The Business Transition Blog

71% of employees don’t care!April 28, 2012

Here are some very interesting and informative stats about employee engagement and what incentives work best to get them engaged.  Go Here

Some of us are aware of this phenomenon so you might think, so what? What if we were to publish a title: 71% of Business Owners Don’t Care!

That would get your attention because you haven’t heard anything like that before. It’s goes against all reason and common sense. Owners do care!

So what if you could get employees to begin to think like owners? The stats would be significantly different wouldn’t they?

Here is one practical and profitable solution to this problem. Check out Ownership Thinking. It’s a different mindset.

It’s difficult to sell your business if you have disengaged employees. Better to change that now before you look for a buyer.

How To Hire Great People For Your TeamFebruary 26, 2012

(As opposed to Turkeys)

The task of locating and hiring a great employee can be both difficult and stressful; but, it just got whole lot easier, less time-consuming and less expensive. Technology isn’t always a better solution, especially for dealing with the people issues; however, there’s a new, impressive online tool which I think is well worth considering – especially if you are in a small or medium-sized business.

The Applicant Processing System (APS) enables companies to have 24/7 online recruiting that will assure more applications for each job posting and provide a ranking of those applicants based on your criteria.

Here’s how it works. Suppose you are looking for a new salesperson. You would go through these steps:

  1. Establish goals and objectives for the role. Create a job description.
  2. Decide what skills are required. Are you looking for a ‘hunter’ or a ‘farmer’? An inside or outside salesperson?
  3. Identify questions to narrow the focus. For example, if the job absolutely requires travel, ask, “Are you available for overnight travel?” An applicant who responds “no” will be screened out and you never see their résumé; whereas in the past if you received 200 résumés you needed to read every single one, because your best candidate might be #195 in the pile.
  4. The APS taps into many Internet job boards to find candidates. It pulls in all suitable résumés, and invites candidates to your website where they enter the APS process.
  5. You receive and read only the résumés of those individuals who most closely match your job description and important criteria.
  6. Do a quick telephone interview with those who might fit your job and decide if you want to invite them to the next stage of the process, which is to complete another on-line exercise – the Prevue Assessment.
  7. The Prevue goes beyond basic questions that the candidate could ‘fool’ and reveals a more accurate picture of their mental skills, interests and personality traits. The accuracy and validation are excellent – which means that what you see is what you get. Candidates are measured on a scale of 1-10, on four mental abilities, three interests and twelve personality traits. These are then automatically compared to the “benchmark” or template you’ve created to establish the best fit for the job.
  8. Invite the top candidates to interview. The Prevue provides interview questions to further enhance your understanding of the individual based on your benchmark and its comparison to the candidate.
  9. Once you’ve chosen the successful candidate and offered him/her a position you can generate another report that will help in coaching and training.

It’s a dream come true for the hiring manager. It’s a proven, automated process that:

  • increases your candidate pool,
  • screens out inappropriate applicants,
  • ranks the rest in order of best fit,
  • provides helpful questions, and,
  • assures a better success rate of hiring the best fit for your job.

It’s fast. It’s accurate. It’s inexpensive. It saves you time and money.

For more details, contact me here.

Hiring Your SuccessorFebruary 20, 2012

Over the past few months, we have watched as some very big name businesses have passed the reins of leadership to a successor. Only time will tell if it will work; but, there are lessons to be learned from observing Apple, RIM and Canadian Pacific attempt to preserve or improve market share by appointing a new CEO.

The Apple transition is a good news story. It was clear that Apple needed a succession plan to backstop the company in the face of Steve Jobs’ uncertain health. Tim Cook, who was hired in 1998, was groomed as an internal successor. His responsibilities increased progressively until he assumed leadership last year. The company had enough time and warning to make the changes necessary for a relatively smooth transition. So far, it seems to be working as Apple stock has continued to rise.

On the other hand, the RIM co-CEOs Lazaridis and Balsillie, both age 50, have apparently made the transition unwillingly, allowing their stock to devalue by 75% before giving in to pressure to appoint a new CEO. Thorsten Heins, a relative unknown prior to the announcement of his promotion has the challenging task of stopping the bleeding, and trying to bring the company back to its former value and beyond. It is a big hill to climb.

In both cases, the company had the time, money and, I expect, expert advice about how to implement a succession plan for the founders. But whether you transition willingly or “kicking and screaming”, the legacy you leave will be influenced by your ability to hire a successor early enough to make the transition as seamless as possible.

A third example of transitioning to a successor is unfolding at Canadian Pacific, where a major shareholder, Bill Ackman is trying to force out the current CEO Fred Green in order to replace him with former Canadian National CEO, Hunter Harrison. In this case Green is not pleasing his shareholders and may get axed to be replaced by an external candidate.

It would appear that Apple got it right. They planned for it, had time to test the candidate in real life before officially passing the baton, and they got the founder’s blessing.

For entrepreneurial companies built largely on the personality and success of the founder, transition can be difficult. Individuals need to swallow their pride and accept that someone else may do as well or better than they can at this stage. Of course, it can be expensive and time consuming to hire and groom a successor.

But what’s the alternative?

Business Transition & The BeatlesFebruary 14, 2012

It’s hard to let go. And if we needed more evidence of that, my experience last night highlighted it, again.

It was a trip down memory lane, Penny Lane and Abbey Road. Yes, another tribute to the Fab Four, the Beatles who have left a permanent dent in the collective minds of the boomer generation.

With a full symphony orchestra in the background, the tribute band looked and sounded very much like the originals. They played tunes from the sixties and seventies – some great rock and roll.

And as I looked around the hall, about 2,000 grey and balding heads bobbed to the music that recalled a younger, more exciting age when they would have been happy in the back seat of any car with their teenage lover.

It was nostalgic. It was a little sad. And we loved it. No current musicians can hold a candle to the Beatles.

If it’s that hard to transition away from music that’s 40 years old, it does give us some insight into how difficult it can be to transition away from the business you gave birth to.

Learning Organizations Make Succession EasierFebruary 11, 2012

Organizations learn only through individuals who learn. Individual learning does not guarantee organizational learning. But without it no organizational learning occurs.[1]

In 1990, Peter Senge published The Fifth Discipline, a seminal work that outlined the critical importance of developing learning organizations. Senge maintained that organizations which don’t learn, adapt and grow will fail. This prediction is even more relevant today.

But organizations don’t learn. People do. It is individuals who seek out new ideas, information and insights and apply them to their organizations in order to improve. To create a vibrant learning organization, we must first employ individuals who love to learn.

If you’re thinking of transitioning or selling your business, there are powerful reasons why this would be important to you now:

  • It adds value to your business.
  • It makes it easier to bring about a planned transition.
  • It increases your chance of successfully enabling your employees to take on more responsibility, freeing up your time to do more of the things that you’d rather be doing.

Consider the challenges you would face if you employed:

  • An IT manager who resists learning a new operating system.
  • A marketing manager who isn’t interested in social media.
  • A production manager who doesn’t want to learn better leadership skills and how to deal more effectively with employees from different generations or diverse backgrounds.
  • A vice-president who avoids learning about succession planning, strategic planning, process development, or open book management.
  • A HR manager who refrains from learning about new employment laws, hiring practices or assessment tools that would improve employee retention.
  • Any salesperson who refuses to learn about Customer Relationship Management programs or better ways to prospect.

Would you put such employees on the asset or liability side of the ledger? When employees don’t like to learn, they devalue your business. If they succumb to their fears, they sabotage any attempts at succession planning.

What about you? Have you set an example for your employees? Do you invest in business books, courses, seminars, professional development and coaching? Have you offered your employees learning opportunities?

When you look at the companies on the list of “best employers to work for” you’ll notice that one of the traits that makes them attractive is their support of continuous learning. If your people aren’t learning, you don’t have a learning organization and your attempts to transition are destined to fail.

[1]Peter Senge, The Fifth Discipline, 1990: p. 139

Expect To Win Big In 2012December 31, 2011

Accomplishments will never outpace dreams. This has been stated in many different ways. Stephen Covey suggests that everything is created twice; first in someone’s mind, and then in reality. Earl Nightingale said “the pictures you hang on the screen of your mind, is what you will become; no more and no less.” It only makes sense that if we plant corn seeds, we won’t expect to grow oak trees. In the same way, if we plant seeds of mediocrity, we cannot expect to harvest the results of greatness and success that we could have if only we chose to plant a different kind of seed.

If that is so, then why do people have small dreams and expectations? I often find that people in our workshops have a hard time putting items on a dream list. Do they have everything they want? Are they perfectly happy? Not usually. Then why are the corridors of their imagination completely closed with cobwebs and dust?

Perhaps one reason is the admonition, if you don’t expect too much, then you’ll not be disappointed. A recent philosophy promoted by someone on “how to be happy” (published in MacLean’s Magazine) stated that in order to be happy, you should lower your expectations and goals and develop positive, optimistic thinking. This seems to be a contradiction. Perhaps they’re saying that you can be happy by having low expectations and be positive and optimistic that you will reach them. Yet that seems an incredible waste of the talents, potential and opportunity that we are all given.

Research by psychologists (Covington, Spratt and Omelich) has shown that when faced with the potential of risking failure, many people reduce their effort, minimize their expectations and accept failure or mediocrity with relative resignation. It seems that the punishment of real failure and the criticism of their superiors was less motivating than an internal need to maintain the perception that they really had the ability, but didn’t want the end result badly enough to try harder. The study revealed that people who consistently expended high effort and failed, felt more anxiety and shame than those who expended little effort and failed. Those who expended high effort but still failed attributed their failure to a lack of ability. Those who expended little effort could excuse their failure by saying, “I really didn’t want to do well anyway.” In the final analysis, a perceived lack of ability was more painful than a perceived lack of effort.

Salespeople often do this. Rather than go all out to sell a major account, they hold back. They’re late for the meeting or forget their business cards. They have spelling mistakes on the proposal. They may not even make the initial phone call to set up the first appointment. If you pull out all the stops and do your absolute best at getting the account and you fail, in your subconscious mind that failure seems more shameful and painful than if you only put forth a partial effort or none at all. Therefore, the whole concept of being able to get what you want, reach incredible heights, and live your dream life seems to be in direct conflict with this natural human tendency to erect walls to defend your ego.

Isn’t it amazing that our ego is so fragile, our need to protect it so strong that we will give up our most ardent desire, even our dream of a lifetime in order to avoid a bruised ego? Our mind and resources are numbed with anxiety; “If I tried it and failed, what would others think of me?”

We receive mixed messages about how to be a successful member of society. Society tends to look more askance at the individual who “damns the torpedoes, full steam ahead,” than they do at the individual who cautiously tiptoes through life. Yet, we secretly admire the swashbuckler, the maverick or the individualist who goes his/her own way, not caring what others think. In movies, we live vicariously through these strong characters, but we don’t really see ourselves in these roles.

Just think about the things we do to sabotage our success.

  • We expect minimum or mediocre results and set up our life to get what we expect.
  • We choose small dreams and aspirations.
  • We expend minimum effort so we won’t be disappointed.
  • When we are given an almost certain guarantee of success, we choke under pressure, get sick, lose our temper, “forget” to do a critical piece of the process, show up in inappropriate attire or just give up.

There is no question that we have the ability to achieve greater things in the future than we have in the past. We rarely come close to using our total potential. We know we can be more disciplined, more energetic, more sociable, more communicative, more focused, more productive… But how much is enough? At what point do we relax and say, “I’m satisfied”?

How much is “Big”?

Only you can answer that question. When we say you should expect to win big, your definition of big might be to quit your high paying (but stressful and unhealthy) job and become a tour boat operator on Vancouver Island. Big might mean buying out your competition, franchising and expanding your operation into 50 countries around the world. Big might mean choosing to stay home with your children and focusing on one of society’s most important tasks – raising healthy, curious, and confident members of the next generation. I believe the definition of “big” is up to you. It is your choice. It’s a vision of what you believe will enable you to live your life the way it was meant to be lived.

“Winning big” means that you had a dream and the courage to challenge the status quo. You were able to remove the opaque film of conditioning from your eyes, to reach deep down into your guts to decide what you really wanted from life and then mustered the grit and determination to pass your previously set quit-line in order to grasp the life you truly desired

Expect to win big in 2012!

Happy New Year!

4 Financial Strategies For Aging EntrepreneursDecember 16, 2011

Many entrepreneurs are planning to retire on the proceeds of one stock – their own business. However, there is a disconnect in that plan for most business owners. The chances of you finding a buyer for your business are probably only 1 in 5 or less and the chances of getting the amount you want are even slimmer. The reality is, the odds are stacked against you finding someone willing to buy your business.

So we recommend a four-pronged approach to preparing for your retirement or premature demise.

  1. Grow the attractiveness and value of your business so you improve your chances of being the one in five that finds a buyer.
  2. Build the sustainability of the business so it can carry on in your absence and provide a predictable income stream whether or not you are able and willing to go to the office.
  3. Make sure you have enough life insurance to sustain both the business and your family/spouse while they recover from the shock and implications of your premature death.
  4. Pull money out of the business to feed your RRSPs or non-registered investments.

For another perspective on this, go to this Globe and Mail article.

The process of doing points 1 and 2 above so you can afford to 3 and 4 is part of our Business Transition Coach Forum™. If you want to know more, give us a call.

A Free Video Interview and a Christmas OfferDecember 15, 2011

It’s been a very busy fall. The Achievement Centre International annual 3.5 day conference was held in November and we brought many new ideas and programs to our associates. We’ve continued to expand the tools and resources available to them to help their clients grow their businesses. And we were pleased to welcome a number of new people to our growing team.

There will be five senior advisors getting certified to coach/facilitate the Business Transition Coach Forum beginning in January. If you feel you are qualified and interested in leading Forums in your community please contact me for more details.

I was recently interviewed for BizTV and you can see it here.  It’s been edited down to 9 minutes so there’s some very good info in a short time.

There is a growing need for the Forum or one on one coaching as entrepreneurs face the challenge of transitioning or selling their business. If you’d like more information on the forum or you’d just like to find out if we can make a difference in your situation, please get in touch.

With Christmas just around the corner, consider giving someone you love and care about a copy of my book, The Business Transition Crisis. If you know an entrepreneur who should be preparing themselves and their business for transition, it’s a great gift and one they’ll thank you for if they take advantage of the ideas that are there. Better yet, if you are an advisor and would like to give one to a number of your clients, call me for special rates on bulk sales.

Enjoy the holidays and be safe as you share the season with friends and family. Best wishes,

Wayne

Use Leverage to Increase the Value of Your BusinessSeptember 6, 2011

Do More With Less

Throughout history, humans have used leverage to ease their burdens. Applying the physics of leverage, an average person can move loads many times his own weight, thus in ancient times the Pyramids, Stonehenge, and the aqueducts were built using huge stones. Leverage enables you to achieve more with less effort.

Business owners can achieve more with less effort if they build a business that continues to grow and prosper even if they aren’t there doing the work. This becomes even more critical as you plan for the transition of your business.

Let’s suppose you’d like to retire in three years, and that you’d like to sell your business for 50% more than its current value. With this concrete goal in mind, what is the best use of your time over the next three years? How can you use the principle of leverage to your advantage?

  • Reduce or eliminate all activities that don’t contribute to the achievement of your goal. The 80-20 rule suggests that 20% of your current activities produce 80% of the important results. Conversely, 80% of your activities produce only 20% of your preferred results. Therefore you should identify the critical 20%, do more of those and fewer or none of the other activities that have a low payoff.
  • Work ON the business not IN the business. Leverage the skills and abilities of your employees.
  1. Slowly but surely delegate everything and teach your people to do what you used to do. Coach more, do less.
  2. Dedicate someone to document all the processes that make your company successful. Use a software tool like Camtasia to record all the keystrokes required for any complex processes that can be captured on the computer.
  • Join a group of like-minded entrepreneurs who are wrestling with the same challenges. Change is hard, but you can learn from and support each other.
  • Get a coach. A business transition coach will keep you focused on what’s important, leveraging your time and unique talents.
  • Spend less time at the office. Play more golf. Go fishing.

By focusing on high payoff activities, developing your employees, and learning how to implement necessary changes, you can leverage your business’s value and prepare for a positive transition.

In the process, you might find you can run your business from the cottage and don’t have to sell it. That’s what happened to me.

A Week of Huge Transitions – Including a New BabyAugust 26, 2011

What a week! I’ve been anticipating and talking about the pending transitions that will take place and begin a wave of change but this week has been whopper!!

  • In world news, Libya is one step closer to overthrowing Gadaffi who is now in hiding. But transition is imminent and one wonders if the rebels are prepared for the chaos that will ensue in rebuilding their country.
  • Steve Jobs has stepped down from his position as CEO of Apple and investors,  employees and raving fans are rightfully concerned about whether or not the company can continue to flourish during the transition to a new stage of business without Jobs.
  • The Japanese prime minister has stepped down amid criticism of the way he has mishandled the after-effects of the tsunami and nuclear catastrophe.
  • Here in Canada, the untimely death of Jack Layton, leader of the opposition has left a huge gap in the leadership of Canada, his party and his family. It has also accentuated the differences between his style of leadership and those that remain. He was much loved and respected even by those who didn’t vote NDP and is being held up as a model to which other politicians should aspire.
  • On a more personal note, Dawna and I have become grandparents for the first time. During a roller-coaster week of joy mixed with the unfamiliar emotions of deep concern and worry, Harriet Anne Maki came into the world 10 weeks early at only 2 pounds, 7 ounces. At the end of her first week in this chaotic world, she is doing well and we are optimistic that she’s going to grow up to be a wonderful little girl.

Each of these events will trigger huge changes in the lives of those who are intimately or even indirectly connected to them. While we can’t anticipate and prepare for every possibility, there are two major changes we can predict with absolute accuracy. Our business will be sold and we will die – and not necessarily in that order.

If you own a business, at some point in the future, your company will go through a transition in which you are no longer part of it. Like Steve Jobs, you may choose to step down, you may be forced out like Japan’s prime minister, you might die at the peak of your game like Mr. Layton or if you are a really bad manager, you might be hunted down by rebels. Ok, probably not the latter, but I’ve known some owners who are not very well liked by their employees.

Or, you might decide it’s time to leave the old behind and start something completely fresh, like being a grandparent. Or maybe a brand new business that is less demanding, less stressful and less risky. Maybe it’s time to let go of the past and look to the future.

Wouldn’t it make sense to do that before you’re forced to make a change? You can transition gracefully or go kicking and screaming. Your choice. You might want to make it before someone makes it for you.

Introducing Harriet Anne Maki

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