Growth is Everything - Growth Guy's Blog

Getting Your Business Back In Shape – Are you sticking to your resolution?

2012-01-31T16:22:00.001-05:00

It is the fourth week in January and the annual migration of the New Year’s resolution crowd is already departing gym’s across the United States; not to be seen again until next year.

At the start of each new year there is an enthusiasm to get back into personal shape. This same phenomena is present in the business world. Each year business owners declare, “This year will be different. We will have a well thought out strategic plan. We will have an actionable yearly tactical plan from which we will judge our progress. We will hold regularly scheduled staff meetings to review our plans, assess the actions of our competitors, and examine our financial health. Yes, 2012 will be different!”

And by the end of January.... they are back into their old routine, with the fire drills of each and every day dictating the rest of the year’s agenda. And like the fitness birds migrating through the gym each year, this cycle will sure to be repeated over again the next year.

I want to share with you a different story; one with exciting results and very much analogous to the business world, in hopes that it will inspire you to stick with your resolution.

At the end of November, a good friend of mine sent the following text message, “I need help.” He wanted to get back into shape and after numerous attempts on his own, he felt the aid of an outside expert was needed. I agreed to be his personal trainer. Before we began I wanted to hear what goals he had in mind in order to assess if it was realistic. He stated two specific objectives; (1) get back down to 175 lbs and (2) have a pool-worthy body for a vacation he planned in late March. We then looked at his current state; 5’11” and 198 lbs. We had a little over four months (18 weeks) interrupted by Thanksgiving, Christmas and New Years, to lose 23 lbs. and build some muscle. His goals were possible, but would require a very strong commitment to reach them. He agreed to commit to a plan that I would guide him to establish and we began.

Much like the human body, a company without steady work “on” the business versus “in” the business will too become out of shape and lose the market strength, they once enjoyed. So, exactly how do you get back into shape, or get into shape for the first time ever, and what can you expect from the process?

Look in the mirror. Are you happy with the current state? Is the performance what you expect? Are sales meeting your expectations? Are you stronger? Are you still as agile and responsive as you once were? How do your customers view you? What will you look like in 3 years?

If you don’t like what you see or are not sure what direction you are going do something about it.

Set measureable, realistic goals to be completed at a specific time. In the business world this means capturing your vision, and balancing that with a clear unbiased view of how you stand relative to the competition and in the market for which you chose to compete. Steve Covey said it best in his book, 7 Habits of Highly Effective People, “Begin with the end in mind”.

If you have never done step number three or don’t know how, don’t let your ego prevent you from engaging an outside expert. A business strategist brings two very valuable tools to the table; (1) experience working with a variety of companies in various industries from which you will benefit, and (2) they will stop you from drinking your own bathwater (declaring something is core strength when in reality it is not all that different from your competitors).

Craft a written plan and stick to it. This means you review the plan regularly and use it to guide how you and your team utilize your time, invest your resources, and select your people.

Accept the fact that change will involve some pain. Operating leaner is hard and demanding. Holding employees and yourself accountable to specific and measurable goals is also tough. Fight through the pain knowing what you are doing is for the long-term health of your company.

Beware of excuses used to revert back to old behaviors or not complete an assigned objective on time. It is not physically possible to complete everything in the fourth quarter because you either procrastinated or came up with reasons for why it couldn’t be done earlier in the year as originally agreed.

Most likely progress will be quicker for younger companies than older. That’s just nature. Older habits and patterns of behavior are tougher to change. But don’t use this as an excuse not to.

Now for the rest of the fitness story: The first few weeks were quite hard. He was a bit embarrassed being seen lifting the small amount of weights on the bar. He complained of being constantly sore. He would try to throw out an excuse or two for skipping a day; “Bad knees” and “I forgot my brace” were the excuses he used when I first suggested he start a running regiment. However, to his credit, he always showed up for our workouts. I knew we had turned a significant corner when on week eight he suggested going to the gym on one of our off days. That same week he set a goal to run a 5K. He had embraced the change in behavior. I was no longer pulling him along. His own goals and the measureable progress were now providing the motivation.

With eight weeks to go he is down to 182 lbs., having lost 16 of the 23 lbs. we targeted. He could barely run for 20 minutes when we first started, but can now run a full 5K in 30 minutes and is working to improve his time. 12 pushups in a row are now 40. He has doubled the amount of weight he is able to lift and fits into clothing sizes that he has not fit into since college. We’ve recently incorporated swimming into our routine and he is already thinking a triathlon may be a worthy goal for 2013.

Like your body, there is no shortcut to getting your company back into shape. It requires an investment in time and resources and an absolute dedication to follow through. The rewards however can be amazing. Your leaner, stronger company will be better able to compete and adapt effectively in an increasingly demanding, competitive, and ever changing world market. So, get back into the gym!

About the author. Mike Gomez is President of Allegro Consulting, a growth specialty firm helping turnaround businesses wrestling with stagnant growth. He grew his very first client’s business from $8M to $35M in just two years. Mike is also a prolific speaker, writer, three-time marathoner, a former military officer and pilot of both aircraft and helicopters. www.allegroconsultant.com

Mike Gomez - 2012 Speaker One Sheet

2012-01-10T16:20:00.004-05:00

We are booking 2012 speaking engagements now!

3 Things That Will Surprise You - Entering the U.S. Market

2012-01-10T16:11:00.006-05:00

When consulting for international companies expanding into the U.S. market I’ve picked up on a few common issues that consistently catch the leaders off guard. “I had no idea ….” is how they typically started the conversation.

Let me share the top three:

1) I had no idea that it would take so long to establish a presence here (in the U.S.).

“It seemed to take forever to do all the mundane tasks necessary to get established,” said one client. “What made it worse was the home office had no comprehension of the time or effort it took to get the company up and running. Once they saw I had an internet connection they assumed we were in business and immediately began assigning tasks and planning visits. I had to tell them to STOP!”

Establishing banking credit, securing transportation, making living arrangements, turning on utilities, selecting an office location, furnishing that office, securing a phone and internet service, establishing the proper legal framework and setting up the bookkeeping is time consuming and can be overwhelming especially in a foreign land. Don’t underestimate the amount of time and resources this can demand. And be wary of the business vultures who will prey on your lack of local knowledge. Rethink the traditional start-up model. Leasing temporary furnished and supported office space while you get your bearings can be a prudent alternative and save a lot of the early headaches.

2) I had no idea how geographically large the United States really is.

A client shared this story, “….and after our meeting in Los Angeles we can drive to San Francisco and meet with our customer there before flying back home.” Upon telling the San Francisco client his plan he was embarrassed to discover it can take anywhere from 7-9 hours to drive that distance. Needless to say he had to plan for an additional overnight stay.

The good news is the United States is a large market. The bad news is it is a really large land mass and as such takes an unexpected amount of time and travel budget to get around. For example, the entire country of Germany is slightly smaller than the state of Montana. Spain is twice the size of Oregon. Japan is slightly smaller than California and Israel is almost but not quite the size of New Jersey. You can be certain the shear size of the United States will impact your sales, marketing, and logistics strategy more than you might have first anticipated. Keep this in mind when selecting a site to launch your U.S. endeavor. Being near a major U.S. airport can make life a lot easier for you and your traveling employees.

3) I had no idea that the sales cycle will take this long.

Though I hear this comment quite a bit I doubt this is unique to the United States. I think this would be the case for any foreign small or mid-sized business (lacking name recognition) entering a new market. It seems that no matter how hard you work to get a response to an email, a request for an appointment, a proposal, or a selection decision it always seems to take twice as long as you remember it taking at home.

A client recalled that even after multiple visits she was stunned to hear, “who are you again?” from a business she was calling. Partnering with established U.S. companies can speed this process. Leveraging a well connected business network is also an effective strategy to move you to the front of the line.

Prudent, conservative business decisions accompanied by a well vetted local sales and operational strategy makes the difference between success and failure – even in the lucrative and vast U.S. market. Delaying major expenses such as permanent office space until you become more familiar with your surroundings and daily routines is also a wise move. And finally, leveraging partnerships and a good business network can open the right doors and accelerate the sales cycle immensely.

Good luck and welcome to the United States of America.

Feel free to comment - share something that surprised you about doing business in the U.S.

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About the author:

Mike Gomez is one of the co-founders of the Global Success Centers, a ‘nesting site” for globally expanding small and mid-sized businesses coming to America. He is also President of Allegro Consulting, a business growth specialty consulting firm.

Mike created Allegro Consulting to address a need for individualized business consulting for small and mid-sized service and manufacturing businesses in Georgia. The Global Success Centers was launched to provide a safe and readily available business infrastructure for international small and mid-sized companies coming to America. Teamed with Regus plc, Paladium CLOS, and TechCFO, the center provides office space and onsite CFO, CLO and a business development strategy management team determined to see your company succeed in America.

Contact info:

Corporate website: www.AllegroConsultant.com

Direct email: m.gomez@AllegroConsultant.com

Phone: 678-908-8433

Corporate website: www.globalsuccesscenters.com

Direct email: m.gomez@GlobalSuccessCenters.com

3 Lessons from those that Failed - Global Expansion

2011-10-24T13:09:00.009-04:00

I was asked to give a presentation to owners of American companies who were contemplating a global expansion growth strategy that would take them outside the United States. I decided to share with them some of the lessons I gleaned when working with foreign companies who were struggling to be successful here in America. After all, as someone once said, "Learning from your mistakes is smart, … learning from the mistakes of others is wise".

Here are my top three lessons from those who failed:

1) Exporting or Global Expansion Should be Part of an Overall Strategic Plan and Not Simply Done on a Whim

"Why did you choose to go global? Why now?" When asked these questions I was surprised that most owners did not have an answer other than to say “it was time”; that they succeeded sufficiently in their own country and now it was “time” to take on America. In some cases they came to America on the heel of or at the urging of their biggest customer – another foreign company - who also decided “it was time”.

I would then ask some more basic questions such as how well did you understand your relative strengths and weakness and the opportunities and threats associated with this marketplace before coming here? What did you identify as the top barriers (regulatory, legal, financial) to entry? What plan did you put in place to overcome these barriers? Who are you targeting first for new sales? What is the competition and how did you intend to compel customers to buy your product or service over that competition? Not surprisingly the vast majority who were struggling here in the U.S. did not have answers for these basic questions.

Growing a business in your own country is hard enough. Improve your chances of success abroad by taking the time to study the market you are about to enter. As you build your strategy get an outsider's perspective (preferably a native of the country you are thinking about entering) to make certain you are being brutally honest about assessing your companies strengths as they pertain to this new market. Bottom line - have a well vetted, LOCALIZED, and documented strategy before you launch your undertaking.

2) Don't export more than you must.

Remember, when globally expanding into a new country success will be determined by how well your product or service sells. If it is a product you will be making the case for why or how your product is better than the competitors - price, quality, and/or capability. On the other hand if it is a service you will be emphasizing your unique process and why it is better than the competitors. This is what you are exporting.

Here is what you should NOT be exporting - your country flag, your people, your brochure (see example (above) from German company - sometimes "englishizing" is just not enough), you sales approach, or even your website. The only exception is if any of these elements can improve your chances for opening a door, making a sell or closing a deal.

For example, if you are a German company selling precision machinery in America I can see where emphasizing the German aspect could be a competitive advantage. The same would hold true for France and wines. But if you are a Chinese company selling faucets or even solar panels here in America there is very little the Chinese element brings to the sale. Careful thought and scrutiny must be given before you choose to export these latter aspects (people,website, etc..) of your company because there are very few circumstances where the flagrant broadcast of the country of origin for the product or service actually contributes to the sell. On the contrary, here in America it may cause an unwanted distraction at best or negate any chance of a sell at worse.

3) Beware of ego driven, cash sucking business decisions.

More often than not the reason most companies don't succeed here in America is because they run out of the cash they set aside for this venture. You will note that I didn't say they didn't set aside enough money, because most do. Where they fail is the choices they make, particularly in the first 12 months, on what, where, and how they spend their money.

Elaborate office space, signage, furniture, leased vehicles and homes all for the purpose of "making a good impression" is one sure way to burn through a lot of cash before you find your first customer. Flailing around trying to find a sales strategy and message that works in this market is another way to consume a great deal of cash and time (one in the same). Localizing your sells and business strategy for the American market versus trying replicate the strategy you used at home is one way to prevent this. Putting tight controls on cash by delaying the elaborate office expenses until after you have had time to understand the local market and your true needs is another prudent course.

America is a magnet for globally expanding international businesses. Our large population, high medium income, high GDP, transparent legal system and common language makes it very attractive. But succeeding in America requires you to first understand how we make buying decisions - it is different in subtle ways from the rest of the world. And, like every country, you must guard against the vultures who will prey upon your naïveté. A well crafted localized strategy, a script for your business in America, will help significantly.

What Script is Your Business Following

2010-12-10T18:34:00.006-05:00

I was speaking to a large gathering of business owners and was asked whether there was an inherent conflict between planning for growth and the more free spirited entrepreneurial-like approach - where you stay agile and react to opportunities as they arise (i.e., operate without a plan). This was a great question as it addresses a big misconception about planning - that it somehow hand-cuffs a business in any way.

To answer the question I asked the audience to imagine themselves walking onto the set of a movie production. Then imagine grabbing the megaphone and asking everyone on the set to freeze for a moment and to please hold up their script for the day. In this case, none of us would be too surprised to see that the cameraman, the director, the soundman, the grips (I still don’t know what they do), the actors, and even the caterers will all be able to produce a script for that specific day. A movie will never come together without one.

Now take that same megaphone into your own business and ask your leadership team and employees to produce their script for the day. How will they react to this request? I suspect most will give you that “deer in the headlights” look.

There is not a producer in the world or investor that would pursue a movie production without a well written script. The idea is simply preposterous. Yet most of us will run our businesses without one.

The script for your company is a plan - a simple concise document which aligns all of your team around a common objective or end-state and consistent with your vision. And, like the script for a movie, there are portions written specifically for specialized roles. Sales, operations, finance, human resources, marketing should each have a script which defines the specific tasks they must complete (and when) to keep your “movie” progressing.

The script governing the day-to-day operations are process documents which describes how a product or service is produced and delivered within your company.

You will find that businesses which grow consistently year after year operate to a well vetted long-term (3 yr.) and short-term (1 yr.) plan. It is the plan they will refer to first BEFORE making a hiring decision, investing in capital equipment, or spending precious cash on marketing campaigns and website improvements.

Likewise, these same companies recognize that the process by which they produce a product or service can impact competitiveness. By documenting these critical processes they will eliminate the risk of being dependent on any one person’s memory or contribution. It will also give them a foundation from which to explore innovative changes that will improve efficiency and thus increase profitability.

Now I hope I have convinced you that like a movie your business too requires scripting. Can you imagine actors, cameramen, and set designers coming to a specific location and then left to their own to interpret the verbal instructions of the producer’s vision for a movie. It would be chaotic at best with numerous costly ventures down one frustrating cul de sac after another. Entrepreneurial or not, is this the atmosphere for a growing thriving business? No.

So, where is the script for your business? It is worthwhile to note that since 1980 over 70% of the winners of the Academy Award for best picture also received the Oscar for best screenplay – the script.

How to Stimulate Jobs

2010-06-09T17:16:00.004-04:00

I participated in a small business round table discussion last month at the Metro Atlanta Chamber of Commerce with Dennis Hightower, Deputy Secretary of the Department of Commerce. He was traveling throughout the United States meeting with business leaders to gather ideas on additional steps the government can take to spur job growth. He clearly had another more important mission - to remind us, using a well rehearsed list of statistics about the amount of stimulus money the Obama administration has sent to Georgia. One message he heard in response to this, was all the money appeared to be going exclusively to large corporations. Little, if any, was trickling to small businesses.

One point Hightower made that I will wholeheartedly agree with is that jobs will return only when consumers and businesses start buying again. I added to his thought saying this will occur only when businesses induce customers to buy with relevant products or services they need and want, at a price they are willing to pay. This means businesses must adapt to the new fiscally conservative customer, not the other way around.

Hightower agreed and sighted as a success story a fiberglass molding company in California that used to produce interiors for luxury boats. At one point, the company employed more than 300 highly skilled craftsmen. But with the recession, the business suffered a drastic decline in sales and was barely holding on with just 30 employees. Hightower said they helped this company identify a new emerging market for its skill-sets – producing green energy turbine windmill blades - and now the company is growing again.

This is a great story, but I reminded the Deputy Secretary of the amount of resources (dollars/expertise) it took the owner to develop and implement the new business strategy and to retool the company for this new market. He admitted it was significant. I also reminded him that most small and medium sized businesses just do not have these kinds of resources – either the cash or the expertise.

I have seen first-hand how introspective business owners recognize the need and genuinely want sound strategic growth advice yet are so cash strapped they can’t and won’t pay for such services. So, on the one hand you have the administration wisely encouraging small business owners to change their product or service to meet the demands of the new cost-conscious shopper, while on the other hand many of these same owners don’t have the tools or resources to make such a strategic move.

This recession will be historic by its unique statistics. The net worth of the average American has dropped in dramatic fashion. At the same time, the debt level of most people has skyrocketed, as they are using personal credit to stay a float. The combination of these ingredients will slow the recovery as the first priority will be to pay off debt and recover wealth.

For business owners to be successful in selling to this customer, he must devise a strategy that will result in a product or service that is timed right and has overwhelming value and appeal. It is these businesses that will succeed and generate the jobs President Obama is looking for.

The Small Business Growth Council (SBGC) of the Metro-Atlanta Chamber of Commerce followed up Hightower’s visit with a letter addressed to him. In it we made several recommendations including the following for spurring job growth: Make federal stimulus money available to small-and mid-size enterprises to engage outside service professionals for the purpose of devising a new 3-year strategic plan and one-year actionable tactical plan to prepare them for the new fiscally restrained customer and/or guide them to an emerging growth market.

Though not an advocate of unfunded government spending, if Washington intends to spend the money anyway, the SBGC felt its recommendations will put those expenditures to better use and result in long-term, sustainable job growth.

Only through sound strategic planning and with an actionable script can a company transform itself with the right efficiency improvements to price its products or services in a manner that compels customers to start buying again or reveals and facilitates the move to new emerging markets (similar to the example about the new windmill blade producer) where customers and businesses are spending money.

What Sets You Apart From Your Competitors? - A few words on Core Competency

2010-03-31T14:08:00.002-04:00

I attended a gathering of a select group of small business owners who were runner-ups for the “Small Business Person of the Year”. During the event each owner was asked to stand up and briefly state what they thought made his/her business so successful. One of the owners stated proudly it was his employees - he felt he was able to attract and retain good employees. That was his “secret”. Later, I had the opportunity to privately ask him what made his employees “better” and how was he able to attract these better employees.

“Are your employees more qualified than industry standards - have higher degrees?” I asked.

“No”, he replied.

“Do you offer better benefits or pay and thus can attract better employees?”

“Uh, no.”

“Do you offer performance incentives or shares of company stock?”

“No.”

“Is your work environment any different than others in your industry?”

“No.”

“More vacation time, gym memberships, or other perks?”

“No.”

“So then why then do you believe it was your employees and your ability to attract them that sets you apart from your competitors?”

He hesitated, gave a puzzled look, then said he didn’t really know.

The sad fact is this company president didn’t know what attribute made his company successful. Most likely his employees are no more or less qualified than other in his industry. And because he doesn’t know, he is more likely than not to stray away from it or unknowingly allow it to waste away. Once this happens, the business is gone.

This owner did not know or understand his company’s core competency; the unique thing they do or process they employ or value they add to win business that would be difficult for their competitors to imitate. Your company’s core competency is the foundation of your business and therefore you should know how to identify it, nurture it, and exploit it if want to successfully grow.

Let’s take a moment to discuss, as an example, the core competencies of two well known businesses, Dominos Pizza and Honda.

Dominos made its mark by guaranteeing a quality pizza delivered to your door in 30 minutes or less. Their core competency was the “process” they designed starting with the how they selected the store locations and ending with the delivery method. It was this value added benefit (a warm pizza delivered quickly) that drove their customers to choose their product over the plethora of other pizza restaurants. Dominos continuously invested to refine that process (their core competency) and keep it as a discriminator and a method for growing their business beyond pizza to now include hot wings, pasta, etc....

Honda’s core competency was building high quality, reliable, light weight engines; first for motorcycles then later small cars and the rest is history. Their continual investment in engine technology is a reflection of how well they understood what made their product the preferred choice regardless of whether it was in a weed whacker, a lawn mower, an ATV, a motorcycle or a luxury automobile.

What is your company’s core competency(ies)?

By the way, it is very rarely “our customer service” or “our people” as this is considered a prerequisite for participation or an expected standard of most businesses.

Investing in your core competency will ensure it continues to provide you with the competitive advantage necessary to grow your business.

About the author: Mike Gomez is the President of Allegro Consulting, an Atlanta-based business growth specialty firm. Mike has helped companies large and small, international and domestic, plan and execute their growth strategies. Allegro provides operating advice to businesses and organizations on a wide range of management issues that effect growth, such as strategic and organizational planning, marketing, sales and business process improvement. www.AllegroConsultant.com

Going International! - The Fundamental Rules of Business Still Apply

2010-03-31T13:52:00.004-04:00

Over the past year I have met with several small and mid-sized international businesses that have chosen Metro Atlanta as their launch site for international growth into the U.S. market. Our high consumer spending rate, low relative business cost, and significant service industry focus makes America a prime destination for foreign companies who choose to grow their business through international expansion.

Germany, France, Israel, Brazil, Ireland, and the UK are the home countries of some of these businesses and in most cases I was thoroughly impressed with their product or service offering - it was unique and I could quickly see the value proposition. But their venture in the U.S. was not succeeding. I suspect some will soon give up and return home - having spent thousands of dollars on office space, computers, staffing, advertising, corporate legal fees, and travel.

So where did they go wrong? Some of this may surprise you.

 No plan – As big a deal as it is to go international not one of these companies had a strategic plan in which expansion into the U.S. was a critical and important element. In each case, the owner either arrogantly felt they had succeeded sufficiently in their own country and/or had some international success to declare it was time to expand into the U.S. market. Some, on the other hand, were “encouraged” to make this move by their prime global customer (i.e. we are doing business in the U.S. and we want our suppliers here as well.) Regardless, it was clear that little time was spent studying the business climate, understanding and defining the short and long term opportunities, the competitive threats, and how best to take advantage or minimize their relative strengths and weaknesses in this pursuit.

 They sent their best salesperson to launch the business … who quickly found themselves making critical operational decisions such as where do we best locate the company, what size and type of office space do we need, what accounting and law firms do we retain, what are our computer hardware, software and network requirements, phones, banking, our staffing needs and the appropriate compensation and benefits, etc…. This poor person whose skill-set is sales is forced to make significant and long lasting business decisions better suited for a COO or CEO. Worse yet, that salesperson has little time remaining to pursue critically needed sales.

 “Englishizing” their marketing material and sales presentations – If the message worked in Germany or France then, when translated (by our German or French marketing firm), it should work in America, right? Wrong.

 Poor/excessive fiscal spending – Rather than preserving capital these companies spent lavishly on office space and furniture, homes, office staff, new computers and networks. Sadly, several followed poor advice or purchased higher priced products or services than needed from supposedly trusted companies of similar nationality who they later discovered did not necessarily have their best interest in mind.

 Bad local hiring decisions – No written job descriptions with qualification and expectations clearly outlined was used when hiring their American leadership or sales staff.

 Poor support, if any, from the home office – There are few experiences more deflating than when calling the home office in Europe, looking for assistance, only to find everyone has gone home for the day.

Going international is a legitimate growth strategy whether you are a U.S. company or one from Germany. But the fundamental rules of business apply. First and foremost it starts with a plan.

About the author: Mike Gomez is the President of Allegro Consulting, an Atlanta-based business growth specialty firm. Allegro provides operating advice to businesses and organizations on a wide range of management issues that effect growth, such as strategic and organizational planning, marketing, sales and business process improvement. www.AllegroConsultant.com

Accountability - A dirty word or a must for business?

2010-03-31T13:41:00.005-04:00

Recently we watched President Obama accept full responsibility for the multitude of opportunities by the different federal intelligence agencies to “connect the dots” and prevent the “Underwear Bomber” from boarding a flight to the United States. Throughout his speech the President used some variation of the word “accountable” yet he never stated how he intended enforce accountability within his administration.
Does this word not have any teeth any more? Has it been relegated to the same politically incorrect or overused under-enforced trash heap of words such as “deadline,” “delivery date,” “fixed price,” “trust,” and “customer service”?
I contend that if your business has any ambitions of growth and long-term success then enforcing personal accountability is a must.
My experience in government, corporate America, small business and non-profits has taught me that mediocrity begins the moment leadership fails to hold their people accountable for not achieving specific goals and objectives on time. The message sent when this occurs is viral, spreading with firestorm-like intensity and speed throughout the company or organization. And, like a firestorm, the damage can be overwhelming and take years to overcome.
So what does it take to create a culture of accountability in your business?

1) A Plan - First and foremost it takes a written plan. Operating to a well thought out three-year strategic and one-year tactical plan is one of most important characteristics of companies and organizations that grow consistently in good times and bad. But, just having a plan is not enough. The plan has to be shared which allows every member of the team to know his or her role in its execution. Just as a movie cannot be made without a detailed script for the actors, cameraman, director, etc., a business owner cannot hold his or her employees accountable for completing their “movie” (tactical plan) without first giving them a script.

2) Written Job Description - The relationship between an employee and employer is a contractual one. As far as the business is concerned it should be nothing more. In return for a set amount of compensation and benefits, an employer expects you to have a certain level of experience and education, work a scheduled number of hours and be held accountable for defined responsibilities. With both a plan and a written job description in place, an employer has taken the steps to remove the excuse of “I didn’t know” as a means for employees to fend off accountability.

3) Resources - You cannot hold someone accountable unless you have given them the resources to do the job you’ve assigned. If, for example, you expect someone to build a widget in a certain timeframe, then you must ensure the employee has the materials, tools, instructions, and the proper environment to complete the task. The same is true for your salesmen. You can’t hold them accountable for meeting sales objectives unless you have first given them the value proposition, a clear understanding of the competition and other tools necessary to uncover prospects and close the sale.

4) Implication for Failure - Finally, and most importantly, there must be consistent repercussions associated with failure. A plan or job description is useless if you don’t hold the individual and leadership accountable for fulfilling their responsibility and meeting specific goals and objective. Tying bonuses or a portion of base pay to objectives is one method. Private or public rebuke when a deadline is missed is another. This is clearly a personal decision, but whatever the repercussion, it must be doled out with consistency.

Maintaining a strict culture of accountability does not, as some believe, negatively impact morale or performance. On the contrary, this culture takes away ambiguity and ensures each and every individual knows what is expected of them and as a result keeps them focused and comfortable knowing that if they perform they have a long future.

About the author: Mike Gomez is the President of Allegro Consulting, an Atlanta-based business growth specialty firm. Allegro provides operating advice to businesses and organizations on a wide range of management issues that effect growth, such as strategic and organizational planning, marketing, sales and business process improvement. www.AllegroConsultant.com

What Should I Be Doing Now? Advice to Business Owners Who have Survived this Long

2009-10-09T15:19:00.006-04:00

What should I being doing now? This is a question I have been fielding a lot lately by the “survivors” - the business owners who had sufficient cash and made the necessary adjustments to their business practices to survive the current recession thus far. Though folks in Washington, DC want you to believe the recession is officially over, it will be some time before a true recovery is felt by business owners and consumers alike. So, what you should be doing now is position your company for that recovery. Here is some of the advice I have been giving my clients:

1. Plan and prepare for the new economy. This recession has rocked both businesses and consumers in a significant way. It will be a long while before they return to old spending habits. The businesses that will thrive in the new economy will have recognized this and adjusted their product offering and business practices accordingly. Strategic planning here is crucial. Identifying your business’s strength and weaknesses, and the external opportunities and threats (SWOT analysis) is an essential element to crafting your plan. As one would never fathom making a movie without a script, transforming your business for this new economy without a plan is equally absurd. I would caution this is not something you do on your own as it requires someone to challenge your assumptions to make certain you are not drinking your own bathwater by building a strategy around a company strength that really isn’t. There are too many examples of companies who have made this mistake and expeditiously and efficiently strategic planned themselves right over a cliff.

2. Continue to be conservative with cash. I recommend labeling all cash expenditures in one of three categories, (a) Value-added, (b) Non-value-added but necessary, (c) Non-value-added - scrutinizing the latter two more closely. Value-added expenses are those that directly contribute to the value and/or quality of the product or service (skilled employee, machining tools, raw material). Your customer would not hesitate to pay this line item if he/she saw it on an invoice. Non-value-added but necessary are expenses required to do business and thus cannot be eliminated (business license, tax preparation fees, business planning). Your customer will acknowledge and recognize these very limited expenditures as the cost of doing business. Non-valued-added are all cash expenditures which do not contribute to the quality or value of the product in the eyes of the customer (office furniture, company cars, copy paper, Blackberry). I am not suggesting you do not spend the cash - regardless of the label, but that you make a conscious decision about each expenditure knowing it burdens the cost of the product and/or the profitability of the company.

3. Resist the temptation to return to old habits and practices. These fundamental changes in spending habits by businesses and consumers are here to stay - at least for the foreseeable future. Personal savings and retirement accounts have been hit hard by this recession. Any extra money that is made as we emerge from this economic downturn will be used to re-supply those accounts not only to the levels they were but with additional padding. Having an actionable plan and holding yourself and employees accountable to that plan is the single biggest deterrent to returning to the less disciplined approach of running your business. The plan - especially when shared with all the employees - will also help set the new tone for the company both in the way of personal expectations and instilling confidence in the future.

About the author: Mike Gomez is the President of Allegro Consulting, an Atlanta-based business growth specialty firm. Allegro provides operating advice to businesses and organizations on a wide range of management issues that effect growth, such as strategic and organizational planning, marketing, sales and business process improvement. www.AllegroConsultant.com

What Venture Capitalists Look for in a CEO - a Model for Any Business Owner

2009-07-08T15:13:00.006-04:00

I attended The 2009 TAG/GRA Business Launch Competition Finals, hosted by IBM, where three high-tech start-up companies were competing for $100,000 in funding and another $200,000 in professional services. Prior to the finalists’ presentations, the audience had an opportunity to address questions to the judges’ panel made up of leaders of nationally recognized venture capital firms. One of the most interesting answers was in response to the question, “What characteristics do you look for in a start-up CEO?” It was no surprise the attributes they identified for the CEO of a start-up company are exactly the same as those for an owner of an established business. Take a look at these characteristics and see how you compare.

Ability to focus - In the day-to-day life of a business owner, it is easy to get distracted by the internal fire drills of the day, external market forces, and actions by your competitors, suppliers or customers. Before you know it, three, six, nine months go by, and you have failed to do any of the strategic actions you cited were necessary to keep your company on a growth path. The business owner’s ability to stay focused on those critical actions is paramount to any growing company.

Be disciplined with capital - Cash flow is the life-blood of any business. The tone for how cash is spent in a company starts with the business owner. Do you know where your cash is going? One test for fiscal discipline is to evaluate spending as a defendable direct charge to your customer. You may be amazed by the amount of money spent on non-value added activities and items.

Connect “outside” with “inside” - The ideal CEO is one who is able to connect internal developments and activities with the outside marketplace. They accomplish this by responsibly delegating internal roles so they have sufficient time to stay connected with their market and customers. It is all about balance.

Ability to recognize when additional management talent is needed - In the words of one veteran venture capitalist, “CEO’s are the biggest impediment to growth by failing to build out the right management team.” In these cases, the CEO either fails to acknowledge he needs help, or he makes bad hiring decisions. Failing to meet specific goals is one clear indicator that help is necessary. The latter can be addressed by having a well-written job description with specific performance expectations and qualifications.

Be coachable - As the business evolves, so must the leaders - especially the CEO. The first step here is to acknowledge you don’t have to be the expert in all fields; and second, there are folks out there with the experience and knowledge to advise you on new business processes and approaches for growing your business. How receptive are you to these two facts?

Transparency - no surprises - Garnering the confidence of investors, banks, board of directors and employees alike is critical to the long-term growth of a company. This confidence comes from backing your words with specific actions, ideally those consistent with a written plan, and disclosing early when critical milestones won’t be met with a plan for how you intend to recover. Surprising your employees or investors is a certain path for losing the essential support needed for growth.

Be nimble - Don’t be so caught up in your business model that you are unwilling to deviate from the plan when market forces are telling you that you should. History if full of examples where business owners insist the market will eventually come around to buying their product or service.

About the author: Mike Gomez is the President of Allegro Consulting, an Atlanta-based business growth specialty firm. Allegro provides operating advice to businesses and organizations on a wide range of management issues that effect growth, such as strategic and organizational planning, marketing, sales and business process improvement. www.AllegroConsultant.com

The Threat in S. W. O. T.

2009-04-24T15:53:00.003-04:00

I was given the privilege of being the Chairman of this year’s Selection Committee for the next recipient of Metro-Atlanta’s Small Business Person of the Year Award. It was quite an experience as there were several outstanding candidates. The announcement of the top five finalists and winner will occur at the Metro Atlanta Chamber on May 21st during an event-filled Small Business Day.

What was interesting to discover in this process of selecting the winner was the variety of answers we received to the first of three, and the only business related question asked during the personal interviews. The question was: “We know the importance of strategic planning in facilitating the long term growth of a company…. the basis for building a strategic plan rests with a thorough SWOT analysis....and one element of the SWOT is Threats. Other than the economy, what is the single biggest threat to your company’s future growth?”

We asked this question to get a sense of how well these small business owners truly understood their business and did they, in fact, have a plan for growing their company.

Before reading further, what would your answer be to this question? Write it down.

Now read on.

Here is a quick recap about SWOT. SWOT is the acronym for Strengths, Weaknesses, Opportunities, and Threats. A SWOT analysis is usually done as a prelude to building a Strategic Plan. It drives you to look at your business both internally (Strengths and Weaknesses) and externally (Opportunities and Threats). With this analysis completed, you have the material necessary to craft a Strategic Plan - a plan that should address how you intend to enhance your strengths, minimize or correct your weaknesses, exploit the market opportunities and counter the threats.

Though this may sound simple enough, surprisingly very few small and mid-sized companies undergo this assessment. Worse yet is they perform this appraisal but fall into the trap of drinking their own bathwater by believing, for example, something is a Strength when in reality it is simply a minimum customer expectation. “Our people” or “our customer services” are the most common Strengths I hear from business owners that fit this - bathwater - category. You have to have some highly credentialed (PhDs...) staff or be constantly providing ultra-extraordinary customer service experiences to make either of these legitimate business strengths.

So what are legitimate Threats to a business and why is it important to identify them? First, as far as a SWOT analysis is concerned, a Threat is an external force - never internal. Second, accept the fact every business has real Threats which should be acknowledged and guarded against. Third, failure to identify these Threats and take action to counter them can bring a business to its knees.

There are numerous case studies of businesses large and small that either failed to acknowledge a Threat (“we have no threats”), or failed to change course to counter a threat. Imagine being that company producing tube televisions because you didn’t think LCD - flat panel technology - was legitimate or the mighty internet company (Yahoo) who produced the first marketable online search engine yet failed to believe anyone could make a better product (Google).

As a business owner you should clearly understand the threats to your future growth. Whether it is technology that makes your product or services obsolete (digital camera vs. film), a new trend (Facebook) which renders your product (MySpace) passé, or a competitor who is marketing a better “mousetrap” (iPod), it is incumbent on you to not only be aware of these Threats, but have a strategy in place on how you are going to thrive despite them.

About the author: Mike Gomez is the President of Allegro Consulting, an Atlanta-based business growth specialty firm. Allegro provides operating advice to businesses and organizations on a wide range of management issues that effect growth, such as strategic and organizational planning, marketing, sales and business process improvement. www.AllegroConsultant.com

2009-03-10T17:36:00.000-04:00

"Business Growth Expert Chosen to Chair Selection Committee for The 23rd Annual Small Business Person of the Year Award - | TechLINKS | Linking IT Needs, Knowledge & Solutions"

Downsizing the Right Way

2009-02-24T13:23:00.003-05:00

Well, it was just a matter of time before this topic came up. Even the best run companies - those that plan well, hold their people accountable, and make prudent investment decisions - may still have to resort to “downsizing” as a means to stave off unbearable financial losses. Though most state and federal laws allow an owner/CEO to make these decisions without prejudice it may be prudent to seek some professional HR guidance beforehand. The topic I would like to discuss here is how best to reallocate tasks and responsibilities to those who remain.

I know of two Fortune 500 companies who, because of slumping sales were forced to lay-off a number of their sales team. They told those who remained they were expected to service not only their original clients but a portion of the clients previously serviced by those who were let go. No expectations were changed with regard to the quality of work, number of sales calls or internal reporting, and no pay adjustments were given to these remaining salespeople. Does this sound familiar? It is by far the most common approach taken my most CEO’s and, in my opinion, one of the worst.

Let’s analyze this.

I start with the assumption that prior to the downturn each and every salesperson was gainfully employed with challenging goals defined, clear written expectations set, qualifications identified and fair compensation for their services agreed upon. That is afterall how successful companies operate. There was no slack in the workforce, no dead wood, no one not pulling his or her weight; because if there were, you, as the CEO, would have dealt with it immediately.

Then the economy slows. As a result, demands on your sales force increases exponentially as it takes that much more creative effort to reach deal closure. These increased demands likely include internal reporting, more frequent status meetings, miscellaneous administrative duties (expense reports, etc...) and the need for more frequent customer calls. If anything, under these conditions, a well managed sales force is working harder than ever. Their plate is full.

Then the lay-off occurs. And, without any change in expectations or compensation you pile the workload from those laid-off onto those few who remain. Sounds kind of silly when you read it in print doesn’t it? How well do you think your clients will be served under these conditions? What impact will this approach have on your remaining talented workforce?

Here is how some owners/CEO’s explain away this action.

“Hey, you don’t understand, the work still has to get done.”

Or, “you don’t understand, they should be grateful they still have a job.”

Or, “you don’t understand, everyone has to make sacrifices.”

Though I fully understand things still must get done in tough times, I challenge whether sufficient effort was made to examine all tasks and determine which fall into the “critical must” category versus the “not as important”. Secondly, I will never agree with the notion of being “grateful for a job” - as if a job is some sort of charity. This is demeaning and insulting. A job is a business contract between an employer and employee trading compensation and benefits for an agreed upon service and performance expectation. Which leads me to the matter of “sacrifice”. Yes, sacrifice is and should be reasonably expected from everyone equally for an agreed upon period of time. It is when this “sacrifice” becomes the expected norm that the term exploitation comes to mind.

So what is the “right way”?

Have a plan and communicate it. Be honest with your workforce. Let them know the real story and share with them your plan for survival and recovery. Your employees are more perceptive than you think and are more likely to embrace your request for sacrifice if they know you have a plan. By doing this you instill confidence as their leader but more importantly you set the finish line or timetable for when things return to “normal”. Like distance runners who understand the importance of pacing and the timing of their “kick” to the finish line, your remaining employee’s can and will increase their pace as long as they know where that finish line is.

Be respectful and realistic. It is neither respectful nor realistic to tell someone he must fulfill his 40-hour assignment and that of the laid-off employee(s) with no adjustments to expectations or duties. Prior to any lay-off, take the time to analyze work expectations and decide what tasks are “must have” versus “nice to have”. Eliminate those you can so the remaining employees will concentrate on the important duties. Better yet is to bring the employee into the discussion. By doing so you may discover tasks you have imposed that have a much larger impact on their time than anticipated.

Finally, acknowledge their “sacrifice”. Let them know how much you appreciate them stepping up to the plate to take on the additional work (typically with no additional pay or benefits). Encourage them (and be sincere about this) to come to you if the burden gets to difficult. This will assure you have the opportunity to move work assignments around or take other measures to adjust workload before your customers or the internal operation is under-serviced.

About the author: Mike Gomez is the President of Allegro Consulting, an Atlanta-based business growth specialty firm. Allegro provides operating advice to businesses and organizations on a wide range of management issues that effect growth, such as strategic and organizational planning, marketing, sales and business process improvement. www.AllegroConsultant.com

Business Mistake #17: The “Possum” Strategy

2008-11-18T19:59:00.004-05:00

News that home foreclosures are continuing to rise has put a wet blanket on consumer spending. The banking bailouts have not only shaken the confidence in one of America’s most conservative business institutions but it has also made precious credit for growth even more difficult to come by. And, on top of all of this, we have a new President about to take office with practically a one party Congress.

How is a business owner suppose to plan in this environment? If you are like most, you will freeze and resign yourselves and your company to whatever fate bestows upon you - hoping for hopes sake you can react quickly enough to limit the damage from the new market forces.

In psychological terms the act of “freezing” in the face of anxiety or danger is known as tonic immobility. It is a natural state of paralysis that animals enter, in most cases when presented with a threat. Though often proven beneficial in the natural environment, in the world of business, where time can be a costly enemy, this in-action can have grave consequences.

A quick calculation can show you the cost of a one month delay in reacting to a downturn in the economy. Let’s assume that market forces drove you to the difficult conclusion to reduce your workforce by ten employees. If these employees were making an average base salary of $60,000, then a one month delay in making this decision would cost you roughly $150,000. Two months, $300,000 in cash.

So, what is a business owner to do when faced with an unknown horizon. I have found from working with numerous companies that the unknown is really not that big of a mystery. The toughest task is usually finding the time for you and your leadership team to get away from the day-to-day chaos and really think about this. A facilitator may be helpful here as they are equipped with a wealth of information gathering and processing tools and can keep you focused on the task at hand. The goal is to identify the most likely scenarios you may be facing. Most, who complete this exercise, end up with a “good” scenario and then a “worst case” scenario. The rest are just variations in between.

The way to prepare for this exercise is to talk with others - your customers, suppliers, or clients and see what they think about the future. But try to be as specific as you can. Ask leading questions that will garner answers you can work with. It is one thing to hear from you customer that they are forecasting fewer sales next year. It is significantly more helpful to learn they are forecasting a 30% reduction in sales. Also, read your industry magazines and see what the editors are saying about the horizon. You’ll be amazed at what you can learn from all of these sources.

By writing these different scenarios down you will have taken the first step in establishing control over your company’s destiny by eliminating some of the mystery about the future. But writing this down is not enough. Creating a strategic plan for each scenario will provide you additional piece of mind - a script for each play. Defining the “indicators” that will help you judge which scenario is actually occurring and then watching for these signs will also further empower you.

Playing possum may work in the wild kingdom. In a good economy this in-action may result in your missing a business opportunity or two. But tonic immobility in a demanding and challenging economy, where every bad decision has exponential consequences, can be catastrophic.

About the author: Mike Gomez is the President of Allegro Consulting, an Atlanta-based business growth specialty firm. Allegro provides operating advice to businesses and organizations on a wide range of management issues that effect growth, such as strategic and organizational planning, marketing, sales and business process improvement. www.AllegroConsultant.com

Auburn Football - A "Change" Lesson for Business Owners

2008-10-23T11:54:00.011-04:00

“Life will teach you the lessons, it is up to you to learn them.”

A lesson about implementing transformational “change” in your organization.

Two weeks ago Auburn’s head football coach (CEO) Tommy Tuberville fired his offensive coordinator (VP)Tony Franklin in a dramatic mid-season move most will argue was done to save his own job. The firing followed what could only be described as a dismal year for Auburn football where they started the season ranked 9th in the nation and after losses to LSU, Vanderbilt and Arkansas no longer show up in the polls.

For those who don’t follow Auburn football it is important to know that historically they have run a conservative offense relying heavily on running up the middle and the use of the option. The CEO (Head Coach) felt this offense hasn’t been producing the results needed to achieve the goal his Board of Directors (Auburn Trustees) or shareholders (fans) expect - a national title. As a result, the CEO made the bold decision to adopt an entirely new offensive strategy called “the Spread”. Considered by most to be a very dynamic and complex - no huddle/shotgun - offense this style is a vast departure from anything the Auburn “company” has done before.

Like any good CEO introducing “change”, Tommy Tuberville researched and hired one of the guru’s of “the Spread” offense, Tony Franklin, and named him his new Offensive Coordinator (Vice President). He would not let Tony Franklin hire his own assistance but was told instead to use existing assistants - loyal to the CEO.

So what went wrong?

An insightful radio interview with Tony Franklin revealed classic mistakes made by the CEO in implementing change in his organization. The VP stated there was little communication between him and the CEO after he was hired. There was no social contact whatsoever. The VP also stated there was little if any attempt by the CEO’s assistant (long standing employees and managers) to befriend him let alone embrace the new guy. Though the CEO would speak publicly of his support and commitment to this new offense, even when things were not going well, the interview left one with the distinct impression he did little else in the way of actions to make this transformation successful. And on game days, the CEO would not hesitate to make public (over the headphones) critical observations of his new VP’s play calling.

Let’s explore how the CEO’s action or lack thereof undermined and in fact directly contributed towards the failure of this transformation. First, he believed that simply communicating his intention to change was all that was necessary to have his employees and leaders embrace the change. What he failed to understand is from an employees perspective, the kind of communication that impacts behavior is 10 percent “traditional” vehicles (speeches, email, etc...), 45 percent organizational structure (whatever punishes or rewards) and 45 percent management behavior. The last 45 percent includes “off the record remarks”, and daily activities. In the words of Sue Swenson, CEO of Cricket Communications, “What you do in the hallway is more powerful than any thing you say in the meeting room.”

Secondly, he mistakenly believed that you can manage a transformation strategy in the same manner as you would an incremental changes and past success will assure future success with this venture. Incremental change - continuous improvement - is linear, predictable and logical. Transformational change, on the other hand, is a redefinition of who we are and what we do. It is often unpredictable (responding to unforeseen circumstances, challenges and opportunities), and illogical (demanding people and organizations change when they are the most successful). Most importantly, past success is not a valid indicator of future success. In fact, past success may be the greatest obstacle.

In closing, organizations don’t change. People do - or they don’t. If they don’t trust leadership, don’t share the organization’s vision, don’t buy into the reason for change, and aren’t included in the planning - there will be no successful change - regardless of how brilliant the strategy.

Tony Franklin was noble for accepting responsible for the failure - however, those who know about implementing significant change in an organization recognize this failure was caused by the tone and manner in which the CEO, Tommy Tuberville, improperly introduced, embraced and supported the change.

P.S. Tommy Tuberville was fired at the end of the season after a dismal 5-7 record. The new coach, Gene Chizik, reintroduced "the Spread" offense and ended his first year with a respectable 8-5 record and a perfect 14-0 season and National Championship title in his second year.

* Italicized text taken from The Biggest Mistakes in Managing Change by Carol Kinsey Goman, Ph.D.

More information can be found at my
website: AllegroConsultant.com

Have a great day.

About the author: Mike Gomez is the President of Allegro Consulting, an Atlanta-based business growth specialty firm. Allegro provides operating advice to businesses and organizations on a wide range of management issues that effect growth, such as strategic and organizational planning, marketing, sales and business process improvement. www.AllegroConsultant.com

Strategic Planning - Ugh! Is it REALLY Necessary?

2008-10-09T14:59:00.005-04:00

The words Strategic Plan makes most business owners cringe. They conjure up images of hours upon hours of work and pages of writing. School all over again. But they know in their gut they should have one. The fact is the vast majority of small and medium businesses don’t. It’s not too surprising then that an equal number of small and medium businesses fail.

Ok, I’ll admit that was a cheap shot designed to get your attention.

Here’s an interesting fact, according to bankruptcy lawyers, the top three reasons companies fail are: (3) they are undercapitalized, (2) they fail to adapt to a changing market, and (1) the management team was in complete denial. All of these issues would be addressed in a comprehensive Strategic Plan.

I bet you are saying to yourself, “I haven’t failed, in fact my company is growing and I don’t have a Strategic Plan.” But at what cost? How many different directions did you have to go before you found a path that worked? They say not having a Strategic Plan is like being on a sailboat in the ocean without a rudder. Yes, the winds of the marketplace will blow you somewhere. But is it where you wanted to be and how much capital and time did it take you to get there?

This still doesn’t apply to you?

Where do you see your business in three years? Have your management team/employees bought into this vision?

Who are your competitors and what are they planning?

Properly done, a sound strategic plan will address these issues and provide you with a common framework for decision making in the organization. It will also prove to be an invaluable resource for making personnel decisions, allocating resources and capital, creating partner alliances, and building a strong organizational chart. But more importantly it will give you peace of mind - allowing you to sleep better knowing you have a documented plan in place for the most important part of your life - other than your family.

A well written Strategic Plan should fit on just one page. Yes, I said one page. Not a volume. After all, if you won’t refer to it periodically and your team can’t grasp it because it is too cumbersome then it is of no use.

Ideally, the process of building a Strategic Plan should involve a trusted adviser from outside your company to bring both a different perspective as well as challenge your perceptions of your company’s strengths and weaknesses and that of your competitors. I remind you again of the number one reason for failure - “the management team was in complete denial.”

Don’t have the time? A sound strategic plan for a small to medium business can be developed in one workday. The peace of mind alone is worth that much of your time. There are folks out there that can help. Seek them out. The future of your company is too important not to.

More information can be found at my
website: AllegroConsultant.com

Have a great day.

About the author: Mike Gomez is the President of Allegro Consulting, an Atlanta-based business growth specialty firm. Allegro provides operating advice to businesses and organizations on a wide range of management issues that effect growth, such as strategic and organizational planning, marketing, sales and business process improvement. www.AllegroConsultant.com

Leadership - Outsourcing Layoffs is a Cop-out!

2008-09-09T14:31:00.004-04:00

I was told the other day that large corporations have begun to use outside firms (full of behavior scientist) to decide who specifically will get laid off in a downsizing initiative. This absolutely floored me. Leaders (supervisors, managers, directors, vice presidents) get selected and paid for ONE primary purpose. That is - to lead PEOPLE.

Apparently, the definition of what it exactly means to "lead people" is being further lost in corporate America. Mid-sized business owners be aware. Don't let this happen to your company.

As a refresher, let me share what I believe it means to "lead people".

A leader (1) inspires, and motivates their people to achieve a goal or objective they (2) have communicated. They (3) set expectations and (4) insure that proper resources are there to get the job done. They (5) influence hiring decisions based on written qualifications and performance standards. They (6) use the strength of their position as well as their influencing skills to break down barriers to success. Most importantly, they (7) evaluate their people against job standards and previously set expectations and in doing so (8) reward strong performances and coach when needed. When coaching fails, leaders (9) take action by firing the individual from that position.

To suggest it is better for a company to employ an outside firm for steps 7, 8, and 9 to me is unconscionable. It undermines the very people who are suppose to be looked up to to lead and guide the growth of a company by constantly making these tough decisions. It is also a cop-out - an expensive way of deflecting responsibility to some outside third party. I wonder if corporations who employ these outside firms considered reducing the salary and compensation of the leadership - given that they have just relieved them of one third (3 of 9) of their responsibilities?

Probably not.

More information can be found at my
website: AllegroConsultant.com

Have a great day.

About the author: Mike Gomez is the President of Allegro Consulting, an Atlanta-based business growth specialty firm. Allegro provides operating advice to businesses and organizations on a wide range of management issues that effect growth, such as strategic and organizational planning, marketing, sales and business process improvement. www.AllegroConsultant.com

How to Grow Your Business in a Challenging Economy

2008-08-26T17:20:00.005-04:00

I attended a seminar with this title - curious as to what the speaker would say here that is any different than how one advises a business owner on growing a business in a "normal" economy (if there is such a thing). Well, as it turned out the seminar was more of a sales pitch for a couple of company's services, and as such, a complete waste of my time. I should have known this - by the title alone.

The fact of the matter is the economy has no bearing whatsoever on the processes used to consistently grow a company. It may affect the strength of the growth but not "how" growth is achieved. A challenging economy will also magnify the impact of not following fundamental business processes when planning for growth. Incorrectly assessing your company's strengths and weaknesses or the opportunities and threats in a good economy can hurt you - but in a tougher setting can bring you down to your knees. That is why it is always wise to have someone challenge your assumptions and make certain you don't drink your own bathwater when creating your strategy for growth.

Good economy or bad the fundamentals of achieving growth remain the same. It starts with a sound plan.

Does your company have a written strategic plan? My informal poll says the answer is most likely "no". Ugh!

More on this topic later.

More information can be found at my
website: AllegroConsultant.com

Have a great day.

Welcome - Straight talk

2008-08-12T12:40:00.011-04:00

Hi all.

Welcome to my blog on issues relevant to growing your business. This is a "straight-talk" site geared towards mid-sized ($3 - $100 million in revenue) service or manufacturing business owners as well as not-for-profit leaders about growth.

As a consultant I don't get paid to tell you how wonderful you are - on the contrary, my job involves listening and observing and then providing frank advise about the changes necessary to help you achieve realistic and aggressive growth goals. My company brochure asks the question: "Are you serious about growth? Really serious?" I ask this question because it takes more than lip service, passion, and a strong work ethic to grow a business. Those companies who consistently grow year after year do so with good planning and flawless execution. I plan to share my views about the particular traits of well run and high growth businesses. As you read these articles I ask you to compare these traits with your company or organization. How do you compare?

I hope you find this material interesting, educational - but most importantly, worth your time. More information can be found at my
website: AllegroConsultant.com

Have a great day.