Ten Worrying Signs for Private SME-s

These are typical symptoms for an organization that is not prepared to evolve in ascending direction. It may not go downward, but it will certainly experience difficulties growing beyond its current level:

1. Succession at the top is based on criteria other than merit and competency. Family ties are the most common illustration of such compromise.

2. People nominated to formal leadership positions (titles) are not identified with the core business (i.e. Sales people promoted at the top of a manufacturing company, Lawyers driving a distribution business, Accountants leading a sales organization)

3. Executive positions are occupied by B people. The danger is not as much in their mediocrity, but in their tendency to surround themselves with C people.

4. Company website is used as a Facebook page, for self promotion of the ownership – examples are pictures taken with celebrities, or outside the relevant business context (family events, birth celebrations, etc.)

5. Too much emphasis is put on the “family controlled” character of the business. Such attribute may be liked by other small, family-run businesses, but raises suspicions in the eyes of larger, professionally managed organizations, or other supporting entities (banks, legal representation, Government offices).

6. Preoccupation with personal image is more prominent than meeting the core business objectives. Excuses are accepted, and compromises are made, when they facilitate projecting a better light, or help hiding mistakes.

7. Outside consultants become the preferred source of advice, and are working directly for the person at the top, ignoring the management.

8. Direct lines of communication are maintained between ownership and lower level employees, circumventing the hierarchy – People are solicited for personal services (taking kids to school, deliveries to home address, repairing something at the family cottage, changing car tires etc.)

9. Small, short-term objectives, perceived as associated with owner’s interest, are allowed to take precedence over established processes and principles – Statements like “Doing the right things is more important than doing things right” are deceiving when not aligned with business fundamentals. 
10. Too much attention is given to the messenger, as opposed to those contributing to the substance of the message – people will make an effort to create positive messages of non-relevant nature, will rush to be the first to deliver them, and will take undue credit.

The Inspirational Value of Analogy in Business

As a modern occupation, business management tries to establish links with other, more traditional domains of life, where acceptable conventional wisdom is available to inform the target audience. When it comes to communicating and transferring theoretical knowledge, especially for abstract or new content, nothing works better than analogies. There are two frequently referenced sources of inspiration: sports and military.

A significant portion of the business vocabulary has been imported from the world of sports. It is an easy construct, given the competitive nature of the two environments, as well as the wide resonance of such examples with most people, based on the popularity of sports.

For illustration, there are some sound similarities:

• Accomplishments are typically the result of team effort.
• Extensive practice is the mother of success (Malcolm Gladwell – Outliers – empirical findings placed the threshold at approx. 10,000 hrs – about 10 years)
• Results are measurable in increments – score in sports; Balance Score Cards, Key Performance Indicators, or simply $ in business

However, by constructing a frame of reference in the sports arena, many times we distort substantially the reality of the business context. Hence, for every comparable trait, there is a dissonant aspect. Here are some typical examples:

• Objectives
• In sports - the focus object is one ball or puck
• In business - there are multiple, simultaneous objectives
• Purpose
• The purpose of competition is to test the limits or to win a game, with some entertainment value
• Most of the time, business success is a survival mechanism
• Rules
• In sports - rules are significantly more rigid and well defined
• Due to the number of variables at play, the business playing field is a lot more complex
• Drivers for success
• The individual talent is the main ingredient of sport team’s success
• In business - too much emphasis on the individual merits may be a deterrent for collective accomplishment, while collaboration is the catalyst for success
• Ability to intervene and apply corrections
• In sports - there is a referee on the ground, who intervenes and stops the game every time there is a fault play
• In business - the real judge is the marketplace, and the reaction is delayed
• Last, but not least relevant, members of a business entity (with the exception of glorified CEO-s) are paid for their performance much less than the star athletes whose stories are used to inspire organizational behavior.

A second remarkable parallel - that got immense attention and interest in business circles - was triggered by the rediscovery of “The Art of War” – brilliantly articulated by Sun Tzu, around 500 bc. Words like strategy, tactics, targets, officers, soldiers, strengths, weaknesses and winning have received a new dimension when extrapolated in the context of a business entity. It is undeniable that this learning is valuable, primarily in times of crises and tensed circumstances. However, the business reality is not always analogous to war, and the daily routine rarely compares with the strains of a military campaign.

Without diminishing the inspirational value of the two previous frames of reference, I find increasing relevance in the world of music played in concert halls, a field that could be equally vibrant, but resorting to means of expression that are significantly different from the energy and sacrifice found in the athletic arenas or battle trenches. Therefore I began to see the nature and purpose of a functioning organization more like an orchestra, rather than as a sports team, or an army of generals and soldiers.

We don’t need to look through special lenses to find the obvious resemblance. The immediate source of information would be a simple on-line research, where Wikipedia defines it for us, in fairly adequate language:

• An orchestra is a large instrumental ensemble that contains various sections of strings, brass, woodwind, and percussion instruments.
• Orchestras are usually led by a conductor who directs the performance… unifies the interpretation across various sections, sets the tempo and shapes the sound of the ensemble.
• Members play different instruments – with remarkable skills and abilities – but the collective goal is harmony not individual prominence.

Let’s proceed now by slightly changing just few words, with their equivalent in an organizational setting.  You’ll be amazed how business-suitable this is.

• A business unit is a large resource center that contains various departments of technical, commercial, production and administrative functions.
• Business Units are usually led by a Manager who directs the activity… unifies the execution across various departments, sets the objectives and shapes the output of the ensemble.
• Members play different roles – with remarkable skills and abilities – but the collective goal is organizational success not individual prominence.

 

I can certainly use this view, and be perfectly in tune with the image it portrays for my corporate target audience. So let’s continue to play this chord and delve into the role of management in this context. There are valuable lessons to be learned from the work of a conductor, as my next blog will suggest…

Conductors and Managers - Highly Correlated Roles

Conducting is the act of directing an artistic performance, such as a musical concert, by means of communicating artistic directions to performers during a performance (directly or subliminally). * Source note: Wikipedia.

The primary responsibilities of the Conductor are to unify performers, set the tempo, execute clear preparations and beats, listen critically and shape the sound of the ensemble, and to control the interpretation and pacing of the music.

Conductors act as guides to the orchestras and/or choirs they conduct. They choose the works to be performed and study their scores to which they may make certain adjustments (e.g. regarding tempo, repetitions of sections, and so on), work out their interpretation, and relay their vision to the performers. They may also attend to organizational matters, such as scheduling rehearsals, planning a concert season, hearing auditions, and promoting their ensemble in the media.

Among most common conducting techniques:

Although there are many formal rules on how to conduct correctly, others are subjective, and a wide variety of different conducting styles exist, depending upon the training and sophistication of the conductor.

Communication is non-verbal during a performance; however in rehearsal frequent interruptions allow directions as to how the music should be played. During rehearsals, the conductor may stop the playing of a piece to request changes in the phrasing or suggest a variation in the timbre of a certain section. In amateur orchestras, the rehearsals are often stopped to draw the musicians' attentions to performance errors or transposition mistakes.

Conducting requires an understanding of the elements of musical expression (tempo, dynamics, and articulation) and the ability to communicate them effectively to an ensemble (cues). The capacity to inoculate nuances of phrasing (intensity, gradient) and expression (attitude) through gestures is also beneficial. Conducting gestures are preferably prepared beforehand by the conductor while studying the score, but may sometimes be spontaneous.

Of all conducting techniques, I consider cueing being one of the most important. It relates to anticipation, being ahead of the game, seeing around the corner and all other qualities that distinguish leaders from followers.

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Managing is the act of directing a business performance, such as a manufacturing process, by means of communicating technical directions to performers during the operations (directly or subliminally).

The primary responsibilities of the Manager are to unify subordinates, set the agenda, execute clear preparations and plans, observe critically and shape the output of the ensemble, and to control the budget and timely completion of the work.

Managers act as guides to the departments or companies they manage. They choose the opportunities to be serviced and study their requirements to which they may make certain adjustments (e.g. regarding priorities, resource allocations, and so on), work out their implementation plan, and relay their vision to the performers. They may also attend to organizational matters, such as scheduling reviews, planning a business cycle, recruitment and training, and promoting their company in the market.

Among most common managing techniques:

Although there are many empirical rules on how to manage correctly, others are subjective, and a wide variety of different managing styles exist, depending upon the training and sophistication of the manager.

Communication is less intense during the execution; however in planning and training phases frequent interactions allow directions as to how and when the work should be performed. During project reviews, the manager may stop the presentation of a plan to request changes in the process or suggest an alternative solution. In low automated work-centres, the processes are often stopped to draw the operators' attentions to performance issues or quality mistakes.

Managing requires an understanding of the elements of business nature (time, expectations, cost) and the ability to communicate them effectively to an organization (cues). The capacity to inoculate a sense of urgency (sequence, priorities) and commitment (attitude) through personal example is also beneficial. Managing actions are preferably planned beforehand by the manager while studying the scope, but may sometimes be spontaneous.

Of all managing mandates, I consider prevention being one of the most important. It relates to anticipation, being ahead of the game, seeing around the corner and all other qualities that distinguish leaders from followers.

 

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Remember, the main purpose of a musical performance is harmony, not individual prominence! The same should be valid in business!

I rest my case…