Analysis for Managers: The Most Important Measure

Analysis for Managers: The Most Important Measure

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Today’s post is to help you as a leader, manager, entrepreneur, family member and/or individual to perform perhaps the most important analysis of them all. And it begins with a question posed by management scholar and innovation strategist, Clayton Christensen: How will you measure your life?

After all is said and done what is truly most important to you? What are your deepest goals and desires? When you look back, what will be your measure of personal success?

No doubt, the vast majority would put family, relationships with spouses and children, faith, values, positive impact in the community, etc. as their measures of success. Now the question is, how well do you allocate your personal resources to reflect those desires?

When you analyze a company, you don’t look at it in terms of its intentions, you look at it in terms of how it actually spends it’s time, money, physical and human capital. Is it investing in new products, markets, technology or talent? Or is it grinding at the gears chugging along without much current investment in hopes of finding another organization to purchase?

Now what about you? As you look back on today, how did you spend your resources? Did the investments you made today align with your deepest goals and desires?

If not, it’s never too late to reallocate your resources and decide how you’ll measure your life.

This may be the most important executive decision you ever make!

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Analysis for Managers: Industry Analysis

Analysis for Managers: Industry Analysis

 

The next important analysis to undertake around your business is an industry analysis. This is where we look at the entire landscape of the economic branch in which your business operates. To do this we’ll use a well-known and effective tool, called the “Porter’s Five Forces,” which helps a manager to understand the current and future profitability outlook of his/her business. Figuratively and literally, each of these “forces” presses/suppresses profit margins within a given industry.

So, grab some paper, a notepad, or a open new Word doc and let’s answer some questions.

  • Industry rivalry—How intense is the competition in your industry? Do you feel like you’re “one-of-a-kind” or are you working hard to get others’ customers?
  • Threat of substitutes —How easy is it for a customer to substitute your product or service for another and still get the job done?
  • Bargaining power of buyers—Do the buyers in your business hold the big stick?
  • Bargaining power of suppliers—Or do the suppliers hold the big stick?
  • Barriers to entry—How easy is it for someone to enter into your line of work? (i.e. start doing what you’re doing?)

Other important questions to ask include:

  • How is business changing in my industry? i.e. more online, demand for speed, lower prices, etc.
  • What do I see my customers wanting in 10 or 15 years?
  • Why are these changes occurring?

As you consider these questions, it’s essential to flex that analysis muscle and keep asking, why? Doing so helps us identify the true and fundamental trends that are occurring in our industries.

Industry analysis is a higher level and more future-centered analysis than others, and for that reason it is vital. A manager that analyzes his/her industry, looks to the future and makes investments/changes as a result is much more likely to stay profitable!

All our best in your journey to continue to seek future success.

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Becoming a Coach

Becoming a Coach

 

Thinking back to the most impactful people in your lives, who have they been?

For many, it’s family members, friends, bosses and undoubtedly–sports or other coaches. Coaches in particular tend to have a special place in peoples’ hearts as these coaches often expected the most of of them and gave them the most time and energy.

Likewise, it could be said that any good teacher, mentor or influencer is a “coach.” Today, we’re going to discuss Joseph Weintraub and James Hunt’s four reasons managers should spend more time not only receiving coaching but being a coach.

First: Coaching is essential for achieving business goals

Weitraub and Hunt in their May 2015 HBR article discuss how mangers that invest time in coaching see that coaching is not a “nice to have” aspect in the job force but a “must have.” They understand that talent needs to be worked, molded and grown and that talent is what will drive business results.

 

Second: Coaching can (and should be!) enjoyable

Few things are as rewarding as watching things grow. Think about it. Parents raising children, a gardner growing flowers, a businessperson growing their customer base–all rewarding, in their own right, because of growth.

 

Third: Coaching is satisfying for the curious

The writers share : “Coaching managers ask a lot of questions. They are genuinely interested in finding out more about how things are going, what kinds of problems people are running into, where the gaps and opportunities are, and what needs to be done better.” Learning about others and how to help them solve their problems can be immensely satisfying to the curious.

 

Finally: Coaching establishes connection

It is human nature to desire to be connected. And coaching is a fantastic way to facilitate it. As a coach shows empathy and works with a coachee, deep and lasting relationships can be formed; these can be something that grows to be more than a business transaction. These relationships can become something of value that creates bonds and builds a more meaningful sense of humanity in the workplace.

 

Overall, becoming a coach is a fantastic way to give back to those who have coached you. There is no sum of money and no praise worthy enough to repay a coaching debt, but becoming a great coach is perhaps the best and most desirable way to show appreciation to those who have gone before.

 

Now it’s your turn. Who do you know that needs a coach? Reach out, it’s time to give back!

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Leadership Series: Your Legacy

Leadership Series: Your Legacy

 

18 articles later, we’ve reached the final post in the Leadership Series. We hope you feel empowered and inspired to build your legacy as a leader.

In our first post of the Leadership Series we wrote the following:

“What is the one skill that would dramatically change the quality of your life? It might be communication, empathy, diligence, financial acumen, or perhaps a technical skill like programming or product engineering.

But what if we told you that there is one skill that is the sum of all other skills–the culmination of them all? Well, there is. And it’s LEADERSHIP.”

So, do you believe it now? Do you see how leadership is the key? We most definitely do and that’s why we spent nine months with leadership as the focus.

But now we’d like to end this series with one last story. The story of Alfred Nobel.

In 1867, Alfred Nobel, a Swedish scientist, invented Dynamite, a substance found to be extremely useful in excavation, mining and railroad construction. However, it wasn’t long before this explosive and dangerous compound began to take interest in military applications, where it was used in warfare during the Spanish American War.

“When Nobel’s brother died, a newspaper ran a long obituary of Alfred Nobel, believing that it was he who had passed away. Thus, Nobel had an opportunity granted few people: to read his obituary while alive. What he read horrified him: The newspaper described him as a man who had made it possible to kill more people more quickly than anyone else who had ever lived.

At that moment, Nobel realized two things: that this was how he was going to be remembered, and that this was not how he wanted to be remembered (source).”

After feeling the pain of reading what legacy he was on track to leave, he made a change by funding something that honors superior men and women who have made outstanding to the world. Today, Alfred Nobel is best known as the founder of the Nobel prize.

Imagine you were reading your obituary. What would it say? How would you be remembered? Would it talk about how your were ruthless, but “got the job done?” Or that you were a workaholic who brought his business from nothing to greatness, only while leaving his family behind?

Make the change today. You can “rewrite” your own obituary. You are the leader of your legacy.

We believe in you and are grateful for your leadership. Thank you for leading our world to become a better place.

 

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Leadership Series: Negotiating

Leadership Series: Negotiating

 

“Negotiating? Well, that’s not for me. I’m not a salesman, lawyer or politician. Surely negotiating isn’t important in leadership.”

The authors or “Getting to Yes” disagree. Their best seller starts:

“Like it or not, you’re a negotiator. Negotiation is a fact of life. You discuss a raise with your boss. You try to agree with a stranger on a price for his house.” You negotiate with your co-workers on where capital investment should be allocated and what new products to deploy. Or, to provide two more examples from Getting to Yes, perhaps you’re trying to mutually agree with your spouse on where to go for dinner or with you kids on what time they should go to bed (not so easy when the other party’s position is “never!“)

No matter in what situation you find yourself negotiating, the situation should not end up as a positional “haggle-fest.” An example of which would be opening up with a low ball offer that’s countered with a high ball rejection, only to whittle its way to somewhere in the middle or to end in no agreement at all. Just bitter feelings.

That’s when the authors of Getting to Yes suggest using “principled negotiation.” Principled negotiation is focused on four main things: 1) People – separating the people from the problem; 2) Interests – focusing on interests, not positions; 3) Options – developing multiple options for mutual gain, and; 4) Criteria – insisting that the result be based on some objective standard. Following is a brief discussion on each.

People:

Negotiations are always centered around some sort of problem but the person on the other side of the table is not that problem. We must neither be soft and weak in fear of hurting a relationship, which usually ends in feelings of unfairness on the part of the party who gives up most, nor should we take a brash, harsh, bullying approach. We must separate the people from the problem and address them both separately.

 

Interests:

When we focus on what both parties are interested in, we don’t need to take ego building positions that give a sense of winning or losing to each side. We can focus on mutual benefit and gain. And this step is essential to frame the next principle.

 

Options:

Rarely is there only one “perfect” option to agree upon. So, invent multiple and discuss them with the other party. This helps both sides know that the best option for mutual gain has been searched for and selected.

 

Criteria:

Finally, the result can’t be based on feeling or what is perceived to be fair but should be based off of some sort of what the authors call “objective standards.” This might be determined by “market value, expert opinion, custom, or law” or any other number of criteria that remove personal opinion and introduce facts, evidence or support.

 

Now, armed with these principles, you’re better prepared to separate the people from the problem, focus on the interests of both parties, come up with multiple options and base your negotiating on objective criteria.

Good luck and we wish you the best this holiday season.

Merry Christmas and Happy New Year!

 

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Leadership Series: Emotional Intelligence

Leadership series: Emotional Intelligence

Image result for emotional intelligence

 

Today’s topic will be introduced by a thought provoking fact: people with average IQs outperform those with the highest IQs 70% of the time (source).

Wait, you got that backward, right?

So, if it isn’t smarts that drives success, what is it?

Research suggests that it’s emotional intelligence.

Emotional intelligence is “the capacity to be aware of, control, and express one’s emotions, and to handle interpersonal relationships judiciously and empathetically” (source).

This is an indispensable capability of any true leader. Leaders inspire, uplift, understand, guide, build and grow. They discover the natural strengths of others and invest in their success. And all of these things require emotional intelligence to make happen. A leader must be aware of his/her position and how they can help others along and know the delicate differences in those they work with.

If you don’t feel like you’re a very emotionally intelligent person, don’t worry, it’s not a “have or have not” like many might describe IQ. Emotional intelligence can be developed.

Here are two suggestions that you can start applying today:

 

Become self-aware

When you start to feel emotionally heightened, ask yourself, “What emotion am I experiencing.” Label the emotion with a specific term (i.e. I’m feeling…sad, frustrated, deceived, excited, happy, nervous, etc.) and accept the fact that you feel that way. At the same time, realize you don’t need to act out negatively (if you’re experiencing a negative emotion) according to how you’re feeling. As you do this you will feel empowered to address your emotions and control your own behavior. Denying the way you feel often evokes a more heightened sense of the emotion

 

Become aware of others

This step requires empathy, or “the ability to understand and share the feelings of another” (source). The ability to step back, put yourself in someone else’s shoes and feel how they feel is incredibly enabling and ennobling. It will help you to know what others need and feel empathically for them. This doesn’t mean that you’ll be soft on them, although you may need to, but it means that you’ll better address the situation with a more personal understanding because you have seen the situation from their eyes. You’ll then know if you need to be firm and direct or soft and encouraging.

 

As you begin to become self-aware and aware of others, you will develop emotional intelligence. And as you develop emotional intelligence you will become a more effective leader. We wish you the best in your pursuit of becoming the best you can be!

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Leadership Series: Change Management

Leadership Series: Change Management

 

John F. Kennedy once taught an important principle:

“Change is the law of life. And those who look only to the past or present are certain the miss the future.”

Inviting change, handling change and perhaps most importantly leading change are essential capabilities of influential leaders. So today, we’ll discuss five principles of what business strategists and behavioral economists have called, “Change Management.” See more at http://www.strategy-business.com/article/rr00006?gko=643d0

 

  1. Address the “human side” systematically

When change occurs, people react. Some react by embracing, others by waiting for others to move first and others reject change altogether. For this reason, it’s essential that leadership has a structured release of the change plan resulting implications across the board.

 

  1. Involve every layer

Since organizational change requires support at all levels, it’s essential to identify key leadership and individuals at all levels of the organizations to initiate and sustain execution of changes from the top down. These people will serve as role models to inspire those near them and be a fast resource for trust and communication.

 

  1. Make the formal case

People will not likely change unless they know why they should. Be sure to clearly and simply answer the three fundamental questions: What is being changed? How are these changes going to affect me and the organization? And, why is this change necessary. Always remember, “The ‘what’ informs and the ‘why’ transforms” (Dieter F. Uchtdorf).

 

  1. Create ownership

When key leaders and individuals at every level begin to embrace change, it’s vital that there is more than mere agreement with the new direction—there must be ownership. As senior leaders seek for others to own the new organizational changes, these change owners begin to expand their influence and support others that are struggling and need support throughout the process—people that leadership won’t readily be able to reach.

 

  1. Speak to the individual

Someone once said, “Organizations don’t change, people do.” This is the critical element of change management. No matter how “perfect” a strategy may be or how much capital has been invested, an organization will not change, unless the people do. With that in mind, it must be understood that people cannot be changed, they can only be invited or inspired to do so. The actual change must come through conscious decision and constant effort by the thoughts and actions of those that make up the organization. Focus on the individual and you will find the source of change.

 

In review: have and communicate a plan, involve people at all levels, teach the “why,” create ownership and speak to the individual. As you do so, you will have the depth and breadth of leadership needed to move forward into the future.

We hope this post has been insightful and inspiring and wish you the best as you and those in your organization embrace change, “the law of life.” We look forward to your success!

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Leadership Series: Storytelling

Leadership Series: Storytelling

A key role of any leader is to inspire. A very effective way to inspire is through storytelling.

Think of some of the most compelling accounts from history and how they’ve shaped us. The amazing tale of the forefathers and how they claimed the independence of the United States as the pilgrims immigrated across the ocean and began a new life. The great leadership of George Washington, Abraham Lincoln and others and their incredible histories. All of these stories engender in US citizens a spirit of values, self-reliance and independence.

Now think of your family history. What stories shape your core beliefs and have motivated you to become who you are?

Now, what about entertainment? The vast majority of the most famous movies and books of all times, all contained incredible stories.

But storytelling isn’t just for history and entertainment. It has great business application as well.

Let’s consider what’s known as “The Hero’s Journey.” This is the pattern that makes the best stories come to life. Below is an image detailing this process.

 

For a more detailed understanding of each element, see the website linked here.

So how can this apply to you as a business leader? Consider the story of your company. Undoubtedly you lived in an ordinary world, perhaps working for someone else. But then you had the idea put on your mind that you could “do your own thing” and call your own shots. You thought through the idea but became apprehensive about the uncertain income. All until you decided to call a trusted friend, adviser or mentor who encouraged you to take the leap, and so you do. Since then you’ve run into trials, you’ve found business partners and you’ve discovered your competitors.

Then perhaps you had to discover something more to grow you company and make an investment that was either going to make or break the business. Lo and behold, just before losing it all, that investment becomes the pivotal part of your company and the key to success in the future. You now continue a newly equipped enterprise with the wisdom to continue growing.

This is a model for telling any story and it will communicate your stories to your employees, customers and stakeholders.

We encourage you to use this model throughout presentations, in your marketing or in your day to day with those you work. It works and you’ll see the results!

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The Measuring Stick: Determining the Strength of Your Workplace

 

Image source: tothministries.org via Google search

Revenue, profit, sales volume – that’s easy enough for us to measure. But what about employee morale? Company culture? A manager’s effectiveness? Overall strength of a workplace? Now that’s tough. But, the Gallup Organization believes it’s possible, and so do I.

Over the course of 25 years Gallup studied these and other questions by interviewing over a million employees and gathering their answers to hundreds of similar questions. In the end, Gallup ran an in depth and extremely complex statistical analysis that ended up giving them the 12 questions that most strongly indicated the overall strength of a workplace. Here they are:

1. Do I know what is expected of me at work?

2. Do I have the materials and equipment I need to do my work right?

3. At work, do I have the opportunity to do what I do best every day?

4. In the last seven days, have I received recognition or praise for good work?

5. Does my supervisor, or someone at work, seem to care about me as a person?

6. Is there someone at work who encourages my development?

7. At work, do my opinions seem to count?

8. Does the mission/purpose of my company make me feel like my work is important?

9. Are my co-workers committed to doing quality work?

10. Do I have a best friend at work?

11. In the last six months, have I talked with someone about my progress?

12. At work, have I had opportunities to learn and grow?

 

Interesting, right? Now, these questions are in hierarchical order, meaning that number 2 is basically irrelevant without number 1 but once number 1 is at a solid rank (on a scale of 1-5) of 4 or 5 then you can move on to improving the following scores.

 

At first sight, some of these questions may seem either too simple (perhaps # 2) or a little irrelevant (perhaps # 10). But think about it. Can you imagine being a construction worker that doesn’t even feel like his nail gun works right? How excited is he going to be to get up and frame a house, knowing that half the day he’s going to be fighting with the compressor? Or what about the graphic designer who’s computer freezes all day long? And imagine the amount of commitment and low amount of turnover you’d have if each employee felt like he had a best friend at work. He would be happy to go each day.

As always though, remember that there is an order to these questions, the employee that has a best friend at work but doesn’t feel like she gets to do what she does best every day, may end up with a lack of productivity. Similarly, that employee may be bought into the vision of the organization (# 8) but may feel like she has no idea what is expected of her every day (# 1). Gallup recommends that we as managers start with the first 6 questions and then move up the ladder from there.

As always, here at GQ Law, we know what you expect of us, we have the resources and it’s what we do best. We look forward to helping you take care of all of your tax and legal questions, so don’t hesitate to call. We’re committed to quality work. Hope you’re enjoying the Summer!

 

For a more in depth review of this topic, see, “First, Break All the Rules” by Marcus Buckingham and Curt Coffman.

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Gifts for Clients and Associates: Holidays as a Business Owner Part 2

Gifts for Clients and Associates

With an ever increasing number of holiday events, plays, parties, dinners, etc, staying on top of well wishes at the office can easily be put on the back burner.  Business owners, use the quick tips and ideas in our two part Small Business Holiday series to wow your clients and associates this season.
In part one of our series we gave you great tips for your holiday cards. Today, we’ve got some ideas to make gift giving a breeze.
 
 
Part 2: Holiday Gift Ideas for Clients and Business Associates
1. Gift Cards– Its hard to go wrong with a gift card. According to Gift Card Granny, gift cards have been on the top of Christmas wish lists since 2007. Think restaurants, electronic stores, iTunes or even Visa gift cards for maximum flexibility. Visit Granny’s site for a list of the most requested gift cards.
2. Gift Baskets– Stick with edible items. Don’t assume that women want baskets filled with lotions and soaps. Give something your associate can share with their employees and/or family. Don’t be afraid to think outside of the basket and go with arrangements of fruit (Edible Arrangements) or cookies (Cookies by Design)
ediblearrangements.com
3. Chocolates– There are many options to choose from, you can even order boxes online from many chocolatiers. Think Godiva, Lindor, Whitmans (Russell Stover), Ghiradehli, etc. Chocolates from See’s Candies are a GQ Law favorite.
www.sees.com

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