A case study of a green-field startup with Swiss know-how implemented by a West-European expert team on Russian territory under Russian management

Russia is often described as “a combination of contradictions and a unity of opposites” (Hingley, 1981). Geographically spreading over two continents (Eastern Europe and northern Asia), 16 time zones and with a population of more than 143 million inhabitants, Russia has been for decades paddling between the East and the West, trying to find its way among communism and capitalism. Moreover, Russia is a multicultural country with more than 190 ethnic groups (Stratton, 2014).

Russian cultural and historical heritage have an influence on business life and management practice in Russia. It represents a very attractive market place and a great opportunity for many European companies. Despite of that, due to high corruption rate (World Bank Group, 2012) and inefficient legal system, not many European managers decide to make a step into the “unknown” and test their management skills in this ex SSSR country.

1. Introduction

At the beginning of 2013, one large Russian trading company finally decided – after years lingering just with the idea – to make a first, but a huge step into manufacturing. For the purpose of a vertical integration, the company acquired an old and bankrupt Russian company with its old & desolate facilities situated in a southern province with none or low skilled workers available in that particular industry (low wages territory). They renovated its building structures, hired a foreign start-up specialist to organize the Greenfield start-up and further create a high tech production environment using West-European technology and production under license. All that should be executed by more than a dozen of foreign specialists and state-of-the-art equipment worth many millions of EURO’s making up the most modern textile finishing plant in the world. All that sounded as a recipe for a guaranteed success of this project.

One and a half year after the hands-on initialization of the project – despite a 7-month delay – the final start-up was successful because the main technical parameters of production were met in due time. However – even as the start-up (not considering the time-delay) was successful it was obvious that this big factory was and has become a battle field between Russian management and the technical head of the project (start-up specialist) with his team of foreign engineers. The seven month time delay, a tumbling Ruble, as well as a highly inefficient administration, have put enormous weight on this heavy & complex investment and the entire organization. A western team, with decades of start-up experience was prone to execute a technically well- planned project & start-up schedule. However the goals and time-frames set by Russian leadership – almost (if not) a “mission impossible” – turned out to be an overkill for the Russian leadership and management and up to date still imposes by its consequences a steady threat of technical collapse. It is one thing to call something a successful start-up by meeting the technical parameters but another thing to consider this status-quo as self-sustaining or able to evolve to a higher level. The higher level would be the strategic goal of the Technical Leader to go beyond the manufacturing of the originally set quantity and quality i.e. start with own R&D and creating new products within the group and utilize the plants full capacity.

In the end, too many project components were completely altered in the believe that the West-European plans are not good enough, or an overkill, or too complicated or even “luxury” and won’t be “necessary” in the sense that things can be done in a more simple and more economical way.

This case study will provide not only a description of a clash of cultures that the expats faced but also a subjective opinion how a cultural insensibility in combination with a manufacturing inexperienced top-management team led to a failure of the project in regard to the achievements of its original time-frame & goals. The plant will still deliver the products it is supposed to produce, but in a non-competitive manner for some months or even years to come. Moreover, the potential for qualitative growth has been reduced by more than half. It will take the investors a good breath to neutralize the negative effects of the before mentioned factors, the non-compliance with the original plans of the foreign specialists team which only was assigned with the goal to start-up the high-tech operation and breed a Russian workforce and technical management over the next 2 – 4 years to come.

In the 2nd year of the project finally the consequences of the alterations and “knowing it better culture” have become evident at every corner and stage of the project. The 7 – month delay of start-up, start-up problems and low quality plant infrastructure have seriously endangered a multi-million investment and its competitiveness (none to poor working ducts and piping, instable utility supply e.g. steam, poor or no air exchange and air-conditioning system leading to very labor disturbing conditions such as working temperatures far beyond 30° C and poor air-quality due to insufficient suction of chemical exhaust gases and air-exchange in general). In the first months of start-up all foreign specialists have the fear that all can still fail at any time i.e. a technical collapse might occur as no spare-parts for the expensive equipment was bought to ensure a continuous operation. In the end, almost any savings-strategy applied in 2014 turned out to losses for the investor.

After this rather pragmatic and partly subjective way of looking at things, the authors try to find a deeper underlying nature of why something like this happens and might happen in other projects in the Russian Federation but also other parts of the world. In the end the authors feel that not all is culture related but somehow culture may magnify managerial errors and lead to even bigger consequences.

Read the complete Success Story here

That is the question facing the visitor in India. At the airport, he gets into a taxi and and soon, the cabby starts asking questions. “Where are you from? Is this your first time in India? Which hotel should I take you to?” And later in this inescapable conversation, which is actually more of an interview, he wants to know: “How many children do you have?” The Indian cabby assembles a profile of the foreigner and uses the gained knowledge to determine the answer to his true question: Is the visitor leading the cabby or is the cabby leading the visitor?

Does this foreign guest come from a well-known, affluent western country? Is this his first time in India? Does he have a reservation in a five-star hotel? Also, is he unmarried and does not have children? If that is the case, he is a customer with a potentially high sales volume. Because in India, a country that is just now carefully starting to adjust to stipulated pricing, this enterprising Indian citizen will adjust his pricing according to the spending and negotiating power of his customer. The foreign, undiscerning passenger can’t determine the most direct way to the hotel. He has enough money and, since he is not married and has no children, is therefore inexperienced in life. For better or worse, he will be lead by this taxi driver, who is familiar with the local surroundings and has experience with leadership and life.

Now, if this passenger is the kind who has been to India several times, his family awaiting his return at home, the taxi driver knows what to do. He understands that he is dealing with a guest who cannot be lead. He turns on his meter and drives the most direct way towards the hotel.

It is not surprising, that leading celebrities belong to the inventory of a country, which determines hierarchy without dread or shame. People, who over the course of time have rendered their services with heroism and leadership, are now honored as shining role models. Based on the occasion and purpose of the event, they are being quoted and serenaded. Their statues can be found in many streets and locations in Indian cities and towns. Their pictures are hung right next to the displays of Hindu gods and many hospitals, schools and airports are named after them.

India has indeed produced many leaders who are still being admired today. One of those, for example, is Chandragupta Maurya (died around 297 BC). He was the ruler of almost the entire Indian subcontinent. He combined many small and large kingdoms and principalities into one large one. His closest advisor was Kautilya, who created the famous work Arthashastra. This lecture book describes and justifies the meaning of power and affluence. Indian men and women are proud of the nation’s unity and feel inherited by Maurya.

Ashoka (304-232 BC), Mauryas grandson, brutally and indiscriminately enlarged the kingdom through his further conquests. This generated a lot of suffering and misery in the country and catapulted Ashoka into an ethical crisis. He converted to Buddhism and relinquished all future conquests. Instead, emperor Ashoka dedicated his time to peacekeeping and welfare issues. He prohibited war and demanded that all his people become vegetarians. Many Indians see an example in Ashoka. Practicing a non-violent life does, by no means represent resignation or failure, but helps people to achieve fame and respect.

Another admired ruler was the mogul emperor Akbar the Great (1555-1606). He realized that India could only be ruled successfully if the diversity and complexity of all inhabitants was being respected. He abolished political and economical privileges that were solely based on religious denominations and he encouraged his people to strive for a marriage outside of the communal borders. He himself proceeded to do so by marrying a Hindu wife. Akbar is seen as a pragmatical ruler.

Another example is Mohandas Karamchand Gandhi (1869-1948). Not only was he India’s leader for political independence but also for the mental liberation of mankind. To achieve freedom and independence, Gandhi advocated for a deep spiritual awareness and that mankind must convert their material weaknesses into spiritual mental strength. He devised Gandhi Satyagraha, a strategy of nonviolence.

To turn the enemy into an ally, mankind needed to learn to accept their pain and suffering. Gandhi was confident that violence only leads to more violence.

Therefore he advised to always appeal to the opponent’s feelings and conscience instead of threatening him. Up until today, Gandhi is regarded as the country’s saint. Together with other personalities, he led India from the European colonial powers into freedom. His birthday is celebrated as a national holiday.

These four exemplary Indians are inter-connected by the unity in the core elements of a believe system. The Indian population does not see their actions as heroic acts, but rather the personification of spiritual values. Maurya created unity and harmony, which Indian philosophy regards as the highest virtue. Ashoka stands for the path of nonviolence. By overcoming the communal borders, Akbar created harmony as well. Gandhi represents the core values for truth, nonviolence, enlightenment and liberation.

Even in modern days, these and similar philosophical and spiritual teachings can be found. They are part of India’s contemporary culture. A culture lived by more than one billion people, looking back to a history of five thousand years forming culture and mindset.

Their spiritual legacy did not see any dramatical changes throughout historical upheavals and no revolution ever took place. Europe, on the other hand, has collective memories of the achievement of reformation, the age of enlightenment and the French Revolution. Even though both world wars threatened the European people to fall back to barbaric times, they learned a lesson as well. Since those times, the German term for leadership – Führung – has been lined with suspicion; especially in the German language. Luckily it is common to borrow words from the English language!

The cultivation of civic rights, which was strengthened in Switzerland through direct democracy, changed the European man into a quiet leader: inconspicuous and discreet. He does not force his will or opinions upon others. He skillfully tries to convince and to motivate. Whenever he finds someone leading offensively, he dismisses this as an improper way of striving for power and will, if necessary, criticize. If God is mentioned as well, he will react suspiciously, even angrily. He is too disappointed in with the religious institutions.

Everyday life in India is populated with holy cows, mendicant friars, temples, mosques and churches. All standing side by side with shopping centers, modern airports, sleek office buildings and sterile looking microchip factories. India manages to effortlessly combine a world of gods and goddesses, money and luxury and poverty and affluence. The Indian people maintain a direct link to their favorite deity to seek comfort, refuge and guidance.

The same manner, in which a boss and a co-worker cooperate and communicate, is directly derived from the spiritual core elements of the Indian culture. The ancient Indian tradition presents the earthly life in four phases, each with their own goals and tasks. Based on an average age limit of 84, each life phase lasts around 21 years. With this kind of calculation, man tries to develop oneself, based on his age and life experience.

The self exists in one’s mind, one’s soul. The body only serves the mind to develop itself until it is enlightened. For the Indian person, individual fulfillment can be achieved through the means of yoga, meditation and living one’s life on the right track. Only then can the soul be freed from the circle of reincarnation and can pass into Nirvana.

During the first life phase, called the ‘student’s awareness’, one is seen as a learning person. This person is mentally and physically emotional, naïve and inexperienced. Parents, grandparents, friends of the family, teachers and priests teach this young person about practice and discipline. They show him the interaction of the spiritual, social and family life and how they work together in harmony. This young person learns from his tutors that he does not yet hold the right knowledge and experience to make independent decisions. He learns through this, that authority needs to be sought from people who are no longer present on the scholar’s awareness level but have advanced. He tries to be guided by them, listens to them and is being lead by them. These leaders will guide the student onto the right path to self-fulfillment.

India does not differentiate itself from the rest of the world by making this young person aware of the importance of learning, to practice and to gain knowledge. The only difference is the social contract: “You are still a student. If you patiently, humbly and submissively accept the fact that there will always be someone to tell you what and how you have to live your life, only then will you be successfully merged into your next consciousness.”

The second phase of life revolves about being married. One is occupied with worldly and material things; to make and bear children, feed them, raise them and support them to stand on their own feet. The consciousness of the married person is to take up responsibility and to guide young people onto the right path of life and to share one’s knowledge, well-being and prosperity. This is the time to acquire leadership experience. This comes with a contract as well: “Now you have knowledge and have things to say. Your soul and body are no longer chaste. You have experienced the creation of life. Show the young, unmarried and inexperienced people around you that their waiting will be rewarded. But be aware that you have to be ready to accept your new duties. Look at your parents’ generation. Look, how content they are with themselves. They once were young, unmarried and inexperienced students, too. Then they changed the way you did and awoke to a new level of consciousness. Your leaders are expecting you.”

There is no gap between the worldly aptitudes and the duties that are implemented in the consciousness of the married person. For example: On one side, one will act out their sexuality to promote a healthy and harmonic balance of body and soul. On the other hand, one will serve their partner during their mutual love life, to support their well-being. The Kamasutra serves, amongst other things, for a sensual combination of necessity and labor of love.

The third phase of life is the part, when man has fulfilled all of his material obligations and attends to the spiritual aspects of one’s existence. He enters into the level of consciousness and withdraws from material assets. The children have long left their nest at home. During this time, one will meditate and pray more often to note how his inner life is changing. He consciously connects with his soul. He does not disconnect from material things during this period, rather enjoys fewer things with much more appreciation. This is the time when he reviews if his feelings, thoughts and actions are in harmony with the deities. This is when the two former social contracts are exchanged with a new one: “ You have achieved a lot. You have handed on life; you have used every available material possibility to differentiate between the essential and inessential. Now attend to the young ones, so that they too can achieve their material self without haste. But don’t forget to look ahead. Look at the ones, who are aging and are becoming wiser. Be aware that they are relishing the prestige and respect that is given to them! You will be like them some day. For now, be humble and generous.”

During the transition to the fourth phase of life, man becomes aware that the body’s earthly existence is finite. Maybe he will become sick and frail or plainly lack energy in old age. He lives in a stage where he will withdraw from the earthly life. He withdraws himself from others; he becomes slower and quieter and increasingly practices his spiritual exercises. In the company of younger people, his appearance is that of an experienced, wise man. Anyone living in the preceding phases holds him in high regards.

The fourth phase of life requires another contract: “Serve as a leading example to all younger people and show them how to succeed in the earthly life. Offer your guidance but don’t be obtrusive. Use this opportunity to come to terms with yourself, your mission and your diminutive size in this universe. Once your body dies and God is pleased, your spirit will be enlightened and won’t have to be reincarnated. It will transition to Nirvana. But if you missed or skipped important lessons during your early years, your soul will return and will have to cycle through the four phases of life once again.”

It is this kind of a traditional idea of man that is present nowadays. It is especially apparent during cooperation of Indians and Western Europeans: the Western European project manager asks his team member: “Could you please finish this project by Tuesday evening?” The Indian colleague, a young and smart engineer with an outstanding education, answers: “No problem.” The project manager is satisfied with this. His Western European ears hear this answer literally and he just assumes that the Indian colleague said “yes”. But by Thursday, two days after the agreed upon deadline, the project leader is surprised that not only the job has not been finished but that he was not given a note about the delay. He approaches his colleague and inquires about it. Again, he receives the same answer, although the intonation of the sentence leads to: “No, there is no problem…”. “But?”, asks the project manager. “Well, it’s just that my boss is on a business trip…”, answers the Indian colleague. The project manager is dumbfounded and angry, but he refrains from scolding. Before hanging up, he replies with: “Ok, no problem.”

Needless to say, the western European project leader is frustrated. He has learned how to lead team members so they would not need to rely on him, except for unpleasant decision-making and to shield the team from management. Every team member is his own leader, is responsible for his or her own actions and brings the right knowledge to the table. The project manager is only just another team member if they don’t meet for a project meeting every ten days. That is why the project manager had to assume that his Indian team member would immediately inquire and notify about any arising problems.

But this young, unmarried Indian colleague, who is living on the student’s awareness level, sees this participatory type of behavior as a lack of leadership. A boss, who always shows his anger or his utmost determination with a friendly face, can be nothing else but a team member: young, inexperienced and without any authority. That is why this Indian team member is waiting for his stricter but well-meaning boss. He’s waiting for this married person, a father or mother of two children, to return from their business trip and to guide him through his life, work and career. Someone who would just simply say: “You can handle this job. Just ask your project leader in Switzerland what he expects of you and make sure to meet the deadline!”

The student, the married person, the withdrawal from material things and the renunciation of all worldly matter: With the Indian belief system, man receives the learning tasks, experience and the knowledge that will serve him for the maturation of his or her current life. Not only does it seem unnecessary but unproductive as well, to confront a person with issues, which do not have to be dealt with yet. This might hinder the freedom of an individual to work and live independently, but it will relieve him of the pressure to be responsible for topics and tasks, that he is not yet familiar with. The traditional Indian manner of leading coworkers is often aimed at passing down the tasks. This kind of delegation and the demand of responsibility and accountability are surely tasks that are taken much more slowly than in Western Europe.

India seems to have a nearly inexhaustible amount of time. The Indian person learns from a young age on, that the ultimate goal is to achieve that same level of awareness as Brahman did. In the Hindu philosophy, Brahman is considered to be the highest concept of God. He is the cosmic spirit of the world, shapeless and timeless, without beginning or an end, the origin of all being and the absolute harmony. For the path of life, the Indian child is taught to strive for harmony with everything it feels, thinks and acts upon. On a spiritual level, its soul is partially identical with the one of Brahman, but has to live through numerous worldly lives first. Theoretically, 311 trillion years are at its disposal. This kind of time budget could be a true challenge for multi-cultural project management ventures! Some projects will just have to be divided into smaller jobs with much shorter time limits to reduce the appearance of unachievable goals.

Additionally, every Indian child learns that every one of his or her feelings, thoughts and actions will have an effect in the present or future life. For example: A persons’ negative thoughts will affect that person negatively. The same applies to the thoughts and actions, whereas the feelings have the most powerful effect, thoughts the second most powerful and actions the least powerful effect. This means, that the Indian person always tries to create the most positive energy and tries to develop positive meetings and relationships. He always strives for a harmonic present, as to achieve a kind of harmony with his soul for upcoming reincarnations.

The art of leading Indian co-workers is, to use suggestions that can be answered with a “yes”, instead of asking: “Where’s the problem?” That will only point out the in harmonic state. To find a loophole, he would try to distract from the problem, by saying: “No problem”. Instead, a sentence as: “We have discovered a problem that we should solve together”, will encourage this young, unmarried Indian coworker to answer with a: “Yes, you are correct!”. By pointing out this shared connection, it will establish the harmony between him and his superior.

The theoretical and theological importance of social and spiritual harmony is just as evident in the caste system. It is, without a doubt, one of the most discussed topics in the Indian community and culture. Although the four main castes (Brahmans, Kshatriyas, Vaishyas and Shudras) originally described the maturing process of the soul, man has turned their teachings into an instrument. With this he can dominate those who are in a lower caste, by granting power and authority to a self-appointed elite. During those four phases of life, this applies as well: every segment has it’s own duties, roles and obligations; all in due time; do not rush, do not challenge the universal destiny and do not make any changes to the social order because one’s luck might be refused.

The caste system is generally associated with the Hindu belief system. Yet it is much bigger. It is a part of the culture that embraces all religious denominations. This makes it possible for even Indian Muslims and Christians to be convinced that some categories of people belong into a higher caste and some into a lower one.

The perception of the four phases of life and the four castes emphasizes the hierarchical type of leadership, which still can be found at most Indian companies. A company that organizes itself hierarchically and follows those structures, will find that superiors and subordinate workers will follow the same principles. To lead and to follow, to superordinate or to subordinate is normal, necessary and appropriate. The co-worker avoids contradiction towards his superior, as so for to not lose face. This would only cause the loss of goodwill from his superior, who is supposed to be his most important leadership figure.

In this hierarchical system, Indian co-workers often tend to not only conform, but to go one step beyond. The Western European business describes this as the “Yes Culture”. Even though everything is agreed with a ‘yes’, the actions do not comply with the words.

If an instruction or possibly an order from the top is met with a compliant “yes” from the lower levels, a mutual dependence might be formed. The co-worker’s chance of advancement, his reputation and his self-worth become dependent from his superior’s good will. The superior, on the other side, makes his status, authority and his power of cooperation dependent.

It is apparent that job opportunities in the knowledge-based businesses are changing the Indian management style. Allegedly, India does not lead with such a hierarchy as it did just a few years ago but is on it’s way to adjust more and more to the western style of leadership. But the government of India’s official counts show that only 5% or 23.5 million of the country’s total work force of 470 million are employed in knowledge-based businesses. It seems impossible to observe any fundamental changes.

Nevertheless, India’s’ self-proclaimed goal is to become one of the leading nations of the world. Just like the spiritual core elements, this identical type of goal is anchored in the Vedic scriptures, the base of the Indian philosophy and belief system. Will India try to get into the lead externally, while changing its principles internally? Does the future hold a less hierarchical system of leading and following? All of these questions are speculative. But the essential question remains the same: Who is leading whom?

First published in its original German version in “Interkulturell führen – Diversity 2.0 als Wettbewerbsvorteil” at Neue Zürcher Zeitung

About the author: Waseem Hussain is the Founder & CEO of a services company with a specialization on business with India. Before, he was the business manager of a globally operating outsourcing company, after heading a joint venture between a Swiss and an Indian software development company. His key strengths are quickly grasping the clients’ situation, crafting executable strategies and implementing steps towards success. Click to view Waseem’s short bio

Written by Mike Hoff

As a young leader, when I first heard the phrase “Leadership Courage”, it left me feeling a little scared as to what I would have to do to live up to or even begin to possess such a thing. Today I wonder how I would manage without it and enjoy helping the new generation of leaders to develop their own brand of it.

It’s helpful to define Leadership as “any attempt to influence” and Courage as  “the ability and willingness to confront fear, pain, danger or uncertainty”

So together Leadership Courage can be described as any attempt to influence a person or situation in the face of controversy where there is an easier option available. Quite often this alternative is a simple “Yes, I agree” rather than put your voice into the ring.

It is this strength of conviction and verbalising those thoughts that are running around in a Courageous Leaders head that differentiates them from the yes people.

During some of our assignments, I have seen amazing examples of Leadership Courage where team members will openly challenge the status quo and debate their corner either for the good of the team they lead, the company or the team they are part of.

The latter team is the most important one they serve. Also, this is where the courage to speak up is the toughest as there is no position power in a room of peers therefore the ability to influence relies heavily on personal power and the courage to be able to overcome any fear to speak out.

The great news is that once you develop the ability to demonstrate Leadership Courage you will positively infect those around you and start an epidemic, it is truly contagious and the results that can be achieved will be way beyond your expectations.

So what are some of the traits of a courageous leader?

• The ability to face adverse conditions head on is a key trait and allows the leader to see the real and lead the team to a better place
• Holding everyone to the same high standards is sometimes a challenge for the non-courageous leader. Courageous leaders don’t wait too long before removing poor performers. Those not acting in this way tend to hear cries of “what took you so long to deal with that issue!” when they eventually get round to dealing with performance issues.
• A courageous leader also gives and receives honest feedback. The leader has the ability to say what has to be said to an individual by focusing on the behaviour that needs to be corrected. In the same way, the leader actively seeks feedback from all around them and acts upon it.
• A courageous leader consults before making important decisions and leads others in moving towards the resulting actions required. This helps in making an informed decision while encouraging others to move forward regardless of the challenges to be faced.
• The ability to change is a pre-requisite for delivering a courageous stance on your leadership, be bold and recognise the only constant is change.

What is the positive impact of leadership courage in an organization or a team?

Provides security to the team

Leadership courage promotes a sense of security to the team in the organization. When the leader faces the hard reality, he/she then leads the team members by showing the right way. It therefore makes the team members feel secure to take the risk and work towards higher goals.

Builds more courageous leaders

The leader builds confidence in the team around them by showing how small reversible experiments (risks!) can really be game changers, demonstrating that failure is actually encouraged and how speaking up with conviction can have a 10x positive effect on a difficult situation. This is a skill that can be learnt and one that we have had many a success with installing into executive teams.

The difficult conversations are aired and resolved

I have sat in a lot of board meetings with our clients biting my tongue as the tricky subjects are danced around, very effectively in many cases! A common reason for this I have found is the lack of accountability in the room, therefore no one can by definition be held to account for an issue so it is swept deftly away under the boardroom carpet. The great CXO teams ensure that they leave the room aligned and all the debate has taken place. This takes time to establish but is well worth those sharp intakes of breath you take before you speak up!

Drives the organization to the next level

A courageous leader drives the organization to the next level through bold decision making, problem solving and risk taking. This is often when the CEOs we work with are ready to step up themselves and become more strategic in their thinking and take bold steps to change the way things are done around the organisation, this takes courage and determination.

A few tips to try out!

Becoming the courageous leader that you aspire to does not happen overnight but with the willingness to try some new things out your confidence will grow fairly rapidly. The following tips have served me well, some were passed down to me from key mentors in my career and some were trial and error on my part. Be bold and try a few out!

• Trust your gut instincts, your intuition. If something feels or looks wrong to you, it probably is worth challenging the status quo.
• Ask yourself: “What’s the worst that could happen?” before you raise a subject or issue you can sense is not quite right or has not been debated fully
• “Grasp the nettle” was a term my leadership mentor encouraged me to do from an early age. This drove me not to dance around issues but to get to the root cause efficiently, however difficult or unpleasant.

(Side note: Aaron Hill’s Works, circa 1750, contains the first example that I can find that advises that a nettle be grasped: “Tender-handed stroke a nettle, And it stings you, for your pains: Grasp it like a man of mettle, And it soft as silk remains.”)

• Be receptive to tough feedback. Easier said than done depending on your behavioural profile!
• Gain self insight into your talents, your drivers and behaviours to ensure that all of your strengths are being deployed to the good of yourself and others. Holding them back or working in an environment that does not allow them to be deployed is unfair on yourself, others and the company. Develop the courage to use them… a lot!
• Surround yourself with people who are better than you. This was a lesson I learned during my time with Starbucks from the founder Howard Shultz. Courageous leaders are ok with not being great at everything.
• Communicate openly. Do this a lot and very often. Don’t hide behind the office door in fear of being transparent with your team. This not only builds your own confidence but enhances the trust given to you by others.
• Set stretch goals and delegate well. Ensure accountabilities are clear and everyone knows those key indicators that show they are on the right track and correct when they are not.

In summary

Nurturing Courage amongst your leadership team should be top of your agenda when looking for ways to make your team more effective. It takes you to demonstrate courage daily if you are to be the one who helps change your team, company or the world!

For more information on how to take stock of where you and your team are in relation to Courageous Leadership, drop an email to Mike@mikehoffconsulting.com

A great leader’s courage to fulfill his vision comes from passion, not position.

– John Maxwell

About the author: Mike Hoff has more than 30 years of senior leadership experience across a wide spectrum of trades and professions. Along with an in-depth understanding of business processes at both strategic and operational levels, Mike’s energetic style and passion creates a unique blend, offering companies all-round bespoke development solutions.

View Mike’s iCEO profile

Energy is by definition an exciting thing. We use that word not only to describe the motor of our everyday life, the very essence of how our world works, but also to define spirit, character, even a conversation. It’s too bad if we happen to fail in comprehending the latter (that’s life), but if we also fail to understand energy as the primary and complex matter and industry that it is, then we are bound for catastrophe. As simple as it may sound, this is what has been happening in the past 10 years in the energy industry worldwide: the idea that business can apply to energy like any other, that its experts are such even if by unverified proclamation and that if we end up paying a lot for renewables it is because it’s just an unprofitable idea, at least for now.

As an executive with thirty years of managerial experience in multinational companies, working in the energy field for the last ten of my career has been a welcomed challenge. I believe in progress, in sustainable and profitable solutions, in the future. But as energy business scandals unfold in the news in these last days, I am prone to bitterness to say the least – it seems as if though we had the solutions ready, but we kept ignoring the problems. And now all hell is breaking loose.

Even if we are currently stuck in the recurring paradigm for which progress and innovation take a social and economic toll that hopefully will pass once we are forced with no other possible choice, anyone who works in the energy business knows (at least deep down) that it’s not the industry that is at risk, but rather the mindset that is behind it. Oil keeps reigning but it won’t forever. The sun and its daily irradiation of 12.000 times the energy needed by the whole planet are bound to be more reliable, for example. If we haven’t yet found a way to exploit that, we will.

But only if we adopt a renewable business mindset as well. Historic energy companies are falling in front of our eyes – such as self-styled world leader solar plants developers, gas producers, coal miners and so on, that until “yesterday” were considered as milestones of our society, compasses for anyone, from institutional investors to common savers, willing to navigate the meanders of technology and investments. And so we are bewildered. We read of financial analyses, interviews, briefs. But it appears that no one is actually describing the simple truth: companies are made of people, and if people don’t understand the game they’re playing, they will lose. You can’t fit a square through a circle hole, despite all the money you may have or be willing to lose in trying.

Speaking of money, the knowledge you may have of it will do you nothing in the renewable energies market if you don’t have a deep awareness of how it works. The risk of turning it into an economic bubble was obvious early on, but it was deemed a problem of tomorrow. Incentives in many countries paved the way for billions in investments, until national agencies closed the faucets and wished investors a good (sunny) day. In Italy for example, solar energy accounts for 18 GW of installed power, covering some 7% of the Italian energy need. It’s a lot less than what we could do, but nonetheless people have stopped to take interest or have even started to complain heavily of prices.

I doubt most of my Italian fellow citizens know that their energy bill might have hidden costs that account to approx. 0.40€ per quarter for them, but may mean a total of much over 8M€ for that utility in the business. They are barking at the wrong tree.

But not all are blind. Germany has done an amazing job in simply looking at the big picture, the long run. In sustaining the energy growth at all levels, from residential to industrial, it is perfectly in line with its intent to get rid of nuclear power within the next 30 years. On the other side of the revolution we have Italy for example, a champion of bureaucracy that has attracted developers and investors from all over the world thanks to the quality of its sun and the abundance of its incentives (included some of those ‘stars’ recalled above, who set up in North-East Italy one of the largest solar plants in the world with a power of 70 MW), and managed to fail them all.

I understand that being that thing that runs through copper cables (electric energy), or that hot fluid that flows through pipes (thermic energy) to name a few, it is hard to grasp. An oil barrel is much more reliable for our brains, you can touch it, and you can sell it by the gallon, which is still a much easier measure than a kilo-watt-hour. But that is no excuse for linking the price plunge of oil to the insecurity of a renewable future. The recipe for success here is to account for all aspects of the energy industry, not just one (money). Investment, ROI, environment, development, growth, wealth, economic stability and most of all – a long term mindset, able to adapt and see beyond the easy money of an easy investment. There is no room for neither anymore.

I had proof of all this when I was called for a consultancy about an international major project concerning a solar plant that had three different countries involved as parties, and that wasn’t performing as planned making banks and investors extremely anxious (not to say raging). I was expected to spend at least two days examining the plant and the business behind it, which instead I managed to do in no more than half an hour. There wasn’t any dark secret to be unveiled, no inexplicable economic loop that it had fallen in, no conjecture of lack of sun and poor panel quality. The simple truth was that there had been made simple mistakes. People who knew and understood almost nothing about energy decided to become energy makers. And that is why we are now left with “the result of cheap money and excessive financialization of the economy”, as Bezek said recently in one of his articles. I was never called by those investors again, for them what I stated was just too simple and too easy to be true!

My hope is that we will stop thinking just until the next bubble, the next scandal, the next problem. Great things are happening right now with renewables, like the startup Watly who doesn’t build panels or solar plants, but cleans water with the energy of solar panels, just to name one. The technology is ever-growing, and nevertheless amazing as the first day we realized we could harvest the power of the sun. I urge any and all managers that do not ‘understand’ energy and are after the great money and great career to stay away from the energy industry.

Not because it wouldn’t do it for them, but because they wouldn’t do it for her.

About the author: Dr. Liborio F. Nanni

An accomplished, multi-lingual and growth focused Senior Executive with a proven track record of international large-scale ($300M+ USD) contract successes leading General Management, Change Management, Business Development, Sales, and Operations Teams within various sectors of industry such as high-tech field with late focus on the Power and Energy, Renewable Energy, and Utilities sectors with significant exposure to the operating environments of US multinational corporations and the effective management of dispersed multicultural and multifunctional teams within multi-country environments.

A mature and credible leader with long P&L management experience, strong negotiations and market penetration skills, and highly developed customer facing skills across the entire value chain: from OEMs to key ends users, from distributors to EPC including responsibility for multi-million euro budgets. Equipped with a hands-on mind-set and a Group mind-set; employs excellent presentation, demonstrated ability to communicate and C-Level stakeholder management skills, together with whilst developing teams and individuals using a mentoring philosophy to exceed the business objectives. View Dr. Liborio F. Nanni’s short bio

Some of the most powerful people of today’s world are women. They are leading nations and fortune 500 companies and are holding up extremely well in a male dominated world, bringing change and new perspectives to the established ways of doing politics or business and setting new standards. There are numerous examples where women did prove their business acumen and ability to tackle the odds of a global business world – on many occasions, with considerable more sensitivity and foresight as their male counterparts – and with better results, as noted by a study (Catalyst, 2007, Grant Thornton) : In his study, companies with a higher proportion of women on their board had significant higher returns on invested capital, returns on equity, and sales.

Underrepresentation of women in business

And yet – the representation of women in CEO positions in Fortune 500 companies lies still below 5%.

Why – in a modern, allegedly equal and liberal society – is it so hard for women to access these top jobs?

The stereotype answer to this question lies on hand: because they chose the family way over their career. True for some, but looking at the whole picture, one will find, even with the same education and willingness to succeed, most women stay miles behind their male colleagues.

Same work, same pay?

Starting with the salary: women are paid on average 25% less than their male counterparts – and this is not just due to the generously quoted fact that women often work in lesser paid industries, such as education, healthcare etc., as this only equates for a portion of the gap. Looking closer, the pay gap stays true when comparing functions within one industry: same work, same position, less salary.

As a matter of fact, the pay gap winds its way through all levels and sectors, and gets worse the higher a woman climbs in the hierarchy of a company. It is also true for the film and art industry.

A sad state of the affair, considering that its more than half a century ago, when the first women went on strike to fight for equal pay.

A recent study in Germany revealed that although over 80% of the jobs in the book industry are occupied by women, only 4% hold well paid executive positions. This inequality continues with the novelists itself. Although women novelists are clearly ahead of their male colleagues, when it comes to their representation on the top places of bestselling lists (paperback), they are rigorously underrepresented in the classy hardcover section and prestigious literature reviews. Looking at awards, it seems that the best entry ticket to win a book prize is a male name.

Lack of recognition

Which brings us to the next point of the dilemma: Recognition.

Parallel to the lack of recognition in the world of literature, women struggle hard to get the same recognition and respect for their (same) contribution to the success of a company as their male colleagues. This boils mainly down to biases towards women, both conscious and unconscious, equally from men and women.

The number of prejudices against women (and men) in our societies is huge and although many of them would not hold up against reality anymore, the people hold on to them, due to their socialisation.

I am not just talking about blunt prejudices such as: “women are no good at math, cannot take strategic decisions and are unable to park a car without denting it”. I am talking about the small underlying biases that tend to keep women in their place as perceived rightful by society.

The old mind-set

To give an example: a friend of mine, a very successful mother of three and top executive has to go on business trips on a regular basis. While her husband has no problem taking over the children and household when she is away, her mother keeps reminding her, that she ought to be careful with all those business trips, as one day, her husband might be gone. A worry her mother never aired at times when her husband joined the frequent flyer ranks. You might argue, that her mother belongs to a generation, where gender equality was still in its baby shoes, but what about her 10 years younger neighbour, who instantly offers to cook for her poor abandoned family as soon as my friend steps out of the house carrying a suitcase. A very kind, but nevertheless annoying offer, as it promotes inadvertedly the silent understanding, that a fulltime working woman needs no support caring for a family next to her job, while the same task is unacceptable for a man. This perception does not stop at her mother and neighbour, it follows her in form of the frequently asked question: “Oh, you got kids? Who is looking after them, while you are away?”

A question by the way, her male colleagues never will hear.

A question that nurtures her bad conscience towards her family, although her husband is perfectly fine looking after her children.

A question, that clearly indicates her perceived role in society and shuts her in the drawer “mother, not fully dedicated to business, not reliable”.

It’s a mind-set, so tightly woven in our perspectives that we can rarely free ourselves from the consequences: clear, linear career path for men, disrupted, then stagnant career for women. Worsened by the lack of sponsoring endured by women, though undeniably inevitable to progress to the very top. Furthermore, whereas men sponsoring men is regarded as normal, when a woman benefits from the same type of sponsorship it is often linked to a romantic interest beside the business matter.

Old fashioned? Sadly not. It’s still a typical reaction to female sponsorship, coming from both, men and women.

Assertiveness and vision versus adaptability and sustainability

Women tend to be more willing to take a step back if ought to be needed, to adapt to a changing situation and to put the interest of a community ahead of their own. Thinking in sustainability terms, these attributes should be highly sought after to lead the changing global business world into a sustainable and liveable future. Yet, it’s the lack of assertiveness and pushiness that holds them back in second and third row, while men step to the top, elbows out, a visionary goal in mind and focus rather on their own achievement than the greater worth for the company, humanity or environment. Strangely, a man displaying assertiveness is regarded as a being strong; a woman displaying the same assertive attitude is easily cast as being difficult.

But – while assertiveness can be learned, to become visionary is hard to train.
Without visionary pioneers though, the world would be at a standstill. But visionary business tycoons, who set short-term goals above long-term liveability and sustainability, act irresponsible to present and future societies. As we see well at the current state of our environment.

Out of the trap

There is one important question to ask: how can women (and men) get out of this trap?
There are many aspects to consider, many keys to turn. To begin with: changing the mind-set, where women are less able, less worthy, less important and solely responsible for childcare.
Children are the fuel oft the world, they are the future of any society; they are the most important people in any parents life. And still, when it comes to step back from a career path to raise them, men tend to disappear and hide behind the importance of their jobs not being affected, as their jobs are the better paid ones. (Remember point 2 – same work, same pay…)
In Germany, the state set a clear signal in the right direction: Women can take up to 3 years unpaid leave to look after a child and must be taken back into their old position without penalty to her career. A nice try, but what happens? Now women in the dangerous child bearing age, are less likely to be chosen for top jobs and set career paths, as they carry the risk of extended leave. Also, the state finances paternity leave, to enable shared responsibility. Still, so far this offer is rarely taken, mainly for fear to miss out on the next promotion or to weaken ones position within the company.

To change the mind-set, both, men and women have to consciously question their stereotype reactions in business situations and remember themselves again and again, that these days, there are more women than men with a University Degree out there and modern fathers are fully able to equally share household and childcare tasks. Doing so, the burden of disrupted careers no longer lies on women shoulders.

Stay true

While women should be more assertive and fight for their rights and careers, they should stay true to themselves. To copy male behaviour to become successful is pointless. Women and men are different and this is of great benefit to any company. The moment, when one or more women enter the boardroom of a company, the overall behaviour of the board will change, because the dynamic of the board will change too. Perspectives will become diverse; the board will be more inclined to see different angles of the overall picture. That’s the winning approach: to join forces (see Catalyst Study).

Bringing together the strengths of both gender will lead to the best results. Boards and C-Level positions should be equally placed with men and women and therefore, companies should create an environment, where equal pay and equal opportunities are more than phrases on a mission statement. It’s time that men not just hold the door open when entering a restaurant with a woman. It’s the doors in the heads and the doors to the boardrooms, that need opening.

About the author: Janet Clark studied in three countries, collected three degrees and started a promising career in Brussels. Then she tapped into the “woman trap”, got children and her career came to a sudden stop. It took her 5 years to get back on track. Since then she held positions as Vice-President Marketing Europe and Marketing Director before she joined CEO Worldwide as International Marketing Director.

Consultants can turn top management roles more effective and less lonesome…

Taking risks is inherent in top management roles, but some often suppressed aspects are isolation and doubt. With the increase of economic and political uncertainly and complexity, top managers need to be able to ponder alternatives and decisions with stakeless peers – something that they cannot find in their Boards or management groups.

This need to be addressed through an innovative combination of people and technology.

It is no secret that the 50+ employment market for senior managers is shrinking at an accelerated pace. Many seniors turn to consultancy services as an alternative. This move is not only motivated by economic reasons (income), but also by professional and lifestyle reasons. Indeed, life science and healthcare extended our life expectancy to a point where many seniors are fit and eager to continue working well into their 70’s.

The Internet and related technologies prompted and enabled tailored and personalized conduct of business (“The Long Tail”), where individualized products and services are sold in unit quantities to large numbers of consumers – at mass market prices.

Emerging business consultancy practices build upon these new realities and offer long tail senior management consulting. The underlying idea is to promote the wealth of knowledge and experience of available senior managers via relevant internet platforms, offering very flexible and tailored engagements – a phone conference, web session, several day missions or long term engagements.

Now, top management roles can be more effective and less lonesome, and obtain stakeless peer support in virtually any field. When faced with a critical decision, top managers can resort to one of these practices and obtain just the right amount of the right support – without having to pay arm and leg.

About the author: A Swiss based Board-level professional, Avigdor Luttinger helps technology providers achieve their business objectives by leveraging their competencies and the market opportunities; he is one of the founders of Magic Software Enterprises, and continues to dedicate a significant amount of his time to the company, where he functions as Vice President of Corporate Strategy. With over 25 years of experience and recognized expertise in the software industry, Luttinger is a frequent speaker and contributor at industry conferences and publications, and is also Executive Consultant at APL Technologies & Management Ltd. Luttinger currently covers Cloud Computing, Mashup technology, High Performance Workplace, Application Platforms, BPM and Integration. He holds an MBA from INSEAD in France and M.S. in computer sciences from the University of Lyon.

CONTEXT

Turnaround: A SMB company acting in ophtalmic lenses had to face a critical situation:

• Lack of cash, increasing delays for paying the suppliers
• Sales volume decrease
• Frequent delays in products deliveries
• High level scrap rate (14 %)
• Lack of manufacturing space

An equity fund having invested in this company asked to the owner-president to hire temporary an Executive Interim Manager as CEO to save quickly the situation.

It was urgent to negotiate on one hand a timing payment deferral with suppliers, on the other hand a short term loan with the banks.

No need to say there was no financial help to be expected from the investors.

PRELIMINARY ACTIONS

Diagnostic and draft business plan

First I performed a quick clear diagnostic which I made approved by the president, the fund and a few small shareholders.

Then I composed a small draft general business plan and strategic plan exposing the main improvement axes, also made approved.

These two first short steps are mandatory to get possibly relevant advices and to be sure that everybody will support the critical decisions to be made.

Note: I took the risk of starting here some immediate actions which seemed obvious for me, not waiting for the following global plans presentations.

Cash plan and debt rescheduling

It was time to present to the whole stakeholders (including customers and suppliers) a final business plan associated with a cash flow restoring plan.

I managed the debt rescheduling and short term loan negotiations, allowing recovering enough cash for ensuring activities continuity within a short but adequate time frame.

TURNAROUND ACTIONS

Action plan for recovery

A detailed action plan has been established in consultation with all managers and employees (and unions). The goal was to ensure a durable positive cash flow and to establish an increasing sales trend.

We considered 3 main improvement fields:

• Industrial
• Commercial
• Financial

Industrial field

It appeared that the supply chain was the core of the business. Historically production was dispatched within a few sites.

Restructuring has been carried out in order to get all the production volume concentrated in a single site and to simplify the supply chain. It has been performed in close consultation with the unions.

The industrial manager, unpopular, has been assigned to another function.

Volume effect has been a first effective way to increase productivity, to lower stocks and to decrease the working capital.

LEAN principles have been applied everywhere, from getting the customer order till receiving the payment.

In such an activity each order is related to a single distinct product. More than 1000 orders registered daily were launched and manufactured in a pull-flow way.

Each manufacturing step was traced and registered in real time, enabling any production problem to be detected immediately.

Preventive maintenance has been applied regarding to all the equipment.

Numerous cost reduction actions have been carried out: water recycling, energy saving, manufacturing methods, procurement…

After 12 months productivity increase has reached 20 % with a continuous improvement trend. Scrap has been cut by more than 2, reaching 6 %. Manufacturing reorganization (production lines number has been reduced by 50 %), stock decrease, and productivity improvement have induced free space availability sufficient to cancel a relocation project.

Commercial field

Restructuration: most of the commercial agencies have been closed.

Area managers have been maintained.

Customer service has moved to the central production plant.

A delivery time charter has been established and presented to the customers.

Products have been repositioned to the middle and high segments of the market, while basic lenses were sourced from Asia.

A new commercial strategy has been defined, targeting large accounts.

Products have been exposed in international exhibitions.

Sales increased 20 % after 1 year.

Finances field

A financial manager has been hired.

Accounting monthly reporting, traditionally encountering 2 months delay, was then posted within 5 days.

The cash plan was actualized on a weekly basis, as customer debt collection follow-up.

CONCLUSION

The fast realistic action of an Interim Executive Manager has prevented an insolvency issue.

Investors have never been asked for any capital increase.

An acceptable cash-flow level has been restored within 6 months.

Sales and productivity have been put on a positive improvement continuous trend.

LESSON LEARNED

Success is made thanks to the support of a motivated committed staff.

For reasons of emergency the Executive Interim Manager must compose with the current available experimented managing team, sometimes to be slightly reassigned or reinforced.

If properly and firmly negotiated a lot of change actions are possible.

ADVICES

• A company not closely managing its cash plan may encounter unexpected cash shortage. Then it is too late to set up classical solutions as factoring, too long to be put in place.
• To make a payment negotiation possible it is necessary to regain the confidence of the partners and shareholders in demonstrating a though control on the cash flow, in addition with the presentation of a credible business plan.
• Don’t do too much, focus on the critical points of the mission, be “lean”.

About the author: Jean-Luc Hauser is founder of a Business Unit integrated in an international pharmaceutical group and setting up (start-up) of an international R&D and production center in the medical devices industry field. He headed the recovery of an industrial site producing car equipment, just acquired after a petition in bankruptcy.

Towards a new form of consulting?

The future of SMEs goes through their ability to develop innovation and international business. This requires from top managers in these companies to be more aggressive and take more risks than ever: new offers, new products, new subsidiaries or acquisitions in foreign countries, new partners…

Taking risks is inherent in top management role, but it can be comfortable at times to get professional advice. Companies may use consulting services. Another solution is to rely on experienced managers, who can provide advice at a minimal cost.

Emerging needs in consulting

Companies traditionally contract with consultants when:

• They need extra brain power (strategic analysis, HR or legal problem, communication or marketing operation or technology expertise)
• They need external professional resource for design and sometimes implementation of a specific solution (global strategy definition, implementation of a new IT system, setting up of a new structure…)
• They need to solve an internal problem
• They want to “nurse” management (counseling or coaching)

3 parameters may influence the choice of consulting:

• Time: speed is more and more crucial in a fast evolving world
• Scope: local (same country), cross-border (export), or global
• Cost (not only the final amount, but also the phasing)

The market for consulting is well organized to answer most of these standard needs, but no so well prepared to offer solutions for the new emerging needs, as a consequence of evolving business necessities (time – international).

I will characterize these new needs by distinguishing what can be considered as the “high end” and the “low end” of the business:

“high end” or traditional

The customer is a large firm, the mission has a company wide scope and requires external resources, working for the headquarters. The time frame is months to years, and costs are in the range of millions of Euros.

The mission requires a strong and well established methodology and either very strong analytical skills and market intelligence, or a deep knowledge of an IT solution. It will mobilize a full consulting team, on-site or off-site.

“light” or emerging

The customer is a small to medium size company, or a subsidiary of a large company, facing an operational issue, possibly involving two different countries. Time is super critical (weeks), and accepted cost is in the tens of thousands of Euros.

Most of the resources are within the company. The customer does not want a nice methodology or theory, but good understanding of his specific problem, quick analysis, pertinent advice in both countries, from someone with strong operational experience, and potentially, a follow-up either through consulting or through recruiting. Each dollar spent over time must bring visible value immediately.

Standard consulting offer

For “high end” missions, large consulting firms have established over the years standards of quality which make them perfect resources for board level problems. Partners chase deals, young professionals do the analytical work, and managers drive the project and present the results.

These firms have produced over the years smaller size consultancies, created by defectors applying either the same methodology or their own version.

For “light” missions, these consultancies have neither the people nor the processes to do the missions, and their costs are prohibitive:

• Analysts are mostly young and bright professionals just out of school, selected for their analytical skills. As illustrated in several “career management studies”, they are not specifically interested in consulting, but in adding a prestigious line on their resume. Project leaders and managers are former analysts who have demonstrated their skills and willingness to climb in the hierarchy. They do not have most often an operational experience. Associates, partners and senior partners are either lifelong consultants, or former senior executives with a good network and a fat address book, recruited for business development. The actual operational experience of such teams is close to nil.
• Processes are heavy: partners negotiate a deal, the mission must be well defined, to protect both sides legally, and it takes time to mobilize the team, and the customer has little choice about the people who will execute the mission.
• Such structures have heavy costs. One day of an associate is already in the range of 10K. And his job is to sell as many junior days as possible. With even only a few junior days, all missions must be in the range of hundreds of k€, far above customer capacity.

“Light” missions are not a business for standard consultancies.

Emerging structures for “light”

The entrepreneurial frenzy at the turn of the century, a new generation of managers has been given the opportunity to grow and mature quickly. They have seized opportunities to create their business, or to develop internationally their business to take advantage of globalization.

The beginning of the 21st century being slightly less inspiring, first with the end of the bubble, then with the crisis, thousands of these professionals are now available.

These people have demonstrated their skills: intelligence, will power, ability to work at board level as well as to get their hands wet, pragmatism and international competence… And they have accumulated through their successes and the vast scope of difficulties they have had to overcome, a strong experience and most important: hindsight.

There is a consequent, worldwide and untapped reservoir of skilled and mature managers, able to provide high value to customers, provided that the offer can meet the need!

These managers cannot join large consultancies, as the cultural gap is too large. Instead, they now try to gather in groups of 5 to 30 to address the “light” consulting needs. These structures can be cost efficient and very reactive, but with two limitations:

• The variety of competences available to customers
• The efficiency of the professionals as consultants

Variety of competences

Each customer has very specific needs (business problem, sector, size, nature of solution, personality…). When such small consulting agencies only have 5 or 10 available profiles, it is very tempting to oversell the experience of a consultant to match customer’s demand (“You have worked 2 years for Shell when you were 25? Good, you’ll be our oil industry specialist…”, or “My consultant has been to China twice, he knows the country well!”)

Efficiency of consultants

Being experienced and knowledgeable is not sufficient. Listening, understanding, analyzing, finding the appropriate experience in one’s background, having enough humility not to impose but to propose, but yet enough confidence to convince… This is not granted to everyone. And most important, it is mandatory to find the good fit with the customer, who is himself a “boss” with a strong character… There must be no question at the end of the mission that the customer is ready to pay for the value that was given to him.

How to create a valid offer for customers?

To overcome both limitations, the main solution is to have a large variety of profiles to propose to customers, while respecting 3 mandatory necessities:

• High quality profiles only, to ensure the quality delivered to the customer
• Light and efficient administrative process, to be time and cost effective
• A highly flexible offer, to provide tailor made solutions for both consultants and customers

A large and reliable pool

Creating a large pool of consultants is not very complex, as all have ties in some communities on Internet (alumni, forums, investors networks…).

What takes time, competence and patience is not to gather resumes, but to select and qualify the profiles, and to feed a database with the appropriate data for future search. It may take years, but it then provides the “raw material” for an adapted answer to today’s “light” consulting demand.

Light and efficient process

Speed and cost effectiveness are key. And the business is in essence global. The administrative process must be light enough to propose a choice of adapted profiles in a matter of days or weeks. This process must adapt to all countries, as customers and consultants can be located or operate anywhere.

Flexible offer

It is not only a matter of adapting to customer needs, but also to minimize costs. Adapting to customer needs means being able to offer 3 days missions or 3 months missions. It also means to support the customer until full satisfaction, from very short mission to eventually permanent recruiting.

Last but not least, it also means being creative in the mission’s format: a final report is not necessarily a Power Point presentation at the customer’s headquarters, with people traveling miles, and paying for hotel rooms. It can be a 4 hours video conference call (or working session).

Conclusion

“Light” consulting can make the best out of modern communication means:

• Match customers and consultants all around the world
• Offer instantaneous answer, and tailor made service
• Provide high returns for a reasonable and progressive investment.

About the author: Olivier Pujol has worked over 23 years in many countries, positions, and companies. He has conducted business in 12 European countries, in Africa, North America, South America, and Asia, for companies like Schlumberger or Honeywell, as well as SMEs and start-ups. He has been in the position of CEO, COO, field manager, strategy and M&A specialist, business developer, and consultant. He worked on offshore platforms, in the jungle, but also in board rooms and electronic labs.