Is the world changing or are you changing?

Before we begin to debate this question, let’s start with the meaning of the word change: To become or make different. Substitute or replace. Transition from something. Obviously, the number of variants continues and I could add more but this should a good start. I guess when it comes to change, the bottom-line is that we are attempting to make a fresh start in our business with the expectation of a positive result at a predetermined point in the future. Dr. Kit Silcox once shared with me three these questions of wisdom:

• What do you want to do?
• What do you need to do?
• What can you do?

Answering these there questions may be an excellent way in determining what you might need to change in your business to meet the future needs and expectations of your clients.

The last six months have left many businesses scrambling for ideas that enable them to stay on track. What they wanted to do, what they needed to do, and could do has been de-railed and influenced not only internal forces but in the present context more strongly influenced by external forces. One thing is certain; you succeed when you think critically and ask questions.

The problem generally is that we may not be asking enough challenging questions in order to generate a clear and balanced perspective.

If you are alone in your business you may decide to involve family and friends in the process.

If your business is larger, get a few of the key managers involved. You can even take it a step further by involving a business coach to facilitate the discussion so that you ask questions that will permit everyone in the process to see well beyond conventional discussions. The process should be well documented and prioritized and should lead to both short-term and long-term goals and a strategies to move forward.

The economy, market shifts and demographics will continue to affect us but we do have a choice. The choice to react to our current situation or to focus on the future. Nicholas Boothman said it so well in his book ‘How to connect in business in 90 seconds or less’ in referring to KFC. Nicholas was not talking about chicken. He was taking about a concept of Knowing what you want, Finding out what you are getting and, most importantly Changing what you are getting until you get what you want.

It is obvious the world is changing but instead of trying to control change and all variables that are affecting you, control the change and speed around you by asking the type of questions that keep you firmly in command.

Tapping into your growth potential in 2009

As I write this I am unaware of how may of you read the articles in Canada’s Financial Post newspaper. The Small business section on Monday June 1, 2009 contained three great articles that I felt were worth discussing because the messages have significant value.

1. Business plan can unlock your growth potential.
2. Do not make knee-Jerk calls.
3. Credit for those who know how to ask for it

Lets first talk about the relationship between how a “Business plan can unlock your growth potential” and the link to the second article “Do not make Knee-jerk calls”.

It is pretty obvious that we all tend to live and work in an environment that expands and shrinks sometimes at a rapid place and sometimes at a slow pace. We also know that some small business owners tend to fly by the seat of their pants and make decisions based on Gut feel while others are well informed and tend to make tactical decisions. So which of the two type is best? Many studies have been done that indicate 85% of a businesses success is related to being able to make tactical decisions. In doing so we set ourselves up to win because all the chaos associated with change, can be better managed and controlled.

So if this is true how does it relate to the second article? In the second article they begin by talking about how the down turn in the economy is both an opportunity and a threat. An opportunity because it allows us to seriously evaluate what is important to the business. The evaluation should be a written plan that enable you to be more tactical.

It can also be a threat because short term cash flow issues can cause you to make knee jerk cut backs that affect long tern goals. An example would be cuts in the budget to develop yourself or your employees. Image for a moment the owner of a sports team cut back on coaching and left the coaching to the team captain. He did save money that particular year but the team did not make it to the finals. For sure all the players knew how to play game but the elimination of the coach was a knee jerk reaction. Similarly in another case the orchestra cut back on the conductor. Everyone can still play music but it is more noise then harmony. So in conclusion having a plan and Milestones will keep you on track, unlock your potential and keep you from making knee jerk decisions that could affect the longer term results.

Let’s talk about the third article about credit for those who know how to ask for it. Contrary to common belief the banks and other institutions are still loaning money. One of the important comments made in the article is that you should “cultivate your relationship with a banker long before you need the loan. Remember the first rule in sales? “People do business with people they like trust and respect”. So it is critical to take the time to build those key relationships with your banker, accountant, attorney and financial advisor if you have one. If you do not, you should start because in business it is important to have your team ready to play when you need them. I have done this for myself and for my business and it has been well worth the time invested.

I trust that the views shared were of value and I look forward to your feedback.

Expect the best Ken (514) 668-2320

The Chess Game of Outsourcing

By Ken Ingram

Cost reduction is no longer the sole reason to outsource. Outsourcing itself has changed. In the past, companies had all the talent, skills and abilities needed to reach the businesses goals and objective. However in today’s constantly changing environment, our capacity to maintain those skills has become scarce.Organizations are evolving at a much faster rate than in previous years in order remain competitive and the most compelling reason to outsource may be for survival and business performance.

When I became a black belt in Six Sigma, many of the employees looked at the new methodology as a strategy not for the purpose of becoming more efficient and competitive, but as strategy to eliminate jobs. Those of us who saw it as a methodology to improve cost and to become more competitive while increasing customer satisfaction were able to increase our value to the organization. By getting involved in the process we became a catalyst and were recognized as change agents.

If a business is not constantly making adjustments and corrections in all areas of the business, it becomes complacent. Complacency leads to extinction even for businesses that have been around for decades. One area often overlooked is the workforce. Unless a consistent effort is made, even people will depreciate. We have to constantly challenge the status quo or risk becoming a part of history.

When you have great people, cross-training can be a solution to the changing business dynamics in lieu of outsourcing. You may already have the right people in your organization but they might lack the knowledge and know-how to become the absolute best that they can be. They may resist change and you may resist change because of the investment. In Quebec, the government offers subsidies of 50% of most mandates to keep your business and its people running at optimum.

Peter Drucker’s ‘Management Challenges for the 21st Century’, he describes how the old paradigms will need to be replaced by new ones. In the book ‘Good to Great’, Jim Collins talks about why some organizations make the leap and others do not.

What is important in all of these concepts and ideas, is that you put them into practice. More than any year in the past, your leadership, teamwork, sales and business development skills will be put to the test.

There are now several things that your organizations may want to achieve and cost reduction is one of them, but it may not be the most important goal anymore. You may be looking for ways to bridge the gap by providing additional capacity and skills that are in scarce supply.