Tag Archives: Goals

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.

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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?

The CEO’s Planning Omissions

It’s been my experience that many CEO’s either omit or give short shrift to three major parts of their annual business plan.  The first is how they wrestle through Critical Success Factors. These links between the upfront analytical sections of your plan and the downstream implementation sections provide a solid reality check against your objectives. They also force you to consider all reasonable alternative strategies for achieving your major objectives. Continue reading

Great CEOs Don’t Overlook the Nuggets

CEO Training by the SBTDC

CEO Trainer

I participate in leading a program for business owners that is offered by the Delaware Small Business Technology and Development Center (SBTDC).  The participants meet once a week for three hours over a six week period.  During that time they become engaged in a thoughtful analysis of their business and of their plan for that business.  The SBTDC calls this their Business Development Network.

This program covers the fundamentals of running and ultimately exiting a successful business.  While I was listening to Carla Holland (shown in photo) launch another six-week series recently, I made a list of the basic concepts she discussed in that first session.  They are listed below. Continue reading

Unique Job, Lonely Role

CEO accountabilities are unique within the enterprise

A CEO

As CEO, or business owner, or company president, you occupy a unique and a lonely position. Not surprisingly, your job description is a one-of-a-kind, whether you have actually written it or not. You are accountable for certain high level responsibilities, because only you can perform them. It is these responsibilities that should be your guide to priorities, to how you spend your company time.

Here are the universal accountabilities for someone running a private business, regardless of the size of that business. Continue reading

What to keep, what to shuck

Every CEO should read Built to Last

A Business Classic

This week I led two sessions of my Workshop on Strategic Thinking. Preparing for these sessions reminded me of the significance of the 1994 business classic by Jim Collins and Jerry Porras, Built to Last. One of the most important concepts of the book is the theme, Preserve the Core / Stimulate Progress.

Especially at the start of a new year, Continue reading