| Book Reviews by Tim Bernstein |
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Becoming a Coaching Leader, The Proven Strategy for Building Your Own Team of Champions
By Daniel Harkavy
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Daniel Harkavy, CEO and Head Coach of Building Champions International, draws on years of experience mentoring clients in business and their personal lives in his book, Becoming a Coaching Leader, the Proven Strategy for Building Your Own Team of Champions. With a forward by Patrick Lencioni, the most interesting sections of the book deal with less traditional business subjects and more with the non-tangible, soft-side of leadership development; seeing the big picture of your life and developing vision and mission. Though typical results oriented, “fix it now!” type “A” clients often want the coach to focus on “fixing” their business problems (and increase the bottom line), the book's central theme emphasizes the importance of a holistic approach. Harkavy walks the reader through a strategic progression, from "finding your life" to refining your business vision and business plan. One section I resonated with is on priority management, where Harkavy guides the reader to minimize reacting to the issues in their lives and focus on proactively accomplishing their goals. Utilizing what the author calls a Daily Routine Time Blocking Schedule, he sets the parameters for the reader to divide the day so that they're always maximizing their time on high-value activities.
Becoming a Coaching Leader shows business and non-profit leaders at all levels why they should add "coach" to their leadership toolbox and scope which, in turn, can lead their teams to greater effectiveness, both personally and professionally. This book equips the potential coaching leader with the skills, disciplines, and knowledge to turn external rewards focused teams into cohesive, collaborative and successful growth cultures. Daniel Harkavy shows you how to move beyond the theoretical to the very practical "how to" of coaching and how that can benefit both the bottom-line returns and personal satisfaction. |
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WHICH COMPANIES WIN IN AN ECONOMIC DOWNTURN?
By Larry Smalley
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From 1945 to 2007, the US experienced eleven recessions. Their average duration was ten months, peak to trough (see http://en.wikipedia.org/wiki/List_of_recessions). Over 500,000 companies failed in each of the recessions that have occurred in the U.S. since 1990. As a result of the last recession from March to November 2001, bankruptcy filings from 2001 to 2003 were up substantially over prior years (+14%, +8% and +7%). The current downturn impact is unknown; many are bracing for hard times.
Shrinking profitability and pressure on operating capital means some players will survive and perhaps thrive, as others are driven out of business or retrench substantially. (See below, Impacts of recessions are not all bad). The conventional approach for dealing with recessions is to cut expenses to provide short-term relief, but this may also cause long-term damage to growth and competitiveness. Recessions rearrange the competitive landscape more than boom times do. Gains or losses show up early and are likely to last.
Who wins? Players with balance and agility.
Which businesses will survive a downturn, and which will fail? How should companies position themselves to capitalize on the future rebound when it occurs? What are the lessons learned from previous economic slumps?
Research and past experience indicate that the companies that exhibit balance and agility will be the real winners (see below, Good reading on surviving the slide). Firms need to promote their business in spite of difficult times and to prepare to capitalize on the future recovery through smart investments. Here are three key strategies for success:
Manage fear and uncertainty (for self and others). The fear associated with this recession is palpable. Business leaders need to help customers, employees and all stakeholders stay focused on the future and to remain positive in the market. (See below, Helping others to keep that positive attitude). As common wisdom observes, “Worrying is like a rocking chair. It gives you something to do, but it doesn't get you anywhere.” Recently, Paul Levey, CEO of Beth Israel Deaconess Hospital, held town meetings with employees to find a way to spare workers from the layoffs. Employees provided many constructive ideas, helping to slash the number of layoffs from more than 600 to about 150.
Hone and adapt business model to the market. Leaders need to confront the external realities, realign financial targets and initiate new internal activities to address the market. Winners maintain advertising to attract new customers and limit traditional discounting since that can damage the brand. Recent case in point: Mervyn’s vs. Kohl’s. Mervyn’s was not able to adjust its model fast enough as consumers moved from mid-priced to low-end retailers. Mervyn’s was liquidated. Conversely, Kohl’s improved inventory, and management lessened the dependence on credit that is now less available. Kohl’s balance sheet and stock price are stronger than most of their peers.
Plan and react effectively to changes. Frontrunners listen to their customers and continually drive their unique value proposition. They cultivate innovators throughout the company and launch low-risk experiments. They concentrate investments in innovation on truly radical ideas—not on updates or add-ons. It may seem counter-intuitive, but a slump presents a perfect time to enhance the teamwork and leadership skills needed to take advantage of the upturn. Consider Pets.com vs. Amazon.com. Pets.com was part of a “dot com” bubble and was not able to carve out a true value proposition—shipping 20 pounds of clay kitty litter across the county makes little sense. The company is now history. Amazon.com is legendary for listening to its customers and offering a great customer experience and value. It has become one of the strongest internet brands.
How to make it happen? Clear perspective and planning.
Companies navigating the recession must:
- Diagnosis the situation—Project the impact of the decline on their business, now and in the future.
- Create a blueprint—Develop the strategies and tactics to be one of the winners.
- Engage the team—Implement ideas to best position the company for survival and future growth.
In summary, winning in an economic downturn is all about focusing on the future and harnessing a creative mental approach.
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| About the author: Larry Smalley is a management consultant and facilitator specializing in strategy formulation, change management and leadership development. You can contact him at lsmalley@intellistart.net or by visiting www.intellistart.net. |
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Impacts of recessions are not all bad…
- Shrinking profitability and growth as revenue declines and pricing pressure increases.
- Pressure on operating capital as credit becomes less available.
- (Positive) Possible lower costs of goods or facility costs as providers cut prices.
- (Positive) More and better talent available as unemployment rises.
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Good reading on surviving the slide… |
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Two must-read articles (for reprints, call HBS Publishing at (800) 545-7685 or go online to http://hbr.harvardbusiness.org/):
- Pearce, II J. A., & Michael, S. C. (2006). “Strategies To Prevent Economic Recessions From Causing Business Failure.” Business Horizons (2006) 49, 201–209.
- Kaplan R. S., Norton D. P., et al. “Unconventional Wisdom in a Downturn.” Harvard Business Review (December 2008).
Two books to provide more depth:
- Bossidy, L. & Charan, R. Confronting Reality: Doing What Matters to Get Things Right (2004). The book presents a model and process to help leaders learn business savvy – to recognize the position of their business in wider external realities and to take action based on that understanding.
- Hart, R. Recession Storming: Thriving in Downturns through Superior Marketing, Pricing and Product Strategies (2008). There are over 100 marketing strategies from 80 companies from 5 recessions and 40 industry downturns to squeeze more revenue from customers, increase margin by resisting price pressure, and expand into new markets.
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Helping others to keep that positive attitude… |
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- Say, “Thank you,” for everything, big and small. Express your gratitude every day.
- Do a personal evaluation. On a scale of 1 to 10, where would you rank your attitude? Acknowledge that the current attitude can affect the way you behave and give it the attention it needs to improve it.
- Practice positive thinking. The world is a reflection of that attitude, a self-fulfilling prophecy. Your perceptions and meanings will determine how you do your work, treat others, and deal with challenges that come your way.
- Evaluate the influences. If you want to change your behavior, you have to start by changing your influences or input. Minimize negative input (people, articles, etc.) and seek out positive influences.
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HOW IS THE SEARCH BUSINESS THESE DAYS? |
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Like the economy, the search business has seen better days. We are receiving an abundance of resumes from qualified people but there are limited jobs available.
We’re finding that some companies with positions to fill have let people who weren’t up to the task, go during these difficult times and are looking to replace them with innovative, strong and visionary leaders who adapt to today’s reality, maneuver through the challenges and seize opportunities. A few companies have taken advantage of the marketplace by making new acquisitions at fire sale prices and now need leadership capable of developing and growing the acquisition.
More… |
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AVOIDING A “BAD” HIRE
…due to a misfit with the corporate culture |
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When filling a senior level position, it is often not that hard to find candidates with the right experience – in today’s job market there are many competent executives available. However, having the right experience and skills does not guarantee success in a particular position. In fact, the largest reason anyone fails in a job is not ability…it is attitude.
More… |
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