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Identifying the Executive Sponsor:

Posted by James Massa on July 24, 2013
Posted in: General. Tagged: acquisitions, alliances, joint ventures, leadership, mergers, partnerships, Relationships, transformation. Leave a comment

One of the most delightfully poignant lessons on identifying the Executive Sponsor occurred early in my career when I was interviewing a person for an open sales position.  The final candidate was a young woman who had been involved in our inside sales organization.  She had been a super performer and was technically ready for the chance of an outside field sales position.  She’d be working next to one of the strongest field sales performers in the company who was not very happy about having to give up a portion of his territory to make room for the open position particularly to someone he considered to be a rookie.

As the interview progressed, she answered all my questions.  She gave a short product presentation.  She showed great skills in asking questions back to me.  It was a textbook positive interview.  However, when we got to the obvious end of the interview I was waiting for
something.  I was waiting for the all necessary “ability to close the deal”.  She had to ask for the order.  She had to ask for the job.  Without that ability, I was hesitant to take the risk of placing her next to the region’s top performer in a field sales position.

Our conversation concluded.  Interview exchanges simmered down to small talk.  I then sat silent, waiting.  Hoping she’d close the deal.  You know how you can just want something good for another person, particularly a younger person with great skills, personality, and lots of promise?   I sat.  She sat.  I smiled.  She smiled.  With regret, I had concluded she had failed the all important part of the interview.

Always ready to teach a promising up-and-comer something of value, I asked, “Do you know for what I am waiting?”  She smiled and said, “Yes”.  I was a bit surprised.  “What is that?” I inquired.  She answered, ‘You’re waiting for me to ask you for the job.”  I was stunned.  “Well, yes. You’re right!” Confused I asked, “So, why have you not asked for it?”  Again with a disarming smile she said in a matter-of-fact tone, “You can’t give it to me.  I still need to interview with your boss.”

Completely chagrined, and pleased, I laughed out loud and told her she was absolutely right.  I was not the “Executive Sponsor” in this situation.  I could not say “yes’ without her interviewing with my boss.  I thought I would teach her a lesson on sales about asking for the order.  Instead she had reminded me that knowing who can say “yes”, who is the Executive Sponsor, is an essential aspect of forming any Relationship.  Needless to say, she did get the job after the subsequent interview with my boss.  She also outperformed in the first year the seasoned veteran field sales person who had been so reluctant to give up a portion of his territory.

How did she determine who could say “yes”?  She simply asked.  She asked a variety of people in a variety of ways all in an effort to ensure she knew who was the one person who could say “yes” without having to get approval elsewhere in the organization.

Relationship Wheel – Six Key Areas of Relationship

Posted by James Massa on July 22, 2013
Posted in: General. Tagged: Acquisition, Alliance, joint venture, leadership, Merger, partnership, Relationship. Leave a comment

Relationship Wheel - Six Key Areas of Relationship

“Without Executive Sponsorship, there can be no Relationship”

The probability of success of a relationship can be determined and relationships can be successfully managed by applying 6 Timeless Principles to the 6 key areas of every relationship. The Relationship Wheel allows this to be viewed as a whole and the status of each area seen individually. The first area is Executive Sponsorship. It has a binary “success” or “failure” aspect to it.

There can be only 1 Executive Sponsor for each entity involved in a relationship. It is typically a person. It is not always the CEO or President, but often that is the case in medium to small companies or organizations. It can sometimes be a committee or a board, particularly in government environments. Although many may be able to say “no” to a relationship, the key characteristic of the Executive Sponsor is that they alone are able to say “yes” to a relationship.

Once a relationship is begun, the role of the Executive Sponsor is to cast vision and get the organization over any speed bumps that the normal operational executives or leaders working within their boundaries of authority cannot overcome.

The Executive Sponsor has a name, not a title. If you do not know the name of the Executive Sponsor, it is highly unlikely you have identified the Executive Sponsor. If you are pursing a relationship without executive sponsorship you are pursuing a relationship at the risk of wasting all the time and resources you are investing.

In the blogs following this week we’ll explore Executive Sponsorship, some of the ways to ensure it is achieved and maintained, and some of the ways to identify potential problems in this area of relationship

Avoiding Relationships that will Fail – 3Com Park and how the Internet was lost.

Posted by James Massa on July 19, 2013
Posted in: General. Leave a comment

Cisco Systems is a $40B global leader in internet technology.  However, did you know it was not destined to be such?  In fact, it was not likely to be the leader of the internet technologies at all until a relationship between two other companies failed?  Do you recognize the name “3Com Park”?  This is the name that was given to San Francisco’s famed Candlestick Park from 1995 until 2002 when a Silicon Valley technology company, 3Com, leased the rights to name that stadium.    It seems unnatural that the famed location of the San Francisco 49ers and, for you trivia fans, the location of the last Beatles concert, would be changed temporarily to that of a technology company.  Yet, the people of San Francisco’s never accepting the name change and their lack of acceptance symbolizes the long history of failed relationships that besieged 3Com and kept it from ever becoming the leader in the global internet.

There are Six Timeless Principles that affect six areas of every relationship which must be understood and managed in order for the relationship to be successful.  Like gravity effecting both small pebbles and large boulders alike, the Six Timeless Principles affect every relationship whether it is an interpersonal relationship or an organizational one or one between a city and a company (public/private).  [You can learn more about his in the book “Six Strand Weave” which you can purchase on this blog site.]  Those 6 areas are shown below in the Relationship Wheel™.

The failure of 3Com to attain its place as global leader of the internet comes from its inability to manage the area of relationship in the Relationship Wheel™ referred to as “Chemistry and Culture”.   The company that now dominates the global internet, Cisco Systems, is a master of doing such and, ironically, was named after the last part of the city name San FranCISCO.

If you are a technology or business person you may know that 3Com no longer exists and was purchased in whole by computer technology giant, HP, in November of 2009.  However, at one time 3Com was a start-up and innovative leader of networking technology.   What happened?

3Com was co-founded in 1979 by Robert Metcalfe, Howard Charney, Bruce Borden, and Greg Shaw.  Metcalfe had been primarily responsible for developing the networking technology called ethernet, a wire or cable based networking technology.  Two years later, in 1981 Judy Estrin and Bill Carrico (who are serial entrepreneurs having started 7 successful technology companies over 3 decades) started another company named Bridge Communication.  Cisco Systems was still a gleam in the eye of Stanford University professors Leonark Bosack and Sandy Lerner which didn’t exist until 1984, 3 years after Bridge Communications and 5 years after 3Com.

As 3Com and Bridge addressed advanced their technology offerings 3Com became the leader of network adaptor cards, something now built into every PC or Mac, while Bridge Communication shipped the first commercial router, something found in every home today that has more than 1 device on the internet.   In 1987 3Com formed a relationship with Bridge Communication.  In business terms the relationship was an acquisition.  In cultural reality it was a merger.  Regardless, it was thought by all in the computer and network industry that with the 3Com acquisition of Bridge, the fate of the future of the internet was securely in 3Com’s hands.

In fact, it was.  Yet, like a San Francisco 49ers’ full back rushing toward the goal line, the future success of 3Com dominating the internet was fumbled when that future was hit broadside by the failed relationship between 3Com and Bridge.  3Com and Bridge were still one company.  However, they did not achieve the Shared Vision that was before them when they were merged.

The area of Culture of any organization has many aspects.  However, 3 that are always present are

  1. How the organization makes decision
  2. How the organization handles finances, and
  3. How the organization communicates both internally and externally.

The combining of the different cultures of 2 organizations is anchored in these 3 areas.  Failure in any one of them results in failure in the combining of cultures, the “chemistry” of the relationship.

The combined company of 3Com and Bridge Communication was unable to navigate the Culture combination issues surrounding Decision Making.  While this relationship issue continued, there had been massive loss of people and tremendous internal disagreement on direction.  I spoke in 1991 with CEO, Eric Benhamou, who took over in 1990 after 3 years of the 3Com/Bridge “merger” languishing.  He was still struggling with defining the 3Com culture.  Ultimately, the marketplace had looked elsewhere for solutions and it found a company named Cisco Systems.   I had the pleasure to represent Bridge Communications prior to the failed relationship with 3Com, turned down opportunities to join 3Com in the early 90’s and joined Cisco Systems in 1992.  Later, as Executive and Chief Strategist for Global Government Solutions at Cisco Systems,  I had the opportunity to work with Judy Estrin when, ironically, she became Chief Technology Officer or Cisco Systems from 1998-2000.

The lesson is that in order for a relationship to succeed, the entities entering into relationship have to learn how to work well together in decision making, handling finances, and communicating.  Although this sounds like a script for any counseling of a married couple, take note that the Six Timeless Principles affecting the six areas of relationship effect all relationships the same way.  That includes organizational relationships, such as mergers, acquisitions, and alliances, as well as, interpersonal relationships.

Tomorrow’s blog will discuss how this same area of Culture was more successfully handled by Cisco Systems in over 72 acquisitions that were made in less than 5 years.

Avoiding Relationships that will Fail – Timing

Posted by James Massa on July 18, 2013
Posted in: General. Tagged: acquisitions, alliances, joint ventures, leadership, mergers, partnerships, Relationships, transformation. Leave a comment

As much as I want you to learn the Six Timeless Principles of forming successful relationships that transform, I want to start with something that is even more important  which you can do through knowing and using these timeless principles.  That is you can avoid the distraction and often times devastation of relationships that fail.

I have so often seen the devastating results in business, government, and non-profit organizations when the timeless principles of forming relationships are ignored.  Avoiding the mistake of attempting to form or continuing to pursue a relationship that is likely to fail can not only save you the cost of the investment, but as in interpersonal relationships can save you the one asset that you can never recapture if lost, time.   In business, the axiom is that “time is money”.  In non-profit, time is impact.

Why do bad relationships cause your company or organization to lose so much time?  The reason is that the time it takes for an organization to realize that a relationship on which they have embarked is ill-fated and unlikely to succeed is typically 18 months.  There is a 6 month honeymoon.   Then there is a period of about 6 months where the abrasions of a badly-fit relationship causes concern and actions are taken to respond to the issues.  Then there is another 6 months trying to get out of the relationship.  Many unsuccessful relationships lumber along consuming resources and time for 2 years or more.

Unsuccessful mergers often take 3 years before it is clearly recognized that there is a flaw in the relationship that is keeping the results from being what the organizations had envisioned when they first entered into the relationship.   Once the failure is recognized as one that cannot be corrected, there is  the time required to exit the relationship, which is much more difficult when assets have been mingled and financial investments made.

Some relationships are such that the entities are unable to excise themselves from the relationship.  Like one person being pulled down with another that is drowning, all organizations in the relationship can be pulled under the water line by internal turmoil, becoming starved for the oxygen of customer and operational focus, and suffer to the point of being greatly reduced in size, value or even suffer organizational death.

What is unavoidable in a failed relationship is the damage done by the loss of good people, the reduction of assets, and the loss of momentum in the market or area of focus for your organization.  In industry, competition moves in and takes market share.  In other sectors, the mission of the organization goes unfulfilled and people suffer.  Avoiding failed relationships can be of more value than predicting the ones that will have exponential success.

One tip to avoid forming an ill-fated relationship is the subtle, but significant characteristic of timing.    There is saying adapted from a line in the play The Tempest, by William Shakespeare: “Misery acquaints a man with strange bedfellows.” It is spoken by a man who has been shipwrecked and finds himself seeking shelter beside a sleeping monster.  Drawing from the circumstances that led to the quote regarding “strange bed fellows”, the best time to form a relationship is NOT when one is ship wrecked.  This is often when people seek the solace of a strange bed fellow.  Later they find they have become too close to a sleeping monster.

An organization that is in need of cash or has lost a key leader or has missed a curve in the competitive product or service offering and finds itself in need of a boost is often in a poor position to form a successful Relationship.  The value offered by each organization is clouded by temporary circumstances.  Yet many organizations choose this timing to attempt to form Relationships.  Successful Relationships are very rarely formed in such circumstances.  When one chooses to form a Relationship is important.

Leadership in Action

Posted by James Massa on July 17, 2013
Posted in: General. Tagged: acquisitions, alliances, joint venture, leadership, mergers, partnership, transformation. Leave a comment

Leadership and Transformation seem to headline the lists of current reading themes for those heading organizations regardless of whether the reader is involved in business, government, education, or non-profit.  However, what is the foundation of leadership in action?  One cannot transform unless one can lead.  One cannot lead unless someone who is in the position of follower is actually willing to follow the leader.  All the character, all the communication skills, all the following of laws, axioms or suggestions will be of no value unless a relationship can be formed between the leader and those the leader leads.  In short, you cannot transform, you cannot lead, you cannot impact your area of influence if you cannot form effective relationships.

This takes on even greater significance when you move from personal leadership to organizational leadership.  Whether it be an inter-department alignment,  or whether an organization’s partnership, alliance, acquisition, merger, or joint venture, with another organization,  the forces affecting all relationships are having their always present effect on each and every of the relationships between the organizations.   In order to accomplish a vision, one must form synergistic organizational relationships.

There are Six Timeless Principles to learn in order to manage the forces that affect the six key areas of all relationships.  Once understood and mastered, a leader can truly lead a person or an organization so as to impact their area of influence and accomplish a Vision.

I will be exploring each of these 6 areas of Relationships and the underlying Timeless Principles that affect them. The most underlying principle is that Leadership in Action is forming effective relationships.

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