Business Counsel A Forum for Ideas and Exchange

Small and mid-sized companies need to think strategically

2012-05-22T03:35:00Z

The lack of strategic planning in the smaller sized companies can often be attributed to a lack of time and understanding. Owners and company executives tend to become absorbed with the daily operations of the company; focusing on the immediate and not the long-term. Contrarily, some company owners may recognize the importance of strategic planning yet are hindered by a lack of understanding of the processes. Although vast volumes of books have been written on the subject of strategic planning, many address the needs of a large corporate entity and speak of complexities that are not applicable to the smaller organization.

Strategic planning does not necessarily need to be a complicated process involving elaborate planning tools. In its simplest structure it can be described as the development of a long-term company positioning based on that which provides value to customers and shareholders. It requires knowledge of the fundamental industry shifts and how customers and competitors are responding to those changes. Flexibility is an inherent characteristic, required for continuous change and adaptation. Evaluating strategic options is based on identifying those choices that are most capable of providing value for all stakeholders and aligns with the organizations’ vision and core competencies.

Therefore, the best place to start is to develop an awareness of the fundamental changes occurring within the industry and begin to align those changes with the organizations’ core competencies. To this end, answering the following three questions can provide any sized organization with a starting point.

(1) What Business are we in?
(2) What changes are occurring in the industry?
(3) How do we make money?

To purchase: Planning Your Company's Growth: A 10 Step Guide to the Strategic Planning Process http://businesssimplyput.com/SimplyPutSummaries.htm

Finance Information--Must Know's

2012-05-15T03:35:00Z

The finance department is responsible for recording all the internal business accounting and bookkeeping transactions in the company’s accounting journals. This includes a myriad of activities such as sending invoices to customers and collecting payment, paying vendors and overhead expenses and distributing payroll.

While these are important and fundamental company functions, higher-level "CFO" responsibilities such as the management of the financial resources, profitability assessment, budgeting and forecasting are crucial to maintaining the financial health of the company. Unfortunately, for budgetary reasons most small organizations do not hire individuals with this level of financial acumen. It is this lack of financial management that ultimately leads to company failure. In other words, it could be said that the company failed due to a decrease in sales but actually, the failure is due to the company inability to recognize the pending decrease and make the required financial adjustments.

Larger organizations also experience sales declines but the CFO recognizes this through forecasting models. They may still experience a decline as they are forced to do a massive layoff or debt restructuring but they continue to stay in business allowing time to recover. Whereas the smaller company, lacking the financial sophistication, looses the advantage of time to make the required changes.

Such financial acumen can be available to small companies and may not be as expensive as perceived. There are various companies and independent consultants that function as contract CFO's and business forecasting models can be purchased. Additionally, some CPA's also function as business consultants and offer CFO type services.

To purchase EBooks on this and other business subjects visit www.BusinessSimplyPut.com

(See www.LWandAssociates.com and www.BusinessSimplyPut.com for more information).

Research market conditions

2012-04-24T21:26:00Z

Bottom line-your business is not going to improve until either your customers’ business improves or you develop new customers. Now is the time to consider slight modifications to your business model. Can you change your product/service offering to attract a new or different buyer? Can you rebundle or repackage your offerings to sell at a different price point? Some of the best ideas (and companies) have developed out of a need to change the status quo in response to new market conditions.

Moreover, the best ideas originate as solutions to existing problems. Invest time listening to your customers and learn about the challenges they are facing. You will gain inside information about industry trends and may just learn about a problem that your company has the core competencies to solve, which can become a new future revenue stream.

Don’t be preoccupied by economic indicators that predict the end of the recession, as your industry could be well on its way to recovery before such indicators turn positive. Instead look for positive signs developing in your backyard, such as your customer’s businesses are beginning to improve, increased sales inquiries, and a general renewed optimism in your industry.

Watch for complimentary and substitute changes in consumer behavior. If suddenly Wal-Mart’s parking lot is less full and Target’s has increased, perhaps consumers are once again looking for up market prices and offerings. Some behaviors established during the economic crises may become future habits. Do not become blind sighted believing that what was once—will be again.

In order to succeed in today’s Darwinian environment, business leaders need a combination of acumen, intelligence and instinct. Personal relationships with employees, customers and vendors are the company’s core assets, which will be invaluable as companies seek to reestablish growth. While it is true that we have had unprecedented high living, to the likes that we may never see again in our lifetime, that does not mean that tomorrow will not present new opportunities with the renewed excitement and optimism that has been the foundation of the American entrepreneur.

Lori Williams has released two new e-books available in PDF format and on Amazon for Kindle. Visit www.BusinessSimplyPut.com and click in ebooks to learn more.

Strategic Planning - What to Consider

2012-04-17T21:26:00Z

In order to survive long-term, companies must develop a unique and sustainable competitive advantage—what will set your company apart from your competitors. Additionally, independent of size or time in business, companies have limited resources for deployment and must determine how best to invest scarce resources. The main resources are human capital (the people and their talents) and financial capital (the amount of money available to invest in operations, marketing etc.)

Conversely, the organization may have a plethora of opportunities, ideas and goals that it desires to pursue. This presents a strategic dilemma. The organization needs to invest its limited resources in those opportunities that have the greatest potential return, while maintaining a long-term sustainable competitive advantage. In this, the strategic plan’s objective is to provide business leaders with a framework of choices –what industries to pursue, what products or services to offer and how to deploy scare resources for the maximum return.

Moreover, the strategy must be dynamic. There was a time when strategic plans could last a decade (or more) but this is no longer true. A strategic plan may have a shorter shelf life than one would expect. Companies in mature industries may be able to develop a strategic plan which could last several years and be reviewed yearly with slight modifications. However, companies in emerging industries or those experiencing seismic structural shifts may need to revisit their plan quarterly. In fact, it could be argued that the best strategic plan in today’s fast-paced business environment is not written very far in advance but developed in real-time as the game evolves; new competitor’s spring into action, demand or preferences change and technology brings a new twist. A strategy driven organization accepts the fact that the strategic plan must evolve as the economy, business environment and other factors present new threats and opportunities. In contrast, the organization that does not engage in strategic thinking tends to maintain a reactionary stance, trying to defend its position rather than seeking new opportunities.

The ebook Strategic Planning Made Simple--10 Easy Steps can be purchased at www.BusinessSimplyPut.com

Developing Brand Strategies for Services

2012-04-10T21:25:00Z

The intangibility of services has implications for the choice of branding. Since service decisions are often made without an actual prior experience of the service, previous communication efforts must allow the potential client to understand its value tacitly.

A distinctive brand strategy must build reputation and recognition, provide information and education and promote differentiation. Depending on the desired future growth of the firm, branding can either be developed over time through satisfied clients (word of mouth) or communicated extensively through a PR/marketing campaign. Service firms must therefore design marketing communication and informational programs so that clients learn more about the brand, rather than having limited exposure through purchase or referral.

Devising Brand Strategy

Services must develop a brand hierarchy and brand portfolio that permits positioning and targeting of different market segments. Classes of services can be branded vertically based on price and components. This can be achieved through differentiating by price or bundling.

Moreover, the method of introduction (how services are packaged/bundled) can determine if a potential client will “risk” trying a service without previous history with the service and/or the company. For this reason pricing strategies should be adjusted to market demands and perceptions, while addressing profitability requirements.

Lori Williams has released two new e-books available in PDF format and on Amazon for Kindle. Visit www.BusinessSimplyPut.com and click in ebooks to learn more.

Recession, Regression, Reconstruction—where are we now?

2012-04-03T21:24:00Z

This week I attended the Mid-Year Economic Forecast . The talk outside the conference was restrained optimism; a “maybe not bad as before” attitude. Here are some of the highlights from the presentation.

Unemployment remains uncomfortable high. More concerning, 40% of the people who lost their jobs have been unemployed for 6 months or longer. The economist stated that the recession is over, but growth will be slow and it will take many years before the economy can absorb those lost jobs.

Continuing to weigh down the economy is housing with high mortgage delinquency rates, banking with 40% of the bad debt yet to be realized on the balance sheet, the labor market as mention above and thereby a lack of consumer spending.
On a positive note, supporting the economy is an increase in exports and the fact that inventories are at an all time low, suggesting companies will need to begin producing. Aggressive monetary and fiscal policy continues to support growth but the big question is how long this can continue before inflation worries come into play.

To bring the economy back into balance credit must be allocated more conservatively. Consumption as a percentage of GDP is 70%. As credit continues to tighten, consumers will be forced to change their spending habits. In the New Economy consumers will be more likely to save and purchases will rely more on cash or debit cards.

An interesting trend is the changing structure of the labor force. Currently the average work week approximately 34 hours, therefore companies have room to increase hours rather than hire additional personnel. When in need of additional staff, and fearful of committing to new hiring, companies are moving towards contract labor rather than employment. This trend is expected to increase, whereby workers will be selling their services to several companies rather than becoming an employee at one.

I personally left feeling hopeful. I acknowledge that we are never going back to the good old ways of yesterday but then again, I have long held the question of whether they were really that good anyway.

I am fascinated by the concept of the “New Labor Force” and strongly believe it will bring new opportunities for both employees and companies by providing a labor/job/time flexibility that can benefit both.

False Perceptions-A Destructive Force

2012-03-27T21:24:00Z

Strategic plans built on faulty beliefs are sure to fail. Change can occur quickly and the average lifespan of a business model may only be a few years before modifications or a complete restructuring is required. With that said, change does not occur unnoticed overnight -- subtle clues (that are easily recognizable in hindsight) can be observed, allowing the organization the much-needed time to adapt.

It takes passion and commitment to grow a company and entrepreneurs must believe in their dream in order to overcome skepticism. Unfortunately, sometimes the same drive and ambition that built the company can cause its destruction. Over time business leaders develop a skewed perception of the company’s capabilities and position in the marketplace. Often this is due to the business leader’s internal fear—they will hold tightly to what worked in the past afraid to change, even if all evidence suggest the need for a new approach.

Successful strategic planning requires rigorous thinking and honest assessment. To avoid false perceptions, historical financial data and past performance is included in the process. People can lie to themselves, but numbers will always tell the truth.

Excerpt from the book, Planning Your Company's Growth A 10 Step Guide to the Strategic Planning Process , which can be purchased as PDF format on www.BusinessSimplyPut.com or on Amazon for the Kindle at http://www.amazon.com/dp/B005EJN03G

Operations--Striving for Effeciency

2012-03-13T21:23:00Z

Operations affect every aspect of a company. If the product/service does not meet quality expectations, is not delivered in a timely manner and/or within the cost allocation, both revenues and profitability will suffer.

Efficiency is the outcome of numerous documented procedures, integrated seamlessly and completed without error or waste. Many company failures are caused by inadequate processes and communication breakdowns. Most small companies do not invest adequate time and resources into system development, and their growth is hindered accordingly.

Processes develop over time as the company grows and are often the result of errors and problems that occur along the way. A deadline is missed due to a communication breakdown and as a result, a paper flow process is created. Things go well for some time and then another issue is discovered and a process is created to solve that specific issue; eventually a system is developed.

However, this method has inherent flaws (1) the system is comprised of a series of individual solutions to specific problems and may not be fully cohesive (2) the company lost time, money and possibly even staff during the error/solution process.

Given the disadvantages of developing processes in a haphazard fashion, the more effective method is to develop the entire system right from the start. By investing in the infrastructure early on, the company will have everything in place to grow to the next level.

To purchase EBooks on this and other business subjects visit www.BusinessSimplyPut.com

Positive Conflict in Business

2012-03-06T21:23:00Z

After two decades of consulting, I can identify common problems found in most companies. As expected, procedural inefficiencies, lack of internal quality or financial control and a host of others that most would suspect. However, one theme in particular I find fascinating. It has a profound negative effect and is rarely discussed—the strong desire to avoid conflict, sometimes at all cost.

The other day I had a discussion with a young business owner who was considering increasing inventory beyond financial wisdom just to avoid a discussion with the workers regarding a lack of quality. Last week I met with a client’s employee to discuss performance issues. It quickly became evident that the lack of honest communication regarding expectations was the crux of the problem. I have seem companies accept inferior efforts by vendors rather than confronting them and salespeople quickly lowering their price before even attempting to explain the value-add gained by the cost.

More often than not, it is within the small companies that these behaviors exist as the large companies are much better at holding their ground. Large companies have learned how to overcome the fear of conflict by passing responsibility onto a third party, “it is our policies” whereas small companies make each discussion and word “personal”.
Conflict can either be beneficial, spurring innovation and creativity or destructive, causing discord and acrimony. When used in its positive form, conflict can provide a catalyst for change. A popular term that illustrates the positive use conflict is “the devil’s advocate”. Such applications suggest a conflicting view is being presented in an attempt to provide a much-desired opposition. This process involves uncovering truths that if left undiscovered may have allowed an unsuccessful idea to be taken to fruition.

When conflict arises in a relationship the process of resolution can lead to an increased understanding and renewed commitment. In fact, it is not unusual to have relationship bonds strengthened by this sometimes-intense interaction. This can be experienced on both the individual and organizational level.

To those who are more open emotionally, conflict provides an opportunity for self-analysis and introspection. The well-known saying, “if you’re not part of the solution you may be part of the problem,” has great application.

Small businesses –the cost of getting financing

2012-02-28T21:22:00Z

Bank financing has long been the coveted funding source offering lower interest rates and eliminating the need to forfeit equity. With banks balance sheets leveraged with questionable subprime loans the bar has been raised and many small companies that could have received bank financing a year ago --cannot today.

In conversation with a banker from a local regional bank (one that was fortunate to have avoided the mortgage debacle) we discussed the increase of loan volume from companies who have been asked out of their current bank. Many of the loans are good low risk loans, my banking associates said, but their current bank needed to reduce their leverage.

Several asset based financiers and other alternative lenders I spoke with said they also are experiencing an increase in loan volume and are able to charge higher interest rates for low risk loans. As associate who is involved in leasing said last year he was asked to compete with banks on interest rates, whereas today he is simply thanked for doing the deal.

This was further expressed during a meeting with a hedge fund manager who provides debt and equity financing to companies. He said he was getting equity type returns on what was actually a low risk loan.

The small companies that are still able to receive funding are paying more for their capital. With that said, small companies are less likely to pass the charges onto their customers, resulting in margin erosion.

Does intuition have a place in corporate decision making?

2012-02-21T21:22:00Z

Intuition is a difficult concept to grasp for those who perceive the world through only the five senses. C. G. Jung in Psychological Types defined intuition as being “perception via unconsciousness (1923, pg 568). Many define existence as being only what they are consciously aware of. However, its lack of distinguished substance or form does not undermine its existence or usefulness. Intuition has played a crucial human existence since the beginning of time. Humans have avoided danger, made new discoveries, proved new theories and predicted future outcomes, all because someone had a “sense” about something. It has been argued that the diminished reliance on intuition and replacement with only that, which can be proved by science, has caused mankind harm. Steve Hagen, in his book Buddhism, Plain and Simple, describes bondage as conceiving the world only through the windows of our five senses (1997, pg 60) Whether or not it is recognized or labeled as such, intuition is deeply embedded in our society.

We do not need to be consciously aware of intuition in order to apply it to our lives. Often we unknowingly accept information that comes to us without our conscious awareness. Its method of delivery does not undervalue its usefulness. Mario Bunge, in his book Intuition and Science describes intuition as being "all the intellectual mechanisms which we do not know how to analyze or even name with precision, or which we are not interested in analyzing or naming" (3, p. 68). Businessmen, consultants and economist recognized the importance of intuition. Even if they do not label it as such, it is common to hear discussions regarding its application. A businessperson has a natural instinct for creating financial success. A marketer senses a customer’s response to a new product line. Stockbrokers understand intuitively the flows of the market. Financial analysts often speak of both feelings and statistics when making stock predictions. A good reporter can smell a story. They act on a hunch only to find they are in the right place at the right time.

In fact, intuition has had a longtime standing in business theory development. Keynes, the famed economist once wrote:

“And where our experience is incomplete, we cannot hope to derive from it judgments of probability without the aid either of intuition or of some further a priori principle. Experience, as opposed to intuition, cannot possibly afford us a criterion by which to judge whether on given evidence the probabilities of two propositions are or are not equal” (17, p. 86).

So you say what is the point of discussing intuition in a business strategy blog?It is to bring to mind one simple thought. Globalization has dramatically changed the playing field. Many of the age old barometers of thought are coming into question. Currency and other stock market indices are even being re-evaluated to identify if the conclusions from their behavior patterns still hold true. Forward looking, successful decision making may require business leaders to reconsider all possibilities. In a global and sometimes complicated new world order, it may require use of all senses--those commonly accepted and those not!

What is the American dream now—and is it really worth pursuing?

2012-02-14T21:22:00Z

I was born in 1964 –the trailing end of the baby boomer generation. Unlike my fellow boomers at the opposite end of the birth scale (born in 1946), as a child I was not as influenced by the emotions of the war and the ensuing years of jubilee that followed. By the time I came to an age of understanding, such events were already written in history textbooks and to me appeared several lifetimes away. However, one sentiment did remain ingrained in my mind—the concept of The American Dream and specifically my birthright to experience it.

On numerous occasions throughout my life, I have reconsidered my relentless pursuit. Now in my mid-forties I have discarded the two-car garage, white picketed fence for other self-fulfilling interest. Residing in a high-rise in Los Angeles, I respect the fact that land availability is not as abundant as it was in the small town where I was born. Although remaining respectful for those who still embrace the dream, as I sat through another difficult evening of news with Freddie and Fannie being added to a list of potential causalities, I began to question the cost inherent in its’ pursuit. Simply put, there are too many stressed out consumers who epitomize the American Dream—the ability to buy things, things and more things. Now their home owns them –and their closets are running over with “stuff”.

My thoughts were further exemplified by a Marketplace report interviewing a family who had just purchased a new home. The new owner discounted the increase in cost stating that the pride he feels owning his home and his daughter’s ability to decorate her room are well worth the financial sacrifice. While listening I could not keep from asking the question—at what cost? As a society if we define freedom and pride as the inherent outcomes of home ownership then we cannot be surprised when people try to achieve such a worthy goal independent of the financial feasibility.

Returning to my thoughts about “The American Dream” perhaps there is another angle to the subprime mess which we must be brave enough to explore. It may be time we break the news to our children—the days of backyards, swimming pools and two-car garages may be coming to an end. I suggest instead we define a new American Dream to pursue—one about balance. The ultimate outcome would be to earn enough money to sustain basic necessities and a few luxuries while having time to spend doing the other things that really matter, whatever that means to each individual.

(My minimalistic approach was influenced by backpacking adventures where I have gained a new understanding of how little it really takes to survive. )

The Process of Decision Making

2012-02-07T21:21:00Z

Leaders must make decisions on a daily basis. Some decisions are simple, require little thought and can be made using experimental data, learned knowledge and gut instincts. Contrarily, other decisions can have long-term consequences on the future direction of the company and thereby demand deeper strategic thinking and analysis.

Unfortunately, too often leaders do not distinguish the level of analysis that must be performed based on the future impact of the decision. This results in a negative impact to the company, as decisions that should have involved in-depth analysis are made with more of a “shoot-from-the-hip” mentality and the consequences become evident as hindsight proves invaluable. This is especially true in middle market companies, which characteristically are void of executive boards that assist in the vetting process.

In larger corporations key decisions require upper management sign-off and possibly board or committee approval. With such policies in place, in theory, the outcome has a greater chance of success since the various angles are considered and the people who have the greatest knowledge or impact on a decision are included in the process. In middle market companies however, a solo process is often involved and decisions are commonly made sporadically, without adequate contemplation or sufficient data. In doing so, these decisions are often misguided and result in unintended consequences.

It is crucial that company owners and leaders first identify the level of thinking the decision requires and recognize their strengths and weaknesses in the process. Through such acknowledgement the leader can establish proper decision making methods that predetermine the level of strategic thinking and outside expertise that it requires. Given the fact that middle market companies inherently lack board structure and review, company leaders need to become self-disciplined, employing an internal policy that guides the process of decision making. Such internal checks and balances can ensure that the right amount of data is collected prior to execution. The key in employing such ideology requires a well-defined threshold on what can be decided upon immediately using past knowledge and gut instincts and what requires further investigation, analytical assessment and possibly outside guidance and expertise.

Development of such thresholds is unique to the company and the decision maker. It depends on the leaders’ expertise and the potential impact the decision can have on future company operations. For example, execution on a new product line requires marketing, operations and financial acumen. A leader with a strong sales background may be capable of defining market demands but should consult outside expertise when forecasting profitability. Commonly middle market companies make the fatal mistake of responding to the market demands at the expense of profitability, as true cost accounting is not employed. On the flip side, financially minded leaders may have thoroughly calculated ROI only to realize that the selling price point required to satisfy the financial model is not market centric. In this case, the decision makers would have been well-served if they had defined their threshold in advance, and consulted with others in the company or gained outside expertise prior to making the final decision. By employing a “decision strategy” a middle market company can emulate the board-like structure of their large corporate counterparts and in theory, make better decisions.

This blog could not be complete without heeding one warning about corporate “board emulation”. Lately we have heard about corporate boards that have been “asleep at the wheel”. Perhaps middle market companies can use the decision making threshold concept, as expressed herein, to set a new standard of effective decision making. In this they can demonstrate true and effective cooperation between thought leaders, experts and company decision makers in a way that someday large corporations will be looking down market to emulate their smaller counterparts.

What is strategy?

2012-01-31T21:20:00Z

Company owners and managers often believe they are engaged in strategic activities when in reality they are not.

A description of thestrategy-driven organization

The strategic plan must determine how to create value for shareholders and other stakeholders
Strategy is about positioning the organization for sustainable competitive advantage
Strategic determines which industries to participate in, what products and services to offer and corporate resource allocation
Strategy is about the overall vision and goal of the company. The basis on which the company will compete (price, features, etc.) who will be considered competitors, what products and services the company will offer
Growth strategies need to consider the amount of access to financial capital, human capital and other available resources in relationship to market opportunities

Strategic Marketing

Requires an understanding of your industry, especially emerging trends.
Requires an in-depth understanding of your target market, why they choose to buy your product/service and what messages they are hearing from your competitors
Strategic marketing programs are aimed at achieving specific results (branding, sales, conversion)

Tactical Marketing

Tactical is the execution of the strategic plan-the budget allocation is applied based on the activities identified (direct sales base,collateral. PR/Media placement, trade shows, etc.)
Tactical marketing is the ROI barometer-it is where the success of the strategic plan is measured

Purchase ebook BUSINESS SIMPLY PUT Planning Your Company's Growth: A 10 Step Guide to the Strategic Planning Process www.BusinessSimplyPut.com

How to compete when companies are faced with an unavoidable and inevitable erosion of their market

2012-01-24T21:20:00Z

The change in market dynamicsmay be caused by intense competition locally or abroad. Companies that havesuccessfully competed may suddenly find themselves in a new competitiveenvironment. When this occurs they have several options, they can search for a capitalinfusion, in order to create a new or refined business model, change manufacturingprocesses through off shoring or outsourcing, or close operations altogether.

It could be argued that eachand every company will face such a dilemma; it is not "if"--just "when". Thisstatement has been made evident as many of our corporate darlings that have stoodthe test of time, are currently struggling to stay alive in the competitivelandscape. America'sbeloved industries - the airline industry, the automotive industries are allunder aggressive attack.

So how does a middle marketcompany continue to strive or at least compete when they look around them tofind the customer's preferences have changed, the supply chain has evolvedthrough more efficient means of production than the one that they currentlyembrace or the demand has shifted entirely?

Middle market companies needto be strategic in their thinking. Focus on ways to take advantage of localmarkets first, creating a dominance and cash flow to assist as they expandregionally--nationally--internationally. Companies often make the mistake of tryingto expand before they have created a solid footprint.

What is a Leader

2012-01-17T12:01:00Z

The organizational culture can have the profound ability to enable or hinder the company from achieving its strategic objectives. A company can benefit greatly by identifying the kind of culture that supports the mission, vision and strategic intent, and them concentrating efforts towards developing that those mores.

There is nothing more powerful than the human spirit. When it is allowed to thrive it has the ability to move mountains. However, as strong as the spirit can be, it can also be fragile and easily damaged.

I believe that the most important gift that a leader can give to others is an opportunity to discover and nurture their talents. Those who I have supervised have sensed my compassion and willingness to work alongside and support them in the development of their personal goals.
In order to reach this sacred point, employees must be provided with the safely and security to express their talents. Therefore, I believe in providing others with a safe working environment that allows and accepts mistakes.

I encourage risk-taking while at the same time I teach accountability. Budgets are provided as a means of defining the overall parameters and to create accountability to the organization. The individual determines the budget breakdown for each project; thereby, allowing them to choose the best means to achieving the organizational goals.

Although any changes have taken place in the business environment one things has remained consistent: the qualifies that make a true leader.

Lori Williams has released two new e-books available in PDF format and on Amazon for Kindle. Visit www.BusinessSimplyPut.com and click in ebooks to learn more.

Executives need to rely less on “doer” assistants

2012-01-03T10:40:00Z

As a growth strategist advising companies and owners, I have always counseled mid to high-level executives to delegate lower-level tasks so that they could fully concentrate on “heavy lifting” brain work. In the old days (circa late ‘90s), an executive’s time was best spend in the meeting and not scheduling the meeting. Support personnel are there to answer phones, make travel arrangements and prepare meeting documents. This was a basic management principle introduced in the ‘80s that had long been converted into gospel.

All my professional life, I’ve heard my inner consulting voice whispering “Delegate, delegate, delegate.” Of course, being a bit on the controlling side, I constantly find myself handling most of my own office tasks like scheduling, requesting information, returning phone calls, researching etc. Of course, I never want to be accused of being the “plumber with a backed-up sink,” so I decided to heed my own advice.

Two months ago, I started making an audit of all of my mundane daily activities in order to determine what I can safely pass along to assistants. After all, that’s what assistants should do, right? I wasn’t too far along into my audit before I start questioning the logic behind delegation. I am now convinced that the basic formula for determining what tasks are worthy of delegation has been forever changed by technology. When using a time and efficiency scorecard, self-reliance deserves better marks than delegation. During the course of my experiment, I discovered that it was actually taking me more time to explain and delegate a task than to just use available technology to take care of it. It seems that most of the daily activities that would have been handled in the past by an assistant are now best handled with the aid of few handy electronic tools.

Let’s consider some of my most critical daily duties:

First task: Scheduling a Meeting

Usually I handle all of my calendaring through Microsoft Outlook. It takes minutes to record an appointment, email an invitation and then hop on the Internet to send a list of directions to my PDA using Mapquest.com. Taking the slow route, I first emailed my assistant about my intent to schedule an appointment. After discussing the merits of various preferred dates, we proposed and confirmed an appointment with my client, who called later that day to reschedule. Another conversation with my assistant on preferred dates and the chain of events rattled again. In the end, it took more time and effort to work through my assistant than if I had just called my client directly.

Next Two: Answering the Phone/Returning a Call

Next, I charged my assistant with two tasks that were created just for delegating – answering the phone and returning a call. Surprisingly, they turned out to the biggest time wasters. Callers needed to speak to me, not my assistant, so there wasn’t much she could tell the caller other than that I would get back to them, which they probably could have guessed anyway. Additionally, there wasn’t much lag time between my assistant’s return call and mine, making the whole process seem even more futile. I wasted more time asking my assistant if she had called someone back and what they had said, when I could have just asked them myself. Furthermore, I questioned whether the extra “customer service” was actually more of a nuisance to the caller. There was a time when an unanswered phone was seen as unprofessional. However, today I think if given a choice between speaking with an assistant and just leaving a voicemail, I would much prefer the voicemail. That way, I can leave my message exactly the way I want it and know that it is delivered intact just the way I recorded it. Most assistants just inform you that your client is out of the office and ask if you’d like to be transferred to voicemail.

Last Chance: Good Old-Fashioned Research

Before reverting to my modern ways, I decided to delegate one last task – researching publications for advertising prices.

After emailing a lengthy paragraph of instructions to my assistant (I’m big on clear and precise instructions), my assistant responded with a list of links to publication websites. While meant to be helpful, I found it difficult to navigate through the maze of links. It was like starting in the middle of a book and having to figure out what part of the story you’re in. In the time it took to figure out where the links were leading me, I could have found my information through a simple Google search and moved on to my next task.

I’m not saying that assistants aren’t important or needed – somewhere in Downtown Los Angeles a corporate assistant is holding a triple vanilla soy latte and shivering in fear – no, not at all. Today’s executives need a new breed of assistant. Gone are the days of doers. What executives need are thinkers. Decades ago, technology replaced the factory worker. Now, the task-minded assistant has been replaced with online tools like Google, Map Quest, ACT and others. The modern assistant should be able to make decisions and use deductive reasoning. Given the amount of information readily available at the click of a mouse, they must have the aptitude to research and identify options, make appropriate evaluations and then present executives with a well thought-out summary in an easy-to-read format (not just web links).

I’ve since returned to my tech-centered, self-controlling ways. I can handle mundane lower-level tasks; what I really need is someone who can take on some of this "lighter" brain work.

Lori Williams has released two new e-books available in PDF format and on Amazon for Kindle. Visit www.BusinessSimplyPut.com and click in ebooks to learn more.

Exclusive Contracts with Distribution Companies and Channel Partners

2011-12-27T10:35:00Z

Manufacturing companies struggle with the question of whether they should grant exclusive rights to dealers or distributorswho are selling their products.

In order to properly answer that question, companies need to thoroughly analyze both the ROI and the opportunity cost of the relationship. This requires considering the potential market share gained/lost with the relationship. In other words, how much market share do they currently have and how much potential market share can they capture with an exclusivity.

For example, if you are a manufacture and one of your dealers represent 1% ofthe potential market share in their geography, do you really want to offer themexclusivity? If you offer exclusivity and they do not work theterritory properly, you have removed 99% of the markets potential. For this reason, exclusivity should be granted based on each dealers ability to capture the highest market share. Contracts should have renewal dates so that the relationship can be continuously monitored and reevaluated.

Lori Williams has released two new e-books available in PDF format and on Amazon for Kindle. Visit www.BusinessSimplyPut.com and click in ebooks to learn more.

How can you transfer a leadership competitive edge to the strategic alliances and strategic partnership?

2011-12-20T10:36:00Z

Thiswill become especially significant as companies move towards outsourcing and independent dealer/distributors in order to grow the business. Many independentcontractors, smaller companies and even large vendors may participate inthe completion of the final product. It will be imperative than those involvedmaintain a level of commitment representative of the main company.

I personallyexperienced the difficulty of this in developing my advertising agency. Ascommon in the industry, we utilized many freelancers. We were constantlystruggling to maintain our desired level of customer service when others didnot always follow through.

So how do you ensure that your firms' desire for quality and customer service transfers to all the partnerships--you incorporate the same process and monitor them as you would if they were directly under your roof. Meet with each partner with a goal of creating a seamless existence. Ask their opinion--adopt similar forms and processes, implement a Q&A process that crosses all borders. Your partners will more than likely be happy to contribute as it is also in their best interest. On a last note--if they are unable to perform find someone else as there is always another firm willing and capable to take their place.

Lori Williams has released two new e-books available in PDF format and on Amazon for Kindle. Visit www.BusinessSimplyPut.com and click in ebooks to learn more.

Due Diligence for a Merger and/or Acquisition

2011-12-13T10:34:00Z

Preparing for a merger and/or acquisition requires due diligence in the key areas: finance, marketing, operations and management.

Finance--gather all financial and legal documents. Check key ratios and benchmarking statistics--be prepared to explain any unfavorable results

Marketing--know the potential market share and the percentage of your market that you have captured. Be clear about your client base and why they buy. Know the ROI on your marketing efforts.

Operations--know profit margins and make sure you are following proper cost accounting methods. Have processes and procedures clearly documented.

Management--make sure all key executives are clear and consistent with the vision of the company and can clearly articulate the strategy

Lori Williams has released two new e-books available in PDF format and on Amazon for Kindle. Visit www.BusinessSimplyPut.com and click in ebooks to learn more.