In recent times I have been exposed to a number of companies in various market segments and they all are questioning the future of business, the economy, the lack of trust and confusion from Canberra and inability to predict the short term business climate.
There is so much negativity in the press, not helped by journalist looking for senational stories and writing without really understanding the facts or the sniping between rival media giants.
There is no doubt in my mind that, for business to survive, you must have a focus on some essential strategies such as a culture for innovation, low cost manufacturing, staff who are engaged and who understand what the vision is that everyone is striving to achieve. And, a product or service that fills a need in the community
The real key is the Vision. Once you can clearly articulate a Vision that is achievable and believable then it is strong and effective leadership that will guide business success.
A leader in any situation who cannot win the hearts and minds is bound to fail. An effective leader has to influence behaviours and, according to some, there are two ways to influence human behaviour: you can manipulate it or you can inspire it.
A great leader commands and not demands respect. The successful companies I come across in my work are those who understand the value of vision driven by leadership throughout the organisation. I often refer people back to the work of Kouzes and Posner who wrote their Ten Commitments of Leadership nearly twenty years ago and holds true today. The key practices as mentioned them are well worth repeating as the attributes of practices of exemplary leadership.
Challenge the process:
Insiring a shared vision
Enabling others to act
Modelling the way
Encouarge the heart
There is no room for egos or silos within a successful business. It's 2012 not the 1960s. There is no more damaging leader than one who will not take advice or accept that they have to keep learning themsleves.
Over the last month I have travelled over 2000 kilometres around country Victoria and I mentioned in a previous blog my angst with the activity, or lack of it, in the main retail strips in country towns.
In the workshops I have been facilitating in country regions the question of buying on the internet always gets into the conversation and when I ask who has bought off he internet in the last three months nearly all hands go up. Yet when I ask who has a formal internet strategy and a professional internet site that is in sync with their business, you hardly see a hand go up. Why is this happening ?
If you have a business of any kind and have not made a real effort to understand how you can use the internet to grow your business you have no one to blame but yourself. I bet you that someone in a business similar to your's in some place around the world has developed and implemented a strategy that is successfully in building an online presence and growing their business.
Your generation Y customers are now more interested in going to a gym and /or drinking at a local coffee shop than they are in going shopping in a bricks and mortor store. Where I live in Albert Park/Middle Park in Melbourne the coffee shops and eating places are packed. Their customers are not shopping in the local shops as they do that on the internet.
If you want to really get a handle on what people are buying online go the nearest Australia Post parcel depot as see the volume of parcels moving through the facility.
One prime example for me recently was trying to book motels in country towns. The web sites range from crappy to good. No wonder I drive pass lots of motels that have very few customers. If you are like me you do your research online first before making a booking. The I usually book through whatif.com.au
Your internet site is your gateway and fist impression to thousands of potential customers.
Finally , it does not end with just web site , its the whole jigsaw. vidoes, facebook, twitter etc etc
This has been another week where the press is covered in stories about companies putting staff off.
So, it was refreshing to attend a breakfast briefing this morning put on by Matthews Steer, Chartered accountants and hear a successful private business owner tell his story. This family business, is in high-tech engineering and surface coatings.
They survived the impact of the last four years without having to put one person off and, in fact, employed some new staff. They had a typical successful family business attitude that their staff come before higher profits. The family believes that persistance is the key ingredient to their success and decided to just work harder to get through tougher times.
They understand the value of innovation, partnering with institutions such as universities and the CSIRO and seeking outside assistance where they have identified a weakness.
Finally, judging by the presentation I heard this morning, they understand the vital leadership attribute of humility.
I was involved in a discussion today about culture within a business or a Not For Profit and the question revolved around who drives and/or leads the culture within an organisation.
As usual, this monthly group had some different points of view. That's fine because it makes for a robust discussion and enables us to consider different aspects instead of having a one-sided debate. The real question was what role directors play in influencing a culture that ensure success.
I once saw a great definition of culture that stated Culture is what people do when no-one is looking. I believe that the culture within a business needs to be pervasive as everybody embraces the principles that make a business standout from the crowd. It the way people in an organisation behave, their over-arching beliefs, the unwitten rules, the respect for each other and the ability to work towards a common and shared objective.
I also personally believe the standards are set from the top of the pyramid in a traditional heirarchy type business structure and the directors must be more involved in the business in way that they can see and understand the behaviours and actions at grass roots level. After all that is where our customers experience the culture within a business. Just as the Chairman of board can set the standard for board effectiveness, the CEO sets the standard for the management team who in turn can make or break what filters through the whole organisation. A poor CEO will result in a poor culture throughout. Therefore the Chairman has a responsibility to manage and mentor the CEO as well as the board.
Two reference points worth looking at is a book titled The Maverick written by Richardo Semler and the other is a book titled The New Gold Standard by Joseph Michelli. The first will challenge you on a different business model and the second will explain how The Ritz-Carlton Hotel Company have a culture of customer service that is ledendary.
In my experience, over a number of both large and small to medium businesses, the great ones are those that have been successful in winning the hearts and minds of all employees and everyone is on the same bus heading in the same direction. They don't need to be told or micro managed. Everyone just does it.
You put a frog in a pot of boiling water and it will jump out. Put it in a pot of cold water and then gradually turn up the heat the frog will eventually boil to death.
This is how I relate to most of us with regard to having regular health check ups. We go along putting up with the minor creaks and pains and before we know it - Bingo , a heart attack. The same applies to bowel cancer, without regular checkups we wake up one day in pain, go the specialists, have a colonoscopy and find we have bowel cancer.
This is so for those over forty. You would'nt let your car go without servicing for a couple of years yet this is the way you treat your inner health, you never get it serviced.
As someone who believes in acting the minute something sounds or feels wrong, I would have had open heart surgery by now if I had not noticed a minor change in my efforts at the gym a year ago. One of my sisters would still be with us today if she had gone to the sepcialist when she first had pain. No, she was a nurse and knew better. She chose to ignore it, thought it would go away and she died too early. Again, I would have had the same issue had I not had regular tests.
You are no use to your family and your business if you are out of action due to your own stubborn atttude and do have regular check ups. I don't mean just going to your GP, go and have an echo stress test on your heart, have a colonoscopy, get you skin checked by a specialist, have your eyes checked, get your hearing checked and measure your various blood levels for potential early warning signs.
If you don't then your are not only a dill, but also selfish. Just make sure your life insurance is paid up.
Late last year Grant Thornton published a paper on private food companies in Australia. For me, the key issue that came out of that survey is that innovation is a core success factor in growth and profitability.
I often see private companies who have their head in the sand when it comes to taking a proactive stance on innovation. They believe that what has worked in the past and been successful will get them through in these ever changing times.
Jack Trout wrote a book that should be a must read for all business owners. It is titled Differentiate or Die although written in 2000, it is even more relevant in today's highly competitive business world. The only difference is the impact of the web in 2012 an some of the examples mentioned are no longer in existence due to mergers , takeovers etc.
Consumers are faced with thousands of choices on a daily basis. They research on the internet before making a purchase and are able to access product from all over. For example, my daughter is expecting her first baby next month and I have watched with interest how nearly all the new baby gear has come via research on the internet.
Innovation has to be part of your DNA and be a constant core activity in your business. Your competitors will copy you and that requires you to be leading the way. My experience is that the greatest change is in packaging and making convenience king.
What are you doing to ensure your clients will chose you and your products over your competitors ? If you have an advantage now, is it sustainable ?
Just look at McDonalds menu today compared to ten years ago and their sales are still growing.
This photo was taken after last year's flood in Ipswich. If this was your business would you survive and be able to recover ?
The building belongs to the Peter McMahon Swim Factory, a successful swim centre for kids and learners. Back in 1974 Peter's father also operated a successful soft drink company from the same site and it was completed flooded in those at that time as well. It took a long time to recover from that closure in the middle of their peak sales season.
So, this time around Peter knew to prepare and removed all his motors, papers. computers etc out when he saw the signs that a flood was heading his way.
Pre-planning enabled him to recover quickly and be back in business within ten days. The reseach says that 80% never fully recovery from such a disaster.
Where is your your recovery plan ? Contact us if you want some help in developing a business continuity plan.
On Jan 24th we start a series of workshops to assist business owners on how to start planning in advance in case they are hit by a natural disaster such as a flood, fire or storm.
We know that 80% of business never fully recover from a natural disaster and planning can greatly help in reducing the impact.
Funded by the Federal Government through Enterprise Connect there are eight workshops being held in Ballarat, Horsham, Mildura, Kerang, Colac, Dunkeld, Warrnambool and Bendigo.
That's the headline in today's Financial Review. But I do not see such headlines for private companies.
My information is that there is major restructuring going on in the banks and Insurance companies across Australia. We also see adverse headlines for the major retailer groups and their plans to close stores.
Every month I meet with 24 business owners in two forums where we discuss issues impacting on business performance and there is no talk of redundancies from any of them. In fact they are having trouble finding staff to meet their business growth. There is a disconnect here somewhere.
It will be interetsing to see where these white collar employees end up in the future and its the older employees who are going to feel it most. People I know who are over fifty and made redundant are taking many months to find employment again. My advice to anyone working for a services company such as a bank or insurance company is to develop new skills. Don't be caught with a single skill set.
It is private business who will eventually employ most of those who lose their job in large companies. This should be an opportunity for private companies to find people who are looking for a challenge in their job.
A key issue for private companies is the ability to operate in a business environment that encourages employment.
There is no doubt that business owners are confused by what they read in the press regarding the current rumblings around the Fair Work Act. I have yet to come across a business owner who understands how the wage rates pertain to their industry or work place. In fact most are paying above award wages due to market pressures and hoping that have the right rates in place. The place to start is to join a reputable Industry association such as the VACC or a group such as VECCI. Use the extensive services they offer to members.
Comments
Post has no comments.