Great Performance Comes From.......
Used with permission.
Thanks to Skip Carruth, VP, McLane Advanced Technologies - from the email of his notes from a presentation by Geoff Colvin, Editor-at-Large for Fortune Magazine at the Central Texas Economic Conference.
Geoff told this story to highlight what he thinks will be critical for businesses during this recessionary period:
In the 2004 Tour de France, Lance Armstrong was attempting the impossible – a 6th win of this most prestigious event. Through the first 4 stages, the winners of each stage changed hands but for the next 10 stages, Frenchman Thomas Voeckler never lost first place and led the field by 22 seconds. The next 3 stages were the most brutal and demanding of the tour - the Alps stages. Battling through a series of three seeming impossible ascents, Lance sprinted ahead on the first mountain stage and already led the field by 1:25. On the last day of the mountain stage, Lance was caught off guard by the sprint of a German rider, Kloden with only a half mile to go. Lance knew his teammate did not have the stamina to threaten the leader. The German rider led by 110 yards with only 600 yards to go. In what is arguably the most exciting finish of any stage in Tour history, Lance gave it all he had, passing and ultimately beating the German by a few inches. By the last stage of the mountains, Lance had extended his lead to 4:09. Never again was anyone a serious threat to beat Lance who went on to win this Tour as well as a 7th title.
Geoff’s point was this – we are in the mountain stages of our business life. The recession is looming and the battle will be difficult. But those that rise to the challenge and work hard during this most difficult time will be so far ahead that, when we come out, no one will catch up.
With that in mind, Geoff gave us 5 things that leaders do in difficult times:
1. Focus on the most critical things and reset the targets. If there’s a freight train bearing down on you (like the recession), don’t pull out the strategic plan. Put all the stuff aside, roll up your sleeves and tackle the challenges head on.
2. Focus on the core – for example:
a. Dow Chemical during the depression believed that chemical research was its core and it invested in that research. Coming out of that, among other things, were NYLON and NEOPRENE.
b. Coca-Cola knows that its BRAND is its most valuable asset. When economic conditions are difficult, they INCREASE advertising and marketing funds.
3. Protect your most valuable assets – people, relationships and culture. The first 3 budget items cut in a downturn are travel and entertainment, advertising, and training and development. The leaders train, develop their workforce and out-brand their competitors. These times are the best times to evaluate your people – “You don’t know who is swimming naked until the tide goes out.” Get rid of those folks that EVERYONE ELSE knows are deadwood and develop and even hire the underappreciated best from elsewhere. What you do with your people will be remembered for a long, long time.
4. The best leaders communicate like crazy – far more than when things are going well. Your people are nervous and anxious. Be honest, be realistic and be encouraging! Don’t “hunker in the bunker” but get out and share optimism and enthusiasm.
5. The best companies realize that we need to increase the value of what we’re offering. Redefine the value and develop new solutions for the new economy. For example:
Verizon saw a dramatic increase in households that were cancelling their landlines at home. They weren’t going to let go of their cell phones so, drop the home phone. The copper leading to these homes was paid for 50 years ago – that revenue is very profitable. Verizon changed their message and encouraged people to keep their home phones – pay only $5/mo ($5 is greater than $0!!!) but they can only call Verizon (of course) and 911 in an emergency and the home phone will still work when power to the home goes out. They salvaged what would have been a significant loss by changing the value equation.
Geoff’s final message – “Great performance comes from deliberate long-term practice and skills developed over the long-haul.”
Skip Carruth
Vice President – Commercial
McLane Advanced Technologies
Office: 254.791.8300
eMail: skip.carruth@mclaneat.com
Web: http://smb.mclaneat.com/ http://www.mclaneat.com/
No comments:
Post a Comment