What does YOUR Year End Review Look Like?

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The year end brings a perfect time to take a clear look back to see what worked and what didn’t in your business.  Too many times, senior leaders look at “did we hit our number?” as the all consuming barometer.  That is absolutely critical.  It’s also dangerous if that’s the only thing that’s reviewed with a magnifying glass. 

Start at the basics to ground you in the brutal economic truth.

  • Are your sales & profits up or down?  How close to your budget?

  • Are you getting better at what you do?  Usually your margin %’s are an indicator here, all things being equal (input costs, pricing), margins moving north indicate productivity improvements and/or favorable mix.  Sometimes businesses plan them up or down based on op ex investments, so margins relative to expectations are the critical view.

  • In almost all cases, up beats down…….but in my experience, businesses that can not grow margin rates over time are forced to grow the topline at accelerated rates, and that can be expensive for shareholders if it’s not done organically (ie via acquisition).  Growing margin rates and top-line revenue are obviously not mutually exclusive, doing both is where it’s at.

 

Investment & Focus areas

  • People/Team?  (new hires, promotions, existing employees), how have you done? 

    • Are key individuals getting significantly better, or are they treading water?
    • How much did you spend on training?  Did you see an impact?  If not, why?
  • Culture? 

    • Overall workforce engagement (morale) and ownership of outcomes and common definition of a great future.  What have you spent against this?  What was your ROI, or if too difficult to measure, would you repeat it?
    • What’s your turnover rate and is it better or worse?
    • What’s your safety record?
    • What are your quality defects?
    • Are you happy with the results orientation of the business among your people?  Or do they have just a cursory view of business performance and their respective role in improving it?
    • Is recruiting becoming easier because your existing workforce is turning into the company’s best advocates?
  • What does your business pipeline look like going into the new year? (Customers)

    • How strong are you with your existing customers?  Are they growing as a group, flat or declining?  What are their intentions going forward?
    • Strong enough to recover from key customer losses and still grow?
    • How does your innovation stack up?  Are the new products/services in development likely to pull margins up or down, or are you doing more of the same?
    • Are you telling your story (marketing) effectively and attracting people to YOU?  Have you embraced the world of digital or still part of the masses that think it doesn’t apply to you?
  • Process Improvements?  All areas of business have a process, whether well defined or not. 

    • Have you analyzed your key business processes to look for improvement?
    • What’s your key business process where the management team comes together?  How strong?
  • Equipment?  Better, more efficient, safe equipment, or more total capacity….

  • Technology? 

    • Still stuck in a world of cocktail napkins or contemplating a real company system?  Or are you stuck in a world of spreadsheets where power users get it, others struggle?
  • Last, is your company stronger financially at the end of 2016 vs. the start of it?  Multiple metrics for this, but your balance sheet ratios of liquidity, debt coverage, shareholder equity and cash are all good indicators.  NOTE:  All of these metrics are the outcomes of everything above

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Being “Title Blind” in The Sales Game: Learn From Sunshine

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There are a few things that won’t ever get old in business (or life).  Many times, they are painfully simple and don’t cost a nickle.

  • A smile

  • A pat on the back

  • “Please”

  • “Thank You”

  • Atta Boy!  Atta Girl!

  • I appreciate you!

You know what can get messy?

When you treat people dramatically different, or are BEING TREATED dramatically different once your title/role/position authority is understood.  The entire game is changed.

A brief story…

While sitting at the desk with an office staff all away from the desk, the office phone (remember those things?) rings.  I pick it up:

Me:  “LM Foods?”
Caller:  “Hi, Mr. X please.”
Me:  “Sorry, Mr. X is tied up in the plant, been a crazy week, how can I help you?  Where you calling from?”
Caller:  “Calling from company Y.  When is Mr. X Available?”
Me:  “Hard to tell, it’s a plant and he’s putting out fires, tell me what company Y does?”
Caller:  “Sir, I’m one of Mr. X’s vendors, why don’t I just call back at another time when Mr. X may be available!”
Me:  “What kind of business have we done with you in the past?”
Caller:  “I’m one of Mr. X’s Vendors, but you buy product A from us if you need to know and you bought it in January?”
Me:  “Interesting and thanks for sharing that, but Mr. X is not the person that can help you with that?”
Caller:  “I used to deal with Harry, he’s no longer there and someone told me to talk to Mr. X!”
Me:  “Why don’t you send me a brief e-mail with a short description of your company, how we’ve done business and if I have that context I’d be happy to get you to the right person so your not so frustrated?”
Caller:  “What is it that you do?”
Me:  “Well I own the company, on a good day!”

What do you think our caller did next?

  • First (after a long pause) the tone softened dramatically!
  • Than an apology for the short/terse conversation.
  • Then I counseled the caller that I felt a little bit of pressure when all I’m trying to do is help, “and to be honest the tone/vibe shouldn’t change when you learn of my position which is what I’m feeling right now.”

 

Unfortunately, I’m still waiting for the follow up email.

Sometimes helping sales people (or anyone) can only happen when they want to help themselves.

This little story reminded me of “the old days” and a former team member of mine.  I used to work with someone who earned one of the great nicknames that can be given to a human being:

“SUNSHINE”

Nicknames only matter when they stick.  Sunshine earned her nickname.  That’s what I felt when I interacted with her.  As did everyone around her.  Sunshine is human like all of us, had her bad days like all of us had.  But like the real sun, she rose each day.  And whether you were the owner of a company, or whether you were the janitor, she treats everyone like they are the most important person in the room, and status never got in the way of her basic, warm approach to human interaction.

At the end of the day, sales is about people connection.  Forming a bond with humans.  So is leadership.  So is doing a good job if you are a factory worker, a delivery person.

I believe most humans NOTICE when behavior changes on a dime, and whether they know it or not, they can spot the trigger of that change a mile away.  Those are the moments a connection is made, but all too often, it is LOST.

If a person’s behavior IMPROVES as the person recognizes a person title, when that title has some “status” watch out.

If a person’s behavior is great all the time, but ESPECIALLY thoughtful to the people at the lower rungs of the ladder, watch closely here as well.  That person may have a gift.  That could be a nose for sales.  Or an ability to lead or inspire.

Or maybe, that person just has a component of Sunshine?  One thing I’m fairly certain:  Every company needs a little Sunshine.

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The Empathy Void: Politics, Business, No Difference!

Presidential election season is filled with interesting leadership lessons, voids and learning opportunities. One word comes to mind when I think about Leadership em·pa·thy According to our good friend Google.... ˈempəTHē noun 1.  the … [Continue reading]

A Wake-UP Call to Recruiters

I'm not sure if a business comes to mind where I'm hit up more than Recruiters.  Headhunters.  Staffing Agencies.  Every week it's a different company (or 2-3) that offers to find me great talent, massive databases, great screening, etc.  What a … [Continue reading]

2 Warning Signs in Talent Selection

One of the hardest areas in business to consistently get right is "picking winners."  Great talent that makes an impact is a game changer for any business.  Of course, picking winners is easier said than done. I've written on some recruiting … [Continue reading]

April Fool’s Day Matters

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Today, I knocked out a post on my company blog on April Fools day: http://lmfoods.com/blog/april-fools-day-laughter-matters Here's the gist of it.... People at work flat out don't laugh enough.  I mean REAL laugh, that takes oxygen, … [Continue reading]

Standing Up: If Not Now, When?

There's something about running a business and all the different twists and turns that can cause you to think.  Combine that with 3 strong cups of black coffee, the last day of 2015 (the day of turning 42!) and a look to the future and voila, a … [Continue reading]

A Lesson From The Shark Tank: Simplicity & Focus

I love the Shark Tank.  It's not only great entertainment, it's a fantastic education to the start-up world and how entrepreneurs pitch investors, what's important to both sides, sales/communication and how both sides come together to form a … [Continue reading]

Why Labor Day is My Favorite Holiday

A 2011 Harris Poll Caught my eye, ranking America's favorite Holidays, and then segmenting that info by generation and gender. I'll admit it:  Labor Day is MY favorite Holiday. In the past I've called it Under-rated.  Misunderstood.  Now I'll just … [Continue reading]

Talent Selection: Skills or Values?

My world view around phenomenal business success is clearly centered around the "soft" issues of business. As Tom Peters brilliantly put it: "Soft is hard.  Hard is soft!" Culture.  Team Work.  Service.  > Strategy.  Planning.  Analysis. All … [Continue reading]

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