Strategic Discipline Blog

One of Michael Gerber’s [E-Myth Revisited author]precepts for building a business was that the business should serve the owner.  In order to do that Michael preached that you had to build the business to sell it one day.  Until now I haven’t seen a good test that could accurately offer whether or not your business is ready to market and sell.  Our Rockefeller Habits Checklist provides a good list of activities that when followed put your business in position where your executive team will consistently work strategically on the business, concentrating on the right things and not to be interrupted by the day to day operations.  That puts the business in a position to be sellable. 

Balance is extremely important in life and running a business.  When we set goals we can concentrate so much in one direction that something extremely important gets lost or eroded in the process.  At one time Delta Airlines worked hard to get their planes to arrive on time. The consequence of their focus on delivering this outcome resulted in countless passenger bags not reaching their destination on time.  One obsession hurt performance in another aspect of the business, customer service.  It’s like a tug of war.  If there’s no one resisting on the other side there’s a loss of balance. 

There is no more important place for business to balance then subjectivity and objectivity in operating your company.  You need both to run a successful business, yet too frequently the business is off balance, relying on one over the other.  It’s a high level aspect of business that I feel too frequently business owners and managers overlook or simply don’t recognize.

Subjectivity is the emotional aspect of your business.  It’s the squishy part that propels you forward.  It’s your commitment to a cause, quality, production, BHAG, Brand Promise, the reasons you are in business, including your core values and purpose. 

It was before FM radio had taken the lead in listenership from AM.  That’s how long ago this story is.  I was the sales manager for a 3000 watt FM radio station in Fond du Lac, Wisconsin.  My first year as a sales manager had been difficult.  We hadn’t managed to meet the previous year’s sales numbers and I was challenged to meet the new projections or the outcome would be back to a sales position.   

Routines are boring. One question I’m often asked is why do clients quit doing the Rockefeller Habits if they’re so successful?  The answer is the repetitive nature of routine.  Habits become mundane.  We all love the feeling of independence.  We yearn for the freedom to do whatever we want.  Yet in business without the right habits we fail to achieve.  You can tell the strength of a business and its leader by the strength of their routines. 

Why do most businesses fail?  It’s natural to assume most businesses fail due to poor execution.  The answer may surprise you. 

This week I spent about 16-20 intense hours working with a client’s executive team developing their strategic focus through Gazelles Two Day Rockefeller Habits Workshop.  In Willie Pietersen’s book Strategic Learning he indicates that focus and compounding are the two most powerful forces in the universe.  Developing clarity of focus is your springboard.  Albert Einstein called compound interest the most powerful force in the universe. [Compounding is reinvesting the income on an investment and watching your principle grow.  It grows exponentially over time.  See Chart below.]

A fundamental principal of Gazelles coaching is learning plus coaching equals growth.  The book Strategic Learning, by Willie Pietersen confirms and reinforces these principals.   The author points out that the key is to focus learning to shift from strategy as planning to strategy as learning, and thus to the new mission of strategy: to create an adaptive enterprise.

The Pace of Change is requiring you and your staff to maintain a constant awareness of the marketplace.  It is necessary to have your antennae attuned to every opportunity. 

I read several books while on vacation including one recommended by one of our Gazelles coaches, Strategic Learning, by Willie Pietersen.  I’m sure you’ve noticed how frantically the environment is changing.  One of my clients today when reviewing his preparatory work for our Two Day Rockefeller Workshop noted one of his greatest fears is keeping pace with the rapid changes in technology that influence his business.  He’s afraid some pimple faced kid in a garage may come up with a tool that will render his company obsolete.