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Five questions a radio preacher asks to see if your business is heading in the wrong direction

Each day I listen to a Christian radio station as I drive to lunch. It’s not unusual that a preacher is sharing and often I find myself parking my car and taking notes. Yesterday was no exception as Chuck Swindoll was sharing five questions to know if we as believers are headed in the wrong direction.

As I quickly grabbed some take out and returned to the office I thought how the wisdom he shared could help businesses who may be headed in the wrong direction. Below are his five questions shaped to apply to you and your business.

  1. Do you find yourself fighting greater battles within than without?
  2. Is there more attention on one versus the team? (kingdom building)
  3. Do you feel you don’t need the Lord’s help in your business?
  4. Are criticisms of your leadership and your business quickly dismissed versus taken seriously and respected?
  5. Are consequences of sin are no longer feared? ( as a reminder, the definition of sin is “missing the mark”)

For a preacher who jokingly said he has a “face for radio” I find myself feeling very thankful for his sharing the wisdom found in the Bible. I find the Bible is an amazing resource of wisdom that can be applied instantly to circumstances we face as leaders in our business.

So how did you answer the above the above?

How is your team reacting to the challenges of today? Do they need to just STOP or are they “blame-storming?”

Do you find team members (you?) worried about how an individual may look versus the performance of your team?

Are you your own God? Is your ego preventing you from asking for the lord to bless you, your business, and your customers? (After all, EGO does stand for: Edging God Out) Are you counting on your gut and intuition?

How well does your senior leaders accept criticism and new ideas? How about you? Do you need to hire a Heretic?

Are you allowing bad behaviors that are not consistent with your team’s values? Are you allowing an “end justify the means” mentality?

All of this free business advice from the Bible and radio preacher? You bet!

You may want to check out his web site at Insight for Living, …who knows you too may find yourself parked in your car and taking notes at lunch time.

“Wet your sales team’s shields”… before they go into battle in your marketplace

 

Back in the days of the Roman Empire the warriors would prepare to go to battle by placing on their armor, gathering their weapons, and most importantly carry their shields. Their shields were obviously a tool to protect them in hand-to-hand combat, but also for  arrows shot from far distances where they often did not see the opponent who fired them.

Shields originally were made of wood wrapped tightly with animal hides. Some enemies however understood that shooting flaming arrows into opponents troupes long before hand-to-hand combat was a strong tactic as the outcome was often the destruction of the opponent’s shields. Without a shield the warrior was at a significant disadvantage in combat, and more likely to fall to random arrows fired from afar.

Experienced warriors would wet their shields prior to battle in anticipation of the flaming arrows. In today’s economy, salespeople are now receiving a number of flaming arrows that were not a part of the sales process in prior years.

· Longer sales cycles

 

· More people involved in the buying decision

 

· Need to have a stronger ROI to support the purchase

 

· Higher level executives within the customer’s team now must approve purchases

 

· Headcount reductions , so buyers are busier and more difficult to reach

 

· The internet, buyers now Google for solutions instead of calling their sales rep

 

 

My challenge is what are you doing to help your sales warriors go to battle in this marketplace? Have you created new sales tools to help them “wet their shields” before battle? Some of your competitors may even be equipping their teams with metal shields that not only defend against flaming arrows but also are much more efficient in the day to day hand-to –hand engagements.

 

The reality of today is just hoping the flaming arrows do not connect is not a strategy for success.

 

What new tools has your team created to help your salespeople win?

 

Have you identified the flaming arrows being shot at your sales team today?

 

Do you plan to use this time to move to more efficient tools and processes?

$84 million Greeting Card new product idea for Father’s day? …not so fast

Father’s day is approaching and what do you get the guy who seems to have everything? For my dad it’s pretty easy, although he lives 2,000 miles away we still talk each week and a couple of ideas quickly come to mind. He’s a big fan of the television show 24, and he likes to golf so I went to the store and I quickly found episode three of 24, a golf shirt, and a card that connected to a memory of when he would say” I’m not sleeping, I am just resting my eyes”.

My wife however struggles each year with  father’s day as her parents were divorced when she was very young and she has little if any communication with her dad. Each year she gets frustrated while shopping for a card as they all say things like; “to the best dad in the world”, or “for someone who was always there”. So I offered to find a card for her to send to her dad this year. (How hard could it be?Just go to Target and buy one right?)

I started looking at funny cards, yet they referenced time together. I looked at serious cards; however they expressed a deep message that did not seem appropriate. (Why did I volunteer for this mission?) This was becoming very difficult to find a card that basically says ; “Happy father’s day, although you choose not to be a part of my life I love you unconditionally and I am thinking of you this day, and although you forgot my last birthday, I want to thank you for helping to bring me into this world and it’s never too late to build a relationship”.

Having launched a number of new products over the years, my mind started racing…this is an unresolved market problem: Cards for children who wish to connect with their parents who are absent from their lives. ( I am reminded of the scene from the movie Night Shift when the actor gets out his tape recorder and says…I’m an idea man, for example; stop the garbage problem by having edible paper..yes, I have a tape recorder too)

Then that familiar little voice in my head said; I should start a company to fix this problem…..

Not so fast… does it pass the 3 step acid test discussed in the book Tuned In? Is the problem; urgent, pervasive, and are people willing to pay to have it solved?

Is this an Urgent problem? I would say yes every father’s day, Mother’s day, birthday, and holiday.

Is it pervasive, do a number of people have this problem? Again, I quickly say “yes” as this is a problem for my wife.( and therefore becomes a problem for me) I need to be sure however before I take funds from my home equity it will work. Very quickly I start extrapolating( justifying why I should do this); the divorce rate in the US is around 50%, so this problem could touch ½ the US population. So I remember reading somewhere the US population is around 290 million so ½ would be a potential market size of 145 million, sounds good so far. Not all parents that are divorced are absent from their children’s lives. However I do hear quite a bit in the news about deadbeat dads…so let’s assume 10% of divorced parents are absent from their child’s lives…so the market size is now around 14 million per occurrence, and there are at least three occurrences per year per person

Are people willing to pay to solve this problem? I would say yes again. After all I would pay more than the average cost of a card if it perfectly solved this problem, and I would not have to search so hard for the right card.

So we have an unresolved market problem, as far as I can tell. We have children of absentee parents who wish to communicate with them on special days and holidays. So let’s try to size this opportunity ;(three times per year kids need cards ) X(my market size of 14 million) X (retail price of the card, say $3.00). This would be a nice $84 million business right? Well no, my guess is the gross profit margin Target realizes on greeting cards is around 50%, so now the opportunity is $42 million.I need to write a business plan, go get funding and launch this puppy before anyone else thinks of it….again,maybe.

The above scenario happens to me mentally each day, many times per day as I find unresolved problems. The problems feel urgent, pervasive, and I am willing to pay to solve them…and that’s where most people blow it, because like me you assume and guess without market data.You may very well be willing to pay to solve this problem with a perfect solution designed just for this specific niche, however at this point you really do not know if others would be willing to pay to solve this problem. You really do not know if others feel this problem is as urgent to them, and therefore it may not be nearly as pervasive as you once thought. It may very well be an awesome idea and because we know this problem intimately we would be the perfect person to solve it.

I have helped a number of startups who saw unresolved market problems that were so crystal clear they felt they would be a fool not to launch a solution to solve this problem before someone else did. About 6-8 months into missing their positive cash flow projections they hire me to “fix it”. Sometimes they find problems in markets they know very well. Most of the new companies launched today were started by someone who was working for someone else at the time they discovered a problem. However some entrepreneurs fall into a trap; I’m a pretty smart guy, I have done ——-, and ——-, and I believe I can turn this into a nice business quickly that I can then sell to a market leader for millions, buy matching Bentley’s and never have a care in the world again…right? Again, Maybe…

I did a little research not long ago and found that at any given time 6 out of 10 US adults are thinking about starting their own business. The disturbing statistic was the majority, between 80-90% who do launch a new business fail within 18 months. Why? They launch without a thorough understanding of the market, they lack a business plan, and grossly underestimate the cash needed to build and grow the business.Of those that fail, 50% declare bankruptcy.

There are a number of great on line tools for how to write a business plan. You can Google “how to write a business plan” and you will find sites like; My own Business, and many others. Before anyone takes equity out of their home, or borrows from their 401K or loved ones I highly recommend you do research and write a business plan. When you write a plan, you will be forced to answer hard questions, and you will need to go into the market and do research and not just rely on your gut and mental extrapolations of market size. Based on my experience,when you estimate the cost to start your business pad it by +25%, and when you estimate your timeframe to positive cash flow add 8 months to your forecast. You still in the game?

You may vary well have the next great new product, and when you complete market research and build a business plan you may validate that opportunity. Once the plan is written show it to at least 5 trusted advisors and ask their opinion of the opportunity. Ask them if they would loan you the money to start this business and listen to what they say.(many will say it’s a great idea as to not hurt your feelings, however the true test is would they back it with their checkbook?) If these advisors say you have a winner, meet with a number of people who would be representative of your buyer persona and ask their opinion of your solution. What you must determine is ;does your solution perfectly solve their problem? In addition, you will be asked to create a SWOT analysis for your plan. In doing so make sure and review competitors in the space, as well as competitors adjacent to the space you wish to participate in. In this case I would be up against American Greeting and Hallmark to name a few. Far too often entrepreneurs launch great solutions to unresolved market problems but they underestimate competitors already in the space, or adjacent to the space.

If you find an unresolved market problem, and you find the problem to be pervasive and buyers are willing to pay to solve it, do yourself a favor and do some additional research and write a business plan.

Oh, and as for my hunt that became a three hour quest to find a father’s day card for my father in law…the card pictured worked just fine. Was it a perfect solution…no, but it will do.

Do you need to “Detox“ your business before it can hit your goals?

About twelve weeks ago I had a wakeup call. I had my regular check up with my doctor and he informed me I needed to have a prescription for high blood pressure. It seems my blood pressure was dangerously high and if not addressed could lead to a stroke or heart attack. I am not a big fan of taking medication that addresses the symptom and not the cause, so I asked the doctor what I should do. He reviewed my folder and looked me square in the eye and said “you need to lose weight, I don’t know if you realize it but over the last seven years you have gained over 50 lbs…loosing this weight would be a great start.” What the doctor did not know was that I was working out three times per week but just couldn’t lose the weight this time.

A friend had a noticeable weight loss (70lbs) recently so I asked Dave what was his secret? Without hesitation he said “Medifast” and he gave me the phone number of their local office. When I met the counselor she started by asking me a number of questions, taking my blood pressure and handing me a prescription for blood work I needed to have done at a local clinic. The counselor then explained the weight loss process will begin with a week of “detox” .

Instantly my mind raced and I became apprehensive and anxious. I thought of the infomercials from television about detox programs and how John Wayne was supposed to have had over 20lbs of undigested toxins in his system when he died. I started to worry about the process and how uncomfortable it probably would be.

The counselor obviously has seen the look I now had on my face before, so she started to educate me about how our bodies work. Our bodies were designed to be amazing efficient machines. We are designed to consume food that contains essential vitamins and minerals to keep us alive and full of energy. What happens through poor food choices, stress, and bad lifestyle choices is we accumulate toxins over time. Toxins significantly impair the efficiency our bodies were meant to operate in. Toxins surround fat cells and if left unchecked, prevent our bodies from metabolizing stored fat for energy. One result is we consume more food and do not burn the stored energy reserves as we were designed, and coupled with inactivity we gain weight.

When we detox our bodies we help clean out accumulated toxins and bring our bodies back to the efficiency we were designed for. In addition to now accessing fat cells for energy, your body will absorb vitamins and nutrients as is was designed and need to eat less.

Since starting the program with the m’lis suppliments eight weeks ago, I have lost just over 30 lbs and I have noticeably more energy, I’m wearing clothes I have not worn in years, and most importantly I no longer need to have a prescription for high blood pressure. The detox process prepared me, my body, to achieve my desired goals.

As I went through the week of detox it made me reflect how a number of the businesses I have helped over the years needed to detox before I could truly help them. Businesses accumulate toxins and by not actively participating in their markets they lose their effectiveness and become sluggish. They find their gut and intuition is not producing desired results. As I reflect about the process I have used to help companies over the years I noticed they often followed a predictable series of steps;

1. They ask for help, something is off; a missed goal, poor performance of key indicators…, they learn what it would take in commitment, time, cost, and they postpone or choose not to change…live with it hoping the problem, the pain, goes away on its own

2. Wake up call, something happens; having to use their line of credit to make payroll, they lose a key account (or two), a competitor launches an amazing new product that obsoletes their cash cow, poor EBITDA, or the board gives the leaders a timeline for improvement.

3. They commit to change

4. We go into their market, find out why people do business with them, find out why others do not, and gain the markets’ perception of what this company does and does not do.

5. Discover market problems no one is solving

6. If the business has a solution that solves unresolved problems, reposition it in the markets’ voice based on the problems this product or solution solves

 

7. Identify roadblocks, how easy or hard is it for your clients to do business with you? Identify the “flaming hoops “customers need to jump through, and tear them down

8. Detox- the entire team, flush all the old , dated , beliefs and clean the business from within of all the roadblocks preventing the efficient absorption of revenues and profits. One area that grows fat and becomes less effective is often marketing. I discussed this in my post; “Skubala” Marketing. Sometimes it is actually team members we need to deter as Art Petty identified in his blog post Detoxing Your Team.

9. Create new product solutions if your current offering does not solve the unresolved problems you discover

10. Collect testimonials of clients, in their words ( do not “marcom” their words) that describe the problem they had and how your product solved it

11. Tell, tell everyone in the market the problems you solve

12. Start absorbing the new revenues of a healthy business

13. Plan to detox your business frequently as markets change

If your business is not healthy today, you are not alone. The current economic condition was a wakeup call for a number of businesses. As Kristen Zhivago identifies in her blog post Bravery and your Revenue, it takes a brave CEO to operate in the “beyond the call” mode. For a number of teams they learned their business was not as healthy as it outwardly appeared in good economic times, times when the phone just seemed to ring and they were in call mode. Good economic times do not push us, stress us, and test the overall health of our business. Just as a stress test or a blood pressure cuff can provide an early warning to a potentially fatal problem in the future, tough economic conditions show us the weak points, the kinks in our corporate armor that must be improved.

The majority of the teams I have worked with needed to detox, flush their old beliefs, and inside out perceptions ,processes, and their “company speak” prior to being positioned for explosive growth. The most common way of detoxing your business is to seek the truth. You find truth in your market asking questions , not sitting around board tables starting sentences with; “I think” or my personal favorite “ when I ran _____( you fill in the blank) 10 years ago we …..” That probably worked great 10 years ago and that is why you now hold a leadership role. But guess what, the market has changed! Once the business completes the detox process they are positioned to become healthy, and ultimately a market leader in their space.

If you cheat and try to cut corners, not flush all the toxins from your business you will only postpone your future profits and shareholder value. If you don’t flush the dated perceptions, non contributing team members, policies and procedures that serve your team, but feel like flaming hoops to jump through for your customers, your business will remain inefficient, ineffective and could, if left untreated …die.

So do me a favor, start detoxing your business today and your team will become more efficient, effective and ultimately a market leader. Market leaders have higher gross profits, grow 2X that of competitors, have higher morale, and valued higher.

Most competitors will choose to be lazy and keep carrying around the dead weight of old assumptions that suck the life out of their growth, profitability, and their market value as an organization.

A couple of questions for you:

What Toxins has your business accumulated over the years?

What symptoms have you seen over the last nine months that were a wakeup call for you and your team?

If you choose not to detox, what is the reason? What are you afraid of?

Do you have team members that need to be detoxed?

How healthy is your bottom line?

The Leadership “Two Step” … how well do you score?

How do you know if you are an effective leader?

There are two quick steps to determine if you truly are a leader;

1. Check to see if you have willing followers

2. Take a look at the shadow you cast

 

The first one is pretty easy, and often very obvious if you take the time to look. Do you have people willingly following you? I say “willingly “because I am not referring to employees who do what they are asked to do, but team members who choose to follow you and believe in your vision. Guess what, if you do not have any followers…you’re not a leader and you can quit reading now.

So you have people following you, but are you effective as a leader? The second question may take a bit longer reflection time. I was taught early in my career that leaders must be intentional about the shadow they cast. Your shadow will speak volumes over what you say to your team. As a leader you must be intentional about the shadow you cast…after all EVERYONE is watching! Ineffective leaders do not walk the talk and are not aware and or do not care about the shadow they cast.

If we are to be intentional about the shadow we cast, what are some common characteristics of true leaders? Below are my top 10 favorite leadership characteristics;

1. They gain power through lifting others up, not by pushing them down

2. They focus on problems ( road blocks), not people

3. They delegate authority to team members closest to the problem

4. They ask what is best for the overall organization, not the CEO, owners or employees

5. They personally take ownership of risky strategies

6. They describe a clear destination and share the flight plan to get there with mile markers along the way

7. They do not delegate the “hard stuff”

8. They are accountable , they own their decisions and do not look for fall guys if things go wrong

9. They are humble

10. They focus on what’s working, verse what’s broken

 

How about you, what are some of the characteristics you look for in a leader?

What are some characteristics you see that you cannot work for?

Do you report to someone, what does their shadow look like relative to the above 10 characteristics?

13 “old school” steps to hiring the right independent sales representative

I have worked with independent sales representative firms throughout my career and wanted to share how I found firms that produce rapid results. These results include increased sales revenues, market share, and rapid strategic account product placements. As I discussed in my previous post “Should you hire Independent Sales Representatives?” before you hire an independent sales representative (ISR) you must understand the role they play as well as the role you will play supporting their efforts. For example, good ISR’s have a close network of buyer relationships and lines of complimentary products. Their goal is to sell as many of their product lines to the buyers they have built trusted relationships with over the years. ISR’s rapidly increase your speed to market and placement. At the same time they are “independent” if they wanted to be “managed” they would not own their own business.

So how do you hire the right ISR for you? Today there are many online tools to help you find ISR’s, from online rep finders to blogs and legal sites that even provide templates for ISR contracts. However sometimes the ways we did things prior to the internet, prior to the availability of so many tech based tools is still the best way. Below are the ten steps I learned to use over 15 years of experience on how to find top producing ISR’s.

1. Identify the accounts you want to sell in a region

 

2. Determine the appropriate buyers who purchase your product category at each account

 

3. Call each buyer, explain you are planning on hiring a independent representative and ask what are the top three firms you would recommend

 

4. Review your current markets where you have independent representatives and what complimentary product lines do your high performing firms have?

 

5. Call the sales managers at these complimentary firms. Ask them who they hired in the market(s) you plan on developing, and who they would not recommend and why

6. Take the lists you now have and prepare a letter of inquiry to introduce your company, your products, and the sales opportunity to the various ISR’s. Ask them to respond by a specific date with a presentation of their firm, the lines they currently carry and any other information you require.

 

7. Note the firms that called to confirm you received their information and asked if you had any questions. Weight them higher than those that do not follow up.

 

8. Sort all the responses and weight them with buyer and other manufacturer referrals. Review the lines they represent. Do not quickly dismiss firms that have competing products to yours as good independent firms will drop poor performing lines for product lines with bigger revenue opportunity or bring with them entrance into other strategic accounts within their territory. You may already have a relationship with an account in their market they have not opened, so representing you may open a door to a new relationship and sales opportunity for all their other lines as well.

 

9. Call the firms you are interested in working with and get a feel for their professionalism and phone presence

 

10. Book a Hotel room with an attached meeting room in the desired market and meet with all your top candidates. Request that not only firm principals attend but also some of their salespeople. A mistake many firms make is hiring an ISR based on meeting the principal of the firm, and they actually work with a team of different people.

 

11. How well did the firms you met with sell their firm and the value they can add to your organization?

 

12. Listen to your gut. Ask yourself honestly: How well does this firm match our team’s culture?

 

13. You also need to insure your product line will not get lost in their portfolio of products. How important will your product line be to this firm? Will your line provide 10%-20% of their overall commissions or will you “just pay their light bill?”

 

The above steps consistently produced high performing ISR’s in the markets I have served. It may seem like a lot of upfront work, however I have found the time you spend upfront finding the right firm for you will pay multiple dividends over the years, result in explosive growth quickly and a strategic partner to help your company grow year over year.

 

How about you…do you have a technique you use to find independent sales representatives?

 

Are you an independent sales representative? What do you want manufactures to know?

 

How do you know when it’s time to hire a new firm?

 

What do you do if a key account says they do not want to work with one of your ISR’s?

 

What is your policy on “house accounts” in the ISR’s market that you do not pay commissions on?

Are you creating a symphony for your market?…or just noise?

To create a symphony you need multiple instruments playing at strategic times to create something the audience enjoys. It require planning, practice, and integration. Each note played either adds to the total experience or takes away from it.

Marketing is like creating a symphony in that you use instruments like the web, direct, blogs, PR, creative, social media,copy, media, and so on at just the right time , based on the needs of the market and its buying process. The only way you can insure what is pleasurable and more importantly useful to your audience is to thoroughly understand the markets needs and wants while understanding what each instrument does. You do not make those decisions in a board room or a weekly staff meeting. Your team does not make them by guessing, assuming, or relying on: “when I was in the market we …” You make them in the market speaking with customers and noncustomers alike. You gather data through open ended questions and your personal observations.

Buyers have patterns, processes,personas, and accompanying emotions connected to pain points. People buy with emotion then validate their decision with facts. One big emotion is trust;” can I trust you will do what you said you will do? That your product or service will solve my unresolved problem like you said it will?” Your integrated marketing therefore needs to build trust.

 

So what are the rules for integrated marketing that sounds like a symphony and not just noise?

 

1. Know your market and its problems

2. Know your buyers buying process and buyer personas

3. Identify where your buyers go to solve their problems

4. Create content that explains how your product or service solves your buyers problems

5. When they find you, “serve” them don’t “sell” them

6. Build trust

7. Be authentic, transparent

8. People buy from people

9. Attach the value of solving their problem

10. Speak with a unique voice for each of your buyer personas

11. Create learning’s -Measure and track everything you do

12. Feed the market in spoonfuls and not a fire hose

 

Are your buyers hearing beautiful music when they view your integrated marketing campaigns? Or are they inundated with noise? I don’t know about you, but when I hear a noise that annoys me I tune it out, I switch the channel until I find music that resonates with me.

Are your marketing instruments creating noise and your buyers and those who could be buyers are tuning you out? Chances are you are not connecting to the market problems and you are using instruments that may have worked fine 15 years ago but need fine tuning.

What are some other ways that marketing becomes noise, and worst an annoyance to the market?

What are some recent examples of marketing noise?

Want to add value to your bottom-line quickly?…Hire a Heretic!

 

 

OrigenFace

 

 

 

 

In Art Kleiner’s book titled: The Age of Heretics , Kleiner‘s definition of a heretic as: “a visionary who creates change in large-scale companies balancing contrary truths they can’t deny against their loyalty to their organizations.”He discusses how managers get stuck into a rut and need heretics to point out new points of view to get past the deadlock and move forward. Later he describes some as “rebels unwilling to kowtow to the corporate bureaucracy.”

One example of a heretic (and there are many in the book) is Jack Welch who gained a reputation as he climbed the ladder at GE as “ignoring or pushing back against, the bureaucratic strictures of his parent corporation.”

In Art Petty’s recent post this week titled : Help Wanted: Visionaries and Dreamer-Safe Return Doubtful Art refers to individuals who create great works of art on a blank canvas, they run towards adventure instead of away from it. Art goes on to say how we should channel our inner-Shackleton,(after the leader and explorer Ernest Shackleton ) and provides four lessons that apply to the adventurers called Heretics today. It reminded me that some people are cut out for adventure and some are not.

Having played the role of heretic in most of the companies I have served, let me tell you what to expect if you have the guts to hire one. A heretic is someone who will not take the easy road agreeing with key influencers throughout your organization. Obviously if what your key influencers are saying and or doing is in alignment with market needs they will, but if they hear something that is inconsistent with the vision of the organization or market needs they will tell you. Team members may feel this is a lack of loyalty. However to the contrary a heretic is singularly focused and loyal to one objective and that is adding bottom-line value to the team he serves, to aligning the organization to win profitably in their market. They will tell the CEO for example that his recent directive to the troops is not in alignment with market needs nor the core values and mission of the organization. He will remind the CEO that the mission statement is as much about what you will not do as much as what you will focus on.

A heretic does not know, or more importantly does not care, your VP of Marketing is your sister in law. He does not know or care that your VP of Sales was your fraternity brother at Ohio State, but he will tell you if that VP is not demonstrating the ability to lead his team in a direction aligned with market needs and your vision. A heretic will come into your organization and ask a lot of questions. Some of his questions will make you uncomfortable and definitely rock the foundations of some silos that have built throughout your organization. How will you as the leader of your organization know? You will recognize incoming torpedoes when you see them. If key influencers and leaders in your organization start using their relationship with you to shoot torpedoes at “the new guy” you know he’s asking uncomfortable questions.

The heretic will then want to spend a great deal of time in your market finding what he does not know. They may ride along with sales people, and often may engage with your customers on their own…LET THEM! Sales will balk, marketing will object, finance may say it’s too expensive, but let him dive into your market asking questions. What you will find if you shadow him ( and I strongly encourage CEO’s to do so) is he has an innate ability to make people feel comfortable and get customers talking. When you listen to him you will hear open ended questions, not questions to validate a current corporate understanding. He will seek to get to “why’s” much more that “what” and he really does not care about “who” . Who did that? Who said that?…He’s not out to find who did things wrong, but he seeks to gain an understanding of the market and its problems.

After spending time in your various departments, (and I should mention he will not just speak with leaders, but every level throughout the team) and spending time in your market with customers, non customers and market influencers… the fun begins.

The easy part is they will share with you what you are doing well, but not in his opinion, but the voice of the markets’. He will also share gaps, misalignments like poor positioning, branding, or a lack of sales tools to support the buying process he observed. He may hold your customer service or quality department’s feet to the fire over interruptions he found in speaking with your team and your market.

Heretics reshape organizations to be market focused and thus the organizations become market leaders. Market leading companies are over 30% more profitable, grow faster, have higher customer satisfaction and higher morale.Their radical thinking throughout history has reshaped corporate management ( and our society) as we know it today, and they will create the market leading organizations of tomorrow.

So how about your organization, how do you know if you need to hire a heretic?

1. Lack of EBITDA growth

2. Your leaders speak in terms like “I think” verse sharing authentic market feedback and data

3. No one on your team challenges you as the leader

4. Your team has many meetings but you do not discuss topics that matter

5. Your salespeople sell your product or service like it is a commodity

6. The last two product launches failed to meet ROI projections

7. Your salespeople are creating their own sales tools

8. Your leadership team spends more time covering their own butts that talking about growing your business

9. If you are on your third advertizing firm in 18 months

10. If you answered a question with something like; “because that’s the way do things here…” in the last three months

11. If your competitor just released something that seems to “be selling itself” instead of your team introducing it

12. If the distribution of marketing funds to various vehicles like; print, web, trade shows, direct, social media, has not changed in the last 12 months

13. If reading this post made you feel uncomfortable

What are some other signs that companies should intentionally hire a heretic?

How would a heretic be received in your organization?

As the CEO, what’s more important …increasing the economic value of the corporation, or being the one who has all the answers?

As CEO Should you give yourself a “pink slip?”

At a recent T.I.E. event, a venture capital firm partner said “ by the time you change CEO’s, you are already twelve months late.“As I discussed in is your business is bleeding , if  your business is in trouble it is one, or a combination of three back to basics business triage areas; product, market or team.. Sometimes it may even be the team member titled CEO. So why do we have such a difficult time with this? Is it ego, Pride? A great post by Kristin Zhivago tilted ; Revenue and your charactor: the high cost of Pride touches on this as it relates to listening to cutomer needs verse thinking you know all the answers.I have found two types of CEO’s emerge over time in the life of a business; the entrepreneurial founder and the professional  business builder. Both skills are valuable and very important and rarely does one individual master both.

Entrepreneurial leader

This CEO has a technical expertise in their space, and are visionaries, “big picture leaders”. They are passionately focused on solving unresolved market problems. They see problems as opportunities. Their quest is the difference their work makes in the lives of others in their market. They are inventors who can not rest until their product or service perfectly solves the problem.

Business builder

This CEO knows how to scale a business. They know how to grow markets and their people. They measure what matters and have a strong network . They are balanced team builders that create a sustainable and repeatable growth.They are connected to their market, but may lack the technical expertise to solve unresolved market problems.

So how do you know what kind of CEO is needed by your business?

What stage is your business in today?

What type of CEO does your team need at this stage of the organizations growth?

Honestly, are you that person?

There is nothing worse than providing the wrong skill set and leadership style given the lifecycle of your business. I am not saying to actually “give yourself a pink slip”, but a true leader knows his/her strengths that add value, and their weaknesses .Leaders know the needs of their team and market. If your business has grown to a point with your entrepreneurial flair, great, but rarely will this type of leader scale that perfect product or solution without help.

I see this very often in the Biomed industry. The founder is most often a scientist focused on “the work”, not the business of monitizing the work. So once the new solution is developed, they often hire a CEO to scale the business. This individual is not their “boss” but a partner with complementary skills  that will grow the business. These founders have the emotional intelligence to humbly admit their personal distinctive competencies.

So ask yourself a simple question to find what kind of CEO you are; is your passion in the development of products and or service solutions that solve unresolved problems? Or is your passion and expertise in the management and growth of  teams and  markets? Some might say, “well why should I pick, I am good at both.” Well I hate to break it to you, but if you feel that way you are either very rare, or very wrong. ( the odds favor wrong) Once you answer the above, now ask yourself what type of leader does your business need today? If you want an unbiased view, ask your team to participate in 360 review.

If you find the business needs a skill set you do not possess, one of the best things you can do for your business and personal wealth, is to hire that skill and it may be a new CEO. This decision will free you to serve with your gift while being complimented by a partner who also has unique competancies . Agreat article by David Allen some time ago Titled : You can do anything-But not everything helps solidify the need we all have to narrow our focus.

If you are a founder, how can you come to grips with growing and handing your baby over to someone else? Focus.Focus on your business and its needs!

Besides, the founder is the one authors write books about.

A backpacker’s advice when we feel lost in business…

I was sharing with a friend who is an avid backpacker that a number of clients feel lost in today’s economy. Today is unlike anything they have experienced before and they feel lost. The things that always “worked” before, do not seem to apply now. As we discussed this my friend Jim said “well you know what they teach backpackers? We teach backpackers when they are lost to; STOP.

Sit

Think

Observe

Plan

As I drove home that night I thought how profound that advice is for business leaders and owners today. I see so many business owners thrashing around, busy with tasks (tactics) that they have always done and hope they will change their current circumstance. It is difficult to just stop. Yet the reality of thrashing around without focus only depletes our resources and exhausts us. Exhausted and afraid we are not able to make rational (strategic) decisions which results in our becoming even more lost, and increasing the potential danger. Like a tire stuck in the mud some of us keep pressing the accelerator only to sink deeper into trouble and making more of a mess.

When we STOP, we replace activity and busyness with stillness. We stop depleting resources aimlessly throwing everything at the wall in hopes it sticks and allowing us to conserve our energy for more strategic effort at a later time. In a quiet state we can recognize what resources we have, where we are, where we have been, and accurately assess and observe the reality of the moment. In this state you may choose to make camp and seemingly do nothing. Rescuers will tell you when lost; the best way to be found is to not move. You may notice a landmark you failed to see while thrashing deep in the brush. Once still new options become evident.

When we STOP thrashing around in busyness and we can make our plan. Planning after thinking and being intentional about your future movements or non movement coupled with a thorough understanding of what is reality prepare us to make the most effective and efficient plans.

Plans give us focus, purpose, and an objective to rally behind. When we plan we naturally review a variety of scenarios so we create alternative plans that we may engage as we gather new information or encounter new challenges. The old saying “when we fail to plan we plan to fail “affirms this advice.

How about you? Have you taken the time to STOP over the last six months? If not, how’s that working for you?

Deciding to STOP could be the most valuable exercise you can do for your business and yourself.

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