When in-between jobs and preparing for your next career, make amends for the sacrifices of the last one.
Write It Down
Make a personal journal of your transition experience. Keep track of daily events and observations that may result in new opportunities for you. What job postings or recommendations got your attention each day? Keep clippings from newspapers and printed copies of lists or reference information from web sites in an organized manner so this information is readily available at your fingertips. Treat this information gathering as your own research project. As you investigate, more opportunities will become available to you. Don't lose an opportunity simply because you lost track of it.
Get Connected
Network like your income depended on it! That means reaching out to friends, former colleagues, and even former competitors. It means that the time that you spent investing in your company and your reputation will pay dividends.
There are many ways to work with your network. Social networking sites can be either helpful or harmful. LinkedIn helps to maintain professional relationships, keep track of former colleagues as they move from one company to another, and meet professionals with similar group interests. LinkedIn also offers an invaluable tool for sharing endorsements and testimonials. Giving and receiving endorsements with the online utility is a tremendous way to provide an immediate reference, and to demonstrate your own connection with similar respected professionals. It is common to use LinkedIn endorsements as references attached to resumes, making the job of checking references very easy for recruiters and human resource professionals. Giving endorsements is a way to demonstrate your personal connection to a respected peer, and often results in a similar favorable response.
Social networking can be harmful when the social aspect of the online community demonstrates habits or characteristics which may not be desired by potential employers. There are a multitude of incidents in which individuals have lost job opportunities, and lost jobs, as a direct result of pictures and comments posted on social networking sites. While it may be all in good fun to post pictures or comments of friends and family in various embarrassing situations, there are many employers that now use these online references to determine how a potential candidate's behavior may reflect on the organization. It is a great opportunity for a company to avoid hiring a potentially embarrassing candidate by discovering the embarrassing content that is already available on the world-wide-web. Treat your friends and online social contacts with courtesy and respect, and ask for the same considerations in return.
Variations of Your Theme
Make a variety of versions of your resume. When submitting your resume, make sure that it matches the job opening and contains many of the same keywords. It is a common mistake to work diligently to create the one perceived perfect version of your resume. You may toil for days to get all of the information and details sorted in the manner that you believe are the best representation of your talents and experiences. In reality, the individuals at most companies are not interested in finding the candidate with the most impressive resume, but those hiring individuals are interested in finding the candidate that is best suited to fill the responsibilities of the position. That means that it is far more important for your resume to fit the needs of the position than for your resume to fit your own needs.
Start with a version of your resume and then make several variations on your theme. When preparing to submit your resume for a particular position, read the job description very carefully and highlight the pertinent keywords. Then, review your resume and your real personal experience to identify how those keywords relate to your previous work experience. Try to use those keywords in describing your own achievements, and create a version of your resume that is tailored specifically for the open position. Make sure that you keep a copy of that version of your resume, perhaps even name the document with the name of the company and position for which you wish to interview. When your opportunity to interview arises, be sure to review your customized resume and take a copy with you.
Before the Interview
Before going on an interview, study the company history, mission statement, and culture. Study the company competition. Why are they filing this position? Be prepared to have an intelligent conversation about the company and the position. Be prepared to present your ideas regarding how your experience and capabilities will contribute to achieve the goals of the company. Identify the key strengths from your resume that you think may have caught the attention of the interviewer, and be prepared to discuss them in detail. Prepare questions about the company, culture, and the other people in the area of responsibility. It is not enough to fill the position with your personal attributes and to be the right person for the job, but you must also be the right person to fit in the mix of the other personnel who are already in the organization. Prepare yourself to be that person.
Do It Now
Do something positive for yourself. When you were actively working at your position, there were many things that you probably wished you could do if you only had the time. Guess what, now you have the time! Do you remember how you always wanted to lose weight and get in shape, but you were always too busy to go for a walk or do a little exercise? Do you remember those books that you thought would be good to read, but you never had the peace and quiet to sit down with them? Do you remember how much you wish that you had time to complete that project around the house? Sure, it may be hard to get the energy and enthusiasm to get yourself started on any of those things right now. You have the time, and your excuses are gone, but you don't feel the desire to start doing them right away. Is that the case with you? What's wrong with this picture? Go do it, and start today! You will be amazed at how much this simple act of personal courage can change your life. Use the time that you have now to do those things that you always wanted to do, and then when your next career starts to consume your time, you will discover that you can always preserve the time that you need to do these projects. Once you start to exercise, you will always find time for it. Once you start to read or do projects around the house, you will discover that working will not get in the way of doing those things again. This is your chance to make a tremendous change in your life. Don't miss out on this opportunity.
Do It for Someone Else
Just as you make time to do something for yourself, make time to do something special for someone else. This could be calling an old acquaintance to renew a friendship. This could be contacting a former colleague to offer assistance or encouragement to them during the job hunt and career transition. This could be volunteering to help at a community event, or making a contribution to a special cause. Act as a consultant, volunteer your services, or share your experience with a former colleague. Whenever possible, use your talents, experience, and capabilities to help others. You may be waiting for your next employer to apply your skills, but you can keep them sharp by using them to help other individuals or organization in the interim. Volunteer a portion of your time to apply your skills and in the process everyone is rewarded.
______________________________________________________
Words of Wisdom
"More than any other time in history, mankind faces a crossroads. One path leads to despair and utter hopelessness. The other, to total extinction. Let us pray we have the wisdom to choose correctly."- Woody Allen
"In theory, there is no difference between theory and practice; In practice, there is."- Chuck Reid
"If you limit your choices only to what seems possible or reasonable, you disconnect yourself from what you truly want, and all that is left is a compromise.”- Robert Fritz
______________________________________________________
Sunday, March 29, 2009
New Release for The eBook Store from Sony, The Trusted Advocate by John Mehrmann and Mitch Simon
Visit the eBook Store from SONY to download the latest award winning book, The Trusted Advocate: Accelerate Success with Authenticity and Integrity, by John Mehrmann and Mitchell Simon.
Orange County, CA (EBINews) March 29, 2009 – The award winning book, The Trusted Advocate: Accelerate Success with Authenticity and Integrity is available as an electronic book for the SONY eBook Reader.
The Trusted Advocate: Accelerate Success with Authenticity and Integrity is empowering individuals to overcome challenges, eliminate objections, and supercharge careers. In an era with global economic change, jobs in transition, and organizations searching for survival, The Trusted Advocate is a compelling compass to personal achievement and ultimate financial success.
“John Mehrmann is the greatest sales person I have ever worked with, yet in reality, he is not a sales person at all. His ethical, honest, caring approach allows him to find areas that he can help you, while not asking for your business. You just want to work with someone like him.” – Michael Moore
“Reading The Trusted Advocate was a real déjà vu experience for me because it captured every situation that I personally experienced and often struggled with in representing my customers and the companies that I worked for. The practical approaches and solutions in Trusted Advocate provide clear, explicit, and factual examples of how to address the strategic and tactical issues that often crop up when the need exists to be a company loyalist and customer advocate while maintaining personal integrity and providing a win, win solution for both constituents being represented.” – Barnes & Noble Reader Endorsement
“John Mehrmann is an amazing talent, but more importantly, an amazing person. He is rich in experience and talent, and is eager to share. He is a born leader and teacher, and I thank him for writing The Trusted Advocate. He truly lives his words, and reading The Trusted Advocate was like reading the manual to his success!" – Jessica Joyce, Global Account Manager
“John Mehrmann is the epitome of professionalism. His communication skills surpass anyone I have ever had the pleasure to conduct business with. He is a wonderfully positive individual go radiates warmth, kindness, fairness -- all in combination with being a truly great human being. He is also highly intelligent blended with common sense approaches. I highly endorse John to one and all!" – Marcia Sanguinetti, Fujitsu Computer Systems Corporation
The Trusted Advocate: Accelerate Success with Authenticity and Integrity received the Editor’s Choice Award and the Publisher’s Choice Award for excellence. This incredible book is available online from Amazon, Barnes & Noble, Borders, and many booksellers around the globe.
To purchase the SONY eBook Reader version of The Trusted Advocate, simply visit The eBook Store from SONY and follow the instructions to download an e-book version.
For more reader reviews, chapter summaries, excerpts from the book, and a list of international booksellers, please visit www.TheTrustedAdvocate.org
Orange County, CA (EBINews) March 29, 2009 – The award winning book, The Trusted Advocate: Accelerate Success with Authenticity and Integrity is available as an electronic book for the SONY eBook Reader.
The Trusted Advocate: Accelerate Success with Authenticity and Integrity is empowering individuals to overcome challenges, eliminate objections, and supercharge careers. In an era with global economic change, jobs in transition, and organizations searching for survival, The Trusted Advocate is a compelling compass to personal achievement and ultimate financial success.
“John Mehrmann is the greatest sales person I have ever worked with, yet in reality, he is not a sales person at all. His ethical, honest, caring approach allows him to find areas that he can help you, while not asking for your business. You just want to work with someone like him.” – Michael Moore
“Reading The Trusted Advocate was a real déjà vu experience for me because it captured every situation that I personally experienced and often struggled with in representing my customers and the companies that I worked for. The practical approaches and solutions in Trusted Advocate provide clear, explicit, and factual examples of how to address the strategic and tactical issues that often crop up when the need exists to be a company loyalist and customer advocate while maintaining personal integrity and providing a win, win solution for both constituents being represented.” – Barnes & Noble Reader Endorsement
“John Mehrmann is an amazing talent, but more importantly, an amazing person. He is rich in experience and talent, and is eager to share. He is a born leader and teacher, and I thank him for writing The Trusted Advocate. He truly lives his words, and reading The Trusted Advocate was like reading the manual to his success!" – Jessica Joyce, Global Account Manager
“John Mehrmann is the epitome of professionalism. His communication skills surpass anyone I have ever had the pleasure to conduct business with. He is a wonderfully positive individual go radiates warmth, kindness, fairness -- all in combination with being a truly great human being. He is also highly intelligent blended with common sense approaches. I highly endorse John to one and all!" – Marcia Sanguinetti, Fujitsu Computer Systems Corporation
The Trusted Advocate: Accelerate Success with Authenticity and Integrity received the Editor’s Choice Award and the Publisher’s Choice Award for excellence. This incredible book is available online from Amazon, Barnes & Noble, Borders, and many booksellers around the globe.
To purchase the SONY eBook Reader version of The Trusted Advocate, simply visit The eBook Store from SONY and follow the instructions to download an e-book version.
For more reader reviews, chapter summaries, excerpts from the book, and a list of international booksellers, please visit www.TheTrustedAdvocate.org
Sunday, March 22, 2009
Coping with Career Change
Lost your Job? Experiencing a sudden or unexpected career change? Worried about your future?
The emotional response to career change is similar to dealing with loss as characterized by Kubler-Ross.
Denial
There are typically two stages of denial that occur with sudden or unexpected career transitions. The first stage is typically very brief. There may be a short suspension of belief in which it is hard to imagine that you no longer have that job. The facts are pretty hard to deny, the position was there one day and you were gone the next day. Regardless of the circumstances, it is fairly difficult to deny when this fact when that door has been closed.
The second and more dangerous period of denial occurs when lifestyle is not altered, even though the income has changed. In many cases, denial is subsidized by a severance package, a golden parachute, or unemployment benefits. The employer no longer provides the ongoing checks or benefits coverage, but the income if otherwise subsidized and therefore lifestyle if not substantially altered. This form of denial can be very dangerous and should be quickly resolved. With time the severance package, unemployment benefits, or personal savings will start to diminish and eventually run dry. It is difficult to predict exactly when the next position or career will create a new source of income, and it is difficult to determine how the compensation and benefits will compare to previous position. When the change occurs, it is a very good time to begin assessing your financial responsibilities and expenses.
Each month as the credit cards statements, rent or mortgage, and other expenses arrive, use that as an opportunity to evaluate the necessity of the expenses that you incur. It is a common habit that expenses grow in proportion to an individual's ability to support the expenses. Clothes, cars, and eating habits are examples of expenses that easily adjust with a person's ability to sustain the expense. Subscriptions, hobbies, and miscellaneous expenses are often forgotten or disguised personal expenses. Every time that you pay an invoice, consider how that costs compares to your personal hierarchy of needs and how you can be a little more frugal in your expenditures. If you can reduce your expenses now, it will continue to bear fruit, even when your income is restored.
Anger
It is natural to be angry when events impact a person's routines. It is natural to feel anger when events interrupt an individual's ability to support a family or otherwise jeopardize financial responsibilities. It is natural, but is it productive? If the career change is due to personal lack of performance on the job, then there is nobody to blame but yourself. If the career change is due to financial hardship by the company, thereby resulting in overall job reductions, then there is nobody to blame at the company that is also struggling to survive. Organizations have a responsibility to support clients, customers, shareholders, and the remaining employees to the best of the ability of the company. Whatever the cause of the career change, the natural responses of anger and frustration lack direction and therefore offer no source of consolation.
Do you feel the energy that comes from frustration, anger, or enthusiasm? Emotions charge the body with adrenaline and create energy. Even negative emotions like frustration, anger, or worry can create an emotional charge that can be redirected into positive energy. If you sit still and let negative emotions take control, then you may find yourself drowning in continuous waves of negative thoughts and concerns. Rather than slip into depression or self-pity, use that energy to give you incentive to concentrate on positive projects. For example, invest your energy in reworking your resume. Begin making lists of opportunities and invest your time in researching companies that are showing positive growth. Start educating yourself on other aspects of your industry or profession. Use that energy that makes you shake with frustration to put your fingers to work on the keyboard, flipping pages, or dialing phone numbers. If you still have energy left over after you have worked every possibility, then go for a walk and release that energy with some positive exercise.
Depression
The hunt for your next career position may take some time. Economic challenges may restrict the job market and create seemingly overwhelming competition for a limited number of positions. Constant concerns, coupled with a sense of responsibility, can create fertile grounds for depression. If you feel this happening to you, remember that it is a choice and you have control over it. Depression occurs when you allow yourself to feel remorse because events and timelines are not occurring according to your plans. This does not mean that the forces of the universe are working against you, but it could be a strong indication that it is time to change your plans. Sometimes it is necessary to abandon your plans completely and pause to properly evaluate the options available to you. This may mean changing your lifestyle, changing your career, or allowing yourself to take an intermediate transition in another direction. Allow yourself the flexibility to adapt to the situations and opportunities that are available to you. This does not mean that you are settling for less than your full potential, but it does mean that you have the self-confidence to allow yourself to expand your talents and experience in previously unexpected areas. Allow yourself the flexibility to abandon or temporarily shelf those expectations that are causing your depression and give yourself the freedom to adjust your career or lifestyle to take advantage of what is available to you at the moment. When it seems that you cannot make any progress in the direction that you are going then allow yourself to move in the direction that gives your life momentum.
Bargaining
Once you have overcome denial and accepted the sometimes life-altering changes to control your expenses, and after you have overcome or bypassed the feelings of anger or depression, it is natural to begin a process of personal bargaining. This phase is the internal conflict of balances wants and needs with reality and resources. It is a process of justifying small concessions for the greater good. It means offsetting minor sacrifices by placating yourself with some rational of purpose or personal reward.
The process of internal bargaining can be a positive process if it means an awakening realization of the positive outcome of your decisions and actions in contrast to the investment of selective sacrifice. However, it is very important to consider the long term commitment associated with such bargaining. If the sacrifices are worth the return of a lasting career or long term relationship, then it is merely an acknowledgement of personal investment. If the sacrifice results in ethical conflicts or may otherwise require sustained commitment that you are not willing or able to make, then the bargain lacks substance and is doomed to failure. Do not negotiate commitments that you are unwilling or unable to sustain, not even to yourself.
Acceptance
Welcome to the club! There are millions of individuals experiencing various stages of career transitions. You are not alone and you are not really competitors. Each person is looking for the next opportunity to match personal talents and capability with the appropriate corresponding position. Likewise, organizations are searching for the most appropriate candidate in accordance with the job requirements. It is not a competition or a popularity contest. It is a giant puzzle in which all of the pieces are trying to find the perfect fit. As you look for your next opportunity, help those in your network to do the same. If you find a position that is suitable for someone else who is in career transition, take the time to make a recommendation and help good people discover good organizations. Helping others in your fellow career transitioning tribe may encourage them to help one another, and inspire them to help you too. Even if the favors are not returned, you will have the personal satisfaction of helping others.
Once you have accepted that your life has changed, there are countless new opportunities that are open to you. Be ready for new experiences and be prepared for more unexpected challenges. The experiences are all part of the learning process. You could have spent countless months or years in the rut of your routine, but you have been given an unexpected opportunity to apply your talents and experience in new ways. You have been given a personal invitation to expand your capabilities and to meet new friends. It can be unsettling when it is unexpected, but you can use this is an opportunity to invest in yourself and in your future.
______________________________________________________
Words of Wisdom
"'There's new energy to harness, new jobs to be created, new schools to build, and threats to meet, alliances to repair. The road ahead will be long. Our climb will be steep. We may not get there in one year or even in one term. But, America, I have never been more hopeful than I am tonight that we will get there. I promise you, we as a people will get there. There will be setbacks and false starts. There are many who won't agree with every decision or policy I make as president. And we know the government can't solve every problem. But I will always be honest with you about the challenges we face. I will listen to you, especially when we disagree. And, above all, I will ask you to join in the work of remaking this nation, the only way it's been done in America for 221 years — block by block, brick by brick, calloused hand by calloused hand."- Barack Obama, Election Night Speech
"If government could create jobs and raise children, socialism would have worked."- George Gilder
"Emergencies have always been necessary to progress. It was darkness which produced the lamp. It was fog that produced the compass. It was hunger that drove us to exploration. And it took a depression to teach us the real value of a job.”- Victor Hugo
______________________________________________________
The emotional response to career change is similar to dealing with loss as characterized by Kubler-Ross.
Denial
There are typically two stages of denial that occur with sudden or unexpected career transitions. The first stage is typically very brief. There may be a short suspension of belief in which it is hard to imagine that you no longer have that job. The facts are pretty hard to deny, the position was there one day and you were gone the next day. Regardless of the circumstances, it is fairly difficult to deny when this fact when that door has been closed.
The second and more dangerous period of denial occurs when lifestyle is not altered, even though the income has changed. In many cases, denial is subsidized by a severance package, a golden parachute, or unemployment benefits. The employer no longer provides the ongoing checks or benefits coverage, but the income if otherwise subsidized and therefore lifestyle if not substantially altered. This form of denial can be very dangerous and should be quickly resolved. With time the severance package, unemployment benefits, or personal savings will start to diminish and eventually run dry. It is difficult to predict exactly when the next position or career will create a new source of income, and it is difficult to determine how the compensation and benefits will compare to previous position. When the change occurs, it is a very good time to begin assessing your financial responsibilities and expenses.
Each month as the credit cards statements, rent or mortgage, and other expenses arrive, use that as an opportunity to evaluate the necessity of the expenses that you incur. It is a common habit that expenses grow in proportion to an individual's ability to support the expenses. Clothes, cars, and eating habits are examples of expenses that easily adjust with a person's ability to sustain the expense. Subscriptions, hobbies, and miscellaneous expenses are often forgotten or disguised personal expenses. Every time that you pay an invoice, consider how that costs compares to your personal hierarchy of needs and how you can be a little more frugal in your expenditures. If you can reduce your expenses now, it will continue to bear fruit, even when your income is restored.
Anger
It is natural to be angry when events impact a person's routines. It is natural to feel anger when events interrupt an individual's ability to support a family or otherwise jeopardize financial responsibilities. It is natural, but is it productive? If the career change is due to personal lack of performance on the job, then there is nobody to blame but yourself. If the career change is due to financial hardship by the company, thereby resulting in overall job reductions, then there is nobody to blame at the company that is also struggling to survive. Organizations have a responsibility to support clients, customers, shareholders, and the remaining employees to the best of the ability of the company. Whatever the cause of the career change, the natural responses of anger and frustration lack direction and therefore offer no source of consolation.
Do you feel the energy that comes from frustration, anger, or enthusiasm? Emotions charge the body with adrenaline and create energy. Even negative emotions like frustration, anger, or worry can create an emotional charge that can be redirected into positive energy. If you sit still and let negative emotions take control, then you may find yourself drowning in continuous waves of negative thoughts and concerns. Rather than slip into depression or self-pity, use that energy to give you incentive to concentrate on positive projects. For example, invest your energy in reworking your resume. Begin making lists of opportunities and invest your time in researching companies that are showing positive growth. Start educating yourself on other aspects of your industry or profession. Use that energy that makes you shake with frustration to put your fingers to work on the keyboard, flipping pages, or dialing phone numbers. If you still have energy left over after you have worked every possibility, then go for a walk and release that energy with some positive exercise.
Depression
The hunt for your next career position may take some time. Economic challenges may restrict the job market and create seemingly overwhelming competition for a limited number of positions. Constant concerns, coupled with a sense of responsibility, can create fertile grounds for depression. If you feel this happening to you, remember that it is a choice and you have control over it. Depression occurs when you allow yourself to feel remorse because events and timelines are not occurring according to your plans. This does not mean that the forces of the universe are working against you, but it could be a strong indication that it is time to change your plans. Sometimes it is necessary to abandon your plans completely and pause to properly evaluate the options available to you. This may mean changing your lifestyle, changing your career, or allowing yourself to take an intermediate transition in another direction. Allow yourself the flexibility to adapt to the situations and opportunities that are available to you. This does not mean that you are settling for less than your full potential, but it does mean that you have the self-confidence to allow yourself to expand your talents and experience in previously unexpected areas. Allow yourself the flexibility to abandon or temporarily shelf those expectations that are causing your depression and give yourself the freedom to adjust your career or lifestyle to take advantage of what is available to you at the moment. When it seems that you cannot make any progress in the direction that you are going then allow yourself to move in the direction that gives your life momentum.
Bargaining
Once you have overcome denial and accepted the sometimes life-altering changes to control your expenses, and after you have overcome or bypassed the feelings of anger or depression, it is natural to begin a process of personal bargaining. This phase is the internal conflict of balances wants and needs with reality and resources. It is a process of justifying small concessions for the greater good. It means offsetting minor sacrifices by placating yourself with some rational of purpose or personal reward.
The process of internal bargaining can be a positive process if it means an awakening realization of the positive outcome of your decisions and actions in contrast to the investment of selective sacrifice. However, it is very important to consider the long term commitment associated with such bargaining. If the sacrifices are worth the return of a lasting career or long term relationship, then it is merely an acknowledgement of personal investment. If the sacrifice results in ethical conflicts or may otherwise require sustained commitment that you are not willing or able to make, then the bargain lacks substance and is doomed to failure. Do not negotiate commitments that you are unwilling or unable to sustain, not even to yourself.
Acceptance
Welcome to the club! There are millions of individuals experiencing various stages of career transitions. You are not alone and you are not really competitors. Each person is looking for the next opportunity to match personal talents and capability with the appropriate corresponding position. Likewise, organizations are searching for the most appropriate candidate in accordance with the job requirements. It is not a competition or a popularity contest. It is a giant puzzle in which all of the pieces are trying to find the perfect fit. As you look for your next opportunity, help those in your network to do the same. If you find a position that is suitable for someone else who is in career transition, take the time to make a recommendation and help good people discover good organizations. Helping others in your fellow career transitioning tribe may encourage them to help one another, and inspire them to help you too. Even if the favors are not returned, you will have the personal satisfaction of helping others.
Once you have accepted that your life has changed, there are countless new opportunities that are open to you. Be ready for new experiences and be prepared for more unexpected challenges. The experiences are all part of the learning process. You could have spent countless months or years in the rut of your routine, but you have been given an unexpected opportunity to apply your talents and experience in new ways. You have been given a personal invitation to expand your capabilities and to meet new friends. It can be unsettling when it is unexpected, but you can use this is an opportunity to invest in yourself and in your future.
______________________________________________________
Words of Wisdom
"'There's new energy to harness, new jobs to be created, new schools to build, and threats to meet, alliances to repair. The road ahead will be long. Our climb will be steep. We may not get there in one year or even in one term. But, America, I have never been more hopeful than I am tonight that we will get there. I promise you, we as a people will get there. There will be setbacks and false starts. There are many who won't agree with every decision or policy I make as president. And we know the government can't solve every problem. But I will always be honest with you about the challenges we face. I will listen to you, especially when we disagree. And, above all, I will ask you to join in the work of remaking this nation, the only way it's been done in America for 221 years — block by block, brick by brick, calloused hand by calloused hand."- Barack Obama, Election Night Speech
"If government could create jobs and raise children, socialism would have worked."- George Gilder
"Emergencies have always been necessary to progress. It was darkness which produced the lamp. It was fog that produced the compass. It was hunger that drove us to exploration. And it took a depression to teach us the real value of a job.”- Victor Hugo
______________________________________________________
Sunday, March 8, 2009
T-Ball Lessons
Watching children at play offers valuable lessons for adults.
Many years ago I had the privilege of being a coach for my son's t-ball team. For those who may be unfamiliar with the term t-ball, it refers to a form of baseball for beginners. The main principles of baseball apply. There is a first base, second base, third base, and home plate. There is an infield and an outfield with all of the same positions. There is a pitcher’s mound that is occupied by a player, but the pitcher does not pitch. The baseball is placed on a short pole that is referred to as a "tee". The tee is very similar to an enlarged golf tee, with the notable exception that it rests on a rubber mat as opposed to being pushed into the ground. The baseball is placed on the tee and the young batter gets three swings to hit the ball and, if successful, attempts to run to first base before being tagged out.
The game of t-ball provides an excellent opportunity to teach children the fundamentals of baseball and to participate in a team environment. Watching a successful baseball team is like watching the harmony emerging from a well rehearsed symphony orchestra. The players are aware of respective roles, placement, responsibilities, and the importance of well choreographed coordination with other players. Individual players may be exceptionally talented, but success can only be achieved if that talent is properly integrated with the abilities of the other players. A perfect throw can only be achieved if there is someone to catch. It is as simple as that. For youthful beginners, achieving such harmonious rhapsody of coordination requires a little patience.
An early challenge for first year t-ball players is to learn the rules of the game and position on the field. There is very little or no scientific method to assigning positions in the first year. There are no scouting reports. There are no tryouts. There are no t-baseball cards with statistics and profiles.
Watching the children take their positions on the field, I could not help but imagine how personalities and character are well defined at such an early age. The actions, decisions, and responses of the youth on the baseball field could easily be compared with characteristics displayed by adults. I wondered how much of the personalities of my colleagues had been displayed at such an early age, and how similar mannerisms in the office would be similarly evident if those individuals donned baseball caps and took their corresponding places on the field.
The pitcher stared intently at the batter. Leaning forward at the waist, one hand tucked firmly behind his back as if hiding a knuckleball, the boy clenched his teeth and glowered at the batter. Evidently the pitcher had watched some baseball games and accurately mimicked the facial expressions of a professional. Lacking chewing tobacco or a large wad of gum, the pitcher pushed his bottom lip forward with his tongue. His protruding left cheek and lower added to the intensity of his concentration. He had come prepared to play ball.
The boy on first base stood upright. His arms dangled loosely at his sides. His gloved hand bounced up and down alternately in front and behind him. His other hand adjusted his cap, scratched a runaway itch, and adjusted his cap once more. Each time that the batter prepared a swing, the boy on first base would immediately jump into action. As the bat swung forward, the boy at first base squatted at the knees as if to prepare for something. He was prepared for anything, even though he had no idea what to expect. Ready to protect his base, or chase the ball, or chase the batter. You could tell from the look in his eyes that he was ready to respond, even if he did not yet know what to expect or what was expected of him.
Two young girls had gladly accepted the responsibilities for second base and shortstop. The proximity of the positions on the field made it convenient for them to socialize. As the batter approached the tee with grim determination, the girls giggled and whispered to each other about the latest fashion accessories and the silliness of the boys on the team. Little faces, slightly shielded by the big baseball gloves, could not disguise the chorus of laughter and the tiny fingers that pointed at the boys who took the game so seriously. The girls stood shoulder to shoulder. Their legs crossed below the knees, slightly turning side to side, and occasionally extending their arms above their heads to complete tiny pirouettes. They were completely content to be at the center of the field and the center of attention, both fully aware and completely impervious to the stares of the other players.
The young lad on third base stared at the stands and waved to his parents. His glove tucked neatly under his arm, it was rarely on his hand. Being on third base, the lad did not expect to see any action, at least not until after a runner had passed first and second bases. The time for a runner to make it halfway around the diamond was more than enough time for him to put on his glove, or at least so he thought. Having a position so close to the bleachers made it easy for him to entertain the crowd. One moment standing still and searching the faces of the attendees for an attentive audience, and the next moment dancing a small jig around third base. He was the star of his own show, infrequently looking over his shoulder to make sure that his own team was still on the field with him.
Then there was the outfield. The outfield is a very special place in baseball. Despite the fact that in t-ball the ball is placed on an immobile stick, a pedestal at the throne of the batter, the players in the outfield did not expect to get very much challenge. As they each walked away into the calm seclusion of the open field, they quietly enjoyed a lack of expectation. Center field laid down on the ground, arms and legs crossed comfortably. Center field's glove was propped under his head like a pillow. Meanwhile, right field and left field were sitting cross-legged and gingerly plucking blades of grass from beside their respective knees. Right field would throw a blade of grass in the air and try to catch it, or watch which way it would blow in the gentle breeze. Left field cupped a blade of grass in his hands and examined it in thorough detail. Left field picked up another blade of grass, compared them, tied them together, and then tried to fold them in half. As center field searched for animal shapes in the clouds, right field and left field were busy carrying out scientific experiments with grass.
As I reflected on how I could equate each of these wonderful antics with characteristics that I had witnessed in a business environment, my revelry was interrupted by the sound of bat meeting ball. The determined young batter had successfully connected with a swing that would make Babe Ruth proud. The ball sailed in a straight line past the pitcher's mound, skipped up some dust near second base, and bounced merrily into the outfield. By way of response, the pitcher jumped out of the way and then turned to chase the ball after it was safely beyond him. The girls at second base and shortstop clung to each other and squealed with a mixture of fright and delight. The actor at third base spun around like a top to see what the commotion was all about and tripped over third base in the process. The intense young boy at first base squatted nervously, stepping away from his post and back again, unsure of what to do in such an emergency. The entire baseball field seemed to buzz with excitement.
Just then, someone yelled "RUN!" I could see that the coach of the other team was running up to the batter and pointing excitedly in the direction of first base. He shouted, "What are you waiting for? RUN!"
Apparently the shouting of the other coach was exactly what the team needed. All at once they started to run. All of the players dashed madly in the direction of the baseball. The boy from first base was racing the boy from the pitcher's mound. The boy from third base jumped up from the ground and starting in such a hurry that he left his glove next to third base. The girls from second base and shortstop waved their hands in the air wildly as they trotted in the direction of the entire team that chased the ball. Right field and left field scrambled on hands and knees in the direction of the ball as it came to rest. Just as center field discovered the shape of a goldfish in the clouds, he was distracted by the sounds of thundering feet coming in his direction. Center field rolled to get out of the way of the oncoming crowd, the ball coming to rest near his glove pillow.
As I watched the entire team rush from the infield and into the outfield to chase the ball, I was reminded of countless conference calls and meetings that had resulted in exactly the same situation. How often have a multitude of colleagues gathered for meetings and conference calls, consuming the attention and enthusiasm of the masses, but leaving nobody behind to cover the bases? With everyone chasing the ball, who would be left behind to receive it? Certainly there were opportunities to get engaged at the pitcher's mound, or thwart the extent of the offensive rally with shortstop or a play from the preoccupied colleague at second base. With everyone consumed by chasing the ball, nobody was left to cover their own responsibilities and get their own jobs done. Having back-up and helping hands on the play would have been a good idea, but covering the bases and the areas of responsibility were equally important. This was an important lesson for the young players that day, and hopefully one that would be remembered in their adult years.
I smiled to myself and walked in the direction of the other coach, prepared to compliment him on the score of his young player. With no member of my team remaining to cover the bases, it was inevitable that the batter would be free to casually walk the bases and earn the first home run of his career. Yet, the other coach stood sternly with his hands on his hips, and his baseball cap pushed backwards on his head. I followed his unyielding gaze to the crowd of young players that jumped up and down with enthusiasm in the outfield. The children cheered wildly, as if they had all just won first prize. The group ran together from the outfield to home plate. In the middle of the herd of jubilant youngsters, a hand held aloft the baseball that had been retrieved from its place of rest in center field. There, in the middle of the cheering and celebration, was the batter. Upon hearing the command to 'RUN", he had joined the chase and in the subsequent celebration. As far as the players were concerned, there were no teams or rivalry, only the shared excitement.
There were many lessons that season. I only hope that the young players learned as much about teamwork and sportsmanship from their coaches and parents as we learned from them.
Play ball!
______________________________________________________
Words of Wisdom
"Baseball is 90% mental, the other half is physical."- Yogi Berra
"One man alone can be pretty dumb sometimes, but for real bona fide stupidity, there ain't nothin' can beat teamwork."- Edward Abbey
"Baseball is like church. Many attend, few understand.”- Lou Durocher
______________________________________________________
About the Author:John Mehrmann is author of The Trusted Advocate: Accelerate Success with Authenticity and Integrity, the fundamental guide to achieve extraordinary sales and sustain loyal customers. John Mehrmann is a freelance writer and President of Executive Blueprints Inc., an organization devoted to improving business practices and developing human capital. www.ExecutiveBlueprints.com provides resource materials for trainers, sample Case Studies, and educational articles. http://www.InstituteforAdvancedLeadership.com provides self-paced tutorials for personal development and tools for trainers. Presentation materials, reference guides and exercises are available for continuous development.
Many years ago I had the privilege of being a coach for my son's t-ball team. For those who may be unfamiliar with the term t-ball, it refers to a form of baseball for beginners. The main principles of baseball apply. There is a first base, second base, third base, and home plate. There is an infield and an outfield with all of the same positions. There is a pitcher’s mound that is occupied by a player, but the pitcher does not pitch. The baseball is placed on a short pole that is referred to as a "tee". The tee is very similar to an enlarged golf tee, with the notable exception that it rests on a rubber mat as opposed to being pushed into the ground. The baseball is placed on the tee and the young batter gets three swings to hit the ball and, if successful, attempts to run to first base before being tagged out.
The game of t-ball provides an excellent opportunity to teach children the fundamentals of baseball and to participate in a team environment. Watching a successful baseball team is like watching the harmony emerging from a well rehearsed symphony orchestra. The players are aware of respective roles, placement, responsibilities, and the importance of well choreographed coordination with other players. Individual players may be exceptionally talented, but success can only be achieved if that talent is properly integrated with the abilities of the other players. A perfect throw can only be achieved if there is someone to catch. It is as simple as that. For youthful beginners, achieving such harmonious rhapsody of coordination requires a little patience.
An early challenge for first year t-ball players is to learn the rules of the game and position on the field. There is very little or no scientific method to assigning positions in the first year. There are no scouting reports. There are no tryouts. There are no t-baseball cards with statistics and profiles.
Watching the children take their positions on the field, I could not help but imagine how personalities and character are well defined at such an early age. The actions, decisions, and responses of the youth on the baseball field could easily be compared with characteristics displayed by adults. I wondered how much of the personalities of my colleagues had been displayed at such an early age, and how similar mannerisms in the office would be similarly evident if those individuals donned baseball caps and took their corresponding places on the field.
The pitcher stared intently at the batter. Leaning forward at the waist, one hand tucked firmly behind his back as if hiding a knuckleball, the boy clenched his teeth and glowered at the batter. Evidently the pitcher had watched some baseball games and accurately mimicked the facial expressions of a professional. Lacking chewing tobacco or a large wad of gum, the pitcher pushed his bottom lip forward with his tongue. His protruding left cheek and lower added to the intensity of his concentration. He had come prepared to play ball.
The boy on first base stood upright. His arms dangled loosely at his sides. His gloved hand bounced up and down alternately in front and behind him. His other hand adjusted his cap, scratched a runaway itch, and adjusted his cap once more. Each time that the batter prepared a swing, the boy on first base would immediately jump into action. As the bat swung forward, the boy at first base squatted at the knees as if to prepare for something. He was prepared for anything, even though he had no idea what to expect. Ready to protect his base, or chase the ball, or chase the batter. You could tell from the look in his eyes that he was ready to respond, even if he did not yet know what to expect or what was expected of him.
Two young girls had gladly accepted the responsibilities for second base and shortstop. The proximity of the positions on the field made it convenient for them to socialize. As the batter approached the tee with grim determination, the girls giggled and whispered to each other about the latest fashion accessories and the silliness of the boys on the team. Little faces, slightly shielded by the big baseball gloves, could not disguise the chorus of laughter and the tiny fingers that pointed at the boys who took the game so seriously. The girls stood shoulder to shoulder. Their legs crossed below the knees, slightly turning side to side, and occasionally extending their arms above their heads to complete tiny pirouettes. They were completely content to be at the center of the field and the center of attention, both fully aware and completely impervious to the stares of the other players.
The young lad on third base stared at the stands and waved to his parents. His glove tucked neatly under his arm, it was rarely on his hand. Being on third base, the lad did not expect to see any action, at least not until after a runner had passed first and second bases. The time for a runner to make it halfway around the diamond was more than enough time for him to put on his glove, or at least so he thought. Having a position so close to the bleachers made it easy for him to entertain the crowd. One moment standing still and searching the faces of the attendees for an attentive audience, and the next moment dancing a small jig around third base. He was the star of his own show, infrequently looking over his shoulder to make sure that his own team was still on the field with him.
Then there was the outfield. The outfield is a very special place in baseball. Despite the fact that in t-ball the ball is placed on an immobile stick, a pedestal at the throne of the batter, the players in the outfield did not expect to get very much challenge. As they each walked away into the calm seclusion of the open field, they quietly enjoyed a lack of expectation. Center field laid down on the ground, arms and legs crossed comfortably. Center field's glove was propped under his head like a pillow. Meanwhile, right field and left field were sitting cross-legged and gingerly plucking blades of grass from beside their respective knees. Right field would throw a blade of grass in the air and try to catch it, or watch which way it would blow in the gentle breeze. Left field cupped a blade of grass in his hands and examined it in thorough detail. Left field picked up another blade of grass, compared them, tied them together, and then tried to fold them in half. As center field searched for animal shapes in the clouds, right field and left field were busy carrying out scientific experiments with grass.
As I reflected on how I could equate each of these wonderful antics with characteristics that I had witnessed in a business environment, my revelry was interrupted by the sound of bat meeting ball. The determined young batter had successfully connected with a swing that would make Babe Ruth proud. The ball sailed in a straight line past the pitcher's mound, skipped up some dust near second base, and bounced merrily into the outfield. By way of response, the pitcher jumped out of the way and then turned to chase the ball after it was safely beyond him. The girls at second base and shortstop clung to each other and squealed with a mixture of fright and delight. The actor at third base spun around like a top to see what the commotion was all about and tripped over third base in the process. The intense young boy at first base squatted nervously, stepping away from his post and back again, unsure of what to do in such an emergency. The entire baseball field seemed to buzz with excitement.
Just then, someone yelled "RUN!" I could see that the coach of the other team was running up to the batter and pointing excitedly in the direction of first base. He shouted, "What are you waiting for? RUN!"
Apparently the shouting of the other coach was exactly what the team needed. All at once they started to run. All of the players dashed madly in the direction of the baseball. The boy from first base was racing the boy from the pitcher's mound. The boy from third base jumped up from the ground and starting in such a hurry that he left his glove next to third base. The girls from second base and shortstop waved their hands in the air wildly as they trotted in the direction of the entire team that chased the ball. Right field and left field scrambled on hands and knees in the direction of the ball as it came to rest. Just as center field discovered the shape of a goldfish in the clouds, he was distracted by the sounds of thundering feet coming in his direction. Center field rolled to get out of the way of the oncoming crowd, the ball coming to rest near his glove pillow.
As I watched the entire team rush from the infield and into the outfield to chase the ball, I was reminded of countless conference calls and meetings that had resulted in exactly the same situation. How often have a multitude of colleagues gathered for meetings and conference calls, consuming the attention and enthusiasm of the masses, but leaving nobody behind to cover the bases? With everyone chasing the ball, who would be left behind to receive it? Certainly there were opportunities to get engaged at the pitcher's mound, or thwart the extent of the offensive rally with shortstop or a play from the preoccupied colleague at second base. With everyone consumed by chasing the ball, nobody was left to cover their own responsibilities and get their own jobs done. Having back-up and helping hands on the play would have been a good idea, but covering the bases and the areas of responsibility were equally important. This was an important lesson for the young players that day, and hopefully one that would be remembered in their adult years.
I smiled to myself and walked in the direction of the other coach, prepared to compliment him on the score of his young player. With no member of my team remaining to cover the bases, it was inevitable that the batter would be free to casually walk the bases and earn the first home run of his career. Yet, the other coach stood sternly with his hands on his hips, and his baseball cap pushed backwards on his head. I followed his unyielding gaze to the crowd of young players that jumped up and down with enthusiasm in the outfield. The children cheered wildly, as if they had all just won first prize. The group ran together from the outfield to home plate. In the middle of the herd of jubilant youngsters, a hand held aloft the baseball that had been retrieved from its place of rest in center field. There, in the middle of the cheering and celebration, was the batter. Upon hearing the command to 'RUN", he had joined the chase and in the subsequent celebration. As far as the players were concerned, there were no teams or rivalry, only the shared excitement.
There were many lessons that season. I only hope that the young players learned as much about teamwork and sportsmanship from their coaches and parents as we learned from them.
Play ball!
______________________________________________________
Words of Wisdom
"Baseball is 90% mental, the other half is physical."- Yogi Berra
"One man alone can be pretty dumb sometimes, but for real bona fide stupidity, there ain't nothin' can beat teamwork."- Edward Abbey
"Baseball is like church. Many attend, few understand.”- Lou Durocher
______________________________________________________
About the Author:John Mehrmann is author of The Trusted Advocate: Accelerate Success with Authenticity and Integrity, the fundamental guide to achieve extraordinary sales and sustain loyal customers. John Mehrmann is a freelance writer and President of Executive Blueprints Inc., an organization devoted to improving business practices and developing human capital. www.ExecutiveBlueprints.com provides resource materials for trainers, sample Case Studies, and educational articles. http://www.InstituteforAdvancedLeadership.com provides self-paced tutorials for personal development and tools for trainers. Presentation materials, reference guides and exercises are available for continuous development.
Sunday, March 1, 2009
In Memory of Circuit City Stores
In Good to Great by Jim Collins, Circuit City was acknowledged as one of the companies that rose from good to great status by virtue of the appropriate culture and exceptional business strategy. The recognition bestowed on Circuit City was considerable and well deserved. The growth and success of Circuit City was contrasted sharply by the collapse of Silo Stores during the same period of two decades. What happened to a good to great company that it is now gone, and what can we learn from this closing chapter of the second largest electronics retail chain that is painfully relevant during the current economic challenges?
There are many factors that contribute to the success or failure of any organization. Intense pressures from external market conditions can impede profitability. The rise and fall of consumer confidence, investments, and economic turmoil can create overwhelming obstacles. Competition and the evolution of technology can wreak havoc in the best laid plans. Nonetheless, these are factors that are faced by all companies to virtually the same degree. It is not the challenge that distinguishes the success of an organization, but rather the response to the challenge. Companies that slay the economic and competitive dragons survive and eventually thrive. Occasionally the internal response to external challenges can weaken and organization infrastructure to the point of collapse. Let us reflect on this with the example of Circuit City.
Through the 1980's and 1990's Circuit City succeeded in expanding a network of stores from coast to coast. This network of stores was supported by a framework of logistics centers to minimize freight and inventory. This gave Circuit City an advantage for securing and protecting margins on products by reducing overhead and freight. The stores were connected by a carefully constructed nerve center of technology that enabled the consumer electronics retail giant to track loyal customers, identify purchasing trends, and provide world class customer service. As market conditions changed, Circuit City management carefully adapted strategies to accommodate service needs, relying on a network of best-in-class service provider partners to provide professional and courteous customer support. The collaboration and carefully connected network was consistent with a culture that allowed the retail kingdom to remain flexible, profitable, and prosperous for two decades.
As with any great tragedy, there is typically one pivotal decision that defines the collapse of an empire. In the case of Circuit City, this is most often attributed to the decision to release the highest paid sales personnel from the local stores. One might surmise that this decision was based on a desire to effectively reduce the cost of manpower while maintaining the highest number of bodies at the lowest possible price. It would be unjust to speculate a hypothesis on exactly what was in the mind of the executives that crafted this plan, but it is not difficult to guess about what was in the minds of the employees at the local stores when the announcement became public. The highest paid employees were the more tenured and experienced. Some may even say that the most tenured employees are the most loyal, having elected to stay with the retail company through thick and thin. These experienced, successful, well paid, and loyal employees were trimmed from Circuit City and quickly became a wealth of talent available for their competitors.
That seemingly insignificant decision to relieve the Circuit City bottom line by alleviating the company of top shelf employees had a significant impact on employee morale, public perception, and customer interaction. This single act by Circuit City remains decisively contrary to the very core of the culture that was so highly praised in Good to Great. Alan Wurtzel, former CEO of Circuit City, wrote of his experience in the early success of the company, "Instead of firing honest and able people who are not performing well, it is important to try to move them once or even two or three times to other positions where they might blossom." Alan Wurtzel recognized the importance of maintaining the truest competitive edge, the one asset that can truly transform business, and that is quality human capital. By removing the most experienced personnel at local stores without properly evaluating the financial impact of individual performance and contributions, Circuit City removed many top performers without a proper impact analysis of how this would impact revenue. The sudden sucking sound was not the impromptu jettison of employees, but rather the evacuation of revenue associated with them. It was a bleeding of talented resources from which the much lauded retail giant would never recover.
In the final months of the slow decline, the retail giant considered mistakes that had already sealed the fate of other former store chains. Following in the footsteps of Montgomery Wards, plans were proposed to reinvent the stores, copy the competition, or expand into other unfamiliar retail space. A prominent proposal was fueled by discussions of merger or acquisition by Blockbuster. At the time, Blockbuster was also experiencing threats from rising competition of downloadable movies on demand and video by mail. Unlike Circuit City, Blockbuster elected to make strategic changes to leverage the core strengths of their own organization with focus on the brand and organization. Blockbuster decided not to pursue the acquisition of Circuit City, but rather updated a business plan that built upon an already established brand, company culture, core competency, and loyal consumers. This decision for Blockbuster placed the fate of the organization in the hands of the loyal employees to successfully implement a gradual evolution of the business model, rather then a wholesale change in direction. Without a Blockbuster partner on the dance card, Circuit City tumbled into a maelstrom search for new direction from which it never emerged.
Just a few years prior to the catastrophe, Circuit City reported several hundred million dollars in retained earnings. With appropriate and flexible organizational adjustments, Circuit City might have responded to external economic pressures with greater dexterity and still retained the competitive advantage of experienced sales personnel. By fiercely protecting the core competencies and culture on which the organization had built success for two decades, Circuit City could have reinvigorated a unique value proposition and continued to differentiate the brand with loyal customers and a competitive edge. Perhaps the revenue would have been different if Circuit City had maintained the experienced and top performing sales professionals. Perhaps the goals of the company could have been achieved if clearly defined, and if the widespread personnel were actively engaged in pursuing those goals.
With mounting pressures from external conditions and competition, many companies are similarly forced to reconcile internal costs. The need to reduce expense may require organizational adjustments and redistribution of manpower. Of course, these are polite business terms for layoffs, cut backs, and elimination of personnel. Even if this is inevitable, before it occurs, think above the bottom line. Carefully consider how the performance and value to the organization can be measured by the individual contributors. Do not merely measure manpower by the cost of payroll, but also consider the financial repercussions to revenue. How much has been invested in the development and experience of the personnel in question, and how much would it cost to replace them? How much does an individual contribute to the brand image, recognition, and marketability of your organization? How does the individual contribute to revenue? How does the individual contribute to the performance of the organization with leadership, motivation, discipline, direction, or unique skills? How much would your competition be willing to pay for the personnel that you let go, and what would that cost you?
In recognition of a theme identified by Jim Collins in Good to Great, it is important to have the right people on the bus and then to decide where to drive it. During periods of sustained growth, this means carefully selecting and grooming the right people to drive your business. During harshly challenging times, this means making sure that you keep the right people at the helm of your business, even as you are forced to let some people go. Layoffs and restructuring can be damaging enough to motivation, adding shared pressures and responsibilities to the personnel that remain to bereave the loss of former colleagues. Make sure to consider all of the financial implications of such decisions, not just the payroll. Be aware of impact to customers, revenue, and company performance as alternative financial measurements. The fate of your company may depend upon it.
______________________________________________________
Words of Wisdom
"The biggest mistake Phil Schoonover [former Circuit City chairman, CEO and president] made was deciding to fire all of their best salespeople and keep only the marginal sales people. If Circuit City really had to cut back, I would have recommended that he do exactly the opposite."- Jeannette Howe, Executive Director of SEN
"The old adage that people are your most important asset is wrong. People are not your most important asset. The right people are."- Jim Collins, Good to Great
"In the absence of purpose we are enslaved by the mundane. It is only in defining the pinnacle of the mountain that we can find the path.”- John Mehrmann, The Trusted Advocate: Accelerate Success with Authenticity and Integrity
______________________________________________________
There are many factors that contribute to the success or failure of any organization. Intense pressures from external market conditions can impede profitability. The rise and fall of consumer confidence, investments, and economic turmoil can create overwhelming obstacles. Competition and the evolution of technology can wreak havoc in the best laid plans. Nonetheless, these are factors that are faced by all companies to virtually the same degree. It is not the challenge that distinguishes the success of an organization, but rather the response to the challenge. Companies that slay the economic and competitive dragons survive and eventually thrive. Occasionally the internal response to external challenges can weaken and organization infrastructure to the point of collapse. Let us reflect on this with the example of Circuit City.
Through the 1980's and 1990's Circuit City succeeded in expanding a network of stores from coast to coast. This network of stores was supported by a framework of logistics centers to minimize freight and inventory. This gave Circuit City an advantage for securing and protecting margins on products by reducing overhead and freight. The stores were connected by a carefully constructed nerve center of technology that enabled the consumer electronics retail giant to track loyal customers, identify purchasing trends, and provide world class customer service. As market conditions changed, Circuit City management carefully adapted strategies to accommodate service needs, relying on a network of best-in-class service provider partners to provide professional and courteous customer support. The collaboration and carefully connected network was consistent with a culture that allowed the retail kingdom to remain flexible, profitable, and prosperous for two decades.
As with any great tragedy, there is typically one pivotal decision that defines the collapse of an empire. In the case of Circuit City, this is most often attributed to the decision to release the highest paid sales personnel from the local stores. One might surmise that this decision was based on a desire to effectively reduce the cost of manpower while maintaining the highest number of bodies at the lowest possible price. It would be unjust to speculate a hypothesis on exactly what was in the mind of the executives that crafted this plan, but it is not difficult to guess about what was in the minds of the employees at the local stores when the announcement became public. The highest paid employees were the more tenured and experienced. Some may even say that the most tenured employees are the most loyal, having elected to stay with the retail company through thick and thin. These experienced, successful, well paid, and loyal employees were trimmed from Circuit City and quickly became a wealth of talent available for their competitors.
That seemingly insignificant decision to relieve the Circuit City bottom line by alleviating the company of top shelf employees had a significant impact on employee morale, public perception, and customer interaction. This single act by Circuit City remains decisively contrary to the very core of the culture that was so highly praised in Good to Great. Alan Wurtzel, former CEO of Circuit City, wrote of his experience in the early success of the company, "Instead of firing honest and able people who are not performing well, it is important to try to move them once or even two or three times to other positions where they might blossom." Alan Wurtzel recognized the importance of maintaining the truest competitive edge, the one asset that can truly transform business, and that is quality human capital. By removing the most experienced personnel at local stores without properly evaluating the financial impact of individual performance and contributions, Circuit City removed many top performers without a proper impact analysis of how this would impact revenue. The sudden sucking sound was not the impromptu jettison of employees, but rather the evacuation of revenue associated with them. It was a bleeding of talented resources from which the much lauded retail giant would never recover.
In the final months of the slow decline, the retail giant considered mistakes that had already sealed the fate of other former store chains. Following in the footsteps of Montgomery Wards, plans were proposed to reinvent the stores, copy the competition, or expand into other unfamiliar retail space. A prominent proposal was fueled by discussions of merger or acquisition by Blockbuster. At the time, Blockbuster was also experiencing threats from rising competition of downloadable movies on demand and video by mail. Unlike Circuit City, Blockbuster elected to make strategic changes to leverage the core strengths of their own organization with focus on the brand and organization. Blockbuster decided not to pursue the acquisition of Circuit City, but rather updated a business plan that built upon an already established brand, company culture, core competency, and loyal consumers. This decision for Blockbuster placed the fate of the organization in the hands of the loyal employees to successfully implement a gradual evolution of the business model, rather then a wholesale change in direction. Without a Blockbuster partner on the dance card, Circuit City tumbled into a maelstrom search for new direction from which it never emerged.
Just a few years prior to the catastrophe, Circuit City reported several hundred million dollars in retained earnings. With appropriate and flexible organizational adjustments, Circuit City might have responded to external economic pressures with greater dexterity and still retained the competitive advantage of experienced sales personnel. By fiercely protecting the core competencies and culture on which the organization had built success for two decades, Circuit City could have reinvigorated a unique value proposition and continued to differentiate the brand with loyal customers and a competitive edge. Perhaps the revenue would have been different if Circuit City had maintained the experienced and top performing sales professionals. Perhaps the goals of the company could have been achieved if clearly defined, and if the widespread personnel were actively engaged in pursuing those goals.
With mounting pressures from external conditions and competition, many companies are similarly forced to reconcile internal costs. The need to reduce expense may require organizational adjustments and redistribution of manpower. Of course, these are polite business terms for layoffs, cut backs, and elimination of personnel. Even if this is inevitable, before it occurs, think above the bottom line. Carefully consider how the performance and value to the organization can be measured by the individual contributors. Do not merely measure manpower by the cost of payroll, but also consider the financial repercussions to revenue. How much has been invested in the development and experience of the personnel in question, and how much would it cost to replace them? How much does an individual contribute to the brand image, recognition, and marketability of your organization? How does the individual contribute to revenue? How does the individual contribute to the performance of the organization with leadership, motivation, discipline, direction, or unique skills? How much would your competition be willing to pay for the personnel that you let go, and what would that cost you?
In recognition of a theme identified by Jim Collins in Good to Great, it is important to have the right people on the bus and then to decide where to drive it. During periods of sustained growth, this means carefully selecting and grooming the right people to drive your business. During harshly challenging times, this means making sure that you keep the right people at the helm of your business, even as you are forced to let some people go. Layoffs and restructuring can be damaging enough to motivation, adding shared pressures and responsibilities to the personnel that remain to bereave the loss of former colleagues. Make sure to consider all of the financial implications of such decisions, not just the payroll. Be aware of impact to customers, revenue, and company performance as alternative financial measurements. The fate of your company may depend upon it.
______________________________________________________
Words of Wisdom
"The biggest mistake Phil Schoonover [former Circuit City chairman, CEO and president] made was deciding to fire all of their best salespeople and keep only the marginal sales people. If Circuit City really had to cut back, I would have recommended that he do exactly the opposite."- Jeannette Howe, Executive Director of SEN
"The old adage that people are your most important asset is wrong. People are not your most important asset. The right people are."- Jim Collins, Good to Great
"In the absence of purpose we are enslaved by the mundane. It is only in defining the pinnacle of the mountain that we can find the path.”- John Mehrmann, The Trusted Advocate: Accelerate Success with Authenticity and Integrity
______________________________________________________
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