News

What projects REALLY matter in your business?

Tue, 04 Sep 2012 05:00:00 GMT

Some tasks keep your business going and some tasks keep your business growing. The tasks that keep your business growing are commonly strategically linked and incorporated into a larger project.

Identifying what projects your business initiates is contingent on your customers’ future requirements or desires. For the Steve Jobs of the world, these projects include producing products and services even before your customers know they want them! But that is an entirely different article.

What will your customers require from your business between now and 2015? 2020? Will it involve any of the following?

-Technology implementations
-Business development initiatives
-Introduction of new product lines
-Integration of businesses after an acquisition or merger

Your answers—and maybe they are at best guesses-- come from your strategic plan. Your plan is your GPS for your business decisions and from it you identify, define, plan, execute and close out projects which form the foundation for growth and development.

What projects really matter in my business? The ones you know will keep your business going and growing.

Given the fact that fewer than 30% of the projects companies initiate to change their business are successful, let Clover Management Group add its expertise and resources to help you plan and implement the projects that really matter to your business.

What Got You Here

Wed, 24 Aug 2011 21:46:00 GMT

What got you here won't get you there.

That sentence is the title of a business book that develops the premise that a handful of workplace habits often keep successful people from making the next leap forward in their career.

While the personal application is useful, think about how that admonition applies to the growth of your company.

Since you began your business or took over the management of your company, you have experienced successes that have given you a positive feeling about the results and your abilities. Your self-esteem has gone up and you have developed more confidence in your abilities and your decisions.

Believing in yourself is important.

However, doing the same things in the same ways will give you the same things you've always have had. Another cliché—doing the same things in the same ways and expecting different results is the definition of insanity.

What matters are the questions you have asked to get where you are. Now that your business has grown or matured, it is important to ask the questions again—not expecting that the answers will be same.

Second, be prepared for what you have worked for. You must grow yourself as you grow your business. One business guru predicts that he can know what we will be in five years by knowing the people we know, the books we read, and …

Third, hire smart people to take your business to the next stage of development. Know where your strengths are. Understand your limitations. Let your team do their work. They will make you look good.

Team Pruning

Wed, 24 Aug 2011 21:43:00 GMT

How do you trim your shrubs? Maybe you don't. If you hire someone to do that chore,

take time to notice how some of the lawn care workers handle that task. They trim by cutting the long and uneven shoots to shape the bush or shrub to its predetermined form. This method does not take into account that the bush may have a tree, weed, or some other plant growing with it. All the vegetation is trimmed and shaped together.

Pruning, on the other hand, is an entirely different procedure. The purpose of pruning is removing dead, weak, or misshapened parts of the plant with the purpose of strengthening the roots and major trunk. Weeds, vines, trees, and other plants are removed from the earth around the shrub roots. Anything that would steal water and nourishment from the main plant is dug up. Healthy plants, not beautiful form or shape, is the purpose of pruning.

Business teams are like shrubs. Some teams look pretty and seem to be functioning effectively. However, some members may be sapping nourishment and energy from the group and from your business with poor attitudes, lazy work habits, inadequate training, or distracting behaviors.

Continuing to shape the team with superficial measures does not strengthen the team. Pruning is necessary. Removing the energy sapping distraction is the only way to strengthen the team and the organization.

Don't be afraid to trim, remove, or replant to get the team with the values, attitudes, and skills that contribute to the profitability and productivity of your company.

Pruning may be ugly—but just for a little while. In the long run, the team and your company will be stronger.

If you have a strong team, nurture it. If you don't, get out your pruning shears. A morning glory vine stays a morning glory. It never becomes a boxwood.

Active Listening

Wed, 24 Aug 2011 21:41:00 GMT

Can you hear me now?

If you use a wireless telephone, you have probably asked that question many times. Both sending and receiving signals are essential to telecommunication. If your phone cannot send a signal or if it cannot receive a signal, you cannot receive information much less communicate with another person.

Being able to hear the words is the first step in communication. This step seems so basic that even mentioning it appears irrelevant. However, think of the times you have been in a crowd or in a noisy room and hearing the person talking is difficult. How many times have you been in a presentation when the speaker refuses the microphone by announcing "I have a loud voice"? Just because a speaker can talk loudly does not mean that persons in the audience can hear or make out the words. (Can you hear me now?)

So, what is the difference between hearing and listening?

Hearing is receiving the sound waves and deciphering the frequencies. Hearing involves the physical act of using our ears—the receptacles for catching sound waves and sending them to the brain for interpretation. Being out of "ear shot" means your ears are not receiving the sound waves. It is possible, however, to hear and not listen. (Have you heard anything I've said?)

Listening is one of the most important and powerful skills we have. Listening is hearing what is said and understanding what is meant. How well we listen has a major impact on job effectiveness and quality relationships.

In fact, listening is such a large part of everyday living you would think we would be good at it. However, studies show we remember between 25 and 50 percent of what we hear. When we talk with colleagues or family members, they might pay attention to half of the conversation. Turn that around, and when you are receiving directions or being presented with information or feelings, you are not hearing the whole message. And, what if we have not captured the most important parts?

How do you know that what you are hearing is what is being said?

First, pay attention. Look at the speaker. Give eye contact. Put away your computer and cell phone. Your non-verbal communication is "talking" even when you are not saying a word. Let your gestures and facial expressions convey your attention. Be quiet. You know the power of paying attention if you have talked with a person and have felt as though you were the only person in the room.

Second, think about what the speaker is saying. Listening is not about you. It is not taking turns talking. Listening is working to understand the speaker's messages—what is the speaker thinking? What is the speaker feeling?

Third, clarify by asking questions. Paraphrase. Restate without judgment what you hear the messages to be. This process tests your understanding of what you heard and of what the speaker meant. Use statements and questions such as What I am hearing is, Sounds like you are saying, Is this what you mean? As active listeners, we are seeking for information about the speaker's thinking and feelings. The meaning of the message is the speaker's responsibility. As the listener, you may ask: "What I thought you just said is XXX, is that what you mean?" If the speaker says, "No," you will need to ask more questions for clarification.

Next, respond appropriately. It is easy to take some conversations personally, but don't let emotions guide the discussion. Ask for information, describe your feelings, but do not allow judgmental words in the conversation. The purpose of active listening is gaining information and perspective. Nothing is gained by attacking or demeaning others.

Active listening is a model for respect and understanding. It is assertive (not aggressive) communication where participants are candid, open, honest and respectful.

Being a good listener means we will concentrate on the message, ask questions, reflect, and clarify to ensure we understand the thoughts and feelings of the speaker. By starting today, we can become more effective communicators, improve workplace productivity, and develop better relationships.

Are you listening now?

Economic Impact of Your Business

Wed, 24 Aug 2011 21:38:00 GMT

Your business is important to you.

Have you thought about whether your business matters to anyone else?

The answer to this question is known as economic impact. When a stone is dropped in a river, the stone's impact pushes waves outward through the water. The money dispersed through your business passes through Brentwood, Williamson County, Davidson County, central Tennessee—and beyond. Your expenditures create waves through this region's economy.

The nearest wave is the smallest in diameter but higher and more forceful than the others because it is the most direct. Your business's direct impact is all your financial outlay: payroll, insurance, taxes, supplies, vehicles and gas, vehicle maintenance, rent/lease/mortgage, building maintenance, utilities, and the list goes on and on. If you want to know the direct economic impact of your business, look at your total expenditures for a year. You will see how important your business is to many other people.

The second wave is not so high as the first, but it is larger in diameter. It moves farther from the center. Your business impact moves indirectly through the economy as your direct financial outlay is being spent by the people and businesses you paid. Because your business spent money, these businesses, families, and individuals have money to spend.

Based on your direct financial outlay and the resulting purchases by organizations and individuals with whom your operation does business, you can determine a total economic impact by using multipliers. The idea of multipliers is based on the fact that when a person spends money at a gas station, for example, that purchase supports the budget responsibilities of the station attendant, who will buy groceries, pay rent, and so on.

These multipliers vary from region to region based on how a dollar is spent again and again within the same community.

Just as multiple waves move from the dropped stone, the impact of every dollar your business spends is multiplied in the community and the larger economy. Other businesses prosper because of your business financial expenditures.

However, economic impact is greater than the singular look at money, and that story is and of itself is important. Economic impact is the story of people and how their use of money impacts the economic vibrancy and quality of life in Brentwood and Williamson County. It is the story of people who have jobs and who make a difference for their families, their churches, their neighborhoods, and the lives they touch.

So, the next time you write a check, know your business matters—to a whole lot of people.

Conflict resolution 101

Sun, 31 Jul 2011 05:00:00 GMT

Why can't we all just get along?

That question is a good one if you are assuming that we should all agree all the time. The fact is that we can agree all the time only if you see things exactly as I do … and if I don't change my mind!

We not only don't see things the same way all the time, but we don't see things the same way most of the time. We are different individuals with different experiences, values, motivations, perceptions, and ideas. And, conflict may arise from differences.

Sometimes differences look trivial. They may be trivial to onlookers, but the differences become conflict when they trigger strong feelings and deep personal needs.

So, how do we get along? How do we get things done? How can we work together?

Authorities describe five important concepts about conflict:

A conflict is more than a disagreement. One or more parties feel threaten (rather the threat is real or not).
Conflicts continue to fester when they are ignored. They must be faced to be resolved.
Individuals respond to conflicts based on perceptions not necessarily on an objective review of facts.
Conflicts trigger strong emotions. Managing emotions during times of stress is a key to resolving conflict successfully.
Resolving conflict is an opportunity for growth.

During the 1970s, two scientists created an instrument that can be used to help us assess our dominant style for addressing conflict—The Thomas Kilmann Instrument. You can find it on the internet. Drs. Thomas and Kilmann identified five basic ways of addressing conflict:

Accommodation—surrendering one's needs with wishes to accommodate another party (I lose, you win).

Avoidance—avoiding or postponing conflict by ignoring it—hoping it will go away. Avoidance can be a temporary measure to buy time. In more severe cases, conflict avoidance can involve severing a relationship or leaving a group. (I lose, you lose)

Collaboration—work together to find a mutually beneficial solution. Trust, respect, or communication must exist among participants for collaboration to occur. (I win, you win)

Competition—asserting one's viewpoint at the potential expense of another. (I win, you lose)

Compromise—bringing the issue into the open and using a third party. Compromise usually involves some part of the other four means of addressing conflict.

All five of these styles involve assessing how important this issue is to me vs. how important this relationship is to me. In other words, how important is it to me to assert my view vs. how important is it to me to preserve this relationship through cooperation.

In the past, some people in charge felt they had the power to say and act like: "It's my way or the highway!" And, that type of decision making certainly did not take much time.

Today's leader, however, listens to what is being said and to what is not being said. Paying close attention to facts and feelings gives a leader the opportunity to build trust and respect. Those attributes are the foundation of relationships…and relationships help us to get things done.

One more thing: learn to agree to disagree. It takes two to keep an argument going. If a conflict is going nowhere with no good in sight, choose to disengage and move on.

If we can't get along, at least we can move along.

Arnelle Adcock is a partner and president of Brentwood-based Clover Management Group — a team of seasoned professionals who help business owners. You can reach her at 615-900-0777, aadcock@clovermg.com, or www.clovermg.com.

Driving your business to its destination

Sun, 24 Jul 2011 05:00:00 GMT

Where do you look when you are driving? Of course, you are thinking: where else but straight ahead at the road.

You do look other places, don't you?

You look in the rear view mirror to gauge the traffic activity behind you. Your heart probably skips a beat and your foot presses the pedal when you see a speeding car closing in.

Occasionally you glance in the side mirrors and through the side windows to make sure you are OK on both sides.

Have you noticed, however, if you look at the 18-wheeler you are passing that you have a tendency to steer across the line and into the truck?

And you know the hazard of doing anything but looking at the road and keeping between the lines as you pass over a narrow bridge meeting an F-350!

Steering a company is very much like driving a car. Knowing where you have been —looking in the rear view mirror, so to speak — is crucial. But, what if that is the only direction you look? If you are driving backwards, looking backwards is a good idea. However, if you are accelerating forward but looking backwards, a wreck is probably imminent.

Looking sideways helps a business owner scan the environment. Knowing what is going on around you is crucial for making informed decisions.

Keeping your eyes on the road ahead has a lot going for it. But, you need to have other information, too. Going fast straight ahead does not mean you know where you are going. You are just getting somewhere in a hurry. Some drivers rely on GPS — information that tells them where they are. Two other tools are extremely important, however: a map and a dashboard.

Even with GPS, a driver must know a destination address. A map offers a preferred route and alternatives. Having a perspective of the entire trip helps a driver choose alternative routes if a detour is necessary.

The dashboard measures and reports information about the car — fuel, revolutions of the engine, oil pressure, tire pressure, battery ….

As the driver of your company, get out your map and keep an eye on your dashboard. Having a clear vision of where you are taking your company is selecting your destination — knowing where you want to be. Strategic thinking and planning create a map for reaching that vision. Setting key performance indicators gives you a dashboard to monitor the maintenance and adjustments your company needs during the trip.

While we are using this analogy, we could ask: are you taking better care of your personal vehicle than you are your company?

It is just a thought; but we won't go there today.

Buckle your seatbelt and get on the road. You want to beat the traffic.

Knowing your cash flow key to success ... and getting paid

Sun, 17 Jul 2011 05:00:00 GMT

Let's talk about money.

You want your business to make money…a lot would be good. And, you want to be able to keep as much as you can.

What we're talking about is cash management and cash flow. Are you actually making money (a profit), not just recording sales?

Most businesses are good at tracking income. Each sale is recorded in a book, on a spreadsheet, or as part of the cash register ticket. In reality, that total is not profit. That figure represents revenue — money coming in. In order to figure profit, you must subtract the money that is going out from the money that coming in.

Income minus costs equals profit.

Your business has two types of costs — fixed expenses and variable expenses.

Fixed expenses are those costs that remain constant month by month and don't change based on your level of work — whether you do a lot or none at all. Fixed costs include items like rent or mortgage, depreciation, licenses, interest payments, and some taxes.

Variable expenses depend on your production level — how much work you are doing and the materials, supplies, and direct labor needed to produce the work. Variable expenses are present whether you are in manufacturing, retail, or professional services.

An important figure to know in operating your business is the breakeven point. How much revenue do you need to cover your fixed and variable expenses? That number is your breakeven. Any sales above that point is profit — money in your pocket, so to speak. That's when you know it is possible to make money. However, one other thing has to happen before you know you are making money.

So, let's return to our conversation about income and focus on cash flow. Cash comes from revenue, but it is not the same thing. Cash is when you actually get paid, not when you make the product or perform the service. You don't have the money until your customer pays you. Therefore, knowing your cash flow means you know when you receive money and when you pay money.

The cash flow statement is known as the statement of cash flows and is one of the main financial statements, along with the balance sheet, income statement, and statement of stockholders' equity. The cash flow statement reports the cash generated and used during a specific period (such as a quarter or a fiscal year).

The other financial statements contain the cash information but just not so directly as the cash flow statement. Because the income statement is prepared using the accrual basis of accounting (not the cash basis), the revenues reported may not have been collected. Similarly, the expenses reported on the income statement might not have been paid. You could review the balance sheet changes to determine those facts, but the cash flow statement already has integrated all that information.

You can see how important it is for you or your accounting professionals to prepare a statement of cash flows along with the other financial statements.

As a savvy business person, you can use the cash flow statement in various ways. Here are two of the most obvious:

Compare the cash from operating activities to the company's net income. If the cash from operating activities is consistently greater than the net income, the company's net income or earnings are said to be of a "high quality." If the cash from operating activities is less than net income, a red flag goes up as to why the reported net income is not turning into cash.
The cash flow statement identifies the cash that is flowing in and out of the company. If a company is consistently generating more cash than it is using, the company is increasing the owners' equity or the stockholders' value.

When your cash flow position is strong, you are happy to hear the question: "Are you making any money?"

Because the answer is YES.

Arnelle Adcock is one of the two tall women who owns Clover Management Group in Brentwood. Contact her at aadcock@clovermg.com.

Time Management

Wed, 01 Jun 2011 05:00:00 GMT

Let's ban time management. Someone who says, "You have time management issues" has not grasped the nature of life and work. Those people want us to live according to their decisions.

Time management is not a calendar, or a PDA, or a new piece of software. Those aids help manage work and activity. Time management is really a decision about your life, who you want to BE, and what you want to DO.

Think first of life management. Take the time to decide what you want to BE when you grow up. No matter your age, can you summarize in a few sentences what you want to accomplish with and during your life? Once you know what you intend to be and do, many distractions can fall by the wayside. Your purpose is clear and that type of focus and specificity attracts similar people, activities, and opportunities to you. Purpose and definition are the beacons from your lighthouse.

Another element of time management is self management. Organize and systemize yourself so that you are accountable for your responsibilities and obligations. Individuals look at time based on such things as their values, personality type, and experiences. So, self management is just that: what tools do I need and how do I arrange my surroundings so that I am trustworthy with my calendar and schedule—people in my life can count on my being where I say I will be and doing what I say I will do.

Project management requires the ability to identify the scope of a project, the time line of tasks, and the allocation of resources—including time and energy. Of course, the skills of goal setting, planning, task identification, and completion are crucial. Family projects--such as planting a garden, painting the house, or preparing a child to leave for college—can be planned in the same way as work projects like installing a new piece of equipment.

The most basic element of time management is task management—the DO list. Knowing what needs to be done and doing it. The challenge of this category is not living the tyranny of the DO list and missing the making of a life. Seeing only the trees and never the forest. Seeing the WHAT and never the WHY.

If you want tools to help you, many software products, diaries, and calendar keepers are on the market to satisfy you. And, a pencil and paper can be as helpful. The point is Intention and Attention. You decide and intend who you are and what you are doing. It is purpose, vision, goals, plans. Then you give attention—you attend—to the tasks to get the job done. Life is more satisfying when we live on purpose, not by accident.

The American poet Carl Sandburg observed that "time is the coin of your life. It is the only coin you have, and only you can determine how it will be spent. Be careful lest you let other people spend it for you."

We would add: If time is coin, invest it; don't spend it.

Do You Know Your Numbers?

Wed, 25 May 2011 05:00:00 GMT

Saying "I don't know" to this question bodes trouble for a business owner. Successful businesses (aka businesses that make money for their owners) are developed using a profit-making financial model.

Do you know your financial model? Do you know how your business makes money? The financial plan for making money and being profitable should be developed before the business plan is written. After all, you would not want to go to the trouble to write a plan for a business idea that cannot make money.

Four elements are crucial for developing a sound financial business model.

First, what is the cost structure (expenses of the business)? Total costs consist of fixed costs and variable costs.

Fixed costs are the expenses that remain the same over a period of time (such the rent of space during a year). These expenses—sometimes called overhead—are consistent regardless of how much or how little business is transacted.

Variable costs, on the other hand, increase or decrease based on the amount of business activity (such as manufacturing, production, sales).

Next, what is the break-even: how much revenue must the business generate to pay expenses—both fixed and variable? Only past break-even is the business profitable. A business not generating enough revenue to reach break-even is losing money and creating debt.

Third, how many sales transactions are needed to generate the revenue for break-even and beyond? If the business is not generating that much revenue, does the business owner have the capital to sustain the business until it reaches that revenue point?

Last, what is the cash flow projection for the business? Cash flow is the pattern of revenue coming into the business and expenditures going out of the business and the resulting availability of cash for business needs (such as paying bills).

Once you know these metrics of your financial model, you are ready to formulate a business plan. Or, as the owner of an existing business, knowing these metrics prepares you to make informed decisions about growing your business.

If you have been in business for years and you don't yet know the answers to these four vital financial questions, don't worry.

It's never too late to start.

Your WHY of doing business

Wed, 11 May 2011 05:00:00 GMT

By Arnelle Adcock

A husband who was asked about the success of his 30-year marriage replied simply, “I keep showing up.”

Successful business owners like successful marriage partners keep “showing up.” However, the discipline of consistency and constancy in business would be way too tiring except for another vital ingredient—the WHY of being in business.

WHY did you start your business?

Work/Life Balance? Did you want to provide your family with a certain lifestyle? Have you achieved this goal? Do you get to enjoy what you provide for your family?

Money? Does your business provide you with financial security? Do you want more from your business than financial security? Do you want more money to be able to achieve other goals?

Recognition? Does your business give you the recognition you want?

Purpose and Passion? When you began your business, were you excited about what you were doing? Are you still excited?

Chances are you started your business with passion as a driving force in your decision. You pursued your professional passion with clear and compelling purpose. Such a direction requires acknowledging fear, doubt, anxiety, discomfort, and hesitation to move through it.

However, pursuing passion and purpose can sound so frivolous to others. Such a pursuit sounds unreasonable. You are perceived as borderline irresponsible and receive a fair amount of scrutiny and criticism. After all, why do you need to own a business? Why can’t you just have a job like everyone else?

On this side of the decision to own your business, you know that meaning matters. Finding the intersection between meaning and money, between passion and the paycheck is seemingly worth the risk and sacrifice that come from dreaming big and following your WHY.

Owning a business is not easy. If it were, everyone would do it. But, everyone doesn't. You do. You keep showing up . . . making a difference . . . and living your WHY.