Archive for the 'Management & Leadership' CategoryPage 2 of 6

Brainstorming - help or hindrance?

Brainstorming was first popularised in the 1930s as a creative technique for generating ideas and solving problems. Since then, mixed attitudes have emerged regarding its effectiveness above other methods for sharing and collecting ideas. Nevertheless, it is widely recognised as an enjoyable group experience that can aid team building.

There is no doubting the assertion that employees do have good ideas. In fact, a recent global study by IBM found that the top source of innovative ideas is a company’s employees. Brainstorming is specifically designed to assist the collection of ideas, focussing on quantity over quality, and encouraging more unusual or unorthodox suggestions or approaches. In this sense brainstorming is about ideas - not necessarily ‘good’ ideas.

And herein lies the strength and weakness of brainstorming. It is argued that ideas should be positively considered and developed during a brainstorming session, but criticism or evaluation should not occur - in order to maintain a supportive atmosphere. The more ideas are criticised, the less individuals feel they can openly suggest them.

The strength therefore, is in creating an open and inclusive team environment where ideas are received with equal merit and without prejudice. The weakness is that not only might time be wasted developing bad ideas, these ideas need to be subsequently criticised and evaluated - adding a laborious next step with no guarantee that good ideas will result. Another potential risk is that ideas received positively during a brainstorming session but later dismissed may result in dissatisfaction as individuals feel their ideas have been ignored (it is therefore important to manage expectations throughout the process).

Of course, good ideas may result from brainstorming. Indeed, that one crucial, business changing idea that may never have surfaced without the act of brainstorming, may pop up from nowhere. The point is - brainstorming is not a hugely efficient ideas generation process - but it is a positive and engaging team building exercise.

So what should we learn? They key message is to take brainstorming for what it is: an engaging experience that helps teams feel equal and involved in the ideas generation and problem solving process. But at the same time, it should not be relied upon to generate that next big idea or solve your toughest problems. Even though potentially, it may well do.

Read the guide Lead and motivate your staff which includes advice on team building.

Women, men, and non-linear career paths

To get more women into senior level positions, firms must engage with what Sylvia Hewlett, of the Centre for Work-Life Policy in New York, calls women’s “non-linear career paths”.

The vision is simple: a workplace where women are not penalised for opting for a non-conventional career path.

This is something that many women choose to do during their careers. According to Hewlett’s research - over a third of professional women leave work at some point, to look after children or family members, and a further third to go part-time for a while. Hewlett argues that when re-entering work, women are penalised - in terms of both salary and career progression - by a system that naturally favours a record of ‘unbroken service’.

They key to making the workplace work for women, according to Hewlett, “is to make flexibility totally universal, and to make it very real.” That means making flexibility available to everyone, not just women: The decision to work flexibly “hits men even harder than women. Men get really clobbered if they take some of this [flexibility] stuff. But it’s very important to figure out how to get men centrally involved because then you can really change the culture of the workplace, and it becomes kind of normal”.

So, if you listen to Hewlett, the key to creating an inclusive and fair workplace is flexibility for everyone, regardless of gender. But what’s in it for businesses? According to a Chartered Institute of Personal Development report - quite a lot.

In their survey, which questioned over 500 organisations in the UK, 47 per cent believe flexible working has had a positive effect on staff retention, 70 per cent perceive employee motivation as having benefited, and over half have seen positive effects on recruitment.

Though these finding are not directly linked to the assertion that flexible working can help women pursue what Hewlett brands the ‘non-liner career path’, they do provide evidence that flexible working - on its own - has measurable positive effects for businesses. If these business-related benefits also serve to create more women (and men) friendly workplaces, then really, everybody wins.

Read guide - Benefits of flexible working

Read guide - Women in business - support for businesses in the South West

What makes a great leader?

The leadership handbook lists many skills and approaches for good leadership, and defines what characteristics good leaders must exhibit. But even then, experts and the rest of us alike cannot definitively outline what makes a great leader.

This is in part because great leaders show different traits. One great leader is distant and commanding, when another is hands-on and nurturing. One is best in crises, when another is adept at avoiding them. And yet, both leaders are great. It could also be argued that what makes a leader great - more than a prescribed set of features for good leadership - is an ability to lead differently depending on the context, situation or environment.

John Sculley, president of PepsiCo during the 70s and early 80s, was responsible for turning a $16 million loss making Food Operations division into a $40 million profit making business within three years. Much of his success was attributed to recruiting new managers from rival food firms to improve product quality. Later, while at Apple Inc, the same approach backfired when a series of management reshuffles resulted in several high-level resignations and turbulent times for the firm.

It is difficult to define why Sculley’s approach failed the second time around. Did he hire and fire the wrong people? Was his approach incompatible with the company’s culture? Was a focus on shuffling heads diverting his attention away from leading the business? It seems attributing failure in leadership is just as difficult as prescribing success.

It is, of course, pertinent for any would-be leader to understand what makes a good leader good. There are many resources - including our own Top tips - that can help you build the foundations for effective leadership. But learning is only half the story. Great leaders are often great because they re-define the rules. And because there is no magic formula, you need to create your own.

More info - Top tips for Leadership

Management development increases productivity

A recently published research paper jointly funded by the London based Centre for Economic Excellence offers an intriguing insight into the relationship between management practice and business productivity.

The research, which aims to quantify company performance in relation to management practices, focusses on managers in manufacturing companies. Despite this industry bias, some of the findings have a broader relevance to many businesses, including non-multinational UK based firms.

The paper explains that “The spread of management performance between firms, even those of similar size operating in the same industry sectors in the same regions, is very broad, suggesting that management excellence is a matter of internal policy and not just the business environment”. The research also found strong links between improving management practices and large increases in productivity: “A single point improvement in management practice score is associated with the same increase in output as a 25 percent increase in the labour force or a 65 percent increase in invested capital”.

The assertion that management excellence is a product of internal policy gives weight to the widely established belief that proactive management training and development has a positive effect on productivity. Moreover, this productivity increase is so great it can eclipse other potentially more costly methods of increasing output.

In comparison to US, European and Asian counterparts, the UK performed badly in aspects of individual performance management, such as the establishment of effective, well structured targets. While UK firms work hard to recruit good people, they are far less effective at establishing processes that motivate workers to improve their individual performance and productivity.

A final point worthy of mention is a contrasting picture between multinational and non-multinational businesses. Multinational companies - in an effort to replicate the same performance standards across different regions, cultures and markets - have been forced into adopting a systematic approach to management. A positive offshoot of these efforts is improved management productivity, resulting in benefits such as better returns on capital and robust growth.

The research concludes that “the same benefits are easily accessible to other organisations, wherever they operate. Yet surprisingly few firms have made any attempt to gain an insight into the quality of their management behaviours. Those that do so give themselves the opportunity to access rapid, cost-effective and sustainable competitive advantage”.

More Info - Develop your management team

Innovate to grow

The lifecycle of products and services dictates that decline is inevitable. No matter how well your sales are doing now, you always need to think about tomorrow. Either that or sit back and watch as competitors eat up your customers.

Because nothing stands still, you need to develop your products and services even if you don’t want to grow. But if you want to eclipse the competition and grow your business - innovation can be king.

But hang on a minute. According to the 2007 BusinessWeek-BCG annual survey of senior executives, just 46% of respondents said they were satisfied with their return on innovation spend.

The same BusinessWeek-BCG survey also named Apple, the US based computer and iPod maker, ‘the world’s most innovative company’ for the third year running. Apple’s R&D spend is significantly lower than its main competitors, but year after year it yields more return on innovation spend than anyone else.

A global innovation study by management consultancy firm Booz Allen concludes that “It’s the process, not the pocketbook. Superior results seem to be a function of the quality of an organisation’s innovation process - the bets it makes and how it pursues them - rather than either the absolute or relative magnitude of its innovation spending.”

So, are you content to spend big money on innovation? Or do you see innovation as something more unique that grows from process and quality of judgement? Considering such questions is important if you want to innovate to grow.

More info - Use innovation to grow your business

Or visit the Planning how to grow section of the Business Link website.