In the early 1960’s when many were concerned about the effects of TV on the family and communication, one man envisaged a communication system that would within 30 years radically change the way we communicate. The man was JCR Licklider and his science paper titled “Man – Computer Symbiosis” – the idea was a global communication network which eventually became the Internet. It was the Internet which gave birth to email and the World Wide Web.
These days, in both our business and social lives, one of the most common phrases we hear is “how technology has changed the way we communicate”. And if the success of Bill Gates and the computer industry is our guide – then the world has taken to the new age in communication with relish. However, I believe that there is a huge profit both in financial and efficiency terms if we move the clock back a little in our business communications.
I would like to go back say 20 business years when many people actually picked up a phone or went to a meeting rather than send an email into the ether with the belief that its recipient would first of all be able to receive it and then understand the many nuances often disguised by our new “4get” style of English.
Recently I was in an office where it was common practise to send emails containing rather simple questions from one person to another when just 2 metres of open space separated them. I have also worked with companies determined to allow their staff to work in isolation – often at home and depend again on email communication.
The fact is that we are losing the art and the benefits of face to face communication. As part of our coaching program I always hold a focus group meeting with team members. One only has to ask them to talk about their role or how the company could improve – and the flood gates open. Issues that simply need discussion and solutions that have built up in some companies appear to be huge blockages in the success of the business.
I always ask a new client for a schedule of meetings that are held amongst team members. So often I find that there are none or perhaps we might find an annual meeting and infrequent reviews – not attended by senior management. Senior partner meetings can be more common – but below that level or between these two levels there is a paucity of face to face communication – or simple conversation. How can we resolve problems, remove blockages, increase efficiency, grasp key team issues via emails? How can we enthuse or motivate our people if we don’t meet with them or even empower them to meet and work through issues that need to be resolved?
I am equally amazed at the lack of communication – either face to face or by phone with clients.
So now let’s get positive about communication.
Recently I read an article about Tony Ferguson, who in the late 1990’s was at the helm of BT Australia when it was being off loaded by its parent company. These were tough times for Ferguson and the employees of BT. Yet in the article he said that he was most proud of his ability to communicate the issues to his 3000 strong staff.
If it can be done at that level why don’t many small to medium, professional practices maintain good communication practises?
Let us start with what are the most effective forms of communication. I put them in the following order with number one being the best by far – 1) Face-to-face 2) Telephone 3) Email or in written form generally. From there it is easy to understand that we need meetings with our staff and clients if we are to use the most effective form of communication.
Let’s start by reviewing our meeting schedule or implement a meeting schedule which will allow for a number of levels of staff and management input. As leaders we must talk to our team. I regularly meet owners who are simply afraid to openly discuss issues that affect staff, “it will just get negative” or “I don’t know what I should be talking about”. Like many things in life – the reality is that we need to try it. And perhaps in some circumstances – simply sharing your vision for the company, the people in it and asking for positive thoughts and ideas – will get the ball rolling.
Of course meetings need to be the subject of good practice. They should have a focus – operations, work in progress, or new business development. They should be held at regular times to allow for preparation. Those attending should be the ones who are involved with or are responsible for the matters discussed.
Here is a short list of thoughts that might help:-
• Frequent reviews on personal performance
• Cover daily, weekly and monthly key operational & business development aspects
• Quarterly meeting to set 90 day goals
• Six monthly isolation meeting to review & reset strategic targets with senior management
• Annual strategy planning meeting to set the platform for the year ahead
• Have a focused agenda for each meeting with a specific time limit with a start and an end
• Make sure that anyone raising a problem also offers a solution before the meeting discusses the matter.
• As a leader – make sure you listen and absorb what is being said. Misunderstanding or defensive or aggressive reactions will soon quell the spirit of openness you want to achieve.
• Separately, ask yourself – “am I meeting with my clients regularly enough asking the right questions and listening to them for their wants, needs and feedback on our performance?”
Also think about other levels of communication like social events that will provide extra dimensions of fun and to enhance team spirit.
The more communication & meetings you have the more your business will grow and equally the more your business grows the more communication & meetings you should have.
When JCR LIcklider formulated his ideas for global communication he helped change the world. When you develop a positive meeting schedule and open the path of communication you will unleash a whole new form of energy in your business. You will find road blocks to efficiency and profit will be cleared. All it takes is for you to open your diary (book or electronic) and get the ball rolling.
Next month I want to talk to you about Brand Advantage and how this subtle but significantly important marketing concept can add enormous value to the equity and growth of your business.
Until then seize the day and have a great month.
Tuesday, November 20, 2007
Tuesday, October 23, 2007
Creating An Ideal Team
I frequently ask professionals what they consider to be the difference between a great team member and a good team member, or in short, your ideal.
These are some free flowing answers that I am told:
Do whatever it takes to get the job done
Really listen to the needs of the owner
Take pride in their work, and show a personal commitment to quality
Are eager to learn as much as they can about the business they are in
Get involved and don’t just stick to their assigned role
Learn to understand and think like the owner so they can represent them when they are not there.
Are always looking for ways to make things easier
Anticipate, and don’t wait to be told what to do. They show initiative
Reach out for responsibility
Are team players
Can be trusted with confidence
Are honest, trustworthy and loyal
Are open to constructive critiques on how to improve
All of this list can be summarised thus:
Great team members CARE.
Following on, two observations I have found is that, firstly, this list applies to all of us, from secretaries to senior management. Secondly, you’ll notice the list has nothing to do with technical skills.
Very rarely do I find that an ideal professional, is a great technician, with an ordinary attitude.
With the current professional skills shortage, in terms of number of available qualified staff, it is very easy to hire for skills only.
But maybe we should consider hiring for people with more the elements of energy, drive, enthusiasm, pride in their work, a personal commitment to excellence and a sincere desire to help.
For owners, just think, wouldn’t it be great to have a happy productive team around me so you don’t have to do it all by yourself?
So think about having a smaller happier team rather than just a large team.
Even an owner with a great secretary, who has the above attributes, is a highly desirable team.
So how do we build an ideal team?
Here are a few simple suggestions.
Firstly you might like to consider future recruiting via a simple structured recruitment program to avoid the hire and hope policy which is fraught with failure.
Everything from setting up your expectations with an ideal job description to ultimately your letter of appointment.
Consider hiring for attitude and training for skills.
Once we’ve crystallised our expectations in our initial meeting in our recruitment program, the next thing you might like to consider is giving feedback as to how our team are going. From my experience, most people really like to know how they are tracking, what their strengths are and what joint goals could be set for the future.
So consider a simple structure performance review process. These are easy to do and very rewarding for all concerned. They should be conducted on a 6 monthly time frame, and could be the basis of salary reviews and incentive bonuses.
From numerous surveys with team members on what people want from their jobs, out of 10 criteria, the following are generally rated the top 3:
1. Feeling “in on things”
2. Appreciation for the work done
3. Varied and interesting work
(Interestingly wage generally rates as the 5th most important, whereas the owners will mostly rate it as the most important)
So what is “feeling in on things”?
This is keeping your team informed either formally through meetings, or, informally, through casual conversation.
They might like to know:
1. Operationally what have we got on for this week, and, after reviewing last week, how could we have done it better.
2. From a company development perspective – how could we improve our service delivery & improve the company after addressing key frustrations
3. Where is the firm going – what plans, objectives & strategies are we going to do to get to where we want to be
All of these meetings should be structured, succinct and built on a culture of continuous improvement.
This gives your team a real purpose and in my opinion if they have that, chances are they are highly likely to excel.
These are some free flowing answers that I am told:
Do whatever it takes to get the job done
Really listen to the needs of the owner
Take pride in their work, and show a personal commitment to quality
Are eager to learn as much as they can about the business they are in
Get involved and don’t just stick to their assigned role
Learn to understand and think like the owner so they can represent them when they are not there.
Are always looking for ways to make things easier
Anticipate, and don’t wait to be told what to do. They show initiative
Reach out for responsibility
Are team players
Can be trusted with confidence
Are honest, trustworthy and loyal
Are open to constructive critiques on how to improve
All of this list can be summarised thus:
Great team members CARE.
Following on, two observations I have found is that, firstly, this list applies to all of us, from secretaries to senior management. Secondly, you’ll notice the list has nothing to do with technical skills.
Very rarely do I find that an ideal professional, is a great technician, with an ordinary attitude.
With the current professional skills shortage, in terms of number of available qualified staff, it is very easy to hire for skills only.
But maybe we should consider hiring for people with more the elements of energy, drive, enthusiasm, pride in their work, a personal commitment to excellence and a sincere desire to help.
For owners, just think, wouldn’t it be great to have a happy productive team around me so you don’t have to do it all by yourself?
So think about having a smaller happier team rather than just a large team.
Even an owner with a great secretary, who has the above attributes, is a highly desirable team.
So how do we build an ideal team?
Here are a few simple suggestions.
Firstly you might like to consider future recruiting via a simple structured recruitment program to avoid the hire and hope policy which is fraught with failure.
Everything from setting up your expectations with an ideal job description to ultimately your letter of appointment.
Consider hiring for attitude and training for skills.
Once we’ve crystallised our expectations in our initial meeting in our recruitment program, the next thing you might like to consider is giving feedback as to how our team are going. From my experience, most people really like to know how they are tracking, what their strengths are and what joint goals could be set for the future.
So consider a simple structure performance review process. These are easy to do and very rewarding for all concerned. They should be conducted on a 6 monthly time frame, and could be the basis of salary reviews and incentive bonuses.
From numerous surveys with team members on what people want from their jobs, out of 10 criteria, the following are generally rated the top 3:
1. Feeling “in on things”
2. Appreciation for the work done
3. Varied and interesting work
(Interestingly wage generally rates as the 5th most important, whereas the owners will mostly rate it as the most important)
So what is “feeling in on things”?
This is keeping your team informed either formally through meetings, or, informally, through casual conversation.
They might like to know:
1. Operationally what have we got on for this week, and, after reviewing last week, how could we have done it better.
2. From a company development perspective – how could we improve our service delivery & improve the company after addressing key frustrations
3. Where is the firm going – what plans, objectives & strategies are we going to do to get to where we want to be
All of these meetings should be structured, succinct and built on a culture of continuous improvement.
This gives your team a real purpose and in my opinion if they have that, chances are they are highly likely to excel.
Developing a plan to achieve new heights for your business
In 1910 two teams of men set out to be the first to reach the South Pole. One team was led by Scott the other Amundsen. Both had a plan. Both had the same objective. Both achieved the success of reaching their goal – one achieved the ultimate goal of being first. From Amundsen and Scott we learn the necessity of a plan and we also recognise that the content of that plan is critical to its success.
Planning is an essential element of business success. You will often hear that people have the Midas touch – “they just seem to be in the right place at the right time”. The fact is that neither luck nor any form of clairvoyance is a dependable element of business success. The real requirements are - key objectives that are realistic but will stretch you and your team and a strategic plan that allows you and your team to achieve the success.
The Planning Environment
If you would like to give your plan a 50% better chance of success the first step is to choose an environment that encourages clear thinking, escapes the frustrations of the office and everyday business concerns. Start with a room that has windows and then add views and peace and quiet. Into that room introduce your key executives or stakeholders.
Add a professional facilitator – who has some knowledge of your type of business. It is obvious that the strategic plan for a professional services group will likely have different insights and content than that of a manufacturing organisation.
Getting the Right Participation
If this is the first time the group has met to create a strategic plan it is very important to review where the business is now. Let the frustrations come to the surface for evaluation and discussion. Be open to recognising the weaknesses of the business but balance that by examining and writing down the strengths. Before your team can look to the future and be involved with blue sky thinking – the everyday agendas need to be put aside. If we are to set stretch goals or objectives – the knowledge of where we are now is essential.
The Time Frame
Most strategic plans encompass a 3 year time frame. They will contain objectives that are measurable. The first meeting and eventual plan will contain objectives for the entire plan but detailed strategies and tactics for the first 12 months.
The Objectives
While you may have in mind a singular objective - the fact is that most strategic plans will have a number of key objectives. A single plan may seek revenue or profit targets – look to a planned increased in team numbers such as in building a sales force or developing a franchise group. You may look to increasing location s or lifting partners in a professional services practise. Always keep in mind that the objectives must have stretch factor. Objectives that are impossible to reach will simply de-motivate your team while being able to pat everyone on the back through easy objectives will simply breed laziness rather than lift team spirit.
Living with the Plan
As an owner or chief executive you will ultimately be responsible for achieving the plan. It is important however to also set your own series of personal objectives. It is reasonable that the same be asked of the key stakeholders. We all need to strive continuously to grow. It was Gary Player who once said the more he practised the luckier he got – there is no doubt that the harder we work to overcome our weakness and better apply our strengths the more successful or “luckier” we will become.
Having developed the plan and involved yourself personally in it, you and your team need to “live it”. Start by reading it every day for 21 days straight. A good plan will be able to be read in 15 to 20 minutes. The plan should be like a well practised golf swing you know it so well that it becomes automatic to think and work to the plan.
Then monthly you need to meet with your key team members using the plan as the basis of judging your success and perhaps highlighting those areas that may not be “going according to plan”. A plan is a living dynamic instrument for your success. As such it may require amendments based on your experience – always look to align actual performance against the plan.
I urge you to think about the future of your business now. If you don’t have a strategic plan in place, begin immediately to assemble your team and create an opportunity and an environment for them to meet and create that plan.
Remember however that the plan is not just a “must have” document. As with Amundsen – it is a document that should have the right strategies and tactics to ensure true success.
Planning is an essential element of business success. You will often hear that people have the Midas touch – “they just seem to be in the right place at the right time”. The fact is that neither luck nor any form of clairvoyance is a dependable element of business success. The real requirements are - key objectives that are realistic but will stretch you and your team and a strategic plan that allows you and your team to achieve the success.
The Planning Environment
If you would like to give your plan a 50% better chance of success the first step is to choose an environment that encourages clear thinking, escapes the frustrations of the office and everyday business concerns. Start with a room that has windows and then add views and peace and quiet. Into that room introduce your key executives or stakeholders.
Add a professional facilitator – who has some knowledge of your type of business. It is obvious that the strategic plan for a professional services group will likely have different insights and content than that of a manufacturing organisation.
Getting the Right Participation
If this is the first time the group has met to create a strategic plan it is very important to review where the business is now. Let the frustrations come to the surface for evaluation and discussion. Be open to recognising the weaknesses of the business but balance that by examining and writing down the strengths. Before your team can look to the future and be involved with blue sky thinking – the everyday agendas need to be put aside. If we are to set stretch goals or objectives – the knowledge of where we are now is essential.
The Time Frame
Most strategic plans encompass a 3 year time frame. They will contain objectives that are measurable. The first meeting and eventual plan will contain objectives for the entire plan but detailed strategies and tactics for the first 12 months.
The Objectives
While you may have in mind a singular objective - the fact is that most strategic plans will have a number of key objectives. A single plan may seek revenue or profit targets – look to a planned increased in team numbers such as in building a sales force or developing a franchise group. You may look to increasing location s or lifting partners in a professional services practise. Always keep in mind that the objectives must have stretch factor. Objectives that are impossible to reach will simply de-motivate your team while being able to pat everyone on the back through easy objectives will simply breed laziness rather than lift team spirit.
Living with the Plan
As an owner or chief executive you will ultimately be responsible for achieving the plan. It is important however to also set your own series of personal objectives. It is reasonable that the same be asked of the key stakeholders. We all need to strive continuously to grow. It was Gary Player who once said the more he practised the luckier he got – there is no doubt that the harder we work to overcome our weakness and better apply our strengths the more successful or “luckier” we will become.
Having developed the plan and involved yourself personally in it, you and your team need to “live it”. Start by reading it every day for 21 days straight. A good plan will be able to be read in 15 to 20 minutes. The plan should be like a well practised golf swing you know it so well that it becomes automatic to think and work to the plan.
Then monthly you need to meet with your key team members using the plan as the basis of judging your success and perhaps highlighting those areas that may not be “going according to plan”. A plan is a living dynamic instrument for your success. As such it may require amendments based on your experience – always look to align actual performance against the plan.
I urge you to think about the future of your business now. If you don’t have a strategic plan in place, begin immediately to assemble your team and create an opportunity and an environment for them to meet and create that plan.
Remember however that the plan is not just a “must have” document. As with Amundsen – it is a document that should have the right strategies and tactics to ensure true success.
Monday, October 8, 2007
Summit sponsors Excellence Awards
The most important and prestigious event in the calendar of Surveyors took place at the Westin Hotel Sydney on Friday 28th September. The Excellence in Surveying and Spatial Information Awards attracted a record 350 people to see the cream of the industry be recognised for outstanding achievement throughout the year. Summit Partners helped sponsor the evening. David Wolrige seen above with Greg Goodman, President of the Surveyors Association of NSW said, “It was a most exciting evening and I am particularly proud that like last year a number of the winners had been graduates of Summit’s coaching program”.
Sunday, September 9, 2007
Strategic Alliances
One of the more interesting aspects of my business is the reasons which motivate a client to seek business coaching. For some it is simply a business that is not making enough money or not growing. For others it is quite clearly a feeling of not being in control of the basic business aspects of their practice. One client I enjoyed helping, exhibited all these issues. I soon realised that the practice was not growing, was only making enough money to cover its overheads and it seemed to me that the partners were not in control. However when I initially asked what the key reason for talking to Summit Partners was - I was told – “we have too much business to cope with and therefore we need help to organise the practice”.
Now when starting out with a client we look to assess their business as it exists. And in this case it didn’t take long to identify a key problem.
The client had a lot of ‘C’ & ‘D’ class clients that took time to service, were difficult, paid late and accounted for a large proportion of the fees being generated.
This in turn meant that what should have been a well staffed practice, in comparison to gross fees, simply could not cope because of a poorly proportioned client base. And this simply compounded the problem of poor profitability.
Having identified and agreed on the problem we began developing a plan that would see our essentially competent group of professionals given a client base that contained a greater proportion of ‘A’ or “ideal clients” with which to work. Ideal clients are those which generate a high level of fees and who because of their own professionalism are pleasant to work with and understand the benefits of efficiency and transparent relationships.
That said – we were not suggesting that the practice immediately fire clients and perhaps reduce staff. The idea was to gradually develop a better client base and move on problem clients over time. Our first objective was more ideal clients – and in doing that create what I call controlled profitable growth.
This obviously required change in the way the business was being run and very specifically a change in direction on developing new business.
The key to this change was the building of “strategic alliances” as a method of finding ideal clients at very little cost while building worthwhile relationships in the wider business community.
What are strategic alliances?
This is the development of a wide range of relationships with other businesses, groups or individuals who are in a position to warmly endorse and refer you to their clients who maybe in the market for your particular professional services. Sometimes they are related to your business – a surveyor for example will be involved with engineers, architects, lawyers, town planners & real estate agents to mention just a few.
It also becomes a win-win situation when you are able to recommend a ‘strategic alliance partner’ to one of your clients or friends.
I believe this strategic alliance approach is the no.1 marketing leverage strategy for most businesses seeking quality clients.
That is, one source equals multiple referred clients at little cost.
Clients referred to you are generally pre-sold, more open to advice, more pleasant to deal with and more profitable. If they are those things then they are also very likely to be highly professional in their own areas of expertise. At this time they become more than clients but rather potential strategic alliances.
So how valuable are strategic alliance partners to your practice?
Let us say we develop 5 strategic alliance partners (i.e. an engineering firm, an architect, town planning firm, real estate agent and a legal firm). Now, if after building the relationship each one refers 1 ideal client worth $20,000 p.a., and then if these new clients use your services for the next 5 years then the value is half a million dollars - a very effective marketing strategy that employs a little of your time.
How to find the right strategic alliance partners.
To gain quality referrals we recommend you seek to establish alliances that exhibit desirable core business values such as sound ethics, a good business reputation and have a positive attitude.
While the rewards for you (and your alliance partner) are significant they may not be easy to find. Certainly in a business sense they, like you, will need to take some time to develop the trust that is required to refer a client to another organisation. An excellent place to start is to consider those business you are already working with eg town planners, architects etc who you currently have a relationship and maybe under service or take for granted but where trust has already been established. Next, look to those businesses where you are already working together such as you your own lawyer or accountant.
The Approach
When I introduce this concept to many clients they will often say “We have great relationships with clients and associates and we are sure they would refer us if they had the chance”. My response is to ask how many times they have recommended you or an engineer or a lawyer to someone else. The truth is that many people are reluctant to recommend or in a business sense, don’t recognise the power of strategic alliances.
It is also true to say that the instinct to recommend, like many other good habits, needs to be worked on. With this in mind you will soon see that we need to approach the building of strategic alliances in the same way we organise other parts of our business dealings.
Firstly establish a list of candidates of ideal related services/firms who have the profile to have these ideal clients you’re looking for. Consider a brief phone call to introduce the subject and confirm a letter will follow with a more detailed proposal that could help both businesses grow with referrals (both ways). Mention this article as the instigator of your idea if you think it will help broach the subject.
The proposal should be brief and avoid explaining the alliance concept in detail, rather outline the benefits and to set an appointment to mutually build on the relationship and the concept. Certainly the letter should suggest a meeting between you to discuss the benefits of a strategic alliance for both parties.
The appointment is to develop synergy and confirm how you could add value to each other’s services. Perhaps you could leave them with a simple overview of what your company offers & how you could help them & their clients. For example your lawyer or engineering partner will probably not have a very detailed idea of what you offer your clients and benefits.
Most importantly educate your strategic alliance partners on the value your recommendation could have to their business.
This then becomes a win for your partner, a win for the clients and a win for you.
Do strongly consider follow up meetings to develop “top of mind” awareness & building that trust & confidence to refer you.
That firm we talked about earlier has grown in a controlled manner over the past 18 months. While they had many issues to address as part of a coaching program, this one marketing leverage strategy has made a decided difference to their business. They still have some of their C and D clients – to suggest we only have ideal clients is simply not a real world scenario for most of us. However the client base has a far great number of the A clients and overall the practice is more profitable and more in control of the new clients they take on board. They are also focussed on upgrading their C and D clients through more active credit control and operational systems.
Now when starting out with a client we look to assess their business as it exists. And in this case it didn’t take long to identify a key problem.
The client had a lot of ‘C’ & ‘D’ class clients that took time to service, were difficult, paid late and accounted for a large proportion of the fees being generated.
This in turn meant that what should have been a well staffed practice, in comparison to gross fees, simply could not cope because of a poorly proportioned client base. And this simply compounded the problem of poor profitability.
Having identified and agreed on the problem we began developing a plan that would see our essentially competent group of professionals given a client base that contained a greater proportion of ‘A’ or “ideal clients” with which to work. Ideal clients are those which generate a high level of fees and who because of their own professionalism are pleasant to work with and understand the benefits of efficiency and transparent relationships.
That said – we were not suggesting that the practice immediately fire clients and perhaps reduce staff. The idea was to gradually develop a better client base and move on problem clients over time. Our first objective was more ideal clients – and in doing that create what I call controlled profitable growth.
This obviously required change in the way the business was being run and very specifically a change in direction on developing new business.
The key to this change was the building of “strategic alliances” as a method of finding ideal clients at very little cost while building worthwhile relationships in the wider business community.
What are strategic alliances?
This is the development of a wide range of relationships with other businesses, groups or individuals who are in a position to warmly endorse and refer you to their clients who maybe in the market for your particular professional services. Sometimes they are related to your business – a surveyor for example will be involved with engineers, architects, lawyers, town planners & real estate agents to mention just a few.
It also becomes a win-win situation when you are able to recommend a ‘strategic alliance partner’ to one of your clients or friends.
I believe this strategic alliance approach is the no.1 marketing leverage strategy for most businesses seeking quality clients.
That is, one source equals multiple referred clients at little cost.
Clients referred to you are generally pre-sold, more open to advice, more pleasant to deal with and more profitable. If they are those things then they are also very likely to be highly professional in their own areas of expertise. At this time they become more than clients but rather potential strategic alliances.
So how valuable are strategic alliance partners to your practice?
Let us say we develop 5 strategic alliance partners (i.e. an engineering firm, an architect, town planning firm, real estate agent and a legal firm). Now, if after building the relationship each one refers 1 ideal client worth $20,000 p.a., and then if these new clients use your services for the next 5 years then the value is half a million dollars - a very effective marketing strategy that employs a little of your time.
How to find the right strategic alliance partners.
To gain quality referrals we recommend you seek to establish alliances that exhibit desirable core business values such as sound ethics, a good business reputation and have a positive attitude.
While the rewards for you (and your alliance partner) are significant they may not be easy to find. Certainly in a business sense they, like you, will need to take some time to develop the trust that is required to refer a client to another organisation. An excellent place to start is to consider those business you are already working with eg town planners, architects etc who you currently have a relationship and maybe under service or take for granted but where trust has already been established. Next, look to those businesses where you are already working together such as you your own lawyer or accountant.
The Approach
When I introduce this concept to many clients they will often say “We have great relationships with clients and associates and we are sure they would refer us if they had the chance”. My response is to ask how many times they have recommended you or an engineer or a lawyer to someone else. The truth is that many people are reluctant to recommend or in a business sense, don’t recognise the power of strategic alliances.
It is also true to say that the instinct to recommend, like many other good habits, needs to be worked on. With this in mind you will soon see that we need to approach the building of strategic alliances in the same way we organise other parts of our business dealings.
Firstly establish a list of candidates of ideal related services/firms who have the profile to have these ideal clients you’re looking for. Consider a brief phone call to introduce the subject and confirm a letter will follow with a more detailed proposal that could help both businesses grow with referrals (both ways). Mention this article as the instigator of your idea if you think it will help broach the subject.
The proposal should be brief and avoid explaining the alliance concept in detail, rather outline the benefits and to set an appointment to mutually build on the relationship and the concept. Certainly the letter should suggest a meeting between you to discuss the benefits of a strategic alliance for both parties.
The appointment is to develop synergy and confirm how you could add value to each other’s services. Perhaps you could leave them with a simple overview of what your company offers & how you could help them & their clients. For example your lawyer or engineering partner will probably not have a very detailed idea of what you offer your clients and benefits.
Most importantly educate your strategic alliance partners on the value your recommendation could have to their business.
This then becomes a win for your partner, a win for the clients and a win for you.
Do strongly consider follow up meetings to develop “top of mind” awareness & building that trust & confidence to refer you.
That firm we talked about earlier has grown in a controlled manner over the past 18 months. While they had many issues to address as part of a coaching program, this one marketing leverage strategy has made a decided difference to their business. They still have some of their C and D clients – to suggest we only have ideal clients is simply not a real world scenario for most of us. However the client base has a far great number of the A clients and overall the practice is more profitable and more in control of the new clients they take on board. They are also focussed on upgrading their C and D clients through more active credit control and operational systems.
Professional Relationship Pricing
When Summit Partners first began working with surveyors on improving the profitability and equally, developing the opportunities of their practices I was immediately surprised at the low pricing for professional services being charged in the industry. This was even more apparent when I factored in the value that surveyors brought to their clients projects. It seemed to me that the fixed percentages of real estate agents and architects or the far higher rates per hour charged by solicitors and engineers were more appropriate to the benefits they delivered their clients.
As highly trained professionals it seemed that surveyors often found themselves in ongoing discounting situations. We also noted the general style of clients and their buying habits – developers and builders who are driven by profitability and time pressures and, separately, individuals who are more price driven in the absence of any other criteria. We couldn’t see how your importance could be underestimated.
We found that the more surveyors ‘discounted’ the more clients continued to expect cheaper prices and, separately, the more the clients subconsciously questioned the quality of your work. When such ‘discounting’ took place, together with the general introverted personal profile of surveyors, this presented a continuously downward spiral of: lost profitability on jobs, time pressures on staff, and generally unhappy business owners and often their clients.
The more we worked with surveyors the more we understood why discounting on price was rampant throughout the profession. We discovered that the reasons why prices weren’t more commercial was largely because of 3 principal factors:
1. Fear of a complaint
2. Fear of losing a client
3. Competition – particularly from small 1 person firms
This led to poor fee paying clients, poor profitability and a poorly paid team and owners.
Then after completing numerous client surveys, it has become clearly apparent that clients essentially wanted 2 clear results from surveyors: a quality & timely product, and, also, a relationship. Equally we found, if there is no relationship, price will reign supreme as the most important criteria to evaluate on.
Finally we reviewed how surveyors price their services and we came to the conclusion that suggests pricing was set on: firstly, surveyors own beliefs on prices; the guide for fees in the handbook (which we understand is based on historical costing methods) or, thirdly, competition. All these were based around our fears.
So how do we go about building a more commercial professional fees structure?
From our experience and through our pricing model, a successful adjustment to your prices can clearly be made if you follow a trusted and proven formula.
First, enhance your self belief by questioning yourself about how many complaints you get from the quality of your work and the price on your invoice. Maybe a conclusion you might have is that if we get 5 complaints out of 100 that maybe we’re too cheap.
Secondly, consider delivering quality work in advance of expectations.
Thirdly, and this is the key to this article, build strong relationships preferably with your ‘A’ and ‘B’ clients. When was the last time you had a coffee or lunch with an ‘A’ or a ‘B’ client just to see how you could help them more?
Next consider setting new prices and payment standards and test.
Finally, continually review and improve.
This model has had significant success, however, a word of caution, if you believe you can’t move your prices (which are justified by the odd complaint or poor success on quoting) then your right, you can’t.
But if you believe you can, then read on.
How do I present my new prices?
(Incidentally notice I used the word ‘price’ which has some perceived value, as opposed to ‘fees’ or ‘charges’ which is perceived as a cost with no value)
For phone enquiries – develop a model of seeing how you can help a new enquiry by asking, what, when, why and discuss benefits to the client.
(From our experience, quoting prices on the phone will more often than not succeed or fail based on your sales process and not the price)
For written survey design proposals (not ‘quotes’ i.e. price based) clarify not only the technical requirements but also include clear benefits of the product and service you will provide and features of your firm or ‘why I should use you’. Consider a range of prices to cover obvious unknowns.
For current clients – a superbly worded letter and call model should go a long way to reassuring and enhancing client relationships.
Finally consider your invoices which should be very detailed as to all work completed and the layout is also critical to send a good final message of quality and the volume of work.
What prices do I charge?
If you’ve followed the above relationship formula, consider adjusting your prices by % for 1 month and test the clients’ reaction.
Don’t take exception to the few complaints (i.e. price shoppers etc), focus instead on the vast majority who don’t complain and who understand and still really want to do business with you.
I do understand it takes time, particularly if you haven’t adjusted your prices for some time – hang in there, it does work.
Bill with pride, being content in the quality of your product provided and the timely nature of the service given.
So the message is develop strong client relationships and then sell on value not on price. If you do, I guarantee price will be less of an issue and the positioning of your firm will be more that at the quality end rather than that at the discount end.
As highly trained professionals it seemed that surveyors often found themselves in ongoing discounting situations. We also noted the general style of clients and their buying habits – developers and builders who are driven by profitability and time pressures and, separately, individuals who are more price driven in the absence of any other criteria. We couldn’t see how your importance could be underestimated.
We found that the more surveyors ‘discounted’ the more clients continued to expect cheaper prices and, separately, the more the clients subconsciously questioned the quality of your work. When such ‘discounting’ took place, together with the general introverted personal profile of surveyors, this presented a continuously downward spiral of: lost profitability on jobs, time pressures on staff, and generally unhappy business owners and often their clients.
The more we worked with surveyors the more we understood why discounting on price was rampant throughout the profession. We discovered that the reasons why prices weren’t more commercial was largely because of 3 principal factors:
1. Fear of a complaint
2. Fear of losing a client
3. Competition – particularly from small 1 person firms
This led to poor fee paying clients, poor profitability and a poorly paid team and owners.
Then after completing numerous client surveys, it has become clearly apparent that clients essentially wanted 2 clear results from surveyors: a quality & timely product, and, also, a relationship. Equally we found, if there is no relationship, price will reign supreme as the most important criteria to evaluate on.
Finally we reviewed how surveyors price their services and we came to the conclusion that suggests pricing was set on: firstly, surveyors own beliefs on prices; the guide for fees in the handbook (which we understand is based on historical costing methods) or, thirdly, competition. All these were based around our fears.
So how do we go about building a more commercial professional fees structure?
From our experience and through our pricing model, a successful adjustment to your prices can clearly be made if you follow a trusted and proven formula.
First, enhance your self belief by questioning yourself about how many complaints you get from the quality of your work and the price on your invoice. Maybe a conclusion you might have is that if we get 5 complaints out of 100 that maybe we’re too cheap.
Secondly, consider delivering quality work in advance of expectations.
Thirdly, and this is the key to this article, build strong relationships preferably with your ‘A’ and ‘B’ clients. When was the last time you had a coffee or lunch with an ‘A’ or a ‘B’ client just to see how you could help them more?
Next consider setting new prices and payment standards and test.
Finally, continually review and improve.
This model has had significant success, however, a word of caution, if you believe you can’t move your prices (which are justified by the odd complaint or poor success on quoting) then your right, you can’t.
But if you believe you can, then read on.
How do I present my new prices?
(Incidentally notice I used the word ‘price’ which has some perceived value, as opposed to ‘fees’ or ‘charges’ which is perceived as a cost with no value)
For phone enquiries – develop a model of seeing how you can help a new enquiry by asking, what, when, why and discuss benefits to the client.
(From our experience, quoting prices on the phone will more often than not succeed or fail based on your sales process and not the price)
For written survey design proposals (not ‘quotes’ i.e. price based) clarify not only the technical requirements but also include clear benefits of the product and service you will provide and features of your firm or ‘why I should use you’. Consider a range of prices to cover obvious unknowns.
For current clients – a superbly worded letter and call model should go a long way to reassuring and enhancing client relationships.
Finally consider your invoices which should be very detailed as to all work completed and the layout is also critical to send a good final message of quality and the volume of work.
What prices do I charge?
If you’ve followed the above relationship formula, consider adjusting your prices by % for 1 month and test the clients’ reaction.
Don’t take exception to the few complaints (i.e. price shoppers etc), focus instead on the vast majority who don’t complain and who understand and still really want to do business with you.
I do understand it takes time, particularly if you haven’t adjusted your prices for some time – hang in there, it does work.
Bill with pride, being content in the quality of your product provided and the timely nature of the service given.
So the message is develop strong client relationships and then sell on value not on price. If you do, I guarantee price will be less of an issue and the positioning of your firm will be more that at the quality end rather than that at the discount end.
Sunday, August 26, 2007
Listen to Clients and your Team
One question I am often asked at seminars is “How can I get my team as committed to the firm as I am?”
Now in business coaching we look at a number of ways to increase individual and team commitment. Regular reviews, guidance, respect are all part of the package. However while there are many techniques – there is no doubt in my mind that the word “involvement” covers the most important and useful of them all. .
“Involving your team” in the running of your business will not only increase commitment, it will also make running your business easier because it will give you access to their experience and viewpoints – providing a greater information base.
By working with your people you can create an understanding and commitment to your business strategy and objectives. This clear focus and singular direction will also be a breeding ground for new ideas and continuous improvement.
Your team will like to feel ‘in’ on things and equally really like to help with ideas for improvement and maybe some opportunities for you. They are often your ears to the client’s comments and concerns.
Indeed the philosophy of involvement recognises that in most companies, the team is much closer to the customers than the owners are.
The idea of involvement doesn’t just end with your team. It applies to your clients as well. Your clients will really like to contribute ideas to help you as well.
Their view is important – not just because they are important to the health of the business but also because they will often see things differently about your business. What might seem like a nice informal arrangement to you might seem to be inefficient to them. On the other hand they may see areas in which your business can grow simply because they have the ears of their friends in the business. Involvement can lead to those all important Strategic Alliances we talked about last month.
This is certainly true for my business. That’s why we conduct client focus groups and constantly get feedback from our team on how we can improve.
Having agreed involvement is important, so what are some of the ways we can create meaningful involvement?
One of the best ways is consistently (say a minimum of every 6 months) have short interactive client phone feedback sessions and team focus group meetings.
Some may ask “what are client and team focus groups”?
A Client Focus Group
To serve its customers exceptionally well, a business must learn the act of listening – really listening – to what its customers are saying.
Unquestionably, the most rewarding way to truly listen is to invite a cross section of customers to a “Client Focus Group” phone feedback call. In the search of excellence in the field of customer service they are a necessity.
By organising a client focus group we hope to:
Grow the business by listening to your customers’ perception of your strengths, weaknesses, opportunities and threats and give you an opportunity to use them in your strategic planning.
By actually asking for their opinions you will build team of clients that are in part keeping an eye on your business and on your competitors for you.
A Team Focus Group
A Team Focus Group involves inviting a cross section of an organisation’s team members to participate in a formal group discussion. It offers invaluable feedback and advice in improving the overall operations of the company and better meeting our client’s needs.
Remember while it is important to cover problems and key issues – this is also the forum to encourage creative thinking, allowing the team to be involved with the future of the business.
Let me say right now – it is also imperative that the team see that their ideas are appreciated and perhaps the best way to do this is to include them as part of your ongoing plans when appropriate.
Particularly involve young people as they tend to be most creative and innovative by age 30. They will gain in confidence, and, in the team environment, also gain in experience.
A Team Focus Group allows your team to: -
Discuss their roles in the company and how they assist the company in achieving its goals.
Express their ideas on improving the company’s performance in areas such as, customer service
Provide their perception of management and the effectiveness of the organisational structure.
Openly discuss their effectiveness as a team, how that can be further improved and what performance standards are in place.
Not only does it provide important information but it also builds fierce loyalty and commitment from amongst the team. Then you have a team dedicated to keeping an eye on improving the business whilst looking for opportunities.
So how do we do it?
Let’s start with your clients. Consider asking a good cross section of relatively happy clients, ten or more, questions such as: -
“If a business acquaintance asked you about your experience with (your company) would you give us an unqualified endorsement, yes or no? If not, why not?”
Having reviewed the information it is now time to share it with your team. Suggest improvements or opportunities – get the ball rolling.
At the team meeting ask for their views on improvements, what’s important to them in their jobs, how are we going with our client service and their views on work flow performance.
Armed with all of this great information it is critical to undertake two further steps.
1. Send thank you letters to clients and convey thanks in an appropriate form to your team….and,
2. Take action
As suggested if clients and your team see improvements happening, then loyalty & commitment will become entrenched in your firm as a result.
Client and team focus groups are highly rewarding opportunities to grow your business through improved service and innovation. Of course they are not chargeable hours however, consider this - chargeable hours determine your cash for today – non chargeable hours spent building commitment and loyalty will undoubtedly determine your future.
Now in business coaching we look at a number of ways to increase individual and team commitment. Regular reviews, guidance, respect are all part of the package. However while there are many techniques – there is no doubt in my mind that the word “involvement” covers the most important and useful of them all. .
“Involving your team” in the running of your business will not only increase commitment, it will also make running your business easier because it will give you access to their experience and viewpoints – providing a greater information base.
By working with your people you can create an understanding and commitment to your business strategy and objectives. This clear focus and singular direction will also be a breeding ground for new ideas and continuous improvement.
Your team will like to feel ‘in’ on things and equally really like to help with ideas for improvement and maybe some opportunities for you. They are often your ears to the client’s comments and concerns.
Indeed the philosophy of involvement recognises that in most companies, the team is much closer to the customers than the owners are.
The idea of involvement doesn’t just end with your team. It applies to your clients as well. Your clients will really like to contribute ideas to help you as well.
Their view is important – not just because they are important to the health of the business but also because they will often see things differently about your business. What might seem like a nice informal arrangement to you might seem to be inefficient to them. On the other hand they may see areas in which your business can grow simply because they have the ears of their friends in the business. Involvement can lead to those all important Strategic Alliances we talked about last month.
This is certainly true for my business. That’s why we conduct client focus groups and constantly get feedback from our team on how we can improve.
Having agreed involvement is important, so what are some of the ways we can create meaningful involvement?
One of the best ways is consistently (say a minimum of every 6 months) have short interactive client phone feedback sessions and team focus group meetings.
Some may ask “what are client and team focus groups”?
A Client Focus Group
To serve its customers exceptionally well, a business must learn the act of listening – really listening – to what its customers are saying.
Unquestionably, the most rewarding way to truly listen is to invite a cross section of customers to a “Client Focus Group” phone feedback call. In the search of excellence in the field of customer service they are a necessity.
By organising a client focus group we hope to:
Grow the business by listening to your customers’ perception of your strengths, weaknesses, opportunities and threats and give you an opportunity to use them in your strategic planning.
By actually asking for their opinions you will build team of clients that are in part keeping an eye on your business and on your competitors for you.
A Team Focus Group
A Team Focus Group involves inviting a cross section of an organisation’s team members to participate in a formal group discussion. It offers invaluable feedback and advice in improving the overall operations of the company and better meeting our client’s needs.
Remember while it is important to cover problems and key issues – this is also the forum to encourage creative thinking, allowing the team to be involved with the future of the business.
Let me say right now – it is also imperative that the team see that their ideas are appreciated and perhaps the best way to do this is to include them as part of your ongoing plans when appropriate.
Particularly involve young people as they tend to be most creative and innovative by age 30. They will gain in confidence, and, in the team environment, also gain in experience.
A Team Focus Group allows your team to: -
Discuss their roles in the company and how they assist the company in achieving its goals.
Express their ideas on improving the company’s performance in areas such as, customer service
Provide their perception of management and the effectiveness of the organisational structure.
Openly discuss their effectiveness as a team, how that can be further improved and what performance standards are in place.
Not only does it provide important information but it also builds fierce loyalty and commitment from amongst the team. Then you have a team dedicated to keeping an eye on improving the business whilst looking for opportunities.
So how do we do it?
Let’s start with your clients. Consider asking a good cross section of relatively happy clients, ten or more, questions such as: -
“If a business acquaintance asked you about your experience with (your company) would you give us an unqualified endorsement, yes or no? If not, why not?”
Having reviewed the information it is now time to share it with your team. Suggest improvements or opportunities – get the ball rolling.
At the team meeting ask for their views on improvements, what’s important to them in their jobs, how are we going with our client service and their views on work flow performance.
Armed with all of this great information it is critical to undertake two further steps.
1. Send thank you letters to clients and convey thanks in an appropriate form to your team….and,
2. Take action
As suggested if clients and your team see improvements happening, then loyalty & commitment will become entrenched in your firm as a result.
Client and team focus groups are highly rewarding opportunities to grow your business through improved service and innovation. Of course they are not chargeable hours however, consider this - chargeable hours determine your cash for today – non chargeable hours spent building commitment and loyalty will undoubtedly determine your future.
Thursday, August 9, 2007
Leadership - Is it Charisma or a Learnable Skill Set?
There is no doubt that in this media driven age that leadership can sometimes be mixed up with charisma. We tend to judge a politician’s leadership skills by how they appear on TV rather than actual policies or actions. Therefore those who may not feel particularly charismatic can begin to doubt their leadership aspirations.
The truth is of course that the foundation for leadership is based first on real knowledge of the business or profession in which we seek to lead others and secondly a desire to accept the responsibilities of leading others.
As for providing leadership – it is not about charisma but rather a series of learnable skills. Indeed experience with coaching many business leaders and empirical research shows that there five key skills that lead to the development of lasting leadership qualities.
Good leaders exhibit strong characters
Of crucial importance to your team is their individual importance to you and your attitude to developing and testing their skills. In short they are asking you to create challenges and opportunities for them as well as providing useful critiques of their work. Indeed it is all about helping them to perform by improving either the environment, systems or strategies of the team overall.
This is where character rather than charisma becomes very clear. Your team will judge you not on a wonderful speech - but rather on your everyday performance and the example you set for them. If you are transparent, treat others with respect, constantly search for improvement from yourself and your team, are passionate about your clients and your team – then you will be leading by example - delivering what you are asking them to deliver.
Relationship Building
Here you need to work with individuals and your team as a whole. Communication is a must. Issues such as how their team performance contributes to the company overall should be understood by the team as a whole. You should be seeking ideas from the them and when relevant using them. Giving credit to the team or team member who thought up the idea is critical. Be quick to let incompetent people go if you are satisfied that it is their incompetence not that of the team or the company which is at fault. The old saying about bad apples in barrels is quite true. Don’t be seen to reward incompetence. Look for ways to celebrate with your team – rather than with individuals. At the end of the day – it is the team that you want to deliver. Lastly be accessible I know one senior chairman in the communication industry who always tried to answer his own phone. Rather than be inundated by trivia his team appreciated his availability and used it wisely.
Leading Change
If it’s not broke don’t fix it is in many cases a truism of business. However if it is ‘broke’ then it is time to demonstrate your leadership by looking to change the way your company or your team does business. Chances are your team will feel threatened by the difficult operating climate and even more threatened when you set out to make changes. It is therefore critical to set out clearly why changes are required and co-opt the support of the team to implement them. Your relationship with the team will now be critical. Set objectives involve the team in your strategies and keep them abreast of the success resulting from change.
Focus on results
Ultimately good leadership is judged by positive results. And if you are to accept the accolades and rewards for good leadership then you must realise that your individual performance is a key ingredient of leadership. Here are a few questions you should be asking yourself on a regular basis:
What stretch goals need to be set for my company, my team and for me?
Do I constantly focus on the goals we set or do I drift off and think only of today’s operational jobs?
Do I give feedback to my team on their performance?
Have I provided a clears vision for my team?
Do I give strong consideration to the needs of my clients with appropriate customer service standards?
How can I improve?
Personal Skills
Jack Nicklaus once said that many golfers failed because they tried shots that they were not capable of completing successfully. He was saying that we need to understand our level of skill and then if we want to improve – set about improving those skills.
Just as leading sports stars have to constantly set new goals and develop new skills via coaching, applying psychology, constant practise – so too, today’s business leaders need to constantly improve.
You should consider attending professional workshops, reading journals in your industry and associated industries, seek business coaching and mentoring and learn to use technology more effectively.
Seek inspiration from those around you. Talk to your coach about setting personal goals, talk to and copy other leaders or people you respect. Most of all accept that the hardest person to change is ourselves. Many who are happy to change others do not like change being instituted in relation to their own roles. So accept the challenge of change and consider:
New ways to improve productivity
New approaches to client service and marketing
New systems and tools
New ways to train and develop your team.
In short, step outside your comfort zone. With each step you will grow as a leader.
Be an effective leader
We began by suggesting that charisma is often confused with leadership. It is true that many great leaders have charisma. Some leaders are shaped by circumstances such as a family with a history of leaders in business or the services. However for 95% of current and future leaders the areas we have outlined make up a manual for learning great leadership skills.
This article is really about improving your game. Lifting your skills so that you will be a better leader capable of helping others also improve both as an individuals and team members.
Why not make “being a better leader” your objective for 2007.
The truth is of course that the foundation for leadership is based first on real knowledge of the business or profession in which we seek to lead others and secondly a desire to accept the responsibilities of leading others.
As for providing leadership – it is not about charisma but rather a series of learnable skills. Indeed experience with coaching many business leaders and empirical research shows that there five key skills that lead to the development of lasting leadership qualities.
Good leaders exhibit strong characters
Of crucial importance to your team is their individual importance to you and your attitude to developing and testing their skills. In short they are asking you to create challenges and opportunities for them as well as providing useful critiques of their work. Indeed it is all about helping them to perform by improving either the environment, systems or strategies of the team overall.
This is where character rather than charisma becomes very clear. Your team will judge you not on a wonderful speech - but rather on your everyday performance and the example you set for them. If you are transparent, treat others with respect, constantly search for improvement from yourself and your team, are passionate about your clients and your team – then you will be leading by example - delivering what you are asking them to deliver.
Relationship Building
Here you need to work with individuals and your team as a whole. Communication is a must. Issues such as how their team performance contributes to the company overall should be understood by the team as a whole. You should be seeking ideas from the them and when relevant using them. Giving credit to the team or team member who thought up the idea is critical. Be quick to let incompetent people go if you are satisfied that it is their incompetence not that of the team or the company which is at fault. The old saying about bad apples in barrels is quite true. Don’t be seen to reward incompetence. Look for ways to celebrate with your team – rather than with individuals. At the end of the day – it is the team that you want to deliver. Lastly be accessible I know one senior chairman in the communication industry who always tried to answer his own phone. Rather than be inundated by trivia his team appreciated his availability and used it wisely.
Leading Change
If it’s not broke don’t fix it is in many cases a truism of business. However if it is ‘broke’ then it is time to demonstrate your leadership by looking to change the way your company or your team does business. Chances are your team will feel threatened by the difficult operating climate and even more threatened when you set out to make changes. It is therefore critical to set out clearly why changes are required and co-opt the support of the team to implement them. Your relationship with the team will now be critical. Set objectives involve the team in your strategies and keep them abreast of the success resulting from change.
Focus on results
Ultimately good leadership is judged by positive results. And if you are to accept the accolades and rewards for good leadership then you must realise that your individual performance is a key ingredient of leadership. Here are a few questions you should be asking yourself on a regular basis:
What stretch goals need to be set for my company, my team and for me?
Do I constantly focus on the goals we set or do I drift off and think only of today’s operational jobs?
Do I give feedback to my team on their performance?
Have I provided a clears vision for my team?
Do I give strong consideration to the needs of my clients with appropriate customer service standards?
How can I improve?
Personal Skills
Jack Nicklaus once said that many golfers failed because they tried shots that they were not capable of completing successfully. He was saying that we need to understand our level of skill and then if we want to improve – set about improving those skills.
Just as leading sports stars have to constantly set new goals and develop new skills via coaching, applying psychology, constant practise – so too, today’s business leaders need to constantly improve.
You should consider attending professional workshops, reading journals in your industry and associated industries, seek business coaching and mentoring and learn to use technology more effectively.
Seek inspiration from those around you. Talk to your coach about setting personal goals, talk to and copy other leaders or people you respect. Most of all accept that the hardest person to change is ourselves. Many who are happy to change others do not like change being instituted in relation to their own roles. So accept the challenge of change and consider:
New ways to improve productivity
New approaches to client service and marketing
New systems and tools
New ways to train and develop your team.
In short, step outside your comfort zone. With each step you will grow as a leader.
Be an effective leader
We began by suggesting that charisma is often confused with leadership. It is true that many great leaders have charisma. Some leaders are shaped by circumstances such as a family with a history of leaders in business or the services. However for 95% of current and future leaders the areas we have outlined make up a manual for learning great leadership skills.
This article is really about improving your game. Lifting your skills so that you will be a better leader capable of helping others also improve both as an individuals and team members.
Why not make “being a better leader” your objective for 2007.
Sunday, July 29, 2007
Cash Flow Acceleration
I recently received a call from a client asking what he should do about an opportunity for $30,000 worth of surveying work.
While not normally a question he would raise with me – on this occasion it related to an issue that we had been working through during recent coaching sessions. Essentially the client offering the project had a bad track record with the practice – slow payer, price shopper, fee negotiator etc, etc. On a scale of A to D - this client was a ‘D’ and had already been identified as a concern.
As always with ‘D’ clients we were seemingly looking at a trade off. The revenue involved would assist the practice through a lean period, particularly as the client needed to move quickly with the project. On the other hand, it would only help if my client could defy history and accelerate his cash flow from this client.
So what is cash flow acceleration?
There was a time in business when accelerating your cash flow meant being paid in advance of your normal terms of trade. Sadly today the definition really means being paid on time by a majority of clients and it is more and more a critical element of running a successful business.
Getting paid is the fulfilment of the process of selling and providing your product or service. In that sense it is simply a part of your professional relationship with your client. Equally, being paid on time is also a part of your professional arrangement. It should simply be the result of a quality, on time service.
However just as we need to educate clients on the value they receive – the issue of payment needs the same attention in many cases. You should clearly establish your terms of business at the very beginning of your client relationship. Having established those terms there needs to be a very definite plan to ensure that the terms are kept. A serious attitude by you or your firm will in most cases be respected by the client – particularly those clients who share your principles in the way they do business. Also attitude to payment will be a key indicator of client quality. It is rare to find a ‘D’ client who pays on time.
The psychology of meeting debts is a positive factor in the process. Most people actually want to keep their promises – whether they relate to payment of bills or on time delivery. By reminding clients of payment the emotional response is usually a desire to fix the matter..
However when your requests for payment go unheeded you have to consider all your debt collection options from personal calls, visits, debt collection letters, debt collection agency letters, legal letters and action.
It must be understood that the longer it takes for a client to pay the chances of getting payment are slimmer by the day.
What is the benefit?
The way I see it, there are two key benefits to accelerating cash flow.
The most obvious benefit is improvements in cash flow through securing deposits, interim payments and prompt payments on completion.
However there is another less obvious, more powerful benefit. The systematic application of good credit control will result in greater acceptance of your terms by clients. That then means less time spent on what for many of us is simply a chore. In turn it allows those responsible for this role to move onto more positive aspects of their job with far more energy and enthusiasm. And usually that means they will then be able to deliver better customer service, develop better products and services and build a far better business and enjoy doing it a lot more.
How to implement a cash flow acceleration program
Here are some key considerations that you might like to build into a system that will work for you:
1. Consider the payment of fees in your client selection criteria then build the relationship and demonstrate your value.
2. Quantify the fees in advance at the initial meeting with the client/prospect, or at the first transaction.
3. Educate new clients upfront by clarifying the expectations of your payment terms, also explain and add some free value up front (i.e. info sheet, newsletter, regulation updates)
4. Endeavour to get deposits for up to one third of the total fees, upfront.
5. Where practical, present the account to the client when giving over work or send out invoices promptly (i.e. within a few days) and regularly provide interim bills for large work. This sends a clear message that prompt payment is important to you.
6. Clearly print on invoices your bank account details for easy internet bank transfer payments, or, for regular work periodical bank payments for credit accounts. Request bank transfers as a normal way of conducting transactions.
7. After making payment terms - ideally 7 days or for large corporate accounts 30 days - follow up promptly. Again this sends the message that you are a professional and payment is important to you.
8. An alternative to verbal follow up is a series of well written personal but, standard letters 1, 2, 3 followed by threatening legal statements if required. This method has its place however is a poor alternative. Verbal follow up is always recommended.
Now about that client I mentioned at the beginning. His ideal outcome was obviously to be awarded the $30,000 project but be paid on time. We agreed that he needed to put in writing that he would undertake the project based on a one third deposit with the balance on completion. He also emphasised that the practice would need to make room for the project given the urgency – thus adding value.
The result? The customer wrote a cheque, paid the balance on completion and the surveyor more importantly now has the deposit requirement on all new work proposals with the obvious benefit of accelerating cash flow.
David Wolrige
While not normally a question he would raise with me – on this occasion it related to an issue that we had been working through during recent coaching sessions. Essentially the client offering the project had a bad track record with the practice – slow payer, price shopper, fee negotiator etc, etc. On a scale of A to D - this client was a ‘D’ and had already been identified as a concern.
As always with ‘D’ clients we were seemingly looking at a trade off. The revenue involved would assist the practice through a lean period, particularly as the client needed to move quickly with the project. On the other hand, it would only help if my client could defy history and accelerate his cash flow from this client.
So what is cash flow acceleration?
There was a time in business when accelerating your cash flow meant being paid in advance of your normal terms of trade. Sadly today the definition really means being paid on time by a majority of clients and it is more and more a critical element of running a successful business.
Getting paid is the fulfilment of the process of selling and providing your product or service. In that sense it is simply a part of your professional relationship with your client. Equally, being paid on time is also a part of your professional arrangement. It should simply be the result of a quality, on time service.
However just as we need to educate clients on the value they receive – the issue of payment needs the same attention in many cases. You should clearly establish your terms of business at the very beginning of your client relationship. Having established those terms there needs to be a very definite plan to ensure that the terms are kept. A serious attitude by you or your firm will in most cases be respected by the client – particularly those clients who share your principles in the way they do business. Also attitude to payment will be a key indicator of client quality. It is rare to find a ‘D’ client who pays on time.
The psychology of meeting debts is a positive factor in the process. Most people actually want to keep their promises – whether they relate to payment of bills or on time delivery. By reminding clients of payment the emotional response is usually a desire to fix the matter..
However when your requests for payment go unheeded you have to consider all your debt collection options from personal calls, visits, debt collection letters, debt collection agency letters, legal letters and action.
It must be understood that the longer it takes for a client to pay the chances of getting payment are slimmer by the day.
What is the benefit?
The way I see it, there are two key benefits to accelerating cash flow.
The most obvious benefit is improvements in cash flow through securing deposits, interim payments and prompt payments on completion.
However there is another less obvious, more powerful benefit. The systematic application of good credit control will result in greater acceptance of your terms by clients. That then means less time spent on what for many of us is simply a chore. In turn it allows those responsible for this role to move onto more positive aspects of their job with far more energy and enthusiasm. And usually that means they will then be able to deliver better customer service, develop better products and services and build a far better business and enjoy doing it a lot more.
How to implement a cash flow acceleration program
Here are some key considerations that you might like to build into a system that will work for you:
1. Consider the payment of fees in your client selection criteria then build the relationship and demonstrate your value.
2. Quantify the fees in advance at the initial meeting with the client/prospect, or at the first transaction.
3. Educate new clients upfront by clarifying the expectations of your payment terms, also explain and add some free value up front (i.e. info sheet, newsletter, regulation updates)
4. Endeavour to get deposits for up to one third of the total fees, upfront.
5. Where practical, present the account to the client when giving over work or send out invoices promptly (i.e. within a few days) and regularly provide interim bills for large work. This sends a clear message that prompt payment is important to you.
6. Clearly print on invoices your bank account details for easy internet bank transfer payments, or, for regular work periodical bank payments for credit accounts. Request bank transfers as a normal way of conducting transactions.
7. After making payment terms - ideally 7 days or for large corporate accounts 30 days - follow up promptly. Again this sends the message that you are a professional and payment is important to you.
8. An alternative to verbal follow up is a series of well written personal but, standard letters 1, 2, 3 followed by threatening legal statements if required. This method has its place however is a poor alternative. Verbal follow up is always recommended.
Now about that client I mentioned at the beginning. His ideal outcome was obviously to be awarded the $30,000 project but be paid on time. We agreed that he needed to put in writing that he would undertake the project based on a one third deposit with the balance on completion. He also emphasised that the practice would need to make room for the project given the urgency – thus adding value.
The result? The customer wrote a cheque, paid the balance on completion and the surveyor more importantly now has the deposit requirement on all new work proposals with the obvious benefit of accelerating cash flow.
David Wolrige
Sunday, June 10, 2007
It's All About Time
We have all heard the cliché that “time is money” and I’m sure you would agree it is a truism when it comes to business. We might also extend the thought behind the cliché and say that time is in fact a currency and how we choose to spend our ‘time’ is of critical importance. And like any limited resource we must be careful not to let others waste our time.
Let’s take a look at a situation facing many people in business today. Specifically “I can’t find quality people to help build my business”. The strategy that is employed to overcome the problem is often one of curbing business growth, using more time working with current clients and in a sense treading water. However as someone once said about business – if you aren’t going forward, you’re going backwards. In essence natural client attrition is not matched by new client growth and your team members find they aren’t growing and thus the original problem is amplified.
So what’s the solution? In short it’s all about the proper measurement and allocation of your most important business resource – time - not only your time but that of the people who work for you.
I ask a lot of professionals how much income producing time they achieve each 40+ hour week. Answers range from; “I don’t know” to typically 20-25 hours, or approximately 55% of their week. This suggests that 45%, of their week is involved in “pursuits that do not create revenue”. Yet there seems to be little real understanding of what they are doing with this apparently non-productive time.
Of course there is a litany of labels for the wasted 45% - phone calls, administration problems, people issues etc.
The reality is that we can all develop bad habits originating from when they first started a new business. Because you had to do everything ten years ago with two staff – continues on when you have ten staff but the business is busier. Of course if you are not managing or nurturing your own time your employees will have the same problem.
So the answer to the problem of a lack of good staff is not in “I must do more” – the answer is “I must be smarter with the time resource I have. Let us look at an example based on a current unplanned 45% resource usage. Let’s allocate it as follows:-
15% or 5 hours per week extra income producing (or 225 extra income producing hours per year!)
15% for business development i.e. building client relationships, skill building of your team, personal marketing for new clients, developing new tools & systems and most importantly looking at new people & new clients on a regular basis rather than as a last minute exercise.
15% for administration or financial matters i.e. phone calls, emails, accounts, correspondence etc.
You can see there is a huge potential to increase revenue by increasing income producing hours, and business development time.
Unless you plan your time, the urgent drives out the important.
Why not consider some new time categories when developing your ideal week model.
Income time: (we call it “blue” or cash generating time):
- blocks of time for today’s income producing
Investment time: (“black” time for business development)
- blocks of time to create your future
Individual time: (blocks of ‘red’ time for everything else)
- time for personal emergencies, proposals, unexpected client requests, thinking, administration
Consider putting in key systems for your team to allow them to understand the management of time and the need for a planned approach. Find ways to help them block off time with a minimum of interruptions such as a system for only taking appropriate calls from clients and leaving others to a set part of the day. There is no doubt, that focus on the job at hand and doing that for as long as it takes to complete is a smarter way of using blocks of time.
This colour coding strategy for time will see the following objectives met:
1. Improved productivity to make up for the short-term issue of new staff
2. Increased client satisfaction as you and your staff appear more accessible
3. Greater time allocation skills for you and your employees
4. Better clients and more of them because you will have actually focussed time on building the business
Income producing time determines your current income - non income producing time determines your future. To neglect non income producing time is to neglect your future.
Finally as any coach will tell you – many amateur golfers use practise time doing what they already do well. For example if they are good at hitting a golf ball a long way – they’ll spend time with the driver at the range because it is easy to do. Equally if they putt well then it is enjoyable to spend time on the practise green. Professionals on the other hand practise and work hard at the most important things for them to succeed. It is the same with your business time. If you don’t enjoy administration – focus harder on delegating more & giving it to someone who is more proficient. You’ll make more money building on your strengths and being brilliant at what you do best.
David Wolrige
Let’s take a look at a situation facing many people in business today. Specifically “I can’t find quality people to help build my business”. The strategy that is employed to overcome the problem is often one of curbing business growth, using more time working with current clients and in a sense treading water. However as someone once said about business – if you aren’t going forward, you’re going backwards. In essence natural client attrition is not matched by new client growth and your team members find they aren’t growing and thus the original problem is amplified.
So what’s the solution? In short it’s all about the proper measurement and allocation of your most important business resource – time - not only your time but that of the people who work for you.
I ask a lot of professionals how much income producing time they achieve each 40+ hour week. Answers range from; “I don’t know” to typically 20-25 hours, or approximately 55% of their week. This suggests that 45%, of their week is involved in “pursuits that do not create revenue”. Yet there seems to be little real understanding of what they are doing with this apparently non-productive time.
Of course there is a litany of labels for the wasted 45% - phone calls, administration problems, people issues etc.
The reality is that we can all develop bad habits originating from when they first started a new business. Because you had to do everything ten years ago with two staff – continues on when you have ten staff but the business is busier. Of course if you are not managing or nurturing your own time your employees will have the same problem.
So the answer to the problem of a lack of good staff is not in “I must do more” – the answer is “I must be smarter with the time resource I have. Let us look at an example based on a current unplanned 45% resource usage. Let’s allocate it as follows:-
15% or 5 hours per week extra income producing (or 225 extra income producing hours per year!)
15% for business development i.e. building client relationships, skill building of your team, personal marketing for new clients, developing new tools & systems and most importantly looking at new people & new clients on a regular basis rather than as a last minute exercise.
15% for administration or financial matters i.e. phone calls, emails, accounts, correspondence etc.
You can see there is a huge potential to increase revenue by increasing income producing hours, and business development time.
Unless you plan your time, the urgent drives out the important.
Why not consider some new time categories when developing your ideal week model.
Income time: (we call it “blue” or cash generating time):
- blocks of time for today’s income producing
Investment time: (“black” time for business development)
- blocks of time to create your future
Individual time: (blocks of ‘red’ time for everything else)
- time for personal emergencies, proposals, unexpected client requests, thinking, administration
Consider putting in key systems for your team to allow them to understand the management of time and the need for a planned approach. Find ways to help them block off time with a minimum of interruptions such as a system for only taking appropriate calls from clients and leaving others to a set part of the day. There is no doubt, that focus on the job at hand and doing that for as long as it takes to complete is a smarter way of using blocks of time.
This colour coding strategy for time will see the following objectives met:
1. Improved productivity to make up for the short-term issue of new staff
2. Increased client satisfaction as you and your staff appear more accessible
3. Greater time allocation skills for you and your employees
4. Better clients and more of them because you will have actually focussed time on building the business
Income producing time determines your current income - non income producing time determines your future. To neglect non income producing time is to neglect your future.
Finally as any coach will tell you – many amateur golfers use practise time doing what they already do well. For example if they are good at hitting a golf ball a long way – they’ll spend time with the driver at the range because it is easy to do. Equally if they putt well then it is enjoyable to spend time on the practise green. Professionals on the other hand practise and work hard at the most important things for them to succeed. It is the same with your business time. If you don’t enjoy administration – focus harder on delegating more & giving it to someone who is more proficient. You’ll make more money building on your strengths and being brilliant at what you do best.
David Wolrige
Monday, May 21, 2007
What You Can Measure You Can Manage
You will all be familiar with the phrase “free measure and quote” in advertisements for everything from flyscreens to garage doors. The customer perceives free as a benefit while the retailer recognises that the measure is an absolute requirement if they are to get the sale.
Similarly in business the need to understand the dynamics of your business and be able to measure and then manage the key economic drivers that affect its success are critical.
Have you ever stopped to think what those key factors are for your business? Have you ever developed a set of performance targets that need to be met or exceeded if your business is to be as profitable and dynamic as you would want?
Take a moment now and list down 3 critical elements of your business that can be measured. You might start with areas of the business that you feel could be better managed or that you simply have concerns about.
Some of these could include:
• Productivity of your team
• Sales conversions
• Poor cash flow from customers not paying on time
• Too much money tied up in Work In Progress
Having identified the problems and then established a measurement for them – the task of developing strategies to improve these dynamics is a lot easier for you and your team.
Now we have all heard of “paralysis by analysis” So the idea isn’t to start measuring all the factors that may have an impact on your business. The amount of coffee the team drinks each day or the difference between fancy or plain biscuits to the overheads are unlikely to be of concern. The key to moving your business forward is to identify the critical components to get right.
We’ve found that by helping to identify, measure and manipulate the key economic factors in our client’s businesses they then begin to show very fast signs of improvement in profitability. More importantly the installation of consistent measurement and monitoring aligned with strategies to improve the actual performances are foundations for improved growth and a culture of continuous improvement and purpose throughout your company.
In recent years we’ve had some interesting examples of measuring key performance indicators that have made a huge impact on business.
For example one professional practice was writing off some $300,000 worth of fees as a result of a combination of factors: 1. Under quoting by a partner 2. Inefficiency in completing jobs 3. Partners writing off fees as they didn’t think clients would pay. While the first issue could be directly attributed to one individual – the establishment of cost and timing norms for the performance of certain functions along with attention to work in progress on a monthly basis would have overcome the problems long before we were brought in to help.
Another firm with cash flow problems had almost half a million dollars tied up in work-in -progress - when the real number should have been $200,000. Quite obviously work in progress was for this company a critical economic factor but it had not been identified, measured and managed for a number of years.
Generally we’ve also found that a lot of businesses only monitor there progress by cash at bank or at best monthly financial statements. We suggest valid measurements that measure key performance drivers in marketing, operations and human resources will identify problems and indeed opportunities long before dry financial statements.
The frequency of monitoring these key performance indicators varies from business to business. However experience shows that weekly and separate monthly financial management monitoring is a must. If you monitor your key drivers weekly, this gives you an opportunity to create history 50 times per year. Consider this against annual financial reporting which is just reporting on history.
Measurement requirements are often peculiar to certain types of business for example:-
• Billable hours vs. budget
• No. of proposals and success rate
• Number of jobs produced on time and in budget
• Debtors, Work In Progress, Cash at Bank
Have a think about monitoring your key economic drivers and establish ways to measure and monitor their performance. Then simply establish objectives and strategies for improving your performance in these areas.
David Wolrige
Similarly in business the need to understand the dynamics of your business and be able to measure and then manage the key economic drivers that affect its success are critical.
Have you ever stopped to think what those key factors are for your business? Have you ever developed a set of performance targets that need to be met or exceeded if your business is to be as profitable and dynamic as you would want?
Take a moment now and list down 3 critical elements of your business that can be measured. You might start with areas of the business that you feel could be better managed or that you simply have concerns about.
Some of these could include:
• Productivity of your team
• Sales conversions
• Poor cash flow from customers not paying on time
• Too much money tied up in Work In Progress
Having identified the problems and then established a measurement for them – the task of developing strategies to improve these dynamics is a lot easier for you and your team.
Now we have all heard of “paralysis by analysis” So the idea isn’t to start measuring all the factors that may have an impact on your business. The amount of coffee the team drinks each day or the difference between fancy or plain biscuits to the overheads are unlikely to be of concern. The key to moving your business forward is to identify the critical components to get right.
We’ve found that by helping to identify, measure and manipulate the key economic factors in our client’s businesses they then begin to show very fast signs of improvement in profitability. More importantly the installation of consistent measurement and monitoring aligned with strategies to improve the actual performances are foundations for improved growth and a culture of continuous improvement and purpose throughout your company.
In recent years we’ve had some interesting examples of measuring key performance indicators that have made a huge impact on business.
For example one professional practice was writing off some $300,000 worth of fees as a result of a combination of factors: 1. Under quoting by a partner 2. Inefficiency in completing jobs 3. Partners writing off fees as they didn’t think clients would pay. While the first issue could be directly attributed to one individual – the establishment of cost and timing norms for the performance of certain functions along with attention to work in progress on a monthly basis would have overcome the problems long before we were brought in to help.
Another firm with cash flow problems had almost half a million dollars tied up in work-in -progress - when the real number should have been $200,000. Quite obviously work in progress was for this company a critical economic factor but it had not been identified, measured and managed for a number of years.
Generally we’ve also found that a lot of businesses only monitor there progress by cash at bank or at best monthly financial statements. We suggest valid measurements that measure key performance drivers in marketing, operations and human resources will identify problems and indeed opportunities long before dry financial statements.
The frequency of monitoring these key performance indicators varies from business to business. However experience shows that weekly and separate monthly financial management monitoring is a must. If you monitor your key drivers weekly, this gives you an opportunity to create history 50 times per year. Consider this against annual financial reporting which is just reporting on history.
Measurement requirements are often peculiar to certain types of business for example:-
• Billable hours vs. budget
• No. of proposals and success rate
• Number of jobs produced on time and in budget
• Debtors, Work In Progress, Cash at Bank
Have a think about monitoring your key economic drivers and establish ways to measure and monitor their performance. Then simply establish objectives and strategies for improving your performance in these areas.
David Wolrige
Thursday, April 19, 2007
How can you be more successful in business?
Have you ever wondered why some people are incredibly successful while others, though talented, often have very ordinary careers?
About a year ago I attended a school reunion and met two former classmates. While not particular friends of mine during our school years I had very clear memories of two friends who were bright, personable individuals. I seemed to remember they had intentions of following professional careers. As it turns out – both had graduated in commerce and taken up careers in accounting.
As someone with an accounting background I found it interesting that one of the men had become a senior partner in his firm and was a key factor in the practice’s increasing success. The other had a comfortable career but had never achieved more than simply being a cog in the wheel of a small suburban practise.
Now perhaps one was more talented or ambitious than the other. Perhaps one had connections that the other hadn’t. Maybe one had more luck than the other. These words or phrases are often used to explain away the differences in careers.
However after many years of assisting individuals and their organisations to be more successful, I have concluded that it is more than native intelligence, personality, talent or ambition that are behind success. Certainly it isn’t that one person wants success and the other doesn’t – however this is a very important start point for success in my opinion. ‘You have to want to make it – to make it’.
In my search to find out more about success - some time ago I decided to commission a research program on the subject of success. We interviewed small business owners and established a formula of success based on growth over a ten year period. Given the rate at which small business fail – ten years was a significant timeframe.
We then looked for similarities between those businesses that had shown growth and those that were essentially stagnant – perhaps moving with inflation. In the no growth group, which was indeed the larger group, we found the following common factors
87% had no clear direction for their business
92% adopted a ‘hire and hope’ policy in staff recruitment
95% no idea of what style of clients they wanted to attract
77% had no clear control over the key financial and non-financial aspects of their business
In the success group we found one key ingredient – the desire by the management to learn and try out new thinking. Invariably the people in this group read management books, had taken advantage of new technology, had hired people and created careers for them and encouraged some form of ownership to ensure continuity into the future and with their client or business base.
Today I believe that this success group is turning to professional business coaches to formalise and perhaps enforce the development of their businesses. Recently we asked some of our clients why they had hired us. The very common answer was – “we weren’t managing our business well enough”.
Coaching is fast becoming the leading development tool of choice for small to medium business owners looking for managed business growth. And unlike applying the thinking found in business books or trying new “things” – a coaching program which isolates weaknesses and establishes goals – can be seen as integral to future success.
Specifically, a business coach takes a step back and casts an independent eye over the way the business operates and what areas could be improved upon. Remember the coach is not trying to make, in the case of surveyors, – better surveyors. The coach is about making well qualified and dedicated surveyors into better business people capable of growing their practice.
The fact is that most surveyors don’t start up a practice based on their knowledge of marketing, finance, human resources and administration. Yet if they are to succeed –they will need to take on or manage all these roles, while still maintaining the raison d’etre of the business.
A business coach will help uncover and clarify your personal goals and help develop a set business objectives. This managed approach to the business will give the owner more time for clearer thinking. Together with the owner or key executive group they will be instrumental in moving the business forward in key areas such as :
• Building better top line fees through modern marketing
• Developing a great team through innovative team building and human resource techniques.
• Growing bottom line profit with sound financial strategies
How it works
The reality is that the business coach and their client need to create a relationship based on mutual respect. With an understanding of our strengths the coach will:-
• Become an independent thinking partner and confidante who gives an unbiased, non judgemental view
• Help the client to become organised and focussed on what’s important
• Provide an opportunity to discuss ideas, results and challenges free from conflict
• Present and help institute solid business models and systems that can be easily implemented
• Assistance in building confidence as the client gains more and more control over their future development
Coaches help business owners with a broad range of information via on site coaching sessions, workshops, email, phone calls that is of specific and real significance to entrepreneurial minded people.
Not just theories and thought but real results gained from real experiences and successes in areas that their clients have not experienced.
What should you be looking for?
Experience is the number one priority when looking for a business coach. Look for someone who has experience in client coaching and can show personal success in business. Don’t be afraid to ask for proof of qualifications and referrals from previous clients. You should also ask about their own business training, memberships of coaching associations etc. You need to feel a good rapport with the coach particularly as sometimes they may have to “be cruel to be kind”. Lastly, make sure you can comfortably fit the fees in your budget. Equally, as with most things, we pay for what we get. Sadly, some pay for what they don’t get – so please do look at the credentials and references of anyone you intend to hire.
An Investment in Success
Properly instituted, understood and managed, change can, in turn, mean growth.
Hence, if the time is right for change then business coaching, to help you manage and direct change, could be just the investment needed to grow profitability. And of course a properly managed business will give you confidence and perhaps the freedom to enjoy the fruits of your success.
In Conclusion
Now I should talk about those two classmates that prompted this article.
The more successful of the two men gave me a call about month after our meeting. We had lunch and he talked about developing a program for his senior partners. Over the years he had personally taken up many opportunities to improve his knowledge of business and how to operate a business. While not formally involved with coaching he had set out to find mentors or consultants that expanded his thinking. Calling me was simply a reflex action of someone constantly looking to improve.
In his personal situation the search for help had been a less formalised system of development that what we offer our clients and easily explained given that business coaching in this country is relatively new. It offers a far more controlled manner of learning and developing as an owner.
A business coach can’t promise you success. The reality is that everything worthwhile achieving usually takes time and application. However once you are committed to a coach and to a properly based program you will be given every opportunity to succeed. Indeed business coaches are about preparing people for success.
David Wolrige
David heads up the results driven business coaching team at Summit Partners, who are NSW’s leading specialist business development advisors to surveyors and other professional groups. Visit their website at www.summitpartners.com.au or contact David directly on (02) 8883 4699
About a year ago I attended a school reunion and met two former classmates. While not particular friends of mine during our school years I had very clear memories of two friends who were bright, personable individuals. I seemed to remember they had intentions of following professional careers. As it turns out – both had graduated in commerce and taken up careers in accounting.
As someone with an accounting background I found it interesting that one of the men had become a senior partner in his firm and was a key factor in the practice’s increasing success. The other had a comfortable career but had never achieved more than simply being a cog in the wheel of a small suburban practise.
Now perhaps one was more talented or ambitious than the other. Perhaps one had connections that the other hadn’t. Maybe one had more luck than the other. These words or phrases are often used to explain away the differences in careers.
However after many years of assisting individuals and their organisations to be more successful, I have concluded that it is more than native intelligence, personality, talent or ambition that are behind success. Certainly it isn’t that one person wants success and the other doesn’t – however this is a very important start point for success in my opinion. ‘You have to want to make it – to make it’.
In my search to find out more about success - some time ago I decided to commission a research program on the subject of success. We interviewed small business owners and established a formula of success based on growth over a ten year period. Given the rate at which small business fail – ten years was a significant timeframe.
We then looked for similarities between those businesses that had shown growth and those that were essentially stagnant – perhaps moving with inflation. In the no growth group, which was indeed the larger group, we found the following common factors
87% had no clear direction for their business
92% adopted a ‘hire and hope’ policy in staff recruitment
95% no idea of what style of clients they wanted to attract
77% had no clear control over the key financial and non-financial aspects of their business
In the success group we found one key ingredient – the desire by the management to learn and try out new thinking. Invariably the people in this group read management books, had taken advantage of new technology, had hired people and created careers for them and encouraged some form of ownership to ensure continuity into the future and with their client or business base.
Today I believe that this success group is turning to professional business coaches to formalise and perhaps enforce the development of their businesses. Recently we asked some of our clients why they had hired us. The very common answer was – “we weren’t managing our business well enough”.
Coaching is fast becoming the leading development tool of choice for small to medium business owners looking for managed business growth. And unlike applying the thinking found in business books or trying new “things” – a coaching program which isolates weaknesses and establishes goals – can be seen as integral to future success.
Specifically, a business coach takes a step back and casts an independent eye over the way the business operates and what areas could be improved upon. Remember the coach is not trying to make, in the case of surveyors, – better surveyors. The coach is about making well qualified and dedicated surveyors into better business people capable of growing their practice.
The fact is that most surveyors don’t start up a practice based on their knowledge of marketing, finance, human resources and administration. Yet if they are to succeed –they will need to take on or manage all these roles, while still maintaining the raison d’etre of the business.
A business coach will help uncover and clarify your personal goals and help develop a set business objectives. This managed approach to the business will give the owner more time for clearer thinking. Together with the owner or key executive group they will be instrumental in moving the business forward in key areas such as :
• Building better top line fees through modern marketing
• Developing a great team through innovative team building and human resource techniques.
• Growing bottom line profit with sound financial strategies
How it works
The reality is that the business coach and their client need to create a relationship based on mutual respect. With an understanding of our strengths the coach will:-
• Become an independent thinking partner and confidante who gives an unbiased, non judgemental view
• Help the client to become organised and focussed on what’s important
• Provide an opportunity to discuss ideas, results and challenges free from conflict
• Present and help institute solid business models and systems that can be easily implemented
• Assistance in building confidence as the client gains more and more control over their future development
Coaches help business owners with a broad range of information via on site coaching sessions, workshops, email, phone calls that is of specific and real significance to entrepreneurial minded people.
Not just theories and thought but real results gained from real experiences and successes in areas that their clients have not experienced.
What should you be looking for?
Experience is the number one priority when looking for a business coach. Look for someone who has experience in client coaching and can show personal success in business. Don’t be afraid to ask for proof of qualifications and referrals from previous clients. You should also ask about their own business training, memberships of coaching associations etc. You need to feel a good rapport with the coach particularly as sometimes they may have to “be cruel to be kind”. Lastly, make sure you can comfortably fit the fees in your budget. Equally, as with most things, we pay for what we get. Sadly, some pay for what they don’t get – so please do look at the credentials and references of anyone you intend to hire.
An Investment in Success
Properly instituted, understood and managed, change can, in turn, mean growth.
Hence, if the time is right for change then business coaching, to help you manage and direct change, could be just the investment needed to grow profitability. And of course a properly managed business will give you confidence and perhaps the freedom to enjoy the fruits of your success.
In Conclusion
Now I should talk about those two classmates that prompted this article.
The more successful of the two men gave me a call about month after our meeting. We had lunch and he talked about developing a program for his senior partners. Over the years he had personally taken up many opportunities to improve his knowledge of business and how to operate a business. While not formally involved with coaching he had set out to find mentors or consultants that expanded his thinking. Calling me was simply a reflex action of someone constantly looking to improve.
In his personal situation the search for help had been a less formalised system of development that what we offer our clients and easily explained given that business coaching in this country is relatively new. It offers a far more controlled manner of learning and developing as an owner.
A business coach can’t promise you success. The reality is that everything worthwhile achieving usually takes time and application. However once you are committed to a coach and to a properly based program you will be given every opportunity to succeed. Indeed business coaches are about preparing people for success.
David Wolrige
David heads up the results driven business coaching team at Summit Partners, who are NSW’s leading specialist business development advisors to surveyors and other professional groups. Visit their website at www.summitpartners.com.au or contact David directly on (02) 8883 4699
Friday, March 23, 2007
9 KEYS TO PEAK PERFORMANCE
To start off the new financial year here are a few key ideas for you and your business:
1. MARKETING - Building Relationships
Customer/clients not only want a good product/service, they also want a trusting happy relationship.
How much time do you spend on relationship marketing?
2. TEAM - Hire slow & fire fast
Get the right people on the bus, the wrong people off the bus and have the right people doing the right things
How much time do you spend on recruiting the best and developing your team?
3. TIME - My most important task
Starting each day and concentrating single-mindedly on completing my most important task will give you positive endorphins to think like a winner - think about the rewards - the more you do it the more positive you become.
Would that make a difference?
4. FINANCIAL - Build assets & grow
Start by listing your assets and liabilities and then after developing a forecast for your business, decide what you would do with surplus profits - buy more assets and/or reduce liabilities - and then regularly monitor progress
Do you have a list of your assets and a budget?
5. IDEALS - Think what I want and how I am going to get it
Decide exactly what you want, write it down, set a deadline and make a list of what I need to do to achieve those goals. Highly satisfying.
When should I start a planned list?
6. HEALTH & FITNESS - Life only gets better when I get better on the inside
Have you considered?:
1. Fitness (i.e. walking, running, stretching , sport)
2. Nutrition (i.e. better diet, more water, less coffee)
3. Personal Development (i.e. more solitude & thinking, more holidays)
7. EXCELLENCE - Resolve to be exceptional
If you’re going to be in it why not commit to do your best to be in the top 10%. Learn more, earn more. Continuous improvement thinking.
What one skill, if I did it excellently, would help double my income?
8. SOLUTIONS - Think about solutions most of the time
Focusing on solutions and not the problem will make you feel better. Ask yourself how questions - e.g. how can I spend more time at golf? How can I spend more time with my family?
What important questions could I ask of myself?
9. ACTION
Develop a sense of urgency. Become proactive to make it happen. Once in motion stay in motion
When will I start my plan? ________________________________
If you would like further advice about any of the above please feel free to ring us on (02) 8883 4699. Or if you think you know someone who could benefit from business coaching, simply email or ring us. We’d be delighted to contact them to see if we could help.
1. MARKETING - Building Relationships
Customer/clients not only want a good product/service, they also want a trusting happy relationship.
How much time do you spend on relationship marketing?
2. TEAM - Hire slow & fire fast
Get the right people on the bus, the wrong people off the bus and have the right people doing the right things
How much time do you spend on recruiting the best and developing your team?
3. TIME - My most important task
Starting each day and concentrating single-mindedly on completing my most important task will give you positive endorphins to think like a winner - think about the rewards - the more you do it the more positive you become.
Would that make a difference?
4. FINANCIAL - Build assets & grow
Start by listing your assets and liabilities and then after developing a forecast for your business, decide what you would do with surplus profits - buy more assets and/or reduce liabilities - and then regularly monitor progress
Do you have a list of your assets and a budget?
5. IDEALS - Think what I want and how I am going to get it
Decide exactly what you want, write it down, set a deadline and make a list of what I need to do to achieve those goals. Highly satisfying.
When should I start a planned list?
6. HEALTH & FITNESS - Life only gets better when I get better on the inside
Have you considered?:
1. Fitness (i.e. walking, running, stretching , sport)
2. Nutrition (i.e. better diet, more water, less coffee)
3. Personal Development (i.e. more solitude & thinking, more holidays)
7. EXCELLENCE - Resolve to be exceptional
If you’re going to be in it why not commit to do your best to be in the top 10%. Learn more, earn more. Continuous improvement thinking.
What one skill, if I did it excellently, would help double my income?
8. SOLUTIONS - Think about solutions most of the time
Focusing on solutions and not the problem will make you feel better. Ask yourself how questions - e.g. how can I spend more time at golf? How can I spend more time with my family?
What important questions could I ask of myself?
9. ACTION
Develop a sense of urgency. Become proactive to make it happen. Once in motion stay in motion
When will I start my plan? ________________________________
If you would like further advice about any of the above please feel free to ring us on (02) 8883 4699. Or if you think you know someone who could benefit from business coaching, simply email or ring us. We’d be delighted to contact them to see if we could help.
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