Tag Archives: Professional

How Do You Focus Your Team? Six Points

Situation: Several CEOs asked how others have had success improving company performance and is interested in how they focused their teams. How do you focus your team?

Advice from the CEOs:

  • Important tasks for any company are to validate the value proposition, technology, target customer, and the rate of market expansion, and minimize risk and liability. This should be a regular company exercise – not a one-time event.
  • Assuming that a company has goals and people who can align with and achieve them, a company needs a vision – the broader strategic picture of where they are going. Often some of the best ideas come from line staff who are enabled by their company’s culture.
  • It is critical that companies are able to quickly identify problems and have systems in place to drive problem resolution. The minigame technique is very useful in these cases.
  • Companies should have a plan for transitioning employees into new roles as the company grows. The key is clear identification of the individual’s role within the company, and how that role compliments achievement of company objectives.
  • If a company wants to grow sales from, say, $20 to $60 million, it will need a professional sales leader. In addition, growth may require a change in company culture from engineering and development centric to sales centric.
  • A significant challenge is determining how to define corporate success. Much depends upon the questions asked. The Great Game of Business by Jack Stack provides guidelines and tools for assessing options. Anyone starting or growing a business should look at this book.

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How Do You Quantify Niche Market Potential? Five Suggestions

Situation: A CEO’s company focuses on a specialized niche market. One of his challenges is that there is little public or chamber of commerce information available on the size and characteristics of their market. How do you quantify niche market potential?

Advice from the CEOs:

  • Define the product / service very specifically. To narrow and refine estimates of market size look for the low hanging fruit.
    • What are the high growth segments of the target market?
    • What are the high growth industries of the target market?
  • To determine whether the market opportunity is $100M or $500M:
    • Define the company’s market more clearly – particularly the initial beachhead market where there is the potential to gain the most traction.
    • Recognize that there may be two markets: a high end market – relatively low gross sales dollars but high margins, and a low end mass market – relatively high gross sales but low margins.
  • Contact the originators of available market data to get their assumptions, comparative data and any other findings that may not be published but are beneficial.
  • Work closely with customers to build category / industry revenue estimates.
    • Segment the most active customers and increase the company’s share of their purchases.
    • Develop web site transaction capabilities to offer the company’s line as an adjunct to customers’ web sales.
    • Establish a Customer Council or Round Table to better understand the market dynamics and to differentiate the company within the market.
  • Sell the product and services’ features and benefits to the C-level, not just to engineers.
    • Sell to the CEO / CFO focusing on increasing shareholder wealth.
    • Determine a return rate for conversion to the company’s technology.
    • Reach out to professional segments that will naturally see value in the company’s process.
    • Seek an exclusive relationship with an industry leader to quickly launch new products.

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How Do You Navigate Communication Style Differences? Four Points

Situation: A CEO seeks advice on how other CEOs work with employees who have significantly different styles of communication. He suspects that this is a source of conflict between employees and wants to reduce that conflict. How do you encourage employees to be more open and receptive to other employees? How do you navigate communication style differences?

Advice from the CEOs:

  • Conduct regular personnel reviews. In reviews work with the individual to develop personal growth plans in addition to professional development objectives.
    • It may be necessary to create enough stress in an interview situation to prompt the real personality to show.
    • Recognize that sometimes an employee who meets professional goals can still be a poor fit for the team. This can impact other, productive team members. Don’t be afraid to fire a bad hire.
  • How much can you expect to mold another person’s communication style?
    • There must be personal motivation to change – the impetus must come from within.
    • To prompt the conversation acknowledge that something isn’t working – or isn’t as effective as expected.
    • Communicate to the individual that the consequences of not changing are potentially worse than the effort to change.
  • Breed adaptive communication skills throughout the organization.
    • Use an assessment tool to start the conversation and align tasks.
    • In dealing with an individual who is confrontational, probe to determine what is motivating the individual’s question or position on an issue. Does the individual genuinely need additional information or are they using a wall of questions as a roadblock to moving on?
    • Work with the individual to organize their answers or input into a plan.
  • Communicate values and goals as they pertain to individual contribution and appreciate the impact of different departments’ actions on each other.
    • Be flexible – some people need more definition and reinforcement than others.
    • Understand that changes and transitions in the company’s focus can shift roles.
    • Review each individual’s role periodically to insure that it fits the company vision. This can increase the individual’s understanding of how they are contributing to moving the company forward.

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How Do You Raise the Bar on Personal Performance? Five Suggestions

Situation: A CEO is constantly striving to increase her skills, both personal and professional. She has sought and participated in a number of workshops to facilitate ongoing improvement. Some have been helpful but others less so. What have others done to sharpen their professional skills? What about their personal skills – the human side? How do you raise the bar on personal performance?

Advice from the CEOs:

  • Focus on improving and sharpening your strengths, not on overcoming or improving areas that are not so strong. Look for ways that existing strengths complement each other and build on these combinations. This will naturally yield two benefits: raising performance and bringing greater satisfaction.
  • Create personal objectives that will help to sharpen existing strengths.
  • Conversely, develop workarounds for those areas which are not as strong. Look for talents among the others within the company that address the areas which are not as strong. Have them assist in work pertaining to these areas. They will enjoy this work because it complements their strengths, and you and the company will gain the desired results.
  • Take time to reflect and to recharge the batteries. Check current objectives and assure that these objectives compliment your long-term goals. Assure that you are focusing on the right priorities for YOU.
  • Find a mentor – in or outside of your industry. This will be an individual with experience who can provide you with guidance and clarity as you address both day-to-day and long-term challenges.

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How Do You Boost Intensity and Accountability? Five Solutions

Situation: A CEO is concerned about the intensity and accountability of her team. An employee stock ownership program is in place, and employees are rewarded with bonuses for meeting or exceeding objectives. HR reports that there is a lack of decision-making; employees just sit and talk instead of moving forward. How do you boost intensity and accountability?

Advice from the CEOs:

  • Does the current bonus structure include revenue growth? If revenue growth is not part of the incentive program, then this won’t be the focus.
  • What happens when the CEO is away?
    • Assure that the #2 who’s in charge has the same sense of urgency as the CEO and has the confidence to make decisions.
  • The company is at the point where it needs seasoned professionals to run key operations and functions.
    • Ideally this would be an internal promotion, but if there is no internal candidate look to hire from the outside. Hire two new managers – for different teams. Watch how they do with each of their teams to determine whether one can run the whole outfit.
    • This can ignite other employees – those who will catch on to what the new manager is doing and will now get the message.
  • Another CEO empowered people and explained how it worked.
    • They have had to swallow some poor decisions but have learned that they can’t come down on those who make mistakes – it discourages them from taking the risks needed to make decisions.
    • They’ve organized strategic teams to develop the empowerment program with minimal input from top staff. Teams are required have to report on their results 2x week – no exceptions.
    • The CEO hired two key hires who are hard hitting with deep resumes and experience – individuals who have shaken things up.
    • The new managers started in a sheltered situation where they could learn the organization and the people. This was done before they were put in their eventual positions.
  • What are the potential downsides to making this kind of change?:
    • Some sparks will fly.
    • Some will get upset.
    • Be patient with this process – let it happen.

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What are the Options for Your Next Phase? Six Suggestions

Situation: It’s a new year, and a CEO is thinking through options for the coming year and beyond. She has decided to leave her company and establish a new role and career for herself. Immediate concerns are funding the transition and entry into a new career. What are the options for your next phase?

Advice from the CEOs:

  • The area that can be built most quickly to provide income is a consulting practice based on the experience developed as a CEO and as a specialist leveraging past experience. Building a new practice is a big commitment. Make this the initial focus and get a few gigs to get the ball rolling. The company is an early option, as well as some of their key customers. These relationships are already in place.
  • On the academic side, investigate Executive Education programs in Business Schools. Here the clientele is different from normal undergraduate and postgraduate education – actively working managers and executives. For this audience the combination of experience as a CEO and academic credentials is advantageous. For this audience, a lack of credentialed teaching experience is largely counterbalanced by the weight of professional experience.
  • The Professor / Consultant track looks best if established as a 5-year plan.
  • While getting established in a new role there will be an initial challenge managing the time demands of teaching, research and developing a consulting practice. Think of this as managing the multiple functions of a company. It will be important to establish early priorities to accomplish the desired plan.
  • A professorship does not necessarily tie financially to current goals but can be an important strategic adjunct to consulting efforts. In a certain sense, teaching will have to be its own reward.
  • To the extent possible and depending upon how the board responds to the decision to leave the company negotiate the best possible severance package. This can tie into some of the suggestions, above.

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How Do You Shift the Sales Mix? Five Suggestions

Situation: The CEO of a professional services company wants to shift the focus of the company from emphasis on service of existing customers to new customer development. Historically they have counted on repeat sales, but these have lagged. The CEO wants to develop new customers to build current and future revenue. This is a mentality shift. How do you shift the sales mix?

Advice from the CEOs:

  • The objective is to move the current customer to new customer mix from 80/20 toward 40/60.
    • As an example, the CEO has shifted her focus day to day management to long-term planning and strategy over the last two years.
    • Now it’s time to motivate others to make a similar shift in customer development.
  • Make the shift to sales – to rain-maker – a requirement for Partner Track. Let those who want to pursue Partner Track know that this is a key part of their qualification for Partner.
  • Make cash flow analysis an integral part of new project proposals and current project tracking. Have project managers devise their project analyses to show return but review these to assure that their analyses are accurate. Require them to sell their analyses to the Partners. This will help them to see the value of correctly bidding new projects up-front.
  • Ask them – what do you want to be doing in 10 years? How will you be contributing to the goals of the firm? What are you doing to get there? Communicate the critical metrics that will be evaluated: sales, new account development, profitable bids and project cost control. Focus cost control on keeping options presented under control and minimizing rework.
  • Reserve Partner Track for those who can produce both sales and effective delivery of services. In employee reviews make this distinction clear.

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How Do You Develop the Next Level of Leadership? Two Points

Situation: A CEO finds that it is time to develop the next level of management and leadership to support the company’s planned growth. She has received input from several sources but is curious as to how other CEOs have taken their staff to the next level. How do you develop the next level of leadership?

Advice from the CEOs:

  • Consider as an example how a law firm typically grooms and grows new partners:
    • Give them an area of responsibility.
    • Provide targets (expectations and metrics) and give them the opportunity to produce results.
    • Put the highest performers on track for promotion.
    • As is the case in a law firm, the candidates for management and leadership for will be a combination of rainmakers and the best talent in critical performance areas.
  • What should be budgeted for professional growth and development?
    • One example – provide up to 10% of hours per week for an individual who shows a true desire to improve their skills. Watch how the individual performs, but make sure that there is a measurable return before continuing this beyond a certain point.
    • Another alternative: let the candidate decide by matching 50% of what they are willing to spend on training and education. Require proof of completion of the course and likely an acceptable grade average if the training is academic and reimburse after the fact.
    • Ask the candidate to demonstrate the ROI for the training for which was reimbursed 50% before agreeing to continue to support additional education. Let them develop the calculation but insist on final review and approval of their analysis before continuing to fund additional education.

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How Do You Maintain Your Culture as You Grow? Five Points

Situation: A company has been growing well and has developed a solid culture. Currently a key individual has decided to leave the company and has said that he is uncomfortable with the company’s culture and values and feels that he could make more money elsewhere. This has caused the CEO to question how he maintains the company’s culture. How do you maintain your culture as you grow?

Advice from the CEOs:

  • The individual who is leaving was the wrong person for the company. The company is lucky that he is leaving.
    • As this individual departs the company, conduct an exit interview and listen closely to what he has to say.
  • Develop a simple statement of the company’s culture. This is not the current vision and mission but is a statement that represents the core values to be maintained by the company and staff.
    • This will help to identify and evaluate new people as they are brought onboard.
    • It will also help to guide the company as it faces both new opportunities and the numerous business choices that will be encountered in managing both current business and future growth.
    • As an example, J&J’s “Credo” starts: “We believe our first responsibility is to the doctors, nurses and patients, to mothers and fathers and all others who use our products and services. In meeting their needs everything we do must be of high quality.”
    • This statement of values guides everything that J&J does and saved them as they formulated their response to the Tylenol scare.
  • The team leads are the key to cultural fit. They determine whether the culture of their teams is consistent with the culture of the company.
  • Look at the culture of subgroups within the company. These have a huge impact and represent areas where the company truly excels.
    • Microsoft excels at managing software development but does not have the skill set to manage networks – nor do they care to develop this. Focus on what the company’s leadership are staff are best at doing.
  • From what has been said, it appears that the company was founded:
    • To create a professional work environment – to the founder’s standards; and
    • To be of uncommon value to the company’s clients.
    • If leadership conforms to these two standards, they will guide decisions about new opportunities and directions. Either a particular choice fits these standards, or it does not.

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How Do You Create a Good Lead Generation Campaign? Five Thoughts

Situation: A CEO wants to increase the company’s customer base. What have others done to generate leads in order to expand their customer base. What techniques have worked best? How do you create an effective lead generation campaign?

Advice from the CEOs:

  • One CEO who targets large customers used outside telesales at first but found them to be ineffective. They have since gone to an inside team. There is a learning phase, but with experience this can be an effective solution.
  • Another company uses an inside telesales team. This started with one individual and has become a team. Because this provides more control, one can hire for quality. This is often older callers who sound very professional on the telephone. It also provides the opportunity to tweak the telephone script for special promotions or circumstances.
    • For this company the number of calls per lead and closed account are high – up to 5% for leads and 1% for closed accounts. With a disciplined team and proper incentives, this is very doable.
  • Investigate the availability of local business lists such as Craig’s List or Rich’s Business Lists These lists are searchable by industry and business parameters.
  • Consider small professional conferences that attract target personnel of your key potential prospects. These are great networking and lead generation opportunities.
  • Make sure that there is a good link between the telemarketing and sales teams. This includes tracking, credit and rewards for landing accounts, and similar incentives.

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