Not the top, not the bottom: the first strategy for middle management

The First Strategy
Hire people in the middle who have aspirations, who want to grow and develop and are mobile. Thus you have leaders who are eager for opportunity. They are attracted to moving and working in a new location is attractive for them, and they are excited about establishing a new beachhead for the company.

Create a process in which, as one of its yearly goals and objectives, top leadership has to develop and take courses. In one company I worked with, if you could not demonstrate to the CEO that you had improved your skill set and thinking abilities in the last year, you were not eligible for a raise no matter how well you had performed. In another company, if you aspired to be a director, you had to get an MBA. These policies can supported a company in dramatically growing both revenue and profits.

For more information about CMI's process for improving your leadership team click here.

Building a G.R.E.A.T. Company

Components of a G.R.E.A.T. Company IV

A: Attitude. While “entrepreneurial” and “generous” speak to this type of attitude, great companies also exhibit plenty of spunk, vim and vigor. They have attitude with a capital A. This may mean going the extra mile for the customer. It may mean being on time, no matter what. It may mean that top executives double up in hotels to cut costs and contribute to their profit. Whatever the context, great companies exhibit an attitude and view of the world that clearly sets them apart.

Want to change your company's attitude?  Visit the CMI website.

Building a G.R.E.A.T. Company

Components of Great Companies II

R: Revenue and Reflection. Revenues are central to any business. The reason great companies stand out is they generate a lot more revenue than their competition. Revenue can also mean (although not necessarily) that they generate profit. For many growing companies, profit can be elusive during the times when revenue must be put back into infrastructure and additional resources in order to grow. In great companies, revenue is understood by everyone, not just the top executives. All employees understand how revenue is generated and consumed. More important, each individual understands how he or she can increase and impact revenue.
Reflection is the planning piece. In great companies, long-term success is supported by some sort of disciplined business planning process that engages the leadership group. The leadership group regularly assesses where the company stands and what future they want to design. The leadership also provides an organized and focused way for problem solving and lessening the pain of growth. Early on, great companies establish and implement a formal annual planning process from which to design their growth. In other words, Reflection can lead to Revenue and long term success.

Want to create a wise and profitable culture in your company? Visit the CMI website to learn more.

Building a G.R.E.A.T. Company

Components of Great Companies
Now that we have defined a great middle market company, what components make up greatness? They can simply be found in the acronym G.R.E.A.T.

G: Generous and Growth. The dictionary defines generous as “liberal in giving or sharing; not petty or mean; magnanimous; abundant and ample”. These are also apt descriptions of a great company’s culture. Great companies provide space for people to grow and develop. They accept human foibles and allow mistakes to be made. Great companies are not mean-spirited or punitive. They have rules, but only a few. They are willing to give and bend, and they come from a mindset of abundance while avoiding notions of scarcity.

Generosity enables Growth. Growth causes all the progress and wealth of a company but it also causes all the problems and pain. Without growth, a company stagnates and becomes internally focused. Great companies use growth as the engine for their internal and external development.  
Want to create a generous and profitable work culture at your company?  Visit the CMI website.

Making Green From Green

If you think “sustainability” is just a fad, you were probably one of those who thought climate change was a myth and organic food would come and go. Business sustainability is here to stay. Your organization must make use of the green opportunities available.

In my view, sustainability means your business is conducted in such a way that it can exist without being environmentally destructive. At the very least,environmental neutrality is what your company wants to achieve. An even better aspiration is to positively impact the environment.

There is opportunity for you and your company to make money as you create a green reason for customers to buy from your organization. The sweet smell of profit and differentiation wafts through the air. This epitomizes “making green from green.”

So what can you as a business do? Consider your options in manufacturing, packaging, and recycling products. Think about the savings you can achieve from a green facility. Research government grants and funding available for sustainability initiatives. Look to see where, by cutting costs and differentiating your products, you can make green from green. When your customers see the value that your environmental actions have for them and their world, they will embrace your company with new vigor.

Need some more ideas?  My new book, Front Line Heroes: Battling the Business Tsunami While Developing Performance Oriented Cultures outlines them.

The Second Rule of Planning

The second golden rule of planning is to, “make sure the design of the planning is one that will get you a good result. I am not a believer of leadership teams locking themselves in a room at a resort for two to three days. This type of planning may be sprinkled with some golfing, gambling or other type of “fun” stuff. From this design, a strategic plan is supposedly born and created.

The problem with this design is that it curtails critical thinking. This process begins to smell of “plan in binder” syndrome. Poke me in the eye with a hot stick. If you do all your planning during one session you risk just doing more of what you are doing in the present. There is no opportunity for research or involving others within the organization who are not at the planning session.

Here is what to do. The process should take place over two to three months and take three to four days. It is predicated on white papers and dialogue. Listening and understanding are critical. Better research ensures better debate and thinking. “What is a white paper?” you ask hysterically. “Hang tough,” I say. That is covered in rule five.

For more information about CMI's planning process visit our website: www.cmiteamwork.com 

The first rule of planning

The first rule is “always pick the right team for planning.” This poses the question of who should be part of the planning team. This is an important question. It is important that planning team members are people who are committed to, and can add value to the conversation about the growth of the company.

The only exception is if there is a key employee or manager you want to develop. If you want them to better understand the strategic issues facing the company, then it might make sense for them to be a part of the process.

In addition you can have members of the planning team who are outside of the leadership group. These could be sales people and other key employees. It important that you vet them and ensure that they are of the quality and stature that is required for being a part of the planning group. It is also important that they are all getting their jobs done and are employees of stellar standing within the company.

A number of times over the years I have seen the wrong leaders and key employees involved in planning and their participation actually hurt the effort. Pray give us an example you ask? Ok, well there was Jason who in the middle of the year abruptly left the company.

After an investigation it became apparent that Jason was not returning customer’s calls. In fact, lots of work around Jason’s customers was not getting done. Yet we spent a lot of time in planning on improving customer service. Jason had actually taken on being a Champion in and working on improving customer service. Then we got to see what he was actually doing—talk about a buzz killer. It was enough to make me want to use that aforementioned pointed stick.

How did this happen? What allowed Jason to be on the team that was led to this dark place? Clearly there was a lack of supervision. His manager was not providing oversight. What was really going on you ask? This could be the subject for an article or book and that is for another time.

Then there was an HR manager at a manufacturing plant who took employees into her office and gossiped about managers. A number of times she would run out of the planning session crying. Again a buzz killer. Then she left. Thank GOD and music please!

After her departure, the CEO added Lucinda to the team. She was young, energetic, knowledgeable and clearly had a vision of what the company could be. Her role was completely different than the first HR manager. Lucinda’s addition to the planning team was constructive and positive.

So, the message here is pick wisely and selectively. Members of the planning team must be able to maintain complete confidentiality and be fully engaged in the growth and well being of the company. Select the employees who are passionate about growing the company, developing an extraordinary organization and being the CEO’s partner in accomplishing those things. Don’t have people be part of the planning process only because of their position or accept mediocrity.

For more information about CMI's planning process visit our website: www.cmiteamwork.com

In my thirty years of conducting planning processes, I have never seen a healthy company maintain long-term growth without ongoing planning. Planning is about growing and improving your company. At best, when you don’t plan you get maintenance of the status quo. At worst, you ignore problems and challenges that significantly damage or destroy your organization.

The time has come to present a streamlined list of CMI’s most critical rules for planning. There are only 120 of them. As you can see, we have really pared them down. So, music please! What?OK! OK! Simmer down! Take it easy! (You get overwhelmed so easily.) Next week we will go with just seven rules for successful strategic guessing/planning. Is that better?

For more information about CMI's planning process visit our website: www.cmiteamwork.com

Who Plans on an Annual Basis?

It always shocks me how many businesses do not formally plan. Recently, at a conference, I asked a group of CEOs, “Who plans on an annual basis?” Only a quarter of them raised their hands. I was shocked. In addition, when pressed on why they did not plan they said they were too busy fighting fires to have time for that.

They then complained about low growth, no profits and blamed the economy for their problems. I felt better at that point with their clearly powerful and insightful analysis. Clearly they were Dunderheads. These CEOs did not make the connection that planning helps you deal with the economy and the issues that challenge your business. I am getting my pointed stick dipped in organic monkey dung to deal with these guys. It is organic dung because they are CEOs after all.

It is true. Many small- to mid-sized companies do not plan formally, just as many adults do not exercise. Yet we know exercise is good for you. It helps you live an improved quality of life. Routine exercise allows your body to maintain its health and vitality. Strategic breakthrough business guessing/planning works for businesses in much the same way as exercise does for the individual. It does not guarantee health, but exercise certainly dramatically increases the likelihood of having it.

For more information about CMI and Business Planning visit our Website: http://www.cmiteamwork.com.