The Importance of Defining Your Company’s Vision

A “vision” can be defined many ways, but today we’ll be discussing what it means for your company. Specifically, a vision is a desired future state or a focused direction and purpose. Without a vision, your team can certainly do the work you tell them to do, but they’ll be missing the big “why” behind the work. And that “why” is where their motivation comes from. Therefore, in order to inspire and motivate your team to work harder, you can’t simply load them up with more work and give them rewards for finishing. You have to impress a grander vision for why they’re doing what they’re doing. Employee Engagement starts when the team has bought into... READ MORE ON CO.TRIBUTE'S BLOG  

A Cure for Emailoholism

I’m addicted to constantly checking my email.  I want to stop, but I can’t.  I think it’s mostly driven by fear.  I’m afraid of missing something important.  I’m afraid of missing out on an opportunity.  I justify my condition by telling myself that I am known for being responsive and available.  Responsiveness is one of my differentiators.  Being available and responsive goes a long way in today’s business world.  My clients and colleagues know that I’m always available and they appreciate it.  However, I take it way too far. Constantly checking email is killing my productivity, increasing my stress level, and preventing me from ever having true downtime.  I can’t live in the moment because I’m constantly thinking about what I’m potentially missing.  A major side effect is that I can’t focus on one activity for more than a few minutes without being distracted.

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Family Firms and Independent Boards

There is something about those of us who prefer freedom to security, and who build businesses with freedom to enjoy our work as a foundation stone. We don’t want folks looking over our shoulders, and we often translate that to mean we don’t want boards, and we certainly don’t want independent board members. It’s not uncommon to hear privately held company owners and CEOs talk about the painful experiences of trying to put advisory or governing boards together or to realize the benefit. What is uncommon is for those same owners and CEOs to recognize the problem may just have been centered in their inadequate recruitment, preparation and participation.

A highlight of this year’s CEO Summit at Convene, was a presentation by David C. Bentall, who shared the painful story of a substantial, family-owned business empire torn apart by the very people who grew it, blind to their own deficits until it was too late. Bentall has now devoted himself to helping other family-owned businesses manage their succession with greater aplomb. His book, Leaving a Legacy: Navigating Family Business SUCCESSion, is an excellent guiding resource, especially for family businesses moving into a second generation of leadership and beyond.

A centerpiece to it working well, according to Bentall, is a compensated, governing, well-prepared and independent board. This is very different than recruiting cronies and family members exclusively.  And…when such a board is in place, regular and high-priority meetings among family members, and their spouses, are also a must.

Pushing for this often brings the rolling of eyes and verbal protests. And yet, the burden of proof rests on the protestor. In lieu of following these best practices, how are they living as a steward of the company they are building? How can they claim to be so wise when they keep foregoing the laying of the long-term foundation to guide a company beyond their leadership?

Is it Time to Rethink the Carrot and the Stick When Motivating Your Employees?

Growing up I learned early that if I performed well with my chores, in school, or on the athletic field that I would be rewarded.  On the opposite side of the coin, if I performed poorly then I would be disciplined accordingly.  Because I was conditioned to this approach from an early age and having some “old school” bosses, I carried this performance mindset into my adult work life.  Unfortunately, this influenced my management style for a while as well.  This performance tactic is commonly referred to as the “carrot and the stick”.  The carrot and the stick might be good for horses who are bound and tasked for one thing, performance, but is it right for employees?  For me, this approach is based upon fear and control regardless of succeeding or failing.  Sure it can lead to some (with the emphasis on some) high end performance, but at what price and cost?  

There are certain things that I have learned when applying the Carrot and Stick regarding employees. This is a partial and very general list:

1. Employees who fail usually do so because they are frozen with fear of making a mistake

2. Employees who fail are miserable

3. Employees who fail feel devalued

4. Employees who succeed are in it for themselves

5. Employees who succeed learn to work the system

6. Employees who succeed are frustrated by the limitations

So, if the Carrot and the Stick are not the right approach with employees, what is?  It’s been my experience that Trust and Respect maximize an employees impact and well-being.  Trust and respect are nurtured through a climate of community in which team members are:

1. Constantly being affirmed of their value to the team. Employees not only need to feel needed, but also need to feel wanted.  They should understand and feel that they are more than just a commodity to the company, but a valued member.

2. Encouraged to be creative and problem solve. Allow an environment of open and free flowing dialogue.  Nothing is more frustrating to be given a task and then told exactly how to accomplish the task without allowing feedback, brainstorming, or critique.  When you facilitate openness with your team, you will be surprised by the ideas that pop up to enhance the project or company.  One of my favorite quotes is Michelangelo’s, “I am still learning.”  He said this when he was 87!  The Bible hits the nail on the head in Proverbs 27:17, “As iron sharpens iron, so one person sharpens another.”

3. Communicate an aspirational vision. Every Corporate vision should communicate purpose and provide the path for organizational direction.  However, it should also inspire buy-in and stimulate enthusiasm and commitment.  Does your employee feel like an interchangeable cog in the Company’s wheel, or do they feel that they are on mission with a valued community of team members to accomplish something greater than themselves?

Some success might come from using a carrot or a stick, but significance is achieved through trust and respect.

Five Keys to Growing Your Business in a Slow Economy

Living in Houston for the past 20 years we are pretty much used to seeing oil prices go up and down and how it affects our local economy. Similar to 2008, we are experiencing massive layoff and many businesses are experiencing business decline. If I’ve learned anything during these ebbs and flows, it’s not to panic. Here are five keys that I use to guiding my clients through these trying times.

One, don’t panic! Chicken Little was wrong! The sky is not falling; this too will pass! If you are living your calling and following God’s plan trust Him! Remember the words in 2 Timothy 1:7, “For God has not given us a spirit of fear, but of power and of love and of a sound mind.” Also Jeremiah 29:11, “For I know the plans I have for you, declares the Lord, plans to prosper you and not to harm you, plans to give you hope and a future.”

Spend time in God’s word, pray for peace, confidence and direction. Remember the bumper sticker that reads: “As long as there are tests, there will always be prayer in school? Well same applies in business!

Two, reach out! Reach out to every customer past and present. Ask how they are being affected by the downturn, offer to help if you can. Offer extended payment terms? Look for ways to add value or additional services without increasing prices? Let them know you are standing with them and will be there when the economy improves. I know of one company that offered to lower prices during the slow down to their best customers to ease the pain.

Reach out to vendors and subcontractors to let them know if you need to delay a payment or payments. Keep them informed. Reach out to your banker, extend your LOC if you can. Keep them informed so there are no surprises!

Three, expand! Look for underserved markets that are related to markets that you currently serve. Keep in mind that some companies, your competitors, that don’t have your fortitude and won’t survive. Have a plan to step in and pick up their best clients. Look for possible opportunities to merge or acquire your biggest competitor.

Four, market your business! Look for marketing opportunities’ and focus on specific underserved markets or areas you would like to penetrate further. Keep in mind that companies that hunker down or worse, take a “head in the sand” approach will take five years to regain lost market shares after the turnaround!

Five, examine cost! This is the one action everyone thinks about first but I urge caution here. Don’t overreact, make good choices. Look for ways to eliminate waste, inefficient processes, outdated procedures, examine everything! Evaluate your employee’s performance, if you do have to let someone go you will at least have something to guide your decisions. Avoid “sacred cows” even if it’s your brother in law or your sister’s kid. It may be time to allow them to make some other company successful! Have a plan in phases; cut cost, eliminate waste, downsize your staff in stages. Low performers first, cut the fat not the bone!

One way to increase profitability is to examine your business units, focus on the most profitable, look at the ROR (return on resources). Shut down the cash drains, reduce your efforts in the low margin units.

Always stay focused, stay positive, have a plan and trust in the Lord! He is faithful! Isaiah 40:31, “but those who hope in the Lord will renew their strength.  They will soar on wings like eagles; they will run and not grow weary, they will walk and not be faint.”