Really interesting presentation that makes you think on HR policies and performance.
http://www.cnn.com/2010/OPINION/03/02/pink.motivation.bonuses/index.html?hpt=C2
Really interesting presentation that makes you think on HR policies and performance.
http://www.cnn.com/2010/OPINION/03/02/pink.motivation.bonuses/index.html?hpt=C2
Some years ago, I got the project to set up a fish processing operation in Klemtu on the central coast of British Columbia. Some agreement had been made a couple of years earlier, as the whole project started with the set up of fish farms.
For the processing, we needed to not only equip the plant, but also train the staff of this small coastal community isolated on an island with no road connection to the mainland. Therefore, the logistics were quite adverse: an isolated island with about no choice of carriers except the one that had been appointed on a sea that is often dangerous to the point that barges do not even venture on it. The risk was that the fresh fish could be stuck and not be delivered on time. Of course, that would have been unacceptable for our customers, who were located thousands of km away.
When it came to the facilities, the local community was providing for the plant, meaning a very basic building with no specific equipment for salmon processing. In the plant’s yard we had to browse through a pile of old tables and pipes to figure out something. Since volumes were starting rather low, it would not have been sensible to buy automated processing equipment, because the cost per pound of fish would have been horrendous. Further, the isolation of the place would have made any call for a technician about useless, as it would have taken him a couple of days to be on the premises. All the work was to be manual.
The equipment was probably the easiest part, though. We needed to train the staff to modern food production and educate them about to all aspects of food safety and quality, as they had never been exposed to this. Everyone who has dealt with First Nations knows that they are dealing with a number of social issues and poor physical health and condition, unfortunately the result of past colonization and the destruction of their traditional society. As such, this exercise was a great way of merging two worlds and recreating a feeling of community between this village and the international food business including large retailers and food service companies in the US and Canada.
We developed the training program covering all theoretical aspects as well as the practical realities of fish processing. A few chosen crewmembers were sent to an experienced fish plant to get exposure to modern processing. We set up an exam to have an incentive for the potential employees to study our material. As it appeared the day of the exam, half of the students did not show up and someone explained to me that some felt uncomfortable with writing. Of course, this was an awkward situation and there was a chance of losing some of the workforce, which is not good when that workforce is already limited, and replacement not easy to find. I turned this around by giving only one collective grade. After all, I had repeated so many times that this would be teamwork, what better example could I find to illustrate that than giving the team the grade, instead of individual marks?
Considering how important it is to gut and cut the fish properly, I was more interested in the quality of the work than the productivity at first. Once they would master the technique, we could think of increasing the pace of the processing line. So, we started with the equivalent of half a truck the first day, and the second half for the following day. In a normal plant, a full truck was processed in five hours in those days. I was expecting that our first half load would be done in eight hours at most. The reality came out quite differently. After two hours, the staff got physically tired and I could notice that moment when all the shoulders started to drop. After eight hours, many of the workers went back home because they were tired. We finished the first production day in thirteen hours! The second day was even worse with some people not showing up at all, and it took 23 hours! The situation looked lost. However, my sense of persistence made me refuse to give up so quickly. I re-planned the next round of harvests to be only a third of a truck per processing day. This was the magical number, and from there, our staff was able to work within normal hours, and get more productive, while producing the proper quality. Within two weeks after this, they were able to process a full truck in 9 hours! What a turn-around! As production volumes were increasing, we were able to justify for the purchase of machines to help speeding up the operation and by then we were able to process fish as quickly as any other regular plant.
As time went by, some of the locals showed capacities to take charge of more and more things, and even the original agreement was clearly that management activities had to be carried out by non-locals, we created several positions that they could fill successfully.
Yet, beyond the business case, the most valuable experience for me had been to see activity coming back in a community plagued by 80% unemployment before this project started. Getting work did not only give them money, but it helped them become healthier, with many of the employees recovering from diabetes. The most important of all was a boosted self-esteem, as they found a new purpose in their lives.
They felt successful, happy and fulfilled again!
Copyright 2009 The Happy Future Group Ltd.
This is an interesting article from Economist.com about the Japanese way of getting out of your office and about having a look at what is going on in the plant.
I like the part in which the author tries to compare the Japanese way and the American way. In my opinion, there is not much point in doing that. The best is to review what the strengths of both approaches are and build an even better system from there.
If you want to be an effective manager, you need to have an hands-on approach!
In no particular order, people who are happy at work show the following symptoms:
They are happy to go to work; they do not suffer from stress or fear about it.Copyright 2009 The Happy Future Group Consulting Ltd.
We all know the feeling of having to deal with an emotionally loaded happening or decision, or when we need to communicate about something emotional for the other person(s).
The main problem is to be able to see the rational aspect of what we are dealing with in a moment when we have lost this ability to calmly analyze and put things in perspective. Our brain is reacting in the here and now and what leads us is to escape the situation as well as possible immediately. In this process, we rarely have the ability to think about the consequences of our behaviour.
Controlling one’s emotions
Although this is quite difficult for some people, the best way to start reacting is to not react, because your reaction can make others react back to you and there always is a risk of escalation. Before saying or doing anything, try to get as much information as you can by asking questions or even by keeping quiet. Generally, being silent is a great way of getting others to do the talking. Do not be afraid to ask for suggestions and listen before reacting on the answers.
Two emotions always can get you in more trouble than serve you: anger and fear. In both cases, the ideal way to deal with your emotions is to buy some time before reacting, in order to relieve the impulsivity and start to get a look at the larger picture. If possible, allow yourself a night of sleep before completing the process. It will calm you down; it will allow you to start thinking more rationally and put things back in perspective. It also allows you to develop your own plan on how to deal with the matter that happened to you.
Connecting with another person’s emotions
Although you are not dealing with your own emotions and you are in a position of thinking rationally, this situation is not any easier. The key here is to be able to literally get on the same wavelength as the other person. To do this properly, some empathy is obviously a great asset, but empathy alone is not enough. You need to assess the level of emotionality involved, and adjust your level of rationality accordingly. The best way to connect with the emotional person and to identify how intense the emotions are is to let the person vent and express what is causing the trouble. S/He will feel comfortable with this, because you create the conditions for it. Ask questions when necessary but do not make this an interrogation. Also, realize that, in an emotional interaction, verbal communication is a lot less effective than in a rational conversation. Therefore, your body language is quite important, which makes it even more important that you are sincerely willing to listen and connect. Since when it comes to non-verbal communication, the body follows the mind, any lack of sincerity on your part will probably be perceived.
Once you have connected, you will be a position to lead the conversation and, one step at a time, bring it back to increasingly more rational level. You will know that you have completed the process when the smiles come back and you reach an agreement on the next step.
If you are interested in this subject, feel free to contact me.
Copyright 2009 The Happy Future Group Consulting Ltd.
We all know our reaction when things go wrong. We ask why. Why me? Why now? And more similar question that tend to try to find out the reason behind the unfair treatment we perceive.
In business, when things go wrong, the same thing happens. Your boss asks you lots of questions to find out the reasons of the poor performance. During press conferences about company results, the CEO is always prepared to give all explanations about the cause of the problem. Typically, the causes of underperforming are generally found in challenging “market conditions”: the world economy, the value of the dollar, the price of oil, market oversupply (which by the way is created by the industry itself and is usually the result of overoptimistic planning), etc…
But what happens when things go right? Do we try to analyze the reasons things are going our way? Do we wonder why these good things happen to us and why now? Generally speaking the answer is “no”. We simply take it for granted and we consider it the most normal thing in the world. Yet, there has to be reasons, just as valid as the ones we find for setbacks. To get back to the example of the CEO during the press conference, great results will rarely be attributed to the world economy, the value of the dollar, the price of oil or a market in short supply. Next time listen carefully: great results generally are the results of a great management team executing superbly a great strategy!
The main problem with our attitude towards good things happening is that we actually do not learn from them, or at least we learn very little. This is quite a different situation when things go bad. As we all know, there is nothing like learning from our mistakes to build experience.
So next time you deliver a better than expected performance, you certainly must enjoy it and give yourself a compliment about it, but do not forget to analyze why it did happen. Find out the reasons within yourself or your organization, but look for reasons in the conditions that played around you during that period. Carry out this analysis with the same thoroughness as when you analyze poor performance, and do not exclude any reason beforehand. Maybe the outcome will not boost your ego as much, but avoiding complacency will help you stay on your toes and avoid making mistakes. The benefit for you is that you will increase the odds of repeating your top performance on a much more consistent basis!
Copyright 2009 The Happy Future Group Consulting Ltd.
In sports, everybody knows the importance of having a group of talented people who can play together harmoniously for the interest of the group. Not only must the team members be good at their specialty, but they also must have the understanding of the other players’ needs and skills, so that they can create for them opportunities to score. Moreover, everybody understands in sports the crucial role of the coach to create the proper interaction to achieve success. Terms as goals, help and support are common.
In business, having such cohesive teams, although always mentioned as very important, tends in many cases to be suboptimal. Many companies perform below what they should and could perform, simply because the interconnection and the fostering of the relationships are very often neglected. It almost looks like everyone sticks to their job description, on which by the way the nature of the interaction with colleagues is not even mentioned. Recruiting people and telling them what they have to do without telling them with whom and how to achieve the goals together will simply not deliver good results. When you take a look at reward systems, you will see that it generally never include collective goals, except the very general profit. Most of the time, bonuses are based on individual performance indicators that usually ignore the performance indicators of your direct colleagues.
So, how to achieve superior performance and build cohesive teams across departments? Actually it is rather simple, at least in theory. Just copy what they do in sports. They draw charts about the strategy to reach the goal and beat the opponent. They review it together, and everybody gets to hear what their specific role is going to be. They will have to pay attention to what the adversary’s moves are and they will develop alternative strategies to deal with them. Everyone in the team knows their function, and most importantly they know what their fellow team members will do for them and also what they expect from them. Further, the coach is present on the sidelines and is very vocal giving instructions at once all the time as the game develops. Unfortunately, such a presence and such a hands-on support are often missing in business, because the coach is in a meeting.
Of course, running a business is not quite like playing the main event game, but they are simple ways to create that sense of support and quick reaction to changing situations and applying alternative plans. One of the most effective approaches to create cohesive teams in business is to develop the supplier-customer partnership at all levels of your organization (see our presentation about this subject). Everyone must know what the colleagues needs are and must communicate what their own needs are as well. This shortens discussions as there is clarity created beforehand and it also enhances a sense of anticipation by all participants as they will recognize what to supply their team members with in a timely manner. Last, but not least, creating and sustaining cohesive teams requires a strong hands-on leadership (read Presence: the prerequisite for leadership).
Copyright 2009 The Happy Future Group Consulting Ltd.
Most of us have heard about the KISS acronym. For some reason, it is usually described as “Keep It Simple, Stupid” which I have always found a bit derogative. I prefer to read it as “Keep It Short & Simple”.
Short and simple truly make life easy, and generally speaking things that work the best in life are the simplest ones.
The advantage of simplicity is that the message is easier to understand by more people. When you explain something in simple terms, it will take you much less time to convince the other party of what you are telling them and they will be more prone to follow your instructions.
The advantage of keeping things short is that it saves you a lot of time that you would waste in long and probably complicated explanations that you would have to repeat before the other party gets the message properly. By being short, you also will increase the impact of your message. Remember that short is what slogans are made of, and that people tend to forget information quickly.
Hopefully, this was short and simple enough!
Copyright 2009 The Happy Future Group Consulting Ltd.
On such a beautiful warm and sunny day, all I will write is a little joke that came up to me while having a conversation about this topic recently: “Micromanagers are called that way because they are very small”.
Copyright 2009 The Happy Future Group Consulting Ltd.
While there are many books written on employee satisfaction, not much seems to be told about what makes bosses happy in their jobs. Maybe people assume that bosses are happy because they are bosses, or maybe they assume that bosses do not need to be happy.
Yet, a satisfied and happy boss is very important for an organization, because the boss’s personality and mood is quite contagious. You can be sure that a bitter boss means lots of bitterness and tension on the work floor. Therefore, a happy boss is an absolute necessity in order for a company to achieve superior performance.
To get a happy boss, just think in reverse of what I have just said, and think what could be so contagious coming from employees that will make him/her feel great.
What is it that the boss really wants? He/she wants to look like a great boss! This means that he/she can show superior results and that people who get in contact with the company will say good things about it and about him/her. This were it gets tricky, because lousy bosses will never create such a momentum among their employees. In fact, being happy is the sign of a talented boss. Therefore, it will all start with the person at the top.
This is a person who has the ability to be self-motivated and with a positive attitude towards life and work. He/she brings this to the workplace and communicates it to the employees. The boss’s competence shows already in the choice of the staff. He/she wants to be surrounded by quality people, and because of their abilities, the leader knows that they can be trusted and that all they need is clear and stimulating instructions. By delegating to good people, the happy boss is able to obtain better results faster and make the company grow faster and stronger. This dynamics of success feeds itself, as everyone can see the results. Customers are more prone to do business with this company, and talented people are interested to work there.
No wonder the boss is happy!
Copyright 2009 The Happy Future Group Consulting Ltd.
Here is the best anti-stress medicine I know: laughter. I have applied it in my professional life as well as in my personal life and it works superbly, and there is no negative side effects known to man.
I have spent a long part of my career in industries dealing with perishable products. Per definition, such products cannot be stored for very long and this makes the business dynamics quite intense, and often stressful, as “everything must go” and for a profit, mind you. Therefore, my assignment to them, next to (or I should say as part of) doing the job was to make me hear some laughter. It did not matter what the reason would be, as long as there would be fun. In that line of work, we were lucky to be able to find many reasons to laugh because we were dealing with colorful characters and we could easily find the funny absurdities of the business. The head office would involuntarily also provide for much material to us as well. If my staff would not laugh frequently enough to my liking, I would pop in and bring some craziness of my own to help them out.
The results were amazing. With a small team (comparatively to other units of the company or to competitors), we were able to deliver a performance second to none, we were able to solve more problems than the others were, and we were having fun. Even as we worked long hours, nobody burned out. On the contrary, success was constantly bring new and more energy to our team. Once again, the boring, unimaginative and bureaucratic HR department was wrong.
Managing is getting things done by your team. Therefore, you had better take good care of your people, and the best way to do that is to have them laugh on the job. It means that they are having fun, and when you are having fun at work, it does not feel like work. Good managers know what is right for their business. Have them laugh!
Copyright 2009 The Happy Future Group Consulting Ltd.
That is a question that I have found on the LinkedIn group “Executive Suite”.
I love those questions, because there is an army of consultants and specialists and experts showing off all they know, and their comments are incredibly detailed.
But the reality is much more simple. Employees, especially the great ones, do not leave the company, they leave their boss.
High turnover, especially of great employees, is the best indicator of poor management!
Many companies use the “grandfather” principle, but in reality, when there is a problem between the “father” and the “grand child”, grandpa almost always backs daddy, while the departure of great employees should tell him that daddy is being naughty, and daddy should be reprimanded. But that rarely happens, and the grandfather principle is kind of a joke, really.
But one thing is sure: when great employees leave, the average quality of what is left decreases, and the company is heading towards the ground.
I have seen that just too many times, in color, 3D and dolby stereo.
The good thing about it is that companies who appreciate talent always win in the end!
Copyright 2009 The Happy Future Group Consulting Ltd.
This is the second article from my dog Slider. This time she shares her views on how to recruit a proper boss.
Dear readers,
At first, I thought that I would deal with recruiting the boss in a similar way as bosses recruit their employees: by asking for a resume.
Unfortunately, this appears rather useless very quickly, as all the candidates refer to the same great things about themselves. They have had experience with or owned dogs in the past and they can walk on two legs! For how impressive their skills and experience are, for a simple dog like me, this is not convincing, and that by a long shot. It does not tell me much about their qualities as bosses and from my experience, I am more stable on four legs than on two, so that particular skill might even be overrated; and I, too, can do some impressive tricks.
So, let’s forget the resume, as it not giving me the right information and let’s try to see if a personality test would work better. In my doggy world, we establish who the leader of the pack is in a very simple and primal way: the more dominant one leads. Could it be any simpler than that? Although we need to take a slightly different approach with people, establishing a relationship dog-boss follow a rather similar process. We will accept you as the boss only if you are able to earn our respect. Look around and you will see all those dog owners who failed to get to that point: they simply do not have us under control. We run away, we pull in a different direction than the one they want us to go to, or we are aggressive. In short, we behave badly. Well, that is from the boss’s perspective. For us there is another truth: we behave that way because we have no boss. There is no one we respect enough to follow, so we set our own course. Does that sound familiar to you humans? Interesting, isn’t it? We do not have the ability to do politics; neither do we have any awareness of our pedigree. Therefore, respect is about all we have. Also, remember that you do not spell respect F-E-A-R. If you lead us by fear, we probably follow because we prefer to avoid the consequences, but we will not like you, we will not respect you, and when the time is right, we will turn against you; unless we just become dysfunctional and neurotic, as I have sometimes seen.
Of course, there are those who think that buying us is enough to make them our bosses. No, it just makes them our owners. We do not feel too much for hostile takeovers. The merger and acquisition process needs to happen in a firm and effective manner. Of course, some bosses deal with the problem by getting rid of the “difficult” ones among us, but they probably will experience a similar situation with our replacements anyway.
To conclude, I will sum up like this. In order to be our boss, you must demonstrate that you indeed have the ability to lead the pack, which you only will do effectively by earning our respect. Being a two-legged creature or repeating us that you are the boss is simply not enough. Once you have earned our loyalty, you will be amazed by how much you will get in return!

Next time, I will return with Part III: Leading the Pack.
(The opinions expressed in this article are those of the dog only, and do not necessarily reflect those of the Happy Future Group Consulting Ltd, although they usually do.)
Copyright 2009 The Happy Future Group Consulting Ltd.
Nowadays, about every company has a Mission Statement. It has become part of the business culture and it is included in every business plan.
In many offices, you can even seen it framed near the reception desk.
And yet, those mission statements, for as sophisticated as they may be, do not matter that much. OK, I already hear some denial, and I probably am just nothing else than an iconoclast.
Just ask your staff to tell you what the official mission statement of your company is, and you very quickly will see my point. Most employees, and that includes senior executives, simply do not know it! The reasons for that are many. The employee joined the company recently, there is a poor communication from the top, there is lack of interest for it, and in most cases: the statement is too long and too complicated to memorize.
Here is another disappointment for those who worked hard at formulating those magic words: your customers do not know your Mission Statement, either. Why? Because they care about their business first and they have seen your Mission Statement in many variations at your competitors’ places, too.
Too many mission statements just sound all too familiar. They are all about your company being the first choice supplier of top quality that cherishes the customers to whom they add value, etc, etc.
When companies differentiate themselves in the same way, they just go back to square one: making themselves commodities.
So what is the only true Mission Statement? The answer is “To make money”! It is true, it is simple to remember by your employees, and the way to do it is to do all the right things right.
Simple, isn’t it?
Copyright 2009 The Happy Future Group Consulting Ltd.

She has a proven track record of interaction with her peers and with her bosses and is highly qualified to talk about effective management and leadership.
In today’s article, the first of a series of 3, she will address the topic of communication between the boss and the followers. Here she comes:
Hello dear readers!
After years of interacting with other dogs and people, as well as by hearing the tone of my boss’s voice when he talks about managers and companies, I believe that our simple canine wisdom could be of great value for business leaders and leaders to be.
I now will review a few very important aspects of effective communication.
Call me by my name!
That is the most effective way for me to know that I am the one being talked to. Calling my name will get my attention, and then I am more inclined to listen to the order. People have this strange way of not calling each by their names that much, unless most of you are all called Hey? I do not know. I believe it makes communication a lot more effective. Moreover, it is super friendly to be called by your name. It gives you the feeling that someone cares about you.
Clarity
We, dogs, are not particularly sophisticated when it comes to read between the lines, so it is utmost critical that your message be very clear. If it is not, we will not understand it, and of course we will not do what you instruct us to do.
In order to be effective, just give us simple and short orders. In most cases just one word will do, like “Sit!”, “Stay!”, “Enough!” or “No bark!”.
The worst you can do is to start giving several orders at the same time, or gesticulate and shout, like unfortunately I have seen in many occasions. This just confuses us, and sometimes even freaks us out. We just wonder what on earth the boss’s problem is, and since we are not sure what s/he means, we just do nothing or do the wrong thing, which in turns seems to frustrate him/her. Poor communication. Not good.
Consistency
This is one of the most important aspect of effective communication. Remember we are simple beings and we need to be trained into patterns.
In order to be effective, your instructions must not leave any room for confusion. If one day, your order means one thing and the next day it means something else, do not expect us to figure out what it will mean. Then, we will act according to what we believe is requested from us. The sad thing is that we will be reprimanded, while you were the one who mixed up the message.
In the same area, your actions have to be consistent with your instructions. Just as an example, and you know we like to beg and try to get some treat from you once in a while and we can really cute at doing it. But, we also can understand “no!”. However, if you give us what we want once, we will expect you to repeat that. You create a pattern. Inconsistency will teach us bad behavior, begging is this case.
Patience
If you want to train us to do what you want, it might sometimes take some time. Sorry, but our brain is a bit small and before we get the message, we will need to learn from you.
Patience will be necessary for you, and if you want us to do what you instruct us to, you will need to repeat several times, and also send us the right feedback to let us know how we are doing.
Shouting at us will not really work, as we do not see this as the alpha way of communicating. In our world, this is more what the wounded weak dog does. All you will do with that is to scare and to confuse us. That will be your fault if we get stressed and neurotic. We will end up barking for all reasons and even become aggressive.
On the other hand, when you choose the right approach, your patience will be rewarded: we will become obedient and respectful, but neither stressed, nor scared.
Importance of body language
Sorry, but we are simple creatures, and we do not have much of a vocabulary. We just understand a few words. We are pack animals and most of our messages have to do with physical interaction.
In order to be effective in your communication, you will have to be short and to the point. Do not give us a long lecture, because we will lose focus after the third word.
To enhance your message, you will achieve a lot by combining short instructions with a clear and consistent body language. Do you know that you actually can lead us by only communicating with us in a non-verbal manner? This is true, and it is more powerful that all those long boring tirades we sometimes have to listen to, but we cannot runaway because we are stuck with that leash!
From our end, most of our communication is non-verbal. Therefore, you, as our boss, need to be able to read the signals that we send and deal accordingly and properly with them in order to lead the pack harmoniously!
Well, people, this is all for this time. I will return later with Part II: Recruiting the Boss.
(The opinions expressed in this article are those of the dog only, and do not necessarily reflect those of the Happy Future Group Consulting Ltd.)
Copyright 2009 The Happy Future Group Consulting Ltd.
You know what they say to job candidates: you have only one chance to make a good first impression! This is valid for a company, too.
Regardless of any PR work done or how well-crafted their website might be, nothing compares with just the possibility of walking around and watching.
First, take a good look at the surroundings: are there inviting, is this a place where you would like to spend half the time that you are awake? If the place reminds you of a hospital or a prison, you probably do not want to work there, unless of course the place is a hospital or a prison.
Nothing spells sadness more than empty silent corridors with closed doors. A high energy high performance place is alive. It is buzzing with people and communication, and generally most doors are open.
Another thing that catches my attention is the presence of those business posters on the wall. You know, the type that will celebrate the virtues of teamwork or of customer service. Unless they have been placed by the employees themselves, it might be a good indicator of the management style and communication style. Instead of leadership by walking around and frequent contacts, the company probably prefers totalitarian regime-like propaganda. Though, those posters are really pretty.
Secondly, just observe the people. In the great places to work for, people exude happiness. They will smile at you in the corridors and they will say hello. Beware of the workplaces where you will not even get eye contact, forget about a smile.
A good place to go for a quick assessment of the culture is the water cooler/kitchen/coffee machine. When you pop in, watch what happens! In a good company culture, you can be sure that the employees present will look at you and greet you with a smile. If, instead, your arrival causes the voices to turn down or simply stop, with straight faces and an awkward silence, then you can be pretty sure that the discussion topic is not about how to beat last month’s results.
A brief chat with the employees will show you the company culture. In a good company, people are genuine and enthusiastic; when they talk about their workplace you can see their eyes and faces come alive and do not be surprise if you have the feeling that they try to convince you that you should work there, too.
In a good company culture, everyone makes sure that the workplace is friendly and inviting. The main signs of a good company culture is happiness and absence of fear! And this describe exactly the “happy” (using vicious would be inappropriate) circle. Fostering happiness and fulfillment increases the commitment of the employees and their performance. They will go the extra mile for the company without asking anything (well not much) in return. They will not watch the clock to decide when to go home, they will leave when they have that sense of completed work. The absence of fear allows the employees to be more entrepreneurial and to dare more. This increases the performance of the company, reinforces its competitiveness and, success breeding success, this creates more happiness and fulfillment in the workplace. Full circle.
Copyright 2009 The Happy Future Group Consulting Ltd.
Here is a one of my favorite ways of helping the staff focused on their work, and not get distracted for too long by the frustrations that their work sometimes caused.
This has always been easy to do, because I rarely have left my door closed. I always have liked to be in close touch with the operational side of business and leaving the door open (as, of course walking around and interacting with the staff) is a great way to get informed really fast of any new development.
So, at some point, we implemented the “venting session”. This consists of allowing the staff to pop in and come and get frustrations off their chests. Of course, this had to be structured adequately, as being regularly interrupted would not work well.
We had two main rules:
1) There had to be a good reason, as I had no interest to be disturbed for insignificant problems. After all, my staff had to be able to deal with most issues themselves.
2) They would make sure that I was available at that very moment, and if not then we would agree an a time to review the matter. Can I come in and vent? would be the password.
This technique has delivered wonders, and the funny thing about it is that in most cases I hardly had to say much at all. I just would ask a few questions about what, who, how, when or why and they would tell me all about the issue.
In most cases, they would know how to solve the problem that had arisen, but they actually were looking more for support and confirmation that they had the right solution in mind.
This is just an example of how important presence and availability are in managing people. If you have done your hiring properly and brought in the right people in the right jobs, they will understand very quickly how to do what is expected from them and deliver the performance that meets, and in most cases exceeds the targets. The role of the manager in such a situation is a little comparable with a shepherd. You keep a good oversight of your troops, but if any one wanders in the wrong direction, you just bring him/her back on the right track.
Further, once people have vented, they can “breathe” normally again and they will get back to work, not only happier than before the session, but actually energized to go out there and deliver more results.
Copyright 2009 The Happy Future Group Consulting Ltd.
To illustrate this, I cannot think of a better example than one of my employees when I was in the aquaculture business.
She used to work for the accounting department of a different division, and her performance was not great. At that time, I needed someone to help us out with administrative tasks and with the processing of information.
I was offered to hire her, although all the negative feedback I had heard was not encouraging. Fortunately for her, the manager under which she was working, was not exactly an example of trustworthiness or integrity, and I decided to meet her and see for myself who she really was.
I remember meeting her on a ferry to one of the islands off the coast of Vancouver Island. She was sitting in her car and did not expect much good from me, as I am known as quite straight forward and decisive.
Anyway, we had our meeting, which went rather well, and I decided to have her meet further with the rest of my team to discuss the operational needs a bit more in details. As there still was some hesitation about her real abilities, I decided to give her a chance, under the condition that we would review her performance after 3 months and then decide. If the performance was satisfactory, she would stay; if not she would go.
And what a transformation! From an unmotivated and dull person, she turned into a dynamic and resourceful collaborator. She did an amazing work, had a great productivity and came with many great ideas on how to process and present the information we gathered.
Later, the person to whom she was reporting (who reported to me) surprised us with a change of attitude for the worst, and unfortunately, I could not have her to tell me what the reasons of that change were. After several attempts to get her getting back to her former self, it appeared that this would not work, and I fired her, which left a hole in a rather sensitive position. I went to the other lady and asked her if she felt she could take over from her supervisor. She was a little hesitant about a fairly big step forward, but as I guaranteed her that I would fill in provisorily for the areas that she did not master, yet, she agreed to take the plunge.
It was a position with much more responsibility and that needed decisiveness and authority, as she basically had the mandate to stop the plant if production was not in order. And once again, what a beautiful transforamtion it was!
She not only adapted to a higher position, but delivered a quality of work that I rarely had seen elsewhere, and I had been in quite a few many places!
She became the best QA Manager in the seafood business that I have met in British Columbia, and she has survived 2 mergers where I am sure she was in competition with people who had a much more solid academic background. She now is in charge of Food Safety for the largest salmon farming company in BC (and in the world)
All that was needed, was for her to have the chance to be able what she really was made of, and that would have never showed up on her resume. It was selection on the job, in the real world!
Copyright 2009 The Happy Future Group Consulting Ltd.
As the Sales Director of the poultry plant, I also was managing our sales office in Germany.
The problem with that unit was that it had not generated any new significant customer for years, and as we were growing aggressively, we needed to grow in Germany as well as we were in our other markets.
Many discussions and meetings further, I came to the conclusion that the German sales office was simply useless and that we should sell to the German customers directly from our plants in The Netherlands and in Belgium.
Of course, this was a very bumpy situation. My superiors trusted my judgement, but were quite afraid of losing business in Germany (our largest market), which the General Manager of the sales office was of course not missing to tell them over and over. After all his job was on the line…
Anyway, the decision to shut the sales office was made and we had to figure out the next step.
Most customers were very old relationships, and this was important to take that into account when deciding who to appoint as the sa;es person for Germany. From the whole office in Germany, we decided that we should keep only one person for sales, the nine other employees would go.
There were 2 inside sales persons, and 2 sales reps. Quickly the 2 inside sales persons did not make the cut and were eliminated.The 2 sales reps were very different.One was a young fellow, quite aggressive, well connected and able to move large volumes, although quite a bit of a loose cannon, and with the tendency to yield to the customers when it came to price. Lots of volume but not much margin.
The other sales rep was in his early 50’s, a very good relationship manager, but with no track record of developing new accounts for a long time. General opinion was that he would get good prices but low volumes. General thinking was also that he was to old to change and adapt to the new strategy, and would be useless to the organization.
Yet, I chose the latter sales person, even though I shared the same worries as everyone else, but I knew one thing: he would listen and do as told, and he would bring a sense of continuity and trust to the existing customers.
We decided to keep him, and I would spend quite some time in Germany with him, visit all existing customers and accompany him in some new prospection activities.
I presented him the sales plan, the objectives and the timelines and there we went.He simply became the best salesman we had. From a very apathic and almost unproductive salesman, he turned into a dynamic, entrepreneurial and enthusiastic representative that brought new business, and lots of it. In the first year, our sales grew in Germany by 24%, while the industry average was only 2%. His performance was stimulating the other sales people, including me, to perform better in their respective markets.
He was not too old. He just had lost passion, because he had no clear idea of what was expected from him. In the new structure, this changed, and then he could do what he was good at: selling! And he did a great job, because by then he had become happy at work!
Copyright 2009 The Happy Future Group Consulting Ltd.
When I became Sales Director of the poultry processing plant, I also supervised the Inside Sales/Planning/Logistics Department.
One of the employee of that department was causing quite a few conflicts with the Production Department, mostly because of very poor communication skills. Requests sounded more like barking and politeness was a scarce commodity from his side.
That problem probably should have been addressed a long time ago, but OK, I had to deal with it now.
All I got were criticism about his conduct and “fire him!” kind of advice.Yet, he had many years of experience and had quite a lot of knowledge. That bothered me to just take the short cut and let him go.
So, I had a meeting first with him alone and later with his supervisor. In the first meeting, I addressed the problems and made him clear that I wanted to understand what caused him to act the way he did. With his supervisor, we reviewed his job description and analyzed what he liked and what he did not like about his tasks.
And bingo! We discovered that he felt very uncomfortable dealing with foreign customers having to speak in languages he did not master. The stress of the phone ringing and hear someone speaking German or English was just too much for him and he reacted his stress on his colleagues.
We decided to remove the customer contact from him, allocate that to another employee who actually enjoyed the sales side more than the production side, and dedicate our difficult friend more to the technical and planning side of production.Within days, I was receiving positive feedback from production people who were wondering what I had done to him, because now he was such a pleasure to work with.
And for him, as he was in his late 40’s, we also avoided a painful layoff that might have had severe personal consequences.
He was now doing what he liked and what he was best at. And he became very happy at work!
Copyright 2009 The Happy Future Group Consulting Ltd.
Experience is one of these words in business that need very specific description to be understood. Just like quality, everyone wants it, everyone offers it, but what does it really mean?
Experience is very valuable, and nobody would argue about that. One of the most common misunderstandings about experience is to confuse it “number of years of experience”. Although one might legitimately think that the quality of experience is proportional to the number of years, this still needs to be proven. For having met people claiming more than 20 years of experience in their field, what they were actually showing was 20 times of only one year of experience, as they had been doing the same over and over again in the same position in the same company in a very routinely manner. Actually they were little adaptable and often acted as resistance agents to the change needed to improve the company performance.
Other people show an impressive list of many different experiences in very diverse fields, and yet this would not prove that they master any of these fields, either.
Too often, when recruiting, we tend to focus more on the quantitative side of experience than on the qualitative side (yes here is the “quality” word). A common misconception is to think that experience and talent are some of the same. They are not.
When recruiting people for my teams, I always have looked at their personality, and mostly their area of talent. This is what I have always looked for in a resume, and not so much for diplomas or the succession of jobs. This has always worked quite well, as each and every one of these teams has delivered superior performance.
The funny thing about the recruiting process is that job postings almost never list personality traits or talents. Instead, they focus essentially on education and experience (which in this case is actually job history).
Experience is valuable to an employer only if the potential employee knows how to share it and transfer it to his new colleagues and to his new employer, and this why personality is at least as valuable as experience.
Another misconception about experience is that people who have been in the business longer have more experience. As my personal experience has showed me, this is as untrue as youth being a guarantee for energy and dynamism. In fact, this is where the talent factor plays a paramount role: talented people, besides being more talented than their peers, also have the ability to learn much faster in their area of talent, and thus can catch up very quickly on any apparent shortage of experience.
Copyright 2009 The Happy Future Group Consulting Ltd.
In most cases, companies do their prospecting at the worst time, which is when they have surpluses to sell.
This statement might sound a bit surprising at first, but as I am going to explain, this will make quite some sense.
As long as sales are in balance with production, most companies will try to find commercial arrangements with existing customers to deal with minor volume fluctuations. After all, when you deal with a regular business contact who knows your company and products, it is easier to set up some promotion deals and move extra volumes.
In the same idea, as long as companies can move their own production without much trouble, they do not see the point of actively going out there prospecting for new customers, as they have nothing to offer. Or so they think.
When surpluses reach levels that are not manageable anymore with the regular customer base, then they initiate a massive prospecting campaign to be able to move the extra volume.
All of this will sound like plain logic to most business owners, so why is actually the best time for prospecting the time when you are sold out?
The answer is simply because it puts you in the driver’s seat, which is not the case when you need to get rid of your products.
In many industries, surpluses for sale rarely happen to an isolated company, but very often the whole sector is suffering. The reason can be because the recent times had been quite good and everybody thought that they should increase their volumes to meet demand, but when a whole sector takes this kind of action at the same time, you can be sure that this volume increase is also going to come onto the market at the same time. The result is a saturated market, in which all participants need to move the extra volumes, sometimes at any price (and also at any cost). So prospecting in such conditions gives all the power to the buyers, who have nothing else than being patient as the sales people will come over and over again trying to out-price each other so that they can move their production. This results only in margin erosion.
In the same way, when you are short of product, in many cases there is a fair chance that your competitors have to deal with the same, and are not able to satisfy demand from their own customers
Why prospect when you have nothing to sell?
There are two main reasons for this. First, because this way, there is a lot less pressure to reach a deal, which helps you being much stronger in the commercial negotiation. Secondly, because this could be the time that you mean the most to a customer by helping out, as you could fill a gap left by one of your competitors.
Of course, you might ask how to help out and sell something you do not have. Massaging your sales and production planning can be a way to do this, or playing broker for once can do the same, and helping out makes your company look quite good, which will be useful when you are the one who needs to be helped out.
Prospecting, not out of necessity, but as a strategy to grow your business at the expense of your competitors is the way to go, and is also the most cost-efficient way. After all, remember that, on average, prospecting to get a new customer costs between 10 and 20 times as much as growing with an existing one. So, it better be well-targeted, margin oriented and fitting in a sound business strategy!
Copyright 2009 The Happy Future Group Consulting Ltd.
This is always the right approach, even when the market is good. The alternative, being production-driven will only bring you gloom eventually.
A very recent example to illustrate this is the construction industry in the USA. The reason why they are in trouble is because they forgot to be market-driven. As their market was good, and easy, they became overconfident and instead of being business people, they actually became speculators. They assumed that the market was to never change, that the only way would be up, and they built more and more houses without having any contract at all, as they thought that there always would be buyers.
By ignoring how markets function, they created their own demise. First, markets always fluctuate; they never go up in a straight line, so they had to prepare for a downturn. Secondly, they ignored the simple law of offer and demand. By taking demand for granted, they did not anticipate the possibility of ending up with more offering than the market would absorb. And thirdly, they did not produce according to what they could sell, but they produced an inventory; that is the production-oriented error.
Of course, one could argue that the situation they face is the result of the sub-prime mortgage fiasco. This is untrue. The sub-prime issue just accelerated the problems for the construction industry. If they had built only on the basis of solid contracts, all their houses would have been, per definition, sold.
Of course, the number of mortgage defaults and foreclosures is pushing prices of houses down, but this is by far not the only reason why houses in the US are losing so much value. The inventories of unsold newly built houses are huge and the market will have to absorb the surplus.
By not being market-driven, the builders have brought themselves in a working capital crunch. Their accounts payable are going up (yes they have to pay their bills) and their accounts receivable are not coming in fast enough because of the inventories. So, in order to pay the bills and not get into bankruptcy, they have to move the inventories. Profit becomes second to cash. This is why they are selling much cheaper than they had speculated. If only they had been market-driven…
The US builder story is just a superb illustration of the advantage of being market-driven, but this is actually a very common story. Especially when a market is good, companies tend to think that this is the normal state of affairs. Add to this a normal dose of greed and then you have the perfect recipe for a disaster to happen.
Know your market and do not let yourself drag into overconfidence!
Copyright 2009 The Happy Future Group Consulting Ltd.
Just a little bit of paraphrasing Dirty Harry to bring up an unusual topic of business management: Luck.
This is an almost taboo to discuss in business circles where everyone prefers to talk about plans of all sorts, about talents and skills, and about management, like luck would not exist. Well that is except for bad luck, which is still valuable as an excuse.
Unlike you might think by reading the first lines of this article, I am not a proponent of luck in business management. Actually, I am quite the type that will consider all sorts of scenarios and contingencies beforehand, but I also have to admit that luck, good or bad, does exist. So instead of arguing if luck is real or not, I have chosen to find ways of having some handle on it.
Luck exists
I would define luck by the occurrence of something that was not expected (or in many cases not anymore) to happen and which has positive impact on the performance of the business.
Every manager has experienced it. Sometimes the business environment is tough, you have tried everything you could to get the results you need and for a long time, nothing seems to work, most of the time as a result of adverse external reasons. You are not alone to experience it, your competitors struggle with the same challenges, and then when you are starting to wonder how to turn around the situation, it happens! You get what you wanted and business looks bright again. It has happened to all of us and yes then we all think the same: we have been lucky!
Luck is not a management tool
Although we all experience luck once in a while, this is not something that a manager can count on, just because of the unexpected character of luck.
Luck is not something that you can factor in, and yet it still is a factor in too many businesses. This is especially true in businesses that have been very successful or that have thrived in a very positive environment.
Just to give some examples, I would mention some hedge funds companies that instead of hedging were more interested in speculating. As long as the environment was positive, the speculation worked superbly, making some traders make personal fortunes and looking like finance wizards, until that day when things were just not as usual and the hedge fund goes bust. Actually, such traders were always doing the same, it mostly the environment that changed and they did not anticipate.
Another recent example I see of a business running too much on luck is the mortgage industry: just by making the assumption that a home is an investment that can only grow in value, some terrible mistakes have been made. Everything was going quite well until that day, when the interest rates had increased again and the mortgages had to be reset, getting home owners in trouble and also the lenders with all the ramifications that we still currently see.
A business runs on luck when people do not analyze what the company is doing so well. It is very human to be less concerned about when a business is doing well than when it struggles. At the first sign of a bad result, you see management starting to ask lots of questions to know why the results are under forecast. When the business does well, then management tends to think that they really had it all figured out and tend to minimize the impact of external factor in the good performance. They are lucky, they take it for granted and become complacent, thus setting the stage for future bad luck!
Attracting luck
Running on luck and being complacent is just bad management. But what good managers can do and will do is to create conditions to attract luck. This can be done very easily.
The best way to attract luck is to assume that you will not be lucky and that you as a manager must make it happen. Assume that nothing will go as you wish, plan a worst case scenario!
Too often, I have seen companies heading to a disaster, just because they took action too late. They reacted instead of anticipating.
Anticipation is indeed the key, and it starts with a critical attitude towards planning and forecasting. A simple rule of thumb is to consider that you will achieve only half of what you aim at, that it will cost twice as much and that it will twice as long to achieve. Once you have your operations and departments working on that worse case scenario, you are creating more opportunities because you are planning to achieve a lot more than what is in the actual business plan. Of course, it costs more energy and time, but in the end you create more conditions for “luck”.
And should be really lucky and achieve more than you can handle, like generating more sales than you can fill in, just realize that you only have a luxury problem. It might not easy to solve but it is luxury!
The conclusion of this story can be sum up by the saying “Fortune favors the audacious”.
Copyright 2009 The Happy Future Group Consulting Ltd.
In this article, I wish to address one of the most effective management technique, which is also one of the most poorly used: delegation.
First, just a few facts
Delegation is in the very essence of management, since a whole team of people have to do the job. This group has been hired for a very simple reason: one person cannot do the job.
In order to make the teamwork towards the goal and work as one entity, management jobs have been created. Their role is not to do the job but to get the job done. And all the trouble lies in this subtle nuance.
What does make delegation work?
You have hired people to do a job, and that is for this very purpose that you have to supervise them.
You have hired them because there are competent; so do not worry of having them do what you have hired them to do. If you doubt their competence, why did you hire them?
You have lots to supervise and to attend to, so define clearly who does what and who is accountable for as well as by when the job goals must be met. Delegating will save you precious time.
Be very specific about what you expect form your staff.
Give feedback and ask for feedback, when you communicate, be brief and to the point. Your staff expects you to do that. And remember that communicating effectively is not the same as talking/socializing too much.
Be present and walk in on a regular basis. Better many short contacts during which you will immediately hear the most important information than long periods of no contact interrupted by long formal meetings.
When you do this properly, as a manager you will feel fulfilled, you will be happy to go to work, as very likely your team will perform quite well. On the other side, your staff will feel appreciated, will have confident and will take more initiative that will benefit your company and will be loyal.
So what does go wrong with the delegation sport?
What situation do you get when the manager does not delegate properly?
The manager spends more time being involved in his staff’s daily activities. The result is staff frustration and lower motivation. Nobody likes having someone looking over his or her shoulder all the time.
The results of such behaviour are many. The most typical are an overworked manager who loses his ability to look at the big picture, wasting his time in things that would be done anyway (remember? he hired competent people) and getting more and more pressure from his own supervisor, as he is having more and more difficulties to meet the deadlines.
Competent people are not interested in working in a messy environment nor are they interested in having the feeling that their boss does not trust them fully. This will result in higher turnover, which will even increase the workload of the overworked manager.
The main cause of bad delegation is fairly simple: an insecure manager who does not trust others.
Copyright 2009 The Happy Future Group Consulting Ltd.