Even things as important as cash flow, profit, growth, continuous improvement, and innovation can become tiresome if harped on to excess. So we seek a certain balance, then find even the concept of maintaining balance can become monotonous.
Whether or not we have a psychological need for cycles, they are everywhere. Fashions come and go because sameness is stifling, variety being the spice of life. Vicissitudes keep us on our toes. Nature, replete with cycles, always exhibits natural tensions, pros and cons, ever present opposition in all things, ebbs and flows in various forms, all giving rise to opportunities. So it is with markets.
Maintaining, if not improving, market and business health and well being is a practical necessity of business life, to survive, much less grow through the many life cycles of business. Choices to follow a product or business life cycle without innovation lead to business failure, death or recycling. Innovation is creation of a new cycle, a new wave, new growth potential. Many innovations fail, but no innovation, like no seeds and no cultivation, yields no harvest.
Product life cycles are well known, well studied, and even service life cycles are familiar in the world of marketing. The cycles of the other elements of a company's business model may be less familiar, but are no less real. Contracts make an attempt to counter cycles, but ultimately cyclic pressures, like all market forces, will be manifest in some way, like all laws of nature.
Business survival, much less thriving in hard times, requires business model innovations that produce more cash flow and profit improvement, the life force, life blood, of business. Pricing is often paramount, but any of the factors in the equation, any of the ingredients in the recipe, any of the elements of the business model can be problematic, and therefore opportunity-laden.
And business model innovation doesn't have to be as radical as Google, WalMart, wireless communications or online stores. Sometimes seemingly minor tweaks can open doors to exciting new horizons. The key is to open minds to see a bigger picture of possibilities and fail fast in figuring out what's going to fly.
Wednesday, December 31, 2008
Tuesday, December 30, 2008
The All Important Business Model
An old friend who has banked tens of millions of dollars over the years from a pretty simple business likes to say he's never had a so-called business model, adding that all he did was take care of customers. While talk about business model can be misguided, all businesses have a model, elements of which make them by definition a specific business. My friend studiously served his customers, but always profitably for consistent and very meaningful cash flow. His industry is very depressed right now, but he still produces positive cash flow. He has a good business model which he understands very well and executes wisely.
Business model elements usually start with potential customer need which helps define product or service, then goes to demand which helps define volume and price, which multiple into sales or revenue. But the business model importantly includes cost which yields gross margin, then all other expenses required to incur the costs and produce the sales, which combine to produce the income or profit and that all important cash flow. I'll never forget hearing Al Shugart talk about cash being more important than your mother.
Add capital requirements and necessary measures of ROI and you have the essential elements of the business model or business formula or recipe for success. Any one element or factor can make all the difference for good or ill, but it is ultimately the combination that counts most. The cost factor includes the pivot point of supply. Volatility of supply volume or cost, like volatility of demand volume or price, can create major challenges to overcome. Quality of product and service relates to both cost efficiencies and price/demand effectiveness.
The ultimate expression of the elements of the business model is the vision of the company strategically instilled into the minds and hearts of an enlightened leader-inspired self-directed organization.
Business model elements usually start with potential customer need which helps define product or service, then goes to demand which helps define volume and price, which multiple into sales or revenue. But the business model importantly includes cost which yields gross margin, then all other expenses required to incur the costs and produce the sales, which combine to produce the income or profit and that all important cash flow. I'll never forget hearing Al Shugart talk about cash being more important than your mother.
Add capital requirements and necessary measures of ROI and you have the essential elements of the business model or business formula or recipe for success. Any one element or factor can make all the difference for good or ill, but it is ultimately the combination that counts most. The cost factor includes the pivot point of supply. Volatility of supply volume or cost, like volatility of demand volume or price, can create major challenges to overcome. Quality of product and service relates to both cost efficiencies and price/demand effectiveness.
The ultimate expression of the elements of the business model is the vision of the company strategically instilled into the minds and hearts of an enlightened leader-inspired self-directed organization.
Empowering Vision
Knowing clearly what you want to say greatly affects your utterance. Knowing clearly where you want to go and what you want to be drives your strategy - how you plan to get there.
Clearer vision not only helps produce clearer strategy, but unifies and intensifies confidence in both strategy and execution. Clear and vivid vision leads to more internalized imagery which taps inner emotional motivation. When you can really taste what you're after, you're even more likely to work to keep all systems aligned, to make progress more efficient and success more likely. The more everyone is on the same page, seeing and tasting the same vision, and tuned in for more effective teamwork, the more likely the success, by some combination of better execution and crucial changes in strategy.
Vision development, clarification and internalization take time, but that time is well spent when it improves buy-in, motivation, productive creativity, and overall enthusiasm and resourcefulness for vision accomplishment. The more vividly the vision is instilled into every member of the organization, the more vibrant and productive the performance.
Many common, but unnecessary, time wasting, resource-consuming problems never appear as greater overall alignment is achieved to take the shortest distance between two points to hit bulls eyes step by step until the vision instilled within is brought to reality.
Clearer vision not only helps produce clearer strategy, but unifies and intensifies confidence in both strategy and execution. Clear and vivid vision leads to more internalized imagery which taps inner emotional motivation. When you can really taste what you're after, you're even more likely to work to keep all systems aligned, to make progress more efficient and success more likely. The more everyone is on the same page, seeing and tasting the same vision, and tuned in for more effective teamwork, the more likely the success, by some combination of better execution and crucial changes in strategy.
Vision development, clarification and internalization take time, but that time is well spent when it improves buy-in, motivation, productive creativity, and overall enthusiasm and resourcefulness for vision accomplishment. The more vividly the vision is instilled into every member of the organization, the more vibrant and productive the performance.
Many common, but unnecessary, time wasting, resource-consuming problems never appear as greater overall alignment is achieved to take the shortest distance between two points to hit bulls eyes step by step until the vision instilled within is brought to reality.
Organization Must Align With Strategy
Organizations develop, carry out, report on, and evaluate the strategy needed to achieve the vision of the business model. Strategy includes the high level overall and necessarily evolving plan that drives all subservient plans intended to accomplish the business objectives fulfilling the vision of fully executing the business model.
Strategy can be sufficiently defined only if the vision of desired outcomes is sufficiently defined, and ultimately must take into account currently de facto realities of organization and even leadership.
Aligning organization with strategy in an always imperfect and ever changing real world is a practical ongoing iterative process, as strategy logically dictates organization, but inevitably evolves out of existent organization and perspective.
Superior strategies executed to perfection is the endless quest, but as in so many things, there is a certain amount of choice and accountability associated with strategy and its execution via organization. Winners of many competitions have resulted from both superior strategies more weakly executed as well as weaker strategies more perfectly executed.
While even the best laid strategies and plans are subject to change, the competitive difference can be decisive, wise discernment whether to persevere to execute better or to change strategy. An enlightened leader-inspired self-directed organization will continuously strive to be learning and gaining quickly from experience how to modify to improve both strategy and execution.
Strategy can be sufficiently defined only if the vision of desired outcomes is sufficiently defined, and ultimately must take into account currently de facto realities of organization and even leadership.
Aligning organization with strategy in an always imperfect and ever changing real world is a practical ongoing iterative process, as strategy logically dictates organization, but inevitably evolves out of existent organization and perspective.
Superior strategies executed to perfection is the endless quest, but as in so many things, there is a certain amount of choice and accountability associated with strategy and its execution via organization. Winners of many competitions have resulted from both superior strategies more weakly executed as well as weaker strategies more perfectly executed.
While even the best laid strategies and plans are subject to change, the competitive difference can be decisive, wise discernment whether to persevere to execute better or to change strategy. An enlightened leader-inspired self-directed organization will continuously strive to be learning and gaining quickly from experience how to modify to improve both strategy and execution.
Leadership Drives Organization
Leaders organize.
Why?
To bring about desired results.
How?
By gathering insights, clarifying desired outcomes, mapping out plans for action to be taken, breaking down responsibilities, recruiting and qualifying whatever help is needed, making assignments by delegating authority and discretion with responsibility and accountability, and incentivizing, training, and supporting in every needed and possible way to accomplish desired outcomes. Ongoing leadership maintains or increases the momentum of improvement.
The style and quality of leadership determines whether the state of the organization improves or declines and to what degree. The quality of the organization in turn influences the level of attainment of desired outcomes.
Organization must be "improved as required by ever-changing circumstances" to keep up, much less increase, the momentum of improvement of outcomes, especially to thrive in hard times.
Organizations improve as new insights are more effectively gathered and evaluated, as successive desired outcomes are more clearly defined, and as plans are better updated and refined, as well as responsibilities, recruiting, qualifying, assignments, delegation, incentives, training, and support needed and possible to accomplish successive desired outcomes. This is a process of ongoing organizational development.
Leader inspired self-directed organizations working in harmony and unity can achieve powerful improvement if enlightened by business knowledge and wisdom.
Failure to inspire and nourish enlightened self-directed organizations can lead to weak and diseased organizations. Adversarial bureaucratic growths like labor unions can debilitate a business organization like cancer. Improving the health and well being of any organization is required to thrive in hard times.
Why?
To bring about desired results.
How?
By gathering insights, clarifying desired outcomes, mapping out plans for action to be taken, breaking down responsibilities, recruiting and qualifying whatever help is needed, making assignments by delegating authority and discretion with responsibility and accountability, and incentivizing, training, and supporting in every needed and possible way to accomplish desired outcomes. Ongoing leadership maintains or increases the momentum of improvement.
The style and quality of leadership determines whether the state of the organization improves or declines and to what degree. The quality of the organization in turn influences the level of attainment of desired outcomes.
Organization must be "improved as required by ever-changing circumstances" to keep up, much less increase, the momentum of improvement of outcomes, especially to thrive in hard times.
Organizations improve as new insights are more effectively gathered and evaluated, as successive desired outcomes are more clearly defined, and as plans are better updated and refined, as well as responsibilities, recruiting, qualifying, assignments, delegation, incentives, training, and support needed and possible to accomplish successive desired outcomes. This is a process of ongoing organizational development.
Leader inspired self-directed organizations working in harmony and unity can achieve powerful improvement if enlightened by business knowledge and wisdom.
Failure to inspire and nourish enlightened self-directed organizations can lead to weak and diseased organizations. Adversarial bureaucratic growths like labor unions can debilitate a business organization like cancer. Improving the health and well being of any organization is required to thrive in hard times.
Monday, December 29, 2008
Flight attendant's CEO
In a recent private conversation, a flight attendant for a large airline told me that her company's CEO was very secretive and selfish, more concerned about his own "outrageously high income" than the company.
In contrast, this flight attendant glowingly praised Southwest Airlines as open, honest, friendly, and fun, such a refreshing contrast to the sour attitudes typical of her own company. She marvels at how Southwest Airlines people let her know they are well treated by their CEO and management. She is quick to make the connection of cause and effect in comparing Southwest Airlines to her own company. No mystery about it.
The CEO's choice of leadership style, the choice between dictatorship and stewardship, and between self-interest and the general well-being of the company makes a huge difference. Leaders more genuinely concerned about the well being of the others in their stewardship garner the respect and support needed especially in hard times. Spirited team work and enthusiasm is a key to thriving long term, as it fosters a working atmosphere of "we're all in this together, so let's all do our very best for the sake of all concerned."
In contrast, this flight attendant glowingly praised Southwest Airlines as open, honest, friendly, and fun, such a refreshing contrast to the sour attitudes typical of her own company. She marvels at how Southwest Airlines people let her know they are well treated by their CEO and management. She is quick to make the connection of cause and effect in comparing Southwest Airlines to her own company. No mystery about it.
The CEO's choice of leadership style, the choice between dictatorship and stewardship, and between self-interest and the general well-being of the company makes a huge difference. Leaders more genuinely concerned about the well being of the others in their stewardship garner the respect and support needed especially in hard times. Spirited team work and enthusiasm is a key to thriving long term, as it fosters a working atmosphere of "we're all in this together, so let's all do our very best for the sake of all concerned."
Wednesday, December 24, 2008
Christmas Eve -- "The Nativity" and Economics
My thoughts turn to current political-economic affairs after watching “The Nativity” – where taxes and choice are featured dramatically in this revered story.
Taxes are by definition compulsory and oppressive. In contrast, profit-based businesses and other organizations and individuals that either supply or encourage the sale of products or services are subject to choice, not compulsion. Taxes are compulsory means which conflict with individual choice.
Using other people’s money, even to "do good," introduces the hazards of conflicts of interest of third-parties (politicians, bureaucrats, intermediaries, etc.) whose interests may not be aligned with the first party (with excess to impart) or the second party (with needs to fill).
Third parties have a fiduciary responsibility, and enticements to violate trust in pursuit of self-interest are sufficiently intense that avoiding even the appearance of impropriety is crucial to protecting the interests of 1st and 2nd parties.
Profit-based businesses and other organizations and individuals that provide products and services without compulsory means, sharing rewards equitably, and imparting of their excess to those in need for prices voluntarily and willingly paid are economically productive participants in a free market economic system.
Private profit-based businesses have immense potential for good, as needs are identified and filled for mutual benefit, at prices paid by willing buyers and received by willing sellers. As soon as taxes are introduced, the pricing mechanism is distorted as the tax either makes the price higher than the buyer would have preferred, or forces the seller to sell for a price lower than the seller would have preferred.
Taxes are typically justified to make expenditures for the public good. The value of the public goods depends upon usage by consuming members of the public. Since usage varies according to circumstances, the cost of public goods is invariably distorted for particular individuals whose usage deviates significantly from the mean.
The alternatives to taxes include usage fees, as in park fees, toll bridges, toll roads, or the voluntary choice of private benefactors who voluntarily gift specific items of infrastructure for the public good, or fund projects for promotion. The immense danger of taxes is the tendency to increase the size government and the oppressiveness of compulsory dominion.
The laws of supply and demand and free market competition work to achieve optimum pricing over time. If the supply is too low in relation to demand, resultant prices will be higher until supply is increased or demand is reduced. If the price is “too high,” actual volume transacted will either be artificially low as demand is voluntarily unfilled or competition will add to supply to meet demand and prices will lower accordingly. If the supply is too high in relation to demand, prices will be lower to reduce supply.
Free market pricing of supply in relation to demand is superior to any other approach to pricing. Pricing set or affected by any third party will necessarily be less efficient, less fair, and less precise than pricing set by and between two voluntarily agreeing mutually benefited parties, one selling and one buying.
Providers, producers, or sellers do what they do to meet their needs by producing profit, which is simply income remaining after all costs and expenses. They need that income as a quantity of medium of exchange to acquire other things they need.
The incentive to produce profit or income is sometimes erroneously called “greed.” The incentive begins with justifiable need or desire in the pursuit of self-reliance. It can become greed or avarice in the extreme.
Efforts to share incentives for the general good and betterment of all participants work to minimize individual avarice.
Taxes are by definition compulsory and oppressive. In contrast, profit-based businesses and other organizations and individuals that either supply or encourage the sale of products or services are subject to choice, not compulsion. Taxes are compulsory means which conflict with individual choice.
Using other people’s money, even to "do good," introduces the hazards of conflicts of interest of third-parties (politicians, bureaucrats, intermediaries, etc.) whose interests may not be aligned with the first party (with excess to impart) or the second party (with needs to fill).
Third parties have a fiduciary responsibility, and enticements to violate trust in pursuit of self-interest are sufficiently intense that avoiding even the appearance of impropriety is crucial to protecting the interests of 1st and 2nd parties.
Profit-based businesses and other organizations and individuals that provide products and services without compulsory means, sharing rewards equitably, and imparting of their excess to those in need for prices voluntarily and willingly paid are economically productive participants in a free market economic system.
Private profit-based businesses have immense potential for good, as needs are identified and filled for mutual benefit, at prices paid by willing buyers and received by willing sellers. As soon as taxes are introduced, the pricing mechanism is distorted as the tax either makes the price higher than the buyer would have preferred, or forces the seller to sell for a price lower than the seller would have preferred.
Taxes are typically justified to make expenditures for the public good. The value of the public goods depends upon usage by consuming members of the public. Since usage varies according to circumstances, the cost of public goods is invariably distorted for particular individuals whose usage deviates significantly from the mean.
The alternatives to taxes include usage fees, as in park fees, toll bridges, toll roads, or the voluntary choice of private benefactors who voluntarily gift specific items of infrastructure for the public good, or fund projects for promotion. The immense danger of taxes is the tendency to increase the size government and the oppressiveness of compulsory dominion.
The laws of supply and demand and free market competition work to achieve optimum pricing over time. If the supply is too low in relation to demand, resultant prices will be higher until supply is increased or demand is reduced. If the price is “too high,” actual volume transacted will either be artificially low as demand is voluntarily unfilled or competition will add to supply to meet demand and prices will lower accordingly. If the supply is too high in relation to demand, prices will be lower to reduce supply.
Free market pricing of supply in relation to demand is superior to any other approach to pricing. Pricing set or affected by any third party will necessarily be less efficient, less fair, and less precise than pricing set by and between two voluntarily agreeing mutually benefited parties, one selling and one buying.
Providers, producers, or sellers do what they do to meet their needs by producing profit, which is simply income remaining after all costs and expenses. They need that income as a quantity of medium of exchange to acquire other things they need.
The incentive to produce profit or income is sometimes erroneously called “greed.” The incentive begins with justifiable need or desire in the pursuit of self-reliance. It can become greed or avarice in the extreme.
Efforts to share incentives for the general good and betterment of all participants work to minimize individual avarice.
Tuesday, December 23, 2008
CV
HIGHLIGHTS – Entrepreneur, Angel Investor, Adviser
• Expanding successful business model & doing export/import trade between Turkey/Greece & U.S.
• Developed strategic options for relational database technology innovation
• Oversaw creation of award winning semiconductor equipment test software, www.seawaretech.com
• Funded/guided internet-related ventures:
E-commerce service; Corporate services web portal; Online software training sales; Boutique ISP; and Web site development company; www.omniop.com
• Founded event management company, www.event-connections.com; annual income peaked at $400K
HIGHLIGHTS – Corporate Turnarounds
• Led turnaround –
From loss of $4M to a pre-tax profit of $8M
From sales of $10M to $40M in four years
Negotiated 20% higher selling price with a major OEM customer for improved gross profit margin
Improved operating efficiency for lower costs; substantially improved customer service.
• Led turnaround –
From loss of $6M to a pre-tax profit of $7M
From sales of $16M to $28M in two years
Stream-lined manufactured product lines from 12 to 3 for better focus
Improved product quality for reduced costs
Secured new customer contract for $35M
• Led turnaround –
Annualized sales from $1M to $5M
Gross profit from 35% to 50% within one year
Identified and penetrated new markets and channels of distribution
Clarified customer priorities; provided a higher level of customer satisfaction.
EXPERIENCE
Hepworth & Associates, Inc. – Entrepreneur, Investor, Adviser 1994-2008+
Bayworth, LLC – Principal, Co-Managing Director
2008+
Seaware Technologies - CEO
2002-2007
Event Connections – Principal, Event Producer
1994-2008+
Golden Bear Packaging, Inc. - CEO
1992-1994
American Hospitality, Inc. – Acquirer, Owner, CEO
1990-1992
Home Cookery, Inc. – Founder, Owner
1988-1991
Elan Products, Inc. - CEO
1987-1988
Disctron, Inc. - President 1983-1986
Datapoint Corporation - Division Manager & Director, Corporate Development
1982-1983
Amcomp - Advisor to president, Datapoint parent company liaison/Director
1978-1981
Datapoint Corporation - Business & financial planning manager
1976-1977
EDUCATION
MBA – Graduate School of Business, University of Texas, Austin
1975
Master of International Management – Thunderbird Graduate School, Arizona
1974
B.S. – Sciences & Mathematics, Utah State University, Logan
1972
• Expanding successful business model & doing export/import trade between Turkey/Greece & U.S.
• Developed strategic options for relational database technology innovation
• Oversaw creation of award winning semiconductor equipment test software, www.seawaretech.com
• Funded/guided internet-related ventures:
E-commerce service; Corporate services web portal; Online software training sales; Boutique ISP; and Web site development company; www.omniop.com
• Founded event management company, www.event-connections.com; annual income peaked at $400K
HIGHLIGHTS – Corporate Turnarounds
• Led turnaround –
From loss of $4M to a pre-tax profit of $8M
From sales of $10M to $40M in four years
Negotiated 20% higher selling price with a major OEM customer for improved gross profit margin
Improved operating efficiency for lower costs; substantially improved customer service.
• Led turnaround –
From loss of $6M to a pre-tax profit of $7M
From sales of $16M to $28M in two years
Stream-lined manufactured product lines from 12 to 3 for better focus
Improved product quality for reduced costs
Secured new customer contract for $35M
• Led turnaround –
Annualized sales from $1M to $5M
Gross profit from 35% to 50% within one year
Identified and penetrated new markets and channels of distribution
Clarified customer priorities; provided a higher level of customer satisfaction.
EXPERIENCE
Hepworth & Associates, Inc. – Entrepreneur, Investor, Adviser 1994-2008+
Bayworth, LLC – Principal, Co-Managing Director
2008+
Seaware Technologies - CEO
2002-2007
Event Connections – Principal, Event Producer
1994-2008+
Golden Bear Packaging, Inc. - CEO
1992-1994
American Hospitality, Inc. – Acquirer, Owner, CEO
1990-1992
Home Cookery, Inc. – Founder, Owner
1988-1991
Elan Products, Inc. - CEO
1987-1988
Disctron, Inc. - President 1983-1986
Datapoint Corporation - Division Manager & Director, Corporate Development
1982-1983
Amcomp - Advisor to president, Datapoint parent company liaison/Director
1978-1981
Datapoint Corporation - Business & financial planning manager
1976-1977
EDUCATION
MBA – Graduate School of Business, University of Texas, Austin
1975
Master of International Management – Thunderbird Graduate School, Arizona
1974
B.S. – Sciences & Mathematics, Utah State University, Logan
1972
Leadership and Advisory Contribution
• "Business value growth" mind set and "servant leader" management style
Complement a team immersed in industry and technology
Nurture focused “get real” initiatives to increase cash flow and grow value
• Industry outsider to work on the business to increase cash and corporate value
Question collaboratively, challenge supportively, trusting but verifying
Identify the few most important decisions to be made out of the many
Focus intently and enthusiastically on what matters most
Scrutinize business model, cash flow, P&L, balance sheet, key performance measures
Pinpoint opportunities, explore options, and follow through with needed changes
Improve confidence, credibility, communication, and constructive innovation
Better relationships with customers, employees, and suppliers
Connect the dots on how each person affects results
Key individual metrics to achieve goals
Spot frustration/vagueness – clarify to better instill practical improvement vision
Spark initiative, asking “What would you change or improve? What’s the next step?”
Upgrade traditional practices with value increasing improvements
Complement a team immersed in industry and technology
Nurture focused “get real” initiatives to increase cash flow and grow value
• Industry outsider to work on the business to increase cash and corporate value
Question collaboratively, challenge supportively, trusting but verifying
Identify the few most important decisions to be made out of the many
Focus intently and enthusiastically on what matters most
Scrutinize business model, cash flow, P&L, balance sheet, key performance measures
Pinpoint opportunities, explore options, and follow through with needed changes
Improve confidence, credibility, communication, and constructive innovation
Better relationships with customers, employees, and suppliers
Connect the dots on how each person affects results
Key individual metrics to achieve goals
Spot frustration/vagueness – clarify to better instill practical improvement vision
Spark initiative, asking “What would you change or improve? What’s the next step?”
Upgrade traditional practices with value increasing improvements
Scott's Professional Background
• 20 years as an entrepreneur, angel investor, adviser
Advise private companies as needed, as requested
Scrutinize business model, leadership, vision, strategy, training, quality, etc. to identify opportunities to improve business value
Help companies with research, strategic, organizational, and business development
Provide strategic guidance and financial resources to start-ups and established firms
• 10 years as turnaround specialist: 4 companies - technology, consumer products, industrial services
Amcomp – from $4M loss to $8M pre-tax profit
Disctron – from $6M loss to $7M pre-tax profit
Elan Products – from annualized sales of $1M to $5M
Golden Bear Packaging – from co-founders infighting to self-managing ESOP
Advise private companies as needed, as requested
Scrutinize business model, leadership, vision, strategy, training, quality, etc. to identify opportunities to improve business value
Help companies with research, strategic, organizational, and business development
Provide strategic guidance and financial resources to start-ups and established firms
• 10 years as turnaround specialist: 4 companies - technology, consumer products, industrial services
Amcomp – from $4M loss to $8M pre-tax profit
Disctron – from $6M loss to $7M pre-tax profit
Elan Products – from annualized sales of $1M to $5M
Golden Bear Packaging – from co-founders infighting to self-managing ESOP
Scott's Professional Objective
As an entrepreneur, senior advisor, or board member, increase business value by finding needs and filling them within companies, adding value to all relationships, improving organizational effectiveness, better fulfilling business purposes.
Use a checklist to audit for improvement opportunities
1. What "legacy obligations" might now be unnecessary?
2. How might management be more streamlined? Are there still too many layers of management, … rigid job classifications, inefficiencies?
3. Are we making products customers want? How can we improve them? Anything new we should do?
4. Are there unintended consequences we don’t like or is there anything that stifles important activity?
5. How can we enhance competitiveness? Do we have anything like a “regulatory edifice created over the years” that has removed freedom needed to take responsibility?
6. How can we increase accountability?
7. Do we need any "change in culture, to a culture that answers challenges with innovation…"
8. How can we better “access their can-do spirit…?”
9. Do we need help to “surmount… inertia … (to) energize, (do) spring cleaning, realign, advance… removing shackles … (to) unleash untold resources and human energy?”
(Quotes from PHILIP K. HOWARD - see prior post)
2. How might management be more streamlined? Are there still too many layers of management, … rigid job classifications, inefficiencies?
3. Are we making products customers want? How can we improve them? Anything new we should do?
4. Are there unintended consequences we don’t like or is there anything that stifles important activity?
5. How can we enhance competitiveness? Do we have anything like a “regulatory edifice created over the years” that has removed freedom needed to take responsibility?
6. How can we increase accountability?
7. Do we need any "change in culture, to a culture that answers challenges with innovation…"
8. How can we better “access their can-do spirit…?”
9. Do we need help to “surmount… inertia … (to) energize, (do) spring cleaning, realign, advance… removing shackles … (to) unleash untold resources and human energy?”
(Quotes from PHILIP K. HOWARD - see prior post)
Improvement opportunities in oversized government, corporations, and unions
Debt burdened companies require special attention to reduce discretionary expenses and sell assets to free up cash to reduce debt and/or otherwise restructure debt into equity.
Additional improvements may require additional “restructuring” along the lines described in “Let's 'Restructure' Washington While We're at It - Congress is at least as unresponsive to consumer demand as Detroit.” By PHILIP K. HOWARD, a lawyer, chair of Common Good (www.commongood.org), and author of the new book "Life Without Lawyers," published Jan 2009 by W.W. Norton & Co.
Extract follows:
Congress (is) calling for "a complete restructuring" of our failing auto makers. But how about restructuring Washington? The federal government is a giant Rube Goldberg machine that not only wastes hundreds of billions of dollars each year but also burdens local governments and the private sector with legal requirements that no longer serve the public good.
- Cut "legacy obligations."
- Streamline management. Too many layers of management, … rigid job classifications, inefficiency.
- Make products customers want. Check unintended consequences, whatever stifles important activity.
- Enhance competitiveness. Washington's (executive) failures are far more significant to the economy than Detroit's (line workers). Law has effectively removed the freedom needed to take responsibility.
- Increase accountability. …huge regulatory edifice created over the years.
As Rep. Edward Markey said of Detroit, we need a "change in culture, to a culture that answers challenges with innovation rather than lobbying and litigation." Truer words were never spoken about Washington (struggling companies).
Society can't function effectively if weighed down by decades of accumulated law. Americans can't access their can-do spirit if they go through the day looking over their shoulders.
- Impose change from the outside. Entrenched cultures rarely fix themselves. Washington does not have Toyota or Honda pushing it to compete and innovate.
What's needed is an outside movement to overhaul, making proposals area by area. It could be a council of elders, such as former leaders, a few who have to suffer under mandates. Only with outside pressure will leadership surmount the forces of inertia. Time to act is now. Energize, spring cleaning, realign, advance. It's worth the effort. Removing shackles of outmoded will unleash untold resources and human energy.
Additional improvements may require additional “restructuring” along the lines described in “Let's 'Restructure' Washington While We're at It - Congress is at least as unresponsive to consumer demand as Detroit.” By PHILIP K. HOWARD, a lawyer, chair of Common Good (www.commongood.org), and author of the new book "Life Without Lawyers," published Jan 2009 by W.W. Norton & Co.
Extract follows:
Congress (is) calling for "a complete restructuring" of our failing auto makers. But how about restructuring Washington? The federal government is a giant Rube Goldberg machine that not only wastes hundreds of billions of dollars each year but also burdens local governments and the private sector with legal requirements that no longer serve the public good.
- Cut "legacy obligations."
- Streamline management. Too many layers of management, … rigid job classifications, inefficiency.
- Make products customers want. Check unintended consequences, whatever stifles important activity.
- Enhance competitiveness. Washington's (executive) failures are far more significant to the economy than Detroit's (line workers). Law has effectively removed the freedom needed to take responsibility.
- Increase accountability. …huge regulatory edifice created over the years.
As Rep. Edward Markey said of Detroit, we need a "change in culture, to a culture that answers challenges with innovation rather than lobbying and litigation." Truer words were never spoken about Washington (struggling companies).
Society can't function effectively if weighed down by decades of accumulated law. Americans can't access their can-do spirit if they go through the day looking over their shoulders.
- Impose change from the outside. Entrenched cultures rarely fix themselves. Washington does not have Toyota or Honda pushing it to compete and innovate.
What's needed is an outside movement to overhaul, making proposals area by area. It could be a council of elders, such as former leaders, a few who have to suffer under mandates. Only with outside pressure will leadership surmount the forces of inertia. Time to act is now. Energize, spring cleaning, realign, advance. It's worth the effort. Removing shackles of outmoded will unleash untold resources and human energy.
Unions resulted from poor management
Google “Why unions…?” to see How and Why Unions Are Created History of labor unions in the United States Why Unions Exist Today Why Do Unions Exist? Why unions are not needed?
Enlightened business leadership is better than unions:
Give employees training to understand the business scorecard
Give employees the ability to keep score, to see the scoreboard
Give employees responsibility for numbers under their control
Give employees a financial stake in how the company performs
Those “closest to the action” and “engineers” will make better improvements by collaborating with each other.
Enlightened business leadership is better than unions:
Give employees training to understand the business scorecard
Give employees the ability to keep score, to see the scoreboard
Give employees responsibility for numbers under their control
Give employees a financial stake in how the company performs
Those “closest to the action” and “engineers” will make better improvements by collaborating with each other.
Collaborate to better serve corporate clients
All but sad cynics know the potential of "casting your bread upon the water." And anyone not familiar with the parable of the "Good Samaritan" has missed a lot of additional insights that make all the difference in life.
Collaboration is pitching in to interact, listen, compare notes, initiate and cooperate to help wherever and however it can make the difference to all concerned.
Everyone in the business of serving the needs of corporate customers has a base of corporate clients upon which their business depends. It is in their/your/our self interest to do whatever possible to further the health and well being and level of success of clients. Whenever "our clients" can be improved by becoming a well served client of another non-competing company, we are better off and so are they. Call that win-win-win. "You," "us," and "they" all benefit from smart collaboration.
Improvement, progress, the process of making things better, flows according to effort, energy, enthusiasm, effectiveness of results, etc.
While it can be delayed by mistakes that end up being time consuming to recover from, it is far more often delayed by procrastination stemming from fears associated with either pessimism or the impatient demand for perfection.
Is there anything that cannot be improved? Collaborate and find out.
There might even be a new business model emerge from such an undertaking.
Don't be shy, just start with some kind of feasibility testing:
1. Confirm interest of critical mass of initial participants and areas of interest/assignment.
It's wise to begin with the demand side:
2. Collectively compile list of first contacts to all known potentially accessible sources of client bases (lists of customers) – someone known well personally who can move things forward.
3. Confirm best contact person (not necessarily first contact) for each client base for initial client-by-client assessment of potential needs (top 3-10).
4. Identify client access hurdles to overcome.
5. How best to overcome them, case by case.
6. Who will do what to clarify and verify clients’ needs.
7. Make initial estimate of aggregate client demand for specific advisory and transaction services.
With some handle on demand, turn to the supply side:
8. Collectively compile list of first contacts to all known potentially usable service providers.
9. Clarify and verify distinctive competence of each service provider, including how to improve their competence.
10. Confirm initial capacity to meet demand.
Nothing is real until action produces results through operations:
11. Clarify database utilities needed, availability, administration.
Initial and ongoing business planning can make all the difference:
12. Confirm principal participation in profit center.
13. Name profit center and more succinctly describe it for maximum marketing value.
14. Clarify new profit center pricing, retainers, performance fees, etc.
15. Estimate volume, revenue, costs, expenses, cash flow and potential value of profit center.
16. Update implementation plan/timeline.
"Closing sales" makes all the rest possible:
17. Overcome hurdles and engage clients to clarify and verify needs
Superior "fulfillment" is the key to closing more sales:
18. Clarify and execute operations for growth and improvement.
Collaboration is pitching in to interact, listen, compare notes, initiate and cooperate to help wherever and however it can make the difference to all concerned.
Everyone in the business of serving the needs of corporate customers has a base of corporate clients upon which their business depends. It is in their/your/our self interest to do whatever possible to further the health and well being and level of success of clients. Whenever "our clients" can be improved by becoming a well served client of another non-competing company, we are better off and so are they. Call that win-win-win. "You," "us," and "they" all benefit from smart collaboration.
Improvement, progress, the process of making things better, flows according to effort, energy, enthusiasm, effectiveness of results, etc.
While it can be delayed by mistakes that end up being time consuming to recover from, it is far more often delayed by procrastination stemming from fears associated with either pessimism or the impatient demand for perfection.
Is there anything that cannot be improved? Collaborate and find out.
There might even be a new business model emerge from such an undertaking.
Don't be shy, just start with some kind of feasibility testing:
1. Confirm interest of critical mass of initial participants and areas of interest/assignment.
It's wise to begin with the demand side:
2. Collectively compile list of first contacts to all known potentially accessible sources of client bases (lists of customers) – someone known well personally who can move things forward.
3. Confirm best contact person (not necessarily first contact) for each client base for initial client-by-client assessment of potential needs (top 3-10).
4. Identify client access hurdles to overcome.
5. How best to overcome them, case by case.
6. Who will do what to clarify and verify clients’ needs.
7. Make initial estimate of aggregate client demand for specific advisory and transaction services.
With some handle on demand, turn to the supply side:
8. Collectively compile list of first contacts to all known potentially usable service providers.
9. Clarify and verify distinctive competence of each service provider, including how to improve their competence.
10. Confirm initial capacity to meet demand.
Nothing is real until action produces results through operations:
11. Clarify database utilities needed, availability, administration.
Initial and ongoing business planning can make all the difference:
12. Confirm principal participation in profit center.
13. Name profit center and more succinctly describe it for maximum marketing value.
14. Clarify new profit center pricing, retainers, performance fees, etc.
15. Estimate volume, revenue, costs, expenses, cash flow and potential value of profit center.
16. Update implementation plan/timeline.
"Closing sales" makes all the rest possible:
17. Overcome hurdles and engage clients to clarify and verify needs
Superior "fulfillment" is the key to closing more sales:
18. Clarify and execute operations for growth and improvement.
A company’s working core
1. Business model – products, services, pricing, costs, margins, volume, cash flow, profit, ROI
2. Vision – instilled, vivid, unifying, line-of-sight depiction of desired outcomes/goals
3. Strategy – how to fulfill the vision of the business model, credible planning
4. Organization – people, delegation, training, teamwork, I-O process & fulfillment
5. Leadership – style, attitude, ideas, initiative, energetic problem solving, desired results
Get help from advisers who instill principles and practices that are enduring, and therefore work themselves out of a job, allowing them to move on to the next improvement opportunity.
The best adviser’s price is a combination of hourly, project, and performance incentive.
2. Vision – instilled, vivid, unifying, line-of-sight depiction of desired outcomes/goals
3. Strategy – how to fulfill the vision of the business model, credible planning
4. Organization – people, delegation, training, teamwork, I-O process & fulfillment
5. Leadership – style, attitude, ideas, initiative, energetic problem solving, desired results
Get help from advisers who instill principles and practices that are enduring, and therefore work themselves out of a job, allowing them to move on to the next improvement opportunity.
The best adviser’s price is a combination of hourly, project, and performance incentive.
CEO’s must improve the business
CEO’s have two jobs
1. Manage the business
2. Improve the business
A corporate business adviser can help CEO’s improve business, focusing where needed most, first to improve the internal well-being of the firm itself, then the health of the firm’s non-competing corporate customers and suppliers.
Keep it simple, yet complete, working with appropriate company staff (permanent, full-time) to set up an internal process (repeatable) to audit, evaluate, and clarify specifics to perpetually improve a company’s working core.
1. Manage the business
2. Improve the business
A corporate business adviser can help CEO’s improve business, focusing where needed most, first to improve the internal well-being of the firm itself, then the health of the firm’s non-competing corporate customers and suppliers.
Keep it simple, yet complete, working with appropriate company staff (permanent, full-time) to set up an internal process (repeatable) to audit, evaluate, and clarify specifics to perpetually improve a company’s working core.
More than products, services, or technologies
Opportunities for business survival and growth in ever changing times are seized by those who improve in core aspects of business:
business model
vision
strategy
organization
leadership
not just the products, services, or technologies temporarily defining the business.
business model
vision
strategy
organization
leadership
not just the products, services, or technologies temporarily defining the business.
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