life

Making Your Goals Means Making a Plan

Harvey Mackay by by Harvey Mackay
by Harvey Mackay
Harvey Mackay | June 25th, 2012

OK, all you golfers -- ever played a skins game? In simple terms: Players during a round of golf wager on the best score for a single hole. If there's a tie, the "pot" rolls over to the next hole. One result of a skins game can be to up the ante on each hole. The backlash is taking your eyes off the long haul. In a skins game, you play for short-term stakes. As a result, strategy goes out the window.

Unfortunately, some people run their businesses that way. They muddle along in a never-ending skins game. This doesn't happen just in tiny companies. An insider at a famous blue-chip giant once quipped: "Our idea of long-term planning here is deciding what we'll do after lunch."

Anyone who has participated in a skins game on a golf course knows the painstaking attention paid to the line of every putt. It's a lot like what Peter Drucker describes as "the last of the deadly sins" of business, which he defines as "feeding problems and starving opportunities."

Drucker has long been considered the definitive authority on business planning. His principles are still widely used decades after his revolutionary writing on the concept of "management by objectives." Drucker sorted out a baffling world.

Planning boils down to two fundamental processes: goals and objectives. It is important to distinguish between the two. Goals are considered the purely quantitative and mostly financial targets. Objectives are more qualitative and elusive.1

Make your goals, and you stay in business. Advance your objectives, and you build a business worth having. The distinction between goals and objectives is hardly pure. Often objectives have quantitative measures attached to them as well, but they are rarely just numerical yardsticks.

At the age of 85, Drucker wrote "Managing in a Time of Great Change." A key premise: "Uncertainty -- in the economy, society, politics -- has become so great as to render futile, if not counterproductive, the kind of planning most companies still practice: forecasting based on probabilities."

Translation: Things no longer rest on a predictable base. How would I describe this sort of uncertainty? We live in a world where: "Computers make very fast, very accurate mistakes." And, "Artificial intelligence usually beats real stupidity."

Companies spend days, if not weeks, agonizing over their mission statements and business plans. How much precious, misspent time goes into the process? Get the business model right, and then accessorize it with the details. You may not need more than a few action plans focused on very restricted areas.

In real estate, it's location, location, location. In management, it's preparation, preparation, preparation. But, be very, very careful. It's not the sheer magnitude of the preparation that matters. It's the relevance of what you do. Is it clear? Will it change behavior? Does it sizzle?

Business can take some lessons on preparation from world-class athletes. For a recent seminar on goals and planning, I invited Peter Vidmar to be my guest. Vidmar is the highest scoring American gymnast in Olympic history and was the star of the 1984 Olympic Games in Los Angeles. He captained the USA men's gymnastics team to its first Olympic gold. He is now chairman of the USA Gymnastics Board of Directors and a broadcast commentator.

Vidmar understands goal setting in a very tangible way. Preparing for the Olympics is a life quest for these athletes.

He offered this advice: "Goals have to be realistic. I really take issue with any of those people who say you can be anything you want to be, because that's really not true. I'm 5 feet 5 inches and 130 pounds. There is no way I'm going to end up in the NFL. I think goals need to be measured and clearly defined. They also need to be time sensitive. You should give yourself deadlines.

"I think a goal should answer some questions," he continued. "In other words, be specific. It should answer 'what' -- what is it that you want to accomplish? It should answer 'why' -- why is it important to you? It should answer 'when' -- when are you going to get this done by? It should certainly answer 'how' -- how are you going to do it? Make sure your goals are meaningful for you."

And finally, Vidmar said: "When you work with a team, and when this goal is going to take a team effort, you've got to figure out a way to get each member of the team to take ownership of the goal themselves."

Mackay's Moral: You'll never reach your goal if you don't have one.

life

Reassessing Leadership for Today's Bosses

Harvey Mackay by by Harvey Mackay
by Harvey Mackay
Harvey Mackay | June 18th, 2012

As we enter the long hot summer of politics and read stories daily about corporate strategies, one common theme emerges: leadership. And there is seldom agreement about what real leadership looks like or who is best to provide it.

Why? My theory is that too often, people in leadership positions fail to realize that every decision affects real people, not just the bottom line. Every good leader I have known has understood that he or she is leading people, not just an organization.

A couple additions to your reading list might improve your leadership potential. Authored by my friend, Marilyn Carlson Nelson, "How We Lead Matters" is a collection of "remembrances of people and times in my life from which I've learned lessons that may provide some insight or guidance to others."

When Marilyn became CEO of Carlson -- with brands like Carlson Wagonlit Travel, the world's largest corporate travel company, Radisson Hotels, Country Inn & Suites and TGI Friday's -- she admits she had doubts that she could fill the role her father had bestowed on her. Her book is a treasure trove of how she handled situations from Sunday school to meeting global leaders. Among the terrific leadership lessons in the 70 stories are gems like these:

-- On a trip to India, Marilyn asked a businesswoman how she was able to address social issues in a country with such immense problems. The woman shared the story of Gandhi. His five possessions consisted of "a cloth garment, a walking staff, a broken pair of eyeglasses, a pair of wooden sandals and a pocket watch. Yet he transformed the world with his commitment and compassion."

-- "It's been said that the mark of a true leader is thinking well beyond his or her years, that is, establishing a leadership culture in an organization that becomes the organization's hallmark."

-- "When you are making a difficult decision, ask yourself if the decision you're about to make would show integrity, leadership, caring. And if you make that particular decision, will you be giving up on something you should continue fighting for? ... Never forget that your role as a leader is to be a steward for future generations."

Marilyn continues as chairman of Carlson, and Carlson continues to prosper. See a connection here?

A brand-new book, "Love Works: Seven Timeless Principles for Effective Leaders," also emphasizes the critical relationship between leadership and a passionate, motivated workforce. Author Joel Manby is president and CEO of Herschend Family Entertainment, the company with more than 10,000 employees that entertains more than 16 million guests at Silver Dollar City in Branson, Mo., and 25 other properties across America. Manby's experience on the television program "Undercover Boss" reinforced his confidence in HFE's workforce, but what followed was truly enlightening. He received thousands of responses from viewers who had watched the show, many from people who wished that their workplaces were more like what they had seen on TV -- "more respectful, cooperative, joyful and well, more loving."

Loving? How many of us can call our workplaces loving?

"The simple truth is this: There is a crisis of confidence in leadership. The level of dissatisfaction and even resentment present in the thousands of letters and email messages shocked me," Manby writes. "People felt as if they couldn't trust their leaders and bosses."

In a panel discussion by the Society of Human Resource Managers, he explained what sets his company apart. "We actually use love to define our leadership culture at HFE. Not love the emotion, but love the verb. We train our leaders to love each other, knowing that if they create enthusiasm with their employees, the employees will in turn create an enthusiastic guest experience. I think most organizations avoid discussions about how people should treat each other, and I think that's what is wrong with a lot of organizations. Why are we so afraid to talk about love?"

The seven principles sound basic enough: to be patient, kind, trusting, unselfish, truthful, forgiving and dedicated. However, that's where the simplicity ends. The examples and stories are both inspirational and challenging. The chapter summaries are succinct checklists to keep you on track.

These two books define leadership in terms we aren't accustomed to -- but maybe they lead us to a better way to work.

Mackay's Moral: If how you lead matters, remember: love works.

life

Moroccan Kismet: A Gentler Arab Spring

Harvey Mackay by by Harvey Mackay
by Harvey Mackay
Harvey Mackay | June 11th, 2012

In December 2010, 26-year-old Mohamed Bouazizi set fire to himself. This street vendor had been rousted and humiliated once again by Tunisian police for hawking apples and pears out of a wheelbarrow. Bouazizi ignited more than himself. His death triggered the Arab Spring, a Twitter-driven revolution that engulfed Muslim nations in the Mediterranean in 2011.

Ten nations share the sand-swirled backdrop of the Sahara Desert -- a region larger than the contiguous United States. The Sahara, where dunes can reach the height of 600 feet, has been the backdrop to much of the Arab Spring. This social earthquake has surmounted Tunisia, Egypt and Libya among others in the region. Meanwhile, the upheaval registered only modest tremors in Morocco.

I've just returned from a Chief Executives Organization tour to Morocco. Our group of 35 couples visited the country's sometime snow-capped Atlas Mountains and the metropolises of Marrakech and Casablanca. Who can forget the vintage Bogart-Bergman flick of the same name? Well, Rick's gin joint wasn't on our agenda. What we did see stirred confidence that change can be intelligently anticipated, even in tradition-rich Morocco. This land's monarchy is one of the oldest on the planet.

Executives should analyze the dynamics of the Arab Spring. It's a case study of what can befall complacent bureaucracies -- businesses included -- in the lightning-speed world of Twitter and Facebook. Morocco's course also merits study. It shows one way meaningful change can be achieved without casting an entire society into turmoil.

King Mohammed VI rules over 32 million Moroccans -- nearly all of whom are Muslim. Many once nomadic Berbers are now farmers, whereas millions of Moroccans today live in cities. Despite broad income advances, poverty remains a problem in Morocco. Mohammed VI assumed the throne in 1999 upon his father's death. The king championed greater freedoms, especially for women, and disavowed the notion that he was a "sacred" being.

My lifelong friend Sam Kaplan is the U.S. ambassador to Morocco. He's one of the very few Jewish people in that role to a Muslim nation. Sam is convinced Morocco's government is doing a solid job.

Here are six pieces of take-home value I scratched out on my napkin as our return flights wended their ways west:

-- Dig your well before you're thirsty. Small villages have been a priority, and practical issues like water and electricity have commanded center stage. If you want to avert a groundswell, plant your feet firmly in reality.

-- Act faster than expected. From the first day of his rule, the present king has already done more than his father did in a half century. Morocco's February 20 Movement barely gained traction this year. According to The Economist, "Unlike other Arab autocrats who dithered when uprisings erupted last spring, King Mohammed VI unveiled a new constitution within weeks." The challenge is empowering the people, and the new government appreciates its mission.

-- If you want to empower people, address the day-to-day tasks that keep them from using their skills. You probably guessed it; women have shouldered a disproportionate responsibility in gathering water in Morocco. This has been a significant barrier to them getting a meaningful education. Might this ring a bell for us in America? Consider how many women in our business world were still getting coffee just 20 years ago!

-- Cultivate the long view. Successfully battling infant mortality and adding 20 years to the average Moroccan's lifespan have been signal achievements. Again, increased access to a safe water supply has made a crucial difference. Marking a third birthday has become a pivotal survival milestone. Gradually, Moroccan parents are now able to take a more secure view of life.

-- Pay more attention to world powers than neighborhood bullies. Morocco has drawn a high share of American and European investment compared to neighboring countries. One reason: Its political and social agendas have each had a more practical and progressive ring.

-- Foster entrepreneurship. Long-standing allies of the West, Moroccans like Americans. They also appreciate free enterprise. Entrepreneurship and tradition flourish side-by-side in Morocco. In agriculture, the new thrust is shifting production to more profitable fruit crops. And the customer service passion we experienced from hotel staffs was awesome.

Morocco's king proves once again one person can make a difference ... but only if that one person puts the common agenda first.

Mackay's Moral: Tweets let freedom ring everywhere ... even where the king's the thing.

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