The retailer will close down for good after suffering from at least six years of losses amid declining revenues. The company first made a loss after tax of $26.5 million in 2014. It recorded further losses till 2018 of $54.4 million that year. Read more here.
.A quick guide on negotiation, the Harvard style:
1. Separate the person from the issue (the other side is your partner, not enemy)
2. Negotiate not position-focused, but interest-oriented
3. Develop criteria that a solution must fulfill
4. You should have different options to choose from.
No, physical office is still needed. However, companies must have procedures and technology to enable employees to work virtually as and when needed. The new normal.
"A lot of leaders underestimate the challenges of running a virtual workplace. We are social animals that need human interaction" Simon Sinek
A good reminder on management vs leadership, especially at times of crisis.
In management, there are only 3 things you can control: quality, time and money When you choose one, the other two will suffer. You cannot manage people.
If you take a chain, pile it up and then push it, what direction will it go? Nowhere you can predict and not very far. If you take it by the end and pull it, which way will it go? It will follow you.
Leadership is not about what sets you apart from those you lead—it’s about what binds you together. It is not about controlling others—it’s about trusting others. It’s not about your achievements—it’s about unleashing your team’s greatness.
In short, leadership really isn’t about you. It’s about your people.
To attract top talent in today’s market, companies need to upgrade their recruiting skills, and their culture. Here are 4 key insights:
1. Companies can’t just adopt 21st-century job titles; they need 21st-century working practices and a company culture to match.
2. Today’s top talent wants meaningful work, opportunities to develop and grow, and flexible working conditions.
3. Employers can’t wait for new talent to find them; they have to go after the best candidates.
4. To attract and retain new talent, including diverse hires, companies need to work on organization-wide culture change or create silos where new cultures and talent can flourish.
The coronavirus epidermic in China presents an opportunity for entrepreneurs to retool themselves and prepare for the growth that lies ahead when the outbreak subsides. “Reflect on what you really want, what you have and what you need to give up, or stick to,” Ma said.
Ma told students to “learn digital working methods” and “adopt internet technology.”
Alibaba launched its Taobao online shopping platform in 2003 when China was locked down during a nationwide outbreak of Sars.
Ma also channelled Kyocera Corporation’s founder Kazuo Inamori, whose management and leadership turned the television component maker into one of Japan’s largest companies.
Inamori had five strategies for companies during times of recession, according to Ma:
Strategy One: Every employees should turn to sales
Every employee should turn to sales, to arouse latent demand among clients, Ma cited Inamori in saying. "Even in a company with tip-top technology, selling a product is still the foundation of the company's operation," Inamori said. "It is impossible to get orders during recessions if employees lack the spirit in making all-out efforts for clients."
Strategy Two: Spare no effort to develop new products
A recession is a golden opportunity for companies to innovate and expand sales. "Clients are too free during a recession. They will also propose new ideas after listening to yours. This would create orders that you never imagined before, so that you can expand your business."
Strategy Three: Radical cost cuts
Recession is the only chance to cut costs, as every employee would strive to make it happen, Inamori said. "You need to lower the break-even point of the whole company by making efforts to reduce production costs," Inamori said. "If a company can maintain profitability when the turnover is halved, it would be even more profitable when sales returns to normal."
Strategy Four: Maintain high production rate Companies should maintain their usual high productivity rate even in times of recession, by reassigning excess labour from the production line to other tasks to maintain the cadence and vibe of the work cycle. "Once productivity drops, it would not be easy to restore," Inamori said.
Strategy Five: Establish favourable interpersonal relations
"The most important thing for managing a company is the relationship between the manager and employees," Inamori said, adding that employers must "love and protect" employees, while employees need to understand the manager, they need to help and support each other.
Read more here.
Thomas Cook’s rescue plan would have probably made it the “best-funded travel company in Europe,” but the UK government’s failure to offer a last-minute financial guarantee effectively brought about its collapse, according to testimony at an inquiry into the firm’s insolvency.
Read more on 5 Takeaways from UK's Thomas Cook Inquiry.
What caused the collapse of Thomas Cook? Read here.
Growth is a journey that requires the entire business to constantly adjust, optimize and execute, but it starts at the top. Only when the CEO, C-suite, and business-unit leaders have the right mind-set can leaders hope to drive growth across the business.
Growth is the number one, two and three priority.
A new survey by McKinsey highlights what separates growth leaders from the pack. Here are the seven statements that reflect the convictions of today’s growth leaders:
1. I'm all in
Always put growth first. Growth leaders put growth at the top of every agenda, from board meetings to performance reviews.
2. I'm willing to fail
Make plenty of bets. Growth leaders make more growth bets than their peers. They create a portfolio of initiatives, protecting the necessary resources and funding.
3. I know my customer as a person, not as a data point
Growth leaders are resolute, however, in putting the customer at the center of all their decisions. An executive at a global apparel brand admitted, “Whenever I’m in meetings and being presented with options to decide on, my first question is "What’s in it for the customer?"
4. I favor action over perfection
Act on “good enough” insights. Good data are crucial for good decisions, but growth leaders value speed over perfect insights. They don’t wait for perfect data. Instead, they use the data they have to make a thoughtful decision, pursue it vigorously, and then reevaluate based on results.
5. I fight for growth
Break down internal barriers. Growth is a team sport, but functional leaders often jealously guard their turf, which undermines many promising initiatives. Growth leaders actively seek out the conflicts and eliminate them. They break down silos, diffuse turf battles, and provide support for strained resources to clear the path for their teams to deliver.
6. I have a growth story I tell all the time
Infuse the business with purpose. Growth leaders know that purpose is power and that communication is about more than "the what" of growth; it’s "the why". Articulating a purpose that goes beyond brands, categories, and businesses is an effective way that growth leaders rally the whole organization.
7. I give control to others
Build up people’s growth muscles. Growth leaders invest more time in formal and informal training for growth, covering not just functional and leadership capabilities but also mind-sets.
Read more here.
It’s the best of times and the worst of times to be a business owner. For many, the promise of a liquidity event represents the culmination of their life’s work. But how do you optimize your valuation or determine the ideal timing of the event?
Here are 10 steps to optimise the value of your company:
1. Start with the end in mind
Think like a buyer would. In addition to a growth plan, a buyer will want to understand the strategic value your company adds to their portfolio, the diversity of income and customers, and the likelihood that management will stay (which may matter less to a strategic buyer than to a financial buyer).
2. Include your team in the process
Many private company owners are skittish about sharing information regarding a potential exit with their management teams. Whether it is appropriate to do so is dependent on a number of variables, including the sophistication of the team. Senior managers are going to find out eventually, and utilizing their talents to drive valuation is often a success factor. Handcuffing them through a long-term incentive plan (LTIP) is an important best practice (as opposed to providing them equity). It’s is just good business to reward the people who get you there.
3. Focus on the growth story
The single most important variable in optimizing value is being able to demonstrate consistent, predictable revenue void of too much concentration risk in a few customers. The business owner must maintain laser focus on growth in the three to five years before the sale. Any buyer will want proof that the business can “scale.”
4. Secure the right advisers early
Many business owners talk to wealth advisers, strategic planning consultants, transactional attorneys and investment bankers late in the process. Create a team of advisers who can collaborate for several years in advance and have the pieces in place when you are ready to sell to optimize your valuation. Assign a “quarterback” to drive a seamless process.
5. Formalize your exit plan
After you have met with your team and advisers, formalize your company’s strategic plan and exit plan. Your exit will need to coincide with a succession plan. Note that a majority of “earn out” consulting agreements do not pan out. While there may be tax benefits to having a consulting agreement post-transaction, make sure you understand their limitations when you’re trying to optimize your valuation.
6. Understand valuation
Every business owner thinks their business is worth more than it actually is. Get an expert business valuation done, in part to set the basis for your long-term incentive plan.
7. Minimize tax liability
Too many owners wait far too long to consider their tax liability during a transaction, and they end up giving away a sizable chunk of their gain in taxes. The right advisers may have you consider relocation for the business or the owner, or other tax-mitigating strategies such as forming an ESOP. This is why a CPA who knows M&A is so critical to optimize your valuation.
8. Ensure you have solid financial statements
A fatal flaw that will end a process before it begins is a lack of financial controls. Buyers will immediately discount any company that does not have solid financial statements and performance for at least three years.
9. Be patient
Selling in a down cycle can be costly. Waiting until you have assembled the right team, advisers and financial history can dramatically increase valuation. As private equity becomes interested at about $5 million in EBITDA, crossing this threshold is important in maximizing value
10. Develop your life plan
Owners often have a sizable portion of their financial wealth wrapped up in their businesses and make invalid assumptions about the cost of retirement.
Source: Marc Emmer. Read more by clicking at the image below:
1. Master a skill, scale it, build a community 0:25
1a. Build a platform for others that have skills 0:51
1b. Start online courses/webinars 1:54
2. Clean people's homes 3:08
3. Amazon Fulfilment business 4:07
4. Meal preparation and delivery 5:02
5. Rent bikes/mopeds 5:46
6. Fitness trainer (online or in-person) 6:33
7. Certified Public Accountant 7:27
8. Leadership skills 8:04
According to public speaking expert Neil Gordon, this is because most of us tend to stuff our talks full of information. You're taught to use acronyms, have steps and processes, fill your latest marketing deck with complicated charts ... and so you do.
Gordon says this is a mistake. "Most people think the reason why the most-viewed TED talks have been seen so many millions of times is because they're the most jaw-dropping, fascinating, ingenious, inspiring, or funniest talks," Gordon offers. "But it's not actually any of those things."
So what is it? What is the secret sauce?
"What they have," he says, "is a fully distilled idea that pervades the entire talk."
In other words, they have one big idea. Not several ideas. Not a list of seven ways to get more [blank] to do [blank].
No, they have one single, central, unifying theme. Gordon calls it a "silver bullet."
Salary guide for accounting and finance professionals in Malaysia 2018 / 2019:
Source: Kelly Services, Malaysia
In his first internal management strategy speech since being named Jack Ma's successor, Alibaba Group Holding chief executive Daniel Zhang Yong reminded managers in the company that key performance indicators (KPI) should never be the sole reason to do something.
“If we live for KPIs, and do something just for the sake of KPIs, then Alibaba is finished,”
Zhang reminded employees that the company's dream is to create value for the customers they serve.
He also exhorted employees to do their best to meet their own expectations, instead of caring what others think, and not give up when they meet resistance or obstacles – especially when it came to new business models and innovative projects that have not been tried before.
“Many of our businesses have been the same for over 10 years, and if we keep doing things the same way today, or five years later, then Alibaba won't have a future,” Zhang said, adding that his greatest fear was that Alibaba would become like a “robot on loop”.
Admiral Bill McRaven was in charge of the mission to kill Osama bin Laden. What he said was truly breathtaking.
McRaven released a short, direct statement, one that will certainly be very polarizing, but that is also a truly stunning example of leadership.
The 7-word headline: "Revoke my security clearance, too, Mr. President."
A good leader tries to embody the best qualities of his or her organization. A good leader sets the example for others to follow. A good leader always puts the welfare of others before himself or herself.
Your leadership, however, has shown little of these qualities. Through your actions, you have embarrassed us in the eyes of our children, humiliated us on the world stage and, worst of all, divided us as a nation.
This is truly one of the most stunning and sudden direct challenges to a sitting president.
But setting aside that political disagreement, McRaven's actions here are an astonishing example of trying to lead, at a potentially large personal cost. Here's why it works.
1. He's direct
McRaven's entire statement is 230 words. He gets right to the point, and there is no misunderstanding in his message. Effective communication is an important part of leadership.
2. He has credibility
McRaven is no longer in uniform, but his reputation is the main reason his message might resonate far and wide.
3. He sacrifices
McRaven doesn't offer bromides or call for people to rise up. Instead, the only thing he asks Trump specifically to do is to all him to make the same sacrifice that McRaven says other people are making. That's a powerful message.
4. He surprises
Like most members of the military, Admiral McRaven was careful not to reveal his political beliefs while he was in uniform. In fact, it is surprising to see him coming out and making such an overt, public statement against the president like this.
5. He offers a way out--and a challenge
By the time you get to the last sentence of McRaven's message, there's already a lot of energy spent, but his last line is amazing: "The criticism will continue until you become the leader we prayed you would be."
This is tough language, but it's interesting for what it's not. McRaven isn't demanding that Trump apologize, or reverse his decision, or resign. Instead, he's challenging the president and offering him a way out.
Source: Bill Murphy Jr, Inc.com
It pays to know your team players. Can you differentiate the productive and destructive people in your team?
Deloitte just published a large-scale survey of Millennial employees (and 1,844 Gen-Z workers) that revealed critical gaps in skill development.
In the study, respondents listed job skills they felt were essential and how well they felt their employer fared in helping them develop those skills.
Here's where the four biggest gaps are, and how to start closing them:
1. Interpersonal skills
2. Confidence and motivation
3. Critical thinking
4. Innovation and creativity
So help close these skill gaps and maybe you'll stop-gap the outflow of young talent.
How do you change a mind?
Rely on objective facts and statistics. Develop a strong case for your side, back it up with hard, cold, irrefutable data, and voila!
It doesn’t work.
The mind doesn’t follow the facts. Facts, as John Adams put it, are stubborn things, but our minds are even more stubborn. Doubt isn’t always resolved in the face of facts for even the most enlightened among us, however credible and convincing those facts might be.
If facts don’t work, how do you change a mind, whether it’s your own or your neighbor’s?
1. Give the mind an out
We’re reluctant to acknowledge mistakes. To avoid admitting we were wrong, we’ll twist ourselves into positions that even seasoned yogis can’t hold.
The key is to trick the mind by giving it an excuse. Convince your own mind (or your friend) that your prior decision or prior belief was the right one given what you knew, but now that the underlying facts have changed, so should the mind.
But instead of giving the mind an out, we often go for a punch to the gut. We belittle the other person (“I told you so”). We ostracize (“Basket of deplorables”). We ridicule (“What an idiot”).
2. Your beliefs are not you
We all tend to identify with our beliefs and arguments. This is my business, This is my article. This is my idea.
When your beliefs are entwined with your identity, changing your mind means changing your identity. That’s a really hard sell.
A possible solution, and one that I’ve adopted in my own life, is to put a healthy separation between you and the products of you. I changed my vocabulary to reflect this mental shift. At conferences, instead of saying, “In this paper, I argue . . .,” I began to say “This paper argue.”
This subtle verbal tweak tricked my mind into thinking that my arguments and me were not one and the same. It was no longer personal. It was simply a hypothesis proven wrong.
3. Build up your empathy muscle
Humans operate on different frequencies. If someone disagrees with you, it’s not because they’re wrong, and you’re right. It’s because they believe something that you don’t believe.
The challenge is to figure out what that thing is and adjust your frequency. If employment is the primary concern of the Detroit auto worker, showing him images of endangered penguins (as adorable as they may be) or Antarctica’s melting glaciers will get you nowhere. Instead, show him how renewable energy will provide job security to his grandchildren. Now, you’ve got his attention.
4. Get out of your echo chamber
We live in a perpetual echo chamber. We friend people like us on Facebook. We follow people like us on Twitter. We read the news outlets that are on the same political frequency as us.
This means our opinions aren’t being stress tested nearly as frequently as they should.
Make a point to befriend people who disagree with you. Expose yourself to environments where your opinions can be challenged, as uncomfortable and awkward as that might be.
Strongly believe in an idea, but be willing to change your opinion if the facts show otherwise.
Ask yourself, “What fact would change one of my strongly held opinions?” If the answer is “no fact would change my opinion,” you’re in trouble. A person who is unwilling to change his or her mind even with an underlying change in the facts is, by definition, a fundamentalist.
In the end, it takes courage and determination to see the truth instead of the convenient. But it’s well worth the effort.
Source: Ozan Varol
If you think all CEOs are Ivy League educated individuals who set their eyes on the C-suite at a young age, you're mistaken. According to Elena Botelho and Kim Powell, authors of the book "The CEO Next Door," "Even the most impressive CEOs often didn't start out knowing they were destined for greatness."
However, many of us believe the stereotype that an "iconic CEO is powerful and patrician, a bold, charismatic extrovert with a flawless resume," write the researchers. This makes us falsely assume that we are not "CEO material." To the contrary, ordinary people can also become CEOs, note the authors, as long as they have the necessary traits.
Four simple behaviors can turn everyday people into powerful CEOs: decisiveness, engaging for impact, relentless reliability and adapting boldly.
1. Make quick decisions
Successful CEOs are decisive and are 12 times more likely to be high performers.
Steve Gorman, the former CEO of Greyhound, exemplifies why this trait is so crucial. When Gorman took over Greyhound in 2003, the business was losing money, according to the study. In addition, its parent company, which had just come out of bankruptcy, was ready to shut the doors on the company.
For four months, Gorman listened to his top execs create and dismiss plans to save the company but eventually he had enough. Among the many piles of data his team analyzed was a satellite map of the U.S. and Canada, which showed where all the nation's lights were concentrated (a reflection of population density). Unsure if his plan would work, he immediately set out to reshape Greyhound bus routes around these heavily populated regions. His strategy worked.
By the time he left Greyhound in 2007, the company reported $30 million earnings and was eventually sold for twice its 2003 value.
The authors explain that Gorman was able to "push forward" not because he knew his plan would work but because he realized that a potentially bad decision was much better than no decision.
2. Get people to buy into your idea
To be a successful CEO, you must engage those around you and inspire them to deliver results, according to the authors. But it's not as simple as being nice or getting people to like you. In fact, nice CEOs can be a drag on an organization because they focus more on being agreeable than getting workers to deliver quality results, say the researchers.
To effectively persuade people to buy into your ideas, the authors say to do three things:
a. Translate your vision and goals and be clear about your intent.
b. Understand the emotional, financial and physical needs of the people who will help you deliver results.
c. Establish everyday routines and habits to build relationships, which translate into action and eventually business results.
3. Deliver consistent results
CEOs who consistently deliver results and successfully execute plans are seen as reliable, according to the researchers. Once a CEO is known for their reliability, their odds of getting hired double.
"In business, reliable and competent people are cherished," write the authors. "Employers and clients are more apt to take risks on them and more apt to give them opportunities."
Virgin Group founder Richard Branson did just that when he created Virgin Australia, the country's second largest airline. The decision to launch this airline was actually the brainchild of his employee Brett Godfrey, who Branson immediately took a liking to because he was personable, detail-oriented and hardworking.
"[I] saw how he dealt with people in a personable manner and got the best out of them," Branson writes in his latest autobiography, "Finding my Virginity."
The billionaire was so impressed by his employee's work ethic that when Godfrey suggested creating an airline company in his home country of Australia, Branson bit. In 2000, Virgin Australia officially entered the aviation market with Godfrey as CEO ( a position he held until 2010).
4. Adapt to the circumstances
"To get to the top, aspiring leaders have to learn to navigate the uncharted," write the authors. They point to Kodak, Blockbuster and Borders as companies that failed because their leaders didn't adapt.
Their analysis also found that the CEOs who excel at adapting feel comfortable being uncomfortable. These execs understand that discomfort comes with change and learning. Furthermore, adaptable CEOs can let go of the past and focus on the future, much like Amazon founder and CEO Jeff Bezos.
Source: Ruth Umoh, CNBC
Raising fund? Pitching? Listen to what she has to say ...
If any work disciplines can offer us a window to the future, Financial Planning and Analytics (FP&A) is certainly one of them. In an environment where your speed to move can make the ultimate difference to your company, it’s no accident that financial forecasting is now at the cutting edge of change in today’s business world. And indeed, future business success may lie with those who embrace these changes sooner rather than later.
Faced with a post-Millennium atmosphere of uncertainty and rapid change, accurate forecasting – and the ability to reforecast at pace – has gained huge currency for business leaders. Add to this the influence of automation tools on traditional accountancy roles, plus the growing need for top-line expertise in reading and disseminating our vast quantities of data, and you have a sector at the centre of the action when it comes to change. Michael Page recently sat down with one of FP&A’s thought leaders to plot five factors driving change in today.
1. Speed and Simplification
Larysa Melnychuk, CEO and founder of the International FP&A Board, spends much of her time these days in discussion with the world’s leading CFOs about the changing world of financial analytics, financial planning and analysis.
She notes that in an environment of unprecedented “black swans” and “perfect storms” in our global financial market, business leaders are now more aware than ever of the need to move fast: “Situations that we never expected would happen, have happened in real life. Obviously in the business environment, this is one of the biggest reasons why financial analytics has changed,” she notes.
Combine this pressure-cooker environment with the arrival of newer and cheaper Cloud-based systems that are easily managed within a finance department, and you have an environment ripe for change. “In this dynamic business environment, it’s not possible to use the old, very detailed and static methods we used,” notes Melnychuk, who is based in the United Kingdom. As a result, the landscape for financial analytics is now more forward-looking and speed conscious than ever.
2. Find Your Key Drivers
In an increasingly complex environment, the ultimate goal is to understand in the simplest way, how a business makes its money. “We’re talking about simplification beyond the incredible level of detail that we had before,” notes Melnychuk. “It’s all based on key business drivers that are very important to identify – it’s about the 20% of drivers that explain 80% of the results.”
She notes that while many managers claim to know these key drivers, the reality of our big data world is that some drivers become less sensitive over time, while others prove less reliable. The ideal key drivers process should be part of a company’s business intelligence project, she notes. “It should be automated: and the drivers should be checked often, through analytical automation.” Likewise, it is also important to pay attention to both internal and external drivers, she notes.
Yet are many companies in the world currently doing this? “I would say not many,” she notes. “Definitely leading companies have started – and this is on the agenda of many companies.”
3. Tough Roles to Fill
Increasingly, she says modern FP&A teams require three distinct roles (as per Mark Gandy’s model). The first is the Architect who builds the driver-based model. Next comes the Analyst, who can track its progress. And ideally, a third role, that of a business-partner, or Communicator. “It’s difficult to find these three people in one role,” Melnychuk notes from her own experience as an FP&A director. “Analysts and Architects can be introverts, and not so comfortable going to the business to communicate it. I’ve seen this a lot.”
As such, it tends to be a tough job to fulfil: “Around 70% of UK CFOs, and 80% of US CFOs, say that FP&A roles are the most difficult to fill.” While in traditional accountancy, being qualified and examining past financial history was once sufficient, this is no longer the case. “In FP&A it’s different. We’re seeing the emergence of big data, from which you have to analyse these key drivers.”
4. Rapid Reforecasting
In an environment of sudden and intense market change, being able to identify and simplify your business drivers can provide an invaluable chance to move fast against competitors. “It’s dependent on the visibility of their data, and the ability to drill down and make decisions very quickly,” Melnychuk notes.
She takes the example of a sudden market interruption, a so-called black swan event. “With traditional planning models and traditional hires, you needed four-to-seven months to reforecast. But with this new generation of systems, models and people, you can probably do this in a couple of hours – almost in real-time.” One New York based banking group she spoke with, had reforecasting down to a fine art. “At the moment, it’s less than 36 minutes, while previously it used to be more than three weeks. This is an indication of how the world’s changed,” she notes.
“And why? It’s because traditional line-by-line forecasts were replaced by driver-based planning model that is implemented through system. Just 36 minutes and it’s done – and the quality of this forecast is quite good as well. So this is a good example of how much this can achieve.”
5. Future role replacements
Melnychuk anticipates a realignment ahead in terms of job roles within finance departments, as some traditional roles become replaced by new ones. “Fewer traditional accountants will be needed, and more combinational skills, especially with this data management, analytical and business-partnering will be needed,” she predicts. “I can see a time when data scientists work together with FP&A. And it is already happening in some leading analytical organisations”
Leading companies already enlist data scientists to identify, for instance, the one driver responsible for 60% of their forecasting. Melnychuk notes that effective driver-based planning can save teams a lot of time and effort: “You don’t need a lot of data, or to spend a lot of time. But to identify those key drivers really can help you to very quickly and very effectively build your plans and different scenarios for the future.”
“There will be this new work for analytical people, because they will start from different levels of analytics, and they will go forward. So it’s very motivational for good analytical talent to be at such organisations.”
Source: Luke Clark
Every day, a small Ant arrived at work early and starting work immediately, she produced a lot and she was happy. The boss, a lion, was surprised to see that the ant was working without supervision. He thought if the ant can produce so much without supervision, wouldn’t she produce more if she had a supervisor!
So the lion recruited a cockroach who had extensive experience as a supervisor and who was famous for writing excellent reports. The cockroach’s first decision was to set up a clocking in attendance system. He also needed a secretary to help him write and type his reports. He recruited a spider who managed the archives and monitored all phone calls.
The Lion was delighted with the cockroach’s report and asked him to produce graphs to describe production rates and analyze trends so that he could use them for presentations at board meetings. So the cockroach had to buy a new computer and a laser printer and recruit a fly to manage the IT department. The Ant , who had been once so productive and relaxed, hated this new plethora of paperwork and meetings which used up most of her time.
The lion came to the conclusion that it was high time to nominate a person in charge of the department where the ant worked. The position was given to the Cicada whose first decision was to buy a carpet and an ergonomic chair for his office.The new person in charge, the cicada, also needed a computer and a personal assistant, whom he had brought from his previous department to help him prepare a work and budget control strategic optimization plan.
The department where the ant works is now a sad place, where nobody laughs anymore and everybody has become upset. It was at that time the cicada convinced the boss, the Lion, to start a climatic study of the office environment. Having reviewed the charges of running the ant’s department, the lion found out that the production was much less than before so he recruited the Owl, a prestigious and renowned consultant to carry out an audit and suggest solutions. The Owl spent 3 months in the department and came out with an enormous report, in several volumes, that concluded that ” The Department is overstaffed..”
Guess who the lion fired first?
Most people have a certain image in their minds when they think of a founder/CEO.
They picture the boss in the corner office, standing behind her desk, gazing out over the city. They imagine someone calling all the shots, and everyone relying on their insight and wisdom — a visionary who is never wrong. They fear being grilled, berated, and guilted into working long hours — inevitable top-down command-and-control.
When startup founders take this approach today, they fail.
The more involved you are with the day-to-day work, the more difficult it will be for you to scale, and the less likely it is that your company will succeed.
As the founder/CEO, you have one job: Look at where you’re spending your time, then fire yourself from that position.
Here’s what I’ve learned that makes this possible:
1. Perform The Role, Then Hire Someone Better
The best founder/CEOs are jacks-of-all-trades.
Their value doesn’t come from doing one single thing exceedingly well. It comes from being able to perform an array of things fairly well, and then having the awareness to find someone better than them to take over those responsibilities — allowing them to move on to the next most-important role and the next most-consequential hire.
2. Hire People to Help you Hire.
If you’re doing this well, you’ll quickly reach the point where the company will outgrow your own ability to “chair hop.”
Instead of filling one role at a time, you’ll be filling three.
3. Bring Top-Down Context, Not Top-Down Decisions
As the founder/CEO, you are in the single position that can see across roles, across skill-sets, across your market, and across your customer base. That is your unfair advantage. You aren’t better than your team, but you certainly have more context than your team. How can you use this to empower them?
I like to picture my org chart upside-down. They don’t report to me. I report to them. What do they need to succeed at their roles? Context to prioritize. Context to make decisions. Context to know when to push for more resources, or when to make-do.
The moment you stay married to any one role, you’ve stopped searching for your next replacement, and the company has begun to stand still.
All in all, so many founders forget that the ultimate goal is to make themselves completely unnecessary to the day-to-day operations of the company.
The irony of course is, as a founder, you’ll never be completely unnecessary to the business. In constantly trying to “fire yourself” from different roles, the company will continue to grow. As it grows, new responsibilities and challenges will arise, and you’ll have to repeat the process of getting people up to speed all over again.
But that’s the point.
Source: Jeff Seibert. Read more by clicking at the image below.
Why, all of a sudden, are so many successful business leaders urging their companies and colleagues to make more mistakes and embrace more failures?
In May, right after he became CEO of Coca-Cola Co., James Quincey called upon rank-and-file managers to get beyond the fear of failure that had dogged the company since the “New Coke” fiasco of so many years ago. “If we’re not making mistakes,” he insisted, “we’re not trying hard enough.”
In June, even as his company was enjoying unparalleled success with its subscribers, Netflix CEO Reed Hastings worried that his fabulously valuable streaming service had too many hit shows and was canceling too few new shows. “Our hit ratio is too high right now,” he told a technology conference. “We have to take more risk…to try more crazy things…we should have a higher cancel rate overall.”
Even Amazon CEO Jeff Bezos, arguably the most successful entrepreneur in the world, makes the case as directly as he can that his company’s growth and innovation is built on its failures. “If you’re going to take bold bets, they’re going to be experiments,” he explained shortly after Amazon bought Whole Foods. “And if they’re experiments, you don’t know ahead of time if they’re going to work. Experiments are by their very nature prone to failure. But a few big successes compensate for dozens and dozens of things that didn’t work.”
The message from these CEOs is as easy to understand as it is hard for most of us to put into practice. I can’t tell you how many business leaders I meet, how many organizations I visit, that espouse the virtues of innovation and creativity. Yet so many of these same leaders and organizations live in fear of mistakes, missteps, and disappointments — which is why they have so little innovation and creativity. If you’re not prepared to fail, you’re not prepared to learn. And unless people and organizations manage to keep learning as fast as the world is changing, they’ll never keep growing and evolving.
So what’s the right way to be wrong? Are there techniques that allow organizations and individuals to embrace the necessary connection between small failures and big successes? Smith College, the all-women’s school in western Massachusetts, has created a program called “Failing Well” to teach its students what all of us could stand to learn. “What we’re trying to teach is that failure is not a bug of learning it’s the feature,” explained Rachel Simmons, who runs the initiative, in a recent New York Times article. Indeed, when students enroll in her program, they receive a Certificate of Failure that declares they are “hereby authorized to screw up, bomb, or fail” at a relationship, a project, a test, or any other initiative that seems hugely important and “still be a totally worthy, utterly excellent human being.” Students who are prepared to handle failure are less fragile and more daring than those who expect perfection and flawless performance.
That’s a lesson worth applying to business as well. Patrick Doyle, CEO of Domino’s Pizza since 2010, has had one of the most successful seven-year runs of any business leader in any field. But all of his company’s triumphs, he insists, are based on its willingness to face up to the likelihood of mistakes and missteps. In a presentation to other CEOs, Doyle described two great challenges that stand in the way of companies and individuals being more honest about failure. The first challenge, he says, is what he calls “omission bias” — the reality that most people with a new idea choose not to pursue the idea because if they try something and it doesn’t work, the setback might damage their career. The second challenge is to overcome what he calls “loss aversion” — the tendency for people to play not to lose rather than play to win, because for most of us, “The pain of loss is double the pleasure of winning.”
Creating “the permission to fail is energizing,” Doyle explains, and a necessary condition for success — which is why he titled his presentation, with apologies to the movie Apollo 13, “Failure Is an Option.” And that may be the most important lesson of all. Just ask Reed Hastings, Jeff Bezos, or the new CEO of Coca-Cola: There is no learning without failing, there are no successes without setbacks.
Source: Harvard Business Review, Bill Taylor.
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