Is Your Franchise Flying Blind?

EOS Issues

How to Recognize and Address Your Core Business Issues.

Over the past several months we have highlighted the various components within the Entrepreneurial Operating System (EOS).

  1. Vision
  2. People
  3. Issues
  4. Data
  5. Process
  6. Traction

While each of the 6 components of the EOS Model is a separate entity, they inherently interact with each other in some capacity.  Each individual component needs to be solidly identified if the EOS is going to help the company’s health and growth.

For example, while most companies think that the Issues they are having are unique, in actuality there are only about 25 different Issues that companies have faced since the beginning of time.

Issues: IDS

Let’s examine one company in the news lately that lost close to $1 billion in the market because they failed to handle an Issue properly.  The company in question is, of course, United Airlines.  My purpose is not to get into a debate of the legalities (or illegalities) of what happened, but to merely show you how important it is to go through your own IDS (Identify – Discuss – Solve) for any Issues you might have. Let’s start with what happened within United’s chain of command that broke down so horrifically into a continuing PR nightmare.

From United’s website:  “We are committed to providing a level of service to our customers that makes us a leader in the airline industry. We understand that to do this we need to have a product we are proud of and employees who like coming to work every day.

Our goal is to make every flight a positive experience for our customers. Our United Customer Commitment explains our specific service commitments so that we can continue a high level of performance and improve wherever possible. The commitment explains our policies in a clear, consistent and understandable fashion. We have detailed training programs and system enhancements to support our employees in meeting these commitments, and we measure how well we meet them.”

 

Very interesting…so what happened, what’s the Issue?  From what I’ve read in the various media posts, someone realized that they needed to get 4 crew members to Louisville for the next day.  They had a Process for this, eventually randomly selecting passengers to “volunteer” their seats. It’s still inconclusive as to if that Process called for having police “enforce” that policy.

Part of the process of identifying the key Issue here is to ask a few questions:

  1. Why a PR nightmare?
  2. What happened & What could have been done better to resole this Issue?
  3. Solution:  Analytical tools, Process modification, People

From our February e-newsletter on issues, “Only when the real root Issue is identified should you and your team begin the discussion phase.” What is the real Issue that United is facing?  I’ll suggest a few, but this list is by no means conclusive.

  1. Too much concern for the bottom line that Wall Street requires (Data component)
  2. Too little concern for their paying customers (a direct conflict with their Vision)
  3. Faulty Process
  4. Process driving People, rather than People driving Process

Hopefully, Oscar Munoz, the CEO of United is going to give more than lip service when he states his apology for ‘re-accommodating’ passengers. What happens over the next few weeks will be telling as to how seriously United takes this Issue.

What types of Issues are you facing within your company?  If you would like to have  an Issue Review Session with coach Thom Torode, click here to schedule.

Thom Torode is a NJ based Professional Executive & Business Coach and EOS Implementer. Having owned and operated over 5 different businesses he is currently the Managing Director for Sunrise Business Advisors.   Thom’s expertise includes working with those business owners who have plateaued getting them unstuck and back in growth mode. Additionally, Thom works with both franchisees and franchisors in helping them develop their leadership. Thom is also Director Consultant with BNI. When not helping business owners and their teams create the business and lives they want and need, he can be found following his kids activities.

 

Business Vision is the foundation of any business

Business Vision

Business Vision Concept

EOS is Comprised of Six Key Components:

Business Vision, People, Data, Issues, Process, and Traction. While these are all interrelated, it is important to understand each aspect individually in relation to your business.  Each of the six components of EOS defines where to focus efforts to keep you attaining your goals.  When each component is optimized your business will be unstoppable.

Now we’ll concentrate on the Vision aspect of EOS.

Think about your business’ mission statement, this is the Business Vision that helps determine the goals you set in order to be successful.  You need to have both a short-term and a long-term view of where you want to be.

Your Vision should include what makes your products and/or services stand out if you are going to convince customers to choose you every time.  It is essential to know your target market and identify your competition so you can effectively tailor your marketing efforts.

Are your employees aware of your Vision?

This is crucial to your success.  It’s never too late to formally communicate your Vision of the business with your team.  Write down your mission statement and discuss it in detail to be sure everyone understands.  Your team needs (and wants) to be included in the Vision. Working together to achieve common goals will only happen if everyone is informed.

Are you achieving the goals you set when you began your business?

In order to keep on your Business Vision on track, you need to honestly critique and evaluate quarterly.  This schedule gives you enough time to identify issues and adjust your process accordingly.  It will also keep your team in the loopBusiness Vision and focused on the direction of your business.

As your business grows and changes, it is important to keep your Business Vision in mind when making decisions.  Remember that your Vision is the first building block in your Entrepreneurial Operating System (EOS) and is crucial to the success of you and your team.

 

Thom Torode is a NJ based Professional Executive & Business Coach. He has owned over 5 different businesses and is currently the Managing Director for Sunrise Business Advisors. Thom’s expertise includes working with those business owners who have plateaued getting them unstuck and back in growth mode. Additionally, Thom works with both franchisees and franchisors in helping them develop their leadership. Thom is also Director Consultant with BNI. When not helping business owners and their teams create the business and lives they want and need, he can be found following his kids activities.

Bring Your Zombie Business to Life

Has Your Business Entered Zombie Land?

There are a number of movies and television shows today that deal with the issues of zombies, or the undead. While this is, of course, fantasy,Businessman manipulation there are unfortunately a large number of companies that operate daily in a zombie-like state.

Understanding the Situation: How did you become a Zombie Business?

These businesses are like the undead in that they continue to make sales and pay their bills, but they aren’t growing and barely get by each payday. Other signs of a walking dead operation include:

  • A lack of any effective marketing
  • Lack of growth goals
  • Few, if any, new customers
  • An outdated or broken website
  • Ignoring advice
  • A lack of adequate financials and accounting systems
  • Low employee morale and high turnover

The reality for many of these firms is that they will eventually run out of even the few customers they have and shut their doors. One of the saddest scenes you can see it to walk up to a formally vibrant business and find it closed, a sign on the door that it has closed and is no longer in operation.

Finding the Cure

If your business seems to have hit a wall, it’s time to take a hard look at the reasons you can’t seem to grow and are losing ground in your market. On the other hand, it is often difficult for the business owner to take that hard look in the mirror and understand how they got where they are. It is even difficult for many to recognize the seriousness of their situation.

Whether new competition has entered the market, the local demographics have changed, or any of a number of other factors arises to negatively impact your business, it often takes dramatic action to change your direction. Unfortunately, if you are still able to make even a moderate income, it is easy to just continue in that zombie mode, waiting until it is too late to make necessary changes.

When you find yourself in such a situation, it is often much wiser to take one of two steps. You might liquidate the business and Everything Must Go Boxes Overstock Inventory Store Closing Salespend your time at another job where you will make more money without the challenges and risks of continuing to run a dying business. On the other hand, you can wake up to the situation and decide to tackle the issue head on.

Many people find it extremely helpful to bring in fresh eyes and attitudes to help in a turnaround, providing an objective assessment of a business’s condition. For many, hiring a business coach is the first step to a new path of growth and profitability. When you take the time to work with someone who is committed to your survival and success, you receive the benefit of extensive knowledge and insights.Growth - Business Concept

If you feel your current situation is something like the plot of a late-nite show, wake up and turn to a coach who can help you bring new vitality and a bright future to your operations.Thom Torode is a NJ based Professional Executive & Business Coach. He has owned over 5 different businesses and is currently the Managing Director for Sunrise Business Advisors. Thom’s expertise includes working with those business owners who have plateaued getting them unstuck and back in growth mode. Additionally, Thom works with both franchisees and franchisors in helping them develop their leadership. Thom is also Director Consultant with BNI. When not helping business owners and their teams create the business and lives they want and need, he can be found following his kids activities.Coaching!
In addition to being a Certified Business & Executive Coach, Thom is also a Certified Franchise Business & Leadership Coach, as well as Certified Guerrilla Marketing Coach and Trainer. Our philosophy is to provide coaching, mentoring, and advisory services to help business owners achieve the businesses, the teams and the lives that they’ve always dreamed of having. We accomplish this through a tried and proven process of learning and understanding your needs and we’ve always achieved high marks with our valued clients.

Going Lean

July Business Tip: Going Lean

A lean program actively manages operational efficiency, which causes a chain reaction of business benefits. Efficiency promotes safety, saves time, controls costs, and ensures quality. Quality translates into high customer satisfaction. Customer satisfaction is directly connected to revenues. Safety is implicit in turnover cost management. And, of course, revenues and cost control are the components of profit margin. So, the operational and financial benefits of implementing lean practices throughout all business units are pervasive, including in administrative offices, sales, forecasting, and others in which lean policies are too often not recognized as applicable. A lean policy extends far beyond dictating periodic clean-outs. It’s a way of doing business—every day. There are multiple excellent models for lean operations. ISO provides guidelines. Universities teach “5S” structures in business courses (sort, systematize, shine, standardize, and sustain). The various versions of lean programs have key principles in common.

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Success by Going Lean

A) Organization

Whether it’s called systematizing or just straightening up, getting organized cannot be overestimated. It really is the first fundamental for a quality operation. Some talented business managers imagine themselves as intellectually exempt from need to operate in an organized environment. Such attitudes fail to inspire confidence of customers, guests, inspectors, supervisors, and subordinates in the professionalism of the organization and have a generally corrosive effect on a positive business atmosphere. Further, until one has functioned in a well-ordered system, he/she cannot meaningfully predict how much improved his/her personal performance would be over time.

B) Controls

Remove obstacles that inhibit the smoothest flow of movement as employees conduct processes, whether in manufacturing production or office processes. Rearrange machinery and furniture that cause unnecessary steps. Archive unused paper files. Eliminate or reorganize electronic files that cause employees to search drives excessively. Implement inventory control methods so that new stock is purchased only when the supply level of a particular item drops to a specified level. Revise workflow processes to cut unnecessary peripheral distractions or tasks. Arrange schedules so that work of like-types or along the same routes is performed by the same employee, where practical. Reducing minutes and seconds wasted by all employees daily adds up to a staggering amount of time savings that can be used to increase productivity.

C) Maintenance

Establish self-monitoring systems. Hold all employees accountable for maintaining their piece of the lean program. Support this policy with routine assessments by management. Inspections may seem extreme to employees who are unfamiliar with lean systems. However, when a lean program is structured under a simple ABC structure, as above, most employees can be successfully helped to understand the necessity of managing operational efficiency and will grow to appreciate the significance of the professional benefits of working in a lean environment.

Think about how these processes can make an impact on your organization going lean.  When you ready to learn how to implement these strategies in your business contact us for your Business Assessment Review.

Thom Torode is a NJ based Executive & Business Coach.

He has owned over 5 different businesses and is currently the Managing Director for Sunrise Business Advisors. Thom’s expertise includes working with those business owners who have getting them unstuck and back in growth mode. Additionally Thom works with both franchisees and franchisors in helping them develop their leadership. Thom is also Director Consultant with BNI. When not helping business owners and their teams create the business and lives they want and need, he can be found following his kids activities.

Celebrating Small Business Week

national-small-business-weekWelcome to National Small Business Week May 12-16.

SBW was created in 1963 in an effort to honor and show appreciation to small business owners throughout the United States. The first National Small Business Week began when John F. Kennedy signed a proclamation, which ushered in a tradition that still stands to this day. Every year since Kennedy’s 1963 signature, each U.S. president has signed a proclamation to continue observance of the holiday.

Small-business-week-final-logoSmall Business Week provides the government and citizens an opportunity to thank small business owners for their contributions to the United States economy.

It’s estimated that 27.2 million small businesses operating within the U.S. are responsible for 60-80% of all new jobs created each year. Because small businesses, and owners, are so important to stimulating the economy as well as job growth, this special week and rewards system honors the contributions these businesses make to society.

During Small Business Week top entrepreneurs are awarded with a variety of honors by the U.S. Small Business Administration. Awards are not only given to entrepreneurs, but also companies and institutions which help make running a small business possible. This includes awards such as Lender of the Year, honoring financial institutions which offer small business loans. Other awards honor contractors, business development centers, Female business owner groups and more.

The ability for anyone to start and run a small business allows residents of the U.S. to live the “American Dream” where anything is possible with a good work ethic. To 971374_10151612647979847_1306073853_ncontinue supporting the creation of small businesses, it’s important we continue to provide support and assistance to existing and potential small business owners. These small business owners rely heavily on loans from financial institutions as well as the assistance of various business groups. Small business centered groups help to educate individuals regarding the pitfalls of business ownership, and help ensure they become successful.

As a website and business which supports small business owners, and the growth of their business, we are interested in hearing your perspective. Please share with us what, if any, additional support mechanisms the government and/or financial institutions can do to help the small business owner, Can you think of ways we, as a nation, can assist the common individual with fulfilling their dreams of owning and running a small business?

Some ideas presented for helping small business owners in the past include:

  • Easier access to appropriate educational materials
  • Better education on the risks of starting a small business and how to avoid common pitfalls.
  • Credit leniency with loan requirements.
  • More streamlined loan approval processes.
  • Education centered around applying for, and being approved for, a loan.
  • Shop Local – Buy Local Programs

Small Business WeekaPlease include any additional ideas you have in the poll or comments section below!

We would love to hear from our audience and begin a helpful discussion about this topic. Also feel free to share how you will be celebrating Small Business Week.