Thursday

The 7 Principles of Business Success

                 I want to discuss a few important principles of behaviour that I have learned during 45 years in the international business community from a great number of wonderful people. These principles are not all inclusive; however, they have been selected specifically because they contributed significantly to whatever degree of success that I have been able to achieve as a leader, and I am confident they can do the same for you. They are not listed in any order of importance; they are all important and will stand the test of time.

During my diverse and varied career, I have seen these principles being tested in action and I commend them to you as one from the laboratory of practical experience. They are a means to improve your own effectiveness and the productivity of your business.

1. Rattle the Cage
In other words, make things happen. Take action. It's been said that there are those who make things happen, those who watch what is happening and those who don't know what is happening. The "movers and shakers" attack every problem with courage and tenacity that infects the entire work group. Here I am not talking about those who are so devoted to their own ideas that they defeat the major purpose. Rather, I am referring to those who initiate worthwhile action and sustain the action and enlist the support of others when necessary to accomplish the mission. It includes both initiative and follow through to a successful conclusion. Management textbooks often refer to this as managing by objectives and judging by results. Ask yourself: "What do I make happen that would not have happened except for my presence?"

2. Play Fair
To succeed, businesses must offer high-quality products, not shoddy goods; they must maintain a reputation for fair dealing; otherwise, they lose the trust of their customers and employees, as well as the bankers, the credit rating agencies, and the investing public. Creating wealth requires offering goods and services that satisfy customers' demand for value. Even suspicions of wrongdoing can destroy a company's reputation. Long-term success requires honesty and integrity; practicing fraud destroys a company's value.

The reputation of your business, and therefore, its success, depends on playing a fair game. This was a strong value-principle instilled during my years working for Caterpillar Inc. — one of the first companies to develop a Code of Worldwide Business Conduct in 1974. This Code captured basic, general ethical principles to be observed by all employees everywhere. In addition, it provided guidelines for its implementation. From time to time your employees will have to deal with different cultures and customs, and it is important that they be governed by a common code in order to maintain the integrity of your business. Develop and communicate a Code of Conduct. This principle applies to the largest multinational company as well as to the smallest startup.

3. Stifle the Urge to Stifle
I have observed many times that the best ideas and solutions to problems come from the people closest to the work. When you think about it, it's just common sense. Therefore, we must create a climate and working environment that encourages and welcomes new ideas. Do not stifle your subordinate's fragile ideas with phrases such as these:
- The Boss wouldn't like it.
- It's not in the budget.
- Let's form a Committee to investigate it.
- We're not ready for that yet.
- It's too far out, and too risky.
- Find out what are our competitors doing?

You will notice that work groups that produce creative ideas are led by managers who do not stifle ideas before they are born. These managers have the skill to listen; they single out those who have a creative drive for improvement; they try the untried; and they create a climate that nurtures new ideas.

Progress is a process of trial and error. We all learn from mistakes; therefore, mistakes should not be punished—they should be thought of as learning experiences. If you are afraid to risk mistakes, you fail to learn, fail to improve and your business will ultimately fail to survive.

4. Watch the Clock
Master the use of time. We are all given the same amount of time to use or to waste. Many times I have heard managers say: "We don't have enough time." There are many things that may have a claim on your time and it is critical to set priorities and decide how much time each of them is worth. It's a truism that we all have time to do what's important because how we spend our time is a clear indication of what we consciously or subconsciously judge to be important. Improving time management skills require that we learn to eliminate time wasting activities and to make a clear distinction between what's important and what's urgent.

A frequent cause of wasted time is a lack of clear, direct communications. Do not equivocate; tell it like it is; do not use unnecessary sophisticated language for no purpose. Unnecessary words obstruct communications and often result in misunderstanding and wasted time. Speak clearly and simply. Communicating is not just speaking and writing—it's getting the message across.

Avoid "bottlenecks." Anyone who fails to take essential action creates a bottleneck—a major time-waster because it can waste the time of an entire group. Bottlenecks are caused by procrastinators, managers who refuse to take a decision.

Some things change, but there will always be a demand for those who can get quality work done in a reasonable period of time. Remember, time is a valuable resource—learn to manage it, or it will manage you.

5. Have a Heart
We often hear business being criticized for not having a heart. It's expressed this way: "Business is too cold," or "They don't care about people." Early in my career, I was taught that you showed heart by "treating people as people." And it was not just lip service—we meant it and we practiced it.

Realize that everything you do must be done through people—not around them, not above them or below them, not in spite of them, not without their consent or agreement. No! The work must be done through people with their complete support, acceptance, respect and a belief in the purpose of your direction.

Having a heart is a two way street. Whether the person is a subordinate, a co-worker, a friend or your boss, you each must earn the loyalty and respect of each other on a daily basis. Having a heart means you care; it means you show concern for your actions and their effect on others. And most importantly, it means building lasting relationships based on trust, mutual respect and appreciation in order to achieve outstanding performance in yourself and others. And get rid of that perpetual frown, and smile.

6. Climb the Highest Mountain
Sir Winston Churchill once said: "My tastes are very simple. I like nothing but the best." This is a good principle for you as an individual, as well as for the organization you lead. Strive for high standards and excellence in everything you do, whether it is design, manufacturing, sales, marketing or customer support.

It also applies to appearance, the way you look, the way your office and plant looks, the way your employees look. I once remember a colleague asking our Chairman of the Board why we had to follow a dress code. He answered simply by saying: "It's what our customers expect, and it's what I expect because it contributes to the sum total of how others judge us and the quality of our products and service."

Why is it important to climb the highest mountain? It's to fend off the danger lurking in any organization — it's called Mediocrity. Mediocrity can sneak up on you like an insidious disease. Excellence is the alternative—the only alternative to mediocrity. Do not compromise. Demand excellence in yourself and your team. Climb the highest mountain and reach the highest peak.

7. Show Empathy
Be willing to demonstrate the proper degree of empathy in all your dealings with others. Confidence is a virtue, arrogance is a vice. If you are reading this, it's likely that you have been blessed with a better-than-average set of skills and abilities. Be modest enough to realize that you have had good fortune and help along the way. Understand that your blessing should also be used to help others along the way, and not just for your own pleasure and gratification.

With a modest attitude, you will be more patient and understanding of your own weaknesses and the weaknesses and faults in others—and you will be much more successful as a leader.

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If you follow these principles and instill them into the culture of your organization, you will find it reaching for high levels of integrity, achievement and quality. Your employees and your customers will know you stand for the rights and dignity of the individual, and they will want to make an association with your organization a life-satisfying experience.