Profit, Planning, Process and People

"Our research shows that 85% of all businesses
never execute their plans."

- Harvard Business School

"At most companies, people spend 2 percent of their time recruiting and 75 percent managing their recruiting mistakes." 

- Richard Fairbanks, CEO of Capital One

"Up to 87.7 percent of America's workforce is not able to contribute to their full potential because they don't have passion for their work." 

- Deloitte Center for the Edge

I could have used 20 quotes I have socked away for this post but these 3 seemed to get across the message the best.

I just got back from speaking to about 80 industrial distributors in Las Vegas last week. Jennifer Murphy the President of Net Plus Alliance, a buying group located in Lockport, NY, asked me to speak on the subject of planning. Net Plus has a membership of about 320 industrial distributors and about 100 manufacturers from all over the US.

Jennifer has been a client for a couple of years now and she and her team have taken my process (borrowed from many highly respected business advisors) The Leadership Matrix and embraced it like no other client I have. She knows that planning is not enough - the biggest problem in business is lack of execution of the plans we build.

Thus I sat down, and knowing I only had 30 minutes to present, put together a presentation that covered the most powerful truths I have learned over the last few years working with small business owners. It is called "Profit, Planning, Process and People". (Another title could be "Labor Should Be An Investment Not an Expense".

I recorded it and if you are interested in watching and learning how to execute and leverage your biggest expense (Labor) to increase your profits click one of the options below:

Video Format - Streaming (no pause)

Video Format - Advance by Click

Regards,

Rick Wallace
  

Make Time

"The great dividing line between success and failure can be stated in five words:
I did not have time."

-  Henry Davenport

From Steve Chandler:
 

"I attended a writer's workshop put on by the popular mystery author Lawrence Block. Writers in the audience asked him, "What about time management? How do you make sure you find time to write?"  

He was cruel, but honest, in his response. He said that if you're not writing, it's simply because there are things you are doing that you'd rather do. And if you don't want to write, why bother anyway? When you have something in your life you really want to do, you don't have to "find" time, because you'll "make" time.

This is true of anything I want to do more of. I remind myself that time is made...not found." 

 I'll add to that.

The only sure fire way I have found to get the important things done in your life and career is to block time on your calendar to focus on them. Then commit as though that is the most important appointment you have all week. It is easy to break commitments like that with ourselves - a customer calls and wants to meet, a "big crisis" unfolds, easier things on the to-do list entice you away.

Anything can wait an hour (except a real emergency at home). A customer calls and wants to meet at that time? What if you had a meeting with your most important customer at that time? You would simply say, "Well I have another meeting scheduled for that time, could we meet at ......?"

As a client of mine once did, put up a sign that says "I am my most important customer", and treat appointments with yourself like appointments with your "most important customer".

Put those Rocks in the bowl first and I promise the pebbles will fit around them.

Regard,

Rick Wallace

How to Attract Great People

"At most companies, people spend 2 percent of their time recruiting and 75 percent managing their recruiting mistakes."

- Richard Fairbanks, CEO of Capital One

Whether you network your jobs through employees, customers, associates and people you interact with every day or just run ads, or I hope do all of the above all the time (VIRTUAL BENCH), this information will increase the A Players you attract.

Why focusing on what you need in a candidate rather than what your company can offer them could mean hiring the wrong person for the job.

By Stephanie Vozza

Before you rush to fill that vacant desk, consider this: 66% of U.S. companies have been affected by a bad hire and, for 27%, the decision cost the company $50,000 or more, according to a 2013 survey by Career Builder.

Hiring mistakes can be damaging. In addition to lost revenue, they can negatively impact productivity, client relations and employee morale, but a new study published in the Journal of Business and Psychology found that minor changes to the wording of job ad can increase the size and quality of an applicant pool, giving hiring managers a better chance of getting it right.

The Power Of Needs-Supplied Postings

"The typical job ad focuses on what the employer wants from the applicant," says David Jones, associate professor of business at the University of Vermont and one of the study's authors. "Ads that focus on what employers can offer job seekers--such as autonomy and career advancement--result in better employee-company matches."

For the study, Jones and his co-authors wrote real job ads for a Canadian engineering firm. Some focused on "needs-supplies," what the organization offers applicants, while others focused on "demands-abilities," the skills the organization would require of candidates. Needs-supplies ads received almost three times as many highly rated applicants than demands-abilities ads.

"It's a no-brainer that the time it takes to add a few extra sentences has a really huge implication on the size of applicant pool and the number of candidates that are the very strongest job applicants," says Jones.

To write needs-supplies ads, hiring managers should consider what candidates want: universal desires include autonomy and respect, says Jones. Candidates also look for an opportunity to grow and learn, and have an impact on the organization.

The time it takes to add a few extra sentences has a huge implication on the size of applicant pool and the number of candidates that are the very strongest job applicants.
 

The best ads are a combination of the two kinds of statements--what the company can offer and what it needs. This will screen out those who aren't qualified, while at the same time considering the process from the applicant's perspective.

Jones offers five examples of needs-supplies statements:

·        You will have the opportunity to work on a variety of tasks and develop your skills in many areas.

·        The job will also provide you with autonomy as you will be required to complete tasks with minimal supervision.

·        This position is on an important project, so the successful applicant will have the opportunity to make a valuable contribution to the organization and see the project through to its completion.

·        Employees are given many opportunities for advancement within the organization.

·        You will have many opportunities to collaborate with talented people

Demands-abilities statements might include:

·        The successful applicant will have excellent written and verbal communication skills.

·        Job incumbents will be required to show initiative in prioritizing tasks and carrying them through to completion.

·        We are seeking people who want to contribute to the collective effort of their group and are committed to helping the project team achieve their goals.

·        We seeks people who are interested in constantly expanding their skill set and developing their potential.

·        The successful applicant will enthusiastically support and cooperate with others to develop effective solutions.

A mix of the two kinds of statements is ideal, but the most important part of the job ad is that it's accurate and truthful, says Jones."When job applicants form expectations about things that will happen when they work for a company and then those things are unfulfilled, they will react negatively," he says. "They often withdraw and are likely to quit. In that case, nobody wins."

My Input

People want a place to work where: 

1. They have some autonomy
2. They can and do master their job
3. They share the values and purpose of the company
4. They are appreciated
5. They are" in on things"
6. They see they can contribute

Use huddles, weekly coaching conversations and coaching to ensure you offer these things to your people.

All the best,

Rick Wallace

Stuck? Take Action

"Action is Magic. Thinking about it is fatal. "

- Rick Wallace

I had a client that had committed to draft a plan or punch list to address a big issue in her company. In our mastermind group we had taken a whole session discussing and helping her with this struggle she was having. She committed to having a plan together to share with the group at the next call.

The day before she sent us an email in which she opened with the following message:

"Honestly ladies, I am just plain stuck.  I sit down to outline a plan and stare at a blank word document with "My Plan" at the top and the rest of the page is blank.  I just don't know where to start.  So here is what I have done about being stuck."

Then she proceeded to outline 10 things she had done to address this issue. She ended it with:

"All of that said, I don't have a plan to discuss/present to you this week as promised."

So I sent her an email :

"Action is magic, thinking about it is fatal. I think you have underestimated what you have accomplished. You did what we all need to do when we get stuck - you took action. ACTION melts away the fear. ACTION is much better than inaction - either one is a decision, but ACTION will get the results you want instead of letting things evolve on their own. Just keep taking action - step by step - as (another member of the group) says, "Knowing what to do is not enough" and I always add "Doing is all that matters". Good work.

"Inaction breeds doubt and fear. Action breeds confidence and courage. If you want to conquer fear, do not sit home and think about it. Go out and get busy."

- Dale Carnegie, Author

She sent me a response the next day with this picture of the sign she posted in her office:

Regards,
Rick 

The Soft Stuff That Matters

"Businesses are reflections of their leaders. You've got to choose how you show up each day and the way you show up is the way the business will go."

 - Luke Oroio, CEO Executive Coach

 

The following is a blog post I received the other day. It was the second part of the story about Wegmans - a Western New York food store which wins or places in the top 5 for the last 10 years in Fortune's best places to work. Wegmans is a regional company, privately owned and lead by the Wegmans family and known nationally as the most innovative supermarkets in the country. The following is why.

(This visit is to a different company - but they share the same characteristics as Wegmans.)

 

From Cathy McCollough, Rhythm Systems Coach:

"What I noticed is that this company has a lot of the same characteristics as Wegmans, even though they're clearly in a very different industry. Even so, there was an invisible energy in the room over the two days of their Annual Planning Session that allowed them to create an amazing plan for 2015. When I toured their facility, I encountered friendly people around every corner; all of them wanted to chat. I felt like I was strolling down an avenue of an incredibly fascinating place.

What, I thought, are these businesses doing to soar toward, and sustain, success? Upon reflection, here's my compilation of a few things they're doing that's paving the way for their sustainable success toward their Vision.

• Money and Purpose: Both of them have CEOs who firmly believe that money is a result; it isn't the sole reason for being. To these CEOs, money is the result of doing a whole lot of little things exactly right. What's more important than money to both of these CEOs is their Core Purpose. For my client serving a special needs population, that purpose is Creating Better Lives. If you don't believe (literally) in that Purpose, then you won't fare well as an employee for this organization.
• Vision: Both are extremely intentional in their decision-making. They both had a Vision to be the absolute best in their respective industries, to be innovative in their industries, to build a firm foundation that in some way would impact the lives of others. The secret is that they both have managed to live to that Vision vs. allowing it to escape over time into nothing more than a vapor.
• Legacy: Both CEOs believe in leaving a legacy that will far outlive them.
• Culture: Both CEOs understand the business value of human emotion-both on the employee side as well as on the customer side. There's relevance to emotion and there's an ROI on channeling it in the right direction. Where many leaders simply balk at the 'soft' side of business, these CEOs totally understand it and leverage it.
• Perspective: Both CEOs exhibit personal resolve and professional will (to use terms coined by Jim Collins about Level 5 Leadership). They seem to understand that "it's not about them." It's about something bigger-which takes us back to their Vision and their Purpose.
• Humility: Both CEOs are personally very humble. The CEO I worked with even started keeping a list he calls, "Things I've Learned." He printed it out so he'd have it with him during the two-day Annual Planning Session - just to remind himself of what he's learned (if he needed to do so) and to add to it if needed.
• Operationalizing Values: Both CEOs believed in building organizational cultures founded of a core set of Values, and those Core Values permeate through the very being of both companies. It's a rare sight. Both CEOs and their executive teams realize their Vision simply can't be accomplished without adherence to their Values.
• Strategic Thinking: Both CEOs recognize the value of being strategic in their thinking, of learning, of growing. They admit they don't know it all and look to the collective wisdom of those around them (which includes their customers).
• Commitment to Excellence: Both are committed to excellence, and they're both in constant search of it. It's a cycle that never rests.

Seeing both companies in action is a great demonstration of how a Vision is supported by so many other elements-every single day. The foundation is set with a strong dedication to a small set of Core Values, with a commitment to their reason for being (Purpose), and with a dedication to not only do things but to do things right (Brand Promise). It's their foundation that is steadily leading them in the direction of what they aspire to be (Vision). I have no doubt they'll get there."

Regards,
Rick 

Don't Forget - Execute!

"Ideas are a dime a dozen. People who implement them are priceless."

-- Mary Kay Ash, Entrepreneur

Last week I covered the subject of SMART Goals, what makes a goal a SMART goal, and how vital goals are to building a successful business with engaged employees.

I shared that the power of goals is that once set and committed to, the very next thing that happens is we come up with the ACTIONS/ROCKS/TACTICS that need to be executed or implemented to ensure we achieve those goals.

Then, we get to what I think is the biggest issue or failure in any business -- follow through and execution.

"Goals without Action are worthless, Action without goals are chaos."

- Japanese Proverb

So how do we solve this age old problem of identifying ACTIONS/ROCKS/TACTICS and/or projects (whatever you want to call them), and then following up and ensuring they get executed, finished, done?

Well if you are not executing then you need to trash the process you are currently using and adopt a new process.

What you need is Rhythm, Huddles, Dashboards.

Rhythm provides a consistency to the business that people can count on. Rhythm is a set of Huddles that happen at the same time every week, month and year. No cut, short huddles that provide consistent communication and alignment of your team. Not long drawn out meetings but short, high energy huddles to communicate and follow up.

Weekly huddles 

• Maximum 20 minutes (not a staff meeting with long drawn out discussions
• Review Goals and track progress
• Review Individual Dashboards
• Review a Core Value (pre-selected individual tells the group what the value means and where they have seen it exhibited in the company)

These weekly huddles provide quick follow up and ensure execution using the color coded Dashboards. No forgetting, not surprises.

Here is a short video showing the building of a dashboard and explaining how they are used.

New Results = New Process

Set SMART goals. Identify and prioritize the Actions to ensure you meet the goals, then get a Rhythm going, build your dashboards and have no cut weekly huddles to ensure the follow up necessary to ensure execution.

Regards,
Rick 

Are They SMART?

"The beginning is the most important part of the work."

- Plato, philosopher

In my day-to-day interface with small business owners I find several consistencies. Today I will discuss one big one. 90% do not understand what a good, effective, viable goal is.

You might say why is that so important? Well, it is important because having good, effective, viable goals are critical to a business's success. If you want to know why I am so passionate about this you can listen to this short audio on Goals? Why Bother?

So work with me here. If goals are critical to success, then I think you will agree it is critical to define what a goal is and understand the difference between a tactic/action/rock to reach a goal.

A powerful, effective goal should be a SMART goal:

Specific

Measurable

Accountable

Realistic

Timeframe

Every single one of these is critical, but the Measurable part is usually what is missing from their list of goals. If it is not measureable, then it is not a good, effective, viable goal.

These are examples of what I see people writing down as goals.

1.    I will to grow the business profitably in 2015.

2.    Jill will hire and retain a great staff by using the Topgrading System by 2016.

3.    Bill will to develop a highly effective marketing plan by June 2015.

4.    John will improve our Accounts receivable with a new process installed by June.

These are all Tactics/Actions/Rocks, whatever you want to call them, but they are not goals.

These are the goals (matched to the Actions above):

1.    I will grow revenue to $1.5 million with an EBITDA of 10% in 2015.

2.    Jill will increase employee productivity to $250,000 per Full Time Equivalent and reduce our employee turnover by 50% by December 2015.

3.    Bill will generate 250 leads and convert 20% of those to new customers in 2015.

4.    John will get our A/R days outstanding under 30 days by June 2015.

The Actions/Tactics/Rocks are the things that will be done to ensure we reach the goals and there will be more that we should prioritize and execute to achieve each goal above.

The next thing we do with a SMART goal is begin tracking and measuring and communicating it weekly to the company. If you set goals and then look at them every quarter, or not at all, they are worthless. You have to put some charts in the lunch room and meet weekly for a few minutes to show the team where we are against those goals. Now they come to life and people know what they are and get aligned with them, are engaged and motivated.

We don't forget, we get involved and everyone learns what they can do to help reach the goals.

So if you take the time to set goals, make sure you set SMART goals. Then you can easily come up with the Actions/Tactics/Rocks, prioritize and assign accountability to people in the organization to execute them.

Making sure those Actions/Tactics/Rocks get done - now that is a subject for another time.

Regards,
Rick