Posted: March 15, 2012 | Categories: Management, Self-Improvement

 There are some indicators that our economy is getting better, and you may be one of those whose business and profits are robust.  If so, here is some wisdom I will pass along to you courtesy of the late Peter Drucker:

“An organization should not grow faster than its ability to manage”

 That is the “what”.  Now we can turn to Ben Franklin to get a better idea of “how”.

Benjamin Franklin built his success on defining and living by clearly defined virtues.  He used these virtues every day to check the rightness of his actions or thoughts.  He originally had 12 virtues.  After a short time, he realized he needed to add one more – humility.  As he put it, “Every time I find myself getting very good at something, I start to feel too proud about it”

In his painfully helpful book, “How the Mighty Fall”, “Good to great” author Jim Collins analyzes five key phases in the decline of success.  Sears, GM, Motorola, and Circuit City are some examples he studied.  Here are the five steps as outlined by Mr. Collins:

1. Hubris born of success

2. Undisciplined pursuit of more

3. Denial of risk and peril

4. Grasping for salvation

5. Capitulation to irrelevance or death

He also emphasized that stage #1, “Hubris of success”, is the trigger that leads to the remaining steps of decline.

Let’s see how Webster’s Dictionary defines “hubris” and “humility”

Humility:  Refrain from boasting. Minimize personal accomplishments in favor or building others.

Hubris:  Wanton insolence or arrogance resulting from excessive pride.

Which word do you like better?  (I thought so)

Many businesses believe that their toughest challenge is generating more revenue.  In my experience, I find that the most stressful situation is when we are making tons of money.  There is a strong tendency to let our pride get out of hand, and when that happens, we can make some stupid decisions.

GM didn’t see foreign cars as a threat.  Sears didn’t take Wal-Mart seriously.  Motorola chose to be more engineering driven that customer driven.  As Mr. Collins puts it, “they lost sight of the underlying factors that created their success in the first place.”

So if you are at the top of your game, and enjoying profits beyond your dreams, take some time to do the following:

1. List the underlying factors that created your success

2. Determine which one needs the most attention

3. List and commit to one or two specific action steps you can do to improve the area of focus.

Have a “healthy discontent” with where you are at!

Posted: March 7, 2012 | Categories: Management, Team Building

Earlier this week, I was talking with a client whose company is substantially ahead their revenue goals for 2012.  That is exciting, especially considering we are not even finished with the first quarter.   You are probably asking how this is possible.  How did they do it?… Was it luck?.. .Did they just have the right product at the right time?…Was it good management and planning?  The answer:  All of the above.

You have probably heard the expression, “Luck is where opportunity meets preparation”.  Looking at what we can control, let’s take one of the most operative pieces of preparation:  CLARITY.

Clarity of goals:  This business owner (Jim) took the time to craft his 2012 business plan in November of 2011.  At the top of his plan in bold letters were his specific revenue goals and profit margin baseline.

Clarity of strategy:  If you were to ask Jim how he planned to achieve the goals, he would enthusiastically detail all the actions and categories of activity that would lead him to his goals.

Clarity of roles:  If you were to ask each of Jim’s team members what their role was, each of them could clearly tell you.

Clarity of responsibility:  Each role contains certain responsibilities in terms of desired results.

Clarity in tracking and accountability:  Everyone on Jim’s team clearly understands what is expected of them.  They all have an action plan with specific steps containing deadlines and benchmarks.  Each member does their best to do what they say they will do when they say they will do it. When they fall short, the group comes together to focus on the problem and agree on a plan of action.

Clarity in goals, strategy, roles, responsibility, and accountability can defeat finger-pointing and excuses and can enable a team to “advance confidently in the direction of their dreams”, as Thoreau once said.

To put these fundamentals immediately into play, check you clarity on the key areas mentioned.  If you find something fuzzy, take the time to make it clear.

Posted: February 6, 2012 | Categories: Management, Team Building

Here is an all-too-familiar scenario:  Something got goofed up.  It is time to huddle and solve the problem.  So we sit down together and the boss says, “What’s the deal?”

The next thing that happens…finger-pointing and blame.  No one wants to take the rap for the costly error.  (If is wasn’t costly, we wouldn’t be talking about it)

After the blame comes the next phase:  “OK, here is what I think we should do. ”  “No, let’s not do that…I think we should do this.”  The discussion intensifies, and the team finally ends up with the action to be taken.  If this is how your team solves problems, you may be missing an ideal opportunity to make your company stronger.  In order to capitalize on problems, we need to level the playing field and get everyone engaged in the process.  Here is a 9-step method that has stood the test of time:
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Posted: November 28, 2011 | Categories: Management, Sales

December is a good time to employ the 5P formula.  “Proper Prior Planning Prevents Poor Performance” Priormeans before, and I’ve got news for you:  This is the last month before the new year.  What we do now can help ensure a strong launch in January.  Let’s plan…step by step.

Before we begin, we need to remind ourselves that December is also an important month for sales activity.  When I was in sales, some of my most high-producing months were in December.  Sure, things can taper off after the 20^th.  That still leaves a lot of selling days!
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Posted: November 15, 2011 | Categories: Management

J.C. Penney once said, “One of the biggest causes of business failure is the inability to delegate”

In the late 90’s, I was hired by a prominent graphic designer to help accelerate the growth of his business.  He had just completed a book cover for a high-profile athlete, and things were booming.  He had reached the point where he was doing too much himself, and he wanted to be a better delegator.  He talked about situations where he had assigned his team to meet with clients.   One frequent comment he heard was, “Jim, whenever you are not in the room, the value of your company is cut in half”.  I assumed he wanted to change this.  I was wrong.
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