www.viewpoint.net.nz - NZ Transport, Aviation, Logistics & Supply Chain Blog

What is leadership?

• The manager administers; the leader innovates.
• The manager maintains; the leader develops.
• The manager accepts reality; the leader investigates it.
• The manager focuses on systems and structures; the leader focuses on people.
• The manager relies on control; the leader inspires trust.
• The manager has a short-range view; the leader has a long-range perspective.
• The manager asks how and when; the leader asks what and why.
• The manager has his or her eye always on the bottom line; the leader has his or her eye on the horizon.
• The manager imitates; the leader originates.
• The manager accepts the status quo; the leader challenges it.
• The manager is the classic good soldier; the leader is his or her own person.

I believe every business needs great leaders and great managers! Trying to segregate the functions of a leader from that of a manager is very problematic. Most people can have some qualities of leadership in one area, but not in others. Does that make them a leader or not?

I guess the key question as always is; what am I doing to become a better leader?

Quote from Warren Bennis

Agree, disagree, have a question? - Post a comment now.

What Origin Pacific lacked

It has been said 'The best way to make a small fortune in aviation is to start with a huge one'. I am sure that Mike Pero might have personally learnt this lesson after sinking $10 million into Origin Pacific. The full-blown disintegration of Origin Pacific last week, confirmed New Zealand’s domestic aviation market has become fully mature.

No one, other than a huge multi-national, has the resources to compete with Air NZ. They, along with Qantas who choose not to do regional, are the Super Powers [see previous post] in the domestic market and there is simply no room for ‘secondary [ugly] powers’, like Origin.  In the ‘business guerrillas’ camp we have small niche operators like Air2there, Sunair and Sounds Air. Each has very niche markets that Air NZ simply doesn’t care about or is too small to enter.

BIG question - Can you become BIG without directly competing with the Super Powers?

Short answer - No!; but the road of business is littered with companies that tried.

There is a place for specialists with a niche market, but ultimately they have to be prepared to stay as “guerillas”.

If you are not happy being a guerilla, then sooner or later you are going end up in the middle ground. To stay there and grow to be BIG, you will have to take it to the Super Powers. Once you reach the never never land of the Secondary Powers, you now must compete in price, service and features. If you can’t compete in that position for a prolonged period of time and if you can’t continue to grow month on month, you are near stuffed!

Now here’s the challenge if you want to be big, somehow you need to grow and yet maintain the nature of guerilla warfare. Making very strategic decisions about the markets, even specific customers you want, the service you will offer and the prices you will charge. If you can continually move the battle front, the Super Powers will struggle to fully understand what you are up to. They will respond with a defense that is already irrelevant as you have move to the next battle field and target.

In my opinion Origin was doomed to failure before their first flight left the ground. They tried to behave and act like super powers, then align themselves with super powers like Qantas, rather than establishing profitable niche markets and attacking and growing through guerrilla warfare.

Agree, disagree, have a question? - Post a comment now.

The big, the small and the UGLY

The leader must take up a strong position, inspire others to follow him, discover where the enemy is weak and attack there. – The precepts of Ssu Ma Jang Chu – 400BC

In general, the marketplace looks like this;

The Super Powers (Big)
They own the territory, set the rules, and, like the 400kg gorilla, sleep anywhere they want. The big dogs get the biggest pieces of meat. The superpowers are in the production business – they are as concerned with protecting their position on the high ground as they are with gaining new ground.

The Secondary Powers (Ugly)
Their job is to get bigger so that they do not get smaller. They often achieve this by knocking off a lot of small companies rather than attacking the major powers. It’s easier to eliminate the weak than to attach the strong.

These secondary powers are in a vulnerable middle ground. They are facing attacks from both the big buys and the guerrillas. As an industry moves to maturity, the marketing action polarises to the big at one extreme and the small specialists at the other. The never-never land where you never want to be is a medium-sized company in a mature industry.

The Business Guerrillas (Small)
In third place is everyone with a small market share, specialists in a big market. These firms biggest threat is the 800kg gorilla.

What interests me from this quote of “Sun Tzu – Strategies for Marketing” is the never never land. In New Zealand I think it is fair to say that some markets have either fully matured or are very close. This leaves very little room for The Secondary Powers.

Take the shakedown in retail, there are very few medium sized businesses. They are either stores that are a part of one big group, or small boutiques that specialise. Recruitment world wide is a mature market, huge multi-nationals or smaller specialists.  In NZ at present there are a few Secondary Powers, but I am not sure that is a great place to be.

Within transport and logistics, I believe that the Courier Market has neared maturity, Freightways, Express Couriers and the rest. 3PL/warehousing continues to mature and make entry very difficult without being specialists.

Interestingly enough, the Transport industry is only over the last few years starting to show signs of maturing. There are more acquisitions, mergers and off-shore investment. There still remains a significant number of Secondary Powers. The challenge for them in the next few years either become big, or settle for being specialist, staying in the middle ground is never where you want to be!

Agree, disagree, have a question? - Post a comment now.

Interview Questions

A timely reminder for people recruiting Drivers and Forklift operators.

Juggler Interview

Circus Manager: How long have you been juggling?
Candidate: Oh, about six years.

Manager: Can you handle three balls, four balls, and five balls?
Candidate: Yes, yes, and yes.

Manager: Do you work with flaming objects?
Candidate: Sure.

Manager: ...knives, axes, open cigar boxes, floppy hats?
Candidate: I can juggle anything.

Manager: Do you have a line of funny patter that goes with your juggling?
Candidate: It's hilarious.

Manager: Well, that sounds fine. I guess you're hired.
Candidate: Umm...Don't you want to see me juggle?

How often are people placed into work without actually seeing if they can do the job?

Quote from Seth Godin's Blog

Agree, disagree, have a question? - Post a comment now.