JoeTakashNo1VideoCan you really build morale in less than a second? Think about it. How possibly could it only take less than a second to boost the mood of someone – as well as a team?

According to Joe Takash, the president of Victory Consulting,  it can be accomplished by following a technique used by the late former UCLA basketball coach John Wooden (1910-2010). Yes, that’s right. He lived to be 99 years old.

In his latest Smart Connection video, “Build morale in less than a second,” Takash describes how Wooden used his “Thank You Rule.”

The key to his success was threefold.

No. 1, he knew his trade extremely well.

No. 2, he knew discipline extremely well.

No. 3, and maybe most importantly, Wooden knew people and how to motivate them.

Watch the video in its entirety here.

Joe Takash is the president of Victory Consulting, a Chicago-based executive and organizational development firm. He advises clients on leadership strategies and has helped executives prepare for $3 billion worth of sales presentations. He is a keynote speaker for executive retreats, sales meetings and management conferences and has appeared in numerous media outlets. Learn more at

Published in Chicago

Kim Shoemaker had a major dilemma in 2009.

Not only was her company, Acloché Staffing, trying to pull out of an economic recession, but its longtime CEO had died unexpectedly at the age of 56. Grief was high, morale was low, and employees needed to be reassured and inspired that the company was going to go forward.

Shoemaker, who previously held leadership roles in the company, had been named the new CEO and set out to overcome the heavy challenges.

“My first charge was to increase morale, to show appreciation and to really build on the staff,” Shoemaker says. “I think that’s extremely important to make your team feel appreciated, improve on that and lift their spirits up. There was a lot of uncertainty among our staff and the business community regarding the future of our company.”

As a first step, she found it effective to have one-on-one conversations with staff members to determine what they were feeling, what they needed and what they thought they were lacking professionally.

“Then, you need to deal with those individually to help them grow, to be stronger individuals and to be stronger team players,” Shoemaker says.

“We looked at our processes first and went through how we did things and redesigned them ? we streamlined them, made them more efficient,” she says. “We tried to help people with their day-to-day productivity.”

While proposing what to do to improve morale, Shoemaker hit upon the idea to redefine the company to reassure the market that Acloché was alive and well, ready to assist.

“We had been in business since 1968, and there had to be something that we could be doing to market ourselves better ? to let people know that we were here and that we were here to help the business community,” she says.

She brought in an outside consultant to work with the sales and marketing team to reinvent the company’s image, keeping the same branding but introducing the company again to its clients and embedding itself in each of the communities where its 10 offices are located.

When employees are encouraged to participate in the decision-making process when new ideas are formulated, successful results occur.

“Present the processes or procedures that you are going to consider to your sales and management team, get their thoughts, opinions and feedback; then take that information and fine tune it,” Shoemaker says.

When the final tweaks have been made, let the operations team review the proposal.

“This is very successful because staff members see that their managers are excited about this innovation or this new process and they’re getting their team members’ input before decisions are made that affect the entire team.”

As with many changes, there may be those a little hesitant to get on board. However, if they give their input regarding the change factor, it makes it a lot easier to accept and implement the change.

“They have a voice and an opinion in the entire process,” Shoemaker says. “I think people feel more at home with it. They feel more involved with it and part of the entire process.”

For Acloché , the approaches Shoemaker took to step in as the leader, improve morale and redefine the company continue to pay off. The next year saw $33 million in revenue, and the company is ranked among the 100 largest privately held companies in Central Ohio.

“Any time that you’re doing anything new, get the buy-in from your internal staff because it’s important for them,” Shoemaker says. “It’s important in order for the entire process to go well if they have buy-in on the decision-making end.”

Turning over a new leaf

Some say if you don’t make innovation a priority for your success, you’re bound to fail, and Kim Shoemaker, CEO of Acloché Staffing, can testify to that.

“Innovation is critical in any business,” she says. “In order to compete, you need to regularly redefine your strategies and reposition yourselves in order to continue to grow.

“The only way to stand out is by constantly offering new services and presenting new ideas.”

Client feedback is worth its weight in gold when it comes to innovation.

“Go in, listen to what their needs are, to what their challenges may be and what their successes may be, and redefine yourself to that specific client to help them so they can focus on their core business needs,” Shoemaker says.

Failing to keep fresh may lead to a loss of your place in the market.

“You would stagnate,” she says. “Employees would not grow to their potential to be able to service their clients.

“I think it’s an ever-evolving business community, and if you do not keep up with it and evolve and even try to stay a step ahead of it, you’re going to be losing market share,” she says. “You will not be the partner that people would need you to be.”

How to reach: Acloché Staffing, (614) 416-5600 or

Published in Columbus
Tuesday, 22 February 2011 14:13

Style points

Ralph Scozzafava had just walked off the plane, but he already knew Furniture Brands International Inc. had a safety problem at one of its factories in Mississippi.

“The guy that picked me up at the airport had some dried blood on his pants from one of our key associates on the production line that had just cut their finger and been brought to the hospital,” Scozzafava says.

Unfortunately, safety wasn’t the only concern for Furniture Brands when Scozzafava arrived in early 2008.

“We were low on cash and we had a pretty big debt balance and really some liquidity questions and concerns,” says Scozzafava, the company’s chairman and CEO. “We also had declining margins and increasing administrative costs to the point where our operating margins were approaching zero and ended up negative very quickly. There were a lot of things happening at the same time, all taking us to a very difficult place.”

But before he could address any of those concerns, he had to get people in the company to realize that there was, in fact, a problem that needed to be addressed. The furniture retailer has 6,500 employees in the United States and 2,000 more employees abroad.

“A lot of folks just thought, ‘Hey, we’re going through a bit of a rough patch,’” Scozzafava says. “If we don’t tell people where we are, in a lot of cases, they just don’t know. So it’s informing. We have a problem here. It’s an issue. We have to change, and we have to change intelligently and quickly.”

It was time for Scozzafava to start talking and get everyone moving on the changes that needed to be made.

Start a dialogue

One of Scozzafava’s most pressing concerns, in addition to making the company safer for employees, was that he needed to generate some cash for Furniture Brands. The company was losing a lot of money.

“We had over $300 million in debt, we had $27 million in cash, and we were losing money on the operating line,” Scozzafava says. “You don’t last long with a business of our scale if you’re doing that. So the big thing for us was to generate cash.”

In this type of situation, you can’t just go to your people and say, ‘Hey, we need to generate more cash.’ You need to show them what they can do as an individual or as a group to help you solve your problem.

“If they don’t have line of sight, ‘What do I need to do to help?’ you’re not going to get the full engagement that you really want to get,” Scozzafava says.

In other words, spare the corporate lingo and Wall Street clichés when you’re speaking to your employees.

“Use words you would use with your family,” Scozzafava says. “Relate some interesting stories. Try to make things sticky if you can. The state of the union address as told with your best formal English doesn’t help. If you use every business cliché in the book, you’re not sincere. If they feel like you’re not sincere, if it feels packaged, they’re not going to listen. It’s not going to be compelling.”

Scozzafava needed to get his employees engaged in coming up with a solution for the company’s cash concerns.

“I tell our folks, ‘I’m going to tell you everything I can as fully and clearly as I can as many times as I need to so you fully understand,’” Scozzafava says. “And then I’m going to ask lots of questions so you can do the same with me. If you have that kind of dialogue, there’s really nothing up anybody’s sleeve.”

It has to be a dialogue, meaning two-way communication, and the best way to achieve that is to get out of your office.

“You’ve got to penetrate the organization,” Scozzafava says. “My direct reports will feed me info that is good, informative and interesting. But if I want to know about the supply chain, I’m going to go down on the factory floor and talk to a lot of people. If I want to know how our retail stores are doing, I’m going to go to retail and I’m going to ask a lot of questions and visit 10 stores.”

And if you want to know about a possible safety concern, you’re going to go visit one of your factories.

“I went on the factory floor and saw what we were doing and how we were operating the equipment and I knew we had a safety problem,” Scozzafava says.

Scozzafava discovered that multiple factors were leading to the cash issues. Safety problems were caused by improper use of equipment and were affecting product quality. This was affecting the margins and ultimately leading to the problem with the cash.

It’s the kind of information that you can only get when you approach your research with an open mind.

“The temptation is I want to bucket things,” Scozzafava says. “I’ve been doing this for 30 years and I’ve observed a situation and the knee-jerk reaction is to say, ‘Oh, that’s just like …’ and name a situation, something you’ve gone through before. When you do that, sometimes you miss it all together. Most of the time, you get it close, but you miss the nuance and you really can’t get a good clear assessment.”

Create accountability

As you begin to generate dialogue and ideas to make your company better, you need to create accountability to make sure that the ideas are investigated and implemented if they turn out to be viable.

Safety was one of Scozzafava’s biggest worries with his business.

“What are the safety ideas?” Scozzafava says. “We’ll put them on a bulletin board. Those ideas have initials next to them. Who gave us the idea? They have a date of when we’re going to evaluate it and get it solved and when we’re going to implement it.”

An idea was raised to install sewing tables in one of the factories that could be raised or lowered to help eliminate repetitive motion injuries.

“When are we getting the tables in?” Scozzafava says. “When is it getting installed? When is it finished? It’s about the idea, evaluating the idea and putting people in place who are accountable. Put their names next to the task and then finish the job.”

When you create ideas or metrics for employees to live by, they need to be ideas that are objective in nature like the sewing tables.

“There are certain things that you can measure very well,” Scozzafava says. “Those are very data-oriented things that you should use as the core of what you measure. The things that become matters of opinion, if you make that a focal point of what you’re doing and lots of people give their points of view, you’re going to struggle. Cut-and-dried measures are always the best.”

Work with each department on what it specializes in and help the department come up with measurable goals that help the company.

“So for example, 2008, we’re here to generate cash,” Scozzafava says. “But we’re also going to work on building our brands, and that’s the work the marketing people will do. We’re also going to work on getting more efficient in our factories. That’s the work the supply chain people will do. You can go down the road. The finance team has to centralize finance and accounting and accounts receivable and accounts payable and credit. That’s the work they have to do. So there’s the singular big goal we’re all working on and then there are pieces within the company that individual groups do to make us better.”

You have to keep pushing the importance of initiatives and making sure accountability is part of all of them.

“You think you’re saying it enough, because you’re thinking about it all the time and you’re talking to your direct reports or your executive team about the same subject all the time,” Scozzafava says. “So that repetition is something you just assume is going through the organization. And it’s not. One of the things I’ve learned is you have to tell them, you have to tell them again, you have to tell them what you told them, you have to ask if they understand it, tell them again, have them repeat it, quiz them.”

So if you think you’ve delivered your message enough after all that, you might want to do it just one more time to be sure.

Show appreciation

When you ask employees to help make your company better and they step up and do just that, you need to show them that you appreciate their efforts. By doing so, you increase the odds that others will follow their lead.

“Good people want to do well,” Scozzafava says. “They want to be part of a winning team. If they see their peers somewhere else within the company performing very well and being recognized and rewarded for that performance, they typically not only want to mirror that, they want to do better. If you get the right people and treat them right and tell them what they need to do and listen to the ideas they have, it’s powerful.”

You can show your appreciation in a number of ways. There are the gift cards and cash bonuses that all employees are grateful to receive. But your ability to show appreciation and gratitude can also go a long way toward helping your business be successful.

“When you have the title, until they meet you, there is always going to be some kind of trepidation,” Scozzafava says. “People want to get it right or they want to make a good impression. If they see you as a regular person, if you get information and you do something positive with it and you’re not looking around trying to zap somebody or catch somebody, pretty soon they understand what your intention is. If it’s a positive intent, they’re going to share more and more with you.”

Scozzafava’s ability to get people to buy in to his effort to turn things around at Furniture Brands is showing some signs of success. While net sales dropped from $1.7 billion in 2008 to $1.2 billion in 2009, the steady loss of cash seems to have been stopped. And safety on the job is better than it’s ever been before.

“It all goes back to the build, win, deliver, grow strategy,” Scozzafava says. “[Employees] know that’s what has taken us from losing $400 million in 2008 to losing over $100 million in 2009 to making money through the first three quarters of [2010]. They know if we stick to that strategy, if we’re aggressive and prudent about how we change, differentiate and do things better, we’re making the problem go away.”

The key is to stay focused on helping your employees help you.

“If you expend your energy and feel spent, you’re probably not doing enough within the organization to drive the kind of morale and camaraderie and high-performance culture you want to create,” Scozzafava says.

How to reach: Furniture Brands International Inc., (314) 863-1100 or

The Scozzafava file

Ralph Scozzafava

Chairman and CEO

Furniture Brands International Inc.

Born: Danbury, Conn.

What was your first job?

I worked for my dad; he was in the refrigeration business. One guy, one truck. Probably from age 6 to 7, I knew all the tools in the toolbox. I could wire things, run pipes, weld, I could do a lot of stuff. I haven’t done it recently. But give me the stuff, I’m sure it would come back.

What is the best advice you’ve ever received?

Hard work and common sense. My uncle said if you can just master those two things, you’ll be successful in anything. He was an entrepreneur who did very well and had no education and those were the two pieces.

If you could sit down with anyone in the world, past or present, who would it be and why?

I’d like to have dinner with my dad.

Scozzafava on public speaking: I’m real big on bullet points. I’ll have slides without many words on them. I may have a little scrap of paper in my hand that may have 6 or 7 thought starters on it. Each message that I’m trying to get across, I try to have an accompanying story.

I try to make it engaging. I draw people out of the audience a lot. I’ll call people by name and I’ll ask them to stand up and talk about things so that the message is what I’m going to call multi-medium. Part of it’s on the screen, part of it’s in a video, part of it’s a story from Ralph, part of it’s a story from the audience. You have a lot of different stimuli coming at you.

Published in St. Louis

When other leaders opted for layoffs and furloughs to combat the recession, Ingrid Lamirault called for reinforcements.

“It didn’t make sense to make wholesale changes in the employees,” says the CEO of Alameda Alliance for Health. “They knew what they were doing and, more importantly, they understood our mission. It made more sense to bring in someone to support the organization. This was about making people see their own potential, boosting people’s self-confidence and helping people understand how to behave corporately.”

Lamirault hired a business coach, bringing Anna Scott on board to develop some of the 130 employees at the nonprofit managed care health plan, which had $227.5 million in revenue for the fiscal year ending in June 2010.

“If you’re going to develop somebody, it really sends a positive message to the company as a whole that they value their people,” Scott says. “It really helps the morale. It develops loyalty by the employees (because they see), ‘This company is investing in me and helping me grow.’”

Initially, Lamirault picked several employees with untapped potential.

“I recognized that there were some people I could promote, but they would need support in the beginning, because they’d never supervised a team of people before,” she says. “There were other people who had a really good work skill but they ran into a lot of interpersonal conflict. There were a couple who had really good potential, but they would make mistakes and wallow in them instead of learning from them.”

You may not be able to forecast someone’s potential but, as Scott says, you can tell when employees are getting in their own way of growing.

“Danny,” for example, was a high-level employee in the Alliance’s IT department. He was good at his job but didn’t handle interpersonal conflict well. On top of that, Lamirault worried Danny wouldn’t get any further in his field without a college degree. She suggested he attend both coaching and college.

“It’s not that he doesn’t have interpersonal conflict anymore, but he handles it in a very healthy way,” she says. “If someone’s not respecting him, he knows how to deal very directly and tell them that this is what he feels and this is what he thinks he brings to the project.”

When you approach those employees with the coaching opportunity, you have to frame it as just that – an opportunity. It’s not an assignment or a requirement.

“It’s a positive,” Scott says. “It’s a way to say, ‘I really believe in you, and we see that you have something to offer. We also see that there are ways that you’re getting beside yourself and we want to help you.’ It has to be mutual. (We) want to invest, but if they are not interested, (we) won’t force it on somebody.”

Coaching relationships at the Alliance begin with manager-imposed goals to help employees perform their jobs better. But you can’t separate your business initiatives from their personal motives.

“I get really clear about, ‘Here’s what Ingrid has said she’d like you to develop,’” Scott says. “Then I go, ‘What would make it worth it to have you do this? What else do you see in yourself that you would like to develop?’ It’s one thing to do something for somebody else, but when you’ve got your own skin in the game, (you’re) more willing to fully participate.

“If they don’t do those things that Ingrid wants, bottom line is, they’re not going to have a job. But if they’re not satisfied with who they are and what they’re achieving, they won’t do a very good job. By being able to focus both at the same time, people are so much more satisfied. When people are struggling in their personal lives, work really does suffer.”

How to reach: Alameda Alliance for Health, (510) 747-4500 or; Anna Scott Consulting, (510) 919-2254 or

What’s in it for you?

Investing in employees strengthens the overall organization, but who would have thought your leadership skills would benefit from the effort? Ingrid Lamirault, CEO of Alameda Alliance for Health, learned that when she focuses attention on her employees, she reaps some benefits herself.

“Anna had started telling people to be more direct and to say what they feel,” Lamirault says, referencing Anna Scott, who coaches her employees one-on-one. “It makes me have to speak very directly with them or she’ll tell me, ‘You seem to have some indecision about some changes you’re making, and it’s making people very nervous.’

“A couple of times, she’s told me the way I’m handling something is creating turmoil so it’s made me recognize how I need to improve my own leadership skills. It makes me aware of some of the language that I use. And so … I have changed, too.”

Be conscious of how you can grow along with your employees, because their development doesn’t happen in a vacuum removed from your leadership.

“No action is by itself,” Scott says. “If I’m not being clear, then my employee will not produce the results I want. If I’m leading and I need you to do something, then it behooves me to go, ‘What is it that I need to do to be effective with you?’”

Published in Northern California

It was early 2009 when Gregory Jackson realized he might have a ticking time bomb on his hands.

Jackson is the founder, president and CEO of Jackson Automotive Management. Two years ago, the company owned Ford, Toyota, Mercedes Benz, Scion and Saturn dealerships in Michigan and Florida. The dealerships generated $1 billion in sales in 2008 and employed about 550 people.

But over the span of about six months from late 2008 to early 2009, the dominoes started to fall. A series of violent shockwaves hit the American automotive industry as the economy sank into its worst recession since the 1930s. ? General Motors and Chrysler both filed for Chapter 11 bankruptcy protection and, subsequently, underwent reorganization and streamlining. GM committed to moving forward with the Cadillac, GMC, Buick and Chevrolet brands, leaving the corporation to either find new owners for the Saturn, Pontiac, Hummer and Saab brands or discontinue them.

Jackson owned five Saturn dealerships, comprising half of his work force, which spent half a year on edge waiting for a definite word on Saturn’s future. In the summer of 2009, after a deal between GM and Penske Automotive Group fell through, months of waiting and wondering culminated with the worst fears of Jackson and his staff realized: Saturn was done. All new production was halted in October 2009, and all retail franchises would be closed by the end of October 2010.

“I can’t sugarcoat it. It was stressful, and it was very disheartening,” Jackson says. “There is nothing worse than to know someone’s family, walk in and tell them that they don’t have a job anymore — particularly when these were successful, profitable businesses just yesterday. There was a lot of crying among people. It was very emotional, due to the loss of jobs and the financial hardship you knew people were going to be under, both employees and managers.”

The death of Saturn tested Jackson as a leader and a communicator. He had to pilot his business through a devastating blow to morale and five dealerships’ worth of lost revenue, which dropped his company’s 2009 sales to $600 million.

What the circumstances reinforced to him was the principles of good business leadership: Keep your employees informed and make wise financial decisions.

Keep information flowing

The hardest pill to swallow for the employees at Jackson’s Saturn dealer was the fact that Saturn was a moneymaker for Jackson’s company. The cars were selling and the brand was still popular. When viewed from the store level, there was no reason to believe the dealers should ever be in danger of closing.

But car dealers are caught in the middle, between the purchasing habits of consumers and the top-level decisions of the automakers that supply the product. If one or the other stops supporting the dealer, the business is in jeopardy.

In any business situation, you have to realize what you can and can’t control. You can’t control market fluctuations, but you can control how your business prepares for and reacts to the fluctuations.

At Jackson Automotive Management, Jackson and his leadership team couldn’t control what was happening at GM headquarters, but they could control the flow of information.

“When we were going through all of this with Saturn, what we did was share information on an almost daily basis,” Jackson says. “We were getting information almost daily, when Penske was going to buy Saturn and then all of that blew up after we thought it was a done deal. When GM first announced it was going to close Saturn, there was some question as to whether they were really going to do it.”

With many questions bouncing around the shop and showroom floor and with few answers evident, Jackson kept in contact with the general managers of his Saturn dealers, making sure they had the latest and most comprehensive information available to disseminate to employees.

“Almost daily, the general managers were walking around their stores, fielding questions from employees,” Jackson says. “It was not unusual for the general manager to walk through the service department and a couple of technicians would come up and ask about something they had heard floating around. Before you knew it, five or six technicians would be up there talking to the general manager.

“The general manager would say, ‘I have this e-mail. Here is the latest word I’ve heard; you know as much as I know.’ The employees were appreciative of that. They took all the information in, and then they’d go and tell the rest of the people in that department, so everyone was up to date. There was nothing for us to hide.”

It is difficult to be frank and deliver the unvarnished truth when the news could hurt your collective morale and possibly your bottom line. But if you don’t fill the need for information, your people will. The rumor mill will pick up steam as employees take bits and pieces of news and try to form conclusions. The end result is usually destructive.

“The reality is, we’re human beings, your workers are human beings and we’re emotional,” Jackson says. “They are affected by everything from talking to their neighbor over the back fence, to talking with the lady ahead of them in the grocery line, to talking with their buddy at the bar. All of these people are giving them different stories. So you want to stop the effects of that immediately.

“You might try to create a few distractions to keep people’s minds focused on something besides the bad news. We had an event where we took all employees to see a Red Wings hockey game. We had a big ‘Sex and the City’ movie premiere night. It was just trying to have a few fun things to reduce the outside distractions and keep people loyal to the business.”

An outing at a sporting event or a staff movie night can be beneficial for taking employees’ minds off of the problems that the business is facing. But if the time comes to deliver bad news, such as layoffs or cutbacks, Jackson says you should remember that all good communication is rooted in honesty. The bad news you deliver is still miles better than the bad news you don’t deliver or try to sugarcoat.

“I’d say you have to handle it delicately but directly,” he says. “Again, the worst thing you can do is to not be completely honest with people about what is going on. The news media, the rumor mill, it’s always going to be alive and active, and the worst thing you can do is to be less than honest and allow people to carry rumors with them. You lose a lot of faith and people are emotionally distraught. You don’t want them to do something unhealthy for them or for the business in a highly emotional time.”

Take a conservative approach

The loss of Saturn hurt Jackson Automotive Management with regard to morale, manpower and sales. But in spite of all the negative fallout, the business remained on solid financial footing. Jackson attributes the resilience to a conservative financial game plan in which he emphasized rainy-day planning.

To endure bad financial times, you need to lay the groundwork when times are more prosperous. Jackson lays the groundwork for future success by limiting the amount of debt his business shoulders.

“One of the good things about our business is that we’ve never had a lot of debt,” he says. “As a result, we did have some cash and were able to weather the storm. We didn’t come out unscathed, but we were still healthy. We’ve always run very tight with regard to our expense structure, so when a lot of people started dialing back their operations, we didn’t have to do a lot of dialing back. We were already efficient.”

With some cash available, Jackson was able to open a new Mitsubishi franchise in Florida, and transfer some of his Saturn employees there, helping to cushion the blow for at least some of his people.

To acquire financial flexibility when the economy goes sour, you need to refrain from overly aggressive spending when times are good and you have extra cash in the coffers. Just because you have the cash to spend on a new venture doesn’t mean you always have to do it. You have to know when to pounce on an opportunity that makes sense for your business and matches well with your business plan and when to hold back.

“My philosophy is that if you maintain a level of conservatism, then you never have to have a fire drill,” Jackson says. “A lot of businesses went into a fire-drill mentality, because they were overly aggressive and maybe even greedy. They may be full of what Warren Buffett calls irrational exuberance. But I think if you maintain a level of conservatism, while still being able to jump in and out of an aggressive mode when necessary, that’s a good balance. A certain level of conservatism breeds safety.”

If you are going to take a chance on a new business opportunity, make sure it makes sense for your situation and make sure you have performed detailed research on the market potential of the idea.

“Don’t leverage yourself too much from a debt standpoint,” Jackson says. “Be careful about building it and hoping they will come. Don’t go out and build without an absolute certainty that the market is there. That’s not what a lot of dealers did. A lot went in and overbuilt. They built buildings and leveraged themselves out with extreme debt. Then, as cash flow slowed down, they couldn’t make their payments. That happened to businesses as a whole, not just auto dealers. So you want to have more expense structure than you think you might need. I believe in running things more tightly as opposed to loose.”

The way you maintain that level of control is to measure your goals, your finances and your spending habits on an ongoing basis. At Jackson Automotive Management, each dealer communicates its projected needs for the coming year to Jackson and his corporate leadership team. Jackson wants his general managers to think along the lines of a CEO, taking a wide-angle view to the next year’s projected expenditures, so there are as few surprises as possible.

“If you’re anticipating needing extra personnel, giving them raises or bonuses, you plan that out, put it into your forecast and approval process,” Jackson says. “That’s as opposed to a random manager promising a raise to an employee and then you end up adding that overhead as you go. Or worse, promising a raise and then realizing you don’t have the financial ability to do it, and then you have a morale issue on your hands.

“You have to have good financial controls in place to pilot a business through a recession like this. You need to have those approval processes for capital expenditures and the adding of personnel. A lot of that involves good yearly planning, which ensures that you can maintain proper control over those types of things.”

How to reach: Jackson Automotive Management and Mercedes-Benz of St. Clair Shores, (586) 773-2369 or

The Jackson file

Gregory Jackson

founder, president and CEO

Jackson Automotive Management

Born: Detroit

Education: Bachelor of science degree, accounting, Morris Brown College; MBA, Clark Atlanta University Graduate School of Business

First job: When I was a kid, I used to work in the local stores in my neighborhood taking out garbage. I was the kid out there hauling two-by-fours when the men in the neighborhood were building something. Later on, I had a paper route.

What is the best business lesson you’ve learned?

Cash is king. Without it, you can’t run your business. A lot of businesses are around now because they had cash, and they’re now poised to be major players because the industry has shrunk.

What traits or skills are essential for a business leader?

You need to have a strong understanding of finance. You need to have good people skills and the ability to make hard decisions with the knowledge that people are going to get hurt. You have to understand how your decisions will impact people’s lives, and then work to minimize the hurt.

What is your definition of success?

Success for me is having good, strong children who have grown up to be productive citizens. It starts with family. On the professional side, it is to create jobs and opportunities for people, participate in the world economy and make a difference there.

Published in Detroit