Corporate Culture: Your Organization’s Response to Stress

Culture is how an organization internally responds to things going badly. Revenue did not meet targets; the product was late to market; the competition beat us to market, our cost structure is out of line; our quality is suffering; we’re losing customers and market share; our web site is a disaster and our user interface isn’t much better; we’re being out sizzled and out sexied.

So what is the response? Panic? Anger? Fear? Denial? Not invented here? Blame and finger pointing? CYA? Retrenchment into process and bureaucracy? Freeze everything? Fire everyone? Reorganization? An investigative committee? An acquisition? Fraud/cooking the books? Surround everyone with everything we’ve got?

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The US Government’s Sequester – Anything versus Everything

Public sector government agencies at all levels – Federal, state, and local – have been talking and writing about enterprise performance management (EPM) for many years. Some are implementing EPM methods like strategy maps, KPI balanced scorecards, bottom-up driver-based budgeting, and activity-based costing (ABC) to measure the conversion of budget spending “inputs” for visibility of their “output” costs. Some do it well, but I sense only a few. There is some legislation requiring use of EPM methods such as ABC. But are their costing models too simple and highly aggregated to gain insights? Do they calculate them for compliance but not for decision support?

When they measure and report KPIs, how much is linked to accountability with consequences?

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Hey Leaders! Listening Isn’t Easy, But It’s Essential

I doubt that anyone reading this would disagree with the theme that it’s important to be a good listener to be a good leader. However, in working with leaders at all levels striving to strengthen their performance, listening skills aren’t an issue some of the time; they are an issue nearly 100% of the time.

For too many in leadership roles, either the Symphony of Brilliance (as in, “I know the answer” or, “I’m right”), or, the Symphony of Busyness (“I’ve got so much to do, don’t distract me”) playing in their minds, drowns out attempts at communication emanating from those around them.

We create our own barriers to active listening, and our performance suffers accordingly.

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The Debunked Devil

Nothing, but NOTHING, replaces genuine dissent.

Pope Benedict XVI’s resignation is in the news and commentators are abuzz with speculation on who will be his successor. Also elbowing for air time is a parade of church experts describing the centuries-old traditions for selecting that successor.

While much of the selection process remains untouched, one element was dropped exactly three decades ago. Strangely, we still use it in business decisions today… foolishly I might add.

I’m referring to the Devil’s Advocate. You have likely been involved in deliberations where, close to the conclusion, someone says: “We should have a Devil’s Advocate.” The thinking is that assigning one or more people to argue against the team’s conclusion is an effective stress test that produces better decisions.

It sounds good, but it’s wrong.

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Just One Thing: Will This Make the Boat Go Faster?

“Will this make the boat go faster?” is my new favorite question. I may quickly wear it out with my colleagues, but I suspect I’ll get my point across.

The original context according to Mark De Rond, writing in his excellent book, “There is an I in Team,” is from Rowing Club Manager, Roger Stephens, who when presented with an idea concerning his team would respond, “Will this make the boat go faster?”

Think of the myriad of situations you experience on a daily basis in the name of business performance where this question might serve as a valuable filter. Here are a few from me…please add your own.

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Historians versus Futurists – Who is More Valuable?

Futurists enjoy taking out their crystal ball and projecting future innovations, but they are typically wrong. For example, George Orwell’s book, “1984,” which was published in 1949, did not come close with its projections. And in the 1960s, I recall a Walt Disney television show describing automobiles that required no driver and were guided by a magnet-like strip imbedded in the street’s or highway’s roadbed. Nice try.

In contrast, historians research the past to determine what lessons might be learned and applied today. For example, historians examine the judgments, policies and actions of past U.S. Presidents and international government leaders to assess what actions may best serve citizens today. The recent movie “Lincoln” is an example.

But which group — futurists or historians – provides more useful information?

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When in Rome….

In many cases, speaking out of turn, encouraging debate, rethinking a strategy, is frowned upon, while maintaining the status quo is well received. But what happens to all these yes men when the dark clouds loom and the firm gets into a whirlpool of its own created problems and that were ignored?

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CFO at 28: Career Advice from a Seasoned Professional

President and CEO of the Institute of Management Accounts and CFO Insights contributor Jeff Thomson spoke recently with Ben Mulling, CMA, CPA, CITP, CFO at TENTE Casters Inc. and member of the IMA Global Board of Directors.

Ben earned his title of CFO at age 28.

They discussed the increasingly strategic role accounting and finance professionals are asked to perform and the skills necessary to advance in the profession.

For more advice on how to succeed in today’s marketplace, watch the extended video interview below.

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Finding Strategy

Knowing the purpose for the strategy is as important as building the strategy itself. So don’t wait to find your strategy when caught on the wrong foot, rather plan for the right purpose. The purpose should account for the best as well as the worst, and should plan for for issues to come.

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Carnegie’s Secret to Success? Networking.

One of the most impressive figures of the nineteenth century’s Gilded Age was Scottish immigrant Andrew Carnegie. He started off in obscurity and abject poverty, rose to develop the U.S. steel industry, became the wealthiest man in the world when he sold to J.P. Morgan, and went on to become the premier philanthropist of his time.

What was the greatest secret to his success?

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