Wednesday 31 July 2019

Shooting for the moon


I loved following some of the recent news and programmes to celebrate the 50th anniversary of the Apollo moon landings.


I remember watching it on the news as an 11 year old boy. Armstrong’s historic steps took place in the middle of the night for UK viewers. That may be why the first moon walk from Apollo 11 is imprinted slightly less on my memory than Apollo 8 breaking from earth’s orbit to head for the moon a few months earlier. Both are brilliant, mind-blowing memories.

The wider Apollo programme, from Kennedy’s visionary speech at the start of the decade, through the tragedy of Apollo 1 where astronauts were killed in a ground test, to the successful exploratory flights and the triumph of Apollo 11, was a crazy, massively expensive, heroic and incredible journey.

Apollo’s legacy is huge and far-reaching. Many see it as man's greatest achievement and even those who believe it was an expensive folly and arms race indulgence would recognise that it was an incredible feat of ingenuity and courage.

Whatever your view, I believe there are lessons for business owners which can be drawn from this programme.

These are some which spring to mind:

The vision thing

JFK made his famous speech at Rice University in September1962. It is worth watching on Youtube to capture its raw power. ‘We choose to go to the moon’. Kennedy’s statement was simple and specific. To land a man on the moon, by the end of the decade and bring him back to earth safely. The goal was achieved in July 1969. How many businesses have a vision? How specific is it and how is it communicated? Kennedy’s vision inspired, motivated and mobilised a whole country. Powerful stuff

Belief

Landing on the moon seemed like an impossible challenge. A striking thing listening to the reminiscences of those involved is that they ‘believed’ they could make it happen. Some of this was possibly down to the confidence of youth. The average age of mission controllers was 27! ‘They didn’t know what they didn’t know’. There were huge setbacks and barriers along the way but belief that they would eventually be successful helped to carry them through.

Commitment

One of the podcasts I listened to about the Apollo programme described how committed people were to making it a success. Unpaid overtime was the norm. At peak times people worked all hours to get things done and overcome hurdles. Unpaid working on that scale is not realistic or ethical for businesses but commitment in terms of a desire to get things done and work towards a common goal is a priceless commodity

Teamwork

There are numerous examples of incredible teamwork on the Apollo programme. At its peak 400,000 people were employed directly or indirectly on Apollo 11. What a fantastic job of coordination and teamwork to bring all this together to focus on the end goal. The teamwork between Armstrong, Aldrin and Collins in space and the support team in mission control, Houston was tangible and each team praises the other in almost every interview.

Adaptability

The Apollo team were always adaptable. If their plan A didn’t work there was plan B and if there wasn’t a plan B they would make one on the fly. The most striking example was with Apollo 13 where the Command Module failed and the lunar module was adapted to become the astronauts’ place of safety and their refuge to travel back to earth. How many businesses have a plan B or rise to the challenge if plan A doesn’t work?

Excellence

The best thrived in Apollo’s challenging and competitive environment. Nothing but excellence was tolerated in terms of attitude, commitment, quality of work, decision-making and so on. Timescales were so tight to achieve JFK’s goal that the best engineering graduates were recruited without interview. They were thrown into a work role almost immediately and either ‘sank or swam’. I’m not advocating this as a recruitment or a management method for businesses but the focus on excellence is the key thing. There was no room for passengers or people making up the numbers. You either ‘got with the programme’ or fell by the wayside.

Landing on the moon is clearly different from running a small business. The similarity is that it's about a group of people working towards a shared goal.

If the moon mission was possible in 7 years from vision to success what can be achieved in business with vision, belief, commitment, teamwork, adaptability and a focus on excellence?

Shoot for the moon as they say…



Saturday 13 July 2019

Burgers and bookkeeping


Most businesses are in control of how they provide products or services to their customers.


A McDonald’s burger is a McDonald’s burger. It’s done the same way, every time. When you get a flight you turn up at the airport, do check in, go through security and passport control, sit in your selected seat and follow the process. In a restaurant you are greeted, shown to your table, choose your food, it arrives, you eat, you leave.

McDonald’s is the extreme example of a business owning and controlling the process but most businesses do the same, to some degree.

Except, perhaps accountants. All our clients are different it seems. Some provide their records to us in a carrier bag, some in shiny folders in monthly batches, some via email or Dropbox, some summarised on Excel spreadsheets, some on accounting software. Some tidy and reconciled, many not.

So often we work in different ways and using a different process for different clients. That’s a challenge because we need to adapt to each client and have a good working knowledge of multiple accounting systems. ‘That’s what our clients want’, many accountants would say. Maybe, but it’s not terribly efficient and maybe our clients ‘Don’t know what they don’t know’

I’m happy to admit that we have followed what we believed to be the ‘client friendly’ method. However the records are presented, we will find a way of coping with it.

I believe now that things have moved on and we are not acting in the client’s interest if we do not direct the process more than we have in the past. If we can scan receipts, quickly and easily why would we not encourage our clients to do this to save time and simplify the process? If we can use software which downloads the bank feed and automatically matches invoices to payments and receipts, why wouldn’t we take advantage of that? And why would we not use intuitive dashboards rather than paper-based or pdf reports?

Some firms have taken this on board such that they work with a single accounting package with associated apps and they own and control the accounting process with their clients, including doing the bookkeeping in most cases. They get huge efficiencies and economies of scale which they can pass onto clients in terms of improved services and ‘value-adding’ advisory support.

We may not go quite to the extent of prescribing a single accounting system but I do believe standardising how we receive records from our clients and our own internal processes is beneficial for us and our clients.

Accountancy may be different from burgers in a bun but we can learn a lot about consistency, value and service from Ray Kroc and his empire.

www.base52.co.uk