Intentionally growing your company - The changing role of the CEO: Processes and Systems:

Recently, I began teaser introductions to the following five topics.  I believe that each topic is a key issue for growing your company from 15 to 50 and then to 150 people or more.  So, here is my take on that Holy Grail, on what companies and my clients need to focus:

Know Thy Self  

 Look at Your People 

Culture

Processes/Systems

Business Model

Today, let’s look at #4, Processes/Systems.  I have found three issues recurring so often they feel like rights of passage. 

My experience with companies at the 15 and 50 stage is that systematic anything is pretty rare.  These companies have either started out with a founder who has an exceptional  ability to sell or produce product or create excitement and service relationships (occasionally all three), or there are long standing employees who know the business as it is and keep a great deal in their heads. 

One of the issues that looms largest for a company wanting to grow to the 50 employee level is translating company knowledge to others and making this knowledge replicable (meaning that it can be provided to others without the founder or key employee).  The hurdles to move through this no man’s land are usually: Culture, perceived value of processes/systems and some discipline. 

Culture of smaller companies is usually one of heroics, someone or some few who do things in a n exceptional manner.  Perceived value is either personal or cultural (“I don’t need it, why can’t they just do it too”).  Discipline raises its ugly head when priorities are made.  Getting started on creating replicable processes and systems usually loses out to “We have business that we have to attend to.”

For 50 employee companies, the two issues that most often come up is failing to develop processes that are appropriate for the size and focus of the existing/near term business and second is the issue of making sure that processes, and the people who use them, actually work/serve the goals everyone has for the business. 

At 150 employees companies often come up against issues of complexity vs. the fit of the processes/systems.  All too often there is a disconnect between the people being asked to follow the process and who is developing the process.  Investing time and resources on acceptance, use and implementation of the process/system is all to often overlooked or minimalized. 

So what are the issues you have had to address in adopting/creating and implementing  processes and developing systems?

Intentionally growing your company - The changing role of the CEO: CULTURE

Recently, I began teaser introductions to the following five topics.  I believe that each topic is a key issue for growing your company from 15 to 50 and then to 150 people or more.  So, here is my take on that Holy Grail, on what companies and my clients need to focus:

 Know Thy Self  

 Look at Your People 

 Culture

Processes/Systems

Business Model

Today, we are touching (and I do mean touching... this is a very large topic) on #3, Culture.  My experience with companies at the 15 and 50 stage is that culture is almost never an intentional act.  Most founders, and most of us, stand for beliefs.  In a company you may start with, “We are about unparalleled customer service.” So, you work 24/7 and every customer expectation is met or exceeded. You hire friends or others who are just as excited about cigars, pools/spas, making after market auto products or providing marketing services.  Everyone is in heroic mode (saving the day or making customers ecstatic). 

Then your company gets to $1M in sales (this might start earlier or later by $500K) and you begin hiring people rather than zealots.  In most cases, what happens is that the culture of heroics and zealotry starts falling apart.  I have experienced companies reaching up to $5M before they actually confront the failing culture.  For the ones that survive this first culture stage, three things become paramount: customer focus, developing their first systems and moving from holding knowledge as power (the important stuff is in people’s heads). 

So let’s assume you make it through this first stage, what is culture likely to be?  Most often, I find that the culture focuses on work harder.  The survivors have revisit customer focus again.  This time, they confront and develop a clear idea about who their best customer, who they serve best and what kills their ability to make money.  The culture shifts from personal relationships and anecdotal business practices to systems.  Either outsiders come in and begin this process or the owners find good consultants.  The first formation of a management team happens along the way and often it is populated by survivors (people who did well in the company up to now).  There is still little intention or conscious focus on what culture we live and what culture and values we want to live. 

At this stage, with fifty employees, the culture usually gets murky.  It is one of the signs that the company is, again, in a no man’s land and often G&A costs are rise to a point where the company must confront: whether their business model works anymore; too many mini-cultures often from having brought in more people; and why the owners are in business (asking why you are in business is often met with blank stares at this stage, when at $3M the answer was clear and crisp). 

At 150 employees, there is a need for systemic culture and often CEO’s who’s companies are troubled as they approach 120 million have not focused on two things: spending most of their time on coaching their direct reports and keeping their culture alive and central to all of the business. 

Weigh in here.... agree? Disagree?  What have been your experiences in getting the gap closing?

Intentionally growing your company - The changing role of the CEO : Look at your people

Over the next few weeks, I will chat with you about five topics.  I believe that each topic is a key issue for growing your company from 15 to 50 and then to 150 people or more.  So, here is my take on that Holy Grail, on what companies and my clients need to focus:

 Know Thy Self 

Look at Your People

Culture

 Processes/Systems

Business Model

Today, we are tackling #2, Look at Your People.  My experience with companies at the 15 and 50 stage is that after, and along with the owner CEO, the key employees are the biggest reason that companies get stuck and do not make it to the next level.  Most often the Owner does not start by looking at themselves and getting others to weigh in on their gaps in experience, skills and capabilities and then determine whether they will continue to hold the top seat in their organization or apply themselves to the place they provide the most value.  If they decide to continue to remain CEO, most do not develop (on their own or with others) a professional development plan, including a set of specific actions and on a timeline. 

Part of developing and executing such a plan is that it forces the Owner to confront the brutal question... can they learn, get experience, etc. what they need to and within the timeframe that will work for the company and their exit?  The second result is that they begin holding themselves out as a model for everyone else and the expectation around developing key employees shifts when this happens.  I have worked with Harvard MBA’s who either got stuck on telling themselves (and everyone else), that they had no need of a development plan or they figured out where their gaps were and addressed them. 

At 15 and 50 people, many Owners feel that they can’t afford to hire the right people and make do.  I also hear from some that they can’t afford the coaching or other outside help that will close their or their employee’s gaps.  If this is the case, you probably do not have a sustainable business model, or are over-valuing what salary you should take out of the company.  Seriously, if you are going to do your first company, or CEO position or ..... you should plan on having some one in a trainer position and the amount of time/cost and be tailored to budget.  Just don’t convince yourself that you can’t afford it.  The potential consequences are too large. 

At 150 people or greater, the issues begin to change and often the Owner is in a position of having to deal with their ego (keeping up with bright people who have already done and experienced where you want to go).  In these cases, it is important to have some conversations about expectations regarding roles, responsibility and authority. 

Weigh in here.... agree? Disagree?  What have been your experiences in getting the gap closing help you need in sports, fitness, marriage/relationships or other areas, including business? 

Intentionally growing your company - Know Thy Self

Over the next few weeks, I will chat with you about five topics.  I believe that each topic is a key issue for growing your company from 15 to 50 and then to 150 people or more.  So, here is my take on that Holy Grail, on what companies and my clients need to focus:

Know Thy Self
Look at Your People
Culture
Processes/Systems
Business Model

Today, we are tackling #1, Know Thy Self.  Why is self-knowledge so critical to growing a sustainable company?  Ultimately, because culture is key (yes, I know I listed it as #3) and creating a culture from awareness and intention has got to be one of the most difficult undertakings imaginable. 

Why awareness and intention?... because most of us don’t sail through life creating those things perfectly by just being us.  We miss cues from others and from ourselves. 

My experience has been that unaware CEO’s get in their own way.  At some point, whether at 15, 50 or 150+ employees, they top out and their companies stall.  Unawareness come in lots of packages.  Do any of these resemble you?

1) Do you have to be the top dog and think that you have to the title?  Often these Business Owners would be happier by taking another title then CEO and doing that job;

2) There are those who are very bright, learn quickly and do things better than most of us.  This describes the vast majority of my clients.  These type often are unaware that they are stifling their companies because they are the smartest gal or guy in the room.  Everyone waits for the smartest guy in the room to solve the problem and none of their people ever get to make mistakes, learn and develop. 

Then there is group #3) There are those who just can’t delegate.  They have to control or their standards are really high and they feel no one meets those standards. 

Whatever the reason for the lack of awareness, many business owner’s don’t know themselves and usually don’t see the wake they are leaving.  If you resemble any of the above and are still reading this blog, congratulations! 

You are a member of an elite group, those who are willing to learn and grow.  Find someone or some group who will be unfailing in their support and challenge of you.  Place yourself in a position where you are more likely to observe and from what you observe, grow yourself. 

As an example, I asked one CEO who I work with to turn over management meetings to others and forbid himself from talking at those meetings.  Both he and his team learned that the team was valuable and had to step up when he was not there to save them.  The results for both sides was good. 

Another way to get some self-awareness is to use one of several scientifically calibrated surveys.  These are not tools like DISC or Myers Briggs.  While those two tools have some uses, the uses are limited. 

Scientifically calibrated surveys are tools that use a large pool of people (in this case executives who have been successful) and calibrate their responses to create a norm of where a CEO should fall on things like aggressiveness, diplomacy, initiative, certainty, etc.  Be sure to have your survey explained to you by someone trained in that survey and who is prepared to work with you on creating a professional development plan that will serve you.

So, Self-awareness is key to figuring out whether you are a good or bad fit for what you do and how you might improve from whatever level you are now.  Then you have to do something to close the gap around your weaknesses and develop your strengths. How have you learned to increase your self-awareness?  What would you recommend as a step?  Is learning something you do regularly and frequently? 

IMPACT 2014 Highlights

Each year, CEOs from leading companies in the Puget Sound meet to Further develop their leadership, improve their companies, network and have fun. 

 This is IMPACT. 

 IMPACT 2014 was held at Semiahmoo Resort over September 26-28th.  Click through to the video on this year’s event to remind yourself of the great time you had and the value of:

• Getting to meet and know 64 other CEO’s, executives and business owners in our Friday afternoon ice breaker and distillery tasting
• Learning about how other CEO’s/Executives/Business owners added value to their companies, during our Friday afternoon business owner panel and about making money off of the “seams” in capitalism from Brian Turner, our Friday night banquet speaker
• Benefiting from Saturday morning workshops on adding value in to your business 
• Playing golf, a relaxing afternoon at the spa or deep sea fishing
• Social time to develop friendships with others like yourself at Saturday night’s beer and pizza party
• Contributing to and receiving from your participation in the Sunday morning best practices roundtables

Intentionally growing your company

I work with CEO’s/Business Owners.  One of the areas my clients and I focus on is how to grow their companies sustainably.  To me, sustainably growing a company, means it is profitable; creates enough cash for its growth (or has a reasonable strategy for obtaining growth cash); does not need me, or anyone’s heroic actions; employees at every level are engaged in and feel their work is satisfying; its customers/clients can’t pull their money out of their pockets fast enough to hand it over (meaning they are ecstatic with the products/services of the company. 

One of the advantages that consultants have is that they see lots of businesses and know that their businesses have trends and share in similar growing pains.  One of the disadvantages that a business owner may experience is that they think what they experience is unique. 

About 2/3 of the businesses I deal with have 15 to 150 employees (about a third of them have 150 to 1,0000 employees). There are fairly big shifts that businesses experience at around 15-20 employees and again at around 50-70 employees and then at around 120-150 employees. 

The Holy Grail is figuring out how to help those businesses through the no man’s land - the grey areas - that are these transition points.  So, here is my take on that Holy Grail, on what companies and my clients need to focus on in order to grow sustainably:

1.    Know Thy Self:  Figure out what you do well and what you don’t.  Even more importantly, figure out what you like doing (gives you energy) and what you don’t like doing (takes away energy).  Focus on what your role is now and what it will become as you grow.... a hint... the larger your company grows, the less time you should spend on actually making product or providing service and the more time you should be spending on coaching and leading those who do make the product or provide the service.  What will that mean for you and will you like what you will be doing? 

2.    Look at Your People:  What do they do well?  What will they need to do well at the next step in your company’s growth?  Do they have the skills to take that next step?  If not, can they acquire those skills (close the gap)?

3.    Culture: What is it now?  What will it need to be at 50 or 150 people?  If it should be the same, how will you make sure that the culture/values continue?

4.    Processes/Systems: Do I have any?  Are they broken? If I do have processes and systems that work now, at what point won’t they work or need to be changed/adapted? What do those processes tell me about #1, 2 and 3?

5.    Business Model: Am I profitable now and how much cash does my company throw off/create?  Will my business model work at the next stage of growth (50 or 150 people)?  Why might it not? 

Over the next few weeks, I will focus on each of these five topics.  What is missing from this list?  What would you add or take away? 

Why the Right Attitude Builds Super Teams

Today we have a guest blog from Earl Bell:

Building a super team in the workplace (compared to a very average team) comes down to having (or not having): (1) talented employees with (2) the right attitude.  Both characteristics are important but I’ll take the right attitude over talent any day.  The right attitude builds super teams!

To use a metaphor that goes back to the day of coaching select players on super-teams in the world of youth baseball, we had the best team strengthening conversations after each practice and game.  They usually lasted less than 10 minutes but I believe them to be most important 10 minutes we could ever spend as a team.   By the way, these players and teams later competed in Cooperstown, NY and the Little League World Series.

Our format was always the same:  First, the players would take turns talking about what they saw another teammate do either during the practice or game that was exceptional or noteworthy.  No player was allowed to talk about themselves.  Second, each player was given opportunity to point out one thing they could have done better and will commit to, so that they can improve the next time…

So what were the outcomes of these meetings?  First, players offered personal observations about why their teammates and team were awesome.  This part of the meeting couldn’t help but pump up the team and reinforce positive behaviors.  Second, each player owned up to what they could control and do to become a better player and teammate.  This brought accountability and exposed each individual’s desire and commitment to help the team succeed at the next game or tournament competition.

The desire to compete and win, be part of a team and get better each day applies in both sports and business.  In the business world, sharing publicly when employees truly appreciate their co-workers achievements and success is extremely powerful.  Building a culture of trust where employees openly can talk about what they will do to get better creates a dynamic where the greatest fear for an employee is not letting themselves down, but instead letting their teammates down, is a powerful element of team building. 

You want employees that have the strength, persistence and desire to be a great teammate.  This job is not for everyone.  However, this is exactly what part of the job description should be for your employees, if you want to compete and win in the game of business.  What are you currently doing to create a super-team at your place of business?  What can you do in the future to improve upon what you are currently doing?  What is the value to your business in “getting it right?”  What is the cost to your business if you “get it wrong?” 

EARL BELL

EARL BELL is the author of, Winning in Baseball and Business, Transforming Little League Principles into Major League Profits for Your Company, which provides a roadmap to success for leaders that desire to build thriving companies in a very competitive 21^stcentury business environment.  Earl believes that “everything you need to know about business, leadership and team building can be learned from Little League baseball.”

Earl conducts workshops, coaches and consults with owners, business leaders and their teams, teaching them how to dramatically reduce the time it takes to improve profitability, customer experience, employee engagement and company value, while simultaneously increasing discretionary time and reducing both stress/employee burnout.  He believes the secret to winning in baseball, business and life can be summarized in a simple formula:  Winning = Service + Humility. His motto is that Winning in Business is a Team Sport!

Earl has served in the Chief Financial Officer role for numerous companies throughout North America. His personal passion is youth sports and he has coached 28 teams since 2002.  Earl is a CPA, graduated from SU (Seattle University) with a BA in Accounting and from the MILL (Mercer Island Little League) with a Master’s in Youth Baseball.

Earl Bell can be reached at  earl@earlbell.com and 206-420-5946