Tag Archives: Business Advice

Vanishing Stripes: The Tragic Tale of the Tasmanian Tiger and Lessons for Business

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 “Cowardly, as stealing down on the sheep at night and wantonly killing many more than it could eat, as being worthless for its skin” – description of the Thylacine in the 1880s in The Hobart Mercury newspaper!

Many years ago, I was flicking through a photo album of my grandparent’s honeymoon in Tasmania in the late 1920s. In the album was a photo of a Tasmanian Tiger, or Thylacine at the Hobart Zoo, the last of the species to die in captivity in 1936. I was fascinated that they had seen an animal, that is now extinct.

What was the Tasmanian Tiger?

It was not a tiger, but a marsupial carnivore with a slender body, dog-like head, and distinct dark stripes across its back. Native to Tasmania, it once roamed the Australian mainland but disappeared from there around 3,000 years ago, probably due to the introduction of the dingo which was a more effective and efficient hunter. Confined to Tasmania, it was the largest carnivorous marsupial of modern times.

What happened to it?

As European settlers moved into Tasmania in late 18th and early 19th century, being a carnivore, it developed a reputation as a livestock killer. Whether this was justified is open to debate. However, it was seldom seen and historical reports suggested it roamed in open grasslands rather than dense forest.

While human activities played a significant role in the extinction of the Tasmanian Tiger, other contributing factors included intensive hunting, habitat destruction, and diseases introduced by the European settlers. More importantly, government and bureaucratic incompetence played a critical part. In particular, in the 19th and early 20th centuries the Tasmanian government implemented bounties to protect the livestock industry. The indiscriminate killing of Tasmanian Tigers led to a significant reduction in their population, accelerating their path towards extinction. Furthermore, legislation was enacted to safeguard the Thylacine, but the measures were implemented too late and proved insufficient to counter the threats it faced. While the last known Tasmanian Tiger died in 1936, the lack of understanding of Thylacine biology also prevented successful breeding.

Do you think there are any lessons for managers in the extinction of the Tasmanian Tiger?

Here are three to consider:

  1. Adaptability in the Face of Change:

The demise of the Tasmanian Tiger is, in part, a story of failure to adapt to changing circumstances. Businesses, like species in the natural world, must be adaptable to thrive. The introduction of new technologies, shifts in consumer behaviour, and evolving market dynamics require businesses to embrace change, innovate, and remain agile.

Example: Blockbuster Video’s failure to adapt to the rise of online streaming is a stark reminder of the consequences of not embracing change. In contrast, Netflix, recognising the shifting landscape, evolved its business model to dominate the streaming market.

  1. Sustainable Practices for Long-Term Success:

The extinction of the Tasmanian Tiger emphasises the importance of sustainable practices for long-term survival. In the business world, sustainability extends beyond environmental considerations to encompass ethical business practices, social responsibility, and long-term planning.

Example: Patagonia, a renowned outdoor apparel company, has embraced sustainability as a core principle. Their commitment to environmental and social responsibility has not only earned them customer loyalty but also positioned them as a leader in the sustainable business movement.

  1. Government Policies and Business Impact:

The tragic tale of the Tasmanian Tiger underscores the impact of government policies on the fate of a species. In the business regulatory frameworks, industry standards, and government policies can profoundly influence the success or failure of enterprises.

Example: The Australian government introduced bans on tobacco advertising, implemented laws on plain packaging with graphic health warnings and removed visible displays of tobacco at point of sale and implemented high taxes on tobacco products. Daily smoking rates declined from 24% of adults in 1991 to 11% today. However, cigarettes became so expensive at over $40 per pack (compared to an average of $10 in the USA) it provided an opportunity for organised crime to smuggle illegal cigarettes into Australia resulting in arson and murder in ‘tobacco turf wars’ which continue to this day. Government actions and their reliance on tobacco taxes created opportunities for organised crime.

In conclusion, the extinction of the Tasmanian Tiger is a reminder that human actions, bureaucratic incompetence, coupled with environmental pressures helped sealed its fate. In the world of business, lessons from the demise of the Tasmanian Tiger include the need to embrace adaptability, foster sustainable practices and ensure you understand the implications of government policies when planning for the future.  

Can you think of any other lessons for businesses?

@thenetworkofconsultingprofessionals

What’s the Dunning Kruger effect?

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“One of the painful things about our time is that those who feel certainty are stupid, and those with any imagination and understanding are filled with doubt and indecision.”
Bertrand Russell – British philosopher

What is the Dunning-Kruger effect?

In 1999 two social psychologists David Dunning and Justin Kruger identified a cognitive bias based on a bank robber who believed that lemon juice would make his face invisible, as lemon juice makes ink invisible. Setting off to rob his first bank, bank robber McArthur Wheeler waved at the CCTV cameras as he entered and left the bank. He was arrested soon after and exclaimed “But I wore lemon juice!”.

Similar events have occurred in South Africa where bank robbers and shoplifters have attached bottles of muti (traditional African medicine) to their belts thinking that this made them invisible. However, this is more a story of witchcraft rather than incompetence or over-estimating their abilities.

The Dunning-Kruger Effect is where individuals who have limited knowledge, competence or ability, wrongly imagine themselves to be very good at something they are obviously not!

In history there are many examples of the Dunning-Kruger effect. Hitler is but one example. He considered himself a great artist, but twice failed entry to Vienna’s Academy of Fine Arts. The admissions committee decided his drawing skills were “unsatisfactory”. Hitler also thought he was a military genius, and believed he could be the only man apart from Genghis Khan to successfully invade Russia. Sadly, this delusion led to the unnecessary deaths and suffering of tens of millions of people.

Does Dunning-Kruger effect have any relevance for us as managers?

Of course it does!

There are two effects:

  1. Not only are people incompetent, and this
  2. Incompetence robs them of the ability to realise how incompetent they are!

To put in bluntly, at the extreme end of the Dunning-Kruger Effect, stupid people do not realise they are stupid. A little knowledge can be a dangerous thing!

This can have unfortunate consequences. Hitler is but an extreme example.

Many incompetent managers suffer from the Dunning-Kruger effect. A lack of self-awareness is a common sign, although not all managers who lack self-awareness suffer from the Dunning-Kruger Effect. Managers who overestimate their abilities often are unable to recognise their own limitations. This leads to mistakes and poor decision making. Believing themselves to be experts in the field, they are often unwilling to seek feedback or ask for help,

Do you have any examples in your work life of the Dunning-Kruger effect?

I certainly do!

Here are three examples to consider.

  1. Over-estimate their own skills and achievements. For example, a dictatorial manager who is a poor communicator, micromanages and fails to listen. They believe they are a natural leader and refuse to acknowledge the negative impact their management style is having on their team.  This lack of self-awareness breeds frustration and low morale and can lead to a toxic work environment. Ultimately this harms the organisation’s success. I once assisted a fellow consultant in an organisation where the CEO thought because he had a PhD that he was the smartest person in the organisation and overestimated his success, despite evidence to the contrary. Morale was poor and the business was losing money.
  2. Don’t recognise the skills and knowledge of others. The manager who ‘knows best’ and fails to consult with their team. This can manifest in a variety of ways, such as being very vocal about one’s views, even in the face of evidence to the contrary, or being unwilling to consider alternative perspectives, believing they are the only one who truly understands the situation. This thwarts team building and staff development. In the example above, the CEO made the statement that there were ‘no real managers’ in the organisation and they were in reality ‘just clerks’. He never consulted them, asked for their opinions or sought their considerable expertise and experience. After he exited the business, we sought to engage the staff through a series of workshops seeking their input. The turnaround in morale was immediate.
  3. Resistance to Feedback and Constructive Criticism.  People exhibiting the Dunning-Kruger Effect may be resistant to feedback and constructive criticism. They may see any criticism of their views or actions as a personal attack, leading to defensiveness and an unwillingness to listen to others’ perspectives. Also, they refuse to recognise their own mistakes. This lack of insight often leads to poor team morale. I can remember a situation when I was in business where one of our partners refused to accept any feedback when we brought in an external consultant to review the business. His reaction was to sack the consultant.  

Encourage Self-Reflection and Self-Assessment

If you recognise the Dunning-Kruger Effect in yourself, how should you deal with it?

  • Encourage Self-Reflection

One key strategy for dealing with the Dunning-Kruger Effect is to encourage self-reflection and self-assessment. People who are aware of their own limitations and weaknesses are more likely to seek help and feedback, leading to better decision making and personal growth.

  • Provide Constructive Feedback

Another strategy is to provide constructive feedback to people who may be exhibiting the Dunning-Kruger Effect. It’s important to approach feedback in a non-judgmental way, focusing on specific behaviours or actions rather than criticising the individual as a whole.

  • Promote a Growth Mindset

A growth mindset can also help to combat the Dunning-Kruger effect. People who believe that their abilities can improve with effort and practice are more likely to seek feedback and learn from their mistakes, leading to personal and professional growth.

In conclusion by understanding the signs of the Dunning-Kruger Effect, we can better recognise it in ourselves and others, and take steps to address it. By encouraging self-reflection, providing constructive feedback, promoting a growth mindset, and fostering a culture of humility and openness, we can overcome the limitations of the Dunning-Kruger Effect and achieve our personal and professional goals.

What do you think?

@thenetworkofconsultingprofessionals

The Rise and Fall of Pet Rocks: A Lesson in Business Innovation

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“How you sell is more important than what you sell.”
Andy Paul – sales author

Introduction

Fifty years ago in 1975, Gary Dahl an advertising executive and entrepreneur from California came up with the idea of a “pet rock”.  Few can rival the unexpected business success story of this quirky phenomenon known as the “Pet Rock”.

The Birth of an Idea

The concept was simple yet absurdly ingenious: a smooth, ordinary-looking rock was marketed as a low-maintenance, no-hassle pet. Dahl’s inspiration reportedly came during a conversation with friends about the hassles of traditional pet ownership, such as feeding, grooming, and training. He famously quipped, “I have a pet that doesn’t require any of that! A pet rock!”

Dahl’s idea was to offer people a humorous alternative to the responsibilities of caring for a living pet. He saw an opportunity to capitalise on the countercultural ethos of the 1970s, which embraced whimsical and anti-establishment ideas. Dahl believed that people would be willing to pay for a simple, amusing concept that poked fun at the conventional norms of pet ownership.

The Launch and Marketing

Each rock was carefully selected for its smoothness and appeal, placed inside a small cardboard box with breathing holes, and nestled on a bed of straw. The packaging was intentionally tongue-in-cheek, featuring a detailed “instruction manual” on how to care for your new “pet.” The manual humorously advised owners to ensure their pet rock received enough sunlight and encouraged them to name it.

Dahl’s marketing strategy was equally tongue-in-cheek and relied heavily on humour. He conducted interviews and promotional events, emphasising the simplicity of owning a pet rock compared to traditional pets. The novelty of the concept, combined with his witty advertising, caught the attention of the media and the public.

The Unexpected Phenomenon

What followed was nothing short of astounding. The Pet Rock quickly gained popularity, capturing the imagination of a broad audience. Despite its absurdity, the concept struck a chord with people seeking a light-hearted diversion from the complexities of life. The Pet Rock became a cultural sensation, gracing the pages of magazines and newspapers, and even making appearances on television talk shows.

Dahl’s entrepreneurial success with the Pet Rock was fuelled by several key factors:

  1. Timing: The Pet Rock emerged during a time when American society was experiencing a countercultural wave. People were open to unconventional and humorous ideas, making the concept of a pet rock particularly appealing.
  2. Simplicity: Dahl’s marketing emphasised the simplicity of owning a pet rock, offering a humorous contrast to the responsibilities of traditional pet ownership.
  3. Novelty: The Pet Rock was a novelty item that captured the public’s attention due to its uniqueness. It was something people had never seen before.
  4. Effective Marketing: Dahl’s witty and humorous marketing campaigns helped create buzz around the product and contributed to its success.

The Sales and Revenue

The Pet Rock’s popularity translated into impressive sales figures. At its peak, millions of Pet Rocks were sold, with an estimated 1.5 million sold in the first six months alone. Priced at $3.95 each, the revenue generated from the sale of Pet Rocks reached approximately $6 million, a significant sum in the mid-1970s.

The Decline and Lessons Learned

As with many fads, the Pet Rock’s popularity was short-lived. Within a year, the craze had begun to wane. The initial novelty had worn off, and the Pet Rock was no longer a hot commodity. Dahl’s business venture was a classic example of a short-lived trend, and he wisely recognised the decline in demand.

However, the story of the Pet Rock offers several valuable lessons for business owners and managers. Here are four lessons:

  1. Timing Is Crucial: The success of the Pet Rock was greatly influenced by the cultural context of the 1970s. Dahl’s timing was impeccable, as he tapped into the counterculture of the era. Understanding the timing of your product or service’s launch can significantly impact its success.
  2. Innovation and Uniqueness: The Pet Rock was a groundbreaking novelty item. Its uniqueness and innovation set it apart and captured the public’s imagination. Business owners should strive to offer products or services that stand out in the market.
  3. Effective Marketing: Dahl’s clever marketing strategies played a pivotal role in the Pet Rock’s success. Humour, irony, and effective storytelling can make a significant impact on how a product is perceived and received by consumers.
  4. Understanding Trends and Fads: Dahl recognised that the Pet Rock was a fad, and he wisely adapted to the changing market. Recognising when a trend is on the decline and having an exit strategy is crucial for long-term business sustainability.

In concluding, business owners and managers can glean valuable lessons from the Pet Rock phenomenon. Timing, innovation, effective marketing, and understanding market trends are all essential components of a successful business venture. While the Pet Rock may have been a short-lived craze, its legacy endures as a reminder that even the most unconventional ideas can find their place in the market when the timing is right.

What do you think?

@thenetworkofconsultingprofessionals

Aesop’s fable of The Ant and The Grasshopper

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The grasshopper said to the ant,
“All you ants do is work all day.
You should be more like me and play, play, play!”

With Christmas and the new calendar year approaching, its often a great time to reflect on the previous year and plan for the next, which I have covered in previous blogs.

Rather than using a Christmas or end of year theme, I’ve elected to use Aesop’s fable, “The Ant and the Grasshopper.”

Who was Aesop?

Certainly not a brand of cosmetics! Aesop was a Greek storyteller, said to have lived around 600 BC, who is credited with a number of fables known as Aesop’s Fables, the most famous being the Hare and the Tortoise.

The Fable of the Ant and the Grasshopper.

In summary, a diligent ant works tirelessly throughout the summer to store food for the winter. In contrast, a grasshopper spends his days playing music and dancing, mocking the ant’s hard work and inviting it to join in the fun. The ant, however, remains focused on its task, warning the grasshopper of the harsh winter ahead. As the seasons change, the ant settles comfortably into its nest with ample food, while the grasshopper, unprepared for the cold and without food, faces a grim future.

With the end of year approaching do you think there are any lessons for managers in this fable?

As mentioned earlier, the end of year is certainly a time for reflection and an opportunity to plan for the future. Here are three lessons from the fable:

  1. Preparation and Foresight

The ant’s forward-thinking and preparation for the winter months underscore the importance of strategic planning in management. Leaders should anticipate future challenges and prepare accordingly, ensuring that their teams and organisations are not caught off-guard by unforeseeable events. This lesson emphasises the value of setting long-term goals and working steadily towards them, rather than being swayed by immediate gratifications or distractions.

  1. Resource Management

The careful collection and storage of food by the ant exemplifies effective resource management. For managers, this translates to the prudent allocation of resources, including time, budget, and manpower, to ensure sustainability and growth. Efficient resource management also involves making tough decisions about where to invest effort and assets, and prioritising activities that ensure the organisation’s survival and success in the long run.

  1. Work Ethic and Discipline

The ant’s unwavering commitment to its task, even when tempted to abandon its duties for temporary pleasures, highlights the virtues of work ethic and discipline. Managers should foster a culture that values hard work, responsibility, and persistence. Encouraging a strong work ethic and maintaining discipline within the team are crucial for achieving objectives and maintaining operational integrity, especially when facing adversity or tight deadlines.

In this fable, can you think of any other lessons for managers?

On behalf of my readers, I wish you and your families a Merry Christmas and a Happy New Year.

@thenetworkofconsultingprofessionals

The legend of Lasseter’s Gold Reef…

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“Truth, like gold, is to be obtained not by its growth, but by washing away from it all that is not gold” Leo Tolstoy – Russian writer

As a young boy I remember reading the book by Ion Idriess called “Lasseter’s Last Ride” about the 1930 search for a fabled reef with gold “as thick as plums in a pudding” in the deserts of Central Australia. A rich gold reef waiting to be discovered! I was hooked. And I was not the first. Lasseter’s Reef continues to fascinate even today. Since the fateful 1930 expedition where Lasseter died alone in the desert, many expeditions have been undertaken, and none have discovered the fabled reef.

Who was Harold Bell Lasseter?

Lasseter was born in 1880 in Victoria, Australia. In 1903 Lasseter married while living in the USA. In the USA he changed his name to Harold Bell Lasseter, ‘Bell’ being the surname of a popular American author of a book about a lost gold reef! Returning 5 years later he allegedly spent his time inventing and working in various jobs around Australia. Lasseter twice enlisted in the Australian Imperial Force (AIF) during World War I and was discharged both times without leaving Australia, once for being AWOL and for the second time for being engaged in a brawl. In 1927 he married again whilst still married to his first wife. In 1929 he claimed to have submitted the original design for the Sydney Harbour Bridge and sought compensation for his work. It was rejected. In around 1930 at the onset of the Great Depression, he began lobbying the government and trade union officials to mount an expedition to find a gold reef in the desert that he claimed he had discovered years earlier. Lasseter has been described as a bigamist, fantasist, an eccentric, a swindler, a crank and a difficult character with a reputation as a con man.  

The ‘discovery’ of Lasseter’s Reef

Lasseter claimed that in 1897 while travelling alone in the deserts of Central Australia he had come across a rich gold reef whilst travelling from a false ruby strike in South Australia. His horse had died, and he was miraculously rescued by an Afghan camel driver who nursed him back to health. Three years later with a surveyor called Harding, he relocated the reef, took the bearings but failed to peg the claim. Unfortunately, their watches were incorrect, and this made their bearings incorrect. Sadly, Harding died just before Lasseter left for America in 1903.

Testing the Story

Lasseter would have only been 17 when he ‘discovered’ his reef in the deserts of Central Australia. This is highly unlikely, and the false ruby strike was in 1887, not 1897! If Harding was a surveyor, he would not have made the error of the watches having the incorrect time or failing to peg the claim. Harding was in fact not a surveyor but a cattle thief (in Australian slang a ‘cattle duffer’). His ‘death’ was convenient. In the 1930-31 expedition Lasseter was unable to discover his reef and had a major falling out with the leader and some members of the expedition. He left them and died a lonely death in the desert.

Postnote:

It is highly unlikely, given the character of Harold Lasseter himself that the reef exists. Despite this, expeditions continue to be mounted. Never let the truth get in the way of a good story, especially about hidden treasure. In an ironic twist in Alice Springs, there is a casino and hotel called Lasseter’s!

Are there any management lessons with the story of Lasseter’s lost gold reef?

Here are three worth considering:

  1. Be aware of charlatans! We all meet them in our personal life and in business. It would appear that Lasseter was indeed a con man or a delusional liar. Despite this, people were willing to believe his story of his fabulous gold reef. Simple but hard questions would have revealed the implausibility of his story. How often are we as managers do we believe what we want to believe?
  2. Do your homework. The most basic research would have highlighted that Lasseter’s story was fantasy. Checking the dates of when he ‘discovered’ his reef would have revealed the implausibility of his story
  3. Be Aware of Myths that become Reality. A lie repeated enough becomes reality. Once again check the facts and test the logic.

Can you think of any other lessons from the myth of Lasseter’s Reef?

@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.

#thenetworkofconsultingprofessionals

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.

#thenetworkofconsultingprofessionals

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.

#thenetworkofconsultingprofessionals

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?