Taking Responsibility, Rather Than Being an Angry Victim

"On Trade, Angry Voters Have a Point" ... This is a very weird election year. I can't believe the lack of professionalism and respect....it's a new low in American politics. But who is responsible? Who allowed our politics...to become???? so political? We elect the bozos in Washington. It's true they pander to $$$, but they still need to get the votes. Washington is a problem...but not the only one. Excessive $$$ for CEOs in the Fortune 500 has been a factor in many poor outsourcing decisions. Angry Unions in the auto and aerospace industries overplayed their hands in negotiating with management. Giving management little choice in some instances other than to move production elsewhere (not saying management was perfect or even good). And many of those "Angry Voters" referenced in the NYT article have shopped at Wal Mart for years buying 'low costs' imports from China rather than paying a couple dollars more to keep local retail businesses and U.S. manufacturing jobs. Getting angry is not a solution. There are jobs for people with the right skills. We need more critical thinking skills, less I'm a victim, and more get up and go do it. We used to be a nation of 'doers.' Let's start taking responsibility and acting appropriately.

Lean and Strategy Deployment Non-Profits

Case Example of Strategy Deployment
A number of years ago, a famous Chicago institution, “The Old Town School of Folk Music” (OTSFM), was having a near death experience. On revenues of a few hundred thousand per year (perhaps $1 million in today’s equivalent dollars), the school was losing an amount equal to 40% of revenues per year, with no money in the bank. The school had ceased to be relevant to its markets, and new customers were not being attracted to the school’s programming. In order to survive, the school needed to develop a new strategy. So it developed three:

1. The school could not pay its bills, so one strategy was to reduce costs and raise cash. Goal: Return to net profitability within 12 months.
2. Develop relevant new products to attract new customers. Goal: Increase revenues by 40% per year through new product offerings.
3. Raise money to renovate the school’s main building and conference hall. Goal: Raise $600,000 over the next 24 months.

A new Executive Director, Jim Hirsch, was hired at the beginning of the turnaround. One member of the Board and Jim reviewed all of the financial numbers and decided what they could control, and where cuts were necessary. Reducing costs was very painful as it required laying off guitar instructors, who were struggling to make a living as artists. The little that the OTSFM paid them was still a meaningful amount in their lives, but an expense the school had to reduce in order to survive. Amazingly half of the staff agreed to work for free, during the transition. They understood the situation faced by the school. Each creditor, and there were many, to whom the school owed money, was met face-to-face. A plan was offered to pay them; if they could extend a little more credit to the school.

Growth takes time to build, but cost reductions can happen (no matter how painful) immediately. The school faced several tough choices. The school owned two buildings. It was a painful choice, but the school needed to sell one of its buildings, so that bills could be paid and agreements kept.

The school also needed to look at its programs and concert offerings to the public. The school’s programs were pretty much geared to a middle-class, middle-aged, white-faced public. If the school wanted to survive over the long term, it needed to offer more exciting products (concerts, lessons, etc.) and draw in a broader, more ethnically diversified customer base. The OTSFM expanded its concert offerings and guitar instruction lessons. A new ‘Wiggleworms’ program was put together to teach music to little children (under 5 years old), and Jim put together a “Latin Music Festival” that was the first such offering in Chicago by a non-Latino institution. Both of those programs resulted in significant revenue increases for the school.

Execution of the above changes was primarily done by the school’s staff. The board (a group of volunteers) took responsibility for raising $600,000 to do the renovation. Just like a good song needs a ‘hook’ to resonate with a listener, the school needed a ‘hook’ to interest funding organizations and individual contributors. The school’s success with its new products for a diversified audience was a primary reason funding organizations agreed to provide support to the school’s capital campaign.

A number of other changes were also made, but cost reductions came first. Key metrics were directly related to the above goals and were monitored on a weekly or monthly basis they focused on: reduce excess teaching capacity, free up cash, pull down all non-vital costs, make and keep agreements, fulfill all commitments made, and raise new revenues.

Fifteen years later, the school has had a renaissance. Its annual revenues are in excess of several million dollars. It successfully renovated its old building, later a new one was purchased and renovated with money from an even larger capital campaign. The new venue has a larger concert stage and teaching capacity. That new building helped to lead the way for revitalizing a Chicago neighborhood. Currently, the school’s concerts and teaching programs are full, and there is a very healthy involvement of volunteers, customers and staff. It impacts more people’s lives today than at any time in its past.

The above story is excerpted from our most recent book, "Escape the Improvement Trap." A story about why most organizations fail to improve their competitive position, even though they get better after adopting an improvement methodology like lean or six sigma. http://tinyurl.com/44osfyu

You can check out the Old Town School of Folk Music at http://www.oldtownschool.org/

Launching a Consortium in Chicago

We are looking to do something new in the Chicago area based on a very successful model in Canada. High Performance Solutions has been facilitating consortiums (referred to as Leveraged Learning Networks by the MIT Sloan Management Review) for more than 15 years. Members of the consortium on the average have been able to improve their lean effectiveness scores by 100% over a three-year period.

What is a consortium you might ask?

The Consortium will be driven by the members to ensure its agenda aligns with their needs. They will come together as a group to share best practices, share knowledge, share skill sets, share training, and accelerate practical learning for every employee in the member company, not just leadership.

Our target is bring together 12 to 15 companies within easy driving distance of each other who wish to cut through the rhetoric to achieve sustainable continuous improvement. To do it they will apply Lean Thinking to introduce tools and techniques that can help member companies to implement sustainable solutions in the fastest possible time that will have a bearing on their competitiveness.

It’s a challenge in the current environment – do you wait for clear signs that the recovery is here? Or do you invest in improvement projects now to obtain a competitive advantage? A recent article by McKinsey & Company strongly suggests the latter. The crisis: Timing Strategic Moves; Richard Dobbs & Timothy M. Koller; McKinsey Quarterly, April 2009

I thought it might be fun and informative for us to share our progress getting this new venture underway. Would appreciate your feedback.

Advice to Son on jobs and time management

Not sure how to get started in this medium....so I will begin with a comment made to a question from a young 20something yesterday on time management and his excitement and frustration getting his career started. He has just started his first 'real' job and having a hard time finding time to do what needs to get done.

To some degree welcome to the real world. My son just graduated from school and also started his first job. If he came to me, with your question on first job and time management....here are a few things I might share:

First it is natural to have this tension. You just left the old world and entered a new. To some degree you are going through a transition, and you just need to weather it. If you look at any of the books (better yet an article - since it is shorter and will take less time) that describe dealing with change it might fortify you. If reading something helps do it....but know that in any event....
You will survive this!

Stay positive for yourself...you just graduated from school. You found a job (not an easy thing to do today's world) and you like it. Even if you are feeling somewhat down (and we all do from time to time....no matter how old we get, it still happens now and then), try to put a positive spin on the days activities. Recognize your successes, don't forget about them just because that goal is accomplished.

If you are putting in too many hours (and that is not clear from your message), what can you let go? Half of our day is often spent doing busy work (things that don't matter). If it is not clear to you where your time is going.....track it in a simple way for a few days. You can get detailed doing this or high level (different people need varying levels of detail to understand). Every 30 minutes (was I largely productive (doing something you feel is meaningful) if yes...couple key words about what it was.....or were you unproductive (doing something you think was largely not meaningful) again a couple of key words. Then take the 3 biggest wasters and try to minimize them over the coming weeks.

If you are feeling overwhelmed. Try to put some words to it. Don't stay at the high general level. Ask your self "why" five times (a common problem probing model) and keep digging down to get specific, where you have identified something you can act on. See if that sheds some light. It may help.

What Andy (my son) and I did recently discuss is - 3 important things you (he) need to do over the next two to three years at the start of your career:

1. Over deliver. What ever you are asked to do, go the extra mile. But don't just over deliver anything. Try to understand the context of what you are being asked to do. How does your assignment fit with other things underway in the business/organization. Make sure you understand the expected deliverables before you start, to cut down on false starts. seek input from those around you to learn. The Carlos Goshen book "turnaround" is one of my favorite on "execution."

2. Stay focused on what is important. Over the next three years you are building a base for the rest of your career. It is a wonderful learning opportunity. Very different from school learning. Your first job though is still very much like school and that it is about "you." You need to be learning, you need to raise your hand (metaphor only) and say yes I can do/know that. And you need to deliver. If you are working with good leaders they will help you develop.

3. If you are an introvert (my son is to a degree). You are going to have a tougher life succeeding in business. That does not mean you need to become a type "A" personality. But you do need to find a way to let the world see the capability that is inside you. People just will not take the time (for all the same reasons you are stuggling with time) and probe to learn about you. Let people know what you are thinking (or that you have a thought) by asking good questions (open ended), by being enthusiastic (not in a gushy way...but that you do care), and that you want to learn and contribute.

Later when you become the leader, your role changes. Then it it not about you...it is about them...the people who work for you....you are then responsible to help them develop and excel. So for the monent....you are the learner....seek out (just like you did on this list) people whom you trust and who can help you in work and in life.,

The beginning of a career is a very exciting time of life. Full of possibilities! Many paths to choose! And great learning opportunities....remember to have fun...along the way. You will fail at somethings. Learn from them, don't make the same mistake twice...and don't be defensive about any errors. Maintain integrity in all that you do and don't waste a lot of time judging others (what happens to them, over the course of your life, will not be meaningful).