Business Plans Don't Deliver?

The Wall Street Journal asked "Why Don't Business Plans Deliver" in a June 22nd article. In general, they found the state of business plans to be rather dismal. I can't disagree with that especially when we're talking about the business plans of small business. Small businesses tend to rely far too much on platitudes, ambiguities and a tendency to avoid adequately addressing those areas that require real thought and research. But this isn't about business plans. In the "For Further Reading" section Keith R. MacFarland stated, "The strategic planning model is due for a new release, one that enables companies to keep pace with changing environments, quickly create and adapt strategy, and empower people throughout the organization to make effective choices. I couldn't agree more.

The "Strategy Paradox" (Michael E. Raynor) points out that sometimes commitment to the best strategy results in the most abysmal losses. Witness the Sony Betamax and Discman. Good strategy meet with better strategy and once again validated Von Clausewitz's law.

Historically, and to a great extent rightly so, business schools have taught, develop a strategy through a stringent process, be happy with it and ride it to the end. They allowed for once a year tweeking but by and large you were expected to live or die by your strategy until the company's strategic plan became little more than something to look pretty on a shelf.

In order to succeed you have to have a viable strategy that drives the decision process and eliminates or reduces choices that don't fit the company's business model. This implies application of the rigor that befell Sony. So, in order to succeed your strategy needs to be caste in jello so that you can always explore every option and debate every decision. That won't work either since, as they always say, if you don't know where you want to go you're liable to end up anywhere. While you're debating every decision opportunities will pass you by, not to mention your competition.

What's a owner to do? Loose opportunities that fall outside rigorously set boundaries or loose them to a decision process that is still debating where you want to go when the opportunity that will take you there whizzes by? How about peripheral flexibility?

Knowing what tomorrow looks like today is impossible. Randomness and the Black Swan is always a factor. Designate an individual or form a small group (or a consultant) whose job it is to continuously survey all the things that effect strategy and develop contingencies to mitigate risk and prepare for potential changes in the market. In other words:

1. Anticipate the ever evolving future and decide on the most likely scenarios.
2. Formulate responses to the mostly likely scenarios.
3. Determine the delta between the resources needed to meet today's demand and those to meet the future.
4. Identify source to supply the required resources.
5. Continually review, amend and readdress the portfolios of options so they may be activated as necessary.

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People Buy People

The saying go that people buy from people they trust. LinkedIn just ran a pole on the question "If the adage "People buy People" is true then why do people buy you?" All the usual suspect were there for answer options (expertise, personality, etc.)and, in general, expertise leads by a slim margin followed by personality. Experience and character were next and looks hasn't shown up yet. I believe that any answer other than expertise or experience is against current EEO/EEOC laws.My take on the legality issue first popped up in an Organizational Behavior class while chasing an MBA. At the time the buzz word was "Chemistry" but the intent was the same.

Everyone believes that for an organization to work you have to have chemistry among the participants. The financially successful networking industry has grown up around the idea that people by people. Pay your money to BNI or a Chamber function and get to know prospective clients before you try to sell them something. Sounds good to me. I wouldn't want to hire someone that wouldn't get along with their fellow employees and I wouldn't buy a product from someone that I was suspicious of because I didn't know them or their intentions. I don't believe you do either and I don't believe you should have to. Too bad the government doesn't feel the same way.

Aren't practices such as buying from people that share your interests or hiring employees that you have chemistry with blatantly contrary to the Equal Employment Opportunity Act and the Equal Employment Opportunity Commission? I think so and I brought it to the attention of my Organizational Behavior professor in hopes of generating a lively discussion. No such discussion took place you understand, the topic and opinion points out the absolute idiocy of the having government meddle in areas outside those in which they we intended to meddle; namely those enumerated in the constitution.

When it comes right down to it doesn't the question become, "Why should I hire/buy from the handicapped, women, minorities or those with whose sexual orientation I find disagreeable?" If I don't have that chemistry or connection with you can I put off the hiring/buying decision until I find someone more like myself? I think you, me and anyone else should have that right.

Before you march in front of my business chanting homophobe, sexist, and/or racist allow me to clarify my stance. Beyond not wanting government involved I buy into the whole chemistry/connection philosophy. I realize that not hiring based on merit has the possibility of putting me at a competitive disadvantage but I'm only guaranteed life, liberty and the pursuit of happiness not success. Let the market deal with stupidity. If I don't hire a well qualified minority someone else will and I lose. If I won't rent my house out to a woman it may sit empty until I go broke.

Tom Peters, Ron Stone (my aforementioned professor) nor anyone else seems willing to do anything except espouse the "can't we all just get along" philosophy but no one ever wants to discuss what it really means. In the mean time the government owns the banks, and automobile industry and their making a grab for health care. There's talk of another stimulus package and everyone's debt to the Feds went up an approximate $37,000 this year. Forest Gump's mama was right. stupid is as stupid dose.

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Bid Protest As A BD Tool?

If you didn’t get, or haven’t read, last week’s Washington Business Journal you didn’t read about the increase in bid protests. It seems that what was once a big no-no for contractors is now an acceptable way of winning business. In fact, some quick thinking opportunists are already positioning themselves to take advantage of the new protest industry. Seems that a DC-based law firm has a seminar to offer; How To Keep The Deals You Win And Get The Ones You Lose.I believe this is a desperate attempt to first, get business in financially tuff times and second, get unearned business. Unearned business, business that someone else did all the work to win. I have no doubt that there are legitimate protests but turning the process into a BD tool is only a temporary solution. New contracting rules, increased use of A-76 justifications, few contracts, more competition and the potential for a taxpayer revolt against government waste will just exacerbate the problem. So what do you do?

The answer isn’t in trying to face tomorrow with a business as usual attitude or try to survive by protesting other people’s wins. Protect yourself against protest by providing the review team with a proposal that can be used to substantiate and defend the award decision. Differentiate yourself in real, unambiguous terms. What is your unique selling position? What separates you from all the column fodder? If you and all of your employees don’t know the answers that pass the realism test it’s time to go down the pyramid with a chainsaw starting at the top. Transform your organization into one that can be differentiated. Robert Epstein, co-founder of Sybase, said “If you could get all of the people in your organization rowing in the same direction, you could dominate any industry, any market against any competition.”

Don’t be reduced to column fodder, don’t rely on bid protests for survival:
 Instill your values
 Make sure everyone knows how they contribute to corporate health
 Shorten decision time
 Streamline processes and procedures
 Know your business, know your competition and know your customers

Build business because of business.

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Do You Speak Davis Bacon?

Yesterday’s Wall Street Journal (March 16 Page 4) published an article titled Labor-Backed Contract Rules Advance, warning the contracting community that the Obama administration is going to strengthen, or more stringently enforce, the Davis Bacon and Buy America Acts. I know this doesn’t affect many of you now but part way through the second column we get a glimpse of the frightening prospect that “the rules could surface in a variety of bills involving federal funding…”

I know that this is primarily aimed at construction contracts, for now, but this administration has shown a willingness to alter the procurement regulations in ways hostile to the contractor community. In the not too distant future OMB will work with DOD, NASA, GSA, OPM to strengthen contract oversight, end sole source and cost-plus contracts and maximize competition in general.

A-76 justifications will return as a way of life. Agencies will have to consider whether new contracts can be performed by governments at a lower cost. Obama recently stated that contractors may be performing governmental functions. John Gage, president of the American Federation of Government Employees, said "We hope this is the end of the era of privatization …” Current contracts will be reviewed to determine if they can be performed by government personnel.

There is no doubt that there will be nothing usual with business as usual. Now is the time to protect your customer base. I suggest you consider the following:

1. Routinely meet with key customers (technical and contracts) to understand their point of view and develop a friendly relationship; all customers are key, if they’re not quite wasting your time and money on them.

2. Never pass up an opportunity to demonstrate your value to the customer; develop your owned earned value system and use an independent source to verify that you customer recognizes you performance and benefit.

3. Squeeze every non-value added cent and second from your internal processes and procedures.

4. Make it someone’s responsibility to formally or informally lobby congress on issues affecting your business, your markets and your ability to compete. Keep employees informed of issues that may jeopardize their job and ask that they contact their representatives.

5. If your business depends on hard goods determine the non-US content at every indenture level and develop a second or third source list.

I’m sure you’ll think of additional items. The point is that you need to take a more active role in your future.

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Barney Frank and Cow Farts

What happens to the minds of people we elect to public office? This week in particular provides some excellent examples that prove they go mad once they're sworn in. There is more than passing resemblance between Barney Frank, cow farts and illusions of grandeur. We have elected a legislative body that both thinks we stink and we're stupid. Let's look at the track record of our legislators.

In order to protect Harry Reed and his delicate staff from the smell of the great unwashed masses we, the tax payers, built a $71 million air lock for the final total of over $600 million. Everyone complains that Medicare/Medicaid is poorly run and wasteful. we hear that the social security system is in the tank and the Bureau of Indian Affairs has been the punch line jokes for all of my 58 years.

What do all of these things have in common? They are all under the management of the US Congress which, I might add, ran it's cafeteria $25 million in the hole. Now, to expand their less than adequate managerial track record Barney and buddies think they can run the auto industry. Have we forgotten what happened just a few short weeks ago? Fannie and Freddie had to be bailed out at our expense after being broken by the mismanagement by the best the Democrat party has to offer. And don't think the Republicans can be held blameless. All they time we (I am a definite conservative) ran both houses of congress and complained about tax and spend liberals we let the tax rules and regulation grow, did nothing to put an end to the submarket lending legislation and let George Bush spend like Bill Clinton.

Five minutes before bailing out the finance and banking industry Nancy, Harry, Barney, Biden and Obama were telling the nation that all evil stemmed from Bush. Then he sends a flunky before our "Parliament Of Whores" to cry crisis and wal la, George becomes credible.

Now Barney and the boys want to open the public purse and bail out the auto industry. Tax payers making little more than minimum wage are going to subsidize $20/hour auto workers. Our legislators are insane and we the public are worse for allowing it to happen.

Cow farts, oh yea, the tax panic has started. Unemployment is rising and the traditional tax sources are drying up so to continue their spending spree our governmental brain trust (national and local) are going to tax flatulent farm animals. Why stop at the animals? Put an extra tax on bean growers for their contribution to the flatulence crisis and don't forget the flatulence generate at the far ends of Constitution Avenue.

Don't re-elect anyone, for any office, at any time, ever!

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