Best Meeting Ever

Recently we had a meeting totally derailed by one of the participants.train derailedIt turned out to be the best meeting we ever had! This member, who I’ll call “Joe,” was usually an upbeat, confident person, but he was clearly upset about something when he arrived. He said, “I know we’ve got a set agenda for today’s meeting, but I really need your help on a couple issues. If it’s ok with the group, I’d like to throw them on the table.”

The meeting was one of the Business Owners’ Roundtables I facilitate twice a month. Each of the six to eight members is either the owner or most senior executive of their company. Our agendas are typically topic-based around business issues, with a lot of interaction and input among members. Without hesitating, the others agreed to listen and see how they could assist.

Joe had recently begun work on his largest project ever for a client and was nursing it along because it was so complex with a lot of mission-critical elements. He wanted to really impress the client, and he knew the project’s size was going to stretch him and his company. The group had heard about it already and had been encouraging him along the way.

Another development, however, had just thrown a big wrench into Joe’s life and his ability to handle everything going on. His wife had just announced that she was leaving him and the children. The group knew nothing about Joe’s personal life so this was a surprise to everyone.

With two major issues now consuming Joe’s focus – and threatening to overwhelm him, the group became the place for him to vent his feelings and concerns about his family, and his fears and hopes about the new project. In short order, he had to figure out how to be a single dad to two teen age children and balance those demands with his business when it was at a critical inflection point.

These issues don’t have “quick-fix solutions,” but they do benefit from good, strong counsel and a place to get a variety of input. That’s what the group provided. We walked with him through the issues and made addressing his needs the dominant topic in that meeting. He left that day with a little more bounce in his step. Over the following months, we kept tabs on his progress and offered more suggestions to help him on his difficult, but ultimately successful journey.

Why did everyone agree this was our best meeting ever as a group? Because everyone really put into practice a “We live business and we live life together” mindset and felt energized and enriched by it. They had gotten comfortable enough with each other to allow that to happen. Joe also realized the group was a safe place where he could trust the others with his deep, personal concerns and issues, not just with business details.

If you don’t have a group or a friend like this that will let you walk in and throw a personal bomb on the table, then I encourage you to GO GET ONE. If you don’t know where to start, visit one of my Business Owners’ Round Table groups at New Paradigm Advisors. We’re here to help you “live your business and live your life” with others who’ve been there and done that.

Are You Reacting or Responding to Life?

“Imagine going to the doctor for medication and returning for a follow-up visit. In one case the doctor says you are reacting to the medication, in the other case the doctor says you are responding to the treatment.”
-Zig Ziglar

When faced with anything in life, we have a choice… we can respond or we can react. The key to success is often our reaction or response to life.

What is the difference?

To respond is defined as:
1. To make a reply; answer.
2. To react positively or favorably: The patient has responded rapidly to the treatment.

To react is defined as:
1. To act in response to or under the influence of a stimulus or prompting
2. To act in opposition to a former condition or act

As Zig Ziglar’s quote mentioned above, responses are often seen as positive and reactions as negative.

When we react to a situation, it is often a fight or flight action, more often than not it is a defensive mechanism. It is reflexive with little thought of the action or outcome. Reaction is usually a response to an emergency or a crisis. When people react, it seems to be defensive.

Being responsive on the other hand usually involves some thought and reflection. It often involves being sensitive, but logical in ones actions. While it is still an external spur to a situation, responding is more thoughtful and done with reason behind it. When people respond, it seems to be proactive and positive.

In light of the Coronavirus and a future of uncertainty, how are you doing? Are you responding or reacting? The most important thing for you to do right now is to respond appropriately. The most effective method of doing this is taking a break.

For our EOS clients we recommend scheduling a break called a “Clarity Break”. A Clarity Break is a regularly scheduled appointment on your calendar with yourself. You define what regular is – a half hour daily, two hours weekly, a half day monthly. It’s up to you. The doing it, is what matters. This break is an opportunity to work ON your business.

The characteristics of a good Clarity Break are:
* away from your place of business
* at a frequency that you can afford and is helpful to you
* of a duration that allows you to think clearly and achieve some results, and
* generally done without electronic devices

Gino Wickman, the founder of EOS®, takes them one morning a week in a Starbucks. Just him, his coffee, and a yellow legal pad. He often says that at the start he sometimes finds himself staring at the pad, but almost always ideas, concerns, questions arise from the back of his mind and good thinking starts.

Take a Clarity Break and decide to respond, not react.

New Paradigm Advisors believes you deserve to enjoy the benefits of a profitable, growing and well-run business. We help you break out of the old way of doing things and attack the new economy with a renewed passion and focus. For more information about transitioning your business, please reach out to us. We’d love to hear from you.

The New Paradigm Advisors Team

EBITDA or EBITDAC?

The term EBITDA is common practice in the financial world. The term is also frequently used by business owners, without a financial background, but do we really know what it stands for?  EBITDA means Earnings Before Interest, Taxes, Depreciation and Amortization.

The term is used as the standard for the operational cash-flow a business generates over a certain period, without taking into account the financial result, taxes, exceptional income or expenses. As we talk about cash-flow the non-cash costs as depreciations and amortizations are also excluded.

But what about EBITDAC… Earnings Before Interest, Taxes, Depreciation, Amortization and Coronavirus?

How has the Coronavirus affected you, your employees, vendors, and customers?  It is safe to say that at some level COVID-19 has impacted every business owner and their bottom line.  As restrictions ease and we return to some level of normalcy, it’s important to look back and reflect on what learnings we can glean from this and how to prepare for the future.

As an EOS Implementer, I help companies focus on three timeless principles regardless of the circumstances. EOS, the Entrepreneurial Operating System, is a complete set of simple concepts and practical tools that has helped thousands of entrepreneurs get what they want from their businesses. Implementing EOS will help you and your team get better at three things:

  • Vision—getting everyone in your organization 100% on the same page with where you’re going, and how you plan to get there.  Does everyone in the organization know where you are going and how to get there?  Is it clearly stated and communicated?  You and your leadership team should articulate or refine your vision to reflect who you are, why you exist, what you do and where you are going.  It gives you (and your company) a road map to follow.
  • Traction®—instilling focus, discipline, and accountability throughout the company so that everyone executes on that vision—every day.  This is where he “rubber meets the road” and your strategy becomes actionable.   Your people must focus on what needs to be done, you must have the necessary processes in place to act and then you should manage outcomes to get results.
  • Healthy—helping you (and your leaders) become a more cohesive, functional, healthy team.  In the book, “The Advantage” by Patrick Lecioni, to be successful, you need to be both “smart” with strategy, marketing, finance and technology AND “healthy” with minimal politics and confusion, high morale and productivity, and low turnover.  Are you building a culture that is healthy and helping you thrive?

In the midst of this pandemic, your problems and issues only get magnified.  Don’t ignore them, recognize and address them.  Once we are on the other side of this and you report EDITDAC, let us help you build a business that is ready for both the good times and bad times.  A business that allows you the freedom to balance both work life and family life, increasing in value, and gives you a future to accomplish your dreams.

New Paradigm Advisors believes you deserve to enjoy the benefits of a profitable, growing and well-run business. We help you break out of the old way of doing things and attack the new economy with a renewed passion and focus. For more information about transitioning your business, please reach out to us.  We’d love to hear from you.

Michael Visentine and The New Paradigm Advisors team

Never Waste a Crisis

I once worked for a CEO who would say, “never waste a crisis.”  I knew what he meant, but it did not really hit home until more recently with the COVID-19 crisis we are all facing.  Whether you are looking for business or have more business than you can handle, you need to adjust now to the “new normal.”  What does the world look like post pandemic and how does your business respond?  You need to prepare now and be thinking ahead to address next steps and not be caught “flat footed” in the new normal.

I recently read a study done by BCG about the 2007-09 Great Recession and the common traits (five factors) global S&P 500 businesses employed to recover.  While this pandemic is different, it is still a valid study to obtain insight into planning for your next steps to thrive and not just survive as you move forward.

The five factors:

  1. Act proactively.  Business that weathered the recession and came out stronger, owned the situation and were forward-looking in their thinking, planning and actions.  No matter what position you find yourself in, there will be a recovery and you have to be ready.  In Stephen Covey’s book “The 7 Habits of Effective People”, Be Proactive is the first habit.  It is about taking responsibility for you and your company. Do not blame the pandemic, the economy or the government. Proactive people recognize that they are “response-able.”  They know they choose their behavior and course of action.
  2. Stick to a clear vision. Top performers did not change their vision based on circumstances.  To put it in simple terms… your destination stays the same, but how you get there may change.  In the Entrepreneurial Operating System (EOS), vision is the process of getting everyone in your organization 100% on the same page with where you’re going.  As an EOS Implementer, I help companies craft a vision the does not change with the circumstances but is timeless and also for flexibility to adapt.  If you don’t have a clear vision, how do you know where you are going?
  3. Increase demand vitality. Successful companies addressed changes in the marketplace and adjusted accordingly. With the COVID-19 and decreased physical foot traffic, you need to look online and how to adapt to and adjust your model for increased online presence with the ability to market, sell, and service online.  Where are trends and what is best option for you to capture the demand?  How will you best respond to these demand changes?  Assess and then go.
  4. Create supply agility. Businesses that thrived, were able to quickly assess impacts to their supply chains and respond with alternatives.  Too much reliance on one vendor can greatly hamper or impact your business.  You must build adaptation and agility into supply base and supply chain. Fortunately, new supply chain technologies are emerging that dramatically improve visibility across the end-to-end supply chain, and support companies’ ability to resist huge disruptions. The traditional linear supply chain model is transforming into digital supply networks (DSNs).
  5. Build resilience. The top performers knew that they couldn’t avoid future disruptions, so they worked towards a future that could withstand future shocks and, more importantly, anticipate them.  Some questions to ask… did you build a culture of trust and accountability? Did you have enough cash on hand to weather the initial storm?  Were you able to cut cost to “race and not chase” the drop-in revenue? Did you have an IT disaster recovery plan in place?  As a leader, you must anticipate and plan for these.

These five steps will increase the likelihood you will survive and thrive in the future.  Take inventory of where you are now and face reality.  Consider your company’s position.  Once you know where you are, and you start planning for the futures, ensure that what you are doing today will bring about the end of the crisis tomorrow. How must you transform your business to thrive and succeed in the future?

New Paradigm Advisors believes you deserve to enjoy the benefits of a profitable, growing and well-run business. We help you break out of the old way of doing things and attack the new economy with a renewed passion and focus. For more information about transitioning your business, please reach out to us.  We’d love to hear from you.

The New Paradigm Advisors team

Preparing to Open: What I Learned from My Daughter, Small Business Owner and Entrepreneur

Governor Greg Abbott of Texas announced the plan to re-open the State’s economy much to the excitement of many and much to the frustration of others. Those on the open list are really excited. Those on the delayed list…not so much. My daughter is one of the latter. She will have to wait another three weeks to open.

Christy, is a hair stylist and one of the 33 million small business owners that the government has yet to figure out are the real drivers of our economy.

After getting past her irritation at having to wait another three weeks, she already has her plan in place to ensure her clients’ safety and confidence when they come to her salon (making Dad, the business consultant, really proud).  She’s thinking the way she should: “What should I be doing now to not just do business but to thrive in the next economy?”

Christy has created a handout to give to each of her clients when they arrive describing all the steps she’s taking to ensure their safety. It includes a list of the things she’s doing to keep the space and all of her brushes, combs and utensils clean. She’s already sent her existing clients this list along with some suggestions of things they can do to help. One request of them is to text her when they arrive at the salon and then stay in their car until they receive her return text that they are clear to come in. This helps avoid contact between clients.

This lady is thinking!

She’s putting herself into the future and asking:  “Is this enough? What else can I do to make sure I can continue to do what I love?  And do it regardless of what the economy is doing and, definitely, regardless of what the government is saying is being done.”

What about you? Is this your mindset? What are you doing and what can you be doing? Maybe you’re one of the many businesses who has benefited from the PPP or EIDL loans. Or maybe even from the expanded unemployment benefits program. Even so, there is a “now” and there is coming a “later.”

The government programs are a “now”. You are the “later.”

What’s your plan? Are you collaborating with your team and outside advisors in preparation? Is everyone aware of this planning? Do your employees, customers, and suppliers know what you’re doing to ensure their safety as they work with you?

Babe Ruth said: “Yesterday’s home run won’t win today’s game.” Are you still playing yesterday’s game with yesterday’s rules? My daughter sure isn’t. She’s fully into tomorrow’s game and how she’s going to be an active player.

As a leader, you’ve got it in you to be thinking of today’s game and tomorrow’s game and the new rules. If you need someone to collaborate with on the challenges of all of this, feel free to call me. I’m your fellow wayfarer in this.

Oh, and by the way, if you’re looking for a great stylist, let me know. I’ll hook you up!

Blessings my friends.

The Challenge of Working Remotely

Welcome to the world of working remotely. How’s it working out for you?

I’ve been working remotely for quite a while now and it’s been interesting to watch people trying to do it. It is a bigger challenge than you think. It takes more discipline than first expected.

The bottom line is you have to have the mindset of:  “I’m going to work every morning.”

The three things that should be your mantra:

  1. Get up!
  2. Dress up!
  3. Show up!

By now, you’ve probably seen plenty of social media posts of people dressed from the waist up, keeping their shorts or pajama bottoms on.

Funny.

However, here’s the problem with that: your self-image and your attitude are influenced by how you are dressed. You should really be dressed for the occasion. Maybe one level above what your audience expects, whether they are in person or online.

Personally, if I know I don’t have any meetings scheduled, it’s easy for me to dress casually or truthfully super casual for the day. Meaning, weekend clothes and that might even mean yard working or outdoor hobby clothes. But, if I know I’ve got meetings or even a serious working agenda for the day, I’m dressing up for it. It’s what I call “doing the Full Monty” in the morning. Meaning shower, shave, and appropriately dressed, ready for meeting anyone. No shorts, flip flops or sloppy clothes. I’ll admit that this is pretty easy for me because I’ve been doing it for so long. Let me encourage you to get into this habit. Keeping your professional hat on so to speak is going to help keep up your attitude and focus.

Next thing is to have a dedicated work space. Make it look like a dedicated working space, even if it’s just a corner in your dining room. Figure this out. As it is right now, we’ll all be in our home working space for another four to eight weeks. Don’t be sloppy. There are some benefits of doing this:

  • It is a space that when you walk into it, you’ll be mentally preparing yourself for work.
  • When you walk out of it, you’ll be able to leave that work behind.
  • If it’s a space you can close the door on, you can really close the door on it – both when you’re inside it and when you leave it.

Get in the habit of this. Oh, and don’t bring your cereal bowl to work with you in the morning. Go eat, brush your teeth, check your hair one more time, and come to work.

Finally, if you’re anticipating doing more online, face-to-face meetings on Zoom, FaceTime, or other similar platforms, then, for goodness sake, be conscious of your surroundings, especially your background. There have already been so many social media posts of some pretty funny incidents of people doing their online meetings. There has even been one where a lady took her phone into the bathroom and, well,  you get the point. They’re all funny or a bit tragic in this lady’s case. The point is you don’t want to be “YouTube Famous.” Be conscious of your surroundings when you’re doing these calls and meetings.

We’re all going to be working like this for the next while. Let’s make the best of it and do our best at it.

Let me know how you’re doing.

Dave

What Now?

You are facing a downturn in the economy and business. What do you need to be doing right now?

Do you keep people or let them go?

What about your vendors and suppliers?

And what about your customers?

Consider the airline oxygen mask concept. Put your mask on first so you can ensure you’ll be able to help someone else get theirs on. You know this drill.

Your highest priority as a business owner is to protect the life and health of the company. Do everything you ethically can to keep the company alive. It’s like the federal government whose number one priority is to defend the country. It doesn’t matter how the economy and other parts of society are doing. If a foreign adversary attacks us and the government isn’t ready to defend us, then we all lose! Defend your company first!

Not your salary. Not your assets. And, unfortunately, not your employees.

Once you’re committed to this first priority, the decisions on everything else become clear. Notice I didn’t say easier. It’s clear what you must do to keep the company alive. Also be clear on the benefits of this commitment to all concerned once the crisis has passed:

  • Employees have an opportunity to find another job or to file for unemployment.
  • Vendors have someone they can collaborate with and possibly provide some temporary relief to in hopes of saving a valued and long-term customer.
  • Your best customers will be much more understanding than you think and quite possibly be willing to help.

Once the downturn is over and the company has survived, you can:

  • Hire back the people you laid off or new people.
  • Perhaps earn a favored customer status with your vendors.
  • Have customers who have a new respect for you and the company.

The real secret sauce here is to communicate with each of these groups. Go beyond just communicating. You must implement what we call the Three C’s:

  • Communicate
  • Collaborate
  • Cooperate

These are part  of our Core Values here at New Paradigm Advisors. If you apply these three C’s to the situation, we can assure you that your stress level will go down. It won’t go away.  However, it will go down. Apply the three C’s with your people, your customers, your advisors, and your vendors. You will be shocked, yet pleased,  with the results.

Call or email us and let us know your experience. Let’s learn together.