Dale Furtwengler - The Invaluable Leader: March 2007

The Invaluable Leader by Dale Furtwengler

The High Cost of Denial
Monday, March 26, 2007

Lessons from the automotive industry

There is an early warning indicator.

Last Tuesday's Wall Street Journal article "New Detroit Woe: Makers of Parts Won't Cut Prices" included a table of ten parts suppliers to the automotive industry. Six of the ten were in Chapter 11.

This statistic plus the countless billions of dollars lost by the Big Three in recent years is evidence of a classic case of denial. Denial that's transcended more than three decades. What can we learn from this debacle?

We can learn to spot the early warning sign of denial. If you feel compelled to lower prices you're in denial. You're not facing the reality of what's driving the competitive advantage others have over you. In the words of Steven Levitt, the author of Freakonomics, you're asking "uninspired questions."

In the case of the automotive industry, the inspired questions they weren't asking are "How do we:

leapfrog foreign competitors' quality advantage?
streamline the design, prototype, product cycle process and its attendant costs?
identify other competitive advantages our foreign competitors have?
partner with the unions to regain a competitive advantage while helping their members maintain their lifestyles?"

It's counter-intuitive, but feeling compelled to lower prices is an indicator that you're in denial. That's when you need to ask "What competitive advantages do my competitors have? What will those advantages be in the future? How do I leapfrog my competitors to regain and maintain a competitive advantage of my own?"

As evidenced by the automotive industry, lowering prices isn't the answer.

My goal is to provide information that will help you manage your business more effectively. If you're facing an unusual challenge, please email them to me at dale@furtwengler.com and I'll deal with the topic in an upcoming blog.

I have the privilege of being able to present two full day seminars and a breakout session for the national conference of the American Society for Quality. For information on this conference visit http://www.asq-stl.org/2007_Spring_Conference/asq_stl_qc07_brochure.pdf

The Model I
Monday, March 19, 2007

Ford had its Model A and Model T.

Many leaders use the Model I to drive their businesses.

Recently, I spoke with a business owner who created a financial incentive to motivate his employees. To his dismay, his program wasn't nearly as successful as either of Ford's models. Why? What's lacking in the Model I? Employee focus!

This business owner (managers suffer the same malady) established his incentive program based on his motivators, not those of his employees. The result was that the incentive program became a disincentive. The employees became more comfortable in their jobs, not more motivated.

Here's an example from the construction industry. In November you can't find construction workers; they're in the woods deer hunting. There isn't enough money in the world to get them to forego one of the great joys in their lives, especially when the season is so limited. Money is not a motivator for them, time off is.

It's counter-intuitive, but you need to focus on your employees' motivators when creating incentives. Use the Model U instead of the Model I.

If you have topics you'd like me to address, please email them to me at dale@furtwengler.com.

I have the privilege of being able to present two full day seminars and a breakout session for the St. Louis conference of the American Society for Quality. For information on this conference visit http://www.asq-stl.org/2007_Spring_Conference/asq_stl_qc07_brochure.pdf

A Short Memory
Monday, March 12, 2007

Challenge or gift?

Actually, it's developed.

In sports, coaches often say that the secret to players' success depends on their having a short memory.

What are these coaches saying? They're telling us that the most successful players quickly forget the mistakes they make and, just as quickly, forget an exceptionally good showing. The best players are always focused on the only thing they can control - the next shot, the next play, the next pitch.

In business, it's equally important to stay focused on the present. If we focus on past mistakes, we diminish our confidence and our ability to move forward. We become equally immobile when we spend too much time reliving past success. Either way we make it possible for our competitors to accelerate past us as if they were in a formula race car.

Developing a short memory is counter-intuitive. It requires us to learn from the last experience, then quickly move onto the next step in our journey of success.

If there are topics you'd like to discuss, email me at dale@furtwengler.com.

Brilliance in Leadership
Monday, March 05, 2007

A much sought, often misunderstood aspect of leadership.

Are you using the right approach?

Last week an emerging leader told me that she felt she had to have a solution to a problem her team faced. When I asked "Why?" She said "I need to earn the right to lead by demonstrating that I can come up with solutions."

This all-too-common view of leadership is not only wrong; it's counterproductive. To understand what's wrong with this approach, let's look at the situation from the team members' perspectives. If your team leader identifies a problem then immediately offers a solution, what's your reaction likely to be? Are you going to challenge the boss's solution and offer a better alternative? Not likely, unless you have a death wish for your career.

Let's contrast that with the your reaction when the team leader identifies a problem and asks for your ideas on how to deal with the problem. How do you feel now? Do you feel valued and respected? Of course you do. You feel even better when your idea is chosen as a solution to the problem. Your confidence and self-esteem go up because you've contributed to the welfare of the team.

If the team doesn't come up with a solution and the team leader proffers one, how do you feel about the leader then? Does your respect for their abilities go up even more? Indeed, the leader's ability to come up with solutions when the rest of the team is struggling demonstrates the additional value the leader brings to the table.

It's counter-intuitive, but isn't a question of whether or not the leader has a solution; it's when the solution is offered that defines a leader's brilliance.

If you have topics you'd like me to address, please email me at dale@furtwengler.com

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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	The High Cost of Denial Monday, March 26, 2007 Lessons from the automotive industry *There is an early warning indicator.* Last Tuesday's Wall Street Journal article "New Detroit Woe: Makers of Parts Won't Cut Prices" included a table of ten parts suppliers to the automotive industry. Six of the ten were in Chapter 11. This statistic plus the countless billions of dollars lost by the Big Three in recent years is evidence of a classic case of denial. Denial that's transcended more than three decades. What can we learn from this debacle? We can learn to spot the early warning sign of denial. If you feel compelled to lower prices you're in denial. You're not facing the reality of what's driving the competitive advantage others have over you. In the words of Steven Levitt, the author of Freakonomics, you're asking "uninspired questions." In the case of the automotive industry, the inspired questions they weren't asking are "How do we: leapfrog foreign competitors' quality advantage? streamline the design, prototype, product cycle process and its attendant costs? identify other competitive advantages our foreign competitors have? partner with the unions to regain a competitive advantage while helping their members maintain their lifestyles?" It's counter-intuitive, but feeling compelled to lower prices is an indicator that you're in denial. That's when you need to ask "What competitive advantages do my competitors have? What will those advantages be in the future? How do I leapfrog my competitors to regain and maintain a competitive advantage of my own?" As evidenced by the automotive industry, lowering prices isn't the answer. *My goal is to provide information that will help you manage your business more effectively. If you're facing an unusual challenge, please email them to me at* *dale@furtwengler.com* *and I'll deal with the topic in an upcoming blog.* I have the privilege of being able to present two full day seminars and a breakout session for the national conference of the American Society for Quality. For information on this conference visit http://www.asq-stl.org/2007_Spring_Conference/asq_stl_qc07_brochure.pdf 0 comments The Model I Monday, March 19, 2007 Ford had its Model A and Model T. *Many leaders use the Model I to drive their businesses.* Recently, I spoke with a business owner who created a financial incentive to motivate his employees. To his dismay, his program wasn't nearly as successful as either of Ford's models. Why? What's lacking in the Model I? Employee focus! This business owner (managers suffer the same malady) established his incentive program based on his motivators, not those of his employees. The result was that the incentive program became a disincentive. The employees became more comfortable in their jobs, not more motivated. Here's an example from the construction industry. In November you can't find construction workers; they're in the woods deer hunting. There isn't enough money in the world to get them to forego one of the great joys in their lives, especially when the season is so limited. Money is not a motivator for them, time off is. It's counter-intuitive, but you need to focus on your employees' motivators when creating incentives. Use the Model U instead of the Model I. *If you have topics you'd like me to address, please email them to me at* *dale@furtwengler.com. I have the privilege of being able to present two full day seminars and a breakout session for the St. Louis conference of the American Society for Quality. For information on this conference visit http://www.asq-stl.org/2007_Spring_Conference/asq_stl_qc07_brochure.pdf 0 comments A Short Memory Monday, March 12, 2007 Challenge or gift?* *Actually, it's developed.* In sports, coaches often say that the secret to players' success depends on their having a short memory. What are these coaches saying? They're telling us that the most successful players quickly forget the mistakes they make and, just as quickly, forget an exceptionally good showing. The best players are always focused on the only thing they can control - the next shot, the next play, the next pitch. In business, it's equally important to stay focused on the present. If we focus on past mistakes, we diminish our confidence and our ability to move forward. We become equally immobile when we spend too much time reliving past success. Either way we make it possible for our competitors to accelerate past us as if they were in a formula race car. Developing a short memory is counter-intuitive. It requires us to learn from the last experience, then quickly move onto the next step in our journey of success. *If there are topics you'd like to discuss, email me at* *dale@furtwengler.com. 0 comments Brilliance in Leadership Monday, March 05, 2007 A much sought, often misunderstood aspect of leadership.* *Are you using the right approach?* Last week an emerging leader told me that she felt she had to have a solution to a problem her team faced. When I asked "Why?" She said "I need to earn the right to lead by demonstrating that I can come up with solutions." This all-too-common view of leadership is not only wrong; it's counterproductive. To understand what's wrong with this approach, let's look at the situation from the team members' perspectives. If your team leader identifies a problem then immediately offers a solution, what's your reaction likely to be? Are you going to challenge the boss's solution and offer a better alternative? Not likely, unless you have a death wish for your career. Let's contrast that with the your reaction when the team leader identifies a problem and asks for your ideas on how to deal with the problem. How do you feel now? Do you feel valued and respected? Of course you do. You feel even better when your idea is chosen as a solution to the problem. Your confidence and self-esteem go up because you've contributed to the welfare of the team. If the team doesn't come up with a solution and the team leader proffers one, how do you feel about the leader then? Does your respect for their abilities go up even more? Indeed, the leader's ability to come up with solutions when the rest of the team is struggling demonstrates the additional value the leader brings to the table. It's counter-intuitive, but isn't a question of whether or not the leader has a solution; it's when the solution is offered that defines a leader's brilliance. *If you have topics you'd like me to address, please email me at* *dale@furtwengler.com* 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