Success Strategies for Business Owners Growing Your Company... Delegate or Perish!

Success Strategies for Business Owners About SCORE Douglas S. Cavanaugh Successful and experienced business owners and executives acting as volunteers Free ongoing mentoring: One-on-one Signup on our website – Mentoring Tab Seminars, workshops and Meetup Group Resources for small business: manasota.score.org manasota.score.org

Success Strategies for Business Owners Introductions... Your Expectations? Introduce yourself What business are you in? What are your expectations for the meeting today? Record... End of the meeting feedback: Expectation Outcome Gaps

Success Strategies for Business Owners Sales Customer Service Purchasing / Manufacturing Distribution Finance Business Owners / Management - responsible for Business Performance Marketing Service Delivery Customers – Impacted by All Functions in Your Business Key Business Processes What should you delegate? How can you measure performance?

Success Strategies for Business Owners Delegate to Grow Your Business Benefits of Delegation: Creates culture of accountability for employees Employees gain skills/confidence Employee satisfaction increases Business builds employee strength to handle key tasks Reduce employee turnover / related costs Free owner’s time to work ON the business

Success Strategies for Business Owners Strategic and Operational Tasks How is your time currently allocated? Do you spend all your time working on Operational Tasks IN the business? Do you spend any time working ON the business doing Strategic Activities? Should you delegate and / or organize YOUR time better?

Success Strategies for Business Owners Strategic vs. Operational Tasks Cruise Line Management vs. Ship Captain Analogy StrategicOperational Advertising Bookings Competition Crew Hiring Customs Destinations Entertainment Booking Menu Planning Port of Calls Safety Ship Registrations Training Accommodations Baggage Handling Crew Evaluations Dining Room Service Evacuation Meal Preparation Navigation Room Service Passenger Safety Passenger Satisfaction Refueling Weather Changes Large Business mostly separated Small Business overlap / shared Not performed on ship Performed on ship

Success Strategies for Business Owners Strategic (ON the business) Examples 1.Conceptualize: (Vision) Product & Service, Customers, Costs, etc. 2.Organize: (Structure) Who will do what and when? 3.Implement: (Process) Space, Hiring, Professional Support 4.Motivate: (Commitments) Clear statements of what needs to be done 5.Analyze: (Information) Market Opportunities 6.Adapt: (Changes For Survival) Anticipate continual change

Success Strategies for Business Owners Operational (IN the business) Examples Customer Relationships Products, Services and Support Time Management Running Business and Resolving Problems Price and Cost Controls Competition & Supplier / Vendors Employee Relations Satisfaction & Turnover Record Keeping Input / Reporting for Operational Measurements

Success Strategies for Business Owners List 5 Strategic things to want to do more and how you will accomplish the change Prioritize 1(now) – 5 (within 6 months) List 5 Operational things to want to do less... Prioritize 1(now) – 5 (within 6 months) 10 minutes – then open discussion Better Balance- Exercise 1

Success Strategies for Business Owners Better Balance – Exercise 1 Work for 10 minutes

Success Strategies for Business Owners Effective Delegation and Time Management Time Management Tips Find what works for you Choose organization/scheduling system Use tech tools Group tasks Focus on most profitable tasks Eliminate unnecessary meetings and processes Get rest and relaxation Delegate John Christakos, Maurice Blanks & Charlie Lazor

Success Strategies for Business Owners Employee Training and Development Skills Inventory What skills do your employees have? What skills do they need for their current jobs? What skills do they need in order to grow with your company? What are they interested in learning? Exercise 1 – Improve your employee’s skills Theresa Alfaro Daytner

Success Strategies for Business Owners Employee Training and Development Cross-Training Your Staff Benefits: No outside assistance needed Do more with less Enhance employee skills Uninterrupted workflow Employees share knowledge Methods: Rotation Job shadowing Group training sessions

Success Strategies for Business Owners Employee Training and Development Outside Employee Enrichment Programs Where to get mentoring, training and education? Online Industry/professional associations Colleges and universities Adult education/continuing education Training companies/consultants Business coaches State Economic Development Department Chamber of Commerce American Express OPEN Forum

Success Strategies for Business Owners Attaining Peak Performance Creating a Culture of Accountability Set clear goals and performance standardsMeasurable and objective targetsAllow sufficient time to complete tasksResponsible for results, not just tasksQuarterly performance review – annual appraisalUse best practice methods

Success Strategies for Business Owners Attaining Peak Performance John Blancher Employee Performance Measurement No surprises – address issues when they occur Regular appraisals (quarterly work best, but at least annually) Objective performance standards Processes and results Involve managers Employee feedback 360-degree feedback

Success Strategies for Business Owners Key Performance Indicators (KPIs) KPIs should be used to show the performance of activities that generate value Chose which KPIs you want to measure and follow carefully KPIs can be very useful, but too many can be distracting Implement simple tracking methods using spreadsheets Setup trend graphs or tables so you can track progress and see changes in performance Later, you may find software packages which provide KPIs and built-in dashboards to display the data

Success Strategies for Business Owners KPI Cautions KPIs are great for measuring key activities and performance Need to understand the source of the data and what the KPI is really telling you KPIs are a valuable resource, but they don’t replace the need to understand how to read and use your company’s financial statements

Success Strategies for Business Owners Measuring Operational Activities If it can be measured, it can be managed Measure those activities with the greatest impact - for example: % of deliveries on time % hours that are billable hours % Product meeting quality specs Manufacturing cycle time % Travel time between service calls % Raw material orders received on time % Scrap / defects Overdue receivables

Success Strategies for Business Owners Non-Financial Key Performance Indicators – Exercise 2 Using the Worksheet in your folder, fill in the existing NON- FINANCIAL measurements (KPIs) that you use for your business What value does each brings to you? Think about areas that you think need improvement, but perhaps you don’t have good methods to measure performance. List new KPIs, based on the workshop discussion, that would be valuable to you to improve operations. How will you measure it?

Success Strategies for Business Owners Non Financial Key Performance Indicators – Exercise 2 10 minutes to work and then discussion

Success Strategies for Business Owners Assessing Your Business The SCORE Business Needs Assessment, it is in your packet. Download at: It will help you assess the current state of your business in 5 key areas: 1. Management 2. Marketing 3. Sales 4. Finance 5. Operations Decide what additional sessions to attend Develop a customized business improvement plan

Success Strategies for Business Owners Help Us, Help You Please fill out the evaluation form Your feedback is important to help us improve our programs!

Success Strategies for Business Owners References Lean Manufacturing / Lean in the Office (initial reference) The Superfactory Project (free and $$ info) Improving Performance book by Rummler and Brache The Executive Guide to Operational Planning book by Morrisey / Below / Acomb

Success Strategies for Business Owners Outside Enrichment Programs Where to get external mentoring, training and education? Online Vendors Industry/professional associations Colleges and universities Adult education/continuing education Training companies/consultants Business coaches State Economic Development Department Chamber of Commerce American Express OPEN Forum SCORE.org