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So Youre Stuck:Dealing With Challenges in BusinessNovember 22, 2013Barnett Gershen

BSCAI is the Business Resource for Contractors 2013 BSCAI Annual Convention

BSCAI is the Business Resource for Contractors 2013 BSCAI Annual Convention#

Family CircusBSCAI is the Business Resource for Contractors 2013 BSCAI Annual Convention#Start Time: 9:45 AM, Stop Time 11:00 AMTo keep us on track, and because I only have about 75 minutes to speak, please hold your questions until the Q&A at the end. I will set aside 15-20 minutes for the Q&A part of my presentation. You may write your questions down with one of our pens we provided.Please set phones to silent mode.A copy of this presentation may be downloaded from my website at www.gershenconsulting.com/bscai2013.pptx or from the BSCAI website.Time-saving idea Go ahead and rate me a 5 before we begin!HousekeepingBSCAI is the Business Resource for Contractors 2013 BSCAI Annual Convention#If you havent already, pick up a Gershen Consulting business card at the entranceTo be in the running for an iPad Mini ($300 retail value), leave your business card next to the sign up sheet at the front. The winner will be randomly selected.Easel 5 minute exerciseIll ask 3 people in the audience If this presentation was a great success, what questions would I have answered? At the end of the presentation, Ill return to these answers and see how successful I really wasHousekeeping (2)BSCAI is the Business Resource for Contractors 2013 BSCAI Annual Convention#Grew Associated Building Services (ABS) starting with two employees to become the 9th largest privately held maintenance contractor services company in the US with 13,000 employees and sales of $230 million.Hands-on experience from leading Associated Building Services (ABS) from its inception to its successful sale in 2004.In 2005 he founded Gershen Consulting, where his proven abilities as an executive are used in reproducing companies, driving up the top line as well as increasing the bottom line.Specializes in helping executives shorten their journey to the next level of successIntroduction Barnett GershenBSCAI is the Business Resource for Contractors 2013 BSCAI Annual Convention#1976 - $2MM1986 - $21MM2000 - $90MM2003 - $240MM2004 - Sale of ABS1996 - $40MM1947 Inception - XGIEstablished risk management programEstablished CT management and stock option programImplemented customer satisfaction procedures (quarterly)Implemented relational counseling for team buildingImplemented Birkman testingProfessionalized hiring processImplemented customer and employee appreciationImplemented strategic planningImplemented incentive bonus planClosed first of several major acquisitions2005 - Founded GC$ RevenueYearsABS Growth: Revenue and ChangesBSCAI is the Business Resource for Contractors 2013 BSCAI Annual Convention#If you do what youve always done, you get what you always got Alvin Ruben, Personal Weight TrainerAbout ChangeBSCAI is the Business Resource for Contractors 2013 BSCAI Annual Convention#Hits Close to HomeIm a season ticket holder for the Houston Texans NFL teamThe Texans made the playoffs in the past two seasons.but that isnt likely to happen this year.Weve lost 8 in a row, some in spectacular fashion.But We have the same coaches, players, stadium, and supportive fans that we had in years past. Nothing seems to have changed! So why arent we winning?BSCAI is the Business Resource for Contractors 2013 BSCAI Annual Convention#We arent winning BECAUSE nothing has changed. The AnswerJust because you do something and it works DOESNT mean it will continue to workIn football, as in life, change is REQUIRED if you want to enjoy continued successBSCAI is the Business Resource for Contractors 2013 BSCAI Annual Convention#Case Study 49ersJim Harbaugh (the 49ers head coach) understands the need for change

He benched quarterback Alex Smith and brought in a backup Colin Kaepernick. And the 49ers went to the Super BowlBSCAI is the Business Resource for Contractors 2013 BSCAI Annual Convention#CourtshipAffairInfancyInfant MortalityFounder or Family TrapAdolescenceDivorcePremature Aging or Unfulfilled EntrepreneurPrimeStableAristocracyEarly BureaucracyBureaucracyDeathGo-GoAll businesses experience life cyclesFor a complete treatise on the Life Cycles concept, go to www.adizes.comBusiness Life CyclesBSCAI is the Business Resource for Contractors 2013 BSCAI Annual Convention#All organizations, like all people, have certain lifecycles.

All living organizations have issues that are common to each other.

Knowing where your organization is at on the corporate lifecycle can be critical to its success.

With the aid of this concept, you can determine where your business is in its life cycle.Some Fundamental Truths About Your JourneyBSCAI is the Business Resource for Contractors 2013 BSCAI Annual Convention#As your business grows, your greatest strengths can become your greatest weaknesses.

If you know whats ahead of you, you can reach your goal of achieving the next level faster, easier, and more efficiently (and have more fun doing it).

Your role as a leader is to accelerate your companys ability to resolve problems.

Some Fundamental Truths About Your JourneyBSCAI is the Business Resource for Contractors 2013 BSCAI Annual Convention#Keep in mind These stages arent Mutually Exclusive, and a business is never in just one stage

Also, a business is always moving along the life cycles continuum, it is rarely static

It is your job to determine where your business is along the cycle, and what direction it is going (an expert is often needed for this determination).Some Fundamental Truths About Your JourneyBSCAI is the Business Resource for Contractors 2013 BSCAI Annual Convention#CourtshipInfancyInfant MortalityFounder or Family TrapAdolescenceDivorce/Premature AgingUnfulfilled EntrepreneurPrimeStableGo-Go1976 - $2MM1986 - $21MM2000 - $90MM2003 - $240MMSale1996 - $40MMABS ExperienceCommon Business CycleAffairAn Interesting ComparisonBSCAI is the Business Resource for Contractors 2013 BSCAI Annual Convention#Example: Go-Go Stage (1 of 2)*Some Characteristics of the Go-Go Stage (1 of 2)

Company with a successful product or service, rapidly growing sales, and a strong cash flow

Key customers are raving about the products and ordering more

Prone to rapid diversification and spreading themselves too thin; so many irons in the fire that they cannot give the necessary attention to each one

Sales driven, and has an insatiable appetite for growth

Every opportunity uncovered in the marketplace looks promising; agreements are often signed before the company really knows if it can do the work

Everything is a priority; strategically important projects often get pushed aside for the latest hot project

Leaders often dont listen to criticism or warnings; this is left over from what initially made them successful in the Infancy stage

*Please refer to the Business Life Cycles handoutBSCAI is the Business Resource for Contractors 2013 BSCAI Annual Convention#Example: Go-Go Stage (2 of 2)*Some Characteristics of the Go-Go Stage (2 of 2)

Management is often ineffective and frustrated; Go-Go leaders often have little time to manage due to their personal involvement in the company

Information and accounting systems are weak; useful cost accounting and accurate reporting is often a distant dream; management reports are often published so late that they are of little use for day-to-day operations

Company is organized around people and projects

Employees are frustrated due to overwhelming workload, unclear responsibilities, and fuzzy goals

As the company continues to succeed, procedures and systems expand in response to emerging opportunities or unexpected problems, rather than a long-term plan

Continued success may eventually cause a major crisis that could threaten the loyalty of major clients, or jeopardize the entire business *Please refer to the Business Life Cycles handoutBSCAI is the Business Resource for Contractors 2013 BSCAI Annual Convention#Go-Go: Pathologies*Pathologies of Go-Go: The Founder's or Family Trap

The Family Trap occurs in businesses that are owned by a family where control remains in the hands of family members, and the family is unwilling/unable to place trust in non-family members.

In the Family Trap, leadership is determined on the basis of ownership and bloodlines, rather than competence and experience. In these situations, the company has again failed to separate ownership from management. Companies caught in a Family Trap are particularly vulnerable when control is transferred to an incompetent family member. *Please refer to the Business Life Cycles handoutBSCAI is the Business Resource for Contractors 2013 BSCAI Annual Convention#Go-Go: Solutions*Prescription for Go-Go Success:

Reining in activities and getting the enterprise to focus; Identifying the organization's priorities is not as important as identifying what is NOT a priority.

Continuous restructuring

Developing the skills, systems, trust, and respect needed to support delegation and eventually decentralization

Transition from management-by-intuition and management-by-the-seat-of-its-pants to a more professional approach; Usually occurs only after the company finally experiences a truly major crisis (without killing the company).

Delegating to a team of people, rather than to a single individual. The development of effective teamwork among the senior management group becomes critical in Adolescence, so it is a good time to begin forging a strong team during Go-Go. When delegation is successful, the Founder and the management team can tackle decentralization, which is a much more challenging transition that involves transferring the responsibility for strategic decision-making from the Founder to other key managers.

This is a key point We will follow up with more info *Please refer to the Business Life Cycles handoutBSCAI is the Business Resource for Contractors 2013 BSCAI Annual Convention#Business Life Cycle StagesLike the Eagles once said,you're the new kid in town Until you're not. I think every manager has a period of about 2-3 years in the company, then they either need to get a different team in the same company, change companies, or do what is hardest -reinvent themselves and the personal value proposition they bring to the company and their teams. I call it shelf life.

Kris Dunn, HR Capitalist, December 21st, 2012BSCAI is the Business Resource for Contractors 2013 BSCAI Annual Convention#Managing Teams- William Allen, a director of strategy and operations for Adobe, has proposed some unique perceptions on the team building aspect of the Go-Go stageBSCAI is the Business Resource for Contractors 2013 BSCAI Annual Convention#Not a Good Reason

- William Allen, Director of Strategy and Operations, AdobeBSCAI is the Business Resource for Contractors 2013 BSCAI Annual Convention#Managing TeamsMr. Allen sees change as essential for teambuilding in a growing business. He recommends:* Talk, talk, talk moreEffective communication can virtually eliminate the Im waiting for someone else to finish problem, among other issues

Leverage technology, but dont force itUse what your teams gravitate towards and need, rather than forcing the implementation of a perfect solution

Favor in-person conversations, not emailA few minutes of face-to-face communication can eliminate days of email threads, plus not as much is lost in translation

Hold all-hands meetingsActively build these short meetings into your calendar

When it stops working, stop doing itThe single worst reason to continue doing something is because you did it before * For more information, refer to the How Your Team Can Stay Nimble While Growing articleBSCAI is the Business Resource for Contractors 2013 BSCAI Annual Convention#Life Cycle of a DemocracyBondageSpiritual FaithAbundanceLibertyComplacencyApathyDependenceBondageGreat CourageThe average age of the worlds greatest civilizationshas been about 200 years. During those years.they progressed through this sequence - Alexander Tyler, 1887BSCAI is the Business Resource for Contractors 2013 BSCAI Annual Convention#BondageSpiritual FaithAbundanceLibertyComplacencyApathyDependenceBondageGreat CourageSomething to Think AboutWhere is the US on this life cycle?One of the penalties for refusing to participate in politics is that you end up being governed by your inferiors.PlatoBSCAI is the Business Resource for Contractors 2013 BSCAI Annual Convention#The Good NewsThese cycles are common to everybody and every living thing

They are predictable

They are all solvable

BSCAI is the Business Resource for Contractors 2013 BSCAI Annual Convention#The Bad NewsThere are NO REAL SHORTCUTS

If you dont solve these issues, they will come back and continue to teach you this lesson over and over again

It takes a lot of work to keep from getting stuck, and even more work to get unstuck

So why dont leaders do the right thing?

BSCAI is the Business Resource for Contractors 2013 BSCAI Annual Convention#Why Dont Leaders do the Right Thing?The 1992 movie Scent of a Woman gives us an idea

At the end of the movie, Al Pacino (Col. Frank Slade) comes to the defense of Charlie, a young boarding school attendee (Chris ODonnell).Charlie witnessed a prank on the schools headmaster, and now he is threatening to expel Charlie (an action that could prevent him from being accepted to Harvard) unless he reveals who is responsible for the prank.

Col. Slade defends Charlie, and in the process, imparts some wisdom about tough choices and hard work

BSCAI is the Business Resource for Contractors 2013 BSCAI Annual Convention#

Too Damn Hard* The entire speech can be downloaded from www.gershenconsulting.com/scentofawoman.wmvBSCAI is the Business Resource for Contractors 2013 BSCAI Annual Convention#Texas A&M Managing Elite Talent

BSCAI is the Business Resource for Contractors 2013 BSCAI Annual Convention#Texas A&M Managing Elite TalentA recent Forbes article about Texas A&M head coach Kevin Sumlin identifies several of the concepts we have been referring to:

Success can be a leaders worst enemy

Nothing halts progress like taking for granted that ones past victories will continue into the future

Every battle, every game, is different, and one cannot assume that what worked before will work today

You can have the most talented players in the world, but if youre inconsistent in your leadership and strategy, it will prove fatal for you every timeFor much more information, you can read the entire article at http://www.forbes.com/sites/jasonbelzer/2013/10/08/texas-am-football-and-the-secret-to-managing-elite-talent/BSCAI is the Business Resource for Contractors 2013 BSCAI Annual Convention#What Determines How Fast/Well?CEOManagement TeamCultureBSCAI is the Business Resource for Contractors 2013 BSCAI Annual Convention#The CEOCEONotes about the CEO

Everything starts hereHas enough ego strength to be able to ask for helpMany roles Chief optimism officer, chief pessimism officerThe day youre no longer solving problems is the day youre no longer leadingColin PowellStrong enough to know what he knows, wise enough to know what he doesnt knowThis may be the most important trait

BSCAI is the Business Resource for Contractors 2013 BSCAI Annual Convention#The CEO Knowing What you Dont KnowIn 1872, The Battle of Little Bighorn, commonly known as Custers Last Stand was a crushing defeat for US Army forces. But could the outcome have been different?As he was preparing for the march to the battle, Custer was interrupted by a salesman who insisted his product would be very helpful to the US forces. However, Custer was busy preparing for battle, and brushed the salesman aside. He was too busy for a sales pitch. Why was the salesman so insistent? What was he selling?BSCAI is the Business Resource for Contractors 2013 BSCAI Annual Convention#The CEO Knowing What you Dont KnowA relatively new technology.called a Gatling Gun

Custer was too busy to listen, and he didnt take the time to consider what he didnt know.BSCAI is the Business Resource for Contractors 2013 BSCAI Annual Convention#The Management TeamManagement TeamNotes about the Management Team

Focused on shared results Mission / Vision / GoalsImpeccable with wordConstantly reaching for next levelAlways focused on doing their bestA bias for actionSelf-policingSuccession plansCEOBSCAI is the Business Resource for Contractors 2013 BSCAI Annual Convention#The CultureCultureManagement TeamCEONotes about the Culture

Small, continuous improvementPay for results, not activitiesDisciplineConsistencyManagement by valuesOpen communicationTransparencyWe have met the enemy, and he is usTo thine own self, be truePolonius, Hamlet

BSCAI is the Business Resource for Contractors 2013 BSCAI Annual Convention#So Now What?Plan your work, and work your plan!Your business is stuck, and you want to get it unstuck.

You are developing a plan.

Now, how do we execute the plan? Develop a shared vision, and from that vision, Develop Best PracticesBSCAI is the Business Resource for Contractors 2013 BSCAI Annual Convention#HAVE A MISSION The reason you open the doors

Example: To profitably provide the best building maintenance services in (your city, your state, USA, earth, galaxy)

HAVE A VISION Where you are, where you want to go

Example: We are currently at $10MM in 2014?, we want to get to 20MM by 2018?

HAVE KEY OBJECTIVES S.M.A.R.T.S.

Example: Increasing sales, increasing customer retention, increasing profitability, building the best team, strategic issuessee next slide

Shared Vision (Mission/Vision/Goals)BSCAI is the Business Resource for Contractors 2013 BSCAI Annual Convention#Tactical Plan Example - ABS

BSCAI is the Business Resource for Contractors 2013 BSCAI Annual Convention#Example Tactical Plan (Pg. 1)

BSCAI is the Business Resource for Contractors 2013 BSCAI Annual Convention#Example Tactical Plan (Pg. 2)

BSCAI is the Business Resource for Contractors 2013 BSCAI Annual Convention#Example Tactical Plan (Pg. 3)

BSCAI is the Business Resource for Contractors 2013 BSCAI Annual Convention#A procedure for developing a corporate Tactical Plan and Best Practices should occur in 3 stages:RepositoryTactical PlanBest Practices This is a list of all tactics/tasks discussedAll good ideas, as well as items that cannot be addressed during the particular quarter will be placed hereRefer to this list in each of the quarterly meetings to see what is in our arsenal of new tasks that could be implemented to support our objectives Drawing from the repository, tasks/tactics that will be implemented in the upcoming quarter are placed on the tactical plan.The Tactical Plan should be thoroughly reviewed in the quarterly meeting, but ideally, this would be reviewed monthly at each financial meeting.

Drawing from the Tactical Plan, tasks that have been successfully implemented (having been measured, managed, assessed, and corrected) will be placed in the Best Practices listOnly completed tasks go hereThese will become part of the job descriptions for each person so that they will be completed as a part of the culture of the organization.Tactical Plan/Best PracticesBSCAI is the Business Resource for Contractors 2013 BSCAI Annual Convention#Repository (tactics in Waiting) This is a list of all tactics/tasks discussedAll good ideas, as well as items that cannot be addressed during the particular quarter will be placed hereRefer to this list in each of the quarterly meetings to see what is in our arsenal of new tasks that could be implemented to support our objectivesThe repository is a list of all future tactics and tasks that are recommended, but cannot be done this quarterThink of this as a Tasks in Waiting list, everything that we dont want to forget goes hereWhen we come up with additional tasks, we put them on this list so we dont deviate from the 4 or 5 that are currently being worked on (see next slide)This list will be referred to in each quarterly meeting to see what new tactics/tasks we have available to support our objectivesStep 1 - RepositoryBSCAI is the Business Resource for Contractors 2013 BSCAI Annual Convention#Tactical Plan Drawing from the repository, tasks/tactics that will be implemented in the upcoming quarter are placed on the tactical plan.The Tactical Plan should be thoroughly reviewed in the quarterly meeting, but ideally, this would be reviewed monthly at each financial meeting.The Tactical Plan is a list of tasks that are currently being implemented, each one supporting one of the key 5 objectives (Increasing sales, Increasing customer retention, increasing profitability, building the team, and strategic)This plan will address 4-5 tasks PER each key objective (Example: 4-5 tasks that address Increasing sales, 4-5 tasks that address Increasing profitability, etc.)This is a somewhat short term plan, in that these tasks will be implemented over a specific quarter, and then reviewed at the end of the quarter to determine success/failureProcess for developing this list includes defining the objective, agreeing on tactics (through mutual negotiation) that support the objective, and then putting them on the tactical plan (drawing from the ideas in the repository)If tasks are not successful, move back to repository, if they are, move to bestStep 2 Tactical PlanBSCAI is the Business Resource for Contractors 2013 BSCAI Annual Convention#Best Practices Drawing from the Tactical Plan, tasks that have been successfully implemented (having been measured, managed, assessed, and corrected) will be placed in the Best Practices listOnly completed tasks go hereThese will become part of the job descriptions for each person so that they will be completed as a part of the culture of the organization.This list contains tasks that have been completed, and are currently being used successfullyAt this point, these are known as Best Practices, and should be removed from the Tactical Plan and included on this listThese Best Practices should be included in the job descriptions and performance evaluations of each person so that they will be completed as part of the culture of the organization

Step 3 Best PracticesBSCAI is the Business Resource for Contractors 2013 BSCAI Annual Convention#Tactical Plan ReviewJust making the Tactical Plan isnt enough Its your job to lead the charge for regular review of the document

The leader reviews the plan first, and then holds a quarterly strategic planning meeting (all hands) to review effectiveness and see what needs to be started, stopped, and continued.

Make sure the results of these strategic planning meetings are used in each employees performance evaluation. By doing this, you will be paying for results, not just activities.BSCAI is the Business Resource for Contractors 2013 BSCAI Annual Convention#If not this, what?

If not you, who?

If not now, when? (Time is Money)Three Questions for the Leader to Ask:BSCAI is the Business Resource for Contractors 2013 BSCAI Annual Convention#How Do you Decide?What if youve got 50 or 60 tactics, and you want to narrow the field to the top 5-6 for each category?

The 80/20 rule can help..BSCAI is the Business Resource for Contractors 2013 BSCAI Annual Convention#80/20 Rule

BSCAI is the Business Resource for Contractors 2013 BSCAI Annual Convention#Now What? (revisited)Youve got a plan but how do you make sure it is implemented? How do you Work your plan?

I recommend you create a Policing Mechanism

I prefer a quarterly all hands meeting (attendance is mandatory) where the plan (and only the plan) is discussed. Specifically How well is the plan working overall?What do we need to start doing, stop doing, and keep doing?If something isnt working, who will change it (and how/when/etc)The leader may need help during this stage, possibly fromBoard of directorsOutside consultant (hint, hint)BSCAI is the Business Resource for Contractors 2013 BSCAI Annual Convention#Lots of Moving PartsIf it is to be, it is up to me. - Martin Luther King, Jr.Whose job is it to do all this?BSCAI is the Business Resource for Contractors 2013 BSCAI Annual Convention#Pogo - Walt Kelly

BSCAI is the Business Resource for Contractors 2013 BSCAI Annual Convention#Questions/Comments/EaselBSCAI is the Business Resource for Contractors 2013 BSCAI Annual Convention#Recommended Reading (1)People Economics Regression to the Mean Kris DunnLink http://www.hrcapitalist.com/2012/12/people-economics-regression-to-the-mean.html

Adizes MethodologyIchak AdizesLink http://www.adizes.com/

Adizes Infancy StageIchak Adizeshttp://www.adizes.com/corporate_lifecycle_infancy.html

Adizes Go Go StageIchak Adizeshttp://www.adizes.com/corporate_lifecycle_gogo.htmlBSCAI is the Business Resource for Contractors 2013 BSCAI Annual Convention#Recommended Reading (2)Necessary EndingsDr. Henry CloudLink http://www.amazon.com/Necessary-Endings-Employees-Businesses-Relationships/dp/0061777129

Boundaries for LeadersDr. Henry CloudLink http://www.amazon.com/Boundaries-Leaders-Results-Relationships-Ridiculously/dp/0062206338

Texas A&M Football and the Secret to Managing Elite TalentJason Belzer, Forbes MagazineLink http://www.forbes.com/sites/jasonbelzer/2013/10/08/texas-am-football-and-the-secret-to-managing-elite-talent/How Your Team Can Stay Nimble While GrowingWilliam AllenLink https://www.openforum.com/articles/how-your-team-can-stay-nimble-while-growing/

BSCAI is the Business Resource for Contractors 2013 BSCAI Annual Convention#Tip of the Iceberg

Weve covered a lot, but this is truly the tip of the iceberg

For more information, you may contact Mr. Gershens office:

(713) 839-1990

bgershen@gershenconsulting.com

www.gershenconsulting.comBSCAI is the Business Resource for Contractors 2013 BSCAI Annual Convention#Business Life CyclesCourtshipAffairInfancyInfant MortalityFounder or Family TrapAdolescenceDivorcePremature Aging or Unfulfilled EntrepreneurPrimeStableAristocracyEarly BureaucracyBureaucracyDeathGo-GoStudies show that genius level achievement comes not from innate talent, but from years of hard work and deliberate practiceBSCAI is the Business Resource for Contractors 2013 BSCAI Annual Convention#