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Taming the Elephant in 2011

2010 has been the year of the great stall. The world marketplace has shifted dramatically, and our society can’t stop talking, reading, and writing about it. Yet many of us haven’t gone much further than talk. We haven’t done anything yet. The decisions, changes, and actions needed to actually deal with the new marketplace have been missing in action.

Why doesn’t anything seem to be happening? Fear — that insidious feeling that grips the gut with unrelenting tenacity has been ruling the day.

My friend and client David Geller, CEO of GV Financial Advisors, focuses on “helping successful people use their wealth to create the life they desire.” As such, he has spent a great deal of time researching happiness and the fears that prevent us from getting there.

David tells of a talented attorney friend who didn’t enjoy practicing law any more. However, despite years of talking about doing work he didn’t enjoy, the lawyer kept on working. He failed to make a change despite what his gut was telling him. So David issued a challenge: “You’ve spent 1500 hours this year doing something you don’t enjoy because you’re fearful of an uncertain future. But the future is always uncertain — that won’t change.  Instead, focus on the things that ARE certain – things you know you can rely on.” In this case, David’s friend has a great marriage to a successful executive, is very smart, works incredibly hard, and possesses transferable skills in unraveling complexity and creating future strategies. Despite those realities and opportunities, he hasn’t yet made a change; the attorney is still allowing fear to rule his life.

You have to steer!

David also points to “The Happiness Hypothesis,” in which writer Jonathon Haidt uses a metaphor of a rider atop an elephant. The rider represents the “the seat of reason and logic” while the elephant is “gut feelings, visceral reactions, emotions, and intuitions.” ”The elephant and the rider each have their own intelligence, and when they work together well they enable the unique brilliance of human beings,” Haidt writes.

We need that elephant – he’s our gut, our emotions, our warning system. However, we still need to ride and steer, because if we let the elephant run wild, we’re headed for a lot of trouble.

Right now, many of our elephants are running wild because we’re too fearful to take control. We all need to figure out how to quiet the fear, tame the elephant and make reasonable, rational, logical decisions to take control in 2011.

Marketing guru Seth Godin explains it another way in his blog:

  • “This better work” is the thinking of safety, of proven, of beyond blame.
  • This might work,” on the other hand, is the thinking of art, innovation and insight.

Do you see the difference? “This better work” is driven by fear. “This might work” is making a decision to move forward.

A reactive strategy isn’t courageous

Here’s another way to think about fear: being proactive versus reactive. It’s easy for companies to become reactive and passive, particularly when a market is booming, since anyone can do well in a booming market.  But a reactive strategy is short lived, because the minute the market declines, reactive companies suffer most.

Is your company reactive?  Well, how quickly do you drop your prices just to snag a deal? Are you selling to any customer who knocks on your door? Are you responding to Requests for Proposals?  Launching desperate marketing tactics and praying they will solve a crisis?

Proactive leadership, on the other hand, is courageous because it requires strategic and intentional action. It requires real leadership, and many companies are desperate for that leadership right now.  The beauty of leadership is that if you, as leaders, take proactive steps, others will follow. Employees, clients, and colleagues want to follow. They’re looking now, more than ever, for someone to lead the way. Positive forward motion is contagious.

Taming the elephant

So now that we know that our problem is fear, what are we going to do about it? We have to address it in two ways. First, we have to tame fear in our companies. Second, we need to tame our own personal fears.

Five ways to tame fear and take action in your business

  1. Get data. Data will help you quantify trends in your market, your customer base, and your business performance. It will also help you see the impact of your short-term decisions.
  2. Conduct experiments. What would happen if you stopped doing X? What would happen if you start doing Y? Devise experiments to gain confidence and guide you through uncertainty.
  3. Build an advisory team of people you respect from other industries and functions. They can provide perspective that you may have never considered.
  4. Build your company’s expertise.  Perhaps the best way to overcome company fears is to build your knowledge and experience.  Send your executives and managers to new training programs; hire new employees from outside your industry; seek out seminars, consultants, forums and more.
  5. Define the issues and questions you need to resolve. If you don’t define specifically what your organization is afraid of, you won’t be able to quickly tackle and tame those issues.

Taming fear in your personal life

  1. Focus on positive things you can rely on.
  2. Identify and take small steps toward larger changes. Explore “what if” scenarios to identify the real risks in a decision, then find ways to mitigate the worst case.
  3. Exercise, eat well, and take good care of your health. Try meditation or yoga to help you stay calm and present. Pursue your hobbies and activities that you enjoy.
  4. Talk with a friend, advisor, or mentor, and reach out and help others as well — connectedness is an important stress reliever.
  5. Pursue lifelong learning about subjects that interest you as well as those that create stress or uncertainty in your life.

CONCLUSION

Regardless of the tactics you use to tame your elephant, recognize that he’ll require constant tending and care to keep him in check, especially during challenging times. And you must be attentive of fear in your company and in your personal life; as an executive, those lives are inextricably intertwined.

Let’s stop talking and take action in 2011. Let’s choose to proactively make the decisions, confront the challenges, and try new ideas. Let’s create differentiated strategies, execute ruthlessly, communicate value, and partner with others. Let’s get data and try experiments, build our expertise, take small steps toward our goals. Every day, let’s make it our mission to coax the rider and elephant into working in unison.

“The reward of a thing well done, is to have done it.”

~ Ralph Waldo Emerson

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  • 7 comments so far

    • Barry Soloway

      1

      Your CEO Challenge hit the nail on the head once again. Yet another insight into the impediments within a company that separate it from its customers involves the misdirected focus of Product Management. Looking at this functional title and the work efforts that usually accompany it - you tend to see attention to detail (i.e., management) on the inside and infrequent visits with customers on the outside. I prefer to use the functional title of Product Realization. Realization now has two parts to the definition - (1) realize as in bringing into being or producing a tangible output, and (2) realize as in producing a profit. My definition of Product Realization is a process through which a company designs, executes and commercializes a product or service that satisfies customers. When you satisfy customers, they buy products or services which lead to profits. When you don't satisfy customers, your competitors will.

      Reply
    • Jane Adamson

      2

      Barry, You've touched on a topic we discuss a great deal...alignment. Revenue strategy shouldn't reside with just a sales dept or a marketing dept. It resides with the leadership team and EVERY part of the organization is aligned to it. You are right, a product manager should focus outside with customer satisfaction and customer transitions. I like your definition of the term "Realization". Jane

      Reply
    • JB

      3

      Jane, I think your article was terrific! Having been doing revenue turnarounds/transformations for 5+ years now, I also find most of the organizations seem to be experiencing some form of this 'revenue chaos' by the time I get there, and are usually in serious pain. What has worked over and over (to your point) is a published and well communicated revenue blueprint (that spells it out in detail) in order to achieve desired growth, with associated timeframes. We all know a strategic plan is only as good as the organizations ability to execute (which most cannot do well), but it continues to amaze me how many companies don't have a collective handle on where they 'are', compared where they need to 'be' (an by when). Nor do they have the steps broken down in an clear and orderly fashion, with which to attain these future goals.  I often get it down to a one pager, and pin it to each the senior marketing, engineering, product marketing, sales and 'C' level executive forehead, and have them repeat it 20 times a quarter (repetition doesn't spoil the prayer)... From there we have each dept boil their supporting strategy/key initiatives/tactics down to a one page, get all synched and begin the much more difficult task of execution. Each one of these companies consistently suffers from lack of any such framework, which as you point out, if done properly, can result in significantly more predictable and faster times to desired revenue. It synchronizes, focuses and gives context to the entire company for the decisions that need to get made everyday in order to execute on the plan. People thrive on a thoughtful, well structured direction that itemizes the long term vision. Everyone in the company is responsible for revenue, and they need to understand where they fit into the equation and how others (especially the ones on the front line) are dependent upon them delivering on their piece of the plan. I'm currently working on a very challenging revenue transformation with a division of a F-500 company that was in a state of such chaos several months ago, and as such your article resinated with me, ('chaos' being the operative word), and I felt compelled to add some comments that might be helpful to others. Thank you for the great website. JB

      Reply
    • Katharine Halpin

      4

      Rick- Once again you've hit it out of the ballpark. Thanks so much for sharing your wisdom and these profound statistics. WOW!

      Reply
    • Lillian Coury

      5

      Jane -- Provocative and enlightening...we share the opinion that a strong business culture, built on clarity of goals and effective communication of those goals, creates success! Your focus is on integrated corporate culture...mine on integrated workstyle to optimize achievement and satisfaction... What a wonderful world!

      Reply
    • Larry Cassidy

      6

      I am reminded regularly that "we just don't get it," and confess to being part of that..... * In mid-'07 I warned the execs with whom I work of the coming economic crunch, and then the likely credit crunch -- and blew the scope of it all by a country mile! Lesson #1: When it's bad, it's almost always worse than we imagined. * Then in 2009 I started banging the drum about "the new normal" and "new business models." It took a while for that to morph into pushing folks to get back to running businesses in a sound, balanced and sustainable manner. Lesson #2: A bold vision matters, but realistic and prudent business practice keeps the doors open. * Today we lament the dramatic fall of our economic machine. It sure has stung. That agreed, the last 24 months has probably been about finding our way back to the place on the "trend line" where we would have been with more typical growth, and without all the over-reaching and over-indulgence. Lesson #3: You can nudge Mother Economy. but you cannot fool her for long. So.....live and RE-learn.

      Reply
    • Rick McPartlin

      7

      Larry, Thanks for those on target comments. The challenge is truly to speak up in a compelling way about the emperor’s cloths when the emperor is making a lot of money and does not believe they need to change. As you say we can tell the difference between sound, balanced and sustainable businesses and bubbles. That is we can tell the difference if we are willing to ask the hard questions, apply the principles, best practices and metrics from revenue science. Leaders need to implement revenue strategy consistent with what the market and “Mother Economy” has taught us over all these years and avoid the trap of temporary success for long-term sustainability. Thanks and keep banging the drum and helping leaders to see the difference between the science of predictable and profitable revenue growth and dangers of bubbles. Thanks, Rick

      Reply

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