Saturday, November 27, 2010

Why Coaching Clients Give Up: And How Effective Goal Setting Can Make a Positive Difference

by Marshall Goldsmith and Kelly Goldsmith

A review of research on goal-setting has helped us better understand two key areas of concern for leadership coaches: 1) Why people give up on goals and 2) How effective goal-setting can help ensure long-term goal achievement. An understanding of the dynamics of goal-setting and goal achievement may help coaches understand why their clients sometimes lose motivation and how they, as advisors in goal-setting, can increase the odds that their clients will "stick with the plan" and reach desired targets.

Why do people so frequently give up in their quest for personal improvement? Most of us understand that "New Year's resolutions" seldom last through January - much less for the entire year! What goes wrong?

Six of the most important reasons that people give up on goals are listed below. Following each reason will be a discussion of implications for leadership coaches and ideas for "preventative medicine" in planning - so that clients will ultimately be more likely to achieve their change objectives.


I wasn't sure that this coaching idea would work in the first place. I tried it out - it didn't do that much good. As I guessed, this was kind of a waste of time!

One of the biggest mistakes in all of leadership development is the roll-out of programs and initiatives with the promise that "this will make you better". A classic example is the performance appraisal process. Many companies change their performance appraisal forms on a regular basis. How much good does this usually do? None! These appraisal form changes just confuse leaders and are seen as annual exercises in futility. What companies don't want to face is the real problem - it is seldom the form - the real problem is the managers who lack either the courage or the discipline to make the appraisal process work. The problem with the "this will make you better" approach is that the emphasis is on the "this" and not the "you". Coaching clients need to understand that ultimately only you can make you better.

Successful people tend to have a high need for self-determination. In other words, the more that leaders commit to coaching and behavior change because they believe in the process, the more the process is likely to work. The more they feel that the process is being imposed upon them or that they are just casually "trying it out" - the less likely the coaching process is to work.

Coaches and companies that have the greatest success in helping leaders achieve long-term change have learned a great lesson - don't work with leaders who don't "buy in" to the process. As coaches, we need to have the courage to test our client's commitment to change. If clients are just "playing a game" with no clear commitment, we need to be willing to stop the process - for the good of the company and for the good of the coaching profession.

In goal-setting coaches need to ensure that the change objectives come from "inside" the person being coached and are not just externally imposed with no clear internal commitment. Coaches need to let clients know that they are ultimately responsible for their own lives. As coaches we need to make it clear that we are there to help our clients do the work - not to do the work for our clients.


I had no idea that this process would take so long. I am not sure that it is worth it!

Goal-setters have a natural tendency to underestimate the time needed to reach targets. Everything seems to take longer than we think that it should! When the time elapsed in working toward our goal starts exceeding expectations, we are tempted to just give up on the goal. Busy, impatient leaders can be even more time-sensitive than the general population.

While the "optimism bias" about time is true of goal-setters in general, it may be even more of a factor for leaders who are trying to change the perceptions of co-workers. In general, our behavior changes long before the perception of this change by our co-workers . We all tend to see people in a manner that is consistent with our previous stereotype - and we "look" for behavior that proves our stereotype is correct. Co-workers are no different than anyone else. Recent research shows that the long-term follow-up and involvement of co-workers tends to be highly correlated with changed perceptions of leaders . This is not something that is accomplished overnight. Harried executives often want to "check the box" and assume that once they understand what to do - and communicate this understanding to others - their problems are solved. If only the real world were that simple.

In setting goals with leaders it is important to be realistic about the time needed for them to produce a positive, long-term change in behavior. Habits that have taken 48 years to develop will not go away in a week. Let them know that others' perceptions may seem "unfair" and that as they change behavior - others may not fully recognize this change for months. In this way when they face time challenges they will not feel like there is something "wrong" with them or with their co-workers. They will realize that this is a normal part of the change process. Ultimately, as the research shows, perceptions will begin to change and co-workers will begin to appreciate changed leadership behavior.



The optimism bias of goal-setters applies to difficulty as well as time. Not only does everything take longer than we think it will - it requires more hard work! Leaders often confuse two terms that appear to be synonymous - but are actually quite different - simple and easy. We want to believe that once we understand a simple concept, it will be easy to execute a plan and achieve results. If this were true everyone who understood that they should eat a healthy diet and exercise regularly would be in shape. Diet books are almost always at the top of the best seller lists. Our challenge for getting in shape - as well as for changing leadership behavior - is not understanding, it is doing!

Long-term change in leadership effectiveness requires real effort. For example, it can be challenging for busy, opinionated leaders to have the discipline to stop, breathe and listen patiently while others say things that they may not want to hear. While the leader may understand the need to change - and even have a great desire to change - it is still hard to have the discipline to change.

In setting goals it is important that leaders realize that real change will take real work. Making client's feel good in the short-term with statements like "this will be easy" and "this will be no problem for you" can backfire in the long-term when they realize that change is not easy and that they will invariably face some problems in their journey toward improvement. Letting leaders clearly understand the price for success in the beginning of the change process will help prevent disappointment that can occur when challenges arise later in the change process.


I would really like to work toward my goal, but my company is facing a unique challenge right now. It might be better if I just stopped and did this at a time when things weren't so crazy.

Goal setters have a tendency to underestimate the distractions and competing goals that will invariably appear throughout the year. One good counsel that a coach can give an executive is, "I am not sure what crisis will appear - but I am almost positive that some crisis will appear!"

In some cases, the distraction or crisis may result from a problem - in other cases it may result from an opportunity. For example, mad cow disease was an unexpected problem that produced a crisis for executives in the meat packing industry. It is hard to focus on long-term leadership development when the company is going through an immediate financial crisis! On the positive side, "Cabbage Patch Kids" became a craze and the company started selling far more dolls than anyone imagined. It is hard to focus on long-term leadership development when your toy company has a "once-in-lifetime" short-term profit opportunity!

In planning for the future, coaches need to help executives assume that unexpected distractions and competing goals will occur. Build in time in change projections to "expect the unexpected". By planning for distractions in advance, leaders can set realistic expectations for change and be less likely to give up on the change process - when either special problems or special opportunities emerge.


Why am I working so hard at becoming a more effective leader? After all of my effort - we still didn't make any more money this year!

Goal setters tend to become disappointed when the achievement of one goal doesn't immediately translate into the achievement of other goals. For example, a dieter who loses weight may give up on his weight loss effort when women don't immediately begin to love him.

Hewitt Associates has done some fascinating research that documents the positive, long-term relationship between investment in leadership development and long-term financial success . Their research shows that companies who invest in developing leaders tend to have greater long-term profits. There is no research that shows investment in developing leaders produces greater short-term profits.

Increasing leadership effectiveness is only one factor in an organization's overall success. For example, a company may have the wrong strategy or be selling the wrong product. If someone is going down the wrong road - increasing people management skills will only help them get there faster!

Leaders need to personally "buy in" to the value of a long-term investment in their own development. If coaching clients think that improving leadership skills will quickly lead to short-term profits, promotions or recognition - they may be disappointed and may give up when these benefits don't immediately happen. If coaching clients see the change process as a long-term investment in own development - and something that will help them become more effective over the course of their careers - they will be much more likely to "pay the price" needed to achieve success.



Once a goal-setter has put in all of the effort needed to achieve a goal, it can be tough to face the reality of maintaining changed behavior. One of the first reactions of many dieters upon reaching their weight goal is to think, "This is great! Now I can start eating again. Let's celebrate with some pizza and beer!" Of course this mind-set leads to future weight gain and the "yo-yo" effect that is unfortunately so common in dieters.

Coaching clients need to clearly understand - leadership is a process - not a state. Leaders can never "get there". Leaders are always "getting there". The only way that exercise helps people stay in shape is when they face the reality that "I have to work on this stuff for the rest of my life!" Leaders need to accept that leadership development is an ongoing process that never stops. Leadership involves relationships - relationships change and people change - maintaining any positive relationship requires ongoing effort over a long period of time. It doesn't occur because someone "got better" and stayed in this state of "betterness" forever.


Coaches can either help leaders set goals that increase their probability of long-term change, or help leaders set goals that may feel good in the short-term - but lead to disillusionment and "giving up" in the long-term.

The typical advertisement or "infomercial" - designed to help people "get in shape" - provides a great example of what not to do in goal-setting. The message is almost always the same, "For an 'incredibly small' amount of money - you can buy a 'revolutionary' product - that is 'unbelievably easy' and 'fun to use'. This product will produce 'amazing results' 'in almost no time' and you will 'have the body that you always wanted'." Most infomercials imply that you will not have to continue exercising and diet for years - that you will continue to look young - and that you will have frequent, wonderful sex for the rest of your life.

In reality there is no "easy answer" - real change requires real effort. The "quick fix" is seldom a "meaningful fix". Distractions and competing responses are going to happen - and the higher level the executive - the more likely that they will happen. Improving leadership skills - like getting in shape - won't solve all of life's problems. And finally great leadership is something that leaders need to commit to for the rest of their careers - at least if they really want to be great!

All of these messages may sound "tough", but at least they are real. Successful people are not afraid of challenging goals. In fact - clear, specific goals that produce a lot of challenge - tend to produce the best results!

Coaches that have the courage to tell the truth "up-front" and challenge leaders in goal-setting can go beyond being "highly paid friends". Honest, challenging coaches can help leaders make a real difference - both in their organizations and in the lives of the people they lead.

 





Marshall Goldsmith has recently been named by the American Management Association as one of the 50 great thinkers and leaders who have impacted the field of management over the past 80 years. Dr. Goldsmith has a Ph.D. from UCLA. He has been asked to teach in the executive education programs at Dartmouth, Michigan, MIT, Wharton, Oxford and Cambridge Universities. Marshall is the co-author or editor of 19 books including: The Leader of the Future (a Business Week best seller), Global Leadership: The Next Generation and The Art and Practice of Leadership Coaching.

Kelly Goldsmith obtained her Ph.D. in Marketing from Yale University (2009). She begins her career as a marketing professor at the Kellogg School of Business at Northwestern. Her research focuses on how consumers' goals affect their choices and behaviors. Specifically, her dissertation research focuses on how consumers make decisions under goal conflict.

Dr. Marshall Goldsmith's 29 books include: Mojo: How to Get It, How to Keep It, and How to Get It Back When You Lose It! - a New York Times (advice), Wall Street Journal (business), USA Today (money) and Publisher's Weekly (non-fiction) best seller, What Got You Here Won't Get You There - a New York Times best-seller, Wall Street Journal #1 business book and Harold Longman Award winner for Business Book of the Year.   Succession: Are You Ready? is the newest edition to the Harvard Business 'Memo to the CEO' series.   His personal website, www.MarshallGoldsmithLibrary.com, contains hundreds of his articles and videos.

 
In Summary
I think that I did actually get better when I had a coach, but I have let it slide since then. What am I supposed to do - work on this stuff the rest of my life?
Maintenance
Rewards
Distractions
This is a lot harder than I thought it would be. It sounded so simple when we were starting out!
Difficulty
Time
Ownership

The Give and Take of Rejection

Why is it that one tiny word, “No”, can evoke so much fear into the hearts and minds of so many? Part of everyday life as a small business owner requires you to handle rejection day in and day out. How well do you cope? What can you do to more effectively handle rejection?

First up, let’s explore what it is that is being rejected.

Personality - Rejection, or criticism, of you is aimed at your personality or ego. There is no escaping it and can leave you deflated at best or demoralised at worst. Character assassinations of this type are not constructive for the soul.
Behaviour - Your behaviour is one step removed from your ego self. It reflects a choice that you made in the circumstances at a point in time. Hey, we all make mistakes (or bad choices), so you have the capacity to learn from them and make alternate choices. In coaching I ask clients two things:

1. Make conscious choices, and
2. Accept the consequence of those choices.

As a rule of thumb criticise the behaviour not the person.

Relationship Selling
There are two approaches to selling – relationship selling and transactional selling. If you adopt the former then rejection may only be a temporary setback. The relationship remains intact and you have the opportunity to re-group and re-engage.

Transactional Selling
If your approach is transactional then rejection may signal ‘game over’. Unfortunately this is the approach used in many sales transactions and certainly in cold calling approaches.

Your objective should be to reframe the “No” into “No, not at this time”. This gives you a re-entry point and time to assess where your strategy failed. Always work with the mindset that “failure is feedback” and ask your prospect “What could have I done differently to win your business?” or “What would it take to win the deal?”

This is helpful because your prospect is now giving you the reason why. It may highlight the very objection where you lost out and present an opportunity to close the objection.

Emotion
Make no mistake rejection is as difficult for the person saying “No” as it is for you to hear it. Why? Because many mistake what they are rejecting and get caught up in their own discomfort in conveying it. Rejection evokes emotion – yours and theirs!

Coming back to relationship selling, if you have nurtured the relationship and given generously of your time, knowledge, ideas, and attention then your prospect will feel a sense of indebtedness to you. Note, indebtedness is a feeling, not a logical thought.

Most decisions are made emotionally and justified rationally.

The universal Law of Reciprocity applies here. When you do things for someone they feel a growing sense of indebtedness or loyalty to do something in return, hopefully the transaction or even a referral.

Logic
Sometimes your proposal will be rejected for logical reasons, eg better offer, cheaper price, more window space, better location, more passers-by and so on.

Once again learn from your mistakes, refine your skills or change your behaviour and re-engage.

Words & Action
If you don’t walk your talk then you may expect rejection. Of all communications only 7% relates to the words being said. The majority, 93% relates to your body language and tone of voice. Walk your talk or risk losing the business.

What can you do to better handle rejection in its many forms? Try these:

1. Detach from your emotions. Remember that most rejection is not personal. Take the opportunity to ask for feedback and learn your lessons.

Tip: Don’t give feedback on feedback.

2. Shift to relationship selling mode. Even if the relationship is a brief one show that you care. That’s what service delivery is all about.

3. Respect your customer’s decision. Even it defies logic remember that most decisions are illogical anyway. Having said that work it to your advantage. Practice reading emotions and body language. There are two rules of selling:

No.1 The customer is always right, and
No.2 Re-read rule No.1

4. Focus on being of service. This is where you deliver the added value, which justifies your price premium. Too many salespeople find themselves competing on price. Find and deliver the value.

5. Treat doing business and the human interaction that comes with it as a game. Have some fun with it. Emotions (the trigger for most decisions) are a form of energy and the easiest energy to share is humour and fun.

So, there you have it. Who would have thought that being rejected could end up so much fun? Until next time.

- Ends -

Words 774

Sunday, November 21, 2010

Authentic Leader

I came across a wonderful Warren Bennis quote the other day, “Too many CEO’s are bosses, and not leaders.” Being the contemplative type I pondered this for oh, a good five minutes. It usually only takes me this long to have another random thought enter my mind. I thought he was onto something. If you believe the facts and figures, the tenure of an average CEO is less than three years – shorter if you’re self-employed. Go figure!
So how does a CEO truly charter the long term strategic vision of the enterprise when in all probability he/she isn’t going to be there for the long haul? Well, of course any ambitious CEO type wouldn’t be entering such an engagement planning their exit before their arrival but truth be told they should. It is the Board that are custodians of the long term strategic vision and the role of the CEO is to formulate and deliver on the strategic plan. This is the principle objective of the CEO.
When you’re running a small to medium enterprise you may not have a Board and the demarcation lines may be blurred. It is essential to distinguish the roles of Director, CEO and Owner/Shareholder. It’s easiest to think of the reporting lines like a game of hammer, rock, scissors. Rock always wins. Remember that episode of Seinfeld? Anyway the Shareholders appoint the Director(s), the Directors/Board appoint the CEO and the CEO, as chief employee is responsible for recruiting his/her staff.
Even if you run a small enterprise separate the functions, prepare a brief Job Description for each and develop some Key Performance Indicators (KPI’s). They don’t have to be complex but it’s really helpful in managing performance. Replicate this process for all employee roles even if you perform multiple roles like Head of Sales, Marketing, Strategy, etc.
And as Stephen Covey would say, “Begin with the end in mind.” Start your tenure as CEO with a game plan for how you propose to exit. It is also prudent risk management and the bigger your business, the more incumbent it is to have such strategies in place. Entrepreneurs (business owners) should also have an exit strategy for how they propose to exit their business. Even if your business model is built around self-employment, if you think about your business from this mindset you will be more inclined to build robust business systems which create leverage and value.
- Ends -

Dennis Roberts is a leading strategist, executive coach and business mentor. He helps aspiring business leaders transform the potential you have today into the performance you deliver tomorrow. To learn how visit www.DennisRoberts.com.au

Friday, November 19, 2010

Peak Performance: How to get the best out of your people

The traditional approach is to prepare functional specifications of the job role and then fill it. And for larger institutions this organisational strategy has been tried and tested for many years. Yet I wonder about this for two reasons:
• Is this big business approach suitable for the small to medium (SME) business environment, and
• Amidst rapid technological change, and the changing demands/ needs of the Gen X/Y workers do we need another approach, if so, what is it?
Much of the old school organisational theory was formed against a backdrop of stable employment. By that I mean you find a good job and stay in it. Today, a job for life is a redundant concept. Even a life sentence isn’t a life sentence. The challenges of attracting and retaining staff are in providing them interesting and varied work assignments that are engaging, stimulating and provide opportunities for personal and professional growth.
Succession planning is a mandatory requirement, people will move on. The dance is how you provide flexibility and stimulation in the design of a job role and yet balance that with being able to replace the person and the role.
SME employment requires flexibility. The cookie cutter approach to filling job roles doesn’t cut it. Marcus Buckingham, expert in the field of strength based leadership suggests that less than 20% of employees are using their strengths most of the time. If we accept that there is an opportunity to explore here the obvious question is how do we engage employees in work that they are talented and interested in more often?
It is well documented that Australia places an onerous burden on SME’s with overly complex statutory and regulatory requirements. Reforms are underway. Any regulatory, compliance or administrative function will come under immediate review. They are necessary functions but not highly value adding. We shall see more and more of these activities streamlined through legislative changes, automation and outsourcing.
Coach tips:
As an employer here is what you can do:
• Conduct a skills audit. Find out where your employees talents and skills lay. Assess how much time and energy they devote to these activities.
• Measure input and output. You are running a business so having your employees do what they love isn’t enough. They must still be efficient and effective. And deliver results.
• Identify and remove roadblocks. Everyone has a busy schedule. The very first order of business is to identify what busy activities can be stopped. STOP before you START. Create a vacuum before you fill it.

- Ends -

Dennis Roberts is a leading strategist, executive coach and business mentor. He helps aspiring business leaders transform the potential you have today into the performance you deliver tomorrow. To learn how visit www.DennisRoberts.com.au

Wednesday, November 17, 2010

20/20 Vision

One of the most important aspects of business leadership is the creation of a strategic vision for the business. Rapid technological change, increasing complexity of the business landscape, global economic factors outside your control all contribute to create a largely unknown future world. So in that context how do you create the vision for your business?
Well, here’s the thing. Your vision is a creative activity and works best when you disrupt your current reality to imagine how you want your business to be. It flourishes on uncertainty, lateral thinking.
The most common mistake business owners make is to extrapolate the future using an incremental approach, eg This year we made $1m so next year we project $1m plus 10% and in year 2 $11m plus another 10%. A truly inspiring vision will set the broad strategic direction and purposely leave some elements of the HOW question unanswered. The WHAT and WHY questions form the agenda. The HOW questions fill in the detail.
Scenario planning was and is still quite popular. Around the Board table risk mitigation strategies often include scenarios and contingencies.
Test your assumptions and re-examine your beliefs. I recall a colleague who ran a mortgage broking business some ten years ago. The CBA was his biggest competitor. Overnight the CBA decided to outsource their mortgage origination business and he went from competitor to channel partner instantly.
Assume nothing, question everything.
Here’s a couple of things you can do to create your strategic vision:
Disrupt your current reality - choose a time horizon of 3 years. It is sufficiently long enough that you will have to imagine what business will be like. And that’s what you want. You want a quantum leap into the imagined future not an extrapolation from the past.
Engage your stakeholders – if you have a small business then clearly you will want a large say in what goes on. It is OK for you not to have all the answers. Create an environment where your staff can contribute to the co-creation of the vision.
Listen more than you speak – to embrace diversity means listening to other people’s perspectives of the world. Everyone is wired differently and has different values. The art of a leader is to unlock the potential in your people and listening to them is the most fundamental way to do so.

- Ends -

Dennis Roberts is a leading strategist, executive coach and business mentor. He helps aspiring business leaders transform the potential you have today into the performance you deliver tomorrow. To learn how visit www.DennisRoberts.com.au

Monday, November 15, 2010

Start Counting

The one thing that will propel your business forward immediately is benchmarking your performance. You don’t need elaborate balanced scorecards. You don’t even need industry benchmarks or external measures of success. Just start counting stuff. It is much better if you measure what matters but the very act of counting stuff will raise your conscious awareness of potential blind spots. It will give focus and energy, both conscious and unconscious, to the issues at hand.

A funny thing happens when you focus on a problem – you’ll do one of two things. Emotionally you may trigger your body’s response, and/or you will open the neural pathways for a creative solution to the problem. Either way you will create conscious awareness and that puts you firmly in the drivers seat.

Now that you are in the drivers seat you’ll quickly learn whether you drive looking through your front windscreen looking forward into the future or whether, like most people, you drive into the future by projecting the past from your rear view mirror.

Again, either way, if you are consciously aware of what is happening you can choose to change.

As a business owner what should you measure? I suggest you start with three things - money, time and marketing, or more specifically, lead generation. Remember the idea here is to create an awareness of where your money, time and marketing effort has gone IN THE PAST.

Here are three practical steps you can apply with immediate results:

• Counting the cash – examine where your cash comes from and where it goes to, and when. Cycles are all important. Does your cash come from retainers? Marketing campaigns? How long do your clients take to pay? When do you make your payments? What are the discretionary items vs overhead items? Apply the 80/20 rule – don’t get bogged down in detailed analysis, if you haven’t done this before a quick and dirty back of the envelope analysis will suffice. This is all about starting not finishing.
• Counting time – do you pay your staff for their time? What do you get for it? Timesheets may measure activity but are your staff productive or just busy? Are they effective and efficient? Where is the deadtime? The biggest productivity improvement will come from two things – matching staff with what they are good at, and by stopping time wasting activities.
• Counting lead generation – I’ll be blunt here, the number one objective of marketing is to generate qualified leads. If your marketing doesn’t directly or indirectly generate leads then ask yourself why? When measuring your marketing spend include both money and your time.

- Ends -


Dennis Roberts is a leading strategist, executive coach and business mentor. He helps aspiring business leaders transform the potential you have today into the performance you deliver tomorrow. To learn how visit www.DennisRoberts.com.au

Sunday, November 14, 2010

Permission to Fail

In a highly competitive environment success is paramount. Right from our early education we are indoctrinated to pass exams or suffer the indignity of failure. Promotions are awarded on merit. It’s all very quantifiable, vey clinical. We are educated by rote learning. We cram for exams, forget life skills, and forget what we crammed some weeks later too.

Even in sporting contests a close eye is kept on the scoreboard. The popular parlance in sporting culture is to maintain “scoreboard pressure”. It’s all very linear, very formulaic. Yet we live in an increasingly complex and volatile business environment. Long range plans are largely guesswork beyond two years. Cycles are shorter and the demand for real time management information is urgent.

What we need to cultivate is more risk tolerance and with that comes greater latitude towards risk taking, mistake making and failure. Give yourself and your team permission to fail. For much of our bringing we are conditioned to believe that failure is not an option. The days of command and control style authority are over. This is a new age and new measures are required.

Leadership is an activity rather than a character trait. It is not the sole preserve of people in positions of power and authority, au contraire, leadership is there for the taking. It is not necessarily about leading a team of people. You can lead ideas, initiatives, actions, views, opinions and none require followers.

An uncertain environment requires a more flexible, innovative and lateral thinking approach. It’s green fields territory and there are often no precedents which if you embark on the challenge with an inquisitive mindset it can be quite liberating. Every moment is an opportunity to reshape the future.

How might you reinvent yourself, your team, and your business to grant permission to fail as part of an innovative culture?

• Shorten the cycle time - if you actively encourage a risk taking culture then don’t go about it with an open cheque book, put upper/lower control limits around it. The quicker your feedback loop measures success or failure, the quicker you assess what’s working or not working and take corrective action.
• Share the lessons - by this I mean solicit feedback or self-assessment from the incumbent before you draw conclusions from on high. Leadership, and leadership lessons, come from all quarters so ensure you give yourself every opportunity to solicit feedback from diverse sources.
• Balance the judgement – we live in a harshly critical environment so cut your people, including yourself, some slack. Find an equal number of positives for all the negatives. People give their best, and they respond in spades when shown some encouragement.

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Dennis Roberts is a leading strategist, executive coach and business mentor. He helps aspiring business leaders transform the potential you have today into the performance you deliver tomorrow. To learn how visit www.DennisRoberts.com.au