Being a Great Captain

In a recent Management/Leadership session, Pete Phillips of Clean Sweep mentioned that since our weather has been so unusually warm, and spring has blossomed so early here, he is thinking of buying a sailboat. That reminded us of the idea of “setting sail” into new and uncharted business territories after the great economic storm we’ve experienced in the past few years. Many businesses wisely pulled back into safe harbors for a period of time. In fact, some of those that failed to make adjustments and continued their course were likely wiped out or at least seriously damaged. Perhaps you are one of those businesses that made the proper course corrections by making the difficult and sometime painful choices. By reducing overhead, limiting losses, and maintaining profitability you may have survived but there now is a new question: is it time to set sail again?

For most businesses, the painful lessons of the past years will not be easily forgotten, but is it time to move from safe harbors and again set your sights on growth and increased profits?

We certainly see the signs of economic growth all around. The lakes are still a little choppy, but many small and mid-size businesses are actively moving to take advantage of new opportunities. We see this mostly in the large volume of new investment in building stronger leadership teams, marketing, and growth efforts. Many companies are actively recruiting and hiring people at a torrid pace. Recently we have seen a substantial increase in companies hiring new people and most of these are not replacements of lost positions, but rather actual adding important position.

So who are they hiring, and what is their logic? For these companies and many others the number one challenge is the need to grow improve margins. Training leadership and current employees is often much more cost effective than hiring additional people, and using the latest management tools is essential to remain competitive in the future. Chances are that your competition cut back on their management, marketing, sales and customer service, so those who are willing to set sail by spending on these resources can give them a distinct advantage. Hiring professionals who are capable of growing the business is money well spent. Technology companies in particular tend to rely on developing the next greatest product to gain competitive advantage, but an effective sales and marketing effort must be a part of any long-term effort since no company can have the absolute best products all the time. Additionally, spending money on marketing from websites and search engine optimization to traditional broadcast and print media is worthwhile, and most of those willing to do so find that great deals abound for the moment.

Here are four questions to ask yourself before you leave the shore:

1. Are your efforts generating sufficient results? Perhaps it’s time to look for a new marketing strategy, but maybe it’s simply time to listen to your leadership team, employees and customers.
2. Is your current team capable of executing on the strategies required to grow your business? If not, do they need additional training and support or should they be replaced?
3. Do your managers know how to motivate, coach and hold their teams accountable? Many senior salespeople have really been account managers and are now struggling because they lack the skills (and in some cases desire) to prospect and find new business.
4. Have you identified the key performance indicators (KPIs) for your business? Identifying and measuring appropriate activities is now relatively easy with modern tools. Developing a performance “dashboard” will help manage and monitor the status of your efforts.

Waiting for calm waters may allow your business to survive, but many have decided that now is the time to set sail again by investing in people and growing their companies. If you have decided taking the helm with the wind in your face is better than sitting on the dock, then we look forward to celebrating your success.