One Form of Acute Pain
It seemed to come outta nowhere. And when it arrived, POW! It brought with it almost debilitating pain. A reasonable person would quickly conclude that a specialist was needed. And the challenge was that each specialist had a different opinion on how to address the pain.
I’m describing a recent back injury that I suffered, but I could just as easily be describing one of your acute business problems. What do they have in common?
- The problem is virtually unforeseen, appearing suddenly.
- It hits you like a ton of bricks.
- Your initial response is to be frozen in place.
- Because it is unexpected and not previously experienced, you’re pretty sure you need the help of an expert, a specialist.
- There are many and varied experts to consult,
- each with their own approach to eliminating the pain.
What to do?
Whom to trust?
Consider the back injury first. If you have a medical doctor, a general practitioner, whom you trust implicitly, he/she would be a good one to consult. A small investment upfront with a trusted advisor who will guide you to the path that returns you to good health seems like a reasonable decision.
Now consider your acute business problem. Who is your “general practitioner”? Whom do you trust implicitly? Start with that person.
I chose to short circuit the process and went directly to a “specialist”. In so doing, I lengthened my recovery. Although I don’t heal as quickly as I did as a twenty something, I will heal – in spite of the false start. But can you say the same for your business? If the surprise attack is vicious enough, you may not have time for a do-over. Get the trusted advice from your generalist as a first step.
I did not conceive this message with the thought of a shameless plug as the wrap-up. But I really would be doing you a disservice not to offer more specific guidance on finding that trusted advisor. Two obvious choices are: a fellow CEO, and a qualified business generalist.
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?
Posted in Financial, Leadership, Planning, Strategy
Tagged Business Owner, Business Planning, CEO Development, Company Vision, Financial Planning, Goals, Leadership, Strategic Planning
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.
Remnant of 1990s war in Croatia
I recently returned from a journey to Eastern Europe. I briefly visited towns in Hungary, Croatia, Serbia, Bulgaria, and Romania. The tour caused me to reflect more seriously than ever on the freedoms and opportunities we enjoy in the United States.
We took a photograph of a bombed out building in Vukovar, Croatia, located on the Danube River. Someone had placed beautiful blooming flowers in several openings of the building where windows used to be. The symbolism was intense.
My professional life for the past fifteen years has been devoted to working with leaders of privately owned businesses. Most small to midsize businesses cycle – from relatively good times to relatively poor times. Occasionally a business is devastated. Even in “normal” times, my clients face difficult challenges. Some are fighting serious diseases while still running their businesses. Others are unable to pay themselves a salary for months at a time due to negative cash flow. Some are angry with and frustrated by lending institutions who offer little or no support. Still others must struggle through broken family relationships that are exacerbated by the demands of the business.
So it’s not surprising that businesses are sometimes figuratively blown up. Maybe more surprising are those occasions when, out of the ashes, something beautiful emerges. Individual perseverance and guts, and the unbending support of family or friends or customers or suppliers, produce bright color where only gray existed before.
Now, back to Eastern Europe. Having met and heard the stories of a number of people who once lived behind the Iron Curtain, I am struck by the power of having the freedom of choice. I’m more appreciative of having a system of checks and balances in a government that sometimes seems to be gridlocked. I’m grateful to live in a country where any entrepreneur has the freedom to choose his own next step. Doors may not be wide open at every decision point, but at least the doors exist.
Has your business ever seemed like a mere shell of the structure it once was? And you’re still standing? Then my photo from Vukovar is for you!
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?
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?
- Establish your vision of where the company needs to go, and communicate it clearly and frequently.
- Find and retain employees who can help get you there.
- Lead the creation and routine updating of company goals, strategies, and action plans that will help get you there.
- Protect the corporate assets (physical and financial) while making sure you are using them to help get you there.
- 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.
I recently facilitated a meeting of five business owners, all of whom lead a business with other family members involved. They were gathered to share best (and worst) practices based on their own experiences. The discussion focused on bringing the next generation into the business, and preparing them to take the helm. Here are the most significant truths that emerged:
- The next-generation family member should start out “mopping the floors”. They need to earn the respect of other employees.
- Establish the discipline from Day One of differentiating between “talking business” as employer-employee, and “talking personal” as mother-son.
- A young family member in their teens entering the business, even on a part time basis, creates special challenges. Their lack of real-world work experience makes it harder for them to understand the necessary separation between family and business relationships.
- They need exposure, over time, to all areas of the business. Ascertain whether the organization can compensate for their weaknesses and allow them to play to their strengths if and when they assume the leadership position. Be willing to accept the fact that they may not be cut out to eventually run the business.
- You must manage your expectations, which may be distorted because you are personally close to the family member. Allow them to surprise or disappoint you, and make necessary adjustments to your expectations and plans as they do.
- Differentiate between compensation and business ownership. Compensate based on contribution to business results. Allocate ownership based on any family considerations you deem to be fair.
Running a business is challenging. Leading a family business adds another layer of complexity which only family business owners can fully appreciate.