Industry leaders continually invest in refining and evolving their current product/service assortment through new product development. They do this to remain competitive as well as to generate measurable new top-line revenue for their organizations. Yet, the failure rate for new product introductions remains frighteningly high. Ask anyone what percentage of new products fail. The usual answer is somewhere between 70-90 percent.
Market Research can help reduce the failure rate considerably when applied relevantly and conducted correctly. But, there are five pitfalls that need to be avoided;
Test What You Intend to Launch
The features, benefits, and attributes that you use to describe and evaluate the product in research MUST match the product that you will bring to the market as closely as possible. Testing attributes that aren’t possible or too expensive may lead to unrealistic demand forecasts. For example, in testing a new online video game service, the research described the product as including hundreds of games from the top game publishers and a seamless interface and game-playing experience. Target consumer response to this concept was highly positive. However, when it was time to launch the product, many of the top game publishers were not included and the product required advanced drivers and high-powered PCs with very large RAM capacity to perform optimally. As a result, consumer expectations were never reached, and the product ultimately failed.
Don’t Depend on Qualitative Research Alone
Qualitative Research (focus groups, depth interviews, ethnography) utilize small, non-projectable samples. Qualitative research is very effective in providing guidance, hypotheses development, and disaster prevention. However, because the samples are small and not representative of the entire target market, the detailed findings developed solely on the insights from qualitative research may be wildly different from the reality of the marketplace. Always follow up with quantitative, projectable research to confirm hypotheses!
Respondents Will Often Overstate Their Intentions
Overstatement of intent bias is always an issue when measuring constructs such as “likelihood to buy” or “overall interest”. Respondents just can’t predict exactly what they intend to buy, especially if it’s a highly innovative product. There are a few ways to handle overstatement. First, when using scales, it helps that all of the data points are labeled or anchored so that there is no ambiguity of how to answer the question. Second, you may also want to consider using a down weighting scheme using historical empirical data to verify actual product take rates to survey results.Or, third, you may consider a hybrid approach, and instead of directly asking people for their own likelihood to buy, you ask them to project their forecast of what others would likely buy. In this way, you can overcome their personal… Share on XBut one of the best ways to overcome overstatement is to measure the likelihood to buy using a trade-off technique such as Discrete Choice or Conjoint Testing or MaxDiff. These techniques “force” respondents to make trade-offs and distinct choices of one product over the other, thus mitigating bias of direct questioning.
Evaluate Features, Benefits, and Attributes of the New Product In Bundles, Rather Than In Isolation
The most famous case illustrating this caveat is the Edsel. When developing the Ford Edsel, researchers tested various components of the car in isolation. They identified the preferred bumper, the preferred grill, the preferred dashboard configuration, and so on. When all the research was completed, they combined the top tested components together. But the car that resulted did not look or operate optimally. Utilizing one or more trade-off testing approaches such as Discrete Choice, Conjoint, or Max-Diff mentioned above will help to avoid this problem.
5.Remain Objective! You May Have to Declare that the “Baby” Is Ugly.
As a researcher, it is your duty to remain objective, to base conclusions and insights only on the data. The person or team developing the new project has a special interest in the success of the new product. But, for the good of the organization, if the research identifies flaws or inconsistencies, or simply disinterest, then it is important to clearly communicate this to the product team so that either adjustment can be made to improve the product or that the launch can be canceled. I once conducted a pricing test for a new product that indicated that the target price that consumers were willing to pay was about $100. However, the cost to make and sell the product was about $200. Unfortunately, despite the obvious discrepancy, the client decided to launch the product at a price of $285. Suffice it to say, the product was a flop. So, not only do you need to tell the client bad news, they need to believe you and act accordingly.
Following these guidelines will greatly increase your odds of success. But remember, ask the right questions, of the right people, at the right time.
Carl Fusco
Carl Fusco is an accomplished Marketing Research Consultant who helps businesses more effectively solve problems by applying research techniques and data-based insights. For more information email him at carl_fusco@yahoo.com or phone him at 770-364-7160.
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I work with many startups and emerging brands. They have become the core of my business. It gives me great satisfaction in helping them with their recruiting needs. When my colleagues and I created ITB Partners, our strategy was to focus on this sector. Companies in this phase of their life cycle face decisions that carry significant risk. One or two bad choices can sink an otherwise viable company, even if they have proof of concept. We believed we could help emerging companies achieve success by avoiding business-killing mistakes. Recruiting new employees is one of those high-risk activities.
A growing company will eventually need to increase its staffing level. They must approach this high potential risk with caution. For many of my clients, i.e., emerging brands, the first consideration is to find an outsourced solution. Many job functions can be outsourced, including accounting and human resources. A recent client had even outsourced most of their marketing function. However, a viable outsourcing strategy requires a strategic-level employee on staff to manage the outsourced function.
A good example is to hire a Controller or CFO to manage the outsourced accounting function and interface with the financial community and investors. Mission-critical job functions probably cannot and should not be outsourced. Early on, outsourcing non-mission-critical job functions may be a better use of a company’s resources. It is also a valuable way to reduce the risk associated with an expanding workforce.
Some Pitfalls.
Adding too much staff too soon.
Failure to use outsourced solutions
Lack of prioritization of positions to fill
Lack of processes for recruiting and selection
Lack of training for interviewing and selection
Lack of a coherent reason why someone should join your company
Recruiting for startups is different from hiring for a going concern. As I say, the risk is more significant. The costs for hiring a non-competent employee or someone whose behavioral issues negatively impact the culture may significantly affect a small company. Established companies have less difficulty attracting good employees. They have people, processes, and systems to ensure an effective recruiting and selection process and lower risk profile. They have an established culture and look to fill positions with people who reflect their mission.
Small, emerging companies have fewer resources, are less political, and have a bias for action. Speed rules! Entrepreneurs often have unconventional management styles. They can be chaotic. Employees working in these environments must demonstrate a high degree of flexibility and adaptability. Job roles have a wider scope, requiring employees to have a broader experience. It requires employees with greater self-confidence who are comfortable in an ambiguous, less-structured work environment. Many entrepreneurs lack training in recruiting, selection, onboarding, and retention. Job descriptions are challenging to create as ideal candidate profiles, and behavioral components may be more important than skills and experience. Finally, an emerging company may have more difficulty selling employment opportunities as their brands are unknown.
What to Do?
Begin with a plan!
Set staffing priorities w/timeline for hires
Can function/position be outsourced?
Establish processes for recruiting, selection, and onboarding.
Determine training needs of key managers and decision-makers.
Determine selection criteria (skills, experience, cultural fit)
Determine employer’s Unique Selling Proposition – Why should I join this company?
Let’s assume that you have a process in place to determine if a function should be covered by a contractor, an outside resource provider, or to hire W-2 employees. You have determined that you need a significant addition to staff in one or more mission-critical areas. Your solution is to hire employees to meet this need. How should you proceed?
As with any initiative in business or life generally, a successful outcome usually begins with a plan. Actionable data is required to develop an effective plan. So, what is the information you need? First, understand the work to be done and the importance of that work to the current year P&L. In other words, a cost-benefit analysis for each position you need to fill. This information provides the priority for filling each position.
To summarize, you have determined that increasing your company’s employment base is necessary for growth. But adding employees carries risk. You understand that minimizing this risk is critical to your company’s survival. Fortunately, you can mitigate this risk by improving the skills of those responsible for recruiting and selection. The solution is to find a consultant or a program that will give your managers the training and development they need. The cost of failure in this regard cannot be understated.
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I first stood at the Lincoln Memorial the day of Live Aid. It was my first trip to Washington, D.C. I almost kept going to Philadelphia to stand outside the concert event and hear the music. I decided to stay in D.C. and watch the concert from a new technology called jumbotrons staged on the National Mall. I realized I was experiencing history and that it was best I stop and take in the events.
I shared previously about Lincoln. I wondered what would be the outcome of the Live Aid effort that day in D.C. I wondered if Abraham Lincoln realized in 1858 when he explained how a divided house could not stand he would be dead in less than seven years by assassination. I stood at his memorial in 1985 and wondered why he was not buried in D.C. I concluded it did not matter where he is buried. Death is death. The best that can be done going forward is to honor the memories, the actions, and the contributions of the dead.
You, as the leader of your organization, have selected job applicants to be candidates for each role you need to be filled in your organization. You do not need to spend any more time considering the end of the tenure for those you need to move out of your organization. You have stepped through assessing each applicant’s application package, identified what seems to be a match between their application package and your role opportunity, had the screening call conducted by way of your direction, read the call outcomes, and have decided to speak with a candidate yourself. You now must decide how much freedom you will give your candidate to accomplish their work in your organization through the role they serve. You are considering death and life simultaneously as you move to care for the organization. This decision is similar to a shepherd and the flock they supervise.
A sheep has no fangs or claws. They are dependent on the shepherd to protect them by leading, guiding, and directing them. They lead by being out front of them. They guide by being beside them. They direct by being behind them. The shepherd leads them to grass to eat. The shepherd does not mandate which tuft of grass a sheep must eat. Each sheep has some degree of freedom in its relationship with its shepherd.
Let’s look at a formula I have studied for years to help me evaluate the possibility someone would want to purchase something from me as a means to guide your interview conversations. A buyer may want to purchase a product I am selling or my labor in the form of services. The formula has three parts to it. Each part must have enough value in the eye of the buyer to purchase whatever it is I am selling. You also need these three parts to have enough value in both your eyes and in the eyes of the candidate to proceed through your evaluation process.
INTEREST
You are selling a job by way of a compensation package. There may be fame as an outcome of the job, but no one can guarantee fame. The exchange of money in your labor budget for the total services delivered from a worker is the deal. Is this deal interesting to you as the service buyer? Is this deal interesting to the candidate as the service seller?
Now, the candidate has the same thoughts in mind but is reserved in their perspective. They see you are selling your compensation package, and they are the buyer through their services currency. How do I know this is true? Because they would be talking to a better deal for their services currency than talking to you about your compensation package. You have the best offer that has come to them. They most likely are always looking for a better deal. You most likely are always looking for a better deal. A better offer could come at any time. So, the offer from you has a boundary to it called time.
Here are some clear indications of interest on both your part and on the part of the candidate. Are they looking you in your eyes to listen to what you are telling them? Are you looking into their eyes? Are they taking notes during your discussion with them? Are you taking notes about their discussion performance? Are they able to repeat back to you any of the statements or points you make to them? Are you able to repeat back to them anything they shared during the conversation that is new to you? Are they able to provide a meaningful answer to a question you ask them about the information you have shared with them? Are you able to provide a meaningful answer to a question they ask you about the information you have shared with them? Are they involved with social networking during your conversation with them? Are you multitasking during the conversation with them?
TRUST
A buyer may want what is sold, but they do not trust the seller. If a buyer does not trust what is being sold, then they have no interest in what is being sold. Trust is the connector of evidence and faith. Evidence is clear proof. An example of evidence is the paycheck arriving to the worker every pay cycle. Faith is the assurance the evidence will arrive. An example of faith is the time between paydays. An example of trust is the inability to prove the paycheck will be delivered to the worker on payday but convinced the paycheck will come as agreed.
You, as the interviewer, may conclude the candidate has the skills, but you do not trust they will deliver those skills to you for the compensation you deliver to them. You also may conclude they are interested in doing the work you want them to do for you, but they also have an interest to go and fix parts of your organization they believe need fixing beyond the work you want them to do.
They, as the candidate, may realize you are not a person they want to walk with now. You can protect, lead, guide, and direct them, but they do not want to eat the grass you have provided for them. They may have a worldview that does not overlap suitably with yours or the organization.
Any of these reasons and more cause the candidate to stop being a candidate. You are unable to provide them the trust necessary to do their role in a manner they prefer that is also acceptable to you. Their candidacy is dead. Move on without remorse. Do not be concerned with what may occur with them tomorrow as a future applicant to another role you need to be filled.
MONEY
You have what you define as a great job opening. You do not have enough money to pay someone to do the work. Stop what you are doing. You do not need to interview anyone. You need to find a budget to spend.
Asking anyone to work for less than what the work is worth demonstrates poor judgment. Your trust as a leader would be damaged by such a choice, perhaps beyond repair. It is not worth the hassles of asking anyone to take work that is not funded fairly.
Now, what is fair? That answer is between you and the service supplier. If you are convinced you have a fair compensation package, then this is all you need to know for fairness. If your candidate does not agree that what comprises your compensation package is fair to them, then you are still at a stopping point with their candidacy.
What you are seeing at this point in your evaluation process is the concept of equal pay for equal work in terms of economic equity. You do not have a pay gap, as the candidate is not being paid because they are not a member of your organization. Your best and final offer is what it is. I am not talking about job promotions, pay raises, or any other role modification. I am only discussing bringing a new person into your organization. What happens to them after they are brought into your organization is an altogether different thought construct based on the linear connection of your worldview, ethics, morality, and virtue. My hope for you is you walk out the linear connection of worldview, ethics, morality, and virtue with those you lead in a fair and clear manner. I hold this hope as I prefer you to be a credible leader.
RECOMMENDATIONS
I recommend you take time this week to practice your interview methodology and cadence. Go so far as to prepare the meal menu you will eat before the interview to have all parts of yourself ready to hold the discussion.
I also recommend you do not multitask during the interview discussion. There is nothing good that comes from multitasking during a crucial discussion. All that is demonstrated by multitasking during a crucial discussion is chaos is present in your organization. If you need to communicate to the candidate you have chaos in your organization, then you can do so effectively by way of a single sentence, either verbally or in writing. Then, stop multitasking and focus on having a productive conversation.
Finally, gain a commitment from the candidate during the conversation. See how interested they are in joining your organization by putting actions to their words. Ask them to write something and email it to you. Write, in the form of a researched-based effort. This action is a great way to learn quickly how interested a candidate is in joining your organization based on all they have learned to this point about you, the role, and the organization.
So, I ask you: where do you want to go? I hope your answer is to develop the plans necessary to accomplish the strategy you know you need to achieve to arrive at your desired destination. If this is the case, then let’s get to work. If not, then I wish you the best of everything.
I hope we will see each other here next week. Email me if you need to talk before then.
Stephen Dawson is an executive consultant of technology and business strategy, serving significant international organizations by providing leadership consulting, strategic planning, and executive communications. He has more than thirty years of service and consulting experience in delivering successful international business development and program management outcomes in the US and SE Asia. His weekly column, “Where Do You Want To Go?,” appears on Thursdays.
Dr. Dawson has served in the technology, banking, and hospitality industries. He is a noted strategic planning visionary. His pursuit of music has been matched with his efforts to lead by service to followers. He holds the clear understanding a leader without followers is a person taking a long walk alone.
Stephen has lived his life in the eastern United States, visiting most of the United States and several countries. He is a graduate of the Regent University School of Business & Leadership. Contact him at service@shdawson.com.
I hope you enjoyed our point of view and would like to receive regular posts directly to your email inbox. Toward this end, put your contact information on my mailing list.
Your feedback helps me continue to publish articles that you want to read. Your input is very important to me so; please leave a comment.
As so many of you have asked, we are getting back to face-to-face meetings to help facilitate our networking efforts. The plan is, to begin with, quarterly meetings supplemented with ZOOM meetings.
The August ITB Partners Meeting will be held “Live,” beginning at 11:30 on the 20th at The Peachtree Club, 999 Peachtree St., Atlanta.
The Cost to attend is $30 which includes lunch and parking. Attendance is limited to the first 20 people to rsvp.
Our Host and Featured Speaker is Barry Flink. Barry will lead a discussion on starting a new business. Our Spotlight Speaker is David Shavzin.
Barry Flink has over 35 years of management experience in multiple industries. Concentrated in HR, he has also managed several companies involved in hospitality, restaurant operations, nonprofits, logistics, and commercial real estate. Barry served on several corporate executive positions. As Vice President, Human Resources for Wells Fargo Armored Service Corporation, he reengineered the human resources and legal departments and brought substantial cost savings to the
Please RSVP Jim.Weber@itbpartners.com before the 17th.Let me know if you have any questions!..Jim Weber
“But pattern-matching doesn’t equal comprehension.” Peter Watts
Stephen H Dawson, DSL
The thought of finding a perfect job applicant to fill any role in any organization seems impossible. It seems impossible because it is impossible. It is impossible because people are imperfect. They are imperfect as they tend to change over time.
The matching work at hand involves much more than only considering a suitable match between the job applicant and each role you have to fill. It also involves considering the match between the job applicant and the organization. Remember, your organization includes any matrix-supplied folks involved in doing work with your people, your customers, your strategic partners, and your supply chain network. The job analysis we discussed last week may not have included these attributes. However, they need to be in there. If they are not, then the job analysis must be revised to include them as applicable.
OK, let’s proceed from the point of having a satisfactory job analysis as we consider job applicants to see if you have a viable candidate for each role you need to fill. We need to first look at some terms before looking at applicants. These facts may seem harsh, but they are a crucial part of your assessment work.
ORGANIZATION ANTIBODIES
An antibody does the work to neutralize either a pathogenic bacteria or virus. The intent of the pathogenic is to help, but it instead causes harm. An organization antibody is a person who does not want to follow your leadership. They resist your leadership either passively or actively.
Nicholas Evans described how an antibody could suffer the pursuit of innovation. Evans cited an article by Mitra Best, who described antibodies in a corporate setting. Both Evans and Best provided recommendations about how to remediate each antibody form. What they did not do address in their writings is why an organization antibody has so much power over their boss.
Think about the folks in your organization who have been there a long time. They have not been promoted to a senior role because they have either a character deficiency, a skills deficiency, or both. They hold the belief they know it all and tell anyone who will listen to them they know it all. This person is an example of an organization antibody. Deep down, they believe they are running the organization. They believe they are doing what is best for the organization. They refuse to listen to reason. Therefore, they have no ability to have cognitive awareness to know they are causing harm. They are as cancer is to the body.
CANCER
Cancer is a disease defined by abnormal cell growth. It is possible cancer could be misinterpreted as a nodule, a small bump. A small bump could occur due to one of several conditions. The indication of a cancer being present does not appear until cancer grows to be a problem. Untreated cancer spreads in a condition known as metastasis. Early testing for cancer helps to overcome cancer unawareness. The value of proper testing here is beyond measure.
I shared several weeks back, “I cannot say a person is evil, as I do not believe it is possible. I can say their actions are or are not evil.” I maintain this position. I shared a few weeks later about evil. The attributes of organization antibodies and cancer have considerable overlap with one another. They both have no ability to have cognitive awareness to know they are causing harm. They both consume a massive amount of resources as they spread. They both spread through the host, either the body or the organization, in a progressive manner. The rate of spreading is inconsistent, so not relative to objective analysis. They both have a high mortality rate, both literally and figuratively.
An organization member allowed to mature into an organization antibody is an event that does not occur overnight. It is without question the presence of an organization antibody is the result of a failure by leadership, human resources, and learning & development. Note I do not identify either a manager or a team leader as responsible here. I hold this position because their roles are not able to have an overarching view of the organization. The reasons for such failures are endless, but the leadership, human resources, and learning & development staff hold collective responsibility for the damages caused by an organization antibody.
I hold the position the only way to treat an organization’s antibody is to remove them from the organization and place their leader on a rapid performance improvement plan. If I do not see substantial adherence to the performance improvement plan by their no-longer leader in my eyes, then their no-longer leader is no longer a part of my organization. The corrective action to address the human resources poor performance is to replace the human resources business partner serving my organization immediately. The corrective action to address the learning & development staff performance is to replace their leader serving my organization and place all learning & development staff on a rapid performance improvement plan. All activities and I mean all activities, performed by the learning & development staff for my organization cease until there is credible evidence they are each qualified to perform learning & development work. The support necessary for the human resources and learning & development staff corrective actions may require support from your boss. You should be able to get it without difficulty since you have credible proof of the harm caused to the organization by their respective failures to deliver quality work.
SKILLS
The term credential is the combination of work experience, education, degrees, certifications, and licenses earned and held by an individual that each has relevance to each role you need to fill in your organization. These individual credentials then feed into forming organization credentials. All aspects of any credential must be validated during the job application process by your organization. You must hold, without a doubt, a clear understanding of the abilities each job applicant holds today. What credentials they held in the past may be nice to know, but that was then. You are evaluating now.
Gaining credentials from a source that is not accredited is possible, but the validation process becomes much more costly to accomplish. It may not be possible to validate a credential that is not from an accredited source. A non-validated credential is termed as hope but not a credential.
PERSONALITY
We discussed last week the value of third-party testing. The cost of testing each applicant may not be worth the expense. The need is still present to know the personality of each applicant. If you do not have the ability to fund personality testing a job applicant you advance to candidate status to know if they are a viable candidate, then your ability to advance applicants through your evaluation process is reduced. How much of a risk can you afford to take at this point in the assessing-to-matching process?
You have rooted out those job applicants who do not hold the skills necessary to fill each role you need to be filled in your organization. You know you cannot afford to interject harm to your organization by bringing in an organization antibody. You are wondering if you can afford to measure a personality without an objective third-party test. The answer is you cannot. You will have to bear the risk of going forward without measuring personality should you chose not to use third-party personality testing. This risk will have to be managed as any other risk.
WORLDVIEW
We discussed worldview a few weeks back. You are wondering how the applicant’s worldview matches both your worldview and the worldview held by those in your organization. You can get this information from the screening call. I addressed last week how to go about this action during the interview you conduct with them. Specifically, you are looking for their position on social and political matters. You must follow fair employment laws to be a credible leader. So, how do you get this information?
You get this information by asking three questions. One question focused on a social aspect. One question focused on a political aspect. Then, one question overlapping both a social and political aspect. Use three different aspects in these three questions. Write the questions to be as figurative as possible. Look for timeless topics common across all cultures, present in all points of history, having reasonable belief they will be present in the future. These answers will provide you enough information to know if you have an applicant that can advance to a candidate.
RECOMMENDATIONS
If you are matching applicants without a third-party personality evaluation, then you must accomplish this evaluation in the next step of your interviewing process. You cannot experience success in finding a suitable candidate without performing a clear personality evaluation. Prepare for the costs of third-party personality evaluations.
Record all screening calls. Have the calls transcribed. Read the entire transcript. Listen to the parts of the audio recording you find interesting by way of the transcript.
Match the notes of the person conducting the screening call to the call transcript. Identify any mismatch in what the caller observed in comparison to the response of the applicant. This mismatch will help you understand if there is a personality or worldview mismatch with your organization. It will also help you qualify the work of the person conducting the screening call. This collective understanding will arrive because you have a satisfactory job analysis, you wrote the questions for the screening call, and you placed boundaries on the screening call. This reasoning is found in the plan we discussed last week.
I recommend you take time this week to consider the impact of an organization antibody in your organization. Prepare your screening call questions based on the material we covered this week. Finally, look for providers of counseled results interpretation to assist you in selecting applicants to become candidates based on the plan we discussed last week.
So, I ask you: where do you want to go? I hope your answer is to develop the plans necessary to accomplish the strategy you know you need to achieve to arrive at your desired destination. If this is the case, then let’s get to work. If not, then I wish you the best of everything.
I hope we will see each other here next week. Email me if you need to talk before then.
Stephen Dawson is an executive consultant of technology and business strategy, serving significant international organizations by providing leadership consulting, strategic planning, and executive communications. He has more than thirty years of service and consulting experience in delivering successful international business development and program management outcomes in the US and SE Asia. His weekly column, “Where Do You Want To Go?,” appears on Thursdays.
Dr. Dawson has served in the technology, banking, and hospitality industries. He is a noted strategic planning visionary. His pursuit of music has been matched with his efforts to lead by service to followers. He holds the clear understanding a leader without followers is a person taking a long walk alone.
Stephen has lived his life in the eastern United States, visiting most of the United States and several countries. He is a graduate of the Regent University School of Business & Leadership. Contact him at service@shdawson.com.
I hope you enjoyed our point of view and would like to receive regular posts directly to your email inbox. Toward this end, put your contact information on my mailing list.
Your feedback helps me continue to publish articles that you want to read. Your input is very important to me so; please leave a comment.
“Don’t be afraid to give up the good to go for the great.” John Rockefeller
Let’s talk today about you as a leader. You seem to be a good leader who is looking to become a great leader. You are not operating in fear. You are working to accomplish your strategic planning, but it is not going so well. We have discussed at length you have decided you need to swap out some of your people to have the work finished with excellence. Your power as a leader is about to be challenged in a way that you may not be prepared to handle. It will be challenged because you are implementing a construct to your leadership style that involves loving your followers. My friend, prepare to be soon hated by more people than you realize now.
Love, hate, power. These are big words that will take many conversations to cover appropriately. Today, let’s focus on the term power.
There are many types of power. You know this is true, or you would not be in a leadership role now. The essence of power is possessing some form of harnessed energy. We need to focus our conversation about power on the aspects of social combined with political and then economic. Let’s have a conversation today based on the power attributes of supply, demand, and outage.
You supply leadership to your followers through three components. First, whatever higher power you may have helping you do whatever it is you do to live this thing called life. Second, you possess concise, tangible, relevant skills transferable to many roles to do endless amounts of work. Finally, the enablement assigned to you by your boss is commensurate with your role in your organization. You then take these components and do your work as a leader. All components are not equal among all people, as not everyone has the benefit of the same higher power, obtained the same skills, and have the same enablement assigned to them. Therefore, all leaders are not able by this construct to be as effective. Some leaders may be more effective than others, while other leaders may be less effective.
Note I did not say you need an office, telephone, a budget, or any other tool necessary to accomplish your role as a leader. These items are conditional based on the state of your work environment. What you need is a suitable combination of skills and choices applied to your leadership role. The higher power and enablement parts are not from you, as they are delivered to you.
The doing part of your role is the manifestation of your leadership components. Doing your leading by way of humility encapsulates the power components in a manner greater than any combination I know of to accomplish leadership. There may be a more effective combination out there, but I have not found it.
How does humility fit into the power aspect of leadership? Compare the definition of humility with the definition of power. They are both nouns. A noun is accomplished through a verb. So, what verb to use to accomplish both humility and power? I recommend doing what we discussed in the verb of love. There is no prideful act of love, only a humble act of love. So, our conversation today will match power, humility, and love in accomplishing your role as a leader.
Preparing your humility to deliver love could be a larger effort than a single discussion will suffice to accomplish. You need to tell me about your humbleness for me to know how to best equip you for success. I leave it to you to tell me about your humbleness.
DEMAND
I shared a few weeks ago you are now in organization design mode as you move to replace some of the people in your organization. You will find out quickly who in your organization wants to do their work by way of the plan you have shared with them to use love to accomplish the strategic planning work, along with all of the other work performed in your organization. I make this statement based on the social and political power struggle present in many nations today. If you need me to cite some examples of this struggle, then I doubt you would be in the leadership role you fill now.
The demand for your leadership by followers could come as acceptance, rejection, or conditional acceptance. The acceptance-rejection-conditional combination is the same layout as the love-hate-ambivalence combination we discussed a few weeks back. You will find leading and loving people are an inseparable pair. Note I did not say leadership. A leader may be successful or unsuccessful in their leadership. A successful leader always leads. An unsuccessful leadership effort means the leader is not leading.
Your leadership power supply is being refused by two of these three options. Take the actions I shared with you recently to resolve any refusal by your followers. The rest of your folks want the leadership you are supplying, as they have accepted your Love Action Items list. Furthermore, they processed effectively your communications involved with you teaching your people the four definitions of love. This group is now your organization. The folks who have either rejected or accepted conditionally your new construct to your leadership style that involves loving your followers are on the way out of your organization. They are trying to usurp your leadership with their power, per their choice not to follow you any longer. This condition does not exist in a productive organization. It is at this point your hope of finding suitable applicants for the roles you wish to fill becomes larger than it was before you realized who else must leave your organization.
Sure, it is great to look for replacement people without telling anyone. This approach is both unrealistic and not advised. The power held today by text messaging, instant messaging, and social networking is greater than any individual ability to stay ahead of such communications. Do not try to overcome either of these powerful forms. I encourage you to execute the plan we covered last week.
Finally, be prepared to have healthy demands placed on your leadership that you did not expect to occur. The demands could come from either your people or people outside of your organization. Preparation for this likelihood is best accomplished by having a qualified executive leadership team ready to assist your leadership efforts. Remember, you may need to be more humble during this unexpected demand to help those needing your leadership to be sustained while you move to supply them the leadership you did not expect you would need to deliver.
OUTAGE
The loss of your leadership supply by demand for anything more than you can supply in terms of either quantity or quality results in a leadership power outage. An outage can be either intermittent or sustained. Your people during a leadership power outage are unable to work because they have no leader supplying them the power they need to do their work, all while doing it humbly through love. The means to overcome this outage is to add more power to your Love Action Items list. This outage condition could occur for several reasons. It is not a skills problem, as you acquire the skills you need before you need them to serve as a qualified leader…don’t you?
I am not saying a leadership power outage means you are bankrupt as a leader. Neither am I am saying your leadership is unequivocally a toxic debt held by your followers, your organization, or your investors. I am saying that those in demand of your leadership power are having to wait to take delivery of your leadership power supply. They may be able to work for a while in the absence of your leadership power supply, but they will not be productive for long without your leadership power supply to them. If they could last without your leadership power supply, then you are no longer needed in your leadership role.
I discussed the topic of leadership power with my strategic partner David Daniels. Dave shared judicious insight on the topic. “I have been in situations where over half of my leadership team needed to go. Now, I didn’t feel that it was prudent to let them all go at the same time, so I had to prioritize my decisions and approach. I rarely found that demotions worked, so I tried avoiding this tactic at all costs. However, I did find some people a fit for other positions if they shared my values and goals.” Dave went on to say, “I would insert strong external leaders who share my vision and values. I would not place them in any position right away, as I would want them going through a thorough onboarding process over a couple of months that would allow them access to every aspect of the business. The input that you would receive from this group will prove to be invaluable when assessing your final executive leadership team make-up.” Dave and I agree the executive leadership team is a crucial resource for any leader of an organization.
JUDGMENT
Sure, the best-case scenario is to have your leadership power supply in balance with the demand for follower leadership power consumption. We see this balance in just-in-time manufacturing, teaching, and learning. The Wall Street Journal reported recently the automotive industry has abandoned this half-century methodology due to present economic climate turbulence. However, this balancing is rare in the practice of leadership. It is best to plan for leading an organization that needs help to stay balanced due to unforeseen obstacles introduced to your organization.
The realization of fame and fortune by leadership occurs after doing the work of leadership, as do all forms of payment for accomplished work. The social and political power struggle present in many nations today not only impairs your ability to lead by adding more voices to consider, but it also makes your work much easier to accomplish. It is easier to accomplish because love delivered through humility during the practice of leadership encapsulates the three identified power attributes of supply, demand, and outage in a manner greater than any combination I know of to accomplish leadership. You now have greater clarity of your leadership work than in recent years due to this social and political power struggle.
The world is forming to a great struggle of one side versus the other for the acquisition of power for almost all aspects of humanity. Humanity has seen this before, and it will most likely see it again. This time it is a different struggle, as there is the presence of significant information technologies assisting each side. This struggle is not going to be an easy experience for anyone. Use the energy concept we covered a few weeks back to leverage the social and political struggle to your advantage. You have plenty of room in this landscape to realize success even though others around you may not be operating in either humility or love. If you are sold this combination is the best means for you to succeed, then now is the time to use them as the form of power you need to wield to realize success as a leader. Finally, since there is no reason to stop being humble or to stop loving people, this combination comprises the bulk of your leadership strategy henceforth.
I encourage you to spend time this week completing your materials summary, your Love Action Items list and schedule the first meeting with your boss based on the plan we covered last week. Also, spend some time thinking about how those both in and those working with your organization want to gain power over you as a leader. Finally, think about how you can defeat such attempts to overcome you by responding with love. Remember, there are four definitions for the term love. Use all of them as appropriate to lead with excellence.
So, I ask you: where do you want to go? I hope your answer is to develop the plans necessary to accomplish the strategy you know you need to achieve to arrive at your desired destination. If this is the case, then let’s get to work. If not, then I wish you the best of everything.
I hope we will see each other here next week. Email me if you need to talk before then.
Stephen Dawson is an executive consultant of technology and business strategy, serving significant international organizations by providing leadership consulting, strategic planning, and executive communications. He has more than thirty years of service and consulting experience in delivering successful international business development and program management outcomes in the US and SE Asia. His weekly column, “Where Do You Want To Go?,” appears on Thursdays.
Dr. Dawson has served in the technology, banking, and hospitality industries. He is a noted strategic planning visionary. His pursuit of music has been matched with his efforts to lead by service to followers. He holds the clear understanding a leader without followers is a person taking a long walk alone.
Stephen has lived his life in the eastern United States, visiting most of the United States and several countries. He is a graduate of the Regent University School of Business & Leadership. Contact him at service@shdawson.com.
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New Century Dynamics Executive Search places a CMO/Head of Marketing for a rapidly growing, northeastern-based, direct-to-consumer, subscription meal delivery company.
Jim Weber, President of New Century Dynamics Executive Search, and Managing Partner of ITB Partners reports that he has found a CMO/Head of Marketing for his client.
Working with the senior leadership team, this Executive will drive the development and plan the execution of a comprehensive growth strategy to achieve the company’s objectives, charting their path to the future. The Head of Marketing will evaluate and enhance the organization’s branding, digital & traditional marketing, partnerships, event planning, public relations, community outreach programs, and customer experience group.
Many are convinced that a US stock market correction, or even a bear market, is inevitable. So, when the S&P 500 was down 1.6% last Thursday, many thought it had arrived. Then, the S&P 500 rebounded and hit a new all-time high on Friday. Now, as I write this article the premarket numbers are down big yet again today. Tomorrow the market may rebound…
This does not mean the market always goes up. It doesn’t mean that the government is not creating future problems. But, I don’t try to time the market. What I do is focus on fundamentals, like profits and interest rates. And right now, I believe the S&P 500 is still undervalued.
Late last year, when the S&P 500 was at 3,638, I used those fundamentals to project a year-end 2021 target of 4,200, for an increase of 15.4%. However, with profits returning toward normal even faster than I had anticipated, the S&P 500 hit 4,185 in mid-April and I upped my projection to 4,500, which would be a full-year gain of about 19%.
Now, with the S&P 500 just 3% from my target, I’m choosing to stand pat. Why? I do not want to leave the impression that we are traders, shifting our target over and over. We are investors. It’s the long-term that matters. The US stock market has been undervalued relative to our Capitalized Profits Model since 2009.
My model takes the government’s measure of economy-wide profits from the GDP reports, discounted by the 10-year US Treasury note yield, to calculate fair value. If we use a 10-year Treasury yield of 1.36% (Friday’s closing yield) to discount profits (from the first quarter, the most recent available), then my model suggests the S&P 500 is 45% undervalued. And with profits likely to grow 20% or more this year, fair value will rise more as the year unfolds.
Right now, the Fed is artificially holding interest rates down across the yield curve. So, when I calculate our estimate of fair value, I use a 2.0% 10-year yield. Using this 2.0% rate gives us a fair value of 5,240. It would take a 10-year yield of about 2.4% for our model to show that the stock market is currently trading at fair value (with no increase in profits.) If rates do rise, because the economy is stronger than the Fed expects, it would likely be accompanied by even faster profit growth.
I fully understand that current monetary policy is inflationary, and that past government spending, plus what some politicians are asking for right now has lifted US Federal debt above 100% of GDP.
These policies could shift economic growth, the level of interest rates, and my estimate of the fair value of stocks in the years ahead. But for the foreseeable future, re-opening, easy money, and deficit spending are all pushing economic growth and profits up. With the Fed holding rates down and profits booming, and with our model saying stocks are undervalued, I remain bullish. And right now I think if our 4,500 target is wrong, it is likely too low.
Integrated Financial Group
Kevin Garrett – Integrated Financial Group
My firm specializes in working with people that experience what we call “Sudden Income.” Typically the income came from one of these events:
1) Accessing and Managing Retirement Assets
2) A Performance Contract (Typically a Sports or Entertainment Contract)
3) Divorce Settlement
4) Inheritance or Insurance Payout
5) Sale of a Business or Stock Options
6) A Personal Injury Settlement
I believe the unique nature of these events requires specialized professional experience, empathy, and communication to deal with both the financial changes and the life changes that inevitably come with them.
My clients value my ability to simplify complex strategies into actionable plans. They also appreciate that I am open, non-judging, and easy to talk to about their dreams and fears. Each client defines financial success differently and my goal is to guide them from where they are now to where they want to be. As my client’s advisor, my goal is to provide them with a lifetime income stream, improving returns, protecting their funds, and managing taxes.
Firm Specialties:
Retirement Planning For Business Owners & Executives
Woman’s Unique Financial Planning Needs
Professional Athletes
Investment/Asset Allocation Advice
Estate Planning
Risk Management
Strategic Planning
Kevin was listed in The Wall Street Journal as “One of the Financial Advisors In The Southeast That You Need To Know”
Kevin was listed in Forbes Magazine’s Annual Financial Edition as a Five Star Financial Advisor
Kevin has been awarded the Five Star Professional Wealth Manager in Atlanta Magazine in 2012, 2014, 2015, 2016, 2017,2018, and 2019.
Award based on 10 objective criteria associated with providing quality services to clients such as credentials, experience, and assets under management among other factors. Wealth managers do not pay a fee to be considered or placed on the final list of Five Star Wealth Managers.
KEVIN GARRETT, AWMA, CFS Integrated Financial Group 200 Ashford Center North, Ste. 400 | Atlanta, GA 30338 Phone | 770.353.6311 Email | kgarrett@intfingroup.com Website | kevingarrettifg.com
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There is an old Chinese curse, “May you live in interesting times.“ 2020 was a difficult year, surreal even. We were challenged in ways we never imagined. Without a doubt, we have been living in interesting times.
Suffering life challenges can be difficult, notwithstanding your financial situation. Issues of life and death are a primary example. The burden of many challenges, however, is relative to one’s financial situation. One’s ability to easily navigate adversity depends upon how you have structured your life and prepared for predictable challenges. Share on X The more resources available, the better you can weather a surprise. You can mollify a crisis or avail yourself of opportunities. Do you have enough physical and financial resources available if required? It is good to have options.
This past week I was confronted with a non-life-threatening situation which is, nevertheless, a disruption. I learned that my favorite ride, my Nissan 350 Z Roadster is kaput. It is a sad situation as it is a well-maintained, clean machine. The body is in excellent condition, with no dings or scratches, and new tires all around. I must admit, it was fun to drive, and it complemented my image.
The problem is the transmission. It requires repairs that cost more than the fair market value of the car. To be honest, this wasn’t a total surprise as it is a 2005 model, with 175,000 miles of drive time. Other components need to be replaced, as well, including a new AC compressor, and a motor for the retractable top. I am happy that I deferred those repairs. They would have been a total waste, throwing good money after bad. Even so, I expected to enjoy the Z a few more years. After all, as a two-car family, it was driven less than 11,000 miles per year.
If this had occurred earlier in my life it may have caused greater concern. Fortunately, I have flexibility and options. Neither my wife nor I must commute to a job requiring each of us to have a car. We are both entrepreneurs managing home-based businesses. That fact alone moderates the temporary loss of one car. Yes, we need transportation to meet with clients, vendors, and colleagues. However, as we control our schedules, we can work around that issue. We do not have children at home, especially teenagers who need transportation. If so, I would be a bit more stressed. Today, we have additional options such as Uber and Lyft. I can even contract a short-term car rental. Clearly, I have options to cope with the situation.
The loss of my Z is a minor inconvenience. We have a lifestyle that reduces our dependence on automobiles, and the resources to recover. It can be instructive, however, for businesses and families especially with the Covid-19 pandemic fresh in our minds. We have heard about companies hammered by the lock-down because their business models could not adapt. Conversely, other businesses were perfectly situated to thrive in the lock-down. Still, others adapted with minor adjustments. Understand, the pandemic and related mitigating factors were not a complete surprise. Prominent people had predicted that a pandemic was an imminent threat. Even so, I have not heard of a single company that took the warning seriously enough to develop contingency plans.
As you have deduced by now, this post is not about the loss of my Z. It is about the way we organize our personal and professional lives to cope with risk. Life’s challenges are unavoidable and come at you fast. Fortunately, most are predictable. Given recent experience, you may want to perform a risk assessment. Maybe even segregate risks by time frame, i.e., one to three years, three to five years, and over five years. Then, determine the actions required to minimize those risks and their associated costs. With that information, you can determine the funds to set aside. If the risk is insurable, you will know how much insurance to buy. At the end of this process, you will have the framework of a disaster recovery plan.
It is good to have options! I will miss my Z. Life goes on.
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James Weber is inviting you to a scheduled Zoom meeting of Great Careers-The BENG Featuring Mark Fonseca.
Mark will present “Is Your Revenue at Risk?”
Mark Fonseca
Mark Fonseca has over 20 years of experience in consultative sales, sales management, and client relations. As a top producer at Lanier Business Products, he sold document management solutions to a range of businesses and was prolific at establishing long-term relationships. Mark consults one on one with the most successful CEOs and Executives in Atlanta and has interviewed thousands of Executives and Business Professionals. He has experience in Sales, Sales Management, and Sales Training Best Practices. Currently, Mark is the owner of his own private men’s custom clothing and executive image consulting business. He has developed strong business relationships with heads of state, CEOs, top-level executives, and successful entrepreneurs, through one-to-one consulting and exceptional customer service. As a Partner in Pragmetrix, Mark is responsible for Client Relations, Business Development, and conducting interviews within the Pragmetrix Customer Loyalty Assessment process.
The features, benefits, and attributes that you use to describe and evaluate the product in research MUST match the product that you will bring to the market as closely as possible. Testing attributes that aren’t possible or too expensive may lead to unrealistic demand forecasts. For example, in testing a new online video game service, the research described the product as including hundreds of games from the top game publishers and a seamless interface and game-playing experience. Target consumer response to this concept was highly positive. However, when it was time to launch the product, many of the top game publishers were not included and the product required advanced drivers and high-powered PCs with very large RAM capacity to perform optimally. As a result, consumer expectations were never reached, and the product ultimately failed.
Qualitative Research (focus groups, depth interviews, ethnography) utilize small, non-projectable samples. Qualitative research is very effective in providing guidance, hypotheses development, and disaster prevention. However, because the samples are small and not representative of the entire target market, the detailed findings developed solely on the insights from qualitative research may be wildly different from the reality of the marketplace. Always follow up with quantitative, projectable research to confirm hypotheses!
consider using a down weighting scheme using historical empirical data to verify actual product take rates to survey results.Or, third, you may consider a hybrid approach, and instead of directly asking people for their own likelihood to buy, you ask them to project their forecast of what others would likely buy. In this way, you can overcome their personal… Share on XBut one of the best ways to overcome overstatement is to measure the likelihood to buy using a trade-off technique such as Discrete Choice or Conjoint Testing or MaxDiff. These techniques “force” respondents to make trade-offs and distinct choices of one product over the other, thus mitigating bias of direct questioning.
The most famous case illustrating this caveat is the Edsel. When developing the Ford Edsel, researchers tested various components of the car in isolation. They identified the preferred bumper, the preferred grill, the preferred dashboard configuration, and so on. When all the research was completed, they combined the top tested components together. But the car that resulted did not look or operate optimally. Utilizing one or more trade-off testing approaches such as Discrete Choice, Conjoint, or Max-Diff mentioned above will help to avoid this problem.
team so that either adjustment can be made to improve the product or that the launch can be canceled. I once conducted a pricing test for a new product that indicated that the target price that consumers were willing to pay was about $100. However, the cost to make and sell the product was about $200. Unfortunately, despite the obvious discrepancy, the client decided to launch the product at a price of $285. Suffice it to say, the product was a flop. So, not only do you need to tell the client bad news, they need to believe you and act accordingly.
I work with many startups and emerging brands. They have become the core of my business. It gives me great satisfaction in helping them with their recruiting needs. When my colleagues and I created ITB Partners, our strategy was to focus on this sector. Companies in this phase of their life cycle face decisions that carry significant risk. One or two bad choices can sink an otherwise viable company, even if they have proof of concept. We believed we could help emerging companies achieve success by avoiding business-killing mistakes. Recruiting new employees is one of those high-risk activities.
There is an old Chinese curse, “May you live in interesting times.“ 2020 was a difficult year, surreal even. We were challenged in ways we never imagined. Without a doubt, we have been living in interesting times.