Does Your Dashboard of Performance Measurements Include a Warning Light?

November 7, 2008 By Leave a Comment

Count me as one of the last idealists.  Or perhaps the last of the naïve idealists.  In a world filled with Quality Management Systems and Performance Measurement techniques backed by legions of people trained to implement and sustain quality performance, it seems reasonable to me that organizations are capable of not only keep themselves from imploding, but that they are armed to the teeth with tools to ensure prosperity beyond the wildest dreams of  Dr. Deming.

As an aside, Dr. Deming once famously indicated that it was his hope that his legacy was to keep U.S. companies from committing suicide.  Perhaps it is good that he is not here to see the firms elbowing each other out of the way in an attempt to get to the front of the line on the edge of the cliff.

  • The U.S. auto companies are almost finished carrying out their joint suicide pact in a world where the rules for success as an automobile company are on display for everyone to see.
  • Motorola, an icon of U.S. electronics has systematically destroyed itself by flailing and flailing in the mobile device (read: cellphone) world, and stands a reasonable chance of failing to survive without drastic action.   (See my earlier post on the Dollar Bill Auction to get a feeling for Motorola’s problems.)  The fact that Motorola is a Baldrige winner, one of the founding fathers of Six Sigma and an organization staffed with brilliant engineers, yet it cannot seem to engineer success is both puzzling and frustrating.
  • Earlier this week, Boeing indicated that they would again delay the launch of its now several years late and much hyped 787 Dreamliner.  The article indicated that the latest problem had to do with quality issues related to a new type of fastener required for the high tech and lightweight materials being used in the plane.  The advance sale of 900 of these puppies at $178 million a piece and the expected 20% fuel consumption savings has customers hopping mad over this latest in a series of seemingly endless project management and supply chain problems.
  • Financial services, banking, investment banking.  Ugh.  These icons of risk management succeeding in maximizing risk beyond their wildest expectations.

How does this happen in a world filled with balanced scorecards and legions of certified quality professionals constantly measuring, monitoring and striving to improve performance?  I suspect that my own answer is that while we have ample tools available for our use in building, the one tool that we haven’t yet mastered is staring back at us in the mirror.

In discussions and lectures with the up and coming generation of leaders, there is widespread cynicism over the intentions and the capabilities of many of their firm’s senior leaders.  There is little faith expressed that their leaders understand their firm’s key drivers and little confidence that the leaders are taking actions and measuring performance based on anything other than preconceived notions of what they think is right.  Fewer organizations than you might think are doing anything to engender employee satisfaction…which is ironic given the mountains of data that indicate that employee satisfaction flows through to customer satisfaction and strong financial performance.

This current generation of senior leaders is failing, and the very imbalanced scorecard is visible all around us.  The business cycle is one thing, but our problems go way beyond the business cycle to our preconceived notions of how to lead, how to run businesses, how to fuel innovation and how to create an environment where talent and calculated risk-taking are carefully cultivated.

Many organizations are hives of activity with no vector and the output is chaotic. Firms and top leaders need to quit guessing and start using the tools available to identify key business drivers and to measure and monitor the efforts and outcomes of focusing on those drivers.

The Bottom-Line for Now:

There’s nothing like a good old-fashioned crisis to engender creativity.  Well, we have one.  In spite of the difficulties, it’s a great opportunity for organizations and leaders to quit paying lip-service to cliché’s like customer-satisfaction, performance excellence and quality.  It’s a big world with a growing population and while the forecast is stormy now, the seas will eventually calm and the sun will shine.  It will be interesting to see who has the courage and fortitude to do the things necessary to make it through the storm.  Even money that we find a whole new generation of leaders in the process.

Filed Under: Crisis Leadership, Leadership, Leading Change, Surviving Lousy Leaders Tagged With: , , , , , , , , , , , , , , ,

Constancy of Purpose In Pursuit of Success

July 31, 2008 By 2 Comments

Deming’s first of his 14 Points for Management reads: Create constancy of purpose toward improvement of product and service, with the aim to become competitive and to stay in business, and to provide jobs.

The phrase, “Constancy of Purpose” strikes me as perhaps the best way I’ve heard to describe that intangible but palpable drive that propels the most effective individuals and the most successful organizations. 

Instead of being singularly focused in pursuit of our goals, most professionals that I know struggle to find even a shred of time to work on the most important priorities.  It’s not that they don’t have the time, but rather, they allow the noise in the environment to keep them from focusing. 

Other individuals fail to recognize their true priorities, or at least they fail to understand how to connect their priorities to the firm’s priorities, and as a result, they work on what they want to, or they do little or nothing at all.  This is as much a leadership failure as it is the failure of the individual.

I marvel at top executives that talk about “empowered employees” and hold round-tables and town-hall meetings in an effort to create the illusion of focus and connectedness, but that fail to figure out how to light the fuse that creates the constancy of purpose in the minds and hearts of every single individual in the organization.  These leaders understand that they are supposed to do something, and as a result, they drive a lot of activities but don’t necessarily create a constancy of purpose in the organization. In military parlance, they are “all action and no vector.”

Organizations and individuals march forward when they have a clear goal and sight and are driven by some deep collective conviction that when successful, the world will be a better place, that they will be better professionals and that their positions and as a result, their families will be secure.  The earlier that a leader understands that creating “constancy of purpose” is a core task, the faster they are on their way to truly fulfilling their obligation and responsibility as a leader.

Creating Constancy of Purpose on Your Team:

  • Don’t assume that everyone around or under you understands why they are there and what their priorities are.  It is up to you as leader to provide this critical context.
  • Constantly focus on connecting your team’s output and activities to the organization’s big picture.
  • In the absence of a broad organization “constancy of purpose” (most environments), it is up to you as leader to manufacture one for your team.  Better yet, engage your team in creating their own overarching purpose.  Just remember that you still need to plug it into the organization’s pursuit of success, however success is defined.
  • The best ideas often reside in the minds of the quietest people.  Create opportunities for the silent but brilliant individuals to contribute.  
  • Everyone drifts from the true north of their priorities—you need to allow an appropriate amount of drift for individuals and teams and no when and how to help them reorient.
  • If you are at the top of the food chain, you do own mission, vision and values, and they need to be much more than posters on the wall in conference rooms and lobbies.  You cannot spend enough time thinking about and working on making the mission, vision and values come alive for the organization.  It’s not a campaign or a one-off meeting…your goal is to make these often trivial and trivialized words serve as the rallying cry and standards for performance and behavior.

The Bottom Line for Now:

Leadership is profession and leading is a true privilege.  This most difficult of all human endeavors—leading, motivating and guiding teams to achieve can be done by seeking compliance or providing inspiration.  I’ll place my bet on the leader that fuels the collective and individual passions of a firm’s employees.  What’s your firm’s Constancy of Purpose?

Filed Under: Leadership, Leading Change, Strategy, Surviving Lousy Leaders Tagged With: , , , , , , , , , ,
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