Q: What sort of restaurant would you open if you had the chance?
David: The type of restaurant I would open would focus on a blend of American and continental tastes with a limited eclectic menu in a gourmet setting. The emphasis would be on seafood and pasta dishes both complimented with rich and savory sauces. I would want the restaurant to be small in size accommodating between 50 and 75 people, and it would provide what I feel never goes out of style, which is supreme customer service. Of course, to be most successful, I would surround myself with a few key people who are knowledgeable of the restaurant business, and first and foremost, a head chef who shares my deep appreciation for gourmet foods and exacting presentations.
When it comes to developing an effective Corporate Trade Compliance Department (CTCD), one of the foremost challenges is dealing with the “Status Quo Police.”This thought sparked into my mind as I read Adam Hartung’s article in the September 8, 2010 issue of Forbes.com entitled, “Fire The Status Quo Police.”
Hartung describes how a senior executive philosophy within a company can exist that will resist change and create an immense debilitating effect on the financial and operational performance.It’s important to keep this in mind if you are working to build or develop a CTCD within your company.After all, the CTCD is not a profit center, so it tends to become an easy target for the refusal of resources to meet their commitments.However, if you focus your approach on three key areas, your ability to achieve the best results will be heightened.
1.Work to obtain CEO buy-in of the Trade Compliance Department.The more convinced the CEO is of the importance of the trade compliance area to the company, the more he or she will support the necessary initiatives.Develop presentations that highlight how compliance can reduce business risk, enhance corporate ethics, and improve the supply chain operations.Stress the importance not just for CEO buy-in of the program but for all levels below the CEO as well.Vertical support within an organization is a critical component of a CTCD, especially when you are undergoing a formal review by Customs and Border Protection or other government agencies.
2.Develop strong controls and systems support.Solid financial and accounting controls are necessary to ensure that all import and export transactions submitted to the government are accurate.Written procedure manuals are a must, and self audit reviews should be enacted on a regular basis.Maintaining proper documentation is highly important, as well as adhering to a document retention policy.Credible information systems are essential to ensure proper financial reconciliations and data management.
3.Ensure regulatory compliance.An effective CTCD understands the importance of complying with import and export regulations and government security programs.The management staff within the CTCD should be well versed on trade regulations as they affect their business.Keep yourself well educated on the dynamic area of government compliance and maintain an ongoing training and development program for company associates.Most importantly, develop and foster a comfortable relationship with an external legal counsel firm that specializes in international trade.
Developing a successful trade compliance area is not an insurmountable task, and it is highly important to a company engaging in international trade.Starting at the top to partner with the CEO is the first step to eliminating the “Status Quo Police.”
John Baldoni wrote on September 8 in The Conversation blog of the Harvard Business Review online that overconfidence or hubris can have a debilitating effect on a leader. I firmly agree with his assessment, but some may ponder a compelling side thought on this matter. “Is hubris or arrogance a trait that some leaders are predisposed to possess, or does this characteristic evolve from external factors?” However, in the end, whether or not the behavior is genetic or learned probably is less important than simply recognizing the symptoms and taking corrective action.
Admitting to one’s self that their confidence has become excessively inflated to an arrogant level can be ego bruising, which is all the more reason to observe Baldoni’s warning signs. Calling a “time out” on yourself to really assess how you are behaving can be a challenge, but the warning signs will clearly give you the proper signal. I agree with Baldoni’s recipe for taking corrective action, but I would propose three enhancements.
·Be aware of your competition. Ignoring your competition, whether you are selling a product or providing a service, will likely result in your demise. By grounding yourself and accepting that your competition can propel you to more smartly manage and lead your business, you will realistically approach your staff to guide and coach them to achieve their best. The proper level of confidence will naturally be fostered with this approach.
·Involve your subordinates in regular strategy sessions. An effective leader should not attempt to unilaterally establish a business direction without the involvement of his or her subordinates. One of the best means to avoid your own hubris is to solicit the business opinions of others. True, there may be times when the occasional confidential matter arises for which subordinate involvement would be inappropriate, but for the general strategic course of the business, subordinates should participate. Plan annual sessions where subordinates can provide their impressions and suggestions for activities that should be the business focus for the upcoming year. Six months afterwards, conduct a follow up session to assess the progress and make adjustments as necessary.
·Take a formal approach to a subordinate’s review of your performance. Baldoni suggests encouraging employee feedback of your performance as a boss or leader, but the process can be much more candid if held in a location other than your office. Allow the subordinate to review your performance while seated in their office or a neutral site, such as a conference room. Holding such a review in the bosses office can hinder an employee’s openness and may simply result in the reinforcement of your own negative behavior.
Certainly, as a leader, an effective level of confidence is necessary to inspire others and build the best teams. But be careful, and stay out of the “hubris zone.”
I came across an article in Bloomberg Businessweek written by Ken Butler, and here are my comments below. The reader can access the original article at:
When it comes to managing people, those in business seem to always be attracted to what I call the "Leadership Fountain of Youth." It comes packaged in a variety of ways, professional conferences, seminars, self-help books, and sometimes in a brief article that is succinct and to the point. Ken Butler has written such a brief article in the August 20, 2010 Bloomberg Businessweek, entitled "Success Is Simple. Do the Math." Sure, you can spend countless hours reading the self-help books and attending the costly seminars, but in four simple and impacting points, Ken Butler provides the secret to inspiring others to achieve their best.
I think in today's business world, leaders can fall prey to their own self interests and lose sight of how to propel their business forward. Ken Butler's four points are rooted in ensuring clear communication, properly articulating expectations, and demonstrating an ongoing level of genuine respect for each individual. Perhaps the biggest key here is his point regarding inspiration through recognition and listening to ideas and suggestions from others. I've worked in the corporate world for 30 years, and one of the hallmarks of my success has been my focus on personally acknowledging and greeting my teams daily. Making this a regular practice creates a deep feeling of business ownership by individuals because they know a superior cares about their contribution.
Ken Butler really has found the "Leadership Fountain of Youth." All you have to do now is take a drink.
