Your Philosophy Around Talent Makes A Difference

Your Philosophy Around Talent

Your Philosophy Around Talent Makes A Difference… Having a company full of “A Players” does not guarantee success, but it significantly raises your prospects.

As a Business Coach, I have worked with many organizations and see the differences between the companies that produce short-term success, long-term success, and those that flounder. There is a vast difference in how the long-term winners build their organizations and their results versus everyone else. The factors that cause these results are known, often discussed, and rarely emulated. Your philosophy around talent matters!

Identify any company you consider great, and you will find that the greatness was 20 years in the making. You have probably heard revenue is vanity, profit is sanity, and cash is king. If you are producing high levels of success in all three measures, you should be proud. Not many companies can boast such performance. And still, you may not be built to last. What worked in the past may not work for the future. 

Most businesses will never be innovative, transformational, or trailblazers. However, all can have extraordinary growth in revenue and profits. An example most of us know is Southwest. They don’t have the most revenue (10th), largest fleet size (5th), or passengers flown (3rd). However, they broke the mold when measuring cumulative profit over 30 years. And, they copied and better executed another companies business model. 

As a business coach, I help companies build great companies and develop the best leadership practices to stay great. I help address organizational habits that cause growth ceilings. Or worse, your habits could lead to a decline or even failure. I see my job as a blind spot remover. One of the keys to your success is your leadership philosophy around talent.

First Who Then What

You can’t discuss enduring success without addressing the elephant in the room. Your business will only be as good as the people that operate in it. Jim Collins nailed it in “Good to Great, “first who then what!”

Many companies have a few great people, but few can boast the best talent throughout the organization. Most leaders will tell you that they are great at selecting people, but the data proves otherwise. Most companies don’t have the measures to know and only use their income statements as their measuring stick. The stark truth is that at least 30% of your employees are not performing and hiding in plain sight.

As I wrote in Your Business is a Leaky Bucket, even great leadership cannot overcome the limited abilities of “B” or “C” talent. Often, leaders can only go as far as those they lead. Think about it from a coaching perspective. You could have a world-class coach, but if you have a team of players with mediocre athletic ability, you’ll only get so far. The coach can draw up all the plays he wants, but the team has to execute them on the playing field. Players have to make split-second decisions and make the plays as the game unfolds. The players determine whether you win or lose. Business is no different.

Great leadership puts a person in a position to excel and succeed, but that person still has to do all the heavy lifting. It has been said that a great leader is like a gardener who plants seeds, makes sure that the soil has the right nutrients, and then nurtures the soil. The gardener cannot grow his crops, and he can only provide the right conditions for growth and plants the right seeds. 

Trust me when I say it is imperative to have A-rated talent to obtain optimal results. Then it takes leadership to keep them at that level. Now, don’t think of this as a process of rating people. Instead, it is about establishing the standards for every employee. Only after specifying measurable objectives can you hold your team accountable. Incomplete hiring and accountability practices, not putting people in the right seats where they can excel, failure to hold people accountable to key outcomes, and weakness in your culture represent poor leadership.

One of the biggest profit leaks in your company may be related to your philosophy regarding personnel. The highest cost in most companies is payroll; therefore, your biggest asset or investment is people. How seriously are you and your company taking this investment, and how disciplined are you in demanding that it produces an adequate standard of performance?

I have enjoyed coaching excellent teams and have experienced the pain of excessive numbers of wrong team members. It is no surprise that when the leadership team is weak, so is everyone else. An “A Player” will not survive a “B” leader or tolerate being surrounded by “B” coworkers. Birds of a feather flock together. We have looked at the success rate of our engagements, and Clients that put heavy investment in filling their organizations with “A Players” far outperformed the rest. Worse, companies with “B” leaders, particularly CEO, moved sideways at best. We would use the same process, same coaches, and double the effort to help the “B” team. We always fail to make sustainable progress with a “B” team.

What Are “A” Players?

 “A” players are employees who consistently meet productivity requirements (performance standards) and consistently live your company’s core values. Your productivity requirements should be set at a high bar and be readily achievable. Do not place the bar so high that it takes a unicorn to fill your position. Regardless of the role, strong performers can produce at two to three times the output of their peers. Many organizations, however, label the wrong people as their “A” players. You may be favoring people you can identify with more personally, that you have less conflict with, who have organizational tenure, who have the most institutional or industry knowledge, or that you consider loyal to you. They are not necessarily “A” players. If you are like many leaders, you may be giving more weight to only a few attributes or qualities you find important. Unfortunately, those may or may not be critical to the position’s real mission, purpose, or success.

I had a client who had an issue with his controller and was leaning toward dismissal. This was a sales culture, and the CEO favored outgoing and communicative people. He felt the controller did not fit his culture. The controller was reclusive and preferred to work in a quiet place to concentrate. Also, this controller was not afraid to tell the CEO when the company was wasting money, even if it was the CEO doing so. The controller was very focused on precision and getting things right. She often voiced concerns when other leaders exaggerated their points or made decisions with no supporting data.

The CEO failed to realize the issues he had with the controller were not related to her skills and talents. Instead, they were related to her behavioral style, which differed from the CEO. The controller’s behavioral style helped balance the leadership team and was essential to her being a suitable controller. Being the decisive and outgoing communicator that the CEO preferred was not a necessary quality for being a competent controller. The controller lived all of the core values of the business entirely. Moreover, everything produced by the department was helpful and accurate. Furthermore, she treated the company as if its assets were her own, protecting the owners.

So what causes someone to be categorized as a “B” or “C” player? A “B” player consistently lives all of your organization’s core values but is not meeting 100 percent of their position’s productivity requirements. A “B/C” player performs at the required levels but does not consistently demonstrate one or more core values. “C” players are failing to meet the performance and values standards. In all cases, anyone who is not classified as “A” should only be kept on your team if management believes they can become “A” players with proper training and coaching within an acceptable period. If not, the best thing you can do is replace them speedily.

Three Types of A-Players

Earlier in my career, I took over a new role and fired our top producing salesman. The owners thought I was nuts. We had about 20 salespeople and his book represented 20% of our revenue. What the owners were not seeing was how he affected everyone else. I spent approximately 5 hours a week dealing with issues presented because of this person, including a sexual harassment claim, which turned out to be a repeat offense. I stuck to my decision and fired him. In the end, our company, which had been declining in sales the three years previous to my being hired. After firing this toxic employee, revenue started growing immediately. Within 30 days of firing him, our largest client (representing 10% of revenue) called the President and said it was about time. They had been diverting business to our competition because they found him toxic. They immediately began ordering more from us.

There are three types of “A Players:”

A1 – They are great in their current position. We would hire ten more just like them. These people are not promotable, love what they do, and are passionate about their work.

A2 – Is someone you believe can be promoted 1 level. They have done very well in their current role and have the skills, desire, and ability to take on higher responsibilities. They can help produce more people just like them by sharing their knowledge and experience and representing your core values daily.

A3 – Is someone you believe can be promoted to two levels or more. They have traits, capabilities, and the desire to lead others.

One last comment about “A Players.” Too often, leaders create arbitrary performance standards. I have found this to be a large problem. The standards are set, and no one consistently hits them. When people miss them after giving 100%, they can be labeled as “not performing.” This leads to lower performance and eventually termination. I recommend you use much rigor in developing reasonably high-performance standards. Failure to do so costs you a lot more than you realize.

Eight Questions to Ask When Someone Does Not Perform at an “A” Level:

(1) Have you adequately communicated expectations?

(2) Has this person been an “A” player in the past? If so, what has changed?

(3) Does the person have the skills and knowledge necessary to perform his or her job at a high level?

(4) What training is required to get this person to peak performance?

(5) Has the organization created unnecessary barriers to this person becoming successful?

(6) Do you believe this person will achieve productivity within a reasonable amount of time?

(7) Does this person believe in your core values, and is he or she willing to live them?

(8) Which processes, if fixed, would lead to better success in the future?

Answering these questions will help you diagnose the issue(s). Sometimes team members are well past the rebound zone. That is, you simply cannot resurrect their performance. Other times, with a little redirection and emphasis on coaching, mentoring, or training, an underperforming person can bounce back. Either way, you have to determine the exact problem and then take great strides to address it.

Why is the “B” and “C” Performance Issue Not Being Addressed?

The primary reason employees are permitted to underperform is a lack of clarity in leadership. Leaders are often too busy doing their jobs to focus enough time and energy on what they want from their team. And when they have a good idea of precisely what they desire, often they do not adequately communicate it. Even then, performance is usually not being measured to allow a person to be held accountable.

Most sharp business owners do measure the performance of their businesses on at least a monthly basis. Still, they fail to relate that measurement to individual employee performance properly. By not requiring a specific level of performance, monitoring that performance, and holding employees accountable, you allow your employees to establish their performance requirements. Common sense tells me your employees will set lower work standards for themselves than you would.

You may be wondering how “B” and “C” performances can cost a company millions and go unnoticed and unaddressed. The primary reason: There is no financial statement line item to quantify the cost of the lost clients, lost productivity, mistakes, and lost opportunities attributable to these nonperforming players. This begs the question: Why would you ever even consider keeping a “B” or “C” player?

 When Do You Keep “B” or “C” Players?

Keep a “B” or “C” player when you confidently believe they will become an “A” player within a reasonable amount of time. If you cannot define how and when that will occur, stop fooling yourself and cut the cord. With that said, you may have to keep a person on board until hiring their replacement. At times, prematurely forcing a vacancy will be too disruptive. Be careful. I find that keeping the wrong person is costing you far more than you ever imagined.

Leaders have many excuses for not replacing their “B” or “C” players. All of the reasons boil down to either leadership laziness or just plain poor leadership. Let’s again clarify the definition of the “A” player. They are not extraordinary. They are people who meet the requirements of their positions and fit your culture. Anything less, and you are overpaying for a position.

Every company leader I have met who had a cash flow problem or was unsatisfied with their growth or profits also had a people problem. Growth problems attributable to bad strategy are the result of people problems. Companies that choose the right people (including advisors, consultants, and coaches) are less likely to have strategy problems. Think about it. The employees of any business are like the cogs that keep a machine running. Doesn’t it make sense that the machine won’t operate at optimum performance when you have broken, incorrect, or rusty pieces inside of it?

It is rare to find a company that already had the processes in place to allow them to demonstrate that at least 75 percent of its employees were “A” players. In fact, most had 40 percent or even less. Many initially believed they had 75 percent or more, but that was a wish and a prayer, as they were not tracking any performance indicators to prove their people were performing.

Research shows that replacing even one “B” or “C” player with an “A” player has a significant impact on a business. Some companies misunderstand what could happen if they commit to doing what it takes to achieve A-player performance in every position in their company. They create walls or personal obstacles, some of which sound like this:

 – There are not enough “A” players out there.

 – It will take much longer to hire people.

 – It is too complicated.

 – It takes too much workforce.

 – It can’t happen in our industry.

 – I have to fire everyone who is a “B” and” C” player.

 – “A” players must be paid more than “B” and “C” players.

The truth is that these are all myths and limiting beliefs, allowing leadership to continue to justify poor hiring practices and maintain the status quo.

The Container Store provides one of the best examples of building an organization with “A” players. I was fortunate to hear Kip Tindell, founder of The Container Store, share his formula for making a great organization. He built his company from a small start-up to one of the most respected businesses around. By enforcing an “A” player mantra, his company grew 20 percent a year to well over $1B in revenue. His formula has five crucial keys to success:

(1) Pay – They paid 50 percent to 100 percent above the industry average. Tindell knew one great person could do the work of two to three ordinary people. “A” players pay for their “extra” salary threefold, so overall labor costs are lower than the competition. His people are incredibly proud to be part of the company.

(2) Recruiting and Retention – To win, he knew he must only hire great people. “A” players only like to work with other “A” players. They do not want to be surrounded by mediocrity. They would choose to be in his company to be on a great team. They wanted more of the best and brightest out of school. This means his recruiting process had to be phenomenal to find and select the right people and never settle. This resulted in less than 10 percent turnover in an industry that typically experiences over 100 percent turnover.

(3) Training and Onboarding. Tindell provides eighty-four hours of formal training in the first year compared to the industry average, which is eight hours.

(4) Real transparency and communication. Your leaders and managers can thrive with clear communication and transparency. If they don’t feel sufficiently informed, they feel left out, and their performance will suffer.

(5) Culture is everything. Free the employees to choose the means to the ends, but tell them the foundational principles to use in making those decisions. All employees will give you 25 percent of their efforts, considered the bare minimum amount of productivity required to keep your job. To get the other 75 percent, they have to love their manager and culture.

In each of these steps, you’ll quickly come to a singular conclusion: Great leaders invest enormous time and energy into their team. They create a culture that invites in “A” players and demands an A-level performance.

 Actions to Take

What steps can you take to build a high-performance organization? Just like any machine that takes proper maintenance and attention to run smoothly. Lack of timely care to problems leads to more costly repairs. So likely, we can all agree it is much more efficient and cost-effective to ward off those repairs. People already spend enormous amounts of time interviewing candidates. They need to learn the right techniques and processes to determine whether the people they interview are the right choices for the positions. The real challenge is instilling an organization-wide commitment to high-performance standards, and practice makes perfect.

There is no one-size-fits-all sort of remedy. Different companies require different solutions. Remember that you’re dealing with real people and problems, so do not remove the compassion from the equation. Classifying someone as “C” or “B” in their current role does not mean they cannot become an “A” player in another position or possibly in their existing position, with just a little more training.

It has been said, “That which gets measured gets done!”When measurement tools are in place, leaders are shocked by how many employees fit the categories of “B” and “C” players. This performance gap costs companies millions in profit leaks. However, you can take several steps to resurrect and improve your organizational productivity.

 Six Steps to A-Player Status:

(1) For each position in your company, identify two to three key performance indicators that the person in the position has direct control over and would prove they are performing well in their job. Establish a high but realistic standard for each indicator.

(2) Communicate these indicators and the standards to the person in the position and measure actual performance versus the rules you’ve set.

(3) Establish a process for continually reinforcing your core values with all of your employees.

(4) Every quarter, review how consistently each member of your team lives your core values and meets the performance expectations of their role

(5) Put employees who are not living your core values or meeting performance expectations on definite performance plans to direct them toward achieving the desired performance.

(6) Take immediate action to help employees who are not meeting their requirements. Those who cannot meet your standards should be replaced.

 

Howard M. Shore, Founder and CEO of Activate Group Inc., is a bestselling author and serial entrepreneur specializing in liberating leadership teams from the barriers holding them back personally and professionally. During his 35+ year career, Howard has helped create over $1 Billion of value and authored two best-selling books, The Leader Launchpad and Your Business is a Leaky Bucket. Howard cut his teeth as the owner of several successful companies and executive for Fortune 500 companies like Ryder Systems, AutoNation, and KPMG. Howard has become a sought-after business mentor, executive coach, and keynote speaker. His clients work in family-owned, multi-national, public, and private companies ranging from $1 million to over $1 billion in annual revenue. With a 30-year track record of success, he guarantees any organization using his methods and systems will become more profitable, stable, and scalable.

Leaders Get Out of Your Own Way

Get Out of Your Own Way

The CEO of a manufacturing company recently approached a business coach because he was frustrated by his organization’s performance. He knew it was underperforming, failing to achieve his objectives, had never had positive cash flow since he took the helm, yet he could not put his finger on why all this was happening. He thought that implementing a good leadership operating system would make all his problems go away. Little did he know that poor leadership was the cause and everything else was effect… Leaders Get Out of Your Own Way!

Without boring you with too many details, the coach facilitated a three-day retreat with the executive team, and it was clear why this company was having trouble. While this company did need a leadership operating system that could help guide them to make better and faster decisions, create winning strategies, limit focus on a few key priorities, align everyone, and hold people accountable, this company faced a bigger problem. The main issue was the dysfunction amongst the leadership team itself. Worse, the CEO could not see that his behavior was the center of it. He loved to argue every point, even when it did not matter, hated to lose more than he loved to win, belittled his leaders at every turn, and had to put his stamp on everything.

After several working sessions with the coach, the team came clean and told the CEO how they felt. Rather than taking this as an opportunity to grow and shift, the CEO’s ego took hold. He told everyone in the room that he did not believe he needed to change, and if they could not stand the heat they should find another place to work! As his coach tried to work with him to see how his people had become “yes” people, the opposite of what he told them he wanted, he became even more adamant that maybe they were just the wrong people. We call someone like this un-coachable. While the coach could help implement the leadership operating system, the effectiveness of the system was severely compromised by the inadequacy of the CEO, leaving an enormous amount of profit and growth potential on the table.

Are you concerned about how to get more out of your team? Have you wondered why one team functions better than another? Have you noticed that your team members are not contributing much in your meetings, but you know they have valuable ideas? Or worse, are you now questioning their capacity to grow.

I share this story right from the start because much of our success as coaches depends on how coachable our clients are. The tools and processes are only as good as the people we work with. Most companies have a lot more growth and profit potential staring them right in the face. Having a great team is right around the corner, but they can’t see it. Less stress, more control over the business, less drama, and happy customers can be more simply attained. The secret can be found in their “Leaky Bucket.” I discuss this in detail in Your Business Is a Leaky Bucket: Learn How to Avoid Losing Millions in Revenue and Profit Annually

The Leaky Bucket concept is very important. The leaks covered in the book will not be found in your financial statements. Yes, they impact the results, but not in ways that are easily measured. I used the Leaky Bucket as a metaphor to help you visualize cash pouring out of a bucket through lots of various sized holes. You can also imagine water flowing over the top because the bucket has not grown fast enough.

I mention my book because this whitepaper, goes deeper into the issues related to profit leak number 1, “poor leadership.” When you make allowances for poor leadership, you are deciding that a substandard leader has more to offer than everyone else put together, which is a fool’s bet. Your ineffective leader causes everyone else to perform at lower levels. You lose access to a lot of great ideas, and people are less apt to willingly give extra effort.

In this whitepaper, I want to address three issues that I have found that have the biggest effect on our ability to maximize success with a client. All three factors can be addressed through training and coaching as long as the “student” is a willing participant.

  • Ego Traps – It is obvious to most people that having too big an ego is not an appealing trait, and nothing good comes from it. Therefore, it is amazing how many leaders are unconsciously walking around daily suffering from an ego problem and inflicting harm to their careers, their team, and their organization.
  • Strength in Dealing with People – A lot more attention needs to be given to soft skills in the college setting. Too many people are walking around the workplace with little idea on how to properly work in teams, how to communicate effectively with others, and just practice simple people etiquette.
  • Learning How to Say “No” – I am sure you will agree that people are too conditioned to say “yes.” Learning how and when to say “no” is crucial to the success of your organization.

Ego Traps

After 35 years in the workforce, I am convinced that the number one hindrance to peak performance is ego. While you would no doubt agree with me, and are probably saying to yourself “duh”, ego problems are the least dealt-with issue and are the most severe the higher up we go in organizations. This is significant because leaders have more of an impact on their organizations than their subordinates. When you have a senior leader with an overinflated ego, business life is a train wreck!

If you have not read it yet, The Ideal Team Player, by Patrick Lencioni, must be at the top of every leader’s must-read list. In this book, Patrick recounts a story about leaders that discover the three virtues that are necessary to avoid having assholes working for them. Sorry for the language, but that was the story line. While it seems obvious in hindsight, he was right to identify that you are not an ideal team player if you do not possess humility, hunger, or common sense about how to interpersonally deal with people. I am going to deal with the last item later in this whitepaper. In his book, they describe people who lack humility and interpersonal skills as “bulldozers.” Imagine what this does to employee engagement, turnover, productivity, and so on. There is no way your organization could operate near its peak performance. Worse, it would be hard for you to recruit top talent or talent in general. Who wants to work for a “bulldozer?”

Are You Even Aware That Your Ego is Causing a Problem?

You may find this difficult to believe but many people do not recognize when their egos are clouding their judgment, swaying decision making, causing favoritism, inciting organizational strife, stifling teamwork, and causing high turnover rates. They refuse to consider the ideas of others, and in many cases, do nothing because they are afraid to be wrong. Ego is a blinder and a form of self-sabotage. It stops them from processing information and seeing the world as it is. In some cases, they are more concerned about themselves and blinded by the beauty of their names in lights that they fail to realize that it is not all about them, that others contributed to the results, that others are not there to serve the leader’s greatness, and that their job as the leader is to bring out the best of others.

 “Success comes from knowing that you did your best to become the best that you are capable of becoming.”John Wooden

Do you easily compliment or praise teammates without hesitation? Do you easily admit mistakes? Do you easily take lower-level work for the good of the team? How easily do you defer credit to the team for accomplishments? Do you easily acknowledge and seek help for your weaknesses? Do you offer and accept apologies graciously? If your colleagues do not indicate that for each of these questions you “usually” act in that manner, you have an ego problem.

There are Two Types of Ego Issues

There are two primary ways in which Ego manifests itself. The first is when someone thinks too highly of themselves. This person spends a lot of their time making sure everyone knows how great they are, making sure they get their time on stage. You get to hear their incredible opinions, taking all the credit for success, posting their picture every two minutes on Facebook and Instagram to show you everywhere they are, who they’re with, and their latest recognition. We will refer to this as false pride. The second type, is fear or self-doubt, which is when you think less of yourself than you should and are consumed with your own shortcomings. In many cases, these people can be more damaging than the false pride folks as they can significantly erode their effectiveness or the effectiveness of their departments.

One of the hardest challenges for leaders is to remain grounded in the face of their success. When everyone defers to you, it must be tempting to start believing your own press releases. It must be easy to think: I am smarter, more charismatic, and more powerful than everyone else. As

leaders reach a point where they believe their opinion matters more than yours, they stop listening. And that means they stop learning.  Leaders dominated by false pride are often called controllers. Even when they don’t know what they are doing, they have a high need for power and control.

As an Executive Coach, I’ve encountered many controllers who really believe their people cannot possibly decide without them. They act as bottlenecks to their organizations because everything has to flow through them. They honestly believe they are right every time; every change they make to a document was crucial to its success; they are the best at selecting new employees; and they are expert at every function in the company. This is, of course, buffoonery, but they cannot see it. They can see everyone else’s mistakes but their own. The organization ends its days cleaning up their leader’s messes, doing double and triple the work, and keeping their ideas to themselves because there is no way around it.

At the other end of the spectrum are the fear-driven managers, often characterized as do-nothing bosses. They are described as never around, always avoiding conflict, and not very helpful. They often leave their team members alone, even when these individuals are insecure and need help.

Do-nothing bosses don’t believe in themselves or trust their own judgment. They value others’ thoughts more than their own, especially thoughts from those to whom they report. Thus, they rarely speak out and support their own team members.

Solutions to the Ego Barrier

The great thing about the “ego” trap is that it is a coachable issue. Now keep in mind, one is only coachable if they desire being coached and want to change. If not, you can stop reading because the person you’re dealing with is not going to change.

In The Ideal Team Player, Lencioni suggests we make the three virtues mandatory in our organizations. If someone is not willing to be coached and does not address their humility problem, I would remove them from the organization. In the long run, such people will cost you far more than they can possibly be worth. They cause everyone else to be less effective, and no one person is worth more than the many. If you happen to be a subordinate of this person, and there is no chance they will be replaced (because they are the owner or CEO), then my recommendation is to leave. You will never receive the appreciation you deserve. They will always cause unnecessary drama for you and other teammates, and there will be more pleasurable places to work. Life is too short, and you deserve better!

Now if you want to address the ego barrier here are some practical suggestions for developing your humility:

  • If you suffer fear or self-doubt, it is important identify the cause of your insecurity. I would work backwards in time to discover when it started and how it manifested. Whatever the cause, it is often helpful to share your issue(s) with teammates and manager and ask them for help to overcome it/them. While this seems counterintuitive, it is often liberating when you share with others. You will often receive a lot of empathy and support, and it makes it easier for others to coach you through it when they realize you are aware of your issues and want help.
  • Practice giving credit to others. Giving credit to others helps break your habit of taking credit for everything. A great exercise every leader should practice is to find a least one genuine compliment you can give to at least one employee daily. Keep track and see how many times you give praise versus criticism daily. It is instructive. Leaders that lack humility really struggle with this one at first. I can remember one client with more than 60 employees that refused to do this exercise after their culture survey came back indicating that employees felt they rarely if ever received praise from any managers in the company. In this person’s mind, it was the equivalent of giving everyone a trophy for showing up to work. The CEO felt that it was not appropriate to compliment someone for doing their job. You will not be surprised to know that this organization receives very low employee engagement scores every year and has a serious problem recruiting new employees.
  • Be vulnerable. People cannot relate to superheroes. Recognize and acknowledge your weaker points. On a piece of paper, identify the skills you are weak at. Identify the behaviors that get in your way. Next, I want you to draw 4 squares on a piece of paper. In Square 1, list the activities in the company that you love to do and are great at. In Square 2, list the activities you do that you are great at but don’t like to do. In Square 3, make a list of the activities that you are involved in that you are not good at but like to do. In Square 4, list the activities you are involved in that you are not good at and don’t like to do. If you do not have a fair number of items in 2, 3 and 4, you were not brutally honest. Now sit down with your team and share with the team what you have learned. Show your humility and immediately delegate everything in boxes 3 and 4 to others because there are people who can do those items 5 to 10 times faster and better than you. Stop meddling. Ask your teammates if they agree with you in terms of your strengths in boxes 1 and 2, and be willing to hear them out. Anything that you should have put in boxes 3 and 4, delegate to others. Then figure out what from Square 2 you can give to someone else.
  • Seek mentorship. Find three people you trust to serve as mentors. Choose mentors you can trust to tell you the truth even when it hurts. Make a commitment to listen to their opinions with an open mind.

Strength in Dealing with People

The second most crucial issue I see holding back organizations is how leaders treat their people. In Lencioni’s The Ideal Team Player, the essential virtue of “smart”, which he describes as a person’s common sense about people and their ability to be interpersonally appropriate and aware in individual and group situations. I agree with Patrick that this is an essential component in teamwork and being a leader. However, there is another dimension I want to address, namely the leader’s biases toward how they view subordinates and colleagues in general.

Let’s first address the leader’s common sense about people. Much has been written about emotional intelligence, but not enough has been done to apply it. Let’s face how most leaders have been selected in your organization and others. The people that are the hardest workers, with the most industry knowledge, highest technical acumen, people you may feel comfortable with and have been with the company the longest are usually given the most attention. Soft skill qualities are usually identified as important but, let’s face it, are usually considered secondary.

After all, how often have you seen people in companies that are horrible communicators, cause tons of drama, directly cause the most turnover, and survive year after year because they deliver results or are coveted for the reasons I described above. They are considered irreplaceable because of their customer relationships, contacts, institutional knowledge, etc. In the end, they are horrible with people and are severely holding your company back because you have decided that this one person is more valuable than the many they are infecting.

Worse, once you have tolerated one person treating other people badly, you are telling others that being a jackass is okay. You are indicating to all your employees that treating people with dignity, respect, and character does not affect results. You are indicating that we should not care about the feelings of others. Just focus on results because that is all we care about. If you deliver results, you are untouchable.

The Key Is Assertive Communication

You probably wondering where I was heading with the above. I am sure if I audited your company, I would find at least one leader that has poor emotional intelligence, and you are tolerating it. As an executive and business coach, I witness this issue daily in every organization. What I find frustrating is that leaders allow the dysfunction to continue. I have found that improving your decision making, leadership team chemistry, and organizational effectiveness

can be achieved simply by helping that leader understand how to use the right communication style. An assertive communication style rarely has the issues I described above.

“It’s the little details that are vital. Little things make big things happen.”John Wooden

The degree of assertiveness you use in dealing with people provokes fairly predictable reactions by others, which in turn help determine how effective you are as a leader. Assertive communication is characterized by honesty. It enforces rules, requires results, and is a direct approach that shows concern for yourself and others. It communicates the message that “you are both okay.”

This communication style could be construed as treating all the individuals involved as equal, each deserving of respect, and no more entitled than another to have things done their way. You feel connected to others when you are speaking to them, and you are trying to help them take control of their lives. You address issues and problems as they arise and create environments where others can grow and mature.

The reason assertive communication is so effective is that it combines the positive dimensions of both aggressive and passive communicators. The assertive communicator is goal-oriented and direct, and at the same time is a good listener, considerate, and thoughtful. Thus, the assertive leader bridges the most positive aspects of the two other styles of behavior while at the same time avoiding the negative aspects of those two styles. The assertive style is both a good human relations style and a good team-building style for any organization. The assertive leader is viewed as someone who is strong, energetic, and is both able and willing to fight for resources needed by the department. Further, the assertive leader does not appear to play favorites, since he or she does not bend rules or fail to enforce rules in an effort to be liked by others. This leadership style is most admired by team members and employees.

Leadership Biases

As I mentioned above, there are some biases that I believe leaders have that severely hamper their interactions with people. While there are many I could discuss, there are two biases that cause some significant lost opportunities in organizations.

God Complex

I have met too many leaders, particularly founders, who believe everyone in their company exists to serve them. While it is true they started the business, and at one point you could say they were the business, at some point the organization must grow up and operate as a business, not a bunch of serfs working for their master. Everyone in a successful business, including the founder, exists to provide products and services to customers.

Each person in the organization has a role in the process of providing products and services. As a team, we help each other to do a better job than our competition so that we can operate more profitably, and thus enable everyone to earn their fair compensation and the business to expand and create more jobs. The leader’s job is to make the subordinate’s job easier so that all are in a better position to serve our customers well. Not the other way around!

I have witnessed servant leaders on average get two to three times the productivity of those that have the god complex. Their employees give extra effort, work efficiently, and spend extra time looking after the customer. Ironically, they spend more time looking after their leaders than subordinates of leaders with a god complex. I believe the reason is that the latter secretly resent their boss and do the minimums to stay out of trouble.

Leaders with this complex cause everyone else to be inefficient. Employees spend their days readjusting their schedules from best serving customer to best serving the leader, resulting in severe organizational inefficiency. Such leaders misuse resources and do not even recognize it because they are so selfish.

Others Will Not Figure Things Out Without Me

In a world where most jobs require people to use their brains, and each situation is a little different, most roles are filled with knowledgeable workers. Ironically, many leaders do not treat them as such. In Multipliers: How the Best Leaders Make Everyone Smarter, Liz Wiseman identified the difference between leaders who access and revitalize the intelligence in the people around them (Multipliers) and those whose view of intelligence is based on elitism and scarcity (Diminishers). The Diminishers believe that intelligent people are a rare breed and that they are one of those few smart people. They then conclude that other people will never figure things out without them.

Here is the rub! We are all Multipliers and Diminishers. The questions are how often are we multipliers and with whom? Leaders that have huge ego problems are most often Diminishers. I know of one CEO that terrorizes the leadership team and other employees daily with emails micromanaging their every activity. This CEO’s team loses tremendous daily productivity in order to respond to those emails, provide reports to show what is being asked for, and attend update meetings so the boss can show them what to do.

Diminishers have other traits that cause them to get far less productivity than their people are capable of. The “tyrant” creates a tense environment that suppresses people’s thinking and capability. We have all been around that leader who loves to debate everything, hates to lose, and loves to win. It takes too much energy to get our own points across, so we just don’t even try.

Another Diminisher is the “know-it-all” that gives directives that showcase how much they know. Then there is the “decision-maker” who makes centralized, abrupt decisions that confuse the organization.

“You are not a failure until you start blaming others for your mistakes.”John Wooden

The Multiplier has a completely different way of handling people. Where Diminishers cause people to underperform, Multipliers can get the very best out of people and some believe exceed expectations. They are considered “liberators” as they create an intense environment that requires people to tap into their best thinking and work. They are considered “challengers” as they define an opportunity that causes people to stretch rather than the directive that limits the outcome. The Multiplier wants to make sound decisions, so they encourage vigorous debate on important decisions, usually staying quiet during the debate. After all, they know their own opinion. They really value the opinions of their team. They are “investors” as they invest in people to take ownership of results and are invested in their success!

Learning How to Say No!

In my book, Your Business is A Leaky Bucket, profit leak number 12 is dedicated to “being allergic to saying “no”. Rarely do I meet someone that tells me that they have mastered the use of time! If you are one of those people, you primarily work only those things that will contribute the biggest impact to your organization and role, and you are good at deferring, delegating, or discarding the rest. As a leader, you are communicating well, and you are emphasizing messages you really want your team to hear. Most importantly, you are clear on the right type of opportunities you expect your team to aggressively pursue and those you want them to defer, delegate, or discard. To a very large degree, your success depends on it.

Do You Use Your Time or Does Your Time Use You?

You cannot manage time itself, but you can manage how you choose to use your time. We are under more time pressure than ever, and those little gadgets like cell phones may make our lives much harder than easier.

Time is the great equalizer. Everyone gets the same amount of time: 24 hours in each day. You cannot buy more time, and no one can give you more of it. Thus, the most important question you can ask daily is: “How can I and my team use time more wisely?”

One of the essential keys to maximizing success as an individual or an organization is to effectively determine where your time should go now and into the future. Where you used time in the past only serves as a guide, a learning mechanism for your decisions as to where time should be used in the future. One person in your group losing focus on congruent goals can impact everyone’s time and even create a huge barrier to success.

Too often people search in the wrong places when trying to understand why they are not achieving their goals. They think there is something wrong with the time management program they’re using, so they buy a new one. The real problem is not what program or process they currently use. Rather, it is what habits of thoughts and attitudes they use to decide how they will use their time.

To do that, you must pick and choose which opportunities and tasks to undertake. Time and priority management is a skill few people master, but every person needs. One of the greatest mistakes many leaders make is to say “yes” too often. In many cases, time management is more about what you decide not to do, rather than what you do. Does your leadership team fail to say “no” often enough? Or does it choose to chase fires rather than identify and address the real issues staring them in the face? While there is no exact percentage, you should be passing on at least 25 percent of the opportunities and responsibilities that come your way. Otherwise, you will find yourself spending far too much time on tasks you never should have agreed to take on in the first place.

Belief systems lead to actions that cause results, which then impact your time management. If you or your people behave in counterproductive ways, try to identify what the belief systems are that cause that behavior. For example, let’s say you decide you should exercise three days a week to improve your health. Your primary belief system, however, is that exercise is boring and painful. What do you think the chances are you’ll implement that “decision” to exercise three days a week?

Commonly, I hear CEOs complain that they spend little or no time on their strategic priorities. Instead, they spend their days putting out fires and dealing with their employee issues. They are usually insistent this is just part of business as usual. However, a closer examination teaches us that some people like to put out fires. They enjoy the immediate gratification of handling the daily emergencies, want to be the ones with all the answers, and have trouble saying “no” to others. These habits directly impact their ability to manage their time effectively.

“Don’t measure yourself by what you have accomplished, but by what you should have accomplished with your ability.”John Wooden

Our society is notorious for seeking immediate gratification. The benefit of better health is a long-term goal. In the short term, however, a person is apt to avoid the pain of sore muscles and the loss of self-esteem that goes along with confirming one’s own bad physical shape by not going to the gym. In other words, they feel better about not going to the gym than they do about going. This is immediate gratification, even though the decision is a bad one for long-term goals.

To change behavior, you must identify the immediate gratification you get from your bad behavior and the thought patterns that cause you to continue to practice it. Once identified, you must find something more motivating to replace them. For example, many people would exercise if their doctor told them, “If you do not start to regularly exercise tomorrow, you’ll have only six months to live. If you do exercise regularly, you will live another twenty-five years.” That is quite a carrot to dangle.

An additional aspect of using time is that most people do not have a good sense of where their time goes. At least once every six months, executives should track their time to see where they really spend it. Once you have a solid understanding of how you spend your time, you can redirect time you control and use it more productively by delegating activities to others.

Are You Chasing Revenue Everywhere?

A key area where leaders have the hardest time saying “no” is when it comes to revenue.  This is critical. Not only is this a critical strategic conversation, it is also an issue that can destroy a significant amount of your organizational resources; both time and money. Not all revenue is good revenue. In addition, the more market segments target, geographies you try to conquer, product and services you offer, and distribution channels required, the more resources required. It is important to be prudent in how you go about building your revenue. It is very important to know when and how to say “no”!

Your strategy will help you consider the best type of revenue to target. The predictability and consistency of your revenue growth rate are important measures of the health of your business. A key to driving your growth is targeting the right market segment, not aiming to be all things to all segments. You might love pie, but you’d likely not be feeling too well if you ate the entire pie at one sitting. The same is true regarding the health of your business. You must pick the right slice and exercise moderation. Targeting every source of revenue can leave you spread thin, the proverbial jack-of-all-trades and master of none. Profit leaks result from not focusing your efforts on the most valuable and sensible avenues for revenue.

What does this have to do with saying “no?” Positioning your company in a growth industry, market segment, or sector is crucial to the continued success of your company. To have future growth, regardless of how you are doing in this quarter or year, there must be a target market that your products/services are focused on and that is regularly growing. When businesses mistakenly chase revenue anywhere it leads them, they wind up with less of it. Great companies quickly learn that by segmenting the marketplace, they can perfect their business model around owning their segment or slice of the pie.

Without Saying “No”, Everything Is Equally Important

You set your employees up for failure by saying yes to everything. When everything is important, nothing is truly important! Perfection does not exist. Simple math dictates that the more things you randomly throw on someone’s plate, the less time they have to spend on each thing. Overloads cause leaks in company buckets.

A domino effect occurs when leaders cannot say “no” to anything. Let’s take the people ramifications. The more complicated your service model, the more talented your service staff has to be. They have to be smarter than the average employee in the marketplace while also maintaining specialized skills to handle your customers. That said, when you overload them with responsibilities, you’ll find they cannot reach all your original projected goals.

“Being average means, you are as close to the bottom as you are to the top.”John Wooden

The number one job of a leader is to make their employees’ jobs easier! I recently had breakfast with a CEO I am coaching, and he had mentioned that the COO seemed overloaded. He had wondered if he had hired the wrong person. As we talked, it became clear that they had never established clear priorities together. In other words, everything was important! When I started asking him questions about what he believed the top priorities where for this person in the current quarter, he paused. It was obvious that he was unsure. A great example of setting a good clear priority was an advertising agency that had too much complexity in its client intake process. It took two weeks and six different people to onboard a new client! After proper focus and attention, that was reduced to one hour and one person. That could not have happened had they not focused on a clear priority and de-emphasized other things to get that done.

You Can Reduce Complexity by Saying “No.”

A great example of a company that benefited from saying “no” is Southwest Airlines. They say “no” often. If you want reserved seating, you do not fly Southwest, because their boarding process does not allow for it. Southwest Airlines, unlike most of the competition, does not charge for bags. All of their planes are 737s. This simplifies their fleet, reduces the time it takes to train mechanics, and drastically improves inventory management. In addition, they do not provide onboard amenities. Also, you will notice they fly to just 101 destinations. They choose airports with lower gate fees. Additionally, you can only book flights on their website. The culmination of these “no” decisions is that they have remained one of the most profitable airlines in the industry. As of this writing, they are second only to Delta Airlines in market capitalization with approximately half the number of employees.

Saying “No” Will Simplify Your Life

Typically, leaders push back on the concept of saying “no”. To that end, make it a priority NOT to schedule any meetings or calls in the first three hours of each day. Use that time to work on one key task to move the rocks (your main priorities) out of your way. If you finish in less time, use the leftover time to go after the gravel, sand, and water tasks in that order, the lesser priorities that also fill your daily bucket. This ensures you are working on at least five key motivators each week. You have been trained since you entered the workforce to please your customers and your bosses. They make you feel as if you always have to go the extra mile and exceed expectations! The problem with this mentality is that by trying to please everyone, you end up pleasing no one. You set yourself and others up for failure. You might think it takes courage to say “no”. In reality, it takes brains to say “no”. And the better practice is to prioritize your time commitments and always put thoughtful productivity at the forefront of your mind.

In Conclusion

Strong leadership is essential to maximizing the success of your organization. Failing to address a poor leader in your organization is the equivalence of leaking money out of your bucket. I encourage you to coach each leader in your organization to check their egos at the door. We all falter. When you notice colleagues faltering, reach out in a positive manner to help them see it so that you can all grow as leaders. Don’t assume that just because someone has poor people skills that it must stay that way. Recognize that they have never been taught or required to be any different. Take responsibility to help them see a new way of interacting with the team. Work hard as a leadership team to say “no” more often. Help everyone see what is most important and get better at letting the rest wait. In the end you will find an organization that will grow more profitability with a lot less drama.

Howard Shore is a business growth expert who works with companies that want to maximize their growth potential by improving strategy, enhancing their knowledge, and improving motivation. To learn more about him or his firm, please visit his website at www.activategroupinc.com or contact Howard Shore at (305) 722-7216.

7 Keys to Working Smarter and Being Highly Successful

After observing thousands of leaders in companies from startups to over $20B in revenue and helping create over $1 Billion in business value, I noticed one superpower in highly successful people. They worked smarter, not harder, and derive much higher results in less time than almost everyone else. These very successful leaders tended to value highly the Management Strategies and Learnings obtained through Business and Executive coaching channels.

For clarity, I deem someone to be successful if they can accomplish three times more than their peers,  have more joy and happiness, and do all of this in less time.  Now, I have to draw a line as many of us are highly ambitious, driven, and are classic workaholics. Most workaholics do not commit to reducing the hours they work and find work exhilarating. Regardless of your view, it would help if you wanted to achieve three times the results and earnings in less time. What you do with the extra time is your business.  But everyone should want to work smarter and not harder.

I am often exposed to CEOs in the same industry and have always been amazed at how varied leader’s approaches are.  To me, the right approach is the one that produces three times the results with a similar effort.  Let’s take the restoration industry.  I have met many CEOs who started their business 20 years before and are stuck at $5M in revenue or less. Also, I have met others that were in the industry for just a few years and had revenue over $5M.   I do not only find revenue disparity. I also find profit and time gaps.  While the average company earns a net profit of 5% of revenue, we have helped companies generate over 20%.  Would you rather be a $10M company that produces $500K of net profit or a $5 Million company that produces $1M in net profit?  That was a trick because you should want to be the $10 Million company generating $2 Million profit, expecting the growth and the profits.

The most successful CEOs build far larger companies, have higher growth rates, have more free time, and have 3x the net profit margin. And, yes, there are other measures of success. I want you to consider that working more hours than everyone else, regardless of what you earn, is a fool’s choice! All I want to do is challenge us to work smarter continually.

Which leads us to the big question: “How can we make it easier to achieve our success goals faster?”  How can a person make far more, achieve their intended impact, and work a lot less? Not only is this possible, but others are already doing it. After watching these leaders, I noticed they were not necessarily smarter, more creative, lack ethics, or privileged.  I have met many highly successful people, some ultra-wealthy, and found that they were formerly homeless, living in trailer parks, had no college degrees, and so on. I am sure all of us are capable of high levels of success.

Achieving success is simpler than you think but not easy. If it were easy, everyone would do it.  The strange part is that we are familiar with the concepts but not living them. Here are the principles you must follow to work smarter and not harder:

(1) Manage Your Thoughts

(2) Have a  Strategy

(3) Be Strategic

(4) Work a Plan

(5) Be Disciplined

(6) Resilience Rituals

(7) Build Wealth

Manage Your Thoughts

There are three dimensions to managing our thoughts: awareness, intention, and perseverance. Our mind is a potent tool. How you think will change your outcomes for better or worse. Thus you need to be aware of what you are thinking. For example, if you make up your mind that someone cannot do their job, your words and actions will differ from those based on the premise they are capable of. Your thoughts need to be congruent with your intentions. If you intend on accomplishing something and focus your thoughts on contrary purposes, you will fail. Imagine you plan to have a good day but your spend most of your day angry about something. 

Once our thoughts and intentions are in unity, we need to have perseverance. When was the last time you set out for something new and challenging, and it worked out exactly as planned? Most often, we find we run into unforeseen difficulties and roadblocks.  If you allow your mind to waiver from the finish line, you may not get there in a practical manner.

Have a Strategy

Too often, I find driven people are in constant motion. They confuse activity with productivity. When they see a problem to solve, they are off to the races.  Often leaders are solving the wrong problems or not taking the best route to solve their problems.  By doing so, you may feel better in the short term, but it could have long-term negative consequences.

I recently witnessed a senior leader get angry with a subordinate because he felt they were taking advantage of the company.  He immediately launched into attack mode and let the employee know how he felt.  While the concern was merited and the employee course-corrected, there were longer-term consequences.  You see, the leader was so busy being right that he lost one of the highest-performing people in the industry. That employee decided to quit his boss.

In the end, the leader was not strategic.  Had he been, he would have waited until he wasn’t angry and would have developed a strategy to course-correct the employee in a manner that was okay for both parties involved. Instead, he may need two people to do the work the one accomplished, and his reputation may cause other competent people not to want to work for him.

While I used a personal situation, the same goes for taking on projects, lofty goals, and conquering the competition. One thing we have all learned is that there are many ways to accomplish an objective. Being strategic requires you to consider achieving the ideal outcomes, choosing what “not” to do, using the least amount of resources, and within the desired time frame. It is usually best to consider expanding your options before choosing a path.

Work A Plan

We are working on a plan ties to being strategic.  However, the critical difference is that the strategy is the vision of where you want to go, and the action plan charts your course from beginning to end—many of us are big picture people. We can see what is possible and have a “can-do” attitude.  The problem with visionaries is they believe everything is simple and underestimate what it takes to achieve the outcome.  Taking the ball down the field is usually someone else’s problem.  To achieve grand visions, I recommend the following project management techniques:

(1) Be specific – The objective has to be clearly stated so that anyone could step in and know what needs to be done.

(2) Make it Measurable – Identify the measurable milestones and deadlines that indicate you are on track.

(3) Action Steps – Identify the action steps necessary to achieve each milestone.

(4) Monitor Progress – There must be processes and systems in place to monitor progress.

(5) Course Correct – When progress is insufficient, it is essential to revisit your plan to get back on track.

Be Disciplined

Whether you are working on getting healthy, achieving your sales goals, accomplishing a major project, it takes disciplined action.  Too often, we like the idea of the outcome but are not disciplined enough to achieve it. Think about dieting. If I eat healthily and eat the right amount of calories for three days a week but overeat unhealthy foods the other 4, it will take a lot longer (if ever) to lose the weight. Where if you ate properly every day, that takes discipline.

My brother Matt is the President of Steven Douglas, one of the fastest-growing recruiting and staffing agencies in the US.  Matt has been a top producer every year since he entered the industry almost 20 years ago.  Most people in his industry only dream of producing his revenue production.  Matt shared with me that he has hundreds of employees, and none of them produce as much as he does. Given that he is President, he spends far less time than full-time salespeople. This caused me to ask his secret. Matt has a list of 300 key contacts he calls every sixty days.  He does this by setting aside one hour daily for outbound calls.  This single disciplined activity has helped him achieve more in 5 hours a week than others can produce in 60 hours.  Successful people are willing to commit to such discipline. I have shared this technique with at least 100 people over the years, and none has had the discipline to implement it.

Resilience Rituals

The airlines taught us a very important less when they told us that we must put our oxygen masks on first before helping others. I have found that highly successful people have a regimen of activities that they use to recharge themselves.  Here are my resilience rituals:

 – 1/2 hour of daily exercise

 – 15 Minute breaks between meetings

 – 15-30 of Meditation

 – 15 Minutes of Quiet reflection

 – Spending time with friends and family

 – Take 4-6 weeks off on vacation throughout the year.

 – Monitor and control my work hours

 – Weekly Massage

It would be best to have the same level of committed discipline to your resilience rituals as your business routines.  For example, if you work out 4 hours in one day, it will not have the same effect as 1/2 hour per day.

Build Wealth

Too many of us are so busy working that we don’t spend the right amount determining how to build wealth. Every very wealthy person I met has at least three streams of significant income.  It is essential that you identify, develop, and give enough attention to your various income streams.  Most people will tell you that the most significant part of wealth came from income streams outside of their day job.  The day gave them the financial start in investing in other activities. Still, many of those activities require learning about and developing strategies and plans to develop each stream. 

In Conclusion

While you can be highly successful without practicing the above activities, it does not invalidate them.  However, by managing your thoughts, being strategic, working a plan, being disciplined, practicing resilience rituals, and building wealth consistently, you will find your path to success with less friction.  Now I challenge you to determine how to use these principles to work smarter and not harder, so you have more time to do the things that are most important to you.

 


Howard Shore is a business growth expert who works with companies that want to maximize their growth potential by improving strategy, enhancing their knowledge, and improving motivation. To learn more about him or his firm, please visit his website at Activate Group Inc or contact Howard Shore at (305) 722-7216.

Avoid Horrible Meetings

A client asked me to observe his weekly leadership team meeting and it was one of the worst meetings I had attended in a long time. Every leader in the room should have been upset because they essentially wasted 90 minutes. More concerning was the fact that leadership rated it a great meeting.

Might you and your leaders unconsciously fall into the same traps as my client? After all, the agenda and process for the meeting is common practice and is prescribed by EOS (Entrepreneurial Operating System) Implementers all around the world. The problem was not the process or EOS, it was the way it was being implemented. Let’s dissect what happened and then discuss what should happen in every weekly meeting.

Form Over Substance

The overriding problem was form over substance. The team followed a proven process and yielded the wrong outcomes. The meeting involved a standard agenda, covered the topics, engaged everyone, started on time, and finished on time. From a theoretical standpoint it appeared to be a well-run meeting. And my client rated it so!

Here are the primary reasons I would rate the meeting horrible:
1. Clarity of Purpose
2. Undervaluing time
3. Little (if any) conflict
4. Lack of accountability
5. Failed to address serious problems

Clarity of Purpose

Are your meetings more focused on purpose or process? Purpose focuses on intended outcomes and process focuses agendas, start and end time, checking the boxes, and having the meeting in the first place. The problem with process is that you can follow it flawlessly and not accomplish your purpose. The challenge with standard operating procedures is the presumption that conditions don’t change. When it comes to leadership meetings, we are always operating in turbulent conditions, so we need to have flexible standard operating procedures that adjust the process to accomplish our purpose.

The purpose of the weekly leadership meeting is to:
• Share key information across the team
• Break silos
• Keep focus on the top priorities
• Hold people accountable when they are off track
• Solve big issue(s) together

Agendas are typically designed to identify the key information that needs to be shared. Personal update, business update, customer feedback, employee feedback, priority status, to-do status, metrics update, and key company and department challenges. After providing this information the team identifies topics, prioritize, and discuss key topics, and agree on solutions. This is precisely what my client did. So, you are probably thinking, this sounds like they should have had a great meeting. What’s the problem?

Information was shared and after 45 minutes none of the key issues in the company were raised. Yes, they identified issues, but it was all small issues. This company had major issues and none of them were brought to the table. When issues were addressed, half the room would check out when it was not their issue. Leaders had opinions and observations that should be raised, and they did not. Worse, most of the issues discussed was a quick conversation between two people that should have happened and could have been resolved before the meeting. These people are all in the same building, are steps away from each other and clearly have not been talking.

Had this meeting addressed its purpose, the leadership team would have spent a lot of time discussing their number 1 issue, people. Certain vacant positions were causing the company to miss opportunities. Keeping the wrong people was costing them money. And, there was no confidence in how this would be resolved. Every leader has a hand in this obstacle and failure to address was costing this company over $1 Million in profit. This discussion should happen every week until results prove that the plan is in place that is showing the progress necessary to capture the $1 Million.

Key Observation: Focus on making major improvement to your business every week. Leadership meetings should limit the small stuff.

Undervaluing Time

If your week is like most leaders, time is always an issue. Time is finite and if we don’t use it wisely the company and performance suffers. When we have meetings, we are investing time just like we would money. When you allow for a bad meeting, one that fails to speed up taking advantage of big opportunities and eliminating your bottlenecks, it is costing you dearly. In the case of the people issue (identified above), it is costing the company $20K in profit each week.

Have you ever wondered why time is being squandered? I have given this significant thought and find two reasons to be the main culprit. First, we tend to avoid the elephants in the room. The elephants are the big problems. To resolve them is difficult, it can take considerable thought, requires conflict, and takes significant steps and time to address. As a result, we go after the small stuff. Second, it feels good to check items off the task list. As problem solvers by nature, we feel good when we solve a volume of problems. However, most of the problems would go away or be different if you addressed the elephants.

In the client example, it was considered important to finish and end on time. Because this occurred, the meeting was rated well. Based on the content and discussion, this meeting should have been completed in 60, not 90 minutes. Most weekly meetings, when focused, can be completed in 30 minutes. In my client’s case, the extra time was caused by taking 45 minutes for ideation and updates. Not only did they spend time focusing on minor issues, but they also spent too much doing it. I plan 60-minute meetings with a 30-minute buffer. While I expect to get done in 60 minutes, there are times when the issue is big and important. It is crucial that you finished discussing and prescribing a solution before leaving the meeting. Failure to do so adds a week delay in addressing important issues. In addition, it causes more time to solve the same problem because you lose momentum in the discussion.

Key Observation – Get better at increasing the value from holding meetings and have the discipline to get done in shorter periods of time. Reward the team with unscheduled time when this happens, and they will go back and get more ROI from their time. A key measure of a successful meeting is identifying and measuring the value of the decisions and actions from the meeting.

Break Silos and Encourage Conflict

I have participated in thousands of meetings. The difference between great and ordinary leadership team meetings is how leaders engage in meetings. In great meetings, everyone in the room is playing to win and there are no sacred cows. Everyone demands excellence, want to contribute value, and cannot stand for bulls#@t. If you get through a meeting and there is little conflict, your meeting suffered one of the following:

1. You are discussing insignificant items.
2. There is a lack of trust

Healthy conflict needs to be mandatory. If you are discussing a difficult issue, there should be varying opinions as to the definition of the issue, multiple ways to solve the problem, and rarely consensus on actions to take. It takes vigorous debate, challenging each other’s assumptions, questions about sources of information, and so on. While I am certain there are moments where this happens in your meetings, how often? What percentage of your meeting involves conflict?

In my experience, a lack of conflict occurs because of the highest-ranking person in the room. For conflict to happen, this person must be more curious, and listening rather than talking too much. After all, they already know their opinion. The job is to access everyone else’s brains. It is important to understand everyone’s perspective on a subject. Even when it is not in their area of expertise. Some of the best ideas and perspectives come from those people that seem the least qualified to contribute. In every meeting everyone should expect to share and contribute ideas. They should truly be part of the decisions. Our job in meetings is to co-create.

We also need to be vigilant about three types of circumstances:

1. Politics
2. Low Contributors
3. Negative Influencers

You can identify politics when people are not speaking their mind. Their body language, tone and past discussions on a subject indicate whether they are speaking up. When people are saying what others want to hear or staying quiet because they are avoiding going against the grain, this is politics.

Key Observation: By making people speak up you help them grow as leaders. You get more and better ideas and break siloed thinking. We want to not only hear everyone, but we also want to understand why they have come to their conclusions.

Lack of Accountability

We must hold the team accountable for achieving company and department priorities and goals. While this is obvious, it is not happening in most organizations and execution suffers. While my client presented the status of priorities and goals, it was a farce, and no one spoke up but me.

First, when leaders presented their metrics, almost everyone one of them was red. Red should be an indicator of poor performance. In an accountable organization when this goes on for too long someone should be fired. When I saw how many metrics were red, I asked “how long they had been red.” The team answered “forever.” Essentially their targets were not real expectations and did not represent reasonable expectations. Targets for the week, month, and quarter for every metrics must represent present conditions. Failure to adjust them accordingly leads to an environment where it becomes impossible to be accountable.

Secondly, this team recently set new priorities and had concluded that the old priorities were too shallow and would not drive needed results. Instead of updating their scorecards they reported on old priorities. Worse, since there were no clear milestones and due date for action steps it was impossible to know whether leaders were on track to complete their priorities. Thus, the priority status update was bogus.

Key Observation: When metrics and priorities are not properly developed it is impossible to hold someone accountable until it is too late.

In conclusion, by having meetings that achieve their purpose, you will be able to grow your organization faster and with less effort. You must properly use time when you hold weekly leadership team meetings. Time is best used solving “big” rather than small issues. Your company would be better off solving one big issue rather than lots of small ones. The big issues relate to quarterly priorities and show up when metrics are below meeting a reasonably high standard. You know that you have hit gold, when you are having constructive conflict and rigorous debate. 

If you need further help, then head over to our business coaching page for more information.

Trying to Sell an Apple to Someone Looking for Chocolate?

Recently, I facilitated a meeting for one of the most innovative companies I work with. The leadership team is one of the smartest I have ever worked with, and there is a clear vision about solving gaps in their market. Moreover, they arguably have the best SAAS platform to serve their target segment. Yet, they have struggled to grow.

Have you ever wondered why some companies seem to grow with ease while others don’t? I have pondered this question because I have seen far too many organizations struggle to grow. For the SAAS Company, the secret showed up in a strategy session I recently facilitated. The conversation centered around one key question, “Why is this SAAS company finding it so difficult to acquire new customers? The answer was not what you would expect.

Are You Answering the Right Question?

Often, leaders are trying to solve their growth issues by centering on the wrong questions and problems. Typically if you asked the question, “How do we increase sales faster,” you would hear answers like:
• We need more revenue.
• We need more leads.
• We need higher quality leads?
• We need better salespeople.
• Our sales manager is not doing her job.
• We need better marketing.
• We need more marketing.
• We need more salespeople.
• Our customers don’t understand why we are different.
• We have failed to articulate our value proposition well.
• Our salespeople need a better process.
• Our salespeople need better training.

Have You Identified the True Problem?

While the above may be components of solving your growth issues, it is likely not your problem. I often see companies spend significant money and time addressing all the above. After years of frustration, they find themselves right back where they started from. They find other companies in their industry growing far faster, and some started much later and far larger. Your company has likely developed great products and services, cares about your employees and customers, works very hard, and has many loyal customers. In addition, your company might have implemented best-practice execution processes like EOS and Scaling Up, and yet the growth outcomes are not getting much better. What gives?

The right approach is to change your question. In my client example, we changed the question from “how do we increase revenue” to “why is it so difficult to acquire new clients ?” I asked the leadership to answer the question with a question. We brainstormed for 10 minutes until we complied with enough inquiries related to the initial question. Here are some of the questions they came up with?
• How do we remove sales friction?
• What would we need to do to increase market share dramatically?
• Why can’t we sell product “A” to our target market?
• Why is there so much friction in acquiring new customers?
• Would it be easier to sell a product that is on par with our competition?
• What do we need to shift in sales and marketing?
• Who is our real target customer?
• What is the evolutionary path for customers?

After developing 25 questions, I asked the team to narrow down the list to one critical question that would address almost all of the questions. The answer was, “why can’t we sell product “A” to the masses?”

By using the new question as a focal point, we were able to discover their real problem. The market was desiring a product they were not offering. Worse, they had the perfect product, and it was bundled into their more sophisticated product. In the long run, their product was more complete and would better serve their target market. The problem, most companies were not ready to consider their full suite, and they were trying to force it on them.

While there is a lot more to this story, I was hoping you could recognize that these extremely smart leaders were essentially trying to sell an apple to people looking to buy chocolate. When the prospect did not see the chocolate, they moved on to the competitors. We realized that we had to metaphorically get the customer into the supermarket and sell them chocolate before they were willing to consider the apple. Chocolate was their primary need. Once they loved our chocolate, we could take them down more isles and sell them more of what they needed.

Stop Trying to Convert the Heathens?

Are you guilty of ignoring the market? This is a common mistake. My client was a great example. They had the perfect product but were so enamored with their complete solution causing them to ignore the market expectations. While they are correct, their product can and will solve bigger, more complex problems, there were too few leaders that were aware and ready to solve them. They were getting ahead of themselves. And, like a good priest or rabbi, they were delivering sermons to inspire and convert the heathens. The problem was that the disciples were not listening. When this occurs, the sermon is white noise. Their best approach was to get the easy win, earn the customer’s trust, and use that as a platform to cross-sell later.

Conclusion – Ask Yourself… and Take Action!

If you are like many leaders, you know that your company can and should be growing much faster. Have you found the right question to answer? Do you know the primary problem? Are you spending enough time facing the brutal facts?


Howard Shore is a business growth expert who works with companies that want to maximize their growth potential by improving strategy, enhancing their knowledge, and improving motivation. To learn more about Howard Shore or the firm, please contact Activate Group or call (305) 722-7216.

Three Keys to Maximum Business Performance

3 Keys to Maximum Business Performance

While people have been impacted by globalization, technology, and other circumstances, achieving business success has not changed. Over time, you will need to discuss changing conditions and have a robust operating system maneuvering these issues. But I have concluded that while most entrepreneurs pride themselves on their speed in getting things done, I see them running in circles. More creative entrepreneurs may make lots of rapid right turns instead of circles. Still, they find themselves in the same place and with the same problems as the people running in circles, never achieving acceleration.

 

The Difference Between Speed, Velocity, and Acceleration!

Acceleration in performance should be the goal of all leaders. Most people use the words speed, velocity, and acceleration interchangeably. However, these are three different outcomes. Speed defines how much distance has been covered in a particular timeframe. Velocity is the rate of change of distance in a particular direction concerning time. And acceleration is the rate of increase in velocity. Great companies achieve far greater velocity than “good” companies.

 

Every Business Has the Same Fifteen Leaks

As I wrote in my first best-selling book, Your Business is A Leaky Bucket, there are fifteen ways every business is leaking growth and profits. The bigger the business, the bigger the leaks. No business is immune. The odd part is that you likely already know you have the leaks. And, all fifteen leaks had a centering cause…leadership. They result from poor leadership. These leaks individually and collectively slow velocity, and large leaks can cause demise in your business. My book helps you identify and quantify the leaks. More importantly, I prescribed how to address each leak. Average companies achieve speed, good companies achieve velocity, and great companies achieve acceleration. The latter spend specific leadership time narrowing the fifteen leaks.

Leaders I work with are stunned when they realize how easily they can improve a business. But are often surprised by the dollar value in the improvements. However, easy does not equal simple. It takes discipline to work on the business rather than in it. It takes perseverance to stick to your plans and focus on a limited number of objectives while saying “no” to others. It takes rigor to drive excellence.

 


The Three Primary Reason Business Leaks Occur

There are three primary reasons why those leaks continue to recur throughout the life of your business:

1. Mediocrity—You know your organization and people are capable of more, but you allow average to become the standard for your business. Sometimes, this happens because you attempted but failed to raise the bar in the past. There is also a tendency to compare your business to industry norms and become comfortable if it’s doing better than the industry average—even if that industry average is a massive bottleneck in your business. Accepting the lower standard may be common in your industry, so you accept it, too. For example, high turnover has become the accepted norm in certain positions in some industries. But excessive turnover is a significant drag on a company’s ability to grow and scale. Ask yourself, how often have you taken too long to replace someone you know is not capable of doing his or her job? These are examples of accepting mediocrity!

2. Mastery—It takes discipline and perseverance to continually improve and address the issues that cause slower growth, lower profitability, and cause leaders to be tied to their work. Let’s be honest; when you started your career, were you thinking, “I am going to be a master craftsman at culture, team cohesiveness, strategy, people, execution, and cash systems?” Each of those areas requires skills and knowledge, continuous learning, and continuously increasing your level of mastery. However, as your business grows, so do the challenges in these areas. The typical leader would prefer to focus on industry knowledge, serving customers, and making better products and services rather than think about, discuss, and address those other, less tangible issues. In reality, culture, team cohesiveness, strategy, people, execution, and cash are the business operating systems that you use to run your business.

3. Invisibility—Financial statements do not capture the substantial costs of the weaknesses in your business operating system. Generally accepted accounting principles are only designed to capture actual transactions, assets, and liabilities. There is not a place in accounting principles to capture the cost of mediocrity and lack of mastery. Like most leaders, you do not go out of your way to quantify these costs. Here are some examples of mediocrity that should be monitored and will not be found in your financial statements:

– The cost of keeping underperformers

– The cost of lost sales because of mistakes in the sales process

– The cost of customers who left because of their disappointment with your quality and bad processes

– The cost of a bad strategy leading to higher customer turnover or slower customer growth

 

There are no financial statement line items for these costs, yet they exist in every business. Such losses are much more significant than you want to face, so you don’t! You are complacent with being good enough, especially if you are growing rapidly and profitably.

To succeed in business, leaders must have a business operating system and toolkit that help them work on the business in a way that allows their team members to make clear decisions and act regardless of the noise. Success is the result of your commitment to that system and how well you use the tools that support it. For the past 100 years and into the next 100, you will find that business challenges are the consequence of how effectively leaders handle these six operating systems:

(1) Culture
(2) Team Cohesiveness
(3) People
(4) Strategy
(5) Execution
(6) Cash

 


Howard Shore is a business growth expert who works with companies that want to maximize their growth potential by improving strategy, enhancing their knowledge, and improving motivation. To learn more about Howard Shore or the firm, please visit our business coaching page or call (305) 722-7216.

How to Remove OVERWHELMED from your Business Vocabulary

HOW TO REMOVE OVERWHELMED FROM YOUR BUSINESS VOCABULARY

The CEO of one of my Business Coaching clients, let’s call him Joe, was very highly strung when I first met him. He was saddled with both working on the business and working in the business. He felt that his management team was inadequate for the job and had to step in and do the job for them constantly. As a result, he was always tired, impatient, and short-fused. His team members frequently walked on eggshells to avoid the fallout of Joe unloading from feeling overwhelmed and over-worked.

That was a year ago. I recently picked up a new executive coaching client, Mike, who was a referral from Joe. After going through some pleasantries in our first call, I asked him why he wanted to work with me. He told me that he has known Joe for years and has noticed a remarkable change in Joe’s behavior. He now found Joe much more relaxed, Mike continued, and it was fun to hang out again. Additionally, he noticed that Joe now appeared to be more focused and took the time to work on his business expansion, as well as made the time take a long overdue vacation with his family. Mike wanted that for himself, as well! He felt that he was facing burnout and needed to reverse that trend.

Many business owners and CEOs find that they, too, can feel overwhelmed and over-worked. Sometimes, they behave like Joe, and other times they just check out and disappear, trying to hide from the demands and the fatigue. These are all symptoms of burnout, just from different ends of the spectrum. It is always a big red flag when the CEO is the busiest person in the Company.

There is no magic formula for the CEO to change this dynamic. It’s about adopting new habits, both for themselves and their management team, to give them the freedom to spend more time working on the business. Here are the things you can implement to help not feel overwhelmed and burned out:

-1-  Create a Culture of Learning – The entire team was assigned a reading list and we did follow-on discussions and exercises. I curate the reading list to focus on gaps in the desired behaviors the team needed.

-2-  Create a Culture of Accountability – If you’ve read my previous blog, you learned that the lack of accountability typically stems from the lack of clarity. After all, it is hard to commit to something if you don’t fully understand it; and, if you’re not committed, you can’t subscribe to the need to see it through.

-3-  Prioritization – Implement a planning process (Strategic and Operational) that identifies the key priorities and aligns the management team’s members. Use a balanced set of metrics to provide both headlights and taillights so that everyone knows how they are performing.

-4-  Talent Scorecard – Implement a talent scorecard to determine if you have the right people filling the right seats. The scorecard is used to evaluate everyone in the Company, including the CEO.

-5-  Communications – Create a strong communication culture by implementing proper meeting rhythms and employs active listening.

-6-  Transparency – Fostered organizational alignment and improved operational velocity and effectiveness through clarity and accountability. Everyone in the Company knows what is going on and how you are doing. Everyone must understand the Company’s purpose and values, its priorities (for the quarter, year and beyond), and how success is measured.

By applying these six key principles, Joe’s Company is growing at a healthy clip and year-over-year profitability has improved by 20%. Also, employee turnover has dropped, and most employees think it’s a great place to work. Joe has developed and made his bench of managers stronger and more capable; and the trust in the leadership team is at an all-time high. He now has the freedom to focus on other higher-value initiatives and activities. Most of all, Joe no longer feels overwhelmed. He is working on growing the business and finds the time to spend with his family and hone his golf game. Joe is a happy man, and his team sees that too. He is still busy, but he is now only pursuing strategic business objectives and lives a balanced personal life.

Want to Learn More about Removing that Feeling of Being OVERWHELMED?

Mo Rousso is a business growth expert who works with companies that want to maximize their growth potential by improving strategy, enhancing their knowledge, and improving execution. To learn more about him or the firm, please visit our website at www.activategroupinc.com/contact or contact Howard Shore at (305) 722-7216.

Keys to Business Partnerships & Max Performance

When business is good, revenues are growing, and profits are sufficient, everyone seems to get along excellently. However, these outcomes may not be the result of a good team, and you may not be achieving peak performance. As the economy seems destined for recession in 2008, how strong your team really is will become more apparent. This is because the true strength and character of a team are most clear when business conditions become difficult. This article identifies the two key factors in achieving peak performance in any type of organization.

For simplicity throughout the rest of this article, when I refer to partnerships I am referring to any ownership group, partnership, or executive team. As an Executive Coach I work with partnerships to either counteract challenging times or take their businesses to the next level.

A business’s success is rooted in the culture created by its owners. This culture is founded upon the core values established, promoted, and demonstrated by its owners. I have found that if a partnership is missing two core values, the organization underperforms its potential, which may lead to outright business failure and/or separation of the partners. These two core values are trust and respect.

Trust

I am amazed how many people are in business with people they do not trust 100%. Worse, people are promoted into partnership after demonstrating to their employers over many years that they are not to be totally trusted. This is justified by a person’s skills, who they know, how much business they have brought in, and so on.

I recommend that an unconditional core value of partnership must be Trust. If you are going to enter into a partnership, ask the following questions:

  • Would you be willing to give your personal checkbook to your partner?
  • Do you believe this person will do their best to act in the firm’s best interests over their own when no one else is looking?
  • Do you believe this person will have your back in public when you make a mistake?
  • Do you believe that this person will live all of your firm’s core values?
  • When something goes wrong in your organization, do you know that your partner(s) will tell you the unvarnished truth?
  • Do you believe that this person would answer yes to all of the above questions when asking that question about you?

If the answer is not yes to all the above questions, you have a partnership that is on a weak foundation, and when the going get’s tough you may have trouble keeping things together. A partnership without unconditional trust has excess conflict, extra bureaucracy, and typically requires more paperwork. Mistrust amongst leadership is like cancer as it spreads throughout the rest of your organization.

Respect

While trust is an issue in many partnerships, I find that respect is the most violated. As an element of business planning, I help organizations identify and define their core values. I am relieved to report that many of the companies I have worked with have chosen “respect” as a core value. Interestingly, the leaders of these organizations have trouble articulating the definition of respect. This is usually caused by the fact that there is a gap between the ultimate definition and what is currently going on in the organization.

The reality is that respect is a difficult value to implement. I think there are really two primary reasons:

  • Hierarchical Society – People tend to treat others based on where they think others are in the hierarchy in relation to themselves. For example, a boss may talk down to subordinate staff about a particular subject. When having a conversation with someone at their own level on the same subject, their tone and body language may be more neutral. In other words, they inadvertently are treating their subordinates with less respect even though those subordinates may know more about the subject.
  • Competitive Society – People are always trying to identify ways in which they are better than others. For example, in an accounting or law firm it is not unusual to see value conflict discussion between the people who bring in the business and those who deliver more of the work to clients. While this might be an important discussion to determine how profits are generated, it often leads to a determination of respect. In other words, the person who is the rainmaker uses sales as their lens for respect. So they give the most respect to those who can bring in business and, intentionally or not, disrespect those who do not. Their words and actions start hurting the partnership and eventually the firm.

Here is a test to see how well you are at acting with respect:

  • Which do you think about more often, your partner’s strong points or weak points?
  • How often do you make complimentary statements about all of your partners to co-workers and subordinates when those partners are not around?
  • Do you use the same tone and body language to a secretary as you do to an owner?
  • When you measure the performance of your partners, is it against yourself or predetermined goals that you mutually developed?
  • Do you truly respect each and every one of your partners?

Conclusion

The real challenge is that these are values that must be managed like your income statements and balance sheets; daily. Most of us have hundreds of interactions daily which provide many opportunities to earn or lose trust and respect.

An executive and business coach can help! Review our website to understand how an executive coach or business coach can help you increase the success of your career and business or contact Howard Shore at [phone link=”true”] or shoreh@activategroupinc.com.