Ambition is good. It drives us forward and stretches us so that take on new ideas and experiment. It makes us do things. It makes us grow as people and those benefits accrue to the company we work for.

But what happens to an organisation whose leader(s) lacks ambition? This can occur when the company makes enough profit to satisfy the earthly needs of the major shareholders or when the effort to play on a bigger stage is considered to be a step too far (i.e. too frightening). The status quo is a safe haven.

This all too common phenomenon can have some serious drawbacks for employees and the economy as a whole. Innovation suffers as great ideas are discussed and then discarded (as in “put it on the back burner for now”). The effect on staff moral is huge if they see this happening. Most people, if they are honest, want to work for a “go getter” company. It’s cool, it’s fun and it gives you great bragging rights to your friends. How many people want to talk about their work if they think they are in a deadbeat company?

So if you are ambitious and find yourself working for such a company what happens? You’d get demotivated pretty quickly wouldn’t you? What’s the point of suggesting new ideas when you know they’re never going to see the light of day? So you either put up with it (unlikely, unless all your earthly needs and more are met) or you look for new challenges elsewhere. And this is where the economy as a whole can suffer. We need innovation spread across the whole economy in lots of company and not grouped into a few. This increases competition which increases innovation which increase competition and so on. All the while the economy benefits as the amount of business being carried out in the market increase along with the confidence that this brings. If also leads to an increase in tax revenue to fund social programmes etc.

As we enter what is being talked of as one of the worst recessions ever, lack of ambition will hurt us all even more.

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So how do we lead in these situations? For me there are 6 points to consider:

1. Have Vision
   This is important at the best of times, but at the worst, it become critical. Articulating your vision to your employees allows them to perform in an atmosphere of confidence. If they feel that you know where the company is going and that they are involved in this journey, they will be more inclined to roll their sleeves up, to give you the discretionary effort which can be the difference between success and failure. Keep them abreast of developments, good and bad. Make them feel a valued member of your team. Get this right and they will walk through the proverbial brick wall for you.
2. Understand Your Shortcomings
   This is in both yourself and your team. In good times, we tend not to think about our own weaknesses. In bad, they can really hurt you. Now is a good time to work out what your people need to do to improve their skill sets with coaching and/or training courses. Brainstorming meetings with employees you rate can kick start innovation.
3. Nurture Your Employees
   Your top performers are less affected by market downturns than others because they are the most mobile and confident. To hang on to them they must feel part of your team. Get creative in how you make them feel like this: increase their professional development, think about their reward structure etc etc. However don’t neglect everyone else. If they perceive the top dogs getting more than they do, it will quickly breed resentment which can undo all the good work you’ve done elsewhere.
4. Empower People
   This is about trusting your team. Delegate to them and allow them to make strategic changes without asking permission if they think it is in the best interests of the firm. In bad times, speed of decision-making is crucial.
5. Don’t Cut the Marketing Budget
   This is one of my biggest concerns with clients as they don’t seem to see the obvious flaw in this logic. In order to survive, you need to sell. When the market it poor, your sales drop. So you need to find new sales channels. How can you do this if you cut the marketing budget? I’ve always felt that there is a strong argument to be made for actually increasing the marketing budget in a slump. But one thing you must do is “sweat” your budget. Get the most “bang for buck” by putting pressure on your PR company, advertising agency etc. This can easily be sweetened by paying them a performance related bonus – a real “win win” in this market.
6. Be Brave, Be Creative
   When the going gets tough, you need to look at every aspect of your business including things which you hold dear. Nothing can be sacrosanct. Remember this is about survival so everything can and must change if it helps in this regard. If it doesn’t help, think about whether it is actually necessary at all. If it adds to your costs, kill it. A healthy does of realism makes it much easier to be brave – and creative!

You will note that I have hardly mentioned costs in the list above. Indeed several of the points will increase your cost base in the short run (training, coaching etc.). Many companies won’t have a lot of cost they can strip out as they have outsourced in the past and can use the Internet for much of their workflow. Ironically cutting costs can bring about the very recession we fear. If I cut costs, my suppliers get squeezed so they cut costs which in turn squeezes their suppliers. And so it goes on. This takes liquidity out of the marketplace and it is liquidity, not interest rates, which determines how people feel. If your mortgage rate goes up, but you have money in your pocket, you don’t feel too bad. But remove the cash element and you quickly feel upset.

Being a leader in times of trouble is what seperates the successful from the failures. It is hard to do emotionally as you won’t get much time just to be, but it will pay off believe me.

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What follows is a one page overview of Slaying Dragons so that you can get a feel of how it works. It has been a fun process to facilitate and the outcome has always been positive.

Enjoy!

Slaying Dragons

Enhancing Buy-in

The Problem

One of the biggest problems faced by any leader is getting the team to understand, and more importantly, buy into a new strategy and/or plan of action.

Countless, and often precious, hours can be wasted persuading team members that a) the strategy makes sense and is the correct course of action and b) helping them to understand their role within the strategy. As we all know, team members are often afraid of change and what effect it might have on them and their jobs and so take entrenched positions which can ultimately harm both themselves, in terms of their career and standing amongst colleagues, or, more importantly, the success of the strategy.

Best Case Outcome

Clearly the best case outcome is that every member of the team instantly understands the strategy and the role they are required to perform. Sadly this almost never happens. Consequently we need to ensure that everyone understands and buys into the strategy collectively even if they are unsure or unhappy with the effect it might have on them personally. The power of this collective responsibility should never be underestimated, as not only is every member of the team committed to the agreed course of action, but they have also implicitly committed themselves to their colleagues to make it succeed; as we know, people are generally more worried about “losing face” with colleagues than just about anything else in the workplace. Slaying Dragons is a technique that delivers this. In anything complex in an organisation, many attitudes and anxieties (the “dragons”) remain hidden in “caves” and only come out later at inconvenient times, often with very disruptive effects on the change.

The Technique – Slaying Dragons

This workshop runs for about 4-5 hours (it can last longer than this depending upon numbers and the level of engagement from the participants) and uses a number of well understood concepts. It breaks down into 5 parts.

Part 1 – Strapping on Armour
Break up into pairs, choosing someone you do not know well or work closely with. Take turns to listen to each other and discovery 3 things that each of you is good at. Maximum 30 minutes total. (Appreciative Inquiry). This gets everyone into listening mode as opposed to talking mode.

Part 2 – Look into the Dragon’s Eye
Everyone comes up with a verb and a noun to describe the organisation. This is how the organisation is viewed today and is the starting point for change.

Part 3 – Taking Aim
Using the Value Discipline Model, everyone discusses where they believe the organisation is today. It is highly unlikely that there will be consensus.

Part 4 – Wielding the Sword
The same exercise as Part 2, but this time the words describe how the group sees the organisation at some agreed point in the future (i.e. in 2 years time).

Part 5 – Extinguishing the Flame
The group decides and agrees how to get from Today (Part 2) to Tomorrow (Part 4). This is where the proposed strategy can be analysed by the group and buy-in confirmed.

Conclusion

This technique is proven to be successful at achieving buy-in. It also has the (dis)advantage of modifying the strategy in real time based upon the group’s feedback. When this occurs, the buy-in is even stronger as the group recognises that it has shaped the outcome and is therefore even more committed to it.

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I like the concept of TEAM as a delivery acronym. For me it means

T – Think (about what the client needs)
E – Engage (with the client and other stakeholders)
A – Action (build it – create the ’something’ your company delivers to clients)
M – Manage (the system, the client and the other stakeholders)

Yes, I like this a lot …

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But to most people in the UK he is best remembered as the star of the “Troubleshooter” television series where he visited (and later revisited) a series of companies that were in trouble and advised them how to turn themselves around.

The programmes were particularly important for me, although I didn’t realise it at the time, because it was the first time that I’d seen mentoring in action. I didn’t (and still don’t) agree with the way that Sir John mentored. He told the owners what they should do and several of them hated it (Morgan Cars being a very good example), whereas I prefer to keep asking questions until my clients arrive at the solution so that they “own” it and will therefore put it into action.

So I owe Sir John a huge debt. I have some friends who knew him and describe him as a very generous man, and my big regret is that I never met him.

So rest in peace Sir John. And thank you.

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Companies appoint a Chairman for a variety of reasons. If they are about to float, or are seeking external investment, they may pick someone who is acceptable to the “money men” and who has contacts in that arena rather than going for someone who can add real value to the companies proposition. But I suspect the most common reason is that they think they should have one.

So why do people aspire to become Chairmen? For many, it is just another source of income along with their other directorships and consultancy – a lucrative way to fill time once they have left the comfort of the corporate world. Given the changes in company law on both sides of the Atlantic in the aftermath of Enron and Worldcom et al, I wonder how much life is left in these roles. But for others, and I believe this is a growing number, it is about getting stuck in and really helping a company (and it’s founders/shareholders) to achieve their dreams. I personally get much more satisfaction from the “Ah ha” moments now that I am a Chairman than I ever did when I was running my own companies.

To be an effective Chairman there needs to be a clearly defined role, and one which is well understood by all. It is not just about turning up once or twice a month to chair a Board Meeting, important as this task is. For me, a large part is about mentoring and getting the Executive to perform at its best. It can be really difficult for a Director or senior manager to ask for help in case this is perceived as a sign of weakness. Consequently they can get bogged down in their role trying to solve this and other problems rather than have and use their time to think and plan for the future. A skilled Chairman will recognise this situation and will offer a discreet sounding board for the Director to make use of. This is not about showing off, or demonstrating how clever/successful/brilliant the Chairman is – phrases beginning with “In my last company …” or similar must never pass their lips. It is about listening and questioning, not telling or instructing. Mentoring can also help the Chairman really understand the strengths and weaknesses of the team/Board and so help them perform to the best of their abilities if necessary by playing Devil’s Advocate and constantly challenging (constructively) all the plans and strategies being put forward. And because of this, an open style of communication is crucial.

Another important role of the Chairman is networking and putting their network at the disposal of the Company. Normally this will have a quasi-sales bias but of equal value is the trouble-shooting element – knowing the right person to bring in to solve a particular problem.

But by far the most crucial role is to be a support for the CEO/MD. It is their job to run the company not the Chairman’s so the Chairman should do everything possible to help them to do this. And without stealing the CEO’s limelight. For this reason, it is not a good idea for the Chairman to be the ex-CEO! One of the things that officer training in the military teaches you is that when praise is being handed out, always deflect it on to those under your command, but when criticism is given be a large umbrella and protect your team. As a commander, it is your fault when things go wrong even if you were not the actual culprit. So it is within a corporation. Protect your CEO and the Board at all times.

So should a Chairman be Executive or Non-Executive? I would argue that it must always be the latter otherwise the Chairman and the CEO are in direct competition. This was graphically illustrated a few years ago with BAe, the UK arms company, where the Chairman and CEO had a very public falling out to the detriment of the share price.

So what makes an effective Chairman? You will know if you have one because everyone will be aware what value they have added to the Company. Having someone who is a good listener, has a good network and does not want, or need, to take plaudits is a good start.

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There is a well-known budget hotel chain here in the UK called Travelodge. I have used its various hotels frequently in the last year or so. Normally my stay is a fairly painless experience – it’s a budget chain so you get what you pay for, but the rooms are pretty comfortable so I’m happy. I tend to arrive at my destinations late so I nearly always get the night porters when I check in. Without exception these people have been courteous and kind. But the behaviour of the management in these 2 recent incidents defies believe.

On the first occasion, I was told, apologetically, by the night porter when I arrived that the advertised breakfast bags for the following day had not arrived. The next morning I politely asked the day manager why there had been no delivery and where I might get some breakfast locally. His response was astonishing. Had I not been told there were no bags when I checked in? Yes? In which case the reason why was none of my business. And this despite the advertised promise of a breakfast bag. And where could I get some breakfast now? “Dunno!” was the curt reply. Which was strange given that I’d seen him at the hotel over several months.

The second occasion was in a different city. My wife woke at 3am and walked into an eave in our room almost knocking herself out. The night porter could not have been more helpful, bringing a bucket of ice to the room along with an incident form for us to complete. On returning home I wrote and complained about the safety aspect of this eave. After 4 weeks I’m still waiting for a response. Not an apology mark you, just a response.

What is disturbing is that I hear similar stories from friends and colleagues about all sorts of companies. In my experience it is service companies that seem to provide the worst customer service; just think of all the complaints over the last few years about the banks and building societies and their high-handed attitude towards their customers.

One of the lessons all business leaders need to learn is that they must listen to their customers and try and act upon what they tell them. But do most businessmen listen for themselves (assuming that they listen at all) or do they rely upon some third party to tell them what their customers think (i.e. their customer services department)? At my last company, I made a point of spending time answering the telephones in the technical support department as often as I could because this connected me directly to our customers. Whenever we made a change to our service (we were a large Internet service provider), I got almost immediate feedback from the customer base telling me whether or not we’d made the right decision – and some of that feedback was very blunt I can tell you!

If business leaders don’t talk to their customers directly they are bound to alienate them at some point. And alienating customers is likely to mean a rapid drop in sales with all the problems and pressures that can bring.

We don’t do customer service anymore.

Perhaps we should.

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Recently I was with one of these advisers and the conversation was not pleasant. In fact it made my blood boil. In a nutshell, I was asked, point blank, why I wasn’t making more money currently. Notwithstanding the incredible rudeness of the question, I was appalled that this came from an adviser that I have had for over 20 years and who has seen me create and build companies with multi-million valuations. I’m not known for being slow to anger but I was too flabbergasted to respond – which, I expect, was taken for acquiescence. I felt belittled by someone who has been happy to take a huge sum of money from me over a long period of time, yet clearly felt that they were somehow better than me, if only because they were making a solid, steady income and I, like all entrepreneurs, was on the financial roller coaster that we know so well.

What really annoyed me was that I haven’t discussed my new business with this adviser since I set it up a few years ago. So he (yes of course it’s an “alpha” male) has no idea what the philosophy is behind it. Had he chosen to ask, he’d have learnt that I no longer have a desire to be mega rich or rule the world, and that with two small children, I’d rather spend time with them than working all the hours in the day. In short, my needs are a lot simpler now.

So where am I going with this? Well I’ve started to look around and listen more carefully, and I am becoming increasingly concerned at how, in the United Kingdom at least, this seems to be a prevalent theme. As a mentor to board level directors and senior managers, I am used to being around leaders (and was one myself until quite recently) so I worry that if this level of insolence, and indeed intolerance, continues, it will become the endemic culture of a large number of companies. And as many of them are international, the tentacles of this unpleasant behaviour will spread far and wide and rapidly.

People who are adept at delivering the quick one liner put down are actually not being clever – they are bullies. They might get an instant reaction of “approval” from those around them but they will never be liked. Pitied yes and feared certainly, but never liked. And by behaving in this way they demonstrate that they are narrow minded and “little” people.

If the world is being taken over by pygmies, I need to find a blowpipe. Fast!

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Well the sky fell in, and the fall out has been very painful. VAServ lost just about everything: over 100,000 domains taken off line while they tried to fix the break-in/security breach(es). For this company the pain is awful as they have been forced to be acquired (as far as I understand the email I received) by their UK datacentre partner who supplied man power to help out. I doubt the owner, who spent years building his company up, received very much if anything for it.

I lost all my domains. The reason you are seeing this is because I was forced to move to Hostgator to try and get my domains back up and running – I’m one of the lucky ones in that I had full backups of all my sites, both SQL and themes/plugins etc. Not everyone will have been so lucky.

Which brings me to the unfortunate owner of LXLabs who sadly appears to have committed suicide on Monday.

Is a software flaw, no matter how serious, really worth a life?

A new directory enquiries service has recently launched here in the UK called 118 800. It will allow you to ask for someone’s mobile number.

Most people, I suspect, feel that their mobile is their very private domain and don’t want it invaded by cold callers. It’s bad enough when that happens on one’s home telephone.

I’d heard about this service before but thanks to the weekly email I receive from Money Saving Expert (an excellent service for finding the best deals on insurance, utilities), I learnt just how insidious this service is. If you’ve ever forgotten to opt out when signing up for an online service (or offline come to that) and provided your mobile number, the chances are that this service will have bought your details and added you to their database.

But all is not lost! You can opt out! Don’t forget to do your partner’s phone and particularly those of any children you might have as many (most?) kids phones are registered to a parent and so outside the rules governing contacting minors. 118 800 have a removal page here.

I strongly recommend that you take action now!