Case Study: Competing in Retail

The Advancing Leadership Blog

By TEC Canada, September 23, 2014

By: Toronto TEC Chair, Richard Peters

The retail industry and retail strategy have been major influences on the marketing and sales operations of a number of the companies with which I have been involved. I marvel at the innovation and creativity shown by some small retailers in the face of what may appear to be insurmountable competitive threats from much larger players. Probably the largest single threatening development facing small retailers are the “big box stores” the most notable of which is Wal-Mart and the niche market “category killers” such as Best Buy and Future Shop in the technology retail sector.

I want to share a few examples, which I believe,  you will find to be inspiring and motivating competitive advantage stories. These are cases where small retail owner/operators have grown and prospered by turning potential adversity into opportunity at a time when their peers were folding their tents in face of what they perceived as impossible odds.

As I write this case study, I am reminded of the bestselling book entitled “Who Moved My Cheese?” If you have not read this book, you must. 

CATEGORY KILLERS
I have spent over 10 years helping software, hardware and internet organizations brand and market their products and services. In that time,  I dealt with dozens of retailers who either exclusively or primarily sold computers and related technology. As this industry started to consolidate “category killers” such as Best Buy and Future Shop became the nemesis of small technology retailers.  Aggressive pricing and extensive product selection caused numerous smaller retailers to close their doors.

Here are few examples of small IT retailers who through innovation managed to survive despite the odds.

1. As Best Buy and Future Shop were expanding and smaller retailers were closing their doors, one of our IT retailer’s was actually opening. If memory serves me correctly, he had 3 or 4 stores. I noticed that they were located very close to if not directly across the street from a Best Buy or a Future Shop. I asked him about the wisdom of this strategy. His perspective was that the big guys were either an opportunity or a threat and he chose to capitalize on viewing them as an opportunity

His competitive strategy focused on what he perceived were weaknesses or deficiencies in the big store business model. These were:

• When a consumer purchased a computer, TV etc. from a big store, they would invariably end up being sold cables etc. to accompany their major purchase. Often the additional cost of these ad-on items could be a few hundred dollars.  The store owner advised me that the prices being charged for these cables etc. were significantly marked up from what they had originally cost the store. Actually, the cables etc. were relatively inexpensive to the retailer but provided a significant margin opportunity. The same, by the way, is true of the “extended warranties”  often purchased when someone buys a new computer etc. These warranties represent significant bottom line revenue for retailers.
• This store owner began to advertise that, at his store, the cables etc. were included in the purchase price of any equipment. The owner noticed that while his big ticket items prices were fairly competitive with the big stores, his clients were willing to pay a little more for these major items to avoid the additional cost of the add-on items. In many cases, despite the fact that some of his big ticket item price was higher, when the customer  factored in the “free” cables and accessories, that they would be required to buy a “big store” , the total cost was less at the small retailer.
•  Another competitive advantage was his “knowledgeable staff” and outstanding customer service.  In his stores he hired what he referred to affectionately as “nerds” who lived and breathed IT. The big stores on the other hand were less inclined to do so. The big operators offered clients access to in-store tech services such as “Geek Squad”at Best Buy who, if they were unable to deal with your issue in the store would visit your home or office and, for an hourly fee, would resolve whatever issues you had.  The smaller operator also offered to send a technician to a customer’s home “free-of-charge” to help them setup whatever new equipment had been purchased as well as resolve issues with existing equipment. He also opened his stores earlier and closed later than the big stores. He encouraged people to stop by on their way to work and on their way home.

 The retailer found that people quickly discovered where he was. Word-of-mouth and referrals were a significant source of business. Once new customers did business with him, he found they tended to check with him before visiting the big stores for future purchases.

2. Another IT retailer had his stores located in close proximity to supermarkets. He noticed that men were less inclined to want to spend time shopping with their wives or partners if they had someplace to which they could easily escape after parking the car and kill time while their other half was shopping. He trained his staff not to pressure people to buy but to create an atmosphere where people could come to relax, check out the equipment, have coffee, relax, ask questions and feel comfortable. He found that he developed a dedicated clientele who felt a loyalty to his store where they had developed relationships. They were even willing to pay slightly higher prices to shop there because of the level of service, customer relationship practices and convenience.

THE WAL-MART ADVANTAGE
Media and public interest groups have ensured we are well acquainted with the plight of small retailers as they face the “big box” effect caused by large operators moving into their markets. Wal-Mart, of course, has come to define everything that is evil about these big box operations. However, there have been instances where smaller retailers have risen to the challenge and turned even Wal-Mart adversity into opportunity.

A few months ago I read a story about a small “general merchandise” store in Alberta which had the misfortune to be located across from a new Wal-Mart location. The store had been operating for years prior to the Wal-Mart opening its doors but the effect of discounts and expansive product lines was taking its toll on the small store’s business. The owner decided that closing her doors was the final option but not the only one. She looked for opportunities that her new neighbor might provide. She came to realization that by altering her product line to consist of products not sold in Wal-Mart, she could take advantage of the traffic coming to Wal-Mart to also visit her store.

The Wal-Mart parking lot became her store’s parking lot and her business did better with the Wal-Mart next store than it had before the Wal-Mart arrived. 

CONCLUSION
In all these cases, the store owners looked out their store windows and did not see potential customers shopping somewhere else but rather people arriving in their neighbourhood looking for opportunities to spend money.

The challenge, as these store owners saw it, was to redefine the terms of competitive engagement and they chose to “complement” and “supplement” rather than compete.
photo credit: Tau Zero via photopin c

Big Hairy Audacious Goals Drive Innovation: How Modern Engineering Is Reshaping Manufacturing

TEC Canada | Leadership Development for the Thinking CEO

By TEC Canada, February 18, 2014

TEC Canada is comprised of the most influential leaders and entrepreneurs from high-performing organizations across the country. These Members have compelling stories to tell about building brands that stick and creating messages that resonate. TEC has partnered with Sticky Branding to bring you these stories about the successful brands of our Members, like TEC Member and General Manager of Modern Engineering, Udo Jahn. The article first appeared on Sticky Branding.

“The BHAGs looked more audacious to outsiders than to insiders. The visionary companies didn’t see their audacity as taunting the gods. It simply never occurred to them that they couldn’t do what they set out to do.” -Jim Collins & Jerry Porras, Built To Last.

Goals drive performance, especially BHAGs — big hairy audacious goals. They stretch you to try things beyond your reach, but they also focus your team on what’s important.

Modern Engineering is one of the oldest machine shops in British Columbia. It’s a second generation family business founded in 1939, and they have a BHAG. Udo Jahn, General Manager of Modern says, “Our primary goal is to render conditions favorable to manufacture in North America.”

It’s no small goal. They’re not simply interested in competing on a global stage. They’re trying to rejuvenate the value proposition of manufacturing industrial equipment in North America. 

BHAGs drive behaviors
BHAGs have two roles. First, they stimulate and motivate your team to change. And second, they shape the ideology of your brand.

Modern Engineer’s BHAG fulfills both roles. The goal gives the team latitude to innovate and try new ideas. They can look beyond their client projects, and consider how they can make incremental improvements in the business and their approach to manufacturing. It’s liberating to innovate when you have a clear purpose.

The goal also shapes Modern’s brand. They can approach their clients, and challenge them to improve their manufacturing processes too. The ideal becomes infectious, and allows engineers to come together, try new ideas and work to improve processes and techniques.

The BHAG elevates the brand from just another supplier to a company deeply committed to innovation and pushing the status quo. 

There’s no such thing as perfection
Perfectionism is a deterrent to a BHAG. Your team needs latitude to take risks, make mistakes, learn and get better.

Udo explains, “There’s no such thing as perfection. It’s the 80/20 Rule. If you can solve 80% of the problem you’re laughing.” But very few people or companies share this point of view. Udo continues, “Everyone wants to be number one, but they forget they have to get past 50% first. We’re conditioned to strive for perfection. People measure themselves from 100% down versus 50% up.”

It’s an interesting insight, and it makes Modern’s pursuit of a BHAG more achievable. Their goal is massive. It has a lot of moving parts, and many are outside of Modern Engineering’s control. But by focusing on incremental improvements they can work on what’s in their control, and they can make tangible improvements month-over-month and year-over-year.

Udo continues, “We’re heavily invested in becoming better every day. We don’t try to compare ourselves to the competition. We try to compare ourselves to where we’ve come from, and ask are we better today?” 

Make purposeful investments
A BHAG demands action.

You can’t make manufacturing in North America productive and competitive without very purposeful investments. Udo says, “We put our money where our mouth is.”

Modern Engineering makes major investments in capital equipment, processes and talent to achieve their BHAG. For example, they’re about to become the only machine shop in Western Canada with five 5-Axis CNC machines. And they invest in the tools and automation to operate at peak performance.

Modern also invests heavily in talent. Udo explains, “Our apprenticeship program is a clear differentiator for the company. We have more apprentices than all of our direct competitors combined.”

The apprenticeship program allows Modern to find talent early, teach them how to be tradespeople versus technicians, and give them the tools to succeed. Out of Modern’s entire workforce only two of their employees were not apprentices. 

Go big or go home
Does a BHAG make a brand? No. Collins and Porras write, “BHAGs alone do not make a visionary company. Indeed, progress alone — no matter what the mechanism used to stimulate progress — does not make a visionary company.” But when used effectively, a BHAG does shape a brand.

Udo Jahn’s vision for North American manufacturing is infectious. It gets people to say, “That’s interesting. Tell me more.”

And that interest comes out in many ways. It attracts talent that want to make a dent in the manufacturing sector, and want to work towards the vision. It attracts customers that share the same belief, and want to work with suppliers that get it.

The BHAG is a lightening rod. It takes the brand from just another machine shop to one challenging the status quo and working to achieve something greater than the collective sum of its parts. 

Author bio
Jeremy Miller is the President of Sticky Branding — a strategic brand consultancy that helps companies stand out, attract customers and grow sticky brands. Jeremy publishes a weekly column called Sticky Branding Stories that shares examples of how mid-market companies are growing sticky brands. You can reach Jeremy at 416.479.4403, and for more information visit http://www.StickyBranding.com. 

TEC Member Profile
Modern Engineering is a CNC machine shop dedicated to serving their customers with integrity. They provide the latest in machining and measuring technologies in order to provide high quality, cost effective solutions. Modern is one of the oldest machine shops in British Columbia, founded in 1939. They stand out as an innovator in their sector.
photo credit: ferdy001 via photopin cc

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Cooperation and Collaboration

by John J. Trakselis Coaching Essay

“It is the long history of humankind (and animal kind, too): those who learned to collaborate and improvise most effectively have prevailed.” – Charles Darwin

“The most powerful force ever known on this planet is human cooperation - a force for construction and destruction.” – Jonathan Haidt

Do you remember some of the old Western movies where the good guy faces down the bad guys? I think the image of the lone gunslinger is a part of our American culture, but if you look at those western shoot ‘em up movies again, you will notice the presence of someone who assisted our hero in accomplishing his task. Maybe it was a little boy who yelled “watch out” or maybe it was the townspeople who mustered their courage to provide that extra “oomph” so our hero could get the job done. Rarely did one guy win the day all by himself – especially when you consider the number of incidents typically leading up to the final “shootout.” Someone was always rooting for and/or standing by our hero in some way. Heck, even the “Lone” Ranger had Tonto.

“I never did anything alone. Whatever was accomplished in this country was accomplished collectively.” – Golda Meir

So what makes us think we have to do everything by ourselves? Yes, we have a responsibility to address those things requiring our attention. However, we must keep in mind there are a number of ways to go about completing our assignments, and asking for help is key. In fact, I’ve come to the conclusion recently that there is nothing we get done as a result of our singular efforts.

Think “Win-Win”

One of the important principles in cooperating and collaborating with others is Stephen Covey’s principle of “Think Win-Win.” Organized sports, political races, winning an Oscar or a Grammy are “Win-Lose” in the minds of the general public. In many respects, this is unfortunate. Not to diminish those who catch the brass ring, but the fact is that “winners” all have one thing in common. They have someone behind them who enabled, empowered, assisted or even pushed them to get to where they are. The same is true for those who earn a place or get nominated for a significant accolade.

In my work as a Vistage Chair I get to see a number of speakers and business coaches whom the general public views as individual performers. Sure, they are often on the stage by themselves and they might be the center of attention. But, if you look at what goes on behind the scenes, you’ll see there are a number of things they accomplish that requires a supporting crew. In some cases it might be handling the administrative tasks – the details that would distract these professionals from concentrating and preparing themselves for what they get paid to do. In other cases, winners may have trusted collaborators who tell them the truth (as they see it) with the sole purpose of pointing out the blind spots which can hinder success.

I also work with a number of successful business owners, CEOs and senior executives, and I have not found one who doesn’t want a good team behind him or her to help drive the success of the whole company. In a team situation, you may have heard that a chain is only as strong as its weakest link. What is a chain in a company? It is the myriad processes, systems and people who run the business on a day-to-day basis. A well-functioning group of purposeful people is a beautiful thing to watch. A dysfunctional team, on the other hand, can be painful to observe.

So, I encourage you to think about how you can accomplish more with the assistance of others.

Take in Feedback—Be Coachable

“The strength of the team is each individual member. The strength of each member is the team.” – Phil Jackson

At the personal level, I notice that in our rush to finish an assignment we may get irritated if someone suggests additional actions when we are ready to move toward completion. Notice your irritability! Take that extra minute and process that anger or fear or even sadness. Do you have an issue with the one who makes the suggestion? Not all “suggestions for improvement” are done with positive intent. While it may be hard to take disapproval of your work by someone who does not have your best interests at heart, see if you can focus on the quality of their suggestion. Is it helpful, practical or cost-effective? Will it add to the quality of the work? Will accepting the feedback improve your work, allow the project to be completed on time or be completed more economically? Is it part of the next phase or your work, i.e., is it essential now or for the future? Did you miss it when doing the work? Realize that it is rare when we can’t improve our work but also realize that you cannot reinvent the wheel every time you solve a problem, take on a challenge or pursue an opportunity.

Do You Belong Where You Are?

“Individually, we are one drop. Together, we are an ocean.” – Ryunosuke Satoro

At the organization level take a look at how your culture supports results by fostering teamwork. Is it a sharing culture or a hoarding culture? Is it hero driven or is it results driven? I like participative, collaborative and collegial cultures. More work gets done in this type of environment, and I think the people in the company have more of a sense of accomplishment and belonging. They feel seen, heard and accepted. Their work and the work of others have more meaning. The funny thing about cultures, however, is that no one individual fits all types of settings. In fact, one of the big factors that will determine the success of any individual is their fit. If you don’t fit in two things will happen: you will eventually be shunned and you will ostracize yourself—and not necessarily in that order.

What will Make My Cooperation and Collaboration Successful?

“Nothing truly valuable can be achieved except by the unselfish cooperation of many individuals.” – Albert Einstein

If we seek greater cooperation and collaboration, the following questions might be helpful in determining if we can work with a particular individual or with others in a certain company:

• Do I have clearly defined values?
• Does my task (or responsibilities) have a clearly defined mission?
• How do my mission and values correlate with the purpose and values of the people I want to work with – in other words are we in alignment?
• Am I working in or with a culture where I fit in?
• What will be my unique contribution?
• How effectively will I work with others, including team members and my boss?
• How strongly do I trust my answers to these questions?
• How can I validate my conclusions – who is capable and willing to give me useful feedback?

The Bottom Line

Give up the illusion that you have to do everything yourself, all of the time! You can receive a lot more help than you may realize and there is a a great deal of assistance available to you. Look for the opportunity to make 1 plus 1 equal to 3 or more. The Pareto Principle says that the first 20% of the effort produces 80% of the results. You can get a lot closer to that 100% if you learn how to cooperate and collaborate with others in your endeavors and in their assignments. Think about getting to 100% without more effort but with the backing of your collaborators.

“One cannot be pessimistic about the West. This is the native home of hope. When it fully learns that cooperation, not rugged individualism, is the quality that most characterizes and preserves it, then it will have achieved itself and outlived its origins. Then it has a chance to create a society to match its scenery.” – Wallace Stegner

And, there is more, there always is.

Be genuine.

5 Traits of Men Who Lead

By TEC Canada, March 19, 2014

by Catherine Osler, President of TEC Canada

Business leaders have increasingly begun to recognize they need to develop and maximize their leadership abilities to thrive in the new economy. Leadership and influence is a complex, multi-dimensional topic currently being researched, explored and examined from an infinite number of perspectives. All of this new work can help business leaders achieve results beyond what they thought possible.

In my last column, I shared some of my research about leadership traits generally found in successful women business leaders. This month, I’d like to take a look at those generally found in men. Readers of both my columns will note men and women exhibit some of the same leadership traits. While recent research and my own experience indicates great leaders of both genders share common characteristics, here are the traits more generally associated with men.

1) Men are focused on crossing the finish line
According to Gary N. Powell’s study “Women and Men in Management,” women practice a more democratic style of leadership, while men tend to take a more direct, focused approach. Acting with single-minded focus to execute smart, well-conceived plans is a fundamental trait of accomplished men.

But to cross the finish line and achieve the desired end results means learning from the mistakes that inevitably occur even with the best laid plans. Great leaders see a learning opportunity in everything, but especially in their mistakes. Steve Jobs was fiercely even stubbornly single-minded, but it is generally acknowledged by his critics and admirers he learned from his business errors.

2) Men are natural risk takers
In 2013, Loblaw’s President Galen Weston Jr. engineered a $12.4 billion takeover of Shoppers Drug Mart, one of the biggest in the country’s retail history. This, along with his strong stance on the need for change in Bangladesh after the Dhaka factory collapse in April 2013, led Canadian Press to select Weston as Business Newsmaker of the Year.

Risk is a necessary part of change and growth. The blog “Leadership Freak” captures the dynamic of men and risk in the following statement: “Male leaders tend to take risks publicly and expect others to be inspired by their boldness.”

3) Men can keep emotion out of the workplace
Shaunti Feldhahn, author of “The Male Factor,” spent seven years conducting intense research, including interviews with more than 3000 men, in an effort to help women better understand how to interact with males in the workplace. One of her findings was that confrontations in the workplace don’t seem to distract men in their efforts to accomplish a given task. They can experience a tough conversation, an emotional termination, a heated Board meeting – and then move forward. As Peter Drucker wrote, “effective leadership is not about being liked; leadership is defined by results not attributes.”

4) Men know their value
Several recent surveys indicate successful men recognize the responsible accumulation of long-term wealth – whether through entrepreneurial risk taking, salary negotiation or investment – is a trade-off for their hard work, skill, talent and knowledge. Men’s ability to put emotion aside means money negotiations remain strictly business and not personal. Successful men know financial responsibility and gain is the leverage to pursue their dreams.

5) Sharing Similarity, Celebrating Diversity
The traits I have been discussing in this column are a finely balanced exercise in leadership. While some traits may come more naturally to one gender, becoming an inspiring leader is about knowing your strengths and recognizing your weaknesses, with a goal to continuously improve. It is also a reminder to celebrate the differences between male and female leaders and the richness diverse leadership can bring to create greater understanding in the workplace and ultimately stronger organizations.

Big Hairy Audacious Goals Drive Innovation: How Modern Engineering Is Reshaping Manufacturing

By TEC Canada, February 18, 2014

TEC Canada is comprised of the most influential leaders and entrepreneurs from high-performing organizations across the country. These Members have compelling stories to tell about building brands that stick and creating messages that resonate. TEC has partnered with Sticky Branding to bring you these stories about the successful brands of our Members, like TEC Member and General Manager of Modern Engineering, Udo Jahn. The article first appeared on Sticky Branding. 

“The BHAGs looked more audacious to outsiders than to insiders. The visionary companies didn’t see their audacity as taunting the gods. It simply never occurred to them that they couldn’t do what they set out to do.” -Jim Collins & Jerry Porras, Built To Last.

Goals drive performance, especially BHAGs — big hairy audacious goals. They stretch you to try things beyond your reach, but they also focus your team on what’s important.

Modern Engineering is one of the oldest machine shops in British Columbia. It’s a second generation family business founded in 1939, and they have a BHAG. Udo Jahn, General Manager of Modern says, “Our primary goal is to render conditions favorable to manufacture in North America.”

It’s no small goal. They’re not simply interested in competing on a global stage. They’re trying to rejuvenate the value proposition of manufacturing industrial equipment in North America. 

BHAGs drive behaviors
BHAGs have two roles. First, they stimulate and motivate your team to change. And second, they shape the ideology of your brand.

Modern Engineer’s BHAG fulfills both roles. The goal gives the team latitude to innovate and try new ideas. They can look beyond their client projects, and consider how they can make incremental improvements in the business and their approach to manufacturing. It’s liberating to innovate when you have a clear purpose.

The goal also shapes Modern’s brand. They can approach their clients, and challenge them to improve their manufacturing processes too. The ideal becomes infectious, and allows engineers to come together, try new ideas and work to improve processes and techniques.

The BHAG elevates the brand from just another supplier to a company deeply committed to innovation and pushing the status quo. 

There’s no such thing as perfection
Perfectionism is a deterrent to a BHAG. Your team needs latitude to take risks, make mistakes, learn and get better.

Udo explains, “There’s no such thing as perfection. It’s the 80/20 Rule. If you can solve 80% of the problem you’re laughing.” But very few people or companies share this point of view. Udo continues, “Everyone wants to be number one, but they forget they have to get past 50% first. We’re conditioned to strive for perfection. People measure themselves from 100% down versus 50% up.”

It’s an interesting insight, and it makes Modern’s pursuit of a BHAG more achievable. Their goal is massive. It has a lot of moving parts, and many are outside of Modern Engineering’s control. But by focusing on incremental improvements they can work on what’s in their control, and they can make tangible improvements month-over-month and year-over-year.

Udo continues, “We’re heavily invested in becoming better every day. We don’t try to compare ourselves to the competition. We try to compare ourselves to where we’ve come from, and ask are we better today?” 

Make purposeful investments

A BHAG demands action.

You can’t make manufacturing in North America productive and competitive without very purposeful investments. Udo says, “We put our money where our mouth is.”

Modern Engineering makes major investments in capital equipment, processes and talent to achieve their BHAG. For example, they’re about to become the only machine shop in Western Canada with five 5-Axis CNC machines. And they invest in the tools and automation to operate at peak performance.

Modern also invests heavily in talent. Udo explains, “Our apprenticeship program is a clear differentiator for the company. We have more apprentices than all of our direct competitors combined.”

The apprenticeship program allows Modern to find talent early, teach them how to be tradespeople versus technicians, and give them the tools to succeed. Out of Modern’s entire workforce only two of their employees were not apprentices. 

Go big or go home
Does a BHAG make a brand? No. Collins and Porras write, “BHAGs alone do not make a visionary company. Indeed, progress alone — no matter what the mechanism used to stimulate progress — does not make a visionary company.” But when used effectively, a BHAG does shape a brand.

Udo Jahn’s vision for North American manufacturing is infectious. It gets people to say, “That’s interesting. Tell me more.”

And that interest comes out in many ways. It attracts talent that want to make a dent in the manufacturing sector, and want to work towards the vision. It attracts customers that share the same belief, and want to work with suppliers that get it.

The BHAG is a lightening rod. It takes the brand from just another machine shop to one challenging the status quo and working to achieve something greater than the collective sum of its parts. 

Author bio
Jeremy Miller is the President of Sticky Branding — a strategic brand consultancy that helps companies stand out, attract customers and grow sticky brands. Jeremy publishes a weekly column called Sticky Branding Stories that shares examples of how mid-market companies are growing sticky brands. You can reach Jeremy at 416.479.4403, and for more information visit http://www.StickyBranding.com.

TEC Member Profile

Modern Engineering is a CNC machine shop dedicated to serving their customers with integrity. They provide the latest in machining and measuring technologies in order to provide high quality, cost effective solutions. Modern is one of the oldest machine shops in British Columbia, founded in 1939. They stand out as an innovator in their sector.

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Four Traits of Women Who Lead

by Catherine Osler, President of TEC Canada


TEC Canada recognizes the importance of having a more gender-balanced approach to leadership roles. Forbes.com reported that according to studies, firms with women on their boards “outperform their rivals with a 42% higher return on sales, 66% higher return on invested capital and 53% higher return on equity.” Quite simply, women look at problems differently and often take a more empathic approach to leadership.  TEC’s peer groups are designed to challenge the status quo and encourage dynamic, inspiring conversations to process the issues senior executives face on an ongoing basis.  We welcome more women to contribute to this dialogue and this starts with having exceptional Chairs to guide that process.

While all of our Chairs have many awards and accolades, we would be remiss if we didn’t recognize two of our own successful women leaders:

• Joyce Groote, Vancouver Chair is receiving the Influential Women in Business award on March 3, 2014.
• Katherine Crewe from Montreal is one of TEC Canada’s newest Chairs.  She was recognized as one of the Top 100 Businesswomen to Watch by Entreprendre Magazine.

These women, along with all our Chairs, are committed to the relentless pursuit of excellence and providing their members with the tools to achieve success. I invite you to join me in recognizing International Women’s Day on March 8th. It doesn’t matter if you are a successful entrepreneur, a corporate executive, a new manager – or someone who is at a crossroads in her career and wondering “what’s next?” You are part of a sea of change in leadership style and behavior.

Sheryl Sandberg’s bestseller “Lean In” paints a vivid picture of how far women in leadership still have to go:
• Out of 100 global heads of state, only nine are women,
• In the corporate sector, just 15 to 20 per cent of C-suite jobs are held by women, and
• In the non-profit sector, women hold only 20 percent of the top positions.

Helping women to develop their leadership potential has been a passion of mine and a key professional commitment I made many years ago. After more than two decades of executive consulting, study at some of North America’s most recognized leadership institutes, and my role as CEO of TEC, I have found the successful women leaders I have coached and worked with over the years generally all share four particular traits. What follows is a brief look at these four and what some of the world’s most successful women CEOs have to say about them. 

1. Believe in Yourself
Believing in yourself – your vision, your aspirations and dreams – will drive you forward especially on those days when you can’t see the forest for the trees. Author J.K. Rowling, fashion icon Coco Chanel, Body Shop Founder Anita Roddick – these are women with resolute beliefs in themselves despite their many critics and naysayers. Rowling, who was named the “Most Influential Woman in Britain” by leading magazine editors in 2010, achieved publishing success only after several years of constant rejection. “I was convinced the only thing I wanted to do was to write novels. So what’s the worst that could happen? Everyone turned me down; big deal,” she said.

2. Value Perseverance
Building a business, moving forward in your career and leading organizations all require dogged determination. Whatever obstacles may be put in your path, it is essential to move forward, modelling for your employees, colleagues and customers that you will not back down from a challenge. Cosmetic icon Estée Lauder once said, “I didn’t get there by wishing for it or hoping for it, but by working for it.”

3. Stay Focused
The power to set both short- and long-term goals should never be underestimated. Goals are the road-map to success and goal-setting takes place daily, weekly, monthly and annually. Consider what Mary Kay Ash, Founder of global cosmetic company Mary Kay, once said, “We must have a theme, a goal, a purpose in our lives. If you don’t know where you are aiming, you don’t have a goal.My goal is to live my life in such a way that when I die, someone will say ‘she cared.’” Staying focused is about knowing what you want, then mapping your path with the goals and measures to achieve it.

4. Be a Smart Risk-Taker
To truly accomplish great things, you must go outside your comfort zone because that’s where growth happens. As Sandberg says, this is where you need to “lean in,” raising your hand for opportunities and stepping into new challenges.

Never underestimate that quiet inner voice and its ability to lead and guide you forward. Your inner wisdom – something women are generally closer to – can help you to accurately assess risk. Calculated risks can lead to payoffs beyond what you thought possible.

Martha Stewart, who through her savvy, grit and determination created a brand and a business enterprise that has weathered all kinds of difficulties, maintains “it is within everyone’s grasp to be a CEO.” I am committed to making TEC the kind of organization where women business leaders can achieve beyond what they thought possible. 

If you are aiming to move your leadership skills and abilities to a new level contact Richard Peters at rpeters@tec-canada.com

Leaning Into Difference: The Key to Solving Tough Problems

By Craig Weber

"Honest differences are often a healthy sign of progress." — Mahatma Gandhi 

"Life is a series of problems," observed M. Scott Peck. A more accurate statement was never made. But when it comes to solving them it's important to realize that not all problems are created equal. All our difficulties fall somewhere on a spectrum; at one end of this spectrum we find routine problems, and, at the other end, adaptive challenges. A routine problem isn't considered routine because it happens regularly, but because we have a routine for dealing with it – a protocol, a process, or expert on which we can depend for a reliable fix. A routine problem may be irksome and expensive, but at least we're in familiar territory and know what to do about it. When we're facing an adaptive challenge, on the other hand, we're off the familiar trail in uncharted territory where there are no proven routines, protocols, solutions, or experts. To successfully negotiate an adaptive challenge we must work and learn with others to navigate the alien terrain. All the problems we face in life fall somewhere between these two distinct poles.

It's easy to see these two types of problems in the workplace. If our corporate computer loses connectivity, for example, there's a clear process for getting the problem fixed. It might be frustrating, but the problem is routine. If our corporate culture is trashing our strategy, however, we're in highly adaptive territory, because, unlike the computer problem, there is no simple solution, no established process, no ready expert who can solve the problem for us.

Performing effectively in today's world is increasingly difficult because the number of adaptive challenges we face is snowballing. The culprits driving this trend are well known – rampant technological, social, economic, and political upheaval, and all the unpredictable change, surging complexity, and expanding globalization that comes with it.

Given this shift, it's more important than ever to recognize the distinction between routine and adaptive issues because they each require a profoundly different problem solving approach. For a routine problem a bias for action is appropriate. We have a routine, we know what to do, so as Nike suggests, we should "just do it." But for an adaptive challenge – where there is no clear routine, no proven process, no ready expert who can save the day – a bias for learning is essential. Why? To navigate our way over unfamiliar ground we must roll up our cognitive sleeves and work with others to figure out the best way forward. We must orchestrate, in other words, a process of adaptive learning.

The key to adaptive learning is leaning into difference – the act of seeking out and exploring conflicting ideas and views. "If people don't engage across the divide of their differences there is no learning," says Ron Heifetz. "People don't learn by looking in the mirror. They learn by talking with people who have different points of view. In a sense then, conflict is really the engine of adaptive work, the engine of learning." And a critical competence that enables our ability to learn from difference is something I refer to as conversational capacity – the ability to have open, balanced, learning-focused dialogue about tough, heated, adaptive issues. High conversational capacity transforms how we react to people with different perspectives and information because our strong bias for learning leads us to see them as rich opportunities to expand our awareness and learn, not petty nuisances to be avoided or attacked. Rather than cave in or argue when someone has a different point of view, we get curious: "What might their perspective teach me about how I am looking at this issue?"

This learning-focused orientation dramatically expands our ability to make informed choices, because, as Peter Elbow explains, "The surest way to get hold of what your present frame binds you to is to adopt the opposite frame. A person who can live with contradiction and exploit it – who can use conflicting models – can simply see and think more." And when working in unfamiliar territory nothing is more important than the ability to see and think more.

Abraham Lincoln understood this. Facing an adaptive challenge of historic proportions – a civil war and the utter failure of the American experiment – he did something unusual: he pulled into his cabinet people with political agendas that clashed not only with his own views but with each other's. He didn't create this hornets' nest of conflicting perspectives because he yearned for comfortable cabinet meetings, nor did he do it because he wanted to get his way all the time. He did it because he knew a room full of contrasting points of view would help him make wiser, more informed decisions about the adaptive realities he was facing. The diversity of Lincoln's cabinet helped him to see and think more.

Vistage (In Canada: TEC Canada @ www.tec-canada.com) gets this too. Vistage/TEC-Canada is a global organization of over 17,000 CEOs, business owners, and top executives that meet in peer advisory groups to facilitate conversation, spark insight, and spur growth. I've spent over fourteen years working with hundreds of Vistage groups and I'm impressed with the learning the experience generates. As with Lincoln's cabinet, the power of a Vistage/TEC meeting isn't in the sameness around the table – it's in the difference. The candid dialogue and open-minded exposure to the varying personalities, organizations, educations, cultures, and life experiences of the group members allows each executive to see and think more about their important leadership problems. After a CEO explores an adaptive challenge she's facing with her Vistage/TEC group, she drives home with an expanded field of vision and clearer set of choices precisely because she leaned into – and learned from – the diverse views of her colleagues.

But mere exposure to difference isn't enough. Our differences only facilitate adaptive work if we have a bias for learning that is greater than our natural defensiveness to new and conflicting ideas. To truly learn from different perspectives we need the conversational capacity to balance candor and courage with curiosity and humility, to genuinely approach conversations with people who see the world differently as opportunities to trigger an "aha" moment – the exhilarating experience of having a blind spot in the mental map of our predicament unexpectedly illuminated.

Because it enables us to think smarter, faster, and together, the adaptive learning provoked by leaning into difference is invaluable in any organization facing tough challenges (and what organization isn't?). So let me leave you with a few questions to consider and discuss: What are the major issues facing your team and organization? What aspects of those issues are predominantly routine and which are more adaptive? When it comes to the adaptive challenges you're up against, does your team have the appropriate bias for learning needed to do the necessary adaptive work? If not, what can you do to build their conversational capacity so they can engage these challenges in a more balanced, healthy, learning-focused way?

Craig Weber is the author of the groundbreaking book, Conversational Capacity: The Key To Building Successful Teams That Perform When The Pressure Is On (McGraw-Hill, 2013) and the founder of The Weber Consulting Group, an alliance of experts committed to helping organizations and teams build their capacity for engaging tough, wicked, adaptive challenges. 

Culture Resonates: How DevFacto Grew 96% With a Dynamic Culture

By TEC Canada, February 4, 2014

TEC Canada is comprised of the most influential leaders and entrepreneurs from high-performing organizations across the country. These Members have compelling stories to tell about building brands that stick and creating messages that resonate. TEC has partnered with Sticky Branding to bring you these stories about the successful brands of our Members, like TEC Member and CTO of DevFacto, David Cronin. The article first appeared on Sticky Branding. 

 Your corporate culture is an integral part of your brand. David Cronin, CTO of DevFacto argues, “Happy employees create happy customers.”

 A happy employee brings a brand to life. It’s hard to miss a person who truly loves her job. Her passion is infectious, and her performance is heightened. When your employees love their jobs and love coming to work it radiates throughout your brand.

DevFacto is a software development firm based in Edmonton, Canada. Their goal is to “build software that humans love to use.” They develop custom software applications for a variety of industries throughout North America and Europe, and have deep expertise in Web and mobile application development.

But if you ask David Cronin what makes DevFacto unique he’ll tell you it’s their culture.

Employees are the front line

The CEO is not the chief spokesperson of a brand, the employees are.

DevFacto has grown over 96% in the past three years, and their growth has been fueled by their culture. Laura Browning, DevFacto’s Marketing Specialist explains, “Everybody is truly happy to work here. We’re inspired by each other. Everybody is learning. So at the end of the day, we are able to deliver great work. And that aids in our word of mouth, and having happy customers that come back.”

DevFacto doesn’t rely on a handful of elite consultants, business owners or rainmakers to grow the firm’s brand and reputation. The culture is doing it for them. Every client interaction is an opportunity to demonstrate what makes the firm unique, how they value their work, and prove it in the results they bring to their clients.

DevFacto has over 70 full time employees and 40 sub contractors. Each person is an ambassador of the firm. And clients come back again-and-again, because they prefer to work with these people.

Culture is an investment

Since its founding in 2007, DevFacto has placed a premium on their employees. David says, “The two most important aspects of our business is our culture and our people.”

A lot of companies claim their employees are their most important asset, but fail to back it up with a real investment. DevFacto has invested purposefully to nurture their culture, and you can see it in their office, their actions and their celebrations.

The office is designed for all their employees to have individual rooms so they can focus and work undisturbed on creative projects. But when they come out the office has meeting spaces and bump zones to foster interaction.

The bump zones are an important part of the DevFacto culture. The lunchroom is in the center of the office, and everyone eats there daily. They even conduct final interviews with new recruits in the lunchroom so they can interact with the employees and see the culture and its values up close.

The culture is part of DevFacto’s routines. They have daily huddles to catch up and discuss projects, and every Friday they turn on the music at 4pm for “Beer Time.” This is a social moment for the team to interact with one another, celebrate the week’s successes and rejuvenate.

DevFacto also goes above and beyond industry norms with their employee events. For their five year anniversary they took the entire team to Las Vegas to celebrate. David explains, “If you’re not living it, you don’t get it. Most companies would never spend a couple hundred grand on a party for their staff. It would get denied every time it’s requested, because it cost too much money. But we feel it’s so integral to our culture that we invest in it.”

Built for the employees

DevFacto’s culture is a core value, and it reflects the beliefs and values of its founders David Cronin and Chris Izquierdo.

David continues, “If we were building this company for sale we would have done things differently. We’re building our company so that our employees can buy it from us in the future. That’s our plan. When you do that you want to create a culture that people love so much they’re willing to put their own money into it.”

It’s a profound idea to create a business that your employees love so much they’ll buy it. But consider the other side of the coin for a moment. When your employees believe in the brand so much that they’ll personally invest in it, imagine how your customers feel?

DevFacto’s culture not only creates a great place to work, it creates a great company to hire. Their customers get to work with enthusiastic and committed people. They get to work with people who are innovating, and believe in the results they are delivering.

Sticky brands are grown from the inside out, and culture is an integral component of the client experience.

Author bio

Jeremy Miller is the President of Sticky Branding — a strategic brand consultancy that helps companies stand out, attract customers and grow sticky brands. Jeremy publishes a weekly column called Sticky Branding Stories that shares examples of how mid-market companies are growing sticky brands. You can reach Jeremy at 416.479.4403, and for more information visit http://www.StickyBranding.com.

TEC Member Profile

DevFacto is a Microsoft Gold Certified consulting company based in Edmonton, Canada. They specialize in delivering full-cycle IT software solutions to enterprise clients. Their dedicated teams specialize in portals and collaboration, software design and delivery, enterprise mobility, and managed services, utilizing current technologies such as SharePoint, .Net, iOS and Windows 8. DevFacto stands out with a dynamic culture that radiates through their brand. The firm has grown over 96% in the past 3 years, and their culture is a key contributor to their success.

The Benefits of Belonging to a CEO Group

Q: What is a CEO group, and should I join one?

A: If you're a business owner or chief executive who wants honest (sometimes brutally honest) feedback on how to do your job better, you could be a prime candidate to join a CEO group.

Also known as an executive peer group, a CEO group typically consists of eight to 16 senior executives who get together for frank discussions on how they can better manage their businesses and, often, their lives. But as Peter Parker learned on his way to becoming Spider-Man, with great power comes great responsibility. Brian Davis, who chairs three CEO groups for San Diego-based Vistage, the nation's largest facilitator of such groups, says members must be willing to divulge their company's biggest challenges and make their own candid contributions to the group.

"I think of a CEO peer group as a gym--it's not a spa or a hospital," says Davis, whose day job is CEO of Leadership Catalysts, an executive coaching firm in Minneapolis. "They all need to be working together."

Davis screens applicants to his groups to ensure that they'll be active participants--his roundtables are for doers, not just listeners. He asks applicants to reveal decisions they wish they could take back, to disclose what's working--and not working--in their businesses and to discuss where they'd like to be in three to five years.

"If they're not willing to talk about those things, we don't need them in the group," Davis says. "If you're not willing to roll up your sleeves, you're not going to be that helpful to other members of the group."

Under the Vistage format, Davis convenes his CEO groups for daylong meetings once a month; he also meets individually with each group member once a month. "World-class athletes have regular meetings with trainers," he explains. "Why shouldn't entrepreneurs?"

Six times a year he'll bring in a guest speaker. The meetings abide by rules of engagement meant to ensure a robust dialogue: No group members are direct competitors, and all discussions are kept strictly confidential.

Davis says CEO groups often serve as a salve when entrepreneurs find themselves singing the lonely-at-the-top blues. "As CEOs you're not always going to hear what you need to hear from your employees or your board," he says. "They come here because people will tell them what they need to hear, not just what they want to hear. They really like having an objective sounding board of CEOs whose only agenda is to help you and your business get better."

Ultimately, Davis says, the power of a CEO group stems from the willingness of its members to share their cumulative experience and expertise. "Collectively, there are no blind spots," he says. "Some are great at sales. Some are great at product development. Some are running global businesses. Some run a local family business. What you need to have is diversity in that peer group so that everybody has someone who has been where they are going."

Christopher Hann