Miss Pray

5 11 2012

Excerpted with the permission of the author of Love Works – Seven Timeless Principles for Effective Leaders from Chapter 5.2

Miss Pray was my seventh-grade teacher at Woodrow Junior High School in Battle Creek, Michigan. She was in her seventies back then but sharp as a spear. Her thick white hair was always perfectly groomed, and her skin was taut across her strong cheekbones. She was intense, a disciplinarian who didn’t choose to smile much. And I loved her—she was a wonderful instructor.

One day Mom and I attended my parent-teacher conference together with Miss Pray. It wasn’t normal for the student to attend, but Miss Pray had requested my presence. I assumed it was going to be a great meeting. Perhaps she would bestow some kind of honor on me; after all, I had straight A’s and perfect attendance.

Miss Pray began the meeting by speaking directly to my mother and explaining that I was an excellent student. She said I grasped concepts quickly and was able to apply them in various situations. She appreciated my focus, attendance, and behavior while she was teaching. Things were going just as I’d expected.

Suddenly my eyes widened when she said, “Mrs. Manby, I wanted Joel to be here so we could discuss an issue together. I would like to speak to him directly, but I wanted you here so you could hear my words and help Joel become a better person.”

Forty years later, thinking about that conversation still opens a pit in my stomach. It came as a complete shock, and I had no clue what she was about to say. Miss Pray looked directly at me. “Joel, you are a gifted leader. I have seen many people come through these halls, and you are at the very top in your ability to gain people’s trust, take control of a situation, rally those around you, and get things done.”

I still wondered where all this was headed. So far it sounded pretty good, but I knew more was coming. Miss Pray continued, “However, you are a very poor listener. I have watched you take over a class project group when you were not even assigned to be the leader. Then, what’s worse, you didn’t listen to others in the group when they tried to speak. You interrupted them and often cut them off.”

She wasn’t finished. “I have also watched you on the kick-ball field during intramurals. You weren’t the captain, but you took over and wouldn’t listen to people—you just directed them where to go. Your friend Jeff was very upset because you wouldn’t listen to his thoughts about who should play where.”

As the truth of her words began to sink in, she made her closing statement. “Joel, when you don’t listen to others, it sends them a very negative and unflattering message. You are telling them they are not important. You are telling them you are better than they are. You have the natural ability to be a great leader, but you are going to have to fix your listening skills or you will be limited in how far you can go.”

I sat there in silence, a bit stunned. I felt horrible, and deep down I knew her assessment was accurate. Mom thanked Miss Pray for her care and concern, and we left. I never forgot that day. Miss Pray cared enough to call me out, and that made me a better leader going forward. I was failing to trust my classmates and friends, and that failure would have crippled my ability to lead.

Trust Me Miss Pray was right. When we interrupt or respond without taking account of what others have said, we send several messages—none of them good:

• My idea is greater than your idea, so I don’t have to listen.
• Interrupting you is okay because your response isn’t that important.
• I’m not listening to you because I’m already preparing my response.

The truth is this: interrupting is a sign of distrust.

That’s a strong statement, but it’s undeniable. Hard-driving leaders who often interrupt will always justify their behavior. “I already know where that person’s headed, and I want to save time.” Or, “I’m just efficient and don’t have time to waste.” If interruption is seen as simply being rude, many leaders don’t think it needs to be changed—a little rudeness in an organization isn’t the end of the world. However, when leaders understand that interrupting others shows a lack of trust, the notion of rudeness gains significance.

Would your employees or coworkers rate you as a good listener or a poor listener? Would they say you listen without interrupting? Would they say you hear them? If you struggle with listening well, as I did early in my life and career, these simple steps can help:

1. Don’t say, “I understand how you feel, but …” Most people won’t feel that you understand, especially if you discount their thinking and immediately move in a different direction.
2. Instead, summarize what you’ve heard. If you really trust them, they will agree with your summary and feel as if their idea has been given a fair hearing.
3. If you go a different direction, articulate why. Always try to explain your logic when differing with some of your team. They may not agree, and that’s okay, but you’ll all know what everyone is thinking.

Listening well is critical because it demonstrates trust and builds a team’s sense of camaraderie and cohesion. Poor listening is more than forgivable rudeness; it’s a breach of trust and not a quality of leading with love.

Joel Manby President and CEO of Herschend Family Entertainment (HFE) At HFE, the largest family-owned theme park corporation in the U.S., Manby and his team have proven you can get financial results and lead with love, generating a 14% annual return to shareholders while also helping thousands of employees in financial need via the company’s Share It Forward Foundation. 100% of the royalties from the sale of Love Works go to this foundation.

You can find out more about Joel and Love Works at: joelmanby.com

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WHAT’S ON YOUR SCORECARD?

29 10 2012

Guest Post by Mark Miller

People love to keep score. Leaders help people keep score. These two facts both contribute to improved performance. However, improvement is not automatic; a key driver in the process is the scorecard. Today, I want to address the fundamental question every leader and every team has to struggle with: What’s on your scorecard?

On the surface, it seems like a simple question. In reality, it can be one of the most difficult and important questions a leader has to make. An effective scorecard enables a leader and the team to quickly identify critical issues and to monitor the impact of their work.

I often draw the picture above and share the following story to stimulate the conversation regarding what should be on the scorecard…

Suppose you’ve been stranded on a deserted island for 5 years. When they come to rescue you, you ask, “How’s the business (or church, or school, or whatever you’re charged to lead) doing?” The response: “Which 3 numbers do you want?”

That’s all you get – not an annual report, not an Excel spreadsheet, only 3 key numbers. Which ones will you choose? The numbers you choose are your leading contenders to be on your scorecard. Without even realizing it, if you’ve chosen wisely, you’ve identified the primary health indicators for your business/team.

Often when I lead a group through this exercise, there are questions. Here are some of the most frequently asked ones and my responses.

Q: Can we have more than 3 numbers?

A: For the purposes of the exercise no – in reality, sure. Be careful – too many metrics on the scorecard diffuses focus and can negatively impact your results.

Q: What if we really want to track dozens of different performance metrics?

A: That’s great. You can track anything that you believe will enhance your performance; just don’t put them on page one of the scorecard.

Q: Is there a second page?

A: There can be. Think about a major league baseball pitcher. On page one of their scorecard you might find: Wins and Losses; Earned Run Average (ERA) and Innings Pitched. However, on page two, you might find: pitch count, pitch location, pitch selection and even release time to the plate. If you aren’t getting the outcomes you desire, you can often find clues on page two.

Q: Can the scorecard change?

A: Absolutely. I’ve seen many scorecards that are anchored by a few constant metrics; but also contain one or two key numbers that change over time as the needs of the business/team change.

These are just a few of the questions that you and your team can think about. At the end of the conversation, be sure your scorecard embodies the outcomes you desire because… what gets measured gets done.

Note from Bob:  You were probably hoping that Mark would give you the answer to “What are the 3 key numbers you should ask for?”  By now you have realized that he did not!  So, what are the 3 key numbers that you would ask for?  

Please share your answer below!  Thanks!

Mark Miller is the V.P. Training and Development at Chick-fil-A and a best-selling author and communicator.

Mark Miller’s Books:

Would you like the link to Mark’s blog? greatleadersserve

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Would You Like to Know How the Walt Disney World Textile Services Lowered Their Annual Employee Turnover Rate from 85% to less than 10%?

25 10 2012

Last week we took took a group of our “Emerging Leaders” on the Business Behind The Magic Tour at Walt Disney World.

 

Our first stop was the laundry.    I bet you are thinking, “Wow!  The Walt Disney World Laundry – How Exciting!  NOT!!!”

With future stops at Epcot Cast Services where all of the Cast Members report in for work and change into their costumes and then with a visit to the The “Utilidor” System (tunnels) underneath the Magic Kingdom, I was hoping that the stop at the laundry would be quick so we could get to the more exciting locations.  Turns out that this first stop shared the best Leadership Story of the day:

The annual employee turnover rate at the WDW Laundry services was approximately 85%.   WDW was considering outsourcing laundry to another company.  But as their leadership met they decided to try another approach. They decided to push leadership down to the Cast Members (all employees at WDW are called Cast Members).  Leaders at the WDW Laundry met with all of the Cast Members and asked them two questions:

1. What can we do to make your job easier?

2. What changes would you recommend to serve our Guests better?

They shared that it took some time before the Cast Members began to respond.  Initially Cast Members did not feel the freedom to share their thoughts – they feared that their responses would be viewed as criticism.  It took about six months of asking before the Cast Members began to engage.

But when the Cast Members began to share their ideas,  Leaders listened and changes were made.  For example, today all Cast Members can raise or lower the platform on which they are standing to an ideal working height.  Air conditioning vents are now directly overhead of their work areas.

There was also a “hook type” tool that they were using to empty the dirty laundry carts – which was tearing a lot of bed sheets.  Engineering was brought in and with the Cast Members help they re-designed this tool, saving several hundred thousand dollars a year.

They have machines that automatically fold sheets and towels.  This machine has bands that move the sheets and towels forward – but there was a problem – the bands quite often break – stopping the whole process.  One of the Cast Members who had recently left the Navy had an idea!  He had learned to tie a special knot in the Navy that he thought might be able to be used to tie together the ends of a broken band.  It worked!  Annual cost savings over $100,000!

Laundry Cast Members suggested some cross training with the Housekeeping and Restaurant Cast Members – where they got to see exactly how the room linens and restaurant linens touch all their Guests.  WDW calls this cross-utilization and is intended to have the different teams really “live” in the other teams’ job for a few days.  When  Housekeeping and Restaurant Cast Members spent a few days working in the Laundry they came back with new appreciation for their counterparts and the daily challenges they face.

The Disney leaders also shared with the laundry Cast Members how significant their contribution is to every Guest – without the laundry done well – everything at Walt Disney World would come to a complete stop.

Today Cast Members set their own Production Goals –  Turns out they set higher production goals than their leaders would and have demonstrated they are more likely to actually achieve those goals than if their leaders had.

But the really amazing part of the story is that today Annual Cast Member Turnover in the WDW laundry is less than 10%.  Cast Members get hired and stay until they retire!  And it all started when Leaders began asking the WDW Laundry Cast Members two questions!   WDW calls this “Employee Engagement.”

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You Are Only as Great as the Questions You Ask

20 09 2012

Guest Post by Jorge Barba

Leaders lead through questions.

Farnam Street published a post about the art and science of asking better questions. The post includes some good tips on how about asking great questions, so be sure to check it out after you are done here.

Anyway, this got me thinking…

I like listening to interviews of any kind. Ever since I was a kid I like to watch and listen to the post-game interviews of sports events like the NBA Finals or the Super Bowl. Sometimes it is repetitive, but listening to these interviews helped me understand what makes a good interviewer. It also helps me understand how to ask and when to ask questions.

I also watched late shows like Jay Leno, David Letterman, Conan, etc. And also watch Charlie Rose every now and then. I like watching them because they are in the business of getting people to talk.

There are all kinds of questions. From sports, business, life, etc. And as a leader, having that arsenal in your head is very potent because…

If you want to lead, you need to re-frame

For innovators and leaders who want to unleash innovation inside their companies, developing the ability to ask great questions is imperative. To be able to re-frame a problem in a way that sparks different answers is a very valuable skill. And, it is probably one of the most difficult skills to master. Of course, for innovators it all starts with the known suspects: “why”, “why not” and “what if”.

But, there are more specific questions we can ask. And, even more profound ones.

For example, here are 46 Questions to help innovators know what customers want. These were taken from the table of contents from Tony Ulwick’s book What Customers Want:

Formulating Innovation Strategy
1. Who Is the Target of Value Creation and How Should It Be Achieved?
2. What Types of Innovation Are Possible?
3. What Growth Options Should Be Considered?
4. Where in the Value Chain Should We Focus to Maximize Value Creation?
5. How Do We Handle Multiple Constituents with Potentially Conflicting Outcomes?

Capture Customer Inputs
6. Why Should Companies Gather Customer Requirements?
7. What Three Issues Plague the Requirements-Gathering Process?
8. What Types of Data Do Companies Commonly Collect from Customers?
9. What Customer Inputs Are Needed to Master the Innovation Process?
10. What Methods Should Companies Use to Obtain the Necessary Information?
11. How Do You Know Which of the Three Types of Inputs You Should Capture?

Identifying Opportunities
12. What Is an Opportunity?
13. What Three Common Mistakes Are Made in Prioritizing Opportunities?
14. How Should Companies Prioritize Opportunities?
15. How Do You Identify Underserved and Overserved Markets?
16. How Dos Value Migrate Over Time?
17. What Implications Does the Outcome-Driven Paradigm Have for Competitive Analysis?

Segmenting the Market
18. What Is the Purpose of Segmentation?
19. How Has the Practice of Segmentation Evolved?
20. Why Are Traditional Segmentation Methods Ineffective for Purposes of Innovation?
21. What Is Different About Outcome-Based Segmentation?
22. How Is Outcome-Based Segmentation Performed?
23. How Does Outcome-Based Segmentation Address Development and Marketing Challenges?
24. How Is Job-Based Segmentation Different, and When Should it Be Used?

Targeting Opportunities for Growth
25. What Is Different About Targeting for Innovation?
26. What Types of Broad-Market Opportunities Are Likely to Be Attractive?
27. What Segment-Specific Targeting Strategies Are Effective?
28. How Does a Targeting Strategy Result in a Unique and Valued Competitive Position?
29. Why Do Companies Fail to Target Key Opportunities?

Positioning Current Products
30. Why Does Messaging Often Fail to Tout a Product’s True Value?
31. What Are the Prerequisites for an Effective Messaging Strategy?
32. What Messaging Will Be Most Effective?
33. Should a Company Message Along an Emotional or Functional Dimension?
34. How Does the Sales Force Have Immediate Impact on Revenue Generation?
35. What Is the Advantage of an Outcome-Based brand?

Prioritizing Projects in the Development Pipeline
36. What Issues Do Companies Face When Prioritizing Projects?
37. What Method Is Used to Identify the Winners and the Losers?
38. Which Efforts Should Get Top Priority?
39. What Other Factors Affect Project Prioritization?

Devising Breakthrough Concepts
40. Why Does Traditional Brainstorming Often Fail to Produce Breakthrough Ideas?
41. How Are Breakthrough Concepts Successfully Generated?
42. What Are the Mechanics Behind Focused Brainstorming?
43. Why Do Traditional Concept-Evaluation Methods Fail?
44. How Is the Customer Scorecard Used to Evaluate Product and Service Concepts?
45. How Are These Methods Applied in Practice?
46. What Is the Role of R&D in the Innovation Process?

More and better questions equal more and better solutions.

So, how can start asking great questions?

Here are three tips:

  1. Identify and collect great questions. Questions are everywhere, and it is as simple as storing them in a notebook. You can find them on surveys, books, white papers and even on Quora. There is an endless source of supply.
  2. Use a tool like the Reframing Matrix. Reframing is about shifting perspectives, this simple tool helps you do that in a visual way.
  3. Use other people’s brains. If you have a diverse set of friends with different backgrounds and professions, use their brains. How would they see your problem from their point of view?

Jorge Barba   @jorgebarba Innovation Insurgent who’s all about making change happen. Creativist. @disney Fanatic. Passionate about creating a smarter world. Chief Strategist @blumaya

http://www.game-changer.net

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Questions as the Ultimate Leadership Tool

3 09 2012

Excerpted with the permission of the author from Leading with Questions pages 22-23

Another example of a leader who makes effective use of questions is Commander D. Michael Abrashoff.  Through what he calls “Grassroots Leadership,” Commander Abrashoff turned around the operations of the USS Benfold, one of the U.S. Navy’s most modern warships.  His methods were not complex, yet the results were astounding.

Under Abrashoff’s twenty-month command, the Benfold operated on 75 percent of its allocated budget, returning $1.4 million to the Navy coffers.  The promotion rate of his people was two and a half times the Navy average.  The predeployment training cycle, which usually takes a total of fifty-two days, was completed by the Benfold crew in just nineteen days.

A third of all recruits don’t make it through their first term of enlistment, and only 54 percent of sailors stay in the Navy after their second duty tour.  Commander Abrashoff had 100 percent of the Benfold’s career sailors signing on for another tour.  It is estimated that this retention alone saved the Navy $1.6 million in 1998 (Crowley, 2004).

What did he do to stage such a turnaround in less than twenty months?  As he himself remarks, he continuously:

  • Asked questions
  • Listened
  • Then he acted on what he heard

Almost immediately upon taking command, he had a fifteen to twenty minute personal interview with each of his staff of three hundred.

He asked each person these three questions: 

  1. What do you like best about this ship? 
  2. What do you like least? 
  3. What would you change if you could?

Abrashoff acted as quickly as he could to implement the ideas that came from these questions.  He realized that simply following existing procedures and doing things the way they had always been done could no longer be effective.

Abrashoff set the vision and trusted his crew.  He helped people take pride in their work.

Whenever I didn’t get the results I was looking for on the Benfold, I tried to look inward before flying off the handle.  I also asked myself three questions each time:  

  1. Did I clearly articulate the goals I was trying to achieve? 
  2. & 3.  Did I give people the time and resources they needed to succeed? 

Eighty percent of the time, I found that I was part of the problem and that, through my actions alone, I could have altered the outcome significantly.

Abrashoff questioned every rule.  He noted that when an officer or sailor came to him for approval or a signature on something, his first questions was always, “Why do we do it this way?”

If the answer was, “Because this is the way it’s always been done,” I would say, “That is not good enough.  Find out if there is a better way to do this.”

After a while, people began doing their homework before they ever brought issues to me.  And they could explain, “This is why we do things this way.”  Or, “We’ve thought of a better way to get this accomplished.”  It drove my officers crazy, but by creating a culture in which we questioned everything, we were training our people to keep their eyes open to new ways of doing business [Abrashoff, 2002].

Now three questions for you:

A.  When you you going to ask yourself:

  1. Did I clearly articulate the goals I was trying to achieve? 
  2. & 3.  Did I give people the time and resources they needed to succeed? 

B.  When are you gong to ask your staff:

  1. What do you like best about working here? 
  2. What do you like least? 
  3. What would you change if you could?

C.  What are you going to do with the answers you receive?

Michael J. Marquardt is the President, World Institute for Action Learning and a Professor at George Washington University. Mike is the author of 20 books and over 100 professional articles in the fields of leadership, learning, globalization and organizational change including Action Learning for Developing Leaders and Organizations and Leading with Questions.

http://www.wial.org

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Find Your “WHY” to Improve Performance

30 08 2012

Guest Post by Sean Glaze

What is your motivation?

“WHY” do you lace up your shoes in the morning?

One of the things every great performer does to improve performance, regardless of their field, is find their “WHY.”

Imagine if I told you about a hidden suitcase, across town, that  was filled with 800,000 dollars and I told where it was located, and that you could have the cash if you were able to get to the suitcase in the next three hours… would you find a way to get there?

Would traffic stop you?

Would you care about the weather or less important things on your schedule or other people wondering why you were so determined to get across town?

Would you waste time and complain about the obstacles along the way, or just get past them in order to reach the suitcase and get what was inside?

Now, imagine I told you the suitcase was full of “Monopoly money” instead.

Would that suitcase be your only priority and motivate you to overcome obstacles?

You see, the difference between the two suitcases, and what is likely your very different levels of motivation when considering going after them, is the why. When the “WHY” is big enough or important enough, the “HOW” normally becomes much easier to figure out.

But if the “WHY” in your life is just “Monopoly money” – if it isn’t really something you are passionate about – you will come up with excuses or busy yourself with distractions and be far less motivated to overcome obstacles in your path.

Some people are motivated by money – but that only lasts so long… Carrot and stick reward systems are the least effective of all motivators.

Some people are motivated by excitement or fear… they are either so excited about where they are going, or afraid to stay where they have been, that it becomes a powerful “WHY.”

But the most powerful “WHY” you can identify is loyalty to a person or cause that you love.

When you are motivated to do something for others, you rarely let anything get in the way of achieving your goal.

What is your “WHY?”

If you haven’t asked and answered that question, you will always be at a performance disadvantage when you face competition who has answered it.

Chris Paul was raised in North Carolina, and his grandfather had a large hand in raising him.

The day after Chris Paul signed his scholarship to play at Wake Forest, his grandfather was murdered at 61 years old… outside the gas station where Chris had grown up working with him.

For the next game his high school team played, he vowed to honor his grandfather by scoring 61 points… one point for each year of his life.

He had never scored more than 39 in an entire game before.

But Chris Paul scored 24 in the second quarter alone. He had scored 59 with 2 minutes left in fourth quarter – and after driving to basket and making the layup, he was fouled.

He missed the free throw on purpose and left the game with the 61 points he had pledged to score for his grandfather. His team won the game.

So how did he score so many points?

He had a “WHY!”

If your “WHY” is big enough your “HOW” becomes easy.

When you get tired, or frustrated, or begin to doubt… it is your “WHY” that will give you the energy you need to keep going. Your “WHY” won’t let you give up.

Galatians 6:9 says “Let us not become weary in doing good, for at the proper time we will reap a harvest if we do not lose heart.”

What is the “WHY” that will keep you focused and not allow you to lose heart?

Find your “WHY!”

As an experienced author, speaker, and team-building coach, Sean Glaze engages and influences audiences with a unique blend of dynamic content, interactive activities, and practical action steps. If you are interested in team development or need a team building speaker for an upcoming event, you can reach him at sean@greatresultsteambuilding.com.

(You can also follow him on twitter for teamwork insights and resources!)

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Power of Questions

20 08 2012

Special Note:  In 2006 I was browsing in a (now closed) Borders Bookstore and came across Leading With Questions by Michael Marquardt.  I only had to peruse a few pages before declaring to myself, “This is a Keeper!”  This book changed forever how I lead!  Recently I have had the privilege of interacting with Mike and he graciously agreed to do several guest blogs and has given me his “cart-blanch” permission to excerpt from Leading With Questions in future posts! Thank You Mike!

Guest Post by Michael Marquardt

Questions can elicit information, of course, but they can do much more. Great leaders use questions to encourage full participation and teamwork, to spur innovation and out-of-the box thinking, to empower others, to build relationships with customers, to solve problems, and to change culture. Questions wake people up. They prompt new ideas. They show people new places, new ways of doing things. They help us become more confident communicators. Most successful leaders use questions frequently.

There are two types of mindsets that may reside in the questioner: the learner and the judge.

In the learner mindset, the questioner seeks to be responsive to circumstances. Thus, she is more likely to think objectively and strategically. The learner mindset seeks and creates solutions, and relates to others in a win-win manner. Leaders with a learning mindset tend to be more optimistic and presuppose new possibilities, a hopeful future, and sufficient resources. They exude optimism, possibilities and hope. They are thoughtful, flexible and accepting. Their relationships operate in a collaborative and innovative mode. They encourage workers to be more flexible, more open to new possibilities, and less attached to their opinions and the need to be right. Such leaders seek to strengthen people’s ability to be conscious of their choices and responsible for their thoughts, feelings, behaviors and outcomes.

The judge mindset is reactive. It leads to over-emotional thinking and behavior. Leaders with the judging mindset tend to be more automatic and absolute in their actions; they emphasize negativity, pessimism, stress, and limited possibilities. The focus is more on problems than on solutions. Judging questions are inflexible and judgmental. For the judger, questions are more likely to be reactive to the situation, and thereby lead to automatic reactions, limitations, and negativity. Judging questions result in win-lose relating as they all too often operate in an “attack or defend” paradigm. Such questioners often deny self-responsibility and search for other people or circumstances for blame. Leaders with the judging mentality believe they know the answers already anyway,

Despite the evidence questioning is a critical competency of a leader, few leaders practice the art of asking questions for three main reasons:

  1. Negative experience with asking or answering questions that has generated a fear and discomfort with inquiry
  2. Lack of skills in asking or answering questions based upon lack of experience and opportunity, lack of training, and limited or no models
  3. Cultures that discourage questions, especially those that challenge existing assumptions and policies.

Michael J. Marquardt is the President, World Institute for Action Learning and a Professor at George Washington University. Mike is the author of 20 books and over 100 professional articles in the fields of leadership, learning, globalization and organizational change including Action Learning for Developing Leaders and Organizations and Leading with Questions.

http://www.wial.org

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To Succeed You Must Ask The Right Questions

16 08 2012

Guest Post by Daniel Newman

Our businesses are full of smart people, and we are supported by even smarter technology.

This has opened a world of possibilities for the organization. Real time on demand information that tells us everything that is going on with our business.

Real time sales, financials, analytics, and a world of other reports. Where you want it, when you want it.

These tools can all be great for business. However, the keyword here is “Can.”

From the time I was a child my father used to always tell me, “The numbers don’t lie.”

He was an entrepreneur. One that pulled himself up by the bootstraps and built a successful business out of sheer grit and determination. With little formal education beyond high school he became convinced the numbers were the story.

I’m pretty certain now that I’ve gained a bit more experience that much of what he said was correct. The numbers do not lie. In fact, they are the most completely accurate representation of what is going on in a business.

However, the fact that the numbers don’t lie, doesn’t necessarily mean that they are useful. The numbers that are spit out at us via ERP, CRM, EDI, and a vast array of other systems are the words that tell a story. This story requires deciphering via a word key that is generated by the organizations people. Every report, the balance sheet, the income statement, the revenue analysis; all of them tell a story, but how do we determine what that story is.

Here is where better businesses set themselves apart.

For business is not determined by the answers because we all have them right in front of us. Business is determined by the questions we ask.

With the right questions we are able to recognize trends, identify plans and strategies, create KPIs, and execute to our plan. The continuous flow of data to our inbox allows us to continue shaping our visions and determine what the next question should be. It is from those next questions that we continue to arrive at better outcomes. In short with the right questions we can control our circumstances.

However, if we ask the wrong questions, or perhaps worse yet no questions we become constrained by our situations. Moreover our circumstances begin to control us.

Take for example a three year revenue trend. Let’s say that the report shows sales rising by 5%.

For some companies they will look at that and assume that everything is good. Revenue is up, and life is grand.

Here is another way it could be looked at and I suggest this method as a way to begin asking the right questions.

Big Picture Question: Why is revenue up?

Second Level Questions: Is it related to new customers (Width), more business from current customers (Depth) , Did margin increase or decrease (Profitability), or was there one or two significant (perhaps beyond normal) large deals that created the higher revenue (One Time Deals)?

Third Level Questions: What trends can we identify (External, Internal Environment)? What if there are no giant deals next year (Risk Assessment)? What customers fell off (Opportunities)?

The depth of questions could go on and on, but with the “Right Questions” comes better business insight which propels an organization forward.

With this in mind, let’s talk a bit more about the example above…

If the answers to those questions showed that the business growth was related to one extremely large deal from a current customer that is highly unlikely of happening again. You may come to realize that your run rate business was actually down year over year and that you need to generate a plan to off set this. Further you may have realized that several large customers saw significant drop off in business and that they need some attention because they may have moved a portion of their business to someone else.

And with that lies the foundation of the story and the root of better business execution.

Everyday we are bombarded with data that can be used to help us run better organizations and drive more desirable outcomes. However, do not be fooled about the path.

The results do not lie within the data you are provided, but rather within the questions that this information drives.

Smart systems and smart people can give you all the tools you need. But only smart leaders know they must ask great questions.

So Dad, you were right when you said that the numbers don’t lie; however I hope you realize it was the questions you then asked that made you a success, and not just those numbers themselves.

Daniel Newman serves as the CEO of EOS, a quickly growing hosted IT service provider. Daniel is also VP of TMD connect, EOS’ parent organization. TMD is a national distributor for Cisco Systems. At TMD Daniel is responsible for the company’s strategy and business development activities.

You can follow Daniel’s blog at:  www.millennialceo.com

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How to Listen to Your Major Donor

13 08 2012

Guest Post by Richard Perry and Jeff Schreifels  

http://www.veritusgroup.com

We often write about the subject of listening because it is the most common reason Major Gift Officer’s fail at their jobs.

First, active listening means asking questions. Questions are the best way to secure interaction and make sure you are disciplining yourself to listen. There are four types of questions you should use in your interaction with donors:

Confirmation Questions – “So, NAME, what we have agreed to is X? Am I hearing you right on that?”

New Information Questions – “There was one thing I was wondering about, NAME. I’m curious as to why you are so interested in X? Would you mind talking about that more with me?”

Opinion Questions – “There is one thing I would like your opinion on, NAME. What do you think about X?”

Commitment Questions – “Thanks so much, NAME, for your commitment to give X. So, as I understand it, you will be sending in Y on DATE and Z on DATE. Is that correct?”

1. Always ask for permission to ask questions. This shows respect for the donor, not only about the topic of the question, but as to how you are using his or her time. Here is what it sounds like: “Do you mind, NAME, if I ask you a question?”

2. Explain reasons for sensitive questions. Let’s say you want to uncover the interests of your donor. One way to do that is to find out what other organizations and causes she gives to. But just coming out and saying, “What other organizations do you give to”, may be too abrupt and seem intrusive. A better way is to say, “In order for me to get to know you better, NAME, I’d like to understand what your interests are. Would you mind sharing with me what other causes you give to so I can understand this better?”

3. Ask what benefits are desired in the donor’s giving. It is very important to understand what the donor wants to get out of the giving transaction. This is fundamental. If you don’t know this critical piece of information you will not be successful in building a good relationship with the donor. Here is a way to ask this question: “May I ask you a question, NAME? [Yes]. Well, one of the things I understand about giving is that there are reasons, often specific reasons, that people give. Sometimes those reasons are all about the cause the donor is giving to. Other times it is the cause and other personal reasons, like to memorialize a loved one or to make a statement about something that is important to the you. What is it that matters to you in your giving to our organization? And what do you want to get out of it?” Then you talk about all of that.

So questions are a very important way to foster listening. Ask a lot of questions. Start with broad topics, then narrow down to more specific ones. And always build current questions on previous responses, which means you are taking notes about the conversations you have had.

How will you know you are not listening well? Here are some clues:
1. You do all the talking.
2. You interrupt.
3. You avoid eye contact.
4. You put words in the donor’s mouth.
5. You cause the donor to become defensive by the way you speak to her.
6. You argue before the donor finishes his or her case, which means you are paying more attention to how you will respond than to what the donor is saying.
7. You digress with stories because you LOVE your stories and the sound of your voice.
8. You overdo feedback.
9. You make judgements.

Listening is also a state of the heart. If you really care about the donor you will listen well. If you don’t, and the whole thing is about the money, you won’t listen. Catch yourself not listening and you have caught yourself not caring. And that is a problem. Not caring in major gifts is one of the most damaging things that can happen in the life of a Major Gift Officer.

Make a decision to care and you will listen well

Richard Perry and Jeff Schreifels 

Collectively, Richard and Jeff have over 55 years of fundraising experience.  They have been working together for over 15 years and love what they do.  That is why a few years ago they started a major gift agency called Veritus Group.

Would you like to check out their blog?  www.veritusgroup.wordpress.com

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Bury the Clichés

9 08 2012

Excerpted with the permission of the authors from Chapter 13 of Power Questions:

“I threw him out of my office.”

“What?”

I’m with Fred, the chief executive of the North American operations of a multinational corporation. Fred was formerly the chief information officer (CIO) of one of the world’s largest banks. He’s had hundreds of salespeople call on him over the years.

“You name the company,” he tells me, “Goldman Sachs, IBM, Accenture, McKinsey, EDS, and then every bucket shop between here and the West coast as well. They’ve all tried to sell me something.”

Fred is smart and tough, and doesn’t tolerate fools. But I have a hard time picturing him throwing someone out of his office.

“You literally kicked him out? You’re kidding?”

“I’m not kidding,” says Fred. “He asked the question.”

“Which one?”

“What keeps you up at night?”

He continues, shaking his head: “You see, it’s a terrible question. Overused. Clichéd. Stale. And worst of all, lazy. I hate lazy salespeople. At a certain point it seemed that every salesperson, banker, and consultant was asking that question. They were like lemmings. They’d come and call on me and invariably ask, ‘What keeps you up at night?’”

“They thought that by posing that question I would—as if by magic—immediately volunteer to tell them all about my toughest issues. Then, they could say, ‘Ah, we have a solution to fix that.’ I started escorting them from my office.”

“And it doesn’t work that way with you?” I sheepishly ask.

“No, it doesn’t. Nor with anyone else. Look, let’s get some more coffee and I’ll explain why. I’ll tell you what the really smart ones do that is effective.”

Fred’s executive assistant brings us two more fresh cups. We move from his desk to a small sitting area with a couch, a coffee table, and an easy chair. We settle in.
I can’t believe my good fortune. I’m like a fourteen year-old again, listening to my cigar-smoking, Cognac-sipping uncle Morton discuss his philosophy of good living. But now, I’m going to school with the world’s best instructor on how to have a great first meeting with an executive prospect.

Sir Isaac Newton, referring to his extraordinary scientific breakthroughs, said, “I stood on the shoulders of giants.” I feel like Fred is lifting me onto his back, and I’m definitely going along for the ride. Big time.

“Here’s why,” Fred explains, “‘What keeps you up at night?’ is a terrible question. First, it’s a shot in the dark. It doesn’t demonstrate to the other person that you’ve done your homework, researched the organization, and thought about the issues they face. It’s a question that requires zero preparation. That’s why it’s evidence of laziness.”
I’m scribbling furiously.

“Second, if someone doesn’t already know you pretty well, they are probably not going to tell you what is really on their mind. Teasing that out requires that you first build some trust and credibility. Come on! Think about it. Am I going to immediately share my innermost cares and concerns with some salesperson I’ve never met before? Are you kidding?

“Third—and this is especially true if you’re talking to a CEO or a really senior executive—this is a ‘problem question.’ At my level, I’m focused on growth and innovation, not operational problems. I have operating executives who are paid to worry about those problems. Ultimately, executives like me are paid for growth and innovation. ‘What keeps you up at night?’ doesn’t actually help you get at the most fruitful issues.”

“So, what do the smart ones ask?”

“You have to approach a meeting with me as a balancing act. You must prepare. Read my annual report. Search the web. Read my speeches. Watch the videos of me being interviewed. Review analysts’ reports. Learn about my priorities and strategies before you walk in the door.

“But then—and this is really important—when you sit down in front of my desk, don’t presume to know what my real issues are. Be confident, but be humble. Probe and possibly suggest, but don’t walk in here and tell me what I’m concerned about.”

“The great salespeople ask indirect questions that show they know their stuff. They say things like, ‘Fred, how are you reacting to the merger of two of your biggest competitors? Or, ‘I was intrigued by what you said at the investors conference in New York last month. How is your push into Asian markets going to impact your financial controls and risk management requirements?’

“The other day, someone had carefully read our proxy statement, and she asked me some very intelligent questions about our executive compensation plan. She wanted to know why we had made certain choices. It was an engaging discussion. She kept gently probing, asking questions. She learned a lot about what is on my mind and about my talent management and retention strategies. We were satisfied with our existing provider, and had no intention of giving her any business. But she was so artful—I believe her firm will get a project from us.

“In other words, ask me questions that implicitly show you are knowledgeable and experienced. Talk about your view of my competition, and how you think the industry is evolving. Get me involved in that dialogue. Then, I’ll start to open up. Once that happens, you can be a little more direct.

“You might even say, ‘Given all that we’ve discussed—x, y, and z—where do you wish you were making faster progress? Which of these issues are proving to be the toughest nut to crack?”

We wrap up, and I’m beaming. In one hour I’ve just had a semester’s course in advanced salesmanship.

Other Questions that are Clichés: 

“What has surprised you?”

This is a question people love to ask someone who has taken on a new job or been through a significant new experience. But there’s no good answer that is honest and positive at the same time. If you’re surprised about something, it implies you were naïve and didn’t know what you were getting yourself into! If you say nothing has surprised you, then you risk coming across as complacent or insensitive. Barry Glassner, the President of Lewis and Clark College, put it this way in the Wall Street Journal:

“If I had a thousand dollars for every time I’ve been asked that question—What has surprised you?—in the seven months I’ve been in my new position as a college president, I could buy a well-equipped Lexus. It’s the ultimate ‘gotcha’ question…every answer is perilous.”

Here are the questions I prefer to ask instead: “What have you been focusing on most during your first six months on the job?” or “Have you developed a longer-term agenda yet for your role?”

“What question haven’t I asked?”

A well-known marketing expert calls this his “killer” question for wrapping up a sales call. This question-about-a-question is a patently obvious attempt to make your prospective customer a coach to you in your sales process rather than an adversary. It’s a somewhat manipulative, cutesy attempt to say, “We’re really on the same side of the table here…give me some advice to be a more effective salesperson!” Like “What keeps you up at night,” it’s also overused.

There are many more like this. They fall into the same category as the “get them saying ‘yes’ three times before you ask” approach that you should shun.

Here are the questions I prefer to ask instead: “Are there any issues we haven’t discussed that you think are relevant to this particular challenge?” or, “Is there anyone else you think I should I talk to in order to get additional perspective on this issue?”

Great Excerpt, so:

  • What questions are you going to quit using?
  • What other questions do think need to be buried?

Would you like to know more about Power Questions?  Here is a really well done video overview Power Questions by Andrew Sobel:

Authors of Power Questions:

Jerold Panas & Andrew Sobel

Jerold Panas is the world’s leading consultant in philanthropy and the CEO of Jerold Panas, Linzy & Partners, the largest consulting firm in the world for advising nonprofit organizations on fundraising.  He can be reached at http://www.jeroldpanas.com

Andrew Sobel  is the leading authority on building long-term client and other professional relationships. He can be reached at http://www.andrewsobel.com

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