Archive for April, 2009

Questions and Answers

We are trained our entire lives to seek out answers, are rewarded for having the answers, can make a living providing the answers.  But is that really the answer?

“It is better to know some of the questions than all of the answers.”

- James Thurber

As a leader, you may wonder what the question is then…

Do you move your team, department, organization forward by providing all the answers, or asking the right questions?  The success of your work, your true value and the empowerment of your staff depends on the right questions, not the right answers.  More here.

What questions do you ask as a leader?

Varying Opinions – One Version of the Truth

Big decisions are being made at every level in our country.  From federal stimulus funds and corporate bailouts to layoffs and the closing of small businesses, schools and parks.

I wouldn’t wish the burden of making these decisions on my worst enemy.  There are no great solutions, just a tattered list of degrees of pain.  That said, getting caught up in the emotion or politics of different courses of action can be detrimental to the final decision and those that have to live by it.

Opinions may vary widely – facts never should.

Data-driven Decisions

Any decision of this magnitude requires careful thought and decisive action.  The decision should not be unduly influenced by the majority, or a particularly loud stakeholder/constituent group.  These are opinions.  Doesn’t make them categorically wrong, or of bad intent.  Just not necessarily based on data.  Decision-making should begin with the facts – the data.

  • Example #1: real estate.  I like my house and know what I would sell it for.  In sitting down with a real estate agent, they get out the “comparables” -  historical sales data of a 3br, 1bath house in my area.  From there they develop what they feel is a reasonable sales price.  I can argue for the fact that we put in a new sewer pipe (once every 80 years…) or did some great landscaping.  This doesn’t directly influence sales price…the facts.
  • Example #2: closing a sales office.  They are the ‘best’ sales staff, know our products, work hard, have established accounts and years of experience.  The office also posts the lowest performance to goal scores.  Based on the data, this is not an office to keep open.

Data is the Guide

All decisions CAN be data-driven.  This doesn’t mean only relying on the data.  There may be greater political considerations to following what the data says.  The nuance here is for decision-makers to first gather the facts, the ‘one version of the truth’ – so they have a clear understanding of the situation.  From there, a decision may come.  Then, they can look at the non-facts: constituents, politics, etc.  This may/may not influence the fact-based decision.  That is where leaders start to really earn their pay.

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What examples do you have where fact had to overcome anecdote to make a good decision?

History: 100 Sweet Years

This May, Pearson Candy Company of Saint Paul, Minnesota is celebrating 100 years of sweet success!  This is an employee-owned enterprise specializing in Salted Nut Rolls, Bun Bars, Mint Patties, and my forever favorite, the Nut Goodie.

nutgoodie

In The Beginning

According to a company press release, “Originally founded by three Pearson brothers as a candy distribution firm, the company soon began manufacturing its own candy. The Nut Goodie made its debut in 1912 as a premium 5¢ candy bar. In 1933, the Salted Nut Roll debuted and for a brief period was called “Choo Choo Bar” to distinguish itself from other Nut Roll items available at the time. The 1951 acquisition of Trudeau Candy brought the 7-Up candy bar and Mint Patties to Pearson’s line. The Pearson family retained ownership of the company until 1968 when it was sold to ITT/Continental Baking (NY). In 1979, the company was then sold to The Confections Group and the 7-Up candy bar was discontinued. In 1985, the company was purchased by two employees who once again gave the company and its products the attention deserved. The Bun Trademark was acquired from Clark Bar America in 1998. These Bun cluster items were a natural compliment to the Nut Goodie and offered expansion into additional markets.” (complete history here, click on “About Pearson’s”)

Employee Ownership

In 1985, the company was purchased by two employees, Larry Hassler and Judith Johnston.  They currently serve as the CEO and COO, respectively. Revitalizing the core products of the company brought Pearson’s from the brink of doom to profitability by 1992.  Revenue is in excess of $40 million (USD, 2008) and 170 employees work on three production lines to continue producing local, regional and national favorites.  The Salted Nut Roll and Mint Patties account for approximately 80% of sales. (I guess I need to start buying more Nut Goodies! ed.)

What’s Next?

What’s next for Pearson’s?  Nada. They plan to keep making these candy bars just right for another 100 years.  This is a refreshing strategy in a business that brings us frosted, un-nutted, almondized, multiple chocolate types line extensions to products that were just fine as originals.

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What would your business be like if you didn’t pursue innovation by creating something new, but thought of innovation as making your current products the best there is?