Tag Archives: Company Vision

Unwinding and Reloading

CEO Relaxation

Unwinding

Another Christmas, a New Year looming, much year-end wrap-up to be done. And it’s the best time to take stock.

But first, make sure you have allowed yourself to unwind. Everybody unwinds differently, and many CEOs don’t unwind the way normal people do. You know you, so allow yourself to unwind in your most effective way sometime before hitting full throttle again in January.

Now, about taking stock…

Separately from the unwinding, allow yourself a couple hours to review your business year. Although you may want to outline or create a detailed plan for the first quarter or even the entire year, delay that until you have answered the following questions to your own satisfaction:

What were our most significant accomplishments this year?
Did we make money? If yes, was it a fair return on our investment?
Are we generally headed in the right direction, toward my vision for the business?
Am I becoming more skillful? In what ways?
Am I having any fun?

Unwind, reload, launch into 2018.

Have a joyous holiday. May you be well and prosperous in the New Year.

Advertisements

Rebuilding Year(s)

The business owner CEO does not have the option of resigning.I’m a Philadelphia Phillies fan, which means I’m following the team with the worst record in Major League baseball right now (July, 2015). It’s a “rebuilding year” for the Phillies, a pretty rough period.

In baseball, a rebuilding year generally causes more than a poor win-loss record. Management changes are inevitable. Fewer fans attend the games. High-priced players are traded for younger, cheaper, potential-laden minor leaguers. In the case of the Phillies, all of this is happening, and more. The manager they brought on to see the team through this difficult transition grew weary of losing, and resigned. (That’s right. He wasn’t fired, he resigned.)

For the past six years, I’ve been coaching a CEO (we’ll call him Tom) who decided to take on a “rebuilding year”. Sales were flat, profits were meager and cyclical, and the competition was intensifying. Tom’s tendency was to try to do everything himself, and he longed to discover effective marketing and sales processes, areas that he considered to be personal weaknesses. His relationship with his business was unhealthy – his description: “I feel like a slave”.

Tom’s rebuilding year actually took about four. It included the following:

  1. Developed a new product that addressed a shift in customer preferences – earlier than was recognized by his competition.
  2. Pushed his VP Marketing & Sales hard to identify and grow new opportunities. When he didn’t, he was replaced.
  3. Took a personal interest in an area of marketing that was integral to their future success, and brought others in to do the work after he understood what was required.
  4. Through some trial-and-error, figured out how to recruit, hire, and mostly keep talented people needed to stimulate and sustain ongoing corporate growth.

It was a bumpy ride. The new product development effort sucked up resources that the company did not initially have (both human and financial). The development of a larger organization included the usual complement of bad hires and redirection. Boot-strapping the financing of the growth, rather than borrowing a bunch of money, caused serious frustration in the early going. But Tom persevered, knowing that neither resignation nor termination were options.

While the “rebuilding year” (four) is now in the rearview mirror, it’s not over. The vision that Tom developed for his enterprise has the entire team working towards “the next big thing” for the business. His bank account is healthy, his workforce is high caliber, and the team has a sense of direction. The need for rebuilding has been replaced by a drive to stay on top.

The Phillies should be so lucky.

Are You Asking the Right Questions?

2015 again holds a high degree of uncertainty for CEOs

Deja vu?

You’re racing to the end of another calendar year and, guess what?  For a CEO, this one ends just like the last!  Not the details, of course, but you’ve been here before when it comes to the overall uncertainty about the business environment.

The U.S. economy has experienced its fastest 6-months growth in the past ten years, and yet the rest of the world economy looks much less sanguine, and many are concerned about how this may affect the U.S. economy.

On the national political scene we will have both a Republican House and  a Republican Senate come the New Year, and yet the most credible voices are predicting that gridlock in Washington will continue.

Technology continues its relentless advance, providing new tools for operational efficiencies; and yet it simultaneously confounds and frustrates most of us when it comes to marketing and the “promise” of social media.

With regard to finance, the business bankers are speaking more sweetly, but their banks are still behaving like the man who offers you an umbrella when the sun is shining but can’t seem to find one for you when it’s raining.

This uncertainty is nothing new to you!  A CEO deals with it, planning for it and managing through it.  But the real rub for most CEOs is on the personal side.  With the holidays upon us, and with the end of another year at hand, I encourage you to ponder:

  • Are you having any fun?
  • Are you making money?
  • Are you becoming more skillful at something?
  • Are you generally headed toward your destination, toward your vision?

Underlying these questions is the really big one: “How ARE you??”  That is, how are you doing intellectually, physically, and spiritually?

Do yourself a favor. Find a few minutes, no later than January 1st, to answer this question, in writing:  Indeed, how the heck are you?

 

Specifically, address your intellectual state, physical state, and spiritual state.  Then commit to taking actions that will result in progress in one, two, or all three areas in 2015.  After you’ve done this, go back to those four questions regarding fun, money, skills, and vision, and take a crack at them. It’s a great way to clean out the cobwebs and launch your next twelve-month journey.

I wish you the very best in the New Year!

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?

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.

Do You Hear What I Hear?

In the holiday season just past, I often heard one of my favorite Christmas songs. The lyrics incorporate three questions:

  • Do you see what I see?
  • Do you hear what I hear?
  • Do you know what I know?

While the poetry and melody surrounding the three questions are lovely, my mind occasionally drifts to the application of these questions to the life of the CEO. With regard to your employees, be aware that they do not see what you see; they do not hear what you hear; they do not know what you know.

This is an especially relevant point at the beginning of a new year. Continue reading

Independence Day

The business owner understands "independence" differently than the employee.

Oscar Celebrates Independence Day

Let me first wish you a Happy Holiday, whether or not you’re reading this on July 4th.  But I want to use this space to share a very brief reflection on the different interpretations of that word “independence”.  Specifically, through the eyes of the one who does not own a business, followed by the perspective of the business owner.  Here goes.

The independence of owning a business means… Continue reading