Tuesday 16 December 2014

Choosing the right competitive strategy


ciChange


Competitive strategies


There are lots of theories on Competitive Strategies. Possibly the best known are Michael Porter’s in 1985 in his book "Competitive Advantage: Creating and Sustaining Superior Performance."

Porter identified generic strategies "Cost Leadership" (no frills), "Differentiation" (creating uniquely desirable products and services) and "Focus" (offering a specialized service in a niche market).

The counter-argument to this idea of focus on price (Lidl) or quality (M&S) is the increasing demand from customers to do both “..Good food costs less at Sainsbury’s..”

The challenge is: Can you be both low cost and high quality without trade-off? Some argue to be “stuck in the middle” is the worst scenario, others that “ticking all the boxes” is the best.

This is interesting because choosing the right strategy for your organisation is important. As a Commonwealth Games triathlete my experience is that you need to balance swim, bike and run to achieve success. Excellence in one at the expense of the others will be sub-optimal. I believe the same is true in business and so the need to manage the trade-off is essential. This leads me to Apple and another argument about Competitive Strategies.

Authors Michael Treacy and Fred Wiersma describe three generic competitive strategies, or value disciplines: operational excellence, customer intimacy and product leadership. These are described in their book, The Discipline of Market Leaders (1997).

I would argue that Apple have great products (ipad, iphone,etc.) and are examples of Product leadership and this is at the expense of Customer intimacy, in-so-far as you can only “customise” using after-market products the Apple products are standardised and pretty locked-down.

Similarly would suggest buying a burger at MacDonalds is an example of Operational excellence. You know what you are getting and it is cheap, fast, efficient and standard. Note that operational excellence is not just about the product, it is about the entire value chain from sourcing, logistics, premises, people, and production. This is a marked difference from buying anything bespoke or customised to the customer’s particular requirement.

So what?

Rather like the argument “..Good food costs less at Sainsbury’s..” I wonder if pursuing an exclusive approach of operational excellence, customer intimacy or product leadership is a wise move or putting yourself into a corner.

Here the trade-offs appear to be less about the product (price, quality, functionality) and more about organisational design and core competency. The difference between a factory produced product and a craftsman produced product may be debatable but there is a big difference in the organisational design and core competency.

I suggest that you may be able to modify a product (price, quality, functionality) much more quickly than you can change organisational design and core competency.

This is interesting because choosing the right organisational design and core competency for your organisation may be a much longer-term and committing decision.

MORE INFORMATION

More information on Michael Porter and Competitive strategies
http://www.mindtools.com/pages/article/newSTR_82.htm

More information on The Discipline of Market Leaders (1997).
http://www.marsdd.com/mars-library/competitive-strategies-in-operational-excellence-customer-intimacy-and-product-leadership/




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THE AUTHOR

Tim Rogers is an experienced Project and Change Leader. He is founder of www.ciChange.org and curator for www.TEDxStHelier.Com . He is Programme Manager for the commercialization of Jersey Harbours and Jersey Airport. He is also Commonwealth Triathlete and World Championships Rower with a passion for teaching and learning and is a Tutor/Mentor on the Chartered Management Institute courses.

Email: TimHJRogers@AdaptConsultingGroup.com
Mob: 07797762051 | Twitter @timhjrogers | Skype timhjrogers 

Is it right to raise the bar?


ciChange


Is it right to raise the bar?


There is an argument that if you can jump High Hurdles then you can jump Low Hurdles. But it isn’t necessarily true if you can jump Low Hurdles then you can jump High Hurdles. So logically you’d train for High Hurdles and be able to do both?

Not true!

That’s like saying if you can run 26.2 miles you can obviously also run 100meters, but you won’t find any marathon runners squaring up against Usain Bolt!

Over-capitalising, gold-plating or over-engineering solutions is more likely to cause failure than safeguard success: The demise of Saab motor company is probably a good example.

Likewise “… the enemy of a good project is the dream of a perfect project…” or my personal view on Project Management: 100% done is better than 70% perfect.


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ciChange is sponsored by Total Solutions Group http://www.tsgi.co/

THE AUTHOR

Tim Rogers is an experienced Project and Change Leader. He is founder of www.ciChange.org and curator for www.TEDxStHelier.Com . He is Programme Manager for the commercialization of Jersey Harbours and Jersey Airport. He is also Commonwealth Triathlete and World Championships Rower with a passion for teaching and learning and is a Tutor/Mentor on the Chartered Management Institute courses.

Email: TimHJRogers@AdaptConsultingGroup.com
Mob: 07797762051 | Twitter @timhjrogers | Skype timhjrogers 

Sunday 14 December 2014

If you were a car, which would it be, and why?


I recently attended a Leadership workshop which suggested that we should aspire to market ourselves as the human equivalent of the Burj Al-Arab: premium priced and top of the range, compared to a truckers café or the intermediate option, the Hilton. I understand the logic, but I am not convinced and here is why…

BRANDING, COMMUNICATION AND CONGRUENCE

If you believe in self-branding then you need to align what you say and what you do. You need to “walk the walk, as well as talk the talk”. Any mis-match between your words, actions and values will undermine you message, credibility and branding and loose you friends and followers who may perceive you as disingenuous.

Arguably branding and communication go hand-in-hand since the former is about perceptions and expectations (what’s in the head of the audience) and latter is about motivating and directing (the audience actions and outcomes).

Branding = Perceptions and Expectations
Communication = Motivating and Directing

If these are aligned then you will at the very least be a great communicator and probably a good leader because people know, understand and follow it’s like the music and lyrics coming together to make a song everyone can sing.

PERSONAL BRANDING

Rather than compare myself to the Burj Al-Arab I’d rather make a simpler comparison of myself as a car since more people can identify with a car than a hotel that most will never visit.

I’d not be an expensive sports car (too flashy, expensive and impractical) nor an old banger (cheap, nasty and unreliable) but perhaps a VW Van, at the comfortable end of the scale. Why? Because it is comfortable, practical, affordable, flexible, utilitarian and fun, as well as being versatile to different situations and appealing to different drivers for different purposes.

We could extend this branding idea further: What you wear, where you eat; what you drive. In my case I wear a smart suit, but not designer. I prefer a café and wholesome food to a flashy restaurant. I drive a van (when travelling to triathlons) and an estate (for carrying canoes, rowing kit, sailing kit, mobile gym etc.)

I’ll accept the vehicles and their reasons are uncommon, but a quick look in the car park and a walk through town suggests to me my choices are mainstream and that for every Porsche driving diner of La Capinina wearing a Gorgio Armani suit and Barker shoes there are at least 100 people more like me.

Why should I aspire to market myself as the human equivalent of the Burj Al-Arab? Surely to win friends and influence people (or do business with them) I should be more like them, so that they like me. Ingratiating yourself to social-economic class to which you don’t belong is unlikely to be sustainable.

This reminds me of the problems which led to the economic collapse: people spending money they don’t have, on things they don’t need, to impress people they don’t like.

CONCLUSION

You don’t have to be flashy or expensive to be successful. Indeed I would council toward being more down-to-earth and affordable.



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ciChange is sponsored by Total Solutions Group http://www.tsgi.co/

THE AUTHOR

Tim Rogers is an experienced Project and Change Leader. He is founder of www.ciChange.org and curator for www.TEDxStHelier.Com . He is Programme Manager for the commercialization of Jersey Harbours and Jersey Airport. He is also Commonwealth Triathlete and World Championships Rower with a passion for teaching and learning and is a Tutor/Mentor on the Chartered Management Institute courses.

Email: TimHJRogers@AdaptConsultingGroup.com
Mob: 07797762051 | Twitter @timhjrogers | Skype timhjrogers

Tuesday 9 December 2014

Why should anyone aspire to be a leader?


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Why should anyone aspire to be a leader?


I have been recommended a book: Why Should Anyone Be Led by YOU? Authors Robert Goffee and Gareth Jones. I was alarmed at the idea that someone should think of me as a leader, or indeed that anyone should aspire to be a leader.

THE BOOK

I have ordered the book from Amazon and may offer an opinion in due course. However I have read a Harvard Review white paper by the same title which says..

If you want to silence a room of Leaders, try this small trick. Ask them, “Why would anyone want to be led by you?” We’ve asked just that question for the past ten years while consulting for dozens of companies in Europe and the United States. Without fail, the response is a sudden, stunned hush. All you can hear are knees knocking.

Leaders have good reason to be scared. You cant do anything is business without followers, and followers in these “empowered” times are hard to find. So Leaders had better know what it takes to lead effectively-they must find ways to engage people and rouse their commitment to company goals. But most don't know how, and who can blame them? There’s simply too much advice out there. Last year alone, more than 2,000 books on Leadership were published, some of them even repackaging Moses and Shakespeare as leadership gurus.

We’ve yet to hear advice that tells the whole truth about leadership. Yes, everyone agrees that leaders need vision, energy, authority, and strategic direction. That goes without saying. But we’ve discovered that inspirational leaders also share four unexpected qualities:

Humanity: by exposing some vulnerability, they reveal their approachability
Act: their ability to collect and interpret soft data helps them know just when and how to.
Do: Inspirational Leaders empathize passionately-and realistically –with people, and they care intensely about the work employees.
Themselves: they capitalize on what’s unique about them

You may find yourself in a top position without these qualities, but few people will want to be led by you.   Our theory about the four essential qualities of leadership, it should be noted, is not about results per se.  While many of the leaders we have studied and use as examples do in fact post superior financial results, the focus of our research has been leaders who excel at inspiring people in capturing hearts, minds and souls. This ability is not everything in business, but any experienced leader will tell you it is worth quite a lot. Indeed, great results may be impossible without it.

If you would like a .PDF copy of the Harvard Review white paper please email me timhjrogers@cichange.org

WHY NOT BEING A LEADER IS A GOOD THING

A quick look at history will give you many examples of leadership and in many cases the leaders may have been great at pursuing their agenda and adept at getting people to do their bidding, but it isn’t universally the case that their leadership was beneficial to others.

This is most obvious in the context of war: Hitler, Attila the Hun; Genghis Chan, were all great leaders but I don’t aspire to be like them and might worry about anyone who does.

It rather like the joke, we should never elect anyone who wants to be a politician, since power should be conferred to people who want to get things done, not simply in to those with the desire for power.

Being invited to join a Leadership Group and recommended a book: Why Should Anyone Be Led by YOU? Rather made me feel like Groucho Marks who said “I don't want to belong to any club that will accept people like me as a member”

BEING A ROAD BUILDER

Instead I would prefer to be a knowledgeable road builder: tell me where you would like to go and I will offer the tools, techniques, templates and training to support your project. If it is interesting and rewarding you can also have my passion, drive and enthusiasm to help you along the way.

I’d like to be respected about the matters of which I am knowledgeable and consulted on the issues which affect me, and where I can add value. But I don’t seek to be a leader, and am rather disappointed that so much resource and attention is dedicated by so many, to so few, with such little success or benefit.

Despite 2,000 books on Leadership I see very little great leadership and would better value getting things done than having amassed many votes or having an adoring following.

I enjoyed a phrase quoted in a recent meeting “the enemy of a good plan, is the hope for a perfect plan”. I have often suggested that “100% done is better than 70% perfect” and there are many similar views and phases: “a bird in the hand is worth two in the bush” or “better to catch one rabbit than pursue two”. These truisms have in common the idea of just getting the basics right: This doesn’t require leadership.

Collaboration, co-operation, communication and community is about facilitation and generally more successful between equals rather than between leaders and followers. The advantage in being a consultants or a change manager is that you offer a neutral Switzerland for ideas, debate, discussion, discover and growth this is much more difficult when you are standing on someone’s career ladder.

I don’t doubt that the world is a better place for Martin Luther King; Ghandi and other great leaders but what is interesting is that their leadership was not sought but the outcome of circumstance.

Winston Churchill for example was a great war-time leader, but only put in office when circumstances demanded and quickly voted out when the state of affairs changed for the better. This idea is sometimes referred to as contingent leadership.

See http://www.practical-management.com/Leadership-Development/Contingent-Leadership.html

SIX LEADERSHIP STYLES

There are, of course, many types and styles of leadership

Here are six leadership styles Goleman uncovered among the managers he studied, as well as a brief analysis of the effects of each style on the corporate climate:

1.THE PACESETTING LEADER expects and models excellence and self-direction. If this style were summed up in one phrase, it would be "Do as I do, now." The pacesetting style works best when the team is already motivated and skilled, and the leader needs quick results. Used extensively, however, this style can overwhelm team members and squelch innovation.

2.THE AUTHORITATIVE LEADER mobilizes the team toward a common vision and focuses on end goals, leaving the means up to each individual. If this style were summed up in one phrase, it would be "Come with me." The authoritative style works best when the team needs a new vision because circumstances have changed, or when explicit guidance is not required. Authoritative leaders inspire an entrepreneurial spirit and vibrant enthusiasm for the mission. It is not the best fit when the leader is working with a team of experts who know more than him or her.

3.THE AFFILIATIVE LEADER works to create emotional bonds that bring a feeling of bonding and belonging to the organization. If this style were summed up in one phrase, it would be "People come first." The affiliative style works best in times of stress, when teammates need to heal from a trauma, or when the team needs to rebuild trust. This style should not be used exclusively, because a sole reliance on praise and nurturing can foster mediocre performance and a lack of direction.

4.THE COACHING LEADER develops people for the future. If this style were summed up in one phrase, it would be "Try this." The coaching style works best when the leader wants to help teammates build lasting personal strengths that make them more successful overall. It is least effective when teammates are defiant and unwilling to change or learn, or if the leader lacks proficiency.

5.THE COERCIVE LEADER demands immediate compliance. If this style were summed up in one phrase, it would be "Do what I tell you." The coercive style is most effective in times of crisis, such as in a company turnaround or a takeover attempt, or during an actual emergency like a tornado or a fire. This style can also help control a problem teammate when everything else has failed. However, it should be avoided in almost every other case because it can alienate people and stifle flexibility and inventiveness.

6.THE DEMOCRATIC LEADER builds consensus through participation. If this style were summed up in one phrase, it would be "What do you think?" The democratic style is most effective when the leader needs the team to buy into or have ownership of a decision, plan, or goal, or if he or she is uncertain and needs fresh ideas from qualified teammates. It is not the best choice in an emergency situation, when time is of the essence for another reason or when teammates are not informed enough to offer sufficient guidance to the leader.

See https://infopeople.org/sites/all/files/past/2006/exploring/cg_EI_leadership_styles1.pdf

Only in extremis would I step in to be a leader, not least because the moment you make the step from facilitator to leader you risk treading on the toes of the people you were seeking to support. That move may not be welcome!

POWER V POSSIBILITIES

It seems late in this blog to think about the definition of Leadership, but it is useful ahead of debate about leadership and power.

Leadership is…

1. the position or function of a leader, a person who guides or directs a group: "He managed to maintain his leadership of the party despite heavy opposition."
Synonyms: administration, management, directorship, control, governorship, stewardship, hegemony.

2. ability to lead: "As early as sixth grade she displayed remarkable leadership potential."
Synonyms: authoritativeness, influence, command, effectiveness; sway, clout.

3. an act or instance of leading; guidance; direction: "They prospered under his strong leadership."

4.the leaders of a group: "The union leadership agreed to arbitrate."

Becoming a leader appears to be significantly about the acquisition and use of power. There are many source of power, and all seem to be related to the management of people and resources.

Coercive power -The ability to impose sanctions or punishment to gain compliance
Reward power -The ability to provide rewards or recognition to gain compliance
Legitimate power -The right to influence the activities of others based on job or position
Expert power -Respect gained based on skills, expertise or experience
Referent power -Positive personal traits or integrity
Information power -Possession of or access to, valuable information
Connection power -Access to others who can provide rewards or sanctions

See http://www.plantservices.com/articles/2011/06-human-capital-leadership-power/

Being a consultant, change manager, facilitator or mentor I am more interested in the potential of ideas and growth through education and understanding rather than direction.

For example, my founding of ciChange.org and curatorship of TEDxStHelier.com is more to do with a passion for teaching, learning and sharing ideas and growth than the pursuit of politics or corporate commercial success.

LEADERSHIP FEEDBACK

I am interested in leadership.

If you have ideas which either agree with, or challenge the views in this blog please don’t hesitate to give me a call 07797762051 if you’d like to discuss on the phone, or send me a meeting invitation timhjrogers@cichange.org and I’ll buy the coffee.




ciCHANGE FEEDBACK

Please share your thoughts either directly by email or via Social Media
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Twitter @ciChange https://twitter.com/CIChange
Linked-In http://www.linkedin.com/groups/CI-Change-4301853

ciChange is sponsored by Total Solutions Group http://www.tsgi.co/

THE AUTHOR

Tim Rogers is an experienced Project and Change Leader. He is founder of www.ciChange.org and curator for www.TEDxStHelier.Com . He is Programme Manager for the commercialization of Jersey Harbours and Jersey Airport. He is also Commonwealth Triathlete and World Championships Rower with a passion for teaching and learning and is a Tutor/Mentor on the Chartered Management Institute courses.

Email: TimHJRogers@AdaptConsultingGroup.com
Mob: 07797762051 | Twitter @timhjrogers | Skype timhjrogers 

CULTURE OR DATA – WHICH IS MORE IMPORTANT?

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