4th Quarter – What’s Is The Score?

You rush from the family event on Sunday afternoon in hopes of catching the 4^th quarter. A quick glimpse of the score tells you everything:

• Up by 30: Instant satisfaction
• Tied: Get ready for the battle
• Down by 30: Take a knee

October is here (4^th Quarter)! What is the scoreboard saying about your 2016 Strategic Plan?

• Up by 30:
  • Get while the getting is good – run up the score!
  • Let everybody play and enjoy the process
  • Start planning the end of the year bonuses
• Tied
  • Clarify and reinforce the goal(s) one more time
  • Focus – Focus – Focus: Every play counts
  • Hold it loosely and adjust as needed
• Down By 30
  • Call timeout
  • Regroup with a new realistic end of the year target
  • Go make a first down and regain some positive momentum

What gets measured gets done. If you don’t have a simple method of keeping score for your critical initiatives, you might want to consider setting one up as a 4^th quarter priority.

The CEO's Challenge of Staying Relevant in an Accelerated World

And what to do about it

Almost all CEOs face the challenge of maintaining relevancy in the markets they serve. More specifically, what keeps many CEO’s awake at night is the realization that something is materially changing in their company, in their markets, or within what was once a marquee product line. Yet, the rank and file just can’t see it. And if they do see it, they aren’t responding fast enough. Maybe our CEO can’t fully understand it. But their instincts tell them that it’s more than a seasonal blip; it’s something systemic that could rock the company off its foundation. In many instances, the problem boils down to the company not innovating fast enough. The world is seemingly passing it by. Relevancy is lost.

Often, a firm’s business model, that was created years ago, that once aligned departments so efficiently, continues to be focused on products or services that customers are becoming less enamored with. Yet the language in meetings is so focused on pushing product X or service Y and a downward dip in the sales projections has to mean that sales and marketing aren’t doing their jobs. While this might be true, the larger problem is, or will be, that something is happening in the market that is changing the game and the company is slow or reluctant to see it. And by the time it is seen, it’s often too late. Why is this?

Let’s travel back in time. When companies are formed, someone had a brilliant idea. They could see a gap based upon what existed at a point of time. In B2B markets, there was a problem to be solved and the entrepreneurial founder connected the dots that existed in that reality and created something that solved that problem like no other. Whether by happenstance or creative experimentation a business model was discovered that connected the value proposition with customers and routes to market and it worked. Fast forward and the model works and the company is growing and becomes profitable. Professionals are hired to execute the model and policies and procedures are established to assure that it is executed as efficiently as possible. The great news in the short term is that employees earn their bonuses and the company is listed as one of the best places to work by local publications. Everything looks great. But there is a metamorphosis at work.

In most markets, things don’t stay static. The dots that you relied upon that defined your differentiated value proposition, your ideal customer, and your routes to market may change. Making it even more complicated, competitors, assuming you’re not a monopoly, have been attracted to the market and using their insight, creativity, and their own new clay to work with have added new dots, perhaps some violently colliding with your own. The market responds and if the cost of switching isn’t enormous, customers move on and buy from your competitor. Loyalty counts but it can only go so far. It may not even to be a feature-for-feature comparable product to yours but instead, introduces a whole new way of doing something that also addresses the problem you were out to solve. As a simple example, think of how pagers were used by sales people twenty plus years ago. Enter the cell phone followed by the smart phone with functions becoming increasingly integrated in a digital world. Or, just think about open source software and how quickly that has driven integrated functions (E.g. Machine Learning) and broadened accelerated innovation. Companies that fail to innovate, that is, challenge the ways that the dots are connected, or even introduce new dots (E.g. new technology) may find themselves in trouble, hence our CEO laying in bed at 2am staring at the ceiling thinking, “what is happening”!?! So given this, why can’t companies simply spend more time innovating? The answer is that it’s simply not that easy.

The reason why companies have such a difficult time innovating is because they’ve built a gigantic flywheel that has so much inertia around it, centered on a business model that has served them well. The organization by this stage has difficulty with ambiguity; time is precious after all and one needs to execute against the game clock. The quarterly cadence is well defined. The CFO is conditioned to post growth, and understands the levers to pull and buttons to push that have historically delivered results. The “business model” is broken into % of revenue by function and everything is synced. Keeping engineering spending at 14% of revenue and marketing and sales at 18% with the belief that everything should work, trickling down to operating profit of 15%. This again, was not the model when the company was incorporated and chances are, going forward, won’t be the model long-term. Aspects of the business model, other than the financial model are easily forgotten when the firm experiences some success. For example, does the all important core value proposition still resonate with today’s and tomorrow’s customers?

Market forces and technology shifts can introduce significant changes but it’s the innovative companies that create havoc with these changes on existing paradigms and views of reality. How did Amazon transform itself from being an online book reseller to supplying Cloud infrastructure and transforming the cost of computing? The answer is that Amazon reconnected the dots and even created new ones. It has been in a state of constant innovation while leveraging a business model that can scale in different directions while taking advantage of many of its core competencies. Building Amazon Web Services I would argue was not at all orthogonal to building out its huge merchandising business. The latter took advantage of the gains made in computing, including the cost model. Did Amazon anticipate when it was founded the advent of Cloud computing and what it could mean? I doubt it, but it sure capitalized on it.

Given these challenges, how do companies ensure that they aren’t the victims of their own early success? How do CEOs enable their companies to innovate? Here are some simple steps to consider:

1. The CEO needs to ensure that their vision for the company resonates and motivates people over time. This means that the CEO needs to constantly be asking is this vision still realistic and inspiring in today’s environment? The CEO needs to be a student of the industry, with a deep appreciation for the customers they serve and the problems they solve. I’ve seen too many instances where the CEO, with the best of intentions, lost touch with their customers. He stopped visiting customers and relied way too heavily on reports back from the field. They need to ensure that the vision still resonates with their customers and listen carefully for shifts and holes in the armor.

   I’ve worked closely with CEOs that dismissed the notion of visiting with customers because they totally underestimated how valuable these visits are to customers. I’d hear words like, “they really don’t want to hear what I have to say and they’re being well served by our sales team”. But that fact is that customers generally appreciate the visits, especially when the CEO comes with open ears- to hear both praise and take in sincere criticism. They are the great litmus tests for the firm’s vision, strategy and execution.

   I remember taking my CEO to Ebay years ago to visit an IT group. We were expecting two to three people at the meeting. There ended up being standing room only in the large conference room where we met and there was sincere interest in what he had to say. His vision was shared and still carried an emotional appeal with people. It had the reciprocal effect of energizing both of us. The takeaways were impactful and when the CEO returned to headquarters and shared his observations with the executive team you could hear a pin drop. The CEO is in a position to gain significant feedback from customers as to how the company is doing on the innovation front. Customers are not shy, when prompted, to share their perspective on your positioning in their market.

1. As part of the strategic planning process, it’s imperative to be very honest and realistic about the state of the market and competitors. Don’t be flippant or arrogant about new market entrants. Take a very careful and thoughtful survey of the landscape gaining as much as input on competitors and disruptions to historical workflows as you can. In the customer world, this often translates into users finding new ways to tackle today’s bottlenecks. What are these new bottlenecks or problems? Are new competitors around the corner that could easily do what we did plus extend their reach and address the new bottlenecks? Given these moves, what should our next steps be, how do we resource this, how do we excite and motivate the troops and hold them accountable for execution- backed by intrinsic and extrinsic reward systems.

1. Building an innovation subculture that is both comfortable with ambiguity and rewarded for experimentation when discovering new dots. While it’s impossible to change an entire culture back to start up mode, the CEO should think carefully about appointing a team of people, perhaps including themself, the freedom to experiment and think outside the box unencumbered by corporate structure (process, procedures, or strict time tables) and immediate profit generation. To think about customer problems, new technologies and ways of doing things. With data to back it up, present strategic possibilities with vetted ideas and make the calls about areas for new investment that will pay back in several years. And this may entail the above board realization that such moves will result in the eventual cannibalization of existing products or services. My take on this is that if a CEO isn’t prepared to make these hard choices, others in the market will eventually make them for them. Maintain some sense of solace knowing that dealing with ambiguity is part of the job and that many great CEOs have navigated through the maze. I’m reminded of the lines from Dr. Seuss’ book, The Places You’ll Go:

“You will come to a place where the streets are not marked. Some windows are lighted. But mostly they are darked. A place you could sprain both your elbow and chin! Do you dare stay out? Do you dare go in? How much can you lose? How much can you win? And IF you go in, should you turn left or right… or right-and-three-quarters? Or, maybe not quite? Or go around back and sneak in from behind? Simple it's not, I'm afraid you will find, for a mind-maker-upper to make up his mind.”

1. It often helps to bring in another set of eyes to help with the process. Some companies think of these as strategic planning cycle facilitators. I think of it as being so much more. The executive team is often faced with a number of current challenges and the workday seldom presents enough time to look at things with a fresh new perspective. And while such a person may have a pure consulting background, bringing in a senior executive that has been an operator and faced similar challenges, in balancing the innovation conundrum, can accelerate learning and hence, positive change. And while CEOs can and should benefit from joining a CEO peer group where he or she can safely discuss company and strategic challenges, having an on-board executive at the table to assist the CEO in thoughtfully articulating strategy to back his vision, supported by the generation meaningful execution plans, can dramatically increase the odds for success.

In summary, CEOs need to feel comfortable with the fact that the formulation of strategy isn’t always a straight line. There is often ambiguity outside the four walls of the company that the CEO and their team must navigate through to maintain relevancy. Over time, especially in our accelerated world, it’s a challenging task to maintain relevancy through mindful and constant innovation. Innovation often means connecting dots in new ways, taking the CEO and their team outside of their comfort zone, to a state once enjoyed and celebrated by the company’s founders. The conundrum of balancing efficiency in executing today’s operating plans with innovating for tomorrow is real and challenging. Fortunately, it doesn’t need to be an either A or B scenario when the right forethought is applied.

5 Clues to Understanding Irritable People at Work

While we all have “good days” and “bad days,” some people seem to be characterologically more difficult on a regular basis than others.  Sometimes this seems to be “who they are” from a personality point of view—they have a rather negative mindset, they’re grumpy, they don’t smile much and just have a “dark cloud” that follows them around.  There are others who recently seem more “touchy” and easily offended than they usually are.  Their moodiness can be confusing to others (and offensive as well!). As a psychologist, I’ve become aware that many people tend to attribute others’ behavior and reactions (or even general life events) to their own actions.  That is, we, in general, tend to attribute our actions as the cause for other events or reactions happening.  Often, this is not the case.  In fact, there is fairly good research showing that people tend to over attribute their influence on the world around them (and even their own lives).  (By the way, this is the basis of superstitions—developing a habit of wearing the same shirt, jeans and sitting in the same place that you did when your team won a big game, hoping it will bring “luck” and they’ll win again.)

While I am usually an advocate for individuals taking a look at their own behavior and accepting responsibility for their actions, in this case, I actually believe it’s best to put ourselves and our actions at the “back of the line” with regards to the potential reasons why our co-workers may seem prickly and easily offended.

Here are some alternative reasons to explore why your colleague may seem rather testy and annoyed.

• They don’t feel well. Often people become surlier when they don’t feel well physically.  This can come from lack of sleep, a medical issue they’re dealing with or chronic pain.  It may be that they have started to struggle with migraines, lower back pain, or some other issue.  Many employees don’t talk about how they feel physically and so those of us around them don’t really know that they don’t feel well.

• Personal issues. When we are dealing with stressful issues in our life, the emotional resources demanded to deal with these issues is significant and essentially we get “worn out.”  Again, many people won’t share about personal issues (especially if they are not asked) and so there can be something going on “in the background” of your colleague’s life that you don’t know about.  This could include marital or relationship difficulties, struggles with their children or adolescents, financial pressures, extended family issues (parents-in-laws, etc.).  When we feel pressed in our personal life, many of us become more annoyed at work in response to what would otherwise be a normal demand.

• When we feel anxious or fearful. Irritability (a mild form of being angry or upset) can be a “cover” for other underlying thoughts and emotions.  In our culture, many people have been taught (either directly or indirectly) that it’s not appropriate to express negative feelings—either at all, or in the workplace.  Therefore, they try to keep those feelings inside.  One common feeling that’s “kept in” is anxiety and fear. Our culture has shaped most of us to believe that it’s not acceptable to be anxious or fearful. Therefore, we tend to suppress our feelings and the anxiety is expressed through being prickly and grouchy in response to other people.

• When we are frustrated. Sometimes people become crabby when they’re frustrated either with their life, their job or some specific issue going on at work.  “Frustrated” is an interesting word because it is used in two different ways in our culture.  In many settings when someone is “frustrated” it is a nice way of saying they are a little bit angry.  The other meaning of “frustrated” is to feel blocked—that you can’t get to the goal you are trying to achieve. Frustration can lead us to react negatively to any situation, regardless of whether it’s directly related to the issue about which we are frustrated. (That is, we react in a quick-tempered manner to a situation that’s not directly related to what we are frustrated about.)

• Not feeling valued. When employees don’t feel valued either by their supervisor, the management, or their colleagues, then a common response is for them to become increasingly irritable, moody, and easily offended.  One type of “frustration” is when we believe our colleagues should value what we do and contribute, but we don’t seem to hear much positive feedback.  In our work with the 5 Languages of Appreciation, we help individuals identify their primary language of appreciation; that is, the way in which they prefer to receive appreciation. Interestingly, we also found that employees are most easily offended when a message is sent (unintentionally!) via their primary language that hurts them in some way.  For example, people for whom verbal praise is valued are also quite sensitive to any critique or criticism.  Or, those who value quality time are easily offended when they feel left out.

How should you respond?

While it is helpful to know possible reasons for the surliness of your colleagues, the question remains:  “What should I do?” 

A helpful response could be:

“I notice that you seem somewhat more easily annoyed recently.  Are you okay?  Is there anything going on that would be helpful for me to know about?”

Conversely, it is not helpful to be accusatory or speak in a “factual” tone of voice saying:  “You have been incredibly grouchy lately!  What’s up?”

Rather, frame your response in the sense of:  “It seems…” or “I’ve noticed…” which makes your comment a bit softer.  Then asking a question that communicates concern for them (“Are you okay?”) is helpful.

Be forewarned, you may or may not get a positive response (especially immediately).  Try not to react in a defensive or antagonistic way.  In fact, often a colleague may come back to you later and explain what’s going on after they have thought about your inquiry and concern for them.

Imparting Your Vision is About Leadership

Before I share my thoughts on imparting a vision, let me start with one of my favorite verses found in Philippians 2:3-4 Don’t be selfish; don’t live to make a good impression on others. Be humble, thinking of others as better than yourself. Don’t just think about your own affairs, but be interested in others, too, and in what they are doing

In my humble opinion, vision is like a goal that serves a greater purpose as well as serves others. So ask yourself who does my vision serve; does it serve my company, my employees, my family and my community?

In order for a vision to be compelling it must be clear as to how it will serve others. It can’t be just about building a more profitable business or being the biggest or the best. That vision is fine but so what? What is the lasting impact of realizing your vision, how will others be impacted?

If your vision only focuses on growth, profit or personal rewards it will fall flat in the minds of others you rely on to help you fulfill that vision. All of us want to be a part of something greater than ourselves, serve a greater good even if it’s the biggest construction company and the best accounting firm. What will realization of this vision mean to you, your family, your team and others?

Your vision must move others to action by the good it will do for others. Will you donate more to ministry or charity? Will you start a foundation to help the needy? Will your employee’s lives be better as a result; will they benefit from the fulfillment as much as you will? If your vision embracing these principles the implementing is the easy part, get to it!

I am reminded of God’s vision for His people when he challenged Moses to lead His people out of Egypt. God’s vision was clear but I don’t think the people fully understood what this meant to them. It took them 40 years to fully realize the true vision of what God had in store for them, the Promise Land!  Here’s what God shared with Moses in the book of Exodus….

Now go, for I am sending you to Pharaoh. You must lead my people Israel out of Egypt.” But Moses protested to God, “Who am I to appear before Pharaoh? Who am I to lead the people of Israel out of Egypt?” God answered, “I will be with you. And this is your sign that I am the one who has sent you: When you have brought the people out of Egypt, you will worship God at this very mountain.” Exodus 3:10-12

Five Common Search Committee Mistakes

In churches, universities and nonprofits across the country, search committees gather with high hopes and the intention to see a great leader chosen to lead their organization. None set out to fail, but in our experience, many make mistakes that prevent them from achieving the best results.

MISUNDERSTANDING THE PERSON BEING HIRED

A committee typically meets a candidate through his resume; but care must be taken to understand how this document reveals or conceals reality. Does it hide gaps in employment by inconsistently listing start and end dates for all positions? Do the degrees listed come from reputable schools and have they been verified for accuracy? Does the committee really know the reasons a candidate has changed jobs and is currently in the job market?

After the resume, many committees use a questionnaire as a screening tool to narrow the pool of applicants. Does it contain enough depth for the candidate to display their writing ability (or lack of)? An essay question beyond the obligatory “strengths/weaknesses” questions can quickly separate candidates and reveal their character. An interview panel may simply use a questionnaire later in the process after several rounds of elimination. Unfortunately this misses the power of questions up front to separate applicants and discern motives.

Once committees decide they “like” a candidate, reference checking can become perfunctory. Letters of reference may not be worth much - who’s ever seen such a letter contain negative comments? Diligent committees will conduct reference phone interviews of a minimum of five to eight people who have worked with the candidate during the past ten years including superiors, peers and subordinates. Any less presents a one-sided view of the candidate and her accomplishments. And while there can be procedural challenges, the possibility of including the spouse (who knows the candidate best) as a reference in the process can be quite insightful. Finally, the search committee’s interview of the candidate should be at least 2 ½ hours long plus include a meal if possible to give the chance for relaxed, less intense interactions with the committee.

MISUNDERSTANDING THE POSITION TO BE FILLED AND COMMITTEE REPRESENTATION

The technical competencies needed for a job might be the first items a committee establishes; does the candidate need to be a public speaker? A fundraiser? A media expert? The more difficult question, however, is “will they fit in our organization?” A diligent search committee will explore their corporate culture and assess what values and behaviors will make the candidate a proper fit as well as a powerful producer. Search committees often include different constituencies from their organization which adds to both a proper understanding of the culture and builds support for the validity of the search process. Adding staff and leadership team members to the committee will sharpen the presentation of the organization’s ethos, and ensure a proper understanding of the actual need on the staff the committee will fill.

Care should be taken to staff the search committee in a way that reflects the diversity of the organization itself. Differing points of view will be important to recruit talent to fill the position that is needed rather than just go through the motions. Beyond that, board members themselves should have substantial representation on the search committee if the position will be in the senior leadership team of the ministry, school or nonprofit. Otherwise, the search team will not have the confidence of the full board and may have less than the full authority needed to fill the position.

HAVING A SUFFICIENTLY LARGE POOL OF CANDIDATES

Search committees usually post their job opening first on their own website, second on job boards appropriate to their industry or market, and third with extended networks of which they are a part. This typically generates a rush of applicants and a feeling of progress. Yet once the dust settles on the pile of resumes, the committee often does not have a deep applicant pool of qualified and experienced candidates; rather, they have an odd assortment of unemployed or underemployed applicants. Only by expanding the pool to include individuals currently working in the field and not actively seeking employment can the committee have the kind of selection necessary to ensure a quality selection.

To access qualified candidates, currently working in the field, a search committee must become proactive — seek out recommendations from trusted sources in the industry. They need to do more than just post an opening and wait — they need to put on their “recruiter” hat and ask, “Who should be here doing this job and where might they be right now?” In this way, a committee has a greater opportunity to generate at least three quality candidates as finalists for the open position. Giving the experienced, insightful members of an interview panel quality alternatives, assures a better outcome — and takes into account the inevitable circumstances that cause even good candidates to drop out of the selection process.

AGREEMENT ON THE TYPE OF CANDIDATE DESIRED

Search committees can be filled with as many agendas as there are members. Because they are chosen to represent certain constituencies, they may even feel they have a mandate to find a certain type of candidate. If the board of the organization has not worked through a process of defining the position requirements, the search committee will struggle. In a church, some might believe the main component desired in a leader is preaching ability, while others look for managerial skill. A committee that lacks unity will certainly struggle to find an excellent candidate.

Another issue that divides search committees is the selection of internal candidates. Because of existing relationships, teams may be biased either for or against internal candidates. The diligent search committee will follow the same processes for all candidates — both internal and external. They might also ask internal candidates to keep the process confidential for as long as possible, to minimize disruption. If confidentiality is impossible, internal candidates should be considered first and informed as quickly as possible to allow everyone to return to work after speculating that their colleague might become their boss.

BEING CANDID WITH THE CANDIDATE

First dates can be awkward...one may try to make a positive first impression and demonstrate their strengths while hiding their flaws. Hiring a new leader for your organization can be like a courtship. Showing genuine care for and interest in a candidate can’t help but make a good first impression. That extends at the proper time to a spouse and family’s involvement (if relevant). Many search committees alienate excellent candidates because of a simple lack of courtesy in communication that wasn’t timely or inattention to details such as “who picks up the check?” after a dinner interview.

But the relationship must deepen... and if the committee remains at a surface level with a candidate, never moving to deeper issues in the organization, failure is likely to result. Most organizations hire new personnel because they have a need — leaders deserve honest and timely information on the challenges inherent in the position. At the same time, committee members should beware of telling their entire history or sharing every organizational dysfunction. That’s just “TMI”! A balanced, honest and caring interaction with candidates will go a long way to making a mutually satisfying, long term relationship.