Face the Risks of Suddenly Being Viewed as a Family Business

As specialists in the strategic needs of privately held midsized companies, we naturally interact with lots of family owned businesses.  There has been more than one government study that has said that the owners of 90% of all privately held companies view their companies as “family businesses.”  That’s a lot!  Some owners claim they are “family owned” even when only one member of the family is involved.  No spouse, sibling, offspring, cousin or even an in law employed in the company! WOW.

It makes you wonder what is meant by “family business.”  In some folks’ minds, “family business” means trustworthy, hard working, stable, community minded, friendly, and focused on customer service.

But what does “family owned and operated” mean to prospective employees?  It can mean that their careers will be limited. They may assume that they will never be eligible for profit sharing, could never become an equity shareholder, will never be viewed as a top executive, and will never fully have the president’s ear.   It could mean that they should always be prepared to have some young kid brought in to become their boss. Being the boss’s son or daughter trumps any advanced education, job experience, or longevity with the company they may have.

If your business is family owned, it takes intentional effort to convey your policies about career advancement opportunities, your logic behind hiring and promotions, etc.  It can be difficult to attract top talent if you can’t tangibly demonstrate that you value “outsiders,” are open to having business partners who don’t share the same last name, and use contribution to guide profit sharing rather than genetics.

We were reminded about these kinds of issues recently when a company (now a client) inadvertently slipped into being viewed as a “family business.”  The president had needed some help with the firm’s marketing and had asked his very capable wife to help. He couldn’t figure out why his key employees were acting funny, seemed defensive, were suddenly worried about their futures, questioning his decisions, etc. He knew he was still the owner and their boss. But the key employees had assumed the premise of the business had changed.  If your company is a “family business,” make sure you know why and address the negative implications as well as the positive.  If not, be careful you don’t inadvertently slip into becoming one.

 

Aldonna R. Ambler, CMC, CSP has earned the right to be called THE GROWTH STRATEGIST™. She has won over 2 dozen national and statewide “entrepreneur of the year” awards for the resilient growth of her international businesses across 4 recessions.  Her midsized BtoB service, technology, and distribution clients get on…and then stay on…the published lists of the fastest growing privately held companies. Ambler is in the process of launching her 8^th enterprise. All of her current service businesses (strategic planning, executive advisory, growth financing, talk show, speaking, and search) help privately held midsized companies achieve accelerated growth with sustained profitability®. 2012 is Ambler’s 8^th year hosting a weekly peer-to-peer-to-peer syndicated on line talk show that features interviews with CEOs/Presidents of midsized companies (typically between $20 and 200 Mil/yr) sharing success tips about the growth strategy-of-the-week. An archive of over 300 interviews is available at www.GrowthStrategistShow.com. She can be reached toll free at 1-888-Aldonna or at Aldonna@AMBLER.com

 

2011 Was a Tougher Year for the Owners of Midsized Companies and Recent Retirees than the News Media Portrayed

Deep down, we all know that broadcast and print media have some biases.  (No kidding.)  During election years, some media outlets are compelled to emphasize progress being made, jobs being created, and consumers spending more around the Holidays. Following recessions with particularly long periods of uncertainty (NOW), some reporters play the role of consumer advocate to help unwitting buyers beware of high profile crooks. While the US Congress and President Obama took different stands on raising the debt ceiling in 2011, the media focus seemed quite partisan.

So why am I reminding you about media bias?

In the midst of all of the political infighting and fussy stories about progress, the personal portfolios of owners of midsized companies and recent retirees took a disproportionate hit during the summer of 2011.  For many, 2011 was as bad as 2008. That fact got lost in the media coverage.  So if you lost a lot of money in 2011, you could be wondering if you were cheated somehow instead of feeling “normal.”

Imagine if your investment portfolio of $10 Mil dropped 30% in 2008 to $7 Mil and then it dropped another 30% in 2011 to under $5 Mil.  People in that position thought they could stop working and turn their family businesses over to the next generation but now feel compelled to continue to work to replace lost money. Folks who retired from corporate management positions after 30+ years now wonder if they can afford to keep the house at the lake. Instead of investing in real estate, businesses, new products, and nice vacations, these people are worried and frozen.  This has a direct impact on job creation.

I also mention media bias because many of the people who lost large sums of money in 2011 (maybe you) wonder if you did something wrong, have lost some trust in your advisors, and feel stranded.  That combination of emotions stifles economic recovery.

If my words resonate with you, give your financial planner a call. Get explanations.  Revisit your personal financial plan. Base your decisions on real information rather than just worry.

Isn’t it interesting that a strategist who helps companies grow is suggesting that you request an appointment with your personal fee only financial planner. Mental attitude in one arena impacts the other.

 

Aldonna R. Ambler, CMC, CSP has earned the right to be called THE GROWTH STRATEGIST™. She has won over 2 dozen national and statewide “entrepreneur of the year” awards for the resilient growth of her international businesses across 4 recessions.  Her midsized BtoB service, technology, and distribution clients get on…and then stay on…the published lists of the fastest growing privately held companies. All of her current service businesses (strategic planning, executive advisory, growth financing, talk show, speaking, search) help privately held midsized companies achieve accelerated growth with sustained profitability™.  Ambler is wrapping up her 7^th year hosting a weekly peer-to-peer-to-peer on line talk show at www.Business.VoiceAmerica.com and www.growthstrategistshow.com  which  features interviews with CEOs/Presidents of midsized companies (typically between $20 and 200 Mil/yr) sharing success tips about the growth strategy-of-the-week. Family owned businesses are being emphasized in 2011. Ambler is in the process of launching her 8^th enterprise. She can be reached toll free at 1-888-Aldonna or at Aldonna@AMBLER.com.  

 

What to Do About Drift, Scope Creep, Unfinished Projects & Ineffective Messaging

Don’t feel bad if your company has drifted away from its strategic plan. Tough economic times can do that. Recessions invite worried sales people to agree to whatever price they can get any prospect to accept. Uncertainty can lead product development initiatives down several paths only to end up with unfinished projects. Insecurity cues marketing messages to become broad based, safe, generalized and ineffective. Service minded employees trying to accommodate today’s demanding customers quickly leads to scope creep on contracts and reduced profitability.

The operative words are worry, uncertainty, insecurity, and accommodate. That mindset leads to drift, reduced effectiveness, scope creep, and lowered profitability. If you are experiencing this phenomenon, you are normal…and the good news is that it’s curable.

Convene your management team to review updated data about the various subgroups within your customer base. Your company’s “sweet spot” may have inadvertently shifted.  Maybe in the past, your company was most effective and generated the best profit from small business accounts. Perhaps now, you should focus on medium sized businesses.  Maybe in the past, you could handle five distinct industries; and realistically, you now need to drop one and focus on four. Maybe the range of products/services just needs to be brought back into a smaller range so you can be more efficient, handle the risk, and feel a sense of accomplishment.

These “Let’s Get Re-Centered” sessions need to happen more frequently during tough economic times. What’s going on in the European economy does impact customers in North America. The politics of the Middle East influences decisions in South America and Asia. Technology in Australia matters to companies in Africa.

Aldonna R. Ambler, CMC, CSP has earned the right to be called THE GROWTH STRATEGIST™. She has won over 2 dozen national and statewide “entrepreneur of the year” awards for the resilient growth of her international businesses across 4 recessions.  Her midsized BtoB service, technology, and distribution clients get on…and then stay on…the published lists of the fastest growing privately held companies. All of her current service businesses (strategic planning, executive advisory, growth financing, talk show, speaking, search) help privately held midsized companies achieve accelerated growth with sustained profitability™.  Ambler is wrapping up her 7^th year hosting a weekly peer-to-peer-to-peer on line talk show at www.Business.VoiceAmerica.com and www.growthstrategistshow.com that features interviews with CEOs/Presidents of midsized companies (typically between $20 and 200 Mil/yr) sharing success tips about the growth strategy-of-the-week. Family owned businesses are being emphasized in 2011. Ambler is in the process of launching her 8^th enterprise. She can be reached toll free at 1-888-Aldonna or at Aldonna@AMBLER.com. 

 

Create an Optimally Sized Business Instead of Fretting About Succession

If you are the majority owner of a business and feel yourself shutting down when the subject of succession comes up, consider the following layers:

1. YOU – Reflect first on the results of appointments you (and your significant other) have had with your personal financial planner, physicians, estate attorney, and accountant.  When will you want to retire or reduce your workload? What is your life expectancy? What income will you need? Where will you want to live? Will you have caretaker responsibilities and expenses? Do you have long term care insurance? How much could your other income sources produce? How much do you need, want, deserve from the business? (These may well be 3 entirely different numbers.)
2. THE BUSINESS – Reflect second on the future of the business. In many ways a company is a living breathing entity. Think about the economy, the customer base, product life cycle, momentum, etc. What will the company need to be resilient? Profitable? Significant? (These too may be 3 entirely different answers/numbers).
3. PEOPLE – Reflect third on key individuals who drive the resilience, profitability, and significance of the business. What reward have they earned? What return have they been promised? What help will they need as you step back and some money is paid to you?
4. THE COMBINATION– What would  the optimum size of the business be to:
   • pay you what you deserve
   • ensure that the business is resilient, profitable, and significant
   • provide key people what they have earned and been promised
   • have leadership and skill sets in place to handle transition
5. HOW – What strategies would achieve optimal size, resilience, profitability, significance, and fulfillment of obligations to key people (including you)? Maybe you should consider acquiring a complementary company? Maybe you should consider merging with a competitor?  Will the company need to hire a President? Would an ESOP retain key employees? Perhaps improved marketing would be sufficient.

This sequence may seem obvious, but it is NOT what most people do.

Many business owners end up with a scramble of facts and emotions about themselves and other people.  Loyalty. Fear of the future. Legacy.  Entitlement.  Guilt.  Disappointment.

Especially during uncertain economies (NOW), many owners approach succession – related analysis from a pessimistic almost cynical viewpoint. I have seen owners work themselves up into horrible resentments based on arguments they have had with themselves in their own minds.  Without assistance, they never reach question # 4…let alone question # 5.

The optimally sized business meets its obligations to the owners, its key stakeholders, and its future. When there are honest answers to questions 1-3 , the optimal size becomes self evident and can guide strategic decision making focused on the market place, product differentiation, productivity, etc. with far fewer negative assumptions, resentments, and fear.

Aldonna R. Ambler, CMC, CSP has earned the right to be called THE GROWTH STRATEGIST™. She has won over 2 dozen national and statewide “entrepreneur of the year” awards for the resilient growth of her international businesses across 4 recessions.  Her midsized BtoB service, technology, and distribution clients get on…and then stay on…the published lists of the fastest growing privately held companies. All of her current service businesses (strategic planning, executive advisory, growth financing, talk show, speaking, search) help privately held midsized companies achieve accelerated growth with sustained profitability™.  Ambler is wrapping up her 7^th year hosting a weekly peer-to-peer-to-peer on line talk show at www.Business. VoiceAmerica.com and www.growthstrategistshow.com that features interviews with CEOs/Presidents of midsized companies (typically between $20 and 200 Mil/yr) sharing success tips about the growth strategy-of-the-week. Family owned businesses are being emphasized in 2011. Ambler is in the process of launching her 8^th enterprise. She can be reached toll free at 1-888-Aldonna or at Aldonna@AMBLER.com.

 

Your Sales Force MUST Embrace the Strategic Plan or You Don’t Have One

Many of you are in very dynamic industries with rapid technical advancements, globalization, certifications required for preferred vendors, and an evolving pool of competitors. To keep up with (better yet…get ahead of) the changes around you, you are increasing the frequency of your market research, customer satisfaction surveys, and strategy sessions.

The process of research and analysis has led several of our clients to the conclusion that the rules have changed sufficiently in their industries that they must dramatically change their business models. A few are making the move from billing for hours to value/results-based pricing. A few are getting into private label products and focusing on niche markets. Some are going after much larger accounts and essentially “firing” the bottom 10% of their customers. One is dramatically modifying the role of the distributor in their industry. Another weighed the pros and cons of leading a roll up while another is seriously considering a merger to get the help they need with backroom operations. Most have to also address sticky succession issues.

An inexperienced person might jump to the conclusion that production level personnel would be the most resistant to change, assume their jobs are now at risk, and not want to learn.  In all of the cases mentioned above, the waged employees have not presented a challenge.  They have been excited that their employers are doing research, considering the future, starting new things, providing opportunities to learn new skills, and investing in survival and growth.

In a few instances, our clients have had to bring in a CFO instead of expecting their Controller to generate scenarios or deal with bankers and investors. In one case, the HR Manager was over his head and didn’t know how to change the company’s approach to recruitment. We got them into the Top Grading approach, which helped.

Absolutely, across all of these examples of companies changing their business models, the sales force has been the most reluctant to help, learn, accept, and change.  With the unemployment rate as high as it is these days, one would think that sales people would be a little more willing to try a new approach, go after larger accounts, learn to use updated systems, etc.  Despite involving sales people in the research, utilizing participative approaches to strategic planning, and providing training and coaching for success, these clients have had to put sales people on notice, let some of them go, and dramatically step up recruitment to attract future oriented sales people.

Nothing will torpedo a new strategic direction faster than sales people continuing to talk about the past or criticizing their employers for wanting to change.

 

Aldonna R. Ambler, CMC, CSP has earned the right to be called THE GROWTH STRATEGIST™. She has won over 2 dozen national and statewide “entrepreneur of the year” awards for the resilient growth of her international businesses across 4 recessions.  Her midsized BtoB service, technology, and distribution clients get on…and then stay on…the published lists of the fastest growing privately held companies. All of her own service businesses (strategic planning, executive advisory, growth financing, talk show, speaking, search) help privately held midsized companies achieve accelerated growth with sustained profitability™.  Ambler is in her 7^thyear hosting a weekly peer-to-peer-to-peer on line talk show atwww.Business.VoiceAmerica.com and www.growthstrategistshow.com that features interviews with CEOs/Presidents of midsized companies (typically between $20 and 200 Mil/yr) sharing success tips about the growth strategy-of-the-week. Family owned businesses are being emphasized in 2011. Ambler is in the process of launching her 8^th enterprise. She can be reached toll free at 1-888-Aldonna or at Aldonna@AMBLER.com.

 

Why VIRTUAL Growth Should NOT Be a Goal

Yep.  Advanced technology makes it very tempting to grow your company through subcontractors and vendors.  That option is particularly reassuring if you are reluctant to accept the responsibility, cost, and risks associated with building a team of employees. Even if you didn’t want to take the virtual route, these days you may feel compelled to do so because so many service providers view themselves as “entrepreneurs” rather than employees. You may benefit from the flexibility that comes with growing virtually.  When a vendor or subcontractor under-delivers, you simply replace them … right?

But be careful.  Despite the obvious benefits, VIRTUAL growth also brings its own share of challenges. Just because a bright owner knows how to design great websites or create social media programs doesn’t mean he/she knows how to train people, grow a business, develop a team, etc.  Pretty soon, the business management problems of a trusted vendor become your problems as deadlines are missed, your LINKED IN account gets shut down, or your “Golden 50” program screeches to a halt. The vendor won’t want to tell you that he/she is having difficulty managing his/her business.  You don’t see them every day, so you miss warning signs. Now you must invest time in fixing the problems, getting things back on track, reviewing invoices, renegotiating the contract, and looking for a replacement. No one feels any sense of loyalty or security.  Folks are expendable at any time. Bridges are burned over and over and over.

As a result of virtual relationships, we have seen more and more company Presidents spending way too much time looking for new vendors, diving back into the details, worrying, and not doing their own jobs. When the commitment to virtual growth becomes the goal instead of a tool, it can stifle productivity, profitability, and perspective.

The VIRTUAL approach isn’t limited to marketing, bookkeeping, HR management, IT, etc.  The biggest risks, in my opinion, come when a company relies too heavily on subcontractors for client services, production, etc.  It is too easy to become a subcontractor for most companies.  We know a few firms that use very thorough multi-step screening processes when they hire employees and then utilize a very superficial contracting process for important subcontractors who interact with their customers on a daily basis!  Their entire future and reputation is on the line because growing virtually has been elevated to a goal.

We’ve seen companies with fabulous supervision and coaching programs in place for employees that are not utilized with key subcontractors at all! Subcontractors can easily value their flexibility over your customer satisfaction goals. They can easily modify your process and methodologies. Because they are independent, they have to keep looking for their next great opportunity.

If you rely heavily on subcontractors and vendors to grow your business, consider:

• Strengthening your selection, training, supervision, and performance evaluation processes.
• Certifying and/or licensing to convey the value of your methodologies and intellectual property.
• Hiring a manager with sourcing, purchasing, and contract administration experience.
• Asking yourself if and why growing virtually has been elevated to a goal for you.
• Reviewing your approach to team building.

Aldonna R. Ambler, CMC, CSP has earned the right to be called The Growth Strategist™. She has won over two dozen national and statewide “entrepreneur of the year” awards for the resilient growth of her international businesses across four recessions.  Her midsized B-to-B service, technology and distribution clients get on…and then stay on…the published lists of the fastest growing privately held companies. All of her own service businesses (strategic planning, executive advisory, growth financing, radio show, speaking, search, etc.) help midsized companies in Achieving Accelerated Growth With Sustained Profitability®. Ambler is in her 7^th year hosting a weekly peer-to-peer-to-peer online radio program atwww.business.voiceamerica.com or www.GrowthStrategistRadioShow.com that features interviews with CEOs/Presidents of midsized companies (typically between $20 and 200 Mil/yr) sharing success tips about the growth strategy-of-the-week. She can be reached toll free at 1-888-Aldonna or at Aldonna@AMBLER.com.

 

A Few Reminders About Why Collaboration Is More Important During Tough Times

This past Sunday morning I was watching “This Week with Christiana Amanpour” on television. She is an excellent interviewer when it comes to foreign policy, global issues, political regimes, etc.  During one segment of the broadcast, she was interviewing Former US President Bill Clinton about the upcoming conference of his CLINTON GLOBAL INITIATIVE.  Unemployment is not just a US problem so CEOs from around the globe will be brainstorming ideas to create more jobs.

President Clinton provided about a dozen examples of places with lower unemployment rates and more resilient economies.  Every example involved collaborative effort.  San Diego has a successful technology initiative.  MIT and other institutions are working together and getting results around Boston. He mentioned Austin, Texas and finished the list with Mayor Bloomberg’s idea for New York City to establish a technology research center on unused land on Governor’s Island.

And then today, I was interviewing Dave Clements on my weekly talk show. He is the Director of the Lacrosse Convention and Visitors Bureau in Wisconsin. The subject of today’s broadcast was “What Presidents of Midsized Businesses can learn from an Executive of a Nonprofit Organization.”  Sure enough, Dave talked about collaboration.  They squeeze lots of wonderful events out of their $800,000/year budget by doing strategic alliances, joint ventures, and bartering. He also shared advice about how to get the most out of employees, how to position your organization as a hub of positive activity, how to win despite the perception that you are up against a large well financed competitor, why to never turn down media interviews, and how to turn liabilities into assets.  The primary message was collaboration.

And last week, I proposed an idea to an association that involves collaboration among members. At first, the idea doesn’t seem possible to business leaders who are hearing nothing but bad news. After all, each person is very busy handling the impact of the bad economy.  Why would anyone want to collaborate?   Frankly, during tough times, I find that people also need to feel a sense of progress.  If there is a project for which each person is asked to play a small part and it somehow adds up to a positive change, most people will give it a try….if negative people don’t kill their enthusiasm. 

 

Aldonna R. Ambler, CMC, CSP has earned the right to be called THE GROWTH STRATEGIST™. She has won over 2 dozen national and statewide “entrepreneur of the year” awards for the resilient growth of her international businesses across 4 recessions.  Her midsized BtoB service, technology, and distribution clients get on…and then stay on…the published lists of the fastest growing privately held companies. All of her own service businesses (strategic planning, executive advisory, growth financing, talk show, speaking, search) help privately held midsized companies achieve accelerated growth with sustained profitability.™ Ambler is in her 7^thyear hosting a weekly peer-to-peer-to-peer on line program at www.Business. VoiceAmerica. com and www.growthstrategistshow.com that features interviews with CEOs/Presidents of midsized companies (typically between $20 and 200 Mil/yr) sharing success tips about the growth strategy-of-the-week. Family owned businesses are being emphasized in 2011. Ambler is in the process of launching her 8^th enterprise. She can be reached toll free at 1-888-Aldonna or at Aldonna@AMBLER.com.

 

Are You Applying Your Knowledge About Generational Differences to Close More Deals & Have More Cost Effective Staffing?

I am writing this week’s blog while on an airplane en route to Philadelphia from Los Angeles.  I spent the past five days at the annual convention of the National Speakers Association.  As usual, there were several marvelous presentations, hundreds of pieces of practical advice and astute insights.  If you’re not tired at the end of each day at an NSA convention, you’re just not paying attention.

Two tidbits from general platform presentations: Terri Sjodin underscored the importance of tailoring sales messages based on the generational differences of prospects.  You can imagine the worry on the faces of numerous baby boomers in the audience as they learned that when dealing with a millennial generation buyer, a tailored interactive multimedia opportunity must be integrated into the sales presentation not just the speech that they buy.

In contrast, Dr. Ken Dychtwald’s general session presentation reminded the speakers that the huge baby boomer generation isn’t dropping off of the planet.  On the contrary, they now have a much longer life expectancy, are healthier than ever and are reinventing themselves rather than choosing traditional retirement.  Many don’t want to work full time but still want challenging projects, opportunities to continue to learn.

How many midsized companies could be more productive if they contracted baby boomers to work on projects and take a week off every month?  Work ethic, experience, appreciation for the opportunity, expertise – what a concept!

Aldonna R. Ambler, CMC, CSP has earned the right to be called The Growth Strategist®. She has won over two dozen national and statewide “entrepreneur of the year” awards for the resilient growth of her international businesses across 4 recessions.  Her midsized B-to-B service, technology, and distribution clients get on…and then stay on…the published lists of the fastest growing privately held companies. All of her own service businesses (strategic planning, executive advisory, growth financing, radio show, speaking, and search) help privately held midsized companies in Achieving Accelerated Growth With Sustained Profitability®. Ambler is in her 7^th year hosting a weekly peer-to-peer-to-peer online program at http://www.Business. VoiceAmerica. com and www.growthstrategistshow.com that features interviews with CEOs/Presidents of midsized companies (typically between $20 and 200 Mil/yr) sharing success tips about the growth strategy-of-the-week. Family owned businesses are being emphasized in 2011. Ambler is in the process of launching her 8^th enterprise. She can be reached toll free at 1-888-Aldonna or at Aldonna@AMBLER.com.

 

It Takes More Steps to Get Employee BUY IN for Your Growth Plans These Days

My strategic planning firm has a few clients in which the employees are FAR more skeptical than any of the executives, customers, and/or vendors.   There are just too many media broadcasts blaring sad stories and negative news.  The employees have relatives and friends who have lost their jobs. Many companies that are doing well in this economy stay below the radar so the general public has become convinced that every company is in trouble. The employees simply find it difficult to believe that their employers have truly good ideas and doable plans.

Normally, our periodic speeches that augment the executives’ candid presentations are more than enough to reassure and ignite employee excitement.

This year, we have needed to bring in additional resources.  An expert in change management will be emceeing an event with us for one of our clients.  The event will be recorded so preferred vendors who are not available to attend the event will not miss anything.  As he asks questions to convey the journey the company is on, he’ll directly ask what led them to bring in growth strategist(s) during a recession. He’ll ask tough questions the employees have been reluctant to ask.  And he’ll be able to address doubts in a way that no insider has “situational permission” to do any more.

We have also noticed that our clients have had to expand the distribution of their management team meeting agendas and notes.  Employees who need a dominated by fear and worry (need security and reassurance) can become over sensitive to anything that seems secretive.

We all know that gaining BUY IN is crucial to the success of business growth plans.  Just It’s not your imagination, more frequent presentations, outside confirmation, and increased transparency are needed during periods of uncertainty (like now).

 

Aldonna R. Ambler, CMC, CSP has earned the right to be called THE GROWTH STRATEGIST™. She has won over 2 dozen national and statewide “entrepreneur of the year” awards for the resilient growth of her international businesses across 4 recessions.  Her midsized BtoB service, technology, and distribution clients get on…and then stay on…the published lists of the fastest growing privately held companies. All of her own service businesses (strategic planning, executive advisory, growth financing, radio show, speaking, search) help privately held midsized companies achieve accelerated growth with sustained profitability™.  Ambler is in her 7^th year hosting a weekly peer-to-peer-to-peer on line program at http://www.Business. VoiceAmerica. com and www.growthstrategistshow.com that features interviews with CEOs/Presidents of midsized companies (typically between $20 and 200 Mil/yr) sharing success tips about the growth strategy-of-the-week. Family owned businesses are being emphasized in 2011. Ambler is in the process of launching her 8^th enterprise. She can be reached toll free at 1-888-Aldonna or at Aldonna@AMBLER.com.

 

Are Your Perfectionist Demands Demotivating Your High Achievers?

The ABC television series WHAT WOULD YOU DO? recently featured a segment based on the book TIGER MOM.  They set up a scene in a restaurant where actors played a mother bawled out her young daughter for getting an A minus on a school quiz.  She derided the young girl in public saying that people in their family only get As.

So what would you say?  What if it was a business situation involving adults?

A few of our midsized company clients were getting into trouble because they were getting ahead of themselves.  The top executives are visionary, have high aspirations, and want to promise huge results for their clientele. That’s wonderful and can be inspiring.  But if huge demands are placed on organizations that are understaffed and/or cash strapped, those same aspirational expectations become demoralizing.  It can feel like being a child embarrassed by a disgruntled parent when you didn’t get all As.

Unrealistic demands can demotivate even your highest achievers.  How will they ever make their mark, feel like stars, or exceed expectations when the bar has been set so unreasonably high?  Both companies have recently seen a few of their star potential people just shut down, lose judgment, and act out in ways they would not normally do. The loss of high achievers is expensive and definitely impacts everyone else.  The mainstream employees have an excuse to coast if the brightest stars leave.

At the risk of sounding like the coach of a baseball team, it comes down to basics.  If the important procedures aren’t consistently being executed, feel routine, and come naturally…you could be getting ahead of yourself and setting yourself up to fail by demanding complicated, highly creative, high performance actions.

Aldonna R. Ambler, CMC, CSP has earned the right to be called THE GROWTH STRATEGIST™. She has won over 2 dozen national and statewide “entrepreneur of the year” awards for the resilient growth of her international businesses across 4 recessions.  Her midsized BtoB service, technology, and distribution clients get on…and then stay on…the published lists of the fastest growing privately held companies. All of her own service businesses (strategic planning, executive advisory, growth financing, radio show, speaking, search) help privately held midsized companies achieve accelerated growth with sustained profitability™.  Ambler is in her 7^th year hosting a weekly peer-to-peer-to-peer on line radio program at http://www.Business. VoiceAmerica. com and www.growthstrategistradioshow.com that features interviews with CEOs/Presidents of midsized companies (typically between $20 and 200 Mil/yr) sharing success tips about the growth strategy-of-the-week. Family owned businesses will be emphasized in 2011. Ambler can be reached toll free at 1-888-Aldonna or at Aldonna@AMBLER.com.