By John E. Anderson
Effective leadership is having a clear goal that inspires your group to quickly achieve it. How can you support your group taking action in their departments and thereby reach the company-wide goal?
Milestones Guide Progress
Establishing agreed upon milestones for the group can reduce confusion and disagreement about the sequence of action steps. Strike a balance between control and direction to avoid confusion. Invite the group to create a map to reach the goal.
Too much control and you stifle their leadership training and the value of new ideas that may hold greater possibilities than you currently see. Too little direction and the group’s diversity may result in discord and lost time. Your leadership here is crucial, and we’ll talk more about that in subsequent articles.
Develop Leadership Skills
One way you might move forward is to teach your group the leadership skills necessary to plan and budget their departments. It benefits you in two ways: you can observe and guide how they do it now and you make the group more self-managing in the future. The pleasure they get contributing to charting the direction of the organization inspires them to improve. If done consistently over time, they will require less of your time to be more successful operating the venture.
One goal of leadership is to decrease your importance in daily operations. This frees you to work more on company direction and the future. The value of your company is inversely proportional to your daily involvement in operations. Become least important to achieve greatest rewards.
Simple Written Plans
Encourage your group to read “Write Your Business Plan” and apply it to their department activity drafting their “Simple Plan Outline” for your review and comments. Ask department supervisors to rough out their ideas for the year and first, second and subsequent quarters.
Sales targets and marketing plans can be tied to purchasing seasonal stock with ideas for clearance of slow stock. Department purchasing budgets can be tied to these simple department plans. Once every three months the sales and actions accomplished can be compared to the plan and budget to evaluate and apply what’s been learned to the next quarters. In this way, annual department targets can be better accomplished by routine achievement of milestones. Plans must be flexible to adjust as new opportunities or difficulties arise. You may be planning an employee meeting. This article could contribute to that meeting. Let me know and we can discuss and modify instructions and outlines for your different departments.
john@BeCauseBusiness.com
800.249.1622
Wednesday, January 7, 2009
Write Your Business Plan
By John E. Anderson
Why write a business plan? There are two main reasons. A business plan helps entrepreneurs to improve operational sustainability while reducing risk. Banks and investors typically require a business plan to demonstrate the business has been carefully designed and possible difficulties have been identified and solutions considered.
How to begin:
Define your objectives.
Are these objectives realistic?
How will you reach your objectives?
From your answers to these questions you can produce a basic plan.
A Plan Outline
1. Executive Summary – brief description of your business, what you do and how you do it.
2. Customers – who are they, their needs and how you fill those needs.
3. Competition – know everything about them, strengths, weaknesses, pricing and costs.
4. Suppliers – strengths and weaknesses.
5. Marketing – sales channel, how you reach customers, what is your value proposition message, how you communicate to them and do you have the funds to do that.
6. Staff – Key staff strengths and weaknesses, what functions do you outsource?
7. Processes – methods, policies and procedures, employee job descriptions and duties.
8. Financial – forecast for 3 to 5 years. Profit and loss and balance sheets.
Completing this plan will clarify your objectives. It will be a dynamic plan, changing every day.
Keep your plan up to date with a quarterly, annual and multi-year perspective. Refine and develop the plan each 90 days to reflect changes.
As you develop your plan, consider your personal objectives. What personal lifestyle, investment and retirement goals do you have that you would like your business to help you achieve? Your business is your profit engine to create greater personal wealth and security.
Create Cash Reserves
Building a secure, personal investment portfolio and cash reserve will enable you to make loans to your business as it goes through varying economic circumstances. Being a successful business owner requires strategic, long-term planning with preparation for booms and busts in the marketplace.
Anticipate the Unexpecteded
You owe it to your family, employees and customers to anticipate and prepare for all eventualities. Training and development of key employees for succession includes your transition out of daily responsibilities at some point. This planning and employee training is a critical responsibility best done over many years to insure a successful continuation of the firm.
john@BeCauseBusiness.com
800.249.1622
Why write a business plan? There are two main reasons. A business plan helps entrepreneurs to improve operational sustainability while reducing risk. Banks and investors typically require a business plan to demonstrate the business has been carefully designed and possible difficulties have been identified and solutions considered.
How to begin:
Define your objectives.
Are these objectives realistic?
How will you reach your objectives?
From your answers to these questions you can produce a basic plan.
A Plan Outline
1. Executive Summary – brief description of your business, what you do and how you do it.
2. Customers – who are they, their needs and how you fill those needs.
3. Competition – know everything about them, strengths, weaknesses, pricing and costs.
4. Suppliers – strengths and weaknesses.
5. Marketing – sales channel, how you reach customers, what is your value proposition message, how you communicate to them and do you have the funds to do that.
6. Staff – Key staff strengths and weaknesses, what functions do you outsource?
7. Processes – methods, policies and procedures, employee job descriptions and duties.
8. Financial – forecast for 3 to 5 years. Profit and loss and balance sheets.
Completing this plan will clarify your objectives. It will be a dynamic plan, changing every day.
Keep your plan up to date with a quarterly, annual and multi-year perspective. Refine and develop the plan each 90 days to reflect changes.
As you develop your plan, consider your personal objectives. What personal lifestyle, investment and retirement goals do you have that you would like your business to help you achieve? Your business is your profit engine to create greater personal wealth and security.
Create Cash Reserves
Building a secure, personal investment portfolio and cash reserve will enable you to make loans to your business as it goes through varying economic circumstances. Being a successful business owner requires strategic, long-term planning with preparation for booms and busts in the marketplace.
Anticipate the Unexpecteded
You owe it to your family, employees and customers to anticipate and prepare for all eventualities. Training and development of key employees for succession includes your transition out of daily responsibilities at some point. This planning and employee training is a critical responsibility best done over many years to insure a successful continuation of the firm.
john@BeCauseBusiness.com
800.249.1622
Friday, January 2, 2009
Adapting to Change
This article was first presented as a talk December 16, 2008 at 6 a.m. to Early Words, a Toastmasters International group, at the Monticello Hotel, Longview, Washington. An audio of this article is available at www.BeCauseBusiness.com by selecting the title above - Adapt To Change.
By John E. Anderson
Economic concerns have become frightening. The news has been bleak nationally, globally and locally for credit, investments and rising unemployment. Today's news is wildly conflicting. Manufacturing in the U.S. is at it's lowest level since 1948, on the one hand. And GM and Chrysler received their initial bridge loans prompting the stock market to surge 200 points, the largest rally since November. Our economy is on a roller coaster of ups and downs.
As a management consultant and business coach, I have been advising clients throughout 2008 to trim expenses, particularly payroll. In the last weeks of the year, I've been speaking to business groups urging owners NOT to cut payroll. Instead, focus upon how to improve products and services, specifically by quickly improving the training and development of staff, and thereby increase customer satisfaction.
What do your clients value most in what you offer? How might you add value? Communicate directly with your clients. Collaborate with them closely in the products and services which they need most. This is the time to insure your customers know you're there and focused on meeting their most crucial needs. Meet with your employees to engage them. If they wish to remain employed, they must focus on better serving customers deepest needs. Make your workforce more productive. Additional layoffs will weaken your firm's profit engine and only accelerate the economic decline and worsen foreclosures and the economy.
Today I'm going to talk briefly about three business concepts which I consider particularly relevant: creative destruction, appreciative inquiry and project management.
Creative Destruction
One way we may look at this current economic period is as a time of "Creative Destruction." The idea of creative destruction was introduced in the 19th and early 20th centuries by Mikail Bekunin, Friedrich Nietzsche and Werner Sombart. Sombart wrote Krieg und Kapitalismus (War and Capitalism) in 1913 (p. 217), where he wrote: "again out of destruction a new spirit of creativity arises." Companies and products that once dominated socieites and cultures are replaced. Examples of companies include Xerox in copiers and Polaroid in cameras. Walmart has replaced Montgomery Ward, KMart and Sears by using superior marketing and management of inventory and personnel. Product examples include cassettes replaced by 8-tracks, then CDs and now mp3s.
Successful innovation leads to market power which erodes the profits of existing giants only to itself succumb to the pressure from new entrants to the field. General Electric is the third largest company in the world. It has survived by routinely reinventing itself. GE has used the principle of creative destruction with their product lines scaling back and then discontinuing products which are still profitable if new innovations are not introduced. This is done to keep their lines fresh, creative and dynamic.
Appreciative Inquiry is building on what's working, not fixing what's broken. What is working best and how can you expand that in your company? Work with your employees to identify what your customers love most about what your firm does. Collaborate with them on how to deliver it faster, better and cheaper. Then, collaborate with your customers on how those products solve their problems and together figure out how to meet your clients' deeper needs faster, better and cheaper. Innovate to survive.
Project Management is a science of getting things done with groups of people. Every organization has stalled projects and dilemmas. Learn more about project management methods to accelerate your project completion. I am one of a group of consultants offering free workshops on a variety of management methods to help groups adapt to our challenging times. We connect businesses with the exact skills and knowledge needed via networks of business resources.
We offer free business assessments to collaborate with owners, evaluating what projects hold the greatest promise for their business sustainability and survival.
To conclude, an attitude of aptitude is essential to avoid depression when chaos is everywhere. Each of us must be leaders, take control of our direct individual situation and makle the best we can with it. We can't just give up, sit in bed and pull the covers over our heads. Yes, there are problems, so what there have always been problems. Let's look at what is working. With credit stopped, we're reducing debt. Is it hard? Of course, but it'll force us to be more creative and value what we have.
Can I meet my clients' needs more effectively? What would help my clients fulfill their needs better, faster or cheaper? Promotion of our staff, product and service will capture clients' attention. Then as the market recovers, our market share will expand and we will have grown and benefited. The time is NOW to organize priorities, establish what's needed and train staff to take responsibility to do the same with their departments. We can do this! What's next? What can we do together? Where shall we start?
john@BeCauseBusiness.com
800.249.1622
Successful innovation leads to market power which erodes the profits of existing giants only to itself succumb to the pressure from new entrants to the field. General Electric is the third largest company in the world. It has survived by routinely reinventing itself. GE has used the principle of creative destruction with their product lines scaling back and then discontinuing products which are still profitable if new innovations are not introduced. This is done to keep their lines fresh, creative and dynamic.
Appreciative Inquiry
Appreciative Inquiry is building on what's working, not fixing what's broken. What is working best and how can you expand that in your company? Work with your employees to identify what your customers love most about what your firm does. Collaborate with them on how to deliver it faster, better and cheaper. Then, collaborate with your customers on how those products solve their problems and together figure out how to meet your clients' deeper needs faster, better and cheaper. Innovate to survive.
Project Management
Project Management is a science of getting things done with groups of people. Every organization has stalled projects and dilemmas. Learn more about project management methods to accelerate your project completion. I am one of a group of consultants offering free workshops on a variety of management methods to help groups adapt to our challenging times. We connect businesses with the exact skills and knowledge needed via networks of business resources.
Free Business Assessments
We offer free business assessments to collaborate with owners, evaluating what projects hold the greatest promise for their business sustainability and survival.
To conclude, an attitude of aptitude is essential to avoid depression when chaos is everywhere. Each of us must be leaders, take control of our direct individual situation and makle the best we can with it. We can't just give up, sit in bed and pull the covers over our heads. Yes, there are problems, so what there have always been problems. Let's look at what is working. With credit stopped, we're reducing debt. Is it hard? Of course, but it'll force us to be more creative and value what we have.
How do I provide value and to whom?
Can I meet my clients' needs more effectively? What would help my clients fulfill their needs better, faster or cheaper? Promotion of our staff, product and service will capture clients' attention. Then as the market recovers, our market share will expand and we will have grown and benefited. The time is NOW to organize priorities, establish what's needed and train staff to take responsibility to do the same with their departments. We can do this! What's next? What can we do together? Where shall we start?
john@BeCauseBusiness.com
800.249.1622
Friday, June 20, 2008
What's Important, Setting Goals, Establishing Priorities
Determining What Is Important,
Setting Goals and Establishing Priorities
As a successful entrepreneur, you perform these three actions every day, all day. Much of the time you do this tactically to achieve short-term objectives. Of course, running in the background is your strategic perspective. How today’s and this week’s achievements will fulfill your long-term targets for the month, quarter and year.
Today, right here and now, I invite you to put these ideas in writing. You know the power of written goals. Many studies have shown that written goals are much more frequently accomplished than great ideas merely thought or spoken. Many opportunities and brilliant plans are lost because they are not captured and acted upon.
Spend a few minutes now and draft out some ideas. What’s important? What are your goals? What are the priorities and sequences necessary for producing the results you see as possible and desirable? These can be for your business or personal life or both.
I look forward to hearing from you!
Thursday, January 24, 2008
Develop Talent and Make Room
Determine what processes could improve the flow of work accomplished and customers served. Add value while you streamline actions.
Redesign your job descriptions and duties. Reconsider how the jobs interact. How is work handed off from one process to the next?
What are the skills and talents needed by a worker to best perform each job? Advertise for those abilities and recruit them. Then enhance the training you've done with crafted, written explanations to get consistent results.
As you groom your talent, you must make room for them to move up. To make room, you will need to get out of the way.
Exit planning, succession and transition strategy is a key to growing your venture.
Redesign your job descriptions and duties. Reconsider how the jobs interact. How is work handed off from one process to the next?
What are the skills and talents needed by a worker to best perform each job? Advertise for those abilities and recruit them. Then enhance the training you've done with crafted, written explanations to get consistent results.
As you groom your talent, you must make room for them to move up. To make room, you will need to get out of the way.
Exit planning, succession and transition strategy is a key to growing your venture.
Monday, January 7, 2008
Step into Tomorrow - Begin Exit Planning Today
This is the official announcement of our Business Exit Planning seven-class series from January 23 through March 5th. I love new projects and this one with Dr. Gary Reiss has been very interesting over the last six or more months. It has been challenging putting together the business issues like delegation, compensation, and accounting together with the psychology of what stops us and conflict resolution.
The last few months have been hectic and exciting. We are working with several new clients using strategic planning around exit issues like succession, partner responsibilities and buy-sell issues, to name a few.
When we do exit planning we’re thinking of tomorrow for ourselves as owners, as well as for our customers, employees and community. Exit planning is recycling companies instead of just closing them and throwing years and years of good work away.
Environmental and sustainable consciousness is particularly critical for business because of how much business impacts the planet and all of us. But, what makes a company green? How green is a company shipping containers of goods thousands of miles and printing thousands of color brochures? Who decides what’s “green?” We believe “green business” is a gradual process in which we are becoming conscious of our footprint. Then we can begin to figure out ways to consider what we might do better. Every business wants to be sustainable, at least on a financial basis, having repeat and referral customers, employees who are competent, stable and have high integrity.
Exit planning is particularly important given current demographics. There are so many businesses owned by folks 40 to 80. Creating a bigger conversation about adequate planning may contribute to more ventures being effectively transferred to younger partners, kids and employees. Without planning, there will be many companies closing and disruption to customers, vendors and the natural environment.
Delegation and compensation are employee issues for all organizations, but for exit planning they are particularly relevant. What are the actions that a company needs to prosper and grow? Have you and your employees clearly identified these key behaviors? Do they have deleterious side effects? What are the behaviors that your company is rewarding? Let us tell you about the traits research has found contributes to a climate that fosters employee enthusiasm and productivity. Before you leave your business infuse it with possibility.
Come explore these and other topics in our Business Exit Planning series.
Thursday, November 15, 2007
Exit Planning, Venture Capital and Wings to Fly
We entrepreneurs get a thrill when we see an opportunity to put together solutions that solve problems for customers and make business sense.
Designing what your business will look like when fully developed and how you will transition from it is a mark of mature business insight.
Once an entrepreneur has begun and sold a couple business ventures, new insight is gained into beginning ventures which can become in themselves a finely polished jewel to be marketed and transferred profitably.
Venture capitalist thinking is this ability to utilize the resources of new ideas, skills, personnel to serve a particular market niche, then making it happen with project management and chutzpah,that spirit of audacity and spunk.
What are your dreams? Are you making them happen like you'd like? Examine the components and get expert advice to take your venture to the next level so you can step out and give the next entrepreneur the chance to play. Don't be too attached or your ladder becomes chains. Wings are better.... take flight!
Designing what your business will look like when fully developed and how you will transition from it is a mark of mature business insight.
Once an entrepreneur has begun and sold a couple business ventures, new insight is gained into beginning ventures which can become in themselves a finely polished jewel to be marketed and transferred profitably.
Venture capitalist thinking is this ability to utilize the resources of new ideas, skills, personnel to serve a particular market niche, then making it happen with project management and chutzpah,that spirit of audacity and spunk.
What are your dreams? Are you making them happen like you'd like? Examine the components and get expert advice to take your venture to the next level so you can step out and give the next entrepreneur the chance to play. Don't be too attached or your ladder becomes chains. Wings are better.... take flight!
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