The CEO - All Posts - Ze'ev Ronen - Business Excellence

It is widely accepted that without data and careful analysis, businesses cannot advance. Not assessing and not controlling processes is like driving a car without the ability to see the way or check how much petrol is left in the tank.

The CEO of Leumi Bank, Mr. Hanan Freidman, has recently made a public announcement which revolutionizes the service the bank provides to its customers. Hanan committed to personally make sure that all customers’ requests are resolved within 24 hours and if not, customers are encouraged to communicate with him on his private WhatsApp. This, among other actions the bank is implementing,  will overturn the way customer service has been practiced in Israel for decades.

A few days ago, I went shopping at a D.I.Y store Upon entering, I was directed to the department I was looking for, but no staff member was present. It took me a few minutes to locate someone who was able to tell me the name of the employee responsible and a few more minutes to find the employee who answered my questions about the product I wanted to buy.

Today I present five CEO’s excellent decisions that led them to great achievements. Some of those decisions were taken at a moment of crisis and turned things around. Others were taken by intuition and led the way to success. Making these decisions required courage and determination.

This article is not about momentary misjudgments or wrong decisions made on the spur of the moment. It is about mistakes which are made by CEOs who are driven by approaches that, in my opinion, are incorrect and can cause substantial negative impact on business results.

One of the first stages of personal coaching is identifying personal goals. Not defining, but identifying. We don’t choose pretty words and decide those are our values only because they look good. Personal values are an inherent part of us.

At the time Moshe was the CEO of Eyal Optics, and I was just starting as the CEO of Shamir Optical Industries. Shamir Optical and Eyal Optics had a complex relationship. On the one hand Eyal were our clients. We supplied them with glass molds for manufacturing plastic multifocal lenses, and they owed us a lot of money. One the other hand, Eyal were our "home lab".

wonder of wonders, CEOs who aren’t machine-maintenance people, are sure they "know enough", or "know best", how to maintain the "human machines" in their company. And if not the CEO, then one of the executives will be able to do it, in addition to their regular job.

At first results seem great. Especially when before the authoritative manager there was an indecisive one. Now decisions are made quickly and everybody falls in line. But this kind of management suffocates the company. It suppresses positive initiatives and when the authoritative CEO makes a mistake no one will dare correct them or point out the possible harm.

We're nearing the end of 2019, have you prepared a work-plan (and budget) for 2020? Maybe you have a three-year or five-year plan? If the answer is no – this is the last chance to do so. And maybe you think work plans aren't necessary?

About a year ago I started working with a medium-sized company, about 200 employees, and a shift-supervisor listed as CEO a consultant who would come to the site once a week. I asked what job the actual CEO did, and he said he had no idea.

Often excitement is so overwhelming that companied start developing a new business without first examining risks and chance of success. Sometimes, we look at a business close to ours, competitors are profiting in it, and we decided to enter it and join the big players. We jump into the water, and discover too late we jumped into a red ocean.

Around the end of every year I get questions about creating a work-plan for the upcoming year. First, I'd like to point out that the very end of the year is too late to start working on a yearly-plan for the next year. Additionally, it is better to base yearly plans on a larger, multi-year plan.

Aviv set up a company and supervised production and sales in the local market from day one. Unlike many other founding CEO's, Aviv understood that if he wished to grow, he would have to let go, to bring in managers and give them responsibilities. Aviv also appointed QA and HR managers in the early stages, which is rare.

I am sometimes asked if I provide organizational consultation regarding management conflicts, and I answer that usually the source of the problem lies in the missing parameters in the allocation of authority, within management, and from there, the situation spreads to the entire organization.

One of the most popular articles from my blog is one I published last year on coping with employee absenteeism. In the article, I discuss how, 15 years ago, the significantly high rate of employee absenteeism was handled through positive rewards for employees who were never absent, along with interest and concern for the health of anyone at home sick.

One CEO once told me he often gives advance commitment for unrealistic delivery times he has no possibility of reaching. But if he doesn't commit to brief delivery times, he won't get the order.

In the past, when I managed a company that manufactured and supplied office furniture to institutions, I began my term by visiting the delivery area to find out how deliveries are handled. To my surprise, I discovered that there was no follow up on packing lists and that the drivers didn't always turn them in.

One employee interviewed said that she loved working there. People were nice and she enjoyed working with them. I showed this same employee a photo of the sign over the door and asked her if she recognized it.

We may often be faced with a specific problem, a breakdown. The breakdown may be in production, in purchasing, in sales or in any other realm. Our first goal is to resolve the problem: to find the reason, to come up with a solution and to carry on.

I often hear the claim that salary is the key to employee motivation. Every time, I ask whoever said it - what makes their work interesting? Why do they stay long hours after work even though they aren't getting paid for extra time? The answers are usually in the range of "my responsibility", "I'm significant", or "people listen to me". "And where is it expressed in your salary?" I ask. Here is where the conversation usually ends. I'm under no illusion that I've convinced my companion, although perhaps sometimes I have. Let's talk about the real factors that generate motivation and interest in work for everyone.

You know that saying that a lot of CEO's repeat, "My door is always open to my employees" ? When I was a CEO, I, too, thought my door was always open to my employees, but was that really true? Not necessarily.

When the dilemma is personal, I recommend making your own decision in all cases. Remember that everyone, including those close to you, has personal agendas and interests in your decision. However objective the person you choose to advise you may be, they will be influenced by their own attitudes and perceptions of the matter. When the decision is an organizational one, the situation is different, and I'll expand on this later.

This month will see the publication of my first book will: Manage! Best Value Practices for Effective Management. To celebrate it, I would like to dedicate this weekly article to the role of the ideal manager. 

This is the first chapter from my new book: Manage! Best Value Practices for Effective Management. The purpose of this book is to provide a fresh look on how you can improve business results by making your company matter to your employees.

Many CEO's have attained their management positions without any training or preparation. Almost all the direct managers of employees that I have met (work managers, department managers, line managers, etc.) were promoted to their positions because they were good employees.

Once I came to a small company whose employee turnover was extremely high. Few employees would stay for more than a few weeks before leaving. The CEO would shout at his employees for any minor transgression. I asked him why, and he said they needed to learn (usually they learned that it would be best for them to leave).

About six months ago, we published an in-depth survey here on the traits required for successful management. We wanted to explore how the general public perceives the image of a successful manager, as related to the character traits and talents a manager requires.

Sometimes it seems to me that CEO's are afraid to confront management members who are not maintaining objectives. Instead of demanding a plan of action to attain the objective, the CEO herself explains to herself why they haven't attained their sales, production or other objectives.