Presentation on theme: "L ESSONS L EARNED A LONG THE W AY Gershen Consulting Barnett Gershen, President."— Presentation transcript:
L ESSONS L EARNED A LONG THE W AY Gershen Consulting Barnett Gershen, President
G ERSHEN C ONSULTING / BSCAI B EFORE W E B EGIN … 2 I only have 10 minutes, so I will have to move quickly through the material. As George Burns said – “The secret to a good sermon is to have a good beginning and a good ending; and to have the two as close together as possible” Reason I am here – To acquaint you with my experience and a few of the critical pieces that contributed to my success (including membership in BSCAI). I will spend a few minutes at the end of my presentation taking questions If you see anything here that you would like more information about, please leave a business card or take one of my cards and contact me: Office: (713) Cell: (713) Website:
G ERSHEN C ONSULTING / BSCAI A LSO - 3 Leave your business card for a chance to win a new iPad Mini, and don’t forget to pick up a few Gershen Consulting key lights! (iPad Mini will be shipped to winner)
G ERSHEN C ONSULTING / BSCAI F AMILY C IRCUS 4
G ERSHEN C ONSULTING / BSCAI Grew Associated Building Services (ABS) from 2 employees in 1957 to over 12,000, and sales of $232 million per year (The 9 th largest privately held maintenance contractor in the U.S.). I NTRODUCTION – B ARNETT G ERSHEN 5 Hands-on experience from leading Associated Building Services (ABS) from its inception to its successful sale in In 2005, founded Gershen Consulting, whose mission is to profitably provide the best consulting, mentoring, advisory, and investing services for CEOs in the building services industry – and have fun doing it!
G ERSHEN C ONSULTING / BSCAI XGI to ABS 6 Early days - XGI Passing of father “Mother is the necessity of invention” Early growth – First Employee Education – Texas A&M University of Texas (Masters thesis written on building services industry) Harvard – O.P.M. graduate School of Hard Knocks (Doctorate) “I love you, but I can’t work with you”
G ERSHEN C ONSULTING / BSCAI A Bit of History 7 Margie Gershen Abrams - A sharecroppers daughter Just give me a one way ticket, because “I’m never coming back here”…
G ERSHEN C ONSULTING / BSCAI 8
One or Two Years Ago… 9 - The Houston Post – June 15 th, 1972
G ERSHEN C ONSULTING / BSCAI ABS G ROWTH C HART – R EVENUE AND E XAMPLES OF C HANGES $2MM $21MM $90MM $240MM Sale of ABS $40MM 1947 – Inception - XGI o Established risk management program o Established CT management and stock option program o Implemented customer satisfaction procedures (quarterly) o Implemented relational counseling for team building o Implemented Birkman testing o Professionalized hiring process o Implemented customer and employee appreciation o Implemented strategic planning o Implemented incentive bonus plan o Closed first of several major acquisitions $ Revenue Year s o Implemented Exit Strategy program, maximizing value of company through use of value drivers system
G ERSHEN C ONSULTING / BSCAI A LSO I NTERESTING … $2MM $21MM $90MM $240MM Sale of ABS $40MM 1947 – Inception - XGI $ Revenue Year s 1965 – BSCAI Relationship w/ABS Established (Year of BSCAI founding) Consistent BSCAI Membership through 48 years of business
G ERSHEN C ONSULTING / BSCAI A F EW T HINGS I’ VE L EARNED A LONG THE W AY … 12
Courtship Affair Start-Up Infant Mortality Founder or Family Trap Maturing Divorce Premature Aging or Unfulfilled Entrepreneur PrimeStableAristocracyEarly BureaucracyBureaucracyCollapseFlourishing All businesses experience Life Cycles – ‘The Journey’ For a complete treatise on the Life Cycles concept, go to B USINESS L IFE C YCLES 13
G ERSHEN C ONSULTING / BSCAI All organizations, like all people, have certain lifecycles. S OME F UNDAMENTAL T RUTHS A BOUT Y OUR J OURNEY 14 All living organizations have issues that are common to each other. Knowing where your organization is at on the corporate lifecycle can be critical to its success, because…. A different management technique and overall goal system is required for each different Life Cycle stage – what worked in one stage WILL NOT NECESSARILY WORK in another.
G ERSHEN C ONSULTING / BSCAI As your business grows, your greatest strengths can become your greatest weaknesses. S OME F UNDAMENTAL T RUTHS A BOUT Y OUR J OURNEY 15 If you know what’s ahead of you, you can reach your goal of achieving the next level faster, easier, and more efficiently (and have more fun doing it). Your role as a leader is to accelerate your company’s ability to resolve problems.
G ERSHEN C ONSULTING / BSCAI Keep in mind – These stages aren’t ‘Mutually Exclusive’, and a business is never in just one stage. S OME F UNDAMENTAL T RUTHS A BOUT Y OUR J OURNEY 16 Also, a business is always moving along the life cycles continuum, it is rarely static. It is your job to determine where your business is along the cycle, and what direction it is going (an expert is often needed for this determination).
G ERSHEN C ONSULTING / BSCAI A NOTHER L ESSON : W HAT G OT Y OU H ERE …W ON ’ T G ET Y OU T HERE 17 Referring back to the ‘Business Life Cycles’ concept – Change is required to in order to move from one life cycle stage to the next. Unfortunately, change will require sacrifice, and sacrifice never feels good. However, the habits that brought you to this point WILL NOT necessarily help you grow PAST this point. In other words, you are ‘stuck’ in your current life cycle stage unless sacrifice is made and changes are implemented.* * This concept is examined in Marshall Goldsmith’s book “What Got you Here Won’t Get you There”
G ERSHEN C ONSULTING / BSCAI A N I NTERESTING C OMPARISON Courtship Affair Start-Up Infant Mortality Founder or Family Trap Maturing Divorce/Premature Aging Unfulfilled Entrepreneur PrimeStableFlourishing $2MM $21MM $90MM $240MMSale $40MM ABS Experience Common Business Cycle 18
G ERSHEN C ONSULTING / BSCAI 19 1.Have a system of labor cost control (The largest single expense) 2.Have a quarterly review process (Take advantage of opportunities for retention and additional work) 3.Participate in an employee partnershipping process (Employee evaluation and compensation review) 4.Follow consistent hiring practices (Hire, train, and retain the best team) 5.Have timely financial statements and meetings (To evaluate and set correction plans) 6.Run an effective invoice/cash collections process (Ensure timely payment for completed work) 7.Have an effective contract renegotiation program (Proactively identify your customer contracts that are going out for bid/rebid in advance and devise a retention strategy) 8.Have a risk management system (Provide value added services to you and your customers) 9.Have a fiscal budgeting system (Gives clear cut guidelines that all departments must adhere to) 10.Have a forecasting system (Consider “What Ifs” and devise available options) 10 F UNDAMENTAL C ONCEPTS OF A S UCCESSFUL J OURNEY
G ERSHEN C ONSULTING / BSCAI 20 S OME M ORE L ESSONS L EARNED
G ERSHEN C ONSULTING / BSCAI W HEN A RE YOU P LANNING ON E XITING Y OUR C OMPANY ? 21 Many would say ‘What do you mean, exiting? I’m just getting started!” However, sooner or later, ALL entrepreneurs leave their businesses, and ALL businesses get sold, given away, or liquidated in some way. You may leave feet first, but leave you will, one way or the other. This will likely be the biggest financial decision of your life. The more prepared you are for this (and the earlier you start planning), the more likely the parting will be a happy one. Most owners wait too long to begin the process…and it usually takes longer than they think. In fact – The process of planning for an eventual exit will lead you to questions that otherwise might not have been considered, and will lead management to build a better, stronger, more resilient organization…all while increasing the market value of the business* * This concept is examined in Bo Burlingham’s Book “Finish Big”
G ERSHEN C ONSULTING / BSCAI A NOTHER E XIT S TRATEGY 22 “I’m working as hard as I can to get my life and my cash to run out at the same time. If I can just die after lunch Tuesday, everything will be perfect.” Doug Sanders, professional golfer
G ERSHEN C ONSULTING / BSCAI N O S HORTCUTS 23 Keep everything I’m saying in perspective – This isn’t an easy process Successfully growing a company is hard work Well over 80% of businesses fail (remember the 80/20 rule) You can be successful – Work hard, and work smart (BSCAI can help you do both)
G ERSHEN C ONSULTING / BSCAI S O F AR, S O G OOD ! 24 A man falls off a tall building, and while he’s on the way down, he says… So Far, So Good!
G ERSHEN C ONSULTING / BSCAI We’ve covered a lot, but this is truly the ‘tip of the iceberg’ regarding lessons I have learned and applied throughout my career. For more information, you may contact Barney’s office: (713) “You saved us a boatload of money” “Our exit strategy was more lucrative than we thought, and we achieved a quicker culmination than originally foreseen” “We just got paid $15,000 to not work” (Referring to GC labor savings program implemented) L ESSONS - T IP OF THE I CEBERG 25 You are here
G ERSHEN C ONSULTING / BSCAI A LL THE L ESSONS A PPLIED …T HIS IS WHAT I DO NOW 26 o I founded Gershen Consulting in 2005 o Mission: To profitably provide the best consulting, mentoring, advisory, and investing services for CEOs in the building services industry – and have fun doing it! o Gershen Consulting helps other BSCAI members be more successful with: o Executive Recruiting o Growth, Sales, Marketing, and Strategic Planning o Customer Retention o Organizational Development o Succession Planning o Team Building/HR Issues o Quality Control o Leadership and Coaching o Acquisition Assistance o Exit Strategy Development and Implementation o And… how to have fun while doing it!
G ERSHEN C ONSULTING / BSCAI A LSO I NTERESTING … $2MM $21MM $90MM $240MM Sale of ABS $40MM 1947 – Inception - XGI $ Revenue Year s Consistent BSCAI Membership through 48 years of business 1965 – BSCAI Relationship w/ABS Established (Year of BSCAI founding)
G ERSHEN C ONSULTING / BSCAI O NE C ONSTANT 28 I implemented many changes throughout my career to move to the next level of success, but there are a few constants. One of them was active membership in
G ERSHEN C ONSULTING / BSCAI If you do what you’ve always done, you get what you always got - Alvin Ruben, Personal Weight Trainer I N S UMMARY … 29
G ERSHEN C ONSULTING / BSCAI “Just a note to say thanks for all you did for myself, my team and my company. Your advice and guidance was invaluable. It took us where we needed to go.” “Since we started working with Gershen Consulting, our company is projecting a sales growth rate of 10% to 20% annually for the next five years. This illustrates that implementation of GC strategies is the foundation of the sales program, and that sustainable growth is the result.” “We were so excited about our profitability bottom line increasing $400,000 based on the recent changes you implemented regarding financial tracking.” “Throughout my consulting career, I have had the opportunity to work with several outstanding CEO's and business owners, both inside and outside our industry. Recently, I had the honor to work with Barney Gershen, and as a result of working together and focusing on a common goal, we had a had a seamless and very profitable outcome. Our exit strategy was more lucrative than we originally thought, and we achieved a quicker culmination than originally foreseen.” “You saved us a boatload of money!” T ESTIMONIALS (P G. 1) 30
G ERSHEN C ONSULTING / BSCAI T ESTIMONIALS (P G. 2) “I have known Barney for over twelve years through associations and various business encounters. About three years ago we hired Barney to get our company ready to sell after 38 years of owning it. His analysis of where we were, how we got there, and where we needed to go was spot on. From developing a strategic plan to the implementation of the tactics his involvement was consistent and personal. Long story short, we sold our company at a good multiple and got more than we had planned. If you are looking for excellent professional advice on how to get to the next level of growth….give Barney a call.” “Barney - Thanks again for a great full day of very positive communication and creative meeting results.” “Since we've been tracking managers activities through the white board, it's like cell phones - I don't' know how we got by without them!” “Thanks for the detailed follow-up and your help each week. The changes you recommend are subtle each week but amount to be dramatic changes over time. We could not have made the changes without you.” 31
G ERSHEN C ONSULTING / BSCAI O NE MORE THING … 32 Throughout my career, BSCAI has… Allowed me to learn valuable lessons from my peers Allowed me to learn valuable lessons from mentors Helped me professionalize my company as CEO Provided amazing networking opportunities Allowed me to vacation in very nice locations Overall, BSCAI has been a constant resource for my success, all the way from 2 employees to over 12,000, and now in my consulting practice as well *And those vacations are deductible Helped me increase my top line, increase my bottom line, decrease my risk, and have fun while I did it
G ERSHEN C ONSULTING / BSCAI S PECIAL T HANKS … 33 Jon Amiet - CEO of First Step Computer Services in Houston, TX (my IT consultant for 8+ years) Cell: (832) Sherry Cartwright – My business manager (15 + years) and certified Birkman consultant (281)