Monday, February 20, 2012

Poor Management = Disengaged Staff = Lower Profits

I think it was the 60's folk group, Peter Paul & Mary who sang "When will they ever learn?"

I couldn't help but think of this over the weekend.

I have 2 daughters who are still studying and, like most of their peers, they work part time to generate income as they complete their degrees. One works in a locally owned fashion store and the other in a well known jewellery chain with high quality merchandise but owned by overseas interests. Both enjoy their work - they love the interaction with people and each of their employers recognises them as people who make their targets.

Last Thursday the daughter who works in jewellery mentioned that, on Friday, the regional manager would be visiting the store where she works. She said that her manager appeared a bit concerned because the shop's figures were 8% down on target - a situation that their research showed was somewhat better than most other retailers in their shopping centre and a lot better than the situation with the other members of the same chain in nearby shopping centres.

On Friday evening she came home furious. We learned that the regional manager had shown absolutely no understanding, had not been prepared to listen, and had given all 11 staff members a formal warning of dismissal - this despite the fact both my daughter and her manager were ahead of budget on their individual figures. On Saturday my daughter learned that she was not the only one now looking for another job.

Now I know that retail is a hard business at the best of times and that, right now in Australia, it is especially difficult. But surely the last thing you want to do is to have your good staff looking for other jobs!

The truth is that good people don't work for bad bosses! Once good employees find out that their management is poor to bad, they start looking elsewhere - and, because they're good, its not too hard for them to find alternative employment even when the job market is tough.

Retail trade is very dependent on floor traffic. That is why so many retailers go into large shopping centres where the multiplicity and variety of shops encourages a wide range of people to browse even if they have nothing specific to buy. If floor traffic is down there is very little, if anything, that a small individual shop can do to generate more shoppers. If this low floor traffic is coupled with a reduced spending pattern (such as Australia is now seeing) then meeting targets becomes even more difficult. The evidence of this is seen in the closure of so many retail outlets across the country over the last year or so.

In difficult times organisations need highly committed people who are fully engaged with their employer and their work associates. These fully engaged people will function as effective teams and will search for creative ways of meeting targets. They will engage with potential customers knowing that satisfied customers spend a lot more money than dissatisfied ones. Good management recognises this and seeks to enhance commitment. Poor management destroys commitment by making threats.

My suspicion is that somewhere in an office well away from Australia, is a management team that has looked at the jewellery chain's Australian figures and has put a lot of pressure on the local management to improve results. The local CEO has passed this pressure down and it has reached regional manager level. The regional manager, feeling threatened, has hit out at the managers of individual stores, etc. Its a classic example of PPM ("piss poor management").

Of course, this isn't only found in retail and its not only found in overseas owned operations.

There is significant research showing that the most critical thing in achieving desired results is that people feel physically, emotionally and psychologically safe. Immediately a person is threatened with dismissal this safety factor is triggered. At that time the person becomes more concerned for their own welfare than they do for their employer. A descending spiral commences which results in everyone losing. I can see this starting to emerge with the jewellery chain in question.

All of the data shows that most people want to do a good day's work and achieve results. Good managers understand this so they set clear performance targets in both qualitative and quantitative terms, then through effective feedback and an appropriate balance of control and empowerment, they create an environment in which people are fully engaged and in which they can achieve the desired results. It a pity the senior management where my daughter works doesn't understand this.

I believe its well past time to get rid of PPM practices.

I'd love to hear what you think. Please provide me with some feedback.

More about Doug Long at http://www.dglong.com

Thursday, February 16, 2012

Ash Wednesday Revisited

On the radio this morning I heard the announcer say that it was today, 29 years ago that the Ash Wednesday Bush Fires erupted in South Eastern Australia.

I was living in Melbourne in 1983 and I remember the day well.

Like today, it was sunny although, unlike recent Sydney weather, February 16, 1983 was the continuation of a hot, dry period of late summer. I was working quietly in my home office and scarcely noticed the wind rising. However, as the day progressed, the wind got stronger and the sky darkened - but not with rain. I turned on the radio and was quickly aware of the fact that fires had started in various parts of Victoria and South Australia. With the strong winds that had developed, these fires were racing across farm land and through the bush. All available fire crews had been mobilised to fight the various conflagrations.

It was late afternoon when I was contacted and asked to report to the State Relief Centre in Melbourne to help out there. On reporting I was asked to coordinate the Centre's operations and ensure that, as far as possible, people and communities affected urgently received the support and assistance they needed. I'm still proud of the work done by the team with whom I was privileged to work.

As I think back over that period, several things come to mind:

First, apart from those who were already part of the various emergency and relief organisations, the absolute commitment to help and the generosity of so many "ordinary" people was amazing. All support agencies in Melbourne were besieged by people offering time, money, and goods to help those in need. The contract drivers for a major trucking company volunteered their vehicles to transport goods wherever they may be needed - and that included all costs involved. Quick food chains arrived with food for the volunteers both wherever they may be. In affected areas, accommodation, food, clothing, and all other forms of support miraculously appeared. There was no need to appeal for help - in so many cases, it simply arrived.

Second, that all too often we give only lip-service to the dedication, courage, and commitment of those in the front line of disasters - how often are we quick to criticise the police, the "fireys", the "ambos", and the others who are actually face-to-face with the issues and doing whatever is necessary for as long as necessary in order to achieve results. We praise them on the day then return to simply treating them as part of the scenery until the next major disaster occurs. We are happy to use them when its to our benefit but largely ignore them the rest of the time.

What my experience with the Ash Wednesday Bush Fires taught me is that, when made fully aware of an issue and given the opportunity to contribute, most people will willingly put in astronomical amounts of time and effort to being about a satisfactory solution. Most people want to contribute to something worthwhile and, given the chance, will become fully engaged with achieving results. When they believe that something is worthwhile and their energies are correctly harnessed, ordinary people achieve extraordinary results. Those with specialist training and roles will draw on all of their knowledge and skills while unskilled generalists will go out of their way to provide whatever additional support is required.

The tragedy is that our politicians and business leaders (totally supported by the media) seem to forget this. We are surrounded by walls of spin that seem to assume people either cannot handle the truth or that we cannot be trusted to do anything satisfactorily unless we are rigidly controlled. Our politicians seem to believe that only they and their bureaucrats know what is best - the strongly and rightly criticised legislation from both the Howard Government and the present government affecting Aboriginal communities in Australia is but one case in point. Our business leaders seem to believe that only they know how what are the issues needing to be addressed in their organisations and how to address them. Vested interests from those "in charge" dominate what is done and how it is done.

As I said, my Ash Wednesday Bush Fires experience taught me that, when made fully aware of an issue and given the opportunity to contribute, most people will willingly put in astronomical amounts of time and effort to being about a satisfactory solution. When people are fully informed with the "truth, the whole truth, and nothing but the truth" and then are empowered to help bring about desired results, amazing things happen.

Isn't it about time we really learned this?

What do you think? I'd love to know. Please make your comments below.

More information about Doug Long at http:www.dglong.com

Tuesday, February 7, 2012

You've got to love those skinks!

The skink was back on Sunday.

Well, I'm not really sure if it was the same skink about which I wrote a week or so back, but there certainly was a skink back in the kitchen - and the cat was still around.

For those of you not familiar with Australian fauna, the common garden skink (Lampropholis guichenoti) is found virtually everywhere in South East Australia. It has a smooth dark greyish body with a dark stripe running along each side - a very beautiful creature that is totally harmless, good for the garden, and enjoys sunning itself on rocks and ledges. From tip of nose to end of tail the ones around here seem to be about 18 cm (about 7 inches) long.

But we seem to have a skink with a penchant for danger - or one that
knows that there is a short cut between the front and back gardens if one goes through the house! The cat was sleeping near the door when the skink arrived on the porch, paused, looked at the cat, then scurried inside close to where I was reading a newspaper. There were a few moments of activity then, safely caught in a bag, the skink was removed and released into the front garden.

Now I know that skinks can't think rationally (and probably can't really think at all) but I had to wonder why a creature with no defence mechanisms other than flight or freeze would stray into the path of danger (the cat) and away from an environment in which it can find plenty of places to safely hide. And that got me thinking about the behaviour of people. How often do we act without thinking (virtually operating on 'auto pilot') and put ourselves and others in some form of danger?

We all see it every day. Someone puts an item on the stove (or a bench, or a table), close to the edge and with a handle sticking out in such a way that it could be easily bumped and dislodged; someone listens to music or talks on their phone whilst walking along a street totally oblivious to other people, traffic, or immoveable objects; people remove children and/or items from their car using the door that juts out into the traffic flow endangering both themselves and that which they are moving and passing traffic; people in shops block an entire aisle with their shopping basket or while chatting with a friend; and so on. There are myriad everyday examples, with which we are all aware, of unthinking risky behaviour. People operating on auto pilot with no manual override apparently present!

We all have 2 minds - a childlike mind that operates without thinking and an adult mind that is capable of rational thought, of planning, of "thinking outside the square", and generally enabling us to be creative, exciting people who are aware of others and our surroundings and who seek to operate safely and successfully without endangering ourselves or others. A childlike mind is totally acceptable in a child - in fact it is one of the endearing factors of children - but its not the best mind from which to operate when we're grown up.

You can shift your brain's control to the adult mind. Its not all that hard - all you've got to do is to access something that is already there; that you use frequently; and make it your default way of thinking and acting. There's some more information about how you can do this on http://www.evancarmichael.com/Leadership/5178/summary.php

Why not let me know what you think? You can place your comments below.

More about Doug Long on http://www.dglong.com

Wednesday, February 1, 2012

Improving Decision Making

Chris Stephenson, a highly successful and well respected CEO who is now a management consultant in Sydney, has recently completed a valuable study on decision making[1].

There is plenty of material available that shows the importance of making good strategic decisions and, in retrospect, it is always easy to nominate “good” or “bad” decisions. Of course, there are also plenty of models around that can work us through a process (usually quite time intensive) designed to ensure we make the “right” decision.

But most of us don’t have the time to work through some complicated decision-making model and, even if we did have the time, the evidence shows that there is still no guarantee that we will make a “good” decision every (or even most of) the time. In fact there is data that shows only about 15% of organisations have the ability to make and implement important decisions effectively.

Stephenson interviewed CEOs and Executives in Australia about their decision making processes. His interest was to find out how we can improve the quality of decision making – in other words, rather than considering decisions that had been made and then deciding were these decisions “good” or “bad”, he wanted to find out those things surrounding the final decision being made so that the probability of a “good” decision improved.

He found that the key factors that resulted in poor quality decisions were:

  • No decision-making process – Decisions are made on a case by case basis often by a small sub-group or by the CEO alone mandating a direction without any discussion.
  • Lack of transparency – Excluding stakeholders from decision-making, withholding information, side-bar discussions between the CEO and individuals outside of the TMT.
  • Low tolerance for diversity and alternate views – A low appreciation of the value of diversity and experience.
  • Disrespect – Treating those with different views as disloyal and not team contributors.
  • Data – Ignoring data when it didn’t confirm favoured outcomes. Over relying on small data samples when they supported desired outcomes. Pretending everything is OK when it’s not.
  • Dominant individuals – A CEO or others dominating the discussion and chiding anyone that offers alternative inputs.
  • Self interest – Allowing self interest to be the basis of decision outcomes rather than organisational best interest.
  • Emotional factors – Taking decisions on gut instinct without cross-checking against the data. Not appreciating the affect of personal biases on decisions.
  • Narcissism – Decisions driven by individuals with an over developed self belief and inability to comprehend other people mattering or themselves being wrong.
  • Ego – Decisions driven by one person’s agenda to further themselves.

All business decisions today are made in an environment of increasing complexity, information overload, reducing lead-times, personal motives, survival and self-serving instincts, and pressure associated with meeting market expectations. What Stephenson found out was that the quality of decisions depended a lot on:

  • Knowing who is making the decision and their accountability for it
  • Understanding the timeframe
  • A robust process
  • Transparency
  • Inclusiveness
  • Appreciating diversity
  • A sense of order
  • Accurate data
  • Mutual respect
  • Active debate on issues with everyone involved having a say

Where this second set of factors were clear throughout the organisation – in other words, this was the organisation’s culture - the quality of decision making improved significantly.

What decision making culture exists in your business? As Stephenson shows, its not hard to make it positive.

More information about Doug Long at http://www.dglong.com



[1] Unpublished DBA thesis through Southern Cross University.

Monday, January 30, 2012

A Skink's View of Life!


We have skinks at our place. For the technically minded, they are Common Garden Skink (Lampropholis guichenoti), but we simply call them “skinks”.

We also have a cat.

The two tend to be mutually exclusive – so, as far as possible, we protect “the skink” from “the cat”.

The other day I was pottering in the kitchen when I saw a skink running across the floor. I also saw “the cat” sitting on the back porch – right in the skink’s path. I moved to catch the skink and then commenced a game of hide and seek that took me about 30 minutes to win. Fortunately “the cat” didn’t see “the skink”!

Eventually, securely apprehended, “the skink” was taken out another door and released into the safety of the garden.

Got me thinking.

My intentions towards “the skink” were entirely honourable – I wanted to save its life. The skink also wanted to save its life – survival is a strong instinct. We were in total accord – except the skink couldn’t get the message. It was totally unable to move its brain’s area of control out of “the red zone” – mainly because it has no “blue zone” – so it got increasingly traumatised and ran around oblivious to the real danger – “the cat”.

Fortunately there was a happy ending this time, but, as I say, it got me thinking.

How often are the threats from which we run not really threats at all?

Our “red zone” of brain control can’t tell what “threats” are real and what are not. When our brain is under the control of our red zone, anything different or that challenges our comfortable way of thinking and acting can be seen as a threat – even when, at the worst, it is benign or, at the best, it is very positive. Our red zone can prevent us from responding appropriately. We will respond to “the threat” by fight, flight, or freeze no matter what.

All too often our daily living reflects a skink’s view of life!

Of course this skink’s view of life in encouraged by irresponsible media who fail to call the government to account (Iraq, Afghanistan, Iran, Israel-Palestine relationships are cases in point) and by those who have a vested interest in keeping us scared so they can exercise control and explain how “they” can keep us “safe” by taking actions “they” deem appropriate.

But we’re not skinks. People have a blue zone – and we can learn how to shift our brain’s area of control into the blue zone so that we can live differently.

I can help you make this shift.

More information about me at http://www.dglong.com

What do you think? Please make your comments below.

Wednesday, January 11, 2012

Focus on the Horizon

Very recently I drove a rally car and I have the video to prove it!

For my birthday last year, the family gave me a voucher for a rally car driving experience - drive 2 different cars, each for 8 laps, then do a "hot lap" with an experienced (and in my case, luckily, a very successful) rally car driver. It was great fun. I thoroughly enjoyed it and I learned quite a bit about handling a car under vastly different conditions from what are experienced in day-to-day road driving.

Lesson 1: focus on the horizon
Many years ago my first driving experiences were on rough roads in country areas and farms. I thought I understood how to control a vehicle on greasy road surfaces. I learned that there is a big difference between driving a car very slowly on mud and gravel when compared with driving it fast. When driving fast I have learned to focus on the horizon, keep the wheels pointed in the direction I want to go, and to be careful not to try and correct too much for all the slipping and sliding that occurs. It is counter-intuitive.

Lesson 2: transfer the weight
The cars I drove were either front wheel or all-wheel drives (one of each). I learned that braking hard transferred the weight of the car from the front wheels to the rear wheels and that, if I needed to make a sudden or sharp turn, the best way of doing this was to brake hard, turn the wheels in the direction I wanted to go, then let the car do the work. By braking hard when I came to a turn, letting the car do the work, then accelerating out of the corner I could achieve my objectives while maintaining control.

Lesson 3: listen to the experts
Over the years I've driven a wide range of vehicles (including tractors and ambulances) at just as wide a variety of speeds under almost every possible road condition. I approached this adventure secure in the knowledge that I was a highly experienced driver with a very good record regarding accidents. At the safety briefing all of those doing the course were advised to listen to the instructor who would be sitting beside us on the track. I'm glad I heeded this. My instructor had won a number of international car rallies and could see things I couldn't in regard to my driving. Listening to him enabled me to start slowly then develop to quite fast circuits - and I only spun out twice! Listening to the expert saved me embarrassment and possible injury while simultaneously enabling me to have fun and achieve my objectives.

Seems to me that there's some pointers there for business as well as for life in general.

I'd love to know what you think. Let me know in the comments below.

More about Doug Long at http://www.dglong.com

Saturday, January 7, 2012

2012 - How Will You be Remembered?

The other day I was chatting with some friends when one commented that "John Howard was the worst Prime Minister in Australia's history!" Now, as my friends know, I am pretty a-political - I dislike equally all politicians and political parties - but I was amazed. I was even more amazed to find myself defending Howard and commenting that a good case can be made for him being one of Australia's best Prime Ministers. When I pressed my friend to explain her comment, the emphasis was on Howard getting Australia involved in Iraq and Afghanistan - for both of which there is a very strong argument that Australia should never have got involved - she had forgotten his introduction of the GST (which, prior to the election, he had promised would never be introduced) which has helped transform the Australian economy. She had forgotten his strong leadership regarding gun control following the Port Arthur Massacre. And so on. All she remembered was the invasions - the negatives.

But this got me thinking. How do we remember people and how will we (and they) be remembered at the end of 2012?

My mind wandered to one of my more pleasant brushes with fame. Back in 1977 I was visiting Sydney and staying at the Boulevard Hotel. Together with a few friends, on the Saturday, I went to Doyles Restaurant in Rose Bay - then a justifiably famous and popular seafood restaurant. During the meal we became conscious that the folk music singer, Burl Ives, was also lunching there - in fact he was only 1 table away. Lunch went on and eventually the crowd thinned until there was only Burl Ives and his party as well as me and my friends present. One of Doyles staff came and spoke with the great man and, after a few minutes, left before returning with a guitar. For the next 30 or so minutes, Burl Ives entertained us with an impromptu concert. It was great. A little later, after returning to my hotel. I got in an elevator to again find myself face-to-face with Burl Ives. We chatted and I was impressed with his friendliness and obvious enjoyment from engaging with his public. I'll bet that Burl Ives never remembered meeting me, but 35 years later I still remember meeting him!

When I think back over recent years I am sure that people have mixed memories of me. I certainly don't think there would be agreement that accorded with how I would like to be remembered. And those memories significantly impact on how these people think of and interact with me today.

Its like our current crop of political leaders. My view of the Prime Minister, based on her performance in 2011, is that of an ambitious, possibly Machiavellian, person who is prepared to compromise at times in order to get legislation passed - 2011, despite there being a "hung" parliament, saw an almost record number of pieces of legislation passed. Based on her past performance, I suspect a lot more legislation will pass this year. My view of the Leader of the Opposition, is that of an equally ambitious, possibly Machiavellian, person who has a limited vocabulary - he knows how to say "No!" Based on his past performance I suspect we will see a continuation of this in 2012.

My perceptions may be quite wrong - I've never met either of them. They may both be very nice, approachable, highly principled people who are very positive and strong on engagement. Both may act quite differently this year. But my views are based on what I've seen and heard up to the end of 2011.

I don't make New Year's Resolutions, but thinking about all of this has given me a drive to be a bit different this year. At the end of 2012 I'd like to find that there was a pretty good agreement between the way I think of myself and the way others think of me. And that will mean I have to make some behaviour changes.

At the end of 2012, how will you be remembered? What are you going to do in order to bring a greater consistency between the way you see yourself and how others see you?

I'd love to know your views. Your comments are welcomed.

More about Doug Long at http://www.dglong.com