archive: August, 2009

The Courage of a New Perspective

Monday, August 31st, 2009

MOON_2

I found a article from Time Magazine, dated July 25, 1969 titled, ESSAY: ON COURAGE IN THE LUNAR AGE.  The opening paragraph says:

“ “COURAGE leads starward; fear toward death”, wrote Seneca.  Man needs courage simply to live in spite of knowing that he must die.  He needs it to live richly – to take risks and thereby define himself.  There are many kinds of courage, moral and physical, but all involve a struggle against heavy odds.”

The article goes on to link courage with collaboration in a way that exemplifies what the business community needs more than anything . . . the courage to create a new trajectory in our economic universe.

It is time to come together and show the world that we are more than the fraud that we see on the front page of the newspapers; we are more than the greed that somehow mesmerized our hearts; and we are still that same nation that took a President’s request to heart 5 short decades ago and found the courage to send 3 brave men to the moon.  I was only 1 at the time, but in the last several weeks I can feel the energy that was here 40 years ago.  Tears fill my eyes when I hear recordings of the astronauts, with their humbled excitement, share their journey with a young nation that has more strength and more perseverance than we sometimes realize.  Given the events of the past 2 years, I can think of no better time to have a celebration and a reminder of what united us 40 years ago.

Martin Luther King, Jr., a man who had the extraordinary courage to fight hate with love.  He would have been proud of Apollo 11 and certainly proud the day Barack Obama was elected President.  Let’s make him proud again and show him that we can come out of this economic disaster better than we went in.  Our values will be stronger, our convictions wiser, and our kindness more evident.  I was born on the day that Martin Luther King Jr. was assassinated, and that fact has created a special connection for me to his courage and this country, just as those born on July 20, 1969 when Apollo 11 landed, and those on September 11th, 2001 will carry a special connection.

Courage comes when we realize that our fears are typically not very helpful, and in fact, most of the time they are quite hurtful.  Perhaps they were a bit more useful for our prehistoric ancestors hunting on the open grassland, but not so much for a 21st century executive trying to connect with his employees. Generally, people find that they are more afraid of the prospect of something bad happening than they would be if it actually happened.  That’s because people are more resilient than they believe and will adapt when necessary.  Unquestioned fear prevents us from realizing our full potential by paralyzing our actions.  Courage is the ability to move beyond fear and into action.  Success is always born from action and never from inaction or reaction.

Tom Nicholas, a Harvard Professor, recently wrote an article for the McKinsey Quarterly titled INNOVATION LESSONS FROM THE 1930’s.  He reports that during the Great Depression, those firms that continued with research and development projects and made sizable investments in their businesses were several years ahead of the competition that decided to wait until the economy had a better outlook.  In 1930 DuPont recorded the discovery of neoprene.  They increased their development spending despite the fact that sales were decreasing.  Polaroid, Hewlett-Packard, and RCA are also examples of innovators during times of economic unrest.

The leaders of DuPont, Hewlett-Packard, and RCA all had the courage to look beyond the fear of the current economy and press forward with what they believed in.  It takes real leadership skills to go in the direction opposite of the herd.  And I’m afraid that we have largely become a community of herd followers.  There is far less courage and creativity in the workplace than we have the potential to produce.

The world needs more leaders that have the courage to tap into the wealth of creativity that is available within their organizations.  Employees are not being utilized to their potential.  Brilliant ideas remain hidden inside many organizations. We need to find the courage to look at business with a new perspective.

Do you have the courage to tap the hidden potential and brilliant ideas that lie within your firm?  Do you have the courage to execute that plan that you know in your gut will be a home run, but is just so far out in left field?  Do you have the courage to be the leader that you dream of being?  Do you have the courage to consistently push the boundaries and committing to a life of surprise and success?  I know you do.

When I am feeling a little low on courage, I often think of people like Nelson Mandela and Viktor Frankl, who epitomize what it means to be courageous in the face of unfathomable circumstances.  When the outside world and external forces are going well, it’s somehow easier for us to be courageous.  When the outside world is looking dismal, it may be more difficult, but the payoff will be far greater.

Hemmingway once defined courage as “grace under pressure”. I like that!

Posted in Courage, business, economy, management | No Comments »

Where Did the Trust Go?

Monday, August 24th, 2009

trust

I was the COO of an international corporate finance company when the mayhem in the financial world let loose in the fall of 2008.   It didn’t matter how long you had done business with a counterparty, or how much money they had made from you in the past.  This was war; relationships became meaningless, and trust was suddenly a word that no one could recall.  Corporations were insisting their employees go for the jugular and the bloodiest grab for what cash remained in the system ensued.  The only thing that matter was cash in the bank.  People thought they had long-term relationships and trusting partners, but they were mistaken.  I saw some of the saddest displays of human behavior that I have ever witnessed in my 20-year career.  I actually heard one CEO claim that they would rape and pillage their way to profitability.

Relationships are mere transactions, customers are markets, and employees a necessary evil.  Somewhere along the way many corporations have turned what could be collaborative environments of business and economic progress into a civilized war on the very groups that hold the keys to their success.  The sad part is, they don’t even realize it.  At the end of the day, it all boils down to trust.  And trust is not something that is heavily taught in business school.

In answer to the question, “Where did the trust go?”  I don’t think it went anywhere.  Big business, in the US anyway, never had it.  From the first moving assembly line at Ford in 1913, people were disgusted with jobs that required no skill and had zero autonomy.  People were basically asked to be robots for 9 hours a day and like it.  At one point Ford had to offer a 100% increase in pay plus reduce the workday to 8 hours just to reduce the 380% turnover to a manageable level.  Such working conditions spawned a massive increase in unions and other organizations designed to protect individuals from corporations and other establishments of power.1 People felt helpless as individuals.

Here we are, a century later, and big business sentiment really hasn’t changed all that much.  There is still very little trust rattling around in the system.  People, however, have changed dramatically.  We are much more individualistic and very much desire autonomy and a chance to add value in our jobs, to our lives, and even the world.  If big business doesn’t figure out how to change this dynamic soon, they are going to lose their best people to smaller organizations that are much more likely to provide an environment that suits their needs and desires.  Besides, the illusion of security working for a large firm has been shattered with the tens of thousands of recent layoffs.  Soon there will be choices in the job market.

The Financial Times recently reported (FAITH IN BUSINESS RETURNS) an annual survey by Edelman (communication consultancy) indicates that 52% of respondents said they trusted business, which was substantially up from 46% reported 6 months earlier in January 2009.  Personally, I find 52% alarming even if it is only 2 points below the 2008 result.  Another indication that we have become quite numb to the lack of trust that permeates business today.  The article went on to say the survey indicates a movement away from a shareholder society and toward a stakeholder society, putting shareholders behind customers and employees in a list of importance.  In conclusion, the article indicates that a Edelman spokesperson said the survey indicates that, “people ascribe a higher level of trust to those actions that appear to be against the norm and game-changing.”

Think of what companies can do if they create an environment of trust.  With trust come passion, creativity, loyalty, and innovation.  All are necessary ingredients to create a superstar company in today’s environment.  It’s all about the connection to customers, employees, and communities.

Most hard-core, command and control type managers assume that if you trust people to run their own schedules that productivity will immediately drop.  The opposite is actually true.  Best Buy, who employs ROWE (Results Only Work Environment) is a great example.  After evoking this new radical approach in their corporate office, where people can leave to catch a mid-day movie if they please, found that the productivity of teams actually went up.  They simply trust employees to run their own schedules and get the work done.  The two people who drove the idea from the inside have since written a book and provide consulting for other firms looking for a change.

When you are authentic, respectful and trusting, people will walk through walls for you.  Billions of dollars in lost productivity and half-hearted work products churn through companies every day because employees don’t feel emotionally connected and aren’t assuming full responsibility for the success or failure of their employers.

If we are moving toward business models that places greater value and focus on trust (and I certainly hope that we are), then it makes sense that committing resources toward gaining the trust of employees and customers is money/time well spent.  These are the seeds that will create the competitive advantage of the future.

What kind of messages do you think your employees portray to your customers (knowingly and unknowingly) if they feel that the company is not trusting or trustworthy?  And imagine what will be communicated when they know that they work for one of the most trusting and caring organizations in existence.

How to promote trust in your organization?

Authenticity is the number one thing a leader can portray to gain trust. Most people have generally good BS meters and know when someone is not authentic.  Most leaders want to be authentic they just aren’t confident enough to do it.  Put down the script and speak from your heart.  I promise it will work.

Trust people to do things their own way. Be laser focused on where your company is headed, and make sure every employee is on board, but be open and flexible about how you get there.  When employees are allowed to figure things out for themselves, they take ownership and responsibility, which translates to higher productivity.  You will be blown away by their creativity.  Tell them exactly what to do every step of the way and they will immediately disengage, wondering why they are there if they can’t add any value.

Treat people as if they are already knocking it out the park. You will be absolutely amazed when you try this.  For me, this was the best trick I ever playing on myself, and it really accelerated my leadership abilities.  It allowed me to see the greatness in everyone and help others find it in themselves and start using it.

The days of better, faster, cheaper are over.  The days of trust, collaboration, and connection are here to stay.  The world will be a much better place.  And a hell of a lot more fun . . .

1 THE SUPPORT ECONOMY, Shoshana Zuboff and James Maxmin, 2002, Penguin Books

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Designer Coffee Anyone?

Monday, August 17th, 2009

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Business can learn a lot from the design world.  First and foremost, if business leaders simply started their day like a designer and asked, “What do I want to create today”, we might be a little further down the path of adapting businesses to be more in line with society today as opposed to society 150 years ago.  The reality is that much of modern business management theory is descendant of practices over a century old and better suited for a society unveiling the benefits of mass production.  They do little to inspire leaders and workers of today’s 2.0 world of interactive innovations, and service connectivity.

I recently read an article in the WSJ titled, Latest Starbucks Buzzword: ‘Lean’ Japanese Techniques. I have to say I cringed a bit after reading what the Vice President of Lean Thinking has been up to with a stopwatch and Mr. Potato Head.  The article reminds us that Lean Manufacturing got its start at Toyota, a car manufacturer.  Again, it all relates to a bygone era.  And I’m not alone.  The article reports that, “some baristas fear the drive will turn them into coffee-making automatons and take away some of the things that made the chain different.”

Designers focus on the experience, and certainly the Starbucks I know, love and have frequented in at least 6 different countries is legendary in introducing the US to how absolutely indulgent a coffee experience could be.  Something our European brethren figured out long ago.  Perhaps a better place to start might be, “How can we update the experience to provide better value for our customers?”, or better yet, ask the customers what would get them back in the door.  Maybe half-price Wednesdays, a free extra shot, more coupons . . . anything but the dreaded stopwatch.   At the end of the day, a cup of Joe won’t really break the bank, but if it smacks of a fast food experience I probably won’t bother now or when the economy improves.

Dutch Brother’s Coffee, who had the courage to start-up in the Pacific Northwest of all places, certainly proved that you can provide a great coffee experience on a budget.  Dutch Brothers is a drive-thru coffee shop, nothing fancy, with 147 stores to date.  They live by the Optimist’s Creed dubbed the Dutch Creed, which is basically a poem of well-being. Caring relationships with coffee growers and employees shines directly through to the customers.  In a period when Starbucks is closing locations, Dutch Brothers opened 21 locations in 2008 and is set to open another 20 in 2009.  And they do with the tradition of all drinks 100% free for the entire first day that a new store is open. People line up hours and sometimes even a day in advance when a new location is opening.  They are 100% focused on the experience their customers have, making sure no one leaves without a good laugh or a at least a smile on their face.  Again, the focus is on happy partners, happy employees, and happy customers.  Good old fashioned authentic caring for one another and always looking for the upside has taken this company on a wild journey.  The two brothers were simply looking for a new way to survive when their family dairy farm was hit with hard times.

Much of business can learn from designers.  From viewing everything as a creation to making sure that rules and tradition don’t get in the way of good ideas.  Younger generations are not only looking for a paycheck, but an experience that they can relate to and provides some kind of meaning to the life they are trying to create.  They are not afraid to bring emotion and feeling into anything.  Traditional business, says little to the experience of the employee or the experience of the customer, and certainly anything squishy like feelings is totally taboo.  This is the way business and the corporate world is heading and those that wake up to it first and make an effort to bring creativity, passion, trust, and collaboration back into the workforce will win.

Posted in business, creativity | 1 Comment »

Mississippi Wellness

Wednesday, August 12th, 2009

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Until now, my business trips have taken me to London, Tokyo, New York, Los Angeles, Hong Kong, Seoul, Frankfurt, Munich, and Paris, the glitzy global seats of corporate power.  Last week I found myself driving to rural Greenville, Mississippi to meet a group of folks from the Delta Citizens Alliance.   On the 9-hour drive, when I was wondering what in the world I was doing, I reminded myself that this is the time for me to give back.  It’s time for me to apply what I have learned in my 20 years in business and lend a hand.  What I found is that I had a lot to learn from the most courageous group of people I ever had the fortune of meeting.  More powerful than any group of business leaders I have ever met, simply because they know they can make a difference in the world.

This was a group of very busy people.  They run non-profit organizations that target the youth, they are consultants to non-profits writing grants and getting through the red tape, sociology professors, and community activists.  These are the movers and shakers of the Mississippi Delta.  Some had high school diplomas and others had PhD’s.  We were white, black, and brown.   We were all the same, in our hearts, and we were all there to ask a hard question that few are willing to ask.

No one was afraid to ask the question, and everyone was ready to receive the answer, no matter where it pointed.  No one squirmed in their seat or tried to deflect.  No one was trying to be a victim and point the finger elsewhere.  Everyone was ready to take full responsibility, even when the answer pointed back at all of us.

The question we were there to explore was, “Why, after all the money spent and all the programs implemented, is the Mississippi Delta still so void of hope and prosperity?”  It takes a lot of courage sometimes just to ask the right question.  This group was also determined to find the right answer and get on with doing something about it.

They all share the dream of seeing the Delta turnaround, and become an shining example of what can be achieved when people are willing to love and care for themselves and others.  They can visualize their hometowns full of healthy, beautiful and happy kids playing on the streets without drug dealers on the corners.  They can see the houses and yards cared for and manicured and neighbors greeting each other on the sidewalks.  They can see the old abandoned school down the road revitalized and brimming with squirming, learning children once again.  They can see young adults in local colleges and new shops and businesses opening up every year.  They have a tremendous dream!

We asked why the community colleges weren’t full when scholarships and transportation were readily available.  We asked if towns were really ready to work on race relations when turf wars prevented people from getting in the room together to just start a discussion. What was amazing, and a real testament to the validity of the concepts we were discussing, was how quickly everyone came to the same answer.  They may have said it in a slightly different way, but the answers were all the same, and we all knew without a doubt that they were true.

The Center for Sustainable Change, an organization out of Northern California that has had tremendous success facilitating the turnaround of some of the most hopeless communities in the US, was there to share the 3 Principles of Psychology and how they promote positive change.  Three simple principles that help individuals form an understanding of how we create our own realities (good or bad) through our own thoughts.  External circumstances are simply challenges to address and “things” in life to deal with, but they do not create our mental reality.  We create our reality in our own heads, one thought at a time.  Once you give yourself permission to question your thoughts and choose to dismiss the ones that are not helpful to achieving your goals, the possibilities become endless.

Our collective answer to the hard questions was this: programs unfurled and money spent weren’t working because (1) the people they were designed to help had little or no say in what they truly needed, so community residents had no investment in the outcome, and (2) until we take time to focus on the innate well-being and wisdom that exists in all of us, it will remain difficult for people to see a different reality and work together for change in the Delta.  These are simple truths, but according to this group of warriors, they hold the key to success in the Delta.

The Delta Citizens Alliance in conjunction with the Center for Sustainable Change have established a steering committee (of which I am honored to be a member) to start conversations with the communities of the Mississippi Delta about innate mental health and the 3 principles.  With a renewed sense of hope, positivity, creativity and well-being, these communities will no-doubt create their own successes.

If you belong to a business organization that is jumping onto the band-wagon of corporate social responsibility, I would encourage you to consider supporting the work that is happening in the Delta.  Communities and businesses can accomplish twice as much if they work together. And when the status-quo “thought box” is opened and “out of the box” thinking jumps out, the possibilities for win-win collaborations are boundless.

Posted in personal, social, success | No Comments »

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