Category: Leadership

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The Ten Commandments for Business Failure

Why is it that some brands fail, while others stand the test of time?

“In the 1980’s alone 230 companies disappeared from the Fortune 500. In fact, only sixteen of the 100 largest companies that were around in the early 1900’s are still with us.”These words are from Donald R. Keough’s 2008 book ‘The Ten Commandments for Business Failure‘.

Coke is one of those brands. Introduced in 1886, Whether you like Coke or not, it’s difficult to deny the brand’s, ubiquity, staying power and success through the years. Coke is recognized at one of today’s most valuable brands.

You may never have heard of Donald Keough, but he is at least partially responsible for the The Coca-Cola Company’s longevity. Mr. Keough was first associated with the company back in 1950, and still sits on its board 65 years later. He has served as the company’s President and Chief Operating Officer and retired from his position as Chairman of the Board of Coca-Cola Enterprises in 1993.

Donald Keough has also served on boards of several other distinguished companies including The Washington Post, H.J. Heinz Company and Berkshire Hathaway. He holds five honorary doctorates, including ones from Trinity College in Dublin, Ireland and his alma mater the University of Notre Dame.

Legendary investor and one of the richest men in the world, Warren Buffet, documented his resounding endorsement in the foreword. “It has been an article of faith for me that I should always try to hang out with people who are better than I. There is no question that by doing so, you move yourself up. It worked for me in marriage, and it’s worked for me with Don Keough.” As if any further endorsement were necessary, Microsoft co-founder, Bill Gates, and Jack Welch who led GE for 20 years as Chairman and CEO also sanctioned the book on its front cover.

In a charming and often self-deprecating style, the author takes us through the tongue-in-cheek Ten Commandments, for Failure, which are as follows:

1. Quit Taking Risks

Creating profits in the long-term requires innovation in the now. Business leaders are paid to “be discontented”, to take the calculated risks that will ensure the company’s success in the future. “When you’re comfortable, the temptation to quit taking risks is so great, it’s almost irresistible”, but it is the number one way to seal your fate and fail. Mistakes and miscalculations, even very costly ones, are simply the price of staying in business.

2. Be Inflexible 

The “if it ain’t broke, don’t fix it” mentality is the second best way to secure the demise of a business. There is no one formula for success that will continue to work always; leaders must constantly challenge themselves to change. “Flexibility is a continual deeply thoughtful process of examining situations and when warranted, quickly adapting to changing circumstances.” Darwin’s concept natural selection is applicable not just to organic species, but to the survival of businesses as well.

3. Isolate Yourself

Staying in touch with customers, distributors, managers and staff is essential to continued growth and success. It is temptingly easy to physically isolate yourself from “distractions” in the comfort of leather sofas and plush carpets in corner offices on high floors guarded by layers of Personal Assistants. Creating your own “executive bubble” is a great way to be the last to know when anything is going wrong. Answer your own phone, make your own coffee, know the names of your people – walk around and find out how they are doing and what the Company needs to be doing better.

4. Assume Infallibility

Another great way to fail successfully is to never ever admit a problem or a mistake. Develop the artful skill of finger-pointing. Blame external forces such as currency fluctuations or the unusually active hurricane season. Cover up mistakes for as long as possible without admitting that anything is going wrong. It’s best to wait until there is a full-blown crisis and then say “mistakes were made…” (but not by me).

5. Play the Game Close to the Foul Line

When you consistently “play it close to the foul line”, your employers will not trust you, and neither will your customers. If you achieve success by destroying your principles in the process, it will not last. Build a reputation for doing the right thing – to be forthright, honest and fair. Build trust. Honor and decency are virtues which never become outdated.

6. Don’t Take Time to Think

“Thought is hard” ~Goethe. In many ways technology often adds to the complexity of life without providing appreciable advantages. With the steady stream of data constantly bombarding us, it is appealing to believe that being busy is the same as being effective. Base decisions on careful evaluation. Objectively analyze mistakes; they are a powerful opportunity to see what went wrong. Making time to think is essential for success.

7. Put All Your Faith in Experts and Outside Consultants

“It is better to know some of the questions than all of the answers.” -James Thurber. Putting too much faith in outside expertise can lead to disastrous consequences. Quite often, managers insecure in their authority blame restructuring, layoffs and other unpleasant decisions on plans drawn up by outside experts. This is just another cowardly way of passing the buck. Good business leaders take responsibility for the future of their businesses, they don’t farm out important strategy decisions to third parties.

8. Love Your Bureaucracy

If you want fail spectacularly, put administrative concerns ahead of everything else. Chains of command, paper pushing, and general red tape can lead to endemic dysfunction. Bureaucracy within organizations causes responsibility to become so diluted that the managers become incapable of making objective decisions. Action becomes  impossible. In a crisis, the results can be catastrophic.

9. Send Mixed Messages

Communication does not occur unless the message is both heard and understood. For example, rewarding employees who have not met performance targets sends the message that the targets really don’t matter. Be consistent in the message you send. Apply accountability and follow through with the consequences.

10. Be Afraid of the Future

If you want to paralyze your business, start proceeding with caution all the time, allow pessimism to thrive. Unquenchable optimism is the spirit the engenders achievement and success. Move boldly ahead – approach the future with optimism – especially when the circumstances are unfavorable.

11. Lose Your Passion for Work, for Life

To fail, just continue to set low expectations for yourself and everyone around you; keep saying “that’s good enough”, or “that’s not my job”. All achievement requires passion. Work is hard, but it is worth the effort to those who are convinced that they are capable of being better. It is the strong desire to do better and solve problems that should drive your passion to work harder. Successful people perform at a higher level, just for the satisfaction of doing it. Passion can be cultivated; form a strong emotional connection with whatever you are doing, and never stop.

 

In many ways, Donald Keough’s book is a story of failure, with lively anecdotes illustrating each commandment, the author details the perilous mistakes of Xerox, IBM, Ford and especially Coke. Companies don’t fail, people do.

It is also a tale of success.  Great leaders don’t allow themselves to be dragged down by failure, they recognize the mistake, admit their errors and find a way to move on.  This amazing little books gives us a glimpse into how a product established in 1886 is still with us today as one of the strongest and most loved brands in the world. It is as refreshing and stimulating as an ice-cold glass of Coke Zero on a hot summer day. I highly recommend it.

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Get Busy Living

Andy Dufresne (Tim Robbins) and “Red” (Morgan Freeman) in ‘The Shawshank Redemption’

Millions of people across the globe have been inspired by the 1994 motion picture ‘The Shawshank Redemption’. The film stars Tim Robbins, as Andy Dufresne, and Morgan Freeman, who also brilliantly narrates the movie. Andy Dufresne is sentenced to two consecutive life sentences in Shawshank Prison, for murders he did not commit. The story spans the two decades of his imprisonment and friendship with Morgan Freeman’s character, Ellis “Red” Redding. It is one of my all time favorite films.

The Company I lead is only a few years old. Each line manager has been employed on average for about a year. I have been at the helm for several months. This week, the founder of the company, an intrepid entrepreneur, spent a few minutes giving an informal address to the leadership team.

He took some time to share his story — highlights of his business history and personal background.  He related the valuable life lessons he learned as a short guy playing the rough sport of rugby and the importance of pulling your weight on a team. In his typical hoarse tone, he then imparted one of his fundamental business philosophies. “If you’re not growing, you’re on your way out. There is no such thing as an organization being mature and maintaining the status quo.”

This statement is undeniably true, and yet easy to forget. Businesses which are unable over time to get more customers and make more revenues and profits, eventually go into decline. As costs rise and more attractive products and services enter the marketplace, they tend to become less and less profitable, and ultimately fail. Some companies die a slow organic death. Other organizations topple like a Jenga puzzle when the wrong block is removed.

At the moment, my job feels like the most challenging task I have ever undertaken. I am fully aware that a company is most vulnerable during its first few years. Each day I summon the courage to act boldly, even though I’m not sure that success will come. I banish fear and focus on the goals, knowing that results are the only true measure of leadership. I strive each day to keep growing.

This is what every human being is meant to do. Deep within each of us is the strength to lay it all on the line and believe in our own determination to make our dreams come true. Some people display these qualities to a heightened degree — many athletes and entrepreneurs, for example. But, it is perfectly natural. Deep down, we know this.

We love ‘The Shawshank Redemption’ because it tells the story of life, of struggle and vanquish over incredible adversity, of living and helping others, even where there is no freedom. Deep down we believe in hope and friendship and trust and love. We know that working hard pays off. We know that without something to strive for, we never achieve success.

Accomplishing anything worthwhile in business or in life will involve some form of struggle. For Andy, it was 20 years in the slammer, complete with the requisite gang rapes. But all the while he had hope – he lived outside and above the high walls of the prison. Resistance must be overcome in order for growth to occur. This is what life is all about. Twenty years of tunneling, and three pin-up girls later through a “river of sh*t” to come out “clean on the other side”. This is remarkable beauty and power of the human spirit.

Andy Dufresne is a fictional character, but each one of us faces our own personal set of challenges and obstacles, our own Shawshank Prison. Sometimes we allow ourselves to be paralyzed by fear, or we allow ourselves to rationalize that the effort is not worth the reward. We are wrong. Get up and grow. Grow into the person you are meant to become. Live up to your potential. Have as many experiences as you can. Make mistakes and learn from them. Build your character. Try for that promotion or salary increase. Meet those new friends. Travel to that place you’ve dreamed of seeing. Read that book. Sign up for that class. Call your mother. Forgive your father. Get busy living or get busy dying.

If you’ve never watched the movie, I highly recommend that you do. Here’s the trailer:

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10 Little Things I’ve Learned as a Female Executive

Here are some of the lessons I’ve learned over the years, and continue to learn every day.

1. Work Hard

There really is no substitute for hard work. The law of sowing and reaping and Newton’s third law hold true in nature, and are equally applicable to everyday life. Don’t expect to ever get more than you put in. Don’t expect to ever be paid more than you deserve. And if it happens, don’t expect it to last long. Compete only with yourself; strive every day to be better than you were the day before.

2. If You Don’t Ask, the Answer is Always “No”

One of the main reasons some women succeed at landing the tough assignments and earning salaries comparable to those of their male counterparts is because they’ve learned to speak up. Life is not fair and neither is the work place. Take an active role in making sure you convert your diligence into rewards — this will not happen automatically. Ask how you’re performing, ask for more responsibility, let others know when you’re being treated unfairly and toot your own horn.

3. Don’t Scratch with the Chickens

Choosing the wrong people to keep company with at work can really drag you down. Gossips are great at identifying who did what wrong, but don’t put any energy into making things right. Similarly, complainers cast blame, but take no personal responsibility. Both consistently expect the worse and both tend to consistently get the worse. When you’ve suffered a set-back, take it in your stride and move on. It is a mistake to whine or bitterly complaining to whoever will listen. Hone your skills and keep your eyes peeled for the next available opportunity. Prepare to soar with the eagles instead.

4. Flaunt Your Skills, Not Your Sexuality

Make the office a strictly “no-flirting” zone. Being inconsistent on this point may land you in compromising situations that may be difficult for you to recover from. On the other hand, celebrate the fact that you’re a woman. There is no need to forgo lipstick or try to “be one of the boys” to be taken seriously. Maintain a balance; people will find it easier to listen to what you’re saying if they aren’t being blinded by your fluorescent blue eyeshadow.

5. Lighten Up

Take the time to get to know those around you. Don’t be afraid to share a laugh or have fun at work. Embrace the concept of LBWA – leading by walking around. When people like and connect with you as an individual, they will be much more likely to support you when you really need it.

6. You Can’t Fix Everything

Being a perfectionist is an incredible waste of time and energy. Get your priorities straight, and make a habit of always working on your most important tasks first. Make a list every day. If you start your day tackling the easy stuff and then reacting to every email that pops into your in-box, you will find yourself both inefficient and over-stressed. Always put first things first, and learn to delegate or drop the things that aren’t worth your immediate time and energy.

7. Trust Your Passion

The more you enjoy what you do, the greater the likelihood of being successful and enjoying that success. Figure out what you enjoy and find ways to do more of the things you love in your job. It won’t necessarily happen overnight, but create a plan and work with it.

8. Make Time For You 

Make time to enjoy your life, and be happy and healthy. Cultivate interests outside of work – stimulate all your senses, eat well and move your body. Most of all, spend quality time with your friends and family.

9. It’s Okay to Cry

Frustrations will come, and so will the tears. When you break down emotionally on the job, it leaves people wondering if you can handle the task you’ve been entrusted with. Crying in front of bosses and coworkers will make you to lose credibility fast. Be tough on the job and save the tears for the drive home.

10. Never Stop Learning

My boss shared this gem with me just recently in a rare one-on-one moment. I embrace learning by reading voraciously on subjects that interest me. What he was talking about was learning the art of extracting ideas and solutions from everyone around. Asking others “what would you do?” is not a sign of weakness, it is a sign of real strength. It could make the difference between success and failure, particularly in really challenging times.

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The Five Dysfunctions of a Team

Ants do it. Why can’t we?

In theory, we all know the value of teamwork. In childhood, grandma admonished that “many hands make light work”. Henry Ford provided sage advice, saying “if everyone is moving forward together, then success takes care of itself”. We have all seen the glossy motivational posters. So why is it so difficult to build strong and effective teams?

Two years ago, when I became a General Manager for the first time, one of the lessons I knew I had to learn fast was how to get the most out of my new team of managers and supervisors. Having spent almost my entire career in audit, accounting and finance positions, leading a multi-disciplinary team was new to me.

I recently completed the audio version of my second book by Patrick Lencioni. “The Five Dysfunctions of a Team: A Leadership Fable” struck a chord with me.  In a cleverly woven leadership fable, Lencioni provides insight into the reasons why so many teams fail. The author shows how ineffective teams create apathy and ambiguity that will eventually cripple an organization.

Here are the natural, but dangerous pitfalls encountered by a team:

The Five Dysfunctions of a Team

1. Absence of Trust

Where there is an absence of trust in a team, members don’t get to know each other well. They are afraid to be vulnerable or admit their weaknesses or mistakes. Because the team members are constantly in defense mode, no one asks for help.

2. Fear of Conflict

Absence of trust sets the tone for a team’s inability to engage in unfiltered conflict around ideas. Effective teams disagree with each other. Instead of running their thoughts through a political filter before being spoken, they say “I disagree with you, here are the reasons why”. Veiled discussions, guarded comments, sarcasm and silence do not achieve the results that active disagreement and productive debate can yield. When team members don’t battle it out passionately, the decisions they reach will inevitably not accurately reflect the shared goals and values of the organization.

3. Lack of Commitment

Wherever there is a lack of healthy conflict then the third dysfunction is almost assured. Where there has been no “weigh-in” on matters, there is likely to be little true “buy-in” for decisions made. Team members may feign agreement during meetings, but haven’t truly given their commitment to decisions and plans of action.

4. Avoidance of Accountability

A lack of commitment to clearly defined plan of action leads to team members being hesitant to hold their peers accountable. No one gets called out for actions and behaviors that are counter-productive to the good of the team. When no one gets called out, everyone saves face, and the team loses.

5. Inattention to Results

Avoidance of accountability has only one natural conclusion. When team members  put their own  – such as career advancement, or the needs of their individual departments ahead of the collective goals of the team, then results suffer.

 

In the last two years, my leadership style has developed into one that is somewhat unconventional. I strive to create an environment that encourages vulnerability. Everyone on the team knows they have a say. I encourage debate and even passionate emotional debate. Conflict is natural and healthy. Without it, there will be no growth because the status quo is never really challenged. Arguing over concepts and ideas is not to be confused with personal mean-spirited attacks and destructive politics. In a good team, everyone knows the difference. It takes discipline and commitment to acquire that level of knowledge, but the results are truly worth it.

End note: If you are a leader who relies on a dogmatic management style, or if you are part of a team that constantly walks on eggshells trying not to offend each other, then I would like to challenge you to read Patrick Lencioni’s The Five Dysfunctions of a Team: A Leadership Fable. Learning to lead in a way that gets the most from your team will yield more positive results than you can imagine.