About anentrepreneurswords

R. Lee Harris grew up in Manhattan, Kansas and has lived in the Kansas City area since 1977. A 1975 graduate of Kansas State University, Harris began his career with Cohen-Esrey, LLC as an apartment manager two weeks after he graduated. Now president and CEO, he is involved in apartment management, development and investment; construction and tax credit syndication on a nationwide scale. Over the course of his career Harris has overseen the management of more than 27 million square feet of office building, shopping center and industrial space and nearly 60,000 multi-family units. He has started dozens of business enterprises over the past 40+ years. In 1991, Harris wrote a book entitled, The Customer Is King! published by Quality Press of Milwaukee. In 2012 he authored the book, An Entrepreneur's Words to Live By. He has mentored a number of business people over the years and has been a long-time participant in the Helzberg Entrepreneurial Mentoring Program. He and his wife Barb have two grown daughters and one grandson. They are active in their church, community and university.

Civil War

Posted on December 4, 2016 by anentrepreneurswords

Saying that our society has become very polarized is a massive understatement. The 2016 political campaign was one of the nastiest and most vile election cycles I’ve ever seen. Personal attacks drowned out any attempt to discuss the issues and it was pretty clear that up and down the ballot, the candidates really did not like each other. There are many reasons that we find ourselves in this mess – but that’s not the point of this blog. Instead, I’d like to explore the long lost notion of respectful disagreement.

Many of us entrepreneurs have a healthy ego drive. This is a good thing and should not be confused with the self-centered, destructive aspects of ego. Ego drive is our desire to persuade someone to agree with us. When an entrepreneur hears the word “Yes,” it’s music to our ears. We develop marketing strategies, sales pitches and a variety of other theses to convince others to see things our way and buy whatever we’re selling. This might be an idea, a product, a service or whatever. We all know that things go relatively smoothly when heads are nodding approvingly and the Yes-word often finds its way into our eardrums. But we are also aware – sometimes painfully so – that others don’t always agree with us. And if we aren’t careful, that’s where the trouble begins.

Respectful disagreement is guided by the ageless precept of the Golden Rule. Do unto others as you wish them to do unto you. Pretty simple – right? Yet, our strong ego drive sometimes makes it difficult to practice the Golden Rule. We struggle to understand how it could be possible that someone else doesn’t see the logic that we have offered. We can’t believe that another person actually has a counter perspective that is possibly 180˚ different than ours. Tempers may flare, veins in necks begin popping, faces get red and jaws are clenched. The whole situation can quickly devolve into raised voices, hurt feelings and a completely unproductive encounter.

Here’s what I’ve learned about respectful disagreement. It starts with understanding that we’re all equally entitled to our opinions. Thus, while what I believe may or may not be right, it doesn’t entitle me to become a flaming you-know-what when making my case to others. Further, I need to remember that positive persuasion is much more likely to produce the outcome I desire than is a negative approach. Remembering to smile before engaging in a persuasive moment helps set a positive tone. I also work hard to avoid making inflammatory statements. For example, saying “You obviously don’t understand what I’m saying,” can sound accusatory. A better approach might be to say, “Let me explain things differently,” or “I’m sorry, I’m not being very articulate with what I’m saying.” Being mindful of my body language is also important. I try to make sure that I maintain an “openness” at all times. I use non-threatening gestures; keep from crossing my arms; eliminate the urge to sigh or roll my eyes, and retain a passive facial expression. When we nod and say, “I understand what you are saying,” whether we agree with it or not, we are signaling the desire to preserve and continue a dialogue.

If we want to get to Yes, we do everything we possibly can to make the other person feel important and respected. We fail at this when we are manipulative, have hidden agendas, or take an approach that makes that person feel small or angry. Sometimes it’s hard work to stay positive and courteous throughout the encounter. Maybe the other person doesn’t choose to follow the Golden Rule. But that doesn’t mean we should do the same. If we don’t end up on the same page, it’s perfectly acceptable to say, “Let’s just agree to disagree.”

Civil and positive discourse is still possible. Practicing it will dramatically increase our chances of success as we work to persuade others to say “Yes.”

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 – Audio Episode 21 – Fortune Telling

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.

Get Outta the Way!

Posted on November 27, 2016 by anentrepreneurswords

I was talking with a friend the other day and he mentioned that he gets uptight speaking in public. I’ve had conversations over the years with others who expressed varying degrees of self-consciousness about a myriad of issues. In some cases, there was a dislike for attending functions that would require meeting large numbers of people. In other instances it was a solo meeting with a high profile individual. Someone even mentioned how nervous they were during a radio interview. Entrepreneurs are thrust into a multitude of situations that require interacting with others and we must be able to do so gracefully and easily.

Being self-conscious is inwardly-focused. I remember having no issue speaking in public during high school. And in my early college days I spoke at political events and in other situations with relative ease. Then one day I went to class completely unprepared and had to make a presentation – and I bombed. What an embarrassing and humiliating experience! It rattled me to the point that I was self-conscious about public speaking for a number of years thereafter. I tried everything advised by the experts. Take deep breaths. Smile. Tell a joke. I even envisioned a naked audience! I suppose these tips worked to a small degree but they weren’t the panacea.

What I eventually figured out was that I needed to get out of myself. In other words, I needed to get out of my own way. I was holding me back. Notice that there were a lot of “I” and “me” words in what I just said. And that was the problem. I was looking inward rather than outward. I was making the situation about me and not what I was truly there to do. Over the years I’ve spoken countless times in public and actually enjoy it. Now there’s more an anticipation of excitement rather than dread. And I’m energized meeting people in large and small groups alike.

Allow me to illustrate the notion of “getting out of myself” with another story. In October 2016, my mother-in-law passed away; she had asked me to deliver the eulogy at her funeral. I prepared and practiced my remarks and thought a great deal about how I might react in the moment. My biggest concern was the possibility of becoming emotional during the eulogy. This in itself wouldn’t necessarily be a bad thing, except this sort of emotion can be contagious – especially for a grieving family. When the time came, I understood immediately that the remarks to be made were not about me. This was an occasion to honor and celebrate my mother-in-law. And thus I became totally outwardly focused.

Most of us have an innate desire to be liked and/or thought well of by others. When we begin to have doubts that others may not like us we can become very nervous or even embarrassed. I suppose for many of us this goes back to childhood days when we may have been mocked at some point in time. Young children can be brutally candid to the point that scars are caused and invariably must be dealt with when we become adults. Developing a strong sense of self-worth – warts and all – is important to overcoming self-consciousness. And when we can get out of ourselves and focus on others we push unhealthy self-awareness totally out of the picture. This is true for public speaking as well as interactions with others – in groups or one-on-one. Warren Buffet speaks often in public. He’s not a handsome man and he’s not particularly articulate. But his words can be captivating because he is incredibly comfortable in his own skin and clearly is focused on his audience rather than himself.

So here’s the simple truth. When we are preparing for a presentation, a speech or interacting with others in a group setting, think about who it’s for. Is it about us? Or is it for others? When we can shine the spotlight away from ourselves we are getting out of our own way and our encounter will be filled with ease and grace.

Old-Fashioned or New-Fangled?

Posted on November 20, 2016 by anentrepreneurswords

I recently came across an article by Stefan Stern from the Financial Times publication dated November 10, 2008. “While cleaning out his attic, a British business leader stumbled upon some typewritten notes on leadership from the 1950s. ‘Leadership is the art of influencing a body of people to follow a certain course of action, the art of controlling them and getting the best out of them.’” Sounds kind of old-fashioned, doesn’t it? The art of controlling them? That’s an attitude that’s not likely to win many awards in this day and age. The article and this statement in particular got me to thinking about leadership. And because I’ve lived long enough, I’ve had the good fortune to experience many different leadership styles. So, here are some personal observations that have helped me develop my own leadership style.

Entrepreneurs are often “quick on the draw.” A team member asks a question or brings us a problem and our instinct is to provide the answer or solve the problem. Then we move on . . . quickly. In the old days, that would probably have been considered “leadership.” One of my goals is to develop a sustainable organization that is no longer dependent solely upon me. If I answer every question and offer every solution, how does this support others in their quest to step-up and become leaders in their own right? I believe that leadership involves leading people to answers and solutions rather than simply telling them.

I’ve heard certain pro athletes and a number of entrepreneurs who says it’s not their job to be role models. It seems to me that anyone who has the megaphone ought to savor the opportunity to set an example for others. Doing so also enables us to become more accountable to our team. Back to the sustainable organization concept for a moment – do I want to display anger; yell at people; exhibit boorish behavior, and generally put my ego front and center? When I model this way, what message does it send to up-and-coming leaders? Here’s the simple truth for me. I don’t want to show any sort of negative behavior for which I should apologize.

One of the toughest aspects of being an entrepreneur is communicating our vision to our team. Most of us have a vision of some sort locked away in our brains. I was asked for years by my teammates for my vision, but never could figure out how to articulate it clearly until recently. Having a vision and communicating that vision are two entirely different things. When I mentor other entrepreneurs I ask them a very basic question. What does it look like when we get there? Focusing on this question eliminates the psycho-babble and gets to the heart of the matter. In plain English it requires that we paint a word picture that everyone can understand. We should never forget that people are drawn to leaders who can express a strong and powerful vision.

As a leader, how much time do you spend working on your business rather than in your business? I can tell you that I love doing complicated real estate deals. Without question, that’s working in my business. It would be very easy (and profitable) for me to focus all of my time and energy on buying and owning apartment properties. But that doesn’t advance the cause for the sustainable organization that I have envisioned. Thus, I must spend significant time working on my business. This involves developing a wide range of strategic initiatives, cultivating and educating team members, and helping to define our mission. A great leader will spend far more time working on his or her business than working in it.

While there are many other modern leadership traits to be explored, the last one on which I want to focus is that of attitude. Leaders with negative attitudes generally produce negative results. Over the past four-plus decades I think I’ve become more and more positive and optimistic. I realized that it’s not much fun to work in a negative environment. And as a leader, if I’m down-in-the-mouth it’s pretty hard for that attitude not to become contagious. I’ve come to realize that there’s always a silver lining in every situation and it’s my aim to find it. This doesn’t mean that negative things won’t happen – they do. But the faster we can move on and regain positive footing, the faster we’ll get back on track. It’s my goal to be a positive and optimistic leader every second of the day.

Modern leadership still embodies ageless basics and fundamentals. But there are some “new age” twists that help propel us to new heights of success and create sustainable organizations in the process.

Danger Will Robinson; Danger!

Posted on November 13, 2016 by anentrepreneurswords

Lost in Space was a classic television show broadcast on CBS between 1965 and 1968. A young Billy Mumy played the part of Will Robinson who regularly interacted with the Robot. For those of you too young to remember, the plot centered on a modern day Swiss Family Robinson, marooned in space where the goal was to somehow figure out how to return to Earth. I enjoyed watching this show in black and white, and later in color, while Will and his family would constantly encounter misadventures. One of the most epic lines was spoken in a raised voice by the Robot – “Danger Will Robinson; Danger!” whenever Will was about to be eaten by some exotic space creature, or step into an abyss that lay below some cosmic quicksand.

We entrepreneurs need our own version of the Robot to help us avoid many of the missteps that we encounter in our daily lives. One such opportunity for disaster comes when we are in the middle of negotiating. In my world, we’re always buying and selling apartment properties. Let’s use the acquisition of one such property as the example for this blog. The property in question seems to perfectly fit our acquisition strategy. The location is right, the property age falls within the target time frame, the unit mix is perfect and historical data shows a very strong operation for the past several years. But . . . the price is significantly higher than we can pay to generate the return on investment we are seeking.

We negotiate back and forth. Offers and counteroffers ensue, but we just aren’t quite at the price we’re looking for. Here’s where we need the Robot to save us from ourselves. There’s a psychological threshold at which point we are committed to getting the deal done. We’re vulnerable at that point to being taken advantage of. Maybe we start looking at our projections again and tinker with the annual rent increase percentage we initially underwrote. When we do this, the numbers work and we’re able to close the deal. Yet, are the new rent increase projections realistic? Or are we simply looking for a way to rationalize the adjustment? I’ve certainly done it before. My reasoning went like this, “The standard 3% increase on this property is approximately $25 per month. Another .5% pushes the rent up by $29 per month. A renter isn’t going to balk at $29 any more than at $25, so I’m comfortable using an annual rent increase factor of 3.5%.” Now, it’s very possible that this line of reasoning is sound. But it’s important to understand the motivation behind it. Are we modifying our projections just to get the deal done, or are we really being ultra-conservative and there really isn’t going to be a problem with the rent increase tweak?

There’s a fine line to walk between being creative to successfully complete a negotiation, and allowing our emotions to drive the terms and conditions that we are willing to accept. By establishing strategic parameters in advance, we can avoid becoming vulnerable to doing a bad deal. For example, we will only acquire an apartment property that’s of sufficient size that we aren’t compelled to purchase a second or third property in the same market just to gain management efficiencies and economies of scale. It’s also important to remember to separate business negotiations from personal ones. Buying a piece of artwork for a personal residence is an emotional decisions and it is acceptable to allow emotions to enter into the negotiations. Making a business acquisition of some sort should be completely divorced of emotion in all but the rarest instances.

In a business negotiations, understanding where the line is between sound decision making and being vulnerable to manipulation, is critical. Establishing strategic parameters before the negotiations commence and then sticking to them during the negotiating process, will help us avoid crossing this line.

Just Do It

Posted on November 6, 2016 by anentrepreneurswords

Nike’s corporate tag line is “Just Do It.” And that could be the tag line for many companies of all sizes. Leaders at all levels send the message of “Just Do It” to their “charges.” This notion boils down to a command and control style of management. And I probably don’t need to point out how poorly this approach works with today’s Millennial workforce. We Boomers grew up in this environment and may have a tendency to continue its practice. Perhaps it’s time for something different.

I know that many entrepreneurs agree in principle with a more collaborative style of leadership. Yet, the language that is used may belie this agreement. Examine the following statement that rolls up many of the words used into a massive contradiction with collaboration. Mr. Smith is a senior executive with the ABC Company and he’s describing a recent business win for his company.

“My employees really came through with this project. I have a hundred people working under me and every one of them did their jobs like they were supposed to. I set their goals and they achieved them. I’ve been focused on this opportunity for a long time. I love winning this way!”

At first blush Mr. Smith seems to be giving credit for the win to others. But the way he says it indicates that he isn’t yet a convert to a more enlightened style of leadership. Note the highlighted words. It’s pretty clear that he’s in charge here and other people have done his bidding.

Entrepreneurs can change this narrative. When we are comfortable in our own skin we are easily able to eliminate the unhealthy aspects of our ego from our interactions with others. It’s often the case that having to take the credit for an accomplishment or reinforcing the fact that we were “at the top of the food chain” is a result of our own lack of confidence or some other insecurity. With our new level of comfort we are able to relax, smile and become totally humble.

Here’s another version of the previous statement. Mr. Doe is a senior executive with XYZ, Inc. and is celebrating a recent success.

“The XYZ team is amazing! They worked together to establish the goal and drew upon our Core Values to develop a winning strategy. We are so appreciative of each and every one of the hundred team members who worked tirelessly on this project for more than a year. Their commitment, dedication and creativity are the reasons for our success.”

Sounds a little different doesn’t it? There’s not a single mention of the words “I,” “me” or “my.” The word “employee” has been replaced with “team member.” Mr. Doe simply delivers the message without allowing his ego to enter the picture. It’s clear that Mr. Doe’s team members work “with” him – not “under” him. I’ve written before about how we need to be intentional about modifying our vernacular away from “I,” “me,” and “my,” and changing to “we,” “us,” and “our.”

Collaborative leadership is not decision making by committee – as a leader we still make the ultimate critical decisions. Collaborative leadership is about seeking out team members and listening to their thoughts and ideas. It is valuing others as human beings and the contribution they make to the enterprise. It is about having empathy and creating a culture of respect. And it is about using the words we say as a reflection of all of these factors.

When we think about what we write and say we can ask ourselves this simple question – “Do my words focus the spotlight on me or on others?” Doing so helps us move away from the old command and control approach of the past.

PM

Posted on October 30, 2016 by anentrepreneurswords

In this blog PM does not stand for night time. Instead it’s all about Preventive Maintenance. In the world of buildings and real estate, smart operators pay a great deal of attention to Preventive Maintenance. We pre-check furnaces and air conditioning units prior to the heating and cooling seasons. We inspect roofs and make repairs to flashings, gutters and other structural elements. Mortar joints are periodically tuckpointed, and windows and doors are caulked and weatherstripped. Elevators are maintained on a programmed basis along with fire suppression systems. Why do we do it? Because the cost is less than letting things go until they break. And a major breakdown can lead to customer inconvenience and potential life safety issues.

There are many parallels for entrepreneurs. Let’s start with the obvious. Our health and wellness is one of our most important assets. Maintaining our minds and bodies in top form has a direct correlation to our productivity and performance. We all know this is true but having the self-discipline to follow-through can be challenging. So here’s my challenge to you. Do you schedule a complete physical exam with a medical doctor every year? Do you go to the dentist once or twice a year? How about a regular eye exam? Are you getting enough sleep at night? Are you exercising regularly? Are you eating in a healthy manner? Here’s a tip. When I see a medical professional, before I leave I schedule an appointment for the next year. Then I don’t have to remember to do so later when I’m busy because it’s already on my calendar. Younger entrepreneurs may have a tendency to put off some of this “Preventive Maintenance.” They may think they are invincible or not old enough to worry about PM. But getting into a habit early in one’s career may enhance the quality of one’s life in his or her later years.

How about estate planning? Do we have one at all? Buying life insurance when we’re young is a very smart move. It’s so much more expensive the older we get. And don’t forget about disability coverage. Do we have a will? Is it reviewed periodically and updated as necessary? Are we using all of the estate planning tools that are available to us? I’ve been a big advocate of utilizing revocable trusts in which assets are held. It helps to avoid the expense and public nature of probate. We had a partner who understood the need for such trusts and I hounded him to title his assets this way. But he failed to follow-through. When he died unexpectedly his estate was a disaster. It took more than two weeks to locate the most current version of his will. Many of his assets were subject to probate because they weren’t held in trust. In the end, it took several years to settle his estate and the lawyers were paid hundreds of thousands of dollars to untangle the mess. Here’s another tip. I keep an estate planning notebook and update it twice a year. Everything that my wife, children, tax accountant and estate attorney would need to be aware of is contained in this notebook – both in hard and electronic versions. Copies of all of my partnership agreements, loan documents and other important business information are burned to a CD-ROM.

Preventive Maintenance even applies to our relationships. Are we taking vacations at the appropriate intervals in order to maintain our sanity and that of our families? How about the relationships we have we members of our team? Sometimes entrepreneurs have a tendency to power along without regard to how teammates may be feeling. We are focused on accomplishment and can easily forget to focus on the well-being of others. To avoid this trap, I create calendar-driven electronic tasks that remind me to periodically set breakfast or lunch with various members of my team. I feel that it’s important to get out of the office where I can focus all of my attention on those individuals. Entrepreneurs generally work on their external relationships with veritable ease. And a similar effort must be made to avoid neglecting internal relationships.

Entrepreneurs should view themselves just as they would an expensive, high-performance automobile. We wouldn’t dream of skipping the recommended maintenance on such a car. And thus we should make certain that we are just as attentive to the Preventive Maintenance that is needed for our health and wellness, estate planning and relationships.

Vreugde (and More Gioia!)

Posted on October 23, 2016 by anentrepreneurswords

Yeah, I had to look them up too. The first word is Dutch and the second word is Italian. But they mean the same thing. In Spanish the word is alegría and in Swedish it’s glädje. So enough with the mystery. The word is JOY. Unfortunately this is a word that is foreign to many entrepreneurs.

You see, we entrepreneurs are a pretty serious and driven bunch. We have important stuff to do and companies to build. We’re always moving at the speed of light and struggle to find enough hours in the day. Joy? Let’s see, maybe we can squeeze it on the calendar three weeks from Thursday at 2:00 PM . . . for 20 minutes. Is the picture coming into focus yet? The point is that many of us don’t allow joy to get within two miles, much less become an integral part of our lives. After all, feeling and celebrating joy isn’t very macho and we don’t want someone to get the wrong idea.

Why do we persist in having such an allergic reaction to joy? Can we become one of the next captains of industry and still allow for a modicum of joy? Of course we can answer in the affirmative and actually we must. Joy and success are tied inextricably by definition. If you don’t believe me – look it up! Merriam-Webster clearly states that “joy is the emotion evoked by well-being, success, or good fortune or by the prospect of possessing what one desires.” But here’s something else that I’ve learned. We can feel great joy when we celebrate the success and good fortune of others.

I believe that joy should become a part of our daily lives. It’s one of the healthiest emotions we can have. And here’s something I’ve learned that can become your secret weapon. Do you know what it feels like to get stuck in the downward spiral of negative thinking? We lost a deal to a competitor that we were sure we had in the bag. Or one of our key team members just quit. And maybe the bank wouldn’t make the loan we needed. When faced with these kinds of issues our thoughts can turn dark very quickly. But we can just as quickly turn the tables by “jumping into joy” and with both feet. I started practicing this concept a number of years ago. Every time I’d start to feel down, I would intentionally find someone who was in a good place – a friend, family or team member. Then I would applaud their success or good fortune. It’s amazing what a lift this provided for me, not to mention how it made the other person feel.

Joy is uplifting. It’s shout-it-from-the-rooftops passion. It’s at least one level above happiness if not more. Joy kicks the endorphin rush into high gear and does all sorts of positive things to our bodies. We can experience joy through all five of our senses – sight, sound, touch, smell and taste. If we don’t practice it or if we wait for it to come to us, then in effect we’re suppressing it. But if we go looking for joy it’s incredibly easy to find. And don’t we like to be around people who are joyful? They are easy to spot. Their facial features are etched with a permanent smile and a twinkle in their eye. They radiate warmth and bubble with personality.

We can continue to be Mr. or Ms. Seriously No Nonsense, or we can lighten up and have some fun at work. For a number of summers, we had an Ice Cream Day. I dressed up in a ridiculous looking ice cream cone suit and pushed an ice cream cart around the office passing out Nestlé drumsticks, fudgesicles and other delectable delights. I had a blast and everyone had a good chuckle. This truly was a joyful moment for all.

Life is pretty boring without joy – and so are we. Joy tramples negativity and helps balance our emotions. There’s no downside whatsoever to reveling in joy.

The Bermuda Triangulation Effect

Posted on October 16, 2016 by anentrepreneurswords

Allow me to set the stage. Don, Shirley, Frank and Jessie all work for the same company. They are peers and interact on a daily basis. Let’s pull back the curtain momentarily and observe what is happening.

Shirley has stopped Frank in the hall. They have an exchange that goes like this.

Shirley: “Frank, you won’t believe what Don did. I’m so frustrated with him! He was supposed to prepare graphs for the PowerPoint slides to insert into the Magruder presentation and he totally blew it off. How are we going to get these graphs?”

Frank: “Wow, Shirley! It’s incredible that he didn’t hold up his end of the bargain. You know, he’s done that before. What a bozo!”

Later, Frank runs into Jessie and their conversation went like this.

Frank: “Jessie – Shirley told me that Don completely booted the graphs for the Magruder presentation. She’s about to blow a gasket. I wonder if Don should even be on our team.”

Jessie: “That’s awful! Don seems to have a history of doing things like this. He’s being extremely selfish and doesn’t care about anyone but himself.”

What is happening here? I call it The Bermuda Triangulation Effect. The Bermuda Triangle is a region covering roughly 500,000 square miles in the Atlantic Ocean where ships and aircraft have seemingly vanished without a trace. In other words, it’s akin to a mysterious black hole, sucking in the unsuspecting. Unfortunately there’s no mystery to The Bermuda Triangulation Effect. Triangulation is a no man’s land where different parties whine, moan and groan about another party without speaking directly with that party. In our example Frank, Shirley and Jessie are triangulating about Don and the problems he has caused. Yet, no one bothered to talk to Don about the issue.

Triangulation is bad for business and bad for relationships. It’s pure poison and can dramatically and adversely impact the chemistry of a team. Why does all of this grousing happen among teammates in the first place? I believe that it’s indicative of a team that does not hold mutual respect as a cornerstone. Team members also don’t trust each other to the point that they can have conversations directly with the party who is causing issues. I’ve heard many people explain that they feel like such a conversation could be confrontational and they want to avoid conflict.

Here’s the truth. Entrepreneurial leaders must take all steps necessary to eliminate triangulation. This starts with identifying clear roles and accountabilities for each team member. And everyone must clearly understand how they are accountable to each other. This accountability should include a process for addressing issues and concerns that are encountered from time-to-time. Team members should understand that it is incumbent upon them to speak directly with another team member should a challenge arise with that individual. Discussions among peers should be taboo as they are counterproductive and accomplish absolutely nothing. And team members should be discouraged from trying to resolve their issues via e-mail. E-mail is a one-dimensional form of communication and is one of the worst ways to try and sort out problems within a team.

Team members should be educated on how to speak directly with another team member in what might be perceived as an uncomfortable situation. Had our fictitious team been properly educated, the following exchange might have occurred with Shirley going to Don directly.

Shirley: “Don – I was looking for the graphs that you were preparing and found that they weren’t in shared folder. I need to drop them in the PowerPoint for the Magruder presentation. When do you think you’ll have them ready?”

Don: “Shirley – “I’m so sorry. I spent the night in the emergency room with my daughter and wasn’t able to finish them like I promised. I’ve been working on them and will have them completed in about 30 minutes.”

Shirley: “I’m so sorry to hear about your daughter. I hope she’s OK. If you need any help, just let me know.”

No triangulation occurred. The team continued to move forward to achieve its goals. Feelings weren’t hurt and time wasn’t wasted with angry chatter.

As entrepreneurs we must endeavor to create a culture of mutual respect where team members are totally comfortable having conversations of all sorts with each other. Stamping out triangulation should be a priority to this end.

Mule or Tortoise?

Posted on October 9, 2016 by anentrepreneurswords

Mules are interesting animals. They are a cross between a male donkey and a female horse. A mule is stronger than a horse and historically was used for heavy work in agriculture and timber. Mules are independent creatures and can be very obstinate and stubborn at times – hence the saying, “He’s stubborn as a mule.”

Tortoises are equally fascinating. They can live longer than 150 years and have hard shells that make them less vulnerable to predators. Tu’i Malila was the oldest tortoise on record, born in 1777 and died in 1965. If you’ve ever watched a tortoise, you know that they are slow, plodding reptiles. When they are presented with an obstacle they find a way to go around it.

The metaphor for entrepreneurs is obvious. And notice that I’ve avoided the even more obvious example of the tortoise and the hare – that’s a whole different blog someday. Instead, the lesson here is about stubbornness vs. perseverance. As entrepreneurs, we are continually confronted with situations that require some level of perseverance. If we fail to persevere, we end up flitting all over the place and accomplishing nothing. But when does perseverance turn into stubbornness? Presumably stubbornness is not necessarily a desirable trait. The dictionary defines stubborn as “unreasonably obstinate; obstinately unmoving.”

The story of Milton Hershey is inspirational. He launched three candy companies in New York, Philadelphia and Chicago. And all three failed. Hershey moved back to Lancaster, Pennsylvania where he started another company that made a unique type of caramel. But he was convinced that chocolate was the wave of the future and sold his caramel business to start the Hershey Company. Of course the Hershey Company went on to become a huge success in the milk chocolate business.

Was Milton Hershey stubborn, or did he persevere? Back to the dictionary which defines persevere as “to persist in anything undertaken; maintain a purpose in spite of difficulty, obstacles, or discouragement; continue steadfastly.” I believe Hershey epitomized the definition of perseverance. He had a vision. He was constantly tweaking and refining his products. He surmounted his obstacles and eventually became highly successful.

Stubbornness is evidenced when we keep banging our heads against the wall trying the same things over and over. And it’s not working. Suppose we have a business that is struggling to gain traction. We’re not making much money – maybe even losing money – and we continue to keep doing what we’ve been without making any material changes. Now that’s stubborn.

Let’s take that same example and overlay it with perseverance. The business has been struggling to gain traction. We’re not making much money – maybe even losing money. But we believe in the long-term vision and aren’t about to throw in the towel. Instead, we step back and analyze what we’ve been doing. We do the research necessary to identify refinements and adjustments to our approach. Perhaps we even make a major pivot. Think about the tortoise. He reaches an obstacle that he can’t go over. Does he keep trying to climb over it without success? No, he “pivots” and moves a different direction, eventually ending up achieving his vision – whatever that might be for a tortoise. Perhaps our business needs a different approach to marketing and sales. Maybe we need to eliminate a particular product and add another. Regardless, we must do things differently than we have in the past. We don’t quit. We aren’t a victim. We simply get better at how we play the game.

Stubbornness doesn’t require much brainpower. There’s a lot of wallowing that occurs. Perseverance is smart. The vision persists. The ideas flow. And success is ultimately achieved.

Inches

Posted on October 2, 2016 by anentrepreneurswords

The drive from New York to Los Angeles covers 2,791.8 miles. Or put another way, that’s 176,888,448 inches. And to show you that I’m not playing favorites – for those of you who prefer the metric scale, the New York to LA trip spans 449,295,541.2 centimeters. Why the obsession with inches (or centimeters)? Simply put, it’s about progress. Totally confused? Let me explain.

We all know that progress is “a movement toward a goal or to a further or higher stage,” according to most dictionaries. We entrepreneurs hold a steadfast belief that progress is the Holy Grail, and wheel spinning will send us spiraling into a major funk. Even progress that seems too slow to us can be cause for great angst. I certainly stand before you guilty as charged! But here’s what I’ve learned. Sweeping change may not be lasting. Here’s an example. Suppose that our business begins to grow at a very rapid pace. Year-over-year our top line revenues (fueled by sales) increases 35% to 50%. What a wonderful problem to have – right? Well, rapid growth comes with a price. Often, there isn’t time to lay a solid foundation of systems and processes. We’re just go-go-go all the time. And the success masks over the rickety infrastructure that may have been installed in haphazard fashion.

Let’s look at another example. We’re negotiating a new contract with a vendor that has proposed taking over our entire human resources function. There could be a substantial savings involved. But this is a big leap, and what if it doesn’t work? How do we rebuild our HR operation? Would making a change force us to hire another outsource provider because re-starting our internal HR department would be too difficult?

There’s something to be said for embracing incremental change. I’m not saying that taking the inch-by-inch approach is right for every situation. There’s no doubt that there are situations where making a big, honkin’ impact is the right thing to do. But I know that too often I want everything at once in nearly every circumstance. And of course this leads to mounting frustration when it doesn’t happen to my liking. I’ve written before about patience – a gene that is absent for most entrepreneurs. Embracing incremental change isn’t all about patience however.

Incremental change can be plain smart business. Take the example of the outsourcing of the HR function. Perhaps there would be a way to dip our toe in the water with the vendor. Maybe we outsource a portion of the HR function on a test basis and evaluate the results. If after a sufficient period of time we feel comfortable, maybe we move another portion of the HR function (or even the rest of it). Maybe rather than grow at 50% per year we throttle back to 25% or 30%, and intentionally invest resources in building a solid infrastructure. Instead of rolling out an entirely new sales training program, we prioritize our weakest areas and develop training around them. The ultimate goal would be to implement a new sales training program, but over the course of 18 to 24 months.

As much as we want everything to happen right now, sometimes we’re better served by making change inch-by-inch. We take what the market will give us. We take the gains that our team can generate. Sure it’s nice to score a touchdown with a 103-yard punt return in 11 seconds. But we score the same seven points when we grind out positive yards. Yes, sometimes we achieve a first down with just an inch or two to spare. If we’re in it for the long haul, the incremental approach may even be more rewarding because our wins are not the result of a fluke or a lucky break. We know how to win.

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