Feb 182012
 

CANNOT IMAGINE A SUPERIOR CONTEXTUAL EXPLANATION OF THE RISE OF INDUSTRIAL JAPAN

The phrase ‘Japan Incorporated’ gained prominence in the 1960s and persists to this day. While many see Japan as an industrial behemoth with a diversified set of complex and heavy industries not many know how this came about. MITI And The Japanese Miracle: The Growth Of Industrial Policy, 1925-1975 is an insightful book on the topic with an in-depth focus on MITI, Japan’s famed and mystical Ministry Of International Trade And Industry. MITI practically conducted and coordinated Japan’s industrial policy from 1949 until 2001 when it was folded into the then newly-created the Ministry of Economy, Trade and Industry (METI).
Up until that time MITI was Japan’s blunt instrument of economic policy and industrial structure. It was both revered and feared by the industries and cartels it espoused and nurtured. Staffed by handpicked and elite bureaucrats, this prodigious promoter of Japan’s industry, productivity and exports was the official forum responsible for knitting the country’s moves in the economic arena from its perch in Tokyo. It is not explicitly mentioned in this book, but on occasion, MITI was also complicit in suppressing internal Japanese citizens’ dissent or protest against industry such as with the infamous Minamata Disease. MITI was also feared and disliked by foreign interests for its skillful shielding of Japanese economy from competition and penetration with the aid of both its own guidelines and associated laws.

MITI is “without doubt the greatest concentration of brain power in Japan” according to the book. That is a profound statement by Chalmers Johnson, the author and, now-deceased, Japan expert. I had read Johnson before – in his guise as a critic of the American empire – but picked up MITI And The Japanese Miracle in search of information and context on Japan’s development and industrial super-growth. The book delivered. The amount of information, history, context and analysis here is impressive. It is doubtful that any Japanese tome has as much information condensed about the famed ministry and its staff. With its appendices it sequences the ministers, vie-ministers, bureaucrats and actors in the ministry with astonishing detail. This book includes a contemporary history of Japan’s bureaucracy from the beginning of 20th century until 1980.

Beginning in 1949 MITI set out to enact a plan-oriented market economy system. The `Miracle’ covers the years 1925-1975 from a 1980 vantage point. In the process the author dispels a few myths about the rise of Japan. Exports were not the drivers of Japanese economy as many take as gospel. Exports as a percentage of GNP have typically been 50% of the economies of countries like Canada, UK or France. As such, the author argues that growth and success were children of the developmental school (i.e. state-related) economic growth.
As mentioned, the author ascribes to Japan the `plan-rational’ (versus US or UK’s `market-rational’ for example) term, a state which leads its industrial base. MITI’s economic bureaucracy was dominated by non-economists. Interestingly, in recent months, in response to their economic crises, Italy and Greece have cast aside politicians in favour of economists at the helm. This point is additionally interesting because in the `60s Japanese were, somewhat disparagingly, called “economic animals.” This is oddly untrue since these creatures of commerce were apparently subordinate to the bureaucracy.
Johnson notes about Japan that “Nationalism is an active element in economic affairs.” The state (i.e. MITI in this case) had been engaged in both the transfer of knowledge among enterprises and facilitating the sharing of best practice from one enterprise to another – of course when it determined that it was in the interest of the nation and the state. Imagine that in the wild capitalist West! The book amplifies, through facts supplemented with direct quotations that MITI believed that market power alone was insufficient for national progress and it went as far as seeking on occasion to shift industries and activities wholesale to newer ones. A prime example is how the government and bureaucracy successfully attempted to starve the traditional textile industry of Japan in favour of heavy industry. In post-war Japan of 1947 priority production and heavy industry won over its smaller brother. The policy accelerated once Japan was granted its independence under the San Francisco Peace Treaty of 1951. Much of it was even at the immediate expense of the civilian population. Additionally, the guidelines and policies entailing over-loaning to targeted heavy industries spawned a lessening reliance on capital markets. As a result, longer-term views (not quarterly revenue or annual metrics) were the prime objectives of the Japanese system. This is markedly different from the West where capital availability and stock market equity mean nearly everything.

Interestingly, this was not a clear-cut decision in Japan. As conscious as the eventual decision was in the wake of World War II a robust discussion had ensued with some arguing for investment and organization for a small business economy. Between 1925 and 1975 Japan tried, what Takashima Setsuo the deputy director of MITI’s Enterprises Bureau described, the three methods of implementing industrial policy. These, as explained on page thirty, are `Kanryo Tosei’ bureaucratic control, `jishu chosei’ civilian self-coordination or `yudo gyosei’ which is administration through inducement. Between the early `50s and early `60s Japanese exports went from being dominated by textiles and fibres to machinery and metal products in only the span of 10 years. Such was the single-minded force of the endeavour. Chalmers’ information matches Professor Terutomo Ozawa’s premise that, despite mobilizing for full-scale war in the ’30s, Japan became an industrial nation in the ’50s and ’60s. Ozawa incidentally is a great read to complement Chalmers. I found some of Ozawa’s writings on the net and recommend it to add to one’s body of knowledge on the industrialization of Japan. Had that argument gone the other way the course of contemporary worldwide sociology might have been altered. As much as the effort was concentrated and all-composing it was not until the `60s that MITI and Japan fully realized that what they were doing was birthing of the industrial policy of a developmental state. The trifecta of elected government (including a LDP party government especially beholden to several sectors), expert bureaucracy and industrialists (which are often staffed from the former) is what gave rise to the rapid growth of Japan.

The evolution of MITI was not uneventful. MITI formed a kind of public/private cooperation that would intermix state with industry. But unhappily 20 years of strife, strike and violence had follow WWII. Nationalism and the wars of `40s and `50s, strikes, demonstrations, bombings and a domineering military all had a hand in shaping what was to be. This is an important context as many observers imagine Japan’s rise to economic prominence as an even and smooth evolution. The miracle of `50s, `60s and `70s were by-products of the Japanese resolve to right wrongs and change the country’s lot. Possibly the Japanese would not have been as resolved to force the nation into prosperity were it not for what had happened including the explosion of two atomic bombs. Chalmers also tracks the bureaucracy involved to the Samurai class and that profession’s sense of public service, albeit with the ingrained sense of elitism. At the same time, the bureaucracy was heavily influenced and coordinated by strategic industries which also fund the politicians. This is another variable touching and moving the trifecta. The demarcation point for the rise of deliberate industrial policy is pinpointed as the financial crisis of 1927. As such, for the Japanese economy the depression was the genesis to solutions. Inspired by Germany, where several Japanese bureaucrats had served, and its government cartels Japan opted for cooperation, and not competition, as a model. This lead to an economic growth predicated on lowered costs, but not necessarily increased profit. Recall that short-term profit and market capitalization were secondary to Japanese enterprises. One of the material underpinning of this was the 1931 Important Industries Control Law – incidentally an enduring law along with its successors like National General Mobilization Law – which included the following tenets:

1- Replacing competition with self-control
2- management and enterprise profitability beyond immediate performance
3- Government, State and enterprise cooperation
4- Considering the good of the nation versus foreign

The law legalized self-control and was the basis for some 26 MCI-sanctioned industrial cartels for their designated sectors.
This is structure that MITI inherited and began to organize and mould for its coveted industrial structure, which included reining in, what it deemed, excessive competition, coordination of investment and a public-private cooperation. In this endeavour it was abetted by the Japanese lifetime employment systems, enterprise unionism and the seniority wage system (nenko) all of which yielded greater labour commitment. This ‘system’ (In a 2002 paper Ozawa calls it “interdependent institutions” which included the Japanese placing different industries under the jurisdiction of different ministries in order to further complicate the domestic economic system) only functioned if it all worked together. Yet it bears repeated emphasis that it was not all measured and meticulously planned. Aside from the above-mentioned Japanese sociological imperative there was also 50 years of experimentation and adjustment to work through. The MITI-induced system reminds one of the differences between artificial medicine and supplements and natural goodness. Nature works better and is more effective every time because of the combination of its elements. It is the combination of components (say minerals and vitamins in the right proportion) that work wonders and not just the presence of one particle, such as Vitamin C alone.

MITI did rebuild the old Zaibatsu (cartel) base under another name, but special space is given here to Administrative Guidance (page 266 and on) including not only a definition and consequence, but also the narration of how it was validated and tested by the courts – a rare occurrence in Japan for a law to be legally challenged. Administrative Guidance became especially important after the trade liberalization that was part forced on Japan and was part seen as a necessity to spur Japanese exports. Unsurprisingly, MITI was both used by the government and unilaterally combated to delay the trade liberalization demanded by OECD (Organisation for Economic Co-operation and Development an international economic organization of the industrial world). Japan at first kept some 30 industries protected whilst calling itself liberalized, which was somewhat eventually officially only completed in 1980. However, the old Japanese methods and management styles were not necessarily favourable now and Japan would fall into more difficult times for this reason, as well as the asset bubble of the late ’80s and The Plaza Accord. This last ‘Accord’ may be considered a betrayal of Japan by its own government.
All the achievements of Japan are even more impressive as amazingly the country has very little natural resources, which ironically is likely part of the reason why it set about to do what it did.

MCI (Ministry Of Commerce And Industry) became MM (Munitions Ministry) – to serve the military in the Pacific War – and became MCI again only to evolve into MITI in 1949. This new super economic ministry was assertive and successful, but due to its nature, would also later clash with the fair trade commission set up by SCAP (Supreme Commander of Allied Powers, the American authority ruling Japan following WWII), a tension the author describes as very beneficial to SCAP, as well as the Foreign and Finance ministries in Japan which saw MITI as an overreaching entity.

As deliberate and planned as it all seems Chalmers also devotes time and attention to the more doleful aspects of it all. It is not all business in industrial Japan. As one can see, family connections (keibatsu) and nepotism existed. These took the form of classmates working together, alumni of certain universities (especially Tokyo Law) hiring from the same, industry making room for MITI retires and the more traditional familial connections.
As a non-national reading Johnson’s book his probe into the world of MITI and Japanese economy is somewhat awe-inspiring. He has assembled an exhaustive genealogy of MITI and related bureaus, which entails so many names one marvels. One also notices that the names begin to blend into one another and that they are all male. That says something about the Japanese patriarchy. Readers should also be warned. The book contains many Japanese terms – a function of Johnson’s familiarity with the subject-matter – and one may find it necessary to use the Index to refer back to the first explanation of the meaning of the Japanese terms. Speaking of which, the bibliography and indices are unparalleled in referring back to source material.
As indicated, the book contains much insight not just on MITI and its particular methodology, but also on the wider economic and trade policies and its supporting structure in Japan.
Another measure of the success of MITI’s coordinated `mixed economy’ with state as an actor was how several countries adapted it to their own benefit. This type of plan-central model was emulated by Korea, Taiwan et al. On a tangent, Ozawa is also assertive that Japan was given leniency in liberalizing its system and opening up its industry and domestic economy to foreign competition by ‘virtue’ of the Americans’ desire to preserve it from socialist encroachment. In this way, the Korean War was advantageous to Japan. These Western fears bought the Japanese much time to gain industrial footing before gradually opening up following the death of the Soviet Union.
A major caveat, which the book understandably does not address as the focus here is MITI, yet is relevant, is exceptionalism that does exist among Japanese conglomerates. The author allows that for every Nissan or Mitsubishi working closely with MITI and being a part of the industrial structure, there is a Sony or Honda which showed little interaction with the Japanese government beyond what is normal anywhere. The Americans even endorsed and supported a war criminal, Nobosuke Kishi, as Prime Minister in 1957.
At some point in the late `60s and early `70s MITI lost its luster and currency in Japan. Its waning popularity was a function of scandals, some conflict and even its opposition to progressive law making. One such anti-progressive posture was its pushback against proposed laws to combat industrial pollution. It was somewhat restored when in 1973 and 1974 the Arab/Israeli war ensued, with the world falling into the grip of the Arab oil export embargoes. It, and its associated energy policies, allowed MITI to demonstrate its importance once again. Japan diversified its quest for oil to Iran and Mexico, and away from the Arabs, including the promise of and the construction of a large Petrochemical facility in Southern Iran in exchange for reliable oil supplies. Japan being Japan it had the benefit of little in the way of natural resources such as fuel or ores. The country was dependent on foreign energy.
Nonetheless, by 1980 Japan was one of the richest nations on the planet and began formulating its industrial and trade guidelines on that basis.

 

Nov 212011
 

THE A TO Z OF RETAINING EMPLOYEES BY KEEPING THEM ENGAGED, SATISFIED AND GRATIFIED

 

 

Because everyone likes a good list Love ‘Em Or Lose ‘Em Getting Good People To Stay contains 26 chapters (beginning from A and ending in Z) of strategies, ideas, questions and surveys on how to keep one’s best employees. Written for managers of people, the book offers strategy and advice on how managers can keep their best employees to stay, and stay to be productive and performing.

The book may be considered anachronistic given the tough times, but there is no better time than now to keep one’s top employees and, as such, Love ‘ Em Or Lose ‘Em’s concept would be timeless. Also, remember the book is addressing employees one likes to keep. Whether the book is too liberal or enlightened and how the pressures and deadlines of real life come between theory and practice should not be a hindrance in the adoption of all, several or even just one of these notions.
Personally, using acronyms or colloquial would not be my choice, let alone in a book’s title, but there is a plethora of topics and angles considered here. Here are select notes, which are elaborated on in their respective chapters:

A- In its pages the book features reasons why people stay at their work (page 13: exciting work, career growth, good co-workers, fair pay…), offers ‘Stay’ interview questions (page 15: ask, ask, ask for knowing is better than not and superior to guessing)
B- Managers believe money is the most important factor in making people stay and, not having enough to offer, fear asking employees about their needs and wants. The book argues that, as mentioned, asking is nonetheless a must and indeed managers are the prime reason employees stay or go. One’s manager is where the buck stops. Company culture is important, but managers are more germane. Loyalty is to boss, co-workers and work; not to buildings or brands. Managers need to be held accountable for keeping their employees.
C- Managers need to know their people’s talents, offer perspective, discuss trends, discover options, co-design an action plan and then support it. For instance, a vertical promotion is not always the sole option. A horizontal move may be a better fit and more complementary.
D- The authors argue that everyone is prejudiced one way or the other. As such, conveniences and preferences sometimes masquerade as requirements. Trust the employees and they become trustworthy.
F- The chapter speaks to work/life balance and poses questions such as ‘what is the point of a high-power job that makes you miserable?’ Advice: be caring and flexible. Set clear expectations and explain they need to be delivered, but from there offer flexibility.
G- Not all who want to be promoted will leave if advancement is not available, but good ones will leave if they are not challenged. Other options exist and include lateral movements and relocation. Help your employees with their goals.
H- Managers must hire right fits with patience. Listen to candidates and employees and do not hire in desperation. Embarrassingly, the book references itself and suggests leaving a copy of the book on the table during interviews, thus signalling what a great place the company is. On a more modest note, the authors speak to re-recruiting people.
J- Here is something useful: a ‘jerk’ check list. Do you recognize yourself or someone you know?
K- Have fun at work! It makes people more productive and never compromises results. Of course, it has to be in conjunction with achieving company results.
N- Here the book makes a very good point. If a company loses a piece of equipment, say a computer, the police or security is called in and an investigation is launched. Why is the same care not accorded the loss of an employee? According to the book, and oft-cited statistics, replacing a staff member costs twice the amount of the person’s salary and escalates to three times the annual salary for platinum employees.
T- The book insists on truthfulness and honesty. Managers should be candid and discuss the good and the bad. Confidential company secrets and others’ personal information notwithstanding, information is to be shared. Moreover, the sharing should not be restricted to annual evaluation time. As well, share bad information in-person.

These are just overview samples of the book’s content. One must pick all or the most relevant and commit to them. The book does not drill deeply into any one topic and, therefore, is better suited for quick reference, fast learning and quick practice.

Ultimately, if one believes the content, Love ‘Em Or Lose ‘Em is not just pro employee; it is also pro employer.

Oct 142011
 

THE BOOK OF QUITTING OR PERSISTING

 

 

The Dip is an easily digestible self-help book comprised of 80 pages in short form with a simple message. Godin implores the reader to quit when appropriate, brave it when the circumstance demands it and to recognize the dip, which is a trough or low-point that may or not be the catalyst for success.

According to Godin one can face three situations. These are characterized as curves and are:

-The Dip: the period or stretch between kicking off a job, a project or the work required between the beginning and fruition. The author advises one that quitting ahead of time – i.e. not starting – is necessary if one is not going to be the best at something. Godin, however, values the best greatly and emphasizes that the super stars are number one because they recognize the right potential and slog in-between. These types fight through and come out winners at the other end of the dip.

-The Cul-de-Sac (dead-end): is a job, process or plan that simply put is going nowhere. The author wants you to quit and to insist your friends quit too when in a cul-de-sac. Don’t wait, he insists, quit now and save your time and life.

-The Cliff: is the rarer case where there is a deep and dangerous plunge at its tail-end. Godin’s example is smoking and the consequent emphysema. There is a sharp drop at the end of The Cliff.

The Dip is slightly better than the average ‘advice’ or ‘help’ book. Compared to malicious stuff like QBQ that tells employees to become modern corporate serfs Godin does have a point. It encourages people to be realistic and quit when necessary with pride and courage or persist and work through given good potential. He does prescribe quitting ahead and not avoiding pain as well when the dip is not right.

Having said that, it is not quite clear how one would identify a dip versus a Cul-de-Sac. While he invites one to ask himself whether measurable progress is being made that in itself is hardly simple or self-explanatory. The metrics are missing of course. It is too bad, but at least the author does insist that suffering in silence or feeling like failures when quitting are not virtues. Coping is actually a culprit.

Aug 292011
 

“HE WHO ASKS THE QUESTIONS HAS THE POWER”

 

 

 

Secrets Of Question Based Selling is an odd title not to mention grammatically suspect. It sounds as if the book is making reference to a methodology that one has to study elsewhere and only then arrive at this book in order to acquire said system’s ‘secrets.’ Speaking of which, the book has over one hundred ‘secrets’ in boxes and captions, yet none of them are actually secrets. They are better described as tips or perhaps factoids. Even if they were secrets, which they are not, surely that can be no more since the book’s publication! Most are self-evident to say the least. Here is Secret #1 for example: “Salespeople are being held at arm’s length, and rejection is making it more difficult for them to stay motivated.” How about “Greater needs cause prospects to feel a greater sense of urgency for finding a solution and making a purchase”? Who knew? Sarcasm aside, and not to dwell too much, what is the book like? Well, it claims to double – not triple, improve incrementally or improve by 54%, exactly double – your sales.

Tom Freese’s book was recommended to me by a sales director and so I began it with anticipation. Nonetheless, it took me longer to get through it than most books. For some reason it was a lengthy and difficult read despite not being a long book or being written in difficult English. The book is likely verbose and has a difficult time getting to the point. It is divided into three parts.

Part I is a short course on the QBS Methodology.

Part II speaks to the power of strategic questioning,

while part III, to the books credit, gets into the Implementation of what one has learnt and moreover delves into the larger sales process including prospecting and presentations. This last part is partially like bonus material. Here Freese suggests taking the price/cost question that inevitably follows a presentation and pivoting it into the next step of the sales process including, but not limited to, asking questions as to where one stands.

 

QBS is a solid methodology and covers the fundamentals well. Certainly it borrows from a few other systems and gives the reader/learner a solid foundation for sales or a nice compact digest of everything in one place. Unquestionably, the concept of asking and asking and finding better ways of asking is sound and reasonable in sales. Nonetheless, there are several things to argue about. The introduction to the book erroneously claims that most sales trainings are not question-based. This seems inaccurate – unless there are many courses out there that have not crossed my path – yet the premise that questions uncover needs, standing, establish credibility and gain internal champions is spot-on.

 

Freese’s main hope is to have the reader stand out by improving the chances of a sales win by increasing the probability of success and decreasing the risk of failure. This, so far, is inexact as no two sales are identical and different processes will have to be followed, but having a parameter and methodology is a necessity. Freese is forthcoming in this regard. It follows that Freese believes his methodology of reducing risk increases productivity by increasing wins, enhancing excitement and diminishing rejections is the way to proceed. He notes that the average sale requires approximately five closing attempts which implies a lot of risk. Therefore, instead of sticking one’s neck out, he suggests probing for closure in the right way and at the right time. All this, by sending pings to gauge interest instead of directly asking, which might solicit an outright rejection.

 

Freese talks about ‘mismatching’ reminding the sellers that customers often engage in it almost subconsciously. People respond in a contrarian fashion. Seller: “can you see how we have the best solution?” Buyer: “well, you are not that good!” Instead of falling into that trap he suggests establishing ‘mutual interest’ which is achieved through strategic questioning until the buyer acknowledges a need. People mismatch because they are insecure and sellers must stop facilitating such responses. This thought suggests pushing for a sale is the wrong approach as it prompts buyers to reciprocate and push back harder. A better alternative is uncovering needs through questioning.

How? Reduce risk by 1- asking more questions and making less statements, 2- be more credible (diagnostic questioning conveys expertise and familiarity), 3 – make them curious, 4- ask, ask, ask and 5- Get into Momentum Selling. Freese wants the seller to become the messenger, not the message.

Here is where Freese introduces his notion of Gold Medals & German Sheppards. Some people strive for something (e.g. organic nutrition), while others run away from certain things (e.g. junk food). Find out which is which and work the angle. Some people might be considering both aspects. Based on that notion, strangely, Freese asserts that with QBS the customer’s personality type becomes irrelevant. That is hard to swallow for this writer. The real game in sales is changing latent needs to active needs (without needs the best salesperson is out of luck). That is, sellers need to transform ignorance into pain as most buyers are in the ‘latent’ category. This is where a process of mutual discovery works, one that turns prospects into informed buyers. Ask questions. Ask questions according to three definitions and categories: 1- Scope, 2- Focus and 3- Disposition. The conversational model of QBS, which is key to relationships, is:

 

 

It begins with creating curiosity. Page 104 suggests a script based on that notion (complete with a grammatical mistake) that suggests leveraging a name within the company when leaving a voice-mail or conversing in order to create curiosity in the customer’s mind. “since she (other person at the organization) didn’t know all the answers…” People buy from people and one has to build credibility first. After all, a salesperson does not initially have a relationship with the buyer. To build that employ strategic questioning by managing:

1-  Scope: How broad is your questioning? The more open-ended a question is the broader its scope. Yet, credibility is a prerequisite so open-ended questions are better for expanding questions and not for establishing them. Freese suggests asking a specific question and then delving into a series of diagnostic question.

2- Focus: Escalate the focus. Ask the right questions. Status (opportunity?), Issue (of prospect) and be analytical, Implication (of issue) and make it emotional, Solution (what is it?). Asking “what extent is ___ important” also avoids mismatching. Questions develop the relationship.

3-  Disposition: Since the situation changes it is important to know about the adverse factors involved. Not asking disposition questions or avoiding bad news limits one knowledge. Asking allows control since prospects are often reluctant to share bad news. This is why sellers mistakenly keep asking ‘hopeful questions’ like “we are doing fine, right?” Instead, it is better to ask ‘neutral questions’ like “are we going to hit the end-of-the-month deadline, or are we not going to hit that deadline?”

 

Additionally, QBS suggests we ask our buyers to become us and ask them what they would do were they in our shoes and what would the outcome of one’s action be. This is an interesting proposition. The book especially suggests trying this with an internal ‘champion.’ This is risky, however. One wonders if completely relying on an internal champion is sane as it might, to some degree, relinquish one’s own first-hand presence.

Selling is a process; but sales processes are no longer linear. Freese notes that some parts are more important than others and need a larger emphasis. On page 167 one comes across the book’s most provocative assertion that “customer is not always right.” If they were they would know everything regarding products and services and that is that. They would not need the salesperson. As such, the salesperson needs to take charge of the sales process by asking questions. Questions are power. If one is asked a question, first answer it with a question in order to maintain control and only later answer the actual question.

As you can see from the above QBS is a good read or rather a good compilation of material. It borrows from Consultative Selling, SPIN and Winning Inc. liberally however. Reading those or about those methodologies are good prerequisites or companions to QBS.

Of course, and it goes without selling, the author closes the book with the standard attempt at launching a training/guru/institute career. The saving grace is that unlike so many others he actually has a few things to offer.

Feb 092011
 

THE CHANGE PROCESS (VIA ANTARTICA)

Our Iceberg Is Melting is a short and cute book discussing a serious adult topic. It was lent to me by one of my employees, which made me interested in reading it. The book by change management experts John Kotter and Holger Rathgeber is a fast and easy read and features several adorable illustrations depicting penguins and their habitat. Our Iceberg Is Melting, likely picking up on the theme of Climate Chaos and the recent penguin-themed films, creates a fable of penguins and habitat change to parlay a story about change, how to manage it, deal with it and get groups to adapt and adopt it.

One of the best-known books regarding change is undoubtedly Who Moved My Cheese? by Spencer Johnson. That book was also a succinct read wrapped in the coat of a fable and so comparisons would be logical – even if Johnson had not penned the introduction to this book. Unfortunately, while understanding and being sensitive to the theme and the importance of the topic, I was not a fan of Who Moved My Cheese and the same could be said regarding Our Iceberg…

The author attempts to enamour us and simplify the topic by picking a fable and using lovable penguins to boot, but lost in the shuffle is whether a change was necessary in the first place. No proof is offered. One needs to beware and watch for ‘change’ being used as a crutch and as an excuse for lack of willingness to address issues or drill into problems and challenges. More honestly in this regard would benefit most corporations and entities. Taking for granted that a change was indeed a necessity it is unclear why moving to another iceberg would mean a move to a better environment. Could the new iceberg be undergoing the same change and, therefore, the same problems? Moreover, could the birds be fleeing their problems in lieu of facing and repairing them?

The authors’ allegories and paradigm might well stand, yet a blanket pro-change statement, without examining need or necessity in the first place, is partly what ails many an organization and is unfair to the reader who is told to stop resisting change or else… and no justification is required. Indeed, the author insinuates that a resistance to change or demanding empirical evidence make one a “NoNo.”

Nevertheless, Kotter and Rathgeber offer the following process for enacting change. This seems simplistic, but essentially rational, although, never mind the propaganda effect of posters, signs and visual cues, alongside the need to sidestep and replace opposing views, which the authors advocate.

The process is:

1- Create A Sense Of Urgency (act immediately)
2- Pull Together The Guiding Team (leadership skills and credibility required)
3- Develop The Change Vision And Strategy (contrast the future with the past)
4- Communicate For Understanding (convey the vision)
5- Empower Others To Act (help those who are onboard)
6- Produce Short-Term Wins (an immediate win, no matter how small, is helpful)
7- Don’t Let Up (accelerate the momentum and push hard)
8- Create A New Culture (the new ways need reinforcement for a while).

Feb 032011
 

SCIENCE VERSUS BUSINESS AND MANAGEMENT

In Drive Daniel H Pink, a former political aide-turned author and lecturer, overturns the conventional notions that operate modern companies’ dealings with its people and debunks what we think are true regarding motivation and people management.

Much like a Malcolm Gladwell, who translates academia and science into layman’s terms for wider dissemination, Pink digests behavioural and management science from the last 50 years into a surprisingly effective essay regarding how to motivate human beings, which conventional and accepted ideas are gibberish and which actions are counter-effective. The book is interesting in its audacity and perhaps startling in both its conclusions and how so much that is so tested and known in some circles has not seeped into mainstream business. I say ‘perhaps’ because much of the contents is actually coherent and often what many of us have experienced and subconsciously identified, but never put quite found in one tome and in this way. Many managers, business owners or human resource professionals should prepare for a jolt judging by how seldom these ideas are practiced and, indeed, how often they are resisted. Apparently, much of the business world is still in the Dark Ages.

Speaking of which, Pink begins with definitions of Motivation 1.0 (early/basic man who seeks survival), moves to Motivation 2.0 (the carrot and stick model for reward and punishment) and his central theme of Motivation 3.0, which address intrinsic motivators for creative and non-routine work. Imagine how a reward could be a negative. Pink does! And when one thinks about the impossibility of that notion Pink pulls the example of volunteer-run success of Wikipedia versus the paid staffers of the deceased Encarta, which was previously a product of Microsoft. Perhaps Motivation 2.0 is increasingly irrelevant in the Western world. While routine and programmatic work can be outsourced, heuristic and non-routine work generally cannot. Since job growth in our circles is mostly from the latter carrots and sticks are a dangerously anachronistic paradigm that need to be severely reconsidered. As well as Pink explains the concept well; imagine the ways we have to go when imagining telling a sales manager to forego assigning a bonus/commission-based model to his or her salespeople. Unlikely, right? Pink seriously challenges that type of thinking. Adding rewards to pleasurable non-programmatic work has the opposite effect and indeed make the job unpleasant. Taking the extrinsic reward away renders the job pleasant in itself and gives it a sense of purpose and achievement. Pink will explain that financial incentives will make performance worse. Rewards, science shows, narrow the focus when the work calls for thinking and creativity and excitement. To be clear, he hesitates to render the same judgement for algorithmic work.
Having said that, Pink clearly elaborates and explains that ‘baseline rewards’ need to be sufficient for this model to work.

In the second part of Drive, Pink explains the three elements of true motivation. These are Autonomy, Mastery and Purpose. He then offers examples, actual case studies and techniques for unleashing these elements. Most managers and leaders prefer and seek Intrinsically motivated people (he calls them Type I) to Extrinsically motivated (type X) individuals. What if there was a template for unleashing the latter and harnessing the ensuing talent and energy? To be clear, Pink insists on fairness and equity being a prerequisite, but not as a form of carrots and stick rule. Going back to the three elements, Drive addresses the dominance of purpose over profit, specific goals over constant reward systems and giving people control over their work environments (including team-mates, work hours and tasks) as essential to motivation and success. Imagine it. Pink and many businesses did and the case studies are enlightening. The examples are there, but whether, as the book jacket proclaims Drive is “paradigm-shattering” depends on the dissemination and acceptance of the idea at the top echelon of the business and workforce entities. After all, Daniel Pink is telling sales managers, just to cite one example, to stop the commission-based system and to instead discover that the new hires have longer-term visions of their work. The news is that the message is hard to dismiss.

The book is padded with chapter summaries, conversation starters, an index and even a helpful glossary. This makes it a useful handbook on top of its exciting content. Having read it three times over the last several months, useful and exciting are certainly appropriate words here.

Challenging conventional wisdom could be termed Drive’s first and last word were it not for its drawing from actual academic studies and learnings.

Jun 262010
 

YOU, YOUR PROSPECT & YOUR COMPETITION – UNSELLING THE COMPETITION

How To Get Your Competition Fired advances the idea of The Wedge, a sales methodology that not only takes the prospect into consideration, but also places an emphasis on the need to deal with existing incumbent or in-progress competitive pressures. Randy Schwantz honed his sales skills in the insurance industry; however, one cannot see why the ideas and scripts in his book would not apply to other industries. Speaking of scripts, Schwantz is adamant early on that he will offer concrete and tangible examples, which he fulfils. The book was provided to me by an ethusiastic CEO, which encouraged me to read it.

The Wedge, therefore, focuses on dislodging the competition or dethroning the current provider. The difference, however, is the book’s emphasis that the process should happen at the customer’s own volition. As the seller drives the process and executes the script, the customer is driven to ask for the seller’s goods or services. It is a risky proposition – claiming that a regimented and scripted approach applies universally – but there is much to conceptually like here.

The book’s core premise is that consultative selling is limited in scope with its emphasis of a two-way dynamic in sales, namely that of the buyer and the seller. The situation, this book emphasizes, is more akin to a triangle. Competition exists and ignoring it, or not giving it equal consideration, is not clever. Good point.

The first step for a seller is to know his competitive advantage. With competition possibilities on price or product being unlikely or limited the emphasis falls upon service, of which the author insists on the proactive kind, which the customer currently does not see from its provider. As such, the demonstration of the differentiator begins now even before a sale has been agreed to. It is time to showcase what the possibilities are, what is not currently being delivered and what the opportunity cost of staying with the current provider is. In the comparison game, the contrast is amplified when the prospect sees the gap between service currently offered and what could be. This is partly why a direct criticism of the competition is ill-advised. The emphasis, again, is on allowing the customer to connect the dots independently. The big question is how to get the prospect to feel negatively towards the current provider? The answer flows from the pro-active service possibility and vision that the seller helps create. The customers need to know that they are under-served. Once this vision is initiated, the pain is leveraged as The Wedge. The possibility of getting the pain to go away forms the reason why the customer will begin to believe it is time for a change. This is facilitated through giving the customer control and predictability. How? First, by conducting extensive pre-sales research. Asking question is next, but one must beware of customers fudging on the truth or not being able to articulate their pain. Much of the emphasis here goes towards knowing the competition and the type of experience it is providing the coveted customer. This is where the suggested script comes into play.

Armed with this information the book recommends pivoting this information into a picture of a pro-active service including allowing the prospect to draw (imagine) a picture of your superior service. The Wedge aims to allow the customer to have a picture in mind, feel the pain of missing the superb service and thus expecting it and soon asking for it. As a psychological concept pain avoidance is a bigger motivator than seeking pleasure and therefore without felt pain there is little chance of a win.

The research before the direct interaction includes: 1- our strengths versus the competitors, 2- our weakness versus the competition’s strength and 3- our strengths versus the competition’s weaknesses. It is with number three that ensures one a win.

The Wedge Sales Calls has the following steps including example scripts, which follow the research and making the customer feel comfortable with you:

1- Picture Perfect (where the customer is to draw a mental picture). “I’m curious. When you receive (name of service) so that you don’t have to worry about (the pain), are you comfortable with the process?”
2- Take Away (where the rosy picture you drew of your service is yanked away – in line with the above-mentioned supremacy of pain avoidance). “Well, perhaps it’s not that important because (give any reason).” You repeatedly tell the customer that you are momentarily setting each issue aside as it is not very important.
3- Vision Box (allow the customer to tell you). “In regard to (area of concern), what would you like to see happen?”
4- Replay (emphasis). “Here’s what I’m hearing you say you want (repeating what the prospect said in Vision Box). Have I got that right?”
5- White Flag (the customer is now saying it). “So what would you like me to do?” In this section delivering a proposal is not enough and should be refused as a stand-alone next step. For the proposal to be accepted the customer must be willing to fire the competition. Hence, see the next step.
6- Rehearsal. “That’s the easy part (referring to the delivery of a proposal). May we talk about the hard part? How will you tell your other rep that it’s over?” That is, would the customer actual deliver the bad news to the competition should the proposal be acceptable. The book suggests being upfront about the difficulty of delivering a bad news to the competitors. The rehearsal is important because the competition will attempt to play defensive and match your offer. “Are you comfortable with everything? So it’s done. Great. I’ll go to work,” Only now will you, in fact, draw up a proposal.

The book does deliver on the tangible aspect of its technique and believes in a regimented approach. However, this strength can easily also be a weakness for obvious reasons. Moreover, while discussing the book’s negatives, the reader will notice a fair amount of postponement and stretching of material and pages before the book delves into the meat of the matter. Nonetheless, the build-up is not irrelevant. Each chapter offers a succinct summary as well and the book includes an index.

This book was handed to me by a company president and my curiosity factor was high. How to Get Your Competition Fired (Without Saying Anything Bad About Them): Using The Wedge to Increase Your Sales is different, interesting and possibly more concrete in its content than the average sales book.

Mar 122010
 

A SIX SIGMA PRIMER

whatissixsigma

Coincidentally, only after picking What Is Six Sigma did it occur to me that the book is related to another one I recently put down. In fact, What Is Six Sigma was mentioned and cited in What Is Six Sigma Process Management? By Rowland Hayler and Michael Nichols, which I put down in December. The fact that the books have the same publisher and similar cover designs should have given it away, but either the clues did not register or the power of subconscious is greater than believed!

The book at hand is really for all levels, which appeals to the beginner in me. The material spans from introductory and nuts and bolts to advanced. Most readers would be able to benefit from the contents if not utilize it as a starting point. At less than one-hundred pages, the book is short and does not contain a glossary or index.

“Six Sigma puts the customer first and uses facts and data to drive better solutions,” states page two, while beginning page fourteen the authors – whose credential are both academically and in practice impressive – assert the six themes of Six Sigma to include 1- a genuine focus on the customer, 2- data and fact-driven management, 3- processes are where the action is, 4- proactive management, 5- boundaryless collaboration and 6-drive for perfection; tolerate failure. This last theme insists that companies need to be ready to handle problems and willing to take risks. Theme number five is often promoted outside Six Sigma circles, but rarely given air. Perhaps this formal process could be its saviour? This chapter also insists that while some of the aforelisted might already be on your company’s agenda, this system brings them all together.

From there, the book gets considerably more technical in its mid-section delving into processes, techniques, statistics and analysis. These tools, skills and processes aim to deliver 99.99966% accuracy into the company’s near future. As the book admits, Six Sigma isn’t about incrementalism, yet the DMAIC (Define, Measure, Analyze, Improve & Control) cycle is best suited for projects that are “meaningful and manageable” the authors counsel.

The end chapters have advice for members of the Six Sigma working groups, non-members, senior executives (champions and sponsors) and provide the reader with a somewhat limited and cursory set of real-life examples. At one point, the authors get into advocating for Six Sigma beyond describing and defining the system. The promotion takes the form of unconcealed advertising. Given that – that is if the authors choose to go into this space – a more balanced take would have been beneficial. Insisting that anyone disagreeing with Six Sigma is an obstructionist or defensive or that folks involved with Six Sigma are holding a ticket to promotion, while others might be making a career-limiting move (p.75: “Doing so is potentially risky to your long-term employment…”) is dubious and unhelpful at best. These pages take earlier assertions (p.22: “Black Belt-hood as a springboard to … promotions and bonuses.”) to a new level. If the authors have chosen to wade beyond description and definition of the process and into advocacy then a balanced approach is called for. After all, many companies and individuals never get involved in Six Sigma and have turned out well. Nevertheless, What Is Six Sigma is both interesting and beneficial and a good, quick and concise read for those interested in the topic.

Mar 122010
 

THE AUTHOR’S PARABLE FOR CHANGE AND HOW TO DEAL WITH IT

who moved my cheese

Who Moved My Cheese? is a perennial favourite and oft-cited book dealing with change management and perception. Having just re-read The One Minute Manager – written by the author Spencer Johnson and his co-writer Kenneth Blanchard who supplies a foreword here – picking up this book was of even more interest to me. This book is a short and an easy read given its many images, compact text and larger font.

It is not difficult to understand the many scornful reviews of this book. Change is an important concept and a reality. The book makes valuable points regarding the notion and its inevitability. Much of the parable and its lessons, which are simply put, but are anything but, are true and the stuff that make or break companies and people. Having said that, the writer’s simplification and quite one-sided take on the world of change is shocking and rather insolent.

Yes, change might be (and is) everywhere, but it should not be a self-fulfilling prophecy and a crutch – or metaphor for – irrationally explaining away anything and everything. Companies/societies/families and their respective leaders/politicians/heads have responsibilities and one of those is guidance and disciplined change or, better yet, improvement and pertinence. It is a wonder that the metaphorical characters receive no guidance or signposts. It is as if the author is advocating a free for all laissez-faire regime where anything goes and no responsibility is expected of those whose positions, experience and remuneration is based on management and assistance. Worse, the non-thinking mice are lauded, while the analytical ‘little men’ are derided. While not seeing or expecting change is indeed dire, and not reacting to it is worse, criticizing the thinking men is taking things one step too far. Spencer Johnson suggests Hem And Haw should think less and be more animalistic like Sniff and Scurry when in ‘The Maze.’ It is odd and, to use hyperbole, reminiscent of the behaviour seen in fraud and failures like Global Crossing, Adelphia and Enron where everyone did as they were told and did not give it a single thought. After all, ‘change happens’ these folk probably were thinking (or weren’t). Even the markets know that too much change is bad as evidenced by corporations fleeing revolutions or stock markets plunging in the face of change for its own eternal sake.

Let us be careful, Who Moved My Cheese? has a commonsensical idea and is correct in its insistence that people like their ‘cheese’ and hold on more firmly the more of it they have. This indeed is a recipe for future failure. It is what we would call behaving like a fossil, but there is no guarantee a better cheese is available elsewhere, or contrary to what the book claims, something else will be discovered… just by virtue of a mindless search. It is offensive to say that employees, workers, citizens should not expect any “benefits” as per page thirty-eight. That is both contrary to logic and unfair to people who have built a society or made a company what it is. Without a carrot, no one will bite after all. What does make sense is page forty three’s reminder that that one needs to stay sharp, adapt and not lose his or her edge. Doing the same thing over and over is indeed dangerous in most circumstances. What I certainly liked about the message was that one should not be afraid. What would one do if he were not afraid?

Humans have learnt to analyze and hopefully re-analyze as a learnt behaviour that is conducive to survival. Most of our learned behaviour stems from millennia of adapting to conditions and the instinct to survive. Even mice do the same despite the author’s metaphor to the contrary. It is only after such a process that one can approach change. And one option might be to not go on a search when no supporting evidence exists that setting out would be desultory, contrary to rational thought or the opposite of the lessons of experience. “Movement in a new direction” might fulfil the promise of new cheese or might lead to a drop off the cliff.

Not to belabour the point, but having read the book one remains unconvinced of the absolute supremacy of one option over the other. Remaining static, stationary and unimproved is not fruitful. Making changes for the sake of changing and doing so out of habit or as a way of hiding the actual reasons behind an occurrence is also disingenuous. Change is a fact, will happen and can, and often is, for the better, yet promoting it for its own sake or as a pretext is dishonest and that is where Who Moved My Cheese? goes too far.

Mar 122010
 

A Classic And Simple Management Tale

oneminutemanager

It is likely reasonable to deem The One Minute Manager as a classic among management books. The obvious theme is managing people and employees, but the cover promises ways to simplify one’s life, get more done and be less stressed. Along these lines, the authors have penned several other tomes including The One Minute Father/Mother, The One Minute Sales Person and others.

The One Minute Manager emphasizes human dynamics and managing people as a means of achieving results. It might seem foreign or simplistic to some who espouse technology over people, blame employees first due to a preference for a top-down culture, care more for corporations than people, and ironically end up serving neither or those whose books and programs are not served by conceding to the fundamentals, but that highlights the need for the book even more.

At first, the notion might seem absurd or a stretch, but the book is not a gimmick. The authors are a Ph.D. holder and M.D. respectively and have based the short and straightforward book on research into human behaviour and stimuli. This was my second time reading The One Minute Manager (The ‘One-Minute’ Manager?) and it felt as interesting as the first time, which was back in 1996. After all these years, the advice of Kenneth Blanchard and Spencer Johnson rings true as does the endorsement of C-level persons from firms like Chevron and Jack In The Box.

Perhaps like the reader, the book’s narrator is a somewhat incredulous and curious person who is justly sceptical about the concept. He meets a man who is a ‘One Minute Manager’ and has three tips. While these might sound simple and obvious the detail and methodology is the key. Using a story format, the book hones in on the three basic components of human management each of which should take approximately a minute to accomplish following the initial discussions and training that come with being a new employee or the initiation of a new project.

1- One Minute Goal Setting. The technique insists on writing one’s actionable goals down in a concise format of one page with no more than 250 words. That leads to knowing how to constantly measure performance, reviewing them and agreeing to them with one’s manager.

2- One Minute Praising. This is part of an upfront contract. Praise should follow the commendable action immediately and be specific. Impart sincerity by offering a slight physical touch and encourage more of the same.

3- One Minute Reprimand. This is also part of an upfront understanding. The criticism happens as soon as the manager knows of the mistake and is very specifically about a behaviour and not the person. This is followed by a few seconds of silence and a reversion to the praise of the person overall. Do not dwell on it. Be tough at first in order to make sure the pleasant part comes second.

People Who Feel Good About Themselves Produce Results. The number one motivator for humans is feedback on results.