These are some of the scariest words in business!  Really!  Recently I have been told by several successful, intelligent and hard-working executives that strategic planning scares them. Another told me he does not believe that business owners actually do strategic planning. So how are they successful?

The thing is, whether they have a written strategic plan or not they certainly have a plan, if only in their ...

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The holiday season ends one year and begins another.  With it come feelings of hope and dreams for the future.  These are common themes this time of year, but why only this time of year?  Are people not hopeful all year round?  Yet they focus more on hope this time of year.  Perhaps it’s because they take the time to dream about new accomplishments in the coming year.

For business owners and managers this is the time of year when budgets are planned for the next fiscal cycle.  Much time is spent forecasting revenues and profit.  Some will also create new sales and marketing plans for the coming year.  Yet many seem to focus on the financial aspects of planning as a priority.  That seems backward.  Can a football coach decide the score before he makes his game plan?  Dan Gilbert, CEO of Quicken Loans said “The numbers don’t lead, they follow.” Forecasting is a necessary planning tool.  But results come from action plans that are tied to goals, not forecasts.

How are hopes and dreams connected to business planning?  They are part of the company strategic plan.  It begins with the owner’s vision.  What will the business become?  What will it achieve?  It is a statement about the future.  It is a dream.  Now what?  What must be done to move the business towards reaching its vision.  Usually, this means setting near term goals, that is,  for the next 12 to 24 months.  Some call that the Mission and the goals must be mission critical.

After the mission critical goals are set the action plans that will lead to goal achievement must be created.  Without the vision, mission, critical goals and action plans the results for the coming year are left to chance and the people are left to try to succeed without knowing what is expected of them.  That is a risky way to run a business.  Consider a strategic plan that contains these elements to realize your hopes and dreams.  Happy New Year!

A friend told me a story recently that speaks to how to build a business and create customer loyalty.  Her husband and his brother decided to start a home improvement business.  In that region, there were a number of competitors.  Things began slowly and after a few months they struggled to get contracts.

After some time the brothers decided that they needed to find a way to stand out, to differentiate themselves from the other contractors.  They began to ask people “What is the most common complaint you have in dealing with home improvement contractors?”  They were told “They don’t show up.”  Apparently, in that area many of the contractors were known for making appointments that they did not show up for or showed up very late, as in days later.  The brothers decided to be “the guys that show up. “  They made that their slogan and they showed up on time every time they made an appointment.  And their business began to grow.

Many blogs, books and articles have been written recently about marketing.  Many advise that business owners must find a way to “be remarkable” or “be distinctive” to truly differentiate their business in the crowded and competitive market place.  This true story illustrates that finding a way to differentiate your business does not require that you invest time and money in a complex marketing strategy.  You simply must understand what customers want that they are not getting and help them to get it.

There is more to the story.  In working with some customers they learned that some customers, Seniors, have many small projects they need done that they no longer can, or want to do, like changing furnace filters, etc.  So, they adopted another slogan, “No job too small.”  The result of their adding these small free services is that these customers give them numerous referrals to their friends and families.  This effort to build customer loyalty won them free word of mouth advertising and led to their business growing and becoming more profitable.

This is a follow up to my October 7 blog "Employees Want to Know: What is My Career Path?" 

The key question is "Whose career path is it anyway?"  Does a company direct what the dreams of their employees are?  Even if the company makes use of the traditional motivational methods, Fear and Incentive, does it manage to determine where an employee may go with their work life 30, or even 10 years in the future? Not likely.  There are too many variables in the work environment, business successes and failures and the economy in general for a company to have real control over the career path of its employees. The company can provide opportunities for career growth.  But the path of an employee's career is more up to that person than it can ever be up to the company.

What determines the career path of an employee?  First, it begins with their dreams.  Where do they want to go in their work life?  What position, what earnings, what status do they seek to attain?   What do they want to achieve?  More importantly, what is the true passion of their life, both in Professional and Personal terms?

Second, where do they see themselves today?  When you phone someone to ask directions they usually ask you "Where are you?"  This point of reference is needed in order to set a new direction.  Self-evaluation and self-awareness are needed to determine where a person is in relation to where they want to go.

Third, what are the critical steps that will get them where they want to go.  Yogi Berra said "If you don't know where you're going you'll end up someplace else."  For career planning it is important to decide what goals you must achieve to help you realize your dreams.  Then create action plans to enable you to reach your goals and set priorities to help you manage your time.

Companies, mentors, coaches and educators can help to move people along the path.  It is necessary for the individual to set their path and follow their dreams.

During the last 12 years of my corporate career my sales team was a key part of a company that grew an average of more than 25% per year. Needless to say the organization grew at a rapid pace along with the sales revenues. We hired people and grew the number of employees at a pace of about 10% a year. And, there was a lot of interest on the part of our employees to grow with the organization. A frequent ...

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What can a business owner do?  The economy drove down revenues. Costs had to be cut.  The staff had to be reduced.  Now things are beginning to turn around.  Customers are spending again.  Business is turning up.  So, when is it time to begin hiring again?  Should it be as the revenues grow, or when customers begin to complain about service?

A recent experience with a local home service organization made it clear that the business owner chose the latter.  The people who worked on our home delivered what was, in effect, Class C service, even though the owner was charging Class A pricing (based on competitive quoting.)  The question is, was waiting for customer complaints the right decision?

Business competition, today, is such that customers can easily find competitive organizations to service their needs.  A business loses customers quickly if it does not deliver first rate service.  In my case, the business owner wrote a letter of apology.  In his letter he chose to excuse the poor customer service by explaining that he cut manpower due to the poor economy and he has now decided to add more field supervision.  That, of course, is too late for me.  But, is it really the solution to the problem?

When a company is in the service business it is critical that service be the best, period.  Bill Marriott, CEO of  Marriott Hotels, said "Your employees will treat your customers in the same way that they are treated."  Perhaps supervision can help to improve service.  But, training, motivation and pride in their work are the things that create the best possible service because it is the people doing the work who deliver the service.

If a business owner resorts to excuses customers are not going to be satisfied with the service delivered.  Excuses are not the customer's problem or concern.  Apologies are acceptable as long as there is follow up and correction of the problem.  However, it is far better to plan and execute exceptional customer service to please the customer in the first place.


 

If you're running a business what should you focus on first, growth or planning?  Many small to mid-sized companies focus on growth and for many of them it makes sense to do so. But what if your company does not have a strategic business plan put together?  Does it make sense to charge ahead without a plan?  Perhaps. Would you get in your car and head off on vacation without first knowing where you want to go?

Some of the business owners that I have worked with in the past two difficult years have told ...

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One of the basic laws of nature is (commonly) called "survival of the fittest."  The idea being that the organisms that are weak or unable to fend for themselves will not survive and over the long term and only the fittest of the species will survive.

Today, the same idea is sometimes applied organizations, especially those that are set up to be profit generators.  This may be the way things should be.  The question is "What is a fit organization?"  Is it one that dominates its segment by striving to always offer the lowest prices?  Is it one that ranks highest in customer satisfaction according to a well-known national customer survey organization.  Is it one that holds the number one market share in one of the major consumer markets in the USA?  Or, is it one that dominates an industrial supplier market by signing major long term contracts that enable it to stop competition from even being considered as a replacement?

In fact, it is none of the examples mentioned above.  In the overall business landscape all of those organizations are likely to be replaced at some point in time.  The reason I write this is that companies can become strong enough to fend off competition.  But many, if not most cannot seem to fend off major shifts in technology or global economic trends. 

One interesting situation that is developing now is the dynamic in the automotive industry.  The major automotive manufacturers continue to ply their fossil fueled vehicles equipped with relatively low level technology.  Meanwhile several brand new car makers are introducing and selling electric vehicles.  And, Google, of all companies is seeking government approval in certain states to take to market vehicles without human drivers.  What exactly are the current auto makers doing to be prepared to respond to the new consumer trends and the market dynamics in the transportation field?

One begins to wonder if the conventional auto makers are not unlike the makers of steam locomotives were when the first Diesel-electric hybrids were introduced in the early part of the twentieth century.  They continue to fight over a market that is beginning to get smaller as consumers shift their interest to alternative technologies and modes of transportation.  Another factor is the consumer.  There is a trend among young consumers in Japan who do not own automobiles and, in fact, have no interest in owning one.  They do not want to pay the every increasing costs of ownership, including the high costs of parking in their big cities.  They also prefer to spend their disposable income on more self satisfying items like smartphones, netbooks, etc.  The future of this industry will, indeed, be a very interesting dynamic.

What, then, constitutes a fit organization and one that will survive?  My view is that it will: 1. Take a long view of the future of society, technology and the economy via a strategic plan; one that looks out at least ten years.  2. Invest in innovation that serves to respond to the long term trends in society.  3.  Work to encourage innovation in all that they do, not just in their current products and services. 

The makers of steam locomotives were, no doubt, the fittest of the companies making steam locomotives.  What good did that do for them when a completely new technology came along and made their product completely irrelevant?

Are you good at setting goals but not so good at achieving them?  Have you already missed the goals you set for the first month of the year?  Why are you good at setting goals but not so good at achieving them?

Many people set goals with the best of intentions.  They spend hours putting together SMART goals that are planned to help them to improve their health, increase their income, strengthen their relationships, get that promotion or even find that new job.  Before they know it life gets in the way.  As John Lennon said, "Life is what happens while you're making plans."  Much of the satisfaction with goal setting is that is creates an air of expectation.  Like many things the anticipation is nearly as satisfying as the actual event.

Perhaps the reason for not meeting your goals is that, like many people, you learned how to set SMART goals but not how to achieve your goals. One key reason this happens is that "life happens" and before you know it you failed to achieve your goals.  Your time management does not help you to achieve what is really important to you.

Remember that the 'T' in SMART is "Time based".  The purpose for this is to focus your efforts on achieving what you want when you want it.  Did you input your goal plans onto your planner, calendar or e-device calendar?  If not the days and weeks went by and you neglected your goals.  If that happened, don't worry you can always adjust your goals and re-engage yourself in achieving them.

It's better to set goals, even if you don't achieve them all, than not to.  Setting goals gives a focus to your time and your actions.  Remember, many Olympic athletes work for years to be able to compete in the Games. yet many fail to win a medal.  However, they improve their skills and many of them reach the pinnacle of performance in their chosen fields so that they can become coaches and experts in their chosen fields.

It's the start of a new year.  How do you start the year off right?  One great way is to prepare for success.  Success means many things to many people.  At the end of the day it is the accomplishment of your dreams and goals. It takes effort on your part combined with confidence in yourself and a balanced approach to your life.

Start by checking up on last year.  Did you meet your goals?  If not, why not? Were they connected to your overall purpose or vision?  Take some time to evaluate your purpose.  What do you want to become...where do you want to go... what do you want to accomplish with your life, both professionally and in your personal life? 

If  you are clear about your purpose then what do you need to accomplish this year that will help you to fulfill your purpose?  Consider both short term goals, those you need to accomplish in the next one, three or six months, and long term goals, those that you need to accomplish in the next 12 to 24 months?

Check your Personal as well as Professional goals. Keep life in balance and avoid focusing on your weaknesses, unless they are holding you back.  Peter Drucker always emphasized that managers and people must focus on their strengths in order to maximize their performance.

Why set goals?  The famous American philosopher, Yogi Berra, said "If you don't know where you're going you'll probably end up someplace else."  Determine where you want to go, what you want to become or what you want to have and set goals that will help you to get there (them).  

Now, get busy and do what you must to accomplish your goals.  Make sure that your goals are yours, that they are written and that they are in harmony with who you are and with  your overall vision or purpose for your life.  And, have a great year!