Four Ways to Cure Indecisiveness

Arghhh!!! It drives me crazy sometimes when people are so afraid of what might happen that they can’t make a decision. It’s especially frustrating when I’m the indecisive one. Indecisive leaders drive employees crazy. Just make a decision, any decision. A bad decision is better than none at all. At least we’re moving in some direction and a bad decision can be made better, but no decision is something we’re stuck with.

Now, before I go too far and you think that I’m somehow immune to this, I’m not. I have to confess that I’ve been there too, frozen and unwilling or unable to move forward. I understand the fear. It’s real and the consequences of making the wrong decision can hurt. But, I haven’t met a leader who, after terminating a problem employee or exiting a losing market, didn’t say: “I wish I would have done this sooner.” So, if you’re stuck and don’t know what to do, here are a few ideas that work for me. They may work for you too.

Shut the company down? How many times have we put off replacing a poor performer out of fear of what would happen when they are gone? Maybe we feared the loss of a customer, uncertainty over how we’d get by without them, or how we’d pick up their workload. I know I’ve asked myself these questions. You’d think the company couldn’t run without them. And how many of us have had that employee or others quit at the worst time. All of us have. So what did we do? We didn’t shut down the company when they quit. No. We figured out how to move forward without the employee. So if we can survive when they resign, why is it we don’t have the same confidence while they’re staying and pulling down the organization?

Addition by subtraction. Bad customer relationships are another category where sometimes less is more. There’s a time when a company needs every sale it can get. That’s usually in the formative stage of a business or during a period of turnaround. But that’s not the case most often and yet we act like it is. So often we fear what could happen if we lose a customer that we’ll stay in a bad relationship even when we’re probably losing money with every job or order. It’s liberating to exit an unhealthy customer relationship and we often become more profitable the day we stop doing business with them.

Seek the counsel of others. Chances are you’re not alone in your problem. Other leaders or coworkers have been in the same situation. I knew that but why didn’t I tap into my network? Maybe I was embarrassed to admit I was stuck. Maybe I was so focused on solving the problem that I totally overlooked the help I needed that was just a phone call away. Use your resources. I’ve been in advisory situations where my client didn’t need me to tell them how to solve their problem. They knew what to do. What they needed was my affirmation of their decision and, most important, my assurance that we could fix and get out of any new problem their actions would produce.

Make smart delays, but don’t make them an excuse. There’s a place for an appropriate delay. Certainly, thoughtful consideration of the problem and potential consequences is necessary. Planning for contingencies and choosing an appropriate time for tough action is a must. But there’s a point when “now’s not the right time” is more of an excuse than a real consideration.

Indecision is a helpless feeling. Circumstances and others seem to take control. That’s not healthy, nor is it true in most cases. Make a smart decision, but make a decision and move on. Your people will respect you for doing so and you’ll feel much better for having done something to put control back in your corner. No decision you make will kill you or put your company out of business and nothing is ever so broke that it can’t be fixed.

If you’re feeling stuck and uncertain about how move forward, call or write me through the “contact us” tab on this page.

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Creating a Culture of Personal Responsibility

Personal Responsibility. It’s something I frequently hear leaders say they wish they saw more of in their employees. It’s often described as a generational deficiency.  There may be some truth to that. My parents and previous employers probably thought the same of me. But personal responsibility as a character trait has much more to it that just a generational boundary. As with so many behavioral patterns in our family, work and society, a lot has to do with leadership. While we can’t change when an individual was born and what they were exposed to in their developing years, there are several simple steps leaders can take to create a culture of personal responsibility in their organization.  Throwing up our hands and blaming a generation is not one of them.

  1. The first and arguably most important step is to model responsibility yourself. Dodging issues, making excuses and pushing things off is exactly the behavior we don’t want to see in our employees and yet it’s often modeled. Leaders need to own their performance issues. Problems in the organization, no matter where they occur are the leader’s responsibility. They must own successes and failures. A leader who accepts responsibility for what happened is demonstrating personal responsibility and is more likely to see it modeled among the employees.
  2. Your job as the leader is not to do the work of the employee. That’s their job. Hand holding beyond the training period only enables poor performance. It is the leader’s job, though, to create a pathway for success. That might involve arranging for additional training, assistance or resources. Don’t provide what you think the individual needs, ask them what they feel is necessary. After all it’s their responsibility to complete the assignment.
  3. Success and responsibility can only exist in the context of a purpose and clear expectations. Much poor performance can be traced back to vague and incomplete instructions leading to different expectations. Clarify, in writing if necessary, expectations of deadlines, quality, communication, methods and more. Ask if they understand the expectations and have any concerns about performing them.
  4. Sometimes individuals don’t appear to take personal responsibility because they don’t know how to do what’s asked of them, but they won’t tell you that. They just plod along. When handing out an assignment, ask if they know how to perform the work? You might be surprised by the answer.
  5. Trust and verify. All the yeses and head nodding still doesn’t guarantee results. Monitoring and feedback does. During the assignment, touch base periodically, even frequently if necessary, but don’t handhold. Create interim milestones to break down the assignment into bite size pieces for the employee. When performance isn’t where it should be, ask probing questions instead of giving advice. Your questions help the individual solve their own problems, teach discipline and reinforce the expectations. Resist the temptation to lower or change the expectation.
  6. Support someone you believe in when they fall short. Don’t throw them under the bus. Accept responsibility yourself for their shortcomings and hold them to the same standard of personal accountability. Ask what you could have done differently to have added to their success. When you do you’re demonstrating humility and responsibility. Expect the same from them.

People generally like working for leaders they respect and believe care about them. Your engagement in an individual’s work life will communicate the degree to which they feel that bond. The more you model personal responsibility yourself and hold others to the same standard the more likely it will be that you get what you’re looking for. Model the standard, expect the standard, and do what you can to facilitate that everyone can perform to the standard.

Winston Churchill said: “The price of greatness is responsibility”. If you want a great organization, stop using a generation as the reason for just being average. Be intentional about creating a culture of personal responsibility and your organizational can become great.

If you’d like to talk about how to create a culture of personal responsibility, call or reach me through the “contact us” tab on this page.

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Simplify Your Planning

As the days shorten and the leaves fall we all know what season is just around the corner. That’s right – It’s planning season! Like winter, some people dread the planning season. Unlike winter, for some businesses it’s a season they can, and choose to skip. While it might be nice to jump  over winter and go directly to spring and summer, the planning season is one that’s really necessary in order to have a great spring (growth) and a bountiful summer and fall (profitability and value creation). Planning shouldn’t be a chore that’s stuck into the calendar of things to do. It should be an exciting and reflective process and it can be that when you start early and follow a few simple steps.

Slow down and begin with the end in mind
One of the biggest reasons I see owners put off planning is because they don’t know where they’re going. An annual plan is little more than an unrewarding guess when there’s not a larger goal or purpose to give context and meaning to the plan. The first step of planning shouldn’t be a budget. It should be reflective, thoughtful consideration by the owners of where they want to see the business go and the role they want it to play in their lives. Spouses should discuss the role they want the business to play in their family five to ten years in the future. When do they anticipate retiring? Do they anticipate or want children to succeed them? How will life be different when the kids leave home and what do owners want their career to look like then? No doubt you’ll change your mind but some long-term goals require a long runway and having a plan now for the future may influence next year’s objectives.

Back to the future
With some idea for the role the business is going to play in your life, you can begin to back into a path to the future. If you have a picture of your work/life balance, income, or business valuation five years in the future, you can work backwards, by year, to plan a migration from today to the destination. If your goal is too far out for you to see the path to get there, rein it in. It might be difficult to plan to a destination that’s twenty years out, but you might be able to see ten years out or even five. Once you have the picture, document as much of it as possible. How many locations will you have? How many employees? What services are you offering and to whom? How do you see your role in the company at that time?

With all this in mind you can begin to see interim points along the journey. If you’re guiding on a ten year horizon, where will you be in five, and then three? The further out you look the fuzzier the plan becomes. But that distant plan doesn’t need to be specific nor should it be. Some things will change before your get there. However, the closer the goal gets to the present the more specific and clear it becomes for what you need to do.

Now prepare the budget
With an idea of where you’re going with the business and a path for getting there, it’s time to prepare the next leg of the journey. It’s the time to prepare a financial budget, a staffing plan and operational steps for the next twelve months. By now you’ll have an idea of how much is enough, where you’re short and what needs to get done. Work the plan and review it quarterly. How are you progressing? What’s working and what’s not? Make adjustments. Don’t wait until the end of the year to shift direction if necessary.

With each quarter behind you, add three more to your perpetual rolling 12-month plan. Planning beyond twelve months can be difficult. For some industries, six months out is a stretch. Don’t wait, like most of us were taught, until the end of a year before starting the next year’s plan.  Make it a process and not a project. If you follow these simple steps, next year’s planning process will be shorter, easier and much more rewarding. The plan becomes a living and evolving document, one you’ll actually use and value.

Who as a child on a family trip didn’t ask – “Are we there yet”? If you make planning a simple and practical part of running your business, you’ll be able to answer that question. Planning provides both the windshield to your future and the mile posts along the highway. As you accomplish tasks and the months roll by, you’ll have the satisfaction of knowing that you’re that much closer to your life goal.  Slow down and enjoy the journey.

If you’d like to talk about how to simplify your planning process, call or reach me through the “contact us” tab on this page.

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Test Your Assumptions When Planning

It’s fall and the time of year when most business leaders head to the conference room for their annual planning process. For some it’ll involve new goals and strategies. For others it’ll just be a budget. However you approach it, the process of planning involves a lot of assumptions, many of which are taken for granted. We often give little thought to the assumptions that influence, sometimes in a big way, the direction and distance the business will go in the forthcoming year.

These assumptions are our truth and yet, they’re likely not the truth at all, they’re just assumptions that we’ve elevated to the level of hard facts and then taken for granted. We get locked onto our assumptions and to some extent that’s OK. Assumptions are how we make sense of what we hear and see around us. They provide a framework for our work and allow us to operate in a complex world with new information coming at us from every direction. However, nothing in our world remains constant and if we don’t closely examine the assumptions by which the company runs, we’ll soon find ourselves left behind.

The foundational building blocks of any business plan are the assumptions. They are the underpinning of every strategy, idea and budget. The Rand Corporation defines an assumption as “an assertion about some characteristic of the future that underlies the current operations or plans of an organization.” Certainly market research, competitive analysis, industry research and more are important. But those things are really just input into the conclusions and assumptions we draw from it. Like the report that’s been distributed throughout the office forever that no one seems to need, assumptions have a way of surviving long after their useful life is gone. It’s for these reasons that every planning process should involve some degree of assumption validation. Testing assumptions isn’t a difficult process, but it is a deliberate activity you should include in your planning calendar. There are several simple but important steps to follow.

The first step involves creating the environment where team members feel comfortable and are expected to challenge key assumptions in the business and the plan. Let them know that you’re no longer sure that everything you believe as factual about the company or marketplace is still accurate. This is easier said than done because by definition our assumptions are our truth and when a question is raised about one of them, it’s normal to defer to the subject matter expert in the room, the keeper of the assumption, who will reassure the team that it’s still the case and you can move on to the next question.

Ask yourself – What are the key assumptions that drive the plan, that if inaccurate, would take planning in another direction? These are the assumptions that are central to how the business interacts in the marketplace.

  • What do you really know about customer attitude toward your company?
  • Is there a continuing need for a product or service to remain in the portfolio (we all have some that should go but we hang on to them thinking we’ll suffer harm if we eliminate them)?
  • What features or services do customers value most?
  • Why do your customers buy from you?
  • Is there a significant customer base?

Once you’ve considered the list of key assumptions, you have to get comfortable with the next question – How do we know? I have a friend who likes to say that in any conversation with an employee or customer, you’re always just two questions away from the truth. The truth is we stop asking too soon. Reflect on the history of each assumption – Where, when and who did it come from. Does it still serve your best interests? The answer to these questions can take some time to answer so it’s good to begin this process early or, better yet, make it a part of communication throughout the year. I’ve seen too many plans forge ahead with old assumptions because there just wasn’t enough time to dig into them further. Even when there was some doubt about their accuracy, pushing it off for another year conveniently took the team off the hook of dealing with the work that might have had to occur if the assumption was proven inaccurate.

Be honest with yourself. If you’re not sure the assumption is accurate but you don’t have the time or desire to dig deeper to find out, say so. At least you’ve got something to follow up on, maybe as a part of the annual plan. Guessing is acceptable so long as you’re willing to bear the risk and potential consequences of the decision.

In summary, don’t get carried away calling into question every assumption. Pick a few big ones that are long in the tooth and take the time to validate their accuracy. In another time you can look at a few others. The worst case would be, you’ve put in time to validate that you’re in touch with the key drivers of your business. That in itself is a pretty good outcome.

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Business Planning and the Art of Motorcycle Touring

One of my favorite hobbies is long-distance motorcycle touring. I’ve been doing it for thirty-five years and during that time much of it has been spent in long hours of thinking on open roads. One conclusion I’ve come to is that there’s a lot in common between planning a successful cycle trip and operating a successful business.  While each trip and business is different, there are a few important lessons I need to observe if it’s going to be a good trip.

Set realistic goals. The keyword here is “goals”, not “realistic”. While realistic goals are important, it’s the absence of any destination or goal that concerns me. I’ve never left home without some idea about what part of the country I was heading to, maybe even a specific location. I’ve seen people in business put on a lot of miles and never leave their cul-de-sac because they’ve never determined a destination other than to stay in business. The scenery on that trip is not very attractive and tomorrow usually looks like today.

Have a general route in mind. I always leave with a route plugged into my GPS, but that can be short lived. I’ve often chosen my day’s route based on the morning’s weather report. Where I can, I re-map to head in the general direction of where the sun will be shining. I also leave the door open to road detours and other direction changes that look interesting. You may have had a plan for your business but the market sunshine is in another direction. Consider how a route change could benefit your journey without compromising the destination. In business today, an annual plan that’s six months old is already in need of some revisions. Don’t throw out the destination, just re-route to get there. A strategic plan should be a work in progress that evolves in accordance with long-term goals.

Set some benchmarks to measure progress. I seldom make hotel reservations preferring instead to find my night’s stay wherever I may be when I feel the need to get off the road. While my trip may not be scheduled I still need to pace myself to ensure I get to my destination and back in the allowed time. In business and travel, strategies and plans can’t be successfully achieved without feedback that comes from reporting systems and milestones that communicate progress. A daily review helps to measure and clarify where we need to be to accomplish the mission. My loosely held milestones enable me to hold myself accountable for the day’s performance.

Travel light but take enough of the right supplies. The size of a motorcycle places some hard constraints on what I can pack. Through experience I’ve learned how to travel well within the limited space available to me. It’s much less than I would take if I were in the car but I always seem to have enough. The lesson I’ve learned from this is not how to pack more on the motorcycle, but how to pack less in the car. In business, past success or the mistaken belief that we can’t operate without something can load us down and burn precious cash; the fuel of business. When that happens we lose our nimbleness, the ability to respond quickly to new opportunities and threats. Pack light. If you run out you can always get more. It’s a better condition than overtaxing the vehicle by carrying more than you need.

Anticipate the conditions and prepare for it. If I’m going to be on the road for a while, it’s not a question of if I’ll hit rain; it’s only a question of when. To make the best of my journey it’s important that I plan for a rainy day. In anticipation of that I have my rain gear ready and accessible. In business rain gear is liquidity. Every business, if it’s around long enough, is going to experience rain, sometimes even a downpour. It might be the loss of a large customer, an economic downturn or the presence of a new competitor. It happens at different times and places for everyone, but the rain is coming and you probably can’t avoid it. Therefore, when the sun’s shining build a balance sheet that can handle a little rain. Pay down liabilities and build a cash reserve for the rainy day.

If you’d like to talk about how to prepare your business to weather the next journey, call or reach me through the “contact us” tab on this page. Happy trails.

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