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UNSTUCK
By Tom Pryor
"Will
the flight attendants for AirTran Airways flight 110 please go to gate
16 for immediate departure?"
I
heard that announcement on DFW Airport's intercom. It answered the question
as to why my flight to Atlanta was late and not boarding. Increasingly
concerned that I would miss my connection and get stuck in Atlanta, the
flight attendants finally showed up... carrying their to-go meals from
Chili's! And after take-off, passengers were stuck with parched throats
while the flight attendants delayed beverage service to eat their lunch.
Why did AirTran profits drop 88% in 2004? My experience is symptomatic
of the root cause for the decline. Flight attendants with an attitude
of putting pasta before passengers can become pandemic. Like most financially
strapped airlines, AirTran appears stuck with outdated processes, policies,
perspectives, purpose and people.
One of my favorite books of 2005 is Unstuck.
If you are stuck in an undesirable situation, authors Keith Yamashita
and Sandra Spataro offer three simple steps to get unstuck:
- Admit
you're stuck
things aren't going well, and you're coming to terms with that fact.
"All great people get stuck at some point. The trick is knowing
how to get unstuck." [1]
- Diagnose
why you're stuck
you definitely feel stuck,
but you're not sure why.
The authors list The Serious Seven reasons we get stuck:
- We
feel Overwhelmed because we
lack a rudder or resources.
- We
feel Exhausted because of fear
or lack of fun.
- We
feel Directionless because we
lack a strategy.
- We
feel Hopeless because we lack
purpose.
- We
feel Battle-torn because
we fight each other, not the enemy.
- We
feel Worthless because we don't
know what success looks like.
- We
feel Alone because we've lost
our religion.
- Get
unstuck
you know why you're stuck, and you are
ready to move forward.
To get unstuck, the authors recommend trust
find principles and
people you can trust.
"Trust prevents having to hoard information, question other teams'
agendas, suppress wild ideas, or otherwise indulge in such time-wasting
activities." [2]
In recent weeks, I've seen or experienced examples of how people
and organizations successfully got unstuck.
- Stuck
on logic
Success is not logical. Logical is doing
what everyone else does, yet everyone is not as successful as you
want to be. The University of Northern Colorado's business program
was stuck, generally regarded as average, largely overshadowed by
a number of competitors within a fifty-mile radius. Competition's
strategy was degree program proliferation. To get unstuck from the
shadow of their competitors, UNC's business administrators and faculty
cast a new vision
become Colorado's best undergraduate business
educator.
UNC's Kenneth Monfort College of Business achieved their goal in
2004, winning the Malcolm Baldrige National Quality Award for Education.
Among the tools administrators and faculty used to get unstuck were
Six Sigma (Plan-Do-Check-Act) process improvements, Key Performance
Indicators linked to their vision and improved costing. When asked
if freshman consume the same amount of activity costs as seniors,
assistant dean Tim Jares replied, "We currently do not have
a differential tuition for upper and lower division, but starting
next year that will change. We concluded that there was a difference
and that upper-division should be charged more." UNC is
a great example of an organization that successfully applied all
three steps over a period of years to get unstuck.
- Stuck
on the hard drive
According to Professor Robert Kaplan in the November 2004 issue
of Harvard Business Review, many organizations are stuck with an
Activity Based Cost (ABC) system they do not use.
"The solution to the problems with ABC is not to abandon the
concept. ABC after all has helped many companies identify important
cost and profit-enhancement opportunities through the repricing
of unprofitable customer relationships, process improvements on
the shop floor, lower-cost product designs, and rationalized product
variety." [3]
(To read the HBR article, click
here.)
For organizations stuck with an ABC system they don't use, co-authors
Bob Kaplan and Steven Anderson recommend: (a) ask managers to perform
their own activity analysis and activity costing; (b) use time as
the cost driver for every activity; and, (c) update your ABC system
on the basis of events (i.e., process changes) rather than the calendar
(i.e., monthly or quarterly). I totally agree that (a) and (c) help
organizations keep ABC unstuck. I believe using time as the single,
simple method to allocate costs to customers and products is simplistic,
but thought-provoking none the less.
- Stuck
on myself
"I can manage my own investments."
That was my attitude for too many years. Because I learned the
basic principle of "Buy low, sell high" while getting
my BBA in Finance, I felt asking for investment advice would be
perceived as a sign of weakness. But when my stock portfolio failed
to grow for several years, I admitted to my wife that "We're
stuck" and advised her that I might be the root cause.
We agreed to engage the services of a certified financial planner
to get unstuck. Our balance sheet in 2005 is markedly better as
a result of our action.
David Bach offers good advice to get unstuck in his new book Start
Late, Finish Rich, "You can't coulda-woulda-shoulda
yourself to wealth or happiness. Instead, decide today --- right
now --- to let it go. We all make mistakes. But let's not waste
one more ounce of your energy, spirit, or time thinking about them,
because all that will do is hold you back." (4)
- Stuck
on empty
Do any of the following questions sound familiar?...
"It's not like things are broken, but it doesn't feel right
either."
"I'm pooped."
"If
it's not one thing, it's another." If left untreated, exhaustion
slowly gives way to cynicism. Shutdown, due to a lack of resources,
may not be far behind.
While purposely stuck on achieving their mission
The mission
of Southwest Airlines is dedication to the highest quality of Customer
Service delivered with a sense of warmth, friendliness, individual
pride, and Company Spirit
Southwest Airlines is not stuck on
how to achieve it. SWA is continually implementing improvements
to achieve the mission profitably, including the use of Activity
Based Costing. According to Chuck Thomas, SWA's Director of Financial
Analysis, "Instead of implementing an enterprise-wide Activity-Based
Costing model, we chose to model sub-segments of our business."
In recent years Southwest Airlines has used ABC to improve their
Rapid Rewards frequent flyer process, analyze cargo pricing, and
benchmark activity performance between stations. Unending, incremental
improvement insures Southwest Airlines P&L does not run on empty.
People
and organizations stuck-in-the-muck eventually die. Instead of remaining
stuck as the nation's number one most dangerous destination, Mayor Rudy
Giuliani lowered New York City's crime rate by fixing broken windows.
AirTran can improve profits by fixing the broken attitudes of tardy flight
attendants.
What procedures, people or processes are you stuck with that are holding
you back? The positive attitude of Chuck Thomas and his peers at Southwest
Airlines are a great reminder that making progress and having fun are
not mutually exclusive. Make
'05 your year to "Get unstuck, be happy."
[1]
Unstuck,
Keith Yamashita and Sandra Spataro, Portfolio Books, 2004
[2] Unstuck,
Keith Yamashita and Sandra Spataro, Portfolio Books, 2004
[3] Time-Driven
Activity-Based Costing, Robert S. Kaplan and Steven R. Anderson,
Harvard Business Review, November 2004
(4) Start
Late, Finish Rich, David Bach, Broadway, 2005
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