July 01, 2019

Brené Brown--TEDx Talk on Vulnerability

Best-selling author, Brené Brown, studies human connection -- our ability to empathize, belong, and love. In a poignant, funny talk, she shares a deep insight from her research that sent her on a personal quest to know herself and understand humanity. A talk to share.

(C) Cloud Optics
This talk, viewed by over 40 million people, was presented to a local audience at TEDxHouston, an independent event. 
See what you think.


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June 01, 2019

A Nightly Logistics Ballet


"Whatever we hope  to do with ease, we must first do with diligence."

--Samuel Johnson

There's an up-close look at the increasing speed of the logistics business in the May/June issue of Chief Executive magazine featuring FedEx, founded in 1971 as Federal Express by Frederick Smith.    


Rising expectations for immediate commercial gratification, especially among younger households, are pushing logistics and supply chain management to new levels of performance--aided by robots doing repetitive tasks.  

(C) FEDEX

"Organizational culture contributes to FedEx success," Richard Smith, CEO of FedEx Logistics, is quoted as saying. "You must be able to pivot quickly and nimbly shift strategy to delight the customer in the face of inevitable surprises," he added.  

Adapting when necessary

FedEx announced that it would begin Sunday delivery to most U.S. homes this month. That decision comes amid significant changes in online shopping patterns.   

Additionally, FedEx said it planned to hire about 700 flexible part-time Express drivers in 160 residential and rural domestic markets, responding to mounting pressure from Amazon on traditional delivery services such as FedEx and UPS. 

While leadership and strategy get more attention, the daily routine shows what an organization is made of in terms of experience, processes, and results.

The evening sort

The next time you review internal collaboration to see if it's functioning correctly, consider the following operational complexity:

At the FedEx World Hub in Memphis, Tennessee, at what's referred to as the "evening sort," an intricate ballet is performed each evening.  

The sort involves:

-84 miles of conveyor belts

-150 cargo jets

-7,000 employees

-1.5 million packages

The simple goal? Make sure your package and mine get to where it needs to go.

And 24 hours later, FedEx crews do the evening sort all over again.

The next day

According to the FedEx website, the company covers every U. S. street address and services more than 220 countries and territories. In addition, air-ground express service flows through 650 airports worldwide, with just over 600 aircraft in the FedEx fleet.   

In addition to the late-night staff in Memphis, it's up to more than 240,000 team members globally to make the pick-up and delivery cycle work daily. 

What's a key factor for success in prompt delivery? An easy-to-read house or business address on the premises.

Choreography

Ballet dancers make what they do look easy when it's one of the most challenging tasks. Just ask any associate working the night shift at FedEx.*



*No doubt similar efforts are put forth by United Parcel Service (UPS) employees and the United States Postal Service (USPS).




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May 01, 2019

A Mind That Is Still

"Few things are brought to a successful issue by impetuous desire, but most by calm and prudent forethought."

--Thucydides 

It was announced recently that James A. Forese, current president of Citigroup, will retire. After 34 years at Citigroup, The Wall Street Journal reported that Mr. Forese, age 56, and head of the bank's Institutional Client Group, was leaving after spending nearly a decade helping clean up from the spending crisis that contributed to the Great Recession.

(C) Inc.
Tributes to the man

What caught our attention is how some of Mr. Forese's colleagues described the man who had risen to the No. 2 position at the 3rd largest bank in the U.S.  

Keep in mind the context of the mid-2000s--it felt as though the business world, as we knew it, was coming to an end. The housing bubble burst. Credit markets froze. Big companies like General Motors, Lehman Brothers, and Washington Mutual went bankrupt. Nearly 700 hundred thousand people a month were losing their jobs.  

So how did Mr. Forese perform in a time of extreme duress?

"We would not be the company we are without his stewardship," Citigroup CEO Michael Corbat said in a company-wide memo.

Another person added, "He (Jamie Forese) is known for being even-keeled and willing to speak his mind."  

One former Citigroup executive, Tom Obermaier, offered that Jamie Forese was a "voice of calm" during the 2008 financial crisis."When everybody in many respects was in the classic Citi game of pointing fingers, Jamie got everybody in line, calmed everybody down," Mr. Obermaier said.

How executives are described in their departure says much about who they are, not just their accomplishments.    

When your time is up, what will they say about you?

How we think

Mr. Forese's response to such a difficult moment reminds us of the writings of James Allen and the idea that inner thoughts determine outward behaviors. Here is what Allen says:

1. The calmness of the mind is one of the beautiful jewels of wisdom. It is the result of long and patient effort in self-control. Its presence indicates ripened experience and a more than ordinary knowledge of laws and operations of thought.

2. A person becomes calm in understanding themselves as a thought-evolving being. Knowledge necessitates the understanding of others. When we see the internal relations of things more clearly, we cease to fuss, fume, worry, grieve, and remain poised, steadfast, and serene.

3. Keep your hand firmly upon the helm of thought. Self-control is strength; Right thought is mastery; Calmness is power. 

Connected with reality

A measure of one's temperament often overlooked in the hiring process contributes significantly to a leader's success. With dissolving behavioral norms and markets upended by technology and demographics, it's essential to have at least one person with a non-anxious presence in the room.

To underscore that point--amid the worst financial crisis since the Great Depression, Citigroup seems to have significantly benefited from Jamie Forese's experience and a mind that is still.     



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April 01, 2019

Uncommon Friends

"One loyal friend is worth ten thousand relatives."

--Euripides

No matter where we lived growing up in Michigan, our home was filled with conversations, mainly around the dinner table. Even after the arrival of a black and white Silvertone television from Sears, Roebuck, and Company in the late 1950s, talking face-to-face was a priority for our family.  

My mother had culinary gifts, a draw for a host of friends, neighbors, and dad's parishioners, around an oft-crowded mahogany dining room table (which now sits in our Florida home). On those special occasions, time stood still.     

That table talk can best be described as story-filled exchanges among older adults who enjoyed politics, religion, and sports. Those same topics still show up when three generations of our family gather during the holiday.     

From our early years, we learned the value of carefully sharing ideas among close friends.  

Sitting on the porch. 

In March, long-time friends and high school classmates Dave and Linda Johnson took Chris and me to the Edison-Ford winter estates. Nearly 25 years have passed since we were in Ft. Myers, Florida, in that beautifully landscaped setting on palm tree-lined McGregor Boulevard next to the Caloosahatchee River. 

Thomas A. Edison first visited this part of the Southeastern U.S. in 1885 and, while there, purchased the site that would become his winter home and laboratory. 

Henry Ford, the founder of Ford Motor Company, purchased the adjoining property in 1916.  

Image result for images edison ford and firestone in color
(L-R) Henry Ford, Thomas A. Edison, Harvey S. Firestone
on the front porch of the Edison laboratory in
Ft. Myers, Florida Circa 1930 (C) Edison Estate

Edison, Ford, and Harvey S. Firestone, founder of the Firestone Tire and Rubber Co., whose winter home was in Palm Beach, Florida, became "uncommon friends" spending time together in sunny Florida. Their f
avorite places to sit and talk were the Edison and Ford-covered porches.  

Our tour guide pointed out that none of the three great minds were "inventors," something I had not thought about. Innovators, not inventors, maybe a better word to describe these seasonal friends, the guide offered.   

To illustrate--

o In 1800, Alessandro Volta developed the first practical method for generating electricity--the battery. English chemist, Humphry Davy, produced the first electric lamp that same year. What Thomas Edison did in 1879 was surpass his competition by creating a practical and inexpensive carbon-filament light bulb.  

o Henry Ford didn't invent the automobile--that was probably Karl Benz in 1885 or 1886. Nevertheless, Ford found a way to mass produce the Model T car and sell 11,000 in 1908-09, raising $9 million to secure and expand the business.   

o John Boyd Dunlop, a Scottish inventor, first patented the air-filled tire in 1887. Harvey Firestone saw the potential for marketing tires to automobile companies and started a company in 1890.

One conversation during World War I led Edison to partner with Ford and Firestone to find a rubber tree plant that could proliferate in the U.S., removing dependence on foreign rubber. They each contributed $25,000 ($630,000 in current dollars) to organize the Edison Botanic Research Corporation and create a domestic rubber supply. 

What did Edison find? After testing 17,000 plant samples, he discovered a source in the plentiful Goldenrods, flowering plants in the aster family. 

If around today, these industrial innovators would likely be talking about artificial intelligence and autonomous vehicles. Robotics and new sources of energy. Or the unintended consequences of radial tires (they last too long).  

I doubt their conversations would be considered small talk.  

The wisdom of good friends

Who are your uncommon friends? How often do you discuss things that matter most to each of you?    

Irrespective of Facebook's notion of "friending," real friends are few, and deep conversations are rare.

You may be unable to sit on a porch in a botanical garden like Edison, Ford, and Firestone. Still, in a business culture where individuals tend to over-schedule themselves, there's wisdom in making time to be among exceptional friends. The greater your responsibility, the more you need to be around those who can be trusted, especially when thinking out loud.  

Face-to-face conversations are sources of laughter, meaning, and encouragement in the correct settings. Who knows, under those circumstances, a transformative idea could even emerge. 


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March 01, 2019

The Portable Bubble

"If you are not being challenged in your thoughts, then you are not aware of what others who are different than you are thinking."   

--Mary Charleson

Larry Culp, the new CEO of General Electric (GE), had a successful run in the same position at Danaher Corp. The market capitalization of Danaher grew to $50 billion from $9.7 billion during his 14-year term. One of the management practices Mr. Culp employed at the global science and technology company was to spend time in the field. Making himself available to workers as he toured various operations was his way of learning about matters firsthand. 

GE laid off 30,000 employees in 2018, so there will be fewer associates for Mr. Culp to talk with as he makes his rounds.

At The Home Depot, members of the Board of Directors "regularly visit stores and engage in the operational review of stores throughout the year," according to the company's website.

Peter Magowan, who headed up Safeway and later purchased the San Francisco Giants along with other investors in 1992, avoided the owners' suite, choosing to sit in the stands to experience the game with fans. He did that while wearing a suit.    

Keep moving

In the 1980s, "Management by Walking (or Wondering) Around," a term coined by Tom Peters, described how Bill Hewlett and David Packard ran their computer company. So the idea of stopping by to talk face-to-face with employees to get a sense of how things are going, and hear what they are thinking, has a lot of value if done correctly.  

That's certainly one way to keep from being enveloped by a corporate echo chamber where everyone thinks alike.  

Bubbles are portable, meaning it's possible to stay in one even while traveling. Direct reports and executive staff often arrange schedules that make leaders visible but unreachable. When out and about, top management must insist on engaging with those who run the business daily.  

Getting fresh air

Hal Gregerson, Executive Director of the MIT Leadership Center, has written extensively about executive bubbles. "The greatest responsibility of a CEO is to recognize whether (the company) requires a major change in direction," Gregerson writes.  

How does one undertake that assessment without a free flow of ideas from different perspectives?  

Dr. Gregerson's interviews with CEOs highlight two disturbing themes: "People telling you what they think you want to hear, and people being fearful of telling you things they believe you don't want to hear."   

Nandan Nilekani, a co-founder of Infosys, says you have to guard against a "good news cocoon."  

What can a CEO do?

Are you insulated from information critical to your work? To find out, ask yourself these questions: 1

  • How many barriers do people have to cross to talk directly with you?
  • How much of your typical workweek is spent outside your office or headquarters?
  • When was the last time you were wrong about something at work?
  • How quickly did you uncover your previous mistake? How fast did you change course?
  • How often do you talk to people who make you uncomfortable?
  • How often do you wait silently for others to answer your questions?
  • How many times this week have you said, "I don't know," in response to a question?


1 Bursting the CEO Bubble


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February 01, 2019

2030

"There's no such place as far away."

--Richard Bach

There are 
10 years and 11 months  (3,987 days ) between 1 February 2019 and 1 January 2030. While that may seem like a great distance, it really isn't. The year 2030 is closer than you think.  
    
Since we perceive time speeding up as we age, take a moment to consider the following:

Leadership

1. How old are you now?

2. How old will you be in 2030?

3. Who is likely to be leading the business in 2030?

4. What is the current average age of your management team?

5. What is likely to be the average age of your management team in 2030?

Associates

6. What is the average age of your workforce now?

7. What is likely to be the average age of your workforce in 2030?

8. What is the primary source of your employees today?

9. What is likely to be the primary source of employees in 2030?


Customers

10. What is the average age of your best customers, members, or donors?

11. What is likely the average age of your best customers, members, or donors in 2030?

12. What are the sources of your best customers, members, or donors?

13. How long did it take to develop those relationships?

14. Where will your best customers, members, or donors likely come from in 2030?

Paying too much attention to technological innovation and not enough to relationships tends to obscure the importance of demographics. Fortunately, consistencies in behavior are more traceable than differences. At the deepest levels of the human spirit, people are predictable.  

Therefore, in some ways, 2030 is already here.          



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January 01, 2019

Creating a Corporate Strategy

"The essence of strategy is choosing what not to do."

--Dr. Michael Porter, Harvard Business School

Here's something to think about as a new year gets underway:

Does your business have a corporate strategy, defined as the desired future and a way to make it happen? Is that idea clearly communicated and understood? Do the assumptions on which the system is based fit current reality? 

(C) APMG

And is there congruency between the corporate and business unit strategies? Units need their own design, as do staffs. However, corporate should go first.    

The goal is aligning the corporate, unit, and staff, without which results are substantially lessened. 

Getting started with the process can be challenging but having the right people involved is critical to the outcome. With no one way to create a strategy (looking ahead and reasoning back), there are options to consider:

Option A (Predictive Strategy)

Premise:

The world is going to look like this--frame the corporate strategy for that future. 2
  • A message, theme, or direction (20%)  
  • Implementation (80%)
Option B (Non-predictive strategy)

Premise:

We don't know what the world is going to look like. Therefore we need a strategy or set of methods that can be successful almost irrespective of what the world looks like. 3
  • A message, theme, or direction (20%)  
  • Implementation (80%)  
Center of the earth

Sometimes corporate strategies are rushed into creation, often bypassing the "core."  

If we begin at the center or with the purpose (why?), there's a better chance the blank spaces get filled in with what makes sense.    

So what's a core idea?

It's a simple articulation of the original purpose or innermost reason for being. It forms the basis of an organization's culture. 

A core idea is central to what you're about. It's not a mission statement; it's what you want to accomplish, a positive goal that can be realized at any time.

Some illustrations:  

o   Taking Wall Street to Main Street--Merrill Lynch
o   Technology married with liberal arts--Apple
o   Developing leaders of character--West Point

The right way to communicate a core is to embody and live it.

No organization should assume current employees or management teams know what's in the core. That means conversations, development programs, and onboarding should include references to an organization's history and a unique sense of purpose.   

A neglected idea

Borrowing from game theory, we consider an overlooked but valuable concept--having a dominant strategy. 

"In general, someone has a dominant strategy when they have one course of action that outperforms all others no matter what competitors do. If someone has such a strategy, their decisions become very simple; they can choose the dominant plan without worrying about a rival's moves.  

Therefore, it is the first thing one should seek." 4

We learn that dominance in the term "dominant strategy" is superiority over another of your potential strategies (make a list), not of your business over a competitor.   

Avoiding common errors

After nearly five decades of observation, experience, and study, we note the following recurring problems facing CEOs when it comes to corporate strategy:

-Not being clear.

-Giving up too soon.  

-Building an easily reversible strategy.  

-Utterances and actions that don't match.

-Failing to have the right people in the right places at the correct times.

(See our 1 April 2017 post, The Struggle with Strategy.)

The speed of light

A year goes by quickly.  

What will you pay attention to over the next 12 months to ensure the business under your watch is moving in the right direction? If it is, how to maintain momentum. If not, how to adapt to regain momentum.  

No matter the analytics, the rare corporate strategy that works at any time is ultimately a series of judgment calls. When it comes to thinking strategically, quoting Thoreau, "It's not what you look at that matters, it's what you see."         



1 Benjamin B. Tregoe and John W. Zimmerman

2 Philippe Silberzahn
3 Ibid
4 Avinash K. Dixit and Barry J. Nalebuff


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