Looking Within While Looking Without

About 3 years ago I took a sabbatical from Cobalt Group to be the Executive Director for a park and recreation district that employed about 60 full and part time staff. It was a fantastic job and a great experience.

When I started I discovered that the district had been running at a loss for the previous six years. Even though the district was supported by an operations and maintenance tax levy (about 58% of total revenue), I knew that I had to treat it like a business and start making it profitable. My first approach was to start looking within and control the controllable. In my experience, the easiest thing to control is the expense side of the P&L. The harder thing to do is be looking without because revenue is harder to control than expenses because, while no business can make customers come in, they can have more control over their operating costs. So I began looking at what the expenses were and where savings could be made.

The first thing I did was to determine what the cost of operating the district was. This had not apparently been done before but I figured out what it cost to open the doors every day. From there I looked at all the items on the expense side of the P&L and began working with my senior staff to understand what those expenses were and what they really needed to be. We looked at labor costs, vendor contracts, regulatory expenses, maintenance, utilities, cost of goods sold, and every other expense category to get an idea of where we could shave those costs.

Some tough decisions were made but I made sure that my staff understood what we were doing and why we were doing it. They knew their departments better than I did and by making them part of the process they now had ownership in the outcome. We met frequently to see how costs were tracking, and made adjustments where we felt it was warranted.

The staff performed wonderfully and at the end of my first full fiscal year, with only one fee increase made to only one program, we ended up with slightly over $20K in profit. This was the first profitable year the district had achieved in six years. We kept up the cost controls and at the end of my second full fiscal year we had a profit slightly over $50K. This occurred because my entire staff understood what we were trying to do, they were invested in the outcome, and they worked diligently to make it happen.

Getting back to profitability provided many lessons learned that I will share in future blogs. But going back to the basics was key. For any business, if you want a better chance at increasing your margin, start where you can have the most control – expenses. But don’t neglect the revenue side of the equation either. Start Looking Within While Looking Without.

The Cobalt Group can help you with this. Ask us how.

We want to hear what you think. Leave a comment and let’s start a discussion.

Copyright © 2018 The Cobalt Group LLC. All rights reserved.

Are We Going to Abilene?

We've all been there. We are in a discussion about something and we sense that the path we’re taking is the wrong direction. Either through what we believe the evidence to be or by instinct, we know that the decision being made is going to be a bad decision. But then, we just sit there and say nothing.

Right after I received my Wings of Gold in the Navy I was sent to their Leadership, Management, Education, and Training (LMET) course. This was the first course on leadership and management that I received in the Navy and it was a good course. I was a young Ensign and had already been a supervisor before joining the Navy. In one of the sessions we were discussing what I mentioned in the first paragraph and they had us watch a short movie called ‘The Road to Abilene’. As I recall, it was about a group of people that were sitting around, bored, on a hot Friday or Saturday afternoon trying to decide what to do when someone suggests that they take a trip to Abilene (about an hour away) for dinner. No one really protests but no one really wants to spend the hour on a hot and dusty car trip. When they get to the cafe, the food is just as bad as the drive. Then they drive back home and are exhausted.

One of them says, "It was a great trip, wasn't it?" The others now said they would rather have stayed home but went along with it since the everyone else seemed so eager. Then they all sit around and try to figure out why it was that they together decided to take a trip which none of them wanted. They each would have preferred to stay at home, but did not admit to it when they had the chance to say so.

I have experienced this in the Navy and in my corporate career. Someone comes up with what they think is a good idea and the rest of us aren't really sure, or know we shouldn't, but we all just go with it. No one wants to speak up and be the voice of reason or dissent, and challenge the group think or momentum that the idea is beginning to build. There have been times when I was in decision meetings on what tactic to use to destroy a target, or what opportunities to pursue, and I knew inherently that the decisions being made were bad but I didn’t speak up. In the Navy some of those could have life or death consequences, while the corporate consequence was usually fiduciary. Regardless, I should have spoken up. Why didn’t I?

It is hard for a lot of us to say no in these circumstances. Perhaps we aren’t sure of our reasoning. Perhaps we fear the group pressure that would follow. Maybe we fear not being seen as a team player. The reality is most people want to be liked and perceived as part of the team so at times we seem to agree to things even if we think the decision is bad. Whatever the psychology or the reason is, the fact is that by agreeing to going down a path that is undoubtedly wrong is detrimental to you, your team and your organization. And they deserve better from you.

It is not always easy but if something isn't right about the direction being taken, or if it doesn’t seem right, speak up. There are ways to do it tactfully that won’t make you seem like a counterproductive member of the team. You just might be surprised at how many others feet the same way but chose, for whatever reason, not to rock the boat. And the last thing you want to do is waste time and resources on a venture that is likely doomed to fail.

So if you have a doubt, be the one to speak up and ask, “Are we going to Abilene?”

We want to hear what you think. Leave a comment and let’s start a discussion.

Copyright © 2014 The Cobalt Group, LLC. All rights reserved.

Indecision is a Terrible Thing. Or is it? I Can’t Decide.

Following up my post on the 3 Ds of great leadership, I wanted to delve a bit more into the first of the the 3 Ds – Decide.

One of the things I have seen in my corporate career that has baffled and frustrated me far too often is when leadership can’t or won’t make a decision. I know you’ve seen it too. 

I rarely saw this in my Navy career. 

But in the corporate world, that was one of the first things I noticed – leaders afraid to make a decision. So, knowing that I came from a more regimented culture, I asked around to find out why.

I was told many things: 

People’s jobs are on the line. 

Or, politically, that person does not want to make the decision to go in a certain direction. 

They are afraid to disagree with someone. 

They are afraid of the potential dangers of a certain decision. And the list goes on. 

I was astonished. I thought that making a decision was, in part, the job of a leader. 

I can tell you that in the Navy there was never situation like ‘Oh, I don’t know, Admiral, I just don’t know enough about the target area to decide on the best way to attack it’. 

That would have gone over like a submarine with screen doors.

Leaders are supposed to make decisions. That's why they were put in a leadership role.

They make decisions on how to grow their business, what their business strategies are, whom to hire, whom to fire, whom to promote, which companies to partner with, which opportunities to pursue, etc. 

But as I said, far too often I have seen decision paralysis seemingly be the norm, and I’ve seen it at all levels of the food chain. This is one of the areas, as an executive/leadership coach, that I work with my clients about.

If you’re a leader of anything, you have to make decisions. 

Sometimes those decisions may be that there is not enough information to make a final decision. 

Then make the decision to gather the required information and set a time to get back together and factor that new information into a – Decision.

Here’s a simplified way to go about doing this. 

Define the issue that needs a decision. 

List your options. 

Discuss those options and take the inputs from your team. Make them part of the process. 

You probably didn’t get to the position of leadership because you were stupid, so use your intelligence and that of the team that surrounds you. 

Now weigh the possible outcomes. All decisions will have consequences good and/or bad. 

Once you have done all of this, make the decision you feel is best. 

Then go with it.

Not every decision will be right. You will make incorrect decisions and your people will too. 

But as leaders, you have to get away from the Zero Defect mentality that seems so pervasive. 

You know, one mistake and you’re gone! I've seen that happen all too many times. And good people were sacrificed at the altar of perfection.

I’ve learned more from the mistakes I’ve made than the first-try successes. 

Let your people learn from them too. I am not talking about gross or willful negligence, but we can all learn from honest mistakes.

So make a decision and monitor your progress. If the information you have changes, then adjust course where/when necessary.

Don’t let indecision paralyze you or your business. 

There is an axiom that was true in the military and it is just as true in the corporate world….

Lead, follow or get out of the way. But make a decision!

For more information about how The Cobalt Group can help you with leadership development, or any business or leadership challenges you are facing, Contact us.

We want to hear what you think. Leave a comment and let’s start a discussion.

Copyright © 2014 The Cobalt Group, LLC. All rights reserved.

The 3 Ds of Great Leadership

Leadership is such a rich and vast topic. There are countless books and experts out there that will tell you what good leadership is. 

It is hard to put a single quote or sound byte that encompasses good leadership.

I want to take you beyond good leadership and talk about great leadership.

I've seen poor leaders, good leaders, and great leaders. I've learned from them all. 

But the great ones shared a common set of traits. They understood that great leadership, in part, can be boiled down to 3 Ds. 

Decide. Delegate. Disappear. 

I learned this concept many years ago as a young junior officer in the Navy. It set the framework for my approach to leadership since. 

Although this is a very rich topic, I will do my best to keep it within the constraints I established for the length of my blogs, even though I feel that it warrants much more space. 

So here we go...

Decide. Your job as a leaders is to make a decision and move forward with it. 

If you have to get something delivered to the corner of 4^th and Main, look to the people in your organization that know the streets. Take their inputs on which roads are the best to travel. 

Some may be one way streets and others may have construction happening. The point here is that getting the input from those that actually know the lay of the land is important. 

When people are given a voice in the decision making process they will take more ownership of the outcome. And when they feel like they have more of a stake in the outcome, they are more motivated to see it succeed. 

So after you have taken all their inputs, make the decision on what the path will be. It may be that you chose your own route, their suggested route, or a blend of the two.

And now YOU, the leader, will own that decision. If the delivery is successful, you give praise to your people. 

If it fails, YOU take ownership. 

After all, YOU made the final decision on the route chosen.

Next, you...

Delegate. Once a decision has been made, delegate the responsibilities to those that are actually going to accomplish the tasks. 

In our scenario, that means letting the people that are going to make that delivery do their jobs. Define the parameters under which they are to operate, then trust them to work within those confines. 

If you trusted them enough to take their input when deciding how to best reach your destination, trust them to do their jobs the right way. 

They want to know that you have confidence in them. They want to know you trust them to do what you asked them to do.

And then you…..

Disappear. This doesn't mean go back to your office and close the door. It merely means that you now let them do what you have asked them to do. 

If you have clearly defined the parameters within which they should operate, and have delegated the responsibilities to them, stay out of their way. 

Don’t micro-manage them. 

Now, what that means to one person may be different than it does to another. 

What this is to me is simply…don’t be a helicopter leader that is always hovering above them. Stay engaged, offer assistance and support, get status updates, but don’t be in the way. 

Your people are your experts. 

Trust them to do their jobs and trust them to come to you when they need you. 

Train them to do that. You will have a much better and more successful organization if you do.

This frees you up to do what you are there to do, LEAD!

As I said at the beginning, this is a topic that deserves much more time and space than I allot for my blogs. It could actually fill books, I am sure. 

So as you look to improve your leadership abilities, and thereby set the example for those you are leading, remember the 3 Ds and live them.

Decide. Delegate. Disappear.

For more information about how The Cobalt Group can help you with leadership development, or any other any business or leadership challenges you are facing, Contact us.

We want to hear what you think. Leave a comment and let’s start a discussion.

Copyright © 2013 The Cobalt Group, LLC. All rights reserved.