Posts Tagged ‘competition’

 

by Richard Martin

Conflict? Well, maybe that’s too strong a word. But I got your attention.

What I’m really alluding to is that readiness depends on considering varied points of view, a range of scenarios, especially ones you don’t like or fear, and a willingness to look at the consequences, negative and positive, of your future decisions and actions.

The best way to generate a full range of considerations, analyses, and options is to surround yourself with advisors and leaders who are not afraid of speaking their minds and whom you know for certain have divergent opinions, interests, and talents. Doris Kearns Goodwin wrote a book about Lincoln’s leadership and his cabinet, called Team of Rivals.

The title says it all. Goodwin makes the case that Lincoln was more interested in generating disagreement and, yes, even a healthy amount of conflict and competition, between his cabinet members. That way he was assured that he could get a variety of heartfelt opinions, and not just sycophantic agreement with his own ideas.

Contrast that with the pictures we regularly see of the North Korean dictator surrounded by his minions. They’re all holding their little notebooks and pencils, ready to jot down the “dear leader’s” every thought and wish. The forced rictuses of these supposed advisors and senior military commanders reminds me more of the dominated chimpanzees in a troupe who are trying to avoid the wrath of a despotic alpha male than the confident stance of generals and leaders of men.

On the other hand, this contrast shows what is needed for a team-of-rivals approach to be successful:

  1. The boss must be secure and confident in his/her leadership to not feel threatened by opposing points of view, especially from his/her advisors and delegated leaders.
  2. The advisors and subordinate leaders must have faith that they will be heard and listened to, that they will get their chance to put their point of view across without getting fired or otherwise reprimanded or humiliated.
  3. This entails loyalty both ways. The boss must be willing to hear divergent points of view, so long as they are debated “in camera.” The advisors and subordinates must accept that once a decision is made, they will carry it out as if it were their own decision, and this regardless of whether they were originally in agreement with it or not.
  4. If a subordinate or advisor can’t live with a decision by the boss, then he or she must resign.

How about you? Are you surrounded with advisors and subordinates who always agree with you, or do you have a “team of rivals,” people who will give you ground truth and stand by their principles? What’s more, are they willing to say what they want to say, and then execute the plan once the decision is made? Do you have the confidence and self-esteem to accept well-considered criticism and a divergence of opinions and passions? Can you take disagreement and even a certain level of conflict?

If you can count on the loyalty, integrity, and collegiality of your closest advisors and subordinates, then you have a great start on generating the range of understandings and options to propel your state of readiness to higher and more sustainable levels.

Remember Richard’s Business Readiness Process in 2017!

  1. Ensure vigilance through situational awareness.
  2. Do preliminary assessment of tasks and time.
  3. Activate organization or team.
  4. Conduct reconnaissance.
  5. Do detailed situational estimate.
  6. Conduct wargame and decide on optimal course(s) of action.
  7. Perform risk management and contingency planning.
  8. Communicate plan and issue direction.
  9. Build organizational robustness.
  10. Ensure operational continuity.
  11. Lead and control execution.
  12. Assess performance.

Call me for a Business Readiness Briefing in 2017!

Did you know that an infantry battalion only needs about 3 to 4 hours of prep and planning time to be battle ready? What are you waiting for to get the same benefits for your outfit?

Feel free to contact me at any time to discuss your objectives and needs.

And remember… STAND TO!!!

My name is Richard Martin and I’m an expert on applying readiness principles to position companies and leaders to grow and thrive by shaping and exploiting change and opportunity, instead of just passively succumbing to uncertainty and risk.

© 2017 Alcera Consulting Inc. This article may be used for non-commercial use with proper attribution.

 

I learned a valuable tactical lesson as a young infantry officer in the Canadian Army. We were on exercise in northern Norway, training to defend against a Soviet invasion (or incursion) as part of Nato’s deterrent stance.

My platoon was in a company that had to adopt a defensive posture against the forces simulating the enemy. As we rode into our positions in the company commander’s jeep, he told us that a quick and dirty technique to reconnoiter a defensive position was to drive into the area on the route we believe the enemy will take. That way, we get a view of the terrain from the enemy’s perspective and can incorporate that into our own positioning and planning.

It was a valuable lesson which I used throughout my military career, whether on the offensive, the defensive, or in peacekeeping and internal security. Always look at your situation from your enemy’s point of view. What is his objective? What is he trying to achieve? How is he likely to move and manoeuvre? What are his concerns and weaknesses? What are his strengths? You can apply this not only to an enemy, but also to a potential ally or any of the numerous stakeholders and bystanders on the modern battlefield.

When you think of it, though, this wisdom is just as applicable in business and management in general. I’ve been working as a volunteer with a non-profit to organize an upcoming event. I’ve been applying a similar logic to the people we want to attract to our event, as well as the potential exhibitors we want involved. What is their likely goal? What are their interests, concerns, values, and fears? What will make them comfortable in committing to participating or attending?

A colleague and friend of mine has had a long career in marketing, promotion, selling and business development. He says the key word in marketing and selling is “other.” What does the other person want? What are his goals and interests?

If we put ourselves in the other person’s shoes and look at the situation or the transaction from their point of view, we can gain a lot of understanding (and even empathy) and that will help us formulate better plans, strategies, and communications to reach them–and achieve our ends!

Remember Richard’s Business Readiness Process in 2017!

  1. Ensure vigilance through situational awareness.
  2. Do preliminary assessment of tasks and time.
  3. Activate organization or team.
  4. Conduct reconnaissance.
  5. Do detailed situational estimate.
  6. Conduct wargame and decide on optimal course(s) of action.
  7. Perform risk management and contingency planning.
  8. Communicate plan and issue direction.
  9. Build organizational robustness.
  10. Ensure operational continuity.
  11. Lead and control execution.
  12. Assess performance.

Call me for a Business Readiness Briefing in 2017!

Did you know that an infantry battalion only needs about 3 to 4 hours of prep and planning time to be battle ready? What are you waiting for to get the same benefits for your outfit?

Feel free to contact me at any time to discuss your objectives and needs.

And remember… STAND TO!!!

My name is Richard Martin and I’m an expert on applying readiness principles to position companies and leaders to grow and thrive by shaping and exploiting change and opportunity, instead of just passively succumbing to uncertainty and risk.

© 2017 Alcera Consulting Inc. This article may be used for non-commercial use with proper attribution.

Step 11 in the Business Readiness Process: Exercise Leadership

leadership-action-framework

I’ve developed the Leadership Action Framework to improve the understanding of the leadership environment and the roles of leaders before, during and after an event or crisis.

I make a distinction between a normal event (the lower, dashed curve) and a crisis (the higher, solid curve), because the former should in principle be much more frequent than the latter. A crisis is any event or circumstance in which you’ve lost control of your plan and its execution, or you’ve lost the initiative to the competition or opponents.

Crises can’t be completely avoided, but sound leadership before one occurs can help in preventing one, and then mitigating its worst impacts if it does come to pass. Risk management, contingency planning, and operational continuity are part of this equation, but these are directly dependent on the organization’s leaders exercising their leadership to good effect in normal conditions.

Before an event or crisis, the leader’s role is to prepare his or her organization or team for upcoming missions and operations. The key output of “before” leadership is high business readiness. The ideal is to avoid and minimize the likelihood of a crisis. If that can’t be avoided, then at least be ready to deal with one.

During execution, the leader must focus on directing from the front while letting team members to achieve their respective missions and tasks. The leader must provide moral and material support, including building and maintaining high morale and influencing team members to perform at their highest level. During a crisis, morale is dependent on the welfare of “the troops” and an effective leader will ensure that (reasonable) creature comforts, safety, security, and care of subordinates are taken care of.

After execution, the leader’s main role is to maximize individual and collective learning from the event, execution, or crisis. This is probably one of the most challenging aspects of leadership. It’s easy to motivate everyone when there is a crisis or when adrenaline is high because you’re starting to implement your plan. However, once everything’s over, or you fall into a routine, the natural inclination is to let off a heavy sigh of relief and quickly get back to business as usual. That is when the leader must get everyone together for after-action review to generate lessons learned for the team. Even more challenging is to maintain momentum in implementing changes so they become part of the organization’s DNA.

An organization can be at multiple points of the Leadership Action Framework for different projects or departments. Leaders must be flexible and recognize where they are for each one.

Recap of Business Readiness Process

  1. Ensure vigilance through situational awareness.
  2. Do preliminary assessment of tasks and time.
  3. Activate organization or team.
  4. Conduct reconnaissance.
  5. Do detailed situational estimate.
  6. Conduct wargame and decide on optimal course(s) of action.
  7. Perform risk management and contingency planning.
  8. Communicate plan and issue direction.
  9. Build organizational robustness.
  10. Ensure operational continuity.
  11. Lead and control execution.
  12. Assess performance.

My name is Richard Martin and I’m an expert on applying readiness principles to position companies and leaders to grow and thrive by shaping and exploiting change and opportunity, instead of just passively succumbing to uncertainty and risk.

© 2016 Alcera Consulting Inc. This article may be used for non-commercial use with proper attribution.

picture-of-competitive-battlespace  

Step 6: War game your options against your opponents’

 

The first 5 steps of the Business Readiness Process have given us a comprehensive picture and assessment of the Competitive Battle Space. Now it’s time to compare options and select the best one.

 

Competitors and stakeholders have goals and interests that are in conflict or disagreement with our own, so we have to understand and evaluate their intentions before deciding on a definite way ahead. The most effective way to develop insight into enemy and competitor intentions is to develop courses of action from their standpoint.

 

You may believe your plans are brilliant, but nothing beats seeing how your competitors could act and react given your intentions. Short of actual action, war gaming and other forms of simulation are the best means of testing your plans and predicting how they will fare in the real world before trying to implement them.

 

friendly-and-competitor-options

 

comparing-options

 

 

Recap of Business Readiness Process

 

  1. Ensure vigilance through situational awareness.
  2. Do preliminary assessment of tasks and time.
  3. Activate organization or team.
  4. Conduct reconnaissance.
  5. Do detailed situational estimate.
  6. Conduct wargame and decide on optimal course(s) of action.
  7. Perform risk management and contingency planning.
  8. Communicate plan and issue direction.
  9. Build organizational robustness.
  10. Ensure operational continuity.
  11. Lead and control execution.
  12. Assess performance.

 

My name is Richard Martin and I’m an expert on applying readiness principles to position companies and leaders to grow and thrive by shaping and exploiting change and opportunity, instead of just passively succumbing to uncertainty and risk.

 

© 2016 Alcera Consulting Inc. This article may be used for non-commercial use with proper attribution.

 

Step 4: Conduct Reconnaissance

This diagram depicts the elements of military reconnaissance and, by analogy, those of business reconnaissance. The most important thing to understand is that reconnaissance must be mission driven.

The aim of reconnaissance is to generate mission and goal focused intelligence. In other words, you don’t just go off willy nilly trying to figure out what is happening and what the conditions you’re likely to face are.

You must start with you mission, which tells you the effect you want to create. You then develop a general idea of the courses of action you have open, as well as likely responses by your competitors, opponents, clients, suppliers, distributors, and other potential influencing actors. This gives you the proper framework for assessing the environment and finding competitive gaps that can be exploited for success. You can also potentially shape your competitive battle space when you know what it consists of.

The second diagram (below) shows how this relates to our eventual planning and decision-making. We’re not just out there looking around. We’re trying to seize opportunities, notice things others haven’t noticed, and, what’s often forgotten or avoided, protecting ourselves from the downside.

 

Business Readiness Process (BRP)
1.     Ensure vigilance through situational awareness.
2.     Do preliminary assessment of tasks and time.
3.     Activate organization or team.
4.   Conduct reconnaissance.
5.     Do detailed situational estimate.
6.     Conduct wargame and decide on optimal course(s) of action.
7.     Perform risk management and contingency planning.
8.     Communicate plan and issue direction.
9.     Build organizational robustness.
10.   Ensure operational continuity.
11.   Lead and control execution.
12.   Assess performance.

 

Did you know that an infantry battalion only needs about 3 to 4 hours of prep and planning time to be battle ready? What are you waiting for to get the same benefits for your outfit?

Feel free to contact me at any time to discuss your objectives and needs.

And remember… STAND TO!!!

My name is Richard Martin and I’m an expert on applying readiness principles to position companies and leaders to grow and thrive by shaping and exploiting change and opportunity, instead of just passively succumbing to uncertainty and risk.

© 2016 Alcera Consulting Inc. This article may be used for non-commercial use with proper attribution.

Monday STAND TO!

By Richard Martin, Expert in Business Readiness and Exploiting Change

Do you try to mould your future and create the conditions for your success, or do you instead remain passive while others seize the initiative?

The whole point of Business Readiness is to “take the bull by the horns” and shape your competitive battle space for you and your customers. This isn’t simple P&P (preparation and planning). It’s about vigilance, preparedness, and robustness so you see, assess, respond, act, and pounce on opportunities before others see them.
Situational Awareness
Step 1 of the Business Readiness Process (BRP) is…

Vigilance through constant Situational Awareness. Situational awareness requires systems, procedures, and mindset to be on the lookout for changes and trends at all levels–strategic, operational, tactical–of your business and organizational environment. This includes keeping eyes on:

  • Changing customer needs and wants
  • Changing political, social, demographic, cultural milieu
  • Technology, finance, economic factors, etc.
  • Competitors and other stakeholders, including changing alliances, support, and opposition to your goals and strategies
Think of how effective non-business opposition to Keystone XL,
Northern Gateway, and other pipelines has been.
Could this have been anticipated?
Could the companies involved have managed the situation better?
Could they have assessed their courses of action better?
You need…
  1. A consistent and constant watch and evaluation system.
  2. A method and the right mindset and motivation in you and your people.
  3. To decide if this changes your mission and objectives or whether you need to update them.
It starts at the top. If you’re not open to change and ignore signs of imminent disruption, how can you expect your team members to be engaged and motivated for it?
Business Readiness Process (BRP)
1.     Ensure vigilance through situational awareness.
2.     Do preliminary assessment of tasks and time.
3.     Activate organization or team.
4.     Conduct reconnaissance.
5.     Do detailed situational estimate.
6.     Conduct wargame and decide on optimal course(s) of action.
7.     Perform risk management and contingency planning.
8.     Communicate plan and issue direction.
9.     Build organizational robustness.
10.   Ensure operational continuity.
11.   Lead and control execution.
12.   Assess performance.


Did you know that an infantry battalion only needs about 3 to 4 hours of prep and planning time to be battle ready? What are you waiting for to get the same benefits for your outfit?
Feel free to contact me at any time to discuss your objectives and needs.
And remember… STAND TO!!!

© 2016 Alcera Consulting Inc.

This article may be forwarded, reproduced, or otherwise referenced for non-commercial use with proper attribution. All other rights are reserved and explicit permission is required for commercial use.

The “Power Law” is one of the most useful concepts for making predictions and decisions in business and management.

The power law shows how two variables–one dependent, the other independent–covary. Mathematically, one varies as a function of the other by being raised to a certain power (exponent).

The following diagram shows this type of relationship. Often these are depicted on log or log-log graphs, but I show the “power curve” as an asymptote on both axes of the graph to highlight the non-linearity of the relationship between the two variables.

power-law-basic

A concrete example will help. The great majority of earthquakes are of very low magnitude. High magnitude earthquakes are much rarer than low magnitude earthquakes. In fact, their magnitude varies in inverse exponential proportion to the total number of earthquakes. In practice, this means that there are literally thousands of earthquakes every day around the world, but magnitude 6, 7, and 8 ones are much rarer. The most powerful earthquakes of all, over 9 on the Richter, scale are very rare. They can happen only a few times a century, or even less. This doesn’t mean that the magnitude of any particular earthquake can be predicted. It does however imply that given a sufficiently large sample, we will eventually see a frequency-magnitude distribution that resembles the graph above.

This type of relationship is ubiquitous in nature, and that includes our human and social natures. There was a whole book written on this topic–The Long Tail, by Chris Anderson–with emphasis on the right side of the graph. In his book, Anderson described how the internet has made many businesses or ideas viable which would not previously even have been known. He called this the long tail because there are musicians, artists, artisans, crafts workers, professionals, etc. who can provide their productions and services to people around the world, even though they can’t compete with the more traditional providers who dominate markets by occupying the left side of the power curve. This makes for much more diversity and many more opportunities to get known and appreciated, and to develop a following because it lowers traditional barriers to entry and long-term viability.

This type of relationship is also depicted in the following diagram. I show the relationship between number of clients and the number purchases, interactions, or value of each category of client that characterizes the market and product distributions of most, if not all, companies (including my own clients).

power-law-of-clients-and-value

For instance, I’ve been working with a banking client. This graph shows the relationship between number of clients and the number of products/services that each client has with the bank. The total market size for this bank is about 80,000 potential users of its services. Of these potential users of its services, the great majority, about 85 %, have no business relationship with the bank. Of the 13,000 or so that do use the bank’s services, the majority only use less than 3 of over 20 products and services. As we move to the right, there are less clients, but their interactions with the bank are more intensive. In other words, there are are many fewer clients in categories to the right, but they use many more of the bank’s services, which in turn generate much greater value. On the other hand, there are no actual clients who do all of their banking and meet all of their financial needs and objectives, much less use all of the bank’s services. This is why we can depict the lower right part of the curve as an asymptote. You never actually reach complete saturation or use.

We’ve all noticed these types of power-law relationships in our professional and personal lives, our management and business experiences, and even in some natural phenomena. This relationship is often referred to as the 80/20 law, Pareto’s Law, or Zipf’s Law. It shows up in such truisms as: 80 % of my problems are caused by 20 % (rates can vary) of my people; most of my sales and profits come from a small number of sales reps; only a few of my clients provide most of my revenue and profits; this product category accounts for 45 % of my sales, but 70 % of my profits; etc., etc.

The following diagram is a further illustration of the principle. It comes from an online article by Mark McLean of the Toronto Real Estate Board (TREB) and shows an almost perfect example of a power-law distribution in the number of deals done by different categories of real estate agents who are members of TREB.  We can see that only a very small number of agents in TREB can be considered highly successful, prolific even.

treb-gif

Of those agents having completed 6 or less deals in a year, a similar relationship holds, although it’s less stark:

treb-6-and-under

Whatever we wish to call them, power-law distributions and relationships underlie much of the correlations and dynamics that surround us. We can use them in making general predictions and, along with the S-curve phenomenon I described in a previous post, we have two very powerful tools and concepts for understanding the world around us. Moreover, power laws and S-curves are not only ubiquitous, they tend to show what’s called “self-similarity,” or a fractal pattern. I’ll discuss that third powerful concept next week.

© 2016 Alcera Consulting Inc.

This article may be forwarded, reproduced, or otherwise referenced for non-commercial use with proper attribution. All other rights are reserved and explicit permission is required for commercial use.