Category Archives: On Management

VP goes back to the classroom

Business Leaders in non-Business Places (BLiNBP) is a programme aiming to spread business insight and expertise, by placing prominent members of the business world in non-business areas. This is John’s story.

John, 45, is VP of a Fortune 500 Company, with more than 20 years of management experience, and multiple books on business strategy to his name.  A keen supporter of the programme, he took 4 weeks out of his busy business schedule to work as a nursery teacher at Bilstock Junior School, responsible for a class of 15 pre-school children.

“I wasn’t fazed at all upon arriving,” reports John.  “I have taken over business units of more than 100 grown adults, so the idea of taking over a class of toddlers was child’s play, if you’ll excuse the pun!”

John swiftly put into action the principles that he had applied in his business career, generating a list of KPIs, carrying out a SWOT analysis on each member of the class and identifying key learning milestones that would need to be met.

As is always the case when a new leader comes onto the scene, there were some hurdles to be overcome. “A lot of the team-members kept asking where their mothers were, which was pretty unprofessional,” John explains. “The previous Team Leader even appears to have had a mid-afternoon nap policy, which was a huge waste of class time.”

John soon put these issues to rights, and felt that great progress was being made. “Words learned per day was up 37%, and we were soon counting up to 20,” reports John. “I was quite smugly satisfied with the changes I had managed to enact in just one week.”

However soon it became clear that all was not well. Despite the colourful nature of the classroom, Google this wasn’t. John was very concerned: “It was apparent in week two that morale was not high, and that soon trickled down to negatively impact productivity.  Sean wasn’t even able to distinguish between turquoise and sky blue!”

John was at a loss for what to do, having been so high after week one. What had gone wrong? What was wrong with his 5-day plan?  It was only when he was sitting down with Jessica, previously one of the class’s most precocious performers, that it became clear.  “We just want to have fun,” sighed the 4-year old.  “Miss Richards used to let us have fun.”

“It was a kind of Eureka moment for me, really,” John recalls. “I had gone full speed ahead with my plan without even considering our overall strategy, what business we are actually in. I was acting like we were a Learning company, when we are really a Learning through Fun company. I had forgotten half of what we were!”

Having had this realisation, John quickly went about bringing the fun back to the classroom. Toys were brought front and centre of all learning activities, and nap-time was back on the agenda. The change was instant and profound. “Laughter returned to the classroom, and our KPIs went through the roof. Sean even started writing Haikus!”

The four weeks quickly passed, and it was with a heavy heart that John left Bilstock, with the irony being that the teacher had very quickly become the student. “I like to think that I brought some new things to the classroom.  My “Always Be Colouring” initiative, for example, was a great success,” said John. “But the lessons that I have learnt at Bilstock will stay with me for the rest of my career.”

John was quick to put in place his new learnings upon returning to his job, redefining his company’s go-to-market strategy.  “I had forgotten how important it was to remember what business you are in, I had to hear it from the mouths of babes. We have changed our strategy, and have seen dramatic growth as a result.”

John is still in touch with his class: Jessica is now a non-Executive Director on the board of his company. He naps regularly, and has “never felt better. It’s like an afternoon energy boost!”

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Less meeting, more doing

In the early years of my career I seemed to spend all my days in meetings, one after the other from nine to five.  In general a lot was said, but all too often I found that too little was achieved, with the resultant verbatim Minutes document a poor substitute for the actual minutes lost along the way.

The potential people-hour cost of meetings has been noted elsewhere, with Harvard Business Review estimating recently that one company’s weekly meeting was taking up 300,000 people-hours per year!

This frittering of time always bothered me, with so much time spent merely meeting people, most of whom we probably already knew!  That is why in 2009, when I was in a more senior position, I implemented a seismic change in my company’s working culture, transitioning from Meetings to Do-ings.

While this may appear to be a basic change in company lexicon, it actually had a profound effect on the daily productivity of the business.  Suddenly the focus was on what would be done, as opposed to who would be there.  Where previously we were emphasizing the communal aspect, we were now all about what would be achieved while we were together.

This cultural change organically developed, altering the whole Do-ing occasion within the business.  Where previously we received meeting invites, we started receiving Do-vites.  Conference calls became Done-ference calls, and Minutes became Done-things.  With each definitional change, we saw a boost in our KPIs, from employee productivity to operating margin.

While we do still spend lots of time together discussing things as a team, we are no longer wishing the time away.  So perhaps next time you find yourself confronted with a directionless meeting agenda, you might move your focus from Meeting to Doing.

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Making small business more like big business

Google was founded in 1998.  Facebook was founded in 2004.  In a world that has been transformed by companies that are younger than the legal drinking age, the startup has gained an almost mythical quality, with even the most cursory of Google searches yielding multiple articles encouraging  startup behaviour in larger, more established companies. Large companies with paltry single digit revenue growth are clamouring for startup gold dust, rethinking strategy, R&D and even hiring policy along the way.  However I am here to argue that the opposite should be taking place – why aren’t more startups acting like multibillion dollar corporations?

This may be against the currently held wisdom, but the numbers back it up.  Forbes’ top 10 companies in 2013 made c. $175B in profit last year, while most startups don’t even generate any revenue.  The latest and greatest startup tech companies might be valued in billions, but Walmart’s market capitalization is c. $250B.  So why on earth are business gurus imploring these leaders of industry to imitate their lesser cousins?  The sooner early-stage companies start to act like big corporate, the better.

As an entrepreneur, how is it best to go about this startup transformation?  The first step is obvious, which is to focus on shareholder value at all times.  While your shareholders are probably limited in number (indeed it might just be you), that doesn’t mean you shouldn’t adopt this crucial tenet of big business.  It doesn’t matter if your lead developer’s latest idea could get you 100,000 new users, what does that mean in terms of market capitalisation?  It doesn’t matter if a new idea might change the way in which people interact online – if it doesn’t increase your shareholders’ dividend then you don’t want to hear it.  These things are important to big business, and as an aspiring big business, they are therefore important to you.

Having realigned your company’s focus, the next thing to do is to introduce some bureaucracy.  Big corporate has lots of hierarchy, and so should you.  Establish a layer of managers between you and your front-line workers.  Hire some managers to manage those managers, with management team leaders to oversee it all.  Introduce committees, bringing in people with disparate views, interests and competencies.  Make sure that all decisions have multiple stakeholders, with diverse and vested interests.  Only then will your startup start to mimic the dynamism of big business.

When hiring your myriad management structure, the approach is well-established – competency-based questions. Often startups focus a lot on company fit, and technical skills, when they should in fact be worrying about times their employees have historically dealt with conflict.  What about your employees’ self-reported track record when it comes to team-work, and overcoming difficult problems?  I, for one, would never hire anyone who couldn’t give me two examples of times when they have implemented change in their organisation.  I would strongly recommend that you don’t either.  Rely on competency-based questions, and you will get the loyal foot-soldiers your company needs.

Having established your structure, and hired your employees, how should you go to work?  The key is to be as prescriptive as you possibly can.  Some foolish startups encourage “free time” and “employee creativity”.  This is to be discouraged, as it wastes valuable company time, and company time is company money, and company money is shareholder value.  Lest you even consider wasting shareholder value, I will refer you to my first point – Shareholder Value, Shareholder Value, Shareholder Value.  If you focus on that, you won’t go far wrong.

These changes may all seem large scale, and fundamental, and that is because they are.  But if you are serious about making your business a big business, they are changes that you will do well to make, and you will surely be glad when you have done so.

 

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