The Gutsball Blog

Friday
14
Sep

0 Comment(s)

Leadership

‘Tis the Season

‘Tis the Season

It’s that time of year again. Yes, I know the kids are back in school and soon the leaves will begin to change color.  The esoterics are something I’ll deal with another time perhaps, but today I want to discuss that time honored corporate rite, the creation of the business plan for next year.  Many companies are somewhere along the completion spectrum right about now.


Let’s start with the premise, whether you are a middle manager or a CEO, that everyone has a boss; meaning that somewhere along the road your business plan submission will be reviewed by someone who will think you’ve presented a compelling case based on a cogent thought process.  Or, and this happens all too frequently, that someone will think you are all wet and send you back to the drawing board.


If you are the CEO of a publicly held company, you and your investor relations team have spent lots of time during the year in a push / pull dance with sell side analysts on Wall Street.  Half of the effort is devoted to convincing them that your strategy is sound and growth prospects bright, while at the same time trying to finesse a dumbed down earnings projection so that The Street doesn’t set the bar so high that it can’t be jumped over.  Eventually, a consensus earnings and revenue forecast is achieved.  It’s at that point that the CEO turns to his or her planning team and says something like, “go forth into the organization and bring me back some numbers that are X% higher than The Street’s consensus.  We need wiggle room.”

Keep reading »

Tuesday
21
Aug

0 Comment(s)

Leadership

Why Customer Satisfaction is Important…Really

Why Customer Satisfaction is Important…Really

At HP Financial Services, we go to great lengths to measure customer satisfaction.  In our parlance, it’s known as Total Customer Experience or TCE.  Many companies do, so, it must be important, right?  It is, but how you turn that information into enhanced customer loyalty and competitive advantage is the real key.


It may sound too simplistic to ask the question, “Why is customer satisfaction important?”  But the answers are perhaps less obvious than you think.  Sure, you’ve got the typical indicators such as competitive comparison which is correlated to something we used to call Customer Loyalty which has traditionally been closely linked to market share statistics.  And, market share results have been known to drive all kinds of go-to-market decisions including, importantly, marketing expense – usually a big number in many companies.

Keep reading »

Wednesday
1
Aug

0 Comment(s)

Leadership

The Imperative of Operating Principles

The Imperative of Operating Principles

When the winds of change blow, what do you hang onto?  When uncertainties abound, what’s your anchor?  When complexity is heaped upon complication, do you have a baseline?  When catastrophe strikes, and it always does, can you be counted upon to do the right thing, first time and every time?


These, and similar, questions are put to business leaders almost daily.  How they are addressed is easily as important as the “what” that gets decided upon and implemented.  Regardless of the issue or circumstance, successful navigation of troubled waters begins with unwavering adherence to a set of clearly articulated operating principles.  And, no, I am not referring to a set of platitudes that become miniaturized, laminated in plastic and carried around in a shirt pocket or purse.  Rather, I am talking about “this is what we do and how we do it” and being consistent about it over a period of time so that your people develop confidence in your leadership because they know what to expect from you no matter what.
 

Keep reading »

Wednesday
25
Jul

0 Comment(s)

Current Events

What does the future hold for the economy in China

What does the future hold for the economy in China

What does the future hold for the economy in China?  While growth there continues to surpass by a significant margin, the stagnant, if not troubled, western economies, I sense “a disturbance in the force”.  Moreover, I would advise caution with respect to reported growth rates, not a lot of transparency there, when considering first or further investment.

To begin with, the business environment can be challenging for foreign companies.  Regulatory and licensing requirements are difficult to navigate and time consuming.  Local corruption has been well documented and seems to be accepted pretty matter-of-factly by the federal government.  In a quest for more revenue, perhaps brought on by a slowing economy, tax laws seem to change somewhat quickly with emphasis on stricter standards;  so, taxes are more burdensome, the rules more arcane.   Not what you’d expect from a flourishing economy, especially as is typical nearly everywhere else, one seeking foreign investment to stimulate growth.  Lastly, the competition for qualified people is pretty stiff, expect to pay up.

Keep reading »

Thursday
19
Jul

0 Comment(s)

Current Events

On Global Accounting Standards

On Global Accounting Standards

So, the Securities Exchange Commission (SEC) here in the U.S. has decided they may not be so crazy about the idea of one global accounting standard, according to the New York Times over the weekend.  Huh? Now you come out with this?  After how many years of international squabbling and causing every business person I know to wring their hands, if not freeze in place, at the thought of yet again more reporting requirements and government oversight.

I’m all for more transparency, and if the Enron / WorldCom scandals have taught us anything, surely the lesson is that the cheaters get caught eventually.  And I know there will be a hue and cry for more regulation in light of the latest saga of corporate misdeed and greed with respect to the Libor rates uproar.  But you can’t regulate everything, you’ve got to pick your spots and apply at appropriate levels, e.g. why do small businesses in the U.S. have reporting requirements similar to these of companies in the Fortune 500 under Sarbanes Oxley, better known at SOX?

Keep reading »