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Feeding Problems & Starving Opportunities?

In recognition of what would have been Peter F. Drucker’s 100th birthday, the Wall Street Journal is rerunning some classic Drucker on Management pieces.  The piece today,  originally published Oct. 21, 1993, is The Five Deadly Business Sins. 

The first 3 sins are related to pricing and profit margins, the 4th is “slaughtering tomorrow's opportunity on the altar of yesterday”, and the fifth is feeding problems and starving opportunities:

“-- The last of the deadly sins is feeding problems and starving opportunities. For many years I have been asking new clients to tell me who their best-performing people are. And then I ask: "What are they assigned to?" Almost without exception, the performers are assigned to problems -- to the old business that is sinking faster than had been forecast; to the old product that is being outflanked by a competitor's new offering; to the old technology -- e.g., analog switches, when the market has already switched to digital. Then I ask: "And who takes care of the opportunities?" Almost invariably, the opportunities are left to fend for themselves.

All one can get by "problem-solving" is damage-containment. Only opportunities produce results and growth. And opportunities are actually every bit as difficult and demanding as problems are. First draw up a list of the opportunities facing the business and make sure that each is adequately staffed (and adequately supported). Only then should you draw up a list of the problems and worry about staffing them.

I suspect that Sears has been doing the opposite -- starving the opportunities and feeding the problems -- in its retail business these past few years. This is also, I suspect, what is being done by the major European companies that have steadily been losing ground on the world market (e.g., Siemens in Germany). The right thing to do has been demonstrated by GE, with its policy to get rid of all businesses -- even profitable ones -- that do not offer long-range growth and the opportunity for the company to be number one or number two world-wide. And then GE places its best-performing people in the opportunity businesses, and pushes and pushes.”

Drucker concludes the piece:

“Everything I have been saying in this article has been known for generations. Everything has been amply proved by decades of experience. There is thus no excuse for managements to indulge in the five deadly sins. They are temptations that must be resisted.”

So, I have to ask, is your IT leadership indulging in the fifth deadly sin?  Is enterprise architecture, typically staffed with top performers, focused purely on problems?  Or, do they resist temptation, by investing some top talent in opportunity?

Fortune: Jim Collins on turning crisis into opportunity

Since I haven't harped/amplified on the critical role of talent in tough times in awhile, I thought I'd highlight a couple of tidbits from a recent Fortune interview with Jim Collins on How Great Companies Turn Crisis into Opportunity.  The sub-head sums it up pretty well "In troubled times a business needs enduring values, the best talent, and an ability to "zoom out" an see past the chaos in front of it."

And yes, I suppose with my mantra of taking a holistic view and then acting pragmatically, I could just as well emphasize the "zoom out" message, but it was the following excerpts on talent that caught my attention. (emphasis is mine)

Fortune: So what did they [enduring companies] do to get through the tough times?

Collins: ...The other thing worth mentioning is that these companies, when they went through the Depression, really understood that it was the caliber of their people that would get them through. If there's a storm on the mountain, more important than the plan are the people you have with you.

...If you go back in history, a few companies used difficult times to bolster their legions of talent. After World War II, all the government labs were shutting down, and engineers were streaming out. Hewlett-Packard was actually going through a layoff. But at the same time, Bill Hewlett and Dave Packard said the greatest opportunity they ever got wasn't technology; it was the opportunity to hire those engineers.

Fortune: But in a time of no credit and slowing demand, how does a company afford to bring people in?

Collins: [Hewlett-Packard's] answer was, How can we afford not to do it? You have to make the wherewithal. If you do not find a way to get those great people, you're not thinking long term enough. In the long-term research into tumultuous environments that Morten and I are doing, we find that great companies manage for the quarter-century...

Fortune: How do you distinguish the truly great talent from the rest?

Collins: The right people don't need to be managed. The moment you feel the need to tightly manage someone, you've made a hiring mistake.

The right people don't think they have a job: They have responsibilities. If I'm a climber, my job is not [just] to belay. My responsibility is that if we get in trouble, I don't let my partner down.

The right people do what they say they will do, which means being really careful about what they say they will do. It's key in difficult times. In difficult environments our results are our responsibility. People who take credit in good times and blame external forces in bad times do not deserve to lead. End of story.

The interview is a good, quick read.  Check it out.

Chief Architect/CTO for Hire, Boston Area

No, not me.  I'm a little busy at the moment.  One of the business-focused technology innovators in my circle is seeking a position in the Boston area.  This person is a big talent, with experience in a variety of industries.  If you have an open search for a Chief Architect or CTO in the Boston area and would like to connect with this candidate, drop me an email -- brenda at elementallinks dot com.