"And (End) all that RIGAMAROLE"

LEADERS CREATE IT...AND NEED OTHERS TO UNTANGLE IT

Heading into the weekends I begin thinking about my blog, The 'R' in Saturday; http://jcnsaturday.blogspot.com

Last Friday, while on this quest, and as is often the case, I pulled one of my old standards off the book shelf, one that I likely picked up for 25 cents at a garage sale; Success with Words, A guide to the American Language (Reader's Digest, 1983). A long list of academicians collaborated with its compilations.

"Rigamarole" (also; rigmarole) is the word that caught my attention. It's a word that 'boomers' heard their parents and grandparents use. Somewhat in context it simply carries the connotation of "all that extra stuff." Success with Words used an undated quote from a New York Times editorial of the time that supposedly read;

"The blunt fact is that a foreign government on American shores is preying on American citizens. And notwithstanding the niceties of diplomatic immunity, and extraterritoriality and rigamarole, the response should be equally blunt." (Emphasis, mine)

Some may wonder for a moment, as I did, if that wasn't actually written within the last week but be reminded the quote is pre-1983 and I have no idea what the issue of that day happened to be. 

Even so, I was fascinated, but had a difficult time incorporating it for use for my Saturday post. The next morning, my wife, in a typical and jovial morning mood, used the word in a most interesting way. I hadn't shared my research from the day before but, a bit astonished, I told her that I had just spent some time on that word the day before. So now you know how it got into my thought process and made its way here.

The word has a rich history of its own and while it originally meant and was used differently from what it is, if at all, today, according to the contributors of our source material, "Eventually, in the 18th century, the expression surfaced...meaning a lot of meaningless talk...later also, a sequence of pointless activities."

LEADERS AND THE RIGAMAROLE THEY CREATE

It hasn't been my experience to meet business leaders that intentionally set out to create a bunch of rigamarole, but inadvertently they do. Or, they allow it to come into being and don't recognize it until it has gripped their company. More often than not, they may sense it is thwarting certain initiatives but are unable to identify it for what it is. In reality, rigamarole is the unintended consequence of not paying attention while the foundation of it was laid and built upon.

Large company leaders seem to be plagued by this condition to a greater degree than their smaller brethren, and yet it can be far more devastating to a small to mid-market company.

CLEARING AWAY THE RIGAMAROLE

This isn't anything new or earth-shattering and for many decades consultants and efficiency experts have been working with executives and C-level management teams to cut through the rigamarole. Some of the problem, though, is that a good deal of what is already out there under the guise of best practice and clear thinking becomes nothing more than a bunch of rigamarole as well.

It is here that my experience leaves me and you with just three pieces of advice, 1.) If something isn't working quite the way you envisioned it to, you've probably got a problem with rigamarole, 2.) If you sense that could be the case, find an outside source to engage with about your concern, [could be a Share-group member, trusted business peer nearby] but without that extra set of eyes and ears you won't  get the unvarnished truth as to what it is, and 3.) Understand that whatever rigamarole you have created, or allowed to exist, it can be cleared up in short order once you admit it.

Your Direct Reports probably already know what it is, may have even contributed to it, dislike it as much as you suspect and will be more than willing to participate in the eradication of it. There really is no excuse for it.

Jim Naleid is a Life-long Entrepreneur, Change-Agent and Thought Leader, Managing Director of Naleid & Associates and Regional TEC (“The Executive Committee”) Chair leading a group of executives to become Better Leaders, Making Better Decisions with Better Results. http://www.linkedin.com/in/jimnaleid

Disruptive Forces - What Business Leaders Need to Be Doing Now

Stock markets are hitting new highs. Housing starts are on the rise and home values may have hit bottom and are trending up. The private sector is adding jobs and the unemployment rate is improving while, life for the long-term unemployed or out-of-the-workforce, statistically is not.

Even though U.S. inflation is pegged at 1.6%, every household that does breakfast and dinner at home is feeling the squeeze of higher commodity prices, foodstuffs and the fuel it takes to shop. Insurance premiums; health, auto and liability all are on the rise. Just the other day folks I was with engaged in that old 'game' of "Remember when tap beers were a dime and a gallon of gas was twenty-five cents?"

WHAT ELSE IS NEW?

There is a different answer that's appropriate for the individual investor than might apply to the business leader. For today, my objective is to stick with business.

Managers ought to be thinking seriously about what the most significant disruption to their business could be in the coming months while their charges concentrate on executing the plan that has been entrusted to them. Those that are complacent  and fail to concern themselves with possible and significant disruptions to their business pay a stiff price for doing so.

It's been five short years since the economic disruption spurned by loose banking practices caught up with everyone. Some are convinced banks once again will be at the center of the next disruptive force that could affect your business.

READ BETWEEN THE LINES

Neil Weinberg, Editor-in-Chief at American Banker caught my attention with his recent blog post title, "Beware of the Banking Bubble."[1] Let's face it, since the so-called "Dot.com Bubble" disrupted the easy flow of money thirteen years ago, we tend to pay more than usual attention to bubbles forming, or worse, those that are about to burst.    

Mr. Weinberg voices a concern that hearkens back to the overall attitude bankers held in 2007 and he fears that some of the same are surfacing today. Among other things, he notes that "Compressed net interest margins mean bankers face pressure to under-price risk to win loan business and to look to other questionable tactics to turn a buck." Think fees -  back-end, front-end, small print, you name it. Retail and Commercial borrowers and depositors know what Weinberg is talking about. He then asks a relevant question; "In what imprudent ways are bankers likely to respond to these various pressures?" Great question.

Enter stage right, the Federal Reserve and Ben Bernanke. Edward Luce at The Financial Times opened a recent piece by stating the obvious, "The Federal Reserve under Ben Bernanke has been the only serious economic actor in Washington."[2] If you're leading a company today, it goes without saying that the disadvantage of not being able to print money in order to buy down your own debt handicaps you against your competitors. The good news is that neither can your competitors do so. The bad news is banks will make life miserable for lenders when and if rates head north.

While Luce generally heaps praise on the Fed Chairman, he acknowledges that, "Without the Fed's easy money, the stock market would be languishing and unemployment would be rising." As a former portfolio manager, this scares the (insert your own) out of me. Mr. Weinberg quotes from Moises Naim's[3] new book, The End of Power, wherein the author accurately noted that "When the Fed has met a new problem it has usually engineered a new solution." Note that the Fed has signaled its intent to discontinue this engineered strategy once unemployment falls to 6.5%. Many are urging Bernanke to curtail the practice sooner.

MANAGE THE DISRUPTIVE FORCE

Leaders of any size company ought to be thinking about the next disruptive force that will affect their business and in so doing will make a huge mistake if banking isn't on their short list. Everything from short-term lending to insurance premiums will be adversely impacted when the Fed halts the presses leading to higher interest rates and a less than subtle upward inflationary course.

This is a discussion that must take place within companies, now. Strategy considerations should include everything finance related, including the unorthodox. It might make sense to renegotiate a higher rate on your current short-term or line of credits and lock them in for as long as possible. It might make sense to take advantage of rates and increase your debt on the balance sheet if a three to five year term is offered. If you've contemplated selling out, it might make sense to do it as soon as practical while cheap money is still available to your potential suitors. In other words, pull your team together and put all of the banking "If's" and "Might-make-sense" ideas on the table.

Ben Bernanke has been frequently reminding whoever is listening that "There is only so much the Fed can do." So, manage the potential disruptive force a change in Fed policy will bring to business and banking practices. Move it up on your to-do list, now.

As you if you didn't have enough to concern yourself with!

Jim Naleid is a Life-long Entrepreneur, Change-Agent and Thought Leader, Managing Director of Naleid & Associates and Regional TEC (“The Executive Committee”) Chair leading a group of executives to become Better Leaders, Making Better Decisions with Better Results. http://www.linkedin.com/in/jimnaleid

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[1] Neil Weinberg; Editor-in-Chief at American Banker; "Beware of the Banking Bubble", March 7 2013

[2] Edward Luce; Columnist for The Financial Times; "A good engineer that knows his own limits", March 10, 2013

[3] Moisés Naím (born 1952) is a Venezuelan writer and columnist. He is a Senior Associate in the International Economics program at the Carnegie Endowment for International Peace.

Job Description for Owner and CEO: "RUN THE COMPANY"

Drawing from my own experience, whether leading a division of or building from scratch, no one, including myself, ever asked what or how my job was actually defined. I was there to "run the company." Wasn't that obvious?

In the ten years since leaving a nearly 25-year career in sell and buy-side investment management it has occurred to me that many, too many, of us have led and defined our roles by assumption rather than by clarity. We just "ran the company."

LACK OF DEFINITION

In either case, that of a business owner/entrepreneur or executive that started out lower on the ladder and now is in the C-suite (or facsimile thereof), to my surprise, a great many have found themselves with the responsibility of either running a company or a significant division of it without a clear idea of who they are, why they are and what they are determined to do and how.

In my role as adviser  counselor or coach; common questions I ask of those depending upon me are meant to get leaders to focus on a few very important things.

·         Who are you?

·         What's your job description?

·         Who wrote or defined your role?

·         Are you functioning in that role, as described?

·         How do you see yourself?

·         Have you written your own description of that role?

·         Why not?

We could go on and on with an endless list of questions like these. It just surprise me to find that in virtually all cases, (non-scientific) leaders plow along doing what they believe is expected of them while rarely thinking about the need to clearly define themselves and the role that is not only expected of them but the role they want to play within their organizations.

Once a leader clearly defines who they are and why, they then ought to do the same for each one of their Direct Reports.

WE NEED A...

For the sake of this discussion, let's assume the owner or CEO is the one that decides a position needs to be filled. A discussion with the in-house HR professional follows. Perhaps an outside search firm is engaged. The leader has something in mind and ultimately someone is going to write a job description and initiate the search.

Would you be surprised to learn that it isn't uncommon for the professionally drafted Job Description and the reality of what the CEO wants don't match? There may be two primary reasons why that happens. One, the Owner/CEO hasn't clearly defined their own role and the second becomes as obvious; they haven't personally and clearly defined the role of the talented individual they are seeking.

               

RECRUITING  v. COACHING

Imagine a Head Coach that sends out talent scouts without clearly defining the precise athletic skills, qualities and demeanor of the talent they want. We're all too familiar with athletes that were said to be "the most sought after" but for whatever reasons don't fit or simply flop. Why does that happen?

There are numerous reasons. When and if the Head Coach leaves the search up to others while not clearly defining themselves, their objectives and exactly what they expect of the assistants, and ultimately the athletes, the results speak for themselves.

               

BEST LEADERS TAUGHT BY BEST COACHES

"The breakthrough companies we visited were filled with great coaches - people skilled at helping people do their very best."[1]  Keith McFarland includes a great discussion on the topic under the heading, "The No. 1 Job Of A Leader: Coaching" in his terrific look at high performing companies in Breakthrough Companies. McFarland there notes that, "If managers focus too much on getting the right people on the bus, and not enough on developing the people they already have on the bus, you can bet that bus is headed for some kind of fender bender or worse."

As we all pay more attention to this need and responsibility for leaders to reconsider who they are and why they do what they do, it is critically important that leaders also accept the responsibility they have to clearly define themselves, what they expect of their Direct Reports and finally, to give clear definition to what their company is and why. No one in the HR department can or should be doing this for them.           

Jim Naleid is a Life-long Entrepreneur, Change-Agent and Thought Leader, Managing Director of Naleid & Associates and Regional TEC (“The Executive Committee”) Chair leading a group of executives to become Better Leaders, Making Better Decisions with Better Results. http://www.linkedin.com/in/jimnaleid

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[1] The Breakthrough Company; Keith McFarland; Crown Publishing; p.214, 215