by George Lee Sye

I am often asked this question …

“What value will we get in return for training people in lean six sigma?”

Fair question I guess.

Here’s the answer …. NONE!

Let’s cut through the crap and use a little blunt force trauma … training NEVER generates a return!

If a manager thinks that training somebody is going to suddenly impact the bottom line, they’ve missed the point entirely.

The ONLY thing that will generate some return is the utilisation of what it is one learns.

Therein lies the problem I see in many [if not most] improvement and leadership training programs today; people learn something and then return to work and go straight back to their old job and ingrained ways of behaving.  Hmmm, George, don’t open that can of worms.

Let’s instead refine the question and ask this …

What quantifiable value will we get if we implement and effectively utilise an appropriate business improvement strategy (which might include Lean, Kaizen, TOC, Six Sigma or any combination of methodologies)?

Much better question!

Let me attempt to answer it this way.

What do the numbers tell us?

PART 1 – THE FINANCIAL RETURNS CAN POTENTIALLY BE SIGNIFICANT

In the 2nd edition of my book, Process Alchemy, I quoted figures drawn from the publicly available financial reports of some major companies. (refer to page 54 of Process Alchemy – 2nd Edition)

Those figures are a bit old now, particularly if we focus on the $ values. So let’s not do that.

The problem with $ values is they vary so greatly and we can’t really compare conpanies against one another because of the variation in size and situations.

We can instead focus on a metric which is more appropriate across all organisations.

That metric is the $ value of bottom line impact converted into a ‘percentage of revenue’. Now we begin to get a clearer picture which we might use to understand impact on our own companies.

The returns experience by companies who do it properly are reportedly up to about 3 percent of revenues.

• General Electric – 0.35 to 1.79 percent (1996 to 1999)
• Motorola – 0.44 percent (1986 to 2001)
• BHP Billiton – 0.23 to 0.74 percent (2001 to 2003)
• Black and Decker – 1.91 to 2.27 percent (2001 to 2002)
• Honeywell – 2.11 to 2.80 percent (1998 to 2000)
• American Express – 0.84 percent (2002)

How does that relate to your situation? I’ll leave it for you to do the maths.

If you are seeking this type of quantifiable return, my advice is this.

1. Clearly understand the performance of your VALUE STREAMS – a business unit leader or line manager who cannot refer to or analyse a value stream map of their business will never realize the potential of their business

2. Write your BUSINESS PLAN (I mean at the business unit / asset level) around profitability targets and any other appropriate business objectives

3. Identify where you need to make PROCESS PERFORMANCE SHIFTS in order to achieve that plan – your PROJECT PIPELINE will eminate from these focal points

4. If you need to train people to close the PROCESS IMPROVEMENT SKILL gap, do it properly – develop them according to your needs, don’t just copy somebody else or reinvent the wheel to satisfy somebody’s ego

5. If you have trained improvement people (green belts and black belts), get line managers to USE THEM for projects that are going to make process improvements related to achieving business plan objectives

Always remember this … Lean Six Sigma today is a business execution strategy, not speculation about where you might save a few dollars by training people.

PART 2 – FEW ACTUALLY SUCCEED

It would be impossible to get a true picture of company failures and successes with lean six sigma initiatives.

Even so, I have heard it claimed consistely around the traps by consultants and industry experts that the failure rate is in the vicinity of 80 percent.

Only 20 percent succeed? Seriously … that’s ridiculous!

Towards the end of the GFC (the first one I mean), I spoke to representatives of 126 companies around australia and asked them one question – Have you increased, decreased, maintained the same or eliminated your efforts in business improvement in response to the GFC?

Here’s what I learned – 92 companies had either REDUCED the size of the business improvement team (and the financial commitment that went with that) or had ELIMINATED it completely.

I know one guy who was given 30 minutes notice that he was now redundant!

Why?

I have one thought here … if business leaders / executives in those companies believed BI was generating a genuine $ return, they would never decrease their efforts or investment in it.

I’ll leave you to draw your own conclusions.

If you want to kill your BI initiative do this!

Number 1. Just TRAIN PEOPLE (Western Mining Corporation did this when they trained some 15 black belts during 2004 – not one project was completed in the 12 months I observed them and only 1 of those black belts was still at the company 12 months later)

Number 2. Don’t drive your improvement PROJECT PIPELINE from a value stream perspective, do it piecemeal and without any real framework behind it

Number 3. Do not SYSTEMISE BUSINESS IMPROVEMENT nor make it part of the business execution process – let it sit out there on its own as a bolt on and another thing to do

Number 4. Set it up so it only survives and thrives on the back of a HIGHLY MOTIVATED INDIVIDUAL and hope they stay in your company

Number 5. Take on as many projects as you can and create a STATE OF CONTINUOUS CHANGE and initiative overload – don’t worry about that control phase [of DMAIC] where we lock in change and stability

Number 6. And finally … if you do train green belts and black belts, LEAVE THEM IN THEIR OLD JOBS and pray they use their newly learned skills to make business related improvements

It’s depressing to see this so often in businesses in Australia.

Anyway, enough of that, let’s take a quick look at real business improvement benefits.

Benefits you can (and must) decisively set out to achieve.

1. Increase Earnings (cost reduction and / or revenue increases visible on the profit and loss statement)

- Reduce fixed and variable costs (i.e. power, insurance, maintenance, cost per unit produced, rework, life of non capital assets, interest paid)

- Increase revenue (i.e. process yield, unit sales volume, interest earned, unit price)

2. Convert Current Assets Into Cash (move balance sheet $ into the bank as cash)

- Reduce debtors (i.e. payment cycle time, accounts receivable)

- Reduce inventory (i.e. parts, work in progress, stockpiles)

3. Defer or Prevent Capital Outlay

- Increase the useful life of plant and machinery

- Increase plant capacity (i.e. reduce defect production rate, increase production capability)

4. Increase Asset Value

- Increase future growth potential (i.e. customer data base, future production, management capacity, staff capacity, process capacity)

- Reduce business risk (i.e. key person risk, cash flow smoothing, potential liability etc)

Here’s some tips to consider so you don’t waste your money!

TIP 1. If you plan to do some training and have no idea what the return will be, don’t do the training till you do.

TIP 2. Get support in developing the framework that will drive quantifiable financial success with this improvement thing we all talk about.

TIP 3. One size does not fit all … Six Sigma may well be the correct methodology to introduce first in a manufacturing business, Lean is more appropriate in the first instance in an organisation where throughput is the main issue.

TIP 4. One size does not fit all … Lean Six Sigma for manufacturing is not Lean Six Sigma for mining or energy.

TIP 5. If leaders and line managers are not going to take responsibility and drive this, forget it. Invest your money in rental property instead.

TIP 6. The initiative must impact the key variables that in turn positively affect (a) the multiple of valuation (Price Earnings Ratio or PER) and (b) company earnings … only then will you get corporate executive support.

- Note – if you’re not sure what this means, get a copy of How to Create Wealth IN Business – for Kindle or iPad only

TIP 7. Put energy into project pipeline development and management.

- Note – some good learnings can be gleaned from How To Select Great Improvement Projects – available for Kindle and iPad

That’s it!

Until next time, take care

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Soarent Vision is the provider of nationally accredited Lean Six Sigma Training in Australia under the governance of ….. hang on a minute, that is so boring. Let me start again.

Soarent Vision provides the best Lean Six Sigma Training and Support for Mining and Energy companies in the world today. I gotta call it as I see it.

It’s accredited, it’s not delivered by academics but people who use it, it’s not cheap but fair value for money, it’s designed purposefully for the Mining and Energy sector, and it can easily convert into an investment IF you play your part.

For more information about the training, visit here – http://www.soarent.com.au/lean-six-sigma/academy-process-mastery

by George Lee Sye

A little while ago I had the good fortune to participate in a unique training event – a Lean Business Simulation for the Mining Industry.

The simulation was designed to help line managers and supervisors be more effective in achieving their business goals and doing it in a way they don’t kills themselves in the process. The goal is not to work harder, it’s to work smarter and this simulation helped participants understand just how to do that.

Check this out:

This is a short video of approximately 5:09 minutes in which I spoke to the host of the simulation, Harry Sinko, about the nature of this unique Lean Business for Mining training simulation.

Why does this simulation work so well?

This particular simulation is designed specifically for the mining industry. That alone makes it more relevant to a specific group of people.

It also works incredibly well in connecting business improvement and lean concepts to business execution activities for these reasons.

• It involves people in the mining organisation at the level where training has historically been inadequate – the line manager and supervisor level.
• It gets focus back to the right business level so that improvement takes place where the greatest value can be generated for the organisation.
• It drives a collaborative approach to business improvement with the entire business value stream in mind.
• It is not about an improvement method, it’s about improvement.

Next Steps

I absolutely recommend that you get this training for your line managers and supervisors. You can get that underway by:

• (1) Call our office on 1300 551 294 (Australia only) or 61-7-3377 0824
• (2) Email us at home@soarent.com.au

For more information, visit our website – www.soarent.com.au/simulation

Here’s a quick heads up on the Master Black Belt development program and a few important changes that are taking place:

• 2nd and final 2011 cycle of training
• Capping the number of participants
• The inclusion of new technology

MBB 2011 – 2nd Cycle Begins

One more cycle of MBB training is being held over the final 4 months of 2011.

That final cycle begins in Perth this month (September) with the first change leadership element – the 3-day Change Mastery for Business Leaders.

Let us know ASAP if you are ready to join this cycle of training.

By the way, you do not need to have completed you GB or BB training to participate.

MBB 2012 – Capped Numbers

From 2012 onwards the MBB program will be limited to one cycle only in Australia with a cap of 50 participants per year only.

The impact this training has on individuals is quite remarkable and we are making sure it’s value is never eroded as we continue to grow other areas of our business.

The 2011-2012 training schedule is available HERE – http://www.soarent.com.au/images/stories/pdf/soarent-vision-calendar.pdf

New Technology

New and advanced technology is being included in at least one of the events.

I know …. this leaves you wondering what it is. I won’t give you the details just yet as the product is in it’s final stages of testing.

When it’s ready, you’ll be the first to know.

As always, take care and keep improving

George Lee Sye

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Soarent Vision arguably provides the most advanced and business relevant Master Black Belt training in the world today.

With a unique focus on influence and persuasion concepts, this program integrates perfectly with technical Lean Six Sigma and prepares Master Black Belts to be the most influential and high performance leaders.

Every single one of us is seeking to become more persuasive in how we sell our ideas to others.

And we might add … more influential in how we affect the behaviour of people around us.

Why?

There’s a simple answer ….. the ability to consistently present our ideas to an audience and create widespread motivation to make it happen is what will differentiate us in business and, I think we unconsciously know this, as a parent too.

CPA Week and Symposium Events

Business leaders, owners and investors from a broad range of companies around Australia recently attended the CPA Week (Melbourne, Perth, Sydney) and Energy and Resources Symposium (Broken Hill) presentations delivered by George Lee Sye.

All agreed that the business world has never been more competitive when it comes to getting people’s attention and resources.

They also agree that traditional leadership styles no longer suffice in a world of choice. It was unanimously acknowledged by those who attended that the way we sell our ideas today MUST be more effective than ever before; that or be prepared for disappointment and frustration.

They Have Choice AND They Know It

Dictators like Ghadaffi are finding out the hard way that people in every culture now realise they can choose whether or not they want to do something. More importantly, those people are aware of their collective power to create change.

Even the defence forces of Australia and it’s allies realise that traditional leadership styles work well in a war zone, but not so well in non war environments.

Traditional control based leadership is no longer sufficient!

Think About Your Audience

As George explained to this audience, the forces which drive people’s behaviour are generally changing in Western Society.

Sheer busyness and the volume of work and information we are exposed to causes us to spend much of our time focused on pain driven activities.

• Completing a report with an imminent deadline
• Negotiating with the union to avoid impending strike action
• Discussions with major clients in order to retain their custom after a recent product failure
• Sourcing technology to prevent another data base security breach by hackers
• Assembling the pieces of a major client proposal before the submission date passes

As a general rule, most of the population are more cost focused than value focused. Employees enter an organisation at the cost level. Focus is conditioned to be directed on how much is being spent in what are usually cost centres (as opposed to profit centres).

Events such as the GFC push us further into a cost focused mindset as people do what they can to protect what they have. It also affects the organisational level where the push is constantly towards cost cutting or cost minimisation. At the individual level right now we see an expanding focus on the cost of living.

This conditioning is only one of the causes of disconnect between your pitch of an idea and your audience’s feelings of motivation to take some action.

Three Common Mistakes

George describes three major mistakes that we must address in order to become more effective in selling and pitching our ideas.

#1 – Selling to Self - The greatest mistake is to present the content of a pitch in the way we process it, not the way the audience processes it.

#2 – Fail To Address Objections Up Front - Julie Gillard’s presentation of the Carbon Tax received objections even before she explained what it was and why she was doing it. She threw out her solution and did not address any of the objections first. Smart sales people pitch their ideas in such a way that the normally expected objections have been addressed before they are raised.

#3 – Fight Perception - Rather than focus on changing what people perceive, many leaders spend time trying to change how people perceive. If audience members perceive the world through a ‘glass is half empty’ mindset, the smart leader presents the information to that audience through the same frame of reference. They realise that an idea pitched through the wrong frame  is not perceived in the same way as intended.

Expanding your knowledge and honing your skills

For more information about expanding your knowledge and skills in this area, checkout these two events from Soarent Vision’s Master Black Belt Development Program.

• Advances in Leadership Influence and Persuasion
• The Power of Influence and Persuasion

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Soarent Vision arguably provides the most advanced and business relevant Master Black Belt training in the world today.

With a unique focus on influence and persuasion concepts, this program integrates perfectly with Soarent Vision’s AQF accredited Lean Six Sigma program for Green Belts and Black Belts, and prepares Master Black Belts to be the most influential and high performance leaders on the planet.

by George Lee Sye

How would you like to be able to achieve what most business leaders struggle with?

How would you like to be able to lead a change initiative in such a way that key stakeholders rapidly buy into the idea, it rolls out with widespread momentum, and it sticks over time?

Not for a day or a week, but sticks in such a way that you can turn your back and it remains and thrives!

Then read on.

The greatest challenge many business leaders are faced with is simply maintaining momentum for the change.

The reality is that many leaders continue to repeat the same mistakes, even though they desire a different outcome than that experienced by their predecessors.

Consider these carefully before you roll out your next big change.

1. Failing to establish a common understanding of why the change is important across the organisation.

The task of a change leader is to create a compelling reason for people to change. Knowing the reason why any change is necessary must come before knowing how the change will be achieved. When the reason to change is compelling enough, you have leverage over key stakeholders, and the transition to a new state can be accelerated.

2. Failing to establish a unified or commonly shared sense of direction.

Stakeholders do not know what the desired state looks like, the objective is unclear. The task of change leaders is to generate a broad understanding of the desired outcome, what the future looks like. A clear vision of where the organisation is headed, plays a significant part in aligning efforts and inspiring action by large numbers of people.

3. Failing to build a powerful coalition of key stakeholders with credibility and formal authority who can guide the change.

The task of the change leader is to build a powerful coalition of key players to guide the change. Not only must the leader of an organisation be visibly committed to the change, they must commit the right coalition of the key senior people to guide the change. The right combination of key players will help transcend ‘silos’ and ensure a consistent theme permeates the organisation.

4. Communicating the details and case for change in ways that do not motivate stakeholders.

As we know, everyone is different, and there are very few people like ourselves. An effective change leader recognizes this and communicates in ways that ensure that the the motivational strategies for every person are stimulated in some way.

5. Failing to maintain focus on the initiative at the leadership level – lost momentum through shifting focus.

Continuous and highly visible ‘strategic conversation’ at the top and middle management level ensures that everyone knows it is important to the business and helps concentrate focus. Not only should the change be on the informal discussion agenda, it should be on the formal reporting agenda also.

6. Failing to anchor changes firmly in the way the organisation does business – allowing the old way of doing things to continue.

The transformation will only ‘stick’ when the old way of doing things can no longer exist. In essence it becomes ‘the way we do things around here’.

My advice ….. Don’t make the same mistakes if you want your change to be painless for you and to stick over time.

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Soarent Vision arguably provides the most advanced and business relevant Master Black Belt training in the world today.

With a unique focus on influence and persuasion concepts, this program integrates perfectly with Soarent Vision’s AQF accredited Lean Six Sigma program for Green Belts and Black Belts, and prepares Master Black Belts to be the most influential and high performance leaders on the planet.

By George Lee Sye

The Question

Recently I posed this question to the members of a group of business improvement professionals called Lean Six Sigma Worldwide – ‘Is online LSS training as effective as face-2-face training in getting genuine results in business?’

The following is a summary of the types of responses provided by members of that group.

Responses

GAGANDEEP S. DATTA (INDIA): To me a classroom session is more enriching and productive from learning perspective. It offers the participants to share their experiences while atopic is being taught.  On many occasions I have seen facilitators also take back new learnings, examples, etc. from the class they are teaching.  Also, at times depending on the complexity of the questions raised, facilitators have to resort to parking-lots, go back to seek an answer and share it back with the class.  So, my decision is in favour of classroom sessions.

SUJIT MUKHERJEE (INDIA): Imagine, a task of creating a training material which will contain answers of every possible question that may arise in participant’s mind. That material should also be a “living one” to be flexible enough to assess the level of understanding of the participant and prepare explanation as per that. Best solution to this situation is… find a trainer with knowledge and experience.

CLAIRE FERRIER – MBA, BEcon, LSS MBB (UNITED STATES): I agree that in-class training is certainly the richest and necessary for anyone wishing to lead others in a Six Sigma capacity. That being said I have seen online training work incredibly well for folks working as “green belts” – ie undertaking projects that are being led or mentored by a BB/MBB. The online training provides those people with an ability to understand the background to the approaches being used and, more importantly, a familiarity with the language and tools. It allows those projects to progress much faster as everyone is on the same page from the start and the BB/MBB doesn’t need to spend as much time educating the team on basics, but instead can get on with identifying and solving for the challenges faced. Additionally online training can be a great instant resource for BB/MBBs and Quality Leaders wishing to refresh themselves on certain tools and techniques they may not have used in a while. Therefore I would highly recommend online training as a component of a more comprehensive quality training program.

ANUPAM ROHATGI (INDIA): Are you Joking: On-line Training is same as On-line swimming school.  USP Learn swimming without having to step into Pool.

KOLOS KOMAROMI (HUNGARY): We had on-line Yellow Belt course for all employees and new joiners (mandatory!). It took only one week and keys (a list with correct answers) appeared and after that almost everybody took on-line course and test in 10 minutes by typing anwers from the key-list.  A new employee told me once that after she joined the company she asked her colleague about Yellow Belt course and answer was this: ‘That is just bullshit, here is the list with the answers, use this.’  Those who went through the material by reading all sessions and answering questions by themselves complained that they don’t understand how they could use those tools and methods in their daily routines.

When I took BB position I made a survey about LSS communication within I asked if they found Yellow Belt on-line training usefull and the answers correlated to NO significantly.  After that survey we changed and started live trainings with the same structure but with samples from our company. Though it took half a day to complete the course this way but helped more to involve people to LSS activity and feedbacks were very good.  So my conclusion is on-line training for such complex theme is totally wast of time.

FAIZAN LALLJEE (UNITED KINGDOM): I feel online programme effectiveness depends on the level of interactiveness the programme has. A simple rule I have witnessed…If the concept is complex, then the first preference will be a trainer, face-to face. The next level would be a highly interactive programme equivalent to a trainer..but the cost of development will be very high and the price will not justify it.  Online programmes are very effective if its information sharing.

Conclusion

Based entirely on the feedback provided by group members, it seems that online training is limited in its success in the more complex aspects of Lean Six Sigma education. It’s great as a platform for raising awareness and refreshing, but probably not the most effective way to develop Lean Six Sigma professionals.

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Soarent Vision arguably provides the most advanced and business relevant Master Black Belt training in the world today.

With a unique focus on influence and persuasion concepts, this program integrates perfectly with Soarent Vision’s AQF accredited Lean Six Sigma program for Green Belts and Black Belts, and prepares Master Black Belts to be the most influential and high performance leaders on the planet.

Soarent Vision’s MOST EFFECTIVE LEADER ON THE PLANET (MELP) seminar is confirmed for February 28 to March 1, 2011 in Perth.

http://www.soarent.com.au/most-effective-leader-on-the-planet

This unique event has continued to evolve over the past 5 years.

In its current form it is proving to be a most significant platform for greater business performance in companies such as Rio Tinto and Western Power.

Here are 11 reasons why MELP is so effective as a growth platform for growth companies.

1. Time Expansion – participants leave with a mindset and system that causes them to have more discretionary time, and at the same time achieve more where it matters most
2. Outcome Focused – participants leave with greater focus directed to outcomes and results as a basis for action, rather than just doing things
3. Continual Improvement – it causes participants to unconsciously recognise important areas that are not moving forward and bring them back into focus BEFORE they become a problem
4. Seeking Positive Change – participants are more prepared for, open to and engaged in the change process that all organisations must go through to survive and thrive
5. Breadth of Focus – it causes participants to have greater focus across all of the important elements of their professional AND personal lives
6. Financial Understanding – the importance of positive cash flow and wealth accumulation in both personal and professional environments is reinforced and strategies are provided for achieving these outcomes
7. Less Stress, More Energy – participants will understand how stress is created if they use traditional organising systems in the modern environment, and leave with both the desire and ability to massively minimise stress and increase levels of physical energy
8. Weight Loss – while MELP is not a weight loss program, one of the most significant outcomes of the event is weight loss as participants find themselves less stressed, more focused and with a better understanding of how to best look after their bodies
9. Goal Achievement – it causes participants to be more effective in achieving goals and objectives
10. Leadership – participants leave with a much greater understanding of performance psychology and associated language, they become better coaches of their peers, employees and families as a result
11. Business Growth – participants are given a 4th generation self organization system that is uniquely linked to the business planning system

Read more here …. http://www.soarent.com.au/business-leadership/academy-business-leadership

How To Enrol

Places are still available and you can enrol in a number of ways.

• Contact your business improvement team if you are a Soarent Vision client, or
• Register online here - http://bit.ly/hivL4o

For more information, call our office on (07) 3279 3070.

We look forward to seeing you there.

George Lee Sye Delivering MELP

by George Lee Sye

Every business leader on the planet wants their company or business to grow and maximise its potential to generate sustainable value for all stakeholders; especially its owners.

The way to achieve that is not rocket science. Some people might argue that fact, but here’s the reality. The actions and strategies to engage in for achieving success in business [at any level by the way] can be found on the web, in text books, and through studying and modeling the most successful companies that exist both inside and outside your industry.

Okay, so if that’s true, then what’s the problem?

The business world has evolved quite significantly over the past two decades. The shift we’ve experienced has resulted in six major problems arising that prevent you from realising your potential as a leader, and prevent you from realising your organisation’s potential as a vehicle for creating stakeholder abundance.

Do you really want to make a difference? Do you really want to achieve a level of success in business beyond what most achieve?

If you do, consider these for a moment.

1. Stop Managing Behaviour

The focus of behaviour management practices developed during the long gone industrial age was on controlling people. When the leash of control is placed on people today, the real talent and potential of individual employee is not realised. People want to give their all, but if you ask them, my experience in dealing with thousands of people in public seminars has been they will tell you they are underutilised. People have so much more to give and they know it.

With the choices available to every person in our society and the willingness of people to move from one career path to another, leaders must shift their approach and create the situation where their people are totally committed to outcomes, they participate in innovation and continual improvement, and they have choices about the actions they take to get those outcomes. Controlled people are only engaged to a level of compliance and never unleash their talent to its full extent.

This idea is perfectly encapsulated by Don Argus, retired Chairman of BHP Billiton, when he delivered a speech at the 2009 Leadership Victoria Dinner. He said:

“Marius [Kloppers - CEO of BHP Billiton] quickly realised many organisations smother the potential of their employees under layer upon layer of control and bureaucracy. As a result, their human assets are painfully underused ….

What is really being underused is what might be called peoples’ discretionary effort, that is, performance above and beyond the expected minimum. It is their initiative, creativity, motivation and loyalty. This discretionary effort is the part of a person’s performance that is liberated or shutdown by the way their leaders treat them and the quality of their work environment.”

2. Reactive Psychology Underpins the Culture

Most people today live in reaction. So many demands are placed on them that they only work on their health when it is a problem, or their relationship when it starts to break down, or their wealth when they realise they are going to retire broke. This subconscious pattern of reactivity underpins the culture of a business, and proactive growth will always be difficult to achieve.

We consistently find that business owners and managers shift their focus to succession planning when they resign, or a supervisor focuses on waste elimination when a cost reduction initiative is rolled out, or an employee focuses on their safety only after a work mate is injured.

3. Movement without Direction

Busyness does not produce results, yet far too many people in every organisation are extremely busy but not moving towards any specific outcome of value. The need to have direction permeate to the lowest levels of an organisation has never been greater, or more challenging to achieve.

We have to work hard on breaking this deeply embedded busyness paradigm and focus on being more effective.

4. Compression of Time and Focus

With our maturity in the use of computers and modern technology, we now realise the two big lies told to us so many years ago. Do you remember what those lies were? We were told that technology would (a) give us more time and (b) make the paperless office a reality.

Technology is now compressing people’s time and pre-computer time management methods are no longer relevant. Prioritisation and personal efficiency methods must now being replaced by a new generation in personal leadership techniques that suit the modern world. They must result in time and focus expansion, and work at the appropriate level of detail in an organisation.

5. Misaligned Systems Create Internal Competition

Systems that create internal competition limit the performance of any organisation. When the supply manager is driven to reduce the amount of stock she holds in order to minimise how much capital is tied up, and the production manager is continually frustrated by an inability to get parts from the store to get plant up and running again, the company will never reach its potential.

Does this happen in small enterprise? Of course it does. Without the appropriate knowledge and awareness, a business owner can unwittingly create misalignment in various areas of his or her business.

Our goal now is to align systems more effectively so they create a state of collaboration on how we execute the business plan and grow the business.

6. Low Trust and Accountability, High Bureaucracy

In multiple employee businesses, the first five problems all contribute to a situation where trust and accountability will be low, and leaders get drawn into situation of action and behaviour management.

The utilisation of bureaucratic methods to get things done to some level of satisfaction underpins the way business meetings are conducted, how boss to employee conversations takes place and how upward reporting takes place.

The Six Characteristics of Remarkable Companies

The characteristics of the most remarkable organisations today reflect the successful elimination of these problems.

1. Fully utilised talent and realised potential at the individual level
2. Proactive improvement at work and at the home – a state of genuine work/life balance
3. Alignment of direction and clearly understood purpose across the organisation
4. Expanded time and focus, all supervisors and managers working at higher levels (less detail)
5. Aligned systems that drive collaboration towards similar outcomes and mutually beneficial rewards
6. High trust, high accountability and the elimination of bureaucracy

Can this be achieved in any organisation?

Of course it can – but not without change to the existing paradigms.

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George Lee Sye is a highly successful author, speaker and personal coach to business leaders around the world. He is also founder of Soarent Vision and the Academy of Business Leadership. For more information go to http://www.soarent.com.au/business-leadership/academy-business-leadership

Did you read the March 2010, Australian Financial Review’s Boss Magazine which focused on REINVENTING LEADERSHIP ?  The magazine published an amazing article which was an excerpt of the speech Don Argus delivered at a Leadership Victoria dinner in December 2009.

His key comments around leadership were these:

“In my experience, success goes to those enterprises whose leaders mobilize their people and unleash their competence, creativity and commitment.”

“Those people who are to expand their enterprises were the ones who understood human nature and how to tap the best in people – they understood that the bottom line is ultimately the result of human endeavour.”

“The skill to make things happen comes directly from blending two sides of the leader’s personality: the tough, competitive side that demands winning performance and loves to win; and the softer, compassionate side that is caring and understanding of others.”

In reference to Marius Kloppers, the CEO of BHP BIlliton, he made the following statement:

“Marius quickly realised many organisations smother the potential of their employees under layer upon layer of control and bureaucracy. As a result, their human assets are painfully underused ….

What is really being underused is what might be called “peoples’ discretionary effort”, that is, performance above and beyond the expected minimum. It is their initiative, creativity, motivation and loyalty. This discretionary effort is the part of a person’s performance that is liberated or shutdown by the way their leaders treat them and the quality of their work environment.”

So what is the real message we should take away from this?

Exceptional leadership education, relevant to the needs of the modern business world, must focus on the behavioural elements of an organisation.  It must educate business leaders in new and more effective ways to:

1. Unleash competence, not manage behaviour – soft skills are critical in this pursuit;
2. Enhance individual performance, at home and work, as a foundation to realising bottom line potential – we must acknowledge the inter-dependence between employees personal and professional lives; and
3. Simplify the way leaders execute their business plans and manage their organisations.

Are you ready to step up and make the shift ?

Here’s something that might absolutely astound you … it has been predicted that there will be a leadership shortage in the very near future. A study by Egon Zehnder International predicts a 36 percent shortfall in the number of managers ready for leadership roles by 2015.

Teleo Research also found that the most successful leadership development programs (a) recognised the type of leadership style needed for a company’s culture and (b) aligned leadership development with corporate strategy.

Its amazing that these concepts are now emerging quite strongly in the corporate world, because at Soarent Vision, we have been working on addressing this for almost a decade now. Through Soarent Vision’s Academy of Business Leadership the shift to more influential and persuasive leadership can be addressed as this is the style of leadership the shifting demographics of business is demanding today.

The only question that remains is are we ready to fill the void?