STATE OF THE Business Owner Don’t You Want? Step 2. What Do You Want? Step 3. What Gets in Your Way? Step 4. Write Your Eulogy Step 5. The essence of my Primary Aim is to live a

PRESENTED BY

STATE OF THEBusiness OwnerTHE PULSE OF SMALL & MIDSIZE BUSINESSES

2012 PEOPLE GUIDE

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I STATE OF THE BUSINESS OWNER I 2012 PEOPLE2

State of the Business Owner 2012 - Fundamentals

Following a difficult two year global economic downturn, 2011 was a year of moderate growth for small and midsize companies.

EMyth and Synotac partnered to survey hundreds of business owners about how they fared in 2011. We analyzed the results, and published our findings in our full report available at www.stateoftheowner.com.

The Planner and the PessimistOur findings showed business owners starkly divided into two groups:

Planners ... believe they control their destiny and are busy navigating towards their vision for the future of their business

Pessimists ... believe the future is dictated by external events beyond their control that limit them from creating the life they want

Compared to Pessimists, Planners...•Runlargercompanies•Tookhomemorepersonalcompensationin2011•Grewfasterin2011•Expecttogrowfasterin2012

Planner and Pessimist Traits

The Planner• Believes they control their destiny

• Has a coherent vision of the future

• Regularly tracks business metrics

• Has concrete plans to move

towards their business vision

• Is innovative with technology

The Pessimist• Believes the future is dictated by

external events beyond their control

• Does not have a vision for their

company in the future

• Has few or no formal plans for

making progress towards any vision

• Does not regularly consult metrics

to track business progress

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STATE OF THE BUSINESS OWNER I 2012 PEOPLE I 3

Three Keys to Success

We examined over 30 variables to see how they affected revenue growth, then grouped the variables which were utilized by Planner-owned companies into 3 categoriesthatwecalltheKeystotheGrowthEngine:

The Business of People

When asked about their biggest challenge of 2012, business owners repeatedly talk-ed about the importance of building the right team. Planners found the most effec-tivewaytoretaintopemployeesconsistedoffivethemes:Recognition,ProfessionalGrowthOpportunities,ClearExpectations,TrustandAutonomy,andFairCompen-sation.Allofthesefactorsdescribethewaybusinesseswithacultureofownershipwork with their employees.

Fundamentals Accelerators People

The Statistics

InarecentGallupsurveyitwasreportedthat70% of workers are underperforming or actively undermining the work of their company.

Thevoluntary“quit”rateisontheriseagainasworkermobilityincreasesandtheeconomy comes out of recession. Employees trapped in unfulfilling jobs will begin to pursue their search for passion and meaning in their work.

Raiseswereminimalin2011,showingtheeffectoftheongoingglobalrecession.Asworkermobilityincreases,keepinggoodpeoplewillrequirebothfair compensation and opportunities for growth.

Businesses that had results-oriented role descriptions withALLoftheiremployeesoutgrew their peers by 50%.

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What Is an Ownership Culture?

Are your employees personally invested in the success of your organization?

If not, they are not thinking and acting like owners of their positions, but as renters.Anemployeeswhorelatestotheirpositionasarenterseestheirpo-sition as a job that is separate from their life. Owners see their positions as an expression of their life.

The Differences Between Owners and RentersOwners Renters

ActfromSelf-Interest ActfromSelf-Preservation

BehaveCaringly BehaveCompliantly

InhabitTheirChoice Inhabit Victimhood

With an ownership culture, a business can experience faster growth with greater innovation and an alive, dynamic workforce. Employees share the re-sponsibilities of the organization because its success is important to them.

The Benefits of an Ownership Culture

Building an Ownership Culture

Tobuildacultureofownership,abusinessownermustconfrontthewaysthey micromanage and have difficulty giving up control, responsibility, and/or authority to their employees. Owners must also learn to hire people based on values that align with the organization’s, not just on skill set and experience. Most importantly, these values must be based in one’s self-interest which ex-presses in the ways a person feels meaning and value in their life.

“Truly delegating a project/task is hard – because it’s emotional. You can say the right words, but your employees are holding out for the moment when they feel you let go, because only then can the project actually be theirs to own.”

-JonathanRaymond,EMythCEO

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Primary AimA brief statement that describes your highest values and expresses how you want to live your life.

Thefirststepincreatinganownershipculturerequiresthebusinessownerfirstdefining their values (what gives them meaning and purpose), then their busi-ness’svalues.Theremustbeaconnectionbetweenanowner’spersonalandprofessional values for the foundation of self-interest and ownership to take root. From self-interest and ownership, care naturally expresses and everything becomes a choice.

AtEMyth,thefirststepwetakeabusinessownerthroughisthePrimaryAimprocess.Thishelpsdefinewhatgiveseachownerpersonalfulfillmentandpas-sioninlife-thevaluesfortheirself-interest.ThePrimaryAimisadiscoverypro-cess uncovering what is already there, but not yet defined.

Primary Aim Worksheet

TheworksheetincludedwiththisguidegivesinstructionsonhowtodevelopyourPrimaryAimthroughthesefivesteps:

Step 1. What Don’t You Want?

Step 2. What Do You Want?

Step3.WhatGetsinYourWay?

Step 4. Write Your Eulogy

Step5.TheessenceofmyPrimaryAimistolivealifethatis…

Cultivating Self-Interest

AftercompletingtheirPrimaryAim,EMythcoachesguidebusinessownerstoshare the process with their employees as part of their employee development program. Owners can help employees discover their personal values and see how they align professionally.

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Factors that Drive Employee Engagement

Our Study found five key factors that drive employee engagement in Planner businesses.

1. Recognition2. Professional Growth and Development3. Clear Expectations4. Trust and Autonomy5. Fair Compensation

Practices for People Development

Vision: AclearlywrittenStrategicObjective(visiondocument)describing a picture of the company that has been shared with all.

Structure: Organizational chart, results statements, policies, position agreements, employee development meetings.

Training: Orientation, job-specific, and ongoing tied to professional development goals and performance plans.

Tools: Systems, best practices, brand promise.

Our study found that businesses that empow-ered employees to own their positions earned significantly greater rev-enue than those that did not.

Employee Empowerment: Trust and Autonomy

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Our study found that business-es that had results-oriented position agreements with ALL of their employees outgrew their peers by 50%.

Providing Clear Expectations

Position Agreements

APositionAgreementisapowerfultoolthatcommunicatestheresultsanemployee is hired to achieve and transfers ownership of the position over to them. Different from a job description, which usually is little more than a task list,aPositionAgreementsisawrittenagreementbetweenamanagerandanemployee that makes explicit the result that the employee is accountable for in that position and the standards necessary to produce that result. Expecta-tions are clearly stated as well as the reason for the position within the con-text of the company.

Position Agreements consist of five sections:

Position Identification: names the position

Results Statement: says why the position exists within the context of the company

Work Listing: identifying the strategic work & tactical work

Standards (position specific & company-wide): names how the work is done

Signatures Page

Position Agreements WorksheetThe worksheets included with this guide include instructions on how to craft a results- oriented Position Agreement with clear expectations and written accountabilities.

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Owning All Aspects of Your Company

AtEMythweworkwithbusinessownerstoseetheirbusinessesasadynamicwhole.Our Seven Dynamics map helps owners hold the holistic overview of their business, and at the same time, drill down to the smallest detail of each dynamic.

S TAT E Business Owner

2012OF THE

PRESENTED BY

About EMyth

EMyth is the pioneer in business coaching and training, delivering transformation through our coaching services for over 30 years.

EMyth helps business owners grow their companies through a variety of services, including:

Individual Coaching - a comprehensive coaching program that provides the tools, framework, and inspiration needed to transform a business.

Group Coaching - combines our proven tools, the guidance of an EMyth Coach, and support from business peers.

Corporate Coaching - a customized business development program for companies with a manage-ment team looking to grow.

Seminars & Special Events - give leaders the opportunity to immerse themselves in the EMyth Point of View at group training and online events.

Learn more at www.emyth.com

Take a free business assessment at www.emyth.com/eval or for a free business consultation call 1.800.221.0266

About Synotac

Synotac is a digital marketing agency that connects companies with their customers online.

Synotac helps small and midsize companies to accelerate growth through the following services:

Assessments - evaluate how e�ectively you are engaging customers with your website, mobile technologies, social media and email along with best practices to improve your results.

Web Redesigns - our strategic and proven process for turning your website into the hub of your marketing e�orts.

Digital Marketing Program - a unique quarterly progam that keeps you on top of current trends and identifies opportunities to accelerate marketing results.

Learn more at www.synotac.com/services

Use free digital marketing resources at www.synotac.com/resources

To discuss your digital marketing needs, call 1.800.620.0307

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A Business Development Publication of EMyth. Copyright © 2012 LE

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Primary Aim Putting your life first

Primary Aim Putting your life first

Definition

Your Primary Aim is about your life, not your business. Your business is simply one of many important aspects of your life.

Your Primary Aim is the essence of your purpose in life. It is a brief statement summarizing whatever it is in you that is the source of your vitality, your commitment,your passion. Your Primary Aim isn’t about material things. It’s about life.

Key Points

The Primary Aim is intensely per-sonal. It’s all about you. There is no such thing as a right or wrong, a good or bad Primary Aim. There is only what is true for you.

The keys to understanding your Primary Aim are to explore what you do not want your life to be like, to decide what you do want your life to be like, and to disco-ver the self-imposed limitations that get in the way.

Money, status, power, posses-sions, and winning are not the essence of a Primary Aim. It’s deeper than that.

The best indicator that you have discovered your true Primary Aim is your emotions. If you don’t feel energy, enthusiasm, commitment, and a sense of “Yes! That’s me!” you haven’t found your real Pri-mary Aim.

Primary Aim is not New Age pseudo-psychology. It’s a pragmatic and real world way to put your life in perspective. It anchors your leadership and your decision-making with a solid understanding of what is and is not important.

Why Do You Needto Understand YourPrimary Aim?

Understanding your Primary Aim gives you the ability to live yourlife intentionally—rather than ran-domly—by making conscious choices that are consistent withwhat is most important to you. It helps you set your life’s real prio-rities and puts your business inits proper perspective. It enables you to understand where thereal purpose of your life lies, and how better to serve that purpose.

LEADERSHIP

A Business Development Publication of EMyth. Copyright © 2012

The Primary AimDiscovery Process

List what you don’t want in your life

List what you do want in your life

Set priorities and bust barriers

Write your own eulogy

Write your Primary Aim

LEADERSHIP Primary Aim 1


Question yourself. Then question your answers.

The following list of questions can stimulate your think-ing and put you in the right frame of mind for work-ing on your Primary Aim. Take time to think about your answers. There are, of course, no right or wrong answers, just answers that are true for you. Some of the questions are easy, some are difficult; and some may cause you to consider your most basic values and attitudes. Be honest with yourself.

In this preliminary section, don’t force yourself to an-swer every question. Pick the ones that catch your eye and provoke strong emotions in you. Write down your responses. As you go through the Primary Aim Discovery Process, refer back to these initial thoughts to remind you of the things that make you feel truly passionate and inspired about life.

What do you want your life to look and feel like?

What matters most at this point in your life?

What do you value most? What’s important to you?

What would you like to be able to say about your life after it’s too late to do anything about it?

Questions to Stimulate Thinking

About Your Primary Aim



Many years from now, at your funeral, what do you hope will be said about you in your eulogy?

What would you like people’s perceptions of you to be?

What would you like people’s perceptions of you to be?

How do you want your life to feel on a day-to-day basis?

How do you want your life to feel on a day-to-day basis?

What are your daydreams about?



When you were young, what did you want to be when you grew up?

Of all the things you have done in your life, what has given you the most satisfaction or pleasure?

What is missing from your life? When you find yourself wishing for something, what is it?

Do you ever find yourself wishing you were different? What do you wish?

If you no longer had to work, how would you spend your time? And with whom?

Of all the things you have done in your life, what has given you the least satisfaction or pleasure?



What motivates you to perform above and beyond the call of duty?

What are your greatest weaknesses?

What are your greatest strengths?

What do you want to achieve, but you find it impossible to do?



1What Don’t You Want in Your Life?

1

Using the blank spaces below, list everything that causes you anger, stress, frustration, fear,

hatred, embarrassment, dissatisfaction — whatever it is that you do not want in your life.

2

Now go back over your list, thinking carefully about each item. Notice your feelings, your sense

of importance about each one. Mark no more than 5 or 6 items that are the most important not

to have in your life.



2What Do You Want in Your Life?

1

Use the blank spaces below to list everything that you do want in your life. Look at what your

deepest don’t-wants tell you about what you really do want. Focus on what makes you feel

happy, fulfilled, satisfied, and what energizes and motivates you. Avoid the superficial and the

material and go for the deeply satisfying, profoundly rewarding life experiences. Again, don’t think

too much about it, and write as many as you can.

2

Go back over your list, thinking carefully about each item. Again, notice your feelings, your

sense of importance about each one. Mark no more than 5 or 6 items that are the most important

to you. Look over those items and rank them from the most important to the least important.



3What Are Your Priorities, and What’s in Your Way?

Write down, in order of importance, the items you circled from the list of what you want in your life.

Think carefully about each of them, and write down what, if anything, is keeping you from attaining

them. Think especially hard about self-imposed limitations.

Important things

you want in life

Barriers

and limitations

Barrier-Breakers/

Solutions



4Write Your Own Eulogy

Years and years from now, after a happy and fulfilling life, you are given the

opportunity to write the eulogy for your memorial service. Assuming you live

the life you want from this point onward, what will your eulogy say?

Looking back on the life of



5Your Primary AimWrite your Primary Aim below. It should be a very short statement—a phrase, a sentence, no more than a couple of sentences.

Remember that your Primary Aim is about being, not do-ing. It describes how you show up in the world, not what you want to accomplish. Your Primary Aim already exists; this process simply helps you attach words to it. You

know that your Primary Aim statement is right when it describes the essence of who you are at your best. When you read it you should feel energized, enthusiastic, and committed. You should shout “Yes! This is me!” If not, you haven’t gotten it yet. Keep trying.

The essence of my Primary Aim is …

Or, I am …



Personal Objectives

Component

Annual Income

Professional Growth

Education

and Personal

Family and

Relationships

Hobbies, Pastimes

Travel, Leisure

Retirement

Major Purchases

In 6 Months By Next Year In 5 Years 10 Years +


MANAGEMENT Position Agreements 1

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Position Agreements Creating the road maps for your employees’ success

Position Agreements Creating the road maps for youremployees’ success

Overview

A Position Agreement is a written agreement between a manager and an employee. It expli-citly states the result the employee is accoun-table for, as well as the work and standards necessary to produce that result.

The job description, an unsatisfactory but common alternative, is often a glorified to-do list that is more of an organizational forma-lity than a document which serves a greater purpose.

Position agreements reflect the role each position holds within your organization. They are not tailored to an individual’s skills or inte-rests—that would lead to people dependency. The accountabilities go with the position, and the person accepts the position with all its inherent accountabilities.

To achieve the result of a position, the em-ployee may perform strategic and/or tactical work. The work of a position is itemized in the work listing section of the Position Agreement.

To ensure success, the Position Agreement describes the standards for how the work must be done. Standards consist of quantity, quality, and behavior and can be based on objective (measurable) or subjective (non-measurable) criteria.

The Position Agreement, a primary agreement in good faith between employee and manager, creates a solid foundation for working together to achieve extraordinary results in the business. It serves as a road map that guides employees to achieve their own success.

Elements of thePosition Agreement

Position Identification

Result Statement

Work Listing

Standards

Signature Page

MANAGEMENT


Position AgreementImplementation Process

Review your organization chartand result statements

Plan your approach fordeveloping position agreements

Develop your position agreements

Meet with employees and signposition agreements

Review and revise position agreements periodically



ENTREPRENEURIAL WORK

1. Develop and lead others in achieving the Strategic Objective.

2. Create and implement the Organizational Strategy.

3. Develop and lead others in a Management Strategy.

4. Develop and lead others in a People Strategy. Be an EMyth Mentor.

5. Create a Systems Strategy.

6. Develop the Marketing Strategy.

7. Using EMyth principles and systems, lead the company in business development in all seven

centers of management attention through all three phases of development.

8. Develop the Strategic Management Team using EMyth principles and systems for all seven

centers of management attention, in all three stages of development.

9. Engage in routine strategic planning sessions with employees to develop short- and long-term

strategies and tactics for the achievement of the Strategic Objective.

10. Increase the attractiveness and value of the company as perceived by customers, investors,

employees, and vendors.

MANAGERIAL WORK

1. Plan department’s tactics for achieving the Strategic Objective, including a profit center plan.

2. Use EMyth principles and systems to become an EMyth Mentor to employees.

3. Use EMyth principles and systems to achieve the Strategic Objective.

4. Quantify the overall performance and results of the department.

5. Innovate, quantify, and orchestrate processes and systems for doing and managing department’s work.

6. Maintain Operations Manual for department.

7. Utilize budget, budget variance, cash plan, and cash variance reports for control and planning.

8. Recruit, hire, and train personnel for department.

9. Execute Position Agreements and legal documents related to employees.

10. Deliver the Primary Aim process to each employee.

11. Engage in regular Employee Development Meetings with employees.

12. Evaluate the performance of employees.

13. Provide staff with information, advice, and support related to department’s function.

Strategic Work Listing



Managerial Position Agreement Sample

POSITION TITLE: Owner as President

MANAGER’S POSITION: Not Applicable

REPORTING POSITIONS: These positions report directly to me and are accountable

for Producing the indicated result(s):

Position: Vice President, Internal Operations

Result: To provide staff support for the acquisition and retention of clients through the

planning, evaluation, monitoring, and improving of financial, information technology,

and administrative systems, in a way that promotes an effective smooth-running

organization.

Position: Vice President, Client Fulfillment

Result: To retain long-term, quality clients for the company through the development

and implementation of service, production, and delivery systems that fulfill the

company’s marketing message and contractual obligations to clients, and the

company’s financial and strategic objectives.

Position: Manager, New Business Ventures

Result: To assist in achieving the company’s Strategic Objective by providing management

with information and recommendations related to new business opportunities.

Position: Vice President, Marketing

Result: To acquire long-term, quality clients for the company through the creation of the

company’s positioning, sensory packages, and marketing strategies, and the

development and implementation of lead generation and lead conversion systems.

Position: Vice President, Field Operations

Result: To acquire and retain clients via the branch network through the implementation

of orchestrated marketing, client fulfillment, and internal systems, and through the

development and implementation of branch systems, so that clients’ needs and

expectations, and the company’s financial objectives, are met or exceeded.

RESULT STATEMENT: I am accountable for producing the following result:

To achieve my Strategic Objective, and, in so doing, live my Primary Aim.



WORK LISTING: List all strategic and tactical work for which this position is accountable.

Strategic Work: 1. Develop and lead others in achieving the Strategic Objective.

2. Create and implement the Organizational Strategy.

3. Develop and lead others in a Management Strategy.

4. Develop and lead others in a People Strategy. Be an EMyth Mentor.

5. Create a Systems Strategy.

6. Develop the Marketing Strategy.

7. Using EMyth principles and systems, lead the company in business development in

all seven centers of management attention, through all three phases of development.

8. Develop the Strategic Management Team using EMyth principles and systems for all

seven centers of management attention, in all three stages of development.

9. Engage in routine strategic planning sessions with employees to develop short- and

long-term strategies and tactics for the achievement of the Strategic Objective.

10. Increase the attractiveness and value of the company as perceived by customers,

employees, and vendors.

Tactical Work: Not Applicable

STANDARDS: List quantity, quality, and behavior standards for which this position Is accountable.

Position-Specific: 1. All decisions will be made in alignment with the Strategic Objective of the company.

2. Owner will become free of the business within 5 years.

3. Strategic management team will be in place and sufficiently developed to handle

daily operations within 3 years.

Company wide: 1. All work will be performed in accordance with all government laws, regulations,

ordinances, and court rulings in those jurisdictions in which the company operates.

2. All routine work will be documented in an operations manual. The information

included in the operations manual is proprietary.

3. All work will be performed according to company policies and standards inherent in

all Position Agreements, system action plans, employee manuals, ongoing policy

memoranda, and facilities and dress codes.

4. Client and company information will be held strictly confidential outside the company.

5. All telephone calls, both internal and external, will be returned within one business

day and within two hours whenever possible.

6. Manager will be notified in an exception report of any issues to be resolved or dead-

lines that cannot be met by reporting position, prior to the due date.

7. All innovation will be quantified, tested, and improved, then documented for routine

implementation (i.e. well orchestrated once proven).

Managerial Position Agreement Sample

POSITION TITLE: Owner as President



Managerial Position Agreement Sample (contd.)

SIGNATURES

Statement of the position holder:

I accept the accountabilities of this position and agree to produce the results,

perform the work, and meet the standards set forth in this Position Agreement.

Date: April 3, 2013 Signature: Printed/typed name: William Goodwin

Statement of the position holder’s manager:

I agree to provide a working environment, necessary resources, and appropriate training

to enable the accountabilities of this position (result, work, standards) to be accomplished.

Date: Not Applicable Signature: Not Applicable Printed/typed name: Not Applicable

W.Goodwin

8. Problems with any system must be brought to the attention of manager in an

exception report, so the system can be improved within the structure of the

operations manual.

9. All policy memoranda indicating changes in policy and/or procedure will be stored in

each employee’s operations manual, until an updated procedure is provided.

10. Employees will provide staff assistance as requested; each employee may be asked

from time to time to cover other areas of accountability and/or departments.

11. All business communications, whether verbal, visual, or written, whether for internal

or external use, will be professional in tone and content and in accordance with

applicable and existing company policies and standards.

12. Employees will respect each other’s time, space, and need for concentration.

Socializing and interruptions must not impede workflow.

13. Employees will have weekly, regularly-scheduled meetings with their manager.

14. Employees are encouraged to recommend ideas for the improvement of their

department and position that are consistent with the company’s Strategic Objective.



Managerial Position Agreement Sample Template

POSITION TITLE:

MANAGER’S POSITION:

REPORTING POSITIONS: These positions report directly to me and are accountable

for Producing the indicated result(s):

Position:

Result:

Position:

Result:

Position:

Result:

Position:

Result:

Position:

Result:

RESULT STATEMENT: This position is accountable for producing the following result:



WORK LISTING: List all strategic and tactical work for which this position is accountable.

Strategic Work: 1.

2.

3.

4.

5.

6.

7.

8.

Tactical Work: 1.

2.

3.

4.

5.

6.

7.

8.


Do not include those that belong on a system action plan.

Position-Specific: 1.

2.

3.

4.

5.

6.

7.

8.

Company wide: 1. All work will be performed in accordance with all government laws, regulations,







4. Client and company information will be held as strictly confidential outside the

company.

Managerial Position Agreement Sample Template

POSITION TITLE:



Managerial Position Agreement Sample (contd.)

SIGNATURES




Date: Signature: Printed/typed name:












exception report so the system can be improved, within the structure of the opera-

tions manual.















Non-Managerial Position Agreement Sample Template

POSITION TITLE:

MANAGER’S POSITION:

TACTICAL WORK LISTING: List all tactical work for which this position is Accountable.

1.

2.

3.

4.

5.

6.

7.

8.

9.

10.

RESULT STATEMENT: This position is accountable for producing the following result:




POSITION TITLE:


Do not include those that belong on a system action plan.

Position-Specific: 1.

2.

3.

4.

5.

6.

7.

Companywide: 1. All work will be performed in accordance with all government laws, regulations,







4. Client and company information will be held as strictly confidential outside the

company.








exception report so the system can be improved, within the structure of the opera-

tions manual.
















SIGNATURES











Position Agreement Development PlanIf applicable, list positions in priority order: urgent, near-term, low. Make additional copies as needed.

Position Title Position Accountable Target Due Date

Documents

STATE OF THE Business Owner Don’t You Want? Step 2. What Do You Want? Step 3. What Gets in Your Way? Step 4. Write Your Eulogy Step 5. The essence of my Primary Aim is to live a