Meritocracy, not democracy.

Meritocracy is about the best ideas, whereas democracy is about consensus, usually an average outcome.

In a democracy, those who manage to smooth the waters, and gain the average usually get ahead, but in a true meritocracy, those with the best ideas get listened to, and eventually get ahead.

Collaboration is often confused for democracy, everyone gets an equal turn, but in a collaboration that will win, only the best ideas survive the demanding, often aggressive review and decision making process that are core to success. It is this review that crashes most collaborations, because most people see them as democracies, not meritocracies brought together to identify and harvest the best ideas.

Sobering thought when you consider the challenges we face, economically and socially, to think that at best, we can have an average outcome.

SME’s need to adapt or die

Being a supplier to FMCG retailers is really, really hard. The two gorillas are demanding, unreasonable, and often just plain stupid, at least that is a suppliers assessment. If you asked the retailers, they would just be doing their jobs, maximising the revenue and margin returns from their shelf-space, minimising their costs, and competing aggressively for access to the consumers wallets.

It is just a matter of perspective, but whilst the customer is not always right, they remain the customer, and if you want to serve them, it is you, the supplier who must adapt or die.

The current pressures on SME food industry manufacturers, a high $A, the retailers push into housebrands, difficulties in funding working capital, skills shortages particularly in regional areas where many of them are situated, and promotional costs, are pushing many to the wall. The long term impact of these changes appear to be all bad for the economy, as food security, balance of payments, regional jobs and skills,  and having a manufacturing base from which to innovate, are all compromised. However, there is  not much joy in complaining, clearly the various governments do not care, or are more engaged in important debates like gay marriage, and spending our money on sectional interests who seem to have a few votes, so we have to address the problems ourselves.

Manufacturing, let alone food industry manufacturing no longer even warrants a seat around the cabinet table, clearly we are on our own, so we adapt or die, and many will die, the few who successfully adapt will be very good indeed.

 

 

Collaboration and the cost of yesterday

Ronald Coase  was first to recognise and articulate the economic relationship between individuals and the co-coordinating structures necessary to organise the work of individuals, coining the term “Transaction costs” in his 1937 essay “The nature of the firm” 

Coase in his original paper  set up the theoretical framework for the huge cost reductions now possible, enabled by the tools of the web 2.0, which are gathering momentum at a huge rate.

What he did not spend too much time thinking about, because it was not relevant at the time, were the costs imposed by a redundant status quo. Cultures of organisations often require that costs to be absorbed simply because the operating environment has not evolved sufficiently to  allow the collaboration tools now available to be used to their potential, leaving co-ordinating overheads to do the work now possible with a mouse, and a bit of nouse.

The possible competitive advantage to organisations, particularly ones with widespread operations is huge, as most of the competition will have trouble making the leap.

Let them pay the cost of yesterday,  you have the opportunity to grab the future in recognising the power of the new collaboration tools.

 

Too busy!!

Busy, busy, busy, everyone is too busy to do anything important.

We have had a reshuffle of the federal cabinet, busy people, dedicating limited  time to gay marriage and other such important matters, a client of mine is so busy some the basic management stuff simply does not get done, and most large organisations I see are so busy reviewing and planning that there is little time left for doing.

Three simple rules to get more done:

    1. Keep it simple
    2. Be prepared to fail sometimes
    3. Have a go.

In a lovely juxtaposition last night, there was a rerun on one of the digital channels of the “Yes Minister” episode  dealing with a rumoured reshuffle, and Minister Hacker reviewing his options. Very close to the current bone.

Stop being busy, and to borrow the phrase, “just do it”

 

11 requirements for Collaboration co-ordinators

Currently, I am in the middle of a project that seeks to find a way to motivate a collaboration between a group of industry and government bodies on a pressing problem. None of these bodies have a culture that welcomes external collaboration, they often seem to have trouble even internally.

In the process  I came up with a list of “must haves” that the  proposed co-ordinating body must take on just to get the prospective collaborators to the table to talk about it.

Any comments, and additions would be welcome

      1. Independence,
      2. Transparency
      3. Plays a catalytic role in the collaboration
      4. Ensures the governance of the collaboration is robust and consistent.
      5. No self interest beyond the role to facilitate the collaboration
      6. Serves as a co-ordinating body for activities,
      7. Serves as the communicator, but without any exclusivity
      8. Serves as the “warehouse” for codified IC
      9. Acts as the dissemination mechanism for IC, and contributions to the process.
      10. The body needs to have the confidence of all stakeholders.
      11. Dispute resolution mechanism

 

 

 

3 requirements for Respect

Respect is a word bandied about a fair bit, but what does it really mean in an organisational sense?

It seems to me that respect is rarely built by an avoidance of conflict, rather by the willingness to meet it head on with three behavioral characteristics:

    1. Using facts and data when available on which to base a view, not relying on personality and position.
    2. All assumptions made are absolutely transparent, and any relevant data is available to all for analysis and debate.
    3. “Due process” during the discussions is clear, all parties have ample opportunity to put views, particularly dissenting ones, on the table for  discussion.

By contrast, the easiest way to destroy respect is to allow personal stuff to intrude.