Business Record - Iowa Biz

Work: The Means or the End?

 This time of year gives us pause to evaluate what life has given us and what more do we want from life.

When we evaluate life we have to evaluate work, since this is where most of our time is spent.  How do you evaluate your work - is it the means or the end?  The end, meaning it consumes your life and negatively impacts all other life activities or...The means, meaning work feeds a full and balanced life.

We can choose the answer ourselves, but the culture of our company plays heavily on this choice.  A company that supports a culture where it is a priority for employees to attend the ball game, music recital or visit the sick family or friend in the hospital, will get back ten times more effort from their employees.  The saying "the more you give the more you live" is so true.

There are many companies that support the scrooge mentality that work is first no matter what.  The rest of your life is captive to the demands of work and there are no alternatives.  Work is the end and when the ghosts of Christmas come calling, these companies will suffer in the end.

To put it in perspective, a year from now, five years from now, ten or twenty years from now, what will you remember?  The fact that you missed a half day or full day from work or the fact you missed the ball game, music recital, or failed to visit the sick family or friend.  What will be your answer when the ghosts of Christmas call on you?  The means or the end?

Company for Sale?

The economy is slowing coming back.  People are beginning to realize that the values that existed before the crisis will not be seen again for some time.  The new values of homes, businesses and the stock market are not going to be over inflated as before.

Business owners that were thinking of selling their companies are starting to test the waters again.  The value of their businesses may not be what they once were and the values are based on a new market reality.  Owners are realizing that it is time to move forward.

When looking at the impact of our financial crisis and how it impacted everyone's net worth, employee ownership is one of the best ways to transfer ownership of a business.  One employee ownership methods for transitioning ownership of a business is an ESOP (Employee Stock Ownership Plan).  The following is a short list of the benefits of using an ESOP as a strategy for selling a business:

• Owners of C corporations can realize significant tax savings if they sell at least 30 percent of the company to the ESOP.
• S corporations that are 100 percent ESOP pay no corporate tax (providing certain state laws).
• The equity of the business is spread broadly to all employee owners.
• An ESOP is a qualified retirement plan that is governed by the DOL & IRS (giving some comfort to employee owners that there are rules to play by).
• ESOP companies, with participatory cultures, will out perform their non-ESOP competitors
• Employee owners have greater control over the value of their accounts in an ESOP as compared to an IRA or 401k.
• The owner gets the satisfaction of sharing future equity with the employees who helped build the business.

Any business owner that is considering selling his or her business would be amiss to not evaluate if an ESOP would work for them.  There are many more benefits than those listed above and there are disadvantages that need to be considered.  An ESOP can provide benefits to the owner, the business and the current and future employees.

A Paint Can of Cookies

Gifts come in many ways, but I was very surprised the other day when I received a UPS package that contained a paint can.  Needless to say I was very curious as to what the paint can contained.  It was a "welcome to the team" note with cookies from my new employer RSM McGladrey.  I have not even started the position and they are sending me a signal of their culture . Very impressive.  Even more impressive is an agenda for my first day that includes lunch.

What are the signals your culture sends to new employees?  Do they wait in the lobby with no conversation, wait for follow up calls or emails, have no idea of what the first day will bring or is it the standard paper work and then get them to work? 

First impressions are powerful and difficult to change, just as it is difficult to change a company's culture.  One of the greatest tools in changing company culture is new blood.  New employees bring no baggage and are eager to prove themselves.  They will be the first to accept change and step up to take on new challenges.

If culture change is a priority for you, it may serve you well to examine the process you use in bringing new people to your company.  It may be time for some new paint.

Recession 101

The other day I saw a billboard that had this message:  "Recession 101: Self Worth Beats Net Worth."  What a wonderful message in these trying times.

I have had several conversations in the past weeks with people who feel tired, worn out, beat up and defeated.  The constant pressure is tearing down their self worth.  They are giving their best efforts to keep their businesses alive and profitable, but they feel like they are dropping the ball.

Many organizations say that their people are their greatest asset.  I fear that even those that truly do care about their people are beginning to cave in to the pressure of this recession.  The constant bombardment of bad news makes it difficult for individuals to feel like they are making a difference.

I have a "feel good" file that I pull out when I am feeling down or frustrated. I pull it out and read the kinds words that have been given to me by my friends, peers, customers and supervisors.  It usually takes about five minutes to read and I am on my way to being refreshed.

If your organization is feeling the pressure of the economy and morale is low, you may try a "feel good" event.  Conduct a meeting where all you talk about is what you have done well.  Get people talking about all of things you have done right.  You will be amazed at how it will give new energy to your organization and make it a brighter day for all.  We all can use a little help sometimes in remembering that we are good people and have done great things.

It Is All About Perspective

Have you spoken or heard the phrase "Walk a mile in my shoes and then you will understand?" This saying clearly explains the power of perspective.

Understanding the perspective of individuals, work teams and the organization is critical when implementing change.  In many cases organizational change has unintended consequences for failing to appreciate the perspective of those impacted by the change.

You may think that everyone is in the front row ready to take action, but there are most likely groups that are in fear of the front row.  Understanding others perspectives is like peeling an onion.  It will take some time, it may well stink, the stink may linger and may not go away easily, and there could be tears involved.

Making the decision of what is right or wrong is not easily decided until you can appreciate why a person is the way his or she is.  This appreciation takes time, effort and patience.  

It will not eliminate hard decisions, but it will lead to a stronger culture based on respect, responsibility and acceptance.  Remember, we each have our own skeletons in the closet!

The Power Of Passion

My father has lived alone the past two years and has just recently started to see a wonderful woman. The other day, he made this statement to me: "Vacuuming and dusting the house is not so bad when you have a good reason for doing it." He has a new passion for life and it has changed his perspective at all levels (he was married to my mother for 40+ years, the only women in his life until two years ago).

I am sure that all of you can relate to the feelings that my father is experiencing. It is truly amazing what happens to individuals and organizations when passion has been lost. Daily tasks become burdensome, we start to question why we do what we do, and cynicism comes alive. Our energy seems to leak away and we feel like we can never make any headway.

Why is that organizations and individuals loose their passion for life? It is fear, lack of knowledge and getting stuck in the rut.

It is safe to stay in the rut or routine of life or work. We know what to expect and it is simple. As time goes on the safety is comforting, but everything starts to dull and tarnish as we continue to do the same thing. Gaining new knowledge can change this. New knowledge allows us to change perspective and gives a new luster to the former dulled and tarnished tasks.

The lesson, as my father would advise, is to face yours fears and take the first step. There is knowledge to be gained everywhere. Break out of the rut once in while to truly see what life has to offer.

Find your passion and you will find a new way to live life. 

Because They Care

Caring is a trait that many believe is a good trait in organizations. Many hours of training, worrying and even tears are spent by leaders, employees and families in the pursuit of caring.

Yet, as with anything in life, too much of it can be harmful. You may ask yourself - how can you care too much?  Caring too much is harmful when it invades your personal life and when it inhibits the growth of others.

There are leaders and employees that will sacrifice their own families because they care about what happens to the organization in an extreme way. These individuals also have a tendency to expect others to care as much as they do. When this occurs, it creates a lot more organizational stress than what people may think.

Individuals that care too much can also have a tendency to take care of all problems. This behavior does not allow for others to make mistakes and then learn from them. Mistakes are in many cases the best opportunity for individuals to experience critical learning that becomes part of their behavior.  

Does your caring come with a cost to others?  If so, you may need to take a step back and make some adjustments.

Finding Fresh Eyes

Remember years ago as a child looking for the elusive four-leaf clover in the yard?  The hunt could last for hours as you strained and focused on trying to find the lucky piece of clover.  Eventually, you started to wonder if it really existed.  Then your mom or dad would walk up and see how you were doing.  The look of frustration on your face explained the situation all too well.  They sat down and within minutes they would find the four-leaf clover.  The same story can be told for working on puzzles, coming up with ideas and changing the culture in your company. 

The fact that you did not find the clover sooner is not due to a lack of effort, knowledge, or willingness.  It is that your eyes and perceptions become clouded due to your intense focus.  That is why your parents found the clover so quickly – they had the fresh eyes.

Those responsible for changing company culture to improve the bottom line and their employee's lives, sometimes suffer from the same tired eyes as the child hunting for the lucky piece of clover.  They have the want, knowledge and willingness, but blinders have narrowed and clouded their view of the company and its employee owners.  They become frustrated, cynical, and start to lose the passion once at their fingertips.  It does not take long for the company to begin to mimic the same symptoms.  This is a time when you need to find ways to re-energize your eyes or bring some fresh views into your world.   

Does this sound familiar?  You preach the same ideas, practices and stories, but it seems to have no impact.  It is similar to how parents sometimes feel about their children – they just do not listen or get it.  This is opportunity where an outside influence may be the answer.  In the family it may be a grandparent, aunt or uncle, or a good friend that can help the child to understand.  In organizations it can be the independent board member, an outside speaker, consultant, or even your customers.  These resources bring the fresh eyes that can see issues clearly and provide solutions.  Do not be afraid of the “outside“ perspective. 

Do not let the routine of business, personnel issues, or individual habits restrain you and your organization from reaching new heights.  Take the actions that can widen the view of possibilities to increase the bottom line and enhance your employee's lives.  Remember that fresh eyes are the best eyes!

 

 

The Cause of Plane Crashes

What do you think is the number one cause of plane crashes?  Many people answer birds, lack of sleep, weather and other reasons.  Pilot error is the macro answer.

In his book, Outliers, Malcolm Gladwell gives a mirco answer for plane crashes - the PDI (Power Distance Index) rating.  The PDI was created by a Dutch psychologist, Geert Hofestede.  PDI is one of "Hofstede's Dimensions", a paradigm used in the world of psychology. The PDI is concerned with attitudes toward hierarchy.

Gladwell points out in several plane crash examples how PDI was strongly correlated to the cause of these crashes.  Simply stated it was the fear of questioning authority that led to these fatal crashes.

What is the PDI in your company's culture?  If you think is does not matter, then think of those who died on these plane crashes.  Those passengers counted on the crew in the cockpit to safely fly them to their destination.  Similarly, employees count on the company for a pay check, benefits, education and social interaction.

How easily do your employees question authority in your organization?  Their questions and the answers to them may very well be a silver bullet waiting to kill your organization or it may be the saving grace for your organization.  Create the culture and take the time to hear the questions and answers of your employees before you experience a fatal crash.

Is Your Contingency Plan In Order?

Image via Wikipedia

The economy is struggling, a vital customer quits ordering, you loose a key employee, or a natural disaster strikes – is your business ready for these types of scenarios?  Great businesses answer YES and they may even be offended if someone asks.  

The reality is that most businesses have not given the time to create a contingency plan.  Why? Below is short list of reasons:

• Business is thriving

• It requires discussion on tough issues that typically are avoided

• It takes too much time

• We are rock solid and do not have to worry

• Poor management

Contingency planning is equally as important as your annual business plan or your strategic plan.  Remember that you have a group of employees, owners and their families counting on the fact that business survival means their own survival.

Without a contingency plan, recovery from a tough situation becomes difficult and may lead to the death of the business.  Gather your key people, talk about the issues that could drastically impact your business and create a plan to cope with the issues.  Contingency planning should be a part of sales, profit and stock growth planning. 

Do not wait for the storm to happen, make sure you are equipped and ready when the storm arrives!

Victor Aspengren