As I made the initial transition from the Corporate day job earning a salary,to one of advising business owners and shareholders I initially struggled about what to call my business and how to present myself.
Consultant thought I , but that comes tainted with the principle of asking clients questions and replaying the information back to the client....I jest of course.
Mentor , a new word for me , which means you coach or teach people how to run a business. Sure that is what I wanted to do and that is what I do now , but it is more than that.
I have spent some months helping businesses and the truth is that I do build operating processes , I do recommend financial prudence and control , develop appropriate sales and marketing strategies , but even more valuable teach people how to manage other people and situations.
I meet clever people all the time, some are bordering on genius , but the first rule of running a business is often overlooked.Excellent business processes reduce the need for personal intervention and involvement,but hands on support is a vital tool in helping employees meet targets consistently.
However bizarre this sounds , I was told in management development to welcome problems. This infers human interaction and understanding and it works. I did not need to be taught, I say with no arrogance , as it seemed a natural thing for me to do , but demonstrating leadership is the root of the problem and solution
Social networking is the medium by which 500 million people interact with humankind on Facebook alone.Bosses today have to compete for attention of employees in a world where competition is Global and economic growth is uncertain.Staying in touch with people in the business is key
Wednesday, 23 March 2011
Monday, 22 November 2010
Whole business management
I was invited recently to meet the board of a family company who were clearly developing a strategy to diversify and manage the risks to the group. They were also aquisitive and had a desire to develop into high added value manufacturing with low overheads on sales and marketing .
Initially the discussion revolved around operational and manufacturing improvements ,as they were considering a merger with another like company .Clearly there was a disconnect about the selling and marketing strategy , which has a significant bearing on the correct manufacturing approach.
Furthermore , after asking a few questions around the business , the management of product related margins ,design and sales and operational planning issues were unanswered and decisions being considered meant they were building on unsteady foundations.
The point I made was that business has to be managed as a whole business . It does not matter what starting point you use to build the jigsaw , but recognition about whether all the pieces are available is key to a successful outcome
I am looking forward to helping them reach their goals
Initially the discussion revolved around operational and manufacturing improvements ,as they were considering a merger with another like company .Clearly there was a disconnect about the selling and marketing strategy , which has a significant bearing on the correct manufacturing approach.
Furthermore , after asking a few questions around the business , the management of product related margins ,design and sales and operational planning issues were unanswered and decisions being considered meant they were building on unsteady foundations.
The point I made was that business has to be managed as a whole business . It does not matter what starting point you use to build the jigsaw , but recognition about whether all the pieces are available is key to a successful outcome
I am looking forward to helping them reach their goals
Self Marketing
At a recent Network event it occurred to me that the likely possibility of securing business with the type of businesses represented made the task of marketing myself a great deal harder.
Two main points were obvious. Single person life style businesses do not want to pay for advice , and many other smaller businesses with up to five employees often are not yet aware how improvements can be brought about , because they are still learning.
James Caan said recently that it is difficult to know what you do not know , and I agree but there lies the challenge.
Good advice is not about when things are already so obviously wrong . Good advice is about the business education process , the learnings from people like me , who have endured many different business experiences , in various companies in different sectors.
Running a business to achieve the goals for a private owner is often the first experience ever of running a business.If I want to avoid severe plumbing or electrical DIY issues , I employ an expert.
Business is about knowledge of what to do, and also , how to reduce the risks of either making the wrong decisions or in fact drifting into situations which are obviously avoidable to the trained eye.
Business advisors can explain their background and give testimonials which help you to assign a value. The key word is value not a cost. Choosing the right sort of help can enable you to Profit from Experience.
Two main points were obvious. Single person life style businesses do not want to pay for advice , and many other smaller businesses with up to five employees often are not yet aware how improvements can be brought about , because they are still learning.
James Caan said recently that it is difficult to know what you do not know , and I agree but there lies the challenge.
Good advice is not about when things are already so obviously wrong . Good advice is about the business education process , the learnings from people like me , who have endured many different business experiences , in various companies in different sectors.
Running a business to achieve the goals for a private owner is often the first experience ever of running a business.If I want to avoid severe plumbing or electrical DIY issues , I employ an expert.
Business is about knowledge of what to do, and also , how to reduce the risks of either making the wrong decisions or in fact drifting into situations which are obviously avoidable to the trained eye.
Business advisors can explain their background and give testimonials which help you to assign a value. The key word is value not a cost. Choosing the right sort of help can enable you to Profit from Experience.
Wednesday, 3 November 2010
Its not a V dip
Its official we are not suffering the V shaped recession but if anything we could be heading for a W recession.Latest punditry from the CEO of Shirlaws has worked out a model which times the cycle where the economy is compared to other finance market events.
The conclusion is that we are in the flat part of the unusually shaped W , where the upturned v in the middle of the W has a table top. At the end of the flat period we then go into a dip followed by a period of growth, perhaps for a as many as 5 years
Hope you are still with me , as there seems to be a great deal of sense in this prediction.The key for businesses however , is that they need to be in a state of readiness for the upturn , rather than still being in the cave waiting for the storm to blow over.
The fact that markets are starting to recover has no bearing on the fact that business is out of step with the fund management cycles which actually started in March 2008.Markets are saying we are at the end of the first part of recession , and business is still cutting cost rather than investing so future growth is unlikely for a while.
My own view is that businesses in any case should be measuring performance based on
use of cash to generate profits and cutting waste to build for the future . That way they will be ready for the next push. Reality is that businesses should be doing that anyway.
Free consultations available : Just ring 01953 605499
The conclusion is that we are in the flat part of the unusually shaped W , where the upturned v in the middle of the W has a table top. At the end of the flat period we then go into a dip followed by a period of growth, perhaps for a as many as 5 years
Hope you are still with me , as there seems to be a great deal of sense in this prediction.The key for businesses however , is that they need to be in a state of readiness for the upturn , rather than still being in the cave waiting for the storm to blow over.
The fact that markets are starting to recover has no bearing on the fact that business is out of step with the fund management cycles which actually started in March 2008.Markets are saying we are at the end of the first part of recession , and business is still cutting cost rather than investing so future growth is unlikely for a while.
My own view is that businesses in any case should be measuring performance based on
use of cash to generate profits and cutting waste to build for the future . That way they will be ready for the next push. Reality is that businesses should be doing that anyway.
Free consultations available : Just ring 01953 605499
Thursday, 7 October 2010
Cash Management
I was asked by a small business owner yesterday about the management of finance in his business , and in particular cash.I explained to him that the finance management was not just about creating a set of management accounts and filing a year end report.
It seems rather insulting when speaking to a courageous business owner but the reality , as with many , he did not know what he did not know.
I explained that the main components of cash control were planning /forecasting ,spend control,margin analysis,working capital and debt management.
Seems rather obvious when one sets it out but only if one has experienced it , does it become obvious. This intrigues me because , having gone to countless courses and with a University education ,it is the day to day management of very practical things that actually is missed off the curriculum.
The reality is that many businesses fail because there is not a complete understanding throughout the business about what is actually happening on the ground in relation to financial impact.
We were able to help by looking at his own systems and allowing him to gaze through the looking glass to understand his business in a more definitive way.As an entrepreneur in a hurry, he was told "make haste slowly " and the business will prosper.Decisions based on data make for better business management.
It seems rather insulting when speaking to a courageous business owner but the reality , as with many , he did not know what he did not know.
I explained that the main components of cash control were planning /forecasting ,spend control,margin analysis,working capital and debt management.
Seems rather obvious when one sets it out but only if one has experienced it , does it become obvious. This intrigues me because , having gone to countless courses and with a University education ,it is the day to day management of very practical things that actually is missed off the curriculum.
The reality is that many businesses fail because there is not a complete understanding throughout the business about what is actually happening on the ground in relation to financial impact.
We were able to help by looking at his own systems and allowing him to gaze through the looking glass to understand his business in a more definitive way.As an entrepreneur in a hurry, he was told "make haste slowly " and the business will prosper.Decisions based on data make for better business management.
Tuesday, 5 October 2010
Does the Public sector have customers ?
In light of the recent pronouncements by George Osborne , it is really obvious that the Lib Dems are having an effect,not only on the Policy declarations but in the tone and the vocabulary being used to express Tory cabinet reasons for policy recommendations.
The outburst by a Tory minister about the pay of Public sector pay for Chief executives , flies in the face of previous Tory policies of treating all public sector departments like businesses , privatisation and reward for success.
I used to have arguments with a railway enthusiast who used to say that the railways need re-nationalised and there is no such thing as customers ,"people are passengers" he used to say.The punctuality and safety of railways has increased immeasurably under the private sector , but regulation does need to be used to keep the companies mindful of public interest.
The voices yesterday at the Tory Party conference had the same dilemma.Can you run Government funded services as businesses when the public has their say through the ballot box. Clearly so far the answer is no.
People could be forgiven for believing that the party in Government today is a centre right coalition party , almost in the same space as the now defunct New Labour. The issue is that , the way in which public money was used under the last Labour government , was spent as if it was their money.Ideology driven!!
The private sector, learned a long time ago that if you do not listen to your market the business does not prosper but it needs to be able to fund initiatives.
Accepting that dispensing government funds has a political prioritisation , public sector and the public at large need to understand that money is in short supply and even Governments have a credit rating.That requires cost effective management.
If the last 18 years has proven anything it is that ideology costs money , and we were virtually bankrupt.It is too easy just to attack big salaries in the Public sector.Let us find a different model that at least means our children do not have a perpetual debt legacy form badly run Public sector.
We have to remember that although the banks started the run on our National finances, we were already in a bad starting position to deal with it
The outburst by a Tory minister about the pay of Public sector pay for Chief executives , flies in the face of previous Tory policies of treating all public sector departments like businesses , privatisation and reward for success.
I used to have arguments with a railway enthusiast who used to say that the railways need re-nationalised and there is no such thing as customers ,"people are passengers" he used to say.The punctuality and safety of railways has increased immeasurably under the private sector , but regulation does need to be used to keep the companies mindful of public interest.
The voices yesterday at the Tory Party conference had the same dilemma.Can you run Government funded services as businesses when the public has their say through the ballot box. Clearly so far the answer is no.
People could be forgiven for believing that the party in Government today is a centre right coalition party , almost in the same space as the now defunct New Labour. The issue is that , the way in which public money was used under the last Labour government , was spent as if it was their money.Ideology driven!!
The private sector, learned a long time ago that if you do not listen to your market the business does not prosper but it needs to be able to fund initiatives.
Accepting that dispensing government funds has a political prioritisation , public sector and the public at large need to understand that money is in short supply and even Governments have a credit rating.That requires cost effective management.
If the last 18 years has proven anything it is that ideology costs money , and we were virtually bankrupt.It is too easy just to attack big salaries in the Public sector.Let us find a different model that at least means our children do not have a perpetual debt legacy form badly run Public sector.
We have to remember that although the banks started the run on our National finances, we were already in a bad starting position to deal with it
Monday, 4 October 2010
Value of Leadership
I was reading in the McKinsey magazine about the attributes of good leadership and it made me reflect on the obligations I have had , over the years to run businesses and show leadership , often in trying circumstances.
If I had to summarise , I would say that the main objective was to get as many people as possible into the same space in which I was operating . Many academic studies have discussed the team bonding aspects , but I am speaking about the psychological impact of the fictitious plane crash.
The plane takes off and it is full of people from every walk of life , and assuming most people survive the accident on a desert island, the focus of a leader is to bond the various skills in a cohesive way.
In the workplace analogy, extreme events are rare thankfully , but it is important to recognise that business only survives or prospers by the collective efforts of the whole team.It is also true that not all participants see it as there role to join in , which causes the effort to be diminished to varying degrees.
Someone once said that if your business is doing well create a crisis. I am sure in the current business environment that is not required , but nevertheless everyone needs to be led with a common understanding and a common sense of purpose.The business boss has to create that environment
If I had to summarise , I would say that the main objective was to get as many people as possible into the same space in which I was operating . Many academic studies have discussed the team bonding aspects , but I am speaking about the psychological impact of the fictitious plane crash.
The plane takes off and it is full of people from every walk of life , and assuming most people survive the accident on a desert island, the focus of a leader is to bond the various skills in a cohesive way.
In the workplace analogy, extreme events are rare thankfully , but it is important to recognise that business only survives or prospers by the collective efforts of the whole team.It is also true that not all participants see it as there role to join in , which causes the effort to be diminished to varying degrees.
Someone once said that if your business is doing well create a crisis. I am sure in the current business environment that is not required , but nevertheless everyone needs to be led with a common understanding and a common sense of purpose.The business boss has to create that environment
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