Wednesday 19 March 2014

When Conflict Helps

“Society” teaches that conflict should be avoided and that it’s a sign of weakness if things become “heated”.  In most cases, this is true.  In some, however, conflicts need to surface and be dealt with for the greater good of the team.  

There are very few individuals who can avoid conflicts with colleagues and still get things done.  In some cultures (and I don’t just mean national cultures), it’s considered bad form to disagree or argue openly with a colleague, let alone your boss.  As a result, people either keep quiet and let their resentment simmer or may even pack up and leave.  When your talent heads for the exit, something’s wrong.

Many large organisations have lists of “desirable” qualities against which appraisees are rated as part of the “appraisal process” in order to discover “areas for improvement”.  One of these is often “Interpersonal Effectiveness” and/or “Sensitivity” and yet some of the most senior managers are often known for their lack of sensitivity towards others.  This problem bedevilled the now CEO of a global institution (and may, for all I know, still do so). 

Teams go through a process of  “Forming”, “Storming”, “Norming” and “Performing” when they come together for the first time, or when a new colleague joins.  However much the interview “vetting process” tries to ensure that only “suitable” candidates will be selected, it’s likely that conflicts WILL surface as different individuals with different views and ways of doing things come together.  The trend to hire individuals from all nations, cultures and backgrounds means that the chances of someone being in direct conflict with another are higher than before.

Equally, you don’t want to be hiring “clones” - people “just like you”.  You need people who will challenge others and “the system”, who will ask those “awkward questions”.  These are likely to be the people who see where the problems are and know what needs to be done.  Shutting them up (or out) merely risks the organisation sinking faster into complacency and lack of competitiveness.  

Instead of trying to sweep this under the proverbial carpet, organisations need mechanisms to ensure that:
  • People understand that conflict is natural;
  • Conflict is inevitable;
  • Conflict can be good;
  • Conflict can be handled;
  • Team members are aware of potential conflict situations;
  • Team members can get conflict into the open without fear of reprisal.

Often the individuals concerned know there’s a problem and WANT to find some way to resolve it (I’ve met very few who want to continue sabotaging their colleagues’ or team’s efforts).  They need to understand what it is about their way (and the other person’s way) of seeing/doing things that has caused the problem.  

An “honest broker” is the best way both to orientate team members when they first join, and to mediate when things become tricky.  If the same individual continually appears on the “conflict radar”, then something’s clearly wrong (not necessarily with the individual, either!) and needs to be adjusted.  The common solution, though, is to ask the person concerned to leave, rather than to work out why there’s a problem, face some (possibly) unpleasant truths and search for solutions.  It may be that the individual concerned has a valid point and that they may save the team/organisation from disaster if listened to.  Too often, though, they are ejected due to the natural instinct of humans to band together into “tribes”.

My view?  LISTEN to what people have to say and get their disagreements out into the open.  They may actually see something that you don’t.  If a mechanic kept telling you that your car needed repairing before it broke down, you’d probably listen.  When the same thing happens with your most valuable resource, maybe it’s time to listen to them as well.  



I have spent more than half my life delivering change in different world markets from the most developed to “emerging” economies. With more than 20 years in the world financial services industry running different service, operations and lending businesses, I started my own Performance Management Consultancy to offer solutions for improving performance, productivity and risk management.  I work with individuals, small businesses, charities, quoted companies and academic institutions across the world. An international speaker, trainer, author and fund-raiser, I can be contacted by email . My website provides a full picture of my portfolio of services.  For strategic questions that you should be asking yourself, follow me at @wkm610.

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Tuesday 11 March 2014

What Can't You Do Without?

I was recently in a situation where the house in which I was living had its power cut due to a severe winter storm.  2 ½ days later, when I left, power still hadn’t been restored; my host was embarrassed, the house was cold and no hot food could be cooked except for on a small camping stove.

As things go, I could put up with the discomfort this caused, although when I left it was for a long flight back to the Far East and I hadn’t been able to have a proper shower for 2 days.  It showed me what I took for granted when making plans.

It made me think about what businesses also take for granted when planning their budgets, a new business venture or to introduce a major change.  Things can and do go wrong.  Disasters don’t come with advance warning.

Different businesses depend on different things happening a matter of course for their smooth day-to-day running.  These can vary depending on country, legal system, infrastructure, weather and a host of other variables.  In the UK commuter travel can often be disrupted by unseasonable weather conditions such as snow or (as in 2014) heavy rainfall.  For businesses that depend on their staff being able to take a train from locations up to 2 hours away, this may mean the difference between staying open or not.

How do you set about identifying the critical support factors for your business, especially as they could vary depending on time of year, month or day?  Some things are relatively easy to identify; for example electricity.  Others (like failure of transport infrastructure) won’t be.  To Provide a framework, try using this which looks at the basic stages of providing a product or service.  Each stage depends on certain activities or events combining in the right sequence to allow you to move on.

Inputs
Payments
Processing
Outputs
Collections

Say, then, we start with “Inputs”.  These will be in the form of raw materials, parts information or any number of items.  

Examine what “inputs” you need to start the ball rolling.  Include people/companies involved in delivering them (does your supplier use a third party haulage agency to make deliveries, for example?).  

What information do you need about delivery dates, prices, etc (or is information part of your “input”)?  Where does it come from (remember, it may come from inside the business as well as outside)?

Who is/are your supplier/suppliers?  Where are they located in relation to your warehouse/factory/office?  

How do they get goods to you (“delivery channels” - road/rail/air/sea)?  Do deliveries from suppliers/to buyers depend on weather?  Does you supplier have to send raw materials/parts by road/rail/sea which can be disrupted by unseasonable weather?  Is the supplier’s warehouse located in an area prone to flooding?

Who is involved on your supplier’s side in getting things to you?  How an they be contacted?  Where are they based? Who is their deputy in case there’s an emergency?

What processes do they undertake to ensure delivery?  Some consider this irrelevant, but if you don’t understand the potential pitfalls in your supplier’s operation, how can you safeguard yours?

What do you need in terms of power/water/gas/oil?  How secure are your supplies?  Do you need to have reserve gas tanks?

Which laws or regulations govern your suppliers, your business and customers?  What happens if one of you is found to be in breach?  Could they change suddenly, putting you, your suppliers or buyers at risk?

Environmental concerns are now playing an increasingly significant part in business.  Could you, your suppliers or customers be unknowingly (or knowingly) in breach of regulations, which could cause a shut down?

What do you use in terms of technology in your business?  How about your suppliers and customers?  How robust are your systems (could they be attacked by a virus/malware)?  Do you back up information regularly and store it securely?  What happens if you lose your electronic records?

Inputs
Payments
Processing
Outputs
Collections
Raw Materials/parts
Information
Supplies/suppliers
Location
Delivery Channels
Weather
People
Processes
Utilities
Legal/Regulatory
Environment
Technology
Raw Materials/parts
Information
Supplies/suppliers
Location
Delivery Channels
Weather
People
Processes
Utilities
Legal/Regulatory
Environment
Technology
Raw Materials/parts
Information
Supplies/suppliers
Location
Delivery Channels
Weather
People
Processes
Utilities
Legal/Regulatory
Environment
Technology
Raw Materials/parts
Information
Supplies/suppliers
Location
Delivery Channels
Weather
People
Processes
Utilities
Legal/Regulatory
Environment
Technology
Raw Materials/parts
Information
Supplies/suppliers
Location
Delivery Channels
Weather
People
Processes
Utilities
Legal/Regulatory
Environment
Technology

Repeat this list for “Payments” (for goods delivered), “Processing” (where you turn raw materials, components or information into products or services for customers), “Outputs” (delivering your product/service to the customer) and “Collections” (getting payment from customers).  You will change some of the headings that you search, or even delete them.   The point is to find a framework and headings that work for you and help you anticipate and plan for the unexpected.

I have spent more than half my life delivering change in different world markets from the most developed to “emerging” economies. With more than 20 years in the world financial services industry running different service, operations and lending businesses, I started my own Performance Management Consultancy to offer solutions for improving performance, productivity and risk management.  I work with individuals, small businesses, charities, quoted companies and academic institutions across the world. An international speaker, trainer, author and fund-raiser, I can be contacted by email . My website provides a full picture of my portfolio of services.  For strategic questions that you should be asking yourself, follow me at @wkm610.


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Avoid The "Founder's Trap"

One of the problems that can affect many small businesses is where the original founder (owner) of the business isn’t prepared to “let go” of the way that he/she has done things in the past.  This is known as the “Founder’s Trap” and may also apply to people who have worked with the founder since the business originally started.

The results of the inability to delegate may manifest themselves in:

Inability to Delegate:
The main reason that businesses fall into the Founder’s Trap often lies in the founder’s inability to delegate.  This usually stems from the founder’s sense that only he/she knows the “right” way of doing things in “his” or “her” business.  It may also arise from a lack of confidence that someone else’s approach can be just as valid and/or an inability/lack of time to train.  Founders tend to forget that they too once made mistakes…

Lack of Trust:
Frequently related to inability to delegate; the founder doesn’t trust staff to look after the company’s interests (especially, perhaps, in the case of his/her children).   He/she frequently overrides decisions without consultation or explanation, resulting in demoralised staff who feel they aren’t valued, respected or trusted. 

Autocracy:
The founder insists on his/her way without appreciating that he/she may have lost touch with changing customer attitudes or market conditions.  He/she may feel threatened (as well as genuinely concerned) by the potentially detrimental impact of any “new” approach. Customers become confused by the apparent lack of staff ability to commit and either insist on speaking only to the founder (preserving the latter’s autocratic approach and sense of “rightness”) or go elsewhere.

Failure to Invest:
The founder fails to understand how the business environment is changing and fails to invest or to invest sufficiently in new premises, processes, technology or skills to drive the business forward.  Staff become frustrated, customers start to leave.

Unhappy Staff/Low Staff Morale:
Staff may find themselves more in touch with customer needs and/or expectations.  The problem is, the founder won’t let them try new approaches because it’s not the way that he/she has done things so far.  Staff start to criticise the founder behind his/her back and may well start looking for other jobs.

Declining Business Levels:
As the owner/founder insists on “doing it their way”, and the problems above become more apparent, customers, business (and eventually staff) move to other suppliers who are seen as more “in touch” with their needs.

How does a founder (and/or their long-serving and trusted staff) avoid all the above when faced with new (possibly) younger managers who have been hired in for their expertise but who clearly “don’t understand the way we do things”?  The first and foremost lesson is to learn to delegate effectively.  This means knowing:

·      What to delegate;
·      To whom it should be delegated (not just the first person you see);
·      How it should be delegated (e.g. framework, approach, any limits of authority or rules to follow);
·      How to trust others;
·      Allowing others to make small mistakes – they’ll never learn, otherwise;

Essentially, they are accepting that a different way of doing things may be just as valid (if not better).

One of the reasons businesses struggle, if not fail, after the founder leaves or passes away is that the latter has failed to develop successors until it’s too late.  At this point, either the business fails, or it’s taken over by a new owner who isn’t afraid of forcing change. 



I have spent more than half my life delivering change in different world markets from the most developed to “emerging” economies. With more than 20 years in the world financial services industry running different service, operations and lending businesses, I started my own Performance Management Consultancy to offer solutions for improving performance, productivity and risk management.  I work with individuals, small businesses, charities, quoted companies and academic institutions across the world. An international speaker, trainer, author and fund-raiser, I can be contacted by email . My website provides a full picture of my portfolio of services.  For strategic questions that you should be asking yourself, follow me at @wkm610.

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