Delegation

Don’t Outsource a Strategic Component of Your Business

May 11, 2023 By Nagesh Belludi Leave a Comment

Warby Parker Business Plan: To disrupt a high-profit margin industry by taking out the intermediary

The prescription eyeglasses retailer Warby Parker was launched by four drinking buddies at the Wharton School of the University of Pennsylvania. The founders intended to disrupt a high-profit margin industry by taking out the intermediary.

Selling prescription eyeglasses online (Warby Parker mostly sells via brick-and-mortar today) would also defy skeptics who preferred to see certain things—shoes, diamond rings, cars—in person and were disinclined to get them online. Warby Parker’s incumbent competitors, 39DollarGlasses.com and EyeBuyDirect.com, had sloppy websites. A crucial part of Warby Parker’s startup plan was to start a user-friendly website where shoppers could upload a photograph of themselves and try on glasses virtually.

At first, the founders outsourced the website, resulting in disastrous consequences. In an interview with Fortune magazine (1-Jun-2019,) co-founder & co-CEO David Gilboa reflected on the pitfalls of outsourcing critical business components:

None of us [the founders] was qualified to build the website, so we solicited proposals and got a handful of bids from agencies. We chose the cheapest option, but a few months in, we realized it was a mistake. Their execution wasn’t what they promised. So we ended up firing them.

Now we develop most of the technology we use in-house to ensure we maintain as much control over the customer experience as possible. We’ve developed our website and both of our apps internally.

Idea for Impact: Don’t outsource what you’re supposed to do best.

Warby Parker Startup Lessons Outsourcing a core function may give you a short-term uplift, but you’ll fail to create the core expertise within your company. That’s necessary to build a sustainable competitive advantage. The vendor just isn’t as invested in your success.

Building know-how internally is more challenging, but it’ll pay off in the long run. Sure, you may need to tap an outsourced hire for specialized expertise that you lack. But concentrate on developing your core functions in-house. In fact, be as micro-managey as possible in the early days.

Leverage outside help for bookkeeping, legal, and everything else that doesn’t generate a competitive advantage.

Do Your Employees Feel Safe Enough to Tell You the Truth?

August 15, 2022 By Nagesh Belludi Leave a Comment

Do Your Employees Feel Safe Enough to Tell You the Truth? Take any corporate scandal or the Challenger and Columbia disasters, and you’ll find lower-ranking voices that tried to be heard within these organizations to prevent or minimize the consequences of the excesses or the accidents.

Some leaders are too isolated from reality and establish an “all’s-good” guise whereby anything other than affirmative becomes an undesirable—unwelcome even—answer to a performance-related question. Such leaders foster a “good-news culture,” where any truth-teller or devil’s advocate is quickly dismissed. Queries such as the cursory “Is everything okay?” elicit information-free, non-answers like “yes” and “great!”

When leaders are disconnected from reality, they become incontestably right. Employees know the rule of the game is to say what’s safe to say. To not tell the truth. To tell the leader just what she wants to hear. Employees would instead go with the flow rather than speak truth to power.

Consequently, business pressures often lead to shortcuts that go overlooked. Risk is normalized. Leaders who cannot tap into the truth get blindsided when the problems blow up because they didn’t nip the problems in the bud. Leaders have only themselves to blame when things go wrong.

Idea for Impact: Insightful leadership isn’t about the privilege of position but the privilege of information flowing upwards. Wise leaders dare to seek information they don’t want to hear. They know how to ask the right questions, look for revealing details, and set up a culture of openness that makes it easy for employees to tell the truth.

Why You Can’t Relax on Your Next Vacation

April 23, 2022 By Nagesh Belludi Leave a Comment

Why You Can't Relax on Your Next Vacation Some managers can’t slow down even on vacation. They keep worrying about their work and won’t come back feeling rested and rejuvenated.

If you feel the added guilt of being away, it may be time for you to look inward and reflect upon your ability to delegate. Don’t bring fear of inadequacy with you on vacation.

Sure, most people responsible for delivering big things find it difficult to be away. Feeling out of control is always stressful. Here’s how to make time off as restful as possible:

Schedule 1-hour check-ins every day.
Manage your team’s expectations and make sure everyone knows what matters you want to be bothered about.
Build-in buffers at both ends. Don’t work right until you leave for the airport and don’t get back to work right off the plane. Schedule an extra day off before you depart and another when you return. Dive back in slowly.

Idea for Impact: Time off should be time off. Get the most out of your time off by unplugging completely.

The Right Way to End a Meeting

October 25, 2021 By Nagesh Belludi Leave a Comment

Many meetings fail to produce tangible results because they lack closure.

An effective coordinator synthesizes everything she’s heard from the participants, incorporates the best of what’s been discussed, and distills all the inputs into a course of action.

A good closure sounds like this: “Let me see if I can go over the main points. Our objective is to achieve [Goal] by [Due Date.] In light of what [Emily] and [Ryan] have said and the concerns that [Mark] has raised, it seems that we agree about [PointX] and [PointY]. We must watch out for [Risk] and incorporate [Possibility] into our contingency plan. Therefore, the consensus seems to that, we proceed with [Decision]. … Have I missed anything? … Is everyone OK with this decision? … Here’s what we’ll do before the next meeting … .”

Without a concrete plan for moving forward, even the best outcomes of a meeting can languish as the initial enthusiasm and commitment fade away.

The foremost goal of a meeting organizer is to steer participants towards a decision and nail down the specific commitments, deadlines, and follow-up timetables.

There’s another key benefit of encouraging everyone’s involvement and piloting a meeting to closure. When each participant feels that their opinion has been fully considered, they are more likely to feel ownership of the group’s decision, even if it’s not the entire outcome they hoped for.

If a meeting can’t come to a decision, it’s reasonable to hold off decision-making. Still, distilling the key points, assigning ‘homework,’ and defining what’s expected of everybody before the next meeting constitutes an effective closure.

Idea for Impact: Closure is, more often than not, the missing link between meetings and impact. Steering a consensus at the end of the meeting gives a sense of closure that participants will find most valuable.

Commitment, Not Compliance

July 12, 2021 By Nagesh Belludi Leave a Comment

For some managers, fear is a dirty little secret … they use it when they are either unwilling or unable to persuade employees to work together to achieve goals.

Stop Leading Through Fear---Gain Commitment, Not Compliance Fear gets results but it does so at a cost. Fear is saps enthusiasm and stifles constructive deliberation.

Step back and work with your employee to determine performance objectives, goals, and priorities. Then, let your employee translate those objectives into tasks and determine how best to perform the task.
Don’t interfere excessively or micromanage. Don’t insist that there’s only “one best way” to do the job. Trust employees to make the right choices to reach the end result.
Don’t be a pushover, either. Be tough where you must be, kind where you can be. Managers can be strong without instilling fear. Be steadfast and unrelenting in your quest for getting results.
Let the employee customize the job to reflect her strengths and weaknesses to the extent possible, without compromising the core contributions expected of her role. Allowing the maximum possible use of your employees’ motivated abilities to achieve targeted results will not only use strengths to the maximum, but also drives intrinsic job satisfaction.
Take the time to get to know each employee’s unique set of talents. Try to dole out the available work to best match your employees’ talents.
Share the glory. Giving others a chance to claim credit is an easy, and effective, way to get results. As Dale Carnegie wrote masterful self-help manual How to Win Friends and Influence People (1936,) be “hearty in your approbation and lavish in your praise.” Learn to overlook small mistakes, but address problems before they escalate.

Idea for Impact: There is potentially no more powerful motivator than the intrinsic satisfaction that an employee could gain from autonomy under structure, and from using one’s motivated talents. Find ways to entice commitment from your employees. Don’t force compliance by virtue of authority.

Micro-Meetings Can Be Very Effective

November 16, 2020 By Nagesh Belludi Leave a Comment

Discussions expand to fill the time allotted (per Parkinson’s Law,) especially when people haven’t prepared for them well.

If your meetings tend to run long and aren’t producing tangible results, consider micro-meetings.

Focus on discussing and deciding on a single problem within, say, 15 minutes. Ask people to do their homework and come thoroughly prepared.

Micro-Meetings Offer Big Benefits Let the critical decision-makers pre-wire one another before the meeting—they can discuss one-on-one the main points and settle any differences of opinion.

Clarify the meeting’s purpose before starting the session. Even if you think everyone knows it, it helps restate the meeting’s objective and sharpen the group’s focus.
Allow people brief statements about their positions and clarifying questions. Take full-fledged discussions offline.
Not every exchange of ideas needs to happen in a meeting. Use shared documents that can be revised and tracked by several people in real-time.
Keep everyone standing. The discomfort of standing for long, especially before lunchtime or at the end of the day, can keep the meetings short and to-the-point.
End well. Conclude the meeting with an action plan and an exact timeframe. State the decisions the group has made and who owns what.

Yes, micro-meetings will seem brusque and hasty. But setting a focused agenda and staying on-topic will keep people paying attention and steer meetings to conclusive decisions.

Many teams use micro-meetings for daily huddles, check-ins, or “scrum meetings.” There’s no good reason why this type of meeting should be availed exclusively for such occurrences.

Making It Happen // Book Summary of Larry Bossidy’s ‘Execution’

November 5, 2020 By Nagesh Belludi Leave a Comment

It’s back-to-basics in Larry Bossidy and Ram Charan’s Execution: The Discipline of Getting Things Done (2002.) Bossidy is a retired business executive (General Electric, AlliedSignal/Honeywell,) and Charan is a distinguished business consultant.

Execution was the best-seller that defined the corporate zeitgeist in America after the dot-com meltdown and the Enron and WorldCom scandals. Catchphrases such as “execution,” “shaping the broad picture,” “straight talk,” and “robust action” became caricatures of how American companies got things done.

Here’s a distillation of the main ideas in Execution:

Ideas are well and good, but how thoroughly you implement them is what “determines success in today’s business world.” Companies are hindered by the gap between what the company’s leaders want to achieve and their ability to achieve it. “The real problem is that execution just doesn’t sound very sexy. It’s the stuff a leader delegates.”
There’s no room for fluffiness if you want to get things done. Straight talk is “live ammo.” “You need robust dialogue to surface the realities of business the kind that can leave people feeling bruised if they take it personally.”
The leader sets the tone and leads the change. A good motto to follow is, “Truth over harmony.” Focus on “raising the right questions, debating them, and finding realistic solutions.” Avoid discourses that are “stilted, politicized, fragmented, and butt-covering.” “Candor helps wipe out the silent lies and pocket vetoes, and it prevents the stalled initiatives and rework that drain energy.”
Informality is critical to candor. Formal and ceremonial conversations and presentations leave little room for debate. Too often, communication is scripted and predetermined. Informality encourages questions and is more likely to promote intuitive and critical thinking.
Strategic, people, and operational processes are the building blocks for execution—and they’re interrelated. “The foundation of changing behavior is linking rewards to performance and making the linkages transparent.”

Recommendation: Skim Larry Bossidy and Ram Charan’s Execution: The Discipline of Getting Things Done (2002.) Most of the book is about setting expectations, holding people accountable, and following through. There’re no instructive case studies. There’re no new magic pills. The substance is genuinely elementary, and the tone self-righteous. You don’t need a book for exhortations like “put the right person in the right job,” “know your people and your business,” “test critical assumptions,” “follow-through,” “deal with non-performers,” and “expand people’s capabilities through coaching.”

How to Help an Employee Who Has Too Many Loops Open at Once

September 3, 2020 By Nagesh Belludi Leave a Comment

The notion of ‘open loops’ is analogous to an internet browser with too many tabs open all together. Forcing a computer to do too much at the same time will overburden the computer’s CPU and memory. That causes lower processing speeds, even causing the browser to crash.

The same thing can happen to your employees in the workplace. Open loops add up to ongoing and unfinished mental processes—from a report that’s past due to a creative idea that has lingered on without being put into practice.

How to Help an Overloaded Employee Who Has Too Many Loops Open at Once

Having too many open loops restrains the time and attention employees give to specific responsibilities, stagnates performance, and breaks the team’s momentum.

Here are three ways you can help your employees handle their workload.

Encourage your employees to work through these open loops and close them one by one. Evoke the two-minute rule: a task shouldn’t be added to a to-do list if it can be done within two minutes.
Sit down with your employees, encourage them to make a list of their open loops, and prioritize the more significant open loops over the less important ones. Suggest the so-called Eisenhower Decision Matrix, named after President Dwight D. Eisenhower, who famously said, “The urgent are not important, and the important are never urgent.”
Buy them a copy of David Allen’s Getting Things Done (2001.) This best-selling time-management guidebook can show your employees how to examine all their open loops and “stuff” in the office—information, ideas, emails, projects, expectations, and even people—into a sensible, manageable system. Once organized, your employees can relentlessly “process” and sort out all open loops to conclusion. The resulting streamlined information flow can keep employees free from persistent worrying.

Never Outsource a Key Capability

August 17, 2020 By Nagesh Belludi Leave a Comment

In 2003, Domino’s Pizza started requiring its franchisees to adopt the company’s own point-of-sale system (POS) system, internally called PULSE, instead of letting franchisees choose third party POS systems that could integrate with Domino’s IT systems.

That strategy gave the company the ability to seamlessly control the entire ordering process and add functionalities such as online- and mobile-ordering, voice ordering, and contactless payments.

Domino's Pizza Technology for Consistent Customer Experience

At the same time, Domino’s clever marketing convinced consumers that it has the snappiest ordering process among all the pizza vendors.

How Domino’s Pizza reinvented itself

In 2009, Domino’s changed its pizza recipe and admitted that its previous version was awful in a series of brilliant commercials that featured the tagline, “We’re Sorry for Sucking.” Executives even read out vicious customer comments on camera resembling the Jimmy Kimmel ‘Mean Tweets’ show.

Domino’s (which is, incidentally, headquartered a mile from my home in Ann Arbor, Michigan) used its PULSE POS system as the centerpiece of a technology ecosystem that has helped it flourish as an “an e-commerce company that sells pizza.”

Domino's Pizza Turnaround Case Study Digital sales skyrocketed as the company tapped into greater demand for convenience, and Domino’s carved a bigger slice of home delivery and food pickup market. Morningstar’s R.J. Hottovy notes that Domino’s laser-sharp focus on improving online ordering has paid off leaps and bounds:

Technology plays an important role in Domino’s efforts to develop and enhance its brand image. Domino’s global technology platform includes a digital loyalty program with a rewards system, electronic customer profiling, geo-tracking of pizzas being delivered to customer homes, and customer geo-tracking to have carryout pizzas ready just as they enter the store. Other innovations include high-speed ovens (which reduced cooking time to four minutes) and Pulse (a unified point-of-sale system,) which have re-engineered fulfillment processes to be best-in-class. Pulse integrates all orders (regardless of origin) into a seamless interface that provides detailed monitoring of every aspect of the ordering, cooking, fulfillment, and delivery processes, which reduces bottlenecks and minimizes downtimes, enabling Domino’s to offer faster delivery times than competitors.

By owning the entire customer experience, Domino’s has been able to provide a consistent experience for customers irrespective of how they order, use data to create value for customers, and iterate quickly. No wonder, then, that Domino’s share price is up 28-fold since its 2004 IPO!

Idea for Impact: Don’t outsource what you’re supposed to do best.

Smart companies understand that outsourcing can result in loss of control over key capabilities. That can impede the company’s ability to improve its efficiency in serving customers or introduce changes in response to shifts in the marketplace.

How Can You Contribute?

June 22, 2020 By Nagesh Belludi Leave a Comment

The celebrated management guru Peter Drucker urged folks to replace the pursuit of success with the pursuit of contribution. To him, the existential question was not, “How can I achieve what’s been asked of me?” but “What can I contribute?”

Drucker wrote in his bestselling The Effective Executive (1967; my summary,)

The great majority of executives tend to focus downward. They are occupied with efforts rather than with results. They worry over what the organization and their superiors “owe” them and should do for them. And they are conscious above all of the authority they “should have.” As a result, they render themselves ineffectual. The effective executive focuses on contribution. He looks up from his work and outward toward goals. He asks: “What can I contribute that will significantly affect the performance and the results of the institution I serve?” His stress is on responsibility.

The focus on contribution is the key to effectiveness: in a person’s own work—its content, its level, its standards, and its impacts; in his relations with others—his superiors, his associates, his subordinates; in his use of the tools of the executive such as meetings or reports. The focus on contribution turns the executive’s attention away from his own specialty, his own narrow skills, his own department, and toward the performance of the whole. It turns his attention to the outside, the only place where there are results.

Peter Drucker: Focus on Contribution - How Can You Contribute? Pursuing contribution versus—or as well as—success pivots you away from self-focus and helps engage in meaningful relationships with your employees, peers, and managers.

In his celebrated article on “Managing Oneself” in the January 2005 issue of Harvard Business Review, Drucker clarified,

Throughout history, the great majority of people never had to ask the question, What should I contribute? They were told what to contribute, and their tasks were dictated either by the work itself—as it was for the peasant or artisan—or by a master or a mistress—as it was for domestic servants.

There is no return to the old answer of doing what you are told or assigned to do. Knowledge workers in particular have to learn to ask a question that has not been asked before: What should my contribution be? To answer it, they must address three distinct elements: What does the situation require? Given my strengths, my way of performing, and my values, how can I make the greatest contribution to what needs to be done? And finally, What results have to be achieved to make a difference?

Idea for Impact: Take Responsibility for Your Contribution

Focusing on contribution instead of efforts is empowering because it compels you to think through the results you need to deliver to make a difference and identify new skills to develop. “People in general, and knowledge workers in particular, grow according to the demands they make on themselves,” as Drucker remarked in The Effective Executive.

Delegation

Idea for Impact: Don’t outsource what you’re supposed to do best.

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How Domino’s Pizza reinvented itself

Idea for Impact: Don’t outsource what you’re supposed to do best.

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Idea for Impact: Take Responsibility for Your Contribution

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