The COO – The Conductor of the Business Orchestra

As the Director of the San Ramon, California Chapter of the Chief Operating Officer Business Forum, I have the opportunity to work with a number of COOs from a wide variety of industries. In addition to sharing best practices and helping with business acceleration, we work to help define the role of the COO in organizations. The CEO role is well known and many have written about it, including me in my “CEO Tips I Wish I had When I Started” series. But the COO role is different. It is complex and often varies depending upon the CEO’s particular strengths.

There is a lighthearted analogy that may be appropriate - an orchestra conductor. Musical theater and particularly the big Broadway musicals are multifaceted just like a business. The story and the score are written, comparable to a strategic plan. Many different functions are involved, generally under the leadership of the producer and the director. They co-ordinate everything right up until show time, similar to the executive team. And there is a product to sell for revenue and profitability.

Show time and the conductor takes over. This is comparable to how the COO takes over as businesses reach the market and everything comes together. The performers, the business units if you will, the production team for lighting and sound and stage movement, the product supply, and even the ushers, the customer service people, are under his direction. He starts the show by a tap of his baton to focus everyone’s attention. He then brings everyone to action and the show starts. He determines the volume of the music. The right level sets the tone of the score most effectively. If it is too loud, it will drown out the performers and their roles will be lost. If it is too soft, the melodies are lost and the “imperfections” in the casts’ voices can be uncovered. He sets the tempo to facilitate the delivery of the songs in the score. His fine hand on the controls with his baton can build up the performers on stage and make them stars. If he fails, he can destroy not only the show, but the singers as well. Careers are in his hand.

How is this similar to the COO? The COO is charged with the operation of the company. It is their responsibility to make certain that the execution of the plan is done with excellence and that all of the functions work in harmony, just like the orchestra. Certainly, all of the functions and senior executives have their roles just as the actors and actresses do in the stage production, but they must be co-ordinated well. The results of the conductor’s work can be seen in the box office receipts and the results of the COO’s work can be seen on the bottom line profitability of the company.

How important is the conductor to the production in the eyes of the cast? Here is what happens at the end of every performance. After the performers have taken their bows and received the accolades from the audience, the lead performers steps forward. They direct the cast’s and audience’s attention to the orchestra pit and to the orchestra director. Then the cast applauds the conductor. They recognize his critical importance to their success and the success of the show. The audience leaves the theater often singing or humming parts of the score and continuing the tribute to the conductor.

The orchestra conductor is a critical factor in the success of the musical business. The COO is a critical factor in the success of a business. One may very well say that there is much more that a COO does to make a company successful and that is true. However, it serves as a good analogy for the critical role of the COO.

So applause, applause.




John

John Maver
President
Maver Management Group
(925) 648-7561
Maver Management

The Art of Execution – For Entrepreneurs and Others

Guy Kawasaki had some thoughts about this and I’d like to build on them.

After you raise the money, “now what”? Every entrepreneur has to answer the same question. The answer to this question is, “Now you execute.” And the next question is, “How do we execute?” It actually is the same question that faces established businesses and why we work so hard to get businesses to commit to creating a strategic business plan and writing it down.

1. Create something worth executing. You may think that you have created the greatest thing since sliced bread or if you are Al Gore, the Internet. But do some more research and make sure. Pitching, demonstrating, bootstrapping and executing are a lot easier if you've created something meaningful. Would you care to guess how many established companies are spending substantial sums and employee’s time on projects that have no market viability? So if you and your team are having a hard time executing, maybe you're working on the wrong thing.

2. Set goals. The next step is to set goals that embody these four qualities:
o Relevant. A good goal is relevant. If you're a software company, it's the number of downloads of your demo version. It isn’t being the number 2 site on Google.
o Measurable. If a goal isn't measurable, it's unlikely you'll achieve it. For a startup, quantifiable goals are things like shipping deadlines, downloads, sales volume, whatever. For established companies with new projects add revenue timing and customer acceptance levels. Keep the number of measurables meaningful since too many dictates failure. Three to five goals are plenty.
o Achievable. Take your “conservative” forecast for these goals and multiply them by 10% then use that as your goal. There is nothing more demoralizing than setting a “conservative” goal and falling short; instead take 10% of your forecast, make this your goal, and blow it away. You might think that such a practice will lead to under-achieving organizations because they aren't being challenged. Not so, since it cause you to get the traction and success you need to build upon..
o Viabile. Ensure that your goal encompasses all the factors that will make your organization viable. Postpone, or at least de-emphasize, touchy feely goals. They may make the founders feel good. They may even make the employees feel good. But companies that execute on measurable goals are happy. Those that don't, aren't. As soon as you start missing the measurable goals, all the touchy feely stuff goes out the window.

3. Establish a culture of execution. Execution is not an event--a onetime push towards achieving goals. Rather it is a way of life, and this way of life (execution versus non-execution) is set in the early days of the organization. The best way to establish this culture is for the founders, particularly the CEO, to set an example of filling goals, responding to customers, and heeding and measuring employees.

4. Communicate the goals. Many executive teams set goals, but they don't communicate these goals to the organization. For goals to be effective, they have to be communicated to every employee in the organization. Employees should wake up in the morning thinking about how they're going to help achieve these goals and in fact take “ownership” for their role.

5. Establish a single point of responsibility. If you ask your employees who is responsible for a goal, and no one can answer you in ten seconds, then it means that there's not enough accountability. If more than one person is responsible for the achievement of a goal, then no one is responsible. Good employees accept responsibility. Great employees seek responsibility.

6. Measure progress on a weekly basis. The goals that people achieve are the goals that are measured. If you don't measure progress towards a goal, you might as well not set it. This is also another reason for setting only three to five goals: people can't focus on more than five, and measuring many more that five is difficult too. The optimal time period to review progress is weekly: monthly is too little pressure; daily is too anal. Then follow through until the goal is met or becomes less relevant and is replaced.

7. Reward the achievers. Rewarding the people who achieve their goals has two positive effects. First, the achievers feel rewarded and become even more excited about doing their job. Second, the under- and non-achievers know that the company takes execution very seriously. The form of the reward can be money, stock options, time off--whatever works to serve notice to everyone that “this person delivered.”

Clearly, having the plan and having the resources are the right way to start. BUT!!!! It is critical that you execute and execute brilliantly. If this part of business isn’t your strong suit, get some help from people who have this strength. Focus your efforts on what you do brilliantly and the company can prosper.

John

John Maver
President
Maver Management Group
(925) 648-7561
Maver Management

Comment - Why Putting People First is Good Business

Lewis Green's post today about Customers is right on. Check it out.

I left the following comment on it.

Lewis, I couldn’t agree more. Without the customer and the valued customer experience we have no business or at least not for long.

I wrote about this on my website back in January as part of my "CEO tips I wish I had had when I started". If you will permit me a tag to this part “What’s in it for me – The customer.”

I see so many companies going for the cheaper solution not the more cost effective but just cheaper. Look at what the airlines are doing in an effort to make us believe that they are holding prices steady. They clearly don’t see what this does to their “brand” and the quality image they have spent BILLIONS to develop.

Thanks for another great article.

John

John Maver
President
Maver Management Group
(925) 648-7561
Maver Management

Leaders - You Can’t Send a Duck to Eagle School

I saw this headline on the Simple Truths website. Simple Truths was started by Mac Anderson after he sold off Successories and is filled with motivational and inspiration material. The basic message is that there are certain character attributes that are essential and if you want a company led by eagles you can’t expect to make them out of ducks. They are just too different.

That made me think more about eagles, which are my favorite from the animal world and the differences compared to ducks.

This is eagle school. Duck school is down on the lake.

Lesson 1: Eagles are Majestic with Character all their own
The eagle is the most majestic of all birds and not solely for its size and spirit. An eagle is around 3 feet tall and reaches over 6 ½ feet between the wings. A large bird! The eagle has come to symbolize the majesty of the air. The eagle takes the high ground if you will. A person's true character is revealed by what he does when no one is watching. The eagle is most often out of sight and out in the wild, the eagle is a very clean bird. Is this “eagle integrity”? Now on the other hand if you have seen ducks around lakes you know that they are not so clean.

Lesson 2: Eagles Are Made For the High Places
Unlike other birds like ducks that fly in the lowlands, eagles are made to fly in the high places, out of sight of the naked human eye and out of range of the hunter's rifle. Executives are meant to fly in high places and lead their company. The “high place” enables the leader to have the vision and the clarity to lead the company along the right path successful. Eagle-like executives are required to lead companies.

Lesson 3: Eagles Do Not Fly, They Soar
Eagles do not fly like other birds, flapping their wings profusely and using their own strength. Instead, eagles SOAR majestically, making use of the wind currents to gain height. What makes the eagle so special is that she sits on the rock and reads the wind and when the time is perfect she takes off and soars upward with her great wings. How will you know when the updraft is coming? How will you know how to avoid the hurricane or at least survive it? You need the right plan and then be able to capitalize on the right time to move. You will move with far more success and you can soar. Ducks fly but don’t soar.

Lesson 4: Eagles Go Through Specific Periods of Renewal
When they are about 60 years old, eagles go through a period of renewal. An eagle would find a secret place up in the mountains. It would start to claw at its face and tear out the feathers that have been damaged over the years. Through this, the eagle renews its strength by getting rid of the unnecessary things otherwise it would not be able to live till 120 years that it normally does. Business executives have business plans that need periodic renewal. Certainly not every 60 years. More like a quarterly refresher and then an annual in-depth review. Be like the eagles and do the plan renewals.

Lesson 5: Eagles Get Sick, Just Like Humans
When an eagle gets sick, it does not go to the doctor. It simply finds a favorite spot in the mountains and awaits the rays of the sun to heal it. The sun plays a major role in the life of an eagle and as such, is a major source of healing too. What is your “sun”? Is it a business coach, guide or mentor? Is it some motivational or inspirational element that has proven successful for you before? Keep these handy and use them often. They may not only help cure the sickness, they may prevent it.

Lesson 6: Even Eagles Need a Push Sometimes
High in the mountains, a baby eagle is born. One day, mama eagle takes one of her babies in her mouth and starts soaring into the skies. Suddenly, she drops the baby eaglet who starts to struggle. Just before the eaglet smashes against the rocks, mama eagle would sweep down and pick it up. This goes on for about five to eight times. Every time it is being dropped from the sky, the eaglet would struggle by flapping its wings. Mama is teaching her young to fly. Everyone needs some help sometimes. It may be a new idea, some coaching or just some reinforcement from a valued confidant.

So if you want to have eagles in your company, start with eagles not ducks.

John

John Maver
President
Maver Management Group
(925) 648-7561
Maver Management

Tom Peters - 10 Quotes to Create Excellence

Tom Peters is the champion for companies providing excellence in customer service. He writes about it frequently and does so with passion on his blog. The type of passion he wants companies and employees to have in dealing with their customers.

Here is a list of ten quotes from Tom. While all of them are insightful, I particularly resonate with number 5.

1. Excellence comes from human beings doing things of value that customers find memorable.

2. Remember. You are the only human being in the world who can help this particular customer at this particular moment in time.

3. The thing that keeps a business ahead of the competition is excellence in execution.

4. Brand inside is more important than brand outside for sustained success.

5. Leaders' careers will usually be determined by their handling of one or two critical events that no one could possibly anticipate or plan for.

6. Make sure that you spend your time on the things you say are your priorities.

7. Tuck the shower curtain in and give away two-cent candy!

8. It's remarkable how quickly an excellent culture can be torn apart by poor management.

9. Irrelevance comes from always doing the things you know how to do in the way you've always done them.

10. If you love your company and love what you do, you will serve your customers better—period!

John

John Maver
President
Maver Management Group
(925) 648-7561
Maver Management

Leadership - John Pepper

John Pepper is the ex-CEO and Chairman of the Board of Procter & Gamble. Not only did he lead the company to dramatic growth globally and set in place strategies for future growth and profitability, he is an exemplary leader. He inspires people and makes them achieve more than they ever thought possible. I have had the privilege of working for John several times during my 23 years with P&G.

In his book “What Really Matters” John Pepper reviews many of the leadership lessons from his 40+ year career at Procter & Gamble and his work outside with United Way, National Underground Railroad Freedom Center and Yale University. I am reprinting an excerpt from the book here. The complete book is outstanding and I highly recommend it for all executives.

John Pepper’s model for effective personal leadership is:

Leadership Mission
To guide and enable outstanding accomplishments and purposeful growth of individuals and institutions to help create and sustain a purposeful future.

Key Attributes of a Leader
* Develops strong personal character – starting with integrity.
* Believes deeply and passionately in the purpose of the organization. A huge appetite to win. The team comes first. “One team. One Dream.”
* Commits and makes a huge personal contribution while helping others to be all they can be.
* Challenges the status quo constantly. Always seeking to improve.
* Conveys deep respect and trust in others and the despite to help them grow.
* Pursues and stands up for he/she believes in with wisdom courage and persistence.

Key Leadership Skill Behaviors
Envision – Create the future and change the game.
Engage – Build relationships and collaborations.
Energize – Inspire people, gain enrollment and commitment.
Enable – Build capability to deliver results.
Execute – show the way in delivering superior winning results.

Go get the book.

John

John Maver
President
Maver Management Group
(925) 648-7561
Maver Management

Three Extra Hours

In February, Starbucks closed all their U.S. stores for three hours for an employee training session. That’s right; they closed all of their stores during a peak period of the early evening and then opened them all up again before closing at their regular time. In our 24/7/365 world, this seems almost unthinkable, especially for an establishment that sells coffee, the fuel that enables us to live with little downtime.

The press that followed, commented on Starbucks need to get refocused and to bring all of their employees in line with their corporate plan. Strategic planning and alignment is critical for business success. Or they commented on the need to re-instill the importance of superb interactions with their customers. After all, it is the atmosphere of the stores that really brings us all back and positive customer experience is critical for business success. Or they focused on the training that would enable the employees to produce the consistent quality cup no matter what the variety of additives. When we go into a Starbucks anywhere in the US (and even internationally) we don’t want any surprises. Consistency and efficiency are critical to business success.

All important actions. In fact, our consulting group works with clients on each one of these aspects and more. They are all important to business success.

However!

There is another lesson. What would life be like if you were to shut down your operations for three hours? Just three hours! What could you accomplish in that time period without email, internet, phone and visitors? When was the last time that you had three uninterrupted hours to do anything let alone think?

I suspect you could get a significant amount of really important work done. It would be the thinking type of work that always gets pushed aside by more “urgent” matters or fire fighting. While you would have to adjust to not having many of the tools at hand during the period, you would be able to retrain your mind to do the work it really was created for you to do and make use of your core talents.

Giving executives these three hour periods is also something that we do in our consulting group. One of the results of the work described above is a focus on what is really important and then creating the means to capitalize on it most effectively. The company gets the means to accelerate its business progress and the leaders get the time to focus on what is most important to them including think time.

An impossible task? Not at all. Starbucks did it in more than 12,000 stores. You can do it too. If you want some help, call us and we can not only help you create the plans that will drive business progress but will also get you the uninterrupted think and work time that will make your business better than ever.

Three extra hours!

John

John Maver
President
Maver Management Group
(925) 648-7561
Maver Management

B2B Branding - Why Branding Matters in B2B Marketing

Branding is generally associated with consumer packaged goods. These companies call their product offerings, brands. Brand management originated in a consumer packaged goods company, Procter& Gamble, now led by AG Lafely. I was a Brand Manager on several brands including Tide with P&G. Most of these type of companies really embrace the concept of branding and spend a lot of effort and money to establish and keep their brands fresh and focused in consumers’ minds.

B2B companies generally don’t support branding to the same extent. Their product offerings are called products. Perhaps they don’t support the branding concept because their offerings have generally been presented directly to buyers by sales people and not via advertising or shelf position. Yet, there are logos on pens, coffee cups, calculators, USB memory sticks and assorted stuff from various companies. What is the purpose of all this stuff? Proponents will argue that it builds brand by getting the business's name in the office of potential influencers and purchasers, where it will stay top of mind. But then, their materials, website, sales aids and more are all very differentiated and no clear message is delivered. If the name does stay in the customer’s mind, it is out of focus. Tom Peters will tell you that over and over.

Does branding even matter at B2B companies? Or is branding a waste of time and budget compared to "hard ROI" activities that can be proven to drive revenue? Some experts argue that branding plays no role in B2B marketing. Their arguments typically include:
* B2B buyers are rational decision makers (or a committee of rational decision makers) who are not swayed by emotional factors such as brands.
* B2B purchases are all about the relationship between the individual sales rep and the buyer; if the B2B brand means anything, it is created by the sales rep.
* B2B products do not really promote the product’s benefits. Those are a given. Price is the only thing that matters.
* B2B products are too complex to reduce to a tagline or ad.
* B2B companies sell to narrow audiences, so advertising to create a brand does not make sense.

While some of this is true, it is also misguided. I have led businesses in both consumer packaged goods and B2B and know from personal experience the value of establishing strong brands in both.

Here is why.
· If you sell on a cost basis, you will always be negotiating and competition’s price cuts are just as good as yours.
· You are ignoring the product development investments you have made and are not getting the value from them.
· You are essentially telling your customers that everyone is equal and that only the sales inducements matter. Can that lead to kickbacks and bribes of some sort? Yes!
· You have to over-invest in your sales force to do the proper job on the customers.
· You are reliant on your sales people alone. Given the transition from company to company of employees these days that puts your business at risk. And you are paying to do it!

On the other hand here are some of the benefits I have found of branding for B2B companies.
· Branding ties together all of the activities of your company and provides focus.
Branding will provide clarity to the decision process for the customer. Less time is needed to close the sale of an offering.
· Research shows that it leads to a greater willingness to try a product or service by customers.
· The clear focus enables you to “transfer” the goodwill from one product to another.
· Branding generates higher barriers to entry for competition.
There is a willingness to award a larger share of purchase requirement by customers.
· It makes products less sensitive in regard to price increases.
· It can insulate the business from movement of sales people.

AND

· It has been proven that branded products carry higher margins. HIGHER margins.

Here are three examples of companies doing B2B branding.
· IBM successfully created “eServices” to overcome the confusion its alpha numeric naming caused and was wasting millions of dollars. It took the company to market leadership in that area.
· Ingersoll-Rand re-branded itself as “IR” to leverage the IR master brand strategy across all of its divisions. It signaled that it was a diversified company comprised of industrial brands. More success.
· Intel uses branding not only for B2B but also for consumers to drive higher margins than competitor AMD.

It is not just large companies that are using B2B branding. Branding for all B2B companies is becoming even more important with the increase in sale via the internet. The impact of the personal touch of the salesperson is being reduced. More and more B2B companies are looking to marketing people with consumer goods experience to add to their selling arsenal. Smart move.

Branding doesn’t have to be expensive with multi-million dollar ads and campaigns. But it does have to be done right to generate an ROI that makes your investment successful.

If you lead a B2B company are you actively engaged in branding both your products and your company? If not why not?

Let us know how we can help. We have the B2B experience, the consumer packaged goods experience and the branding expertise. We can accelerate your business progress.

John

John Maver
President
Maver Management Group
(925) 648-7561
Maver Management

Four Commitments a Leader Should Make

Over the past year I have been part of the Executive Forums of Silicon Valley run by Sandy McMahon. It provides an opportunity for leaders of companies to meet together and discuss issues of common interest to the benefit of all. Sandy does a great job of bringing in guest speakers for best practices or on hot topics. He also provides weekly food for though via a newsletter like the message below in blue. It ties directly with the messages of several of my previous posts. If you want more information contact Sandy at smcmahon@ExecutiveForums.com 650-591-3855. You will be glad you did.

In good times and more challenging times, leaders have to lead. There are four commitments a leader needs to make to effectively lead.

To Envision
People who work in organization want to know “where are we headed, what is our goal.” It is the responsibility of the leader to determine the goal and to regularly and clearly communicate it. The leader who fails to create a vision is doing a disservice to those who work in the organization. If there is no goal, what is the future? What is the focus? Why toil to uncertainty except for a paycheck? People want to work towards something and for something that is bigger than themselves and the leader must provide this vision.

To Lead
The wisest leaders understand that they would never ask their subordinates to do something that they would not be willing to do themselves. In the movie “Saving Private Ryan” Captain Miller, played by Tom Hanks, earned and kept the respect of his men because he landed with them on Omaha Beach. Later, when challenged by his squad about the rationale for a mission to save the last remaining son of Mrs. Ryan, Miller used the goodwill he had earned to keep the mission on track. But the commitment to lead must be more than that. The leader must be willing to lead from the front. While Saving Private Ryan is fictional, contrast Captain Miller’s approach to General MacArthur’s approach in Korea. MacArthur never spent the night on the Korean Peninsula, instead returning to his own bed in Tokyo or sleeping on board a ship during the invasion at Inchon. The soldiers that fought under his command knew this and as a result, many did not respect him.

To Communicate
The leader cannot hide behind the desk, isolated in the office. Those that lead must not only be visible, but must communicate to those they lead. Chief among the responsibilities of leadership is to ask what people think. What are they seeing and experiencing within the company? How can we do the job better? The leader is often the most removed from clients, suppliers and employees, so seeking opinions of others is critical to learning. Tied to this is listening with intentionality to what is being said. Many leaders hear but don’t listen. Leaders must actively listen, seeking first to understand, then be understood. There is a quote that serves leaders well: “People should know what you stand for. They should also know won’t you won’t stand for."

To Learn
The leader must be open, willing and ready to become better - as a person and as a leader. This is done by growing, by being open to new ideas and concepts, and by being open to coaching by others. Someone who has a closed mind, who believes that they know all there is to know, is not a leader who will take any organization far. Being in charge and being open to growth does not stop with the person at the top. The responsibility of leadership means that the person at the top should be requiring the same commitment to growth from their direct reports. If those reporting to the top executive aren’t interesting in growing, what kind of message do those people send to those in their departments or divisions?

Sandy McMahon’s concepts are right on target. Being a senior executive is not a plateau. It is a continuous journey and its direction is determined by just how good a leader you are.

Once again, if you want more information on the Executive forums of Silicon Valley contact Sandy McMahon at smcmahon@ExecutiveForums.com 650-591-3855

Thanks Sandy.

John

John Maver
President
Maver Management Group
(925) 648-7561
Maver Management

Rotting From The Inside Out

The recession is upon us. The economists are debating the issues and given the political climate, the facts are being spun to make political gain. The truth is that many, many businesses and Americans are hurting.

We see it in the consulting world as companies are cutting back and becoming very defensive in their spending. Cost cutting is rampant and often without a solid plan that will protect the business for the future.

As we are working with our new clients, we are providing analysis of the current state of their business and the opportunities that exist for them. Often we see that while their business appears to be healthy on the outside, in fact it is very unhealthy underneath.

A local rancher shared some pictures with me of trees that illustrated this point. The first is a relatively healthy tree. You can see how solid it is.

The second picture is of a tree that is rotting from the inside out and will, in time, cause the death and collapse of the total tree.


What does this mean for you?

In its simplest terms, it means that you must find the “dry rot” and cut it out now. You can save the company by taking the right action. The “rot” could be in your product lines where you have allowed some to become vulnerable to competition or even unprofitable when expenses are allocated properly. It could be with your customers, as some of them no longer justify the expense to keep them. It could be with your processes that have become outdated and are nor efficient any longer. It could be with your organization where the development, care and nurturing of your managers has not taken place and you no longer have the appropriate succession plans or bench strength.

What can you do about this? Unfortunately, most senior executives have grown so accustomed and comfortable with the status quo that they are unable to see the issues clearly and the possible solutions appear to be so distasteful.

The rancher called in a consultant tree surgeon to identify the rotting trees that needed removal and to thin out the trees that needed thinning, even though they were currently healthy. The result was a much more productive environment and one that would thrive in the future.

Are you going to be ready when the recession ends to come out of it much healthier, or will you be weaker from the cost cutting and short term measures? Do you have a “tree surgeon” that you are using in your business?

Let us know if we can help.

John

John Maver
President
Maver Management Group
(925) 648-7561
Maver Management

Are you suffering from The Emperor’s New Clothes Syndrome?

Children’s fables are written as a vehicle to teach children valuable lessons about life. These lessons also have life applicability to adults and a direct relevance in business to senior executives and CEOs.

The Emperor’s New Clothes by Hans Christian Anderson is a fable about an emperor who allowed himself to be disillusioned. He was so caught up in what he wanted to see and believe that he didn’t see reality. In his case it was about clothing, but for you as a senior executive it could be one of many things.

For those of you who have forgotten the story, here is the thumbnail version. An emperor who was vain and cared too much about clothes hired two tailors who were crooks. They promised him the finest suit of clothes from the most beautiful cloth. This cloth, they told him, was invisible to anyone who was either stupid or not fit for his position. The Emperor was nervous about not being able to see the cloth himself so he sent his ministers to view it. They saw nothing, but knowing the issues praised the cloth. The Emperor allowed himself to be dressed in the creation for a procession through town. During the course of the procession, a small child cried out, "But he has nothing on!" The crowd realized the child was telling the truth and began laughing. The Emperor realized that the people were right but could not admit to that. He thought it better to continue the procession under the illusion that anyone who couldn't see his clothes was either stupid or incompetent.

You can imagine the results.

What does this mean to you as a senior executive you may ask?

“Everything isolates the CEO – be careful not to stifle dissent. Beware the Emperor’s New Clothes – Everyone wants to make you happy and not want to share bad news with you”

Kevin Sharer – Amgen CEO

Hard charging CEOs and senior executives often have this issue. Its not that your staff and the high priced big name consultant firms that you bring in want to deliberately deceive you. All, while they want to do good work, can have a vested interest in NOT exposing the flaws and possibly incurring your wrath. The farther down the line each project gets, the worse it becomes. The “halo” effect comes in to play and the flaws are overlooked. Since you are at least one or two people removed from the issue, it never gets to you.

I recently spoke with a CEO of a large manufacturing firm. His company had removed a popular product from the market that had lower margins in the expectation that customers could be convinced to trade up to new machines with better throughput and higher margins. Not so. The customers were unwilling to do this and stopped ordering. Given the production schedules, the intra-company reports didn’t show the problem. It wasn’t until a trusted employee took the CEO aside for a private moment and told him the truth. In essence, he became the young child in the Hans Christian Anderson story. The company suffered substantial losses. Several executives were asked to resign and extensive damage control was required with the customers.

Malicious? No. Just the CEO being kept out of the loop or given information that was biased to some degree.

This has to resonate with all senior executives no matter how closely you think you have your hand on the pulse of your business. In your case it isn’t a matter of pride like it was for the Emperor. Have you built up a support group that doesn’t provide full truth to you, since they want to look good in your eyes? Do you have big name consulting firms that want to keep the high priced contracts with you and therefore don’t really provide fully unbiased feedback?

Do you have someone that can provide you with unbiased feedback and is able to see the issues and opportunities that exist for you based on their extensive experience?

Do you?

John

John Maver
President
Maver Management Group
(925) 648-7561
Maver Management