When it comes to looking for partnerships as part of a value chain, one area tends to be neglected. Usually, business people will develop their business plan properly, identify their market and their source of supplies, and make sure that the math is solid. Beyond the numbers, there is always the human factor that will play a role. Every company, therefore every partner in the chain has its own specific culture. This is important to realize, because when cultures, and values, do not match, the relationship will always bring some hardships at some point. This is not a simple problem to solve, and usually, only few potential partners share your values. It is also important to realize that the word “values” does not necessarily imply good ethics and honesty. After all, hyenas move in packs. Sometimes, the partner that can help grow your business the fastest might not be the right one for the long-term, but it might be the best choice for now. Depending on in which region of the world you do business, the sense of time, sometimes even of urgency, can vary a lot. For instance, North Americans tend to want to start business immediately, while the Japanese will take all the time they need to find out whom they do business with, and build enough of confidence in their potential partner before starting business. In the land of the rising sun, it can take several years before the first transaction takes place. What are the risks of a mismatch of values? It can have serious consequences, depending on how much of your business is engaged with the “wrong” partner. It can range from dissatisfaction about the profitability of your business, constant disagreements and tensions with your business partner, to your being ripped off. One thing is sure: there will never be complete trust and loyalty when values are not aligned. Several years ago, I developed a quantitative system to evaluate the value of a business partnership. It is rather simple in its design and very powerful in its implementation. It helps identify the strengths and the weakness of the business relationship, and it is an amazing to tool to use to address potentially damaging issues over time, and create clarity for future dealings. By realigning values, both business partners can develop a plan of action and look beyond the price negotiations alone.
The importance of values in value chains
October 1, 2010CNN – TED Talk – Big bonuses do not mean big results
March 2, 2010Really 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
Genchi genbutsu
October 16, 2009This 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 a hands-on approach!
The ten signs that people are happy at work
October 9, 2009In 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.
- They smile and laugh at work.
- They greet and interact socially with their colleagues.
- They are rarely on sick leave, only when it is serious.
- They do not think of leaving their employer.
- They talk positively about their work, their boss and their company.
- They bring new ideas to their colleagues and boss.
- They have little physical or mental need to take a vacation; they are not burnt out.
- They do not gossip and they do not do office politics.
- Last, but not least: they are happy in their personal lives, too.
Copyright 2009 The Happy Future Group Consulting Ltd.
Why do great employees leave?
May 21, 2009That 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 simpler. 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.
The only true Mission Statement
May 12, 2009Nowadays, 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 see 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. Moreover, 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.
Signs of a good company culture
May 11, 2009You 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 they 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. Some of those posters are really pretty, though.
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 are 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.