The Power of Initiative: A Beacon for Emerging Leaders

The Cornerstone

In the fast-paced world of business, where competition is fierce and challenges are constant, there’s a trait that stands out above all others: INITIATIVE 

As a seasoned CEO coach for Vistage, I’ve had the privilege of working with award-winning leaders, and one thing consistently sets them apart – their ability to take initiative.

Initiative is not just a buzzword; it’s the cornerstone of effective leadership. But what exactly is it? 

What is it?

Initiative is the proactive approach to problem-solving, the willingness to step up and take charge even when not explicitly instructed to do so. It’s about seeing the bigger picture, understanding strategic objectives, and aligning your actions accordingly.

Think of it like this: imagine you’re in a team project with a tight deadline. Someone who simply does the minimum acceptable job will complete their assigned tasks on time and meet the basic requirements. However, someone who shows initiative will go the extra mile. They’ll not only complete their tasks but also anticipate potential roadblocks, offer solutions, and even take on additional responsibilities to ensure the project’s success. 

This proactive approach not only demonstrates leadership but also fosters trust and confidence among team members.

How to Cultivate

But how do we cultivate this invaluable trait in emerging leaders? It starts with leading by example. 

As mentors and coaches, we must demonstrate initiative in our own actions, showing our protégés what it looks like in practice. We must share stories of success, highlighting moments when initiative made all the difference in achieving a goal or overcoming a challenge.

How to Reinforce

Moreover, initiative can be reinforced through recognition and rewards. Just as a CEO acknowledges and rewards employees who go above and beyond, leaders should celebrate instances of initiative in their teams. Whether it’s a promotion, bonus, or public recognition, acknowledging initiative sends a clear message that proactive behavior is valued and appreciated.

The Data

Now, let’s talk data. According to a survey conducted by Deloitte, companies that prioritize initiative see a 23% increase in profitability compared to their competitors.

Furthermore, a study by Harvard Business Review found that employees who demonstrate high levels of initiative are 47% more likely to be high performers. 

For Example

But perhaps the most compelling evidence comes from the stories of real-life leaders who embody the spirit of initiative. Take the example of Elon Musk. When faced with challenges such as limited resources and skepticism from industry experts, Musk didn’t wait for permission to innovate—he took bold risks and pursued ambitious goals with unwavering determination. His willingness to think outside the box and push the boundaries of what’s possible is a testament to the power of initiative to drive progress and change the world.

Similarly, in the business world, those who seize opportunities and navigate challenges with grace are the ones who leave a lasting impact. They don’t wait for permission to act; they take the reins and steer their organizations toward success. They are the ones who inspire others to follow suit, creating a ripple effect of initiative that propels entire teams toward greatness.

Initiative is not just a trait; it’s a mindset—a way of approaching challenges with courage and determination. 

Action

As emerging leaders, it’s up to you to cultivate this invaluable quality within yourselves and inspire it in others. 

So, the next time you see an opportunity or a challenge, don’t wait for permission to act—seize the moment and let your initiative shine.

Wishing you all the best on your journey to leadership excellence,

“Crushing Business Goals: Turning Dreams into Achievable Milestones”

As an executive coach, I work with business leaders to help them achieve their goals and objectives. One of the most important aspects of achieving success in business is having a clear understanding of the different terms that are used to describe the elements of what make good companies great, namely: 

• mission, vision, values,
• strategic initiatives, goals, objectives, key results, KPIs, 
• strategies, tactics, and actions. 

In this post, I’ll explain the differences between these terms and provide examples of how they are typically used in business.

MISSION

An organization’s mission answers the question of WHY the organization exists. What is its purpose? Making money is not a purpose, it’s an outcome. Mission statements are designed to be inspirational, high level and not easily measurable. Ideally, they should be able to last a long time.

Some examples of good Mission statements include the following:

• Google: “To organize the world’s information and make it universally accessible and useful.”
• Tesla: “To accelerate the world’s transition to sustainable energy.”
• Amazon: “To be Earth’s most customer-centric company, where customers can find and discover anything they might want to buy online, and endeavors to offer its customers the lowest possible prices.”

VISION

Vision is what we aspire to achieve in the next 10+ years. It is best described in SMART terms: specific, measurable, attainable, relevant and time based. It could also be described in the way Jim Collins describes his 4 approaches to creating a BHAG (big hairy audacious goal), namely: 

• Targeting (Setting a clear, definable target and aiming for it) 
• Common enemy (a goal focused on defeating a common enemy.” e.g. Coke and Pepsi, 
• Role model (emulating another business as a role model) e.g. “Thrive 360” – becoming the Netflix of mental health care. 
• Internal Transformation e.g. GE in the 1980s becoming #1 or #2 in every served market 

VALUES

A company’s core values are fundamental beliefs and guiding principles that shape its culture, behavior, decision-making, and interactions both internally among employees and externally with customers, partners, and the community. 

Core values serve as a moral compass and help define the company’s identity, purpose, and character. 

While specific core values can vary from one organization to another, some common examples include:

• Integrity: Upholding honesty, ethics, and transparency in all business dealings, regardless of the circumstances.
• Customer-Centricity: Prioritizing customer needs and satisfaction by delivering high-quality products or services and exceptional customer experiences.
• Innovation: Encouraging creativity and a forward-thinking mindset to drive continuous improvement and adaptability.
• Teamwork: Promoting collaboration, communication, and mutual support among employees to achieve common goals.
• Respect: Valuing diversity, treating all individuals with fairness, dignity, and respect, and fostering an inclusive workplace.
• Accountability: Taking responsibility for actions, commitments, and results, and holding oneself and others to high standards.
• Quality: Striving for excellence in all aspects of the business to deliver the best possible products or services.
• Sustainability: Demonstrating commitment to environmental and social responsibility, such as reducing the company’s carbon footprint or contributing to the community.
• Inclusivity: Welcoming diverse perspectives and backgrounds to create a more inclusive and innovative workplace.
• Adaptability: Embracing change and agility to navigate evolving market conditions and industry trends.
• Leadership: Inspiring and empowering employees at all levels to take initiative and lead by example.
• Communication: Fostering open, honest, and effective communication within the organization.

These core values serve as a foundation for the company’s culture and decision-making processes. They help employees understand what the organization stands for and guide them in aligning their actions with the company’s mission and principles.

Core values can be prominently displayed in company literature, on websites, and in the workplace to reinforce their importance and influence behavior.

Because of this, best practices suggest:

• Limiting your core values to a handful
• Make them easy to remember – eg: spelling an acronym
• Link functional behaviors to each so that you can “catch employees: demonstrating them. 
• Gamify the behaviors rewarding those whose behaviors demonstrate the essence of the core values. 

It’s important to note that a company’s core values should not be mere words on paper; they should be actively practiced and integrated into the company’s daily operations, ideally through behaviors. 

Remember: “Beliefs give offspring to Core Values; Core Values inspire Behaviors; Behaviors create internal company Culture; Culture creates external company Reputation and Brand.” Bill LaRosa circa 1992  

STRATEGIC INITIATIVES

Strategic initiatives (SIs) are the specific programs, projects, or actions that an organization undertakes to support the achievement of its goals and objectives. They are often aligned with the organization’s overall strategy and may require significant resources to implement.

For example, a strategic initiative might involve launching a new product line, expanding into new markets, investing in new technology, or restructuring the organization to better align with its goals.

GOALS

Goals are the high-level, broad, aspirational outcomes that an organization hopes to achieve over a long period of time. They are often aspirational, qualitative and can be difficult to measure.

For example, a company might set a goal of becoming the market leader in their industry or increasing customer satisfaction ratings. Goals provide a sense of direction for the organization, but they don’t provide specific guidance on how to achieve them. A company might have several goals that are overarching and set for a multi-year period.

OBJECTIVES

Objectives, on the other hand, are the specific, measurable outcomes that an organization hopes to achieve in order to support the achievement of its goals. They are usually set for a shorter period of time, such as one year, are more focused and concrete than goals and are designed to support the achievement of a company’s goals.

For example, if a company’s goal is to become the market leader in their industry, their objectives might include increasing market share to a certain level or by a certain amount, launching a new product line, and/or expanding into new markets. Or other objectives might be to launch a new product line within the next 12 months or to increase customer satisfaction ratings by a certain percentage. 

KEY RESULTS

Key results are the specific, measurable outcomes that are used to track progress and declare success in achieving an objective. They are designed to be quantifiable and time-bound and provide a clear indication of whether the organization is on track to achieve its objectives.

For example, if a company’s objective is to increase market share, their key results might include increasing sales revenue by a certain percentage, expanding their customer base, and improving customer retention rates. Or, if the objective is to launch a new product line within the next 12 months, key results might include developing a prototype within the first six months, completing customer testing by the ninth month, and achieving a certain level of sales within the first year

KEY PERFORMANCE INDICATORS (KPIs)

KPIs are the metrics that are used to track progress toward achieving key results. They provide a clear indication of how well the organization is performing in relation to its objectives and are often used to evaluate the success of different initiatives and strategies. KPIs should be relevant to the goal or objective being tracked, and they should be specific, measurable, and time-bound.

Examples of KPIs might include monthly sales figures, customer satisfaction ratings, or website traffic data. If a company’s key result is to increase sales revenue by a certain percentage, another example might be to track website traffic data, social media engagement metrics, customer satisfaction ratings, and sales figures.

STRATEGIES – TACTICS and ACTIONS

Strategies, Tactics and Actions apply to SIs, Goals, Objectives and Key Results. In each of these, answers to the questions of “how” we will achieve our SI, our Goal, our Objective and/or our Key Result and “what” will define the successful outcome will apply. More on each of these follow. 

STRATEGIES

Strategies answer the question: “How?” How are we going to achieve this vision, this goal, this strategic initiative or even this objective or KPI?

Answers might be “organic” like driving growth by entering another less competitive markets (think” Blue Ocean” Strategies) or “in-organically” like acquiring or merging with another company. 

TACTICS

Tactics are the specific actions that are taken to support the implementation of strategies and/or strategic initiatives. They are often tactical in nature and are designed to support the achievement of specific objectives and key results.

For example, if a company’s strategic initiative is to launch a new product line, their tactics might include conducting market research, developing a marketing campaign, and hiring additional staff to support product development.

ACTIONS

Actions are the specific steps that are taken to support the implementation of tactics. They are often operational in nature and may be carried out by different teams and individuals within the organization.

For example, if a company’s tactic is to conduct market research, their actions might include developing a survey, sending it to customers, and analyzing the results.

It’s important to note that these terms are not mutually exclusive. In fact, they are often used together to create a comprehensive framework for setting and achieving business goals.

For example, a company might set a goal of increasing revenue by 20% over the next five years. To achieve this goal, they might set a series of objectives that include launching a new product line, expanding into new markets, and increasing customer retention rates.

For each objective, they might set specific key results that will help them track progress and evaluate success. And, they might use a variety of KPIs to monitor their progress toward each objective.

So, how can businesses use these terms effectively?

Here are a few tips:

• Start with the end in mind. When setting goals, think about what you want to achieve in the long term. Your goals should be aspirational and provide direction for your organization.
• Make objectives specific and measurable. Objectives should be designed to support the achievement of your broader goals, and they should be specific and measurable. This will help you to track progress and evaluate success.
• Use key results to track progress. Key results should be specific and time-bound, and they should provide a way to track progress toward an objective.
• Choose relevant KPIs. KPIs should be relevant to the goal or objective being tracked, and they should be specific, measurable, and time-bound. Choose KPIs that will help you monitor your progress toward your objectives and goals.

EXAMPLE

To illustrate how these terms are used in practice, let’s consider the example of a startup that wants to increase its customer base by 50% over the next year, from 10,000 to 15,000 customers. 

Let’s assume they have a solid Mission, Vision and set of Core Values. 

To achieve their goal, their overall company STRATEGY might be to simultaneously launch one inorganic and three organic strategic initiatives(SIs)

Organically their SIs are to increase brand awareness, improve their product offerings and expand their marketing channels. 

Inorganically their SIs are to acquire their competitor in a fast growing new geographic market segment. 

Each of these “initiatives (SIs)” will have an operational “objective” which includes someone designated as the “owner” responsible for its implementation and completion. 

Each objective will have appropriate STRATEGIES, TACTICS and KEY RESULTS. i.e., How are we going to achieve this, what specific things need to be done by whom and by when, what will be the key results we need to declare success. 

For example, for the objective of improving the product offerings, they might set specific key results, such as developing three new product features within the next six months and increasing customer satisfaction ratings by 10% within the next year.

To measure progress toward these objectives, the startup might use KPIs such as website traffic data, social media engagement metrics, and customer satisfaction ratings. 

For example, they might track website traffic data to see how many new visitors are coming to their site and how long they are staying on the site. They might also track social media engagement metrics such as likes, shares, and comments on their social media posts to see how well their content is resonating with their target audience. And they might use customer satisfaction ratings to track how well their product is meeting their customers’ needs and expectations.

Using these KPIs, the startup can set specific targets for each objective and key result. For example, they might set a target of increasing website traffic by 20% within the next six months, increasing social media engagement by 30%, and increasing customer satisfaction ratings by 10%. By tracking their progress toward these targets, they can make adjustments to their tactics and actions as needed to ensure that they are on track to achieve their goals.

By using a data-driven approach to goal setting and tracking, the startup can increase its chances of success. 

According to a study by Harvard Business Review, organizations that use data to inform their decision-making are more likely to achieve their goals than those that rely on intuition alone. In fact, the study found that data-driven organizations were 6% more profitable and 5% more productive than their peers.

By setting clear goals and objectives, tracking progress using KPIs, and taking strategic initiatives and tactical actions to achieve those objectives, organizations can increase their chances of success and stay competitive in today’s rapidly changing business environment. 

And by using data to inform their decision-making, organizations can make more informed decisions and achieve better results.

12 Insanely Simple Ways To Get Your “Stuff” Prioritized

As we start to exit the summer, we approach the time of year when we start planning for next year and possibly the years beyond. Doing so may have you wind up with a long list of “stuff” that needs to get done. Some of these are tactical and operational, but some might be strategic. Regardless, prioritizing a long list of exciting initiatives (aka “stuff”) can be a daunting task. 

Here are 12 steps I’ve developed over the years, and currently coach to, to help prioritize:

• Align with Goals and Strategy: Start by revisiting your overall goals and business or personal strategies. Each new and old initiative should align with your long-term vision. Consider how each initiative contributes to your mission, values, and strategic objectives.

• Impact and ROI: Evaluate the potential impact of each initiative. Which ones have the highest potential to generate substantial returns on investment? Prioritize initiatives that can bring about significant positive changes to your business.

• Urgency: Assess the urgency of each initiative. Some projects might be time-sensitive due to market trends, competitive pressures, or upcoming events. Address those that require immediate attention to prevent missed opportunities. Consider using the Eisenhower Matrix (shown here) to sort this out.

• Resources and Capacity: Review your available resources, including budget, time, and manpower. Prioritize initiatives that align with your current resource capacity. Be realistic about you and your team’s ability to execute effectively.

• Feasibility: Consider the feasibility of each initiative. Can you realistically execute it given your expertise, technology, and infrastructure? Initiatives that can be implemented smoothly should be given higher priority.

• Stakeholder Impact: Analyze how each initiative impacts your stakeholders – customers, employees, investors, family etc. Prioritize initiatives that create positive outcomes for these groups and enhance your brand reputation.

• Risk Assessment: Evaluate the risks associated with each initiative. Some exciting projects might come with higher risks, including market uncertainty or technical challenges. Balance the potential rewards with the level of risk involved.

• Alignment with Trends: Identify industry trends and emerging technologies. Prioritize initiatives that position your business as innovative and ahead of the curve, helping you stay competitive in the long run.

• Feedback and Input: Gather input from key team members, advisors, and stakeholders. They might provide valuable insights that can help you make informed decisions about which initiatives to prioritize.

• Iterative Process: Prioritization is not a one-time task. Regularly revisit and adjust your priorities as circumstances change, new opportunities arise, or initial initiatives are completed.

• Start Small: If there are several compelling initiatives, consider starting with a pilot or smaller version of the project. This allows you to test the waters and assess the potential before committing extensive resources.

• Balance the Mix: Aim for a balanced mix of short-term and long-term initiatives, revenue-generating projects and those focused on innovation, and initiatives that cater to different aspects of your business.

REMEMBER:  Not every exciting initiative needs to be pursued immediately. Making tough choices and focusing on a few key initiatives can lead to better results and successful outcomes. Keep your vision and strategy at the forefront as you evaluate and prioritize each opportunity.

NEXT STEP:  Commit to start now!

Small Business, Big Ambitions: Crush Strategic Planning Blunders for Explosive Success!

Strategic planning is the compass that guides Businesses (toward their long-term goals and growth. It’s the foundational process that determines a company’s direction and actions. But, like any journey, strategic planning can be fraught with pitfalls. Ignoring these pitfalls can lead to wasted resources, missed opportunities, and even business failure.

In this comprehensive guide, we’ll delve into the most common strategic planning mistakes that SMBs make and provide actionable insights on how to avoid them. Along the way, we’ll include specific data and statistics to drive home the importance of steering clear of these costly errors.

Neglecting Market Research

In the era of data-driven decision-making, neglecting market research is a cardinal sin for SMBs. Yet, it’s a mistake that continues to plague businesses. According to a survey by V12, 61% of businesses that fail to see consistent growth attribute it to poor or nonexistent market research. This statistic underscores the critical role market research plays in strategic planning

Example 1: A Technology Company

Consider a technology startup in the mobile app industry. They invest time and resources in developing an innovative app but neglect to conduct market research. They launch the app only to discover that a similar app with better features has already captured their target audience. The consequence? A wasted investment and missed market opportunity.

Example 2: A Small Manufacturer

In the manufacturing sector, a small company decides to expand its product line without researching market demand. This results in excess inventory of a product that doesn’t align with customer preferences. According to the U.S. Small Business Administration, misjudging market demand is one of the top reasons for small business failure.

Example 3: A Retail Business

Even retail giants are not immune to the consequences of inadequate market research. Blockbuster, once a dominant force in the entertainment industry, ignored the shift toward digital streaming. As a result, they filed for bankruptcy in 2010. Failure to understand market trends cost them dearly.

To avoid this mistake, businesses should invest in thorough market research. Utilize tools like Google Trends, industry reports, and customer surveys to gather data and insights. A well-executed market research plan not only saves money but also paves the way for informed decision-making.

Lack of Clear Objectives and Goals

Without clear objectives and goals, a strategic plan lacks direction and focus. Unfortunately, this is a mistake that many SMBs make. The numbers speak for themselves: 69% of businesses fail to meet their objectives due to a lack of well-defined goals, as reported by the Project Management Institute.

Example 1: A Services Business

Consider a consulting firm that sets vague revenue goals for the year without considering market fluctuations. When the market takes an unexpected downturn, they find themselves falling short of their objectives and struggling to adapt.

Example 2: A Financial Institution

In the financial sector, a bank decides to enhance its online banking services but fails to define clear objectives for customer adoption. As a result, customer adoption rates remain stagnant, and the bank falls behind competitors in the digital arena.

Example 3: A Health Services Organization

Even in the healthcare sector, a lack of clear goals can have serious consequences. A health services organization sets out to improve patient satisfaction but doesn’t specify what that improvement should look like. This ambiguity makes it challenging to measure success accurately.

To avoid this mistake, SMBs should set SMART goals—Specific, Measurable, Achievable, Relevant, and Time-bound. Each goal should be accompanied by key performance indicators (KPIs) that allow for ongoing monitoring and adjustment.

Failure to Involve Key Stakeholders

Strategic planning should not occur in a vacuum. The input and buy-in of key stakeholders are vital for successful execution. Surprisingly, many businesses overlook this step. A survey by McKinsey found that only 45% of frontline employees feel that they have a say in the decision-making processes of their organizations. This lack of involvement can lead to tunnel vision in strategic planning.

Example 1: A Not-for-Profit Organization

Consider a not-for-profit organization that develops a strategic plan without consulting its volunteers. The volunteers, who are on the front lines of the organization’s mission, hold valuable insights into its operations and impact. Their perspectives are invaluable for crafting a meaningful strategic plan.

Example 2: A Home Construction Company

In the construction industry, a company decides to expand its operations without involving its project managers and foremen. These individuals possess on-the-ground knowledge of the construction process and potential obstacles. Their input is crucial for successful expansion.

Example 3: A Commercial/Industrial Real Estate Developer

A real estate developer embarks on a major project without consulting local residents and community leaders. This oversight results in opposition from the community, regulatory hurdles, and delays, all of which could have been avoided through stakeholder engagement.

To avoid this mistake, SMBs should actively seek input from all relevant stakeholders. This includes employees, customers, suppliers, and, in the case of not-for-profits, volunteers and beneficiaries. Regular meetings, surveys, and open channels of communication are essential for fostering stakeholder engagement.

Ignoring Competitive Analysis, Including P.E.S.T.L.E. Analysis

Competitive analysis is a cornerstone of strategic planning, but some SMBs fail to give it due attention. This oversight can lead to significant setbacks. A study by Deloitte found that 68% of businesses experience competitive pressures due to inadequate competitive analysis.

Example 1: A Technology Company

A technology company launches a new software product without analyzing market dynamics or considering external factors. As a result, they overlook that a new government regulation (Legal) significantly affects their product, causing legal issues and setbacks.

Example 2: A Retail Business

A retail chain expands into a new region without conducting thorough competitive analysis. They later discover intense competition and an oversaturated market, leading to financial losses.

Example 3: A Commercial/Industrial Real Estate Developer

A real estate developer starts a massive project without assessing environmental risks. Legal challenges and environmental issues stall the project, leading to significant delays and costs.

To avoid this mistake, SMBs should conduct comprehensive competitive analysis. This should include a thorough examination of competitors’ strengths and weaknesses, market trends, and emerging opportunities or threats. 

Additionally, businesses should consider a P.E.S.T.L.E. analysis (Political, Economic, Social, Technological, Legal, and Environmental) to understand the broader external forces that can impact their strategic planning.

Inflexibility and Resistance to Change

In a rapidly evolving business landscape, being overly rigid in your strategic planning can be a costly mistake. A survey by Gartner found that 37% of businesses cited inflexibility as a significant barrier to adapting to change.

Example 1: A Services Business

A marketing agency resists adopting digital tools and remote work options, even as clients demand more flexibility. They struggle to retain top talent and lose clients to firms offering more modern solutions.

Example 2: A Home Construction Company

A home construction company sticks rigidly to its initial project timeline, even when unforeseen weather delays occur. This results in missed deadlines and costoverruns.

Example 3: A Financial Institution

A credit union is slow to adapt to changing customer preferences for mobile banking. They lose customers to tech-savvy banks that offer more convenient online services.

To avoid this mistake, SMBs should cultivate a culture of adaptability and change readiness. This includes encouraging open dialogue about potential shifts in the market, fostering innovation, and being willing to adjust strategies as needed.

Overlooking Risk Assessment

Every strategic plan should include a comprehensive risk assessment. Ignoring potential risks can lead to unexpected challenges that derail your progress. A study by PwC found that 58% of businesses admitted that they don’t have a well-defined process for identifying and responding to emerging risks.

Example 1: A Financial Institution

A bank fails to consider cybersecurity risks adequately when launching a new digital banking platform. A security breach results in a loss of customer trust and financial penalties.

Example 2: A Health Services Organization

A healthcare provider doesn’t establish clear responsibilities for implementing telehealth services. The result is confusion among staff members, inconsistent service delivery, and patient dissatisfaction.

Example 3: A Retail Business

A retail chain expands into a new market without considering potential supply chain disruptions. When a natural disaster disrupts the supply chain, they’re unable to meet customer demands.

To avoid this mistake, SMBs should conduct thorough risk assessments. This involves identifying potential risks, evaluating their impact, and developing strategies to mitigate them. Risk assessment should be an integral part of the strategic planning process and revisited regularly to adapt to changing circumstances.

Lack of Accountability and Tracking

Strategic planning is only as effective as its execution, and execution requires accountability. A survey by ClearPoint Strategy found that 65% of organizations believe that they don’t have a proper system in place to hold employees accountable for strategic goals.

Example 1: A Retail Business

A retail chain fails to hold store managers accountable for implementing the strategic plan at individual locations. As a result, some stores deviate from the plan, leading to inconsistent customer experiences.

Example 2: A Not-for-Profit Organization

A not-for-profit lacks a system for tracking the progress of its various programs and initiatives. This lack of oversight results in inefficient resource allocation and program underperformance.

Example 3: A Commercial/Industrial Real Estate Developer

A real estate developer embarks on a major project without clearly defined roles and responsibilities for each team member. This results in confusion, miscommunication, and project delays.

To avoid this mistake, SMBs should establish a clear system of accountability. This includes defining roles and responsibilities, setting milestones, and regularly reviewing progress. Transparent communication and regular performance evaluations are essential for ensuring that the plan moves forward effectively.

Rushing the Planning Process

Strategic planning is not a race; it’s a thoughtful, well-paced process. Rushing through it can lead to inadequate decisions and implementation. A survey by Planview found that 49% of businesses believe they rush through the strategic planning process.

Example 1: A Technology Company

A tech startup rushes to release a new product without thorough testing. Bugs and glitches in the product lead to customer complaints and reputation damage.

Example 2: A Health Services Organization

A healthcare provider is slow to adapt to telemedicine options despite changing patient preferences and increased demand. Patients seek care elsewhere, impacting revenue.

Example 3: A Retail Business

A retail chain hastily revises its store layout without consulting staff. The rushed changes lead to inefficiencies and a decline in customer satisfaction.

To avoid this mistake, SMBs should allocate sufficient time for strategic planning. A well-paced planning process includes stages for data gathering, analysis, goal setting, strategy development, and implementation planning. Rushing through any of these stages can result in inadequate decisions.

Recommended Frequency for Updating the Strategic Plan

Strategic planning is not a one-time event; it’s an ongoing process. The recommended frequency for updating your Strategic Plan depends on various factors, including the industry, market dynamics, and the rate of change. 

Here are some guidelines:

Annually: For most SMBs, an annual review and update of the Strategic Plan is sufficient. This allows the company to align its goals and strategies with changes in the business environment, market conditions, and performance metrics. According to a survey by BSC Designer, 65% of companies update their strategic plans annually.

Semi-Annually: In industries characterized by rapid change, such as technology or fashion, a semi-annual review may be necessary. This frequency ensures that the business remains agile and responsive to emerging trends and competitive shifts.

Quarterly: Some businesses, particularly startups or those facing significant market volatility, may benefit from quarterly reviews. A quarterly review allows for more frequent adjustments and ensures that the company can pivot quickly in response to changing circumstances.

Trigger-Based: In addition to regular reviews, SMBs should consider trigger-based updates. These updates occur in response to specific events or milestones, such as a major market disruption, a new competitor entering the market, or achieving a critical business milestone. Trigger-based updates ensure that the plan remains relevant in the face of significant changes.

Regular reviews ensure that your strategic plan remains a dynamic and adaptive tool rather than a static document. It’s a proactive approach that helps SMBs stay ahead of the curve and seize opportunities as they arise.

Conclusion

In conclusion, strategic planning is the foundation upon which SMBs build their path to success. However, avoiding common mistakes is equally critical to realizing strategic goals. By learning from the examples of businesses that have faltered and incorporating data-driven decision-making, SMBs can enhance their strategic planning processes.

Remember, strategic planning is an ongoing journey, and the ability to adapt and evolve is key to long-term success. By recognizing and avoiding these pitfalls, SMBs can increase their chances of achieving their long-term goals, growth, and sustainability in a constantly changing business landscape.

Unleashing Your Leadership Potential: 6 Steps to Become the Next CEO

Becoming a CEO is the pinnacle of success for many ambitious individuals.

It requires a combination of strategic vision, strong relationships, proven results, proactive thinking, effective communication, and exceptional leadership skills.

In this blog post, we will explore six powerful steps that will propel you towards the CEO position. As an executive coach with years of experience guiding aspiring leaders, I am excited to share these insights to help you unlock your full potential and accelerate your journey to CEO success.

1) Develop a Clear Vision

A crucial aspect of becoming a successful CEO is developing a clear and compelling vision for the future of your company. Research indicates that CEOs with a well-defined vision are 50% more likely to achieve their strategic goals. Take the time to understand the strengths, weaknesses, opportunities, and threats of your organization. Craft a vision that aligns with these factors and effectively communicate it to the board and other stakeholders. A compelling vision will inspire others, unite the team towards a common purpose, and demonstrate your strategic acumen.

2) Build Strong Relationships 

Successful CEOs understand the significance of building strong relationships. Research shows that CEOs who excel at relationship-building across all levels of the organization are more likely to achieve long-term success. Foster trust, collaboration, and loyalty by actively engaging with your colleagues, board members, and other stakeholders. Cultivate a genuine interest in their perspectives, goals, and aspirations. By being a team player and demonstrating your commitment to collaborative success, you position yourself as a leader who can unite diverse voices and harness collective potential.

3) Demonstrate Results

Actions speak louder than words. As you progress towards the CEO position, it is crucial to showcase a track record of results. Highlight your achievements and provide concrete examples of how you have delivered exceptional outcomes in your current role. Share key metrics, such as revenue growth, cost savings, or successful project completions, to demonstrate your ability to drive tangible results. By substantiating your claims with solid evidence, you build credibility and instill confidence in your capability to lead the organization towards continued success.

4) Be Proactive

The business landscape is constantly evolving, and CEOs must stay ahead of the curve. To stand out from the competition, demonstrate your proactive approach in identifying and addressing challenges, as well as seizing opportunities. Stay informed about industry trends, emerging technologies, and market shifts. Anticipate potential obstacles and develop strategies to overcome them. By showing your ability to think strategically and take calculated risks, you position yourself as a visionary leader who can navigate the organization through uncertain times and drive sustainable growth.

5) Communicate Effectively 

Effective communication is the lifeblood of impactful leadership. Aspiring CEOs must be able to articulate their ideas, influence others, and address tough questions with clarity and conviction. Hone your communication skills by being concise, persuasive, and empathetic in your interactions. Develop active listening skills to understand the needs and concerns of your stakeholders. Be prepared to communicate your vision, strategies, and decisions in a compelling manner. By mastering the art of effective communication, you will inspire trust, foster engagement, and build a culture of open dialogue within your organization.

6) Show Your Leadership Skills

Leadership skills are the cornerstone of successful CEOs. Showcase your ability to inspire and motivate others, make tough decisions, and guide the organization through change and uncertainty. Develop your emotional intelligence to understand and connect with the needs of your team members. Lead by example, empower others, and create an environment that encourages innovation and collaboration. Through continuous personal and professional development, you can strengthen your leadership capabilities and gain the confidence of your colleagues and board members.

Conclusion 

Becoming the next CEO requires a strategic approach and a commitment to personal growth. By following these six essential steps, you can position yourself as a formidable candidate for the CEO role. Remember, it’s not just about reaching the top position; it’s about making a lasting impact and leading with purpose. 

Embrace the journey of self-discovery, develop your skills, and seize opportunities to showcase your leadership potential. 

As an executive coach, I invite you to reflect on these steps, assess your current progress, and ask yourself: 

• What actions can I take today to accelerate my path to becoming a successful CEO? 

• How can I continue to develop my skills and create a positive impact on my organization and beyond?

With determination, continuous learning, and a focus on building strong relationships, you can unlock your full potential and emerge as the next visionary leader in your industry. 

Remember, the race to the CEO position is not a sprint, but a marathon. Embrace the challenge, stay committed to your growth, and inspire others to join you on this transformative journey.

If you would like further guidance or support on your path to becoming a CEO, feel free to reach out to me. Together, we can navigate the complexities of leadership and accelerate your journey towards extraordinary success.

Are you ready to embark on this transformative journey? 

How will you apply these steps to your own career advancement? 

Share your thoughts and experiences in the comments below. 

Hone your “Perspicacity” (what?)… catapult your business

As an executive coach to CEOs and senior executives, I’ve seen firsthand the power of perspicacityand perspective in achieving business success. 

These two qualities are critical for leaders to possess, yet they are often undervalued or overlooked.

Perspicacity

Perspicacity, or the ability to see things clearly and understand them deeply, is key to making informed decisions and taking effective action. 

Perspective

Meanwhile, perspective, or the ability to see things from multiple viewpoints, is essential for creating innovative solutions and navigating complex challenges.

According to a study conducted by Forbes, 74% of CEOs believe that the ability to perceive the nuances of business situations clearly from multiple points of view is critical to success. 

Additionally, 81% of those same CEOs feel that their organizations need to improve in this area. 

Another study found that companies with leadership teams that bring a variety of perspectives to the table have higher financial performance than those that don’t encourage this behavior.

To achieve “multi view point clarity” (ie: perspicacity and perspective), here are some dos and don’ts for CEOs:

Do:

• Practice active listening: truly listen to what others are saying, both verbally and non-verbally.
• Take a step back: assess the situation from a different perspective or angle.
• Ask questions: gather information and seek clarification.
• Trust your gut: instincts can often be a valuable source of insight.
• Seek feedback: ask for input from trusted colleagues or mentors.
• Actively seek out different perspectives from your team, board members, and external stakeholders.
• Encourage constructive dissent and foster a culture where it is safe to express differing opinions.
• Invest in your own personal and professional development, including emotional intelligence training and mindfulness practices.

Don’t:

• Make assumptions: don’t jump to conclusions based on limited information.
• Ignore warning signs: pay attention to red flags and warning signs.
• Fall into groupthink: don’t let the opinions of others cloud your judgment.
• Rely solely on data: data can be important, but it doesn’t always tell the whole story.
• Let emotions cloud judgment: be aware of personal biases and try to remain objective.
• Surround yourself with yes-men and women who only agree with you.
• Dismiss viewpoints that differ from your own without considering them.
• Get stuck in tunnel vision and fail to see the big picture.

Funny Story

Legend has it that when NASA began sending astronauts into space, they quickly discovered that ballpoint pens wouldn’t work in zero gravity. To solve the problem, they spent millions of dollars developing a pen that would write in space.

The Russians, on the other hand, simply used pencils.

While that may be a funny story illustrating our point, anyone interested in the real story can click HERE to watch a 6 min video on the million dollar space pen.

Bottom Line

So, if you’re a CEO reading this, take a moment to reflect on your own perspicacity and perspective. 

Are you actively:

• Seeking out different and unique perspectives,

• Fostering a culture of constructive dissent, and

• Investing in your own personal and professional development? 

If not, there’s no time like the present to start.

Your company, and your bottom line, will thank you.

7 Reasons Why a Corporate Tax Increase Would Be a Disaster for American Businesses and Consumers – Take Action Today

The debate over a proposed corporate tax increase in the United States has been ongoing, with supporters arguing that it will provide much-needed revenue for the government and opponents warning of the potential negative consequences for businesses and the economy.

Here are some of the ways in which a corporate tax increase could harm the United States:

1. Reduced investment: A higher corporate tax rate will reduce the amount of money that businesses can reinvest in their operations, leading to reduced capital investment, research and development, and hiring. This could slow economic growth and result in fewer job opportunities for Americans.
2. Reduced competitiveness: The proposed 28% corporate tax rate would be higher than many other countries and could put the United States at a competitive disadvantage. This could lead to reduced exports and a loss of market share for American businesses.
3. Harm to small businesses: Many small businesses are structured as pass-through entities, which means they pay taxes on their income through the individual income tax system rather than the corporate tax system. However, some small businesses are subject to corporate taxes, and a higher corporate tax rate could hurt their profitability.
4. Incentivizes offshore operations: A higher corporate tax rate can incentivize companies to move their operations offshore to countries with lower tax rates. This can result in a loss of jobs and economic activity in the United States.
5. Reduced consumer purchasing power: Ultimately, the cost of a corporate tax increase is passed on to consumers in the form of higher prices for goods and services. This can lead to a reduction in consumer purchasing power and a negative impact on the overall economy.
6. Reduction in wages: Studies have shown that a corporate tax increase can lead to a reduction in wages for American workers. This is because businesses have less money to invest in their operations and pay their employees.
7. Negative impact on retirement savings: Many Americans have retirement savings invested in stocks and mutual funds, which could be negatively impacted by a corporate tax increase. This could lead to a reduction in retirement savings and financial stability for Americans.

Who in their right mind could support this?

If you believe increasing the corporate income tax to 28% is a bad idea, please take action today and let your congressional representatives know your position.

The 5 Nightmares Keeping CEOs Up at Night – Are You Ready for Them?”

As a CEO of a company, you may often find yourself up at night, worrying about the challenges that lay ahead. After all, running a business is no walk in the park. In today’s competitive landscape, there are numerous things that can keep you awake at night. 

Here are the top 5 nightmares that private company CEOs are most concerned about

Cash Flow

The lifeblood of any business is cash flow, and it’s no different for private companies. According to a survey conducted by the National Small Business Association, 44% of small businesses struggle with cash flow. As a CEO, you need to make sure that your company has enough money to cover its expenses and keep the business running. If you don’t, your company could face serious financial trouble. A funny story: A CEO of a small business once joked that he had more money in his personal bank account than his company’s bank account. While this may seem like a joke, it’s unfortunately all too common among private company CEOs.

Growth

Every CEO wants their business to grow, but growing a private company can be especially challenging. According to a survey conducted by Deloitte, private company CEOs are concerned about generating new business and expanding their customer base. This can be particularly difficult in industries that are already saturated or where competition is fierce. A stat: Only 25% of private companies with revenues under $1 million are growing.

Recruiting and retaining top talent

Finding and keeping talented employees is a major challenge for private company CEOs. According to a survey by Vistage, 56% of CEOs cite “attracting and retaining employees” as one of their biggest challenges. Private companies often struggle to compete with larger companies in terms of benefits and compensation. A funny story: A CEO once joked that his company’s 401(k) plan was “one step up from a Monopoly game.”

Government regulations

Private companies have to navigate a maze of government regulations, which can be a major headache. According to a survey by the National Small Business Association, 46% of small businesses cite regulations as a major challenge. Compliance with regulations can be time-consuming and costly, especially for small businesses with limited resources.

Cybersecurity

In today’s digital age, cybersecurity is a major concern for private company CEOs. According to a survey by Hiscox, 47% of small businesses experienced at least one cyberattack in the past year. Cyberattacks can be devastating for small businesses, resulting in lost revenue, damaged reputation, and lost customer trust. A stat: The average cost of a data breach for a small business is $120,000.

Running a private company is no easy feat. CEOs of private companies have to deal with a host of challenges that can keep them up at night. From cash flow to growth to cybersecurity, there’s always something to worry about. 

Overcoming the nightmares

But with the right strategies, the right peer groups (Vistage, for example) and a bit of luck, private company CEOs can overcome these challenges and lead their companies to success.

What is Free Cash Flow and (more importantly) why does it matter?

Are you a leader in a private or public company? If so, then you need to understand the importance of free cash flow.

While profit and revenue are important, they don’t necessarily indicate whether a business is financially stable or able to invest in future growth. Free cash flow, on the other hand, provides a more accurate picture of a company’s financial health.

What is Free Cash Flow?

Free cash flow is the amount of cash a company generates after accounting for all its expenses, including investments in fixed assets and working capital. It measures how much cash a company has left over to invest in growth opportunities, pay down debt, or return to shareholders. Positive free cash flow is critical for all companies, but especially for SMB private companies because they often have limited access to capital markets compared to larger public companies. Without positive free cash flow, SMB private companies will struggle to fund operations, invest in new projects, or pay off debt.

How Free Cash Flow Can Help

EBITDA offers a way to judge a company’s profitability at a sort of baseline level. On the other hand, free cash flow allows a business to demonstrate how well it generates and handles cash — from collecting payment to paying its own bills.

Free cash flow can help SMB private companies make better strategic decisions. For example, if a company has positive free cash flow, it may be able to expand its operations, acquire new businesses, or invest in new technologies.

On the other hand, if a company has negative free cash flow, it may need to cut costs or seek additional financing to avoid financial distress.

SMB private companies that prioritize free cash flow can be more attractive to investors and lenders. Positive free cash flow signals that a company is financially stable and has a strong foundation for growth. This can help businesses secure favorable terms for loans or attract equity investors.

A few different Examples

One company that has leveraged its free cash flow to its advantage is Apple. In 2019, Apple generated an impressive $66.3 billion in free cash flow, allowing the company to fund its dividend payments, buybacks, and investments in research and development. As a result, Apple’s stock has seen significant growth in recent years, and the company has become one of the most valuable in the world.

On the other hand, companies with negative free cash flow can be seen as red flags by investors. Negative free cash flow can indicate that a company is not generating enough cash to fund its operations or investments, which could lead to financial distress.

Take WeWork, for example. In 2018, the company had negative free cash flow of $2.36 billion, indicating that it was burning through cash at an alarming rate. This, along with other issues, ultimately led to the company’s IPO failure and significant financial losses for investors.

Here are two other real-world FCF examples from two different companies, Chevron and Nike.

First, from Chevron’s statement of cash flows from its third quarter 2020 public filing:

• (Net cash provided by operating activities of $8.3 million)-(Capital expenditures of $6.9 million) = Free cash flow of $1.4 million during the first nine months of 2020.

And from Nike’s 2020 second-quarter filing under the consolidated statement of cash flows:  

• (Cash provided by operations of $3.4 billion)-(Additions to property, plant, and equipment of $344 million) = Free cash flow of $3.02 billion during the six months ended November 30, 2020.

Critical in Downturns

Monitoring free cash flow can help SMB private companies weather economic downturns or unexpected expenses. Businesses that have positive free cash flow are better positioned to survive market disruptions or unexpected expenses, such as equipment breakdowns or supply chain disruptions.

As the saying goes, cash is king, and in times of crisis, having a strong free cash flow can mean the difference between survival and bankruptcy.

A Funny Story

Warren Buffett once famously quipped, “Cash combined with courage in a time of crisis is priceless.”

While free cash flow cannot necessarily provide courage, it can provide the cash that companies need to weather economic downturns or unexpected events, such as a pandemic.

Your Net

In other words, free cash flow is like a financial safety net that can help businesses.

So what does your FCF look like? How prepared are you for a downturn?

Why Professionalism is Like a Good Pair of Shoes: It May Not Solve All Your Problems, But it Can Help You Go Places!

PROFESSIONALISM is a term that is frequently thrown around in the business world, but what does it really mean? And, why does it matter?

In short, professionalism is the way in which one conducts themselves in a business setting. It encompasses everything from how you dress, to how you communicate, to how you handle difficult situations.

While it may seem obvious that professionalism is important in business, the reality is that many individuals struggle with this concept.

This can be due to a variety of factors, including a lack of training, cultural differences, or simply a misunderstanding of what professionalism entails.

WORK vs PLAY

One key aspect of professionalism is the ability to maintain a clear separation between work and personal life. While it’s certainly possible to have friendly relationships with coworkers, it’s important to remember that ultimately, business is not a game – it’s business. This means that while you can certainly enjoy yourself while working, there is a thin line between being viewed as a valued professional and being seen as a “good ol’ boy” or worse.

APPEARANCE

Another important aspect of professionalism is appearance. While it may seem superficial, the reality is that how you dress and present yourself can have a significant impact on how others perceive you. In fact, research has shown that individuals who dress professionally are often viewed as more competent and authoritative than those who dress casually or sloppily.

So, please lose the sweatpants, and don’t be the one to show up on a zoom call with your pajamas on.

According to a study by LinkedIn, 76% of professionals believe that dressing professionally leads to career success. This shows the importance of looking the part. Wearing the right attire for a meeting or event can make all the difference in how others perceive you. Dressing professionally not only shows respect for the business situation, but it also helps you to feel confident and prepared.

ACTIONS

Acting professionally is equally important. This includes being punctual, respectful, and prepared. Being on time for meetings, returning phone calls and emails promptly, and being respectful to everyone you encounter are all crucial elements of acting professionally. In addition, it’s important to come prepared to meetings with any necessary materials or information. By doing so, you show that you value the time and effort of others and are committed to making the most of your time together.

COMMUNICATION

But professionalism is about more than just appearance – it’s also about how you communicate and interact with others. This includes everything from using proper grammar and avoiding slang, to being respectful and courteous to coworkers, vendors, and clients alike.

PERCEPTION

Perception sometimes is more important than reality. When the reality of who you are is unknown, it’s up to you to make sure that the perception is a positive one. This means paying attention to your body language, tone of voice, and the way you present yourself. It’s important to maintain a professional demeanor at all times, even when you’re outside of the office. You never know who you might run into and what opportunities may come from those chance encounters.

CEOs & BUSINESS OWNERS TOO!

It’s worth noting that professionalism is not just something that is expected of employees – it’s also something that business owners and executives should strive for. After all, a company’s reputation is often closely tied to the professionalism of its leadership.

DO and DON’T

Here are some DOs and DON’T’s to help you maintain a professional image:

DO

• Dress appropriately for the occasion
• Be on time for meetings
• Return phone calls and emails promptly
• Come prepared with necessary materials or information
• Be respectful to everyone you encounter

DONT

• Use inappropriate language or humor
• Show up unprepared for meetings
• Be disrespectful or dismissive to others
• Dress too casually for the occasion
• Overshare personal information

Remember, being professional doesn’t mean you have to be stiff or unfriendly. You can still be personable and engaging while maintaining a professional image. By doing so, you’ll not only gain the respect and trust of your colleagues and clients, but you’ll also set yourself up for success in your career.