Posts

The Big Picture of Business – Tribute to Dick Clark

First-ever article on Dick Clark, as a business case study. Motivating pop culture piece designed to foster better, more successful companies.

Dick ClarkThe passing of Dick Clark brought about widespread nostalgia and cultural interaction in our culture. Those of us who have known and worked with him will never forget his humor, his sense of fairness, his encouraging ways, the optimistic disposition, the gut instinct and the lasting impacts that he made on our later successes.

I started out my career by aspiring to be like Dick Clark. Thanks to great mentors, I learned to be my own best self, a visionary thinker and a repository of great case studies. I appeared on radio and TV with him, as well as on conference stages. It was he who encouraged your own leadership qualities, because your success ultimately honored him.

As a onetime radio disc jockey who evolved into a business guru, I offer this tribute to Dick Clark as a corporate and entrepreneurial study in excellence.

Dick Clark grew up working in a radio station in Utica, New York, perfecting the talk and the interest in music. He realized that music styles changed rapidly and that their cultural impact affected. When opportunity came calling, he was ready, willing and able. He replaced other DJ’s as host of a local bandstand show at WFIL-TV in Philadelphia, switching his musical emphasis from big bands and easy listening music to the emerging rock n’ roll. His bandstand show was a runaway hit and quickly was picked up by the ABC-TV network as a daily after-school show aimed at teens.

The success of ‘American Bandstand’ spawned a weekly TV music variety series from New York, ‘The Dick Clark Beechnut Show,’ which in turn inspired concert tours, ‘The Dick Clark Caravan of Stars.’ He appeared in movies, as a teacher in ‘Because They’re Young’ and a doctor in ‘The Young Doctors.’ He was clean-cut, respectful and mannerly, thus bringing legitimacy to rock n’ roll.

With the celebrity, he was hired to guest-star as an actor in TV shows such as ‘Stoney Burke,’ ‘Adam-12,’ ‘Honey West,’ ‘Branded,’ ‘Lassie,’ ‘Ben Casey,’ ‘Coronet Blue’ and ‘Burke’s Law.’ He played the last villain on the last episode of the ‘Perry Mason’ weekly TV series.

The 1963 move from Philadelphia to California launched Dick Clark Productions. Though ‘American Bandstand’ was owned by the network, he mounted what became a 50-year span of programs that he owned, produced and nurtured, including ‘The People’s Choice Awards,’ ‘Where the Action Is,’ ‘Live Wednesday,’ ‘American Dreams,’ ‘The Happening,’ ‘New Year’s Rockin’ Eve,’ ‘Academy of Country Music Awards,’ ‘Super Bloopers and Practical Jokes,’ ‘American Music Awards,’ specials, TV movies, game shows and more.

To go to his office and have meetings was like being in a museum. You sat at his desk in antique barber chairs, wrote on roll-top desks and enjoyed furnishings from nostalgic shops. Big band music played from a Wurlitzer juke box, and classic cars adorned the parking lot.

These are some of the principles that I developed myself but do credit being inspired by Dick Clark. I’ve taught them to others and shared with him as well:

  • As times change, the nature of ‘nostalgia’ changes. Each entertainment niche may not be your ‘cup of tea,’ but relating to others will create common bonds and exhibits leadership.
  • People are more products of the pop culture than they are of formal business training. They make strategic decisions based upon cultural memories. I would ask corporate executives to articulate core values, and they could only recite meaningful song lyrics, movie lines and quotes. That’s why I developed the Pop Culture Wisdom concept, to interpolate from the cultural icons into business jargon and workable policies.
  • Companies and industries need to embrace change sooner, rather than becoming a victim of it later. The entertainment industry is the best at being flexible, spotting new trends, changing with the times, packaging creative concepts and leading cultural charges. Other industries could well learn from the entertainment business practices.
  • Applying humility and humanity helps in bringing people together. Music is something that everyone relates to. Finding common ground about the zeal and joys inherent in running a company results in better buy-in and support of the goals.
  • A lot of people in show business asked Dick Clark for advice. He had a lot of wise business sense, and the best came from gut instincts. My gut is usually right. If something feels wrong, then it is. If it is a good move to make, then I cite precedents as to what led to that recommendation. Trusting your gut comes from long experience, for which there are no shortcuts.
  • Dick Clark was good about treating the teenagers as friends and with respect. He never came across as a scolding parent but rather as a friendly uncle. Long-term business success is a function of developing stakeholders and empowering them to do positive things with your company.
  • Dick Clark Productions had a select list of projects. The take-back for business is to grow in consistent fashion, sustaining the down times with realistic activities.
  • I recommend that organizations periodically revisit their earlier successes. Learn from case studies elsewhere in the marketplace. Review what you once did correctly and how your competitors failed. It is important to link nostalgia to the future. We can like and learn from the past without living in it.

Dick Clark liked to celebrate the successes of others. I’ve found that reciting precedents of successful strategy tends to inspire others to re-examine their own. Here are some other lessons that he taught us:

  • Be a mentor and inspire others.
  • Learn as you grow.
  • Periodically celebrate the heritage.
  • Be inclusive.
  • Be ethical.
  • Give the public more than you need to.

7 Levels of Mentoring and Lifelong Learning:

  1. Conveying Information. Initial exposure to the coaching process. One-time meeting or conference between mentors and mentees. The mentor is a resource for business trends, societal issues, opportunities. The coach is active listener, mentors on values, actions.
  2. Imparting Experiences. The mentor becomes a role model. Insight offered about own life-career. Reflection strengthens the mentor and shows mentee levels of thinking and perception which were not previously available to the mentee.
  3. Encouraging Actions. The mentor is an advocate for progress, change. Empowers the mentee to hear, accept, believe and get results. Sharing of feelings, trust, ideas, philosophies.
  4. Paving the Way. The mentor endorses the mentee…wants his-her success. Messages ways to approach issues, paths in life to take. Helps draw distinctions. Paints picture of success.
  5. Wanting the Best. Continuing relationship between the mentor and mentee. Progress is visioned, contextualized, seeded, benchmarked. Accountability-communication by both sides.
  6. Advocating, Facilitating. The mentor opens doors for the mentee. The mentor requests pro-active changes of mentee, evaluates realism of goals, offers truths about path to success and shortcomings of mentee’s approaches. Bonded collaboration toward each other’s success.
  7. Sharing Profound Wisdom. The mentor stands for mentees throughout careers, celebrates successes. Energy coaching and love-respect for each other continues throughout the relationship. Mentor actively recruits fellow business colleagues to become mentors. Lifelong dedication toward mentorship…in all aspects of one’s life.

Truisms of Careers and Business Success:

  • Whatever measure you give will be the measure that you get back.
  • There are no free lunches in life.
  • The joy is in the journey, not in the final destination.
  • The best destinations are not pre-determined in the beginning, but they evolve out of circumstances.
  • Most circumstances can be strategized, for maximum effectiveness.
  • You gotta give in order to get something of value back.
  • Getting and having are not the same thing.
  • One cannot live entirely through work.
  • One doesn’t just work to live.
  • As an integrated process of life skills, a career has its important place.
  • A body of work doesn’t just happen. It’s the culmination of a thoughtful, dedicated process…carefully strategized from some point forward.
  • The objective is to begin that strategizing point sooner rather than later

I’ll close this tribute to Dick Clark with some of the songs from American Bandstand that have applicability to business strategy:

“Did you ever have to make up your mind? It’s not often easy and not often kind. Did you ever have to finally decide? Say yes to one and let the other one ride? There’s so many changes and tears you must hide.” John Sebastian and the Lovin’ Spoonful (1965)

“Do you know the way to San Jose? In a week or two, they’ll make you a star. And all the stars that ever were are parking cars and pumping gas.” Sung by Dionne Warwick. Written by Burt Bacharach & Hal David (1968)

“Don’t you want me baby? You know I can’t believe it when I hear that you won’t see me. It’s much too late to find you think you’ve changed your mind. You’d better change it back or we will both be sorry.” The Human League (1982)

“How will I know if he really loves me? Tell me, is it real love? How will I know if he’s thinking of me? If he loves me… if he loves me not…” Whitney Houston (1986)

“See the girl with the diamond ring? She knows how to shake that thing. See the girl with the red dress on? She can dance all night long.” Ray Charles (1959)

“What is love? Five feet of heaven in a pony tail… the cutest pony tail that sways with a wiggle when she walks.” The Playmates (1958)

“What’s your name? Is it Mary or Sue? Do I stand a chance with you? It’s so hard to find a personality with charms like yours for me. Ooh wee.” Don and Juan (1962)

“Each night I ask the stars up above, why must I be a teenager in love?” Dion and the Belmonts (1959)

“Wouldn’t it be nice if we were older? Wouldn’t it be nice to live in the kind of world where we belong? Happy times together, we’d be spending. Maybe if we think and wish and hope and pray, it might come true.” The Beach Boys (1966)

“I’ve looked at life from both sides now. Those bright illusions I recall. I really don’t know life at all.” Judy Collins (1968)

“There ain’t no good guys. There ain’t no bad guys. There’s only you and me, and we just disagree.” Dave Mason

“Life goes on… after the thrill of living is gone.” John Mellencamp, “Jack and Diane” (1982)

“I’ve found the paradise that’s trouble-free. On the roof’s the only place I know, where you just have to wish to make it so.” Sung by The Drifters. Written by Carole King and Gerry Goffin (1962)


About the Author

Hank Moore has advised 5,000+ client organizations worldwide (including 100 of the Fortune 500, public sector agencies, small businesses and non-profit organizations). He has advised two U.S. Presidents and spoke at five Economic Summits. He guides companies through growth strategies, visioning, strategic planning, executive leadership development, Futurism and Big Picture issues which profoundly affect the business climate. He conducts company evaluations, creates the big ideas and anchors the enterprise to its next tier. The Business Tree™ is his trademarked approach to growing, strengthening and evolving business, while mastering change. To read Hank’s complete biography, click here.

The Big Picture of Business: Been There, Done That

People Often Say They Have… But Really Haven’t! How to Pick the Right Consultants for Your Company

Selecting the most appropriate consultant for your company and optimizing their expertise is the greatest challenge facing a decision maker.

It’s lonely at the top. Certain kinds of objective information cannot come from within your own camp.

True expertise is a rare commodity, and the successful company utilizes it on the front end, rather than on the costly back end.

Matching consultants with actual and emerging company needs is the corporate leader’s quest. With a wealth of expertise available via outsourcing, one can quickly become a ‘kid in a candy shop,’ wanting whatever is readily available or craftily packaged.

Too many consultants mis-state and over-represent what they do, stemming from:

  • Eagerness to get business.
  • Short tenure in consulting, believing that recent corporate experience readily translates to the entrepreneurial marketplace.
  • Unfamiliarity with the actual practice of consulting at the executive level.
  • Lack of understanding about business needs, categories, subtleties and hierarchies.
  • Failure to create service area niches and target clients.
  • Professional rivalry with other consultants, resulting in the ‘I can do that’ syndrome.

Everyone knows that dentists, nurses, social workers and respiratory therapists are all health care professionals. Yet, distinctions in their expertise lead consumers to discern and seek out specialists… or at least ask a general practitioner physician to make referrals for necessary services.

Niche consultants place emphasis in the areas where they have training, expertise and staff support for implementation… and will market their services accordingly. An accounting firm may suggest that an economic forecast is a full-scope business plan (which it is not). A trainer may recommend courses for human behavior, believing that these constitute a Visioning process (of which they are a small part). Marketers might contend that the latest advertising campaign is equivalent to re-engineering the client company (though the two concepts are light years apart).

Niche consultants believe these things to be true, within their frames of reference. They sell what they need to sell, rather than what the client really needs. Let the buyer beware.

Consultants Are Not All Alike

Distinctions must be drawn into three consulting categories (and percentages of their occurrence in the marketplace):

  1. Vendors sell products which were produced by others. Those who sell their own multiply produced works are designated as subcontractors. (82.99 percent)
  2. Consultants conduct programs designed by their companies, in repetitive motion. Their work is off-the-shelf, conforms to an established mode of operation, contains original thought and draws precedents from experience. (17 percent)
  3. High level strategists create all knowledge in their consulting. It is original, customized to the client and contains creativity and insight not available elsewhere. (0.01 percent)

As one distinguishes past vendors and subcontractors, there are six types within the 18 percent which constitute consultants (with their percentages in the marketplace):

  1. Those who still lead in an industry and have specific niche expertise. (13.5 percent)
  2. Those who were downsized, out-placed or decided not to stay in the corporate fold and evolved into consulting. (28 percent)
  3. Out of work people who hang out consulting shingles in between jobs. (32 percent)
  4. Freelancers and moonlighters, whose consultancy may or may not relate to their day jobs. (16 percent)
  5. Veteran consultants who were trained for and have a track record in actual consulting. That’s what they have done for most of their careers. (2 percent)
  6. Sadly, there is another category… opportunists who masquerade as consultants, entrepreneurs who disguise their selling as consulting, people who routinely change niches as the dollars go. (8.5 percent)

99.99999 percent of actual management consultants come from five basic career orientations and fit onto one of the five branches of The Business Tree:

  1. Technical or niche industry orientation.
  2. Financial.
  3. Entrepreneurial, small business management.
  4. Academic, research.
  5. Human resources management.

The remaining 1/100,000 of a percent of consultants is a rare breed… a Big Picture strategist, fitting onto Categories 6 and 7 (trunk and roots of The Business Tree). The Corporate Strategist is an idea person who has run businesses, knows about all other categories, deals in concepts and policies, and possesses sophisticated understanding and insight.

What They Claim They Do

When They Say They Provide They’re Usually
Growth strategies Sales trainers
Company turnaround Marketers
Information for business solutions Accountants

 
Choosing Consultants

These pointers are suggested in the selection of business advisors and consultants. Ask a true business strategist to help you to determine which consultants are needed, draft the requests for proposals, evaluate credentials and recommend contracting options.

Understand what your company really needs and why. Don’t pit one consultant against another, just to get free ideas. Don’t base the business on ‘apples to oranges’ comparisons.

Ask for case studies which were directly supervised by the person who will handle your business… not stock narratives from affiliate offices or a supervisor. Find out their expertise in creating and customizing for clients… rather than off-the-shelf programs which they simply implement. Determine their abilities to collaborate and interrelate with other consultants.

In budgeting for and pricing consulting services, budget for consulting at the start of the fiscal year, averaging 10 percent of gross sales. This does not include marketing, which should be another 10 percent.

See consulting as an investment (short-term and long-term), not to be short-changed. Every size of business needs consultants, just as your clients need your services. The company which makes the small investment on the front end (consulting) saves higher costs. Research shows that consulting fees foregone are multiplied six-fold in opportunity costs each year that action is put off.

Consulting fees are best compensated by the hour. The client who contracts a quantity of time may request a volume discounted fee. It is customary to pay for all consultations after the initial ‘get acquainted’ session.

Out-of-pocket expenses are customarily passed through to clients, without markup. For project purchases, such as printing, graphic production, video production and materials creation, consultants customarily mark up slightly, to cover bank financing and handling costs.

Questions to consider in evaluating consultants include:

  • Would you feel comfortable if they ran your company?
  • What is their longevity? Were they consultants 10-20 years ago? Real consultants must have at least a 10-year track record to be at all viable as a judgment resource.
  • What is their maturity level? Could they appear before a board of directors?
  • How do they meet deadlines, initiate projects and offer ideas beyond the obvious?
  • If one level of consultant sells the business, will this same professional service your account? Big firms usually bring in junior associates after the sale is made. Demand that consultants of seniority staff the project.
  • How consistent are they with specific industries, types of projects and clients?
  • How good a generalist are they? Consultants with too narrow a niche will not ultimately serve your best interests.

Professional status is important. Prospective clients should inquire about the consultant’s respect among current and recent clients and reputation among affected constituencies within the business community. Look at their activity in professional development and business education. If they do not pursue a program of ongoing knowledge progression, they are obsolete and not valuable to clients.

Also examine potential consultants regarding their own track record at mentoring other business professionals. Check to see that they give beyond the scope of billable hours. Pro-bono community involvement is a factor because it indicates character, ethics and integrity. If they have done little or none, they are not worth hiring. Top professionals know the value of giving back to the community that supports them, becoming better consultants as a result.

The ideal consultant:

  • Clearly differentiates what he/she does… and will not presume to ‘do it all.’
  • Is a tenured full-time consultant, not a recently down-sized corporate employee or somebody seeking your work to ‘tide themselves over.’
  • Has actually run a business.
  • Has consulted companies of comparable size and complexity as yours.
  • Has current references and case histories.
  • Gives ‘value-added’ insight… in contrast to simply performing tasks.
  • Sees the scope of work as a professional achievement…rather than just billable hours.
  • Pursues client relationship building…as opposed to just rendering a contract service.

About the Author

Hank Moore has advised 5,000+ client organizations worldwide (including 100 of the Fortune 500, public sector agencies, small businesses and non-profit organizations). He has advised two U.S. Presidents and spoke at five Economic Summits. He guides companies through growth strategies, visioning, strategic planning, executive leadership development, Futurism and Big Picture issues which profoundly affect the business climate. He conducts company evaluations, creates the big ideas and anchors the enterprise to its next tier. The Business Tree™ is his trademarked approach to growing, strengthening and evolving business, while mastering change. To read Hank’s complete biography, click here.

The Big Picture of Business: Corporate Communications – Correctly Positioning Your Company

Evolution of Corporate Communications Activity

In many professions, the idea of full-scope, sophisticated positioning has been foreign up until now. Business development has occurred primarily by accident or through market demand.

Because of economic realities and the increased numbers of firms providing comparable services, the notion of business development is now a necessity, rather than a luxury.

Competition for customers-clients is sharpening. The professions are no longer held on a pedestal… a condition which mandates them to portray or enhance public images.

As companies adjust comfort levels and acquire confidence in the arena of business development, there is a direct relationship to billings, client mix diversity, market share, competitive advantage, stock price and levels of business which enable other planned growth.

Public perceptions are called credence goods by economists. Every organization must educate outside publics about what they do… and how they do it.

This holds for corporate operating units and departments. You must always educate corporate opinion makers on how you function… and the skill with which you operate.

Gaining confidence is crucial… as business relationships with professionals are established to be long-term in duration.

Each organization or should determine and craft its own character and personality… seeking to differentiate from others. That appeals to professionals within your own staff, those professionals whom your firm would like to attract and clients.

Top management must endorse corporate imaging and other forms of practice development, if your company is to grow and prosper. Few companies can even sustain present levels of sales without some degree of business development.

Some people in your organization will devote much time to promotions, public relations, marketing and advertising. This quality should be recognized and rewarded… since professionals with a sense of business direction play an important part in company growth.

Be it a ‘necessary evil’ or not, corporate imaging activity can be accomplished with skill and success…provided that organizations follow the advice of professional communicators.

Companies must maintain a delicate balance between seeking new business, replacing lost clients and nurturing client relationships. Operating units and departments must schedule and follow a program to market their worth to their companies.

No matter what time allocation basis is selected by the organization, it is vital that some basis exists in writing and in execution.

Guidelines and Customs to be Observed in Corporate Communications

The professional organization that evokes a caring image – and backs it up with service – will prosper in today’s marketplace.

In image building, the following ideas should be considered:

  • Your company and profession fill essential needs of society.
  • Each key staff member represents a learned profession.
  • Qualities that denote your company include skill, expertise, objectivity and independence.
  • Work and abilities of your employees are diverse and creative.
  • Your key management team is dynamic, in terms of business issues.
  • The marketplace is rapidly expanding and is an excellent career choice for young people.
  • Your team encompasses multi-dimensional professionals…concerned with much more than the immediate responsibilities of the work at hand.
  • Recognize the role of professional communicators. Seek qualified counsel.

Corporate Communications Program – Essential Ingredients

Strategic Plan

  • Mission statement.
  • Visioning document.
  • Goals and objectives.
  • Tactics.
  • Timeline for implementation.
  • Benchmarks for measurement.

Policies and Procedures

Investor Relations Program

Public Relations Program

  • Complete generic press kits.
  • Guidelines on working with the media.
  • Pointers on training staff and volunteers as media spokespersons.
  • Company collateral literature system.
  • Guidelines on arranging speeches, seminars and town hall meetings.
  • Ways to improve local community and government relations.
  • Opinion pieces and bylined articles on key topics, suitable for placing in newspapers under local bylines.
  • Formula press releases and features, which can be locally customized.
  • Other components of a program which can and should be customized.

Marketing Program

  • Internet.
  • Sales support.
  • Business development.
  • Direct marketing.
  • Indirect marketing.
  • Advertising.
  • Business-to-business promotions.
  • Industry and professional marketing.
  • Point-of-purchase materials.
  • Collateral materials.

Job Descriptions (Position Results Oriented Descriptions)

Staff Training Program

Corporate Communications Manual

  • Overall Philosophy and Writing Style.
  • Statements to Make Publicly.
  • Letters.
  • Forms.
  • Statements.
  • Customer Comment Cards.
  • Customer Service Correspondence.
  • Sales Manual.
  • Graphics Standards.

Crisis Plan

  • Risk management team.
  • Preparedness.
  • Contact numbers.
  • Plan for emergencies.
  • Case studies.
  • Company profiles.
  • Preventive programs to keep crises from occurring.
  • Training and testing.
  • Timeline for implementation.
  • Benchmarks for measurement.

Compensation, Benefits and Other Financial Plans

Accounts Payable and Accounts Receivable Plans

Continuous Quality Improvement Program

Ethics Statement

Literature and Audio Visual Programs Which Portray Company Image

Special Financial Publics Program

Internal Auditing and Assessment Program

Government Relations Program

Community Relations Program

Staff Development and Professional Enhancement Program

Conflict Resolution and Arbitration Plans

Corporate Philanthropy Program

Contingency Program for Specified and Unplanned Emergencies


About the Author

Hank Moore has advised 5,000+ client organizations worldwide (including 100 of the Fortune 500, public sector agencies, small businesses and non-profit organizations). He has advised two U.S. Presidents and spoke at five Economic Summits. He guides companies through growth strategies, visioning, strategic planning, executive leadership development, Futurism and Big Picture issues which profoundly affect the business climate. He conducts company evaluations, creates the big ideas and anchors the enterprise to its next tier. The Business Tree™ is his trademarked approach to growing, strengthening and evolving business, while mastering change. To read Hank’s complete biography, click here.

The Big Picture of Business: Lessons About Business Planning To Be Learned from the Y2K Bug

The U.S. economy spent between $800 billion and one trillion dollars fixing and treating the so-called Y2K Bug. Certainly, aspects of the bug were treated successfully, and troubles were averted because of professional actions. No doubt, public hype contributed to a ‘sky is falling’ situation that made computer consultants rich.

Technology constitutes less than 1% of any organization’s overall Big Picture. Computer activity constitutes less than 1% of the technology picture. Thus, efforts to treat a fraction of one percent took resources away from addressing the other 99.999% of companies’ full-scope planning.

My concern was that money was diverted from most other aspects of organizational wellness toward treating one symptom of one disease. I advocated a balanced approach toward planning, visioning and the Big Picture.

Rather than bash those who neglected other aspects of the organization in favor of Y2K Readiness, let’s refocus what we did and learned toward other future applications.

Among the lessons which we learned from the Y2K Bug exercise were:

  • When they want to do so, company leadership will provide sufficient resources to plan for the future, including crisis management and preparedness (of which computer glitches are one set of ‘what ifs.’)
  • When they want to do so, company leadership will provide leadership for change management and re-engineering… two of the many worthwhile concepts that should be advocated every business day.
  • People are the company’s most valuable resource, representing 28% of the Big Picture. Today’s work force will need three times the amount of training that it presently gets in order for the organization to be competitive in the millennium.
  • Change is good. Like change… don’t fear it. Change is 90% positive. Without always noticing it, individuals and organizations change 71% per year. The secret is to benefit from change, rather than become a victim of it.
  • Pro-active change involves the entire organization. When all departments are consulted and participate in the decisions, then the company is empowered.
  • Fear and failure are beneficial too. One learns three times more from failure than from success. Failures propel us toward our greatest future successes.
  • When we work with other companies and the public sector, we collaborate better. All benefit, learn from each other and prepare collectively for the future.
  • In the future and in order to successfully take advantage of the future, make planning a priority, not just a knee-jerk reaction.

Calculating Each Organization’s High Costs

People and organizations are wont to throw money at things that pop up at the moment or that look good at external publics. It is easier to tinker with machines than to admit that the organization has deep management and philosophical issues. After all, 92% of all organizational problems stem from poor management decisions.

Our society is infested with the band-aid surgery way of treating things as they come up. This approach costs six times that of doing things correctly on the front end… meaning planning, sequential execution and benchmarking progress.

Each year, one-third of the U.S. Gross National Product goes toward cleaning up problems, damages and otherwise high costs of doing either nothing or doing the wrong things.

On the average, it costs six times the investment of preventive strategies to correct business problems (compounded per annum and exponentially increasing each year). In some industries, the figure is as high as 30 times…six is the mean average.

The old adage says: “An ounce of prevention is worth a pound of cure.” One pound equals 16 ounces. In that scenario, one pound of cure is 16 times more mostly than an ounce of prevention.

Human beings as we are, none of us do everything perfectly on the front end. There always must exist a learning curve. Research shows that we learn three times more from failures than from successes. The mark of a quality organization is how it corrects mistakes and prevents them from recurring.

“They can’t hang you for saying nothing,” quipped President Calvin Coolidge in the 1920’s. He spent more time doing chores at his farm and taking long naps than taking care of the nation’s business. Coolidge prided himself upon doing little and, thus, failed to see crises brewing during his presidency. This ‘keep your head in the sand’ mentality is prevalent of people who move on and let others clean up the damage.

Doing nothing becomes a way of life. It’s amazing how many individuals and companies live with their heads in the sand. Never mind planning for tomorrow… we’ll just deal with problems as they occur. This mindset, of course, invites and tends to multiply trouble.

7 Categories of High Costs

  1. Cleaning Up Problems. Waste, Spoilage. Poor controls. Down-time. Lack of employee motivation and activity. Back orders because they were not properly stocked. Supervisory involvement in retracing problems and effecting solutions.
  2. Rework. Product recalls. Make-good for shoddy or inferior work. Poor location. Regulatory red tape. Excess overhead.
  3. Missed Marks. Poor controls on quality. Fallout damage from employees with problems. Undercapitalization. Unsuccessful marketing. Unprofitable pricing.
  4. Damage Control. Crisis management. Lawsuits incurred because procedures were not upheld. Affirmative action violations. Violations of OSHA, ADA, EEOC, EPA and other codes. Disasters due to employee carelessness, safety violations, oversights, etc. Factors outside your company that still impede your ability to do business.
  5. Recovery and Restoration. Repairing ethically wrong actions. Empty activities. Mandated cleanups, corrections and adaptations. Employee turnover, rehiring and retraining. Isolated or unrealistic management. Bad advice from the wrong consultants. Repairing a damaged company reputation.
  6. Retooling and Restarting. Mis-use of company resources, notably its people. Converting to existing codes and standards. Chasing the wrong leads, prospects or markets. Damage caused by inertia or lack of progress. The anti-change ‘business as usual’ philosophy. Long-term expenses incurred by adopting quick fixes.
  7. Opportunity Costs. Failure to understand what business they’re really in. Inability to read the warning signs or understand external influences. Failure to change. Inability to plan. Over-dependence upon one product or service line. Diversifying beyond the scope of company expertise. Lack of an articulated, well-implemented vision.

Remediating the High Costs

7 Primary Factors of The High Cost of Doing Nothing™:

  1. Failure to value and optimize true company resources.
  2. Poor premises, policies, processes, procedures, precedents and planning.
  3. Opportunities not heeded or capitalized.
  4. The wrong people, in the wrong jobs. Under-trained employees.
  5. The wrong consultants (miscast, untrained, improperly used).
  6. Lack of articulated focus and vision. With no plan, no journey will be completed.
  7. Lack of movement really means falling behind the pack and eventually losing ground.

What Could Have Reduced These High Costs:

  1. Effective policies and procedures.
  2. Setting and respecting boundaries.
  3. Realistic expectations and measurements.
  4. Training and development of people.
  5. Commitments to quality at all links in the chain.
  6. Planning.
  7. Organizational vision.

7 Levels of Handling Problems, Determining Effectiveness

  1. Do Nothing. Think that things will work themselves out or that causes of problems will go away. Research shows that doing nothing results in creating 3-6 more affiliated problems.
  2. Deny, Actively Avoid. Don’t see problems as such. Keep one’s head in the sand and remain impervious to warning signs of trouble. Go to great lengths to put positive spins on anything that may point back to one’s self, department or organization as being problematic.
  3. Cover Up. Cover-ups cost 6-12 times that of addressing problems upfront. In addition to financial, cover-up costs can include the effects upon morale, activity levels, productivity, decision making, creativity, adaptation and innovation. Even after the cover-up has fully played out, there is an additional cost: the period of recovery and restoration of confidence.
  4. Partially Address. Perform band-aid surgery, at such time as action is demanded. Address signs and symptoms, without addressing root causes. This shows that something is being done, but it is often the wrong thing at the wrong time.
  5. Handle in Politically Correct Terms. Some problems are addressed, partially or fully, because bosses, regulators or stakeholders expect it. Some are handled for fear of repercussion. This motive results in tentative actions, with lip service paid to deep solutions.
  6. Address Head-On. Problems are, of course, opportunities to take action. Everyone makes mistakes, and success lies in the way that problems are recognized, solved and learned from. The mark of a true manager is to recognize problems sooner, rather than later. The mark of an effective leader is the ability and willingness to take swift and definitive actions. The mark of an empowered team is its participation in this process. The mark of a successful organization is its endorsement and insistence upon this method of action.
  7. Address in Advance, Preparing for Situations. Pro-actively study for patterns. 85% of the time, crises which are predicted, pre-addressed and strategized are averted. The skill in pre-managing problems is a fundamental tenet of a quality-oriented organization.

If postured properly, the process of planning and visioning remediates opportunity costs before they occur. Running a profitable and efficient organization means effectively remediating damage before it accrues. Processes and methodologies for researching, planning, executing and benchmarking activities will reduce that pile of costly coins from stacking up.


About the Author

Hank Moore has advised 5,000+ client organizations worldwide (including 100 of the Fortune 500, public sector agencies, small businesses and non-profit organizations). He has advised two U.S. Presidents and spoke at five Economic Summits. He guides companies through growth strategies, visioning, strategic planning, executive leadership development, Futurism and Big Picture issues which profoundly affect the business climate. He conducts company evaluations, creates the big ideas and anchors the enterprise to its next tier. The Business Tree™ is his trademarked approach to growing, strengthening and evolving business, while mastering change. To read Hank’s complete biography, click here.

The Big Picture of Business: The Realities of Networking

This essay has taken 50,000 hours of my life to write. From wasted and misspent time come perspective and wisdom.

Networking can be and should be a wonderful thing. In theory, you meet people, share ideas and grow richer for the experience. Indirectly, it enhances the climate in which business is done.

Ostensibly, all participants benefit from the synergy.

If one is growing from networking and all parties benefit, it works well. Unfortunately, one can get caught in a trap of being on the short end of the equation. One can wake up, realize their energy has been zapped and experience setbacks in their business because he-she was spending disproportionate time on networking.

These pointers are offered to help manage time and resources. Business organizations are like trees. They seemingly look the same from day to day and will live forever. To the untrained eye, most resemble each other. After all, they are just trees (companies)!

This essay is not to discourage networking. It stimulates questions about your own wants, desires, experiences, gains, losses and changing perspectives in the game of ‘give and take’.

By curbing old behavior patterns, you may feel less-used and get more out of future networking. By analyzing the true motives for networking (yours and other people’s), one can avoid hurt feelings and letdowns. By approaching the process with a realistic attitude, positive outcomes of future efforts will pay better dividends.

Categories of Networking

Professional Networkers. For some people, it is their job to network, on behalf of their companies. They are given salaries, expense accounts, support staff and a company machine which sees business development and lobbying value in their work. These people jockey for favor with the power structures and are accorded community standing based upon the reputation-value of their company. People defer to them because of the wealth of their companies. They regularly squire stakeholders to charity events at corporate-purchased tables. None of their community stewardship comes out of their own pockets. Some of these people get the ‘big head’ and think of themselves as local celebrities. They get a rude awakening when they leave their job.

Hobbyist Networkers. These people want to get involved, partly for business and partly to interface with the community. When they network, it means dollars, resources and time out of their own pockets. They exchange ideas, swap cards, engage in base-level volunteer work and participate in several concurrent networks. They are also valued according to the reputation of their companies, directly commensurate to how much money they give to charities and business organizations. In-kind donations (especially their time) are not valued as highly as money. It is unfair to stack them against professional networkers, but the community does. Since many are small business people, solo practitioners, sales force members and entrepreneurs, they make great sacrifices to network… usually much more than the payoff.

Niche Networkers. These people may have started with the shotgun effect but have narrowed down. They network through trade associations, chambers of commerce, leads groups, conventions and other sources which are primarily devoted to business. They staff committees and events, hoping to generate more leads. The longer they network, the better they get at niche marketing. They cannot be all things to all people.

Social Networkers. Business networking receptions became the ‘singles bars’ of the 1980s and 1990s. Breakfast clubs carved their own niche… a balance of business, community and social networking. The same holds true with the ‘rubber chicken circuit’ (clubs, associations and coalitions of networking groups). Just like the 1970s night club scene, people went into situations indiscriminately looking. They wanted to get something but were not quite sure what. Some really believed a chance meeting in a bar would produce Mr. or Ms. Right. They came out unfulfilled because they didn’t really have clear objectives going in. The same is true with networking. The ideal customer doesn’t ‘discover you’ across a crowded room.

Wanna-Be Networkers. These people try to network anywhere and everywhere. They are in your face, at every turn. Their sense of accomplishment is in the quantity of business cards collected, lunches arranged and referral calls generated-completed. They network for the sake of networking… rarely with targeted purpose. Their opening line is: “What do you do?” Sizing you in terms of immediate benefit to them, they either probe further or move on. Usually, they are selling something and focus upon one of the niches listed above.

The Kind of Networking That Should Exist. This is the category that rarely exists. Senior executives do not really have networks of our own. Our junior staff members populate the trade associations, chambers of commerce and service organizations. Top executives isolate themselves from people with differing opinions. They say they crave roundtables with fellow seasoned executives but rarely attend. Inevitably, when high-level forums are organized, the juniors, mid-managers and self-marketers infiltrate and take over… which chases us away. Veteran executives meet on the charity party circuit, in board meetings and sometimes socially. Some commercial programs cater to this market but are usually populated by entrepreneurs on the way up. In the main, the top corporate strata is without an effective mechanism to network, share high-level ideas-experiences, get stimulated to overcome burnout and move toward higher plateaus. That’s why many senior business leaders wear down or retire earlier than they should.

Red Flags in the Network

I Knew You When. They see you as they once did. They connect with the old commonalities and find it hard to see the evolution that you have made. Try to enlighten them, and they convert it all back to their old frame of reference, with questions like “Do you still talk to X?” or “Whatever happened to Y?” or “Remember the time when Z happened?”

Gurus of Networking. These are often the worst violators of the process. They want you to be there for them and those whom they refer to you. Yet, try to get something meaningful out of them. When you set boundaries to your free access, they cut you out of their network. That’s not entirely bad, since you were likely peripheral to it in the first place.

Who Do You Know Who… In networking, the person who wants something stands three or four steps away from their ultimate target. As a member of the network, you are usually one of several conduits in their quest. It’s tough to not be consulted as an expert, but rather as a step on someone else’s journey.

You Once Did ____. Now I Want ____. Just because you once spoke to their business club, attended a workshop with them or served on a volunteer committee, they keep coming back to you for free work. To them, there is no statute of limitations on free access to your time, influence, resources or abilities.

X Says I Can Pick Your Brain. X probably gave your name to get rid of them. X doesn’t really value your time or would have asked in advance if you could be periodically referred. Try referring callers back to X as really being the ‘best person’ for them to consult. Tell them that X is far too modest and is your expert in that area. That will stop X from referring unsolicited nuisance callers.

If You ____, It Will Lead to Business. They always say that so you will volunteer to help their pet cause or serve their momentary need. People wave any carrot that will help to get what they want, think they need or wish they had. Entrepreneurs and service providers are easy targets to entice with the promise or glimmer of future business. Tell the networkers that you will do what they ask but only in reciprocation after the business transpires. Request a ‘show of good faith’ gesture from them in the first place.

Adopt My Interests. It’ll Be Good for You. This is the previous ploy with a new coat of paint. These people couch their requests in terms of your benefit. They just know that supporting their interests will get you somewhere and quickly add that it will be fun, as well. Don’t be fooled. The same requests go out to all whom they approach.

Feeding Egos in Hopes of Getting Somewhere. Many people do things to get noticed by others, in hopes they can do something for us. So, we serve on their volunteer committees, convinced they will think well of us…enough to speak well of us to still others. The problem is ‘they’ want to be noticed by others and only want committee members to support their agenda. You will likely be perceived as a conduit or support mechanism to their causes and objectives.

Circuitous Routes to Get What You Think You Want. Many of us do things for reasons for which we are not quite sure. Spending time networking or volunteering for projects seems like a good idea at the time. Surely benefits will accrue. I’m not saying that people should create agendas for every act or action. However, one must recognize and curb patterns of doing things for nebulous reasons, from which nebulous outcomes always emanate.

Have You Got a Card? That means they will be calling you for their own networking purposes. If you don’t want to get their calls, either say you are out of cards or tell them the truth… that you’re trying to cut down on networking activity. They’ll move on to someone else. Most of the time, they’re not after you… any warm body will do. Being completely upfront about setting your boundaries helps you feel better and deters future unsolicited calls.

Hard Core Clueless. Some people simply don’t know or care where you’re coming from. They are self-serving networkers and offer nothing for you. There is no converting them to your more enlightened way of thinking and operating. Spot them and avoid them.

People Who Refer You for Freebies – But Not for Business

I once agreed to meet to discuss serving on a non-profit board with an influential business executive, whose account I sought for my company. He had been using a pale-by-comparison, low-expertise competitor, and I thought he surely would want to grade up to the best. By knowing and working with me, he would discern excellence, switch his business to my company and be better off for it.

In the get-acquainted meeting, the executive explained that he did not mix business with volunteer work. He stated that I was a good person to serve on the board and give away my time, yet the incumbent agency had his business. That was his belief, and he wouldn’t change it. Curiously, his own business was predicated upon community goodwill, and he owed his fortune to the public appearance of being a good citizen.

So why, then, should I waste my time serving on his board? He started dangling carrots of potential business from other board members. I fell for the bait and regretted it after the first board meeting. Other members had like minds to the executive who recruited me. They had their network of business resources and referrals, and I was not part of it.

I gracefully bowed out, citing the press of business and over-commitment to other volunteer work. The board member took it as a slap in the face, proclaiming that we would never get any work from him. After all, it was my job to curry community favor. How dare I meet to consider volunteering and then pull out? He found other warm bodies. Curiously, that charity has been clouded by public investigations of questionable ethics and dubious fund-raising practices. I sensed that at the time…which was the other reason why I walked away.

Lesson Learned: Set boundaries up front. Tell them that you only volunteer on committees of people who have the willingness and actually do business with each other, if that’s your objective for participating. Let it be known that your volunteer time is a reward to those who support your company…not a prerequisite to being considered. Remind inquirers that you must be successful in your business first… in order to be in a position to give back to the community.

They Don’t Care What You Think – Just Do What They Want

Public officials are notorious for this. They make it clear that you are important to them. Once you give a contribution or volunteer time to their initial campaign, you are pigeon-holed on the solicitation mailing list. Then, it is hard to convert to another level in their minds.

Public officials spend your contributions hiring young, inexperienced staff members and rely upon them for advice. They pay great sums to so-called ‘political consultants’ but will not consider asking CEOs and seasoned business executives for meaningful policy advice. And the consultants with whom they contract are usually out-of-towners or those who have not ‘paid their dues’ to the community.

Try offering your advice-counsel, and it falls on deaf ears. Try to get them to open doors or somehow return the favors. You’ll quickly see how they aren’t available, forgot that they owed you a return courtesy and resent being asked for ‘quid pro quo’. Only money or volunteer time are wanted, thank you. Even though they decline or avoid you, the fund raiser invitations keep coming in the mail.

Lesson Learned: Set boundaries up front. Tell political candidates how you expect and are willing to be utilized. Give expertise on the front end, not money. If you want to be their advisor, tell them so. Don’t expect them to read your mind, after the fact.

Caring When Others Don’t

Some people will always go the extra distance for their organizations. They are consummate professionals and give their all to the company. They pursue professional development on their own time, bear personal monies to further the job, participate in community and volunteer activities and serve on committees. They have perfect attendance, rarely use all vacation days and don’t know what a coffee break is.

Yet, many of their colleagues do the bare minimum to get by. These people learned the Peter Principle and enjoy the same pay and benefits as those who knock themselves out. And they always take more days off. The system allows them to continue, without accountability or the stimulation to try harder.

The active few say they are setting an example by which others will follow. Who? When? Why should the non-involved join the active few, at this late date?

Those of us who have been the ‘active few’ in our organizations did not understand why the ‘non-active many’ did not behave accordingly. We sometimes begrudged the others for not doing their share. Yet, we kept on being active… as if it were a mission to the death.

Lesson Learned: Understand your true motives for going the distance. If you’re really doing it for your own enjoyment and fulfillment, you’re rare. Realities dictate that we all do some things for the good of the company, the job, the community and others. Keep it in balance. Don’t cheat yourself because you are spending energies on the ‘non-active many,’ mostly people who could care less.

Leadership Programs

Community stewardship – for the right reasons – is wonderful. Every executive must devote quality time toward volunteer work, service on boards and community involvement. It builds character, helps their career, showcases their company and pays dividends to the community.

Service in community activities is one of the few win-win propositions. It should be nourished and cherished. Senior executives must mentor young people on their obligations to give back to the community in classy, meaningful and definable ways.

Leadership programs exist in every major city. I went through one and followed with six years on their board of directors (their longest tenured board member). I innovated programs which brought acclaim, prestige, fund-raising, community collaborations and more to that organization.

It was one of the most important things I ever did. It also provided material for this essay, as well as my earlier chapter, ‘Has Beens, Never Wases and Wanna-Bes.’ That was because of the intense jealousy, inflated egos, unrealistic images and ill-planned projects of many of the members.

My reflection and analysis of the leadership program to which I gave 1,700 hours of my time (and covered all expenses out of my pocket) includes the following:

  • Professional Networkers dominate the organization. They are generally mid-managers from corporations, who use the name on the letterhead and the carrot of corporate donations to be treated royally. Most seek from leadership programs what they do not have at the office: prestige, name recognition and power.
  • People who work for non-profit organizations also populate leadership programs. Again, they’re getting what they may not get from their own boards, employees and employees.
  • There are plenty of Hobbyist Networkers…some just for the resume credit and others to troll for business.
  • Political wanna-bes use the organization as a launching pad. They use the mailing list as a fund-raising strategy. Members pressure others to host coffees, attend fund raisers and donate pro-bono time to campaigns. Heaven forbid that you ask for a networking favor in return, because, once elected, they quickly forget you.
  • Public officials who were graduates of the leadership program henceforth use the organization as a bully pulpit for their ideologies, positions and initiatives. Members either support them or are ostracized by the program’s officers.
  • Members besiege each other – with or without the official mailing list – for networking purposes. Someone who barely spoke to you in the program now wants to get you into their multi-level marketing program. Corporate lobbyists assume that you’ll support their initiatives because you are a fellow graduate of their leadership program. You’re on fund-raising mailing lists for everyone’s pet charity. People selling everything from stocks to used cars badger you… under the banner of the leadership program.
  • Then, there were the handful of us who were there for meaningful dialog, relationship building, community synergy and leadership development. Oh, well!

Lesson Learned: All of this sounds like high school student council, doesn’t it? The same personality types tend to be attracted to leadership programs, along with the networkers. No organization is ideal or idealistic. Politics and hidden agendas are everywhere. If the benefits outweigh the negatives, then it was worthwhile. In my opinion, leadership program benefits are infinitely greater than the downsides. Learning stems from perspectives. My learning from leadership programs has far outweighed the other useless and wasted networking initiatives detailed earlier in this essay.

How Quickly They Forget

Some people are creative and innovative. They craft concepts and then turn them over to others to implement or perpetuate. Recipients of other people’s achievements will try to mold them as their own, injecting their touch. Often, it’s not as good as the original creation. The more that people tinker with the concept, it gets watered down. Egos of the latters won’t allow them to consult or involve the originator. In time, the latters will claim it as their brainchild and will not acknowledge the innovator.

I recall creating at least 30 such concepts that took circuitous and downward paths after turning them over to others. Sometimes, my only involvement was destined to be on the front end… giving concepts to fresh faces, with the chance to blossom and grow. Sometimes, the recipient organizations were so ungrateful for the innovation or clueless as to its value that I backed away. Sometimes, the concepts were only meant as one-time projects or to have short-term lives… though others chose to milk a good thing beyond its effectiveness.

It’s tough to create and watch others butcher your idea. That makes it hard to market the concept as your creation.

Lesson Learned: If you are creating ideas and projects and intend to use them as case studies and for business development, get written documentation from authoritative people concerning your creation. Ask for thank-you letters and send to others who will influence the benefits you seek to reap. Apply for awards, where appropriate. Be recognized at their board meetings and other public forums. A pat on the back or a congratulation after an event can be quickly rescinded, when they choose to forget your contributions. Get documentation in writing… acknowledging what you did, how you did it and the long-term implications for what you created.

Questions to Ask About Networking:

  • Is the person making the request a true friend, a business associate or just an acquaintance? Who are they to you, and what would you like for them to be?
  • Will there be outcomes or paybacks for the other person? Will there be outcomes or paybacks for you? If there’s a discrepancy in these answers, how do you feel about it?
  • Are there networking situations which are beneficial for all parties? If so, analyze them, so that you can align with those situations, rather than the fruitless ones?
  • What types of ‘wild goose chases’ have you pursued in your networking career? Analyze them by category, to see patterns.
  • Is the person requesting something of you willing to offer something first?
  • Are the people truly communicating when they network? Or, are hidden agendas the reason for networking? Without communicating wants, it is tough to achieve outcomes.
  • How much time away from business can you take? How does it compare with the business you can or will generate?

Concluding Thoughts on Networking:

  • Networking is a Two-Way Proposition. Associate with those who feel similarly.
  • Show and Demonstrate Respect for Each Other’s Time.
  • Be Careful Not to Pro-Bono Yourself to Death.
  • Budget Networking Time. See your time for networking and volunteering as a commodity. Budget it each year. Examine and benchmark the reasons and results.

Set boundaries, and offer your time on an ‘a la carte’ basis.


About the Author

Hank Moore has advised 5,000+ client organizations worldwide (including 100 of the Fortune 500, public sector agencies, small businesses and non-profit organizations). He has advised two U.S. Presidents and spoke at five Economic Summits. He guides companies through growth strategies, visioning, strategic planning, executive leadership development, Futurism and Big Picture issues which profoundly affect the business climate. He conducts company evaluations, creates the big ideas and anchors the enterprise to its next tier. The Business Tree™ is his trademarked approach to growing, strengthening and evolving business, while mastering change. To read Hank’s complete biography, click here.