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How Many Partners Do You Have?

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“I want to take my business to the next level. We need to grow by 40% this year and 150% over the next 3 years.  But…”

I heard this from a business owner just last week. His “but” was his concern that his staff wasn’t prepared to get it done. They didn’t follow procedures, spent time on unimportant tasks, didn’t think out of the box and looked to him for all of the important answers.  With those issues, taking his business to the next level will be difficult if not impossible.

What he needs are some partners. When I say “partners”, I don’t mean legal partners with a financial investment in the business. I mean people who have an emotional investment in the business. He needs to find ways to make people feel like owners even though they’re not. As the true owner of the business, he may never have a team that’s a passionate as him about growing the business. However, there are things he can do to dramatically increase his team’s level of ownership and passion. By doing this, he can create a team that feels ownership, even if they’re not true owners.

Here are some ways to make that happen:

1.       Conduct Joint Planning & Goal Setting – Typically, goals are set by leaders and passed down to the “rank and file”. Since the team had no hand in setting these goals, there’s never total buy-in. What’s worse, when goals aren’t met, the team blames unrealistic goals, rather than their own performance. Leaders should give their team enough information (company goals, historical performance, strategic objectives, etc.) to set their own goals. Of course, leaders should still be responsible for approving all goals; challenging those goals that are either too aggressive or not aggressive enough.

2.       Help Employees Understand the WIIFM – Most leaders try to motivate by rallying the troops around what’s important to the company. That’s important…but there’s something much more important. People are more motivated by What’s In It For Me (WIIFM). It’s not that they’re selfish, it’s just human nature.  Work with your team members to understand how they’re personally impacted by the business goals that have been set. Notice I didn’t recommend you tell them how they’re impacted. Everyone is different. You (and/or your leadership team) need to work with each team member to find their own unique “why”.

3.       Don’t Have All The Answers – Don’t let your ego get the best of you. Stop dictating decisions to your team and ask your team for advice. This doesn’t mean “management by consensus”. Ultimately, as a leader, you need to make the final decision, but it’s critical to make your team part of the process. Even if you think you know the answer, ask your team what they think first, before dictating a decision.

4.       Encourage Conflict – Does your team get along great? Do you always seem to agree with each other? Do you have trouble remembering your last major team conflict? This may seem strange, but if you answered yes to these questions…you’ve got problems. A team needs conflict to evolve. Think of it as Darwin’s theory of evolution for business. If good ideas don’t crush bad ideas, and great ideas don’t crush good ideas, a business (and its employees) will grow stagnant and die.

Implementing these ideas will certainly allow business owners to do a great deal more than just increase revenues. Having additional “partners” in a business will also increase productivity, improve morale, enhance customer loyalty, increase margins and maybe most important of all, reduce stress.

How are you cultivating partners in your business?

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How Do My Goals Contribute To The Strategy?

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Strategy and goals should influence everyone’s behavior in the organization!

The work at the top of the organization in creating strategy and goals is intended to influence behavior that drives results. Unfortunately, it’s not unusual for the primary impact of the work to remain at the senior management level. It’s kind of like having a car with an engine and no wheels. Despite the importance of driving the strategy and goals deeper into the organization, the messages as to how the strategy relates to execution typically become unclear and confusing the further down they go.

Passing goals down without creating meaning causes frustration…

The responsibility for creating clarity around what the strategy means at the business unit, team and individual levels, and for ensuring that the strategy is executed is a shared management responsibility.

There are many dynamics within fast paced changing organizations that contribute to the lack of alignment. However, the biggest obstacle appears to be “a lack of understanding.” Why is this? Repeating the company strategy is easy enough, but without translating strategy into relatable actions with those who are expected to execute at every level of the organization, has limited impact. When managers involve people and teams they lead in these discussions, SMART goals can be written that connect everyone’s contributions to the strategy. It also improves sustained commitment through the ability to measure ongoing results.

Planning backwards focuses on results…

Managers can facilitate the process by asking three questions:

  1. How does the strategy affect our unit?
  2. What must we accomplish?
  3. How will we accomplish it?

Through this process a shared language and framework for how to think and talk about alignment occurs among the team/department enabling them to match their behavior to a set of commonly understood goals and actions. To create focus on the truly critical goals to your team and the company, apply the following questions as a litmus test to each of the existing goals: 

  • What is its economic impact? – How will this goal contribute to company performance?
  • Is it aligned with the company’s strategy?
  • How will it satisfy stakeholders?
  • What is my level of passion, talent, and energy for it?
  • Do we have the resources? 

If people in the organization don’t understand how the company is supposed to be different and what opportunities they are to pursue, how can they make the tough choices that they have to make every day? (Porter, 1980)

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One 3-Letter Word You May Want to Rethink

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Let’s talk about a word we probably all use frequently—it’s a very powerful word, but not in the way you might think.   It’s the word TRY.  How often do we use that word in the context of something we are doing, a goal we are setting, an objective we are reaching for?  It’s hard to even write that last sentence without using “try,” as in “something we are trying to do, an objective we are trying to achieve.”

“Try” has become part of our vocabulary, but it limits our abilities to focus on a goal and commit completely to achieving something.   As a way to illustrate this, let’s do a quick activity.  If you are sitting down, stand up.  Are you standing?  Now … try to sit back down.  No, don’t sit down, TRY to sit down.  How did that work?  What do you notice?   The bottom line:  You can’t try to sit down – you either sit down or you don’t. 

Is that same principle not also true of goals or something we set our minds to – that we either do them or we don’t?  We either accomplish or don’t accomplish what we set out to do.  In a take-off from what Tom Hanks said in the movie League of Our Own,  “there’s no trying in life.”  (Well, he actually said, “there’s no crying in baseball,” but you get the point!)

The point is that you can’t try to achieve whatever you set out to achieve – ultimately, you either achieve it or you don’t.  Consider how often we either hear others say “try” or we say “try” ourselves.   How much more powerful and accomplished might we be if we took that pesky three-letter word out of our vocabulary?  Here are some examples across a wide spectrum of areas:

  • Your kids:  from “Yes, Mom, I’ll try to get my homework done before dinner,” … to … “Yes, Mom, I’ll get my homework done before dinner.”
  • In a meeting at your workplace:   from “I’ll try to talk with them about the project,” … to … “I’ll talk with them about the project.” 
  • With your wife/husband/significant other:  from “Let’s try to spend more time together on the weekends,” … to … “Let’s spend more time together on the weekends.” 
  • In your life:  from “I’m trying to exercise three times a week,” … to … “I am exercising three times a week.”

Do you notice the difference in how the statements above sound when the word try is in them or not in them? 

So, here is your challenge:   For the next week, don’t just try to do whatever you are focused on – do it without the “try” in your sentence.  Catch others in the act too – have them try to sit down to illustrate your point.  And as always, let me know how it goes!   

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DON’T Use Business Metrics…At Your Own Peril

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They say what you don’t know won’t hurt you, but nothing could be further from the truth when you run a small business. If you operate based on “gut instinct,” or you make assumptions on how your business is performing without knowing the facts, you can run into problems quickly. Fortunately, there is a simple solution. By monitoring a few key business metrics, you can quickly gain a handle on your business and start on the path to improving your profitability.

Business Metrics
Business metrics, or measurements of business activity, have long been seen as the exclusive tool of the pure number cruncher, the bookkeeper, and the statistician. That’s no longer the case. In today’s increasingly flooded marketplace, the mantra must be: “You can’t manage it if you can’t measure it.” By defining the metrics that are important to your business and monitoring them closely, you gain three key benefits:

– Focus. Defining the metrics that are most important to your business allows you to tune out everything that isn’t related to those key measurements. As a result, you’ll find that you and your business are much more efficient.

– Better Vision. Companies that monitor metrics can spot threats and opportunities faster than companies that don’t. Your metrics will give you keen insights into what’s happening within the four walls of your business as well as overall trends in your industry.

– Better Decisions. Metrics provide a framework for making business decisions. With the numbers in black and white, you can make well-reasoned decisions on how to proceed. If it improves your key metrics, consider it. If not, move on.

Implementing Metrics
Getting started with metrics is easier than you might think. Many small business owners don’t understand how simple it can be to collect and analyze these important numbers. A simple seven-step process gets you started.
1. Define Your Goals. Make a list of business goals. Goals might include sales objectives, target profit margins, or success at signing up new customers.
2. Define the Metrics. For each business goal on your list, write down a metric that will help you track your progress to success. For example, if your goal is signing up new customers, your metric might involve stating the number of meetings you will have per week with perspective customers.
3. Benchmark Current Status. Now that you established your metrics, you need to measure them. You must determine exactly how your business is doing, even if the truth is hard to swallow. By establishing the current value of each metric, you will be able to track your improvements in the future.
4. Put in Place a System to Monitor and Report Metrics. You may need to add new business processes that will help you calculate and report your metrics. For example, is the number of your customers who view your customer service as being “excellent,” then you may want to survey your customers every month and ask them how you are doing.
5. Communicate Metrics with Employees. Once you’ve defined the key metrics that are important to your business, be sure to let your staff know. Then, everyone can make decisions that help improve the metrics.
6. Review the Metrics and Make Decisions. With your metrics in place, you have greater insight into which strategies work and which don’t. Review the metrics and take steps to improve your results.
7. Promote Successes. When your metrics improve, let your staff know and reward everybody that helped make things better.

Effective use of business metrics can have a profound impact on your business. As you gain a better understanding of your business and move closer to achieving important goals, your day-to-day work will become easier and your staff will be more accountable to the metrics that matter. You’ll make better decisions, based on data, and you will have a powerful new tool for managing your business.

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The Biggest Killer of Business Growth

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Last week I asked a friend of mine about his business. He told me that he’d had a pretty good year so far but felt frustrated. For the third year in a row, he’s falling short of his annual goals but feels complacent since he’s still doing okay financially.  That complacency has lead to him making fewer calls, having fewer meetings and doing less business than he’d like.

What’s the biggest killer of business growth? It’s not lack of skills or talent; it’s not a poor business plan or even the economy.

The biggest killer of business growth is COMPLACENCY.

How do you know complacency is killing your business growth?

  • You know what to do to grow your business but, for some reason, you’re just not doing it.
  • You’ve lost the excitement you used to have for your business
  • You seem to constantly hit a plateau in your business but can’t get to that next level of growth
  • You set the same goals every month or every year without challenging yourself to get your business to the next level

The antidote for complacency is PASSION. Here are some steps that will help you to get passionate about your business again:

1. Create a 3-year vision for your life in the 6 areas of the life wheel below.

Don’t get too detailed. Spend about 90 minutes and create a compelling future by writing a paragraph or two for each area.

2. Rate yourself in each area. Where are you compared to your vision on a scale of to 100%? If you’re at 80% or above in each area, it’s time to create a new, more compelling vision.

3. Define 1-2 goals in each area that would get you closer to your vision. Goals should be SMART (Specific, Measurable, Achievable, Realistically high and Time targeted).

4. Document your emotional “why” for the highest priority 2-3 goals on this list. Your “why” should include how your life will change if you accomplish the goal. What are the rewards of achieving the goal? What are the benefits of not achieving the goal?

5. Create a detailed plan for the top 2-3 goals. This plan should include specific action steps and target dates.

6. Read your 3-year vision daily to keep your excitement about the new, compelling future. Find other ways to keep the vision in front of you.

7. Update this vision annually.

8. Update your goals as needed.

Have you been complacent and found some ways to regain your passion? If so, I’d love to hear how you did it.

Are you complacent now? I’d love to hear how it’s impacting your business and/or what you plan on doing about it.