As I've stated many times, I believe that our faith should not only be paramount in our lives, but that it can be extremely helpful to our business endeavors as well. Recently, I bought Tom Holladay's book, "The Relationship Principles of Jesus". Tom is a pastor at Saddleback Church, founded by Rick Warren, whose material I have used here before. (See 2 posts on 2/21/08)
This morning, as I was reading Chapter 2, "The Attraction of Lesser Things", it rang so true in all facets of my life. So, at 6am, here I am!
From scripture, Tom insists that we must put relationships with God and then others first, before our time, before things, before work. Then comes the punch line: "'Yeah, yeah, I know that', you may be thinking. We all KNOW this. The problem is not in the knowing, but in the doing." Wow, isn't it the same with us trying to grow and get better in our businesses?
How many times do we let something far more trivial get in the way of what we should really be doing? 1) We come in early to see a troubled manager, but do our e-mail first. 2) Our assistant had a bad night with her child and sticks her head in to talk, but we keep glancing at last month's financials as she speaks. 3) Your husband calls about having to discipline his top salesperson, and you read the Wall Street Journal while listening. We've all been there, some of us (like I) more than others.
The answer to making the change is to have the discipline to change our priorities. It IS in the doing! We must begin to make different choices in our relationships, and how we actually perform and value them. The fact of the matter is that when we allow competing values, instead of being disciplined and ordering them, one will always overwhelm the other anyway. So we may as well plan what we do instead of letting it happen out of balance.
Consider this, the lesser value most always overcomes the greater. Why? Lesser values take less thought, less effort, & are less stressful. So they seem easier and draw us in. We also can get through them more quickly, so in the name of getting more done, we do them first. Lesser values don't deliver on their promise, that's why they are lesser values.
Even in the workplace, relationships are more important than tasks. Think about it. Virtually all the time, when something is absolutely crucial that you get done, isn't it accomplished through others? Your board is made up of people who can at least make your life much more difficult, and at the worst remove you. Your customers must respect & trust you before they do business with you. And, as a leader, you must lead through respect if nothing else.
Let me close with this from Tom's book: "The truth is, that whenever tasks need to be accomplished, there is the temptation to make the task you are doing more important than the people for whom you are doing the task."
You like to lead, to be in charge. Will you take charge of your relationships?
Wednesday, October 22, 2008
Wednesday, October 15, 2008
Getting Family-Owned Businesses Right: Ten Principles That Will Make Every One's Life Easier
I thought it might be timely to publish a list of helpful ideas for Family-Owned Businesses. since I have worked a good deal within that discipline for many years. Many of the same problems reoccur, and successes should be built on as well. Here they are:
1) Most employees do not understand the needs of the family and what it wants to get out of the business. Bringing these out, in a professional manner, is a good solution: communicate. Owners are entitled to set the goals. There shouldn't be anything to be ashamed about, and if there is, maybe it should be re-visited.
2) Similarly, many owners, particularly 2nd and 3rd generation, don't understand how their goals might be threatening to the employees. If , for example, children are to be groomed for future responsibility, that can be a great thing for the organization. At the same time, it can look like less opportunity for the average employee who wants to get ahead.
3) To maximize morale, promotions should be earned not given. Don't misunderstand, the owners have every right to promote themselves first, they just need to realize that there will be consequences in loyalty and camaraderie if they do so. Sargento does a great job with this. Lou Gentine openly states that the family member will get the nod if 2 people are very close & competing for the same position. At the same time, much is expected of the family member, and excellent performance will be rewarded in everyone.
4) There has to be a plan. So much of the time, things just happen within the family. I have seen children promoted with little or no training or preparation. Perhaps someone left the company and the hole was plugged with a family member. However, if the person is untrained, or perhaps doesn't even want the position, it can be very painful for everyone involved, especially the family member. Plans create confidence, individually, and in the company.
5) Training is a must. We've already seen how Family Owned Businesses can be misunderstood by everyone. A sound training program, for the employees as well as the family members, will put everyone on the same page. No frustration, no misunderstanding, & no disappointment; it's all out in the open. It might be disagreed with, but it still will be respected.
6) There should be a written agreement for the business entity. If this document is well designed, it can help ensure that the owners understand their obligations to each other and the organization, their duties within, and their rights. It should include things like how the business will be managed and controlled, buy-sell provisions, and how distributions will be made to the owners.
7) There needs to be a strong, documented compensation plan for the company. Job descriptions need to be created for all positions, then rated, and then pay grades established. This is a good thing for all organizations, but especially Family Owned Businesses. This is what will establish standards and how people are paid, which in turn will relate directly to the owners, if they work within the business.
8) After #7 is established, it sets the table for what the working owners will make, and eliminates the horrible morale issues that can occur if family members are paid differently. Let it be distinguished here that owners are absolutely entitled to distributions from the business, but these MUST be separate from what is earned from their work.
9) Strategic Planning, involving the owners, is very helpful. Unless the owners, especially 2nd and 3rd generation, are very well versed in the business, including the history, they should probably have more of an observer role than be on the Strategic Planning team per se. This will allow them to learn as well as buy into the process. Knowing where (and why) the company is moving in a particular direction is critical for the owners.
10) Succession Planning is critical. Because this may be an unpleasant subject, it is often delayed. If so, the consequences can be staggering. It must be laid out to allow for no misunderstanding and disputes. It needs to be done BEFORE retirement, or death, primarily to have all the players present and in good mental and physical health. To have mom or dad present at the time these decisions are made also often adds more stability to the situation.
This is not an all inclusive list by any means, but one I've found to be helpful. My hope is that you have found it so. Please feel free to add any items you see fit, in your comments below.
1) Most employees do not understand the needs of the family and what it wants to get out of the business. Bringing these out, in a professional manner, is a good solution: communicate. Owners are entitled to set the goals. There shouldn't be anything to be ashamed about, and if there is, maybe it should be re-visited.
2) Similarly, many owners, particularly 2nd and 3rd generation, don't understand how their goals might be threatening to the employees. If , for example, children are to be groomed for future responsibility, that can be a great thing for the organization. At the same time, it can look like less opportunity for the average employee who wants to get ahead.
3) To maximize morale, promotions should be earned not given. Don't misunderstand, the owners have every right to promote themselves first, they just need to realize that there will be consequences in loyalty and camaraderie if they do so. Sargento does a great job with this. Lou Gentine openly states that the family member will get the nod if 2 people are very close & competing for the same position. At the same time, much is expected of the family member, and excellent performance will be rewarded in everyone.
4) There has to be a plan. So much of the time, things just happen within the family. I have seen children promoted with little or no training or preparation. Perhaps someone left the company and the hole was plugged with a family member. However, if the person is untrained, or perhaps doesn't even want the position, it can be very painful for everyone involved, especially the family member. Plans create confidence, individually, and in the company.
5) Training is a must. We've already seen how Family Owned Businesses can be misunderstood by everyone. A sound training program, for the employees as well as the family members, will put everyone on the same page. No frustration, no misunderstanding, & no disappointment; it's all out in the open. It might be disagreed with, but it still will be respected.
6) There should be a written agreement for the business entity. If this document is well designed, it can help ensure that the owners understand their obligations to each other and the organization, their duties within, and their rights. It should include things like how the business will be managed and controlled, buy-sell provisions, and how distributions will be made to the owners.
7) There needs to be a strong, documented compensation plan for the company. Job descriptions need to be created for all positions, then rated, and then pay grades established. This is a good thing for all organizations, but especially Family Owned Businesses. This is what will establish standards and how people are paid, which in turn will relate directly to the owners, if they work within the business.
8) After #7 is established, it sets the table for what the working owners will make, and eliminates the horrible morale issues that can occur if family members are paid differently. Let it be distinguished here that owners are absolutely entitled to distributions from the business, but these MUST be separate from what is earned from their work.
9) Strategic Planning, involving the owners, is very helpful. Unless the owners, especially 2nd and 3rd generation, are very well versed in the business, including the history, they should probably have more of an observer role than be on the Strategic Planning team per se. This will allow them to learn as well as buy into the process. Knowing where (and why) the company is moving in a particular direction is critical for the owners.
10) Succession Planning is critical. Because this may be an unpleasant subject, it is often delayed. If so, the consequences can be staggering. It must be laid out to allow for no misunderstanding and disputes. It needs to be done BEFORE retirement, or death, primarily to have all the players present and in good mental and physical health. To have mom or dad present at the time these decisions are made also often adds more stability to the situation.
This is not an all inclusive list by any means, but one I've found to be helpful. My hope is that you have found it so. Please feel free to add any items you see fit, in your comments below.
Tuesday, October 7, 2008
Surviving The Financial Firestorm: Ten Navigational Tools That Will Help You Emerge
With all that has gone on with our economy in the last few months, and especially in the last 2 weeks, people worry, need reassurance, and value leadership. As executives, we know that confident persons are happier & produce more than those that are stressed. Accordingly, we all are looking for tools and habits that will not only enable us to get through these times, but to do so successfully.
To that end, here are ten ideas that will help you do just that:
1) Perpetual Optimism Attitude is everything. How we lead and how consistent we are will set the tone with the organization.
2) Even Tempered Demeanor Being "cool under fire" is another trait that is contagious. If leadership is calm & confident, so will be their people.
3) Doing Your Homework Challenging times require more attention to detail. If one is able to open enough oysters, she will find a pearl.
4) Focusing On The Few Things That Are Important Trying to do too much is a common fault of we who are driven to perform. Simplify. A few critical tasks done in an excellent manner have for more impact than many things done routinely.
5) Staying Close To Your People The more stressful the times, the more important listening, coaching, and mentoring become. If they know y9u support them, they will have more courage to do what's right.
6) Keeping Discipline Paramount While we need creative thinking, we need to do it in a constructive way. The tendency of experimenting too much with new solutions can creep in the middle of times that need stability, taking money, resources, and time we don't have.
7) Celebrating Wins Catch your folks overcoming adversity & doing something well. Then publicize and reward it. All of us have challenges; those who regularly overcome them are your most valuable.
8) A Counterintuitive Budget Most executives reduce things like the marketing budget, during bad economic times. The opposite should happen. Customers make 80% of their changes during business slumps, and so, can be wooed. Look not only at personnel cuts you could make, but at key hires; more talent is available.
9) Exemplary Patience Since we are generally treated like we treat others, it is critical that we make a concerted effort to understand situations. What goes around, comes around. The use of humor is very effective here in breaking tension.
10) And Finally, "This Too Shall Pass" In the words of Og Mandino, there is a start and an end to everything. Working as a team, anything is possible.
To that end, here are ten ideas that will help you do just that:
1) Perpetual Optimism Attitude is everything. How we lead and how consistent we are will set the tone with the organization.
2) Even Tempered Demeanor Being "cool under fire" is another trait that is contagious. If leadership is calm & confident, so will be their people.
3) Doing Your Homework Challenging times require more attention to detail. If one is able to open enough oysters, she will find a pearl.
4) Focusing On The Few Things That Are Important Trying to do too much is a common fault of we who are driven to perform. Simplify. A few critical tasks done in an excellent manner have for more impact than many things done routinely.
5) Staying Close To Your People The more stressful the times, the more important listening, coaching, and mentoring become. If they know y9u support them, they will have more courage to do what's right.
6) Keeping Discipline Paramount While we need creative thinking, we need to do it in a constructive way. The tendency of experimenting too much with new solutions can creep in the middle of times that need stability, taking money, resources, and time we don't have.
7) Celebrating Wins Catch your folks overcoming adversity & doing something well. Then publicize and reward it. All of us have challenges; those who regularly overcome them are your most valuable.
8) A Counterintuitive Budget Most executives reduce things like the marketing budget, during bad economic times. The opposite should happen. Customers make 80% of their changes during business slumps, and so, can be wooed. Look not only at personnel cuts you could make, but at key hires; more talent is available.
9) Exemplary Patience Since we are generally treated like we treat others, it is critical that we make a concerted effort to understand situations. What goes around, comes around. The use of humor is very effective here in breaking tension.
10) And Finally, "This Too Shall Pass" In the words of Og Mandino, there is a start and an end to everything. Working as a team, anything is possible.
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