THE ENTERPRISE
As we celebrate our independence on this Fourth of July weekend, let's all take a moment and say a silent prayer of thanks for all those Americans who gave their all to keep us free--some of whom are still doing so. I try to make a point of saying thank you to every Armed Services person I meet these days. I think they appreciate it. I certainly appreciate what they do for us.
That said, I'd like to ask a favor of all those who pass on THE ENTERPRISE to their friends, family and associates to send me a note, estimating how many people read it "downstream." I am discussing the prospect of doing some writing for a print publication or two, and I realized that I know how many people are on my direct mailing lists, but not how many are "downstream readers."
Lessons Learned
For today, there are three lessons that struck me this past week, so I am sharing them here.
"The Engine That Could"---The Hemi
Has anyone noticed the huge success that DaimlerChrysler is having with its Hemi engine. Here is a lesson in differentiation based on what consumers want--and will pay dearly to have. The Hemi isn't even a "new technology" engine--it's a throwback to an earlier era of engine designs. The Hemi is an old pushrod V-8, but with three important features:
1--The hemispherical combustion chamber head (hence the name)--which is believed to offer better performance by allowing more air-fuel mixture into the cylinder to be burned and therefore generate more horsepower and torque.
2--A new feature which allows half of the cylinders to be shut down at highway cruising speeds, where they are not needed, thus improving fuel economy.
3--The Chrysler plant in Mexico that makes the Hemi has a cost that is actually 5-10% lower than a modern dual overhead cam V-8 which has more parts and more assembly.
Additionally, Chrysler prices the highly desirable Hemi at almost a $1000 premium, and includes other profitable options with the Hemi packages (leather seats, premium stereo, etc.) to further raise the profit of Hemi equipped models.
Lesson: Price has little to do with costs, especially when consumers believe there is a desirable value and are willing to pay for it. (Similar concept: Motorola Razr thin phones)
A Marine Corps. Leader's Advice
Most people perceive the Marines to be the US premier fighting force. General Peter Pace is vice chairman of the Joint Chiefs of Staff, and he is featured in "How I Make Decisions" (FORTUNE 75 6/22/2005 p. 108). His advice, aimed at the battlefield is equally wise in many settings.
..."When you have the responsibility to make decisions, make them."...
..."On a battlefield, you don't have time to gather a lot of opinions. You have to assess the environment and make a decision based on your experience and training. ... If you're collaborative when you can be, it builds trust, so that when you have to decide right now, folks are more likely to trust your decision."
..."One thing the Marine Corps teaches is that it's better to be doing something than doing nothing. If you stay where you are, you're in the position where your enemy wants you to be. If you start doing something, you are changing the rules of the game."
..."The most effective decision may be the least predictable one. ...If you work together quickly--and start talking about what the possibilities are--you can come up with a solution."
Finally, a short and to the point statement that is also right on target:
..."Some things today--cell phones and e-mail--are not healthy for growing leaders. Before cell phones, if the boss was away, the next person in line had to make a decision. It was either right or wrong, but you had to accept responsibility. You learned and grew from that. Now it's too easy to call for advice. Senior leaders have to start saying, 'Look, if it's not dying or burning, don't call me'."
Lesson: Get informed, get prepared and when a decision is required, make one.
The Wisdom of Dumb Questions
In that same issue of FORTUNE, Geoffrey Colvin writes about The Wisdom of Dumb Questions. A few excerpts are worth noting.
"...consider the most famous dumb question in all of business, created by Peter Drucker more than 50 years ago. What business are you in?"
"So here's how you do it. Don't apologize in advance or allow as how this is probably unimportant or say any of the other things that sap the dumb question of its power. Just step up and ask it. The shorter the better. Don't be intimidated by the stunned silence that follows. Wait it out. The payoff is on the way."
Lesson: There is no such thing as a dumb question. (Unless its the one you've asked and had answered multiple times before.)
My personal dumb question, which I ask on nearly every consulting assignment I take (here I go, giving away my "secrets" again) is: Why do you deserve to be in business? Well....I'm waiting.
Best, John
PS: The economy is fine, but when the average American has to pay (charge?) $30-50 each time they fill up their SUV, that money comes right out of their disposable income. Thus they have less money to spend at stores, on services, entertainment or anything. This is approaching a 50% premium to what it cost just a couple of years ago, and there is no real relief in sight. (and that goes for freight fuel surcharges too.) That kind of hit will "take the wind out of anyone's sails"...or at least make them think twice.
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