Category Archives: Business Planning

What If… You lost a major customer?

What If… You lost a major customer?

Who can You talk with?

Will You have to cut Your work force?

Will the bank tell You to move Your loan? or

What do You do if You lose a key employee due to injury, leaving you or death?

Difficult questions, a support group is critical to give You. They give You emotional support, ideas, and potential resources to help.

One member lost a major customer and had to cut back his business. He did not want to cut his work force, and the Peer Board told he must do this to survive. The goal was to save the company. The actions he had to take were emotionally difficult, but necessary.

The board discussed how to go about the cuts, and the communication to his employees. Today the company is back, and he has been able to bring back many of his past employees.

I am sure you know a Peer Advisory Board is a monthly meeting of non-competitive business owners, Presidents, CEO and C level Executives with an experienced facilitator who keeps the discussion on track and drives for conclusions.

At each meeting a topic is presented start the meeting, and to get the discussion following. Most Importantly, each participant has an opportunity to bring their issues to the table for peer feed back. In essence, a think tank with action and accountability.

PRO, President’s has created and facilitated business owners peer advisory boards for over 25 years. Technology now makes it possible for business owners to participate in On Line Peer Advisory Boards with an experienced facilitator, mentor, and tormentor. This means you can participate anywhere and on any wifi comparable device.

To give you an idea CLICK Here for a digital copy of the PRO Small Business Toolbook. 83 pages of articles, worksheets on almost every small business issue. It will get your brain thinking! This is an example of peer advisory insight

As facilitator, in my past life, I have gone through good times and bad, and understand the trauma, and the necessary actions. One time my company lost 40 percent of our business due to a government change in one weekend. This was survival time, and I had the support to help me through this period. With the insight and support I received the company gained back those sales plus more. It is easier in good times than bad, and having Your Peer Board makes all the time easier.

Now you can participate in an On Line Peer Advisory board anywhere, and on any device. CLICK Here for the Small Business Toolbook and to learn more about ON LINE Peer Advisory Boards.

What If… You could Avoid a Bad Decision?

What If… You could Avoid a Bad Decision?

Who do you discuss your business thoughts and decisions? A PRO, Peer Advisory Member was asking his board about a potential business investment decision. The board did not feel this was a good investment, and also gave the person thoughts to improve the probability of success, if he made the investment.

A new member stated, “I wish I was a member before I made a major investment that did not work out. I needed someone to question me before I jumped.” Do you have someone to question You? Or, bring thoughts how You can increase the probability of Your success?

I am sure you know a Peer Advisory Board is a monthly meeting of non-competitive business owners, Presidents, CEO and C level Executives with an experienced facilitator who keeps the discussion on track and drives for conclusions. At each meeting a topic is presented start the meeting, and to get the discussion following. Most Importantly, each participant has an opportunity to bring their issues to the table for peer feed back. In essence, a think tank with action and accountability.

PRO, President’s has created and facilitated business owners peer advisory boards for over 25 years. Technology now makes it possible for business owners to participate in On Line Peer Advisory Boards with an experienced facilitator, mentor, and tormentor. This means you can participate anywhere and on any wifi comparable device.

To give you an idea CLICK Here for a digital copy of the PRO Small Business Toolbook. 83 pages of articles, worksheets on almost every small business issue. It will get your brain thinking! This is an example of peer advisory insight

It may take courage to bring ideas to an unbiased board, but the people who do this achieve better results. They know they don’t know it all, and are willing to learn to do better. They realize “That All of Us Are Smarter Than One of Us.”

Now you can participate in an On Line Peer Advisory board anywhere, and on any device. CLICK Here for the Small Business Toolbook and to learn more about ON LINE Peer Advisory Boards.

What If… You made a Bad Hire?

What If… You made a Bad Hire?

Many small businesses do not know how to interview or hire. When a person leaves their business they look at hiring as taking them away from their business activity. But, this should be looked upon as an opportunity. Having good people is your business.

At PRO, Peer Advisory Boards we discuss the hiring process. When someone is making a hire what is the job description? What is the performance expectation, and how do you measure this? At the minimum, what interview questions and procedure will you follow,

Today’s hiring market is difficult due to very low unemployment. In the past you could interview several candidates, have several interviews, and then make the hire. You could hire slow. Today you must hire fast. This increases the probability of a bad hire.

To improve your odds of success, Peer Advisory Board members recommend you identify the habits or actions you should observe at the end of first week, 30 days and 90 days of work. Many positions you are cannot measure or expect performance and results in a short time, but you can measure and observe if they are doing the right things to be successful. If you make a bad hire You Must make a change quickly.

I am sure you know a Peer Advisory Board is a monthly meeting of non-competitive business owners, Presidents, CEO and C level Executives with an experienced facilitator who keeps the discussion on track and drives for conclusions. At each meeting a topic is presented start the meeting, and to get the discussion following. Most Importantly, each participant has an opportunity to bring their issues to the table for peer feed back. In essence, a think tank with action and accountability.

PRO, President’s has created and facilitated business owners peer advisory boards for over 25 years. Technology now makes it possible for business owners to participate in On Line Peer Advisory Boards with an experienced facilitator, mentor, and tormentor. This means you can participate anywhere and on any wifi comparable device.

To give you an idea CLICK Here for a digital copy of the PRO Small Business Toolbook. 83 pages of articles, worksheets on almost every small business issue. It will get your brain thinking! This is an example of peer advisory insight

One Peer Advisory Board member had made a hire of a sales person. This person was to make appointments and go out with the sales manager to observe and learn the sales format of the company. At the end of the first week no calls or contacts were made to obtain an appointment.

The company made an immediate change. This person interviewed very well, but did not have the personality or interest to make appointments. His Peer Board told him You must observe and measure action to know if the person needs training or must go.

Now you can participate in an On Line Peer Advisory board anywhere, and on any device. CLICK Here for the Small Business Toolbook and to learn more about ON LINE Peer Advisory Boards.

What If… You could motivate Your sales force?

What If… You could motivate Your sales force?

Compensation to your sales people is a critical issue. What is the best way to compensate for your product/service, distribution channel, or targeted customer? Should the compensation be salary, salary plus commission, draw plus commission or straight commission?

What motivation plan works best for your product/service sales force? This is a topic key executives discuss at Peer Advisory Boards. By learning from others what worked for them and how it relates to your company will move your revenues up. Is learning what motivates better than trial and error on compensation decisions?

I am sure you know a Peer Advisory Board is a monthly meeting of non-competitive business owners, Presidents, CEO and C level Executives with an experienced facilitator who keeps the discussion on track and drives for conclusions. At each meeting a topic is presented start the meeting, and to get the discussion following. Most Importantly, each participant has an opportunity to bring their issues to the table for peer feed back. In essence, a think tank with action and accountability.

PRO, President’s has created and facilitated business owners peer advisory boards for over 25 years. Technology now makes it possible for business owners to participate in On Line Peer Advisory Boards with an experienced facilitator, mentor, and tormentor.

To give you an idea CLICK Here for a digital copy of the PRO Small Business Toolbook. 83 pages of articles, worksheets on almost every small business issue. It will get your brain thinking! This is an example of peer advisory insight

One member brought a sales commission issue to the table at his peer advisory board meeting. He had a software products that was difficult to sell in, and he was paying a substantial commission for the Initial sale, and he also paid the same commission for repeat sales. He was concerned about the sales persons’ motivation since he was receiving a significant commission and was not working not producing in the following years.

He basically knew the answer, and needed support to make the decision. His peer advisory board told him to cut the commission on the repeat sales and for a limited time pay a higher commission on new sales to motivate the sales person in the right direction.

On follow up discussions with his peer board he reported the sales person was initially not happy about the cut on commission for the current sales. But most importantly, he was now obtaining new customers, and making more money than before. The salesman is now happy and performing. This is an example of what a peer advisory board can accomplish.

Now you can participate in an On Line Peer Advisory board anywhere, and on any device. CLICK Here for the Small Business Toolbook and to learn more about ON LINE Peer Advisory Boards.

What if… Your product or service is impacted by Tariffs?

What if, Your product or service is impacted by Tariffs?

Businesses are changing faster than ever due to Government Regulations, technology, global communications, and distribution, etc. Leaders need to get outside their business to gain insights, opportunities, and awareness of the world around them from other business owners. They need to Be Aware!

At a peer advisory meeting find out from others who are impacted by tariffs their strategy to cope and benefit. Are they raising prices, how much, when? Have they purchased commodity contracts to protect their costs? Do they have long term fixed price contacts? These are just a few of the issues a peer advisory board will discuss on tariff impact. The essence is all of us are smarter than one of us.

I am sure you know a Peer Advisory Board is a monthly meeting of non-competitive business owners, Presidents, CEO and C level Executives with an experienced facilitator who keeps the discussion on track and drives for conclusions. At each meeting a topic is presented start the meeting, and to get the discussion following. Most Importantly, each participant has an opportunity to bring their issues to the table for peer feed back. In essence, a think tank with action and accountability.

PRO, President’s has created and facilitated business owners peer advisory boards for over 25 years. Technology now makes it possible for business owners to participate in On Line Peer Advisory Boards with an experienced facilitator, mentor, and tormentor.

To give you an idea CLICK Here for a digital copy of the PRO Small Business Toolbook. 83 pages of articles, worksheets on almost every small business issue. It will get your brain thinking! This is an example of peer advisory insight

One member, an importer of stainless steel bars, has tariffs as a major issue. The peer advisory meeting was a strategy discussion of raising prices in increments to learn where there was price resistance.

This member has significant inventory, and therefore could create short-term profit on their inventory, and has to be aware of building inventory in the future in case tariffs were reduced and would take a price beating on tariff purchased inventory. Some times we are so close to the trees we don’t see the forest.

Now you can participate in an On Line Peer Advisory board anywhere, and on any device. CLICK Here for the Small Business Toolbook and to learn more about ON LINE Peer Advisory Boards.

The World To Come

The World to ComeThe World to Come

reviewed by Ray Silverstein

I would like to introduce an extremely interesting book, “The World To Come,” by Dara Horn. This is not a business book, but it made me think more seriously about what is “the world to come” is for business. The book deals with the concept of our individual futures. The next event in your life… the next door you open to an unknown circumstance…even birth and death. Each of us of has our own World To Come.

In the business environment, not everything is unknown. But many business owners do not want to examine or think about the world that will be coming upon them. It is evident that customer communication methods are changing rapidly, in some ways not to our liking. But if we want to experience and be around for The World To Come, we must adapt and change our thinking.

When I first entered the business world (I don’t want to say how long ago), the primary method of communication was a personal letter, followed by a personal phone call. A long distance call was something special, unique and expensive. A telegram was a sure way to get someone’s attention.

These methods don’t really carry any weight today. Many people now favor email. It is easier to make an email connection than a telephone connection. Depending on the age and generation of the communicator, even an email may be out of date, with text messaging or tweeting your communication method of choice.

The world is becoming smaller. It is far easier to learn about customers, suppliers, competitors, and people in general with Internet sites like LinkedIn, Facebook, Google+ and Twitter plus a host of others websites. When I talk to small business owners in the peer advisory boards I facilitate, some are moving forward into these new and interesting venues, but others are still living in the old world.

I believe we all have to move into The World To Come…even me. Nobody likes to change their habits, be forced to learn new skills, or be made to feel uncomfortable. I like to look upon moving forward as a new adventure. Think about the strategic concepts, the way these new technologies can enhance your business, life and experience. For example, my wife is even Skypeing with her grandchildren. What a treat! To be able to not only talk with but actually see friends, children, grandchildren, and business associates around the world. And the price is right…it’s free!

If you are not in the Chicago or Phoenix areas and would like to explore with me how you can position your business and benefit in The World To Come, visit PRO President’s Resource Organization  People say life is an adventure…come and explore with us!

Get the new Small Business Toolbook – 25+ years of Advisory Group Expertise

Avoiding Growing Pains

How to Avoid Organizational Growing Pains

By Ray Silverstein

When it comes to growing a business, is it possible to experience too much of a good thing? Yes, it is. And while you might think this would be a good problem to have, think again. Many times this can put you out of business.

Too-rapid growth is actually more dangerous to a business than no growth at all. While we tend to envy ‘overnight successes,’ research shows that growth exceeding 25% per year puts a business at risk of failure.

Just consider all the demands that an unexpected growth spurt would place on the various facets of your business:

Financial – Suddenly, you have big orders to fill, but not enough inventory to do so (or people-power if you’re in a service industry). Nor do you have the cash on hand to purchase what you need (or to hire who you need). Plus, getting credit is trickier these days (especially for service businesses that don’t have hard assets to offer as collateral). Purchase order financing is a possibility, but it is almost impossible to obtain and very expensive.

Personnel – Regardless of what you sell, you’ll need more workers to push your products or services out the door. But you don’t yet have the dollars needed to meet a rapidly-expanding payroll, not to mention the acquisition costs of bringing on new employees. Speaking of which, you’ll be so busy, you won’t have the time to make wise hires or train your newbies properly.

Morale – Because you’re short-staffed, your employees are constantly under the gun. Even dedicated workers can only give so much for so long before they start to burn out.

Workflow – If you don’t have adequate technology and processes in place when business explodes, what you do have will short circuit your ability to service or produce. Now you have a new fire to put out, and even less will get done.

The end result is: orders will go unfilled, and service will suffer. Customers will lose patience and walk. And remember, business that’s lost due to service issues is very hard to win back.

Picture a tiny, start-up restaurant that unexpectedly receives a great review from a trendy food critic. Suddenly, it needs five or six servers to wait on the nightly crowds, but it only has four on staff. Service plummets; waiting time skyrockets…and unless management makes some quick fixes, soon it will only need three.

Manage Potential Growing Pains

You may think this will never happen to your business, but it may be sneaking up on you, on a smaller scale. My point: keep a pulse on your activity and plan ahead. Know Thy Business. Build on your strengths, shore up your weaknesses, and attend to these key areas now:

Financial – Lay the groundwork for acquiring credit in advance. Develop a relationship with your banker. Build a good credit history. Study your numbers and get them to a healthy place.

Personnel – Always know who your next hires may be. Think of your workforce as a major/minor league system. If you’re continuously scouting for talent, you’ll be halfway there when it’s time to hire. Your minor league is a list of people you believe have the right attitude and skills to do the necessary work.

Morale – Nurture it always. Build good communication habits with your employees. And remember, a little personal appreciation goes a long way.

Workflow – No one wants to incur the expenses of upgrades until they’re absolutely needed. But every new system has learning curves to master and bugs to work out, so who can afford to wait until crunch time arrives?

Finally, learn to recognize the symptoms of growing pains. An easy way to get started: use my Growing Pains Diagnostic Test to conduct a DIY five-minute checkup. Just email Ray@propres.com and request a copy. Do something easy and healthy for your business today.

 

About the Author: Ray Silverstein is President of PRO, President’s Resource Organization, a network of entrepreneurial peer advisory groups in Phoenix and Chicago.

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Market Research Benefits

Will Market Research Benefit Your Small Business?

By Ray Silverstein

Wouldn’t you love to get inside your customer’s head and take a good look around? To see his or her wants and needs revealed in stark clarity? To view your products through his or her eyes, unclouded by your assumptions?

As entrepreneurs, it’s our responsibility to understand and anticipate our customers’ mindsets. It’s what keeps us in business and allows us to grow.

That is the essence of market research. Over the last 60 years, market research has evolved into a powerful marketing tool. But while big companies embrace it, many entrepreneurs tend to steer clear. Yet there are aspects of market research of great value to small businesses, if we’re open to them.

For this reason, my company, PRO, recently sponsored a workshop, “The Guerilla Approach to Knowing Your Customers.” Our presenter was Bob Kaden, a long-time market research expert and author of the Guerilla Market Research books. Bob gave us a lot to think about, some of which I’m sharing here.

Market Research in a Nutshell

In short, the objective of market research is to get as close to the customer as possible, so you can understand and influence their buying behaviors, maximizing your opportunities for success.

There are two types of market research: primary, which focuses on your particular business, and secondary, which focuses on information available in the public domain.

Every time you read a business publication, visit a competitor’s website, or search an industry topic online, you’re engaging in informal secondary research. You can learn about your market, industry, and competition this way, while staying up to speed on consumer trends. We should all be engaging in some secondary research daily.

Primary research is a different animal. It’s personalized and proprietary. It may take the form of focus groups, interviews, or surveys, but however you conduct it, you do so with a specific goal in mind, targeted to a specific type of customer: yours.

When Do You Conduct Primary Research?

The time to conduct in primary research is when you want to learn something specific about your market. Maybe you need clarity setting your product development strategy. Maybe you’re about to rebrand your company. The bottom line is, you have to be ready to take action as a result of what you learn, or the research isn’t worth doing.

In addition, you have to be open to whatever the results reveal. We all have pet theories. If you’re not willing to let them go—which isn’t always easy for entrepreneurs–now is not the time to invest in research.

How Do You Conduct Market Research on a Budget?

Big companies use big market research firms, but that’s not the only alternative. If you want to have a pro do the work for you, look for a one-person firm or perhaps a local professor. They’re more affordable.

And more small businesses are engaging in DYI market research. If you have the temperament, you can conduct your own focus groups or interviews. Or, you can use Survey Monkey (SurveyMonkey.com), or ask simple questions via social media outlets like Facebook and Twitter. But if you are going to do it yourself, take the time to learn how to do it right.

Maybe market research makes sense for you; maybe it doesn’t. The bottom line is, business is more competitive than ever, and we need to be open to new ideas. When you become aware of a tool that’s available, consider it objectively. Never say never, to market research or anything else.

Biography: Ray Silverstein is president of PRO, President’s Resource Organization, a network of entrepreneurial peer advisory groups in Phoenix and Chicago. His recent venture is 2 Small Biz Guys business radio show, specialized for emerging businesses, solopreneurs and those who want to achieve more. He is author of “The Best Secrets of Great Small Businesses,” and “The Small Business Survival Guide.” You can reach Ray at 1-800-818-0150 or ray@propres.com.

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Thinking Fast and Slow

Thinking, Fast And SloThinking Fastw
Daniel Kahneman

reviewed by Ray Silverstein

Daniel Kahneman won the 2002 Nobel Prize in Economic Sciences for his pioneering work on how human judgment sometimes defies logic or probability—and how even supposedly scientific decisions are influenced by human bias and irrational assumptions. This was alarming news to economists.

Kahneman spend decades of research digging deeply into the human brain and the often-flowed way in which we make decisions and arrive at conclusions supported not by objective fact but by subjective assumption.

The brain thought process switches between automatic response or kneejerk reaction, System 1, and System 2, which involves concentration and deliberation. Although System 2 believes itself to be where the action is, the automatic System 1 is the hero of the book, according to Kahneman.

He argues that overreliance on System 2 can result essentially in tunnel vision. System 1, however has a bias to believe and confirm and neglects ambiguity and suppresses doubt.
He also shows that “hindsight is 20/20” is more than just a cliché’ in revisiting past beliefs and opinions. People tend to paint a much more flattering picture of themselves

Research in the areas of risk aversion and prospect theory to learn more about the ways in which humans make decisions and weight risk. Research suggested that the negative often trumped the positive; that is, if presented with data that a 50 percent positive and 50 percent negative, the general tendency is for out brains to come away with an impression of “negative.” Even though the positive/negative factors are equally divided.

Similarly, people tend to overestimate the probability of unlikely occurrences. In a business setting, that may mean failing to take a smart risk because of an unlikely hypothetical scenario. A gambler may refuse to cash out on a hot hand because he or she has a “feeling” that it will continue. The fear of regret is a factor in many of the decisions that people make.

There is also the relationship between the “experiencing self” and the “remembering self.” Taste and decisions are shaped by memories and memories can be wrong. We sometimes feel our preferences and beliefs so strongly that they can seem to be somehow rooted in fact; this however, is often not the case. This applies even to our choice of vacation. For many people, the value of a vacation is not the experience but the anticipation beforehand and the memory afterwards. Kahneman sums up, “I am my remembering self, and the experience self, who does my living, is like a stranger to me.”

Key terms and concepts:

Anchors: are related to how people try to estimate an unknown quantity. An example, the amount of money you will offer to pay for a house is in large part influenced—or anchored—by the asking price.

The Certainty effect: describes a process where your chance for success escalates from very high to certain. An example, if you are bidding on eBay and knew you had a 90%^ chance to win an auction with a $20 bid, would you still be tempted to use the “Buy It Now” option for $25, thus paying five dollars more to offset the 10% of chance of losing your bid?

In his study of decision making related to gambling Kahneman found that people tended to overvalue small risk, again showing that people make calculations and conclusions that are not aligned with probability.

The Halo effect: can be seen whenever a person makes assumptions based on a factor. An example, a beautiful stranger at a dinner party may be automatically assumed to be successful and confident. The Halo effect impacts not just social situations, but economic decisions as well.

Loss aversion: is a term that reccurs repeatedly throughout the book. Case studies show how people tend to be more driven by fear of failure than by the promise of success. This is loss aversion.

Optimistic bias: explains the decisions that we make or the beliefs that we should in the face of ample evidence to the contrary.

The major theme of Thinking, Fast and Slow is that our brains are divided into System 1 and System 2. System 1 houses our emotion and intuition, and it processes information making decisions automatically. System 2 describes the part of the brain that gets wrapped up in rationalization and concentration and value based judgments. While System 2 saves us from many of the unchecked kneejerk idiocies of System1, its decision-making capacity is more limited than we often think.

WYSIATI—“what you see is all there is.” WYSIATI basically describes our minds jumping to conclusions, drawing simply on what is in front of us without looking for missing evidence or data.

Interesting observation: studies on the impact of money on happiness, Kahneman found that there was a predictable dramatic difference between people living in poverty and people making 69K a year. Beyond that, though, the studies offered some surprise: Millionaires didn’t show any greater emotional happiness than people around the 50K zone.

The general conclusion is “We have a very narrow view of what is going on. We don’t see very far in the future, we are very focused on one idea at a time, one problem at a time, and all these are incompatible with rationality as economic theory assumes it.”

Wall Street Journal: “One major effect of the work of Messrs, Kahneman and Tversky has been to overturn the assumption that human beings are rational decision-makers who weigh all the relevant factors logically before making choices.”….”What Messrs. Kahneman and Tversky argued that, even when we have all the information that we need to arrive at a correct decision, and even when the logic is simple, we often get it drastically wrong.

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Build to Serve

Build to ServeBuild to ServeBuild To Serve

Dan J. Sanders – Reviewed by Ray Silverstein

Leaders have spent far too much time focusing on fiscal resources and not enough time focusing on human resources. Long-term success is a result of putting more effort into building a positive, people-centered culture than poring over profit and loss statements.
The bottom line is not about price and profit; it is about choice and culture.

The author, Dan J. Sanders is president of United Supermarkets. One reason for its success is the United’s team members are genuinely considered family and United’s workforce displays the rhythm and innovation of a seasoned team. The company’s mission is defined by just six words: Ultimate Service, Superior Performance, and Positive Impact. The company is sustained by a culture-driven, people centered approach to business. The team members recognize personal relationships are their business.

The author believes the global culture that prevails today is broken. What is needed is a radical transformation—a monumental paradigm shift that will reshape our present understanding of the true purpose of work. This transformation begins with accepting the idea that an organization’s culture is the wellspring of sustained success. When the culture models this kind of vibrancy, such positive elements as growth, profitability, and good corporate citizenry are natural by-products. People are fulfilled professionally and personally, and organizations find deep meaning, resulting in a positive impact on the communities they serve. This is a business model that places people ahead of profits and service ahead of statistics.

A sustainable culture is built from the inside out. It starts with leadership that places the highest level of importance on human beings and a corresponding premium on recruiting, hiring, and training—both academic and experiential training—to equip and empower. A people-centered culture does not comprise values; rather, it seeks to remain faithful to values—even when remaining faithful means doing things differently from everyone else.

A leader’s actions, not words, form the basis for learning and eventually handing down a culture. People centered cultures are focused on marketing the work, not on advertising work that needs to be done. Example, rocks to be picked up (advertising), making a game of picking up the rocks (marketing). We all know unglamorous jobs exist in any profession, Even so, the successful completion of the work is largely the result of our mental approach to the task.

An organization’s ability to serve will be the last tool that can provide a competitive advantage in a crowded marketplace. Organizations desiring sustained success simply must embrace culture-driven, people-centered philosophy.

Understanding Higher Math:

Higher math requires an emotional alignment of the leader with all levels of the workforce. It is about building trust and having a positive impact on people. Financial statements are only a small part of the story. Spreadsheets fail to convey the emotional status of an organization’s leadership. They are tools and nothing more—fine when it comes to numbers, of limited use when it comes to the human factor. Simply put, engaging people in a manner meant to maximize their contributions makes a difference for both the organization and its people. People-centered organizations speak the language of potential—not so much as it relates to a sales number, but rather as it relates to the workforce itself.

Are people in your organization considered an expense or an asset?

People-centered organizations connect the work they are doing with the mission they are committed accomplishing. A sustainable culture-driven, people centered enterprise exists when team members take ownership of what they are doing and realize it is important and essential to the higher purpose. Cultures focused on people unleash the imagination and lift performance to new heights—to a higher purpose. Example. Medtronic, assembly of heart values… higher purpose, saving lives maybe a co-worker or family member.

The Emerging Career Model:

The people-centered culture relies on leaders who genuinely connect with team members.
Connected team members understand the organization’s vision and mission. Because of that, they recognize the unique importance of their own specific role. Everyone is empowered in a culture-driven, people centered organization.

United Supermarkets calls human resources, talent management. It is customary to base cash compensation on performance, however, consider alternatives where the psychological value is not lost. Trips and special events are a great way to recognize achievement and acknowledge team members throughout an organization.

Making Winners Fail:

As the leader, you can delegate authority, but you can never delegate responsibility. Successful leaders truly belong to their follows. The leader’s ability to understand servanthood and friendship is the difference between a career that flounders and a career that flourishes. Friendship means much more than simply what one person can do for another. It is an emotional investment in each other’s lives, creating a special bond, a common journey. Without investing the time necessary to establish relationships, an organization’s leaders will never realize that difficult-to-reach level of trust and peace..

Fortunately, once the relationships are established, the friendships are formed, and the teaching is under way, a leader learns the important lesson of letting go. Great leaders understand servanthood comes first, before mentoring and friendship. In sustainable organizations, connecting what people do on a daily basis with the higher purpose is paramount. The degree to which that connection resonates with the workforce is directly proportional to the degree to which the workforce feels a part of the community. The word community implies a sense of sharing in common—a sense of family.

People are promoted not for what they have done but for what they can do. When promoting someone to a new position, do so with the confidence that the person has the skills to succeed in that position. It is not enough to say someone was good in the past; the person has to be good in the future.

As leaders, we must resist the temptation to promote winners before they are ready. The success of team members rests on our willingness to take the time to forge relationships by first exhibiting servanthood—a genuine desire to help others make the most of their potential. Therefore, leaders must discern when team members are ready for promotion. And it is the leader’s job to ensure winners on the team win.

Telling Players From Fans:

Organizations are like teams. In fact, teams are composed of players and fans. Players represent the team every day of the week because, whether or not they are playing, they are still a part of the team. Players are apprised of the team’s strategies and tactics, know the “playbook,” and take ownership of their role in the overall success of each play. They rely on one another for support, and they recognize and embrace their teammates’ strengths. They win together and lose together. They exude camaraderie, loyalty and unity.

On the other hand, fans are fickle. If the team is winning, they are happy. If the team is losing, they are unhappy. Fans can actually infiltrate the team, interfering with the players focused on getting the job done.

Far too many organizations subscribe to a “needs-based” approach to hiring. In other words, no serious recruiting, interviewing, or actual hiring of talent takes place until a specific need arises. This is especially popular in numbers-orientated cultures.
Hiring “warm bodies” allows impostors to penetrate organizations. Too often, “warm bodies” fail to appreciate the organization’s vision, much less its values. Culture-driven, people centered organization adopt a healthier approach. They are always looking for players, even if no need exists.

The model begins with a vision of who you are and mission of what you want to achieve. In culture-driven, people centered organizations, values serve as a litmus test for a leader’s vision. Players with a clear vision will make great things happen. Players who have lost the vision creep over to the right side of the life-cycle curve. It begins with nostalgic thinking. Saying, “Let’s just go back to the way it used to be.” The problem with nostalgic thinking is it presents an impossible solution.

Stage two of the journey prompts unproductive questioning, which tears down a healthy organization. Often, these are complaints disguised with questions. Such as, why do have to keep this area so clean? If we are lucky, team members who reach state three will eventually move on to stage four and quit, but remarkably, people in stage three tend to hand on forever.

So how does a leader move people from the right hand side of the curve back to the left hand side? First , in a culture-driven, people-centered organization, it is the leader’s responsibility to remove impostors—to get the fans off the floor. Second, everyone creeps over the right-hand side of the curve from time to time, but most of us choose not to stay there. When we find ourselves distracted, the answer to getting back on the positive side of the graph is to refocus on re-embrace the vision—this is the key, the answer. The vision is everything when it comes to moving team members from ineffectiveness to effectiveness. Culture-driven, people-centered organizations never stop talking about their vision.

Defining The Who: See The Vision:

Vision matters. An organization’s vision represents the purpose of its existence—the heart of what it is an entity. Knowing and understanding the vision creates a level playing field for an organization’s team members and partners. In culture-driven, people-centered organizations, training manuals and checklists may have a role in standardizing policies or programs, thy they do not take the place of the organization’s heart and soul.

A clearly communicated and understood vision statement empowers team members to make decisions that support the organization’s higher purpose. Since leaders cannot delegate responsibility, they must rely on delegating authority ot get much of the work done. It is impossible to equip everyone with a list of action steps that will cover every conceivable scenario. What is compelling about a great vision well communicated is people will do almost anything to keep from compromising it.

In culture-driven, people-centered organization, leaders celebrate actions that support the vision, even if people occasionally bend or break some rules or policies in the process. In culture-driven, people-centered organization, leaders spend more time building relationships and communicating the vision to people and less time devising way to catch people intent on disrupting the process. Communicating the vision effectively allows supervisors to present disciplinary steps in the context of the higher authority.

The psychology of gains and losses and the finding that there is greater fear of loss than desire of gain. This is particularly true in Western culture because ego plays such an important part of self esteem. Business leaders capable of exchanging their ego for humility are more likely to see upside potential and gains than people are imprisoned by fear.

Many business leaders will not seek opportunities that require risk because they do not want to fail and suffer a hit to their egos. Failure to keep people informed leads to fear, the second-biggest obstacle to successful vision attainment. The first is pride.
Leaders must never grow tired of talking or modeling their vision. They may change it from time to time, but they must constantly remind their followers of the vision.

To develop the vision:

1. Think big. Ask stakeholders to share ideas regarding the need for the organization’s existence. Ensure the emphasis is on culture and people.
2. Identify what sustainable difference the organization will make for humankind that will transcend time.
3. Focus on the vitals—those deep seated values the team is unwilling to comprise.

Keep it short, less is more when it comes to articulating who you are. An effective vision statement has more to do with significance than with success.

When Things Go Bad (And They Will:

At no time is an organization’s sustainability more important than when bad things happen. Sometimes the pain is self-inflicted, and other time external forces deliver the blow a culture-driven, people-centered organization allows it persevere and rebuild.
Leaders must radiate positive energy throughout the organization when things are going well, and especially when they are not. Leaders should never deplete their team members’ energy; they should create it.

“Be Here Now.” The importance of living in the present moment.

  • Have you ever been with someone who was not there?
  • Have you ever been with someone and they were not there?
  • Have you ever been at a meeting and no one was there?
  • Have you ever gone home and left your brain at work?

When things go bad, leaders need a place where they can talk, listen, and remove themselves from the day-to-day chatter work. In culture-driven, people-centered organizations, human beings communicate with human beings. Progress is cultivated through a common understanding that solutions are ongoing dialogues for transforming relationships. Even when problems exist the best course of action is to communicate those issues openly and honestly.

Albert Einstein once wrote, “In the middle of every difficulty lies an opportunity.” Opportunities abound because we have choices to make. Healing starts where pride stops.

The 4P Management System:

The 4P’s of Management system required manager to address issues related to people, process, partners and performance with equal interest. Understanding the 4P’s starts with the observation that management begins and ends with human beings—people and partners. In misaligned cultures, organization prefer the opposite, beginning with performance and ending with human beings.

The 4P’s begins with the people inside the organization—the team members responsible for carrying out the day-to-day tasks necessary to operate the business. The next element of the model is process. Everything that happens inside an organization is a process. The key to improving performance is the elimination of as many obstructions in the process as possible. The further removed leaders are from the actual process, the harder it is for them to determine what is causing the obstruction. The sources of that information are the teams that use the process every day. They know precisely where the obstructions are located because they must work around those obstructions to carry out their duties.

Great ideas can spring from anyone in an organization. The culture of the organization dictates whether they surface. The third element in the 4P’s is partners, a term used to identify the importance of suppliers and buyers—customers, and users of the products and services sold by an organization.

During the past 50 years, customers have become a necessary inconvenience for many organization. Rather than embracing and celebrating the people who purchase their products and services, such organization merely tolerate them. When this happens, few, if any, organizations realize sustained success. Treating customers like partners is often overlooked, but it is important to culture-driven, people-centered organizations.

Culture-driven, people-centered organizations recognize poor performance is symptomatic of deeper problems—problems that require engaging people and changing processes. In this view, performance measurements are mere indicators—tools that prompt additional investigation and productive questioning. Performance measurements alone prompt more questions than they answer.

Humility Trumps Pride:

The biggest threat to an organization’s success is pride. In a culture-driven, people-centered organization, honest feedback is a must.

Pride is an interesting word. It has multiple meanings, some of them in direct conflict with one another. For example, one definition of pride involves a feeling of elation or satisfaction over one’s achievements, while another suggests a high or overbearing opinion of one’s own importance. Culture-driven, people-centered organizations seek to maximize the feeling of elation and satisfaction, derived from achievement and minimize any high or overbearing opinion of one’s worth or importance.

To accomplish this, first, organizations must keep people focused on the future, not the past. The destructive nature of pride is reinforced by what people have done, not what they have yet to do. Culture-driven, people-centered organizations are always moving toward what they want to become, as opposed to basking in their accomplishments.
Second, organizations must keep people focus on the pursuit of excellence, not the path to mediocrity. The pursuit of excellence forces people to confront their weaknesses, adapt their thinking, and keep their egos in check. Organizations must also keep people focused on the right kind of role models.

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