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Grass Is Always Greener

Last week I was facilitating the quarterly check-in meeting with one of my oil and gas client’s teams. These 55 energetic folks are responsible for delivering $120 million in revenue this year. As you might imagine, they are feeling some pressure to execute efficiently. One person began her comments by saying, “Everyone needs to understand our industry is changing quickly…” The only thing I remember about the rest of her statement is it appeared she was trying to justify some of the challenges they’ve faced thus far.

My guidance was to suggest they not fall back on a “we’re different than everybody else” crutch. I mentioned the airline commission cuts of 1995 – and ultimate elimination a few years later – and how one-third of travel agents evaporated from the industry.

I asked how many of them would like to be a printer right now. No one volunteered. Then I said, “Imagine you work at Amazon. You’re sitting on top of the world with Kindle…until Steve Jobs introduces iPad. How are you feeling today?”

Evolution. Commoditization. Overcapacity. There will always be something that jumps up and disrupts the smooth road you’re walking.

I was the co-owner of a sports travel company during the commission cuts. People across the industry were screaming for a class action lawsuit. We took a different approach – gathering our leaders and asking, “What now?” It took about a year for us to discover a better path. Today, that business – which I sold to my partner – is a two-time recipient of the “Best Travel Company in North America” award.

Of course, there was a class action lawsuit regarding the commission cuts. We eventually received a check for about $1,000. Good thing that wasn’t the change we counted on for success.

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Quick Reflexes

Toyota instructed dealers yesterday to stop selling the Camry and seven other models due to the potential danger of accelerator pedals sticking. The company recalled more than two million vehicles – on top of the four million previously recalled because of the risk of a loose floor mat jamming accelerators.

Great move by Toyota to intervene before this issue leads to more accidents and perhaps tragedy. Engineers are working around the clock to determine the cause of the latest concern. Tough challenge for dealers who suddenly lost a significant part of their revenue stream and now have to deal with confused/angry customers. (I can only imagine how many calls their dealerships will take today with people asking, “Can I drive it or do I need to park it in my garage?”)

There is a great lesson here for all business leaders. You can’t wait until something happens to decide how you’ll react. Make contingency plans now for potential disaster later (think: weather-related disruptions; product delivery delays; bad publicity; sudden death of a key team member; etc.). While you won’t know the specific problem that will arise, you can decide how you will handle most situations.

Be sure you have in place procedures for knowing: a) Which essential employees need to be notified first; b) Who is authorized to speak for your organization and what consistent message will be delivered; c) How you will handle the inevitable media rush; d) What steps you will take to rectify the situation as quickly as possible; and e) When you will announce changes and provide status updates.

Since 1983, I have owned in succession three Toyotas and driven them a combined 350,000+ miles. They’ve been great cars – needing only minor repairs – and two of our children learned to drive on our current 2001 Camry. I’m guessing the smart folks at Toyota will figure this one out quickly… and get right back to work rebuilding trust in their highly respected brand.

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Give Where You Can

And the last of the Top 10 things I learned in 2009:

#1

We Are The World – Are you aware a billion people do not have access to clean drinking water and nearly 40,000 children die every week from lack of this basic need? Charity: Water is one of the nonprofits that provides clean and safe drinking water – with 100% of donations funding freshwater projects in developing nations. Just $20 gives a person in Africa safe drinking water for 20 years. Take a look at how Scott Harrison and his organization are saving lives.

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It’s Best to Address

The penultimate thing I learned in 2009:

#2

Think It, Say It – One of my weaknesses as a husband, father and friend is trying to keep those I care about from feeling pain. Thus, I tend to withhold bad news and act as a peacemaker whenever there is rising conflict. (Interestingly, this never is a problem with clients; when needed, I ask hard questions and address tough issues.) After one challenging situation this year that ended with Kathy saying, “Why didn’t you tell me?” I vowed to stop being the great protector and start being the great communicator.

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Money Isn’t the Answer

Continuing counting down the Top 10 things I learned in 2009:

#3

Hold That Tiger – Dan Jenkins, the legendary former SI writer and author of many humorous sports novels, once described the “10 Stages of Drunkenness.” Number one is ‘Witty and Charming.’ Four is ‘Clairvoyant.’ Six is ‘Patriotic.’ Nine and Ten: ‘Invisible’ and ‘Bulletproof.’ In the last three weeks, we learned the invincible Tiger Woods was drunk on power and wealth. The meteoric fall from grace of another high-profile celebrity is a reminder that happiness does not come from money and fame. If it did, then so many blessed with so much wouldn’t act so little.

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