There is such a thing as bad publicity

CNN has published this article on just another twist in the “talent battle” that does not exist.  Read the article and the comments.

If you cannot hire people in this economy, in any economy, I don’t know if I’d trust you with watering plants or raking leaves. This is not just sad, this is a sheer disgrace for the woman in the  picture and, as a result, for the organization she works for. Bad publicity and I wouldn’t want her to be a part of my organization.

This is a great example of how awful hiring practices can be and a reason for massive underemployment.

Link to the article

Business cases and strategic value

For any business case, one of the most important questions you have to ask yourself is the following.

 

Does this proposal deliver strategic value?

 

What exactly does this mean? In July of 2008, I wrote an article for CNET, which I think you may find valuable in this context. It can be found at http://blogs.techrepublic.com.com/tech-manager/?p=550.

Five qualities to seek in hiring great employees

Based on my recent article.

Watch video

Business cases: what benefits to consider

One of the most common mistakes in business cases and proposals is the failure to consider and present all benefits.

Here is what you need to look for:

1. Quantitative (“hard”) benefits. These are benefits that can be translated into cash value. These usually arise as 

• cost savings
• new revenue
• expenditure avoidance, and so on.  

2. Capacity benefits. Some benefits result in freeing up of a resource, such as people or people’s time or office space. These benefits are often erroneously counted as “hard”.

In one instance, we once audited a business case where the authors (a well known consulting company) stated that the proposal will free up two hours a day for each of 80 employees making $25/hour. And so they stated that the case would deliver close to a million dollars a year in savings. On the same breath, they stated that there would be no reduction in workforce.

Well, this is just plain wrong.

3.Qualitative (“soft”) benefits. This is a diverse group that includes such considerations as

• strategic value
• adoption of best practices
• morale improvement
• rationalization of business processes
• image enhancements, and so on.

 

Are hard benefits more important than the soft ones ? Not at all! Although it is impossible to tell upfront, each organization will have its own set of prioroties at any given time, and these priorities, strategic and tactical, will define the weighting scheme (spoken or unspoken) which decision makers will utilize while making the decision.

Video: How to instigate and manage change

My article on instigating change has been turned into a video by CBS Techrepublic’s Editor-in-Chief, remarkable Jason Hiner.

Click to watch the video

The Art of Walking Backwards 2

Julia Gluck, whose Consulting course I took and liked, has emailed this note to me, having read The Art of Walking Backwards. Julia graciously agreed with my posting it here.

“I just read your latest newsletter. I found it very interesting that you are writing about the technique that my husband and I used in 1977 to develop our life plan. I didn’t have a name for it and now I do!

Having done it, albeit on a personal level, I can attest to the fact that it is really hard work and very worthwhile doing. “

Thank you, Julia!

The Art of Walking Backwards

This is a repost from my monthly newsletter, sent out early this week.

I may have shared with you in the past that I believe in stretch goals, objectives that challenge you, your team or your organization to venture to the brink of what’s perceived to be doable. This concept appeals to great many people but the key question that I am asked again and again is this: “It’s fine to think big and set challenging goals, but how do you make sure you reach them?”

Whether you are setting your organization’s strategy or seeking breakthrough in a tactical matter or looking for a leap in self-development, there is one particular skill that you need to master. I call it the art of walking backwards. Here is what it’s all about.

We all make plans in work and personal life. Traditional planning works reasonably well for objectives that we are reasonably familiar and comfortable with. Take, for example, new product launch, which your organization may do all the time. A product manager knows what it takes and how long the lead time is, which enables her to put together a roadmap, a project plan. Prior experience comes in very handy in this case.

Try to do the same kind of planning for stretch goals and you will find that experience becomes baggage, too heavy to allow any progress and too precious to relinquish. A consultant I know was once facilitating an executive retreat for a large residential builder. Profitability was the hot topic on the agenda and as it was discussed, it transpired that it would typically take all of 120 days to build a house. The company’s management couldn’t shrink the construction time any further and was looking for a miracle.

“What would it take to build the house in just 10 days?” asked the consultant, which prompted the audience to question his lucidity. He continued: “Well, we already know that it is impossible, so don’t say it again. If it were possible, what would have to happen to enable that?”

What happened then is this. The company did not hit the 10 day goal, but they managed 20 days, which they hadn’t seen in their wildest dreams.

And so is the key: you have to learn to walk backwards:

1. Set the goal (e.g. own 1/3 of the East Coast market, acquire 100 new customers by 2010, reduce product development cycles by 40% and so on)
2. Walk backwards from the desired future state and determine what needs to be in place to enable your goal.
3. Capture all critical issues that need to be addressed: facilities created, people hired, R&D, systems deployed, etc.
4. When you reach the present state, you should have in front of you a list of future projects. Prioritize them and run as a program.
5. Maintain the momentum.

 This is a very powerful technique that not only helps to get over that “Impossible!” or “It will never happen!” reaction but also challenges your people to find solutions to difficult problems. If, as many other executives, you are looking to spark the spirit of innovation within your organization, this is a great way to do that.

 Sometimes, walking backwards is a sure way to get ahead.

The Dell-Perot thing

And so, now Dell does it, buying IT services company Perot Systems for almost $4 billion. The 68 % premium is high, especially by the year 2009 standards. They must have liked what HP has done with EDS.

There will be enough financial analysis coming out in the next few days to prevent me from whipping up a model in Excel, but the question I have is this. How does it make sense strategically?

It’s not a big secret why this foray into IT services has taken place. Hardware margins are razor thin, while those for services are nice and plump. Cannot argue with that. And so, we have yet another computer company that has a diversified offering of systems, peripherals and services.

Remember when… when Dell was special. Build to order was the unique modus operandi, which was cool and lucrative until everybody else decided to do exactly that. Until Michael Dell decided to take a break. Until customer service (and the stock) went downhill so fast, you would think they were doing it on a dare.

Since then I can never be sure about Dell’s strategy…it seems to run a range from tentative to elusive. What’s in the cards for Dell? I don’t know, although I have a good idea what’s in the cards for Perot’s employees.

The little of Dell’s stock I still own today I will sell tomorrow. Sorry, Dell, I just don’t see the point.

Sniffles and telecommuting

If your organization has invested into a technology which allows people to work remotely, you may be better positioned to deal with the flu season than those who haven’t. This is especially important in the face of the impending H1N1 pandemic.

To prevent the infection from spreading, we would ideally like to have everyone who exhibits the typical flu or cold symptoms to stay away from the office for as long as the symptoms persist. It is rarely attainable if people cannot be as (or, nearly as)  productive remotely as they are in the office. There is also this fallacy of guilt that makes them show up for work while coughing their lungs out and with fever.

If a telecommuting option is available, this is not a problem and with right policies in place, your organization may be able to minimize the impact.

A litmus test for corporate HR

 

Jack has been with the company for almost ten years. On a Thursday afternoon, he was called to the HR, where he was informed that his services were no longer required. Not that he’d done anything wrong, but the economy is tough, you know. A security guard was called to escort him to the door like if he were a convict. His personal effects would be couriered to him later.

Elsewhere, a company’s new CEO reduced the middle maangement layer by half, sending some 120 employees home. Here is how it looked from inside: a phone in a cubicle rings.  After a 30-second conversation, its owner stands up and makes his or her way to the HR, never to return. The whole organization is terrorized for days. No explanation follows.

Yet some other place, every Friday at 3pm for about a year, names are called over a PA. Their holders are to report to a meeting room. Everyone knows that they are gone. This goes on for a year. Morale is at its worst.

Here is my advice to you if you are considering taking a job offer or are assessing the state of the HR department within the organization. Before looking at their promotional materials, policies or initiatives, look to understand how they go about letting people go. That’s the basic litmus test.