Don’t Waste Time in Bad Meetings!

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Everyone has them, but boy can they be painful.  No, I’m not talking about your annual physical (a worthwhile use of time!).  I’m talking about meetings.

According to Harvard Business Review, the average executive spends 23 hours per week in meetings. 23 HOURS A WEEK! That is just nuts. It’s not that meetings are a complete waste of time; ideas are conceived and problems are solved in meetings. But most meetings are not run efficiently. They waste a substantial amount of time. And we all know time is finite, and time is money.

Short, productive meetings aren’t a pipe dream. Here are a few basic steps to making the most of every minute:

  1. Each meeting should have a clear objective. The meeting leader must state the objective at the beginning of the meeting.
  2. The only people who should be at a meeting are the ones who are needed there.  You don’t need anyone to “observe” as a “stakeholder.”  Each person present should be integral to reaching the goal of the meeting.
  3. Require an agenda – even if it’s rough – in advance of the meeting.  Familiarize yourself with material that is pertinent to the meeting and ask others to do the same.
  4. Begin the meeting by discussing the most important issue.  If nothing else is accomplished, this will be it. List each item in order, and include the time allotted for each.  Post the agenda somewhere for all to see during the meeting.
  5. Start on time and wait for no one.  Latecomers will get the picture, and everyone else will be appreciative. People will show up (on time) to your meetings in the future, because they know exactly what to expect.
  6. Ban technology. No, you aren’t the parent, but it’s your meeting. Multi-tasking doesn’t work. Most people won’t like it, but you can bet they won’t be distracted.
  7. Stay focused and on track.  Chasing squirrels, as a friend of mine likes to say, is a big time-waster. Do not allow people to veer off on other topics, no matter how important they are, or how “quickly” they can be covered.
  8. Be sure that all attendees understand the plan and know exactly what action they need to take post-meeting.
  9. End on time.  This is crucial.  People will show up to future meetings because they know precisely when it begins and ends. The ideal meeting length is 30 minutes, but no meeting should surpass 60 minutes. After that, you lose people.  If they don’t find a physical way out then they are planning what to have for dinner. A meeting lasting longer than 60 minutes must have breaks, typically 10 to 15 minutes.
  10. Ensure that a follow-up email is sent within 24 hours.  Include all important decisions that were made.  Reiterate the tasks assigned to each person.  Even when all objectives are met in record time, the whole thing is pointless if there’s no follow-through.

The next three suggestions are unconventional ideas (inspired during an unproductive meeting, perhaps?) from Scoro. Different is good; it wakes people up and adds energy to the room.

  • Meet outside the office—a picnic bench, park, coffee shop, wherever. A change of scenery wakes people up and seems to improve moods.
  • Have a stand up meeting. Seriously. Watch the extraneous talking come to an abrupt halt, and the ideas flow.
  • Be creative. Food manufacturer Plum Organics has a creative/brainstorming meeting during which they color in coloring books. According to the company’s innovation director, Jen Brush, “It’s proven that coloring during a meeting helps promote active listening, and is more beneficial than multitasking on something like email.”

It’s time to wrap up this post — any more will be a waste of time.

Good luck with your next meeting!

Prioritization: The Foremost Rockefeller Habit for Success

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There is a belief that the best way to improve your work productivity is to emulate the habits of someone highly successful. John D. Rockefeller, who founded the Standard Oil Company in 1870 and ran it until 1897, is one of the true titans of American business. And so, the book Mastering the Rockefeller Habits by Verne Harnish made its way onto my reading list.

As the book documents, Rockefeller’s approach to running a growing business was really quite simple.  He identified three underlying habits that he considered essential to good business management:

  1. Setting priorities for the organization.
  2. Collecting and analyzing sufficient management data.
  3. Establishing an effective organizational rhythm.

Of the three key habits, setting priorities is first, and arguably the most important.

Setting Company Priorities

Rockefeller developed a list of the Top 5 priorities of his business for the upcoming year and the next quarter.  He also ranked those top priorities in order and set a clear Top 1 priority from among his Top 5. He communicated these priorities throughout his company and encouraged employees to set personal priorities that aligned with and supported the company’s priorities.

It seems to be common sense to solve the problem at hand before moving to another challenge, but not every team or employee has the discipline to follow through to completion of a difficult task. Rockefeller’s managers provided the discipline needed to make sure the top priority was completed before the second priority was undertaken.

As productivity tools go, Rockefeller’s Top 5 priorities list is one of the most widely used in American business history.  As an example of the effectiveness of the tool and how soon it came to be appreciated by others, Harnish relates the story of a management consultant who was summoned to the office of Charles Schwab in the early 1900s. At the time, Schwab was the CEO of Bethlehem Steel, and he was looking for ideas to improve the business.

The consultant told Schwab how he could improve Bethlehem Steel’s bottom line by using a simple productivity tool. It was Rockefeller’s Top 5 priorities list.

The consultant told Schwab to start each day by writing down the top 5 things he wanted to accomplish for the company’s benefit. They had to be prioritized from 1 to 5, with 1 being the objective likely to have the greatest impact on the business.

Schwab was instructed to work only on priority 1 until it was completed. If it was not accomplished by day’s end, it remained the top priority the next day. Under no circumstance could he move to priority 2 without completing priority 1.

The consultant told Schwab to implement this principle and afterwards pay him whatever he felt the advice was worth. If it didn’t work, Schwab owed him nothing. A period of time elapsed and one day the consultant received a check in the mail from Mr. Schwab. The check was written for $25,000, which was a great deal of money in those days – something over $600,000 in today’s terms. That’s how beneficial the borrowed productivity tool was to Bethlehem Steel, which became a world leader in its industry.

Rockefeller knew, and Schwab learned, this: Management of any business, large or small, needs to clearly establish and communicate to employees important priorities that will help the company make progress towards its vision.

How well have you identified and articulated to employees your company’s priorities? If you’re not sure, give Trillium Financial a call at (404) 353-2148 and we’ll help find the answer.

Get a Feel for Your Business by Writing Down the Numbers

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In the era of smart phones, smart cars and smart homes, you might feel advice about tracking your business results with an old-school number 2 pencil is a little out of step.  You shouldn’t.

There is an old saying: “From lips to pencil tips,” which suggests that by physically writing your key figures you become more familiar with them.  Like a golfer who leaves the course saying, “I need to do better than a double bogey on number 7,” entrepreneurs who track their key figures by hand are extremely aware of what they need to improve.

Writing the key figures down month after month, you commit them to memory and become more focused on their importance to your success.  It’s a practice that is highly recommended for new business owners, and I know several veteran business owners who swear by it.

What you should track

Take a piece of paper and write your key performance figures (check out our Metrics for Success guide for more info on these numbers as well).  For most business owners, the common ones are:

  • Sales by month
  • Gross profit by month
  • Net profit by month
  • Cash flow by month
  • Accounts receivable
  • Accounts payable

Sales by month measures top-line revenue growth.  In business, either your company is growing or it has begun dying.  Watch this number closely.  Consider what is going on within your industry, both nationally and in the local market.  Set a sales goal each month that represents true, attainable growth.  If you fall short, take time to understand why and take corrective action as necessary.

Gross profit by month measures a company’s markup on its cost of goods (or services) sold.  This figure gives an indication of how well ownership has controlled its costs and, possibly, whether goods and services are priced in line with what the market will bear.  In times of inflation, it’s easy for cost increases to outpace increases in your selling prices. Committing this number to paper will help keep you abreast of the situation.

Net profit by month builds on the gross profit by month analysis.  While gross profit focuses on cost of goods or services sold, net profit also encompasses administrative expenses, interest and taxes.  If gross profit is optimal but net income is lagging, take a hard look at trimming administrative costs. Perhaps there is a way to manage interest costs. Consider hiring a tax expert who is knowledgeable of your industry.

Cash flow by month measures the company’s liquidity.  It’s how much cash is getting added to or subtracted from the bank in your bank account.  By recording this figure each month, you will naturally begin thinking about short-term, upcoming events that will impact your liquidity. Many service industry clients prepare for weak cash flow in the month of December, when people have holiday-related expenditures in mind. Conversely a retail business expects its best cash flow to occur in December.  Seasonal aspects to a business is a fact of life that should be considered in the business plan.

Tracking Accounts Receivable helps to see how much you expect to collect in the next 30 to 60 days.  Seeing this account grow can be either the result of sales growing or another issue like a customer slowing down their payments.  Understanding the reason for the growth will help you better understand your future cash flow.

Accounts Payable is the amount you owe vendors that must be paid within the next 30 to 60 days.  This balance can tell you how much cash will flow out of your business and thus plan the disbursements based on your inflows from Accounts Receivable.

Focus on important customers

In addition to tracking the numbers, it’s wise to use a second sheet of paper to track results on a customer-by-customer basis. This makes it very clear which customers are most important to your success. And, if an important customer starts slipping away, you will quickly become aware and might be able to salvage the relationship. Your second sheet will track:

  • Sales by month by customer; and
  • Gross profit by month by customer

If sales to a significant customer slip unexpectedly, learn what you can from the employee servicing the account. Then, follow up personally with the customer. It could be that the customer has fallen on difficult times. Maybe there is a competitor trying to make inroads.  Whatever the cause, do what you can to nip it in the bud.

When gross profit by customer increases or decreases from one month to the next, you want to know why. This is a very real measurement of where you are making money and where you are losing it. You need to understand what has happened to that one customer relationship. If gross profit for that customer is up, can you move other customer relationships in the same direction? If it’s down, can you prevent the cause from impacting other customers?

If you would like to get more detailed information on these metrics, download our Metrics for Success guide. If you have questions about how to get started or what your numbers are telling you, give us a call at (404) 353-2148 or email info@trilliumfinancial.com.

Is It Time to Re-Examine Your Business Methods?

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by Michael Iverson

Several years ago, I read an article about things in everyday life that most people do incorrectly.  In many instances, it’s simply because that’s the way they’ve always done them.

For example, would you believe that only 5 percent of all Americans wash their hands correctly? The correct way involves 20 seconds of vigorous rubbing with soap and water.   Although soap and water are parts of the routine, only 5 to 10 seconds of washing is the norm.  But, washing the right way lessens your chances of contracting flu and other illnesses.

It seems that some of the instruction we get at various points in life is of dubious value.  One of my favorite quotes is from the great American author Mark Twain. “It isn’t what you don’t know that gets you into trouble. It’s what you know for sure that just isn’t so.”

People tend to latch onto an idea, often learned at a young age, and never let go of it. They believe it to be the truth, and it’s extremely difficult to convince them otherwise – even when the evidence against their idea is overwhelming.
If you like the idea of constant improvement, as most entrepreneurs do, you have to keep an open mind and re-examine notions about the things you do daily.

What you re-examine might be age-dependent

So, what are the things you do every day in your business that ought to be reexamined? The answer can depend on how long you have been in business.

Business owners in their fifties came into business in an entirely different economic and technology environment than we have today.  Many notions about avoidance of debt are rooted in the double-digit interest rate environment of the 1980s.  Obviously, the interest rate scenario has changed greatly, meaning carrying debt is less of an issue than when they got started in business.

Some owners in their fifties are also slow to update websites because of outdated ideas about the costs involved.  Website development costs are significantly lower than they were just a few years ago. If an owner has been putting off a refresh of capital or technology, it’s time to revisit these issues.

Many business owners in their forties will benefit from paying more attention to accounting and legal issues. In their early years of business, most entrepreneurs are pretty casual about their business relationships.  At this stage of your business life, the stakes are a bit higher; it’s time to put your important business agreements in writing.

For example, did you choose to operate as a proprietorship because it was the cheap and easy choice to make ten years ago?  You might want to revisit the matter depending on your goals.  If you are worried about scaling a company and limiting your liability, a Limited Liability Company, S-Corp. or C-Corp would be the better choice.  A proprietorship is unlimited liability.   Also, it might make sense, now, to take a course in accounting from a local college.  It’s hard to achieve peak performance unless you are well-versed in how to keep score and the numbers in business is how you measure winning from losing.

As you re-examine your business make sure that you have a written plan with strategies and numbers.  A plan helps provide important guidepost for making decisions about the business, or to explain your thought process, and your vision to employees and business partners.  The plan does not have to be a 100-page novel.  As a matter of fact, good plans can be one or a few pages of well thought out information and numbers.  Being concise and clear with your vision can help you execute and iterate faster.

Can Humility Help Us in Business?

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by Tom Mallory, Acadia Associates, Inc.

Mention the name Lee Iacocca and most people think “great leader.” After all, he brought Chrysler back from disaster, raised its stock price far above his competitors, wrote a successful business book, had adoring fans worldwide, and even was urged to run for president. But according to Jim Collins in his book Good to Great, Iacocca’s business success was in the first half of his tenure before he “diverted attention to making himself one of the most celebrated CEOs in American business history.” As Collins elaborates, he appeared regularly on talk shows, starred in over 80 commercials, and widely promoted his autobiography.

The second half of his tenure was different. “Chrysler’s stock fell 31 percent behind the general market. He postponed his retirement so many times that insiders joked that Iacocca meant ‘I Am Chairman of Chrysler Corporation Always’.” Then after his retirement, he launched a hostile takeover bid for Chrysler with Kirk Kerkorian which failed.

Lee Iacocca is just one example of business leaders who let pride foil their “enduring greatness.” Others, as Collins points out, were Al Dunlop at Scott Paper, Stanley Gault at Rubbermaid, and CEOs from many name brand companies such as R.J. Reynolds, Teledyne, Eckerd, and Bank of America.

In fact, in over two thirds of the comparison cases Collins’ team studied, “the presence of a gargantuan personal ego contributed to the demise or continued mediocrity of the company.” Thus, the common characteristic that lacked in these potentially great business leaders was humility.

In contrast, Darwin Smith of Kimberly-Clark, Colman Mockler of Gillette, and George Cain of Abbott Laboratories rose to being great leaders because of  a “paradoxical blend of personal humility and professional will.” Ever heard of these great men? That’s the point. They shunned attention of themselves, were modest, and gave credit to others. They had tremendous inner strength to repress their ego and focus on the larger goal of building a great company.


Humility Analyzed

Maybe there’s a place for being humble but it couldn’t be in the competitive, driving, and sometimes cutthroat world of the workplace. Strength and determination win on this battleground. Besides, isn’t being humble perceived as being weak? Do I want my competitors and, worse, my potential clients believing I’m weak?

In addition, don’t we all secretly strive to be flattered, recognized by our peers (and hopefully our bosses), and ultimately honored in large public ceremonies?  Sure we do.  So where’s the business benefit from being humble?

 

Humility and Success Through the Years

Success through humility is not a new concept.

Perhaps one of the earliest humble businessmen was Benjamin Franklin, who described himself as a “humble inquirer.” According to Walter Isaacson in Benjamin Franklin, An American Life, Franklin began developing this style around age 20 after reading about Socrates’ method of building an argument through “gentle queries.” Uniquely disarming to his opponents, this style won many friends starting with the Governor of Pennsylvania after Franklin ran away from Boston to Philadelphia at age 17. He used his humble style along with wit, an astounding literary grasp, patience, and determination throughout his multiple careers. Although Franklin referred to himself as simply a “printer,” Isaacson believes that he was “America’s best scientist, inventor, diplomat, writer, printer, and business strategist” during his 84-year life.

George Washington is described by many authors as always moderate, always modest.  As Willard Randall in George Washington: A Life describes, just prior to resigning as commander-in-chief after the British surrendered, “his mortal enemy, King George III, has said that if George Washington could give up power, he would indeed be the greatest man of the eighteenth century.”  Washington avoided the spotlight literally by being stealthy and elusive in battle (hence the English called him “The Fox”) but also by giving others the credit. His military officers loved him for this and cried along with him at Fraunces Tavern in New York on November 25, 1783 when he bid his officers a final farewell. He did not seek higher status or title even though the country begged for this, and he tried numerous times to return to his life as simply a “planter.” On his last day as President at the inauguration of John Adams, he “wore a plain black suit as he walked alone to Congress Hall while Adams in a lavish new suit rode in a new resplendent carriage of state.”

Abraham Lincoln never let his ego get in the way of his primary ambition for the larger cause of keeping the nation together. As James McPherson writes in Battle Cry of Freedom, he was humble: shy, awkward in manner, and modest. He acknowledged his failures in numerous conspicuous ways, received suffocating amounts of criticism without seeking revenge, and felt more at home with common folks. “Common looking people are the best in the world: that is the reason the Lord makes so many of them,” he once wrote. A line in his Gettsyburg Address sums up his humility: “The world will little note nor long remember what we say here, but it can never forget what they did here.”

Colin Powell and Jimmy Blanchard are example of current leaders who excel because of their humility. Powell “grew up poor but rich in spirit and values,” as he says in his book My American Journey.  Among his 13 “Rules of Life” are being kind, sharing credit, and letting go of your ego. Like Franklin’s humble self description as “printer,” Powell sums up his unprecedented military career as simply being “a soldier.” Jimmy Blanchard, CEO of Georgia-based Synovus, always displays humility in his business and community life. His company, which was started by “a single act of kindness in helping a female mill worker,” continues to “treat folks right by doing the right thing.” Fortune Magazine in 1999 rated it the #1 place to work in America.

Becoming Humble

Jim Collins writes, “Humility + Will = the Enduring Level 5 Executive.”  But how much humility is needed to go from a “Level 4 Efficient Leader” to Level 5?  Certainly Iacocca had the “will” as exhibited by his “ferocious resolve.” But did he need a little or a lot of humility to achieve greatness?  Is it worth investing our time towards better understanding and perhaps becoming at least a little more humble?  Alfred Ells, a senior therapist with New Life Clinic and founder of House of Hope Counseling, suggests 10 ways towards becoming humble:

  1. Choose to serve others. Doing so reduces our focus on ourselves and builds up others. But when serving others costs us nothing, we should question whether or not we are really serving.
  2. Receive correction and feedback graciously. Look for the kernel of truth in what people offer you, even if it comes from a dubious source. Ask yourself, “What is being shown to me that I can’t see.”
  3. Take wrong patiently. When something is unjust, we instinctively want to strike back and rectify it. However, patiently responding to unjust accusations and actions of others builds and displays our strength and character.
  4. Acknowledge your mistakes and weaknesses to others. It’s ironic that it is so difficult to admit our mistakes and weaknesses even to ourselves since through these failures we learn. But the true test of humility is acknowledging our faults to others. Wisdom, however, dictates that we do so with those we trust.
  5. Actively submit to authority. Our culture does not value submission; rather it promotes confrontation and individualism. Submitting to those in authority, particularly if we disagree with them, reveals your strength.
  6. Accept a lowly place. If you find yourself wanting to sit at the head of the table, desiring to be recognized for your accomplishments, or becoming offended when others are honored, then pride is present. Support others being recognized rather than you. Look for and accept the lowly place; it is the place of humility.
  7. Purposely associate with people of lower state that you. Society is status conscious and people naturally want to socialize upward. Resist the temptation of being partial to those with status or wealth.
  8. Be quick to forgive. Forgiveness is possibly one of the greatest acts of humility. To forgive is to acknowledge a wrong that has been done to us and to release our right of repayment for the wrong. Forgiveness is denial of self.  Forgiveness is not insisting on our way and our justice.
  9. Cultivate a grateful heart. The more we develop an attitude of gratitude for the gifts we constantly receive in life, the more we realize our successes have been gifts earned from giving.
  10. Purpose to speak well of others. Saying negative things about others puts them “one down” and us “one up.” Speaking well of others builds them up instead of us. “I will speak ill of no man, and speak all the good I know of everybody,” said Ben Franklin.

It’s ironic that one of the ways to be humble is by acknowledging our weaknesses and mistakes to others. However, to do this and other humble acts takes tremendous inner strength and confidence – the kind of strength and confidence that leads to enduring leadership.

So humility is not what business would perceive it to be: weakness. Humility allows weakness, which we all have, to be transformed into strength. Being humble also reveals this strength to others, and this strength continues to build within us if we practice humility. Ultimately, humility lifts others and in doing so lifts you. But watch out. It’s even more difficult to be humble from a higher position.

“The closest we ever come to perfection is
when we write our resumes.”
– Executive search consultant

“The superior man is modest in his speech,
but exceeds in his actions.”
– Confucius

“It is unwise to be too sure of one’s own wisdom.
It is healthy to be reminded that the strongest
might weaken and the wisest might err.”
– Mohandas Gandhi

“I am not the lion, but it fell to me to give the lion’s roar.”
– Winston Churchill

“You can accomplish anything in life, provided
that you do not mind who gets the credit.”
– Harry Truman

Building a Culture of Servant Leadership

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By Michael Iverson

Imagine if this was your first experience with an airline:  Leaving town for vacation, a friend and his young family were among the last passengers to board their Southwest Airlines flight. As the family made its way to the plane, crew members warned there was no room in the overhead bins for their carry-ons.  The captain told my friend to leave the carry-ons at the end of the breezeway and he would find a place for them. When my friend got to his window seat, he saw the captain himself carrying the bags down the stairs to employees loading luggage onto the plane!  My friend thought: What other airline captain would do that?  This act of servant leadership had a profound impact on him and he became a loyal customer of Southwest.

Servant leadership is a leadership style that has been around for over 30 years.  It was first introduced in 1970 by former AT&T executive Robert Greenleaf.  It really came into its own in the 1980s and 1990s, when companies that adopted servant leadership (such as Southwest Airlines and Starbucks) first achieved success and admiration.

But what exactly is servant leadership?  Servant leaders selflessly put their employees’ needs ahead of their own. The employees, in turn, put the needs of customers first.  Customers, appreciative of the attention and care they receive, reward the business owner with their loyalty.  It is, by design, a cycle of virtuous behavior.

It must be noted, however, that servant leadership is a model that can conflict with the traditional management philosophy of a leader needing to exert authority over employees.

Behavior of a Servant Leader  
The servant leader’s natural inclination is to help others.  He or she helps his employees become proficient in their work. A servant leader shows them how they can pursue careers that achieve balance between work and family life.  And, he or she rewards their efforts with financial consideration that is truly representative of the value they add to the business.

Its leadership by example and with integrity, teaching employees how to put the needs of others first.  A servant leader purposely stays out of the limelight, allowing his team members to accept the accolades and not themselves.  He or she trusts his employees to do what’s right for customers and the business.

Management consultant and author Franklin Covey put trust as the hallmark of a servant leader.  He cited 13 behaviors a business owner must adopt, including:

  1. Talk straight:  Tell the truth. Let people know where you stand.
  2. Demonstrate respect:  Show you genuinely care.  Respect everyone, including those who can’t do anything for you. Show kindness in little ways.
  3. Create transparency: Be genuine, open and authentic. Don’t hide information or have hidden agendas.
  4. Right wrongs:  Apologize quickly. Make restitution where possible. Demonstrate humility.
  5. Show loyalty: Give credit to others.  Be loyal to those absent and represent those who aren’t there to speak for themselves.
  6. Deliver results:  Establish a track record of results.  Don’t make excuses for not delivering.
  7. Get better:  Continuously learn and improve.  Thank people for feedback and act on feedback received.
  8. Confront reality:  Meet issues head-on.  Address the “tough stuff” directly.
  9. Clarify expectations:  Disclose and reveal expectations.  Ensure expectations are clear.
  10. Practice accountability:  Hold yourself and others accountable.  Take responsibility for good or bad results.
  11. Listen first:  Listen before you speak.
  12. Keep commitments:  State your intentions and then act on them.
  13. Extend trust:  Extend trust abundantly to those who have earned it.

Business owners who have adopted the servant leadership philosophy say it promotes team-building, achievement, positive change and high employee morale.  So, what’s the catch?

This style of leadership does not come naturally for some people.  Our achievement oriented focus is taught in school and does not consistently encourage servant leadership traits.  It requires an intentional approach to live the principles outlined by Covey.

If you can incorporate the principles of servant leadership into your business, you can provide an environment for your employees that is much more than a place to work.  You are inviting them to a better way to work, and a better way to live.

To discuss whether your business is a good fit for the servant leadership model, contact Trillium Financial.

The Business Owner’s Pursuit of Happiness

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One of the pleasures of my work is being around business owners who are generally happy with their lives. I don’t think it’s an exaggeration when I say that, as a group, they are among the happiest people I know.  I often marvel at how this could be the case given the many challenges and responsibilities they face.

Owning a business has the potential for personal satisfaction on several levels. First, most entrepreneurs take satisfaction in setting their own work schedules and prioritizing what needs to be accomplished.  Another form of satisfaction comes from accepting the risks involved in running a business and using one’s own energy and effort to make the business successful. It’s gratifying to experience the fruits of your labor.

One of those fruits, of course, is financial. When a business is successful, the owner often enjoys financial rewards that exceed what he or she would likely achieve as someone else’s employee. That’s an important motivator for starting a business and making sure it continues to be successful.

It would be simplistic, however, to conclude that satisfaction and achievement add up to what is generally referred to as happiness.

What Is Happiness?

The idea of happiness is difficult to express in terms that are agreeable to everyone. Much has been written about the pursuit of happiness, yet its meaning is open to interpretation. For many people, eat, play and sleep would pretty well cover it. For others, the real pursuit is for wealth, pleasure and a good reputation.

The great philosophers put a good deal of thought into the notion of happiness and concluded there was more to it. Socrates believed that the key to happiness was to turn one’s focus away from the body and towards the soul. He also considered happiness to be the by-product of a moral life.

Aristotle personalized the concept. “Happiness depends on ourselves,” he wrote.  In Aristotle’s mind, true happiness required attainment of both physical and mental well-being within an environment that cultivated virtue.

How do the ideas of Socrates and Aristotle match up with your pursuit of happiness, especially as it pertains to your business?  My experience with entrepreneurs tells me that most yearn for more than eat, play and sleep – not only for themselves, but for their employees.

It usually starts with the business owner developing the work environment that allows him or her to do his/her best work.  The business owner pursues happiness by establishing an environment that supports personal business success, professional growth, personal freedom, friendship, family time, and spirituality.

A business owner who creates such an environment – where a person can thrive, both personally and professionally – would likely hire those who share his/her values. Once they are hired, the leader can show each of them how to make the most of the opportunity presented to them.

There exist people whose pursuit of happiness includes the pursuit of the happiness of others. I have seen this dynamic at work with a number of entrepreneurs. They know how this approach can build a successful company.  The lives of their employees are enriched in unique and profound ways. And, a successful company contributes to a vibrant local community.

That’s a wonderful legacy for any entrepreneur.

Humility’s Unexpected Benefits

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by Tom Mallory

“Always acknowledge a fault. This will throw those in authority off their guard and give you an opportunity to commit more.”
– Mark Twain

“If I only had a little humility, I’d be perfect.”
– Ted Turner

Can humility help us in business?

Maybe there’s a place for being humble but it couldn’t be in the competitive, driving, and sometimes cut throat world of the workplace. Strength and determination win on this battleground. Besides, isn’t being humble perceived as being weak? Do I want my competitors and, worse, my potential clients believing I’m weak?

In addition, don’t we all secretly strive to be flattered, recognized by our peers (and hopefully our bosses), and ultimately honored in large public ceremonies? Sure we do. So where’s the business benefit from being humble?

Humility Analyzed

Mention the name Lee Iacocca and most people think “great leader.” After all, he brought Chrysler back from disaster, raised its stock price far above his competitors, wrote a successful business book, had adoring fans worldwide, and even was urged to run for president.

But according to Jim Collins in his book Good to Great, Iacocca’s business success was in the first half of his tenure before “he diverted attention to making himself one of the most celebrated CEOs in American business history.” As Collins elaborates, he appeared regularly on talk shows, starred in over 80 commercials, and widely promoted his autobiography. At one point, Iacocca stated, “Running Chrysler has been a bigger job than running the country. . . I could handle the national economy in six months.”

The second half of his tenure was different. “Chrysler’s stock fell 31 percent behind the general market. He postponed his retirement so many times that insiders joked that Iacocca meant “I Am Chairman of Chrysler Corporation Always.” Then after his retirement, he launched a hostile takeover bid for Chrysler with Kirk Kerkorian which failed.

Lee Iacocca is just one example of business leaders who let pride foil their “enduring greatness.” Others, as Collins points out, were Al Dunlop at Scott Paper, Stanley Gault at Rubbermaid, and CEOs from many name brand companies such as R.J. Reynolds, Teledyne, Eckerd, and Bank of America. In fact, in over two thirds of the comparison cases Collins’ team studied, “the presence of a gargantuan personal ego contributed to the demise or continued mediocrity of the company.” Thus, the common characteristic that lacked in these potentially great business leaders was humility.

In contrast, Darwin Smith of Kimberly-Clark, Colman Mockler of Gillette, and George Cain of Abbott Laboratories rose to become great leaders because of a “paradoxical blend of personal humility and professional will.” Ever heard of these great men? That’s the point. They shunned attention of themselves, were modest, and gave credit to others. They had tremendous inner strength to repress their ego and focus on the larger goal of building a great company.

Humility and Success through the years

Success through humility is not a new concept.

Perhaps one of the earliest humble businessmen was Benjamin Franklin, who described himself as a “humble inquirer.” According to Walter Isaacson in Benjamin Franklin, An American Life, Franklin began developing this style around age 20 after reading about Socrates’ method of building an argument through “gentle queries.” Uniquely disarming to his opponents, this style won many friends, starting with the Governor of Pennsylvania after Franklin ran away from Boston to Philadelphia at age 17. He used his humble style along with wit, an astounding literary grasp, patience, and determination throughout his multiple careers. Although Franklin referred to himself as simply a “printer,” Isaacson believes that he was “America’s best scientist, inventor, diplomat, writer, printer, and business strategist” during his 84-year life.

George Washington is described by many authors as always moderate, always modest.  As Willard Randall in George Washington: A Life describes, just prior to resigning as commander in chief after the British surrendered, “his mortal enemy, King George III, has said that if George Washington could give up power, he would indeed be the greatest man of the eighteenth century.” Washington avoided the spotlight literally by being stealthy and elusive in battle (hence the English called him The Fox) but also by giving others the credit. His military officers loved him for this and cried along with him at Fraunces Tavern in New York on November 25, 1783 when he bid his officers a final farewell. He did not seek higher status or title even though the country begged for this, and he tried numerous times to return to his life as simply a “planter.” On his last day as President at the inauguration of John Adams, he “wore a plain black suit as he walked alone to Congress Hall while Adams in a lavish new suit rode in a new resplendent carriage of state.”

Abraham Lincoln never let his ego get in the way of his primary ambition for keeping the nation together. As James McPherson writes in Battle Cry of Freedom, he was humble:  shy, awkward in manner, and modest. He acknowledged his failures in numerous conspicuous ways, received suffocating amounts of criticism without seeking revenge, and felt more at home with common folks. “Common looking people are the best in the world: that is the reason the Lord makes so many of them,” he once wrote.  A line in his Gettsyburg Address sums up his humility: “The world will little note nor long remember what we say here, but it can never forget what they did here.”

Colin Powell and Jimmy Blanchard are example of current leaders who excel because of their humility. Powell “grew up poor but rich in spirit and values,” as he says in his book My American Journey. Among his 13 “Rules of Life” are being kind, sharing credit, and letting go of your ego. Like Franklin’s humble self description as “printer,” Powell sums up his unprecedented military career as simply being “a soldier.” Jimmy Blanchard, CEO of Georgia-based Synovus, always displays humility in his business and community life. His company, which was started by “a single act of kindness in helping a female mill worker,” continues to “treat folks right by doing the right thing.” Fortune Magazine in 1999 rated it the #1 place to work in America.

Becoming Humble

Jim Collins writes, “Humility + Will = the Enduring Level 5 Executive.” But how much humility is needed to go from a Level 4 Efficient Leader to Level 5?  Certainly Iacocca had the “will” as exhibited by his “ferocious resolve.”  But did he need a little or a lot of humility to achieve greatness?  Is it worth investing our time towards better understanding and perhaps becoming at least a little more humble?  Alfred Ells, a senior therapist with New Life Clinic and founder of House of Hope Counseling, suggests 10 ways to work toward becoming humble:

  1. Choose to serve others. Doing so reduces our focus on ourselves and builds up others. But when serving others costs us nothing, we should question whether or not we are really serving.
  2. Receive correction and feedback graciously. Look for the kernel of truth in what people offer you, even if it comes from a dubious source. Ask yourself, “What is being shown to me that I can’t see.”
  3. Take wrong patiently. When something is unjust, we instinctively want to strike back and rectify it. However, patiently responding to unjust accusations and actions of others builds and displays our strength and character.
  4. Acknowledge your mistakes and weaknesses to others. It’s ironic that it is so difficult to admit our mistakes and weaknesses even to ourselves since through these failures we learn. But the true test of humility is acknowledging our faults to others. Wisdom, however, dictates that we do so with those we trust.
  5. Actively submit to authority. Our culture does not value submission; rather it promotes confrontation and individualism. Submitting to those in authority, particularly if we disagree with them, reveals your strength.
  6. Accept a lowly place. If you find yourself wanting to sit at the head of the table, desiring to be recognized for your accomplishments, or becoming offended when others are honored, then pride is present. Support others being recognized rather than you. Look for and accept the lowly place; it is the place of humility.
  7. Purposely associate with people of lower state that you. Society is status conscious and people naturally want to socialize upward. Resist the temptation of being partial to those with status or wealth.
  8. Be quick to forgive. Forgiveness is possibly one of the greatest acts of humility. To forgive is to acknowledge a wrong that has been done to us and to release our right of repayment for the wrong. Forgiveness is denial of self. Forgiveness is not insisting on our way and our justice.
  9. Cultivate a grateful heart. The more we develop an attitude of gratitude for the gifts we constantly receive in life, the more we realize our successes have been gifts earned from giving.
  10. Purpose to speak well of others. Saying negative things about others puts them “one down” and us “one up.” Speaking well of others builds them up instead of us. “I will speak ill of no man, and speak all the good I know of everybody,” said Ben Franklin.

It’s ironic that one of the ways to be humble is by acknowledging our weaknesses and mistakes to others. However, to do this and other humble acts takes tremendous inner strength and confidence – the kind of strength and confidence that leads to enduring leadership.

So humility is not what business would perceive it to be: weakness. Humility allows weakness, which we all have, to be transformed into strength. Being humble also reveals this strength to others, and this strength continues to build within us if we practice humility. Ultimately, humility lifts others and in doing so lifts you. But watch out. It’s even more difficult to be humble from a higher position.

Tom Mallory is a partner at Acadia Associates, Inc., an Atlanta-based executive firm. He can be reached at TMallory@AcadiaAssociates.com or at 404-467-8900.

What Should A CEO’s Role Be?

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by Tim Fulton, Vistage Group Chair

I was asked recently to describe the role of the Chief Executive Officer (CEO) of an organization. As I considered the question I realized that there were at least six that came to mind. I am sure there are more. Here are the six roles of a CEO I described:

Casting Director

I believe that staffing a small business is much like casting a movie or a play. No matter how good a screenplay is, if the cast is not strong, the production will be a flop. Small businesses are the same way. You can have a dynamite business plan, but it’s the people who make it successful.

Jim Collins, author of Good To Great, said it best: “You must get the right people on the bus, wrong people off the bus, and the right people in the right seats.” This may be the most important role of the CEO.

Scorekeeper

I attended my son’s baseball game recently and encountered a very interesting (and frustrating) situation. The game started and it became apparent right away that nobody was operating the scoreboard. No record of balls & strikes, runs scored, or outs recorded. Initially, this did not seem to be a big deal. However, the game progressed, innings passed, & runs were scored. As spectators, we were totally in the dark. We didn’t know who was winning or losing, what stage the game was in (inning), or even what the batter’s count was. The players were just as ignorant about the status of the game as we were because they depended upon the scoreboard as much as we did. Where was the scorekeeper?

How many small businesses are run without a scorekeeper? I believe that there are many. Employees work hard, just like the baseball players, never knowing the results of their efforts. Just as it doesn’t make sense for the baseball scorekeeper to only keep score for himself, it also doesn’t make sense for the business owner to keep his own score and not share the results with his key stakeholders.

Designer

I often share the story of a sculling coach whose team was unable to win any races until he took the time to lift the racing boat out of the water and discovered that the boat had a fatal design flaw. I believe that it is the role of the CEO to oversee the design of his/her business and than make sure that periodically that design is reviewed to make sure it is still working.

Michael Gerber, author of the best-selling book The E Myth, suggests that while designing our business we should assume that it is the first of ten thousand (10,000) locations. What does that mean? I interpret that to say that we should seek out a design that can be replicated and one that ensures the highest level of consistency of performance. Gerber also suggests that we should design our business as if we were designing a game. The game has rules. There must be a way to win the game. The game must be fun. We shouldn’t design a game for our employees that we are not prepared to play ourselves.

Chief Fun Officer (CFO)

Have you ever seen a business that was having fun that wasn’t also very successful? I believe that the two go hand in hand and that ultimately the CEO is responsible for making that happen. Let me be clear: I do not believe that the CEO should do this at the expense of his ability to lead. The CEO does not need to also be the CEY…Chief Executive Yuckster; responsible for making everyone laugh.

The CEO should make sure that employees have the opportunity for fun as it contributes to their performance. Examples of this might be celebrations (birthdays, anniversaries, etc), toys in the workplace (ping-pong, foosball etc.), or just looking for opportunities to be light-hearted. Laughter or even a smile can do wonders in a high stress/high performance work environment.

Storyteller

Leadership guru and Vistage speaker, Don Scminke, shared a leadership model with one of my groups that really made sense to me and my members. He suggested that the results we seek from our employees are a direct result of their work behavior. Their behavior is driven by their beliefs. Their beliefs are a result of the “story”. What story you ask? Our story. The story of your business. There exists a story within every business. Sometimes more than one. The story might be a positive one, thus resulting in great organizational results. Or the story may one of doom and gloom, and hence, performance suffers.

I believe that the CEO is responsible for developing the right story for their business and then communicating that story at every opportunity. In fact, each CEO should have three stories to tell at any given moment: a story about the past, one about the current situation of the business, and maybe most importantly, a story about the future. Consider this, as a young child; how did we learn about life? Most of us did through stories. Not just stories from books, but also stories from our parents, our grandparents, and our friends. At an early age, those stories most certainly impacted our behavior and most likely still impact our lives as adults. Stories are very powerful communication tools…

Race Car Driver

I believe that so much of what a successful CEO does today is managing velocity. Customers want everything faster. The pace of business today is much quicker than ever before. Hence, the CEO needs to be able to accelerate his/her business accordingly. Vistage speaker Ole Carlsson suggests that “the CEO must have his hand on the gear shift at all times prepared to up shift or downshift at any given moment”.

Likewise, the CEO must know when to pull his car over for a quick pit stop when necessary. That’s time to fuel up (cash infusion), check the tires (employee performance reviews or 121 meetings) and check under the hood (planning meeting). One speaker said recently that “changing a business is like changing a flat tire on a car…doing 60 miles an hour”. Not even a racecar driver would attempt that feat.

What have I left out? I’m sure there are several more traditional CEO roles that you find yourself in at times. Which role are you most comfortable in? Which role are you most uncomfortable in? What role is most needed in your organization today? Sometimes it’s better to be asking the right questions than always looking for more answers.