Building a competitive company

We have three big levers to pull. Our marketing strategy, the people we're going to do this with, and the management systems, (both soft and hard) that will hold it all together. The thinking at the top is most critical. One right decision can effect the entire health of the company. One policy decision, a misunderstanding of customers, a wrong choice in people, all have long reaching impact.

Monday, 31 October 2011

Time Management and Broccoli

It's 5:45 am, dark outside. I see the steaming lights of a tugboat. Three lights means a long tow. Behind it is a dark hulking shadow, probably a Seaspan barge, fully loaded, going where? 

I am awake, sort of, but my executive functions, that part of the brain which plans, makes decisions, and regulates behaviour is very much still asleep. Like a child on autopilot unaware of my surroundings or the day ahead of me, I am fixated in the moment, watching a scene unfold in front of me. 

Auto, my pilot, tells me to start the espresso machine, go through the ritual and in about three minutes I have a predictable cappuccino. No thanks to my brain, but thanks to Otto. 

Did you know that other than intelligence, self regulation is the biggest reason for a successful life? Ottopilot stuff like impulse, cravings, or even emotion can make smart people do dumb things. Intelligent plans are easily over ridden by impulse if the front part of the brain is not working well. Think about ex New York state governor Elliot Sptizer and the $20,000 hooker. What was he thinking? Short answer, - nothing. Otto was in charge. 

We all have a bit of Elliot in us to one degree or another. In the cold war days the Russians counted on being able to corrupt anyone they needed to. Greed, sex, drugs, money, power, fame, regardless. They were correctly sure that just being human meant at some point your auto pilot would replace your executive brain function and convince you to do things even you didn't agree with. Name your weakness. Pandering? 

So success is hooked to self regulation, the ability to stick to the plan, to make choices in line with goals. Self regulation, turtle and the hare. Patton having to know how many miles a platoon could comfortably move in one day. Hero stuff vs. system, actor or director. Letterman doesn't have conversations - he only comments on them. Now Collins latest book, "Great by Choice." and the idea of the 20 mile march. It's the same idea, ratcheting up and down the abstract scale. Can you manage yourself? 

After two espresso's I wake up, larger thoughts are entering my mind. My executive functions are fully awake. I don't care about the tug any longer. I have bigger things to think about. The plan takes over. My choice? 

Time management is our subject for Nov. 23rd. But you can't really manage time can you? You can only manage your choices, which cuts down your autonomy, which does imply more broccoli. 

See you for breakfast! 
Wolfgang 

p.s. Our new bpg schedule, more seminars, more focused tools, for all Barefoot Managers! Basics, simple, interesting, explained in more detail. Management is not complicated. You'll love it. Register now. 

p.s. People who manage their choices have more free time! Cool.

Thursday, 13 October 2011

Why a $1 Billion Dollar Circus Doesn't Hire Stars.

Why are there 27 Cirque du Soleil shows, but only one Barnum & Bailey show? Because Cirque doesn't have to hire stars, they hire average people. Old style Barnum will hire only proven circus stars. Barnum's talent pool is limited. Cirque's is unlimited. Cirque has a system. Barnum has stars.

Traditional circuses lived and died by their ability to hire star performers. Whoever hired Gunther Gebel Williams, Clyde Beatty, or the Flying Wallendas, sold the most tickets. A circus was only as strong as it's star performers, it's heroes. Cirque has no heroes.

Cirque du Soleil has 27 different shows, 8 of them permanently in Las Vegas. Cirque's revenues topped $1 billion, and they don't employ one super star! No one performer is a known entertainer.

I'm stunned by Cirque's business model. The idea of hiring average people and engaging them in this amazing system. It is where we're all being pushed in business. The talent pool is shrinking for the next eight years. Our systems will have to produce the results because there won't be enough heroes to go around.

Right now BC's economy is doing great, and Alberta is doing better. Still good for us because many local companies are doing a lot of business in Alberta.

Hiring for potential means you have to have better management and tight systems. Systems introduce structure, reduce subjective decision making, push creativity to corporate, and execution becomes the duty of the line. Systems make results predictable. Heroes do not.

This model forms and shapes people. Formative employers benefit from huge loyalty, reduced costs, (because you're not paying star wages), and the ability to sculpt performers tightly to their company's needs and culture. Not bad, but it's sure a lot of work.

Today, unemployment in BC is at 6.7%. That's low, and at pre 2008 levels. By 2015 unemployment will fall to 5.2%, (according to BC Central Credit Union). Alberta's unemployment today, still lower at 4% which effects us because BC workers migrate to Alberta, reducing available talent here. 
  • Do you have strong systems that would allow you to hire average people based on potential? Systems strong enough to allow average people to deliver exceptional performance?
  • Heroic employees, (though we love them), are also an indictment of a poor systems. Great systems don't need star performers. They deliver without any special individuals. Only terrible systems require heroes to bail them out.
There is no Barnum and Bailey circus in Las Vegas. But there are 8 different Cirque Shows, (count them, out of a total of 27). You decide which is the better business model, - heroes or systems? Which are you, Barnum or Cirque?

Every seminar is about turning a management problem into a system. Predictable, and it will work for you every time. 

See you for breakfast!
Wolfgang 

p.s. The Blue Man Group has a similar business model. They might have 8 groups going at one time. Same thing, no individual stars, no speaking, the show is scripted. No creativity required. A business model easy to clone, uncoupled from heroes. 

p.s. Download some great interview questions. 
Nine Mindhunter Interview Questions.
If you're interviewing, download this pdf. I wrote it a few years ago and it's still solid. Nine questions with explanations attached. The reason for the question, what you'll learn, etc. The battle is to get past the candidate's message and into the facts. This tool will help you ask better questions.

p.s. I'm not oblivious to the Euro zone falling apart and Obama wondering why his constituents, (democrats) are bypassing him and occupying Wall street. It appears the euro zone will pull itself out and the USA economy, regardless of what we think, is growing at slow, bumpy pace. We're all tied together and I'm not at ease yet.

p.s. Dealing with people. "You don't have to be angry, you don't have to be loud, you just have to be clear."

Thursday, 6 October 2011

The problem with a David Copperfield resume.

Never been to Las Vegas, - till now! I don't gamble because it occurred to me early on that these unbelievable, opulent and grand casinos were not built on profits from the buffet. That aside, gambling at tables just doesn't interest me. 

Ostentatious means nothing until you set foot in the Venetian, or Ceasars. You can't explain it. You will see it, but there's no way to explain it to someone else. Architecture, money, greed, conspicuous consumption, it's all there. Oddly, there is no fruit in Vegas. Vegetables, fruit and rye bread can't be found. Starbucks had the last banana in Nevada, I bought it, hesitated, but ate it anyway. There are beautiful, expensive, great restaurants and we enjoyed several. The other choice is pricey junk food and nothing in between. 

Should have bought show tickets ahead of time but didn't. Result, $204 for David Copperfield show. Why not, he has a long standing reputation. Should be a good show, right? Location, the MGM Grand. Good. Done. 

Follow the story with me, but think about hiring and reading one of those almost tricky resumes you receive, which begin with "Career profile, accomplishments, strengths, achievements" (detached from a specific employer), and bundle the last twenty years into one boilerplate of endless virtue and competence. Actual employment history, is at the end, in a brief line item chronological employer listing. Just start and end dates, but no other detail. You're supposed to be happy with the bundled twenty year over view.

Back to Mr. Copperfield. Worst show in my life. Amateur magic. (The floating handkerchief trick comes in a package for $21 at any magic store). Audience was not impressed and needed to be revved up frequently. Copperfield tells us when to clap. He shows us, (with both his hands, "clap now."). He's listless, eyes glazed over, lethargic, prattles through his spiel. David, you just aren't what you were twenty years ago. What the heck happened? 

I googled Copperfield, his accolades are many. He is an accomplished magician who's sold more tickets to date, ($30 million dollars) than Michael Jackson, Madonna and even Lady Gaga. He grosses around $30 million annually. Yes, I had the same response, "David Copperfield?" Who would have guessed. Problem is, he's no longer that person. He's no longer the David Copperfield he was. 

Resumes which use the Copperfield approach, (I was great for twenty years so I must be great today), need to be clarified, they need more detail. Nobody is who they were twenty years ago, not even Copperfield. The things I thought important twenty years ago I don't even find mildly interesting today. My tastes, skills, interests, competencies and everything else bear little resemblance to twenty years ago. To quote my experience from twenty years ago is almost dishonest.

When you look at one of those "brochure" resumes, - call it the "David Copperfield resume." A candidate who has twenty years of success and wants you believe they're still capable of doing it all again. Most of them are not. Even Copperfield isn't really David Copperfield anymore. 

How good was your last show? How good were you in your last position? Forget the other stuff. 
Don't hire a "David Copperfield" resume. 

See you for breakfast, better than a Vegas magic show.
Wolfgang 

P.s. Ask for a quote. If you're hiring, call us and ask for a firm guaranteed fixed price. If we can do it, we'll tell you. If we can't, we'll tell you that too. But if we take on your job, it will get done. That's a promise. 

P.s. I'm sad to see Copperfield do such a poor show. His sin is not caring. He pretty much "phones it in." Just to make sure it's not just me I googled "Copperfield reviews" and every show review site is riddled with upset, disappointed people who have much the same opinion. 

P.s. Most of these resumes are based on the advice of professional resume services and high school teachers. The two worst enemies to getting a great job. Be honest, write your work history, don't get tricky.