Bud Bilanich | The Common Sense Guy

You Need to Read "Engaged Leadership" by Clint Swindall

In my book, 4 Secrets of High Performing Organizations, (You can get a copy in ebook format by clicking on the link just to the left.) I make the point that all successful businesses and the people who lead them have four things in common:

• Successful businesses and the people who lead them develop and communicate a clarity of purpose and direction.
• Successful businesses and the people who lead them engage the full commitment of everyone in the organization.
• Successful businesses and the people who lead them skillfully execute the things that matter.
• Successful businesses and the people who lead them build strong, lasting mutually beneficial relationships with important outside constituencies.

It’s always great to find someone who agrees with me, so that’s why I liked Engaged Leadership: Building a Culture to Overcome Employee Disengagement so much.  Clint Swindall, the author has written a great book.  It is part business fable, and part how to manual.

Mr. Swindall tells the story of Halifax, a call center company, much as I tell the story of Brennan Newell and Diamond Inc. in 4 Secrets. 

But Mr. Swindall goes me one better.  After he finishes the fable, he spends another 60 or so pages telling the reader how to put to work the lessons in the Halifax story.  He tells us that engaged leadership has three facets:

• Directional Leadership
• Motivational Leadership
• Organizational Leadership

While not a one-to-one match, these three leadership facets are very similar to the points I make about clarity, commitment and execution.  No wonder I like Mr. Swindall’s book so much!

I don’t want to steal Mr. Swindall’s thunder but he makes some great points about each leadership facet.

When discussing Directional Leadership, he has the following four suggestions.  Recruit from the top 26%.  Prepare your organization for change.  Let everybody in your organization know how they contribute.  Constantly communicate progress.

When he moves to Motivational Leadership, Mr. Swindall offers these four points.  Lead with positive motivation.  Celebrate small successes.  Encourage work life balance for all employees.  Create a fair work environment.

Similarly, Mr. Swindall offers some more cogent common sense advice in his discussion of Organizational Leadership.  Identify and position talent appropriately.  Build a bridge between generations.  Move toward real empowerment.  Establish and implement a strategy to maintain success.

I really like this book; primarily because of it’s format.  The fable is great for readers who learn best by listening to stories and by watching what other people did in a given situation.  The second section in which Mr. Swindall gives concrete tips on implementing
Directional Leadership, Motivational Leadership and Organizational Leadership will appeal to readers who like a no nonsense nuts and bolts approach.

Whichever learning type you are, do yourself a favor and pick up a copy of Engaged Leadership.  Put its ideas to work and watch your business grow and prosper.

That’s it for today.  Thanks for reading.  Log on to my website www.BudBilanich.com for more common sense.  Check out my other blog: www.SuccessCommonSense.com for common sense advice on becoming the career and life success you are meant to be and to get a copy of my new ebook Star Power: Common Sense Ideas for Career and Life Success.

I’ll see you around the web, and at Alex’s Lemonade Stand.

Bud

PS: Speaking of Alex’s Lemonade Stand – my fundraising page is still open.  Please go to www.FirstGiving.com/TheCommonSenseGuy to read Alex’s inspiring story and to donate if you can.

Don't Lie, Cheat or Steal -- or You'll End Up Like Joe Nacchio

Special Note:  I have a new ebook out Star Power: Common Sense Ideas for Career and Life Success.  You can get a copy by logging on to my other blog: www.SuccessCommonSense.com, clicking on the picture of the book cover and following the link.  I hope you enjoy Star Power and find it helpful.  Now, on to today's post...

Joe Nacchio got sentenced to six years in prison last Friday.  He also has to forfeit $52 million in stock sale gains and pay a $19 million fine.  While Mr. Nacchio may not be as well known as Ken Lay, Dennis Kozlowski or John Rigas, here in Colorado he is every bit – if not more notorious. 

The CEO Mastermind

I had a very nice surprise in my email in box yesterday.  Henri Schauffler, the CEO Mastermind and author of a great blog www.ceocoachblog.com, posted a piece about 4 Secrets of High Performing Organization on his blog.  I’ve taken the liberty of posting Henri’s comments.  Read on to see what he has to say.

Free E book Download For Small Business CEOs

Bud Bilanich, author of the most worthwhile blog, The Common Sense Guy, is offering a free download of an ebook version of his new book, 4 Secrets of Highly Performing Organizations.

Here are the four simple and profound "secrets" worthy of the attention of all small business CEOs:

1. Successful businesses develop and communicate a clarity of purpose and direction.
2. Successful businesses enlist the sincere commitment and engagement of all of their employees.
3. Successful businesses skillfully execute the things that matter.
4. Successful businesses build mutually beneficial relationships with important outside constituencies.

Now, you may say these are just, "Common Sense."  Hey, Bud - you got the right brand for yourself!

I wholeheartedly recommend to all CEO Coach Blog readers to download this free book and at least skim its contents.

• clarity
• commitment
• execution
• relationships

These are indeed Keys to creating a successful small business - indeed, any human endeavor for that matter!

If you've read The 4 Keys, tell us what you're thinking.  Have you begun working on developing these core business traits in your small business?

I spent some time on Henri’s blog and website and was really impressed.  I downloaded his seven part e course How to Outmanage, Outhire, Outsell and Outprofit All Your Competition.  Henri has packed a lot of useful, common sense information into this e course.  You owe it to yourself to download it, study it and use the great ideas he presents.  I’m going to put them to work in my business.

That’s it for today.  Thanks for reading.  Log on to my website www.BudBilanich.com for more common sense.  Check out my other blog: www.SuccessCommonSense.com for common sense advice on becoming the career and life success you are meant to be.

I’ll see you around the web, and at Alex’s Lemonade Stand.

Bud

PS: Speaking of Alex’s Lemonade Stand – my fundraising page is still open.  Please go to www.FirstGiving.com/TheCommonSenseGuy to read Alex’s inspiring story and to donate if you can.

Don't Drink and Drive -- or Fax and Drive, or EMail and Drive, or Play Video Games and Drive

I’m in New York today – actually I was this morning, I had to drive to some meetings in New Jersey.  As I was driving, I heard a Donald Trump minute on the radio. 

He was talking about the fact that several states are in the process of enacting legislation that would make it illegal to send e mails and faxes and play video games while you are driving.  Mr. Trump pointed out that we’re in pretty bad shape when we have to pass laws to keep people from doing really stupid things.

I agree.  Common sense says that driving is tough enough – without the distractions of electronic technology.  Cell phones are bad enough, but e mails, faxes and video games take the lack of common sense while driving to a whole new level.

Whether or not your state passes a law, I suggest that you use your common sense while driving and pay attention to the driving – not your electronic tools and toys.  Or, as the bumper sticker I saw recently said:

Hang up and drive!

That’s it for today.  Thanks for reading.  Log on to my website www.BudBilanich.com for more common sense.  Check out my other blog: www.SuccessCommonSense.com for common sense advice on becoming the career and life success you are meant to be.

I’ll see you around the web, and at Alex’s Lemonade Stand.

Bud

PS: Speaking of Alex’s Lemonade Stand – my fundraising page is still open.  Please go to www.FirstGiving.com/TheCommonSenseGuy to read Alex’s inspiring story and to donate if you can.

Applying the 4 Secrets of High Performing Organizations

Monday, the Wall Street Journal ran article with Alan Mulally, CEO of Ford Motor Company.  Mr. Mullaly came to Ford from Boeing, so he is an industry outsider.  He took over a company that lost $12.6 billion in 2006.

A sidebar to the interview included 5 tips from Mr. Mullaly on what it takes to succeed when you take charge of a company in an industry with which you’re not familiar.

1. Deal with reality, and restructure accordingly.
2. Talk to everybody – customers, dealers, employees, union leaders, suppliers investors.
3. Fine tune the business plan every week – not once a year.
4. Get all the players at the table.
5. Encourage subordinates to disclose problems.

I think this is good, common sense advice for leaders of any organizations – not just those who are entering a new industry.

As you know, I made a copy of 4 Secrets of High Performing Organizations available as an e book on Monday.  You can download your copy by following the link under the picture of the cover.  In 4 Secrets, I make the point that all successful businesses have four things in common:

• Successful businesses develop and communicate a clarity of purpose and direction.
• Successful businesses engage the full commitment of all of their employees.
• Successful businesses skillfully execute the things that matter.
• Successful businesses build strong lasting mutually beneficial relationships with important outside constituencies.

Let’s go back to Mr. Mullaly’s five suggestions and see how they match up with the points I make in 4 Secrets: clarity, commitment, execution, relationships.

1. Deal with reality, and restructure accordingly.  This is a clarity application – Mr. Mullaly is figuring out his company is and deciding where he wants to take it.
   2. Talk to everybody – customers, dealers, employees, union leaders, suppliers investors.  This is both a commitment and relationships application – talking to employees heightens commitment.  Talking to outsiders like customers and suppliers builds relationships.
   3. Fine tune the business plan every week – not once a year.  This is an execution application – Mr. Mullaly is watching performance closely and making adjustments as necessary.
   4. Get all the players at the table.  A commitment application.
   5. Encourage subordinates to disclose problems.  Another commitment application.

Sometimes people tell me that they like the 4 Secrets model, but they have trouble actually putting them to use.  I’ve used Mr. Mullaly’s advice as concrete examples of how one leader is using the clarity, commitment, execution, relationships concepts.  I hope this post will help you see ways that you can apply the 4 Secrets model in your unique leadership situation.

That’s it for today.  Thanks for reading.  Log on to my website www.BudBilanich.com for more common sense.  Check out my other blog: www.SuccessCommonSense.com for common sense advice on becoming the career and life success you are meant to be.

I’ll see you around the web, and at Alex’s Lemonade Stand.

Bud

PS: Speaking of Alex’s Lemonade Stand – my fundraising page is still open.  Please go to www.FirstGiving.com/TheCommonSenseGuy to read Alex’s inspiring story and to donate if you can.

4 Secrets of High Performing Organizations Available for Download

Just a quick post today...

Several people have asked that I make 4 Secrets of High Performing Organizations available as an e book.  I have decided to just that -- and to offer it to readers of this blog as no charge. 

If you look to the left of this post, you'll find a picture of the cover of 4 Secrets just below my picture.  If you click on the link, you will be directed to another link that will allow you to download the book.  This is the entire book, just as it appears in the book stores, but in ebook format.

I'm offering it to readers of this blog at no charge because I often mention it in my posts.  I hope you download and read 4 Secrets.  If you do, please send me your comments.

That’s it for today.  Thanks for reading.  Log on to my website www.BudBilanich.com for more common sense.  Check out my other blog: www.SuccessCommonSense.com for common sense advice on becoming the career and life success you are meant to be.

I’ll see you around the web, and at Alex’s Lemonade Stand.

Bud

PS: Speaking of Alex’s Lemonade Stand – my fundraising page is still open.  Please go to www.FirstGiving.com/TheCommonSenseGuy to read Alex’s inspiring story and to donate if you can.

Chipotle -- and Building Relationships With Outside Constituencies

In my book 4 Secrets of High Performing Organizations, I make the point that all successful businesses have four things in common. 

• Successful businesses develop and communicate a clarity of purpose and direction.
• Successful businesses engage the full commitment of their workforces.
• Successful businesses skillfully execute the things that matter.
• Successful businesses build strong, lasting, mutually beneficial relationships with important outside constituencies.

I have blogged about Chipotle Mexican Grills in the past.  Chipotle does a good job on all four of the secrets.  Yesterday, I was in one of their restaurants, reading one of their soda cups – Chipotle cups are always interesting and entertaining.  This one was called “People We’re Pleased to Know – Part 5.”  It was about a guy named Wes Jackson, and it focused on Chipotle’s commitment to building strong relationships with a very important constituency – the human community.  The cups read:

“Wes Jackson is fond of saying that ‘if your life’s work can be accomplished in your lifetime, you’re not thinking big enough.’  And no one is thinking bigger about sustainable agriculture than Wes Jackson.

“A plant geneticist and former professor, Wes is the founder of The Land Institute (www.landinstitute.org) – a Kansas based nonprofit that is working to transform agriculture by cross-breeding traditional, annual food crops like wheat, sunflowers and corn with deep-rooted perennials.  Planted in mixtures, they would diminish the need for pesticides, herbicides and fertilizers, in addition to saving water, greatly reducing erosion and replenishing the soil.

“That innovative philosophy led us into financially supporting The Land Institute and into employing more sustainable practices in our own company.  From naturally raised meats to organic beans.  From recycled bowls and napkins to greener building materials.  From considering alternative forms to energy to developing our own people.  And that’s just for starters.  But we aren’t alone in this eureka moment.

“Smithsonian Magazine named Wes on of 35 Innovators of Our Time, an honor he shares with the likes of Maya Angelou, Bill Gates and Steven Spielberg.  The MacArthur Foundation also awarded him a genius grant for his work.  Both distinctions are fitting accolades for this visionary man.”

Chipotle is a cool company – their stores are fun to visit, and their food is great.  I think this is because they have intuitively mastered the 4 Secrets of High Performing Organizations.  If you have one near you stop by and get some tacos, a burrito or a bowl.  If you don’t wait a while, they’ll probably be building one near you.

That’s it for today.  Thanks for reading.  Log on to my website www.BudBilanich.com for more common sense.  Check out my other blog: www.SuccessCommonSense.com for common sense advice on becoming the career and life success you are meant to be.

I’ll see you around the web, and at Alex’s Lemonade Stand.

Bud

PS: Speaking of Alex’s Lemonade Stand – my fundraising page is still open.  Please go to www.FirstGiving.com/TheCommonSenseGuy to read Alex’s inspiring story and to donate if you can.

Tony Dungy on Leadership

I read a great interview with Tony Dungy in the July 16, 2007 issue of Newsweek.  If you don’t already know, Tony Dungy is the Head Coach of the Super Bowl Champion Indianapolis Colts. 

I have been a Tony Dungy fan since he played for the Steelers in their Super Bowl years in the late 1970’s.  He was a back up Safety and a special teams player.  He played hard.  You could tell he was smart just by watching him play.  He didn’t have a long career as a player, but he has been and is a very successful coach. 

He is also a very nice man.  I had the opportunity to meet him several years ago.  One of my clients invited me to do some team building with his leadership team.  We did this work in Miami, the Thursday and Friday before the Super Bowl – and we also got to attend the NFL sponsored events and the game – which the Denver Bronco’s, my second favorite team, won.

I ran into Tony Dungy at the Friday night party hosted by the NFL.  At that time, he was the head coach of the Tampa Bay Buccaneers.  I introduced myself and told him that I followed his career since he was a player with the Steelers.  He was very nice.  We had a 20 minute conversation – about football and about life.  He was a great listener.  Even though, several people interrupted us to say hello, he always turned his attention back to me until our conversation had run its course.  I became an even bigger fan of his after that evening.

Enough of my personal stories – I’d like to talk about a few points that Tony Dungy made in the Newsweek interview.  When the interviewer asked him how he would like to be seen and remembered, he replied, “Just like my dad, a teacher who helped students become better and reach their potential.” 

If you’re a leader, take note of those words.  To me, the most important thing a leader can do is to help people succeed.  Helping your people succeed benefits you.  Leaders succeed because their people succeed.  But more importantly, I believe leadership is a sacred trust.  Leaders have the responsibility – to their organizations and to society -- of helping people grow and flourish, and to develop more leaders.  If you’re a leader, you would be well served to follow Tony Dungy’s lead here.

Mr. Dungy said something else in the interview that also caught my attention.  “Chuck Knoll (former Pittsburgh Steelers Head Coach and winner of four Super Bowls) had a way of describing everybody’s job as important.  And nobody’s job was indispensable.  So he made guys like me – I’m a backup safety and special teams player – feel like he needed you to win.  He also made you feel that if Terry Bradshaw (the Steelers’ Quarterback in those four Super Bowls and a member of the Professional Football Hall of Fame) got hurt, we were still going to win the game.”

Now that’s some leadership common sense.  Make everyone feel as if he or she must do a good job at his or her job if the team is going to win.  Let no one feel as if he or she is so important that the team can’t win without him or her. 

That means that the entry level machine operator must do a good job if a manufacturing operation is going to succeed.  And, that the success of the facility is based on everyone’s contribution -- not just the leadership of the Plant Manager.  It means that the person who delivers the product is as important as the person who makes it, or the person who sells it, or the person who invented it.

In other words, all jobs are important, and all people should be treated as important because of their contributions.  I began my book Solving Performance Problems with two quotes – one from Peter Drucker and one from me.  That’s one of the advantages of writing a book, you can put your ideas on the same page as the greatest management thinker in history. 

Mr. Drucker’s quote was, “Executives owe it to the organization and to their fellow workers not to tolerate poor performing individuals in important jobs.”  I followed this up with, “All jobs are important.”  They are – and the people in those jobs are even more important.  Good leaders find a way to make sure that everyone they lead understands the important contributions they make to their company’s success.

Tony Dungy know this – and he practices it.  His Colt’s are the reigning Super Bowl Champions.  And if the Steelers and Broncos don’t win the Super Bowl this year, I hope Dungy and the Colts do….

That’s it for today.  Thanks for reading.  Log on to my website www.BudBilanich.com for more common sense.  Check out my other blog: www.SuccessCommonSense.com for common sense advice on becoming the career and life success you are meant to be.

I’ll see you around the web, and at Alex’s Lemonade Stand.

Bud

PS: Speaking of Alex’s Lemonade Stand – my fundraising page is still open.  Please go to www.FirstGiving.com/TheCommonSenseGuy to read Alex’s inspiring story and to donate if you can.

rahobed: A Tale of Two Organic Grocers

Check this out.  I found it on CNBC.com…

SEC Examines Whole Foods CEO’s Chat Room Exploits

The online postings of Whole Foods Market's chief executive have become the subject of an informal inquiry by the Securities and Exchange Commission, according to the Wall Street Journal, citing people familiar with the matter.

Company CEO John Mackey posted numerous messages on a Yahoo financial forum under the user name "rahodeb," according to a court document filed by the U.S. Federal Trade Commission and postings on Yahoo.

The postings came to light during an FTC investigation of Whole Foods' planned takeover of Wild Oats Markets.

Mackey's messages painted a bright future for Whole Foods, the largest U.S. natural and organic grocer, and downplayed the threat posed by competitors.

While it isn’t clear that Mr. Mackey violated any laws in his posting, they have raised numerous legal questions, the Journal reported.

The newspaper also reported the SEC is likely to examine whether Mr. Mackey’s comments contradicted what the company previously said or were overly optimistic about the firm’s performance.

In addition, the SEC will likely look at whether the CEO selectively disclosed material corporate information, which could violate a securities law passed in 2000, known as Regulation Fair Disclosure, which was designed to prevent executives from sharing information with favored clients or analysts.

Whole Foods didn’t immediately return calls seeking comment.

The people in the Whole Foods PR department must be feeling a little like Tony Snow, the White House Press Secretary, who has to explain his boss’ gaffes.  I don’t blame them for not returning calls.

Seriously, while it is still not clear if Mr. Mackey violated any SEC laws, he sure is guilty of violating some common sense laws.  Let’s take a look.

1. He used an alias “rahodeb”, which turns out to be an anagram of his wife’s name – Deborah.   One uses an alias to conceal one’s identity.  Common sense says that if you’re unwilling to reveal your true identity, you’re ashamed of what you’re doing – or worse yet, you know what you’re doing is wrong.
2. He “painted a bright future for Whole Foods” and “downplayed the threat posed by competitors.”  Shades of Ken Lay telling the world and the troops at Enron that things were great, when they in fact, were going to hell in a hand basket.
3. He also bashed Wild Oats, a competitor that Whole Foods is in the process of acquiring.  That’s not right.

I could go on, but you get the point.  Honest, straightforward communication is always the common sense thing to do.  Mr. Mackey seems to have forgotten that.  In this case, he has done some serious damage to his personal reputation and the reputation of the company he leads.

That’s too bad, because I like Whole Foods.  We shop there quite often.  Their food is fresh and delicious.  I’m not sure if this episode will result in me taking my business elsewhere, but I am thinking about it.  I’m sure a lot of Whole Foods customers are thinking twice about where to spend their money these days.

In the end, several things could happen. 

• All this may be a tempest in a tea pot. 
• The Wild Oats acquisition could fall through. 
• Mr. Mackey could go to jail – unlikely but possible. 

One thing is certain however; all this could have easily been avoided if Mr. Mackey had never invented the rahodeb persona.

Before I end this post, one other common sense point.  Don’t buy stocks based on the tips of people in chat rooms – especially those with names like rahodeb.

That’s it for today.  Thanks for reading.  Log on to my website www.BudBilanich.com for more common sense.  Check out my other blog: www.SuccessCommonSense.com for common sense advice on becoming the career and life success you are meant to be.

I’ll see you around the web, and at Alex’s Lemonade Stand.

Bud

PS: Speaking of Alex’s Lemonade Stand – my fundraising page is still open.  Please go to www.FirstGiving.com/TheCommonSenseGuy to read Alex’s inspiring story and to donate if you can.

Treat your People Right and They'll Treat You Right

Yesterday I did a post on a stupid – OK, not common sense – policy that Abercrombie and Fitch has regarding the number of items a customer can purchase at one time.  This got me thinking about customer service in general.  After a little research, I came across an American Customer Satisfaction Index.  Here are the latest scores in two categories: Department and Discount Stores and Specialty Retail Stores.

Department and Discount Stores

Kohl’s   80
JC Penny  78
Target   77
Dillard’s  75
Average  74
Sears   73
Wal-Mart  72
Federated  71
Kmart   70

Specialty Retail Stores

Costco   81
Sam’s Club  78
Best Buy  76
Average  75
Lowe’s   74
Home Depot  70
Circuit City  69

I’m a big Costco fan, so I wasn’t surprised to see that they topped the Specialty Retail category. 

I believe that one of the reasons Costco is successful because they do well by the people who work for them.  In my book, 4 Secrets of High Performing Organizations, I point out that engaged and committed employees are critical to a company’s success.  Leaders at Costco have demonstrated a willingness to accept a slightly smaller profit margin in order to ensure that their employees can afford health insurance.  This type of thinking leads to an engaged and committed workforce.

Contrast this with Circuit City – 11 points lower than Costco in customer satisfaction.  Recently, Circuit City laid off all of its higher paid employees – for no reason other than they were higher paid.  Their logic?  Higher paid employees result in lower profit margins.  Duuh – someone should have told them that poor customer service results in lower sales – and a higher profit margin to lower sales ratio isn’t exactly good business either.

The common sense point here – treat your employees as if they are your most important asset, and they’ll give you the service you need to keep your customers coming back.

Where would your company be on this list?  If you run a department in a large company, how well would your internal customers rate you? 

That’s it for today.  Thanks for reading.  Log on to my website www.BudBilanich.com for more common sense.  Check out my other blog: www.SuccessCommonSense.com for common sense advice on becoming the career and life success you are meant to be.

I’ll see you around the web, and at Alex’s Lemonade Stand.

Bud

PS: Speaking of Alex’s Lemonade Stand – my fundraising page is still open.  Please go to www.FirstGiving.com/TheCommonSenseGuy to read Alex’s inspiring story and to donate if you can.