Passion, People and Principles
post # 493 — January 25, 2008 — a Managing, Strategy post
I’m thinking of writing a monograph or a book on compensation systems. As part of it, I began a list of some of the things a compensation system needs to accomplish. It’s a long potential list of objectives — too long, since no one system can accomplish all too many objectives – and many of them are contradictory!!
Criteria for a good compensation system:
- It encourages individual initiative
- It encourages working for the good of the whole
- It helps people improve, not just rewards them when they do
- The decision process is seen as based on all the real facts (i.e. thorough)
- Inputs to the process are received from multiple constituencies (group and project leaders, clients, subordinates, peers.)
- The decision process is perceived as fair
- The criteria for differential rewards are well understood at the beginning of the year
- At the end of the process, people know why they got what they got
- At the end of the process, people know what to do (and how to do it) next year to get higher rewards
- It encourages people to work for the long-term, not just latest year
- It provides an incentive (encourages people) to stay
- It can reward a variety of contributions necessary for the health of the firm
- There is an appropriate return to those who built the business
- There’s a chance, over time, to achieve the highest levels (i.e. no permanent second-class)
- It does not lock-in high rewards for past contributions that are not sustained
- The system discourages “cruising” (those on a high reward no longer being energetic)
- Timing of rewards does not put firm’s cash position at risk
- The system does not allow or encourage “gaming” (such as hoarding credit)
- Individual superstars can obtain a premium reward
Which of these items do you think are most critical? Least? What have I left out?
post # 491 — January 23, 2008 — a Client Relations post
Mike Schultz of Rain Today.com sent this request:
We are conducting our next major RainToday.com and Wellesley Hills Group benchmark study on Pricing and Fees in Professional Service Businesses and we would like your input. Please take 20 minutes to share how your firm approaches pricing its services.
You can access the survey here.
As a thank you for your time and input, upon completing the survey you will receive the complimentary RainToday.com report of your choice from the list of our most popular reports below:
- The Professional Services E-Guide To Online PR (PDF)
- How To Write And Market A White Paper E-Guide (PDF)
- How To Become A Thought Leader E-Guide (PDF)
- How To Set Appointments Through Cold Calling E-Guide (PDF)
- Marketing Strategy, Planning, and Budgeting for Professional Services (Webinar Recording)
And, feel free to pass the survey on…your colleagues can receive a free report as well.
Thank you for helping make this research possible. I appreciate your time and input!
post # 492 — January 21, 2008 — a Strategy post
Here’s a question from Mike Spack in St. Louis Park, Minnesota:
“I was talking to a colleague about his employer’s strategic plan. They are a 120-person science/engineering consulting firm located only in Minnesota. They are 100% employee owned. Their plan says that no more than 10% of the firm’s receipts should come from any single sector. This strategy blossomed from a time 10 years ago when the firm only worked in three sectors and almost went under when one of the sectors dried up.
“They now work in about 25 different sectors, many of which don’t even have potential for cross-selling. The interesting thing is they are attracting talented people in a broad range of specialties to work for them. Many of whom have come from firms that have a small niche. The idea of having a broad client base appeals to many engineering / science types, who are not naturally risk takers.
“This seems to strongly go against your beliefs on developing a consulting firm. You seem to advocate having a deep, but narrow focus which requires strategically choosing who you will consult for. Am I missing something? Is this a viable business strategy for them since they are 100% ESOP and they are “all in it together?†Can they make this work or are they doomed?â€
****
Mike, I don’t have an absolute distaste for diversification, but I *do* believe in “depth, then breadth.â€
If you’re going to have a portfolio of client sectors that you compete in, you still have to make sure that you are a credible “specialist†in each. It’s not enough to say “we can do that, too.†If you’re going to attract clients, you usually have to convince them that you REALLY know the special circumstances of their sector, and are not just one more generalist.
So, this raises the question of how many sector specialties you can have and still be seen as an informed expert in that sector. I don’t know the details of the engineering / science business (since it’s not one of MY specialties, ha-ha), but the numbers you give do make it seem like your friends’ firm has swung from one extreme to another. You say they have 120 people, competing in 25 sectors. That seems like “a thin layer across a lot of things†to me. I’d guess that, in many of those sectors, there are more focused competitors who might persuasively convince clients that they have a special interest in their sector and a special capability to serve them.
I don’t disagree that many professionals like to work across client sectors (it’s fun as well as risk-diversifying), but you have to balance what the provider would like to do with what the clients will pay for.
Does anyone else out there have a perspective on this?
Yesterday, I had the interesting experience of being interviewed about STRATEGY AND THE FAT SMOKER on ABC News. There’s a 4-minute “live-to-tape†web-version of it here.
I was asked to cover the basics discussed in the book, so if you’ve been following my work, you won’t see new insights revealed. However, there’s some fun to be had looking (a) how the TV producer spliced in some footage to go with my comments, and (b) seeing me — after all these years — revealing some nervousness.
I do better in front of real human beings rather than staring, all alone, into a camera in a darkened room. I’ve been through the experience before, but I could still use a bit more practice. A pity that there are no chances to re-shoot on live television!
The second episode of my new podcast series, Strategy and the Fat Smoker, is now live and available for download.
This series is dedicated to exploring the themes found in my new book by the same name. Each chapter will be accompanied by an executive summary ebook covering the same material. I encourage you to forward these to friends and associates who may be interested in the topics covered. If you are already a subscriber to my podcast feed, this pdf will be available in your itunes.
This second episode, entitled Strategy Means Saying No, talks about one of the hardest things for a professional to do: turn down work. Everyone has their excuse as to why they shouldn’t have to, but undeniable fact is that you cannot build a differentiated practice or reputation by being a jack of all trades.
NOTES FOR THE EPISODE:
00:40 — Strategy is deciding whose business you are going to turn away
02:40 — Wickham Skinner’s concept of the focused factory
05:10 — Courage: The only competitive advantage
08:06 — Excuses And Risk Aversion
12:04 — Managing for the strategy, not the cash
You can download Strategy Means Saying No or sign up to receive new Business Masterclass seminars automatically with iTunes or other podcast players. My seminars are always available for download at no cost.
Lucy Kellaway is a (terrific) columnist on management for the Financial Times. She has written a very amusing column about her New Year’s resolutions, based in part on some of my ideas in STRATEGY AND THE FAT SMOKER. You can listen to Lucy reading her column in this podcast. It’s fun — give it a try!
post # 487 — January 14, 2008 — a Managing post
One of the best books on mentoring that I have found is “The Elements of Mentoring†by W. Brad Johnson and Charles R. Ridley.
Here are some of their chapter headings and subheadings:
Getting to Know Your Protégé
Spend time
Identify and communicate strengths and weaknesses
Allow fears and emotions to be discussed
Expect Excellence
Set high expectations and communicate clearly
Model what you expect of others
Demonstrate confidence
Affirm, Encourage and Support
Show that you value them
Instill confidence
Kindly shed light on unrealistic expectations
Provide Sponsorship
Discern their dream
Help them with first steps
Use your status to get them opportunities
Get them to function on your behalf occasionally
Teach and Coach
Clear Instruction on expectations, roles and functions
Story-telling and metaphors
Help people understand organizational politics
Offer Counsel in Difficult Times
Provide insight, not necessarily answers
Listen, reflect feelings clarify alternatives
Validate feelings
Protect When Necessary
Recognize that protégé will occasionally suffer personal or political problems
Use protection sparingly
Stimulate growth with Challenging assignments
Nurture Creativity
Encourage innovative thought
Safe haven to experiment
Model innovation
Provide Correction — Even when painful
Confront negative performance or behavior
Help with ideas — don’t just criticize
Narrate Growth and development
Discuss milestones openly
Self-Disclose when appropriate
Accept Increasing Friendship and Mutuality
Model work/Life Balance
Display Dependability
****
What’s your experience been with best practice in mentoring? Have you experienced organizations where it works well? What is the secret to effectiveness at this?
Two weeks ago, I published a post indicating that an ebook of Strategy and the Fat Smoker was now available. The response to the new book, both in hardback and ebook versions, has surpassed many of my expectations.
A number of you expressed concerns that the ebook could not be printed, but only viewed on a computer screen, describing this as a major inconvenience.
So, in my ongoing efforts to be responsive and client-centric, I have asked my tech team to make adjustments to the ebook so that it CAN now be printed out. You can now purchase it here in its printable format.
If you have already bought a copy of the ebook and provided an email address, you will automatically be sent an updated copy that can be printed. If you purchased a copy and do not hear from us in the next few days, send us an email at The Spangle Press.
Thank you for your continued support.
post # 483 — January 8, 2008 — a General post
It is already 2008 but I would like to pause for a moment before we move forward into the New Year. As you know, I truly appreciate and value the ways with which you share your thoughts and ideas. The last twelve months have been extremely stimulating and your contributions have helped shape the ideas and projects that grew out of this blog. My new book, Strategy and the Fat Smoker, is now officially out and the coming months promise to bring new possibilities for exchanges and discussions. Although the list below concerns the last three months, I would like to extend a sincere thank you to everyone that has contributed, in one way or another, to a successful year.
Commentors
Aina-David Adewunmi, Harry Alexander, Antoine Henry De Frahan, Dale Arseneault, Alex Bell, Connie Bensen, David J. Bilinsky, Wally Bock, Kathleen Bradley, Pawel Brodzinski, Paul Brown, Anita Bruzzese, Duncan Bucknell, Jim Bullock, BOB COFFEY, Shawn Callahan, Sean Campbell, Leading Change, James Cherkoff, Andrew Chiu, Alison Clayton-Smith, John Corr, Stuart Cross, Dan, Daniel, Mike DeWitt, John Dillard, George Dinwiddie, Dominique, Jim Donovan, Stephen Downes, Francis Egenias, Heidi Ehlers, Ron Evans, David Ewing, Brad Farris, 360 Degree Feedback, Steve Ferrara, Ken Flowers, Jordan Furlong, Galba Bright At Tune Up Your EQ, Gareth Garvey, Gautam, Alexei Ghertescu, Mahesh Golani, James T Gold, Michelle Golden, Gowri, Charles H. Green, Peter Gwizdalla, Ford Harding, Ted Harro, Joel H Head, Meredith Hernandezon, Scot Herrick, Lori Herz, T Hose, Andrea Howe, Dan Hull, Kami Huyse, Shama Hyder, Ida, Illya, Maz Iqbal, Carl Isenburg, Jaime @ Fitzgerald Analytics, Amyn Jassani, Jennifer, Timothy Johnson, Jon, Jay K, K.Sako, Anthony Kearns, Kelvin, Shaun Kieran, Cary King, David Kirk, Ed Kless, David Koopmans, Lance, Natalia Ledneva, Joe Leverich, Diane Levin, Susan Cartier Liebel, Ian M, Scott M, Steen Madsen, Nick Mallett, Maria, Maria Marik, Marina, Arnoud Martens, Chris Martin, Scott McArthur, Nick McCormick, Jim McGee, Bob McIlree, Scott Messinger, Michael D. Haberman, Mike, Karen Morath, Michael Netzley, Justin North, Sameer Panchangam, Parvathy, Steve Pashley, Bill Peper, Florin Petean, Mehmet Poyraz, Rachel, Prem Rao, Gareth Reeves, Beth Robinson, Johanna Rothman, Stephen Ruben, Samantha, Jason Schoolmeester, Bryan I. Schwartz, Paul Shillam, Carl A. Singer, Mike Spack, David Speight, Jim Stroup, Ted Demopoulos, Blogging For Business, Jeff Temple, Charlie Thalheimer, Brian Tingley, Tom “Bald Dog” Varjan, Keith C Vick, Ashutosh Wakankar, Mike Wallace, Susie Wee, Jason Whaley, Stephen M. Worrall
Trackbacks
Golden Practices
idealawg
Juggling Many Hats
StrategyDriven (also: here)
The Employee Factor
I owe an apology to many of you who were surprised to discover that, even though I announced a publication date of January 2, Amazon currently lists my book STRATEGY AND THE FAT SMOKER as not being available for 4 to 7 weeks.
As best I can tell, this is an initial (and, I’m assured, a temporary) inventory problem based on the fact that neither the printer/distributor nor Amazon were ready for the high volume of orders for a self-published book on the day of publication.
Shipments have now been dispatched to Amazon, Barnes & Noble, 800CEOREAD and the real-world bookstore distributors, and (again, I have been promised) should be available for overnight delivery orders in a few days.
A I continue to learn, there IS a complete pre-set system for books published by the mainstream publishing houses, and while there are many advantages to self-publishing, it does require that you recognize that you are asking a lot of people in the total supply chain to depart from their normal assumptions and methods of operating.
For any of you that were inconvenienced by this delay, please accept my apologies.
