The Waves of Business

Dream. Plan. Action. Success.

2009-07-07T00:14:00.000-07:00

"We choose to go to the moon." John F. Kennedy

The key to any new endeavor is to dream first, develop a plan, and take action. I just watched a video of John F. Kennedy's speech titled We Chose to Go to the Moon. In this speech to the nation JFK challenges the nation to become the first country to send a man to the moon. At the point of history when this speech was made America did not have the technology to send man to the moon. However, John F. Kennedy was determined to lead this country, through the use of it's resources, into space exploration. The speech was prophetic and JFK led America to become the initiators of space travel, an accomplishment never dreamed of in generations before.

John F. Kennedy once said, "There are risks and costs to a program of action. But they are far less than the long-range risks and costs of comfortable inaction."

Good planning is the next step to fulfilling the dream. A person who dreams and immediately acts without planning lacks wisdom. A wise person sees the end-goal, the dream, and determines the steps that are needed to get there. This does not mean every detail must be attained before taking action, but it does mean that a general course of action is thought out in order to fulfill the dream.

As General George S. Patton said, "A good plan, violently executed now, is better than a perfect plan next week." Many people make the mistake of spending so much time trying to develop the perfect plan that they become frozen for their fear of failure. A plan should always leave room for modification and flexibility. The step of planning should never hinder action, but focus the action.

"We need men who can dream of things that never were." John F. Kennedy (Dublin, Ireland; 1963).

Frederick Douglas & Business Ethics

2008-08-03T17:42:00.000-07:00

"If there is no struggle, there is no progress." Frederick Douglas

I have recently finished a biography on the former civil rights leader Frederick Douglas and the story of his life solidified some of my opinions about the importance of business ethics. Recently we have seen the collapse of companies such as Enron and World Com, which fell apart because of moral issues of the company's leadership. This has reminded me of the need for businesses to evaluate themselves not only through financial statements and products sold, but to also look at the overall way that the business is being run. Is it ethical? Is the company truly what it claims to be on paper.

Frederick Douglas was an escaped slave who refused to be quieted concerning the modern slavery of his time. He was a black man who was viewed as business property rather than being viewed as a man. Frederick lived in a time of American history when businesses used black slavery as a human resource that made many white businessmen rich.

The study of slavery and business brings out interesting parallels that teach us about the crucial need to judge the success of our business on more than just balance sheets. This time period in America also shows the need to treat humans as more than just business resources, which is the way many companies view their employees today. Luckily slavery in America is in the past, but if we do not learn from the past we are bound to repeat it. Businesses need to be careful that they do not grow so concerned about the balance sheet that they forget about the people behind the numbers.

Business Tools: Executive Summary

2008-08-01T15:26:00.000-07:00

Typically an Executive Summary is at the beginning of a business plan and is a summary of the highlights of the particular business. Why does it matter? In the modern day of quick pitches to financial investors an executive summary can make or break a company before it even starts. The summary is not necessarily the substance of the business plan in 200 words. It is the essence and energy of why the business is a viable investment. This is the "attention grabber". No, it is not a quote, story, statistic, or shocking statement made in a speech, but a condensed version of why the business needs to be started.

One main aspect of almost any business is the financial returns that business will bring about. This is why an executive summary should include the basic return the investor should receive from their investment. This can be either financial or social depending on the type of business and the organization's objectives. Typically this is a financial figure regarding market share, forecasting, and current market trends. In this portion of the summary you should let the investor know how your company will make the investor a massive amount of money.

Another part of the executive summary can address the problem that the business will solve. This part of the summary may point out the niche market that the business will capture, or the way the business' product will differentiate from other industry competitors. In this section a company should use research that has been done in order to make it clear what business problem the company will solve. Not only should it define the problem in the industry, but it should also conclude what processes will be implemented by the business in order to solve the problem. By the time the investor analyzes this part of the business plan the investor should have a clear understanding on why the business needs to be started. If the investor cannot see the need the investment opportunity will most likely be lost.

The web is full of executive summary examples and tips. Here are a few a found beneficial: steps on how to write the summary and executive summary samples. Let me know if there are other executive summary resources that you have found helpful!

Business Tools: Benchmarking

2008-07-29T14:07:00.000-07:00

One amazing tool for any business to improve itself is to benchmark other companies that have proved to be successful. Benchmarking is the process of looking at other company's best practices in order to implement those practices to better the business. This tool can also be used to measure what the competition can do.

The tool of benchmarking can be used in the industry that the organization is in, or it can be used in a completely different area. GE used Motorola as a benchmark for a new quality process called Six Sigma. This process of eliminating waste helped GE attain record revenue numbers and it helped the company stay ahead of the Japanese manufacturing processes that caused the downfall of many American companies. GE not only implemented the Six Sigma system that Motorola developed, but it also adapted the Six Sigma processes to the service industry. The financial success Six Sigma practices provided many companies is astounding, and the Six Sigma system has become one of the best known quality initiatives in companies today. GE's use of benchmarking is now being benchmarked by other companies that are looking to restructure their quality processes. This is what benchmarking does. It takes the best practices of other companies and implements these practices into making businesses better and more productive.

For more information about the basics of benchmarking check out this article found at About.com. The business tool of benchmarking is valuable to any type of organization, or it can even be used personally as a way for self improvement.

Jack Welch & GE

2008-07-28T22:40:00.000-07:00

Jack Welch quotes about change:

“An organization's ability to learn, and translate that learning into action rapidly, is the ultimate competitive advantage.”

“If change is happening on the outside faster than on the inside the end is in sight.”

I have been reading a lot about Jack Welch and his amazing leadership endeavors with GE. When he took over GE in the 1980's the company looked decent on paper, but trouble was looming. Mr. Welch had the ability to see the real condition of the company in light of the rising manufacturing ability in Japan. This ability to see the industry trends allowed him to lead GE through the necessary changes the company needed in order to be successful in the future.

One of the key philosophies that made Jack Welch so successful was his ability to create a flexible culture within GE. This was not an easy task, and he received a lot of criticism for it, but his philosophy of constantly being able to adapt to change paid off in the financial success of the company. During his tenure GE was transformed from a company that relied almost completely on its manufacturing to a company that became known for its unsurpassed quality in service related industries. As a matter of fact, GE was the first company to take the Six Sigma quality tool and use it for the service industry.

Obviously there is a lot more about Jack Welch I could write. If you are interested in learning more about him and his management philosophy I encourage you to get his book, "Winning".

Please leave a comment and let me know if you have any other Jack Welch information that would be useful for our readers.

Performance Goals

2008-07-19T16:37:00.000-07:00

Evaluating your goals and objectives on a regular basis is crucial to seeing if you are on the right track. Roy Rogers once said, "Even if you are on the right track you will get run over if you just stay there." The same can be said about achieving your personal and business goals.

In business there are three main scorecards that show you whether you are on the right track. The three evaluators are financial, marketing, and stakeholder scorecards. Just as in sports it is vital to keep track of the score. Why? The scoreboard helps you evaluate the strategy that should be used. For instance, at the end of a third period of a hockey game a team may completely remove the goalie if they are behind one goal. This is because having an extra offensive player gives them a better chance at scoring a goal and sending the game into overtime. These same concepts found in a hockey game can be used in developing business strategies that directly relate to your company's position in the marketplace. If you are the market leader you should have a different strategy than a company just entering into the industry.

How do you practically use these scorecards to improve your business? A financial scorecard is the most popular scorecard used by managers and executives. This scorecard is used by evaluating financial statements and revenue projections. The obvious reasoning behind this scorecard is that businesses need to make money, and this is clearly seen through financial reporting. However, this is not the only indicator of a company's condition in the industry.

Many companies collapse because they have concentrated so much on the financials that they failed to see that customers A company should also look at the marketing scorecard in order to see the market share and what opportunities are available to expand that market share. The marketing scorecard also helps a company evaluate the customer satisfaction level with the company products and services.

The third scorecard is the stakeholder scorecard. This scorecard not only deals with public company stockholders, but also with strategic partnerships with other companies. Not only is it important for a company to evaluate its relationships with customers, but it is also especially crucial for a company to evaluate its relationship with stock holders and strategic partnerships.

You can find more information about these scorecards by reading Philip Kotler's book titled Kotler on Marketing. This is a marketing classic by one of the foremost authorities on marketing.

What is the Web Saying about You?

2008-07-19T14:58:00.000-07:00

Online networking has become an extremely valuable aspect of business. Employers, employees, friends, and casual relationships can get to know you through various online resources. This makes it vital that your online portfolio is what you want it to be. If you have not done it already Google search your name and see what pops up. You may be surprised! If your employer or future employer searched your name on the web would you be happy with what they found. This is a great question to ask yourself.

After you Google your name to see what appears consider ways that you can market who you are through different web tools. A couple of free online tools that I have found to work well are blogging, a FaceBook account, LinkedIn, and Twitter. Blogging can be a great way to promote business ideas, or to allow people to connect with you on a personal level. However, make sure your careful what you blog about. You never know who will see it. LinkedIn is an excellent online business networking tool. Unlike Facebook and MySpace, LinkedIn is specifically designed for business people to network with each other. On the site you can see who your contacts have networked with, and if it is someone you would like to get in touch with your contact can help introduce you. Finally, a FaceBook account seems to be a good networking tool. Everyone seems to have a FaceBook account, so it is a super way to connect with relatives, friends, and business contacts. I have just started using Twitter, so find out for yourself if it something you can use to market yourself

Good luck!

"Twitpitch"? Watch your Mouth

2008-07-11T16:07:00.000-07:00

I just learned a new phrase, "twitpitch". No it's not a cuss word. It is a new marketing term meaning to summarize your business into about 140 characters (20 words). Why? This is the maximum length for a message on Twitter. Check out the article.

No longer are sales gurus and entrepreneurs allowed to use the 2-minute "elevator speech". With the speed of technology you are lucky to get a 2-minute conversation. Now you need to hook investors with one sentence. Go figure!

Don't know what Twitter is? Why should you care? Check out this article in BusinessWeek.

Virtual Management

2008-07-11T14:50:00.000-07:00

I recently read an article about the end of Line Managers as we know it. The article was about Peter Drucker's prediction about the future of management. Since he is one of the foremost authorities on management in this generation it would be wise for us to consider what he says.

A new form of "virtual management" is already starting to take shape where managers no longer meet face-to-face, but through web-conferencing and other forms of internet communication. The article stated, "The growing complexity of the workforce – the need to juggle a wide variety of individuals with diverse preferences and needs, and resultant dizzying array of relationships between businesses and those who perform work – drove Peter to predict that before long, line managers would turn over responsibility for long-term talent management to some type of central staff function."

One of the major benefits of this new form of management is that it allows companies to virtually eliminate travel costs. With the rising price of oil this is very important to a company's bottom-line.

Marketing and the UFC

2008-07-11T00:53:00.000-07:00

I have been very interested in the history and marketing strategy of the Ultimate Fighting Championship (UFC). Whether or not you agree with the sport of mixed martial arts you have to respect the organization's marketing plan. The growth of the sport and profitable revenue since Dana White took over the organization has been amazing. An article on Yahoo! stated that the company was purchased in 2001 for $2 million and today it's estimated worth is $1 billion. I like that profit margin.

The popularity of the sport and high revenue have not gone unnoticed however. CBS has launched there version of mixed martial arts called EliteXC. So far the EliteXC has had limited success competing with the UFC. Affliction, a clothing company, is also trying to win some of the mixed martial arts marketing share. The first Affliction event is scheduled for July 14, 2008 on pay-per-view, which is the same day as a free UFC event. This is no coincidence. Dana White and the UFC want to see the Affliction event flop.

For a well done comparison of the marketing strategy comparison between the UFC and Elite XC check out this article.