Human Resources

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Procrastination V4 - WCP 2014

Why do we Procrastinate? ……Well, I’ll tell you tomorrow!!

Procrastination is a problem for the sufferer, it’s a problem for business and it can ruin cohesive team work. It is a universal problem in businesses of all sizes and yet we rarely discuss it.

“Procrastination is the bad habit of putting off until the day after tomorrow what should have been done the day before yesterday.” Napoleon Hill

I was surprised when reading an article in Psychology Today, to find it claiming that around 20 percent of people chronically avoid putting their heads down and getting on with the job. In fact these people actively look for distractions!

This seemed a little excessive until I looked at my own behaviour and that of my immediate team. I recognised that we all occasionally put off certain actions despite our valuing efficiency, team work and timelines as much as we do. The big question is, why?

Sometimes we put off those mundane things – like reconfiguring our computer files, organising our social media, reconciling bank accounts, or updating our web site. But often we procrastinate on bigger things that require more time, more commitment, and put us at an increased risk of failing, looking foolish or feeling emotionally bruised. Things like finalising our business plan, confronting a complex new task that threatens us, or not pursuing a long held ambition.

It appears procrastinators are not born as procrastinators; rather we are trained to some extent from birth. That’s the general consensus of psychological research into the art of procrastinating. One increasingly popular theory is that procrastination has its roots in childhood, where it functioned as a means of early of rebellion against authority figures or as apathy in the presence of a strong parental pressure to perform.

Doctor Joseph Ferrari, associate professor of psychology at De Paul University in Chicago, suggests that there are three types of procrastinators in the world:

  1. The arousal types, who get a thrill from rushing through projects at the last minute, whether they come out on top or not.

  2. The avoiders, who don’t want to get to the end of any given project because the fear of change keeps them paralysed.

  3. The decisional procrastinators, who simply cannot make any decisive choices because they can’t bear the results of their actions.

I find it interesting that these three types of procrastinators apparently use multiple “tools” to help them procrastinate whilst still appearing to function. Understanding which type of procrastinator an employee is and recognizing which of the following methods they use to procrastinate will help us to work with them and hopefully overcome the problem.

“Procrastination is like a credit card: it’s a lot of fun until you get the bill.” Christopher Parker

As with most management issues, understanding the cause is 90% of the solution and there is much we can do to help the procrastinator overcome their problem.

Let’s look at the common causes:

Perfectionism

We don’t always have to do things exceptionally well, often “good enough” is quite enough. The ingrained desire to get everything 100% correct every time can lead to a paralysing fear of failure and multiple revisions that just waste time. A phrase which springs to mind is “analysis paralysis”.

As John Henry Newman, Anglican Deacon and author, once said, “A man would do nothing if he waited until he could do it so well that no one could find fault.”

Fear of Failure

Fear of failure is a major factor for some. Failure can be seen as having far-reaching implications. For some it’s how they perceive themselves and how they think they are perceived by others.

On the other hand, if this same person breaks all records, they fear all future projects will be held to a much higher standard. Some people are willing to do anything, including nothing, in order to avoid being taken out of their comfort zone.

Being Overwhelmed

If a project is complex, the individual steps may seem endless! Instead of seeing individual steps and taking them, the procrastinator thinks they can see all the steps that lead to completion but has no idea which one to take.

If someone is overwhelmed by targets (either the ones they’ve set for themselves or the ones they’ve been given by others), they may find themselves feeling unable to disassemble tasks into constituent components. As a result they simply don’t know where to start.

This feeling of helplessness usually feeds upon itself until it eats away at their resolve, making workplace distractions a welcome escape. This leads to a loss of focus and thus motivation.

One method of overcoming this form of procrastination is to create an action list that’s prioritised and reduces a complex project into smaller, more achievable steps.

Prioritisation

What if someone simply can’t prioritise? Chances are they will spend hours working on non-essential tasks and fooling themselves into thinking that everything is okay.

Unlike those who get overwhelmed, those who can’t prioritise correctly don’t see anything wrong. These are the people that spend an hour deciding which font to use on the monthly report but don’t leave time to get the actual writing done.

One symptom of this type of procrastination is filling hours with “activity” rather than “action”. Often the excuse of being “flat out” is used, when really; this is just another form of procrastination.

As with the overwhelmed procrastinator the method of overcoming this form of procrastination is to create an action list that’s prioritised and reduces a complex project into smaller, more achievable steps.

Lying to Cover

Procrastinators are constantly lying to themselves. They lie to justify their failures (“Oh the System was down”). They lie to justify their successes (“Oh Fred did most of the work”). They lie to justify their justifications (“I’m sorry about the inventory debacle; it’s the warehouse, they screwed up again”).

Some procrastinators just don’t know how to not lie. Learning responsibility is the key to beating back the lies and overcoming procrastination. Help them take ownership and live up to their actions.

Lack of Motivation

Goals have to be worthwhile and achievable or managers and staff are probably going to give up on them. If the task isn’t interesting enough, intellectually satisfying enough or it’s simply dull, a procrastinator’s passion for the task is going to evaporate and they’ll find themselves looking for ways to occupy their minds. Suddenly the sun pouring in through the window becomes an irresistible magnet and they find themselves offering to head out and buy coffees for the team.

If you find this happening a lot, restructure the tasks so that they excite or add a personal reward to the end of every project. For example show real appreciation and praise if you get the monthly finance report on your desk by mid-day.

In a properly functioning and caring work environment management and or team members would ideally recognise the indications of procrastination and work together to break the cycle.

If as suggested procrastination is learned, then with help it can be unlearned. By looking out for and identifying procrastination as it’s happening, you can discreetly help by restructuring work habits, adding motivation and removing distractions.

I am convinced that a simple solution lies in planning and time management. Personally I always work from a rolling weekly task list and each day I write down the 5 things that I absolutely must do that day. This keeps me on the straight and narrow when my mind starts to wander.

Procrastination costs business a great deal in lost productivity and we should work to fix it but don’t expect overnight success. Lifelong habits are difficult to overcome and take time but the first step is always a hard yet positive move.

As Dr Ferrari says in his book “Still Procrastinating: The No Regrets Guide to Getting Things Done”:-

“Eliminating procrastination from our lives is like trying to stop a moving train; it’s not easy.”

Now avoid moving trains and….do it quickly, don’t procrastinate!

_____________________________________________________________________________________________________

By, Neil Steggall

 The Barking Mad Blog

Business Advice with Bite

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Rotten Apple

Loyalty, respect and support for team members are values instilled in us from childhood and they are certainly amongst the key attributes of successful leaders. A recent review has caused me to recognise that at times we may carry loyalty too far and we risk severe consequences by doing so.

In a recent review of two unrelated corporate failures I realised that each business suffered enormous damage as a direct consequence of disenfranchised and under performing senior managers. With the benefit of hindsight we can see that it is possible that if these managers had been removed 12 months earlier each company may well have survived.

Why are such managers retained? It is likely that their shortcomings have been recognised and discussed with them during performance reviews or following poor management decisions or errors of judgement. When faced with the prospect of dismissing them their line manager has almost certainly taken into account:

  • The monetary cost of replacing them

  • The productivity loss from replacing them and retraining a replacement

  • The disruption within the team or business unit

These are rarely valid arguments a bad manager will cause a disproportionate level of problems which may well lay hidden for months before something finally breaks. Further a bad manager is fracturing the team and negatively influencing others.

What are the solutions?

  1. Only recruit the best: By recruiting the best possible people you are taking primary responsibility for quality – you dramatically reduce the risk of future problems.

  2. Always Reference Check: When recruiting don’t be afraid to ask the tough questions of current or ex employers, yes we need great technical and educational skills but what about their interpersonal skills. Are they team players, do they play favourites or get involved in office politics.

  3. Formal Process: I have a policy that senior people are employed on the understanding that they will face a 180 day performance review – fail that review and its sudden death.

  4. All or nothing: Being mostly a team player is like being “slightly pregnant”; it’s just not on and it’s not going to work.

Now it may sound tough but if one of your apples is looking bad throw it away and do it quickly. Your team will thank you and your bottom line will prosper.

By, Neil Steggall

 The Barking Mad Blog

Business Advice with Bite

http://wp.me/p401Wv-ip

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Connect with me on LinkedIn, Twitter or Wardour Capital:

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New Ideas - wcp 2014

Leader or Manager? – Vive la Différence!

The terms leadership and management are often used to describe the same person or even used as though the words are interchangeable. They are not. The differences between leadership and management are vast and varied and placing the wrong person in the wrong position could have dire consequences for your business.

Leaders are rarely great managers and vice versa. Both are much needed and both have very different skill sets needed to build and sustain a successful modern business.

In his book: Management, the Individual and Society, Peter Drucker stated that “Management is doing things right; leadership is doing the right things.” Whilst the phrasing of this is a little “clunky” I have thought about the quote over many years and I cannot really improve upon it.

There is no hierarchy between the two but it is important to recognise which is which as early as possible both to ensure each individual receives the best training and support and to plan where in your organisational structure these Leaders and Managers are going to fit. Understanding who your leaders and managers are will assist in strengthening your organisation and its corporate culture and morale.

Good leaders have a unique ability to rally team members around a vision. Their belief in the vision is so strong, and they are so passionate about achieving it that team members will naturally want to follow them. Leaders also tend to be willing to take risks in pursuit of the vision.

Managers, however, are far more adept at executing the vision in a very precise and systematic way, taking responsibility for the infrastructure and detail of the vision and working with the team to see the job done. Managers are usually very risk-adverse.

It is the combination of these two skill sets working in harmony which often differentiates two seemingly similar organisations.

I have often likened leaders & managers to composers and conductors. The composer creates the dream or vision and the conductor delivers it.

By, Neil Steggall

 

The Barking Mad Blog

Business Advice with Bite

http://wp.me/p401Wv-gZ

 www.wardourcapital.com

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Creating an Entrepreneur - WCP 2013

Creating an Entrepreneur!

Is it possible….YES it is!

 

Entrepreneurs can be seen as the rocket fuel of new ideas, they create new businesses and form new industries and in common with such dangerous fuels entrepreneurs can occasionally end with an explosion, yet despite the occasional explosion we have to accept that entrepreneurs have driven commerce and commercial ideas forward for millennia.

Why are entrepreneurs and sound corporate management generally seen as oxymoronic? A commonly held corporate view is that entrepreneurs are too highly individual, unpredictable, difficult personalities and when it comes to team work and the subtleties of the office culture…..well perhaps it’s best not to go there!

Is this a fair view in today’s market or a historical carry over? Well perhaps it is time to re-assess, as entrepreneurs are changing and today’s business schools and universities are turning out business and law graduates with specific qualifications in entrepreneurship.

Having a brilliant, yet well rounded entrepreneur within a company could provide a much needed boost for most organisations. Imagine; a manager who embraces autonomy, who can not only see the problems but looks beyond to the solutions and the potential opportunities which can flow from the solutions.

A new generation of innovative and creative executives who can transform  ideas into profitable ventures. They strike the perfect balance – they look, act and think like entrepreneurs, but they work for the corporation. As any manager knows, such entrepreneurial team members are a rarity; however, this need not be the case.

Why not change your management culture to enable your future leaders to become more creative and entrepreneurial by developing a focused culture where innovation and creative thinking is encouraged, supported and of course rewarded.

One of the main problems facing many organisations is that they have lost sight of the importance of fostering creative thinking and innovation. They have become afraid of change and in doing so they are placing their business at risk and allowing their competition a valuable advantage.

Innovation should be seen as your ultimate corporate advantage and innovation springs from the minds of motivated and engaged employees, yes your entrepreneurs!

In the sixth century Sun Zu said “you may survive though defence but you can only win by attacking” and more recently Peter Drucker said “Business has only two functions — marketing and innovation.” Of course the most efficient and lasting method of attacking your competition is through marketing and innovation.

So what can your business do to be more competitive, to as Sun Zu recommends, “go on the attack?”

A decision to attack can filter down from the board through the CEO or an entrepreneurial culture within the organisation of creative thinking and visionary innovation can develop the strategy and sell it up the ladder.

Either route is possible but the latter will always deliver a better result.

A successful organisations culture inevitably stems from good leadership. This doesn’t mean that the board or the CEO have great ideas, they may have, but more importantly they create the environment in which managers are given the freedom and confidence to experiment and innovate. A management team encouraged to think and innovate will be motivated and will form a strong and positive corporate culture.

So how can we turn this into reality and create an entrepreneurial environment in your organisation? Here are my 7 steps to creating an entrepreneur:

  1. Create the environment. Ensure that management feel free and secure in scoping new ideas, in testing the established methods, in questioning and innovating at all levels and across all ideas. Allow for failures, if one out of ten ideas succeeds that’s probably a good trend line, eventually one of these ideas will boom!

  2. Thoroughly research and understand your customer and market needs and how well those needs are being met, look at how your organisation and products are perceived and then turn the table and examine your competitors. Equalling the value of competitive offerings is not going to “cut the mustard” if you want to win you must always ensure that you are leading the field in Marketing and Innovation and following through on customer service. Encourage your team to be bold, be different and be the best.

  3. Assume responsibility for your organisations cultural change and encourage and empower people to bring forward and implement their ideas and innovations.

  4. Support, learn from and work through the failures. If you get two or three successful new ideas and one absolute winner out of every ten pursued you are ahead of the trend line.

  5. Constantly strive to improve, to innovate and to lead, implement a strategy of marginal gains (The Power of Marginal Gains http://wp.me/p401Wv-di ) you will be surprised by the strength of results.

  6. Never underestimate your competitors, look at today’s automotive brands compared with those of 30 years ago. The industry initially laughed at Japan’s underpowered, small cars with floral carpets and upholstery but few would laugh today. Again Marketing & Innovation win!

  7. Your staff are outstandingly flexible and reliable assets to be deployed in the building of your business. Never see them as a cost, create an atmosphere of respect, treat employees as the rare and valuable resource they are and you will both reap the rewards of an exciting and vibrant corporate culture.

Some of the best ideas and simplest innovations are from businesses that already have had such a drive or survived times of stress. Don’t always look to reinvent the wheel, occasionally take the world’s best wheel and simply improve it. Sometimes copying is the best route forward, look at how the Japanese destroyed the UK motorcycle industry in the 1960’s and 70’s, they initially copied the UK machines and then introduced innovative and more advanced products.

 In the end, innovation is an state of mind. Train your key people to think and see differently, to search every day for the new, the better, form, function, value and service. This is where Steve Jobs was masterful in transforming not only an industry which he had helped create but in transforming the culture of a major global enterprise.

The value of leadership and empowering your management is enormous and in truth no one has a choice in the matter. Everyone must adapt, change and innovate and we can all with training, help and enthusiasm become entrepreneurs.

Empowering employees to be innovative and creative, and encouraging a ‘can do’ attitude can reap rewards for everyone – whether monetary or reward based – and companies that do this are more likely to survive the recession.

A recent show on the ABC called Redesign My Brain, hosted by Todd Samson, shows just how adaptable to new ideas, concepts and skills our brains are.

It has been said so many times but the answer is to constantly look beyond the horizon and use 360 degree vision and thinking.

 

By, Neil Steggall

The Barking Mad Blog

Business Advice with Bite

http://wp.me/p401Wv-gv

 www.wardourcapital.com

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Winning WCP 2013

The Power of Marginal Gains

I first heard of the power of marginal gains as a student. Back then “the power” of ideas such as marginal gains, marginal pricing,  marginal costing, marginal probability and compound interest were all being used in business studies to show how something didn’t have to be “wiz, bang, new, fast and you beaut” to make a difference. It was power man!

Compounding interest has continued to fascinate me and occasionally I while away the odd hour on Excel running compounding options. Truly fascinating…..really! The largest deal I ever closed was when as a young executive I convinced the board of a major American company to supply us on the basis of marginal costing.

Recently on a quiet Saturday (I know it’s sad) I googled “The Power of Marginal Gains” expecting to find a plethora of MBA theses on the subject but instead I found page after page of British cycling triumphs and a guy called Dave Brailsford – Now Sir Dave all thanks to his marginal gains!

British Cycling…….Why?

No British cyclist had ever won the Tour de France, but as the new General Manager and Performance Director for Team Sky (Great Britain’s professional cycling team), that’s what Brailsford was asked to do.

His approach was simple.

Brailsford believed in a concept that he referred to as the “aggregation of marginal gains.” He explained it as the “1 percent margin for improvement in everything you do.” His belief was that if you improved every area related to cycling by just 1 percent, then those small gains would add up to remarkable improvement.

They started by optimizing the things you might expect: the nutrition of riders, their weekly training program, the ergonomics of the bike seat, and the weight of the tires.

But Brailsford and his team didn’t stop there. They searched for 1 percent improvements in tiny areas that were overlooked by almost everyone else: discovering the pillow that offered the best sleep and taking it with them to hotels, testing for the most effective type of massage gel, and teaching riders the best way to wash their hands to avoid infection. They searched for 1 percent improvements everywhere.

Brailsford believed that if they could successfully execute this strategy, then Team Sky would be in a position to win the Tour de France in five years’ time.

He was wrong. They won it in three years.

In 2012, Team Sky rider Sir Bradley Wiggins became the first British cyclist to win the Tour de France. That same year, Brailsford coached the British cycling team at the 2012 Olympic Games and dominated the competition by winning 70 percent of the gold medals available.

In 2013, Team Sky repeated their feat by winning the Tour de France again, this time with rider Chris Froome. Many have referred to the British cycling feats in the Olympics and the Tour de France over the past 10 years as the most successful run in modern cycling history.

And now for the important question: what can we learn from Brailsford’s approach?

The Aggregation of Marginal Gains

It’s so easy to overestimate the importance of one defining moment and underestimate the value of making better decisions on a daily basis.

Almost every habit that you have — good or bad — is the result of many small decisions over time.

And yet, how easily we forget this when we want to make a change.

So often we convince ourselves that change is only meaningful if there is some large, visible outcome associated with it. Whether it is losing weight, building a business, travelling the world or any other goal, we often put pressure on ourselves to make some earth-shattering improvement that everyone will talk about.

Meanwhile, improving by just 1 percent isn’t notable (and sometimes it isn’t even noticeable). But it can be just as meaningful, especially over time.

And from what I can tell, this pattern works the same way in reverse (in other words an aggregation of marginal losses) a 1 percent decline here and there — that eventually leads to a problem.

In the beginning, there is basically no difference between making a choice that is 1% better or 1% worse. (In other words, it won’t impact you very much today.) But as time goes on, these small improvements or declines compound and you suddenly find a very big gap between people who make slightly better decisions on a daily basis and those who don’t. This is why small choices (“I’ll take fries with that”) don’t make much of a difference at the time, but add up over a period.

The Bottom Line

Success is a few simple disciplines, practised every day; while failure is simply a few errors in judgement, repeated every day.

Most people love to talk about success (and life in general) as an event. We talk about losing 50 pounds or building a successful business as if they are events. But the truth is that most of the significant things in life aren’t stand-alone events, but rather the sum of all the moments when we chose to do things 1 percent better or 1 percent worse. Aggregating these marginal gains makes a difference.

There is enormous power in small steady wins. This is why the tortoise usually beats the rabbit, the system is greater than the goal.

Where are the 1 percent improvements in your life?

Neil Steggall

The Barking Mad Blog

SME Advice with Bite

http://wp.me/p401Wv-di

www.wardourcapital.com

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A woman Knows - WCP 2014

What Do Women Know About Business……?

Quite a lot actually!

My offensively sexist headline was used as a “hook” to encourage you to think about gender equality in business.

Gender Equality WCP 2014

In my years in business very little management discussion has focused on the simple fact that our population is more or less and equal split between males and females. When gender is discussed it is usually in terms of targeting a product at either men or women – as an example I am told that in my son’s local supermarket in up-state New York they now sell pink rifles for the “girls”!

Where is he going with this? I hear you ask; well stay with me.

Each week I set aside two days, usually Tuesday and Thursday to meet with clients, prospective clients and the affiliate businesses we maintain relationships with. This week was different.

All but one of my meetings was with a female CEO or Manager; it wasn’t planned it just happened that way.

Interestingly SME’s lead the way in gender balance as over 32% of SME CEO’s are female compared to only 8% in the corporate world.

Now back to my week. It turned out to be both challenging and exciting as I quickly recognised that the “pattern” of the meetings was subtly different, the questions put to me were far more direct and probing and some of the feedback regarding our corporate direction and product offerings was more frank than usual. This was consistent across my two days of meetings and the only difference was the gender mix of the meetings.

I didn’t initially think anything of the changed “pattern” I merely enjoyed the buzz and excitement that flows from strong and intelligent discussion and was pleased with progress made. Towards the end of my string of meetings I realised this “pattern” had to be more that a coincidental meeting of minds with a series of very challenging intellects.

These very smart CEO’s were different. They were WOMEN!

Research from Dr Patrice Zsabo of The University of Manchester published in 2012 states that males and females do think and act differently in both social and professional settings.

The research suggested females demonstrated higher levels of both Social IQ and social empathy than men, they are conciliators by nature, good team members and more detailed, honest and open in their discussion with colleagues.

I recognised that I was benefiting from the subtly different ideas and views which flowed back and forth during the discussions with these very smart, savvy and professional women and I believe they felt the same. I quickly realised that collectively we were stronger, a more complete team.

 I didn’t agree with all that was put forward but I had cause to stop, think and question my positions and ideas and that very questioning provided me with a wider understanding of the issues.

Logically if 50 percent of the population is female and 50 percent male I am at a loss to understand why current management doesn’t reflect this.

Why as managers do we not venture out to seek the views of the opposite sex? Surely for optimum balance and a better understanding both sexes should be involved in discussing and determining the corporate direction.

I just don’t buy the “if we are professionals our sex doesn’t matter” It does. Management should reflect the society we live in, the clients and customers we do business with indeed it should reflect humanity.

It’s up to us male and female to make this happen and it’s easier as an SME to lead the change than it is for a corporation.

So let’s make a difference and take the SME balance to 50/50 we are already closer than our corporate counterparts.

Neil Steggall

The Barking Mad Blog

SME Advice with Bite!

http://wp.me/p401Wv-cM

www.wardourcapital.com

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True Success - WCP 2014

SUCCESS!!! Can everyone succeed?

Have you ever gone along to one of those meetings where only as you arrive do you realise the objective is to recruit you into Multi-Level Marketing? ……I have.

At first analysis the system is fool proof. Follow the program, build your team, sell some product and you are going to be rich and successful!

It demonstrates the simplicity of applied logic and the leveraging of numbers; and yet…….less than 1 in 1,000 recruits are successful.

Basically the MLM system fails to deliver because it is a numbers game dependent upon you being the possessor of a hide thicker than an elephants. It requires exacting teamwork from a large number of disparate people each with a differing view of “their” business and differing needs and wants.

The logic fails the humanity test.

Click on any social media site or online magazine today and you are overwhelmed by articles and ads offering SUCCESS in 1,2,3 or 5 simple steps. Do these programs work?

I may well lose friends and totally fail to influence people here but I think most of this is poppycock and hype. Sheer unadulterated psychobabble perpetrated by the need to fill space and the never ending need of people to hear their own voice or see their name in print. And yes don’t rush off to check…..I have in the past written the 5 Key Steps to…..etc. I am now maturing!

All right…..send your email now signed “Disgruntled and Disgusted” of ……..(enter suburb).

Let’s step back a little and consider the early management advice of one of my key influencers and a true management guru, Peter Drucker. He really thought deeply about business and business success. One can gauge the very depth of his thinking by his brevity of words and his no nonsense common sense, I offer a few simple Drucker quotes below:-

  1. “The purpose of business is to create and keep a customer.”

  2.  “Business has only two functions — marketing and innovation.”

  3. “What’s measured improves”

  4. “Management is doing things right; leadership is doing the right things.”

  5. “Until we can manage time, we can manage nothing else.”

  6.  “Success comes to those who know themselves – their strengths, their values, and how they best perform.”

It was hard to choose these six almost primitively simple Drucker quotes as they were chosen from around 300 Drucker quotes collected on my computer. Each quote deserves contemplation and through contemplation will provide an essential element of management.

Each quote hints at and leads the mind to see the larger plan behind and excitingly that unfolding image will be as powerful, as functional and yet different to each one of us.

In my mind his thinking reduces management to its core componentry, there are no new Emperors Clothes on promise here.

So what is SUCCESS? Let’s look first at what it is not. It is not big cars, big spending, private jets, corporate jaunts and attractive sexy partners; they are life style choices.

SUCCESS is achieving your own goals or your own objectives. If you set out to complete task (a) today, when finished you have succeeded. In Drucker’s mind the 6 quotes above would when understood and implemented represent 6 huge successes which, as a whole would represent a far greater, lasting, collective success.

SUCCESS is not the destination it is the culmination of the hundreds, possibly thousands of small successes you achieve along the journey. As with any great structure designed and built intelligently and with care the end result is always stronger and more resilient than its constituent parts. This is SUCCESS.

Can everyone succeed? No. Business requires certain personality traits and a good deal of skill, vision, courage, determination, stress and complexity. This is more than some people want or can handle.

Certainly through start up almost every business is a very hot kitchen to be in! To not have the desire or the personality to run a business is not a failure it is a simple fact.

Where does this leave us? In my opinion with four critical attributes (yes I know!) you can probably succeed in business:-

  • A sound product or service

  • Confidence in yourself and your vision

  • A written business plan including objectives, marketing and basic financials which you measure the business against

  • Absolute guts, determination and a preparedness for hard work

Perhaps business success really comes down to that final dot point!

By: Neil Steggall

The Barking Mad Blog

Business Advice with Bite!

http://wp.me/p401Wv-bC

www.wardourcapital.com

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Integrity 2 WCP

Leading with Integrity

Leadership goes hand in hand with the power team of Trust and Respect. To build a reputation for Trust and Respect you need to demonstrate a high level of Integrity and unfortunately integrity can be a contradiction in today’s workplace.

Some years ago I had to dismiss a team member who was great at his job and he and his wife had become good family friends. The reason was simple; he had made a fatal error of judgement and in doing so had, to the wider team, lost his integrity.

The label of integrity is hard to earn and yet it can be lost in a single action. I am not even sure it is something we consciously look for in someone but we notice when it is missing.

It is only after we have considered our own actions, evaluating how they align with our personal values, intentions, and deeds, that we are most likely to make a contribution of integrity to the world.

We are each responsible for our own integrity and the best leaders create cultures that nourish the integrity of others.

At its root of the word integrity we find; to “integer” and “integrate”, it speaks of unity and wholeness. We still think of the word in this original sense when we talk about “structural integrity,” the quality that enables a building to stand and that, when lost, lets a building collapse under its own weight.

As US Rabbi Jonathon Omer-Man said, “Integrity is the ability to listen to the place inside oneself that doesn’t change, even though the life that carries it may change.”

Most of us evolve and develop throughout our journey as leaders. Our character and our integrity are remembered long after the glitter of the deals has faded.

Having integrity leads to the building of trust as we practice honest conversations with others. Integrity is a positive deposit in the bank of our connections.

Trust is an inherent part of integrity. People need to trust that leadership is serving everyone’s best interest and leadership needs to trust that team members are fulfilling their own responsibilities.

HOW DO WE IMPROVE LEADERSHIP INTEGRITY?

This possibly varies person to person but the following points, in my opinion, cover integrity within leadership.

  • Respect – practice integrity with others by treating them with respect — even when they do not live up to your personal expectations of them. Recognise that your own standards can be subject to question. We get and give the best of each other in a culture that supports respect.

  • Reliability – This is a more functional definition of integrity and a basic practise of a natural leader. It includes showing a little humility, keeping promises, meeting important deadlines and being there when people need you.

  • Sharing – It’s important for leaders to clearly articulate their values and expectation of integrity. Share these values as a culture-building objective as to how we collectively define integrity.

  • Responsibility – We need to acknowledge our responsibility for every one of our actions. It demonstrates that we are not using other people or external events as the cause of our problems. Wherever possible blame no one, accept the behaviour of others and the circumstances of an action as a given, and move forward.

  • Considered Actions – This is the leader’s obligation to take the right action. It means embodying our integral principles and accepting the consequences for our actions.

  • Thinking 360° – Think of the whole not just this one problem or decision, integrity can be viewed as a culture of wholeness, of being able to support all of the components for the long term good of all.

I have to admit that I have on numerous occasions made decisions or taken a course of action that would not withstand scrutiny of the points above. This is where self-awareness comes in and that question; “What is the correct course?” and remember life is a journey, good and bad……we can only do our best as we see it at the time!

Corporate responsibility and integrity make strange if not incompatible bed fellows and over the years have formed much discussion over the dinner table. In this article I am really only trying to examine questions of integrity in leadership.

Examining integrity at an intellectual level seems to raise more questions than answers. Mistakes will always made and occasionally poor judgement will be shown. Importantly we are now aware of some of the questions and it’s what we learn and how we adapt to our mistakes that we should now contemplate.

Neil Steggall

http://wp.me/p401Wv-bj

The Barking Mad Blog

Business Advice with Bite

www.wardourcapital.com

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A Great Mind Map - WCP 2014

 

Mind Mapping: let it work for you.

MIND MAPPING

Some of us think better in pictures etc. Before thinking through a big idea, I usually visualise it as a diagram. I have always “solved problems” graphically. Sometimes entirely within my mind and then A1 sheets of paper, followed by whiteboards, and eventually computers. Now I use a combination of all three. I called it mind mapping long before the phrase became popular – it just seemed to fit..

Basically mind mapping is the task of transferring thought and ideas, group or individual into a written form. I find brainstorming sessions are so much more powerful if there is a mind mapper in the group and especially so if that person is good with pen, paper or the whiteboard.

Are you a mind mapper? Are you able to get those amazing business ideas you toy with when driving or in bed down onto paper? It’s a skill but not a hard one to acquire, it can be fun and importantly the results can really change your business.

WHAT IS MIND MAPPING?

A mind map is a powerful way to generate and visualise new ideas, analyse problems, brainstorm, plan, show or research, complex ideas. Isn’t this just good old fashioned “brainstorming” under a new name? I hear you ask. No, mind mapping is a more structured approach to analysing and solving problems.

We now operate in a world where graphic representations are used more frequently and our brains are responding well to graphic analysis. Here are a few handy tools you can use to incorporate mind mapping into your business process.

WHITEBOARDS

The most basic tool you can use for mind mapping is a whiteboard. If you have a whiteboard you can start mind mapping individually or as a team to solve problems or to formulate new ideas. Today life is so easy, when you have the whiteboard full of ideas, take a picture of the whiteboard with your phone and upload it to your computer and share it with the team. Sometimes I get the original whiteboard data on the 60 inch screen in the meeting room so the whole team can see it and we start again on the whiteboard testing out our earlier ideas. This is a great way to mind map as a team.

THE BIGGERPLATE MIND MAP

If you want to up the ante and introduce a little more structure and sophistication into your sessions there are now several free or inexpensive mind mapping programs available.

Biggerplate’s mind map should meet most of your needs. In this extensive mind map collection, you’ll find templates for almost every task and challenge, including business mind maps, training mind maps, and general mind maps which you can use in your everyday life. The Biggerplate templates include everything you need from SWOT analysis (strength, weaknesses, opportunities, and threats), time management matrix, project management, task management and even tracking objectives.

If you and your team are struggling to get the mind mapping started, the Biggerplate templates can lead you into and through the process. I enjoy looking through Biggerplate’s top 10 mind maps just to see which templates other professionals are finding useful.

MINDJET

Very easy to use and inexpensive to buy Mindjet is an easy to use program designed for a variety of tasks, including mind mapping and brainstorming, Mindjet has flexible features which can be used in a variety of tasks including mind mapping, strategy development, marketing, sales and information technology.

MAPS FOR THAT!

The title just about says it all. Maps for That is great if you’re looking to share the mind maps you have just created or if you want to browse mind maps submitted by other teams or team members. It comes with amazing features and includes user-submitted mind maps in a variety of categories; including business, analysis, management, education, entertainment, events, and productivity, just to name a few.

If you’ve created a mind map you think others may find useful, upload it to the Maps For That site so that other users of the service can share. Initially just sign up for a free account, you can download and upload mind maps, comment on other users’ mind maps, and rate the mind maps you find the most useful.

MOBILE APPS

If your business uses smartphones or tablets as a way to communicate or work on projects, check out the mobile apps available from Mindjet. These apps allow you to create, edit, and view mind maps while you’re on the go or away from your computer. Available for the iPhone, iPad, and Android devices, these mobile apps can be downloaded free of charge directly to your smartphone or tablet.

If you haven’t started using mind mapping in your business, you may be missing out. Mind mapping can be used to create new business ideas, solve complex problems, and brainstorm with other team members — whether you’re in the office or on the go.

As I said at the start we all think and work differently, I enjoy mind mapping, let me know what you think.

Neil Steggall

http://wp.me/p401Wv-b8

The Barking Mad Blog

Business Advice with Bite!

www.wardourcapital.com

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Communication 2

The Power of Great Communication

And……..How-to-become-a-great-communicator.

Often after first drafting a speech or an article I look through and ask myself the question “what would my wife cut out of this?” Invariably its 60% or so of what I have written. My wife, I should add, is a successful author, journalist and historian and she can paint amazing mind images with such economy of words.

What I realise is that with discipline I can and do communicate well but I am not a natural. As I commence a story around the family dinner table the “children”, largely grown and successful now, groan and shout “make it quick or we are leaving” or “oh not that one again.”

Whilst not comparing myself (lol) with great communicators such as Winston Churchill, Franklin Roosevelt, John F Kennedy, Ronald Reagan, Nelson Mandela and Paul Keating I do occasionally wonder how Sunday lunch went down at their house.

Peggy Noonan was presidential speechwriter for most of Ronald Reagan’s presidency and she explains why Reagan’s presidency had such an impact on the world stage.

“He was often moving, but he was moving not because of the way he said things, he was moving because of what he said. He didn’t say things in a big way; he said big things … Writers, reporters and historians were in a quandary in the Reagan years. ‘The People,’ as they put it, were obviously impressed by much of what Reagan said; this could not be completely dismissed.”

Reagan was known as “The Great Communicator”, yet it’s a nickname he didn’taltogether agree with.  In his farewell address to the nation and to the world, in his own humble way, he redirected the praise by saying:

“In all of that time I won a nickname, ‘The Great Communicator.’ But I never thought it was my style or the words I used that made a difference: It was the content. I wasn’t a great communicator, but I communicated great things, and they didn’t spring full bloom from my brow, they came from the heart of a great nation — from our experience, our wisdom, and our belief in principles that have guided us for two centuries.”

My take on this is that it doesn’t matter whether you are a president or a manager – your success will depend heavily on your communication skill.

What are the key actions of great communicators?

Engagement

Communication is just that, it’s a two way flow of information. Great communicators know how to give and take and understand its importance. They not only initiate conversation, they steer the direction of and encourage others to join in the conversation.

Connection

Great communicators know that people won’t listen unless they connect both intellectually and emotionally. Know your audience and start by conveying emotional stories that connect to their heart. It’s all about the quality of the relationships the leader has with the people they communicate with.

I know several tough and very senior Australian business leaders who have met Bill Clinton on separate occasions both in Australia and in the US, each was impressed. In my post meeting discussions with them each said that when Bill Clinton talks with you, he makes you feel like you are the only person in the world. Wow. Show your listeners your empathy let them feel it and know you value their importance.

Humour

Great communicators are skilled in relaxing those with whom they communicate. An audience is often suspicious or defensive from over-communication and perhaps afraid of being “sold something”.  Great communicators show genuine interest in the other person and use humour and authenticity to come across as understandable and authentic..

Clarification

If you overwhelm your listeners, you will lose them, they will tune you out from boredom or confusion. Reagan was best known for being simple and clear. Never assume just because you understand what you’re saying that your audience does as well. Great communicators find ways to simplify though issues without being condescending.

Reinforcement

Great communicators know that an audience will retain only ten percent of what they hear, and therefore they are skilled at subtly reinforcing key ideas. They re-run their message throughout their presentations, speeches and writings. It is all about context and repetition.

Well I reckon that given the chance “my editor” would have pulled 15% of this and yet I think we are communicating OK!

Neil Steggall

http://wp.me/p401Wv-b0

The Barking Mad Blog

SME Advice with Bite!

www.wardourcapital.com

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Wardour Capital Meeting #2  2014

10 Tips to Organize a Successful Business Meet

What do you do to ensure that the business meet you organized doesn’t fizzle out?

As a top entrepreneur in the lead, you must take the initiative to arrange business meets to connect with others. But that isn’t all; you need to create an event that people enjoy. Not something they dread!

If you create a platform where entrepreneurs share their thoughts, views, opinions and crises. It helps you earn the trust and respect of your fellow entrepreneurs. And it boosts that collegiate  feeling. You just need to make it a success. But it is easier said than done.

Let’s take a look at 10 simple but effective things that can help you achieve your goal.

Take Your Time to Plan Every Detail

You cannot wait until the last minute to send out the invites and think everyone will turn up. Decide the time and date, select the venue and inform the business meet group members about it in advance. They have to fit it into their busy schedules too.

Check Every Important Aspect In Advance

How will you feel if the audio doesn’t work when someone’s making a presentation? Reach the venue and double check every detail. Make sure the space is adequate for all and the audio-visual equipment works.

Make It An Exclusive Event

Identify the niche you are in and create a group with a strong focus on the core concept. When you make it an invite-only event, you generate interest about it among the entrepreneurs in the niche to participate. This also encourages the aspirants to be part of the community.

Make Introductions Easy With Name Tags

It isn’t easy to remember the names of hundreds of entrepreneurs at an event. Create name tags. It will make introductions a breeze! You can also add their business name and relevant details to it.

Adhere To Your Goals to Meet Expectations

As an organizer, you need to have a clear idea about what the meet is all about. Make sure this is in keeping with the image of your business. For example, if you are into apps development for educational institutes, educational meets are more suited. Plan the meet according to the purpose.

Organize Topics to Keep Everyone Engaged

What do you want people to talk about? Decide the things you want to interest people in at the meet. Use the topics to initiate conversations. You can also throw in some challenges to keep things in motion.

Offer Exposure for Start-ups

You may also incorporate talks, events, quizzes and such other elements into the business meet. But when you let a start-up offer a demo at the meet, you add to its interest. It supplies food for thought for the entrepreneurs present and gives them an excellent topic of discussion.

Give Conversations a Direction

Don’t let the conversation die down. Place your contacts at opportune points to keep it going. With this simple tactic, you will create an environment where people learn new things without a hitch.

Foster Relationships

A business meet is all about the relations entrepreneurs create. And the community they build. It is possible to boost entrepreneurial efforts when people have the support of their peers. Don’t just keep it professional. Let entrepreneurs connect with each other on a personal level. Social hangouts can help you with this.

Keep It Confidential

No entrepreneur will open up unless they are sure that their secret’s safe with the attendees. This is possible only when you assure that it remains within the group. Open and frank discussions will be possible only if you do this.

It isn’t difficult if you are aware of how to keep things in motion at the meet.

With a little planning and effort, it is possible to organize a business meet where the group members can share their stories, offer others positive challenges, help others get back on track and create a strong community.

 And what do you get out of it? Well, you become the proud organizer of a business meet that isn’t another monotonous hour of long conversations between people who don’t even connect with each other. But something that gives everyone their fair share of exposure in the community and ample food for thought.

The Barking Mad Blog

SME Advice with Bite!

http://wp.me/p401Wv-az

Education

6 Key Causes of Procrastination.

Procrastinate, Procrastinate, Procrastinate! Spoken aloud and with the correct intonation this little mantra sounds remarkably similar to the Daleks famous Exterminate, Exterminate and believe me Procrastination can lead to SME Extermination!

Procrastination is a problem for the sufferer, it’s a problem for the SME and it’s a deal breaker for cohesive team work and yet it is a common problem in businesses of all sizes.

Some weeks ago I was surprised when reading an article in Psychology Today, to find it claimed that around 20 percent of people chronically avoid putting their heads down and getting on with the job. In fact they actively look for distractions!

That seemed a little excessive until I looked at my own behaviour and that of our team. I realised that we all occasionally put off certain actions despite our valuing efficiency, team work and “multitasking” as much as we do.  The big question is, why?

We all procrastinate from time to time. Sometimes it’s those mundane things – like reconfiguring our computer files, reconciling bank accounts, or fixing up a dated web site. But often we procrastinate on bigger things that require more time, more commitment, and put us at more risk of failing, looking foolish or feeling emotionally bruised.  Things like updating our business plan, confronting a complex new task that threatens us, or not pursuing a long held ambition.

It appears procrastinators are not born as procrastinators; rather we are trained to some extent from birth.  That’s the general consensus of psychological research into the art of procrastinating.  One increasingly popular theory is that procrastination has its roots in childhood, where it functioned as a means of early of rebellion against authority figures or as apathy in the presence of a strong parental pressure to perform.

Doctor Joseph Ferrari, associate professor of psychology at De Paul University in Chicago, suggests that there are three types of procrastinators in the world:

  1. The arousal types, who get a thrill from rushing through projects at the last minute, whether they come out on top or not.

  2. The avoiders, who don’t want to get to the end of any given project because the fear of change keeps them paralysed.

  3. The decisional procrastinators, who simply cannot make any decisive choices because they can’t bear the results of their actions.

I found it interesting that these three types of procrastinators apparently use multiple “tools” to help them procrastinate whilst still appearing to function.  Understanding which type of procrastinator an employee is and recognizing which of the following methods they use to procrastinate will help you to work with them and hopefully overcome the problem.

As with most management issues, understanding the cause is 90% of the solution and there is much we can do to help the procrastinator overcome their problem.

Let’s look at the common causes:

Perfectionism

We don’t always have to do things exceptionally well, often “good enough” is quite enough.  The ingrained desire to get everything 100% correct every time can lead to a paralysing fear of failure and multiple revisions that just waste time. A phrase which springs to mind is “analysis paralysis”.

As John Henry Newman, Anglican Deacon and author, once said, “A man would do nothing if he waited until he could do it so well that no one could find fault.”

Fear of Failure

Fear of failure is a major factor for some.  Failure can be seen as having far-reaching implications. For some it’s how they perceive themselves and how they think they are perceived by others.

On the other hand, if this same person breaks all records, they fear all future projects will be held to a much higher standard.  Some people are willing to do anything, including nothing, in order to avoid being taken out of their comfort zone.

Being Overwhelmed

If a project is complex, the individual steps may seem endless!  Instead of seeing individual steps and taking them, the procrastinator thinks they can see all the steps that lead to completion but has no idea which one to take.

If someone is overwhelmed by targets (either the ones they’ve set for themself or the ones they’ve been given by others), they may find themself feeling unable to disassemble tasks into constituent components.  As a result they simply don’t know where to start.

This feeling of helplessness usually feeds upon itself until it eats away at their resolve, making workplace distractions a welcome escape.  This leads to a loss of focus and thus motivation.

 One method of overcoming this form of procrastination is to create an action list that’s prioritised and reduces a complex project into smaller, more achievable steps.

Prioritisation

What do you if someone simply can’t prioritise?  Chances are they will spend hours working on non-essential tasks and fooling themselves into thinking that everything is okay.

Unlike those who get overwhelmed, those who can’t prioritise correctly don’t see anything wrong.  These are the people that spend an hour deciding which font to use on the quarterly report but don’t leave time to get the actual writing done.

One symptom of this type of procrastination is filling hours with “activity” rather than “action”. Often the excuse of being “flat out” is used, when really, this is just another form of procrastination.

As with the overwhelmed procrastinator the method of overcoming this form of procrastination is to create an action list that’s prioritised and reduces a complex project into smaller, more achievable steps.

Lying to Cover

Procrastinators are constantly lying to themselves.  They lie to justify their failures (“Oh the System was down”).  They lie to justify their successes (“Oh Fred did most of the work”).  They lie to justify their justifications (“I’m sorry about the inventory debacle; it’s the warehouse, they screwed up again”).

Some procrastinators just don’t know how to not lie.  Learning responsibility is the key to beating back the lies and overcoming procrastination.  Help them take ownership and live up to their actions.

Lack of Motivation

Goals have to be worthwhile and achievable or managers and staff are probably going to give up on them.  If the task isn’t interesting enough, intellectually satisfying enough or it’s simply dull, a procrastinator’s passion for the task is going to evaporate and they’ll find themselves looking for ways to occupy their minds.  Suddenly the sun pouring in through the window becomes an irresistible magnet and they find themselves offering to head out and buy coffees for the team.

If you find this happening a lot, restructure the tasks so that they excite or add a personal reward to the end of every project.  For example show real appreciation and praise if you get the monthly finance report on your desk by mid-day.

In a properly functioning and caring work environment management and or team members would ideally recognise the indications of procrastination and work together to break the cycle.

If as suggested procrastination is learned, then with help it can be unlearned.  By looking out for and identifying procrastination as it’s happening, you can discreetly help by restructuring work habits, adding motivation and removing distractions.

I am convinced that a simple solution lies in planning and time management. Personally I always work from a rolling weekly task list and each day I write down the 3 things that I absolutely must do that day. This keeps me on the straight and narrow when my mind starts to wander.

Procrastination costs SME’s a good deal in lost productivity and we should work to fix it but don’t expect overnight success.  Lifelong habits are difficult to overcome and take time but the first step is always a hard yet positive move.

As Dr Ferrari says in his book “Still Procrastinating:  The No Regrets Guide to Getting Things Done”, “Eliminating procrastination from our lives is like trying to stop a moving train; it’s not easy.”

Now avoid moving trains and….do it quickly, don’t procrastinate!

By: Neil Steggall

The Barking Mad Blog

SME Advice with Bite!

http://wp.me/p401Wv-a8

www.wardourcapital.com

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The Perfect Storm

(A Modern Horror Story)

Because it Rains in Paradise

Why be so negative?……. well let’s use  Paradise as a metaphor.

Because It Rains in Paradise…….!!!!!! 

Come along take a short ride on this little thought wave, let’s see Paradise as a metaphor for a well-run business, a prosperous and growing concern and let’s see the rain as a metaphor for an approaching economic storm.

How well protected are we in terms of our ability to weather the storm? We have our business plans to hand but they make no mention of a storm. Have you been through a storm before? What changes? How do we survive? How bad will be storm be? Can we rebuild post storm?

So many questions and yet so far so few real life answers.

Breath deeply, let us relax together and read a little story……….

At times business can appear a lot like paradise, it’s a great place to be, and everyone wants to be there to enjoy life with you, to know you and to bask in your reflected success. You are the visionary, the hard working, creative, entrepreneurial brain who made this all possible, your adrenaline flows, your energy and ideas come together, your staff are happy, motivated and successful, they respect you, the cash flows in, you drive a nice car, dress well, you eat at the best restaurants, you fly at the front of the plane, you speak at conferences, and…….ahhhh you sit back, relax and you reflect on just how good your life is.

One day, a small cloud passes between you and the sun, sending a slight shiver through you, but it quickly passes. Utilizing your latest smart devices you send a few more ideas, instructions, queries, emails and more pictures of Paradise to your office, you check your bank balances, transfer a few funds here and there and it’s not yet lunch time.

The sun still shines but the palm leaves rustle again this time with an unsettling sound and in the distance the ocean appears darker, are those clouds, building in the far distance or a trick of light on the horizon?

Far, far away from Paradise and way over the horizon is The Land of Plunder (LOP). A terrible, bleak, dark miserable environment that draws the humanity, skill, resourcefulness and entrepreneurial spirit out of you like a black hole draws energy from its surrounding universe…..no profit, not even a scrap, ever escapes its clutches.

Populated almost entirely by wise and educated sages such as investment bankers, credit providers, speculators, derivative traders, stock brokers, securitization specialists, short sellers, long sellers, fund managers, promoters, actuaries, lenders, accountants, auditors, receivers, managers, liquidators, lawyers, barristers, regulators, and their shiny suited minions oh it’s a soulless place to exist yet alone to live.

The problem is that in the Land of Plunder no one actually makes, grows, manufactures, produces or sells anything. Nothing. Not a single thingamajig or even a widget. Not a single truly commercial activity in the whole land. Yet its population consumes the funds made in Paradise, it lives to play games with those funds converting them into concepts and instruments called spreads, market sectors, cash, gold, minerals, fuel, pork bellies, red bean futures, long and short positions, options, shares, derivatives, differentials, margins, rates of interest, rates of exchange, incremental ROI, leveraged positions, contingent assets and equally contingent liabilities. Perhaps the favourite game of all, played only by the most knowledgeable of sages, is the interpretation and discussion of meanings…..net, gross, before, after, on or off the balance sheet, earnings brought forward, deferred debt, provision for, contingent, or not and most importantly the holy grail itself………THE BONUS.

That night as you lay back in your king size bed, sipping a final glass of Comte de Taittinger, the wind rises and the palm leaves rustle, indeed as the tree trunks bend under the increasing force of the wind you get to thinking about The Land of Plunder. Who actually pays them and what for? What happens historically? Doesn’t the LOP like totally fuck up at least once every generation? And what happens when they do? Could it damage your business? What could you do to protect your business and the thousands like yours?

Another perfect day in Paradise dawns and already your CFO has confirmed that your cash registers are still singing caa-ching, your revenues are up, your staff are motivated, your customers are happy, your suppliers are on time and on budget and your R&D team is about to make yet another technological breakthrough and yet that lingering fear niggles away at you. How would I get by if the LOP was to get it all wrong?

Much of your new day is given over to this dreadful thought, and with the help of your laptop you reflect on history’s greatest LOP fuck ups. Dating from the Roman Emperor Diocletian’s disaster in the fourth century to those wicked Medici’s and their Pazzi Conspiracy and the subsequent Banking collapse of the fifteenth century, to the collapse of the Spanish economy in the mid sixteenth century….oh how could the wise sages have got the gold price so wrong? Of course no one within the LOP’s Dutch branch could have imagined that one day a Tulip Bulb would be worth less than its weight in gold but alas it came about. All of this further distresses you.

You of course realise that in the eighteenth century the sages came up with a brilliant plan, they sold the South Seas Company the exclusive rights to trade with and to import gold and other untold riches from South America. Sadly the sages didn’t actually clear this with the owners of South America, (Spain) or even mention it in the prospectus, small oversights they later realised and thus came about the South Sea Bubble. To date this is still history’s largest corporate collapse. Those damned Spaniards just didn’t play Cricket, did they, the sages were heard to mumble.

Racing forward, you find we have the sages of the LOP, engineering a convenient double act, in the Railroad and Silver collapse in nineteenth century America. Again the sages were ever so slightly wrong. More rail road carriages and rail roads were built than there were people and stock to travel on them. Some railroads went to towns and cities yet to be built. Proving that a double act was possible, the sages funded one or two, or was it ten or twenty, US silver mines to be opened on virtually the same day and surprise, surprise, the silver price fell through the floor. The US economy plunged into recession, jobs lost, families homeless, Railroad stocks crashed and companies failed but God Bless the sages……they still had their fees.

Still good hardworking entrepreneurs just like you were soon back at work in Paradise building their businesses, making and selling thingummy bits, widgets and the many whatnots needed by the people of Paradise. The sages were so impressed they decided to buy shares in these solid enterprises and trade them at a profit in LOP, whilst of course charging fees and profitably clipping tickets along the way.

Alas the shares were oversold and overpriced and in 1929 the entire global monetary system collapsed causing the worst depression, loss of jobs, homelessness, self-respect and starvation the world has ever known. In fairness some of the sages did feel quite bad about this and threw themselves out of their Towers of Babel to the pavement below. Though not many; and for the few that fell it was often as close to reality and real people as they ever came. One could go on and on mentioning the sages doing so well out of the provision of two glorious sessions of twentieth century global war debt, the Credit Squeeze of the early ’70s, the stock market collapse of 1987, the Banking Crisis of the early 1990’s and that monumental fuck up of 2008, but by now you really need a drink;

More importantly you need to recognise a the pattern, call in some real people and plan!

Please lets us know your thoughts, ideas and feedback. Contribute to this debate is both free and important to do so!

Post your thoughts below and………………….give some bark to your thinking!!!

October 2013

Neil Steggall

http://wp.me/p401Wv-aS

The Barking Mad Blog

SME Advice with Bite!