4 Ways to Make Your Executives Fail

Last week, I shared some of the insights that Bea Wolper, entrepreneur and lawyer focused on family businesses, shared with my class. An area of special interest for Bea is how succession happens well (or not) in family businesses. She shared the four critical steps for succession (which is rarely seamless) to happen well. Upon discussing this with some of my students, it dawned on me, that this is just as applicable to startups and non-family businesses as well. And not just in a founder or CEO transition, but for any major role in a business – such as HR, Marketing or Sales heads. 

  • Ownership In a family business this is usually a controlling interest. In a startup or other enterprises, this is equity with the potential for significant upside. As Bea pointed out this is the easiest to “do” – you sign a piece of paper and it’s done. This is however only a necessary condition and not sufficient. If you do this alone, it is almost always going to result in failure.
  • Knowledge Change is never easy. Having a new person in charge without equipping them with everything that your organization and you know is dooming them to fail. This ranges from how things are done, who does them, how they are done and why they are done (or not) the way they are. I have walked into marketing positions, with nary an introduction to existing customers, current prospects and can tell you it’s not fun. Successful organizations, debrief and even put together a “Bluebook” of everything the person leaving the position knows for their successor. Ideally, you have a team, including the person presently playing the role do an ongoing knowledge transfer for the successor.
  • Relationships The old cliché “business is all about relationships” is true. So formally introducing the new person to key employees, key customers and of course key business partners—starting with bankers, component suppliers, channel partners is vital for success.
  • Authority This is where the rubber meets the road and even well run companies stumble. When you promote someone or hire someone new, but other employees still come to you or their old boss or colleague, you’ve not handed authority. Most times the founder/entrepreneur is the problem (or “Dad” in the family business) when he is not willing to relinquish his authority. So the new person while having the title has little or no actual authority – or what he has is undermined by others.

As you can see any one of these, even when you’ve done the other three well can cause your executives to fail. I’ve been guilty of violating every one of these, at one point or the other. Which ones have you not been giving adequate attention to?

7 Simple Tips for Success from an Entrepreneurial Lawyer

One of the joys of teaching is the opportunity to invite guest speakers who bring their experience and insights alive for the class. The speakers have the added advantage of being a “guest” lecturer and their message not only sounds new but resonates well. I was fortunate to have Bea Wolpert, an amazing entrepreneur, lawyer and woman leader.  Over an hour, Bea in her inimitable style—reality laced with humor and self-deprecation—shared her own experience as a lawyer and entrepreneur as well as the stories of some of her entrepreneur clients. I realized her stories and insights serve well as advice for most prospective and practicing entrepreneurs. Here they are

  • Purpose Be purpose-driven – It’s well worth figuring out what are you passionate about. Pursue that passion rather than money alone – be it dog-walking, raising Labradoodles or being a chef or lawyer (all examples she illustrated)
  • Relationships Work on building authentic relationships – these take time and will pay off in spades
  • Give forward Focus on giving something of value first – people will automatically seek more and become customers. This could be a blog, seminar or webinar, free consultation, or samples at farmers markets – make it easy to buy from you.
  • Sales Recognize your job is selling – not just being a chef, designer, lawyer and learn to become good at it.
  • Numbers Business is about numbers – so the more you learn to understand numbers – costs, profit & loss the better off you will be
  • Commitment Be all-in. Don’t expect a bank (or anyone else, except a parent possibly) to fund your company or you, if you are not willing to be all-in and
  • Plan Whether a business plan for a bank, succession plan for yourself or a marketing plan for the company, planning is both important and will help.

How Do They Do It? Secrets of Great Storytelling

Twenty-five years after publicly announcing it, at a party in Cupertino, I’ve finally begun to work on my first mystery novel. The visit to Hampi, which ironically I did many years after I had visited Pompeii, was the catalyst to set my murder mystery in early 16th century Vijayanagara. If you think making daily sales calls is hard writing every day is harder still. And I’m not even talking about writing well, just putting words on paper.

As entrepreneurs, we have to be storytellers. Don’t get me wrong, I’m not talking about making stuff up. Each day, whether we are trying to hire a new person, motivate an employee who can’t see the light at the end of the tunnel, persuade an investor to make a bridge investment or trying to get a customer to buy or better yet pay us an advance, we are trying to persuade others. Make no mistake, persuasion is selling. In a manner of speaking, we are all sales folks. The sooner we accept it, the sooner we can get better at it.

It’s no accident that the best sales folks are good great storytellers. Here’s the good news, like most things storytelling is a learned skill. With a little attention to how others do it and a good deal of practice, we can all get better at it. November is National Novel Writing Month (NaNoWriMo) – and there’s no reason you can’t make a resolution or start a new habit on the 1st of November. Make improving your storytelling skills a goal. Notice I say improving, for we are all natural storytellers. Any time you’ve tried to lie to your mom, or a friend or fudged the facts with your spouse (none of which you’ve ever done of course!), you were telling a story—not necessarily well. Let’s get started. One of the simplest and most fun ways to do this is to join a ToastMaster’s club near you. Your storytelling will get better (mine certainly did) but at the very least you’ll make some new friends. It never hurts to have a life (and a few friends) outside of our businesses.

To make things easy for you, I’m sharing one video (below) and one article.- Get rolling.

Storytelling in a corporate setting – 11 examples

 

2 Tools That Will Improve your Effectiveness as a Marketer

Every year I try to learn something new – be it a skill, a tool or just some facts. 2018 has been a time of great learning, thanks to my daughter, I wanted to share two tools that I’ve learned about from her and since put to good use for myself and customers.

  • Canva, as my primary online visual design tool – from making Twitter or web post headers, webinar announcements to trifold brochures and even eBook cover design, this has been an amazing tool where every day I’m discovering more. Here are some examples

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  • Tableau as my data visualization tool has similarly been a much used for not just number crunching, but being able to create excellent visualizations as well as insights that aren’t always self-evident from staring at the data in Excel.
    Here are two examples

Visualization of Girls Toilets Availability


The kicker is, both of them are available online, easy-to-use and you can get started for free. They also have great online communities that can help you get up the learning curve fast. So give them a spin today and share your own favorite tools in the comments.

4 Simple Things Startups Can Do to Retain Employees

Earlier this week I read at least two articles that spoke of how startups in India are having a hard time retaining their employees. One spoke of startups now having higher employee churn than Business Process Outsourcing (BPO) firms!

The article asserts “The reason for this high churn rate is that young professionals come to startups for all the wrong reasons.” While understanding why startups, particularly in India, are having this employee turnover problem is important, it’ll have to wait for another post. What should startups do to retain the employees they already have?

As Lao-Tzu (or was it Confucius?) put it “When the student is ready, the master will come,” my daughter shared this video by Amy Cole, CEO of Amy Cole Connect, on 4 Tips to Retain Your Talent. For those of you who are too busy (really!) to watch the 2.5 minute video, here’s the TL;DR version

  • Excitement – are you exciting your team members from the day they come on board? Many simple things can make the job and your company exciting – do it!
  • Engagement – how are you engaging your team – making their job meaningful and laying context rather than assuming they’ll stay motivated and engaged
  • Encouragement – are you explicitly encouraging them – from paying attention to active inputs, are you helping them grow and not taking them for granted
  • Empowerment – do you trust and provide them flexibility, as long as the work get done? Are you all about control and not empowering them?

Is Your Business Hurting ‘Coz You Confuse Marketing & Sales?

There is no greater impediment to the advancement of knowledge than the ambiguity of words. Thomas Reid

SALE

Photo credit: Gerard Stolk (vers Noel)

The trouble with most of us who speak in the English language is that we assume that people actually understand what we are saying. This last semester, as I set out to teach a course on International Marketing, I happened to ask the class casually, “How many of you understand the difference between marketing & sales?” The faces,  more than the raised hands, clearly communicated the confusion over the two. So as I set out to clarify the difference, I learned a thing or two and reckoned I’ll share that with you.

Let’s get the basics out of the way. And in the interest of not reinventing the wheel, I’ll share what I reckoned was a good definition from Diffen.com. As they summarize it

Marketing The goal is to generate awareness and interest in the product/service and create leads or prospects, by influencing the perception and behavior of the target customer group.

Selling is focused on converting prospects to actual paying customers. Sales involve directly interacting with the prospects to persuade them to purchase the product.

This means the activities done by marketing and sales can be quite distinct

Marketing
  • consumer research to identify the needs of the customers
  • product development – designing innovative products to meet existing or latent needs
  • advertising and digital marketing the products to raise awareness and build the brand.
  • pricing products and services to maximize long-term revenue.
Sales focused on converting prospects to actual paying customers. Sales involve directly interacting with the prospects to persuade them to purchase the product.

So far so good. Now that we are clear about definitions, does this help us figure out when does your business require marketing (or sales) and how much of it does it require? As we set out to answer this for some examples, I realized that there was some nuance to this, especially when it came to a matter of

  • target customers – are yours’ consumers or other businesses
  • sales channels – do you sell direct or through channels

Of course, neither of the above is an either/or answer. You could have both consumer and business sales (think airlines, catering or training classes) and could be both direct or channel (advertising, over-the-counter medications).

While the role of marketing remains building awareness and generating demand – its relative contribution and nature of activities depend on which of these combinations your business falls into. With the rise of internet and e-commerce, certain categories of consumer-targeted businesses can operate without any sales force at all. Similarly, business-focused sales channels, which are businesses themselves such as aggregators or distributors, rely primarily on the marketing of their principals to drive demand. Even these folks have to market themselves to stand out from their competition.

Here’s a useful framework (and some examples) to think about this. What is the product or service you are selling and to whom are you selling it and how will you sell it to them? And what marketing will be directed towards whom? And what sorts of sales activities and personnel will you need to meet your goals?

Market_Sales_Channel_Customer

Here are two different examples of companies that sell primarily to consumers (airlines, cars) or businesses (Facebook ads) and what they do for sales & marketing. Of course, all these businesses serve both consumers and businesses to varying degrees.

Delta_Facebook_Mktg_Sales

I’d love to hear how this looks for your business. Happy hunting.

References
“Marketing vs Sales.” Diffen.com. Diffen LLC, n.d. Web. 18 Aug 2017.< http://www.diffen.com/difference/Marketing_vs_Sales >

Yet Another Tip To Make Decisions Faster

In an earlier post, I’d shared the insight that separating WHAT it is you want to do (your decision) from WHEN you’d implement it can make the entire decision-making process easier. The human mind, certainly mine, fickle as it is, finds numerous ways to avoid making decisions. Take the case of wanting to quit your job, which seems a perennial favorite with young aspiring entrepreneurs.

WHAT: I’d like to quit my job – I’m sick and tired of it and want to do a startup.

BUT, how will I let my family/wife/significant other, know? The thought of having to convince stakeholders, especially if they are family – who we fear will not be receptive or supportive – puts the kibosh on even making the decision.

So step back and recognize the WHAT of a decision is the most important – and neither the WHEN will I implement the decision nor HOW will I implement the decision should come into play, while trying to make a decision. Of course, they are relevant such as

WHAT: I want to fire that guy who’s being a jerk to everyone else

HOW: Talk to him, if necessary with HR present. Ask him questions on how he perceives his own behavior. Provide him feedback on what you’ve observed. Put him on a 90-day improvement plan.

WHEN: By June 30th of this year

As you can see the HOW may require a fair amount of work – may involve others and will definitely influence the WHEN. None of this should put off making your decision – WHAT it is you want to do.

 

Yes You Can Handle Marketing Disasters Better

thumbing_nose

Photo: Very Giorgious

For marketers and leaders as communicators, these last few days have been a textbook case of how NOT to handle something. As one creative twitter user put it

I’ll admit playing Monday morning quarterback is easy. Yet the PR fiasco of how United (and it’s CEO) handled communication with its customers, employees and the world at large, could have been avoided with a touch of personal authenticity and a little faster. And the White House spokesperson Sean Spicer’s own travails could have been averted, with a little more care, and just taking some additional time before hitting the SEND button. (For those who missed it, three separate clarifications – stated, re-stated, re-re-stated, within a matter of minutes before a full-blown apology on cable television)

So what lessons can we draw as leaders and communicators

Be authentic
How would you act if this happened in person? If someone tripped over your leg or you happened to push them at the post office or at a crosswalk? Despite the litigious society we live in, most reasonable folks would inquire after the other party, “Are you alright?” Covering for the company or your own rear with corporate speak such as “I apologize for having for having to re-accommodate these customers,” and then blaming the victim “…he refused and became more and more disruptive and belligerent” are both neither good nor smart.

Be timely
United’s CEO finally a full day later made this statement, “I deeply apologize to the customer forcibly removed and to all the customers aboard. No one should ever be mistreated this way.” What a difference offering such an apology front would have made! In many ways, Sean Spicer’s apology at the end of a relatively disastrous day in which he made comparisons between the Assad regime and Hitler, was a good example of a timely and unequivocal apology. Unfortunately, in his case, his past flubs and history of misstatements likely undercut what otherwise appeared to be both genuine and textbook case of public contrition.

Be deliberate
As earlier attempts at clarification by both United’s CEO and the White House spokesperson demonstrated, little thought or deliberation seemed to have gone into their response. In Spicer’s case within 30 minutes, he sent three clarifications on what he had attempted to communicate with his Hitler comparison, with each further muddying waters. This was a clear case of not stepping back before hitting the SEND key. Deliberation does not mean delay or not timely – it primarily means the application of your mind – invariably it means not doing things as a reaction or in the throes of strong emotion.

In summary, acting in a Timely manner, while staying Authentic and being Deliberate in our actions is important for our communications to be effective. Think TAD!

Values – Putting Them Into Practice

Culture in organizations has been a favorite topic of mine for many years.  The recent discussions of harassment in Uber and Thinkx or the management style of the Trump Organization are all rooted in the underlying culture of these organizations. Most organizations have a vision, mission and even set of values identified – and even displayed in public place. Yet, like many of our own new year resolutions, shall we say, there’s often a gap between what’s stated and intended and the reality employees, customers, and partners experience. So how you build the culture you seek in your organization through a set of values.

Dan Rockwell (aka Leadership Freak) whom I’ve followed religiously for several years now, shows a simple yet effective way to put your values into practice. Such a practice will help you build the culture you seek. Here’s the bulletized version of Dan’s method (I’d call it the 3As) that he discusses in the video below.

  • Articulate your value
  • Act on that value – such as in a specific behavior
  • Applaud the behavior – recognize and highlight when people act on it

Decisions – A Secret to Make Them Easier

“Do you think I should just quit?”

This is a question that comes up with surprising frequency. It’s not just prospective entrepreneurs who ask such questions.

“Should I fire him?” is another one I get asked frequently. This is often with a high-performing but a hard-to-get-along employee.

As leaders, managers, and individuals we are constantly having to make decisions. Decisions, that all too often don’t seem easy to make. They may have too high a cost – one that makes it daunting, even if it’s a simple Yes or No decision. Some would argue there are no simple decisions, especially when it comes to matters of people or organizations. And when a decision is hard to make, we invariably postpone it.

Rarely does such procrastination make things easier.

One simple secret to make such decision-making easier, is to separate the what from the when.

Most people, conflate what they intend to do (“the decision”) with when they will implement the decision.   In other words, if you decide to quit your job, when do you have to give notice? The thought of giving notice, is itself daunting and keeps you from making a decision about your job. The moment you recognize that these are two distinct things – “Should you quit?” and “When should you quit?” – you will find it easier to make the decision about your job.  This works from the simplest “Do we go on a vacation?” to “Do we fire this customer.”

Try it today and let me know how it works for you.