May 15, 2013 | Governance, Leadership, Personal Rant
On this Budget “morning after” where public spending is at 33.5% of GDP and rising, all the debate is about the detail, weather or not the “baby bonus” should be retained, the validity of the forward estimates given recent history, and increase in the personal tax rate of 0.5% tearily described by the PM as just a small increase in the Medicare levy.
To my mind, we have missed the point.
It seems to me that a real problem in this country of ours is that we have allowed a culture to evolve that punishes errors of commission, those errant outcomes from someone actually taking some initiative, doing something, but getting it wrong. Sometimes they are the result of circumstances beyond their control, sometimes they just misjudge, and yes, sometimes, are just plain stupid, but at least they got off their arses and did something.
By contrast, we seem to just put up with those who do nothing but follow the party line, do as they are told, accept the status quo no matter how dumb they think it is, and just park their brains at the door.
Not the image we hold of ourselves.
The reality is about as far away from the bronzed Aussie gazing into the sunset somewhere harsh, taking all life can deliver with a grin and a stoic resolution to persist.
Perhaps it is about time we started focusing some light on those who did nothing, took no responsibility for their actions, and just sucked at the teat delivered on a platter.
Our public sector consumes well over 33% of GNP, yet produces nothing. Much of the money is necessary if we are to be a civilised society, but not all of it. The lack of productivity in the public sector is a national disgrace. Layers upon layers of paper shuffling, process management with little regard to outcomes, and meaningless KPI’s chased by intelligent, educated people, many of whom would love the opportunity to make change, but are prevented from doing so by the inertia of the system and prevailing culture.
The greater error should be the one of omission, not commission. How do we empower the bronzed Aussie of our collective imagination?. We should be seeking better outcomes for the money spent, not just arguing about the amount spent.
May 14, 2013 | Governance, Management, Operations, Uncategorized
I found myself in a heated debate last week with a headhunter about the value, and challenges of SME’s outsourcing the hiring of employees, particularly salespeople.
Her view: SME owners are so time constrained that anything not “core” to success should be outsourced, and left to professionals.
My view: If sales, or as I like to call it, Revenue generation, is not core to every SME, I do not know what is. Whilst it may be the product offering, that delivers the value, it is sales that delivers the opportunity to deliver that value, and therefore is the key role, and should warrant substantial attention. Picking those who will represent you with current and potential customers is much too important to be outsourced to “professionals” who get paid by delivering a body to a seat.
While there are exceptions at either end of the employee scale, casual factory workers are perhaps best outsourced, and it is probably sensible to have a headhunter exercise their skills and networks to find a group of people who fill demanding profile when seeking a new CEO, from which a board can make a choice.
However, this is not how it usually evolves. The usual is a harried, busy executive whose KPI’s have little to do with the quality of the team, and the individuals who make it up does not give adequate thought to the personal dynamics and capability requirements of the role, they just want a warm body that appears able to do the job in the seat ASAP.
Good salespeople make or break a business, the challenges in finding, keeping, and maximising their productivity are substantial, but are central to the success of the enterprise.
May 13, 2013 | Marketing, Small business, Social Media
Creating content, the stuff that engages people, preferably customers, potential customers, and influencers of these two groups people (otherwise why are you doing it?) is a real challenge, but one that successful use of social media demands is addressed. There are plenty of resources out there offering tips and templates, but they do not get the job done.
When you have addressed the challenges, and have great content, if nobody reads and shares it, why bother?
SEO tools also abound, just behind the seeming hordes of people offering to lift your Google ranking, for a fee. It seems to me that SEO has spawned a host of shysters matched only by the easy money opportunities emanating from Nigeria.
So where do you go in all this? How do you make the tough choices about how to allocate scarce resources? SEO or Content?
A couple of general thoughts that I have offered to clients over a while now, and which seem to work.
- Have very clear objectives. An investment in Social media is like any other investment, the first step is to be crystal clear about what it is you are trying to achieve. Setting out to get to the top of Google requires a different set of activities to engaging existing customers, building a position as an industry expert, or creating a sales pipeline. These objectives are not necessarily mutually exclusive, but using SEO strategies that build general awareness when you are looking for specific outcomes such as increasing your share of existing customers wallet, is as appropriate as taking the family car to a competitive hill-climb.
- Use analytics. Facts should always be the basis for decision-making, and the facts are there when you go looking for them. Marketing for the first time in its history as a profession can be held accountable to metrics that accurately measure outcomes, rather than just activity. It can be a daunting task, data analysis often can be to many, but there are free resources and tools available that offer an unprecedented accountability and transparency of marketing investments. A Google analytics dashboard at the very least should be compulsory. If you need a resource to assist your thinking, the very very, best is the Occum’s Razor blog written by Avinash Kaushik. A really good strategy is to take your device on holidays, and spend the week reading and understanding the stuff that Avinash writes. It is gold!
- Be prepared to experiment. Social media is a bit like the finches in the Galapagos, many may look the same at a fleeting and uninformed glance, but the detail of the evolution, the way individual groups have evolved to maximise their effectiveness in a specific environment is extraordinarily different. This has happened to the Galapagos finches over millennia, but is happening as we speak to social media tools and strategies, and the only way to leverage the specific circumstances you find yourself in, is to be completely agile, and committed to responding positively to changes in the environment and new information.
- Remove the rules and barriers to customer engagement. It can be confronting for many (particularly older, and dictatorial managers) to consider allowing personnel who actually interact face to face with your marketplace to have the authority to make decisions and respond on the spot to needs and opportunities as they emerge. Whilst there needs to be some general rules of engagement, that reflect the business model and values of the organisation, empowering employees can be remarkably effective.
- “Social” implies interaction.” Social media is a two way beast, whilst there is enormous potential to build value, the flip side is that the risks of social media becoming a problem are very real. The immediacy of the potential negative impact of social media needs to be recognised, and there needs to be very clearly understood strategies to deal with any such outbreak of negativity. If you cock up, social media can destroy you, particularly if you try and cover up the cock-up, and there is also the opportunity for malicious and competitive attack. This risk also needs to be acknowledged, and ideally “war-gamed” even if in a small way.
- We are stuck with Social Media. The final thing to remember is that Social media will not go away. We have seen it before, when Guttenberg got his press working, the world of the printed message changed forever, and it has happened again. Hoping it will go away, that the impact will not reach you is fantasy land, so get with the program, with all its challenges.
May 10, 2013 | Innovation, Small business
Yesterday, watching a bee that had snuck in my office window trying to get out, I was reminded of a simple fact that to my mind is a great metaphor.
Put a few bees in a bottle, and point the bottom towards a light source, and the bees will all belt themselves against the bottle bottom, never finding the open end. Flies by contrast buzz around at random, and eventually will, by luck, find their way out the open end.
Running a portfolio of R&D projects is a bit like having a lineup of bottles full of bees.
For some bottles you need to have light very focussed at one point, in order to concentrate the effort at that point, others you need a wider light source to enable a wider scope of activity, and others, you need light all around, with one small exit, so that eventually the disciplined bees will find the opening, and escape.
If all you have in the bottles are flies, exercising discipline is a pointless exercise, as flies just buzz at random irrespective of external motivation. You need bees, and multiple potential light sources.
Getting the right mix of disciplined process and the connection of the apparently random dots that make the “wow” moment is the core task of those running a portfolio of projects.
May 8, 2013 | Change, Management, Strategy
Success is the result of hard work, smarts, good teams, focus, with a hit of “right place, right time” thrown in, etc, etc, right? Right.
At least that is what I always believed, knocked into me by my Dad who believed, and lived by the credo that “the harder I work, the luckier I get”
Increasingly however, I am seeing success being a relative thing, significantly dependent on a whole host of factors outside our control, many that have perhaps only come into play since the net made our world so bloody complicated, immediate and transparent.
Bill Gates did well, right time and place with an idea that was new, but when he pitched it to IBM, the defining moment of his career, he was not to know that internally IBM had reached some strategic conclusions about how they would approach the emerging world of personal computing.
Contingency.
Ron Jones got fired three weeks ago from JC Penny, where he lasted 17 months after being hired to “Appelise” the aging department store retailer. The retail guru who saved Target, created the retail megastar that is Apple stores, failed to do anything but annoy JC Penny’s existing management who rebelled, and customers who went elsewhere.
Wrong strategy perhaps, but it had certainly worked before, demonstrating again the sensitivity of context, and that success is a fragile, elusive thing, dependent on all sorts of contingencies, making continuous experimentation a “must”.
