Monthly Archives: November 2008

Donovan McNabb is no Albert Einstein… or is He?

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Leadership Lessons from Donovan McNabb

After five quarters of football on Sunday, November 16, 2008, the Philadelphia Eagles and the Cincinnati Bengals played to a 13-13 tie. This tie was the first the NFL had seen in six years – ties, it seems, are rare in the NFL.

After the game, Eagles quarterback Donovan McNabb was quoted as saying that he wasn’t aware that ties could occur in the NFL. He assumed, incorrectly, that the teams would continue to play until someone scored.

Since making these statements, McNabb has unfairly become the poster child for dumb jocks all across America. From where we stand there are only four people on Donovan’s side: Radio hosts Mike Golic, Mike Greenberg, and Colin Cowherd; and Steelers’ QB Ben Roethlisberger. Fans, especially in Philly, are loudly claiming that McNabb is either the worst quarterback in the NFL or an idiot, or both.

We argue that Donovan McNabb is neither. In fact, by not understanding this seemingly simple rule, we argue that McNabb could be one of the best leaders in the NFL today.


Leaders Don’t Sweat the Small Stuff

NFL quarterbacks are required to remember scores of plays, receiver patterns, defensive schemes, and blocking patterns. We find it easy to forgive Donovan for  being a little unclear on the nits and nats of the NFL rulebook. In our opinion, that’s the coaches’ job.

True leaders, guys like Lincoln, Reagan, Iacocca and Buffet, don’t get involved in every detail of the business. They understand that they are only one person and that the collective intelligence of their leadership team will help them make the right decisions.

McNabb is no Einstein

While probably the greatest athlete-quarterback of the last ten years, McNabb will never be confused with the study-crazy QBs of this generation: Peyton Manning and Tom Brady. He is no Albert Einstein, for sure.

Interestingly, Albert Einstein and Donovan McNabb are more similar than you might think. Analogous to McNabb’s current situation, it seems that a colleague once asked Einstein for his phone number. Albert Einstein surprised this person by picking up the nearest phone book and reciting the number from the White Pages.

Einstein, you see, refused to fill his head with information that was easily obtainable from other sources. Genius, we might exclaim. Why don’t we exclaim the same about McNabb? It seems odd to us that any quarterback would fill his head with the rules about tie games in the NFL when they happen so seldom.

They have so much more to think about.

 

Sales Management Blogwatch – November 19, 2008

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The Best of the Sales Management Blogs

A colleague asked me this week about my first commissioned sales job – he, too, started in sales and worked his way up to management. After a few minutes of friendly banter about old school sales managers and the like, we went back to our regular grind.

Reflecting back on my first sales job, I was reminded of the 2’ by 30’ banner that hung over the sales desks. It was my first day, and as I walked into the salesroom I was greeted by grumpy faces of weathered salesmen and that gigantic banner. The banner read “Nothing Happens Until Somebody Sells Something.”

I thought this saying was a little hacky back in the 1980s, and I think it’s a lot hacky today; but it did get me thinking about the current economic situation. With Citibank laying off more than 50,000, Circuit City and other retailers declaring bankruptcy, and about 2 million auto industry-related jobs in jeopardy – it begs the question: Could some of these companies have sold their way out of their problems?

I don’t have a good answer to this, but my gut tells me that great sales leadership could have made a difference. It always does.

Back to the Blogs

Are you struggling to provide great sales leadership for your team? Perhaps some of these “Best of the Best” blog posts and articles hold the key – there are some great entries this time, including some that focus on selling in the down economy. Enjoy!

Sales Management: Differentiating Your Business during This Recession
What you feel is your differentiator and what you believe you customers want and/or should want is not necessarily true – especially during a business slow down. This article will give you some insights on how to separate your company …

Monday Morning Manager-Common Sense Rule # 1
You’ve been waiting a while for this opportunity and it has finally fallen in your lap-sales management. You’ve been with Widget International for 5 years. You have grown your territory every year and you are one of the leaders in the …

What Does Your Client Touch Program Say About You?
For instance, I work obviously in the areas of sales and sales management. Most salespeople and managers know there are a great variety of training methods and theories. Controversy and going against convention isn’t an issue in this …

Maximizing Your Price–The Value/Benefit Equation …
Price increases are currently occurring at a faster rate than we’ve seen in the US economy for nearly 25 years. The driving forces behind these increases seem to be

Sales Management: Avoid Motivational Bankruptcy, 6 Tips for …
The president of an office supply company was recently lamenting that his sales people were not operating to their potential. “Motivationally bankrupt,” he said. This is a very common complaint in any area of business. …




When Should You Walk Away From a Deal?   Now! The second that question begins to form in your head you should be prepared to walk away now. That is not to say that you shouldn’t perform a thorough evaluation of options, examine how the deal can be altered or …

Doggin’ It
Not by design, but this week a number of the discussions I had with prospects/clients had to do with front-line sales managers. This is a good thing since for a long time I have been a firm believer that the biggest bang for the buck in …

Guest Article: “Managers Continue to Teach Their People How to …
Managers Continue to Teach Their People How To Avoid Full Accountability By Keith Rosen. “What is that guy doing now?” It was just an odd maneuver. Something out of the ordinary from what would have typically been an everyday experience …

Sales Management Corner: Common Sense Rule #2
Last week I mentioned that a new sales manager shouldn’t start at this position by making changes. After assuming the role, a manager should have the salespeople assessed. Too many managers want to change their salespeople without …

Sales Coaching Without a Playbook
Sales management has a significant impact on critical sales performance metrics, including turnover rates, sales cycle length, and quota attainment. Recent research by CSO insights indicates that just the ability to proactively identify …

Sales Management in a Down Economy
Our next three posts will focus on Sales Management in a Down Economy. Here’s the first of three things you absolutely must do as sales manager if you want your sales team to continue to thrive and succeed – no matter what the headlines …

Are You a Sales Professional or Semi-skilled Laborer?
We in sales work in what we like to claim is one of the highest paid professions, yet statistics indicate we are, in fact, employed in one of the lowest paying professions. In fact, we are engaged in a business that is unevenly divided …

CanDoGo is Now a Free Site–Get Great Sales Tips from more than 60 …
I have great news to share with you. I am one of the exclusive authors/speakers/trainers/coaches for a company called CanDoGo that delivers concise advice for sales, personal development, leadership and motivation over the Web. …

Avoiding the Price Question Early in the Sale
The price of your goods and services is always a primary concern to your prospects. Whether you like it or not, price is top of mind with the majority, if not all, of your prospects; and you probably find the question of price comes up …

3 Strategies to Help You Meet Revenue Goals Even in a Down Economy
Ludwig says the sales management team, with the involvement of their salespeople, must evaluate each individual’s sales funnel to determine which opportunities he or she should pursue. Come up with a short list by looking at factors …

 

The Leader’s Gift-Giving Guide – Holiday Gifts Everyone Can Use

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Holiday Gifts for the Office Crowd

‘tis the season to think about all the people who helped you get where you are today. Whether you are a senior leader or an up-and-coming manager, it’s important for you to thank those who make an impact in your work life. And by “thank,” I mean give them something of value.

It’s amazing what the phrases “thank you” and “I appreciate what you do” can mean to your administrative assistant throughout the average workday. Over the years, the AskTheManager editors have come to realize that our fathers’ were right: you can attract more flies with honey than you can with vinegar. And by “sugar,” they meant something of value.

Interestingly, I personally cringe when I receive a gift from anyone at work. I’m not sure why, but I just don’t like getting “boss” gifts from subordinates or anything from a peer. Of course, I am always very, very outwardly appreciative. Additionally, most gifts I’ve ever received from my supervisors were just pure crap (save for the travel alarm my boss gave me last year; I’ve used it at least twice a week since then). 

While I do enjoy the occasional gift from vendors and suppliers, I mostly receive thoughtless baskets of fruit and snacks that I put in the break room for the huddled masses to enjoy. This seems to kill two birds with one stone: as I can both receive and give with the same gift. (Careful, I’m not talking about re-gifting.)

What to get that Special Administrative Assistant?

The best gift a leader can give their admin is the daily affirmation that they really and truly “rock.” Telling them that they are “awesome,” that you “appreciate their commitment,” and that “you could not function without them” are the keys to keeping most assistants happy and healthy. If you do this daily, you are truly an enlightened leader and ahead of nearly all others.

Of course, come this time of year, your hyper-performing admin is expecting something really great. Disappoint them and you could be forced to live with a passive-aggressive psychopath for the next 365 days.

Here are our suggestions for great gifts for your administrative assistant:

  • Gift Cards – you can never, ever go wrong with the right gift card. If your admin is living at or below the poverty line, however, be careful to avoid the completely unusable $25 Morton’s Steakhouse gift card. Instead, opt for something in the $200 range from Target or Amazon.com.
  • Wine or Liquor – if you’re certain they can appreciate great wine or liquor, then you’re probably okay going in this direction. If not, avoid buying the 2002 Opus One for someone who enjoys Riunite on Ice (that’s nice). If you know they love wine, but they may not be a true connoisseur, perhaps you want to give them the best wine opener ever invented. In this case, WaffleMouse.com has some great reviews. To see these, follow this link.




  • Gag gifts – What are you, thirteen? The last thing your hardworking admin wants or needs is some piece of crap gag gift. They won’t “get it,” okay? Even if they do, they won’t appreciate receiving some bobbing head ostrich-thingy that appears to go on forever. Avoid, at all costs, any urge to go for the exotic or gag gift for your direct reports.
  • Crystal Vase – Household accessories, especially a crystal vase or similar display piece could be something your admin will not only treasure, but also remember – provided you give some measure of thought to the gift. For a quick view of more than 5,000 administrative assistant-appropriate vases you can buy from the comfort of your executive chair, check out the selection on Amazon.com.
  • Over the Top – Amazingly we are willing to spend thousands on a single business trip that yields nothing and just $50 a year on the person who may mean the most to our success, our administrative assistant. Why not go crazy in 2008 and drop $1,000 on a big screen HDTV or Movado Watch.

What Should You Get Your Boss?

In short, nothing. While it’s true that the right gift could earn you brownie points, the wrong gift can indelibly brand you as a sycophant. If you’re sure your boss loves “something,” then it might make sense to find the right gift. Here are some suggestions:

  • Is Your Boss a Wine Lover? – If so, a case of 2004 Silver Oak is the bomb. Don’t have $900 to drop on the guy? The Vertical Rabbit corkscrew from Metrokane might be just as well-received (and it will last longer).
  • Sports Fan? – If your boss follows a specific sports team or grew up watching a specific player, the right collectible could put you in their thoughts on a daily basis. An autographed card, ball or other memento – especially if it doesn’t appear contrived – might be just the ticket. To see a few cost-effective choices from Amazon.com, follow this link.
  • Not Sure? – You can never go wrong with a personalized holiday card to your superiors, especially if you have children. I’ve always included my bosses on my Christmas card mailing list. My holiday cards prominently feature my three (hungry-looking) children on the front. I’m careful not to put my ugly mug on the card, or to have too many amenities in the background for fear my boss might realize I’m overpaid.

What about the Office Gift Exchange?

The dreaded office gift exchange – why couldn’t I be sick that day?

There is almost nothing as painful as trying to look happy when you peel back the wrapping of an office party exchange gift only to reveal stinky potpourri or a book claiming to detail the “Best Bathroom Trivia” of all time. (I’m really okay never knowing that WD-40 stands for “water displacement, 40th attempt.”)

There are only two answers for the question “what is the proper gift to get someone for the office gift exchange:” Liquor or Gift Card.

  • Liquor – Company policy permitting, a bottle of Single Malt or Bombay Safire is the perfect gift for anyone on this list. Besides, if they hate it, they can always trade with the guy who got some crappy lavender potpourri.
  • Gift Card – Everyone, and I mean everyone, likes getting a gift card from a store or restaurant they’re likely to patronize. Not sure? Get them an Amazon.com gift card by following this link.

Customer Gifts Must Rock…

I’ve been on both the giving and receiving end of customer gifts, and I can tell you that (when the gifts are right) it’s much better to receive than to give.

However, before you send a thing to any of your customers, make sure you know a little something about them. For example, I only golf when forced by business circumstances, though I invariably receive at least three dozen monogrammed golf balls every holiday season. By mid-January I won’t be able to recall who sent balls and who sent nothing. Clearly, those who sent nothing are ahead of those who sent golf balls.

If you don’t know what makes your customer tick, you’re better off keeping any gifts you might send for yourself.

Start today to discover what makes them tick, what they love, and why they do what they do. Chances are you’ll find out that they really appreciate their kids, as I do, and that tickets to The Nutcracker for their family will go ten times further than a $500 bottle of wine. Here are a few tips:

  • Egomaniacs love anything that makes them feel important, so something expensive or something with their name on it works here.
  • Gift baskets might be okay for someone who isn’t yet a customer. If you’re trying to get your name in front of someone cheaply, a $75 gift basket should do the trick.
  • Liquor or wine – If you go this route, make sure you spend the cash. There is nothing worse than a bad bottle of wine (except, maybe, for bad shrimp). Instead of selecting the decent $20 Coppola for ten of your customers, get your best customer an Opus One and send the others a nice card.
  • Gift Card – what, are you crazy? This is tantamount to bribery. Avoid cash and cash equivalents when you consider gifts to customers.

When it comes to holiday gift giving, your mom was right: it’s the thought that counts. When you look at your list this year, be sure to put the proper thought to each gift and remember that most humans will reward those who most appreciate them. Happy Holidays.

Goldman “Leaders” Choose Poverty over Incarceration

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Goldman Leaders Forgo 2008 Bonuses

In a recent email from one of our readers, we were asked to weigh in on the Goldman Sachs Group’s leadership decision to request no bonuses for the current calendar year.

What are your thoughts on the following article?  How does this reflect leadership during these troubled times? – Tye Mills

(To read the article Tye mentions, follow this link.)

Lloyd Blankfein, CEO of Goldman Sachs, and six other top executives asked the board’s compensation committee to skip them during bonus time this year.

Pardon us if we don’t cheer.

While it is certainly admirable that these executives would take a seemingly proactive step to helping right the ship at Goldman, this decision should have come from the board (not from the executives) and should have come much sooner than November 2008. (In the nature of full disclosure, the executives likely gave up their bonuses because Attorney General Andrew Cuomo warned them last month that the bonuses might break New York State law.)

We never begrudge any executive their compensation nor any corporation their profits. This is the way our system works; and our system has worked better than any other in the history of the world. The prosperity enjoyed from Joe Six-Pack to Joe the Plumber is in large part due to the spoils enjoyed by the executives of the Fortune 500.

Take away their incentive to make money and you take away our standard of living.

Further, the seeds of destruction at corporations like Goldman and Lehman that plunged the world into economic turmoil were not planted by large bonuses. Rather, it was inattentive executives and especially their boards of directors who drove us off this cliff – while laughing and smiling all the way to the bank.




But How Will They Feed Their Families?

TheManager will not get a bonus this year, either. Not because I petitioned the board, but because my bonus is set up to pay out only when the shareholders make money. In 2008, my company’s shareholders lost quite a bit.

The removal of truly performance-based bonus pay is where most executives and boards have failed the owners of their companies; and why many of these men and women should be in jail. Leveraging your shareholders for personal gain, as Lehman has been reported to have done, by ratios of 30:1 or worse is criminal. No owner (and that’s what stockholders are) would ever agree to assume risks of this magnitude.

Before you worry about poor Lloyd and his crew, they will still receive roughly $600,000 each in base salary this year. Additionally, we can only wish that they were able to save some of their bonus from last year. (Just as the wheels of the economy were coming off in 2007, the top three executives at Goldman Sachs made more than $57 million each.)

It’s No Longer a Free Market

Companies, and especially their highly paid executives, have argued that multi-million dollar bonuses were necessary to “to attract and retain top talent.”

Top talent? By top talent, I’m hopeful you don’t mean Dick Fuld of Lehman or even Lloyd Blankfein.

Before we break our arms patting old Lloyd on the back, let’s remember that Blankfein was the CEO when Goldman posted a 70 percent drop in profits last quarter. Additionally, Blankfein was the CEO when Goldman stock plunged 69 percent this year. Doesn’t sound like bonus time to me.

In a free market, Goldman is free to pay its executives whatever they can grab. However, the market is no longer free for Goldman, Morgan Stanley and many other firms. Goldman, you see, took 10 billion of your tax dollars in the recent bailout. This makes them, in our opinion, a quasi-governmental entity. At the very least, they should be heavily regulated until we get our $10 billion back – this includes their executive compensation plans.

Back to Tye’s Question

Tye asked, “How does this reflect leadership during these troubled times?”

Tye, if this were truly a leadership move and not a classic CYA*, I would be impressed. I am not.

I would have been impressed if the leadership of Goldman Sachs had taken the long view toward building wealth for their shareholders and clients instead of focusing on their multi-million dollar paydays.

Once Goldman became a publicly traded entity in 1999 they moved the risk from themselves (the partners) to the shareholders. Without the risk, they were like drunken coeds on South Padre Island waiting for their shot on Girls Gone Wild.

Leadership is about service and sacrifice. Giving up a bonus because you’re afraid to go to jail is self preservation. Self preservation is as far from leadership as $57 million is from $600,000.

…

To read some interesting notes about the current crisis and how we really got there, check out a great article published last week by Liar’s Poker author Michael Lewis. It brings some closure to the fall of Salomon Brothers and some great insights into today’s troubles. Lewis convincingly argues that Salomon’s move from a partnership to a publicly traded corporation led to the current collapse. To read Lewis’ article, follow this link.

…

*Editor’s Note: CYA is code for “cover your ass.”

Barack Obama – Enlightened Leader?

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Leadership Lessons from the President-Elect

As someone who voted for John McCain, I have to admit that (so far) I’m impressed by one of the leadership moves proposed by President-elect Barack Obama. It looks like Obama may build his Cabinet with those who often disagree with him.

Throughout the campaign, Obama seemed like someone who would say and do anything to be President. (In this respect, he was not so unlike McCain.) Obama, it seemed, just wanted to be President so bad that he actually made me nervous.

In fact, the AskTheManager.com editors were so confused by his windblown opinions during the campaign that we ranked him third behind McCain and Sarah Palin in ability to lead. This latest move to embrace his rivals will surely vault him ahead of Palin. (To see the original rankings, follow this link.)

Though I will never agree with Obama’s socialist leanings – and I believe his proposed economic policies could potentially destroy the very things that made this country great – his apparent willingness to embrace adversaries in an effort to staff his Cabinet with the very best is impressive.

What Business Leaders Can Learn From Obama

Just elected CEO of the World, Barack Obama could take the path that many Fortune 500 leaders have taken. He could surround himself with his friends, reward his loyal and faithful followers, and staff his team with a plethora of yes-men and yes-women.

For the moment, it appears Obama will take a page directly from the greatest Republican President (and second greatest Leadership-President) of all time. Obama has hinted that he will follow Abraham Lincoln’s lead and choose the most qualified – not necessarily the most loyal – to fill his Cabinet posts. (To see our rankings of US Presidents as leaders, follow this link.)

Presidents and business leaders generally claim they want to surround themselves with strong-willed people possessing the courage to disagree with them – seldom do they follow through with this position. A great example is provided by the worst President of all time, Richard Nixon.




Though he claimed he hated yes-men, no one dared tell Nixon “no.” Because his Cabinet was filled with neutered-nothings, his merry band of sycophants stood idly by while his presidency imploded.

Secretary of State Hillary?

Obama, hinting to appointments for Hillary Clinton, Republicans, and others who have disagreed with him, might actually be serious. If he is, he will be in rare company.

Lincoln appointed political enemies to important posts, including one who went so far as to describe Lincoln as a “long-armed ape.” Tough words in 1860.

If Obama follows Lincoln’s lead and appoints those he feels are most qualified to hold significant posts, and if he encourages them to disagree with him on important issues, he may very well set an example that all CEOs should follow. (Call me naïve, but I believe Lincoln’s leadership style could have saved virtually all of the companies declaring bankruptcy this year.)

Every leader needs people around them to tell them when they have no clothes. True leaders forget their egos and reward subordinates who have dissenting viewpoints – we’re hopeful that’s why they hired them in the first place.

Time will tell if Obama has skin thick enough to want the truth from his Cabinet, though I like what I see so far.

In Leadership, Obama Bats .500

It couldn’t all be good news, could it?

While I’m certainly impressed by what everyone thinks Obama may do with his Cabinet, I’m somewhat less impressed by the leadership lesson he provides in abandoning his Senate seat tomorrow.

If challenged, Obama’s people would surely claim that the President-elect needs to prepare for his first term, and that the Senate will be fine without him.

Really?

Doesn’t the lame duck Congress need to tackle the greatest economic crisis the US has seen in more than 70 years? Isn’t this the precise reason the people of Illinois elected him to serve? At a time when the country is devoid of leadership, Barack Obama provides a terrible lesson to the nation’s leaders: when the going gets tough, some people quit.

Winners Never Quit and…

While it’s true that Senator Barack Obama will be replaced in the US Senate, his replacement most likely won’t take office until after Christmas; and he/she most certainly won’t take office next week when the Senate meets to discuss the economic bailouts.

Is it possible Obama doesn’t really want to bail out the auto industry and he’s afraid of angering his union base? Who knows – all I know is that he is quitting early and leaving the decision on who will be the next US Senator from Illinois in the hands of a scandal-ridden Governor with a 13% approval rating.

Lest you argue that Governor Blagojevich would appoint the next Illinois Senator no matter what; wouldn’t it make more sense for Obama to wait until January 19, help the country through the current crisis, and hope the Governor resigns or is impeached between now and then? (I can dream.)

No matter how you slice it, quitting early does not sound like leadership to me. Let’s hope Obama has a really good reason for walking away in the middle of this crisis.

 

Management Training Blogwatch – November 13, 2008

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Management Training Blogs – The Best of the Best

As is a semi-regular custom here, the editors of AskTheManager.com scoured the billions of pages of the World Wide Web to bring you the best Management Training-related blog posts and articles for past few weeks.

The pickings are slim here, folks. This means we either do a lousy job of searching or there just isn’t that much written about Management Training anymore. (Probably a little of both…)




Management Training
Often it is only when you attend a business coaching programme that you realise that you have many of the managerial skills required to be successful leader. It is also the forum where you can assess those skills where you don’t feel …

Gaming During Management Training
I had to attend some kind of leadership/management training workshop for work a few weeks ago headed by one of those external consulting firms. It was surprisingly interesting and focused on communication, confrontation, resolution and …

SOUND-OFF: Paying DC Middle-Schoolers for Good Grades
It is wonderful that accounts are being created at SunTrust Bank for the students in the program, and it is even better that the bank is providing free money-management training, but at the end of the day, these middle school students …

PEST Analysis Overview
Those who have undertaken a management training course will have been educated with a variety of tools and techniques they can use to improve the flexibility of their organization. One such analytical tool is referred to as The PEST …

Send Tucson School Admin Staff to Disney Training?
She’s sending her “executive team” to management training with Walt Disney. No Mickey Mouse jokes here. I’m sure Disney is a well managed business, and their training sessions probably help other corporate leaders learn about bonding …

Management Training – The Dirty Little Secrets
I am often asked if training really works. The answer is yes and no! Here’s why. Sometimes, unless a training is made mandatory, those who need it the most will choose not to attend! 75% of the learning goes on after the employee comes …

‘Tis the Season for Management Training
We meet in a banquet room on the second floor. Two walls of windows give us a great view of the golf course. When I started going in January, it was no big deal. There’s nothing bleaker than a large empty expanse of field covered in …

Professionalizing Management?
So, their argument about closure rests on the assumption that management training yields a higher level of leadership, skill, etc. that would allow professional managers to command a premium relative to non-professional managers. …

Real Change
The above speech is from 2002, but it seems to me that it is fitting on the eve of our election here in America. I have no idea where Bill Strickland stands on the issues or the candidates. But his approach shows how change can be …

Planning For Empowerment
In a previous article we considered the rationale and benefits of empowering staff. However, it’s important to recognize that successful empowerment, requires careful preparation and planning, it not simply a case of giving someone a …

Exposed and Transperent
“Never trust a leader who hasn’t suffered.” -John Eldredge. I’ve heard it many times before that who we really are is revealed in crisis. I didn’t fully own that reality until I tasted my own crises. Taste is a humbling thing. …

 

Leadership Lessons From Circuit City – Ho Hum, Another Bankrupt Retailer

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Circuit City – Another One Bites the Dust

In what might be the least surprising business announcement of 2008, Circuit City filed for Chapter 11 bankruptcy protection on Monday.

Wow, really? Color us shocked.

To be honest, we’re a little shocked it took this long. We’re also a little surprised that their creditors aren’t forcing them into Chapter 7 liquidation – though that may come sooner rather than later. (Lest we forget, fellow specialty retailer Linens ‘N Things initially filed under Chapter 11 and is now in Chapter 7.)

Like Linens ‘N Things, Circuit City cannot blame their bankruptcy on the credit crisis, housing downturn or the growth of online retailing. No. Circuit City can only blame themselves. Specifically, they can only blame their leadership.

Leadership is More Than Directing Traffic

The Circuit City executives deserve to join Lehman’s Richard Fuld in the business Hall of Shame. Like Fuld, Circuit City leaders made misstep after misstep that effectively condemned their company. However, unlike Fuld, Circuit City’s leadership failed to take enough risks; deciding instead to ride out a doomed strategy for the past several years while their competition ate away at their market share.

What is Circuit City? At what do they excel? What is their niche? Can you identify one thing they do better than anyone else? The short answer: No. Circuit City is a vacuum; they are the epitome of nothingness; they lack an identity.

You must be the Best “Something”

Who’s the best online bookseller? Which hotel company provides the best customer service? Which rental car company is the undisputed king? Where can you go to get the best sushi in Las Vegas? (It’s important to note that 3 of these 4 command a premium for their products.)




The answers to these questions are not relevant to this discussion, though being the best and/or carving out a niche is critical in business – good economy or bad. Circuit City had no such niche. They were not the best at anything. They were known for nothing.

Of chains offering electronics, Wal-Mart is the low cost provider and Best Buy provides the largest selection and the most knowledgeable salespeople. Circuit City has long been known for poor service, poor selection and product shortages of loss leaders. This is not the niche you want to carve out for yourself. (Did Circuit City executives ever understand their goal?)

Circuit City chose to compete with Wal-Mart and Best Buy by duplicating pieces of these companies’ strategies – something they could never hope to do well – and they never bothered to create a unique business model that would provide something of value to consumers and provide them their piece of the pie.

While there is certainly room for additional bricks and mortar electronics retailers, Circuit City executives never understood what it took to be the best at something… anything.

That’s Not Fair – They Never Saw This Coming

If your argument is that the credit crisis is really what took Circuit City down you’re sadly mistaken. Perhaps you’re unaware that Circuit City executives burned through more than half a billion dollars in the last four years.

What about creating an aggressive online strategy? Doesn’t it seem like $500+ million would have been enough to develop a competitive online business model? With that kind of cash in 2004, true leaders would have developed a sustainable business. Instead, Circuit City chose to watch the cash reserves decline quarter-after-quarter until they were forced in bankruptcy. Were they negligent, incompetent or just suffering from analysis paralysis?

The End is Near

Don’t be fooled by their reorganization plans, Circuit City is down for the count and not getting up. Lousy leadership is lousy leadership, and court protections will change nothing.

While Chapter 11 might provide a short-term reprieve and allow them to stock their stores for Black Friday 2008, they’ll not be around for Black Friday 2009. (Heck, they probably won’t make it to Good Friday.)

….

(Just in case you were wondering, the answers to our questions about who are the best ___________ are Amazon, Ritz Carlton, Hertz and Nobu.)

 

Time Management Blogwatch – November 9, 2008

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The Best of the Time Management Blogs

Although we already identified the number one time management of all time tool earlier this week (to see this post, follow this link), we felt compelled to scan the blogosphere and deliver to you the best of the Time Management Blogs from the past few weeks.




Time Management Optimization
Simply put, timeboxing is time management, yet without the need for complicated studies to see how you can best allocate your time. It works by completing any work that you have to the best of your abilities in the agreed timescale …

Rudeness or Poor Time Management Skills
please-don-t-interrupt-me-while-im-ignoring- It’s happened to all of us… we are in what we think is a useful conversation, when the person we are talking with, suddenly switches over to their Blackberry, or cell phone. …

Time as Effective Key to Managing Stress
Many studies show that one of the best ways to manage stress is through effective time management. Why It is because lack of time usually pressures people. When people are being pressured, stress surfaces, which hinders them from …

There is enough time for all important matters
When talking about time management I hear many people claim that they do not have enough time. At first you have to realize that you have enough time for all important matters – if you want. Think on how much time you might loose per …

Cut Through the Myths Surrounding Time Management
As I see it, the current difficulty is that we all face too much information, and that today many myths still abound as to what constitutes effective time management. Time management is subjective, varying from one situation to another. …

Master Time Management Skills in 4 Easy Ways
Time management is all about mapping out a plan or schedule to follow throughout the day so that you do not cram in the end. You have to allot time for each of your tasks, making allowances for unforeseeable circumstances. …

Technologies that Improve Time Management
Apple’s very popular music player, though not specifically designed as a productivity tool, allows you to improve time management by downloading text-based to-do lists in it. A text file is a simple electronic notepad, where you can …

Effective Time Management: Strategies, Tips Techniques
One of the things that sets the more successful people from the rest is management of their time. In today’s world there are always too many things to attend to – job, family, civic work, professional organizations, social obligations …

Time Management and Prioritization
Time Management and Prioritization go hand in hand. It is very difficult to think of one without the other. Let’s think about them separately for a moment and then see where they really fit together.

Is it REALLY time management we’re after? Pt. 2
In my last post I talked about reconsidering the term time management and focusing instead on energy management and reminded readers that the first way to address this is through taking care of personal health through exercise, …

Execution… I Mean The Book
Setting clear goals and priorities is at the pinnacle of practicing effective time management. Without written, specific, measurable and realistic goals it is difficult to move forward. And it leaves you vulnerable to distractions by …

Start with the most important things
Start with the most important things. Assuming that the Pareto Principle can be applied, 20% of your actions probably account for 80% of your results. This is why it is so important to first prioritize by the importance of your tasks …

Effective Time Management Skills – Can We Really Manage Our Time?
Contrary to many beliefs, time management is NOT about managing your time but rather effective use of time. No one can manage time; we all have 86400 seconds per day; we can’t manage to get more or less. Effective time management skills …

Which of These Time Management Skills are You Missing?
For many people, time management is difficult as a concept; however, if you take the time to learn some time management skills you can manage your time well so that you get everything done you need to. Here are three time management …

Extremely unlikely productivity techniques
We talked Monday about how time management is kind of a waste of time and that it’s really all about examining your relationship to time and then finding ways to make that relationship work better. Hmmm. Working on a relationship sounds …

Can You Stretch Time To Get More Done?
The number one thing, after your ability to perform at your profession, is to become an expert in time management. Time management is perhaps most essential for the person who owns his or her own business. As you become more focused on …

Stress Anxiety Procrastination Tips: A Time Management Problem
Procrastination is a time management problem. If you find yourself putting things off, or forgetting about projects or chores, start scheduling your day. You don’t have to schedule everything for a specific time. …

Time Management – Can You Achieve Work/Life Balance?
I sat in a convention a couple of years ago and watched a gray haired man with thin rimmed glasses, a bright yellow Hawaiian shirt with red flowers and a bright green blazer nearing his eighties jump in front of the room and claim that …

Top 10 Time Management Tips for Busy Entrepreneurs
Here are my top time management tips: Find out what you’re doing with your time. One of the first things to do is to actually find out what you are doing with your time. Try monitoring your time for a week and see what’s going on. …

The Best Time Management Tool Ever
Time Management’s Greatest Tool Ever The Internet (especially the blogosphere) is filled with advice extolling every flavor of tip and trick designed to help you manage your time better. New managers are especially vulnerable to the …