What Happens When Steady-Growth Companies Stomp On The Gas Pedal?

by Elisa SpainNo Comments

Opt 3 Sept 14

When steady-growth companies decide to stomp on the gas pedal, especially with new leaders, it is convenient to assume the “old timers” are just fine and will take care of themselves while all else goes to growth. Be wary of unintended consequences…

When a company is young – it is all about growth – and everyone is in the same place. It is all about hunting (in the hunter/farmer view of sales). When a company is in steady growth, there is a mix of hunters & farmers, with an emphasis on farmers.

 

Then when there is a shift to fast growth, frequently with a new leader and/or new ownership with a new approach to governance, the focus shifts back to hunting, as with a start-up.

 

Except, it isn’t a start-up. There still are these established relationships between account managers and their clients. The needs of the tenured account managers and their tenured clients are different from the hunters bringing on new clients. Similarly, long tenured employees in operations, and other support areas, are particularly impacted by the refocus on growth.

 

It is convenient for leaders to assume the “old timers” are just fine and will adapt, while all else goes to growth. Not true. We all want to feel valued and important.

 

So the question for the leadership of any established company on a fast growth path is, “How do you engage, (i.e. win the hearts, not just signatures on legal documents) of high performers and key clients?”

 

And the question for a board of directors is, “What responsibility do you have to steward the growth strategy in a manner that does not result in unintended consequences to the culture?”

What Makes A Successful Business?

by Elisa Spain1 Comment

Opt 6 Sept 7

What makes a successful business? Is it vision; is it strategy, or ??

Geoff Smart and Randy Street, authors of the book Who, make a compelling case for the value of management talent as the #1 determinant of business success. In their interviews of 400 CEOs and business leaders, they found that 52% rated talent as #1, followed by 20% for execution, 17% for strategy and the good news, only 11% for external factors.

Additionally, in the research they did with the University of Chicago in 2007, they found that the CEOs who make money for investors are those that have both high EQ (Lambs) and work hard, are persistent, set high standards and hold people accountable (Cheetahs). And surprisingly to some and somewhat controversially, those that accentuate their Cheetah skills were successful 100% of the time.

So, does this mean that we, as leaders, should abandon vision and strategy altogether, hire great people, set high standards, hold them accountable and we are done?

Not so simple in my experience. What I observe is great people want to work for great companies. And, great companies not only have high standards and hold people accountable, i.e. operational excellence, they also can answer Simon Sinek’s, “Why?”.

So, yes, hire great people, and give them and your customers a reason to want to work for you and do business with you.

 

Elisa K. Spain

 

 

Are You Prepared To Govern In A Changing World?

by Elisa SpainNo Comments

Opt 1 Aug 10

Arguably the most important ingredient is good governance is having a vision and a strategic plan. I often notice that these plans are based primarily on what is within our control. In short, these plans often consider only internal factors, the SW of the traditional SWOT analysis, while ignoring the OT portion or external factors.

And, I find these same companies are excellent at identifying their weakness and occasionally good at identifying their strengths and true competitive advantages.

I have had the privilege to work with several successful companies and I find, despite their success, they enjoy telling me everything they could be doing better. It is only when I hear them talking with customers, or preparing for these customer conversations that I hear their strengths. In the category of “only the paranoid survive” (Andrew Grove), perhaps this focus on what we can do better leads to stellar results. I certainly can’t argue that in these companies, it certainly has.

And.. what I also notice, in the few consistently high performing companies, is they are equally paranoid about their external environment, not just what their competitors are doing but also regulatory changes, environmental changes, technology changes, etc. They consider all factors that present both opportunities and threats to their current strategies.

It is these companies that focus externally that truly innovate and maintain consistent results.  And effective governance requires this external focus. Without it, sustainability is a question. With this in mind, as you begin to consider your plans for 2015, I ask you to consider the following questions:

  • When was the last time I visited a customer just to understand more about their business? Is it time?
  • What changes are happening in my industry – new technology, consolidation, regulation, etc.?
  • What is happening in other industries, perhaps ones more/less mature than mine, that I can learn from?
  • How are the demographics of my customer base changing?
  • How might all of these changes present both opportunities and threats as we plan for the next 3-5 years?

Elisa K. Spain

 

 

Here's To The Crazy Ones…

Here's To The Crazy Ones…

by Elisa SpainNo Comments

Opt 7 Jump

As my regular readers know, I collect quotes, share them here and on my website. Typically I publish one quote a month, but this month you get a bonus quote.

The last few weeks I have been on the theme about leading change. The quote below from Steve Jobs is a wonderful reminder that ideas only come and change only happens, when someone has the courage to disrupt the status quo.

“Here’s to the crazy ones. The misfits. The rebels. The troublemakers. The round pegs in the square holes. The ones who see things differently. They’re not fond of rules. And they have no respect for the status quo. You can quote them, disagree with them, glorify or vilify them. About the only thing you can’t do is ignore them. Because they change things. They push the human race forward. And while some may see them as the crazy ones, we see genius. Because the people who are crazy enough to think they can change the world, are the ones who do.”

Steve Jobs

Here’s to the crazy ones! I hope you are one of them and if you aren’t, that you at least have one of them working for you.

 

Elisa K. Spain

Culture Doesn't Change, But It Can Bend

Culture Doesn't Change, But It Can Bend

by Elisa SpainNo Comments

Opt 1 2014-04-20 Blog

 

It is often said that culture change is the most challenging change one can attempt in an organization. In fact, Edgar Papke, Vistage Speaker and author of True Alignment, says that culture can only change when you change the majority of the people at the same time.

Hmm, does that mean if we aren’t willing to fire 1/2 of our team, we may as well not bother?

I say no. While I agree with Edgar that complete change will only happen with a complete change in players, culture does bend.

It’s hard; it takes a long time and can sometimes (often) be frustrating. Yet, the results can be worth it. Here is an eight step process (synthesized from John Kotter’s landmark book, Leading Change) that can serve as a template toward bending the culture.

  1. Create a Sense of Urgency
  2. Pull Together a Guiding Team – choose a powerful group with leadership skills, credibility, authority and a sense of urgency
  3. Develop a Simply Stated Vision for Change – paint the picture of how the future will be different
  4. Communicate – create a surprising, compelling and visual experience – strive to change feeling, rather than thinking
  5. Empower Others to Act – remove barriers, including people that are barriers
  6. Produce Short Term Wins – find them and celebrate them
  7. Don’t Let Up – press harder and faster after first successes
  8. Institutionalize the New Approaches/Behaviors – continually reinforce

Elisa K. Spain

 

 

 

 

What If Instead, We Gave Feedback?

What If Instead, We Gave Feedback?

by Elisa SpainNo Comments

Opt 3 2014-03-16In my last post, I compared business to dating. Continuing that theme… Another similarity is “absent information, we make stuff up.” In the dating world, if he doesn’t call, we assume all kinds of things. Similarly with a prospect, an employee, a customer, a new connection.

And, most of the time when we don’t like how we perceive something went, we simply walk away. What if instead, we offered feedback?

Several months ago, I met a talented young entrepreneur through a mutual friend. Our mutual friend asked me to consider introducing her to some of my contacts. I am always very careful about making introductions, as I feel a responsibility to both parties. Long story short, I introduced her to a couple of friends and never heard anything more from any of the parties. I like to complete the circle, so I reached out and learned from my new contact that she had met with each of my friends and they were good meetings.

Shortly thereafter, my new contact asked for a second meeting and around that same time, I happened to speak with both of my friends. My friends had a story, similar to each other, but different from what I heard from my contact. Each of my friends came away feeling that my new contact had promised to send them something and never heard from her again.

New friend, only had a first date, while there was a spark, (see last week’s blog), my gut said, “no second date”‘. She didn’t treat my relationships with the same care as I do.

Instead, I did go on the second date, prodded by a friend who encouraged me to. I decided I had a responsibility to give my new friend feedback.

What ensued was a real conversation about the emotional wake we sometimes leave; the importance of focusing on what is important and the importance of perceptions. It was a defining moment for both of us. For me, being open to hearing feedback that was different from my perception; for her taking a pause and focusing on what matters.

She and I have become friends, not in spite of our conversation, but because of it. She has since told me that she has completely changed her approach to building her business, because of our conversation.

The next time something doesn’t go the way you want it to, with someone with whom you see potential, perhaps a new member of your team, someone you recently promoted, or someone you might do business with, would you consider giving feedback, instead of walking away?

Elisa K. Spain

 

Leadership Quote: Be Like Water..

Leadership Quote: Be Like Water..

by Elisa Spain2 Comments

opt 8 Feb 23 blog                This month’s leadership quote:

“Don’t get set into one form, adapt it and build your own, and let it grow, be like water.”

-Bruce Lee

When I read this quote at my Vistage Key Executive meeting this month, we had a lively conversation about “what does it mean to be like water?” Here is what we came up with.

Water is infinitely adaptable, when it encounters a boulder, a rock or a dam, it moves around it. Water takes different forms, sometimes, hard and solid, like ice, sometimes fluid, sometimes cold, sometimes warm, sometimes boiling.

If we as humans can be like water, we will know when to simply move around the boulder and find another path; when to be fluid and when to hold firm; when to accept and when to respond; when to boil and when to be warm. In short, be like water and adapt to what life presents us with.

Elisa K. Spain

The Queen (Or King) Of Denial

The Queen (Or King) Of Denial

by Elisa SpainNo Comments

opt 8 Internet LLD-Queen-of-the-Nile-01001918There is a country music song entitled Cleopatra, Queen of Denial, recorded in 1993 by Pam Tillis. While the lyrics talk about a love relationship gone wrong (are there any country songs that don’t?), the title stayed with me because it reminds me sometimes of what I see in business.

What I observe is that both kings and queens of denial sometimes confuse optimism with denial. For example:

  • “Yes we are losing money and if we get that next deal, we will turn things around for good.”
  • “I know, Joe or Jane employee is not up to the challenge now that our company has grown, but I can make it work anyway.”
  • “We have always done it this way, if we continue to do things this same way, things will change.”
  • “Our business has grown about 4% YOY the last 10 years and this year, we will grow 20%, without any new capital.”
  • “I know the industry has matured, and prices have fallen as a result, but if we keep offering customized services, we will be able to command a higher price.”

I am sure you can think of others. And, my further observation is that denial is a powerful drug. As with most other drugs, the user won’t stop using until he or she is ready. No one can tell us we are in denial, we must see it for ourselves. One benefit Vistage members have is their chair and their fellow members will keep holding up that mirror until one day, we do.

 

Elisa K. Spain

 

 

Strategic Lessons From David & Goliath For 2014 Planning

Strategic Lessons From David & Goliath For 2014 Planning

by Elisa SpainNo Comments

Option 2 D and GAs you put the final touches on your business plans for 2014, or for that matter, your personal plans, I suggest a read or a listen to Malcolm Gladwell’s Latest Book, David and Goliath: Underdogs, Misfits, and the Art of Battling Giants. 

The book is not about how the weak rise up and triumph over the strong, as you might expect given the title. Rather, the book is about how throughout history, people succeed not in spite of, but because of their disadvantages.

Gladwell begins the book with his own interpretation of the David and Goliath story describing David’s triumph as a function of his going into battle using methods unique to him, (i.e. working in his genius as I am fond of saying), fighting Goliath with a sling shot rather than hand to hand, as was the norm. David takes advantage of his small size and wins because he was innovative and confident.

Throughout the book, Gladwell points to examples of successful inventions and innovations that happened because entrepreneurs who, like David, were perceived as disadvantaged, used their disadvantage to win.

So, as you think about how you might win against the Goliaths in your industry, I encourage you to consider the following questions:

  • What do you perceive as your competitive disadvantages?
  • How might you turn these disadvantages into true competitive advantages?

Here is a 15 minute Ted Talk from Gladwell to inspire your thinking.

 

 

Elisa K. Spain

A Tribute To A Great Man, Who Also Was A Good Man

by Elisa Spain1 Comment

Those of you who know me have heard me talk about my Uncle Leon as a model for a life well-lived. He died this past week, at age 95+. I will be attending his funeral on the day this blog publishes. It seemed fitting to write this tribute to him on this day.

Balaji Krishnamurthy, one of my favorite Vistage speakers, talks about L3, Leadership, Leverage and Legacy. For me, Uncle Lee accomplished all three.

He was an entrepreneur who, in his early twenties, founded the nation’s first convention exhibition business, Mannecraft Exhibition Services. In the beginning he worked with department stores to “exhibit” their store windows. Soon thereafter Mannecraft was setting up conventions across the country. When the company was acquired by a public company in the early 80’s, he agreed to retire at age 65.

Retirement for Leon was investing in young entrepreneurs, providing financing and wisdom to grow their companies. He worked on-site, hands on, with these companies. At the same time, he was fully engaged with his philanthropic efforts.

He was a leader in the Miami Beach chamber of commerce and Kiwanis and was recognized multiple times by both organizations as “Man of the Year”. When it was time to renovate the Miami Beach Convention Center, Leon led the multi-year project – pro-bono.

Leon always said he had only one regret, that he was not able to attend college. His parents could only afford to send one of their three children and his older brother, because he was older, got the opportunity. So… he started a scholarship fund to sponsor young people wanting a college education without the funds to go.

As a child, Uncle Lee was always on my side; and as an adult he has been the person I most want to emulate. While he was always there for advice if I asked, what I learned from him was more from what he did, than from what he said.

A few years ago my cousin and I were talking about Uncle Lee and she asked me, “what do you think you have learned from him?” As I reflected on her question, I created this list of seven “Leonism’s”. He made each of these seem easy and yet for me they are aspirational words.

7. Accept what you cannot do and do all of what you can.

6. Stay active, physically and mentally.

5. Make new friends all the time.

4. Move on – learn from mistakes.

3. Live in the present.

2. Forgive – yourself & other.

And, #1, Make the people around you feel special.

Uncle Lee was loved and admired by his family and everyone who was fortunate enough to know him. When he turned 95, over 100 people, of all ages, showed up to celebrate the man who, as my aunt said so well, “was someone people didn’t just want to know, they wanted to be”.

I will miss him and his legacy will continue to inspire.

Elisa K. Spain