Finding Your Vision? Why Is It So Difficult?

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I was doing some research for a book I am writing, part of which is about the importance of having a vision. What has become clear, especially in the UK, is how little understanding there is about this topic. This was brought more into focus whilst watching the documentary series "The Men Who Built America", what made them stand out was not only the strength of their Vision but the fact that they had one at all.

My experience in the UK with owner businessmen, is that it is quite challenging getting them to understand how important having a vision is to the long term prosperity of their business. When I give training courses about leadership of high growth businesses, the section on Vision is one of the most challenging. This is because I can count on the fingers of one hand how many business owners actually have thought out what their vision is, whilst the majority just dismiss it as some sort of consultant "mumbo jumbo".  They simply don't get it.

English: DOE Departemental Enterprise Vision (Photo credit: Wikipedia)

I wonder if it’s something about the British and their cynicism that prevents them from grasping the value of understanding the purpose of their business. I don't mean from a personal perspective ie to make money, retire in 5 years, those statements are just measurements. I mean having a real business Vision:  something that describes what it is about the way you do what you do, that will have customers flocking to buy your product or service. To paraphrase a comment about George Bush senior and his struggles with the vision thing "If you don't know where you want to go why would you expect others to put themselves out to help you get there?"

That’s essentially the simple great benefit of having a vision. It is something that you can use to bind your employees and your customers to you as they will see, understand and share your Vision and as a result will want to continue to be your customers or employees, to help you get there.

Most of us haven’t found that vision or purpose and so it is much easier to find a substitute and embrace someone else’s, rather than to try to uncover your own. By finding your vision you become one of the few and really separate yourself from your competition. Once found, it immediately makes decisions easier by simply asking does doing this move me towards my vision? You will instantly discard those actions to which the answer is “No”, allowing you to concentrate on those things that will. This immediately makes your business more effective, as you have a clear simple process on which to test effort and separate yourself from those who don’t know where they are going, so, do everything “just in case”

Let’s be honest, uncovering your vision is difficult and getting it down to a succinct phrase takes a lot of effort. Do you really think that the famous Disney vision "to make people happy" came together in a blinding flash? It was developed and honed over time to something that encapsulated the Vision in a simple sound bite. 

Just because we don't generally think at this level or in these terms doesn't mean we can’t if we don't put our minds to it. The first stage is to just put something down and work on it over time until you think it reflects your purpose.

Here are some examples of small business visions, but not small, business visions. I asked the members of the LinkedIn group that I run “managing high growth” if they had a vision and if so what it was. These were the results. I think these examples are more relevant than those famous Visions of the large corporates.

In case you’re asking mine is "To enable high growth businesses to grow faster for longer and with less stress" Others are “To help clients increase sales and reduce time and cost” and “To create an environment where people feel valued”

So uncover your vision and get yourself clarity in your business, separate yourself from your competition and start being more successful. If you think you'd like some more help in extracting your vision contact me here

Exigent Consulting provides specialist services for Managing High Growth, Business Turnaround, and Mentoring to the Small and Medium Business. We help business owners improve the profit performance of their business. 

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Social Networking How To Stop it Becoming a Time Sink

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Over the past 5 years, yes it's really that long, social media or social networking has moved from the fringes of marketing to centre stage. At the same time industry pundits are recommending that we engage with people across more and more platforms. Yesterday for example I was sent and an email entitled "the 9 must use social networks". 9! This is clearly getting out of hand, how am I going to do any work?

Now even a dinosaur like me recognises that I need to utilise this route to market but how can I  keep our social networking under control. We all know that the beauty of using social networks for marketing it is that it's free. The bad news is that using social networks for marketing is free. What do I mean by this? Because using social networks is free we tend to ignore one of the key measurements for successful marketing that of return on investment! All to often we become seduced by the fact that we can connect with all sorts of people without ever asking ourselves the key question what am I getting out of this effort. In this way social networking can easily become a time sink, where we are spending increasing numbers of hours without really looking at the returns.

If by contrast I send out a sales letter it's pretty easy to work out the leads from that mailing. The problem I have found, at least, for most businesses is that returns from social networking are a bit like wait for a bus, nothing much happens for a long time and then suddenly 3 turn up at once. 

Faced with this situation I wanted to come up with a few key questions I used  to help me and subsequently my clients work out how important the use of social networking might be as part of their marketing mix, and therefore how much time should be committed to social networking. The list is by no means exhaustive but it short at least help people get social networking into some sort of perspective, they are:-

1 What do I want to get from my social networking effort? More leads, more profile or more sales?

2 Are my prospects active on social networks? If not why bother?

3 Are my products/services something that is currently actively marketed through social networking? If not. Is there a good reason?

4 How widely spread are my potential customers. Does it matter that there's billion users on Facebook if my customers base is limited to 3 miles from where I live?

5 How much time can I reasonably spend on social networking? 30 mins  or 3 hrs a day?

6 Do I understand enough about social networking to use it effectively, if not, do I have the desire to learn through training?

7 Which social networking platform is best suited to my needs?

8 Do I understand that using social networking is for life. Not just for Christmas.

So what do I use?

Twitter daily, LinkedIn daily, Blogging twice monthly, Email marketing twice monthly and a bit of Facebook but mostly social stuff, it is meant to be social networking after all.

Exigent Consulting provides specialist services for High Growth Business, Business Turnaround, and Mentoring to the Small and Medium Business. We help business owners improve the profit performance of their business. 

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The Board Meeting How a Functioning Board Works

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Having recently written about the problems of dysfunctional board meetings it seemed logical to put together an article about what functioning board looks like. Without stating the obvious a functioning board meetings are the opposite of a dysfunctional board.

Lets remind ourselves that a board meeting is about strategy and policy its about looking out and forward. Operational management issues are kept for the management meeting. 

Typically a fully functioning company board will have developed a clear strategy for moving the business forward. Strategic planning will have been evidence based and discussed and agreed. This give the board meeting a common purpose and a framework and context in which to hold discussions.

Image via Wikipedia

Attendees come fully prepared for the board meeting. This means that reports on topics of interest or key issues for the business will have been prepared and published in advance of the meeting ideally at least 48 hours before. This allows other board members to review the information prior to the board meeting. The benefit is that the discussions now focus around the issues rather than simply seeking information about the issue.

The board meeting will have a standing agenda, which typically includes a report from the Chief Executive and each functional executive director. Often fully functioning board meetings will have standing agenda issues to be reviewed on a semi annual or annual basis, for example salary policy, marketing plan, budgets, and health and safety. These agenda items support good governance of the business and keep the discussions at strategy level.

Clearly a strategy is nothing without implementation and a functioning company board will exhibit confidence in their management team and delegate implementation to them but with director oversight. 

It is importance that companies use board meetings as an opportunity to get an external view of their business; external advisers or non executive directors are a valuable addition. Their role is to provide knowledge of  the industry or extensive business knowledge that can be used to support or challenge the executive members of the company board. This kind of expertise is extremely valuable especially for owner managed business where there tends to be a shortage of trained management. It does not have to be a formal appointment it needs to be some who you trust and from who you would accept criticism. 

The key to a successful company board meeting is open discussion. This allows all issues to be aired and all proposals properly challenged.  In this environment healthy respect of each members position is vital. Board meetings work best when there is a consensus view of the actions going forward and to do this it requires open discussion.

Another obvious but often overlooked matter is the need for a minute taker at the board meeting who is tasked with publishing the minutes and actions arising from the meeting in good time. Normally less than a week after the meeting.

So to sum up board meetings should be about strategy and not operational matters. They should be open and drive actions for the rest of the business.

Exigent Consulting provides specialist services for High Growth Business , Business Turnaround, and Mentoring to the Small and Medium Business. We help business owners improve the profit performance of their business. 

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3 Steps to Successful Sales Forecasting

In most businesses this (the 4^th) quarter is the busiest and much sales effort is focused on getting the best results from these critical weeks. However good sales managers are also preparing get to grips with next year's sales targets. This is an important activity because the earlier issues are identified the more time there is to adjust strategies to meet them. Whilst it is important to continue to focus on getting the numbers for this year, for sales management it is vital to understand the nature of the challenge for next year. This analysis is as relevant for the owner managed business where the MD is often the sales manager, as the larger organisation where is has a well developed sales function.

Often it takes a month or two to re orientate your sales activity and doing it now (in Q4) gives 12 months to shoot for next year's target rather than maybe 9 or 10 months if left till the first month of the New Year.

Putting together a simple forecast requires one to break projected sales down into 3 areas, Known, Seen and Unseen. So what do these 3 categories mean? What is their significance? Let us look at each one in turn. This forecasting method is really only applicable to B2B sales, retailers have to use a different method which will be the subject of a future article.

Known sales are those which come from your existing accounts, so you can, based on previous years, fairly accurately estimate your income for the coming period, whilst we all know that individual account incomes vary from year to year it should be possible to approximate the likely revenue. This number for most businesses this will represent a large % of the overall target

Seen sales relate to a category of sales which estimates income based on the long term pipeline and an estimate of what percentage of sales tend to come from new business. Typically this would be the total value of the pipeline factored by the likelihood of success.

Unseen sales comprise that proportion of the sales target where you have no indication of where these sales are coming from. These are, t0 paraphrase Donald Rumsfeld, "unknown unknowns" This element represents the risk in your forecast. The larger the percentage of unseen sales, the more risk there is in the forecast.

Once you have these figures it should also direct you where you need to concentrate your sales effort be that new business development or maximising revenue from your base accounts. If you're trying this for the first time don't be too cautious in forecasting revenue, there should always be an element of unseen in the forecast depending on the type of business it can vary between 10-35% as a norm, anything more than that would indicate that the forecast is too optimistic and is unlikely to be achieved.

Forecasts have to support management objectives but if they are too unrealistic the sales force will very quickly find this out and the target will be disregarded and there will be no real attempt to achieve it. Accurate forecasting is nonetheless an important component in managing your business and an important tool in how it will be developed.

ExigentConsulting specialises in providing Business Turnaround, Sales, Marketing andMentoring to the Small and Medium Business.We help Business Owners improve the profit performance of their business