Get your strategy right now before the dust settles

July 21st, 2009 1:04am

We need to talk about strategy.

Now there’s a sentence guaranteed to crush the spirit of any senior management team. But business leaders ought to recognise, as they catch their breath after months of turbulence, that the strategy they were pursuing until recently is unlikely to be right for today.

It’s not just that markets have changed. Your organisation has changed. You may have all been through a near-death experience. Even if you avoided calamity, it is unlikely that colleagues are the same carefree people you remember from a year or two ago. Most businesses have been making serious cutbacks. Co-workers may be doing their best to look calm and positive. But they can see unemployment rising and know that sustained recovery is a long way off.

So, before even attempting to work out a strategy for changed times, leaders first need to acknowledge that their people feel differently about the jobs they are doing. This is not the same thing as bland reassurance, however. Virginia Merritt, managing partner of the London-based consultancy Stanton Marris, said last week: “One company chairman asked me: ‘How can I convince them that things will get back to the way they were before?’ I had to tell him that this was not the right way to come at the problem.”

The remainder of the article can be read here. Please post comments below.

World exclusive interview with Google!

July 8th, 2009 2:32pm

Ok, so we don’t actually have any sort of world exclusive with anyone from Google (although today’s news that Google is releasing an operating system is, in management terms, a huge story and it would be a great time to have an interview with the company) but I borrowed the headline from the cover of the August edition of Wired UK magazine. I added the exclamation mark at the end to show just how much better our “world exclusive” is.

It’s an odd claim given that Google’s CEO Eric Schmidt has been interviewed a few times on FT.com, and that there doesn’t seem to be anything especially new in this piece. But any interview with the people (Wired also spoke to Sergey Brin) who are at the forefront of a technology revolution at one of the world’s most interesting companies is worth reading.

Continue reading "World exclusive interview with Google!"

A Free exchange of ideas

July 2nd, 2009 2:41pm

John Gapper reviewed Free: The future of a radical price, the latest book by Chris Anderson, editor-in-chief of Wired (US edition) in today’s paper.

And over on John’s blog, we have been engaging in our first ‘interactive review’ - opening up our pages to the author to respond and exchange ideas with the critic.

The discussion threw up some interesting ideas and, being the FT, they were discussed in a suitably civilised way.

I’m sure a lot of readers have thoughts on this so feel free to pitch in with your comments (registration is required but this isn’t too onerous).

Niche marketing takes it to another level

July 2nd, 2009 7:00am

Our story in today’s paper that Mars has launched Fling, a chocolate bar targeted at women (”Naughty, but not that naughty”) is part of that contant trend among consumer goods companies to change what they produce and how they market it. Consumers are changing and the company’s selling them products are trying to keep pace with how things are evolving.

One reason, of course, is the global downturn. And to get a sense of how significant an impact it is having, you should take a look at Procter & Gamble, maker of Pampers nappies and Gillette razors. The company has decided to start making cheaper products.

Jenny Wiggins, our consumer industries correspondent, explains: Continue reading "Niche marketing takes it to another level"

Survive company mergers

June 30th, 2009 1:25am

Many promises are made at the altar during a merger or an acquisition. Most of them get broken. It is worth reminding yourself of this now, before the next wave of whirlwind corporate romances arrives.

So far this year there has been only mixed evidence of renewed appetite for M&A. Sure, the proposed £40bn ($66bn, €47bn) merger between the mining companies Xstrata and Anglo American caught the eye, just as Oracle’s $7.4bn deal to buy Sun Microsystems and GlaxoSmithKline’s $3.6bn move for Stiefel Laboratories did.

The past three months have been relatively quiet, however, as businesses wait to see how robust any potential economic recovery really is, and whether finance will be available. Getting valuations right at a time like this is in any case extremely difficult.

The remainder of the article can be read here. Please post comments below.

The undercover boss

June 9th, 2009 1:34am

Employee attitude surveys, brown bag lunches, focus groups, informal chats: managers try quite hard to find out what their staff are thinking. But the results are mixed at best. What are your staff thinking? Admit it – you don’t really know.

Is there any way of finding out? Electronic surveillance would be a bad idea. Cloaks of invisibility work for Harry Potter, but are not available to the rest of us. One chief executive has done the next best thing. He went undercover in his own business for two weeks, disguised as an office worker, completing shifts on 10 different sites. He has heard for himself what his people really think. It has been a revelatory experience.

Stephen Martin is the 43-year-old CEO of the Clugston Group, a medium-sized civil engineering and logistics company based in the north of England. But for two weeks earlier this year, as far as his colleagues were concerned he was “Martin Walker”, an ordinary co-worker trying to earn a living like everybody else.

The remainder of the article can be read here. Please post comments below.

How to manage the clever squad

May 26th, 2009 1:48am

Something else to worry about. When business is bad, your best people get twitchy. They struggle. They start looking round for something better to do. “Clever, creative people want to go to work and have fun,” says Gareth Jones, a fellow of the centre for management development at London Business School (LBS). “They don’t like gloomy workplaces.”

We have heard enough for one lifetime about the “war for talent”. But this doesn’t mean that leaders can ignore who is on their team. Last week I went to a seminar hosted by the Corporate Research Forum which, thankfully, injected new life into that increasingly tired debate over talent, knowledge workers and the rest of it. It is time to reframe this debate. What we should be thinking about, you see, are clever people.

Clever is a slippery word. It is never a good idea to be thought “too clever by half”. Many people are told at some stage in their lives that “you are not as clever as you think you are”.

The remainder of the article can be read here. Please post comments below.

Soar above the skyful of lies

May 12th, 2009 1:26am

The great financial crisis intensified at ultra-high speed thanks to super-fast broadband connections and increased computer processing power. Time to switch the machines off? No. But it is surely time to manage the flow of information better.

This will not be easy. Research led by the husband-and-wife-team Professors Andrew and Nada Kakabadse (he is based at the Cranfield school of management, she is at the Northampton business school) has revealed the depths of managers’ addiction to new communication technology. Around a quarter of the 1,200 professionals surveyed spend three or more hours a day on their e-mails and sending text messages. More than half the younger and middle-aged respondents never turn their phones off at all.

Three quarters of younger workers admit to being addicted to technology. Alcohol, tobacco, shopping: none of these temptations matches the appeal of fancy new gadgets and high-tech kit. The only good news is that, while confessing to their addiction, the majority of respondents deny that their use of technology is out of control.

The remainder of the article can be read here. Please post comments below.

Lasting appeal of interims

April 28th, 2009 1:28am

“Blue is the colour, football is the game,” as Chelsea fans like to sing. Tonight their team is playing Barcelona in the semi-final of Europe’s Champions League in the Catalan city’s Camp Nou stadium. But here’s the thing. The guys from London are being coached by an interim manager.

Guus Hiddink, Chelsea’s temporary boss, was brought in by Roman Abramovich, the club’s Russian owner, in February, after the sudden dismissal of his predecessor. Mr Hiddink, who was already manager of the Russian national team, agreed to look after the Chelsea side until the end of the season in May.

Once he was installed, the team’s flagging performances soon picked up. Talented players, who had seemed flat and uninspired under the former manager, began to look like superstars again. After a brilliant victory away at Liverpool this month one sports reporter declared: “The Hiddink effect is looking like something close to alchemy.”

The remainder of the article can be read here. Please post comments below.

Four reasons to be cheerful

April 14th, 2009 1:30am

Spring is a season for hope and renewal. All that stands between us and an end to gloom and doom are…the facts. But perhaps it is time to give optimism a try. Perhaps all the negativity is being overdone. Clearly, it can be self-fulfilling. Leaders should not be moping about, feeling sorry for themselves and spreading misery.

According to Peter Shaw, a partner at the coaching consultancy Praesta, when one chief executive asked his chairman what was the most important thing he should be doing at a time like this, his answer was: “Smile”.

Wishful thinking is no use. It is irresponsible. But there may be grounds for more positive thinking. Here are four reasons for managers to be cheerful.

The remainder of the article can be read here. Please post comments below.