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Strategy - The Fine Margins Between Success and Failure

Mitchell Phoenix - Monday, February 20, 2012

2012 is an Olympics year. Every competitor will have trained hard, worked on their mental fortitude and made sacrifices. The gold medalists will separate themselves by a millisecond, a centimeter, a point. Such are the fine margins of victory. Where will those victories be won? In the preparation.

2012 will also be a challenging year for many businesses. Continuing economic uncertainty and slow growth will ask questions of every organization's existing strategy. 

Customers will be key to maintaining momentum. Understanding the impact of the financial crisis on their behavior and their decisions will be crucial: how do we retain them, work with them and find new customers in such a testing environment? Here too the answer lies in the quality of our preparation: how well our strategy is constructed and executed. 

In both the sporting and the business worlds, attention to detail creates success and that success may be secured by a fine margin. Just one detail can be the difference between winning and losing, making a profit or a loss. The quality of our strategy and how well we build it into the day-to-day execution of the business will determine how fully we master those crucial details.

Over the course of this year we will bring you a series of short articles exploring the role of strategy and its relationship with results, reputation, engagement, responsiveness, creativity, efficiency, sustainability and purpose: Securing the Future.

Best wishes

James Donnelly
Managing Director, Mitchell Phoenix USA

click here to see our Winter Newsletter

Communicating Strategy and Vision is the Number One Communication Priority for Leaders

Mitchell Phoenix - Thursday, January 19, 2012

For those of you who have not seen them in our newsletter, here are James Donnelly's thoughts on the year ahead...

“Christmas is coming, the geese are getting fat

Please put a penny in the old man's hat

If you haven't got a penny, a ha'penny will do

If you haven't got a ha'penny, then God bless you!”

The holiday season is upon us and it's a time for good cheer. People have worked hard in 2011 during some of the toughest economic conditions in history. Despite all the endeavour, how many businesses have a ha’penny to show for it?

Leadership is only needed when times are tough and the main challenge in a period of uncertainty is to stay connected with strategy. Difficult market conditions easily send companies into reactive mode. In an HBR article from 2008, “Can you say what your strategy is?”, its findings revealed that most executives cannot articulate the objective, scope, and advantage of their business in a simple statement. How can anyone lead with purpose without a concrete fix on the future?

Communicating strategy and vision is the number one communication priority for leaders. Every decision and action should come from them and relate back to them. Context and reference to high level guidelines make a substantial difference to people’s ability to deal with pressure and change. Too many businesses have lofty statements and aspirations for the future that leave too wide a gap in communicating what is meant at a functional and personal level. Competitive difference comes from the precision of an organization’s thinking through an empowered workforce absolutely clear of its purpose.

While 2012 will be equally challenging for business, the opportunity for leaders to boost confidence and strengthen resolve lies in engaging the organization in articulating core focus beyond cost saving and preserving margins. The challenge is to transform prudent management practice into future focused, growth oriented, creative precision thinking. This will involve every level of an organisation becoming more connected with their customers and their raison d’etre.

The process of reconnecting with purpose is hugely satisfying and rewarding for all involved. A great way to kick off the New Year.

If we didn’t have a ha’penny this year then as Tiny Tim said, "God bless us every one!" Here’s to having a penny to put into the old man’s hat next Christmas. Happy Holidays to all.

Best wishes
James Donnelly
Managing Director, Mitchell Phoenix USA

What "Business Results" Really Means

Mitchell Phoenix - Thursday, October 20, 2011


You’ve decided to do some management training with your people. The business case is clear and the necessary budget has been secured. If you don’t spend the money in the next couple of months it will disappear, so you sit down to make your choice.

You think that with stronger management skills you and your people will behave more effectively on an individual, team and organizational basis. This would be a fantastic business result. You search the internet for management training companies which can deliver business results… and to your surprise, everyone can. Every provider you look at shouts back at you about the “results” they create for their clients, like a flock of parrots that has learned to say just one word.

In fact, in the world of management development “results” has a range of meanings:

1. At the basic level, the “result” is that everyone who attended a day of training rated it highly on a feedback sheet – eg. as “very good” or “outstanding”. People had a good time, nobody tried to climb out of the windows.

2. The next type of “result” is that everybody learned something on the course. They learned what personality type they are, or that they annoy a colleague when they don’t turn on their out of office message. The link between the learning and the workplace is hazy, or based on firm promises to put an action plan in place one delegates get back to the their desks. Six months down the line, people are still annoying their colleagues by not turning on their out of office messages. Perhaps unexpectedly, much of the input on MBA courses falls into this category: interesting but not used.

3. Short-term behavioural change is the next category of “result”. Here, people adopt a new behaviour and stick to it for a while. For situations where longevity of application is not a factor, “results” in this area are useful.

4. Long-term behavioural change is the pinnacle of “business results”. This is rare, requiring all of the other three preceding “results” to be in place (no one will change their behaviour if the course designed to do this is making them want to climb out of the window). Along with these, any course operating at this level will create a deep understanding of management principles, such that they can be applied to any situation a manager faces. Managers take decisions with this new frame of reference in mind, and choose new, more effective behaviour now and in the long-term.


Next month: the clues that show which of the four types of result above a provider can deliver.


Why Companies in High Growth Use Mitchell Phoenix

Mitchell Phoenix - Monday, September 05, 2011

In discussion with a client the other day, he remarked on how many of Mitchell Phoenix's long-standing relationships are with companies in high growth; some of which have become household names during the 20 years we have been doing business with them. What is it about our approach and the results we create that suits organizations experiencing rapid change so well? Here is the answer.... click to read on

The Importance of Diversity in Decision Making

Mitchell Phoenix - Thursday, August 18, 2011

Lord Davies' report, Women on Boards, has highlighted a growing body of evidence linking the number of women on the senior management team of an organization with the strength of its performance. The following article explores why this might be the case, and what the implications are for decision making.

Click here to read "The Importance of Diversity in Decision Making"


The 10 Most Common Pitfalls in Running a Business

Mitchell Phoenix - Wednesday, June 01, 2011

If you are searching for factors that separate successful businesses from the herd, sooner or later you will seek out a meeting with a business transformation specialist. Business transformation specialists make their career in exactly that: they arrive at companies which are performing sub-optimally, and guide those businesses to greater profit and achievement. For organizations which are experiencing difficulties, transformation specialists are ambulance, fire service, analyst, strategist, psychologist and motivator, all rolled into one.

When Ross Stuart arrives at an assignment, what does he usually find? “Almost all of the problems I find in one business I will have seen before on other assignments,” says Ross, “in fact the pitfalls management fall into are the same both within and across industry sectors.”

Here are the ten management pitfalls Ross encounters most often: 

The Ten Most Common Pitfalls in Running a Business

  1. Ineffectual, poorly trained senior management
  2. Lack of leadership and robust governance: no clear direction and support from the top
  3. Senior management in denial
  4. Poor quality
  5. Narrow customer base
  6. Poor financial systems
  7. Poor communication with the employees
  8. Poor stock control
  9. Little or no marketing expertise, a depleted and demotivated sales force
  10. High overheads
Ross encounters these pitfalls so often that he has written an ebook detailing how he detects and deals with these issues, and what you can do to deal with them in your business. Click here to request a free copy of the ebook.



There is no Planet B – We need some Action Heroes

Mitchell Phoenix - Monday, April 18, 2011


In September last year James Donnelly, President of Mitchell Phoenix USA, attended BizClimate 2010. In an article which first appeared in Mitchell Phoenix's Autumn Newsletter, he summarizes his thoughts on the event, and what will be required of managers in the future.

Leading is no longer enough.


I attended BizClimate 2010 last week, part of a series of conferences taking place at New York Climate Week headlined by the Bill Clinton Initiative (only $30,000 a ticket). Climate Week revolved around the opportunities for business in investment, cost saving and the creation of climate wealth.

BizClimate 2010 used Moore’s Law of Sustainability as a vision for the way in which business would drive the carbon economy in the future. Gordon Moore was a founder of Intel and changed the face of the technology world when he predicted that the density of semi-conductors on a chip would double every year.

By setting this expectation, it drove investment leading to innovation. In the same way the conference set out to explore the potential in exponential growth of green energy management and solutions.

The core themes explored by expert panels were Innovation, Investment, Expectation and Leadership. What was reinforced over the course of the event was a consensus that action was needed, that governments were loath to take the lead and that any advancement towards a ‘better world’ lay in the hands of business leaders.

We are at the start of a pioneering age with potentially greater significance than the industrial revolution. There are fortunes to be made. So what’s holding it up?

There is no measurement. No price on carbon, no visibility on regulation, no obvious clean energy horse to bet on. Perceived risk is the barrier. Everyone is waiting for someone to break from the pack. We don’t want the dot.energy race to become another dot.com farrago.

It takes courage to decide on a new course of action. It takes strength to stand your ground and deliver change. It requires inner conviction and determination to succeed against the status quo. The world needs leaders who believe in a cause, who can communicate a vision and inspire others to great heights.  We need action heroes.

What is the difference between an action hero and a leader? I think, today, ‘manager’ is the new leader and leader has now become ‘action hero’. It is no longer enough to lead.

Generating new action is the route to change, learning and growth. The term ‘leader’ has lost connection with urgency, decisiveness and a link with future security and prosperity. When you see an action hero you are reminded of what is important. They are a walking billboard for direction and purpose, immediately inspiring a sense of confidence, energizing those around them.

Inertia is the enemy, generated by habit, fear and greed. Time for Sir Isaac Newton’s Laws of Motion! Action orientation is a commitment to change and a commitment to the future that generates results, produces measurement and reinforces progress that is being made.

Sustainability, climate wealth, green energy, carbon markets will figure large in all our futures. Leaders are not doing enough. There is no Planet B. Where are the action heroes?


Who should Sponsor a Leadership Development Project?

Mitchell Phoenix - Tuesday, April 12, 2011


Mitchell Phoenix' Managing Director Kevin Yates recently published the ebook, 
How to Build a Successful Leadership Development Project in which he outlines the central factors required if a leadership program is to yield real return on investment. In this extract, he explores who the sponsor of the project should be...



It is quite likely that an incoming senior executive has identified the opportunity for an improvement in the leadership skills of the management group. This may be a promoted MD, CEO or someone brought in with recent experience of greater leadership capability in another organisation (competitor perhaps?) This sponsorship is the best possible start point for gathering support from the board and will be a natural step to engage the wider management population. 

Three levels of management need to be converted for the culture change to take effect.  This means CEO, board and senior operational management.  In a large organisation you will also need to engage the best of the next tier down to make it complete and secure.  After that, leadership by example and sweeping demand for better practice will permeate the business.  In the longer term, standards of behaviour have to be rigorously applied and defended.  (This latter effect will be determined by the quality of leadership thinking delivered by the development project itself).

What happens when only HR or a more junior group have identified the need? Clearly we have to build more support into the senior operational areas and the CEO has to be sold on this need.  By highlighting concrete examples of sub-optimal behaviour; raising questions about succession, ownership of goals, poor meeting management, and crisis culture we can lay the groundwork for a decision to be made.  In addition, issues of falling standards of recruitment and greater attrition can be flagged.  Lack of choice and quality in promotions and honest performance review will further bring the messages home.  Leadership profiling tools can be brought to bear to display, empirically, the opportunities for personal growth.

There has to be acceptance of this need at the highest levels.  Ready & Conger, in their analysis of why leadership development projects fail, identify lack of ownership as the principle pathology.  Their solution, everyone should own it, is long on good advice but short on how to achieve it. In this article, I discuss the 5 steps necessary to build a successful leadership development project (click to read).


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