Top of Mind

How to Create an Awesome Internal Brand

2011-12-08T16:14:05-05:00

Photo Courtesy of www.veer.com

Let’s talk branding.

The old-school definition of “brand” is very customer facing. It’s what people associate with your business and its products / services. It’s your image to the external world.

But if you really stop and think about it, your company’s branding can be applied to your people too. It’s how your people feel when they go to work each day. It’s what their job means to them. It’s where they spend a lot of their time. It has a major impact on their life – positive or negative.

Your internal brand is the DNA of your organization. A strong internal brand can help to drive your company’s continuous growth and success, from the bottom up. It can create a positive impact that extends to your people, customers, and community. So, with those benefits in mind, let’s look at three ways you can make it happen:

MOTIVATE

Today’s employees, by and large, have moved beyond the simplistic carrot / stick, reward / punishment model of employment. To be sure, the bottom line is crucial for your people – just as it is for you. But just like you, your employees want more than a simple paycheck; they want to feel rewarded, empowered, and fulfilled.

As this successful business leader points out, there are plenty of ways you can motivate your people: offering praise, sharing rewards, and even creating a more unified organization by eliminating project managers or direct supervisors (after all, nobody wants to let down their team). Adopting these techniques can lead to happier, more productive employees who enjoy their work and the day-to-day challenges of their jobs.

COLLABORATE

Good things happen when talented people put their minds together; innovation and fresh perspectives that challenge the status quo tend to flourish in collaborative environments. Fortunately, collaboration is easier and more convenient than ever. For example, consider using these powerful tools to share files and ideas.

It’s also helpful to remember that ideas are like water. They flow naturally. Each molecule of that idea-laden H20 wants to move around obstacles. Given the water-like nature of ideas, what sort of work environment would be the best to nurture brainstorming and innovation? What would help things flow?

One approach is to create a mindset that encourages collaboration – for example, you could schedule idea-sharing meetings where your employees determine the topics that are up for discussion. Along the same lines, you could also:

Make everyone feel comfortable showing their quirky and creative side.
Be adventurous and open-minded.
Foster open and honest relationships, built on a sturdy foundation of clear communication.

Also consider the actual layout of your work environment. While the cubicle-filled office might be right for some businesses, it’s also important to think about its possible limiting impact on innovation and fresh thinking. The right workspace, on the other hand, can help the ideas flow and flourish.

CULTIVATE

Regardless of how your office is laid out, there are steps any business owner can take to cultivate a great workplace. As the video at the bottom of this insightful post points out, successful entrepreneurs have common recommendations to create a strong internal brand:

Be humble. Remember that your people have lives outside of work.
Hire great talent. Smart, talented employees will improve your results – not to mention, make your job more enjoyable.
Set a clear vision and values. These can guide your decision making, as well as guide and inspire your team.

Think of it this way: You’ve invested your heart, soul, blood, and tears into your business. It’s your baby. But sometimes, it’s easy to lose sight of the fact that your employees have their own passions, goals, and dreams. If you keep those dreams in mind, while surrounding your employees with like-minded talent and setting a clear vision for where you’re headed, you’ll create a climate where your people can thrive, grow, and look forward to coming into work every day.

There’s no big mystery in building an internal brand that you and your people can be proud of. Any business leader can motivate, collaborate, and cultivate. Are you ready to take the first steps?

Social media has also created new opportunities to improve your internal collaboration. Check out this article to learn about tools such as forums and blogs that can help your people collaborate, along with related advice for setting realistic goals as you build your internal brand.

Write down a handful of traits and qualities that characterize your internal brand, then list the traits that you would ideally like to have. Are there any major gaps? And if so, how can you take action to immediately start bridging those gaps?

How Can Disruptive Thinking Move Your Business Forward?

2011-11-18T15:45:25-05:00

Photo Courtesy of www.istockphoto.com

What do on-demand rental cars, music downloads, mailed DVDs, and online encyclopedias all have in common?

Each one – Zipcar, iTunes, Netflix, and Wikipedia, respectively – disrupted their industries. Their game-changing, paradigm-shifting business models challenged conventional wisdom and created a new way of adding value for their customers.

This, in a nutshell, is what disruption is all about. Rather than building on an established approach, disruptive products and services are unexpected innovations that can displace the established way of doing things.

Let’s take a look at four ways that disruptive strategies can work for your business, along with real-life examples of disruption in action:

Advantage #1: Targeting New Customer Groups

Disruptive products and services can open the door to customer groups that were previously out of reach. The idea is simple: if you can find new ways of adding value and meeting customers’ needs and wants, you’ll be able to target entirely new markets. Look at your industry from a fresh perspective. What would happen if certain rules of the game – the things that everyone takes for granted – were re-written by your business?

Disruption in Action: Apple’s iTunes offers a familiar example of disruptive technology uncovering new customer groups. Prior to iTunes, Apple had no way to take advantage of the accelerating trend from physical CDs to music downloads. Their wildly successful business model changed the game, and created a way for Apple to capture revenue from online music consumers. By 2010, iTunes accounted for more than 64% of all revenue generated in the on-demand music industry – and a healthy chunk of the company’s bottom line.

Advantage #2: Adding a New Spin on Existing Products and Services

Disruption can also put a fresh spin on something that already exists. For example, think of one of your current products or services. What would happen if you tweaked that offering in a way that challenged the conventional wisdom of your industry? You’d be leveraging what you already know, but applying that knowledge in a new way in order to better meet the needs of your target customers.

Disruption in Action: Car rentals used to be a straightforward service; no matter which company you dealt with, the customer could count on time-consuming paperwork, waiting in line, and face-to-face interaction. Zipcar flipped the script, eliminating these annoyances with on-demand, hassle-free rentals.

Advantage #3: Improving Your Internal Performance

Disruption can also happen internally, within your business. Take a look at your own workflow. If you find pain points or inefficiencies, challenge those processes! Upsetting the status quo can reveal new ways to save time and money. Internal disruptions can also provide the inspiration for disruptive products and services.

Disruption in Action: The inspiration for this disruptive business was something familiar to most entrepreneurs: revenue-draining credit card fees. Seeking to find a better way, the owner developed a solution to this problem, and in the process, designed a game-changing business model that’s taking on the entire credit card industry.

Advantage #4: Anticipating Emerging Threats

Are you in danger of being caught off guard by a competitor’s disruptive strategy? Next time you take a look at the world around you – for example, during a SWOT Analysis – take a long, hard look at your competition and their capability for disruption. Planning from this outside-the-box perspective will leave you better prepared if your industry is disrupted.

Disruption in Action: For a cautionary tale about overlooking the threat of disruption, look no further than Blockbuster. The organization’s entire business model – a highly successful approach back in the video rental days – was upended by the disruptive technology of Netflix. You know the rest of the story, but it’s not hard to imagine a different outcome if Blockbuster had paid more attention to emerging disruptive threats such as Netflix’s DVD-by-mail service.

So…How Can You Get Started?

As we’ve already seen, there are many real-life examples you can learn from as you develop your own disruptive strategies. As this article notes, many of those successful disruptions “go after an industry or process that is excruciatingly painful and make it better.”

For a different take on creating disruptions, check out this brief step-by-step guide. These steps can help you find ways to focus your disruptive energies, challenge industry clichés and conventional wisdom, and create innovative “what if” scenarios.

If you’d like to dive deeper into the world of disruption, check out one of the in-depth books by Clayton Christensen. An expert on innovation, Christensen applies disruptive thinking to business, education, healthcare, and more. His first book, The Innovator’s Dilemma, is a good place to start.

What Does Your Business Model Look Like?

2011-10-28T16:01:08-04:00

Photo Courtesy of www.istockphoto.com

A picture is worth a thousand words. But have you ever painted a picture of the way your business works?

Unless you’re an entrepreneurial Picasso, this might sound like a daunting task. You might find yourself staring at a blank page, wondering how to visualize concepts like business channels and revenue streams. It might even be unclear what elements of your business you should include. But if you were able to paint an accurate picture, the benefits would be many; a visual business model can help you:

Focus on the critical, make-or-break questions
Spot potential opportunities and areas of weakness
Test your assumptions and improve your existing approach
Experiment with new strategies

Enter a simple and innovative new concept called the business model generation canvas. This canvas – available as an iPad app and a downloadable PDF – combines nine elements to create a common-sense overview of your business and the way it interacts with customers.

As this 2-minute video shows, these nine puzzle pieces form a powerful, eye-opening big picture that maps everything out on a single page. Let’s take a quick look at each of these areas and see how they relate to crucial questions about your business.

Customer Segments: What groups of customers are you aiming for with your products / services? What are your best customer groups? These are crucially important questions; click here to see how a company might identify the four best market segments for its business, and here to see how it would determine what its best customer groups are.

Value Proposition: How are you creating value for your customers? Do you offer superior performance? A unique, customized solution? An innovative product or service?

Customer Channels: How do you communicate your value proposition to your customer segments? How do you make those customers aware of your product/service? How is it delivered, and how do you offer support following a sale?

Customer Relationships: How do you acquire and retain customers? How can you build a deeper, more profitable relationship with your existing customers? Do you focus on personal, one-on-one interactions, or do you prefer to take the self-service approach – for example, allowing customers to change the terms of their service on your website?

Revenue Streams: All the activities described above are going to generate income. But what are your customers willing to pay? What do they currently pay, and what would they prefer to pay?

Key Resources: What resources do you need to serve your customers, deliver on your value proposition, and tap into your revenue streams? This includes physical assets such as delivery vehicles, intellectual property and branding, financial resources such as lines of credit, and of course your human resources: the people who make it all possible.

Key Activities: How do you execute your strategy? What do you need to do in order to satisfy your customers?

Key Partnerships: Who do you partner up with to make your business more efficient? Who should you partner up with? Are any existing partners no longer a good fit?

Cost Structure: What are the costs that you incur from your resources, partnerships, and activities? How can you bring these costs down?

There’s nothing ground-breaking about looking at each of these nine areas independently; you’ve probably already given them a lot of thought. But the real “a-ha” moment comes when you see everything on the same page. For example, you’ll be able to visualize how targeting a new customer segment might change your revenue streams. You could see how new partnerships might help you bring down your costs or serve your customers more effectively.

The bottom line? Everything is interconnected. A big-picture view will help you dig deeper into those relationships, test your assumptions, experiment with new strategies, and create a better business model. So, what does your canvas look like?

If you don’t have a firm grip on your position in the market, or you’re unclear about your strengths and weaknesses, a SWOT Analysis is a great place to start. To find out how to use this powerful planning tool, check out this example .

Now that you know about this concept, give it a whirl! Download the app or PDF linked above, pick one of your revenue streams or customer groups, and work your way through each area. What does the canvas look like? How does each of those puzzle pieces fit together? (As this entrepreneur points out, simplicity is best when you’re using the canvas; instead of trying to fit every revenue stream into just one model, build multiple models, and then draw conclusions about your overall business.)

Fresh Ideas for a Challenging Marketplace

2011-10-14T12:01:36-04:00

Photo Courtesy of www.istockphoto.com

When’s the last time your organization had an infusion of fresh, inspiring, downright awesome ideas?

Are you in touch with what your people are thinking? Is your senior management team exploring and sharing new perspectives?

In a world that’s always changing, these are crucial questions. To adapt to this shifting landscape, business owners require a healthy dose of fresh and innovative thinking. Luckily for us, there’s plenty of fresh thinking out there; it’s right outside your office door!

Crank up the internal idea engine

Sometimes the best ideas are right in front of you. Do you have a work environment that encourages sharing ideas at the office? Do your people feel comfortable presenting new ideas, suggestions, and constructive criticism that challenges the way things are done?

If so, you’ve already set yourself up to tap into an incredible source of innovative ideas. Internal collaboration is so effective because it:

Challenges the status quo
Brings in feedback and suggestions from the front lines
Gives your people a vested interest in the company's success

Here’s another way to think about it: When you hire great people, your ultimate goal is to have them make solid, well-informed decisions – and in turn, leave you with more time to focus on your business. Your internal idea engine can create the perfect environment for that to happen; if your people are communicating and sharing with one another, they’ll be in a much better position to make the right decisions.

So how can you get that idea engine humming along? Start by asking yourself…

Have I clearly communicated to my team why we do what we do?
Do we have clear values and a vision that consistently drives everything we do?

If you can answer “yes” to these questions – and if these things are clearly understood by your team – you’ve already created a fertile climate for growing great ideas that can help your company move forward. Any company can benefit from the resulting clarity and focus; in fact, these are the same principles that Steve Jobs firmly embraced during his tenure at Apple.

Tear down the walls

To get your people on board, build an environment that encourages openness. What are the barriers preventing the free exchange of ideas? How can you knock them down? Ask these questions of yourself, your senior managers, and your front-line employees.

Let’s say that after asking your team, you discover that new ideas are getting lost in the noise; amid the day-to-day hustle and bustle of operating the business, there’s nowhere to capture them. If that’s the case, you might consider an online sharing tool – something like this or this – which can help your organization capture ideas, organize them, and build on them.

Also think about the way ideas flow between you and your senior managers. Here, you can take another page from Apple’s playbook.

A lot has been written over the past week about the entrepreneurial genius of Steve Jobs. But one of his most successful innovations wasn’t a piece of hardware – it was the way he set up Apple to share ideas at the top.

As this article describes, the tech giant was able to make instant course corrections – for example, changing the price of a product right before it rolled out the door – because it had a unified team at the top, rather than separate divisions. Any organization, from small business to Fortune 500 giant, can benefit from the free flow of great ideas between its leadership and managers.

Online sharing has made collaboration faster, easier, and more convenient. Click here for a thorough list of web-based collaboration tools and apps.
Social media also offers new ways for your people to put their minds and ideas together. Read this article to see how social media tools can be used to share information and get ideas moving back and forth.

Done right, brainstorming at the office is another great way to tap into the collective cranial firepower of your employees. Set up a brainstorming session around a key issue, and include both managers and front-line employees who deal with your customers every day. (Click here for outside-the-box ideas on setting up successful brainstorming sessions.)

Three Questions You Should Always Be Asking

2011-09-23T16:40:38-04:00

Photo Courtesy of www.istockphoto.com

How many times a day do you find yourself answering questions?

Whether it’s responding to a customer request, clarifying the organization’s strategy, or addressing employee questions during a meeting, the typical business owner spends most of their time on the “A” side of Q&A.

Now let’s flip the script. How many times a day do you ask questions?

You might have to think harder for his one. After all, entrepreneurs are expected to have all the answers. This is one reason why it can feel so lonely at the top. However, the questioning business owner has a big advantage; an inquisitive mindset can pay big dividends, especially when it comes to...

Getting timely and accurate information
Challenging assumptions and conventional wisdom
Connecting with your people

As this article points out, asking the right questions helps you dig deeper into three key areas of your business: plans and projects, your overall organization, and your own habits and assumptions.

With this in mind, let’s look at three questions that are especially useful. By constantly asking them of yourself (and your people), you’ll help to keep your business headed in the right direction:

Question 1: Does this support our strategy?

This question is like a 300-pound bouncer guarding the entrance to your business. Before being seriously considered, any proposed idea must first meet with the bouncer’s approval. Suggestions that don’t pass muster are kicked to the curb. This is an easy and effective way to filter out the poor-fit ideas, focusing only on those that keep your business moving forward.

Let’s say, for example, that one of your senior product managers proposes a plan. “To move forward in today’s challenging marketplace,” she says, “we’ll position ourselves as the low-cost leader.”

Is her suggestion a good idea? It might sound good on paper; you could beat your competition on price and gain more market share. But unless it supports your strategy – keeping you on track to meet your long-term goals – it’s probably a non-starter. For instance, the low-cost approach could actually hurt your business if your strategy centers on serving a customer group that prefers higher quality over lower price. Alienated by the perception that your product or service is now a cheap commodity, they might be inclined to turn to one of your competitors.

With your trusty strategic bouncer at the door, these sort of poor-fit ideas will be turned away without wasting as much time, energy, and talent.

Question 2: Does this help us meet our customers’ needs and wants?

This is another question that separates the wheat from the chaff. It can serve as a constant reminder to analyze and truly understand what your customers want or need, which could help you avoid being blinded by other motivations, such as the desire to boost revenue or sales.

Consider the recent decision by Netflix to increase its prices. The company figured that raising rates would bring in more revenue, but didn’t count on customers abandoning the movie service in droves. After hemorrhaging subscribers, they’ve decided to restructure and split off their DVD-by-mail business into a separate division. Time will tell whether this move can help them regain their prior momentum.

In hindsight, Netflix could’ve spared itself the pain of this stop-and-start move by asking how the rate hike would impact its target customers. Their lesson is clear: careful analysis and consideration before a big decision can help you avoid making a mistake that costs you time, money, and resources.

Question 3: Is this clearly communicated?

Effective communication is the glue that binds any professionally managed organization. Imagine, for example, that you’ve just made some tweaks to your strategy; in response to changes in the marketplace, you’re pulling out of a market segment.

Without a clear explanation for this decision, your people might assume that the move is a sign that the company is in trouble – or even worse, that their jobs are at risk. By clearly communicating the reasons for your decision, along with your plan for moving forward, you’d nip that uncertainty and ambiguity in the bud.

This question is just as crucial when it comes to communicating with your customers (and potential customers). Marketing efforts are far more effective when you clearly explain who you are, and how you help your customers. Clarity and consistency in your communications can help you forge deeper, longer-lasting relationships. It’s also worth noting that the same principles apply to one-on-one interactions with your clients – for instance, when they call you with a question or request.

We’ve just seen the power of asking simple but meaningful questions. Here are five more useful questions, touching on everything from potential customers, to possible threats, to the future of your business.
So how can you ensure that you’re always asking the right questions? Here are some helpful suggestions.

Create a checklist of important questions, such as the ones we’ve outlined above. Then, before making any significant decisions, work your way down that list. This can keep you focused and ensure that you give each of these questions due consideration – even in the heat of the moment, when the pressure is on and you don’t have the luxury of taking as much time as you’d like.

Are You Using Your Time Wisely? Boost Your Personal Productivity with These Five Simple Steps

2011-09-09T16:54:01-04:00

Photo Courtesy of www.istockphoto.com

You’ve just arrived home from the office. You got there early, ate lunch at your desk, worked late, and are now utterly drained after a hectic and busy day. Still, there’s no sense of satisfaction from a job well done; instead, you feel as if you’re running on a treadmill. You’re tackling the daily challenges – endless emails, fire-drills, and new issues – but can’t seem to find the time you need to move your business forward.

If this sounds familiar, you’re not alone! The entrepreneurial treadmill is a common situation for business owners. Faced with the daily onslaught of tasks and issues that demand attention, it’s hard to stay focused on what truly matters to the business. So, how can you stop running in place and regain your forward momentum?

It all boils down to improving your personal productivity, which can help you...

Strike a better work-life balance
Spend more time working on new ideas and innovations
Focus on your company’s most important issues
Lower your stress levels and regain your sanity

With that in mind, here are five steps you can take – right now – to jump off the treadmill and manage your time more effectively.

1. Stop doing the wrong things.

We’ll start by literally taking a page from The Effective Executive, Peter Drucker’s timeless book on entrepreneurial time management. (The book is available here).

Drucker’s notion of time management was simple: business leaders are constantly pressured to spend time on activities, such as attending every staff meeting, that don’t produce real results. By identifying and eliminating those tasks, you’ll have more time to focus on running your business. Ask yourself…

What activities waste my time without getting results?
What would happen if I stopped doing those things altogether?
What could be better done by someone else?

The goal here is to cast off the dead weight. Although it might require some deep thought initially, you’ll soon find yourself with more time to focus on what you should be doing.

2. Don’t be a slave to your inbox.

Nothing symbolizes our hectic digital lives like the full inbox. Sure, there are probably some important messages in that overflowing folder of unread email, but it’s time-consuming to separate the wheat from the chaff. And to make matters worse, checking your email can turn into a stubborn habit that distracts you from more important activities.

How much of a time-hog are these electronic messages? Well, consider the productivity survey found within this article, which found that office workers spend an average of 7.3 hours a week handling email. That’s almost a full day of work! To tilt the playing field back in your favor, consider these steps:

Check your email just a few times a day. In our always-connected, instant-response world, this might seem like heresy. But think about it: how often do your incoming emails demand an instant response? Consider changing your email settings so new messages aren’t downloaded automatically – instead, only when you click the send / receive button, or set it to refresh every few hours.
Don’t bother filing your emails into different folders. Deciding where to file messages can eat away at your valuable time, and the best category for an email might not be obvious at first glance. Instead, simply use your email client’s search function.
Create templates for responding to common questions and requests. If you find yourself saying the same things over and over again, why not create a few emails that you can simply copy and paste – perhaps with a few customized tweaks?

If you’d like to know more about optimizing your inbox, this blog has elevated email management to an art form.

3. Focus on staying focused.

Multitasking is also taken for granted in this digital age. It’s all too easy to do many things at once. But this is a double-edged sword; multitasking can create a big distraction, especially for important issues that require your full attention and brainpower.

One way to create focus is to use the Pomodoro Technique, a method that can help you work more productively on a single task. The premise is simple: do one thing for 25 minutes, then take a five-minute break. You’d be surprised at how much you can get done when you work through your to-do list in these 30-minute chunks. Of course, your own attention span might vary. Maybe you’re better working in hour-long or 90-minute chunks. Use the same principle, customized for whatever timeframe suits you best.

4. Use technology to your advantage.

New technologies such as smartphones, tablets, and apps can be a double-edged sword. They hold the promise of making your life more convenient – but if you don’t understand them, the resulting confusion can actually cost you valuable time. For example, the new features in an operating system update might get in the way of your daily workflow. Take some time to learn these additions and use them to your advantage.

On the mobile app front, there’s no shortage of programs designed to improve your productivity. Here are three task management apps that you might find useful. On the same token, consider eliminating the time-wasters and distractions – we’re looking at you, Angry Birds – from your smartphone or tablet.

5. Create a culture of productivity.

The above steps can also help your people improve their own productivity. Imagine, for example, an office where everyone checked their email only four times a day – once every two hours. And when it came to internal communication, face-to-face interaction and direct communication would replace frequent emails.

A more productive workforce is naturally better for your organization – but it’s also good for your own life; if your people are getting more done, they’ll be better equipped to handle tasks you delegate to them.

How should you prioritize your tasks? One approach is to split your to-do list into four categories: urgent and important, not urgent but important, urgent but not important (this category would include interruptions and other distractions), and not urgent and not important. The goal is to carve out enough time to focus on the second category, so you can minimize the time spent on the others. Additional prioritization tools are covered here.

Reality Check! Five Ways to Move Forward in Today’s Challenging Environment

2011-08-25T15:48:21-04:00

Photo Courtesy of www.istockphoto.com

These days, it’s easy to be overwhelmed by the prospect of a double-dip recession – or even a prolonged period of stagnant growth. The idea of a challenging economy doesn’t sound very inviting. But what does this really mean for business owners?

In a nutshell, it means we’re simply in a different operating environment. Change is inevitable for businesses, and there are always new challenges to confront. Unmanaged growth, for instance, can be just as threatening as a weak economy. The way to combat these issues (whatever they may be) is to position yourself ahead of time, before the shifting landscape knocks you off your feet.

So, in light of the challenging economic environment we’re currently faced with, here are a few ways to move forward. While all are important steps, we’ve prioritized them – beginning with the most important:

1. Strengthen the connection with your customers.

Consider how the economic doom and gloom is impacting your customers. Are they scaling back their spending habits in anticipation of another downturn? If so, do your pricing strategies reflect these changes?

There are plenty of ways to see where your customers stand. You can analyze your sales figures. You can conduct a timely survey, or have a simple one-on-one conversation. (Click here for more information on meeting your customers’ changing needs and wants.) Also, reinforce (in your customers’ minds) how you differ from the competition. What do you provide – for example, timely delivery or superior service – that the competition can’t?

2. Communicate with your people.

Your people are also being fed a steady diet of negative news. As a result, they might be nervous that their job security could be on the line. In these uncertain times, it’s more important than ever to provide a sense of security.

Communicate early, often, and clearly with your staff. Make yourself readily available to answer questions or address concerns. Listen with an open mind. Your people are an invaluable source of information beyond the typical third-party news sources; they know better than anyone what’s happening on the front lines.

Do your people have a clear sense of where your organization is headed? Do they know how they’ll fit into those plans? Providing the answers can clear up the ambiguity, and in turn, help them focus on doing their jobs. The alternative – an icy silence that leaves them in the dark – could lead to productivity-sapping uncertainty.

3. Draw a line in the sand.

This is a very good time to get a handle on your key metrics. How much do you have to sell in order to remain profitable? What leading indicators will let you know if your business is headed in the right direction? What needs to happen to achieve your strategic goals?

A monitoring system can help you answer these crucial questions. It can help you make course adjustments and alert you to threats that are looming on the horizon. For more on keeping track of the things that truly matter to your business, check out this Top of Mind post.

Both the marketplace and your company are always in flux. As such, your business controls should be regularly evaluated, challenged, and updated. Frequently ask these questions to ensure that you’re monitoring the right things:

Are your controls still giving you the information you need to guide your business and make any necessary adjustments?
Given the changing economy, are your existing metrics still valid?
What else should you be watching?
And most importantly, is there anything you should stop watching?

4. Stay focused on what you do best.

A tight focus is essential for surviving a challenging economy. The entrepreneur in this story is a prime example. Confronted with the previous downturn, he realized his business had moved beyond its original mission; in better times, new projects had expanded the company into areas that weren’t a very good fit. The solution was to return to the roots: the things it did best and the areas where it could most effectively serve its customers.

As the business owner explains, "Collectively as a company, we went back to where we were in 2006…we retracted to what made us successful to begin with." Has your focus gotten too broad? Are there new products or services you’re offering that aren’t adding much value to your clients – or even worse, taking resources away from what you do best?

5. Filter the noise!

These days, there’s no escaping the endless parade of frightening economic news and dire predictions. This negative news cycle isn’t conducive to running a business. In addition to distracting you from doing your job, it can also cloud your perspective and your judgment. So, make it a point to filter the noise. Focus instead on the trends and factors that could directly impact your business.

For more advice on dealing with a difficult economic environment – a climate where sales are down and cash-flow can become problematic – check out this article, which also includes real-life examples of entrepreneurs who successfully adapted to hard times.

Scenario Planning: How Can it Help Your Business Adapt and Thrive?

2011-08-12T13:13:21-04:00

Photo Courtesy of www.istockphoto.com/

It’s been quite a while since I felt this way. The sense of uncertainty lingering in the air like a heavy fog. The feeling of hesitation and insecurity for what the future holds. The underlying sense of pessimism everywhere I turn.

Now, I’m hearing all this talk of a double-dip recession. Some media outlets seem to be chomping at the bit to declare that that’s already the case. I’ve been operating my discount shoe business long enough to know my monthly sales tell the real story – not the economic indicators. But, suffice it to say, things are looking pretty unclear. The U.S. credit rating downgrade and market turmoil didn’t help matters.

The good news? I have a tool within reach that allows me to make sense of the uncertainty. It also helps me sleep better at night. It’s called scenario planning, and it’s already changing the way I think about the future. This simple-yet-powerful tool offers serious benefits for the small business owner. It can help you:

Get a grip on the political, economic, social, and technological factors that could impact your business down the road.

My top two factors can be boiled down to unemployment and healthcare regulations. Over the past year, I’ve seen a direct correlation between the labor market and sales; people will put off buying new shoes if they don’t have jobs. The second factor is something that could increase my costs and limit my growth. But within this hotly contested political environment (and the 2012 elections just around the corner), nothing is set in stone; a new Congress or President could alter the healthcare regulations.

Weigh the tough decisions that shape the future of your company.

Scenario planning is great for adapting to the changing marketplace. When it comes to making big decisions about your business, it’s equally capable. Imagine, for example, that you’re thinking about buying a smaller competitor. Using the approach outlined here, you can create alternate futures that could impact your decision. Knowing these possibilities – and “living in them” by creating detailed scenarios – can inform and guide you during the decision-making process.

Plan for low-probability, high-impact events.

This tool is also very good at helping you plan for the low-probability, high-impact events that could shape your business. This article notes how the CEO of AutoNation used this approach to become more profitable during the recession. That’s an impressive feat, considering the auto industry’s turmoil. Regardless of the environment you’re facing, this type of thinking – which really boils down to living in the future – is essential for your long-term success.

So how do you do it? Scenario planning isn’t something that requires a lot of time or effort. It can be boiled down to five simple steps. First, create a planning time horizon – for example 2-3 years. Then...

Step 1: List and prioritize the outside forces that will impact your business over that time period.
Step 2: Using the two most important factors, make a grid; one factor is the X axis, and the other is the Y axis. The two ends of the axis are opposite extremes (for example, fewer regulations vs. higher unemployment, or stable regulations vs. lower unemployment).
Step 3: Brainstorm what the possible future will look like for the four quadrants on your grid. (fewer regulations and higher unemployment vs. stable regulations and lower unemployment, etc.)
Step 4: Figure out the implications of each of the four scenarios, and then determine specific actions to adapt to those changes.
Step 5: Develop metrics to track your two key factors over time.

This online tool, which guides you through these steps in deeper detail, can be used to record your thoughts and save your scenario plan. (As the instructions point out, the tool can also be used to get a grip on the personal factors in your life. Very useful stuff!)

To make the most of the scenario planning tool, consider these questions:

What shifts are taking place within your industry?
What external forces keep you up at night, and how could they impact your strategy?
Is each of your scenarios plausible and distinct from one another?
Have you involved your senior management in the planning process?

One of the great things about scenario planning is that it doesn’t require a lot of time or energy. Next time you have an hour to spare, sit down and start to work through the process. If you’d like to see a case study of this tool in action, check out this link.
As you develop your different scenarios, it’s important to bring in a wide range of perspectives. Check out this link for useful ideas that can help you paint a full and accurate picture of the (potential) future, as well as avoid common scenario planning pitfalls.

Coming in From the Cold: How to Position Your New Employees for Success

2011-07-22T10:27:25-04:00

Photo Courtesy of www.istockphoto.com/

The lost traveler is relieved. After a seemingly endless search for comfort, shelter, and security, they’ve finally come in from the wilderness. The traveler knows that better times may lie ahead. Nonetheless, fear and uncertainty linger like dark clouds after a torrential storm. Shell-shocked by their difficult journey, they struggle to relax, focus on the future, and shake the feeling of impending doom.

Is this the plot of the latest lost-in-the-wild TV drama? Nope...it’s the mindset of workers who have managed to find jobs in today’s challenging labor market.

According to the Labor Department, roughly six million Americans have been out of work for more than half a year. As this article points out, there’s a negative psychological impact for these would-be workers. Being on the sidelines of the labor market for an extended period of time – six months, a year, two years, or even more – can lead to despair and pessimism. Long-term unemployment also leads to an erosion of knowledge and technical skills – the “use it or lose it” stuff that tends to fade over time.

In today’s economy, many of your new employees could be coming in from the wilderness. Like the lost traveler, they’ll be relieved to have a job – but also fearful that it won’t last. Needless to say, fear and uncertainty aren’t good emotions to start a new job with. These lingering feelings could lead to constant second-guessing on the part of the new employee, hampering their performance and making it harder for them to become part of your team.

Business-as-usual simply won’t fly in the changed labor market; when you hire someone in this environment, it’s in the best interest of both you and your new talent to give them training and support they need to get back on their feet. So, how can you make these employees feel comfortable, secure, and ready to thrive in their new positions? How can you get them up to speed so they can hit the ground running?

Lay out the welcome mat

It’s crucial for new employees to have a clear sense of your mission, vision, and values. Consider sitting down with each new employee and spelling out where your organization is headed, how they fit into those plans, and why their role is important. Have a one-on-one conversation. Get to know them, and make them feel welcome. If you have an open-door policy, let them know that they’re always free to come to you with questions and concerns.

Openness is all about building a comfort zone, where newcomers will feel welcome and have a better understanding of how they fit in your organization. This will foster a sense of mutual trust, helping you and your new employees address issues as soon as they arise. The alternative – kicking the problem down the road, or letting an issue fester – can lead to deeper problems in the future.

When it comes to your mission and vision, you might also benefit from a refresher meeting with your existing employees. This could give them the same clarity about your organization’s direction and purpose, and their role in making those things happen. It’s a great way to keep investing in one of your company’s most important assets. (If you don’t have your mission, vision, and values defined yet, there’s no time like the present! For more on building a vision, check out this article from Harvard Business Review and this Fox Business interview with Joe Kelly, an Aileron facilitator.)

Ease their frazzled minds

Step back for a moment and put yourself in the shoes of a new employee. Let’s say you’ve just started a new job after a painful, year-long job search. A lot rides on you keeping the position. There are bills to catch up on, mouths to feed, maybe a mortgage to maintain. Your thought process will probably be dominated by one very simple question: “What do I need to do to thrive in this job?”

To answer that question, provide your new recruits with crystal-clear expectations. Let them know exactly what’s expected of them in their new role. Show them what needs to be done to not only keep the job, but excel at it. And to make sure they stay on the right track once they get started, don’t hesitate to offer ample feedback on their performance during their first few months. (We previously talked about setting performance expectations in this post.)

Help them regain their strengths

After their long struggle, your new employees will be hungry for new knowledge and skills. They may need a training program: the mental equivalent of a robust workout program that gets them back on the top of their game.

Training is important in any labor market – but in today’s environment, it’s more important than ever. Consider setting up a timeline, outlining the things that need to be learned and accomplished within the first few weeks. And to ensure that all your new recruits have the same experience, designate one of your staff to be the trainer for onboarding. Allocating this resource is an investment that will produce an immediate return. Additional training tips can be found here.

Training new employees is one of the best investments you can make. This investment can…

…give your people the tools they need to succeed. The ultimate payoff is a happier, more productive team.
…provide you with a competitive advantage. Your business will stand out as a great place to work – and in turn, help you attract better talent in the future.
…help you level the playing field with larger organizations, which often have extensive new-employee training. (And since they’ve been chomping at the bit to start working, your new team members will probably be excited to start learning, making them extra-receptive to your training program.)

The Business of Giving: Five Ways to Ignite the Philanthropic Spirit

2011-07-08T11:43:02-04:00

Photo Courtesy of www.istockphoto.com/

Fact: Your business is sitting on a powder keg of philanthropy. With the right ignition source, it can unleash a wave of giving that benefits both your community and your business.

Of course, it’s not always easy to ignite that altruistic powder keg. As a business owner, you might struggle to find the necessary resources to start a giving program. And the most traditional route – simply signing over a check to a charitable organization – isn’t always the best way to help the community (or your company).

Fortunately, there’s no shortage of ways that small businesses can give of their time, talent, and treasure. And while benefits such as tax breaks and improved brand exposure might help your organization, there are far more inspiring reasons to give back to your community.

By living and breathing the selfless spirit, you can:

Support and reinforce your organization’s values
Strengthen your culture
Inspire your people
Gain the deep satisfaction that comes from helping others and being a catalyst for positive change

But wait…doesn’t philanthropy belong more in the realm of large corporations, who are flush with cash and other resources? Not a chance! Every day, small businesses across the country make an incredible positive impact on their communities. As this article points out (while busting other common myths about small business philanthropy), no company is too small to give.

So with that in mind, here are five philanthropic thought-starters: potential sparks that could ignite the spirit of altruism within your business and community.

SPARK 1: Leverage social media

Today’s technology offers new ways of giving – a sharp contrast to simply pulling out your checkbook and donating to a charitable foundation. For example, you could invite your customers (and potential customers) to “like” your Facebook page. In exchange for each of those “likes,” you could make a small donation – in their name – to a community cause or charitable foundation. Using a similar approach, you could use Twitter to direct your followers to a website related to your philanthropic program. Be sure to use a #hashtag to “brand” your effort and help it go viral.

SPARK 2: Commit random acts of generosity

Some of the most effective forms of philanthropy can come from an outside-the-box approach. For example, consider “random acts of kindness” – everyday generosity that requires minimal resources. While these random acts (such as a florist sending a bouquet to a Twitter follower who mentioned they were having a bad day) are often associated with marketing, they can also consistently highlight the fact that you genuinely care about your community.

SPARK 3: Donate your products / services

Your product or service adds value for your customers. It could do the same for someone in need. Are there any local schools, churches, or charity organizations that hold auctions? If so, this could be a great philanthropic fit. A travel agency could donate vacations, or a tech company could donate computer hardware. This approach could be particularly helpful during times when your cash flow is tight and money donations aren’t as feasible.

SPARK 4: Create a framework for giving (and getting noticed)

When you get a moment, check out this brief case study about a hardware retailer that turned itself into a powerful engine of community giving. The cliff-notes version is that the company, in its earlier charitable efforts, ran into a problem: it was swamped with donation requests from community groups but didn’t have enough resources to meet everyone’s needs.

The solution was to build a partnership program where the community groups promoted their involvement with the hardware business. This created a true win-win: the hardware store benefited from the boosted exposure and positive word-of-mouth, while the community organizations received much-needed assistance.

While not for everyone, organizations with the necessary time and resources can use a framework to build a more developed philanthropic strategy. If you fall into this category, you might be able to use a similar model to create your own win-win situation.

SPARK 5: Get your team involved

Get your people involved as a group – for example, by doing a team-based philanthropic activity. The potential benefits are threefold: you’re strengthening your team by getting them focused on a higher purpose that’s related to your business; you're showing your people that you care about their community; and you're showing the community-at-large that you care. Also consider combining this approach with one of the other ideas to create exciting, novel philanthropic strategies.

OK...now that we’ve covered some of the “how-to’s,” it’s up to you to take action! Your challenge, should you choose to accept it, is to fulfill at least one new philanthropic act within 30 days of reading this post. Once you do, tell us about it in the comments section, and also let us know about your own brilliant ideas for giving!

Here are some additional guiding questions to help you bring your philanthropic efforts in focus:

How do you or would you give of your time, talents, and/or treasures?
How does your philanthropy align with your industry?
How does your philanthropy align with your strategy and your values?
How can you get your organization involved?