Saturday, February 28, 2009

Percussive Sublimaton and Lateral Arabesque

These are terms, usually recognized as first appearing in The Peter Principle and are generally defined as follows:

1. Percussive Sublimation: promotion to a position only apparently further up the hierarchy.
2. Lateral Arabesque: A new position with a longer title but no hike in rank or pay.

What is meant by Percussive in "Percussive Sublimation" and Arabesque in "Lateral Arabesque" ? I am not totally sure and I do think that Larry Peter was either when he wrote the book, but here is what I think about each. You tell me if they do not apply .

Percussive Sublimation happens all the time. A person (very commonly a relative in a family owned business) is apparently promoted but they really do not change jobs but become higher up. Although this can be good if you are grooming someone for more responsibility, in family businesses, if you are not careful it will be taken by others as just a way to give the person a bigger title and more money . Generally, the term comes from a sudden and not needed promotion and it fools no one. I think that sometimes top managers think they are fooling all the people in the company but no one is fooled or they just believe they need to move the person up to keep them. Percussive Sublimation, besides being sudden, usually carries the message that it is being done on "the sly" or "for no apparent reason". Like most things, it could be good in a case where the change occurs so a person can be evaluated at a higher level where it is in preparation for another person on the way up. Usually it isn't good though. It is just a way to not deal with reality.

Lateral Arabesque is usually when a company does not want to do the right thing. A position is created and the person moved off to the side so as not to have to fire or retrain them. In most businesses it is a person who has been there a long time and has outlived their usefulness in the job because they have not kept up with technology or have outgrown their knowledge needed for the job. Or, in family owned businesses, they will not or cannot do their job or work with others, so they are moved off to a place where their either do not interact or cannot interact. This too is usually a "chicken" approach by managers with no guts to do the right thing. Even worse, in a family business, it moves the problem and does not eliminate it. However, this too can be good. If there is a person who has a wealth of knowledge and experience and needs to be moved away to allow for a younger or more savvy person, promote him to a top job of a consultative nature until they retire or leave. I have seen it work well in both small and family owned businesses provided the business can afford it. Do not do it if you cannot financially afford it.

Read the book. The Peter Principle by Laurence Peter. It is short and very satirical but very informative and contains information that is timeless.

What do you think?

Wednesday, February 25, 2009

Level of Incompetence

This descriptive item by Laurence Peter in The Peter Principle describes a laterally moving a person who has reached their level of incompetence. The entire book is basically given to highlighting an effect that occurs in all businesses but especially in larger conglomerates whereby people reach their level of incompetence. However it occurs far too often in small and family owned businesses.

So, what is it? Let's say that at your company you have a salesperson doing a great job. They are outstanding, probably the sales leader and loved by your customers. A Sales Manager (or Product Manager or Director of Sales or Marketing Manager, etc.). So, you look no further. This top notch sales person has done an great job, they should be promoted into the opening. Right? Not necessarily. How are his management skills or training? How are his people skills? How well does he interact with all the other departments especially supervision and management of those departments? Success selling is not success managing.

We will describe in more detail some specific ideas from the book, but the basic principle is that just because a person is doing well in one job, it does not mean they will do well in another or in management. That is why, if you are a small or family owned business, management talent should be developed or hired not assumed just because they have done well in one position. If you are training an heir apparent, certainly let him function in all departments. That is good training, but do not assume that they are ready to manage until you have seen them in action.

Many companies, once a person has reached a level at which they are performing well, continue to promote them and then wonder why it did not workout and a previously great employee now must be demoted or terminated because they had reached their level of incompetence. So many companies do this because it is easy. Just promote a person they know. Or, it maintains their philosophy of promoting from within. That is a great idea but make sure the person is management material first before making the commitment. It will save everyone a lot of grief.

What do you think?

Monday, February 23, 2009

Basic Peter Principle

The overall subject of the book The Peter Principle is that companies, by various means, allow people to reach their level of incompetence. It is so true in small and family owned businesses. Rather than deal with a person and do the right thing, many times they will move them into a position for which they are not qualified, move them into a position laterally that is beyond their capabilities or beneath their capabilities or even promote them (usually family) under the guise of "training" or giving them another chance.

What really needs to be done is that they need to be told to improve (receive a not so good review) or given specific improvement items or maybe even termination. Another thing that might need to happen is training/education for real. Not a conjured up seminar that deals in such high level abstractions that it is no earthly good, but training to specifically deal with the problems that keep the person from being what they need to be. Training/Education seldom really works because what management is looking for is to "fix" the person and the person may not be "fixable". Surprisingly, I have seen it work though. Especially for an ill-educated or non-educated family member. One of my clients had 3 sons one of which was in the business. One of the sons was incompetent, irresponsible and a liar and thief. The Father recognized it and would not allow that Son in the business. The third Son was in college and bound for medical school. The Son in the business was the middle Son and he was very helpful in all aspects of the business EXCEPT accounting/finance. When I came in to help the Father reorganize the business, it was obvious that the Son was a very smart young man, had a great work ethic and knew the business almost as well as the Father. He had worked in all aspects of the business EXCEPT accounting/finance. Sooooooo, I asked him to go back to school and take some accounting courses. He did not want to do it at first, but he did and he did well. Now he is finishing his degree and is handling all aspects of the business. I had shown him how to work in QuickBooks and initiate and follow through with transactions, but after going to school he understand what and why these transactions were necessary. So, it can work.

The point is that many times the person cannot be trained, cannot work with others and/or cannot or will not do their job. Rather than doing the right thing, many companies make "maneuvers" to "save" the person when they should have canned them or demoted them. Like Mike Huckabee says, "Do the right thing"! I agree.

What do you think?

Wednesday, February 18, 2009

The Peter Principle again

Do you know what the Peter Principle is? It is a book by the same name written by Laurence Peter probably 30 years ago. But like many of those era writings, it still applies to business today. The book was written, primarily, to call attention to the stupid and inane things managers (at all levels) do in companies rather than do the right thing for the company and the person.

Over the next few days or weeks, I am going to write about some of those main topics and attempt to get your reaction. With unemployment very high and businesses shrinking rather than expanding (at least until you get all that government money to help you out) and people less hopeful and less excited about the future than in many years, it is important to look at your business and determine what you are going to do and where you want to end up. Even if you are a 2 or 3 person company, it is time to prepare a strategic plan. Nothing as sophisticated as the what he auto makers did for Congress, but "what if" scenarios like:
1. What if my business mostly or totally dried up?
2. What if I cannot pay my employees?
3. What if I need to cut work hours and wages?
4. What if my customer base changes?
5. Do I have other options. Can I change or shift my business to meet current needs?
6. Should I take less money and put as much as possible in a "rainy day" fund?
7. What is the competition doing that I should or should not do?
8. What are my companies strengths, weaknesses, alternatives and terrors?
9. Is my strongest asset Customer Service? How can I make it that way?
10. Have I prayed about the business and sought God's help and direction?

Try the exercise even if your business is doing well right now and the future looks bright. So did the auto industry 2 years ago.

What do you thing?

Monday, February 16, 2009

Ice Cream for you and your business!

This is one of the best explanations of why Obama won the elections that I've heard yet.From a teacher in the Nashville areaWe are worried about "the cow" when it is all about the "Ice Cream."The most eye-opening civics lesson I ever had was while teaching third grade this year. The presidential election was heating up and some of the children showed an int erest. I decided we would have an election for a class president.We would choose our nominees. They would make a campaign speech and the class would vote.To simplify the process, candidates were nominated by other class members. We discussed what kinds of characteristics these students should have. We got many nominations and from those, Jamie and Olivia were picked to run for the top spot.The class had done a great job in their selections. Both candidates were good kids. I thought Jamie might have an advantage because he got lots of parental support. I had never seen Olivia's mother.The day arrived when they were to make their speeches, Jamie went first. He had specific ideas about how to make our class a better place. He ended by promising to do his very best. Every one applauded. He sat down and Olivia came to the podium.Her speech was concise. She said, "If you will vote for me, I will give you ice cream." She sat down. The class went wild. "Yes! Yes! We want ice cre am."She surely would say more. She did not have to. A discussion followed. How did she plan to pay for the ice cream? She wasn't sure. Would her parents buy it or would the class pay for it. She didn't know. The class really didn't care. All they were thinking about was the ice cream.Jamie was forgotten. Olivia won b y a land slide.Every time Barack Obama opened his mouth he offered ice cream and fifty-two percent of the people reacted like nine year olds. They want ice cream. The other forty-eight percent know they're going to have to feed the cow and clean up the mess.

What do your think?

Friday, February 13, 2009

What about this bailout for your business?

Although I believe the $800 Billion "reinvestment" plan is pure nonsense, it appears to be ready to be passed and send to President Obama. So how many jobs will it create for your family owned or small business. Probably none unless you are in the business of handling federal contracts relative to buildings, roads, bridges and schools. Even then, don't hold your breath.

There are some tax incentives that you might take advantage of once we know for sure what they are. We should know today and certainly by next week. This bill has gone through so fast that it really has not received the scrutiny that is normally allowed a bill of this magnitude and its far reaching nature. It should have gone through far more scrutiny than it did and I am praying that the lack of oversight does not once again bite in the backside.

If you are unemployed or an illegal alien, this bill really helps you. Also, if your business is raising and analyzing East Ethiopian Pygmy Mice. Also, there is several million dollars in there for determining if, in fact, Pancakes are fattening! Not really, but maybe it should. Another thing that would help is if you are already on the government dole. Then you will be able to retain your job at current pay or more whether you are performing a needed function or not.

Lastly, if you grip and complain and moan and groan about how bad things are, you should do just fine. If you are a hard working, self motivated, unselfish, great American worker, you will get nothing. Did you see the President in Peoria, Illinois yesterday. What a joke.

I live in a State that does not need any help. We have "rainy day" funds set up to get us through. Our Governor, a Democrat, did come up with some make work jobs and there is no doubt that we need help with bridges and overpasses as well as road maintenance. If he gets the money to do the "make work" projects he has outlined to our Senators, maybe it will help put some people out of work back to work. We will have to see.

What do you think?