Author Archives: 5-dimensionz

What is the ‘Peter Principle’?

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“In a hierarchy, every employee tends to rise to his level of incompetence.”

Laurence J. Peter – Canadian Educator and Author

What is the ‘Peter Principle’?

It is a concept in management developed by Laurence J. Peter, a Canadian educator who wrote a book in 1969 called The Peter Principle. His theory was that people in a hierarchy tend to rise to a level of incompetence. This was primarily due to their success in previous jobs however the skills in the previous job do not translate into the skills required in the new job. For example, a great engineer will be promoted from working as an engineer to management, where they do not possess management or leadership skills.

A variation of the Peter Principle is the Dilbert Principle. This is a satirical concept of management developed by Scott Adams the creator of the comic strip Dilbert. Here incompetent employees are intentionally promoted to prevent them from causing harm. In other words, getting them out of the way so they do not interfere with outcomes.

We have all worked for organisations where it would appear that both these ‘principles’ are at work!

Perhaps we are living proof of the Peter or Dilbert Principle?

I can certainly remember working for and with such managers. From the Managing Director’s son who got lost coming to work after living in the city for over 12 months to the Managing Director’s brother, who needed a phone call each morning to make sure he was at work. These were more probably cases of nepotism in combination with the Peter Principle.

A slight deviation from the Dilbert Principle is promoting ‘problem’ employees to get them out of the way. In an earlier career I worked for a manager who treated his staff appallingly and was not respected by them. Senior management knew this, so they removed the problem from the factory floor and promoted him! Another manager who I reported to, and was incompetent was offered a promotion and sent overseas to get him out of the way. He was later dismissed.

Managers will claim they always seek to hire people who are smarter than themselves. In many instances this does not happen, as this threatens their careers or dents their egos. Instead, they hire less capable people, so they are not threatened from below.

The Peter Principle can lead to disaster if an incompetent person is in a position of authority. The mismanagement of the COVID pandemic by public health officials in Victoria which resulted in hundreds of preventable deaths when the virus ‘escaped’ from hotel quarantine is one example. In an earlier blog senior management in a transport business caused the death of innocent people when a truck crashed into their car.

Can you think of examples of both the Peter Principle or the Dilbert Principle in your work life?

So how do organisations solve these problems?

I will cover this in a future management blog.

@thenetworkofconsultingprofessionals

80 years ago last month….

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“Unless commitment is made, there are only promises and hopes; but no plans.”

– Peter F. Drucker: Management Thinker

80 years ago last month, the largest sea borne invasion in history commenced. D-Day, June 6, 1944. It marked a pivotal moment in World War II when Allied forces launched Operation Overlord, aimed at liberating German-occupied Western Europe from Nazi tyranny. The operation launched from England crossed the English Channel onto the beaches of Normandy in northern France. It was a critical turning point in World War II.

Planning for D-Day was an immense undertaking that began as early as 1943. The operation involved extensive coordination between the United States, the United Kingdom, Canada, and other Allied nations. This planning included gathering intelligence, training troops, amassing supplies, and deceiving the Germans about the invasion’s location.

The scale of the D-Day invasion was unprecedented:

  • Troops: Over 156,000 Allied troops landed on the first day.
  • Military Equipment: This included 6,939 vessels: 1,213 naval combat ships, 4,126 landing ships and landing craft, and hundreds of auxiliary ships and merchant vessels.
  • Aircraft: About 11,590 aircraft were available, playing crucial roles in airborne assaults and providing air cover and support for the troops landing on the beaches.
  • Logistics: The operation involved detailed logistical planning to supply the massive number of troops, including food, ammunition, and medical supplies.

All this before computers! Many books have been written about D-Day. I cannot do justice to the sheer complexity of the undertaking, however I will try and provide a summary of the main lessons.

D-Day was a success. Within 12 months of the landing, Nazi Germany was defeated.

What factors contributed to the success of D-Day?

Here are three.

  1. Surprise and Deception: The Allies successfully deceived the Germans about the invasion’s location, leading them to believe it would occur at Pas de Calais. This deception, known as Operation Fortitude, was crucial in reducing German defences at Normandy.
  2. Air Superiority and Naval Support: The Allies had established air superiority, which was critical for both the initial landings and the subsequent campaign in Normandy. Naval bombardment also played a vital role in neutralising German defences.
  3. Allied Unity and Leadership: The operation exemplified the effectiveness of Allied unity and leadership. The coordination among nations and military branches was a key element in the operation’s success.

What are the three lessons from D-Day for Managers?

  1. The Importance of Planning and Preparation: D-Day demonstrated how meticulous planning and preparation can lead to success in complex operations. As managers we should value thorough preparation and the need to anticipate and mitigate potential challenges.
  2. Adaptability and Decision-Making: Despite the best planning, not everything went as expected on D-Day. The ability of commanders and soldiers to adapt to changing circumstances was crucial. In the business world, this highlights the importance of flexibility and decisive leadership in the face of unforeseen challenges.
  3. Teamwork and Collaboration: The success of D-Day was a result of unparalleled collaboration among the Allied nations. This underscores the importance of teamwork, joint effort, and effective communication in achieving common goals in any organisational context.

In conclusion, D-Day stands as a testament to strategic planning, international collaboration, and the resolve of the Allied forces. The lessons derived from this monumental event extend beyond military strategy, offering insights into leadership, teamwork, and the importance of planning, adaptability and resilience in the face of adversity. The successful execution of Operation Overlord not only marked a turning point in World War II but also serves as an enduring example of effective organisational and strategic planning.

@thenetworkofconsultingprofessionals



Sporting trivia from 75 years ago…

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DID YOU KNOW? Rhodesia (now Zimbabwe) beat the All Blacks 10-8 in Bulawayo on 27 July 1949, and drew 3-3 with them three days later?

Last year the Rugby World Cup was held in France, with the South African Springboks triumphing over the New Zealand All Blacks 12-11. The All Blacks are considered the pinnacle of national Rugby excellence but 75 years ago they were defeated by a provincial side in southern Africa. The provincial side remains undefeated against the All Blacks, the only team in history to do so.

The team represented Northern Rhodesia (now Zambia) and Southern Rhodesia (now Zimbabwe). The first match, played in Bulawayo in front of 10,000 people, resulted in a surprising defeat for the All Blacks 10-8. At the time the All Blacks were (and still are) one of the most formidable teams in international rugby. The significance of this defeat was made more poignant in the return match three days later with a 3-3 draw in Salisbury (now Harare). And for my New Zealand readers, 1949 remains the worst years in All Black history, with losses of 4-0 to the Springboks and 2-0 to the Wallabies.

What were the factors contributing to the defeat?

  1. Complacency of the All Blacks: The All Blacks, being a top team, might have underestimated Rhodesia, leading to complacency. The All Blacks were surprised by the dash of the Rhodesians, who played a different, open, and attacking brand of Rugby, as distinct from the safety-first South African teams.
  2. Local Conditions: The All Blacks were possibly not fully acclimatised to the local conditions in Rhodesia. Local knowledge and adaptation to specific environments can be crucial in determining the outcome of a contest.
  3. Psychological Advantage: The Rhodesian team, motivated by the opportunity to make history, may have had a psychological advantage. They had everything to gain and nothing to lose, which can be a powerful motivator.

The Rhodesian rugby team’s victory over the New Zealand All Blacks in 1949 is a noteworthy event in the annals of sports history, particularly rugby.

Here are three lessons for managers that go beyond the realm of sports, offering valuable insights for managers in various fields.

  1. Never Underestimate the Underdog: In business, as in sports, complacency can be a downfall. Always respect your competitors, regardless of their size or perceived strength.
  2. Adaptability: The ability to adapt to different environments and conditions is crucial. Managers must be flexible and responsive to changing situations, whether in market conditions, consumer preferences, or competitive landscapes.
  3. Motivation and Team Spirit: The Rhodesian team’s victory underscores the importance of motivation and team spirit. In management, fostering a strong team culture and keeping the team motivated, especially during challenges, can lead to significant achievements.

The Rhodesia vs. All Blacks games of 1949 serve as a timeless reminder of the unpredictable nature of sports and, by extension, the competitive world of business. They highlight the importance of preparation, respect for all competitors, adaptability, and leadership.

Note: Rhodesia RFU were treated as a province of South Africa for rugby reasons. Their players were eligible for selection by the South African team. Many were selected to play for the Springboks. Rhodesia never won another game against a touring side before being reconstituted as Zimbabwe in 1980.

@thenetworkofconsultingprofessionals

Gritty leadership from 75 years ago…

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“I am ready to try an airlift. I can’t guarantee it will work. I am sure that even at its best, people are going to be cold and people are going to be hungry. And if the people of Berlin won’t stand that, it will fail. And I don’t want to go into this unless I have your assurance that the people will be heavily in approval.”

Lucius D. Clay, June 1948

Military Governor of the United States Zone, Germany (1947 to 1949)

The Berlin Airlift. 75 years ago this month the Berlin Airlift ‘officially’ finished.

What was it?

After World War II, Germany was divided into four zones, Soviet Russia, Britain, France and the USA. Berlin was also divided into four zones but lay within the Soviet Russian zone. On 24 June 1948, Soviet forces blockaded all road, rail and water routes into Berlin’s Allied-controlled areas. This stifled the vital flow of food, coal and other supplies. More than 2 million Berliners were relying on the aid, which included much-needed food, fuel and medicine and would otherwise starve and freeze. Two thirds of what was needed was coal.

However, the Russians could not block the Allied airspace. On 24 June 1948. The Allies established an airbridge and began an airlift that lasted officially until 12 May 1949 when the Soviet Union lifted the blockade. The airlift continued until September after the lifting of the blockade as the Allies wanted to make sure that it was not reintroduced.

Why did it occur?

The blockade was an attempt by Soviet Russia to gain control over the entire city by cutting off all land and water routes to West Berlin, which was then under the control of the Western Allies.

Logistics of the Berlin Airlift

The success of the airlift depended on meticulous planning and execution. The planes were scheduled to land and take off at precise intervals, ensuring a continuous flow of supplies. This required exceptional coordination among pilots, ground crews, and logistics teams. To maximise efficiency, the cargo planes followed specific flight paths and adhered to strict timetables. This was all before the use of computers, GPS tracking and scheduling which we have today.

The airlift involved transporting a wide range of supplies, including food, coal, medicine, and machinery. Each type of cargo required different handling and storage conditions, which added complexity to the logistics operation.

Berlin Airlift – Facts & Figures

  • One aircraft landing per minute
  • Over 200 million miles flown
  • Each aircraft unloaded in 20-30 minutes
  • 2000 tonnes of food required per day
  • 400,000 tonnes of food, supplies and coal
  • Over 200,000 kms flown
  • 277,804 flights completed
  • 93 lives lost

The airlift cost the United States $350 million; the UK £17 million and Western Germany 150 million Deutschmarks.

What are three lessons for business leaders in the example of the Berlin Airlift?

  1. Innovative Problem-Solving: Leaders had to think creatively and act decisively to overcome the blockade. This required innovative strategies, such as the airlift, which had never been attempted on such a scale.
  2. Resilience and Determination: Leaders demonstrated resilience and determination in the face of adversity. The operation continued for over a year, and the leaders remained committed to their mission despite the challenges.
  3. Precision and Coordination: The operation demonstrated the critical role of precision and coordination in logistics. Timely delivery and efficient turnaround were essential for the success of the airlift.

In conclusion, the Berlin Airlift was not only a remarkable logistical achievement but also a powerful example of international cooperation, innovative problem-solving, and leadership under pressure. It provided invaluable lessons in both logistics management and leadership that are still relevant today.

What do you think?

Note: 39 British, 31 American and 13 German civilians lost their lives in the Berlin Airlift. They are remembered on the Berlin Airlift monument at Tempelhof. The pilots came from the USA, Britain and France and also from Australia, Canada, South Africa and New Zealand.

@thenetworkofconsultingprofessionals

Which European country first ‘discovered’ Australia?

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Below is a world map prepared in Dieppe, France showing a large land mass to the south of Indonesia, 50 years before Janzoon ‘discovered’ Australia in 1606

“History is a set of lies agreed upon” – Napoleon Bonaparte

Which European nation first discovered Australia? Was it the Dutch, Spanish or Portuguese?

Several books have been written about the ‘hidden’ discovery of Australia by the Spanish and Portuguese. However, there is no conclusive evidence that these two nations discovered Australia before the Dutch in 1606. Unsurprisingly the ‘evidence’ of the Portuguese being the first Europeans to visit Australia is extremely thin. The ‘evidence’ was ‘conveniently’ lost in the Great Lisbon Earthquake of 1755 and when India annexed the Portuguese colony of Goa in 1961. The Portuguese arrived in Timor in 16th Century and it is less than 250 nautical miles from the Australian continent so it is plausible that they ‘discovered’ northern Australia.  

However, the legend persists that the Portuguese were the first European visitors to Australia. One of the enduring legends is that of the Mahogany Ship, a wreck in the sand dunes in south-west Victoria, on the opposite side of the Australian continent to Timor, the nearest Portuguese colony. In the 1830s or 1840s a wreck was apparently sighted by some residents of the area. Even the position of the wreck was recorded. Mysteriously extensive searches using sophisticated technology and the offer of a $250,000 reward by the Victorian state government have failed to locate the wreck.

So, does the Mahogany Ship exist?

Highly unlikely!

Apparently, the original ‘discoverer’ of the wreck was not in Victoria at the time of ‘the discovery’, and he was a criminal with a history of dishonesty. In 1876 a Captain Mason wrote a letter claiming that he’d seen the wreck and that it could have been mahogany or cedar, and the mahogany story stuck. The suggestion of a mahogany ship fuelled the theory it could be Spanish or Portuguese, as it was a timber used by their shipbuilders for centuries.

Furthermore, a large majority of “eyewitness” accounts of the Mahogany Ship conveniently emerged after the wreck had been supposedly swallowed up by the sand dunes around 1880. A 1977 a book called “The Secret Discovery of Australia” further added fuel to the legend. Sealers inhabited the southwest area of Victoria during the period in which the wreck was ‘discovered’. The original ‘discoverer’ was a sealer whose boat capsized and as he walked back through the dunes with his companion they came upon the wreck. There probably was a wreck. If there was it was more than likely a sealers’ boat or possibly a boat stolen by escaped convicts in Tasmania. Timber allegedly from the wreck has been tested and identified as eucalyptus, not mahogany.

So, like many legends, the Mahogony Ship story has been built on half-truths, mistakes, exaggerations and lies and takes on the form of an ‘urban myth’. This has not stopped the local council in Warrnambool from erecting a Portuguese Explorer’s Memorial in a local park linking it to the legend of the Mahogony Ship! Never let the truth get in the way of a good story.

For more than 28 years the Portuguese speaking communities of Victoria have been coming to the city of Warrnambool to celebrate what they believe to be the discovery of Australia by Portuguese navigators. The Warrnambool Portuguese Cultural Festival is held every two years and celebrates the historical ties between Portugal and Australia, based on the legend of the mysterious Mahogany Ship.

“We are very happy to have the Portuguese community here every two years; we want the festival to get bigger and better. We also want to keep the Mahogany Ship buried in the dunes, we don’t want to dig it out and spoil the mystery, this is great for our city,” said Cr Robert Anderson, Mayor of Warrnambool.

Are there lessons here for managers in the legend of the Mahogany Ship?

  1. Don’t believe everything you are told by customers, staff or owners
  2. Go back to first principles to determine what are the facts – are they actually facts?
  3. There is nothing like telling a story to sell an idea even if it is not correct. The romantic idea of Australia’s first European visitors being Portuguese not British has certainly helped fuel the legend. The local council has profited through the story – it brought visitors to the area.

Note: the first recorded European visit was Dutchman Willem Janzoon in 1606 who landed on Cape York and chartered 300 km of coastline.

#thenetworkofconsultingprofessionals

Are you using your talents?

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“For it is as if a man, going on a journey, summoned his slaves and entrusted his property to them”.

Matthew 25

The Parable of the Talents

What is a parable?

The definition of a parable is a short but simple fictitious story that illustrates a moral attitude or a religious principle.

In Greece and Rome, parables were employed by rhetoricians, politicians and philosophers. In ancient Israel, parables were uttered by prophets and wise women and men. Many appear in the oldest books of the Old Testament. Parables were often used by Jewish rabbis of whom many were contemporaries of Jesus.

Jesus told parables to his disciples. Probably his most famous one was the Parable of the Good Samaritan, where a traveller is robbed and left by the side of the road. A Jewish priest and another Jew wander past and avoid the injured man. However, a Samaritan (who were despised by Jews) comes upon the traveller and assists him. Jesus’ parables usually teach us lessons. In the Parable of the Good Samaritan, the lesson in very broad terms is “show mercy to your fellow man”. This includes your enemies.

A parable told by Jesus that could be used for us as managers is the Parable of the Talents.

A wealthy man embarks on a trip and leaves three servants in charge of his money. Each is given a certain number of talents proportionate to their abilities. A talent in this case was a unit of money worth about 20 year’s wages. Two of the servants used the money wisely (and their business talents!) and returned a profit for their master and were rewarded. The third servant dug a hole in the ground and buried it, not earning any money and was penalised. One of the underlying messages here is that we are not all created with equal skills, abilities and opportunities.

What are the messages here for us as managers?

Here are three messages that come to mind.

  1. Value the opportunity. Each servant was given money to invest. Two of the servants took advantage of the opportunity and invested wisely, whereas one servant did not. He wasted the opportunity. Success only occurs when you take action. When you are offered an opportunity use your talents and take advantage of them, whether as a business owner, manager or employee.
  2. Reward those who do good work. The servants were rewarded on the basis of what they had achieved with what they had been given. Everybody has abilities (“talents” in the literal sense) and we should use what we have been given. There is no one that has no talents. As managers we need to recognise those who use their talents and reward them appropriately.
  3. Know who to trust. We live in a diverse world and we are different in many ways. The master realised this and gave talents (money) to each man “according to his own ability”. As managers we need to recognise different levels of skills and abilities of our employees and more importantly treat people humanly and with dignity. Clearly not everyone is created equal and we should recognise this a managers act appropriately.

Can you think of any other lessons in the Parable of the Talents?

Note: This blog is not meant to be a theological interpretation of the Biblical parables.

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Lions roaming Australia…

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“Any fact is better established by two or three good testimonies than a thousand arguments”.

Nathanial Emmons – influential American theologian

Before the opening of open range zoos in Australia, there was an African Lion Park located on the edge of suburban Sydney. It was owned and managed by the famous Bullen circus family. Families could drive through the park and get close to lions. As a kid I can remember visiting and reading the signs warning you that if you got out of your car you could be eaten!

How exciting a visit was for young children! As a visitor you had the chance to see lions rubbing up against your car and even licking the windows!

Interestingly, the park also provided a disposal service for the local community for their unwanted livestock. Classified advertisements ran in the local newspapers for the removal of sick or injured sheep, cows and horses. The park closed in 1991 but the lions remained!!!

Now, Australia is renowned for its dangerous creatures from the sharks, spiders, jelly fish, snakes to crocodiles. In 1995, the inhabitants in the townships of Warragamba and Silverdale close to the lion park were reportedly ‘terrorised’ by lions. In Australia, surely this was an urban myth!

Well, facts can be stranger than fiction.

So, what happened and was it true or just an urban myth?

Yes, three lions escaped. The local police received a call from a startled motorist who saw a lion cross the road and they had to attend to a “lion wandering the streets”. Two of the lions were recaptured and returned to the park. However, one lion continued to wander the streets and after killing a dog was shot and killed by the park’s owner in a suburban street.

How did the lions escape?

Even though the park was closed, lions could still be heard roaring and been seen being fed from the boundary fence. Living next to a defunct lion park were two 12-year-old boys. Now boys will be boys. One day on the park’s boundary fence, they kicked in a rusted grate on a stormwater culvert and wandered in. They did some exploring, fished for yabbies and then headed back home back through the culvert and broken grate. The thought of lions escaping was apparently furthest from their minds, and alas that occurred.  

So, this was not an urban myth!

Is there a lesson about urban myths here for us as managers?

Years ago, a colleague related the story of a business owner who re-employed a person to run the business who had sacked the week before for non-performance. Sometimes facts can be stranger than fiction even if they sound like an urban myth or an episode of Utopia the ABC TV series that parodies how bureaucracies work. A great example is the Harold Holt Memorial Pool in Melbourne. The local Council named the pool after Prime Minister Harold Holt, who drowned while swimming in the surf near Melbourne and whose body has never been found!

When it comes to your own corporate myths, I am not suggesting that you make up stories. Instead, make an effort to find and share them. These stories can be a vehicle to connect and engage with current employees and customers. Without the ongoing sharing of the story, the actual event will be lost or forgotten, and companies will start to lose their corporate memory.

For example, in 1998 there was the shopping trolley story involving Roger Corbett, the then CEO of Woolworths Australia a supermarket company. Apparently, he came across an empty Woolies trolley and then pushed it all the way from Sydney’s Circular Quay near the Opera House to the Town Hall supermarket. At the time, Corbett was creating a culture of attention to detail and cost reduction. Although he retired in 2006, the story is still shared today. It has become an urban myth in the company.

Another business urban myth is the story set in 1960s about Sir Frank Packer, millionaire media owner and father of media baron Kerry Packer. The story goes that Sir Frank, a pugnacious, autocratic and often difficult businessman found himself in an elevator of his Sydney office building with a shabbily dressed man, and was outraged. Packer tells the man he’s a disgrace to his firm, fires him, and hands him $1,000 to buy a new suit. The ‘fired’ man just grins — he was a freelance photographer who stopped by to visit a friend who worked in the building. The story apparently circulated when Sir Frank believed his employees were not meeting his dress standards.

Does your organisation have stories that could be used to enhance and build a positive and constructive culture?

It could be worth exploring.

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Sometimes being a rocket scientist doesn’t help…

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“Reach for it, you know. Go push yourself as far as you can”

Christa McAuliffe – astronaut on the doomed Challenger

38 years ago this month on 28 January 1986, on a cold morning watched by thousands of onlookers and millions live on TV, the Space Shuttle Challenger lifted off from Kennedy Space Centre in Florida at 11:38 AM EST. To everybody’s horror just 73 seconds into its flight the shuttle broke apart, leading to the tragic death of all seven crew members. This event is etched in our collective memory, not only for its heartbreaking impact but also for the profound lessons it imparts to managers, business owners, and leaders across various fields.

What caused this disaster?

The primary cause of the Challenger disaster was the failure of the O-ring seals in its right solid rocket booster (SRB). These O-rings were not designed to handle the unusually cold conditions on the day of the launch. The low temperatures compromised the O-rings’ elasticity, preventing a proper seal. This failure allowed pressurized burning gas from within the solid rocket motor to reach the outside and impinge upon the adjacent SRB aft field joint attachment hardware and external fuel tank, leading to the structural failure of the SRB attachment and the destruction of the Challenger.

Engineers at Morton Thiokol, the contractor responsible for the solid rocket boosters, had raised concerns about the O-rings in cold weather. However, these concerns were not adequately communicated to or heeded by the key decision-makers at NASA. The organisational culture at NASA, which at the time prioritised schedule and budget over safety, played a significant role in the decision to proceed with the launch, despite these known risks.

Furthermore, this design flaw was compounded by a failure in communication and decision-making processes within NASA and between NASA and its contractors.

What lessons can we as managers learn from this disaster?

Here are three lessons:

  1. Importance of a Safety Culture: The Challenger disaster underscores the critical need for organisations to prioritise safety over other objectives, including schedule pressures or financial concerns. Creating a culture where safety is paramount can prevent catastrophic outcomes.
  2. Effective Communication and Heed Expert Opinion: Effective communication and respecting the expertise of team members is vital. The concerns of the engineers about the O-rings were a missed opportunity that highlight the importance of listening to and acting on expert advice, especially when it pertains to potential risks.
  3. Ethical Decision Making: The Challenger incident serves as a stark reminder of the ethical responsibilities of decision-makers. Ethical decision-making involves considering the wider implications of actions and prioritising the well-being of all stakeholders, including employees and the public.

In conclusion, the Challenger disaster, serves as a sombre reminder of the consequences of overlooking safety, underestimating risks, and the critical importance of ethical leadership. For managers and business owners, it is a call to reflect on their practices, to ensure that the lessons from this event are not just remembered, but integrated into how they lead and make decisions.

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Would you pass the Tombstone Test?

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“They say such nice things about people at funerals that it makes me sad I am going to miss mine by just a few days.” – Anon

Last year I posted a blog called Where is Werris Creek? Having grown up near this town in country NSW I decided to post a link to the blog on the town’s Facebook page. I introduced it by saying that my mother taught there as a Primary School teacher over 40 years ago.

The responses were unexpected. Several former students responded saying they remembered my mother very well and that she had a very positive effect on their lives. A positive legacy after over 40 years. My mother was a very dedicated and hardworking teacher. I can remember her preparing lessons at night. Even into her late 80s she assisted at the local primary school which had a high proportion of migrant children and taught them about Australian history and culture.

This reminded me of a technique used by consultants called the Tombstone Test.

So, what is the Tombstone Test?

No, it’s not the 1881 shootout at the OK Corral in Tombstone, Arizona where Wyatt Earp and his brothers along with Doc Holliday gunned down three “Cowboys”. The “Cowboys” were two families of outlaw cattle rustlers, tobacco and alcohol smugglers.

The concept of the Tombstone Test probably originated from management theories of the 1990s centred around business leadership. In short, it consists of two questions:

  1. What do you want your obituary to say?
  2. Is what you are doing today consistent with the legacy you want to leave?

This can be extended to your relationships with family and friends. Do you want to be remembered for the money you made in your lifetime, or whether you were a good parent, partner, spouse or friend?

The Tombstone Test is sometimes used by management consultants to focus the mind on your legacy.

Being a good business owner or executive, if done well should be about freedom, fun, fulfillment and making money. By extension it should also be about serving and helping others, especially your customers and employees. In our former logistics business, we developed supervisors, paid for their training and when we sold the business, put aside a significant amount of money for the long-term employees and paid them bonuses.

As a manager or business owner how would you like to be remembered?

The greedy, arrogant, unapproachable and selfish individual, or like my mother, remembered in a positive light as someone who made a difference to others’ lives years after the event?

The Tombstone Test is meant to make you confront reality, have a deeper perspective on how you live your life both at work, in the community and at home and be remembered as a making a positive difference in the world.

As we approach Christmas and the end of the calendar year it is a good time to reflect on the past 12 months and think about the future. The Tombstone Test is a good starting point.

Seasons Greetings to all my blog readers and all the best for 2024

#thenetworkofconsultingprofessionals

A great business model or trashing your brand?

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(c) The Sydney Morning Herald (Sept 2023)- illustration by Matt Golding

Several years ago in my management blog, I described Elvis Business Model (EBM) as an ‘ideal business’ model. In 1977, the year Elvis Presley tragically died he had less than $US1 million in the bank, but by 2016 his estate had earned more than $US27 million.

The recent corporate history of Qantas ‘the spirit of Australia’ has now provided what may be a better business model. Let’s call it FKBM – the flying kangaroo business model.

In August 2023 Qantas announced a record pre-tax annual profit of nearly AU$2.5 billion up from a loss of almost AU$2 billion the previous year. Following the pandemic years, many travellers were prepared to tolerate, perhaps even forgive their poor customer service, long call centre delays, lost luggage and cancelled or delayed flights. But two years on, trust and esteem for the airline is running at an all-time low.

Now at the time of writing, the Australian Competition & Consumer Commission (ACCC) is taking the action against Qantas for engaging in false, misleading or deceptive conduct by advertising and selling tickets for flights that it had already cancelled sometimes months ahead. This often led to customers having less time to make alternative arrangements and paying higher prices for new flights. These credits exceeded $570 million! Tickets are now averaging 60% above pre-COVID prices. Coupled with this, an international rival of Qantas, Qatar Airlines recognised for its high level of customer satisfaction was refused additional flights into Australia by the current Australian Government. Competition was reduced providing the opportunity to increase prices.

What an excellent business model!

Collecting money for already cancelled flights, thereby having access to this cash certainly helped finance the business, then make it difficult to redeem the credits (this was partially reversed) and later having the government of the day restrict international competition, thus allowing you to charge higher prices.

So, how far has Qantas fallen in Skytrax Best Airline survey?

As Qatar has a significantly better ranking than Qantas, having the government refuse to increase their landing rights is certainly ‘beneficial’.

So, is FKBM the way forward?

Well, no, not really.

Firstly, Qantas has alienated its customers. Judging by the high number of customer complaints this is certainly the case. Many have said they will never fly with them again. The brand has been trashed.

However, it goes further than this.

Qantas has had a difficult relationship with its employees, from shutting down the airline in 2011 in a dispute with staff to sacking thousands of employees during the pandemic and outsourcing maintenance which saved the airline over $100m per year. The High Court of Australia ruled last month that Qantas had unlawfully outsourced the jobs of sacked workers. Whilst not all of this is Qantas’ fault, its restrictive trade union work practices which inflated costs did not help. Businesses cannot reliably add value when the relationship between management and other employees is broken. If a company’s employees have little or no faith in their brand, how are customers be expected to?

Employee disfunction morphs into broken promises to customers, suppliers and other stakeholders further depleting goodwill. Although not all stakeholders are adversely affected – Qantas shareholders and senior management have certainly benefited from good dividends and bonuses. However, if you are a customer, a worker, or you live in a regional area or are a taxpayer you might not agree. It is not helped when the public see the CEO walk away with millions of dollars in bonuses.

Trust is a highly emotive, particularly when viewed through a brand lens. A brand is a belief and values system which acts as the bedrock for guiding management on how to re-engage with its many stakeholders whether they be an employee, shareholder or customer. Businesses cannot be successful without customers. When it comes to convincing customers to believe what you are saying, there is no one size fits all approach.  A good start would be to engage and have faith in your employees. It flows on from there.

Do you think the FKBM is a good long-term strategy?

If not, why not?

How important is employee engagement in ensuring good customer service?

Is excellent customer service vital for long term business success?

Note: On an international flight over 4 months ago, Qantas mislaid my luggage and I had to purchase clothing to continue my travels. Qantas ‘offered’ to pay compensation and I completed the requested form. Despite over 10 emails (Qantas ‘customer service’ claims not to have received my emails), and several phone calls including a promise to return my call within 5 working days which has not been returned, the compensation has not been forthcoming. I am one of many who have experienced Qantas’ poor service levels firsthand. Have you?