Pret a Manager

My friend James is the GM of the Pret a Manger (a chain of about 250 “everyday luxury” quick service restaurants in the UK and US) at 36th and 5th in Manhattan.  James recently won the President’s Award at Pret for doing an outstanding job opening up a new restaurant.  As part of my ongoing effort to learn and grow as a manager, I thought it would be interesting to spend a day shadowing James and seeing what his operation and management style looked like for a team of two dozen colleagues in a completely different environment than Return Path.  That day was today.  I’ll try to write up the day as combination of observations and learnings applied to our business.  This will be a much longer post than usual.  The title of this post is not a typo – James is “ready to manage.”

1. Team meeting.  The day started at 6:45 a.m. pre-opening with a “team brief” meeting.  The meeting only included half a dozen colleagues who were on hand for the opening, it was a mix of fun and serious, and it ended with three succinct points to remember for the day.  I haven’t done a daily huddle with my team in years, but we do daily stand-ups all across the company in different teams.  The interesting learning, though, is that James leaves the meeting and writes the three points on a whiteboard downstairs near the staff room.  All staff members who come in after the meeting are expected to read the board and internalize the three points (even though they missed the meeting) and are quizzed on them spontaneously during the day.  Key learning:  missing a meeting doesn’t have to mean missing the content of the meeting.

2. Individual 1:1 meeting.  I saw one of these, and it was a mix of a performance review and a development planning session.  It was a little more one-way in communication than ours are, but it did end up having a bunch of back-and-forth.  James’s approach to management is a lot of informal feedback “in the moment,” so this formal check-in contained no surprises for the employee.  The environment was a little challenging for the meeting, since it was in the restaurant (there’s no closed office, and all meetings are done on-site).  The centerpiece of the meeting was a “Start-Stop-Continue” form.  Key learning:  Start-Stop-Continue is a good succinct check-in format.

3. Importance of values.  There were two forms of this that I saw today.  One was a list of 13 key behaviors with an explanation next to each of specific good and bad examples of the behavior.  The behaviors were very clear and were “escalating,” meaning Team Members were expected to practice the first 5-6 of them, Team Leads the first 7-8, Managers the first 10, Head Office staff the first 12, Executives all 13 (roughly).  The second was this “Pret Recipe,” as posted on the public message board (see picture below).  Note – just like our values at Return Path, it all starts with the employee.  One interesting nugget I got from speaking to a relatively new employee who had just joined at the entry level after being recruited from a prominent fast food chain where he had been a store general manager was “Pret really believes this stuff — no lip service.”

I saw the values in action in two different ways.  The first was on the message board, where each element of the Pret Recipe was broken out with a list of supporting documents below it, per the below photo.  Very visual, very clear.

The second was that in James’s team meeting and in his 1:1 meeting, he consistently referenced the behaviors.  Key learning:  having values is great, making them come to life and be relevant for a team day-in, day-out is a lot harder but quite powerful when you get it right.

4. Managing by checklist.  I wrote about this topic a while ago here, but there is nothing like food service retail to demand this kind of attention to detail.  Wow.  They have checklists and standards for everything.  Adherence to standards is what keeps the place humming.  Key learning:  it feels like we have ~1% of the documentation of job processes that Pret does, and I’m thinking that as we get bigger and have people in more and more locations doing the same job, a little more documentation is probably in order to ensure consistency of delivery.

5. Extreme team-based and individual incentive compensation.  Team members start at $9/hour (22% above minimum wage that most competitors offer).  However, any week in which any individual store passes a Mystery Shopper test, the entire staff receives an incremental $2/hour for the whole week.  Any particular employee who is called out for outstanding service during a Mystery Shop receives a $100 bonus, or a $200 bonus if the store also passes the test.  The way the math works out, an entry level employee who gets the maximum bonus earns a 100% bonus for that week.  But the extra $2/hour per team member for a week seemed to be a powerful incentive across the board.  Key learning: team-based incentive comp is something we use here for executives, but maybe it’s worth considering for other teams as well.

6. Integrated systems.  Pret has basically one single software system that runs the whole business from inventory to labor scheduling to finances.  All data flows through it directly from point of sale or via manager single-entry.  All reports are available on demand.  The system is pretty slick.  There doesn’t seem to be much use of side systems and side spreadsheets, though I’m sure there are some.  Key learning: there’s a lot to be said for having a little more information standardized across the business, though the flip side is that this system is a single point of failure and also much less flexible than what we have.

7. Think time.  I’ve written a little about working “on the business, not in the business,” or what I call OTB time, once before, and I have another post queued up for later this summer about the same.  Brad Feld also very kindly wrote about it in reference to Return Path last week.  Working in retail means that time to work on IMPORTANT BUT NOT URGENT issues is extremely hard to come by and fragmented.  I suspect that it comes more at the end of the day for James, and it probably comes a lot more when he doesn’t have someone like me observing him and asking him questions.  But his “office” (below), exposed to the loud music and sounds and smells of the kitchen, certainly doesn’t lend itself to think time!  Key learning:  of course customers come first, but boy is it critical to make space to work OTB, not just ITB.  Oh, and James needs a new chair that’s more ergonomically compatible with his high countertop desk.

Years ago, I spent a few weekends working in my cousin Michael’s wine store in Hudson, NY, and I wrote up the experience in two different posts on this blog, the first one about the similarities between running a 2-person company and a 200-person company, and the second one about how in a small business, you have to wear one of every kind of hat there is.  My conclusion then was that there are more similarities than differences when it comes to running businesses of different types.  My conclusion from today is exactly the same, though the focus on management made for a very different experience.

Thanks to James, Gustavo, Orlanda, Shawona, and the rest of the team at the 36th & 5th Pret for putting up with the distraction of me for the bulk of the day today — I learned a lot (and particularly enjoyed the NYC Meatball Hot Wrap) and now have to figure out how to return the favor to you!

Book Short:  Like a Prequel to My Book

How to Start a Business, by Jason Nazar, CEO of our client Docstoc, is a great and quick (and free) eBook that feels a lot like a prequel to my book Startup CEO:  A Field Guide to Scaling Up Your Business (original outline here). My book is about scaling a business once you’ve started it.  Jason’s book is a really practical guide to starting it in the first place.

The thing that’s particularly good about this book is that it’s as much a resource guide as it is a book.  At the end of each of its 24 chapters (and within them as well), Jason adds a series of external links to other resources, from videos to checklists to templates.  The book answers a lot of really practical questions that are easy for product-focused entrepreneurs to gloss over or ignore, from corporate structures to insurance, from trademark registration to pitching VCs, from payroll to tax planning.

It’s great to see so much more being written for entrepreneurs these days.  Ash Maurya’s Running Lean: Iterate from Plan A to a Plan That Works (which I blogged about last week) is another related book that focuses on how to bring a new product to market.  But Jason’s eBook is a must read for anyone in TechStars or any accelerator program, or anyone contemplating starting a business.

Triple Book Short: For Parents

People who know me know that I am a voracious reader.  Among other things, I probably read about 25-30 books per year — and I wish I had time for more.  I probably read about 50% business books, which I blog about.  Most of my other reading is in a couple specific topical areas that interest me like American History and Evolutionary Biology.  Over the last few years, Mariquita and I have discovered and read a handful of books about parenting that have been foundational for us as we work deliberately at raising our three kids, and two of them have roots in some of the same philosophies, psychologies, and research as a lot of contemporary business literature.  So for parents everywhere, I thought I’d devote a book short to these three books.

The first one is Healthy Sleep Habits, Happy Child, by Marc Weissbluth.  Having kids who sleep long and well has been the foundation for us to have a well functioning household.  Well rested kids are much easier than tired ones.  Well rested parents are more effective.  We have found that the principles in this book have consistently served us well on this front.  All three of our kids more or less slept through the night starting at 6-8 weeks and have been great sleepers since then.

Unconditional Parenting, by Alfie Kohn is basically, for those in the HR/OD field, “Action/Design” for parenting.  The principles in this book have applied to kids as young as 1 year old, and the examples in the book go through the teenage years.  Our main learnings from this book have been around moving away from more traditional forms of reward, punishment, and control and towards helping our kids make decisions as opposed to follow directions by understanding our kids perspective on things, working to help them articulate their own understanding of a situation, and helping them see the perspective of others.

Raising an Emotionally Intelligent Child, by John Gottman, builds on a lot of the same underlying work that Daniel Goleman writes about in articles and business books around Emotional Intelligence (in fact, Goleman wrote the forward to this book as well).  The book lays out a process the author calls Emotional Coaching to help kids learn empathy and problem solving by showing kids empathy, teaching them to understand and label their own emotions, and working with them to craft solutions on their own, but doing the whole process in a very calm and 1:1 manner.  One of my favorite parts of the book, which is so unusual in business books and any kind of self-help book, is that the author has a whole section devoted to when NOT to use this process.

Parenting is a very personal thing, and there isn’t a right or wrong way to go about it.  I have a friend who is fond of saying that parenting is a little bit like the way comedian George Carlin used to describe “other drivers” on the highway.  People who are going slower than you are “a**holes” and people who are going faster than you are “crazy.”  Only you drive the “right way.”  So true, but if you’re a parent, there’s no more important thing to be deliberate about practicing than parenting, and these books have been a good practice guide for us.  We have found a full read of these three books to be very helpful to us in our work with our kids, and we have been very lucky that our main babysitter has been aligned with us on philosophy (and has been willing to read these books with us).

Book Short: Wellness Redefined

Well Being: The 5 Essential Elements, by Tom Rath and Jim Harter from the Gallup organization, is a solid read and incredibly short. It’s one of those books that’s really a long article stretched and bound. But it goes beyond the basics of what I expected, which was something like “having healthy employees cuts down on absenteeism” and has a couple great elements of food for thought for leaders looking to build cutting edge and uber-productive organizations. It comes out of the same general body of research as four other very strong books I’ve written about over time — First, Break all the Rules, Now, Discover Your Strengths, 12: The Great Elements of Managing (book, review), and Go Put Your Strengths to Work (book, review).

The authors define well being as having five separate components:  career well being, social well being, physical well being, financial well being, and community well being. Ok, that makes sense, but the three most interesting points the book made from my perspective were:

1. Well being isn’t just about one of these five elements – it’s about all five, and how they interact together, and how the workplace can support all of them
2. Achieving long-term objectives around well being requires finding short-term incentives that drive the same behavior in more obvious and immediate ways, as most long-term well being drivers require short term sacrifice. So figure out how to make eating a salad better for you not just years from now but TODAY (you’ll have more energy after lunch than if you eat that cheeseburger), for example
3. Financial well being isn’t something a lot of companies focus on, and maybe it should be. Particularly in our industry we hire knowledge workers and assume therefore that they’re smart and educated about everything…but maybe there are ways that the company can support financial well being that aren’t necessarily obvious

The book is full of stats from the underlying research, most of which show that most people are shockingly unhappy, and that most workplaces dont do enough to support employee wellness. The book also notes, as is the case with most things, that promoting well being among employees requires more than just setting up programs. Doing it right requires constant vigilance, measurement, and follow up. At Return Path, we do a bunch of programs along the lines suggested by the book (but can and should do more!), but we’ve never been rigorous with follow up. Good food for thought.

Note there is also a free whitepaper on the economics of well being that you can download here.  The white paper is ok…but not nearly as interesting as the book, and note that it does not substitute for the book.  Thanks to my colleague Cathy Hawley for this book!

Book Short:  Continuing to make “sustainability” a mainstream business topic

The Big Pivot: Radically Practical Strategies for a Hotter, Scarcer, and More Open World, by my friend Andrew Winston, is a great book.  It just got awarded one of the Top 10 business books of 2014 by Strategy+Business, which is a great honor.

Andrew builds nicely on his first book, Green to Gold:  How Smart Companies Use Environmental Strategy to Innovate, Create Value, and Build Competitive Advantage (post, book link) (and second book, which I didn’t review, Green Recovery), as I said in my review of Green to Gold, to bring:

the theoretical and scientific to the practical and treat sustainability as the corporate world must treat it in order to adopt it as a mainstream practice — as a driver of capitalistic profit and competitive advantage.

Andrew’s central thesis, with plenty of proof points in the book for our planet of 7 Billion people, rapidly heading to 9-10 Billion, is this:

Whether you take a purely fiscal view of these challenges or look through a human-focused lens, one thing is clear: we’ve passed the economic tipping point. A weakening of the pillars of our planetary infrastructure— a stable climate, clean air and water, healthy biodiversity, and abundant resources— is costing business real money. It’s not some futuristic scenario and model to debate, but reality now, and it threatens our ability to sustain an expanding global economy… If this hotter, scarcer, more transparent, and unpredictable world is the new normal, then how must companies act to ensure a prosperous future for all, including themselves?

Andrew’s writing is accessible and colorful.  The book is full of useful analogies and metaphors like this one:

Climate can also seem easy to write off because the warming numbers don’t sound scary. A couple degrees warmer may sound pleasant, but we’re not really talking about going from 75 to 77 degrees Fahrenheit on a nice spring day. As many others have pointed out, the right metaphor is a fever. Take your core body temperature up one degree, and you don’t feel so great. Five degrees, and you’re sick as a dog. Ten degrees, and you’re dead.

The book also does a really nice job of looking at the externalities of climate change in a different way.  Not the usual “I can pollute, because there’s no cost to me to doing so,” but more along the lines of “If I had to pay for all the natural resources my business consumes, I would treat them differently.”

Some of Andrew’s points are good but general and maybe better made elsewhere (like the problems of short-termism on Wall Street), but overall, this book is a great think piece for all business leaders, especially in businesses that consume a lot of natural resources, around how to make the challenge of climate change work for your business, not against it.

Two things occurred to me during my read of The Big Pivot that I think are worth sharing for the people in my life who still don’t believe climate change is real or threatening.  The first is Y2K.  Remember the potentially cataclysmic circumstance where mission critical systems all around the world were going to go haywire at midnight at the turn of the millennium?  The conventional wisdom on why nothing major went wrong is that society did enough work ahead of time to prevent it, even though the outcomes weren’t clear and no one system problem alone would have been an issue.  I was thinking about this during the book…and then Andrew mentioned it explicitly towards the end.

The second is something I read several years ago in my personal news bible, The Economist.  I couldn’t find the exact quote online just now, but it was something to the effect of “Even if you don’t believe man created climate change, or that climate change is real and imperiling to humanity and can be fixed by man, the risks of climate change are so great, the potential consequences so dire, and the path to solve the problem so lengthy and complex and global…it’s worth investing in that solution now.”

Let’s all pivot towards that, shall we?  If you want to download the introduction to the book for free, you can find it on Andrew’s web site.  Or for a three-minute version of the story, you can watch this whiteboard animation on YouTube.

Book Short: Plain Talk

An HR rock star I met with recently told me that “You can say anything you want to your people, as long as it’s true,” which of course is great advice.  Plain Talk: Lessons from a Business Maverick (book, kindle), by Ken Iverson, the long-time CEO of Nucor, pretty much embodies that.  If you’re not familiar with Nucor, it’s a steel company – right, steel – and the most successful one of the last 50-75 years, at that.  You may think an industrial company like this offers no lessons for you.  If so, you are wrong.

The reason Nucor has been so successful, if you believe their long time leader, is that they run the people side of their business differently than most companies like them.  Reading this book from the perspective of a knowledge worker business CEO was particularly interesting, since I had to transform my frame of reference a bit (and do a little mental time travel as well) in order to understand just how revolutionary Nucor’s practices were at the time.

But then I realized – they’re still revolutionary today.  How many companies – even the most progressive ones – don’t have performance reviews because they don’t need them in order to create a high performing environment?  Companies that spend a good percentage of their time and energies thinking about how to get their employees to do their best work, as opposed to focusing only on the goals of the business, do better than those who don’t.  It doesn’t matter what industry you’re in.  As Patrick Lencioni would say, you can outbehave the competition.

Plain Talk is a really short book, and a good, authentic read if you’re a leader who cares about your people and wants to learn a few nuggets here and there from one of the 20^th century masters of that discipline.  Anyone that can link a high degree of delegation to authority has a story worth telling.

Book Short:  On The Same Page

Being on the same page with your team, or your whole company for that matter, is a key to success in business.  The Four Obsessions of an Extraordinary Executive, by Patrick Lencioni, espouses this notion and boils down the role of the CEO to four points:

1. Build and maintain a cohesive leadership team
2. Create organizational clarity
3. Overcommunicate organizational clarity
4. Reinforce organizational clarity through human systems

Those four points sound as boring as bread, but the book is anything but.  The book’s style is easy and breezy — business fiction.  One of the most poignant moments for me was when the book’s “other CEO” (the one that doesn’t “get it”) reflects that he “didn’t go into business to referee executive team meetings and delivery employee orientation…he loved strategy and competition.”  Being a CEO is a dynamic job that changes tremendously as the organization grows.  This book is a great handbook for anyone transitioning out of the startup phase, or for anyone managing a larger organization.

I haven’t read the author’s other books (this is one in a series), but I will soon!

Book (Not So) Short:  Raise Your Hand If You’re Sure

I couldn’t get the catchy jingle from the 80’s commercial for Sure deodorant (you remember, the one with the Statue of Liberty at the end of it – thanks, YouTube) out of my head while I was reading the relatively new book, Confidence: How Winning Streaks and Losing Streaks Begin and End.  Written by HBS professor Rosabeth Moss Kantor, Confidence is one of the few business books I’ve read that’s both long and worth reading in full.

The book has scores of examples of both winning and losing streaks, from sports, business, politics, and other walks of life, and it does a great job of breaking down the core elements that go into creating a winning streak or turnaround (Accountability, Collaboration, Innovation).  Kantor also puts a very fine point on the “doom loop” of losing streaks and just how hard it is to turn them around.  The book also has a good crisp definition of why winning streaks end — arrogange, anyone? — and has consistent, but not preachy recipes for avoiding pitfalls and driving success.  All in all, very inspirational, even if many of the roots of success lie in well-documented leadership qualities like those expressed in Jim Collins’ Built to Last and Good to Great.  The book is good enough that Kantor can even be forgiven for lauding Verizon, probably the most consistently awful customer service company I’ve ever dealt with.

But even more of the roots of success and disappointment around streaks are psychological, and these examples really rang true for me as I reflected back on our acquisition of the troubled NetCreations in 2004.  That company was in the midst of a serious slump, a losing streak dating back to 2000, at the peak of the original Internet boom.  Year over year, the company had lost revenues, profits, customers, and key personnel.  Its parent company saw poor results and set it into the doom loop of starving it for resources and alternating between ignoring it and micromanaging it, and when we acquired the business, we found great assets and some fantastic people (many of whom I’m proud to say are still with us today), but a dispirited, blame-oriented, passive culture that was poised to continue wallowing in decline.

I can hardly claim that we’ve turned the business around in full, or that I personally made happen whatever turnaround there has been, but I do think we did a few things right as far as Kantor and Confidence would see it.  Her formula for a turnaround (Espouse the new message, Exemplify it with leadership actions, Establish programs to systematically drive it home throughout the organization) is right in line with our philosophy here at Return Path.

First, we accelerated the separation and autonomy of a fledgeling NetCreations spin-off unit, now our Authentic Response market research group, and let a culture of collaboration and innovation flourish under an exceptionally talented leader, Jeff Mattes.

But that was the easy part (for me anyway), because that part of the business was actually working well, and we just let it do its thing, with more support from HQ.  The turnaround of the core list rental and lead generation business of NetCreations, the original Postmaster Direct, was much tougher and is still a work in progress.  In the last six months, we’ve finally turned the corner, but it hasn’t been easy.  Even though we knew lots of what had to be done early on, actually doing it is much harder than b-school platitudes or even the best-written books make it seem.

The one thing that Kantor probably gives short shrift to, although she does mention it in passing a couple times, is that frequently turnarounds require massive major amounts of purging of personnel (not just management) to take hold.  As one of my former colleagues from Mercer Management Consulting used to say, “sometimes the only way to effect Change Management is to change management.”  Sometimes even very talented people are just bogged down with baggage — the “ghost of quarters past” — and nothing you do or say can break that psychological barrier.

Boy, have we learned that lesson here at Return Path the hard way.  I’m extremely grateful to our team at Return Path, from the old RP people who’ve seen it all happen, to the old NetCreations people who are thriving in the new environment, to the new blood we’ve brought in to help effect the turnaround, for playing such important roles in our own Confidence-building exercises here.  And I’m super Confident that 2007 will be the year that we officially turn the old NetCreations/Postmaster losing streak into a big, multi-year winning streak.

Anyway, I realize this may redefine the “short” in book short, but Confidence is without question a good general management and leadership read.

Good Meeting Behavior

I've been in meetings with large groups of people at big companies where they're all on laptops the whole meeting, no one makes any eye contact with the speaker/facilitator, and it's hard to get a pulse out of the group as a result.

I almost entirely stopped bringing laptops and smartphones into business meetings a few years back.  There's nothing I find more irritating than when other people are using them when it's my meeting.  Even if they're taking notes, I never know if they're really taking notes or sneaking a peek at email.  And in my experience, people who are on laptops and phones in meetings, whatever they're doing on those devices and however good they are at multi-tasking, aren't paying as close attention to the meeting as the other people in the room. 

What I do instead is take notes on paper and spend 2 minutes after the meeting handling whatever data entry I need to handle on my computer.

I was very excited to see Brad's post about how he is now going to take paper notes in Board meetings rather than use his smartphone and be tempted to check email (and otherwise be distracted).  Everyone should do this for every meeting.  Board meetings are important examples, but they're not alone.  It's just good meeting behavior.  If you have other things to do, step out of the meeting and do them.

Book Short:  Be Less Clever

In Search of the Obvious: The Antidote for Today’s Marketing Mess, by Jack Trout, is probably deserving of a read by most CEOs.  Trout at this point is a bit old school and curmudgeonly, the book has some sections which are a bit repetitive of other books he and his former partner Al Reis have written over the years, he does go off on some irrelevant rants, and his examples are a bit too focused on TV advertising, BUT his premise is great, and it’s universally applicable.  So much so that my colleagues Leah, Anita, and I had “book club” about it one night last week and had a very productive debate about our own positioning and marketing statements and how obvious they were (they need work!).

The premise in short is that, in advertising:

Logical, direct, obvious = relevant, and

Entertaining, emotional = irrelevant

And he’s got data to back it up, including a great case study from TiVo on which ads are skipped and not skipped – the ones that aren’t skipped are from companies like Bowflex, Hooters, and the Dominican Republic, where the presentation of the ad is very direct, explanatory of the product, and clear.  His reasons why advertising have drifted away from the obvious are probably right, ranging from the egos of marketing people, to CEOs being to disconnected from marketing, to the rise in importance of advertising awards, and his solution, of course is to refocus on your core positioning/competitive positioning.

It is true that when the only tool in your box is a hammer, everything starts to look a bit like a nail, but Trout is probably right in this case.  He does remind us in this book that “Marketing is not a battle of products. It is a battle of perceptions”– words to live by.

And some of his examples of great obvious advertising statements, either real or ones he thinks should have been used, are very revealing:

• Kerry should have turned charges that he was a flip-flopper in 2004 around on Bush with the simple line that Bush was “strong but wrong”
• New Zealand: “the world’s most beautiful two islands”
• The brilliance of the VW Beetle in a big-car era and “thinking small”
• Johnny Cochrane’s winning (over)simplification of the OJ case — “If the glove doesn’t fit, you must acquit”
• BMW is still, 30 years later, The Ultimate Driving Machine
• “Every day, the Kremlin gets 12 copies of the Wall Street Journal. Maybe they know something you don’t know.”

If you are looking for a good marketing book to read as a refresher this year, this one could be it.  And if you’re not a very market-focused CEO, this kind of thinking is a must.

And for the record, the library of books by Trout and/or Reis (sometimes including Reis’ daughter Laura as well) that I’ve read, all of which are quite good, is:

• Positioning: The Battle for Your Mind – the original – a brilliant, short, classic
• The New Positioning (link, post) – good refresher on the original, gets into repositioning
• Marketing Warfare –
• The Fall of Advertising and the Rise of PR – excellent but pre-social media
• The 22 Immutable Laws of Branding –
• The 22 Immutable Laws of Marketing: Violate Them at Your Own Risk! –
• Bottom-up Marketing –
• Differentiate or Die: Survival in Our Era of Killer Competition –
• In Search of the Obvious: The Antidote for Today’s Marketing Mess – the current book

Half the Benefit is in the Preparation

This past week, we had what has become an annual tradition for us – a two-day Board meeting that’s Board and senior management (usually offsite, not this year to keep costs down) and geared to recapping the prior year and planning out 2009 together.  Since we are now two companies, we did two of them back-to-back, one for Authentic Response and the other for Return Path.

It’s a little exhausting to do these meetings, and it’s exhausting to attend them, but they’re well worth it.  The intensity of the sessions, discussion, and even social time in between meetings is great for everyone to get on the same page and remember what’s working, what’s not, and what the world around us looks like as we dive off the high dive for another year.

The most exhausting part is probably the preparation for the meetings.  We probably send out over 400 pages of material in advance – binders, tabs, the works.  It’s the only eco-unfriendly Board packet of the year.  It feels like the old days in management consulting.  It takes days of intense preparation — meetings, spreadsheets, powerpoints, occasionally even some soul searching — to get the books right.  And then, once those are out (the week before the meeting), we spend almost as much time getting the presentations down for the actual meeting, since presenting 400 pages of material that people have already read is completely useless.

By the end of the meetings, we’re in good shape for the next year.  But before the meetings have even started, we’ve gotten a huge percentage of the benefit out of the process.  Pulling materials together is one thing, but figuring out how to craft the overall story (then each piece of it in 10-15 minutes or less) for a semi-external audience is something entirely different.  That’s where the rubber meets the road and where good executives are able to step back; remember what the core drivers and critical success factors are; separate the laundry list of tactics from the kernel that includes strategy, development of competitive advantage, and value creation; and then articulate it quickly, crisply, and convincingly. 

I’m incredibly proud of how both management teams drove the process this year – and I’m charged up for a great 2009 (economy be damned!).