Simple management

Words: 425
Reading Time: 1 min. 25 sec.s

What actions yield the best financial results when dealing with an economic downturn?

That’s something we would all like to know – always assuming that an economic downturn calls for actions different to those at any other time.

Bruce Tulgan of RainmakerThinking, Inc.® reports finding that cost cutting, innovation and increased supervision were the three strategies that yielded the strongest financial results in 2009.

Well, that’s wonderful! If that’s all we have to do to get great financial results then all our problems are solved. Or are they?

Bruce’s results are drawn from a survey of more than 1,000 managers selected from participants in RainmakerThinking, Inc.’s ® intensive two-day management seminars.

Managers that implemented these actions were found to be the most likely to report that their bottom line financial results (at the level closest to the manager’s control) in 2009 were “good,” “very good,” “better than expected,” or “much better than expected.”

There seems to be a number of weaknesses here:
1) The survey was only of managers, not of workers or financial analysts;
2) All those managers had been trained by RainmakerThinking, Inc.®;
3) Other actions taken by managers who were not participants in RainmakerThinking were not examined;
4) The assessments of financial results were entirely subjective; none were quantified;
5) Corporate benefits or detriments other than financial ones were not looked at;
6) The organization conducting the survey had a direct interest in its outcome.

Besides which, cost cutting and innovation should be high priorities in any company, irrespective of the state of the economy. Had these managers helped create the crisis in their companies by their lack of effectiveness when times were better?

And managers reported that it was their supervision that made a difference – not actions and dedication by a neglected workforce concerned about continued employment that would have happened anyway, without the managers.

No surprises there then. It’s the usual error – we always think we have had a disproportionate effect (hubris) when it’s everybody else that has made the major difference. The higher the individual is in the organization or social grouping, the more marked is this effect as a general rule.

Business suggestions:
1) Start from a position of scepticism;
2) Beware of too much simplification;
3) Ask, “Who says?”;
4) How much interest has the researcher in the outcome of the research;
5) Check for what’s missing;
6) What else could have caused this?
7) Look for a control group comparison;
8) Everything should be as simple as possible, but not simpler (Einstein);
9) Nobody has all the answers;

10) Bosses need the workers; the reverse is not always true.

Inconvenient dialogues

Words: 421
Reading Time: 1 minute 24 seconds

An appointment is an arrangement to meet at a specific time and place.

Now, to my way of thinking, that involves two or more people agreeing to a date, a time and a rendezvous. However, certain parts of our wonderful NHS continue to send out letters claiming that an appointment has been made without first talking with the person involved.

They then post large and irritating notices in their clinics and waiting rooms that announce how many appointments patients have failed to keep in the last month, or the last year.

There is no breakdown detailing how many such broken “appointments” were unilaterally decreed by the NHS.

If I was running a restaurant and sent you an “appointment” for coffee and croissants at 8.30 a.m. on the 25th without your agreement I could hardly blame you if you decided not to come.

Why does the NHS think it is so different?

Perhaps the NHS believes our health would naturally be our primary concern. Indeed, in a recent poll it was placed first, ahead of wealth and happiness. However, on a day-to-day basis it often ranks lower than that.

If someone close to us is unwell we may postpone seeking treatment for a minor ailment of our own. Some people put off seeing the doctor, fearing the possible diagnosis. Others struggle into work despite being ill. So, clearly, health does not rank No.1 in all circumstances.

Those “broken” appointments may have been sent to someone who is out of the country, unable to read, otherwise incapacitated, or dead. How would the NHS know without trying to speak with the person in order to agree – rather than decree – an appointment?

Having a dialogue before setting a date and time would probably cost less in time and money than the all the subsequent rescheduling and the unused resources resulting from non-attendance.

Of course, the NHS is not alone in taking a cavalier and high-handed attitude. Too often businesses blame unreasonable and uncooperative prospects and clients instead of looking for the root cause of discrimination and displeasure. Too often the approach is ‘don’t bother me with the facts, I prefer my prejudices.’

Everybody loses, but it doesn’t have to be that way.

Business suggestions
1) Talk to your prospects and your clients;
2) Don’t blame the customer when things go wrong;
3) Uncover the facts instead of making assumptions;
4) Seek feedback from those who are not your customers as well as folks who are;
5) Ask ‘how do I?’ rather than ‘why?’ – it’s forward looking and much more productive.

Change and Uncertainty

It is a common misconception that people fear change. On the contrary, people are change.

People change all the time – from the colour of their hair to the clothes they wear; from the book they are reading to the job they are doing. Even the cells in our bodies change – our blood is completely changed every 30 days.

It is not change that people fear, it is the uncertainty associated with change.

Faced with uncertainty your possible responses go beyond the simple alternatives of flight or fight. Psychologists now also recognise freeze (extreme vigilance while immobile), fright (“playing dead”) and faint. I have observed there’s a fifth – flap – and a sixth – flatulence.

Flap is extremely common in the business world and just as evident in Government. Earlier writers characterised it as “seagull management” based on the tendency of senior personnel to fly in, foul everything up and fly off again – leaving the troops on the ground to clear up the resultant mess as best they can.

Flatulence refers to the long-winded, bombastic, pompous and pretentious displays evinced most often by Ministers in reaction to a crisis. This adds greatly to the public spectacle, but does little to seriously address the root of any problem.

Think of Gordon Brown’s ‘saving the world’ as being equivalent to a local moggie making itself more impressive and threatening by raising its fur and arching its back, thus increasing its apparent size and power.

Mistakenly assigning your feelings of concern or resistance about change to simple fear could cause you to miss more meaningful information – like:
i) your unhappiness with the way the change is happening;
ii) your lack of concrete information about the way the change will affect you; or
iii) your dissatisfaction with a lack of genuine opportunities for your voice to be heard in the change process.

When contemplating the changes you face it’s worth recalling that:

* Change is part of everyday life; it’s part of the endless cycle of birth, growth and demise. You are part of that process, so make the most of it.

* You are not alone. Others will have been in the same boat in the past, some will be in the self-same boat you are and others will join the boat later. Share the problems and form a crew.

* When you know what piece of meaningful information is missing, you’ll know what to do.

* One person’s threat is another person’s opportunity. To quote an old adage – when life serves you lemons, make lemonade.

* The inspiration to live a life you’ll love will carry you long after the adrenaline burst from fearing a life you’ll hate has burned out.

We are often admonished not to be fearful; we should “pull ourselves together” we shouldn’t “be so negative” even though worry, fear, concern and trepidation are really useful signals that something may be happening and we need to pay attention.

If we harbour genuine fears then that is how we feel and that is what we have to work with. “Shoulds” and “shouldn’ts” are simply distractions. Going past the fear itself to the situation that evokes that feeling and finding which elements are important to us there is the best way to capture the value in fear’s early warning system.

That’s putting fear to its best possible use. To do the opposite – becoming exclusively focused on our own preservation, rather than notice what is going on – is to devalue the message.

By way of illustration, there’s a simple story to remind us about the value of focus.

A small plane is flying high over the Scottish mountains, when it develops engine trouble. There are five people on board: the pilot, Steve Redgrave, Gordon Brown, the Dali Lama, and a new-age hippie. The cockpit door opens, and the pilot bursts into the compartment.

"People," he begins, "I have good news and bad news. The bad news is that we're about to crash. The good news is that there are four parachutes, and I have one of them!" With that, the pilot throws open the door and jumps from the plane.

Steve Redgrave is on his feet as quick as flash. "People," he says, "I am the world's greatest athlete. The world needs great athletes. I think the world's greatest athlete should have a parachute!" With these words, he grabs one of the remaining parachutes, and hurtles through the door and into the night.

Gordon Brown rises and says, "People, I am the world's smartest and most serious politician. This is a serious situation and the world needs a smart politician like me. I think the world's smartest politician should have a parachute, too." He grabs a pack, and out he jumps.

The Dali Lama and the hippie look at one another. Finally, the Dali Lama speaks.

"Young lady," he says, "I have lived a satisfying life and have known the bliss of True Enlightenment. You have your life ahead of you; you take a parachute, and I will go down with the plane."

As cool as a cucumber, the hippie smiles slowly and says, "Hey, don't worry, dude. The world's smartest politician just jumped out wearing my rucksack."

The magic is not in the mushrooms, it’s in paying attention to what is going on around you.

"Fears are educated into us and can, if we wish, be educated out." – Karl A. Menninger.