Strategy, Sales, Sustainability & Leadership

Do strategic platforms take into account marketing and sales as well as long term customer engagement and success? 

For me this is a core question, but the more you dig into the detail, the more complicated it becomes.  In this post I will briefly address key issues, concepts and current challenges.  I am trying to provoke your thoughts, and ask you to answer many of these questions, as I do not have all the answers, just my own perspective and viewpoints.

Whilst most strategies agree in principal on what they are trying to achieve, implementation and execution become an issue.  People get lost in the framework, but forget about the core principal of why they are in business, and what has brought them success thus far.

Let’s face it, marketing and sales must have done something right to create the success over the years, or was it purely luck?  In a strong economy when things come easy, any sales person can succeed.  They virtually become order takers.  Marketing will produce great glossy art to make everyone feel happy.  However, as we see today, in tougher market conditions the true champions are starting to shine through.  It is the individuals who have built strong networks, have the trust of their customers, can offer advise beyond what is required, are seen as experts, and are persistent and not scared to pick up the phone or visit a client.  All this supported by a good organisation, with quality products and a focus on adding value to and for their customer will provide success in the future. It’s that simple; right? Is that true?

But are our leaders forgetting about these core people that have brought the results in the past?  Are they just focused on numbers, and not on fostering the relationships with their customers and supporting them through the tougher times?  You tell me.

I believe some organisations are getting this right now, others are failing miserably.  The results are not going to be seen this or next year, the real outcomes are five or more years down the road.  So which leaders have this vision and support of the board / shareholders to ensure the long term success?  Anyone you know?

In our current market conditions, too many executives (especially in public companies) are worried about pleasing the shareholders in the short term.  Decisions are being made that make them look good right now, but the impacts of their decisions will be felt way beyond their reign, by that time they have taken another senior role to try and emulate their recent success.

So why are these executives making these decisions?  Is it purely self-preservation and pleasing the investors, or do they actually believe that they are working in the best interest of the organisation, the employees and greater community?

I addressed the challenges of short term and long term strategy in a previous post and will not re-address them here, but many of the issues raised there, translate into this post.

Maybe taking a closer look at some strategy maps will help.  Take a closer look to what always sits on top – maximise profitability and create shareholder value.  How come customer value and your own people are down the bottom?  Yes, you can argue you need them down the bottom to create the solid foundation to achieve what is on top (like a brick wall you want to make sure all brocks are properly in place), but are we forgetting about this core as the processes are implemented?

I have had a look at many strategy maps and have included some here as pictures (Kaplan, Mobil, Rockwater, Blue Ocean, etc).  They all focus on the same areas; some go into more detail, some are vague.  But what does it all mean?  Anyone can come up with a map.  The challenge is on how do you relate this to your organisation, your people, and how do you execute the strategy?

Focus areas commonly are:

• Your workforce, how to train them and engage them
• Internal Processes to achieve the above
• Creating customer value
• Focus on products and services
• Growth, growth and more growth

As mentioned earlier, these maps are frameworks.  Often very complicated, but they all want to achieve the same outcomes.  It is like asking the question of what is the world’s longest formula.  The reality is that we can create more and more complex (but still correct) equations without bound.  So we get the same results by overcomplicating simple issues.  Essentially any equality can be made longer by adding identities.  Isn’t that what we are doing?  Isn’t that what I have done in this post?  I have taken a whole lot of questions, and provided many answers and more questions, that in the core all lead to the same results.  I could have probably done this in five short bullet points, and I’m certain that there are many people out there, much smarter than me, who could provide us with these :)

So, to summarise I will try to at least address how we can avoid some pitfalls in my opinion.
If we are considering a total strategy revamp, the transition phase is where we will come up with most challenges, and this is often where the biggest failures occur.

The failures may start in the design of the strategy, but are often failures in the process. Kaplan and Norton (The Strategy Focused Organization) address these failures with a direct link to balanced scorecards.  However the two first points mentioned are “lack of senior management commitment” and “too few individuals involved”.  These two arguments will resonate with many of you.  Strategy is often set a high level, without consultation of the people who make the organisation tick.  Since these individuals are not involved in setting the strategy, they do not own it, and as such will struggle to buy into it.  People get extreme satisfaction of being involved in a process and having their idea heard, and some of them implemented.  By owning the project, the individual will work for the project and with the team towards success; the individual can be measured and held accountable, creating a win, win situation.  Easier said than done, right?  Well, why don’t you give it a go, and let me know how it worked out for you.

Do you work for a 3BL company?

The triple bottom line (abbreviated as TBL or 3BL, and also known as people, planet, profit or "the three pillars") captures an expanded spectrum of values and criteria for measuring organisational (and societal) success: economic, ecological, and social.

Company Culture

Through Principles learned from some of the “best companies to work for” and “most successful companies” we help you focus on the cultural clusters in your company that can help you grow, implement new strategies and become more productive.   We help you with the introduction of tailored solutions to change non-practical cultural believes, and get buy in from the front line through to senior management.  We stay involved throughout the whole process, enabling the best possible outcomes.

Change Management

Change can often be difficult and met by resistance.  We help you fully understand change, what is required, help you map out the path, and support you through it, just like in a successful partnership.

Employee Engagement

The key here is to not only have your employees engaged, but for them to manage up and create innovation from within.  Employee engagement will also reduce absenteeism and staff retention.

Staff Motivation

Most people have something that drives and motivates them, and in most cases it’s not the same.  Establishing whether people are extrinsically or intrinsically motivated, and finding out why they are at work, will aid in creating a better workplace where employees look forward to showing up.

Team Leadership

Starting with leaders understanding themselves through “self-evaluation”, understanding the EQ’s SQ’s (emotional and social quotient) etc., understanding the difference between leadership and management, and how to get the best from your staff are only some of the factors we focus on.  Our program cannot be successful unless we have total support from the senior leadership team down, as well as from the front line up.  Lean culture and lean leadership are two key components in the journey of become a great leader.

Systems & Processes (Lean Six Sigma)

Lean Six Sigma is todays buzz word, but in essence all we are talking about are principles found in Lean and Six Sigma.  There are many other tools, but at the end we investigate if a process that is in place is really the best means to an end.  We may find that there are a few steps to many, which make it inefficient.  We may look at the supply chain and find areas to save time, money, reduce inventory, etc.  This will create savings due to the removal of wasteful practices.

Productivity and Efficiency Increases

Through a combination of all of the above we are able to help you target specific areas in your business that will most benefit in the short term, as well as a focus on the big picture and long term sustainability of the business. 

Environment and Sustainability

With carbon taxes, global warming, utilities and transport costs all affecting our bottom line, we can take a closer look at the triple bottom line (3BL).  People and profit will be targeted through the areas above, and planet will be included early on to ensure any change incorporates environmental responsibility and sustainability, without any major cost impacts on the business.

Our approach 

in assisting your business is based on an initial business audit, a 360 degree review, a systems and processes audit, people audit and much more.  Below are some of the key target areas and some very basic explanations on what we do.  We could discuss each and every one of these points over many pages, but we’d rather meet you and find out what most concerns you in your business.  What are you or your employees losing sleep over?  Once we fully understand where it hurts, we can target these areas, and through root cause analysis drill down into the whole value chain of your business (from suppliers to end customers), to ensure a measured approach in line with your business strategy.

Last, but not least, we have the added advantage of not only being a specialist consultancy firm, but through our RTO (Registered Training Organisation) arm, we can structure our programs to include your whole organisations training requirements.  Whether it is accredited and nationally recognised training, skills cluster training, or purely non accredited specific skills in areas like sales, procurement or finance (to name a few) to address any areas above and make you an even more successful business.  If you are in Australia, New Zealand or Great Britain that furthermore means that we can access to a number of government initiatives to support some of the programs on offer financially.

If you have read through all the above, my guess is that you have nodded at least a couple of times.  Are you ready however to drop me a line or give me a call to set up a meeting over a coffee to start the conversation on how we can add value to your business?

Culture, Productivity, Kaizen, Lean, Business Improvement

All the above are current buzz words, especially productivity.  No matter which of these areas we focus on, I think we would agree that leadership is of utmost importance.

When talking about the above we mention empowering individuals, and allowing for innovation from within.  But how can we achieve this without effective leadership, and a culture that thrives on the excitement of being involved in creating a better department, company or economy.

The Australian prime minister’s task force came up with a report on manufacturing entitled “Smarter Manufacturing for a Smarter Australia”. (http://www.innovation.gov.au/Industry/Manufacturing/Taskforce/Documents/SmarterManufacturing.pdf)

While looking at the challenges that face the manufacturing sector, the report also focuses on the opportunities that this creates.  It discusses the importance of manufacturing to Australia, the economy and most importantly our people, you, me and our children.

One comment in the report, also made directly to the Prime Minister, Ministers Combet and Shorten was: “We are particularly concerned that leadership and judgement is brought to bear on the ‘perceptions issue’ about Australian manufacturing.”

Again we are talking about leadership and judgement, but the report further outlines the importance of broad-based Australian economy, built on competitiveness, productivity and innovation.

Figure 1.1 below highlights the importance of policy in achieving the above objective through a strong direction created by a solid strategy.  The total report spans over 117 pages and contains detailed data on the manufacturing industry.  I would recommend that you have a good read of it, if you are interested in the future of our country.

Figure 1.1 SMARTER MANUFACTURING FOR A SMARTER AUSTRALIA – POLICY FRAMEWORK

The bottom line however is that while policies can be set, strategies discussed, and recommendations presented, it is up to the individual’s leading the businesses within the sector, as well as the ones supplying the sector, and finally the consumers to ensure the path is sustainable.  Associations and industry councils, advisory boards, the education sector and we as individuals also play an important part.  We all have a hand in shaping the future of this country, as insignificant as it may seem.

At the end of the day, it will be the voice of many that will create a better future.  I think none of us can be under the illusion that it will be easy.  We must accept that severe changes will be required about how and where we do business.  And the “pessimists” must stop the negativity and winching, and should focus on the opportunities that are presented to us.  The faster this happens, the sooner we will move on.

Change can be exciting, although scary at times, and it will mean entering a zone that we are not comfortable with.  But if we are big enough to accept that there are other options, and that we need to open our eyes, we will be able to see the light at the end of the tunnel.

There are many tools that will help us achieve better productivity, leaders, culture and so on.  Not all will work for everyone, but they will allow individuals at the front line to help pave our way to the future.  Together with the right leaders these individuals will create companies that are efficient and sustainable.  There are already many programs available to businesses that will support change financially.  These could be initiatives to support sustainable practices, reduce environmental impacts, or purely arm individuals with the skills required to affect the necessary changes within industry.

For more information on initiatives, leadership, or any other comments, please contact me at Chase Performance on 1300 880 338.  I am located in Melbourne, but regularly visit our offices in Adelaide, Perth, Brisbane and Sydney, and am always happy to have a chat and discuss any of the items above in person over an Espresso.

Best regards

Roland Weber

The Change Leadership Sustainability Demands

I believe we all agree that sustainability goes beyond and encompasses a much broader area than just environmental aspects, and change in all of these areas are necessary to sustain business growth and the economy. As I understand it we are putting environmental sustainability on the forefront for the purpose of this module and course, as a major part of it is driven by other areas of business.

 “The Change Leadership Sustainability Demands” refers to three distinct stages”. (MITSloan Management Review, Summer 2010, Vol. 51 No. 4, by Chrisoph Luenburger and Daniel Goleman)

Phase 1 – Making the Case for Change

I would refer to this as how to prepare to bring about change. One of the most important parts to get buy in is to get wins on the board quickly. This cannot always be done easily. Most people associate sustainability with huge costs without any direct payback. The introduction of the carbon tax in Australia since July 1st will certainly change this mindset somewhat.

If we break down Phase 1 into several steps we may look at something like this:

•             Be convinced that change and sustainability is necessary

•             Consider the present and future and analyse change accordingly

•             May the change be resisted and why

•             If so, how can fears be addressed and dealt with

•             Work on a detailed plan

•             Benchmark against competitors

•             Ensure others are involved

Now, I agree with Ralph (fellow student), that all this has to be driven by senior management, and fully supported to succeed. However, often, senior management are scared to make these decisions, and if they are seen to be hesitant, the change mechanism is most likely doomed.

Phase 2 – Translating Vision into Action

Basically we are now discussing implementing the change, if we have been successful in establishing our case. One comment of the article is that “executives who are effective in Phase 2 tend to be comfortable with the distinction between the ideology of sustainability and the sustainability goals that the organisation seeks to achieve”. What do we need to be successful in Phase 2.

Again, I’d like to break down Phase 2 into several steps:

•         Always remember the basics of good change management (people will go with the       flow or if change is really required, people are more likely to change if they are actively involved, people generally resist orders or surprises, people like to feel secure, people cannot be treated as objects, change can sometimes take time)

•         Therefore as in Phase 1 ensure people are involved in the whole
           change process

•         Ensure that people understand as much as possible about
           sustainability

•         Making sure that staff are fully aware und understand as to why we are implementing these particular changes

•            Highlight, Promote & Sell the Benefits

•         As a leader you want to be seen as fully enthusiastic and driving the change, failing to do so will most likely result in the staff not believing in it either

•         Ensure that the staff are armed with resources and tools, and offer plenty of support throughout the change period and beyond

•         Deal with one project at a time, and celebrate wins, therefore building a positive track record

•         Empower everyone to have continuous input by regularly discussing new ideas and initiatives

Wow, it all sounds so easy, but is it? If you are entrenched in a company which has employees that have been there for many years, these individuals can be your greatest supporters or your greatest opponents. It is important in my eyes, to involve them, as the “newer” employees are more likely to join the bandwagon. These individuals will come up with excuses like, “I’m about to retire, what do I get out of it”, or “why change now” and many more. The true challenge for the leaders is to harness these employees to make them supporters. And I strongly believe that herein lays one of the greatest challenges.

Phase 3- Expanding Boundaries

We are now talking about a strong strategic orientation and competitive advantage, however we often find that the competitive advantage may not crystallise for many years, as the rest of the market or world play catch up. Regulatory changes will help drive the changes, but we also know that politicians are supported by large corporations, so change will still be slow. Even with the carbon tax introduction in Australia, the opposition still promises to abolish it as soon as it is in power. The opposition is also backed by some major corporates. Therefore if the support from our “main leaders” isn’t there, how can we expect our staff to fall in line? At the end they are generally confused and unsure. So a leader changing direction and working against the direction the company had previously taken will be even more so difficult.

I have also thought about Phase 3 in regards to some more elementary points:

•         We need to look to the future and stop holding on to the past

•         We don’t see issues as problems, rather as opportunities

•         Our strategy needs to encompass us being able to cope with the change (be aware of the four phases of the change cycle – denial – resistance – exploration – commitment)

•         Understand the change is continuous and nothing is permanent

Understanding the principles of change will help implement any new strategy including sustainability. But let’s not kid ourselves, it is a difficult and long journey, and not for the faint hearted.

The focus needs to be on environmental sustainability to ensure there will be a world as we know it for generations to come. Technological advances will play a key role in these as well as the smarts of our leaders.

The key question for this module is the change leadership that sustainability demands. We have discussed leadership in detail, and I think it's great to combine it now with the sustainability part, as they work hand in hand. Without strong leadership basics and understanding, a leader is ultimately going to fail, especially when embarking on the sustainability journey.

It is a fine balance between a business being profitable and sustainable in all areas, or it failing.

The following link is for an article titled "Mining and the environment: the future of Australia’s brand". It discusses the questions raised over environmental impact versus the environment and business areas that are directly and indirectly affected. It is a great independent view and read, and once again shows the dilemma politicians, corporations and individuals face when trying to create a sustainable future.

http://www.miningaustralia.com.au/news/mining-and-the-environment-the-future-of-australia

I would agree that sustainability is not a destination, but would call it a journey rather than direction, although direction works as well.

I love “the learning to work in systems diagram” (Zeri system), looks simple enough once you understand it, but there are many players involved, and they all need to be individually driven towards the better outcome and goal. They all have to embark on the journey.

This is also where “lean” crosses with “sustainability” Lean is all about reducing waste, sustainability takes it to the next level. The first principals of lean are the 5 S’s (you can read more about this on my posting: http://leanimprovement.blogspot.com.au/2012/04/what-is-5s.html)

The article for me proves that it is great long journey with continuous improvement required.

Our Professor asked: “Can we hold our leaders accountable for sustainability?”

Absolutely, they are the ones that need to drive it, without being driven from the top down, change will never happen. CEO’s are financially accountable, and in this new age environmental accountability falls in the same category for me.

Leadership and the "Three Levels of Intelligence"

Because I see leadership as a key area of Lean Six Sigma and as part of my MBA in Leadership and Sustainability with Robert Kennedy College and the University of Cumbria, I discussed my own view on successful leadership by examining the effect of the “three levels of intelligence” on leadership.  Please feel free to send me a note if you agree or disagree with parts of the following article.  

Intelligence is traditionally measured by the Intelligence Quotient (IQ). Charles Darwin was estimated to have an IQ of 153, Albert Einstein 160 and John F. Kennedy around 120. But IQ is off course only used as an indicative estimate of the ability to reason logically. While IQ is still very much a factor of becoming successful in most areas of business, it is not of sufficient value for corporate success and will not ensure or even guarantee that you will shine above others. 

I can personally relate to the fact that a good IQ, or being well read even educated, can help you build a strong foundation but will not make you the bee of all. 

Emotional Intelligence Quotient (EQ) 

There has been much talk about EQ of late, and it certainly seems to be the flavour of the decade. With the key factor of EQ in my eyes being yourself awareness, made up from confidence, a realist view of one’s self, and not being scared of making fun of you, we can apply the above in various ways to make our daily life easier. Applied in the correct situations these can build great first and lasting impressions, and will make people around you feel at ease. Care has to be taken on when to apply which. I would be very careful about making fun of myself, when in a room filled with people of a strong cultural background that differs significantly from the traditional “Western View”. Although when you ask people in their sixties to eighties, they would argue that the western world has also changed and become a lot more accepting, and as such I would be cautious when surrounded by very Senior leaders with these ideals. 

One thing EQ will help you with is to read these situations correctly, so as to apply yourself in a manner acceptable, with the most successful outcomes. 

This brings me to the next cornerstone of EQ which is directly related to self-awareness and works well in conjunction with it, self-regulation. Knowing your limits will help you create trustworthiness and integrity. You will be comfortable in even the most ambiguous circumstances, and be open to change. I will go into more detail on this later when discussing the ability to adobt and change. With the combination of the two items above, we are strong enough to build the foundation of our motivation and drive, having an optimistic outlook, yet realistic in approach, and a full commitment to the outcome. 

Now this is where we start to tap into leadership. Taking IQ and these first few important parts of EQ, we are building a strong foundation, which displays openness, understanding and energy. However, this is where I believe many leaders fail. They stop there, and feel this is enough for them to succeed, forgetting that there are many more elements to be considered before we can call ourselves a well-balanced successful leader. 

Now although I would still include this following part in EQ, we are relating it to the social quotient (SQ). 

One area where many leaders, and some very ruthless ones fail, is empathy. This will result in not being able to sustain the great first impressions created, and dragging people with you in your “slip stream” of drive. In this world cross-cultural sensitivity is more important than ever. Living in Melbourne this is displayed on a daily basis, with the many cultures who have found a home in Australia, and kept their values. Without empathy, not only will we fail with our “internal customers” but we will also struggle to service our “external customers”. For me empathy is something that comes naturally, but for many people that have not lived in different environments, and/or have not encountered issues beyond their comprehension it is not natural, and this can often be seen as rude and provocative, although these individuals would not understand it, or even comprehend that this is what they are in fact doing. 

If you have ever come across a leader, that is very good at strategy, and running a tight ship, but will not listen to the voices of the customer (both internal and external), you will generally see the frustration that this creates around this person. And although they may have a tick against all of the above, if they fail with empathy, they are most likely doomed as a well-balanced manager, but could still have significant success in other areas. 

This brings me to the last point, the ability to adopt to change – or the change quotient (CQ). 

I briefly discussed the influence of self-regulation earlier which forms the foundation for the ability to change yourself, therefore enabling change around you. If you cannot change yourself, you would find it very difficult to change others around you, or even recognising that change is actually happening all around you. 

Not everyone is comfortable with change, let’s face it, we all get caught up in our every-day lives and routines, and it often takes a lot of strength to do something different. There was a song or ballad around in the 90’s, and one line was, do one thing different every day that scares you. This can be as small a thing as changing the way you get dressed, taking a different way to work, trying different food, wearing clothes that were traditionally seen as not matching. If you can get over this little hurdle on a regular basis, your eyes will widen. I have been practicing this for years now, and although I wouldn’t do it daily, I would relate it to my business world, and try unconventional things. 

One area that I have not discussed, and that sport has taught me is that you need to listen to your mind and body. The more you know about your well-being the more you can feel and take care of it, the more likely you are to translate this to the world and people around you. To many this may seem unrelated to business, but your physical state can affect your work, as it does involve how you feel and look which is directly related to confidence in most cases. Your drive and energy can be directly related to listening to your body, as if your energy levels drop, your mind will slow, and you will go through what most people refer to as “burn out”. Therefore I do believe that this is an important factor to be considered as well. 

In Conclusion 

We are only discussing a very small but integral part of successful leadership here, and I believe there is a lot more to it than just these items. These items do however form the foundation of a successful leader. Depending where this person is in their career, personal life, where in the world geographically, the type of organisation, etc. also play a heavy part in combining the above. You will find that some areas are more relevant in certain cultures than others, and are practiced and applied in different ways. 

A strong and successful leader will know how and when to apply his or her different levels of intelligence for the best outcome. I don’t believe there is one uniform way, or one glove fits all situations, as we are all different. This is the beauty about our world, as when we combine these differences, and listen to the other voices and are able to adopt, we become stronger by the day, resulting in better leadership at all levels. 

Best regards
Roland