Embrace Turbulence

How many really bad things can go wrong in business in a single day? One or two? Five? Dozens? Dozens of dozens?

A key employee leaves because a spouse is offered a job a thousand miles away.

A key partner botches a supply chain handoff and your warehouse is empty ahead of an annual sale.

You discover a critical hidden formula error in one of your financial spreadsheets that even your auditors missed.

Your customer service lines light up for a problem with your competitor’s product being confused for your own.

Sound like a normal enough day?

Then why do we think of turbulence as extraordinary?

Maybe a better question is how many things can go right in a day. Sometimes if you achieve one modest success you count your blessings and call that an outstanding day! A win is the welcomed exception. Problems are the norm.

Just remember one of the key maxims in career longevity: If you’re a manager, problems are job security. If there weren’t problems in business, we wouldn’t need management. Lucky for us, huh?

I was recently talking with a colleague about his desire to offer calm to his staff after a rough few weeks. He wanted to give a talk where his message and tone signaled that the bad stuff was behind them.

I advised against it. How could he possibly know what fate might bring even later that afternoon. You never want to make a liar out of yourself with stuff you can’t control. Besides, the very notion of calm to me signals surrender.

What is the stuff you can control? Attitude, anticipation, and readiness.

It’s a question of urgency over fear. Fear in the form of debilitating anxiety may not be your friend, but urgency in the form of nimble responsiveness is always your friend. There is so little in our future that we can control, pretending it is otherwise is advancing the clock on the certainty of smack down.

Complacency lets down your guard. Predictive, proactive realism keeps you sharp at all times.

How many times have I heard hardworking but tired employees utter the phrase: “If only we can get through this [fill in the blank], we’ll be fine.”

Remember this instead: The reward for getting over a hill is the opportunity to climb another hill. There is always another this to get through. Beyond each valley is always another hill, often steeper and higher than the one behind you. That is the nature of economic cycles. That is the nature of problem-solving. Whatever you solve today may create an opportunity, but the market response to that opportunity will likely create the next problem on your plate.

It’s no different for capital and equity markets, where despite our hope for smooth sailing, volatility is the norm. That’s why for so many stock picking is a loser’s game. You’re in for all the good and bad days or you’re out.

What to do then?

Embrace turbulence before it becomes turmoil.

Make turbulence your constant companion. Celebrate small wins, but never be fooled by a quiet few hours. Once you are comfortable with the inevitability of unpredictability, your confidence level will rise. You will learn to address change because you accept the inarguable market force that change is constant.

A good sales quarter is always exciting, but as every prospectus states, past performance is no guarantee of future results. You know that like you know your boss’s ugliest shirt. Why pretend otherwise?

Did AOL fall on hard times or fail to respond to turbulence?

Did Yahoo suffer an explainable devastating blow or wander aimlessly amid turbulence?

Did Kodak get ambushed by new technology or fail to play its strongest hand in a climate of turbulence?

Each of those companies allowed turbulence to become turmoil. When turmoil escalates to the unbound, creative destruction has usually made its decision.

Think about what those implosions mean to you.

Did the last project that didn’t go your way take you down or prepare you to outperform it?

Did your last failed product launch demoralize you or teach you how to make a better product?

Are you looking for comfort in the quiet ordinary or comfort in outrageous curiosity?

Big Company Syndrome is believing your paycheck will always show up. Smart Company Syndrome is knowing you have to earn your keep every day. Doing work and adding value are not the same things.

Turbulence in business is the norm, not the exception. Companies that win do so because they surf over, around and through turbulence. They might purposefully avoid an obvious storm they can’t navigate, but they expect storms, they don’t anticipate their magical elimination.

In daily business dealings, if you know that bombs are regularly going to drop, you won’t be surprised when they do, no matter from where. If you’re a CEO or close to one, you know it’s the job of leadership to address crises, not to hope they will slink away.

Make peace with turbulence. Pace yourself for a ceaselessly bumpy endurance contest. Expect an unruly rollercoaster ride and be mildly pleased the days it doesn’t throw you from the train.

When you have one of those good days—and you will—you will appreciate it even more. Your definition of a good day may also begin to change. Mine certainly has. Stay tuned to this channel for how.

_______________

Image: Pixabay

Deadlines, The Final Frontier

Looks like we dodged a bullet.  The United States of America will not default on its debt, We The People will be allowed to borrow more money to stay current in our obligations by way of a vague deal to curb deficit spending going forward that the House, Senate, and President will find a way to stomach late in the 11th hour.  Why don’t I feel proud?

In my mind, the process for resolution which was recently described by Senator McCain as “bizarro” has been a farce of such epic embarrassment, it is impossible to comprehend as somehow reflective of our shared values.  Last minute threats and posturing and leverage and mano a mano entrenchment ignore the obvious framework of achieving a shared vision — that working relationships must continue long after the dirty work is done.  Last week in a fairly heated discussion thread about the debt ceiling on another social networking site, an astute friend of mine wrote:

…the whole situation is disappointing. No one on the national scene has really acted that well.   Should we even give them praise for negotiating?  Has it come to that–we have to praise people for doing what sensible people do?

His exasperation is well-founded, and leads me to ask again, why must we accept one set of standards of conduct for business and a different set for government?  This is especially troubling since so many people in government have spent at least some of their career working in the private sector, where market forces determine the kinds of norms of acceptability and consequence our elected officials seem to ignore.

To be clear, I am not talking about mission structure — government service is not profit minded by design, so of course decision-making is not intended to be ROI focused, that would be absurd.  We go to war because our security is at stake, it is a cost.  We fix roads and build new infrastructure because they are the backbone of our shared needs, they are cost centers paid for by taxes, they are not profit centers so boardroom discussions will always be different.  I am talking about standards of conduct, behavioral norms — like honest discussion and earnest debate and timely resolution.

Consider that last one for a moment: timely resolution.  Anyone who has ever worked on a project knows the meaning of the term deadline.  Anyone who has ever taken a class knows that the date does not move for the final exam.  Anyone who has ever paid a bill knows that the due date is not negotiable, miss it and you pay a penalty out of your pocket and potentially suffer a credit score impact.  Anyone who owes a balance on their taxes knows that April 15 is not negotiable — it’s not magical, it’s just not negotiable, it is the law.  Although deadlines appear to be abstracts — fictitious creations of human imagination imposed as structure on others to compel action — deadlines are part of life.  They are real.  We learn as children to address them and as adults to manage them, or we suffer the consequences personally and professionally.

Deadlines teach us to manage two of the great success factors of businesses and careers: timeliness and urgency.  Timeliness means just that, occurring at a suitable or opportune time — being appropriately on time according to expectation and need.  Urgency is the competitive advantage of not being satisfied with timeliness, getting ahead of the curve so that winning is more possibly in reach by better applied and more efficient use of time to create distance ahead of the competition.

What can we learn from government with respect to timeliness and urgency? Does government consider these to be core values, even expectations of government’s viability?  Does government consider timeliness and urgency as Nice-to-Have or Must-Have?  We observe their philosophical commitment in their actions.  My sense is, there is not much here worth emulating.  If anything, government process is the antithesis to lessons a good business understands — and that includes leaving big blocks of time for rigorous review.

Our elected officials for whatever reason simply do not seem to take the notion of deadlines as seriously as the rest of us.  In some ways, a lack of respect for deadlines is the very notion of an entitlement culture — if you do what is expected, you get paid, and if you don’t do what is expected, you still get paid, right up until you get thrown out by the voters.  When you get thrown out by the voters, you get a pension.  Perhaps we are seeing the reason why deadlines don’t seem to matter in the halls of Washington.

Perhaps the reason our government has become so dysfunctional is because we have allowed it to be so.  In the working world, there are rules, and if you violate them, there are consequences.  In elected office there only seem to be two rules:

1) Don’t be party to a scandal that your opponents can manipulate to your demise.

2) Get elected, then reelected.

Pretty much everything else seems to be forgivable.  A missed deadline is a missed deadline.  Since there is no profit motive, there is no personally assessed penalty.  That’s just wrong.  It lacks humility.

Bosses are often accused of setting arbitrary deadlines.  What is the difference between an arbitrary and real deadline?  Not much, really.  If the boss sets a schedule and declares that milestones must be accomplished according to the schedule, there is usually nothing empirical or even mythical about the published dates — well, maybe the December holidays for retail, or similarly calendar driven events.  Most deadlines are made up, they are criticized and chastised and the stuff of Dilbert moments — but imagine a business enterprise without them.  Someone has to be Dilbert.  Someone has to create urgency.  Urgency combined with innovation are the stuff of success, creativity combined with timely delivery are the stuff of investment payoffs.

Most of us hate deadlines, but we all know they drive us to make hard decisions sooner, get past analysis paralysis, come together as teams and deliver.  Deadlines are the stuff of anger and stress and resentment — and the stuff of competition and collaboration and reward.  We hate them, but we embrace them, because we aren’t given a choice.  Arbitrary or organic, deadlines make us get stuff done to the best of our ability given the time allotted, and with some success, we then often get the chance to come back later and improve on our progress.  Deadlines are motivation and measurement, realities we learn to meet as challenges.  That’s why bosses set “arbitrary” deadlines — because timeliness is an expectation for compensation, and urgency is often a path from good to great.

I am not a big fan of rules just to have rules, but as a boss, I have to insist on a few or work does not get done and value is not created.  Deadlines are sometimes extended or forgiven for good reasons, but anyone who has worked in a high performance environment knows not to take forbearance for granted.  An occasional exception for truly improved work or some extenuating circumstance?  Of course, that’s possible.  The same rotten outcome I could have had yesterday a week from tomorrow?  Not a chance.

Just hitting a date with no breathing room and a lousy set of deliverables is not making a deadline, it is surrendering to mediocrity and living to play another day.  If that is allowable process, dysfunction has triumphed over reason.  It’s not urgency, and it’s not okay.  In business, you would likely get fired for it, or your business would go under.

Urgency is hard.  Urgency is a factor in competitive advantage.  Urgency matters.