by D. Kevin Berchelmann | Mar 23, 2017 | Brazen Leader, Executive Improvement, Kevin Berchelmann, Miscellaneous Business Topics
Albert Einstein once said that the definition of insanity is doing the same thing over and over yet expecting different results. Organizational Transformation breaks through that insanity. It’s not about working harder—I remember working with several clients during the economic challenges of recent years, and helping them realize that working harder can only “fix” problems when not working hard caused the problems in the first place.
And who was going to admit they weren’t already working hard?
Transforming an organization is not simply improving results, no matter how significant. Organizational Transformation is about being a different organization, not just a better one. It’s change on steroids… that “step-change” that leapfrogs an organization into an entirely different—and better—place.
Organizations wanting to adapt, change, or transform cannot force such change through simple technical modifications like reorganization, reengineering, or the like. You certainly cannot “save” your way there, nor create a budget or forecasting model that will do it. No, you can’t “spreadsheet” into transforming an organization.
This isn’t a quantitative exercise. If it were, I’d develop a do-all Excel spreadsheet for “Transforming Your Organization.” You would simply plug in your numbers, hit “calculate,” and out would come your winning formula for successfully transforming your organization. I would charge a bazillion dollars, have a private island in Tahiti, and wouldn’t invite any of you to come visit.
Don’t we wish…
To fundamentally transform an organization, you must first embrace a new way of leadership performance to better understand and address challenges and interpret business movements.
How does that happen? In my view, Organizational Transformation needs three elements to succeed:
A clear direction, with equally clear expectations and specific goals. If you don’t know—or can’t clearly articulate—where you’re going, don’t expect to see a throng behind you;
An engaged workforce; we’ll need massive quantities of discretionary effort, and the ability to discern positive directions without incessant oversight. That only comes from a workforce willing to do the right thing for the organization, with or without your immediate presence;
Changed leadership. To change a culture—we must start with leaders. That’s just the reality. Leaders capable of moving the proverbial needle closer to transformation must first transform themselves, focusing less on operational leadership and more on focusing on flexibility, collaboration, and “collective” leadership.
There’s nothing inherently simple about Organizational Transformation, but neither is it beyond the reach of any organization. It takes vision, fortitude, and resolve. In other words, you’ve got to want it—really want it—to get it. Start there, move forward.
Be Brazen.
by D. Kevin Berchelmann | Mar 8, 2017 | Brazen Leader, Kevin Berchelmann
Here’s an email I recently sent to my Houston-based clients. I’m adapting it for a nationwide article to the rest of my clients as well. Though it sounds regional (and in an extreme way, it is), the fact is that competent candidates are getting harder and harder to source nationwide.
More jobs were created in Houston between January 2006 and January 2007 than in any other metropolitan area in the nation, new figures show.
So, that’s great, right?? Maybe yes, maybe no…
A recent article shows Houston outpacing the nation in job creation, posting a 4.4% growth over 2006 (almost 250K new jobs), versus the nation’s ~1%. National unemployment is around 4.5%, while Houston’s is closer to 4.3% and DFW around 4.7%. Houston’s unemployment dropped almost 20% from 2007’s 5.4%.
Hardly 10 years ago, economists called a 6% unemployment rate “full employment.”
250,000 new jobs created in 12 months. These, of course, are in addition to jobs created through death, disability, retirement, and regular attrition/turnover. Business Services grew by almost 50,000 jobs, and Construction by almost 30,000.
Houston remains in the top 5 metropolitan areas for per-capita adjusted personal income.
What does this mean? It means we’re in a growing, vibrant, local economy. Certainly better than the alternatives, yet we cannot ignore how difficult this makes our efforts to source, recruit and retain competent talent. The competition for a dwindling pool of candidates is fiercer today than ever before.
What to do? Crying won’t help; begging is only marginally effective; whining is out, since there’s no unaffected peers with which to whine. Just for starters, I have 3 suggestions:
1. Create a longer-term talent management plan, including hiring, retention, and succession. Don’t wait until it’s operationally critical to start thinking about a new fill, replacement, or promotion.
2. Grow what you’ve got. If you spend the time, effort, and resources to hire and keep them, for heaven’s sake go the distance and develop them into a higher, better use for the organization.
3. Lead your managers, and make sure they have a long-term focus on talent management & development. You simply don’t have room anymore for the rogue manager that delivers performance while leaving a trail of bodies in his or her wake. Make them personally accountable for talent management within their responsibilities.
Not a do-all, end-all, but a start. This situation will continue for at least a couple more years, and may be our way of life for decades to come.
Let me know if I can help in any way.
Warm Regards,
KB
So, what do we do?? Throwing our arms up and complaining are probably not conducive to career advancement or professional success — many operational managers don’t yet “get’ the severity of the candidate problem.
Is there any answer except cussin’, commiseratin’, and drinkin’??
(Please feel free to respond to that question — use the “Ask Kevin” link on the left side of this page. I’ll publish any responses that look good for all to see…)
by D. Kevin Berchelmann | Jan 18, 2017 | Brazen Leader, Executive Improvement, Kevin Berchelmann, Miscellaneous Business Topics
Ok, this is a bit of a reach for a Leadership blog, but not really. Tipping — gratuities for service employees — has reached entitlement status, not much different than many current, regular employees.
This is interesting to me, as my wife and I are active consumers. We eat out frequently, do the Starbucks thing, and utilize service providers all the time in our daily lives — as do many of you.
Tips are extra – something on top of a bill for receiving something, literally, “extra.” I’ll tip 20-30% for outstanding service in a nice restaurant, particularly one that we frequent regularly. The level of service provided, then, is truly top-notch.
I’ll even tip 15% for mediocre restaurant service. If the server is neither abusive nor neglectful, I assume they are simply poorly trained, and will mention something to the manager – but still leave a respectable 15% tip. Let them be abusive or (in my mind) purposefully disrespectful, and fuhggetaboutit. I’ll leave the big “0” when necessary to make a point. No more scaling down from 15% or so.
We tip regular service providers, such as stylists, delivery people, etc., usually around 10%, depending on level of service and extenuating circumstances. Tips are both a reward for current service, and a notice of future tips for FUTURE service, so we use them judiciously.
But, and here’s the crux of this post, those tip jars in all the coffee joints and related places… are you kidding me??? I’m going to get out of my car, walk into the shop, wait in line, order and pay, then wait in line for my $4.25 triple-venti-nonfat-no-whip-mocha, and then put money in a tip jar??
What the hell for??
When pigs fly…
They recently opened a new Starbucks in my small hometown of Spring, Texas. The drive-in window – YES, THE DRIVE-IN WINDOW – has a tip jar on the little ledge that sticks out.
After giving my order, I tapped on the glass. The nice young lady slid open the window, and I said, “Excuse me, it seems you’re out of mints,” while gesturing toward that ridiculous tip jar.
IN THE DRIVE-IN LANE OF STARBUCKS!
And we wonder if this “entitlement” thing is real??
Cheers, and enjoy your coffee.
by D. Kevin Berchelmann | Nov 28, 2016 | Brazen Leader, Human Resources, Kevin Berchelmann, Miscellaneous Business Topics, Organizational Effectiveness
So, with CPIs hovering around 3-3.5%, and most surveys showing 3.5-4.0% increases in salary budgets for 2007, life’s a breeze, right? Just add the percentages into the Excel formula, press “Enter,” and you’re done, right?
Actually, wrong.
Enter “wage inflation.”
I’m going to avoid the ecomomist argument that higher wages do or do not cause inflation. That’s just not our relative concern here. What is clearly our concern is that our currently strong economic growth lowers general unemployment rate. This, theoretically, can cause businesses to bid up the price of labor and (hopefully) pass through those higher costs in the form of higher prices.
If only it were so easy. As the CPI shows general inflationary trends (e.g., our product/service cost increases), wage inflation is an additional cost on top of inflationary pricing. In other words, it’s a potential incremental cost.
Now, again theoretically, profit-conscious firms aren’t going to hire employees at a rate of pay more than his utilitarian or marginal value, or more than the additional revenue earned. Hardly rocket science, right?
The reality, however, shows that sometimes wages do increase faster than general inflation, particularly for individual functions, positions and/or jobs, rather than an overall employment market.
Enter compensation planning. It’s easy to get in a cyclical rut: analyze the jobs, survey the market, establish a range. Then adjust for infation a couple of years and start all over again. That’s simply not enough. We must pay close, specific attention to the inflationary movement of key positions within our organziations and adjust accordingly — or at least be acutely aware of the disparity. No reason for a surprise here.
Sometimes compensation planning takes foresight, analysis, and a real awareness of what’s going on in the world.
Don’t get caught napping…
by D. Kevin Berchelmann | Oct 2, 2016 | Human Resources, Kevin Berchelmann, Miscellaneous Business Topics
First, the fiasco in Chicago was averted — we should all stand and cheer.
For those living on Pluto (the new “non’-planet), Chicago attempted to vote in a “big box” minimum wage, a wage higher than what all other employers must pay, as a penalty for simply “being” a big box retailer.
Mayor Dailey vetoed the bill — his first such veto in his million years in office. Smart man.
Having said that, and against my personal beliefs and desires, minimum wage is going to change from its paltry $5.15 per hour. 10 states have enacted minimum wage laws in 2006 alone, making their state’s minimum wage some level above the Fed’s. That brings to 23 the total number of states with such legislation, and another 6 states have pending legislation awaiting November voting.
You can bet that all, or most, will pass.
Make sure you prepare accordingly, as minimum wage adjustments — particularly significant adjustments — impact more than just your unskilled entry workers. Minimum wage tends to be the benchmark by which other positions base their rates. In other words, you’ll likely face the need to adjust the rate ranges for multiple low and semi-skilled positions within your organziation.
by D. Kevin Berchelmann | Aug 23, 2016 | Brazen Leader, Executive Improvement, Kevin Berchelmann, Organizational Effectiveness
This is an area where mediocre leaders just don’t get it.
And because of their egocentric defensiveness, they lose a ton of credibility.
Without writing a treatise here, suffice to say that there are three very simple things that a leader can do to set himself apart (positively) from the pack: (more…)
