BizStratBlog2

Top Ten Reasons I Live in Rochester

I'm a big fan of HGTV - the cable channel that does all the home makeovers and house hunting shows. Somewhere in that jumbled mix of how to create the perfect kitchen or bathroom, or how to buy the perfect house, is my dream home.

And, it's located right here in Rochester.

Why? Well, let's take a particular show that was on last night called "National Open House" all about getting the most bang for your buck. The question was - where in the U.S. can you get the most house for $250,000, all the way up to $1 million?

I can only tell you that the examples were outstanding and impressive - but no better than homes right here in my hometown. For the low price of $250,000 you can get 1800 square feet in Minnesota, or 1000 square feet in Princeton. OR - which they didn't show, of course, 2500 square feet here, in Rochester. (square footage is estimated, from memory - but, I bet I'm pretty close to accurate)

(Read on for the top ten reasons)

Knowing When to Fold

One of my hobbies is playing poker. There is a great deal of truth to that silly song's refrain, "you gotta know  when to hold 'em and know when to fold 'em." One sign of a poor player is not knowing when to fold a losing hand. Throwing  good money after bad.

A professor of mine often talked about "blazing insight into the obvious." It is the antidote to individual and organizational denial. Olin Corporation, my first employer, got into the aluminum business at the worst possible time. In spite of huge losses, the company kept feeding the fire. When a new president took over, he told the Division VP, "You have six months to sell it or I will shut it down." It was sold.

Recently, my home town of Rochester, New York, made an ill-conceived purchase of a fast ferry. It lost millions of dollars. When a new mayor took office he shut it down and put it up for sale. It still hasn't sold but the decision was the right one.

On a more global basis, we have the U.S. involvement in Iraq. I have heard strong arguments both to "stay the course" and to "cut and run." But the one that makes the most sense has been offered by New York Times columnist and best selling author, Thomas Friedman. First, he says that there is not one iota of a chance that we will be successful  in converting that country to a democracy. We have failed and no  amount of spin will change that. Thus we must set a date for full withdrawal and let the forces that be deal with that. But, President Bush won't do that. Like my first job and my last mayor, it will take a change in leadership to admit failure and move on. Sadly much American blood will be spilled waiting for January 2009.

Michael R. Perlson, Ph.D.

Experts versus Expertise

When I was a little boy my father would take me to the racetrack. As an accountant he loved to pour over the numerical minutiae of the Daily Racing Form. Based on his  analysis he would make his bets. I, on the other hand, would read the analysts's selections and make my choice based on who was picking winners that day. Our success was about even but I had a lot more time to watch the horses warm up.

That pattern of trusting analysts rather than analysis has served me well throughout my life. I trust people, performance, and simplicity over technology and complexity. I don't care how a computer works only that I can write this blog, e-mail my friends, and pay my bills. Consumer Reports picks our appliances and Zagat is our guide to restaurants in places we visit.

Stan, my first boss after graduate school taught me a similar lesson. Our Fortune 500 company hired a team of consultants to select the best site for our new corporate headquarters. They unanimously recommended  Atlanta, Georgia. My mentor chuckled and pointed out that all of the top executives lived in Southern Connecticut. Our new home was built in Stamford.

Sid was my physician for over 30 years. He was and is a brilliant diagnostician. He did not have the greatest bedside manner which caused some patients to leave him. I found his style irrelevant. He kept me alive and well.

Jeffrey is my accountant. He was also smart enough to marry my daughter. I fill out the forms and his firm does my tax returns. I do not need to know the tax codes. He does.

Bob is my financial adviser. When he says buy, I buy. When he says sell, I sell. Over the years we have made a lot of money together. I always read his technical analysis. I almost never understand it. Only that he has a basis for timing the stock market that works.

Alex is an acquaintance of mine who is an oncologist. He is really really smart. If i were ever diagnosed with cancer I would beg him to take me as a patient. I have no idea what his credentials are.

Bottom line, as a consultant to hundreds of companies and in my own personal life, I have found that who is more important than what. Brilliance is so rare among people that when you find someone who has it, let them light the way.

Michael R. Perlson, Ph.D.

GVCSHRM to China

OS-Cubed and the Genesee Valley Chapter of the Society for Human Resource Managers (GVCSHRM) is sponsoring Fernan Cepero, HR Director for the Rochester YMCA in his SHRM ambassador trip to China.  Here is Fernan's description of his mission:

"The basic ideals and goals of the People to People Ambassador Programs have remained unchanged since the program was founded in 1956. Face-to-face interactions, fostering communication between individuals of many nationalities, continue to be the cornerstone of the program.   As a delegate on a professional exchange, I have a unique opportunity to establish connections with international colleagues that can yield lifelong benefits of contuing sharing knowledge and broadened perspectives. Through roundtable discussions, panel sessions, and site visits, I will gain an in-depth understanding of the common interests and challenges I share with human resource professionals overseas."

As part of his trip OS-Cubed has loaned him a laptop, and setup a blog for him - you can follow Fernan on his trip by reading the blog on our site...

Lee Drake

Branding

When I was a kid, branding was what cowpokes did to little doggies. Now it is a big fat fad that has marketing consultants running up huge fees with not a lot of tangible results.

The problem is that branding is being sold as something one chooses to do, as if it were a project one could start and finish. In the past we have taken the same path to motivating people, empowering them, and creating a vision for the future. With the same frustrating lack of results.

Branding is nothing more than a label for a company's culture. It is the process through which a cohesive, enduring impression of a business, product, or service is formed in the minds of potential customers. It is on-going and never-ending. It is driven by every interaction between the company and the public. By every interaction we mean not just the CEO but middle managers, sales people, truck drivers, and the receptionist. Over time these interactions leave impressions. These impressions accumulate to form a "living memory" in the minds of individuals and a "collective perception" across a wider audience.

A brand is the big idea that defines you. It is about you not me. It is about people not products. It is about customers not companies. Most brands are nothing more than labels. They rely heavily on cute names and snazzy logos. They make promises that the organization struggles to deliver. Rarely do they gain the trust of skeptical customers.

Since brands are more about people rather than products, the big idea around which they are formed has more to do with what they do for those people than the company. In its simplest form, a brand answers three key questions:

1. Content: What do you do for people?
2. Contest: How do you do it differently?
3. Context: How do people feel about you?

Before you rush out to hire a branding expert, you need to answer these three questions now. And you need to ask them of your current customers and future prospects.

Expect to be surprised. If you were truly able to look into the heart and soul of the people who buy your product, you would not need to worry about branding. And if you were truly serious about your brand image, you would look into the heart and soul of those who don't buy your product.

Michael R. Perlson, Ph.D.

When Asprins Won't Work...Handling angry employees

"Anger itself does more harm than the condition which aroused anger." David O. McKay

In all my years as a management trainer, the most requested training by managers and executives has been on the topic of performance appraisal feedback. Recently, I've noticed executives and managers have been asking more questions on strategies to handle an angry employee or coworker. Since anger in the workplace and the schoolroom has become an issue of increasing importance, I decided I needed some more information. When I heard that Marshall Rosenberg, the founder of the Center for Non-violent Communication (CNVC), was holding a presentation at the Omega Institute in Rhinebeck, New York, I signed up.

While Rosenberg's presentation of non-violent communication principles tends to rely on psychological concepts, the underlying theory presents a sound process to address issues of anger. Other experts on the concept of anger have concluded that processes very similar to the CNVC's teachings really do help reduce the emotional level in a confrontational situation (see work by Matthew McKay and colleagues).

Before discussing some of these processes, as a trainer, I have to remind managers and executives to avoid putting themselves in the position of being a counselor to employees. First of all, managers and executives are not trained in counseling principles. Second, there could be legal ramifications for the company and the individual from any attempt to serve as a counselor to an employee. Third, the only employee issues managers and executives should address are those that are job-related and under their control.

The most important point for managers and executives to keep in mind, when faced with a confrontational employee, is that  anger is a symptom. Most people react to the symptoms of emotions expressed by another person. We instinctively ask the other person to step back from his/her emotions. As most of us know, if someone tells us to calm down when we are angry, the advice is likely to further inflame our anger. So, first, avoid telling the angry person to "calm down", "get ahold of yourself", or to "get a grip". Second, acknowledge the employee's anger. Often that acknowledgement, itself, will decrease the tension level. Third, have the employee identify the cause(s). This is the point where many managers and executives slip into a counseling role. There is a tendency to identify or "guess" the causes for the employee. Don't. Let the employee do the work. Third, together with the employee, develop an action plan to resolve the underlying cause of the anger. Fourth, set up the action plan by listing concrete steps that have a specific time period for accomplishing these. Finally, schedule a follow up meeting to make sure the action plan has been successfully implemented.

Dolly Malik, Ph. D.

Baseball:Lessons in Patience & Leadership

I am a New York Mets fan which has been nothing to brag about since they won the World Series 20 years ago. But this year has been different. They have the second best record in baseball. I have been watching and listening to their manager, Willy Randolph. We can learn a lot from him and baseball.

Baseball is the only sport where the manager wears a uniform. He is the only sports manager allowed on the playing  field to talk to his players. Success in baseball is about getting the right people in the right positions. The same lesson we learn reading Jim Collins' best seller, Good to Great.

Baseball is barely a team sport. The plethora of individual statistics allow players to garner great praise even when their team is losing, whereupon they can  be traded to a winning team for the playoff run. The designated hitter is another nail in the coffin of teamwork. Picture Reggie Jackson of the Oakland Athletics driving his Rolls Royce behind the team bus. All of which truly challenges managers.

The really really good ones have much to teach us. Lessons that can be applied to business and industry. Here are five:

1. Pick the best athlete
Before a player is signed, the team has a tremendous amount of observed data about him. How often do we employ an industrial psychologist to evaluate candidates for hire or promotion?

2. Start small
The minor leagues provide a wonderful place to grow future stars. That's why it is called a farm system. Too often I see young hires plunged into corporate cultures and long-term staff managers with no people experience placed in situations that require developed interpersonal skills. Corporate cultures rarely develop strong leaders. People need to try their wings in smaller venues.

3. Exhibit patience
When a rookie struggles, savvy managers know when to play them and when to sit them down. Players have slumps. So do managers, sales people, engineers, and accountants. I have watched Randolph show great patience with Hastings Millege who was brought up prematurely due to injuries. Hastings has struggled. Yesterday he went three for four with a home run. In business, one strike and you are out is a recipe for disaster.

4. Rule of three
Earl Weaver, the feisty manager of the Baltimore Orioles, postulated that teams could win with three stars and a host of journeymen players. Those stars were a starting pitcher, a relief pitcher, and a slugger. I have seen the same thing in strong companies. Three stars: one in sales/marketing, one in operations, and one in finance.

5. Practice humility.
How can you not want to do well for a guy named Willy?

Michael Perlson, PhD

Innovation, Cognitive Dissonance, and Organizational Denial

The theory of cognitive dissonance holds that contradicting cognitions serve as a driving force that compels the mind to acquire or invent new thoughts to reduce the amount of dissonance. Often this surfaces when peoples' actions conflict with their self-concept.  Dissonance is aroused when people are exposed to information inconsistent with their beliefs. The heart of denial. If the dissonance is not reduced by changing one's beliefs, it can lead to misperception or misinterpretation of the information.

In an industrial organizational context we see this played out by companies that cling to outdated technologies and ineffective processes. Eastman Kodak sticks too long with film and is blitzed by digital photography. General Motors gives lip service to lean manufacturing and is creamed by Toyota and Honda.

All of which begins to explain a history of organizational denial by companies that can't or won't accept the superiority of competing products and services. Forest product companies that refused to see plastic; truly blinded by their trees. Vacuum tube television makers ignoring solid state technology. Blockbuster blind-sided by Netflix.

So what is next? What companies are ignoring their competiton? Your comments are welcome.

Michael R. Perlson, Ph.D.