Management Matters Blog

How to K.I.S.S Problems Goodbye

By Mike Myatt, Chief Strategy Officer, N2growth

--Keep It Simple Stupid. One of the most effective ways to order your world is to simplify everything you encounter. The problem is that keeping it simple often becomes very difficult when our basic human nature is to overcomplicate everything we touch. In thinking about the people I respect the most, to the one they possess the uncanny ability to take the most complicated of issues and simplify them. You will find that the best leaders, communicators, teachers, and innovators have a true knack for taking extremely dense or intricate content and making it engaging and easy to understand. In fact I believe it was Leonardo Da Vinci who said "simplicity is the ultimate form of sophistication." In today's column I'll take a look at the often overlooked benefits of keeping it simple.

While simplicity may have become a lost art, understanding the importance of simplicity is nonetheless critical to your success in business. Consider all the presentations/meetings you’ve attended in the last few weeks; was it the people who able to articulate their positions in a simple and straight forward fashion, or the individuals that made things complex and tedious that got traction with their ideas? It has been my experience that the more complicated, difficult, or convoluted an explanation is, that one or both of the following issues are in play:

1) the person speaking is a horrible communicator, or;

2) the person speaking really doesn’t possess a true command of their subject matter. It is one thing to toss around the latest buzz-words or to have the most complex flow chart, but it is quite another thing to actually possess such a deep and thorough understanding of your topic that you can make even the most complex issues easy to understand.

It is almost as if business people have come to believe that complexity is synonymous with sophistication and savvy. It has been my experience that the only things complexity are synonymous with are increased costs and failed implementations. There is an old saying in the software development world that states “usability drives adoptability” which tends to lend support to my observations. Those of you that know me have come to understand that I prefer to cut to the chase and get to the root of an issue as quickly as possible…this requires the ability to simplify not complicate matters.

The truth is that simplifying something doesn’t make it a trite or incomplete endeavor. Rather simplification makes for a more productive and efficient effort that is often more savvy than other more complex alternatives. As an example I’ll use the area of design to prove my point. I can think of no better representation of simplicity at work than the iPod. Apple took something complex, sophisticated, and feature rich and crushed the competition by making it simple. The simplicity of the iPod is exactly what makes for a great user experience. Absolutely nothing is lost in the iPod’s simplicity, and it is in fact the simplicity itself which makes it so classically elegant.   

Another benefit of simplicity is that it serves as a key driver of focus, which enables greater efficiency, productivity, and better overall achievement. Keeping things simple allows you to focus on one thing at a time without the distractions that complexity breeds. I would suggest that you break down every key area of your business (operations, administration, marketing, branding, sales, finance, IT, etc.) and attempt to simplify your processes, initiatives, and offerings. As a C-level executive you must focus on simplifying your day in order to maximize your efficiency. By simplifying everything from the information and reports you view, to your communications protocol, to your agenda, to your decisioning structure, you will be better able to operate In today’s unnecessarily complex world. 

Does Appearance Matter?

By Mike Myatt, Chief Strategy Officer, N2growth

--So, do appearances really matter? They shouldn't, but the reality is that they most certainly do. As the old saying goes, "you only get one chance to make a first impression," and often times it is that initial perception that determines whether or not you are even afforded the opportunity to get up to bat. In this week's column I'll examine how managing appearances can have a substantial impact on your personal brand and your success.

In a perfect world professionals would only be judged solely on their character, skill sets, competencies and performance, but alas, we do not live in a perfect world. While appearances shouldn’t matter, the reality is that the car you drive, where you office, the clothes you wear, whether you’re in good physical shape, the vocabulary that flows from your lips, the company you work for, the publicity and PR you put out, whom you choose to associate with, and any number of other appearance specific issues can add to or detract from the strength of your personal brand.

I want to be clear that I’m not advocating for form over substance, extreme self-indulgence, narcissism, or masking insecurity by the trappings you surround yourself with, but I am a proponent of paying attention to detail and facing reality. Even the most discerning people make value judgments at the subconscious level as it is only human nature to use the power of observation in an attempt to validate perception. We want those with whom we work to not only be competent, but there is also an innate desire to have them look the part as well.

Let me be transparent and use my personal situation as an example. I’m a professional advisor that works with a very high-end clientele. My job is to take very successful professionals and make them even more successful. While I would like to believe that I would be judged solely on the merits of my qualifications, the reality is that I know I’m judged on EVERYTHING my clients see and hear that relates to their perception of my ability.

For instance, if I drove-up to your office in a beat-up Honda, wearing old tattered clothes, a generally disheveled appearance, and a very laid-back attitude would that first impression color your opinion of my ability? Sure it would. Likewise, if I drove up in a new Bentley, wearing a $3,000 custom tailored suit, sporting a fresh manicure and a GQ hair-cut, along with an attitude of arrogance would that also color your opinion of my ability? If not, it should. The overly slick professional always makes me want to grab my wallet and run. I actually prefer to play to the middle in that I am neither understated nor overstated but I am comfortable with who I am and my approach to the market. 

The advice I give to my clients is to be true to yourself, authentic in your approach to appearance, while striving to put your best foot forward in making a positive first impression. As an example, I don’t really care what someone pays for their clothing or automobile, or even how expensive their office accoutrements are, but I do notice whether or not they are well maintained and appropriate for the given situation. The bottom line is that your appearance should be one that both you and your clients/customers/stakeholders are comfortable with. You should manage appearances on creating a feeling of comfort and engendering confidence not on trying to impress.

While much is often said about first impressions, this phrase in and of itself implies subsequent impressions are made as well. Professionals must be just as diligent in their management of future appearances and impressions. I am a huge proponent of being consistent and having a high degree of continuity of impressions/appearances. If you happen to be someone who makes a great first impression, but cannot execute and/or measure-up to expectations, you are just setting yourself up for failure and your clients will be even more frustrated than if they had never engaged you to begin with. A negative experience is worse for your personal and corporate brand than no experience at all. 

At the end of the day it is not about how much you spend or spin, but the authenticity, integrity, appropriateness of how you manage your appearance that matters. Disingenuous and insincere positioning may get your foot in the door, but when the door slams into your backside as your engagement or relationship blows-up don’t say I didn’t tell you so.

 

Recognizing the Need for Change

By Mike Myatt, Chief Strategy Officer, N2growth

--Since the title of today's column is "Recognizing the Need for Change," I'm going to switch things up a bit and ask you to answer a question posed by me. I first warned readers of the slowing economy more than a year ago, so my question is this: "In the last year what proactive changes have you made to ayour business to improve your ability to navigate the changing economic conditions that are presently vexing many a CEO?" In the text that follows I'll give you a few places you might want to look at if you haven’t already…

Savvy CEOs have likely already made many of the adjustments mentioned below, but it’s not too late to jump on the bandwagon if you’ve been slow on the trigger:

1. Cost Centers vs. Profit Centers: Slowing economic conditions require a greater emphasis on growth in revenue and profitability. Reallocate financial and non-financial resources to marketing and sales activities to prime the funnel. Look to reduce commitments to business units, departments, and headcount that don’t significantly impact contribution margin.

2. Go Shopping: Tough times create opportunities to acquire companies and/or other assets at discounts over normal pricing. The best deals are not made when multiples and trailing 12’s are at all-time highs, but rather when true value is unlocked as a result of recognizing market opportunity created by adversity.

3. The Talent Advantage: Weed out the lower echelons (the bottom 10 percent-20 percent) of your work force and seek to replace them with higher caliber talent looking for a better opportunity during tough times. This is an employer’s market with a dearth of talent available. The big plus is that said talent can now be acquired without having to pay the signing bonuses of old.

4. Get Help: Surround yourself with the best and the brightest. If you’re a younger CEO and this is your first economic downturn, get help…Find a coach or mentor who can help guide you through. As the old saying goes: “You don’t know what you don’t know.” Even if you possess a bit of grey-hair and have successfully operated through a variety of business cycles, don’t let your bravado get the better of you. There is no such thing as a person who cannot benefit from sound counsel.

5. Add to the War Chest: While the capital and credit markets have eased-off the frothy pace of the last few years, there is still an abundant supply of smart-money looking for a home. Underwriting and due diligence may be a bit more painful these days, but don’t let that stand in your way. Work every level of the capital structure and create as much operating leverage as possible at the lowest blended cost of capital.

6. Don’t Forget the Customer: This is a time to not only remain close to your key accounts, but to also aggressively go after your competitions key accounts. Remember that if you’re not talking to your customers someone else will be. At no time is customer centricity more important than in a waning economy.

7. Don’t Miss the Boat: Change, disrupt, innovate, disintermediate, and generally unleash havoc in the marketplace. More wealth is gained, and more dominant brands are established in declining markets than in advancing markets. Smart CEOs aren’t looking for safe harbors, rather they understand that slowing economic conditions create a significant window of market opportunities.

8. It’s Not About the Risk: Don’t manage risk, exploit opportunities. Forget incremental gains and process engineering as these types of initiatives won’t carry you through tough times. Cost cutting is not a business model and it alone (especially the wrong kind) won’t save you. Invest your precious resources now where you can create significant leverage, velocity, or economies of scale. Don’t trip over dollars to pick-up pennies.

As the old saying goes, “it’s better late than never.” Only the most arrogant or the most foolhardy CEOs don’t recognize the need for rapid change in reacting to today’s slowing economic conditions.

How to Reduce Employee Turnover

By Mike Myatt, Chief Strategy Officer, N2growth

--Few things in business are as costly and disruptive as unknowingly having the proverbial revolving door for employees to exit from. While there are many secondary and tertiary items that can influence an employee's decision to leave, in this week's column I'll address the one single factor which constitutes the overarching reason that drives a person's decision to leave their employer.

Let me begin by stating that no company in the world has a 100 percent retention factor if measured over any meaningful length of time. It is also particularly true that today’s global business climate creates a “grass is greener” mindset for many individuals given the plethora of opportunities in the marketplace at any given point in time. The two aforementioned disclaimers aside, there are definitely companies that have created excellent work environments leading to superior employee satisfaction and retention. Organizations that display the healthy, dynamic, and positive culture that fosters a motivated and engaged workforce all have one thing in common...great leadership.

There is an old saying that goes; “Employees don’t quit working for companies, they quit working for their bosses.” Regardless of tenure, position, title, etc., employees who voluntarily leave generally do so out of some type of perceived disconnect with leadership. Furthermore, while the accuracy of exit interviews are somewhat debatable, they nonetheless support the conclusion drawn in the previous sentence. The following list contains just five representative samples of the differences between solid company leadership and poor leadership as it relates to employee turnover…

• Hiring Methodology: Great leadership teams use a values based hiring methodology. They hire slowly, carefully, and only to fill a defined need with a specific skill set. Companies with challenged leadership hire quickly, often based solely on how affordably they can fill a position, and many times in absence of a defined need.

• Leadership Continuity: Great companies have a clear vision, mission, and strategy, which are evangelized by a cohesive leadership team. A crisply articulated vision, and continuity of leadership creates an engaged workforce that understands the business model and key objectives of the enterprise. Companies that have a fractured leadership team lose the confidence of line and staff. Employees that don’t understand what they’re playing for are very difficult to motivate and as a result are often disengaged and non-productive.

• A Planned Transition: Outstanding leadership teams set employees up for success and not for failure. They have an established onboarding process which puts forth an initial roadmap for a successful transition by clearly defining key performance indicators, business objectives, and other key metrics. Well honed leadership teams immediately assign an in house mentor to new hires to help insure a successful acclimation. Unsophisticated leadership teams usually have a sink or swim mentality with regard to new hires and have substantial voids in training and management processes in the early days of a new hire. Poor leadership teams have a lack of continuity in their training and development which breeds discontentment and dissatisfaction.

• Compensation: Great leadership teams understand the value of tier-one talent, and are not afraid to pay-up in order to attract it and retain it. They create a multi-tiered compensation plan that rewards employees at the top of industry scale when performance objectives are met or exceeded. Moreover they understand the value of non-compensatory recognition and apply it generously and judiciously. Companies with poor leadership often trip over dollars to pick-up pennies when it comes to compensation. Their compensation plans lack sophistication, creativity, and are engineered by default and not be design. People will often cite non-competitive compensation as an issue for leaving a company, but what they are really stating is that the company has an unsophisticated leadership team which is out of touch with both the market, and the needs of its employees.

• Professional Development: Solid leadership teams challenge their employees by offering them a clear path toward personal and professional growth. Great companies create a career path that offers the successful employee the option of matriculating throughout the company based upon achievements, needs, and qualifications. Great leadership teams understand that in order to create a thriving and sustainable enterprise that a key priority is to develop talent to their greatest potential, and ultimately to create other leaders. Poor leadership teams don’t see the value in training, mentoring, coaching, and other forms of professional development. Their workforces are stagnant and not competitive, which places them a not only a competitive disadvantage, but also at risk for long-term sustainability.

While today’s column was a bit of an extemporaneous highlight covering only a few critical issues,  I hope it clearly portrayed the value of leadership in employee retention and development.