Success Strategies for Business Owners Growing Your Company... Delegate or Perish!

Success Strategies for Business Owners

Growing Your Company . . .Delegate or Perish!


About SCORE

Douglas S. Cavanaugh

• Successful and experienced business owners and executives acting as volunteers

• Free ongoing mentoring:One-on-oneE-mailSignup on our website – Mentoring

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• Seminars, workshops and Meetup Group

• Resources for small business: manasota.score.org

http://www.score.org/


Introductions . . . Your Expectations?

• Introduce yourself• What business are you in?• What are your expectations for the meeting today?• Record . . .

End of the meeting feedback:

Expectation

Outcome Gaps


Sales

Customer Service

Purchasing / Manufacturing Distribution

Finance

Business Owners / Management - responsible for Business Performance

Marketing

Service Delivery

Customers – Impacted by All Functions in Your Business

Key Business Processes

What should you delegate?How can you measure performance?


Delegate to Grow Your Business

Benefits of Delegation:

• Creates culture of accountability for employees • Employees gain skills/confidence• Employee satisfaction increases • Business builds employee strength to handle key tasks• Reduce employee turnover / related costs • Free owner’s time to work ON the business


Strategic and Operational Tasks

• How is your time currently allocated?

• Do you spend all your time working on Operational Tasks IN the business?

• Do you spend any time working ON the business doing Strategic Activities?

• Should you delegate and / or organize YOUR time better?


Strategic vs. Operational Tasks

Cruise Line Management vs. Ship Captain Analogy

Strategic Operational

AdvertisingBookingsCompetitionCrew HiringCustomsDestinationsEntertainment BookingMenu PlanningPort of CallsSafetyShip RegistrationsTraining

AccommodationsBaggage HandlingCrew EvaluationsDining Room ServiceEvacuation Meal PreparationNavigationRoom ServicePassenger SafetyPassenger Satisfaction RefuelingWeather Changes

Large Business mostly separated

Small Businessoverlap / shared

Not performed on ship Performed on ship


Strategic (ON the business) Examples

1. Conceptualize: (Vision) Product & Service, Customers, Costs, etc.

2. Organize: (Structure) Who will do what and when?

3. Implement: (Process) Space, Hiring, Professional Support

4. Motivate: (Commitments) Clear statements of what needs to be done

5. Analyze: (Information) Market Opportunities

6. Adapt: (Changes For Survival) Anticipate continual change


Operational (IN the business) Examples

Customer Relationships Products, Services and Support

Time Management Running Business and Resolving Problems

Price and Cost Controls Competition & Supplier / Vendors

Employee Relations Satisfaction & Turnover

Record Keeping Input / Reporting for Operational Measurements


List 5 Strategic things to want to do more and how you will accomplish the change

Prioritize 1(now) – 5 (within 6 months)

List 5 Operational things to want to do less. . .

Prioritize 1(now) – 5 (within 6 months)

10 minutes – then open discussion

Better Balance- Exercise 1


Better Balance – Exercise 1

Work for 10 minutes


Effective Delegation and Time Management

Time Management TipsFind what works for you• Choose organization/scheduling system• Use tech tools• Group tasks• Focus on most profitable tasks• Eliminate unnecessary meetings and

processes• Get rest and relaxation• Delegate

John Christakos, Maurice Blanks & Charlie Lazor


Employee Training and Development

Skills Inventory• What skills do your employees have?

• What skills do they need for their current jobs?

• What skills do they need in order to grow with your company?

• What are they interested in learning?

• Exercise 1 – Improve your employee’s skills

Theresa Alfaro Daytner



Cross-Training Your Staff

Benefits:• No outside assistance needed• Do more with less• Enhance employee skills• Uninterrupted workflow• Employees share knowledge

Methods:• Rotation• Job shadowing• Group training sessions



Outside Employee Enrichment ProgramsWhere to get mentoring, training and education?

•Online •Industry/professional associations•Colleges and universities•Adult education/continuing education•Training companies/consultants•Business coaches•State Economic Development Department •Chamber of Commerce •American Express OPEN Forum


Attaining Peak Performance

Creating a Culture of Accountability

Set clear goals and performance standards

Measurable and objective targets

Allow sufficient time to complete tasks

Responsible for results, not just tasks

Quarterly performance review – annual appraisal

Use best practice methods


Attaining Peak Performance

John Blancher

Employee Performance Measurement

• No surprises – address issues when they occur

• Regular appraisals (quarterly work best, but at least annually)

• Objective performance standards• Processes and results• Involve managers• Employee feedback• 360-degree feedback


Key Performance Indicators (KPIs)

• KPIs should be used to show the performance of activities that generate value

• Chose which KPIs you want to measure and follow carefully• KPIs can be very useful, but too many can be distracting• Implement simple tracking methods using spreadsheets• Setup trend graphs or tables so you can track progress and

see changes in performance• Later, you may find software packages which provide KPIs

and built-in dashboards to display the data


KPI Cautions

• KPIs are great for measuring key activities and performance

• Need to understand the source of the data and what the KPI is really telling you

• KPIs are a valuable resource, but they don’t replace the need to understand how to read and use your company’s financial statements


Measuring Operational Activities

If it can be measured, it can be managedMeasure those activities with the greatest impact - for example: % of deliveries on time % hours that are billable hours % Product meeting quality specs Manufacturing cycle time % Travel time between service calls % Raw material orders received on time % Scrap / defects Overdue receivables


Non-Financial Key Performance Indicators – Exercise 2

Using the Worksheet in your folder, fill in the existing NON-FINANCIAL measurements (KPIs) that you use for your business

What value does each brings to you?

Think about areas that you think need improvement, but perhaps you don’t have good methods to measure performance.

List new KPIs, based on the workshop discussion, that would be valuable to you to improve operations. How will you measure it?


Non Financial Key Performance Indicators – Exercise 2

10 minutes to work and then discussion


Assessing Your Business

The SCORE Business Needs Assessment, it is in your packet. Download at: http://tinyurl.com/8j7fkgw

It will help you assess the current state of your business in 5 key areas:

1. Management2. Marketing3. Sales4. Finance5. Operations

Decide what additional sessions to attend Develop a customized business improvement plan

http://tinyurl.com/8j7fkgw


Help Us, Help You

Please fill out the evaluation form

Your feedback is important to help us improve our programs!


References

Lean Manufacturing / Lean in the Office (initial reference)

http://en.wikipedia.org/wiki/Lean_manufacturing

The Superfactory Projecthttp://www.superfactory.com/index.html (free

and $$ info)

Improving Performance book by Rummler and Brache

The Executive Guide to Operational Planning book by Morrisey / Below / Acomb

http://en.wikipedia.org/wiki/Lean_manufacturing

http://www.superfactory.com/index.html


Outside Enrichment Programs

Where to get external mentoring, training and education?•Online •Vendors•Industry/professional associations•Colleges and universities•Adult education/continuing education•Training companies/consultants•Business coaches•State Economic Development Department •Chamber of Commerce •American Express OPEN Forum •SCORE.org

Documents

Success Strategies for Business Owners Growing Your Company... Delegate or Perish!