[Editor's note: The boom market for sellers may be over. Interest rates are climbing, the stock market is down. The good, experienced Investment bankers and M&A professionals tell us that unless you have a high-performing company in a highly desirable market, this is NOT the time to sell your business, as valuations continue to fall for companies other than those top performers. They advise companies to spend the time during 2022 and 2023 getting the company in the best shape so that you are ready for the next good M&A market in 2024 -2025.
Mead's Issues for Growth
Thoughts from Dave Mead and discussion about issues and concerns for Small and Mid-size Businesses. Some discussion topics will include strategic planning and execution, improving profitability and cash flow, maximizing value for exit.
Tuesday, January 10, 2023
Don't miss the opportunity to sell during the next upturn
Sunday, January 8, 2023
Barrier#6: Lack of true accountability - Overcoming Barriers to Planning and Execution
[Editor's Note: In Issues for Growth Vol. 31, No.11, we asked the question, "Are there barriers blocking your successful growth and execution?" We then listed the Barriers to successful Planning and the Barriers to successful Execution. We are continuing a series of Issues for Growth where we will tackle each of these barriers and identify ways to overcome each. We continue with Barrier #6. -dpm]
- History of only partially developing plans
- History of unreasonable expectations and unachievable goals
- Lack of internal understanding about customers, competitors, and the market
- Gaps in management depth
- History of abandoning projects
- History of lack of openness and poor communications
- History of poor delegation and leadership development
- Lack of true accountability
- Unclear Vision and Direction: Employees do not know keys to company success- or they all have different views as to what they are.
- Goals may be unclear, confusing, or there are too many different goals
- "We keep adding initiatives and projects and never take anything off the list."
- Micromanaging or Command and control: Employees do not feel they have control over how to deliver results
- Lack of Job Understanding or Training: "I have never been shown what is expected"; "I didn't receive any training"
- Employees don't know where to go for help
- Employees feel Undervalued: "No one cares about my opinion." People do not feel their opinion is valued - that is, every employee
- People do not feel comfortable delivering bad news such as the "project is behind schedule" or "we have a major quality problem." So they ignore or sugarcoat things.
- People do not feel trusted.
- "I am not confident my efforts will be rewarded"
- "I suspect that my manager (or the company leader) may take advantage of me"
- "I question my manager's (or the company leader's) motives"
- "I am sure they will take credit for my accomplishments"
- Departments do not cooperate with each other. We constantly practice the "blame game"
- Employees are Not Engaged - "People do just enough to get through the day."
- Loyalty and seniority are valued higher than performance
Monday, January 2, 2023
Barrier # 5: History of lack of openness and poor communications - Overcoming Barriers to Planning and Execution
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Saturday, December 10, 2022
Barrier#4: Lack of internal understanding about customers, competitors, and the market
Barrier#4: Lack of internal understanding about customers, competitors, and the market
- History of only partially developing plans
- History of unreasonable expectations and unachievable goals
- Lack of internal understanding about customers, competitors, and the market
- Gaps in management depth
- History of abandoning projects
- History of lack of openness and poor communications
- History of poor delegation and leadership development
- Lack of true accountability
- Customers
- What do they like about your current products and services
- Where are the holes in your offerings? What are your customers' biggest problems/needs? How might customers respond to your strategic initiatives?
- Competitors
- What is your competitive position? Can you take independent actions without potential negatives consequences at the hands of competitors (Very few companies can do this)
- How are competitors positioned? What are their strengths and weaknesses? How will they respond to your strategic initiatives?
- Markets
- What are the holes in the market?
- What/Who are the potential disrupters? The category leaders of tomorrow are likely not from your current industry. New technologies, new approaches (think Apple iPhones, Netflix, Tesla) The list of one-time category leaders who were either arrogant or oblivious is lengthy.
- Classic example:" Keep doing what your doing...Just work harder and do it better." The Plan just adds x% growth to revenue and profit without any substantial changes in strategy or tactics
- Employees don't believe it is realistic and don't see it as achievable.
- Smart employees will begin to question what the leadership is doing and will not be fully committed to execution.
- Some might leave, or worse some may stay and be half-hearted
- Establish ways to solicit and review customer feedback on products and services - and review it at the highest levels. This should include win/loss analysis. Find ways to uncover unmet customer needs.
- Regular reviews of the competitive environment. What do customers like/dislike about competitors?
- Reward/recognize employees that are close to customers and competitors to look for and communicate field intelligence
- Conduct scenario planning to identify trends/technologies that might provide early indications of potential disrupters
- Utilize a planning and execution process that validates your approaches with customers, the competitive environment and the market
Wednesday, November 30, 2022
Overcoming Barriers to Planning and Execution -Barrier#3: History of unreasonable expectations & unachievable goals
[Editor's Note: In Issues for Growth Vol. 31, No.11, we asked the question, "Are there barriers blocking your successful growth and execution?" We then listed the Barriers to succesful Planning and the Barriers to succesful Execution.We are continuing a series of Issues for Growth where we will tackle each of these barriers and identify ways to overcome each. We continue with Barrier #3. -dpm]
- History of only partially developing plans
- History of unreasonable expectations and unachievable goals
- Lack of internal understanding about customers, competitors, and the market
- Gaps in management depth
- History of abandoning projects
- History of lack of openness and poor communications
- History of poor delegation and leadership development
- Lack of true accountability
- Too many ideas; Too many goals
- Unrealistic deadlines
- Every goal is a BHAG( Big Hairy Audacious Goal)
- Each senior manager has a different set of priorities - No consensus on focus
Sunday, November 13, 2022
Overcoming Barriers to Planning and Execution - Barrier #2: History of abandoning projects
- History of only partially developing plans
- History of unreasonable expectations and unachievable goals
- Lack of internal understanding about customers, competitors, and the market
- Gaps in management depth
- History of abandoning projects
- History of lack of openness and poor communications
- History of poor delegation and leadership development
- Lack of true accountability