Leader's Compass 31 - Running Lean - How Managers Can Creatively Cut The Fat WithoutCompromising Quality

All too often we think more is better. Recently I've read about how some retailers are finding thier revenues down and are needing to "trim the fat" through better expense management. Although most companies and many people personally have had to cut back on spending when times are tough tightening the belt a bit can be a helpful reminder of what is important. Below are a few helpful tips.

1. Always invest in training and development. It's been said that a great leader knows more about his assets than his liabilities. This does not mean that the leader is a fool that ignores expenses, but that they look for, see and understand the depth of the assets in his possession. Spending time with and training the team you work with can have a massive effect on your overall cost savings. 

Better trained, more developed people are able to easily do more without becoming burned out and overwhelmed. 

2. Maximize individual strengths. A solid manager will take pause and look from both a long term strategic and short term tactical perspective what strengths in her individuals are best utilized where. People that are maximizing strengths in thier day to day are happier, more productive and more effective as well. Putting the right person, with the right talent and skill in the right job is the first step toward success.

3. Don't forget the fine toothed comb. Doing a thourough search for company fat - programs that are not producing, projects that are unproductive will always be found through a detailed approach to the financial statements.

4. Commit to killing sacred cows when necessary. Every company has no shortage of sacred cows. Perhaps it's the idea that the CEO loves and everyone has followed despite its eventual ineffectiveness. Maybe it's the cultural shift made by the entire corporation in an effort to improve an area but instead created more redundancy in the business. 

When cutting costs effectively it's important to go into the process with the commitment to kill any sacred cow that is no longer serving the company needs.

5. Finally - never sacrifice the customer experience. Experience is what keeps us coming back to a retailer, a restaurant, hotel, health club, or any other service business. Sure, competitive pricing is great, but if history has taught us anything about business the experience consumers have is paramount to the company's long term success.

See from the customer point of view and never forget that intelligent consumers can see when you are trying to save a buck at thier expense. Don't fool yourself into thinking you are fooling them if one of your cost cutting measures puts customers needs on the back burner.

In the end lean times can create better efficiency and effectivity if done properly. Cost cutting is a sharp sword that if done too aggressively and without the velvet hammer approach can alienate employees and customers alike. Done well however it can be a great lesson in leadership, team building and loyalty creation. Plan well and lead on.

Leader's Compass 30 - One of These Things is Not Like The Other

"Life is hard, and so am I"

- Mark Everett, The Eels

In school I got sent to the principal's office for not conforming to the standard regularly. Times have changed but I haven't. Ultimately, at the heart of it I'm what you would call a contrarian. I do things contrary to what is popular. I'm not particularly interested in the most popular way of doing something because I've never gotten much satisfaction from being a lemming.

When I was younger being a contrarian, someone who marched to the beat of a different drummer didn't seem so cool. I struggled with the fact that my inner voice would not only be able to cut through the bullshit of what "authority" figures said, but that I couldn't just go with the conventional flow. Call it my artistic expression, my strong willed stubbornness or my analytical passion. Whatever it is I was born hard wired to not conform. 

Over time I came to observe that leaders were those that, like me were a bit off the beaten path. They didn't listen to the masses. In my home office I have a quote from the great Henry Ford that says "If I would have asked them (the public) what they wanted they would have told me [they wanted] a faster horse." Instead of listening to the masses Ford created the automobile and revolutionized our world transportation.

Managers and leaders are cut from different cloth. A great leader can also be a great manager. A good manager however has a difficult time becoming a great leader. Managers listen to the status quo, develop systems to maintain that status quo and follow the mantra "create efficiency and don't rock the boat." Leaders rock the boat...regularly. Leaders are rarely "appropriate." 

When asked about his general who "drank too much and cursed too much" Abraham Lincoln, a great leader in his own right responded that that general was getting results and that he wished he had several more "drunk generals." That "drunk general" by the way ended up winning the war for Lincoln and the country.

Being a leader means you are driven by passion and a love for the people you lead. Sometimes, those people, because of their own weakness look to you as the "fault." Their personal self esteem issuers cause them to betray themselves and ultimately you. Does that mean the leader is in the wrong? Not necessarily. The great contrarian Winston Churchill said that if you are have no enimies then you have never taken a stand or made a bold action.

Being a contrarian is risky, and all risks come with upsides and downsides. Great leaders weigh the risks and act anyway knowing that at the end of the day they (unlike their manager counterparts believe) cannot control every outcome.

Contrarians are leaders. They are those that stop, observe, act out of what they belive is right and not out of what "the rules" say. A great contrarian, therefore must become a great appoligizer. Contrarian leaders don't mean to offend and are often misunderstood because they do not follow the status quo. Apologies for misunderstandings and unintend offenses are had regularly.

Ultimately we all have at least a small contrarian inside of us. Some have a stronger voice than others, perhaps because they have learned to listen to it more often over the years. Regardless, feed that contrarian. Be the guy, be the girl that is, as Sesame Street taught us "is not like the other" 

Live well. Lead on.