Friday, September 23, 2016

Flip charts and duck tape - management tools

The 1980's was a time when  various management theories surfaced, were eagerly adopted and  then often quickly abandoned. It was a time when management was being re-invented as a science to which formulae could be applied, rather than the amateur style or leadership cult that was considered the normal state of affairs.

On a Sunday evening, in late January 1988 I - think, we were leaving a grim looking hotel near to New York's Kennedy Airport. A collection of Diet Coke cans and  discarded Danish pastries and littered the American end of the room, empty tea cups the British end. The flock wall paper bore the scars caused by the removal of 65 sheets of flip chart paper that had been taped to the wall all round the room. It was the end of a M.A.P.S. session. The first in which I  had participated. The management concept of a MAPS  session as I  recall some 30 years later, was quite simple. The managers were gathered together and invited to say what issues were stopping them doing their job properly. These could be complex things or simple things.  Managers were lulled into dropping their guard in volunteering their most private concerns as to what was holding them back. The subjects of concern were written on a flip-chart page. For example -"Don't have a secretary" or more vaguely "Don't have enough time" and this continued until approximately 65 sheets were completed. Then the real fun began. The flip chart was turned back to the first page and the person who had raised the issue had to  explain what this meant. The team chipped in with various ideas until choosing one of these as the answer. This solution  was written below the issue statement, then one lucky person was appointed to carry out the agreed solution. Another was delegated to ensure the tasks were actioned.Where no solution was agreed, the problem was parked and labelled 'back-in-the-box'. But and it was a big but, out of 65 issues, problems or challenges in whatever management speak was in vogue, there were two written by the president himself that were there real show stoppers. He wrote his first problem, 'the Americans don't trust the Brits' and the mirror version, 'the Brits don't trust the Americans'. I  don't recall what the comments were, if indeed there were any, but a glance round the room told its own story. The Americans turned up dressed in casual clothes that would work well at a barbecue, the English wore suits and ties.

Until then I  had never heard of MAPS. Apparently the format had been devised by Egon Ronay's brother. Egon Ronay was a renowned food critic, his brother seemed to favour black and had the air or demeanour of a funeral director. In the short time I had been with my new employer I  had turned over  a stone or two and exposed some surprises. My second week with the firm was to visit  the America arm of the company located in Los Angeles. The purpose of this visit being to review a number of new product that had been developed by the LA team for global sales. Not long before my appointment the company had consolidated the American and British companies under the control of the man previously running the American business and as part of this set up the R&D was also based in LA. I was accompanied on the visit with a product manager from my inherited UK  marketing team. He had briefed me that all was not well with the new product development programme. Towards the end of the week it was becoming apparent that this was a case of the 'emperor's new clothes'.  It was largely all smoke and mirrors. The R&D team were clearly under pressure to deliver this ambitious programme of new products, there was an air of anxiety emanating from the team which probably wasn't helped by a pair of Brits poking around their labs. And here was  the concern. A number of products were basically merely models lacking working parts, such as the electronics. Demonstrations of systems relied on various 'behind the scenes' trickery to illustrate the working product. When reading the story of Enron all these years later, there is a description of how an elaborate demonstration had been laid on for Wall Street investment analysts of a similar pretence to display their new found expertise in broadband. The situation in LA had been of the same ilk, even going as far as a demo to a team from NASA.

The MAPS  session was a direct result of my report on the status of the R & D programme. The next blog will explain the back story here.  I just wish, all these years later that I  had an insight into that Enron management style. 

Wednesday, September 14, 2016

The smartest guys in the room

When things seem to good to be true, then may be they aren't true.

But when smart guys tell you something is so, it can be tempting to believe. After all they are smarter than you are, aren't they? So what's all this about? Some readers will have noted the title and realised I am referring to Enron. Formed in 1985 Enron's stock was to take a meteoric rise to a capitalisation of 60 billion dollars and the company became the most admired, innovative large company in America. It was applauded in the Forbes Most admired Companies survey, management schools used it to produce case studies, it was 6th placed in the Fortune Global 500, yet by 2002 it had crashed and burned and by 2007 it was gone.

It was only recently reading the book I  realised that I  had gone through a similar experience in one job, but at a far more modest level. Every chapter in the Enron story revealed fresh evidence that the man driving this company I had joined had probably taken management classes based on the flawed Enron inspired innovations and case studies model. So how did all this happen?

Back in the mid 1980s I  suddenly found myself 'head-hunted' for a senior marketing role in an old established British company that was something of an institution in its niche market. It was a small company, a market leader in its sector ... well more of an institution really, whereas the company I  left was large and dominated a much bigger market sector. I was interviewed in offices in Covent Garden late in 1985 and after a few days the call came for a final interview in New York, but due to my lack of a visa, the meeting was moved to Toronto. Suddenly here was the entree to a new jet set business existence, a world already far removed from my present job. The interview was hardly rigorous. I  managed to remove the cap from a Coke bottle that had apparently defeated the efforts of the company president, meanwhile he read my CV with total amazement, occasionally shaking his head from time to time before asking if I  had written it myself. He expressed total disbelief that anyone other than a specialist in crafting CVs could have produce such a document. It seems that my chronological recording of my career to date had amazed and delighted him. I  gathered I  was hired. We had dinner in a massive airport hotel restaurant  which boasted a huge log fire surrounded by glass panels which seemed impressive to me at that time. As the UK MD  who had accompanied me on this whirlwind trip and I climbed back on the BA 747, an air stewardess recognised us from the flight out and asked ironically if we had enjoyed the 'day trip'. At Heathrow reality returned, Greenline bus to Watford Junction, the train home on which I  met an old school friend who held a mysterious role at the MoD which was something to do with espionage, then back at my desk the next day after just a day off.

At the beginning of January I  took up my new post. I had already met the marketing team when I  visited the operation after my appointment. But by the end of January the information I  had discovered and the response to my reporting this had launched a chain of events that seemed incredible then and only now viewed in the context of the Enron story can be explained in my own mind.

... to be continued