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President or Leader?

In just under four days, America votes not only for its president, but also for it's leader. A leader who will have to deal with some significant burdens. The stakes are high for voters, the man they elect will likely be remembered as the man who saved America, or the one who broke it.

According to Jack Welch in today's Australian Financial Review, the next leader of the United States needs "optimism, courage and conviction." He will also need to be a leader for the ages, or as Welch puts it a "leader in the extreme."

So, with Kerry and Bush both locked in a close battle amongst Cathlolics and non-Catholics,, young voters, old voters, men, women and independents, who will voters see as the man most likely? Who will they see as a "leader in the extreme?" Welch poses some questions that Americans might consider before casting their vote, questions that he thinks define a great leader during tough times.

1. Is he real?
"A person cannot make hard decisions, hold unpopular positions or stand tall for what he believes unless he knows who he is and feels comfortable in his own skin.

I am talking about self-confidence and conviction. These traits make a leader bold and decisive, which is absolutely critical in times where you must act quickly, often without complete information. Just as important, authenticity makes a leader likeable, for lack of a better word. His "realness" comes across in the way he communicates and reaches people on an emotional level. His words move them; his message touches something inside"

2. Does he see around corners?
"Every leader has to have a vision and predict the future, of course, but great leaders in tough times must have a special ability to anticipate the radically unexpected... (The) best leaders... have a "sixth sense"For the next president in our new world, a "sixth sense" is not enough. He needs a seventh sense - paranoia about what lurks in dark corners we cannot even see."

3. Who's around him?
"In tough times in particular, a leader needs to surround himself with people who are smarter than he is, and they must have the grit to disagree with him and each other."

4. Does he get back on the horse?
Every leader makes mistakes, every leader stumbles and falls. The question is, does he learn from his mistakes, regroup, and then get going again with renewed speed, conviction and confidence? The name for this trait is resilience and it is so important that a leader must have it going in to a job because if he doesn't, a crisis time is too late to learn it."

5. Is he pro-business (Gee who would have guessed that was coming!)
"Business is great. Successful companies are the engine of a healthy society and nothing short of the foundation of a free and democratic world. A great leader in this day and age must appreciate the value of business to the world. He cannot beat it down, denigrate its participants or create an environment where business people must struggle to build opportunity. When business is weak, America is weak."

So American's could opt for John Kerry's plans, or chose to head further down the radical, transformational path GWB has set for it in his first term, or they could opt to think more about leadership than politics.

Whatever and whichever way they vote, I just hope they get it right.

The departure lounge

I dismissed an employee today. And unlike Donald Trump, I took no great pride or glee in having to do it.

The guy wasn’t sacked because he did something horribly wrong or evil, or because he was a real pain in the arse, nor even because he was lazy and didn’t do much; in fact he was one of the most polite and happy people we have. So why sack him?

Because he was a passenger.

And I have learnt (the hard way) not to tolerate passengers in our business, people whose performance and contributions cannot be linked directly to achieving the company goals. We want- no, we EXPECT, our people to pursue mastery in what they do. It’s essential.

And if the don’t, can’t or won’t they are noticed, because they are ‘different,’ they become passenger’s. We have a series of measures and checks that helps us to identify passengers, including a clearly defined exit mechanism, the ‘departure gate.’

In our organisation, those who arrive at the “departure gate” are those who are just happy to meander through the days; “just doing it”. They don’t pursue mastery, they don’t contribute value. Not to me, not to their peers, and not to the business.

Such a policy is tough love; “Please go and meander along somewhere else; we are in a hurry here.” But it works.

Tom Peters quoted Michael Goldhaber in Re-imagine, and it sums up our tough love policy well:

“If there is nothing very special about your work, no matter how hard you apply yourself you won’t get noticed, and that increasingly means you won’t get paid much either.”

(Particularly if you don't have a job)

And that is the cold, hard truth. Be special, or you’ll end up in the departure lounge at your place of work.

And I hate (H-A-T-E) having to meet our people in such places.

The E-Myth Guy

I went to a presentation by Michael Gerber today. Who? The E-myth guy. Anyone who is in business and reads a little bit will know who I am talking about.

For those of you who don’t; Michael is a US based management guru (aren’t they all!) who promotes a twin pronged philosophy for creating success in small businesses. The first stems from his belief that too many owners work in their business (doing it, doing it, doing it), and not enough work on their business, hence surpressing their entreprenuerial spirit. The second is that most successful businesses, regardless of their size, operate in a franchise model. If a business has franchise-like systems that operate seperate to the owner, and not because of it, the first point becomes achievable, and the business owner can again use their entreprenuerial skill to concentrate on the business.

Which is a pretty cool way to try and run a business. Indeed creating imitateable systems is amongst the many changes my organisation is undertaking at the moment. It just makes sense; create an environment and systems so that your people can deliver “whatever” to your customers consistently well.

Using a systems approach has made a huge (big, considerable, profound) difference to our business. We now (as opposed to 18 months ago) have a framework of documented systems for all of the key activities involved in delivering our goods and services to our customers. As a result, we are more consistent in what we do, more effective at doing it and more efficient in the way we get there. The place (almost always!) hums along.

Implementing business systems is common sense really. But Michael Gerber makes a living out of this idea, and had been peddling it as his own for the last twenty years….

His presentation today was just like his book. And if you have read it, you’ll know what I mean. He waffled, he told l-o-n-g sugar coated, schmaltzy stories, yelled in strange and seemingly inappropriate places (remember, he’s American), repeated himself far too many times and entered infomercial territory on more than one occasion. But his advice is (in the main) sound, important and potentially powerful for small business owners.

So if you haven’t already, you could do worse that read his book.

Tired & Grumpy

I am tired and grumpy tonight. Why? Because I am trying to reach some people who just don’t want to be reached. But I keep trying. Am I a silly masochist, or a patient manager?

Our organisation has undergone some significant changes in the last year, and the evolution is continuing. And as the main change protagonist, I face several management challenges. Not the least being that we have 25 staff spread over four locations.

During the last few weeks I have been working at one of our locations almost exclusively. Interacting directly with the staff and exchanging information about what is happening. I enjoy it, I can see the facial expressions and tone of voice that are missed by quantitative reports. But, whilst this is an effective way to monitor organisational changes (I use some others as well), it has two key challenges for me.

The first is that it is time consuming. Toiling away at little stuff, all in the aid of achieving the big picture takes up lots of time away from my office. But I am dealing with that.

The second challenge is a bit tougher, for me anyway. Being out and about is seen by a few to be obtrusive. They interpret my overt observations as either an indication of mistrust or a lack of confidence. This is despite my reassurances to the contrary and the example of my actions and history.

I have always been an activist at work. And to be an activist you must be involved with what is going on around you, which is why I like to get out and about. I want to be part of the scene, not aloof, not turning away as though I don’t see or hear.

We (the management team) at our organisation try really hard to fill people in on what we are doing, what we are working on. We are frank and honest, sometimes too honest. For my part, I communicate as informally, as openly and as regularly as possible.

Why? Because I trust our people, I want to draw them into our vision, give them a sense of the bigger picture. I try to signal to them that I trust them by sharing sensitive information. I trust them to sort out what can be passed on and what can’t.

So why can’t I get the buy-in of some people? Why, after five years do they think I am “up to something?” Why, when the rest of their peers choose to move on, do these guys behave like handbrakes? Do they enjoy it? Is it fun for them to argue every point? To be constantly negative? To be always defensive?

I am tired of thinking about it. It makes me grumpy.

Prooving the Cluetrain

The Cluetrain Manifesto is nearly four years old; an enternity in today's world which moves a warp speed 9. But it is this passing of time that proves just how correct the Cluetrain was (IS), and how they future is panning out just like Rick Levine, Chris Locke, Doc Searles, and Dave Weinberger said it would.

Case in point; the Kryptonite Story. Here is Hugh McLeod's great little summation of how this saga unfolded:

DAY ONE:

KRYPTONITE: Our bike locks are the best.
THE MARKET: Yes, your bike locks are the best.

DAY TWO:

KRYPTONITE: Our bike locks are the best.
THE MARKET: Yes, your bike locks are still the best.

DAY THREE:

KRYPTONITE: Our bike locks are the best.
THE MARKET: Ummm... yeah I'm sure they are, but what's all this about some recent video on the net that's supposed to show how you can crack your locks in 10 seconds using a simple Bic ballpoint pen?

DAY FOUR:

KRYPTONITE: Our bike locks are the best.
THE MARKET: Hey, I just saw that video on a friend's website. And I'm kinda ticked off because I just paid $60 for one of your new locks 3 weeks ago, and I'm wondering if a Bic pen can crack my lock or not... does the pen crack all Kryptonite locks or just one or two models?

DAY FIVE:

KRYPTONITE: Our bike locks are the best.
THE MARKET: Hey, I just visited your website and saw no mention of the Bic pens. What the hell are you doing about it? Are you going to fix the locks? Are you going to give me a refund?

DAY SIX:

KRYPTONITE: Our bike locks are the best.
THE MARKET: No, they're not. You guys are assholes.

So what was the final outcome? How did Kryptonite address the problem? Did they fix the lock in the end? I have no idea. I'm just assuming their locks continue to suck. I suppose I could go visit the company website for more info, but... Eh. I can't be bothered. I'm just assuming it'll have the usual bullshit PR when I get there. "

So without warning, Kyptonite's market got smarter and faster than they did. And it only took a couple of days to unleash the full wrath....But they could have stopped it, halted it all dead in their tracks.

Wind the clock back four years and this is what Cluetrain had to say:

MARKETS ARE CONVERSATIONS

The INTERNET is enabling CONVERSATIONS among human beings that simply where not possible in the era of mass media

Markets are getting SMARTER, MORE INFORMED, MORE ORGANISED

People in networked markets have figured out that the get FAR BETTER INFORMATION & SUPPORT from ONE ANOTHER than vendors.

There are NO SECRETS. The networked market knows MORE than companies do about their OWN PRODUCT. And whether the news is GOOD or BAD, THEY TELL EVERYONE

If only Kryptonite had joined in with their customers on the conversation... I bet they will from now on (I bet they also know what a blog is now, too!)

(If you haven't read Cluetrain, get it and read it. If you have already read it, read it again (its urgent); it will make more sense this time around.)

Someone get Foxtel a new letter writer...

I received a letter from Foxtel today (the Pay and Pay and Pay and Pay TV people). It started off like this:

“We are writing to inform you of changes to your Foxtel service.”

Which of course means I am about to be paying more. But like most pro-forma letters that you get from big service providers, they can’t just tell me what the new charges are. They feel the need to tell me other things like:

“These changes reflect our ongoing intention to provide a service that is constantly evolving and which continues to offer great value to our subscribers”

What a load of sanctimonious clag. They don’t even think of me as a customer; I am just a subscriber….

“Ongoing intention”; that is a bit like a politician giving us a commitment, just because they intend to do something, doesn’t mean that they will. It’s just an empty thing that someone in their pro-forma letter writing department thinks sounds clever. And the bit about “constantly evolving”, does that mean their prices are also “constantly evolving?” Or what does it mean? Who knows.

I hate this type of corporate speak entering my world through pro-forma letters like this. This letter uses the same type of language that you see in mission statements, consultancy reports and annual reports. Why can’t Foxtel (and all utilities companies) they just write a letter that says:

“From December 1, 2004, the subscriber rates will be….”

I’ll then work out for myself whether it is “great value” and whether I continue to subscribe or not. Simple.

Almost Advancing Australia's Fair

Back in September I tee'd off at our national anthem, Advance Australia Fair:

The words and tune that make up Advance Australia Fair fail to reach any inspiring heights. It’s almost bit of a dirge:
Australians all let us rejoice
For we are young and free
We’ve golden soil and wealth for toil
Our home is girt by sea

Well, Thor Prohaska agrees:

I also came to the same conclusion that Australia needs a better national anthem. So I did something about it and created an improved version of Advance Australia Fair. I have changed half of the words but left the tune unchanged. It is now titled Australia and goes like this:
Australians all let us rejoice
for we are all born free.
We are the dreaming of this land
its spirit breathes in me.
Our home abounds with nature's gifts
of beauty rich and rare.
At every stage let history's page
treat all Australians fair.
With joyful voices let us sing
Australia is our home

(You can check the whole thing out here)

Thats a bit more evocative I guess, but still has no real attack in it, like the best national anthems do. Thor's lyrics (whilst an improvement) still fail to relay any deep, insprirational images on our idea’s and ideals.... I still wouldn't put my hand on my heart and sing it with a lump in my throught.

But I do like the "it's spirit breathes in me" bit; some more of that type of thing and we would be on to something.

(I'd have a lash at writing a National Anthem, but I struggle to write a decent limerick)

Shopping with Oligopolists

It’s great to have Steve Hannford and Oligopoly Watch back after his short break. I like oligopoly watch; I find the observations particularly relevant to what happens here in Australia. We are a little economy based on an isolated island, with small markets centred in basically two cities (Sydney & Melbourne) on the East coast. Fertile ground for monopolies, duopolies and oligopolies….

Anyway, upon returning from his Euporean vacation, Steve observed the following:

"One thing that struck me was the extent to which, in the United States, the landscape has been altered by oligopolies, and how that hasn't (yet) occurred in Europe.
What I mean is this: in the US, the streets and highways are defined by the presence of large, national or international companies in all the key locations. The cityscape of any American downtown is a series of Starbucks, McDonalds, CVSs, major banks, Gaps, and so on, with other smaller, local companies on the margin. In the suburbs the same; Safeways, major gas stations, Wal-Marts, Marriotts, Home Depots, Dunkin Donutses and their like define all the critical points in the landscape.
Local businesses do exist in the US, but they are ever more hidden, more peripheral. As national oligopolies get bigger, they impose a sameness that is overwhelming."

Well, Steve, it’s certainly starting to happen here in Australia, to a degree anyway. We don’t have stand alone Hypermarts like Walmart, but we do have an ever increasing number of Shopping Centres (or “Malls”) dominating the main roads through our suburbs. And increasingly, these Shopping Centres all look the same. They all have a department store from one of only three big retail companies (David Jones, Coles Myer or Woolworths), a supermarket (owned by the same people who own the department store) and a whole host of franchised retail outlets, from bookstores, to record shops, clothing even coffee and cake. Franchising is huge in this country and it is fuelling a massive change in our retail habits.

In every suburban shopping centre the small retailers aren’t just “hidden”, they have have all but gone; the small coffee shop has closed, replaced by Gloria Jeans (or Starbucks), the independent music shop is long gone, and in its place HMV or Sanity, the owner-operated book shop has made way for Collins Books, the sandwich shop is now Subway.... and on it goes.

Even the Shopping Centre owners are few in number (Gandel, Centro and Westfield and Lend Lease own over 92% of all suburban Australian Shopping Centres between them). Whether the centre is Southland, Dandenong Plaza, Chadstone, Fountain Gate or Bayside Frankston; all south east Melbourne, all within 25-30km of each other; the shops are pretty much the same. There is nor real point of difference between them, not special reason to go to one over the other; they all look the same; they all offer the equivalent, but limited choices.

But what we need to remember is that these franchised businesses are often owned and operated as small business by the franchisees; its just that “Big Co” (usually some oligopolist company) is now getting a lick of their profit.

Spring Racing Carnival

I saw this over at Gaping Void (=cool place to visit) and it reminded me that it is Spring Racing Carnival time here in Melbourne;

The Spring Racing Carnival is exactly like that! If you are lucky enough to go along to any of the races; you'll experience a unique sort of Mardi Gras party atmosphere. Expect to see lots of colour, excitment and beautiful people. Of course there is also the usual assortment of posers, tossers, wankers, quasi racing aficionado's and other trendy-types wearing fuzzy hats with too many peacock feathers.

They are great to look at; just don't expect much conversation beyond seedy pick up lines or slurred requests for more champagne.

And then there are the celebrities and their fancy corporate marquee's. It's the same every year, B-Grade celebrities emerge from their winter hibernation and head straight to the free booze and parties at these VIP "tents" at the race track. And then they'll spend the whole carnival clammering over one another to have their fake tanned heads and crazy, impractical fashions featured in the social pages...

Maybe Hugh has been to the Melbourne Cup?

Scissors, Awards & a Great Customer Experience

I went to get a haircut yesterday, and the salon I go to looked like they were getting ready for some big party; balloons, flowers, streamers, banners, the works. When I asked the reason for all the decorations, my hairdresser (Matt) told me that Paul (the owner and Matts brother) had just won the Young Retailer of the Year Award.

And thinking about it, I am not surprised.

Lets be honest, for most blokes, like me, a haircut is a fairly routine, functional task. You go along once a month or so, they cut your hair (“the same as last time, thanks”) and off you go.

But I really enjoy going along to “my” hairdressers, they really do try to create a great experience every time I visit. The salon itself is a fun place to be, the staff are always happy (they always great me with a smile), they have music videos playing on a big TV, and offer drinks to their clients. Now whilst this isn’t really worth any more if the haircuts are crap, it does differentiate it from other hairdressing places I have been.

I remember the first time that I went, I was asked what I wanted to drink, and was given a small form to fill in, with my likes and dislikes about hairdressers, as well as about my hair care routine, and what if any advice I would like from them (if any).

I then had the haircut – and liked it. But what was really cool was that when the washed my hair (I had never had my hair washed by a hairdresser before!) I received a really relaxing head massage.

And each time I go it’s the same; I have a great time! They remember my Birthday, send me a Christmas card, they remember how I have my coffee, and what “stuff” I use to keep my ‘do in place. I always leave feeling better than I did when I entered.

It all sounds a bit corny doesn’t it? But in my life as a customer (=consumer, client etc), such experiences are rare. So why is my hairdresser unique? Why do they stand out? Well it's no secret: it’s their culture; that intangible factor that can either be a companies competitive advantage, or competitive disadvantage. And in Paul’s case it is very much his advantage.

In addition to being pretty handy with the scissors, Paul is obviously an excellent leader who believes that workers who are happy are workers who take good care of customers. His hairdressers are always happy, alwailerays smiling and promote a special family feeling. They have some very rare qualities; they have great skills, coupled with commitment, job satisfaction, adaptability and motivation. And that is a potent mix that all organisations should strive for.

If only some other places I shop knew that creating a great customer experience starts with the employees, rather than me. First make your people happy, and they’ll make me happy…

So it’s not surprising that Paul won such a great award (beating competitors from Coles, David Jones & Woolworths). His clients get an inexpensive, but great haircut, lots of laughs and plenty of personal attention.