Category Archives: Effective Leadership

Never, never, never give in

Posted on by

“Never give in. Never give in. Never, never, never, never—in nothing, great or small, large or petty – never give in, except to convictions of honour and good sense”

Winston Churchill

Winston Churchill was known for his inspiring speeches. Unlike most politicians today, he wrote many of his speeches himself. In business, as leaders and managers we could do far worse than be inspired by some of Churchill’s famous speeches.

Never giving in? Often in the face of adversity it is easier not to make the extra effort to achieve the outcome required. As I reflect on my journey of establishing and managing a business, Churchill’s ‘never give in’ speech resonates.

Back when the business was just starting out, we were given a 3 month contract with a major Australian retailer to manage their Christmas overflow. This effectively doubled our existing business and would have prevented the business from failing. After we had signed the contract we then received a phone call saying ‘sorry, we’ve decided not to use you’.

Large Australian retailers are notoriously ruthless in dealing with suppliers, especially small ones. Although we had a contract we were in no financial position to seek redress for them breaking the contract. If we had taken legal action we would have been out of business before the matter was addressed and, we could not afford it anyway. With our backs to the wall, we went back and negotiated successfully with the retailer’s manager and convinced him that the honourable action was to adhere to the contract. This gave us our first big start in the business.

Several years later, our largest customer owed us a six figure sum and was reluctant to pay. Failure to pay would have meant our business would have collapsed unless we were able to secure a bank loan to cover working capital. This was something we were reluctant to do as our houses had been mortgaged to establish the business. Negotiations were not fruitful in reducing the debt owed to us and we became extremely worried. We kept the pressure up without success. Luckily the customer decided to cease using our services but they needed to move their stock. This presented the lever we needed to get paid. Put simply, “no payment no stock” and our business was saved (post note: 12 months later the customer went broke). Never, never give in had saved our business on a number of occasions.

Finally, successfully selling our business was our last example of ‘never, never, never give in’. After 2 failed sales attempts in 12 months it looked as though the business would never be sold and we would not receive a reward for our 15 years of hard work (and worry!). Seven prospective business brokers were interviewed to assist in selling the business and were rejected for one reason or another. It looked like another failure. However, I encouraged one of the brokers to try another approach. After weeks of trying to convince all my partners to use his company’s services, he was appointed to sell the business. This proved a decisive. The broker had international experience and was able to sell the business to an international buyer well above expectations.

I recently read a great blog about not giving in where the author states “Anything worthwhile is worthwhile sticking with until it is done” this applies to not only business but life itself.

In business as in management, staying power or persistence will often win out in the end………sometimes when you least expect it.

Priorities…

Posted on by

Priorities…

“Having my priorities in order has really helped me look better, fresher and more relaxed”
Kim Cattrall

Maybe a quote from a TV star (Sex and the City) is not what you would expect to head a blog about priorities in work and business. However, it does highlight the fact that if you have your priorities in order, you can achieve great things and not be side-tracked by unimportant issues.

Let me give you an example. A friend of my daughters popped in recently for a quick catch up. I asked casually how things were going in first 12 months of her job. She started to complain that the new managing director (and this was a multinational company) had decreed that only white coffee cups were to be used and she wanted to use her Lord of the Rings coffee cup. Other people were complaining as well.

These types of decrees are not uncommon as shown by the linked article about the former managing director of BHP Billiton, the world’s largest mining company. He put out an edict about desk ‘etiquette’ that bordered on the neurotic, at a time when the company had both great opportunities and of course many problems. He subsequently left the company with very little to show for his tenure at the helm, in particular the missed opportunities.

Micro management is normally a red light that may indicate that management does not know how to prioritise; treats staff as unimportant, and is not up to the “real” job. I once worked for a manager who was obsessed with orderliness, where all prospective customers were placed in labelled manila folders and filed (and that’s where they stayed!) whilst he complained that I should not keep active files on the floor near my desk as it made my office untidy. Perhaps it did make my office untidy, it certainly did not stop my success in achieving sales. I can remember another good example from years ago. I was studying whilst working full time and thought it would be a good idea to give my then manager a draft of one of my one of my assignments (which was about the industry we work working in). He proceeded to mark the spelling and grammar (this was before Spellcheck)

…………..little wonder he was dismissed some years later.

So what would be your advice to my daughter’s friend?

Be defiant and show independence and continue to use her Lord of the Rings cup?

It’s all about priorities.

Is it important?

………possibly demotivating, irritating and annoying ‘yes’ but important ‘no’?

We asked her:

“Is this important to you doing your job to the best of your ability?”

“No”

“Then it’s not a high priority is it?”

As the link to blog below, the expression “when a dog is in the hunt, it has no time to search for fleas” has relevance.

Remember it is up to you get your priorities right………………..

If you do, life and work is far less complicated and you are more likely to be much happier and more successful.

Above the Line and Below the Line Thinking…

Posted on by

Above the Line and Below the Line Thinking…

“We can complain because rose bushes have thorns, or rejoice because thorn bushes have roses.”
― Abraham Lincoln

Continuing on from a previous blog highlighting the difference between excuses and reasons and making sure you are not the road block, we have the concept of above and below the line thinking.

This is a very powerful concept – “The Line” is the parallel that divides our character and represents responsibility. Responsibility is a very important word. It is a powerful life skill that puts into practice the act of ownership; taking responsibility and being accountable for your actions.

Acting below the line our lives become circumstance-driven and include the characteristics of laying blame; denial and making excuses.

Are you a victor or victim?

Laying blame is far too common in organisations and businesses; whether it is the CEO or others. It shows that they are not willing to be accountable or responsible for their actions. Excuses don’t solve the issues either, nor promote responsibility. They usually cause frustration.

With denial we are committing yet another below the line action “I didn’t do it.” This obviously ineffective response can create certain frustration in others and make us appear unreliable and dishonest.

Yes, victims let things happen to them; do not take control; are pessimistic; find reasons why not and always appear tired and stressed.

By choosing to act above the line  we are using response-ability (that is taking responsibility for your performance and showing you have the ability to be responsible). It is a powerful skill. This can be defined as having the ability to respond (that is be pro-active). With response-ability comes increasing choices and freedoms that we may have never had before.

By living above the line, you take responsibility for your own life, business or career. You begin to have greater control because you stop blaming things outside yourself for your current situation. I can remember being in a business where a manager always came up with excuses about poor business performance whilst continuing to deny there was a problem. This was extremely frustrating for me. It began to affect my work performance and emotional state. I was blaming him rather than taking ownership for my performance. I decided to take responsibility for my performance and the business performance and this filtered down the organisation to others, making them take responsibility for their sections……..and unsurprising performance improved and so did workplace morale.

Responsibility is the ability to respond to the events that happen in our lives. When you sit back and accept things that happen to you, you are allowing the circumstances of life to control you rather than taking control of what circumstances come in and out of your life. When you take action, you make life happen for you…………not to you!

The Effect of Disruptive Employees in the Workplace

Posted on by

The Effect of Disruptive Employees in the Workplace

“If you accept the expectations of others, especially negative ones, then you never will change the outcome”

Michael Jordan

Have you ever worked with or for a person who is disruptive? Was it is always about them and not about the team?

Workplaces are strange social environments. We are thrown together with those who we would not normally choose to spend time with. Having said that, it is our responsibility to work as hard as we can to make our relationships at work productive and perform our jobs to the best of our ability, to help ensure the organisation and the careers of those within the organisation are successful.

Disruptive employees display the following characteristics at work:
• They constantly see the negative points of issues (the glass is half empty)
• They try to get others onto ‘their side’
• They turn minor inconveniences into major ones, often in loud voices and with great drama
• They come up with complicated explanations for the most simple occurrences
• They never meet deadlines
• They bore people with their social lives often to the extent of what they had for dinner
• Are often way sick more than other employees

We as managers are often paralysed by indecision when confronted with disruptive employees who disrupt the work environment and the performance of the team or business. Why is this?

Probably because we prefer to make life easier for ourselves by not confronting the problem. Are we really making it easier for ourselves? I doubt that there is any manager in the world who can honestly say that they have not deferred confronting the problem. I have certainly been guilty of this.

Can you remember when a disruptive employee left an organisation? Everybody in the team seemed to breathe a sigh of relief and become more productive again.

I can remember working with a disruptive employee who was always sick, everything was a drama, was negative and dismissive of new ideas, disrupted fellow work mates who were too polite to tell her to ‘go away’, boring them with her love life and what she cooked for dinner each evening. When she left there was an enormous positive change in the work environment.

So what can we learn from this?

Teams look for leadership. As the manager you have the authority to act in ways that benefit the team.

I can remember an incident where a state manager was harassing and threatening staff whilst telling the managing director each afternoon what a great job he was doing. The financial results did not show this. His subordinates were demoralised and were seeking support. A window of opportunity presented itself, we had proof that company policy had been seriously violated and with the managing director out of the country we sacked the manager. The relief from his direct supports was immediate, they stopped looking for work outside the company and their morale improved overnight. Furthermore, one of the staff who was being bullied became one of the company’s best managers with the most profitable branch! True leadership improves a company’s performance.

Disruptive employees cost money, either directly or indirectly. It’s your duty as a manager to manage and not abdicate this essential activity. Your team are watching you. Either manage them and have a plan to ensure acceptable behaviour, or manage them out of the business.

You owe it to your staff and customers.

What are you going to do when a disruptive employee affects the performance of your organisation?

Recognising Poorly Managed Organisations

Posted on by

“Unfortunately it’s also true to say that good management is a bit like oxygen – it’s invisible and you don’t notice its presence until it’s gone, and then you’re sorry.”
― Charles Stross

Have you ever walked into a business and realised it was poorly managed before you even met the management team?

Years of experience has sharpened my ‘antenna’ to organisations with poor management. The symptoms are apparent even when you first come in contact with the business or organisation.

Think about the last time you visited an organisation – what were your first impressions? They are generally a guide to the rest of the organisation. I can remember a recent visit to a business. My first impressions proved to be correct.

The reception was untidy and dirty, no visitors book, no induction procedure, no chair to sit while waiting for the owner, no coffee, tea or water was offered at the meeting, the meeting room where customers would obviously meet had broken chairs with paper and cardboard boxes on the board table. When I politely requested a cup of coffee there were no clean coffee mugs or milk.

Was this initial experience an indication of how the business was managed? Yes of course it was!

The staff were surly and demotivated, and initiative was discouraged. The owner treated them poorly which were exacerbated by his erratic behaviour. The business went into administration within 4 months of my visit.

By comparison, another business I visited was the opposite. Although the office area was ‘dated’ it was neat and tidy, a drink was offered and there were pictures on the wall showing what the company did together with certificates of appreciation from charities and the company’s values were prominently displayed. I subsequently found out that this company was growing profitably at 20% per annum and had been doing so for the past 3 years.

Another indicator is telephone manner – if the phone is not answered promptly, if the person does not state the company, introduce themselves and have a helpful and pleasant manner then it is probably a symptom of poor management. Telephones are the face of the business and often the first interaction with customers.

As an extension of this theory, we often don’t notice good managers or good customers until they have left. They are often ‘invisible’ and do their job without ‘noise’. In one of my earlier blogs Beware of the Operations Hero explains this concept as well.

Like a well serviced and driven motor vehicle that performs well and does not breakdown, good management is the same.

Good managers recognise this in their staff, customers and suppliers……….do you?

Leadership v Management

Posted on by

Leadership v Management

“Management is doing things right; leadership is doing the right things.”

Peter Drucker

Management is the act of exerting influence on individuals, therefore wielding control over a business or organisation. Good management achieves this in such a way that a positive outcome is achieved. Bad management is the opposite!

Competent managers organise, summarise, administer and communicate with other people, departments and organisations. However, management is not a substitute for leadership. People cannot be managed into responsibility or competence, however they can be lead there. A competent leader may also be a good manager, but a good manager may lack the inspirational or creative traits to be a ‘real leader’.

Leadership is ‘the ability to influence the opinions, attitudes and behaviour of others’. Note the difference between control (management) and influence (leadership). An effective manager normally displays leadership qualities. Think of Winston Churchill as the Prime Minister of Great Britain during World War II. He worked in the War Rooms beneath Whitehall with the War Cabinet (management-control) whilst the bombs rained down on London. He also provided inspiration and leadership (leadership – influence) to the British people through his speeches and walking and talking to Londoners during the ‘Blitz providing hope and vision for overcoming the Nazi threat. He was both an effective manager and leader.

Here are some of the characteristics of managers and leaders :

Managers

Leaders
Rely on control of the situation Inspire trust in their followers
Have a short range view Have long range perspectives
Generally accept the status quo Usually challenge the status quo
Administers and maintains the organisation Motivate and develop the organisation

Having compared the two, most managers develop leadership qualities over time, given circumstances, training, support and ability.

There are 6 main characteristics of being an effective leader:

  1. Having – clear sense of direction (vision and goal setting)
  2. Communicating – the vision to others
  3. Being – innovative and searching for opportunities (taking risks)
  4. Empowering – by building and encouraging strong teams
  5. Leading – by example, having clear views and being consistent (moral authority)
  6. Knowing – your own and followers strength and weaknesses

As leaders, whether at the local sports club, charity, department, organisation or business we need to develop our leadership skills and understand the main characteristics of being an effective leader?

How can you become a more effective as a leader?

Life Cycle

Posted on by

Life Cycle

“All product categories have a specific life span called the product life cycle. Brands or products typically go through five stages of growth: development, introduction, growth, maturity and decline”

Yes, we all know about a product life cycles, just look at what car manufacturers do by redesigning car styles. Business leaders and business owners have a life cycle too! The issue is to know where you are in your career or business life cycle and to then plan and act accordingly.

CEOs of family businesses often have great difficulty in “letting go”. The issue is often an emotional one. Many business owners have invested so much time and money working long hours that they see stepping down as being “put out to pasture”. Ego, loss of self-worth, so called RDS (relevance deprivation syndrome – which retiring politicians claim they suffer from!) and perceived lifestyle all play a part.

Great leaders know when it’s time to pass the baton. We saw how John Howard, the former Prime Minister refused to hand over the leadership to Peter Costello. The result was a lost election in 2007, Costello leaving politics, Howard losing his seat (only the second prime minister to do so) and the Liberal party having 3 leaders in 3 years.

All businesses must have a succession plan. There are two types of succession plans; short term or emergency succession plans (the “what happens if you are hit by a bus?” scenario) and long term succession plans which protect your company’s culture, value and future. If you are a family owned business you owe it to your family, employees and customers to have a well planned and executed succession plan.

There is no greater satisfaction than mentoring and training a replacement successfully. If you do not plan for your succession then you have failed as a leader and have failed your business.

So know where you are in your career and business life cycle and start succession planning. It is not a sign of weakness but of strength and you will be recognised for it. I have seen too many companies suffer because there was not a well planned and executed succession plan.

Start planning now…