Conflicting resolve

Posted on April 19, 2012 by John

Whether it’s talking to a family member about whose turn it is to do the dishes, trying to let a work colleague know it’s not ok to use your coffee mug, or trying to close the biggest merger deal of your career, negotiations pervade almost every aspect of communication.

But while having proper negotiating skills helps in one’s personal life, lack of these skills in business can prove sorely detrimental to an organisation’s productivity and profit.

Increasingly, businesses are becoming aware of how important it is to have such a skill set.

Research by the Huthwaite Group (UK) shows that from 2007 – 2008, while the net income of the world’s top 2000 companies declined by over 30%, over the same period, the top 25% of companies adopting a systematic approach to negotiation achieved a staggering net income increase of nearly 43% on average.

The lowest common denominator for this increase was, quite simply, the fact that all of these companies had re-engineered their negotiation capabilities.

Professor Barney Jordaan, Programme Director of the UCT GSB’s Negotiating Skills programme, says that the ability to handle a negotiation properly can provide dividends that many don’t consider.

“Most people consider themselves good negotiators; unfortunately this is rarely true. It’s not just about being charming, or a people’s person. One has to enter a negotiation – any negotiation, prepared. It’s like inviting important guests for dinner: it’s not just about who should be invited and how to create the right ‘mood music’ for the occasion, but, more importantly, what to put on the menu and time and effort spent preparing the meal. Most of our time should be spent in the kitchen before the dinner.

“Do the research; plan what assumptions, strategies and tactics should drive the process for optimum results; what you‘re going to do if there’s no resolution; and, critically, what the ideal agreement should look like. Successful negotiation should not be about ‘winning at all costs’. In fact, coming up with mutually acceptable solutions that keep relationships in good order are more beneficial to businesses in the long run than deals where only one party gets its way,” he says.

Jordaan believes that this is as true for negotiating a business deal, as for any “conflict” situation.

“It’s important that individuals are taught of the negative impact that their own personal behaviour can bring to a situation. Research shows that poorly managed conflict results in excessive employee turnover, low morale, reduced productivity, quality problems, delayed and missed deadlines, increased supervision overheads, increased stress, reduced collaboration, fractured activities, passive/aggressive behaviour. The list goes on and on. At the end of the day, this is only detrimental to an organisation, and an individual.”

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Take the lean route to success

Posted on April 19, 2012 by John

When Japan was struck by a natural disaster earlier this year, Toyota had a 33 percent fall in sales as its production lines took a knock. Recently the company’s president, Akio Toyoda, said production would be at full capacity by this month. The confidence and ability to overcome challenges stem from its well-known philosophy: The Toyota Way.

Hylton Bannon, managing director of Toyota Kenya, who ran his Lean Leadership course at the UCT Graduate School of Business in September, said recently that this approach relied on the continuous improvement of processes, paired with respect for people, no matter what their position within the organisation.

“This leads to a non-hierarchical decision-making landscape, where employees are empowered to solve problems quickly,” said Bannon, adding that Toyota was famous for the scenario where the guy on the shop floor was empowered to make the decision to stop the production line if he thought there was a problem. He mentioned several behaviours leaders should adopt to make this “lean” approach a success in their organisations.

These included:

 Know your people and business

“Know your business and keep on knowing your business,” said Frank Bettger, author of the bestselling How I Raised Myself from Failure to Success in Selling. And second to knowing your business is knowing your people. Through observation or conversation it greatly empowered a leader’s ability to assign tasks, motivate people, harness their talents, team them up, trust them and offer them added responsibility if the leader knew what drove them, kept them happy, where their talents and strengths lay, what their attitudes towards work and life were, and their values.

Insist on honesty

Mary Kay Ash, American businesswoman and founder of Mary Kay Cosmetics, said: “Honesty is the cornerstone of all success, without which confidence and ability to perform shall cease to exist.” It was important that a leader instil this notion throughout the organisation, to build an unshakeable trust between all who work in it.

Set clearly defined goals and priorities

Aristotle said: “First, have a definite, clew; practical ideal; a goal, an objective. Second, have the necessary means to achieve your ends; wisdom, money, materials, and methods. Third, adjust all your means to that end.”

Always follow through

“It was character that got us out of bed, commitment that moved us into action and discipline that enabled us to follow through,” said American motivational speaker and author Zig Ziglar. Often quoted by motivational speakers, FW Nichol said: “When you get right down to the root of the word succeed, you find that it simply means to follow through.”

Reward the doers

In Execution – the Discipline of Getting Things Done, written by Larry Bossidy and Ram Charan, rewarding the doers was highlighted as the most important tool for keeping teams in the organisation motivated to deliver. A leader was execution-centric and acknowledged those who helped him/her to “get things done”.

Expand people’s capabilities

Peter Senge, author of The Fifth Discipline -the Art and Practice of a Learning Organisation, one of the most influential management books of the last century, argued that in a rapidly changing environment, only those who were flexible, adaptive and productive would succeed. It was important to tap into employees’ human urge to learn and not just to survive, and to increase the organisation’s capacity for creativity.

Know yourself

Bossidy and Charan wrote: “Good leaders learn their specific personal strengths and weaknesses, especially in dealing with other people, then build on the strengths and correct the weaknesses.”

This article originally appeared in the Cape Argus, Workplace. View it here.

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Smashing the glass ceiling

Posted on April 18, 2012 by natashaarendorf

The statistics are frightening: In South Africa, more women are unemployed than men; almost 1,5 times more women than men have no formal education; and teenage pregnancy remains a significant threat to young women’s career prospects.

Globally the picture isn’t much better. According to the U.S. Bureau of Statistics, 23% of women achieve tertiary qualifications versus less than 14% of men – and yet, despite these higher qualifications, they are paid on average just 80% of men’s earnings in equivalent positions.

And lastly, women still fill less than 15% of executive officer positions at Fortune 500 companies and make up just 3,6% of CEOs internationally.

But why? Apparently, researchers are increasingly believing, because even where legislation favours equality, women have already internalised the inequality in their environments. In layman’s terms, they don’t believe in themselves enough to seize their leadership opportunities.

If this seems simplistic, take it in the more academic terms of scholars Gail Hackett and Nancy Betz, who argue in their paper A self-efficacy approach to the career development of women: “[L]argely as a result of socialisation experiences, women lack strong expectations of personal efficacy in relationship to many career-related behaviors and, thus, fail to fully realise their capabilities and talents in career pursuits”.

It’s a frightening idea: the thought that the key to change lies in the hands of women who have been conditioned over lifetimes to believe they don’t deserve any better. But there is a solution: companies investing in the empowerment of their female staff, and leading them, through greater self-knowledge, to harness their potential as great leaders.

Change can’t only be tackled on a legislative level, in other words. Organisations have to invest in the personal growth of their female leaders, empowering them at an individual level.

One of the most important aspects of leadership growth is personal enquiry, believes course director Dr Marjolijn Dijksterhuis – and the first step to growing women as leaders is therefore allowing them to investigate their own potential. Their strengths, their weaknesses, why they lead in certain ways, what works well and what doesn’t, and what steps they personally need to take to take their leadership to the next level.

That’s part of the reason the UCT Graduate School of Business has experienced such success with its Women in Leadership courses – which tackle self-awareness as an essential leadership trait.
Fahmeeda Khan, planning and scheduling manager at Chevron, says the self-awareness she since gained on the course was the key to unlocking her own capabilities as a leader. “It liberated me from certain mental models of the role of a woman in a male-dominated workplace,” she says.

Nobuzwe Mbuyisa, planning and pricing manager at Chevron, says leadership education in the all-women environment enabled her to have a “much deeper” learning experience, which “went beyond tools or a simple instruction of ‘this is how we do things’”. The result was a stronger understanding of herself and others, as well as a greater appreciation of her own contributions and those of her team.
And it’s not just for the good of the women themselves, research shows. Organisations who achieve higher scores in gender equality are generally more productive and broadly reflect better leadership traits organisation-wide.

Want to know more? Read the full analysis at:

http://www2.dailymaverick.co.za/article/2012-03-30-analysis-the-glass-ceiling-is-smashable-from-the-inside-out.

* The Women in Leadership course is part of the UCT Graduate School of Business’ Executive Education programme. The first module will run from 11 – 14 June 2012 and the second module from 13 – 15 August 2012. For more information contact NondweDeCaires on 0214061375 or Nondwe.decaires@gsb.uct.ac.za.

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Interpreting the language of finance

Posted on April 16, 2012 by John

Would you ask a person to communicate to someone else a business idea using only the language of Mandarin – which only the instructor can speak? To most, the language of finance might as well be a foreign tongue.

A truth that is internationally understood, yet far too often ignored – businesses are suffering from a lack of financial literacy amongst staff who struggle to understand the basic financial facts of their organisations.

Gene Siciliano, author of the book Finance for Non-Financial Managers, writes on his website: “We are often told that the effort to learn to build and use workable budgets is just too much. For some managers, planning a budget is more frustrating than just hoping the numbers will all work out, if they only sell enough widgets or whatever. But I won’t quote the business failure rates amongst companies in this range.”

Understanding the language of finance can mean the difference between the success or failure of a business; yet barely any effort is put towards this.

Experts say that it this is an unnecessary problem, and simply rectified – the answer lies in training.

Colin Firer, Programme Director of the course Finance for Non-Financial Managers, which runs at the UCT Graduate School of Business (GSB), says that effective financial literacy training for non-finance staff can boost entrepreneurial development, staff innovation, financial prudence, and better decision-making processes amongst managers, all of which will lead to increased profit.

Firer says that the need for non-financial personnel to understand financial statements and financial jargon is often not realised, and the consequences wider reaching than most realise.

“We have seen South Africans becoming aware that financial literacy can make a huge difference to the overall sustainability of their organisations as well as to their personal lives,” he says.

Financial literacy is essential in identifying possible ‘red flags’ in a company’s financial situation. If you want to know why your income statement shows a profit but all you have to show for it is an overdrawn bank account, you need to empower yourself by understanding some basic financial principles.

“If more non-financial personnel had been financially literate in Leisurenet for example, perhaps someone could have raised the red flag before the company collapsed. It is a key requirement for managers in the current market context,” Firer says.

He believes that the language of accounting and finance can be made accessible and easy to understand. “On the Finance for Non-Financial Managers programme, we teach students how to read an organisation’s financial statements and explore their parameters. We give them the tools to analyse cost behaviour and financial performance; participate in creating a financial plan; and they gain the knowledge and confidence needed to contribute to creating value within their organisation.”

It is significant to note that no prior exposure to accounting or finance is necessary in order to benefit from this type of education, says Firer. “It is important that non-financial people from any sector, those responsible for meeting budgets and containing costs, and for anyone wanting to understand the key drivers of performance in organisations are able to understand the language of finance. They will be better able to engage with financial professionals and appreciate their points of view, to examine the financial health of an organisation, identify problems and inefficiencies and contribute towards improving financial performance.

They will better understand the drivers and measurement of costs, and be able to construct a financial plan and establish its financial feasibility.

The first course runs from 20 – 25 May 2012 at the UCT Graduate School of Business. A second course also runs from 15 – 19 October. For more information, contact (021) 406 1323 or SMS “Finance” to 31497. Standard Rates Apply.

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Why I believe in the New Managers Programme

Posted on March 9, 2012 by Gareth

Jenny Carter

I remember when I was first made a manager. I was literally told, “Right, from tomorrow, you’re managing a team.” I had no idea what to do. I didn’t know how to talk to people. I didn’t know how to delegate. I didn’t know how to give feedback. I didn’t know how to motivate. And I just thought: HELP!

And there actually was no help.

I know my experience is one that is shared with just about any new manager in any company.

Most people coming into a management role for the first time don’t know what to do. They are paralysed with apprehension. Their knees buckle under added responsibility. Fear of failure haunts their every decision. They feel isolated and cornered; caught between the heavy demands of business and the needs of their worker friends. And it’s a hard shift to make, the change from getting results alone and motivating a team to achieve results. For some, this shift takes a long time. And this can cause flow problems for companies, no matter their size.

Consider these findings by the Performance Solutions Group, published last year. Only 38% of employees think their leaders have a sincere interest in their well-being. Only 47% think their leaders are trustworthy. Only 42% think their leaders inspire and engage them while 61% question whether their leaders deal effectively with poor performance. Only 42% think senior management encourages development of talent.

A workforce that feels this way about its leaders is no asset. These leaders picked up bad leadership skills along the way and it shows. This is the kind of situation that proves business writer Marcus Buckingham’s statement that ‘people join firms but leave managers’.

New managers are an integral part of an organisation; a strategic part at that. They become middle managers. Some go on to become CEOs. What they learn as new managers is what they carry with them throughout their leadership careers and it is the value they continue to bring to the workplace. Not investing in them is quite blatantly an error of business judgement.

The New Managers Programme at the GSB is a sort of starter pack for management. I wish I could have, in those early days of my career, gone through a course like this. It would have saved me the time it took me to get the idea. And I’ve seen how it’s transformed people; how it’s empowered them. And in turn, I’ve seen them go on to transform their organisations.

I can’t amplify enough my belief in NMP as a catalyst for amazing leadership and management careers.

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Complacency will kill the cat

Posted on March 2, 2012 by natashaarendorf

By Dennis Comninos and Chris van der Hoven

South African businesses are in for a rough ride financially if they fail to accept new economic norms and the unique challenges of the country’s position.

Complacency has always been a dangerous mindset, but it will carry an especially high cost for South Africans who do not recognise their position in the global economic crisis – and who fail to rise to its challenges strategically.

We are about to see electricity costs increase, fuel is about to go up, commodities are getting more expensive and there is little return on investments in banks. So if you are still driving your Lexus, having a great time and are not seriously concerned, that is worrying.

Local businesses must remain aware of their unique position if they are to survive the financial crisis. Owing to the unusual mixture of developed and developing elements in the country, South African businesses are in a challenging position and that needs to be met with understanding. What makes it even more complicated is that while grappling with this contradiction, we are still required to meet the standards of discipline and accuracy demanded in developed economies. And to thrive under such conditions, local businesses should not automatically adopt international practices. They should be looking at managing their projects more strategically from a uniquely South African perspective.

So-called ‘best practices’ from first-world environments have often failed spectacularly: New Coke, the Channel Tunnel, the Concorde, the Challenger, the Apple Newton and many more have all shared similar characteristics, including an over-optimistic assessment of variables that could influence their strategies.

If South African managers want to avoid these pitfalls, they need to keep an open mind and avoid being indoctrinated by international management dogma and apply their strategic understanding to each individual situation. And most importantly, they need to select the projects which will be most strategically beneficial – and ensure those are managed efficiently.

Long-term prosperity rests on being benefit-effective rather than cost-effective. The real issue is benefit realisation. Before every decision, businesses and government bodies should ask themselves what long-term benefits it will hold.

This view can also be applied to employment. If I retrench 200 people, that may make sense from a cost perspective, but might not necessarily be the most beneficial in the long term – I may have lost the one person with the creativity to increase my turnover. So, in terms of managing and hiring staff, surviving a financial crisis is not about cost so much as driving sustainable benefits.

Over-optimism – a cousin to complacency – is the biggest danger of all. In 2007 and 2008, we all anticipated the crisis but hardly anyone approached it strategically. We often ride a wave of euphoria, thinking it cannot happen to us. But look at Greece. That is a shining example of where complacency can lead you.

So don’t let an attitude of entitlement rob you of growth. You cannot demand the biggest and the best if there are not the funds for it – but you can make sure that what you do have works for you.

* Dennis Comninos and Chris van der Hoven are the co-directors of the UCT Graduate School of Business’ course in Strategic Project Management, which runs at the GSB from 16 – 20 April 2012. Both are acclaimed authors, consultants and business academics.

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The artfully upward trajectory – Artists on a business course

Posted on November 30, 2011 by Gareth

This year’s Business Acumen for Artists programme at the GSB is drawing to a close. For many it’s flown past. Now is the time to prepare anxiously for their final business pitch to a panel of judges – to sell their creative businesses. They will have to heavily lean upon what they’ve learned over the past several weeks. Here’s what some are saying of the course thus far…

Nkule Mabaso, Fine Arts student

What did you expect from the course?

I expected this course to give me financial literacy and basic knowledge of how to position myself in the market place and point me in the right direction, give me the right tools to use and the know-how of their use to make money. I have never sold anything in my life and the idea of taking money from people makes me nervous, so I was hoping to hear that I am not doomed. And I should take control of my future financial situation because naivety is not an excuse.

How have you found the course so far?

The course has been relaxing, enlightening and fun because it forces me to deal with the things that cause me anxiety, like, how do I make a living out of my artworks after graduation for instance.

I have recommended this course to my entire class and other students because financial literacy at the most basic level is not part of the fine art curriculum.

Hilda Cronje, Actress and now “budding entrepreneur”

What did you want from the course?

I wanted my paradigms shifted. I was feeling rather stuck and stagnant as a performer and was being challenged with numerous tasks on the producing side of things. When I found out about the course, I jumped at the opportunity because the course outline appealed to where I was in my life at the time.

And, what’s your experience been?

Whoa! It has blown my mind. The opportunities that have come up and the amount of proactive steps I have taken as a performer has really been incredible. I feel completely different. My mindset has changed. I’m challenging myself everyday now to be a force to be reckoned with in my industry. And I allow myself these challenges because I feel empowered by what I’ve learned.

How would you describe what you do?

Before the course, I would have said: Actress. But now, I’m a budding entrepreneur and brand builder. I’m a performing artist but I’ve also diversified my craft. I do voice-overs, create theatre, MC events and I come up with ideas that have the potential to change the world.

Saaid Rahbeeni, illustrator and comic book enthusiast

How has the course been for you so far?

I generally found it pleasantly surprising, not only from the quality of instruction that we got, but also from the peers whom I’ve spoken to during coffee breaks and after class. I think it’s very informative and empowering.

Would you recommend that others do the course?

I certainly would, especially to us creative types. Apart from usually lacking business skills, there is a need for these types to break out of those socially impotent shells they often find themselves in.

How has the course influenced you?

It’s brought me closer to striking a balance between my creative side and a bit of level-headedness.

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Seven essential behaviours for leaders

Posted on October 11, 2011 by Gareth

From disaster earlier this year which saw a 33% fall in sales, Toyota has bounced back with president, Akio Toyoda, announcing recently that production lines will be at full capacity again by November.

This confidence and amazing ability to overcome challenges, has been the defining strength of the company in its 74 year history, and this strength stems from their well-known philosophy: The Toyota Way.

Hylton Bannon, Managing Director, Toyota Kenya Limited, who ran his course on Lean Leadership at the UCT Graduate School of Business in September, said in the media recently that this approach relies on the continuous improvement of processes, paired with respect for people, no matter what their position within the organisation.

“This leads to a non-hierarchical decision-making landscape, where employees are empowered to solve problems quickly,” says Bannon adding that Toyota is famous for the scenario where the guy on the shop floor is empowered to make the decision to stop the production line if he thinks there is a problem.

Bannon mentions several behaviours leaders should adopt to make this “lean” approach a success in their organisations.

Know your people and business

“Know you business and keep on knowing your business,” said Frank Bettger, author of the best selling, How I Raised Myself from Failure to Success in Selling.

And second to knowing your business, is to know your people. Through observation or conversation it greatly empowers a leader’s ability to assign tasks, to motivate people, harness their talents, team them up, trust them, and offer them added responsibility if he/she knows what drives them, keeps them happy, where their talents and strengths lay, what their attitudes towards work and life are, their values.

Insist on honesty

American businesswoman and founder of Mary Kay Cosmetics, Inc, Mary Kay Ash said about honesty: “Honesty is the cornerstone of all success, without which confidence and ability to perform shall cease to exist.” It is important that a leader instil this notion throughout the organisation, to build an unshakeable trust between all who work in it, imbedding a shared responsibility throughout.

Set clearly defined goals and priorities

Ancient Greek philosopher, scientist and physician, Aristotle, said about goal setting and priorities: “First, have a definite, clear practical ideal; a goal, an objective. Second, have the necessary means to achieve your ends; wisdom, money, materials, and methods. Third, adjust all your means to that end.”

Always follow through (Plan Do Check Action)

“It was character that got us out of bed, commitment that moved us into action and discipline that enabled us to follow through,” said American motivational speaker and author, Zig Ziglar.

Often quoted by motivational speakers, FW Nichol said: “When you get right down to the root of the word, succeed, you find that it simply means to follow through.”

Reward the doers

In Execution – the Discipline of Getting Things Done written by Larry Bossidy and Ram Charan, rewarding the doers is highlighted as the most important tool for keeping teams in the organisation motivated to deliver. A leader is execution centric and should acknowledge those who help him/her ‘get things done’.

Expand people’s capabilities

Peter Senge, author of The Fifth Discipline – the Art and Practice of a Learning Organisation, one of the most influential management books of the last century, argued that in a rapidly changing environment only those that are flexible, adaptive and productive will succeed. It is important to tap into employees’ human urge to learn and not just to survive but to increase the organisations capacity for creativity.

Know yourself

Bossidy and Charan, in Execution – the Discipline of Getting Things Done write: “Good leaders learn their specific personal strengths and weaknesses, especially in dealing with other people, then build on the strengths and correct the weaknesses.”

Lean leadership is a philosophy. It is a consistent way of thinking and being in your role as a leader. It is not a tangible recipe for success, neither is it a management project and it certainly is not a once off event. It is a continuous way of being for all people in an organisation, department or team – a never ending search for a better way. In other words it is an environment of teamwork and improvement versus being a set of tools to be implemented. For lean leadership to be sustainable it needs to become a culture.

This article originally appeared in the Cape Argus, Workplace. View it here.

For more information about the Lean Leadership executive education course at the Graduate School of Business contact Mario Pearce on (0)21 406 1268 or visit www.gsb.uct.ac.za/leanleadership.

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Curiosity video sparks international interest

Posted on September 26, 2011 by Gareth

Curiosity is a guiding principle for us here at GSB Exec Ed. We strongly believe that answers don’t change the world, questions do.

We are very happy to find that one of our more recent videos, which was made to capture something of that curiosity philosophy, has been picked up internationally.

Check it out. Keep the curiosity alive. Curious Times on Vimeo

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Rocket fuel for your brand

Posted on August 4, 2011 by Gareth

Recently, the latest Encyclopaedia of Brands & Branding in South Africa landed on my desk. It’s an awesome specimen: heavy, glossy, and quite fascinating. It is a testament to the growing importance of brands and branding for that matter.

Over sixteen years, the encyclopaedia has featured more than two thousand brands, local, global, consumer and corporate. This year, it is a must read. Brilliant articles on nation branding, the importance of colours, the health of a brand, social media stuff, tips, and research, as well as the top brands in the country and abroad.

Looking at the book I started thinking about a conversation I had not long ago with the head of Vega, the school of brand innovation, Gordon Cook.

We spoke about South Africa as a nation brand, and how well it’s doing – the country was recently acknowledged as the continents top brand, valued at $150billion. Cook had interesting views about the president as a brand leader, his ministers as brand managers, and how important it is to sell the brand internally, to the people, so that it strengthens from the inside out. And ultimately what the discussion led to was reputation. And it applies as much to companies as it does to nations, of course. Brands work the same.

Cook believes reputation is more important as a metric than profit, and in the super-connected world, the margins for error are small and getting smaller.

Cook, who will be presenting a unique branding course Strategic Brand Marketing at the UCT Graduate School of Business (GSB) in November, said that branding should be both the king and the queen on the chess board. The king is something to protect at all times. The queen is something to be used to gain advantage in the game, often to win it.

“Branding is the most undervalued part of business but actually it is a strategic imperative,” he said.

He said that there is no business without a brand; there is no bottom-line without a brand; the brand is the top line. He said that people need to think of business differently because consumers are thinking differently and are becoming more and more discriminatory. So, reputation becomes essential.

When talking with him I got the feeling that the man is a thought bomb, sharp, profound, sudden. He is well known in South Africa for helping those who attend his courses to unlearn what they know and throw away their business plan templates. Instead, they learn to think strategically and move away from formulaic ways of building brands.

If anything can help a no-name become Ultramel, or Marmite, or All Gold, it’s Cook’s thinking, and his course.

The Strategic Brand Marketing course runs from 7 to 9 November at the Graduate School of Business. For more information on the course please contact Alison Siebritz on 021-406-1490 or visit www.gsb.uct.ac.za/strategicmarketing.

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