Layout Image

HOME | ABOUT | CONTACT   

Mistakes Entrepreneurs Make

By Charlie · Comments (4)
Friday, May 4th, 2012

This morning I met with over a dozen entrepreneurs from a wide variety of businesses.  We meet monthly to discuss our challenges, opportunities and, often, successes as leaders of our businesses.   The spark for our discussion this month was “The 10 Mistakes Entrepreneurs Make”, a brief posting I found from the Tuck School at Dartmouth.  You can read it by following this link.

Their list:

  • Sticking with one—and only one—idea for too long
  • Being product-driven, not customer-driven
  • Thinking legal problems can be solved later on
  • Spending money before you make it
  • Not having a clear focus
  • Catching key customer syndrome
  • Performing inadequate market research
  • Having too much overhead
  • Lacking experience
  • Maintaining equal partnerships

It is interesting that Tuck calls it the “Top” ten in the link, because the first thing we concluded was that there are many more than 10 mistakes that we have all made to one degree or another as CEO’s, business owners and entrepreneurs!  Some that we added include:

  • Under pricing our products and services – giving away the value we provide
  • Failing to find competent, committed employees
  • Providing inadequate leadership to our staff
  • Not understanding where our profits come from – missing the opportunity to manage our  business mix to improve profit
  • Thinking we can run the business well without watching the financials

Here are a couple of nuggets that came out of the discussion:

Avoiding one of these mistakes may lead the business into another issue from the list.  For instance, being fully focused on customer driven could result in key customer syndrome or to sticking with one idea for too long.  Balance is called for and this is where leadership focused on the business rather than mired in the business is essential.  This may be an overused cliché, but it is a very common characteristic we find in the CEO’s and business leaders we work with every day.  Be intentional about scheduling time to get away from the pressures and activities of your everyday business.

If you are interested in expanding the questions you ask yourself as you reflect on your business, you might want to take some time to watch the TV show “Shark Tank” (Fridays on ABC).  The difficult questions the investors are asking the entrepreneurs looking for funding may give you some ideas about the tough minded look you need to be taking at your business.

To avoid over committing to a key customer or a small group of customers, try to fall in “like” with your customers, not in love with them.  A wise mentor once advised me to never fall in love with a client: they can be gone before you know it.  If you fall in like, you will automatically take better care of your best customers while you take good care of the rest of your customers and set aside time to find new ones as well.  Advice we heard was to watch how high school students dance with each other.  Sure, they are dancing with a partner, but their eyes are also on the rest of the crowd observing what is going on in the rest of the “market” to identify where the next opportunity may be.  A great analogy, Ken!

Chris is successfully growing his business.  After four months, his 2012 revenue is already over three times last year’s full year revenue which was over three times his 2010 revenue.  One of the things he feels has been important to his success is having well defined plans:  A long horizon vision as well as a very specific month by month financial plan against which his actual results are closely tracked.  This builds awareness and a clear sense of urgency to meet the goals he has set for himself. (Also see: Will having an annual financial plan improve business performance? below)

The thing that never fails to impress me when I have the opportunity to facilitate a group of CEO’s and business owners is the tremendous value we all get from the experience, having someone to learn from and bounce ideas off, sharing our trials and tribulations.  Whether we are telling the story or listening to learn, we are always wiser and more competent as a result.

We have a better chance of avoiding the Mistakes Entrepreneurs Make.

We would like to hear your thoughts!

Comments (4)
Categories : advisory board, Business, CEO, Execution, Leadership Development, Planning, Strategic Planning
Tags : , , , , , , ,

CEO Peer Advisory Boards Build Leadership Skill

By Charlie · Comments (0)
Tuesday, February 14th, 2012

A couple of weeks ago, I posted a blog with links to several other blogs and articles on the power and value of Peer Advisory Boards like our Vistage Board (see below).  MP Mueller, founder of Door Number 3, has now posted the third in her trilogy.  You can find it here.

For additional information on Peer Advisory Boards:

Business Solutions Advisory Group

Vistage

 

 

Comments (0)
Categories : advisory board, CEO, Leadership Development, Vistage

Emotional Intelligence Makes the Difference in Effective Leadership Ability

By Charlie · Comments (0)
Tuesday, February 14th, 2012

Recently, we were fortunate to welcome Bob Anderson, of Leading Challenges, as the featured speaker at our Vistage CEO Peer Advisory Board ]. When you get a chance to look at Bob’s bio you’ll find out that he is quite a remarkable and accomplished individual (a self-contained 160 mile foot race across The Egyptian Desert?). The day really got interesting when Bob began to speak with us about emotional intelligence. We learned that our emotional intelligence and the balance between our inherent approaches to different kinds of situations contribute significantly to our success and effectiveness as leaders of our companies.  According to Fortune Magazine (June 1999): “Business leaders are no longer being defined by their IQ’s or even their technical skills. It is their emotional intelligence that makes the difference.” “It is rarely for the lack of smarts or vision. Most unsuccessful leaders stumble because of one simple, fatal shortcoming … The failure is one of emotional strength.” I believe that after spending a day with Bob, we would all agree with this quote.

I’m sure we’ve often heard someone say of a coworker or friend. “He just has a ton of emotional baggage”. The implication is that the emotional baggage is having a significant impact on the individual’s interactions and abilities. I think that one of Bob’s messages for us is that this is certainly true. However, it doesn’t have to be a negative thing.  Awareness and learning can enable a person to successfully co-exist with or even take advantage of his or her “emotional baggage”.

We learned that emotional intelligence is a set of “non-cognitive abilities” that influence us daily. EQ works synergistically with IQ to enhance performance. EQ can be learned, measured, and is what differentiates exceptional from mediocre performance in leaders as well as members of their teams.

Prior to our board meeting Bob had us go through the EQ inventory to come up with a quick measurement of the factors influenced by our emotional intelligence. Then during his presentation he helped us interpret our individual results and reflect on the impact that our EQ might be having on how we interact with others and lead our organizations.

So we had an opportunity to gain significant insight into not only how emotional intelligence is impacting members of our business teams, but also how it’s impacting us as leaders of those teams and, not surprisingly, how it’s impacting our personal lives. There were several “ah-ha” moments as members of the group realized how their interactions with spouses and families were impacted by their EQ. It was a valuable investment of our morning exploring this fascinating subject and, perhaps most importantly, exploring our own unique set of emotional tendencies and the difference they make in every facet of our lives.

If you’re interested in learning more about EQ visit Leading Challenges’ website: http://www.leadingchallenges.com/.

 

Comments (0)
Categories : advisory board, Business, CEO, Execution, Leadership Development, Vistage
Tags : , , , ,

How to be a Good Leader According to Jack Welch

By Charlie · Comments (2)
Saturday, February 11th, 2012

Jack Welch is a name familiar to almost anyone having anything to do with business today.  He was Chairman and CEO of General Electric between 1981 and 2001. During his tenure at GE, the company’s value rose 4000% and was the most valuable company in the world for a time.

I am fortunate to have had a couple of interesting personal connections to Mr. Welch:  I was president of a company in which Mr. Welch invested and he served as chairman of the board. I was repeatedly impressed with his insight and exceptionally quick mind. In addition, my father worked for GE from the time he graduated from college until his retirement 40+ years later. He was one of many beneficiaries of GE’s increased value under Mr. Welch’s leadership

This morning, while clearing out some old files, I came across a single sheet of paper entitled “How to Be a Good Leader by Jack Welch”.  I’m sorry I cannot attribute it properly as there is no indication of where I originally found it. However, I thought it might be of interest:

How to Be a Good Leader by Jack Welch

  1. Leaders relentlessly upgrade their team, using every encounter as an opportunity to evaluate, coach and build self-confidence.
  2. Leaders make sure people not only see the vision, they live and breathe it.
  3. Leaders get into everyone’s skin, exuding positive energy and optimism.
  4. Leaders establish trust with candor, transparency and credit.
  5. Leaders have the courage to make unpopular decisions and gut calls.
  6. Leaders probe and push with a curiosity that borders on skepticism, making sure their questions are answered with action.
  7. Leaders inspire risk-taking and learning by setting the example.
  8. Leaders celebrate.

It is interesting that the list is not about good managers; it is about good leaders.  There is a huge difference!

Although there are not many words in this list,  many of them are powerful. If you lead an organization, I encourage you to go back and study the list looking for the words that are particularly so. It seems to me, any of us would be very pleased to increase the value of our business by 4000%. Perhaps there is a valuable nugget or two here!

Which of these eight characteristics of good leaders have you found effective in your career?

Comments (2)
Categories : Business, CEO, Execution, Leadership Development
Tags : , , , , , ,

Can the Internet and Social Media really help grow your business?

By Charlie · Comments (0)
Friday, February 10th, 2012

The other day we were talking about what we want to do differently to grow our businesses in 2012, the topic of increased use of the Internet and social media as a marketing and advertising tool sparked a spirited discussion. However, we seemed to agree on several conclusions.

What different businesses will expect to achieve through the Internet will be different depending on many factors. In any event, sales, marketing and business development in the future will include some measure of leverage of the Internet and social media in almost every business. The Internet is today’s Yellow Pages (in addition to encyclopedia, dictionary, shopping mall, entertainment venue, etc., etc.). Generations younger than the baby boomers naturally use the Internet to gather information as simple as the phone number of the local pizza joint.

Value and the size of the investment in the product or service may have a significant impact on the direct effectiveness of marketing and sales activities through the Internet. It seems to me, the higher the value of the product or service your business is providing the less likely you are to find someone presenting themselves through the Internet who turns out to be a great client a high percentage of the time. If you are a law firm a warm referral from a current client will result in a promising prospect more quickly and a higher percentage of the time, than an opportunity that might come in as a result of someone stumbling across your website on the Internet.

It was pointed out that several years ago the conventional wisdom in the marketing community indicated that seven touches could create a good relationship for doing business. In today’s environment, it’s estimated that it takes 30 touches before a potential customer or client may be ready to do business. Without a doubt, the Internet is a great place to generate touches with a large number of potential clients at a relatively low cost.

Many of us focus on the value of effective networking and direct referrals or recommendations from those in our immediate circles as a way to build new business. In a way, the Internet is becoming an electronic networking device. I think many of us who are looking for warm referrals from our trusted contacts can effectively use the Internet to stay in touch with those in our close circles. Twitter, LinkedIn, other social media sites, our own websites and blog sites are all effective places to provide those following us with information. In addition, participating in discussions generated by the blog sites or other activities of other people can also effectively keep us in front of our network. So the primary objective of our investment of time and effort in establishing a presence on the web may not be to introduce ourselves directly to potential clients or customers, but rather to make sure we stay “front of mind” with our network.

A businessman that I highly respect is, candidly, skeptical about the effectiveness of the Internet and social media in building a business, particularly in the professional services arena. His objective is to build a relationship with a potential client, such that it’s clear that he has been positively differentiated when compared to his competition. His concern with the Internet and opportunities generated via social media is that they will attempt to line him up in a competitive situation where a decision can be based on price rather than performance. I think he’s probably right about this and if I were him I would invest more time in the warm referrals he gets from his network than in the inquiries that may come in through his web presence. However, is a very real possibility that any one of those inquiries could turn into a valued client. The trick is to be able to distinguish between prospects at either end of the spectrum. The difficult question is: can you afford not to have a presence on the Internet?

What’s your opinion?

Comments (0)
Categories : Business, Planning
Tags : , , ,

Value for CEO’s – From CEO Peer Advisory Group Members

By Charlie · Comments (0)
Tuesday, February 7th, 2012

I am faced daily with the challenge of communicating the value members get from their participation in a peer advisory group. So in this blog entry you are not going to hear from me or read my perspective on this topic. Instead, I’m going to direct you to a collection of blogs from actual Vistage members talking about their experience and the value they get as a result of the investment of their time and development dollars. The following links are from actual members and probably represent only the tip of the iceberg of what you might find on the Internet to fill in the blanks on what it means to be a CEO peer advisory group member.

Mark Kolier has more than 25 years experience in direct marketing, advertising and production. He has led CGSM Inc. into offering full advertising agency services specializing in direct and digital marketing, creative, strategy and production, by taking a media neutral approach. In addition, he founded e-commerce application YourCover.com, developed in 2001, which is continually expanding its product line. Read about his Vistage experience here: http://blog.cgsm.com/2011/12/09/vistage-%E2%80%93-a-ceo-network-that-gets-personal.

MP Mueller is the founder of Door Number 3, a boutique advertising agency in Austin, Tex. She is a relatively new Vistage member and speaks knowledgeably about the values and culture of a Vistage peer advisory board. She has written two columns that have recently appeared in the New York Times. http://boss.blogs.nytimes.com/2012/01/13/why-i-decided-to-join-vistage/, http://boss.blogs.nytimes.com/2012/01/20/its-not-quite-as-lonely-at-the-top/.

Jay Goltz, also in the New York Times blog, offers his advice on how to select the right business group. Although his blog is not specifically directed at Vistage, I recommend it highly. If you’re thinking about joining a peer advisory group; his advice is spot on. http://boss.blogs.nytimes.com/2010/05/05/how-do-you-pick-the-right-business-group/.

Please share your experience and advice with my readers. The strength of the experience is learning from each other.

Comments (0)
Categories : advisory board, CEO, Leadership Development, Vistage
Tags : , , ,

Can your business grow in 2012?

By Charlie · Comments (2)
Saturday, February 4th, 2012

At our February Executive Express-o, a discussion among business owners and entrepreneurs held at the United Regional Chamber of Commerce, we had a lively and valuable conversation about plans for growth in 2012 and what we were going to do differently to maximize success realizing our plans.

There were about ten of us around the table in businesses ranging from services to manufacturing.  Expected growth rates ranged from 10% for a well established firm to 1000% for a startup that is expecting 2012 to be the breakout year.  The majority of us are stretching for growth in the range of 15% to 30%.

Interestingly, given the wide range of businesses represented, we easily agreed on a couple of significant drivers that would impact our businesses and how we approached growth in 2012. A couple of years ago someone coined the phrase “new normal” and we agreed that the phrase clearly applies. We all agreed that anyone who is waiting for the business climate to “returned to normal” is going to have a long wait.

Creative action plans in 2012 are going to be driven by observing the market environment and the changes that are taking place. To be successful we will have to adapt. We may have to adapt our company, our business model, our approach to market, our pricing, or product line offerings. Perhaps more than one or two fundamental adaptations will be required.

The group quickly came up with the following list of specific actions they intended to implement in 2012 different from where they have been over the last couple of years

  • Focus on new and different products.
  • Incorporate different and modified routes to market
  • Implement changes in pricing and product structure – for instance: reduced prices for slimmed-down packages plus pricing on additions à la carte
  • Delegate more effectively in order to create more time for owner to invest in business development
  • Increase investment in marketing. The business owner had been investing about 1% of revenue; he now plans to invest over 3%. The increased investment will go to training and headcount focused on customer contact.
  • Modify business model adding related products and services not previously offered
  • Outsource administrative assistance in order to increase frequency of prospect contact
  • Increase use of the Internet and social media to increase generation of business opportunities

We would be interested to hear what you’re planning to do differently in 2012 to more effectively grow your revenue.

Comments (2)
Categories : Business
Tags : , , , , ,

S.M.A.R.T. Objectives Lead to Involvement and Results

By Charlie · Comments (0)
Sunday, January 15th, 2012

Many of us in the business world have heard of SMART goals or objectives. What surprises me is the number of CEOs and business leaders who somehow forget to apply the concepts when setting their own goals and objectives or when helping their valued employees set theirs. So, I thought it might be helpful to post my version of SMART.

The S.M.A.R.T. acronym outlines a proven method of constructing objectives such that the individual and the organization are focused, effective and successful.  S.M.A.R.T. refers to the characteristics of well designed and effective objectives.  They are Specific, Measurable, Achievable, Relevant and Time Framed.

Specific: Objectives need to be described in a specific way. Often we set objectives that are so loose, it’s nearly impossible to judge whether we hit them or not. For example, a statement like “I will lose weight” is too vague. How will you know if and when you’ve reached your goal? Saying, “I will join a weight watchers group, lose five pounds this month and 50 pounds by this time next year.” is specific.

Measurable: Objectives need to be measurable. For example, a sales person may want to increase his or her number of contacts. But, “make new contacts” is an ambiguous statement. A clearer objective is “Attend four networking events each month and at each event connect with at least one person obtaining an appointment for a follow-up meeting.”  It’s a clear, measurable objective. This makes it easy to see if the target has been met.

Achievable: Objectives need to be reasonable and achievable. Building on the weight loss example, success or failure often depends on setting practical objectives. Losing 15 pounds in 30 days is unrealistic (unless you’re planning a medical procedure). Losing four to six pounds in 30 days is achievable (…and healthier!). Don’t get set up for failure by setting objectives that are out of reach.

Relevant: Objectives need to be relevant. In order to reach your overarching or strategic goals the objectives of individuals and various departments of the organization have to be relevant to and aligned with those goals.   In order to be most effective and receive the desired support, be certain that objectives are aligned with the department and company goals and objectives.

Time Framed: Objectives need to have a time frame. Having a set amount of time will give your objectives structure. For example, many of us need to complete a major project or improve a key metric. Some people spend a lot of time talking about what they want to do, someday. But, without a firm due date there is no sense of urgency, no reason to take any action today. Having a specific time frame gives you the impetus to get started. It also helps you monitor your progress.

Examples:  Which will give the person / group accountable a better basis for success?

-        Reduce quality complaints and claims.  Or:

-        To advance the company’s error free objective we will eliminate 25% of customer complaints and reduce claims paid (dollars) for quality problems by 75%, as measured quarterly, Yr/Yr, by the fourth quarter.

 

-        Improve collections experience.  Or:

-        In order to strengthen the company’s balance sheet and improve cash flow, we will reduce days sales outstanding from 72 days (current average) to 65 days by the end of the current fiscal year.

 

Do you have any horror stories or significant successes using SMART goals or objectives? We’d love to hear about your experience.

Comments (0)
Categories : Business, CEO, Execution, Leadership Development, Strategic Planning
Tags : , , , , , , , , , , ,

Will having an annual financial plan improve business performance?

By Charlie · Comments (2)
Saturday, January 7th, 2012

At our recent Executive Express-o we enjoyed a lively discussion around this question. Those in attendance represented an interesting distribution of business owners from those who used a financial plan very little to those who use a plan with a high degree of discipline and focus. We started out by trying to understand what we meant by a financial plan. The traditional definition of a financial plan is one that defines expectations for revenue, expenses and net income for the business. Most of the attendees, however, really focused more on the words “annual plan”, and weren’t as focused on the financial dynamic.

We discovered a few obstacles to the effective and regular use of a financial plan:

  • “It’s just not fun.”
  • “My focus is on bringing in the business.”
  • “I tend to carry the numbers around in my head rather than on a spreadsheet.”
  • “It’s just not what motivates me. I’m really more focused on the soft side of my business.”
  • General concern:  if spending is budgeted the organization will feel obligated to spend whether the spending is needed or not

We also discovered a variety of valuable outcomes from using a financial plan:

  • Ongoing awareness of spending
  • Tight control of cash
  • Highlighting months with losses which can be a positive motivating factor
  • Increased focus
  • Keeps business owner in touch with the reality of business results
  • Results in focus on which expenses are actually contributing to revenue generation and which are not

There seemed to be a general consensus that a well-run business had an annual plan that went well beyond projecting P&L or cash flow statements. These plans included a specific, written, longer-range strategic plan, a marketing plan and a personal action plan that might even include a budget, if you will, for where the CEO and employees were going to invest  time.

What value do you find in establishing an annual financial plan and tracking your businesses progress against it?

Comments (2)
Categories : Business, CEO, Execution, Leadership Development, Planning, Strategic Planning
Tags : ,

Your Leadership Role, the New Year and Change

By Charlie · Comments (0)
Tuesday, January 3rd, 2012

What makes a CEO a great leader and great CEO?  Tenacity?  Vision?  Integrity?  We all like to think we have these great qualities; and we do, they exist in our inner CEO – (the Steve Jobs voice that goes off in our heads from time to time).  The business owners and CEO’s that I work with all have great potential for successful leadership; the issue is often some combination of balance, focus and / or priority:  all facets of their talents are not exercised consistently.  They seem to start out with a singular focus to tenaciously work harder and harder to improve the bottom line, they push the team to get the best results.  Sometimes, often all too briefly, they don their visionary hat.  Hopefully, at other times they recognize the need and make the right decision even when it’s difficult.

You probably have a strong belief that the harder you work the better your results get.  I, also, believe this is true but only to a point.  You also know that change is a part of the game.  It absolutely is!  How do you recognize when change is influencing you and your business?  How do you react to it?  How do you lead through change?  I believe that by working smarter you will get better results than when you simply work harder.  There is a trite but, I believe, true saying that to maximize results the business leader must spend time working on his business not in his business.  The most successful CEOs that I know also believe this is the case.  They invest time in planning, developing a vision for the future, setting goals and objectives for themselves and their organizations and tracking progress toward their long-term vision.

The New Year is here with new challenges!  Are you exercising your inner CEO?  Are you investing toward a long range vision?  Can you see changes coming?  Is there a better way, a smarter approach that you may not be taking?  How can you be more efficient, more effective?  Are you taking a balanced approach to the leadership of your business?  Are you effectively holding yourself accountable to lead change rather than react to it?

The New Year is a great time to ask these questions.  What are you going to do differently in 2012 that will bring positive change to your business?

Of course, because of the work I do I’m a bit biased.  I have two suggestions for you to consider:

  • Joining a peer advisory board will bring you new perspectives on your business and help keep you focused on your strategic, growth objectives.
  •  A CEO Coach is also a great sounding board for these types of questions and discussions. A CEO Coach can help you balance your view and help you think around and through “a new box” or a new idea that has been percolating.

So I ask again: What are you going to do differently in 2012 that will bring positive change to your business?

Comments (0)
Categories : advisory board, Business, CEO, Execution, Leadership Development, Strategic Planning
Tags : , , ,
Next Page »
Leadership Development Blog
Copyright © 2012 All Rights Reserved
Privacy Policy | Disclaimer | Terms of Use
Designed by The Small Biz Web Shop