Category: Blog

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Too Busy to Lead?  Why? It’s What Leaders Do…

A popular Halloween-themed commercial makes fun of victims in horror movies.  It shows four terrified young people running through the night from an undisclosed danger, making the decision to bypass an awaiting getaway car and choosing to hide behind a wall of chainsaws—all while the “bad guy” watches in bemusement and anticipation.  In the end, the announcer says “If you are in a horror movie, you make bad decisions. It’s what you do.”

Leaders are supposed to lead.  That is what leaders do.  Not leading is a bad decision.  I am constantly amazed by the number of leaders who fail to effectively lead their people because they are “too busy.”  I normally run across the “too-busy leader” when I am called into an organization to help with an HR crisis such as high turnover of key employees, increasing employee complaints, dysfunctional teams, sagging productivity, increased workplace accidents, or a threatened union campaign.  In almost every case, the once passionate, motivated leader has “fallen asleep at the leadership switch” and become hopelessly sidetracked by mounting paperwork, emails and texts, production demands, deadlines, budgets, and countless meetings.

The result is full or partial abandonment of the practices that make a leader a leader.  I’m talking about the very basics– getting to know their people, listening to employee feedback, setting clear goals, providing recognition and encouragement, communicating values, vision, and important tactical information, modeling the organization’s values, and holding employees accountable.

In most cases, the too-busy leader does not become that way overnight. It is a slow fade.  The meetings start piling up, aggressive new budget goals are handed down, customers become more demanding, production issues require constant attention. There is always a squeaky wheel, and something has to give.  Often, it’s the little things that go first. Things like walking around on a daily basis to speak with employees and monitor progress; stepping into orientation meetings to meet new employees; recognizing employee birthdays, anniversaries, and achievements; taking time to listen to employees; communicating important goals and milestones, or eating a meal with the team.  Once that happens, some of the critical functions like meaningful employee evaluations, employee meetings, employee surveys, safety focus, and employee training follow suit.  The end result is disengaged employees, a frenetic, reactive workplace, high turnover, more on-the-job injuries, and the potential for long-lasting damage to organizational morale and reputation.  In many cases, the damage is so great that the organization is forced to replace the too-busy leader with a new leader who once again shifts the focus to effective people leadership.

It IS possible to be a great people leader and still meet aggressive production and budget demands.  It is well-established that highly engaged employees are more productive, produce higher profitability, attract greater customer loyalty, have lower absenteeism, have fewer accidents, and are less likely to leave for another job.

When leaders find themselves in the frustrating and unenviable position of “too busy to lead,” it’s time to step back and take a hard look at WHY they are in a leadership position in the first place.  It’s also time to determine WHAT is taking them away from the job of being a leader and HOW they can pull themselves out of the mire before too much damage is done and it’s too late to turn things around.

If you are one of those too-busy leaders who have been overwhelmed by the urgent and lost your grip on the important and significant, it is a good time for a “reboot.”  Here are some steps to consider:

    1. Review how you spend each day and how much time you allocate to people leadership practices. Are you managing your time and priorities wisely?  Where are you wasting finite time that could be spent more effectively developing and leading your team? What can you eliminate, automate, or delegate in order to maximize your time?
    2. Perform a critical self-evaluation of your leadership effectiveness and impact. Good leaders strive to be self-aware and to improve every day.
    3. Ask others in your organization to give you candid input on specific ways you can improve as a leader. Really listen.  Do not take it personally and be willing to take ownership of your shortcomings.
    4. Set specific, measurable goals for improving as a leader and hold yourself accountable for outcomes. Or, better yet, have someone else hold you accountable. Track your progress over time.
    5. Read at least one leadership book per month and incorporate best practices that you read about or learn from others. The Busy Leaders Handbook by Quint Studer is a great resource for any leader. Look for opportunities to attend (live or online) good leadership courses and workshops.
    6. Find and engage a leadership mentor. Perhaps someone in your organization or industry who you and others respect for his or her ability to be an effective leader even when the workload seems overwhelming. Be willing to learn and to change where needed.

No matter how busy you are, people depend on you for direction, example, and inspiration.  You simply cannot afford to become complacent or to default in your role.  Your employees’ livelihoods, and sometimes their lives, may depend on you.  You have the incredible power to enhance or diminish the success of your organization and the people who work there.  Real leaders make a difference.  That’s what Leaders do.

 

Mike Perkins

Mike Perkins, J.D., SHRM-SCP, is President of Frontline HR Solutions, a full-service human resources consulting firm that assists large and small employers with compliance, crisis management, conflict resolution, and coaching/training.  Frontline offers customized coaching and training programs for busy leaders.  Contact Mike at mperkins@frontlinehr.com or 833/FRONTHR to discuss how Frontline’s leadership training can help your organization improve employee engagement, increase productivity and profitability, and minimize the risk of employee lawsuits.  www.frontlinehr.com

Thank you for visiting our blog.

Jim Weber – Managing Partner, ITB Partners

 

Jim Weber – Managing Partner, ITB Partners

Jim Weber – Managing Partner,  ITB Partners

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.

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The Turning Point

Cabernet Steakhouse

Wednesday night, I did something I have not done in a long time.   I am glad I had the opportunity to do so!   When I say, ‘a long time,’ I mean long before the appearance of Covid-19. Wednesday, I enjoyed a five-hour dinner meeting with a friend and his business associates.  The venue was my favorite Cigar-friendly Steakhouse in the Northern Suburbs of Atlanta.  This meeting included cocktails and a fabulous dinner followed by cigars. As we began our meeting at 6:00 p.m., I made it home before midnight. It was beyond my usual bedtime, yet manageable.

The Invitation

 At the beginning of the month, my friend Tom asked if I was available to join him on the 21st for Steaks and Cigars. He said that a friend was coming to town on business and we should meet. As I said, the location is a personal favorite. I happily accepted.  Fifteen years ago, I placed Tom as a CFO for a regional restaurant brand.  He recently retired from that company, having survived several ownership changes.   It was a long but productive evening.

Arrival and Introductions

Cabernet Steakhouse

I arrived promptly at 6:00 p.m. and joined our party already in the first round of drinks.  Tom greeted me, then introduced Jeff, our host.  Then Jeff introduced his colleagues.  We spent the next hour getting to know one another over cocktails.  As this was our first meeting, we took our time, sharing background information, both personal and professional.  It was a free-flowing conversation, often taking short detours to discuss tangential topics.  We found that we shared many interests.  No one was in a particular hurry to order dinner.

Getting to Know you

We enjoyed a good exchange of ideas. We shared perspectives and insights about the state of the economy and explored how we might work together.  We also discussed opportunities that may present themselves.  Tom told us that although he was retired, he is open to interesting opportunities. He talked about his consulting work with a mutual friend. I encouraged him to consider work as a fractional CFO. This role is in great demand and would provide him a lot of flexibility.  In fact, our host came to realize that he needs the benefits of a good CFO. Tom may have landed his first gig, with a little help and encouragement from me.

It was not all business of course.  Much of our discussion was about where we grew up, places we lived and visited, and personal interests.  We found that we shared many interesting experiences.  It was a great time, catching up with an old friend and meeting new folks.

Food – Beverages – Cigars

Cabernet Steakhouse

Thankfully, I maintained discipline over my food and drink intake throughout the evening.  Two pints of Guinness over five hours is well below my limit.  Although the quantity of food ordered was more than ample, I controlled myself in that area too. The remainder of the evening was for casual conversation with fine cigars and cocktails.   After six hours of sleep, I felt completely normal.  My self-control meant that I was better equipped to connect with my hosts.

The Turning Point

I am convinced that this week was a personal turning point.  This is the first time, since the beginning of the pandemic, that I feel that I am back to a normal routine. Tuesday night I attended a live event with another group.  Although it was of a shorter duration, it included over 50 people. As I write this post, I am looking forward to two more ‘one-on-one’ meetings before the end of the week.

My Takeaway

Cabernet Steakhouse

One should not underestimate the value of personal contact.  Hearing different perspectives from people you know and respect, is most useful.  For example, Tuesday I received validation for my strategy working with a coaching client. I received further validation regarding my belief that tenures are shortening, especially for more seasoned executives.

It is difficult, if not impossible, to close a business deal without building a relationship.  It requires a personal connection.  It is difficult to become more effective without speaking to people who have faced similar situations.  I cannot be sure, but I believe it is time to get on with our lives, including a renewed focus on strengthening personal relationships.

Thank you for visiting our blog.

Jim Weber – Managing Partner, ITB Partners

 

Jim Weber – Managing Partner, ITB Partners

Jim Weber – Managing Partner,  ITB Partners

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.

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The Dave Daniels Consulting Approach to Diversity and Inclusion

My first 3 Blogs focused on the selection process to obtain the best possible Diversity and Inclusion (D & I) candidate for your organization, then transitioned to Step 1 of the DDC approach – the Assessment.  Before exploring Step 2, I wanted to add a bit more texture to Step 1.  It starts by gathering key information on the company i.e. the vision statement, values, and demographic composition of all levels of the organization.  This information helps the CDO frame confidential 1 on 1’s with each member of the leadership group starting with the CEO.  These sessions are critical to obtaining a relationship of trust allowing for a free and honest sharing of information to the CDO, which is best achieved by utilizing an outside resource.

Once these 1 on 1’s are completed, the CDO meets with the Executive Leadership Team (ELT) twice with the goal of reaching alignment.  The first meeting focuses on sharing D & I priorities, solidifying key D & I definitions, and finalizing the Vision of Success (VOS).  The second meeting revolves around integrating a D & I lens and actions around the current/future Annual Plan.  Next, the ELT establishes measurement components (outcomes vs. impact) utilizing the measurement technique currently used by the organization i.e. SMART, FAST, etc.  Finally, a communications plan is established to cascade the good work done by the ELT, led by the CEO.

Once the aforementioned steps have been completed, three new key steps need to be energized.  First, a D & I Council needs to be established and comprised of a diverse group of “high potential” employees.  The right Chief Diversity Officer (CDO) should lead this selection of this group and with the lead of the Succession Planning process in the organization.  The CDO should also lead the guidance and implementation of this group.  The primary purpose of this group should be to provide the CEO & the ELT with honest and constructive input on a regular basis.  The company vision, values, and VOS need to guide this group, so it stays focused on its primary mission, optimizing the engagement of all employees leading to improved results.

The second part of this step centers around the CDO meeting with each ELT member and his/her key team member(s).  Why?  To take a similar approach within each business unit, as undertaken by the ELT.  This action step helps ensure that the D & I lens, along with accountability, is cascaded throughout the company.  The CDO partners with each ELT member to ensure integrity and continuity within the entire company.

Finally, the CDO needs to shape the Learning and Development (L & D) roadmap for the organization, as part of the 4-5-year strategic D & I plan.  While every company’s needs will vary, I strongly urge you, the CEO, to focus on the ELT, first.  Build and improve the skills of this level to optimize your results.  Avoid the tactical trap of doing a bunch of D & I related courses, initially, as so many companies do.  The best tool for 1 on 1 development for the ELT is the Intercultural Development Inventory (IDI).  As a certified administrator with significant experience with the IDI, I can administer and coach your team to expand their skillset in selecting and developing a diverse team through real-world and effective guidance.

 

David Daniels, Daniels Consulting

Dave Daniels is an accomplished Senior Business and Human Resource executive with a proven track record of developing, implementing, and delivering upon both short and long-term results.  He has held management and executive-level positions with companies large and small throughout the United States. Dave has managed his career in a way that provides him with an exceptional breadth of experience and capacity to contribute to improving brand and financial results for his employer in every capacity he has served.

Thank you for visiting our Blog!

 

Jim Weber – Managing Partner, ITB Partners

Jim Weber – Managing Partner,  ITB Partners

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.

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Implementing D & I – A Guide for Small to Mid-sized CEOs

In my first two blogs, I focused on the selection of the right person to lead your organization’s Diversity and Inclusion (D & I) initiative.  With that critical decision made, how do I begin?  With best intentions, most companies focus on specific classes, i.e. Unconscious Bias, etc. targeting and attended primarily by employees at mid to lower levels of the organization.  The theory is that creating better civil discourse at this level creates a more inclusive and more harmonious workforce.

I have conducted my fair share of D & I learning sessions, and there are some excellent curriculum and instructors out there.  Here is my concern.  Unfortunately, there are other approaches that do more harm than good.  D & I classes occur due to a desire to impact Civil Discourse quickly and positively, especially in today’s polarized world that is seeping into the workplace more and more every day.  However, despite good intentions, the impact is minimal and can even be disruptive for the organization.  Why??

A vast majority of companies take a very tactical approach to D & I implementation.  D & I education surely seems like the right thing to do.  But, there is a far more effective way forward. The DDC Approach takes a very laser-focused, strategic process that starts with you, the CEO, and your Executive Leadership Team (ELT).  The “Approach” begins with a comprehensive ELT assessment and alignment process that sets the foundation for your company’s 4-5-year strategic D & I journey.

There are several critical steps in the assessment component that produces key definitions and a Vision of Success (VOS) that support your specific culture and its current vision, mission, and values.  Most importantly, it allows for ELT input that helps create alignment and integration of DEI while laying a foundation for a strategic roadmap that embraces and supports your vision for the organization.

Achieving success with this part of the process will depend on the skillset of your Chief Diversity Officer (CDO) that you have selected.  By now, I’m positive that you are asking yourself:  “What’s the potential pitfall to taking this step?”  Candidly, I advise NOT moving forward, if you are not prepared to assign a CDO title with this person reporting directly to you, the CEO.

If you are truly committed and believe that the right DEI approach will enhance your strategic results, then move forward.  If not, expect mediocre results at best.  It starts with the selection of the right person followed closely by the approach that optimizes the overall outcomes and impact that you seek for your organization.  Remember, the correct DEI strategy needs to impact EVERY aspect of your business.  It can’t be an HR and/or a PR initiative.  It needs to be real.

David Daniels, Daniels Consulting

Dave Daniels is an accomplished Senior Business and Human Resource executive with a proven track record of developing, implementing, and delivering upon both short and long-term results.  He has held management and executive-level positions with companies large and small throughout the United States. Dave has managed his career in a way that provides him with an exceptional breadth of experience and capacity to contribute to improving brand and financial results for his employer in every capacity he has served.

Thank you for visiting our Blog!

 

Jim Weber – Managing Partner, ITB Partners

Jim Weber – Managing Partner,  ITB Partners

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.

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Selecting the Right D & I Lead – A Guide for the Small to Mid-sized CEO

David Daniels, Daniels Consulting

As the CEO of a small or mid-sized organization, you understand the urgent need to take a significant step forward in your DEI (Diversity, Equity, and Inclusion) efforts.  You want to take the right approach, but resources are tight.  Your instinct is to proceed slowly and thoughtfully.  This critical decision revolves around selecting the right person to lead your efforts.  In my first blog, I offered several tips on how to go about this critical decision.

So, let us dig into this selection process even further.  The person that you select and their title, yes, their title, will send a message within the company on how sincere you are along with your personal commitment level. For example, I recently worked with a new President of a large gaming company who was sincerely committed to taking the right steps forward.  He truly wanted his business unit to lead this multi-business organization in the Diversity and Inclusion (D & I) arena.

Unfortunately, many in his employee base came to a quick determination that his actions were a token not to be taken seriously.  Why??  He hired a wonderfully dedicated woman but brought her in at a “Manager’s” level.  While she had a strong passion and desire to succeed, her background, skillset, and experience reflected this entry-level title.  To make matters worse, she was faced with a matrix reporting relationship which created total confusion.  Predictably, the results have been minimal and frustration levels are high.

Here is the moral of this story.  This very large and financially successful conglomerate could only muster a “Director” level as the company’s D & I lead.  Now, here you sit as a small to mid-sized CEO trying to chart a course back to financial viability.  Your organization’s resources are stretched, especially in these turbulent times.  So, what is the answer??

My strong advice is to find a highly qualified person, inside or outside of the organization, while being cost-conscious.   Seems like an oxymoron, doesn’t it?  This strategic move is no different than any other that you have or will make in the future. Throwing money, money you do not have, at this strategic imperative is not the answer.  As I have mentioned before, a well thought out strategic plan that integrates with your current strategic plan is the way to go.  So many organizations of all sizes often take a very tactical approach that focuses on entry-level employee training versus a more strategic top-down plan.

My next blog will provide recommendations on how to focus on the right steps for your organization, once you have selected the correct person who can provide real and sustainable results for the organization, now and in the future.  If you have this person who can absorb this role internally, you are very fortunate.  Most likely, you will have to look outside.  Consultants are a dime a dozen; a sunset “Fractional” CDO (Chief Diversity Officer) may meet the qualifications and cost criteria.  Feel free to reach out to find out how this can work for you.

Thank you for visiting our Blog!

 

Jim Weber – Managing Partner, ITB Partners

Jim Weber – Managing Partner,  ITB Partners

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.

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How to Provide Financial Support Without “Writing a Check”

Are you affiliated with educational and professional associations?  This includes colleges and their related fraternities and sororities, as well as our state and national professional organizations. These organizations promote our success, past, and future.  We continue our affiliated out of gratitude and, in some cases, for the continuing professional and personal opportunities they provide.

Our better natures compel us to “give back” to those who help us achieve the success we enjoy today. Typically, we can give our own time and money.  However, occasionally we are called on to “solicit” support from other people.  Many of us heed the call, but few of us actually like asking for donations.

What if there were a solution that could raise SIGNIFICANT DONATIONS, not just on a single fund-raising drive, but year-round?  And, what if that solution was “free” to the association and the donor?  This solution exists and can be realized through engaging Retail Benefits, Inc. as part of your fundraising strategy.

Associations that regularly communicate to 10,000 or more people are great candidates for Retail Benefits.  This includes most colleges, universities, and their affiliated fraternities and sororities.  When Retail Benefits cashback shopping is engaged as an element of fundraising, the following advantages will be realized:

    • Year-Round Fund Raising – Cashback giving is automatic and on-going. Once the donor signs up and downloads the shopping app, everything happens automatically.
    • No out-of-pocket expense for donors – Cashback donations are from the money that has always been spent shopping. Therefore, no new donor expenditures are required
    • Reduce/Eliminate the cost of membership – Association can apply cashback to reduce or eliminate dues making it easier for members to join and/or stay affiliated
    • Drive engagement – A portion of cashback can be directed to the donor as “donor bucks” to purchase special offers and merchandise (such as hats, shirts, pins, etc.)
    • Designated donations to multiple purposes – Donations can be subdivided to support annual dues, the building fund, and/or special causes
    • Messaging – Communicate directly to participants via the app on association business
Phillip Davis

To learn more about cashback shopping and its potential for your association, contact Philip A. Davis at pdavishr@comcast.net or

678-977-5578.

 

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Diversity and Inclusion Strategy – Key Questions to Resolve

David Daniels, Daniels Consulting

Diversity and Inclusion (D & I) is on just about every business leader’s radar these days.  But even more important is business continuity due to COVID 19.  No industry has been sparred, while some businesses have fared better than others.  As a CEO, how do you assess what needs to be done in the D & I space and how do you find the time and money when business resources are being stretched to the max?  What is the right answer for my business?

The truth is that every business is different.  The culture is different.  Values are different.  The size of the organization makes a significant difference.  The industry is a key factor.  And, how do I afford this investment, especially now? There is no “one size fits all” solution.  Many CEOs delegate this key business factor to the HR lead in the organization expecting this person to “get it done.”

The problem with this approach is that many HR leads are overloaded with current responsibilities, and often, they have limited experience in this area.  ‘D & I’ has recently added an “E,” DEI into the descriptors of this area.  The “E” is equity, and the HR lead is generally in a good place to handle this part of the equation through annual salary structure reviews along with advocating for Equity in promotions.

However, most internal attempts hit the wrong mark and are driven by tactics vs a strategy.  Any attempts at D & I should start with an assessment and gap analysis with the leadership of the company.  Once effectively diagnosed, your company needs to create executive alignment on priorities and pace of the process.  And, the D & I strategy needs to be embedded into your current culture and strategic plans vs a stand-alone strategy.

A vast majority of the time, the answer is seeking an outside perspective.  Easy to say, but finding the right person is critical.  It will require the CEO’s direct involvement with this selection process.  Hopefully, I have provided you with some key questions to ask.  The most important part of the selection decision is to find a solution that provides a bridge tailored to your culture and is cost-effective.  A “sunset” Fractional CDO (Chief Diversity Officer) approach could be your answer to optimizing this decision.

About the Author

Dave Daniels is an accomplished Senior Business and Human Resource executive with a proven track record of developing, implementing, and delivering upon both short and long-term results.  He has held management and executive-level positions with companies large and small throughout the United States. Dave has managed his career in a way that provides him with an exceptional breadth of experience and capacity to contribute to improving brand and financial results for his employer in every capacity he has served.

Thank you for visiting our Blog!

 

Jim Weber – Managing Partner, ITB Partners

Jim Weber – Managing Partner,  ITB Partners

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.

 

 

 

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A Crisis Averted

Jim Weber – Managing Partner, ITB Partners

Andy called me early Monday morning.  He had a crisis to resolve.  It was not a life and death crisis, but a potential blow to his professional credibility and confidence.  He was facing the complete failure of a new venture. This series of events began for me on Friday.

Friday, Andy told me that he had been asked to lead the renewal of a successful networking program organized around a “book club” format.  The originator of this concept is no longer able to lead the program, but it is a well-established brand with further potential.  It is a great honor for Andy to be asked to revive this concept.  Unfortunately, Andy did not have much time to plan the first event as the speaker is publishing a new book at the end of September.  By supporting the book launch even on short notice, Andy created a win-win situation.  His plan was to offer a ZOOM event the following Wednesday and he asked if I could promote it to my network.  I agreed, of course.  Over the weekend, however, Andy’s promotional plans were dashed.  That was the genesis of his Monday morning call.

Monday morning, he explained that he was unable to promote his event as his Internet Service Provider (ISP) suspended his account.  He had exceeded his allowed email volume.  Unable to advertise he faced a stillborn event.  He asked if I could help.

I could relate to his predicament as I had the same experience many years ago.  It was the catalyst that led to a subscription with an Email Marketing Service (EMS).  This EMS reinforced my brand image and improved the effectiveness of my messaging.    I have not had a problem with my email campaigns since.  Also, I can leverage the utility of my website and social media accounts by integrating them with my EMS.  It is one of the best decisions I ever made.

Problem Solved.

I reminded Andy that one of the benefits of membership with ITB Partners is access to our EMS.  He had forgotten that, but he was not familiar with the concept anyway. I explained the value of using an Email Marketing Service and answered his questions; How many emails could we send? How often?  How many people could we engage at one time?  When his questions were answered, he realized his crisis had been averted.

I went to work on his project.  Using his copy, I created an email that will become the template for future campaigns.  It represents his brand well and the message is clear.  He provided me with three email lists that I uploaded into separate folders to be used for his projects only.  Finally, I scheduled the emails to be sent daily, leading to Wednesday’s event.  By midday Monday, Andy was back in business.

Build your business or career.

You need not be a major corporation or an online retailer to enjoy the benefits of your address book.  It is one of your most valuable assets.  I learned this early in my Executive Search Career.  I began sending group mailings to demonstrate my vitality. It was a powerful business development tactic.  I announced new assignments, which generated interest from prospective candidates.  When I announced the completion of a search, prospective clients called me to assist their recruiting for similar positions.  Doubtless, this concept will work for anyone.

Personalize your email campaign.

The smart people in transition create a mailing list from their address book.  They know that their network wants to hear from them and to help if they can.  They use email to keep their contacts up to date on their situation.  They understand that their outreach can be even more interesting if they share their thoughts, ideas, and experience in each post.  This technique has become an effective way to shorten one’s time in a job search.

Build brand equity.

Back to Andy.  Yes, his event was a success.  There were the typical first-time logistical problems associated with a ZOOM meeting, but those issues will diminish over time. The presentation was insightful and well-executed.  Those who attended the meeting were riveted.  Andy did not achieve his attendance goal, but he was not far off.  Word will get out. As the quality of his promotional efforts improves, attendance will follow. I am looking forward to working with Andy to help rebuild this brand.

Your address book is valuable!  USE IT!  If your mailing list is large enough, consider an EMS.

Thank you for visiting our blog.

Jim Weber – Managing Partner, ITB Partners

Jim Weber – Managing Partner,  ITB Partners

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.

 

 

 

 

 

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COMPANY RESTORATION IN THE NEW NORMAL – PART 4 – 5 C’S RESTORATION STRATEGY – THE FINAL 2 “C’S”

From the mind of Don Turner – “Creating Clarity in a World of Complexity’

 

We are in our last installment of “Company Restoration in the New Normal.” I hope you are finding it informative and it is prompting some of your own thoughts about what to expect as we conduct business in this new world, we have found ourselves. Again, I invite you to leave comments on your thoughts so we can all learn together.

“The capacity to learn is a gift; the ability to learn is a skill; the willingness to learn is a choice.”

~ Brian Herbert

In Part 3 we introduced this mind map of the “5 C’s Restoration Strategy” and discussed the first three. In this final Part 4, we finish introducing the last 2 “C’s” and talk about the future.

5 C Restoration Strategy

COMMUNITY

“Alone, we can do so little; together, we can do so much”

~ Helen Keller

Your business operates within a community of Suppliers, Customers, Lenders, Local Government, and more. In “normal” times there is always a level of dependency with each member of this community. I know many companies like to talk about “partnerships” over “vendorships”, but the reality is that there is always a recognition that if needed there are options to replace one member of your community with another – i.e., the “law of supply and demand.”

Given the increased requirements of conducting business in the New Normal, you will be forced to have more detailed, more transparent, and more involved “heart-to-heart” discussions with everyone in your Value Chain. You will certainly need them to be accommodating to your liquidity pressure as they will require the same of you.

If there ever was a need for commitment over-involvement, the New Normal is the time.

With all due respect – and somewhat “tongue in cheek” – you and your business community need to embrace the “swine mentality.”

What does this mean?

For Suppliers associated with some form of fabrication, you may have to jointly work out the flow of raw materials with the flow of cash. As mentioned in the last installment, this will likely have several characteristics to it:

  • You may have to interactively negotiate cash flow terms between your Supplier and yourself and with     your

Customer and yourself.  This will require a level of trust

AND transparency that all parties are most likely not accustomed to. Expect to have honest discussions around “normal” margins and temporary New Normal margins – i.e., “I’m working at 20% less margin, can you sell to me for 20% less?” Who knows? In the short-term, you may have to “open the books” to negotiate with your Suppliers and Customers.

  • If – and that is a big IF – this is done successfully, would fully expect these relationships to evolve into strong “shared goal” partnerships as we evolve into later stages of the New Normal.

For service Suppliers, the challenges maybe even more difficult given that in tough times cutting back on outside services is typically one of the first burn rate reduction initiatives. With this in mind, there will be a renewed focus on monetarily quantifying your value-add to your Customer. This will be a rude “wake up call” for many Service Providers who have ignored this service-providing fundamental for way too long – i.e., paying “lip service” to it in promotional literature without routinely reviewing, refining, and enhancing their value to the marketplace.

You may have to provide a partial service to your Customers for a heavily reduced amount just to keep the business. In this case, you may have to significantly broaden your Customer base providing a narrower focus of services for heavily reduced prices.

All this said, with either fabrication or service Suppliers, I would expect that those business communities that survive and evolve into the New Normal to represent phenomenally stronger entities. This should serve them well in the future.

We addressed “Customers” as a stand-alone item in the 5C Restoration Strategy but it deserves some additional discussion in the context of your business community.

Customers should be open to discussing mutually beneficial arrangements where you can offer a temporarily reduced price and in turn, they will give you a long-term commitment to continue purchasing as the market becomes healthier. As with your Suppliers, you will likely have discussions that involve an entirely new level of transparency.

Again, everyone is simply trying to engage in commerce again. Communication, creativity, transparency, and commitment are the ground rules for the New Normal.

Lenders have always been willing to talk about helping in a distressed situation. Trust me, they don’t want to see you fail – costs them money, time, and a whole lot of paperwork. In the New Normal, there may not be much new capital available through traditional lending institutions (ED: we will briefly address the role of Private Equity at the end) but that is likely not your issue. Early in the New Normal, businesses will most likely be looking to “buy time” in dealing with existing institutional debt.

Relative to new lines of credit, I don’t see this as an impossibility if the Lender is brought into the interactive and integrated discussions that you are having with your Suppliers and Customers. At the risk of repeating myself ad nauseam, this will require complete transparency and a commitment by all members of your business community to work together. “Good and Services” move on the current of “Cash Flow.”

COMMERCE

“When only one party makes a profit that’s robbery; when all parties make a profit that’s business.”

~ Amit Kalantri, Wealth of Words

Last but not least is the business itself. An involved topic but the key points are:

New Normal Marketplace Ground Rules – you must take an honest, fresh look at your value proposition into the marketplace. Think through the real value your offering has to your Customers. If you can’t answer the following four questions succinctly then you have a true “value proposition problem” with your business:

  1. “Why should the Customer listen to you?” 2. “Why should the Customer listen to you now?
  2. “Why should the Customer buy from you?”
  3. Why should the Customer buy from you now?”

There is a “brave new business world” coming via the New Normal and I see only quantifiably value-offering businesses surviving, much less thriving.

SHORT-TERM GAME PLAN – the first step in your Restoration is to deal with all of the aforementioned. In addition, have a Restoration Game Plan that you look at EVERY day, THROUGHOUT the day. Each day should involve laser-focused attention to balancing:

 

  • Delivery Cycle Excellence – if your offering is still relevant in the marketplace then there will always be Customers for those who can deliver real value quickly, cost-effectively, and with superior quality.
  • Liquidity Management – in the early stages of the New Normal, liquidity hiccups can be deadly. Constant vigilance and constant communication backward and forward in your Value Chain is critical.
  • Culture – remember your employees are no longer coworkers. If you have made the management to leadership       transition effectively they are your “Battle Buddies”, your

“Foxhole Friends.” Communicate, communicate, communicate.

LONGER-TERM GAME PLAN – obviously the longer we look into the future the less clear our “crystal ball” will be. However, looking into the future is something we all must do – the alternative is to face the professional ignominy of being a “Reaction Manager” versus a “Proactive Leader.” Note, this “looking into the future” is where the art and science – and trust me it is clearly both – of Strategy comes into play.

The fact is that we may not make strategic decisions daily, but in a lifetime of developing and executing strategy, I guarantee you that you are exposed to “strategically-relevant” information EVERY day, throughout the day.

If you don’t have the processes and tools to capture in real-time you should at least set aside some time at the end of every day and ask yourself, “what did I learn today that may impact my long-term direction at some point in the future?” This observation can involve the market in general, Customers, Competitors, Offerings, or the underlying technology that is part of your marketplace. Sometimes it is nothing more than a “tidbit” of news – you need to learn how to identify “potentially” important strategic data (ED: it is a sad testimony to our Business School educational system that many professionals have never been taught to be “Strategic Thinkers”).

An additional observation based on a little bit of experience on the topic is to understand what is becoming LESS important in the marketplace. Many professionals only try to understand the emerging or growing trends – remember how we said that is the “essence” of strategy – and that is a good thing. However, what is often ignored from a resource planning perspective is also trying to understand what is becoming less important. It is amazing how many times I have found organizations still investing significant resources – time, personnel, and capital – on items that are becoming less relevant in their marketplace.

Bottom line, the objective is to gather and organize strategic information in a way that it is useful when you formally sit down with your Team to refine your strategy – whether that be monthly, quarterly, semi-annually, etc. (ED: timing is a function of the “velocity” of your particular marketplace).

“It’s amazing how a little tomorrow can make up for a whole lot of yesterday.”

~ John Guare, American Playwright

FINAL RANDOM THOUGHTS

Given that in recent years I have worked with a lot of Private Equity organizations, a comment or two about how they will play and play into the New Normal seems appropriate.

First and foremost, they will be laser-focused on the survival of their current portfolio companies. They always hold back extra capital – i.e., “dry powder” – to further invest in their portfolio companies when either things have not gone as planned or there is an opportunity to grow even faster. Obviously, nothing prepared them for this economic calamity of a global scale. It is likely that some “fire sales” will be taking place as they identify portfolio businesses that simply aren’t relevant in the New Normal and need to be jettisoned.

That said, once their portfolio is relatively stabilized, expect them to be on a “rollup” frenzy – where a “rollup” is when an investment firm buys multiple smaller companies in the same market with the intent of developing economies of scale and becoming more of a dominating force in that particular marketplace. With the expected business casualties of the New Normal, it is likely to be what we refer to as a “target-rich environment” for buying distressed companies.

As a business professional, it would be to your benefit to follow these rollup activities and look for opportunities for your own business. Ahhh, but that is a topic for another day.

SUMMARY

As we come to a close on our look at restoring companies in the New Normal, let us review what we discussed:

  • We are NOT going back to normal, there will be foundational changes in our society, our culture, and the manners of how we conduct commerce.
  • Surviving – much less thriving – will involve far more involved techniques than normally associated with “Restructuring” or “Turnaround” – though the actual stages remain the same
  • Successful business Restoration will require innovative approaches to managing Cash, Customers, Culture, Community, and Commerce itself

So. we are headed for a New Normal – of that, I have no doubt. Here is to hoping that we can use these “interesting times” to our advantage and make a better world for all.

Particularly in challenging times, success is NOT about knowing the answers to tomorrow – few have that prophetic ability.

Future success is based on asking the right questions today.

Good luck. May you and yours be safe and healthy.

Don Turner, 24 Apr 2020

Don Turner

Don Turner is a serial growth and turnaround executive with success in a broad range of marketplaces and business situations. He is also an internationally recognized Strategist who has deployed his VOGI® Strategy Methodology in over one-hundred organizations ranging from startup to NYSE and NASDAQ public companies. Routinely called in to deal with some of the most difficult business problems, one executive summed it up as, “everything Don touches is better as a result.”

From the mind of Don Turner – ‘Creating Clarity in a World of Complexity’

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COMPANY RESTORATION IN THE NEW NORMAL ©2020 Donald H Turner – PART 3 – 5 C’S RESTORATION STRATEGY – THE FIRST 3 “C’S”

From the mind of Don Turner – “Creating Clarity in a World of Complexity”

In Part 2, we discussed the underlying factors of the New Normal that will force a more intense way of looking at “fixing” companies that have been broken by this global calamity. Building off of “Restructuring” and “Turnaround” approaches, we identified the increased difficulty and complexity associated with the New Normal and introduced the concept of “Restoration.” Restoration efforts will require fixing distressed businesses in an environment where not only they themselves but their entire marketplace – Customers, Suppliers, Lenders, etc – are distressed also.

We suggested this will require an evolution of traditional “Restructuring/Turnaround” perspectives and approaches to successfully restore a troubled business back to prosperity.

With this third part of our series, we introduce the first three of five activity topics we suggest should be addressed when “restoring” business in the New Normal. These topics – Cash, Customers, and Culture – are shown in the following exhibit:

5 C Restoration Strategy    

Before we go into further detail for each of these topics, a couple of important thoughts:  First and foremost, these activities don’t happen in isolation – there are strong interrelationships and interactions between them.

  • Secondly, given the interrelationships, they must all be executed simultaneously with an eye to integrating and balancing focus and resources
  • Thirdly, are there other activities to execute? Certainly, however, I believe they can all be covered under one of these 5 C’s

Let’s take a look at the first three:

CASH

Cash combined with courage in a time of crisis is priceless ~ Warren Buffet

The proverbial “Cash is King” saying is never more relevant than it is today. For a company to “restore” itself and survive they must determine how much liquidity runway they have at the current burn rate – most likely under various pessimistic to optimistic scenarios.

These scenarios take into account your entire value chain – from Suppliers to Customers – and are based on the multitude of creative cash optimization tactics one can employ.

Not Enough Runway

Not enough runway? Then obviously some hard decisions must be made. The point is that as we enter the first phase of the New Normal, we need to determine how much runway the company has. The length of the liquidity runway dictates both the urgency and types of decisions to be made.

Anybody who has done turnarounds knows the endless variety of decisions that can be made to improve liquidity. We won’t go through all of them here but suffice it to say your initial Restoration decisions will almost always involve prioritization and retraction. You must prioritize those activities and resources that are MUST HAVE to restore the business. Based on that prioritization you need to identify where retraction makes sense – at least in the short-term. As mentioned in Part 2 of our discussion, this retraction might include determining what Customers you can’t serve, what products or services you can’t offer, what delivery channels are superfluous, what resources – both in personnel and facilities – are not absolutely necessary.

Remember this retraction requires focus and that focus is on the “Delivery Cycle” – those activities directly associated with selling, delivering, and servicing your offering. These activities are all Customer-facing and have a direct and immediate impact on your revenue. Longer-term activities like identifying and creating new offerings associated with the “Development Cycle” can wait.

Development – Delivery Cycles

A final thought on Cash is that it is also important to identify creative ways of extending or even using non-cash transactions. Again, mentioned in a previous part of our discussion, some of the obvious ways are bartering and consignment. However, I also expect to see in the early stages of the New Normal businesses negotiating concurrently with both the Supplier and Customer side of their business to ensure optimal cash flow. Remember, EVERYONE is in the same boat and has a common objective of survival! If there ever was a time to conduct creative transactions now would be the time.

CUSTOMERS

Without Customers, there is no business to restore.

In the New Normal, you will find yourself engaging with your Customers more honestly, period. Restoring your business concurrently with your Customer restoring their business will require a new level of transparency and openness in your discussions.

In the New Normal, Customer communication will take on an entirely new level of importance. Embrace it, this is a good thing in the long run!

My personal and professional hero has always been my Grandfather. He started me off in the world of business by reading Horatio Alger to me as a child sitting on his lap (ED: while listening to Eddie Cantor records, I remember the time fondly and well). He had me work in his real estate and construction office before I was ten, driving our supply truck to deliver material to the crews as soon as my feet could reach the gas pedal, clutch, and most importantly, the brake. My fundamental view of business, hard work, and dealing with people, in general, all came from him. Ahhh, but that is another story.

I remember one of the most profound things he ever said – and Grandpa had a lot of them. After meeting with someone in his office where I was allowed to sit in the corner, keep my mouth shut, listen, and watch, he once said, “You know Donny, 95% of all the problems you could ever have with a Customer are based on poor communication. The other 5% is a rounding error.” As I said, Grandpa was a wise man.

In the early stage of Restoration, you cannot over-communicate with your Customers. Yet, in the New Normal, you should do be doing more than just communicating. You should be interacting, engaging, finding new ways of working together, new definitions of mutual benefit. In the New Normal, your Customers will exhibit a level of vulnerability that you’ve never seen before. Use this time to strengthen your relationship with them.

Value Proposition

Evolve the value proposition between the two of you. How can delivery costs be reduced?          Can packaging be done differently? Can services be bundled? These and many questions should be asked in an attempt to creatively increase the real value between you and your Customer.

Of course, in the New Normal if your business offering is not as important to your Customer as it was before, or worse yet, no longer relevant to them than you have a fundamental “going-concern” problem. Remember, without a clear value proposition you simply aren’t relevant to your Customer – they are restoring their own business with the same intense concentration on prioritization and retraction.

CULTURE

Collectively, people are your culture and it is the culture that helps drive business success.

Yes, your people are valued individuals. However, even more importantly, as a group, they represent the culture of your organization, and in the New Normal that culture will require a new perspective on how to effectively manage.

It is your collective culture that creates the “Customer Experience” as it defines, creates, and delivers your offering to the marketplace. Better culture, better offerings, better delivery, better Customer loyalty (ED: I have strong opinions of loyalty versus satisfaction, for a GREAT read “Customer Satisfaction is Worthless Customer Loyalty is Priceless” by Jeffrey Gitomer, it will radically change your view of “satisfaction”).

Firstly, let us get the unpleasant stuff out of the way. You may have to downsize – in fact, you most likely already have and will downsize even more as you restore your business. One strong suggestion is to cut as much as you think you need for the foreseeable future. Nothing destroys culture like a Damoclean sword over everyone’s head. Once you conduct a reduction-in-force (“RIF”) you need to start rebuilding the Team culture.

Yes, part of this RIF from the reduced level of your present business. However, it is hoped that during this current isolation phase of the New Normal, you are learning how to “do more with less” via the effective use of technology and processes. This is an unpleasant reality but if you haven’t already figured this out, you haven’t been paying attention.

That brings us to our second point, defining the “New Normal Work Environment.” If your management style hasn’t in the past, I hope it is now evolving to focus on deliverables, not hours.

Yes, there are certain jobs that are fundamentally based on “hours” – e.g., Customer Service Representatives. Yet, there are countless other jobs where the number of hours you put in is not as important as the deliverables you produce. That is a fundamental change in perspective for a lot of Managers who must learn to manage in that environment. The bottom line, I envision remote working to be a seminal change in the New Normal. Do we still need offices? In many cases, the answer is “yes”. However, do we need as much space, and do our employees need to be in there five days a week, eight hours a day? I don’t think so.

Technology will help enable a significant amount of the New Normal. Remote Team Management tools have been around for a while and continue to grow in their adoption. Video Conferencing will evolve. Electronic whiteboards will be the norm for Team brainstorming. Workflow Management solutions will increase the velocity of deliverables through an organization. We will find that the effective use of technology will not only enable business in the New Normal but evolve and enhance it like never before.

One positive of the New Normal is that there will be shorter, more focused interactions – particularly in the use of meetings. I have had several executives tell me of late that what would have been an “in-office” meeting of an hour to an hour and a half was done via a video conference in half an hour – and they felt more was accomplished.

When I worked in major corporations, I always told my Team that independent of “emergency meetings” that are occasionally required, they had my permission to completely ignore any meeting request that did not include an Objective, an Agenda, and an Expected Deliverable twenty-fours in advance of the meeting. It is amazing to see the increased meeting productivity simply having those items identified ahead of time. Maybe even include “prep work” prior to the meeting (ED: it may worth your time research the meeting culture of Amazon via Jeff Bezos – something to be said for it).

By the way, unless it is a general presentation, during a working meeting anybody that hasn’t had anything to say probably shouldn’t have been invited anyway. They can read the meeting summary later – don’t waste their time. Remember, this is “live or die” focus time.

During this same time, you should be looking at how you “re-engineer” your processes – i.e., simplify, streamline, make more efficient, more effective. The best time to reengineer processes is when you have to because that is when the organization puts up the least resistance to change.

The critical question going forward is how to compensate employees when cash is limited. You will likely have to be creative with the employees you retain. Some form of reduced pay with a clear game plan for making them whole sometime in the future through future cash flow or equity. However, no “creative” payroll strategy will work without a new level of transparency into the financial realities of the business. That said, you would be surprised how many employees when given the “naked truth” of a Company status will nod their heads and say, “okay, I understand, let’s make this work.” Who knows, you might build an even stronger, more cohesive, more dedicated, more productive culture as you continue your Restoration.

There is a bond that is created between those who suffer together. Between those who face life-changing events together. Who lay it on the line together. They call it  Foxhole Friendships.

At this point, I’m hoping that there are no surprises on what will be required for restoring business in the New Normal. Yes, it will be difficult – most likely excruciatingly so. If there is any consolation in what we all will be facing it is that: a) we will be doing it together; and b) for those of us who successfully restore our businesses and survive we will be undoubtedly stronger for it.

Okay, we looked at Cash, Customers, and Culture. Tomorrow, Community and Commerce.

Don Turner

don@turnerworld.com

678.361.3313

www.turnerworld.com

 

Thank you for visiting our blog.

Jim Weber – Managing Partner, ITB Partners

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.

Jim Weber – Managing Partner,  ITB Partners