Would you believe?

Do you thrive on order or disorder? Into Ccontrol or Kaos chaos?

Are you a connect-the-dots kind of manager, taking comfort in plans and processes, trusting in systems that provide structure to move your organization forward step-by-step?

Or do you prefer a more freewheeling environment, believing that adaptability and improvisation is a litmus test that allows one's mettle to come shining through.

It's probably not a question that business owners ponder very often, but it came up in conversation a number of times this week, speaking with prospective TAB Board members about their approaches to managing their companies.

Some of those I met with professed to love the challenge of dealing with constant change, navigating a stormy environment and choosing the correct tack to keep forward progress going.  Others, well, not so much. They preferred a more grounded and gradual approach.

I'm sure you know successful executives in both camps. Today's entrepreneurial zeitgeist certainly reflects more of the swashbuckling, freewheeling, disruptive business type. And, while the it may be a more sexy story, would you believe that this approach yields worse outcomes than the old-school methodical, follow-the-plan approach?


As Jim Collins illustrated in his book Great By Choice, a discipline he calls "20-Mile March" behavior is a leadership trait that gives organizations "the ability to impose order upon disorder, consistency amid swirling controversy" but only when it is combined with a near obsessive focus on making continued progress against the objective.

According to Collins:

"Some people believe that a world characterized by radical change and disruptive forces no longer favors those who engage in consistent 20-Mile Marching. Yet the great irony is that when we examined just this type of out-of-control, fast-paced environment, we found that every (successful) company -- unlike their less-successful peers -- exemplified the 20-Mile March principle during the era we studied."

Collins relays the expeditions of Roald Amundsen and Robert Scott, two well-matched teams racing for the South Pole.

"For one team, it would be a race to victory and a safe return home. For the second team, it would be a devastating defeat, reaching the Pole only to find the wind-whipped flags of their rivals planted 34 days earlier, followed by a race for their lives -- a race that they lost in the end.... One leader led his team to victory and safety. The other led his team to defeat and death....What separated these two men? Why did one achieve spectacular success in such an extreme set of conditions, while the other failed even to survive?"

Find Collins' answer here.

The difference between success and failure is often small, with progress sometimes barely measurable and perceptible only in hindsight. Most often it is the result of a series of incremental actions and decisions rather than any single event.  Having a well-drawn plan, combined with the temperament and leadership skills to implement it consistently, even in the face of adversity, gives your organization a demonstrable edge over more flamboyant but less dependable competition.

Missing by that much may make for comedic gold, but it is often not so amusing in life or in business.  Believe it.

Crossroads

In last week's post, I wrote:  "In the weeks ahead, I'll outline ...  an "Owner's Manual" for 21st century small business leaders."

That wasn't entirely accurate.  What's follows over the next few weeks is not a manual, in the truest sense of the word:

Manual [ˈmænjʊəl] adj 
[via Old French from Latin manuālis, from manus hand]

1. of or relating to a hand or hands

2. operated or done by hand manual controls

3. physical, as opposed to mental or mechanical manual labour

4. by human labor rather than automatic or computer-aided means

5. of, relating to, or resembling a manual

n

1. a book, esp of instructions or information a car manual

2. (Music, other) Music one of the keyboards played by hand on an organ

3. (Military) Military the prescribed drill with small arms

Collins English Dictionary – Complete and Unabridged © HarperCollins

The problem with manuals is that they are so, well, hands-on, in a more or less literal sense, AND they are very basic (find key, put it in ignition, turn on car...) Manuals tell, rather than teach.

What I have found from working with business owners, CEOs and organizational leaders for over 30 years is that the best seek not a how-to, but a map, a compass, a guide to help them navigate.  They are constantly trolling for new experience and expertise and they want guidance on better managing themselves and their businesses.

Born to run?

One of the high points of my former life was making a presentation to the Board of Directors of an iconic US company (a revered household name that will remain nameless until you buy me a drink.)  The company and its CEO had gotten into hot water with investors, and we were briefing the Board on recommended strategies and a series of specific actions to rebuild trust.

The Board consisted of a proverbial pantheon of international business leaders.  Following our presentation, we had a lively discussion of our recommended strategies, as you would expect of this group, one of whom was the CEO of a giant global engineering company.  He lasered in on the tactics, specifically how my CEO client would oversee implementation.

During the back-and-forth on that topic -- my client stated that he would approve the final plan and leave implementation to his staff --  it became clear that the engineer operated his company differently,  through tight, personal command-and-control, down to such minutia as final approval of all press releases.  He confessed as much.

Astonished, a fellow Board member asked, "G----, how do you find the time to lead your company if you're doing all of this work?"  It was a extraordinary moment.  (This chief executive was later dismissed by his Board.)

Out of the bowl*

Congratulations.

Your business is finally back on a growth track, after several years of struggle.  Sales are not only improving, they are accelerating.  Some hiccups month-to-month, but the trend line is steepening and extending.

Your increased profits have allowed you to finally move ahead and expand the range of products and services you offer.  Your customers are reacting happily, buying more often and spending more per transaction.  It's a virtuous circle.

Employees are happy.  They are getting profit sharing bonuses and those bonuses are increasing as the business performs.  You've installed the systems and processes to give them the autonomy to do their jobs without being micromanaged.  You trust their judgment -- you have to, because you're now so large that you couldn't do their jobs even if you wanted to.  In fact, there's several people you didn't hire yourself; your managers did.

Go Team!

In last week's post, I noted that the phrase "An Army of One" is an oxymoron for small business owners. As it turns out, the Army also apparently felt that it was antithetical to the ethos of teamwork, and phased the phrase out.

Ah, teamwork...who doesn't want a "team player?"  Businesses spend millions, if not billions, of dollars in pursuit of talented teammates.

• We advertise for them in our recruitment ads (who wants to hire a boat-rocker?)
• We read books about building good teams (millions of them)
• We listen to motivational speeches by successful sports team coaches.

We spend much time and energy thinking about teams.  But it also seems that a similar amount of time is spent moaning about our recruits' lack of individual initiative and how to motivate them.  How do we square this circle?

We, the leaders

Is business ethics an oxymoron such as "open secret,"act naturally" or "exact estimate?" Sure seems that way as the list of misdeeds grows.

The Libor scandal continues to gestate like that deadly virus from The Andromeda Strain.

(Even if you can't differentiate Libor from a Labradoodle, you should be paying attention as it affects pretty much everything in the world of commerce.)

Other recent transgressions include faked CEO resumes, bribery, and outright theft, to name a few.

While businesspeople acting badly is certainly not the norm, the lack of business ethics is not a new subject. The portrayal of businessmen (and women) as murderers, conspirators and villains is one that apparently never grows old.  The list of business-related morality-tale movies is long and notorious illustrious.

None of the business owners I coach or consult with are sociopaths, fortunately, and I think it is safe to say that more business owners are focused on doing good, as opposed to doing well. They're more likely to be Rotarians than recidivists.

Main Street, with a bullet

The phrase "with a bullet" derives from the music industry.  It comes from Billboard magazine, the recording industry's bible in the age before digital downloads, iPods, piracy and business model implosion.  The term means a rapid ascension on a list...in the case of music, "climbing the charts."

"Small business" is number two with a bullet -- up 42 points --  according to Gallup's new study on Americans' confidence in major institutions.  Small business trails only the military in the level of trust the US citizenry places in it, followed by the police and religion.  (Interesting cocktail chatter the members of those groups would share.)

Big business, HMOs and Congress top the he bottom of the list.  I'm sure you're shocked, shocked.

Is it safe?

Growth is always a hot topic at the monthly TAB meetings I facilitate:  strategies, plans, tactics, obstacles, wins, losses, etc.

Most of our businesses are doing well, but some have seen their top lines flatten and a very few have experienced sales declines.

Bottom line-wise, our business owners have seen their operating costs escalate.  The cost of goods, taxes, health care, energy, professional services have all been rising. Most have been very good at maintaining their margins by controlling their variable expenses.

But nipping and tucking only gets you so far, as we are finding out in the debate over growth versus austerity at the national and international level.  You can't cut your way to growth over the long term.

Beneath the waterline

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As you may have heard if you weren't stranded on an ice floe, the supposedly unsinkable Titanic went down in the North Atlantic exactly 100 years ago this weekend.

It remains an epochal event; one of the greatest catastrophes of the 20^th century.  At the time, it was “unthinkable,” "impossible."  A black swan. 

Until the details emerged.  With the benefit of hindsight, it all seemed inevitable:  corners cut, disbelief suspended, expert opinions ignored.  This is partly why Titanic has transcended the literal and become metaphor for commercial hubris, institutional blindness and human fallibility (and more, to some.) 

Failures and other success stories

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It took Thomas Edison ten thousand tries to perfect the light bulb.  It’s a, if not the, classic story of overcoming failure through perseverance.

But the reality is that the founder of GE had resources unavailable to most private business owners today.  It begs the question:  how many failures can you afford before you get it right?  Certainly, it's far less than old Tom.

Failures are part of business, and life.  If we are smart, we learn from them. If we are not, we are soon out of business, and sometimes out of life. 

But let's not dwell on the negative.   There are plenty of motivational and instructional quotes on the value of trying but failing, one of my favorites being "A man's errors are the portals of discovery."

If failures are inevitable, can we minimize their occurrence and impact on our businesses and our lives?  How do we turn them into teachable moments, into Joyce's "portals of discovery?"

Ready, Fire...

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I played a lot of sports when I was growing up.  Baseball, hockey, football, lacrosse.  I was a decent enough baseball player, but at 5-foot-6, I harbored no illusions of playing at any high level of competition.   (Especially after watching "failed" major league pitchers up close and personal during one trip to Spring Training.)  In lacrosse, I was good enough to play at the Division I collegiate level, but not as a starter.  

I loved these sports, practiced diligently and consistently, and worked with my coaches to get better.  But at a certain point, I did not get any better:  I reached the peak of my abilities.  My potential was exhausted.  So, I focused my abilities and competitive drive in other, more productive areas.  I fired myself, so to speak.  So, it goes.

Several of my TAB members have been struggling with "people issues" of late.   Hiring is one of the three challenges (the others being sales and marketing) that form the "trinity" of core issues for most small business owners. 

Making the wrong hire is incredibly costly, for businesses small and large.  We're talking tens of thousands of dollars.  I won't list the studies and commentary here, but type "cost of a bad hire" into Google and you'll get 116 million results.

Why is hiring people thing so hard?  For one, it's "because we hire people for what they know, but fire them for who they are," according to one TAB member.