Tag Archives: Few

How Do You Maintain a Healthy Work/Life Balance? Three Perspectives

Situation: A CEO finds that even on vacations he is obsessed with what is happening at the office. This keeps him from relaxing even during time off. Moreover, his family notices this and is unhappy that he isn’t spending his vacation time with them. How does he turn this around? How do you maintain a healthy work/life balance?

Advice from the CEOs:

  • If an individual is still working most of the time when on vacation this has a number of negative effects.
    • It makes the vacation even more stressful than normal work. First, a vacation is meant to provide distance and perspective from the workplace, as well as to allow time to relax and recharge. Second, this is time set aside to enjoy being with family and focus on work robs everyone of this. Third, while on vacation, there are fewer resources at one’s disposal so solving problems from afar is more difficult that when in the office.
  • To address these issues, plan on the next vacation to be “fully unplugged.”
    • Designate a “substitute” to act as CEO during this vacation. Assure that this individual has their own “go to” person to work with if they encounter a situation that puts them in over their head. Perhaps this can be a member of the board or another senior officer.
    • Plan the next vacation for two weeks to test the substitute model.
    • An additional benefit is that this can provide assurance that even if an unexpected situation prevents the CEO from being present, there is an assurance that the company can operate without the CEO if necessary. This boosts the value of the company.
  • Remember that success as a CEO is measured partly on the ability to have a fully operational office when the CEO is absent. Build and conduct the role so that the company operates well when the CEO is not there. This is consistent with a healthy growth model and long-terms plans for building a successful company.

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How Do You Diversify Your Customer Base? Four Suggestions

Situation: A CEO is concerned that too much of her company’s business is focused on two few customers. The loss of a single large customer can potentially mean a significant hit to revenue and profitability. How do you diversify your customer base?

Advice from the CEOs:

  • If current cash flow is good, the company should consider purchasing diversity by buying a company.
    • Consider acquiring a supplier that is in good shape, but with lower margins. They will have the infrastructure to run their own operation, and the purchasing company will have the additional profitability to make the combined entity more interesting.
    • Given the company’s existing cash generation potential, there are creative ways to finance such an acquisition.
  • Why is this a good strategy?
    • Purchasing another company can instantly expand the customer base.
    • Diversifying the company opens additional options to build long-term sustainability.
    • A purchase strategy can bring in a ready-made and smoothly running infrastructure in the form of the purchased company.
    • Diversification can boost the value of the combined company on a more diversified business base. It might allow the company to combine low volume, high profit lines with high volume, lower profit lines. There are advantages to each of these business models.
  • Where can such a company be found?
    • Look both inside and outside of the current geographic base.
    • A candidate could be a higher volume but lower profit supplier of one of the company’s current customers that does not compete with the company’s current offering. Alternately, look at companies with more diversified customer bases in a related industry.
  • Look at the niches that the company’s current customers serve.
    • What similar niches exist? Are there acquisition candidates there?
    • Look at the functionality that the company’s products add for its clients. In what other industries would similar functionality be of value?
    • As these questions are asked, look for candidates that have complementary customer sets, customer bases, and geographical reach.

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