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.

 

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.

The Key to Being a Great Visionary Leader

There are a variety of leadership skills out there, but visionary leaders are individuals who often receive the most success out of the endeavors.

Leadership Compass

Visionary Leader

These individuals can create and maintain a vision of a business and or organization that has not yet been created. This vision provides the owner with the will to work hard to achieve their goals, the passion to bring their vision to life, the creativity to adapt as times and technology advance, and the communication skills necessary to inspire their team and workforce to greatness.

Many people attempt to separate the creative process from the intellectual, but to be a truly great visionary leader, one must be able to think with both hemispheres of the brain. In order to effectively bring your creative ideas to life, one has to have the skills to apply this creative process to their whole organization. This individual will need the skills to bridge the creative with the intellectual while clearly articulating the value in their vision and empowering others to bring this idea to life. Having one or more of these skills allows the visionary leader to go after their creative endeavors in the most cost-efficient way.

While many tasks of the business process can be automated or delegated to other individuals, creativity cannot. These individuals are generally very charismatic and magnetic, providing them with the ability to manifest a vision, and delegate pieces of that vision to others. The goal of the visionary leader is to achieve company-wide adoption by planting the seed of an idea in the hearts and minds of others and watching the seed grow . This allows the visionary leader to hold on to the true picture without getting bogged down and losing their creative process. To do so, the visionary leader may set up an organizational structure or improve company hierarchy to ensure their vision is attainable.

Visionary leaders have a great talent for bringing out the best of people, and handling even the most challenging situations with grace and ease. This talent encourages all team members to rise up with a desire to pursue this vision and see it to fruition.

So how does one become a visionary leader? First you must begin to think like a leader. Practice visualizing and achieving goals in all areas of your life. Practice getting others excited about your vision and making them feel as though they are a part of something bigger and better.

It is also important to practice key leadership traits. Good leaders are:

Optimistic: Try to always look on the bright side of things, people should think of you as “that person who is never upset.”

Acceptance of Personal Responsibility: A good leader will not lay blame on others, complain or say “that isn’t my job” a great leader takes responsibility and performs a task to the best of their abilities.

Integrity: Having a strong since of integrity will earn the respect and admiration of others. Always tell the truth, and ensure you stick to a good sense of ethics and morals in all business dealings.

Communication Skills: Learn to enthusiastically communicate your thoughts and ideas. This shows confidence, and energy is infectious – which helps get others on board.

In the end, it does take a certain skill-set to be a visionary leader, but one does not have to be born with these skills. Keeping an open mind, and open heart and practicing good leadership skills in your daily life will naturally pave the way to becoming a visionary leader.

Sunrise Business Advisors is currently offering a limited number of Leadership Assessment Reviews, call 862-219-6890 now to schedule your review.

Thom Torode is an Executive & Business Coach based in New Jersey. He has owned multiple different types of businesses and is currently the Managing Director for Sunrise Business Advisors.  Additionally, Thom is a Director Consultant in the middle NJ region of 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.

Inspiring Greatness…Developing Success

 

Stress Management Techniques for the Small Business Owner

Owning a small business comes with lots of perks…your own hours, being your own boss, and building something meaningful to you.

However, the work of managing and running a small business is also an incredibly stressful endeavor.  While stress is understandable, it’s important for your health to reduce tension and anxiety.   Neglecting  stress management and not taking care of yourself can cause health issues, which will prevent you from performing at your optimum level.

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The first step in managing stress is identifying the triggers that cause anxiety to occur.  By eliminating or cutting back on these situations, you will feel more calm and relaxed throughout the day.  For example, does a particular task, such as accounting, bother you?  Hiring an account will leave you with more time to manage other parts of the business, and relieve  the stress associated with managing finances.

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Ensuring that you are healthy, both mentally and physically will also reduce your daily stress. It’s important to learn these stress management techniques:

  • Get a good night’s sleep each night.
  • Focus on the positive – use simple mindset shifts for success.
  • Eat healthy, avoid greasy meals such as fast food.
  • Stay hydrated by maintaining adequate water intake.
  • Meditate and practice breathing exercises throughout the day.
  • Take vitamins and nutritional supplements, such as fish oil.
  • Relieve built up tension through exercise.
  • Keep your work environment well organized and clean.
  • Take a break from the electronic world.  Avoid your computer, tablet, smart-phone and TV and go get some fresh air.

In the end, remember that while stress is a normal part of running a business, it’s important to understand where the stress comes from.  Many entrepreneurs are too hard on themselves, constantly comparing their success to the success of others.  This may stem from fear of failure.  These emotions are healthy and normal, but ultimately cause unnecessary stress and anxiety.  Take it easy on yourself, laugh, and appreciate where you are and where you are going.  You’ve worked hard on starting up a business – it’s time to congratulate yourself.  

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Thom Torode is a Morris County based Executive & Business Coach. He has owned over 5 different businesses and is also a licensed facilitator and co-principal for Elevate Your Leaders in NJ. 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.

Sunrise Business Advisors can be reached at 862-219-6890 or info@SBAnow.com

 

 

6.5 Mindset Shifts for Business Success

Mindset Shifts for Business Success

Thom Torode, MBA, CBC, CEC

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Mindset and Attitude = Success

 

When I started down my career path to helping business owners, one of my mentors gave me the book: The Little Engine That Could “I think I can, I think I can, I think I can, I think I can!”  Interesting choice as I look back, I had owned 5 different businesses was a senior manager for a fortune 500 company and had helped hundreds of people with their sales and careers by that time. In reality, he expressed later was the reminder of who I was and how I could make an impact on the mindset of others lives.  It was also a reminder to teach others what even children’s characters will attest, a winning mindset is a trait to adopt. It attracts happiness, health, fulfillment and success. But what is a mindset, really?

What is Mindset?

Consider these questions:

  • When faced with a new challenge do you react confidently?  Do you believe that with effort, practice, & time you can succeed? Or do you question your abilities, motivation and talent?
  • Do you view failure as part of the journey? Or do you avoid new challenges in order to protect yourself from potential embarrassment?
  • When you are faced with setbacks and criticism, do you rethink your strategy and persevere? Or do you give up and just cut your losses?

Your answers to these questions give insight into what type of mindset you may have.

A mindset is your established set of attitudes that are based on their assumptions. These assumptions predetermine a person’s reactions to and interpretations of any event, environment or situation.

Whether positive or negative, a person’s mindset is engrained, habitual and affects all aspects of his or her professional and personal life.

Is Your Mindset Working to Your Advantage or Holding You Back?

In her book Mindset Stanford University psychologist Carol Dweck identifies two general mindsets: fixed and growth.

Fixed Mindset
•   Talent and intelligence is static
•   It’s better to avoid challenges
•   It’s okay (even preferable) to quit before failure
•   Effort is pointless
•   Ignores useful criticism and feedback
•   Views success of others as a threat

Growth Mindset
•   Talent and intelligence can be developed
•   Embraces challenges to grow
•   Failure is an opportunity for learning
•   Effort leads to mastery and success
•   Uses criticism and feedback to improve
•   Finds inspiration and learning from the success of others

It’s easy to tell someone to develop a growth mindset, but, if mindset is so deeply engrained, how does a person change it? Here are six ways to begin:

Six Simple Mindset Shifts to Improve Success

  1. Embrace failure instead of avoiding it. The faster the failure, the quicker the learning. Before starting his auto manufacturing company, Henry Ford failed at his first several businesses. What would the industrial landscape look like had he given up after his first try? Remember, embracing failure also means success can arrive that much sooner.
  2. Think abundance instead of scarcity. When it comes to spending money on self-improvement, many people resist due to cost. But clients and customers are attracted to people who believe in and value themselves. Instead of thinking of personal growth as an expense, think of it as an investment in your future.
  3. Embrace challenges. People who have a mindset of “growth” realize that challenges are just opportunities in disguise, and they choose to actively seek them out.
  4. Use setbacks as learning opportunities. No matter how thorough the plan, no matter how well-executed the details, obstacles will surface. Besides, who can predict with any real accuracy what setbacks will occur? Instead of wasting energy trying to prevent the unknown, why not just face obstacles as they show up?
  5. Don’t take it personally. Sometimes the best opportunities for personal and professional growth come from leveraging harsh criticism and negative feedback. How well do you listen to your customers’ and clients’ complaints?
  6. Stop re-inventing the wheel. Instead of resenting successful people for what they have accomplished, look to them to learn how they did it and turn that to your advantage.                                                                                                                           6.5 Have an accountability person to keep you in check.

Incorporating these simple mindset shifts will go a long way to help you towards business success by building your self-confidence.  Its amazing how a growth mindset “I think I can”, changed to “I know I can” coupled with strategic action can help you increase your productivity and fulfillment.  Let us know how these mindset strategies work for you.

Are you a highly motivated leader but struggle navigating the corporate environment? Do you wish you could lead with authenticity and more confidence? Would you like to break through to the next level? Go to www.actuateperformance.com or www.ElevateYourLeaders.com for free articles, information on private coaching, sign up for a 30-minute complimentary session.

 

Author’s content used under license, © Claire Communications