Growth: Can you afford it?

“Grow or die!” is a common, well-accepted business principal. Businesses must innovate, stay relevant, seek new customers, add locations, and offer new products.

But growth brings its own challenges. You have more products/services to support. You need more people. Rapid hiring makes maintaining culture harder. New tools and technology – and the time to integrate and use them – are expensive.

Your bottom line may suffer from your growth!

You may need to take steps to grow your bottom line instead of your top line. Eliminate products/services that aren’t profitable. Eliminate processes or activities that don’t add value. Don’t do things just because you’ve always done them. And, as hard as it may be, let go of employees who no longer fit culturally and don’t contribute to you vision.

Your bottom line profitability ultimately decides if you can afford top line growth and how long you can sustain it.

Read more about the good and bad of business growth here:  http://opalpg.com/2018/08/21/growth-good-bad-ugly/

 

It’s true- you have influence.  People notice your actions and your words.

If you are a leader – at work, at home, in the community – in any capacity, people do pay attention to what you do and what you say.  Every interaction or observation can leave a lasting impression.

It’s up to you to decide if the impression left will be positive or negative.

I was reminded of the impact individuals have on those around them several times recently on both a personal and professional level.  It can be frightening and humbling.

Frightening when you realize that you don’t always live up to your own expectations much less the example you want to be for others.

Humbling to realize that no matter your circumstances, you have an impact.

It can also be energizing. As a leader in your company and your neighborhood, you have the potential to quietly make a tremendous impact – often without saying a word.

Are you living up to your stated values and beliefs?  Does every interaction make a deposit or withdrawal from someone’s emotional bank account?  Are you living life as a servant leader putting others first?  Does your presence inspire your team?

If you can answer “yes” to all the questions above, you are a leader no matter what your role.  You have influence.

I’ve read a number of blogs and articles recently about how successful people start their day or the habits they follow.  As I reflected on the insights in those articles, two things became apparent.

First, people want to implement simple changes to make them more productive.

Second, helping businesses improve their processes is enhanced by helping individuals make the most of their time.

In light of those “aha moments” here are some easy-to-follow habits to help you use your time well.  Not everything will work for everyone, so try them and see what works for you.  The important takeaway is for you to feel more organized, in control, and less stressed by adjusting your routine.

Take control of your email.

  • Don’t leave messages unread when you leave for the day. Otherwise you are starting off the next day already behind.
  • Respond, file, or delete email when you read it the first time. If you need to take action later, flag it or leave it in your inbox.
  • Create rules for emails you receive on a regular basis, especially ones that are informational only. Let your email client help you keep the important ones front and center.
  • Unsubscribe from mailing lists you no longer value to eliminate clutter.

Start your day right.

  • Check your email first thing in the morning when you get up. Reply to the ones needed and send any new messages on items that are on your mind.
  • After your morning check-in is over, get some exercise and eat a good breakfast.

Build a routine and eliminate unnecessary decisions.

  • Eat the same thing each morning or prepare breakfast in advance the night before.
  • Pack your bag for the gym the night before.
  • Put the items you need for the day together so you can grab them all at once as you head out the door and not have to track things down (or forget them altogether).
  • Take a 5- or 10-minute break in the morning and afternoon to walk around. Getting away from your desk helps clear your mind re-energizes your body.
  • Keep a To Do list and mark off items as you complete them.
  • Give yourself deadlines.
  • Periodically clean your desk by throwing out or filing items that have accumulated.
  • Put time on your calendar to reflect on your business or job and what you need to do to make it more valuable or profitable.

According to a Gallup report, only 34% of US employees are actively engaged in their jobs.  Gallup defines “engaged” as “involved in, enthusiastic about and committed to their work and workplace.”

What about the other 66%?  13% are “actively disengaged,” and a whopping 53% are “not engaged” which means they show up and do their work but they aren’t connected to their work or their workplace.

Disengaged employees cost you money.  It is estimated that absenteeism, churn, and lack of motivation – signs of a lack of engagement – cost companies around $500 billion per year.

Writing for Small Business Trends, Victor Snyder, a business coach, says that business leaders should avoid these three things that cause employee disengagement:

  • Poor communication with employees
  • Ignoring your personal brand
  • Failing to develop leaders

If you make an honest assessment of your business, are you creating an environment that fosters engagement?

It’s true – inquiring minds do want to know, if you are talking about the people who make your business run every day.

I was reminded of this working with a client recently on some operational challenges. The client, who uses EOS, said during our discussion that it was surprising how putting a name in a box in an accountability chart gave his employees clarity.

He’s right. We forget that organizational charts, job descriptions, or a position matrix give people clarity in their roles and the roles of others.

Communicating strategy to everyone builds trust that the company has a plan for success. Scorecards inform people how they as groups or individuals contribute to that success.

Leaders can’t forget that they have access to more information about the business than other employees. Team members may feel less secure or certain about their roles and the company’s future in the absence of good communication from their leaders.

People thrive when allowed to do their best knowing what is expected and how they will be evaluated. Having the structure in place to support and guide them in decision making gives them freedom to be creative and exceed what was thought possible.

Are you searching for a software solution that will transform your business?

Or maybe your company is just one great hire from kicking it into another gear.

Perhaps you are on the verge of implementing a new program rally your team.

You are hoping for a silver bullet.

The harsh reality is that no program, software solution, or employee is the silver bullet you seek.  It could be a component for creating success or moving to the next level but it is only one component. 

Success – no matter how you define it – will be a product of your hard work.  As the leader, no one is going to understand your business or work as hard on it as you do. 

You must channel your energy and vision into building success.  To do so requires a plan, determination, and accountability.  Ask yourself hard questions, be willing to make agonizing decisions, and recruit people you trust to walk the journey with you and hold you accountable. 

Start with a vision.  Create a plan.  Measure your progress.  Be held accountable.  Be ruthless in making tough decisions for the right reasons.  Treat those who have joined your journey well. 

You can’t do it alone.  Make sure to ask for help in the areas where you are not strong. 

It’s a safe bet that if you do a quick internet search on business priorities that increasing topline revenue, improving sales performance, and increasing company value will show up in the top results.  Growth matters.

To misquote Gordon Gekko:  growth is good.

Growth tells us you are meeting a need in the market and customers see value in what you do. Growth gives your team more opportunities and expands your horizons. Investors are happy. If you ever watch ABC’s Shark Tank, you know that history and forecasts of growth are major areas of concern.

But it’s not all rosy. You must be prepared for growth and have realistic expectations.

Growing your company may require capital or decreased profitability while you invest in the future.

Your team may need to find newer, better ways to accomplish their tasks to be more efficient and maintain profitability. What got you here may not support you at the next level.

The company may outgrow the capacity and capabilities of its employees. This is especially true of leaders as the company moves from an idea to a company to a professionally-managed firm.

Strong leaders can navigate these obstacles by taking a long-term approach and making tough decisions at the right time.  You must be prepared to protect the business.

However, there are two challenges of growth that can be devastating if you aren’t intentional about protecting them:  maintaining culture and customer satisfaction.

Customer satisfaction is obvious. You won’t stay in business if your level of service drops. Customers have other choices.  Can you maintain your current level of satisfaction while adding more customers?

Culture, however, is easy to ignore if you aren’t intentional. Rapid growth may mean rapid expansion of your team. Hiring strategies must include finding new team members who embrace your values.  Leaders must work harder to model, foster, and communicate values as the team gets larger.  “Culture eats strategy.”

Growth is vital, but exceeding your ability to absorb growth is dangerous.

These may be the two most important – and least-asked – questions.  “Why?” makes you think about purpose.  “Why not?” opens you up to new possibilities.

Let’s start with why. The answer to this question identifies the reason behind a decision or an action.   It is purpose.  Motivation.

If you are making sound decision, your why for anything you do is based on your values, your passion, and your goals.  A trifecta of motivation.  The reason for doing something is due to your strong belief that it is right and good to do based on what is important to you, and it helps you reach an objective or milestone.

In business, why has huge implications.  Every action your team performs, every product or service you sell, and every decision you make should move you toward your goals and be in line with your values and purpose.  If not, you are wasting both time and resources.  Can you afford to do something simply because you’ve always done it that way without considering a new approach?  Should you even be doing it at all?

Of course, to answer these questions you must know your purpose, values, and goals.  Not in some vague way but with specificity and clarity.  If you can’t do that, this is your starting point.

Let’s move to why not.  Asking this question forces you to consider new ways of doing things.  It gives you freedom to think of alternatives, to try new methods, to reinvigorate your team, to reach your goals faster.  It helps you stay relevant.  It allows you to dream and try new things.

Why not keeps you from becoming stagnant, stuck in the same place.  Markets, customers, technology, and trends are always changing, and your business must adapt.  You must find new ways to be more efficient and effective.  You must reach new customers.  You must stretch yourself and your team.

Author Louise Penny says, “Life is change.  If you aren’t growing and evolving, you’re standing still, and the rest of the world is surging ahead.”  Asking “why not?” can be scary but it is necessary.

When you do consider new options, your why and your why not must be in alignment and compliment each other.  In other words, your new possibilities should reflect your passion and goals.

I encourage you to take the time to reflect on your why and consider your why not.

We all know what Return on Investments, or Equity, or Assets are but they may not tell the full story.  You need to get all you can from all your resources.  What is your Return on Resources?

Return on Resources???

You started and built your business on an idea, and then added sweat equity and capital to bring it to fruition.  Along the way you added people, provided training, invested in tools and software, began marketing, and possibly many other items.  Collectively, those are your company’s resources.  Why do you have them?  Because you need them to maximize your profits and the value of the business.

That’s where your operations come in.  Operations includes ALL the processes to keep your business running.  It’s not limited to how you deliver your products and services.

The goal of your operations is to extract value from every resource in your organization.

Let that sink in.  You only add people, equipment, processes, or services for one reason: to make more money.  Every employee, every tool, every asset, every decision should be contributing to reaching your goals in some way.  If not, it’s dead weight on your organization or consuming time and money that could be better used elsewhere.

Ask yourself if the value you are receiving from your resources is what you expected.

  • Do you add more people rather than look for ways to be more efficient?
  • Do new hires get up to speed and become productive quickly?
  • Are there products, services, or processes that add little value and should be modified or eliminated?
  • Have tasks, routines, products, or even employees been added slowly over time without a good top-down review to see if they are still needed?

If you aren’t making the most of your resources, let OPG help you maximize your return.

Let me clarify — wrong for YOUR business.

Your strategy should be as unique as you are.  If you can delete just a few key words and your plan is unidentifiable as yours, it may not be the strategy you need.

Strategy doesn’t begin with deciding what steps you will take to meet your goals.  It starts well before that.  It begins with your company DNA and an understanding of why your customers do business with you.  Without those foundational elements, your strategy misses the mark.

Company DNA

The company DNA is the combination of the core purpose or passion – the reason your business exists – and the values inherent in the organization. DNA drive everything in your company and it sets you apart from your competition.

Your position in the marketplace

Your customers choose to do business with you.  What is it that compels them to select you over others in a crowded market?  If you don’t know, there is one sure way to find out – ask them!

Understanding your strengths and weaknesses as well as the opportunities and threats you face help round out your market niche and how you can leverage your unique position.

Armed with the info above, you can better define the products and services you provide with clarity which allows you to sharpen your brand and target your audience.

Now plan your strategy

Your strategy will set the goals you are trying to attain along with the steps you will take to achieve them.  They should leverage your unique purpose, values, and niche.  Every goal and action must be specific nad have owners responsible for driving them.

If your strategy isn’t more than a list of goals, doesn’t capitalize on the elements that make you unique, and and doesn’t leverage your strengths, it isn’t the right strategy for you.