Controlling Your Business In Uncertain Times 2011 Shamrock

Facts of Life � Most of us waited too long to deal with the recession. � Our hope was a return to normal. � Our goal was survival. � Now … …are we waiting too long to get moving again?

The Tyranny of Survival �It dominates your thinking. �Confidence is replaced by fear. �You develop a “bunker” mentality. �You move too slowly.

Current Reality � It [is] the best of times, it [is] the worst of times � It [is] the age of wisdom. It [is] the age of foolishness, […] � It [is] the spring of hope, it [is] the winter of despair. � We [have]everything before us, we [have] nothing before us, […] Adapted from The Tale Of Two Cities (1859) Charles Dickens

Simplified Reality ** ** Voted the Third Most Annoying Phrase of 2009 Marist Poll

Our Concern More businesses have the potential to fail during the recovery than failed during the recession.

Why Businesses Fail High Growth – capabilities do not keep up with revenue growth. Fear of Investment – not enough invested in time, people, systems and processes.

Why Businesses Prosper �They monitor the fundamentals – of the �They control their growth – ensuring skills �They follow trends – investing time, business in good times and during periods of uncertainty. and competencies keep pace with revenue growth. people, systems, and processes in advance of the need.

The Fundamentals? Know why you exist. Know what you intend to achieve. Employ the very best people. Focus on both the present and the future. Employ a management system. Minimize surprises.

Professional Management �A philosophy and a human endeavor. � System to be practiced by owners, key managers and employees. � Defines optimal performance in any business environment. � An ongoing focus – not a one-time event. � Continual evaluation process – why you exist, who you serve and what you offer.

DOC Model* * Professional Management System

� Founded in 1996. � Non-profit operating foundation. � Subsidized by the Mathile family of Dayton, OH. � Exists to help private businesses prosper and create jobs in their communities. � Assisted owners. over 5, 000 companies and business

Guiding Philosophy �A unifying set of personal values, attitudes and beliefs. � An understanding and articulation of the outcome to be achieved by all stakeholders.

What it Does � Explains your reasons for putting people, time and capital at risk. � Defines what you will accomplish. � Creates focus for the enterprise. � Drives day-to-day work. � Provides the courage to follow a chosen course when facing uncertainty.

“There is surely nothing quite so useless as doing with great efficiency what should not be done at all. ” Peter Drucker Managing for Business Effectiveness HBR May / June 1963

Building Your Philosophy Think Plan Act

Think � Why do you exist? � What do you intend to accomplish – and is it worth it? � What do you do well that matters – and how do you know? � What factors will impact you most? � Where should resources be invested?

Plan � Establish goals – growth, financial, business mix, etc. � Select the “right” customers for the future. � Understand � Evaluate � Identify the depth of their needs. your capabilities to serve them. competitive threats.

Act � Focus on the important – not just the urgent or immediate. � Invest resources in those programs and customers that fit best. � Aim for small victories and broadcast successes. � Continually offerings. evaluate relationships, processes and

Navigating in a Period of Recovery � First, � Be believe there will be one. clear on your desired outcome. � Think � Put forward and outward. an action plan together. � Build your future business around the right customer and the right offerings.

Performance Control Establish performance standards for the business. Use vision and mission to drive the work of the business. Trust your people to do their job. Focus on outcomes to be achieved – not the effort expended. Hold everyone accountable for the results. Reward those who perform.

Your Role as the Leader � Be open – share the entire picture. � Be decisive – move rapidly with the best info � Be accountable. � Be a unifier – challenge the team to be part of � Be willing to change and grow. available. something that will last.

The Role of Your Key People � Buy-in to what needs to be done – or move on! � Believe they have a responsibility to the business – not just a job. � Do what they say they will do – and do it on time. � Welcome being accountable.

One Final Thought Never accept “normal” again!

Think. Plan. Act.