Leadership Development - Effectively Influencing Decision Makers - Marshall Goldsmith

'The great majority of people tend to focus downward. They are occupied with efforts rather than results. They worry over what the organization and their superiors 'owe' them and should do for them.'

"The great majority of people tend to focus downward. They are occupied with efforts rather than results. They worry over what the organization and their superiors 'owe' them and should do for them. And they are conscious above all of the authority they 'should have.' As a result they render themselves ineffectual."—Peter Drucker

One of my first BusinessWeek.com blogs was called "The Art of Influencing Up." In the last couple of years, I have received countless questions from leaders who not only need to influence up but also influence across in their organizations. In this post, I would like to share a more comprehensive version of my ideas on how to make a positive difference when you do not have direct line authority.

Please be warned in advance, this post is longer than my regular ones.

Peter Drucker has written extensively about the impact of the knowledge worker in modern organizations. Knowledge workers can be defined as people who know more about what they are doing than their managers do. Many knowledge workers have years of education and experience in training for their positions yet have almost no training in how to effectively influence decision-makers. As Peter has noted, "The greatest wisdom not applied to action and behavior is meaningless data."

The 11 guidelines listed below are intended to help you do a better job of influencing decision-makers. In some cases, these decision-makers may be immediate or upper managers—in other cases they may be peers or cross-organizational colleagues. I hope you find these suggestions to be useful in helping you convert your good ideas into meaningful action.

1. Every decision that affects our lives will be made by the person who has the power to make that decision, not the "right" person or the "smartest" person or the "best" person. Make peace with this fact.

As simple and obvious as this statement may seem, I am amazed at how few (otherwise intelligent) people ever deeply get this point. When your child comes home from school and complains, "It’s not fair! The teacher gave me a 'C' and I really deserved an 'A.' "" we, as parents, should say, "Welcome to the real world, kid. In life you have to accept the fact that decision-makers make decisions—and that you are not always the decision-maker." Once we make peace with the fact that the people who have the power to make the decisions always make the decisions and we get over whining that "life isn't fair," we become more effective in influencing others and making a positive difference. We also become happier.

2. When presenting ideas to decision-makers, realize that it is your responsibility to sell, not their responsibility to buy.

In many ways, influencing ultimate decision-makers is similar to selling products or services to external customers. They don't have to buy—you have to sell. Any good salesperson takes responsibility for achieving results. No one is impressed with salespeople who blame their customers for not buying their products.

While the importance of taking responsibility may seem obvious in external sales, an amazing number of people in large corporations spend countless hours blaming management for not buying their ideas. Former Harvard Professor Chris Argyris pointed out how "upward feedback" often turns into "upward buck-passing." We can become disempowered when we focus on what others have done to make things wrong and not on what we can do to make things right.

If we spent more time on developing our ability to present ideas and less time blaming others for not buying them, a lot more might get accomplished.

A key part of the influence process involves the education of decision-makers. To again quote Drucker: "The person of knowledge has always been expected to take responsibility for being understood. It is barbarian arrogance to assume that the layman can or should make the effort to understand the specialist." The effective influencer needs to be a good teacher. Good teachers realize that communicating knowledge is often a greater challenge than possessing knowledge.

3. Focus on contribution to the larger good—not just the achievement of your objectives.

An effective salesperson would never say to a customer, "You need to buy this product, because if you don't, I won't achieve my objectives." Effective salespeople relate to the needs of the buyers, not to their own needs. In the same way, effective influencers relate to the larger needs of the organization, not just to the needs of their unit or team.

When influencing decision-makers, focus on the impact of your suggestion on the overall corporation. In most cases the needs of the unit and the needs of the corporation are directly connected. In some cases they are not. Don't assume that executives can automatically make the connection between the benefit to your unit and the benefit to the larger corporation.

4. Strive to win the big battles. Don't waste your energy and psychological capital on trivial points.

Executives' time is very limited. Do a thorough analysis of ideas before challenging the system. Don't waste time on issues that will only have a negligible impact on results. Focus on issues that will make a real difference. Be willing to lose on small points.

Be especially sensitive to the need to win trivial non-business arguments on things like restaurants, sports teams, or cars. People become more annoyed with us for having to be right about trivia than our need to be right on important business points. You are paid to do what makes a difference and to win on important issues. You are not paid to win arguments on the relative quality of athletic teams.

5. Present a realistic "cost-benefit" analysis of your ideas—don't just sell benefits.

Every organization has limited resources, time, and energy. The acceptance of your idea may well mean the rejection of another idea that someone else believes is wonderful. Be prepared to have a realistic discussion of the costs of your idea. Acknowledge the fact that something else may have to be sacrificed in order to have your idea implemented.

By getting ready for a realistic discussion of costs, you can prepare for objections to your idea before they occur. You can acknowledge the sacrifice that someone else may have to make and point out how the benefits of your plan may outweigh the costs.

6. "Challenge up" on issues involving ethics or integrity—never remain silent on ethics violations.

The downfall of Enron, WorldCom, and other organizations have dramatically demonstrated how ethics violations can destroy even the most valuable companies. The best of corporations can be severely damaged by only one violation of corporate integrity. I hope you will never be asked to do anything by the management of your corporation that represents a violation of corporate ethics. If you are, refuse to do it and immediately let upper management know of your concerns. You need to take this action for the ultimate benefit of your company, your customers, your co-workers, and yourself.

When challenging up, try not to assume that management has intentionally requested you to do something wrong. In some cases, inappropriate requests may be made because of misunderstandings or poor communication. Try to present your case in a manner that is intended to be helpful, not judgmental.

7. Realize that powerful people are just as human as you are. Don't say, "I am amazed that someone at this level…"

It is realistic to expect decision-makers to be competent; it is unrealistic to expect them to be anything other than normal humans. Is there anything in the history of the human species that indicates when people achieve high levels of status, power, and money, they become completely 100% wise and logical? How many times have we thought, "I would assume someone at this level…" followed by "should know what is happening," "should be more logical,&qu "wouldn't make that kind of mistake," or "would never engage in such inappropriate behavior."

Even the best of leaders are human. We all make mistakes. When your managers make mistakes, focus more on helping them than judging them.

8. Treat decision-makers with the same courtesy that you would treat customers—don't be disrespectful.

While it is important to avoid kissing up to decision-makers, it is just as important to avoid the opposite reaction. A surprising number of middle managers spend hours trashing the company and its executives or making destructive comments about other co-workers.

Before speaking, it is generally good to ask four questions:

• Will this comment help our company?

• Will this comment help our customers?

• Will this comment help the person I am talking to?

• Will this comment help the person I am talking about?

If the answers are no, no, no, and no, don't say it! There is a big difference between total honesty and dysfunctional disclosure. As we discussed earlier, it is always important to "challenge up" on integrity issues. It is inappropriate to stab decision-makers in the back.

9. Support the final decision of the organization. Don't tell direct reports, "They made me tell you."

Assuming that the final decision of the organization is not immoral, illegal, or unethical, go out and try to make it work. Managers who consistently say, "They told me to tell you" to co-workers are seen as messengers, not leaders. Even worse, don't say, "Those fools told me to tell you…" By demonstrating our lack of commitment to the final decision, we may sabotage the chances for effective execution.

A simple guideline for communicating difficult decisions is to ask, "How would I want someone to communicate my final decision when that person disagreed with me?" Treat decision-makers the same way that you would want to be treated if the roles were reversed. If you stab your boss in the back in front of your direct reports, what are you teaching them to do when they disagree with you?

10. Make a positive difference—don't just try to "win" or "be right."

We can easily become more focused on what others are doing wrong than on how we can make things better. An important guideline in influencing up is to always remember your goal: making a positive difference for the organizations.

Corporations are different from academic institutions. In an academic institution, the goal may be just sharing diverse ideas, without a need to affect the bottom line. Hours of acrimonious debate can be perfectly acceptable. In a corporation, sharing ideas without having an impact is worse than useless. It is a waste of the stockholders' money and a distraction from serving customers.

When I was interviewed at the Harvard Business Review, I was asked, "What is the most common 'area for improvement' for the executives that you meet?" My answer was "winning too much." Focus on making a difference. The more other people can be "right" or "win" with your idea, the more likely your idea is to be successfully executed.

11. Focus on the future—let go of the past.

One of the most important behaviors to avoid is whining about the past. Have you ever managed someone who incessantly whined about how bad things are? When people consistently whine, they inhibit any change they may have for bettering the future. Their managers tend to view them as annoying. Their direct reports view them as inept. Nobody wins.

Successful people love getting ideas aimed at helping them achieve their goals for the future. By focusing on the future, you can concentrate on what can be achieved tomorrow, not what was not achieved yesterday. This future orientation may dramatically increase your odds of effectively influencing decision-makers. It will also help you build better long-term relationships with people at all levels of your organization.

In summary, think of the years that you have spent "perfecting your craft." Think of all of the knowledge that you have accumulated. Think about how your knowledge can potentially benefit your organization. How much energy have you invested in acquiring all of this knowledge? How much energy have you invested in learning to present this knowledge to decision-makers so that you can make a real difference? My hope is that by making a small investment in learning to influence decision-makers, you can make a large, positive difference for the future of your organization.

via marshallgoldsmithlibrary.com

What if you maximized your effectiveness? What if you increased employee and customer engagement? How would you rate your competitive advantage?

For over 25 years, Jim Woods has worked with hundreds of people all over the world, helping them discover their ultimate effectiveness through breakthrough educational and coaching programs. Jim is an expert on leadership, competitive strategy, and organizational issues. He is president of InnoThink Group and Center for Creative Leadership and Competitive Strategy.

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Competitive Advantage Learn How Richard Branson Works Magic

Richard Branson, the 48-year- old chairman of the London-based Virgin Group, has parlayed a lifelong disdain for conventional business wisdom into a $3.5 billion international conglomerate and one of the world's most powerful and recognizable brands. Under the ubiquitous Virgin banner, Mr. Branson has ventured into a panoply of businesses - from condoms to wedding gowns, from airlines to financial services - and in the process has taken on entrenched giants and wrested market share from them.

All the while, the flamboyant and irreverent Mr. Branson has tweaked the business establishment, particularly in Britain, and displayed a P.T. Barnum-like command of publicity and showmanship to gain priceless cachet for the Virgin brand. He has been, for much of the past 30 years, one of the most admired Britons, and his fame has spread in recent years around the globe as Virgin has expanded its reach and its luster.

Mr. Branson loves nothing more than a daunting challenge; he views the impossible as just another business opportunity. Who else but Mr. Branson would put the vibrant Virgin label on the decaying British Rail with hopes of turning the dilapidated railroad into a sleek, profitable business? And throughout his career, he has cleverly embraced the David role, taking on Goliaths like British Airways, EMI Music and Coca-Cola, with the intent of becoming the best rather than the biggest and working under the assumption that there are significant profits to be made in small pieces of big markets.

His trademark is outlandish publicity stunts. He will do almost anything to promote the Virgin brand: driving a tank down Fifth Avenue in New York to introduce Virgin Cola to the United States, risking his life in high-profile hot-air balloon adventures or portraying a drowning victim on television's "Baywatch."

 

Indeed, so crucial is the continued high profile of Virgin that Mr. Branson says his highest paid and most important employee is Will Whitehorn, his public relations and communications director. "I suspect in most companies, the public relations person is down at No. 20 in the pecking order," Mr. Branson says. "But, here, he is fighting incredibly important battles. If a negative story starts running away with itself in the press and is not dealt with fast, it can badly damage the brand. And so we put enormous weight on our public relations people."

Mr. Branson reportedly sets aside at least 25 percent of his time for public relations activities, and Mr. Whitehorn has a staff member whose sole responsibility is devising the headline-catching publicity stunts for which Mr. Branson has become known. "If your staff works enormously hard to create something they are proud of, it's foolish if you don't let the world know about it," Mr. Branson states. "Using yourself to get out and talk about it is a lot cheaper and more effective than a lot of advertising. In fact, if you do it correctly, it can beat advertising hands down and save tens of millions of dollars."

But Mr. Branson stands for more than balloon trips and powerboat races across the Atlantic. Behind the brash and insouciant huckster, there lies a sharp business visionary who has created a formula for success that is rife with lessons for chief executives in any country and any business. The Branson magic is not about smoke and mirrors, but rather is a kind of chicken soup for the moribund, tradition-bound corporate soul. Mr. Branson's success reflects an uncanny ability to take the consumer's point of view as his own and Þnd ways to embrace that view for profit.

Despite his personal riches, Mr. Branson has retained an "everyman" persona marked by his casual dress, affable and modest manner, and devilish disrespect for convention. He understands viscerally the concerns and needs of his customers and his employees and acts as a conduit for fulfilling those needs. He has built the Virgin brand in his own image, and the result is an extremely positive emotional bond between consumers and companies that bear the Virgin label. It is brand-builder's nirvana, made all the more impressive because the brand is all that ties together more than a hundred disparate Virgin businesses. There is little synergy or shared resources among the Virgin companies; Virgin, in fact, resembles the classic Japanese keiretsu such as a Yamaha or Mitsubishi.

Branding An Ethos
With Virgin, Mr. Branson has displayed remarkable staying power that is made possible only by adhering to his own carefully honed set of business values. From the winter of 1969, when as a 19-year-old wunderkind he founded his first venture - a mail- order record business, which evolved into a recording studio dubbed Virgin Records - Mr. Branson established a clear business ethos that had its genesis in the anti-establishment counterculture of the 1960's and remained steadfast even as the company grew and Mr. Branson himself evolved from the "hippie capitalist" into a widely admired billionaire.

 

Writing in a British management journal, Alan Mitchell noted that Mr. Branson found his winning formula in the clashing values of the 60's: profit versus people; money versus morality; the corporation versus the consumer; big (business) versus small (human); formal versus informal; planning versus spontaneity; conventionality versus novelty; hierarchy versus egalitarianism; secrecy versus openness. Mr. Branson always chose the humanistic path, and "yet uniquely, he's turned these values back on business itself, forging an unexpectedly vibrant synthesis," Mr. Mitchell wrote.

The vibrant synthesis is based on a set of five criteria that Mr. Branson has incorporated into every business he has started and every joint venture he has entered. A product or service cannot hope to bear the Virgin label unless it meets these conditions:

• It must have high quality.
• It must be innovative.
• It must provide good value for the money.
• It must be challenging to existing alternatives.
• It must have a sense of fun.

With these core values as the common thread, Mr. Branson has entered one business after another in which he perceived a customer set that was being underserved by a fat and complacent dominant player. Whereas most would avoid such elephantine competition as British Airways or Britain's entire financial services industry, Mr. Branson sees a "bigger, softer underbelly" that is vulnerable to attack. He calls it the "Big Bad Wolf" theory. "We look for the big bad wolves who are dramatically overcharging and underdelivering," he explains.

When he was approached in the early 1980's with the idea of starting an airline, for example, Mr. Branson was intrigued. He had long been frustrated by the poor service and inattention to customer needs of monopolistic airlines like British Airways. Though he had become a millionaire in the music industry with Virgin Records and though his business partners were aghast at the idea that he would risk the profitable company on a business he knew nothing about, Mr. Branson saw opportunity. "Tell Richard that something is impossible and watch his eyes light up," says David Tait, head of Virgin Atlantic's North American operations.

In Virgin Atlantic, Mr. Branson designed an airline to please himself, figuring he embodied the typical air traveler. Starting with a single 747-200 in 1984, Virgin Atlantic began flying the popular London-to-New York route with two things in mind: lower prices and better service. While a passenger is stuck in a metal tube for seven hours, why not serve better meals; offer more entertainment; have smiling, enthusiastic flight crews, and create fun? Eschewing first class, Virgin Atlantic would offer a first-class experience at business-class prices.

In the past 14 years, the airline has shaken up the industry with innovative ground and on-board service and entertainment. Virgin Atlantic offers spa-like lounges in its hub airports replete with showers, putting greens, haircuts, massages and manicures. In the air, more massages, manicures and full sleeping outfits are available for its business-class passengers. It was the first airline to offer more than two choices of meals, even in economy, and it was also the first to put seat-back videos in every seat on every plane.

Mr. Branson, who favors the airline perhaps more than any other part of his empire, flies frequently and usually spends the entire flight chatting with passengers, serving drinks, leading games over the public address system and helping the flight crew with even the most menial tasks. In the early days, when there were far fewer than the current 22 aircraft in Virgin's fleet, Mr. Branson regularly appeared at Heathrow Airport to apologize personally to disembarking passengers if a flight was late. Though he cannot physically be on every flight, Mr. Branson's presence is felt through the enthusiasm evident in his employees, most of whom seem to be simply having a better time at their jobs than their counterparts on other airlines.

 

And all Mr. Branson has done is insist on treating his customers as he himself wished to be treated. This was nothing short of revolutionary in the airline industry. In short order, Virgin Atlantic has become an industry favorite, winning countless travel awards and becoming the second largest long-haul carrier on the London-to-New York route. Growth has been measured, steady and slow as Virgin Atlantic has expanded into eight United States cities as well as Asia and South Africa. Mr. Branson now has his sights set on building a domestic United States carrier if he can tear down the barriers blocking foreign-owned airlines from offering routes within the United States.

THE MEASURE OF SUCCESS

Like other great entrepreneurs, Mr. Branson is unafraid of failure. But unlike many other successful business leaders, he refuses to stay within the confines of a single core business. Rather than "sticking with what you know," Mr. Branson's credo is "if you know one business, you know any business." He adds: "If you can run a record company, you can run an airline. If you can run an airline, you can run a bank. If you can run a bank, you can run a soft drink company." And on and on.

He acknowledges that his philosophy is centered on finding the best people to run these businesses, but he insists that he is not so much concerned about industry-specific expertise as strong people skills that mesh with the Virgin culture. "What makes somebody good is how good they are at dealing with people," Mr. Branson states. "If you can find people who are good at motivating others and getting the best out of people, they are the ones you want. There are plenty of so-called experts, but not as many great motivators of people."

Virgin tends to promote from within, and the winning profile, not surprisingly, is Branson-like: someone who gets charged up when told that something cannot be done; someone who is undaunted by industry barriers and will not take no for an answer.

And Mr. Branson tends to focus far less on profits and far more on industry impact. Because Virgin is privately held, Mr. Branson declines to talk about specific numbers. He says, "It's important to pay the bills." But once Virgin reached solid financial ground in the early 1990's -- mainly from the $1 billion sale of the Virgin Records label to Thorn-EMI -- and survival was no longer an issue, Mr. Branson's attentions were focused on higher ground.

He says his measure of success is creating a business whose practices are completely different from the way others do things, whose staff can be proud and whose product or service makes a positive impact on consumers. "There's no point in going into a business unless you shake up the whole industry," Mr. Branson says. "Then, you are not just making a difference for yourself. You find the whole industry has to react to your being there and change the way it does business."

Tired of giving 5 percent of his money on the day he signed up with a financial services company, for example, Mr. Branson started Virgin Direct, which eliminated the fine print and the hidden fees and quickly started winning customers from competitors. In just two years, Virgin Direct, a firm somewhat like Fidelity or Vanguard in the United States, has brought in more than 400,000 customers and has $3.5 billion under management. Every other financial services company in Britain has had to reduce its rates to compete, which is just the kind of reaction Mr. Branson relishes. He says he has his sights set next on the British telecommunications industry.

A STAR IS BORN

Ever the radical, Mr. Branson says his only business role model was a person who had failed. Fellow iconoclast and entrepreneur Freddie Laker had attempted to take on British Airways with a low-cost trans-Atlantic airline a few years earlier and had been driven out of business by the competition. Nevertheless, Mr. Branson, sensing a kindred spirit, sought Mr. Laker's counsel in the early 80's. The airline, Mr. Laker advised him, had to concentrate not just on low cost but also on offering quality and value for the money. It had to be innovative and, most of all, fun. The airline's employees, therefore, were the real asset, not the planes.

And it was Mr. Laker who brought out the Barnum in Mr. Branson. "Freddie Laker sat me down and said, 'If you are going to take on Pan Am, T.W.A. and British Airways, you've got to use yourself and get out there and realize that if you dress up in a captain's outfit when you launch the airline, you'll get on the front page. If you turn up in ordinary business clothes, you'll be lucky to get a mention. Remember, the photographers have a job to do; they'll turn up to one of your events and give you one chance. If you don't give them a photograph that will get them on the front page, they won't turn up to your next event.'"

Despite his public persona, Mr. Branson claims to be shy and introverted. He says he had to force himself to make speeches, embrace the photo opportunities and take part in the public relations soirees. But, he tells other chief executives, it can be done. "Before we launched the airline, I was a shy and retiring individual who couldn't make speeches and get out there," he says. "I had to train myself into becoming more of an extrovert."

And the metamorphosis has paid off. His outrageous stunts and accessibility to the media have provided huge competitive advantage in the brand wars. For example, his media stunts in introducing Virgin Atlantic's new "drive-through" airport check-in, and later Virgin Cola, spawned widespread newspaper coverage and led to five-minute segments on NBC's "Today" show and a national audience of millions of Americans -- at no cost to Virgin. He won a highly publicized libel settlement of nearly $1 million from British Airways in the early 1990's and milked the David-slaying-Goliath angle for all it was worth.

Mr. Branson is quite pleased that most business leaders remain below the parapets. "From a competitive point of view, the longer they continue to think that way, the better for us," he states. He relates a conversation with a BBC producer who told him that 99 out of 100 invitations to British chief executives to appear on television are refused. Conversely, Virgin is always available for air time. "With a television spot, you are reaching 10 million people," Mr. Branson says. "It would be bloody stupid to say no."

EMPLOYEES FIRST

A genius for publicity, however, is only one facet of Mr. Branson's business talent. Perhaps more crucial to his success is his order of priorities. While most chief executives focus on creating shareholder value and devote their attention primarily to customers, Mr. Branson believes that the correct pecking order is employees first, customers next and then shareholders. His logic is simple and sound: If your employees are happy, they will do a better job. If they do a better job, the customers will be happy, and thus business will be good and the shareholders will be rewarded.

To this end, Mr. Branson goes to unusual lengths. He regularly takes out entire flight crews for dinner and parties when he arrives on a Virgin Atlantic flight. He even stays at the crew's hotel rather than in expensive digs downtown. He gives every Virgin employee a Virgin card, which provides big discounts on the airline as well as at Virgin Megastores and other Virgin businesses.

 

Are your competitors talking about you in their boardrooms? Does your strategy guide how you allocate resources? We see strategy as much more than a plan. See how.

 

Because of Virgin's many disparate businesses, Mr. Branson likens his role to that of a commander of many armies fighting battles around the world. "In a sense, you are ultimately directing the war, and the critical thing is constantly being in touch and motivating your troops and helping people if they've got a problem," he says.

So he is continually on the road, visiting Virgin businesses, talking with employees and customers. Mr. Branson is known for his ever-present notebook and pen, which he pulls out whenever he chats with employees or customers. He insists that this is a crucial element in his role as chairman and that by writing things down, he creates a regular list of items for immediate action. Most chief executives, he notes, will chat with employees in the course of their travels but by the next day will remember little of what they were told.

Mr. Branson reads mail from employees every morning before he does anything else. This habit, which he started in Virgin's early days, changes the company-employee dynamics dramatically. Employees do not hesitate to air their grievances directly to Mr. Branson, and he has proved with his actions that he not only listens but also responds. He says that although Virgin has 20,000 employees around the world today, he gets only 25 to 30 letters each morning. "It's not as many as you think because they know they can do it," he explains.

The letters run the gamut, from small ideas to frustrations with middle management. Mr. Branson addresses every one either by answering personally or by initiating some action. "Instead of needing a union when they have a problem, they come to me," he says. "I will give the employee the benefit of the doubt on most occasions." His loyalty to the rank-and-file employees is returned in kind. Working for Virgin, especially in Britain, is nothing short of a badge of honor.

While being interviewed for this article, for example, Mr. Branson was vacationing on his private Caribbean island, called Necker. Along with him for his sojourn, he had brought 20 employees from various Virgin companies. And these were not senior executives, but the rank and file -- a housekeeper from Johannesburg, a switchboard operator, a reservations clerk, a pilot -- who were invited because of excellent performance. This is a regular perk for Virgin employees, and Mr. Branson, rather than feeling intruded upon, delights in the company.

"The idea is to have fun, but by talking to employees, you learn a lot as well," he says. Reminded that it is the rare chief executive who takes employees along on vacation, Mr. Branson laughs and says, "I can assure you, it's no sacrifice." But it sends a powerful message and creates enviable loyalty in his growing work force. In fact, Virgin employees are as likely to say they "work for Richard" as for Virgin.

Mr. Branson also hosts an annual summer party for all Virgin employees at his country home outside London. This year the party lasted seven days, and more than 25,000 employees and family members attended. Nearly all were greeted at the door by Mr. Branson, who is likely to be the first in the swimming pool. He also attends as many orientations for new staff as possible in order to set the tone and send the message. "I say: 'Get out there and have a good time. Really enjoy yourself, because most of your life is spent working, and you ought to have a great time doing it.' It's much nicer paying the bills when everybody is having a good time."

And all the while, Mr. Branson is Virgin's most enthusiastic cheerleader, offering constant praise to employees for their efforts. He recalls how his mother and father always looked for the best in their children, and he does that now with his own son and daughter. "I will praise, praise, praise," he says, "and only criticize if they are going to kill themselves crossing the road. People know when they've done things wrong; they don't need to be told. When I write my letters to employees, you'll never see a line of criticism."

STAYING THE COURSE

But if Mr. Branson is part father figure, part psychologist and part camp counselor, he is also an astute and demanding businessman. He can be ruthless, manipulative and controlling, according to various press reports about him. He insists, for example, that Virgin have no less than 50 percent stake in any company bearing the Virgin label and that his managers retain control of the operations.

He has also orchestrated shrewd business deals that helped finance Virgin's growth without using the company's money. Mr. Branson says such deals are possible only because of the strength of the Virgin brand. For example, the recent creation in Britain of the Virgin bank, which is an operation separate from Virgin Direct, was financed to the tune of $500 million by other investors, and Virgin retained a 50 percent stake without coughing up a penny. "We're launching new companies that are 100 percent funded by external investors based on the power of the brand," he says.

It would seem that the very power of the brand would be kept under tight control, lest it become diluted. Yet, being an inveterate risk taker and thrill seeker, Mr. Branson needs big challenges to keep him interested. Taking on Coke and Pepsi was one way to do that.

Virgin Cola, according to Mr. Branson, is ready to overtake Pepsi in Britain, and he insists the soft drink will outsell Pepsi outside North America in his lifetime. About Coca-Cola, he is more restrained. He does not expect to topple Coca-Cola, arguably the world's best brand, anytime soon. But this does not bother Mr. Branson in the least. He says that Virgin Cola will grab a market share of 1 percent or 2 percent in the United States and that this will be "enough to pay the bills and get a base to start building on." The real challenge, he adds, "is taking on the biggest brand in the world and seeing what we can do with it."

Acknowledging the gamble on cola, Mr. Branson suggests that he is taking an even bigger risk in putting the Virgin name on the British Rail, Britain's most run-down and neglected network. With no money invested in its infrastructure in the past 30 years, the public train system was simply grinding to a halt when Virgin decided to run it privately. The company is investing $2 billion on new high-speed trains and a renovation of all the tracks. But it will be four years before the restoration is complete, and so the Virgin label must endure being associated with an inferior product for a long stretch.

The company, Mr. Branson says, could not pretend that Virgin had not taken over ownership. Efforts to improve existing conditions have already paid dividends in the first 12 months, with on-time performance improving from 78 percent to 90 percent and 16 percent more people using the trains, resulting in a £25 million profit, compared with a loss of £20 million the year before.

Nevertheless, Mr. Branson admits that "this is the biggest risk we've taken with the brand in Britain." Disgruntled passengers who never bothered to complain when the British Rail name was on the trains feel justified in airing their frustrations now that Virgin graces the engines. Though Virgin has failed at other business investments and escaped with its reputation intact, sustained problems with the railroad could tarnish the brand.

But Mr. Branson, ever the optimist, foresees a positive outcome. "You can't be afraid to take risks," he says. "I believe that if my balloon goes down in 10 years' time, the success we've made with Virgin trains will be a greater part of my legacy than Virgin Atlantic. There may be short-term damage, but in the long run, it was the right thing to do."

Though the Virgin brand is so inextricably tied to his name, Mr. Branson insists that the brand will live on even if one of his risky adventures does him in prematurely. "It will be a different kind of brand, probably more mature than it's been before and slightly less risque," he says. "But there is no reason commercially that it shouldn't go on in strength."

The more crucial lesson, he says, is retaining the values he has instilled even as the company grows larger and larger. "You've got to treat people as human beings -- even more so as the company gets bigger," Mr. Branson says. "The moment I start to think 'I've made lots of money, I'm comfortable, I don't need to bother with these things anymore,' that's when Virgin will be at real risk."

BRANSONISMS
Richard Branson did not become a favorite of the business media solely on the basis of his publicity stunts; he is also eminently quotable in sound bites. Here are some gems from our interview with him:

"Obviously, the David image has done Virgin no harm. And if we ever became a Goliath, I think another David would set up and take us on."

"You never enter a new business unless it will enhance the brand."

"You fail if you don't try. If you try and you fail, yes, you'll have a few articles saying you've failed at something. But if you look at the history of American entrepreneurs, one thing I do know about them: An awful lot of them have tried things and failed in the past and gone on to great things."

"We look for the big bad wolves who are dramatically overcharging and underdelivering."

"There are quite a few things I've done that even I thought might have been one step too far. But if you are willing to make a fool of yourself and make people smile -- as long as you do it with a sense of fun -- you can get away with it.""We look for the big bad wolves who are dramatically overcharging and underdelivering."

"We're launching new companies, 100 percent funded by external investors, based on the power of the brand."

"I'm absolutely certain that in my lifetime we will overtake Pepsi in the world outside America."

"If something happens to me, bizarrely, it might be the best thing that happens to the brand in that when a rock star gets killed, the sales of his albums triple. As long as I go quick, with my reputation still intact, then I think the brand can go on living well indefinitely."

"If you grow a company from scratch, you can get the right people from day one; you can get the products right from day one, get the pricing right. It's much easier."

"In a sense, you are ultimately directing the war and the critical thing is to be constantly in touch and constantly motivating your troops and to see how you can help people if they've got a problem."

"I'm not 100 percent sure that children should go on and run their parents' business, because they are not necessarily the right people to do it."

"If you can find people who are good at motivating others and getting the best out of people, they are the ones you want."

Reprint No. 98406

Authors Glenn Rifkin, glennrifkin@worldnet.att.net Glenn Rifkin has covered technology for the New York Times and has written for the Harvard Business Review and Fast Company. He is coauthor of Radical Marketing (HarperBusiness, 1999) and The CEO Chronicles (Knowledge Exchange, 1999).

via strategy-business.com

 

When Do You “Tell the Truth” During Coaching? Personal & Professional Coaching - Carter McNamara

A hallmark of coaching, whether coaching oneself or others, is to ask generative questions — questions to help clarify a current priority, to address the priority and learn at the same time.

However, are there times when a coach should “tell the truth” — to assert the coach’s perspective without the use of questions?

In his seminal book “The Road Less Traveled,” M. Scott Peck writes:

• “… the act of withholding the truth is always potentially a lie,” … (p. 62)
• “… the decision to withhold the truth must always be based entirely upon the needs of the person or people from whom the truth is being withheld.” (p. 62)
• “.. the primary factor in the assessment of another’s needs is the assessment of that person’s capacity to utilize the truth for his or her own spiritual growth.” (p. 63)

He adds (p. 151)

• “But the reality of life is such that at times one person does know better than the other what is good for the other, and in actuality is in a position of superior knowledge or wisdom in regard to the matter at hand.” (p. 151)

He adds (p. 153)

• “To fail to confront when confrontation is required for the nurture of spiritual growth represents a failure to love equally as much as does thoughtless criticism or condemnation and other forms of active deprivation of caring.”

In my coaching, I will “tell the truth” if I perceive any of the following — if the client:

• Speaks of hurting her/himself
• Speaks of hurting others
• Does not make progress on his/her priority over numerous coaching sessions
• Continues to show very strong emotions over numerous sessions

My “truth” might be the strong suggestion that he/she get a professional evaluation from a trained therapist.

What do you think? via managementhelp.org

 

Rethink Your Business Approach. Driving Top Line Growth through Effective Innovation 

Strategies defining business in the 20^th Century no longer work in meeting today’s challenges. Companies are reinventing how they respond to consumers, employees and suppliers. At InnoThink Group we help companies find new methods of increasing top line growth and achieving competitive advantage.  

With InnoThink Group as your innovation partner, your company will create and implement growth strategies that work. 

Innothink Group is a strategic management and innovation consultancy. 

Our Guarantee. Where many consulting firms are reluctant to bear risks or tie their rewards to project outcomes, we decided to build a better model. We align our success with yours. We’re outcome obsessed, outcome paid, putting nearly two thirds of our fees at risk subject to hitting predetermined milestones. More than a guarantee we wanted from the outset to create true partnerships with shared responsibility. See a few of our clients.  

We will enable you to: 

1. Effectively create an Innovation culture that drives top line growth
2. Total customer responsiveness
3. Develop creative leadership
4. Create uniqueness
5. Turn manufacturing into marketing weapons
6. Pursue fast paced innovations
7. Set qualitative innovation goals
8. Develop an inspiring vision
9. Create a sense of urgency
10. Demand total integrity
11. Exceed shareholder expectations
12. Increase top line growth

 For speaking, coaching or consulting inquiries complete the  contact form >>> or call719-649-4118.

 

Also: 

• Define an Innovation and Growth Strategy
• Build Innovation Capabilities 
• Learn to avoid commoditization
• Generate Customer Insights
• Blueprint Business Model
• Prototype and Model

Email: CEO Jim Woods

Call: +1 719- 649-4118

 

 

 

Solving Family Business Conflicts Before They're Out of Control: Alan E. Fishman

The strong personalities and wills that make family businesses successful are also the roots of family conflicts.  Too many of these conflicts have been allowed to grow out of control and have wound up in litigation, causing major rifts in families as well as in the businesses. They usually cause major strain on family relationships through one party buying out another or by family members continuing to work with each other in an atmosphere of tension. 

Often I have heard comments such as, "My sister wants to keep our company small and is fighting a controlled growth," or "Dad won't let go of the control," or "My brother and I are paid the same and he doesn't carry his weight."

Family members usually have different levels of involvement and will rarely agree on what those levels are, or how to set fair compensation for different levels of involvement.  Are the perks reasonable?  What about the children of the non-active family member?  Should the business be required to give them good jobs as well?  Can it afford to?  These conflicts get much worse if a divorce takes place.

One way to avoid lawsuits is to agree to binding arbitration.  This means that you let a third party decide who is right after the party hears arguments and sees evidence from both sides. 

Another alternative dispute resolution approach is the so-called "rent-a-judge" method.  Family members hire a judge who gives a binding or, depending upon the wishes of the parties, a non-binding opinion.

Some family disputes are being solved by using a confidential-non-binding process in which the attorneys representing the family members give condensed arguments to an expert advisor.  This process, called a mini-trial, lets family members look at the strengths and weaknesses of both sides and facilitates a settlement through the exchange of information.

Of course, the best solution is always to try to avoid disputes of this scale altogether, by structuring the ownership and responsibilities in a family business to suit the abilities and personalities of the family members involved.  The sad reality is that these disputes are inevitable.  When they do occur, the key is to acknowledge and address them right away, usually through an objective third party.  The sooner you can act on a problem in your family-run business, the better your chances of avoiding the knockdown drag-out family feuds that cause the downfall of many businesses and the disruption of many families in business. 

Allen E. Fishman founded The Alternative Board® (TAB), the world’s largest franchise system providing advisory board and executive coaching services to business owners, Presidents and CEOs. TAB’s worldwide business advisory network operates in over 1,000 cities in the United States, Canada, the UK, and Venezuela.

Fishman is also the author of several books in which he shares his business insights to help business owners, including two best-sellers: 7 Secrets of Great Entrepreneurial Master: The GEM Power Formula for Lifelong Success (McGraw-Hill, 2006) and 9 Elements of Family Business Success: A Proven Formula for Improving Leadership & Relationships in Family Business (McGraw-Hill 2008).

via blogs.thealternativeboard.com

Rethink Your Business Approach. Driving Top Line Growth through Effective Innovation 

Strategies defining business in the 20^th Century no longer work in meeting today’s challenges. Companies are reinventing how they respond to consumers, employees and suppliers. At InnoThink Group we help companies find new methods of increasing top line growth and achieving competitive advantage. 

With InnoThink Group as your innovation partner, your company will create and implement growth strategies that work.

Innothink Group is a strategic management and innovation consultancy.

Our Guarantee. Where many consulting firms are reluctant to bear risks or tie their rewards to project outcomes, we decided to build a better model. We align our success with yours. We’re outcome obsessed, outcome paid, putting nearly two thirds of our fees at risk subject to hitting predetermined milestones. More than a guarantee we wanted from the outset to create true partnerships with shared responsibility. See a few of our clients. 

We will enable you to: 

1. Effectively create an Innovation culture that drives top line growth
2. Total customer responsiveness
3. Develop creative leadership
4. Create uniqueness
5. Turn manufacturing into marketing weapons
6. Pursue fast paced innovations
7. Set qualitative innovation goals
8. Develop an inspiring vision
9. Create a sense of urgency
10. Demand total integrity
11. Exceed shareholder expectations
12. Increase top line growth

 For speaking, coaching or consulting inquiries complete the  contact form >>> or call719-649-4118.

Also: 

• Define an Innovation and Growth Strategy
• Build Innovation Capabilities 
• Learn to avoid commoditization
• Generate Customer Insights
• Blueprint Business Model
• Prototype and Model

Email: CEO Jim Woods

Call: +1 719- 649-4118

 

4 Ways LinkedIn Groups Drive Traffic to Your Website: Social Media

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Do you feel like you’re wasting time whenever you log into LinkedIn? If so, you’re not lone. Nearly everyone I know is disappointed with the results they get from spending time on LinkedIn. Very few really know how to make LinkedIn work as a traffic source or marketing medium.

 

 More Traffic or Better Traffic? How ‘Bout Both?

The bad news: LinkedIn may not be the most prolific traffic source for driving traffic.
The good news: Linkedin tends to be a source of very high-quality traffic. Leads are more qualified, more targeted, more focused on ‘doing business’ than ones coming from Facebook, Twitter or Pinterest.

Based on personal experience, I can tell you that LinkedIn can send gobs of traffic to your website. Not kitten video-seekers, but qualified prospects curious about doing business with you. In fact, for one month last summer, LinkedIn sent more visitors to my website than Google.

Here are four great ways to leverage LinkedIn Groups as a real source of traffic

1. Create a Unique Profile. The foundation for a solid LinkedIn traffic strategy is setting up a unique profile. What does that have to do with Groups? More than you might think.

Having an engaging profile establishes your credibility, tells visitors and group members what’s special about you and why they should pay attention to you. These factors are essential for your long-term goals.

Many of your group co-members will judge you, at least in part, based on your profile. Many will check out your profile before clicking on your links. They want to make sure you’re not a spammer or a psycho.

Most people make the mistake of creating profiles that look like old-fashioned résumés.  In fact, the built-in Help Guides and descriptions will lead you to believe that’s what you should be doing. Don’t make that mistake. Create an interesting, compelling, visitor-centric profile. Stand out.

2. Join groups where your prospects congregate.  It’s natural to want to connect with your colleagues, and that’s how most LinkedIn users select which groups to join. Keep in mind that most of your peers will never become your clients.

Let’s say that you’re an SEO expert. You can find plenty of groups for people just like you. But, if you spend your time there, you’ll mostly be “preaching to the choir” when you start discussions and share links. Additionally, you’ll just be one of many SEO experts in the group. You’ll be able to have fun talking shop, but you probably won’t be marketing your services to them.

On the other hand, if you join groups of small business owners, you might be the only person in the group who understands how to rank on Google. Now you get to be the resident expert. You get to educate the entire group!

LinkedIn allows you to join up to 50 groups. No matter how many you become a member of, spend at least half of your time where your ideal prospects are.

3. Discussions. When starting discussions, be Relevant, Riveting and Regular.

This is the main active part of your traffic strategy.

Relevant – When you write articles, blog posts, etc., share them in groups where they will be appreciated and valued. The SEO expert’s article probably isn’t appropriate in a group for offline marketers.

You can start new discussions to present your content, but you should also post relevant links in response to discussions that others are already talking about.

Riveting – Share compelling content. Again, stay focused on the reader. What are her struggles? What is he just dying to know? What benefits are group members striving to obtain that you can deliver?

The content also has to be packaged in a riveting way. The most traffic I’ve ever received from LinkedIn came from discussions entitled “Satanic Sales Pitches.” That turned out to be a very effective attention-grabber.

Like everywhere else on line, there’s so much clutter, you can’t afford to be boring.

Regular – I advise people to start 2 or 3 conversations per week at most.

If you post too infrequently, you’ll start losing ground. But don’t be that person who posts 5 links back-to-back every day of the week. You’ll only irritate people, and moderators might block you or kick you out of the group.

You’ll also want to participate in other people’s discussions. That shows you’re not self-centered. You want to listen as well as speak.

4. Start your own groups.

If you have the time to dedicate, or if you can enlist the help of trustworthy managers and moderators, starting groups is an unparalleled opportunity to market yourself and drive traffic where ever you want.

The benefits of starting your own groups are obvious. Instant credibility, a captive audience and free reign to direct all conversation that takes place in the community.

You also get to send an email to your membership up to once a week. It’s almost like a free weekly newsletter. You have the chance to educate, persuade, sell, and link to content that you want your members to know about.

You already know that they’re interested in the topics you’re addressing, so they are likely to be high-quality potential customers.

Imagine what you could do with 500, 1,000, 10,000 group members? Would that transform your LinkedIn experience?

I achieved nothing during my first year on LinkedIn. I didn’t get it. But through plenty of trial and error, I discovered what’s possible and what works. Take these ideas and implement them. Experiment. You can accomplish so much more than you’re used to.

I’d love to hear your success stories. 

Donnie Bryant is a direct response copywriter and marketing consultant. He specializes in radically improving businesses with Stealth Salesmanship and Strategic Marketing. Find out more at http://donnie-bryant.com/.> via zddesign.net

 

Searching For New Solutions to Attract and Retain More Customers? Looking for a Strategic and Innovation Advisor to work on retainer? A riveting speaker? 

Jim Woods is president and founder of InnoThink Group; a leading Strategic Management and Innovation Consulting Firm in Denver, Colorado. He is an author, speaker, and a strategic innovation and hypercompetition expert to profit, non-profit organizations and municipalities. He advises clients with an objective view of their competitive capabilities and defines a clear course of action to maximize their innovation return on investment to achieve profitable growth. Build a capability for ongoing competitive innovation across your company. Call 719-649-4118 or complete our form: contact us for more information on hiring Jim to advise or speak for your next event.