Extraordinary Business

In my September newsletter I discussed the concept of change. Largely I see the majority of us resistant to change (which I would doubt there would be many arguments against this) and as a society/business community expecting change to happen instantaneously. We are very much in a "now" society. Technology has spoiled us to the point where we demand immediate results. Yet there is something to be said for slowing the process down. And truthfully, by taking more time on the front end, we make things work much smoother on the back end.

Think of the place where you work. How often do things change? How often is that change met with resistance? How many of you are familiar with the "Flavor of the Month"? Often the running joke with each new initiative is "this too shall pass" and your employees play the waiting game to see when you will get tired of the new process, idea, or concept and go back to doing things as before. In fact, your employees can condition you to fail in the change process. In some examples I have seen the stand off last for years! Yes, years. And the only result to come out of it was going back to the old way of doing things so it's less painful. This all because of our need to make changes happen quickly and dramatically.

In my newsletter I spoke about incremental change. This process is most effective in companies that have been highly resistant to change in the past. It is a way of conditioning them to be more receptive to change in the future. In addition, the success rates are much higher that the change will be implemented and integrated into your business. To see some of the points, I will refer you to the article here: http://cdn.shoutlet.com/server/bar/51644/8555/0/s/0. To add to that discussion, I will continue on.

The idea of change is simple, yet the execution of it can seem complex. And in a way it is because to truly implement most changes, you need the full buy-in of your staff. The larger the organization, the more people you have to get on board. In most cases, change is driven top down. Somebody in leadership comes up with an idea and wants it implemented. There may, or may not, be a discussion among management on this change before it is passed down to the next layer. Middle management is given the concept and is then asked to drive it down to the front lines. Here it is crucial that middle managers understand all the how's and the why's in order communicate it effectively to the staff. Often this does not happen as effectively as it should. The change may be shared in meetings, emails, or newsletters, but full buy-in hasn't taken place. In the end this leads to resistance and not seeing the full benefit of the change process.

What if the change process was reversed? Instead of speeding the process up hoping to see immediate results, it was backed down to a more realistic time frame. Also, what if the seeds of change was planted in the minds of the employees so that instead of a top down approach, you drove the change from the bottom up. How might that change things?

Right now you might be saying to yourself, "We need to move quickly so we can react quickly." This is true, but more so when you are doing just that: reacting. Often business decisions, personal decisions, political decisions, etc. are a result of responding to an impending crisis. Sadly, we might have even been warned about the outcomes of this crisis earlier where we could have taken action, but the motivation wasn't there for whatever reason. Then when we are forced to deal with it we react. We need to become better at looking further ahead to prevent this from happening. We need to find ways to take the important but not urgent needs and prioritize.

You may also be thinking, "The employees won't come up with the right solution, and then when we don't use it they will be upset." That is because we have conditioned people to pass their problems to others. This is especially true of many managers. Managers often take on the burden of their staffs issues because they live in a false belief that it's quicker and easier to fix the problem themselves instead of coaching and teaching their people how to effectively deal with it. In essence, the ownership of the problem/idea is passed from the employee to the leader. So if it doesn't work, it's now the manager's problem. This is why it is so important to keep ownership where it belongs, on the individual.

If you are able to improve these two areas: being proactive instead of reactive and placing ownership and accountability on your people, over time you will be able to make change happen quickly and effectively. Take steps today to create a culture of change and the first step will start with you!

I encourage others to share their thoughts and ideas here. Open up a discussion and through that learn how to make change happen.

Labels: "Dan Paulson", "Daniel Paulson", "InVision Business Development", Business, Business Coaching, Change Management, Coaching, InVision, Leadership, process, Professional Development, Strategy

How versed are your people on the direction of the company? Here is a quick way to find out and it requires only two questions. First, take a random sampling of your staff. Include some leaders as well as front line and start a discussion with them.

Ask them these two questions:

1. What are the primary objectives for the company?
2. What is your role in accomplishing them?

Wait for the response on each question and compare notes. If your employees and leadership gives answers that closely match yours, then you are on the right track. However, if your staff looks at you with a blank stare, you are going to have some work to do.

What is most important now is that you have the right people doing the right things. If your people aren't working on the right goals, you will be wasting time and money. It could also be a sign that you need to review each persons' job expectations and streamline process. Make sure the right work is being done to provide the best performance and service for the company.

Labels: "Dan Paulson", "Daniel Paulson", "InVision Business Development", Business, Business Coaching, Change Management, InVision, Leadership, marketing, Strategy, Vision

Between 1982 and 1997, Circuit City was growing at a rate 18.50 times the market* and was considered one of the strongest companies in home electronics. Recently it was announced that Circuit City would be closing all its locations and liquidating its inventory after a failed attempt to find a buyer.

Circuit City was one of the companies highlighted in Jim Collins book "Good to Great" which studied the traits great companies possess that allow them to sustain growth above the industry average. Besides Circuit City, Fanny Mae has also experienced its own problems in the wake of the crash of the housing market.

We need to remember that corporate performance can be a fragile thing. There are many factors to calculate why these once great businesses fell and in the end, Jim Collins may have said it best himself in the book's first chapter; Good is the enemy of great.

The key to thriving in any environment is to address the little problems no matter how insignificant they seem to be at the time. These are the issues often overlooked when business is doing well, but are the Achilles Heel when business tumbles. Businesses typically don't fail overnight, they are slowly destroyed by complacency and oversight. The story of these two once great companies might have ended differently had they addressed the warning signs that began to surface years ago.

*"Good to Great" by Jim Collins, Harper Collins Publishers

Labels: "Dan Paulson", "Fanny Mae", "Freddie Mac", "Good to Great", "InVision Business Development", "Jim Collins", Change Management, growth, Leadership, marketing, Sales, Strategy

Now that 2009 is upon us, let's take the time to approach the year with new determination. While little has probably changed, let's all make it a point to change our attitude about our business and the economy. Look at 2009 through a new set of eyes and focus on how to grow your business. the only way we can all make a positive impact is by finding a way to win, not to survive. It is possible, I have seen it. Several businesses I know are experiencing double digit growth right now. Our jobs as leaders is to take advantage of opportunity. Find that opportunity now! Let's not squander it away with the hope that someone else will change our future for the better.

Labels: "Dan Paulson", "Daniel Paulson", "InVision Business Development", Business, Business Coaching, Change Management, Economy, growth, Management, marketing, Strategy

I recently read an article in Inc. magazine called Paradise Lost by Bo Burlingham. What caught my attention was the story was about Reell Precision Manufacturing. This company had been recognized for its culture and now was struggling for its life.

Reell was a successful company with a strong employee focus. In fact, all decisions were made in the best interests of the employees. For more than 30 years, the company had worked through good times and bad. When times got tough, the leaders took pay cuts to avoid reducing staff. The company was ran by three CEO's that made decisions based on consensus. The formula worked. The company experienced unflagging loyalty while having turnover well below the industry average. So what caused the dramatic turnaround in performance?

Reell's industry was changing. Responsible for making laptop hinges, they found their markets moving overseas. While they were able to make changes and compete for a while, they became burdened by keeping up with increasing sales. Those sales forced capital investments that forced the company to focus on generating more sales to pay for the equipment. Reell became forced to compete on price and reduced margins. In the short term, Reell's decision to globalize their laptop hinge product prevented layoffs. In the long term it nearly destroyed the company because of its failure to balance out the needs of the employees and the needs of the business.

The moral of this story is looking at all aspects of your business no matter how well you are doing. Too much emphasis in any one area can be disastrous.

Article:
Paradise Lost
By Bo Burlingham
Photographs by Mike McGregor
Magazine: Inc.
Issue: February 2008

Labels: Business, Business Coaching, Change Management, Coaching, Leadership, Management, Planning, Sales, Strategy

We need a few good people. Or at least that is what I hear my clients say. Gone are the days of the company man. Now many people see jobs as merely stepping stones to get where they want to be. This is quite a turn around from our parent's culture that hailed the person working 20+ years at one job.

What has caused this change. The greatest factor might have been big business itself. Everyone has heard the story of the dedicated employee ousted from his position due to cutbacks and sending jobs overseas. Other factors may be benefits. As benefits change in relation to the needs of the employees, we see even less loyalty.

This takes us to our current generation. Most employees nowadays consider 2-4 years a long-term commitment to a job. Unlike their parents, they are also more concerned about balancing their personal life with their work. Many are no longer willing to work for just the almighty dollar.

So what is your company doing to find and retain good people? When businesses fail to keep good employees, they should first look at themselves before blaming the employee for leaving. What are you doing to develop your culture to attract people? How do you keep your staff engaged in their work? What are you learning about your employees needs that will let them know you value them and wish to keep them around?

If an employer treats their staff as an expense, they will often find it difficult to retain and hire good people. Given there are fewer people entering our workforce right now, you want to make sure you are a place people talk about working and not about leaving.

Labels: Business, Change Management, Leadership, Management, Organizational Development, Professional Development, Strategy

Ever wonder what your business is costing you? Many of you can look to your P & L's to find a number. While that might be accurate to represent the total dollars you are spending, I am more interested in what lies beneath those numbers.

A company with a good strategy, strong leadership, and effective staff can be far more profitable than a business with a good strategy, weak leadership, and a staff unclear of their direction. I have seen companies with comparable sales in similar industries that have differences of hundreds of thousands of dollars (or more) in profitability. That difference could be the measure of what your business is costing you. But how can you be sure?

Here is a little test to start reading between the lines. Please keep in mind that if we are talking about averages it may not mean you do not have room for improvement. Remember, an average is little better than a C grade.

1. Advertising: How are your advertising expenses compared to the averages for your industry? What do the best companies spend? Some companies spend over four times the amount on advertising compared to the leaders in their industry. Unfortunately in most cases more advertising does not lead to greater results.
2. Turnover: How long do you retain people compared to your peers? Higher turnover can increase human resources costs exponentially through training, benefits, wages, unemployment, advertising (want ads), and recruiter bills.
3. Strategy: Great, you have a strategy. So who knows about it? How effectively is it executed? Over 90% of businesses fail to realize their strategy to its fullest potential and over 95% of employees in most organizations do not know what their company's strategy is. This can lead to even the right people doing the wrong things. In addition there can be multiple agendas, wasted time on projects not congruent with strategy, not to mention frustration, anxiety, loss of motivation, and ultimately lost sales.
4. Quality: So your quality is good, but can it be better? Each year, millions of dollars are lost to quality issues. These losses go beyond equipment failure into people related issues. Poor leadership can lead to poor morale and the "I don't care" attitude.
5. Sales: So your sales are down. It's the economy, the political climate, increased competition, the web, we lost our lucky rabbit's foot, etc. Remember, in the face of any bad economy, there are always companies that are growing and profitable. If you are not one of those companies that is growing and profitable, then you could be dying a slow death. Are sales fluctuations a blip on the screen or have steady decreases taken a bite in your profitability? There could be many reasons including the economy, but do you want your business to be influenced by the economy or do you want to be the best in your industry?

So what's your business costing you? What if you could increase your bottom line anywhere from 10-50% just by changing some of the things you already do without adding new technology? Many businesses seem to let these hidden costs go. My guess is because they cannot be seen. They remain hidden in the numbers. I would also guess that even if some companies knew the problems, they might feel powerless because they don't know what to do. What are your thoughts?

Labels: Business, Change Management, Leadership, Management, Planning, Sales, Strategy

I recently heard a radio personality comment on a football game he was watching. The comment was related to how the coach managed the clock and how difficult it must be to keep track of the time outs while managing the plays and accounting for the obvious obstacles created by the opposing team.

What's interesting is as a leader you experience similar change every day. The Leader's team is their people and strategy is their playbook. Instead of one team, leaders are often competing against many teams at the same time. The clock you manage is through your annual goals and your fiscal year. As with any team, you have your standout players, your team players and those who fail to deliver their best.

As you look at 2008, what are some of the biggest challenges you see with meeting your goals?

Labels: Business, Business Coaching, Change Management, Leadership, Management, Personal Development, Professional Development, Sales, Strategy, Wealth

Carla Johnson of the Associated Press recently wrote about a recent study that found people "who see themselves as self-disciplined, organized achievers have a lower risk for developing Alzheimer's".

It appears this personality helps protect the brain. Some of the "dutiful people" were examined after death and found to have physical symptoms in their brains that would be consistent with the criteria for Alzheimer's, yet these people had shown no signs of the disease.

Robert Wilson of Chicago's Rush University of Medicine who co-authored the study said, "This adds to our knowledge that lifestyle, personality, how we think, feel, and behave are very importantly tied up with risk for this terrible illness."

In a way it might be said that hiring a coach could assist you with protecting yourself against Alzheimer's. While there is no study to back up how coaching can help, this study does suggest it could make a difference. A good coach should help you define your purpose and live a dutiful life by teaching self-discipline. So if you are considering hiring a coach to better yourself professionally, you may also reap greater benefits personally.

Labels: Alzheimer's, Business, Business Coaching, Change Management, Coaching, Culture, Health, Organizational Development, Personal Development, Professional Development