Performance Controller

"However beautiful the strategy, you should occasionally look at the results"...WC Print

A popular myth in business and life is that it is only money that motivates. Consider why you go to learn to play a piano or join a speech club and why you find so many professionals doing more creatively work for others for free when their employer pays them for the same type of work.

End user tools such as Gmail plus backend server tools like Lynx and Apache are some of the world’s highest used technologies. These are examples of things that would have never happened were they not motivated to be created by something other than money.

It may be true that the more money works to get better results when the task being done involves mechanical skills based on a set of rules. Then the more you scale up the pay as the  reward the more likelihood there is for a better result.

However MIT and other studies conclusively find that once a task calls from even rudimentary cognitive skills, the results most often get worse when you use more pay as the incentive to get more results. Profit motive then gets unhinged from purpose and bad things start to happen.

This is discussed in this Royal Society for encouragement of Arts, Manufactures and Commerce (RSA) Animate Video – “Drive: The surprising truth about what motivates us”

This calls into question that if you reward something you get more of the behavior you want and if you punish something you get less.

The video that is has had extensive viewing since it was published on you Tube in April 2010.

This lively RSA Animate, adapted from Dan Pink’s talk at the RSA, illustrates the hidden truths behind what really motivates us at home and the workplace. www.theRSA.org

It bears no more comment except to say it may the best 10 minutes of essential information you can get to help you understand and pass your next creative leadership challenge.

Here also is the live version of Dan Pink’s RSA talk if you prefer to see him in action.

I wonder what others think?

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In the wake of the Greek financial crisis in Europe, world stock markets, including the beleaguered US ones, last week had downslides. Late in the week Australian markets also dipped but they are all now bouncing back.

A mate in the US I spoke to this morning said after yesterday trading,

“I need another rally to recapture losses from last week.”

As with many like me we have been concerned for our retirement and investment plans. Even short-lived shocks make us nervous as regained confidence in the Australian market has been supported by a strong currency with strong trading ties with Asia.

To help understand this more I got a timely email this morning from my financial advisors, Mathews Steer. It carried a tag line “Where do I go from here” and went on to say:

Last week the US and Australia saw some extraordinary market movement for asset classes across the board.

A weaker Asian market during Thursday (thanks to China being down 4%) set the tone for European markets to be weaker when they opened on Friday. Along with continued concerns over the protests in Greece put additional pressure on the Euro, which fell to levels last seen at the beginning of 2009.

Investors had potentially been looking for some additional information in relation to debt default risks in Greece and the possible contagion in to other European countries from the scheduled meeting of the European Central Bank, but this didn’t eventuate, and uncertainty weighed upon the market. That said, the Greek parliament voted in favour of the austerity measures from the European Union (EU) and International Monetary Fund on Thursday, and there will be more news in the coming weeks providing further clarity.

This more negative tone flowed into US markets last week, even though no new fundamental news came to light. The negative sentiment was vastly exacerbated after the market fell abruptly in Thursday afternoon trade. Speculation that a trading error occurred saw a sudden drop in the market triggered a barrage of program stop-loss selling, which saw the S&P 500 index down 8.5% at one stage. Buying quickly returned but the market didn’t have enough time to pull back all the losses , eventually ending down 3.2% for the day. The sell-off also spurred safe haven buying in gold, US treasuries and the US dollar.

The reaction last week did spark panic and uncertainty, and with the memories from two years ago still fresh in investors’ minds, many people may be asking whether we’re going to have another massive sell-off. But economies are healing from the aftermath of the economic crisis. They’re in a much better position than they were, and markets have reflected this to a large extent, however, there is still much healing to be done and there will be bumps along the way, economies are well traversed on that recovery road.

The Australian market opened sharply lower last Friday but by close of trade it had progressively recovered some of the drop and has continued to recover this morning.

Markets, remain highly sensitive to both good and bad news, which will cause significant short term volatility, such as what we are seeing at the moment. Investors like to have a degree of certainty around issues and when that is not provided, fear can dominate investment decisions.

But an investment strategy should always focus on the longer term goals rather than reacting to short term market noise, which has been exacerbated by panic and the events over the last few days and needs to be put in context of the improving bigger picture.

If you have any questions about this email or your personal situation please contact Geoff Steer or Anthony Flapper on 03 9325 6300

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About

Matthews Steer say when it comes to business, owners and managers face significant challenges. Underpinning those challenges are 4 mindsets that often need work …

• the lack of peace of mind around their business
• the lack of confidence to grow their businesses
• the lack of confidence of their banker which stifles growth due to lack of access to capital
• an inability to translate business success into personal wealth

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In my CFO Network Group recently there was a great discussion that gave so many useful ideas and insights about cutting costs.

 There a question was posed by Riyaz Lalani, Business Development Manager, BC at Canadian Traffic Services Group Ltd

Reducing costs? Why is there hesitation to make a change when it impacts the bottom line?

Here is my two bob’s worth:

Reducing costs is one thing which may just mean tightening the belt or asking a supplier to reduce. That is called “running the business, which should always include knowing the potential value of low hanging fruit”.

Change is another thing that is more difficult to make even though change itself is a constant in the day-to-day world of business that must be handled. So combining the two in a continuous improvement culture with transparent feedback support and operational measures in place can let everyone work out how to keep up as a way of life. A great business axiom too is “Plan=Success No Plan=failure”. So making cost cuts does need some thought.

With suppliers and customers included that can take care of a lot of issues and your business will grow organically and often at pace. Efficiency cost reductions too fall into in balance so risk issues and relationships don’t burn you later on.

Making step change for all the same reasons as many people have stated, is actually much more difficult without taking a step. And that takes commitment, resources and often a catalyst to bring it about.

When integrating businesses cultures and/or changing software platforms to re-focus business processes, you will most often see strategic growth as the aim.  Then culling redundant processes will also deliver cost reductions as one of the benefits.

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As the downturns kicked in last year for a while it seemed the music may stop. But then someone said ” Play it again, Sam?”. In our company this has seen some rapid growth in e-demand for our services. This is especially so in support area as customers had deferred investments in favor of making things work a bit longer while things were tough.

As one who literally works daily in 3 continents and in as many languages, I am a fan of the idea that I can collaborative simply with pervasive communicational tools. These days we can also all use then at an easily affordable cost.

For me and my colleagues was are able to do this using our versions of Beam Me Up Scotty communicator to keep in touch on a far wider surface than the conventional quarter mile of traditional business. Hence as the demand has changed we are always in touch and  contactable with this capability we now continue to service long standing customers often without the need to even leave home.

For 15 years and more we have been able to connect in some way like this. Both informally and formally alliances and colleagues do business this way and more recently we also do it directly with customers.

Even as they move around when I turn on our computers each morning I have maintained a strong presence that has kept me in touch personally with key contacts and customers on a daily basis.  Daily habits are also subliminal as people come and go online with an in touch awareness that keeps us connected. And once trust is established we are generally all happy to be available to each other at any old time.

But of course the face to face activity will never be totally replaced. For example selling  is a contact process that requires continual reinforcement of trust, and capability. These  credibility assurances are vital to maintain ongoing connections. The ability to listen and anticipate needs is the real key that provides the quality in the dynamics of business. This cannot be done without physical presence so salesman and supply chain players must continue waking around. And without that best laid plans for automated process supply will also fail as competitors exploit any gaps that appear and move in on your patch.

That is why, even though systems give us great contact presence online now, we must never forget to call in on our suppliers and customers from time to time.

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Before heading home to Australia from Bangkok in late December, I went to a pool side party in an apartment building. This party was for the management and the staff, hosted by a long term tenant to say thank you.

When in Bangkok I stay at Mahajak Apartments in the very livable and popular downtown area of Sukhumvit. We have had this apartment for many years, after finding hotels impersonal and transient. For our business we have had similar sets up in Singapore, Indonesia and London, but this one in Bangkok is quite special.

Although Bangkok is not my home, I feel like it is as I come and go. Our office at Central World is a few minutes away and our customers also see me as relaxed to continue to be around for them.

Regardless of traffic and the bustle of this very large city, when I arrive, it is a most pleasant experience. It never lets me down as I am greeted by a “Sawasdee”, with welcoming smiles and an attitude that nothing is ever too much trouble.

The building owners are a family, who also own and operate Mahajak Group. This is a significant well established group with a reputation for high quality. Built around automotive nuts and bolts, these days it has diversity that also specializes in such things as quality air-conditioning, home automation, and audio and entertainment equipment and more. The families live in the building themselves during the week to run their operations in the building adjacent. So like me it is their second home, so it is important it works for them too.

The building is modern looking although it is about 20 years old. It has a welcoming feel when you walk into the reception but even before that the security staff make you welcome.

Despite being in one of the busiest and vibrant areas in Bangkok, the building itself is situated in a quiet and relaxing off street area which fits into the landscape that over looks the city. In-house staff is employed to manage maintenance but they are unlike others who just take care of the infrastructure. At Mahajak Apartments they have a proactive and in touch approach to attending to tenants needs, no matter how big or how small.

Khun Angkana, who is one of the principals in the Mahajak family, takes an active part in the day to day operations. Being both a customer and provider of her business, she certainly understands first hand customer’s needs; she is also extremely well liked and highly respected by everyone. She is fluent in English and also in Japanese, which she studied at Chulalongkorn University. She can be often seen working away at her desk as she translates some documents to or from Japanese as a sideline and hobby work for a former employer.

In this prominent sought after location in the Sukhiumvit area with a large ex-pat business population her track record is unique, with so many long term residents. With her team, their attention to detail to make everyone feel at home is what makes the difference to keep the tenancy rate so high. 

But during last year as things got tight with the downturn in business and tourist trade, I noticed a change. One day, with her staff, they were busily arranging short term accommodation for someone new. Later I asked her about her approach for handling the mix of long stay residents and short visitors. She told me how full service short stay people were now filling the gaps left by long termers who had vacated.

Short term guests were also happy to pay the better rate than hotels or a mainstream serviced apartment.  This approach, she said, was yielding well as people sought home style accommodation for periods from one to four weeks. And with such a good location she said she could also be selective to ensure long stay people were not impacted.

The initial approaches were from people needing family accommodation to visit the nearby world class Bumrungrad Hospital. Many come there from all over the world for hard to get and affordable treatment that is more out of reach in the home countries. Mahajak being so convenient is a bonus.

So now the Mahajak Apartment focus has shifted to also be good at providing this much needed accommodation service. The upside too the atmosphere now has more a light hearted feel as short term people engaged in neighborly exchanges with long-people like me.

On one occasion, Angkana’s husband confided to me that even though the percentage of short stay was low, it had made the difference and showed them that alternative markets were an option, even when facing adversity.

Even though property management is not really our core business”. he said, “this model and this experience has opened our minds for expansion as the market returns”.

If you are planning a short stay,

Check it out at http://www.mahajak.com/apartment/index.htm

Or just contact them by email for more information.

Quick Poll:

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Defining the workplace now sees many of us having had our lives so infiltrated completely without even noticing it. And it has also moved into those natural gaps in the day that allow us to maintain our sense of reality and balance. Like blinking gives the eyes a rest, those gaps give us natural respite.

Hence as our workplace has become more intrusive it is now so very different to “once upon a time”. Conventional wisdom once suggested we should manage stress in the workplace by determining; the boundaries between lower limits of too little to do and few rewards and the punishing regime of too much to do and too little time to enjoy the rewards. Both extremes provoke de-motivating stress.

Once upon a time… yes it does sound like a fairy tale… there was a man who caught the bus to his office every day. He would get up at a respectable hour and start the day with a run in his locale, nodding to the other regulars who also made time for exercise routines. It was a time when he would actually sift through things in his mind that he was expecting to tackled that day. “Sink time “, a colleague used to refer to it as. That is a time when bad ideas would sink so good ideas can surface and when creative responses to difficult situations might emerge.

The walk from the bus stop to the office was the most valuable as the days focus started to become concentrated” This period of sink time” was when could finalize his strategy for the work day.

These days with far less structure and routine available in our workplace to us, we still need to find the time sink time for some natural ways to allow the junk to fall and the good stuff to rise, so we can manage our lives to have one.

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Nada Mills is a retired clinical psychologist enjoying living in Perth Western Australia

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In the competency stakes there are several stages to achieving mastery. To understand this is to understand your value and what you must do to maintain it. As you become more capable the ground will likely shift as you realize what it means.

Consider the cobbler starting as an apprentice. When he begins his indentures, even the smallest task needs someone to teach him the skills. He is understandably quite unaware of how to even approach competency, let alone what it may look like.

You might say he is unconsciously incompetent. But his next stage, not surprisingly, is being conscious of his incompetence as he accepts, on faith, what his mentor and teachers say he still needs to know.

Once he develops skills he moves to an unconscious state once again as he makes it. But it still takes time and effort for it to sink in that he is is actually there. Consciousness does not return until the next emancipating stage clicks in, which may well be the point that sees him graduating as a qualified craftsman.

But what of the final stage to achieve mastery?

Read more…

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When you start a new business or new product there’s a lot to consider. Not only must you have a good product and story to go with it, you must build credible and persistent processes to maintain it and keep out your competitors.

In the early stages process are intense and costly. As you seek out early adopters to invest in your products to being them to market the first sales will cost more. You invest not only in product and capability but also in promotion. But the secret of success is to reach the breakeven point quickly.

At some point in your plan you must see the critical mass needed to reach sustainable levels of profitability and where you stop investing more money. You will also want to see sales able to come in more freely as word of mouth and repeat buying habits replaced your high cost of marketing and promotional effort.

Getting customers and keeping requires you earn the right  with a good reputation with and be known to delver sustainable value with reliable service. And once you are established you must keep and ever more vigilant stay ahead in the game as competitors try leveraging and copying your work.

As you make outlay on skills, systems, machines and a team it is it is like making a garden of food. Planting the seeds and making them grow to mature is only  part of the investment. A great deal more effort is also required to get the product to market. That needs good processes for placement to sell and deliver new and repeat business that works for your customers.

Then as they learn about you and of your value and how to buy from you, your aim is to then have then impressed to want to form habits and continue to come back.

Here are some of marketing plan elements most experts say you need to consider to make all that happen: 

• Word spreads where your success and reputation reach other prospects.
• Repeatable process occurs where your work for one can be used to help another.
• Budgets exists where there is more than one player with money and a need to solve a problem.
• Barriers exist so it is hard for copycats to steal a share share of your business & to lower prices.
• Prices rise as reputation increases and so you can charge more, not less.

In a services and many small business a large percentage don’t measure up. Banks also worry about these aspects when they get business plans that ask them for funding.

Have a think about how you business plan looks. If it meets these criteria you are on a winner. But if it is not working as you would like or you have some doubts, get some advice to help you understand how make it happen.

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On all new potential business engagements, one of the biggest blockers to communication is the ease of access to information.

A prospect will always baulk at giving confidential information, even when it is vital to allow a vendor or consultant to provide a solution. Time and valuable communication are often lost and many times even the opporunity when the simple solution may be to just sign a non disclosure agreement so you can keep talking.

In most cases when I suggest this things start to move along. But then there is the issue of whose NDA form do we use. As people head for the legal department it has the poterntial to stall again. So to make it easy,  I offer ours and often times it is enough and does the job well.

There are any number of forms around for this  For example  http://www.ndasforfree.com/ has some good formats to check for various scenarios Here is one we use that we find has quite simple language and works for us. Please feel free to give it a try or give me some feedback.

Read more…

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With my wife Margaret, in June this  year, we visited the Bangkok chapter of Power Talk International . If you have never heard of Power Talk International you may be forgiven. To put it in context, in 1970 the Apollo 13-astronauts took with them three of its formerly named and long time established Toast Mistress Club seals to leave on the moon.

Power Talk, like so many others clubs of its kind, recommends public speaking as a must  for anyone in business, or who has anything to do with communication and influencing people. But even if you are not so inclined, being able to face the fear of speaking in public is  one of the best personal confidence and performance enhancing skills you ever can have.

As a past member from Australia, Margaret had been warmly invited to visit and give a talk. The regular 6.00 – 8.00pm. 1st and 3rd Wednesday of each month meeting was at Goethe Institute , Bangkok.

In her talk she spoke about her experience growing up in the grape growing district of Mildura in Australia during the 1950′s. This region was an area that had been settled by a soldier settlement scheme. Her father, Bill Broes was a WW2 veteran, who will be 90 on 24th this August 2009, had bought up a quota. This was also at a time when Australia was still a developing nation, so it was an interesting time to look back now.

Here are some photos we took of the club and some speakers that I have set to some music in a video as a memento.

Read more…

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In a context of  understanding the next generation of performance management thinking, to overcome behavioral change barriers using social networks, a recent Wikinomics debate on relationship limits got my interest.

This debate asks the question:

If its true our neocortex has a finite limit to have only approximately 150 meaningful relationships, then what is social networking achieving? Read more…

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Performance management generally focuses on organizations and improvement and needs serious experience and  focus. But here is something that places youth in the chair. The question is, with so called YGEN attitudes today, how can anyone seriously suggest development can be done by young people?

Well Clare Hanbury does and this is what she says:

With our help, young people, can help solve society’s health & social justice issues,

We are now living in an amazing transitional time with a generation with new ideas and an extraordinary ability to multi task. These can doers are trail blazers with a disregard for expertise and a heightened sense of personal power. They  believe theirs is the only way and they are ready to do the work

To get results we must join youth where they abd asked how close they are to the problems they are trying to solve.

In this talk Clare  makes compelling points with real life examples that give young people the power of the pen and encourages them with respect and connected listening to keep them close and involved in getting solutions. Here is the link to her talk.

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With communication in web mode much more, is body language changing or becoming less important?

Body language as we know it, forms the major part of all effective communication. A test is, we rarely close a significant deal or change something complex as a team without at least one or two face to face meetings.

In Asia, as with many other parts, where English is a second language, I find to listen by also watching body language  brings greater success. When I fail to do this or I’m ambiguous with mine, sadly I am misunderstood and fail miserably. I found this too with raising my kids.

With so  many of us are now working and influencing things remotely, the opportunity for real face time is less practical. I am interested in views and experiences of people who can still remain effective and what actually works for them now?

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This man is brilliant at making a point that can grab attention and motivate others to understand their value.

In our company, as consulting advisors charging a fee, understanding our market and those of our customers is vital.

To help keep us on track Seth Godin and others like him are now playing an active role every day as our advisers in our RSS feeds.

Read more…

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North Korea is keeping the heat up around Asia,

Myanmar is clarifying it’s diplomatic standing upon Aung San Suu Kyi.

And maybe we can have a chance to meet Iran’s first lady after the June election

What these events share in common is the question “Who’s going be the leader?”

For interest, I wondered what similarities these CEO’s have with leaders in business and what such people need to reach that position in their working career.

Read more…

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