Directing from the bunker……

SHIT-HOTEL

Have you seen “Undercover Bosses” on Channel 4 ? (9pm Thursdays)

In the series a number of company Executives go “undercover” to see how their business really works.
Last week it was David Clarke’s turn. David is the C.E.O of Hotel chain “Best Western” which doesn’t actually own any hotels but acts as an “umbrella brand” and booking agent.

David explained to his rather bemused board that he was going undercover for 5 days and would report his findings on his return.

David grew a beard and assumed an alternate identity.

He needn’t have bothered really because, despite a 1 million pounds marketing campaign, none of the staff had any clue what Best Western did or who they were.

David met a number of staff most of whom were extremely dedicated despite having to work extra hours unpaid and generally receiving just above minimum wage.

The funniest was the maintenance guy who clearly didn’t give a sh*t !

“Aren’t we going to fix that properly” asked David. “Nahh we’ll just move it to another room” – so that when the Best Western Inspector returned and checked the same room the offending item would be elsewhere and replaced by one from another room. Other shenanigans involved changing the room numbers on the Inspector’s report to confuse him on his return.

David, quite understandably, was not amused.

David returned to the boardroom to announce his findings – The Marketing Director was visibly shocked to hear that the advertising campaign had been particularly ineffective.

At the end of the show David anounced (in Secret Millionaire style) his true identify to the staff he had met during the show.

One Lady had worked for Best Western for 20 years. She earned around 6 pound per hour as a Cleaning Team Leader and regularly worked well over her standard shift for no extra recompense.  During the show it transpired that her Son had spent some considerable time in Great Ormond Street Childrens hospital. Consequently David, in best philanthropist style, got out his chequebook. The Cleaner’s lip trembled and a loose tear rolled down her face as he wrote out a cheque for…….two and  a half thousand pounds.

Best Western is part of the Interchange & Consort Hotels Group Ltd which is a private limited company and as such its accounts are not readily available in the public sphere in the same way that a PLC’s are.  It is however one of the largest hotel chains in the Western world. One would have thought that a more generous donation would have been in order from such a “prestigious” organization rather than this rather tawdry sum.

The program highlighted a number of issues prevalent in many companies today:-

  • A boardroom in the bunker mentality – completely out of touch with it’s own workforce and the issues it faces on a daily basis.
  • A CEO living in a “bubble of bullshit” provided by his fellow Directors.
  • Workers being exploited on minimum wage and working excessive hours.
  • Workers with such dedication compared to their highly numerated counterparts in the boardroom it makes you seeth.

There is an old Management technique called “Management by walking around” which is exactly what it says on the tin.

Executives need to extract their heads from their own orifices and get out there on the shop floor and find out what the hell’s going on in their own organizations. Get out there and talk but more importantly listen to your own workers.

chris@projectsguru.co.uk

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North South divide……..

In the 1980’s Britain was a divided nation in more ways than one.The industrial strife of the miners strike and the subsequent pit closures took a terrible toll on the Economy of the North with high unemployment and social deprivation rife in cities like Newcastle, Liverpool, Manchester & Sheffield. No one captured this division better than the comedian Harry Enfield with his cockney character “Loadsamoney” and his Newcastle counterpart “buggerallmoney”.

Whilst these caricatures caused hilarity both North and South they represented real, deep cultural divisions.

Of course the South has always had it’s own problems of density of population, high housing costs, congested roads, increased pollution and pockets of real deprivation alongside unbridled wealth.

In the 1990’s onward there has been tremendous progress in the North. Cities like Newcastle, Manchester & Leeds are unrecognisable compared to 20 years ago. Rather than squander money City councils like Salford have done a tremendous job in bringing new investment to previously deprived areas and building new, modern infrastructure which is the envy of the world.

The massive cuts announced by the coalition Government risk undoing all of that and there is a real danger that their impact will be felt far more sharply in the North where there is a much greater dependency on Government and Civil Service jobs.

This must not be allowed to happen. There must be Government incentives for New Businesses to set up in the North. In these days of electronic communications there is absolutely NO good reason for New Start ups to be located in the South East. Newcastle, Leeds, Manchester & Liverpool all have excellent airports and rail and road infrastructure. There are skilled and educated workers available at a fraction of the cost of workers in the South East.

This is not a plea for sympathy, it is a demand for equality of opportunity.

If we want to avoid another North South divide, with all that entails, we must encourage Business Investment in the North.

chris@projectsguru.co.uk

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A true story……

Customer Focus

Customer Focus

Back in 2006 Reflex Semiconductor was a medium sized electronics business with Sales Revenue around $200 million and a respectable Net Profit of around $5 million.

The company had several hundred customers and  a diverse and mixed product range.

Unsatisfied with performace the Board decided to appoint a new President of Marketing.

This guy was called Max Cutter (I kid you not) and he summed up his philosophy in his joining speech.

” Guys, I want to re-focus on our core business. 80% of our profits come from 20% of our customers but 80% of our efforts are in supplying the lowest contributing 20%”  (He was obviously familiar with the Pareto rule)

“I want to re-focus our business (hang on Max, how long have you been here) by eliminating the lowest earning 20% and refocussing our efforts on the highest grossing 20% and watch this business GROW!!!”

When the clapping and cheering had subsided Max set about his business. Gathering together a multifunctional team of career oriented individuals from all levels of the organization (well, engineer level up anyway)

Pursuing a mantra of ‘All Change is Good’ they set about trimming the companies customer database, removing anyone who contributed less than 0.5% of Total Sales.

This carried on  for several months.

The Quaterly results were due to be published when Max announced he was leaving the Company for a better position. Despite much persuassion and the offer of a 30% increase in salary Max left anyway. He did get a nice leaving present of  a Rolex watch presented by the CEO.

The Quaterly results indicated that Sales were down to $140 million (-30%) and Profit was now a loss of $1.2 million.

Naturally, a Consultant was brought in to assess the situation and, after one weeks analysis, She reported that NO ONE CUSTOMER REPRESENTED MORE THAN 0.7% OF SALES.

The companies customer base was so diverse and its product range so varied the Good Old Pareto Rule didn’t apply in this case and Max and the team had successfully exterminated 30% of a perfectly good business.

Unfortunately Reflex Semiconductor never recovered and went bust a year later.

Max went on to get a job in investment banking and invented something called the “Credit Default Swap”….

chris@projectsguru.co.uk

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May the best team win………

north-koreaWhilst the football may not have lived up to the hype so far we have still seen a couple of excellent team performances. So what is it that makes for a great team performance whatever the situation ?

* A leader who doesn’t just tell the team what to do but who provides a vision and who communicates that goal to the team by clearly outlining the task at hand and how it is to be achieved.

* The team are all pulling in the same direction putting individual disagreement behind them.

* The rewards of success are shared equally amongst the team members.

* There is no “finger pointing” if someone makes a mistake and the rest of the team rally round to support the individual.

* The Team leader provides all of the tools and instructions neccessary to complete the task.

As we enjoy the World Cup see which teams exhibit these qualities and measure their success.

The best team may not have the most outstanding individual players but the best team will win.

chris@projectsguru.co.uk

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United States of ChinAfrica…..

cinafricaRecent data from the IMF supports the view that China and Africa are becoming increasingly entwined as trading partners as China exploits the vast mineral and material wealth of the African continent in return for Capital Investment, machinery and technological know how.

The massive growth and change in China’s economy over the last decade have seen it increase in global power to the point where it begins to overshadow the U.S.A and Europe.

chinafrica2Whilst the U.S and Europe have been mired in recession the Chinese rescue package has ensured that growth in that country continues at a rate of around 10%.

This growth can only be sustained by the continued supply of mineral wealth and mined resources, hence the involvement in Africa.

So, should those of us in the Western democracies be concerned about China’s increasing involvement in this vast continent ?

As China has expanded and exported it’s own particular brand of State Capitalism it shows no signs whatsoever of either promoting or developing democracy.

If Democracy, free speech, tolerance and egalitariasm are to be encouraged as Africa develops as a continent perhaps the U.S.A and Europe need to be more proactive in developing and sustaining their economic development programs in Africa to ensure, by the end of the decade, we aren’t looking at the United States of ChinAfrica.

chris@projectsguru.co.uk

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Don’t fear failure…..

jigsawWe are conditioned to fear failure. We must succeed at all costs. Throughout our schooling we are expected to pass our exams with flying colours and to fail is to be labelled as useless.

This fear of failure is stifling and killing our ability to innovate. Thankfully many individuals overcome this conditioning and realize that failure paves the road to success. The secret is to NEVER GIVE UP. To fail is perfectly natural and through failure we improve and succeed.

Any product innovation will fail many times but with an attitude of continuous improvement you will eventually succeed with a product which exceeds all expectations.

For inspiration about new product development success and persistence in the face of failure read the inspiring story of Charles Goodyear the pioneering inventor of vulcanized rubber.

Don’t fear failure – Strive for success.

chris@projectsguru.co.uk

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Its all Greek to us……..

The riots & violence in Greece are a possible foretaste of what is to come in the U.K as we stand on the brink of  the most important election for over 30 years.

Whoever wins we should not fool ourselves, we are in for a period of huge change with severe public spending restrictions which will affect millions of our citizens.

This is not the fault of any individual or even as a result of the actions of a bunch of investment bankers. Capitalism is cyclical in nature and some of us have seen it all before to one degree or another. Boom and bust is the nature of the game. We have been very fortunate to live through a period of sustained growth with low interest rates over the last 13 years.

However, inevitably, this created a huge bubble in the U.K & U.S housing markets which was built on highly leveraged debt.

It was inevitable that a crash would follow and now is the time to pay.

Let us hope that whoever wins the election apportions the pain equally & as fairly as possible and that we can avoid the tumult which is currently sweeping across Greece.

We certainly do live in interesting times.

chris@projectsguru.co.uk

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We’re flying tonight…

BAplane2The planes are flying again over Europe as the restrictions imposed due to the Icelandic volcanic ash cloud have been lifted. But are the scenes experienced over the last few days a bleak glimpse into our collective futures ?

It is commonly acknowledged that oil reserves will not last forever but maybe less well known that the period of peak oil production is upon us and in the near future demand will begin to exceed supply. So what are the possible consequences:-

oilgraph1) Oil is like any other commodity and as demand exceeds supply price will increase. This was seen before the financial crash of 2008 when Oil peaked at $147 per barrell. It is current around $82 per barrell.

2) GDP growth is directly dependent on oil supply. China is currently growing at around 10% per annum – this cannot continue.

3) There is no readily available alternative. Biofuels represent a tiny percentage of total fuel volumes and use up valuable land resource which could be used to grow food.

4) We will experience increasing cost of food and other essentials.

5) Air travel will become the preserve of the rich. This can already be seen in the UK with vastly fewer people taking foreign holidays following the financial crash.

6) Our world will shrink; the global village we have experienced since the 1960’s will shrink as travel costs reduce our ability to roam.

7) There will probably be more conflict on a global scale as States compete for scarce resources.

This all sounds like bad news but there will be positive outcomes:-

1) Reduced consumption of Oil will reduce the amount of carbon generation and lessen the risk of global warming.

2) The crisis will force us to develop alternate energy strategies.

3) Being less dependent on “the black stuff” will enable us to take independent geo-political decisions less hindered by our current needs.

4) We will be more concious about re-use and less wasteful of resources.

We live in interesting times.

chris@projectsguru.co.uk

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ESA launch fuels global warming debate..

The successful launch and deployment earlier today of the European Space Agency’s Cryosat-2 satellite represents a tremendous achievement for the organization. The satellite will measure and track ice thickness in the polar regions providing invaluable data for environmental scientists. Hopefully this data will prove , one way or the other, that global warming is indeed a fact and is caused by man’s activities and needs to be addressed politically in a united and effective manner.

The Scientific project has been ably led by Professor Duncan Wingham of the University College London who commented:-

“Today, it’s just a real pleasure; and I speak on behalf of all the scientists who will use the data to just thank all of those many people who contributed to this mission. Personally, it’s been a fabulous ride for me,” he told the assembled guests at the German centre.

Congratulations Professor Wingham & all at ESA for the successful launch of this incredible Scientific venture.

chris@projectsguru.co.uk

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Masterchef..lessons for PM’s #pmot

MASTERCHEFI don’t know about you but I love BBC’s Masterchef, not just for the food and the cooking skills but the lessons it has for Project Managers.

And before I hear you scream “not another popular T.V program – tenuous Blog link story” please bear with me, bear with me.

First of all I love the passion. The contestants exude passion about food and cooking, we experience the love of their craft and their pain when their expectations are not met. One scowl off John is enough to reduce the strongest contestant to tears. As project managers we need to display the same level of passion for our project deliverables.

Secondly I love the drama of execution as the dish is put together to arrive at the nominated time, cooked perfectly, presented beautifully and demanding to be eaten. The time management skills on display would put the best project manager to shame and if we could deliver our projects to the same standard we would be very happy PM’s indeed.

Of course, like any project, things can go wrong and mistaking sugar for salt will end in disaster, a lesson in attention to detail there.

At the end there is only one winner but the runners up all learn from their mistakes, another attribute of good project managers.

chris@projectsguru.co.uk

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