Management Information |
Passion for Profits
Business owners and managers are busier than ever. As their businesses grow and become more complex, they find that they don't have the time to be all things to all people. In the early stages of a business, the owner or manager waits on customers, does the buying, collects past due accounts, supervises just about everyone on staff and may even stay late to stuff the monthly statements. At each stage of business growth, managers must muster the discipline to delegate more and personally perform fewer and fewer job functions to give them time to think and plan. This is not easy. After all, the business is their baby. They oftentimes gave birth to it and have nurtured it to this point, so trusting someone else to assume accountability for key jobs can often feel somewhat like separation anxiety. The problem in life is that it's too short to be good at a lot of different things. How many things can you be really good at? If you're great at sales, odds are you are not terrific at collecting. If you're entrepreneurial, odds are that you're not attentive enough to detail to be really good at administrative tasks. And so on. An observation I have made from performing over a hundred consulting assignments is that most owners, managers and salespeople are quite good at the things that they're the most passionate about. If managers are passionate about profitability, I've noticed that they almost always generate a top-notch bottom line. If salespeople are passionate about new business, they bring a lot of new accounts. Or if they are passionate about producing above average gross margins, they find a way to effectively deal with pricing issues. When executives and salespeople are passionate about golf, skiing, tennis, travel, community or church-related activities, then they tend to excel in those areas, and sometimes to the detriment of their accountabilities on the job. If you are serious about excelling at something - at anything -- the main question you need to ask yourself is: "Where does my passion lie?" I have one client whom I especially admire. He is extremely passionate about two things: his business and his family. He spends the great majority of his waking hours dedicated to these two passions. Like many owners and general managers, he often puts in ten-to-twelve-hour days. But he rarely misses any of his kid's activities. Whenever possible, he manages his business appointments around his family and their needs. On several occasions, I've heard him make appointments around hockey games, school plays, Little League baseball games, etc. But when it comes to business, he is incredibly passionate about earning a satisfactory return on his investment. To show you just how profitable he has been, over the past five years he has funded the assets required to support a substantial sales increase -- well in excess of 20% compounded annual growth -- out of internally generated profits. WOW! Quite an accomplishment, wouldn't you say? Let me give you a couple of other examples of how this owner's passion for success has resulted in so many achievements. 1. Each of the years I have worked with this entrepreneur, he has asked me to recommend several businesses in his industry that I believe do an overall better job than he does. He runs such a good operation that this was always a tough assignment, but he always budgeted the travel time to gain exposure to highly profitable businesses. "I want to visit operations that can teach me a better and more profitable way to service our customers," he will always say. 2. One year, he told me that he thought he could benefit from gaining more exposure to businesses outside our industry. I recommended that he join a local TEC (The Executive Committee) chapter. He allocates one day each month to meet with his TEC group. Then last year, he joined Young Presidents Organization (YPO) to even further expand his exposure. 3. A couple of years ago, he invested in a right hand man to take over the operations end of his business so he could concentrate on another of his passions - sales. While he would admit that he found it difficult to relinquish control over operations, he knew that his business could not continue to grow if he resisted delegating authority. The moral of this story is to concentrate on doing primarily what you love to do - which is usually what you do best - and delegate the rest. Bill Lee is a consultant who works with owners who want to improve their bottom line and author of Gross Margin: 26 Factors Affecting Your Bottom Line. $29.95 + $5 S&H. http://www.mygrossmargin.com Email: blee@mygrossmargin.com
MORE RESOURCES: Unable to open RSS Feed $XMLfilename with error HTTP ERROR: 404, exiting |
RELATED ARTICLES
Einstein, The Universe, And Leadership Every since serving a hitch in the military, I have been nagged by the question that's been hanging around leadership since time immemorial: How can some leaders persuade people to believe in them and follow them and other leaders can't? But it wasn't the military that provided me with a framework to answer that question. It was Albert Einstein and his quest for the unified field theory of the universe. Five Overlooked Ways To Hire Winners Here is a true story. My dentist did a "clinical" evaluation of my teeth. Process and Procedures Investments - How to Get Money Back In September 2004, President Bush signed the $146 billion tax cut bill restoring the recently expired business Research & Experimentation Tax Credit. The 18-month renewal of the research and experimentation tax credit, which expired June 30 2004, was the most expensive item with an expected $7. Pitching to Employees The senior flight attendant on the WestJet flight was starting the routine safety talk: the bit about flotation vests and emergency exits that we ignore at the beginning of every flight."If we could have your attention, please, we would appreciate it - in fact we'd be downright shocked," she said. Appraisal Interviews: What To Say & How To Say It STEPS TOWARDS A GOOD APPRAISAL INTERVIEW:Don't say: "You just don't seem to care about doing a good job." "You seem to be more interested in scoring points against Charlie than in working with him. Change Management: Getting Everyone on Board the Change Train How do you get everyone on board the change train that is gaining speed and heading out of the station? How do you get your people to, not only go through the motions, but also actually "buy into" the changes that are necessary? People's resistance to change is not entirely irrational; it stems from good and understandable concerns. Here are the six most common reasons people resist change and tactics to convert this resistance to commitment. Can You Sleep While The Wind Blows? Let me repeat a story I heard many years ago that has stuck with me throughout my life. The lessons from this fable are many and have been applied to a variety of areas of my life. The Key to Successful Performance Objectives Have you ever tried to drive somewhere without proper directions? This almost always turns out to be a frustrating experience. Sure, if you stop and ask enough people you may eventually reach your target destination, but think of all the wasted energy, time, and resources needed to accomplish your goal. I Said Pareto Chart? Not Potato Chart! Does this sound familiar? You were hired for the new management position. You were tasked to turn the numbers around. Designing Your Healthy Administration - A Management Overview Management or Leadership?Simply stated, management ensures that things get done, in accordance with accepted policies, based on the reality of a situation. It involves deciding the how, and the when and often the who. Resistance - How to Handle It Do you ever meet with resistance from other people - I betyou do! It might be a customer, a colleague, a member ofyour team or even someone in your personal life. Dealingwith resistance or objections is one of the biggestchallenges faced by business people; so let's consider whywe get resistance and how we can handle it. Setting a Pitiful Example: Twenty-six Warnings to Heed * TO: All Parents [and Employers and Managers]From: Your Child and/or EmployeeDate: The present timeRe: Don't Spoil me; Teach Me1. Don't spoil me. Delegating Responsibility Too many managers waste both time and energy performing tasks an employee could perform just as well, thereby lowering productivity while raising operating costs. The answer to the problem is easy-delegation. Performance Expectations - 5 Tips and 5 Questions People want to understand their role - they want to do well! So by being clear, really clear about what it expected of them, makes a big, big difference! And that improves performance as well as saving you time chasing others around to deliver what you want.5 TipsBe Clear - your people need to know what they are doing, both in terms of actions and the standards that you will be expecting. Management Team Section of Business Plans Writing an award winning business plan is a great skill, but rather than winning any awards you need to get funded. In order to be funded the bank, venture capital firm or even family members need to be sure they will either be paid back or receive their required return on investment. Five Ways to Turn Resistance into Opportunity Resistance. It isn't something people cherish or enjoy encountering. The Importance of Business Goals For you to get where you want to go, there are four key steps for you to take. They are not difficult, but they are vital. Stomp Out Leeches In Your Company Recently, I felt appalled to see a political candidate running on the motto of "Demand More!" That motto oozes extreme nerve, and implies some people think it is o.k. 7 Steps To Hire The Best You can use this step-by-step method to hire applicants who are likely to be "superstar" employees:- highly productive- low-turnoverImportant: Focus on hiring applicants you rate positively on all seven prediction methods.1st Prediction Method = Brief Initial Screening InterviewIf an applicant's application looks suitable, then conduct BISI, a customized 15-30 minute over-phone or in-person interview. Why We Judge Judgment is the process of forming an opinion of something by making a comparison. While judgment can play an important role in decisions we must make to live productively, sometimes the thoughts we hold are what prevent us from having what we most desire. |
home | site map | contact us |