|
|
|
Ready,
Aim, Fire -- The Real Value of Strategic Planning
|
|
|
|
|
Our mission is to provide information and strategies
to business owners and managers for improvement
in the effectiveness of its business management
so that key objectives can be realized.
|
|
Ted Hofmann
- Principal/Senior Consultant
John Morre - Principal/Senior Consultant
Linda Panichelli - Principal/Senior Tax
Consultant
CFO Plus, LLC
1450 Grant Avenue, Suite 102
Novato, CA 94945-3142 |
Home Office |
: |
415-898-7879 |
Toll
Free |
: |
866-CFO-PLUS
or 866-236-7587 |
Fax |
: |
415-456-9382 |
Email |
: |
thofmann@cfoplus.net
jmorre@cfoplus.net
lpanichelli@cfoplus.net
|
Website |
: |
www.cfoplus.net
|
|
|
|
|
|
Ready,
fire, aim. Wait, the sequence is wrong! But, does
this sequence describe the way you do business?
Unfortunately, many of today’s businesses “fire”
first and “aim” later in an effort to seize an
opportunity in the marketplace. While this particular
strategy may yield some positive results in the
short term, it may have a different effect in
the long term. So, what can you do to avoid this?
Strategic planning offers options!
Strategic
planning may best be summed up by the words of
one of the country’s most prominent business authorities,
Peter Drucker. According to Mr. Drucker, “Strategic
planning does not deal with future decisions.
It deals with the futurity of present decisions.
What we have to do today is to be ready for an
uncertain tomorrow.” The idea sounds simple enough.
In fact, in the 1960s the popularity of corporate
strategy sky-rocketed and nearly every CEO earned
his keep by categorizing, analyzing, quantifying
and predicting. Through these exercises, it was
believed that one could plot a strategy that would
safely steer a company to the threshold of success
and beyond. By the 1980s, however, U.S. companies
found themselves fighting for market share with
their global competitors. In the struggle to catch
up, corporate America began the infamous trend
of reengineering. While reengineering may help
squeeze a little more profit out of operations,
it does little to generate a distinctive competitive
advantage. That is where strategic planning comes
in!
No
longer a top-down, internalized process, today’s
strategic planning process brushes with a broad
stroke and encompasses a variety of perspectives,
models and approaches. Goals-based planning is
the most popular approach. Goals-based strategic
planning offers some striking benefits. By focusing
on the organization’s mission and vision, it offers
a mechanism to establish goals, strategies to
achieve those goals and realistic action plans
– all while ensuring consistency with the company’s
core values. Documenting this provides a basis
from which progress can be measured.
The
real benefit of strategic planning is in the process
itself, however, and not the resulting documents.
Working through the process ensures that all the
organization’s leaders are “on the same page”
which means that valuable resources are focused
on the same priorities. By establishing the process,
companies can also react quickly and methodically
to changes in the marketplace rather than firing
first and aiming second. Finally, resulting from
direct involvement in the process, strategic planning
may give employees a sense of ownership. Many
times, this leads to more efficiency, effectiveness
and even greater innovation.
Wondering
how to start the process? Companies typically
have the most success with outside consultants
or facilitators. This is especially true when
the process has not been conducted before or previous
planning was not deemed successful. Despite the
obvious savings of using an internal facilitator,
outside consultants offer objectivity and will
most likely increase, rather than inhibit, open
participation.
Who
should be involved and how long will it take?
Assembly of the right team is critical and it
should always include the CEO and Chairman. Some
representation from the other end of the spectrum
is a must as well, so that upper management can
get a better grasp on day-to-day issues and junior
staffers can grasp top-level issues. Most importantly,
those individuals who will actually implement
the plan must be included. The process, itself,
can take several months to complete though numerous
factors can impact it including the size of the
organization and whether the organization has
done this sort of planning before. In general,
it is important to have the meetings fairly close
together to keep the momentum going and, remember,
no plan is perfect so the object is to learn from
the process and not to belabor the process until
the plan is perfect.
Implementation
and Follow-up. A frequent complaint about strategic
plans is that they produce a document that ends
up on the shelf collecting dust. To succeed, the
support of top management is essential from the
onset. Before the planning process begins, however,
a strategic analysis must be conducted. Conducting
a thorough SWOT Analysis (Strengths, Weaknesses,
Opportunities and Threats) is a good start. Relying
on what planners perceive about the business environment
they operate in nullifies the entire process.
Finally, realistic and specific action plans must
be established followed by regularly scheduled
status checks.
Ready,
aim, fire. Now that sounds better and when it
comes to business, it’s the magic formula. As
skilled strategic planners, we can facilitate
your next strategic planning session. Give us
a call to fire toward your future target.
|
|
|
|
|
|
|
Systems,
Systems, Systems
|
|
|
|
|
Our mission is to provide information and strategies
to business owners and managers for improvement
in the effectiveness of its business management
so that key objectives can be realized.
|
|
Ted Hofmann
- Principal/Senior Consultant
John Morre - Principal/Senior Consultant
Linda Panichelli - Principal/Senior Tax
Consultant
CFO Plus, LLC
1450 Grant Avenue, Suite 102
Novato, CA 94945-3142 |
Home Office |
: |
415-898-7879 |
Toll
Free |
: |
866-CFO-PLUS
or 866-236-7587 |
Fax |
: |
415-456-9382 |
Email |
: |
thofmann@cfoplus.net
jmorre@cfoplus.net
lpanichelli@cfoplus.net
|
Website |
: |
www.cfoplus.net
|
|
|
|
|
|
A
recent report by the Office of Advocacy of
the U.S. Small Business Administration (SBA)
shows that over 99 percent of the country's
employers are small businesses. If you are
the owner of a small business, do you find
yourself working IN your business or ON your
business? If you are working in your business,
read on to learn how having the right systems
in place could help you make the transition
to working on your business.
Working
IN Your Business Versus ON Your Business.
Working in your business simply means that
you are involved in the making of routine,
daily decisions. After all, who else is going
to make them? The word vacation is probably
not even a word in your vocabulary because
your business would suffer too greatly in
your absence.
Working
on your business is another way to say building
your business. To think about it another way,
consider the president of a large, multi-million
dollar corporation. He or she has probably
never thought once about making their own
coffee, answering the phone in the reception
area or processing the outgoing mail. There
are, of course, people in place to handle
these activities, but more importantly, there
are processes established to make sure each
activity is done the same way each and every
time, no matter who does the job. This way,
the more mundane facets of the business continue
to deliver consistent results without the
input of the president and his or her efforts
can be concentrated on building the business.
Systems.
Systems. Systems. So, you are tired of
the daily grind and ready to try something
new.
Think about systems. No, we are not referring
to your computer systems. Systems, in this
instance, are synonymous with your business
processes. Implementing systems is essential.
Instead of depending on random acts – or worse
yet luck – to make things happen, systems
build a framework that turns random acts into
highly defined actions. The documentation
of step-by-step instructions allows you, the
business owner, to leave the business without
the worry that your employees can’t mind the
company wheel. With good systems in place,
your business should become almost like a
turnkey operation so that you can spend your
time and energy working on the business itself.
To
get started with the process, act as if you're
going to replicate your business multiple
times, having each location perform in the
exact same way, regardless of the composition
of the staff at each particular location.
Your charge is to build a prototype for each
functional area that will produce consistent,
predictable results. If this task sounds daunting,
there is help!
The
E-Myth Academy. Michael Gerber, best
selling author and founder of The E-Myth Academy,
has dedicated the majority of his career to
the E-Myth or the myth of the entrepreneur.
The myth is that people who run businesses
know how to do the work of an entrepreneur.
In reality, understanding the technical aspect
of a business is completely different from
understanding how to build the business itself.
The
E-Myth Mastery Program is a business development
system that produces two life-changing results.
It produces businesses that work and business
owners who are free to live the lives they
want. The program focuses on seven areas or
what Mr. Gerber calls the seven centers of
management attention. These include leadership,
marketing, money, management, client fulfillment,
lead conversion and lead generation. The program
also provides information on the business
development process for those who need direction
after implementing systems in each area of
their business.
Mr.
Gerber often uses an overly simplistic and
amusing analogy about making coffee to demonstrate
how a system can be implemented in a given
business. In a nutshell, his coffee making
action plan details each critical step required
to make coffee as well as accountability and
due dates/times. He even covers standards
to be adhered to at all times, including ways
to differentiate the regular from the decaf
and cleanliness issues. If a good cup of coffee
is important to you, this process leaves no
room for error!
Think
about this famous quote by Benjamin Franklin,
“The definition of insanity is doing the
same thing over and over and expecting different
results.” If working in your business
is driving you to the brink of insanity, consider
breaking free from those binding business
chains through systems implementation. Let
your business work for you – not because of
you. Besides that, your travel agent is waiting
to book that long overdue vacation.
Give
us a call today. We’ll use our knowledge of
performance management to unleash the processes
and systems that are sure to unlock your business
shackles. We’ve helped successful entrepreneurs
increase cash flow, improve productivity and
enhance their business lives in as little
as two months. We can do the same for you!
|
|
|
|
|
|
Our mission is to provide information and strategies
to business owners and managers for improvement
in the effectiveness of its business management
so that key objectives can be realized.
|
|
Ted Hofmann
- Principal/Senior Consultant
John Morre - Principal/Senior Consultant
Linda Panichelli - Principal/Senior Tax Consultant
CFO Plus, LLC
1450 Grant Avenue, Suite 102
Novato, CA 94945-3142 |
Home Office |
: |
415-898-7879 |
Toll
Free |
: |
866-CFO-PLUS
or 866-236-7587 |
Fax |
: |
415-456-9382 |
Email |
: |
thofmann@cfoplus.net
jmorre@cfoplus.net
lpanichelli@cfoplus.net
|
Website |
: |
www.cfoplus.net
|
|
|
|
|
|
For
a majority of America’s workforce, the weekend
offers a much needed opportunity for relaxation
and rejuvenation. Quite often during the course
of a weekend, we find ourselves wrapped up
in conversation for hours on end with someone
near and dear. Generally, the conversation
will meander through a variety of topics from
current events to more abstract discussions
including what you plan to do when, not if,
you win the lottery. Now, imagine the weekend
is over and you are sitting in your Monday
morning staff meeting struggling to keep your
eyes open.
Sound
familiar? Well, think about this. Does your
meeting format bear some striking similarities
to the conversation you had over the weekend?
If you are unclear about the purpose of the
meeting or find yourself and your colleagues
failing to make any decisions, you might just
be passing time again. Without a doubt, that
is not the intended purpose of any meeting.
To
Have a Meeting or Not to Have a Meeting?
Today, it seems as though the resolution to
each and every business issue begins with a
meeting. While some meetings simply can not
be avoided, others can – and should. Before
you organize a potentially unnecessary meeting,
consider some other ways to accomplish your
objectives. If it is advice you seek or you
have a need to disseminate information, many
tools are at your fingertips including a simple
email, phone call, or impromptu hallway conversation.
So, when is it appropriate to conduct a meeting?
- |
To
inform workers about changes that will
impact them directly. |
- |
To
build consensus – the success of a project
may depend on it. |
- |
To
assemble the information required to make
a sound decision. |
- |
To
brainstorm. The synergy of the team may
yield results greater than those provided
by each individual. |
- |
To
deal with highly complex topics. |
- |
To
provide a forum for conflict resolution. |
Okay,
so you think having a meeting is the right course
of action. What can you do to conduct an effective
meeting in addition to having a well-defined
purpose? You must plan for the meeting, assign
action items during the meeting and make provisions
for assessment afterwards.
Planning
– The Benefits of an Agenda. To have
an effective meeting, there needs to be a
clear understanding of the objectives to be
accomplished. Following that, there must be
a determination of who needs to be in attendance.
Other logistical arrangements such as time
and place may follow at this time along with
the designation of someone to take minutes.
It is very important to document who was there
and exactly what decisions were made. What
else? An agenda.
An
agenda is always a good idea to keep focused
on the task at hand. An agenda typically includes
such items as a review of notes from previous
meetings, a discussion of new issues and an
evaluation of progress toward goal achievement.
To build an effective agenda, it may be a
good idea to seek topic ideas from team members.
If participants know that their topic of concern
will be addressed, they are less likely to
interrupt! On the other hand, if the topic
does not fit into the overall purpose of the
meeting, it should not be included. Finally,
the agenda should be distributed well in advance
of the meeting. This allows participants to
prepare, thereby making the meeting far
more productive.
Conducting
the Meeting. Many meetings fail because
no one person is facilitating the meeting
or because someone is dominating the meeting.
Acting as a facilitator, you may want to establish
and enforce some ground rules at the onset
to enhance productivity. The starting time
and planned duration needs to be decided on
and adhered to. In addition, participants
should be prepared and, at all times, mutual
respect should come into play. Finally, as
facilitator, it is your job to keep the discussion
on course. Sticking to your agenda is a good
way to do this. And remember, as a general
rule, new issues that arise during the course
of a meeting are best handled in another meeting
or off-line.
Assigning
Action Items. All right, your meeting
is going well and decisions are being made.
If no plans are being made to implement those
decisions, however, the train is leaving the
tracks. To resolve this, specific action items
need to be assigned along with dates for completion
and plans for assessment and reporting by
the appropriate parties.
Meetings
can be a positive communication tool! Planning
allows for more accomplishments in less time.
By working to improve your meeting skills,
your whole team benefits.
Want
to improve your efficiencies in other places
as well? As performance management consultants,
we can help you maximize productivity in many
areas of your company. Give us a call today.
|
|
|
|
|
|
|
Ten
Steps to Better Receivables
|
|
|
|
|
Our mission is to provide information and strategies
to business owners and managers for improvement
in the effectiveness of its business management
so that key objectives can be realized.
|
|
Ted Hofmann
- Principal/Senior Consultant
John Morre - Principal/Senior Consultant
Linda Panichelli - Principal/Senior Tax
Consultant
CFO Plus, LLC
1450 Grant Avenue, Suite 102
Novato, CA 94945-3142 |
Home Office |
: |
415-898-7879 |
Toll
Free |
: |
866-CFO-PLUS
or 866-236-7587 |
Fax |
: |
415-456-9382 |
Email |
: |
thofmann@cfoplus.net
jmorre@cfoplus.net
lpanichelli@cfoplus.net
|
Website |
: |
www.cfoplus.net
|
|
|
|
|
|
We should’ve known a recession
was coming. All of a sudden, our best clients
who usually paid in 10 days were paying closer
to 30 – sometimes 45 days. In every industry,
cash flow plays a role, but in some such as
health care and auto dealerships there are many
areas where outstanding receivables can wreak
havoc.
Slow payment is one of the toughest issues small
businesses face. However, you don’t have to
take it lying down. There are ways to better
manage payments. Follow these guidelines to
securing prompt payments month after month.
1. Revise terms. With the recession,
many companies changed terms from 30 days to
10 or 20 days. Some even made invoices payable
on receipt knowing that customers would pay
in 30 days.
2. Extend credit only when necessary.
Credit is a privilege – not a right. An increasing
number of companies face more stringent guidelines
related to obtaining credit terms. Many companies
routinely work with companies that do not extend
credit or work on a cash-only basis. Depending
on your customer profile, this may work to help
you increase cash flow.
3. Check references before extending
credit. From office supplies to printers,
more and more companies require businesses asking
for credit to complete credit applications and
provide references. Join them to ensure your
customers are credit-worthy.
4. Ask customers to sign a credit agreement.
If, in the future, you need to collect money
owed, a signed credit agreement will put you
on solid ground. A credit agreement also ensures
that all credit details are fully disclosed.
5. Set a credit limit for each customer
account. Limiting customer credit accounts
allows you to manage risk and exposure. Even
large customers need limits. Vendors for Enron
discovered how just how quickly one large customer
can put a company out of business.
6. Establish purchasing processes.
Ensure all orders are made in writing and adhere
to both your purchasing policy and
your customer’s.
7. Send invoices immediately.
Some companies have become so good at this one
dimension of collecting that they put the invoice
on any goods delivered. The client receives
the good and the bill all at the same time.
There’s no room for float on receivables handled
this way.
8. Make invoices easy to read.
Invoices that don’t clearly denote the purchase
order number, or that fail to list the good
or service provided have a chance of ending
up in the “problem invoice stack,” which means
a delay in payment for you. Revamp invoices
if needed to ensure they are paid without delay.
9. Keep collections tidy. Establish
a process, keep records of customer contact,
and follow through on the collections process
– even if it means hiring a collections specialist.
You’ll earn the reputation of being a fair yet
firm company. If an invoice is partly disputed,
ask for immediate payment of the undisputed
part, then resolve the dispute separately.
10. Resolve problems early.
If a company regularly pays promptly, and has
started to pay more slowly, investigate to see
what has changed. It may be a precursor to problems
ahead.
As simple and straightforward as these steps
are, they can help you increase cash flow and
avoid problems with receivables. If your business
has many divisions or areas where cash flow
can be an issue, give us a call so we can help
you collect more even faster than before.
|
|
|
|
|
|
|
Coaching:
Can You Benefit?
|
|
|
|
|
Our mission is to provide information and strategies
to business owners and managers for improvement
in the effectiveness of its business management
so that key objectives can be realized.
|
|
Ted Hofmann
- Principal/Senior Consultant
John Morre - Principal/Senior Consultant
Linda Panichelli - Principal/Senior Tax
Consultant
CFO Plus, LLC
1450 Grant Avenue, Suite 102
Novato, CA 94945-3142 |
Home Office |
: |
415-898-7879 |
Toll
Free |
: |
866-CFO-PLUS
or 866-236-7587 |
Fax |
: |
415-456-9382 |
Email |
: |
thofmann@cfoplus.net
jmorre@cfoplus.net
lpanichelli@cfoplus.net
|
Website |
: |
www.cfoplus.net
|
|
|
|
|
|
Are
you a professional athlete? Or a performing
artist? Chances are good that you don’t fit
into either of these categories so why, in
the normal course of your life, would you
need a coach? Well, not all coaches go to
work in a jogging suit or leotards. There
is a whole new category of coaches out there
ready to motivate and guide you down the path
to success. Today, you can hire a coach to
help you achieve your personal, family and
business goals. Coaching provides the support
and structural mechanisms that are needed
to help you focus on your priorities, remove
barriers and learn from your own experience.
The ideal coach will listen to you and challenge
you. They will also encourage you to take
control of both your professional and personal
life so that you can strike a healthy work/life
balance.
What
can you accomplish while working with a coach?
If your goals are personal, coaching can help
you:
- |
Clarify
priorities |
- |
Deal
with personal problems that are interfering
with productivity |
- |
Determine
career direction, strategy and income
goals |
- |
Establish
and achieve personal goals including ones
relating to relationships, health and
spirituality |
- |
Help
you create daily habits to support your
goals
|
If it is professional assistance you seek, a
coach can help you:
- |
Clarify
your business mission, goals and strategy |
- |
Communicate
effectively in the workplace |
- |
Cope
with difficult co-workers and employees |
- |
Develop
leadership skills |
- |
Increase
productivity |
- |
Make
better decisions |
- |
Tap
into hidden strengths |
Why hire a coach? Well, coaching is different
from seeking advice from a consultant, a therapist
or a friend. Consultants usually offer answers
to specific problems. Therapists help you understand
and deal with the anguish of past problems.
Friends typically lend a sympathetic ear. Some
describe a coach as part consultant, part motivational
speaker, part therapist, and part rent-a-friend.
How
does coaching work? Coaching is normally
done privately though not always. Professional
coaches typically conduct an initial face-to-face
meeting. Then, most of their work is handled
over the phone. Following the first meeting,
a coach can begin to develop a plan for you
to accomplish your goals as well as set up
a structure for working together. You can
expect coaching fees to range somewhere between
$250 and $1000 per month if you average one
session per week. Highly specialized coaching
can approach $2,000 per month and may include
several face-to-face sessions and 24/7 on
call availability.
What
to Look for and Where. Coaches typically
have a specialty – career, relationship, business,
etc. It is best if they have had some coursework
in their area of expertise as well as some
training in psychology and counseling. Though
coaching has been recognized as a profession
since the late 1980s, coaches are not licensed
by any state or national agency. They do,
however, typically belong to organizations
such as the International Coach Federation
(ICF). This organization offers a free coach
referral service so you can select one that
will mesh with your specific needs.
A
Business Coaching Success Story. The
value of a business coach is documented by
a recent article in Illinois Realtor Magazine.
According to this article, Dr. Fred Grosse,
a clinical psychologist and renowned business
coach, has dramatically improved the life
of many realtors and insurance agents around
the world. Dr. Grosse uses a sports analogy
to explain the importance of business coaching.
“No one at the Olympics got there without
a coach.” He continues on to say that you
need a coach to be a superstar in the business
world as well. Dr. Grosse coaches in a group-setting
and covers topics including: reframing thought
patterns, focusing, establishing a morning
ritual, and establishing systems within our
businesses. A single realtor from one of his
group sessions claims to have increased the
number of transactions made from 43 to 95
during the course of a single year. Not bad!
To
hire a coach and be successful, you must have
at least one goal that requires you to grow
and improve as a person. You must also be
committed to achieving your goal and willing
to try new things in the process. Regarding
your coach, it is imperative to select one
that not only has the appropriate experience,
but with whom you feel mutual respect and
trust. Your coach must be equally committed
to your success. And remember, you are hiring
someone to motivate you, so enthusiasm is
a must as well. No matter what type of coach
you select, you can bet that you will reap
benefits in many facets of your life.
We
have coached many businesses to increased
performance, if this is one of your goals
for 2004, it’s not too late. Give us a call
today!
|
|
|
|
|