Tom peters... 48 pieces of advice for small business

I came across this from Tom Peters..... wonderful advice and thoughts.... love them... I trust and hope that Tom Peters is pleased with having them republished on my blog....

Tom Peters
22 February 2009
Queenstown New Zealand

The Heart of Business Strategy: 48 Things That Matter

We usually think of business strategy as some sort of aspirational market positioning statement. Doubtless that’s part of it. But I believe that the number one “strategic strength” is excellence in execution and systemic relationships (i.e., with everyone we come in contact with). Hence I offer the following 48 pieces of advice in creating a winning strategic that is inherently sustainable*:

• “Thank you.” Minimum several times a day. Measure it.
• “Thank you” to everyone even peripherally involved in some activity—especially those “deep in the hierarchy.”
• Smile. Work on it.
• Apologize. Even if “they” are “mostly” to blame.
• Jump all over those who play the “blame game.”
• Hire enthusiasm…Low enthusiasm. No hire. Any job.
• Hire optimists. Everywhere. (“Positive outlook on life,” not mindless optimism.)
• Hiring: Would you like to go to lunch with him-her. 100% of jobs.
• Hire for good manners.
• Do not reject “trouble makers”—that is those who are uncomfortable with the status quo.
• Expose all would-be hires to something unexpected-weird. Observe their reaction.
• Overwhelm response to even the smallest screw-ups.
• Become a student of all you will meet with. Big time.
• Hang out with interesting new people. Measure it.
• Lunch with folks in other functions. Measure it.
• Listen. Hear. Become a serious student of listening-hearing.
• Work on everyone’s listening skills. Practice.
• Become a student of information extraction-interviewing.
• Become a student of presentation giving. Formal. Short and spontaneous.
• Incredible care in 1st line supervisor selection.
• World’s best training for 1st line supervisors.
• Construct small leadership opportunities for junior people within days of starting on the job.
• Insane care in all promotion decisions.
• Promote “people people” for all managerial jobs. Finance-logistics-R&D as much as, say, sales.
• Hire-promote for demonstrated curiosity. Check their past commitment to continuous learning.
• Small “d” diversity. Rich mixes for any and all teams.
• Hire women. Roughly 50% women on exec team.
• Exec team “looks like” customer population, actual and desired.
• Focus on creating products for and selling to women.
• Focus on creating products for and selling to boomers-geezers.
• Work on first and last impressions.
• Walls: display tomorrow’s aspirations, not yesterday’s accomplishments.
• Simplify systems. Constantly.
• Insist that almost all material be covered by a 1-page summary. Absolutely no longer.
• Practice decency.
• Add “We are thoughtful in all we do” to corporate values list.
• Number 1 force for customer loyalty, employee satisfaction.
• Make some form of employee growth (for all) a formal part of values set.
• Flowers.
• Celebrate “small wins.” Often. Perhaps a “small win of the day.”
• Manage your calendar religiously: Does it accurately reflect your espoused priorities?
• Use a “calendar friend” who’s not very friendly to help you with this.
• Review your calendar: Work assiduously and mercilessly on your “To don’ts.”—stuff that distracts.
• Bosses, especially near the top: Formally cultivate one advisor whose role is to tell you the truth.
• Commit to Excellence.
• Talk up Excellence.
• Put “Excellence in all we do” in the values set.
• Measure everyone on demonstrated commitment to Excellence

The world’s greatest business development tools revealed

Or Metrics that matter

Article by Roland Hanekroot of New Perspectives Business Coaching www.newperspectives.com.au

Amazon stocks some 11,000 titles in the category “Small Business Management”, and although I can’t profess to have read them all, I am reasonably sure that very few will give you this simple bit of advice:

Experimentation and measurement are the most powerful business management tools any business owner can ever employ.

Did your ever hear your dad/ grand father/ uncle utter these words:

“If a job’s worth doing it is worth doing it well…”

Mine did, but now I disagree (respectfully of course). Instead I make this statement:

"If a job is worth doing it is worth messing around with!”

Too often we feel stifled by the feeling that this or that problem is worth tackling if only we knew what THE answer was. We are afraid we won’t get it right, that it won’t work, we’ll fail….

And of course we don’t know THE answer…………..

Good news and bad news:

• The Bad news: …………..There is no answer!
• The Good news: ……..….There are lots of answers!
  

There are as many answers as there are businesses and business owners.

This is not to say that there aren’t a number of basic principles that apply to all businesses. There are important common principles of marketing or finance for example, but how those principles apply to you in your business is entirely dependent on the unique combination that is you and your business.

Somewhere in those 11000 books on Amazon you might find the answer to your particular problem appropriate for you and your business, although that is by no means guaranteed. Besides, if you have time to read even 1% of that library you don’t need to read the rest of this article, your business is already running the way it should.

A much more useful approach is to look at the issue, pull it apart into as many component parts as possible and ask yourself: I wonder what I could try next? That is experimentation. Look at an issue and say hmmm…I wonder….. Big change can come from little experiments, and if the experiment doesn’t work out…try something different.

The “But”
There is always a “But” and this article is no different, sorry to disillusion you. The “but” is this: Experimentation must be based on measurement, without relevant measurement, experimentation falls flat on its face, is frustrating for everyone and costs lost of money.

You can’t manage what you don’t measure.

It is the continual cycle of measurement, experimentation, more measurement and more experimentation that will have the greatest impact on the sustainable growth of your business.

Case in point
I am going to take you through a real world example that will demonstrate what I mean. The example comes from a client of mine who is an electrician. I have tried to reduce the story down to the bare essentials, and obviously it demonstrates a principle only. How you translate this principle into something that works for you and your business I can’t say from here. My hope is that you will let it stew in your brain for a bit and ask yourself: “I wonder how I can experiment with that principle in my business?”

My client has a number of vans on the road, with a tradesman and apprentice in each van. One of his burning issues was the amount of (un-chargeable) time that his teams spent running to the local suppliers each week to pick up bits and pieces they needed for each job. The vans normally carried some stock (mostly stuff left over from previous jobs) but an enormous amount of time each week was lost because the vans were on the road, shopping. Over the years he had experimented with different ideas, but the issue persisted and he really didn’t know how to make headway with it.

This is what we started working on:
First we set up a way to measure how much time each team spent travelling to buy the bits and pieces, day by day and team by team.

We learnt two things:

• On average he lost about 11 billable hours per week for all teams combined to “shopping time”
• One of the teams spent significantly less time shopping than the other three.
  

Armed with that information we decided to find out what was different for this team.


We found two differences:

• Their van was tidier than the other vans,
• They kept rough diary notes about some of the items they were running low on.
  

Clearly here was the beginning of a solution worth experimenting with.


We also decided to measure 2 other things:

• First we measured what the top 100 most common items were that were used on jobs.
• Second we worked out that 85% of jobs would require nothing else than those top 100 items.

This gave us some solid base lines to work from.

Stock lists
Putting together all this information we decided to make the top 100 items the standard inventory of each van. At the completion of each job, the team notes on a standard stock list how many of each item they used on that job. When they next pass one of the regular suppliers, they replace everything on the inventory list in the exact same quantity that they have used (and noted on the list) since the last time they went to a shop. And then they start a new list.

Now he is measuring again.

The initial impact is significant; he has reduced the non-chargeable shopping time by 50% across the board. There is further work to do; the goal is to have no more un-chargeable shopping time at all, by the end of the current financial year.

Linda Evangelista
For now my client is able to take on an average of 3 extra jobs per week with the same resources. That equates to approximately $25,000 extra profit per year.

Apparently even Linda Evangelista would get out of bed for that!

One of the benefits of working with a business coach is that you will be encouraged time and again to ask yourself that question: “I wonder what would happen if……”

Further reading:

• “The E-Myth series” by Michael Gerber
• “Re-Imagine” by Tom Peters
• “The Solutions Focus” By Paul Jackson and Mark McKergow
• “Solutions Focus Working” by Mark McKergow and Jenny Clarke
• “The One Minute Manager series” by Ken Blanchard et al

Business Owners and Schizophrenia

The case for Multiple Personality

Disorder in business

Or how to be the Business Owner

By Roland Hanekroot, New Perspectives Business Coaching http://www.newperspectives.com.au/

Every business owner I have ever worked with has at some stage been stumped by a variation of the chicken or egg dilemma:

What comes first?

• I would like to spend more time developing my business, but I don’t know if I can afford to lose the time.
• I would like to employ extra staff, but I don’t know if I can afford the time to train them.
• I would like to spend more time generating leads and business, but if I am successful at that I don’t know if I will be able to handle the extra work.
• I would like to employ extra staff, but I don’t know if my cash flow will be able to handle it.
• I would like to develop my business processes and systems to be able to handle a lot more work, but maybe I should get that extra work first.
• I would like to employ extra staff, but I don’t know if I will still have enough work for them in 3 months.
• Etc.

So what really comes first?
First comes a realisation. It is the realisation that owning a business involves a particular type of schizophrenia or multiple personality disorder; you have to be three different people at once,

Michael Gerber in his E-Myth books refers to them as:

1. The Technician (Who does the technical work, be it that of a carpenter, a salesperson or a lawyer)
2. The manager (Who does the day to day management of the business: admin, finance, sales, managing people and processes etc)
3. The Entrepreneur, or the business owner (Who does the business building work)

Suffering from schizophrenia is something you would not wish on your worst enemy and what is more, if you are intent on owning a business there is no cure.
You are simply going to have to accept the fact that all three personalities demand their time and space, equally.

Most business owners (including myself) know how and when to be the technician, how to do the technical work (the work of the business), that is how we got started, and who we have always been. Most of us also know something about being the manager and with a greater or lesser degree of efficiency we carry out the work of the manager, maybe a bit later than we’d like, or just pushing the deadlines. Often we feel this manager person gnawing at the back of our minds when we are being the technician on a daily basis, but generally we give him or her the required time and space, otherwise our businesses would have gone down the toilet ages ago.

The entrepreneur

Not many of us know how and when to be that third person though. We really just put her in the too hard basket most of the time. We can feel her fighting to get out of that basket sometimes, but there just is no time this week; that quote must be finished first and project “X” has fallen behind, and we are already a week late with our BAS return etc. So we keep the entrepreneur in her basket, put the lid on the basket, and sit on it for good measure. Maybe we let her out at night sometimes, or on a weekend every now and then, but certainly not during business hours when we have to make money and do the stuff we do, and do it and do it and do it….

Yet, the contradiction is that the most important work that you and only you as the business owner can ever do is the business building work.

The work of the business owner is not the work of the business. The work of the business owner is not the technical work, it is not the administration, and nor is it the sales or any of the other things that the business needs to carry out on a day to day basis.

The work of the business owner is the creative work of developing the business; it is imagining what you want the business to look like in 6 months, a year, 5 years. It is thinking time, it is planning; it is looking into the future and deciding how it will look. It is developing the strategies, the processes, the systems to make your vision a reality. It is creating the methods to measure the effectiveness of your systems and processes, it is learning and innovating, and deciding what the key indicators for the health of your business are, and where to get them when you need them.

This is the work that you and you alone are accountable and responsible for. Only by doing the Business Building work consistently as a matter of priority, will you be able to build your business into the thing you set out to create when you started it.

The challenge

So here is my challenge to you: As a first little step, beginning modestly, starting this week, with the new financial year coming up soon. How would it be to block out 2 hours a week from your diary, every week? Set in stone, come hell or high water, you are no longer available for clients, suppliers, meetings, employees, administration, phone calls, emails, or anything else. This will be your business building time, your thinking time, and your creative time.

You might find it confronting and feel guilty at first to block a slab of time out of your diary for this work, and on a workday as well! What if a client has an urgent issue for example? Well, I would like you to look at it this way; if your clients want to talk to you urgently at 3.00 am on the Sunday morning of your daughters first birthday, while on a skiing holiday with your family, would you take the call and have a meeting with them at that time? (If you answered “yes” you have greater issues than I can deal with in this article).

Build a bridge

So as my girlfriend says: Build a bridge…. (And get over it)…. simple as that. This weekly business building time is right up there with sleeping and holidays and your family. If you are not building your business, you are not building anything. To quote Michael Gerber again: “You have created a job for yourself with a fool for a boss”.

When you do start to step into the personality of the Business Owner you will find that this is one of the rare occasions when suffering from Schizophrenia is highly rewarding, and you will start to find the solutions to those typical business owners’ dilemmas.

One of the benefits of engaging a business coach is that the realities of being a business owner will become inescapable and the coach will help you integrate this personality and the work that belongs to him into your business life.

Further reading:

• “The E-Myth” series (E-Myth Revisited, E-Myth Mastery, E-Myth contractor, E-Myth manager, E-Myth physician) by Michael Gerber
• “Maverick” by Ricardo Semmler
• “It is not the big that eat the small, but the fast that eat the slow” by Jason Jennings and Laurence Haughton
• “The effective executive” by Peter Drucker