Skip to content

Archive for December, 2009

Your Toughest Race

Tuesday, December 29th, 2009

Here is an article I published over on FindYourNerve.com in mid-November. With the quickly changing economic outlook, I thought the message is especially pertinent as we head into 2010. Enjoy!

I frequently cut out newspaper and magazine articles that possess a unique perspective on life or business.  Several years ago, newspaper reporter Bruce Brothers of the St Paul Pioneer Press interviewed a gritty Minnesota runner named Luther Thompson.  Thompson, in his late 50s at the time, had been known to enter some of the most grueling running races in the world, including the Leadville 100, a hundred mile race across the Rocky Mountains in Colorado.  When Brothers asked Thompson what his toughest race was, a totally unexpected answer emerged.  Thompson simply replied, “The toughest race is always the race I’m doing, whether it’s a 5K or a marathon or an ultramarathon.” 

 When I read that statement, I was awestruck by its simplicity and wisdom. Thompson was right, even as business leaders, our toughest race tends to be the race we’re running. This might be tackling a problem or pursuing an opportunity that is facing us. And it’s how we work through these issues that will determine how we place in the race we refer to as, business.

 Twelve months ago, the toughest race for most businesses related to how to quickly transition away from growth, due to a sharp downturn in economic activity. Decisions had to be made to align with the new reality we call recession. Each decision held consequences and opportunities. Each positioned the business for success or failure.

 Today, a similar toughest race scenario is beginning to emerge. Suddenly, organizations in survival mode are being challenged with another transition. This transition is about how to grow once again. And this is the take home point. I believe the toughest race for business leaders is to understand how to best lead through transitions. To lead through transitions effectively, one should consider: 

  1. Understand where you’ve been, and recognize where you’re going.
  2. Leverage talent, and keep them engaged and motivated.
  3. Lead from a position of transparency and honesty.
  4. Delve into the tough “what if” issues by asking the hard-hitting questions.
  5. Communicate. Communicate. Communicate.

 In this latest transition, leaders can’t afford to lose their nerve in moving forward. It’s our responsibility to demystify the unknown, create clarity around what’s really important and possess the confidence on how best to move forward. Only then can the toughest race become manageable and won.

 Yes, the toughest race is always the race you’re doing.  Whatever you do, don’t lose your nerve at the starting line, the place where races are won and lost.

The Real Reason…

Sunday, December 27th, 2009

Comic illustrator Gary Larson published a cartoon several years ago that showed 3 dinosaurs hiding in a corner smoking cigarettes with the caption, “The real reason dinosaurs became extinct.” As we exit 2009 and head into 2010, I’m certain that numerous conversations in restaurants, boardrooms and private residences will delve into “The real reason why corporation XYZ failed.” The list of reasons will be numerous, including:

  • China
  • The banking crisis
  • Industry contraction
  • Obsolesence
  • The wrong people in the seats
  • Poor strategic plan
  • Technology
  • Fate - it was eventually going to happen

The list could go on and on. The reasons numerous and varied. They’re all right, and they’re all possibly wrong. I’m convinced that in many situations, “The Real Reason” will be different from what is believed. To the contrary, many companies will fail because of the silent problems inside their organizations. For instance:

  • What problems were being avoided for years, and eventually surfaced with a bang?
  • What problems weren’t being noticed, simply because the organization had adapted to the situaion? Yet in the long run, compromise could only last so long.
  • What problems were being neglected, simply because a good scenario for solving them couldn’t be found?

What I’m presenting here is simple. Over time, silent problems choke the very life and effectiveness of the organziation into submission. YES, silent problems are nasty if left unnoticed and/or unsolved.

New Years Resolution Suggestion: I encourage every organization to conduct a silent problem audit inside their organization and then take steps to solve them.

Toyota’s Mounting Problems

Wednesday, December 23rd, 2009

Have you ever played a game where your opponent didn’t play fair? For instance, a baseball player that had a corked bat or a golfer that deliberately moved their ball to improve the lay. In each of these instances, deliberate acts (cheating) can change the outcome. Well, this appears to be what Toyota has been doing for over a decade.

Earlier in the week, I wrote about how Toyota’s sales had been declining due to lapses in quality, reputation and design. Today, the LA Times in an article titled Toyota found to keep tight lid on potential safety problems states, A Times investigation shows the world’s largest automaker has delayed recalls and attempted to blame human error in cases where owners claimed vehicle defects

In the wake of Toyota’s announcement of the massive recall (referring to the rash of acceleration problems Toyota vehicles have experieced), The Times examined some of the ways the automaker has dealt with safety problems in recent years and found that:

* The automaker knew of a dangerous steering defect in vehicles including the 4Runner sport utility vehicle for years before issuing a recall in Japan in 2004. But it told regulators no recall was necessary in the U.S., despite having received dozens of complaints from drivers. Toyota said a subsequent investigation led it to order a U.S. recall in 2005.

* Toyota has paid cash settlements to people who say their vehicles have raced out of control, sometimes causing serious accidents, according to consumers and their attorneys. Other motorists who complained of acceleration problems with their vehicles have received buybacks under lemon laws.

* Although the sudden acceleration issue erupted publicly only in recent months, it has been festering for nearly a decade. A computerized search of NHTSA records by The Times has found Toyota issued eight previous recalls related to unintended acceleration since 2000, more than any other automaker.

* A former Toyota lawyer who handled safety litigation has sued the automaker, accusing it of engaging in a “calculated conspiracy to prevent the disclosure of damaging evidence” as part of a scheme to “prevent evidence of its vehicles’ structural shortcomings from becoming known” to plaintiffs lawyers, courts, NHTSA and the public.

As a result, plaintiffs attorneys are considering reopening dozens of product-liability suits against the automaker.

If the allegations in the LA Times article is correct, Toyota has been living a life where Silent Problems (in this instance, problems that are being intentionally silenced) have been a normal operating procedure. The allegations are damaging and now that the silence is broken, Toyota’s image and reputation are being challenged and its loyal customer base, compromised.

Prediction: When Silent Problems of the Ice Box variety escape, the resultant impact is huge. What was once under control, is now out of control. Every word is dissected, every claim challenged, every decision questioned. I’m convinced that Toyota is in bigger trouble than most can even comprehend. Don’t be surprised if Toyota is the next G.M. 

Number 1 is the Loneliest

Monday, December 21st, 2009

Most organizations strive to be No. 1. It is the coveted spot. The position where success is realized. The position where trophies for excellence are offered. The position where power is garnered. However, it is also a very lonely and dangerous position to reside, because being No. 1 often breeds complacency and risky behavior.

A case in point is Toyota, a firm I’ve written about several times. Last weeks Economist, the front cover title was, Toyota slips up - Where the world’s biggest carmaker went wrong, and what it is learning from other corporate turnarounds.”

The article points out numerous areas where Toyota has become vulnerable while being in the No. 1 slot. 

  • Quality: “Toyota was a byword for quality and reliability. A few years ago its crown slipped when a number of qulity problems surfaced… For years Toyota has been the quality benchmark for every carmaker, but at the very moment it faltered, others were finally catching up”
  • Style: “As Car Magazine observed recently: ‘Excepting the small cars and the Prius, Toyota’s European range is as appetizing as an all you can eat tofu buffet.”
  • Safety: “Last month Toyota’s standing was dealt a further blow. The Insurance Institute for Highway Safety… announced its highest rated cars and SUVs for 2010… Not one of the 27 vehicles it chose was a Toyota.”
  • Silent Problems: “In another class action suit, triggered by a former employee, a corporate lawyer named Dimitrios Biller. Toyota is accused of trying to cover up evidence that it knew some of its vehicles could be deadly in roll-over accidents… The suggestion that squeaky-clean Toyota’s behavior may have resembled that of Ford and GM, which in the distant past covered up problems with the Pinto and Corvair, is especially wounding.”
  • The Test: The test will be to keep the ingredients that have made Toyota great - the dependability and affordability - while adding the spice and the flavours that customers now demand. It will not be easy, and the competition has never looked more formidable. But by recognising the scale of Toyota’s problems, by proclaiming their urgency and then drawing on the firm’s strengths to fix them, Mr. Toyoda has already taken the first, vitally important step towards salvation.

Over the past 18 months, numerous companies that once held the coveted No. 1 slot have fallen. Consider the likes of CitiGroup, GM, Circuit City, Lehman Brothers and Washington Mutal. And of course, we can’t for forget Tiger Woods, and his fall from high. Each were at the top of the their game - then something happened. Simply, they lost their competitive edge, partly by being Number 1.

Today, Toyota is in a dangerous position. It has lost momentum. It’s reputation has been tarnished. And, many of its customers are finding attractive alternatives. Yes, Number 1 is a dangerous and lonely position from which to lead.

Why Tiger May Never Play Golf Again

Wednesday, December 16th, 2009

Tiger Woods has become an iconic symbol for the game of golf. He represents the power of focus, a strong work ethic, and unwaivering strength when the going gets tough. At least up until a couple of weeks ago, when the veil of secrecy around his personal life was pierced. And now, I’m wondering, what’s next? 

Less than a year ago, I published the book “Without Warning, Breakthrough strategies for solving the silent problems taking aim at your organization.” Over a period of 3+ years I studied silent problems (problems that are being avoided, neglected, are going unnoticed or are being intentionally silenced) and how to unleash them. Along that journey, I came to learn how destructive they can and often become. Well to say the least, Tiger had a Silent Problem of immense proportion. Every day, a new and stranger story seems to emerge. What was initially a surprise, is now becoming bizarre. And what could emerge next, simply incomprehensible. 

Today, commentary is asking this question. When will Tiger Woods return to the golf course? I believe an alternate question is warranted. Will Tiger Woods ever play competitive golf again?

Obviously, everything at this point is speculation, and only time will tell. However, I have seen and studied how silent problems unfold once the veil of secrecy has been broken. It’s not pretty. Which leads me to wonder:

Where is Tiger Woods today?
What is he doing?
Is he well?
Is there a reason why Tiger hasn’t shown his face or addressed his issues in the public spotlight?

I’ve learned over many years working with business leaders that the human spirit is fragile. Stress is unpredictable and can express itself in a multitude of ways. And at times, the invincible can and often are vulnerable. I would encourage everyone to stop looking at Tiger, Inc. as being infallable, but rather fallable. What Tiger, Inc. is experiencing at this moment is immense. The potential outcome - incomprehensible.

So despite the fact that Tiger Woods was named Athlete of the Decade by US Sports Editors today. The next leg of the Tiger, Inc story could very easily become a Without Warning Event that no one saw coming.

Silencing the Organization

Tuesday, December 15th, 2009

The colossal business failures of the past few years underscore the fact that the conduct of a company’s leadership team is directly correlated with the organization’s long term performance. Once venerable institutions such as Bear Stearns, Lehman Brothers, Merrill Lynch and Royal Bank of Scotland paid the ultimate price for the behaviors of their leadership teams.   Lessons from Team Fumbles by  Susan Lucia Annunzio, Chief Executive Magazine, November/December 2009

Organizations come up short and fail on numerous fronts. However this article by Susan Lucia Annunzio delves into one of the most serious leadership traps a leader can fall into - Silence.

* When a leader kills the messenger - the result is silence.
* When a leader doesn’t allow or encourage a difference of opinion - the outcome is silence.
* When a leader doesn’t encourage feedback - silence will ensue.
* When a leader embraces silence - silent problems will germinate, grow and eventually destroy.

The Number 1 reason companies are being destroyed today isn’t for a lack of talent. A lack of money. A lack of passion. The Number 1 reason is that companies and their leaders are enabling silent problems to germinate and grow.

It’s that simple…

Innovation

Saturday, December 12th, 2009

Last night was special - I watched the best film on innovation I’ve ever seen. It was simple, and loosely based on a true story. It was funny. And it delved into the challenges of innovation. The movie was called Kinky Boots. Here is the product description.

For generations, the Price family has made very sensible, very conservative shoes for men. But to save the business from imminent bankruptcy, young Charlie Price turns to an unlikely new creative consultant: a sassy cross-dressing cabaret singer whose outrageous style and wild designs are a breath of fresh air in the stuffy old factory! Fun and original, it’s a must-have movie that proves the best way to fit in is to stand out!

If you want to challenge your organization, pick up this quirky film - it will make you laugh and provide the backdrop for how to think differently about your business and your future.

Denial

Thursday, December 10th, 2009

Denial is a powerful word that connotates  a multitude of emotions. Its also a word that tends to get people and organizations into trouble. Unfortunately the transformation from Denial to Acceptance comes with much baggage, and commonly occurs too late. Too late to make a decision. Too late to pursue an alternative path. Too late to make an impact. Too late to survive its rath. Yes, denial too often becomes a, Too Little, Too Late” scenario. 

It’s no surprise that denial is at the heart of the Silent Problem phenomenon impacting many organizations today as I have written about repeatedly, which is why I found an article that delves into Denial over at Harvard Business, titled, Four Tools for Defeating Denial intriguing. Here are a couple of the excerpts.

Arrogance of power fuels denial. Executives flush with memories of past successes sometimes think that they are above the facts, that the facts don’t apply to them. Deniers prevent change when they give lip service to problems but reject solutions that would require sacrifice or wrenching turns… Deniers gain followers because the “no change; carry on as usual” message is comforting. Doing nothing different or nothing at all — is easy. Everyone has silent veto power. Deniers can simply sit on their hands, miss meetings, lose reports, or let timetables slip. Presto! No change.

Whatever a change agent’s cause — global warming, ending risky financial speculation, reforming pay to reward performance, corporate culture change, or innovation in an established institution — confronting denial is essential

Denial is simply stated, “Trust me, we don’t have a problem.” And without a problem, there is nothing to solve, nothing to discuss and no next steps. In effect, it has been silenced and that’s why its so dangerous! If you’re not looking, you will either adapt to the scenario (which makes the situation normal over time) or it will suddenly hit with great force, which I refer to as a Without Warning Event.  If you want to counter denial, you must follow these four steps (which are in my book Without Warning.

  1. Make the Problem Visible and Memorable: You must turn denial into a problem and then make it visible and memorable for everyone to see. Once this has occurred, its difficult to state that a problem doesn’t exist.
  2. Create a Sense of Urgency: Once the problem is visible, its important to create a sense of urgency. If you don’t, the problem can easily fall back into a state of denial. The easiest means to creating a sense of urgency is to ask this simple question. “What is the risk of doing nothing?” This question will get the problem on track.
  3. Allow Anger, Avoid Fear: If you attack denial, you may have many reasons to be angry, such as why didn’t we deal with this earlier. The challenge is to leverage anger for the positive (i.e. getting your team energized), but avoid fear, which can debilitate your team and your effort.
  4. Influence: When you attack denial, you’re ability to influence will be essential. It’s how you help make the problem visible, but also obtain the resources to get the problem solved.

Bottom Line: The premise of silent problems inside organizations and their impact on performance is gaining acceptance. How companies deal with denial is critically important to the future viability of every organization. Make it happen.

GM’s a Changin?

Tuesday, December 8th, 2009

If you were to look up the term Silent Problem, the iconic symbol for GM would be there. Over the past 30+ years, GM has been a company where culture trumped everything. Well last week, GM finally took a couple baby steps to shake up the team, and hopefully begin to change the culture.  A report over at Bloomberg titled, Whitacre’s GM Culture Fix Moves Up Younger Executives, Women  provides a few insights from various analysts and consultants.  Here they are:

  • “It’s a signal they are serious about getting younger people in and running the place right,” said Thomas Stallkamp, 63, industrial partner at buyout firm Ripplewood Holdings LLC and a member of the team that helped restructure Chrysler Corp. in the 1990s. “This is a culture that was so inbred, so genteel, people were afraid to speak up.”
  • “Most of what has occurred this week at General Motors is about speeding things up and making people more accountable for the decisions they make,” John Wolkonowicz, an analyst at consultant IHS Global Insight in Lexington, Massachusetts.”
  • “Almost by definition, any change is probably good for the company because GM has resisted change so heavily in the past,” said John Casesa, managing partner of consultant Casesa Shapiro Group LLC in New York. “GM’s resistance to change is one of the key reasons for its decline.”
  • “The speed these changes were made with shows this is not the lumbering GM we’ve known in the past,” Michelle Krebs, senior analyst at Santa Monica, California-based researcher Edmunds.com, said in a telephone interview. “It shows that they’re truly trying to transform the company.”

In my book Without Warning, I include a list of seven warning signs that a silent problem is present. Guess what? GM has been continuously inflicted with all seven warning signs. GMs been a place where silence was practiced and Without Warning Events occurred with predictable regularity. The first step for GM in changing the culture is stupidly simple.

         Give every employee a voice!

And then listen. Only then can an organization like GM create and sustain an environement for change.

Bottom Line: GM is an excellent example of what happens when silent problems go unresolved and begin to take over the organization. In a previous blog pose titled “Do Silent Problems Impact Business Performance” I illustrate how silent problems have a direct correlation to business performance.

Executive Read

Sunday, December 6th, 2009

Every Sunday, the St Paul Pioneer Press asks a local business leader what they’re reading and why. This week, Jeff Prouty of the Prouty Project  reviewed my book, Without Warning. Here is the article.

Who: Jeff Prouty, chairman and founder of the Prouty Project, a Minneapolis-based strategic planning and organizational development firm.

What: “Without Warning: Breakthrough strategies for solving the silent problems taking aim at your organization,” by Rodney N. Johnson

Why: After reading a book, I can always tell how much I gained by the number of Post-Its, dog-eared pages, underlined quotes and starred segments. Without Warning is a 127-page book filled with compelling stories  and pithy quotes that can help leaders begin thinking about their game plan for 2010

The book’s premise is that many businesses and organizations have silent problems - problems that are avoided, neglected or altogether unnoticed - taking aim at productivity and profitability. These problems are ready to attack without warning as people adapt to the problems rather than solve them.

Johnson encourages readers to look out for the following yellow flags, which often are telltale clues of something lurking below the surface:

  • Slow decision-making
  • Unnecessary complexity
  • Busy people with insignificant results
  • Incomplete information
  • Low performance standards
  • Spun answers versus straight answers
  • Quesiness in your stomach.

Johnson shares real-life examples of leaders tackling silent problems. I loved the one about Continental Airlines where the new CEO held an all-employee ceremony in the parking lot to burn the nine-inch policies and procedures manual as a way of creating a sense of urgency to eliminate the stifling bureacracy and start over.

I recommend reading this book as 2009 winds down to stretch every leaders thinking for proactive strategies in the New Year.

Be the one to see it coming!

The first leadership book to point out the problem, then hand-deliver the solution.

Without Warning - Rondey Johnson

Learn More

Order Info