Posts Tagged ‘entrepreneurs’

How To Hold Your Team Accountable

Thursday, February 16th, 2012

Are you comfortable holding your team accountable? What does that actually mean?

Do you need to micromanage and babysit and punish every little mistake? Of course not.

Holding your team accountable means that you need to ensure they are aligned with your company’s goals and objectives. If you strategy is to provide high quality (and charge higher prices for that, which you deserve), then you need to ensure that your people, processes and performance are focused on quality. If your focus is on quality, then you might need to sacrifice speed.

After all, a drive-thru restaurant hamburger is not going to be as good as a prime rib hamburger at the fancy steak house, but it will be fast.

Holding people accountable is easy and transparent if you do these things:

  1. Have the team participate in setting their operational goals and benchmarks. For example, a production facility may set targets of units per shift.
  2. Measure the goal every day. It’s amazing how powerful this is to drive the behaviour that you want.
  3. Proactively ask the team what obstacles they encounter or foresee, and what ideas they have to overcome them.
  4. Help your team to be more successful. This is the key. Accountability doesn’t mean whacking them when they miss their goal. Accountability, and it’s a two way street, means that you are willing to be held accountable to helping them improve performance and be more successful.
  5. Celebrate success. Every incremental gain can increase confidence and momentum. This also reinforces that you are focused on rewarding positive behaviors.
  6. As a manager, beware of trouble-shooting for your employees. Part of the accountability is to develop their independence. When they present a problem or dilemma, ask them for their suggestions. If they don’t have any, give them homework and tell them to come back more prepared.
  7. It’s your job to allocate resources. Make the team come up with the ideas. Remember, with every pair of hands, you get a free brain.

Holding people accountable is as simple as keeping score of the important things in your business. The fewer things that you track, the easier and more powerful the process will be.

Copyright 2012. Phil Symchych. All rights reserved.

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My First Job, or “Stock boys are cool”

Tuesday, February 14th, 2012

As a teenager, I thought I was working for gas money and spending money. Many years later, I learned that every job that I’ve had has contributed to my understanding of people, of business and how different people lead and manage others.

I’ve worked in a variety of organizations, from a small retail store to a national bank and an international accounting firm. The cultures were vastly different and so was their effectiveness at motivating and engaging their employees.

My first job, when I was 14 years old, was working in a small department store called The Met, short for Metropolitan. We sold all types of dry goods including clothing, diapers, kitchen goods, cheap hardware, batteries, and my favourite, chocolate bars. We had to keep those under lock and key in the candy room! For some reason, the manager didn’t trust anyone with the key to the candy room. A valuable lesson learned.

My first boss, Peggy, was a great manager and she taught me a lot about treating everyone with respect, to ask their opinions and to let them think.

Now, as the stock boy, I didn’t have to think too much. But Peggy never told me how to do anything unless I asked. She told me what to do, but never how to do it. She was confident that I could figure it out. And, her confidence in me increased my own confidence, although most teenage boys seem to exceed in confidence, for some reason.

I could sweep a 6,000 square foot store in nine minutes flat. The best parts were the handyman jobs like climbing up to the roof or up on a 16 foot ladder to change the eight foot light bulbs. Did you know that they explode into a million little pieces if you drop them?

I also learned that I didn’t want to work in retail. The worst part was working in a basement inventory room, on my summer vacation, during the hot July weather, pricing school supplies. Didn’t I just get out of school? Apparently, retail works one season ahead of reality.

The best part was bagging. It was easy, you got to meet people, and I wasn’t stuck in that darn basement. I learned that just because I could fit something in the bag, it didn’t mean the bag could withstand the weight. Customers got very unhappy if their bag ripped and they dropped their purchases. The manager got really mad if the product broke and we had to replace it. Cause and effect, consequences, logic: all these were burned into a teenagers brain.

We also had ‘management trainees’ sent from head office to learn from Peggy. This was an interesting experience because the stock boy, and everyone else working in the store, knew more about the store than the trainees. The trainees tried to manage by position of power (their perception of it, at least) instead of by respect. That didn’t work very well. Actually, it caused the occasional mutiny and intentional lack of cooperation. The mutinies were an important part of their training experience.

The trainees learned a few things:

  • leadership doesn’t come from a title
  • the most knowledgeable people are front line people, not the people from head office, or their hopeful delegates
  • never let the 16 year old stock boy drive your car.

As a parent, I’m looking forward to the work experience that my teenage daughters will gain. They’re not. Working in a clothing store just might cure their fashionitis, or, they might spend all their money on clothing purchased with employee discounts. Only time will tell.

Copyright 2012 Phil Symchych. All rights reserved.

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Working Out With A Trainer Or A Consultant

Monday, February 13th, 2012

My wife bought a training video from one of the trainer guys (his name rhymes with Bob) featured on a television reality show. Uh, oh! Somebody’s been watching too much TV, me thinks.

After five minutes of the intense fifteen minute workout, I pulled something in my back.

Apparently, working out needs to be done regularly to be effective. So, I’ve booked an appointment with the local gym for an assessment (or sales pitch) so that I can get back into the routine safely and, most importantly, frequently.

Why is it that we all know that we should exercise regularly but only a few, hearty soles have the discipline to sweat it out?

As a former (meaning 20 years ago) recreational triathlete and hockey referee, I’m pretty disappointed with my current lack of conditioning. I almost get tired driving the distances that I used to cycle. Fortunately, my ventilated and massaging car seats keep me up for the driving task.

I’ve worked out with a couple of trainers recently and the results were amazing. First, the trainer didn’t care about any excuses. Second, he and she (they took turns) showed me how to do things correctly. Third, they pushed me harder than I would have ever pushed myself. Fourth, they provided constant feedback, instruction, and, occasionally, motivation.

There are some parallels to working with a consultant, you know.

Consultants can help you to:

  1. Focus on the most important things so that you don’t get distracted with the day-today busy work that won’t achieve your goals.
  2. Pursue your goals using proper techniques and practices that increase your odds of success and reduce the chance of hurting yourself or your business.
  3. Push you beyond your comfort zone, because, as Marshall Goldsmith says, “What got you here won’t get you there.”
  4. Constantly hold you accountable and give you feedback on your progress, suggest adjustments, and celebrate your successes.

The best part of working out with a consultant is that you don’t need to wear a heart rate monitor and you won’t pass out from over exertion. However, mental work still seems to require some heavy lifting.

It’s time to hit the gym.

Copyright 2012 Phil Symchych. All rights reserved.

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How To Run A Good Meeting

Friday, February 10th, 2012

“It’s 3:00 on a Friday afternoon. I could be getting some real work done before the weekend. Why am I here?”

Most of us hate meetings, or, more specifically, we hate wasting time in unproductive meetings. However, a well-run meeting can dramatically improve morale, align your people, and generate great results.

Running a good meeting is a critical management task that all entrepreneurs need to master.

Agenda

Agenda

Here are tips on how to run a good meeting:

  1. Distribute the agenda in advance.
  2. Require relevant people to attend, if absolutely required, only the specific parts that are relevant to them.
  3. Don’t make everyone sit through the whole meeting.
  4. Start on time.
  5. Set ground rules: cell phones, interrupting, not being critical during brain-storming sessions (ban ‘yes, but’ from your meetings).
  6. Allow the group to contribute to the ground rules.
  7. Be clear on the purpose of your meeting: presenting information (a poor reason for a meeting), discussing ideas (a better reason), or crafting an action plan and assigning accountabilities (a great reason for a meeting).
  8. Stay on topic. Set up a parking lot for unrelated issues. Don’t let people wander off topic. This takes courage and wisdom.
  9. If you are allocating time limits to topics, make sure you achieve your objectives such as creating action items and assigning responsibility.
  10. Have a designated person take notes so that action items and responsibilities can be clearly assigned.
  11. Less is more. Don’t try to accomplish too much.
  12. Finish on time (or early).
  13. Be positive, professional and prompt.

Ineffective meetings waste time, waste money, deflate morale, reduce your credibility and hurt your company. Or, effective meetings can generate great ideas, hold people accountable and improve your company’s performance. The choice is yours.

Copyright 2012. Phil Symchych. All rights reserved.

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Working with Mom, Dad or the kids?

Wednesday, February 1st, 2012

If you run or work in a family business, then you are a very important part of the economy. You may even have great (family) employees who are committed to the business and are willing to go the extra mile on short notice, often without extra compensation or overtime. After all, what is family for, if they can’t help out?

Family businesses face many unique challenges that threaten their short term success and long term survival. Things like professional management, leadership development, performance and profits are critical to any business and even more important to a family business that may be reluctant to hire outsiders for key positions. Yet many family owned businesses grow to become successful global companies because their strong family values and long term perspectives prevent the financial weaknesses of focusing on quarterly earnings.

Ford, a family owned business, is the only major North American car manufacturer that did not declare bankruptcy. Cargill, another family owned business based in Minneapolis, is one of the largest companies that feeds the world. Both of these companies generate excellent results and have very strong brands in the market.

Regardless of the size of your family business, you can access help, advice and resources from other successful family businesses.

The best organization that I know of for helping family businesses is the Canadian Association of Family Enterprises, or CAFE for short. Their website is here.

CAFE has many local chapters across Canada. The fees for a family business to join are ridiculously low compared to the value received.

I’ve been a member for several years. CAFE provides value in several ways. My favourite is the Personal Advisory Group, or PAG, where a small group of people from different families/businesses gets together monthly for a couple of hours in a confidential and safe environment to discuss and share experiences. The process is structured and lead by the group’s moderator. My PAG has provided me with great perspectives and advice and helped me to be a better husband and father in addition to being a wiser consultant and business owner.

The local chapters run workshops and have guest speakers that educate the members and exchange ideas.

There is a bi-annual symposium coming up in Ottawa on May 23-25, 2012.

If you own or work in a family business, then I recommend that you consider joining. Running a business, even with family, can be a lonely adventure. Joining CAFE will strengthen your business and your family.

Copyright 2012 Phil Symchych. All rights reserved.

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Speed

Tuesday, January 31st, 2012

What can you do faster in your business to provide even more value for your customers and clients?

In my experience, here are some great standards:

  • Hotel staff at the Ritz Carlton acknowledge every guest with eye contact and by saying ‘good morning/afternoon.’
  • A good retail store (such as Colin O’Brian) acknowledges you by name as soon as you enter.
  • When you phone a business, they answer on the second ring.
  • When you leave someone a voice message, they call you back within a couple of hours. My banker, the one with the red ‘S’ usually calls me back in ten minutes!
  • I placed an order with printingforless.com and they emailed me because they required additional information. I sent it, they acknowledged, implemented and sent back a proof in a matter of hours. Very impressive!
  • When you place an order online, you receive an immediate acknowledgement, just like Amazon does.
  • When you receive your order, you are sent an acknowledgement by the shipping company within minutes of delivery.
  • I emailed my technology gurus, KSP Technology, asking for a password. We received the information in four minutes! I love KSP!

On the other hand, here are some poor service examples that I’ve experienced in the last week:

  • I called a business today, was placed on hold, then the line became live and I listened to background noise. I hung up after one minute.
  • I called the same business back-twice-and no one answered.
  • Standing in line at the grocery store, the clerk is polite once I finally hit the jackpot and can put my stuff on the big belt. It wouldn’t cost anything for the manager to train the clerk (always blame management) to say, ’sorry for the wait, other than than total waste of time, how is your day going?’

Businesses use a combination of human contact and technology to provide fast service and, most importantly, acknowledgement to their customers.

Apparently, customers still like to be treated like human beings.

How are you doing this in your business?

Copyright 2012 Phil Symchych. All rights reserved.

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DUDS: How to fix a cooktop in only 54 days

Thursday, January 26th, 2012

“The stove doesn’t work,” said my wife. “Uh-oh” I’m thinking, “kitchen stuff.” This wasn’t starting well and it wasn’t going to end well.

The largest, main burner on our cook-top stopped working. “We’re supposed to host Christmas dinner and I need all my burners,” exclaimed my wife. She called the warranty company – because the repair man told us to always buy an extended warranty on today’s electronically sensitive appliances – and this commenced a lengthy exchange. She provided the serial number and the warranty company needed to send out the local service representative to take a look. Two weeks later, the service rep showed up, made a diagnosis, and left. Then, nothing.

My wife called the warranty company back. They never received any information from the service rep. My wife called the service rep. He said that he faxed the information and will resend it. We waited, and waited. My wife called the warranty people, to whom she wished a “Merry Christmas” because the season was upon us and we, well, my wife, weren’t cooking anything on the main burner. The warranty company still hadn’t received any information.

We called the service company, again. Eventually, my wife helped everyone figure out that the service company had the wrong fax number and sent our information to fax purgatory. Finally, my wife connected the service company’s information with the warranty company.

This is why consulting is so easy, sometimes. Large companies lack management skills and processes and don’t test their own products and services. Small and medium business managers can run circles around any big company manager who has a single department specialty and is busy protecting his turf, but I digress.

Our local company sent the information for the third time. We appreciated their persistence. My wife was now on a first name basis with the warranty people and had elevated her concern to the supervisor. The repair was finally authorized, then scheduled and, finally, performed.

Total time: November 24 to January 17. Only 54 days to fix a burner.

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What Can Entrepreneurs Learn From Economists

Wednesday, January 25th, 2012

Most economists that I’ve heard speak (well, two, to be exact) provide their services to major financial institutions and associations. Marc Faber is such an economist and he spoke to the local Chartered Financial Analysts (CFA) last night where a banker friend (yes, I’ll admit that publicly) treated me to dinner.

Dr. Faber has extensive global experience, having lived and worked in many interesting countries. His best credential wass that he visited Saskatchewan in January.

Here are the lessons for entrepreneurs.

  1. There are many investment alternatives including bonds, equities, real estate, cash and precious metals. These alternatives become more complicated when you factor in which industry sectors, countries and foreign currencies provide the best upside with the lowest risk. You need the help of a good professional to navigate all of this.
  2. Remember when our parents invested in Canada Savings Bonds? Life is definitely more complicated now.
  3. Interest rates will go up.
  4. Deficits in major economies such as the United States will continue to increase financial risk globally.
  5. Spending-and by that I mean government supported programs-on consumption is a short-term band aid solution that isn’t sustainable. Spending on capital such as equipment or research and development knowledge can create long-term value.
  6. Countries that print money, and that’s most of them, to try and stimulate the economy, end up creating long-term problems because they can’t control where the new money is being spent.
  7. A business that’s losing money won’t fix its problems by borrowing more money. You have to stop the bleeding first.
  8. The key difference between economists and entrepreneurs is that economists measure things with charts spanning decades and entrepreneurs measure cash today.

In my opinion, it appears that the best investment is in your own business! You know the customers, the suppliers, and the industry. You are in the best position to grow your business. Are you generating a healthy 10% or 20% return on investment in your business? You should be.

You must be proactive, know your numbers and act decisively. Otherwise, there is a factory in some foreign country that is using government funding to create jobs, doesn’t have a profit motive and is trying to enter your market with a ridiculous price. Sound familiar? Are you competing with five dollar an hour wages somewhere?

Here is my economic prediction: the experts still won’t be able to predict the future. No one can. That’s why you have to use your common sense. And, invest in yourself.

Copyright 2012. Phil Symchych. All rights reserved.

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Know Your Numbers by Phil Symchych

Monday, January 16th, 2012

The best managers, running the most profitable businesses, know their numbers. Do you know yours?

Here are several key questions that, when answered, will give you a powerful insight into your company’s profits.

  1. What are your top three products or services, as a percentage of your total revenues?
  2. What are your gross margin percentages for these top products and your company average?
  3. How much of your total gross profits do these top products contribute? Remember, the 80/20 principle can apply here.
  4. What is your overhead rate by hour or person or unit of production?
  5. What is your break-even sales figure each day, week or month?
  6. Who are your most profitable customers?
  7. How much time and resources do you spend building relationships and selling to your most profitable customers compared to other customers or non-customers?
  8. What percentage of your revenues come from proactive selling vs. reactive order-taking?
  9. Which customers pay the fastest or the slowest?
  10. What is your days to cash? That is, how fast do you collect your cash. To calculate: Divide your accounts receivable into your annualized sales and then multiply by 365. The lower the number, the faster you’re getting paid.
  11. Are you actively promoting your most profitable products and services to your most profitable customers?

Knowing your numbers can reduce your risk from guessing and improve the probability of producing profits.

Copyright 2012. Phil Symchych. All rights reserved.

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Don’t Aim For Yesterday

Friday, January 13th, 2012

SUMMARY: Aim high. Encourage risk taking and support failure. Hold people accountable for results. Provide constant feedback. Banish excuses. Pay for performance.

If you want to achieve success, you have to aim for success. That means that you need a marketing plan and a budget that push your people to achieve more. You won’t replicate last year’s success because the market keeps changing so don’t aim for yesterday. You need to aim higher and then innovate and implement your way to success.

Never tolerate a break-even scenario. There’s no such thing in the entrepreneurial world. If you’re not gaining, you’re losing.

Employees think and act differently from entrepreneurs and owners, as we all know. They are scared to fail. Give them permission to fail! They will learn that failure isn’t fatal and that you will support them. This is how they learn and how they will eventually start hitting home runs for you.

Constantly challenge your people to perform more, better and faster. They’re not motivated by a paycheque (but some can be, see below for more). They need challenges and feedback on their progress in order to raise the bar.

Listen for excuses and then observe your own behaviour. Are you tolerating, or even encouraging, excuses? Your business value, profit and performance are all your responsibility. No excuses!

Once you’ve got them focused on raising performance, as determined by measurable outputs and business results, then align this behaviour with performance based compensation. Don’t give them an annual raise because the price of eggs and milk went up, start adding performance compensation to their base. If they are in sales, most if not all of their compensation should be variable. After all, as a business owner, all of your compensation is ultimately variable, based on your business performance.

You will achieve more success by trying to win instead of trying not to lose.

Copyright 2012. Phil Symchych. All rights reserved.

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