Tag Archives: threats

What Do G.M. and the V.A. Have to Do with Your Organization?

By Karen Utgoff

Public domain

Public domain

I have been keeping my eye on the disturbing news about General Motors and the U.S. Department of Veterans Affairs. Recent reports describe deep dysfunction that appears to have resulted from failing to both acknowledge and then address systemic problems — some of life-and-death significance. While both organizations are huge and complex with many layers of bureaucracy, leaders of smaller, simpler businesses or nonprofits should not assume such problems are entirely a result of size and scope. Here are some thoughts on spotting and preventing such situations in your own business:

Recognize that no one is immune. Individual weaknesses differ but we all have them. Understanding your individual (and team) susceptibilities can help you to nip a potentially alarming systemic problem in the bud rather than assuming it away as an aberration.

Watch for symptoms of trouble brewing. Most business problems are made worse by ignoring them. Be alert to early warning signs of problems in general. This will help you prevent difficulties of titanic proportions as well as smaller ones that can interfere with routine operations and performance.

Create a quality-focused, high integrity-based culture. A culture that values honesty and questioning assures employees that they will be listened to — and not punished — for calling management’s attention to potentially significant problems. A culture of “see no evil, hear no evil, speak no evil” is dangerously disrespectful of your employees and their moral compasses. If you are not sure how to characterize your culture, here is one approach you can use to get a fresh perspective on it.

Manage by walking around. The leader who regularly walks among, talks with, and listens to employees throughout the organization is more likely to learn about problems individuals on the frontlines are seeing. Don’t stop there. Follow up on the information, demonstrate that you want to know about and will act to solve problems. Then, communicate with employees about what you’re doing and why; consider publicly thanking the individual(s) who brought the issue to your attention.

Encourage individuals to do the right thing. Do job descriptions, financial incentives, and other recognition motivate employees to bring such issues into the light of day or to sweep them under the rug?

Lead by example. None of the above will make a difference if your actions don’t match your words. This is as true day-to-day as it is when a crisis hits. If your employees see you cutting corners with products or product safety, they will get the message that they can — and perhaps should — do the same.

Start now. If you are concerned that significant problems are being overlooked, start to address them now. Ask questions and show that you would rather have accurate but unsettling answers than false comfort. It will take time and effort to overcome the status quo but keep at it.

Learn from the mistakes of others. To start, check out “Top Investigator Has Blistering Criticism for V.A. Response to Whistle-Blowers” (NYTimes, June 23, 2104) and “GM Recalls: How General Motors Silenced a Whistle-Blower” (BusinessWeek, June 18, 2014). Two key takeaways:

  • Problems take time to develop. In both cases, there were multiple warning signs over many years with many missed opportunities along the way.
  • People were trying to do the right thing but couldn’t.

 

If you do all of the above will you be immune from the sorts of crises that G.M. and the V.A. are now experiencing? No (remember item one), but you will be more likely to catch and fix significant problems with a minimum of injury and expense.

 

© Copyright 2014 Karen Utgoff. All rights reserved.

What’s So Special about You?

I could not have anticipated that a taunt I first heard in grammar school would be a question I’d later ask business owners in all seriousness. Businesses are most successful when they build upon their unique strengths and take appropriate steps to mitigate critical weaknesses.  But recognizing your strengths and weaknesses is easier said than done. Here is an overview.

While it would be impossible to enumerate all attributes an organization might have, the following list will get you started.  As you consider your organization’s strengths and weaknesses, please be absolutely honest.  It’s easy to think only in positive terms, to see only potential or to obsess over weaknesses. However, giving in to one-sided thinking will not result in actionable information. Better to recognize any areas that need attention as soon as possible so that you can address them before they negatively impact your bottom line. On the flip side, don’t fail to recognize where your organization shines. This may lead to discovery of competitive advantages that will help your business to leap ahead.

Expertise/industry savvy and contacts

  • Unique capabilities – what can your organization can do/supply that is not available from competitors?
  • Experience/knowledge of principals and staff – do you offer customers an extraordinary level of expertise or experience?
  • Industry ties – do you belong to and actively participate in industry associations?
  • Influencers – do you regularly engage in two-way communication with industry influencers?
  • Media – would it be likely for the media to contact you were there to be a breaking story in your industry?

Customer base

  • Customer satisfaction/fans – do your customers refer or recommend you to potential new customers?
  • Loyalty – do you receive repeat orders from customers?
  • Diversification – do you have multiple customers in a variety of industries?
  • Are your customers financially stable?
  • Do your customers expect you to compete on price alone?

People

  • Leadership and top managers – is your leadership team complete, respected, knowledgeable and well connected?
  • Overall, do employees have all the skills and qualifications they need?
    • Skill level – does your organization ensure that staff is well trained, up-to-date and knowledgeable?
    • Dedication to quality and customer service – is your organization’s definition of quality and customer service measurable, clear to all members of your staff and considered in every customer interaction?
    • Licenses, insurance and certifications – do you/your staff have all relevant licenses, insurance and certifications?
  • Succession plan/pipeline – do you have a clear succession plan and the means to find and attract sufficient new employees?

Suppliers/raw materials

  • Stable – are your suppliers financially stable?
  • Raw materials – is it likely there will be an adequate supply of raw materials available at a reasonable price?
  • Bench strength – do you have multiple suppliers of key goods or raw materials?

Products/services

  • Are your products and services distinct from those of your competitors?
  • Do you have exclusive agreements to sell products and services in your market?
  • Do you offer a complementary mix of products and services not found at the competition?
  • Is demand for your products and services seasonal and/or tied to events beyond your control? (Weather, subsidies, tax incentives, etc.)

Intellectual property

  • Patents/trademarks – do you own and protect patents and trademarks?
  • Marketing collateral – does your marketing collateral engage and inform your customers base?

Infrastructure

  • Convenience to customers/suppliers – are your organization’s locations accessible to both customers and suppliers?
  • Traffic – if it’s relevant, are you located in a space (either physical or virtual) where your customers are likely to congregate?
  • Visibility – is your organization easy and convenient to find both physically and virtually?
  • Processes and procedures – do you have efficient, documented processes and procedures?
  • Systems – do your systems (computer, telephone, forms, inventory management, etc.) effectively support customers and staff?
  • Technology – do you have all of the industry-specific tools and technology you need to compete for business?
  • Overhead – is your operation efficient?

Financial

  • Financial strength – is your organization on sound financial footing?
  • Banking relationships/access to credit – do you have on-going positive relationships with one or more banks that would be willing to extend credit?
  • Positive cash flow – overall, is your cash flow positive?
  • Terms – are you offered and do you take advantage of suppliers’ best possible terms?

Culture

Culture significantly influences an organization’s ability to attract and retain employees, respond to problems, and to provide a great customer experience. For more on this, read Karen Utgoff’s recent post on looking at your organization’s culture with fresh eyes.

It is often illuminating to involve customers, suppliers and staff in exploring many of the questions above. You can learn a lot by understanding their views. Also, what might have been accurate in the past may not always be true. Support your assessment with facts whenever you can. Refresh this information periodically, more often if your circumstances (market, customers, etc.) are in flux.

Understanding your organization’s strengths and weaknesses will give you a better understanding of internal capabilities. To formulate a strategy, these need to be considered in the context of the external environment. For more on doing so, see this post by Karen Utgoff on sorting out opportunities and threats.

© Copyright 2014 Laurie Breitner. All rights reserved.

What’s your SWOT Spot?

By Laurie Breitner

In real estate the old saw is that the three most important things are location, location, location. In business — especially a small business — it’s focus, focus, focus. My colleague Karen Utgoff and I have been encouraging business owners to think this way for years, each from our own perspective.

Karen is a market strategist and often looks at businesses through that lens. That is, what are the opportunities and threats that could impact a business? As an operations person, I have a different viewpoint. I consider a business’ strengths and weaknesses. Of course each of us does that within the context of the business’ specific mission and target market. When we work together, we joke that I handle the S-W while she deals with the O-T. It’s our effort to bring a little humor to the topic and it usually gets a laugh.SWOT spot

So, expect to read about ways to determine and operate within your organizations’ SWOT spot — the place in your market where you can take advantage opportunities, mitigate threats, utilize your strengths and minimize your weaknesses.

 

© Copyright 2013 Laurie Breitner. All rights reserved.