

And for others, results and concern for people go hand in hand, one complementing the other. People express their concern for results in different ways. A production manager focuses on volume and quality of production, a sales person on sales results.

A high level of concern for people means the ability to understand and anticipate how others feel, and to consider the impact of certain actions. A low level of concern for other people means avoidance of meaningful interactions and limited direct communication.

There is also a third dimension: motivation, which addresses the basic question, "How is a person motivated for life?" and reflects fundamental values and attitudes that people hold. Motivations that are hard to identify and articulate, clearly reveal themselves through Grid.

Grid styles

In practice, seven distinct styles stand out. These distinct styles emerge when the two concerns (concern for results and concern for people) meet. Studying how the two concerns relate mutually is the key to understanding the styles.

For example, a person has a high (degree of 9) concern for results. She expresses that concern in strikingly different ways if the interacting concern for people is low or high. If it's low, then she comes across as domineering and unilateral, with little concern for the other person's feelings. If it's high, she works in collaboration with the other person to strive for high results.

Reality and self deception

The Grid theory of leadership styles helps define how people relate to one another: how they see themselves, and how others perceive them . Most people carry a clear self-image of their personal effectiveness.

This personal image is however, seldom objective. People evaluate their own actions based on what they intend to achieve and rationalisation protects that self-image. But, when they look at others, they only see the other person's actions, not the underlying intentions.

This protective reaction is a subtle form of self-deception that everyone experiences to some degree. The higher up a person is, the more others say what they think she wants to hear, and the less they confront problems. Lack of candour perpetuates self-deception and blocks improvement.

Can I change my style?

If the manner in which we relate to results and people is based on assumptions and if we can change our assumptions to fit reality; it is possible for us to change our Grid style and progress towards sounder ways to relate with people. It's a journey worth pursuing. There are four basic conditions that need to occur for personal change to take place:
• Theory, insight, knowledge, experience: A sound and clearly defined Grid style allows individuals a new way of doing things, of looking at situations, and of responding to people on a day-to-day basis.
• Removal of self-deception: Personal growth centers around being able to see own behaviour objectively. The key learning comes from understanding how your behaviour is perceived and practicing ways of improvement.
• Realising the motivational gap: Realising the gap between where you want to be and where you are now creates a tension that motivates people to challenge their own self-image and seek out ways to change.
• Team support: Change efforts remain on track by involving people who work with you everyday to help you change.

How does the grid transform behaviour?

Through a two-step process:

• Defining sound and unsound behaviors in tangible terms of seven relationship skills.
• Learning structured critique skills to assess behavior objectively to make constructive suggestions for improvement without offending or creating defensiveness.

The Grid framework brings the theory into practical use by defining seven relationship skills in simple and specific terms of which behaviors do and do not work effectively:
• Critique: How do people learn from experience by anticipating and examining how behaviour and actions affect results?
• Initiative: How do people exercise effort, drive, and support for specific activities?
• Inquiry: How do people question, seek information, and test for understanding?
• Advocacy: How do people express attitudes, opinions, ideas, and convictions?
• Conflict resolution: How do people confront and work through disagreement with others toward a resolution?
• Decision making: How do people evaluate resources, criteria, and consequences to reach a decision?
• Resilience: How do people react to problems, setbacks, and failure, and understand how these factors influence the ability to move forward?

Each Grid style presents in detail the behavioural approaches to these relationship skills, and explores the positive and negative impact on others.

Is there one best style of leading?

Most management gurus and successful managers would say, "No!" Yet, I'm certain that most would not dispute the principles of 9,9 leadership listed below.

What the Grid organisation development process seeks to do is to lay the foundation for sound organisation behavior on a set of core values and principles that individuals embrace and cherish in action. The 9,9 principles are:

• Human activity and productivity gets its character from fulfillment through contribution.
• Being responsible for one's own actions is the highest level of maturity and is only possible through widespread delegation of power and authority.
• Open communication in the form of advocacy, inquiry and active listening is essential for the exercise of self-responsibility.
• Conflict is resolved by confronting the causes and building understanding and agreement.
• Shared participation in problem-solving and decision-making stimulates active involvement and commitment to productivity and creative thinking.
• Merit is the basis of reward.
• Learning from work experience happens through critique.
• Norms and standards that regulate behaviour and performance, support personal and organisational excellence.

The principles listed above do pose a challenge to business leaders and HR professionals. Should they teach managers to change their behavior to fit situations, or should they teach them to influence situations through sound principles of leadership? We only have to read the stories that unfold about WorldCom, Enron and the likes to get an honest answer.

Does the grid put people in pigeonholes?

No it does not. In fact, the purpose of Grid is not to typecast people. The Grid provides a framework to understand the differences between one person and another, and to clarify a motivational gap between ideal and actual behaviors.

Having a theoretical model helps us understand our motivation and basic orientation toward sound and unsound behaviors especially in dealing with conflicts that result from faulty coping with problems.

It offers an opportunity to under-stand how different values and beliefs influence behaviour and determine results. The purpose of Grid is to help individuals and organisations strip self-deception and migrate to the ideal.

An organisation's culture conditions the way members think, feel and act. For change to impact the bottom line, organisations must implement sound management practices and create a culture to support them. Grid advocates the 'The Change by Design' process that is often initiated through an 'organisation diagnosis.'

Emergence from a downward spiral or a stagnant pattern depends on the ability of an organisation to tap its powerful human resources and to establish a climate that promotes satisfaction and stimulates involvement and commitment to the goal of excellence.

Following diagnosis and discussions with top management, a usual first step is for the top management to participate in a Leadership Grid Seminar. Here, we focus on change by providing a basic framework for developing individual excellence and also create a readiness to move forward.

Next, we aid the organisation members to gain a comprehensive understanding of teamwork to strengthen their operating effectiveness.

Once sound leadership and team effectiveness are in use at all levels, members can employ them in shaping the future of the organisation. We then help members of the executive team design a strategic model for achieving organisation excellence.

The cycle of development is complete when an organisation has acquired the skills to plan and implement future changes.

The Essence of Leadership: By N R Narayana Murthy

A leader is an agent of change, and progress is about change. In the words of Robert F Kennedy, 'Progress is a nice word; but change is its motivator.'
Leadership is about raising the aspirations of followers and enthusing people with a desire to reach for the stars. For instance, Mahatma Gandhi created a vision for independence in India and raised the aspirations of our people.
Leadership is about making people say, 'I will walk on water for you.' It is about creating a worthy dream and helping people achieve it.
Robert Kennedy, summed up leadership best when he said, 'Others see things as they are and wonder why; I see them as they are not and say why not?'

Adversity
A leader has to raise the confidence of followers. He should make them understand that tough times are part of life and that they will come out better at the end of it. He has to sustain their hope, and their energy levels to handle the difficult days.

There is no better example of this than Winston Churchill. His courageous leadership as prime minister for Great Britain successfully led the British people from the brink of defeat during World War II. He raised his people's hopes with the words, 'These are not dark days; these are great days -- the greatest days our country has ever lived.'

Never is strong leadership more needed than in a crisis. In the words of Seneca, the Greek philosopher, 'Fire is the test of gold; adversity, of strong men.'

Values

The leader has to create hope. He has to create a plausible story about a better future for the organisation: everyone should be able to see the rainbow and catch a part of it.

This requires creating trust in people. And to create trust, the leader has to subscribe to a value system: a protocol for behavior that enhances the confidence, commitment and enthusiasm of the people.

Compliance to a value system creates the environment for people to have high aspirations, self esteem, belief in fundamental values, confidence in the future and the enthusiasm necessary to take up apparently difficult tasks. Leaders have to walk the talk and demonstrate their commitment to a value system.

As Mahatma Gandhi said, 'We must become the change we want to see in the world.' Leaders have to prove their belief in sacrifice and hard work. Such behavior will enthuse the employees to make bigger sacrifices. It will help win the team's confidence, help leaders become credible, and help create trust in their ideas.

Enhancing trust

Trust and confidence can only exist where there is a premium on transparency. The leader has to create an environment where each person feels secure enough to be able to disclose his or her mistakes, and resolves to improve.

Investors respect such organisations. Investors understand that the business will have good times and bad times. What they want you to do is to level with them at all times. They want you to disclose bad news on a proactive basis. At Infosys, our philosophy has always been, 'When in doubt, disclose.'

Governance

Good corporate governance is about maximising shareholder value on a sustainable basis while ensuring fairness to all stakeholders: customers, vendor-partners, investors, employees, government and society.

A successful organisation tides over many downturns. The best index of success is its longevity. This is predicated on adhering to the finest levels of corporate governance.

At Infosys, we have consistently adopted transparency and disclosure standards even before law mandated it. In 1995, Infosys suffered losses in the secondary market. Under Indian GAAP (generally accepted accounting principles), we were not required to make this information public. Nevertheless, we published this information in our annual report.

Fearless environment

Transparency about the organisation's operations should be accompanied by an open environment inside the organisation. You have to create an environment where any employee can disagree with you without fear of reprisal.
In such a case, everyone makes suggestions for the common good. In the end everyone will be better off.

On the other hand, at Enron, the CFO was running an empire where people were afraid to speak. In some other cases, the whistle blowers have been harassed and thrown out of the company.

Managerial remuneration

We have gone towards excessive salaries and options for senior management staff. At one company, the CEO's employment contract not only set out the model of the Mercedes the company would buy him, but also promised a monthly first-class air ticket for his mother, along with a cash bonus of $10 million and other benefits.
Not surprisingly, this company has already filed for bankruptcy.
Managerial remuneration should be based on three principles:
• Fairness with respect to the compensation of other employees;
• Transparency with respect to shareholders and employees;
• Accountability with respect to linking compensation with corporate performance.
Thus, the compensation should have a fixed component and a variable component. The variable component should be linked to achieving long-term objectives of the firm. Senior management should swim or sink with the fortunes of the company.
Senior management compensation should be reviewed by the compensation committee of the board, which should consist only of independent directors. Further, this should be approved by the shareholders.
I've been asked, 'How can I ask for limits on senior management compensation when I have made millions myself?' A fair question with a straightforward answer: two systems are at play here. One is that of the promoter, the risk taker and the capital markets; and the other is that of professional management and compensation structures.
One cannot mix these two distinct systems, otherwise entrepreneurship will be stifled, and no new companies will come up, no progress can take place. At the same time, there has to be fairness in compensation: there cannot be huge differences between the top most and the bottom rung of the ladder within an organisation.

PSPD model

A well run organisation embraces and practices a sound Predictability-Sustainability-Profitability-Derisking (we call this the PSPD model at Infosys) model. Indeed, the long-term success of an organisation depends on having a model that scales up profitably.

Further, every organisation must have a good derisking approach that recognises, measures and mitigates risk along every dimension.

Integrity

Strong leadership in adverse times helps win the trust of the stakeholders, making it more likely that they will stand by you in your hour of need. As leaders who dream of growth and progress, integrity is your most wanted attribute.
Lead your teams to fight for the truth and never compromise on your values. I am confident that our corporate leaders, through honest and desirable behaviour, will reap long-term benefits for their stakeholders.

Two mottos

In conclusion, keep in mind two Sanskrit sentences: Sathyannasti Paro Dharma (there is no dharma greater than adherence to truth); and Satyameva jayate (truth alone triumphs). Let these be your motto for good corporate leadership.

The author is Chairman and Chief Mentor, Infosys Technologies.

The 6 great tips for improvement

by Debashis Sarkar |

Process improvements seldom happen by accident. Debashis Sarkar argues that a well thought out plan must incorporate the 'ACCEPT' principles.
________________________________________
Process improvements are an integral part of all quality programmes. Irrespective of the type of industry, all process improvements are touched by a few principles which are vital to their success. Ignoring any of these principles can be detrimental to the expected outcome of the improvement project and their subsequent sustenance.
Whether it is process improvements through Six Sigma, Lean S, TRIZ, TOC (Theory of Constraints) or any other methodology, these principles are universally applicable. I call it the 'ACCEPT principles for process improvements.'

1. Ability of the leader to ask the right questions

Ability of leaders to ask the right questions is critical to the success of a project. The type of questions will determine the quality of process improvements. If leaders do not know what to look for, teams would get the message that they can get away with whatever is possible.

The questions of a leader should be around 'why the problem occurred', 'what is the purpose and business case', 'what will take to accomplish', 'what are the data sources', 'how would it impact the customer, business and overall system' and 'who is accountable'.

It is imperative that leaders make an effort to understand the broad approach to improvement and the type of language being used by the Improvement specialist. This is the reason why Six Sigma methodology requires leaders to go through a Champion's Workshop or a session which gives the brief on Six Sigma, what to look for and what questions to ask.

2. Commit to the right metrics

A fallout of a successful process improvement is installation of metrics. A good process management should include an optimum balance of 'result metrics' and 'process metrics.' The result metrics measure the output quality while the process metrics help in predicting the process output.

The former acts a lead indicator while the latter acts as a lag indicator. The term 'process data' is a bit of a misnomer because all data are the consequence of some antecedent event. However, we refer to these data as they provide sufficiently early indicators such that we can adjust the process before the undesirable condition occurs.

Installation of process measurements should be in two stages. In the first stage of process improvement establish a system to measure the results (outputs) through result metrics. In the second stage add a system that enables proactive management of process outcomes through process metrics.

Remember, measurements should be targetted at improving the effective-ness, efficiency and adaptability of the process.

3. Communicate 'why are we doing what we are doing'

Do not launch an improvement programme without a purpose. Bereft of a purpose there is no framework for establishing priorities, aligning efforts or judging success. Much improvement process fails because the effort is squandered in improving unimportant processes.

Further, it is imperative that all people working in the process are made aware why has the process been taken up for improvement and how does it affect the larger picture. Often the involvement levels of process teams are not adequate because they have not been sensitized on the importance of the initiative and how it would impact the business and them.

It is the duty of leaders, improvement specialist and process owners to relentlessly communicate to all concerned the purpose of the improvement.

4. Ensure system level improvement

Organisations carry out a lot local process improvements without realising how they impact the entire system. It is imperative that we understand the concept of integration and alignment of processes and how it helps in achievement of overall objectives of the system.
The processes should be managed as a system and we need to understand the process networks and their interactions. The outputs from one process may be inputs to other processes and interlinked into the overall network or system. Carry out process improvements with the overall performance of the system in mind.
The worst thing to happen is that a process is optimized but the entire system turns sub-optimal. The effort of the organisation should be to inculcate in its employees to understand systems, lead systems, and think systemically. As Fuji Cho, President Toyota Motor Company, mentions in Jeffrey K. Liker's book The Toyota Way, 'The key to the Toyota Way and what makes Toyota stand out is not any of the individual elements. . . But what is important is having all the elements together as a system. It must be practiced every day in a very consistent manner - not in spurts.'

5. Promote organic growth of capabilities

There are no off-the-shelf approach to improvements. Effective process improvements take time and need to gradually seep deep and wide. Don't set unrealistic timelines as it may lead to bogus improvements without creating the desired capabilities to carry the initiative on an ongoing basis.
Be wary of consultants who are ready to carry out improvements on your behalf. Remember, they are your greatest enemy as they shall carry out improvements without leaving back competencies with the organisation.
Improvements carried out should be self-sustaining and this is possible when there is sufficient number of trained employees within the organisation. In the early days management push may work but in the long run sustenance requires motivated individuals who have the relevant competencies.
The competency development should be in the following areas:
1. Quality methodology used for improvement;
2. Process management and sustenance; and
3. New process.

6. Teams

Just not teams but 'effective teams' are required for process improvements. Teams are the engines that deliver successful process improvements. It is the duty of management to ensure that right teams are put in place and that they are effective.
While there are many traits, the five key characteristics of an effective team for process improvements are:
• Teams should have a clear defined purpose;
• Teams should be cross functional and have representation of all stakeholders of the process;
• Teams should be empowered to take all required decisions;
• All team members should be trained on the improvement methodology;
• Team members should have good change management skills.

90/10 Principle By: Steven Covey

Discover the 90/10 Principle. It will change your life (at least the way you react to situations).

What is this principle?

10% of life is made up of what happens to you.
90% of life is decided by how you react. What does this mean?

We really have no control over 10% of what happens to us. We cannot stop the car from breaking down. The plane will be late arriving, which throws our whole schedule off. A driver may cut us off in traffic. We have no control over this 10%. The other 90% is different. You determine the other 90%.

How? By your reaction. You cannot control a red light. However, you can control your reaction. Do not let people fool you; YOU can control how you react.Let us use an example: You are eating breakfast with your family. Your daughter knocks over a cup of coffee onto your business shirt. You have no control over what just happened. What happens next will be determined by how you react. You curse. You harshly scold your daughter for knocking the cup over. She breaks down in tears. After scolding her, you turn to your spouse and criticize her for placing the cup too close to the edge of the table. A short verbal battle follows. You storm upstairs and change your shirt. Back downstairs, you find your daughter has been too busy crying to finish breakfast and get ready for school. She misses the bus. Your spouse must leave immediately for work.You rush to the car and drive your daughter to school. Because you are late, you drive 40 miles an hour in a 30 mph speed limit zone. After a 15-minute delay and throwing $60 traffic fine away, you arrive at school. Your daughter runs into the building without saying good-bye.

After arriving at the office 20 minutes late, you find you forgot your briefcase. Your day has started terrible. As it continues, it seems to get worse and worse. You look forward to coming home, When you arrive home, you find small wedge in your relationship with your spouse and daughter.

Why? Because of how you reacted in the morning. Why did you have a bad day?
A. Did the coffee cause it?
B. Did your daughter cause it?
C. Did the policeman cause it?
D. Did you cause it?

The answer is "D".

You had no control over what happened with the coffee. How you reacted in those 5 seconds is what caused your bad day. Here is what could have and should have happened. Coffee splashes over you. Your daughter is about to cry. You gently say, "Its OK honey, you just need to be more careful next time". Grabbing a towel, you rush upstairs.After grabbing a new shirt and your briefcase, you come back down in time to look through the window and see your child getting on the bus. She turns and waves.

You arrive 5 minutes early and cheerfully greet the staff. Your boss comments on how good the day you are having.

Notice the difference?

Two different scenarios. Both started the same. Both ended different. Why? Because of how you REACTED. You really do not have any control over 10% of what happens. The other 90% was determined by your reaction. Here are some ways to apply the 90/10 principle.

If someone says something negative about you, do not be a sponge. Let the attack roll off like water on glass. You do not have to let the negative comment affect you! React properly and it will not ruin your day. A wrong reaction could result in losing a friend, being fired, getting stressed out etc.

How do you react if someone cuts you off in traffic?

* Do you lose your temper?
* Pound on the steering wheel? (A friend of mine had the steering wheel fall Off)
* Do you curse?
* Does your blood pressure skyrocket?
* Do you try to bump them?

WHO CARES if you arrive ten seconds later at work? Why let the cars ruin your drive.
Remember the 90/10 principle, and do not worry about it. You are told you lost your job. Why lose sleep and get irritated? It will work out. Use your worrying energy and time into finding another job.

The plane is late; it is going to mangle your schedule for the day. Why take out your frustration on the flight attendant? She has no control over what is going on. Use your time to study, get to know the other passenger. Why are stressed out? It will just make things worse. Now you know the 90-10 principle. Apply it and you will be amazed at the results. You will lose nothing if you try it.

The 90-10 principle is incredible. Very few know and apply this principle.

The Oz Principle

This article is based on the following book:

The Oz Principle : Getting Results Through Individual and Organizational Accountability

In The Oz Principle, Connors, Smith, and Hickman brilliantly use the analogy of “The Wizard of Oz” to discuss a business philosophy aimed in propelling individuals and organizations to overcome unfavorable circumstances and achieve desired results. This philosophy can be encompassed in one word: ACCOUNTABILITY.

The eponymous principle builds upon the ethos of personal and organizational accountability. It explores the root cause of an organization’s impediments to exceptional performance and productivity, and provides great insight on how to re-establish a business from the bottom up, emphasizing on the thin line that separates success from failure. The Above The Line, Below The Line methodology is the driving force behind The Oz Principle.

The Oz Principle: Getting Results through Accountability

Just like Dorothy’s search for the Wizard of Oz for enlightenment, individuals and organizations also seek out the wizard that will save them from the maladies that afflict their workplace. However, the wizard is just a distraction, bearing new-fangled business philosophies and management fads that will only create a layer atop the ugly truth that needs to be revealed. When the core problem is not addressed, the ills will eventually resurface and the business is back to its sorry state.

Victim Thinking or Failed Accountability

When a company suffers from poor performance or unsatisfactory results, individuals from top management all the way to the front line begin finger-pointing, forming excuses, rationalizing, and justifying, instead of doing something to alleviate the situation. They foolishly profess that the circumstances have made victims of them, that the events are completely out of their control, and that they shouldn’t be blamed for the company’s current problems. It’s always something or someone else, never themselves.

Above The Line, Below The Line

A thin line separates failure and success, greatness and mediocrity.Above The Line, you’ll find the Steps to Accountability which include in chronological order: See It, Own It, Solve It, and Do It. The first step, See It, means acknowledging the problem; to Own It is to assume responsibility for the problem and the results; Solve It means to formulate solutions to remedy the situation; and, as a culminating step, Do It commands the practical application of the solutions identified.

Below The Line is where the self-professed victims play The Blame Game. Here, crippling attitudes such as Wait and See, Confusion/Tell Me What To Do, It’s Not My Job, Ignore/Deny, Finger Pointing, and Cover Your Tail are rampant. Though majority of the people found in this dimension are weak in accountability, this does not mean that very accountable individuals are exempt from falling Below The Line. They, too, slip every now and then. The only difference is that they know how to get out of the rut.

A Simple Solution to Victimization

Individuals and organizations Below The Line languish in self-pity until they get trapped in the “I Am a Victim” mind-set and find it hard to break free from the vicious cycle. Accountability offers a very simple choice to make, albeit a difficult one to act upon: “You can either get stuck or get results.” So stark in its simplicity that most people fail to realize that the ball has always been in their court.

The Power of Individual Accountability: Moving Yourself Above The Line

The first step to accountability is recognizing the problem. It takes great courage to admit that you are stuck in a difficult situation. Most people, however, fail to view reality the way it is because they choose to ignore it or they accept the situation as the status quo and go along with it.

To commence the march up the Steps to Accountability, you must first muster the courage to: a) recognize when you fall Below The Line; b) realize that remaining Below The Line not only ignores the real problem but leads to increasingly poor results; and c) acknowledge and accept reality as the first step toward taking accountability.

Mustering the courage to See It will lead to the next step, Owning It. Here, you must have the heart to own the circumstances you’ve recognized in the See It step as well as the results that will come from the course of action you plan to take.

“What else can I do to rise above my circumstances and achieve the results I want?” That is the question to continually ask yourself when you find yourself stuck in a stubborn situation. Apart from creating solutions, Solving It also involves foresight in determining the worst possible scenario that can happen, and being prepared to battle it head on.

Having solutions is not enough if you neglect practical application. You can’t Do It unless you make yourself accountable not only for immediate circumstances but also for future accomplishment. With this, you are empowering not only yourself but also your organization.

It’s so easy to be pulled back Below The Line, especially if you don’t accept full accountability for the situation and the future. A lot people are afraid to become accountable because they fear the risks associated with it. However, know that without taking the big leap, you will never get anywhere.

Ideas Are Free

By Alan G. Robinson and Dean M. Schroeder

Without great ideas, no organization can stay afloat, much less flourish. Managers and top executives are constantly struggling to come up with big ones – creative marketing strategies, ingenious cost-cutting schemes and other corporate solutions that will save time and money and improve productivity. But what few of them realize is that right under their noses is a virtually limitless source of valuable ideas – ideas that can revolutionize their company and help bring substantial and sustainable competitive advantage. These great ideas come, surprisingly, from the lowest point of the corporate food chain – from the frontline employees who do the “dirty” work and who therefore see a lot of problems and opportunities that their managers do not.

Employee ideas are a lot more valuable than most managers think. More importantly, they can be had virtually for free, if you know how. This book teaches the most effective methods for tapping this “hidden” resource, based on extensive research in more than 300 organizations around the world. It offers precise techniques for setting up an idea management system that can empower your people, transform your organization and make you a much more effective leader.

The Idea Revolution
In traditional companies there are two distinct types of workers:

• The thinkers – the supervisors, managers and other executives; and
• The doers – the frontline employees.

The rationale behind this division is that regular workers are not capable of the kind of critical thinking needed for problem solving and strategy formulation, and therefore they should not participate in brainstorming.

The Idea Revolution invites you to break free from this old, limiting thinking pattern and to change the rules, because the truth is that although your frontline workers may indeed not have the knack for strategic planning, they do possess other, equally valuable type of knowledge – detailed, practical information about the company’s daily operations, and common sense. Because they are actually where the action is, so to speak, they see a lot of things that you do not – what the customers really need, what machines are not working, what is being wasted. And often they know what to do to make things better.

The only thing you need to do is to ask and to welcome, not discourage, their ideas.

Why Employee Ideas are Important

In most organizations only the first type of knowledge is encouraged. The other kind is not only discouraged, but actually suppressed. But actually both are needed to run an efficient company. Managers and employees need to cooperate, to contribute what they know in order to come up with workable solutions and significant improvements.

Managers and supervisors can tend to generalize issues and gloss over certain details, while employees who work directly with what is causing the problem know exactly what is wrong and what should be done about it. Their knowledge of the problem is direct and intimate, and they can provide accurate solutions. They know things by experience, not by theory.

The Power of Small Ideas

Big ideas are always more attractive – they are splashier, grander, always more promising. Managers are therefore more likely to weed out “small” ideas and go for the really big ones, the “home runs” – those that could help generate millions of dollars in revenue or topple the competition, instantly. But when it comes to ideas, small does not always mean ineffective or weak. In fact, in organizations it is often smarter to focus on small ideas rather than on big ones.

Idea Management

As simple as it sounds, getting and using employee ideas to improve your organization’s performance entails a lot of planning, preparation and hard work. Two crucial issues that you would have to deal with are:

• How can the employees be encouraged or motivated to come up with so many ideas?
• Who has time to deal with all of them?

After all, once the ideas start pouring in, they would each have to be evaluated, and then implemented. These are non-value adding tasks that can take up all of your valuable time. The only way you can effectively manage employee ideas is by setting up a good idea system, one that will make the process, which can become messy, organized and productive.

Profound Change

By encouraging the free flow of ideas, you will have the opportunity to bring about a profound transformation within your organization, one that could not only boost its overall performance, but would also liberate the people who work within it.

Idea systems have the power to change the very culture of an organization, by bringing about more trust, respect, openness, commitment and harmony among its people.

When employees see that their ideas are valued, their attitudes change, from one of detachment and frustration to involvement and fulfillment. This not only uplifts the quality of their lives, but also brings about real growth in the organization.

Stick to your core proposition!!

How Starbucks Strayed

Case Study: Automatic Espresso Machines, Day-Old Food and Plastic Chairs

By Kate Macarthur

Published: March 05, 2007

CHICAGO (AdAge.com) -- In the wake of the Starbucks "Memo Shot Round the World" from Chairman Howard Shultz on the looming commoditization of its brand, we asked the experts how they would restore the mythical Starbucks Experience.

Joseph Michelli, author of "The Starbucks Experience: Five Principles for Turning Ordinary into Extraordinary": "They can make sure the sensory experience at Starbucks is rich" by bringing back coffee aromas with fresh grinding and reinforcing the notion of affordable luxury by making sure knowledgeable baristas French-press coffee. It also means nixing plastic chairs and bringing back the living-room feel. "It is all the details of the physical environment."

Seth Godin, author of "Small is the New Big": "They have to bring the audience with them as they move the masses back to authenticity," starting with "fixing the coffee and figuring out how to sell something you can eat." He said the bigger question is: "Should Starbucks be willing to take a short-term stock and market-share hit in order to return to its authenticity?" When it comes to brands, "shareholders, in the long run, are always wrong," he said, adding: "In order to be big, they have to give up stuff."

Mark Gobe, chairman-CEO of Desgrippes Gobe and author of "BrandJam: Humanizing the Brand Through Emotional Design": Starbucks should ask its consumers why they went there in the first place and what is missing now, he said. The chain needs to decide whether it is mass or luxury mass. "Brands have to find their limitations. ... You have to know where you're going to disconnect from consumers."

Bob Goldin, exec VP of food consultant Technomic: "The company needs to better understand how the customer point of view has changed" in the past decade. While he isn't convinced McDonald's will supplant Starbucks as the place for Gen Y consumers to park their laptops on a Saturday night ("That place smells like french fries"), he does agree Starbucks needs to make "significant improvements" to its food program, including managing its ubiquity and push for turning out specialty beverages at a rapid pace.

Larry Wu, VP-consumer strategist food and beverage, Iconoculture: Of all the experts we polled, perhaps Mr. Wu knows the brand best. A former director of research and development for Starbucks, he said, "It used to be about great service, knowledgeable expertise and love of coffee. Now it's about love of profit, margin and growth." He said stores are too small and understaffed: "That's why [baristas] make shortcuts now." The chain "should look at capacity instead of just speed." Finally, he said, Starbucks "should pull back on the food and make coffee the core again."

David Aaker, VP of Prophet and professor of marketing at University of California at Berkeley's Haas School of Business: "This is a portfolio problem. Once you get into supermarkets, it's not easy to pull back." But he said it's possible. "One option would be to create a sub-brand for an upscale Starbucks." It's an idea much like the Hallmark Gold Crown concept, where the chain could create an experience around the original Starbucks for customers who want that level of service vs. the grab-and-go business the company has developed.

Bryant Simon, professor of history and director of American studies at Temple University, who visited 400 locations to research his coming book, "Consuming Starbucks": "There's no reason not to put a semi-automated machine in the drive-thru," and then push its notion of authenticity and coffee theater in its flagship stores. "Give up some of the volume and, like Nike, make it a [showroom] store about coffee."

Primal Leadership

This article is based on the following book: Primal Leadership“Leading To Lead With Emotional Intelligence” By Daniel Goleman, Richard Boyatzis, Annie Mckee Published by Harvard Business School Press.

Primal leadership takes center stage in this book. This concept goes beyond the set of conventional competencies on the making of a leader. Beyond bottom line figures, this book takes a leap forward with the concept of primal leadership through a keen and in-depth understanding of emotional intelligence and its link to leading and building emotionally intelligent organizations.The authors explore the idea of leadership as an emotional function.

They propose that the fundamental task of a leader is to create resonance at work, thereby unleashing positive traits and attributes in people. Emotionally intelligent leaders bring organizational success to the fore because they inspire, motivate and foster commitment in people.Harness the power of primal leadership in this book and bring out the emotionally intelligent leader in you.Primal Dimension of Leadership The use of emotion in leadership functions is a primal task that sets leaders apart. Great leaders move people by channeling emotions in the right direction, whether it is in formulating corporate strategy in the boardroom or a series of action items in the shop floor.

Resonance EffectThe positive channeling of emotions that empowers people to be top performers is called resonance. The culture of resonance brings out the best in people. On the other hand, when leaders negatively drive emotions dissonance is created. Dissonance is not conducive to harmonious working relationships as it can undermine people’s potentials.Key to Primal LeadershipEmotional intelligence is the foundation of making primal leadership work. An emotionally intelligent leader knows how to handle himself and his relationship with the people he works with in order to drive up performance.Good Moods, Good WorkA good mood is essential for a team to function effectively. It is crucial for a leader to foster positive working relationships because emotional conflicts in a group can hamper a team’s performance.

A study of CEOs from Fortune 500 companies revealed that positive overall mood of top management people leads to better cooperation and better business performance. This argument takes the view that it is top management that creates the conditions for workers to work well.

Resonant LeaderFor emotionally intelligent leaders, resonance comes naturally in their dealings with people. Their actions reinforce synchrony within their team and within the organization. The strength of an emotionally resonant leader lies in the emotional bond he forms which allows people to collaborate with each other even in the face of change and uncertainty.

Four Dimensions of Emotional IntelligenceThe creation of resonance is a hallmark of primal leadership that can only be fostered by emotionally intelligent leaders. For a leader to promote prime resonance in a group, it is important to understand the four EI competencies. Interestingly, these competencies are not innately inherent but are learned abilities. According to research, an effective leader typically demonstrates at least one competence among the four dimensions.

1. Self-Awareness
2. Self-Management
3. Social Awareness
4. Relationship ManagementApproaches to Leadership in a Nutshell

1. Visionary 2. Coaching 3. Affiliative 4. Democratic

5. Pacesetting
6. CommandingThe Five Discoveries of Self-Directed Learning

1. First Discovery: My ideal self – Who do I want to be?
2. Second Discovery: My real self – Who am I? What are my strengths and gaps?
3. Third Discovery: My learning agenda – How can I build on my strengths while reducing my gaps?
4. Fourth Discovery: Experimenting with and practicing new behaviors, thoughts, and feelings to the point of mastery.
5. Fifth Discovery: Developing supportive and trusting relationships that make change possible.

Final NotesPrimal leadership is anchored on emotions. These emotions have underlying neurological explanations to them such as the open loop system. Thus, a leader must work hard to obtain emotional intelligence competencies that will make him a resonant leader because resonance is the key to primal leadership.A resonant leader builds a culture of resonance by demonstrating emotionally intelligent abilities that permeate throughout the organization. A resonant leader aims to live a resonant life for him and his people in order to make resonant work. It is this kind of work that builds an emotionally intelligent organization – a kind of organization that can survive the changing business climate because it has built-in processes that can sustain change.

Little Things Mean a Lot

How do you care for your customers and employees?

"Just as the accumulation of small improvements can make a dramatic, lasting change in the organization’s products or services, the repeated, numerous small occasions of taking note of the contributions of individuals and teams of individuals can create a different company." (The Quality Process: Little Things Mean a Lot)

Showing appreciation to both clients and team members (formerly employees) is an integral part of a successful business. Too often we overlook it. It’s easy to take existing clients for granted while making special efforts to attract new ones. Many of us are guilty of assuming we take care of our team by simply giving them a pay cheque.

Respect Your Team Members (Employees)

"In environments in which human needs are acknowledged and talent and creativity are allowed to flourish, employees give their all." (Creating Successful Partnerships with Employees)
The most valuable asset in an organization is the people. Mark Twain once said, "I can go two months on one compliment!" When was the last time you said "well done" to anyone in your business? Appreciation is the number one thing people want from their jobs, even before money and promotions, according to a Robert Half survey.

If you think you don’t have the time or the budget to start an appreciation program in your workplace, think again. There are dozens of easy, inexpensive ways to generate spirit and appreciation.

· Companies often focus on single goals (such as annual sales quotas) and forget to celebrate the little successes that add up to the main goal. Recognize the little victories along the way and keep everyone motivated for the ultimate goal. How about treating everyone to an ice cream break or a hot dog lunch?
· Foster an environment that encourages creativity and mutual respect. Be generous in small ways. Keep a large candy jar in your reception area filled with fun, kid-style candies, suckers, or bubble gum. Or, fill it with slips of paper with jokes or motivational sayings on them. Put a small treat in employees’ mail/message boxes. On a hot day, bring in Popsicles. Encourage everyone in your organization to take their work seriously but themselves lightly.
· Treat your team members as individuals, not just part of your organization. Recognize special times in their lives such as marriages and births.
· Keep a well-stocked refreshment area for both team members and clients. Fill it with coffee, teas, bottled water, juices, and maybe a big cookie or candy jar!
· Let your people know you care about their work environment. Do you think those walls that need painting or the torn and dirty carpet doesn’t affect them, or that dirty washrooms and lunchrooms are acceptable? These all say a lot about your attitude towards them. Show pride and respect for yourself, your business, your team, and your clients by keeping a well-maintained place of business.
· Celebrate together and show you care about morale. Hold Christmas parties, summer picnics, or golf tournaments. Ask your suppliers to donate prizes.

Appreciate Your Customers

Most people like to do business with people they like and who appreciate them.
How much money do you spend trying to attract new customers, and how much do you spend showing your existing customers that you care about them? It costs much less to keep a customer than to find a new one. Make customer appreciation a part of your everyday activities.
· Keep a stack of thank-you cards at your desk. Get in the habit at the end of each day to think about those who gave you their time or their business. In this age of electronic communications, we all appreciate an old-fashioned handwritten note. Don’t just pick up the phone to say thanks - put it in writing. The cost is small, but the impact is large. You’ll be noticed for your thoughtfulness.
· Recognize your client’s special events and milestones such as business anniversaries, promotions, and moves. Work with a gift basket company or florist to create a signature gift that you can send whenever the need arises.
· Hold an annual customer appreciation day.
· Insist that everyone in your organization show respect and appreciation to every customer - big or small. After all, if we didn’t have customers, we wouldn’t be in business. Starting right now, find ways to show your team and clients that you care! Customers don’t deal with companies - they deal with people. So, if you want first-class customers you must have first-class team members to attract them.

The Servant - Book Summary

"A Simple Story About the True Essence of Leadership" In order to lead, you must serve. This is the solid premise of the book “The Servant” by James C. Hunter. It is discussed through the tale of John Daily, a business executive who starts to lose his grip as boss, husband, father, and coach. He was talked into going on a week-long retreat at a Benedictine Monastery to re-center and find his balance. During the retreat, a former Wall Street legend turned monk shows him a different perspective on leadership - servant leadership.

The Ten Attributes of Love and LeadershipThe book enumerated the following as the qualities of a servant leader. Incidentally, these are also the attributes of love, which was defined earlier as one’s behavior towards others.

• Patient - showing self-control.
• Kind - giving attention, appreciation, and encouragement.
• Humble - being authentic without pretense or arrogance.
• Respectful - treating others as important people.
• Selfless - meeting the needs of others.
• Forgiving - giving up resentment when wronged.
• Honest - being free from deception.
• Committed - sticking to your choices.

All these behaviors will entail you to serve and sacrifice for others. This would mean setting aside your own wants and needs to focus on the legitimate needs of others.You need to realize that success does not only come from hard work and appropriately playing the part. To be successful in business and in your career, you must be able to distinguish yourself from the rest of the pack - you need to develop, build and defend your reputation.

The Law of the Harvest Remember: you reap what you sow. For authority or influence to flourish, the right environment must be provided and a nurturing behavior must be present. In a garden, the soil, the sun, the water, the fertilizer, and the care given by the gardener all make up the environment under which the plant will grow and mature. The one thing that you are not sure of, however, is when the flowers will actually bloom. Bear in mind that influence is not a magical beanstalk that will sprout overnight; rather, it is something that grows in time.

The Rewards of Leading with AuthorityLeading with authority enables you to have a personal mission statement: to serve the people you lead, to listen to their needs, to give praise and recognition, to show kindness, and to be honest, among other things. When servant leadership becomes your ethos in life, people would be lining up to join your cause.By serving others and loving your neighbors, you are keeping in line with the doctrines of the Church as well as other religions. You mature psychologically and spiritually, which is essentially the end goal of the individual’s journey through life.While the above payoffs are well and good, the most important reward of all is the joy you will experience when you put others first and free yourself from the chains of self-centeredness. As a certain Dr. Albert Schweitzer wisely puts it, “I don’t know what your destiny will be, but one thing I do know. The only ones among you who will be really happy are those who will have sought and found how to serve.”

The five faces of Genius..

by Annette Moser-Wellman

Most managers believe that if they manage well they will succeed. But in rapidly changing markets, being a good manager is less important than being an innovator. Those who can come up with new ideas - those who can create - become the leaders of the organization and the industry.

So, personal creativity is the skill we need the most but are taught the least. Did you have any courses on how to be a creative thinker? Of course not. Most of us live by the assumption that creativity is a gift one has or doesn't have. Our formal education usually trains the creativity out of us. And in business, being an innovator will be the next core competency - the essential capability for success.

So who do we model to help us learn these necessary skills? I've spent my career studying creativity in the arts and the sciences. When you look to some of the creative genius of our world, you find patterns of thinking that can augment our lives and increase our probability of new ideas in business.

Below is a framework of some of the most powerful skills in a creative genius and how the same skills are used in business. I call them the five faces of genius.

The seer
When painters begin to paint, they have an image in their mind's eye - an internal picture they "see". When musicians write music, they often have a musical score that appears in their mind. The great writer Robertson Davies said, "What appears in my head is a picture that somehow must be considered." The visual stimulates the new idea.
And the same is true in business. Bill Gates said that the original vision for Microsoft was "a PC on every desk and in every home." It was the image that created the future. When executives meet in our workshops, they describe new products they see, new marketing ideas or even new businesses. Ideas come - not when we use our linear side but when we use our visual intuition.

The observer
Before Ray Kroc was the head of the McDonald's franchise, he was a milkshake mixer salesman. When reviewing a list of clients, he noticed one small detail. One customer was buying enough milkshake mixers to make 40 milkshakes at one time. This made Kroc curious.
He travelled long distances to see the McDonald's restaurant. He was so impressed that he joined the McDonald's family to build the franchise.
Observers pay attention to small things and get big ideas from those details. Former Sony president Akio Morita developed the Walk-Man when he got the idea from a small thing he noticed. During a party for one of his teenagers, he saw that kids were lugging heavy stereo equipment from one room to the next. Morito asked himself, "What if music was portable?" and the Walk-Man was born.

The alchemist
Do you frequently ask yourself, "where have I seen this problem before?" The "alchemist" uses the world around them to come up with new ideas. Physicists, for instance, find breakthrough theoretical ideas by creating analogies of the natural world.
You may use your alchemistic skill everyday and not know it. Marlboro cigarettes was a brainstorm of advertising guru, Leo Burnett. Burnett was flipping through a magazine and stumbled on a retrospective of the American cowboy. He connected the need to reposition the cigarette with the love of the cowboy. It was through this connection that the icon of one of the world's biggest brands was born.

The fool
Most managers say, "I don't want to be a fool!" but in fact the "fool" is one of the most powerful creative skills. And once you see it at work in business, you'll see why. The "fool" knows how to invert problems, persevere when the going gets tough and isn't afraid to pursue absurd solutions.
Oprah Winfrey is arguably the most powerful business woman in the world. She built her empire with a "fool" strategy. When she began her talk show, other talk show hosts were featuring people's problems and making fun of each other.
Oprah turned the model upside down and started focusing on the strength of the human spirit. She created a book club, a magazine and programmes that featured the positive power of humanity.

The sage
Have you ever worked with someone who could take complicated information, synthesise it quickly and then come up with a great idea? That is the creative style of the "sage". A seemingly easy notion, but in practice, very challenging. The design greats of the Bauhaus knew this best with the motto, "less is more".
A perfect example of the "sage" at work would be the business genius of Michael Dell. Prior to Dell computers, you had to buy a computer at a retail store. A low-margin business, fraught with tangled problems, Dell simplified the route to market. His idea in effect went straight to the heart of the problem and revolutionised the way we buy computers.

Perhaps you have seen yourself in the thinking styles above. Our research has shown that highly creative people have the ability to use all five skills. Just like turning a sparkling diamond, the next generation manager will be able to turn a problem in the mind and come up with new solutions from at least five different angles.

Becoming a creative business person, not merely a manager, requires a relentless pursuit of innovation. It means you will prioritise ideas and place them at the centre of what you do everyday. It means you will not allow yourself to become distracted by day-to-day concerns and miss the larger reason you are working for - creatively bring value to the firm. It means you will bring your genius to work.

Each person has been granted the gift of creativity - t is our own personal genius. When we dedicate ourselves to using the full spectrum of our minds, we'll be surprised ourselves. Not only see our business grow, but we'll see our careers rise. And we will become the leaders the business world is looking for.

Deal with people. - How to.

By Suman Srivastava

Business school taught me how to read balance sheets, but didn't tell me how to motivate people to give their best. It taught me how to structure the organisation for maximum productivity, but not how to deal with a person who thinks her boss is a creep. My management degree taught me how to create an excellent marketing strategy, but not how to sell it to a client who is insecure about his job.

Business schools tend to be very left-brained. Very analytical, quantitative and structured. Which is a good thing because the Indian education system is not very good at teaching us to be analytical, quantitative or structured. The school system basically teaches us to learn by rote. The best business schools force you to unlearn that.

In the process, they tend to put the quantitative approach to a problem on a pedestal, ignoring the qualitative and "feel" aspects of managing people. If management is both a science and an art, then B-schools teach the science but ignore the art.

Life, unfortunately, is all about art. Success comes to those who learn to deal with people best. Those who learn to understand the fears and motivations that people have, understand their joys and sorrows. The role of a leader is to inspire, provide direction and keep people motivated. Other professional skills are taken for granted.

One can argue, perhaps with justification, that nobody can teach the art. That may be true, but where business schools tend to err is in leaving their management students with a feeling that the art doesn't really matter.

I had to wait until my hair turned grey before I understood that the art does matter.
But perhaps, I am just a slow learner.

Suman Srivastava graduated from Indian Institute of Management, Ahmedabad, in 1987

Mind Your ABC's. Get Rid of the D's

Mind Your ABC's. Get Rid of the D's.

Too many D’s and not enough A's: this is one thing in life that holds many of us back, without our even realizing it. It touches our everyday lives to an amazing degree. Let’s look at some examples in both our business and personal lives.

BUSINESS RELATIONSHIPS:The customer is not always right; the RIGHT customer is always right.

Not all customers are created equally. Some buy a lot from us, respect our opinions, and pay their bills on time. On the other hand, some just really drain us with small orders, constant complaining, and late payments. If you hang around these negative ones (they attach themselves to us), how are you ever going to have the time and energy to deal with the positive ones? I’m sure you can think of five to 10 customers who make your life a misery.

What if . . . ? Yes, what if they didn’t exist? Or, better still, what if they were dealing with your competitors and bringing them down? You would free up capacity that is being badly used and turn it into good capacity.

Replace those 10 baddies with one goodie and you are ahead of the game. First, get rid of the baddies. In case you haven’t figured it out, those are the D’s. Wouldn’t it be fun for you to double the number of baddies that your competitors deal with? It will drive them crazy, and they will lose some of their A customers to you. So, rank your customers A, B, C, & D. If getting rid of your D customers is difficult for you (maybe you don’t like to say no), then set stringent rules for them and insist they must follow them:

· Get their credit card number/ banking instruments before they buy.

· Develop a minimum size order.

· Insist they deal with you by fax or email.

You set the rules. If they don’t leave, they will become better customers. Your A customers are the best ones. So, treat them best. Next come your B’s and then your C’s. You need to set the parameters for A, B, C, and D. If you need help give me a call. Target your marketing activities toward A customers. Find out what delights them and make it part of your culture!

The questions you should ask yourself to help develop your strategies are:

· What can I do to convert my D customers to C, my C to B and my B to A?
· How can I get more A customers?
· What can I do to delight my A customers?

Now look at your suppliers and your employees, and follow the same pattern. You’ll improve the quality of your working life!

PERSONAL RELATIONSHIPS:Take control.

What about in your personal life? Are there people who drain you? Take more control and put limits on those relationships. Small changes here will make big differences in the quality of your life. Are you involved in too many volunteer activities? What are the unimportant things that are taking up your time? Freeing up even 15 minutes a day from marginal activities and spending it with your family will have a huge impact on your life. We are constantly reminded of how fragile life is. Don’t wait until it is too late. Sit with your family, share these thoughts and make a new family strategy now. Learn how to delight each other.

"What I do today is important because I am exchanging a day of my life for it."