Category: Business Development

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Inclusion

“All musicians are potential band leaders.” Thelonious Monk

Dr. Stephen H Dawson

I was being recruited in 1994 by a big-name record label out of Nashville to serve as bandleader for an up-and-coming country music guy. The deal terms proposed to me were pretty good, but I did not feel good about the deal in my gut. I passed on the work for one reason: they had not heard me play a note. They knew of my education and experience credentials but did not know too much about me as a person.

I recommended last week a short film for you to watch. I hope you watched it. We were going to talk about how your viewing experience of this short film went for you during our time together this week. The part about the whole person we covered last week is key to both this week and all things going forward. We will discuss the concept of inclusion as we meet now to go through how you felt during your viewing experience of the short film.

INCLUSION

I, for lack of a better way to say it, was in the band of this up-and-coming country music guy in 1994 without accepting the offer. My customer was going to be out in a sea of lights. They would be nameless and faceless to me. I would be paid bi-weekly if two things occurred. First, the new material we were going to record into an album sold where the record company was happy with album sales. Second, concert tickets supporting music material the guy had going on before me and supporting the pending record album sold. I would be replaced in an instant if both of these conditions were not happening consistently. I was okay with this criteria combination, as it is the nature of the work. Not everyone sees it this way. The album Centerfield is the third solo studio album by John Fogerty. Fogerty played all the instruments on this album himself. I guess John did not want to have the collective risk of some people problems anymore at that point in his career.

The identified people problem suffering your ability to have strategic planning work accomplished was compacted into a few minutes during the Most film. The older main character realized the problem, considered it, and acted on it. He had to act, one way or the other. He acted under duress imposed on him from the circumstances, not any person or persons. All options presented to him hurt him. It hurt me to watch the film. It is probable resolving your people problem is going to cause you some hurt, one way or the other.

The definition of inclusion is simple: included. Included, in the form of being…in. The degree of in is another topic. The fairness of being in or out is another topic. All I am saying to you now is a person who is included in your organization is in your organization, period.

A recent discussion with David Daniels had Dave sharing more of his wisdom with me. “Inclusion as part of the D & I equation revolves around people feeling like their voice is heard while leadership supports this concept because they believe it produces better solutions, thus better results, both financially and with higher commitment levels of employees i.e. the ability to attract the best of the best in their industry.” I agreed with Dave. I see people providing their input as many rivers coming together in a pool to feed a tree. The tree, in this example, is the work the people need to accomplish. It is tough to remain distinct when mixed, but this condition is similar to a cake. Add the ingredients, mix them, bake them, and there are no more ingredients. There is cake. Altering ingredient amounts and types means a different tasting cake. A structural approach to strategic planning for the who part and when they get involved part helps to accomplish a preferred result.

Individual voices as water coming together.

HOW MUCH IN?

Remember I wrote a few paragraphs back my customer would be out in a sea of lights? Well, those people were to be a part of my organization. I needed them to be happy by spending their money for me to keep my band leader job. I was not sure I could deliver the collective satisfaction the folks in that sea of light were after, as the big-name record company out of Nashville had not heard me play a note. There had to be a stronger connection to know if we would make it to success by a probability calculation.

The customer.

Your strategy work is not getting accomplished as you prefer. We pushed off the option it is not a time or skills problem causing the work delay. It would be best if you now changed who you include doing your strategy work. This change does not mean they need to leave your organization; only stop doing this work. If you realize they do not have the skills to do the work, then you have a separate set of staffing actions to accomplish. Additionally, you have to take a hard look at if they should have done the work based on the time allotted to them to do the work combined with the workspace resources where they perform their work. Again, as I said a few weeks back, you have to call it for what it is.

Thelonious Monk made a strong point without saying it. One must first be in the band before one can lead the band. Franklin Roosevelt made the same point: “You are either with us or against us.” Today, we are faced with how to best recover from the 2020 global pandemic. It is clear the definition of work for many roles has changed forever. So, who is in your band, so to speak, for your organization going forward?

Richard Florida and Adam Ozimek addressed some of the challenges with remote work going forward. “Before the pandemic, a number of communities developed strategic initiatives to attract newcomers—some aimed at high-tech workers but others open to anyone who commits to moving. Many include the lure of cash incentives, akin to the moving expenses paid by companies to new hires.” This criterion is no longer valid for many industries and companies. “To lure and support the growing ranks of remote workers, communities will need to build out more complete ecosystems for them to live, work and gather.” Meaning, the ability to do remote work effectively as a whole person has changed the workforce forever by establishing suburban life a primary regardless of distance from the office to home locations.

Nataly Kelly wrote about the complexities of having inclusiveness in a global organization. “While it might not be immediately obvious why an employee in Tokyo should learn about the history of slavery in the United States, if we want our global teams to work together, they need to understand one another’s realities.” Going deeper, the concept of data is still not managed well at the executive level. Data, in the form of understanding the facts for how we as humanity got to where we stand today.

Thomas Davenport and Randy Bean found in their survey executives are excited about implementing artificial intelligence in their organizations, but they do not have reliable data leadership skills and leaders based on “nascent and evolving” leadership roles. “The executives are usually pretty bullish about technology but quite bearish regarding whether their organizations are becoming more data-driven.” The survey shows the role of data officer at the executive level is not agreed on by a high majority of executives.

The pattern playing out is clear. The leadership’s proverbial music is not making the audience (the organization) happy enough for them to want to keep listening. The organization cannot understand how data, being facts, interrelates because the leadership does not have a strong enough grasp on the data lifecycle concept themselves. Bad data, either incorrect or insufficient, feeds into both inaccurate and ineffective data analysis. This combination destroys efforts such as the planning of strategy.

REFRAIN TO CHORUS

My work as a bandleader was to play acoustic guitar, sing harmony, arrange much of the music after songwriters derived a melody, set the performance tempo, and develop musicianship in the band members. It is not easy to hide during a live performance of music. Strumming the guitar only goes so far, as we say in the guitar business. One must play the guitar, in my case, with the other musicians to have a band. Add in the singing aspect, and the sound is either is or is not pleasant to the paying customer. Your role now as a leader is to use a refrain to help get your people either to or back to productivity.

Which one do you want?

You could swap guitars, swap guitar amplifiers, move the musicians to a different location on the stage, or any number of changes to help improve the sound of a band. Say you needed to pick out a chair for you to sit down in for whatever reason. You could pick from many different seating options to meet your need. If you need strategic planning work accomplished, you will need to keep making changes to find the mix that results in productive work output. You are looking for, as an analogy, both applause and continued funding from your audience for your strategic planning work. There is a time constraint to almost everything. The older main character in the Most film was under an explicit time constraint. Staying focused on the scope of the strategy you are trying to plan is a viable means to knowing if you are either spending too much time getting the work accomplished or if you are indeed not getting work accomplished.

I used the words of James Taylor to help me walk out most of my musical journey. “I believe musicians have a duty, a responsibility to reach out, to share your love or pain with others.” The older main character in the Most film made the same choice as Taylor: sharing love or pain with others. Both this older main character and Taylor are leaders in their respective lots of life. Leading is not easy, but I never said it was easy.

Take time this week and consider the topic of who you need and want to include in your organization. Think about the associated time constraints, the money constraints, and the pains of having people come and go either moving around or out of your organization. The world population reached 7.8 billion people as of March 2020. There is no shortage of people for anything. Clearly, you cannot pick everyone in the world because you do not have enough money to pay everyone in the world. Besides, you would get so big along the way you would be identified as violating antitrust. Selecting irrevocable choices…this is the harsh reality of accomplishing strategic planning. Perhaps playing some music you like to hear during your consideration time will help you go through this thinking easier.

So, I ask you: where do you want to go? I hope your answer is to develop the plans necessary to accomplish the strategy you know you need to achieve to arrive at your desired destination. If this is the case, then let’s get to work. If not, then I wish you the best of everything.

I hope we will see each other here next week. Email me if you need to talk before then.

Dr. Stephen H. Dawson, DSL

Executive Strategy Consultant

Stephen Dawson is an executive consultant of technology and business strategy, serving significant international organizations by providing leadership consulting, strategic planning, and executive communications. He has more than thirty years of service and consulting experience in delivering successful international business development and program management outcomes in the US and SE Asia. His weekly column, “Where Do You Want To Go?,” appears on Thursdays.

Thank you for visiting our Blog!

 

Jim Weber, Managing Partner – ITB Partners

Jim Weber – Managing Partner,  ITB Partners

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Breathing

“We’ve got to try. Do you know what happens if we don’t try?” “What?” “Nothing.” Braveheart

Dr. Stephen H Dawson

I only have time now to watch movies on Saturday nights. Not every week, but when I can. I turn off the world by throwing my phone out the window, getting away from my laptop, and remember when life was simple enough to enjoy two uninterrupted hours of rest. I breathe easier when movie time arrives, as it is a pivotal stopping point in my week. I like movies that have a historical significance. They help me understand more of the historical topic, though I remember theatrics could skew the facts. The act of muddying facts with opinions is an activity found in theology, philosophy, and even unstructured discussion. Sometimes, we realize we are only opinionating. Other times, we are able to stay grounded in facts. The rest of the time, it seems like we do not care enough to do either.

I shared last week the perspective I hold of 2020 from the strategic planning position. Everyone, for the first time in world history, had to throw the majority of their plans out the proverbial window, as I do my phone on Saturday nights. We were all trying to come up with a new plan to face the events of 2020. We wondered last year if trying to have a plan was worth it anymore. I faced that question myself. I learned this past week several readers of last week’s column also faced this question. Some of them shared with me a few of their recent experiences. We all stand in 2021 with the same multi-pronged question: do we need to plan, or can we even plan anymore? I am sure the reasoned response to this matter is a resounding yes.

UNASSURED SUCCESS

Yes, there are plenty of smart folks who fail at their strategic planning, who then try to abandon planning. The Wall Street Journal reported Vale settled for $7 billion this past week for their part in a collapsed dam. The same periodical also reported McKinsey settled for $573 million this past week for their part in the opioid epidemic. Singapore reported this past week they will need twice as much fresh water in 30 years than they have now. These stories represent significant failures by professionals in their practice areas. I hope they work things out for the best. Their failures do not limit my life. I hope they will not limit yours, either.

OPINIONS VERSUS FACTS

I read a recent opinion on when to change a strategy during a crisis. The opinion operates by first achieving four measurements, then responding to each measurement accordingly. I practice strategy. I sell what I practice. I spend several hours each week reading. I read weekly many facts, statistics, reports, and opinions. Sometimes, these items are even assembled into a form of foresight. I read an article this past week in the Harvard Business Review about why it is challenging to have workers operate using quality data now that computing has been around for decades. I also face this challenge in my work to serve my customers. The reason for the workers not using quality data difficulty is the lack of belief held by both the workers and their leaders to change their culture to only have and use quality data. It is a failure of leadership.

I read an article this past week in the MIT Sloan Management Review about growing a human-centered business. The term data does not show itself prominently in that article. Can we ever establish a productive organization without first having quality data? Can we ever have a productive organization without it also using quality data? It is doubtful. Again, more evidence of the need for facts in hand versus operating only by an opinion.

I do not remember reading the professional report on what to do when we all have to stay home for weeks. Neither do I remember hearing an opinion from those older than me about what to do when a global health crisis occurs. I provide guidance to folks. It is my advice based on the best research and recommendations I can deliver to them. I would commit a critical error if I stated facts and opinions could be separate in the practice of any field of work. What I can tell you with certainty is planning is easy when the necessary facts are in hand. What is difficult is assuring any fact is not in actuality an opinion.

A lifetime can be spent to accomplish what seems to be only a bit of fact-finding. Think back to the time when it was unclear if the world was flat or round. Think back to life before antibiotics. The rush to get something productive accomplished is neither bad nor good. It is a reasonable tendency to want to demonstrate productivity. “We’ve got to try. Do you know what happens if we don’t try?” “What?” “Nothing.” I agree life does not always let us wait for research to occur before action must occur. Thankfully, planning to get facts often helps us stay out of a mess by working continuously to know we hold facts. Note, I did not say work endlessly and never rest.

WHAT NOW?

I hope I have sold you by now on the need to plan the strategy you want to accomplish. I realize you may be feeling overwhelmed now. I offer the best advice I can to those in this condition. The advice is to follow a two-step process.

Step one, breathe. Step two, repeat step one. No smug intended here. Realizing the unquestionable need to undertake strategic planning can lead to the thought of quitting the work before beginning the work. My first trip to Chicago happened in early grade school. I first saw a train rail yard there. The operation’s size taught me a bit about the thinking, planning, and work required to build a railway that would help build a nation. Today, most trains are operated by electric engines. A steam locomotive needs oxygen to operate. It needs to breathe. The industrial revolution is filled with images of steam locomotives. Sometimes the train tracks are elevated. I cannot imagine how much fill dirt and gravel hold up an elevated railway system.

I am reminded of rail stressing when I look at older railway systems. It was not until hydraulics were invented before the rails could be treated to handle a railway system’s stress. I can only imagine the number of train wrecks on railway systems that were not treated with rail stressing. Take some time, breathe, think about living without a plan to accomplish your strategy, and see if you want to advance beyond a steam locomotive to execute your strategy.

STRESSING BREATHING

Doing the work to accomplish strategic planning involves research. The plan you write helps to inform others what they must do as a group, a team, a department, a company, a family, or even a country to achieve the strategy. A human-centered plan may include technologies. The research work could be boring at times, but it is not boring for those who need a viable plan to carry out their proposed strategy.

The endurance metaphors abound at this point in your decision to not quit on your strategic planning work. Pressing onward. Get up a head of steam. Get on track. Then, the big one: fight the good fight. Again, as I shared last week, I am not sure what fight is being fought in our contemporary society, but it is appropriate to include it in this list of go-get-’em slogans. I hope to focus you now on breathing leading to trying.

Gloria Gaynor asserted, “I will survive.” It seems as though she did, based on how many times I have heard her say those words over the years. A good way to get out of desperation is to form a plan, work the plan, and rejoice you are no longer desperate. I shared last week if you, at your lot in life, can understand strategic planning as a series of plans involving simple communications, then you have the necessary understanding to undertake your strategic planning efforts. I stand by these words. I urge you to spend time this week alone, breathing, and focus your thoughts on trying to begin to accomplish your research work to support you in carrying out your strategy by working on your plan. Yes, we should be breathing all of the time. Yes, I am saying to de-stress instead of distress. Yes, we are talking about your strategy as a metaphoric train to carry out your strategy. I am hopeful I can help you train yourself to breathe relaxingly, to consider the work you need to accomplish deeply, for you to undertake your work diligently, and for you accomplish your work with excellence.

So, I ask you: where do you want to go? I hope your answer is to develop the plans necessary to accomplish the strategy you know you need to achieve to arrive at your desired destination. If this is the case, then let’s get to work. If not, then I wish you the best of everything.

I hope we will see each other here next week. Email me if you need to talk before then.

 

Dr. Stephen H. Dawson, DSL

Executive Strategy Consultant

Dr. Stephen H Dawson

Stephen Dawson is an executive consultant of technology and business strategy, serving significant international organizations by providing leadership consulting, strategic planning, and executive communications. He has more than thirty years of service and consulting experience in delivering successful international business development and program management outcomes in the US and SE Asia. His weekly column, “Where Do You Want To Go?,” appears on Thursdays.

Dr. Dawson has served in the technology, banking, and hospitality industries. He is a noted strategic planning visionary. His pursuit of music has been matched with his efforts to lead by service to followers. He holds the clear understanding a leader without followers is a person taking a long walk alone.

Stephen has lived his life in the eastern United States, visiting most of the United States and several countries. He is a graduate of the Regent University School of Business & Leadership. Contact him at service@shdawson.com.

Stephen Dawson, DSL

Vice President Strategic Planning or Business Development
by Dr. Stephen H. Dawson, DSL
February 4, 2021

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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Destination Unknown

 

The Sky Above

“He who angers you controls you.” Unknown

Stephen Dawson, DSL

I am a planner, a work-the-plan, a get-it-done kind of guy. I’m not particularly eager to live without a purpose helping to guide me to a predetermined destination. I modify the plan when it is suitable. However, I adjust the plan with justification for the change. I work on the concept of mapping out where I want to go in comparison to where I am from a figurative standpoint. It works for me and for the customers I have served over my years of caring for them.

2020 had me in the company of what seemed like the majority of the human population. I had more people coming to me for my advice on what they should do amid global health, economic, and political upheavals than I have experienced in years. It became clear to me the pattern resident in these inquires was an espoused anger hiding their genuine fear of the unknown. These people had an unquestionable problem. The answer to this problem was clear: help them with the strategic planning of their circumstances.

I considered at length the anger I witnessed. The Latin adage si vis pacem, para bellum is translated as “if you want peace, prepare for war”. I also heard the angry people tell me they were fighting this and that. They were fighting against COVID-19, fighting for a political agenda, fighting to stay in business, fighting to either have or prevent this or that. It was not clear to me who they were fighting, how they were fighting, and often why they were fighting. I found the deeper I went to understanding their fighting, the more I could see their fears. They were trying to get back to peace by fighting in some type of hostility. I understood this condition, as I struggled with it myself for years.

There are many clear reasons before us today as to why anger has advanced to fighting. A 2020 report from the Corruption Perceptions Index published annually by Berlin-based Transparency International ranked global regions where corruption occurs. A summary review of these regions also found strong economic growth where there is little corruption. The Wall Street Journal reported this week McKinsey is in settlement talks with states over how they advised Purdue Pharma to boost their OxyContin sales. I will spare us both the heartache of addressing the drama trauma of the 2020 US election events. Suffice it to say, there is quite a bit of undeniable defiant aggressiveness by those we are to be trusting for leading us to cause their followers to be upset with their performance, upset to the point of angry, and angry to the point of undertaking some type of fight with them.

WHAT IS THE POINT?

I both read and hear from those around me, and abroad, they feel burned. Burned, in terms of being misled by their leadership. Misled, to the point of metaphorically having their hand burned by being told to trust touching the pot that is quite hot. Misled, in terms of not having income anymore from employment that is no more. Misled, from not being sure what political topic we are working on now as there are so many topics, and a good leader would have the decency to tell their constituents what topic to work on for the moment. Being burned, as it were, is no justifiable reason not to have a plan to carry out the strategy you need to accomplish for your life and for your followers, for you to realize success. I get mad when I burn my hand. I release adrenaline to deal with the pain. It is a form of controlled anger. It is an act of survival, as I am not sure how badly I hurt myself from the burn. I have not cut my hand off as of yet to respond to any burning, any pain, or perhaps the shame of having burned my hand. It took me years to learn being burned, as it were, by an unhealthy relationship is not a justifiable reason to not continue to relate to people. The example I present here is both literal and figurative. They both hurt, and they both changed my behavior. The point is to use the pain of your being burned, perhaps by yourself from not having a plan to accomplish your strategy, to change your behavior now for the betterment of you.

WHAT TO DO?

The most direct form of counsel I can provide anyone undertaking strategic planning is to calm down, eliminate anger, and move to a reasoned position. “He who angers you controls you.” I make this statement because those who have no plan to determine and accomplish their strategy have come to me in a state of calamity. I have no reason to believe this combination will change based on what I know of human behavior. I cannot overstate the value of a calm approach to accomplishing strategic planning. I have seen people achieve this counsel somewhere between a matter of seconds and a matter of years. Sure, some parts of strategic planning can be accomplished from an upset, angered, and even unreasonable position. However, I am talking about getting out of the mess you find yourself in sooner than later. It is not my place to judge how anyone arrived at their lot in life. It is my place to help them move to a better place should they want my help. Better, what is better? We all follow someone, one way or the other. Defining betterment is a question only a follower can answer. Only the follower can answer it because they decide with each step they take to continue following their leader once they have determined their leader is leading them to a place more preferable than where they stand now.

WHERE TO START?

I lived near the ocean for many years. I would spend time daily looking at the beauty of the clouds. The ocean always seemed to have more clouds than land areas. The sky above us, the unknown. I have flown in planes and jumped out of them by parachute. Looking at the sky helps me have a more refined view of the circumstances I face, to help me put things into a more healthy perspective. The sky over the ocean is so much different from the sky over land, such as Tennessee’s mountains. A recent morning had frost in the backyard, reminding me both warm and cold days have colors to alter my perspective of the moment. A significant difference is the amount of heat coming off the continent to the ocean’s vast openness. Get the heat off of you by putting aside anger, deciding to stop traveling to an unknown destination, and begin the work of determining where you want to go. Sure, read the thermodynamics laws as the starting point for your strategic planning if this will help you. However, please do not decide you need to master them before undertaking your strategic planning efforts. The key here is to take action now with your first step. Putting aside anger to meet the fears you face of not having a well-prepared strategic plan now to live this thing called life is a huge step. Take a moment and give yourself the credit you deserve for taking this step.

My journey with music had me performing as an instrumentalist for several decades. I learned so many crucial lessons about enabling followers, those attending my concerts, to appreciate my work by understanding the material I performed with greater depth. They understood it more when I spoke for a minute or two about the song I was to play, either before or after playing each song. It was not me bragging about my greatness or diminishing the listeners who did not know all of the finer points of a tune I would play for them. It was bringing new insight to them about what they were hearing. It matched a story to the song, perhaps a current event, along with what I knew of the audience in that moment, which helped form my spoken words to them. It was augmenting their ability to listen to what they were there by their choice to hear.

It saddens me when someone comes to me and tells me they need strategic planning, want strategic planning, are unsure what they will do without strategic planning, but are afraid they will not do strategic planning well. A music producer I worked with would go and sit with his daughter at her house, who had given up her career as a stockbroker to be a stay-at-home mother. The producer’s grandchildren invariably had other children around. He would attempt to make a point to the toddlers about something he had on his mind. He concluded that if he can get his point across to toddlers, then he has succeeded in his messaging efforts. He used his powerful messaging ability to help me understand how to record better some of what I called pretty good music. If you, at your lot in life, can understand strategic planning as a series of plans involving simple communications, then you have the necessary understanding to undertake your strategic planning efforts. Note, I did not say you have the understanding of a child. What I am saying is you have the innocence of a child. This innocence is a critical success factor in accomplishing effective strategic planning.

The planning of your strategy most likely involves more people than just yourself. It is reasonable to hold a bit of fear that you will harm them by planning poorly. I encourage you not to become angry at them as you find a way to tell them you did not yet prepare the strategy you need to accomplish. Such anger will only harm the relationship you have with them. How many press conferences have you watched in the past few months where either the speaker or an interviewer was angry? How many excuses have you read in the recent business news where low earnings are not the business leadership’s fault? How many times have you seen children trying to learn virtually their school work from home and decide schooling is not worth the pain? There are more than enough examples around us today to understand the gains from having strategic planning more than justifies the pain of getting your first planned strategy written down and executed. Think about you living out 2021 without accomplishing strategic planning. How do you think you will enter 2022 with two concurrent years of little to no strategic planning accomplishments?

So, I ask you: where do you want to go? I hope your answer is to develop the plans necessary to accomplish the strategy you know you need to achieve to arrive at your desired destination. If this is the case, then let’s get to work. If not, then I wish you the best of everything.

I hope we will see each other here next week. Email me if you need to talk before then.

 

Dr. Stephen H. Dawson, DSL

Executive Strategy Consultant

Dr. Stephen H Dawson

Stephen Dawson is an executive consultant of technology and business strategy, serving significant international organizations by providing leadership consulting, strategic planning, and executive communications. He has more than thirty years of service and consulting experience in delivering successful international business development and program management outcomes in the US and SE Asia. His weekly column, “Where Do You Want To Go?,” appears on Thursdays.

Dr. Dawson has served in the technology, banking, and hospitality industries. He is a noted strategic planning visionary. His pursuit of music has been matched with his efforts to lead by service to followers. He holds the clear understanding a leader without followers is a person taking a long walk alone.

Stephen has lived his life in the eastern United States, visiting most of the United States and several countries. He is a graduate of the Regent University School of Business & Leadership. Contact him at service@shdawson.com.

Stephen Dawson, DSL

Vice President Strategic Planning or Business Development
by Dr. Stephen H. Dawson, DSL
February 4, 2021

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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Optimizing Technology in Support of Business Processes

Brightwater Consulting

To move your business forward in this economy, you need to be nimble and efficient to maximize profits as the marketplace changes. And of course, employee safety and cybersecurity are musts.

I’m writing to ask if you have a few minutes to discuss how to boost growth and manage risks while becoming more efficient and effective.

At Bright Water, we offer a wide range of information technology services, from ERP systems to security and infrastructure to technology evaluations and optimizations.

Most important for you to know is that we deliver cost-effective, elite services. Plus, we’re located right here in Atlanta, so you’ll get the best local consultants to help you.

Can we connect for an introductory phone call this week or next?

I look forward to the opportunity to discuss how Bright Water can help you and appreciate that you are busy, so if you’d prefer not to be contacted again, just let me know.

Sincerely,

 

Dan Ricks, Brightwater Consulting

Dan Ricks

Bright Water Consulting, LLC

678-457-3098

danricks@brightwaterconsulting.com

www.brightwaterconsulting.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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Human Resources Bootcamp for Business Owners

FlexHR Consulting Business Bootcamp

HR trends and best practices for business owners and management.

Distress in the workplace lately? You’re not alone.  Flex HR consultants often get asked to come to speak to businesses in various industries regarding the vital HR functions to keep their businesses sustained properly. Thus, Flex HR offers a Human Resources Bootcamp for business owners and managers.

Recently, Flex HR hosted a Human Resources Trends Bootcamp in Denver, CO. This discussion focused specifically on Veterinary Practice initiatives essential to HR that owners and managers must comprehend to stay compliant with labor and IRS laws.

This presentation took a deep dive into HR best practices, current HR trends, clarifying policy, laws, handbook communications, managing millennials, HR operations, onboarding & termination, and of course the impacts from COVID-19. Jim summarized tangible situations and how the repercussions can cost tens of thousands of dollars to your organization. He also outlined the “Risk Factor” of actions that are critical for managing the human side of an organization’s enterprise providing examples on how to get the most out of your human capital, along with tools to take back and implement in your practice. It’s imperative for businesses of all sizes to protect and grow their assets, but lack the HR knowledge to do so. Consequently, nearly 85% of organizations outsource at least some HR functions.*

Jim Cichanski – CEO FlexHR

Jim Cichanski was the presenter. He is the founder and CEO of Flex HR, Inc. and a Preferred Partner of VSG. Jim also spent 26 years in the Army National Guard achieving the rank of Colonel, was inducted into the Officer Candidate School Hall of Fame, and received numerous awards including the Legion of Merit. Jim holds a BA in Applied Behavioral Sciences, is a graduate of the Department of Defense Equal Opportunity Institute, has served on the board of HealthSource of Georgia, and was an inside board member of 17 companies.  He is an active member of many HR professional organizations. He recently served on the Board of Directors for HomeStretch and is an Angel investor in several Human Resources related ventures.

 

FlexHR

Flex HR, Inc. is among the top HR outsourcing and consulting firms, based out of the Atlanta, GA area. They were selected Best of Johns Creek Award in the Business Human Resources Consultant category by the Johns Creek Award Program last year, and this year was inducted into the Johns Creek Business Hall of Fame. The Atlanta Journal-Constitution awarded Flex HR “Best of Atlanta Business Profiles” while Outsourcing Gazette magazine listed Flex HR as the “Top Most Promising HR & Staffing Service Vendors.” For 3 years INC Magazine recognized Flex HR as an Inc 5000 “Fastest Growing Privately Held Companies in America”. Jim was also recognized by the North Fulton Chamber of Commerce as the “Small Businessperson of the Year.” Catalyst Magazine acknowledged Flex HR as 1 of 18 Companies CEO’s in Atlanta would like to own.

 Visit our Coronavirus pandemic page or more information on how businesses are managing their HR assets during the continued consequences of COVID-19.

Do you need an HR Bootcamp for your business or more information? CONTACT US NOW

* Outsourcing HR: Big Savings for Small Business,” by Adam Skolnick, The Fiscal Times, Atlanta, GA, July 22, 2013.

 

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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’

Contact

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

 

 

 

 

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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

 

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