Tag Archives: leadership

12 Tell-tale Signs That a Person Will Be Successful: What to Look for in a High-Value Person

By James D. Roumeliotis

Whether you’re looking to team-up with someone for a project, business partnership, hire for your organization ─ or even consider as a prospective long-term intimate partner (wink-wink), that individual, whether prospective or on the right track has certain traits which increase the likelihood of his or her success in life and/or business or profession.

This is by no means scientific. However, there are well-known characteristics of existing successful people ─ whether in their profession, trade, in business and or in any other endeavor. There is certainly a specific pattern that decreases the chances of disappointment.

Choose your key person or people wisely

Some people have the knack and intuition, whether they seek and hire talent such as an employee, bet on a senior executive or partner, for business development, or even choose an heir for their empire. What they look for, at the very least, are the following 12 high-value traits in a person, regardless of gender.

1] Ambitious: An essential start as it signifies the person has something he or she really wants to achieve. This could be considered his or her goal(s) in life and will go above and beyond to achieve them.

2] Self-motivated: Constantly taking action and initiative without any prodding by others. Showing commitment and drive to achieve. Likewise, passionate enjoying every moment spent working on a chosen pursuit.

3] Spends Time Productively: This person manages his or her time properly and cognizant that using time effectively increases the chances of accomplishing his or her goals. Among others, practical time spent may include activities such as exercising, reading, learning, volunteering, and devoting quality time with loved ones.

4] Timely & Reliable: They produce winning relationships and results. With such people, it not only means doing what they say, but it also means doing what is right, regardless of what they have committed to. They are results-oriented. If they tell someone they can do something or meet at a certain time, they have made a promise they keep. Being on time shows others that this a person of his or her word and makes the habit of always being on time for meetings and appointments.

5] Takes every Hurdle/Challenge as a Learning Opportunity: Recognizes what he or she is good at and polishes his or her strengths along with acknowledging weaknesses and works to improve them.

6] Enjoys the Company of Successful People: He or she understands and follows the stock phrase of “You’re known by the company you keep.” This person enjoys having others’ success inspire him or her. Those who don’t achieve success would rather be around smaller people because it makes them feel bigger. Moreover, he or she realizes the importance of support from those he or she admires when determined at accomplishing bigger goals.

7] Relentlessly Competitive: The people who are going to be successful in life are super competitive. It doesn’t matter what it is. It’s the one who sees winning as the job that needs to be done, so he or she will show up and do it each and every time. This person is determined to do it better, faster and to the fullest of his or her abilities than most people as he or she thrives on competition and welcomes the challenge.

8] Not a Fan of Excuses/Pretexts: Successful people find a way and refuse to cop-out, whereas failures find feeble excuses to avoid pain and commitment to their obligations and responsibilities.  No successful leader or entrepreneur makes excuses for inaction or action gone wrong. He or she make things happen regardless of the situation or circumstance.

9] Tenacious:  He or she knows that as long as he or she keeps at it, regardless of hurdles to overcome, a victorious outcome will be achieved. It’s all about persistence, perseverance, and determination to get things done.

10] Educates Oneself Constantly: This person has a growth mindset and mindful of the importance of permanent self-development, as well as very curious in nature who seeks to keep learning, discovering, thus improving his or her knowledge and skills.

11] Acknowledges Mistakes: This person is willing to admit to his or her flaws and errors and keeps refining himself or herself, as well as learn from mistakes so they aren’t repeat. In addition, this person possesses integrity with honesty and strong moral principles.

12] People Skills: A genuine interest for others and for long-term relationships. A person with a high EQ. Selfless, willing to help others do well with the ability to get the best out of someone, seeking mutual beneficial outcomes, and loyal to those with whom he or she has committed to. Thus, excellent interpersonal skills are essential for leading effectively.

How do you look for them?

It goes without saying that as far as knowing whether the person or people you seek possess the above characteristics, you ought to be familiar with them for an extensive time. It’s not possible from merely a casual acquaintance or interview.  With the latter, situational/behavioral questions can be asked which may give a glimpse of the candidate’s character and thought process. One way to spot them is identifying people who assume unofficial authority within the framework of their jobs within your organization. Such individuals possess certain traits that distinguish them from others on the team and build their credibility. Two other ways is either through casual or frequent observation over time or through a trusted referral from someone who knows him or her quite well and offers a personal endorsement.

In the end

Realistically, there is no perfect formula to any of this. No one’s ever going to fulfill 100% of the traits unless you’re seeking a unicorn. At the very least, one should expect somewhere between a 70% or 80%. If done right, much of the time, you should be able to put together an incredible team in your business so you will grow it and rise above and beyond. An effective leader doesn’t operate alone and neither taking all the credit.

On a final note, once ideal candidates are discovered and hired, good leadership and employers perform proper onboarding along with empowering them and providing ongoing training and development.

_____________________________________________________


Request your TWO FREE chapters
 of this popular book with no obligation.

EntrepreneurialEssentials - FrontCover Final

Leave a comment

Filed under business management, Business success, decision making management, effective leadership, entrepreneurship success, hiring managers, Hiring talent, leadership, management, reputation management, sales managementt

The Four T’s of Leadership: Truth, Trust, Transparency & Teamwork

By James D. Roumeliotis

Those, like myself, who are drawn to the discipline of “leadership” have read our share of articles, research papers and oodles of third-party opinions on the subject matter. However, most if not all of us, will agree that the definition arrives at the same conclusion: Leadership is a skill and talent, mainly by an individual, to lead, motivate, influence other individuals, teams, and entire organizations to act toward achieving a common goal. In business, this implies directing colleagues and workers with a strategy to meet the company’s attainable goals and objectives.

For leadership to possess credibility, it must earn three sacred principles: Truth, Trust and Transparency plus an additional and equally important one ─ Teamwork. These elements will be expounded below.

Leadership styles

Regardless of leadership style applied, the four T’s presence are not to be discounted.

Without going much into detail on the eight leadership styles, as this subject is an article or book unto itself, its effectiveness is summarized in the following table:

Leadership StyleCommonly EffectiveOccasionally EffectiveRarely Effective
DemocraticX  
Autocratic  X
Laissez-Faire X 
StrategicX  
Transformational X 
Transactional X 
Coach-StyleX  
Bureaucratic  X

The four T’s of leadership

The four “T’s” are considered the cornerstone to a leadership’s personality and long-term success. Those skills are all within reach and should be brought to the top of a leadership personality.  

Truth: Lack of truth expressed in any organization can take many forms. It could be departments not sharing information because it might put them in a bad situation with peers or it could be information not reaching a manager because no one wants to pass-on any bad news. Leaders need to know the truth to make intelligent business decisions and the employees at all levels should know the truth to do their jobs effectively. 

Trust: Without trust, a leader will not succeed instigating a productive team culture. Moreover, the most important attribute building trust is transparency. Leaders build up their team members’ trust by communicating transparently and truthfully – in other words, by being trustworthy. In addition to the importance of team members trusting their boss, it is essential that supervisors also trust their direct reports and facilitate their success by creating the conditions for it.

Transparency: A recent Forbes poll revealed that 50% of employees think their organizations were held back by a lack of transparency. When an individual or an organization is transparent, there are no hidden agendas and no information is being kept from people who need to know it. Transparency also promotes recognition of common goals. This is important because you are not stating one thing while covertly trying to achieve something else. Trust and transparency go hand-in-hand because transparency builds trust.

Teamwork: Teamwork is critical to success in any effort. Excellent leadership requires inspiring the people around them by empowering them, by enabling them to contribute their expertise as a collective and cohesive team, and ultimately trusting them.  Teamwork and leadership in tandem are important because they provide clarity for your team and have a direct impact on the vision of the company and its results.

The way these principles need to be applied will vary with each circumstance. However, the principles themselves remain the same. Therefore, leaders can and should apply these principles in an adaptable way.

The takeaway

Leaders must create the conditions in their organization to succeed, as well as trust their colleagues and workers to do so, and verify that they have done so ─ by keeping in consideration the proverb, “Trust but verify.” By applying the principles of trust, truth, transparency and teamwork, leaders will help ensure their teams’ success. I realize that helping others grow brings me fulfillment. I see how being an educator, mentor or coach and an advisor, as well as an employer are rewarding roles for me. 

__________________________

Request your TWO FREE chapters of this popular book with no obligation.

EntrepreneurialEssentials - FrontCover Final

Leave a comment

Leave a comment

Filed under Business, business transparency, crisis management, decision making management, effective leadership, inept management, leadership, management, reputation management

Shady and Dysfunctional Enterprises: Deceit, Greed and Short-sightedness in the Name of Profit and Market Share

by James D. Roumeliotis

Dysfunctional Company Hierarchy

Add to FacebookAdd to DiggAdd to Del.icio.usAdd to StumbleuponAdd to RedditAdd to BlinklistAdd to TwitterAdd to TechnoratiAdd to Yahoo BuzzAdd to Newsvine

Businesses of all sizes normally develop various pain points. A seasoned entrepreneur has actually made a list of 100. In the end, pain is a motivator for action to turn things around. However, the key is in how to tackle each one and in a timely manner. Better yet, how many of them are ever anticipated — and as a consequence solutions readily available? What is not anticipated are repercussions from poor decisions made or deceit deliberately caused with or without knowledge from company authorities. As a result, denial sets in from the top with accountability being dismissed.

Needless to say, chaos reigns within organizations which for many results in bleak outcomes. Within, there is a lack of communication, trust, transparency and loyalty. Not a sincere and astute way to operate a business.

By all appearances, there are plenty of executives who are simply results driven at the expense of their customers, employees as well as with their vendor relationships. Remarkably, most of those companies are publicly traded.

Corporations lack trust from consumers

A survey conducted by JUST Capital’s of more than 40,000 U.S. participants and groups indicates that the nation’s largest corporations are “going in the wrong direction.”

Overall, only 41 percent of all Americans trust corporations “somewhat” or “a great deal,” while 50 percent of more conservative Americans trust corporations.

aaa

Source: http://justcapital.com/research

The cause of distrust among consumers can be rationalized due to corporations misleading the public as a whole, as well as their shareholders. Deliberate misleading information by food producers in regards to nutritional benefits and nickel-and-diming by airlines, hotels and banks are causes for frustration, suspicion and loathing.

Sectors notorious for constant price gouging coupled with despicable service include, but not limited to, a select number of pharmaceutical brands, banking/financial services, cellphone service providers, cable companies, large food brands and airlines. Too add salt to injury, in the U.S. and Canada, pointless aggressive lobbying efforts by various industries yield their influence by means of generous contributions to political parties. They are also infamous for spending a ludicrous amount of money producing sly ads and propaganda which go against consumer wishes. Consider the soda lobbyists who, according to a NY Times article, “made campaign contributions to local politicians and staged rallies, with help from allies like the Teamsters union and local bottling companies. To burnish its image, the industry donated $10 million to the Children’s Hospital of Philadelphia.” Sadly for consumers and the city of Philadelphia, the tactics worked. Similar outcomes occurred in New York City and San Francisco. In the end, the soda industry’s rubbish of an astonishingly high calibre, comes as it does from the same producers of fatty chips to the semi-literate masses. Shameful practices include the deceitful marketing of chemically-calibrated and engineered to simply taste good processed food products that are making its mainstream market obese, thus unhealthy.

In certain types of large scale B2B transactions, there can be scope for unscrupulous behavior. One or both parties are tempted to forego ethics in favor of making the deal. Such relationships inevitably end badly because they are either uncovered by authorities, as well as not conceived with trust or respect.

Then there are the occasional devious companies that will do what it takes in the name of revenue and profit ─ disregarding authorities, customers and everyone who takes their trust for granted. Volkswagen’s blatant rigging of emissions tests with over 11 million of its diesel cars sold globally, 482,000 of which are VW and Audi brand cars in the U.S., is an ideal case in point. As a result of its mischievousness, the company known for its hard core corporate culture caused a great deal of damage to the environment. Their supposed clean diesel models have been spewing up to 40 times more smog-causing nitrogen oxide pollution. The recall is one example of a deliberate act gone terribly awry for a brand which wholeheartedly masterminded it with self-admission. Rather than sacking the CEO Martin Winterkorn, under whose watch this scandal occurred, and depriving him of his golden parachute, the supervisory board allowed the septuagenarian, Mr. Winterkom, to conveniently step down and take home a lucrative compensation package.

contact this author for his pragmatic and practical approach.>

Corporate governance or lack thereof

The term “Best practices” is not merely words but deeds. What is required is an efficient implementation of strategies, quality controls and delivering more than lip-service. Evidently, it is not easy, otherwise, many more businesses would be performing admirably.

To understand and penetrate the corporate governing structure and “culture”, you need look no further than the upper echelon of the hierarchical tree. It is where procedural decisions are shaped and executed. One would think and expect an entity’s leadership to head the enterprise by governing its long-term growth and sustained wealth. Conversely, there is a constant search for the “ideal” human resources. Recruited and fresh talent must resemble the leadership in tone and style. Call it the organization’s DNA. Exceptional organizations are good at these types of corporate strategies, thus strengthening performance effectively.

In the end, leadership ought to foresee and prevent any potential scandals, apply checks in balances, inspect what is expected, keep corporate structure layers to a minimum, and keep communication channels open.

Customers first, employees second — investors third

In the ivory towers of public corporations, the CEO and board of directors have been programmed to put their stakeholders best interests above all else. Their mission is to do what it reasonably takes to deliver quarterly results ─ in other words, to focus on the short term rather than sow the seeds and do what is most beneficial for the future direction of the company ─ despite any short term pains. Savvy and considerate top management know better that customers and employees are the two key drivers of corporate success.  The main principle is that if employees have a positive attitude, are passionate, well trained and competent, results will be reflected through positive customer experiences resulting in brand loyalty. Ultimately, the shareholders will reap the benefits through stock performance and generous dividend distributions.

Jack Ma, the founder and executive chairman of Alibaba Group, a family of highly successful Chinese Internet-based businesses, made a public statement which may have surprised the investment community. He publicly stated that, “Our customers come first, our employees second, and our shareholders third.”  The highly regarded membership-only warehouse club COSTCO performs actions consistent with one’s claims as they too follow Jack Ma’s mantra. The impressive financial results year after year speak volumes as they retain the best intentions of their employees and customers.

It took Amazon quite long to finally earn a profit since its inception. Founder Jeff Bezos and his senior executive team dug in their heels despite outcries from many of their shareholders for continuously making large capital investments with no profits in sight. For a while, plenty of cash was spent for IT related infrastructure including Cloud computing and everything related to giving the company an edge over the competition. Customer service and the customer experience have been priority no. 1. In the end, shareholders who lingered learned that patience with their investment in Amazon is a virtue in the long run.

The attitude of the individuals in the boardroom had better be that if investors are impatient and eager for quick monetary results, they can take their money and invest it elsewhere.

Advice for start-ups: ‘Steady as she goes’

A well-oiled operation should consistently head steadily on its current course regardless of any obstacles that get in its way.

Research by the U.S. Bureau of Labor Statistics reveals that nearly six out of 10 businesses shut down within the first four years of operation.

To be a successful entrepreneur is not an effortless task. It takes plenty of sacrifice. A new generation of young entrepreneurs think the road is smooth and a fast track to easy wealth. Not everyone will become Mark Zuckerberg. Obstacles and sacrifice are part of the deal. Harnessing opportunity and overcoming challenges on a daily basis to top the competition is constant work. These conditions are true no matter what the sector of business engagement or company size.

Telltale signs of weak organizations can be traced to inept leadership. The following points highlight the deficiencies:

  • Poor customer service – slow or no customer inquiry replies – abysmal handling of sales and service complaints. Service is portrayed as a reward, not a right or benefit.
  • No Unique Selling/Value Proposition. Companies need to define and articulate their unique value proposition and deliver on it consistently. Create the platform for sustainable and competitive advantage.
  • Operational deficiencies – various ailments and no structure
  • Absence of or very little communication among staff and management. Divisions aren’t well-coordinated and do not function as a team.
  • No transparency. There is hardly any openness from management.
  • Unethical practices – short-term selfish objectives in search of market share. Top executives should promote social norms and principles as moral agents.
  • Lack of proper execution of decisions and with new products/services.
  • Productivity incentives should be implemented to boost results and employee morale. People must be given a reason to work hard and be efficient.
  • Creativity is practically non-existent. An absence of innovation and employee empowerment will hurt progress and stifle new ideas.
  • No clear vision/strategy – there needs to be a strategic vision that reflects a truly unmet need and has the commitment of a dedicated CEO. That means that there is a well-defined target audience with a distinct value position that is differentiated, meaningful, and deliverable.
  • A weak sales force along with an unattractive compensation plan.
  • Favoring nepotism and bias – promoting family members over other qualified employees often leads to resentment or, worse, prompts valuable non-family employees to leave the company.
  • Poor hiring practices – should hire for attitude and train for skills.
  • Slow/delayed decision-making process – too many layers – overwhelming bureaucratic structure.
  • High turnover, which leads to poor employee morale, reduced intellectual capital, lower service levels, higher operational costs and decreased productivity.
  • Management in a state of denial about their organization’s shortcomings – remaining with the dysfunctional status quo
  • No channel strategy. Some companies focus on building a product, but don’t think through how to get it into the hands of customers. Even if your product is great, unless you can sell directly, you may be dead in the water without strong channel partners.
  • The hidden game – corporate politics – power plays by a handful of individuals for their own benefit to the detriment of their colleagues and the company.
  • Misrepresentation of brand(s) – too much hype – empty promises – not delivering on expectations – leads to dissatisfied clients who will alienate the brand.
  • Weak financial controls – cash flow dilemmas – over leveraged/undercapitalized (high debt-to-capital ratio) – not reinvesting a certain percentage of profits for future growth.
  • Absence of sound marketing program(s) and/or brand strategy. A brand is defined by how it behaves, from the products it builds to how it treats its customers, to the suppliers with whom it works.
  • Growing too fast and not staying on course as the company grows.
  • Lack or very little employee training & development.
  • Deficient in control systems – reactive rather than pro-active.
  • Lack of continuous improvements or complacent.

In the final analysis

In large corporations, the Boards should be held more accountable by paying closer attention to the behavior and actions in the C-suite ‒ thus reacting before things go awry.

The top executive’s job is to operate a business that adds value by means of the goods and services it provides to customers.

The way to solve an organizational problem is to confront the structural issues with a moral sense of purpose and ethics. Higher morale generates higher profits – though occasionally other priorities undermine that objective, for example, self-serving behavior by certain executives or chasing short-term selfish objectives in search of rapid market share, profits and self-interests before people. Monsanto’s executive conduct would make for a marvelous case study in this regard.

According to marketing maven Seth Godin, “It’s the flameouts and the scams that get all the publicity, but it’s the long-term commitment that pays off.”

Wish list of best practices should include but not limited to:

  • avoid potential scandals;
  • apply checks in balances in place;
  • inspect what is expected;
  • trust but verify;
  • retain corporate structure layers to a minimum, and
  • keep communication channels open.

In the end, what you manage and how you manage it is what you get — methodical, sustained growth with patience and lack of greed.

Add to FacebookAdd to DiggAdd to Del.icio.usAdd to StumbleuponAdd to RedditAdd to BlinklistAdd to TwitterAdd to TechnoratiAdd to Yahoo BuzzAdd to Newsvine

_____________________________________________________

Leave a comment

Filed under 1, Business, business management, Business success, business vitality, customer engagement, customer experience, decision making management, dysfunctional companies, entrepreneurship, entrepreneurship success, executive decision making, management, marketing strategy

The Hiring Conundrum: How to Correctly Employ Talent

By James D. Roumeliotis

Job Candidates

Add to FacebookAdd to DiggAdd to Del.icio.usAdd to StumbleuponAdd to RedditAdd to BlinklistAdd to TwitterAdd to TechnoratiAdd to Yahoo BuzzAdd to Newsvine

How often do we hear employers, of all sizes, complaining that there is a dire shortage of good talent out there? What should we really make of this? Is there anyone to blame – everyone but the employers themselves? Consider the daily hiring procedures and habits of most employers to realize who is at fault for the hiring dilemma. Engaging prospective employees by utilizing mainly the human resources staff and/or relying solely on a plethora of job boards, automated hiring/”big data” or software to scan and screen-out resumes is not only irresponsible but rather a wasteful practice, totally impersonal, as well as a thoughtless and a lazy way to bring, supposed, qualified people on board.

Through third parties and automated systems, how is a hiring manager going to discover candidates who bring more than just skills to the table – ones who also bring about an ideal attitude and character? Think soft skills/emotional IQ. The job of hiring should be conducted by none other than the person to whom the potential new employee will be reporting to – or rather be assigned with tasks.

If there is a list of ideal and practical methods of properly hiring employees, which I fully subscribe to, then you ought to read the article “How To Hire: 8 stunning tips“ in Nick Corcodilos’s blog “Ask The Headhunter®.”

Here is the link: http://www.asktheheadhunter.com/10693/how-to-hire

Eavesdropper next table

Keep Your Recruiting Radar Constantly Active

Recruiting done properly and effectively is not an occasional task but an on-going process. Potential candidates can be discovered anywhere. Even if the hiring manager is not actively seeking a candidate, he or she should be doing so proactively by keeping his or her ears and eyes open at all time and literally anywhere – whether during networking, social activities, or during his or her time off. I am aware of two such cases; whereby a business owner and a recruiter, respectively, both came across their potential candidate while dining at a restaurant. In either case, they were impressed when they overheard an individual, at the table beside them, talking about his/her career goals and aspirations. The pleasant personality and discussion drew them in impressive ways that the hiring managers could not help but engage with this person. In the end, the eavesdroppers extended the individual an invitation for a job interview. Eventually, they were hired by their respective employers.

Add to FacebookAdd to DiggAdd to Del.icio.usAdd to StumbleuponAdd to RedditAdd to BlinklistAdd to TwitterAdd to TechnoratiAdd to Yahoo BuzzAdd to Newsvine

___________________________________

Request your TWO FREE chapters of this popular book with no obligation.

Leave a comment

Filed under Business, business management, hiring, hiring managers, management, recruiting

Business Vitality: Preventing Adversities Before They Occur

by James D. Roumeliotis

Businessman with telescope

Add to FacebookAdd to DiggAdd to Del.icio.usAdd to StumbleuponAdd to RedditAdd to BlinklistAdd to TwitterAdd to TechnoratiAdd to Yahoo BuzzAdd to Newsvine

“Panic” and “chaos” are not what one should undergo in business. Unfortunately, many entrepreneurs are caught off guard more often than necessary when operating their business. In his book “The E-Myth Revisited”, dynamic author Michael Gerber states that a business person ought to work “on” his/her business, rather than “in” his/her business.

Start-ups have a leg-up if they launch and persevere on the “right track.” The appropriate definition of these two words together imply following a proper course of action. The analogy which can be applied to a business well-being is our own personal state of formidable health comprising of a healthy diet, frequent exercise and undergoing an annual physical. The objective is to be proactive, rather than reactive.

Remaining diligent and active as opposed to reactive

Entrepreneurs may be quite well versed with the products and/or services offered, but not necessarily with running their business including a bucket list of daily administrative tasks. Most notably, sales, marketing and finance/accounting undertakings. This is where honest consideration should be given in either bringing in a partner to complement the entrepreneur’s weaknesses or an external adviser and/or mentor to guide him/her. A sounding board should not be dismissed as prohibitive, thus solely for larger organizations. Seeking professional help is an important way to avoid or plan for business challenges.

Moreover, when drafting a business plan as the road-map, include a SWOT (Strengths, Weaknesses, Opportunities & Threats) matrix and “what if” scenarios — which will reveal and prepare one in avoiding the pitfalls of running a business, as well as coping with various challenges which can arise. In addition, consider plotting a business model as a prelude to the business plan. It makes you think through your business plan, which in turn communicates the business model. Both should synchronize. Make certain a short term (less than 12 months), medium term (13-30 month), as well as a long-term plan (30-60 month) have been conceived.

Savvy business people – whether new or seasoned entrepreneurs or CEOs of large corporations possess:

  • Insight and foresight;
  • Strategies and execution competence;
  • Alternative plans with an exit strategy in case situations turn awry;
  • The perception to take “calculated” risks rather than dive into the abyss;
  • Openness to third party advice;
  • Focus and consistency to achieve their goals and objectives;
  • The ability to see opportunity before their competition does and act upon it in a timely manner.

Negligence with current enterprises

Growing pains in any organization require a formidable administration to keep the business operating efficiently which includes customer front & center, profitability and more than adequate cash flow. Telltale signs of weak organizations can be traced to inept leadership. The following points highlight the deficiencies:

  • Poor customer service – slow or no customer inquiry replies – abysmal handling of sales and service complaints. Service is portrayed as a reward, not a right or benefit.
  • No Unique Selling/Value Proposition. Companies need to define and articulate their unique value proposition and deliver on it consistently. Create the platform for sustainable and competitive advantage.
  • Operational deficiencies – various ailments and no structure
  • Absence of or very little communication amongst staff and management. Divisions aren’t well-coordinated and do not function as a team.
  • No transparency. There is hardly any openness from management.
  • Unethical practices – short-term selfish objectives in search of market share. Top executives should promote social norms and principles as moral agents.
  • Lack of proper execution of decisions and with new products/services.
  • Productivity incentives should be implemented to boost results and employee morale. People must be given a reason to work hard and be efficient.
  • Creativity is practically non-existent. An absence of innovation and employee empowerment will hurt progress and stifle new ideas.
  • No clear vision/strategy – there needs to be a strategic vision that reflects a truly unmet need and has the commitment of a dedicated CEO. That means that there is a well-defined target audience with a distinct value position that is differentiated, meaningful, and deliverable.
  • A weak sales force along with an unattractive compensation plan.
  • Favoring nepotism and bias – promoting family members over other qualified employees often leads to resentment or, worse, prompts valuable non-family employees to leave the company.
  • Poor hiring practices – should hire for attitude and train for skills.
  • Slow/delayed decision-making process – too many layers – overwhelming bureaucratic structure.
  • High turnover, which leads to poor employee morale, reduced intellectual capital, lower service levels, higher operational costs and decreased productivity.
  • Management in a state of denial about their organization’s shortcomings – remaining with the dysfunctional status quo.
  • No channel strategy. Some companies focus on building a product, but don’t think through how to get it into the hands of customers. Even if your product is great, unless you can sell directly, you may be dead in the water without strong channel partners.
  • The hidden game – corporate politics – power plays by a handful of individuals for their own benefit to the detriment of their colleagues and the company.
  • Misrepresentation of brand(s) – too much hype – empty promises – not delivering on expectations – leads to dissatisfied clients who will alienate the brand.
  • Weak financial controls – cash flow dilemmas – over leveraged/under-capitalized (high debt-to-capital ratio) – not reinvesting a certain percentage of profits for future growth.
  • Absence of sound marketing program(s) and/or brand strategy. A brand is defined by how it behaves, from the products it builds to how it treats its customers, to the suppliers with whom it works.
  • Growing too fast and not staying on course as the company grows.
  • Lack or very little employee training & development.
  • Deficient in control systems – reactive rather than pro-active.
  • Lack of continuous improvements or complacent.

The way to solve an organizational problem is to swiftly confront the structural issues with a moral sense of purpose and ethics. It must also have preventive systems in place in anticipation of issues which may arise.

For its clients to receive stellar service, the enterprise must have its house in order. Besides structure and an efficient operation, employees should be trained and empowered to do their jobs efficiently.

Companies that disrespect their employees and shut-out clients get willfully isolated and have a short life span through an erosion of market share and significant loss of revenue. Thus, a company’s goal should place emphasis on serving its people properly and fairly. Higher morale generates higher profits – though occasionally other priorities hinder that objective, for example, self-serving behavior by certain executives.

Superman Businessman

Operational prevention: Implementation of systems and risk management

To preventing operational problems before they even occur requires anticipating them through operational intelligence. The purpose of risk management is to identify potential problems before they occur. To do so entails early and in-depth risk analysis through the collaboration and involvement of all parties involved in running the business. It’s where brainstorming occurs about potential problems regarding the product(s), service(s), market(s) etc. to search for and foresee issues, as well as create solutions in advance – eluding the element of surprise at some point in time. Risk management is comprised of: 1) Identifying, outlining and analyzing potential risks; 2) A course of action in handling the identified risks, as well as the implementation of risk control/elimination plans when/where necessary.

Business leadership should contemplate allowing constant flexibility to adjust strategy when necessary if the initial one isn’t effective.

There should be continuous checks and balances – especially with regards to internal financial controls through various procedures implemented to reduce errors or possible embezzlement by staff. Trust but verify ought to be the organization’s mantra and actual implementation.

Perhaps you can consider a risk analysis software such as a SAS platform whose practical use offers best practices to help the company establish a risk-aware culture through various enterprise risk models and forecasting. We note examples of aircraft pilots who diligently prepare prior to a flight – or ship captains making their plans prior to voyages at sea.

When all is said and done – avoiding pitfalls

Companies with inept leadership usually fail in the first or second year, but even established companies can stumble badly when they outgrow the capabilities of the founding team. According to statistics, as the latest available numbers from the two U.S. government statistical agencies responsible for providing data about new businesses illustrate, The Census Bureau and the Bureau of Labor Statistics, five years after new establishments were founded (1995, 2000 and 2005 respectively), 50%, 49 and 47 percent of them (correspondingly) were still in operation.

To be a successful and sustaining entrepreneur requires vision, strategy, execution and constant diligence – along with plenty of sacrifice. A new generation of young entrepreneurs think the road is smooth and a fast track to easy wealth. Obstacles and sacrifice are part of the deal. Harnessing opportunity and overcoming challenges on a daily basis to top the competition is constant work. These conditions are true no matter what the sector of business engagement or company size.

Enterprises spanning a wide array of industries, have earned distinction as “well-” or “best-” managed” by demonstrating business excellence through a meticulous and independent process that evaluates their management abilities and practices – by focusing on innovation, continuous training, brainstorming and caring for their employees’ well-being – as well as investing in meeting the needs of their clients.

Well-run companies thrive no matter what and learn from their mistakes – making certain they don’t repeat them. However, never give failures a second thought. There are no dress rehearsals in business either.

Onwards and upwards!

Add to FacebookAdd to DiggAdd to Del.icio.usAdd to StumbleuponAdd to RedditAdd to BlinklistAdd to TwitterAdd to TechnoratiAdd to Yahoo BuzzAdd to Newsvine

 ______________________________________________________

Request your TWO FREE chapters of this popular book with no obligation.

EntrepreneurialEssentials - FrontCover Final

Inquire about our 30 minute free consultation

Google

Leave a comment

Filed under advisery board, advisory board, business management, Business success, business vitality, leadership, preventing business problems

The Short-sighted and Passive Business Leader: Reform or Descend

By James D. Roumeliotis

Add to FacebookAdd to DiggAdd to Del.icio.usAdd to StumbleuponAdd to RedditAdd to BlinklistAdd to TwitterAdd to TechnoratiAdd to Yahoo BuzzAdd to Newsvine

Blindfolded Executive 

How often do we hear of CEOs who have been discharged for lack of performance? Contrast this with those whose Boards have kept them on the job despite controversy and/or inept leadership. The latter decision seems troubling. Consider Steve Ballmer of Microsoft and Mike Duke of Walmart amongst others.

It is my belief that the key issue here is organizational structure. Far too often, successful groups grow and get out of control. No organization should be too large. When it grows in size, inevitably it becomes overburdened and self-protecting. Incompetence is a guaranteed result.

The prime decision maker of the organization exercises a variety of leadership styles. Leadership is linked to personality. ‒ there is the empty, well compensated, well-tailored, neat and polite dapper boss; the absolutely lost and ineffective one; the barking, intimidating, eager for respect boss;  then you have the hypocritical and/or bipolar type ‒ one day treats you well, whereas, the next day treats you with utter disrespect. For the most part, there is the worship me and exceedingly charismatic kind in vast numbers who mostly got there because of that particular trait along with shrewd politicking each step on the way up.
What most, as described above, do have in common is incompetence. Despite all the act and ego stroking, in the end, they do what it takes to remain in their dynamic position.

Short term results at the expense of long term consequences

Shareholders and the Boards focus on quarterly earnings growth results. As a result, we often witness severely dysfunctional decision making with public corporate leadership. This includes irresponsible behavior, as well as lack of depth and vision. HP’s Board is a case in point. It has been notoriously dysfunctional in the ways it has governed itself which resulted in a spate of upheavals over the last few years.

There is tremendous pressure to perform in a short period of time. There are no silver bullets for quick results. Seeds need to be planted for the future and for the good of the organization.  Panacea creates decision making blunders which abound. At times it’s error in judgment and neglect. Every business sector is riddled with poor senior management. Here is a sample of some companies whose inept and/or negligent decision making have made headlines in unflattering ways.

–       KODAK: In 1975, engineers at the company introduced the first digital camera to its executives. Rather than embracing it, fearing it would cannibalize its lucrative film sector, the top brass asked that the digital camera be kept under wraps indefinitely.

–       WALMART: The company leadership has a long record of unethical behavior, from brutally exploiting workers to discriminating against women to bribing Mexican officials.

–       MICROSOFT: Its CEO has remained long enough in his position to wipe out shareholder value by falling asleep at the wheel rather than vigorously pursuing web and mobile based businesses which companies such as Google and Apple, amongst others, have remained ahead of the game.

–       JOHNSON & JOHNSON: Its former CEO who was employed at the company for 40 years resigned amid a series of missteps over the last few years of his tenure which damaged his and his company’s once sterling reputations. This included recalls of numerous over-the-counter well established drugs, including the largest recall of children’s non-prescription drugs, as well as medical devices. In addition, it was warned by the FDA about false claims it issued about its popular mouthwash, while another U.S. Federal agency, the Securities and Exchange Commission, charged the company with bribing doctors in several countries to prescribe its drugs and medical devices.

–       ABERCROMBIE & FITCH: CEO Michael Jeffries’s snarl and insensitive remark that the brand’s apparel are solely targeted to the hip, slim, attractive and affluent “All American” teenager, offended many. As expected, it set off a storm of controversy. For someone concerned about his company’s image, the self-inflicted incident has damaged his and his company’s reputation. Even A&F’s investors are not pleased with the discriminatory statement which has negatively affected revenues and the stock price.

Organizational leadership is bestowed with the authority and accountability for creating value for customers, employees and its owners or shareholders. In spite of this, a significant weakness in running an organization is pushing for short-term profitability at the expense of solid planning. It’s my notion that the leader of many large multinational corporations, competence is not the primary value but rather the connections, politics, and clever tactics. Such “benefits” can usually compensate for incompetence.

The best-managed companies are constant achievers in their respective industries. They exude managerial excellence and financial performance is a reflection of capable management.

Typically, small businesses with inept ownership usually fail in the first year or two, but even companies in their growth stage can stumble badly when they outgrow the capabilities of the founding team. Research by the U.S. Bureau of Labor Statistics demonstrates that nearly 6 out of 10 businesses shut down within the first 4 years of operation.

Enterprises spanning a wide array of industries, have earned distinction as “well-” or “best-” managed” by demonstrating business excellence through a meticulous and independent process that evaluates their management abilities and practices – by focusing on innovation, continuous training, brainstorming and caring for their employees’ well-being – as well as investing in meeting the needs of their clients.

Businessman with telescope

Identifying the shortcomings of incompetents

Regrettably, there are not many business leaders who make the cut. This includes those who also possess credentials from Ivy League educational institutions and/or oodles of charisma. A President or CEO grooming school doesn’t presently exist. Contrary to what many may think, there are no natural born leaders. In the past two decades, the average tenure of a CEO has halved. This is adequate proof how demanding the job is.

Our experiences and conditions shape who we are as people and as leaders. Leadership, like management, is not a science but a practice. The difference between the two, according to the late management guru Peter Drucker, is “Management is doing things right; leadership is doing the right things.”

Telltale signs of poor leadership in an organization include:

  • in a state of denial about shortcomings – persisting with a dysfunctional status quo;
  • slow/delayed decision-making process;
  • lack of foresight for innovation;
  • short-term selfish driven decisions with no regard for long-term consequences;
  • no clear vision/strategy;
  • passive-aggressive;
  • unethical practices including apathy and lack of scruples;
  • irrational thinking/decision making;
  • an absence of or very little communication amongst staff and management. Chaos reigns amongst various internal departments which don’t function as a team;
  • narcissistic;
  • shielded from the lower ranking staff and the customer as he/she spends most, if not all of the time, behind the desk and perpetual committee meetings;
  • inflexible;
  • lack of transparency ‒ there is hardly any openness from management.

Anatomy of a competent boss: in search of sustainable leadership

A prime responsibility of leadership is the capability to constantly be one step ahead of their game, to envision what lies ahead, and in the process, be well prepared to lead the organization to great heights.

Effective leaders focus on long-term growth not short term decisions to increase or stabilize the company’s stock price. Furthermore, they should be open to ideas from lower level management not exclusively from their inner circle of “yes” men/women.

The following skills may appear as a list intended for a job description. However, they should be deemed a prerequisite for a leadership role regardless of the size or type of organization.

–       Bonds emotionally

–       Communicates well

–       Possesses character

–       Accountability

–       Humility, not ego

–       Foresight but with an open mind for feedback

–       Passionate

–       Can handle criticism

–       Tenacious

–       Articulate

–       Regard for people

–       Able and willing to delegate

–       Team player

–       Sales and marketing savvy

–       A disciplined and flexible individual who is not only open to change but a driver of change

Examples of highly effective business leaders who possess many of the above characteristics include Sir Richard Branson (Virgin Group), Megg Whitman (HP), Howard Schultz (Starbucks), Jeff Bezos (Amazon), Brad Smith (Intuit), Indra Nooyi (Pepsi), and Carlos Ghosn (Nissan), amongst others.

Public vs Private leadership ‒ and the authentic luxury enterprise

There is no doubt that the pressures and priorities of heading a private company differ as opposed to a publicly traded company. Different industry sectors may also require certain competencies.

Kellie McSorley, founder of SILK Search, the London-based boutique headhunting firm specialising in senior executive appointments in the luxury industry, explains the differences with the type of top executives sought in various sectors this way:

“For example, our Private Equity clients look for certain qualities in a person generally around urgency and result orientation whereas a Public company may place more value on other characteristics and competencies such as process, procedure and thought leadership. With Private companies there is a level of sensitivity and emotional attachment to the brand that any new hire absolutely has to understand, respect and harness, in order to succeed.”

Authentic luxury brands, on the other hand, operate by their own distinct rules as they do what it takes to retain their aura of exclusivity and cachet by focusing on production limits, premium quality and catering to UHNW patrons ‒ the antithesis of mainstream brands and products. For instance, Hermès has no need to deal with pressures of shareholders and stock analysts that are prevalent with corporate brands such as the LVMH luxury group. Instead, Hermès’ family stakeholders choose to keep the current business ethos along with their complete independence.

As for what the luxury sector desires in its future CEO, Ms. McSorley states this succinctly as follows:

“Historically C-Suite recruitment in Luxury was much more based on who you are, but now it is definitely about what you have done. Brands are looking for people with results, across industries, people that have proven themselves as key collaborators, innovators, people that can manage change.”

She further adds:

“We are noticing luxury brands really looking into other industries for both talent and inspiration. When you talk about digital, brands are looking to Google or pure play companies. In retail they are looking to hospitality for knowledge of customer service. Luxury fashion brands are also speaking about Apple when it comes to best in class service and customer engagement.”

Woman - Business Leader

In the final analysis

In large corporations, the Boards should be held more accountable by paying closer attention to the behavior and actions in the C-suite ‒ thus reacting before things go awry.

The top executive’s job is to operate a business that adds value by means of the goods and services it provides to customers.

The way to solve an organizational problem is to confront the structural issues with a moral sense of purpose and ethics. Higher morale generates higher profits – though occasionally other priorities undermine that objective, for example, self-serving behavior by certain executives or chasing short-term selfish objectives in search of rapid market share, profits and self-interests before people. Monsanto’s executive conduct would make for a marvelous case study in this regard.

According to marketing maven Seth Godin, “It’s the flameouts and the scams that get all the publicity, but it’s the long-term commitment that pays off.”

In the end, what you manage and how you manage it is what you get.

Add to FacebookAdd to DiggAdd to Del.icio.usAdd to StumbleuponAdd to RedditAdd to BlinklistAdd to TwitterAdd to TechnoratiAdd to Yahoo BuzzAdd to Newsvine

______________________________________

Request your TWO FREE chapters of this popular book with no obligation.

EntrepreneurialEssentials - FrontCover Final

Learn how to start or expand a business for free at
How to start a business

Google

1 Comment

Filed under Business, entrepreneur, entrepreneurship, entrepreneurship success, leadership, management, starting a business success

The Anathema of Bureaucracy: Dealing with its Fate & Embracing its Inverse

by James D. Roumeliotis

Add to FacebookAdd to DiggAdd to Del.icio.usAdd to StumbleuponAdd to RedditAdd to BlinklistAdd to TwitterAdd to TechnoratiAdd to Yahoo BuzzAdd to Newsvine

According to Wikipedia, the word “bureaucracy” is clearly defined as “The collective organizational structure, procedures, protocols and set of regulations in place to manage activity, usually in large organizations and government.” In other words, it’s a frustrating, rigid, process driven, and a snail paced institution. This shouldn’t exist in democratic countries and ought to be controlled by developing nations if they are to effortlessly succeed. Not doing so, bureaucracy will become increasingly self-serving, complacent and breed corruption, rather than properly serve society as its intention.

In the private sector, if people don’t work productively, their businesses will go bankrupt. But, in the public sector, seniority trumps performance regardless of employee efficiency or lack thereof. Competence in an organization is directly linked with its organizational system. In bureaucracy the hierarchy is typically very complex with many levels providing a highly differentiated structure of authority.

The faceless bureaucracy also exists in the private sector. Employees there get frustrated when they can’t perform their work in a wholesome way because of restrictive yet superfluous rules set by their organization. Add to that corporate politics and it’s not hard to see why there are high levels of employee exodus/turnover due to their malcontent. There are organizations which thrive on their ability to allow individuals to remain faceless. It permits them to act badly which is not in the best interest of their customers.

Add to FacebookAdd to DiggAdd to Del.icio.usAdd to StumbleuponAdd to RedditAdd to BlinklistAdd to TwitterAdd to TechnoratiAdd to Yahoo BuzzAdd to Newsvine

YOU CAN READ THE REMAINDER OF THIS SUBJECT MATTER IN THE BOOK “ENTREPRENEURIAL ESSENTIALS: UNCONVENTIONAL BUSINESS WISDOM AND BOLD TACTICS

For a no obligation FREE preview (2 chapters), kindly click here.

Leave a comment

Filed under 1, Business