Vol. 62: Strategic Finance Fundamentals: It’s time!

“If I am through learning, I am through.”– John Wooden

Some of you will remember – back in the day – the E. F. Hutton commercials that intoned, “When E.F. Hutton speaks, people listen.” (Some of you are probably wondering – who is E.F. Hutton in the first place?) These days, the Sage of Omaha has taken their place and has the ear of many. When I finished re-reading Warren Buffett’s Annual Letter to Shareholders, it resonated with similar messages in a number of recent articles.

What is growth?

From a Wall Street Journal article on March 25 discussing Conoco/Phillips’ future plans: “We asked ourselves, ‘What is growth?’” an executive said. “Growth could be viewed as just growing absolute volumes, but we felt that in this challenging environment what’s really important is to grow the value of the company.”

Or this one, from an article in the April 5 edition of Business Week about the Sears/K-Mart merger: “Simplistic analyses … ignore the fact that negative or below-market returns on invested capital are as harmful to creditors as to shareholders.”

Finally, in Warren Buffett’s shareholder letter, (more…)

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Read more about the article Vol. 60: Creating a Responsible Culture

Vol. 60: Creating a Responsible Culture

Build a Responsible CultureLast time, we discussed how to create a responsible culture where each individual accepts accountability for their actions and decisions.

In our discussion of this subject, we’ve ranged from the baseline of personal accountability to a broader organizational culture, to the battle-tested power of after action reviews.

So, if the power of an accountable organization is so obvious, why aren’t we all doing it?

Victimization has a stranglehold on American business

In “The Oz Principle,” a book by Craig Hickman (recently reissued in a revised and updated edition 10 years after its original publication), the overgrown roots of a victimization mentality is chronicled as one of the most corrosive forces in American business.

[pullquote]The man who complains about the way the ball bounces is likely to be the one who dropped it.~ Lou Holtz[/pullquote]

Mr. Hickman pulls no punches in deriding the plight of victimization that he believes has a stranglehold on American industry.

How many of these lines have you heard during your business career?

* “That’s the way we’ve always done it.”
* “That’s not my department.”
* “Someone should have told me not to do that.”
* “Why didn’t you ask me?”
* “Nobody’s followed up on this. It can’t be that important.”

[pullquote]Victimization is a corrosive force in American business[/pullquote]

It’s fodder for a Saturday Night Live skit, isn’t it? (more…)

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Read more about the article The Value of Checklists

The Value of Checklists

Checklists? Those lists I prepare each day and don’t help me get everything done – don’t really need to know more about them … or do you mean those checklists that airline pilots use to keep me from getting killed? Now, those I like.

Some of you will remember an earlier post in the GTD context about the value of checklists. Now comes the book, The Checklist Manifesto, inspired by issues found in operating rooms but expanded to the many areas where simple checklists are invaluable.

Checklists couldn’t be simpler. (more…)

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Read more about the article Accountability | Powerful After Action Reviews

Accountability | Powerful After Action Reviews

Man with sack over his headMany years ago when we lived in the Midwest, we became very good friends with a young couple down the street.

He was a fellow fraternity brother, from another college, but I remember him as a very capable physician with a unique ability to describe complex medical subjects in layman’s language.

After Action Reviews are for Learning NOT Blame

One day, he asked me if I’d like to go to work with him on Saturday. He’d show me around, we’d have lunch, hang out. He couldn’t leave for lunch, but he would bring along some homemade sandwiches, bologna with lots of ketchup, he said, and I could sit in his pathology lab as he performed an autopsy … and while he was cutting and sawing, we would enjoy our lunch together.

It was when he started laughing that I realized why my vision of an overloaded bologna sandwich, dripping with ketchup alongside an autopsy table, was kicking up a firestorm in my gut. I think that’s how many business executives view an After Action Review (AAR) — a gruesome business designed to relive the pain of failed projects.  (more…)

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