2009: It Wasn’t Pretty

Let's face it, be real and call it what it was: 2009 was a bad year. No need to list the negative news the business world kept getting pounded with all year. Most every industry took a punch in the gut at some point. Some industries got hit a little harder and were dropped to one knee. Would you say this was one of the worst years in decades? Yes, I think that would be accurate. Now that that is out of the way...

What happens next?

Global competition didn't stop. Your national competitors are putting their brain trust to work on finding the solution to emerging stronger. 2010 is not the year to cut budgets, sit by and lick your wounds so you can consider it a year of getting back on your feet. That is what January is for. The rest of the year you need to have your track shoes laced up and double knotted for the race that will determine your next five years of growth.

Define your path to point B

Sure 2009 was a curve ball and your plan for getting from Point A to Point B no longer works because you no longer can see Point B. I hear many executives so confused with their organization's direction because of the turmoil of this year, they seem ready to just idle until the fog lifts and the picture gets a little clearer. The fact is, we are going to be traveling in foggy times for quite a while and no one can afford to just idle. Point B is still out there, granted the road to getting there has changed.

Map a different path to reach your destination.

Might it take longer? Yes, it probably will. Will it be a tougher road? I think over the last 15 years the path to business success has shifted dramatically and become much tougher. So have most avenues to success, but people still achieve tremendous accomplishments.

Use the beginning of the new year to prepare for the success you owe it to your organization to achieve. As long as you know the path, believe in the path and are willing to put in the leadership effort to walk the path, 2010 can become a much different story than 2009.

The All or Nothing Business Model

What happened to the middle ground? The extremists have taken over and executives need to avoid falling into the trap of all or nothing. How many public figures make a mistake and someone is calling for their heads? Politicians, athletes and other public figures are one misstep from being called to resign. In fact, this is going on in our corporations as well and it is a very dangerous way to manage.

I have client executives who told me a year ago how valuable a particular employee was to the success of the organization only to hear twelve months later the executive is considering firing that same employee. I asked the executive what significant errors had this employee made over the last year? His response? Nothing significant, I’m just not as impressed as I was a year ago. When I pressed for more details the executive told me the once superstar had taken time off for some minor surgery and was gone during a critical time of the year.

There is nothing wrong with challenging employees to step up. There is nothing wrong with setting high expectations. There is nothing wrong with striving for excellence. But, when someone can go from the best to being considered for termination because of one failed attempt or one questionable event (surgery, really?) the work environment is caustic.

All or nothing employment will create disastrous consequences. Consider these three effects of an all or nothing environment.

1. Us against them

Look at our government right now. There is no collaboration and the fight between the parties is so caustic that the country suffers as a result. Right now the Democrats are enjoying their majority and passing legislation in the face of Republican protest. As always happens in politics the tide will turn and the Republicans will do the same thing in response, and the battle continues it just keeps getting nastier and nastier. Is this anyway to operate a successful organization? Once lines are drawn people will fight to the end even at their own detriment. Think this doesn't happen in business? Ask the leaders of General Motors and the Autoworkers Union how their loggerhead mentality has prospered?

When you create divisions in the workforce and set up a one mistake and gone atmosphere sides will be drawn and factions will try to take control and the focus of energy will be on winning the internal battle as the bigger picture sinks. Collaboration is a better path to success than combating factions.

2. CYA

When you place every employee on a one mistake tight rope suddenly people become much more interested in adopting a cover-your-ass style of thinking than in a how-can-we-get-better type of thinking. Survival is the most basic of instincts and teamwork, profits, and innovation will be abandoned in such circumstances. All or nothing makes everyone more interested in blame focus than in solution focus. It a blame-focused work place really the work environment you believe produces the best results? Think again.

3. The Fear Freeze

Imagine The University of Kentucky basketball team is playing a big game against the University of North Carolina and one of the coaches is fed up with all the personal fouls his team has been having so he tells his team over the noise of the crowd just before the tip off, "If anyone gets one foul they will be pulled from the game. No fouls or you are gone from the game. Got it?" What possible chance do they have of winning? The players will be frozen in fear every time the ball comes down the court for fear of being pulled out of the game.

If you have been laying off employees, creating fearful announcements in your workforce or making extreme comments to try to inspire your work force you are probably witnessing some of these effects of the all or nothing managerial approach. It’s time for leaders to avoid the extremes and return to middle ground where employees can make mistakes in the effort to improve, grow and innovate.

Whispers are Now Broadcasts

My parents' generation barely wanted to talk about sex with doctors let alone in public, and today with social media and phone technology we are so open with our thoughts we have a new word: sexting. What was once whispered is now considered broadcast worthy.

Between twitter, facebook and texting millions of people feel the need to express their every emotion, thought and circumstance. That behavior is slopping over to the real world too. Recently I was in a poker tournament and the young man beside me started just going off about what he was going to do based on my actions. It is rude to talk about a hand while it is still in play so I asked him what he was doing. He told me he was talking to himself. Another person immediately chimed in, "We can hear you!"

This is where we are in society -- out loud, unbuffered thinking and communicating. Is this the transparency we really need? Social media is becoming the self-help group therapy session for millions of people and it is changing how society interacts. The lines are blurring of what is considered professional, confidential and appropriate.

Had a bad meal at a restaurant? Tell everyone and take a picture of the food to post. Dealing with a rude customer service person on the phone? Tell the world.

People are creating hate blogs, corporate bashing websites and editorial commentary on anything and anyone. This is changing business interaction and creating ethical questions for organizations.

Can an executive read an employee's posts and take action based on what was posted? Can an employer read a prospective employee's twitter postings (tweets) before the interview? Can a business file a suit against a customer for false reporting of a negative situation? How does an executive handle a negative thread of posts on their corporate facebook page? Is that censorship or good business?

These questions and many others are raising the stakes on the open communication in social media. Executives need to crate policies to deal with these broadcasts from employees, customers and cowardly bashers who have been given a forum to vent.

As we've seen with the Tiger Woods story, a person can go from role model to pariah in a matter of hours as people heap opinions upon opinions in open communication. In the age of instant communication and unvarnished baseless opinion organizations need to be ready to handle a firestorm that was once whispered but now is an open broadcast. The rules of communication have shifted dramatically in the last 12 months. Businesses need to create the proper response within the next 12 months or risk the loss of control on your brand, business message and information.

The End of Year Sorting… Through Your Mind

It's that time of year when many people decide to sort through files, desk drawers and office shelves getting ready for the new year. The annual office cleansing ritual is a way to prepare for a fresh beginning. But are we clearing out the right things to truly prepare for a fresh start?

I believe the files and desk clutter are not the most important cleansing needed to start a new year with a fresh start. Take one day for your physical clutter removal and spend the rest of a week removing the mental clutter because this is where the greatest obstacles exist for starting anew.

Remove the mental pain

"Sticks and stones can break my bones but words will never hurt me" may have been true in simpler times, but in today's world words cause much greater lasting damage. Remember the crushing remarks your boss make in the heat of emotionally-fueled conversation? Of course you do. How about the argument with a fellow executive where snide comments were made that still hurt? And that hundredth phone call that never got returned from a prospect? That was the day the phone became too heavy to pick up again.

This is the clutter that is a much greater obstacle to a fresh start than old files will ever be. Take the time to cleanse these memories if you truly want to make a fresh start on the coming year. To renew your vigor for the job and refresh the excitement for coming to work this is the right time to wipe this mental pain from your memory. If only it was as easy as washing a blackboard.

Cleaning office clutter is mindless work. Cleaning your mental clutter is intense work, and the payoff is well worth the effort. What are the memories you need to get beyond? What are the words that were said in the heat of the moment that have been given much greater credibility than they ever should have been given? What is still a thorn in your brain that triggers unwanted emotions? By working to clear this clutter you will return to the excitement you once had for your work.

Ask yourself 4 deep questions

When I do my annual end of year mental check list I find it best to ask myself questions to gain clarity to see if I am ready to take on a new year totally stoked and ready to hit it..

1. Do I still love what I do as much as when I started this business? If not, why not? And what am I going to do to restore that? Side bar: I hear so many executives tired this year, fed up with the negatives, concerned with the rapid changes that are happening, this may be the most important question you could ask yourself to prepare to be successful in the coming year.

2. Do I have the energy required to create a successful year? If not, what habits do I need to adjust in order to have that energy? (I'm not talking resolutions, I'm talking behavioral shifts!)

3. Where is my excitement level for the work I see coming in the new year? Base this on a scale of 1 to 10 with 1 meaning I'd rather be anywhere else but here to 10 meaning my work is more enjoyable than vacation.

4. What areas within me are holding me back from delivering the ultimate performance in the coming year? What do I plan on doing about that?

I take the week between Christmas and New Year's Day to work on my mental de-cluttering and strengthening. It's the perfect time of year to cleanse, refocus, and clear the air in preparation for a running start to another great opportunity.

No Time for the Timid

At the end of one of the roughest economic years in recent memory leaders have a great challenge at hand. Government is having greater impact on significant industries such as auto, finance and health and the trickledown effect will be a tidal wave of impact.

Are you ready?

The leadership approach of "wait and see" is no longer an acceptable strategy. The longer you wait, the more changes are going to happen, the more behind you will get. Obviously, I'm not saying take a "ready, shoot, aim" approach because you will need to digest the volume of changes that are coming and interpret the impact on your organization. However, once you have that understanding to the best of your ability it’s time to take action.

Clear picture no more

Not that many years ago the business world was a clear picture of how to make profits, gain a bit of market share and know who the competition was. You can't wait for the clear picture anymore. Visionary skills at the top are more important now because the picture isn't so clear. A leader has to be able to see through the fog and recognize where their organization needs to be heading. Executive ability to lead in a storm is trait most needed in business today. These are not times for the timid.

Over the next few years businesses are going to fall into three categories and the leadership of each organization will determine which category those organizations fall into.

Passive

These organizations will be late adopters and want to follow trends. These executives are more interested in hanging in the middle of the pack and hoping others will determine the path the industry must follow. The only problem here is how fast things change now. By the time the passive organization joins the trend, the wants of consumers has already shifted and these organization will only be serving the stragglers. Passive organizations will always be looking to cut budgets and hope to make profits at the end of the year.

Old school

This category of organizations is the group that just believes in doing things the old fashioned way based on the thought it worked fine for the last 40 years it will work fine for the next 40. Old school organizations resistant to change have a short life expectancy. The Big Three auto makers are the best example of change resistance to the eternal detriment of the company. Change can be scary and sometimes executives just want things to stay the same. Unfortunately, business is progressing rapidly with increasing speed and these companies will be lost and left behind to suffer a fate of either closing, being purchased, or broken apart. In this category the smaller the company the shorter the life expectancy.

Aggressive

These organizations are going to be looking for every advantage they can possibly exploit and take the necessary risks to make it happen. They will shop for top talent, pay high salaries and take the occasional long shot. The workloads will be tremendous and the commitment extensive. This is a group that thrives on change, and desires to be in the forefront of the industry.

Some organizations will project well and make huge strides; others will miss the mark and most-likely cost the executives their employment. This is a gutsy group that lives for winning. The risk is high but so is the potential payoff.

As you can see, the business world, no matter which category you lead your organization into requires risk and courage. It’s up to you to decide which path you feel best to be part of. The day of the timid leader enjoying the ride is over.

Failure? Not a damn chance

2009 is on pace to record close to 150,000 commercial bankruptcies to go along with almost 1.5 million total bankruptcies. That is a lot of lost wealth and lot of crushed dreams. Businesses have failed because leadership was poorly matched with the situation they encountered. Whether it came on suddenly or gradually, the leadership missed important steps to preventing the failure from happening.
How do you prevent getting into such a dire situation when the best choice you have left is to ruin your credit rating and get into a disastrous financial situation for your organization? You have forethought and rely on these three steps.

Obstacles are a guide post

Along the way to every bankruptcy were poor decisions and misunderstood obstacles. Obstacles are not always best dealt with by waiting from them to get out of the way. You can't throw money at obstacles and hope that will make them to go away. Just going around them and not considering the new direction you just took is also a poor decision.

So what do you do with obstacles? Sometimes obstacles are an indicator a new direction is needed. But make sure you know where the new path is heading other than simply around the obstacle. When you encounter an obstacle to the normal flow of your business, stop a minute and think what it means.

Obstacles will show you what you are doing incorrectly if you stop and pay attention. Most people are of the mind set to plow forward and charge through on the same path they have always taken. In these times of rapid upheaval change, it's the right time to stop and think what your obstacles are telling you. They could be warning signs of greater problems down your normal path.

Refuse to lose

What does it mean to refuse to lose? Continue to bang your head against a wall until you are unconscious? Of course not, "refuse to lose" is more about commitment and dedication with a healthy mix of business savvy.

Bankruptcy had become too easy in this country and poor decision makers were using it to wipe the slate clean of mistakes to get a fresh start and letting others pay for their mistakes without making the effort to save the mess they created. The bankruptcy reforms of 2005 tightened the rules on these folks making it tougher to file for bankruptcies, but the mentality of business owners haven’t adjusted as fast as the law.

I see business leaders throwing in the towel because the work seems overwhelming. I've seen small businesses disappear because owners simply quit. Most business failures don't happen overnight unless there was a disaster such as a fire or a devastating law suit. This is not a popular opinion I know, but most businesses fail because leaders either were not paying attention or didn't have the energy to do what it takes to refuse to lose. If there was ever a time to have mental toughness, now is the time.

When you dig deep surprises happen

Innovation never happens unless someone is trying to solve as problem. When times are challenging and you feel backed against a wall, dig deep for new ideas, fresh thinking and new solutions.

We never know what we are fully capable of until we are fully tested. Don't shy away from challenges, embrace them. Don't throw in the towel, stoke that fire from within and drive harder. Failure? It doesn't stand a chance when you are fully engaged and committed to coming out on top.

5 Ways to Get Your Mind in the Game

Watching college football games over the weekend and thinking about how we are coming to the end of a challenging year I am reminded how critical it is for us to be focused because there is such a slim margin between winning and losing.

1. Your morning pregame

All athletes know the importance of pregame preparation which is why some are almost obsessive to have the identical pregame routine before every game. Listen to the same music, have the same meal, even to the point of in what order they put on their socks. Lack of a structured pregame can have a negative impact. I've witnessed games lost because of the attitudes in the locker room before the game ever started.They just didn't have their minds ready for the game.

Rushing into your office at the last minute with a cup of coffee and a half eaten Danish isn't how to start your day. Neither is wiping away the sleep from your eyes because you stayed up late watching the game the night before.

Define your perfect morning pregame. What should you eat? How much rest should you have the night before? What are you thinking during your commute? What is your excitement level for hitting the office door charging into your day?

The next time you watch a college football game imagine the team strolling onto the field just before kick off still pulling on their uniforms and grabbing a snack. Would you think they were prepared? Why do you accept that losing behavior in yourself? Get in the game before the game.

2. Clearing your mind of distractions

Athletes with off the field problems frequently tell reporters they enjoy being in the game because they get to block out the distractions and focus on winning. How many office mates do you see wasting time, energy and effort on distractions outside of the job? When you are at work are you AT work? When I pay to see a concert I expect the band to be in the moment and deliver their best effort I paid to see. When I see an athlete play I want to see a focus that is on nothing else but winning the game I paid to attend.

Your employer paid to have you deliver your best performance. Are you focused enough to bring your best to the table? Once upon a time people brought their work problems home. Today, people bring their home problems to work and their performance reflects this distracted behavior.

Get in the game. Leave the distractions for another time and get your focus on like millions are counting on you to deliver the victory -- because you employer, customers, potential customers and employees are.

3. Know your role

I saw a great quote of a military edict: Shut your hole and know your role. Imagine if you adopted that approach to the rest of the year of work? In the final three weeks of the year create a focus that isn't about small talk and gossip and instead was a pure focus of getting things done you know need done. Perform your role you know makes things positive happen. Forget the chit chat, zone in on the task at hand.

4. Have a plan

The night before you check out of your office did you leave a specific plan for the next day? Without that plan most people lose the first couple of hours of the morning trying to get the day started in the right direction. Imagine your job is a movie and when you turn the lights out in your office for the day you hit the pause button on the movie. The next morning when you throw on the lights for the day you hit the play button on the movie. No warming up, none of this "Now where were we?" No refiguring what needs to be done. The movie picks up on the line of dialogue it paused at with a seamless plan (script) still in place.

A plan will give you that type of consistency day to day that will help you get many more things accomplished.

5. Execute the plan

I hear executives tell me they do write down their plans for the next day the night before but when they hit the office in the morning there are unforeseen demands and distractions and some days they never get to the plan. Sounds to me like the job is in control of the executive instead of the executive being in control of the job. When you have a plan and execute the plan you know how to deal with the few distractions that come up.

Having a plan and not sticking to it, is nothing but a Santa Claus wish list of things you want to happen. Everyone wants to win, but those who win are the ones who have their mind in the game.