You’re Fired!

Posted on July 29, 2018 by anentrepreneurswords

I was listening to a friend talk the other day about a period in his career where he was firing lots of people. His manufacturing company had a number of employees and sometimes he would fire as many as five in a day. It appeared that he kind of enjoyed this task. He liked to make a public spectacle of a termination. He’d yell at someone in front of their co-workers and then tell them they were through. And I quote, “There was none of this ‘you’re just not a good fit for this job’ nonsense. Very simply – you’re fired!” Whoa! This sounds pretty cold – maybe even cruel. I don’t agree at all with his approach, but the conversation was positive from the standpoint that it crystallized a concept for me.

Firing equals failure. You may think this is an obvious thing to say – of course the employee who is fired has failed. But actually I’m looking at it as a failure on the part of the employer. This is a critical distinction for entrepreneurs. The reasons for terminations are numerous. Poor performance, lying, misappropriation of company property, behavior that is contrary to company policy, insubordination, being tardy or excessively absent, drug (or alcohol) abuse during the work day – the list goes on and on. Still, the failure mostly falls on us as entrepreneurs when an involuntary separation occurs.

For starters, it’s quite possible that we hired the right person for the wrong job. The current labor market is very difficult for employers, and there can be a tendency to hire job candidates that simply aren’t the right fit. We resolve not to fall into this trap, but weeks later we’re hearing the rumblings from our team that they are overworked as they are covering the vacant position. Productivity is suffering and we finally hire someone who we know is probably “iffy.” We rationalize that we can make this person a project, and with a little mentoring they’ll be fine. The outcome is predictable. It seldom works out – both the mentoring and the new employee.

Hiring the right folks is hard work. Our company needs to at least have a neutral to positive reputation if we expect to attract the kind of talent we need. A negative reputation will likely result in driving away quality talent. A strong positive culture supported by authentic core values will bolster our reputation. Creating comprehensive roles and accountabilities is an absolute must. Actively recruiting for new team members is mandatory. Simply posting a position on an online recruiting website isn’t enough anymore. We must do everything in our power to create a large pool of qualified candidates from which to choose.

Once we have prospects for a vacant position, we need to pull out the stops to find the sparkling diamond that adds value to our organization. Testing, psychological profiling and multiple interviews with different members of the management team, are standard fare. Background checks and drug screening are also part of the process. Interviews must be carefully crafted to develop the full picture of an individual – strengths, weaknesses, traits, tendencies and even danger signals. Here’s the bottom line. It’s on us if we don’t hire the right person to begin with. And if we have to fire someone because they weren’t the right person, that firing is our failure.

When we terminate someone’s employment we must also take an introspective look at our own performance. We may have hired the right person for the right job, but did we do our part? How well did we train our new team member? Or was it the famous, “here’s your desk, here’s your phone, lots of luck, you’re on your own?” Another common rationalization for lack of solid training goes like this, “John Doe was in a similar position at Company X. We’re a fast-paced organization and we don’t have time to train people who ought to already know what to do based upon their level of experience.” There may be a grain of truth to this but for the most part, every new team member needs to be trained. The training may be less focused on the mechanics of doing the job and more centered around our company’s way of serving the customer, maintaining efficiency, being safe and increasing productivity. If we have to fire someone because they weren’t sufficiently trained, that firing is our failure.

Finally, we must ask ourselves whether or not the team member we are terminating had the proper tools and/or resources to do their job. How unfair is it to fire someone when we haven’t provided such basic elements to ensure his or her success? You probably wouldn’t be surprised to know how often this happens due to budgetary constraints. We expect someone to do their job perfectly, but then we hold the purse strings so tightly that they can’t even meet minimum standards. If we have to fire someone because they didn’t have the necessary tools and resources, that firing is our failure.

Firing a member of our team is nothing to celebrate. In fact it is often a failure of our leadership and can be prevented by putting the right person in the right job; providing sufficient training, and making sure to provide the proper tools and/or resources.

You can also listen to a weekly audio podcast of my blog. What you hear will be different than what you read in this blog. Subscribe on iTunes or wherever you get your podcasts. You can also click on this link – Click here to listen to Audio Episode 107 – Whale Sharks.

This blog is being written in tandem with my book, “An Entrepreneur’s Words to Live By,” available on Amazon.com in paperback and Kindle (My Book), as well as being available in all of the other major eBook formats.

The Entrepreneur Who Cried Wolf

Posted on July 22, 2018 by anentrepreneurswords

Harkening back to my childhood days, I remember a wonderful Aesop’s Fable called The Boy Who Cried Wolf. As the story goes, a little boy had a tendency to sound a false alarm that a wolf was attacking a flock of sheep. After doing this repeatedly, the villagers eventually stopped taking him seriously. Then when the wolf actually did eat the sheep, the little boy’s cries fell on deaf ears. In some versions of this story, the wolf also eats the boy. I believe that this fable is more apropos for our society today than perhaps at any time in recent memory. The current state of political affairs comes to mind as a perfect example of how over-the-top proclamations about how our country is doomed are being bandied about on a daily basis.

We can expand a modern-day Aesop’s Fable to include entrepreneurs – more specifically, entrepreneurs who engage in lying and distortion. There’s a distinction between puffery and lying. Puffery involves hyperbole which by definition is “obvious and intentional exaggeration not intended to be taken literally.” For example, if we say that our widgets are the “best,” there’s no objective way to measure this claim and the public generally understands the context to contain a degree of hyperbole. On the other hand, if we say that 99% of all our customers agree that our widgets are the “best,” then this is a factual claim that can be verified. And it becomes a lie if this fact is manufactured or we can’t prove that 99% of all our customers agree with our statement.

Where this gets really dicey for entrepreneurs is when the integrity line is crossed. Alex is the CEO of a start-up company and is pitching a group of investors for funding. During an interview with the investor group, he says, “Our firm has 35 customers and we’ve generated $500,000 in revenue.” What he doesn’t reveal is that he doesn’t really have 35 paying customers. He actually has 25 prospective customers that are using a beta version of his product for free; five current customers that are currently paying for his product, and five former customers that quit because they had issues with the product. What he also neglected to say is that his company has been in business for three years and $500,000 is the cumulative revenue generated during that time period. Did Alex lie about his company’s progress or did he engage in a form of puffery? While it’s not quite the false cry that a wolf is eating the sheep, Alex has definitely crossed the line through omission of key facts. Any savvy investor will drill down and quickly learn that Alex has misrepresented his situation – which will probably cost him the investment.

As entrepreneurs our integrity is our most valuable currency. When we go to the bank for a loan, it’s important that we put our best foot forward, but in an honest manner. We should be fact-based with our approach and present a true picture of our operations. At the same time, there is nothing wrong with sharing data trends that portray our company in a growth-mode. When we are reporting to our investors, we share the true, unvarnished facts. If things aren’t as rosy as we’d like, we provide an explanation about the issues we are experiencing. We have a real estate fund and write a quarterly report for our investors. Periodically I like to include a section called, “What’s Not Working.” In it, we discuss some of the challenges we are facing and what we are doing to overcome them. We’ve had feedback from investors who appreciate the fact that we’re not always trying to sell them on unicorns and rainbows.

Another problem area for entrepreneurs is that of overpromising and under-delivering. In fact, we would be much better off doing the opposite. We would do well to find one of the most skeptical members of our team and have him or her help set expectations. It’s likely that our optimism would be dialed back to a more realistic degree. Overpromising once may be forgivable. But if it happens over and over then we’re probably moving past the realm of hyperbole and into the arena of deception.

We all want to win which is a critical element of entrepreneurship. Doing so in an honest and forthright manner may not be the easiest path to take, but it will likely keep us from being eaten by the wolf.

The Modern Day Entrepreneurial Leader

Posted on July 15, 2018 by anentrepreneurswords

Are you an entrepreneurial leader? Leadership is such a broad topic that there are scores of books and blogs that focus on nothing else. Let’s scratch the surface by focusing on what leadership means in an entrepreneurial environment.

The modern day entrepreneurial leader is humble. He or she happily gives credit to others for successes realized by the enterprise. By being comfortable in his/her own skin, this entrepreneur delights in shining the spotlight on members of the team who achieve and excel. He or she is also quick to take the blame if something goes wrong. And there’s no pointing of fingers at team members who failed when this happens. This entrepreneur realizes that leadership is all about building other people up – not tearing them down.

The modern day entrepreneurial leader is always aware of others with whom he or she is interacting. This entrepreneur acknowledges them and shows genuine interest in their wellbeing. Expressing gratitude and appreciation is first nature for this person. Regardless of another individual’s station in life, the modern day entrepreneurial leader treats everyone in the same positive and uplifting manner. A smile, eye contact and a heartfelt “thank you” are equally extended to the barista in the coffee shop, the checker in the grocery store and the Fortune 500 CEO.

The modern day entrepreneurial leader always eats last. This may occur literally at the company’s annual picnic, or metaphorically on payday. If a venture is struggling to gain traction and is short on cash, this entrepreneur will make sure everyone else on the team gets paid first. In some instances this leader will even max out a credit card to bridge the gap until revenues from the enterprise provide the necessary cash to keep going.

The modern day entrepreneurial leader is strategic. He or she understands the difference between strategy and tactics and works tirelessly to refine a winning strategy. This strategy is then communicated effectively to each team member who understands exactly how they fit in the organization and what their roles and accountabilities are. The entrepreneur spends more time working “on” his/her business than working “in” it.

While being strategic, the modern day entrepreneurial leader isn’t afraid to get his/her hands dirty either. If there’s a job to be done and no one to do it, this leader jumps in to fill the gap. This could mean anything from answering a phone on the switchboard, making a sales call, spending an hour on the production line (because the individual normally assigned suddenly became ill), to cleaning snow off the front entry stoop. The entrepreneur never believes that any of these tasks are “beneath” him or her.

The modern day entrepreneurial leader is a visionary. He or she can clearly articulate the organization’s vision in a way that is understandable to all involved. And this leader is constantly looking at the industry, the enterprise and the customer to find new ways to innovate. The result may be the creation or refinement of products and services as well as ideas for streamlining the way those products and services are delivered.

The modern day entrepreneurial leader understands the value proposition and can differentiate his or her products/services. This can be a major problem for businesses at all stages of the lifecycle. A muddled approach to the value proposition can lead to confusion and apathy in the marketplace. This leader makes certain that the benefit of his/her products or services is very clear to the customer, and it’s easy to see that such benefits are significantly greater than with competing products or services.

Finally, the modern day entrepreneurial leader is the leading advocate of core values for the enterprise. He or she is always modeling them and high-fiving team members who do the same. These core values aren’t window dressing, but instead are foundational elements for the daily operation of the organization. This leader is also laser-focused on building a strong and positive culture. There is a realization that having the right team members on the bus is paramount and the entrepreneur works tirelessly to ensure that individuals who are not a cultural fit are excused from the enterprise. Further, each team member always knows where he or she stands from a performance perspective. This leader does not use blunt honesty that could harm morale. Instead he or she practices the approach of warm candor where a team member understands where improvement is needed without being destroyed in the process.

The modern day entrepreneurial leader is the complete package. He or she is humble; easily expresses gratitude; puts his/her needs secondary to other team members; is strategic; isn’t afraid to get dirty hands; is a visionary; understands the value proposition, and is the leading advocate for core values and culture.

The Expert Entrepreneur

Posted on July 8, 2018 by anentrepreneurswords

As an entrepreneur, do you know it all? Most people will answer that they don’t. But guess what – we should! I’m speaking metaphorically of course. The point is that if we expect to win over the long haul, we had better be expert at what we do. When we are in command of the facts, we project confidence to others and feel it for ourselves. Malcom Gladwell famously said that it takes 10,000 hours of continuous and deliberate practice to become an expert. That’s five years of plying our craft before we become truly proficient. So, does this mean that after five years of working in the same profession that we are officially an expert? Not so. How much of our day is truly consumed with “continuous and deliberate practice?” I submit that there are several things we can do that put us in such a lane . . . and many more daily tasks that don’t qualify at all.

Study! One of the first steps in our quest toward entrepreneurial fluency is that of study and research. We read every trade publication we can get our hands on, and every book that is even semi-related to our industry. We surf the internet for the latest trends and news that might be salient. In the earlier days of my career, there were many articles that were ripped out of magazines and circulated throughout our office. Today it’s much easier to share information with others and here’s the key. We NEVER stop studying and researching. It doesn’t matter if we’ve been in the business for five years or 45 years, we continue to be a sponge for knowledge.

Professional designations! Earning a professional certification or designation is another step toward becoming an expert. One of the first things I did after I entered my industry was begin taking the coursework necessary to attain a professional designation. I was only 25 when I received it, and it helped overcome my obvious youth in establishing credibility within the industry. I also made some lifelong acquaintances that have been very helpful in my career.

Experiment! Part of the process of continuous and deliberate practice is experimentation. Through experimentation we find out what works and what doesn’t. It’s comforting to know that the aircraft in which we fly were developed by experts. When we have surgery, we know that experts developed the procedures and techniques. These experts perfected the airplane and surgical techniques through literally millions of iterations. We entrepreneurs should be bold and unafraid to continually experiment to discover new innovations.

Collaborate! Hand-in-hand with experimentation is collaboration. We look for every opportunity to work with others who may have solved similar problems or are seeking answers in the same manner as are we. Being willing to collaborate is a sign of strength – not weakness. Rather than having to figure everything out on our own, we can shortcut the process of becoming an expert by joining forces. This is a leverage play and one that should not be overlooked.

Teach it! Teaching others is a terrific way to cement our own knowledge and to learn from others. During the teaching process many questions are asked by the “students” which can be stimulating for the teacher. Mentoring falls in this category as well. When we can explain things to others in a meaningful way and challenge them to think critically; and when it’s clear that they are realizing true value from what we are sharing, we are achieving expert status.

Participate in the discussion! This entails writing articles, blogs and books. It involves attending industry conferences and sitting on panels of – yes, you guessed it – experts! Who does the local or national press contact for information about an industry? If they are calling you, then you are probably regarded as an expert. Take full advantage of this opportunity and become the go-to person for as many newspapers, trade publications and other information sources as possible.

Know the answers! Finally, a real expert knows the answers and is right the vast majority of the time. We should have a deep understanding of the macro and micro elements of our industry and be able to explain how our product or service is capitalizing on these elements. Being able to construct logical fact-based arguments that persuade others is a priceless quality. And it unquestionably demonstrates expertise.

Becoming an expert in our field takes thousands of hours of study and research; is aided by earning professional designations or certifications; experimenting, collaborating and teaching; participating in the discussion and knowing the answers. And being an expert often provides a clear pathway to high levels of success.

An Entrepreneur’s Philosophy

Posted on July 1, 2018 by anentrepreneurswords

Jordan Peterson is a renowned Canadian clinical psychologist and psychology professor who wrote the bestselling book, 12 Rules for Life. I listened to an interview with him on one of my favorite podcasts, Econtalk with Russ Roberts. During the conversation, Peterson makes the following statement. “Life is fundamentally tragic, and ridden with suffering, and touched with malevolence and evil; and that goes for you and everyone around you.” And while Dr. Peterson may be highly respected and says much with which I agree, I must respectfully disagree with the preceding statement. Vehemently.

If we entrepreneurs bought into the premise that Life is Terrible, we’d never get out of bed in the morning. In fact, I believe just the opposite. Life is full of wonder and excitement. Life is full of joy and happiness. Life has far more upside than downside. And life offers unlimited opportunities for great and amazing things. This is not to ignore the fact that there are terrible things that do happen in life. But is life fundamentally tragic as Peterson posits? I think not.

I think it all boils down to perspective. If we choose to believe that Life is Terrible, it will be. Similarly, if we choose to believe that Life is Great, it will be. I’m not naïve enough to suggest that subscribing to the latter means that there will never be mountains to climb and challenges to overcome. But think about this. If we believe that Life is Terrible, those mountains are much harder to climb and the challenges much more difficult to overcome. It’s like adding a 75 pound weight to our back. What’s the point?

By now you know that I am the poster boy for optimism and positive thought. I attribute this mindset to the success I’ve realized over the course of my career. One of my mantras has always been, “What I think in my mind will become reality.” Because I only want Good in my life, I’m going to do my darndest to only think in positive terms.

We entrepreneurs have a lot to worry about . . . if we choose to worry. We could obsess over market share, customer reviews, rising labor costs, cash flow (or lack thereof), sales increasing too slowly, sales decreasing too quickly, government regulation, competition, legal issues, succession planning, production issues and whether we remembered to close the garage door when we left home this morning. Whew! Just thinking about all of this wears me out. But with all of this worry, concern and obsession, what exactly has been accomplished?

Being a Type A personality and maintaining a “chill pill” attitude isn’t the easiest thing in the world. Over the years I’ve discovered that concentrating my energies – mental and otherwise – on taking positive and productive steps leads to positive and productive results. There’s a surefire method that I use to measure my stress factor in this regard. I use a wrist cuff and take my blood pressure and pulse every day. I record it on a log including the time of day as well as notations as to what might have been occurring just prior to the reading. This single act is enough to serve as a reminder to remain calm. I’ve found that each year, my average systolic and diastolic readings have gradually decreased.

I’ve also trained myself to live in gratitude as much of the day as possible. When I am outwardly grateful to others for all of the good they do for me, a form of armor is created that protects me from the Life is Terrible syndrome. I’ve also found that there’s always a solution for just about every difficulty we may encounter. Somehow things just seem to always work out. I don’t think this is by accident. By maintaining focus on positive outcomes and really believing that we are entitled to them, they ultimately manifest. No longer do I blow a gasket when something doesn’t happen as planned. No longer do I wake up in the middle-of-the-night with cold sweats and a feeling of impending doom. No longer do I experience free-floating anxiety.

Jordan Peterson’s “Life is Terrible” philosophy is dangerous for entrepreneurs to adopt. A “Life is Great” mindset opens the way for a rich and full experience every single day.

An Entrepreneur's Words to Live By

Lifechanging Ideas for Entrepreneurs

Monthly Archives: July 2018