Join Us for the February ITB Partners Meeting featuring Paula Fowler
Whether you are an Entrepreneur, an Employee or in transition, Strategic Planning is important to your success. Get ready for 2020 and learn the fundamentals from Paula Fowler, Six Disciplines Coach, and Predictive Index Certified Partner, offering small business owners tools to align people strategy with business strategy to achieve business results. Paula will present:
“It’s 2020 – What’s Your Plan?”
About Paula Fowler:
Paula Fowler
Paula is a strategic leader with a proven ability to create a company-wide vision and drive business results. Over 20 years of management and consulting experience in small to mid-sized businesses across a broad range of functional areas, including sales, marketing, finance, manufacturing, software development, operations, HR and customer support. Skilled as an internal consultant in analyzing existing operations and implementing strategies, processes, and technology to improve company profitability. Uses Predictive Index talent optimization tools to develop an organizational design, hire, inspire and drive team performance. Linkedin
Are your children ready to take over your business? The answer I usually get is something like “No, she has only been in the business for 10 years, she’s not ready to run a business.” Or, “He will get it eventually, but there is no rush.” Exit planning and succession planning are critical to a smooth sale and transition, but they are too often ignored until it’s too late, especially when it comes to family business situations. Are you burying your head in the sand because you are uncomfortable planning to leave the business?
You don’t have to leave tomorrow. At the same time, starting early will help you think through a variety of options to find a structure that best fits your needs. An early start will also provide enough time to talk through key issues with family, inside and outside of the business. The issues can be thorny ones when dealing with the family business, but time can bring everyone together.
Don’t leave a mess for your spouse, children, and employees. We will ALL exit our business at some point, one way or another. The process of selling is very complicated, and it will take much longer than most owners expect. Family business transfers are especially complex.
Again, you don’t have to rush out the door just because succession planning begins. But your family and employees will be more engaged knowing that you are laying out a game plan. If they are not yet ready, start now and include a plan for them to get ready. You may still think of them like this, but they really may be more ready than you think.
It takes a huge toll on morale when your children lack specifics and any semblance of a timeline. We routinely hear from adult children of business owners who are beyond frustrated at the lack of a real plan as to how they will eventually start taking steps to succeed Mom and Dad. They don’t need it to happen next week, but they need to know how and when. And, yes, what they need to do to show you that they are ready.
They may never be ready. However, getting an early start on talking about these issues will help you determine whether that is the case or not. You may find that they don’t want the family business, even if they would be capable. Either way, you need to know that as early as possible.
Get your family engaged in these complex issues. The right conversations will lead to the engagement that carries on your business legacy for years to come. Another significant benefit to family business succession conversations is that with a plan in mind, business value growth becomes a lot easier.
Let us know if a conversation about your specific succession planning situation would help you move forward.
‘Show me a good crisis manager, and I will show you someone who creates a crisis to manage.’
Warning – Toxic Person
It’s Saturday morning. I just received a text message from my friend Faith. She forwarded a message from a colleague she calls ‘Hair-on-fire.’ The text she received was sent at 4:45 PM yesterday, Friday, surfacing another crisis. ‘Hair-on-fire’ strikes again! Fortunately, Faith was engaged in another activity, so she didn’t see the text and wasn’t drawn into a last-minute waste of time. As I mentioned in my post last week, this colleague has a habit of creating a commotion late on a Friday afternoon. Just imagine, it‘s the end of the workweek and you’re ready to ease into the weekend. You may have plans for the evening, anticipating some well-deserved fun and relaxation. As you’re making the transition to ‘personal time,’ you’re assaulted with an urgent issue that requires you to revert to ‘working mode.’ Instant psychological whiplash. I call foul! This behavior strikes me as manipulative and narcissistic. It appears that “Hair-on-fire” uses this tactic as a control mechanism to manage her matrix team. From my experience, she probably believes that being a good crisis manager will result in recognition by senior management. Early in my career, I learned something about crisis management. My most important takeaway was: ‘Show me a good crisis manager, and I will show you someone who creates a crisis to manage.’ This topic is of great interest to me.
A thesaurus search of “toxic” reveals synonyms related to poison, something to be avoided. As with any poison, exposure to toxic people should be minimized whenever possible. How do you know you are dealing with a toxic person and how does one cope? Exploring this matter further will help us become more productive and effective. It will help you create a healthy workplace. The starting point is to identify toxic people by their behavior.
ATTRIBUTES OF A TOXIC PERSONALITY
Takes no responsibility for their actions – puts the blame on others
Manipulative
Never apologize
Judgmental – highly critical, will negate your self-esteem
Make you defensive
Will not support you
Inconsistent
Narcissistic – Must be the center of attention
Do not listen
Negative outlook – never a positive word, project their emotions on you
Never admit defeat – never wrong
Will not go out of their way for you
Present a victim’s mentality – emotional blackmail
Always have ulterior motives
They are mean – say things to hurt you
If you label someone as a ‘Drama Queen’ you’re dealing with a toxic personality. They don the victim role to manipulate you into doing things for them. You dread being with them as they drain you of your energy, creating mental exhaustion. These encounters make you feel bad or disappointed by your inability to cope. Toxic people are like vampires sucking the life out of you. The best advice I’ve heard is to be empathetic but don’t necessarily hang with them. Set boundaries. Don’t feed the beast by becoming engaged in their drama.
I find it difficult to understand why anyone would let toxic people into their life. I must be blessed as I cannot think of any truly toxic people that are part of my business or social circle. Sure, there are people I know who may exhibit one or more of these traits from time to time, but I cannot say that I have any toxic entanglements. It may be due to my experience, or maybe it’s my filters. However, there are people close to me who frequently deal with these personalities. Fortunately, I can help friends, family members, and associates work through and detach from these people.
Faith, for example, has no choice but to work with ‘Hair-on-fire,’ as they are members of the same team. Faith must adapt and cope with the situation.
Although it’s not the focus of this article, it must be very difficult if the toxic person happens to be a family member. They might not be able to change but you can do things to minimize the stress they create. Limit your time with them or end the relationship.
It is said that you become the average of the people with whom you most frequently associate. This refers to your behavior, your physical condition, professional success, etc. If you understand that toxic people are made, not born, you know their behavior may be contagious. I am fortunate that I attract people like me. I am generally a positive, and optimistic person by nature. Although I don’t have toxic people in my circle, I do interact with them from time to time. My experience is my shield, my intuition is my internal warning device. Toxic behavior is a big red flag. I find that life is too short to become entangled in their pathology. If you recognize any of these attributes in your behavior it might be wise to seek help to nullify them.
For Further Information:
Dr. Karl Albrecht. He has a short diagnostic you can access online which will help you determine if you were in a toxic relationship.
I hope you enjoyed our point of view and would like to receive regular posts directly to your email inbox. Toward this end, put your contact information on my mailing list.
Your feedback helps me continue to publish articles that you want to read. Your input is very important to me so; please leave a comment.
One of the benefits of a healthy economy is that people seem more optimistic and happier. Clearly, this has been the case for the past few years, especially 2019. By and large, the people I met and interacted with last year were much more positive about the future for their businesses. They were busy landing new gigs and completing work for their clients. They were pleasant and easy to be around.
That’s not to say that I didn’t interact with people or learned of situations that were most disagreeable. My friend Faith often speaks of a coworker she calls “hair on fire.” This person has a special knack for surfacing a crisis near the close of business on Friday afternoons. Faith finds this irritating, a waste of her time. In this respect, “hair on fire” is toxic.
One of my clients wasted a significant amount of time working with a potential strategic partner who promised her the moon. This person talked about entering a joint venture partnership whereby they would split the profits from their projects. My client began working with him in good faith but continued to ask for a document to define their relationship. The more my client asked for an agreement, the more belligerent he became. That document was never delivered and my client realized that her counterpart was insincere. In the end, he exploited her expertise without compensation. Fortunately, her investment wasn’t exorbitant.
A vendor for another client put his business in turmoil by failing to show proper accountability to his minority partners. He didn’t include them in important decisions and was not forthcoming. Not surprisingly, his partners resigned, taking funds owed them out of the company’s bank accounts. This resulted in additional problems for the vendor as those funds were designated for merchandise already purchased. The list goes on.
As my business is about helping my clients become more effective, it’s important to help them understand the warning signs of a toxic relationship. There is great value in avoiding the cost of a pathological relationship, so understanding the warning signs is useful. Toward this end, I invested time in reviewing articles that discussed the personal attributes shared by successful entrepreneurs. A summary of the attributes promoted is listed below.
Attributes of a successful entrepreneur:Passion, strong work ethic, strong people skills, determination, creativity, competitiveness, self-starter, open-minded, confidence, disciplined, salesmanship, communication skills, peacefulness, poised, intuition, adaptability, opportunistic, resilient, bold, management skills, focused, accountable, skeptical, and a listener.
I find it interesting that these attributes not only apply to success as an entrepreneur, but they are also relevant to an employee, a senior executive, or for one’s private life. The best summary I found was from Brian Tracy who identified five qualities: Self-discipline, integrity, persistence, clear sense of direction, and decisive and action-oriented. Of the articles I surveyed, Mr. Tracy was the only author who identified integrity as a key attribute for success. I find that surprising, however, I agree completely. From my perspective, poor temperament and a lack of integrity are the primary indicators of a toxic relationship. If that’s the case, how can one minimize their exposure to toxic people? How can one resolve that question before entering into a business relationship?
When coaching Independent Consultants, I advise them to create an entry-level vehicle as a lead marketing strategy. This is a small project with a short time frame, reasonably priced to present a low-risk profile to the prospective client. This project will validate your capabilities as you work to establish a relationship with the new client. These entry-level projects are opportunities to build trust, the foundation for a longer-term relationship. If a relationship cannot be established, neither party has lost much in the process.
I believe this is good advice for entering into any relationship. Begin with a small commitment to validate the benefits of a relationship. It’s the best way to manage risk. Of course, there is a lot of work you can do to ensure a viable working relationship even before landing that initial contract. As your prospective clients are interviewing you, you should be interviewing them. It is advisable to talk with the client’s vendors and or customers to gain further insight.
Many people have great ideas and want to be in business for themselves. If they lack a few key attributes those dreams will never materialize. Be on guard so you aren’t caught in their pathology.
Thank you for visiting our blog.
I hope you enjoyed our point of view and would like to receive regular posts directly to your email inbox. Toward this end, put your contact information on my mailing list.
Your feedback helps me continue to publish articles that you want to read. Your input is very important to me so; please leave a comment.
David Shavzin created The Value Track to help business owners build value and create a path toward a successful exit. Too often, they have not built the value they need and are unprepared when the time comes to put their transition into action. In this RadioX interview, “Maximizing Exit Strategy, Understanding Value”, interviewed by John Ray on Business RadioX®: Listen to the Interview
David discusses critical issues that business owners need to understand in order to maximize the sale of their business. Exit planning is a process – not something to decide one day, and try to implement the next.
David helps business owners think through their long-term goals and plans, educates them on business value and brings the right – collaborative – advisory team around the table. He then assists in the implementation of value-growth initiatives, guiding them to a successful transition (sale, family transfer, etc.). His 7-step process improves their quality of life and allows them to exit on their own terms.
A frequent speaker on these topics, David is a CMC, former IMC Georgia chapter president and President and Co-Founder of Exit Planning Exchange Atlanta, formed to bring advisors together in a collaborative effort to serve their clients.
His early career was in banking and finance, then 12 years with life sciences company Sanofi/Aventis. He spent 4 years in corporate finance and Mergers & Acquisitions. Then, 8 years of leading teams responsible for Quality, Finance, Supply Chain, Customer Service and IT functions within a $175M subsidiary.
It’s that time again! Time to make New Year’s resolutions. I suppose I’m like most people who revel in the excitement of starting a new year. In many respects, the new year offers the promise of a new beginning or an opportunity for change. It’s fun to share New Year’s resolutions and I’m sure that we’re all serious about achieving our goals. Regrettably, within a few months, most people have given up on their New Year’s resolutions. Business, on the other hand, is a different story. Companies don’t have New Year’s Resolutions. They have a vision and objectives. My experience is that a business is more likely to achieve its goals. Why is that?
I talked with many people over the past few weeks and have learned much about their plans for 2020. My friend Faith plans to start a supper club to explore new food dishes and to get back to the art of dining at home. One of my Associates at ITB Partners has created a strategy to develop multiple blogs, monetized through advertising and affiliate programs. He realizes that becoming profitable may take as much as two years, but he is excited about his prospects.
I am working with clients who want to change careers in 2020. Some are between situations and have the flexibility to explore new options while others are gainfully employed but desire a better situation.
These conversations were most interesting. Of course, the most typical resolutions are about personal development; simplifying lives, losing weight, improving diets, and to follow a healthier lifestyle. Continuing education and developing new skills are also popular. I also enjoyed hearing from those who didn’t have plans to change anything other than to do better executing their current strategies.
My favorite morning talk show host is changing his strategy to include more knowledgeable pundits who can talk from a strategic perspective. I have a few initiatives that I want to pursue, including a seminar program to attract more clients.
While preparing my thoughts for this post, I found an article that listed 20 goals for entrepreneurs in 2020. Whereas the goals proposed are relevant for most, the focus of the article was on goal setting. The article even recapped the SMART formula. It didn’t devote any ink on how to achieve those goals. Maybe that is part of the problem.
Exploring this issue over the Holidays, I reviewed my favorite YouTube and podcast channels. One point that resonated profoundly was made by James Clear, the author of Atomic Habits. He talks about making small, manageable changes that generate other changes, which cumulatively make a big impact. I like that idea. I like the thought of finding a linchpin to provide leverage for other goals.
Another point Clear makes is that one needs a system to achieve their goals. This opinion is shared by Scott Adams, the creator of the Dilbert cartoon. Adams is much more direct as he says “goals are useless, without a system.” I concur with this point; a system is required to achieve a goal. Another word for a system is routine.
I find this to be a valid perspective! It reminds me of my early career in strategic planning and analysis. The planning process we followed included strategies and tactics (a system) to ensure the desired result. We also established timetables and mechanisms to track our progress. It was a useful process that required serious thought about how to realize our goals. We had a system. Our focus was on executing the strategy.
This year, my primary resolution is to lose the ten pounds I gained between Halloween and New Year’s Day. I am confident I will be successful, as I have a plan and a system to achieve that goal. I have several important business goals for 2020 as well. I haven’t completed the plan to achieve those goals yet. However, as I consider planning one of my greatest strengths, I am confident that I will achieve those goals as well.
Thank you for visiting our blog.
I hope you enjoyed our point of view and would like to receive regular posts directly to your email inbox. Toward this end, put your contact information on my mailing list.
Your feedback helps me continue to publish articles that you want to read. Your input is very important to me so; please leave a comment.
One of the benefits of a healthy economy is that people seem more optimistic and happier. Clearly, this has been the case for the past few years, especially 2019. By and large, the people I met and interacted with last year were much more positive about the future for their businesses. They were busy landing new gigs and completing work for their clients. They were pleasant and easy to be around.
