Posts tagged "focus"

Negotiation Strategy

Focus on the Problem

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“When dealing with people, remember you are not dealing with creatures of logic, but creatures of emotion.” Dale Carnegie

Dale Carnegie’s quote, eloquently summarizes a major challenge we face at the negotiating table. Negotiations tend to get complicated due to the fact, that as human beings we bring a lot of baggage to the process. In the seminal book “Getting to Yes” by Roger Fisher and William Ury, they have a dedicated section devoted to separating the personal element as much as possible, from the negotiation process. They identify three main segments which tend to complicate matters repeatedly, they are perceptions, emotions and communications. Listed below are a few tips on dealing with each segment.

1. Perceptions: As stated in yesterday’s blog post, if we do not look adequately into the other sides position and interests, our perceptions will be skewed. We may perceive an issue in a certain manner because of a particular reason, whereas, it could be due to something completely different. We need to open up candid discussions on both sides. Unless this is done, both sides will blame the other and point fingers. Each side needs to be part of negotiation process, as also clear on each other’s positions, to reach a mutually agreeable decision.

2. Emotions: This area tends to complicate matters during the negotiation process as a routine. To become an adept negotiator, one needs to become emotionally aware of ourselves and others. Emotions tend to play either a positive or negative role in negotiations. It is only when negative emotions such as anger, fear and distrust come into play, that reaching a consensus becomes very challenging. As skilled negotiators it is important to keep a constant check on our own emotional levels, as well as that of the other person. When we sense a boiling point it is important to diffuse the situation by either changing our stance or by temporarily leaving the scene. It is important to focus on the issue at hand and not take personal jabs at the other person.

3. Communication: During the negotiating process if the involved individuals are not able to communicate properly, chances of reaching any sort of agreement is minimal. We need to ensure that during the negotiation process both parties communicate clearly and listen actively. At the same time, we need to be aware of non verbal communication as well. Key factors such as eye contact, facial expressions and body posture are continuously communicating messages to the other side. We also need to be aware of the non verbal cues we may be receiving from the other side as well. Miscommunication is one of the primary reasons why negotiations break down, we must ensure that the focus on keeping channels of communication clear at all times is maintained.

The entire objective of negotiating is to find a mutually acceptable consensus. To ensure that this objective is achieved, we need to keep the process as simple as possible. If we complicate the process by bringing external baggage into the equation, chances of reaching a consensus become slim. We need to ensure focus on the issue at hand at all times. This will undoubtedly be challenging, and there will be moments when our emotions will get the better of us. However, if we always remind ourselves of the core issue and make a concentrated effort to reach a consensus, both sides will benefit.

Leadership Strategy Teams

5 Steps to Better Startup Leadership

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Dilbert.com

There is a school of thought which believes that leaders are born, not made. Others believe the same applies to entrepreneurs. I have yet to see any conclusive evidence to support these claims. I am a firm believer that, with enough passion, hard work and ambition, anyone can achieve what they set out to do. Wanting to become a great leader is undoubtedly a most challenging task. Volumes have been written about leadership skills and how to develop them. However, inspiration and understanding concepts from books will only get you so far. If you really want to test your abilities and believe that you have what it takes to be a leader, you must stand up and take responsibility. It is all about being action oriented and wanting to bring out the best in the people who work with you. 

Over the course of the week I have written about five areas I believe younger startup leaders need to become more effective in. I have seen the positive impact on a team’s productivity, motivation and drive when a leader has focused on the following segments:

1. Vision Development: As a leader, it is your initial responsibility to create a vision with your team, one which is strongly rooted in SMART goals. The team must feel and think that the vision is achievable, and know what action steps need to be taken to reach it. It is only when a vision statement becomes more than a piece of paper, will we actually see a boost in productivity of the overall team. To read more about the importance of creating a vision please click here.

2.  Leaders Attitude: A leader’s attitude is usually the defining difference between a good team and a great team. With the right attitude, we assist the team break down mental barriers which may be holding them back, take away the fear of making mistakes and generally help them push themselves further. Pay closer attention to attitude, it should result in a team having higher productivity,and being more motivated and driven to reach their goals. To read more about the importance of a leader’s attitude please click here.

3. Culture of Candor: The ability to express one’s thoughts, opinions and concerns, free from discrimination is something I believe needs to be infused into every team. As a leader, there must be a focus on breaking down psychological barriers which may be holding certain team members back. Being candid allows the team to work more effectively, brings more ideas to the tables as well as issues which may be disrupting the team internally, to the forefront. To learn more about the importance of candor please click here.

4. Resource Allocation: During your startup journey, you will need to make several key decisions regarding resource allocation. A startup without proper allocation of resources, ends up in difficult situations, which may result in layoffs, discontinuing product/services, drop in quality, overburdening of some assets and may even require shutting the business down as a whole. As a leader, it is your responsibility to put systems into place to allocate resources optimally through a structured and rigorous processes, while keeping in mind the larger picture. To learn more about the importance of resource allocation please click here.

5. Team Management: This segment involves more than just making sure everyone on the team is happy or motivated. It requires the leader to take responsibility to develop structured processes to handle recruitment, evaluations, firing and conflict management. As a leader we have to be constantly in touch with our team and the challenges they face, to ensure we do whatever it takes to help them reach their potential. To learn more about the importance of team management please click here.

Undoubtedly the startup leader is in for a lot of surprises. The aim of this series was to equip new startup leaders with some broad guidelines of areas they should be focusing on. I strongly believe that when enough hard work is put into the development of the segments outlined above, they will definitely have a positive impact on the team and the business as a whole. It is important that you enjoy your journey both as an entrepreneur and a leader. I wish you the best of luck in your future entrepreneurial ventures.

Leadership Teams

Managing the Team

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Dilbert.com

We hear it all the time “People are our most important strategic asset”, it is like a mantra of the business world today, repeated by CEO’s of Fortune 500 companies and new startups alike. However, if  you get down to gauge what leaders and managers are actually doing, to develop and nurture these assets, the standard response includes; our focus is on training and development, creating a conducive work environment or, helping the team achieve a work/life balance. After which there is usually a change of subject, and the topic switches to more ‘exciting’ matters, such as, their latest technology innovation. This has been my personal experience with many leaders and managers. I feel they are missing critical components of what it takes to develop and grow a team. 

I believe the reason too much attention is not spent on the function of ‘HR’, is due to the fact that it’s results are intangible in the short term. What is the ROI of $X on training & development in a year? How does a more rigorous performance management system impact productivity? These are difficult questions to answer. However, trends are now becoming clearly apparent that senior management across the world are beginning to understand the importance of management of this asset. In the coming years, I expect to see radical transformations in this field. So, how does all of this impact a leader of a startup organization? 

As a startup leader, one has to play multiple roles. One of the key roles is to focus on being responsible for the management of your team to the best of your abilities. Until you can afford a good HR resource, this is a responsibility that falls in your scope of work. A couple of key areas where a startup leader should spend time during the early stages of the organization are:

1. Hiring: This component encompasses adding new people to the team, evaluating prospective partners and even vendor selection. In the beginning, adding an additional resource to say a team of 4, is a substantial percentage increase in head count. This resource will have a deep impact on the rest of the team and requires careful selection. As a leader, you are responsible for coming up with basic job descriptions, required competencies and the preferred type of personality needed for the role. Learn to trust your gut instincts as they are usually right. Develop a structured process for the hiring and evaluation stage to streamline future requirements when the team is growing at a faster pace.

2. Evaluation: When we think performance reviews, many imagine complicated forms which take forever to complete, and have no real impact on the individual. This is very true of a lot of performance review processes found in many organizations. I like to keep things simple, a couple of questions relating to past performance, areas where development is required, issues brought up by other team members is all that is needed. I think it is important to have metrics in place which can tell your team members how they are doing and where they need to develop. Develop a short evaluation form and conduct them candidly every quarter if possible.

3. Firing: This is a tough one. I am not comfortable with the firing process yet, it is however an important aspect of being a leader. When a team member, whether a partner or an employee, in spite of repeated reminders and warnings regarding performance or behavior, does not change, a difficult decision needs to be made. This process becomes easier if you have a culture of candor present in your team. One needs to communicate the basis of the decision clearly and be firm. One bad team member is all it takes to drastically reduce productivity and team spirit. The sooner these situations are handled the better.

As a leader it is your responsibility to be in touch with your team constantly. This helps to understand where they need assistance, what their concerns are, as well as be a source of inspiration and guidance. If  all we do is keep paying lip service to ‘developing our most strategic asset’, the team will not be able to reach its potential and we would not have fulfilled our duties as a leader. 

Related Posts:

– 8 Characteristic of ideal business partners

– 5 Steps to creating winning teams

Leadership Strategy

Optimizing Resource Allocation

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Dilbert.com

Resource allocation is an area I believe many startups pay inadequate attention to. It does not matter if you are bootstrapping or have just received a massive cash injection, planning resource allocation is a critical function. A startup without proper allocation of resources, ends up in difficult situations, which may result in layoffs, discontinuing product/services, drop in quality, overburdening of some assets and may even require shutting the business down as a whole. I have personally witnessed repercussions of misallocation of resources, this has made me realize even more, the vital importance of this function. 

During your startup journey, you will need to make several key decisions regarding resource allocation. Some key ones are hiring, purchasing of equipment,  investment in new products/services, upgrading of office premises, expansion, marketing and staff development. Apart from this, there will be a constant flow of new proposals and investment opportunities, these will make the allocation process even more challenging. As a leader, it will be your responsibility to manage the expectations of the business, stakeholders and your team, to reach an allocation mix, aimed at satisfying each one of them. In my experience, aiming for a perfect equilibrium is a great challenge, difficult sacrifices will need to be made and not everyone will be completely satisfied.

I like to keep things as simple as possible, here are a few basic steps I take when thinking about resource allocation:

1. Planning: If you are at an early stage in your business, use the business plan to give you a holistic picture of goals, and a time frame for achieving them. Use that as your guide plan for resource allocation to various segments. If you are already well into your business, take a look at the historic performances of your products/services, evaluate your cash flow positions for the coming year and allocate resources appropriately. It is important to be in a position to see the bigger picture before any resource allocation is done. 

2. Analysis: During the planning stage, there will undoubtedly be several options for resource allocation. It is important that all the opportunities are carefully evaluated. Conduct feasibility studies and market research before making any substantial investment. It is important to look at future requirements the investment will have as well. Overlooking future implications of current investments, can result in massive cash flow problems which can literally bring business to a halt. Where necessary, use a ranking matrix to evaluate your decisions.

3. Consensus: It is important to get feedback and have open discussions during the resource allocation exercise. Wherever possible, use experts in their respective areas to help guide and educate the rest of the team. The last thing you want to do as a leader is to appear to make key decisions such as resource allocation autonomously. As a leader, it is your responsibility to present all available options and give your point of view for the optimal course. 

The objective of this post is to emphasize the importance of proper resource allocation. The steps outlined should help in developing a basic framework to help you during this process. I intend to do a more detailed post regarding various resource allocation strategies soon for specific types of businesses. 

Communication Leadership

How Participative is Your Team?

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Dilbert.com

I was introduced to the importance of candor in the work place in Jack Welch’s book Winning. Candor is essentially, the ability to express one’s thoughts, opinions and concerns free from discrimination or dishonesty. However, it has been noted by several psychologists, that the reason most of us do not integrate more candor into our daily lives, is because it goes against societal norms. It is essentially because we are constantly protecting our self interest, that we do not share our opinions candidly in sensitive matters, and do our best to ‘stay out of trouble’. We may survive without brutal candor in our normal daily lives, however, the absence of an environment of candor in a startup or business entity, will lead to missing out on many lost opportunities. 

It is the leader’s responsibility to integrate candor into the team. I believe that leading by example is the best way to fast track the integration of candor into a team. I remember the first couple of performance reviews I had with members of a team I had recently begun working with. Initially, when I asked questions relating to productivity levels of other team members or their last quarter’s performance, there was  a palpable  sense of discomfort. When I raised concerns regarding the performance of the business and asked the team to share their concerns, I was initially met with much silence. Eventually however, these psychological barriers will break down with adequate effort put into the process. As a leader, it is vital to help others feel comfortable in expressing their concerns and desist from becoming defensive or abrasive if they do not like what they hear. 

A couple of ways to introduce the concept of candor into your team is by:

1. Rewarding: During discussions and meetings, individuals who bring up viewpoints other’s have ben tip toeing around, should be rewarded through a pre-formulated mechanism. I incorporated this into a team I was working with, we kept a tally of who was adding the most constructive thoughts, ideas and suggestions. Keeping score, is in my experience, a great way to get people to participate.

2. Feedback: Institute monthly or quarterly feedback session among employees and yourself. If possible use a tool such as a 360 degree questionnaire to help get the process started. Everyone should provide their assessor and participant with a score on how helpful the session was. This helps get people talking and brings issues which may be bothering them, to the surface.

A word of caution,  integration of candor into your team environment may be met with initial skepticism. However, if the aim is to remain committed to making this a part of your team’s culture, it will most certainly give rise to more productive meetings, better ideas, faster approvals and eventually, lead to higher overall  productivity. 

Inspiration Leadership

It is all about Your Attitude

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Dilbert.com

Startups usually comprise of small, tight knit teams. As the leader of this group, your energy level and mood is a compass for the rest of team. It is the leader’s responsibility to ensure that he/she does whatever is required to keep the team motivational level and outlook positive. I have found this to be very tricky sometimes. There are times when , a lack of sleep, or not feeling too well, leads to not having the required positive attitude at work. This is clearly visible to the rest of the team and has a viral affect on the rest of the team members and productivity does suffer. By the same token, if there is a member of the team who always seems to have a negative outlook, the leader has to combat these views with positive ones to bring a level of overall equilibrium. 

There will always be times when the economy is bad, the competition released a superior product, the team lost a critical member, or a host of other situations which bring the team morale down. I have experienced several of these situations and have learnt that my response to the situation will go a long way in deciding its eventual outcome. If I choose to give up, get depressed or blame others because of a particular situation, it has a domino effect on both the business, as well as the team. As a leader, we have to be aware of changing dynamics both within the team, and externally, and adapt to them seamlessly.

Listed below are a couple of ways to keep your attitude and energy in constant check:

1. At the end of every week/month ask for feedback from your team regarding your attitude during the time period, on a scale of 1 – 10. If you get a score of 6, ask about specific areas which you can work on to bring it to say 8 next week. This may seem forced and uncomfortable at first. However if there is a culture of candor present at your startup, this will be a breeze.

2. Document all the incidents you feel caused your attitude or energy levels to drop drastically. Were the changes directed to any one person? What caused them? What were the repercussions? Once we have some patterns regarding when and what is causing attitude and energy levels to drop, we can take specific steps to stop them from doing so in the future.

A leader’s attitude is usually the defining difference between a good team and a great team. With the right attitude, we assist the team break down mental barriers which may be holding them back, take away the fear of making mistakes and generally help them push themselves further. Pay closer attention to attitude, it should result in a team having higher productivity,and being more motivated and driven to reach their goals.

Related Posts

– Event + Response = Outcome

Advice Leadership

Providing Vision and Focus

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Dilbert.com

I believe an important first step that needs to be taken by a startup leader, is providing a vision for the business as a whole. I am not referring to something formulated at a resort at a weekend retreat or some other offsite activity. Formulation of a solid vision requires detailed analysis about why your organization exists, the strategies you plan to use to reach your goals, and the underlying values which will help you get there. This needs to be a collaborative effort and should involve the entire team. In some of my earlier ventures, I disregarded vision as being a fruitless exercise, which involves just talking about goals and objectives without any solid foundations. A vision was something that needed to be put on the website to communicate a message like “We aim to revolutionize the creative designing industry by using state of the art technology and delivering maximum return on investment to our customers.” 

When new members joined the team they probably read the vision statement because it was framed and hung in the office entrance. They probably never noticed it after that. What then begins to happen (this process is accelerated at startups) is that team members begin to lose focus, and attention is diverted from the intended goal to something completely opposite. The business eventually starts to lose its footing, and struggles to find direction. The team becomes frustrated with the lack of progress, and motivation takes a nose dive. While all of this is happening, the leaders blame bad market conditions and increased competition for the loss of business. This is when they all need a reality check.

As a leader, it is your initial responsibility to create a vision with your team, one which is strongly rooted in SMART goals. The team must feel and think that the vision is achievable, and know what action steps need to be taken to reach it. Next, the leader has to infuse every member of the team with the spirit of this vision. It will get repetitive, as also really irritating at times to go on and on about something, but this is a vital and important responsibility. It is only when a vision statement becomes more than a piece of paper, will we actually see a boost in productivity of the overall team. One begins to see an increased level of focus and a tangible feeling of direction. If you are in-charge of a startup team or, any other team, start with creating a vision, and aggressively infusing your team with it!

 

Advice Strategy

5 Essential Facts about Revenue

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“A computer can tell you down to the last dime what you’ve sold. But it can never tell you how much you could have sold.” Sam Walton

An organization can have a great product and a great team, without any revenue however, they have very little. Revenue is the life blood of any enterprise; it fuels growth, motivation and success. Every organization strives to develop perfect products/services, most of the time however, they are developed with inadequate attention to revenue streams. What follows are shattered dreams and expectations, because a business without solid recurring revenue streams has nothing to stand on. Over the course of this week I have shared some basic facts with you regarding revenue streams, I have re-capped briefly below:

1. Revenue & Business Models: If you are writing a business plan or, are in a new startup venture, identify your revenue streams as clearly as possible, and understand what resources need to be put into place to realize their true potential. The future of your organizations rests upon these strategic initiatives. The business model must be based on sound revenue streams in order to succeed. To learn more about revenue and business models please click here.

2. Revenue & Market Segmentation: Once identification of a business model has been made, correct mapping of its target market is essential. Having a strategy to aim a product/service at ambiguous market segments results in spreading yourself too thin, especially when resources are tight. Market positioning of products is of paramount importance for successfully generating revenue at a quicker pace. To learn more about revenue and market segmentation please click here.

3. Revenue & Investment: Investing in correct revenue streams can be the difference between an organization that succeeds and one which does not. It is critical that metrics are put into place to ensure that all revenue streams are closely measured. This will lead to informed decisions on whether it makes financial sense to continue investing in a particular revenue or to focus energies on another stream to ensure that financial stability is maintained. To learn more about revenue and investment please click here.

4. Revenue & Change: Our world is in a constant state of flux. We are living through a time where we need to become adept at forecasting as also adapting to changes taking place. This principle applies to all aspects of our lives, in the business sense, it has far reaching implications. We have to avoid becoming rigid at all costs to maintain a competitive direction in the global market place. Failure to do so will result in an inevitable downslide of your organization. To learn more about revenue and change please click here.

5. Revenue & Metrics: Metrics are mandatory components of any successful business. Measuring your revenue streams is essential as you need to be aware of the growth rate of your streams, how quickly your pipeline is being converted, what sort of market share you hold and how the industry you operate in, is changing. Such metrics provide information that will allow you to make informed choices. To learn more about revenue and metrics please click here.

In todays day and age there are a plethora of startups which have no clear business model, some are purely developed attractive acquisitions while others wait to see how they develop. My advice is, go in with a plan on making money from day one if you want to build a strong and well founded organization. When developing your streams ensure that you cater to each level of your market segment and create opportunities for scalability and cross selling. Doing so will put you in a favorable position to succeed. 

Advice Strategy

Metrics for Revenue Streams

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Every company has metrics that track performance. The key question is whether these metrics really provide visibility to performance as viewed by the customer.” Steve Matthesen

Working at a startup, there are always a host of things which need to get done. It is a constant battle with time to stay on track and achieve goals and targets. In the midst of this daily commotion, we are inundated with information from all sides. To keep abreast of all these developments, it is essential to develop a system which provides dashboard views about current standings. This is where metrics come into play. They need to be incorporated into every major business function to provide real-time statistics and keep the focus in the right direction.

The metrics for revenue streams used at some of the organizations that I work with, range from being very simple to relatively complex depending on the nature of the business. I have experienced that there are a few metrics which need more focus than others where revenue is concerned. They are:

1. Revenue Stream Growth: This metric provides data regarding development of each stream of revenue by quarter. It involves data which includes percentage growth numbers, pipeline activity and deal closures. These figures provide detail analysis on streams that are growing at a faster pace than others, the stages of revenue facing plateaus and how projected business is forecast in the coming quarters for each stream. 

2. ROI on Revenue Streams: It is one thing to have an extremely high turnover and a completely different story when that is not being converted into bottom line results. This metric provides data regarding the profitability of each segment and a break-down of investment into the stream, as well as marketing costs and cost of goods/services. Constant vigilance helps regarding which streams need to be promoted and which need to be ceased. 

3. Market Share & Industry Analytics: This metric keeps track of current growth trends in the industry the organization operates in. It constantly updates data regarding major changes on competition, government policies, economics climate and company position. This requires constant study to stay current with the rapid changes taking place. 

While keeping all the metrics in mind make sure that you take time out to compare them with related metrics to customers, vendors, suppliers and distributors. This will ensure a complete picture of the current situation. At an early stage startup, complicated metrics are not necessary, what is required however, is the ability to put these metrics into practice at basic levels. This will ensure that the position and development of the company is dealt with more effectively.

Advice Strategy

Change and Revenue Streams

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“The key to success is often the ability to adapt” Anonymous

Our world is in a constant state of flux. We are living through a time where we need to become adept at forecasting as also adapting to changes taking place. This principle applies to all aspects of our lives, in the business sense, it has far reaching implications. This story has been heard time and time again, companies become complacent and rigid about rapid changes taking place and soon find themselves compromised. A story, very much in the news these days is, Yahoo!. This company once dominated web search. Today, it finds itself in a messy situation involving corporate raiders and hostile takeovers. What went wrong?

Yahoo! pioneers and leaders of web search throughout the 90’s became complacent about changes taking place in their domain space. A new entry startup called google started to develop traction. Before you knew it, they became a formidable player in the search market. Yahoo! failed to adapt to this change and continued diversifying their business model into new markets. They failed to defend their primary revenue stream, including a missed opportunity to buy-out google for $3b. This is an example of how the pace of change can turn positions in a matter of years, even for such a large firm. However, this is not the first story of its kind, nor the last, these mistakes take place on a daily basis.

If your organization has developed revenue streams which have potential of exponentially increasing over the years, it is your foremost responsibility to protect fiercely. This is done by continuous improvement of the processes, as well as developing complementary assets as barriers around that stream. If done diligently, you will be able to protect yourself from inevitable complacency, which could lead to an unfortunate outcome. On the flip side if you are struggling with your current revenue streams and not being able to develop them further, pay close attention to changes occurring around you. If you are promoting a product/service which has no place in the current market, you need to rethink strategy, and, as soon as possible.

Incorporating systems to account for changes in domain, industry, economics climate and external factors is critical to success. Make sure you have them in place to avoid trouble !