business strategies Archives - Page 14 of 14

April 18, 2014

Books that made an impact

Great leaders learn every day in business that storytelling is key to their role. Reading great books is one of the best ways to learn for some. A company that inspires leaders and business owners to meet results using the power of stories, personal branding, and thought leadership is a necessity in today’s business world.

I have been fortunate enough to read some excellent books over the last 25 years – books that have inspired me to change the way I see the world, my career, business, and the opportunities in front of me. Below is a list of those books that changed my life:

1. Mark H. McCormack – ‘What They Don’t Teach You At Harvard Business School’

Mark McCormack, dubbed ‘the most powerful man in sports’, founded IMG (International Management Group) on a handshake. It was the first and is the most successful sports management company in the world, becoming a multi-million dollar, worldwide corporation whose activities in the business and marketing spheres are so diverse as to defy classification.

In this book, Mark McCormack reveals the secret of his success to key business issues like analysing yourself and others, sales, negotiation, time management, decision-making and communication. What They Don’t Teach You at Harvard Business School fills the gaps between a business school education and the street knowledge that comes from the day-to-day experience of running a business and managing people. It shares the business skills, techniques, and wisdom gleaned from twenty-five years of experience.

2. J.W. Marriott, JR., Kathy Ann Brown and Jim Collins – ‘The Spirit To Serve’

Since taking over the business from his father in 1964, J.W. Marriott has moved from triumph to triumph, building an international chain that includes more than 1,000 hotels making Marriott one of the most recognized names in the hospitality industry. In this book, Marriott explains for the first time the unique management philosophy that brought him this enormous success. Written in an informal first-person narrative that is both engaging and easy to read, The Spirit to Serve distills his years of hard-earned wisdom and experience into a practical blueprint that anyone wishing to emulate his achievements can follow. It includes tips on how to motivate employees, nurture in-house talent, cultivate customer loyalty, as well as invaluable advice on handling growing pains, understanding the big picture, and knowing when to take risks. Packed with many real-life examples that illustrate his principles, The Spirit to Serve is vital reading for all CEOs, middle managers, and department supervisors.

3. Phil McGraw “Self Matters”

The well-known “life strategist” and TV personality Dr. Phil begins this upbeat self-help book by recalling one of the most unpleasant phone calls he ever had to make. In 1989, ten years into a flourishing career, McGraw called his father to say that, despite the outward trappings of success, he was miserable. His new plan was to move away and start a new career and a new life. According to McGraw, many people are now in a similar situation. They are trapped in unsatisfying lives or jobs that they loathe.

Too many people, says McGraw, are “so busy being busy, that they have let the colors fade from their lives. They’re worried about superficial matters rather than what’s important: “I’ll bet 90-plus percent of them spent months, or even years, planning their wedding and almost no time planning their marriage!”

To change their lives, McGraw’s readers must first complete two questionnaires that he designed to assess their “authentic self” and their “congruence” (how someone’s current life compares with a vision of an ideal life). With the scores from these tests, readers can then embark upon a specific plan for changing their lives and for determining which external and internal forces they will, or won’t, allow to control their futures.

Readers familiar with McGraw’s aggressive TV personality may be surprised by this book’s thoughtful and serious tone. McGraw’s notion of making change is not a simple one. It requires readers to look at every aspect of their daily lives and it’s likely that some readers may not be able to make all the changes he advocates. However, his book offers a thorough, realistic resource for those who are committed to turning their lives around to get what they really want and need.

4. Tom Peters – The Circle of Innovation

Business guru Tom Peters has been recognized for his originality and perception since co-authoring one of the most influential management books of all time: 1982’s ‘In Search of Excellence‘. Now, in his seventh work, ‘The Circle of Innovation: You Can’t Shrink Your Way to Greatness’, he presents a provocative new vision for prospering in the “permanent state of flux” that is ruling today’s business world. By juxtaposing short text passages and bold graphic images, Peters simply but passionately offers his prescription (perpetual innovation) in a nontraditional way intended to foster individual interpretation.

5. Paul R. Lawrence & Nitin Nohria – Driven

Harvard Business School professors Lawrence and Nohria present a socio-biological theory of motivation, claiming that humans have four basic drives

to acquire,
to bond,
to learn, and
to defend

What makes their theory novel is the way they apply it to the workplace. The authors use historical case studies to show that successful organizations are those that give their employees opportunities to fulfill these drives, while those that fulfill only the drive to acquire are ultimately less stable. Examples of both types of organizations are provided.

The authors are well versed in sociobiology and their four-drive theory makes intuitive sense. There are, however, a number of competing drive theories, from Freud’s sexual drive and death urge to Steven Reiss’s 16-drive theory. The authors acknowledge that the numbers and exact nature of our drives need further exploration and offer suggestions for research projects that would verify their hypotheses.

6. John Simpson – A Mad World My Masters

Some people just aren’t cut out for the suburbs. As one of the BBC’s top foreign correspondents, John Simpson has been at the epicentre of many of the world’s flashpoints for more than 30 years. Afghanistan, Belgrade, Hong Kong, Baghdad; you name it, he’s been there. And what’s more, he hasn’t just met the great and the good, such as Clinton and Blair, he’s met the top bogey men, too. He’s had Osama Bin Laden pleading with some Afghani guerrillas to kill him and his crew, he’s interviewed Emperor Bokassa, Colonel Gadhafi and Arkan and had close up dealings with Saddam Hussein. And it goes without saying he was one of the first people in the entire world to see in the new millennium on the specially named Millennium Island, which the Kiribati government claimed just squeezed inside the international date line.

What books can you recommend to me?

April 9, 2014

Guest blog post for Alium Partners

The Financial District in London, UK. Photograph by Geoff Searle.

My first guest blog post has been published with Alium Partners. It was an amazing writing experience and I cannot thank them enough for hosting me.

Alium Partners has provided senior executives into a variety of organisations across the UK and around the world, for over 10 years.

Working across both the private sector and public sector, the team at Alium Partners consist of a variety of sector and functional led professionals who work collaboratively to identify the right recruitment solutions for their clients from a talent pool of over 10,000 skilled professionals.

As always, if you have any questions, please contact me. I will gladly help.

Have a successful week!

March 31, 2014

Surviving the Upturn!

Transformation needs change, change needs focus. As I said before:

During the conference “Surviving the Upturn” I asked the audience:

How many of you achieved all the change you wanted to in your business?
How many of you have changed the organisation in the last financial/fiscal year?
Do you think you will have a disappointing or progressive report this year to the business?

Tip 1: Brand; discussing the need for a strong strategy across brand and culture.

What is a brand; vision, mission, values and the need for a brand blue print.

Defining the company’s competitive advantage correctly is the most crucial part of any brand program, while external communications may raise expectations in the marketplace from brand perceptions; it the brand experience that clients have that will translate into customer satisfaction and therefore greater profitability.

A true brand program needs to be established to make sure that all employee’s, partners, teaming arrangements and agencies are engaged with the brand, the message can be then carried externally to clients, and prospects.

The brand needs to be brought to life through a variety of media channels to engage, explain and motivate employees, we need to measure the improvements and refine marketing plans based on this approach.

Communication is all about making connections, connecting people physiologically, engaging appropriate communications to the mind, culture, learning’s that provide long-term memory of representations.

Tip 2: Why organisation change fails

Leaders today must understand and apply the knowledge of behavioral psychology and the business lessons to manage organisational change successfully. In the past, efforts at organisational change which has focused on the structural aspects of organizations have systematically failed because they have neglected the reality that change doesn’t happen without each person changing their thinking, beliefs and behavior.

chart why organisational change fails/GSearle — Click to enlarge!

Tip 3: Why sustainability is so key to a business success and driving performance

Most organisations will tell you they know what good management and leadership looks like and will be able to identify people with skills and qualities they admire. They may also tell you they know that good management makes a real difference to organisational performance.

There is strong evidence to support this contention: historically, our greatest business leaders have driven economic prosperity and growth. The economy has been shaped and driven by the pioneers of business; driving change and making the most of new technologies and opportunities. Entrepreneurial spirit, drive and influence has been the key to this success

Equally, at a local or personal level, managers who stand out, for either good or bad reasons, for their impact on the lives of employees, influence of those who had the ability to engage and inspire, to help us learn and make sense of the business environment and to meet the right balance between challenge and support.

Managers who possess a high EI and TI helped shape not just current performance, but our own behaviours and practice.

There is no question that the performance of leaders and managers can have a truly significant impact on organisational performance, both in the immediate and longer term. Skills such as people management, strategy and planning, budgeting and risk management can transform the fortunes of an organisation. But evidence shows that in general – both in the public and private sector – company’s fall behind because of talent recruitment and an inability to apply strategy internally and engage employees at the highest level.

If you have any questions, please feel free to contact me!

March 10, 2014May 16, 2017

Q & A with Geoff

I sat down with Alice (DefrostingColdCases.com) today for a short Q & A sessions about entrepreneurs and start-ups. Here’s what we spoke about:

Q1: What advice would you give to people who have an idea for a business and they know there is a demand for it but: they do not know how to write a business plan, they will need financing, and they do not know where to start asking for advice. Is there any step-by-step guide or a specific order people should follow to get their thoughts on paper? Of course, there are Small Business Development Centers but many people would like to have something on paper before they schedule an appointment.

Geoff: The first step in the capital raising process is to draft a capital plan for the growth of the business. The capital plan is used to identify funding requirements in terms of the amount, the timing, the structure (loan, lease or equity) as well as the most appropriate capital mix for business growth. It should also investigate alternatives to raising external capital.

Start by defining the business objectives and strategies. Identify all the costs involved in your business growth plans, including working capital requirements as well as the impact of budget over-runs and product development delays. Then look long and hard at the feasibility of your proposition. The capital plan will need to be revisited once the business plan is completed as this is likely to identify additional issues.

Determine what resources you require to grow your business, when they are needed and how to obtain them and whether these can be sourced from within the business. If external capital is needed then consider what you are willing to give/offer to achieve your business objectives and what will be the value of your equity in the business following the introduction of new capital.

If you were a dispassionate investor with a wide range of choices, what would make your business expansion or idea irresistible? Check if your plan is viable, sound and realistic by seeking professional financial advice from someone familiar with the size and type of your business.

Q2: My thoughts on business plans are that they should evolve with the business so you need one to get started and get financing, and another one to cover year one (maybe until you break even)? What are your thoughts?

Geoff: Creating a solid business plan is the first step toward success in your business venture. From obtaining funding to hiring employees to planning for expansion, a business plan can be your guide to keeping your business on track. Your business plan can keep you focused on your goals and keep you moving forward when faced with obstacles.

Qualify potential investors based on their preferences and availability of capital – not all venture capital funds have money available for start-up investments.

What makes an attractive investment opportunity

Some of the factors in making an investment opportunity attractive are:

 experienced and effective management – track record
 high growth sector
 high business growth potential
 replicable business model
 strong financial returns
 significant entry barriers – competitive advantage
 sales history or confirmed purchase intentions – customers
 market knowledge and distribution systems
 exit strategy

Q3: Imagine someone has started to execute their idea and it takes off faster than expected. They rolled into their career, they have clients, and are suddenly faced with time management and shaping their daily routine and responsibilities. Remember what you did when you were in that phase? How did you handle that?

Geoff: Every entrepreneur tries to maximize his/her start up growth by building and selling more product and services for the widest geographic area that he can support. This strategy is called “organic growth,” yet it alone may yield only a fraction of the potential you could achieve, unless you add the additional strategies of partnerships and M&A (mergers and acquisitions).

The real challenge here is balance. Too much emphasis on organic growth can become a straitjacket that leads only to incremental innovation and limited horizons. Too much reliance on growth via contracts and alliances makes you vulnerable to partners’ actions and conflicts of interest. Overreliance on acquisitions drains resources and de-motivates internal teams.

In every startup, as well as in mature companies, there is no substitute for constantly maintaining a pipeline of alternatives. This requires constant focus, as well as maintaining the skill set. to do things like the following:

There is no question that startups which manage the broadest alternatives for growth will gain competitive advantages. This selection capability is a skill and a discipline that every entrepreneur needs to nurture and develop over time. The world and current economic environments have changed. The past can be a deadly rear-view mirror. Look for new horizons.

Q4: Every start-up should use social media. However, a start-up must focus first on products/services before they can market themselves or promote themselves. Right or wrong? Can you promote yourself without having a line of products/services or should you wait?

Geoff: Going into business for yourself for the first time will change your lifestyle, both professionally and personally, and can involve a significant financial commitment.

There are many reasons why you may be thinking about starting your own business. You may have a great business idea or the opportunity to take on a franchise or to purchase an existing business. For most people it’s a combination of many factors including a desire to make money, greater autonomy and freedom, an opportunity to work at something they enjoy doing or the prospect of building an enterprise they can eventually pass on to their children.

Whatever the reason it’s an exciting venture that could provide an opportunity to enhance your lifestyle or achieve personal goals. Whether your business succeeds or fails depends on many things including your abilities, initiative and capacity to work, as well as the economic and business environment in which you’ll operate.

To give yourself every chance of success, be sure to make some time to pre-plan before diving into your business head first. Take a step back and consider the feasibility of your idea and your personal suitability for going into business. Some of the things you should think about are:

Personal Attributes
Technical Skills
Hobby or Business?
Business Management Skills
Feasibility of the Business Idea
Financial Capacity
Business Names
Business Licences and Permits
Business Structures
Business Starters Checklist

Q5: We all need to reflect on what we are doing to maintain the right balance. How often do you recommend that entrepreneurs evaluate their actions with their team or mentors to possibly adjust their course of action (aside from adjusting their business plan)? Quarterly?

Geoff: If we don’t know what the business is seeking to achieve, how can effective business decisions be made? How can conflicting priorities be resolved? How can people be held accountable? Conventionally, the answer to these concerns has been to write a business plan.

However, business plans are almost always written primarily to attract and retain capital. As soon as they are published they are out of date, and within a matter of months often bear little practical relevance to what’s happening in the real world. Even where they are in place, conventional business plans are seldom used to proactively manage the business. Typically, only the senior managers of the business are actively involved in the process of developing and using such plans. These plans rarely enable individuals to be held accountable for results.

Some key points for maintaining business continuity:

· Every quarter the business plan is replaced by the next version. This takes place at the quarterly strategic review meeting. This meeting is not the place where the next version of the plan is devised, but where it is endorsed as being in place.
· During the quarter, performance is reviewed on an hourly/daily/weekly/monthly basis against the agreed structure of expectations within the plan.
· During the quarter the most recently agreed version of the business plan is used as the starting point for developing the next version.
· The primary mechanism for developing the plan is that the senior person/team coaches everybody in his or her contribution to the plan. The plan structure provides the agenda for discussion.
· Everybody’s key objectives are documented within the plan, especially their short-term (i.e. current/next three months) objectives.
· Whilst in the process of delivering their agreed objectives in the current quarter, people are already giving thought to what they will be aiming to achieve in the next quarter.
· The primary role of the senior person/people is to ensure that everybody’s objectives are in alignment with each other. They have a key responsibility to ensure that everything that needs to happen to achieve the strategic goals of the business are the identified responsibility of a specific individual or team.
· All of the key result areas are monitored with Key Performance Indicators.
· For it to work, the plan is kept as simple as possible. Anything that doesn’t change much quarter by quarter should be taken out of the rolling business plan document and should appear as (optional) appendices, or supplementary documents. Examples might be market analysis, mission, vision, values, etc.

Q6: Someone approaches you with a great idea but is very hesitant to start on their own. What could you do to help this person?

Geoff: We use a capital raise diagnostic for strengths and weaknesses. The Capital Raising Diagnostic is a self assessment tool to help businesses determine their level of “investment readiness” or capacity to attract capital. It also forms part of the assessment for entry into the Capital Raising Program.

1. Growth and Capital Requirements

1.1 – Expected business growth (total not average) over next 3 years.

1 = < 10% 3 = 30 – 50% 5 = > 100%

1.2 – Average annual growth rate of the industry sector you will operate in.

1 = < 0% 3 = 10 – 20% 5 = > 30%

1.3 – Have you sufficient existing resources to fund operations into the future?

1 = less than 3 months 3 = 6 – 12 months 5 = > 18 months

1.4 – Have your resource needs for the next 3 years been fully costed?

1 = Estimate 3= Partly 5= Capital and cash flow needs fully costed.

1.5 – Have you identified the most appropriate capital mix (loan, lease, equity, etc) for your needs?

1 = no 3 = partly developed 5 = yes, capital plan in place

2. Management

2.1 – Do management skills meet current and future business growth / commercialisation needs?

1 = Not meeting current needs 3 = Meets current needs 5 = Meets future needs

2.2 – Have strategies been implemented for the future management of the business?

1 = No, rely on 1 person 3 = Some skills development 5 = Systems to develop / attract key people in place

2.3 – Are the business’s directors and advisors skills sufficiently diverse and well developed to meet business needs?

1 = Unsure 3 = Partly 5 = Yes

2.4 – Are there strategies in place to retain key skills?

1 = No 3 = Informal incentives 5 = Formal incentives and contracts

2.5 – Is there a well understood growth strategy for the business?

1 = Focus on immediate needs 3 = Focus on the next 6 months 5 = Long term focus formalised and understood by all

3. Business & Systems

3.1 – Do you have a comprehensive business plan?

1 = Not formalised 3 = Covers next 12 months 5 = Targets and details for next 3-5 years

3.2 – Are plans reviewed and updated regularly?

1 = Not formalised 3 = Updated annually 5 = Updated and reviewed on rolling basis.

3.3 – Have you identified company weaknesses and offered valid, productive solutions to these?

1 = Not identified 3 = Identified but no action taken 5 = Identified and strategies implemented to address

3.4 – Are there well developed financial management systems in place?

1 = Basic tax compliance accounting 3 = Financial management covers some aspects
5 = Budgets and monthly financial management reports for all aspects of business

3.5 – Are there well developed business systems and procedures in place?

1 = Not articulated 3 = Cover some aspects 5 = Systems and procedures documented for all aspects of business

4. Market

4.1 – Is there clear evidence of market need for your product / service?

1 = No 3 = Yes but anecdotal 5 = Yes, has been quantified

4.2 – Is there a global market for your products or services?

1 = No 3 = Yes but anecdotal 5 = Yes, has been quantified

4.3 – Have you identified the path to market, distribution channels and customer purchasing patterns?

1 = None 3 = Partly 5 = All of the above

4.4 – Have you completed your competitor analysis including identifying barriers to entry?

1 = No 3 = Partly 5 = Yes

4.5 – Are you able to list all potential domestic and international market segments?

1 = No 3 = Partly 5 = Yes

5. Product (or service) / Intellectual Property (IP)

5.1 – Has the product/service enforceable IP protection?

1 = No 3 = Partly 5 = Yes

5.2 – Is the ownership of the IP held by the entity seeking capital?

1 = No IP 3 = Licence arrangement 5 = Yes

5.3 – How many products could be developed as a result of the expansion / commercialisation project?

1 = Single product 3 = 3 – 4 new products can be developed 5 = Represents a technology platform

5.4 – Can the product / service be produced at a competitive rate?

1 = More costly 3 = Unknown 5 = Cost advantage

5.5 – Does the product / innovation represent a significant advance over existing products?

1 = no. 3 = Incremental improvement 5 = Significant advance.

6. Financiability

6.1 – Is there a sustainable competitive advantage?

1 = No 3 = Partly 5 = Yes

6.2 – Is your organisation able to supply audited financial statements and projected operational and financial statements?

1 = No 3 = Partly completed 5 = Fully

6.3 – Projected profits represent what percentage of funds needed to service borrowing requirements

1 = < 100% 3 = 150 – 200% 5 = > 300%

6.4 – Is the company compliant with environmental, equal employment opportunity and other regulatory requirements?

1 = No 3 = Well down the track 5 = Yes

6.5 – Asset backing (business assets and shareholder guarantees) is equivalent to what percentage of borrowings?

1 = < 100% 3 = 125 – 150% 5 = > 200%

Questions 7.1 to 7.10 are equity related questions

7. Equity Finance A

7.1 – Are you able to provide details of types of shares and share distributions to potential investors?

1 = No 3 = Partly 5 = Fully

7.2 – What will the venture return an investor (% return pa) ?

1 = Less than 10% 3 = 20 -25% 5 = Greater than 35%

7.3 – Can you demonstrate a well thought out exit strategy?

1 = No 3 = Partly developed 5 = Yes

7.4 – Have you perfected your investment pitch / presentation to potential investors?

1 = No work 3 = Partly 5 = Fully developed and assessed

7.5 – Are you ready to undergo the due diligence process?

1 = No 3 = Partly 5 = yes

7. Equity Finance B

7.6 – Are the shareholders realistic about your company’s market value?

1 = No 3 = Yes 5 = Have accepted an independent valuation

7.7 – Are private and company financial affairs separated in the operations of the business?

1 = Cash often taken 3 = Drawings captured in financials 5 = Totally separated

7.8 – Can you clearly articulate the attributes of your ideal investor?

1 = No 3 = Partially 5 = Fully

7.9 – Are you able to supply a copy the the company constitution and shareholder agreements?

1 = No 3 = Being developed 5 = Yes

7.10 – Are the company’s accounting policies in accordance with accounting standards?

1 = No 3 = Partly 5 = Fully

If you have any questions please leave me a comment and I will answer as soon as possible.

March 3, 2014

A balanced business

The pursuit of business success often comes at the cost of our personal life. We do not say no to another international trip. We put in the late-night hours to get a proposal just right. And we often throw ourselves into our work to avoid getting close to people or of coping when they disappoint us.

Could it all be different? Can you build a balanced business that leaves room for a personal life? And what if, in this business, you get to work with people who are interested in achieving the same kind of balance?

This thought became my new business philosophy: sharing, encouraging others – and ultimately trust. My mission statement is based on this thinking, philosophy, and discovery.

I started writing my mission statement by exploring my perceptions of various words. For example, I thought that confidence meant having or showing certainty; surety meant having complete trust in someone or something; respect required genuine actions based on loyalty. I considered whether people too often jumped to conclusions, analyzing a person or a situation too quickly and shallowly. Soon I was ready to clearly formulate my thoughts.

Are you ready to write your mission statement? How do you balance your business with your personal life?

February 27, 2014

Are you investment-ready?

The first step in raising capital is to draft a capital plan for the growth of your business. The company then uses this plan to identify its funding requirements in terms of the amount, the timing, the structure as well as the most appropriate capital mix for business growth. The plan also should look into alternatives to raising external capital.

By defining a company’s business goals and strategies, you find all the costs involved in the company’s business growth plans, including working capital requirements as well as the impact of budget over-runs and product development delays. Then you must take a long and hard look at the feasibility of your plan.

The capital plan and the business plan compliment each other. They both identify issues and risks. You must decide what resources your company requires to grow, when those resources are needed, how to get them — whether they can be sourced from within the business – as well as what the goals are and the value of the equity in the business after the introduction of new capital.

Attracting equity investment is not an easy process. Businesses need to be well-prepared and investment-ready to maximize the potential for success. A failure to be investment-ready is the most common barrier to accessing equity investment. Second chances are rare, so it is important to become investment-ready before establishing relationships with potential investors, regardless of a company’s stage of development or capital needs. Investors can be found among friends, family, venture capitalists, financial institutions and business angels, but wherever the capital is found, they need to know you are investment-ready.

When investors put their money into a company, they invest in the capability of that specific company and its people.

I made a list of issues that a business must address as it works to become investment-ready: