MARYLEBONE — This year is a big year of change. In technology, in the world economy, the world of sport, even in the way all our countries are run.  There are elections in America, France, India…

What is more significant in a country than a change of government?

And that’s what is promised in India, Malaysia, Taiwan, Serbia,  Kuwait, El Salvador, The Gambia, Armenia, Algeria, Madagascar, Libya, Mongolia, Mexico, Cameroon, Kenya, Sierra Leone, Ghana, Belarus, Ukraine, Ghana, Angola, Bhutan, Guinea, Lesotho, Zimbabwe and Togo.

New presidents in Yemen, Senegal, Mali, Russia, Dominican Republic, Mexico, Albania, France, Kenya, Turkey, the United States of America, Venezuela, Sierra Leone, Egypt, Kosovo and Zimbabwe.  Yes, Zimbabwe.

We know that the United States presidential election of 2012 is to be held on Tuesday, November 6, 2012. It will be the 57th presidential election.  And it will get a lot of attention.

But how about the world’s largest democracy?

Yes.  That’s India.  How about that one?

Or the big red splotch above?  Russia.

That’s important too.

There are other changes coming too.  Some, we seem to know for sure:

• Gold prices will keep going up.  And hit $2,000 and ounce in 2012, they say.
• The Internet is going to change.  A new IP address protocol will mean that companies may start building two sites for a doubled up Internet — the old one, and the new one.
• We’ll all be talking about faster, slimmer smart phones and The Cloud.  If you don’t know about either, now is the time to do some research.
• Plus many more things you may want to share?

This time next year things will be very different.

I promise.

Businesses will fail.  Some will be dominant that you haven’t even heard of.  Yours will merge, divest, make a 90 degree turn, or implement similar significant changes.

So, what are you doing about it?

Well it is a topic that is quite dear to our hearts at Able and How.  We are launching our Able and How Change Index this year.  And our change management work the world over continues at a pace.

We will be keeping an eye on business, political and social trends this year.  And keeping you up to date with the Able and How Change List (look for it soon in our News section).

Change is good.

Get into it with us.

/df

P.S. And, by the way, NASA assures us that the world is not going to end.  After many years of fielding wild calls, they were forced to put up this website.

LONDON — It’s been hard not to think about Korea this week.  But I have different things on my mind.  Not the loss of a dictator.  Not the worry that still has South Korean’s practicing evacuations like WWII Britain and Cold War America.

I am thinking about Korea’s fertile business culture and the country’s uncanny ability to reinvent itself, rebuild and refocus just in time for tremendous success.

See if you can read this bit without stopping in your tracks:

• in 1961 South Korea ranked 117th in the world for arable land per capita (behind Saudi Arabia and Somalia)
• in the last 50 years Korea’s per-capita GDP has grown at 23,000 percent
• today the tiny country (smaller than Iceland) has the world’s 12th largest economy by purchasing power
• unemployment is 3.2 percent
• one of the world’s lowest rates of public debt
• 80% of the 49 million people live in urban areas
• Koreans are four times as likely to have high-speed internet access as Americans and they pay very little for it

A series of seemingly prescient government decisions have constantly shoved the economy in the right direction.  Even through the tough economic times in the late 90s and mid 2000s the countries has seemed to make the right choices.

Today they are pushing — against their own traditions — for more entrepreneurship.  And I wouldn’t bet against them.

In fact, I’d like to be there now. If the chaebols’ would give us a call? Samsung, LG, SK… we’d like a word.

/df

LONDON — I talked to an M&A banker on the weekend.  Made me think of my time at high school dances.  Always standing on the wall, trying to look cool.  But never out on the actual dance floor.

The merger and acquisition market is a bit quiet at the moment.  And amen to that.  We’re busy enough without it.  Businesses are — rightly — taking advantage of the quiet and their own peaceful progress, to transform their operations.

We’re working on big “transformation” programmes on several continents and in a diversity of sectors.  Change management is in high demand.  And that’s good.

But M&A will be back.  My friend should be up frugging, ‘cutting some rug’ and doing The Hustle by Q2 at the latest.

Transformation is the powder room before the ball.

That’s my prediction.

Watch this space.

/df

PICADILLY CIRCUS — Looks like the sun might actually come up in London today.  That’s a relief.  And one of my biggest concerns.  Yesterday was dark and I can’t handle that.

So, how lucky am I?  That trivial issues like that concern me?

Yesterday umpteen decisions were made that affect all of our lives and futures.  Not just in London, New York and Beijing.  But in Rome and Athens.  In Geneva and Berlin and Paris.  And in Damascus and Doha. And…

Open the paper and have a look through.  There are an amazing amount of fundamental, big decisions being made by people in places all around the world.

Last Monday Chancellor Merkel said she thinks we’re in the biggest global crisis since 1945.

And she and a group of other diverse, independent leaders, are trying to make sense of the whole thing.  New leaders are being sworn in.  Senior financial gurus are being tapped up.

And big decisions are being made.

In recent years here in the UK a chorus goes up of people saying: easiest job in the world! Paid for nothing! Crooked! Useless!

And today they are doing more than any of us to save our collective backsides.  That’s what leadership is — and probably what we need.  It may even be more than we deserve.

/df

DOHA, QATAR — We’re working on four different ‘transformation programmes’ at the moment. Combined they are on three continents, in over 30 countries.

You would think that would provide some shocking contrasts.  But it does something quite different. It shows startling similarities.

Everything has superficial differences: language, geography, industry, structure…

Yes, those can seem superficial.

The issues in big business transformation generally fall into two buckets: human and process.

Human
When I worked in the airline industry we used to talk about “human factors in aviation”, and I thought that was very funny.  In that, without humans we would not need commercial aviation at all… so humans were a pretty key ingredient.

Transformations can be seen the same way.  Strategy teams and professional project managers can seem quite content to act as if humans are not involved.

And how many businesses exist without ‘human factors’?

Coordinating, informing, involving, managing, aligning, working with and working around humans is one of the hardest parts of any transformation.

Ask anyone with the scars of a big change programme, successful or not, and they’ll say communication and people are the two most under-appreciated areas.

Process
Businesses need a sense of direction.  Even restaurants must know what is important (filling tables) and what to do to try to fill more.

However most large businesses are more complex than that.  With function, regions, business units and many horizontal layers of people influencing or directing each others’ work.

To create and sustain a sense of direction you need processes.

There is no one set of words or no single way of talking to people.  You cannot expect a data specialist to need the same information as an assembly line worker.

In order to be clear on what you are saying, to create a core of content and to move and support the transformation you need to have a plan… several plans often… and many processes to follow to see that you are consistent, coordinated and coherent across all of your business.

And then you need to sustain that over time.

Easy. Right.

Same, same, not always different.

/df

BAHRAIN — This is my first time in Bahrain.  That leaves only really Oman in the area that I haven’t been to / worked in.

United Arab Emirates?
√ Check
Saudi Arabia?
√ Check
Kuwait?
√ Check
Qatar?
√ Check

It’s a part of the world that many people can’t (or choose not to) understand.

In the last three weeks I have flown over it 5 times.  Three of those times I have flown over Iraq.

Well, it’s on the way.

The other two times we diverted.  And flew over Syria instead.

But although areas of conflict may be the image and abiding sense that many people have of the Arab Gulf states, it’s not representative.  (No more than when I was a boy living in London and people always thought I’d be caught up in IRA bombs.)

‘The region’, as locals call it, is very diverse and very active in sport, culture and business.  The region is quietly taking on the world.

And that’s not a bad thing.

Change is good.  And planning and communicating change in this region is important.

The oil and natural gas revenues have allowed visionary leaders to invest heavily in construction and in businesses.  The foreign investment is well documented — both successes and failures.  What is less well documented is the local investment.  It’s immense.

And as a result the region is re-writing business laws.  Some of the smartest people working in business anywhere are working here.

It’s something to see.  Long may it last.

/df

AT HOME — I’ve been trying to figure out how I ended up with a four-digit dentist’s bill this month, without ever discussing even the procedure, let alone the fees.

And I can’t really make sense of it.

Similarly we have been working with a mid-level legal firm a few years and we keep getting bills through the door with what seems a very random assortment of numbers on them.  When we ask for ‘detail’ we can (twice so far in three years) get a long list of random adjectives and nouns:

 research
 meeting
 discussion
 teleconference
 draft

No time is listed against anything.  No context is provided.  Sometimes the bills don’t even have dates on them.

And we pay them!  I wonder why sometimes…

So let me tell you about how we — as a management consultancy — manage our ‘contracting’.

NO COSTS UNTIL AGREED

We will happily talk to you, meet with you, sometimes even work with you, before we even get to discussions about what kind of work you need, how we’d provide that… and what that would cost.

Those discussions are open and free.  As well as free-flowing.

Sometimes we’ll even tell you that we aren’t the right people to work with you.  Sometimes we’ll say that you need less support than you think.  The conversations are always interesting and we’d always encourage you to have them.

After we have discussed the problem we’ll start to talk about how we’d approach it.  At that point — and only once you’ve asked for it! — we would prepare a Statement of Work.  You would receive that.  Look at it, discuss it… and then hopefully sign it.

Only after all that… we’d start working and you’d start to incur costs.

EXPLANATION OF FEES

Like most consulting firms we charge on a ‘time and expense’ basis.  That means we bill hourly for work.

Some people find that hard to imagine.  So let’s put some parameters around even that to make it clearer. 

We set an estimate of how much the work will cost with you before we start.  (See Statement of Work!)  In that there is a single number that we have agreed.  Our work may come in below that but it cannot come in above it.  In other words, you will know the fees and your job is not to worry about each hour.  Fees shouldn’t really be a concern after we start.

…AND EXPENSES

Then there are the horror stories about expenses.  I’m not sure where they come from.  Probably from the rare occurrences when bankers or big accountancies spend too much at the bar.  Expenses should be part of the contract.  They are with us.  We work out the travel policy with you — if you want us to travel — and frankly, we often just take the Tube.  Expenses are not a big part of it.

What we like about consulting is the opportunity to make a real change and have a positive impact on our client businesses and our client’s careers.  Clearly we’re going to charge fees along the way.  But that shouldn’t keep people away.

If you have a question about it… please just call.

And if anyone is charging you like my dentist does (sorry George), just don’t put up with it.

/df

HYDE PARK CORNER — I had a run of texts from a politically obsessed British friend last week. “Have you heard the latest joke about Chris Christie?”

I hadn’t. In fact I hadn’t even heard of Chris Christie.  I was still catching up on the impossible rise and fall of Rick Perry (who I also hadn’t heard of a few months ago.)

So, yes, we’re talking about the US Presidential race.  And Mr Christie, as I have just started to find out, is the current Governor of New Jersey.  Furthermore, it seems that for a few hours last week he was also going to be “the next President of the United States.”

It’s not hard to see why he backed away, even after backing away before.

In many respects you could argue that business is much more forgiving than politics.  Corporate leaders don’t have to submit themselves and their families to the kind of attention and ridicule that politicians do.

However, on the other hand, leaders in business have to appeal to more demographics than politicians.  They have to be leaders of divisions, countries, hierarchies and Boards. 

Being religious might be a requirement for the US Presidency.  But it’s a detriment to a business career.  Leaders of industry need to be able to appeal to people of every background, so long as they can hold a job.

Similarly Presidential candidates have to submit to comments and sniping about everything from their weight to their daughters.  While business leaders may be able to keep their peccadilloes hidden, they also don’t have staff at their disposal to burnish their image.

As Chris Christie found out, leadership comes with it’s challenges that have little to do with the job.

Some days you have to wonder, who’d want to do it?

/df

Two guys, a garage and a plan

LONDON — It’s been three fairly eventful years.  I suspect you’d be hard pressed to look at the last 25 years and come up with three more volatile years in which to be in business.

Able and How was born on 08 September 2008.  If you look here you can see the enthusiasm and excitement of that day. (We asked people to say hello and many, including our moms and kids, promptly did.)

A year later the situation was not as it had been.  The economy in that first year was… not good.  Many of our respected colleagues and friends were out of work.  We were still at it.  And asking for celebratory haikus.

Last year at this time we were coming out of a more settled summer and seeing signs of things picking up.  The optimism was palpable.

But some common themes were also starting to emerge.  Have you spotted them?

1. We’re lucky to be in a brilliant business where we can make a real difference.
2. We’re in it because we believe in what we do
3. We have an amazing team
4. We love doing it
5. We are still in it because we get to work with brilliant people

I am sure it sounds too obvious and too superficial to say that our clients make our business.  However for all of us who work at Able and How the good people who have put their trust in us have made it work.

Thank you. 

Take a bow.  Say hello below.

/df

CHELSEA — The problem with change is that you cannot always foresee what might happen next.  So you create an anticipated direction of travel and risks, issues, dependencies etc. along the way.

That’s how it’s done.  In a nutshell.

The problem with Britain’s big banks though is not that they don’t know what might happen next.  They do, but they’re determined to fight against it.

It is clear when you compare the banking systems of, say, Canada, what the problems of the UK and US systems were.  You can’t really argue it.

As the Chancellor George Osborne has said:

Take the financial sector out of the equation and economic growth in the rest of the economy during recovery has actually been above its average rate of the last two decades.

In fact, the Office of National Statistics says that Britain’s banks are responsible for 1/3 of our national fall in output since 2008.

That’s not really all that funny.

According to many of the banks the recovery is too unclear for action to be taken now.  However, for all the lack of clarity they see around the recovery, the implications of further regulation do seem clear to them.

And they know that that change wouldn’t be good.

Which, of course, is total rubbish.

Change is good.

When it comes to further regulation… and ring-fencing of retail banking, for example… there can really be little argument.

Let’s get on with managing the change.

/df