http://www.aldogrech.com
INVERSION is CxO Consulting's newsletter for Leaders, with most articles written by the founder Aldo Grech. The topics covered vary from Leadership to sales to life experiences and all arise from our core belief that success (whatever that means to you) is the result of us operating from our Essence, Purpose and Passion; not Ego!
Monday, February 17, 2014
Are you a Manager or a Leader?
http://www.aldogrech.com
Thursday, December 12, 2013
Who's Your Boss?
As a leader, this is a key question to keep in mind.
It is my observation and opinion over the many years that I led businesses, that there are 2 types of businesses, those that focus on the customer and those that focus on the shareholder. Now many will argue that these are not mutually exclusive, and maybe so. However. I believe that in most cases that I have observed, this is a valid statement.i believe that there is only one Organisation that is effective and meets the test of time and that is the Organisation that focuses on the customer. I also happen to believe that the Organisation that focuses primarily on its customer is better serving its shareholders.
The focus on shareholders is usually a short-term view of an Organisation. It is usually a 3 monthly cycle of achieving certain results. Where, if results are not met, the Organisation is severely punished. In order to meet these short term results, so called leaders resort to anything including getting rid of core staff (often not the ones that are obviously bringing the results, but are the hidden jewels, alas), selling core assets and diverting the Organisation away from its true vision, merely to keep investors happy. I use the word merely quite purposefully. As I believe the shareholders are best served if these decisions are not made, if they want long-term "success".
I am not saying that recalcitrant employees should not be addressed appropriately. However, getting rid of employees, merely for short-term results achievement, is tantamount to throwing away the baby with the bath water! This is a different issue and the subject of a separate article.
Shareholders are best served if the Organisation stays focused on its customers; it's vision, even as times get tough and as shareholders want blood. Of course, one needs to stay relevant and the business of a leader is in fact to continually measure the Organisational one page business plan against market ensuring its validity. However, once validated and/or trimmed, a true leader stays focused on the customer and not the short-term blood thirst of the shareholders. Shareholders operate out of fear and a true leader knows this, and is able to stay on course while managing shareholders expectations.
However, back to the original hypothesis. As a leader there is a key choice to make; the customer, or the shareholder. And this is not about politics and rhetoric. It is about conviction.
Practically, what does this mean?
The customer-centric leader understands that the Organisational best asset is the employee. They do everything to ensure that everybody is on board and on purpose. They ensure that training is provided for all to stay on purpose and eliminates those that refuse to adopt the vision and are not on purpose. These are not necessarily recalcitrant employees. However, sometimes, there are valid differences of opinion and there is no place for an employee with opposing views of objectives. This is like letting a cancer grow. An on-purpose Organisation is unstoppable, profitable and has longevity built-in; it can whitstand down-times and maximize profits in good times, better serving its loyal shareholders.
I would not call CEOs and Managers of shareholder-centric organizations leaders. They might be brilliant in delivering great short-term dividends. However, the organizations they build are not sustainable long-term, have tragic customer satisfaction levels and have limited longevity. They are the heroes of investors but create organizations with low morale high staff turn-over and as a result unsustainable. In the long-term, this is bad news for loyal investors and create cronic down-turns as they do almost anything (as shown in the GFC) to ensure short-term results. They might be Managers, CEOs, great analysers, politicians; often charismatic, but not Leaders.
Unfortunately, these individuals are the yardstick for our youth and this is a sad indictment for our civilization that has placed money as a god above all gods.
Obviously, investors are by nature transient and they pick and choose, dropping perceived hot potatoes for the new short term money making opportunity. This is sometimes good for the investors hip-pocket, but always bad for business.
Apple is a great example of my views. Its share-value has been savaged even as it enjoys, unparalleled customer satisfaction, unparalleled profits, unparalleled growth of liquid assets unparalleled equity for a company of its size and has effectively created 5 new global product categories; simply because it has not met shareholder expectations! Absurd...
As a Leader, it is your choice. Choose wisely as true deep-in-the-heart conviction, alignment and happiness is worth much more than the short-term financial reward. And be clear that choosing the customer over the shareholder is a sure guarantee of investor return, almost and oxymoron!
CxO has proven alternative methodologies to turn your Organisation into a sustainable, long term, great entity. http://www.CxOconsulting.com.au. Aldo Grech is the managing Partner and Leader of CxO.
Celebrate Mistakes
Leader definition according to Oxford Dictionary - the person who leads or commands a group, organization, or country; the person or team that is winning a sporting competition at a particular time; an organization or company that is the most advanced or successful in a particular area.
Today we redefine Leadership. Leadership is not exclusively related to the work environment. Leadership is about being in our element, operating from our essence. I have real life examples to make the point in a work environment that equally applies to all walks of life. The example is a real organisation in decline and in real trouble. In administration and having lost six hundred thousand dollars. I will later show you how Leadership utilising this new definition, has impacted this organisation.
We are all born natural leaders. But leadership is often educated out of us in our early days to conform to normality, through fear of mistakes.
We celebrate mistakes!
In this organisation the Staff to choose their CEO. I am that CEO. I, in turn nominated the customer as our CEO and delegated myself as his assistant. We instituted weekly meetings where the team was encouraged to bring their mistake to the table. If people did not, we assumed that they were not trying hard enough. Management is about control and as a result driven by fear of failure. Without risk, there is no growth and risk brings fear of mistakes. It is our responsibility as leaders to remove fear of mistakes as that's where the gold lies. Be-it at home or at the workplace, where there is fear of making mistakes, growth and creativity are greatly hampered. As a child, every fall was a step closer to our first step. The light bulb might never have been invented if it wasn't for thousands of mistakes.
"You mean I can do what I want, when I work for your company." Yes, this is your company. You turn-up when you want to and approach your role in the way that feels best for you. If the customer is satisfied, then so are we! "Really??? But when I expressed myself freely as a young child, I was told to grow-up and stop being silly!!!"
Such is the rigorous and pervasive normalisation training from our early days in in our culture generally, that fear, whilst undesirable, feels comfortable (the comfort of the known) where-as true freedom of expression is difficult and challenging. Happiness at home and at work relates more to the freedom of self-expression than it relates to how much we earn. Fear marginalises us. It makes us feel like frauds among peers. Operating from our essence, without fear of failure makes us Leaders. Leaders are creative and motivate others to operate from their core and their essence. They remove barriers of fear and shame. They motivate by respecting the individual for their individuality rather than rail-roading them into conformity of standards, hierarchy, roles and KPIs.
Mums can be Leaders. Artists can be leaders. Receptionists can be Leaders. Leaders are not hierarchically or financially motivated. Managers are! Yet, in my experience, the hardest thing is for people to trust that they are allowed to make mistakes and that they are allowed to "be themselves"! That's the real test. I was fortunate to work closely with Stan Shih (founder of Acer Computer). He believed that mistakes are the cost of education and losses applied to our training budget. Stan's company became the 3rd largest global PC manufacturer. When we set-out to be the best of who we are, doing what we believe not for financial or hierarchical advancement, as Steve Jobs showed, we end-up changing the world and receiving great financial reward.
So, operating from our Essence, is the best way to look after the board and the shareholders. We, met our customers and asked them many questions about us. We turned rhetoric and clichés into actions, marketed less, established customer-centric internal vision, eliminate non-profitable products, allowed the organisation to self realign behind the new vision, did not replace sales staff that left, removed the Sales Department, re-distributed the amount traditionally allocated to sales commissions into incentives for all. Most suppliers abandoned us. This had a significant impact on our Vision and had to choose a new, more profitable and sustainable direction. Gave 40% of company to staff and shared it equally between us.
We got the team to have more fun, flexible working hours, Foosball at office, Go carting & Karaoke nights, hours/days off without impacting leave entitlements, worked smarter not harder, Eliminate manual processes, open space environment and more. 14 staff spend less time at work, produced more than 29 did, revenues continued to slide! Profitability went up SIGNIFICANTLY, finishing 2011/12 with six hundred thousand dollar profit (a one point two million dollar turn-around) and on track to a record two point six million in 2012/13.
Thursday, March 11, 2010
To iPad or not to iPad
The following are my comments on an article recently published about the new Apple iPad.
I remember the die-hard apple lovers, knocking the PC decades ago (using similar arguments to the ones above) and we all know how things evolved from there.
Now the non-apple die-hards are at it and they are equally as out of touch. Your technology arguments might be correct. However, as Microsoft proved with it's PC OS and applications, Apple is showing that it learnt it's lesson and now engages the industry developers to produce apps that will make its hardware successful. Except that Apple has a new weapon in it's arsenal, great design.
iPad is a paradigm shifter that contemporaries are not able to comprehend and I am sure history will show that negative views are just "limited vision"!
Aldo Grech - CxO Consulting
Thursday, July 9, 2009
iPhone; today's PC?

- They made many people rich
- They created an industry around them (now known as resellers), many of which became wealthy fulfilling Microsoft's Client's needs; arguably sorting-out difficult to use software.
- Apple's Appstore is a new channel a virtual chain of resellers, adapted to today's delivery systems and customer needs.
- A great direct to customer channel of software sales; allowing developers to reap significant rewards.
- Are you ensuring that your products are being aired to iPhone customers?
- Are you ensuring that your employees and partners know that they stand to benefit significantly financially from their involvement with your organisation?
- Robert Murray, chief executive of mobile games development studio Firemint, says the iPhone and App Store also helped save the company after the downturn showed them their model wasn't working - http://www.smartcompany.com.au/leisure-and-gaming/20090703-firing-up-the-gaming-industry.html
- With more than 60 percent of Toyota Motor’s WAP traffic coming from the iPhone, the automaker decided to take a different approach to mobile with the promotion of the newest Prius car model - http://www.mobilemarketer.com/cms/news/database-crm/3636.html
- Rental resource provider Apartments.com has launched a new iPhone and iPod touch application to complement its online services and claim some territory in the coveted iPhone demographic - http://www.mobilemarketer.com/cms/news/search/3625.html
- Pernod Ricard’s Absolut Vodka is leveraging the mobile channel for branding, customer engagement, entertainment and affinity. The liquor giant has launched an iPhone application for meant to help it connect with legal-aged drinkers and provide relevant information to this audience - http://www.mobilemarketer.com/cms/news/advertising/3600.html
- Sam Plowman, head of online banking said: "It was very apparent to us that Apple had developed an interface that would bring forward the use of browser and internet apps on mobiles. We decided we had to be ready with app when the iPhone launched here.'' - http://www.smh.com.au/executive-style/gadgets/business-goes-for-iphone-apps-20090709-de79.html
Wednesday, July 8, 2009
Problems or Opportunities?

Sunday, July 5, 2009
Be Different or suffer Depression

Friday, May 29, 2009
Our Inevitable Doom

- take the right turn, yet again!
- listen to the voice within!
Thursday, May 28, 2009
The Tribal Organisation

So, did you ever consider that your organisation is already prepared for this world. And what if I was to suggest that the most cost-effective and fast method to unleash the power of your organisation is in fact to give power to these silos, bound by the same interest themes, simply by renaming Silos, Tribes. And I do not say this light-heartedly.
The themes of these tribes are for you to choose to build teams around. More likely than not, your organisation, independent of the many thousands of dollars of management consulting fees, still operate in Silos, except now they have gone underground protecting themselves from the wrath of management and management consultants, in an effort to protect productivity. And let me suggest that instead of, yet again disrupting natural organisational evolution, by spending management time rebuilding tribes, you reward Leaders within your organisation that identfy their silos/tribes; but there are a few rules.
Rules for effective tribes:
- Leaders of tribes are not necessarily Managers
- Tribe Leaders need to be protected from traditional managers
- Importantly, how are they creating and supporting the collective. Meaning how are they ensuring that they are a community of Tribes rather than Silos!
- Tribes could be cost centres as well as profit centres
- However, they need to clearly identify themselves as such
- Whether they are the former or latter, they need to clearly identify and articulate their purpose and how it delivers to the organisational vision
- Tribes that operate outside of the organisational vision are not to be repremanded
- Instead they should be asked to come-up with research to show validity for operating outside the vision (this could in fact be the Tribe that is creating your future).
- This divergent Tribe could be managed in a number of effective ways:
- integrated back into the Vision due to validity
- operate within an R&D environment if deemed opportunistic
- funded as a separate business
- sold-off as an idea (maybe to a keen venture-capitalist)
- Remember that they have had to first define their purpose and so have clear objectives
Aren't a group of small businesses merely Tribes with a different name. So shouldn't you be cultivating your Tribes and allowing them to be dynamic and responsive by loosening the schackles of hierarchy?
Another author that best describes the difference between Directive and Transformative organisations is Tom Voccola. Feel free to click here to download a free copy of his brilliant "The Accidental CEO" eBook (PDF).
Wednesday, May 20, 2009
Do not engage recruitment firms that drop their prices to get your work!

Thursday, May 7, 2009
Tasks are for computers!

We have created technology that takes-over menial tasks, speeds them up and adds levels of accuracy unheard-of until the advent of computers.
So why is it that we are still task-focused when it comes to our staff? Not that task definition and measurement is not important; it is critical. However, you employ human beings, not computers; human beings that are able (and to let you into a secret, are rearing to add their purpose and passion to the task at hand) to do those tasks and add so much value, if given latitude and when empowered.
How do you best leave your competition in the dust, when you are in the same industry, more-or-less offering the same products and services with a similar cost base? The no-brainer answer is by improving productivity.
Aldo Grech CxO Consulting
Sunday, May 3, 2009
Transparency = Improved Bottom Line

Where-as, the truth is that if your people are spending too much time on personal things like personal email and extensive coffee-breaks, then this tells us more about the organisation than about the people. And seeing we are at the helm of our organisation and Leading it, we need to take full responsibility.
Aldo Grech - CxO Consulting