Dale Furtwengler - The Invaluable Leader: July 2006

The Invaluable Leader by Dale Furtwengler

Building an Image
Monday, July 31, 2006

Want to build a great image?

Quit thinking about yourself!

Is the public's image of your company what you'd hoped it would be? When you hit people with your 30-second elevator speech do their eyes glaze? When they see your ads do they turn the page or channel surf? If so, you've probably fallen into the trap of thinking about your company instead of your customer.

When creating an image it's natural for us to focus on what's important to us - what we think the customer will value. That happens because, by virtue of our humanity, we are egocentric. We think of ourselves first. That's true of our customers and prospects as well. That's why we need to create an image that reflects what's important to them.

Let's take a look at company that has suffered an identity crisis and how it's remedying that situation. Daimler, the maker of Mercedes Benz, reflected the image their customers wanted - the image of success. Chrysler reflected the image of the working man who enjoyed style at an affordable price. Both companies' images clearly reflected what their customers felt about themselves. Then they merged an identity crisis ensued.

Neither Daimler's or Chrysler's customers knew where they fit into this new venture. Mercedes customers felt that their image of success had been diminished. Those who viewed themselves as sytlish and practical found it difficult to relate the wealthy Mercedes customers.

Today, Dr. Z, the Chairman of DaimlerChrysler, is working to correct that mistake. The ads run today show buyers how DaimlerChrylser products benefit them, regardless of where they fall on the economic scale. By converting its attention to their customers and creating an image that reflects their customers' interests, DaimlerChrysler is quickly building a readily identifiable image with its customers.

If your company's image isn't what you'd hoped it would be ask yourself, "Does my image reflect my interests or my customers' interests?"

If you have questions on building your company's image or suggestions for future Invaluable Leader topics, email me at invaluable@furtwengler.com.

Available August 1st - Special Report: Avoiding Organizational Bloat, simply click on Special Report tab to order your copy.

Constant Battles and Emerging Trends
Monday, July 24, 2006

What do Harvard archaeologist, Steven LeBlanc and former Intel CEO, Andrew Grove have in common?

They share a common belief about emerging trends.

In his book, Constant Battles, Steven LeBlanc says that mankind's history of war can be traced to one thing, denial. All cultures, from tribes to superpowers, ignore the early warning signs of declining resources. When reality finally sets in there is typically only one option left - taking needed resources from others. In other words, war.

Mr. Grove, in his book Only the Paranoid Survive, credits middle management with shifting resources to meet changing market needs while senior leadership wallows in denial. His assessment of senior leadership's ability to deal with declining markets is honest and frightening. How do you avoid these problems?

Establish a regime of early and deep investigation of emerging trends. Here are some things you can do to avoid falling into the denial trap:

Have metrics that make it easy for you to project future revenues
At the first sign of declining revenues, visit your customers; learn what they're hearing from their customers
Visit your employees in sales, production, shipping (they often have information you don't have)
Create a plan for adapting to the trend without starting a war
Institute the plan on a limited basis
Assess the results of the new plan
Modify the new plan as needed, then deploy fully

Counter-intuitve thinking is about overcoming our natural tendencies. Denial is one of the most devastating natural tendencies we have. The good news is - it's within your power to control. Become invaluable! Help your organization quickly identify and deal with declining trends.

If you have any questions or would like to see specific topics addressed, please email me at invaluable@furtwengler.com

Hiring the Best
Monday, July 17, 2006

Generalist, Specialist or Leader

An often overlooked consideration

Our natural inclination is to hire the technical skills we need. Successful hiring practices today employ some form of behavioral interviewing in an attempt to learn more about the applicant's value system and approach to problem-solving. Yet, we often forget to ask whether the applicant prefers to be a generalist, specialist or leader. Why is that important?

First, you avoid The Peter Principle. Laurence J. Peter's book, The Peter Principle, describes countless examples of people being promoted to a level of incompetence. One of the primary reasons is that we try to convert specialists into leaders. Leaders, by nature, are generalists. They have an interest in and develop backgrounds in a broad array of disciplines. They realize that leadership demands general knowledge.

Second, to be successful as a specialist you need to be at the top of your field. Your focus needs to be on improving skills in your specialty. Learning how to effectively lead others will distract you from your goal. What does this mean for your hiring practices?

If your organization is large enough to employ specialists, make it a policy that you won't promote specialists into generalist roles without:

exploring the reasons why they want to change
assessing their ability to make the transition
providing leadership training/coaching/mentoring
providing a probationary period to guage their effectiveness as leaders
allowing them to return to their previous job if that's a better fit

If your organization is small, everyone needs to be a generalist. The flexibility of generalists is imperative in small organizations. Don't hire specialists. Contract for the specialist services you need when you need it.

When hiring leadership talent remember that while all successful leaders are generalists, not all generalists are successful leaders. Leadership candidates need to be generalists and leaders.

Employee Theft
Monday, July 10, 2006

A matter of perception?

More than you think.

Recently one my clients discovered theft by an employee they trusted implicitly. How does this happen? Are employees who steal simply good actors? Not really. In their minds they're not stealing, they're balancing the scales.

These employees feel slighted - they were overlooked for a promotion, their raise was delayed, the raise doesn't reflect the value they provide. In general, they feel that they didn't get the recognition they deserve. They respond by "taking" what's owed them.

How do you avoid this dilemma? Follow these simple steps:

Have clearly-defined, measurable goals with daily or weekly feedback
When expectations aren't met, ascertain quickly whether it's a system problem or a morale problem
If it's a system problem, fix it immediately
If it's morale, help the employee(s) understand the source of their dissatisfaction and encourage them to take action that's in their best interests
Terminate quickly (within 2 to 3 weeks) if morale doesn't improve

Does that sound harsh? It may, but 30+ years of experience has taught me that either morale improves quickly or not at all. I've spent months trying to help unhappy employees overcome their dissatisfaction to no avail. Do your dissatisfied employees, yourself and your team a favor, terminate unhappy employees quickly. If you don't, you're inviting them to steal.

It's counter-intuitive, but your best anti-theft devices are clear goals, frequent feedback and rapid response to deteriorating morale.

Pricing and Name Awareness
Monday, July 03, 2006

Does pricing help build name awareness?

It may, but not necessarily in the way you intend.

A new residential home builder told me that his prices were 10% lower than large builders in the area. When I asked why, he said "I don't have the name recognition they do."

Is pricing a viable approach to creating name awareness? It is if price is your differentiator as it is for Wal-Mart. If not, you're sending conflicting messages to the market. Let's see how that works.

The builder mentioned above was convinced that his quality was better than the big boys. I asked him to imagine the following:

his and two well-known competitors' ads appeared side by side
their subdivisions were within a few miles of one another
all three offered similar size homes, floor plans and amenities
his prices are 10% lower

I asked him, "If you were a buyer reading those ads, what impression would you get?" His response, "That we're skimping on quality." Indeed, he was creating name awareness - awareness that his quality was poor. Exactly the opposite of what he believed to be true!

Intuition may tell you that low prices are a good way to gain name awareness. Counter-intuitive thinking reminds you that your pricing sends a message. Is it the message you intend?

Dale Furtwengler

Dale Furtwengler is an internationally acclaimed author whose work is recommended by:

University of Glasgow
University of New South Wales
Australian Institute of Management

If you'd like to make your life easier while creating enviable results, subscribe to my special reports for step-by-step instructions on becoming invaluable. Back issues are available.

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	Building an Image Monday, July 31, 2006 Want to build a great image? *Quit thinking about yourself!* Is the public's image of your company what you'd hoped it would be? When you hit people with your 30-second elevator speech do their eyes glaze? When they see your ads do they turn the page or channel surf? If so, you've probably fallen into the trap of thinking about your company instead of your customer. When creating an image it's natural for us to focus on what's important to us - what we think the customer will value. That happens because, by virtue of our humanity, we are egocentric. We think of ourselves first. That's true of our customers and prospects as well. That's why we need to create an image that reflects what's important to them. Let's take a look at company that has suffered an identity crisis and how it's remedying that situation. Daimler, the maker of Mercedes Benz, reflected the image their customers wanted - the image of success. Chrysler reflected the image of the working man who enjoyed style at an affordable price. Both companies' images clearly reflected what their customers felt about themselves. Then they merged an identity crisis ensued. Neither Daimler's or Chrysler's customers knew where they fit into this new venture. Mercedes customers felt that their image of success had been diminished. Those who viewed themselves as sytlish and practical found it difficult to relate the wealthy Mercedes customers. Today, Dr. Z, the Chairman of DaimlerChrysler, is working to correct that mistake. The ads run today show buyers how DaimlerChrylser products benefit them, regardless of where they fall on the economic scale. By converting its attention to their customers and creating an image that reflects their customers' interests, DaimlerChrysler is quickly building a readily identifiable image with its customers. If your company's image isn't what you'd hoped it would be ask yourself, "Does my image reflect my interests or my customers' interests?" *If you have questions on building your company's image or suggestions for future Invaluable Leader topics, email me at* *invaluable@furtwengler.com. Available August 1st - Special Report: Avoiding Organizational Bloat, simply click on Special Report tab to order your copy.* 0 comments Constant Battles and Emerging Trends Monday, July 24, 2006 What do Harvard archaeologist, Steven LeBlanc and former Intel CEO, Andrew Grove have in common? They share a common belief about emerging trends. In his book, Constant Battles, Steven LeBlanc says that mankind's history of war can be traced to one thing, denial. All cultures, from tribes to superpowers, ignore the early warning signs of declining resources. When reality finally sets in there is typically only one option left - taking needed resources from others. In other words, war. Mr. Grove, in his book Only the Paranoid Survive, credits middle management with shifting resources to meet changing market needs while senior leadership wallows in denial. His assessment of senior leadership's ability to deal with declining markets is honest and frightening. How do you avoid these problems? Establish a regime of early and deep investigation of emerging trends. Here are some things you can do to avoid falling into the denial trap: Have metrics that make it easy for you to project future revenues At the first sign of declining revenues, visit your customers; learn what they're hearing from their customers Visit your employees in sales, production, shipping (they often have information you don't have) Create a plan for adapting to the trend without starting a war Institute the plan on a limited basis Assess the results of the new plan Modify the new plan as needed, then deploy fully Counter-intuitve thinking is about overcoming our natural tendencies. Denial is one of the most devastating natural tendencies we have. The good news is - it's within your power to control. Become invaluable! Help your organization quickly identify and deal with declining trends. *If you have any questions or would like to see specific topics addressed, please email me at invaluable@furtwengler.com* 0 comments Hiring the Best Monday, July 17, 2006 Generalist, Specialist or Leader *An often overlooked consideration* Our natural inclination is to hire the technical skills we need. Successful hiring practices today employ some form of behavioral interviewing in an attempt to learn more about the applicant's value system and approach to problem-solving. Yet, we often forget to ask whether the applicant prefers to be a generalist, specialist or leader. Why is that important? First, you avoid The Peter Principle. Laurence J. Peter's book, The Peter Principle, describes countless examples of people being promoted to a level of incompetence. One of the primary reasons is that we try to convert specialists into leaders. Leaders, by nature, are generalists. They have an interest in and develop backgrounds in a broad array of disciplines. They realize that leadership demands general knowledge. Second, to be successful as a specialist you need to be at the top of your field. Your focus needs to be on improving skills in your specialty. Learning how to effectively lead others will distract you from your goal. What does this mean for your hiring practices? If your organization is large enough to employ specialists, make it a policy that you won't promote specialists into generalist roles without: exploring the reasons why they want to change assessing their ability to make the transition providing leadership training/coaching/mentoring providing a probationary period to guage their effectiveness as leaders allowing them to return to their previous job if that's a better fit If your organization is small, everyone needs to be a generalist. The flexibility of generalists is imperative in small organizations. Don't hire specialists. Contract for the specialist services you need when you need it. When hiring leadership talent remember that while all successful leaders are generalists, not all generalists are successful leaders. Leadership candidates need to be generalists and leaders. 4 comments Employee Theft Monday, July 10, 2006 A matter of perception? *More than you think.* Recently one my clients discovered theft by an employee they trusted implicitly. How does this happen? Are employees who steal simply good actors? Not really. In their minds they're not stealing, they're balancing the scales. These employees feel slighted - they were overlooked for a promotion, their raise was delayed, the raise doesn't reflect the value they provide. In general, they feel that they didn't get the recognition they deserve. They respond by "taking" what's owed them. How do you avoid this dilemma? Follow these simple steps: Have clearly-defined, measurable goals with daily or weekly feedback When expectations aren't met, ascertain quickly whether it's a system problem or a morale problem If it's a system problem, fix it immediately If it's morale, help the employee(s) understand the source of their dissatisfaction and encourage them to take action that's in their best interests Terminate quickly (within 2 to 3 weeks) if morale doesn't improve Does that sound harsh? It may, but 30+ years of experience has taught me that either morale improves quickly or not at all. I've spent months trying to help unhappy employees overcome their dissatisfaction to no avail. Do your dissatisfied employees, yourself and your team a favor, terminate unhappy employees quickly. If you don't, you're inviting them to steal. It's counter-intuitive, but your best anti-theft devices are clear goals, frequent feedback and rapid response to deteriorating morale. 0 comments Pricing and Name Awareness Monday, July 03, 2006 Does pricing help build name awareness? *It may, but not necessarily in the way you intend.* A new residential home builder told me that his prices were 10% lower than large builders in the area. When I asked why, he said "I don't have the name recognition they do." Is pricing a viable approach to creating name awareness? It is if price is your differentiator as it is for Wal-Mart. If not, you're sending conflicting messages to the market. Let's see how that works. The builder mentioned above was convinced that his quality was better than the big boys. I asked him to imagine the following: his and two well-known competitors' ads appeared side by side their subdivisions were within a few miles of one another all three offered similar size homes, floor plans and amenities his prices are 10% lower I asked him, "If you were a buyer reading those ads, what impression would you get?" His response, "That we're skimping on quality." Indeed, he was creating name awareness - awareness that his quality was poor. Exactly the opposite of what he believed to be true! Intuition may tell you that low prices are a good way to gain name awareness. Counter-intuitive thinking reminds you that your pricing sends a message. Is it the message you intend? 0 comments	Dale Furtwengler is an internationally acclaimed author whose work is recommended by: University of Glasgow University of New South Wales Australian Institute of Management If you'd like to make your life easier while creating enviable results, subscribe to my special reports for step-by-step instructions on becoming invaluable. Back issues are available. March 2006 April 2006 May 2006 June 2006 July 2006 August 2006 September 2006 October 2006 November 2006 December 2006 January 2007 February 2007 March 2007 April 2007 May 2007 June 2007 July 2007 August 2007 September 2007 October 2007 November 2007 December 2007 January 2008 February 2008 March 2008 April 2008 May 2008 June 2008