Priority 2-Resources
Projects of any type and size have several things in common, and one of them is that they need resources to be completed.  Resources include, for example, labor, plant and equipment, office supplies, raw materials, manufacturing components, design services, research and development, consulting, software applications and information technology hardware, external support services, and legal support.  Once you have the leadership for a project, it must then be staffed and resourced in order to move forward.  Obviously, if there are no resources, the project does not have much of a chance for success, does it?  It is up to the leadership to formulate the project plan, which should outline the objective, define the deliverables and the duration, estimate the cost, identify the activities to be accomplished, categorize the resources needed, and estimate the return on investment (ROI) of the project.  This information is used by executive management for project evaluation and approval or disapproval.

Priority 3- Communication
Most publications written about the Project Management discipline list communications as a very critical factor in the success of a project, and I agree.  Some surveys show that poor project communication accounts for approximately 50%-60% of project failures.  Proper communication takes time, it takes discipline, and it takes the establishment of rules and standards for the project team, including the sponsors and customers.  Communication comes in two flavors, formal and informal.  All information that is communicated, formal or informal, should have 3 key attributes; timely, accurate and relevant.

Priority 4- Accountability
Accountability has different meanings to different people, but the most accepted understanding is that someone will be answerable to others for their actions.  In many PM disciplines, there are adequate levels of documented responsibility for a project, but there is often a severe lack of “accountability” within the project.  I was once told by a PM that “I have never missed a due date”.  After sitting in on a few project status meetings, it became clear to me that the PM had a pattern of changing the due dates on the tasks, without challenge.  That is an example of a lack of accountability.  No matter what our role or responsibility, we should be held accountable for our actions.  An effective PM discipline must include a process for handling accountability.   I believe that responsibility and accountability are attached at the hip; they are a matched set of attributes found in every role within the enterprise and definitely within the PM discipline.
Emphasizing responsibility and accountability is a critical factor for having an effective PM discipline.  Responsibility is a matter of understanding the what, when, where, how and how much a position is obligated to manage within the enterprise.  Responsibilities are the parameters for the jurisdiction of a given position within the project; whether a PM or team member, everyone has responsibilities.  Accountability means that each participant in the project knows what their responsibilities are and that they must answer for their actions taken while performing these responsibilities.

Priority 5-Process
There are libraries full of publications defining PM processes, of which there are many.  Our objective here is to outline the key factors that an effective PM discipline will contain.  Each enterprise will deploy the method and level of sophistication that they feel works best for the types of projects they sponsor, and the capabilities of their PM team personnel.  Our key formula for a successful project is that we maintain a balance between the project deliverable, the project cost and the project duration in comparison to the project plan — while meeting the sponsor’s (customer’s) expectations.  It is the process that provides the structure of the project life cycle defined as Initiating, Planning, Execution, Monitoring/Controlling and Closing.  Each organization has their own process or structure that they are comfortable with for their projects, but in one form or another, they should include these 5 components.

Bulletin:  Tools are instruments used to assist in getting a result.  Tools by themselves do not get the result unless they are in the hands of a knowledgeable user.  Here is a tool to help get to the core of a problem;

The tool is called “WHY”.

This is a multiple function tool that can help anyone get to the key issues causing a problem so that it can be resolved effectively.

Function One; Use WHY in the form of a question when someone brings you a problem and use it until you cannot use it any more.

Example:

My car won’t run.
WHY?
It won’t start?
WHY not?
When I turn the key, I just hear a clicking sound.
WHY do you think it clicks?
Maybe it’s the battery.
WHY do you think it is the battery?
It has been taking longer to start the past several weeks.

Result: Start by checking the battery

Function Two: Use W.H.Y as an acronym to help to prompt the questions that need to be asked when searching the core issues of problems;

W-What is the problem?
-Gather as many symptoms as possible.
- Create a detail description of the problem

H-How do you think it happened?
-Gather as many possibilities for the cause of the problem as possible

Y-Your action taken so far?
-Gather the actions taken and results of the action taken (in great detail)

It’s a process of elimination once the information is gathered using the WHY Problem Solving Tool.  Some resolutions will be obvious and others will be more obscure, but keep asking WHY and probing with the What, How, Your Actions and you will get to the core of the problem more efficiently.

Getting to the core of any problem is key to a timely resolution.  Using the WHY tool is one way to approach the situation.

Let us know which problem solving tools you use!

The first thing you need to come to grips with is that there is a practical definition of collaboration.  Practical! Why practical you ask?  I believe there is a difference between the practice and theoretical application of collaboration.  Let’s look at a couple definitions and I think you will get my point.

New American Heritage Dictionary (2^nd College Addition) definitions:

• Collaboration:  “To work together in a joint intellectual effort”

• Cooperation: “To work or act together toward a common end or purpose”

Do you see the difference between collaboration and cooperation?  Neither do I.  That is why I believe that most organizations that claim to be collaborating are either using a tool like CRM/ERP or they are “cooperating” per these definitions, but I don’t think they are collaborating.

Let me provide you with a “practical” definition of collaboration that I believe will change your way of doing business and reduce those problems and issues, that definition contains three components;

Let’s review the 3 C’s of Collaboration

1.       Communication- Two way, real-time and factual value-based information.

a.      Two-way means to have mutually beneficial communication between the group or person you’re collaborating with.

b.      Real-time means immediately or within the next hour or two, not by the end of the day or next week, month or quarter.  Meaningful actions require timely information.

c.        Factual value-based information describes filtered information that is valuable to the recipient immediately upon receipt in order to perform a task or make a decision.  Data is just numbers, symbols, and letters.  Assemble them into a stream of words and formulas, and you have information.  Filter the information into the key components required to resolve issues without delay and you have “value-based” information.

2.      Cooperation-“The working together toward a common end or purpose” is still a valuable component to our definition of collaboration.  It is incomplete because it does not define HOW the collaborators should work together.  It says for a “common end or purpose” but it does not say for the benefit of whom?  Next time you’re audited by the IRS or SEC, ask who is going to benefit most from the cooperating.

3.      Commitment-“The act of pledging or entrusting one-self to a particular position or relationship”.  Commitment takes collaboration to an important new level.  It establishes a relationship between the collaborators that states that they both are pledging to do everything in their power to make the other party successful in the process.  Successful means that each party derives the benefit they were expecting from the relationship.

Take the 3 C’s of Collaboration and look at how you deal with your employees, your customers, your owners, your vendor/suppliers, and all your other stakeholders (practice SRM™-another solution to come), and you will be amazed how the problems and issues you have today will become images of the past.

If you have experiences with Collaboration, I would like to hear your story, leave a comment.

Managing a business requires a broad set of skills and attention to all parts of the business. Many CEO’s are good at making or selling “things” (goods and service offerings) but some don’t spend enough time monitoring the overall health of their business. Keeping close tabs on the performance of the business is critical, particularly as our economy works its way through this recovery. The easiest things to monitor are sales and cash in the bank, but that is only part of the picture. Positioning the company for growth requires additional effort to understand and monitor not only sales but also those activities that impact profitability and cash flow.  A key to successfully growing the business is identifying a set of key metrics that provide the visibility to help chart the course for the company’s growth, let’s review “What to Measure:”

Margins - The first step is to understand your gross profit margins (sales minus cost of sales). Begin by segmenting sales into groups of products or services that are similar, such as product families. Segment the cost of products and services into those same groups or product families. This will enable the monitoring of margins by product family and make decisions about pricing and position you to monitor costs in each product line.

Expenses – Next, monitor those costs that create and market the products and services, such as research and development, marketing and sales expenses. To the extent possible, group the costs to design and market products so that those costs can be compared to the margins generated by the sales of those products to facilitate decisions about continued and new investment.

Receivables – Once the products and services are sold and the quicker the receivables are collected, the sooner the cash is available for supporting the business. Speeding collections starts with taking orders accurately, invoicing correctly and following up with customers to ensure that all steps have been done by the company to support the customer’s approval process. Measuring these key steps will help reduce issues and speed collection resulting in better cash flow and reduced write-offs and increased profits

Inventory – If the company creates or buy products for resale, measure how quickly the overall inventory turns (inventory used or sold), and if the company has a process that supports it, measure how quickly groups of inventory turn. Every dollar tied up in inventory is a dollar in cash unavailable for other operating needs.

Operations – Look for operational metrics such as employee counts, number of hours billed, square footage, etc. Besides looking at those operational metrics, try to combine financial metrics with operational metrics to provide a fuller picture of the business.

Measurement steps – Create a scorecard using a spreadsheet or by purchasing a scorecarding product. In either case, look for a balance between the level of effort to collect the data and the frequency of providing the information. Start at a higher level of information and keep it simple. Add more complexity as additional areas are identified that warrant more analysis. Look at the trends in the metrics over several years to get a big picture view about where things are improving and where attention is warranted. Also, check with the bank to get industry standards so that a baseline can be established for comparison purposes.

By frequently measuring the important trends in any business the management will be in a better position to control the growth of the business.

Let’s explore the attributes of effective teams:

Definition of an effective team- An effective team “is a small group of people who are mutually accountable to achieve a common purpose and performance goals through their collective talents and collaboration.” (Kristiina Hiukka, BigAgendaCoaching.com)

8 Attributes of an effective team leader:

• Creates a compelling mission for the team
• Knows the priorities:  1. team mission, 2. team, 3. individual members and 4. themselves
• Communicates concisely, clearly and openly (communication occurs when both sides understand what the other is trying to convey–until then it is just talking)
• Encourages feedback
• Supports and encourages diversity
• Supports members by mentoring and coaching
• Delegates authority and accountability
• Selects members for their skills and desire to participate
• Promotes continuous improvement
• Fosters a positive team culture

7 Attributes of an effective team member:

• Strong discipline skills
• Good communicator
• Proponent of working in teams
• Enjoys collaboration with other member
• Self motivated
• Strong work ethic
• Self-directed within team roles and responsibilities

10 Attributes of an effective team:

• Clear purpose
• On-going supportive leadership (coaching/mentoring)
• Enabling processes and structures
• Supportive organization
• Members possess the “right” skills
• Commitment and trust of members
• Clear roles and responsibilities
• Clear team ground rules and protocols
• Open communication
• Performance goals and accountability
• Adequate resources
• Support group diversity
• Members are us-directed
• Self-directed
• Driven to continuously improve

Intentions-These are deliverables that are planned to be delivered in the future.  This is the weakest of all metrics.  It is difficult to see how an organization could build a compensation plan around rewarding for nothing more than “hope”.  Yet, many corporations reward senior management for just that, “they had great intentions”.  We even re-elect politicians based on their “intentions”, and we seem to accept that metric over and over again.  I am not sure why?  If you want to grow a culture of discontent within your company, reward your management for intentions.

Actions-These are deliverables that are focused on activity.  An associate of mine uses the tag line “doing=1/2 done”.  One of my favorite sayings is “don’t confuse efforts with results”.  Rewarding actions or effort is a way to move initiatives forward, but not a way to get them done.  I can see a compensation program that would breakdown a larger project into steps or stages, and reward based on the number of steps completed, but there are very few other examples to support rewarding actions.  Rewarding actions will not hold the workforce accountable for the end result, yet there are a large number of organizations that do just that; reward the starting of something, but not the completion of it.  Unfortunately, it appears many governments (local, State and Federal) seem to have adopted this method for rewarding their agency officials.

Results-Results are definite deliverables.  These are usually dates, dollars, ratios, numbers or other such “objective” measurements.  They are tangible events that can be tracked and measured.  Compensating your management and workforce based on results will provide a greater level of accountability to your company.  Without accountability, the enterprise will aimlessly move forward in a manner much like a sailing ship without a rudder.

Diluted Leadership-Unfortunately I’ve noticed a decline in the level of “Leadership” in the US over the past few decades.  Too often, C-Level executives are more concerned about their own careers and compensation than the overall performance of their corporation.  Political Correctness continues to be a filter used before decisions are made and actions taken.  These diluted leaders are not leading.  You don’t find them rolling up their sleeves and taking a position in front of their company, saying “follow me”.  No, they are behind closed doors, sending out others to experiment with their plans, and if successful, then they surface to gather the spotlight.  I like to call these diluted leaders “empty suits”, and there are many major fortune 1000 companies that have employed these empty suites.  True leaders set attainable deliverables and hold everyone accountable to the process of reaching those deliverables, even themselves.   They are not afraid of holding themselves and their executive team to the same levels of accountability as they do the rest of the workforce.

Unionism- Although this may not be popular with unions and some union members, I believe that most unions have outlived their original purpose and are not providing constructive benefits to their members.  There are certain  skilled trade unions that maintain standards and require continuing education to upgrade the skill level of their members, but a vast majority of unions go far beyond that objective.   For example, anytime a union recommends a strike to its membership, and goes as far as to whip them into a lather to carry out a strike, I believe it has gone beyond its usefulness to its members, the companies employing their members and the economy.  My experience with unions over the years has convinced me that no one wins when a workforce goes on strike.  The enterprise loses momentum and both the company and the union members are often unable to recover from the financial losses they incurred,  possibly for several years.

Unions can promote an unhealthy level of entitlement within their membership.  Ironically,  if there was true corporate leadership (not diluted leadership) within more companies, unions would be less popular.

Executive Compensation- Nothing leads to the heightened level of entitlement thinking in a company more than an unreasonable level of executive compensation.  A few research studies that I have read state that over 75% of the fortune 500 executives receive over 400x more than the compensation of the average American worker.  European and Japanese executives have been reported to receive approximately 130x and 40x  their respective average workforce compensation levels.  When a workforce sees under-performing executives receive bonuses or exit packages in the $millions, it is difficult for the non-executive workforce to be understanding when the company then claims that they do not have the finances to compensate the average workforce more fairly.  The crux of it is that although the general workforce may actually be compensated fairly, because the executive levels were compensated so unreasonably high, a sense of entitlement and discontent grows within all levels of the company.

Government Growth-Governments at all levels, Municipal, State and Federal are growing.  One study recently reported that approximately 25% of the total US workforce is employed by government or governmental support organizations in one way or another.  Despite good intentions, governmental organizations have never been shining examples of efficiency and effectiveness.  A growing number of workers are searching out government positions because the job security and benefits are generally higher than the private sector, often with fewer required work hours-further fueling the entitlement attitude. Less accountability, union protection, lower levels of accountability, political filters applied to performance and a “don’t make waves and you’re safe” culture is a toxic breeding ground for entitlement attitudes.

Personal comments: My fear is that we are slowly following in the footsteps of the European Union.  In the book Mind Set! (John Naisbitt), he states that the European Union leaders commited themselves to creating “the most competitive and dynamic knowledge-based economy in the world by 2010″.  What have they accomplished since that commitment;  Higher taxes and bigger governments, less innovation, slower productivity growth, restrictive labor laws and declining export market share and rising protectionism.  Naisbitt further states “Europe is increasingly losing ground in trying to become the world’s economic driver, because it dearly embraces what one of its famous sons, Sigmund Freud, wrote: “It is easier to suffer than to act.” The EU countries all have a strong culture of entitlement which is part of the reason for their anticipated shortfall for 2010.

Professional organizations spend a great deal of time and financial resources advertising that they are full service; yet, I continue to find customers that are very dissatisfied with the services they receive.  Relying on good faith and advertising claims, when selecting a full service Professional Service organization to support your needs, is not always enough to ensure satisfactory results.  Here are a few thoughts to keep in mind.

The Deception

The deception, intentional or not, is that professional organizations advertise and represent themselves as being “full service” when they are not; at least not to the degree that the client expects.  Examples of professional organizations that represent themselves as being “full service” are those entities that provide legal, accounting, investment, banking, insurance, engineering, and/or a variety of other consulting services.  In most cases, these service providers are extremely professional, highly skilled and ethical.  The client gets short-changed, however, when the service they need is a subordinate skill within the full service provider.   The client receives results, but not to the level they expected based on the description that the “full service” provider promised. Why is this happening?

Hasty Diversification

Service Providers need cash flow to operate like any other business.  Diversification is a way, if done correctly, that they can expand their revenue base.  Those Service Providers that hold true to their core skill-set usually maintain exceptional customer loyalty.  Those who diversify too quickly, into sectors they are not highly experienced in, run the risk of upsetting customers, losing business and ultimately suffering revenue losses.

When a Service Provider decides to diversify, it is important that they seriously consider and evaluate the risks associated with moving away from their core skill-set and operating culture. Often, when a firm diversifies, they choose not to make the financial commitments that are necessary in order to go first class.  They instead put their “service toe” in the water to test the “revenue” temperature, before making a true commitment (i.e. allocating finances for research, training of existing employees and/or hiring experts) to the expansion.  In the meantime, they advertise and prematurely represent themselves as “full service”.

Unfortunately, this is a common scene for many struggling companies. There are accounting firms that offer bookkeeping, tax, insurance, investment and retirement planning services. There are banks that offer banking, planning, investment, and retirement products.  There are legal organizations that offer a wide array of legal services (personal, corporate, wills/trusts, real estate, etc.) and business development services.  There are sales/marketing firms that offer marketing, web development, social media advertising, branding, graphics, and customer care support.  Each of these companies may spread themselves too thin with hasty diversification. They all have a core skill set and operating culture that made them very proficient in a particular area, but not in all.  So what to do?

Know that “Full” Service may not be synonymous with “Fully” Satisfied

As the prospective client, it is your responsibility to select the Service Providers that meet your needs.  You may not need the “world class” provider, but you want to make sure you have selected a firm that will leave you fully satisfied with the results you receive.  Here are a few steps you can take to improve your chances of receiving the services you need:

• Look to referrals from trusted colleagues that had a similar need and were satisfied with the results.
• Ask your other Service Providers for a referral.
• Regardless if a referral or not, provide the prospective firm with a detailed, written requirement of the services you need and the results you expect to receive.
• Interview the principals whenever possible.
• Ask detail probing questions about “how” and “who” will perform the service you are requesting.
• Ask if they provide frequent progress reports as to the status of your project.
• Have a written contract that clarifies the deliverables in detail.
• Don’t be afraid to question unclear situations or statements—YOU ARE IN CHARGE.
• If along the way, their weaknesses surface, try to get them back on track. If you are unsuccessful, don’t be afraid to terminate the relationship and move on.

Most enterprises gravitate to the “Full Service Provider” out of convenience.  They do not want to take on the role of a “general contractor” that works with multiple Providers offering separate skilled services.  This approach may initially require more time and energy, but long term it may also save you money (in fees and delayed revenues) and provide more desired results.

The recession is short lived in comparison to the damage that management can do if they do not handle the down turn correctly