Category Archives: Planning

Fresh Eyes

FreshEyesRichard Nixon was early in his first term, the Detroit Tigers had won the World Series for their first time since 1945, and Fred Borch was CEO of the General Electric Company, when I came out of college and began a 17-year career with GE, a historically strong company, often emulated by other enterprises around the world. The company continued to build on that reputation well into the twenty-first century.

Few manmade constructs last forever. GE’s CEO for the past 16 years has just retired, and the new CEO is wasting no time making changes. Investors have been disappointed with GE earnings and strategies and performance for some time. They now have fresh eyes at the top and new directions and predictions of performance are being established.

My emotional ties to GE (even though I left prior to the turn of the century (how depressing does that sound?) have drawn my attention to their current circumstances. Having spent the final 15 years of my working life as a business coach, and having worked with a number of outstanding entrepreneurs, and having witnessed the making of numerous business decisions of consequence, GE’s current situation reminds me of the power of Fresh Eyes.

If you have operated your own business for a few years, you may or may not realize the upside potential of Fresh Eyes. Ingrained leadership can be very bright, very competent, very hardworking, but locked into a particular view of the business, its employees, its customers, and all its other stakeholders. Fresh Eyes can provide a path to improved performance, particularly when nothing the current leadership is doing appears to be working.

My suggestion is not that you look for a CEO to take your place (unless you are ready to exit your business), not that you get an eye exam and new prescription glasses, but that you seek the advice of trusted outsiders. One of the most effective approaches – in my experience – is to become part of a peer advisory board, a group of non-competing business owners, a collection of openminded leaders, an assemblage of generous entrepreneurs. Once you’ve become a board member, use the board effectively: do your homework; keep your board members advised of your business progress; seek their counsel prior to making key decisions.

You’re still the decider. But your decisions can benefit from the clarity of vision and variety of alternatives identified by Fresh Eyes.

As always, your thoughts are welcome and you may share them below.

Advertisements

Your Black Labrador

oscarexposed

Oscar

Oscar, my black lab, looks a little different from most black labs. His legs are shorter, his fur is shorter, and his head is smaller – not to mention his entire body. But he’s a black lab because, where we have recently moved, everybody has a big dog, and many are black labs. So, he needs to be a black lab.

When we hike a trail with his new best friend, Delmar (who looks a lot closer to a black lab than Oscar), Oscar invests himself in the walk almost completely. He wants to keep up with Delmar. His short legs churn at blazing speed (OK, maybe not blazing, but faster than normal), constantly trying to catch up to Delmar. This attempt at speed is in dramatic contrast with a normal Oscar walk which is more of a saunter, a meandering, a sashaying, guided by his nose, and at a pace resembling that of the occasional slug he confronts on our garden path.

Oscar’s metamorphosis when walking with Delmar is not unlike some small businesses. When they get around larger businesses, they develop more of a spring in their step. Large customers, large suppliers, large potential investors, and large member companies in their peer advisory group can cause the business to step it up a notch.

As a result of hanging out with Delmar, Oscar is healthier and his self esteem is elevated. He’ll probably live longer because of his new friend. He dares to try new things (like actually getting close to the creek that runs along one of his favorite hiking trails).

If there’s a downside, it’s the potential for injury as he tries to keep up with the big dogs. He could experience a heart attack, or he could develop the confidence to leap into a fast moving stream that whisks him away prematurely to doggie heaven.

Business lessons? Acquiring large customers or large suppliers or large investors, or joining a business owner peer advisory group with some larger members can be helpful to your business growth, if you’re willing to run faster to make up for your shorter legs. While it’s OK to tell fellow business owners that you are running a $10 million business, even if the best year you’ve ever had was $7.8 million, do not let that bravado lead you into overburdening the business with debt, or seriously overcommitting to large customers.

One of your challenges as CEO is to balance your view of your business against reality. Dreaming of a bigger business can be the beginning of a true metamorphosis. Driving the business considerably faster than its current capabilities allow can lead to a bad ending. The best CEO is a balanced driver.

Not Quite Broken

Many CEOs have dealt with the prospect of a business collapse

Down But Not Out

I wanted to write on this first day of 2015 about what a great time this is for the CEO to be engaged in planning.  I had planned to offer a few comments on the value of strategic planning, a discipline many of us resist.

But a couple days ago I saw the movie Unbroken.  I had read the book of the same name by Laura Hillenbrand about a year ago.

Let me explain why this changed my blogging plans.  The subject of this movie, Louis Zamperini, served in World War II as a bombardier on a B-24 in what was then the U.S. Army Air Forces.  His plane went down in the Pacific Ocean 850 miles south of Hawaii.  He was one of three crew members (out of eleven) who survived the crash.  They had no fresh water, little food, and a life raft.  He was afloat on the ocean for 47 days before reaching the Marshall Islands, where he and Russell Phillips were captured by the Japanese.  (The third survivor, Francis McNamara, had died at sea on the 33rd day afloat).  Zamperini was held captive by the Japanese, brutally beaten and generally mistreated, until the war ended in August of 1945.  He had been assumed dead and, in 1944, his parents had actually received a formal condolence note from FDR.  (His actual death occurred 70 years later, in 2014.)

Many CEOs I know have faced extremely serious struggles with their businesses as well as in their personal lives.  Some have faced life-threatening illnesses and business-threatening near-collapses.  Many have downsized significantly.  For the most part, these challenges are not quite in the same league as surviving a plane crash, then a month and a half drifting on the open sea, followed by two years of brutal captivity by a wartime enemy.  But the parallel is legitimate.  Running a business can be brutal.

There are many stories of survival that inspire.  I am in awe of the Louie Zamperini story.  And I’m also tremendously inspired by the survival of so many businesses that have been through something akin to a plane crash.

Maybe this is your story that I’m telling.  Or maybe you know somebody who has lived this scenario.  Someone who has been through hell personally or professionally but was not quite broken.  If so, I would urge you to begin 2015 by celebrating their (your own?) survival.

Quickly thereafter, get your strategic plan together.

What if your car came without a dashboard?

Great CEOs have  identified their Key Performance Indicators and track them relentlessly.Are you a better driver because you can easily determine how fast you’re traveling, how much fuel remains, and what time it is? Are you more likely to safely reach your destination because you can readily see the compass direction of travel and because you’re immediately alerted to a loss of oil pressure or tire pressure?  Does the dashboard improve your overall ability to travel efficiently and effectively?  Would you be upset if the auto manufacturers decided to reduce the cost of their vehicles by eliminating all the instrumentation and alarm lights?

Now consider your business dashboard. Have you identified and do you regularly review your key business performance indicators (KPIs)?  Here’s why every CEO should:

  • Identifying your KPIs forces prioritization of data.  The total data available can be overwhelming and you have to keep your eyes on the road.
  • The correct KPIs provide a regular monitor of business historical performance, as well as the outlook for the short-term future. They enable you to stay on track.
  • The habit of routinely reviewing your dashboard (KPIs) creates a powerful sense of having your “arms around your business”, regardless of how well or how poorly the business is currently doing.
  • Your dashboard provides a jump start for when you need to:
    • Create a long range business plan
    • Create a marketing plan
    • Apply for a bank loan
    • Discuss the business with a potential investor
    • Interview a candidate for a key position
  • As a habit, your review of your KPIs is an excellent accountability tool for you personally as well as for your entire business.

You wouldn’t drive your car without a dashboard. Is it any less dangerous to drive your company without one?

A Costly Entrepreneur Mistake

CEOs participate in professional conferences, trade association meetings, and industry gatherings In late August I participated in the annual conference held for the benefit of TAB facilitators worldwide. Since 2002, I’ve missed this conference exactly the same number of times that I’ve forgotten my wedding anniversary.

As in years past, I came away with several pages of prioritized notes listing possible strategies and tactics for improving my business. I accumulated these during the assortment of presentations, breakout sessions, and casual networking that takes place at every conference.

As I reviewed my trove of takeaways on the flight home, it occurred to me that I seldom hear from my business owner friends and clients about their awesome experiences at their industry meetings, trade associations, or professional society meetings. I’m thinking that’s because they don’t attend.

There is a tendency for an entrepreneur to start or acquire a business and then proceed to become so buried in the work that they cannot get away to sharpen their saw at an industry conference. This is a symptom of the “too busy working IN my business to take time to work ON my business” disease.

If you don’t participate in industry-wide sharing of ideas and practices, you’re starving your business. This business starvation condition presents as the sound of anxious breathing or wheezing.  Unfortunately, in most cases, the source of that sound has proven to be the business owner.

Lesson? Stay connected to your broader industry or profession!

By the way, I’ve never forgotten my wedding anniversary.

Is Your Dehumidifier Working?

CEOs must stay current with technology

New Technology

I bought the dehumidifier in 1979, and it lived in three different homes over the years. When I finally decided to retire it, the machine was still working! That is, when I plugged it in, the compressor began running. If the temperature of my basement was below about 75 degrees, the coils would freeze up. The simple on/off switch no longer worked. The control knob for adjusting the humidity setting did not work.  When running, it was very noisy and threw off a lot of heat.  But it still removed moisture from the air when the conditions were right.

The new unit I bought 35 years after the purchase of the old one works better.  It removes more moisture, more quietly, radiating very little heat, under almost all operating conditions. And I can run a hose to the basement sump for continuous draining. With the old unit I had to empty the bucket twice daily because the plastic hose connection was stripped long ago and leaked.

I know CEOs who, like me, stick with the old technology too long. The ancient computer operating system causes all kinds of interrupts and lost productivity. The phone system is cumbersome for customers as well as employees.  The printer/copier/scanner still prints, although the paper feed jams regularly and the scanner feature has never worked right.

Inertia and penny-pinching sometimes combine to make us stupid.  Running a great business requires relatively current technology.  What’s your dehumidifier?

Uniquely Yours

It’s not just lonely, but also unique at the top. You must hold yourself accountable for certain responsibilities that cannot be delegated to others. The challenge is that, if you’re like most CEOs, you also hold yourself accountable for many items that could indeed be delegated.

If you are buried in the weeds of your business 24/7, your business will eventually bury you. Yes, most CEOs must devote significant time to working within their business. But if you haven’t already developed the discipline of spending at least 2% of your time each month (about a half day) stepping back and working on your business, your business is likely to continue to run you rather than the other way around.

What are those unique accountabilities that only you can assume?

  1. Establish your vision of where the company needs to go, and communicate it clearly and frequently.
  2. Find and retain employees who can help get you there.
  3. Lead the creation and routine updating of company goals, strategies, and action plans that will help get you there.
  4. Protect the corporate assets (physical and financial) while making sure you are using them to help get you there.
  5. Assure that the various parts of the company are coordinated and working together to deliver customer value at a profit, and to help get you there.

In a sense, being CEO has a lot to do with attitude and perspective. Consciously accepting this higher level of accountability is a way of your ultimately exiting your business on your terms.

Why not keep score for a few months? Copy the list of accountabilities and keep them close by. Make a daily or weekly note of your estimated time spent in each of the five areas. Hold yourself accountable – or get somebody else to do so – for tracking how much time you actually spend on these important areas. Then make appropriate adjustments.