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.

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 contact Activate Group 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.

10 Signs Your Employees Are Mediocre

It’s pretty rare to find a product or service that is truly unique. In my opinion, the only two ways to truly differentiate your business from the competition are through people and company culture. So let’s talk about people. Every leader with whom I’ve consulted says they only want to hire top talent. They say they have pride in their people and mediocrity is not an option. So why do they end up with a bunch of “C” players on their team? They don’t have a solid strategy for the management of human capital, and they ignore the following signs of mediocrity:

  1. People picking up the slack of others who don’t do their job.
  2. Positions are created to fit existing employees instead of hiring the right person for a position created to fit the company strategy.
  3. Managers tolerating the same mistake by an individual over and over again.
  4. Persistent complaints from co-workers about a particular employee.
  5. People waiting around to be told what to do instead of taking initiative.
  6. No innovation.
  7. High turnover in key positions.
  8. Higher overall turnover than best-in-class competitor.
  9. Managers spend more time “doing” instead of coaching, mentoring, recruiting and evaluating performance.
  10. Employees who aren’t held to the same standard because of their long tenure. i.e. their job is theirs forever.

At their core, these problems are human capital management issues that result in lost revenue, increased costs and lower margins. Ironically, some leaders find it easier to deal with revenue issues and their consequences than to learn how to build the right organizational structure and manage their human capital. By taking the time up front to do it right, they would grow faster, have more time, reduce costs, and expand margins. Instead, they choose what is comfortable.

Howard Shore is an expert in human capital management who works with companies that need help with recruiting, hiring and developing the best talent. To learn more about AGI’s executive coaching, management consulting, and leadership training, please visit his website at activategroupinc.com or contact Howard Shore at (305) 722-7216 or email him.

Employees Are Your Most Important Customer, Part 2

I wrote an article about the many reasons why your employees are your most important customers. I wrote about how keeping your employees happy is one of the easiest ways to keep your customers happy. Happy employees give great customer service and create great word-of-mouth for the company.

When I read an editorial in the New York Times written by an ex-employee of Goldman Sachs on his last day of work, I was reminded again about the value of keeping employees engaged. This is a real-life example of how unhappy employees can cause considerable damage to reputation and potential threats to customer retention.

The Goldman employee, Greg Smith, spent his entire career at the company, rising up in the ranks and maintaining a great amount of pride in the company and its values. He says in the wake of a recent leadership change, the company lost sight of its values to focus on blind profits. He decided to exit the company in dramatic fashion by writing this lengthy editorial detailing his first-hand experiences and resulting disgust. He exposed degrading language used within the company and the practice of selling worthless assets to unsuspecting buyers.

Was his account accurate? We don’t know for sure. Regardless, what he did (besides commit career suicide) was create a great amount of doubt in Goldman’s trustworthiness. Plenty of Goldman customers read that editorial and some probably considered whether it was worth remaining customers.

Remember, your employees are the eyes, ears and voice of your company. They can be your biggest cheerleaders or your worst nightmares. It is crucial you keep them engaged and satisfied. Training, coaching and communication are keys to their engagement. And if they become disengaged for too long they will tell you…or anyone who will listen.

Howard Shore is a management coach who works with companies that need leadership development and strategic business coaching. Based in Miami, Florida, Howard’s firm, Activate Group, Inc. provides strategic planning and management coaching to businesses across the country. To learn more about management coaching through AGI, please contact Howard at (305) 722-7216 or email him.