Every Organization Is Sinkable

(C) Strings Magazine

"Contrary to popular mythology, Titanic was never described as 'unsinkable' without qualification until after she sank."

—Richard Howells

Did an iceberg in the North Atlantic cause the RMS Titanic, the world's largest vessel, to begin sinking around 11:40 p.m. on April 14, 1912, off Newfoundland? Less than three hours later, the ship plunged 12,500 feet or 2.5 miles at a speed of 35 to 40 knots (40 to 46 mph), leaving an impact on the sea floor that is still visible today.

Of the 2,224 passengers and crew, nearly 1,500 died in that preventable tragedy. 

Damaged from the inside out

Or maybe it was something else, such as a broken organizational culture at Harland & Wolf, the Titanic's Belfast builder, or the White Star Line headquartered in Liverpool, England, which owned and operated the luxurious ocean liner.

"The Titanic was doomed from the start due to a flawed corporate culture," concluded Darry Wright, a senior global executive with EY Canada who studied the accident. 

"It was not the iceberg that led to the downfall of the ship; rather, it was a culture of overconfidence, narrow-mindedness—and a lack of balance between innovation and risk. Leaders who did not acknowledge the intrinsic flaws (rivet failure and open portholes) in the ship's design," Wright added.

How dangerous is it to overestimate our abilities or knowledge when needing more expertise in a particular area? Very. (Dunning-Kruger effect)

The Titanic's crew and modern management have this in common—the practice of ignoring legitimate warnings. 

On April 14, 1912, a British merchant ship, the SS Mesaba, sent a radio warning about an ice field with large icebergs and heavy icepacks. That message never reached the bridge. At 10:55 p.m., the SS California radioed the Titanic, saying it was stopped and "fully surrounded by ice."  The Californian's crew later misinterpreted Titanic's calls for help.

Before leaving Southampton, Captain Edward Smith knew the drift ice field was larger and further south than in previous years. 

At the time of the accident, the Titanic was sailing at 22 knots (25 mph), two knots below its maximum speed.

The Titanic Syndrome lecture links an overreliance on past success to the night's complications. The captain and crew were experienced at sea under normal sailing conditions. But how can a spotter see afar with the binoculars missing in the Crow's Nest? Or what does a captain do after hitting an iceberg with insufficient liferafts onboard?

Organizational icebergs

The International Ice Patrol says an iceberg is a piece of freshwater ice over 15 meters or 16 yards long that has broken off a glacier or ice shelf and is floating freely in the water. Icebergs vary considerably in size and shape. 

According to the Polar Times, the largest iceberg on record was sighted by the USS Glacier on November 12, 1956, west of Scott Island in the South Pacific Ocean. At 335 by 97 kilometers (208 by 60 miles), it was larger than Belgium. A study by The Ohio State University suggests that about one-tenth of the volume of an iceberg is above water and follows Archimedes' Principle of Buoyancy.  

Two of the biggest icebergs threatening businesses and nonprofits are the absence of mutual trust among colleagues and an inability to recognize emerging internal and external realities. Both contribute to strenuous transitions when changes are needed with people, products, or services. 

Broken cultures sink strategies. 

MIT research shows that it takes more than a narrative to repair cultures, as there is often a gap between what is said and what is done. That study says 88% of employees report a lack of organizational preparedness in facing new challenges. 

Repairing the damage includes finding the glue to hold everyone together, clearing out the noise overtaking vital communication, and clarifying what is unique and special about the enterprise. 

Saying it, talking about it, and writing it down doesn't make it so.

Small holes—sizeable destruction

A 1996 exploration of scientists and engineers underwritten by the Discovery Channel found six thin openings across the Titanic's starboard hull, which were likely the cause of its physical demise. The total area of damage is 12-13 square feet or less than the area of two sidewalk squares. 

"It was not the size but the placement of the openings across six watertight holds," says William H. Garzke Jr, a naval architect. "Everything that could go wrong did. Those half-dozen slits let in 39,000 tons of water, sinking the Titanic," the investigators wrote.

Would there have been less damage at slower speeds? The experts say yes. 

Under the right conditions, any ship can sink.

Paying respects

On June 18, 2023, a month before our Transatlantic Crossing on Cunard's Queen Mary 2 from Brooklyn, New York, to Southampton, England, the Titan submersible imploded while on an exploration of the Titanic site. All five on board were killed. Stockton Chase, CEO of OceanGate, Titan's owner, was among those who lost their lives that day. 

Warnings about the Titan's safety were widely shared but not addressed. 

As the QM2 approaches the coast of Newfoundland heading eastbound, the Titanic site is displayed on a screen in the cabin. Captain Andrew Hall announced on this trip that the QM2 would sail north of the Titanic site. The horns will blast to pay respects to those whose lives were lost on that fateful voyage 111 years ago.

At the Sunday worship service sponsored by the QM2, the congregation sings the British hymn, "Eternal Father, Strong to Save." Written in 1860 by William Whiting, the anthem was inspired by the dangers of the sea described in Psalms 107.  

The last word

The BBC reported that one of the Titan submersible crew's final messages was, "All good here."

The surviving second officer on the Titanic, Charles Lightoller, was quoted in the film A Night to Remember as saying, "We were so sure."

This is a tale of two unique vessels, one very large and the other very small, whose fates were determined not from the outside but from the inside out. 

As you go about your work, keep that life-saving lesson in mind.

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©  Bredholt & Co. 

 

When Customers Leave and They Don't Say Why

Getting Images

"The true test of business's customer service fitness is not when things are going right--but rather what it does when things go wrong."

--Steve Ferrante

One of the more overlooked aspects of growing a business is retaining customers, especially in competitive markets like retail, dining, and travel. A good way to achieve that is to pay attention to what Dr. Albert O. Hirschman calls "repairable lapses."

Every company, nonprofit organization, professional services firm, and house of worship sometimes needs to catch up.

Yet, the goal is not perfection but consistency, honesty, and integrity in our dealings on both sides of the counter. That behavioral trio is essential for trustworthy relationships and loyalty. Best efforts are like an insurance policy for when bad days happen--and they do.

Let's say upfront that viability and profitability require new and retained customers. It's not one or the other, but both. However, the September Post is about the work needed to build customer satisfaction by keeping products or services in good order and fixing them when they fall below acceptable performance levels.

That means when something goes wrong and is brought to management's attention, even by associates, action should be taken to get things back on course as soon as possible. Sometimes, it's as simple as apologizing and making matters right--on the spot. Ritz Carlton Hotels gives frontline workers the authority to do just that. Well-managed restaurants do the same with servers. 

Expressing sincere regret with concrete steps is an effective way to disarm unhappy buyers. Immediate responses help restore reputations as positive word spreads among business, social, and family networks.

This principle of repairability is important because it allows corrections within a reasonable period and cost. As with health, the point is not to let small problems become life-threatening through neglect. 

Departure closes the door

Dr. Hirschman, author of Exit, Voice, and Loyalty (Harvard University Press), suggests a reliable way to identify operational decline is through "exit." Customers leaving, especially in measurable numbers, are sending a message. 

Walking out quietly, though, makes it difficult to always know exactly what that message is. Exiting customers also give up an opportunity to make better what they don't like.  

How can those losses be reversed? 

"Management must find ways to correct whatever faults have led to these exits," Dr. Hirschman says. That's why feedback is necessary for organizational health. How are we doing, and where can we improve? 

Even with inflation now at 2.9%, down from 9.1% in 2022, changed shopping habits are in place for many households.

If doable, exit interviews shed light on disengagement, providing insights into what it might take to get someone back in the fold (i.e., faith communities). Resolving problems should be a priority, as finding new clientele is time-consuming and hard. 

Research by Frederick Reichheld, inventor of the net promoter score, shows that increasing customer retention rates by 5% increases profits by 25% to 95%. 

Keeping the right customers is of great worth to enterprises, big and small.

Speaking but not too loud

The complement to exit is "voice," although consumers can speak and still leave. Voice gives rise to advocacy by remaining in a system. The book suggests that what causes us to choose voice over exit is loyalty, which, unfortunately, is a diminishing value. 

Customers or members may express their objections to anyone they believe cares. "Voice is effective up to a point and can be overdone," says Dr. Hirschman. Voices alert management to failings but must give management time to respond to the pressures brought to bear," he adds. How much time it takes for remedial action to take effect depends on the situation's complexity. 

Take the recent Crowdstrike-Microsoft crisis, which caused the largest IT outage in history.  

A Crowdstrike software update failed, causing flight delays, broadcast disruptions, and blue screens on corporate PCs worldwide. Crowdstrike's founder and CEO, George Kurtz, has publicly apologized. "I want to sincerely apologize directly to all of you for today's outage. All of CrowdStrike understands the gravity and impact of the situation." 

He reiterated the company's earlier message that the incident on Friday, July 19, was not the result of a cyberattack.

Not all airlines use Crowdstrike. Of those that do, Delta claims it was more affected than others. From July 19 to 25, it canceled 7,000 flights, affecting a half-million passengers due to the IT outages. 

"I want to apologize to every one of you who have been impacted by these events," Delta's CEO Ed Bastian told customers. "Delta is in the business of connecting the world, and we understand how difficult it can be when your travels are disrupted."

Loyalty is a two-way street

Delta's passengers voiced their anger through social media and the press, as flyers were stranded in airports and sleeping on floors. Most affected travelers, including Sky Miles members, will stick around as they have little choice. Delta's slower recovery from the outage follows an earlier J.D. Power survey showing the airline as the best in first-class and premium coach satisfaction. *   

The U.S. Transportation Department, which has received more than 5,000 complaints, has opened an investigation into Delta's response. Delta has retained famed litigator David Boies and is suing Crowdstrike and Microsoft to recover a projected half-billion cost; both companies denied fault. 

Some passengers use their collective "voice" through a class action lawsuit to exert legal and political pressure on Delta's top management to reach financial settlements. 

How does a business repair that kind of damage? As quickly and transparently as possible. 

A Delta spokesman told The Wall Street Journal that the company has processed thousands of refunds and reimbursement requests. "The airline is working tirelessly to make this right for customers." 

After suffering severe turbulence, how will Delta land safely? 

One way is remembering what Scottish novelist J. M. Barrie said: "Life is a long lesson in humility."

* The author is a Delta SkyMiles member.  

Strategist.com

© Bredholt & Co.

See You in September

 "The summer night is like a perfection of thought."

--Wallace Stevens

Vicksburgmi.org

See You in September

"The summer night is like a perfection of thought."

--Wallace Stevens

Vicksburgmi.org

See You in September

"The summer night is like a perfection of thought."

--Wallace Stevens

Vicksburgmi.org

There's No Such Thing as a Cheap Piano

"Buying cheap to save money is like stopping the clock to save time. Neither works."

--Napoleon Hill

(C) Cable-Nelson

Sometime in the late 1950s, my Mother purchased a Cable-Nelson spinet piano and enrolled me at the Edward Cullinan Studios in Benton Harbor, Michigan. 

While less well-known than Yamaha, Bösendorfer, and Steinway & Sons, Cable-Nelson was a successful manufacturer who built well-made instruments. They survived the Great Depression and manufactured various brand names until the 1980s.  

Although I was unaware then, Lydia Bredholt, a pianist, taught me the importance of quality products (Cable-Nelson) and people (Edward Cullinan). Over time, I also learned that high values and culture are obtainable, no matter one's status in life. 

In 2004, that same Cable-Nelson piano was loaded on a rented trailer in Florida and carried away to our daughter Jordan's home in Virginia. Later, our grandchildren will play, too--nearly 60 years after its original purchase.    

More than weekly piano lessons and practicing (who likes to practice?), our Mother knew that attempting to play Swans on the Lake or The Man in the Moon from John Thompson's Modern Course for the Piano (First Grade) opened the door to a world of creative expression that would provide a lifetime of enjoyment. 

That includes composing and orchestrating songs for our grandsons and granddaughters with the help of arranger Jerry Nelson.

"Without music, life would be a mistake," said Friedrich Nietzsche.

Cheap can be expensive

Recently, it was decided to replace the Cable-Nelson piano. A decade-old digital baby grand was found online, and it happened to be owned by someone nearby. Looking for a good buy, the price was agreed upon, and the piano was delivered to our home. 

However, it only took a short time for a $400 instrument to become an $800 transaction. The keyboard needed work, and the electronics were updated. The piano's computer system will require additional upgrades, the cost of which remains to be determined. 

Nevertheless, our 10-year-old grandson, Andrew, visited and admirably performed the theme from Star Wars. Additionally, the ebony piano is an attractive piece of furniture in our living room. 

So all is not lost. 

Piano lessons

Buying a piano is like buying a used car--it's a challenge for anyone.

LivingPiano.com says, "You can buy a piano cheap or get one free, but the amount of work you have to put in them varies greatly."

"Choosing the cheapest option may mean sacrificing quality, which can lead to additional costs in the long run," writes Matt Heller, who advises on these purchases.

The conclusion is that we will pay now or later (as I am doing), but we will pay.

Everyone likes a bargain--especially the well-to-do. But sometimes, within reason, paying the price to get what we want is necessary. Buying fewer but nicer things makes that possible.

May is a month of commencement and a time to reflect on the generosity of those who cared for us most. While they pass, their legacy lives.

As the Swedish group ABBA sang, "I say thank you for the music, for giving it to me."

Strategist.com

©  Bredholt & Co.

The Rule of Holes

"Everyone makes mistakes. Everyone fails at something."

--David Gemmell

(C) Deposit Photos

The "Law of Holes" adage first appeared in the Washington Post in 1911. 

The first rule's original iteration--"Nor would a wise man, seeing that he was in a hole, go to work and blindly dig it deeper ..."

The contemporary version reads like this: When you find yourself in a hole, stop digging.

It's a philosophy of learning to let go. 

Here are seven more rules to keep in mind:

2. Holes happen. They can appear out of nowhere, full-blown. One minute, they're not there; the next thing you know, you're in one. A wise person always carries a ladder.

3. Climb out of the hole as soon as possible. 

4. After you have climbed out of the hole, don't fall back in or dig yourself a new hole.

5. Holes come in a wide variety of types and sizes, all of which have the potential to cause you trouble. Sinkholes, the Black Hole of Calcutta, and the hole in the ozone come to mind. A hole in the water into which you pour money is called a boat. There can be holes in your story, your pocket, your glass, your résumé, your memory, your shoes, and your soul. 

6. Sometimes, holes can be your friend, for instance, in a storm. But it's important to know what kind of storm is coming. Holes are suitable in a tornado; they are not so good in a flood.

7. Bottomless holes are called pits, as in throwing good money into one. But "bottomless-ness" is a physical impossibility. The money just takes longer to get there before it finally disappears.

8. Regardless of all the Horatio Alger motivation, no matter how hard you try, you can never build a hole starting at the bottom and working up.

Source: H. Martin Moore, Jordan Rothstein, and the Internet. 

Strategist.com

© Bredholt & Co.