Are You In The Know?

Coming out of the dark ages, we lived in the Agrarian Age where wealth was created from the land and, therefore, a few landholders had the power and wealth of the nation.  Battles were fought over land and the differing resources that the geography possessed, giving title deeds to the victor.

The Industrial Revolution changed this order. The era of capitalism was born with the creation of factories engaging workers through Adam Smith’s division of labour principles and the production of mass market goods, provided ever more cheaply through ever greater size of operations and the economies of scale employed.  This era started in the seventeenth century and culminated with massive industrial complexes such as Henry Ford’s car plants in Detroit.   

In the Industrial Age, the ability to attain capital, own and run factories by organising workers and machinery led to wealth for the individual.  There was a fundamental shift in financial power from the land to capital.   On a global scale this became the age where America industrial might showed itself and then latterly German engineering prowess and Japanese production efficiency rose to the fore.  Within all this there was the creation of industrial magnates, tycoons and a new rich.  It was also the birth of the middle classes.

In the latter half of the twentieth century we witnessed the birth of the Information Age which has allowed rapid global communications and networking to shape modern society.  Communications around the globe are now instantaneous through a multitude of channels with access to information on any subject only one click of a button away.

The providers of these channels and sources have prospered on an unprecedented scale benefitting from a global marketplace with seemingly no financial boundaries or constraints.

The Knowledge Age is now upon us and it has profound effects for business.  Once you have access to all the information you may need on any subject, instantaneously available at no cost, then what next?  Where’s the competitive advantage?

It lies, now, not in the information itself but how you know how to assimilate it, using one’s experiences, intellect and understanding to create added value to customers – and on a constant basis.  The Knowledge Era upon us is where ideas are paramount.  In this era, knowing how to use the relevant information in a digestible, implementable form and take it to market quickly is the key to success.  It has never been truer that it’s not what you know it’s what you do with what you know.   A good depth of knowledge, enables asking the right questions, to get the right decisions, to take the right actions and then – get the desired results.

In summary in the Knowledge Age a business owner needs to apply constant learning to their own development and seek out the best advice and ideas from knowledge rich sources of business.   In a competitive market those that choose to know more about their ever-changing marketplace and take Action will win.  

The Power of Curiosity

Being Curious

Curiosity killed the cat, they say…but only after it had used up its nine lives.  Being inquisitive and interested in people, things, and events is an admirable characteristic, both because it increases your own learning and also because it’s infectious.  If you display curiosity, those around you will be more curious than they would otherwise have been.

This will not only empower you you'll gain greater understanding, stronger relationships and learning from your friends, employees, peers or fellow networkers. 

An open, enquiring mind is a pre-requisite for continuous learning and development.  The alternative, a closed mind, is a recipe for stagnation and for the rate of change to exceed the rate of learning.

If you’re not already the sort of person who displays curiosity, it’s possible for you to learn to become so.  How easy or difficult this will be depends on your starting point.  If you feel curious, interested, and inquisitive…but don’t exhibit those behaviours, it’s comparatively easy to adopt behaviours that will demonstrate your curiosity.  You could, for example, embrace a commitment to talk to people about what interests them, ask lots of questions, and demonstrate how interested you are in them.  By feeling interested you’re already halfway there and these behaviours should be quite easy to adopt.

If you don’t feel interested, it’s quite possible to feign interest.  Most people will discover that if they pretend to be interested then they start to feel interested (fake it till you make it).  Your outward, exhibited behaviour will affect your inner feelings…rather than the other way round.

Curiosity provides the springboard for learning and development.  Curious, inquisitive people tend to:

• ask lots of questions

• think out loud

• play devil’s advocate

• dig and delve to find out more

• formulate and reformulate “theories”

• have lots of ideas

• challenge conventional thinking

This is an admirable list.  The downside is that people who are curious will often flit, butterfly-like, from one interest to another and not sustain their enthusiasm for any one thing.  As a result they fail to see things through to a conclusion.  They are good starters, but poor finishers.  If this describes you, even just sometimes, you can correct this tendency by working to maintain your interest, continually checking to ensure that your people are completing the things they've started.

Consistent curiosity is vital…the lifeblood of continuous improvement.  All learning and development emanates from an insatiable curiosity.

And that’s worth thinking about…

As Winston Said, 'Failing to Plan is Planning to Fail'

In my adult career prior to Business Coaching, I have only known the experience of having a plan and in a paradoxical twist understood fully that no plan survives contact with the enemy. In today's business context that certainly relates to the customer; 'no plan survives contact with the customer'.  That said without  plan you'll be running blind, reactive and unsure where you're going. With a plan and more importantly an 'end state' or 'intent' you achieve focused drive with knowledge of what you are doing and why. Planning focuses the mind and helps maintain discipline.

Here's my top tips on why planning forms a crucial element to getting started in business and remaining on course throughout.

1. The 'higher commander's intent'. When you first experienced that entrepreneurial drive to break away from a job and become your own boss; the business owner, you had a vision. That vision was the embryonic view of the future of your business. Knowing where you wanted to go the next question how you were going to get there, and communicating that journey to your team, bank manager or customers. Articulating the vision and forming the plan gives the focus and impetus to follow a course of action towards the success. The intent or the bosses intent is a written plan which tunes all parties into activities and action with a focus on achieving the intent.
2. By virtue of having a written plan you will have a series of milestones leading to the intent, to the vision. Essentially being able to chip away every day at the milestones will really highlight the progress step by step. A record of the journey and progress.
3. Focus on purpose. The actual process of writing and articulating your business plan will ensure you remain focused on the fundamentals, the lifeblood of the business. 

• The financial targets.
• Identify and focus on the target market with clear market research.
• Remain clear on the service or product for the customers. Details on the various aspects of customer engagement, managing their expectations.
• What is the marketing strategy, just how you are going to create the customer base.
• What the competition are doing.
4.  What if? A detailed business plan will enable strategies to be formulated taking into account various outcomes based on cause and effect. Having identified various potential outcomes will offer a series of solution and planning decisions to be made on the most probable course of action and have contingency in place. This increases the likelihood of achieving certain results and what actions need to be taken. 
5. The business plan forms the narrative for the cashflow forecast (finances in general), telling the story in numbers and supporting in words, it is afterall all about the numbers. A plan will also highlight the probability of success, show potentially when the return on investment will occur and what your targets are.  

Here's the important paradox in having any plan, they change. Having gone through the planning process will give you a great resilience and active response to the plan changing. Essentially you'll have a course of action in mind, likely to have worked through the potential of change and have contingency, being prepared. Arguably having the intent, the medium and long term vision in mind will allow you, the team and those who are invested in the business plan the dexterity to apply themselves in a manner to keep the end in sight.

Starting and running a business requires vision, a purpose and belief that you can succeed. Having a written plan with the vision in mind will increase the likelihood of success. See also my previous bloggs on why planning is so important. 

Critical Non-Essentials - Make difference to your Customers at Christmas

Critical Non-Essentials.  Principles

You need to know your talents – and lack of them.

You have to know your stuff if you want to succeed.   But being technically competent in the core part of your business is not the be-all-and-end-all.   There are other things even more important if you want to build a successful, profitable enterprise.  Your experience and training does not always reward you for the things that are useful in the real business world.   Sometimes it even encourages behaviour that will be detrimental to your future business.

People use the environment to make value judgments about the character and talents of the people in that environment.  For good or bad, we do use the personal appearance of others to make judgments about their character and value.  Do not expect your customers to value the same things that you and your peers value.  The way you appear to do something is often more important than what you do.

Concerning what you do:

·        Logic – what people think is powerful

·        Emotion – what people feel is far more powerful still!!

·        People don’t always value technical excellence…sometimes they just tolerate it.

Introducing the CNE’s

Customers judge your expertise in areas they do not understand by your expertise in areas which they do.

When you pay attention to detail in the very visible, non-technical part of your business, clients will tend to judge your core product or service as also having the same level of quality control.   So these little things that are quite inessential for doing your job (and which don’t impress your peers at all) nevertheless seem to play a great part in persuading customers that you and your people are good at what you do.

So CNE’s are not really non-essentials at all.   In fact they are highly critical to any business.

That said…because they seem to be so unimportant it is often hard to find the time to systemize them…it’s far easier to justify the time to develop systems so that the main areas of your business are taken care of predictably.

Super CNE’s

·        They persuade uninvolved third parties to say nice things about your business.

·        Word of mouth is a powerful, speedy and cost effective way of marketing your business.

·        People value relationships above everything else.

·        I need to understand the power of the CNE’s to effortlessly do ‘good’ in my business.

How To Create CNE’s

Step 1:   Choose an area that will convince customers that you’re good at your core business.

e.g.   an electrician who creates a system for cleaning up after himself so that the work area is absolutely spotless, i.e.

•             A detailed description of the method

•             A checklist

•             A system for reporting

•             A small clean-up box with cloths, cleaning fluids, small vacuum, rubber gloves etc

e.g.   a dentist who has immaculately clean walls, floors and carpets etc doesn’t have to worry about posting impersonal notices about how they sterilize the instruments

e.g.   a dental laboratory that presents caps with care to a dentist will have find that the dentists are far less likely to regard the quality of the cap suspiciously

e.g.   a bank that sends out a statement that’s plain, easy to read and human is far more likely to keep customers happy than one that looks like it’s from an automatic blood-scanning machine & which is full of cold, impersonal words

No matter how good you say you are. It often takes a well-designed CNE to convince people that what you say is true.

Step 2:   Make sure everyone in your work team understands the power of the CNE.

The way to  persuade people to be vigilant and tireless in their creation & maintenance of CNE’s is to educate them to the real importance of the seemingly non-essentials.

You must show your people that it’s in their best interests to impress your customers…and then that CNE’s really WOW customers.

Step 3:   Make a system to ensure that the task is always completed flawlessly.

Design simple, routine systems to do your CNE’s  the same way every time – without a lot of effort or brainpower (which would be silly).

Systems = consistency

Some effort to set them up but once perfected they’ll take little effort or thought.

The outcome is…simple systems that make a large impact on the customers and, after initial development, require relatively little effort.

e.g.   Washrooms in a supermarket that are always immaculate

•             Manual for the cleaners

•             Training for the cleaners

•             Card showing when due, cleaned

•             Notices urging customers to report unsatisfactory state

•             Periodic supervisor checks

•             Weekly check of all cards

You & your team will be rewarded each time a CNE impresses a customer…and once the team realise the importance…your standards will rise.

Six Insights Into CNE’s

Well constructed CNE’s take on a life of their own – complex tasks will happen automatically.

They work behind the scenes & s sometimes it’s hard to spot their immediate benefits.

Insight 1:   CNE’s will work with your team

Insight 2:   CNE’s will work with your suppliers. Concentrate on the little things in business & the big things will look after themselves.

Insight 3:   CNE’s are very efficient. They offer a far greater return on your investment of time & effort than most other things in your business. Work today while you have the time & energy in order to make things easier for you in the future when you don’t. Make sure that any effort you expend has an effect beyond the effort involved.

Insight 4:   CNE’s bring out the best in people.  A good CNE has a positive effect on everyone.

Insight 5:   You can create situations where other people’s CNE’s work for you.

e.g.   Paddi’s gardener goes the extra mile to keep his gardens immaculate because he’s allowed him to place a plaque advertising his business on the garden wall, i.e. it’s in his best interests to keep Paddi’s garden looking amazing.

Insight 6:   CNE’s need celebrations.

e.g. including the building cleaner in the bonus scheme & displaying her photo along with he other team members.

The Birth Of The Super CNE’s

Systemize the process of delighting your customers.

Everyone likes to spin a good ditty – so why not create one for your customers to tell about your business?

e.g.   Tea Set & Tea Ceremony vs. the X-Ray Machine.

No-one ever told a story about the excellent X-Ray machine.

Over the years the Tea Sets have returned many times the investment but the X-Ray machine has barely broken even.

e.g.  The 4 Door, V8 Cappuccino Machine.

CNE’s versus Super CNE’s

CNE’s

•             are the little household tasks that give people reasons to believe in your business, particularly the parts they don’t understand.

•             In the background somewhat.

•             Important but not exciting.

•             Stop you getting bad press.

•             Show you’re competent.

Super- CNE’s

•             Are CNE’s taken to a sensational degree so that everyone remembers and talks about them.

•             Get you good press.

•             Provide the WOW that gives people a good ditty to spin.

•             Provide the dazzle.

More About Super-CNE’s

What sets one business apart from another is often more to do with a product’s presentation than its actual quality.

Super-CNE’s get you talked about – Lead Generation.

CNE’s get you the customer - Conversion Rate.

Some CNE’s will also increase Number Of Transactions, Average ££ Sale & Margins.

Understand The Dialogue Between Customers.

A – Tells Super-CNE .

B – Yeah but is he good at his job?

A – Tells CNE stories which have convinced them that you are.

Super- CNE’s Are A PR Boon

How To Create Super-CNE’s

Step 1:   Pick something you’ll enjoy.

Step 2:   Choose something distant (but not too distant) from the core of your business.

Step 3:  Build on CNE’s that are extremely visible.

Step 4:  Pick areas of customer concerns to .

Step 5:  Take your Super-CNE’s to the extreme.

Step 6:  Make sure your Super-CNE’s appear difficult – but really aren’t.