6 reasons to be cautious when hiring an MBA

I just read an interesting article from Productivity501 called never hire a MBA. While the title might seem severe it does highlight several downsides of hiring a MBA graduate - Here is my summary (for the full article read here)

There are a lot of people who overvalue an MBA. A master’s of business administration might look attractive when hiring a new employee but here are some points to be careful of when hiring them.

If someone has a master’s degree in running a business, why are they coming to you for a job? Years ago, it made sense. It was very expensive to start your own business. That isn’t the case any more. So if someone with an MBA is coming to you there are several possibilities:

1. They can’t run a business. - If they can’t make it on their own, do you want them working for you? Is it possible you can find someone better without an MBA? If you need a particular part of their skill set, maybe it is a good fit. Just be aware that if you need someone with a really good skill at running a business, you need to understand why you should trust their skills more than they do.
2. Want real world experience. - This is a valid reason, but just make sure you aren’t paying someone for their MBA experience if they are coming to you because they don’t really have anything beyond their diploma. Someone with an MBA who says they want real world experience could be an excellent find and become a very passionate employee. However, as we’ll discuss later, one of the drawbacks of many MBAs is that they often over-estimate their skill set.
3. No ideas of their own. – Not necessarily a bad thing if you just want someone to execute your business plan, but make sure you aren’t paying a premium for them to have good ideas. If they can’t come up with a good business idea on their own, they may not be able to come up with good ideas for you.
4. Too specialized. - Someone who specialized in one specific area may not have a wide enough skill set to run their own business. If their expertise fits well with your business then it can be a great fit for both of you. However, usually the idea of an MBA is that it is a general education in all aspects of business.
5. Lack of Experience - Someone with a fresh MBA looking for a job, may not come with much real experience. This isn’t necessarily a bad thing if you understand that having an MBA doesn’t automatically make someone good at their job. A large number of people are going back to school to get an MBA after having worked for a number of years. On one hand, you may find someone who has a great deal of real world experience that they can apply to your business problems. On the other, you may be dealing with someone who is making a significant career change. When you look at someone’s experience make sure you aren’t throwing them into a situation that goes well beyond what they are capable of doing. It is easy to tweak a resumé to showcase skills in the past to align with the jobs they want in the future. If their resumé says they have “management experience” don’t automatically assume they possess the skills to handle having 40 people reporting to them. Make sure you understand exactly what they managed, the extent of their authority and the results they achieved. If their only experience with leadership is being under the leadership of others, they are likely to emulate all of the bad habits without picking up on any of the good ones. If you need a manager, don’t give someone this position based solely on their MBA. Make sure they have real experience with good results in management either before or after getting their master’s degree.
6. Overconfidence- This is more of an issue with people who have had very little real work experience. While most MBA programs offer good content, simply being exposed to a lot of great ideas doesn’t say much about your ability to implement those ideas in real life. Just because someone took a class in negotiations doesn’t mean they are any good at it. Worse, they may think they are good at it and blindly cause a number of problems. Confidence is good, but not when it blinds you to your inability. For an MBA, the pretty piece of paper they have hanging on their wall can make them less careful. It can encourage them to jump into things that they have no preparation for. It doesn’t take too much life experience to correct this, but you may or may not want to be their employer during this learning experience. Further, the value of the MBA is quite a bit lower if their real skill set is developed on the job at your expense.

Conclusion

If you are looking to hire someone, don’t overlook them simply because they have an MBA, but at the same time don’t over-value their degree and let it blind you to their actual real-life skills.

But, if you have no skills in running a business today, getting an MBA isn’t going to change that.


Read more: http://www.productivity501.com/never-hire-an-mba/7918/#ixzz0rG6JgqIQ

Four reasons why good Strategies fail

Every week I recieve the Growth Tips from RESULTS.com and the recent one really resonates with most large businesses.

If you do not recieve the Growth tips already take a few minutes to log on and have a look.

In their latest post COO Stephen Lynch identifies the top three reasons why good strategies fail?

1 - Execution
2 - Execution
3 - Execution

In the words of the immortal Tom Peters he forgot the fourth one - Execution

In the book “Making Strategy Work: Leading Effective Execution and Change”, MBA trained managers know about planning, but they know very little about how to execute a plan.

A survey of senior executives at 197 companies showed that firms achieve only 63% of the expected results of their strategic plans. The key reason is they don’t know how to execute effectively.

Here is the insights from the Business Execution Experts on the causes of execution failure:

1 - Lack of strategic focus.
2 - Resistance to change.
3 - Poor communication.
4 - Incentives not aligned with strategy.
5 - Not paying attention.
6 - No cadence.

Read the full article here

Talking to a company over the past week their summary of the Strategic Plan was 34 pages long. The full version was well over 100 pages!

Most of the people who worked where the rubber hot the road did not understand or know how the work they were doing fitted into the big picture. As a consequence they continued to work on the biggest enemy of execution - Business as usual.

Simplifying your strategies are essentials if you want to win.

Michael Porter the Harvard University Professor of Management and Economics says “Many managers simply do not understand the importance of having a clear strategy. Strategy is about making trade-offs. The essence of strategy is choosing what not to do”

Jeff Imment who succeeded Jack Welch at the head of GE says “What is strategy but resource allocation? When you strip away all the noise, that’s what it comes down to. Strategy means making clear cut choices about how to compete. You cannot be everything to everybody, no matter what the size of your business or how deep its pockets. You have to figure out what to say NO to”

Jack Welch, the former CEO of GE says “Strategy is not a lengthy action plan, you should be able to fit it on a single page"

Here is a link to a document from the Business Exection Experts for simplifying your company strategy onto a single page so all of your people can see the strategic priorities - everyday.

If you would like assistance on understanding how to use it they often have free workshops accross New Zealand, North America and the United States Click here to find one near you

How to get referred more often

Firstly there is nothing new here it comes from Entrepreneur and founder of The Strategic Coach, Dan Sullivan. In his book he talks about four referability habits that are the building blocks of great relationships.

Why I have decided to post this blog is that we are seeing a new generation of people and many seem to have never been exposed to these simple habits or forgotten them.

These habits are very simple

1. Show up on time
   
2. Do what you say you will do
   
3. Finish what you start
   
4. Say please and thank you
   

Here they are in a bit more detail

1. Show up on time
It's sounds pretty basic doesn't it? But respecting someone else's time shows that you value them. Most smart business owners show up on time when they are meeting a prospective client. People appreciate it when you value their time. That's why strategies that incorporate this habit into a brand promise is often quite compelling. Driving down south this weekend I was reminded of this seeing a plumbing van with the word's "I will turn up when I say I will" on the side. When you are next calling a plumber, who are you likely to call? The plumber that's done a standard letterbox drop - or the one that says "I will turn up when I say I will or it's free!"?

2. Do what you say you will do
Again, so simple. Yet so many people don't seem to be able to stick to this. If you say you're going to call to follow up, do so. If you promise to deliver a product or service by a certain date, do everything you can to fulfill your commitment. Don't promise anything that you aren't going to be able to deliver.

I have found that the best promise to offer someone is " I promise I will do my best". Often we see Salespeople making promises that service simply can not deliver, none more obvious than software sales people

3. Finish what you start
This shows you have commitment and that you'll see things through to the end. Sure, I know that some projects or jobs blow out because of unexpected circumstances. And, therefore, the time you allocated to the job isn't going to be enough to cover the original brief.

This is a delicate situation. If the blow-out is because of a miscalculation on your part, my advice is to wear it. Treat it as a learning experience so that you estimate better next time. However, if the variation is due to increasing demands from your customer, then it might be time to renegotiate delivery or payment in a diplomatic way.

Most Entrepreneurs fail miserable at this habit. Fantastic at starting projects but fail dismally at following through. If you make the commitment to start it either see it through personally or make sure you have a team around you that can – and make sure they do

4. Say please and thank you
Basic courtesy is a winner.

Next time you are standing in a line with parents with children. Listen to the way they order. My experience is that they will emphasis to the children the value of this habit and then not do it themselves. It is just simple common courtesy and we miss so of of it in today's society because people are just too busy.

Are you likely to refer business to someone that doesn't take the time to say thank you?

So when was the last time you thanked a key relationship

Ultimately, we all like doing business with people who do what they say they will, when they say they will - and who are nice to deal with!

Simple, really.

The 6 things you need to do to take advantage of an economic recovery

History tells us that the biggest shift in market share happens in a recovery cycle. Unfortunately history also tells us we are terrible at learning from history.

Consider your industry you work in right now and ask yourself if there will be some companies that do better out of the recovery than some of their competitors. The answer I hear almost unamiously is yes. If you agree then ask yourself this – do you think they will have planned it?

Having a great strategic plan is just a start, if you don't have one you lose. Armed with a great plan and all your knowledge you're still only a small way to succeeding. Jim Collins says it is 1% of success and Tom Peters says it is 2%. Bottom line doesn't matter how good your strategy looks on paper, it means nothing if it doesn't get applied.

Keeping everyone focussed on getting the right things done is everything. One thing the past economic climate has shown the business community is how high the price is of not doing it. Actually it's the key to success in all times, the price of not doing is just higher now.

Here are the 6 biggest lessons I have learned over the past 18 months in my business;

1. Start with "why?" – if you want people to go above and beyond in their role them a bigger purpose. Your company's purpose and vision need to be something alive that everyone knows how they are contributing to. If your team aren't capable of achieving the goals get a new goal or a new team
   
2. Hire for fit to values – if you want to build a team that pulls together and delivers for the company – and for each other – then make sure you have articulated your companies values, and that you hire people who align with them and demonstrate them. Start with yourself always.
   
3. Transparency – Make sure that people know the numbers, the targets and who is expected to do what, the more "real time" the data the better
   
4. Make many mistakes fast and learn from them – Encourage people to have a go and learn from what works and what doesn't. Don't give them all the answers (your team will come up with better ones only if you don't give them one first) and don't persecute those who try things that don't work, it is those that don't try things that stop you moving forward.
   
5. The enemy of Execution is Business as usual - Get everyone to commit to a weekly task that is not business as usual but is moving the company towards it's longer terms goals. Make sure that they understand that they are helping the company achieve it's vision by contributing. Do this as part of your weekly meetings and review the following week.
   
6. Hold people accountable – The hardest thing to do gets easier when you've done all of the above. If there is transparency on numbers and also completion of tasks and goals, when your team understand why you are all working towards your vision, when people share a common set of values with each other and the company, then you have permission to hold people accountable for their results. The funny thing is, if you do all the other bits, you won't need to. They will get it done for the company, and for each other – and not because they had to. Make sure that as the leader, you front up every week with your task completed and your numbers met.
   

As you can see, there is a mix of the soft and the hard to get a culture working that is about performance and delivering RESULTS. You need to be prepared to do the work on both having the big picture vision – and measuring and managing activity and effort. The two area's can't work in isolation and the sum of both is far greater than the whole.

So you know how I asked the question about a company in every industry benefiting more than their competitors? – Why can't that company be you?

Finding clever ways to get to Key Decision Makers

This is a video on an experiment Alec Brownstein did for a job interview

Technology is now allowing us to be more inventive than ever before and the possibilities this creates for businesses trying to connect with key decision makers is exciting.

The question for you is how are you going to use it?

Working for a higher Purpose

Studies show that giving your people a real purpose to there work lifts engagement and productivity. A great example of a company in Christchurch that has a meaningful purpose is Isaac Construction. By combining conservation with construction they are making a real difference not only for the people in their company but for the people in New Zealand.

Thanks to the hard work of the team at Isaac Construction New Zealanders will have a much better chance of ever seeing endangered species. The company funds The Isaac Conservation Trust which has just built a skinkery – that is a home and habitat for rare Grand and the Otago Skink- and the first skinks have just been transferred into their new home at Peacock Springs just outside Christchurch.

The Grand and the Otago Skinks are from the Hawea-Lindis area in Otago and are now part of a captive breeding programme. The skinkery replicates the skinks natural habitat by including huge rocks and native plants in the cages. The skinks will be kept warm by “under-rock” floor heating. I was lucky enough to be able to hold one as we helped them out of their plastic boxes and set them free to explore their new home.

I grew up in this part of New Zealand and remember searching for these reptiles in my youth so have a natural affiliation with the work that The Isaac Conservation trust is doing and we are really enjoying working with their company

The Isaac Wildlife Trust has been working with the Department of Conservation and has been successfully breeding endangered birds at Peacock Springs for many years. But now they have a new challenge- the Grand and the Otago Skink!

So when you ask the team at Isaac Construction what they do. Instead of just laying roads and asphalt the help fund the protection of New Zealand's endangered native Floura and Fauna.

Isn't that a whole lot more reason to get out of bed each morning. They think so.

So.... what is your company really passionate about and what is your higher purpose. If you don't have one you should get one.

5 ways to improve your Company Culture

Research recently conducted by a multidisciplinary team from Auckland, Massey and Waikato universities, and Birbeck University in London found nearly one in five employees are being subjected to overbearing or belittling behaviour at work.

The survey of 1728 workers in the health, education, travel and hospitality sectors found 18% had been bullied, while 75% had suffered workplace stress. Read full article here

"Bullying is happening and it is not being addressed. It has long been accepted that this is the way of working -- if you cannot stand the heat, get out of the kitchen," says study leader Tim Bentley, associate head of Massey University's school of management.

Levels of workplace stress and bullying were greater than expected and one of the main causes was ineffective leadership.

A study and the end of last year by Hays International also highlighted that two thirds of employees believe their managers do not know what motivates them to perform and one third of staff are planning to leave when the economy recovers. Addressing these issues requires a significant change in the way people see, think and act about their company culture.

Every Culture in a company has a smell - how is yours?

Here are the 5 things that have the biggest impact in improving company culture.

1. Define and articulate the real core values of your businesses not some fluffy statements that are empty words on a plaque. This drives positive behaviour and facilitates the removal of people who do not fit well with your culture

2. Use behavioural profiling tools to improve interpersonal communication and working relationships. This will also identify your people’s strengths and help you understand how to leverage your people’s strengths to increase productivity and personal fulfilment.

3. Identify and overcome any dysfunctional behaviours demonstrated by your management team

4. Survey employee engagement to identify the areas that require attention – a proven way to increase sales, productivity, and customer satisfaction - whilst reducing accidents, absenteeism, and staff turnover.

5. Conduct well-structured meetings every week with your team members. Here you can recognise and reward positive behaviour and address any issues before they become a problem.

Implementing these disciplines can provide a challenge but not as much of a challenge as doing nothing.