9 Dos and Don’ts for Best Decision-making

 

Here are nine tips – dos and don’ts for best decision-making. They’re applicable whether you have difficulty making the best decisions, engage in self doubt after making one, or are gun shy because some of your decisions have failed you.

To err is human. Businesspeople have been known to make unproductive decisions even after conducting a SWOT analysis. It’s common to get it wrong to set yourself up for failure. But it’s also possible to avoid being victimized from decision-making.

Whether it’s a career matter or a personal dilemma, here are tips to remember:

Especially, if it’s a major situation, accept it. Realize that if you’re facing an unforeseen dramatic situation, you’ll undergo three emotional stages: 1. Shock and denial. 2. Anger and depression. 3. Understanding and acceptance. Understand that this is the process and it’s important to get to the bottom of the acceptance stage as soon as you can.

Avoid confirmation bias in your research. Confirmation bias is the tendency to look for information that sides with you – either by giving more weight to information that confirms your goal or by ignoring information that shows the evidence cannot be right. Don’t let your ego run amuck.

Take precautions to be objective. Don’t let memories of past events cloud your thinking. Don’t confuse the new issue with others in your past. Seek the truth.  Research objective online sites; possibly with this list of informative Web sites.

Keep an open mind. Don’t pre-judge your situation. Don’t let your personal biases or cronyism create inappropriate attachments lead to the wrong outcome. Practice the principle of contrary action in all that you do.

Learn from past mistakes. Take stock, admit mistakes and profit from them. But if you’re a new boss, here are strategies to succeed as a new manager – a checklist.

Get a good mentor. A good mentor is a coach – someone who is a devil’s advocate and sounding board – not a yes-person – for honest feedback.

Foster critical thinking in your organization. A leader has multiple sources of information, including knowledgeable, assertive employees and peers.

Ask the right questions. Make certain they’re open-ended questions.

Don’t be tempted to take shortcuts. Shortcuts will get you where you don’t want to go – but only faster.

Cash flow is the normal concern in the new economy. If financials are a problem, here are step-by-step solutions for a company turnaround.

From the Coach’s Corner, think about 9 key questions before you form a partnership.

“Listen to advice and accept instruction, and in the end you will be wise.”

-Proverbs 19:20

_________

Columnist Terry Corbell is also a business-performance consultant and profit professional. Click here to see his management services (many are available online). For a complimentary chat about your business situation or to schedule Terry Corbell as a speaker, why don’t you contact him today?

10 Basic Tips — Leadership For Business Profit

 

Dec. 21, 2011

In the new economy – a former Great Recession that seems to linger and linger – companies will succeed by being a leader in generating capital. Unfortunately, this economy has become a zero sum game for many businesses.

They stay alive by taking market share from their competitors, not by innovating. At some point to dominate the competition, it will be best to create new opportunities for growth.

This will only be accomplished if a company’s culture is positive and every employee acts as a team member. That requires leadership.

For a positive leadership quotient, here’s a quick checklist:

1. Budget time for “blue sky” planning. Imagine how the company can become a market leader.
2. Review your strategic mission and plan, set priorities and communicate them. The biggest single complaint that employers have mentioned to me – their employees fail to see the big picture. Find ways to communicate your values on a regular basis. Explain to employees how their roles contribute to your company’s overall success.
3. Make certain your supervisors know the differences between leaders and managers. Don’t be one of the companies ripe for EEOC complaints.
4. Be authentic. Be open in your communication, create a climate for honesty to deal with mistakes, and listen. Drive clarity and promote accountability. Position yourself to profit from employee respect.
5. Bring your employees together for collaboration. Invite them to contribute their perspectives. It’s amazing how many problems are solved and profits are created by listening to workers – where the “tire meets the road.”
6. Simplify processes. Nurture your employees. Understand their desires, passions and talents. Give them confidence to accept challenge and to reach their full potential. They will propel you and the company upward. Further, remember that there’s a definite link between financial performance and succession planning.
7. Create a fun environment. Keep focusing on the positive.
8. Keep yourself moving forward. Learn the 10 characteristics of a successful CEO.
9. Stretch and grow by understanding how and where you need to mature personally to become a Ninja innovator.
10. Keep fine-tuning your culture. Keep an open mind. Look for ways to evolve and innovate.

From the Coach’s Corner, here are 7 Tips for a young professional to become a CEO.

“No institution can possibly survive if it needs geniuses or supermen to manage it. It must be organized in such a way as to be able to get along under a leadership composed of average human beings.”

-Peter Drucker

 

_________

Columnist Terry Corbell is also a business-performance consultant and profit professional. Click here to see his management services (many are available online). For a complimentary chat about your business situation or to schedule Terry Corbell as a speaker, why don’t you contact him today?

Lagging Profits? Year-End Is Ideal For Reflection, Planning

 

Dec. 15, 2011

Year-end is a perfect time for reflection and planning for your business.

Don’t be distracted from improving your business because of all the negative news: RealtyTrac reports homeowners from Seattle to Sarasota face another round of foreclosures. Nearly 50 percent of Americans are either characterized as low income or in poverty. U.S. business expects anemic growth and Europe anticipates a recession.

The only possible bright spot is in employment numbers, and CFOs plan more hiring in 2012 according to the Duke/CFO Global Business Outlook Survey.

Yes, you are busy and overwhelmed. You can’t do much about the macro developments but you can do something about your company. Even if you’re a retailer scrambling to make your numbers from holiday sales, it’s fitting that you start reflecting about 2012.

Start with an attitude of gratitude – make a gratitude list about what is working well. If you’re still operating as a business, you do have some blessings. Consider your customers, employees, family and close friends. All deserve your gratitude, time and attention.

If you’ve been feeling beleaguered, chances are you’re focusing on the 10 percent that needs correction instead of the 90 percent that’s working well in your professional and personal life. Consider these 23 tips to reduce stress, and work Happier for top performance.

Now that you feel better from a more positive perspective, think about what is needed for a better 2012 – Reflect on your strengths, weaknesses, opportunities and threats.

If you need a complete turnaround, here are13 steps you can take;  plus these 12 tips for profits to keep your business dreams alive.

Here are 31 New Year’s Resolutions to Recover from the Great Recession.

Otherwise, consider:

• Start with your role. Have you performed at a high level as a boss? Did you know there are 10 key differences between leaders and managers?
• Finances and cash flow – analyze your profits and expenses. Don’t forget to review your break-even point. Plan to make any needed changes.
• Regarding employees, decide what is needed in performance appraisals, salary reviews, training, and corrective action.
• Check your online customer service reviews. Write responses for negative reviews, but strategize on the internal changes you need to make to prevent more complaints. If you don’t have enough reviews, give an incentive to each of your best customers to take a moment to write a favorable review.
• Identify what you need in technology and make an investment to innovate for profits. That includes a strategy for a Web site update, online mentions and social media – LinkedIn, Facebook, Google+ and Twitter. Get your employees involved.
• If you’re frustrated in looking for new business, soften your approach.

Here’s to your serene holidays and a prosperous New Year.

From the Coach’s Corner, continue to fine-tune your strategies as events occur. But remember to think 1930s for business success. Consumer attitudes are changing. Maybe you should, too.

“I am still determined to be cheerful and happy, in whatever situation I may be; for I have also learned from experience that the greater part of our happiness or misery depends upon our dispositions, and not upon our circumstances.”

- Martha Washington

_________

Columnist Terry Corbell is also a business-performance consultant and profit professional. Click here to see his management services (many are available online). For a complimentary chat about your business situation or to schedule Terry Corbell as a speaker, why don’t you contact him today?

Lessons for Struggling Businesses from American Airlines’ Bankruptcy

 

Nov. 29, 2011

Financially challenged businesses can learn lessons from the American Airlines bankruptcy.

Ironically, AA is part of one my favorite childhood memories a half century ago in a recessionary time. As a 10-year-old with my younger brother in Oklahoma, our first airplane ride was aboard an AA propeller-driven plane to Los Angeles, where we rejoined our single mother.

We had been separated from her for months, as she had left a financially troubled company to take a job in Palm Springs. We were left behind to finish the school year while living with relatives.

It was an uneasy period for us, but the flight was exciting and fun. The stewardesses, as they were then called, gave the two of us exemplary service with beguiling charm. They made it a pleasant trip in our uncertain time.

A half century later, AA faces uncertainty. But it’s important for such businesses to alleviate uncertainty. For many, bankruptcy plays a role.

My sense is that the bankruptcy filing by AA’s parent company, AMR Corp., is an example of proper business planning to alleviate uncertainty. All struggling businesses and individuals might study AA’s plight to see if it’s applicable.

At this writing, investors are fleeing – the company’s stock is barely above water at 32 cents per share. The company lost $471 million last year on top of $1.5 billion in 2009 and $2.1 billion in 2008. That’s an indicator the company probably exhausted all options before its court filing – an honorable approach.

Propriety in Chapter 11

Chapter 11 filing helps the company to manage risk for stakeholders – passengers, vendors, shareholders and employees. It’s the proper flight plan to restructure debt and expenses.

AA flew a notable 9 million passengers last month. With 88,000 employees to service a complex route system, the company is an important part of the nation’s and global economies.

From the perspective of the Federal Aviation Administration, a flight plan is required for safety. A plane must have enough fuel to reach its destination and it must meet air traffic control requirements for routing and attaining the right height and speed to avert a collision with another aircraft.

A properly handled bankruptcy serves the same purpose. Under federal protection, AA will be able to continue to operate to serve passengers well on its 3,300 daily flights.

The bankruptcy filing means the company will be required strategize more – to come up with management strategies for a successful turnaround.

That probably means a restructuring of flights in the tepid sector. AA has been coping with an uncertain economy, heavy competition, and explosive prices for fuel. Here’s how a Northwest partnership leads to solutions for high jet fuel costs.

Pivotal key – human resources

Like most airlines, AA is challenged in passenger service. Airline travel was once a special event for passengers. But no longer with a perception of uncaring service, lost baggage and flight delays on many airlines.

AA will need motivated employees – to provide exemplary service with beguiling charm – like it did five decades ago. Let’s hope the 88,000 workers get the message. Poor customer service and internal operations constitute at least 50 percent of a company’s profits or problems. Employees can be part of the solutions or problems.

That includes hope the venerable airline comes up with a strategic plan to succeed. Stakeholders deserve a sound plan with step-by-step solutions for a company turnaround.

FYI, if you’re struggling, too, there’s no stigma in bankruptcy for an honorable company.

From the Coach’s Corner, if your business has financial headaches, consider these related resource links:

12 Tips for Profits to Keep Your Business Dreams Alive

The 22 Do’s and Don’ts for Successful Negotiations

Budgeting Basics for a Micro Business

In Any Economy, What Drives Your Profit, Really?

Accounting / Finance – Why and How to Determine Your Break-Even Point

Embezzlement – Tips to Protect Your Nonprofit or Company Assets

11 Strategies to Keep your Small Business Floating above Water

Link between Financial Performance and Succession Planning

Are Accounts Receivables a Problem? 

“Bankruptcy is a serious decision that people have to make.”
-Herb Kohl

__________

Columnist Terry Corbell is a business-performance consultant and profit professional. Click here to see his management services (many are available online). For a complimentary chat about your business situation or to schedule Terry Corbell as a speaker, why don’t you contact him today?

12 Tips for Profits to Keep Your Business Dreams Alive

 

Most businesspeople agree the economy continues to be challenging. Signs of a lingering downturn are everywhere. Business activity is slow. Governments at all levels report low tax revenue and are restructuring, and not spending. Customers want you to cut prices.

With a high level of oversupply in many industries, high unemployment and reduced customer spending, many businesspeople face a highly competitive environment.

To keep your dream alive in this downturn, you must find ways to adapt and do it quickly. That means re-examining business plans, strengthening risk management initiatives, retaining top talent, and making internal changes and restructuring to increase efficiency and profitability – all while looking for new opportunities for growth.

How to improve your business position:

1. Be defensive. Protect your turf by taking the best possible care of your best customers. You can invigorate sales with customer retention strategies. Find out what they think of your company, and make necessary improvements. You might consider jettisoning high-maintenance customers. Upon careful review, you might find they’re not profitable for you. You don’t want to be in a position where you’re just moving money around.
2. Expand your customer base. By surveying your best customers, you’ll probably get some compliments. That’s a perfect opportunity to ask for referrals. Find low-cost ways of rewarding them for referring their associates, relatives and friends to you. Here are sales and networking strategies to build strong relationships.
3. Invest in your future. Keep your productive marketing going. Train your workers. Take advantage of innovations in technology. Consider the 11 strategies to keep your business floating above water.
4. Develop an employee-loyalty program. Make it a fun working environment. Even if you can’t give raises, learn how other businesses are successful in retaining their best employees.  Learn which employees are most-likely to quit. Be transparent with them. Explain your challenges and how they can help, especially in processes and with customers. Note the strategies if a valued employee wants a raise, and money’s tight.
5. Fine-tune your branding. The Eight Best Practices in Small Business Marketing. The key to remember – customers want value. Think 1930s for business success. Consumer attitudes are changing.
6. Give back to the community. Did you know that cause-related marketing can increase sales by double digits?
7. Review your pricing strategy. Determine how to get more return on your sales. There are eight simple strategies to give you pricing power.
8. Use best practices in managing your financials. If you’re struggling, here are the step-by-step solutions for a company turnaround.
9. Be creative in your receivables. If collections are a challenge, here’s how to ease debt-collection headaches.
10. If you’re small, make it work for you. Remember  size doesn’t matter but image, professionalism count.
11. Do your best for the environment. Eco strategies work with customers. Here’s a checklist for branding, selling your biz as green.
12. Become an innovator. You must constantly evolve. Here’s how successful companies innovate. Once you are running on all cylinders, consider buying your competitors – providing, of course, you can manage them.

From the Coach’s Corner, if you’re really in a survival mode, here’s a six-part series with tips on “Surviving Economic & Industry Downturns” for your Downturn Survival.

“Nobody talks of entrepreneurship as survival, but that’s exactly what it is and what nurtures creative thinking.”

-Anita Roddick

 

_________

Columnist Terry Corbell is also a business-performance consultant and profit professional. Click here to see his management services (many are available online). For a complimentary chat about your business situation or to schedule Terry Corbell as a speaker, why don’t you contact him today?

Do You Want to Be a Ninja Innovator? Here’s How…

 

Every company wants to be successful in this worldwide downturn. But to achieve lofty goals, certainly innovation is the key in our new economy.

To become an innovative leader and to participate in turbo-charging the economy, it’s vital to continually evaluating your organization and strategizing for success. It takes involvement by members of your entire operation, and in most cases cultivating a new culture.

That means identifying your company’s assets, processes, resources and skills.

In a nutshell, here are the main points to consider in your analysis:

Human Resources – Completely review your capabilities in human resources with a focus on your competencies and weaknesses. Determine your abilities to achieve a competitive advantage.

Consider your recruitment process, training and development, and compensation systems.

Assess the strengths and weaknesses of your organizational culture, especially your leadership capabilities.

Products and services – Evaluate your offerings in terms of breadth and mix, quality and reliability.

Marketing – Take a hard look at your image, research, development, distribution channels, brand equity, sales personnel, customer-service quotient and market share.

Query your customers. What are their viewpoints? Evaluate your customer base to see if they meet your goals for growth.

Examine your potential marketplace with a focus on socio-culture – demographic trends and tastes, economic trends from interest rates to inflation.

Operations – Evaluate your productivity, quality controls, facilities, supply chain, technology, information systems, and management strengths and weaknesses.

Financial performance – Keep an eye on profitability. Forecast your revenue growth. Assess your asset utilization, debt-leverage position, liquidity and equity position.

Competition – Compare the missions, strategies, and competitive advantages of the competitors? 

Following your analysis, there are six steps to take. 

Here’s a checklist: 

1. Using your analysis, develop a big-picture strategic action plan.
2. Make sure you have a comprehensive human resources program that encourages collaboration among teams. That means maximum delegation, empowerment, training and succession planning.
3. Encourage blue sky planning sessions.
4. Continually evolve. Leverage the insights of your devil advocates with an eye on your company’s potential. Ask the right open-ended questions for optimal creativity.
5. Practice the “Principle of Contrary Action” to keep an open mind. Dare to be bold. Consider all alternatives.
6. Keep chipping away.

From the Coach’s Corner, here are related resource links:

Developing Trends, and Solutions for Manufacturing Success

Study: Why Lean Manufacturing Principles Often Don’t Work

Link between Financial Performance and Succession Planning

Management Strategies for a Successful Turnaround

“When planning for a year, plant corn. When planning for a decade, plant trees. When planning for life, train and educate people.”

-Chinese proverb

 

__________

Terry Corbell is a business-performance consultant and profit professional. Click here to see his management services (many are available online). For a complementary chat about your business situation or to schedule Terry Corbell as a speaker, why don’t you contact him today?

 

15 Quick Tips for Profitability in the New Economy

 

First, it’s important to accept the facts. The new economy – challenging times – is here to stay.

A business should perform like a championship sports team. That means protecting your turf while aggressively pursuing new opportunities, and making full use of technology.

For new or existing businesses, here’s a checklist of strategies:

1. Evaluate your strengths and weaknesses, opportunities and threats – including yours, key employees and the mission of your business. Consider a SWOT analysis at every level. You need to understand your talents, and your special niche. 
2. Study your marketplace. Your customers want to anticipate how your products and services will work for them. 
3. Develop a new marketing approach to differentiate your business from your competitors. Design a unique message with a minimum of five value propositions, a branding slogan and logo that demonstrates value. Use the right verbiage. Increasingly, customers favorably respond to words that connote security, convenience, good, new, proven, results, community involvement and green or environmentally safe. 
4. Write a vision plan, strategic action plan or a business plan, which is even better. Determine clear, pragmatic goals and how you will achieve them for the short and long term. 
5. Get the right advice. At the least, get a mentor who is successful and understands your business. Additionally, a network of business advisors will work. 
6. Monitor your expense and eliminate unnecessary costs. 
7. Leverage the insights of financial, legal and insurance professional, whom you can trust. 
8. Determine where your most profitable customers are. Get to know and understand their concerns and needs. Provide exemplary service. 
9. Recruit and hire the best talent. Look for attitude, education and soft skills. Pay them well. Be mindful of their lifestyles and family concerns. 
10. Continually look for multiple revenue streams and new product lines that make sense for your business. 
11. Don’t become a low-price leader. Be careful in using loss-leader pricing, and remember coupons only attract price-conscious customers. They will not be loyal and become repeat customers. 
12. Be pro-active, which means doing the footwork, and making old-fashioned cold calls. 
13. Nurture your relationships by sending greeting cards, thank you notes, special offer notifications, and an occasional visit or phone call to just chat and not sell. 
14. Make certain your small business voice is heard – vote, and make your business concerns known to lawmakers. 
15. Develop a succession plan and exit strategy, especially if you’re approaching retirement. 

From the Coach’s Corner, here are more resource links:

10 Scholarly Solutions for Selling More Products

Marketing Essentials on a Shoestring Budget

Management and HR for higher performance

“If your goal is anything but profitability – if it’s to be big, or to grow fast, or to become a technology leader – you’ll hit problems.”

 -Michael Porter

__________

Columnist Terry Corbell is also a business-performance consultant and profit professional. Click here to see his management services (many are available online). For a complimentary chat about your business situation or to schedule Terry Corbell as a speaker, why don’t you contact him today?

 

Consultants / Service Firms: Why Hourly Billing Isn’t Best

 

One of the first lessons I learned in business-performance consulting was to sell results, not my time.

During the tail end of the 1990 recession, I had purchased a five-year-old print-marketing firm. Quickly, I realized I was overlooking opportunities for growth. My newly acquired company soon evolved into a full-service management consulting firm, which I incorporated into a vision plan.

Technically, it didn’t become a pure consulting firm, it was more of a hybrid – consulting and management services. Some clients required more than my advice and information. They needed some heavy lifting.

Here’s a case study:

One of my early clients was a big office-furniture retailer, which grew too big without proper planning. We did the retailer’s print-marketing projects, but in client meetings after the owner complained bitterly to me about his sales staff, I offered to set up a sales-management program.

It was an highly chaotic situation. The whole sales and customer-service culture had to be fixed.

Initially, my outsourcing services were labor intensive as the sales staff was dysfunctional, and it got away with a lot of nonsense, which was hurting profits.

For example, salespeople were desperate to make sales to indecisive customers. Often, a salesperson arranged for free delivery of an eight-foot mahogany conference-room table to the customer’s business for a 30-day trial look-see – without payment or any safeguards for the retailer. Half the time, the table was returned – with a big scratch. The sales-opportunity costs were enormous.

Therefore, in addition to showing the client how to conduct meetings, I literally had to provide ethics, communication, sales and management training.

Valuable lessons

But I quickly learned I hadn’t initially set boundaries with the client.

After solving the major issues – getting his staff to work better – I was anxious to turn my attention to other clients. But my client was so accustomed to my being there every day, he expected it indefinitely.

He also didn’t understand why I only trained and advised him so he didn’t have to fire anybody, which would have increased his payroll even higher. He didn’t get why I didn’t have legal authority and why I always used my own materials.

So, the lessons prompted me to use a different upfront process – to sell results with benchmarks, to train the client about how I deliver results, and to explain how I’m paid and the timeline to expect.

It’s a relationship that requires trust by both parties.

To facilitate the relationship-building process, I changed my focus with strategies to build trust with clients.

Businesspeople want strong results that include:

• Efficiency
• Information
• Innovation
• Objectivity
• Productivity

This means projects are completed on schedule, within budget, and with measurable results.

To be able to accomplish such objectives, I had decided against hourly billing – I had to charge enough for my time to cover my business expenses, but some prospective clients had sticker shock from hourly rates.

Sometimes, the prospective client didn’t value some services as others. They thought I should provide them with a multi-tiered billing depending on the services. I had to get it ingrained in my mind that my time, consideration and energy were just as valuable whether I was training a class, mentoring one-on-one or writing advertising copy. All services had the same value.

Value pricing

So unless it was a big prospect who insisted on hourly billing, I began to talk to each prospect about investing in projects for strong results. I saved a ton of grief and time by charging retainers. I began to work off the retainer without nickel-and-diming clients for miscellaneous charges. Only on occasion would I bill for miscellaneous expenses, after getting approval in advance.

In contrast, professional service firms like hourly billing. They use software to track time. Candidly, if I hired a CPA or attorney, I insisted on knowing in advance what their total charges would be. I had heard horror stories. For example, the timer wouldn’t be stopped when the professional ducked into the lunchroom for a cup of coffee or took a phone call – or the hourly increments would be rounded up.

Further, whether I was hiring a professional-service firm or quoting a project fee, I wanted the focus to be on the work at-hand. I didn’t want to hire someone to get paid for tracking their time. As a consultant, most businesses have never hired me unless they had challenges they couldn’t solve. So I wanted to spend my time on providing results, not watching the clock.

In other words, my reputation depended on my ability to prevent negative surprises, so I’ve always offered value-pricing based on a retainer. Oh, and I stopped spending my valuable hours on penning proposals. The prospect and I will chat about the situation, and I’ll present a short letter of agreement, but I won’t incur any sales-opportunity costs to write proposals.

Remember, clients don’t want to pay for your time.

From the Coach’s Corner, here are 60 ground rules for effective client service.

“Hiring consultants to conduct studies can be an excellent means of turning problems into gold; your problems into their gold.”

-Norman R. Augustine

 __________

Columnist Terry Corbell is also a business-performance consultant and profit professional. Click here to see his management services (many are available online). For a complimentary chat about your business situation or to schedule Terry Corbell as a speaker, why don’t you contact him today?

Two Studies Indicate Need for IT Pros to Get Businesslike

 

Updated Feb. 1, 2012

CEOs have long complained to me about information technology. They complain about high-priced consultants, and that IT projects are too expensive and fail to yield a return on investment.

Now, two 2011 studies underscore the need for IT professionals to become more businesslike.

Study No. 1

At ITBusinessEdge, Ann All wrote a dynamic piece, “Don’t Let IT Projects Get Out of Control.” In it, she cites a study by McKinsey consultants and Oxford University that show both public and private sector IT projects can be a headache.

But the public sector gets more criticism thanks to enterprising journalists.

Ms. All cites Oxford Researcher Bent Flyvbjerg in a silicom.com article.

“A big one is lack of senior executive involvement,” she writes. “Senior managers have tended to see IT as less strategic and delegate responsibility for it…”

She quotes researcher Flyvbjerg, who provides his five solutions to prevent out-of-control IT projects, which include:

1. Benchmark it. This should be the first step, says Flyvbjerg, because it will help organizations understand everything that follows.
2. Get the bias out of the business case. The researchers found most IT projects are “highly biased,” with inaccurate estimates of costs, schedules and benefits.
3. Minimize complexity. This advice gets repeated a lot.
4. Limit project duration. The researchers found that projects that lasted longer than 30 months are the most likely to go out of control.
5. Get a master builder. It’s important to enlist someone with proven project experience, Flyvbjerg says.

Study No. 2

A Tenable Network Security study indicates 90 percent of security professionals are aware of reported breaches, but the majority don’t take proper action.

That’s right, the Tenable press-release headline reads: “90 Percent of Security Pros Take Note of High-Profile Breaches, But Majority do Nothing.”

The study surveyed attendees at the 2011 Gartner Security & Risk Management Summit. More than 90 percent were aware of the Citigroup, RSA and Sony breaches, but only 23 percent didn’t act on the information.

It gets worse.

“Nearly half (46 percent) of attendees surveyed had experienced some form of insider threat while at their current company, but surprisingly ‘preventing insider threats’ was ranked the second-lowest information security priority for the next six to eight months by the field,” said the press release.

“Even more surprising, one in three security professionals admitted that they had violated internal security policies they created in order to complete a work-related task quickly and/or easily,” Tenable added.

Yes, part of the problem with such IT projects is the lack of full participation by upper management, but clearly, chief information officers and their staffs have to do some needed footwork in communication and planning.

From the Coach’s Corner, so there’s no mystery regarding the conclusions in this Study: CFOs Still Calling the Shots in IT Decisions.

Here are two other resource links for IT:

How CIOs Can Get More Respect in the C-Suite

Tech Planning: What if There’s a Double Dip?

“The first rule of any technology used in a business is that automation applied to an efficient operation will magnify the efficiency. The second is that automation applied to an inefficient operation will magnify the inefficiency.”

-Bill Gates

__________

Columnist Terry Corbell is also a business-performance consultant and profit professional. Click here to see his management services (many are available online). For a complimentary chat about your business situation or to schedule Terry Corbell as a speaker, why don’t you contact him today?

 

Management Strategies for a Successful Turnaround

 

Businesspeople everywhere are preoccupied by budget woes – the need for turnarounds in business and government. Fortunately, the U.S. government debt-limit issue is temporarily solved.

Policies in the nation’s capital affect business. 

Despite their challenges in business, by a wide margin, the most-viewed news videos on this business portal have been the reports on the debt-limit debate in Congress. To summarize the fiscal doldrums of the United States – the nation has been managed poorly – a turnaround is necessary. 

A quote by financial-world wizard Warren Buffett is apropos. 

“I could end the deficit in 5 minutes,” he said on CNBC. “You just pass a law that says that anytime there is a deficit of more than 3 percent of GDP, all sitting members of Congress are ineligible for re-election.” 

To Mr. Buffett’s observation, I’d add another thought about politicians: Cancel the security blankets – their lifetime benefits. Relatively few politicians are paying attention to the available reams of risk analysis. 

In considering management strategies for successful turnarounds, certainly one of the considerations is the evaluation of risks. In this regard, another relevant quote by Mr. Buffett strikes me as funny, but true. 

“Risk comes from not knowing what you’re doing,” Mr. Buffett said. 

My response: “Touché.” 

It’s all about capital mobility created by effective management. 

Indeed, companies can be successful when they’re managed well. It stands to reason that turnaround success starts at the top – management must know what it’s doing. 

Not to oversimplify because every situation is different, here are 11 principles in turnarounds: 

1. Before acting, get the right information. Don’t get paralysis from too-much analysis, but know the difference when to act quickly or to be still. That’s where having experienced advisors will be productive for you.
2. For a 180-degree turnaround, use a 360-degree approach – many solutions lie within your company. Employees should be assets. Conduct an organizational assessment. Some employees can provide valuable insights about company culture, accountability, middle management, processes, internal communication, and customer preferences.
3. Consider yourself a CEO of your profession, not just your company. Complete balance is necessary. Whether you’re in the automobile business or technology, consider the perspectives of all your stakeholders not just your company.
4. Be careful to whom you listen. Lawyers don’t always know best. After the Gulf oil spill, my sense is that BP suffered by listening more to lawyers than reputation experts.
5. Become a master in tough-love management. Don’t allow yourself to become uncomfortably straitjacketed. You have to make tough decisions on which to act. This is not a time for people-pleasing. Get rid of unproductive employees.
6. Analyze the root causes of your situation. They usually include the poor-employee performance, marketplace competition, inaccurate sales forecasts, unproductive strategies, weak execution of strategies, expenses, inadequate cash flow, ineffective financial controls, and weak economy (which is why my writing also focuses on public policy).
7. Assuming your firm is worth the turnaround effort, assess your prospects.
8. Consider time-proven tactics, which include dumping poor assets, increasing revenue, lower costs, and making strategic purchases.
9. Develop and implement an emergency cash-flow plan.
10. Restructure your company by improving company culture, making operational changes, adding or changing products, and by fixing your branding approach.
11. Think big picture – start working to become the authority for your industry. That includes public policy.

If you can’t enjoy a return to profits, an exit strategy is your last alternative. An immediate abandonment strategy means you might have to sell to another company or liquidate your assets. 

Otherwise, you might consider harvest strategies, which allow you to evaluate your success against benchmarks. Options include preparing an initial public offering or selling to your employees in an employee stock option plan (ESOP). 

For an ESOP, you’ll need a positive company culture. Poor morale or divisions among employees will lead to their failure as a company. 

From the Coach’s Corner, consider these financial-resource links: 

Step-by-Step Solutions for a Company Turnaround 

8 Simple Strategies to Give You Pricing Power 

“The entrepreneur always searches for change, responds to it, and exploits it as an opportunity.”

– Peter F. Drucker

 

__________

Columnist Terry Corbell is also a business-performance consultant and profit professional. Click here to see his management services (many are available online). For a complimentary chat about your business situation or to schedule Terry Corbell as a speaker, why don’t you contact him today?

 

Next Page »