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Lessons from the Great American Leaders & How They Apply Now

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Measure What Needs to Be Measured

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Performance plans are action plans, not static documents. Effective performance plans must detail the specific actions leaders and employees must follow to accomplish the goals and objectives set within it. Leaders understand that without meaningful performance standards, measuring and evaluating individual performance becomes difficult if not impossible. Once the plan is implemented, meaningful performance standards allow leaders to modify and adapt their plans to actual conditions.

Leaders must use solid standards to monitor and evaluate all aspects of performance. Any measurement used should determine and create an action both on the part of the employee being evaluated and on the part of the leader performing the evaluation.

There is a natural tendency for a leader to focus his or her activities on more prominent areas that will be highlighted and spotlighted, yet every element of the performance plan must be fully addressed.

It should be noted that any standard a leader creates will direct, limit and change the behavior and performance of their employees. This is important for leaders to understand because what and how they choose to evaluate can have either a positive or negative effect on the performance of their organizational unit.

A common pitfall in establishing performance standards is overdoing them. It burdens all involved with excessive factors and controls. Leaders know that to be effective, they need to set performance standards that are relevant and meaningful. It is far better to have fewer meaningful standards than to establish many useless ones. When applied, these standards will present a true picture of the performance of their organizational unit at any given point in time. Four areas to focus on in creating meaningful performance standards are:

What to Measure

The specific elements that need to be measured will vary by organizational unit. Typically, performance standards are set around productivity and profitability. Most leaders establish performance standards by setting specific performance expectations. Examples include:

  • Progress is evaluated by the reaching of specific milestones linked to individual goals and objectives.
  • Profitability is evaluated against the budgets established for each activity.
  • Efficiency is evaluated by the resource utilization within the organizational unit.

Each organizational unit has key factors that determine their success. Leaders identify these factors as indicators of performance and look for trigger points that are early indicators of the success or failure of these factors. For instance, if a leader is managing a manufacturing unit, he or she may focus on projected orders as a key indicator of their unit’s future activities. While a production supervisor may not be interested in these future indicators, a leader looks beyond the immediate horizon to maximize the efficiency of their unit.

How to Benchmark

Once leaders know what they want to evaluate, they need to benchmark each critical measurement. This establishes degrees of confidence and reliability in their numbers. They review these statistics over a meaningful period of time to establish a benchmark of past performance in each area. The longer a leader reviews the past performance of a specific area, the higher the degree of confidence and reliability he or she establishes.

Once key performance standards are benchmarked, leaders establish “triggering events” that result in taking immediate action. Since the benchmarked statistic is the standard, a triggering event can be predetermined. This event or “flag” occurs when performance rises above or falls below a specific percentage of the benchmarked standard. This provides leaders an early warning system to proactively deal with performance problems before they get out of hand.

How Frequently to Measure

Leaders are careful not to overburden themselves with needless information. They use performance standards as a means to keep their finger on the pulse of their unit’s performance. They can easily determine the frequency for receiving reports of their unit’s performance. Some statistics are meaningful on a daily basis, some hourly, and still others only when reported over prolonged periods of time.

What Measurements Indicate

Key performance standards need to inform leaders of the overall performance of their organizational unit. Specific measurements can trigger corrective actions, while others indicate the progress of the unit against performance plan goals and objectives. Effectively utilized, solid performance standards lead and direct the leader’s actions to fine-tune his or her unit’s performance. The right balance of key standards points the way to improved overall performance and productivity.

Excerpt: Planning to Maximize Performance: Pinpoint Leadership Skill Development Training Series (Majorium Business Press, Stevens Point, WI, 2011) $ 16.95 USD

Related:

Five Critical Steps to Maximize Performance

Execution: Six Action Steps

Performance Plans Create Results and Maximizes Performance

Objectives Allow Managers to Focus on Obtaining Results

Timothy F. Bednarz, Ph.D. | Author | Publisher | Majorium Business Press
Author of Great! What Makes Leaders Great: What They Did, How They Did It and What You Can Learn From It (Finalist – 2011 Foreword Reviews‘ Book of the Year)
Linkedin | Facebook | Twitter | Web| Blog | Catalog |800.654.4935 | 715.342.1018

Copyright © 2013 Timothy F. Bednarz, All Rights Reserved

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If You Want to Lead… Innovate!

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Bill Gates, former CEO of Microsoft  Photo by Win McNamee/Getty Images)

Bill Gates, former CEO of Microsoft
Photo by Win McNamee/Getty Images)

“You keep innovating if you want to keep leading… Exceptional leaders cultivate the Merlin-like habit of acting in the present moment as ambassadors of a radically different future, in order to imbue their organizations with a breakthrough vision of what it is possible to achieve.” [1] Within the context of this chapter, the breadth and scope of innovations introduced in multiple areas demonstrates the great leaders’ ability to lead within their respective industries.

Bill Gates (Microsoft) asserted, “Research, I think, is the lifeblood of innovation in the economy. But big companies always have a problem taking their research and making sure it’s focused on the problems that count. And even if you make a breakthrough, do you really get that research into the products that you ship? In our industry, companies like Xerox or AT&T are famous not just for doing fairly good research, but in many cases not ever being able to bring it to the marketplace. So when we started Microsoft Research, we said, let’s make sure we’re the best case ever not only of great researchers, but getting that into products. And so events like this — where it’s almost like a festival — you come and see all the neat research advances. That’s one of the ways we make sure these groups are working like a team.” [2]

Innovation is a time-intensive process, which normally doesn’t fit into neat time blocks. Amazon is a noteworthy example. Jeff Bezos explains, “As far as time-frame is concerned, innovations at Amazon usually take 5-7 years before they make any meaningful impact on the company’s economic situation. This is a big risk and is offset in a number of ways. One is to minimize the costs of experiments. Amazon has a web lab just for that purpose, which undertakes these experiments on a massive scale, collects real usage data on what works best, and is constantly trying to push the costs of these experiments down. Again, taking a long-term view, it helps when building innovation on things that won’t change in the next 5-10 years. For Amazon, these are basic customer preferences, such as: choice, low prices, and fast.

There are three more core-attitudes, which I think have a big impact on the way innovation takes shape at Amazon. One is, to always ask the question ‘why not?’”… The biggest mistakes at Amazon come from not doing something, rather than taking the risk. And asking ‘why not?’ instead of ‘why should we do it?’ opens up a whole other universe of possibilities. Similarly, there are lot of difficult decisions that Amazon has had to make over the years, such as allowing reviews on their site. The vital question there was ’what is better for the customer?’ Last, but not least… ‘Be Stubborn on the vision, and flexible on the details.’ ” [3]

Andy Grove (Intel) made the following observations. “ ‘It is not something where you have a crystal ball to start with and you guess right,’ he emphasizes. ‘You constantly have to guide your efforts and add more ingredients – effort, money, people, undertakings, and alliances. It is partly anticipation, and partly turning that anticipation into a reality. When you have a three-to-four-year development cycle and factories that take three to four years to build and ramp up – and you add a year or two where you are making decisions about what the information technology world will want five years into the future, part of it is learned guesswork. You do your own guesswork – and then you work like hell to make your guesswork become reality… And you obviously need a whole industry to support some of this, so you turn to evangelism. And to make sure your evangelism carries weight, you invest in some [small start-up] companies to make sure you are taken seriously.” [4]

As the examples cited within this chapter clearly illustrate, innovation takes many forms. They include concept, product, process, practice and application. Each is succinctly fueled by the practice of “ruthless efficiency,” designed to improve the customer’s experience by increasing quality, efficiency and driving down costs. Most innovations were the direct result and consequence of a series of continuous improvements, sprinkled with several “Eureka!” moments. Leopold Mannes, co-developer of Kodak’s Kodachrome photographic film stated, “Invention is primarily the art of getting out of trouble.” [5] Fueled by necessity, the great leaders pioneered innovation to solve problems to leverage available opportunities, and to achieve a competitive advantage.

  1. Meyers William, Conscience in a Cup of Coffee (U.S. News, October 31, 2005)
  2.  A One-on-One Interview with Bill Gates (CNN.com, March 1, 2002)
  3.  van Wyitck Vincent, Amazon’s Jeff Bezos on Strategy & Innovation (not Kindle-related!) (Tech IT Easy, November 20, 2007)
  4.  Sheridan John H., 1997 Technology Leader of the Year Andy Grove: Building an Information Age Legacy (Industry Week, April 19-21, 2010)
  5. Brayer Elizabeth, George Eastman. A Biography (University of Rochester Press, Rochester, NY, 2006) p. 224

Related:

Building Employee Support Requires Interactive Leadership

Eight Ways Others Evaluate Trust in Leaders

Five Strategies to Build Trust

The Concept of Change Means Leaders Must Communicate

For Additional Information the Author Recommends the Following Books:

Improving Communication in the Workplace: Pinpoint Leadership Skill Development Training Series

Leadership Roles & Responsibilities: Leadership Skill Development Training Series

Improving Workplace Interaction: Pinpoint Leadership Skill Development Training Series

Negative Employee Behaviors: Pinpoint Leadership Skill Development Training Series

The Impact of Change on Individuals: Pinpoint Leadership Skill Development Training Series

Timothy F. Bednarz, Ph.D. | Author | Publisher | Majorium Business Press
Author of Great! What Makes Leaders Great: What They Did, How They Did It and What You Can Learn From It (Finalist – 2011 Foreword Reviews‘ Book of the Year)
Linkedin | Facebook | Twitter | Web| Blog | Catalog |800.654.4935 | 715.342.1018

Copyright © 2013 Timothy F. Bednarz, All Rights Reserved

Eight Leadership Principles You Can’t Ignore

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Effective leadership is the result of acting according to reliable practices as well as intuition. Managers as leaders use sound management and leadership principles to guide and direct their actions and activities. They know where they want to go and what specifically needs to be done in order to get there, and that each particular step needs to be carefully considered as to the consequences associated with specific actions and decisions.

There is a difference between managers who lead and those who supervise. Leaders use sound management and leadership principles as tools to help them achieve their goals and objectives. More traditional managers often attempt to use their authority to protect their “turfs” with little or no regard for the people they are responsible for.

Managers as leaders are driven by a vision of what they want to accomplish. They always have their “eye on the prize” and know just where they want to go and why. They work through their employees using their own passion as a strong motivational tool, demonstrating the possibilities of what all can achieve together.

Managers as successful leaders must be enthusiastic and positive in all of their actions and interactions. This is demonstrated by the use of the following key leadership principles:

Related: Plans Must Be Rooted in Past Performance

Planning

Planning has suffered with the inception of many 90s management fads. Many in the now defunct dot-com companies proclaimed that planning was an obsolete management function. The accepted view was that circumstances change too quickly to be effectively planned for. They fully believed that it was better to be reactive rather than proactive. The failure of this theory was evident in the bursting of the dot-com bubble.

Good leaders know their success is founded on solid management principles—including planning. They also understand that things are always in flux and changing, and they plan accordingly to anticipate what must be done to accommodate particular changes. They take the necessary time to frequently modify their plans to bring them into line with actual conditions.

Organization

Managers as leaders must understand how to apply and use organizational matrixes to gauge and measure their personal time, efforts and resources as well as those of their employees. Matrixes allow for simultaneous monitoring of various organizational activities across multiple levels.

Effective organizational management provides leaders strategic control over their areas of workplace responsibility. One of their major roles is to manage employees and make certain they are producing ongoing results. Managers are also responsible for the various behaviors and outcomes of the people they manage. This can only be accomplished through effective organizational practices and methods.

Related: Linking Structure to Action

Stimulation

Managers who lead must be exceptional motivators. They must learn how to effectively use their passions and visions to attract and motivate others. But as motivation is not enough, they must also use ideas, conceptions and actions to stimulate their employees’ thinking and stretch their capabilities. They must make it a point to understand the individuality of everyone they manage and apply different techniques to stimulate and motivate each in the most effective manner.

Related: Ten Steps You Need to Take to Effectively Sell Your Ideas

Information

Leaders are always mindful of the power that information has on their personal ability to perform effectively. Today, too many managers are awash in information, while starving for expertise.

Leaders must be able to distill the vast flow of information into usable metrics and data, which makes it easier to understand what is happening within their organizations. Detailed informational input should actively support all key management metrics and help keep ongoing tabs on every aspect of employees’ important activities. Accessing particular information only when it is required without excessive daily review allows them the freedom to manage effectively without being bogged down by information overload.

Leaders must also understand the need for the free-flow of information between superiors, associates and employees. This allows for effective management and communication on all levels.

Time Management

Time is a limited resource, and managers must be able to use it wisely. They need to employ time-saving techniques such as delegation and empowerment to free themselves from tasks and assignments others can just as easily see to. They should look at every activity to determine whether or not it moves them closer to their goals and vision. Activities that do not fit this criterion should either be delegated or dispensed with.

Related: You Keep Innovating if You Want to Keep Leading

Idea Development

To be competitive and gain an organizational advantage, managers as leaders must create and develop new ideas and concepts. They should always be looking for new and better approaches and for ways to accomplish more with less. A good way to identify and implement ideas, methods or concepts is to brainstorm with associates or employees to determine ways to gain even the smallest marketplace advantage.

Value

Managers as leaders must understand that maintaining and nurturing customer relationships has considerable organizational value. As nothing can be taken for granted, repeatedly meeting and exceeding customers’ expectations becomes a top priority. When customer satisfaction is achieved, value is delivered. Managers must incorporate the fact that there will be no compromise on value into their vision statement. Satisfied customers make their professional existence possible.

Related: Do You Have the Talent to Execute Get Things Done?

Efficiency

Effective managers know it takes little extra time and effort to do things right the first time, while carelessness wastes a great deal of time and valuable resources. All organizations have limited resources and managers must work hard to maximize return on investments with those assigned to them. They must make it a point to always look for ways to increase their organizational efficiency, productivity and profitability.

Excerpt: Leadership: Pinpoint Management Skill Development Training Series (Majorium Business Press, Stevens Point, WI 2011) $ 16.95 USD

 

Timothy F. Bednarz, Ph.D. | Author | Publisher | Majorium Business Press
Author of Great! What Makes Leaders Great: What They Did, How They Did It and What You Can Learn From It (Finalist – 2011 Foreward Reviews‘ Book of the Year)
Linkedin | Facebook | Twitter | Web| Blog | Catalog |800.654.4935 | 715.342.1018

Copyright © 2012 Timothy F. Bednarz, All Rights Reserved

Measure What Needs to Be Measured

with 8 comments

Performance plans are action plans, not static documents. Effective performance plans must detail the specific actions leaders and employees must follow to accomplish the goals and objectives set within it. Leaders understand that without meaningful performance standards, measuring and evaluating individual performance becomes difficult if not impossible. Once the plan is implemented, meaningful performance standards allow leaders to modify and adapt their plans to actual conditions.

Leaders must use solid standards to monitor and evaluate all aspects of performance. Any measurement used should determine and create an action both on the part of the employee being evaluated and on the part of the leader performing the evaluation.

There is a natural tendency for a leader to focus his or her activities on more prominent areas that will be highlighted and spotlighted, yet every element of the performance plan must be fully addressed.

It should be noted that any standard a leader creates will direct, limit and change the behavior and performance of their employees. This is important for leaders to understand because what and how they choose to evaluate can have either a positive or negative effect on the performance of their organizational unit.

A common pitfall in establishing performance standards is overdoing them. It burdens all involved with excessive factors and controls. Leaders know that to be effective, they need to set performance standards that are relevant and meaningful. It is far better to have fewer meaningful standards than to establish many useless ones. When applied, these standards will present a true picture of the performance of their organizational unit at any given point in time. Four areas to focus on in creating meaningful performance standards are:

What to Measure

The specific elements that need to be measured will vary by organizational unit. Typically, performance standards are set around productivity and profitability. Most leaders establish performance standards by setting specific performance expectations. Examples include:

  • Progress is evaluated by the reaching of specific milestones linked to individual goals and objectives.
  • Profitability is evaluated against the budgets established for each activity.
  • Efficiency is evaluated by the resource utilization within the organizational unit.

Each organizational unit has key factors that determine their success. Leaders identify these factors as indicators of performance and look for trigger points that are early indicators of the success or failure of these factors. For instance, if a leader is managing a manufacturing unit, he or she may focus on projected orders as a key indicator of their unit’s future activities. While a production supervisor may not be interested in these future indicators, a leader looks beyond the immediate horizon to maximize the efficiency of their unit.

How to Benchmark

Once leaders know what they want to evaluate, they need to benchmark each critical measurement. This establishes degrees of confidence and reliability in their numbers. They review these statistics over a meaningful period of time to establish a benchmark of past performance in each area. The longer a leader reviews the past performance of a specific area, the higher the degree of confidence and reliability he or she establishes.

Once key performance standards are benchmarked, leaders establish “triggering events” that result in taking immediate action. Since the benchmarked statistic is the standard, a triggering event can be predetermined. This event or “flag” occurs when performance rises above or falls below a specific percentage of the benchmarked standard. This provides leaders an early warning system to proactively deal with performance problems before they get out of hand.

How Frequently to Measure

Leaders are careful not to overburden themselves with needless information. They use performance standards as a means to keep their finger on the pulse of their unit’s performance. They can easily determine the frequency for receiving reports of their unit’s performance. Some statistics are meaningful on a daily basis, some hourly, and still others only when reported over prolonged periods of time.

What Measurements Indicate

Key performance standards need to inform leaders of the overall performance of their organizational unit. Specific measurements can trigger corrective actions, while others indicate the progress of the unit against performance plan goals and objectives. Effectively utilized, solid performance standards lead and direct the leader’s actions to fine-tune his or her unit’s performance. The right balance of key standards points the way to improved overall performance and productivity.

Excerpt: Planning to Maximize Performance: Pinpoint Leadership Skill Development Training Series (Majorium Business Press, Stevens Point, WI, 2011) $ 16.95 USD

If you would like to learn more about performance planning techniques, refer to Planning to Maximize Performance: Pinpoint Leadership Skill Development Training Series. This training skill-pack features eight key interrelated concepts, each with their own discussion points and training activity. It is ideal as an informal training tool for coaching or personal development. It can also be used as a handbook and guide for group training discussions. Click here to learn more.

Use promo code XC9OTF47 to receive 10% discount on this book.
________________________________________________________________________
Timothy F. Bednarz, Ph.D. | Author | Publisher | Majorium Business Press
Author of Great! What Makes Leaders Great: What They Did, How They Did It and What You Can Learn From It (Finalist – 2011 Foreward Reviews‘ Book of the Year)
Linkedin | Facebook | Twitter | Web | Blog | Catalog |800.654.4935 | 715.342.1018

Copyright © 2012 Timothy F. Bednarz, All Rights Reserved

You Keep Innovating if You Want to Keep Leading

with 5 comments

“You keep innovating if you want to keep leading… Exceptional leaders cultivate the Merlin-like habit of acting in the present moment as ambassadors of a radically different future, in order to imbue their organizations with a breakthrough vision of what it is possible to achieve.” [1] Within the context of this chapter, the breadth and scope of innovations introduced in multiple areas demonstrates the great leaders’ ability to lead within their respective industries.

Bill Gates (Microsoft) asserted, “Research, I think, is the lifeblood of innovation in the economy. But big companies always have a problem taking their research and making sure it’s focused on the problems that count. And even if you make a breakthrough, do you really get that research into the products that you ship? In our industry, companies like Xerox or AT&T are famous not just for doing fairly good research, but in many cases not ever being able to bring it to the marketplace. So when we started Microsoft Research, we said, let’s make sure we’re the best case ever not only of great researchers, but getting that into products. And so events like this — where it’s almost like a festival — you come and see all the neat research advances. That’s one of the ways we make sure these groups are working like a team.” [2]

Innovation is a time-intensive process, which normally doesn’t fit into neat time blocks. Amazon is a noteworthy example. Jeff Bezos explains, “As far as time-frame is concerned, innovations at Amazon usually take 5-7 years before they make any meaningful impact on the company’s economic situation. This is a big risk and is offset in a number of ways. One is to minimize the costs of experiments. Amazon has a web lab just for that purpose, which undertakes these experiments on a massive scale, collects real usage data on what works best, and is constantly trying to push the costs of these experiments down. Again, taking a long-term view, it helps when building innovation on things that won’t change in the next 5-10 years. For Amazon, these are basic customer preferences, such as: choice, low prices, and fast.

There are three more core-attitudes, which I think have a big impact on the way innovation takes shape at Amazon. One is, to always ask the question ‘why not?’”… The biggest mistakes at Amazon come from not doing something, rather than taking the risk. And asking ‘why not?’ instead of ‘why should we do it?’ opens up a whole other universe of possibilities. Similarly, there are lot of difficult decisions that Amazon has had to make over the years, such as allowing reviews on their site. The vital question there was ’what is better for the customer?’ Last, but not least… ‘Be Stubborn on the vision, and flexible on the details.’ ” [3]

Andy Grove (Intel) made the following observations. “ ‘It is not something where you have a crystal ball to start with and you guess right,’ he emphasizes. ‘You constantly have to guide your efforts and add more ingredients – effort, money, people, undertakings, and alliances. It is partly anticipation, and partly turning that anticipation into a reality. When you have a three-to-four-year development cycle and factories that take three to four years to build and ramp up – and you add a year or two where you are making decisions about what the information technology world will want five years into the future, part of it is learned guesswork. You do your own guesswork – and then you work like hell to make your guesswork become reality… And you obviously need a whole industry to support some of this, so you turn to evangelism. And to make sure your evangelism carries weight, you invest in some [small start-up] companies to make sure you are taken seriously.” [4]

As the examples cited within this chapter clearly illustrate, innovation takes many forms. They include concept, product, process, practice and application. Each is succinctly fueled by the practice of “ruthless efficiency,” designed to improve the customer’s experience by increasing quality, efficiency and driving down costs. Most innovations were the direct result and consequence of a series of continuous improvements, sprinkled with several “Eureka!” moments. Leopold Mannes, co-developer of Kodak’s Kodachrome photographic film stated, “Invention is primarily the art of getting out of trouble.” [5] Fueled by necessity, the great leaders pioneered innovation to solve problems to leverage available opportunities, and to achieve a competitive advantage.

[1]  Meyers William, Conscience in a Cup of Coffee (U.S. News, October 31, 2005)

[2]  A One-on-One Interview with Bill Gates (CNN.com, March 1, 2002)

[3]  van Wyitck Vincent, Amazon’s Jeff Bezos on Strategy & Innovation (not Kindle-related!) (Tech IT Easy, November 20, 2007)

[4]  Sheridan John H., 1997 Technology Leader of the Year Andy Grove: Building an Information Age Legacy (Industry Week, April 19-21, 2010)

[5]  Brayer Elizabeth, George Eastman. A Biography (University of Rochester Press, Rochester, NY, 2006) p. 224

Excerpt: Great! What Makes Leaders Great: What They Did, How They Did It and What You Can Learn From It (Majorium Business Press, 2011)

If you would like to learn more about the innovation and continuous improvement exhibited by the great American leaders through their own inspiring words and stories, refer to Great! What Makes Leaders Great: What They Did, How They Did It and What You Can Learn From It. It illustrates how great leaders built great companies, and how you can apply the strategies, concepts and techniques that they pioneered to improve your own leadership skills. Click here to learn more.

Copyright © 2011 Timothy F. Bednarz, Ph.D. All rights reserved.

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