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Jensen Consulting Blog
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September 3, 2010 Written By: Russell Jensen I had to laugh last week when a long time client pounded his desk and loudly exclaimed “I am wasting a perfectly good recession!” “Luke” (not his real name) got my attention. He was thinking specifically about failing to make some difficult staffing decisions during the downturn. His reasoning is pretty typical for a small town employer; I see these people in church, I know their families and their personal situations, and it is still harder for me to let them go than to “accommodate” them. I couldn’t stop thinking about Luke’s comment that day, so I fired off an email to a number of clients and business acquaintances and asked them if they were wasting a perfectly good recession, and if so, how? Apparently that was an interesting question, because I was peppered with responses almost instantly. My phone rang within seconds of sending the email, and it was my client “Scott” (not his real name) calling. “Which of my senior people have you been talking to? Some of them have been telling me that exact same thing!” He went on to tell me he knows he has some senior people the company has outgrown and he really needs to address that situation, but he just can’t bring himself to do it. What’s interesting is that several of his key people are putting more pressure on him, holding him accountable for leading and making the hard decisions.
Responses to my question fell into two clear camps. A frustrated “yes, we are wasting this opportunity” and a quiet “no, we’ve taken some actions we otherwise might not have.” Here are some of the responses.
Yes, we are wasting a perfectly good recession
It is interesting to note that key leaders in both of these businesses are not on the same page regarding these issues.
No, we’ve taken some actions we otherwise might not have
And, as you figure out to which camp you belong, I’ll leave you with a final thought. One business leader sent this thoughtful response that echoes what we are hearing from others throughout the course of our client work.
He wrote:
”I get the feeling that some companies use the recession as an excuse to do what a good manager should have done in the first place – staff efficiently, manage performance, manage supplier costs, etc. Worse yet, I wonder how many firms eliminated salary increases, stopped 401K matches, reduced staffing without business justification only to pump short term profits but with the recession as an excuse. Reducing costs to increase profits or in response to a downturn in revenues is a perfectly good thing, presuming that it is sustainable or if the short term benefit (survival) can justify the long term impact on the organization. But, to blame “the recession” for management’s actions is just lazy management. Your employees and customers will see through the insincerity and won’t be there when you really need the help.” August 27, 2010 Written By: Eileen Wixted, Guest Blogger “I just want to get my life back .” These words were heard around the world just seconds after leaving the lips of BP Chief Executive Officer, Tony Hayward. Whether Mr. Hayward’s comments were intentional, or the result of his exhausting schedule managing the Deepwater Horizon crisis, is not known. Frankly, it doesn’t matter. In today’s age of instant communication where a random thought can define your leadership ability – managing your communication risk is a business necessity.
Most senior executives will never have to manage an actual oil spill. But there are multiple “oil spills” that have the potential to impact your credibility, career or company’s brand. One of the biggest pitfalls in assessing communication risk is being too optimistic. We call this syndrome: fatal optimism. The leak isn’t that big, the clean-up will go more quickly, customers will be more forgiving.
Not true.
Set expectations and be realistic. Challenge your senior team’s assumptions. How do you know the security breach is limited to only one-thousand customers? Be vigilant about asking questions.
All too often we want to believe the best, it makes us feel better. But in business, just as in real life the best case scenario is not always reality.
What you don’t know will hurt you.
In all business issues there is a category of information we simply do not know. The current salmonella outbreak and massive recall of eggs is a good example of new details adding problems to the credibility of the farm owner, regulators, and food industry as a whole.
The farm owner has been characterized as a habitual offender – why has he been able to stay in business? Why have new tougher food safety regulations not been implemented? All too frequently, the more you learn the worst it gets.
This means as a senior leader you must lead the communication efforts. You must be vigilante about developing a few core messages and communicating to multiple audiences in real time. In today’s age of instant communication you must exercise message and medium discipline.
Your career may count on it.
If you would like to learn more about how to manage your communication risk join us for “What’s Your Oil Spill” an informative workshop on crisis communication for senior leaders. The program will be held on September 10, 2010 at Glen Oaks Country Club, West Des Moines, Iowa. We are slated to begin at 7:30 a.m. and wrapped up by 11:30 a.m. If you have questions please feel free to email me Eileen Wixted at ewixted@wpntworld.com. August 20, 2010 Written By: Michelle Clark, Ph.D. One of the biggest challenges of a family business is managing competing values. The table below describes some of the competing values between the family system and the business system. In the family system, effort counts. For example, in a family, how hard a family member tries typically is more important than the quality of their performance. Decisions about inheritance are often based on treating children equally. In a business system, performance counts and rewards are based on results. In a family business where one family member’s performance exceeds another’s, this can create values conflict around succession and compensation. For example, a savvy business succession strategy might be to center the highest percentage of business ownership with the most competent successor. A family inheritance strategy would normally be to divide assets equally among all children.
Differences Between Family and Business Values
So, what are the strategies for dealing with values conflict in your family?
First, the more your organization can agree to family business policies in advance of the values conflict, the better. One example of planning in advance might be a family compensation policy that identifies how salary decisions are made and how raises are decided upon. Second, avoid demonizing family business members who protect the values of the business over the family or vice versa. Both the family and the business are important. People who identify and champion the values of either have something valuable to add to the conversation.
Always shoot for the win-win.  Family Business Succession Planning Business Values Family Vaules Michelle Clark Ph.D. Conflict Resolution Previously...
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