Lessons Learned From a Restaurant

by

Pals is a fast food restaurant located in Kingsport, Tennessee and was the first restaurant company to win the prestigious Malcolm Baldridge Quality Award.  Putting it in the company of companies like Ritz Carlton, and FedEx.  This small 26 location company has a crazy low turnover rate given the fast food industry.  For front line employees, it’s just 1/3 of the industry average and for its assistant managers it’s a meager 1.4%.  How do they do it?

 3 key ingredients

  • Hire for attitude and train for skill.

What Pals found out was if you got the attitude right with an employee, you could train them for the skills you need.  Attitude over skill any day.

  • Lots of opportunity for training and improvement.

Employees spend a lot of time on training and retraining.  They get certifications and opportunities to continue to learn.

  • Get serious about teaching.

The company has assembled a reading list of key books that an employee is expected to read.  And not all the books are on business but rather include some timeless classics such as The Prince by Machiavelli.

What is your secret sauce to hire and retain a great work force?

Mike

Leadership

by

I recently read a short article that addressed 5 interesting metrics to measure as you build your leadership skills.  The author, Verne Harnish, who wrote the book “Scaling Up” has these key measures that will help you grow the impact of your leadership.

  1. Initially when a business owner is starting out, it pays to say “yes” to a lot of opportunities to network and gain experiences.  However, as you get clear on your strategy, Verne recommends turning this upside down and aim for a ratio of 20-to-1 “no”.  Why?  So you can get laser focus on getting to the results that you want.
  2.  A “meet and greet” strategy with other influencers in your industry.  Set a goal of how many coffees, breakfasts or lunches to have so that you will gain knowledge from other leaders in your field
  3. Spend uninterrupted time “in the flow” for at least 90 minutes a day.  Put this on the calendar for every day.  If you don’t focus on your high priority items, they will not get done.
  4. Get input from lots of other brains that can help propel your company forward.  Get a brain trust or advisory team who have experience and wisdom that you want to obtain.
  5. Spend time thinking to let your best ideas incubate.  Even Ben Franklin took time devoted to learning each day.  Reading and thinking are a must for a leader.  As its been said “leaders are readers”.

Measure these leadership metrics on a regular basis and give yourself a chance to take your leadership skills to the next level.

Mike

5 Ideas for Becoming a Better Leader

by

I recently read a short article that addressed 5 interesting metrics to measure as you build your leadership skills.  The author, Verne Harnish, who wrote the book “Scaling Up” has these key measures that will help you grow the impact of your leadership.

1. Just say “No”. Initially when a business owner is starting out, it pays to say “yes” to a lot of opportunities to network and gain experiences.  However, as you get clear on your strategy, Verne recommends turning this upside down and aim for a ratio of 20-to-1 “No”.  Why?  So you can     get laser focused on getting to the results that you want.

2. Spend time with other leaders. Develop a “meet and greet” strategy with other     influencers in your industry.  Set a goal of how many coffees, breakfasts or lunches to have so that you will gain knowledge from other leaders in your field.

3. Put the highest priorities first. Spend uninterrupted time “in the flow” for at least 90 minutes a day.  Put this on the calendar for every day.  If you don’t focus on your high priority items, they will not
get done.

4. Use a sounding board. Get input from lots of other brains that can help propel your company forward.  Get a brain trust or advisory team who have experience and wisdom that you want to obtain.

5. Make space for thinking. Spend time thinking to let your best ideas incubate. Even Ben Franklin spent time devoted to learning each day.  Reading and thinking are a must for a leader.  As it’s been said “leaders are readers.”

Measure these leadership metrics on a regular basis and you’ll give yourself a chance to take your leadership skills to the next level.
  
Here’s to becoming great leaders! Mike

How to be Successful the Second Time Around

by

I recently read an article about a study conducted on over 65,000 Swedish earlier stage start-up companies and their owners who successfully exited one company and moved on to their next company.  It pointed out that the second time around for the entrepreneur was not always a success.     Most business owners after they exit from their business seem ready soon after to start another venture.  This includes business owners that transition to the buyer company, but find out that they can’t work for anyone else anymore.

The second business often under-performs compared to the first one.  Why?  There is no one reason why the same skills and leadership that got them a first successful company exit does not work the second time around.     In some cases, the entrepreneur fails to understand the significance of timing and those “make-or-break” moments where their intuition helped lead the first company to its success.  They sometimes forget or underestimate how much effort it takes and the chance events that got their first company the results needed to succeed.

So what are the ingredients for a happy exit?  It depends on the person; however, some common strategies included: The business owner visualizes what life looks like after exit.  They don’t wait for the exit to happen and then decide, rather they are proactive about it before exiting. Test driving the next venture prior to exiting the first one Setting clear goals, deadlines, and amount of capital that will be committed These are just a few of the ideas that can help a business owner avoid moving onto a second or third business venture that ends up disappointing.

Here’s to your next venture! Mike

Make Your Compliments Count

by

One of the best ways to brighten up someone’s day is to give them a compliment.  

However, not all compliments are equal.  In her article “The Secret to Giving a Compliment that Makes People Glow” by Mary Halton, she describes the 3 ingredients for a great compliment:

1.)  Use their name

  • Using someone’s name says you value them as a person

2.)  Compliment something specific

  • Instead of using a generic statement like “Good job,” be specific and say something like “Your singing took me back to my childhood when my family would sing around the campfire.”

3.)  Don’t praise and run out

  • After your compliment, ask a follow up question such as why they chose to sing that particular song

    Compliments can go a long way in building your relationships, so make them count.

Here’s to making it count!

Mike

Improving Group Event Conversations

by

I recently read an article in Inc magazine by Marcel Schwantes (click here to read) that focused on how too often we engage in small talk at our networking events or dinner parties and come away with a less than happy experience.  We use the typical questions, such as “What do you do?” or “Where do you live?”  instead of questions that can get you into more interesting and fulfilling conversations. 

Behavioral scientists Kristen Berman and Dan Ariely explored an interesting concept where they hosted a dinner party and handed guests given index cards with a question they had to use to start a conversation.  They found the participants came away much happier with their experience because it didn’t involve trivial small talk.

Another interesting concept the article pointed out was exemplified by Sean Bisceglia who hosted Jefferson-style dinners.  This format requires the whole table to share in just one conversation and not allow any side bar conversations, with small talk banned.

What questions could you do to help start a meaningful conversation?  Below are a few from the Inc magazine article that you may find interesting at your next networking event or dinner party:

  • What is your story?
  • What excites you right now?
  • What book has influenced you the most?
  • What book do you gift the most?
  • If you had the chance to meet one person you have not met yet, who would it be and why?
  • If you were stuck on a deserted island and you can have only three things, what would they be?
  • What was your favorite travel experience?

Cheers to having more interesting conversations!

Mike

The Top 5 Fears That Haunt CEOs

by

What keeps you up at night as a CEO or business owner?

I recently read an article by Tim Fulton, the founder of Small Business Matters, that outlined some common fears that a business owner or CEO worries over. 

Here are the Top 5:

  1. Losing a Key Employee
    Businesses are finding it increasingly difficult to find employees with the right fit for their organization.  Our population is aging and the number of workers coming up to fill slots for from retiring employees is getting difficult.  When a key employee leaves a company, they are usually not leaving for just the money, but more intrinsic issues.

    How do you avoid this possibility?  Tim recommends holding a meeting 30 days after hiring an employee and asking a simple question: “What does it take for you to stay?”  Research has shown that after about 30 days an employee may be considering leaving because they don’t see the company as a “fit.”
     
  2. Losing a Key Customer 
    It is difficult enough to acquire a customer, so when we lose one, especially an important one, it is both a financial and a psychological hit to the company.  Tim notes that too many companies devote resources to attracting new customers versus keeping existing ones. 

    One way to avoid this that Tim recommends is by using the Net Promoter Score (NPS).  I have actually used this in my business and it is always informative.  You ask one simple question to your customers: “On a scale of 1 – 10, what is the likelihood that you would refer a colleague to do business with us”?  If the answer is a 9 or 10, great!  If it’s less than 7, you may have a customer service and value proposition issue.
     
  3. Experiencing a Cyber Attack
    “Cybersecurity is a silent killer. It can shut you down like nothing else.” – Joe Galvin, Chief Research Officer, Vistage International

    Cyberattack is a relatively new fear for small business operators. In a recent Vistage survey, 62% of CEOs do not currently have an active cybersecurity strategy in place. Every day, small businesses hit by cyberattacks are losing data, cash, customer records, employee information, and employee/customer trust. 

    How to prevent this?  Tim recommends implementing a three-layered defense against cyberattacks including working with your IT services provider to implement cybersecurity, enforcing proper employee policies and procedures, and buying cyber insurance.
     
  4. Running Out of Cash
    When you run out of cash it’s game over!  One of my favorite quotes is by Hemingway when asked how he went bankrupt:  “Slowly, then all of the sudden.”  This can happen when you are not paying attention and monitoring your finances with forecasts to look forward.

    Tim recommends making sure to calculate your “working capital requirement” number.  This is a number that tells you how much cash you need on hand to run your business effectively.  In our Numbers NavigatorTMsoftware our clients get to know this number each month and why it’s so important to monitor.
     
  5. Lack of an Exit Strategy
    We all exit our business, it’s just a matter of how we want to go out:  Gracefully or with a big bang that could hurt your family, employees, and other stakeholders.  Every business should plan for succession and exit on a regular basis.  The decisions you make today will impact how you can exit down the road.

    Tim recommends a book authored by Patrick Ungashick titled “Dancing in the End Zone.”  I have read the book and also highly recommend it.  Ungashick has outlined some key questions that you need to ask yourself and the book goes on to help you outline what could be the options for you and your team.

These are just a few fears that can keep a CEO and business owner up at night with worry.  However, by putting the recommended strategies into place, you can alleviate some of these fears.

Cheers to a good night’s rest after you implement these strategies!

Mike

Which Style of Leader Are You?

by

I recently read a fascinating article in Inc magazine that outlined 13 leadership styles of corporate leaders.  The authors outlined each type and what traits are typical.  While we all have our own unique leadership style, some styles resonate with us while others do not. 

Do you recognize your leadership style(s) from the list below? 

  1. Adaptive
    This leader rises above the noise and looks at the changing landscape to interpret how best to adjust the business to the challenges.
  2. Emotionally intelligent
    These are leaders who are experts with relationships and have strong influencing skills.  They are aware of their feelings and those of others, too.
  3. Charismatic
    These leaders are the motivators with a charismatic authority about them.  Think of Jack Welch and Theodore Roosevelt.  They can end up with a cult-like following
  4. Authentic
    This trait could be summed up as passion, but with integrity.  These leaders are consistent and open.
  5. Level 5
    This leadership style comes from the book Good to Great by Jim Collins, who describes Level 5 leaders as those with a strong pursuit of goals with humility.  They give credit where credit is due, and don’t have oversized egos that desire praise for themselves.
  6. Mindful
    This leader is a good listener and probes with questions to help address their curiosity.  They ask smart questions to help them be better learners and leaders.
  7. Narcissistic
    This is the leader who does not listen, does not learn, and does not teach.  They also have an obsessive vision that tends to pull their followers along.  If they have a strong second-in-command person who can offset their “less than nice” traits, they can be effective company builders.
  8. No-Excuse
    Think of this leader as a military commander who wants no excuses about why a mission didn’t work out.  These leaders display mental toughness and make decisions quickly with limited information.  This leader will typically debrief on why a situation didn’t go right, not to blame but to try and learn from it and not repeat it
  9. Resonant
    This is the enthusiastic leader who can rev up their team to push through challenges.  They have a contagious style that can get ordinary team members to do extraordinary things.
  10. Servant
    Servant leadership displays the person’s desire to serve employees, customers, and other stakeholders.  Based on Biblical principles of “wash each other’s feet,” servant leadership can result in workplaces you see on lists titled “Best-places-to-work.”
  11. Storytelling
    This leader evokes emotion with employees through narratives to drive the vision of a company.  This style tends to be prevalent with entrepreneurs who need to tell a story about their company and what they want to accomplish.  They can provide a picture for the minds of their employees.
  12. Strengths-based
    This leader invests in the talents of their employees.  They want them to thrive in a manner that can bring out the best of their skills and how it fits with the company’s mission.
  13. Tribal
    Tribes are led by people who understand the cultural norms and values of the group.  This leader has the ability to unite the team around shared beliefs that are needed to make the company successful.

Leadership styles come in all shapes and sizes.  Some people display traits in multiple styles and are not just “one size fits all” approach.  However, it’s likely that one style plays a larger role with a person.  Which one are you?  Cheers to finding out your leadership style and how you can best use it to drive your company’s vision.

Cheers to identifying and enhancing your leadership style!

Mike

Does Your Business Have the “Disease of More?”

by

Have you met the person who is always seeking the next “growth opportunity?”  The person who is never satisfied with their results or their company’s results? 

There is a concept in the sports world known as the “Disease of More.”  This phrase was coined by Pat Riley.  Pat was the famous basketball coach of the Los Angeles Lakers and led them to six championships.  He said the “Disease of More” was often what explained why a championship team was dethroned from its winning ways.

After winning the championship, the members of the team would want “more”:  more money, more endorsements, more accolades, more play time, more attention. . . more, more, more.  Consequently, this team of cohesive players broke down and became an entitled toxic mess that ended up failing.

This reminds me of companies or leaders of companies who feel that you either “grow” (i.e., get more) or “die.”  My feeling has been that if a company strives to be the best at what it does, then the “more” or growth will come, and it’s not forced.  The book Small Giants by Bo Burlingham outlines companies that chose to be great instead of big.  The irony is some of the companies outlined in the book do continue to grow larger, but they do so in very intentional ways and not simply for the sake of wanting “more.” 

Do you or a company you know have the Disease of More?  Your cure may be the tradeoff between building a great company or a big company.

Cheers to growing a great business!
Mike

Should You Ever Stop Learning?

by

As kids are heading back to school (at least here in Georgia), it brings to mind the question of “Are you ever too old to stop learning?”  The answer, of course, is no.  The notion that the CEO of a business should “know all” is a relic of the past.  Given the rapid pace of change in today’s digital world, the CEO needs to be a person who embraces the ideal of lifelong learning and realizes that they “don’t know what they don’t know.” 

Some of the best leaders consider themselves constantly learning and they never want to stop learning.  This should not just resonate at the top level of leadership but also throughout an organization.  Creating this type of environment is one of the qualities that sets “great” companies apart from “good” companies, according to Jim Collins’ classic Good to Great.

How do you set up an environment to model lifelong learning?  One method I have seen successfully implemented is the CEO who models the behavior of self-improvement.  I have met leaders who are at the pinnacle of their careers, and they have engaged with seeking out mentors and coaches to improve themselves.  In 2015, Harvard Business Review did a study of 45 CEOs with formal mentoring relationships and found that through these relationships their company performed better financially.  They also made better decisions and an demonstrated an improved ability to meet the needs of its stakeholders.

The mentor or coach is not necessarily senior to you and can run across generational divides for the person to gain insights from a wide range of perspectives.  I have been a part of a business roundtable, Vistage, for over 15 years and engage monthly with other local peers who are both senior and junior to me.  I learn from all of them because they help me understand issues from many different perspectives.  I have also recently engaged a personal business coach to help me better understand my blind spots and where I need to focus to improve my skills.

These relationships helps facilitate the exchange of ideas and information that I may not otherwise get exposed to.  I know of companies who hold regular offsite learning meetings with the sole purpose of providing their teams with information that helps them improve their leadership.

There is also no substitute for accountability.  Meeting on a regular basis with a coach, mentor, or mastermind group that holds you accountable can make the difference between success or failure both professionally and personally.

Cheers to a lifetime of learning!
Mike

How Is Your 2nd Half Shaping Up?

by

I read a book a while back titled Halftime by Bob Buford.  It spoke to me because at the time I was turning 50, and the book outlined the difference between the first half of our life versus the second half. 

Now that I am further along in my second half, I find myself reading articles about how to stay vibrant physically and mentally.  It’s been said that “health equals wealth” and my intention is to be on the journey with continued health as a focus. 

Below are six habits that resonated with me from a recent article on this topic.

Mindset of Abundance

Worrying about money at any age is not fun.  I sure don’t want to worry about it in my older years.  The abundant mindset was a game changer for me, and it not only included financial, but also spiritual, work, and relationships.  The way I practice this comes with making sure any business opportunity is sourced with the right resource.  If a referral comes to me, but it’s not quite the right fit or maybe my bandwidth is such that I couldn’t meet the client needs properly, then I actively help them find the right resource.  Even if that means referring them to a competitor.  It’s the “pay it forward mentality” and the idea that there is an abundance of work out there for everyone, and what comes around goes around.

Take Care of Your Spirit

Do you ever feel not present, or your mind is racing all over the place?  Or someone asks you a question, but you really didn’t hear it, and you must ask them to repeat it again?  I have been working on a practice where I focus on my “active listening” skills and intentional mindful exercises to be present.  It is not easy, but in today’s fast paced world, it is necessary.  As I age, I am realizing that spiritual fitness is just as important as physical fitness.

Goals

I have generally had goals most of my life.  Not always written down, but goals that helped me go to where I wanted to take my career.  Eventually as I got older, I began to write down my goals and reviewing intermittently during the year.  I have kept copies for the past 15 years and it’s amazing what I accomplished towards the life that I wanted to lead.  The goals kept me focused, engaged, and motivated.  Where I needed to pivot, I did.  Some goals changed or were dropped, but I had a goal because I wanted to be “intentional” with my life and business.

Take Care Physically

When I was young, I took a lot for granted and didn’t feel that I would ever wear out.  I pushed myself physically as an athlete.  Well, I did better than some…my weight is still good, nutrition is on solid ground (except for the chocolate that I enjoy), and my strength is rebounding.  Get a good night sleep.  It is the most underrated aspect of recovery that is necessary for us to continue running the marathon of life.

Do Work You Enjoy

Enjoying what you do as a profession nourishes the body and your spirit.  Long-term health and happiness are a function of a healthy and satisfied mind, and work that fulfills these attributes will give you inner satisfaction.

Choose Your Relationships Wisely

The emotions of others are contagious.  Be mindful of who you hang out with because as Jim Rohn once said, “You are the 5 people you hang around the most with.”  If you are not hanging around with people who you want to emulate, then time for a reset.

Cheers to your 2nd half!

Mike

What does your second half look like?

by

I read a book a while back titled Halftime by Bob Buford. It spoke to me because at the time I was turning 50, and the book outlined the difference between the first half of our life versus the second half.

Now that I am further along in my second half, I find myself reading articles about how to stay vibrant physically and mentally. It’s been said that “health equals wealth” and my intention is to be on the journey with continued health as a focus.

Below are six habits that resonated with me from a recent article on this topic:

  1. Mindset of Abundance
    Worrying about money at any age is not fun. I sure don’t want to worry about it in my older years. The abundant mindset was a game changer for me, and it not only included financial, but also spiritual, work, and relationships. The way I practice this comes with making sure any business opportunity is sourced with the right resource. If a referral comes to me, but it’s not quite the right fit or maybe my bandwidth is such that I couldn’t meet the client needs properly, then I actively help them find a better resource. Even if that means referring them to a competitor. It’s the “Pay it forward” mentality and the idea that there is an abundance of work out there for everyone, and what comes around goes around.
  2. Take Care of Your Spirit
    Do you ever feel not present, or your mind is racing all over the place? Or someone asks you a question, but you really didn’t hear it, and you must ask them to repeat it again? I have been working on a practice where I focus on my “active listening” skills and intentional mindfulness exercises to be present. It is not easy, but in today’s fast paced world, it is necessary. As I age, I am realizing that spiritual fitness is just as important as physical fitness.
  3. Goals
    I have generally had goals most of my life. Not always written down, but goals that helped me go to where I wanted to take my career. Eventually as I got older, I began to write down my goals and reviewing intermittently during the year. I have kept copies for the past 15 years and it’s amazing what I accomplished towards the life that I wanted to lead. The goals kept me focused, engaged, and motivated. Where I needed to pivot, I did. Some goals changed or were dropped, but I had a goal because I wanted to be “intentional” with my life and business.
  4. Take Care Physically
    When I was young, I took a lot for granted and didn’t feel that I would ever wear out. I pushed myself physically as an athlete. Well, I did better than some…my weight is still good, nutrition is on solid ground (except for the chocolate that I enjoy), and my strength is rebounding. Get a good night sleep. It is the most underrated aspect of recovery that is necessary for us to continue running the marathon of life.
  5. Do Work You Enjoy
    Enjoying what you do as a profession nourishes the body and your spirit. Long-term health and happiness are a function of a healthy and satisfied mind, and work that fulfills these attributes will give you inner satisfaction.
  6. Choose Your Relationships Wisely
    The emotions of others are contagious. Be mindful of who you hang out with because as Jim Rohn once said, “You are the five people you hang around the most with.” If you are not hanging around with people who you want to emulate, then time for a reset.

Cheers to your 2nd half!