Does your organisation suffer from Komodo Dragon Syndrome?

“Dragons are creatures of legend, but in a world as fantastic as Indonesia, myths become reality. On a small, 22 mile long island among the thousands of Indonesian isles lives the planet’s only living dragon -the Komodo (Varanus komodoensis)”

Extract from Wild Indonesia

In 1910, in eastern Indonesia on the island of Flores a Dutch colonial administrator, Lieutenant J.K.T. van Steyn van Hensbroek received word of a “land crocodile” living on the nearby island of Komodo. Intrigued, he decided to visit Komodo to investigate. He returned with a photo and a skin. The reptile was not a crocodile, but a large monitor lizard. In 1912, it was recognised as new to science and the first formal description of the lizard was published. It became known as the Komodo Dragon, the world’s largest living lizard.

So, what is Komodo Dragon Syndrome?

Komodo dragons are endemic to eastern Indonesia. They are found only on the northern coast of Flores and on three nearby islands including the island of Komodo. The Komodo Dragon can grow to over 3 metres in length and weigh up to 130 kgs. They are territorial, can run at up to 20 kph, are carnivores and have very sensitive forked tongues that sense prey and food, such as rotting flesh kilometres away. With a powerful tail, large claws and serrated teeth they have a fearsome reputation. Their bite is toxic due to the bacteria in their salvia and glands in their mouth produce a venom that prevents blood clotting and leads to unconsciousness.  Known to occasionally eat humans, they predominantly eat deer and pigs, which they ambush and bite, and wait then for them to succumb to their toxic bite.

No, it’s not about a fierce venomous predatory reptile.

The Dutch had been in Indonesia as a colonial power since the early 17th Century with the establishment of the Dutch East India (VOC) Company in 1602. The VOC was one of the world’s first multi-national companies. By 1800 however, due to mismanagement, corruption and fierce competition from the English East India Company, the VOC was bankrupt and was nationalised by the Dutch state.

The Dutch had been in Indonesia for over 300 years and had not found the Komodo Dragon, the world’s largest and most dangerous lizard. Even Lt van Steyn van Hensbroek, the ‘discoverer’ of the Komodo Dragon who was living on the island of Flores where it also lived, went to the island of Komodo to find it.

This defies explanation.

How could such an animal remain ‘undiscovered’ for so long?

This is what I call Komodo Dragon Syndrome, where the management can be so inward looking that something so obvious can be missed.

Perhaps the Dutch colonial administrators were ostrich managers or were so blinded by their colonial superiority and preconceived ideas that they failed to see what was virtually right under their noses.

The message is, to avoid suffering from Komodo Dragon Syndrome, we as managers need to ask questions, be inquisitive and manage by walking around.

Are you being complacent?

Too comfortable in your position, inward looking and missing the obvious?

Perhaps you have Komodo Dragon Syndrome.

#thenetworkofconsultingprofessionals

Business plan – why the journey is more important than the destination?

‘A goal without a plan is just a wish.

Antoine de Saint-Exupéry – French writer and pioneering aviator

What is a business plan?

It is a formal statement of future business goals and a plan for reaching those goals.

In their 2017/18 SME Research Report, Australian financial and business advisory  HLB Mann Judd found a staggering four in five businesses do not have a working business plan. Of those with a business plan, only one in three regularly spends time refining their plan. Similar results were found in the UK  in 2015 in a survey by Barclays Bank. Only 47% of all UK small- to medium-sized enterprises (SMEs) had a formal written business plan.

Should this be of concern?

Yes.

Failing to plan increases the likelihood of failure, whether in business or at a personal or professional level.

What should be in a business plan?

A business plan should commence with a vision, mission and values statement. It should set goals, realistic objectives and attainable targets. These targets should also be stretch targets to challenge management  and include strategies as well as a plan of action.  A business plan is not static. It must be a dynamic living document, providing a mechanism to resolve problems and maintain profitable growth.

What are the benefits of having a dynamic business plan?

Change is inevitable. A dynamic business plan can provide a framework to manage internal change and to  meet the challenges and opportunities of external change. The process of developing a business plan commences with a Strengths Weaknesses Opportunities Threats analysis (SWOT). The SWOT, if performed well, will identify the opportunities and threats to the business and its strengths and weaknesses. My clients tell me the best SWOT sessions should be conducted by an external professional facilitator, who does not necessarily have an intricate knowledge of the business or industry. They are less likely to have internal business agendas or conscious or unconscious biases. The best SWOTs are derived from a well-facilitated process.

How can a business plan fit into the annual running of the business?

In writing a business plan, some of the greatest value is derived from the time spent thinking about the business – understanding its background and the external and internal aspects of the business and industry. A SWOT is a good example of this process.

The next step is to write a business plan. There are many different models and templates that can be used to write a business plan, and the choice of model  is a matter of personal and professional choice. In my experience, the best plans result from a team effort – which includes input from key managers and provides greater scope for involvement and commitment. Even as the business owner or CEO, you may not be  the smartest person in the room.

The ongoing  value of a dynamic business plan is in monitoring the plan. I use the model below  which breaks down the plan into 90-day projects, 1-year goals and a 3-year  vision. This is aligned with the annual budget.

 Dynamic Business Plan

The business plan is presented in manageable and achievable bites, like eating an elephant. At monthly management meetings, 90-day projects are monitored to check progress towards the overall vision. Small projects build towards the 1-year goals, which in turn form part of the 3-year vision. The power of this approach is that those involved can measure the progress against the plan and are therefore more committed. At the same time, financial performance is checked against the annual budget. If circumstances change, priorities can be easily adjusted. With our logistics business, our goal was to be recognised as the pre-eminent provider of floor-ready merchandise services for suppliers to major retailers. When the retailers established distribution centres in Asia, we were forced to change our strategy to providing full warehousing services to SMEs.

Remember: business planning – like life – is a journey, not a project.

Do you have a business plan for one year or three years?

 

Do you a have business risk management plan?

16. Example of Risk Matrix V4

‘The kinds of errors that cause plane crashes are invariably errors of teamwork and communication.

 Malcolm Gladwell – Canadian author and journalist

Being in business is a risk, and it is a challenge for businesses to manage that risk. Risk varies from business to business, from industry to industry and from country to country. Every business will have inherent risks. A business that handles cash, for example, is more susceptible to theft than a quarrying business with stockpiles of raw materials.

What is business risk?

It is an event or situation that has a negative effect on your business. This can range from additional costs caused by the risk to situations that threaten the business itself. Risks can never be completely eliminated. However, they can be managed and controlled.

There are two broad types of risk:

  • internal risks that are primarily related to what happens inside the business
  • external risks where events and actions affect the business from the outside.

As business owners and managers, it is our responsibility to manage business risk. For example, workplace safety is a managerial responsibility and a serious incident can have a substantial negative impact on the business.

How can business risks be identified?

  • The first step is identifying all the risks that could potentially negatively affect the business. Discuss these initially with the management team, dividing them into internal and external risks. For example, in a mining company, external risks could include country or sovereign risk, weather risk, exchange rate risk and economic risk. Internal risks could include operational risk, safety, people, customers, events such as power outages and fire, and reputational risks.
  • The second step, after identifying the risks, is to assess each of the risks. In my experience, the most effective method is to develop a risk matrix where severity or consequence is rated against the likelihood of the event occurring. Effective communication and consultation with the management team and other stakeholders will improve the quality of the risk assessment. For example, involve an expert in IT to help assess the risk of data breaches and system breakdowns.

Risk Management Matrix

  • The third step, after assessing and ranking the risks, is to develop a risk management plan. There is an international standard (IEC/ISO 31010for risk management, which covers identification, analysis, evaluation, monitoring and reviewing risk. This process is very detailed and involves other disciplines such as finance, safety and human resources.

The management of risks falls into four main areas:

  1. Avoidance – eliminate the risk. A good example is decommissioning dangerous machinery.
  2. Reduce – actions that mitigate the risk. In warehousing, where the risks of manual handling injuries are high, place limits on carton weights and have regular ‘toolbox’ safety meetings to reinforce the importance of using equipment safely and reporting heavy or awkward stock items.
  3. Share – transfer, insure or outsource. Some obvious examples include insuring against events such as fire and accidents, and outsourcing transport services to a third party who have managerial expertise in this area.
  4. Retain – accept the risk and have a plan to manage it. In transport, this could include improved selection of drivers, driver training and ensuring vehicles are maintained to the highest standard.

The risk management plan should have the identified risks listed in a risk register. It should include the following:

  1. Responses – actions to mitigate the risk
  2. Contingency plan – plan if mitigation strategy fails
  3. Risk rating – severity, likelihood and residual
  4. Trigger – what is likely to trigger the risk occurring
  5. Owner-manager or person responsible.

Although not all risks can be eliminated – and some risks are inherent in the industry or business – having a plan, monitoring and reviewing the risks regularly, and updating the plan when required is good practice. The collapse of McAleese Transport  is an example of how poor management of mitigating risks can have severe implications on a business and its employees. In conclusion, the risk management plan should include a crisis management plan.

What are the risks in your business?

Can you categorise the risks easily into consequence and likelihood?

Are they in your risk management plan?

So who were Burke and Wills?

“No expedition has ever started under such favourable circumstances at this”.

Robert O’Hara Burke – leader of Burke & Wills Expedition

Yesterday over 160 years ago, watched by 15,000 cheering people, 19 men, 26 camels, 23 horses and six wagons loaded with 20 tonnes of supplies, including 80 pairs of boots, a cedar-topped oak desk with matching chairs, a bath, rockets, a Chinese gong and six tonnes of firewood, left Royal Park in Melbourne heading north. It was the first expedition in Australia to use camels for transport. This was the start of the famous Burke and Wills expedition. Sponsored by the Royal Society of Victoria the expedition was attempting to be the first to cross Australia, from south to north and return. By the second day at Essendon, only eight kilometres from Melbourne, three of the six wagons had broken down.

It was the best equipped expedition in Australia’s history, sponsored by a Victorian Government, flush with the wealth from the Gold Rush, and the Royal Society of Victoria. It was led by an Irish-born police officer, Robert O’Hara Burke.  Initially the second in command was George Landells, but he left the expedition less than two months later following disputes with Burke, so, William John Wills replaced him. The first night, Burke rode back to Melbourne to see Julia Matthews perform at the Princess Theatre as he was infatuated with her. It is alleged that Burke’s main motivation for leading the expedition was to win Julia’s heart and her mother’s approval. It took the expedition two months to reach Menindee in western New South Wales, even though it took a mail coach just over a week to make the same journey.

Burke, following a questionable army career where alleged gambling debts meant he had to resign his commission, joined the Irish Constabulary. When dissatisfied there, he boarded a ship for Australia. With the Gold Rush in full swing and the resulting chaos, and a shortage of police he managed to secure a position as a Police Inspector. He gained a reputation as an eccentric, a gambler, a risk-taker, and a strict disciplinarian with a “talent” for getting himself lost. Through connections and lobbying Burke somehow got himself appointed as the leader of the expedition. Burke had no knowledge or experience in managing an expedition and had never travelled in the Australian Outback. Wills in contrast, was a surveyor and scientist and was considered by his friends as dependable, rational and intelligent.

By June 1861 over eight months later, nine of the original 19 men had died, including Burke and Wills. When it became apparent that the expedition was in trouble, four separate expeditions went into the Australian interior and not one person lost their life.

So, what went wrong?

It was obviously a well-equipped expedition, backed by a government and a Royal Society.

By the time the expedition reached Cooper’s Creek in central Australia, the outer limit explored by Europeans it was early summer. The sensible action would have been to wait until after summer when the severe desert heat had subsided. However, Burke decided to make for northern Australia with three other men to beat a rival expedition from South Australia, led by John McDouall Stuart. Burke instructed a party to wait behind for three months. In the searing summer heat, the expedition walked up to 30 kilometres a day until they reached the north coast of Australia. By then, the animals and men were exhausted. Instead of spending time recuperating they headed back, not before letting some of the camels go which could have been used as food.

On the return journey, the men became exhausted and began to run out of food. One of the men, Gray died, and they began to eat the remaining camels. By the time they reached the Cooper’s Creek depot over 4 months later, the depot party, who were starting to suffer from scurvy had already left, ironically in the early morning of the day they arrived.  Malnourished and exhausted they were too weak to catch the depot party heading south. The survivors’ meagre supplies soon ran out and despite trading their fishing gear for some fish, they failed to befriend or observe how the local the local aboriginals were able to hunt and gather food. Burke had little respect for the local people and in one incident fired over the heads of some aboriginals who tried to offer them food. Just over two months after arriving at the depot, both Burke and Wills died of starvation. Only King survived. He was taken in by the local Aboriginals.

What management lessons are there for managers in the failure of the Burke and Wills expedition?

Here are three lessons I think we can learn from Burke and Wills.

  1. Leadership – the lack of sound leadership often leads to failure. Clearly Burke was a brave man, clearly irrational and mentally unfit to lead such an expedition. Moreover, bravery is not an alternative to experience and leadership.
  2. Planning – there is no substitute for sound planning. Right from the start the expedition was poorly planned. It had too much equipment, much of it not needed. Travelling in the Australian Outback in summer with its extreme temperatures was ludicrous. Furthermore, Burke had no bush skills and left a trail of confused orders and wasted equipment. The 20 gallons of lime juice to prevent scurvy was dumped early in the expedition leading to the depot party suffering from scurvy. In contrast explorer John McDouall Stuart, Burke’s rival in crossing Australia was an experienced bushman. He carefully planned and after several exploratory expeditions in previous years, successfully crossed Australia in 1862
  3. Bureaucracy – Governments and bureaucracies do not lead to the most appropriate outcomes. Flush with government money and with issues of egos, arrogance and prestige, the Royal Society selected an expedition leader who was clearly unsuited for the job and who purchased inappropriate equipment. For example, why would you need six tonnes of firewood, a bath and cedar-topped desk?

If you are interested in learning more about the expedition, I recommend the following book:

“The Dig Tree”, by Sarah Murgatroyd 2002

A lesson in taking information at face value.

“Get your facts first, then you can distort them as you please”

Mark Twain – American author and humorist

Many years ago we were staying with some distant relatives in the Orkney Islands. Our visit became a lesson in not taking alleged ‘facts’ at face value.

Over a few drinks we were asked: “Have you heard of the island of St Kilda?”

No.

This sparked our interest as at the time we were living in the Melbourne bayside suburb of St Kilda. The local Australian Rules Football club were called ‘the Saints’ with a saint as their emblem.

Was the suburb named after a Christian saint?

No.

St Kilda is a group of wind swept, isolated and now uninhabited islands in the Outer Hebrides of Scotland. The main island of Hirta, until 1930 had been inhabited for hundreds of years and was a breeding ground for millions of seabirds, from gannets, puffins to fulmars.

It appears that the word St Kilda is derived from the Norse or Vikings ‘sunt kelda’ meaning ‘sweet well water’ and was not named after a Christian saint. I could guarantee that very few if any St Kilda Football Club supporters would know that there was never a saint called St Kilda.

Our relatives gave us a book to read about the history of St Kilda. It was a fascinating story about a group of islanders who had a hunter gatherer lifestyle. During the summer and spring months the men gathered sea birds, collecting them for feathers for pillows and bedding, and oil to sell to the occasional passing ship.  They clambered up and down the 300 or more metre cliffs in bare feet – assisted by large prehensile toes allowing them to climb on the cliffs more easily.

Was the suburb of St Kilda named after the islands of St Kilda?

Not exactly.

In the 1840s a trading ship called ‘The Lady of St Kilda’ was anchored in Melbourne for many months. The area was referred to locally as ‘The St Kilda foreshore.’ Legend has it, that the then Governor La Trobe named the new village St Kilda.

Not from a Saint, or an island but a ship.

However, the ship had a link to the islands of St Kilda. The owner of the ship, Sir Thomas Dyke Acland named the ship to commemorate a visit to the island of St Kilda by his wife, Lydia, in 1810. Acland had named the vessel in honour of Lady Grange, the wife of a Jacobite Noblemen, who in 1734 who was about to reveal her husband’s treachery. She was imprisoned on St Kilda for 17 years. It is hard to imagine how the noblewoman endured years of living alone in extremely primitive conditions in a stone dwelling with an earthen floor, amongst a small local population who spoke no English (the islanders spoke Gaelic) in the island’s harsh climate and lifestyle.

What are the management lessons from the St Kilda story?

As managers we should never accept things at face value as what are believed to be ‘facts’ may not be true. This could affect how we effectively manage the many situations that arise in the course of our managerial responsibilities. Furthermore, it is important to be curious, do your homework and ask questions.  Looking back on my career, at times I certainly have been guilty of not heeding this advice.

If you would like read a book about the history of St Kilda (not the Australian Rules Football Club), the book below is recommended.

“Island on the Edge of the World: The Story of St. Kilda,” by Charles Maclean

Are you chasing field mice or antelopes?

Lion anetlope

 

“A lion is fully capable of capturing, killing, and eating a field mouse. But it turns out that the energy required to do so exceeds the caloric content of the mouse itself. So a lion that spent its day hunting and eating field mice would slowly starve to death. A lion can’t live on field mice. A lion needs antelope. Antelope are big animals. They take more speed and strength to capture and kill, and once killed, they provide a feast for the lion and her pride. … So ask yourself at the end of the day, ‘Did I spend today chasing mice or hunting antelope?’”

Newt Gingrich – speaker of US House of Representatives

What is Gingrich’s underlying message?

Certainly, the Pareto Principle or 80/20 rule is implied in this quotation . However, there is another message for managers and business owners here, that is to focus with discipline on the issues that provide the best return for your resources of time, money and expertise. The danger is business failure, as explained by Michael E Gerber in The e-Myth Revisited – Why most small businesses don’t work and what to do about it. This is where a business owner and manager who understands the technical nature of the business but does not understand the business is likely to fail. In summary, they do what they are comfortable in doing and what they know, not what they should be doing.

Jim Collins in his book Good to Great: Why some companies make the leap and others don’t, describes how a ‘culture of discipline’ is evident in successful companies. This begins with disciplined leaders who display empathy, personal humility and intense focus. They do not suffer from ‘I’ strain and rarely appear in the media seeking celebrity. Before purchasing our logistics business, I worked for a privately-owned transport company. In an industry that was known for its larger than life personalities who courted the media, the owner was virtually unknown. He ran a highly successful business which was far more profitable than many of the publicly listed companies in the industry. He was extremely disciplined in strictly adhering to his market niche which enabled higher profits and greater customer service.

In another example of discipline, I managed a large division of a transport business in a large regional centre where the managing director was passionate about truck safety. This involved vehicle journey’s being monitored by on-board computers to prevent speeding, exceeding mandated driving hours and excessive idling as it wastes fuel. If drivers exceeded the speed limit by 5% in a week they were disciplined and if this occurred three times within 12 months the driver was terminated. Like the lion it was targeting the areas that significantly affected the successful operation of the business. Each week the performance of the trucks and drivers was given to me to action. I decided against the advice of my peers to post the results on the drivers‘ notice board.

Did the drivers react negatively to being compared to others as I had been warned would occur?

No.

Instead each week many of the drivers would compare their performance of their vehicles and themselves. Some drivers would personally seek me out to ask if there were problems with their vehicle and why for example their vehicle had appeared to be idling excessively. They became self-disciplined team members who were more accountable and didn’t need to be micro-managed. Fuel economy improved and more importantly our accident record was the best in the business despite having drivers’ company-wide who travelled the most kilometres each week. Within the ‘safety framework’ a culture of freedom and responsibility had developed.

For a business to grow or change in a positive way, the discipline required must be where consistent behaviours align with achieving the organisation’s goals. Note the words – “discipline” and “consistent”. The aim is for consistent productive goal-oriented behaviours to become habits. Habits once formed become entrenched, however they must be right habits and they must align with the organisation’s vision and goals. In the drivers’ example, safety and performance became a habit. With the niche transport company, the discipline was only remaining in its narrow market niche. Both examples required disciplined people acting in a disciplined manner, demonstrating that discipline must start at the top.

Here is another example. I was engaged to undertake a business review by a niche logistics business which had suddenly begun losing money. Determining the prime reason was relatively easy; the business had lost a major customer who had contributed the majority of their previous profits. This was only a symptom of what was wrong. A walk through their numerous warehouses provided some answers. The warehouses were dirty, stock was not in the correct locations and staff were inadequately supervised. Management was focussed on managing day to day crises, were not enforcing operational disciplines, rates had not increased in several years and customer service was inconsistent. Classic chasing field mouse behaviour.

The business review formed the basis of a new business plan. New benchmarks for performance were established and a renewed commitment to improving customer service was implemented. This was underpinned by imposing operational disciplines in the warehouse following consultative meetings with staff. Several managers and supervisors exited the business and a new general manager and senior management team were appointed. In the first year the company made a modest profit. In the second year, profits exceeded expectations, revenue grew through targeted strategic sales in the business’ market niche, prices increased, unprofitable customers were forced from the businesses, a warehouse was closed and new leases with more favourable terms were negotiated. This was a good practical example of what Jim Collins describes in his book, Good to Great: Why some companies make the leap and others don’t; disciplined people – first who; then what, disciplined thought; confronting the brutal facts, and disciplined action; a culture of discipline.

Being a successful business owner, leader and manager requires discipline. Lack of discipline manifests itself physically in examples such as untidy and dirty warehouses, poor telephone manners and uninspiring first impressions.

What are the antelopes you should be hunting in your organisation?

Have you identified the field mice?

Is it clear to others in the business?

Do the antelopes align to your vision, values and goals?

Discipline in the areas of accountability, teamwork, and attention to detail are required. Disciplined leadership is defined by is defined by sound habits, rigour, consistency and routines. A disciplined environment assists in putting both management and employees on their best behaviour leading to improving productivity and profits.

Retaining long term good customers…

‘Customer satisfaction is worthless. Customer loyalty is priceless.’

Jeffrey Gitomer – internationally renowned expert on sales and customer loyalty

How many sales executives are given sales targets for new customers rather than nurturing and maintaining current long term customers?

Too often in business today, the focus is on finding new clients – often at the expense of existing clients. Generally, there are two types of salespeople with different personalities. They can be best described as either hunters or farmers. In the business sales process, they have different roles. A hunter’s role is a sales role – find new clients. A farmer’s focus is maintaining accounts and developing long-term relationships with existing customers – an account management role.

Attracting new customers is a challenge and, although it can be rewarding, it involves planning and hard work – and it costs money. International consultants Bain & Company found that the cost of attracting new customers was seven to eight times more expensive than retaining existing customers. They also found that an increase of 5% in retaining current customers could increase profits from 20% to 80%.

While acquiring new customers is important, retaining current profitable customers is a far more cost-effective strategy. Listening to current customers and actively seeking their feedback provides an opportunity to improve service, develop new services and provide a new source of referrals.

Remember: over 65% of customers leave due to indifference.

Do you have a system in place to nurture and manage current profitable customers?

I was providing advisory services to a business who were faced with two of their largest customers threatening to leave. There had been a history of poor service and strained relationships. Both client businesses were headed by difficult and often unreasonable personalities. Careful analysis of each business showed that one was not growing and was unprofitable to service, whereas the other was growing and profitable. To the credit of the business’ general manager, and despite pressure from the owner, he took action. While it forced the unprofitable customer to leave, at the same time he developed a strong working relationship with the other customer – which resulted in the signing of a new contract with increased rates. The customer also recommended the business’s services to another company. This is a good example of successfully managing an existing profitable customer.

Are farmers more important than hunters as salespeople?

No.

It depends on the business’s objectives. Both are needed for a business to grow. It is very important to maintain the current profitable customers, as it is cheaper for the business and offers other opportunities to improve and expand both services and products. The emphasis is on ‘profitable’ customers as, according to the Pareto Principle, not all customers are profitable. Making and maintaining sales need not be a difficult task. It requires an understanding of the business and must be aligned with the business’s plan and goals.

Do you know who are your most profitable customers?

Why are they the most profitable?

Which customers are you not making money from?

The Charge……the lessons

“ With bayonets drawn, they charged the town, they were a fearsome sight

But they had fulfilled their orders, they took the town by night”

From the poem “The Wells of Beersheba” by Warren Eggleton

105 years ago during World War I, British, Australian, New Zealand, French and Empire troops stormed ashore at Gallipoli in western Turkey on 25th April. The plan was to seize control of the strategic Dardanelles Strait and open the way for their naval forces to attack Constantinople, the capital of Turkey and the Ottoman Empire. The campaign failed. The Turks never succeeded in driving the Allied troops back into the sea, and the Allies never broke out of their beachhead. After eight months of bitter fighting the peninsula was evacuated in December 1915.

On 25th April, each year ANZAC Day (the acronym ANZAC stands for Australian and New Zealand Army Corps) is commemorated in Australia and New Zealand with marches and ceremonies, even though the Allies were defeated. This year due to the COVID-19 pandemic, ANZAC Day will not be publicly celebrated, for the first time since 1916.

Ironically Australia’s first great World War I victory, the Charge of Beersheba that ended the Battle of Beersheba is barely remembered or celebrated. It is considered history’s last great cavalry charge and provides some great lessons for managers.

Beersheba (now Be’er Sheva, in modern-day Israel) is situated in desert terrain and was a strategically important town. Here the Allied advance into Palestine was blocked as it was protected by over 4,000 well-armed Ottoman Empire troops in trenches. Beersheba an important transport hub had water wells that were vital in the desert for both men and horses.

The battle for Beersheba began at dawn on 31st October 1917 when the British infantry began attacking with artillery and air support combined with infantry attacks. By mid-afternoon the British had failed to capture the town. The situation had become serious – horses and men needed water. In the late afternoon, looking at a potential defeat the order was given to the Australian Light Horse to charge the Turkish trenches protecting the town.  800 mounted Light Horsemen, armed with bayonets not cavalry sabres, charged over 6 kilometres of open ground towards Beersheba. Initially the Turks opened fire with shrapnel. This was ineffective against the widely spaced horsemen. They then used machine guns. which were quickly silenced by British artillery. The charge caught the Turkish defenders off guard. They failed to allow for the speed of the charge and had little time to recalibrate their weapons for close range fighting.  The Light Horsemen, whose horses could apparently smell the water, jumped over the trenches. Some men dismounted and attacked the enemy with rifle and bayonet from the rear. Others galloped ahead and captured the town and its vital water wells.

If the Allies had failed, over 60,000 troops would have been stranded in the desert without water. If they didn’t prevail, men and their horses who had already been without water for two days faced dying of thirst. It was also the first major victory for the British army over the Turks in World War I. More importantly, the Battle of Beersheba was a precursor to capturing the city of Gaza. The city barred the way north to the important cities of Jerusalem and Damascus. Within a week Gaza fell, and the Allies marched north routing the Turkish troops. The campaign to secure the Sinai Peninsula ensured the Suez Canal remained open to Britain and its allies and led to the collapse of the 400 year old Otterman Empire.

So, what are the lessons for managers from the Charge of Beersheba?

Here are three lessons, that as managers we can learn from the Charge of Beersheba.

  1. 1. A leader needs to be flexible. The Australian commander, General Chauvel had planned to make a dismounted attack on Beersheba but as evening approached, ran out of time. The alternative was to make a cavalry charge. The traditional strategy was to dismount and attack with rifles from a distance. In the open desert this would have made the Light Horsemen vulnerable to shrapnel and machinegun fire. Clearly a different approach was required so a new strategy was devised. The Light Horse attacked like a cavalry unit, with bayonets in their hands like sabres, thereby catching the Turks by surprise. Their speed and determination outweighed their limitations of protection and weapons.
  2. Planning. There is no substitute for sound planning. Fighting a war in a desert required careful planning as Beersheba was surrounded by desert. This posed obvious logistics challenges for moving troops and equipment, particularly mounted troops. British army engineers established forward supply dumps of water and reopened wells that had been blocked by the Turks. This secured sufficient water for the troops and horses as they moved across the desert. Although the town was protected by a system of trenches, there was no barbed wire on one side because the Turks believed they would not be attacked through the desert from the southeast. The British-led forces, by careful planning and doing their homework  proved this to be a false assumption. Logistics planning and doing your homework is critical whether in warfare or in business
  3. People. Success in any organisation depends hugely on the quality of the people. The importance of experience and training is critical. Many of the Light Horse men involved in the Charge of Beersheba were battle hardened from fighting on the beaches at Gallipoli, and most were tough Australian bushman who were experienced horsemen and used to tough living conditions having also trained extensively in Egypt for desert fighting before the Palestine campaign. The Turks led by German officers, were poorly trained as evidenced by them failing to set their rifle sights correctly and not being able to adjust to the changing circumstances.

What do you think the management lessons from the Charge of Beersheba are?

If you are in Australia or New Zealand on ANZAC Day please don’t forget to remember the sacrifices made by service men and women in your country’s defence.

Note: if you are interested in reading about this event in more detail, I would recommend reading the following books:

Paul Daley, Beersheba, Melbourne University Press, 2009

Roland Perry, The Australian Light Horse, Hachette Australia, 2009

If it’s not written down, it didn’t happen!

“If it is not written down, it does not exist.”

Philippe Kruchten –  Academic and software engineer

If it is not written down it didn’t happen. Now that’s a big statement.

Does this sound absurd?

Is it the truth?

Many years ago, I was listening to a recording of oral family history. It was claimed by a distant cousin that her father (my great grandfather) met the bushranger Thunderbolt (bushrangers were outlaws and highwaymen) as a young boy. Thunderbolt arrived unexpectedly early one morning on his father’s small land holding in the New England district of NSW. The story goes that Thunderbolt joined them for breakfast and while having breakfast he kept looking nervously out the window. Thanking them for their hospitality he gave them a gold sovereign, mounted his horse and rode off. Not long afterwards some mounted police arrived.  Apparently, this occurred in 1864. When I checked the dates, I found that my great grandfather was not born until 1866 and Thunderbolt was in jail in 1864. Although the event probably happened, it did not happen in 1864.

There is business lesson here that should not be under estimated.

My advice is to write down and record the most important things.

If a legal issue arises, the written word is far more reliable than someone’s recollection. It is important particularly with issues of people management and workplace health and safety.

Let me give you an example.

As a young manager in my mid 20s, I was managing a concrete plant in Canberra. The fleet of owner drivers continuously threatened and intimidated me. It was an unusual situation when looked at through today’s eyes. The drivers were independent businessmen, who owned a concrete truck. This was the same for four other ready-mix concrete companies also operating in Canberra. Despite being businessmen, the owner drivers were all members of a trade union. With the union’s assistance they restricted the number of trucks operating, thereby restricting competition and increasing the rates they could charge.

It was a business cartel restricting competition.  It was not a legally or government sanctioned cartel such as taxi plate licences. The construction industry was booming and the capacity to deliver concrete was restricted, adversely affecting the construction industry. The situation deteriorated to a point where driver’s representative in our business tried to tell us when and to who we could deliver concrete.

This was clearly illegal under the Trade Practices Act. Businesses were not allowed to collude and restrict competition and increase prices. This “arrangement” was adversely affecting our customers. On several occasions I was confronted and threatened. Having some knowledge of the law and knowing that this ‘arrangement’ was probably illegal, when threatened I quoted back that what they were doing was illegal. I then noted it in my work diary.

More than three years after I had left the business, I received a call from the company’s lawyer. The new CEO had decided to use Canberra as a test case to initially overturn the “arrangements” and then use it as a precedent in the state of NSW, to break up the arrangements there. Luckily, I had kept my work diaries and when called as a court witness, was able to quote the times, dates and conversations. The company won the court case and the cartel arrangement that had been supported by the union was quashed.

This outcome demonstrates the importance of recording events, as the diary entries were one of main reasons the court case was won. Too often in business, we are busy and fail to record important events only to find out later, that they should have been. The ready-mix drivers’ case was an important learning experience for me.

Employee issues such as performance management and safety requirements are areas which are important, and discussions and events must be recorded. Our memories cannot be relied upon as we cannot remember dates, times and actual conversations.

The Thunderbolt story illustrates the unreliability of oral history and memory. As managers, writing down important things is not optional. Many of us hate paperwork, however it is an essential part of our job.

What should you as a manager be recording?

Where should you file these records?

 

The power of a vision

“I believe that this Nation should commit itself to achieving the goal, before this decade is out, of landing a man on the moon and returning him safely to earth”

John F Kennedy – USA President

This quote delivered in 1961 by President Kennedy is one of the best examples of a vision statement as within the decade, man had landed on the moon and returned safely. On 20th July 1969, astronauts Armstrong and Aldrin landed on the moon and returned safely to earth fulfilling Kennedy’s vision.  However, it is important to remember that the moon landing was the result of decades of work by hundreds of thousands of people working across the disciplines of science, technology, and engineering, peaking at a cost of 4.41% of the Federal US budget in 1966.

How important is it for an organisation to have a vision?

A vision is a picture or an idea. It helps focus us on the future, provides inspiration and assists in overcoming the obstacles that inevitably appear along the way. A vision is a target. It should be  aspirational, perhaps like the concept of a BHAG (Big Hairy Audacious Goal) as descibed in Jim Collins’ book; Built to Last: Successful Habits of Visionary Companies and be successfully communicated throughout the organisation.

An example of the power of an aspirational vision is Rotary International’s PolioPlus program. In 1979 Clem Renouf, the Australian President of Rotary International read in the Readers Digest how small pox had been eradicated. After discussing this with a medical expert, he had a vision that the world could be polio free. At the time, more than 350,000 people were infected by polio in 125 countries each year. Later that year Rotary’s Board of Directors passed a resolution for a program for “the eradication of poliomyelitis and the alleviation of its consequences” throughout the world. Subsequently, in 1985 the PolioPlus program was adopted with the aim of eradicating polio worldwide. With so many countries where polio was still endemic this was a challenging vision.

Rotary initiated the program and together with the support of UNICEF, WHO and other organisations such as the Bill and Melinda Gates Foundation have almost achieved Clem Renouf’s original vision. By 2017 only 22 cases of polio were reported in just three countries, Afghanistan, Nigeria and Pakistan. At times there were difficulties in overcoming cultural suspicion, low levels of education, training staff to manage and administer the program, political insurgencies and geographical remoteness. However, despite these obstacles, the original vision ensured the program continued. It is now almost complete.

There are many websites and other sources who provide a methodology on how to create a vision statement for your organisation. As can be demonstrated from the above two examples, strong and clear visions are powerful tools and have the ability to provide a framework for the future. Visions should be compiled into a vision statement in a suitable form to communicate to staff, customers, suppliers and other stakeholders. Vision statements define goals and assist in creating a path for the future.

Does your organisation have a vision statement?

If not, do you think that the organisation would benefit from having a vision statement?

President Kennedy and Rotary’s Clem Renouf’s vision are great examples of the impact of having a vision statement.