Interpersonal Business

Vol. LXXI

Dear Manager,

There is no greater crisis for any manager than his or her own unanticipated termination. Having worked for myself since college, I realize I can’t fully appreciate or understand the feelings associated with this personal crisis. I recently helped a friend and business colleague work through this process, learning a lot about his feelings, anxieties, and the path he chose to a successful and fulfilling resolution. I’d like to share my perspective on a few of the lessons he learned along the way. It’s certainly much easier to read (and write) about this topic than it is to experience it firsthand!

My friend worked for a significant regional company in the Northwest, which had been purchased a number of years ago by a similar company based in another state. At that time, Phil (not his real name) assumed the role of General Manager for his division. It became very clear over a period of years that Phil had the talent and initiative to not only handle, but to excel in this role. It was also evident to most parties that Phil’s division would clearly outperform the division being managed by ownership.

Over a period of years, ownership became uncomfortable with Phil’s division’s position of strength and his exceptional competitive advantage over the company division. O.K., I can’t be objective any longer. Clearly ownership and their inflated egos couldn’t see the forest for the trees. Instead of using Phil’s talents as a resource for their own division, they began to impose greater control in order to dim their shining star! How is it possible that some owners don’t understand a good thing when it’s sitting in their lap? I also realize I was not privy to the day-to-day operations of this company, yet normally common sense prevails.

One had to assume, from a distance, that it was simply a matter of time for this issue to come to a head. After consistently poor performance in their “company-managed” division, ownership came to the conclusion that operating costs needed to be reduced. Phil was notified that his position would be eliminated. No one would have believed this chain of events had they not seen it unfold over a period of years, as I had.

Phase I

Disbelief, anger, bitterness and, at times, devastation; Phil experienced them all. Each few days brought its own set of emotions. I believe we would all first think of family, personal commitments, and responsibilities. The first phase always seems to lead our imagination straight down the path to the poor house. Why do we always seem to think in terms of “worst case scenarios” in our most difficult financial times? I found in early conversations, though, that Phil looked for indications of hope.

This early phase also seemed to be filled with “finding blame.” Phil felt his personal image had taken a shot, as would any of you reading this. In finding blame, it seemed easier to swallow, particularly if you can find someone other than yourself able to assume this role. After a few days, and from my purely non-emotional state, I suggested that Phil shouldn’t take this action quite so personally!

Yes, without question, ownership should have, could have; in a perfect world would have, taken steps to avoid this inevitable conclusion. Unfortunately, it didn’t happen, and Phil was a casualty. Ownership eventually took actions to save the financial assets of the corporation, but it was too late for Phil. “Finding blame” serves no purpose other than wasting ones creative potential in finding a solution.

Phase II

In this scenario, I also believe there would be times of loneliness and solitude for most all of us. Society often defines us by our ability to contribute to family and self. We have all “bought in” to this mentality to some degree. I shared with Phil an honest and sincere level of confidence in his abilities and career potential. In fact, I’d often gone to Phil for advice with my own business challenges. I suggested he literally “talk to himself,” creating a sense of self-confidence in his own advice. In other words, what advice would you give to a friend under a similar set of circumstances? The value in this effort is in its ability to take the raw emotion out of the circumstances. I suggested that I would certainly rely on his advice if I found myself in similar circumstances. It was time that he do the same. What would he tell me to do? Listen to your own words then follow “their truth.” Once the personal emotions are put in their proper perspective, we can proceed both objectively and effectively.

Phase III

This phase comes with acceptance of one’s own reality. With acceptance comes the very first stage of rebuilding ones confidence. This is also the stage in which I believe we are most vulnerable. In the search for confidence, it’s easy to accept alternatives that aren’t in our long-term best interests. Similar to personal relationships, we are vulnerable to the potential “rebound.” Some early indications of new opportunities came Phil’s way within the first couple of weeks. One day, Phil would be elated, confident, and relieved at his good fortune. Days later, optimism crumbled to disappointment when the opportunity wasn’t nearly what was understood at first blush. This roller coaster had seemed to take on a life of its own.

We discussed staying on task. Each day’s agenda would be directed toward his efforts to develop fact on which to base future judgments. While there was initial relief in finding potential opportunities, he also had to look well beyond the surface of each of these opportunities. His considerable skills would be in demand, and there would be many who would like to “take away the pain” and acquire his services at well below market value. The relief in finding a “new home” was certainly not nearly worth the price of selling himself short, or compromising his family’s potential.

I suggested this was finally an opportunity for Phil to take the time to chart his future, as compared to allowing fate to simply push him around. It was time to take back control. Rather than jumping at an opportunity, Phil clearly needed to take the time to make perhaps his last and most important professional career judgments. All options, all scenarios; all potential possibilities should now be objectively reviewed. It’s clearly better to make an informed decision from an inventory of ten choices than it is from an inventory of one!

Phase IV

As the opportunities continued to flow in, I found great pleasure in seeing Phil’s excitement and anticipation grow. This stage finally allowed Phil to realize that, in fact, this time of change might have been the proverbial “blessing in disguise.” Phil hadn’t been completely happy with his former set of circumstances, and had actually considered leaving prior to their decision. The key difference was the fact that it occurred on their timetable rather than his.

Phil has actually become grateful for what he calls the “kick in the rear.” He is on an anticipated fast track as he builds his own marketing representative company serving a number of manufacturers in his former industry. This decision seems to be a perfect fit, as it allows him to draw on prior experiences and contacts that will only serve to enhance this decision. These are uncharted waters for Phil, but as an objective observer, I have no doubt that he will succeed.

As I suggested earlier, I fortunately (or perhaps unfortunately) have never personally endured these circumstances first hand. I believe its greatest lesson is in moving beyond the emotions of the moment. In consulting your own inner voice, you might even find a new best friend in the process.

Personal Regards,

Keenan

INTERPERSONAL© is published by INTERPERSONALBIZ.COM, Keenan Longcor, Editor, ©2010. Duplication of this publication is permitted for both personal and business use. Excerpts may only be quoted with acknowledgment of INTERPERSONAL/INTERPERSONALBIZ.ORG as the source. For re-publication rights, please contact the editor at KEENAN@INTERPERSONALBIZ.COM

Vol. LXXI

Dear Manager,

As managers, we have little ability to impact or exercise control over competitors in our product category. We can certainly anticipate, respond to, out-maneuver and stay a step ahead of … but the ability to control their efforts simply doesn’t exist in the free world. We can only impact areas in which we have some degree of control: our staff, our sales partners, our customers, and the actual consumer. These are our true competitors; these are the areas of significant opportunity.

This month I would like to analyze this group by shedding more light on their potential. We must look to them not only as allies, but also as the competition, friendly as they might be. I believe we would all agree that competition is good for us. It is truly what makes the American form of business so engaging. Competition has made us all better professionals; it is the foundation for the entrepreneurial spirit as we know it. If truth be told, we revel in competition on the winning side, as compared to the alternative. Having now established this new breed of competitors, let’s review their agendas and the levels of control we have in this collaborative destiny.

Your Management Staff (greatest control)

Their competitive nature suggests you are competing for their intellectual potential. As managers, it is critical that we surround ourselves with the very best lieutenants available in the marketplace. A strong manager is one who knows his own weaknesses and aligns himself/herself with those who can best shore up shortcomings. A competitive environment must exist to meet our highest collective potential. We want those who will challenge the process, those who will create a competitive environment in determining the supreme conclusion. Anything less and we are surrounded by little competition, limited intellectual potential, and too much of a single voice. Management is a democracy, not a dictatorship.

One of the keys to managing this group is in creating an environment of loose controls, an independent identity, and significant personal responsibility. While this is the group where management may hold the potential for greatest control, this is also the group who essentially should require the least. This group by sheer proximity best assimilates your culture, your objectives, and your single mission. There should be no need to overstate your need for control in this arena. Your staff certainly comprehends where the final decisions are being made.

Your greatest challenge will be in creating an “all hands on deck” approach. There is nothing worse than a key member of management sending mixed signals with regards to product introduction, policies, or their collective agenda. The creative process must be an open forum, one that respects the input and conclusions of all participants, because once the missile has been launched, there can be no turning back. Each player must be in sync for the target, any target, to be reached. Post launch contention is a symptom of dysfunctional management.

Sales Partners (limited control)

Their competitive nature suggests you are competing for their time. Naturally, you are looking for individuals who will position and sell your agenda or products, often with little or no personal input or ownership on their part. These folks are generally an independent lot who have been asked to be your soldiers, to simply buy in and “blindly” promote your objectives. With most professional sales partners, strategic business evaluations are being made every day. They have the ability and street savvy to assess your initiative expeditiously. If you have indeed missed the mark, they are not about to hang around long enough to participate in your failure.

This is the nature and system of sales. Any manager who suggests that they would survive in any other model or sales agenda is not living in the real world. In creating an environment for success, management must provide its soldiers with the tools, and all possible weapons, for success. Poorly conceived introductions, poorly prepared execution, let alone bad timing, will send your soldiers into mutiny. This is why we, as managers, are effectively competing for their time. When that lid to their trunk opens up, a decision is made multiple times each and every day as to where their allegiances, and most lethal ammunition, lies.

Your Retail Customers (much less control)

Their competitive nature suggests you are competing for their space. While loyalties and business relationships continue to exist today, when it comes down to running a business in the black or in the red, our retailers should never be considered colorblind. Those who are will eventually fail, regardless of our efforts or their loyalties. We must continually and consistently sustain performance in order to compete for their attention and space for our products.

If it’s not price, then it’s surely innovation and design that will capture their attention. Our retail customers are purely a “survival of the fittest” kind of crowd. Marketing of consumer products has created a whole new standard in recent years. Between the sale of products at cost clubs, big box retailers in many new categories, and on the Internet, retail is no place for the faint of heart. Our introductions must show empathy for this changing environment, and must be focused and targeted more than at any other time in the past. All too often, products with significant consumer potential never cut the mustard due to poor execution and a lackluster introduction into their established market. Unless shelf space is earned, we will simply never know just how “consumer worthy” our product’s potential truly is.

The Consumer (little or no control)

Their competitive nature suggests you are either competing for their convenience … or their spirit. While consumers are the group over which you hold the least amount of control, you still have more power over them than you do over your category competitors. There is about as much chance in predicting the consumers’ desires as there is in handicapping the ponies on a Saturday afternoon. If the ever-changing wishes and whims of the consumer could be accurately defined, none of us would have a job. Heck, they don’t even know what they want, so how are we supposed to position the target?

This is where it gets very interesting. When you think about it,
management, sales partners, and retailers are all banking on their own abilities to fully understand exactly what the consumer is willing to purchase, en mass. There are certainly indications, and educated guesses a plenty, but no one ever knows for certain. Over the years, focus groups, clinical trials, test marketing, and surveys have reduced the risk in the process. Yet, as often as not, by the time the product has hit the shelf, the fickle nature of consumers’ needs and desires has altered.

If price is not your position of strength in the marketplace, you must capture the interests of your consumer with their hearts. Why else would millions of people pay $7.00 for a piece of paper with a few words scribbled on it, and mail it for Mothers Day? There are certainly very creative and capable individuals who are gifted in this arena. When you find a good one, hold on very tight.

Management Staff, Sales Partners, Retail Customers, the Consumer; these are the competitors that deserve most of management’s attention, for they are the competitors where you may exercise at least some control in your destiny.

Personal Regards,

Keenan

INTERPERSONAL© is published by INTERPERSONALBIZ.COM, Keenan Longcor, Editor, ©2010. Duplication of this publication is permitted for both personal and business use. Excerpts may only be quoted with acknowledgment of INTERPERSONAL/INTERPERSONALBIZ.ORG as the source. For re-publication rights, please contact the editor at KEENAN@INTERPERSONALBIZ.COM

Vol. LXX

Dear Manager,

I believe we have the tendency to view our competition in very definite terms, predominantly by specific product category. We keep an eye on it; we analyze and try to anticipate it, yet we always come back to the distinct reality that we hold little direct impact over these players’ efforts relating to our success or failure. I would suggest that this type of competitor, while certainly worth our attention, pales in comparison to the balance of the competition we must confront as a manager.

I have seen more companies fail over the past thirty years for lacking the understanding of this single factor than for any other perceptible reason. I would like to review the histories of two companies with whom I enjoyed significant and long-term relationships. Each company was held in very high regard in their industry; each of their annual sales approached thirty to fifty million dollars in their days of glory. For varied reasons, my relationships with these companies were cut short. In hindsight, this may have been good fortune, as each is no longer in business in their original form. Yet, even to this day I feel a sense of disappointment and frustration; a “How could they have messed this up?!” perspective.

Study #1

I began with Company #1 in its infancy. Through innovation, design, and strong sales management, they single handedly drove, expanded, and breathed exciting new life into an established product category. In the early and mid 80’s this company clearly, unequivocally, seemingly insurmountably, owned their strategic product category. This was a company that enjoyed sixty to seventy percent of the market share! Creative business judgments, market timing, and a bit of good fortune, smiled on this company simultaneously. I had never seen anything like it, and I probably never will.

The 90’s brought new and aggressive category competition but, more significantly, it brought a new management team to the company. The historical success of this company was so profound that new management took the potential of risk for granted. As the 90’s passed, the management team continued to rest on the laurels of the glory days of the 80’s. It was honestly heartbreaking to see a company that had formerly been so in tune with their market, show signs of losing its corporate sense of awareness.

When their market share began to slide, initiatives were implemented to revitalize their sagging sales. Unfortunately, these directives compromised the vested relationships with their customers, sales partners, and organizational image: their true “brand” in the marketplace. This company ultimately created an adversarial role with their sales teams that only served to alienate and perpetuate their downward spiral. I can best describe this attitude as one of “cultural arrogance.”

Once reality finally struck, they had lost all position of strength in the marketplace and the support of their valuable sales partnerships. It was simply a matter of time before all of their earlier tangible and intangible assets had been lost. Sadly, this former high flier filed for bankruptcy.

Study # 2

Similar to the first study, Company #2 was enjoying a near thirty-year history of consistent growth. In critical areas, this is a mirror image of our first study. As is most always true, innovation and design also put this company at the forefront of their category. The 90’s rewarded these efforts, establishing this company as one that could clearly execute and sustain a timely theme and trend. It was magic.

A licensing relationship opportunity also began to develop and evolve for this company. Before long, the license drove the category, a classic example of the tail wagging the dog. An explosion of growth followed that I have very rarely seen in this industry. Within two short years, this single theme accounted for over fifty percent of their sales volume. Just as the company saw early indications that the trend was beginning to decline, the company was sold.

New ownership, blinded by the theme’s record-high sales, continued to count on this trend to insure the company’s future value. Their product and marketing departments failed to meet prior standards of marketing genius and, within a year, the trend had passed and sales had fallen significantly.

Management panicked by hiring their own in-house sales force. Certainly greater control over their sales efforts would stem the tide and compensate for poor execution by management. Heavy investment of depleting resources into regional sales management and untested field sales personnel severely escalated training and sales operating costs. Within two years, this company was on the verge of taking its final breath.

What can be learned by the rise and fall of these two companies?

 Never take current levels of success for granted. “One hit wonders” are a dime a dozen in most industries.

 We are only as good as tomorrow’s best selling product and innovation in the marketplace. The only true value in today’s success is in its financial potential to recreate itself, and in the development of its own second generation.

 Establish sustaining and strong levels of communication between your marketing departments, customers, and field sales personnel. While their participation may have been limited at the front end, their guidance will be invaluable at the back end.

 Maintain a balance of control and resources to insure that if the market shifts, your risk is both defined and survivable.

 Accept full accountability that only sustainable product innovation holds the lifeline to future success. Professional sales partners can only enhance the sale of a strong product presentation. They cannot compensate for poor execution.

 In time of crisis, create an agenda that takes full advantage of your current wholesale and retail partnerships. Their clear interests are vested on your behalf, now is the time to call in the IOUs.

 Difficult times are the true test of management. Insure that you have your best “management foot” forward when it’s all on the line. As these studies suggest, ownership’s life and death is truly in their hands.

 If you are confident enough to risk your future on a single trend, then you had better be equally confident in your ability to identify and grab that next tiger by the tail.

We began with the topic of competition. While market conditions and management decisions played a significant role in the outcome of these two companies, neither of them was clearly taken out by significant category competition. They had but one competitor: themselves. Are we as managers so preoccupied with the evil outside competitor that we are ignoring the priorities within our control? In many cases, outside competition is a distraction acting as a placebo. The true poison pill is more often than not sitting right on our desk.

Personal Regards,

Keenan

INTERPERSONAL© is published by INTERPERSONALBIZ.COM, Keenan Longcor, Editor, ©2010. Duplication of this publication is permitted for both personal and business use. Excerpts may only be quoted with acknowledgment of INTERPERSONAL/INTERPERSONALBIZ.ORG as the source. For re-publication rights, please contact the editor at KEENAN@INTERPERSONALBIZ.COM

Vol. LXIX

Dear Manager,

It can be easy to presume our most favorable and idealistic expectations into a false sense of reality. This is the nature of business (not to mention the stock market), and I would consider myself a card-carrying member of this group. While I’m not suggesting we alter this confident approach to our business future, I am suggesting that our personal history books can teach us much of what we need to know in order to proceed effectively.

YOUR EVOLUTION AS A MANAGER

We all evolve in our role as a manager. The question becomes: are we evolving at a rate similar to that of our company? In other words, are we ahead of or behind our company’s curve? If we’ve surrounded ourselves with top-notch assistants, is our management role challenging them and their expertise, or are they merely floating ahead while we lag behind their level of professional and personal growth? There’s nothing more counter productive than having a manager at the top that is really an anchor to their own team. I’ve seen it happen.

From time to time, all management falls just behind the curve – I know I have! We can get so caught up in the day-to-day operations of our companies that these much higher objectives can become blurred. There were many instances where, while “I was very busy,” I was also wrapped up in areas that should have been delegated, probably years ago.

WHAT WAS YOUR ROLE FIVE YEARS AGO?

If you were to go into rewind, what would your day-to-day routines have been five years ago? In these same five years, your company is likely to be 50% to 100% larger than it was at the time. Has your role, expertise and economic value evolved by an equal or greater percentage? Maintaining a creative and exciting energy as a manager is essential to ones legacy and success in management. In fact, it’s one of the most important aspects and essential traits of good management!

LEARNING vs. LIVING IN THE PAST

Think back on your own most rewarding and valuable times in your business career. It’s very possible that in this review, you would not pick your present circumstances. In fact, I’ll bet it would be much earlier in your career. The memory could be of when you made those very first steps in your business career. You clearly realized how little knowledge you had; there was only one way to find it and that was to experience it.

For many of us these were the most rewarding times. These were the days when we paid our dues, got our hands dirty, and even surprised others and ourselves with our net results. These were the days when we knew much less about failure, and our perceived and legitimate responsibilities were on a much smaller scale than what we have created in today’s climate. Yes, these were much simpler times; they may have been the best of times.

ON REFLECTION …

Could it be time to turn back the clock? Could it be time to recreate this sense of unbridled excitement for yourself and, in turn, for your organization? What’s missing today that pulled your trigger in days gone by?

As managers, our role and value to our organization evolves in the form and functions that best meet the need at any given time. Often this evolution is determined by others, and for reasons and needs outside of our own best interests. Yes, the path of our personal history has clearly led to our current reality. Is this reality meeting your current needs in addition to others, or are these prior decisions now controlling you? It could very well be time to “take back” that which was taken away from you.

GET YOUR HANDS DIRTY (again)

There is no greater satisfaction than getting your hands dirty both individually and with the troops. Management can easily slip into the routine of “what’s expected” of management “types.” While critical thinking is important, all too often there simply isn’t that much to think critically about.

By now, haven’t we surrounded ourselves with capable individuals to take care of most of this “critical stuff?” If this is not the case, do yourself a favor and take care of this first. Now begin to schedule appointments that take you back to those areas that nourish and fulfill your personal and organizational objectives.

I often hear of individuals who haven’t taken a personal vacation for years. They say they simply can’t make the time. Who’s in charge of their schedule? All that’s required is to put it on the calendar and stick to it, period. Use this similar method in meeting your professional objectives, period.

A LESSON LEARNED

Some of the greatest impact I provided my organization was during times of individual sales training (sometimes I trained them, sometimes they trained me!), or simply working with my associates in the field. Where better to learn about the pulse and heart of your organization? Where better to make a significant impact, day in and day out, within ones organization? These were my happiest and most fulfilling days. Looking back, these days should have occurred much more often, leaving the day-to-day operations to my very capable staff. It should have become a much more significant aspect of my management routine.

There will still be those who’ve convinced themselves that the temple will collapse in their absence. There are individuals, trained (by you), to fully anticipate seeing your face each and every day. You may even have established a reporting and justification system as to your ongoing “whereabouts.” Yes, you may have to retrain others as well as yourself! A perfect example comes with the sale of my own organization. They’re doing quite well, thank you very much!

I can’t help but wonder what greater impact and personal satisfaction may have been available for me in a bit different model? How much of our “busy work” would be taken care of, or simply take care of itself, in our absence? NEVER lose your availability, but being just a little less available can be a very good thing. Less can be more. Now, you just have to fight this with a company-issued cell phone on your hip!

Personal Regards,

Keenan

INTERPERSONAL© is published by INTERPERSONALBIZ.COM, Keenan Longcor, Editor, ©2010. Duplication of this publication is permitted for both personal and business use. Excerpts may only be quoted with acknowledgment of INTERPERSONAL/INTERPERSONALBIZ.ORG as the source. For re-publication rights, please contact the editor at KEENAN@INTERPERSONALBIZ.COM