Organizational development

Although there’s a strong parallel between creating a winning culture in Sports and Sales, winning cultures come in all shapes and sizes. There’s an important yet subtle distinction between creating a winning culture centered around winning at any cost and winning the right way. The difference between the two is often overlooked and dealt with reactively rather than proactively. The solution typically involves recruiting the right people that fit your organization’s culture, ongoing coaching and training, and how your leadership team communicates their vision, sets expectations, and deals with discipline. As the Business Owner, Visionary, or Integrator, I want to equip you with new concepts that help you create a Winning Sales Culture. Winning a single championship is the goal of most teams, but winning back-to-back titles is the goal of only one team each year. Last year, the

How to increase your EBITDA in Manufacturing; You have tried all cost cutting measures on your shop floor and still not where you want to be? After all initiatives taken, you feel that manufacturing floor looks and feels more chaotic than ever? Here is why it might be so: Every company at their very early stage of their life cycle are pretty lean. The product, the clients and process are as simple as they can be. But during the course of time the product lines, the clients  increase and processes start getting complicated. It becomes hard to follow the product, catch the delivery dates etc. The cost starts building up in the parallel. It comes to a boiling point and EBITDA starts suffering. Company urges to take some actions. And most of the time, as a patient w/o seeing a specialist, looks for some shortcut cure to fix the problem. And guess what? instead of cutting the fat they start cutting from the muscle. Worse than that the lack of follow up on improvement measures due to the daily fire fighting activities starts not going hand in hand. Most of the time the improvements are the ones fall off. That’s when employee morale, trust in management that the problems will be solved starts suffering as well. People start leaving the company and know-how disappears with people leaving as it is in people brains instead of in the DNA of the company. The daily life of employees who decides to stay on board becomes even harder and heavier. So they give up and come to work just to come to work and do the job. The value they add gets limited in time. If this sounds similar to what you are going thru or your client has been facing a similar situation let’s discuss!

RSG is excited to announce our new workshop titled “Professionalizing the Family Business,” which is initially available to MA-based family businesses.  Generous state funding is available since our workshop is approved through the MA Workforce Training Fund – specifically the Express Program. If you have existing MA clients or others in your network that might benefit from the workshop, let’s discuss further and/or please feel free to share.  Thank you!  Below are a few workshop highlights and the link to my workshop summary page. Workshop Summary Page: Overview: Through our workshop, we interact one-one one with your family business participants, teaching you how to further “professionalize” your organization, while preserving the company’s unique attributes, culture and history.  Our instruction covers your current state of professionalism, improvement areas, prioritization and a change roadmap, as well as important considerations for the family dynamic. Defining Professionalism: An approach to managing your operating rhythms that is organized, clear and repeatable in order to effectively execute upon your company’s big picture objectives. Benefits: Improved organizational effectiveness A more sustainable business model A healthier organization and culture Course Structure: 9 hours of interactive instruction, broken out over 3 sessions Available for up to 8 of your employees At your office and/or virtual sessions available Pricing: $6,000 flat fee with generous MA state funding that could very well allow for quick full or partial MA state reimbursement. Know your state funding eligibility and approval status quickly (typically within 3 weeks) and before you decide whether or not to take the workshop.    

In this video, I summarize why a Fractional VP Of Sales is often the best choice for a business in transition. Businesses from $3M-$75m often encounter a “Gap” they have to address before they can leap to the “next level”. This will require professionalizing the sales team by removing or elevating the current leadership from the sales function. An experienced Fractional or Outsourced Sales leader is often the next best step to support this transition. #salesleadership #immediatebenchstrength

Conflict avoidance and mitigation create artificial harmony, and by contrast, teams that are comfortable with “creative conflict” will find that the best ideas emerge from debate.  In ourThe 5 Dysfunctions of a Team, defines good conflict as “productive, ideological conflict: passionate, unfiltered debate around the issues of importance to the team.” Teams without trust certainly do have conflict, but the kind of conflict that’s laced with politics, pride, and competition, rather than the pursuit of the best decisions.  When people who don’t trust each other engage in passionate debate, they’re trying to win an argument. They’re not listening to each other’s ideas or reconsidering their own point of view. They’re figuring out how to manipulate the conversation to get what they want.  Nearly as destructive, some teams avoid conflict and never engage in tough conversations because they don’t want to get uncomfortable. They don’t want to offend, have others feel personal rejection, or feel it themselves. As a leader, you can’t expect to arrive at the best decisions without healthy, creative debate that sometimes gets heated or passionate.  According to Lencioni, “If team members are never pushing one another outside their emotional comfort zones during discussions, then it is extremely likely that they’re not making the best decisions for the organization.” Teams that communicate well are capable of engaging in healthy disagreement and constructive conflict. So what can you as a leader do to minimize unhealthy conflict and foster healthy, productive conflict on your team? Establish conflict norms You’re the leader. You drive the culture.  Conflict norms are essentially rules of engagement, and they can vary drastically from group to group.  When teammates know the rules of engagement, they are more likely to be comfortable speaking their minds and disagreeing about what matters. Some teams don’t have a problem with emotionally charged, loud debate, even if it’s laced with emotion, swearing, or interruption. Some teams prefer to keep things relatively emotion-free, logical, and objective. According to Lencioni, “One thing is certain: having clear norms gives teams a huge advantage when it comes to ensuring the exchange of good ideas.” A measure of judgment is required from you as the leader when setting the tone and ground rules for what healthy debate looks like on your team. Take into account the capabilities and attitudes of your teammates. If you’re unsure how to define these norms, here’s a 30-minute team exercise: Have all team members write down their preferences for acceptable and unacceptable debate, in terms of language, tone, volume, emotional content, expectations of involvement and participation, avoidance of distractions, and timeliness of responses. Have each team member review and explain their preferences with the rest of the team. Discuss collective preferences, paying attention to areas of difference and unacceptable behavior that everyone can commit to. Formally record and distribute your Conflict Norms.  This approach is effective because it gives everyone a chance to be heard. Once the team knows the norms, it makes

Over the past several months – years even – we’ve all witnessed, watched on television, or read in the news or online about child-like spats between those who we are hoping are our strong, confident, stable, trustworthy leaders. What we are seeing from our leaders reminds us of two children fighting over toys in the sandbox. Where are the mature leaders? Where are the ones who promote honesty, selflessness, humility, and will lead without self-justification? Richard Davis, in his article We Need More Mature Leaders, makes the following observation. He wrote this article ten years ago! It is just as true – yet more troubling – today. Now more than ever we need more mature leaders: “Arrogance, pouting, tantrums, personal attacks, and betrayal of trust seem to be the order of the day. Situations at Hewlett-Packard, Yahoo!, and News Corp demonstrate the kind of sandbox leadership that is all too prevalent right now. The timing could not be worse. The nation’s current problems, as vast and overwhelming as they are, appear secondary to the whims of spoiled children, unwilling to play well together. At a time when we need solid, grounded leadership more than ever, we seem to be in short supply of adults who act like, well…like adults.”[1] Sadly, the back-and-forth tirades that we witness between our political figures are very similar to those I’ve witnessed by corporate leaders in board and conference rooms. Some of the most creative and promising – even profitable – companies out there are being led by folks who act like children. I’ve participated in manysignificant meetings with smart, innovative, and intelligent people. My hope has always been that together we can make great decisions for the business to nurture health and create new growth opportunities. Yet, when one person starts shouting, defending themselves, and attacking others in the room, the collaboration shuts down, creativity is lost, and all the open and honest communication we were having comes to a screeching halt. I was on the phone with a client who was on a rant about one of his key people. As he was whining and complaining about them, I literally thought, “He sounds just like a three-year-old having a temper tantrum!” I had to tell him three times (yelling at him the third time) that if he didn’t stop, I would hang up. Why did he sound like a three-year-old? Because he was operating out of his emotional immaturity. Somewhere along the way, even though he had physically aged non-stop, something in the development of his emotional maturity halted and he now acts like an infant. Can’t we all be more mature leaders? Yes, we can! The holes in our emotional maturity are created when we experience some distress and don’t process the emotional pain in a healthy way. Oftentimes the hole is connected to some emotion that we don’t want to feel – we would consider it unpleasant. In fact, universally there are six unpleasant emotions that we often try to avoid feeling: shame, anger, disgust, sadness, fear (afraid), and hopeless despair (S.A.D.S.A.D.). As infants, if we don’t learn how to process these unpleasant emotions in a healthy way, we figure out a way to cope with them, avoid them, or stuff them. This becomes a hole in our emotional maturity and the new standard operating procedure for our brain. It becomes the normal path the brain follows to “deal” with that pain – over and over, again and again. As grown-ups, we now have a way of dealing with that unpleasant emotion that can be triggered by unrelated circumstances. A seemingly innocuous comment by a colleague during a meeting, for example, can trigger a feeling of fear that sends your brain down the same pathway. Rather than responding maturely, you react with anger. Rather than feeling the emotion, you avoid it by lashing out and attacking your co-worker – even friend. The brain stops being relational and is following the same, non-relational method of dealing with that emotion: lashing back at your “enemy.” To learn more about enemy mode, see:

Popular

What's Trending

As an advisor, your role is to help clients prepare to exit their business, yet many people resist thinking about the future because it involves so many unknowns, decisions, and choices.  And emotions typically complicate matters further, sometimes derailing the process altogether.  Here are some questions that can help you establish rapport with your clients, learn more about their concerns, and move the conversation forward. How are you feeling about your work/profession/business these days? Which aspects of work are you still enjoying, and which are you ready to leave behind? Do you envision retiring from work at some point, or are you contemplating an encore career? What part of planning for your future feels most challenging? How do you imagine your life in retirement will be different from how it is now? What process are you using to figure out what you’ll do next after you retire? What would you like to see happen with your business long term? What options have you considered for the transfer of your business? What steps have you taken to make your business more attractive to a potential buyer? What are your concerns about transitioning your firm to new ownership? What would be your ideal scenario for transitioning out of your company? What topic(s) have we touched on today that we should put on our agenda to revisit? So, what happens after you pose a few of these questions and your clients open up about emotional matters?  Remember, the most helpful thing you can do is to listen attentively.  You’ve created a valuable opportunity for them to talk about things they may not share with other advisors.   Here are some tips for managing the conversation when clients raise emotionally loaded topics: Don’t try to “fix things” by immediately offering suggestions. Doing so sends the message that you’re uncomfortable hearing their concern.  You can offer suggestions but do so later. Don’t say anything that conveys the message that their feeling or concern is unwarranted. “There’s really no need to feel that way” or “I’m sure it will be just fine” may sound reassuring to you but could be experienced as dismissive by your client. Don’t immediately offer a logical counterpoint to your client’s emotion. Remember, feelings don’t have to make sense; they’re “as is”.  Put another way, if feelings made sense, they would be thoughts. People report concerns and characterize their feelings differently from one another, so it’s in your best interest to seek amplification and clarification by inquiring as follows . . . “I want to make sure that I understand exactly what you mean by ___.  Can you tell me more?” “People sometimes mean slightly different things when they talk about ___.  What does ___ mean for you?” “Before I suggest anything, I’d like to learn more about it from your perspective.” It’s possible that during early conversations your client may hint at mixed feelings about exiting their business.  That’s perfectly normal, but you need to bring it out into the open.  You want to foster an atmosphere such that your client keeps you apprised about where they’re at.  If they keep their ambivalence to themselves, it has greater potential to blindside you and complicate the sale.  You can say: “In my experience, it’s normal to have some mixed emotions about selling.  Those thoughts may not always be top of mind, but when they do pop up let’s be sure to talk about them.  Believe it or not, they can help inform our process and alert us to aspects of the sale that are important to you.” You may also find that your client is overly risk averse.  If so, consider saying the following: “Our work together won’t be comprehensive if we only plan for what could go wrong.  That’s just half the equation.  It’s fine to be conservative and err on the side of caution, but to be truly realistic we should also consider a range of possibilities both good and bad.”   Author’s Note:  The concepts in this article are derived from Robert Leahy’s book, Overcoming Resistance in Cognitive Therapy.  New York:  Guilford

For five decades, the southern United States has been an attractive location for automakers to open plants thanks to generous tax breaks and cheaper, non-union labor. However, after decades of failing to unionize automakers in the South, the United Auto Workers dealt a serious blow to that model by winning a landslide union victory at Volkswagen. In an effort to fight back, three southern states have gotten creative: they passed laws barring companies from receiving state grants, loans and tax incentives if the company voluntarily recognizes a union or voluntarily provides unions with employee information. The laws also allow the government to claw back incentive payments after they were made. While these laws are very similar, each law has unique nuances. If you are in an impacted state, you should seek local counsel. In 2023, Tennessee was the first state to pass such a law. This year, Georgia and Alabama followed suit. So why this push? In 2023, the American Legislative Exchange Council (“ALEC”), a nonprofit organization of conservative state legislators and private sector representatives who draft and share model legislation for distribution among state governments, adopted Tennessee’s law as model legislation. In fact, the primary sponsor of Tennessee’s bill was recognized as an ALEC Policy Champion in March 2023. ALEC’s push comes as voluntary recognition of unions gains popularity as an alternative to fighting unions. We recently saw this with the high-profile Ben & Jerry’s voluntary recognition. Will this Southern strategy work to push back against growing union successes? Time will tell. Brody and Associates regularly advises its clients on all labor management issues, including union-related matters, and provides union-free training.  If we can be of assistance in this area, please contact us at info@brodyandassociates.com or 203.454.0560.  

I once had the thrill of interviewing Jerry West on management. He was “The Logo” for the NBA, although back then they didn’t advertise him as such. Only the Laker followers knew for sure. In 1989 the “Showtime” Lakers were coming off back-to-back championships.  Pat Riley was a year away from his first of three Coach of the Year awards. 

Can you Offer Too Many SKUs to Your Customers? The short answer is YES! A SKU, or Stock Keeping Unit, defines each different product version that you sell and keep inventory of.  There may be different SKUs of the same overall item based on size, color, capacity (think computer or cellphone memory), features, and many other parameters.  For build to forecast businesses, that number of variations can quickly explode and become difficult to manage. Your customers are busy and want ordering simplified. Of course, they may need (or want) more than one variation of a product. That is reasonable and a common aspect of business – one size does not fit all! But there is a point where too offering too many SKUs is not value added either for your customer or your business.  In his April 30, 2013 article “Successful Retailers Learn That Fewer Choices Trigger More Sales” in Forbes, Carmine Gallo discusses his experience and a study about “choice overload” by other authors. He writes about a retailer that “has discovered that giving a customer more than three choices at one time actually overwhelms customers and makes them frustrated…when the customer is faced with too many choices at once, it leaves the customer confused and less likely to buy from any of the choices!” Choice overload is well-documented in consumer studies but can apply in B2B as well. While customer satisfaction is important, another key concern is the often-hidden costs associated with a business offering and managing a large number of SKUs for a given product type. These costs include holding inventory, S&OP (Sales and Operations Planning) team time, small production runs, and scrapping inventory. Holding inventory takes up space, which may come with a cost or utilize racks that could be used for other products. Scheduled inventory counts take up employee time and may result in blackout periods when the warehouse is not shipping product.  The more SKUs there are, including extra SKUS, the greater the potential impact. The Sales team’s forecasting and the Operations team’s purchasing reviews that are part of the S&OP process can occupy more of their valuable time if they need to consider these times. If small orders or forecasts require a new production run, this could be costly and create excess inventory. Whether from this new production or past builds, eventually it will make sense to write off and scrap old inventory, another cost impact to the company. How do you know which SKUs to focus on if you wish to look at reducing your total number of SKUs? Start by examining SKUs that have: Low historic sales over a period of time Small variations between SKUs that customers do not value Older technology or model when newer option SKUs are available This requires a true partnership between Sales and Operations. It starts with educating both teams on the costs involved – neither group may be aware of the money and time impact to the company. Periodic (such as quarterly) reviews of SKUs that meet the above descriptions should become a fixed part of the calendar. A review of the data and other available for sale options should result in the identification of SKUs which may not be needed. At that point, it is helpful to have a customer friendly EOL (End of Life) Notice process by which you inform customers of last time buy requirements for this SKU and alternates available. It is usually best to provide some time for the last time buy in the interest of customer satisfaction, although that may not always be necessary. At a company that designed and sold electronics, a robust SKU rationalization process was implemented to help address these issues. A representative from the Operations team analyzed SKUs that met a version of the above criteria and suggested candidates for the EOL process. Next, a member of the Sales team reviewed them and, where appropriate, issued product change or EOL notices to customers, providing them time for last time buy orders when needed. These steps helped reduce the work involved in maintaining these SKUs while not leading to any customer complaints. A final note – sometimes it makes sense to continue offering low selling SKUs – to support customers buying other items (hopefully in larger quantities). It may be worthwhile to encourage them to keep coming back to you for all of their product needs and this may be a way to accomplish that. But it helps to understand that this is truly the case and not assume that this customer would not be equally happy with another, more popular, SKU.   Steven Lustig is founder and CEO of Lustig Global Consulting and an experienced Supply Chain Executive.  He is a recognized thought leader in supply chain and risk mitigation, and serves on the Boards of Directors for Loh Medical and Atlanta Technology Angels.

When it comes to careers, business owners are a minority of the population. In conversations this week, I mentioned the statistics several times, and each owner I was discussing it with was surprised that they had so few peers. According to the Small Business Administration (SBA), there are over 33,000,000 businesses in the US. Let’s discount those with zero employees. Many are shell companies or real estate holding entities. Also, those with fewer than 5 employees, true “Mom and Pop” businesses, are hard to distinguish from a job. The North American Industry Classification System (NAICS) Association, lists businesses with 5 to 99 employees at about 3,300,000, and 123,000 have 100 to 500 employees (the SBA’s largest “small business” classification.) Overall, that means about 1% of the country are private employers. Owners are a small minority, a very small minority, of the population. Even if we only count working adults (161,000,000) business owners represent only a little more than 2% of that population. So What? Where am I going with this, and how does it relate to our recent discussions of purpose in business exit planning? It’s an important issue to consider when discussing an owner’s identity after transition. Whether or not individual owners know the statistics of their “rare species” status in society, they instinctively understand that they are different. They are identified with their owner status in every aspect of their business and personal life. At a social event, when asked “What do you do?” they will often respond “I own a business.” It’s an immediate differentiator from describing a job. “I am a carpenter.” or “I work in systems engineering,” describes a function. “I am a business owner” describes a life role. When asked for further information, the owner frequently replies in the Imperial first person plural. “We build multi-family housing,” is never mistaken for a personal role in the company. No one takes that answer to mean that the speaker swings a hammer all day. Owners are a Minority We process much of our information subconsciously. If a man enters a business gathering, for example, and the others in the room are 75% female, he will know instinctively, without consciously counting, that this business meeting or organization is different from others he attends. Similarly, business owners accept their minority status without thinking about it. They expect that the vast majority of the people they meet socially, who attend their church, or who have kids that play sports with theirs, work for someone else. There are places where owners congregate, but otherwise, they don’t expect to meet many other owners in the normal course of daily activity. This can be an issue after they exit the business. You see, telling people “I’m retired” has no distinction. Roughly 98% of the other people who say that never built an organization. They didn’t take the same risks. Others didn’t deal with the same broad variety of issues and challenges. Most didn’t have to personally live with the impact of every daily decision they made, or watch others suffer the consequences of their bad calls. That is why so many former owners suffer from a lack of identity after they leave. Subconsciously, they expect to stand out from the other 98%. “I’m retired” carries no such distinction.       This article was originally published by John F. Dini, CBEC, CExP, CEPA on

Previous
Next

Explore the Knowledge Exchange

Search