Big changes in a corporation can offer up many opportunities to gain a little more ROI out of the business. Below are some examples of how three companies in different industries accomplished this goal by asking themselves some simple questions:
A client in the IT industry just relocated to a larger headquarters. They used the relocation as an opportunity to dramatically reduce remaining paper files. Not only did they create an additional 10% of available square footage, they are proud to role model current backup and storage methodologies.
Another client in professional services dramatically increased efficiency when they acquired a smaller more specialized firm to become a new revenue stream and serve clients better. Some of their increased efficiency was accomplished through their approach to integrating the newly acquired firm. Recorded training sessions were posted on their Intranet. Standard operating procedures (SOPs) were updated based on the orientation and Q&A sessions.
An electrical distributor went for ISO certifications before its competitors. As our readers know, the application process can be tedious. They used a participative process to improve processes, update training programs, and change job descriptions and performance reviews. They went even further and used the ISO certifications to increase the visibility of their company, be the basis for customer guarantees, and attract prospective acquisitions.
Even coping with uncertainty or changing regulations can become an opportunity to revisit purpose/mission. The Affordable Care Act (OBama Care) has cued more than one healthcare organization to consider increased specialization, collaboration or merger.
When you start a significant change project, try to pay special attention to NOT inadvertently PROTRACT A KNOWN PROBLEM. Could your relocation cue you to hire a real CFO and not continue to tolerate incomplete analysis provided by a staff accountant who is over his/her head? Could you leverage an acquisition to establish a real board of directors? Could you leverage being nominated for a major award (“Best Places to Work”, “Entrepreneur of the Year”, INC 500, etc.) to improve your measurement of employee or customer satisfaction?
Why would a blog about growth strategies for midsized companies include an entry about couples?
… because as business leaders, our personal relationships can have a profound impact on our outlook, confidence, and judgment.
More and more bright ambitious business leaders are married to other bright ambitious leaders. A CEO of a fast rising technology company is married to a University Provost. The President of a multi-location distribution company is married to a Psychiatrist who is on a book signing tour. Two STARS living together.
Knowing what works and does not work for TWO STAR couples is particularly important if you and your mate are in the same or similar fields.
First, it is important to separate the businesses, careers, and support teams for each spouse. If the Psychiatrist needs an editor for his/her books, that editor should NOT also be asked to do editing for the President of the distribution company. Sharing vendors may seem time and cost efficient, but it invites meddling, criticism, and loss of boundaries. Don’t put a vendor “in the middle.”
Second, most TWO STAR couples need three personal budgets and accounts. The University Provost has one and the Tech CEO has another. They can have a third combined account and/or household budget. This reduces jealousy, competition, and arguments over money.
Third, most TWO STAR couples respect one another and actually do want advice from his/her bright ambitious mate; but receiving advice in dribs and drabs is not helpful. Providing a structured time and sufficient information to receive informed advice can help.
I guess I have just seen too many instances where stunted business growth can be traced back to input from critical or competitive spouses.
Aldonna R. Ambler, CMC, CSP has earned the right to be called THE GROWTH STRATEGIST®. She has won over 2 dozen national and statewide “entrepreneur of the year” awards for the resilient growth of her international businesses across 4 recessions. Her midsized BtoB clients get on…and then stay on…the published lists of the fastest growing privately held companies. She owns and operates a suite of companies that help privately held midsized companies achieving accelerated growth with sustained profitability® through opportunity & resource analysis, 4 approaches to strategic planning, executive advisory services, growth financing, and targeted search. 2013 is Ambler’s 9th year hosting a weekly peer-to-peer-to-peer syndicated on line talk show that features interviews with CEOs/Presidents of midsized companies (typically between $20 and 200 Mil/yr.) sharing success tips about the growth strategy-of-the-week. An archive of over 300 interviews is available at www.GrowthStrategistShow.com. She can be reached toll free at 1-888-Aldonna or at Aldonna@AMBLER.com.
Does this sound familiar?
The tedious process of major prospects makes your sales people sound like they are waiting for several decisions.
The production department(s) express agitation about waiting so long for the accounting department to distribute financial reports. They want to know how much gross profit they generate and if the numbers suggest they have to hire, make do, or lay off anyone.
And the marketing department can’t tell if they can start working on their new campaigns.
It’s not a good sign when your department heads are waiting and looking for data.
Yes, you need timely financial reports about how last month, last quarter, and last year turned out. But creating better results for next month, next quarter and this year is more important.
Putting department heads together once/month to compare projections for the next month, the next three months, the next twelve months pays off. What revenue can they count on for each period? What is the best educated guess about additional revenue that can reasonably be expected? What direct costs (COS) can already be projected? Which capacity utilization and billing multipliers apply to improve the short term future?
Accountable department heads do not just coordinate, react, and allocate resources on a day to day basis. They learn the metrics and create next month’s success, next quarter’s improved results, and next year’s growth.
Are your department leaders putting their heads together to compare projections and make decisions to get ahead of day to day implementation and create success?
This is especially important if/when your company is going after larger more complex clients. A client going through a merger or IPO will bring even more bureaucracy and delay. To prepare for larger accounts, it’s essential to pick up speed and get ahead of your own day to day process.
Is your sales manager looking for ways to leverage and replicate the lessons learned from major proposals? Is the marketing department finding ways to multi-purpose the contents of published articles, speeches, webinars, etc? Is the production department creating standards and delegating tasks down as far as possible? Does your accounting department need to move beyond just reporting the past results to become a resource to the other departments?
Aldonna R. Ambler, CMC, CSP has earned the right to be called THE GROWTH STRATEGIST®. She has won over 2 dozen national and statewide “entrepreneur of the year” awards for the resilient growth of her international businesses across 4 recessions. Her midsized BtoB clients get on…and then stay on…the published lists of the fastest growing privately held companies. She owns and operates a suite of companies that help privately held midsized companies achieving accelerated growth with sustained profitability® through opportunity & resource analysis, 4 approaches to strategic planning, executive advisory services, growth financing, and targeted search. 2013 is Ambler’s 9th year hosting a weekly peer-to-peer-to-peer syndicated on line talk show that features interviews with CEOs/Presidents of midsized companies (typically between $20 and 200 Mil/yr.) sharing success tips about the growth strategy-of-the-week. An archive of over 300 interviews is available at www.GrowthStrategistShow.com. She can be reached toll free at 1-888-Aldonna or at Aldonna@AMBLER.com.
When you accept a position on a corporate board, you become part of the culture, ethics, priorities, logic, metrics, reputation, and the public perception of the corporation. A few of a corporate board’s primary responsibilities include hiring the CEO and providing clear logic and metrics for performance review and compensation. Board members have a fiduciary responsibility to the shareholders. A board has oversight responsibility (stick your nose in) but should not interfere with the actual management (put your fingers in) of the corporation.
Those sentences are clear enough…right? But walking the fine line can be difficult.
A recurring topic of debate/discussion among experienced directors who serve on corporate boards focuses on “Nose and Fingers.”
Imagine you serve on the board of a major corporation that practically created the entire industry. Your company consistently makes money for its shareholders. Your CEO is the son of the Founder, who has been an industry icon for decades. There are risks associated with your industry so customers are asked to sign documents acknowledging that they understand and accept those risks.
To be more specific, you are one of the directors serving on the board of CARNIVAL. After several months following the incident, one of your ships is still leaning in shallow waters off the Italian coast while another ship in your fleet is being towed into an Alabama port after its main engine and sewerage systems have failed. As a board member, you are undoubtedly concerned about the negative media coverage and possibility of law suits. But how far would/could/should you go?
It is very easy for someone from the outside looking in to be a “Monday Morning Quarterback.” Some media personalities were quick to demand answers about why passengers were left on the TRIUMPH for so many days following the loss of the main engine.
Give this some considered thought. When there is an incident, should you (as a board member) speak to the press? Should you support your CEO or “throw him under the proverbial bus?” Should you ask questions about the value of passenger safety compared to corporate profit? Should the board request a presentation from the company’s Chief Risk Officer? Should the Crisis Prevention and Management Plan be reviewed?
If you as a board member, (even though you are very bright and experienced) step in to do the job(s) that executives and managers are supposed to do, why is the company paying those people? Should the board establish a special committee to review recent crises? Should the board convene the executive compensation and performance review committee to revisit its logic and metrics? Should you resign because your suggestions about passenger comfort and safety have been ignored?
Note: Think beyond the negative media coverage. Consider the distinct possibility that the shareholders, board members, executives, and managers have been and are perfectly happy with how things are handled at CARNIVAL.
Aldonna R. Ambler, CMC, CSP has earned the right to be called THE GROWTH STRATEGIST®. She has won over 2 dozen national and statewide “entrepreneur of the year” awards for the resilient growth of her international businesses across 4 recessions. Her midsized BtoB clients get on…and then stay on…the published lists of the fastest growing privately held companies. She owns and operates a suite of companies that help privately held midsized companies achieving accelerated growth with sustained profitability® through opportunity & resource analysis, 4 approaches to strategic planning, executive advisory services, growth financing, and targeted search. 2013 is Ambler’s 9th year hosting a weekly peer-to-peer-to-peer syndicated on line talk show that features interviews with CEOs/Presidents of midsized companies (typically between $20 and 200 Mil/yr.) sharing success tips about the growth strategy-of-the-week. An archive of over 300 interviews is available at www.GrowthStrategistShow.com. She can be reached toll free at 1-888-Aldonna or at Aldonna@AMBLER.com.
Some of the most heated debates I have witnessed between executives within privately held companies have been about whether they need to obtain outside growth financing or should continue to fund growth through reinvestment. The arguments sound pretty much the same whether the outside money would come from private investors or an initial public offering (IPO).
Arguments about if a company needs to attract outside money… and if so, when and how much…typically flow from fear, assumptions, guesses, and jumping to conclusions based on another company’s situation. Arguments based on an absence of information often occur because the President has asked executives to report about the past more than create the future. Of course, that pattern can indicate that the company is ready for a new President or a CEO. At a minimum, the company needs a CFO instead of just a Controller and a CMO instead of just a Marketing Coordinator.
A CMO would answer the questions about market demand, competition, pacing, optimum size, etc. And the CFO would answer the questions about if outside money is needed, if so when and how much. The CFO also answers the questions about the costs and tradeoffs involved with outside money.
When outside funding sources start their due diligence, they ask about market dynamics, growth potential, anticipated use of proceeds, return on investment, etc. Members of the executive team deserve the same information that outside funders need. In fact, without clear answers from detailed scenarios and projections (provided by the CFO and CMO) the concerns of executives are inadvertently conveyed to prospective investors and funding does not happen.
When I am asked questions about the optimum timing for a company to seek growth financing, I find myself immediately asking questions about how well the company’s CFO and CMO create the future and provide answers that replace worry with excitement.
Aldonna R. Ambler, CMC, CSP has earned the right to be called THE GROWTH STRATEGIST®. She has won over 2 dozen national and statewide “entrepreneur of the year” awards for the resilient growth of her international businesses across 4 recessions. Her midsized BtoB clients get on…and then stay on…the published lists of the fastest growing privately held companies. She owns and operates a suite of companies that help privately held midsized companies achieving accelerated growth with sustained profitability® through opportunity & resource analysis, 4 approaches to strategic planning, executive advisory services, growth financing, and targeted search. 2013 is Ambler’s 9th year hosting a weekly peer-to-peer-to-peer syndicated on line talk show that features interviews with CEOs/Presidents of midsized companies (typically between $20 and 200 Mil/yr.) sharing success tips about the growth strategy-of-the-week. An archive of over 300 interviews is available at www.GrowthStrategistShow.com. She can be reached toll free at 1-888-Aldonna or at Aldonna@AMBLER.com.
When asked to site the primary barrier to continued growth, most Presidents of midsized businesses do not say “access to growth financing,” “competition,” or “difficulties keeping up with advances in technology.” As the host of the syndicated weekly peer to peer talk show, The Growth Strategist®, I have now posed that question to over 300 of my guests. The most frequent response, despite the high levels of unemployment, is “difficulty attracting top talent.”
They don’t need people who have been doing the exact same job that is available in their company. The guests emphatically say that they can teach new employees how to do things “their way.” Over and over again, the Presidents say that they want “people who will show up, are bright and want to keep learning.”
As of November, 2012, the US Bureau of Labor Statistics’ JOLT report (JOB OPENINGS and LABOR TURNOVER) said that there were 3.6 million unfilled job openings in the United States. BTW: In 2009, there were 2.2 million unfilled jobs.
So, why do companies say they can’t find people to hire when the unemployment rate remains so high?
One explanation lies in how jobs are posted and resumes are screened. We have become so technically savvy that we may have complicated the situation to our own detriment. Job postings include with so much detail that many great applicants don’t respond because they become convinced they don’t have the prerequisite skills. And when resumes do come in, computer programs sort at such a granular level that “people who would show up, are bright, and want to keep learning” are never called in for an interview.
If your company is struggling with this challenge, read WHY GOOD PEOPLE CAN’T GET JOBS : The Skills Gap and What Companies Can Do About It by Peter Cappelli (Wharton Digital Press, 2012).
Aldonna R. Ambler, CMC, CSP has earned the right to be called THE GROWTH STRATEGIST®. She has won over 2 dozen national and statewide “entrepreneur of the year” awards for the resilient growth of her international businesses across 4 recessions. Her midsized BtoB clients get on…and then stay on…the published lists of the fastest growing privately held companies. She owns and operates a suite of companies that help privately held midsized companies achieving accelerated growth with sustained profitability® through opportunity & resource analysis, 4 approaches to strategic planning, executive advisory services, growth financing, and targeted search. 2013 is Ambler’s 9th year hosting a weekly peer-to-peer-to-peer syndicated on line talk show that features interviews with CEOs/Presidents of midsized companies (typically between $20 and 200 Mil/yr.) sharing success tips about the growth strategy-of-the-week. An archive of over 300 interviews is available at www.GrowthStrategistShow.com. She can be reached toll free at 1-888-Aldonna or at Aldonna@AMBLER.com.
Reflecting on year end strategy sessions, I recall reminding several clients that the base of your competitive advantage comes in the form of capabilities that your customers do not have but do need in order to handle something that is important to your customers.
Because our clients have long been accomplished accountants, electrical wholesalers, architects, programmers, facility managers, association executives etc. several somehow now take their expertise for granted. So many tasks come easy to them. The thing is, just because a task seems easy to you doesn’t mean that it is easy for everyone else; and certainly doesn’t mean that it is not important or valuable.
When there isn’t an appreciation of the capabilities of one’s own business, cues are missed during strategy formulation.
Maybe your competitive advantage is your ability to both train and learn from new employees. Could your competitive advantage be the speed, consistency, accuracy and ease that you deliver? Or, could your competitive advantage be that your team doesn’t make customers feel stupid?
We probably all know CPA firms that file extensions more than others, don’t explain their logic, or talk down to customers. Having CPAs on staff who can explain Dodd Frank and its implications to customers in a way that doesn’t make customers feel stupid is a stronger competitive position for a CPA firm than having one of the authors of Dodd Frank legislation on staff. Condescension is not a great choice for competitive advantage.
One way to reduce the risk of condescending attitudes is to help your employees gain appreciation for what your customers know how to do that you and your team don’t know how to do…and vice versa. Mutual appreciation of your customers’ and your capabilities pays off.
Aldonna R. Ambler, CMC, CSP has earned the right to be called THE GROWTH STRATEGIST®. She has won over 2 dozen national and statewide “entrepreneur of the year” awards for the resilient growth of her international businesses across 4 recessions. Her midsized BtoB clients get on…and then stay on…the published lists of the fastest growing privately held companies. She owns and operates a suite of companies that help privately held midsized companies achieving accelerated growth with sustained profitability® through opportunity & resource analysis, 4 approaches to strategic planning, executive advisory services, growth financing, and targeted search. 2013 is Ambler’s 9th year hosting a weekly peer-to-peer-to-peer syndicated on line talk show that features interviews with CEOs/Presidents of midsized companies (typically between $20 and 200 Mil/yr.) sharing success tips about the growth strategy-of-the-week. An archive of over 300 interviews is available at www.GrowthStrategistShow.com. She can be reached toll free at 1-888-Aldonna or at Aldonna@AMBLER.com.
Look for…watch for … a complex client situation that your team somehow figured out!
The prospect had a ton of excuses but… somehow …one of your rainmakers addressed each and every excuse and objection.
Or a client was indecisive. One minute the client’s Baby Boomer executives seemed like they were energized and enthusiastic leaders. The next minute, those same people seemed tired and ready to retire. But …somehow …your account manager found ways to surface clarity and got things moving again.
Or a department head in the client company had become frustrated because younger employees “only want to do what they want to do. It seems like the Gen X, Gen Y, and Millennials aren’t motivated to learn, take responsibility or be promoted. Folks used to want to become partners/shareholders” but today, the client’s department head feels the weight of the world on his/her shoulders. He/she is under-staffed, underpaid, taken for granted, and is starting to feel resentful and angry. And yet… somehow… your project manager finds ways to keep things going, ease the pain, and represent your business well.
Whether it is your rainmakers, your account managers, or your project managers or a combination of them… if you can think of situations like this, your company has a competitive advantage in today’s economy.
As soon as your team solves a client problem that your competitors couldn’t, ask your college interns to do some research to find/identify some more organizations with similar situations as were involved in the problem your team just resolved. We are all so completely naked when it comes to the Internet. If you are looking for a company with a Baby Boomer Owner with one foot in and the other foot out the door, an intern could quickly find five examples. If you are looking for a company with a knowledge/responsibility/ambition gap between the generations, an intern could easily locate five examples. And, if you are looking for indecisive executives…well…they all have cause to be indecisive these days.
Replicate your successes to speed up sales results. Sometimes your competitive advantage doesn’t come in the form of geographic territory, product packaging, or advanced technology…it comes in the form of behavior. Today’s challenges require clear thinking, can do attitudes, and follow through.
If even a few people on your team have those attribute, replicate that…for the benefit of your clients…and your own business.
Aldonna R. Ambler, CMC, CSP has earned the right to be called THE GROWTH STRATEGIST®. She has won over 2 dozen national and statewide “entrepreneur of the year” awards for the resilient growth of her international businesses across 4 recessions. Her midsized BtoB clients get on…and then stay on…the published lists of the fastest growing privately held companies. She owns and operates a suite of companies that help privately held midsized companies achieving accelerated growth with sustained profitability® through opportunity & resource analysis, 4 approaches to strategic planning, executive advisory services, growth financing, and targeted search. 2013 is Ambler’s 9th year hosting a weekly peer-to-peer-to-peer syndicated on line talk show that features interviews with CEOs/Presidents of midsized companies (typically between $20 and 200 Mil/yr.) sharing success tips about the growth strategy-of-the-week. An archive of over 300 interviews is available at www.GrowthStrategistShow.com. She can be reached toll free at 1-888-Aldonna or at Aldonna@AMBLER.com.
Congratulations. You utilize a range of best practice techniques to find and select the right person for a key position. You use instruments like the Predictive Index® or Caliper®. You use a combination of team and individual interviews that includes the Top Grading® method. You have a highly experienced HR department or professional recruiters. You utilize Accolo® or other cloud sourcing. Your job descriptions are clear. The performance metrics are spelled out. Coaching and/or mentoring are in place. A meeting rhythm is consistently followed.
But, you STILL end up with a key executive who works too slowly, avoids making important decisions, or talks a good game but doesn’t deliver.
Despite the relatively high rates of unemployment around the country we are STILL seeing executives of midsized companies accepting mediocre performance, being suckers for potential, waiting too long to let someone go. In every situation, the executives involved KNEW early on that the newly hired team member was the wrong choice. He/she didn’t fit the culture. He/she wasn’t trying hard enough. He/she didn’t seem to understand the urgency of the situation. And yet the executives didn’t speak up, express their concerns, or exercise provisions in their employment contracts (like probationary periods).
Yes, it is expensive to recruit, screen, select and train an executive.
But it is far more expensive to retain “the wrong person in the wrong seat on the wrong bus.”
Not only is the performance of the company compromised, tolerating poor performance from one key role is a disincentive to the other members of the team. Plus continued tolerance of mediocrity reduces the credibility of the top executive.
Excuse my ranting here…I do understand giving folks a chance…but a great deal is riding on the FIT…the effort…the pacing…the performance…the results.
Ask yourself IF and WHY you STILL have “C” level performers on your executive team at a time when so many very capable people are available.
Aldonna R. Ambler, CMC, CSP has earned the right to be called THE GROWTH STRATEGIST®. She has won over 2 dozen national and statewide “entrepreneur of the year” awards for the resilient growth of her international businesses across 4 recessions. Her midsized BtoB clients get on…and then stay on…the published lists of the fastest growing privately held companies. She owns and operates a suite of companies that help privately held midsized companies achieving accelerated growth with sustained profitability® through opportunity & resource analysis, 4 approaches to strategic planning, executive advisory services, growth financing, and targeted search. 2013 is Ambler’s 9th year hosting a weekly peer-to-peer-to-peer syndicated on line talk show that features interviews with CEOs/Presidents of midsized companies (typically between $20 and 200 Mil/yr.) sharing success tips about the growth strategy-of-the-week. An archive of over 300 interviews is available at www.GrowthStrategistShow.com. She can be reached toll free at 1-888-Aldonna or at Aldonna@AMBLER.com.
Often successful entrepreneurs become interested in investing in other companies. Not just the stock market. They are curious about the role of private investor or angel investor. What would it be like to be a member of the board of another company and have some “skin in the game” but NOT have to run the business on a day-to-day basis? The process of screening potential investments, learning new roles, doing due diligence, and taking some chances is very enlightening for entrepreneurs. Becoming an outside investor is a career change for some. You aren’t just evaluating the companies, you learn about yourself, your security/risk ratio, your skills to influence decisions, etc. Many never realized the complexities involves with board service. Some, who thought they knew a great deal, start to recognize the limitations of their experience having only led one midsized company.
Here’s an excerpt from an email I recently sent to a client who is venturing into the world of “private investor.” See if any of the questions I posed for him resonate for you:
Apparently, you can see that XYZ is well positioned for growth, is in a rapidly expanding industry, and their products/services provide superior value. Your emails suggest that your primary questions, at this point, are more about how an investment in XYZ should be structured.
Aldonna R. Ambler, CMC, CSP has earned the right to be called THE GROWTH STRATEGIST®. She has won over 2 dozen national and statewide “entrepreneur of the year” awards for the resilient growth of her international businesses across 4 recessions. Her midsized BtoB clients get on…and then stay on…the published lists of the fastest growing privately held companies. She owns and operates a suite of companies that help privately held midsized companies achieving accelerated growth with sustained profitability® through opportunity & resource analysis, 4 approaches to strategic planning, executive advisory services, growth financing, and targeted search. 2013 is Ambler’s 9th year hosting a weekly peer-to-peer-to-peer syndicated on line talk show that features interviews with CEOs/Presidents of midsized companies (typically between $20 and 200 Mil/yr.) sharing success tips about the growth strategy-of-the-week. An archive of over 300 interviews is available at www.GrowthStrategistShow.com. She can be reached toll free at 1-888-Aldonna or at Aldonna@AMBLER.com.