Business Coaching | ActionCOACH

This latest piece comes from a coaching call this past week. I was speaking with one of my clients and the subject of the economy came up. As I’ve talked about recently, for this client, the tide seems to be shifting from, Rising to Receding, particularly in relation to his new business development and sales.

Our discussion focused on improving performance and the topic of luck came up. I’ll be the first to admit that luck is absolutely a part of business performance. And by that, I mean that luck is what happens when the normal course of events, or expectations of results, experiences a sudden and/or unexpected and significant change.

That sudden event, or change, is absolutely neutral. Some people will catch the wave for the change it represents, respond to it, and ride it to gain better results. Others will be caught a bit off guard and react, rather than respond...and make it through. While still others will not be prepared and will fail to react or respond and will be swept under.

So, was that sudden change/event, Good Luck, Bad Luck, Better Luck, Worse Luck? It’s all in your Planning and Preparation.

As much as we would like to believe otherwise, none of us are good at predicting the future. We really aren’t that good at predicting “Black Swans” (and yes, I did steal that from Nassim Taleb’s, The Black Swan!).

We can only control what’s in our control right now. And that affects Planning and Preparation. The more we do when we have the time and opportunity to do them, the better we are able to take advantage of those unexpected moments of luck to make it, Good...or at least, Better, or Less Painful than it could have been.

Anyone who was in business in March of 2020 knows EXACTLY what I mean. The same is true of 2008. And will be true of the next few months to a year.

So what are you doing to ensure that the sudden event or sudden change, the discontinuity or Black Swan event is more in your favor?

You still have time!

And, of course, give me a call if you would like to think out loud for a bit!

The last 2 ½ years have been very interesting compared to the prior 2 ½ (or more), haven’t they?

COVID times were a mixed economy depending on where you were living (pretty darned good here in Georgia, but other places didn’t fare as well) and what business you were in (for example, it was decent for essential services, but not so great for the hospitality industry).

We then went from dealing with COVID to rapidly increasing demand and an improved economy that had to deal with labor and supply chain issues.

And now, inflation, and possibly a recession.

You have probably heard the phrase, “A rising tide carries all boats.” It’s commonly inferred to mean that, “When things are good, they’re good for everyone.” Politics aside, it was difficult to argue that in the couple of years prior to COVID, that was true for the economy as a whole...particularly when we experienced what happened to the economy during COVID, and more recently it’s turbulent recovery (of sorts).

The other day, I was on a coaching call and my client used the phrase, “A rising tide carries all boats,” as a lead-in to describe something quite different from the traditional interpretation of “Everyone is doing well.”

The last couple of years had been quite successful for my client and his company, but he sensed things were slowing down — it had become more challenging trying to price and win potential new projects. He used the phrase to describe the sense of complacency that he felt his leadership/management team were displaying towards the pursuit of new business based on their past success.

So, what is the right imagery when the tide stops rising (or at least seems to be slowing down or turning)?

The phrase that I have used for a long time as the converse of Rising Tide (no doubt that came from my days in the Navy) is, “A receding tide reveals the rocks and the wrecks and demands better seamanship from the skipper and crew.”

As a professional coach, I know there are a range of strategies to use in the face of complacency and increasing market pressures.

Strategies (and expressions) that I like to use:

1. As a leader, raising your level of consciousness in decision making, as opposed to the habitual behavior that we ALL prefer as human beings, is a first step (if you want to better understand that statement, pick up “Thinking, Fast and Slow,” by Daniel Kahneman).

2. Another one of those tried-and-true phrases: “What’s inspected is respected.” Ask your team the type of tough questions that will move them to conscious decision making (and out of their habitual behaviors).

3. Many years ago, my flight instructors would often say, “Keep your head on a swivel.” At the time, they meant it literally, as it related to Situational Awareness while flying. Figuratively speaking, it is about acute awareness of your business environment, and your readiness to take advantage of the opportunities that uncertain times always bring to those ready to act.

My client had already started asking better questions of himself and his team.

My tactical guidance to him:

1. Become granular and consistent in reviewing his team’s progress on new business opportunities. Have a plan for each opportunity and ensure the plan is being worked — “Plan your work and work your plan.”

2. I reviewed with him the system of Green/Yellow/Red reporting of plan progress, and recommended that he include it in his weekly review meetings with his project managers and operations teams (this is what Alan Mulally was known for at Ford Motor Company, and it facilitated his turnaround of the company).

We know that complacency is not a place to be in an increasingly muddled economy, particularly as it seems to be sliding towards more of a recession than any of us would like to admit.

What will you do to improve your seamanship should the tide recede?

Some time ago, I listened to a speaker discussing buying and selling businesses. He referenced two types of potential buyers as, Corporate Throwaways and Runaways.

I must admit that he got my attention, because in 2003, that was a pretty good description of me.

I was probably more of a blend of the two. My employer of 21 years had done a reorganization, and my job no longer existed. I was eligible for (and received) a retirement package, plus a yearlong parachute. That was the Throwaway part.

I also had gotten pretty disillusioned with the company in the last couple of years. As we say, I was burned out. That was the Runaway part.

Throwaways tend to happen when the economy cools off (or turns freezing cold as it did around 2001 and 2010). Runaways happen a bit more regularly.

It's not often that Corporate Throwaways have done the prep in advance of buying a business to become successful right out of the gate.

It's potentially a bit different for the Runaways if they realize far enough in advance that corporate life is not for them. In preparation for leaving, they probably have done some level of groundwork leading up to their departure.

I've subsequently had clients who fit both descriptions.

When I meet a potential Runaway (someone who hasn’t left their 9 to 5 yet), I always steer them towards reading books, hitting various websites (and YouTubes) about business ownership.

And yes, I steer them towards Brad Sugars’ books and videos.

It's a different story for the Throwaways. Their exit is usually sudden, unexpected, and often, undesired. That means, besides buying or starting a business, that they are dealing with processing the loss of career and identity.

Going from being somewhere up the ladder in a corporate career, in a particular discipline, to starting a small business may often be akin to doing a Polar Bear Swim at New Year’s... in Maine!

It's really hard. Not everyone does well. No surprise, right?

And we haven't talked yet about the psychology that a successful small business owner must have versus someone who has been able to navigate a long career in one or more large corporations.

So, what's the message for this month, and anyone in one of these two situations?

1. If you are working in corporate life now and think there is ANY chance that you won't always be there, start taking jobs to gain experience and training that stretches and expands your knowledge and skill base.

2. If you are between gigs and considering buying a business (or starting one), do as much homework as possible FIRST before buying. Check your ego at the door and talk to as many people as possible for advice.

3. If you have already pulled the trigger and bought or started a business, kill your ego... build a support system of professional advisors, as they are absolutely essential for you to survive during the transition.

Last of all, remember that you aren’t alone...there are PLENTY of people who have walked the path that you are on now...SO REACH OUT...ASAP...

Formulas sometimes make things easy to see, that appeared to be complex, because they simplify things. But they can also cause misinterpretation and confusion.

To start with:

“=>” means “creates,” or “results in.”

Systems + Processes => Consistency => Improved Business Performance => Profits

Good Habits => Dopamine => Improved Personal Performance => Profits

Bad Habits => Dopamine => Degraded Personal Performance => Losses

Neuroscience is giving us the proof of common wisdom and helps us to understand why we behave as we do. It's why we often talk about working on ourselves to achieve success first, because the people who work in your business, supply your business, or buy your products/services, are far more complex than what you do to deliver your products/services.

Ownership = Leadership (People) + Management (Systems + Processes)

Ownership - Management = Energized Chaos (Leader-Centric Focus)

Ownership - Leadership = Disengagement, Calcification, Erosion (Manager-Centric Focus)

A Google search of Leadership vs. Management will produce far more results that talk about the importance of Leadership over Management. Going back to the 1970's, it became a pretty popular approach.

Is it valid?

At the time, the case could be made that we were discovering more about the need to better lead people than we had been leading them. The Industrial Revolution that came to fruition in the early 20th Century, depended on effective and efficient management. It tended to focus on The Organization Man, and fitting into the process. Yes, it did make sense as we transitioned into The Information Age and Knowledge Workers to shift our focus more to Leadership and less on Management. Given the complexity of dealing with people (remember the Dopamine equations?), it still makes sense to work to be a better leader... constantly.

Because our people will deliver more and better than ever before, if they are well led.

But is it OK to De-emphasize Management?

Not if you wish to deliver a great product/service (an absolute necessity in a Global Economy, even if you are just a local business). Today, it's too easy for people to switch quickly if you fall short. And it is Management (using Systems and Processes) that deliver that great product/service with consistency. It's how to ensure people know what to do, how to do it, and to guarantee the quality needed when they do it. It's how to train people in ways that don't depend on you as Owner/Leader all of the time.

If you think about it, when a business/organization depends on Management to be completely involved in EVERYTHING to get things done well, it's another name for micro-management. And it limits the scalability of the business, because to get bigger in that environment, there's a temptation for Owners/Leaders to abdicate.

Good Leadership Today = Coach and Develop Good Habits... in Everyone

Good Management Today = Continually Assess and Improve Systems and Processes

Is it a tall order to do both ?

Absolutely! But it's essential if you want to own a successful business today, and tomorrow grow it into a business/organization.

How do I get started?

· There are TONS of books, YouTube videos, podcasts, you name it.

· There are courses, workshops, webinars...keep naming it.

· And, of course, there are trusted advisors, and coaches.

· So, get started with doing something!

Take ACTION NOW!

“We choose to go to the Moon in this decade and do the other things, not because they are easy, but because they are hard; because that goal will serve to organize and measure the best of our energies and skills, because that challenge is one that we are willing to accept, one we are unwilling to postpone, and one we intend to win, and the others, too.” — John F. Kennedy

On July 21, 1969, Neil Armstrong, a U.S. astronaut, was the first human to take a step on the Moon. “That's one small step for man, one giant leap for mankind,” he said as he bounced across the surface of the Moon.

This incredible feat of human ingenuity and bravery set a new course for the world. Within less than a decade, humanity had not only orbited the Earth but made multiple Lunar landings. Challenged by physics, technology and the consequences of failure, scientists, engineers, and astronauts set forth to make history (and I’m not forgetting the Cold War aspects of the Space Race, and the efforts and results of Soviet Cosmonauts which helped fuel the rapid progress achieved in that decade).

Consider the challenges and obstacles (and competition) we face every day in our personal and professional lives. None are as daunting as putting a man on the Moon. Are we putting our challenges into perspective and ensuring we don’t allow the small stuff to get in our way?

For many of us (me included), the Astronauts of the Lunar Age had the Right Stuff. They demonstrated the tenacity and fortitude to achieve the impossible.

As a business owner, are you helping your team to see the possibilities and helping them to find their way through the chaos that can occur?

So, what about this, Be X Do = Have stuff?

Have is about your dreams and goals, knowing what it is you want (and why you want it).

Do is about changing your personal behaviors (yours and the people on your team) and systems / processes in your business to achieve what you haven’t yet achieved (that’s the Have again).

Be is about growing yourself (and your team) into the person / people able to

Do those new things that get you what you want to Have.

You’ll never change what you Have now, and achieve more in your life and business, without growing yourself (and your team) and doing things in different and better ways, than you have up to now.

I grew up wanting to be an astronaut. I never became one, but I did become a US Naval Aviator along the way (Naval Aviation was a starting point for many astronauts). So no, I never made it into space. But becoming a Naval Aviator got me into places I never dreamed of when I was growing up.

Set some goals and go after your dreams... they'll take you on quite the ride...

“I don’t want to come across as a Micro-Manager, but…”

I hear that opening (or something like it) at least once or twice a month from clients. I also heard it in my corporate days from my management team (I even said it to myself a few times!).

Management has gone from something of admiration (the writings of Peter Drucker illustrate that view well) to something that took second place to Leadership (a very debatable point, but too much to get into for the purposes of today). And that’s when we started talking about the Micro-Manager, the most noxious form of Manager (vs. Leader). Ever had the Micro-Manager guilt bomb dropped on you by someone?

Is being a Micro-Manager Truly a "Bad" Thing?

Before I go any further, let me be clear. Exclusive Micro-Management of your team IS a real problem. But there are times when just providing close supervision of tasks being performed, with your team accomplishing them, IS the right approach. Sometimes, some things MUST be done right and on time.

Back to my clients. I usually talk with them at this point about Situational Leadership, and when close supervision makes sense (you can do an online search for more details). Here’s how it applies: Think of new employees, or new skills, or new tasks, or an existing employee to a new position in the company, or new policy procedures and protocols. I think you get the idea. New DEMANDS a level of closer supervision for a period of time.

There is a lot of training involved when a new hire joins a company AND must learn new job duties. Many people understand close supervision is going to be required. Often, new employees are motivated and appreciate an extended hand to help.

But we often discount that newness factor when someone comes to us with task experience, or when they have been with the company and move into a higher position with unknown duties to perform. In fact, we might even forget about them (Gerber talked about that as abdication in his book, The E-Myth Revisited). At the very least, our company’s formal and informal cultures, ways of doing business, formal and informal structures, are NEW to them compared to their prior positions in other companies (how quickly do things Go South when someone doesn’t “Get” the culture quickly enough?).

So, some Micro-Management is OK, Abdication isn't OK, Situational Leadership can help... How the heck does this work for me?

What’s the solution? The Micro-Management issue can arise when people are new to the task, or the company, or the position. The challenge, and opportunity, is this: one that is constantly moving along a continuum of management focus (on results) and leadership application (support of people).

Recognize that you are operating on a continuum. As task competence, or company, or position experience develop, your approach must shift from strong task focus to more person and individual focus — Leadership and Emotional Intelligence. And as is true of all continua, one may move back and forth, up and down, before some stability is attained.

It is especially critical in a small business, because everything is visible to you as the owner, to your team, and usually to your customers/clients. To create the right mindset, I’ve started saying to people that necessary Micro-Management must be balanced by appropriate Micro-Leadership. That is, BE appropriate for the moment, in the moment.

As you’ve no doubt gathered, I’m always happy to talk about Leadership and Management. Let me know if you would like to continue this conversation!

My younger son Dalton, has just completed Navy Nuclear Power Training. In February 2020, he went to Boot Camp and it was unlike any other Navy training, once COVID-19 entered our lives (he’s going to stay there, as his new orders are to the school, as an instructor in his specialty).

His training was among people who were younger by six years (or more). Why was that the case? Dalton had completed college and had worked in a management role for about three years before going into the Navy. His training peers were mostly high school graduates with perhaps a few years of college.

They were learning and applying incredible amounts of information, which was required for them to work on the nuclear power plants of submarines and aircraft carriers.

Although Dalton absorbed the comprehensive information quite well, what really stood out (compared to the other members of his class) was his WISDOM.

Dalton’s experience showed up, providing advice, and demonstrating leadership on a regular basis — most of the time he wasn’t formally asked (and as many of you know, I too was in the Navy and do a bit of experience sharing with him whenever we’re able!).

We can acquire knowledge, but wisdom is a product of the experience of life and business. Much of the wisdom we gain comes from our own experience. But we can also tap into the wisdom of others.

As human beings, our ability to remember, consciously think, and effectively communicate gives us a massive advantage compared to every other creature.

Sometimes we want to go it alone, and other times we want to use the help of others. We can grow from doing both. The more systematically we can employ others to learn, and more importantly, to share the wisdom that comes with experience, the faster we can accelerate the growth of ourselves, our teams, and our companies.

· How often do you set aside time to consolidate the Lessons of Your Experience for yourself?

· How often do you reinforce those experiences by sharing them with others?

· How often do you accelerate your own growth by talking with others about the Lessons of Their Experience?

If you aren’t doing any of these things, how much potential growth are you missing out on?

The above phrase can be attributed to a LOT of different people. I suppose it’s because it’s such a simple truth.

Traditionally, December and January are the months that we have done our planning for the coming year (unless you were really motivated and started preparing in November!).

Let’s step into The Way Back Machine (yes, I am still a fan of the 1960’s cartoon, The Rocky and Bullwinkle Show!). It was one of the first programs that targeted parents as much as their kids. Two years ago, we were coming off a strong 2019 as we laid out plans for 2020. A couple of months later, every one of those plans changed to, “We need fourteen days to flatten the curve!” OUCH!

One of the first casualties of COVID-19 was our long-term planning, right? The 2020 plan went out the window, and suddenly we were rolling into, Thirty Day Pivot Planning, reacting in an environment that was a moving target and trying to survive. That is, if we actually did the Pivot Planning and successfully reacted. Unfortunately, a lot of businesses didn’t (or were unable) to get past the immediate challenge of surviving COVID-19.

Just one year ago, we put COVID-19 shots into our 2021 plans and dealt with reopening a society that we didn’t think would go back to EXACTLY the way it was (but we were hopeful).

Holy Cow! Was that ever off base!

More unexpected changes were waiting in the wings, such as a badly disrupted supply chain, labor shortages, increasing inflation, etc.

Will planning (long, middle, or short-term) ever matter again? You’d better believe it!

“Plans are worthless, but planning is everything.”

— Dwight D. Eisenhower, Leader of the D-Day Invasion of Europe and the Western Allies in WWII.

The purpose of planning is not the actual, finished document that’s produced. It’s about the thinking and discussion that goes into building a plan that produces the value. What really matters is the anticipation of what to do moving forward. It's being able to know how to pivot quickly for the planning and contingencies that can be provided if something starts to go south.

If you haven’t built a plan for 2022 yet, it’s not too late. And it’s especially timely to build one for the First Quarter — one that lets you think through the Marketing and Selling that you want to accomplish, the changes to your Operations that you want to make, and the People that you want to hire and grow, (that will keep you or get you back on track) to what you want to achieve for your business.

Need some help or guidance? Let me help! Call 770.649.6730.

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