Bud Bilanich | The Common Sense Guy

Use Gentle Professionalism to Build Strong Relationships With Your Customers

In my book, 4 Secrets of High Performing Organizations, I make the point that high performing organizations and the people who lead have four things in common.

• Successful businesses and the people who lead them develop and communicate a clarity or 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 relationship with important outside constituencies.

Today, I’d like to discuss how one company does an excellent job of managing its relationships with its customers – a very important constituency; and how another does a terrible job.  Both are car dealerships here in Denver.

Superperformance

Over the weekend, I read a great book: Superperformance, by Dave Guerra.  The title of this book struck a chord with me because high performing organizations is a subject close to my heart.  That’s why I wrote 4 Secrets of High Performing Organizations.  In that book I argue that high performing organizations and the people who lead have four things in common.

• Successful businesses and the people who lead them develop and communicate a clarity or 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 relationship with important outside constituencies.

In Superperformance, Dave Guerra makes some similar points, but in a unique way.  He argues that superperformance is based on a simple, common sense formula.  But, like most things common sense, the formula is easy to grasp, but takes work to implement effectively.  Here is the superperformance formula.

Process (Systems, Structure, Methods, Strategy)

X (Times)

Culture (Commitment, Values, Engagement, Inspiration)

= (Equals)

Superperformance (Customer Delight, Quality Excellence, Long Term Value, Outstanding ROI, Employee Joy in Work)

Dave says, “Process and culture are polar-complements; they oppose each other, but also need each other for completion.  Superperformers treat process and culture as dual hemispheres – two halves of one outperforming whole.”  He argues that high performing organizations, or superperformers, focus on both process and culture.  Superperformers achieve a dynamic balance.  These organizations have well developed, robust in control processes; and they have strong, positive cultures. 

Toyota is one of the world’s most successful companies.  When I was in Japan recently, I visited the Toyota Museum.  While I was there, I got a first hand look at its history and what makes it such a successful company.  On page 14, of Superperformance, there is a quote from Gary Convis, President of Toyota North America, that echoes Mr. Guerra’s thoughts.  “The Toyota Way, along with the Toyota Production System, make up Toyota’s DNA.”  In other words, Toyota’s culture (the Toyota Way), and processes (the Toyota Production System) are the two main contributing factors to its success.

In addition to the first rule: Process X Culture = Superperformance, Mr. Guerra lists seven other rules of Superperformance:

1. Superperformers superperform over time.
2. The paradigm shift of superperformance is from machine to organism.
3. Superperformance is produced by super management and super leadership.
4. Superperformance is transformed flow.
5. Superperformance is unleashed passion.
6. Superperformance requires metamorphosis.
7. Superperformers oscillate to continue superperforming.

You’ll have to read the book to grasp the richness and complexity of Mr. Guerra’s ideas.  I hope I have whet your appetite here.

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

Execution -- The Key to Success in Baseball and in Business

In my book 4 Secrets of High Performing Organizations, I make four points about successful businesses and the people who lead them.

• Successful businesses and the people who lead them develop and communicate a clarity or 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 relationship with important outside constituencies.

The World Series ended last night.  Boston beat Colorado four games to none.  After the game, I saw an interview with Clint Hurdle, the Rockies’ Manager.  Clint said that the reason the Red Sox won was because they executed better than the Rockies.  I’d agree.  Both their hitting and pitching were better than the Rockies.  Also, I think the Rockies self confidence suffered a severe blow when they lost the first game of the World Series 13 – 1 (see my post today on www.SuccessCommonSense.com).

One could say that the Rockies eight day layoff between the National League Championship Series and the beginning of the World Series hurt them – that they were rusty and their execution suffered as a result.  Whatever the reason, the simple truth is that the Rockies didn’t execute and the Red Sox did. 

The World Series raises an interesting point about execution.  To win the Series, you need to win four of seven games.  That means you have to out execute the other team 57% of the time.  That’s exactly what the Red Sox did against Cleveland in the American League Championship Series (they were 100% against Colorado).  By the way, Boston and Cleveland had the best record in baseball this year.  They both were 96 – 66.  That’s a 59% winning percentage.  If you’re a baseball fan you know that a .333 batting average (one hit every three times you bat) is great; that 33%.

33%, 57%, or 59% won’t get it in business.  In business, you have to execute well almost 100% of the time – that’s why many companies have instituted six sigma programs.   If you’re not familiar with six sigma, it is a system to reducing errors – of helping you execute more.  The goal of a six sigma program is to reduce defects – in products and service delivery to 3.4 per 1,000,000 – now that’s execution.

The common sense point here is simple.  Whether it’s baseball, where 57% is good enough to win the World Series, or business where less than four errors per million is the goal, execution is what it takes to success.  Improve your execution and you will improve your chances of success.

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.

Talk to the People You Lead

I subscribe to Laurie Taylor’s Tips and Tactic’s Ezine.  The October issue had some great common sense advice for leaders.  “Talk with your direct reports for 30 minutes every week in order to open up communications and break down barriers to growth.”

I’ll say it again – this is great common sense advice.  However, I know very few leaders who actually use it.  In the ezine, Laurie told a story:

“When I was conducting a workshop on ‘Cracking the Code to Your Company's Growth’, I mentioned this tactic (talking with your direct reports) to my room of CEOs and managers. One manager raised her hand and seemed a bit annoyed. 'I have 8 people that report directly to me. Do you mean you expect me to spend 4 hours every week talking to them?'”

The answer to that question is an unequivocal “yes”.  It’s only common sense.  The most basic job of any leader is to help the people he or she lead to succeed.  You can’t do that if you don’t have regular, meaningful conversations with those people.

Unfortunately, too many managers and leaders think like the one in Laurie’s story.  When I challenge them on this, they usually say that they are too busy to meet with their people regularly.  When I probe a little further, I find that they are too busy because they don’t delegate properly.  Instead of spending their time teaching their people what to do and how to do it, and then holding them accountable, they either do the work themselves or spend their time looking over their people’s shoulders. 

Leaders can break this cycle by heeding Laurie’s suggestion and spending focused time with the people they lead.  In these conversations, they can teach people what they need to know, show them how to do something the right way, listen to their problems and concerns and help them succeed.

John Kelly is one of the best leaders I know.  He meets with the people who report to him for one hour every week.  Before he got promoted, he had 12 people reporting to him.  That’s 12 hours out of every week.  John tells me that those were the best, most productive 12 hours in his week, because he had meaningful, substantive conversations with his people.  He found that as a result of these weekly meetings, the people he led got more done with fewer problems and ended up taking up less of his time than they did before he started them.  John has fewer people reporting to him since he got promoted, but he continues his practice of weekly one to one meetings.

The common sense point here is simple.  Effective leaders spend time with their people dealing with routine things.  In this way, routine things don’t turn into big problems.

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.

Ask Yourself A Simple Question: What Could Go Wrong?

In my book 4 Secrets of High Performing Organizations, I lay out four things that successful businesses and the people who lead them have in common.

• Successful businesses and the people who lead them identify and communicate a clarity of purpose and direction for the business.
• Successful businesses and the people who lead them develop an engaged and committed workforce.
• Successful businesses and the people who lead them skillfully execute the things that matter.
• Successful businesses and the people who lead them build mutually beneficial relationships with important outside constituencies.

Today, I’d like to focus on my third point -- execution.  The World Series began last night.  Boston beat Colorado 13 – 1.  It’s only one game of seven, but it doesn’t look good for the Rockies right now.  Last night on the field, Boston executed very well.  The Rockies’ execution (both pitching and hitting) was pretty poor.  In the coming games, the team that executes the best will win.

But there is another way to look at execution.  The Colorado Rockies are a business.  Selling tickets to their games is an important part of their business.  Making it easy for fans to buy tickets is something that matters and should be skillfully executed.

Macy's Customer Attraction Strategy

In what I assume was a branding move, Federated Department Stores changed its name to Macy’s recently.  They also bought another large retailer, the May Company.  In Colorado, where I live, May Company stores operated as part of the Foley’s chain.  That meant that 11 Foley’s (a Federated brand) changed their name to Macy’s.  Two more Macy’s have since opened. 

As I point out in my book 4 Secrets of High Performing Organizations, successful businesses build strong, lasting, mutually beneficial relationships with important outside constituencies.  Customers are the most important constituency for any business.  By rebranding its new, larger company as Macy’s, Federated has been able to bring a sense of unity to its somewhat disparate brands.

A recent article in the Denver Post highlighted Macy’s three pronged strategy to engage customers in Colorado.

1. Charity involvement
2. Sports and local events sponsorship
3. Advertising in Spanish as well as English

This is a common sense strategy.  First, as I pointed out in my post yesterday, it is just good business to give back to the local community (another important constituency for any business).  Second, Denver, like most of the rest of the US is sports crazy.  It is always helpful for Macy’s to be associated with local sports teams.  Third, Denver has a large Hispanic community, it is simple common sense to market to them in their native language.

Bob Mettler, Chief Executive of Macy’s West, gets it.  He says, “there are very important things about being a national company, but I think people say, ‘so that’s fine’ and appreciate it.  But how they feel about the company is based on the how the company operates in their community.”

He’s right.  At its heart, the retailing business is a local business.  Most people in Denver don’t care that the Macy’s store in New York City is the world’s largest retail establishment.  They want to see a presence in Denver.  That’s why charitable events, local sports sponsorship and English/Spanish ads all make sense.

One last thing, the May company, operator of Foley’s was a big coupon retailer.  Macy’s is not.  However, local Macy’s executives were quick to realize that the local market was used to coupons at Foley’s, so they have decided to reverse its position on coupons and make more available to the general public.  Previously, Macy’s limited most of its coupon offer to Macy’s credit card holders.

As I’ve said over and over, common sense says that successful companies build strong relationships with important outside constituencies.  With its three pronged approach, Macy’s is doing a great job of building relationships with its customers and the Colorado community.  Good for them.

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.

Make A Difference Day 2007

In my book, 4 Secrets of High Performing Organizations I make the point that successful companies and the people who lead them have four things in common.

• Successful companies and the people who lead them identify and communicate a clarity of purpose and direction for the business.
• Successful companies and the people who lead them develop an engaged and committed workforce.
• Successful companies and the people who lead them skillfully execute the things that matter.
• Successful companies and the people who lead them build mutually beneficial relationships with important outside constituencies.

The communities in which you live and do business are an important, but often overlooked constituency.  On Sunday, USA Weekend had Champ Bailey and Ben Roethlisberger on the cover.  If you’re not a pro football fan, Mr. Bailey plays for the Denver Broncos and Mr. Roethlisberger plays for the Pittsburgh Steelers, my two favorite NFL Teams.  They were on the cover because they are supporting Make A Difference Day 2007, Saturday, October 27.  Both told their stories about what they are doing to make a difference.  Make A Difference Day is sponsored by USA Weekend and has a simple mission: “Put your cares on hold for one day to care for someone else.” 

Don't Take It Personally

The October issue of Oprah Magazine has an interesting article by Cathie Black.  Ms. Black is the President of Hearst Magazines.  She has written a book called Basic Black: The Essential Guide for Getting Ahead at Work (and in Life) which gives advice on how to build a great career.

I read the article and believe that Ms. Black’s advice is great common sense – for anyone interested in becoming a career and life success, for leaders and for entrepreneurs.  Here is an overview of her Seven Rules for a Really Big Career.

1. Take risks that are calculated, not crazy.
2. The worst-case scenario is rarely as bad as you think.
3. Don’t personalize things that aren’t personal.
4. It’s best in the long run to make yourself a grudge-free zone.
5. Be generous with praise and careful with criticism.
6. Know the rules, so you know which ones to break.
7. It’s easier to ask for forgiveness than it is to get permission.

These are seven common sense rules that I really like.  I really like rule 3 – “don’t personalize things that aren’t personal.”  How true.  Many people are quite narcissistic.  They think that every thing that happens – positive and negative – in their lives is somehow a direct result of someone acting in a manner that is designed to either help or hurt them.

This simply is not true.  We all have to get over ourselves.  Most people don’t wake up in the morning and say to themselves, “I’m going to do everything I can to make Bud’s – or your – life miserable today.”  I always advise people to assume good intentions on the part of others.  If you do, you’ll find that a lot of things that you believe were directed at you, were just the other person’s way of doing his of her job.

The common sense point for today is simple.  Pay attention to all of Cathie Black’s rules.  But pay the closest attention to rule number 3 – “don’t personalize things that aren’t personal” – and you’ll be able to build better relationships with the people you lead and those with whom you do 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 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.

Common Sense Day Contest

I’m still looking for examples of common sense in action.  I’m doing this to celebrate Use Your Common Sense Day, November 4.  Because you read this blog, you know that I believe in the power of applied common sense.

The key word in the preceding sentence is applied.  Most people know what to do in most situations -- their common sense tells them.  However, many people don't actually follow their common sense.  That's why I've created Use Your Common Sense Day.  I want to encourage people to use their common sense -- in business and in life – for one day at least.

I've chosen November 4 as Use Your Common Sense Day because it is Will Rogers' birthday.  Will, a great American humorist, would have been 128 years old this November 4.  Among other things, he is famous for his saying "common sense ain't all that common".  I think it's more like "applied common sense ain't all that common". 

Thomas Edison once said "many people miss opportunity because it comes dressed in overalls and looks like work".  I think the same is true of common sense.  Most people know what to do in most situations -- their common sense tells them.  However, I have found that a lot of people don't use their common sense -- because it's too much work, or it's too difficult emotionally, or it's too time consuming, or for any number of reasons.  Let’s break that cycle!

I am on a crusade to get people to use their common sense.  That’s why I’ve created this day.  And, I’ve decided to run a contest.  Send me the best examples of where you’ve seen common sense in action – or better yet, where you’ve used you’re common sense with good results.  Post these ideas in the comment section of this blog, or send them to me at [email protected].  If you e mail, please put “Common Sense Contest” in the subject line.

Cathy, my wife – who has more common sense than anyone I know, and I will choose three winners on November 9 at the Know More Media booth at the Blog World Expo in Las Vegas.  And unlike most things that happen in Vegas, this will not stay in Vegas, I’ll share all of the entries and the winners on this blog. 

Speaking of Know More Media, check out Susan Gunelius' post on it on her Marketing Blurb.com blog (www.marketingblurb.com/2007/10/a_common_sense_contest.html.

These three winners will be entitled to a free hour of my common sense coaching time, a $500 value, on one of three subjects: leadership, entrepreneurship, or career and life success.  Everyone who submits an entry will receive a .pdf of my two ebooks: 4 Secrets of High Performing Organizations, and Star Power: Common Sense Advice for Career and Life Success.

So send me the best examples of common sense in action that you have. You'll be helping out others who are struggling to find a way to use their common sense, and you will win something.

I can't wait to see what you guys come up with!

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.

Common Sense Leaders Choose Their Words Carefully

As you know, I’m on a common sense quest (see my post of October 12 for more details).  I usually try to highlight the positive – places where I see common sense in action.  However, I must be having a bad week.  On Tuesday, I discussed Qwest’s non common sense policy of not repairing phone lines that don’t carry a signal when they get wet.

Today, I want to focus on something even more bizarre.  The October 15 issue of Newsweek had a quote from syndicated columnist Ann Coulter.  Ms. Coulter is a conservative Republican.  Here’s her quote.  “If we took away women’s right to vote, we’d never have to worry about another Democratic president.  It’s kind of a pipe dream; it’s a personal fantasy of mine.”

Before I go any further, I must preface the following remarks by saying that I am not a big fan of Ms. Coulter and that this blog isn’t a political blog – it’s a business blog.  Having said that…

I’m incredulous!  I can’t believe anyone, let alone a woman would suggest that we take away women’s right to vote.  Women comprise more that half of the population of the US.  What kind of democracy doesn’t allow one half of the population to participate in the electoral process?  I would feel this way if Ms. Coulter or say, Howard Dean, suggested that we take away the vote from men in order to avoid any more Republican presidencies.

The reason I bring up this, is not to get into a political debate with conservative Republicans, but to make a common sense point about leadership.  It’s important for leaders to pay attention to what they say.  If you’re a leader, you’re under a microscope.  People are watching you all the time.  You pretty much have to get it right the first time.  Politicians on both sides of the aisle have learned this lesson over and over again. 

In many cases, business leaders find it more difficult than politicians to say, “I misspoke.”  The people you lead are watching you.  They listen closely.  They remember what you said the first time, not how you corrected yourself. 

The common sense points for today are simple.  Think before you speak.  Never speak in anger.  Don’t make outrageous statements unless you are prepared to live with them.

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.