This post makes a very valid observation and goes on to pose a challenging question.
I believe we are waiting too long to develop leadership skills in our people and we’re leaving it a little bit too late (IMHO!) for it to be as efficacious as it could be. As they say – if you want a tree today, plant a seed 20 years’ ago.
Let’s start planting lots of seeds now – we need future leaders – and we want good ones.
We all know that if we want the answer to something, we generally ask questions.
BUT, the quality of the answer we receive will revolve in no small part around the quality of the question we ask.
There is a new post on Fast Company about questioning and some hints to improve the quality of the questions you ask. For all of us who are in the business of seeking answers, it is well worth a read.
Interesting article in Entrepreneur Magazine (website) about when to send emails for the greatest chance of them being opened and read.
Worth remembering for when you want a response.
Richard Watson writes some very thought-provoking blogs and one of his more recent posts is especially so.
He argues that whilst we are more connected and everyone has higher profiles (especially those heavily using social media), the incidence of real friendships and support mechanisms is dropping. We can see this with higher levels of suicide, depressive illness and “problem” relationships that are being more widely reported. People know about it but are they doing anything about it?
I see the focus on “being connected” as a real issue whereby we are spending so much time working and dealing with inconsequential things like Facebook and Twitter, we’re missing out on the true values that make us human. There seems to be a huge focus on the part of our younger people to get as many friends and followers on the various outlets of social media whilst fogetting about the truly important friendships and relationships that sustain, support and develop us a human beings. It amuses me that Facebook seems to be a place where people post pithy quotes about the value of life and friendships but remit these purely via the internet rather than over a coffee table or kitchen table with friends as unique individuals properly inter-relating.
So if you have lots of friends on Facebook, how many do you have in real life? Or are you actually lonely?
Why don’t they bloody well understand?
An internal question often asked by managers and staff alike when looking at each other and considering the issues they have been asked to address.
It is natural for us to assume that the other person has understood what we’ve said and they are as clear as we are regarding the issue after we’ve said it. More often than not, this is not the case. Then, when things go pear shaped, they blame the other person for not understanding what it was that needed to be done.
When you think about it though, the responsibility for ensuring that the other party understands what has been said/requested rests completely with the person doing the talking or requesting. “Assumption is the mother of all f***-ups” is an old military saying. It is just as true in business and personal life.
When things have gone wrong, I have asked countless times to myself, our team, customers, wife, child, friends and others – “did they hear or were they just listening?”
We need to ensure that our communication is not only clear and to the point, we need to make sure that the recipient of the communication has actually understood what it is we’re talking about. The “miscommunication muckup” occurs more often than you would think.
So, when it comes time to communicate effectively, make sure that the other person has not on listened, not only heard, but also understood what you’re on about. This will save frustration, stuff ups and create a better environment for everyone.
Because they bloody well understood.
There is the old quote that I love:
Business is like a wheelbarrow – it stands still until someone pushes it.
The economy is currently in a state of some turmoil and a significant number of commentators are predicting “doom” with a drop in the price of iron ore flowing from decreased Chinese imports being the major driver. Couple this with the federal politicians talking things down and the inherent uncertainty that has been cuased with the new taxes and imposts being imposed by them and you create an environment where people are very reticent to “have a go”.
The emotion that is currently prevailing in Australila (as perfectly demonstrated through the retail sector) is one of some distress and hesitation. Combine this with well-publicised job losses in a range of sectors and I can understand the feelings that people are having.
But, when you look at the underlying fundamentals of the economy, we’re not in too bad shape. Sure, debt levels are rising federally and the government has made a number of announcements that don’t impact on the budget for many years (all spending related) along with the introduction of some concerns regarding “sovereign risk”.
In a very real sense though, the level of uncertainty that is in the economy at the moment is causing people to save more, spend less and “trim their sails”. Speaking with a number of colleagues around Australia, it would seem that a lot of businesses and individuals are sitting on piles of cash – scared to spend it due to the ambiguity they see in the economy. In short, their emotions are constraining their desire to expand and develop. At the current time, there are A$750bn of projects approved for development in the mining sector alone. This will create thousands of jobs and allow the expansion of our export markets.
The issue is that businesses outside the mining sector simply aren’t taking any positive steps forward regarding their development and expansion.
If the emotion were to change such that people had a more positive outlook and regained some of the belief that existed prior to the GFC, we would see things improve rapidly.
By clarifying your vision and goals, there is a distinct possibility that your own emotions will improve. You will begin to see there is a definite way forward and you will begin to move in that direction. This is going to have positive results and this will then set examples for others who will follow. By doing this, the emotions that people feel will improve and become more positive, this will, in turn, see the economy start to improve.
So pick up the handles and start moving your wheelbarrow!
“Cashflow is King” – long live the king!
In recent weeks, we have been working with one of our clients looking at the margins and debtor position of a number of their customers. Flowing from this, we found that one of their major customers was on a far lower margin than the others and also had the longest payment terms. In effect it was costing our client to have them as a customer!
Our client then took this information to their customer and, lo and behold, the trading terms came in by 20 days! The information they shared was very open and honest and they presented the situation in a very frank and direct manner. One of the really surprising outcomes from all this was that the customer actually offered our client additional work for their other businesses and has opened up new supply opportunities to enable a better relationship to be developed.
In the current times where people can find it hard to supply at a decent margin (ie: one that actually makes you a net profit!), one of the terms and conditions that can be manipulated is payment terms. If you work out the cashflow impact of your debtors paying you in 35 days instead of 45, the difference in your bank account can be amazing. Similarly, if your debtor days go out, you will definitely notice it! I explain this in a bit more detail here.
So, when it comes to negotiating terms and conditions with your customers, why not review it in light of not only margin, but also payment terms? That way, you can be king!
There is a consensus view that the current economic environment is one which is filled with uncertainty. Customers aren’t spending, banks aren’t lending and businesses are finding things much tougher.
On our view of what is happening, much of this is true (especially with the banks). We do find however that a lot of the issues within business comes from the fact that the times are uncertain. The uncertainty they are seeing/feeling is creating uncertainty in their minds.
The problem with this is that is leading to indecisiveness. People just aren’t making decisions or they are putting off making decisions so much that someone else ends up making the decision for them.
So we have the situation where the perception is creating the reality and the “cautious” approach being adopted by a lot of businesses is perpetuating itself. It then enables a vicious circle to exist where business owners and managers effectively become stuck – like a rabbit in the headlights. They do not have the confidence to make decisions which means that they don’t. This lack of decision making confidence is something that needs to be addressed.
Having worked with a number of businesses over the past couple of years, we have seen the impact of the differing approaches. Those businesses that adopt the “stuff it, we’ll make a decision” approach have been doing very well. Those that have a deep-set fear about the current environment don’t. It is the ones who don’t that we see as falling behind (sometimes badly).
The lack of decision making in a business leads to a situation where the “bad” results actually occur which then verifies the behaviour that created the indecision in the first place. This sounds stupid doesn’t it?
To take advantage of the economic environment that we have at the moment, try adopting a more positive, assertive and optimistic view. This will help you make decisions. The results of those decisions will see you move in a more emphatic way and this will seep through your whole organisation.
You need to remember that a lot of your competitors are in the fear mode of thinking where they will be scared of making a decision. This creates a significant competitive advantage for you and your business. This will create improved results and deliver the affirmation that will help you make more decisions.
As always, it is up to you – your attitude will determine your altitude – by taking a more positive and optimistic view on things and actually making (and implementing) decisions, you will be so much better placed to set yourself apart from your competitors.
It is not a matter of luck. Defy the doomsayers. Believe in yourself. Act.
Richard Watson has written a very thought-provoking piece on the issues that are arising in society with regard to the rearing of kids.
His post posits the thought that if we don’t let them muck around outside and get (gasp!) dirty, then we will see increased levels of allergies and the like. I tend to agree with him – having kids sit in front of a computer or TV or some other electrically powered gizmo is not going to do much for their co-ordination, socialisation or developing interpersonal skills. Mind you, it will help them develop their strategic skills and possibly spatial awareness.
I know only too well, the computer is a very good babysitter – it’s available 24 hours a day - it’s always there to amuse and entertain them but is it really the right thing for them? I read some time ago about kids at school who were having to be taught how to do really “out there” things like climb trees. This is sad but is a reflection of today’s society.
Have we become too protective? Has the fact that the “bad stuff” that happens is now more widely publicised and as such, as parents we verge on the state of paranioa about our kids playing outside unsupervised? Is the world really that much of a worse place than when we were growing up?
I encourage you to have a read of Richard’s post here.
Can’t tell you too much about this one, but we’ve had a huge win with one of our customers as a direct consequence of structuring advice we gave them years ago.
Our advice was carefully planned and considered at the time it was implemented and the “other side” (which included some of the best and brightest in Australia) could not undo what had been done.
End result? Ecstatic customer. Savings to them? In excess of $5 million.
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