Does "playing by the rules" or 'best practices now mean your buisness will fail?
It's not that you have to break the rules as much as it is not using them as your business model guideline. --Jack D. Deal
October 24, 2009
February 12, 2009
Sometimes you have to stir things up a bit...
Ok...you have a business or are a professional like many others in your local competitive area. If you don't stand out you look like a commodity. If you are a commodity, you have to compete on price...market price.
Why would you want to continue to do the same sorts of things and get the same results? or in down times...worse results?
I recently compared to different towns with different demographics and different philosophies. Both are exposed to the downturn, but one is hanging its head and business is down while the other is making lemonade out of lemons and actually doing better.
If this can happen on a community level, could the same happen on a regional, state and national level?
One owner in the depressed mentality community said things are tough and one just has to grit things through...
An owner in the upbeat community said times are slow but now is the time to do all the upgrades and improvements one doesn't have the time to do in better times...stay active and positive.
Which attitude is better?
February 11, 2009
Try to redesign your product and service to become more unique and less of a commodity
It's not that hard...at least for most products and services. If you can find a twist or angle that makes your product/service stand out, you can gain a substantial competitive edge. Use your creative powers to make what you do unique and you can sell over the Internet or have customers and clients come from outside your market area to buy your goods and services.
If not, then you simply are another commodity and you will have to compete on price.
February 07, 2009
How to go 100% paperless in the digital age...
Almost there. Like most things the last few steps are often the hardest ones. The printer and fax are long gone...so are the brochures, envelopes and letterhead. The past few weeks have been agonizing without business cards though business cards are a type of 'crutch' and get thrown out with the regularity of junk mail.
One full week without business cards has been a bit traumatic but doable...it's been more mental than physical. Also by changing the mail address I'll stop what little junk mail has been still filtering down to the business...it's virtually impossible to stop entirely even in the digital age. So by changing addresses and stopping all print publications the goal is almost there. By the end of the month I'll be both physically and mentally paperless...and down to emailing invoices and saying 'google my name'...
Who says it's impossible to go 100% paperless?
December 16, 2008
How can we show conservative revenue estimates and yet show investors great profit potential?
Ah, therein lies the art of creating the image of success. Sometimes the numbers just can't be stretched reasonably beyond a certain point; if you go beyond that point you simply look foolish.
The other thorny point is scalability; if it doesn't scale, it can't be wildly profitable and there is little potential.
The key of course is to have both conservative numbers and realistic scalability; low risk, high reward.
November 11, 2008
401ks, Stockbrokers, Declining Verticals, 'Spare Change' and the 'We' in Collectivism
 | jackddeal tough to see good, hardworking blue collar folk losing their 401ks...what dream? time to move to the jungle in Mexico...ha...funny? | |
| | jackddeal a great biz could be 'tin cups'...ha...don't laugh to hard...groan... | |
| | jackddeal from my biz perspective, all verticals are declining...except for management consultants and search marketers...ha... | |
| | jackddeal will 'change we can believe in' be replaced by 'spare change?' ha...don't laugh...groan... | |
| | jackddeal yet still the cry from stockbrokers..."buy, buy, buy"...ha...what's GM at? It can't go to zero, can it? ha...groan. ha and groan... | |
| | jackddeal an amazing biz page in today's paper: Circuit City, AIG, DHL, Starbucks, GMAC, GM...enough to drive an investor to drink, no? salud! ha... | |
| | jackddeal American Express is becoming a bank, Circuit City is belly up and the U.S. taxpayer will pay trillions to 'fix' the meltdown... | |
| | jackddeal "say goodbye to the USA as a sovereign nation being surrendered to the spirit of the 'we' of collectivism"..and the free and inquiring mind? | |
| | jackddeal SJ Mercury News had a letter to the editor calling us the USSA: United States of Soviet American...ha...that's funny, no? no? ha... | |
| | jackddeal those that can, do; those that can't, legislate...ha... | |
| | jackddeal maybe GM could take out a loan from the autoworkers union...no? ha... we don't need any stinkin' hybrids...ha... | |
| | jackddeal the politicos and guvment are up to bailing out everything that is not nailed down...except for little ole us...ha...groan... | |
| | jackddeal GM stock at 50 cents right now...and who said Americans are weak on management? ha...more SUVs anyone? ha... |
September 05, 2008
Why Just Any Old Strategy Won't Do and What Does Uppity Have to Do with It?
 | jackddeal for six weeks Obama has been on the defensive and the McCain campaign has been controlling the media and more so now with Sarah... |   |
| | jackddeal that's because right now the truth is Burton and Axelrod have no strategy and are putting the campaign in desperate straits... | |
| | jackddeal the Demo campaign is reduced to going after a Congressman that uses the term uppity crying race hoping to inspire the base? groan... | |
| | jackddeal why are Burton and Axelrod going after a no-name Congressman and not after Sarah? mon dieux, what are these clowns thinking? duh... | |
| | jackddeal at least if Obama fires Biden, Axelrod and Burton he might start to counter Sarah? would that change the game? maybe...maybe not... | |
| | jackddeal because if the Burton cancer runs top down; Obama is going to have to fire all 2500 of his staff...and that might not look very good... | |
| | jackddeal let's just hope that Burton's and Axelrod's ineptitude doesn't extend throughout the organization...if that's really the case? groan... | |
| | jackddeal Ralph Nader said Obama wasn't stupid enough to pick Biden; Obama will sure prove Ralph's point unless he fires Biden... | |
| | jackddeal Burton and Axelrod must think McCain is too old and will take off for vacation in a week or so...right. Who knows what they are thinking... | |
| | jackddeal dead heat, Sarah on the campaign trail and Burton and Axelrod rail on 'uppity' inferring race...what clowns our Laurel and Hardy have become | |
| | jackddeal it's has become clear Obama's campaign staff is incompetent and threatening to cost him the election...well, at least we still have Joe B. | |
| | jackddeal Laurel and Hardy of Obama's campaign are bringing up race in the midwest...groan...the midwest ain't SF or Boston...groan... | |
| | jackddeal KGO reporting that Burton and Axelrod are complaining a congressman called Obama 'uppity' ; Burton and Axelrod inferrng racism...groan... | |
| | jackddeal in a dead after the conventions with clearly the momentum going to Sarah...uh, sorry, McCain so that lead could grow more...fire Burton | |
| | jackddeal Flash: KGO reporting the latest polls show a dead heat. The Demo convention bounce is gone...we have been outflanked... | |
| | jackddeal McCain picked someone that might outshine McCain while Obama picked a safe bet in Good Ole Boy Joe that can't outshine anyone...groan... | |
| | jackddeal what Obama really said was "I don't want this election to be about personalities anymore" groan...why, Chairman Burton? | |
| | jackddeal Burton and Axelrod have Obama focused on McCain's biography while McCain is focused on attacking special interests...groan...strategy? | |
| | jackddeal yahoo.com lead story is "McCain says it's over for special interests." Obama is down the list with "Obama says McCain focused on his bio" | |
| | jackddeal how long can Obama let his campaign stall before he has to make some major changes? does he have the time to delay? groan... | |
| | jackddeal at what point does the team owner fire the coach? | |
| | jackddeal Obama making that statement is a clear indication that his campaign is in deep trouble and Burton and Axelrod are desperate...groan...groan | |
| | jackddeal so Burton and Axelrod have Obama say "this election is not about personalities". Great. What is it about? Joe Biden? groan... | |
| | jackddeal the campaign appears to be falling apart...Burton and Axelrod have to go now... | |
| | jackddeal Burton and Axelrod have postioned Obama so that he is directly responding to Sarah...why is this considered to be good strategy? groan... | |
| | jackddeal so now Burton and Axelrod have Obama himself trying to counter Sarah since Good Ole Boy Joe is best kept under wraps...groan...and Hillary? | |
| | jackddeal so now Burton and Axelrod have Obama himself trying to counter Sarah since Good Ole Boy Joe is best kept under wraps...groan...and Hillary? | |
| | jackddeal groan...Obama was just quoted as saying "this is not a personality contest" ...groan...that's what he has run on, Chairman Burton... | |
| | jackddeal Burton and Axelrod have Obama with Good Ole Boy Joe on the Big Self Discovery Tour, 'self discovery' were of course Sarah's words...groan... |
Win the Battle but Lose The War and Why That Strategy Really Doesn't Make You Feel Any Better
| | when we Demos, led by Burton and Axelrod, attack guns, babies, mothers, God and war heroes; we win in the Bay Area but lose the Midwest... | |
| | if Ron Owen and others feel attacking God is smart; just remember there are schools in the Midwest that have prayers and no one complains... | |
| | amazingly some of my Demo pals still think there is no way we can lose; no matter what, Obama will win...duh | |
| | now Burton and Axelrod are forced to alter stategy and get off course all because Burton and Axlelrod hated Hillary...groan... | |
| | where in the whole Sarah roll out have we Demos been able to realistically counter her? nowhere, zero, zip, nada and advantage McCain... | |
| | somebody in the McCain campaign set the trap for Burton and Axelrod and they blindly fell right in...attacking mothers and God is crazy... | |
| | folks in the Midwest see things a bit differently than here in the Bay Area and by attacking God, guns, mothers and babies we Demos lose big | |
| | the truth is, Sarah has stolen Obama's media show and Burton et al better figure out a strategy instead of 'countering' her...groan and duh | |
| | go ahead Burton, keep belittling Sarah and see if she doesn't ace the soccer mom vote in Western Pennsylvania, and Ohio, and Michigan...duh |
September 04, 2008
Country First, Who's on Second and How the Demos are Trying Hard to Lose
| | jackddeal one Gay Demo called Ron and said it was OK to attack Sara's family because she doesn't like Gays...groan...it's a slippery slope, Burton... |   |
| | jackddeal Ron and friends have spent a lot of effort building their fantasy world and are angry and dejected to see it start to wobble... | |
| | jackddeal a caller reamed Ron Owen on KGO for playing right into the Repubs hands...it's not just Ron, but many other sell outs as well... | |
| | jackddeal maybe Burton feels everyone is simply clinging to their guns and religion... | |
| | jackddeal in sports, if your game plan stinks you fire the coach; in business, if you don't make money you fire the CEO...but in Demo politics...sigh | |
| | jackddeal the truth is the Repub campaign has been unifying and our campaign divisive... | |
| | jackddeal so my pal asks, 'we have Country First', what do you have? ha...groan...change? really? let's ask Status Quo Joe... | |
| | jackddeal perception is reality and if Obama is judged to be unable to run a campaign he will also be judged unable to run a country eh, Burton? | |
| | jackddeal overheard over coffee: if he can't manage a campaign, how can he manage the country? groan... | |
| | jackddeal Where's Hillary when we need her? groan... | |
| | jackddeal Joe calling Sarah's speech 'style not substance' will play well on talk show jokes as Joe is renowned for many words with little meaning... | |
| | jackddeal to which I reply, 'we'll sick attact dog Good Ole Boy Joe on em'... | |
| | jackddeal my smiling Repub friend says 'now that the Obama campaign is officially smearing Sarah and attacking babies, what will they think up next?' | |
| | jackddeal McCain's stragists know us better than we do ourselves... | |
| | jackddeal our campaign has alienated Hillary supporters and now is trying to alienate all women...groan...it's as if McCain knew how we would react... |
September 03, 2008
How Obama has Lost the Edge and Why Taunting Your Opponents Can Backfire
| | if strategy is everything ours stinks having brought the race to a dead heat and put McCain in a position to win...why? |   |
| | in sports the last thing smart teams do is taunt their opponents before the game because that gives the enemy motivation...duh and groan... | |
| | for the past five weeks this inner circle has made mistake after mistake and nothing has been done to correct it...groan... | |
| | somehow Obama's inner circle have not only brought him to this mess but are taking him to a Novemberr meltdown...groan... | |
| | perception is reality and if Obama supporters attack family they are attacking mom and apple pie as well...Obama can blame it on Burton... | |
| | if you can't control the surrogates then they will do whatever no matter the consequences...a weak manager like Burton makes it worse... | |
| | so the glee with which Obama supporters are attacking Sarah's family may feel good to them in the short term...but Obama will suffer...duh? | |
| | doesn't Burton understand they will play his comments that small town experience isn't really experience...duh... |
September 02, 2008
How Obama's Weak Campaign Staff is Allowing McCain to Win or What Strategy?
| | Burton must have figured Good Ole Boy Joe was longer winded than Barrack and that would look good...right? | |
| | Democrats of the world unite! Sarah's husband for VP! | |
| | Why does Sarah vs. Good Ole Boy Joe have that Dukakis feeling? Joe will be respectfully reminded that he is no Hillary... | |
| | we didn't count on being outfoxed...groan... | |
| | replace Burton with Bill Clinton...even Pat Buchanan said Hillary would produce the winning ticket...what did he know that Burton didn't? | |
| | we have a right to be ticked off...we're Democrats! | |
| | it damages morale when campaign staff are incompetent; time to can Burton... | |
| | lest we forget and Sarah needs to remind us; Sarah runs a State; Good Ole Boy Joe runs a committee...and we Demos will be reminded... | |
| | A McCain VP choice equivalent to Obama's would have been Mitt Romney...safe and secure but not Sarah for sure... | |
| | Alaska has Canada and Russia for neighbors...doubt the Canadians will invade but not so sure about the Russians...ask Sarah... | |
| | some relatives email...'we thought Obama would pick a woman.' |
May 08, 2008
Business Intelligence, Espionage and Spying on Your Competition
Business Intelligence, Espionage and Spying on Your Competition
Reply to: serv-675483@raigslist.org
Date: 2008-05-08, 6:21AM PDT
You know who they are but you can't figure our what they are doing. If you knew you might be able to gain some competitive advantages but not knowing is the problem. Google my article "Business Intelligence and Business Espionage or Why Don't We Just Call It Spying?" for more information. We focus on process, management and strategy; hire a private investigator PI if you want to know gossip. No hacking, scams, tricks or anything illegal; our focus is business. To find out how you can learn more about your competitors reply to this ad or contact JD Deal Business Consulting and Zuniweb.com 831-457-8806.
- Location: Santa Cruz
- it's NOT ok to contact this poster with services or other commercial interests
PostingID: 67270
May 06, 2008
Bank Loan Narrative and Bank Loan Summary
Bank Loan Narrative and Bank Loan Summary
Reply to: serv-6573@craigslist.org
Date: 2008-05-06, 8:55PM PDT
You need a loan. They want to know where you come from, how you are doing, what you are going to use the money for and how that will improve your profitability so you can repay the loan. If you can't show this, forget it. If you can, reply to this ad or call JD Deal Business Analysis and Development at 831-457-8806.
- Location: Santa Cruz
- it's NOT ok to contact this poster with services or other commercial interests
PostingID: 671573
April 02, 2008
The Worst Time to Sell Your Business is When Your Profits are Down
Julie and Michael owned their music business for over 25 years. Like all businesses they have had their ups and downs but in general business was pretty good. They had no formal exit strategy but eventually planned to sell their business and retire.
Over the years their business had grown slowly but surely; an incremental growth that was fueled by hard work and careful reinvestment back into the business. All appeared to be going their way up until the past few years.
Sales unexpectedly began to go flat and many of their more expensive items were not selling. They still sold sheet music and guitar picks and the cheaper items; but drum sets and pianos were simply not moving.
Still, they were optimistic that things would improve. They still had good foot traffic in the store and the local schools kept sending music students to rent instruments. But more and more Julie and Michael could see their working capital was tied up in high ticket items that did not sell.
Finally one of their better customers did not purchase their youngest child's instrument from Julie and Michael. Frustrated and alarmed, Julie called the customer and asked what the problem was.
The customer replied there was no problem but his budget was especially strained with buying braces and a new car. He added that once he knew what instrument his kid needed he simply bought it on the Internet for about 20% less.
That 20% was part of the margin Julie and Michael were getting as the difference between wholesale and retail.
Julie and Michael were victims of the "look at it here but buy it cheaper on the Internet" syndrome. E-commerce technologies had opened up the distribution channels and e-commerce based companies were willing to sell the same products at less than standard retail; after all, these e-commerce companies didn't have the overhead of a large retail store.
Stunned and disappointed, Julie and Michael decided to sell their business before things got even worse. They put their business up for sale and were certain someone younger that loved music would buy their labor of love. In the first three months they had no serious inquiries so they lowered the price.
After six months they had an inquiry from a serious but astute buyer. The buyer examined their financials and stated the business had been in decline and needed a "miracle turnaround" to make it work. In the end the buyer offered them a third of what they were asking and then simply walked away.
Julie and Michael's problem was their original business model and business plan were now obsolete. Even a not so bright prospect could see that things had been going downhill and more of the same could be expected.
Since the business had little potential and was showing declining profits, no one was interested. Buyers are interested in what's in it for them, not the sweat equity that goes into building up a business.
In the end Julie and Michael did sell but certainly not on their terms. They ended up selling the equity in their inventory and not the business per se; sort of a liquidation fire sale. And needless to say at a lower price they had ever imagined.
Julie and Michael were dejected. They had spent the better part of their working lives building their "baby" business only to see their equity drained as profits declined.
In fact, they learned that for the past several years they had been paying themselves not from profits but from their already earned equity.
In hindsight, Julie and Michael learned they waited about three years too late to sell. But human nature being what it is they weren't interested in selling when times were good; they waited until they became somewhat desperate.
The lesson Julie and Michael learned too late was sell while the business valuation is at its highest.
March 31, 2008
Changing Oil and Changing Times: The Independent Auto Repair Service Dilemma
If you see fewer auto repair shops in your area then you are witnessing a trend that is spreading throughout the auto repair industry. The small independent auto repair shop is getting squeezed by both the dealers and the 'backyarders' creating shrinking margins and putting many auto repair independents out of business.
The global problem is the auto repair and service market has been shrinking in the last ten or fifteen years. Technology has made cars much more reliable with fewer breakdowns, repairs and scheduled maintenances.
Many manufacturers offer some sort of 100,000 mile warranty meaning that the independent will get little chance to work on that car for the first 5-10 years it is owned.
As new car sales margins have gone down, VW, Chevrolet, Toyota and other manufacturers are looking to their service departments to make up the difference.
Additionally many dealers such as Porsche and Saab have been adding other value added benefits such as a loaner car while repairs are being made. Independents are now being forced to give courtesy rides to customers in an effort to keep up with the dealers since customers now expect this service.
Furthermore dealers such as Mercedes and Ford are now directly offering specials on services making their dealer prices comparable to independent repair shop prices.
But it's not just competitive pricing that is worrying the independents.
The battle for skilled labor is also being won by the dealers: the dealers have always competed for skilled labor and now have become even more aggressive. With fewer young people entering the auto repair profession and opting instead for careers such as health and technology, the total talent pool of the top skilled auto technicians is shrinking.
Increasingly it is becoming harder for independents to hire and retain these highly skilled employees. As an automotive technician, would you rather work for Audi or Joe's Garage?
The dealers are picking up the best 'mechanics' or as they are known today, 'technicians.' A top end dealer technician can make $100,000 a year with benefits while an independent shop owner would have to gross over a $1,000,000 a year to make that and still have to pay for their own benefits and social security.
Because of these economic realities many independent owners are now closing their shops and going to work for GM, Nissan and other dealers.
This puts the independent auto repair shop at a distinct disadvantage when diagnosing and repairing difficult drivability, fuel injection, electronic and computer related problems.
Additionally, if a diagnosis is made and a part needs replacing the dealer will have it in stock, not only verifying the diagnosis but greatly speeding up the repair time and increasing customer satisfaction. Big advantage Cadillac and Mercedes.
But it's not just a skilled employee war. Techs cannot fix cars without information and there has been a long and ongoing dispute between the dealers/manufacturers and independents over technical information access and diagnostic tools.
The manufacturers claim that their technical information is proprietary while the independents claim the information should be available to anyone that owns or fixes that make of car.
If the dealers wanted to they could stop all outside repairs on their vehicles but the problem is there are not enough dealerships to service all geographic areas, especially smaller towns and less populated areas. So the manufacturer/dealer gives out some information but not all, often charging the independent repair shops for this information.
Not only does the independent have to buy some parts from the dealer, but also some of the technical information as well. Big advantage Honda and Dodge.
Some independent owners simply watch their business steadily decline over the years as they go out of business. Younger independent owners are willing to work harder and for less financial reward hoping industry conditions will eventually improve.
In essence the independent auto repair industry has matured and is now in a decline. Some consolidation is going on but much of the repair work has either disappeared or is now being done by the dealers, auto repair chains or one person 'backyard' shops.
The opportunities are there for those that want to work hard but those opportunities are increasingly limited. In a declining market, only those independents that can develop new competitive strategies will survive and thrive.
As with all mature and declining markets there will be new opportunities for those owners that can adapt and make the changes. Those independent auto repair shop owners that don't modernize, strategize and compete will go the way of the Edsel and Model T.
March 20, 2008
Reactive vs. Strategic or Who Really Cares if Your Company is a Dinosaur?
It happens in business, it happens in politics, it happens in life. There are those that wait for things to happen and there are those that make things happen.
There are those that are in control and those that are controlled.
There are those that have concluded it is easier and more enlightening to let things go and let things happen as they do. Perhaps secretly they want to become Buddhist monks and pledge a life of poverty.
Clearly fatalistic, their idea is it is better to "wing it" and keep costs and stress down by not worrying about strategy. Or worry about much of anything. And it works, at least in the short term when things are busy and rolling merrily along.
Because in business if you are good at what you do, it's not so difficult to start small and stay small. In fact, in many ways it's easier; lower overhead, fewer headaches, less investment and certainly less risk.
But staying small is not very interesting, does not scale, does not take advantage of opportunities and in the end is only minimally profitable. Many of these small owners would actually be better off working for someone else.
But not so with larger companies. Larger companies cannot exist without a strategy unless they are a first mover or in a new market. The survival of the fittest simply means those larger companies that are less competitive now will evolve into market bottom feeders and have regular cash flow crises later.
This begs the question of is it easier to deal with a series of cash flow crises than develop a strategy that avoids these crises?
This should be clear to anyone that is putting forth the energy and resources to run a company. It should also be clear to anyone that has ever dealt with a company cash flow crisis.
The obvious conclusion is that strategy puts your company in a position to win; simple reaction means that you are doing what everyone else is doing and that makes it almost impossible to win. In business these companies are called 'dinosaurs' and the business landscape is filled with their fossils.
In markets that are increasingly competitive and global, the playing fields have been leveled. No longer is geography or demographics necessarily a key competitive advantage.
In fact, technology has given the advantage to those that use it and that potential exists even in depressed areas. Today, a company can locate almost anywhere and ship to almost anywhere.
Perhaps our resistance comes from our limited psychology making us become defensive about why we simply react. We humans are filled with pettiness and we often obstinately insist on defending our past decisions; a 'spinned' distortion of past reality is a behavioral trait that seems to be almost universal. To 'spin' the vernacular; it is us.
"We have always done well without a strategy and there is no reason to change that now."
So if something falls outside our simple mental framework we often dismiss it as foolish or 'not applicable here'. We wish it away and in fact away it goes. And we pat ourselves on the back for being so clever. Aren't we the smart ones?
"Why take the hard road and strategize when we can simply sit back and let it roll off our backs? Besides, if one is small, it can't make that much difference anyway."
What is surprising is that all this really should be clear to anyone in business today. Strategic planning and positioning brings competitive advantages to those that use these tools but not to those that don't.
As a vertical market or "space" becomes saturated with competitors, most will be doing similar things. Most blend into the competitive background and have little or no chance of standing out, which is not a problem unless supply exceeds demand. When supply exceeds demand, those that react simply get a decreasing piece of the pie.
For many companies there is a good alternative and that is to simply lower expectations by concluding "we aren't good enough to deserve better." If this is your company just be sure to adjust your budget numbers accordingly especially that number in the lower right hand corner.
Actually it should not even be embarrassing because the markets don't care whether your company does well or not. If you don't have an updated strategy there is no need to be embarrassed. Technically there is nothing to be embarrassed about; no worries.
Because if you don't care enough to develop your strategy, why should anyone else care?
March 11, 2008
The Quality Line or If Your Customer Doesn't Perceive It, Does It Matter?
You get what you pay for is the consumer's mantra. Common sense knows that if it costs less it is more likely of inferior quality.
Unfortunately quality is relative and subjective and even unwieldy. For that reason and common sense the value the customer puts on quality is where the quality line should be drawn.
Still it is not rocket science here; a rather straightforward case of supply and demand. If the consumer cannot tell the difference in an improvement, why do it? No need to guess.
Often it is a simple matter of asking. Think for a minute...when was the last time you asked? Do you only ask when there is a complaint?
On some level every business must deal with quality. Every business strategy determines just where the quality line goes -- high, low or in-between.
Where this line is placed often determines the difference between success and failure. The key dynamic is profitability; place the quality line at the wrong level and profitability goes down.
Customers may leave a business for poor quality but they can also go to a competitor for the same quality but better price. In one sense this is the easiest quality question to answer: just ask your customers. Just ask what your customers want and what do they need.
Wants and needs change constantly so you must keep asking the question...even put it in your operating business plan.
Sometimes wants and needs are the same...but often they are not. As part of your ongoing dialogue it is important to know just how much your customer is willing to pay for quality. If your customer wants it but cannot afford it, you must figure this into your strategy.
The next step is to determine just where your current quality line is. Regardless of whether you have a conscious plan or an 'unconscious' plan, you do have a quality line.
Those businesses that have a clear idea of where that line should be can then try to bridge the gap. Simply by taking a hard look at where you are and where you should be creates awareness and focus.
One good exercise is to determine just where your competitor's put their quality line.
What results are they getting and how is their quality line perceived? Are they providing you with an opportunity to take some of their market share?
By looking into your industry's quality issues you can see that improved quality almost always involves increased costs.
Before adding costs make sure the increase in perceived benefit will be apparent. Since all costs go to your bottom line, make sure you are getting a good return on that investment; always remembering that in a competitive environment there is little margin to be had.
One cost control plan is simply looking for all the ways to reduce costs. Another is to look at doing things that enhance quality at little or no cost.
Employee input is important to monitor; especially with those employees that have direct customer contact. Do you have ways to reward employees who contribute to quality improvement? Do you have low cost ways of rewarding good performance?
The astute owner or astute employee is always on the 'prowl' for new quality improvement ideas. This includes looking for ways to apply quality concepts from different vertical as well as horizontal markets.
But since the rate of change often seems to be accelerating, what may be working today may not work very well tomorrow. So today's ownership and management must keep a sharp focus on shifting trends.
The competitive nature of business changes so rapidly there is no rest for the quality weary. By constantly working the balance between quality and costs the modern manager can improve the bottom line and become more competitive.
There seems to be no end to the drive for improvement and cost reductions. Where quality lies in the matrix is one of the biggest business decisions ownership and management make about the company's bottom line.
February 26, 2008
Is Fast Growth Always Better than Slow Growth?
Growth is what it is all about. Companies that do not grow do not make money. There is a direct correlation between growth and making money.
Historically growth has most often been expensive and somewhat illusory hence the willingness to accept as much growth as fast as possible.
Anyone that has ever tried to grow a stagnating business knows how hard getting any growth can be so few can resist the lure of fast growth.
But there negatives associated with fast growth. Some businesses would be better off to avoid the temptation of fast growth and instead look at steady incremental growth: incremental versus exponential.
At this point the hope would be the owner would grow incrementally with the company.
A quick self assessment of where you are and where you want to go needs to be made. From this assessment you can determine your capability for growth as well as indications for the best strategy to take.
One characteristic of fast growth companies is that they have to make decisions at an accelerated pace. Often these decisions need to be made on the spot with little information. Mistakes are not allowed.
The key indicators here are what do you have in place right now and what will you need to put in place to complete your business plan.
The critical call on decision making is what will be the reliability of the company's day to day decision making as it grows and expands.
During fast growth the status quo or "business as usual" is set aside and everything becomes stressed and strained. It is vital to your company that you have good decision making strategies and staff to carry them out.
Sooner hopefully than later you will have carefully reviewed your markets. If you markets show little opportunity there may be little chance for growth unless you diversify.
Look at your markets carefully and see if and where there are potential growth opportunities.
Growth industries are best but some declining industries offer growth opportunities as well. If your market potential is there, then proceed to customer value.
Look to what customer value you give and how that works in your competitive environment. Run that out on a timeline and attempt to anticipate your customer's future needs.
Can you create enough value to generate a profit? Again, focus on the market opportunities for growth.
As with any business venture there is risk and fast growth comes with risks. The key is to identify these risks and determine if they are acceptable.
The biggest risk for fast growers is cash flow...do your growth strategy projections keep you solvent as you grow?
On some bank loan financial projections one is required to include available cash on hand column to guarantee liquidity. This is because sales don't always mean growth and the temptation to grow quickly through financing is a trap that has caught many an unsuspecting entrepreneur off guard.
It is important to make these projections to insure the company will remain solvent and have enough cash on hand to meet daily and weekly obligations. Part of this juggling act is volume versus capacity.
Volume versus capacity is one of the trickiest juggling acts in fast growing businesses. Once you get the increased volume, can you handle it or will the quality of your product or service deteriorate making your business less competitive?
Can you meet the anticipated demand? If your sales slow, will your fixed costs be too high? Do you have to make changes in your business infrastructure and if so, what will that cost?
Employees and staffing are probably the fast growers biggest headaches. Fast growing businesses require employees that are focused and productive.
Fast growing businesses are a good deal more stressful, but also more challenging, rewarding and fun to some employees but too much work for others.
If you decide to grow quickly, assess your employees and see where each fits. You most likely will face the problem that not all employees are suited for fast growth.
Getting and keeping good employees is much more important in a fast grower...make sure your pay and benefits provide good incentives.
Growers grab for any advantage they can and technology offers a world of advantages. The idea is how to leverage technology to make your business more effective and efficient.
What are the technology costs and can your people do with technology?
The whole business attitude is different in fast-growers. There's an excitement, thrill and upbeat buzz of activity, but not for all. Do your people see growth as stress or excitement?
Even though more fast growth opportunities exist than ever before, only a relatively small percentage of businesses are in a fast growth mode.
Run multiple scenarios so you will begin to understand the peculiar dynamics of fast growth so you can see if growth is friend or foe. Fast growth may in fact be for you, but look before you leap!
February 23, 2008
The Mission Statement Revisited or This Time It's All About Us
The mission statement is a hybrid between a slogan and an executive summary. Just as slogans and executive summaries can be used in many ways so too can a good mission statement. An effective mission statement can compliment all the other good things you do.
If you don't have a mission statement you are not alone...many companies don't. Many that do have statements that are ineffective or unused.
This brings us to the logical conclusion that almost no businesses have effective mission statements, which should give your business good reason to do one.
A mission statement can say who you are, what you do, what you stand for and why you do it. Though not a slogan or motto it can be combined with one. The best mission statements are short, maybe one or two sentences long.
This makes writing the mission statement a sometimes difficult chore; many companies find it easier to write a brochure than a mission statement. But although perhaps difficult the generation of a good, quality mission statement is well worth the effort.
An effective mission statement is best developed with input by all the members of an organization. It is important to remember that the mission statement is not just for customers and clients; employees will constantly be exposed to it as well.
Even if certain employees think it is silly or have no ideas (both are common) they will buy into the concept more if their opinion is solicited.
Effective mission statements take time...sometimes up to several months allowing for input and final editing. During that period keep asking for input.
It is a good idea to examine other mission statements to get approaches to yours; most companies put their mission statement on their website.
Humor, sarcasm, cynicism and eloquence are usually not good components of an effective mission statement. Simplicity, honesty and brevity are. Avoid saying how great you are, what great quality and what great service you provide. Using these concepts makes you indistinguishable from your competitors who say the same thing.
Effective mission statements need not set the world on fire and overly lofty statements have little credibility. The best ones are direct and powerful.
Try to state something that elicits an emotion or feeling; perhaps powerful or perhaps more subtle. There are no formulas other than try to make your statement you and make it do something that will cause notice.
Most importantly since it is yours make certain your statement is you and not some other company. That is why you should not copy a statement from another company. Even if your statement is a little unpolished it will appear to have more credibility than if it portrays you as something you are not.
Make certain you believe in your statement. If you do not believe it, it is a lie. Everyone that deals with you will know it is a lie.
Take a look at mission statements in brochures, websites or office walls. Most say something about the commitment to quality and service and how the company is gung ho on everything it does as it makes a profit off you. Those types of mission statements are useless and detrimental to the image your company needs to project.
If you have such a mission statement hanging on your wall, take it down and do another. You will feel a lot less foolish.
In a real sense the mission statement should be viewed more as an ongoing process rather than finalized text chiseled in stone. As your company develops the mission statement may need to be revised to reflect new changes.
Review and edit your statement on a regular basis. By keeping the statement fluid and ongoing it can be used as a policy statement by your company that stays in front of your employees and customers on a daily basis.
This effort is further enhanced if you use your mission statement to supplement your sales and marketing tactics and not as standalone marketing collateral.
Seriously consider combining your slogan, if you have one, with your mission statement. This could be tricky and you will have to do a number of mock ups to first determine if this will work. There are many advantages to having one concise message linked to all your marketing collateral and human resources materials.
Make certain all in your organization get a copy of the statement. Use it in your personnel manual, business meetings and post it in the workplace. You and your people should be proud of your mission statement. If not, develop another one.
There is no fool like the fool that has a goofy mission statement hanging on their wall; it shows you really don't care.
If your do your mission statement correctly it can deliver solid value to your company and it will be your mission accomplished. That's what you want, right?
August 16, 2007
Why You Should Speak Business Spanish, Amigo...
Just because you are an American and only speak English, you should not feel linguistically inferior. Becuase if you are an American and speak English, you already know hundreds of words in Spanish. You just don't know they are Spanish words. Words like taco, salsa and cerveza are in fact not English words at all! Yes, as big a surprise as that is to some of you, wait until you hear the rest of the story!
Worldwide, we Americans are known internationally as the Monolinguals. That means one language only. We don't even feel embarrassed by this. We're at the bottom of the language barrel. Many if not most Europeans are multilingual. What an advantage! That's because Europeans aren't stupid. If they live in an area where more than one language is spoken, they just learn the other language. Simple. Unless they are French, they don't fight a language. Languages aren't our enemies; languages are our friends. And like friends, knowing more than one is nice. But most of us make excuses like "I can't learn Spanish because I'll mix it with my English and forget both." Yeah, right. You can keep the Mets and Yankees separate but not your 'adios' and 'good-bye'?
Some of us Americans believe we have a Monolingual English Gene in our DNA and science is just about to discover it any day now...maybe...
But for all you monolingual paranoiacs I have bad news for you and you best sit down while I'm telling you this. I'm the nondescript guy standing in line behind you that looks anything but Latino and fluent in Spanish. Believe me, the employees at McDonalds and BK are not talking about you. You are simply a customer ordering six Big Macs. The Spanish speaking employees feel their families, boyfriends, girlfriends, children, school, and even their jobs are more important than you and your supersized order. Maybe it's time you learned some Spanish so you won't appear so foolish. You might wish that cute waitress was talking about you...in your dreams. If you knew Spanish, you'd know that to her you are just another jumbo order.
Business is another matter. If your business or organization provides goods and services to Spanish speakers, you should have a Spanish language plan in place, You are missing out on good business because of your inability to communicate. It's not 'their' problem; it's yours. It's your money you are leaving on the table. At least the poker player gets to place a bet...if you miss out on Spanish speaking customers, you lose and don't even get to play the game.
And business in Latin America continues to grow and with it the demand for more products and services. Those companies that can communicate in English and Spanish have a clear advantage. Besides, learning English and Spanish is a relatively easy and fun way to compete against China, North Korea, Iran, Iceland, Cuba and Venezuela. You could even say it's patriotic, no? And as tourism continues to grow worldwide, why not mix in a little language acquisition?
For all you guilty, non-Spanish speaking Latinos, if Spanish were to become the official second language of the U.S., English speaking only Latinos could learn Spanish and feel patriotic at the same time. However you are forewarned that non-Latinos should never bring up this subject.
And you already have an 'edge'. Spontaneous active vocabulary happens quickly and means you don't have to translate or look it up. Since you already know so many words in Spanish, you already have a head start. If you know the right words and how to use them, all roads lead to fluency. Why make it harder than it is? How many Chinese or Russian words do you know?
Besides, roots or cognates are the same or almost the same words in both English and Spanish. Words like natural, national and hamburger become natural, nacional and hamburguesa. That sounds too easy, but it's estimated that about 25% of all words in English and Spanish are derived from the same root. That's a huge advantage for all of you that are feeling linguistically inferior today!
Look at the Scandanavian language model. The Scandanavian languages are tough; even the natives know these languages are rough. They why they all got together once and said 'we'd rather learn English than the native, crummy languages we all speak. Who could blame them? So English became the national language of Norway, Sweden and Finland. This took only forty years or about two generations to accomplish. If whole countries can do it, why can't you?
And then there is Chile, the country. Chile is shaped like a string bean. Pacific on one side, Andes on the other. There are only about 15 million Chileans but they are special because with the exception of Costa Rica, they are the only Latin American economies above water. They don't have much of an army and they are located on one of the world's more politically unstable continents. But the Chileans have guts. As a country, Chile is not afraid to learn English and has declared English the official second language.
Chile has committed to building its human potential by providing access to education, technology and business. Chileans are also smart. They didn't pick Russian or French. Why does anyone in California study French? When was the last time you heard French spoken at Safeway or the Niners game? French isn't even on cable TV so how are you going practice? Mon dieux, Monsieur!
Maybe it's time we finally stepped up to the plate and just make Spanish our official second language. Maybe as a country, it's time we stop wimping ougt and start gaining some language advantage.
Jack D. Deal
August 11, 2007
Can Innovation be Engineered?
Increasingly in today's business environment the need to innovate has become a key for success. Innovation does not have to be the big patents or major product breakthroughs. Innovation can be figuring out how to do something better and more effectively, no matter how small or trivial the innovation may seem. What made Einstein, Edison and Leonardo da Vinci such prolific creators?
The problem with creativity is that it often is not tangible or measurable. The scientific experts tell us they don't know what it is but business people say it is becoming increasingly important in the workplace. Some countries and cultures have a different propensity toward innovation with some countries having little or no marketplace innovation.
Like morale and image, creativity becomes more accepted if it is kept in company conversations and meeting agendas. Since innovation is not a commodity, the rules for managing commodities do not apply here. That is why some of the biggest companies are the worst innovators. Reward creativity as soon as you see it.
Innovation centers around the free flow of ideas and questions. Any management system that creates obstacles for this flow is being counterproductive. The question to ask is "what can we do to become more creative and innovative?"
Creativity and innovation cannot be turned on and off like a faucet. One strategy is to let the creative juices flow when they flow naturally; when they are not turn to other tasks to get them out of the way.
When looking at your company's business model; try to define the constraints, limits and focus of your creative efforts. There are no limits but there are constraints...it is important your people know these.
Track your company's ideas and innovations on spreadsheets. This will let your people know you are serious about gaining a creative advantage.
If your people aren't interested in ideas and being creative, find new people that are. Hopefully you will hire these people before you go out of business.
It does appear that the free mind is also the creative mind. Harsh external conditions may in fact cause the creator to focus more on their own creativity.
Inquiring implies effort on the part of the learner. This takes the focus away from the self and shifts it to society and the world at large. People that are interested and busy pursuing those interests don't have a lot of time to sit and worry...
There appears to be some link between genes and interests but at this point there is not much known in this area. When an individual is able to follow their interests the genes and energy match up and it appears that creativity is also enhanced as well. That does not mean that by simply following one's interest one can induce creativity. It simply means that the set and setting is optimized and with the brain working at a furious pace ideas can be generated.
Jack D. Deal
August 08, 2007
Business and Language Fluency
The Europeans have always had the advantage on languages. It’s not unusual for a European to speak more than two languages fluently. Maybe it’s because the countries are smaller and there is little problem crossing borders. So it is no surprise that Chile uses a European system for language assessment for their national English program ‘English Opens Doors’; not an American system.
When I was younger I spoke basic conversational French and German. No longer. No one speaks French or German in California, ha. It hardly matters because you would be hard pressed to find many Germans that know no English. When they visit the U.S., they speak English.
So it is no surprise we find some of the world’s best language research comes out of Europe, not the U.S. It is also not surprising that the Europeans are critical of the way Americans teach languages. While acknowledging the importance of pronunciation and grammar, exclusive attention on grammar actually can lessen proficiency by reducing positive learning reinforcement. Ouch! We all did it in school. How much high school French do you remember? The learner gets bored and just studies to pass a test, not become fluent.
It’s also our standards. Our standard is that if we can decline a verb correctly and pass the test, we are fluent. Not so. Our focus is on a test and not fluency. That is why students can graduate from high school in California and not be fluent in English. They can pass tests, but aren’t fluent enough to go to college or get an English-speaking job. In California we have students that spend their entire public school career in English proficiency programs. In our local school district, it takes up to six years to get to English fluency. Yet some programs can get Spanish speaking kids mainstreamed in only two years. Why?
Clearly politics plays a role. It seems highly unlikely the Europeans would accept six years to fluency. They would laugh at the State of California’s inability to define fluency, even though ‘mainstreaming’ is the clearly defined result.
So if we can’t look to the U.S. for guidance; we can at least look at the Europeans.
One of the simplest concepts is that of active vocabulary. A word is in your active vocabulary if you can recall it at will and do not have to think or translate. At 500 words of active vocabulary, one can do the some basic communication. At about 1500-2000 words the learner becomes conversationally fluent. At 4000 words one is considered fluent enough to carry on a normal conversation. What this demonstrates is something we already knew: words are the building blocks of language and knowing and ‘owning’ these words provide the path to fluency. Or at least part of the path…ha!
Active vocabulary can be tested objectively and precisely. Active grammar and syntax hold the rest of solution
Oh, and by the way, here’s a definition of fluency: the ability to comprehend and to spontaneously generate words, phrases and sentences in a language. That’s our definition and it seems to work. Maybe it’s our California politics. In language, fluency is everything but why is fluency such a secret?
Jack D. Deal