Tag Archives: management

A Tale of Two CEOs

When I read about the demise of HMV, there was a quote from here that rang a bell:

The relevant chart went up and I said, “The three greatest threats to HMV are, online retailers, downloadable music and supermarkets discounting loss leader product”. Suddenly I realised the MD had stopped the meeting and was visibly angry. “I have never heard such rubbish”, he said, “I accept that supermarkets are a thorn in our side but not for the serious music, games or film buyer and as for the other two, I don’t ever see them being a real threat, downloadable music is just a fad and people will always want the atmosphere and experience of a music store rather than online shopping”.

Sounded eerily familiar, and then I managed to find it:

I outlined to the Fairfax board what I described as a ‘catastrophe scenario’, which involved losing a decent chunk of their classified advertising, and they chose to totally ignore that. Roger Corbett, who was then a board member and is now the chairman of the company, he stood up at the front of the board table and he picked up a quite fat edition of the Saturday Sydney Morning Herald that was sitting there. And he held it up in front of the board members and he said to them, ‘I don’t want anyone ever coming into this boardroom again telling us that people will buy cars or houses or look for jobs without this.’ And he thumped the big fat Saturday Sydney Morning Herald on the board table.

Two companies, major problems, the same root-cause. You can’t always ignore problems in the hope that they go away or don’t materialise.

Everyone should act like they are leaving…

Perhaps a silly management suggestion, but I can’t help thinking organisations would be better if everyone could embrace the sense of de-mob happiness they get when leaving. But without actually leaving.

When you’re leaving you document, at least you try to. When “the person who knows everything” is leaving, you desperately try to stop the knowledge flying out the door asking endless questions.

This of course doesn’t work.

Asking questions only works when you know what to ask. We’ve all been in office until 8pm on the last day writing documentation, desperately trying to summarise three years in a large document. Later mutters of “if only he’d told us…” fly around the office, while the unloved document sit unread in an inbox.

Living documentation on the other hand does stand a chance of being used, but again is rarely updated. How often do you find yourself saying “if only I had the time?” when considering automating something with a script or a macro, or handing it over to an operational team. We never do though, the training might take a half a day, and it’s only 15 minutes to do the trivial operational task. 15 minutes every day. Forever.

Which is when we get to money-laundering legislation. Banks and other financial institutions enforce a two-week holiday for many stuff, in the hope that any illicit positions will become apparent in that time.

I think all companies can embrace this, if you have someone who can’t take two weeks leave without major ramifications then your company is at risk (once you’re more than a five-man band). Illness, family crises, geopolitical situations and ash-clouds don’t tend to arrive with as much notice as holiday does, and can easily last longer.

Instead of seeing it as headache, the ‘flexible organisation of the future’ should use handover to distribute work in a way that cross-pollinates and leaves the right people doing the right things at the right time; there is no reason to hand back the same work you were given. Even in the ‘rigid organisation of the past’, handover makes painfully clear where your weakness lie.

The final point that is most interesting, but dangerous to explore: the sense of freedom people often get when leaving. I’ve seen managers who were appalling up to the point that their “strategic exit” was negotiated, and even where they were pushed, for the final month their performance improved.

Was it their impending freedom, or the ability to ignore the latest “corporate update” emails about the new org-structure? Obviously you can’t ignore all future things, and ignoring the elephants is never a good idea, if nothing else they can be easier to deflect from a distance. Freed from all the potential faff of the future, people feel more able to perform in the present. Perhaps we just need to send less update emails?

If we can find a way to foster some of those leaving behaviours in an ongoing culture, and we can do it without diminishing commitment; we can build organisations that perform better. I don’t think the principles are hard:

  • When only you know it, document it
  • When the documentation is wrong, fix it
  • When you’re doing something repeatedly, automate it
  • There’s never a good time to take holiday, book it anyway

I’d like to think that would help create the kind of place good people would love to work.