Walk it off. In little league baseball and many school sports activities of my youth that was the prevailing medical wisdom; “Walk it off.” If you had a bruise or a charlie horse, walk it off. Keep the blood flowing. Probably not horrible advice, but far from the informed approach that today’s sports trainers would bring to bear.
Recovering addicts may know something that you don’t. I recently viewed a TED talk (see link below) by Michael Brody-Waite, a recovering addict, that provides some powerful insight into what works for CEOs too. I assume most of you reading this aren’t addicts. Use your unaddicted head start to your advantage and get started. Here are the three principles.
I can’t tell you how often I hear a CEO say some variation in the following; “We can’t proceed with this initiative because Joe, my head of sales, won’t go for it.” It is often the case that we as leaders live inside the box because we allow those that we have delegated to, to create inertia against change. And before you dismiss the thought that I am talking to you, I probably am.
I spoke recently at the International Baking Industry Exposition in Las Vegas on the subject of succession planning. This is a hot topic in the baking industry as it strives to get the next generation into the business and the current generation out gracefully. As you probably know, this challenge is really universal now as 79% of business owners indicate they are planning on exiting the business in the next 10 years.
With recent discussions regarding the economy and increased volatility in the stock market, it would be understandable if you were to think a foul-smelling economic cycle was on its way. You needn’t feel that way though, yet. It would be smart to look ahead and get your ducks in a row so-to-speak. That unpleasant odor you smell could be a downturn in the offing.
Most owners I meet don’t really understand pricing when we meet. It’s surprising how simple the concept of price management is, and how misunderstood it is. On the surface it is plain to see that more is better. However, many mindsets and emotions come into play just below the surface that make pricing excellence something few firms achieve.
We work with business owners across industries and at the extreme ends of that range of businesses, there aren’t a lot of commonalities. Asset-based businesses vs. service-based businesses, relationship vs. transaction-based businesses. But fundamentals hold true even at the extremes—earnings drive value. More and predictable earnings are better than less. And every owner exits their business eventually.
Hiring good people doesn’t start with an open position that needs to be filled. It starts long before the business needs new talent. By building an organization with the sort of culture that works in your business, you predispose people to want to work there, even though they haven’t even met your business. Lots of money has been spent trying to get at this problem. Like most issues in business, old advice is still sound… and some new voices are worth listening to.
When I began my consulting career most of the consultants around me were COBOL coders doing exciting work like coding a custom accounting system for the Grand Trunk railroad. I had just spent four and a half years learning 68000 assembly language, C and hardware communication protocols. Working on the railroad so-to-speak held no interest.
You’re halfway through the year. Soooo, how’s it goin’?
Some of our clients are hitting something of a headwind now. Is the business struggling a little to put numbers on the scoreboard? Or is it struggling to keep up because sales are hitting a record pace? In either case, you may be tempted to put on the cape and respond in the role of your super hero alter ego and save the day. If you’re tempted to make all of this happen on your own, you should think twice about that. Let’s take a look at how NOT to don the cape.
Early in a business’ development, focus tends to be on the next month or next quarter. Initially, this isn’t such a terrible thing as early on, cash flow is critical.
Cash-related challenges are the leading cause of early business failures. However, as a firm develops and matures, if it continues to focus on the near term, it can prolong the period when sales and cash flow are uneven.
“Either they get the money, or I keep the money.” This is true. If a buyer pays more for a product or service, the seller keeps the extra. If the buyer pays less, they pocket the difference. It’s that simple. Except that a good buyer/seller relationship can often be more valuable than the purchase price suggests. A book could be written on supplier relationships and has… several times. This is NOT that book, but we can unpack this a little.
Do you remember those public service announcements that used to run on late night TV; “It’s 11 O’clock, do you know where your children are?” Let me ask you; “It’s 11 O’clock, do you know where your customers are?” Do you know how they feel about the fundamentals of your relationship; value, price, ease of doing business and overall experience? Would they recommend you? These issues are the most powerful driver of growth. In fact, firms that get this right, grow at 3.8 times the pace of the average successful firm.
Do you remember those public service announcements that used to run on late night TV; “It’s 11 O’clock, do you know where your children are?” Let me ask you; “It’s 11 O’clock, do you know where your customers are?” Do you know how they feel about the fundamentals of your relationship; value, price, ease of doing business and overall experience? Would they recommend you? These issues are the most powerful driver of growth. In fact, firms that get this right, grow at 3.8 times the pace of the average successful firm.
If you are measuring too much it can be harmful to your health… or at least the health of your business. Here we are in January 2019. Quite probably at a moment of inflection in the business environment. Is your system of Key Performance Indicators (KPIs) helping you thrive during this turn, or is it an administrivial ball and chain? During a recent meeting with a client she said “I’m really not into all that book-of-the week crap. We need to focus on our KPIs and deliver on them. That’s all there is to it.” I agree with her. However, there is an important difference between flavor of the week and true organizational learning.
Is your wealth under attack… from you? I recently read an excerpt from The Perfect Square: A History of Rittenhouse Square by Nancy M. Heinzen. Rittenhouse Square was home to high concentration of very wealthy in the mid to late 19th century. It describes a shift in the relationship between the wealthy and their money.
