Category: business

  • How to Hire Well: The Owner Principle

    I have always been an owner even when I worked for someone else. Recently I have thought about my employment history as well as those who have been my colleges and employees over the years and have come to the conclusion people fall in two main categories: owners and workers. Before you dismiss the post, let me explain. This is not a legal distinction, but a psychological one. Interestingly, some business owners behave like managers or workers doing what’s required of them and completely disconnecting from their jobs once the clock hits 5 p.m. Some hirelings whose heart and passion for their performance cause them operate more like owners. The more owners you have in your organization, the more successful you’ll be, I’m convinced.

    Here’s a list of owner characteristics:

    • Owners care about the entire team and not just themselves. They know that no one is successful alone.
    • Owners understand that a missed deadline is serious business. After all, it’s their word on the line.
    • Owners don’t watch the clock. They watch their to do list.
    • Owners are more driven by their work ethic than by their boss’ expectations. Owners often go beyond the call of duty to make sure a job is done right.
    • Owners see their work as an extension of themselves and not just a job to be endured.
    • Owners are motivated by the satisfaction of a job well done and not just by financial gain.
    • Owners cannot be micromanaged. They can bring more to the table on their own if you let them grow.

    I’m sure I’ve missed something on this list. What else can you see that owners do that employees don’t?

  • Why You Need a Culture of Discipline

    Unless your organization has a culture of discipline, it cannot grow beyond where it is right now. I will be even bolder and say that it might not endure.  Honesty in measuring goals is the difference between sustained growth and obsolescence. While we might find a lot of good things our business, church, or not for profit is doing, we must be honest and establish success or failure on the basis of our stated goals.

    culture of discipline

    While we can celebrate some of our successes with press releases, board presentations, and beautiful annual reports, we should be ruthless about evaluating our accomplishments based on our set goals. A smart leader should not ask “what have we accomplished in the past year?” The more important and relevant question should be, “have we accomplished what we have set out to do?”

    The first question while makes us feel good and helps build temporary morale, it often leads to spin and a false sense of progress.  I learned that lesson from Disney several years ago during my training at the Disney Institute.  One of EPCOT’s most popular events was “Barbie Day.” The park’s attendance soared with little girls wanting to see their beloved doll in live action form.  One day someone asked a tough but important question, “how does Barbie Day help us with our goal of growing the Disney brand?” After all, Mattel owns Barbie and not Disney. By EPCOT’s stated goals, Barbie day was a total failure. They got more people in, but they gave their competitor a boost inside Disney’s own property.  While profitable, the day was not good for the brand.

    A culture of discipline is hard to create. As an optimist, I attest to that. I want to celebrate what we are doing that’s good and our wins, no matter how small. However, I must balance that with the reality of our stated, measurable goals. If our annual goal is to increase our bottom line by 20% over last year, then I must not confuse a 30% growth in gross income with 5% net profit as a victory.  Yes, we made more money than the year before, yes we were profitable, yes we have more projects coming in, but we failed to reach our goal.

    Unless we create a culture of discipline that measures and holds everyone accountable for our stated results, we will never grow beyond the status quo.

    How is success measured and rewarded in your organization?

  • Why Your Organization’s First Impression Matters

    First impressions matter, whether you like it or not. They matter not only on a personal level but also on a business and even more so when it comes to a church. Our first impression of a business, store or venue sets our expectations for the type of product or experience we perceive we are about to get. The implications of your first impression are huge.

    The A Group offices
    The A Group Offices

     Starting at a deficit. If you don’t “present well” someone’s first encounter with your organization, then you will automatically go into a “deficit” standing. Starting here means you have to work harder to overcome the initial perception of your product, whether it be consumer goods, services or an experience. Basically you’re saying, “we’re better than what you think we are” and then you’ll need to spend time and equity to get your audience to see in a better light. Unfortunately, you often do not get that chance. People quickly pass judgment on you and move on.

    Starting at a surplus. Your first impression is great and your new client, donor or member believes what you have to offer is the best thing since slice bread.  This deal is yours to screw up. When your organization starts at a surplus, it has a build in momentum with your audience that it can easily overcome bumps in the road and forge a successful relationship.

    Interestingly, the difference between starting at a deficit or surplus is most of the time the most insignificant of details. Things like signage, colors, décor, lighting, while completely unrelated to your product, shift people’s thinking either toward surplus or deficit. Much like the way one dresses and carries himself has a way of positioning his perceived professionalism and competence level, so does some of the more utilitarian items such as your lobby chairs or your store window. Sadly, while perception might not be reality, it does matter.

    Think about your organization. How well is it managing its first impression? Are you starting at a surplus or deficit?

  • Are you Adapting to the Change Accelerators?

    Change is inevitable. Everything and everyone we know is a constant state of flux. As much as we seek stability in the comfort of a routine, we soon have to come to the realization that the world around us is changing at an increasingly rapid pace. There are three accelerators that drive most of change today. Here’s how people, technology and information are accelerating change.

    Accelerator of change

    People

    • The world population is currently estimated to be 6.915128 billion by the United States Census Bureau.[1]
    • The world population has experienced continuous growth since the end of the Bubonic Plague around the years 1348-1350.[2]
    • Current projections show a continued increase of population with the population expected to reach between 7.5 and 10.5 billion in the next decade.

    Technology

    • Radio 38 years to reach 50M
    • TV 13 years to reach 50M
    • Internet 4 years to reach 50M
    • Facebook – 9 months to reach 100M

    Information – Internet

    • Over the past 10 years the number of users has gone from 360M to 1.9B
    • 28% of the world is online.
    • 444.8% growth.
    • It’s projected that by 2020 the whole world will have access to the internet.

    The implications are many. But for me, there’s a simple lesson: If my business, ministry, organization is to continue to be relevant, I must adapt, re-tool, re-engineer at the speed of change around me or face irrelevance. It means that decisions have to be made quickly and that windows of opportunity are getting shorter.

    How have these accelerators changed the dynamics of your business or ministry?

  • Creating an Internal Culture in Your Organization

    One of the few things I do as a leader that I cannot delegate is to help create The A Group’s  internal culture. That’s one of the most important jobs in any organization that often goes ignored because we tend to equate our mission with our culture. Mission tells us what we should be doing, but our culture provides the pathway to how we get there. As The A Group has grown from a couple of people 10 years ago into almost 30 people strong, I have tried to be deliberate in creating an internal culture that aligns with our mission. Our culture is framed by a set of value statements that I repeat ad nauseam.

    internal organizational values

    We value innovation. We are a solution-based company. Innovation is the heart of what we do from marketing best practices, communication trends to technology new frontiers. One of the reasons we grew during a down economy is because we were able to spot trends and innovate to meet the new challenges.

    We value service. We serve our clients. We exist to enable and resource our clients to grow and thrive and, hopefully, even anticipate their needs.

    We value collaboration. If you’re not a team player, you will not last long with us. We believe that the collective wisdom and experience of the entire team, and that of our clients’, will produce a much better product. People are encouraged to fight for their ideas, to push back on strategies but to ultimately decide as a team how to make something good, better.  Even though we have two different divisions working together, marketing and technology, both teams come together in a collaborative environment. I wouldn’t have it any other way.

    We value risk. We are not afraid to fail. As I leader, I’m more afraid of not trying something new and missing the boat on a game-changing strategy or technology, than playing it safe. Often our developers come up with new ideas or features for our online and mobile apps. Even if we don’t deploy them, we green light most ideas.

    We value initiative. We tell our teams what we want to accomplish but not how to get there. I have found that if I hire the right people, then I don’t need to come up with the how. If I’m telling my team how to do their jobs, then I’ve failed the organization by hiring poorly.

    What’s the best or worst internal culture you have been a part of?

     

  • 4 Gauges Every Entrepreneur Should Monitor

    As a business owner, I’m never “off.” The mind of an entrepreneur is always working on opportunities, challenges and next steps. Of all the many thoughts that go through my mind on any given time, there are 4 areas of business that I’m constantly monitoring because I have learned that if they begin to deteriorate, so does my business.

    Entreprenuers business thoughts gauges ministry

    The Brand. That’s the promise every company makes to those it serves. Whether you sell widgets, services or an experience, your brand promise needs to be monitored. The A Group is a high-end marketing, technology and branding firm. Everything we do is based on strategy and best practices. I’m always monitoring the output of both products as well as services. Are we delivering on our promises?

    The Model. Is the current business structure a sustainable one? You’d be surprised by the number of busy businesses that end up failing. I remember talking with an young entrepreneur who was not charging enough per hour to cover his overhead even with a full schedule. Make sure you have a good grasp on the real costs of doing business. If you’re not on top of expenses, income and cash flow, you won’t make it. Make sure you are always asking the question: “is this a sustainable model?” If your answer is no. Change it fast.

    The Team. Do you have the right people on the bus and on the right seats? While to some this is a nice take away from CollinsGood to Great, to me, monitoring the Team gauge means life or death. I cannot, cannot emphasize how critical having the right people working together is. I wrote about our hiring processes here, but beyond managing output, monitoring morale is even more important. You cannot achieve greatness with the wrong team. I’m convinced of that.

    The Credit. I must confess I had to grow past my own insecurities on this one. I used to think I had to be the smartest person in my business and get the credit for its success. Wrong. Unless you can get past it, your business will never reach its potential. I work with some of the brightest, most capable people I know. Their skill set compliment mine and I’m glad I don’t have to do their jobs, because, frankly, I cannot. Credit comes in the form of  praise, promotions, bonuses and opportunities. I have learned that the more I give away, the more I get back. It’s true both on a personal as well as business level.

    In your business or work, which area do you see the greatest need?

  • Is Your Greatest Idea Still on a Napkin?

    “The greatest ideas are still left on napkins,” said a friend over lunch. These words stuck with me like some ugly unwelcome platitude. The more I tried to ignore them, the more they nagged at me. My ultimate fear is to go to my grave with my greatest idea still left on a napkin. What holds us back from pursuing our dreams? Here’s where I have landed on pursuing new business or ministry ideas.

    Is Your Greatest Idea still on a Napkin

    I don’t like risk, but I’m willing to take calculated ones. For someone who has started several business over the years,  (about 5 to date), I still struggle with the idea of something not working out. The fear of failure is real when you put a lot on the line for your dream.  But I also know that in order for an idea to flourish and become a reality, I have to step out of my comfort zone and make it happen.

    Before I start a new venture, I always have an inner conversation that goes like this: “How much money and time am I willing to invest in this idea?   If it fails, what’s my worst case scenario? Can I live with that?” No one starts a business, a partnership, a church or ministry with the idea that it will fail.   Entrepreneurs are, by  nature, optimists but even the most positive person should account for the unknowns he or she cannot control. Sometimes your failed business has nothing to do with you or your performance. Recently a good friend found out his business partner had stolen hundreds of thousands of dollars from their business, putting it in financial jeopardy. We shouldn’t plan  for our best friend to steal from us, but we all should have an exit strategy in case he does.

    I will not sacrifice my friends on the altar of money. No all of my ventures have performed the way I envisioned them. Some of them were partnerships with good friends. No, not the kind who would steal money from me, but real friends. Years ago I settled the money question by watching how a friend did it poorly. I will not lose a life-long friendship over money. If I’m not willing to lose the money over the relationship, I do not go forward with it.   I’m thankful I’ve settled that question.  Life is too short. Relationships matter more than money. Trust me on this one.

    There’s more I want to talk about this, but I’ll leave it for another post.

    It’s your turn. What are you doing with your greatest idea?

  • Target Text Gift Card: A Fail Experience

    It is a great concept: send a gift card to someone using text messaging. That’s exactly what I wanted. I had a friend who was at a nearby Target, and wanted to send him a birthday gift certificate. As I consumer I was thrilled to be able to do something as cool as sending my friend an instant gift card and have him get it while on the phone with me. It didn’t work.

    Target mobile Gift card fail

    Target even created an iPhone app that allows one to send a text or email version of a gift card to a mobile-phone user. But what the company failed to tell me is that the transaction usually takes 24 hours to process! Yes, 24 hours. There’s nothing instant about that. I didn’t find that out until several hours and three different customer service calls to India later. In my mind there was nothing to process! You have my money, you have the recipient’s phone or email address, then send the darn email out. Now. Not 24 hours from now.

    Great idea + poor implementation = fail. Marketing did its job promoting the product but IT (information technology) failed to deliver on it. After all, we can ship a package around the world in 24 hours. It’s ridiculous to expect that a text or email certificate needs the same amount of time to process.

    I tried BestBuy‘s gift card option, and in less than 1 hour, my friend received his email confirmation.

    Great ideas usually die on the crucible of bad implementation. Think about the great looking website that is slow and poorly organized, or a book that has a strong concept but that is tedious to get through. They are failed good ideas.

    What about your product? Whether is physical product, an experience, or a promise. Are you delivering on the promises or do you need to tweak your system so what was a good idea will not fail because of implementation?

     

  • Are You Asking the Important Questions?

    Back in 1988 Eastman Kodak had a surplus of 1.4 billion dollars the equivalent of nearly 2.5 billion in today’s dollars and 11 profitable business units. This year Kodak is set to lose between 400 and 600 million dollars, its 12 losing quarter in the past 15 quarters according to an article on USA Today. The digital revolution has hit the once-global giant hard. Its stock peak at nearly $100 a share and now is considered junk, worth less than a dollar per share. Interestingly, Kodak researches invented the digital camera.

    Kodak film irrelevance digital revolution bankrupcy

    According to the article, the film business was just too lucrative to do shift gears into the digital opportunity with its much smaller margins. It didn’t happen overnight but the day Eastman Kodak decided to ignore the trend it help to start for the sake of their most profitable product, it was the day the company began to die. Today Kodak is fighting for its life and some analysts do not believe it can survive.

    There’s a lesson here for all of us, no matter what we do for a living. Whether we work in the market place or we lead a church or not for profit, the day we ignore what’s best for the people we serve in order to preserve our best-selling, most profitable product is the day we set our organization into the death spiral that will land it into the state of irrelevance, bankruptcy or both.

    The very company that ushered the digital revolution is now a victim of it. Think about it. How many great businesses and churches that were once innovators that are now gone or ineffective. I believe they got enamored with their own product, and their ability to improve upon it, that they failed to ask the important questions: is our product still relevant? Is this what people really need? What’s the future look like? Those are easy questions to answer when you have 2.5 billion dollars in the bank. They are impossible to answer when you’re fighting for you life.

    Often my company is asked to help church and organizations that are fighting for their lives. Sometimes we get to enjoy the visionary leaders who know that while things are well, they need to think of a different future and start planning accordingly. They want to answer to important questions during the good times so they can still be successful 10, 20 years from now and seize not only the moment, but also the future.

    Is your organization asking the important questions? Are you working hard to sell a great product, or are you working hard to solve a current problem?

     

  • You Cannot Tweak Your Way into Effectiveness

    I have been guilty of trying to tweak something that needed a major overhaul. After a lot of effort and resources making minor adjustments here and there, I usually end up with slightly more effective and yet still unsatisfactory results. Yes there might be some change, even some forward progress, but not enough to make a difference.

    minor tweak and adjustment

    I don’t know your circumstances, but I’m almost certain that there’s an area of your life, your business, or ministry that is in desperate need of a complete overhaul right now and all you are doing are minor tweaks. I understand the fear of the disruption a bold course of action might cause. I get the fact that the consequences of a difficult move might be more than you have bargain for. They usually are.

    I also know that when we fail to do the difficult thing, we fail, period. If I have learned anything in life is that “tweaking” something that’s not working is an expensive game that can costs us our health, our relationships and even our business. It’s choosing the appearance of leadership instead of paying the price true leadership. But with it comes resolution, forward momentum, a new lease on life, a different future.

    What ares of your life are you tweaking into failure? What needs an overhaul?