How to Succeed When It Counts

Posted by Mike Lambert on September 25, 2009 under Management | Read the First Comment

If there is a big opportunity or a big problem the best way to deal with it is to operationalize(1) the actions that will produce the desired outcome.   Good ideas and plans are the first steps in moving departments and companies ahead but implementing(2)  them comprehensively and consistently is where the heavy lifting gets done and results are achieved.  Solutions may include a level of specificity so that people know what to say (use specific phrases), and what to do (with specific actions).

 Examples of operationalizing a big opportunity and a big problem follow: 

 A Big Opportunity

Ford Motor Company’s new CEO Alan Mulally(3) has been given credit for a number of strategic, smart moves and changing the leadership culture of his team.   His move to cut the platforms for cars and trucks nearly in half while increasing the variants of the platforms is certainly a bold strategic move.  He could have told his top executives to implement actions necessary to make it happen.  But instead he operationalized the “what” and “how” to get it done and made implementing the plan his daily focus. 

For instance he changed the former reporting structure from 6 or 7 people reporting to Bill Ford to the managers of Ford’s four profit centers plus all of his functional managers, in total, 18 executives.  He holds a weekly meeting with this large group to status all planned projects and solve problems as they arise.  He said, “There are no pre-meetings or briefing books.”  He outlawed BlackBerries and having more than one person talking at a time at these meetings.  Mulally states “everyone knows that I have removed vice presidents because they couldn’t stop talking.”  Most importantly by accepting bad news with a don’t kill the messenger set of behaviors and asking for the plan on making it better he has focused his top management group on solutions not good individual reports.

He changed the way the organization worked from a product and management perspective.

 A Big Problem

In the last few years commercial airlines’ good safety record is partly due to very few incidents caused by pilot error.  The reason for this is that here are two pilots in the cockpit, the Captain and First Officer. This redundancy is designed to provide the highest safety probability.  However, in Malcolm Gladwell’s book, “Outliers”(4), he points out that until recently the benefit of this redundancy was not working properly.  Incidents of crashes due to pilot error when the first officer flew a leg of a trip were almost zero.  Almost all accidents occurred when the Captain was flying the leg.  Strangely enough, passengers where safer when the First Officer was flying the aircraft.

Why?  Captains correct First Officers when the First Officer is the pilot in command and the Captain sees a problem that the First Officer does not see.  There is a lot of evidence (cockpit recordings) showing that when First Officers point out problems to Captains it was generally ignored.

A classic example of this problem was the crash of Air Florida into the Potomac River in Washington DC during a snow storm killing almost all onboard.  The airplane was one of many delayed on the ground at National Airport due to a snow storm.  After an initial deicing there was a long period waiting for clearance.   The First Officer had hinted three times to the Captain that the plane had an icing problem.  The third time the First Officer suggested they should take a look at the icing on the plane’s wings.  The Captain never responded to the First Officer regarding his icing comments, received clearance to take off and crashed less than a minute later in to the Potomac River.

As a result of many investigations during a 15 year period every major airline has training designated to teach junior crew members how to communicate clearly and assertively.  For example many airlines teach a standardized hierarchy of statements for copilots to challenge the pilot if he or she thinks something is terribly awry. 

“Captain, I’m concerned about…”  Then, “Captain, I’m uncomfortable with…” And if the Captain still doesn’t respond, “Captain I believe the situation is unsafe.”  And if the Captain does not respond the first officer is required to take over the aircraft.   

According to Gladwell this procedure as well as other similar training initiatives accounts for the extraordinary decline in airline accidents in recent years. 

 The Core of Operationalization

The steps to take when faced with a big problem or opportunity should be comprehensively different than a simple action plan.  Instead, your plan should have significant focus, action, review, formalization of the actions to be taken and follow-up.

Request for Comment

Do you have examples of operationalizing big opportunities or problems? Please share your comments with our readers by clicking the above comment button.

References:

(1) Dictionary definition:  Implement: To put into practical effect; carry out(2) Dictionary definition: Operationalize - to define a concept or variable so that it can be measured or expressed quantitatively; to make operational; put into operation
(3) Outliers – the Story of Success by Malcolm Gladwell, http://www.gladwell.com/outliers/index.html
(4) FORTUNE – May 25, 2009 – “Fixing Up Ford” http://money.cnn.com/2009/05/11/news/companies/mulally_ford.fortune/index.htm

Shocking Treatment of Customers

Posted by Marla Bradley on August 27, 2009 under Management | Read the First Comment

Traveling around the US recently, I am noticing a fair amount of second-rate actions on the part of retail and commercial businesses.  Basic services are being reduced in unusual ways.  Some first-hand customer experiences are:

  • Did not have in-stock size 10 shoes for teen boys of a popular Nike tennis shoe (the one with springs) — Provider:  Sports shoe stores at two different high-end malls; one tried to sell size 11 with padding as a substitute for 10
  • Not repairing elevators — Provider:  two commercial office buildings with the same owner 
  • Drastically decreased amount of tuna in their tuna sandwich — Provider:  Deli where we have been customers for years
  • All you can eat breakfast service changed from self service with 3 waitresses to menu ordering through 1 waitress — Provider:  restaurant in well recognized hotel chain catering to families

These are the experiences customers and clients will remember when they have to make the next choice for requesting service.  Let us know if you have seen some second rate actions of attempts to reduce cost by reducing services.

Leadership Actions for Difficult Times

Posted by Marla Bradley on August 14, 2009 under Management | Be the First to Comment

As layoffs and economic turmoil continue, business leaders are faced with employees who may be paralyzed by fear and doubt and the loss of equilibrium in their business and home life.  In addition, customers and suppliers are dealing with their own problems in an environment where their issues and needs continue changing.
 
Managers have the difficult task of sustaining relationships with customers, suppliers and employees.  At the same time, managers are expected to help the business bounce back and recover as soon as possible. 

Internal – Engage Employees, Managers, and Executives.

  • Communicate the plan.  People work more productively when they know what the company plans are. Without plans people will guess or make up their own plans.  Remember, “Tough news is better than no news.”  Have as few secrets as possible.
  • Confront the issues and control the fears by communicating how the company or your department is progressing within the plan and dealing with unexpected, relevant issues.
  • Hold regular meetings to solve problems or get suggestions for process improvements as layoffs and the economic turmoil continue (include other departments if applicable).
  • Continue training programs to engage and develop employee skills.  This reinforces that you are an ongoing business preparing for new growth.

External – Communicate with Clients, Customers, and Suppliers.

  • Make sure your clients, customers, and suppliers know that you care about them and are interested in their welfare and your mutual partnership.
  • Ask them: “What is going on with you?”  Integrate what you learn from this feedback with those groups and individuals who can take action to resolve any issues or concerns.
  • Be proactive and ask your customers and suppliers what you can do to assist them.  Remember you must be able to follow-through on any offers you make.
  • Look for opportunities where you can support clients and customers during the economic turmoil.  For example, identify products and services that you have in excess.  Let your clients and customers know whether these products or services can be offered for free or at a reduced cost.

Please share with us your experiences by adding to this list of leadership actions for difficult times.