Emeran's TEC Blog

Bad Medicine: A Guide to the Real Costs and Consequences of the New Health Care Law

2012-01-30T20:10:00.000-08:00

By Michael Tanner Senior Fellow with the Cato Institute

It has been a year since President Obama's health care reform bill was signed into law.

The Patient Protection and Affordable Care Act represents the most significant

transformation of the American health care system since Medicare and Medicaid. It will

fundamentally change nearly every aspect of health care, from insurance to the final

delivery of care.

The length and complexity of the legislation, combined with a debate that often generated

more heat than light, has led to massive confusion about the law's likely impact. But it is

now possible to analyze what is and is not in it, what it likely will and will not do. In

particular, we now know that

- While the new law will increase the number of Americans with insurance coverage, it falls significantly short of universal coverage. By 2019, roughly 21 million Americans will still be uninsured.

- The legislation will cost far more than advertised, more than $2.7 trillion over 10 years of full

implementation, and will add more than $823 billion to the national debt over the program's first 10 years.

- Most American workers and businesses will see little or no change in their skyrocketing insurance costs,while millions of others, including younger and healthier workers and those who buy insurance on their own through the nongroup market will actually see their premiums go up faster as a result of this legislation.

- The new law will increase taxes by more than $569 billion between now and 2019, and the burdens it places on business will significantly reduce economic growth and employment.

- While the law contains few direct provisions for rationing care, it nonetheless sets the stage for government rationing and interference with how doctors practice medicine.

- Millions of Americans who are happy with their current health insurance will not be able to keep it.

In short, the more we have learned about what is in this new law, the more it looks like bad news for American taxpayers, businesses, health-care providers, and patients.

5 Things To Do Every Day For Success

2011-12-28T17:42:00.000-08:00

BY FC EXPERT BLOGGER DAYNA STEELE

TEC wants you to have your best year yet in 2012; click for more advice and tips from Fast Company on how to work smarter, manage your career, and lead a more meaningful life.

"You get up at what time?"

I hear that a lot, along with "You are so lucky." So, I'm going to help out here and let you in on the secrets of my success. Well, not all of them--but enough to show you the foundation I try to build on every day.

1. Wake up early. For the next week, get up a half an hour earlier that you normally do--and get going. If you get a few more things done, then get up even earlier the next week. Early in the morning is a great time to get work done because most of your associates have not started emailing, tweeting, IMing, or posting yet. *UPDATE: The rebuttal for those who want to argue this point

2. Read the headlines and watch the news. Not only should you know what is going on in the world, you will also be the first to recognize opportunities (if you followed #1) for you and your business--long before the competition has even had their first cup of coffee.

3. Send something to one person who can hire you or buy your product--something you promised to follow-up with, a quick email with a link to something relevant or a "Hey, just checking in to see how thing are going" email.

4. Touch base with an old friend or associate you haven't talked to in ages. Ask how they are, what are they working on and ask or suggest how you might help. You'll make their day.

5. Write a handwritten note to someone. Seriously. It is a lost art and makes quite an impression. There is always someone you can send a thank you note to--or you aren't doing things correctly.

A simple yet highly effective list. Try all five every weekday for a month. Then, tell me I'm right. If I'm wrong, I'll buy you a cup of coffee. When you finally wake up ...

Why Do People Do What They Do?

2011-11-20T16:05:00.000-08:00

Excerpted from Lee Thayer "Leadership: Thinking Being Doing.

You've had the experience. When people want to work at your place, they'll promise anything. They will offer to be the answer to your prayer. But after a few weeks, that same person may turn out to be as marginally mediocre as most of the others.

People are far more likely to talk a good story than they are to provide one. Promises are far easier to off than they are to fulfill. You may even have noted this flaw in yourself. Most people don't or can't "walk the talk" largely because they have never had to do so.

The lesson here is that you don't have to be a psychologist to understand people in fact the less psychological you are about this, the better off you will be. For leaders, the reality of who people are and what they are capable of lies entirely in what that actually do - or don't do.

Consider motivation. It is about causing people to do, or be, in ways consistent with your intentions. But most people can't even cause themselves to be different. So why would you believe you can cause in them what you can't cause in yourself?

Motivation is largely a myth. A very popular ingrained cultural myth. They seem to work reliably only with the kind of people who have already bought into the rat race (lab mice were deprived of food or sex and were carefully observed to see how motivated they were to get one or the other. This was generalized to account for why people do what they do). This seems to work with best with people who intend to do only as they are told, but expect to be rewarded for even trying.

So if we are not going to be psychological about it, why DO people do what they do? The best - and most potent - answers to this question have little to do with either motivation or with things like desire or intention. As a practical matter they do what they do, first, because they can. If they are totally incapable of doing something, then you won't see them doing it.

So leaders attend to that condition first. They make it necessary for people to be competent at what they are going to be required to do. Here are some thought provokers:

People do not become virtuosos even at being lazy except by practice.
People do not become adept at not being engaged in what they are doing except through practice. Everyone is born with their lights on. You have to work to turn them off.
Leaders rule of thumb: Don't practice what you don't want to get good at. Don't let others practice what you do not want them to get good at.

Should You Join a Business Group?

2011-10-26T18:21:00.000-07:00

Running a small business requires some level of expertise in many areas. There are management issues, marketing questions and financial realities. Trying to master all areas, or at least sort them all out, can be frustrating, exhausting and scary. Entrepreneurship differs from many other “professions” in that by definition you are on your own: no colleagues back at the office, no mentor or boss to show you the way. In addition, it is not just your paycheck that is at risk; it can be everything you have, not to mention money put up by friends and family.

I’ve learned that once you peel back the facade of most businesses, the inner workings look very similar. Whether it is a doctor’s practice, an insurance brokerage or a computer-board distributorship, there are common denominators, including customer service, cash flow, financial controls, people, sales and marketing. There are also partners, family members and personal issues that make the reality of running a small business much more than just an academic exercise.

To many, the cost may seem prohibitive. I understand. But the question is, how many tips, warnings, insights and ideas would it take to make the investment worthwhile? It is hard to imagine sitting through 12 meetings with other business people — including one focused solely on you and your business — without learning something that would be worth that money and more. There is also something to be said for seeing evidence that you are not the only one who struggles. It can be a confidence builder just to know that all businesses have problems — some that you have, some that you don’t. The most valuable information you learn about problems is about the ones that haven’t hit you yet.

Beyond the money, there is also the issue of time, which can be even more challenging. It is hard for many owners to imagine being out of pocket for an entire day every month. Then again, this reminds me of the lumberjack who is too busy to sharpen his saw. The ironic part is that it’s often the people who are most convinced they couldn’t possibly find the time who are most in need of the guidance.

Start with Why Revisited.

2011-09-19T07:29:00.000-07:00

Vision without execution is hallucination.

Just as Thomas Edison reminds us in the quote above, a Why is useless until you can make it tangible. Our Why, to inspire people to do the things that inspire them, would just be a nice idea until we had some things to help you do that. The good news is, we do.

With a little discipline, anyone can learn to inspire. In our current reality of slower growth this can be a big differentiator to gain market share.

START WITH WHY offers an unconventional perspective that explains WHY some people and organizations are more innovative, more profitable, command greater loyalties from customers and employees alike and, most importantly, are able to repeat their success over and over. These are not the one hit wonders. These are the ones who change the course of industries or even society.

Because it’s all based on how people think and act, this unique view of the world has application in big business and small business, in politics and non-profit. Though some people have a natural ability to start with WHY, this book offers compelling evidence that, with a little discipline, anyone can learn how to do it.

How does one idea do so much? Simple. It doesn’t matter what you do, it matters WHY you do it.

Why the company was founded. What cause is it trying to promote.

Everything I do is to allow people to grow personally and professionally. Live to do what you do. Have a passion for the why.

Why is a belief? Purpose cause. Intangible.

How is the action we take to realize that belief?

What is the result of those actions? Tangible. Say do, make, sell. Measurable.

Long Range View Exercise

2011-08-20T08:40:00.000-07:00

Based on the premise that the next 7 years will be different in many respects than it has been in the last 70 years and assume that the overall economy is in a 0% growth mode starting in 2011, there are at least three major challenges that need to be addressed.

Establish a Source of Funds

Higher margins and lower costs. Fire low margin customers.
New or improved banking relationships.
New investors – family, non banking sources.
Merger or Acquisition potentials.
Invest in equipment for efficiencies.
Review of all business processes – seek out sustainable savings.
Tight control of inventory/receivables to preserve cash.

Sales Growth Opportunities.

Market Share opportunities from Competition
New Products or Service offerings.
Innovation to providing increased value.
Mine existing accounts, New Customer in growth Markets/Segments.
Export Opportunities.

People Investments.

‘A’ Players in Key Positions.
Right people on the right seat on the Bus.
Providing people opportunities to increase their competencies.

As CEO, how are you going to adapt and overcome a “choppy” economy while facing both business upturns and recessions in this “lost decade” with 0% growth in GDP? How are you going to be the exception to no growth in your business?

The Paradox of Freedom - by Greg Bustin

2011-07-24T13:28:00.000-07:00

Americans celebrate our freedom from tyranny in the month of July.

As we begin the second half of the year, it struck me that our personal and professional effectiveness for the balance of the year (and for the rest of our lives, for that matter) can be enhanced by acting more intentionally on our freedom of choice.

Most of us have the freedom to choose. We can choose where we want to live. Where we want to work. What type of work we want to do. Who we want to associate with at work and live with at home.

The paradox of freedom is that to be most effective at fully developing our thoughts into specific goals and then implementing a plan to achieve our goals, we must choose between what we are willing to accept and what we are unwilling to accept.

In other words, we have the freedom to choose our priorities. Likewise, we have the freedom to set aside those things that serve only to distract us from executing our priorities.

It’s been said that the essence of a great strategy is sacrifice. To be the best at one thing, we must intentionally choose NOT to do other things.

We must focus our thoughts. And we must focus our actions. We must be disciplined in our thinking and in our execution of those thoughts. We must work at it.

Consider this thinking from Elton Trueblood, author of 33 books (most notably The Predicament of Man), chaplain to both Harvard and Stanford, and presidential advisor:

“The basic paradox of freedom is that we are most free when we are bound. What matters is the character of our binding. The one who would be an athlete but who is unwilling to discipline his body - is not free to excel on the field or the track. His failure to train rigorously denies him the freedom to run with the desired speed and endurance. Discipline is the price of freedom.”

So as we continue to enjoy our many freedoms, we must continue to think intentionally about the values, beliefs and actions we live out every day in our professional and personal lives.

We must be willing to make tough choices in order to achieve the goals we have set for ourselves. That’s the paradox of freedom

You Have a Blind Spot

2011-06-26T21:00:00.000-07:00

It doesn’t matter how successful you are or how many years you have been successful, you share one thing with every other leader out there – you have a “blind spot.” That’s right, you don’t know what you don’t know – and we call that your blind spot. People around you see things about how you run your business that you do not, and often those people are your employees and key executives.

Why don’t they speak up and tell you? For one reason – they are not your peers. They have too much at stake to directly contradict you. So they will tell you some things, and they will withhold other things, no matter how many times you tell them you want them to be candid with you. And there are many, many more things that neither they nor you will see in advance. It’s the nature of business today – highly complex and constantly changing. The demands placed on your time and energy are unprecedented.

Imagine that you are sitting in a board room today, and picture yourself surrounded by other CEOs, Presidents, and business owners – of substantial businesses with many employees and complex demands. These folks have no stake in your game – they can afford to be totally honest with you, and they want only your greater success.

Now picture yourself discussing one of your top business concerns – something that you must make a decision about and act on in the next 30 to 60 days. Now imagine your peers asking you relevant, penetrating questions – questions that help you uncover something highly important to the success of your initiative. And then imagine that at the end of the discussion – a candid, unvarnished discussion (remember, these folks have no stake in your game and can afford to be completely candid) – you have new solutions that go a step or two beyond where you were going prior to the discussion.

Then, a few days later, you sit down with your TEC executive coach (that’s me) and flesh out your strategy in detail. Later, you share with the group the success you achieved as a result of their candid feedback. That’s what we do every month, and so much more.

Role Description versus Job Description – excerpted from Lee Thayer cont’d.

2011-06-05T17:33:00.000-07:00

To review; a job description describes, more or less ambiguously, the activities that a person carries out in her job. Using job descriptions almost guarantees that the status quo will be maintained.

A role description, by contrast, describes unambiguously what a person in that role would be able to accomplish regardless of any adversity in order for the organization to fulfill its destiny – its story, its “why”.

A role is one of several indispensable functions for making that story turn out as intended. The people are players and they have a role to perform to make the story unfold as envisioned. A role description describes what the incumbent of that role has to accomplish in order for the

whole to evolve as intended.

The incumbent of a roIe description develops the competencies to perform that role, not relying on the skills or experiences they happen to bring to it. People act out themselves in job descriptions. A role description requires them to play, not themselves, but the performance demanded by the role.

The significant and very consequential difference is that job descriptions generate the present out of what worked in the past for a particular person. A role description, by contrast, outlines the contributions required of that role for the organization to fulfill its cause or mission in the future (its story/why).

The envisioned organization doesn't yet exist. It is the right people performing extraordinarily in the right roles that bring it into being. Most people have not lived under the influence of a cause or mission in life, and therefore never had - because they never needed - a role description designed to get them there.

Every person at every moment of the day is performing a role. But for most people most of the time, they are not conscious of what it is. They may have thought fleetingly about the future but didn't like thinking about the role description required to get them there. (Too demanding, too much accountability.) And most of the time their roles are in the default setting - meaning that their old habits and other people are pulling their strings.

Role Descriptions versus Job Descriptions

2011-05-15T07:40:00.000-07:00

Excerpted from "Leadership: Thinking Being Doing" by Lee Thayer and "Start with Why" by Simon Sinek.

To be able to use some tools for being different (like being the best) you have to be different yourself.

If you are had by a great and worthy purpose - your "why"…..and

If you have a potent and compelling strategy for getting from here to there…..and

If you can tell a story that inspires others …..and

If you have the right roles to implement your "how" and the rig people in those roles.

Then you might be the right person to wed the tools for being different. There is no tool that can bebe better than the person using it.

The first of these tools is that of role descriptions. A role description is not another name for a "job description". In fact it is how different they are that you want to come away with.

A job description describes the activities that a person carries out in their job. Using job descriptions almost guarantees that the status quo will be maintained. That the organization will recycle itself on a daily basis. And that its destiny is given in the activities of the day.

A role description, by contrast, describes unambiguously what a person in that role would be able to accomplish regardless of any adversity. It does not describe a person nor activities they might engage in. It is a description of the role to be performed with great mastery in order for the organization to fulfill its intended destiny.

A job description lists activities. A role description sets forth accomplishments the incumbent has agreed to become capable of delivering under adversity.

The significant and very consequential difference is that job descriptions generate the present out of what worked in the past. A role description, by contrast, outlines the contributions of that role for the organization to fulfill its "why", "cause" or mission.

More on this very important tool in future blogs including examples, etc.

Start with Why

2011-04-25T19:53:00.000-07:00

From Simon Sineks book and presentation: Start with Why".

People don't buy what you do they buy why you do it. The "why" of your business is a belief, your purpose, why you exist and why you and others want to get to work every morning.

The "how" are the actions you take to realize that belief. And the "whats" are the results of those actions. Companies who start with "why", like Apple, inspire their employees (the "how") and their customers (the "what"). Most people start with their “how” and “what” for good reason. They are clear and easily articulated.

But not inspired companies or inspired leaders. They always start with “why”.

• CEOs with a clear sense of their "why" are able to lead because those who follow trust that the decisions made at the top have the best interest of the group at heart. In turn, those who trust work hard because they feel like they are working for something bigger than themselves.

• The goal is to hire those who are passionate for your WHY, your purpose, cause or belief, and who have the attitudes that fit your culture. Only then look at skills and experience.

• Great companies don’t hire skilled people and motivate them. They hire already motivated people and INSPIRE them. Inspiration can’t occur unless the WHY is well known and practiced consistently.

Here are TEC's "Why", "How" and "What" that has existed for 53 years.

Why: We believe in making a difference by helping CEOs grow personally and professionally.

How: We do this with roundtables of CEOs sharing experiences, top speakers and one on one coaching.

What: And our members make better decisions getting better results.

Raise Your Prices Before It's Too Late

2011-04-19T05:48:00.000-07:00

By Chuck Reaves - The Chief Sales Officer - chuck@chuckreaves.com

YOU HAVE AN 18-24 MONTH WINDOW.

There is a trend here and it is serious. Two compelling forces are having - or are about to have - a significant impact on your business. Brian Beaullieu, favored economist for Vistage and others are concurring on the following:

1. INFLATION IS HERE - In addition to the higher prices at the pump and grocery store, prices are increasing for many raw materials. Watch the prices of virtually all metals over the past few months for an example. If these costs continue to rise as expected and you are locked in with a contract supplying your client, you may find yourself underwater - and it may happen sooner than you think.

2. OPPORTUNITIES ARE INCREASING - Business is ticking up in many categories. Inventories are being replenished, hiring is inching up and some sectors are seeing their best results since 2008. The issues resulting from the Japanese earthquake are giving alert businesses in North America some unexpected surges. (How much heavy equipment will be needed to repair the damage in Japan, for instance?)

Still, businesses are reluctant to hire because they believe this could be a bubble. The economists tell us this growth will last through early 2013. Opportunities are there but production costs are unstable. What is a CSO to do? Raise your prices.

How To Raise Your Prices

It is true that if you arbitrarily raise your prices your volume will go down. However, if your raise your prices in concert with the ability to sell value instead of price, your volume can actually increase. Here are the three steps for raising prices:

1. FORECAST As well as possible, forecast the price increases you anticipate for the next 18 - 24 months. All sales need to be profitable; make sure your prices are right. Those discounts you've been offering for long-term agreements need to be reevaluated.

2. PREPARE Price increases are inevitable. Begin now to give your salespeople and sales managers the tools they need to sell on value. These tools include sales training, sales development, sales tools, compensation program adjustments and new incentive programs. Have your people ready to play the new game - and play to win.

3. IMPROVE RELATIONSHIPS More than ever, you will need to build, maintain and continuously improve your relationships with your clients and your vendors. Clients will tell you what their long and short term needs are going to be but they may not be prepared (budgeted) for the coming cost increases. Trust is king; communication builds trust. Sell upstream by asking your vendors to lock into long term pricing agreements. Like your competitors, at least some of them will continue to sell on price.

Contact Chuck to receive his CSO Newsletters at chuck@chuckreaves.com. An outstanding resource for your sales team.

The Trustworthy Leader

2011-03-27T20:56:00.000-07:00

By Lee Thayer.

Two engaging issues to be dealt with here:

1. How the leader decides when to trust others.

2. The “trustworthiness” of the leader him/herself. We will deal with this one on a later blog article.

Generally, in books and seminars where this is promoted, the assumption that is being peddled is that if you will only “trust” your troops they will be better performers as the result of this trust in them.

The reality is that competence and trust are tenants of two different worlds. Trust is an intangible in this case a pop psychology sort of thing. And competence has to do with performance in the real world.

The two are related only as follows: A person who is competent to perform at a high level in his role, under adversity, can be depended upon – that is, can be trusted. To trust someone before there is that kind of evidence is risky.

One of Murphy’s Laws: “Trust only those who stand to lose as much as you when things go wrong.”

Richard Nixon apparently didn’t apply this rule of thumb. Lyndon Johnson apparently did. Robert E. Lees’ troops thought they had lost much more than he did of they lost a battle.

Trust should not be offered in an asymmetrical situation, common in most organizations and institutions. When gain and blame are felt by the people involved to be equally distributable, trust is far more appropriate and far less risky. The players trust each other because they have plenty of evidence for doing so.

Richard St. John's 8 secrets of success - 3 minute video

2011-02-20T19:42:00.001-08:00

A VERY SPECIAL NIGHT

2011-02-07T11:25:00.000-08:00

By Andy Burkart TEC 18

A few thoughts about the Super Bowl I want to share.

It has been said that sometimes sports transcend life in a special way, and most of the time I think that’s really a lot of hoopla. One can argue that in our society sports can be taken too seriously, but that being said, Sunday night was a special night.

What transpired last evening was rare, to say the least. If you have not seen the movie Hoosiers, I would recommend it. It is reflective of last evening. We saw:

· a coach developing a quarterback he did not think was going to be a special player (Mike McCarthy, when he was with the San Francisco 49ers);

· a team devastated by injuries to key players all year having to ask substitutes (and yes, they are substitutes for a reason), free agents, and low draft picks to play key roles;

· a game in which two of the highest performers and most respected leaders were lost to injury and another key defensive player was injured as well;

· Kevin Green telling Clay Matthews, “Now is the moment,” and Clay making it happen;

· Aaron Rodgers continuing to go to players who had dropped key passes at critical times;

· Jarrett Bush, who many Packer fans wanted to run out of town, making key contributions; and

· a camera shot of Bart Starr beaming with pride as Aaron Rodgers was presented the Lombardi trophy.

I have been very fortunate, as I saw the Lombardi Packers of the ′60s as well as the 1996 Super Bowl and the Mike Holmgren-era Packers, but I doubt we will ever experience a season and an evening like we did this year. These things just don’t happen!

Enjoy the memories!

Lifeline Relationships

2011-01-30T16:56:00.000-08:00

Behind every great leader, at the base of every great tale of success, you will find an indispensable circle of trusted advisors, mentors, and colleagues. These groups come in all forms and sizes and can be found at every level and in nearly all spheres of both professional and personal life, but what they all have in common is a unique kind of connection with each other that I’ve come to call lifeline relationships.

These relationships are, quite literally, why some people succeed far more than others.

There’s a good chance that you’ve already experienced the power and potential of lifeline relation- ships at some point in your life. Imagine some of the attributes of the best bosses you’ve ever had— the kind of boss who encourages you, who gives you space to grow, who appreciates your efforts, who doesn’t micromanage but guides your development with wisdom, and who handles your slip-ups with firmness, understanding, and candor. Or think back to that good friend or family member who dropped everything to be there for you at a critical juncture in your life and didn’t let you fail. Picture that associate you had at work who took a risk for you, and whose influence still touches you today.

If you’ve ever had an important person or group of people in your life who’ve shepherded you in the right direction—even if you’ve had just a taste of it—you know what I mean.

A Call to Action

Each one of us is a salesperson, leader, and entrepreneur, seeking answers. All of us work hard at our jobs and careers—and I include stay-at-home parents in this category. We’re all entrepreneurs of our own ideas, whether we own our own companies or work for someone else. We’re all leaders in our own lives—with our colleagues, with our employees, with our kids, and in our communities. Each one of us is a salesperson of ourselves and our opinions, if not of business products and services. And most of us come up against personal and professional problems that are just too big to solve alone. If we want to be as successful as we know we can be, we need the help of others.

Leadership and Change

2011-01-20T04:23:00.000-08:00

Lee Thayer author of one of the most powerful books on Leadership says “If you want to know the organization your deserve, look at the one you’ve got”. In other words the people in your organization are the ones you put there or by the people you selected to put them there.

The attitudes and performance of everyone in your organization is the direct result of who you are as that determines your leadership. What you think about is the source of your leadership and conventional thinking always produces conventional results.

Think about this in view of our current economic situation – there is no competitive advantage in doing anything conventionally. That places the outcome totally on chance or luck. When everyone thinks conventionally the winner will be determined by the roll of the dice – or the one willing to go to the lowest price, no matter the cost.

Two things to overcome: conventional thinking is easier and will probably go unchallenged by those who you have that think the same way. Another problem is that conventional thought may have resulted in some successes and is likely to become resistive against change.

Things are changing all the time. Changing some part of their world from the way it is to the way it ought to be in the work of leadership. Much of the talk about change suggests simply rearranging things. Leaders do not simply rearrange things but create a future out of their vision of it.

· Managers change things. Leaders compose the future.

· People want to be relevant. Changing them does not make them so. Being a part of making the future does.

· The leaders influence lies here.

Change is often painful. People will not like you for making changes that affect them personally. They may enjoy talking about change, but when it comes right down to it, they would prefer the status quo. That is why, in any contest between change and the status quo, bet on the status quo.

The success of your vision will not be at the end of the easiest and well worn path. The future you need to create has occurred yet. Great achievements are always “in spite of’ not “because of”.

The Magi

2011-01-01T18:58:00.000-08:00

By Chuck Reaves

They are alternately referred to as the "Three Kings" and the "Three Wise Men". They had each achieved a position of power and were respected for their wisdom.

Wouldn't some people say that of you? (There is no room for false modesty here.)

They were not content to rest on their achievements; they went looking for greater power and wisdom. And they were willing to give a handsome gift when they found it.

Would people say that about you?

For 2011, consider focusing on your strengths, not your weaknesses. Take your strengths to the next level. As a leader, you will need to challenge those you lead to do the same. Begin the new year with a plan and a commitment to up your game while mentoring others to do the same.

How to:

Identify your three or five greatest personal assets - the traits that have made you successful.
Determine what else you could learn that would make those assets even more valuable to you and your organization.
Find the books, courses and people who can help you take your abilities to the next level.
To help others, do what has been suggested in this column before:

Write down your ideas - Steve Blue did and his book, "Burnarounds" is a stellar example
Develop courses - Do-It-Yourself, in-house training is effective even if it is not smooth and polished
Be a mentor - challenge others as you would like to be challenged; teach as THEY would like to be taught

2011 is here - make the best of it!

Sell The Why

2010-10-30T11:43:00.000-07:00

Here is a powerful video by Simon Simek describing a unique and effective FIRST in any sales activity - addressing the "why" your company exits - your beliefs. People buy the "why" not the what. Turns the focus from the what you do to why you do it. Why does your business exist? What is your/its purpose?

Do Any of These Success Stories Fit Your Business Model?

2010-10-24T17:27:00.000-07:00

Excerpted from Chuck Reaves Newsletter www.salessuites.com

From Blue Company (B2B component manufacturer):

"[Blue Company] has left 2009 behind and is on track to be the same company we were in 2008 with the exception of profitability....it is twice what it was in 08."

From Red Company (B2C consumer products):

"We are on budget and more profitable than we thought we'd be. We have doubled our sales force in the past few months."

Both of these companies run lean and mean.

The largest has been implementing Lean, Kaizen or Sustainable processes for some time. The manufacturer has reduced cycle time for some of their critical components from weeks to hours while steadily improving the quality and lowering costs.

The consumer product company has streamlined their operations so that the same decline in category sales that severely stressed their competitors has them increasing their sales effectiveness to the point where they need more salespeople. The next step for them will be a Kaizen for Sales event.

So is it too late for your organization?

Could be.

What You Can Do Now

Your TEC Group can be of tremendous help in this area right now. If you're not engaged in a TEC Group, this would be a good time to look into it. Both of the companies mentioned above have been involved with the organization.

Focus on efficiency by having small teams (two or more people) in each functional area dedicating time to finding new ways of doing things better.

Key questions everyone needs to be asking every day:

How can we do this better?

How can we do this faster?

How can we do this at a lower cost?

What is a CEO Roundtable?

2010-10-10T06:48:00.000-07:00

1. A place where I can take my ideas about my business and have them challenged by business professionals who have not stake in the outcome, thus can give an honest opinion.

2. A place where I can find that my issues are very small in comparison to other issues in the room. Once I thought I had a cash flow issue, only to find out another CEO in the room was deliberating borrowing “another” $100,000 from his mother in law. I did not have an issue!

3. A place where I can be encouraged by my TEC Chair. If I could get to be ½ as good as my Chair thinks I am…I would be amazing!

4. A place where I can build relationships with a very diverse group of people. I can learn better how people that are very different than I am - think and process information.

5. A place where I can learn how business owners think to help me with policy and campaigns aimed at increasing revenues. I can learn how CEO’s view their own businesses and use that to sell more to other CEO’s.

The Imaginative Leader.

2010-09-22T20:05:00.000-07:00

By Lee Thayer – Leadership Viruosity.

Life is created in the imagination. It is lived in the imagination. What you can’t imagine, you cannot do. What you cannot imagine, you cannot be.

Every organization, before it was created, existed in someone’s imagination. We try to imagine what’s going on. Once we get a fix on that (in our imagination), we try to imagine what to think or do about it. Things usually turn out the way they do because we have neither the will nor the power to force the issue. We accept what comes our way because we cannot imagine it otherwise. It is for the lack of that tool that we are put upon by the trials and tribulations of life. Leadership virtuosity is built upon the extraordinary reaches of the Leader’s imagination.

People vary greatly in their capacity for using imagination as a tool for thinking and for maneuvering through life’s roles. There are, of course, various ways of imagining ….imagination.

Yet the future we can’t imagine, we can’t have. We trudge along, bringing to fruition the world we already have. If we could imagine an alternative we could create it.

It is the imaginative reader who gives life and meaning to words. The richer the imagination, the richer the experience. Leadership virtuosos select their reading material very critically. They want to exercise and grow their imaginations. And that’s not going to happen without an imaginative reader connecting with an imaginative writer.

Words as such don’t move people. Imaginations do.

Leadership virtuosos “read” what is going on in the world as if it were a story whose ending they could change by intervening. This is a very sophisticated level of imagining. It requires first of all “reading” the world in different ways and in all of its potential complexity.

If what happens in the world challenges the virtuoso, she challenges it back in her imagination. She knows that the real world is a formidable foe. So she deals with it from a formidable imagination.

Rather than being used by the world, she imagines how she could use it for her purposes. She needs both to be able to “read” the world in that way, and to have the competencies required to do something about it.

It Isn't Just a Myth: A Little Thanks Goes a Long Way!

2010-09-21T08:06:00.000-07:00

By Robert I. Sutton, PhD

Wise bosses don't just display empathy, compassion, and appreciation through dramatic and memorable gestures, as Dean Plummer did for me. They convey it through tiny and seemingly trivial gestures. As we've seen, effective bosses work their magic by piling up one small win after another--and realizing that followers are watching their every move. A host of renowned bosses talk about the importance of thanking people, about the power of this small gesture and how failure to express appreciation to people who are working their tails off is a sign of disrespect. The late Robert Townsend, former CEO of Avis and author of Up the Organization, defined "Thanks" as "A really neglected form of compensation." Max DePree, former CEO of furniture giant Herman Miller, described saying "thank you" as among a leader's primary jobs.

I thought all this talk about something so small and so obvious was overblown until aprofessor from another school told me about a trip he took with his university president to China. The logistics of the trip were difficult, as it was a traveling road show where transportation, hotel accommodations, meetings, and hundreds of other little details, had to be orchestrated. The staff traveling with the group worked 12 to 16 hours day on these chores and did a magnificent job. Yet my colleague reported that, even though the president made many requests of the staff during the trip, he never once thanked them. This lack of gratitude was demoralizing, as they catered to his every whim but weren't otherwise noticed or appreciated.

This perspective on the power of simple expressions of appreciation is bolstered by a series of four intertwined studies by Adam Grant and Francesca Gino in a paper called "A Little Thanks Goes A long Way: Explaining Why Gratitude Expressions Motivate Prosocial Behavior." These researchers found, in each study (all are randomized experiments with control and treatment conditions), that a simple expression of thanks by someone in authority led people to be more likely to volunteer to do extra work. Their research shows that this happens because the simple act of being thanked makes be feel more valued--and in some of these studies--it also increased peoples' feelings of self-efficacy (essentially, the perception that they were making a bigger impact on the world around them).

I was especially interested in the study with university fund raisers. The simple act of having a boss come by and offer a public thanks to one group, and but not the other, really packed a wallop. These fundraisers were paid a fixed salary, so Grant and Gino compared the number of phone calls made be each fundraiser before and after the "thank you" intervention. The results were pretty impressive, as while there was no change in the average number of calls made by the group that was not offered thanks, the folks who heard a warm two sentence thank you from a boss made an average of about 50% more calls during the subsequent week.

John Mauldin Testimonial

2010-09-21T07:34:00.000-07:00

This posting is for a TEC testimonial from a respected economist John Mauldin who speaks to TEC/Vistage groups. The last paragraph summarizes his view of the economy going forward.

"This week I spoke to a small group of businessmen/entrepreneurs about the economic environment, and after my presentation one asked me whether I didn't have any good news for them, with a kind of gallows humor laugh. And I tried. But upon reflection there is more I could have said, so this week's letter will be what I should have said to be a little more encouraging.

The group was a TEC/Vistage group in which my daughter Tiffani participates. This is an organization of 12-16 businesspeople (in this case all CEOs of small businesses) who meet once a month to share and learn about better business practices, accountability, planning, and all the aspects of running a business. Every person I have ever met who has been involved in TEC/Vistage has had good things to say about it. I have watched it help Tiffani a lot. She truly runs our business now, allowing me to read and write and travel and speak. I am a very lucky man and proud Dad.I have particularly watched my partners at Altegris really truly transform their business model through their involvement with TEC.

First the CEO, Jon Sundt, joined, and now the partners have all joined TEC groups focusing on their roles in the business. Sundt was always a good businessman, but the level of professionalism of his whole company has gone up a notch. It is a pleasure to watch them grow, and they give TEC a large measure of the credit for their success. If you have a business and could use some help and professional mentoring, you should look into finding a TEC/Vistage group that works for you.

They match businesspeople in different industries but with roughly same size businesses. In tough times you need all the help you can get.I talked to them about the current economic environment and what I saw coming down the road. Long-time readers know that I think we are in for an extended period of slow growth, high and sticky unemployment, and volatile markets punctuated by more frequent recessions. That is what you get when you have a deleveraging environment resulting from a credit crisis. It is what happens when the Debt Supercycle ends. We start the journey to the New Normal and it just takes time."

Myth: Practice makes Perfect Truth: Practice Makes Permanent

2010-08-22T18:03:00.000-07:00

by Chuck Reaves

We all know people who claim to have ten years of experience when what they actually have is one year of experience ten times over. It may be true that all we need to know we learned in kindergarten, as Robert Fulghum wrote; just remember that one of the things we learned was how much more we needed to learn.

Humans are creatures of habits - and that's usually a good thing. Were it not for habits we might spend too much time concentrating on mundane, simple things we do without thinking, like getting ready in the morning.

But when important activities like pre-call planning become habitual, we can be sure we're not doing it as well as we could.

It's Back To School Time

This is the time of year when students eagerly or reluctantly head back to the classroom.

Which are you? Eager or reluctant?

In the classroom there are students and teachers. Which are you?

If you're a professional, you are both. You have a lot to teach and you have more to learn.

You have a lot you could be teaching others. How are you sharing your knowledge and experience? Do you have regular brain-storming sessions with others on your team? Are you conducting regular Do-It-Yourself (DIY) sales training and coaching sessions? What new idea, concept, process or tool have you started using recently?

Be an example to the kids you influence. Show them that there is always more to learn and that our education is never complete. Instill in them the thirst for learning by being a learner.

Here are some effective ways to do it:

Mentor someone - we teach that which we most need to learn.
Form a mastermind group - meet regularly (and faithfully!) with other sales professionals and share best practices.
DIY Training - for more than five years I have been recommending regular in-house sales training sessions. The companies who are doing this are seeing remarkable results especially in the second and third years. Rotate the role of facilitator, use a common source of material, share best practices.

Résumé Overload? A Shortcut to Spot Best Hires

2010-07-27T06:24:00.000-07:00

By MIKE MICHALOWICZ Reprinted from the Wall Street Journal

If there's one thing we small-business owners need it's more time in our days. If you're like me, you're constantly on the hunt for the secrets to doing something faster, better or cheaper.

Hiring employees is no exception. Finding the right people is never easy, but in today's turbulent economy, job seekers are responding to every job opening they hear about, inundating us with résumés. Many business owners think using the online job boards is a shortcut to finding the right potential employees. But the job boards usually elicit an overwhelming response from unqualified applicants, leaving us with hundreds of résumés and no clue as to how to cull through them all to select the best people.

For years I've used a special filtering technique to avoid this problem. My secret? In the ad (about three-quarters of the way down) I tell the applicants, "To prove that you're a meticulous reader, you have to include the following sentence when you send your résumé: 'It is with my utmost respect I hereto surrender my curriculum vitae for your consideration.'"

Then we use what I've dubbed the "Quick Qualifier" which sounds fancy, but is nothing more than an email filter which searches for the requested sentence. I only consider applications that contain the sentence, which cuts the number of résumés I have to look at by upwards of 80%.

Why does this seemingly silly technique work?

1. Including the sentence shows the applicant has read the entire ad and knows what the job entails and if they're qualified to fill it.

2. Many people today are blasting résumés (batch responding) to everyone and their mother. They don't care what the job is; they're just looking for a paycheck.

3. Using the sentence shows they pay attention to detail.

4. Most important, business owners want employees who will do as they're told. If they've used the sentence, it shows they're more inclined to explicitly follow directions and do what you expect of them.

I've used the "Quick Qualifier" dozens of times and it has rarely failed to select the best qualified people for the job. In fact, the best employee I ever hired not only included the sentence in her email response, but wrote, "Yes, I'm so detail-oriented I am including the sentence you requested. However, I also noticed you spelled the word 'meticulous' incorrectly, and here's the correct way to spell it." We hired her immediately and she ultimately became a partner in one of my companies.

This method may seem like a gimmick to some of you, but it's been a timesaver for me. And it shows that the fastest path to hiring may indeed be the best.

Exactly what is 'Thinking Outside the Box'?

2010-07-26T21:17:00.000-07:00

By Ed Bernacki
A reason I often hear for the need for innovation training is to get "our team to think outside the box."

This may come from the person at the top who feels that the quality of solutions or ideas is not great. This stems from frustration. It also comes from people working in teams who feel that the contribution of others is not helping find new and original solutions to the challenges they face.

If you have ever been in this situation, you will know how hard it is to deal with. Perhaps it is best to start with what this term actually means.

I don't know of an official definition for "out of the box" thinking, but here is my perspective starting with "in the box" thinking.

Inside The Box
Thinking inside the box means accepting the status quo. For example, Charles H. Duell, Director of the US Patent Office, said, "Everything that can be invented has been invented." That was in 1899: clearly he was in the box!

In-the-box thinkers find it difficult to recognize the quality of an idea. An idea is an idea. A solution is a solution. In fact, they can be quite pigheaded when it comes to valuing an idea. They rarely invest time to turn a mediocre solution into a great solution.

More importantly, in-the-box thinkers are skillful at killing ideas. They are masters of the creativity killer attitude such as "that'll never work" or "it's too risky." The best in-the-box thinkers are unaware that they drain the enthusiasm and passion of innovative thinkers while they kill their innovative ideas.

They also believe that every problem needs only one solution; therefore, finding more than one possible solution is a waste of time. They often say, "There is no time for creative solutions. We just need THE solution."

Outside the Box
Thinking outside the box requires different attributes that include:

• Willingness to take new perspectives to day-to-day work.
• Openness to do different things and to do things differently.
• Focusing on the value of finding new ideas and acting on them.
• Striving to create value in new ways.
• Listening to others.
• Supporting and respecting others when they come up with new ideas.

Out-of-the box thinking requires an openness to new ways of seeing the world and a willingness to explore. Out-of-the box thinkers know that new ideas need nurturing and support. They also know that having an idea is good but acting on it is more important. Results are what count.

“I left a voicemail.”

2010-07-11T23:37:00.001-07:00

By GilCargill

This is a phrase that we hear from salespeople all too often. Emails and voicemails are not – and I repeat, are not – adequate means of following up on prospects and leads. Sending an email doesn’t mean your contact got the email; the same goes for voicemails.

Let’s become proactive and work hard to get your prospects on the phone and/or in a face-to-face meeting with you. Now, in order to do this, you need to make sure that your customers understand the value of talking to you. The easiest way to estimate the value of engaging with you is for you to understand what it costs a customer to say no to you and your offer.

You see, the other side of no or “not now” is the value that the customer will get. If they see no value, then they won’t answer the phone and won’t respond to emails and/or voicemails. If they understand what it costs them to not implement the ideas, products, services and/or solutions that you’re presenting, they will have a degree of urgency which you’ll find to be very profitable.

So, let’s take the initiative during these interesting economic times. You can opt out of the recession by being proactive. And, remember… Somebody is buying something from somebody, somewhere.

There's a Slow Train Coming

2010-06-28T18:32:00.000-07:00

by John Mauldin

The consensus for growth in the last half of the year is around 3%, with some forecasts even higher. That would be a good number, but the usual number coming out of a recession would be over 4% and approaching 5%, so even the optimists are forecasting a weaker than usual recovery.

New and existing home sales are up, but that appears to be largely related to the ending of the government buying subsidy. The tax break pulled forward people who were planning on buying within the next year or so, and without that stimulus...? Mortgage applications for new purchases are now at a 13-year low, and that is with mortgage rates below 5%!

"Chain store sales grew 2.6% in May, better than in April but consistent with the view that spending growth has moderated since the first quarter. Sales were limited by the shift in Memorial Day and adverse weather, particularly in the West. Fundamentals remain too weak to support consistent strong sales growth."

And that last sentence seems to sum up most of the positive data points: the fundamentals are too weak to support robust growth.

We had massive stimulus applied to the economy in 2009 and through the first half of this year. That stimulus is now beginning to fade. Besides keeping us out a major deflationary recession or even depression, it was supposed to get us to a place where consumer spending and GDP growth would become organic and not need further stimulus packages. The Congressional Budget Office just delivered a report on the effects of the stimulus. Let's review.

"... instead of losing 8.3 million jobs between the end of 2007 and the end of 2009, without [the stimulus package] the toll would have been 9.8 million--and instead of gaining 522,000 jobs since the end of last year, we'd have lost another 328,000. And instead of peaking at 10.0% at the end of 2009 and falling modestly since, without ARRA, the jobless rate would have continued to climb to 11.2%. ... taking the midpoint of the CBO's estimates, GDP would have been down 1.1% between 2008Q3 and 2010Q1 instead of up 1.8%."

First-quarter GDP was revised down to 3% last week by the BEA (Bureau of Economic Analysis). But buried in that release was an upward revision to inventories, which accounted for over half of that 3%. At some point inventories become balanced and no longer grow. I have my doubts about negative GDP growth in the third quarter, but a much slower GDP than the consensus 3% seems quite possible.

I continue to be very worried about the large negative contribution to growth that will come from Federal, state, and local governments as they cut payrolls and increase taxes. I think the combined effect looks to be close to 2% of GDP. If we are flatlining by the end of the year, such an outrageous tax increase will shove us into another recession. Let there be no doubt what the cause will be.

The “Good” Leader

2010-06-02T18:32:00.000-07:00

By Lee Thayer - Leadership Virtuosity

This is one of the series of “lessons” that comprise Lee’s Leadership Virtuosity from his book of the same name.

The “good” leader does not ask his people where they want to go. He is like the good friend who refuses to let you default yourself. He tells you what needs to happen, what his or her vision is, and enlists you to figure out how best to get there. If people knew what they wanted, they would have no need for leaders, good or otherwise. We all need someone, as the saying goes – who will make us do what we ought to do.

That is the leader’s role. The good leader is the one who carries that out successfully. It is not enough to entreaty people. It is not enough to try to “motivate” people. It is not enough to praise people for being mediocre. It is not enough to provide adult day-care centers for the working adults of this civilization.

What the good leader does is make it necessary for people to see their duty, and then make it necessary for them to carry out their duty competently. It is not the good leader’s role to make his or her people “happy”. It is her role to make learners out of them, to make it necessary for them to increase their competencies in their own roles.

Leadership virtuosity requires leading people from where they are to where they ought to be, from who they are to who they ought to be. To fail at this is to fail in the leadership role and to betray those people.

A 26-Hour Day

2010-05-16T19:59:00.000-07:00

By Barbara Weltman

It was reported that small business owners worked on average 52 hours a week. This report came out in 2005; it predates social media and other changes that can demand even more time by owners.

New time demands
In 2005, when the 52-hour week was clocked, handling email was considered to be a demanding chore for many owners. Today, on top of email that has not abated, owners are faced with a new array of challenges. These include:

Social media. Managing Twitter, Facebook, LinkedIn and other social media sites can be a time drain.
Blogs and newsletters. Many owners create their own articles and messaging for customers and prospects.
Learning. With growing access to free, top-notch webinars, podcasts, and other learning tools, hours can be drained from production into passive (though valuable) activities such as learning.

Time management
It has been reported that small business owners spend on average 16 hours each week on administrative work but only eight hours on business development. This report does not account for the time needed for social media, blogging, and learning. What’s an owner to do—without changing the laws of nature to have a 26-hour day–and still have a life?

Decide what’s important. Before spending time on social media, develop a strategy and make sure it’s part of your overall marketing plan. What are you hoping to gain from using Twitter? The strategy will dictate the time and effort you’ll put into social media sites. As Benjamin Franklin said: “Time is money,” so even though social media may not have a price tag, there’s still a cost.

Set limits on your time. Schedule time in your week to devote to the activities you deem important. Like responding to email, you’ll have to limit the hours spent on tweeting. Suggestions:

Some owners believe that 9 to 5 are business hours to be spent only on traditional business activities, such as selling and managing staff. Consider using only hours before or after you close to work on social media and other “optional” activities.
Schedule your time. Include in your schedule some phone-free time to think and plan. Jane Pollak in Soul Entrepreneur: 101 Lessons from a Lifestyle Entrepreneur, suggests “single handling”—focusing on one task at a time—to complete a job swiftly with no other distractions.
Use a “to-do” list to make sure you accomplish necessary tasks.
Don’t fill up every waking hour with business-related activities. Be sure to take time off for family, exercise and other purely personal pursuits to avoid business burnout.

Get help. You may not be able to handle all of the things you’d like to do yourself, despite smart prioritizing and scheduling. Instead, engage staff or outsource tasks to those best trained to do what you need to get done. For example, if you normally work alone and enjoy social media activities, consider outsourcing bookkeeping to free up time for what you like to do. Of course, it will usually cost you money to outsource, but the time you save for yourself is worth it!

Catch the Next (Sales) Wave The One After That May Take A While

2010-05-08T17:22:00.000-07:00

Submitted by Chuck Reaves - CSO the Missing Piece in the C-Suite

Okay, so what does this mean for CSOs - Chief Sales Officers? There will be a "wave of sales" as pent-up demand works its way down the various supply chains. "One daisy does not a springtime make" is the rule here. This wave will be followed by others and, we believe, the base level of sales will steadily increase. Make your decisions on the base level, not the wave. Also, we do not know the spacing between waves.

Start selling now. Put greater emphasis on all selling activities.
Have as many people in your organization as possible make sales calls or, at least, sales contacts. (A sales contact is any customer touch that reminds your customers and potential customers of who you are and what you do.)
Give your customer-facing employees basic sales training. We're talking sales 101 here and you or any of your salespeople can develop and teach this material. (Use the DIY sales process explained in my TEC/Vistage programs; a copy of the audio is available through your Chair.)
Look for interim or part-time sales help. Summer interns to assist with sales, seasoned salespeople who are currently unengaged or retired or anyone else who can do some of the light or heavy lifting for you. Try to avoid bringing on full time salespeople if you're unsure how long the wave will last for you.
If you have ever considered using outside sales reps, now may be the time to give it a try. Remember, there are two types of reps: independent reps and very independent reps.
Find ways to shorten your sales cycle in order to capture more of the wave. (Kaizen for Sales can help here.)
Sell what's on the shelf. This is not a time to go after those high-margin one-offs. If you're thinking about inventory or production, consider what will build and deliver quickly with a reasonable margin.

Should You Join a Business Group?

2010-05-04T09:24:00.000-07:00

It can be a lot to get your head around. And that’s why there are so many business groups out there for people who are looking for input, support and guidance. For the overwhelmed business owner these groups can be an irreplaceable resource.

Here is how the groups usually work. They tend to meet once a month and include between six and 15 chief executives. Each meeting is focused on one member’s business, and everything from financials to marketing plans to staffing is reviewed.

To many, the price of these groups may seem prohibitive. But the question is, how many tips, warnings, insights and ideas would it take to make the investment worthwhile? It is hard to imagine sitting through 12 meetings with other business people — including one focused solely on you and your business — without learning something that would be worth that money and more.

There is also something to be said for seeing evidence that you are not the only one who struggles. It can be a confidence builder just to know that all businesses have problems — some that you have, some that you don’t. The most valuable information you learn about problems is about the ones that haven’t hit you yet.

Leadership is a Performing Art

2010-04-14T15:00:00.000-07:00

Leadership is a performing art. What this means is that we are either given roles to play in life, or we forge a role for ourselves. In either case, our lives are a function of how well we perform those roles - not how elevated that role is, but how well it is performed. So, to develop the capacity to be a leader, you have to look at everything that people do or don't do in terms of performance.

The leader intends to be the author of some aspect of the future - to interfere with the unfolding of history, of the story that would have been if that leader had not intervened. Leaders are measured by their performance. If they intend to be successful, they have to measure others by their performance as well.

It is how well an organization performs that counts. It is thus how well the people who comprise the organization perform their roles that counts. A healthy organization is one whose members have assumed full responsibility for shepherding their own lives in the context of the life of the organization. The right measure of any organization is it performance - which depends primarily on the performance of those who comprise it.

Performance is not about play-acting. It is the serious business of becoming fuly and increasingly competent in one's role - individual or organizational. The real qualities of the good life come from becoming increasingly more competent at life, whether at work or elsewhere.

To be a leader, you have to perform well in a leadership role. How your organization performs depends on how the people who comprise it perform. Leaders know that the only measure of performance is performance. by Lee Thayer

Recovery is at Hand - For How Long?

2010-03-21T18:13:00.000-07:00

Now that expenses have been reduced and efficiencies are at all time highs, building the top line sales is paramount to sustain profitability. The current uptick in the economy will further weaken marginal competitors due to lack of bank liquidity. The favorable economic window will be rather short to build market share as reported by Brian Beaulieu, TEC's economist:

Submitted by Brian Beaulieu on Mon, 03/15/2010

Recovery is at hand as evidenced by the rising trend in US GDP and the 12MMA data trend ascent that began in January 2010. New Orders are in a recovery trend and people are spending money. The recovery is sustainable through at least 2010 and we think well beyond this year.

You may have heard this prognostication from us at any number of presentations. So why repeat it now? Because it is important to keep that construct in mind as we go through the next two quarters and are talking about some weakness in the leading indicators. From the S&P 500 Index and rates-of-change to the Purchasing Managers Index rates-of-change to the Corporate Bond Prices trend, there is going to be less-than-stellar news ahead. However, it is not expected to mean that the end of the recovery is nigh upon us.

The subtle weaknesses in the leading indicators cited above (and others) are an indication that the recovery’s 2010 rate of rise will dissipate in 2011. A diminishing rate of rise means growth but at a slower pace for the year.

Our extended outlook is for 2012 to come in stronger than 2011.

So think ongoing recovery. Plan for ongoing recovery. Take risks knowing that better days are ahead.

Management Is Not Leadership

2010-03-06T18:24:00.000-08:00

Contrary to what you might believe, management is not leadership - managers are not necessarily leaders. In other words, managing is not the same thing as providing leadership. We use that term loosely and are thus misled by it. A person who has position power in an organization is not magically transformed into a leader merely by calling him or her one. Some key points to consider:

Managers are appointed by their bosses. Leaders have to earn a leadership role by being endorsed by their constituents. Managers hire subordinates. Leaders have to earn their followers.
Responsibility is not the same thing as leadership. Managers think of themselves as responsible for the outcomes. Leaders think of themselves as responsible for the people who make the outcomes happen. Managers require people to do things right. Leaders lead people to do the right things.

The list of differences is lengthy. But what's most to the point here is the mistaken belief that becoming a better and better manager will eventually turn that person into a leader. This will not happen. Those who do not deeply comprehend those differences will never become leaders, no matter how good they get at managing.

The managerial mindset takes you down a path that is contrary to the path of leadership. Under the influence of this mindset, managers do not think like leaders do. Thus managers do not make decisions or take actions like leaders do.

Managers organize for what's likely or what's possible - leaders for what is unlikely or for what is deemed at the outset to be impossible. Leaders have a lust to experience the world of which they have a vision - beyond the possible.

Remember, it is our mindsets that lead us, that take us where they go. In this case, our conventional Western managerial mindset can be a serious obstacle to the kind of thinking required to pursue a great achievement. Mindsets are bundles of habits - and our habits will take us in the direction they aim, not necessarily in the direction we aim. ~~Lee Thayer

CONSUMER PRICE INDEX

2010-02-23T05:24:00.000-08:00

The Consumer Price Index (CPI) rose to a 15-month high in January. The cause for alarm may not seem so pertinent when you take out food and energy costs. Core CPI barely rose at all. However, food and energy are important factors when considering long-term inflation and with oil prices trending upward, the problems of controlling inflation become very real.

Energy prices spiked 2.8% in the month of January and gasoline rose 4.4%. These numbers will fluctuate from month to month, but there is no denying the overall rising trend in CPI recently. The CPI has risen in 11 of the past 13 months. We at TEC will be watching this trend carefully for future signs of inflation as the economy recovers in 2010. Source: ITR Resources

CONNECTED

2010-02-21T12:48:00.000-08:00

Howard Mann Writes: There are tens of thousands of businesses making many millions a year in profits that still haven’t ever heard of twitter, blogs or facebook. Are they all wrong? Have they missed out or is the joke really on us?

They do business through personal relationships, by delivering great customer service and it’s working for them. They’re more successful than most of those businesses who spend hours pontificating about how others lose out by missing social media and the latest wave. And yet they’re doing business. Great business. Not writing about it. Doing it.

I’m continually amazed by the number of people on Twitter and on blogs, and the growth of people (and brands) on facebook. But I’m also amazed by how so many of us are spending our time. The echo chamber we’re building is getting larger and louder.

More megaphones don’t equal a better dialogue. We’ve become slaves to our mobile devices and the glow of our screens. It used to be much more simple and, somewhere, simple turned into slow.

We walk the streets with our heads down staring into 3-inch screens while the world whisks by doing the same. And yet we’re convinced we are more connected to each other than ever before. Multi-tasking has become a badge of honor. I want to know why.

I don’t have all the answers to these questions but I find myself thinking about them more and more. In between tweets, blog posts and facebook updates.

A COMPARISON OF LEADERS AND MANAGERS

2010-02-05T06:57:00.000-08:00

Leaders Tend to ....	Managers Tend to ....

Stress relationships with others, values and commitment - the emotional-spiritual aspects of the organization Create and articulate a vision of what the organization could achieve in the long run. Move the organization in new directions - unsatisfied with maintaining the status quo. Communicate the purpose of doing things Favor taking risks and making changes Generate a feeling of meaning in work - its value and importance.	Stress organization, coordination and control of resources (e.g., plant, and equipment and people) Focus on the achievement of short- term objectives and goals. Concentrate on maximizing results being from existing functions and systems. Communicate directives, policies and procedures. Fear uncertainty and act cautiously. Enforce fulfillment of agreements and contracts for work.

TO HAVE A THRIVING BUSINESS, YOU NEED BOTH LEADERS AND MANAGERS

Sales Myths

2009-12-26T12:05:00.001-08:00

Myth: January is a Fresh Start

Truth: January Should Be Just Another Month in Your Rolling Twelve Month Plan

By: Chuck Reaves CSP, CPAE, CSO

There is no START or RESTART button in sales!

Where did we get the idea that sales resets every January? Sure, we are working under new quotas and new plans, but business is a continuum, not a series of events.

January 4, 2010 is the day many salespeople will begin ramping up for the new year. Like the first day of school, they will vow to do things differently this time:

Stay ahead of quota
Manage time better
Polish up their skills
Break bad habits
Develop good habits

What will make you different next year?

While your competitors (and peers?) are in their starting blocks, concentrating on what they will do when the starting pistol fires, why don't you simply run past them?

Plan now to continue to run your race at your pace right through the new year.

Here's an example. Imagine you're driving down a multi-lane street and approach a traffic light where there is a car in one lane and the other lane is open. What do you do?

If you're like most people, you slow down in the open lane and try to time your arrival at the intersection with the light turning green. Then - admit it! - you gun the engine and roar past the car sitting in the other lane. You probably have a slight smile on your face as you do.

Salespeople who stop in January to plan their year are like the motorist at the light. Sales professionals who are constantly adjusting their speed and direction are the ones who continuously increase their sales.

How can you do this?

Use this "slow" time to prepare to accelerate. Right now it's more difficult to schedule face time with clients. Use this time to prepare to move better and faster on 1/4/10. This is a great time for planning.
Know the lane you will run in. There is always some low-hanging fruit. In this economy it may not be as juicy or tasty, but it's there. Target what you want in the first thirty, sixty and ninety days.
Fix what's broke while you run. What new skills and tools do you need? How will you attain them in the time left between now and the first of the year?

Communication - Two Definitions to Consider

2009-12-25T16:10:00.000-08:00

By Lee Thayer

Communication - a fairly long word, a complex subject to discuss, and a hard term to define. But allow me to take a "leap of faith" and offer two definitions for your consideration (and, hopefully, comment).

Communication is first of all about interpretations. Nothing comes to us with its meaning inscribed on its back. What something means to you or to me is always in interpretation. As you read this, you are interpreting what I have written. As I wrote it, I was interpreting a lifetime of thinking about communication, of studying it, of researching it. Beyond that, I was faced with how best to package my interpretations so that your interpretations could possibly be of optimal value to you. No mean trick.

Consider that if you and I are to "communicate," each of us has to reach across the chasm that separates us to consider how to deal with the interpretations you might make of what I write.

Communication is also the process that creates (and maintains or changes) the minds we have. And our minds are the sources of all of our ways of "minding" the world - all of our ways of seeing it and dealing with it, and all of our ways of being affected by it and by each other. That process is not self-correcting. By and large, we go where our minds lead us, where and what they make possible - and necessary. It is our minds that control what we see and feel, not us.

Everything of which we are conscious got there via communication with others or with ourselves.

Economist Brian Beaulieu's Advice for 2010

2009-12-09T09:23:00.000-08:00

The macroeconomic recovery developed a little further over the past month even in the non GDP measures of the economy. There was a fair amount of chatter about how government stimulus was driving the third quarter GDP numbers; but we are looking at other data that suggests the stirrings of a real recovery are out there. If you are right-sized, you have found a way to be profitable at today’s reduced levels of activity. Plan on leveraging your 2010 profits into missionary efforts to enable the business to sell boldly where it has never sold before.

This doesn’t mean that everyone starts feeling better in 2010. There are lagging parts of the economy that are likely to stay in recession mode throughout the year. For instance, Commercial and Industrial Loan activity, State & Local Government Spending, and Private Nonresidential Construction all tend to experience economic pain after the general economy begins to heal. This business cycle will be no exception.

Someone in your life for a reason.

2009-11-17T18:45:00.000-08:00

People come into your life for a reason, a season, or a lifetime. When you figure out which it is, you know exactly what to do. When someone is in your life for a REASON, it is usually to meet a need you have expressed outwardly or inwardly. They have come to assist you through a difficulty, to provide you with guidance and support, to aid you physically, emotionally, or spiritually.
CEO roundtables can fill that need and provide support with someone to talk to and address the "lonely at the top" issue CEOs face.
TEC with it’s CEO roundtable format allows a group of your peers into your life whose only interest is in helping you succeed.
The TEC Chair will help you prioritize the things you want to accomplish and help hold you accountable.
It’s said that CEOs come into TEC for business reasons and stay for the personal relationships.

Leadership and Change

2009-11-17T18:42:00.000-08:00

CEOs Use Collaboration To Improve Their Business

2009-11-13T12:29:00.001-08:00

Take a few moments and watch Jeff Joerres, CEO of Manpower, Inc discuss collaboration and its impact on business.

Small Business Survival Rate

2009-10-23T05:19:00.000-07:00

September 9th, 2009

In this tough economy, many small businesses are struggling to survive. The SBA’s Office of Advocacy has released an updated fact sheet shedding light on survival. The data present a picture that is more optimistic than might be expected.

About 627,000 new businesses started up in 2008, despite the declining economy. This was fewer than the number of start-ups in 2007 (664,100), but it still means that people with good business ideas are finding the capital and the means to start up companies.

About 595,000 businesses closed their doors in 2008; this is only slightly higher than in 2007 (571,300) and fewer than in 2006 (599,333). The turnover rate is about 10%, but it’s three times higher for companies with no payroll versus companies with employees.

According to the latest data, about 70% of companies survive for at least two years, and about 51% for five years. The survival rates are higher than those reported last year, when only 67% lasted two years, 44% at least four years, and 31% for at least seven years. The survival rates are similar across states and major industries.

TEC Blog

2009-10-13T11:31:00.000-07:00

This blog is designed for CEOs who are looking and ready to improve. By joining one of my Milwaukee-based TEC groups, CEOs find professional and personal accountability and growth.

Stay current with this blog and read meaningful articles related to Economics, Peer Groups, Leadership and Operational challenges.

Survive and Thrive In This Economy

2009-10-03T19:19:00.000-07:00

TEC economist and business expert Alan Beaulieu of the Institute of Trend Research is generally given credit for accurately predicting when this recession began (the end of 2007), and now predicts that a recovery will be under way by March 2010.

Business owners, he claims, may fail to recognize the early signs of the recovery next year because it won’t directly affect them until mid- to late summer 2010. Your competitive advantage will be to see the recovery early enough to take advantage of its opportunities as a first responder.

Here’s a summary of Beaulieu’s projections:

· Early recovery: March 2010.

· U.S. housing market will continue to decline until late 2009 or early 2010. Prices will stay flat until 2011.

· No inflation by historical standards until 2011-2012.

· Unemployment will peak in early 2010 at 9 to 10 percent.

· Credit conditions will improve a bit in 2010.

· The dollar will remain stable against other currencies through the end of this year.

How to survive and thrive

Beaulieu has eight very specific suggestions for business owners during this period:

1. The middle of 2010 will be a great time to expand your business, taking advantage of cheap prices for new and used equipment, re-negotiated leases, long-term contracts and real estate, and low interest rates.

2. The best year for borrowing will be 2010.

3. Pick up hiring practices now to take advantage of talent that will go off the market later in 2010.

4. Eliminate products and services that are drags on gross margins.

5. Focus on markets that are resilient: alternative energy, “green,” hotel-motel, water, health care, funeral services, alcohol, security, legal services, food distribution, water purification/distribution, education (community colleges), pet products, and leisure.

6. Find ways to market your products in western Canada, Brazil, and Australia–not Russia and China, which are not positioned for short-term growth.

7. On the soft side of management: lead with confidence and courage and take warranted risks. Celebrate victories, no matter how small. Show optimism, be clear about your company’s future circa 2011.

8. Remember that “cash is king” and 12/12 trending of your revenues is paramount.

Peer Groups

2009-08-29T14:08:00.000-07:00

…one of the key pieces of advice that I regularly give entrepreneurs is to “join a formal group of your peers that meets regularly and spend deep time with them.” I don’t mean “industry associations” or “random networking clubs” – I mean things like EO, TEC, or YPO.

When I was a first time entrepreneur, I often thought “I don’t have time for this.” Bullshit – I didn’t have time not to do it. And that continues today even after having been involved in hundreds of companies. Entrepreneurial communities aren’t merely geographic or industry focused – peer groups that build deep, intimate, and long term relationships between the members play a key part in the process of entrepreneurship.

–Brad Feld Early stage investor and entrepreneur Technology Review

Company Tune Up

2009-05-14T10:20:00.000-07:00

Annual Review.
While my TEC groups perform this review at the beginning of the year, given the state of the economy it is prudent to revisit this again.
Situation Analysis: (The Current Reality)

Lessons learned in the past year are:
What decisions would I have changed in the past year:
How successful have I been in achieving my goals and objectives?

Strategic Analysis: (Where, What, Why)

What is my vision? (This will usually embrace all elements of your business and should be consistent with your personal goals and values.)
Our corporate mission is:
Our values and behaviours are:
Forces driving change in our industry are:
Our three most direct competitors are:
Our major strengths are:
Our major weaknesses are:
These major threats confront us:
These major opportunities are available to us:
Our critical success factors that have made us successful to date are:
When this review is completed, running this past a peer group can result in a very dynamic discussion.

Leadership – by Lee Thayer

2009-04-28T18:45:00.000-07:00

Define a word, and you have launched or facilitated what you will do in its name. A good example is the word “leadership.” Whatever it means to you will predict what you will do in its name. It will predict to how you will interpret the “leader’s” performance. And it will predict to how you interpret what others say about “leadership.” If you use it as a synonym for “management,” then you may use the two words interchangeably. If you don’t know exactly what someone does, then that person may be a “leader” because he or she is influential.

A president might be viewed as a “leader” for no particular reason other than that we attach that label to him or her. Now, there may still be two or three leader-mongers out there who don’t or can’t see leadership as a performing art. Leadership is a role, not a person. Thus those few may miss the only two important criteria for judging a “leader’s” performance in that role:

1. How well the incumbent plays the role he or she got into; and

2. What the residual consequences were of how he or she played the role.