Tag Archive for: Coaching

Leadership – Is Magic Your Strategy?

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I saw this cartoon and chuckled to myself. I instantly thought of multiple situations where this brand of leadership occurred. A group of leaders sitting around their conference table trying to fix a difficult situation or turn the company around without any solid solutions on how to fix it. I often wondered if anyone actually thought or wished that something would just magically happen to fix their problem. Is hoping for magic to happen the same as hoping that time will allow a difficult situation to resolve itself? Is that what the ostrich is thinking as it sticks its head deeper and deeper into the dirt? I guess if things happen to create a difficult situation, is it so unreasonable to sit back and let things “unhappen”? Yes, it is unreasonable.

Employees Count On You

No matter how big or small your company is, if you have one or more employees, you have a duty to do what is best for the future of the company. Employees generally take a leap of faith when they join your team. More than likely, they are looking for something beyond just a paycheck – especially the newer generations. They are looking to be part of something growing or moving in a positive direction. If their leadership team is sitting around the table hoping for something magical to happen, how committed do you think employees are to that team? On top of that, employees have expectations that their leadership team will have the capacity to work out solutions for these difficult situations or connect with outside experts that do have the expertise. Here’s a little insight – employees don’t mind if solutions don’t work every time. They mind when there are no solutions.

Customers Count On You

Your customers use your services and/or products because they provide value. They want to keep a relationship with you as long as you are providing positive value. As a customer, it is much easier to keep going to the same company than finding a new company. If customers gets a sense that your company is not capable of solving problems or adapting to difficult changes, they will quickly translate that to thinking your company is not innovative and will not keep up with the trends. They may not jump ship immediately, but be assured they are looking to do so.

Competition Loves This

How do you think a competitor reacts when they hear a leadership team in their industry is hoping for magic? Some may celebrate; knowing that they soon may get more customers coming their way. Others may focus on how they can be opportunistic and take advantage of this situation. How many competitors, do you think, will reach out to the struggling company and offer some free assistance?

Unfortunately, unless you are a professional magician, magic is not going to solve your problems. If you are in a leadership role at an organization, there are times when you are going to need to make some extremely difficult decisions to handle extremely difficult situations. Hoping things work out all by themselves is actually a decision – usually a bad one.

If your group is having a hard time finding a workable solution you have three options: change the makeup of the group, expand the group, or bring in some outside expertise to help facilitate the group. All three of these are better options than hoping for magic.

Contact Magic Mike

 

Business Mobility – How Do I Start?

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Recently I noticed, while talking strategy with business owners, most are trying to figure out what they need to do to prepare for the future. These conversations can generally be divided into three groups. The first group of owners know they need to do something to make their business better, but don’t know what their first step should be. The second group kind of knows what they need to do, but are so overwhelmed by the amount of change required, they just don’t know how to take that first step. There is one other group, we’ll call them the “lucky” group, that thinks things are fine the way they currently are and don’t need to make any changes. We’ll wish the “lucky” group continued success and focus on the first two groups.

If you know you need to make changes, but are having problems with that first step, what do you do?

The first thing you need to do is be aware that you are not alone.  This is a common problem almost all successful business owners encounter.  It’s part of growing a sustainable, adaptable business in the midst of a quickly evolving market.

There are five steps to achieving what I am going to call Business Mobility. My simple definition of Business Mobility is: moving your business from its current position to another. A simple definition and concept, but sometimes hard to achieve. If you have read any of my previous blogs, you will notice that I tend to repeat these next steps. I believe they are the foundation for positive change in an organization.

Clarify your existing situation

Take time and do a thorough review of all aspects of your business. Understand your company, customers, competition, and the current operating environment. I highly encourage you to do this exercise in a collaborative fashion. Include others in the process so you can incorporate their ideas and opinions. Many times, knowing your current situation better will give you clarity on what your next steps should be. In situations like these, completing a SWOTT analysis is very helpful.

Define where you want to go

Now that you have a better understanding of your current situation, what do you want to achieve? What is your vision for your company? It’s reasonable at this point to be a little fuzzy in your vision. This is another tripping point for some. Many like to have everything well-defined before they proceed. You may find that if you wait to get that much detail before you start, you will have given a head start to your competitors. One thing that may help with this process is a gap analysis to determine how far off you are from where you need to be. This type of analysis could be useful to prioritize what areas should be approached first.

Identify action steps

Now that you fully understand your current situation and have a concept of where you want to go, it is time to create the steps needed to get there. This is a difficult area where some people and, subsequently, companies become paralyzed. In these situations I find the quote “When eating an elephant take one bite at a time.”, by Creighton Abrams enlightening. The best way to handle a large project is to break it up into small, manageable pieces.  Even better, share these pieces with others. Like all other steps, it is important to collaborate during this step.  This keeps your action items realistic and it gets buy-in from your team.  If you are stuck trying to figure out what your next step is, ask your team this question, “What can we do in the next one-two weeks to make progress on this?”

Create a timeline

Once you have identified your first couple of action steps, define when you want these steps completed. These will be important milestones for you to gauge your progress and to understand if you are on the right track. I encourage you to keep the time between milestones pretty short.  Somewhere between one to four weeks is generally reasonable.  If you go out longer than a month before you check your progress, you are entering risky territory.  At the same time, you need to give your team enough time to actually make progress.  There is an art to this because the reality is you will probably have multiple action steps going on at the same time with different due dates. I encourage you to establish scheduled, structured progress meetings.  I would have these at least monthly, and potentially even weekly.  They don’t have to be long and shouldn’t be too long – quality is more important than quantity.

Be Accountable

One of the best ways to ensure your success is to have a partner that will hold you accountable for progress and give you feedback.  Leaders frequently provide guidance to their team and hold them to a set of standards. They do this because it creates a better team, but who is doing this for the leader? Who does the leader go to for feedback, guidance or explore new ideas? How effective is it when the leader is only accountable to themselves? There are multiple options to address this.  As the leader you can:

  •             Work with a peer in your organization, if one is available,
  •             Find a mentor that is able to work with you, or
  •             Engage a qualified business coach

Each person is different and every option might not be the best or even possible for everyone. The goal is to find someone you trust and respect that will provide value to you and your organization. This is someone who will be candid and willing to have difficult conversations with you. Their ultimate goal should be the same as yours – do what is best for you and your organization.  Remember, best does not equal easiest. By adding accountability to the action steps equation, you greatly improve the chances of success.

Unless you are a member of the “lucky” group, preparing for the future and constantly adapting your business will be an ongoing necessity.  Those that accept this and take the necessary steps to become proficient at handling it will have the highest probability of continued success. Your first step is right in front of you – take it!

If you would like to discuss these steps in further detail or would like some assistance taking that first step, please don’t hesitate to contact me.  I am here to help you!

Contact Mike

 

How Are You Responding To THE RULES?

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It’s been almost two weeks since the CFPB released its proposed rules that will cover short-term and longer-term credit products. It’s been hard for me to have a conversation with anyone in the industry without a majority of the conversation being dominated by THE RULES. This makes sense for several reasons:  they have been anticipated for a long time, they are extremely complicated to understand, they may restrict viable financial solutions to consumers in need, and they may radically change the way the industry does business. Granted, when I use the word “may”, it’s only because THE RULES are not final, yet. In my humble opinion, the proposed rules will become effective, and no matter what modifications, if any, are made due to the small business review panel, the final rules will be dramatic and transform the industry.

There is conjecture that the effective date of THE RULES will not be until 2017, which has given some breathing room to some. While that effective date may make sense, postponing action, even if the rules are not final, may be harmful to your operation. There may be some benefits in seeing the finished version of THE RULES to create a plan, but there are definitely benefits in taking some actions now. I’m going to touch on a couple of areas that you should consider as you create your strategy for the future.

Evaluate The Proposed Rules

You should spend some time, as much as necessary, to fully understand the proposed rules. Then, examine how they will affect your existing product mix and profits in the state(s) you operate. I’ve been reviewing and analyzing the rules since they were published and one of best things I have done is to discuss the rules with others to make sure what I am interpreting is similar to what they are interpreting. I suggest having at least one or two additional sets of eyes to review the rules and then get together to discuss what you think. Not only will this lead to clarity, it might also start a productive brainstorming session. Even though THE RULES are not final, it doesn’t hurt to look at several scenarios to determine what your business may look like in 2017.

Evaluate Available Products

Are you currently offering all of the available products in your state? When was the last time you reviewed your competition to see if they have discovered something new? I’m not suggesting that you rush out and add every single product to your mix immediately, but you should have a comprehensive list of available options for you to consider. For each product that you consider, you should model the profit potential, the likelihood of your existing customer base accepting this product, and, importantly, how long it will take to implement this product and work out all of the bugs. If you add a 12-month installment loan as a new product, it is going to take more than a few months to make sure your model works. If you add a product that requires you to change your marketing approach, that may also take some time.  That 2017 time horizon isn’t that far away anymore, is it?

What should you NOT do now?

I’ve given you just a couple of things to do, but there are also some things you should not do. First of all, don’t stop providing excellent customer service. Outstanding customer service is the trademark of the industry. You provide customers a needed service that they truly appreciate. Their demand for your products and services has not diminished because of THE RULES. Next, don’t stop becoming lean and efficient in every aspect of your business. Part of this process should include a review of your systems to see if they can accommodate aspects of the proposed rules. Does your loan management system have a built-in CRM? How well does it handle installment loans? Do you have the ability to collect email addresses from your customers and then schedule email campaigns to them? Finally, don’t wait too long to start understanding and acting on the impact of THE RULES.  Granted, with a long time horizon and potentially grim prospects, it would be easier to wait and see, but as a successful business owner, is that the behavior that got you to where you are today?

The next two years are going to be challenging, there is no doubt.  This is an opportune time to establish strategic partnerships with those that can help you navigate this terrain. Whether it is a consultant with a needed expertise or a business coach to help you gain clarity on your future strategy, we are here to help you succeed.  Don’t wait to take your first step.

Contact Mike