St. Patrick’s Day brings up thoughts of shamrocks, pots o’ gold and good luck. Is your business success a matter of luck? Or intentional value-creation?
One of the best things you can do to ensure a larger pot o’ gold when you sell your business is to hire the right people. Hiring people just like you may not be as impactful as hiring people with different strengths and skills. If you hire people to do the things you do not enjoy, it is likely that they will also do them better than you could, which allows you to focus on areas where you bring more value.
Note that hiring for different strengths and skills does not mean different core values, however. A culture built around consistent and strong core values will attract people with those same core values, and encourage those with different values to find employment elsewhere. As the leader of your business, you should intentionally create the culture in which you want to work, providing your employees with a clear picture of acceptable behaviors that exemplify your core values.
Another thing you can do to increase the value of your business is to implement systems and processes so that the business is not dependent on you or just a few people. Having written processes and procedures ensures that you can easily get new employees up to speed and expand your business. A scalable business adds value in the long-term and allows you to take those much-needed vacations in the short-term!
It takes more than luck to create a successful business. Why don’t you keep that pot o’ gold in mind as you hire the right people with the right core values and create the processes that will enable you to grow? In other words, continue to work ON your business rather than IN your business!
Do you find that you are easily distracted? Especially when you are supposed to be working on something that isn’t much fun? I generally do not procrastinate – I’m usually one of the first people to respond to a request or to tackle a big project. I can really get things done when I put my mind to them – if they are things that I enjoy doing. Head down, focused, intense, and determined are all terms that describe me when I am in that “zone”.
Then there are those things that I really don’t enjoy doing, such as administrative or repetitive tasks. I have discovered that I not only procrastinate starting on those types of tasks, I also get distracted easily when I finally start to do them. If you have seen the movie “Up”, you’ll know what I mean when I say, “Squirrel!”. Whenever they thought they heard a squirrel, the dogs in the movie would stop whatever they were doing, turn their heads and freeze, saying “Squirrel!”. After a pause, they would continue with what they had been doing previously as if nothing had distracted them. In real life, when our thoughts are interrupted, we are less efficient and effective than we would have been without the disruption.
I’ve noticed that sometimes these less enjoyable tasks take me 2-3 times longer than they should have because I have allowed distractions to take me off course. So now when I will be starting a task that I suspect may lead to a “squirrel” distraction, I promise myself a reward if I can get the task done in a focused and timely manner. Awareness is an important first step. After all, I can always chase the squirrels after my work is done!
In Florida, storm clouds often rush in when least expected. Heavy downpours occur, strong lightning, wind and rain come – seemingly out of the blue. Could that happen to your business as well? Are storm clouds lurking far away that could appear quickly and significantly disrupt your business?
What if you lost 30% of your revenue overnight?
In 2004, I had my Vistage group do an exercise where they presented a plan to the group as if they lost 30% of their revenue overnight. Many of the Vistage members pushed back on the scenario, saying it was very unrealistic that would ever happen. However, they begrudgingly did the exercise and created a restructured organizational chart and budget reflecting what their business might look like if they suddenly lost that much revenue. Based on feedback from the group, they fine-tuned their plans to ensure they were feasible. We hoped they would never need to implement those plans.
Does your leadership have plans for 70% reduction in revenue?
Several years later, the economic downturn occurred, hitting some of those same businesses hard. Several members told me that they wished I had asked them to present a plan for a 50% or 70% reduction in revenue rather than just 30% because that is how significantly their businesses were impacted by the downturn. Thankfully they had a good starting point for the changes they needed to implement since some of the toughest decisions had been identified during the exercise in 2004.
What is your backup leadership plan?
I feel that it is very important for every business to have a backup plan for what they would do if something significantly impacts the business in a negative way. Those who have a plan can more quickly take action in an objective manner, rather than letting emotion influence their decisions. Those Vistage members who had a plan going into the downturn weathered the storm much better than those who had no plan. And those who took quick action to right-size their business also survived and recovered more quickly once the economy started to pick up again.
Are you prepared for 2017?
As we move into 2017 and you prepare your plans for growth, I’d highly suggest that you also consider a backup plan in case any distant storm clouds rush into impact your business.
Have you heard the statistics about the increase in texting deaths while walking? People have walked in front of cars, walked off piers and run into walls because they are not watching where they are going. While I hope you are not texting and walking, I wonder if this is a good analogy for what is happening at your business?
Is your head down, focused on the past or present? Do you often find yourself getting mired in the detail and crises of the day? How often are you looking ahead, scanning the horizon for what’s new and where your company should be heading? The best leaders schedule time in their week for strategic thinking and long term planning. They ensure they are making time to work on the most important things, rather than the urgent.
So the next time you see someone walking with their head down, distracted by their phone, use that as a reminder to schedule time in your week to focus on the future of your business.
I recently spent a week with about 25,000 teens at a national youth gathering. You may have assumed that this posting on attitude would be about stereotypical negative teen attitudes. Instead, I’d like to share my observation of how positive attitudes that week were contagious.
Everyone who attended the national youth gathering had to walk miles each day in high heat and humidity, wait in long lines, share hotel rooms with others, and sleep very little. There were definitely many reasons to have a negative attitude (and all of us were tired and grumpy at some point during the week). However, what impressed me was how quickly positive attitudes changed everything.
These teens went around saying “Hey” to other groups of teens and giving one another high-fives. They burst into spontaneous song and dance, clapping and laughing. When someone started to complain or feel sorry for themselves, another person distracted them or got them to laugh. At one point, we had fun turning complaints into “love” statements, such as, “I love how much my feet hurt”, or “I just love sweating and standing in line”. We were soon laughing and back in positive moods.
Vistage speaker Boaz Rauchwerger often says, “Fake it till you make it!”, and these 14-18 year olds showed me how effective that approach can be. A positive attitude can be contagious. As a leader, you can overcome the negative attitudes in your company with a little effort – even if you have to fake it till you make it!
When was the last time you laughed so much that your cheeks hurt? For me and 100 of my colleagues, it was just last week. I was co-leader of an event in Boulder, CO for 100 Vistage/TEC peers from around the world. My co-leader and I selected the topic of “Creative Brilliance”, which enabled us to take the group down a path most had never experienced. We decided to bring in an expert to do a session on “Laughter Wellness”. After sharing a bit about the physiology of laughter and the impact on health, she led us through 30 minutes of laughter yoga.
At first, our “ha, ha’s”, “he, he’s” and “ho, ho’s” were forced, yet in a very short time, we were all laughing hysterically. Each time I looked at someone else doing the motions, I found myself laughing even harder. It’s amazing how terrific we all felt after just 30 minutes of laughter. The tension left our bodies, and we were energized and ready to take on the world.
It was a great reminder of how easy it can be to pull yourself out of the doldrums. When you’re having a rough day, take a short break and watch a funny video, ask someone to tell you a joke, look at the comics in the newspaper, or just remember the last time you laughed until you cried. Once you start laughing, invite others to join you so they can reduce stress and become energized as well. Laughter is the best medicine – no prescription needed!
Do you often find yourself saying you are “too busy” or that there “just aren’t enough hours in the day”? I often speak with people who tell me that time management is a challenge for them. A wise Vistage speaker once suggested that we should call it “priority management” rather than time management. I agree since we can all make choices as to how to spend our time.
The fact is that each of us has the same number of hours in each day. Some people seem to be able to find that perfect balance of time spent on various aspects of their lives and business. Others struggle to find time for important but not urgent activities. Have you talked to a leader recently who says they don’t have time to work out? Or to take a day off? Or to work “on” their business rather than “in” their business? What they are actually saying is that those things are not a high enough priority right now. If they were, they would be taking action to make time for them.
If you ever crammed for exams by pulling an all-nighter, you showed how you can shift your schedule to make time for high-priority activities. Grades were more important than sleep that night. Did you ever work so hard on a project that you realized you forgot to eat? The work was more important than your awareness of hunger. If you can put things higher on the priority list than sleep and food (which are pretty important!), then I know you can make time for those other things if you really want to.
Why not identify what you really want and then manage your time according to those priorities?
Is there someone in your company who is very much attuned to the needs of others? They seem to be able to sense things about people that the rest of us miss. Others have a way of controlling their emotions and remaining level-headed in even the most stressful situations. I suspect each of you can think of at least one person who displays those characteristics. How do they do it?
Chances are that they have a high degree of emotional intelligence. Emotional intelligence, also known as Emotional Quotient or “EQ”, is often defined as the capacity to understand and interpret the intentions, motivations and desires of others and the ability to understand oneself. EQ is often broken down into 4 core skills:
- Self-awareness — is the ability to accurately perceive your own emotions in the moment and understand your tendencies across situations.
- Self-management — involves controlling your own emotions and impulses and adapting to changing circumstances.
- Social awareness — is the ability to sense, understand, and react to others’ emotions while comprehending social networks.
- Relationship management — is the ability to inspire, influence, and develop others while managing conflict.
Studies have shown that 90 percent of high performers are also high in EQ. These are important skills for good leaders. The good news is that EQ can be developed. You can start by taking an EQ assessment to identify which areas you would like to address, then by creating a plan to improve in those areas. By focusing on increasing your emotional intelligence, you will likely increase success in both your business and personal life.