During my corporate career there was a trend associated to me, or in other words I was well know as the person to start up new divisions or operations, establish them and then after approximately two years or so move onto the next challenge. A trend many of my colleagues failed to see was that I also spent considerable time turning around operations that had been established for 5 years or more and were now in a downward spiral, or simply plagued with operational and people issues. In fact on a couple of occasions I went back to operations I had helped start. The root cause was always the same; Complacency. Complacency is the biggest danger to established businesses, large or small. Let me emphasise it is rarely due to the enthusiasm or energy form owners or managers, it is usually due to loosing focus on what's important and intrinisc acceptance the norm. In fact most business owners or management teams know what to do, and how to do it, but fail to act on their knowledge because they are so focused on fire fighting the blame culture that has developed or they have not put the relevant Key Performance Indicators in place to let them know how the company is actually performing; then panic and react usually is the wrong way.
Complacency Test:
1. Do you concentrate on financial and other Key Performance Indicators (KPI's) that will help you grow profits, which are 'NOT' the amount of customers you have or your turnover or the amount of profit you make; these are result indicators not performance indicators. Or perhaps you only look at KPI's that portray the company in a favourable light, and ignore others.
2. Is there a culture within the business that lives its purpose and the company values in pursuit of the common vision?
3. Does the company test its performance against the best competitors in its industry and outside: and against its own previous best results?
4. Is everyone in the business held accountable for their defined responsibilities by their managers or supervisors and do they take ownership for both their own performance and that of the total business?
5. Are targets expressed in soft verbal form or in hard numbers or requirements which directly affect performance, goals and achieving the company vision?
6. Is there an external party 100% committed to your business and your personal success that will tell you as it is; the hard truth and question your decision making and strategies from an outsiders' perspective?
As the saying goes, if you do what you have always done, you'll get what you have always got. Always challenge the norm and encourage your team to always do the same...
Here are my top tips and challenges the remainder of the year ahead... why not challenge yourself and your team with them:
· What are the key seats on your bus and have you the right people sitting in the right seats on your bus? Don't settle for less than 100% confidence that you have...
- What are the 10 things you need to stop doing and the ten things you need to start doing? Write them down now...
- Build a Personal Council of advisors, mentors or coaches and use them...
- Determine the % Questions you use in business situations to the % Telling Statements you use and at least double it!
- Take at least 10mins every working day of Time to think whilst at work.. Quiet undisturbed time and turn your challenges over to your subconscious...
- In the morning and/or at night as your Beta brain wave patterns slow down, find time to meditate, and use visual-emotive and affirmation daily rituals...
- Clarify your BHAG and communicate the vision for your business to all Stakeholders...
- Live your enduring Core Values and Purpose; Culture...
- Set ambitious goals... nothing less than world-class!
- Fully focus on what you master better than anyone else... no distractions!
- Expand regionally/internationally vs. into an unknown business...
- Innovate continuously in small steps... to gain and sustain market leadership
- Stay Close to your customers... more important than general marketing...
- Pay attention to your clear competitive advantage, define it and uses it... A distinct Unique Selling Proposition and Brand Promise...
- Hire on culture and then talent... and continuously educate/train/coach them...
- Avoid turnover of your top talent at all costs...
- Lead authoritarian in principles and flexible in details and operations...Loose Tight Culture
- Rate of change... Take one step every day in the direction of your goals and vision...
- Know your numbers; Accounting, Finance and Business Financing
- In-house (the Core) vs. Out-source (Everything)
- Effectiveness and Efficiency... Systemise the Routine and Humanise the Exception...
- Leverage... Always put systems solutions in place to overcome any issue...
- Planning, Planning, Planning, Execution...Testing and Measuring... Planning Long-term, Annual, Quarterly, Monthly, Weekly, Daily...
- Extraordinary Customer Experience... Innovation/Creativity/ Marketing... Customer Experience is THEE differentiator...
- Leadership... Become the person you need to become... The systems run your company, your people run your systems, and you lead your people toward your vision...
- Employee Performance/Contribution... Culture of Growth/Accountability/Execution... Learning/Training/Growing/Thinking Organizations...
- Manage Total Cash Conversion Cycles.... Assets > Sales > Profits > Cash
