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Archive for April, 2012

12 Seasons April: Create Culture to Create Results!

Tuesday, April 3rd, 2012

For April’s Twelve Seasons, let’s address growing a greater culture in your company to create even greater results.  You already know the link is real: great culture creates great results!

So, here are some thoughts and tools to “inculturate” your company with behaviors and beliefs that we have seen work in bringing more top-line, more bottom-line, happier employees creating happier customers, and better cash flow and balance sheet health.

First, try adopting Ron Fleisher’s remarkable value system…three simple values for you a your people to embrace.  They are “Customer is our First Focus Always” and then “Revenues minus Costs and Expenses is Profit” and it’s a VALUE here because without it, there is no company, no customer, no product, no nothing!  And then third: “Over-Deliver” which means promise what they say and they want AND what you know they really need, then Over-Deliver every time.  This approach is simple to instill, and it really works!

Next, add some of the tools we continually talk about in the “CEO Tools” book, namely tools about Walking the Four Corners “W4C” and Communication tools, Recognition tools, Celebration tools and events.  Many easily-implemented tools in these areas are laid out in the “CEO Tools” book which most of you have.  They are also available in the many blogs at www.ceotools.com/blog and on the website.

Another thought on improving your culture: Greg Bustin, a top Vistage/TEC speaker/chair focuses on this area in a unique way in his recent blog and email, which identifies the “culture crashers” in your company; these are those folks who destroy culture and whom you can re-direct.  See his insightful piece at the following URL: http://www.bustin.com/_blog/Greg_Bustin_Executive_Leadership_Blog

Finally, it is my immense pleasure and honor to work with some of the very best cultures embodied by clients that I now work with:  these include Phillips Corporation headquartered in Hanover Maryland, Triton Management Group headquartered in Montgomery Alabama and Hotze Entities in Katy Texas.  These are just a few businesses which anyone would be proud to be affiliated with in any way…there are many, many more!

Please set aside some time in the coming few weeks to consider your culture.  What is it now, how might it be improved, and what is your plan with your senior management team to inculturate your company into greater performance and results?  You will be surprised how huge the positive impact will be on your profitability and cash flow.  Best wishes for creating your championship culture, Kraig

 

“12 Seasons” Mar 2012 — Tracking Tools to Galvanize Success

Sunday, April 1st, 2012

March 2012 Twelve Seasons: this month our focus is on great tracking tools and techniques for turbo-charging your profit, cash, customers, and operating performance…practical, easily-implemented, results-producing tools to boost your business now.

Here’s how:  build your own CUSTOMIZED dashboards after looking at our dashboards on the www.ceotools.com website under “New Tools Catalog.”  Suggest you look at the “Measure Up” dashboard as a model where we display the flow of key charts left-to-right on the dashboard.  Each row is designed to take the most important “driver” that makes your target key indicator happen, followed by the most important “key factor” that makes your key indicator successful, followed by the thing most of us usually measure, namely the “result.”  You get the most visibility and manage-ability of your desired result by designing and seeing your flow left-to-right like this!

You can easily scan down through New Tools Catalog at www.ceotools.com to see the various dashboards for tracking the main big elements in your business, go ahead and print out the free PDFs and then decide what your best dashboards should be.  Encourage your managers to do the same.  Pretty soon everyone will have their own CUSTOMIZED DASHBOARD that works for them!  Then, by sharing those dashboards with each other, your management teams will help each other get results while also improving their own dashboards over the next few months…this works fantastically well and is a technique I’ve personally used in several businesses with huge success.

One additional thought:  really learn how to read your balance sheet…is it “healthy?”  Do you know what happens when you sell something?  It really gobbles cash through increased inventory and/or receivables in nearly all companies.  Whenever an asset increases (other than cash itself), it almost always uses lots of cash…any time a payable increases it generates cash.  S0…sales growth gobbles cash, paying someone gobbles cash, buying inventory gobbles cash…determine your “right” growth rate and then track and manage all these things in a dashboard.

We’ve added a new helper at www.ceotools.com/blog that will guide you with your charts and dashboards:  just go there and search on “re-scale” for complete instructions on easily re-scaling Excel charts in versions published as 2003, 2007 and 2010.  It turns out that Microsoft in its infinite (non)-wisdom changes the methodology for working with charts pretty dramatically with each new version.

May these ideas encourage every member of your management team to grow your business without running out of cash!  And..tracking it all on dashboards makes it so much more manageable.

Very best as always, Kraig

 

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