7 Traits of Successful Leaders

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All business leaders are not alike. There are many different leadership styles, all of which can be successful. However, if you take a handful of department heads with unique management styles, and you will see very similar traits in all of them.

The seven traits that are common to most successful business leaders include the following:

  1. Authenticity.  People can sense authenticity and authenticity is directly related to trust. Employees are much more likely to work hard for someone who is the “real thing.” True leaders stay true to their values regardless of the pressure that they are under to act otherwise. They are honest with themselves and others, and take responsibility for their mistakes.
  2. Resilience.  There will always be challenges in work and home life — what’s important is how one responds to the challenges. A great leader not only faces challenges head on, but also grows stronger as a result.
  3. Ability to delegate. Delegating is difficult for many leaders, but it’s important. Leaders who are good at delegating show employees that they have trust in them and have confidence in them. Delegating promotes learning and growth in employees.
  4. Empathy.  Empathy can make the difference between good and bad leaders. Being able to put yourself in someone else’s place is a skill that many managers or top executives lack. A leader who shows empathy toward direct reports is more likely to be viewed as a better performer by “higher ups.” People will work hard for and appreciate an empathetic leader who demonstrates compassion.
  5. Excellent communication.  This one seems obvious but can sometimes be overlooked. This means communicating with a variety of people in a variety of ways, including social media, text, phone calls, Zoom meetings, email and face-to-face. Don’t forget that active listening is just as important as talking. Listening to concerns, asking for feedback, and showing appreciation all play vital roles in how a leader is viewed. Communication is also not always verbal, but seeing non-verbal cues is a quality in an effective leader. The quality of excellent communication directly correlates to the success of a business.
  6. Honesty. It’s often hard to speak up in the workplace, especially to executives, but it’s a trait that is essential to a thriving business. It’s easy for resentment to build and gossip to begin when employees don’t feel comfortable sharing ideas and opinions. Good leaders have the courage to be honest and demonstrate the ability to discuss difficult topics. Leaders intentionally create an environment that encourages employees to do the same.
  7. Respectful.  People who feel like their boss respects them work much harder to meet goals than those who don’t. Respect motivates people to trust others and to work hard to meet and exceed expectations. Employees who have the respect of a manager, also have a sense of purpose and feel valued by their company. A lack of respect can oftentimes lead to a lack of motivation and mediocre work.

What traits are your strengths?  Where are you not as strong?  Having these traits as part of your leadership team will help set the tone at your business and its course of success.

Mastermind is the Name of the Game

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What is a mastermind group? This timeless concept is explained by Napoleon Hill in his books published in the 1920s and ’30s, The Law of Success and Think and Grow Rich.

Some mastermind groups are informal with 2-3 people and other groups are more formally organized, such as organizations like Vistage (www.Vistage.com), YPO (www.YPO.org), or View From the Top (www.viewfromthetop.com).   More formal mastermind groups consist of approximately 8-12 peers who meet on a regular basis (weekly or monthly) either in-person or via Zoom. Members pay monthly dues, and their fee often covers in-person speaker(s), activities, and/or retreats.

CEO & Co-Founder of Sustainable Investment Group (www.sigearth.com), Charlie Chichetti, has belonged to a 10-person mastermind group, Iron Sharpens Iron (“ISI”) as part of the View From the Top, for the past six years. Chichetti says the strength of a group lies in the diverse personal and business experiences of its members. Participants share best practices and hold each other accountable for tackling problems and meeting goals. Each member takes a turn in the “hot seat,” while the rest of the group brainstorms strategies and solutions to aid them in facing their challenges head on. A successful mastermind group enhances its members’ business AND personal lives.

Make no mistake, these formal groups like Vistage and ISI are not laid-back clubs.  Attendance and participation are  required. Members are expected to present problems, as well as provide feedback. The group devises a method of holding members accountable for following through, which keeps everyone focused and on track.

Charlie Chichetti offers the following guidelines to create an efficient and productive mastermind group:

  • Meetings are not the time to multi-task; they should be structured and begin and end on time.
  • Be present – both physically and mentally.
  • Members should come with a giving—as opposed to taking—mindset.
  • Include a mix of members, including “solopreneurs,” people from small- to large-size businesses and from different industries.

Trace Blackmore, owner of Blackmore Enterprises (www.blackmore-enterprises.com), has been part of a mastermind group for the past 10 years. He currently facilitates a mastermind group, Rising Tide (www.scalinguph2o.com/mastermind), and is a firm believer that learning from others’ mistakes and successes is one of the best tools for good decision making. Like Chichetti, Blackmore contends that the structure of mastermind groups is key to their success. He provided the following guidance to anyone who is part of a mastermind group, or is considering joining one:

  • All devices should be on silent mode during the meetings.
  • Progress is expected every week and a group may choose to offer consequences for members who come unprepared.
  • Before deciding to join a mastermind group, be sure you have the time, energy, and desire to make it a priority.
  • Each meeting should start by celebrating wins. Support and accolades are integral to keeping members motivated.
  • Ask questions! Questions help people think and look at circumstances from different perspectives and keep people from jumping to conclusions until they have all the information.
  • Members should be honest, while doing so in a tactful way. A book titled Fierce Conversations by Susan Scott is a good resource.
  • Individual goals and plans should be clearly verbalized to the group and should include deadlines for completion. This keeps people focused and on track.
  • What happens in mastermind stays in mastermind. Like all of life, business and personal events overlap, and problems and solutions are often of a personal nature.

Now you are officially aware of the who, what, when, where, and why and of mastermind groups. The benefits— accountability, strategy development, and healthy business and personal habits—are invaluable. Perhaps you will think it over and decide that membership is right for you.

As a member of a mastermind group for 10+ years now, I’m happy to advise you if you are thinking of joining one.   Feel free to contact me to discuss.

The Positive Power of a Flexible Workplace

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Employers, employees and studies say remote working in many instances can result in more productivity. The past two years guarantee that an increase in remote working will be a permanent result of COVID-19.

When people work from home, they have more control over their time and working environment. Employees work when they are most productive, which is not always regular business hours. People who work from home tend to dress comfortably and can fit more exercise and sleep into their schedules.

Traditionally, extra sleep and comfy attire for staff are not high on the list of employer goals. In fact, it may seem like these factors are counterproductive. But many employers say remote work has had a direct and positive result on business. Employees are happier, healthier (more sleep and exercise), take fewer sick days and accomplish more than those who spend the entirety of their work hours in an office.  Communication by text, email, Zoom and phone is proving to be more efficient as people focus more intently on their time management with these channels.

Call center employees, for example, take more calls when they work remotely, in part due to less noise and generally fewer distractions at home (apart from slightly distracting unsupervised toddlers), as opposed to a busy office.

Job satisfaction tends to increase without a daily commute. There is the appeal of a commute-free lifestyle. Statistics show that traditional commuters suffer from high blood pressure, high blood sugar and high cholesterol, more often than those who commute from the kitchen to the office down the hall. Increased anxiety is also associated with a commuter lifestyle.

People value a remote workplace option and may opt to take a pay cut for a job that offers it.  Having the flexibility to work even with a hybrid model of home office and work office environments can add a dimension to a job that makes it attractive.  The greater acceptance of a work-from-home option has opened the opportunity to reduce geographic limitations when recruiting.  Hiring employees is not cheap and a high rate of employee retention helps both overall morale and the bottom line.

Pandemic-life has proven that working remotely, at least part of the time, is feasible and profitable. Businesses can use remote working to their advantage to pivot their company and meet the demands of a new reality.

The Art of Attracting Outstanding Employees

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We’ve all had those absolutely outstanding employees:  well-qualified, quick to learn company operations and culture, exhibit great attitudes. They do what they say they will do, on time and with high quality.

Sometimes it can feel like we just fall into this type of employee. But there are ways to make the “fall” more likely. And since a company is only as good as its employees, attracting outstanding prospective employees is worth the effort.

There are many ways to attract and find great employees. The following are some I have found effective.  Try them out to create an ideal applicant pool.

  1. Go where the best go. Use events – even online – to observe and identify qualified people. Join relevant associations, talk with your customers, look on LinkedIn or other social media sites. Approach potential candidates with appreciation and ideas.
  2. Align your hiring process with your company’s culture and vision. This may seem obvious, however, the saying goes “hire for attitude, train for skills” is important. If the person does not have the traits that align with your culture and the norms you expect of all employees, then no amount of skill can make up the difference.
  3. Hire a good recruiter or staffing agency. Recruiters often follow people through their careers and will know when people are thinking about changing companies – giving you early access to the best candidates.
  4. Participate in the community. Sponsor a nonprofit or charity event. Offer scholarships or internships to local students.
  5. Write a realistic and detailed job description. Include job title, salary range based on seniority, and responsibilities. Try to tell a story about the company so people will get an idea of the work environment and company goals.
  6. Establish relationships with trade schools, colleges, and universities. It’s a win/win for companies who want access to the best candidates entering the workforce and schools who want outstanding career services programs.
  7. Foster a positive, modern, environmentally-responsible, and attractive workspace – wherever it might be. During these days when many desk employees are working from home, that might mean investing in fresh collaboration software, encouraging a daily stretch break, or offering perks like a small home office stipend or shipping an oxygen-releasing houseplant to each employee. For employees going into the office, give some thought to amenities like access to healthy, free snacks and coffee, relaxation areas, and ergonomically correct furniture.
  8. Offer the best benefits you can afford. Many companies use their benefit offering to attract and retain their employees. This could include paid vacation and sick time, mental health days, flexible work times, job-sharing, work-from-home, 401k, profit sharing, casual days, health, life, disability, dental and vision insurance, and tax-free health spending accounts to name a few. Paid gym memberships, parental leave, and student loan and tuition assistance are also gaining popularity.
  9. Ask your highest-performing employees for referrals – because like attracts like. They have first-hand knowledge of your business, plus networks of similarly-talented friends and business contacts. Hiring employee referrals can help build morale and be an opportunity to offer a referral bonus.

This list may seem overwhelming, but there’s no need to tackle them all at once. Test one or two at a time to see which resonate with your business, industry, and the roles you hire. I expect you’ll discover happier, more effective employees – and outstanding candidates.

It’s Decision Time

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The average adult makes about 35,000 decisions a day. Sounds like a lot, doesn’t it?

According to Psychology Today it’s not. And if you think about it, it makes sense: people make many decisions without thinking of them as decisions. (Which pen do I take out of the pen holder? Do I have time to review the report before the meeting?) With all of these opportunities to change the course of our day, our career, our life, it’s a good idea to explore ways to improve decision-making.

The results of a study published in the journal Cognition indicate that not all times of day are created equal when it comes to making decisions. The study tracked 184 chess players who made about 40 “complex human thinking decisions” during a 3- to 15-minute chess game. The results are interesting.

To summarize, study subjects made the decisions most favorable to their game when they were playing between the hours of 8 a.m. and 1 p.m. After 1 p.m., players made decisions more quickly (presumably they were in a post-lunch slump or tiring as the day was progressing), and their decisions were less favorable to their game.

Bottom line: make important decisions in the morning. Sort of. When you sleep and when you get up matters too. If you are a morning person—you know, the early to bed, early to rise type—then your best decision-making time is the morning. But if you’re a night person, then your “morning” is during the five hours after you rise for the day. So, relax: if you don’t get out of bed until 9 or 10 a.m. , then you haven’t missed your prime decision-making hours.

A lifehacker.com article by Adam Dachis also supports the morning person/night owl concept, recommending that people identify when they’re most able to make good decisions and then resolve to make important decisions during that span only. Creativity coach Mark McGuinness advises people not to worry too much about little decisions, because they generally don’t have a long-term impact on your life.  For example, what clothes you wear on a particular day or what you eat for dinner doesn’t change the direction of your life. (Although, should you wear neon orange cowboy boots with your suit and purple fedora to the office, the boss may question your judgment.)

McGuinness also recommends weighing the pros and cons before making big decisions. And don’t ignore your gut. He says it’s best to take more time (if possible) to land on a decision when your logical side disagrees with your instincts. In other words, intuition matters.

Should you follow this advice? Determine the best time, and then think it over. It’s your decision.

What’s Your Plan for Avoiding Burnout?

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by Michael Iverson

Working closely with entrepreneurs, I think I can say that most enjoy their work to a high degree.  As a group, they are upbeat and passionate about business.  Most control their workplace environments, their hours of operation, and the people who work with them.  All of those things make coming to work a lot more pleasant.

At the same time, many entrepreneurs have the capacity to be obsessive.  The very trait that drives so many of them to succeed can also lead them to work extremely long hours and experience bouts of anxiety.  The combination of long hours and anxiety is a recipe for burnout.

Caution: Burnout Ahead

Several years ago, I came across an Inc. magazine article entitled Ten Signs You’re Headed for Burnout.  Here are a few of the warning signs that are most common among business owners.

  • Unhealthy lifestyle choices – You can’t seem to find the time and energy to take care of yourself. You may eat too much or too little, choose unhealthy foods, stop exercising, or rely on alcohol to relieve stress.
  • Inability to stop thinking about work – Thinking about work during your free time is normal, unless your thoughts about work are accompanied by a feeling of dread.
  • Perpetual exhaustion – A feeling that you just can’t get enough sleep. In fact, you wake up feeling exhausted.  The exhaustion can be both physical and emotional.
  • Loss of enjoyment in daily activities – You once enjoyed going to work, but now you are apathetic or fearful of it.

Anyone experiencing one or more of these signs is either already suffering from burnout, or it’s just around the corner.

Strategies to Beat Burnout

To beat burnout, you need to eliminate the factors that contribute to it. Sounds simple enough, right?  But, it’s not.  The tendencies that brought you to the brink of burnout must be confronted, and that may cause you some discomfort in the near term.

Relinquish Some Measure of Control – This is a tough one for most business owners.  The need to be on top of all aspects of the business is part of your DNA.  Are you able to give up a little control for the sake of your well-being?

Short-term:  Make an honest assessment (perhaps with the help of an objective outsider) of how you can offload one significant responsibility to a member of your team.  As an example, one self-contained project that makes sense for some owners to offload is implementing a new technology to improve the business.  If you understand the benefits to be gained, is it necessary to be involved in the nuts and bolts of implementation?  Why not assign that responsibility to a capable staff member or business partner?

Long-term:  On the TV show Star Trek, the captain’s most reliable surrogate was referred to as Number Two. Owners who develop a reliable Number Two at work are able to achieve a better sense of work/life blend.

Make Your Health a Top Priority – If it’s not already a priority, commit to this important lifestyle change.  Daily exercise is the best way to relieve stress.  Ask your doctor about the right exercise for you and work it into your daily routine.  Meet with a dietician to address easy ways to avoid bad eating habits.  Eliminate electronic devices from your bedtime routine as a way to improve your sleep.

Take Time Away – It is absolutely essential to get away from work to sharpen your most important tools – your mind and body.  Steven Covey author of the book “Seven Habits of Highly Effective People” refers to it as sharpening the saw.  Refresh both by giving yourself some well-deserved rest.  Experience something new and out-of-the-ordinary as a way to renew your spirit of adventure.  Take vacation if that’s all you can manage at the moment.  If you are in position to take more time, consider a short leave of absence.

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.

Building Business Value Now for Successful Exit Later

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Managing a growing and thriving business can require 60‐hour weeks. The day-to-day events can consume even the best‐organized CEOs.

As a result, the establishment of an exit strategy is often postponed. Business owners inherently believe there is plenty of time later to firm up an exit strategy.

The problem with this thinking is that without a strategy, improper decisions can be made that greatly reduce value or eliminate exit strategy options.

Today, many companies are built to sell. Owners with this strategy continually focus on factors to enhance the exit process. The best advice is to ensure you have a balance between the “here and now,” and the ”there and later.” Ask yourself, what is my dream for this business, and if I reach that dream, what then? How will my family and I eventually benefit from these years of hard work and risk?

Your options include, leaving the business to family members, going public, selling it to employees, or to a private equity group or strategic corporate acquirer. A natural tendency in a young business is to have a very short time horizon ‐ next payroll, next tax payment, next customer, and next month. But to realize a successful (and earlier) exit, the business owner needs to keep his or her eye on the ultimate disposition of the company.

If the ultimate goal is an initial public offering you have to do different things than if the goal is to sell a private company.

For example, a C corporation, which allows unlimited shareholders, is the appropriate form if you plan to go public, however the sale of a C corporation is more expensive from a tax standpoint compared to selling a sub‐S or limited liability corporation. With an end game in mind, your advisors will be much more effective in insuring you have the proper business structure.


Invest Time in Planning the Exit

Spend 20 minutes a day thinking about the exit. This time will produce more monetary value in the end and make earnings from anything else you would do with this time pale in comparison.  Wealth does not generally come from the earnings of the business, but upon the exit from the business.

What should you think about? Look from the outside in.  Determine who should eventually own your company and why. Take a buyer’s view of what will make the business more attractive from a  strategic standpoint.

  • Perhaps you should devote more resources to developing proprietary and unique products or methods.
  • Can you develop a brand? Branded companies are sold as a multiple of sales, rather than a multiple of earnings
  • Document and protect your technology.
  • Corner a particular market or niche and become a price leader.
  • Become recognized. Do you have a good media and public relations strategy?

Are your contracts and agreements written so they would provide value to a purchaser of your company? Often, language in contracts can be problematic for buyers and investors.


Understand Due Diligence Deal‐Breakers

The due diligence phase of a transaction is when all details of the business are inspected. In our experience, business owners often unwittingly make decisions today that are deal‐breakers tomorrow. They make decisions for expedience, based on here and now rather than there and later.

High on the list of due‐diligence deal‐breakers is any inordinate dependency on factors outside the owner’s control. These include too much revenue from one customer, too much risk from a sole supplier or too much dependence on technology controlled by outsiders.

Why would a buyer want your company if it is dependent on outside technology? The buyer would likely discount your value or worse yet, acquire the technology from the outsider just as you have.

The bottom line to maximizing value — and assuring a successful exit — is to own your own magic. At least have exclusivity on that magic.

Another area of concern during due diligence is long‐term agreements.  You may enter into seemingly insignificant agreements that become deal‐breakers. Examples that allow outsiders to “hold up” your transaction include lease, employment, licensing, loan and stockholder agreements.  Obviously, no one is recommending against entering into such agreements; just that you enter into them under terms that do not preclude a successful sale.

It may seem obvious to counsel business owners to avoid mistakes, but there are some that are perilously easy to make and unbearably tempting. The top among these is the temptation to dabble with a potential buyer.


Don’t Dabble. Your Company Is Either For Sale Or It Is Not.

The singing siren is an unsolicited buyer who allows you to “see what this baby is worth.” The risk is that the exploration will leak. . . to employees who will get nervous and bolt, to customers who will look to competitors, to competitors who will look to take both customers and employees.  Testing your value can severely reduce your value.

On the upside, when the time comes to exit—to turn your value into wealth—there are some must‐dos to keep in mind:

  • Insist on competition among suitors. True market value can only be determined by getting negotiated offers from different buyers with different motivations to own your company. We believe that the absence of competition means selling at a minimum 35 percent discount below market value.
  • Understand valuation as it applies to your business. Benchmarking may seem objective, but overall it tends to undervalue good companies.
  • Finally, do not make the mistake of overestimating your own ability to do the deal yourself. If you do, it means taking your eye off the ball of running the company, faking sincerity with competing suitors and still having trust with one at the end, and negotiating with someone who likely has superior skills and deal experience.

Build the value, keep your exit in mind, avoid devaluing mistakes and at the end your strategy will be a lucrative one.

Numbers Coach Establishes Financial Infrastructure for Start-Up

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SITUATION

BodyBlocks Nutrition Systems began their business launch in 2003.  The Founders were excited about their plans and the products that they would offer.  The Company received seed capital from friends and family to take the business from an idea on paper to a proof-of-concept.  The idea passed the feasibility study, and they were ready to raise the necessary capital to launch the business.

Body Blocks realized they needed a financial consultant who could take them from an idea to launch, and on to the next level as an emerging growth business. What did they need?

  • A comprehensive financial model designed to match their business strategy
  • Capital
  • Basic Financial Reporting
  • Administrative Infrastructure (financial, risk management, and human resource functions)

SOLUTION: Numbers Coach Financial Services

At the end of 2003, BodyBlocks hired the Numbers Coach “NC”) to help them in their financial leadership.  They did not have a need for a full-time CFO, but did need the financial expertise.  NC immediately designed a financial model so the company could begin the process of telling its “story” to potential investors, and raise the necessary capital to launch its products.  Within a few weeks the model was complete and ready for investor meetings.

At the same time NC began establishing infrastructure for the company finance and accounting functions.  A foundation was created so that costs were variable and fit the specific needs of an emerging growth company in the early stages of its evolution.  NC also advised Body Blocks on how to secure the right level of business insurance to protect company assets.

NC managed and designed the human resource functions, bringing together key HR resources to develop critical documents, formal personnel files, and policies.  Payroll solutions were implemented to ensure all taxes were reported in a timely manner.

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.