Leading With Self-Control

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"Let your breath be the first word."

—Jefferson Fisher

What contributes to CEO failure? 

"How do CEOs blow it? More than any other way by failure to put the right people in the right jobs—and the related failure to fix people problems in time," says Ram Charan and Geoffrey Colvin in a timeless FORTUNE magazine article published in June 1999. 

"Specifically, failed CEOs are often unable to deal with a few key subordinates whose sustained poor performance deeply harms the company. Everyone around the leader knows about these problems, but their opinions are ignored," the writers added. 

CEOs know there's a problem, but they suppress it. 

The article concludes that the failure is one of emotional strength.

Defining self-control

Self-control plays three vital roles: thinking before acting, controlling disruptive emotions and impulses, and saying "no" to temptation. However important this characteristic is, it's often overlooked when hiring. 

Dr. Christopher Barnes from the University of Washington reports that self-control varies over time within the same person. 

The studies point in these directions:

• It's a time-limited response. Too much is used in one place, leaving less to be used in another. 
• Think of it as a finite cognitive resource. Exerting self-control can negatively affect future self-control if not replenished.
• As self-control depletes, one is more likely to succumb to temptation. Even good people can have weak moments.
• Different types of self-control tap into the same pool of limited resources.

Temperament (personality) and self-control are closely related but not the same. Temperament is innate and influenced by biological factors. Self-control, learned over time, is the key to managing one's temperament effectively. 

Desirable habits

Embracing self-control has many rewards, including better people decisions.

A self-regulated condition means eating healthy, improving job performance, and forming higher-quality friendships. Inspiring and intellectually challenging associates rather than abusing and micro-managing them is a plus.

Without self-control, we revert to impulsive decision-making, emotional outbursts, and difficulty managing stress. The literature cautions against sending a text or email or calling someone when angry, as words written or spoken can never be returned. 

Judicious restraint using the 24-hour reply rule is a teachable moment, as others pay more attention to what we do than what we say.

A reflective leader

Psychologists define reflection as evaluating our thoughts, behaviors, and motivations. This process is about self-awareness, knowing who we are, and clarifying the boundaries of our lives. Furthermore, this prearranged time helps us assess the quality of our circumstances. 

In the age of noise, leaders need to be alone and offline. As the playwright Jon Fosse declares, "The silence speaks."

Suppose we don't periodically reflect on what matters to us. In that case, we can be misdirected by outdated thinking. Or, confused by a disorienting culture whose moral fabric is rated poor by 54 percent of U.S. adults, according to a 2024 Gallup Poll. In that same survey, 83 percent of respondents said that moral values are worsening.  

"Leaders have to get outside the emotional climate of the day," writes Edwin Friedman in A Failure of Nerve—Leadership in the Age of the Quick Fix. "Vision is generally considered a cerebral event, but the ability to see things differently is an emotional phenomenon," he notes in his last book.  

Widely respected, Friedman, a rabbi turned consultant, makes clear that when attempting to engineer an organizational renaissance, those at the top have to muster the inner strength to overcome resistance and rejection, especially from those within who may have lost their will and way.

The gift of sleep

If energy is the fuel for self-control, how do we tank or power up?

Certainly, diet, exercise, and fresh air make a big difference. Experiencing new environments and including individuals of strong character in our circle of friends helps greatly. Continuous learning renews our minds. Don't forget the encouragement and support from families. 

Nevertheless, a good night's rest is the greatest daily power source for regaining emotional strength and self-control, which can positively influence one's temperament. After all, the wisdom of ruling our spirit is a time-honored instruction. 

Mayo Clinic recommends that adults sleep at least seven hours each night. However, the quality of sleep and routine matter more than the number of hours. REM (Rapid Eye Movement) and deep sleep are required to improve cognitive function and memory, reduce stress, and boost the immune system. Sleep also has a physical healing quality.

Sleep psychologist Dr. Michelle Drerup suggests that the bedroom temperature should be 60 to 67 degrees (15-19 C). "It should be cool, dark, and quiet to enhance sleep," she notes. 

Can you ever make up for lost sleep?

"We don't know," says Dr. David Gozal of the University of Chicago. "If a person goes without sleep for just one night and tries to replace that lost sleep—to repay that sleep debt in just a day or two, most likely they will be able to regain normal function. But getting extra sleep does not immediately restore all systems," Dr. Gozal quickly adds. 

Buffer days

The late Bob Buford, co-founder of Leadership Network with Fred Smith, liked introducing something he had been thinking about when opening the Network's conferences. One idea that sticks in my mind is inserting "buffer days" into busy schedules—perhaps one or two days to rest—for you and your colleagues, too.

Back-to-back meetings are sometimes a reality. Red-eye flights may be necessary, and overseas travel can cause jet lag. However, an intermittent buffer day can provide emotional strength, offsetting the physical and mental strain of demanding responsibilities.  

Author Alan Cohen sums it up this way: "There is virtue in work, and there is virtue in rest. Use both and overlook neither."

Sources: Self-control: A vital behavior for leaders everywhere, Sarah Mangia, The Ohio State University, September 15, 2020; Leadership Takes Self-Control. Here's What We Know About It, Kai Chi Yam, Hulwen Lian, D. Lance Ferris, and Douglas Brown, Harvard Business Review, June 5, 2017; Sleep Deprived People Are More Likely to Cheat, Christopher M. Barnes, Harvard Business Review, May 31, 2013; The Skill that Matters Most, Tony Schwartz, Harvard Business Review, September 13, 2011; A Neglected But Essential Leadership Trait--Why Self-Control Really Matters, Prudy Gouirguecheon, Forbes, April 3, 2018. 

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A Close Look At Skechers Successful Strategy

  

© Skechers

"Opportunities multiply as they are seized." 

--Sun Tzu

Howie Long is an NFL All-Pro defensive end and Hall of Famer who played 13 seasons for the Los Angeles and Oakland Raiders. Long is now a studio analyst for Fox Network's NFL coverage. 

While preparing to write the February Strategist Post, Long appeared in a larger-than-life display advertisement that took up one-third of page 5 in Section 1 of a recent edition of the Orlando Sentinel newspaper. 

In the ad, he wears a white T-shirt, light grey khaki pants, and a navy letterman's jacket. The 6' 5" former tight end and defensive lineman from Villanova University holds a college football (the one with stripes) in both hands and wears dark grey, hands-free, slip-in Skechers shoes (similar in style to the one above). 

The copy reads, "No bending over. No touching shoes. Just step in and go." 

Howie Long's endorsement and those of other football stars, including Joe Montana, golfer Brooke Henderson, and entertainment figures like Martha Stewart, Willie Nelson, and Snoop Dog, have helped make Skechers--a Fortune 500© company with global sales of $9 billion in 2024--the third-best-selling shoe behind Nike and Adidas. 

Skechers backstory

How did a footwear brand based in Manhattan Beach, California, come to offer over 900 shoe styles and have 5,000 stores in 120 countries without generating much media attention? 

The correct answer is slowly.

In 1983, Skechers founder Robert Greenberg and his son, Michael, started L.A. Gear (with endorsements from Wayne Gretzky and Kareem-Abduhl-Jabbar) after an unsuccessful attempt to sell roller skates. Skechers emerged after the Greenbergs left L.A. Gear in 1992 over a dispute with the board of directors. The original plan was to distribute Dr. Martens's shoes, but that arrangement left the Greenbergs with little say about product development and quality control. 

They really wanted their own shoe--and control over its fate in their hands.

The strategic concept

A careful reading of Skechers' history shows that the Greenbergs, with Robert, now 84, as chair and Michael as president, learned from their decade-long experiences that to be successful, one must concentrate on a few things and do them well. 

Product innovation (comfort technology) is the driving force behind style, quality, and affordability. Together, they create a brand identity that must be carefully guarded, and that's what the Greenbergs do: guard the brand. 

Packaging the strategic idea is one thing. Executing is another. 

Marketing plays an important role with generous ad spaces, glossy magazines, large billboards, and television advertisements featuring celebrities wearing Skechers shoes. 

Despite the more contemporary ad campaigns, Skechers still has an image problem, reinforced by ads like the one with Howie Long. They're associated with selling "old people's shoes." (I have a pair of Skechers and their slip-in golf shoes, which is an unpaid endorsement.) 

Product diversification continues across new markets. Skechers is expanding into team sports like soccer and basketball. 

Harry Kane of England's national soccer team has a lifetime endorsement deal for Skechers' soccer cleats. The NBA's Joel Embiid of the Philadelphia 76ers and Julius Randle of the New York Nicks endorse basketball shoes. 

Filling in the holes

An important lesson about Greenberg's achievement is that they found market gaps--young professional athletes, women, families with children, new lifestyles, and, yes, older adults--and are filling them in. Skechers now offers a pickleball shoe made of Goodyear rubber that retails for $115.

What's common to all products? The calculated idea that comfort, style, quality, and affordability are a winning combination. 

Skechers got a boost from Nike*, which closed its stores after the pandemic to focus on wholesaling and direct-to-consumer sales. Nike's price points don't often go below $100, while Skechers offers a variety of styles for less. Their GORUN shoe sells for $45 at Walmart. Children's shoes are around $30 on Amazon, which appeals to price-conscious parents.

In addition to being helped by other shoe companies that stick to their specialties, such as Hoka, which markets to hardcore runners, Skechers is benefiting from cultural changes: people wearing sneakers and sports apparel for non-sports occasions, like the office and social occasions. 

Sometimes, a strategy needs a break from the competition or marketplace to succeed.

An original work

Robert and Michael Greenberg have built a remarkable business, but they would be the first to say they haven't done it alone. Any creative idea pursuing that much growth requires others to achieve its aims. Widespread knowledge among associates of how Skechers differs and why is fundamental to its financial fortune. 

No idea or business constructed by human powers endures forever in its original form. Maintaining product innovation as Skechers' heart and soul while profitably seizing the right opportunities is an investment in its future but not a guarantee.

*Nike is suing Skechers for design infringement. Skechers said it will "vigorously" defend the 2023 patent suit. 

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How Organizations Really Work

(C) Used with permission.

"The sinkhole of change is communication and motivation. It's where change projects go to die."

--Nancy Rothbard, Ph.D.

Bayer, the German conglomerate that invented aspirin in its earliest days, is trying to reinvent itself. 

CEO Bill Anderson is one year into restructuring the company's pharma commercial team in response to a crushing €34.5 billion debt, the litigation-intensive $63 billion acquisition of Monsanto, the parent company of the Roundup weed killer, and the upcoming loss of exclusivity for the blood-clot medication Xarelto. 

Bayer, also home to Flinstone vitamins and Alka-Seltzer, eliminated managers and annual budgets, which Anderson calls the "belly of the beast of bureaucracy," and asked staff to organize themselves into 90-day "sprints" in self-directed teams. 

"Dynamic Shared Ownership" (DSO) proposes reducing bureaucracy, accelerating decision-making, bringing employees and customers closer together, improving overall operational performance, and radically realigning Bayer's internal culture. 

"The beauty of this system is we're not perfecting it before we start," says Christine Roth, head of global commercialization at Bayer's pharmaceutical division. "We're getting to a good place where we can start to experiment and go. And we will learn to adjust as we go," Roth emphasized.

The DSO plan works and becomes a Harvard Case Study on transformation or falls into the heavily populated category of failed corporate change, where nearly 70 percent end up. Or something in between.

Under Bayer's circumstances, doing nothing is not an option.

The role of culture

Dr. James O'Toole, author of Leading Change and former program director at The Aspen Institute, defines culture as a system of beliefs and actions that characterizes a particular group. He includes shared ideas, customs, assumptions, expectations, philosophy, traditions, mores, and values in that definition.

Historically, grasping corporate culture resulted from in-person socialization, close observations of behavior, and conversations with peers and supervisors. Informal mentoring played a big role in the assimilation process. 

Can what was once learned on-site be interpreted virtually?

The Iceberg graphic shows that the more heavily promoted values at the top, such as vision, strategy, and goals, may have less influence than originally thought. Stories, unwritten rules, and traditions at the bottom may impact culture more. Will the approximately 90 percent unseen volume of the iceberg retain its influence in hybrid work cultures? 

Change is hard but possible

What have we learned in a half-century of studying organizational dynamics? The critical importance of everyday relationships. That's a quality you can't do without. Credibility doesn't show up at the last minute when change needs to happen, or a crisis occurs. It's there, or it's not.

There's a huge difference between nurtured and neglected bureaucracies. The former are healthy and adaptive, while the latter struggle to achieve common goals. 

What drives sweeping change? 

An existential threat, such as debt at Bayer or catastrophic accidents involving Boeing planes in 2018 and 2019, killing 346 passengers and crew that grounded the 737 Max jets.  

"Top management teams that are diverse in time orientation, tenure, and experience increase the probability of strategic change," says Success with Change author Patricia McLagan.

Anticipating something new

There are three pre-conditions for effective change:

The first is trust. 

Dr O'Toole writes: "Trust is created by leaders' manifest respect for their followers." 

"People have to believe in you and what you are trying to do," says Paul Brown with FTI Consulting. 

Therefore, mutual trust is necessary.

Secondly, leadership has to gauge the capacity to change. Restructurings or turnarounds can't happen without building on existing capacity. You bring change by working with the system; you can't pretend the system doesn't exist. 

Finally, anticipate people's concerns. They are not only predictable but also addressable. Sometimes, resistance identifies alternative options and produces better results. Associates don't actually resist change; they simply resist being controlled.

Improving the chances of success

Make a case for change: Explain your motivations to employees repeatedly and in detail. Take the time to build a compelling case. Allow for questions and feedback. Announcing change isn't the same as implementing it. Show everyone where the enterprise is, where it should go next, and how to get there by working collaboratively. A realistic timeline helps. 

Involve associates from the beginning. Credit them for being smart and include them in every stage. People don't want to be sold on change. They want to understand it and participate in making it happen. Deliberately engage their hearts and minds. Let them influence its nature and direction. Those directly affected by these decisions need time to make the required transitions. Implementation happens here. 

Maintain integrity throughout the process. Proposals and the leaders who sponsor them aren't perfect. Acknowledging this upfront is an act of humility, not weakness. If leadership communicates probabilities instead of certainty, much can be said. Updating formal and informal channels with the latest information is better than rumor-filled vacuums. Progress, more than success, is the measuring stick of change.

Remember that cultural icebergs are mainly below the surface.

Sources:  Controlling the Perils of Change, Mary Lee Olson, T + D Magazine, 2008; The Irrational Side of Management, McKinsey Quarterly, 2013; Partners In Change, Paul B. Brown, Inc., 2001; Leading Change, James O'Toole; Jossey-Bass, 1995, Cracking the Code of Change, Nitin Nohria and Michael Beer, Harvard Business Review, 2000; Success with Change, Patricia McLagan, T +D Magazine, 2002-2003; The Change Monster, Jeanie Daniel Duck, Crown, 2002; Communicating Change, TJ Larkin and Sandra Larkin, McGraw-Hill 1994. 

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Why Averages Are Misleading

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"The average investor buys high and sells low."

--Ray Dalio

The chairman of Vector Economics, Sam Savage, shares the story of a statistician who drowns while fording a river that he calculates is, on average, three feet deep. "If he were alive to tell the tale, he would expound on the 'flaw of averages,' which simply states that plans based on assumptions about average conditions usually go wrong." 

Mr. Savage, who also lectures at Stanford and Cambridge on risk modeling, says, "This unseen flaw shows up everywhere, distorting accounts, undermining forecasts, and dooming well-considered projects to disappointing results."

A problem with averages

A former client, Brad Hewitt, then CEO of Minneapolis-based Thrivent, first brought the problem of averages to our attention. He recently explained it this way:

"I was a math (statistics) major in college. One part of that coursework was a section on how to tell if someone was lying using statistics. It was eye-opening, and averages were among the best ways to mislead. A professor would say, 'If you put one foot in ice cold water and the other foot in boiling water on average, it would be just right.' 

"Averages  (means, modes, arithmetic, etc) are valuable, but one must look carefully at what they say. Unfortunately, people often have a point of view, and statistics are simply a way to prove their point, not help them gain insight into data," Hewitt concluded.

What specifically should concern us about averages?

The problem with averages is that they can easily obscure the reality of the situation. 

"While averages can provide a simple summary of complex data, they can also distort reality, hiding important variations and nuances with the data," writes Reagan Pannell, CEO of Leanscape. "Averages can be useful for providing a quick snapshot, but they mustn't be the sole metric relied upon for decision-making or understanding a situation," he adds. 

Some examples

Think of baseball batting averages, which Sabermetrics considers a weak performance measure. On-base plus Slugging (OPS) may be a better way to judge a batter's value to their team, but do fans know what that stat means? Do they even care?

Consumers rely on average annual rainfall amounts from their local meteorologists (54 inches in Florida) because they are simple to compute and understand. Yet those averages are only sometimes reliable, failing to account for inconsistent patterns within a year (like hurricane or dry seasons).

Average is a mathematical term, and research suggests it should be so confined. You can't average people (only numbers of people) or concepts or opinions. One person suggested using the word "typical" as an alternative. 

Does that mean the average person is a myth?

This is likely since that definition relies on a single 'average' value and can ignore individual differences and complexities. 

Beware these conditions

Circumstances to avoid:

• Using averages to compare different groups. 
• Applying group behavior to individuals.
• Allowing extreme results to influence averages.
• Fixating on a single number--which is an oversimplified view of reality.  

One way around these pitfalls is to consider probability distributions instead of single numbers. A histogram is a simple way to view a distribution. (linkedin.com/pulse/deceptive-art-using-averages-unveiling-statistical-tricks)

What can we learn?

Consultant Pennell believes we should look beyond averages.

"Consider data distribution, the outliers, and other measures like median and mean. Understanding the range and variance can also provide insights into the spread and inconsistency of data."

Pennell balances the scale:

1. Averages are not inherently bad. They do offer a quick snapshot of data and simplify complex datasets.

2. Use averages as a starting point, but explore other statistical measures.

3. Beware of outliers, as they can significantly skew your average and create a misleading data representation.

4. Tools like AI can provide valuable insights beyond the average, though you should never remove the human mind when analyzing data.

Coin of the realm

Sam Savage, whom we quoted initially, is also the author of The Flaw of Averages. Instead of saying, "Give me a number for my report," he believes every executive should say, "Give me a distribution for my simulation."

If followed, Savage's advice could improve planning and outcomes and establish a more credible standard of leadership. 

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Keeping Middle-Class Philanthropy Alive

(C) MYRA

"The charity that is trifle to us can be precious to others." 

 —Homer

Who are the most generous financial givers? 

The short answer is individuals. 

Giving USA's Annual Report on charitable contributions, published in June of this year (for 2023), shows that of the $557.16 billion given, 67 percent, or $374.40 billion, came from individuals, an increase of 1.9 percent over 2022. 

Next are foundations, which gave 19 percent, or $103.53 billion, up 1.7 percent from the previous year. Bequests, at 8 percent, or 42.68 billion, gained 4.8 percent, and finally, corporations, with 7 percent, or $36.55 billion, increased by 3.0 percent over 2022. 

These are current dollars as overall inflation-adjusted giving declined 2.1 percent for the year. Individual giving as a share of disposable income was only 1.9 percent—close to the all-time low of 1.7 percent in 2022. 

The top three recipients were religion*, which received $145.81 billion; human services, $88.84 billion; and education, $87.69 billion. 

In 2023, an outpouring of generosity produced record-high giving from resilient but changing donors. 

Generosity—an expression of faith

"In study after study, says Karl Zinsmeister, author of The Almanac of American Philanthropy, "religious practice is the behavioral variable with the strongest and most consistent association with generous giving."

Here are Internet headlines from the past few years that underscore that point:

"The Gospel of Generosity: Study finds Scripture-engaged Americans are among the most generous"

"People who attend church regularly are more likely to donate to charities"

"The more people go to church, the more they give to church, study shows"

While those stories reflect American findings, Gallup surveys conducted from 2005 to 2009 in 145 countries revealed that these same religious practices held true internationally. 

In an article in Philanthropy, Zinsmeister offers the following insights:

• Among Americans who attend services weekly and pray daily, 45% had volunteered during the previous week.
• Two-thirds of people who worship at least twice a month give to secular causes, compared to half of non-attenders.
• Seven of ten weekly church attenders told Pew Research they consider "work to help the needy" an "essential part" of their faith. 
• Religion annually contributes an estimated $1.2 trillion of socio-economic value to the U.S. economy. That total is more than the combined revenue of America's ten biggest tech giants and the total economy of all but 14 nations.

A new study by Indiana University and the University of Notre Dame found that charitable giving fell by about $20 billion in 2018 after the Tax Cuts and Jobs Act was passed by the U.S. Congress. 

However, according to that same study, the TCJA's increase in the standard (vs. itemized) deduction, which 90 percent of filers took in 2021 and is being raised for the 2024 tax season, had little to no effect on giving to houses of worship. 

In another article, "Less God, Less Giving?" Karl Zinsmeister notes:

"It's clear that America's unusual religiosity and extraordinary generosity are closely linked. As faith spirals downward, voluntary giving is very likely to follow. An obvious question for philanthropists is whether the causation arrow can be reversed." 

Blinking lights

What's happening in charitable giving over the donor spectrum, particularly middle-class philanthropy? 

1. Giving is increasing because of large gifts from wealthy donors. Smaller and mid-level donors are slowly disappearing across the broad range of nonprofits. This impacts local charities like food pantries, YMCAs, and libraries. Large gifts tend to go to medical centers and museums. (See Dr. Ruth Gottesman's $1 billion gift to the Albert Einstein School of Medicine, Bronx, New York.)

2. The number of giving households is decreasing from all economic strata. Volunteerism is also in decline. 

3. One-time donors giving less than $500 and $100 are collapsing. These are 98 percent of all givers.  

4. Retention rates are declining among all donor categories.

5. Inflation is a thief but doesn't completely explain certain sectors' decline. Last year, considerable sums were spent on consumer goods, travel, and entertainment in the U.S. 

6. The percentage of Americans who gave to religious causes is decreasing with attendance at worship services. 

The Great Recession (2007-2009) made it difficult for some younger Americans to establish a habit of giving. Only one-third of households aged 40 and under gave to charities in 2018. 

What factors motivate them to give, especially if they don't attend worship services or belong to networks encouraging giving?

Communicating well

Some observers believe that decreases in giving are often attributable to communication lapses and ineffective messages, as donors are looking for reasons to give.

"People give to causes they consider important regardless of their income and expenses," reports the American Bible Society in their annual study of giving. "The spirit of generosity in the U.S. remains strong," said Michael Tomlinson, president of the BDI Fundraising Agency.

How do those with expertise suggest improving donor relationships and successfully sharing the worthiness of your cause? 

By doubling down on building trust with donors and inviting others into the fold. Transparency and accountability are paramount.

Demonstrating the impact of donor investment.

Crafting content with engagement in mind. What would that look like?

Telling great stories and harnessing technology to support people in need. The premium is on stories that speak to the heart and mind. 

When it comes to bequests, don't overlook smaller or mid-size donors, as they may be able to make a larger gift someday. 

And don't forget to say "thank you" for even the smallest contributions.

*Giving to religion, as defined by Giving USA, includes churches and mission organizations.

Sources: Indiana University Lilly School of Philanthropy; BDI; Mission Wired; The Chronicle of Philanthropy; Philanthropy Roundtable; New York Times; American Bible Society; Boomerang; and The Wall Street Journal.  

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Every Organization Is Sinkable

(C) Strings Magazine

"Contrary to popular mythology, Titanic was never described as 'unsinkable' without qualification until after she sank."

—Richard Howells

Did an iceberg in the North Atlantic cause the RMS Titanic, the world's largest vessel, to begin sinking around 11:40 p.m. on April 14, 1912, off Newfoundland? Less than three hours later, the ship plunged 12,500 feet or 2.5 miles at a speed of 35 to 40 knots (40 to 46 mph), leaving an impact on the sea floor that is still visible today.

Of the 2,224 passengers and crew, nearly 1,500 died in that preventable tragedy. 

Damaged from the inside out

Or maybe it was something else, such as a broken organizational culture at Harland & Wolf, the Titanic's Belfast builder, or the White Star Line headquartered in Liverpool, England, which owned and operated the luxurious ocean liner.

"The Titanic was doomed from the start due to a flawed corporate culture," concluded Darry Wright, a senior global executive with EY Canada who studied the accident. 

"It was not the iceberg that led to the downfall of the ship; rather, it was a culture of overconfidence, narrow-mindedness—and a lack of balance between innovation and risk. Leaders who did not acknowledge the intrinsic flaws (rivet failure and open portholes) in the ship's design," Wright added.

How dangerous is it to overestimate our abilities or knowledge when needing more expertise in a particular area? Very. (Dunning-Kruger effect)

The Titanic's crew and modern management have this in common—the practice of ignoring legitimate warnings. 

On April 14, 1912, a British merchant ship, the SS Mesaba, sent a radio warning about an ice field with large icebergs and heavy icepacks. That message never reached the bridge. At 10:55 p.m., the SS California radioed the Titanic, saying it was stopped and "fully surrounded by ice."  The Californian's crew later misinterpreted Titanic's calls for help.

Before leaving Southampton, Captain Edward Smith knew the drift ice field was larger and further south than in previous years. 

At the time of the accident, the Titanic was sailing at 22 knots (25 mph), two knots below its maximum speed.

The Titanic Syndrome lecture links an overreliance on past success to the night's complications. The captain and crew were experienced at sea under normal sailing conditions. But how can a spotter see afar with the binoculars missing in the Crow's Nest? Or what does a captain do after hitting an iceberg with insufficient liferafts onboard?

Organizational icebergs

The International Ice Patrol says an iceberg is a piece of freshwater ice over 15 meters or 16 yards long that has broken off a glacier or ice shelf and is floating freely in the water. Icebergs vary considerably in size and shape. 

According to the Polar Times, the largest iceberg on record was sighted by the USS Glacier on November 12, 1956, west of Scott Island in the South Pacific Ocean. At 335 by 97 kilometers (208 by 60 miles), it was larger than Belgium. A study by The Ohio State University suggests that about one-tenth of the volume of an iceberg is above water and follows Archimedes' Principle of Buoyancy.  

Two of the biggest icebergs threatening businesses and nonprofits are the absence of mutual trust among colleagues and an inability to recognize emerging internal and external realities. Both contribute to strenuous transitions when changes are needed with people, products, or services. 

Broken cultures sink strategies. 

MIT research shows that it takes more than a narrative to repair cultures, as there is often a gap between what is said and what is done. That study says 88% of employees report a lack of organizational preparedness in facing new challenges. 

Repairing the damage includes finding the glue to hold everyone together, clearing out the noise overtaking vital communication, and clarifying what is unique and special about the enterprise. 

Saying it, talking about it, and writing it down doesn't make it so.

Small holes—sizeable destruction

A 1996 exploration of scientists and engineers underwritten by the Discovery Channel found six thin openings across the Titanic's starboard hull, which were likely the cause of its physical demise. The total area of damage is 12-13 square feet or less than the area of two sidewalk squares. 

"It was not the size but the placement of the openings across six watertight holds," says William H. Garzke Jr, a naval architect. "Everything that could go wrong did. Those half-dozen slits let in 39,000 tons of water, sinking the Titanic," the investigators wrote.

Would there have been less damage at slower speeds? The experts say yes. 

Under the right conditions, any ship can sink.

Paying respects

On June 18, 2023, a month before our Transatlantic Crossing on Cunard's Queen Mary 2 from Brooklyn, New York, to Southampton, England, the Titan submersible imploded while on an exploration of the Titanic site. All five on board were killed. Stockton Chase, CEO of OceanGate, Titan's owner, was among those who lost their lives that day. 

Warnings about the Titan's safety were widely shared but not addressed. 

As the QM2 approaches the coast of Newfoundland heading eastbound, the Titanic site is displayed on a screen in the cabin. Captain Andrew Hall announced on this trip that the QM2 would sail north of the Titanic site. The horns will blast to pay respects to those whose lives were lost on that fateful voyage 111 years ago.

At the Sunday worship service sponsored by the QM2, the congregation sings the British hymn, "Eternal Father, Strong to Save." Written in 1860 by William Whiting, the anthem was inspired by the dangers of the sea described in Psalms 107.  

The last word

The BBC reported that one of the Titan submersible crew's final messages was, "All good here."

The surviving second officer on the Titanic, Charles Lightoller, was quoted in the film A Night to Remember as saying, "We were so sure."

This is a tale of two unique vessels, one very large and the other very small, whose fates were determined not from the outside but from the inside out. 

As you go about your work, keep that life-saving lesson in mind.

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When Customers Leave and They Don't Say Why

Getting Images

"The true test of business's customer service fitness is not when things are going right--but rather what it does when things go wrong."

--Steve Ferrante

One of the more overlooked aspects of growing a business is retaining customers, especially in competitive markets like retail, dining, and travel. A good way to achieve that is to pay attention to what Dr. Albert O. Hirschman calls "repairable lapses."

Every company, nonprofit organization, professional services firm, and house of worship sometimes needs to catch up.

Yet, the goal is not perfection but consistency, honesty, and integrity in our dealings on both sides of the counter. That behavioral trio is essential for trustworthy relationships and loyalty. Best efforts are like an insurance policy for when bad days happen--and they do.

Let's say upfront that viability and profitability require new and retained customers. It's not one or the other, but both. However, the September Post is about the work needed to build customer satisfaction by keeping products or services in good order and fixing them when they fall below acceptable performance levels.

That means when something goes wrong and is brought to management's attention, even by associates, action should be taken to get things back on course as soon as possible. Sometimes, it's as simple as apologizing and making matters right--on the spot. Ritz Carlton Hotels gives frontline workers the authority to do just that. Well-managed restaurants do the same with servers. 

Expressing sincere regret with concrete steps is an effective way to disarm unhappy buyers. Immediate responses help restore reputations as positive word spreads among business, social, and family networks.

This principle of repairability is important because it allows corrections within a reasonable period and cost. As with health, the point is not to let small problems become life-threatening through neglect. 

Departure closes the door

Dr. Hirschman, author of Exit, Voice, and Loyalty (Harvard University Press), suggests a reliable way to identify operational decline is through "exit." Customers leaving, especially in measurable numbers, are sending a message. 

Walking out quietly, though, makes it difficult to always know exactly what that message is. Exiting customers also give up an opportunity to make better what they don't like.  

How can those losses be reversed? 

"Management must find ways to correct whatever faults have led to these exits," Dr. Hirschman says. That's why feedback is necessary for organizational health. How are we doing, and where can we improve? 

Even with inflation now at 2.9%, down from 9.1% in 2022, changed shopping habits are in place for many households.

If doable, exit interviews shed light on disengagement, providing insights into what it might take to get someone back in the fold (i.e., faith communities). Resolving problems should be a priority, as finding new clientele is time-consuming and hard. 

Research by Frederick Reichheld, inventor of the net promoter score, shows that increasing customer retention rates by 5% increases profits by 25% to 95%. 

Keeping the right customers is of great worth to enterprises, big and small.

Speaking but not too loud

The complement to exit is "voice," although consumers can speak and still leave. Voice gives rise to advocacy by remaining in a system. The book suggests that what causes us to choose voice over exit is loyalty, which, unfortunately, is a diminishing value. 

Customers or members may express their objections to anyone they believe cares. "Voice is effective up to a point and can be overdone," says Dr. Hirschman. Voices alert management to failings but must give management time to respond to the pressures brought to bear," he adds. How much time it takes for remedial action to take effect depends on the situation's complexity. 

Take the recent Crowdstrike-Microsoft crisis, which caused the largest IT outage in history.  

A Crowdstrike software update failed, causing flight delays, broadcast disruptions, and blue screens on corporate PCs worldwide. Crowdstrike's founder and CEO, George Kurtz, has publicly apologized. "I want to sincerely apologize directly to all of you for today's outage. All of CrowdStrike understands the gravity and impact of the situation." 

He reiterated the company's earlier message that the incident on Friday, July 19, was not the result of a cyberattack.

Not all airlines use Crowdstrike. Of those that do, Delta claims it was more affected than others. From July 19 to 25, it canceled 7,000 flights, affecting a half-million passengers due to the IT outages. 

"I want to apologize to every one of you who have been impacted by these events," Delta's CEO Ed Bastian told customers. "Delta is in the business of connecting the world, and we understand how difficult it can be when your travels are disrupted."

Loyalty is a two-way street

Delta's passengers voiced their anger through social media and the press, as flyers were stranded in airports and sleeping on floors. Most affected travelers, including Sky Miles members, will stick around as they have little choice. Delta's slower recovery from the outage follows an earlier J.D. Power survey showing the airline as the best in first-class and premium coach satisfaction. *   

The U.S. Transportation Department, which has received more than 5,000 complaints, has opened an investigation into Delta's response. Delta has retained famed litigator David Boies and is suing Crowdstrike and Microsoft to recover a projected half-billion cost; both companies denied fault. 

Some passengers use their collective "voice" through a class action lawsuit to exert legal and political pressure on Delta's top management to reach financial settlements. 

How does a business repair that kind of damage? As quickly and transparently as possible. 

A Delta spokesman told The Wall Street Journal that the company has processed thousands of refunds and reimbursement requests. "The airline is working tirelessly to make this right for customers." 

After suffering severe turbulence, how will Delta land safely? 

One way is remembering what Scottish novelist J. M. Barrie said: "Life is a long lesson in humility."

* The author is a Delta SkyMiles member.  

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