November 22, 2010
“I Love the Smell of Strategy in the Fall”
One of the great things about living in New England is the change of seasons. While we may not love each and every season and its characteristics, there’s something both comforting and energizing about the change.
For those of us in business, the four seasons provide handy clues and reminders about the challenges, opportunities, processes, and commitments we face as entrepreneurs and managers. From a functional and administrative perspective, I’m used to thinking of spring as tax season, summer as vacation season, fall as preparation for year-end, and winter as time to hunker down and minimize expenses. Of course, depending on which industries you’re in, the seasons can represent periods of time when you experience vast differences in the levels of revenue that you generate.
From a strategic planning perspective, fall is the perfect time of year to begin reflecting on your company’s performance thus far. By mid-October, your organization should have clean financial performance data for the first three quarters of the year. I recommend taking this information and, utilizing historical data and trend analysis, developing projections for fourth quarter performance and year-end results.
Ideally, you will then cross-reference your financial performance data with goals and objectives that have been set forth for the year, and draw conclusions and make determinations based on the review process.
Some companies have solid processes and commitments in place for reviewing a dashboard of key success factors on a periodic basis. Many solopreneurs and small businesses rarely look at financials and lack the experience and training to utilize them for planning purposes.
At the very least, we should all take an organized break from the rigor of daily operations and reflect on what is working well with our businesses, and where there are opportunities for improvement. Then, we can begin by developing a simple, actionable plan to address these obstacles and opportunities.
Even though this is considered common sense and old news for many business people, the vast majority do not practice it regularly or effectively. Those who do take the time to reflect on their goals, competencies, and changing opportunities in the marketplace, however, are far more likely to develop sustained competitive advantage.
As the holiday season approaches, carve out some time in the near future to review your financial statements as part of your planning process. And, if you need help in this process and can benefit from the participation of an experienced entrepreneur, manager, and accountability partner, don’t hesitate to reach out to us.
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November 11, 2009 - From the Lance Manion
Chronicles
Lance Manion stepped out into the cool fall air. The sun was just beginning
to peek through the frost-covered branches, and it's presence sent gray,
wispy clouds of moisture upward.
He opened the door to his 2007 BMW X5, artfully managing the precarious
balance of his briefcase, uncovered coffee cup, and car keys. After placing
the coffee cup in the holder and the briefcase on the front passenger floor,
the keys notoriously slipped from his grasp into the mysterious void between
his seat and the center console.
While reaching among the ubiquitous collection of pens, pocket change,
gum wrappers, and reading glasses, his fingers grazed the smooth edges
of a business card. He carefully grasped the card with two extended fingers
and gently withdrew his hand with precision and deft.
While the throaty hum of the X5 reassured him of impending warmth, he smiled
as he glanced at the contact information on the card. Only 21 hours ago,
he had been sitting with Sam Westerfall, the Founder and CEO of a closely-held
manufacturing company. As Lance smoothly extolled the virtues of periodically
revisiting the strategic planning process, Sam listened with a familiar
lack of interest while picking the remnants of an everything bagel from
his teeth.
Sam's feigned interest and lightly-guarded skepticism about the strategic
planning process was not unfamiliar to Lance. The Westerfall company was
founded 37 years ago and remained a major player in the seamless gutter
mounting clip manufacturing industry. Business was good, though sales had
been flat over the past few years and net profit was declining as operating
expenses steadily increased. The company's business model remained firmly
planted in the 1970's and Sam had been hard-pressed to entertain his son's
idea to reassess their product portfolio and diversify into markets that
could produce additional revenue streams. It was a situation that Lance
encountered frequently in his family business consulting practice.
Over bad office coffee and a dozen fresh, assorted Dunkins Munchkins, Lance
calmly suggested that every business needs to periodically revisit the
strategic planning process in order to ensure that the company maintains
a strategic fit between their goals and capabilities, and changing opportunities
in the marketplace. Too many companies, he suggested, operated in the same
manner year after year, focusing myopically on their existing product portfolio
and the challenges of daily operations. He asked Sam if he ever took the
time to sit back and think about why he's in business, and what his long
and short term goals were for the company and his family.
Sam wiggled in his torn armchair, replete with rich Corinthian leather, and reached for another unfiltered Parliament while grumbling, "I don't need to think about why I'm in business. I know why I'm in business.....it's what I do".
