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March 23rd, 2010
Morning,
Fact:
3 out of 5 businesses will be sold or change leadership within the next 5 to 10 years. It’s critical that Baby Boomer owners and founders handle the transition well. Unfortunately, most owners are swallowed up into the day to day operations, instead of handling the critical issues that require important communication between family members and other shareholders or key employees.
Fact:
There are sons and daughters out there who believe that one day their parents’ business will simply be given to them. There also some delusional parents who believe their children will buy the business.
Again, communication is the answer to most problems, especially this biggie.
When on vacation in Mexico in February, I read, “Every Family’s Business – 12 Common Sense Questions to Preserve Your Wealth”, by Thomas William Dean, PhD
I recommend it to business founders (parents), their siblings, other shareholders, and key employees. Tom Deans spells out why only 3% of businesses survive a third generation of family ownership and only 1/3 make it to the second generation. In descending order, here are my top five reasons, and why.
5. Putting a child in a position of authority who lacks the skills, drive or capacity to learn.
Effective management and leadership is the key to creating wealth in any business.
4. Timing the sale. Every business has a beginning, middle and end (Recessions, the offering looses its luster over time and leadership gets stuck in the past; company’s technology becomes antiquated as the business loses its edge or competitive advantage. They are ill-equipped to compete in the future.)
3. Parents passing the businesses on when the business is moving toward the end of its life.
2. Not getting the hard elements of a family business right (i.e. compensation to relatives, stock ownership, succession planning, mixing up family communication with business communication, honest annual discussions on performance of siblings, control, protecting the family wealth and getting emotions and elements of the family out of the business.) Its biggest threat is the family itself.
1. Not having honest reality conversations at least once a year between the family members, key employees and the founder. The conversations should be aimed at protecting the family wealth, making money, preserving capital, and managing risk.
Tom presents 12 questions that, when answered openly by all concerned, [At least annually] lead to running a good business, timing its sale, and cashing in on its full value.
Families can unknowingly kill their businesses with love. When was love ever a criteria for promotions at the Royal Bank or General Motors? This can be unfair to sibling as well. Too often the sibling is not in a good position to lead. What is required is clarity of the business and the relationships.
A few years ago, my group helped a successful organization with 3 plants and a home office in the Greater Toronto Area handle its family crisis played out at the parent’s kitchen table as well as in their boardroom. Customers and employees saw this dysfunction but they were incapable of saying what hurt the business and the family the most and exploring the tough issues together. They eventually created a plan for the family that kept relationships adequately okay; kept goals aligned and focused and, most importantly, kept the sale of the stock primary over family employment. Eventually they sold the business to a competitor for lots of cash.
Not every business should be sold to a competitor or to the highest outside bidder. Many companies are sold to family members and the 2nd generation takes the business to another level. Unfortunately, most don’t have a strategic plan that keeps the business from devaluation for the family. When we do this business strategy work for our clients, we ask 11 market centric questions that help design the business for growth.
In the future, when we do strategic work with a family business, we will ask the family to answer Tom’s 12 questions. Without this component, even a great design won’t matter. Combining these two approaches is excellent way to design a valuable business whether or not it is family owned.
Possible Actions, for some of you:
> Read Tom’s book www.everyfamiliesbusiness.com/
> Begin the open, fierce conversations with your family or key employees about how you see the future of the business and what could protect its wealth, whether or not you sell or keep the business
Click here to order the book
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On April 19th, you’ll have a chance to engage with Tom Deans, as he will be our guest speaker on our next Strategy Coffee Huddle. Click here to join the call.
Have a great week,
Kevin D. Crone
CEO
Dale Carnegie Business Group
BusinessNext Inc.
Offering Dale Carnegie Throughout Canada
Tel. 905.826.7300 / 1.800.361.2032 ext. 223
Tags: Business Consulting, Business Strategy, communications training, Dale Carnegie, Manage Stress and Worrry, Monday Morning Mentor
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March 15th, 2010
Morning,
Let me introduce you to Erin and Troy Treleaven – they manage the South Central Ontario team for Dale Carnegie Business Group. Erin was wondering one day where her clients were going, for it was difficult staying connected to them. She realized the world of connecting to people had changed, even to the point that emails to customers were becoming passé. She saw this because people were constantly moving and leaving companies, that even their best supporters couldn’t be found.
 
Erin asked Troy, “How do we grow a business if we can’t reach our customers?” Then she asked Troy, “How many of our clients have this problem?”
Troy replied, “Let’s call Jason Atkins to do a workshop for our customers.” Many attended. It was entitled: “How Do You Build Your Capacity to Maintain Relationships?”
They realized that there are the traditional means of meet ups, sales calls, local industry meetings or you can look at the new online tools which Jason Atkins specializes in and built his business from. They found Jason wasn’t a marketing pro trying to sell anything. He was a very successful business person who was just trying to help everyone succeed by using these tools.
The following are some of the lessons that Erin and Troy have applied to grow their business, using Jason’s lessons.
1)Â Â Â Â Â The traditional intent and methods are still important but using tools like LinkedIn, Facebook, Twitter etc. properly and strategically help you reach and interrupt your clients like never before.
2)Â Â Â Â Â People are using Social Media incorrectly. They are using it to tout their wares with no genuine rapport. Jason taught us how to do it right.
3)Â Â Â Â Â Customers are already interacting online which helps with their busy lifestyles so it works to build a better infrastructure that matches what they are already doing, rather than trying to push something on them. You can’t put an ROI on a telephone – so don’t do it with social media tools. It’s just a method of communicating.
4)Â Â Â Â Â Your social media planning needs to be built right into the DNA of your organization, from front-line workers to back office operations.
5)Â Â Â Â Â Promote your clients on social media channels 12 times more than yourself.
6)Â Â Â Â Â Become genuinely interested and provide sincere value to your network and they won’t view you as an outsider or an unwelcome visitor, like some of the old direct marketing methods.
7)Â Â Â Â Â Don’t just pick one channel. Use many channels because your clients are doing so.
8)Â Â Â Â Â To reconnect, simply ask, “How is it going?… Tell me more about that.” Occasionally offer help when you can.
Actions:
- Join LinkedIn – recommend 5 people to join a discussion group.
- Use the recommendation system that recognizes people for their good work.
- Interview your customers and find out what channels they are using.
- Join those channels and start promoting your customers.
- Read Seth Godin – anything from him is great or Chris Brogin or Mitch Joel from Montreal, he talks about the nuts and bolts of social media.
- Create a volunteer sales force. We have one called the “Carnegie Connectors”.
Most importantly, join us next Monday March 22nd for our “Strategic coffee huddle” Teleconference, where you can listen and talk to Jason Atkins. Troy and Erin will interview him live. Don’t miss this one!
Have a great week!
Kevin
Kevin D. Crone
CEO
Dale Carnegie Business Group
BusinessNext Inc.
Offering Dale Carnegie Throughout Canada
Tel. 905.826.7300 / 1.800.361.2032 ext. 223
kevin@businessnext.ca
Join Kevin on our next complimentary strategic conference call.
Monday, March 22nd , 11:00 am – 12:00 pm EST
With Guest Speaker: Jason Atkins, President & CEO, 360 Incentives
Jason will be talking about:
- How to grow your business with social media tools the right way
- How Jason had phenomenal growth by building his capacity to stay connected with customers
Tags: Business Consulting, Business Strategy, communications training, Dale Carnegie, Monday Morning Mentor, Networking Skills, Social Media
Posted in Monday Morning Mentor | 1 Comment »
March 8th, 2010
Good Morning,
What a lesson the Olympics taught Canada. Our patriotic expression we experienced began with the longest ever 4500 KM relay of the Olympic torch with thousands engaged, raving fans spontaneously breaking into the National anthem in the streets of Vancouver, and at the events… it was amazing!
When Team Canada won the gold medal hockey game, the celebrations spread to streets from coast-to-coast. We won the most gold medals in the history of the games but even more exciting was the explosion of passion, patriotism, and deep emotion about our country. This was extraordinary.
I don’t know whether you saw Canada’s most respected senior news people, Lloyd Robertson, Brian Williams and/or Steven Brunt, give their thesis on what this meant to our psyche. They said the Olympics caused Canadians to come out of their shell – to show their feelings. They said it’s not that we don’t have feelings but our conservative and timid nature, combined with our value of being nice, often restricts us from expressing what we feel. This fact was finally talked about and realized, without a lot of denial or cynicism.
I’ve earned the right to comment on the validity of their comments for I’ve personally, and through our organization, coached well over one hundred thousand Canadians to express their feelings with passion, clarity and impact.
The “un-coolness”, fear of being corny or just plain worried about what people think, shows up everywhere – business, politics, government, sports. Too often this results in coming across as boring, uninterested, conservative, disconnected, when in fact, we are not. We are a wonderful culture. We look out for each other and love our families. Canada is the greatest playground in the world, and it makes us who we are.
Many Canadians often replace showing passion with being cynical, looking smart, cool or say nothing at all. For example, we needed baseball slugger, Dave Winfield, to ask for noise even in a World Series drive in Toronto!
I’m not suggesting being loud, brash or arrogant, I’m talking about showing feelings – for whatever it is you sincerely care about. And it does matter as we saw at the Olympics and it can make a difference.
When people communicate without filtering every word and thought through self-focused, self-conscious, almost self-absorbed nonsense we are free to ourselves at our best. We are free to expose what we love, what we have in common and what is possible.
In business, how does the market really know who you are or what you are about? No generic, sound alike marketing noise does it. Canadians love down to earth sincere people. That’s who we are. So talk real about what matters: your offering, your business, your team. Let the world know!
The conversations you have, your mannerisms, enthusiasm, passion, interest, lets customers and associates see your values and what you stand for. If they relate to them, they will cheer for you and help you succeed and do what ever it takes to work hard for you.
Most importantly, relationships are impacted by solid communications. Yes, all you males, that’s letting others see your feelings, interests and appreciation, and your ability to listen. As always, most problems can be solved with improved communications.
 Insight - Don’t wish things were easier – wish you were better at communicating.
Actions:
Now that we realize that showing our passion for Canada is okay, let’s leverage that.
- Does everyone around you at work know your commitments? Do they know what you are trying to achieve and what you believe in? How about informing or reminding them, then engaging them these same questions, so you know their hopes and aspirations.
- What is it that people on your team need to know about the business and the initiatives required, to help make them happen?
- What associates need to hear are your feelings about them, their work and what you appreciate about them. Why not tell them today – it won’t hurt. Again, sincerity and honest feelings cut it. Flattery and hype does not!
Thanks Vancouver, Canada, and everyone who contributed to the Olympics! It woke us up. We love Canada to bits and now the whole world knows it… now let’s show our passion in all of our communications. Be yourself – you are terrific! You won’t make the world a better place hiding who you are.
New Dale Carnegie appTo help you do that, we launched a new app, “Dale Carnegie’s Secrets of Success” on the iPhone and iTouch that has created a buzz in 14 countries and record setting press coverage. It already ranks as the #1 “Top 10 Business Apps“. It gives you the “how to’s” – even in the toughest of situations – when interacting, leading, solving problems, engaging others etc.
Now you can carry a Mentor/Coach with you in your pocket!
Click here for your app or view Dale Carnegie’s “Secrets of Success” videos on-line.
Join in our LinkedIn discussion group about this new app - click here.
Have a great week!
Kevin
Kevin D. Crone
CEO
Dale Carnegie Business Group
BusinessNext Inc.
Offering Dale Carnegie Throughout Canada
Tel. 905.826.7300 / 1.800.361.2032 ext. 223
kevin@businessnext.ca
Tags: Business Consulting, Business Strategy, communications training, Dale Carnegie, Human Relations, leadership training, Monday Morning Mentor, Sales, Sales Training, Social Media
Posted in Monday Morning Mentor | No Comments »
March 1st, 2010
For many years, our Dale Carnegie Business Group has supported, coached and trained Canadian Olympic Athletes through volunteering with Athletes Can. Our coaches tell me how inspired they are working with these wonderful, focused people. Their genuine desire to succeed shows up in everything they are about and they flat out take coaching, work on their craft and constantly put in the time to bring out their best. And, no, they don’t always win medals but the heart, grit and discipline they learn along the way does them well in their after-sport life in business.
All of us can be inspired by Speed Skater, Clara Hughes, the only athlete in history to win medals in both the Winter and Summer Olympics; or Ashleigh McIvor, or any of these terrific performers. And how about figure skater, Joannie Rochette? How real world, tough she is. To skate the performance of her life and win a medal, while fighting back the tears from losing her mother to a heart attack within days of her skate.
Last Fall, Joannie was quoted as saying, “You have to be really strong – I think it’s a good school of life. Whatever you do after, you know how to fight for your spot and you know how to get by in life. Sometimes you have to do what you never did to get what you never had.”
This young Quebecor could be speaking to all of us in business who need to compete in a hyper-competitive and tougher marketplace – the biggest competition is within ourselves.
What is it that we’ve never done and have to do, to get what we’ve never had?
We all know how important it is to always have performance goals to shoot for. If you don’t have any, you’re not even in the game. The thrill is in overcoming adversity, setbacks and slow performance gains and to keep disciplined (we define discipline as doing something that doesn’t come naturally), to keep learning, adjusting and building our skills until we reach our goals. We may not receive public recognition or win awards but just like the Olympians who don’t, we can be satisfied that we’re better and we gave it our all.
How many people in jobs have cowered during the recession and are afraid to speak up, change or try something new for fear of losing their jobs?
How many management teams have denied, justified or rationalized away poor performance instead of getting closer to the market, listening to customers and adjusting their offering to the motives of the market?
How many business owners are executing the transition plan required to help their team compete and win?
These athletes show us that you have to keep going and never quit. No excuses!
I hope all of us are letting in some of this inspiration and realize that we need to refocus and set new goals and plans that bring out our best.
Inspiration creates ideas; ideas create action; and goals, plans, focus and discipline make our actions work. That’s how it always is.
After watching Joannie skate, Clara Hughes said, “If she can do that with so much pain and sorrow, I’ve got nothing against me tomorrow.” And she went out and won a medal.
Actions – questions to answer
What occurred to you while reading this email? What is more possible for you now?
What goals could you set or refocus on immediately?
How could you achieve them?
Talk to you next week, my fellow business Olympians!
Kevin
Kevin D. Crone
CEO
Dale Carnegie Business Group
BusinessNext Inc.
Offering Dale Carnegie Throughout Canada
Tel. 905.826.7300 / 1.800.361.2032 ext. 223
kevin@businessnext.ca
Proud Supporters of AthletesCan
Tags: Business Consulting, Business Strategy, communications training, Dale Carnegie, Monday Morning Mentor
Posted in Monday Morning Mentor | No Comments »
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