Veterans Day

Today is designated as Veterans Day in the United States and Remembrance Day in Canada. In other countries it is known as Armistice Day. It was originally set aside to mark the end of the Great War (World War I) on the eleventh minute of the eleventh hour of the eleventh day of the eleventh month. This was to be the last great war. The fact that there is now a I behind the name and there has been a WWII as well as many other major conflicts, says that we are not very effective in learning from our past mistakes.

That isn’t surprising since for most people there is no memory of the war, let alone the reason for the designation of the day. Only a few mark the event or the time. While some have a holiday on this day, they don’t use it in memory but rather as a vacation day. As time has passed, we give less and less attention to the memories. When I was a youth in Canada, school stopped for an hour and all the students gathered around the flag pole, where the flag flew at half mast, for a ceremony to honor those who had fought and those who had died for us. There were hymns, songs, readings and poems and it was meaningful. We wore “poppies” that were sold by the Veterans and the bright red made a sharp contrast to the earth tones of the clothes. Remembrance Day was a time for remembering!

Today, it appears that a few veterans get together and remember. Families of the fallen remember and the rest of us just pass by. We just won’t learn and so we are destined to repeat and we do.

You may very well ask what has this got to do with business? The answer is simple. If businesses don’t stop and reflect on what has happened, learn from it and reformulate their plans, they too will be destined to repeat the failures.

As turnaround experts, we see this far too frequently. Executives continue blindly on, doing the same activities over and over and expecting better results. Insanity, right?

Let me encourage all of you to stop today and reflect. Have a moment of silence for the fallen and those who have fought for you and your freedom.

Have another moment of silence for you. Reflect on your life. Reflect on your business. Reflect on what you could be doing differently to get more success. Reflect on the successes and what can bring you more successes.

To the fallen, thank you!

John

John Maver
President
Maver Management Group
(925) 648-7561
Maver Management

Turnaround Consulting - Turning an Organization from Mediocre to Exceptional

How good is your company, organization or division?

The answer is very important because the companies that will come out of the recession and do well are going to be able to answer this in positive terms. Book stores and office shelves are full of books that chronicle the practices of high performing organizations. This list includes “Built to Last,” “The Breakthrough Company,” and “Good to Great.” The problem is that most companies don’t last, don’t breakthrough and don’t make the leap from “okay to fair” let alone “good to great” because these organizations maintain a focus and culture that insures mediocrity.

A colleague, Sandy McMahon who runs Renaissance Executive Forums of Silicon Valley, recently wrote an article about why organizations stay mediocre and never reach their full potential. What stands in the way is “a culture of status quo.” This is a very important concept and yet so simple. As a result of it, organizations do things that will guarantee they will remain mediocre. That may be happening, at least to some extent, in your company and you will want to turn that around.

However, there are some ways that can help you turn mediocre into exceptional. With proper guidance, most companies are capable of achieving vastly more than their current results. Here is my advice.

1 Create and share a single, simple strategic focus. As we have written often, many companies have no strategic plan and if you don’t know where you are going, no road will lead you there. Too many companies have a strategic focus to improve profits. There is no argument that profit is important - it is! In fact, mediocre companies focus too much on revenue and not enough on profit. But what the mediocre companies fail to do is to energize and rally employees, vendors and clients around a short and focused reason to support the company for the long haul. Work with your team and identify a simple basis that will cause all of your organization and stakeholders to work for a goal that is meaningful to them.

2 Provide the “Big Picture” to the organization and not only to the top. In mediocre companies, there is a belief that the rest of the organization are not capable of thinking independently but need to be told what and when to do something. Leaders practice the “mushroom theory of management”, keeping employees in the dark, under a layer of fertilizer. The slave ship scene from the movie “Ben Hur” says it all: “Row well and live.” Now it has been updated to “when we want you to know something we will tell you.” This undermines the initiative of the rest of the organization and does not take full advantage of their potential contribution. Share the plan with them and turn them loose within guidelines. They will dramatically add to the acceleration potential.

3 Expand from single minded top down management. Mediocre companies believe ideas for improvement come only from the top. Ideas from anyone else are dismissed because they come from people who don’t see the “big picture.” While many people in an organization can say no to initiatives, changes and improvements, there is only one person, the one at the top, who can say yes. With every decision resting on just one or perhaps two at the top, it is clear that no one else really has any authority. Both business and employee participation stagnate. Driving down decision making, once the plan is shared, enables all to participate. Progress and profit driving ideas are accelerated.

4 Hire “A”s not “B” and “C” players. Many hiring managers shun bringing in new people with more education, more experience and impressive backgrounds simply because new employees of this caliber are threatening to them. As a result, the organization misses out on the best people and it is always the people that make the difference in an organization. Go for the best and let them teach you too.

The caliber of the organization is also hindered by ignoring training and education. The mediocre company believes that it knows everything it needs to survive, and sees no need for continuing education for anyone. Our surveys of such companies show a consistent lack of development initiatives for employees. The only way to improve is to start with outstanding employees and feed them education and training so that they get even better. Check out the top companies and see their hiring and training principles.

5 Encourage people to step up to new responsibilities and initiatives. In a culture that fosters the status quo and believes “this is the way we have always done it,” those who step up are agents of change and systematically hindered and eventually forced out. If a company follows the sharing of the plan and the decision making with high quality employees, the result will be a dramatic change from the status quo and top management will be very pleased with the results.

There are two corollaries to the reluctance to step up. They are:
a) Nodding heads. In meetings, only a few say anything of substance. The rest simply nod their heads in compliance. There is fear about risking their job by saying anything that could be construed as being disloyal. There is no serious discussion on how to have a better business. Employees must be encouraged to participate and share their ideas. Effective managers operate as gatekeepers in leading their meetings so that all participate and feel comfortable doing so.

b) Resistance to change. This virus, manifested in meetings filled with people who simply nod their heads, moves to the department level once the meeting ends. Managers will take no risks and make no moves without written direction. This is never possible in any organization that hopes to compete in the current fast paced world. Managers must have clear objectives and guidelines within which they can use their own judgment and decision making for improvement. They must be supported and held accountable to make those changes.

6 Institute for pay-for-performance. Mediocre firms believe that if they offer a nice place to work with a steady paycheck and solid benefits, they are serving all the needs of those who work there. This simply is not true! The best people strive for increased responsibility and company and personal progress. They resent having lower performers reap any rewards from the contribution of the top performers. They will look elsewhere for employment and continue the circle that causes mediocre companies to stay mediocre. Set some targets that stretch your employees. Give them the training they need and the motivation to reach the targets. Then watch the acceleration.

The mediocre organizations are easy to spot as well. You won’t find anyone coming in early or staying late because there is no benefit to doing so - no reward for success or the effort that goes with it. Also most often these days, they have signs that say “Out of Business”.

You can turn your company from mediocre to exceptional with some help. Contact us. We have the experience and have helped turn around many companies. You will like working with us.

Thanks.

John

John Maver
President
Maver Management Group
(925) 648-7561
Maver Management

Chief Operating Officer (COO) Core Competencies

There are many books and articles written about CEOs, their responsibilities and what they need to do to be successful. We have published a number of these articles here based on personal experience as a CEO. However, despite the critical role that the Chief Operating Officer (COO) plays in company operation, there are very few articles written about them. As Director of the East Bay Northern California Chapter of the COO Business Forum, I have become intimately acquainted with COOs who are very effective in what they do. This purpose of this article is share some of the insights that have been gleaned from interactions with COOs and some of the articles that have been found.

The COO position entails running the day-to-day business operations of the company, freeing up the CEO to fulfill responsibilities as specified by the Board of Directors. In functional respects, the COO will be a vital member of the CEOs core staff, working with the CEO to develop and implement Company’s long-term strategy. The COO will also interact extensively with department heads to provide leadership and direction for all business activities and will be responsible for all major operational decisions. In many companies, the COO is responsible for making the numbers via the business units.

CORE COMPETENCIES
1. Vision: With the CEO, the COO leads strategic, long-term planning, vision and goal-setting using the ability to “look around corners” to anticipate future opportunities or problems. They take strategic and pre-emptive action.

2. Develop and Leverage Relationships: Possesses exceptional relationship-building and interpersonal skills, since diverse functions report to them and the smooth interworking is critical. High emotional and social intelligence makes the COO function more effectively.

3. Communication: Communicates passionately, effectively, and persuasively across a diverse set of stakeholders. The COO must also be able to create processes and structures to facilitate effective communication both internally and externally.

4. Building and Managing Teams: Inspires, motivates, coaches, and develops others. Listens well and continuously learns and seeks advice and feedback from others.

5. Results Oriented: Relentlessly pursues improvement and results. Flexible, with a strong work ethic and an entrepreneurial spirit to accommodate high level of responsibility and multiple priorities. Creates a culture of mutual accountability.

6. Analytical Skill: Analyzes and problem solves at highly developed level. Outstanding organizational skills and high attention to detail are critical to success.

7 Management style: Demonstrates an ability to manage conflict, build consensus, and facilitate problem-solving and collaboration among various parties.

ESSENTIAL DUTIES AND RESPONSIBILITIES:
• Advise the CEO on strategic business development and key corporate planning issues and make recommendations on major business decisions.
• General oversight of all operational and business functions, including manufacturing, research and development and regulatory affairs administration and operations.
• Keep the CEO informed about business activities, potential threats, opportunities, and recommended actions.
• Follow-up on decisions made in management meetings and ensure proper execution.
• Take charge in high-priority crises of an operational nature.
• Shape and develop department strategy and organization. Ensure proper staffing and report structure within departments. Help determine resource allocation among departments. Facilitate resolution of issues between departments.
• Encourage managers to evaluate and take actions that are consistent with company’s overall strategy which will lead to high performance. Challenge basic assumptions underlying each department’s operation. Act as a sounding board for department managers.
• Set performance goals which are tailored to each department. Develop operational goals for each department which are aggressive and tied to long-term goals.
• Monitor department performance against performance goals to ensure that progress is being made and collective action, if necessary, is taken. Ensure adherence to annual budgets.
• Lead program to build organizational capabilities. Develop a group of well-rounded, capable managers in each department.
• Institute processes that facilitate effective and efficient work flow.
• Travel, as required, to customer locations, supplier facilities and other executive matters.

The COO's job is quite extensive and good ones make the CEO's life much more pleasant and the company much more profitable.

Thanks

John

John Maver
President
Maver Management Group
(925) 648-7561
Maver Management

Turnaround Cost-Cutting Techniques

While it appears that the economy is starting to show signs of life, we are a long way from health. Many businesses are struggling and we are providing turnaround expertise. Some will take the advice and be saved. Others may not make it. More than ever, cash is king. Businesses don't go bust, they simply run out of cash. We have written before about cash flow and its importance. Cost cutting has to be effectively married with good planning and effective investment in revenue.

Here are turnaround, cost cutting techniques for you to employ as you bring your business back to health.

1 Start with the plan.
Review your business plan and make sure that it is concise and focused. Build on your core competencies and be ruthless in insuring that only the projects and resourcing in the plan are being pursued. Do not allow business plan creep.

2. Cut cost from the top down.
Starting your cost saving strategies with directors and above first is imperative. This is much more than eliminating bonuses or perks. It is eliminating directors. Each senior person brings with them a set of projects and priorities that need to be resourced if the director is going to do their job. Take a judicious look at what actually has to be done and how many senior staffers are required. Each one removed will take with it significant other savings. But make certain that the cuts follow the plan above. These steps are tough but it sends the message loud and clear to the rest of the company.

3. Get staff buy in.
Cost-cutting is unpopular with staff at all levels. By now, they have been faced with it, not only within your company but with family, friends and others that they know in other companies. There can not be a series of continuing cuts. Follow your plan and make this one last cut and tell the employees that it is the last one. Get them to participate knowing that it can mean solid employment for all who remain. Treat those that must leave with respect.

4. Improve your forecasting accuracy.
Being able to accurately forecast sales by unit keeps inventory levels low and cash free. Many companies forget that as business improves it requires inventory increases to satisfy the new demand and that will tie up cash. Accurate forecasting also enables you to be able to budget for revenue generating spending. This is critical in the turnaround period.

5. Reduce Accounts Receivable.
You are not a bank. At least most of you are not banks and therefore having your customers using your money in the form of unpaid invoices for products in their hands is unacceptable. They are in effect using your cash! Do not hesitate to ask for your money. Clearly, this may be awkward at times but persistence and creativity can pay off. You don’t want to lose the customer but you do want to lose the debt. Get your cash.

6. Cut the Cost of Debt.
Your company may have been forced to extend its debt load during this recession. Now is the time to review it and determine how you might reduce the payments and conserve cash. Credit is still very tight but it is available. Go talk to your banker.

7. Capitalize on technology.
Be open with your clients and establish if your attendance in person is really required. Many companies are using video conferencing or webcams for both client meetings and internal work. Not only does this save travel expenses, it increases the productive hours of each employee.

8. Upgrade processes.
Many companies are still doing business in the manner that they did pre the recession. That won’t work any more. Review your basic processes and streamline them. Eliminate ones that no longer bring a high value to the organization. You will be amazed at the “deadwood” that exists. Automate wherever possible. Better business and better cash flow will result.

9. Outsource.
Outsource when it is not a core competency. There are many other companies in various parts of the world that have the core expertise and can do it faster and cheaper than you can internally. Look for these opportunities and make them part of the business plan.

10. Increase use of consultants.
Many articles advise companies to cut or eliminate consultants, believing that they can be a false economy. This is not necessarily true. We recommend bringing in consultants to do a specific job and capitalizing on their expertise. They can get things done faster and less expensively and make a positive impact on your cash flow. Don’t go for the big names with a lot of overhead. Find the smaller, less expensive but well experienced consultants that fit your budget.

This is turnaround time for companies. The wise will survive and will apply these cost cutting techniques effectively.

Let us know how we can help you improve your cash flow and bring your company to health.

Thanks.

John



John Maver
President
Maver Management Group
(925) 648-7561
Maver Management

Cost Cutting - Scalpel or Chainsaw for Turnaround Success?

Is your company still in the cost cutting mode? I don’t mean are you still concerned about controlling costs, since that should be an ongoing mantra in good times as well as bad. I mean, are you focused on cutting costs to continue to survive?

By now you will have cut out the obvious excesses and are down to the hard choices. What will you use for turnaround success, the chainsaw method or the scalpel?

The chainsaw method sees this as a relatively simple solution to a tough problem. Is there a plan? Yes! Generally it is a simple one. Either take a percentage of cost out of all functions or look at the largest expenditures and cut them. Large “chunks” of cost are cut away and the rest stand as it may. In terms of a quick fix, this method works. Costs are very quickly reduced. However, generally there are severe consequences for both the short term and long term.

In the short term, there is chaos since the cuts have been done without a fully developed plan. What is left may not be able to function effectively or at all due to the elements that have been removed. Employees with specific skills have been lost and others with lesser or without those skills are required to take their place. Processes will not function efficiently. In the long term, the company may have cut the resources and programs that are going to be required to turn the company around and enable it to survive in the upturn. Once the people or the initiatives are lost, regaining them will be very difficult. It is also a major challenge to ignite the organization to achieve and repair the damage to the culture. If your company has used the chainsaw method, you will be able to add many other consequences to the list from your personal experience.

The scalpel method starts with the business plan which reflects the current pressures from the economy but also capitalizes on the core competencies and the requirements for longer term success. The total cost reduction target is identified and employees throughout the organization participate in identifying areas that can be cut, postponed or done more cost effectively to reach that target. In doing this, the consequences of how the company will function post the cuts are reviewed and plans made. This much more orderly cost cutting process not only reaches the targets in the short term, it also sets the company up for success longer term.

Both of these methods benefit from expert assistance. The chainsaw method needs analysis and solutions as to how to recover from the damage done in getting to the lower cost level. The scalpel method benefits from help in the planning and implementation process.


As a turnaround expert, I have worked with companies and both methods. In the chainsaw method, I am brought in after the fact to resurrect the company and help breathe life back into it. Additional help is generally required to execute the plans, since key company people have either been laid off or quit. This can be expensive. In the scalpel method, I am brought into analyze the challenges and the opportunities in reaching the cost saving goals and then create and execute the business plan that delivers. This is a much more productive exercise.

If your company has used the chainsaw method, contact me. I can help you pull out of the consequences. If your company still requires additional cost savings, contact me and I can help you use your scalpel.

Thanks,

John


John Maver
President
Maver Management Group
(925) 648-7561
Maver Management

Company Turnaround – Not a Children’s Story

Many of us remember the fairy tale of the Little Red Hen. This story is known not only to our USA readers but many of you around the world, who are reading these articles. Little Red Hen lived on a farm with her five chicks. On this farm, there also lived a dog, a cat and a duck, along with a number of other animals. Red found some seeds and then asked for help in planting, harvesting, grinding and baking but got the response “Not I” from all. However, all were around to eat the bread when it came out of the oven. They didn’t want to do the work but to share in the rewards.

To some extent, that is the way it used to be in business too. Many employees were focused on their own department and responsibilities and built larger and larger organizations. Teamwork and extended productivity were only a subject for meetings and discussion and not actually practiced. However, the employees were there to share in the bonuses and promotions as the business grew.

NO LONGER. Turnaround for companies isn’t a children’s’ story but the basic idea still works.

Here is how the story could go today and why bringing in an expert on turnaround is such a smart idea before it is too late and you are out of business. It is told in the form of a children’s story to make the point without setting up defensiveness in the readers.

The financial pressures on the farm (this could be any business, but for purposes of this story it is a farm) were getting more and more severe. Prices of eggs, the output of the farm, had risen but were now at a level that further increases were not possible. Demand was falling. Profitability plunged. Much of the days’ activities in all departments centered on what the farm was going to do. There were going to be severe budget cutbacks. Some would have to lose their jobs and.

The farmer, who was the CEO of the farm, had pressures from all around him. He had a lot of ideas given by the Board of Directors, the news, the executives and even his wife. All the ideas involved slashing costs in one way or another. In an attempt to meet the profit targets, which hadn’t changed despite the worsening economy, since there were shareholders and the bank and the other creditors and etc, the CEO give direction to his executives to reduce spending by 15% across the board and start laying off employees.

While this quickly cut some costs, the result wasn’t what had been expected as other costs had to increase to compensate for some of the lost activities. It also caused chaos in the company since there was no overall plan. Almost every process was affected in some way and productivity slowed dramatically.

That led to the need for further cuts in order to make the now reduced targets. The analysts on Wall Street had pulled their investments so the farm’s stock price plunged. Not only were bonuses eliminated, pay cuts were initiated. The layoffs continued and many seasoned farm employees were let go. As you would expect, revenue fell again and again. Soon cash flow dried up. Does this sound familiar as a real life story?

Since this is a fairy tale and not real life, there is a happy ending to the story. In real life, most of these companies would be put out of business.

The Little Red Hen convinced the farmer to bring in a turnaround expert. Not one of those expensive large consulting firms but one that had the expertise and a track record of success. The turnaround expert quickly analyzed the situation, pulled the CEO and the executive team together and led them in creating a business plan that was based on their core competencies and focused the remaining resources on the greatest opportunities.

Unlike in the earlier story where no one would help, here everyone had a responsibility and accountability for the results in their section. The plans were greeted with enthusiasm and soon the business had turned around and like in the children’s stories, all lived happily ever after. Well, perhaps not happily ever after since even in children’s stories there is the realism. If you don’t keep executing the right plan, you can fall back into trouble

Please do not think that turnaround work and plan was that simple to define and execute. It never is but with the right guidance and expertise your company can be turned around and you too can deliver a happier ending. The key is to get the right plan and get some help to turn the business around now. If you wait it will be too late.

If you don’t already have a turnaround expert, contact us and let us help. We have saved a number of “farms” and businesses too.

Thanks.

John


John Maver
President
Maver Management Group
(925) 648-7561
Maver Management

Turnaround – Are going to get your share of the recovery?

The economy is beginning to turn upward and while there are still major obstacles to its health, there are positive signs and consumer confidence is starting to return.

The all important question for you is “will you be participating?”

Will your company be participating? Have you positioned yourself and your company to get a share of the upturn or will the potential business pass you by?

Here are some questions to ask yourself to see if you are ready:

1. Have we focused solely on cost cutting in order to survive and if so have we actually undermined the opportunity to recover? Many answer this question quickly with a no and then upon further review find they are incorrect and are in trouble.

2. Have we maintained the strength of our core competencies through this downturn? Do we actually know, outside of the executive team, what our core competencies are?

3. Do we have the cash availability to fund the inventory increases that are going to be needed as we start to ramp up production?

4. Do we have the cash reserves to cover the short term increase in accounts receivable that will happen with the new sales? This recognizes that even though some customers and clients will pay within terms, we still will have increased AR. It also recognizes that some clients are going to be cash strapped themselves until they get their cash flow flowing and will delay payment to us and other suppliers.

5. Do we have relevant business goals that make sense in today’s environment?

6. Have we kept the right talent in our human capital to succeed? What is missing and where and when will we get it?

7. Have we upgraded to take advantage of the large, very qualified talent pool that is available and their willingness to accept more modest compensation?

8. Do we have a business plan that is actionable and known throughout the organization?

9. Are our business goals clear and communicated to all employees so that they can participate in driving the business ahead/

10. Have we identified the key issues facing the company in order to participate in the economic upturn and do we have a specific plan in place to address each issue?

11. Is our business progress starting to trend up and can we see means of accelerating our progress?

12. Do we have a clear customer focus across the organization? Are we committed to customer satisfaction and possibly delight? Customers are far more choosy now.

If you can answer all of these questions in the affirmative and have the facts to back them up then you are ready to take advantage of the prospective upturn and will be in a position of strength. If you have answered some or all of the questions in the negative, you may be in a great deal of trouble and need help.

Contact us and let us help you. We have helped many others be ready to get more than their fair share of the business to come.

Thanks

John


John Maver
President
Maver Management Group
(925) 648-7561
Maver Management

Turnaround Plans - Mission and Vision Statements

Many companies undertake turnaround execution without an in-depth, thought-out plan. They start with the realization that they have to cut costs to survive and they do so either aggressively or worse, tentatively. Tentative cost cutting just prolongs the process and speeds the downhill slide to out of business. But both are detrimental to the company’s health.

We write often about having a plan. We also recommend that in the development of that plan, companies start with a review of their Mission and Vision Statements. This is forgotten by 91% of companies in their turnaround activities according to recent studies. Yet this is the guiding star for direction setting and use in creating the strategic business plan that will successfully direct the turnaround efforts, as well as the rise again, once the economy improves.

The Mission Statement is a brief statement of the purpose of an organization or company. It outlines the organization's broad reason for existing; what it does and for whom. It tells you what the company is today. A mission statement should say who you are, what you do, what you stand for and why you do it. It is not a slogan, goal, business plan or public relations piece.

Mission Statement examples:
• "Provide society with superior products and services by developing innovations and solutions that improve the quality of life and satisfy customer needs and to provide employees with meaningful work and advancement opportunities and investors with a superior rate of return." - Merck
• "To enable people and businesses throughout the world to realize their full potential." - Microsoft
• "Organize the world's information and make it universally accessible and useful." - Google

The Vision Statement outlines what a company wants to be, where the organization hopes to go and it provides clear decision-making criteria. It concentrates on the future. It is a source of inspiration; its dream. The best ones are direct and powerful. Try to relay somewhere in your statement that you understand the future of your business depends on delivering increasing value and quality to your customers, accounts and clients. This delivers a clear message of your priorities.

Vision Statement examples:
• “To experience the emotion of competition, winning and crushing competitors.” - Nike
• “To make people happy.” – Walt Disney
• “To give ordinary folk the chance to buy the same things as rich people.” – Wal-Mart
• “To solve unsolved problems innovatively.” – 3M

In today’s world, many ask about time frames for both of these statements particularly in turnaround situations. The answer is that the statements can hold true for many years and continue to provide guidance. Clearly, the plans that will flow from these statements have to be adjusted on a much shorter time frame to reflect current opportunities and challenges.

Why are these important?

First, they set the direction. If you don’t know where you are going, any path will take you there. Turnarounds are about focus, - focus on direction and focus on plan elements and resource utilization. These statements provide the guidance.

Second, despite the well publized loss of employee and company loyalty in the market today, people are not motivated by dollars alone. They want to work in organizations that inspire them and cause them to feel good about what they do at the end of the day. These statements should provide inspiration and motivation.

Third, it keeps the company grounded in values and not every day exigencies. It will make your life simpler and will help keep away the firefighting.

If you do not have Mission and Vision Statements for your company or are not using them in your turnaround efforts, let us know. We can help you.

Thanks

John


John Maver
President
Maver Management Group
(925) 648-7561
Maver Management

Turnaround Management – 11 Tips for Creating the Plan

In all of the articles we have written here, we have insisted that companies start with a plan so that they know where they are going and have a focused means of getting there. Just cutting costs isn’t going to turn a company around. There has to be a comprehensive plan. The plan doesn’t have to be complex. In fact, we recommend that it be relatively simple so that it can be easily understood and followed.

Here are 11 recommendations to make the planning successful:
1. Start with a clear, well-understood direction from the CEO. The process needs a champion and if not the CEO, there has to be another “C” level executive that will be responsible.
2. Do some research before the meetings. Sound information is required to make sound decisions in your meetings. Failures generally come from relying on bad or no information. Your SWOT analysis should provide information about your external environment as well as your internal operations. Do some benchmarking to determine the relevance of your strengths and weaknesses.
3. Don’t assume everyone thinks like you. Some like big picture visioning. Some like more concrete. Make sure that all types are handled and value the diversity. The key is to insure that all are working from the same set of data that you collected in point #2.
4. Get key players involved from the start. Spread the word to others in the organization. The plan affects everyone so let them know what is happening and what they can expect.
5. Use an experienced facilitator. Yes you can lead meetings too but this enables you to be fully engaged in the process and have an expert who can direct and guide you to do all the right things to get to the right plan.
6. DO NOT ignore the elephant in the room. If there is a large issue facing the company or within the group, forging ahead will cause disaster. Make sure that you surface the issue and allow all points of view to be heard before you solve it. Then proceed with the strategic plan.
7. Focus. Identify the top 5 strategic issues. There are generally only 4 or 5 things that are going to make a significant difference to the success of the company. In turnaround time there may be even fewer. Find them and concentrate on them. The rest will take care of themselves or will drop away as unimportant. Delete the fluff – less is more. Too many pages doom the plan to be put up on the shelf and never used.
8. Get out of the office. It doesn’t have to be at a resort. Get off site and shut off phones and e-mails. There is a need for focus in the mind as well as focus in the plan.
9. Use a scorecard or dashboard to monitor progress. Keep it simple and make changes to the plan specifics based on the measures you are tracking. This will keep you on course.
10. Executing the plan. Start implementing immediately because no plan is ever complete. Break it down into realistic chunks. Get some early wins and celebrate them. This will give the plan credence and traction.
11. Assign responsibility for each element of the plan and make that individual accountable. Provide them with the support and resources they need to do the job right.

If you follow these suggestions, you too can have a successful turnaround plan that can get your company profitable and keep it profitable. Let me know how I can help.

Thanks

John

John Maver
President
Maver Management Group
(925) 648-7561
Maver Management

Turnaround Management – Where did all the heroes go?

Many companies, in fact most companies, are struggling in the economic turmoil to find a way to turn the business around. They have cut the costs. Now what is next? They are left with chaos, confusion and cost ineffectiveness in most cases. How to get out of it? Where will they find that hero to save them?

Historically they would look for examples of leadership in other companies, industries or even non business. We had baseball heroes that would pitch brilliantly, shaking off the troubled start. Or hitters that would follow several strike outs with a home run to win the game. Or quarterbacks who would get up from being sacked to throw several touchdown passes. Or music stars who would rise from troubled childhoods to sing platinum album songs. Or movie stars who finally land the breakthrough part. Or even commercial icons like The Pillsbury Doughboy or Mr. Clean who stood for goodness.

In business, there were the business leaders who stood tall among all the rest and took their companies to market leadership and great profitability that was shared with all shareholders. Or politicians who had good values and we followed them despite party lines.

These were the heroes to whom we looked and got inspiration and guidance.

Where are these people now? The news is full of athletes who are breaking the law, musicians and actors who are on drugs or can not sustain a marriage for more than a few months. Some business leaders are taking outrageous bonuses when they are laying off people at the same time. And the politicians are generally despicable. What week goes by without some problem from one of our elected representatives?

Who will lead our companies out of this mess?

The answer is YOU!

You have to step up and lead your company out of the financial problems. Who else is there to do it? If you are the CEO, COO or any C level executive, it is up to you.

You may very well ask “How am I going to do that – lead the company out of this mess. We have already cut all we can cut.”

The answer is look around and find some guidance. The many articles on this site can be a start to help you develop the right plan. Invest in some consulting help. It isn’t an expense because the right consulting will pay for itself. Find those heroes who can provide the motivation and direction. They are still there. You just have to look for them. Let them into your business life and let them help you win.

If you don’t have a “hero” consultant already in mind, contact me. I can help you to turn your business around. I have solutions that stick to get you profitable and keep you profitable.

There are heroes around and you can be one of them.

Thanks

John


John Maver
President
Maver Management Group
(925) 648-7561
Maver Management

Turnaround Issues - Why Marketing Materials Fail

A friend of mine Lewis Green has an excellent blog that covers a wide variety of issues, many having to do with communication in one form or another. Occasionally, we comment and build upon each other’s posts. Recently, Lewis posted a message about “Why Marketing Materials Fail”. It is excellent and I wanted to share it here as one of the issues I see in turning around companies to get them profitable and keep them profitable. Clearly companies want to get all they are able from their investment of scare dollars in revenue building.

This is what Lewis wrote:

When I see a poorly designed marketing piece, usually it fails to do the following, which, to look at another way, are the very things we should avoid.
1. It talks too much about the product or service.
2. It is written from the company's perspective instead of the buyer's.
3. It is too long.
4. It is poorly designed.
5. It identifies functions instead of buyer benefits.
6. It doesn't tell me the two or three reasons why I should purchase the product or service (WIFM).
7. It fails the readability or usability ease of understanding and navigating tests.
8. It screams at me and isn't conversational. (Static (non-social) pieces should also create conversation, except it occurs in the buyer's mind.)
9. It is boring.
10. It is mass marketing that isn't about me. (Marketing pieces should always be targeted, including advertising that fits that description when it has been carefully placed.)
11. It hasn't been and still isn't listening to me, sharing stuff I don't care about.
12. It contains no call to action.
13. And it doesn't aid sales in selling.

That's my Baker's Dozen of typical marketing collateral mistakes. There are more and each of the above doesn't always apply.

Creating Winning Marketing Pieces
Nevertheless, to end on a positive note, here are a few ways to create winning marketing pieces:
1. Use only the words necessary to tell the right story to the right customers.
2. Include visuals or videos or audio that jump off the page.
3. Create credibility and trustworthiness by using customer's words to explain why they love your product (or inspire them by creating opportunities for them to say those things).
4. Include the two or three messages that persuade me to buy.
5. And show me how to buy, quickly and easily.

If you are not getting the results you need after the cost cutting and are asking “what’s next?” perhaps Lewis Green or I could help.

Thanks

John


John Maver
President
Maver Management Group
(925) 648-7561
Maver Management

Turning Around The Turmoil In Companies

Companies today are so often caught up in turmoil as they struggle to work through the economic downturn and the cost cutting that has happened in all industries. The focus has become just staying alive.

Scott Adams has cartooned the problem perfectly in a recent strip.



We laugh at this idea and yet we see it happening over and over again. The business model has changed and will never be the same again. There are too many influences. The economy just brought the problem to light.

What can you do as CEO, COO, CFO or any C level executive? Stop the broadscale cost cutting. By now you have trimmed the obvious fat. The issue now is to take stock of what is left and then start to move forward.

We have written many times that a solid business plan is required. It has to have the following characteristics:
1. Recognizes the current market place realities. The old and the wished-for future are not relevant here,
2. Identifies and capitalizes on the company’s core competencies.
3. Focuses effort to maximize the impact of scarce resources, both people resources and financial resources.
4. Kills, stops, drops, sells off, or forgets the non priority projects and initiatives, no matter whose idea they were or how much money has been sunk into them.
5. Emphasizes cash flow. Without the operating dollars coming in at this moment there will not be a tomorrow.
6. Communicates down through the ranks so that “the untalented will not be executing the wishes of the powerful until failure is achieved.”

You may need help. Most companies do, but don’t acknowledge it.

Contact us. We can help. We are turnaround experts.

Thanks

John


John Maver
President
Maver Management Group
(925) 648-7561
Maver Management

Turnaround Management - Overcoming Marketing Mistakes

Cost cutting isn’t enough in today’s economy. You have to drive the revenue line as well. Here are 7 common mistakes made in marketing and what you can do about them.

1. No Game Plan.
Strategic planning gets a bad name but you can’t win without it. Doing marketing randomly isn’t a good idea. This will dissipate your energy and resources and make you feel even more desperate if your efforts aren't successful. Develop a game plan. Identify your target customers and be specific about their needs and how your product or service can meet those needs. Then build a step by step plan to deliver your message persuasively.

2. Nothing added. Just the same old, same old.
Everyone is providing value oriented services. Fast food places have “Value meals”. They offer special products but at a lower price. Retail stores have a two for one special or have bundled several products as a special. What can you do to increase the value associated with your offerings and not rely on price cuts which just make meeting the revenue target harder. Think about it and build it into your plan.

3. Having a meaningless marketing message to your customers.
If your message is not clear and full of value, prospects won't pay attention. If it is not persuasive, they won’t take action. Make sure your marketing message includes: a. a clear target market, b. a problem or issue your customer is experiencing, c. the bottom line outcome you produce and d. a compelling and provocative story.

4. Outdated, tired marketing materials.
Your plan is new. Your message is new or revitalized. You must communicate it with new fresh materials that have the look and feel of quality consistent with the image you want to establish. This holds true not only for the materials but also for the medium you are using including Facebook, My Space, twitter, website and blogs.

5. Letting your sales activities undermine the impact of the marketing.
The selling process often ends up as a rambling, unfocused conversation about your services, hidden among many other items. The message gets lost. Another major problem is that many presentations focus on your company and your product and not on the customer and their needs. They are only interested in “What’s in it for me.” There are many formats that can be used but all need to be focused and take the prospect through what is in it for them in regard to a problem they are experiencing now with a call to action and an easy next step.

6. Being your own worst enemy.
The economy is rocky and we are seeing problems in the stock market, housing prices, the automotive industry and troubles with the banks. Often we think stressful thoughts, feel worried and then become paralyzed from taking any creative action. Focus on what you can control and then take action one step at a time. Quickly, you will have progress toward the goals that you set in your plan.

7. Just not doing it.
You have to get out of your office and make it work. The best plan is no good sitting on your desk or on your computer. The more “face” time you can get with your customers the more you will sell. Face time can be defined as anything from an interactive e-mail to an actual face to face sit down sales presentation.

You may have shifted your focus from cost cutting to revenue generation built on your new more efficient business model. That puts you ahead of many other companies and perhaps most of your competitors. However, that only is a competitive advantage and will pay off if you aren’t making these marketing mistakes. How many of these marketing mistakes are you making? What's your plan to correct them?

Get some help and make your resources really work for you.

Turnaround Management.

John

John Maver
President
Maver Management Group
(925) 648-7561
Maver Management

The Need for Turnaround When Smart Companies Do Dumb Things

We see examples of smart companies doing dumb things every day and there are books that have been written about this phenomenon. In fact, business news is full of stories about companies, senior executives, CEOs and Boards of Directors that have done something that from the outside or in hindsight looks to be dumb. In many cases it has required turnaround expertise to bring the company back to profitability and to survive.

Why do we see so much of this in the press?

First, bad news is much more newsworthy than good news so we see a lot of it being reported.

Second, hindsight is 20/20, so those of us who look at the results can see when there have been mistakes.

We need to remember two things

First, if mistakes are not being made by companies, very little learning occurs and the company will ultimately die. No one is right 100% of the time. So companies and senior executives need to be making mistakes (small mistakes) and hopefully learning from them.

Second, in most cases, the people who have led the mistakes didn’t start out to do dumb things. They really thought they had a winning idea.

But what are some of the root causes that turn what was expected to be a winning idea from the outset into a result that gets branded as dumb?

1 Operating without a clear strategic plan. Without the plan, the company is almost guaranteed to have unfocused resources and multi-direction activities. The result will be a number of failures, some that are going to be seen as dumb ideas.

2 Poor communication. Often a plan is devised by the executive group and then not well communicated to the organization. Hence the execution is flawed leading to lack of success.

3 Not heeding changing or changed market conditions. Once a program is underway in development, it generates a momentum all of its own and people/companies are hesitant to make changes, particularly if one has ownership in it. What was a good idea at the start becomes a dumb idea in a changed economy.

4 Insisting on consensus. The old adage is that the camel was designed by committee with a forced consensus. The more people involved, the harder it is to reach a workable solution and once reached, to change it in any way. This is not to recommend that all decisions be made unilaterally, but that a committee decision is viewed carefully.

5 Pride and arrogance getting in the way. It causes decisions to be based on “who is right” not “what is right”.

6 Unrealistic expectations. It is good to dream big dreams. However, realism must come into play and overreaching, overextending resources and over estimating causes disasters.

7 Budgets and budget changes. Often the original proposal has sufficient resources to achieve the result. However often either the resources are cut back for a variety of reasons or there are extensions to the project. Budget shrink and project creep set in and the result is always not good.

How could companies minimize the chances of making dumb mistakes?

1 Develop a clear realistic business strategic plan.

2 Get some expert help from someone who has been there before and has relevant experience

3 Make fact based decisions.

4 Act on what is right not who is right. Just because the CEO says they like it doesn’t necessarily mean it is a great idea. The organization knows their capabilities.

5 Do not force consensus.

6 Communicate, communicate, communicate.

7 Don’t shoot the messenger of bad news. Reward them for coming forward and avoid the huge dumb mistake.

9 When either the project or the budget changes, make the appropriate modifications.

10 Expect mistakes. Learn from each success and failure so that the small dumb mistakes become learning and never become big dumb mistakes.

If you have already made the dumb mistakes and are in trouble get some turnaround help quickly and get back on track. Squash the pride and arrogance and go for positive bottom line results.

Thanks

John



John Maver
President
Maver Management Group
(925) 648-7561
Maver Management

Staying positive in a negative world

We are seeing glimmers of hope in this economic recession. At least, there seems to be a lot of activity in Washington and much better communication. Our hope is that the activity actually is producing progress.

“In the end you are measured not by how much you undertake but by what you finally accomplish.” Donald Trump

While we love the glimmer, the realism is that we have yet to see the repercussions from the bankruptcies of the auto manufacturers and all of their support industries. We still are feeling the hurt from the credit crunch and unemployment continues to rise. Consumer spending has been greatly curtailed. Not only are purchases for the home down, but all the industries associated with travel, eating out or leisure are also hurting. Look at how many restaurants are closed.

As if the economic issues are not bad enough, our traditional “heroes” are being disgraced and seldom stand for good any more. Athletes have drug and alcohol problems, beating their wives, trashing hotel rooms and more. Actors and actresses seem to have forgotten moral values completely. Many reality shows are based on poor values. The “rap sheets” on our political leaders are shameful in so many cases. Not only do we face this in the news every day, we hear it from the politicians themselves.

“Congress is the only business in the world where your colleagues wake up in the morning and try to figure out how to screw over their colleagues.” Rep. Mike Thompson D – St Helena

So how do we stay positive in this negative world?

1 Look for the good in the people around you. The American spirit is alive and well and ready to burst despite the problems. If the people around you are negative, get rid of them and surround yourself with positive people.

2 Look for the real heroes and celebrate them. Look for the men and women returning from military service abroad, or "Sully" Sullenberger, the pilot of the plane landed on the Hudson River and who lives in my hometown. Or the single mother who works hard to raise her kids despite the hardships. Or the struggling business owner who opens his or her doors every day.

3 Look for the positive role models on TV and in the movies and support them and their products. It used to be that all of the spokespeople and characters for products were positive. Search the ones out that remain.

4 Look for someone to help that can’t help themself. You will feel enormously better.

5 Look for a church service to attend. You may not have the same faith that I have but go worship.

6 Call your parents and tell them you love them. They need that reminder even when it isn’t Mother’s day or Father’s day.

7 Smile at people and enjoy the smiles that come in return. You will be amazed at the reactions you will get from this simple act.

8 There was an old psychology nugget that said “if you want to be positive, act positive”. That is good advice.

9 For your business, read the other articles on this site and take some action. These are best practices and can save your business. That will help you feel positive.

10 Contact me and let me help you. I have helped many others through rocky times both personally and in their business.

A leader’s role is to raise people’s aspirations for what they can become and to release their energies so they will try to get there.” David Gergen

Thanks

John

John Maver
President
Maver Management Group
(925) 648-7561
Maver Management

Turnaround Requirements – More CEO Ousters Underscore the Need for Better Strategizing

The recent ousters at GM, Bank of America and scores of other companies should be a warning to other CEOs that they have to strategize differently. Running a company is like driving at night in unfamiliar terrain on a winding road. You may know your long-range objective, but you can only see up to the range of your headlights. Beyond that is a mystery. So while the company’s objective may remain constant, the plans must be flexible enough to withstand rapid modification to meet market conditions and still be successful.

Many CEOs who don't want to step aside still rely on an antiquated strategic-planning process that often doesn't help them make better decisions faster. Once a year, they require the head of every business unit to compile a strategic report that includes three-to-five year financial forecasts. A fraction of this data is used to decide budgets, but most ends up in forgotten files. In most cases, the data is outdated before it is used.

So that once-a-year strategic plan is next to useless. It slows the decision-making process and is too detailed to be valuable to the units trying to manage the business.

It is difficult to believe that this still exists, assuming the company has a plan in the first place and many don’t. In this economy, no wonder so many companies are in trouble and its not just Chrysler and the auto makers that are filing for bankruptcy.

Clearly a much more flexible plan is required. In order for it to have a chance to work, managers below the executives must be engaged in quicker, more continuous decision making. Monthly full reviews of the plan are required with weekly updates and adjustments.

What is worse in these times is the cost cutting that has been done without an overall game plan. In many cases, this has undercut the company’s ability to execute the programs it does have in place. Many turnaround executives can strip out the costs, but it is important to also identify opportunities, harness resources, and create the plans that can build the business back. Just being a numbers person isn’t enough.

CEOs need turnaround experience these days. If they don’t have it, their tenure as a CEO is going to be short. “It has been my experience that just like in white water rafting, without the right expertise, you will be tossed out and the venture doomed,” says Walter Shill, managing director of the strategy practice at Accenture.

Three questions for you.

1. Do you have a plan that is flexible and works in today’s dynamic economy?
2. Do you have the cost reductions and the plans that identify opportunities to build the business back now and when the economy turns?
3. Do you have the turnaround expertise required to keep your “white water raft” from flipping or do you need to get it?

Contact us. We can help.

Thanks
John


John Maver
President
Maver Management Group
(925) 648-7561
Maver Management

What’s the issue? Business planning or just doing?

The recession continues and more and more businesses are failing - failing and being forced out of business, failing enough to have significant losses despite large layoffs and a desperate focus on cost cutting or failing through having little idea of how to turn the business around and keep a meaningful cash flow.

What’s the issue? Is it too much planning or too much action?

Are they failing because they have spent so much time creating the mission, vision, objective, goals and measurements for their strategic business plan that the opportunities have passed them by? Or are they locked in to outdated plans, programs and spending? Or is it more a case of having leadership that is unable to cope with the realities of today’s dynamic marketplace?

On the other hand, is it because they do not have a basic business plan that they are following and are just winging it? In this case, everyone is going full speed, but not in the same direction, no matter what you may think and certainly not toward a specific goal.

Or worse still, is it because they are faced with analysis paralysis and actually doing nothing? This cause a company to seize up and the organization grinds to a halt.

Actually, the failing may be the result of some or all of these elements. Business plans are a MUST for every company. However, they need to be actionable. And they need to be acted upon, adjusted and acted upon again. They shouldn’t be binder thick. In fact, we recommend that they be kept to one or two pages. Otherwise, they are not read, used properly or followed.

What are you doing in your company? If your company is struggling, is it due to over-planning for the business with concentration on the theoretical plan and not taking the appropriate action? Or is it all action and no known overall plan. Clearly, it can’t be an either/or if you are going to survive in today’s economy. It is a reasoned combination of both planning and action.

Do you have a written business plan? Is it simple and understandable to all? Has it been communicated to others?

Are they taking action on it? Are you adapting the plan based on the ever new market feedback? Do your customers know what you are trying to do and the benefit in it for them? Are they supporting your direction?

What are the results and what needs to be changed?

So many companies are focused on cost cutting that they are not generating revenue that is desperately required for cash flow and support and also undermining all future efforts. Now, and when the economy turns, it is going to be the company with the successful plans put into action and market honed that will prosper.

Managing in today’s turbulent times isn’t easy so don’t think you can do this on your own. Get some help from experts who have been there before and can help lead you through the problems.

This can be a time for you and your company to actually prosper but you have to do it smartly.

Thanks.

John
John Maver
President
Maver Management Group
(925) 648-7561
Maver Management

Don’t Blame the Plan… Blame the Boss! Turn it around!

My friend Lewis Green wrote an article on this subject in 2007, part of which is included in this article. Since that time, the economy has tanked and many businesses have tossed out their strategic plans. Some have even tossed out their bosses. As companies struggled to stay alive, they have focused on cost cutting. Some bosses have been smart enough to lead the development of a plan that is in tune with their current realities while others have just cut. The “cutters” are and will be in trouble

Lewis asked “Is there anyone in business foolish enough to claim strategic planning always achieves your goals and results in success?” Certainly, having the plan alone will not result in success

Management consulting firm Marakon Associates and the Economist Intelligence Unit surveyed senior executives at 197 companies. Respondents said their firms achieved only 63 percent of the expected results of their strategic plans. And in a white paper entitled Three Reasons Why Good Strategies Fail: Execution, Execution, Execution, which carried the above research, Wharton management professor Lawrence G. Hrebiniak says MBA-trained managers know a lot about how to develop a plan but very little about how to carry it out. “Most of our MBAs receive great training in planning but far less in execution,” explained Hrebiniak.

Based on my experience, these findings are correct. When a plan is developed and that is missing so often, the failure comes from poor execution. Execution with brilliance comes with experience.

Some say that executives can not always be held entirely responsible. As long as shareholders and board members insist upon short-term results, only the most powerful and fearless executives will reap the long-term rewards and margins that strategic planning can deliver. But isn’t that the challenge for CEOs. That is what is causing the lifespan of CEOs to become shorter and shorter and the need for turnaround executives to come in and rescue the company.

So how do we as CEOs, executives and senior managers most effectively use strategic planning and get the desired results from it?

• Do annual strategic planning to provide overall direction but make monthly adjustments to stay current. You will be amazed at how quickly your business plan can be outdated. This applies to all businesses—whether a sole proprietorship or a mega multi-national corporation. While this provides a longer term direction, it takes advantage of flexibility and resilience.
• Be confident. Set high goals, short and long term. Don’t be intimidated by the Street or the Boardroom or your own fears. Those who merely set goals they can easily make never get around to stretching the business to achieve higher margins and outstanding profits.
• Use metrics to measure every goal in every functional area.
• Align every department, function and employee so that every ounce of the business’s energy is directed at achieving the goals set within the business plan
• Tie pay and benefits directly to success or failure.
• Do not focus on cost cutting. Make the focus of the plan marketing and sales. Companies have to operate cost effectively, but without revenue there is no company,
• Communicate, communicate, and communicate! If you want your plan to succeed, every member of your culture must be engaged and informed.

Turnaround management is about identifying the issues and opportunities, creating winning plans and then executing to satisfy both the short and long term objectives. So stop blaming the plan and the boss and start turning the business around.

Let me know how you are doing or how I can help.

Thanks

John



John Maver
President
Maver Management Group
(925) 648-7561
Maver Management

Theme from Mahogany

Diana Ross sang this a number of years ago and its words fit today’s economy better than ever. Most of us do not like what life is showing us.

Do you know where you're going to?
Do you like the things that life is showing you?
Where are you going to? Do you know?
Do you get what you're hoping for,
When you look behind you there's no open door?
What are you hoping for? Do you know?

Now looking back at all we've had,
We let so many dreams just slip through our hands.
Why must we wait so long before we see,
How sad the answers to those questions can be?

Do you know where you're going to?
Do you like the things that life is showing you?
Where are you going to? Do you know?
Do you get what you're hoping for,
When you look behind you there's no open door?
What are you hoping for? Do you know?

Revenues have plunged and profits are non existent. Layoffs are common and so are business closings. Employees are frightened about their job security and almost all are over worked. Businesses and employees do NOT know where they are going to.

Why is that?

Most of these businesses either do not have a workable business plan or have discarded their plan in the confusion caused by trying to remain profitable. They have moved away from the very aspects of their business that made them successful in the first place. The dreams that they had have evaporated and they are left with struggles.

What can you do about this? Here are 7 ideas.

1 Bring your executive team together and analyze your current situation and the opportunities that exist for you.

2 Use the information to develop a business plan that will work.

3 Focus your efforts so that you harness scarce resources.

4 Stay on top of cash flow. Cash is king!

5 Stop just cost cutting and work on driving revenue and profitability. There is a difference.

6 Engage your employees on focused business building within the scope of the business plan that you have developed.

7 Invest in some expert help. You don’t self medicate, so don’t do it to your business.

You may not like the things that life is showing you, change them. Make sure that you and your entire organization know where you’re going to.

Thanks

John
Maver Management Group



John Maver
President
Maver Management Group
(925) 648-7561
Maver Management

Keeping Your Strategy “Live”

Michael Port in his book “Book Yourself Solid” wrote

"One day, there was a blind man sitting on the steps of a building with a hat by his feet and a sign that read: 'I am blind, please help.'
A marketer was walking by and stopped to observe. He saw that the blind man had only a few coins in his hat. He dropped in more coins and, without asking for permission, took the sign and rewrote it.
He returned the sign to the blind man and left. That afternoon the marketer returned to the blind man and noticed that his hat was full of bills and coins
The blind man recognized his footsteps and asked if it was he who had rewritten his sign and wanted to know what he had written on it.
The marketer responded: "Nothing that was not true. I just wrote the message a little differently." He smiled and went on his way.
The new sign read: Today is Spring and I cannot see it.

Sometimes we need to change our strategy and positioning. If we always do what we've always done, we'll always get what we've always gotten. That used to be the case. In today’s economy, we will not get what we have always gotten. We are going to go out of business. Companies must change the way that they do business.

We have written often that many companies either don’t have full written business plans or have ones that are very loosely constructed. Some companies, even well run companies are wedded to the once a year strategic planning process. This is not only cumbersome, but also causes the company to miss out on many opportunities. The same holds true on positioning and the way that companies communicate their message. In trying to save costs, old materials are being used and the positioning in today’s economy just won’t resonate with customers. The example above is a very good illustration.

Is your business plan a “live” document?

How often do you review the basics of it?

How relevant is your company and brand positioning? Is it working? How well and how do you know?

We are now into Spring and you may be able to “see it” better if you check out the business plan and the positioning.

Thanks.

John

John Maver
President
Maver Management Group
(925) 648-7561
Maver Management

Twelve Turnaround Tips for Companies

Most companies have spent the last several quarters cutting and cutting and cutting costs. The focus is on minimalization. Unfortunately the tough economic climate is continuing and is expected to remain for some time. Now what? What focus do the company and the employees have and what are you going to do to actually bring in revenue?

Here are twelve tips to not just survive but thrive in the midst of tough times.

1. Re-examine your business plan and recheck your business fundamentals. You may be surprised at the opportunities that will be presented.

2. Do what it takes to remain profitable. Negative numbers become an excuse for almost anything and you will not only lose focus but you will lose more business. That doesn’t mean just cost cutting. It means being smart about what you are doing.

3. Focus! Cut what's non-core. Invest in what is. Know who and what you are and BE THAT!

4. Simplify something – it will help cut costs. Complexity equals expense. Take a look at all of your procedures and find simpler methods.

5. Look outside for good partners both as alliances and suppliers. Leverage relationships to save money or make money. Others are looking for help too, so work together.

6. Do what you already know is right -- only this time, really do it. Many companies know the right path but continually choose not to take it for a variety of reasons. Stop doing what doesn’t work and reallocate the resources.

7. Go talk to your customers. They are hurting too and want your love and leadership. They will remember you when things turn around.

8. Keep some investment in your R&D. You'll need it. This can give you the competitive advantage when the sales start to flow again.

9. Look for technology-based efficiency. Use the Web to cut costs and boost productivity.

10. Enlist your employees' support. Ask them for ideas. They are closest to the action and will have more good ideas than you could possibly execute

11. Believe in your own business and your future. There will be brighter days ahead and you want to be part of them

12. Hire a good consultant. Their experience and objectivity can show you ways to accelerate your positive business progress. They are not an expense. Good ones are an investment. The ROI can be astounding.

Contact me and let me know how I can help you.

Thanks

John

John Maver
President
Maver Management Group
(925) 648-7561
Maver Management

Company Turnaround Needs More than just Cost Cutting

It seems like every company is heavily into cost cutting and layoffs as a means to turn around their business in these economic times. In fact, many turnaround leaders are financially oriented and focus on stripping out costs. They leave the bare bones and the company continues to operate, apparently profitable, in the short term. Unfortunately, many companies are left weak, unbalanced and defenseless to further market changes or competitive moves. They ultimately struggle and fail. Recessions have a way of weeding out the weaker companies. On the flip side, if you do things right, you can come out of the recession a lot stronger than your competition with more customers and more opportunity. Here are some best practices ideas that will enable you to win now and even more so when the market changes to be more positive. The key is to play to win, not just survive.

1. Understand the Opportunity
Business is about competition in meeting your customer’s needs. To succeed, you have to do things better than your competitors. In recessions, companies tend to lose focus on everything but cutting costs. Among other things, they stop thinking about customer satisfaction, which obviously leads to customer dissatisfaction. This gives you the opportunity to capture market share. To keep your customers satisfied, you must continue to deliver great products and services. Focus on your customers. They are probably hurting too and want your attention and leadership. They will remember you when things turn around. And if your competitors have let their relationships slip, the customers will certainly remember that too.

2. Playing to win means having a winning plan
Many business leaders measure their success by how hard they work and whether there is enough money to cover payroll. That’s not enough, particularly in tough times. You have to have a solid plan that is working and is known and understood throughout the company. Re-examine it and make certain that it is built on the right fundamentals. You may be surprised at the opportunities that will be presented. Most organizations have layers of bureaucracy that impede the flow of ideas and slow down the approval process. Remove as many of those blocks as you can so that your organization is able to react quickly when new developments or changing trends warrant. Prioritize projects that address core business goals to avoid knee-jerk reactions to cutting expenses like headcount reduction.

3. Upgrade the team
People build businesses. Good people build strong businesses. Recessions free up people with extraordinary talents. Either they have been caught in large scale RIFs and are looking for opportunities or they are left after a RIF and are no longer doing what they do best, as other jobs have been laid on top of them. Seek them out and hire them. Up grade your talent. This is the opportunity to get “A” players. You may actually be able to decrease your payroll in this current economy. Teams with strong benches win in the long term.

A second point is to use downtime to build skills. A recession can result in less work for your staff. They may end up spending more time on lower priority jobs. Give them the opportunity to use their downtime to increase their skills. Although training is expensive, it’s not nearly as expensive as losing good employees. When the projects come back, those employees will be able to do them better and quicker, creating opportunity and saving you money in the long run.

4. Engaging Your Customers
Get out of the bunker. Everyone is “hunkering” down and turning inward looking for excess. This is the time when you must get out from behind the desk and concentrate on building and nurturing relationships. Go and see your customers face to face and get an in-depth understanding of their situation and how you can be of assistance to them. This doesn’t mean giving everything away, but rather finding opportunities to help them and in turn help you.

Make your employees customer-centric. Make them ready to engage the customer when there are contact opportunities. Everyone must be in “sales”. Too often the customer is viewed as a nuisance and their demands are unreasonable. While that may be true, they also pay the bills, so help your organization understand and meet their needs. A lot of business campaigns fail not because the message doesn't get out, but because it doesn't get "in." Before you launch any new marketing initiative, be certain that everyone in your organization knows about it, understands their role in it, and realizes the importance of that role. Poor internal communication is bad marketing practice in any economy, but in tough times it can be devastating.

5. Focus on what is vital today.
Your business plan must be built on your core competencies and prioritize projects that will have an impact today. This is making sure that you do what is important and do it most cost effectively. Find new and different ways to achieve the results at lower costs. Many businesses just cut. This causes revenue problems, now and in the future. Simplify something. It will help cut costs. Complexity equals expense. Operate with a bootstrap mentality. Capital is going to be hard to find and “cash is king”. This is where having the best people with creative minds will really pay off. The one caveat is to keep an investment in R&D since it is the lifeline to the future. But make certain that your projects are focused and tightly controlled.

6. Out-Thinking Your Competition
A recession tests business models. Many of your competitors will be scrambling to cut costs and then regain their balance. You can have a greater plan. Anywhere in the world, basic needs of people remain the same, but people are cutting their spending. This demands more cost effective solutions. How can you provide better value than ever before? How can you meet these basic needs? How can you reach more people without increasing expenses? You have to become more efficient and effective, finding creative ways of supporting the business. If you are able to optimize your new value proposition, you can secure an increased share of wallet and market that will pay off in both the short and long term.

Here are three ideas:

* Do a lot of little things right. The tendency in tough times is to search for the one magic bullet that will make everything better. But magic bullets are hard to come by. Most positive turn-arounds come about as the result of finding a number of small solutions, not one big one.

* Fix the leaks. When times are good, it's easy to overlook the problems caused by letting things slide. If mailings aren't done on time, if data entry gets behind, so what? When cash flow is sufficient, the income leaks these practices create just seem like trickles. It's not until times get tight that we realize we've actually created gushers. Stop the leaks and save the cash.

* Selectively, step up your marketing by doing more of what works best. Marketing is often the first to be cut when money gets tight. However, studies have shown that in previous recessions, companies that kept their marketing focus came out ahead. The key is to do this selectively by focusing on what works best. Do an in-depth analysis of your programs and focus on the top ones. When times are tight, it often makes more sense to replicate than it does to reinvent.

7. Get some help.
Invest in someone short term who can help you navigate through these tough times and keep your business profitable. Hire a good consultant. Their experience and objectivity can show you ways to accelerate your positive business progress. The ROI can be astounding.

Let us know how we can help.

Thanks

John


John Maver
President
Maver Management Group
(925) 648-7561
Maver Management

What’s Happening Boss?

The question echoes through the halls of every company, big or small and across all industries. What’s Happening Boss?

Almost every day now we read about a company shutting its doors. Unfortunately, that is only the tip of the iceberg. Many close and go unreported. Isn’it a shame to have built a company and have no one even notice it’s gone? Often in the closings, the employees are held in the dark until the announcement is made that the company is out of business and that the announcement day is in fact their last day. No notice. No notice at all.

Other companies are reducing their work force. Again the employees get little, or no notice. The uncertainty in this current economy and the potential for job loss is paramount today. Almost every family is affected, either directly or through a relative or close family friend. The jobless rate is at a high.

Ironically, internal communication between managers and employees tends to decrease as business declines. Many times managers themselves don’t know what is happening. When they do they don’t discuss it for a variety of reasons. The result is that it increases the fear and feeds the rumor mill.

We have been recommending over communicating to our clients and in our published articles. Human Resource experts recommend that a company, quickly and specifically, tailor communication to key employee groups. Upper managers and the HR team should pull together the top 5 percent of employees to discuss the business plan and to outline their commitment to these key employees. It is important to engage them early and express their value to the company. Making it clear to top performers that you want them to be a part of the solutions now and in the better times ahead, can go a long way in keeping the best and brightest. Keeping lines of communication open helps develop the supportive organizational culture and an uncommon willingness to sacrifice for the company in tough times. This culture-building focus helps leaders find alternatives to layoffs and win support for labor-preserving, cost-cutting moves. This is the win-win solution.

We continue to recommend that companies have specific plans that cause them to protect the core elements of the company and enable them to continue in operation. We have recommended many ways of best practices cost cutting. In this article we are strongly recommending that companies communicate effectively, regularly and often with all employees, particularly the key employees. Make them part of the solution.

Let us know how we can help.

Thanks

John


John Maver
President
Maver Management Group
(925) 648-7561
Maver Management

50 Cost Savings Tips to Use NOW!

The Maver Management Group has been working with many companies to help them, not just cut costs, but to get and stay profitable. Here are some of the tips that we have gathered on cost cutting and a few on revenue generation that can be implemented TODAY without jeopardizing the integrity of your programs and services. You may have some of these already in place. Consider the rest of the tips.

Planning = Survival
• Develop a game plan that brings your cost saving activities in line with your overall business plan.
• When an employee leaves, evaluate whether the position is still needed, or whether it can be filled by a part-time person or outsourced completely.
• Conduct an internal business process review and streamline operations.
• Outsource all non-core functions (accounting, information technology
• support, printing/mailing, etc.).
• Get aligned with the processes of your suppliers and your customers to take duplication and waste out of the system.

Cash is King!
• Develop cash flow budgets and invest unused cash.
• Consider leasing versus buying your office equipment.
• Interest rates are at all time lows. If you have the credit refinance any outstanding loans.
• Adjust investment strategy to allow for more interest income in the short term.
• Renegotiate your credit card discount fee at least annually as credit card volume increases.
• Look to other associations and corporate credit cards for discounts on office supplies, equipment, delivery services, etc.
• Delay capital purchases.
• Require multiple bids on all products/ services above a certain threshold.
• Meet with your banker to review your monthly account analysis statement for potential cost savings.

Payables and Receivables
• Don’t undermine the relationships with suppliers or customers, but realize you are not their bank.
• Change payment cycle to twice per month or every two weeks.
• Stretch payments terms and pay no earlier than 30 days out, unless you can save on payment discounts.
• Calculate the average age of receivables outstanding over the past 6 months. Work it down despite the economic pressures on your customers.
• Change your policy to require prepayment for all product purchases and meeting registrations.

Budgeting and Cost Allocating
• Require all program managers and department heads to justify every line annually.
• Revisit budget assumptions quarterly to determine if upcoming projects are still necessary or if they can be postponed.
• Allocate all costs (direct expenses, personnel and overhead) to each major program area. Pull the plug QUICKLY on non-performing programs.

Un-Fix Fixed Costs
• Renegotiate contracts.
• Don’t be afraid to ask existing vendors for help.
• Cut down on hours/usage.
• If you lease your office space and plan to be there long term, consider renegotiating your lease well before the expiration date to lock in a better rate.

Telecommuting
• Consider telecommuting to offset the need for additional office space.
• Utilize office/cubicle sharing to save space.
• Consider subletting excess space.

Make use of brokers
• Analyze all telecom costs (local, long distance, internet & conference calling).
• Get a better deal on health, disability, life, property and casualty and D&O through a broker
• Ensure that the broker’s commission is paid by the provider and not you.

Use the Web
• Learn and use social networking to drive business
• Find impactful means of delivering your sales message electronically vs. snail mail.
• Use the web for booking airline tickets and ordering supplies where there is an on line discount.
• Move printed materials to your website (e.g. Annual Report, newsletters, member communications, meeting brochures).
• Utilize e-learning or CD-ROM based learning for staff.
• Use audio/web conferencing versus in-person meeting. Archive for later use (sales to members).

Administration
• Ensure that someone in the office is monitoring supplies on a weekly basis.
• Prepare inventory sheets of essential items. Charge programs/departments for supplies used as a direct expense for their area.
• Buy supplies in bulk to get discounts.
• Buy last year’s models.
• Choose quality and replace less frequently.
• Use “store brands” since their quality is usually very good.
• Closely track FedEx, UPS, Airborne and local courier usage.
• Consolidate carriers for volume discounts or use Priority Mail for non-essential items.

Get staff involved!
• Make cost savings everyone’s business! Convince them why they should care!
• At least annually, review the association’s financials with the entire staff.
• Develop a program where staff receives a percentage of the cost savings.

Find “Low-Cost” Experts
• Get expert advice that pays for itself and takes the pressure off you.
• Rely on existing vendors for training and retraining.


Contact us, we can help.

Thanks,

John


John Maver
President
Maver Management Group
(925) 648-7561
Maver Management

Group Sales Cost Cutting Best Practices – Some Specifics

This is a continuation of the article written with Janice Bays, President of Meeting Management Associates and provides some specific cost savings ideas. This is particularly applicable to smaller companies who do not have a large contingent of full time convention or meeting staff. Although those companies should feel free to keep reading as a refresher.

Exhibit Cost Cutters
1. Plan ahead. - If you make comprehensive plans long before your shows, you will avoid costly rush charges for graphic design, production, show services and freight.
2. Upgrade your existing booth. - If you think an exhibit facelift will provide you with a good-looking, effective result, it could be much less expensive than starting from scratch. Design and build in-house if you have a talented crew. You can do the work in-house and save some hefty design and construction fees. A caution here, if not done to specifications and codes, there could be substantial liability if someone gets hurt with your exhibit on show floor
3. Buy a modular exhibit. - The design costs are not necessarily lower, but the costs for shipping and installing/dismantling these exhibits are considerably less. One company reported saving $10,000 to $20,000 per show in installation fees. Also modular allows for ease in moving to different configurations or upgrading.
4. Buy and recondition a used exhibit. - Exhibit brokers, as well as some exhibit houses, offer a variety of used exhibits. The cost of buying used is typically 20 percent to 50 percent of the cost of building new. Remember to factor in the cost of any alterations the used structure will require to meet your specific needs.
5. Consider renting. - Renting an exhibit saves you the costs of building and warehousing. It may be the ideal choice for one-time or infrequent exhibitors.
6. Go portable. - Lightweight, modular booths can have the look and feel of custom exhibits, while reducing significant operating costs for freight, drayage and storage. In a 10-foot booth space, a portable exhibit is often the best choice. These exhibits are usually inexpensive to buy and ship and they can be set up by almost anyone on your staff, thus eliminating installation and dismantling charges.


Keynote Cost-Cutters
1. Hire local. - Look for a speaker based in the same city as the event. Not only will you avoid the speaker’s additional travel expenses, but many road-weary veterans will jump at the chance for a local gig and just may cut you a deal in the process.
2. Find out if the speaker has something to sell. - Speakers with books or videos to sell may be willing to accept lower fees if allowed to peddle their wares. A simple table and chair outside the meeting room (rather than a mid-speech plug) may suffice. Many motivational speakers make the bulk of their living from selling their products.
3. Share costs with another group. - Check with the hotel or local convention and visitor’s bureau for other meetings scheduled for the same day. You might be able to share a speaker’s cost and services.
4. Consider a politician. - Some speakers do not accept fees, such as public officeholders. If your event is in or around Washington, DC, a member of Congress might speak to your group.
5. Above all, - See the talent in action and check references. Don’t be surprised.

Multimedia Cost Cutters
1. Know the story you want to tell. - As with any other marketing medium, it saves time and money, if you can give producers clear directions from the start. Know the audience you want to reach, and the message(s) you want to deliver.
2. Incorporate as much existing material as possible. - Reuse video footage, photographs, slide presentations, brochures and any other visual elements that are already part of your marketing campaign. You can save thousands of dollars over the cost of creating new materials.
3. Don’t overspend on hardware. - The hardware should be a relatively inexpensive part of any interactive system. The presentation itself should be dazzling, but the workhorse equipment controlling your system doesn’t need to be. Work with a knowledgeable professional to choose only the necessary hardware components.
4. Make your message multipurpose as well as multimedia. - You can still have detail-intensive modules in your presentation, but the overall sales pitch should be broad enough to suit other trade show and marketing needs. For example, you could set up your interactive system in your corporate lobby or use it as a training vehicle for new employees. With this approach, you can amortize the cost over more than one venue.
5. Use the expertise of your professional companies. - Sit down with your AV company and work out the least expensive way to set up. Use LCD panels instead of video projectors. Use as few microphones as possible. This will eliminate labor and the need for sound-mixing equipment. When you expect to have extensive AV requirements, book a conference center, most of which include equipment in the cost.

Travel Cost Cutters
1. Airfare - Analyze the cost savings of airfare requiring a Saturday-night stay. It may not be cheaper than paying for the extra room night plus applicable per diem. Travel during off-peak hours (early morning or late evening). Ask for additional frequent-flyer points from your official air carrier.
2. Ground transportation Shuttle service - Ask hotels whether they provide a complimentary airport-shuttle service and book with those that do. Instead of meet-and-greet services, distribute vouchers for airport shuttles and/or fare for public transport. While negotiating for your hotel or resort, request complimentary limousine service for VIPs. Transport delegates within a four to eight-hour window to cut back on bus transfer costs.
3. Parking - Inquire about reserved and complimentary parking. Ask that your special guests and staff get reserved parking spaces close to the hotel entrance.
4. Meet and Greet - Use the carrier's VIP lounge for the group's meet and greet.
5. Around town - Ask the local taxi company for discount coupons for local shows, restaurants, and sightseeing attractions.

Hotel Cost Cutters
1. Know the value of your business. - Keep a detailed history of all your events. You could be far more important to the hotel or the chain than you realize. This can produce extra discounts. Of course, if you are effectively using a professional outsource management company like Meeting management Associates, they will be able to negotiate better rates, based on their combined larger business levels.
2. Locations - Use local destinations or smaller cities that can offer you more for your money. Most have exceptional attractions and don’t have the overpopulation that causes congestion and costs.
3. Room rates - Research the rack rates, as well as group rates. Call the toll-free line or reservations desk of the property or chain. This way you will know the "worst case" pricing. Always give conservative room blocks. If you block too many rooms, you will end up paying for them.
4. Managing the spending - Communicate your budget information to the convention services manager. His or her role is to work with you. Meet every day with your hotelier to review the master account. This will allow you to catch errors on-site. Always budget at least 10 percent of your expenses as "contingency." This will take care of unforeseen costs such as labor strikes, bad weather, overtime, extra postage and mailings, phone and computer hookups, cancellation insurance, speaker substitutions. Limit authorized signatures, and don't accept charges signed for by unauthorized people.

Food & Beverage Cost Cutters
1. Deal with the chef directly. - In addition to the F&B manager talk to the chef. Challenge him or her to work with your meeting's goals and concept. The chef will know what is in season and what is grown or produced locally, and can be very creative if given the opportunity.
2. Ordering - Order as much as possible "by consumption." Uneaten food and drink can be returned and not charged. This works well with soda and packaged foods, like potato chips. Buy your coffee, tea, and decaf in bulk or by the gallon, if at all possible.
3. Breakfast - Instead of hot breakfast, serve an extended continental breakfast by adding fresh fruit, yogurt, and cereal to the regular offerings. Cut down on portions. Cut danishes and doughnuts in half. Offer mini-muffins, mini-doughnuts, mini-danishes.
4. Lunch and Dinner - Use sit-down meals, which can cut food preparation labor costs as much as 20 percent. Skip the dessert, salad, or soup. Dessert can be served at breaks. Consider box lunches instead of holding a formal, sit-down lunch.
5. Other - Ask which other groups are using the hotel at the same time. You may be able to have the same menu, thereby gaining economies of scale that can be passed on in cost savings to you.

Sales is the engine that drives the revenue and companies are always looking for ways of making that engine more efficient. Group selling offers the huge advantage of being able to address multiple customers through one presentation and still be in a face to face situation to sell each one individually. During an economic downturn, reducing group selling costs helps your company's bottom line. These tips can reduce your costs and make your events more successful.

Please feel free to contact Janice Bays or me if you have questions.


Thanks

John

John Maver
President
Maver Management Group
(925) 648-7561
Maver Management

Group Sales Cost Cutting Best Practices – The Overview

Sales is the engine that drives revenue and companies are always looking for ways to make that engine more efficient. Group selling offers the huge advantage of being able to address multiple customers through one presentation and still be in a face-to-face situation to sell each one individually. Reducing group selling costs and becoming more efficient helps your company's bottom line both from the revenue and the cost aspect. The group selling situation can be defined as anything from a luncheon or a face-to-face meeting with several key customers to a major exhibit at a convention. The principles are similar, only the execution changes.

The Maver Management Group has been working with Janice Bays, President of Meeting Management Associates, Inc for over 20 years. We have benefited from her expertise, as have all of her clients. Janice has worked with Fortune 500 clients, down through startups with very limited budgets. Janice has contributed her thoughts to this article and she knows her stuff. If your company has a full meeting/convention planning staff, these tips may be a good refresher. For those companies who do not have the staff, these tips can cut your costs. In either case, after you read this series of articles, feel free to contact Janice and learn what her company can do for you to make your group selling situations more efficient and effective.

Strategies That Save Dollars
1. The Plan - As in all cost cutting and program effectiveness, it starts with the plan – the right plan. How is the company’s overall business plan best executed in the group selling situation? Having the right plan enables you to understand up front what is required to be successful and what can be eliminated. This is the essence of best practice cost cutting. We have published a number of other articles on this blog for help in creating the right plan.

2. The Target Audience - Who is the target audience and exactly what do you need to motivate them to take the desired action? If you are looking at national conventions, you could define your audience as all the convention attendees. Don’t! Look more closely and identify the high potential people or companies within the group and find the means to target them.

3. The Message - This flows from the company’s overall strategic plan and positioning. That will keep the message consistent and will avoid costly graphics changes. In the group setting it has to be concise and crisp and is part of the overall “atmosphere” that you are creating. Research show that it takes on average 7 selling presentations to make a sale. Your audience will not tire of your graphics, display or message, since they are not exposed to it continuously. Sales personnel may tire of the message and if so rotate the sales personnel so they don’t wear out.

Outsourcing – Expertise and Cost Savings
1. To use or not to use - Both large and small companies use outsourcing for group selling as a means to increase effectiveness and keep costs under control. Meeting Management Associates (MMA) is one of the full service planning and meeting/convention management companies. They help translate the overall business strategy into the group selling strategies and then handle the management of all aspects of the meeting or convention. There are other suppliers who handle specific elements of the process and will need to be co-ordinated.

2. Single source or bid - Companies like MMA provide the best results when used as a single source supplier. It enables them to be completely open and in lockstep with your needs, as an extension of your company. Of course, they bid out services for hotel and travel and are able to negotiate high value and lower cost alternatives. Cost is definitely an issue, but not the only factor to be considered. You want the best value and what meets your goals and objectives rather than the cheapest.

3. Communication - An important element in all of this is good clear communication. Time must be spent with your outsourcing partners so that they understand your objectives and the role that they play in achieving them. Then their expertise can come into play more fully. Implement a check list that causes you and your outsource partner to communicate on a regular basis.

Contract Cost Cutters
1. Your value - Develop long-term relationships with properties and chains you use often. Negotiate volume discounts. Prepare a detailed request for proposal. Communicate the value of your meeting.
2. Negotiation - You may feel that the hotel holds all the power, but that is not true. Everything is negotiable. Negotiate sliding-scale rates with the hotel. Negotiate no deposit - or at least that the deposit will be placed in an interest-bearing account. Ask for everything and anything that you want right up front, such as 1 per 40 rather 1 per 50 for comp rooms or a number of upgraded rooms at the negotiated rate for your VIPs.
3. Timing - Work with hotels to fill their "hot dates," or meeting space "holes." Though the low season seems to be getting shorter, try to schedule meetings in the least busy times of the year for that specific area. Be flexible with your arrivals and departures.
4. Cancellation - Make sure the contract's cancellation clause is reciprocal. What if the hotel is undergoing major renovations during your event? Or if there is a change in management?
5. Signing - The biggest risk to your company can be in the contract signing. Never sign a contract unless you agree with it in its entirety. Cross out or edit clauses with which you do not agree, initial them, and get the supplier to initial his or her agreement. Pay attention to cutoff dates and attrition clauses. Keep in regular contact with suppliers even after the contract is signed. Things and events can change the meeting opportunity drastically.

These tips provide an overview of some cost cutting ideas for group selling situations. There is a follow up article that details more specifics. It can help you and your company achieve better results and cut your costs.

Please feel free to contact Janice Bays or me if you have questions.

Thanks

John

John Maver
President
Maver Management Group
(925) 648-7561
Maver Management

10 Ways for Nonprofits to Cut Costs

Nonprofit World published an article on Ways to Cut Costs. We have adapted some of those suggestions based on the work of Maver Management Group with a number of ministries in the San Francisco Bay Area.:

1. Make maximum use of your Board of Directors.
Make sure that your Board helps you raise money and also save it. Ask them to make use of their own contacts to find individuals and businesses that may be willing to donate the goods and services you need or to be sponsors for your projects and events.

2. Make extended use of your volunteers.
You provide them with an opportunity for significance in their lives. Let them enjoy that to the maximum. This will mean allowing them to go beyond just the simple tasks that they might ordinarily do to reach out to others.

3. Piggyback with local businesses.
Ask businesses in your community if you can include your fundraising appeals in their mailings. It gives them a chance to do some good and provides your organization with leverage and cost savings for your fundraising.

4. Reduce cost of mailers.
The paper you use in your mailings can represent up to 30% of the cost of your print job. Switch to inexpensive paper. Use lower-weight paper to reduce your postage costs. Bundle with other non profits to take advantage of multiple lists and combinations.

5. Adopt teamwork, cooperation, and collaboration approaches.
You can team up with other organizations to buy supplies and even insurance. You might decide to share office space and equipment. You can hold joint meetings and programs.

6. Seek out low-cost marketing and public-relations techniques.
Write letters to the editor or provide guest columns on important issues that your organization addresses. Find local ad agencies to see if they will create public service announcements for you.

7. Seek out donation of materials that you need.
Companies are cutting back and there are surplus items that can directly offset many of your expenditures.

8. Save money on training new people.
Use your volunteers and their connections. Use videotapes, computer based training programs, books, and a personal mentor to cut down on training costs. Most people enjoy self-paced learning and they will get a lot from a mentor assigned to help them.

9. Save energy.
Set back temperatures during times when your facility is unoccupied. Turn off lights and equipment when not in use. Install more efficient lighting. Indoctrinate employees with the importance of saving energy. Monitor costs and let everyone know how much is being saved.

10. Audit the necessity of every activity your organization does.
What would happen if you stopped doing it? Does the reason you started that activity still make sense? Can someone else perform that activity at less cost?

Non profit companies face a different set of circumstances and often rely on help from the outside. If you need help in identifying opportunities within your company on how to impact your bottom line through improved productivity or cost cutting, contact us.

Thanks

John


John Maver
President
Maver Management Group
(925) 648-7561
Maver Management

HR’s Role in Cost Cutting and Controlling Costs

People drive the business. They provide the ideas, the plans, the execution and the energy, along with a lot more. Getting and keeping a talented employee base is critical for future success.

The HR function, if it is used properly, is a tremendously important resource in the business equation of getting and keeping a company profitable. It directly influences the twin goals of increasing productivity and minimizing expenses.

Executives focus primarily on their core competencies since that has been what has made them successful personally. In order to make the company successful, this has to be extended across the organization. Some of the best practices for HR’s role in increasing productivity and controlling the human capital costs are below.

1. Hire the right person.
Jim Collins in Good to Great says, “Think of the small amount of investment involved here compared to what it costs if you hire the wrong person.” Most companies hire based on skills listed on the resume and interviews by inexperienced interviewers. That’s a mistake. To find top talent, first you have to define superior performance. Then you’ve got to take that definition and apply it to performance-based behavioral interviewing and other strategic recruiting techniques to attract the best candidates. You can teach the job but you need to hire the talent.

2. Incent improved performance in productivity and cost control. Both negative and positive reinforcement will motivate people to perform. But as the saying goes, you get more with sugar than you do with spice. The “sugar” you offer can take many forms, such as:
• Implement pay-for-performance programs.
• Eliminate the guesswork on competitive compensation—use compensation surveys.
• Offer flexible work schedules.
• Ask your employees for ways to cut costs. Generally speaking, employees know their jobs better than anyone else.

3. Retain good employees through competitive benefits, communicated effectively.
Like most executives, you want to know that you aren’t paying more than you have to, but enough that your employees feel motivated to perform. Offering the right benefits package can help you achieve this goal. Benefits differ between small and large employers. The standard list of benefit categories may look the same, but the plans, features, and services offered can be very different and so can the costs. The standard list would include insurance coverage for medical, dental, and vision care as well as short and long-term disability, life, accidental death & dismemberment (AD&D), and more and more frequently, long-term care. Get some expert advice on what is needed for the basic plan and how to cost effectively customize it to your employees.

4. Plan and work smarter. Make sure in the execution of your plan that the focus is on the high leverage areas. Even out customer demand whenever possible, so that you can eliminate all overtime and the extra costs. It is amazing how many “extra” non-revenue adding activities exist in all companies.

Above all, communicate, communicate, communicate! This may come as a shock, but even the people who write benefits materials don’t read their own materials. Why? Because traditional benefits booklets tend to have all the appeal of cardboard. Invest in a communication program that includes well written, succinct, compelling, and palatable descriptions of your programs as well as four or two-color professional printing. In addition, hold regular employee meetings to roll out new plans or just help employees understand the value of their benefits and how to use them, including how to keep costs low for themselves and the company.

Once again, while people are important, having the right people doing the right activities in your business plan is critical. If you need help in identifying opportunities within your company on how to impact your bottom line through improved productivity or cost cutting, contact us.

Thanks,

John



John Maver
President
Maver Management Group
(925) 648-7561
Maver Management

Cost Cutting Tips when laying off employees in a social media world

The economic downturn has resulted in a number of companies being forced to use layoffs as a cost cutting measure. In a world where anyone has access to the internet and can publish negative feedback about their former employer, and does, how you manage this process is critical. It takes just a second after someone has walked out the door for them to post negatively on Twitter, facebook or their blog, and it spreads from there. This will have major impacts on employers for years to come. Blog posts, tweets and video content all remain in search engine caches for a very long time, if not forever!

Here are some tips to avoid these potential problems in a social media world:
1. Make sure you have a plan and that the plan ties directly to the overall business plan for the company. You don’t want to lay off the wrong set of people.
2. Remember the jobs you are cutting have people in them. Treat them with respect. This could be you one day and if you don’t do the lay off correctly, it probably will be you and soon.
3. Be open and fair from the start. People want to feel valued particularly in tough economic times.
4. Do it quickly. It only causes pain to the employee and the company to drag it out. It also provides more time for the former employee to publish negative articles or posts.
5. The employee reaction may not be rational or logical, based on information given to them. They will instead fit the layoff to their own experience or what they have read elsewhere. This usually means they will react poorly, initially. Providing the employee with additional support can also make the experience more positive.
6. Provide employees with some advice about being careful if venting online. The perspective can help avoid legal battles in the future.
7. Expect things to be blogged, tweeted, and generally discussed by current and former employees. Monitor the internet to see what is being said. Allow people to vent but if needed, gently correct the messages if they are blatantly wrong.
8. Communicate with the employees who are leaving as well as with those who are staying, but do so honestly and openly.
9. Setup an internal wiki to allow the people leaving to document their knowledge in a central location. This way you might collect some of the knowledge that is leaving before it leaves.
10. Communicate to your customers, suppliers, media, analysts and blogosphere what is going on and why.
11. Highlight the other cost cutting measures that the organization is taking to show layoffs are one of the last resorts.
12. Make sure you pay severance packages fairly and on time. If you fail to do this, you can guarantee that the company and you, personally, will have VERY negative press.

Most of these are common sense and you may already have done them. Good for you. If not, call us and we can help. We have experience in all of this.

Thanks

John

John Maver
President
Maver Management Group
(925) 648-7561
Maver Management

Merry Christmas

When I'm worried and I can't sleep
I count my blessings instead of sheep
And I fall asleep counting my blessings

When my bankroll is getting small
I think of when I had none at all
And I fall asleep counting my blessings

I think about a nursery and I picture curly heads
And one by one I count them
As they slumber in their beds

If you're worried and you can't sleep
Just count your blessings instead of sheep
And you'll fall asleep counting your blessings

Many of you will recognize the song above from the movie White Christmas. This has been a favorite movie of our family for many years. Among other elements it tells of love, loyalty, celebration and the ability to find a way through hard times. It encourages hope. We are thankful for hope. It is difficult to crush this feeling more than just temporarily. Somewhere, deep inside, is the belief and anticipation that things will get better. And while not everything works out the way we want, things do get better.

Although this year has been a tough one for many of us, looking ahead are better times. Hope!!!. We are grateful that our family members are all relatively healthy and that communication abounds, even though great distances separate us. We are blessed with amazing, wonderful children and grandchildren.

The Christmas season joyfully celebrates the birth of Christ. In addition to this miracle, it brings with it renewed friendships and the exchange of glad tidings among friends and family. We are thankful we live in a country with freedom, opportunity and almost unlimited resources. We are privileged to have strong family ties based on love and respect. We cherish you, our wonderful family and friends, who bring us spice and affection and we appreciate the magnificence of our lives more than ever before.

As we move from Thanksgiving to Christmas, our sense of thanks increases. We are also blessed with the greatest gift of all, Jesus. May the love of this gift surround you and all close to you during Christmas and throughout the coming year. God bless us everyone!



John

John Maver
President
Maver Management Group
(925) 648-7561
Maver Management

Cost Cutting Balance

Cost cutting, cost reduction, consolidation or cost management have become central planning topics in all competitive markets. Most companies have trimmed all the fat and are working “close to the bone.” New companies have either gone out of business or have cut back on plans, dramatically changing the business model with which they launched. An established company in a maturing market is likely to see the best return from cost cutting.

As we have written many times, having the right plan is critical for all companies.

While cost cutting and basic survival is at the top of each day’s agenda, it has to be balanced to some extent with spending/investments that will grow the revenue line. This is typically a mixture of selling more to existing clients (market penetration) finding new clients both locally and internationally (market development) and extending your brand’s equity creating new profitable products and services (product development). This isn’t new but is almost completely overlooked with the focus on cost cutting. Success in managing the costs can improve cash flows which can be used to invest in building revenue.

The news is full of stories about companies that have sought a major, single solution, with the obvious “nuclear” option of outsourcing and/or dramatic cuts in personnel. This has surface advantages, but often creates crucial competitive problems such as:
• Undermining core competence
• Decreased speed of response to market demands
• Increased problems of quality control
• Decreased customer service and resulting reduced customer loyalty
• Elimination of product support and upgrades

Often, companies by attempting to make big changes miss the advantages of applying a continuous cost management discipline. A step by step approach will create an environment where cost management is continuously incorporated in company decision making. By making cost cutting and then cost effective spending part of the culture, the resources can be much more effectively utilized to drive revenue on an on going basis.

We recommend developing the right plan, of course. The plan has to have a balance, using the funds to drive revenue. Without the revenue, the company is doomed.

Let us know how we can help. We are experienced in helping companies thrive and not just survive.

Thanks

John



John Maver
President
Maver Management Group
(925) 648-7561
Maver Management

Cost Cutting – How’s that working for you?

It’s not just Dr Phil. who is asking the question, “How’s that working for you?”

We see cost cutting almost everywhere as companies attempt to pare back to salvage some of their profits. We see the dramatic reductions in force and the increases in unemployment numbers. We see the projects and initiatives being half funded and abandoned and know that the result will be substantial revenue losses in the future. We see the scramble to reorganize with the lower level of resources. Yet, we see expectations of output remaining high.

And we ask, “How’s that working for you?”

For most companies, the people leading the cost cutting are the same people who have led the business and their expertise is not in the cost cutting and re-planning. The most notable in the news today are the big three automakers. They have great plans to cut people and shut down plants and are underway with their actions. How do you think they will do? Do you have great confidence that they will choose the right plan and put best practices into play? The stock market doesn’t think so and is hoping that when the government comes through with the bailout, a government oversight group will be appointed too. For those of us in the business world, that is clearly the blind leading the blind.

How’s that working for them? Not well!

It’s not just the huge corporations who are scrambling. Many small and medium sized companies are struggling too. They are doing their best to cut costs and stay alive and many are failing. Additionally, they have lost their focus and are no longer operating as a unified organization.

How’s that working for them? Again, not well.

With all of the money that is being spent in the cutting of costs, one would think that some of it would be allocated to bringing in some cost cutting expertise. These resources have the knowledge and the experience in cutting the right costs and then refocusing the company to use the remaining resources in the most effective and efficient manner. Unfortunately, this expertise is viewed as a cost in and of itself and cut first. In reality, it is the best investment that could be made since it can return its value many times over.

We have written a number of articles on best practices for cost cutting and the best implementation programs. They all start with setting up the right plan based on the company’s goals and objectives and scaled according to the resources available. It is this planning and then the execution of the plan that is so critical. Properly done, not only will the company be able to survive the economic downturn but be in a position, with its best people intact, to move forward when the economy improves.

How’s that working for you? If your response is not, “Its working well,” then contact us. We can help.

Thanks

John

John Maver
President
Maver Management Group
(925) 648-7561
Maver Management

Cost-Cutting Tips for the Small-Business Owner

Cash flow is important for any size business, but particularly so for small business. Small fluctuations can mean the difference between making payroll and going out of business. The downside penalties are severe. Hence, one of the keys to running a successful small business or home office is learning to control costs and in this economic climate, cutting costs. Even the smallest expenses can quickly add up, cut into profits and turn into losses. Many small business owners know where their money comes from, but are not as clear on where it goes. This can have a significant impact on their business cash flow.

Here are 7 tips for small business owners to control and cut costs.

1 Review your expenses regularly. You should do this in detail at least once a month and on the major areas once a week. It is critical that you do this personally. While your accountant or financial manager may assist, this is the lifeblood of the business and needs your personal attention. What gets inspected becomes what is expected.

2 Buy last year's model of furniture, computers, PDAs, phones etc. There is always something new with more bells and whistles. Be careful that you don’t get misguided into “needing” what is hot. With all the new models there will be something old. If you wait until the end of the year or for sales throughout the year, you can save on your office needs.

3 Buy in bulk and buy ahead. By buying commonly used items in large quantities, you can save a great deal. Replenish your supplies before you run out. Thinking ahead, and thus buying ahead, gives you a chance to comparison shop and take advantage of sales.

4 Buy store brands instead of national brands. In many instances, these brands are manufactured by the national brand companies but don’t carry the large marketing and sales overheads. Having spent the bulk of my business life with national brand companies, I can tell you that the current quality of many products is excellent. These can offer savings of 10-20%.

5 Take advantage of discounts. Professional and trade associations often offer their members discounts on insurance, travel, shipping and other common expenses. Similarly, some credit cards, like the American Express Corporate Card for Small Business, may get you discounts as well.

6 Save on direct marketing costs. Mail costs for your business can add up fast. To save money, use postcards or consolidate shipping. You also can buy or lease a postage meter or get a mail scale to eliminate overpaying. If you send out much direct marketing materials the savings can be substantial. There are also companies that pick up bulk mail, sort it and deliver it to the post office and still save you money. Check it out.

7 Save on employee costs. For most firms, this is the largest or second largest expense next to the product costs. Consider temporary help or contract help. While the hourly rate may be higher, you only pay for the hours you use. This can bring with it expertise that you don’t have and training that you don’t need to do. Finally, the benefit costs are eliminated.

If you run a small business, take a look at these ideas and let us know how much you save.

Thanks

John
John Maver
President
Maver Management Group
(925) 648-7561
Maver Management

Social Media and ROI

Traditional media broadcasts brand messaging to customers via interruptions in programming – TV and radio commercials, magazine ads, billboards. The expectation is that reaching customers enough times with a message will cause them to buy more products or services. While this has been the norm for a long time, it is based on one-way communication. It doesn't listen to or engage the customer by letting them participate.

Social media offers businesses an opportunity to start conversations with their customers about their brand. It lets them ask questions, get feedback, solve customer problems, and find new product ideas. It reaches the customers where they live on Facebook, MySpace, Twitter, Blogs, Wikis, RSS feeds and Podcasts. Social media allows business and customers to create a brand together. Hopefully guided by the company but not dictated.

Many companies are starting to get the message that social media is an effective way to reach more of their customers. MarketingSherpa shows that marketers are significantly increasing their spending on social media (Web 2.0) while at the same time drastically cutting their traditional media campaigns. In a down economy, the technologies in social media help companies cut costs and still see their customer base increase.

Every executive wants to know what ROI might be expected from diverting funds to social media instead of traditional media. My good friend Lewis Green of L&G Business Solutions has written a great article Don't Say ROI Unless You Mean It. It explains ROI and Value including the aspects of social media that contribute to them. We would follow that up with some data in support of it in the following Survey says: b2b marketers see ROI in social media. Request the full study.

Most executives are new to this medium. Most need expert help to get started and to create the right strategy and plans. We recommend Thought Labs, a technology innovation company, that has had great success with several social networking platforms such as Facebook and Bebo. They have translated their expertise into building a strong stable of clients who seek to utilize social media as a means to drive business success.

Social media is the wave of the present, not the future. In these tough economic times as companies struggle to get profitable and stay profitable, cost effectiveness is paramount. We can help your company cut their costs and improve the profit picture. Social media is just one way.

Thanks

John


John Maver
President
Maver Management Group
(925) 648-7561
Maver Management

Core Competencies of the CEO

What is required in a CEO in order to be successful? What enables the CEO to lead their company and drive profitability and company value in times of economic downturn?

CEO turnover continues to rise dramatically and this is especially apparent in times of market slowdown. CEOs are in office for a shorter and shorter time. A Booze Allen study in the 2,500 largest market cap companies has shown that in a decade, the average tenure has been cut by more than 2/3rds from 9.5 years to 3 years and the turnover is less and less at the CEO’s choosing. The non voluntary reasons for leaving have skyrocketed from 27% in 1995 to 70% in 2006. Now in 2008 with the crisis in our economy, the rates have grown even higher.

The reasons that CEOs are forced to leave are typically because they are weak at some of the necessary competencies and often have not been evaluated on them when they assumed the job. The difficulty in the CEO position is that a CEO needs to be fairly well rounded in a wide range of competencies. Flat spots will show up and can be disastrous.

What does a well rounded CEO look like? It goes without saying that leadership is a core competency and here are 10 additional best practice core competencies for CEOs:

1. Vision - The CEO, possibly with the help of his executive team, creates and communicates a compelling and inspired sense of core purpose. This is based on the vision of the future, not the reality of today.

2. Strategic thinking- Once the vision is created and understood, it is essential to put together a workable plan to get from current to the desired goal. The effective CEO can see ahead clearly and anticipate consequences and trends accurately, has broad knowledge and perspective and can translate this into a plan based on key strategies that will provide long lasting progress for the company.

3. Culture – The CEO is responsible for creating and maintaining the desired culture and environment. If vision is where the company is going, culture and values tell how the company gets there. Values outline acceptable behavior. Work gets done through people, and people are profoundly affected by culture. Culture is built in many ways, and the CEO sets the tone. His every action—or inaction—sends cultural messages.

4. Communication. This skill goes further than being able to articulate the company's values and vision. It is about aligning people to the right direction and the specifics of their role in driving the business forward.

The CEO must communicate effectively not only internally but externally too with the Board, the financial community, customers, suppliers and the community. Some may argue that effective communication with the Board is the primary core competency. Weakness here is certainly going to be trouble.

5. Building an effective executive team - Getting a management team and different functional areas in concert and working together is an important skill. The CEO's responsibility is to manage the business in such a way that departments and individuals work together to fulfill the vision. That requires putting the right team together, motivating them and providing development opportunities so that they grow as the business grows and they can handle increased responsibility. A CEO needs to be focused on how to optimize people.

6. Business acumen - The CEO must have the following attributes:
- Knowledge about trends, practices, and policies affecting the industry and business.
- A firm understanding of competitors and a good grasp of effective strategies and tactics that work in the marketplace.
- Continuous learning: A quick, relentless, and versatile learner. Can analyze both successes and failures and learn from the experience.
- Ability to sift through vast amounts of information, solicit opportunities and possibilities, and communicate effectively to others.
- Ability to blend intuition with analytical skills.

7. Flexibility and handling risk - The CEO has to embrace ambiguity and uncertainty, coping with and embracing change and using it to the advantage of the company. They are able to act without having the total picture and able to adapt to dynamic environments with ease and speed. CEOs take and manage appropriate risks and use them to the organization's advantage.

8. Customer focus - CEOs have a clear understanding of customers' needs, preferences, interests, timelines and decision-making criteria. Focusing on meeting those needs and doing so profitably means success for both the company and the customer. Long-term customer satisfaction builds loyal, repeat customers.

9. Financial acumen. While much of this often falls to the CFO, the CEO must have solid financial acumen, such that they understand the key leverage points in the Income Statement and the Balance Sheet as well as the critical aspects of ensuring short-term cash flow and long-term profitability. It is often said that cash is king and certainly cash flow is key to success.

10. Use of current Best Practices. This does not mean jumping on fads but rather the ability to capitalize on technology, outsourcing, managing the remote work force, and social networks for example. Included in this would be identifying and using resources such as specialists, consultants, etc. The great CEOs have always been able to bring in the right people at the right time to help drive profitability.

The CEO’s job is not an easy one. It is complex and calls for multiple skills. As you review the list above, how well do you meet the criteria? How does your CEO?

We can help. Contact us for best practice profit drivers from the above set of CEO Core Competencies. We can bring the earlier articles on this site to life and make the impact specific for you. See number 10 above again.

Thanks

John

John Maver
President
Maver Management Group
(925) 648-7561
Maver Management

Newton’s Unpublished Laws

Everyone is working very hard these days and the pressure is intense. Take a moment and appreciate some humor. Studies show that if you can find a laugh each day, not only will you live longer, but you will enjoy your life much more.

I found this on several blogs in slightly different forms. I suspect that Newton wrote these after he was hit in the head by the apple.









1. LAW OF QUEUE:
If you change queues, the one you have left will start to move faster than the one you are in now.
2. LAW OF TELEPHONE:
When you dial a wrong number, you never get an engaged one.
3. LAW OF MECHANICAL REPAIR:
After your hands become coated with grease, your nose will begin to itch. In the kitchen this applies to handling flour, meats and anything else that covers one's hands
4. LAW OF THE WORKSHOP:
Any tool, when dropped, will roll to the least accessible corner ( a bit related to the law of entropy).
5. LAW OF THE ALIBI:
If you tell a friend you were late because you had a flat tire, the next morning you will have a flat tire.
6. LAW OF THE RESULT:
When you try to prove to someone that a machine won’t work, it will!
7. LAW OF BIOMECHANICS:
The severity of the itch is inversely proportional to the reach.8. THEATRE RULE: People with the seats at the furthest from the aisle arrive last.
9. LAW OF COFFEE:
As soon as you sit down for a cup of hot coffee, your boss will ask you to do something which will last until the coffee is cold.
10 LAW OF THE BATH :
When the body is immersed in water, the telephone rings.
11 LAW OF ENCOUNTERS:
The probability of meeting someone you know increases when you are with someone with whom you don’t want to be seen.

Have a great day. Smile at someone and enjoy their return smile.

John



John Maver
President
Maver Management Group
(925) 648-7561
Maver Management

10 Steps to Implementing Best Practices Cost Cutting

Your company may have completed the first round of cost cutting. Now what??? Unfortunately, just cutting costs isn’t the key. It is cutting the right costs and having the company be able to continue to progress.

Very few companies actually took the time needed to update their strategic business plan before they cut. The pressures were on and action had to be taken - they thought. Many took a cursory glance at the plan, but most didn’t review it in depth. As a result, these companies have made cost cuts that in many instances will have the opposite effect of what was intended on revenues, operations, the employees and the projects underway. What seem to be small cuts in one department can totally undermine the effect of another department.

Other companies reviewed their plans and updated them to reflect the current economic situation prior to making the first round of cost cuts. However, many are finding themselves with the same list of projects and initiatives as before. But with fewer resources to support them. It is difficult to kill projects.

Yes, there are some companies that had prepared in advance for the downturn and had programs in place at reduced spending levels to address the needs. Congratulations to them. They will do well.

However, if your company is part of the great majority and is in the first two groups, here are some best practice steps to cost cutting and staying alive.

Step 1
In all cases it is critical to start with your business plan. Review the complete business plan with the entire executive team. Make certain all understand the direction of the company and what are the high leverage items that are necessary to achieve the goals. These elements need to be correct before you should proceed.

Step 2
Review all of your current operations and staffing. Determine what is critical versus what has always been or what is nice to have.

Step 3
Prioritize all of your basic business operations that are essential to keep things running. Remember that this is cut back time and you want to ensure that you are cutting the right elements.

Step 4
List all of the projects and initiatives currently underway and upcoming. Determine the resources required, the benefit expected and the timing of resource requirement and benefit delivery.

Step 5
Prioritize all of the projects that were identified above. Realistically, there are only going to be three or four major projects that will make a significant difference to the results.

Step 6
Determine what can be delayed or cancelled without dramatically hurting revenue or customer relations.

Step 7
Allocate financial and human resources to the highest priority projects and to those the essential business operations.

Step 8
“Collect and pool” all of the remaining resources. If the resource isn’t being required, determine if some training can make that resource substantially more effective to you! If so, invest in the training, and then reassign the resource to a high leverage project.

Step 9
Review all of the operations and projects to determine ways that they can be accomplished with lower resource requirements. This is often a step where an outside resource can be extremely cost effective. Take the resources that are freed up and add them to the pool.

Step 10
Take the cuts now. The review of the strategic business plan, the prioritization of operation requirements and projects and the assigning of required resources enable the company to identify further possible reductions in costs and expenses without undermining the business.

If you are about to undertake cost cutting measures for your company, we can help you. We have a strong track record of success with many companies.

“The best investment we made at our company was bringing in expert outside help. The speed at which everything was accomplished and the ROI on the investment was significant.”
Robert Mander - CEO

Make contacting us Step 1.

Thanks.

John
John Maver
President
Maver Management Group
(925) 648-7561
Maver Management

Finding and Retaining Top Talent

Proper staffing constitutes 95% of the success of any company, yet few managers have ever been trained in how to do it. In today’s turbulent times, even fewer have the experience or the expertise. That is unfortunate, since with the staffing cut backs by many companies and the dissatisfaction at many others, there is a pool of top talent that could be available.

How do you know who and what to look for in this pool? Once you get them, how do you keep them?

It may seem simple, but it isn’t. It takes a great deal of thought and experience to be able to do it well. If your company doesn’t have this expertise in house, you would be well advised to make the investment and bring it in on a temporary basis. You will benefit from the assistance greatly.

Best practices would suggest these are the critical elements:
* Fully understanding the company’s strategic plan and the human capital needs to achieve it.
* Creating the right organizational design to meet the strategic plan.
* Identifying the skills, now and in the future, required to deliver the plan.
* Identifying the prime sources of talent with those skills.
* Strategically determining the “find, fill and fire” or “find, develop and keep” strategy.
* Selecting criteria for retention.
* Having a process that facilitates the valuing of prospects.
* Selling the company and setting expectations during recruitment.

Once you have the top talent, then what? How do you keep them?

Widespread research suggests that people do not leave organizations; they leave their managers. The implication of this finding is that managers who are respected and seen as supportive of the people who work with them are indispensable to successful organizations. Without them, competent people will leave their current organization in search of better treatment. The resultant costs of recruitment, engagement and subsequent retention can be enormous. Less tangible are the indirect costs associated with the loss of corporate intelligence and the impact on morale.

The characteristics of individuals deemed to have been exceptional managers:
-passionate
-have vision
-caring
-treat people supportively
-make work fun
-challenge people to be their best
-provide lots of feedback
-listen intently
-encourage teamwork

Traditionally, these skills have been labeled, somewhat pejoratively, as the "soft skills".

Managers who refine these skills will be seen as more authentic by those they lead. The outcome will be more people who feel that they are respected and valued by their managers. Under these conditions, people are more likely to be fully engaged in their workplace and to contribute their maximum effort for their manager. They are also less likely to shop the market for other opportunities.

Effective managers are indispensable to successful organizations. How do you stack up against these qualities? How do your executives and managers stack up? If you are having trouble attracting and retaining key employees, this may be the reason.

We can help you. Contact us to find out how.

Thanks

John

John Maver
President
Maver Management Group
(925) 648-7561
Maver Management

Increasing the Productivity Yield from Your Employees

In many of the articles that we have published here, we have commented on the need to have the right business strategy. While that is true for the overall business, it is equally true for how companies use their resources and in particular, their most critical resource, their people. Yet, all too often companies either simply promote people who are doing well in their current job or in these days of layoffs and job cuts, move a manager from one job to another. Both are often done without sufficient reflection on the how the talents of the manager match up with the new responsibilities or how the talents fit with the overall business objectives. It’s important to stay smart in the current economy. You must have a talent strategy aligned with your business goals to increase leadership effectiveness, improve team performance, and stay competitive.

How do you develop that strategy? Cathy Hammer, a fellow Principal in 4Views, has some thoughts based on extensive experience and success.

How is talent strategy related to business strategy?
One grows directly from the other. You start by looking at the overall business strategy and identifying the skills, relationships, and global knowledge needed to execute that strategy in the short and long term. The idea is to make sure you have the talent to cover where you are going. For example, there is a company in the Silicon Valley hiring more engineers than they currently need because of the shortage of major talent in that sector. They’d rather spend money now than be caught short. But having a strategy isn’t just about new hires. Gaps can also be covered with additional education, networking exposure, mentoring etc.

What can be done to keep the talent budget in check?
With the need for quality managers vastly outpacing available talent, it’s critical to identify and grow a solid percentage of your next generation of leadership in house. Having a clear articulated leadership pipeline has the added benefit of improving the retention rate of quality employees. They are more certain they have a future with you. In terms of outside recruitment, identify great potential employees and sources of potential employees even when they aren’t needed right now. Stay in touch with them and woo them so that they will be available to you when you are ready for them. This will save you opening a lengthy expensive new search every time you have a key opening.

What should people do about their training and development budgets in this economy?
It’s tempting to cut back on development in tough economic times, but look at it as an investment in your people rather than as overhead. People want to do a great job but may lack some of the skills or experience that are required to maximize their performance. The new generation of workers is more likely to stay in positions that value their professional growth. Find a means to give it to them. Reduce costs and capitalize on your own talent by implementing facilitated mentoring to transfer knowledge to the next generation of leaders. You don’t have to have the training function in house. The ROI on training can be significant if it’s the right training.

How do you know if you are getting this ROI?
It’s important to have an appropriate tracking mechanism for professional development that matches your business goals. Creating a simple chart matching what each candidate is learning to a specific business goal is a start. Having a replacement plan that clarifies your leadership objectives is another important tool. This way you are more prepared if someone in a critical role leaves unexpectedly.

How to put it into action?
Often the decision on talent management is held by the executive team alone. This misses the critical group of implementers the managers. Make them part of the process. Take a look your direct reports as a start and determine how they are matching up with the performance expectations you have set together. Then find the means to fill in the gaps either through training or if needed replacement. One weak performer can dramatically slow down an entire team.

Cathy has expertise in this area with executives and managers, as well as with their teams. Contact her if these ideas resonate with you. She can help you put this into action and increase the productivity yield of your employees.

Thanks

John

John Maver
President
Maver Management Group
(925) 648-7561
Maver Management

Urgent and Important

People today are overwhelmed with information. It comes to us in many ways because of today’s technology such as email, Instant Messenger (IM), or messages on multiple devices. We hear people ask the rhetorical question “where do I start, what should I do first”. Their rhetorical answer is always, “I do what is most important first.” But do they know what that really is?

Dr Margery Mayer is one of the Principals in 4Views , a consulting group focused on Planning, Process, People and Profit, a group in which I am also a Principal. In addition to having first hand business knowledge as a CEO and COO she is a behavioral scientist with a number of book publications. She has written a thought provoking piece that asks some additional questions about what we do and why? We are publishing it here but feel free to contact her directly to share your thoughts about this subject. It faces all of us.

"If you ask someone the difference between urgent and important generally people will say urgent needs to be addressed now but important is also important, hmmm. Compound that indecision with the fact that technology has blurred the lines between urgent and important. When that mobile device rings or sounds, we pay urgent attention. So let’s start with what is urgent, anyway? The Oxford Dictionary states that urgent means needing immediate attention, action or decision. It also states that important means having the ability to have a great effect. These two words seem to have different meanings, so why when a wireless device sounds do we consider it urgent and needing immediate attention?

It is amazing that even in critical meetings people take calls or check email. Why is the call or message more urgent then what is occurring at the moment? Have we allowed this technology determined our definition of urgency and importance and if so, why?

Perhaps it is because we are always on. Like it or not communication technology means that we are always on whether we use wireless or wired technology. We not only have access to information, but are also expected to be available 24/7 or have read emails or text messages that were recently posted somewhere. In one sense this is good because we can find critical information whenever we need it but it also means our companies know they can contact us any time as well.

How has the always on technology encroached on our work/life balance? Do we know where the line is between work and personal time? Has this been a personal choice or an unstated mandate from the company? What does this mean to the quality of our life and our ability to deliver to expectations? When do we take the time to recharge much like our devices do?"

Are you focused on what is important or are you swayed into handling what is urgent? Clearly urgent and important is number one. Just be careful about how much time gets sidetracked into what is neither urgent nor important. Share your thoughts with Margery.

Thanks

John


John Maver
President
Maver Management Group
(925) 648-7561
Maver Management

Cost Cutting Best Practices in a Tough Economy

When times are tough, companies want to cut expenses to help profitability. The measure of their business acumen during these difficult times, however, will not be the size of the cuts made, but the wisdom employed in making them. Companies often become “slashers”, cutting spending in just about every area and penny pinching their way through the downturn. Random slashing, however, should be cautioned because it could lead to a paper-thin workforce with limited resources, organizational “depression” that lends itself to a culture of fear and irrationality, and loss of the company’s strategic focus as a necessary stabilizing force.

Here are some best practice tips recommended by the Maver Management Group to our clients and used by many successful businesses.

First, it has to start with a sound business plan. Revisit the organization’s strategic plan to re-examine the future direction and the manner in which resources, such as capital or people, will be allocated in light of the current economic times. Most organizations develop a business plan that includes plans for resource allocation over time, as the organization becomes more financially sound. The right plan is even more important during the downturns as it will determine not only the success during this period but also the future success based on the decisions made. Maintain strict focus and avoid distractions. Be prepared to allow for a certain degree of tweaking, tinkering and testing on an ongoing basis.
There are some common techniques which can be used for strategic analysis. These include a SWOT analysis, which serves to detail the organization’s strengths (S), weaknesses (W), opportunities (O), and threats (T). Having an outside perspective can help companies see the big picture before they get deep into the details. Maver Management can help!!!

Second, the organization needs to communicate the strategic plan. This communication must be clear and concise. If business leaders are feeling very stressed about the company’s future, every employee will feel it too. Employees may start worrying about the stability of the company and will start looking for other job prospects. Covering up the situation only serves to push employees away even faster. Share the financial and let employees feel some “ownership” for the business.

Third, change the way people work. Instead of just cutting, look at the way people work and change the processes. The business plan can provide direction of what is actually needed NOW and not what was thought to be required in previous times. Identifying and focusing on the top priorities can reduce costs significantly. Since the employees understand the plan they can be significant contributors to the cost savings ideas. They may have ideas that will save costs by working in a different manner and not losing the impact of the work.

Fourth, outsource non core functions. According to a survey by Accenture, 80 percent of executives said their companies were able to cut costs, improve efficiencies, enhance customer service and revenues, or improve competitiveness with supply chain management initiatives. The survey revealed the integral role the Internet plays in supply chain management success. More than 70 percent see the Internet as one of the most important factors in facilitating greater collaboration with key trading partners because of the visibility it provides upstream and downstream in the supply chain. Creative partnering agreements that move beyond traditional time and materials agreements can be a means to identify more cost effective solutions. Suppliers can bring new expertise and insights.

Fifth, look at the proposed projects in a different way. A good project, plan or program is good even if you cannot afford it right away. Cut up a major project or program into more manageable bits, or less expensive steps. This strategy allows the company to stay committed to the program in a changed environment of cost containment. It may be possible to add ROI to a stalled plan or program from elements such as lower insurance, lower liability, less overhead and-hardest of all, lower losses. Companies often forget that a fully cut program takes with it the expected revenue and that hurts profitability too.

Sixth, reductions in force or staffing cuts are often necessary based on all of the elements above but should never come first. Look at the other elements first. The replacement costs and the lost IP from staffing cuts can be enormous. Lay-offs or salary reductions can definitely reduce overhead. The million-dollar question is: whose salary is the first to go? Strong-willed companies often realize that high executive compensation just doesn’t make sense during an economic downturn. This will be a thorny issue and can best use some unbiased help.

Finally, look to a reallocation of some of the costs to counterintuitive spending on the revenue side. Increasing expenditure when everyone else is rationing may seem contradictory to the recommendation of traditional cost-cutting. On further analysis however, there are three specific areas where increased spending is actually investing in your business’ future and can keep the organization stable. First, use technology to reduce overhead; second, invest in your employees and last, increase your marketing expenditure.

Here is a summary of costs you should be wary of cutting:
Accounting and audit services. In tough times, you must keep on top of your cash—and to do this, you'll need top-notch financial reports, timely tax filings and solid trend information.
Advertising. Advertising is your lifeline to sales. It helps keep customers informed about what you have to offer and helps you turn over inventory.
Collections. Turning your receivables into cash is one of the best ways to weather a cash crunch. Many of your customers may be short on cash too, and may want you to wait for your money longer than usual.
Customer service. Never skimp on relationship building. Decide how you can make your service more personal during hard times and you'll build a following of loyal customers when you need them most.
Information systems. Whether manually operated or computerized, good information systems help you monitor the health of your business, the work of your employees, the movement of your products, and much more.
Insurance. Insurance protects you from a wide variety of catastrophes, human and natural.
Intangible benefits.. Be wary of cutting relatively low-cost benefits that have high symbolic value for your employees.
Marketing. Marketing more broadly attempts to help you match existing and new customers to your products. Aggressive marketing might be one of the few ways you'll attract new customers during hard times.
Training. Unfortunately, managerial and employee development is often among the first expenses to be cut when money is tight. Yet, if you carefully select training programs, seminars, college courses, books and tapes that focus on business growth and productivity, you may find these training resources becoming one of your best survival tools.

If you are struggling to keep profitable, or frustrated by the cost cutting that you have to make, or wondering “now what” after the fat has all been trimmed, call us. We can help you meet your goals. We have helped many other companies and they sleep better at night now.

John

John Maver
President
Maver Management Group
(925) 648-7561
Maver Management

Leading and managing your remote workforce

By 2009, one-quarter of the world’s working population will be mobile workers, according to a July 2007 study issued by Cisco Systems Inc. That estimate is probably out dated and an underestimate with the rise in gas prices over the past year. Most of the clients we have at Maver Management Group have some form of telecommuting within their organization.

What are some of the best practices for leading and managing this type of workforce?

The process actually starts with hiring the right type of manager for mobile workers.
* They must be results-oriented rather than process-driven. That is, they need to be comfortable seeing only what mobile workers get done and not what they're doing moment to moment.
* Managers must be at ease with email, instant messaging, video conferencing and plain old phone calls as their means of communicating with mobile workers. They can’t walk down the hall and see what is happening.
* Managers must also be able to empathize with workers whom they don’t see often in order to know when someone is under stress or is feeling isolated from the team and in effect provide the management touch to them..
* Managers must know how often and in what tone to communicate with mobile workers. E-mails and text messages are flat and don’t often convey the right tone, if any.

Managers who are new to supervising telecommuting employees may have a tendency to micromanage. It can be due to a sense of lost control. Remote employees, in turn, can misunderstand this as a lack of confidence in their performance. With little face time to resolve misunderstandings or to address questions from either side, such issues can quickly cause tension in a company. Those in charge need to make sure all employees are delivering on their responsibilities and meeting deadlines, in a way that makes sense to managers who don’t get a chance to know them well in person. Managers have to become comfortable managing by end results, rather than by face-to-face interaction.

As for the workers, there are also some characteristics that lead to increased success. The Cisco Systems study identified several critical traits and of course it helps if there has been previous telecommuting experience.
* Independent decision-makers, like to work without supervision.
* Disciplined achievers, conscientious and self-motivated.
* Emotionally stable, with low levels of neuroticism and the ability to cope well with pressure.
* Creative, open-minded and seek a variety of experiences.
* Organized with an ability to put their fingers on what is needed without outside help..

Too often, however, companies have allowed or encouraged telecommuting without even considering several important questions that this practice raises. These include:
* How does having so-called virtual employees change the nature of your business?
* Who makes a good candidate for telecommuting?
* How do you supervise such workers?
* What other adjustments must you make if your business is to work most efficiently?
* What are the technological capabilities of their home office?
* Are there any limitations to the time the employee can spend at their desk and when can they be available for communication?

This clearly isn’t as easy as it may first appear. Here are a couple of additional tips on the human side of managing this workforce.
* A sense of camaraderie can obviously be difficult to maintain when workers are in different locations. Email and Instant Messenger are important communication tools, but they certainly don’t substitute for face-to-face interaction. Schedule face to face as often as practical. If possible, have employees come into the main office on a regular basis. If this isn’t possible use vehicles such as Skype, MSN or other face to face opportunities.
* Make sure to include work-at-home employees in career training and long term planning. Solicit their input in creative decisions. Most importantly, communicate often.
* Have remote employees participate in regular staff meetings by telephone conference call. And send frequent email updates to all parties involved in a project, so everyone remains in the loop. It can be very lonely out there.
* Recognize that there are going to be time differences, cultural differences and language differences, so be prepared to understand these in advance to avoid the pitfalls.

This is the way of the future and the successful companies will learn to handle this well. Let us know how we can help.

Thanks,

John

John Maver
President
Maver Management Group
(925) 648-7561
Maver Management

Project Management That Works

Companies translate their business plans into a series of projects. Some of the projects are relatively simple and others quite complex and involve multiple departments, activities and suppliers. But all need to be led and managed. Most companies have project managers to head up these projects. Actually, what is really needed to lead teams and manage projects are project leaders. Leaders who have the responsibility to make the team effective in delivering the objective of the project, solving the problem that has been identified and delivering the results that compensate for the expenditure of human and financial resources. Leaders!!!

The reality is most projects have become administrative nightmares for the project managers and team members. Instead of having a laser sharp focus on the project and what needs to get done, the focus has blurred and is buried in layers of administrivia. Gantt charts, status reports, teleconferences, updates, meetings and forms have become the norm. Some of these are necessary but are they effective? Tracking projects is taking up too much of the leader’s time. Often progress is less than originally expected and costs are higher.

So how do successful companies utilize project management effectively?

We have been working with a colleague who has a great deal of experience in leading projects and with project leaders. Dr. Margery Mayer is part of the 4Views, a consulting group, in which we also are Principals. She created a simple form that forces the thinking up front and keeps the daily focus on the action that needs to take place and not on the massive reports.

Margery created and has used the ONE PAGE Project Charter found below. It is developed by the Project Leader and Sponsor before the project gets started and is used by the leader, the team, the sponsor, the finance organization and anyone else involved up through the executive team, if need be, to drive action and maintain focus. You will note the emphasis on ONE PAGE. This forces crispness of thinking and keeps the team from being led off track by “add ons” or other distractions. It provides a snapshot of what is expected, when it is expected and the progress being made. If the team should fall behind, the appropriate action and effect on the project are clear. The team time is spent in thinking, and taking action for success and not in administrivia of report writing or updating. This does not replace Gantt charts as they have a more granular level of detail. This is a quick snapshot of how the project is progressing.

Feel free to copy the format and use it on your next project. We have seen success with it across a broad range of industries. Let us know how you use it.

Thanks.

John

Project Charter © Dr Margery Mayer

Project Name ________________ Date____Revision # ____

Project Objective
A concise simple statement of the objective of the project to ensure that everyone is clear and the information is consistent. This object should support the goals and objectives of the company.

The Problem
State EXACTLY is the problem that the project will solve.

Benefits
The specific revenue, profit, cost savings, efficiency increase etc that will result from this project

Scope
What is going to be included? This also may detail what is not included. The more extensive is the scope, the greater the cost and risks.

Completion Criteria
Clearly specify what will be achieved, what is the expected result or outcome.

Deliverables and Major Milestones
# ......When............... What............................. Date complete
1
2
3

Assumptions
This could include among other items:
* What resources will be provided and by whom? Availability of members, etc.
* Changes to scope or resources may incur additional costs
* Turn around time for approvals must be stated
* Escalation process might be identified

Resources
Responsibility .....................Name .........................Contact Info

Project Leader
Sponsor
Team
Analyst
Engineer
Programmer
Customer Service

ETC.

Definitions
For example
· Revisions – reexamine, alter or correct existing work
· Change orders – substitute one thing for another, add new ideas or concepts, variation on original work or idea.

Scope Changes
Changes bring costs and these are to be documented.

Change Orders

Change Order # ...................Date .....................$
1

2

3

John Maver
President
Maver Management Group
(925) 648-7561
Maver Management

The ROI on Staying Profitable

Today’s economy is tough. Many companies are facing revenue shortfall, profit squeeze, cost cutting, reductions in force and layoffs as well as the resulting increased stress throughout the company. Many companies are incurring losses and this isn’t just in the financial and automobile industries.

Long ago Samuel Gompers, the first President of the American Federation of Labor said “The purpose of business is to make a profit.” We may modify that a little today with our social consciousness, but it is essentially correct. Profitability is essential.

What is the ROI on being profitable?

We generally look at it in terms of the financials. What is the financial return on the investment to stay profitable? It is commonly agreed that it is significant. It impacts the internal programs, initiatives, operations, staffing and spending. It impacts the external aspects as well, in the relationships with our suppliers and the financial institutions, for example.

Beyond the financial aspect , there is a large emotional impact. A profitable organization tends to have a positive outlook on the day and the future. Employee moral is much better. Spending plans are tight and crisp to insure that the company remains profitable. However, when a company crosses that critical line and slips into unprofitability, there can be a sloppiness in planning. What is the difference between losing $100K or $150K or even much worse in the millions. This is a very dangerous situation.

How do you avoid slipping below the profit/loss line?

Unfortunately we find that many companies continue to operate in the same way over and over despite the fact that it isn’t working. They do not take the needed actions to change their result. Or equally bad, they do drastic cost cutting without a clear plan or assessment of the impact on profitability. Across the board cuts always lead to under-supporting key projects in other departments where the funding has remained.

Warren Buffet said “I am amazed at the number of supposedly smart executives who think they have all the answers and yet continue to make the same mistakes. Learn from someone with experience.”


Is this speaking to you? Ask yourself these questions.
· Are we less profitable today than we were last year or the year before? If we are actually unprofitable, mark this with red!
· Are there bottlenecks in our operations for which we do not have a solution?
· Are we in the cost cutting mode that may shore up short term profitability but could cause a much more significant impact across our organization as we go forward?
· Are we working harder and our results are lower?
· Do we question if we have a plan that really works?

If you answered yes to any of these questions you should consider getting some expert help. Our recommendation based on years of working with many companies is to divert a small portion of the company’s spending and invest it in obtaining a better way for you to do business and to stay profitable. The ROI can be considerable.

Don’t keep doing the same thing. The definition of insanity is doing the same thing over and over again, but expecting a different outcome.

If you are still wondering about this, contact us. We have a simple starter plan and it’s free to you.

John

John Maver
President
Maver Management Group
(925) 648-7561
Maver Management

Time for a tune up for you and your company?

You're back from summer vacation. But do you really want to go back to business as usual? Did you find that you were working much longer hours and not achieving all the results that you had wanted? Our experience has been that when the economy becomes tight, companies benefit from an effectiveness check. Much like your car does when you take it in for a tune up to make those adjustments that keep it running right. This covers the basic analysis of what is and what is not working, resetting the processes and reviewing the use of your resources to help cut costs and increase the output they generate.

That's why we're offering you our Back-to-Work specials. Choose one from these packages.

1 Analyze and identify key challenges that impact your profitability with recommendations for how to deal with them effectively and to navigate the profitability maze.
2 Document a current workflow process of an area that is problematic such as being inefficient or producing inconsistent results. The outcome will be put into a flow diagram format which will allow for better clarity, understanding and discussion.
3 Discuss and develop a management action plan to ensure employees understand their role in reaching key goals and get the information they need to perform.

Book before October 15 and our team will conduct two half-day sessions on one of these packages for $4,500 (25% off the regular rate). We will take the time to review the findings and recommendations with you and may even help get you started on the upgrades.

If you are outside the San Francisco Bay Area, there may be additional travel expenses if required. For our International clients, we will find a way for this to be a cost effective offer for you.

To reserve a time or for additional information, contact us at john.maver@the4views.com.

Make this a great end to 2008. Let us help.

John

PS How does 4Views fit with Maver Management Group? In addition to serving our existing clients, The Maver Management Group has joined a team of senior consultants called 4Views. By employing a systemic approached based on Planning, People, Process and Profits — the 4Views — we are able to serve our clients even more thoroughly and produce actionable, measurable and sustainable results. We can help you navigate through the profitability maze.

Your Friends at 4Views,
Cathy Hammer, John Maver, Margery Mayer

John Maver
President
Maver Management Group
(925) 648-7561
Maver Management

Your Competitive Advantage - Seth Godin

Seth Godin wrote “Your Competitive Advantage”on his blog earlier this week. It was so good and matches so well with what we at Maver Management Group promote with our clients that we decided to post it in its entirety.

People are fickle, but we're generally rational. When someone makes a choice (hiring, firing, choosing a vendor, buying a soda) they're using some sort of internal logic and reasoning to support that choice.

As a marketer, you win when they choose you.

So, why choose you?

The answer to that question is your competitive advantage. What makes it likely that more than a few rational people will consider their options and choose you or your company or your organization?

Truth: It's rarely a computerized cost/benefit analysis. Instead, it's a human choice.

When the factors that matter to me are processed through my worldview and compared against the options I'm aware of, I will choose you when your advantages are greater than the competition, provided I believe that you're worth the cost of switching.

Key points:
Matter to me: Not matter to you or to the next guy, but matter to me. That's all I care about. (Example: it might mean more to me that my friends use your product than it does that you're cheaper).
Worldview: Based on the way I see the world, the assumptions I make, the truth that I believe in. (Example: If I don't trust young people as a matter of course, I'm not likely to choose you if you're young, all other things being close).
Options I'm aware of: If I don't know about you, you don't exist.
Switching cost: The incumbent gets a huge advantage, especially in high cost/high risk/network effect instances.

Some of the ways you might build or maintain a competitive advantage:
* Access to hard-to-replicate Talent
* Hard-earned skills
* Higher productivity due to insight or organization allowing you to be cheaper
* Low cost of living for you and your staff allowing you to be cheaper
* Protected or secret technology or trade secrets
* Existing relationships (switching costs working in your favor)
* Virally organized product and organization
* Large network of users already and a network effect to support you
* Focus on speed
* Monopoly power and the willingness to use it
* Unique story that resonates with the worldview of your target audience
* Shelf space due to incumbency
* Large media budget
* Insight into worldview of prospects--making what they care about
* Emotional intelligence of your sales force or customer service people
* Access to capital and willingness to lose money to build share
* Connection to community

Not on this list, at least not prominently, are "we are #1!", "we are better!" and "we try harder." Cheerleading skills are not a competitive advantage in most settings. And, with few exceptions, neither is "we are new." Also, "we are better and I can prove it," is rarely a successful argument.

Here's what your board wants to know:
* What's your competitive advantage?
* Is it really, or are you dreaming it up?
* How long will it last?
* Can your competition copy it?
* Does it resonate with the part of the market that is looking to buy?
* Is the advantage big enough to overcome the switching cost?

Seth’s thoughts are very good. How does your company stack up on these ideas? Call us if we can help you define your competitive advantage and then drive it to increased profitability.

John

John Maver
President
Maver Management Group
(925) 648-7561
Maver Management

10 Tips for Profit Navigation Through Tough Times

1. Re-examine your business plan and re-check your business fundamentals. Many business leaders measure their success by how hard they work and whether there is enough money to cover payroll. That’s not enough, particularly in tough times. You have to have a basic plan and a plan that is working. A plan that is known and understood throughout the company. Re-examine it and make certain that it is built on the right fundamentals. You may be surprised at the opportunities that will be presented. Talk to your customers. They are probably hurting too and want your attention and leadership. They will remember you when things turn around

2. Focus on the short term. By focusing on business in the short term, there will be far less concern over the long term. Do what it takes to remain profitable. Negative numbers become an excuse for almost anything and you will not only lose focus, but you will lose more business. You know what has to be done. This time make sure that you actually do it.

3. Focus on leading your team. Re-examine your inner circle and make sure that they are the right people and have the talents and tools to make things happen. Delegate duties so you can do what you do best. This strategy might require an extensive role change, but will help to obtain more control for the future success of the company.

4. Focus on what is vital today. Cut what is non-core. Invest in what is. Identify your core competencies and build on them. Know who and what you are and be that. The one caveat is to keep the investment in R&D. That is the lifeline to the future. But make certain that your projects are focused and tightly controlled. Do the same for your sales force. Keep your producers, lose your losers.

5. Develop and use reporting systems daily. Key company goals should be monitored daily and weekly, rather than monthly. Plans cannot be implemented without reporting systems that track critical numbers. A daily review helps to measure and clarify where company efforts need to be enhanced, as well as holds each employee accountable for performance.

6. Control costs. This is different than just cutting costs as in number 4 above. This is making sure that you do what is important and do it most cost effectively. Find new and different ways to achieve the results at lower costs. Many businesses just cut. This causes revenue problems now and in the future. Simplify something. It will help cut costs. Complexity equals expense. Look outside for good partners both as alliances and suppliers. Leverage relationships to save money or make money. Look for technology based efficiency. Use the Web to cut costs and boost productivity.

7. Offer incentives to key business drivers. All employees have the ability to drive or stall the business. Make them “owners”. Create incentives that drive to the goals you have set. These should contribute to both the profitability and mission of the company and be tied to specific measurables that each employee has control over.

8. Hold a daily management meeting. A daily meeting creates the intensity and focus needed for business owners to identify problems and issues, before they get out of control. You can motivate, direct and reward.

9. Play to win. Don’t just play to survive, despite the negative atmosphere in the market. If you follow these guidelines, chances are that you will be able to win now and even more so when the market changes to be more positive. Play to win.

10. Get some help. Invest in someone short term who can help you navigate through these tough times and keep your business profitable. Hire a good consultant. Their experience and objectivity can show you ways to accelerate your positive business progress. The ROI can be astounding.

John Maver
President
Maver Management Group
(925) 648-7561
Maver Management

Positive Action in a Down Economy

Survey: Small business optimism at recession level
East Bay Business Times Tuesday, August 12, 2008
The National Federation of Independent Business’ monthly Index of Small Business Optimism dropped 1 point to a recession level of 88.2 in July. Half of the decline was due to weaker capital spending plans -- the lowest reading since 1975, the National Federation of Independent Business (NFIB) noted. Lower earnings, fewer job openings and lower inventory satisfaction also posted substantial declines.

These are the opinions of small business owners not the government economists, who by the way are still trying to find the right definition of recession and apply it. Those are the facts or at least some of them. Small business owners say we are in a recession and we are.

It is important to realize that this recession is different than previous ones. It is personal. What do I mean by that? Previous recession times were characterized by the dot com bust. That was for the “crazy” people who invested only in dreams not reality. Or it was characterized by the Enron, Arthur Anderson, S&L, WorldCom troubles where the issue was crooked people at large corporations. But this one is personal. It is my house that is worth less. It is my gas that costs so much. It is all of my bills that are so much higher. It is these issues that constrain my personal and business spending.

“So what?” is a favorite question of a friend of mine who speaks to hundreds of people every day and helps them to see the need for action. The rest of the question really is “What are you going to do about it?” This is a personal problem and you will need to have a plan to survive.

Many companies and most small businesses are cutting back. They are “hunkering down” and not investing. How smart is that? For some that may be the only way, but only for some.

“Sometimes the best way to deliver a punch is to step back. But step back too far and you ain’t fighting at all.” Eddie Dupris (Morgan Freeman) in Million Dollar Baby

There are many companies that are investing in their future. They see this as an outstanding time to develop the plans, set in place the processes, get the right people and do it at bargain prices that will drive growth and business revenue for years to come. NFIB said outlined gains in expected real sales, business conditions and the percent of owners saying this is a good time to expand.

So what are you doing in your company? Are you adopting the “deficit thinking, cut back” approach? Or are you adopting the “lets build a competitive advantage as we come out of the recession” approach? Warren Buffet and other very smart investors are in that second camp. They are stockpiling the resources they need a now at bargain prices?

This is personal. You can’t just sit and wait for either the government of “somebody else” to walk in with a plan. The Government stimulus checks have come and gone. So what is your positive action in a down economy?

If you need some help defining what to do call us.

John

John Maver
President
Maver Management Group
(925) 648-7561
Maver Management

Ten Top Reasons Businesses Fail

“Going out of Business” signs are being hung up more often these days. Of course, not in storefronts exclusively, as we might expect walking through malls and shopping centers. We see the signs in RIFs, layoffs, plant closings, acquisitions, etc. We also see the signs in quarterly financial reports with dramatically lower revenue reported and profits turning to losses. A lot of businesses are failing or are in deep trouble.

There have been many in depth analysis and there are some common conclusions. Here are the top ten that we have found.

1. Not admitting or sometimes not even knowing that there is a problem. Some companies just do the same thing over and over and expect different results. Recall that this is the definition of insanity. Entrepreneurs, in particular, stick with what they have already been doing, even if it isn’t working, just because it’s what they know. Larger companies get lulled into not changing and it can difficult to make directional swings. Stop. Take a step back and look at the business metrics. Determine what isn’t working. Hit the "reset" button. Cut what’s not working and create a new vision of what the future holds.

2. Failing to plan. Failing to plan is planning to fail. We write about the importance of planning often. The majority of companies do not have a written business plan and then wonder why they are not succeeding. The planning process creates focus. It becomes your blueprint for success. A good marketing and sales plan, filled with strategies for increasing your revenues and profits, can often save you money and increase the results you’re getting.

3. Not leveraging your core competencies The key to long-term business success is leverage. But what do you leverage? You have to identify and understand your core competencies, both your own and those of your business. Businesses often get so buried in the day to day routines that they lose sight of what made them successful in the first place. They wander off into new ventures and ultimately fail.

4. Failing to create a TEAM environment. The leader can’t do it all by himself. Being the boss, the lead sales person, the finance securer and the technical expert can be a difficult juggling act. Get the right people with the right talents and delegate. Motivating, inspiring and rewarding your employees can be one of the toughest personal challenges. But with your commitment to your employees, productivity, efficiency and profits can shoot through the roof. TEAM = Together Everyone Achieves More.

5. Having a "Just around the Corner" mentality. We wrote about “When things settle down” and the problems that it causes. Successful salespeople and business owners know that they must charge ahead, no matter how overwhelmed they seem now, or how good things appear to be "just as soon as…" They know that the time is now and the bounty that lies ahead could get up and walk away before you get there. Do it now is more than just a Nike slogan.

6. Not knowing your numbers. How much did you sell TODAY? What is your actual profit margin on each product? What is the profitability of each customer? How much cash should you have on hand in order to make it through a slow cycle or an emergency? What is your time to market from inception of an idea? You have to have metrics and the right metrics in order to run the business successfully.

6. Not keeping up with your customers. Your customers are changing whether they call to tell you or not. Customers will buy from whoever has what they want when they want it. It’s up to you to make sure you’re on top of what they’re buying now and what they’re likely to buy tomorrow.

8. Not keeping up with technology. The social media is here and is growing astronomically. The old ways of advertising are changing rapidly and if you aren’t using the new technology and venues, you are doomed to failure. Check out the successful companies, large and small. They are all into the new age.

9. Not having the proper advisors Every great sports personality, business person and superstar is surrounded by coaches and advisors. A coach can see the forest through the trees and help you focus on the game. A coach is committed to making you successful. Get the professional help. It has a significant ROI.

10. Quitting - THOU SHALT NOT QUIT!

Do you recognize any of these elements in your business? If you do, trouble is likely ahead and you will want to do something quickly to change the situation. Call us. We can help.

John

John Maver
President
Maver Management Group
(925) 648-7561
Maver Management

What they didn't teach you in business school that your golf professional might.

This week is the Professional Golfers Association (PGA) tournament, the 4th “Major” golf tournament of the year. It is named for the thousands of teaching professionals in golf. The tournament pays tribute to the professional golfers who spend their lives leading and teaching all the rest of us who play this game as a hobby.

Can a golf-pro teach a CEO something about running a company successfully? The answer may surprise you. James F. Bracher of the Bracher Center for Integrity in Leadership wrote about this in 2006. I’d like to build on some of what he wrote.

Successful PGA golf professionals not only play well but also relate with many different people, maintaining commitments to the highest principles of golf. They teach students of all ages constructively and communicate effectively; while simultaneously mastering their own emotional reactions, intellectual and strategic challenges and performance demands. Playing consistently at or below par defines the scratch golfer, but not necessarily a golf professional. Those at the top of the game can teach more than driving, chipping and putting. They are master leaders as well.

They understand and model the behaviors required to play golf at a consistently high level. They are golf professionals because they are able to:
> Create a game plan and follow it. They have it written down so they and their support staff (the caddy) are always on the same page.
> Assess circumstances continuously, both opportunities and risks.
> Concentrate, relying on individual routine throughout performance.
> Stick with decisions, visualizing and executing without uncertainty or fear.
> Control emotions, including anxiety and tension, quieting the mind.
> Stay in the moment, concentrating - leaving bad shots behind.
> Maintain confidence and rhythm; sustaining balance and calm.
> Remember to see, feel and hit the ball - with confidence and intensity.
> Work with the best people to keep their skills at the highest level.
> Keep score with integrity. Golf is self policing and professionals not only follow the rules, they help teach others about the rules and the reasons behind them.

Are you starting to see the similarities for the performance requirements of a CEO?

The next time you play or watch golf, be alert for the leadership behaviors and think how you can model your CEO or senior executive behavior.

Added Note:
By now we know that Padraig Harrington won the PGA and the way he did it is a perfect example of the above behaviors. In the final round, Harrington was tied with Sergio Garcia for the lead as they approached the 17th green. Harrington’s ball was 10 feet away, Garcia’s 4 feet away. Seems like an advantage for Garcia.

However, you may recall that Harrington is coming off a win at the British Open and Garcia who has never won a major tournament faded at the British Open and lost in a playoff last year there to Harrington.

The pressure should have been on Harrington given the relative distances of the putts. But it wasn’t. Harrington followed the attributes above and sank the putt. Garcia missed his and Harrington went on to win.

A very good example for CEOs and other senior executives.

John

John Maver
President
Maver Management Group
(925) 648-7561
Maver Management

Thought Provoking Questions for the Top Executive

1 “How’s business?” is often the first question people ask. Is your business at or above forecast and accelerating?

2. As Diana Ross sings in the theme song from Mahogany says, “Do you know where you’re going to?” Do you have a written business plan that is known by all your managers and guides their activities and decision making?

3. People want to know how to make their company successful. Do you have clear business goals and do your employees understand their specific role in achieving them?

4. Our people take personal ownership in creating success for our company. Who has the ability within the organization to make decisions and do the right things to achieve goals to which all have agreed and committed?

5. Do what you do best. That is what made you successful in the first place. What are your core competencies? How are these reflected in your business plans?

6. Fire fighting is draining and not overly productive in a comparative sense. Have you identified the key challenges and bottlenecks facing the company and do you have a specific plan in place to address each issue?

7. Branding and positioning can mean higher margins. We have written about that here before. Do you have a clear marketing and sales positioning for both the company and your products?

8. Business experts agree that you have to meet customer needs. Do you delight your customers? Is there a clear customer focus across the organization? How often is someone from your senior management team in contact with your top 5 clients?

9. Accurate forecasts mean profitability from better use of resources. Are your revenue and profit results usually very close to forecast?

10. Focus on the bottom line and the impact of actions on it makes for successful businesses. Are your financial measures and results understood broadly beyond just the executives?

11. What you measure gets attention. Do you have clear metrics that measure the progress on each of your business plan strategies and the advancement toward your long term goals?

12. A learning organization is a growing organization said Jack Welch, ex-CEO of General Electric. Is it acceptable to take risks in the organization? How is the learning captured?

13. Do you take advantage of the synergies of working with other companies to extend your effectiveness? Do you have alliances with other companies that extend your capabilities cost effectively?

14. Bill Gates said “R&D is the lifeblood of long term company success.” In the U.S., a typical ratio of R&D for an industrial company is about 3.5% of revenues, high technology companies between 7-14& and pharmaceutical companies 14-25%. Are you growing your investment in the future of your company?

15. A great percentage of new products fail in the marketplace because they are not well thought out from the customer or the supply chain point of view. Do new products make up a growing percentage of your business and are their market introductions at or ahead of forecast?

16. Speed, efficiency and profitability can be accelerated from sound processes in all aspects of the business. How sound are your processes?

17. Information overload is common and yet many can’t get the information they need, on a timely basis, to do their jobs properly. Are your people able to get the information they need to perform effectively?

18. The 80/20 rule is true for employees, both in terms of their impact and in reverse terms as to how much of management time they take. The best employees contribute the most. The least effective take the most management time. What are your plans for motivating and retaining your best employees? How will you manage out the least effective?

How did you do? What are your weakspots?

Let us know how we can help.

John

John Maver
President
Maver Management Group
(925) 648-7561
Maver Management

Marketing and Selling to Professionals

Doctors, dentists, accountants and CEOs are people too. Even lawyers, despite all the jokes. The same is true for the remaining groups that are referred to as professionals. All are people too. If you look at what they do during their non working time, you will find that their interests are pretty “normal”. Family, activities, sports, cars, investments, travel and searching for the right purchases. While they generally have a higher education and possibly intellect than the average, the personal interests are not unusual.

So what? What does this mean to you?

It means that they will respond to marketing and sales messages very much the same as the rest of the population. It used to be thought that in order to communicate with professionals most effectively, one needed only the intellectual presentation of facts, since they were smart enough to draw their own conclusions. Clearly, that isn’t selling and really isn’t even communicating. Thankfully, we have gotten smarter.

Our experience with marketing and selling to professionals over the past thirty plus years, offers some insights. I’ll comment on two here.

The first is “What’s in it for me – the professional?”

In communicating with professionals, we often focus on what’s in it for their patients or clients. We forget the personal aspect and don’t answer the question of what’s in it for me - the professional. I have written about this several times before regarding customers or consumers. The same idea is true for professionals. Doctors not only want their patients cured they also want some peace of mind and less complexity. They have so many new pharmaceuticals and treatments on which to be current and so many other pressures. How can you and your product or service help them out? Dentists have an amazing array of mechanical products with new upgrades coming out all the time. How can they stay current, not buy the wrong materials and not go bankrupt? CEO’s, executives and lawyers have multiple opportunities every day to be distracted and actually add to their burdens, instead of giving them peace of mind. How can your product or service make their life a little better and even give them some joy.

The key here is to put yourself in the shoes of the professional and understand not only their medical or business needs, but also their personal and emotional needs. What would you want? Simple research can add to your analysis and conclusions. I have seen doctors and dentists stand in line at medical conventions for long periods to try their hand at miniature golf for a prize or to get a free take home gift for their kids. Could they do that on their own? Yes! But this was “free”. It gave them that little joy. During their wait there were many opportunities for selling/

The second is “How do you get them to take action?”

Create a simple trigger that makes them think about your product and what it can do for them when they see or hear the trigger. In the dental business at Procter & Gamble, we were marketing a product for mild to moderate gingivitis. Few dentists knew what was mild to moderate, so we created a trigger. If the patient saw bleeding gums when brushing or flossing, they needed our product. It worked and sales skyrocketed. For doctors, in treating patients with Urinary Tract Infections (UTIs), a burning sensation when urinating is a trigger. It means prescribe a certain pharmaceutical and there is no need generally for complicated and time consuming testing. For CEO’s and executives, fighting fires every day is a trigger that all is not running smoothly. There are some simple solutions that can be used to stop the fire fighting.

Professionals are people too. We have had experience over multiple years in communicating successfully with professionals in many different industries. We have found that the principles for communicating effectively with dentists, doctors, lawyers CEOs and other professionals are the same. The execution may be different but the principles are the same.

We suggest these two ideas as a start. There clearly are many more. Contact us and we can help you understand your professionals and find the right triggers for your market as well.

John

John Maver
President
Maver Management Group
(925) 648-7561
Maver Management

Believe It or Not: An Original Take on Leadership

Tom Peters posted an article this week entitled “Believe It or Not: An Original Take on Leadership”.

He recommends a book by Dov Frohman, a pioneer in the semiconductor industry. With Rob Howard, Dov has written Leadership the Hard Way: Why Leadership Can't Be Taught—and How You Can Learn It Anyway

Some of his thoughts are unconventional and yet right on. What do you think?

" In a chapter titled "The Soft Skills of Hard Leadership," Frohman astonishes as he insists that the leader-manager must free up no less than 50% of his-her time from routine tasks. To wit:
"Most managers spend a great deal of time thinking about what they plan to do, but relatively little time thinking about what they plan not to do ... As a result, they become so caught up in fighting the fires of the moment that they cannot really attend to the long-term threats and risks facing the organization.

So the first soft skill of leadership the hard way is to cultivate the perspective of Marcus Aurelius: avoid busyness, free up your time, stay focused on what really matters. Let me put it bluntly: every leader should routinely keep a substantial portion of his or her time—I would say as much as 50 percent—unscheduled. Only when you have substantial 'slop' in your schedule—unscheduled time—will you have the space to reflect on what you are doing, learn from experience, and recover from your inevitable mistakes. Leaders without such free time end up tackling issues only when there is an immediate or visible problem.

Managers' typical response to my argument about free time is, 'That's all well and good, but there are things I have to do.” Yet we waste so much time in unproductive activity—it takes an enormous effort on the part of the leader to keep free time for the truly important things."

Yet another surprising idea from the same chapter is "daydreaming":
"The Discipline Of Daydreaming": "Nearly every major decision of my business career was, to some degree, the result of daydreaming. To be sure, in every case I had to collect a lot of data, do detailed analysis, and make a data-based argument to convince superiors, colleagues and business partners. But that all came later. In the beginning, there was the daydream.

By daydreaming, I mean loose, unstructured thinking with no particular goal in mind. In fact, I think daydreaming is a distinctive mode of cognition especially well suited to the complex, 'fuzzy' problems that characterize a more turbulent business environment. Daydreaming is an effective way of coping with complexity. When a problem has a high degree of complexity, the level of detail can be overwhelming. The more one focuses on the details, the more one risks being lost in them. ... Every child knows how to daydream. But many, perhaps most, lose the capacity as they grow up.”

The 50% amount of time to freed up is high based on my experience but the concept is absolutely correct. We must have free time to think and day dream. The most valuable asset of any company are the brains and yet we constrict them constantly. Unleash your brain power and that of your organization.

John

John Maver
President
Maver Management Group
(925) 648-7561
Maver Management

The COO – The Conductor of the Business Orchestra

As the Director of the San Ramon, California Chapter of the Chief Operating Officer Business Forum, I have the opportunity to work with a number of COOs from a wide variety of industries. In addition to sharing best practices and helping with business acceleration, we work to help define the role of the COO in organizations. The CEO role is well known and many have written about it, including me in my “CEO Tips I Wish I had When I Started” series. But the COO role is different. It is complex and often varies depending upon the CEO’s particular strengths.

There is a lighthearted analogy that may be appropriate - an orchestra conductor. Musical theater and particularly the big Broadway musicals are multifaceted just like a business. The story and the score are written, comparable to a strategic plan. Many different functions are involved, generally under the leadership of the producer and the director. They co-ordinate everything right up until show time, similar to the executive team. And there is a product to sell for revenue and profitability.

Show time and the conductor takes over. This is comparable to how the COO takes over as businesses reach the market and everything comes together. The performers, the business units if you will, the production team for lighting and sound and stage movement, the product supply, and even the ushers, the customer service people, are under his direction. He starts the show by a tap of his baton to focus everyone’s attention. He then brings everyone to action and the show starts. He determines the volume of the music. The right level sets the tone of the score most effectively. If it is too loud, it will drown out the performers and their roles will be lost. If it is too soft, the melodies are lost and the “imperfections” in the casts’ voices can be uncovered. He sets the tempo to facilitate the delivery of the songs in the score. His fine hand on the controls with his baton can build up the performers on stage and make them stars. If he fails, he can destroy not only the show, but the singers as well. Careers are in his hand.

How is this similar to the COO? The COO is charged with the operation of the company. It is their responsibility to make certain that the execution of the plan is done with excellence and that all of the functions work in harmony, just like the orchestra. Certainly, all of the functions and senior executives have their roles just as the actors and actresses do in the stage production, but they must be co-ordinated well. The results of the conductor’s work can be seen in the box office receipts and the results of the COO’s work can be seen on the bottom line profitability of the company.

How important is the conductor to the production in the eyes of the cast? Here is what happens at the end of every performance. After the performers have taken their bows and received the accolades from the audience, the lead performers steps forward. They direct the cast’s and audience’s attention to the orchestra pit and to the orchestra director. Then the cast applauds the conductor. They recognize his critical importance to their success and the success of the show. The audience leaves the theater often singing or humming parts of the score and continuing the tribute to the conductor.

The orchestra conductor is a critical factor in the success of the musical business. The COO is a critical factor in the success of a business. One may very well say that there is much more that a COO does to make a company successful and that is true. However, it serves as a good analogy for the critical role of the COO.

So applause, applause.




John

John Maver
President
Maver Management Group
(925) 648-7561
Maver Management