You may have heard that three Hyatt Hotels in the Boston area terminated 100 housekeepers as a cost cutting measure to offset a decline in revenues. In light of the massive job losses all around the country this wouldn’t seem like much of a news item. But, how Hyatt terminated the housekeepers has resulted in a hailstorm of protest reported by the Boston Globe, The Wall Street Journal, National Public Radio and all the major networks. It was reported that the housekeepers were asked to train some new workers who would be filling in during vacations. The housekeepers discovered on August 31st that they were all being replaced that day by the same employees that they had trained. The trainees were employees of a Georgia company, Hospitality Staffing Solutions. These employees will earn about half of what the housekeepers were earning. So, in one swift move, Hyatt succeeded in reducing some costs, creating a public relations debacle and losing the trust of its remaining employees. Not so good.
Meanwhile, other hotels in the area have taken a different approach in response to declining revenues. Earlier this year one hotel ended its contract with the company that provided its security and night janitorial service and replaced them with hotel workers from other departments who might have otherwise been laid off.
Over the last year many of my clients have faced similar if not worse revenue declines. I talk with many business owners and thought I’d share a couple of stories how two companies dealt with their issues. Although they’re in different industries, they have similar values and take them seriously. Their values guide them through very difficult situations and help them make the right decisions.
The first example is from a restaurant company that began taking action over a year ago in anticipation of a slow economic recovery. In November of 2008 the executive team developed a plan that has resulted in an overhead reduction of $800,000. This included departmental staff reductions, eliminating some benefits and reducing executive salaries 10%. One of the members of the executive team told me, “Our goal was to do as much as possible without impacting our field operations team. We communicated these steps to the field by holding a series of meetings with all of our General Managers and providing them with the complete picture so they would understand what steps we were taking and why we were taking them.”
Despite this action, revenues continued to decline to the point that the initial savings were not enough. What to do? Having fostered a culture of transparency, the executive team called a town hall meeting. “Midway through 2009, we realized that we would need to trim additional costs. We also realized that we had reduced overhead as much as we could and we now needed to impact the field team. We scheduled a General Manager off-site meeting to pull them into the solution. We communicated the impact of our earlier actions, where we NOW stood financially, where we needed to go and, several cost savings ideas. We then let them discuss alternatives among themselves. The next day, as part of a breakout session with our executive team, the General Managers provided their suggestions. We then asked each GM to force rank his or her top three actions. One week later, after we had time to tally the results, we conducted a series of Webinars to share with them the final outcome. They had identified over $900,000 in savings and taken ownership of the decision".
Each year this company conducts an employee survey to gain feedback on how it’s doing as an employer. This year’s survey was completed after the round of cost cutting initiatives. The company surprisingly had some of its best survey results ever. One of the General Managers stated, “It’s great to be able to face upcoming tough times and changes that need to be made for the company to stay afloat. Thanks for being proactive.”
The second example is from a manufacturing company with 185 employees that produces machined parts for the automotive industry. As you can imagine, this company has been hard hit. At the beginning of 2009, revenues were off 40%. Faced with this challenge the CEO and executive team considered its options; massive layoffs, reduced hours across the board, wage cuts, to name a few. They decided on the following: 1) terminate 25 temporary workers, 2) terminate 20 workers whose jobs were no longer needed due to loss of particular business segment, 3) offer 10 employees early retirement, 4) offer furloughs of 4 to 12 weeks to employees on a volunteer basis (15 employees took furloughs), 5) close the plant one week each month from January through August.
The CEO held meetings with all employees letting them know the severity of the problem facing the company as well as the course of action. Individual meetings were held with impacted employees. Both management and hourly employees were affected and shared the pain equally.
Closing the plant one week per month allowed employees to collect unemployment for the week that they didn’t work and they continued to receive their insurance benefits. Throughout the 8 month period, the CEO and executive team conducted plant-wide meetings to keep everyone abreast of the health of the business. This action helped the company survive the most difficult period in its 59 year history. Business began to rebound in August and in September the plant operated for the entire month. The company also hired 8 temporary employees.
I hope these two examples show you that your business can not only survive these difficult times but also thrive in the future. Ultimately it’s the owner who must make the difficult decisions that keep the business on course. By involving everyone in the solution, the weight of the decision is borne equally and the best is made of a bad situation. You’ll live to fight another day. It is good housekeeping.
Tuesday, September 29, 2009
Wednesday, September 2, 2009
Letting Go
Teddy Roosevelt once said that “the best executive is the one who has sense enough to pick good men to do what he wants done, and self-restraint enough to keep from meddling with them while they do it.”
There are two parts to this challenge. The first is finding and selecting people who fit your company and who have the capacity to learn, to grow and to do their jobs well. The second is staying connected with your people so they are clear on expectations and held accountable for results. If you don’t do both of these things well you’ll never build an effective team, one capable of taking your organization where you want it to go.
If you find yourself feeling guilty for taking time off from work or not enjoying a family vacation because you’re worrying about your business, you have to question whether you’ve picked the right people and why you’re not comfortable with them doing what you’re paying them to do. Does your anxiety stem from not trusting your judgment about the leadership team you’ve selected or from not trusting that they’ll do what you want them to do, or both?
Assuming that you’ve picked the right people (ones who share your values) and that they’re in the right seats (have the capacity to do their jobs well) the next step is to let go. But in letting go, you’re not abdicating your leadership role. You’re creating a framework for your leadership team to stay connected and engaged.
To keep people connected, establish a meeting pulse for your leadership team. You must meet weekly and follow a specific agenda that lasts no longer than 90 minutes. Stay focused. The first half of the meeting is to report, review and create your issues list. Webster’s defines an issue as “a point, matter or question to be disputed or decided.” The second half of the meeting is to prioritize, identify, discuss and solve the key issues. The solutions lead to action items that get completed within the next 1 to 2 weeks.
To keep people engaged, establish quarterly priorities for your company (3 to 7, not 37) and for each member of the leadership team (again, less is more - 2 to 3 is a good start). Choose these priorities carefully. Ask yourself, “Do these quarterly priorities help me achieve my goals for the year? Are they tied to my company’s financial performance?” You should also ensure that each priority is SMART – specific, measurable, achievable, realistic and timely. And, ask each person to establish a process by which they’ll achieve their key priority. You’ll find that no person is an island and that they’ll need each other’s support to complete their priority.
With the right people in the right seats connected and engaged you’re ready to let go. By letting go, you’re not stepping away you’re actually empowering your people to step up, to take responsibility and hold each other accountable to do what they say they will do. Exercise self-restraint while staying connected and engaged.
Now, go enjoy some time off. Your team will keep things running smoothly while you’re gone and you’ll have fewer issues to deal with upon your return.
There are two parts to this challenge. The first is finding and selecting people who fit your company and who have the capacity to learn, to grow and to do their jobs well. The second is staying connected with your people so they are clear on expectations and held accountable for results. If you don’t do both of these things well you’ll never build an effective team, one capable of taking your organization where you want it to go.
If you find yourself feeling guilty for taking time off from work or not enjoying a family vacation because you’re worrying about your business, you have to question whether you’ve picked the right people and why you’re not comfortable with them doing what you’re paying them to do. Does your anxiety stem from not trusting your judgment about the leadership team you’ve selected or from not trusting that they’ll do what you want them to do, or both?
Assuming that you’ve picked the right people (ones who share your values) and that they’re in the right seats (have the capacity to do their jobs well) the next step is to let go. But in letting go, you’re not abdicating your leadership role. You’re creating a framework for your leadership team to stay connected and engaged.
To keep people connected, establish a meeting pulse for your leadership team. You must meet weekly and follow a specific agenda that lasts no longer than 90 minutes. Stay focused. The first half of the meeting is to report, review and create your issues list. Webster’s defines an issue as “a point, matter or question to be disputed or decided.” The second half of the meeting is to prioritize, identify, discuss and solve the key issues. The solutions lead to action items that get completed within the next 1 to 2 weeks.
To keep people engaged, establish quarterly priorities for your company (3 to 7, not 37) and for each member of the leadership team (again, less is more - 2 to 3 is a good start). Choose these priorities carefully. Ask yourself, “Do these quarterly priorities help me achieve my goals for the year? Are they tied to my company’s financial performance?” You should also ensure that each priority is SMART – specific, measurable, achievable, realistic and timely. And, ask each person to establish a process by which they’ll achieve their key priority. You’ll find that no person is an island and that they’ll need each other’s support to complete their priority.
With the right people in the right seats connected and engaged you’re ready to let go. By letting go, you’re not stepping away you’re actually empowering your people to step up, to take responsibility and hold each other accountable to do what they say they will do. Exercise self-restraint while staying connected and engaged.
Now, go enjoy some time off. Your team will keep things running smoothly while you’re gone and you’ll have fewer issues to deal with upon your return.
Why Cyclists Shave Their Legs
A life-long passion of mine is cycling. I started riding seriously about 30 years ago when I got tired of running. I’ve averaged about 3,000 miles per year ever since. My non-cycling friends enjoy ribbing me about the lycra shorts, flashy jerseys and in particular about the fact that I shave my legs. One friend once asked “How far up the leg do you shave?” That would be like asking a Highlander what’s under his kilt. Anyway, you get the picture.
The leg shaving started right after seeing the movie “Breaking Away”, and it has nothing to do with aerodynamics but more to do with hygiene. I tell my cyclephobe friends that in the event of a spill it’s almost impossible to escape without some amount of road rash. The higher the speed the more of a “strawberry” you have to show for the experience. So, it’s much easier to clean, sterilize and bandage the wounds on a shaven leg than on one that could be harvested for two blankets and a throw rug.
Through all my race and road miles I’ve been fortunate to have never had a serious mishap. Call it luck or being alert, I just count my blessings. Well, my luck (and alertness) ran out last night as I had my first bang-up in a long time and fortunately I’m able to write about it. I was riding my usual route and was less than two miles from home when I made a right hand turn onto a road that was being repaved. And, surprise, surprise … the road bed was strewn with fresh gravel and tar. A car was approaching the intersection as I was turning into it and, with nowhere to turn, I went down. It’s amazing how banged up you can get at a relatively low speed. As always, I was wearing a helmet but I neglected to wear chainmail.
The incident left me with scrapes, bruises and a sore shoulder but, other than that I’m no worse for wear. And, fortunately the clean up was made easier by the silky-smooth legs. So, in this case an ounce of prevention (a dab of shaving cream) really is worth a pound of cure. I expect to be out again this evening and will be more alert for sand and gravel and, I’m getting another can of shaving cream.
The leg shaving started right after seeing the movie “Breaking Away”, and it has nothing to do with aerodynamics but more to do with hygiene. I tell my cyclephobe friends that in the event of a spill it’s almost impossible to escape without some amount of road rash. The higher the speed the more of a “strawberry” you have to show for the experience. So, it’s much easier to clean, sterilize and bandage the wounds on a shaven leg than on one that could be harvested for two blankets and a throw rug.
Through all my race and road miles I’ve been fortunate to have never had a serious mishap. Call it luck or being alert, I just count my blessings. Well, my luck (and alertness) ran out last night as I had my first bang-up in a long time and fortunately I’m able to write about it. I was riding my usual route and was less than two miles from home when I made a right hand turn onto a road that was being repaved. And, surprise, surprise … the road bed was strewn with fresh gravel and tar. A car was approaching the intersection as I was turning into it and, with nowhere to turn, I went down. It’s amazing how banged up you can get at a relatively low speed. As always, I was wearing a helmet but I neglected to wear chainmail.
The incident left me with scrapes, bruises and a sore shoulder but, other than that I’m no worse for wear. And, fortunately the clean up was made easier by the silky-smooth legs. So, in this case an ounce of prevention (a dab of shaving cream) really is worth a pound of cure. I expect to be out again this evening and will be more alert for sand and gravel and, I’m getting another can of shaving cream.
Monday, August 3, 2009
Coaching Anyone
I’m asking two questions here: 1) are you coaching anyone and 2) do you enjoy coaching? Hopefully the answer is “yes” to both questions. But, if your answer to either or both questions is “no”, you’re not alone.
I rarely hear business owners tell me how much they enjoy coaching or conducting performance reviews. In fact, most list their process for either event as woefully lacking and admit that they approach performance reviews or coaching sessions with apprehension, anxiety and fear. Face it, there’s a mystery around coaching and what makes for great coaches. Look at the sidelines of any sporting venue. If you’ve watched Phil Jackson, Vince Lombardi (childhood hero) or any of the great coaches, you see a different style that seems to work for each of them. What you don’t see is the substance behind the style. They’ve done their homework and they’ve laid a solid foundation. Vince worked his magic before the game, never wore a headset and confidently paced the sidelines knowing that his team would execute well and win. They don’t call Green Bay “title town” for nothing. Phil “the Zen Master” has helped his teams win more NBA championships than any other coach.
So why the apprehension, anxiety or fear around coaching employees? You might have your own answer to this but it’s usually due to poor preparation. Here are three things that will help:
1. Define your Company’s Culture. Discover and leverage the values that define who you are as people. When you unlock your core values and ensure that everyone shares these values you create clarity about what you stand for and what you won’t stand for.
2. Clarify Roles, Responsibilities and Accountabilities. Less is more here. Forget the 9 page review. In a nutshell, what are the 4 to 6 things that summarize the person’s role and those things for which the person is responsible and accountable? Ensure that everyone has a number. Every person must have a clear expectation of what they need to produce. All great coaches measure progress and have a measurement system (scorecard) in place.
3. Assign Quarterly Priorities. Challenge each person in your organization to complete at least one key priority (we call this a rock) every 90 days. Great coaches are also focused on results.
With this foundation in place, communicate the purpose for the session - you want them to excel within the company and to help the company improve. Now you’re ready for the coaching session. Here’s how it works:
1. Discuss with them how they’re living the Values. Let them tell you specific stories about how they’ve “walked the talk”. Share your observations with them. The outcome is to ensure that you have the Right People, people who fit into your organization.
2. Discuss their job role, responsibility and accountability. Do they demonstrate that they “Get it”, “Want it” and have the “Capacity to do it”? The outcome is to ensure that they’re in the Right Seat. If they don’t “GWC” they’re spinning their wheels and your company won’t get traction. Did they deliver their number(s)?
3. Review how well they completed their key priority or “rock”. The outcome is to ensure that your people put words into action, that they do what they commit to do. This puts “GWC” to the test and gives your company tremendous traction.
You can capture the entire discussion regarding Values, Roles and Rocks on a single sheet of paper. Now, I don’t want to mislead you. This process is simple but it isn’t easy. You must work at it. Vince and Phil didn’t get there overnight and you won’t either. But, this simple approach will demystify the coaching process and yield better results.
With quarterly coaching in place the annual performance/pay review will go much smoother. One of the things that frequently derail the annual review is the correlation between performance and pay. The employee is thinking “I’ve been working hard and haven’t heard anything negative about my work so I wonder how big my raise will be”. You’re thinking “She’s been working really hard and I’m happy with her work but we’re having a tough year and I don’t know how I’m going to tell her that she won’t be getting a raise.” Sound familiar? The pay increase becomes the elephant in the room.
During tough times it’s more important than ever to communicate with everyone in the organization. The quarterly coaching session provides a good opportunity to build trust and to let people know what’s happening. Better to tell them than to have them wonder. Remember, your best people (those who share your values and who get it, who want it and who are highly capable of doing it) have the most options. If they pursue those options you’re left with a weak team and your stars will more than likely be working for your competitors.
I rarely hear business owners tell me how much they enjoy coaching or conducting performance reviews. In fact, most list their process for either event as woefully lacking and admit that they approach performance reviews or coaching sessions with apprehension, anxiety and fear. Face it, there’s a mystery around coaching and what makes for great coaches. Look at the sidelines of any sporting venue. If you’ve watched Phil Jackson, Vince Lombardi (childhood hero) or any of the great coaches, you see a different style that seems to work for each of them. What you don’t see is the substance behind the style. They’ve done their homework and they’ve laid a solid foundation. Vince worked his magic before the game, never wore a headset and confidently paced the sidelines knowing that his team would execute well and win. They don’t call Green Bay “title town” for nothing. Phil “the Zen Master” has helped his teams win more NBA championships than any other coach.
So why the apprehension, anxiety or fear around coaching employees? You might have your own answer to this but it’s usually due to poor preparation. Here are three things that will help:
1. Define your Company’s Culture. Discover and leverage the values that define who you are as people. When you unlock your core values and ensure that everyone shares these values you create clarity about what you stand for and what you won’t stand for.
2. Clarify Roles, Responsibilities and Accountabilities. Less is more here. Forget the 9 page review. In a nutshell, what are the 4 to 6 things that summarize the person’s role and those things for which the person is responsible and accountable? Ensure that everyone has a number. Every person must have a clear expectation of what they need to produce. All great coaches measure progress and have a measurement system (scorecard) in place.
3. Assign Quarterly Priorities. Challenge each person in your organization to complete at least one key priority (we call this a rock) every 90 days. Great coaches are also focused on results.
With this foundation in place, communicate the purpose for the session - you want them to excel within the company and to help the company improve. Now you’re ready for the coaching session. Here’s how it works:
1. Discuss with them how they’re living the Values. Let them tell you specific stories about how they’ve “walked the talk”. Share your observations with them. The outcome is to ensure that you have the Right People, people who fit into your organization.
2. Discuss their job role, responsibility and accountability. Do they demonstrate that they “Get it”, “Want it” and have the “Capacity to do it”? The outcome is to ensure that they’re in the Right Seat. If they don’t “GWC” they’re spinning their wheels and your company won’t get traction. Did they deliver their number(s)?
3. Review how well they completed their key priority or “rock”. The outcome is to ensure that your people put words into action, that they do what they commit to do. This puts “GWC” to the test and gives your company tremendous traction.
You can capture the entire discussion regarding Values, Roles and Rocks on a single sheet of paper. Now, I don’t want to mislead you. This process is simple but it isn’t easy. You must work at it. Vince and Phil didn’t get there overnight and you won’t either. But, this simple approach will demystify the coaching process and yield better results.
With quarterly coaching in place the annual performance/pay review will go much smoother. One of the things that frequently derail the annual review is the correlation between performance and pay. The employee is thinking “I’ve been working hard and haven’t heard anything negative about my work so I wonder how big my raise will be”. You’re thinking “She’s been working really hard and I’m happy with her work but we’re having a tough year and I don’t know how I’m going to tell her that she won’t be getting a raise.” Sound familiar? The pay increase becomes the elephant in the room.
During tough times it’s more important than ever to communicate with everyone in the organization. The quarterly coaching session provides a good opportunity to build trust and to let people know what’s happening. Better to tell them than to have them wonder. Remember, your best people (those who share your values and who get it, who want it and who are highly capable of doing it) have the most options. If they pursue those options you’re left with a weak team and your stars will more than likely be working for your competitors.
Monday, July 13, 2009
The Management Team Annual Off-Site Planning Meeting
We’ve passed the mid-point of 2009. Are you confident that the latter half the year will be better than the first half? How about 2010? Are you hoping that things will be better or do you have a plan in place that is fueling your optimism? Are you worrying about things that are outside of your control or addressing issues that are well within your control? Let’s focus on some items that are within your control:
1) Employees: Do you have the “right people” in your organization? This starts with your Leadership Team. Do they share your values, embrace your company’s culture and Get it, Want it and have the Capacity to do their jobs well?
2) Clients: Do you have the right clients? In other words, is your Target Market clearly defined? Are you trying to be all things to all people or do you have a profile of your Ideal Customer, someone who truly values the things that differentiate you from your competitors?
3) Issues: How good are you and your Leadership Team at solving your company’s problems? Do you treat symptoms or are you getting to the heart of issues and solving them in a timely manner so they don’t linger for days, weeks, months and sometimes years?
4) Accountability: Again, starting with your Leadership Team, are your people accountable for what they say they will do? Does everyone in your organization have a clear sense of their roles, responsibilities and accountabilities?
5) Alignment: Is everyone clear on the Vision for your organization and are they all in the same boat rowing in the same direction? What is the cost to your organization when some are rowing in one direction, some another, some not rowing and some not even in the boat?
An effective Leadership Team devotes time to work “on” the business. This involves rising above the day to day activities associated with working “in” the business and focusing on the company’s overall health. Given the difficulty that most businesses currently face, it’s now more important than ever for you to plan your Management Team’s Annual Off-Site Meeting to develop a strategy that meets market conditions. The objectives for the planning session are three fold:
1) Increase Team Health: A healthy team is reflected by trust, commitment, accountability and results.
2) Create a Clear Company Vision: A clear vision lets everyone in the company know where it’s going and exactly how it will get there.
3) Identify the Issues List: There’s good therapy in getting all the issues (not symptoms) out on the table so they can be solved. Are your issues clear or are they buried deep within the organization?
The Agenda for Day 1:
1) Review the previous year’s results. How did we do?
2) Review the previous quarter’s Key Priorities. Did we complete them?
3) Team Health Exercise
4) Organizational Checkup. Is our organization’s health improving?
5) SWOT (Strengths, Weaknesses, Opportunities, Threats) Analysis
6) Issues List
7) 3 Year Picture, at a high level
On Day 2:
1) Review the Issues List
2) Review the 3 Year Picture
3) Complete the 1 Year Plan
4) Establish Key Priorities for the next quarter
5) Identify, Discuss and Solve Issues
6) Next Steps and Conclude
Accomplishing the stated objectives of improving Team Health, Vision and Problem Solving involves time to think clearly without interruptions and distractions. This is why holding the meeting off-site is crucial. To accomplish the items listed on the agenda takes focus, energy and effective communication. It must be clear that there is an expected return on this investment of time and money. Viewed this way, the Annual Planning Meeting is a boon to the company, not a boondoggle for the Leadership Team.
It’s important to communicate the Agenda and the Outcomes to everyone in the organization. This can have a calming effect. Better for people to know the plan than for everyone to wonder what might happen next. The Management Team Annual Off-Site Meeting is time well spent and when done effectively will more than pay back the investment of time and expense.
1) Employees: Do you have the “right people” in your organization? This starts with your Leadership Team. Do they share your values, embrace your company’s culture and Get it, Want it and have the Capacity to do their jobs well?
2) Clients: Do you have the right clients? In other words, is your Target Market clearly defined? Are you trying to be all things to all people or do you have a profile of your Ideal Customer, someone who truly values the things that differentiate you from your competitors?
3) Issues: How good are you and your Leadership Team at solving your company’s problems? Do you treat symptoms or are you getting to the heart of issues and solving them in a timely manner so they don’t linger for days, weeks, months and sometimes years?
4) Accountability: Again, starting with your Leadership Team, are your people accountable for what they say they will do? Does everyone in your organization have a clear sense of their roles, responsibilities and accountabilities?
5) Alignment: Is everyone clear on the Vision for your organization and are they all in the same boat rowing in the same direction? What is the cost to your organization when some are rowing in one direction, some another, some not rowing and some not even in the boat?
An effective Leadership Team devotes time to work “on” the business. This involves rising above the day to day activities associated with working “in” the business and focusing on the company’s overall health. Given the difficulty that most businesses currently face, it’s now more important than ever for you to plan your Management Team’s Annual Off-Site Meeting to develop a strategy that meets market conditions. The objectives for the planning session are three fold:
1) Increase Team Health: A healthy team is reflected by trust, commitment, accountability and results.
2) Create a Clear Company Vision: A clear vision lets everyone in the company know where it’s going and exactly how it will get there.
3) Identify the Issues List: There’s good therapy in getting all the issues (not symptoms) out on the table so they can be solved. Are your issues clear or are they buried deep within the organization?
The Agenda for Day 1:
1) Review the previous year’s results. How did we do?
2) Review the previous quarter’s Key Priorities. Did we complete them?
3) Team Health Exercise
4) Organizational Checkup. Is our organization’s health improving?
5) SWOT (Strengths, Weaknesses, Opportunities, Threats) Analysis
6) Issues List
7) 3 Year Picture, at a high level
On Day 2:
1) Review the Issues List
2) Review the 3 Year Picture
3) Complete the 1 Year Plan
4) Establish Key Priorities for the next quarter
5) Identify, Discuss and Solve Issues
6) Next Steps and Conclude
Accomplishing the stated objectives of improving Team Health, Vision and Problem Solving involves time to think clearly without interruptions and distractions. This is why holding the meeting off-site is crucial. To accomplish the items listed on the agenda takes focus, energy and effective communication. It must be clear that there is an expected return on this investment of time and money. Viewed this way, the Annual Planning Meeting is a boon to the company, not a boondoggle for the Leadership Team.
It’s important to communicate the Agenda and the Outcomes to everyone in the organization. This can have a calming effect. Better for people to know the plan than for everyone to wonder what might happen next. The Management Team Annual Off-Site Meeting is time well spent and when done effectively will more than pay back the investment of time and expense.
Monday, July 6, 2009
A Walk in the Woods
Have you ever been lost in the woods? I mean really lost? That terrifying, “oh s _ _ t! I’ve really gotten myself into a tight spot this time” kind of lost. Lost to the point where you worry about having to spend the night or perhaps several nights alone? What was the first thing that you did after the panic subsided and you stopped wandering around aimlessly? You probably sat down and thought to yourself “wait a minute, settle down, take a breath, THINK for a minute.” And it was during that moment of clarity that you started really thinking about your situation differently. You were able to figure it out and find your way out of the woods.
There’s a lesson here that can be carried over to your business. How often do you find yourself so deep in the woods that you can’t see the trees? What do you do? Do you take a minute by yourself to settle down, take a breath and THINK? To see things clearly it’s important to make some “think time” for yourself.
To clarify, “think time” is not recreation, playing hooky or goofing off. It’s quiet time that’s dedicated to thinking about your business and your life. We call this a “Clarity Break”. Here’s how it works. Schedule a time that works for you to leave your office and think. I mean really think! This can be the library, a favorite coffee shop, going for a hike or whatever it takes for your mind to break free from all the stuff that’s worrying you or holding you back.
I have a friend that discovered bicycling a few years ago. He schedules time during the week to get out alone and ride for an hour or so. No interruptions, no phone calls, no distractions. He tells me that he does some of his best thinking during these breaks from the office. This is actually part of his work routine! “What do you think about on your rides?” I asked him. “I think about how I can add value in my role as the owner of my business. I think about nagging issues that need resolution and how I might approach those issues differently. I think about how lucky I am to have a business worth worrying about. I think about how I can help others. I always seem to return to the office in a much better frame of mind. I take out a pad of paper and write down the things that I was thinking about. It really helps me put things in perspective.”
Let’s face it, thinking is hard work. As Henry Ford once lamented, it’s probably the reason why so few people do it. Try my friend’s routine for a few months. Schedule the time to THINK and see if it helps you approach things differently. You’ll learn to appreciate the trees again and that walk in the woods!
There’s a lesson here that can be carried over to your business. How often do you find yourself so deep in the woods that you can’t see the trees? What do you do? Do you take a minute by yourself to settle down, take a breath and THINK? To see things clearly it’s important to make some “think time” for yourself.
To clarify, “think time” is not recreation, playing hooky or goofing off. It’s quiet time that’s dedicated to thinking about your business and your life. We call this a “Clarity Break”. Here’s how it works. Schedule a time that works for you to leave your office and think. I mean really think! This can be the library, a favorite coffee shop, going for a hike or whatever it takes for your mind to break free from all the stuff that’s worrying you or holding you back.
I have a friend that discovered bicycling a few years ago. He schedules time during the week to get out alone and ride for an hour or so. No interruptions, no phone calls, no distractions. He tells me that he does some of his best thinking during these breaks from the office. This is actually part of his work routine! “What do you think about on your rides?” I asked him. “I think about how I can add value in my role as the owner of my business. I think about nagging issues that need resolution and how I might approach those issues differently. I think about how lucky I am to have a business worth worrying about. I think about how I can help others. I always seem to return to the office in a much better frame of mind. I take out a pad of paper and write down the things that I was thinking about. It really helps me put things in perspective.”
Let’s face it, thinking is hard work. As Henry Ford once lamented, it’s probably the reason why so few people do it. Try my friend’s routine for a few months. Schedule the time to THINK and see if it helps you approach things differently. You’ll learn to appreciate the trees again and that walk in the woods!
Friday, June 5, 2009
"Decide! The One Common Denominator of All Great Leaders
Gino Wickman has just released his second book. Read Gino's note below and follow the link to download your FREE copy. I hope you enjoy this book! Rene'
"I'm excited to announce the release of my second book: Decide! The One Common Denominator of All Great Leaders. Click here to download
During the process of writing this book, I made two controversial decisions in order to get the message out fast and to as many people as possible in these trying times:
The first was not to print this book and to deliver it immediately as an e-book.
The second was to offer it for free!
I am hopeful that these two decisions don't diminish the book's value in your mind. Based on test reader feedback, you will find the writing, content, and message to be valuable, timely, and powerful.
In the interest of making decisions, you now have a decision to make: Read it now, or read it later. By choosing now, you will get a powerful how-to message that is concise (you can read it in 30 minutes) and packed with real-life stories that will improve your and your team's decision-making ability right now. Download it now
My goal is to get this book to 10,000 decision makers in the next week, and I can't do it without your help. Please forward this email and share this book with everyone you feel will benefit from its message and the value of being a good decision maker.
I'd love to hear your feedback. Please let me know if I can help in any way."
Stay focused,Gino
EOS Worldwide • 17197 N. Laurel Park Dr., Ste. 149 • Livonia, MI 48152 • 1-877-EOS-1877
"I'm excited to announce the release of my second book: Decide! The One Common Denominator of All Great Leaders. Click here to download
During the process of writing this book, I made two controversial decisions in order to get the message out fast and to as many people as possible in these trying times:
The first was not to print this book and to deliver it immediately as an e-book.
The second was to offer it for free!
I am hopeful that these two decisions don't diminish the book's value in your mind. Based on test reader feedback, you will find the writing, content, and message to be valuable, timely, and powerful.
In the interest of making decisions, you now have a decision to make: Read it now, or read it later. By choosing now, you will get a powerful how-to message that is concise (you can read it in 30 minutes) and packed with real-life stories that will improve your and your team's decision-making ability right now. Download it now
My goal is to get this book to 10,000 decision makers in the next week, and I can't do it without your help. Please forward this email and share this book with everyone you feel will benefit from its message and the value of being a good decision maker.
I'd love to hear your feedback. Please let me know if I can help in any way."
Stay focused,Gino
EOS Worldwide • 17197 N. Laurel Park Dr., Ste. 149 • Livonia, MI 48152 • 1-877-EOS-1877
Monday, June 1, 2009
"No Experience Wanted"
A common frustration that I hear often from business owners is how difficult it is to find and keep “good people”. Conversely, “bad people”, those who regularly commit one or all of the Seven Deadly Sins, seem to abound. And, once “good people” are hired, it’s only a matter of time, usually less than 90 days, before they somehow mysteriously turn out to be “bad people”. The lament is often “they interviewed so well, but …”
When I ask how they would define “good people” I hear “they really fit into our company, they get it.” In other words, they’re the Right People. Interestingly, “bad people” are described as “they never really fit into our organization, they just didn’t get it.” Rarely are the Seven Deadly Sins mentioned. So what happened? Were “bad people” masquerading as “good people”? Or, did “good people” suddenly have a life-changing experience that turned them to the dark side?
Some time ago I had a conversation with a business owner who was hiring sales people. His ads for the position contained the headline “No Experience Wanted”. He told me that his focus is hiring people that share his values and will be a good fit for his company. Although skills are important, he’s more concerned about fit. “I can teach them the necessary skills but I can’t teach values.”
He has a very rigorous interviewing process where candidates meet with key people in the company, each of whom asks specific questions designed to determine how well the person will fit into the organization. And, the owner shares the company’s values with every candidate. He’s learned that by starting with the right people, training goes more smoothly and new employees get up to speed faster.
Sadly, hiring decisions are often based exclusively on two components: technical ability and work history or experience. The component that generally gets missed is core value alignment. That’s because most companies have not discovered their core values. These core values already exist, but they are buried deep in the organization. They need to be discovered, communicated and used as a guiding principle for how employees, customers, vendors and shareholders are treated.
What goes wrong when people are not aligned the company’s core values? They place personal career goals before the company’s goals, pursue what’s good for their departments versus the greater good of the organization, infighting and politicking, etc. Ultimately people leave the company. But, often times, it’s the Right People - the ones that share our values, who leave first. When they see leaders not walking the talk, not living the values, they’ll find another opportunity where values mean something.
“Experience” may be an asset, but it can’t be a value. Discover your core values and make them work for you. You’ll attract the Right People and expunge the Wrong People. You’ll discover that the Right People are your most valuable asset.
When I ask how they would define “good people” I hear “they really fit into our company, they get it.” In other words, they’re the Right People. Interestingly, “bad people” are described as “they never really fit into our organization, they just didn’t get it.” Rarely are the Seven Deadly Sins mentioned. So what happened? Were “bad people” masquerading as “good people”? Or, did “good people” suddenly have a life-changing experience that turned them to the dark side?
Some time ago I had a conversation with a business owner who was hiring sales people. His ads for the position contained the headline “No Experience Wanted”. He told me that his focus is hiring people that share his values and will be a good fit for his company. Although skills are important, he’s more concerned about fit. “I can teach them the necessary skills but I can’t teach values.”
He has a very rigorous interviewing process where candidates meet with key people in the company, each of whom asks specific questions designed to determine how well the person will fit into the organization. And, the owner shares the company’s values with every candidate. He’s learned that by starting with the right people, training goes more smoothly and new employees get up to speed faster.
Sadly, hiring decisions are often based exclusively on two components: technical ability and work history or experience. The component that generally gets missed is core value alignment. That’s because most companies have not discovered their core values. These core values already exist, but they are buried deep in the organization. They need to be discovered, communicated and used as a guiding principle for how employees, customers, vendors and shareholders are treated.
What goes wrong when people are not aligned the company’s core values? They place personal career goals before the company’s goals, pursue what’s good for their departments versus the greater good of the organization, infighting and politicking, etc. Ultimately people leave the company. But, often times, it’s the Right People - the ones that share our values, who leave first. When they see leaders not walking the talk, not living the values, they’ll find another opportunity where values mean something.
“Experience” may be an asset, but it can’t be a value. Discover your core values and make them work for you. You’ll attract the Right People and expunge the Wrong People. You’ll discover that the Right People are your most valuable asset.
Tuesday, May 19, 2009
Gino Wickman on EOtv
See EOS creator and Traction author Gino Wickman on EOtv providing a brief introduction to these timeless concepts and simple, practical tools that help entrepreneurs get what they want from their businesses.
Monday, May 11, 2009
Mater Artium Necessitas
For those of you who never took (or slept through High School Latin) “Necessity is the Mother of Invention.” Often, necessity is the mother of lots of things. I’d like to share how necessity helped improve productivity for a restaurant company that I was involved in. The restaurant served made-to-order meals in a casual setting where the lunch period represented more than 60% of all revenues. In other words, “lunch time was crunch time.”
We developed a process that served over 400 meals in 90 minutes. Guests placed their order with a cashier, watched their food being prepared as they proceeded along a display kitchen to the pick-up area where their food was either bagged for carry-out or served on a tray to be enjoyed in the dining room. It was about high quality food, served quickly at a great value.
In addition to the lay-out, equipment and operating system we needed 13 employees during the peak revenue period. Each employee was well trained, knew his or her specific role and worked well as part of a team. We were convinced that 13 was the magic number for a well-staffed lunch period. That is until Pedro called in sick!
We had a quick meeting with the entire team and asked them what needed to happen to ensure that things would go smoothly during lunch. Adjustments were made and we never missed a beat. After lunch we had another quick meeting and shared our observations. 12 was now the magic number. That is until Mary quit!
Do you see where this is going? Same drill, same result. 11 was now the magic number. That is until Fred left to go back to college. The new magic number … you guessed it … 10!
By this time we woke up and challenged how we were doing things. After all, the Mother of Invention didn’t raise a dummy! We challenged everything that we had been doing and explored ways to simplify our processes without sacrificing food quality, service speed or value. To make a long story short we were able to improve throughput with a staff of 8 people. Now, make no mistake. These were 8 highly trained and motivated people.
As we streamlined the process and reduced waste, inefficiency and labor hours we also increased wages for the remaining team members. They took pride in working well together, serving great food to customers and being well paid. All because Pedro had called in sick!
What event could lead you to your Mother of Invention?
We developed a process that served over 400 meals in 90 minutes. Guests placed their order with a cashier, watched their food being prepared as they proceeded along a display kitchen to the pick-up area where their food was either bagged for carry-out or served on a tray to be enjoyed in the dining room. It was about high quality food, served quickly at a great value.
In addition to the lay-out, equipment and operating system we needed 13 employees during the peak revenue period. Each employee was well trained, knew his or her specific role and worked well as part of a team. We were convinced that 13 was the magic number for a well-staffed lunch period. That is until Pedro called in sick!
We had a quick meeting with the entire team and asked them what needed to happen to ensure that things would go smoothly during lunch. Adjustments were made and we never missed a beat. After lunch we had another quick meeting and shared our observations. 12 was now the magic number. That is until Mary quit!
Do you see where this is going? Same drill, same result. 11 was now the magic number. That is until Fred left to go back to college. The new magic number … you guessed it … 10!
By this time we woke up and challenged how we were doing things. After all, the Mother of Invention didn’t raise a dummy! We challenged everything that we had been doing and explored ways to simplify our processes without sacrificing food quality, service speed or value. To make a long story short we were able to improve throughput with a staff of 8 people. Now, make no mistake. These were 8 highly trained and motivated people.
As we streamlined the process and reduced waste, inefficiency and labor hours we also increased wages for the remaining team members. They took pride in working well together, serving great food to customers and being well paid. All because Pedro had called in sick!
What event could lead you to your Mother of Invention?
Monday, March 23, 2009
Gino's Passionate Plea - #2
I’m noticing two key issues right now.
I send this with an assumption that you have read the first passionate plea. Trusting that from the first passionate plea you are putting the greater good of the company first, you have reversed your accountability chart (if necessary), are staying disciplined, are remaining at your best and are facing the brutal facts of reality. Here they are.
The two key issues for even the ones that are doing well on all of the above are that most leaders are frozen, and they are not fighting. I’ll expand on each, one at a time:
1. They are frozen means that people are stuck, uncertain, feeling isolated, and confused. If you can relate, I would prescribe four remedies immediately:
- Make a list of everything that is worrying you. I know that this might seem counterproductive, but just do it. When I meet with people who are wrestling with issues, the first thing I have them do is write out all of their concerns, fears and worries. As Dan Sullivan says, “All progress begins with telling the truth.” This exercise will literally change your brain function from “fight or flight” to “rational and logical” thinking. It’s powerful.
- Do something. You’ve got to create movement in some direction. The reason you have a problem, issue, or concern or are losing energy is simply that you have not made a decision. It is time to start making decisions. As the saying goes, “It’s more important that you decide than what you decide.” So decide!
- Have a plan. Your people are eager and want to know your plan. It is vital that you crystallize it and over-communicate it regularly. You owe it to them, and they need it. The number one difference I see between employees that are motivated and the ones that aren’t is that their leadership team has a plan.
- Stop wallowing in what you’ve lost. We have all lost things as of late, whether it’s property values, 401k values, net worth, money, or clients. The world has right-sized. Treat right now as the starting point. This is the first day of the rest of your life. Just simply go forward from here.
2. They are not fighting, which means that a lot of leaders are being a little meek. I will lose a few friends with this one, but here it goes. I am noticing that people are a little spoiled. It’s been easy for the last 10 years. We have to get good at a little hand-to-hand combat. In sitting down with one of my clients that is experiencing massive growth in a very tough, competitive, and beat-up industry, he shared how he is winning. In the conversation he stated, “I realized that I have been fighting my whole life. It’s second nature for me.” Simply put, he is a good fighter.
Please don’t get me wrong: I am talking about a fair and good fight, but a fight nonetheless. Saying it another way, don’t leave any stone unturned. Make sure that you are maximizing, adding value, and taking good care of every client; that your sales and marketing are rock-solid and clearly solving a problem for people; that you are exhausting every option; and that you are staying laser-focused and everyone is doing the basics.
It is on us, the entrepreneurs and leaders, to provide the momentum. You can’t control the world economy, but you can control your own economy. Start with your family, your business, and your network, and be the positive force. Be the spark.
One last closing thought: I have a rare perspective working with 35 companies at any given time in southeast Michigan. In summary, what I see the great ones doing are the following seven things:
- They have a plan and are moving forward.
- They convey that plan to their employees often.
- They are staying realistic (not optimistic or pessimistic).
- They are right-sizing (reverse accountability chart).
- They are protecting cash flow/profitability.
- They are working twice as hard.
- They are fighting.
I hope this helps. Please don’t hesitate with questions, comments, or feedback.
Stay focused,
Gino
Monday, March 9, 2009
The Ambition to Excel
3/9/2009
During the last year of his life, John Adams, our second President, was visited by a young Ralph Waldo Emerson, recently graduated from Harvard University. Emerson spent the day with Adams listening to him reminisce the birth of our nation.
The American Revolution was a time of risk and great uncertainty but our founding fathers persevered in their resolve to create a new nation. In addition to external threats and challenges, they overcame internal conflicts and rose above their personal agendas for the common good and for a common goal, a free America.
Years later, Emerson was asked about the day that he had spent with Adams. Emerson said that he was struck by Adam’s comment that what the country lacked, and needed most, was people with the “ambition to excel”.
The ambition to excel drives us to go beyond the possible and pursue the seemingly impossible. It helps us understand that the opposite of success isn’t failure, it is complacency.
During the last year of his life, John Adams, our second President, was visited by a young Ralph Waldo Emerson, recently graduated from Harvard University. Emerson spent the day with Adams listening to him reminisce the birth of our nation.
The American Revolution was a time of risk and great uncertainty but our founding fathers persevered in their resolve to create a new nation. In addition to external threats and challenges, they overcame internal conflicts and rose above their personal agendas for the common good and for a common goal, a free America.
Years later, Emerson was asked about the day that he had spent with Adams. Emerson said that he was struck by Adam’s comment that what the country lacked, and needed most, was people with the “ambition to excel”.
The ambition to excel drives us to go beyond the possible and pursue the seemingly impossible. It helps us understand that the opposite of success isn’t failure, it is complacency.
Sunday, February 8, 2009
Are You Keeping Score?
Imagine yourself at a basketball game. You’ve paid big bucks for prime seats and you’re anxious for the game to begin. Just before the tip-off, the announcer lets everyone know that the scoreboard has malfunctioned but that tonight’s game will go on as scheduled. He explains that the athletes are ready to go and that the sports writers have agreed to keep score and report the outcome by the end of the month. Would you be content to watch the action and then wait a few weeks for the results?
Now let’s assume during a staff meeting you ask, “How are things going?” “I’ve been busy”, says the sales manager. “Had a long week”, says the director of operations. “Paid lots of bills”, says the controller. Would these answers give you a good sense of how your business is doing?
Do you find yourself tossing and turning at night, even when things are going well, because you’re not sure what’s driving your results? You’re not alone. Many business owners suffer from anxiety over not having a pulse on their business. As in sports, in business a scorecard gives you timely information about how well you’re doing. And, just like the basketball coach, it allows you to make timely adjustments that will help you win. Unfortunately, most business owners find themselves in month-end business reviews pouring over income statements, wondering what went wrong and listening to lots of reasons and excuses for why the company fell short of its goal.
An effective scorecard measures the activities that drive desired results. This gives you assurance that your processes are working and that your organization is taking ownership for results. Building a robust scorecard is easier than you might think. Challenge yourself and your leadership team to think about key activities that must be performed well. How can these activities be measured? Give everyone on your team a number, a measurable that they are held accountable for achieving. These key activities will roll up to your company scorecard and will reassure you that everything is on track.
I’ve had owners tell me that everything was going fine until one day “boom, we were hit by a tsunami!” To avoid the tsunami, use your scorecard to spot trends and make the corrections necessary to keep the team on track.
Let’s go back to that basketball game. How well do you think those teams would play without a working scoreboard? Face it, the scoreboard cuts through egos, emotions and effort and reveals how well they’ve really played.
Work with your team to create a scorecard for your business. It will be rewarding and like a good game of basketball … fun!
Now let’s assume during a staff meeting you ask, “How are things going?” “I’ve been busy”, says the sales manager. “Had a long week”, says the director of operations. “Paid lots of bills”, says the controller. Would these answers give you a good sense of how your business is doing?
Do you find yourself tossing and turning at night, even when things are going well, because you’re not sure what’s driving your results? You’re not alone. Many business owners suffer from anxiety over not having a pulse on their business. As in sports, in business a scorecard gives you timely information about how well you’re doing. And, just like the basketball coach, it allows you to make timely adjustments that will help you win. Unfortunately, most business owners find themselves in month-end business reviews pouring over income statements, wondering what went wrong and listening to lots of reasons and excuses for why the company fell short of its goal.
An effective scorecard measures the activities that drive desired results. This gives you assurance that your processes are working and that your organization is taking ownership for results. Building a robust scorecard is easier than you might think. Challenge yourself and your leadership team to think about key activities that must be performed well. How can these activities be measured? Give everyone on your team a number, a measurable that they are held accountable for achieving. These key activities will roll up to your company scorecard and will reassure you that everything is on track.
I’ve had owners tell me that everything was going fine until one day “boom, we were hit by a tsunami!” To avoid the tsunami, use your scorecard to spot trends and make the corrections necessary to keep the team on track.
Let’s go back to that basketball game. How well do you think those teams would play without a working scoreboard? Face it, the scoreboard cuts through egos, emotions and effort and reveals how well they’ve really played.
Work with your team to create a scorecard for your business. It will be rewarding and like a good game of basketball … fun!
Monday, January 12, 2009
Standing Tall or Hunkering Down?
With the pundits forecasting a bleak 2009 I’m not surprised that many business owners view “the Economy” as their biggest challenge this year. There’s no doubt that we’re facing tough times.
I’ve talked with many business owners who have told me that they’re “hunkering down”. But, I’ve been fortunate to be work with some business owners who are keeping their heads up, focused on the horizon. They know that their organizations are counting on them for leadership and they are determined to see their companies not only survive but thrive.
While their competitors blame external factors for most of their woes, they look inward and ask themselves some tough questions:
1) What can we do better than anyone else?
2) Who is our ideal customer and what are the things that are unique about us that this customer truly values?
3) What’s the number one goal here? Where will we be in 10 years, 3 years and at the end of this year? Is everyone aware of this goal and are we all on the same page?
4) Do all employees know their roles and are they held accountable for results?
5) Is everyone working on the most important things right now? Are these things getting done? On time?
These owners appreciate the importance of their most valuable asset … the right people. People who share their values, truly fit into the culture and who get it, want it and have the capacity to do their jobs well. In other words, to borrow from Jim Collins, they’re putting the right people on the bus and helping the wrong people off the bus. While others are shedding employees like excess weight, they’re muscle-building their organization and keeping it focused.
They’re tough-minded and tenacious. They keep going when many others are ready to throw in the towel. They keep things in perspective, see the glass has half full and recognize that with every obstacle or set back there lies an opportunity to learn and grow. And finally, they recognize that they can’t do these things from a prone position. Stand tall.
I’ve talked with many business owners who have told me that they’re “hunkering down”. But, I’ve been fortunate to be work with some business owners who are keeping their heads up, focused on the horizon. They know that their organizations are counting on them for leadership and they are determined to see their companies not only survive but thrive.
While their competitors blame external factors for most of their woes, they look inward and ask themselves some tough questions:
1) What can we do better than anyone else?
2) Who is our ideal customer and what are the things that are unique about us that this customer truly values?
3) What’s the number one goal here? Where will we be in 10 years, 3 years and at the end of this year? Is everyone aware of this goal and are we all on the same page?
4) Do all employees know their roles and are they held accountable for results?
5) Is everyone working on the most important things right now? Are these things getting done? On time?
These owners appreciate the importance of their most valuable asset … the right people. People who share their values, truly fit into the culture and who get it, want it and have the capacity to do their jobs well. In other words, to borrow from Jim Collins, they’re putting the right people on the bus and helping the wrong people off the bus. While others are shedding employees like excess weight, they’re muscle-building their organization and keeping it focused.
They’re tough-minded and tenacious. They keep going when many others are ready to throw in the towel. They keep things in perspective, see the glass has half full and recognize that with every obstacle or set back there lies an opportunity to learn and grow. And finally, they recognize that they can’t do these things from a prone position. Stand tall.
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