Since January 2006, when Jim Weddle first took over the managing partner position at Edward Jones, he has kept a keen focus on growing the investment firm to new heights. In 2007 he and his team laid out a five-year plan that they updated in 2010, but that was a mere steppingstone to the vision the firm rolled out last year.

In January 2012, Weddle unleashed what Edward Jones is calling its Vision for 2020. Focusing on growing the firm in three key areas — financial advisers, assets under care and households deeply served — Weddle’s vision won’t just have Edward Jones reaching new heights, it might just be soaring.

“Today, in a lot of markets, we are not the top-of-mind choice,” Weddle says. “We don’t have the presence that we need. It’s going to take us several years to get there, but we think we’ve got the way to do so.”

Edward Jones is a leader in the financial services industry that serves nearly 7 million clients with the help of 12,500 financial advisers and more than 34,000 total employees. The firm reported 2012 revenue of $4.96 billion, a mere fraction of what is planned for the years ahead.

“There is a huge demographic opportunity, and we need to better position ourselves,” Weddle says. “We’ve put a lot of tools in place. We’ve put additional products and services in place to enhance the client’s experience and to enable us and position us to do an even better job for them.”

Here is how Weddle formulated Edward Jones’ long-term vision and is beginning to make it a reality.

 

Create your strategy

In January 2012, Weddle made a big deal of explaining the long-term vision to the team at Edward Jones, not just what the vision was but why it was needed.

“Laying out a long-term vision provides the opportunity and the potential to get everybody aligned,” Weddle says.

The early success Edward Jones has seen with its plan is due to a thorough self-analysis the company performed when it first decided to create this vision.

“When we worked on our five-year plan we did so with the guidance and assistance of two gentlemen, one being Jim Collins who wrote, ‘From Good to Great,’” Weddle says. “One of the things that he suggests is that you ask yourself three questions.

“The first one is, ‘What do you do better than anybody else?’ The second is, ‘What are you most passionate about?, And third is, ‘What’s your economic driver?’”

Weddle says that Edward Jones’ business model makes the firm the better than anybody else in the investment process.

The firm is most passionate about helping its current and potential individual investors live a better life.

And lastly, its economic driver is its financial advisers.

“It’s not easy to get your arms around the answers to those questions,” Weddle says. “We had a lot of answers before we got it right.”

The second adviser that Edward Jones used in its planning process is Michael Porter, a world renowned expert on strategy, who preaches that strategy is all about a sustainable difference.

“It’s about doing things differently or doing different things than your competition and making trade-offs,” Weddle says. “It’s about making decisions as to what you’re going to offer and what you’re not. Who you’re going to serve and who you’re not. How you run your business comes down to the choices that you make.”

Those two things, the three questions and the tradeoffs, are the core of Edward Jones’ long-term plan.

“If you haven’t gone through the process of thinking those things through, good luck,” he says. “I don’t think you understand who you are or what business you’re in, which means it’s going to be very hard to optimize your results. That’s the value of the planning process for us. Yes, it does bring alignment, but it also brings focus.”

 

Identify your objectives

In order to better serve existing clients as well as to land many more clients by the year 2020, Weddle needed to set reachable goals for the staff.

“We have identified three peaks, three objectives related to that vision,” Weddle says. “First is growth of financial advisers, the number and our presence in the marketplace.”

Edward Jones currently has more than 7 million client accounts and 4 million households. However, the firm has identified about 40 million U.S. and Canada households that look like Edward Jones’ best clients.

“There’s no way that we can possibly serve even a fraction of that number of folks without increasing our presence in the market,” he says. “You might think, ‘Holy cow, how can you possibly to do that?’ Well, by growing 5-6 percent a year gets you there.”

Edward Jones has grown by more than that rate in the past, and Weddle believes the firm can reach this goal with the help of a new talent acquisition organization that was put in place, revamped FA compensation and significantly updated training and support programs.

“We anticipate supporting a good number of new folks that will be joining us each year,” Weddle says. “We’ve got amazingly strong pipelines right now. We think we’ll grow this year by 700 financial advisers in the U.S. and 80 in Canada and that will be a good start on that 2020 vision.”

The second objective of the 2020 vision is the firm’s assets under care. When the vision was first laid out, the firm had about $600 billion. In 2012 it had about $660 billion-$670 billion.

“By the end of 2020 we’d like to see those assets under care be $1 trillion,” he says. “You get there by growing 10 percent a year. We added about $34 billion of net new assets last year, which exceeded our objective of $30 billion.”

The third objective for the firm surrounds its deeply served households. Of those 4 million households Edward Jones currently serves, it identified 1 million households that the firm has a current deep relationship with. The firm wants to increase this number.

“We want to drive our deeply served households from the 1 million we had a year ago when we rolled out our vision to 4 million deeply served households in 2020. That’s a 15 percent compound annual increase and we’re ahead of where we need to be on that. I know 15 percent sounds high when we’re growing our FA’s by 5 percent and our assets by 10 percent.

“The reason we have set it at that level is because so many of our existing households can be moved to what we have defined as deeply served. It’s not just new households, but it’s going deeper with the folks that we already have a relationship with.”

 

Drive your plan forward

Now that Edward Jones had gone through the self-analysis and identified its objectives, the next step was to begin to roll out the vision and communicate how the business’ various departments and segments are going to have to contribute to meet those goals.

“One of the outcomes of the roll out of the long-term vision was to then say to every division of the firm, ‘We need you to look at the work you do and bring a critical eye to it and identify those things that need to be increased or put in place that will help us to achieve the 2020 vision. We also need you to identify the legacy work that we’re real comfortable with and we do really well, but maybe doesn’t add the value that it used to,’” Weddle says.

“You outgrow some things. You can’t just add on and add on and add on. You’ve got to also abandon things that no longer deliver value to your chosen client.

Every division of the company has got to come up with its business plan for reaching goals of the vision.

“We challenge each other, but it also allows me, if I’m in operations, to understand what the service side is doing,” he says. “It creates alignment and synergies and often times opportunities for working in a highly coordinated way that eliminates some cost and enhances productivity all driven by the vision.”

The No. 1 key to making a strategy implementation successful is having the right people driving results.

“Your results will be no better than the quality of the individuals who make up your organization,” he says. “You have to be brutally honest. At times you will outgrow some individuals.”

Sharing the business plans, challenging each other and making sure that everyone is working on the same priorities and holding people accountable is crucial to success.

“One area is dependent upon progress being made in another,” Weddle says. “We just need to make sure that we’re doing an absolutely terrific job for each one of those individual investors that we help to reach their financial goals. If we can stay focused on that we’re going to have a lot of success.” 


Takeaways:

  • Answer important questions about your business and its future.
  • Develop objectives to reach in a long-term plan.
  • Implement your plan with the right people and measures.

 

The Weddle File

Name: Jim Weddle

Title: Managing partner

Company: Edward Jones

Born: Elgin, Ill. He grew up in Naperville, Ill.

Education: Attended DePauw University and received a double major in psychology and business. He also got a MBA with a major in finance from Washington University in St. Louis.

What was your very first job, and what did you learn from it? I had a summer job in 7th grade where I worked Monday through Friday from 8 a.m. until noon for a gentleman who was a retired banker. He had a large property and I drove a tractor, cut the grass, pulled the weeds, painted the house and the barn and worked every day doing that. I learned that you make your own luck if you aspire to do or to have, there’s a way that you can go about making that a reality.

What is the best business advice someone has given you? I had interned here at Edward Jones, and I went out to Indiana where I established a new office and built it up. I had a mentor who was a very senior individual in our firm at the time named Jack. I remember confiding in Jack and he said, ‘What is your concern?’ And I said, ‘Jack, my concern is I’m 23 years old, and I look even younger. I’m afraid people won’t take me seriously.’ He said, ‘People will treat you the way that you act. If you act like a professional, they will treat you like a professional. If you act like you’re 23, they will treat you like you’re 23.’ He also said, ‘Prepare for every day, but do it the day before.’

Who is someone that you’ve admired? One was an accounting professor who had a huge impact on me. For his class he said, ‘You need to show up to class prepared or I suggest you don’t show up at all.’ He was teaching us how to be ready for the rest of our lives.

The second guy was a business adviser named Peter Drucker. We worked with Peter for 20 years. He helped us to understand very clearly who our customer was, what our value is, and the purpose of our work.

HOW TO REACH: Edward Jones, (314) 515-2000 or www.edwardjones.com

Published in St. Louis
Friday, 31 May 2013 20:00

Moving beyond, "What's in it for me?"

"Successful people are always looking for opportunities to help others. Unsuccessful people are always asking, ‘What's in it for me?’”  — Brian Tracy

If you listen to HR directors or marketers, they will tell you that the starting point — or at least a key — to influencing your stakeholders is to address the question, “What’s in it for me?” Often referred to in corporate speak as WIIFM, this is a legitimate question.

We all have an interest in ensuring that we have our needs met. Every interaction or relationship has a degree of self-interest that doesn’t qualify as selfishness. To ignore that is to guarantee our failure as leaders. But it’s not enough.

As leaders we need to recognize that people yearn for benefits for others as well. It is in our nature to be relational. In his book, “To Sell is Human: The Surprising Truth about Moving Others,” Daniel Pink suggests three qualities and three abilities that can enhance our influence in ways that are consistent with human nature and recognize that desire to make a positive difference in the world.

He first posits the following three qualitiesas the new ABCs of selling.

Attunement is described as the “capacity to take someone else’s perspective and calibrate your words and actions to another’s point of view.” It’s the challenge of communicating and delivering services and messages so others can understand them and receive them.

Buoyancy is defined as the “capacity to stay afloat on what one salesman calls ‘an ocean of rejection.’” What person hasn’t seen the value of persistence in the face of continual opposition?

Clarity is described by Pink as the “capacity to make sense of murky situations … and to move from problem-solving to problem-finding.”

Whether you’re selling a service, a product or serving on a school board, being able to see the factors contributing to the problem at hand is essential to helping others and moving them to effective solutions.

It is on the abilities side where an inappropriate focus on WIIFM falls short. The third ability that Pink points to is Service (the other two are Pitch and Improvise). He calls this “the final secret to moving others.”

Service is the foundation from which the other principles flow: If your sales force or you as a leader are not perceived as helpful, all the improvising, pitching, clarity, buoyancy and attunement won’t help you build a sustainable business. However, when people can see that you truly want to help them, these other principles can help you.

Pink breaks this ability down into two parts: make it personal and make it purposeful. One aspect of the value of making it personal is in recognizing those you’re seeking to influence as people.

Making it purposeful is seen in Pink’s examples of “emotionally intelligent signage,” such as a sign in a church lawn that says, “Children play here. Pick up after your dog,” rather than just “Pick up after your dog.”

Adding “Children play here” reminds people that it’s more than a rule. It moves from being a regulatory requirement to a reasonable request.

Finally, Pink proposes a philosophy of “servant selling.” Applying a “servant selling” framework to your need to influence your employees could lead to questions like,

“Will my employees’ lives be better if they do what I’m asking? When we accomplish our shared goals, will the world be a better place than when we began?”

So for organizational leaders, our three tips are as follows:

Make it personal. Move beyond solving a puzzle to serving a person.

Make it purposeful. How will this decision or business deal make the world a better place?

Make it possible. When leading employees make sure you give them the resources to get the job done.

Following these three principals will increase the probability that fewer people will ask, “What’s in it for me?”

 

Andy Kanefield is the founder of Dialect Inc. and co-author of “Uncommon Sense: One CEO’s Tale of Getting in Sync.” Dialect helps organizations improve alignment and translation of organizational identity. To explore how to align your efforts to move others to your organizational identity, reach Kanefield at (314) 863-4400 or andy@dialect.com.

Published in Columnist

When Flemming Bjøernslev took over as president and CEO of Lanxess Corp. and head of the North American region, he gave himself 100 days to get to know the company and the people. This January, the time was up — and by then, Bjøernslev had visited all 14 major sites in the United States and Canada.

“In my first couple days, I went out and took the pulse of the company to assess where we stood in order for me to prepare myself and the employees to take the company to the next level,” Bjøernslev says. “As an international corporation, we have global targets and the board at headquarters expects us to contribute to that target.”

He felt strongly about getting to rub elbows with the 1,500 employees of Lanxess Corp., the North American division of Lanxess, an $11 billion leading manufacturer of more than 3,000 products in the areas of rubber, plastics, intermediates (such as alcohols, acids and higher olefins) and specialty chemicals.

Bjøernslev came to Pittsburgh after serving as CEO of Lanxess Central Eastern Europe in Slovakia and now has the task of taking the learnings from his prior CEO role and transferring them to Lanxess’ North American business to continue to push the company forward.

Bjøernslev is optimistic about the current opportunities in the U.S. and how that will contribute to Lanxess’ business domestically.

“We are seeing a lot of manufacturing returning to the U.S.,” Bjøernslev says. “That gives me great comfort that the U.S. industries are moving forward to a better, brighter future, especially in the areas of mobility, urbanization, agriculture and water.”

Lanxess caters to all those areas and the current outlook has Bjøernslev excited that the business in North America will pick up rapidly, helping get Lanxess on the path to the next level.

Here is how Bjøernslev has come into a new role and put himself and Lanxess in a better position to succeed.

Take first steps

While Bjøernslev isn’t new to the CEO role by any means, he was still entering a new geography and new division of Lanxess when he came to Pittsburgh in October 2012. In his initial three-plus months, he had to familiarize himself with the business.

“In those first 100 days, I had to get to know the company and the people here in North America, which is Pittsburgh and our other sites,” Bjøernslev says.

He started with a couple of town-hall meetings and round-table discussions held department by department to interact on a more individual level with employees.

“I consider that extremely valuable to get to know the individuals and for them to get to know me and listen to what my vision is as we move forward,” he says. “I also visited all the major sites we have in North America. Again, we did a mix of town-hall meetings and round table discussions.”

Bjøernslev had a two-fold approach to his new CEO role, both internally and externally.

“The internal approach best practice for me has always been to sit down with the people and have them present their roles and responsibilities within the company in order for me to assess where we stand from a corporate point of view,” he says.

“The external part is presenting Lanxess to the outside world — customers, business partners and other relevant organizations we interact with.”

It is crucial that a new CEO put himself or herself out in front of the company’s stakeholders and offer the chance to get to know and understand one another.

“The key is to just take the hurdle of getting out there, getting to know the people, introducing yourself, introducing the company, introducing the target and tell a little bit about yourself,” Bjøernslev says. “That has been the focal point, and it is the best practice based on my experiences in previous jobs.”

Bjøernslev has learned that listening to the people who help drive the business every day is vital to understanding what direction to go in next.

“You have to listen to the people you are going to work with in the new position,” he says. “You have to watch the environment very closely and most importantly, listen to your gut feeling and be daring as you move along and make decisions.”

The worst thing a new CEO can do is hesitate in making those crucial decisions.

“We are all human beings and when you make a decision, you normally base it on experiences,” he says. “If you’re somewhat uncertain, human beings have a tendency to avoid making a decision. If you want to move forward in a new position, you have to make a decision, because avoiding a decision is not going to get the job done.”

Get to the next level

Lanxess is driven by innovation and technology paired with people excellence, both globally and locally. What Bjøernslev has found is that the company’s production and product base is extremely quick with regards to innovation, technology and the right ideas to make new products that will propel the company.

“At the end of the day if you take the people excellence, the topic of safety and blend that with the innovation and technology driven culture we have here at Lanxess, those are the keystones in order to create success that will take Lanxess North America to the next level,” Bjøernslev says.

When looking at what opportunities existed in North America, Bjøernslev saw the automobile market as a crucial player in Lanxess’ future with the ability to offer new products in rubber and plastics.

“The U.S. market is still the biggest market in the world for miles per person driven,” he says. “What I have realized over here is that Americans love cars. With our product portfolio within plastics and the fact that we are the leading manufacturer of synthetic rubber in the world, more than 50 percent of our turnover is generated in the automotive and tire manufacturing industry.”

Lanxess currently has an initiative it calls Green Mobility. Green Mobility relates to two major areas — lightweight construction of automobiles and green tires — which Lanxess hopes will drive the growth of the business and improve the auto industry at the same time.

“Car manufacturers are continuously focusing and forced to focus on reducing CO2 emission, reducing fuel consumption and that’s why they have to reduce the weight of the cars,” Bjøernslev says. “By using our high-performance plastics, you can reduce the weight of a car up to 30 percent. That is something that the Motor City is very interested in.”

The second area of interest for Lanxess is what it calls the green tire. The company has been supporting an initiative within the European Union, Brazil and Korea surrounding tire labeling.

“There is a requirement to label your tire as a producer based on three factors: rolling resistance, noise reduction, and wet-grip capabilities,” Bjøernslev says. “We are convinced that Americans who love to have a choice will be embarking on this tire labeling issue because so far in the U.S. you have never had the chance to decide what kind of tire you would like under your Cadillac, Ford or Chevy.

“We’re convinced this will be a topic for the U.S. industry in the future and we will support that.”

Bjøernslev hasn’t wasted any time in making decisions about where to focus the company moving forward. That decisiveness has been a result of listening to what is happening around Lanxess globally.

“First and foremost, you have to listen to your customers,” he says. “Secondly, make sure that you assess the entire value chain. You want to make sure that you reach out and listen to the customers of your customers. You want to make sure that you’re integrated in the right manner in order to cost-effectively and profit-effectively cater your products to the market.

“You have to make sure that you read the signs of your time, meaning the trends in the marketplace. You have to live in a global world. Today, it would be very risky to only focus on the U.S. or North American market.

“You have to take into consideration what the drivers are internationally, in Asia and in Europe, because although we sell a lot of products here in the U.S., we export to other parts of the world and vice versa.”

Bjøernslev says as time goes on, he plans to continue to focus on having the right set up in the company to get Lanxess to that next level of growth.

“We are cautiously optimistic as to future development,” he says. “What we have to do now is make sure we have the right organizational set up in order to cater our products to the market.

“What I found here was an excellent foundation. What we want to do is capitalize on that and make sure that we participate in the new market dynamics within the North American chemical industry and beyond … with the advancement of our products.”

How to reach: Lanxess Corp., (800) 526-9377 or www.lanxess.us

Takeaways

Get to know your employees and understand your company.

Listen to key stakeholders and the business environment.

Take your learnings and make decisions about direction.

 

The Bjøernslev File

Flemming Bjøernslev

President and CEO

Lanxess Corp.

Born: Denmark

Education: Bachelor’s degree in international management, FOM University of Applied Sciences, Essen, Germany

What was your very first job, and what did you learn from that experience?

I was a shop assistant at a green grocer. It taught me that hard work and dedication pays off.

What is the best advice you’ve ever received?

Never tell yourself that the target has been reached, because there is a big risk that you turn complacent.

You mentioned you are a car guy, what is your favorite car?

I am the proud owner of a 1969 Porsche coupe. I’m a Porsche guy but old Porsches.

Who is someone in business that you look up to?

I’m a great admirer of a man named Ferdinand Piëch. He is the head of the supervisory board of Volkswagen. Volkswagen is currently No. 3 in the world and the target is to be the No. 1 car producer. First with Porsche, then Audi, then Volkswagen, Piëch has continuously been building Volkswagen to be one of the leading car producers in the world and that’s been done with innovation and technology. I find it fascinating the consistency he has had in achieving the position Volkswagen is in today.

What has been your favorite country you have spent time in?

I have a bunch of favorite countries, but my takeaway lesson from traveling the world has been that the key is the language. I speak four languages fluently: Danish, German, English and Spanish. I speak half Slovak because my fiancé is from Slovakia. I have a couple of favorite cities: Vienna, Austria; Buenos Aires, Argentina; and I’m increasingly starting to like Pittsburgh, because it’s not a major city like New York, but it’s also not a village. It’s the right size and it has a lot of culture.

Published in Pittsburgh
Friday, 31 May 2013 20:00

The mindful organization

Mindfulness, a concept originally characterized by Ellen Langer in 1989 as a state of alertness that is manifested in active information processing, includes creating new categories rather than relying on categories present in our memory; welcoming new information by being open and attending to changed signals, welcoming more than one view and being aware of multiple interpretations, and avoiding being on auto-pilot.

In 1999, Karl Weick and Kathleen Sutcliffe extended the concept of individual mindfulness to the collective dimension, describing it as the widespread adoption and diffusion of mindfulness by the organization’s members. Mindfulness helps organizations to notice more issues, process them with care, and detect and respond to early signs of trouble. Weick and Sutcliffe describe five cognitive processes that constitute organizational mindfulness: Preoccupation with failure, reluctance to simplify interpretations, sensitivity to operations, commitment to resilience, and deference to expertise. These, they contend, are prevalent among members of high reliability organizations.

So how does organizational mindfulness apply to the management of organizations?

Let us look at these five processes one by one.

Preoccupation with failures

Mindful organizations demonstrate an ability to learn from failures and breakdowns. The organization learns from what did not work and identifies gaps to ensure transformational success. These firms see failures as an opportunity to learn and to try again instead of getting discouraged and throwing in the towel.

In no way does this mean that you ought to get totally absorbed with failures. Mindful leaders spend equal time celebrating successes and analyzing failures to move the organization forward.

Reluctance to simplify interpretations

High performance organizations refuse to simplify interpretations, especially when facing intense competition, increased complexity and large amounts of data.

Business professionals are exposed to an enormous amount of internal data and market information. They face variations in the degree of analyzability of market information, in the degree of information commensurability, and in the equivocality of information coming out of multiple sources in the organization.

The inherent levels of information uncertainty and ambiguity require they focus on complex problems without reducing and oversimplifying them.

Sensitivity to operations

Leaders of mindful organizations purposefully invest in developing capabilities of their front line personnel. They pay attention to all organizational actors whether in leadership or in the “trenches.”

Mindful leaders listen actively to the rumor mill and embrace feedback coming from organizational skeptics. Being sensitive to operations also entails adjusting strategic programs by taking into account the knowledge of people who actually do the work.

Commitment to resilience

Resilience is one of the dimensions of the organizational confidence construct.

Leaders of mindful organizations commit to the success of all organizational programs. They purposefully develop shared beliefs, courage and resilience when implementing business strategies so that the organization keeps going when facing adversity.

The role of organizational champions and change agents is equally important to build collective confidence in teams.

Deference to experts

Decision-makers in business units should rely on the expertise of specialized centers of excellence to optimize business decisions and firm performance. Business leaders should avoid improvising and ought to defer tough decisions or complex problems to internal experts.

The five characteristics of high reliability organizations proposed by Weick and Sutcliffe can be applied and operationalized by any company in search of business excellence. Organizational mindfulness and mindful champions can play a critical role in the success of organizations. I call this mindful business management. I encourage you to read more about this emerging theory on organizational mindfulness.

 

Stephan Liozu (www.stephanliozu.com) is the founder of Value Innoruption Advisors and specializes in disruptive approaches in innovation, pricing and value management. He earned a Ph.D. in management at Case Western Reserve University and can be reached at sliozu@case.edu.

Published in Columnist
Friday, 31 May 2013 20:00

The secret to business success

In my management consulting practice, I am frequently asked, “What is the key to business success?” I invariably tell clients that the answer is simple: employee buy-in.

If most of a business’s employees believe in the company, its leadership and its prospects, success is significantly easier to attain. Examine companies that have outperformed the competition in their industries, such as Southwest, Starbucks, Facebook and Google, and you will discover that they invest significant resources to generate employee buy-in and have subsequently benefitted handsomely from it.

Competitors frequently are able to replicate the business practices of these market leaders but are seldom able to achieve the same level of employee buy-in — the key to generating a powerful, intangible competitive advantage for businesses.

Employees who buy in are invariably passionate, energized, committed, dedicated and creative. With this frame of mind, they are far more valuable than those working to earn a paycheck by going through the motions of the job, let alone going the extra mile. They may even go out of their way to frustrate or sabotage the company’s success.

Getting the necessary conditions

While the concept of buy-in is relatively simple, achieving it takes a serious commitment. Buy-in is neither difficult nor costly to achieve, but several conditions must exist to generate that highly valuable disposition.

•           Employees need to understand the vision and direction of the business and recognize that they are realistic, attainable and motivating. To accomplish this, a business must have a comprehensive, up-to-date vision and strategic plan that is shared with employees in a manner they can understand and embrace.

SS&G Parkland’s research indicates that fewer than 10 percent of businesses have a comprehensive and up-to-date vision and strategic plan. And for those that do, only a tiny fraction of them share the plans with a significant number of employees. Employees who are not presented with a vision and plan that clearly communicate the path to success cannot be expected to buy-in.

•           Employee involvement and empowerment are key catalysts to buy-in. Those who are invited in and trusted to participate in determining the company’s direction invariably feel good about their role and their employer. Involvement and empowerment unleash pride, ownership, energy, and creativity — the key ingredients for buy-in.

•           While fair, respectful, consistent and honest interactions with employees will not by themselves generate buy-in, the absence of these qualities can critically undermine buy-in. Employees who are not treated well are not likely to feel good about the organization or its future.

Change in management style is needed

None of the conditions described above are particularly difficult to implement or likely to require any significant financial investment. They will, however, require a change in the management style and approach, including the following:

•           Management accepts the responsibility for developing a comprehensive vision and strategic plan, which is likely to lead the company to success. This is management’s most important role in a business. Instead, unfortunately, many managers are more comfortable focusing on day-to-day issues, challenges and opportunities.

•           Sharing plans and information with employees. Many managers prefer to keep employees somewhat in the dark, expecting them to keep their heads down and just do their jobs.

•           Changing from command and control management to coaches and cheerleaders.

These changes might be uncomfortable for some leaders at first. For them, successfully embracing and accomplishing these changes may take training and coaching. Conversely, employees invariably love the changes and adapt easily. Employees may be skeptical about managements’ commitment to the changes — requiring management to demonstrate its commitment to this new approach.

Without buy-in, most employees function as a pair of hands. With buy-in, employees throw in their heads, hearts and souls into creating a very compelling and powerful force. Buy-in is the simple trade secret that offers any company a huge competitive advantage.

Larry Goddard is managing director of SS&G Parkland Consulting LLC, the management consulting affiliate of SS&G Inc., the 41st largest accounting firm in the U.S. Goddard has been providing management services for more than 25 years. Contact him at www.ssandg.com.

Published in Columnist
Friday, 31 May 2013 20:00

Are your messages getting lost?

Remember playing telephone as a kid? You would sit in a circle with friends and whisper a message into the ear of the child next to you. By the end, when the last kid would announce the message out loud, everyone would break into laughter: It never bore any resemblance to the original message.

Is that still happening to you? Are your messages getting lost in a modern-day game of telephone?

I see it in companies all the time. The CEO knows the message — in this case the business’ vision and strategies — but it gets terribly distorted as it gets passed along and it becomes no laughing matter.

There are reasons why messages get lost.

No. 1, managers often don’t understand or even hear the message or its importance. Its relevance to their work hasn’t been explained to them.

No. 2, the noise of stress can deafen the message. Today, employees are running at breakneck speed in order to stay competitive. The priority is on responding to immediate needs and putting out fires. Under stress, many managers can’t hear the message or can’t prioritize communicating it.

No. 3, competitive work environments mean personal job security comes first and the company’s long-term success second. We make decisions that are in our best interests, not always thinking whether they’re aligned with the company’s goals. When that happens, the message gets sidelined in favor of short-term gain.

In order for the message to stay intact, it needs to be communicated loudly and clearly over and over again, and everyone in the circle needs to be responsible for passing it on accurately. Don’t wait until the end to realize the message has been mangled.

Articulate the vision and strategy.

The importance of this can’t be overstated. The vision and strategies — your message — should be presented to people over and over again, not just in words but visually.

Visuals resonate with people and make the message stick. Develop a visual representation of the company’s vision and display it prominently throughout the organization.

Generate confidence and commitment.

In order for people to pass the message on accurately, they need to know, “What does this mean for me?” and “Why should I care?”

Today’s competitive work environments are making people incredibly anxious and concerned about the future. People want reassurance about their own futures and their company’s future. Perhaps more than ever before, they need inspiring visions for the future that they can take confidence in.

Give them a vision they can support and make it clear that the company needs them on board in order to succeed. Let them know how they will benefit if the company reaches its goals. Once they believe in the company’s future and their role in it, they’ll be committed to the message.

Accept accountability.

Leaders must accept personal accountability for communicating clearly. Each leader must commit to communicating in ways that align with the original message. No matter how tense things get, the message can’t get dropped or distorted at will by one leader. If a leader or leaders stray, the situation must be addressed immediately. Otherwise, the strategy has no teeth and will not be trusted.

Invest in management.

Commend leaders who communicate well and work closely with those who need more help. Remember that this is a process. In order for it to work, people will need mentoring and coaching.

Break it down.

Our high-pressure work environments mean that people will want to throw out long-term strategies when the going gets tough. In order to prevent that, work with managers to create daily, weekly and monthly priorities that meet short and long-term goals.

 

Donna Rae Smith is a guest blogger and columnist for Smart Business. She is the founder and CEO of Bright Side Inc., a transformational change catalyst company that has partnered with more than 250 of the world’s most influential companies. For more information, visit www.bright-side.com or contact Donna Rae Smith at donnarae@bright-side.com.

Published in Columnist

Staffed with beautiful servers in sexy plaid kilts and matching plaid tops, Tilted Kilt Pub & Eatery has its roots deep in the tradition of Scottish, Irish and English pubs. Originally coming to life in Las Vegas, the contemporary, Celtic-themed sports pub is headquartered in Tempe, Ariz., and has been doubling in size for the past couple of years. Today, it has 3,500 employees, revenue of $240 million and locations across the country.

While many patrons may come to Tilted Kilt to view the attractive servers, President Ron Lynch wants to make sure the brand is seen for much more than that. To help him get a better view inside the restaurant chain’s stores and get a firsthand account of how its employees were performing, Lynch went undercover on CBS-TV’s “Undercover Boss” in 2012.

“Going undercover made me realize that we really employ a lot of young people,” Lynch says. “Human resources are always a challenge and more so in our brand because we do hire so many young people. For some of them, it’s their first job. Some haven’t even been employed as servers or kitchen help or bartenders for that long of a period of time.”

One of the biggest lessons Lynch learned from his time under wraps was that Tilted Kilt and some of its younger staff could greatly benefit from a mentoring program. In addition, he discovered that there were a number of superstar employees going unnoticed.

Here is how Lynch took his undercover findings and translated them to make Tilted Kilt a better place for patrons and employees alike.

Educate through mentoring

Many young people looking for some early work experience will often find jobs at an area restaurant. Tilted Kilt is no exception, and that led Lynch to launch a mentoring program to improve the Tilted Kilt experience.

“We assumed at the store level that the management/young-employee relationship was enough, but they talk more along the lines of taking care of the guests, providing good product, being upbeat and entertaining people,” Lynch says. “A mentor relationship can be more of a personal thing for them.”

The idea for a mentoring program surfaced because of the actions of one Tilted Kilt server in particular who appeared on “Undercover Boss”with Lynch. She was seen telling off-color jokes and using language that wasn’t acceptable.

“That doesn’t represent our brand,” Lynch says. “A mentoring program for those young people allows a more experienced server to talk to them and give advice. Coaching in these areas is for their own good.

“This isn’t just our brand. It could apply for any brand that hires young people. Sometimes they need a little bit of coaching when those young people are in the adult world.”

The mentoring program allows Tilted Kilt’s young employees, like the one seen on the show, to speak with more experienced members of the staff.

“The mentor program is set up so that they have monthly meetings and talk for a period of time,” he says. “We want to enroll all the 18-, 19- and 20-year-olds before they are legally adults at 21. That’s where we have started.”

What Lynch has found so far in the company’s mentoring efforts is that you have to be persistent at getting involvement in the program.

“No. 1 is you have to persevere at it because your young people are going to be resistant to it,” he says. “They don’t think they need it. That’s the hardest part. We may need to rename the program something like Big Sister, Big Brother program — anything other than the mentoring program.

“At that younger age, they think they know everything, and so they think they don’t need it, and that’s the difficulty we are having with it. We need to put a different face on it and call it something different but have it accomplish the same thing.”

Lynch and his team are putting their heads together because so far the mentors and mentees are getting together, but they feel obligated to meet instead of wanting to meet with a mentor. That’s a problem Lynch is looking to fix.

“It takes time, but it’s also the approach that our servers take,” he says. “Rather than them coming up to that person and saying, ‘Hi, I’m your mentor, and we need to meet,’ and they go, ‘Why?’ Maybe there is a better approach.”

Seek out superstars

Much like with the mentoring program, Lynch found out that Tilted Kilt had some real hidden gems inside its restaurants during his experience undercover, which made him realize the company needed a better way to find these employees and recognize them.

“Another thing I noticed was that we have some fabulous people in the field that are going unnoticed,” Lynch says. “I would have never actually seen some of these people without going undercover. So our operations people and I are going to spend more time, particularly in the kitchen.”

Tilted Kilt needed a way to find those superstars within its system and make sure they prosper.

“I’ve challenged our operations people to go beyond that and get into the kitchens,” Lynch says. “Observe and talk to the kitchen people, maybe work on the line a little and assist them where you can. Then a great way to meet the servers is to offer to help run the food with them. That will help get feedback as to who those superstars are.”

To find those employees who are high achievers but might be going unnoticed, you have to challenge your staff to dig in deep.

“I know it’s uncomfortable and you’re in a restaurant that you don’t work in every day, but you have to pick out those roles that you can function in and dig in. You have to help them run and help them prep food and meet those people who are actually doing the job for us rather than just the owners and managers,” he says.

Finding great talent already in your business is one thing. Having the ability to hire those high achievers from the beginning is another. Lynch is also devoting time and resources to improving the hiring process.

Tilted Kilt uses a hiring process called HOST, which stands for hiring only spectacular talent. It’s a process that takes a minimum of 30 to 45 minutes to do.

“We have that potential bartender or potential server role-play with us,” Lynch says. “One of the common scenarios is I play the customer and the new person is the server. We want to know if they will communicate with us and connect. Are they a people person? Will they smile at the customer? That’s very, very key to us in the hiring process, and we spend a lot of time on it.”

You have to make sure that if you have one person in charge of a hiring process that he or she doesn’t get complacent and tired of it.

“It’s an interruption in their busy day, which is wrong, because that is the most important thing — getting the right people,” he says. “The hiring process is the No. 1 priority and the No. 1 priority that they do it right. If you have one person in charge of that hiring process, that one person will do it over and over and get really good at it and have the experience of knowing what makes the best employees.”

How to reach: Tilted Kilt Pub & Eatery, (480) 456-5458 or www.tiltedkilt.com

Published in National

Staying relevant. It’s why companies close old divisions and start new ones, why they introduce new products, make acquisitions, diversify their portfolios and invest in R&D. And for IT companies like Groupware Technology Inc., it’s the reason to complete one transformation, only to pause, and do it all over again.

The need to change was something that IT industry veterans — owners Mike Thompson, Scott Sutter and Anthony Miley — understood well when they acquired Groupware, an IT solutions provider that was on the verge of going belly-up in 2005. They recognized from day one that the company’s survival was dependent upon Groupware’s ability to transition outside its roots of

“systems and storage” and make a name in for itself in IT’s fastest-growing segments: big data, cloud computing, virtualization and data security. It’s a process that’s taken involved two restructurings in seven years.

“It’s a brand-new organization from the company that we acquired,” says Thompson, the company’s president and CEO. “We took a company that was doing at the time of the acquisition $1.7 million, and we turned it into almost $150 million with our company. We injected life into the organization by creating relevancy within the marketplace … and within the customer base.”

Here’s how Thompson and his co-owners have taken Groupware from struggling IT reseller into a leading systems integrator.

Look for an opening

Groupware’s broad customer base includes SMBs all the way to Fortune 500 companies. This means the company’s IT solutions must meet a wide range of technology needs. Delivering solutions that are on the leading edge of today’s systems and storage technology is the only way to stay relevant for customers.

“At the rate that technology is changing — it’s pretty amazing the acceleration that it’s going through — we need to stay in the forefront in regard to what technology is out there,” Thompson says. “It’s having business conversations with our customers to understand what pain points they’re trying to solve for and where they’re trying to take their business.”

Nobody knows the needs of the market better than your customer base. So one of Thompson’s first steps as CEO was to ask customers, “What’s going on in the marketplace?” and “Where do you want to take your business?” to see where Groupware should be investing.

“Understanding what’s going on around cloud computing, big data, next generation data centers and having the expertise to be able to deep dive into those types of opportunities and conversations with customers has allowed us to remain in the forefront,” Thompson says.

“It’s having conversations with our end users in regard to what business issues they are trying to solve and then understanding how we can help them solve those issues, and not just for today.”

What Thompson and his partners realized quickly is that businesses buying IT products also wanted in-depth knowledge and advice from their providers. They began working on a strategy to transform Groupware into a services-led business, which could provide both products and support for its customer’s technical capabilities.

As it turned out, the challenges in the down economy — more companies began seeking IT workarounds to help them manage with more limited resources —gave the company an “in” to present its new solutions and services to the marketplace.

“Customers looked to us to offset some of the reductions that they had in place because business has to go on,” Thompson says. “You still have to solve these business issues. You’ve just got to find new ways to address the business models out there.”

While competitors scaled back, Groupware doubled down on IT investments, including its service segment, which Thompson and his partners believed would propel demand moving forward. The company also invested heavily investments in its labs and engineering capabilities — especially engineering talent.

“Where there is change and uncertainty, there is opportunity,” Thompson says.

“As we went through it, we saw that people were going to pull back. Our opportunity was to go invest heavily to have resources available to [businesses] and to create value out in the marketplace that our customers could leverage from us to continue to be successful in their operation.”

Start tough conversations

By the time the recession began bottoming out in 2010, Groupware had nearly doubled its business, a sign that new investments were paying off. Still, the business transformation also forced Thompson and his executive team to restructure certain areas of the company to make room for those investments.

It was important to engage people in “adult conversations” about why the changes were happening and what they meant.

“I think too often we let niceness get in the way of the truth. You need to have those conversations and not delay the hard conversations, acting decisively based on that and moving forward. I’ve been in situations where the executive team has been slow to make changes and it became irrelevant really quickly by not acting and not executing. It’s critical to have those conversations and then act on them appropriately.”

Groupware has now gone through two restructurings since 2005, a transformation process that’s involved rearranging certain departments, eliminating remote offices and consolidating operations. These strategic moves have helped drive the company’s investment in “rack and roll” solutions — complete technology solutions designed to be rolled into the data center and quickly put into production, generating higher returns for Groupware.

For Thompson, the ability to have honest conversations with team members has helped him keep the company accountable to progress, but also to earn employee respect. People prefer to do business with people that they like, but they’ll also follow a leader who they respect, he says.

“We need to have those hard conversations and get everybody on board with the investments that we want to make as an organization,” Thompson says.

“You can move too quickly, but if you set the goals and hold accountability level, you can make minor changes to that if you need to, or you can pull back.”

That said, building a dialogue with employees is also important in helping you monitor your investments. Strong internal communication gives you a continuous feedback loop to know where your investments stand and what kind of returns they are generating so that you can know when to pull back.

“It goes back to where you place your bets, making bets and then understanding the return, setting expectations associated with those bets and managing toward that,” Thompson says. “If you don’t see the return or you don’t see the return coming, you need to be able to take those resources back and double down where you do see return on those investments coming from or where you believe you can get a greater return.”

Share in excellence

Today, Thompson continues to invest heavily in the company’s core competencies — networking, security and storage — as well as its services practice, its fastest-growing division. Smart investments combined with open and honest communication are two building blocks in a foundation that helps Groupware stay relevant with customers, and the marketplace.

The third is collective ambition, or a shared commitment by employees to the company’s success.

“I’m a firm believer in building winning teams, having the right people in the right positions at the right time,” Thompson says. “Then you’ve got to empower them to go out and execute.

One way Thompson drives collective ambition at Groupware is by creating an environment where employees want to come to work.

“I’ve always felt that it’s our job from a leadership perspective to put our employees in a position to be successful,” Thompson says. “When they drive home that night, we need to give them a reason to come back in the office the next morning.”

What makes a great work environment? At Groupware, it comes down to living the company’s three core values every day.

“The great thing about this transition is that we’ve remained true to our core values of customer service, excellence and fun,” Thompson says. “My belief is that you keep those core values intact and you create an environment where employees can be successful and understand the consistency of the model that you’re bringing to the marketplace.”

An example is the fact that Groupware invites every employee in the company to its national kickoff — an event that many businesses limit to their sales teams.

“It’s customer service,” he says. “It’s the pursuit of excellence and it’s having fun. Those three complement each other.”

Getting employees together for the kickoff is about showcasing the company’s values and vision; but it’s also about “getting everybody to fill part of the success of the company,” Thompson says.

Driving this culture is also why Groupware expanded its focus on collective ambition in 2010, when it rolled out a corporate program around the concept. The goal of the program is to help employees understand their role in serving the purpose of Groupware and better explain to employees how all departments participate and work in harmony to help the company succeed.

“Once you have buy-in and you have collective ambition by multiple individuals in the organization, you can propel the business in the direction that you want to take it,” Thompson says.

How to reach: Groupware Technology Inc., (408) 540-0090 or www.groupwaretechnology.com

The Thompson File

Mike Thompson

President and CEO

Groupware Technology Inc.

Born: Mountain View, Calif.

Education: USC undergrad; MBA Regis University

Leadership philosophy: I don’t shy away from the fear of failure. That actually makes me work harder, and I take those challenges and adversity head-on. I’m a classic example of ‘productive paranoia.’ I’m always looking over my shoulder, always working hard and always trying to better myself to make sure that I can keep moving in the right direction.

What would you do if you weren’t doing your current job? 

In some capacity, creating an environment and opportunities for others to grow. Leadership and mentoring have always been important to me.

What is one part of your daily routine that you wouldn’t change?

When I’m not traveling, taking my kids to school in the morning. Discussing ESPN Radio with my son while my daughter tries to sing over the conversation and dance free of her car seat always starts my day off in perspective.

If you could have dinner with one person you’ve never met, who would it be? 

Cassius Clay. I’m a huge boxing fan. The man who became Mohammed Ali was a personal branding genius and his endless confidence and brashness are endlessly fascinating to me. 

What do you do to regroup on a tough day? 

If I can, go do something with my son, shoot hoops, play catch and so on. It gives me a half hour or so away from my phone. Practice, form and fundamentals messages, repeated to him over and over, are great reminders for me as well.

What do you do for fun?

Get out on the water: wake surfing, boating, being out on the water with friends and family. 

Published in Northern California
Friday, 31 May 2013 20:00

The mothers of invention

I’ve always enjoyed working for myself. In fourth grade, I mowed lawns. In high school, I expanded into window washing. Later on, I started a janitorial company and an outdoor advertising company. Eventually, I raised money from venture capitalists and started a business to sell marketing supplies online. Supposedly, all of that was a single kind of activity called “being an entrepreneur.”

“Entrepreneur” however, is a stretched out word. It may have been a perfectly good word at one time, but it isn’t very useful any more. A fellow who owns a McDonald’s restaurant is called an entrepreneur, and so is Mark Zuckerberg who started Facebook. The word has come to mean something like a “businessperson” who takes “risks” to make money.

I am not sure how much risk is involved in opening a McDonald’s or dropping out of Harvard — maybe because I’ve never done either. But launching Facebook seems fundamentally different than opening the 14,000th McDonald’s. We need more nuanced definitions to describe these varied activities so that we can see the differences.

Originality, not risk

There is certainly risk in starting any new business, just as there is risk in investing in any business, no matter how large or well-established. But the essence of entrepreneurship in its most exhilarating and important sense has to do with originality, not risk. There is greater value in the discovery of new things than in the refinement of the known. That is why cooks and bakers proudly guard their newest recipes, while the best of the tried and true are free online.

Oftentimes, when we’re speaking admiringly of successful entrepreneurs, what we’re really talking about are what I’d call imagineurs (thanks, Walt Disney, for the inspiration).Imagineurs bring to the table not just a desire to build, but a desire to create — whether their creation is a new gadget, a new idea or a new business model.

This act of invention is what differentiates starting up Facebook from starting up a new McDonald’s. Both require the riskiness of basic entrepreneurship, but only one requires doing something no one else has done before.

New life into an old field

To see the potentially tremendous value in thinking up something completely new, consider a field that’s incredibly old: music. People have always wanted to be able to listen to the music of their choice at the time and in the place of their choosing.

Over the past 150 years, our ability to do so has changed and improved dramatically. Each great leap forward depended on imagineurs, be it Thomas Edison and his phonograph, or Nobutoshi Kihara and his Walkman, or Steve Jobs and his iPod and iTunes store. Each imagineur’s efforts enhanced our ability to listen to the music we love.

Imagineurs don’t have to be technological wizards or tinkerers in the lab. Walter L. Jacobs started America’s first rental car business with 12 Model T Fords; today that company is called Hertz.

Reed Hastings upended the video rental business by sending discs through the mail on a monthly subscription basis and started Netflix.

Imagineurs are architects, designers, creators and seers of the unseen. Through curiosity, ingenuity and discovery they contribute a founding insight without which, neither they nor any other business builder can proceed successfully for very long. They find a way to give customers what they’ve always wanted, but better, faster or cheaper than before.

Just as every great inventor had a mother, every great invention began with an imagineur.

 

Jerry McLaughlin is CEO of Branders.com, the world’s largest and lowest-priced online promotional products company. Reach him at JerryMcLaughlin@branders.com.

Published in Columnist
Friday, 31 May 2013 20:00

Movers & Shakers June 2013

Perspectus Architecture, a planning and architectural design firm based at Shaker Square has expanded the firm’s leadership team.

The firm announced that Vladimir Novakovic, Sal Rini and James Wallis have been promoted to principals of the architectural design firm. Novakovic, Rini and Wallis are experienced in providing master planning, design and project management for health care, higher education, government, senior living and hospitality clients. With this promotion, they will become more active in business decisions guiding the direction of the company.

 

 

Magnus International Group has announced several promotions and additions to its team.

Tom Burlinski is now purchasing manager for Hardy Industrial Technologies, a division of Magnus. He has more than 25 years of notable experience in purchasing, quality assurance, customer service, safety, transportation and

production management.

 

Tom Szucs has been promoted to plant engineer for Hardy Animal Nutrition, a division of Magnus. As plant engineer, Szucs will employ his skills in cost-savings analysis, system optimization, project management and R&D to improve HAN’s chemical engineering processes.

 

Mark Pavlus has joined Magnus as senior plant engineer with more than 16 years of engineering experience in the manufacturing sector. He is focused on behavioral safety and operational improvements for Hardy Industrial Technologies.

 

Gordon Taylor returns to Magnus as production manager for Hardy Industrial Technologies to oversee daily manufacturing activities for the plant. He has more than 10 years of experience as a plant and manufacturing manager, operations supervisor and production team leader.

 

 

Skylight Financial Group, a leading comprehensive financial planning firm in Cleveland, Ohio, announced the creation of a new division, the Business Private Client Group (BPCG).

The new focus allows Skylight to address the increasing need to provide specialized planning for business owners looking to exit or transition control of their businesses. The Business Private Client Group works with privately held and family-owned businesses to develop a comprehensive approach to designing an exit strategy.

 

 

MesoCoat, an Abakan Inc. subsidiary located in Euclid, took the final step to the market introduction of its award-winning CermaClad corrosion and wear-resistant cladding process when it opened its first commercial facility on April 26.

The new plant is capable of producing $70 million in clad pipe annually, and is estimated to be one of the largest clad pipe manufacturing plants in the world in production capacity. The plant will help stimulate the local economy by providing highly-skilled manufacturing jobs.

 

 

Turner Construction Co., the builder of The Global Center for Health Innovation and Cleveland Convention Center, which was formerly known as Cleveland Medical Mart and Convention Center is pleased to announce that it expects to complete the project three months ahead of schedule.

The $465 million Cuyahoga County project began on Jan. 3, 2011 and is expected to be completed on June 1, 2013. The project is being developed, managed, and marketed by Merchandise Mart Properties Inc. GCHI and CCC will consist of a 235,000 square foot medical mart in downtown Cleveland and an adjoining convention center with 230,000 square feet of Class A exhibit space. The facility also includes more than 90,000 square feet dedicated to meeting rooms and a grand ballroom overlooking Lake Erie.

Published in Cleveland