October 15, 2009 - Are You Running On Fumes?

Main Idea

Have you ever watched an Olympic runner who just ran out of gas on the last turn? Are you out of gas? Is your company out of gas? How long can you keep pressure going?

Expansion of Idea

Business is a nonstop adrenaline rush in the current economy. Life comes at you so fast that you frequently are not sure what the next step is. This is when a lot of people and systems break down. They start running at full speed and they can keep up for awhile. Then, they struggle to keep up. They become like the dog in the first Vacation movie. (For those of you who don’t know, the dog was accidentally tied up to the rear bumper and then Chevy Chase took off on the highway.) Most of us are not prepared for the long haul. We do not have sustainability built into our lives and our businesses.

This can impact each of us in different ways. Some of us are just working too much and we cannot keep up the pace. Others have situations where someone in our organization is so critical that we do not have a replacement for them. If that person leaves, we are in trouble. Others of us have systems that worked very well when our organizations were smaller, but as we grew, we outgrew the systems.

We need balance in our lives and our systems. This does not mean we have to go slow. My son, Mark, recently ran in the Columbia, Missouri marathon. (Yes, he is nuts.) His time was right around 10 minutes per mile. I thought that was pretty good. Then, we checked how fast a world class marathoner can run. The time is approximately 4 minutes per mile; almost a world record for a one-mile race. Obviously, the marathoners figured out how to sustain a very quick pace for 26 miles. They know what carbs to eat and what to drink. They figured out the systems to keep their bodies going at optimal conditions for 26 miles. Do you know what is needed for you to sustain your pace? When was the last time you refueled your engine?

Start by Asking Yourself these Questions:

1. Am I keeping a sustainable pace?

2. Are my team members keeping a sustainable pace?

3. Is the pace fast enough to win the race?

4. Are there systems that are vulnerable to breaking down?

5. Do I have backups for all key processes and people?

October 8, 2009 - Are You Keeping All Your Commitments?

Main Idea

When was the last time you told somebody you would do something and then when the time came, you physically could not fulfill the commitment?  How often do you disappoint your spouse, your kids, your boss, or your employees? 

Expansion of Idea

We all disappoint some people close to us at different times.  These people can be employees or coworkers or customers at work.  It can be friends and family members.  It can be someone at church or at a nonprofit organization that you are a part of.  Disappointment generally is a result of our failure to do something that we agreed to do.  This agreement may be explicit or it may be implied.  An explicit commitment is one where we have clearly said what we will do, such as saying that we will send a report to someone by a certain date.  An implicit commitment is one where by not saying we disagree, we are actually committing to do something.  An example would be when our boss tells us to do a certain job, tells us when he needs it done by and then leaves.  If we do not say anything, we have agreed to do it. 

Most of us do not have very good systems to monitor our commitments.  Our systems generally consist of an internal voice that says we can do something or not.  We may not have or be able to afford a personal assistant to keep us organized.  But we can at least agree to spend 30 minutes a week looking at the upcoming week and month to determine where there are going to be problems.  The first advantage of doing this is that we stop making future commitments during the problem times.  The second advantage is that we can sometimes move commitments to free up some time or we can find someone to fill in for us.  And if we are going to have to disappoint someone, then we can tell them in advance what happened.  It minimizes the damage from broken promises.  What would happen to your business if you and all of your employees fulfilled all of your commitments to each other and to your customers?    

Start by Asking Yourself these Questions:

1. Clarify and verbalize your implicit commitments.

2. Evaluate your outstanding commitments.

3. If you cannot accomplish your commitments, discuss it with the other party as soon as possible.

4. Slow down the commitment process.  Make sure that your “YESSES” Mean YES and your “NOES” mean NO.

5. Set up systems to evaluate open commitments.  Find someone to help you evaluate your commitments.

September 30, 2009 - Is Short Term or Long Term More Important?

Main Idea

What were you thinking when you got engaged?  Was the time period the next 60 days or did you think about the rest of your life?  When you started your current job or started your business, was your time horizon two weeks or ten years? 

Expansion of Idea

The current economy dictates that we watch the business and legal environment very carefully.  We have to manage carefully cash and debt and receivables and a lot of different things that are very short term focused.  The main problem is that we can be consumed with the tyranny of the urgent.  We lose sight of where we are going.  Or we lose sight of our employees or customers.  We have to balance our short-term focus with a long-term view. 

Last fall there were a number of fashion shops that cut their prices and probably forever destroyed their brand.  Yet, Giorgio Armani completed a brand new store on Fifth Avenue in Manhattan.  This store probably cost $40,000,000 to complete on one of the most expensive retail locations in the world.  This was also in a town that was decimated by the stock market crash.  Mr. Armani might be completely nuts, but he was quoted “An entrepreneur shows his true colors in a period of crisis, not in a period when everybody is having success.  Understand that the investments that I made in this store I will probably not get back for twenty to twenty-five years.”    He was 74 at the time.  This might be an extremely long-term view. 

How many companies cut employees and then training budgets when faced with cash flow problems.  Employees are expected to handle more without the right training.  Major companies cut research and development in these times.  What they really have cut is their future.  With all of the upheaval in business, you are determining your future right now.

Start by Asking Yourself these Questions:

1. What is critical for you to do now to insure your future?

2. Do you have a plan for investing in the future?

3. Have you cut service levels? 

4. Should you add service?

September 23, 2009 - Are You Serving Your Employees?

Main Idea

How far should a serving leader go to please their employees? What do your employees want? When was the last time you asked them if their needs were being met? Happy employees are more productive, profitable, employees.

Expansion of Idea

The majority of leaders in companies feel like the employees should be serving the leader’s needs. After all, you’re the boss, right? Well, it’s been proven that companies that align the needs of their employees with the company’s needs have a better retention rate of both employees and customers than those companies that do not. Southwest Airlines has shown this continually by putting their workers first. Employees of the airline are given freedom to work in groups without supervision, and their personal uniqueness and sense of humor is highly valued. Because of this, the airline has been profitable every year since 1972. They have also received numerous awards on the quality of their customer service. Happy employees make happy customers. By focusing on the employees and their needs, the company has helped cement customer loyalty. 

What do your people want? Every person, regardless of position, wants to be valued and to have their voice heard. Maybe a certain strength, passion, or talent is being left untapped. There could be many simple ways to meet your employee’s needs that could improve your company culture, but you won’t know for sure how well you are doing so unless you ask them.

Start by Asking Yourself these Questions:

1. How often do you ask if employee’s needs are being met?

2. Do your employees have the tools they need to do the job?

3. Do your employees have the training they need to do the job?

September 16, 2009 - Are You Serving Your Business?

Main Idea

What is the purpose of a leader?  When was the last time you saw a leader really serve his followers and organization?  Or do the followers exist to serve the leader?

Expansion of Idea

I was watching a Fox News program the other day regarding the situation in Honduras.  They were interviewing the interim president about his role.  The previous president was deposed by their Supreme Court and military because he was trying to become like Chavez in Venezuela.  He was going to be president for life.  This went against the Honduras constitution and therefore he was forcibly kicked out of the country.  They have a rule that the president can only serve for one term because they know that there is a tendency to embrace the power.  The key point here is that the leader should be there to serve the country instead of the country there to serve him. 

The same is true for business.  Have you ever worked for someone who focused on helping you with your job and your life?  You probably worked harder, were more effective and were much happier with your life.  Everyone wins.  The problem is that life gets in the way and leaders have a hard time staying focused on helping their coworkers.  It takes a constant reminder about what we are supposed to be doing and why are we doing that.  This is also true about our responsibilities to our coworkers and bosses.  We can be servant leaders to our bosses and to our fellow workers.  This is not about just helping those who report to us.  This is a mindset for how to live our lives.  Remember “Power Corrupts.  Absolute Power Corrupts Absolutely.” 

Start by Asking Yourself One Question:

ARE YOU A SERVANT LEADER OR A SELF-SERVING LEADER?

September 9, 2009 - What are Your Performance Standards?

Main Idea

Do you do the same thing every time you perform a business function?  Does it help?  Does it hurt?  Do your employees and associates know what to do when a customer shows up at your door or on the phone?  Are your customers treated the same every time?  Does it matter who the customer is?

Expansion of Idea

I have been reading a book about Bill Walsh who was the legendary coach of the San Francisco 49’ers.  He used to get upset if a wide receiver ran a route at 12 feet and 6 inches instead of at precisely 12 feet.  The reason is that their whole offense was built on precision and timing.  That was one of the key ingredients for success.  Most of us would look at the difference of 6 inches in a passing route and we would not think it is a big deal.  But for Bill Walsh, it was the difference between being Super Bowl champions and being a normal football team.  He had performance standards for all aspects of the business, including respect for others.   He created these standards so that teamwork could be elevated to the highest level. 

Companies that operate at extremely high levels have some version of these types of standards.  They have thought through the parts of their businesses that are critical to the business.  These standards are the cornerstone of teamwork, customer service, and interpersonal communication.  All of our businesses could implement these to solidify our values and our systems. 

Everyone in my office knows the standards for answering my office phones or responding to clients.  Everyone in my office knows the standards for dealing with each other and with customers.  We have standards for completing tax returns and financial statements.  All of these are critical in timely completion of duties, quality control, and helping our clients achieve their goals. 

If you do have standards in place, it is a good time to critically evaluate the standards.  If you do not have any in place, then this is a great area to pull all of your team together and focus on creating teamwork and raising your business.

Start by Asking Yourself these Questions:

1. Are there any inconsistencies in our operations?

2. Do people sometimes not know what to do?

3. Do you have the teamwork that you are looking for?

4. Document the areas where you can standardize the performance. 

September 2, 2009 - What Are Your Priorities?

Main Idea

Do you have a clear idea of what you need to get done every day to succeed?  What do you have to focus on?  What are the critical areas that you need to work on but don’t have the time?  Have you gotten away from your core responsibilities because life has gotten in the way?

Expansion of Idea

My first job in high school was working in an Italian restaurant named “Luigi’s”.  There were four locations and they had the best pizza.  (Yes, it was thin crust.)  This was a normal restaurant that even had a huge banquet facility.  It was always busy, especially on Friday and Saturday.  The owner never really associated himself with any part of the operations because he had people to handle those things.  I remember a few times such as New Year’s Eve where the kitchen would get really backed up.  On those rare occasions when things were really a mess, he would come down from the office and help the pizza line.  I always thought it was strange that would be his focus. In reality, it made perfect sense.  That was his signature dish.  He could survive if the steaks were bad.  He could survive if the lasagna was bad.  He could not survive if the pizza quality and times were not outstanding.  He always checked with Willie the Pizza Guy whenever he came into the building.  His priorities always reverted to the pizza line.  He had a great business for many years because of the laser like focus on his number one priority.  (Ultimately, he failed because he got on the wrong side of the IRS and the Department of Labor.  Not a good combination.) 

Most of us get sidetracked by life and we tend to lose sight of what is important in our businesses.  This leads to a gradual deterioration in the business.  What do you need to do to get those back in your consciousness? 

Start by Asking Yourself these Questions:

1. What are my priorities in business?

2. Are you focused on the priorities?

3. What do you need to do differently today to get back in alignment?

August 26, 20090 - Do You Have Enough Resources?

Main Idea

Who wonders if they have enough resources to survive the current economy?  Where do you get new leads for business?  How do you fix some of the problems in your businesses?  Do you look outside your business for the solutions?

Expansion of Idea

Do you remember the TV show “MacGyver”?  If you have never seen it, MacGyver gets stuck in life and death situations in every episode.  There is no possible way of getting out of the problem.  You or I would die.  But MacGyver takes a look at the situation and sees what he does have.  He then saves the day with what he does have.  He does not worry about his lack of resources. 

I was reminded of this recently and I thought it would apply to us.  All of us have different issues in our workplaces.  Our old models may not work today.  Or we may not have enough resources to try to get new customers.  Or we may not know how to find the new customers.  But we do have:

• Our existing customers and employees. 

• Our experience. 

• Friends and family members to bounce ideas off. 

• Knowledge of the business.

• Potential customers that are more open to new ways

• American ingenuity.  (Throw in apple pie, mom and Chevrolet.

We have been incredibly blessed and we need to focus on the blessings and not on the shortfalls.  

 “If you can keep your wits about you while all others are losing theirs, and blaming you. . . . The world will be yours and everything in it, what's more, you'll be a man, my son.”  By Rudyard Kipling

Start by Asking Yourself these Questions:

1. What do you have that is working?

2. What did you do when you were getting started in business that you are no longer doing?

3. What is the number one thing you should be working on that you are not working on?

August 12, 2009 - What Energizes You?

Main Idea

When was the last time you jumped out of bed on a Monday morning right when the alarm clock went off?  Were you excited to go to work?  Why?  Or when was the last time that you were excited to go home so you could attend your son’s monthly cub scout meeting?

Expansion of Idea

Most of us are not brimming with excitement to go to work or attend a child’s function that we know will be boring.  Why is that?  A lot has to do with our energy levels.  We are running so hard and we are so drained and we know that we do not have enough time to get everything done.  And knowing that we can’t get everything done drains us further.  What can we do? 

All of us have to find something that re-energizes us.  For me, the best thing I do all year is go to a conference called the Leadership Summit.  It does the following:

• I take a break from work and spend it with clients, friends and family

• I learn about leadership and management topics that can help me in all aspects of my life.

• I get my priorities back in line.  They can get pretty far from where I want them to be.

This is not necessarily the right thing for you.  The point is everyone needs to find out what is right for them.  And we all need something like this because we are running so hard.  Most small business owners, managers, and employees would say that they do not have time for something like this.  However, if you can become a better leader or manager, you might be able to avoid mishandling an employee situation or a customer situation.  The time savings on maintaining an employee can be huge.  And if you can reenergize yourself, then you effectively re-energize your team members, which then reenergize your customers and your business.  As leaders, everyone else gets their energy from you.  If your energy is zero, guess what the energy level is around you.  Who wants to do business with a company with zero energy????

If you still think this is a waste, think about the last really bad decision that you made.  I will bet that you were worn out and you agreed to something that if you were in a strong energy state you would have said no to.  How much time did that decision cost you?                       

Start by Asking Yourself these Questions:

1. What is my energy level?

2. What am I doing now to re-energize myself?

3. What can I schedule in the future to help myself?

4. If you think Tim was thinking of you when he wrote this send him an e-mail!

August 5, 2009 - Have You Asked the Extra Question?

Main Idea

Have you ever played Monopoly?  Have you ever spent your last $400 on a property and then on the next turn another player puts up hotels in an area that you are going to go through?  Would you have wiped out your cash if you knew that they were going to do that?

Expansion of Idea

Information is power.  Making informed decisions is the key to helping our businesses move forward.  We can never know the future.  But we can try to know the facts as they exist now.  The main question to consider is how are you making decisions?  What information is being used by you in adjusting your pricing, evaluating employees, or deciding on business strategy?  How accurate is it?  Is it the best source for making the decisions? 

More information will continue to come out about the Bernie Madoff Ponzi scheme.  But already we have seen some investors who chose not to invest with him and others who chose to put their life savings with him.  What is the difference between the two?   There are sophisticated investors who didn’t invest and sophisticated investors who did.  The key difference between the two is probably the extra question or extra step in evaluating the information.  The investors who did not invest probably learned enough to realize that there were no controls on Madoff.  They decided that if they could not be sure of the information, they did not want to make the investment.  That saved them a lot of time, money and aggravation. 

The current business environment requires that we reevaluate how we make our decisions and also what information is being used.  It is critical that we go back to basics and look at the information to make sure it is accurate, appropriate and timely.

Areas to Start:

1. Make a list of your key pieces of information.

2. Test it and make sure it is accurate

3. Brainstorm with your team to see if it is measuring what you need.

July 29, 2009 - Do You Have a Client Evaluation Plan?

Main Idea

Do you have clients who drag down your whole organization?  When those clients call, does everyone run for cover?  After they leave your business, is there one big gripe session?

Expansion of Idea

Several years ago, we started evaluating our clients on an ABCD basis.  A clients are generally our more profitable clients who we enjoy working with.  They tend to be bigger accounts because we are doing more with them.  B clients are solid bread and butter accounts who are good to work with but we are not quite as involved with them as with the A clients.  C clients are those who don’t always pay attention to our advice, or may get a little behind in their bills and are not always a delight to work with.  D clients are ones who suck the life out of us or, alternatively, we are not the best fit and our services don’t line up with what they really need.  We have made it a policy to get rid of the D clients as soon as practical.  We have done some of this every year. 

Even with the economy in the tank, in the past year I have resigned from several accounts.  The reason that it still makes sense is that it is consistent with my stated goal of providing value to our clients.  I am only compensated if my firm adds value to our clients.  When we stop adding value, then we need to move on.  That frees up resources so that we can improve our services to our A or B clients.  We also can use that time to help our C clients become B clients.  (Of course, if they choose not to improve, then they will be next year’s D clients.)  Our real goal is to keep helping our clients improve their businesses.  Small minorities of clients can actually do damage to our other client relationships.  That is something that I cannot afford to let happen. 

Areas to Start:

1. List your clients either individually or by type or by region. 

2. Identify the parameters of ABC & D clients

3. Assign your clients a grade

4. Fire the D clients

5. Work on a plan to help C clients become B clients and for B clients to become A clients

July 23, 2009 - Is Satisfactory Customer Service Actually Satisfactory?

Main Idea

Do you like to go to businesses where everyone just does their job?  Everyone has been in places where the employees are competent and the service is okay.  How do you feel when everything was satisfactory? 

Expansion of Idea

Satisfactory is definitely better than unsatisfactory.  But if we want to grow our businesses, satisfactory should truly be viewed as an enemy.  We need to take the extra step in serving our customers. 

This past week, I was helping my son, Mark, with a condo that he is remodeling.  I went to Lowe’s for him and purchased a refrigerator on Monday.  They were able to look up his account because he had purchased a couple of other appliances there.  The Lowe’s employee remembered Mark’s situation because Mark was under a very tight timeline to get this condo fixed up.  I asked if they could deliver it on Tuesday morning because we had a plumber coming in the afternoon.  The guy said unfortunately they could not deliver it until the afternoon.  The next morning, I showed up at Mark’s condo at 7:30 am and there was the Lowe’s delivery guy knocking on the door.  I told him I thought he was coming in the afternoon.  He said that the sales guy had asked if they could get this delivered first thing to help Mark out to make the whole project go smoother.  This blew me away.  I tried to give the Lowe’s delivery guy a tip for going out of his way and he told me that they were not allowed to accept tips.  I had quite the opposite experience with Home Depot when we were finishing our basement.  (That is a story for another week.)  The employees at Lowe’s took an extra step which makes a huge difference in customer loyalty.  I would much rather shop at Lowe’s than Home Depot.  And the only difference is a couple of extra steps that two employees took that has no impact on their pay but has a huge impact on customer perception of value.

Areas to Start:

1. Look at your customer service.  Identify one thing that could be added that might add value.

2. Focus on listening to the customers. 

3. Celebrate the employees that have taken the extra step.  New business is not far behind.

July 16, 2009 - Are You Afraid to Have Honest Conversations?

Main Idea

Do you like asking uncomfortable questions?  Are you afraid of telling someone that they may be wrong?  What was your reaction the last time someone who worked with you asked you a potentially embarrassing question?

Expansion of Idea

I was reading an article last night and a phrase that was used really stuck with me.  The phrase was “a culture of courageous conversations.”  Most of us do not do well with criticism or suggestions on how to improve.  Yet in the current environment, we have to constantly look for ways to improve.  A critical way of doing that is to create a culture where people can speak and not be afraid of repercussions.  How much business are we losing because someone identified a problem or a better way of doing things but was afraid of telling a boss or coworker? 

Sometimes it can be difficult to confront an employee who is doing something wrong. Or maybe you do not want to stick your neck out with an off the wall idea that might be a much better way of doing something.  Bigger companies have huge political problems with everyone trying to not offend anyone higher than them.  But this affects smaller companies in much the same way.  You may like your coworker, but the fact that they are chewing gum when they talk to customers creates problems with customers.  Creating a culture of courageous conversations can overcome a lot of performance issues because they can be identified and fixed.  People can learn to help others with everyone knowing that we are just trying to create a great organization.

Areas to Start:

1. Call a team meeting and see if they feel they can talk openly about problems. 

2. Apologize for your handling of situations in the past and ask for ways to improve the handling of problems in the future. 

3. Focus strictly on the culture.  The problem solving will come later.  Look for systems that can help the identification of problems and suggestions.

July 8, 2009 - Do You Have Enough Cash?

Main Idea

What is the cause of business failures?  How can a business that is losing money be worth a lot?  What is the number one reason why a business shuts its doors?

Expansion of Idea

The current economy has created some enormous problems for a variety of people.  Small business owners, charities, large businesses, governments, and a lot of families are having trouble with cash.  For a number of years, cash has been taken for granted.  The economy has been strong and people have not thought about or worried about their cash flow.  But it isn’t lack of sales that force a company to close its doors.  It is lack of cash.  Businesses can be profitable as they file for bankruptcy.  Businesses can be losing money and be sold for outrageous sums.  What is the difference? 

CASH FLOW!!!!!! 

The new owners of Anheuser Busch have completely decimated the loyalty of their suppliers by forcing them to accept 90-day payment terms.  This will put some of them out of business.  And I am sure they were profitable. 

Cash flow is critical for organizations to survive.  Whether you are a leader or a team member, you need to do what you can to help your company’s cash flow.  In the past it may have made sense to buy a new copier.  Now it may make sense to lease the copier.  Yes, it will cost you a little more, but you are preserving cash.  New clients are worthless if they are not going to pay.  If you are in sales, you need to be aware of the warning signs for customers.  We have to stay focused on cash flow and planning for possibilities.  If you or your company does not have a plan, then it is time to start.  This is not management’s problem.  This is everyone’s problem.

Areas to Start:

1. Develop a cash flow plan.

2. Evaluate customers and their payment patterns.

3. Brainstorm alternative sources of cash if needed.

4. Carefully manage bank loans and lines of credit.

July 1, 2009 - Happy Mutual Interdependence Day!!

Main Idea

Is Independence Day a good idea?  Do you truly want to be completely independent and not rely on anyone else?  Can you have a business when you are the sales person, the production person, the bookkeeper, the janitor and the customer service person?  What happens when you are sick?

Expansion of Idea

On July 4th, we celebrate our nation’s independence.  That is a great thing.  Most of us are proud to be Americans.  We are not perfect but we try to do the right thing.  It is good that we have our freedom to worship God in the manner that we would like.  We have freedom of speech.  We have a truly great theoretical system.  (The actual system is less than perfect, but no system is perfect.)  But independence should not be the end goal of our society. 

Five years ago, through a series of coincidences, mismanagement on my part and just plain bad timing, I was left at my office with one employee (Stacey) and she primarily worked during tax season.  This left a two to three-month period where I was the only one in the office.  I was independent, but for some reason I felt more tied down than at any other time being in business for myself.  I was in control but it was hard getting work done.  It wasn’t much fun.  And I did not have a business.  Instead I had a job.  I now have a much better team that helps me service clients.  Or is it that I help them service clients?  I am dependent on them, but they are dependent on me. 

Mutual interdependence is where we should actually aim.  We are social creatures and we need social interaction.  Businesses do not need 20 isolated employees but a finely tuned team of 20 people that can work together to serve their customers.  We can accomplish so much more when we use our individual gifts and abilities in conjunction with our coworkers to really help our customers or society.  HAPPY MUTUAL INTERDEPENDENCE DAY!!!! 

Areas to Look At

1. Make a list of who is dependent on you

2. Make a list of who you are dependent on.

3. Make notes on how you can strengthen those relationships and the systems

4. Read Stephen Covey’s 7 Habits of Highly Effective People, especially the 4th, 5th, and 6th habits. 

June 24, 2009 - Are Your Systems Simple?

Main Idea

How complicated is your life?  Why is that?  How complicated is your business?  Does it run smoothly?  Do you have a 5 hour process to determine a customer’s satisfaction when a 5 minute phone call will do it easier and quicker?

Expansion of Idea

My kids introduced me to the TV show “The Big Bang Theory”.  If you have not watched it, the story line is about two genius-nerds and their two friends who live next to a beautiful young waitress.  It is pretty funny.  One episode is about the four intelligent genius-nerds redesigning a bookshelf that needed to be assembled.  They were going to spend 30-40 man-hours each to assemble this bookshelf that the waitress ends up assembling in a couple of hours.  The problem for them is that they were looking to improve something which is good, but that can also be an impediment to getting something done, which is bad. 

The best solutions to problems, customer service, employee relationships and to life in general are the simplest system possible.  Our businesses and the systems are living, breathing ever-changing processes that mutate periodically.  We add little pieces to systems to fix something.  We keep doing that over years and soon, we are pretty far from where we started.  Periodically, we need to reexamine our systems and see how we can simplify them.  This will help simplify our lives.  And the best part is that we will probably improve our customer service and employee retention because we can focus on the truly important issues.

Areas to Start:

1. Ask your team what systems are complicated or are breaking down a lot.

2. Ask your spouse what systems are complicated or are breaking down a lot.

3. Determine what you can eliminate.

4. Brainstorm how to simplify them.

June 17, 2009 - Are You Investing in the Right Places?

Main Idea

What do you think of when you hear the word investment?  Is it good or bad or ugly?  Do you associate the word with stocks, bonds, houses, businesses and retirement plans? Do you ever associate it with people? 

Expansion of Idea

When we think of investments we normally think of our savings, our house and our retirement plans.  But I would argue that those are minor compared to the true treasures in our lives.  What happens when you invest in yourself?  Or what happens when you invest in an employee or a relationship with your future spouse?  How much time do we invest in our kids?  There is no immediate payback and our whole goal is to get them off the payroll when they graduate from college.  But the real benefit is the joy we get when they grow up, serve others and become self sufficient. 

We make those kinds of long-term investments and we never look back.  We go to college to prepare us for the real world.  (I know I am stepping out on an edge here.)  The point is that in our personal lives we make very long-term investments in people but that mindset does not carry over to our businesses and our professional lives.  The current view is frequently, “What have you done for me lately?”

Everyone is so impatient and then we wonder why there is no customer or employee loyalty.  What would happen if we changed our mindset a little and started to invest in ourselves, our team members, our customer relationships and other key business partners?  How can we add value to that relationship?  If we can develop the people around us, including ourselves, we will be much more effective, we will have more fun, and we will probably have more time.  By developing close relationships, we also improve our odds for success.  As the ancient King Solomon said, “A cord of three strands is not quickly broken.” 

Areas to Start:

1. Take a few minutes and think about someone you could help or would like to improve your relationship.

2. Schedule some time and go do it.

3. Go do it again and make it part of your daily or weekly lives.

June 10, 2009 - Do You Have an Action Plan?

Main Idea

Does your organization have a business plan?  Is it something your banker required or you put together when you started the company?  Or is it a living, breathing action plan that helps guide you and your decisions?  Has it changed in the recent economy? How prepared were you for the recession?

Expansion of Idea

Most companies draft a business plan when they start or when they are required to by their bank.  They are a laborious chore that only an obsessive- compulsive, anal accountant could love.  As a result, most people miss the big benefit of the plan.  It is an outline of what you are going to do.  It summarizes your reason for being, your goals, your operations and how you will determine if you get there.  Having the plan keeps everyone focused on the big picture and how their job fits in.  By having a plan, everyone can see what is needed to achieve the organizational goals. 

A business plan generally consists of the following plans: strategic, operational, management, employee, marketing, financial, technology and production plan.  Obviously, each business is different and some of these pieces are not as important as others and there are some additional pieces in some organizations.  A solid business plan contains reachable goals and the steps to get there. It should be adjusted once a year to include new goals. Your company’s plan must be based on core values and your mission statement. Use the vision and enthusiasm you had when starting your company to prepare your business and employees to get it there.

The most important thing to do once your plan is in place is to make it happen. Just do something. The government had a plan to turn around the economy. Whether you agree or disagree with the choices, they are following through. Your points of action may or may not always work, but it is important to continue to reach for the goals. Envision what your company will become in 5 or 10 years and set the stage appropriately for that vision to become reality. The business plan helps you get started on the right direction and periodically redirects you back to the right direction. 

Areas to Start:

1. Revisit your old, dusty business plan.

2. Evaluate what part is working.

3. Brainstorm on what isn’t working.

4. Convert the formal business plan into an action plan with specific, reachable goals.

June 3, 2009 - Do You WOW Your Customers?

Main Idea

When’s the last time you visited a restaurant or store and left with a sensation of WOW? Are your interactions okay/boring/satisfying/forgettable?  What do your customers think of their interactions with you?  If you have not gotten a referral in a while, then your customers have not experienced a “WOW”.

Expansion of Idea

What is “WOW”?  Why is it important?  You can define WOW in a lot of different ways, but by definition it is not satisfaction.  It is exhilaration, delight, joy, surprise, awe, admiration.  Customers have to love your product, service, business, team members, follow through, phone support, accounting department, delivery, website and environment.  When these are performed adequately, you may or may not keep the customer’s business.  But if you are trying to get customers for life, you need to WOW them. 

My favorite example of this is in the movie “Miracle on 34th Street”.  (Yes, I have referred to this before.)  Santa Claus refers a customer to Gimble’s because Macy’s did not have the right toy.  This customer tells the toy department manager that in the past she had no use for Macy’s but because of this, she is a customer for life.  She was WOW’d.  She walked away muttering that she did not believe what happened. 

A small gesture can create a customer for life.  Some of the things that WOW customers are unexpected surprises such as thanking them for business or sending them a newspaper article that might help them.  When was the last time you called a customer after a sale to check on the receipt of the service or product?  It does not take money to take service to the next level.  It takes the right attitude, hard work, creativity and a keen desire to pay attention to the customers. 

Areas to Start:

1. Try to WOW your team.  Show them the true meaning of WOW.

2. Brainstorm with your team on how to WOW your customers.

3. Empower the team to WOW your customers.

4. Celebrate the successes!!!!!

May 27, 2009 - Is Honesty Really the Best Policy?

Main Idea

Have you ever found a great deal in an advertisement, only to find there are hidden fees involved? Or been solicited with a “too good to be true” product or service? How many times has a car dealership told you that the most expensive car is the best in the lot? Have you ever read the small print on a television commercial?

Expansion of Idea

It can be quite frustrating as a consumer to try to pick out the small pieces of fact in a sales pitch full of fabrication. What does your company do to ease the frustration of your customers? Some companies choose to outright lie with false advertising, or to omit pertinent information when trying to make a sale. Lying to a customer to get them to purchase your product or service may be a short-term gain, but will eventually ruin your reputation. Without trust, your customers will no longer be your customers.

The best way to take care of your clients is to create lasting, meaningful relationships with them. To do that, they must be able to consistently rely on you, your company, and your word. If you start the business relationship with honesty, and maintain truthfulness and transparency in all aspects of your company, you will have a customer for life. Beyond that, you will gain an advocate that will spread the word to the people they know to spend their money with you. After all, word of mouth referrals in business are the very best form of advertisement. 

As Mary Kay Ash, the founder of Mary Kay cosmetics, once said, “Honesty is the cornerstone of all success, without which confidence and ability to perform shall cease to exist.” This business principle has obviously worked well for the Mary Kay Empire, as 2007 business revenue was upwards of $2 billion dollars world wide!

Areas to Start:

1. Follow through on your promises

2. Fess up if you mess up.

3. Tell the truth (no matter how bad it makes you look)

4. Ask for feedback