Strategic Planning Archives - Lighthouse Consulting Partners

4 Steps to Effective Strategic Planning & Implementation

Learn to “Charter” Strategic Initiatives, Manage Accountability & Achieve Results

Most companies schedule their management retreat to develop and establish the strategic direction for the remainder of the year, as well as a 3-5 year outlook. The process, although it can contribute to team building by “getting away” from the daily grind, frequently does not result in strategy. That’s because what starts as a noble intention or cause ends with little to no accountability, letting life return to “normal” soon after the planning meeting. Effective Strategic Planning Implementation requires accountability both in the creation and management of strategic initiatives. Here is practical & accountable approach to effective strategic planning and implementation.

ONE: Develop Strategic Initiatives

Many times there is confusion between what initiatives are truly strategic versus what are simply tasks and obstacles that impact the daily operating procedure.

As an example of what not to do: one company identified distribution of various financial reports as a strategic means of raising financial performance. Although the concept may sound strategic it is merely an improvement in task execution, addressing an operational issue rather than a strategy that aligns with the direction of the company.

Here is what you should do: Your strategic planning session should generate and classify two types of initiatives.

1. A few critical initiatives expected to be implemented in the short term, within the current fiscal year
2. A few growth initiatives, requiring more exploration in order to lay the foundation for future critical initiative consideration.

Organizations that define more than 5-6 critical initiatives are generally focused on task implementation rather than strategy. Likewise, exploration of more than 2-3 growth initiatives represents a strategic planning outcome that has no direction or focus.

TWO: Assign Accountability

Once both critical and growth initiatives have been defined, individual Project Managers should be assigned to lead the charge, plan the implementation, drive the process & communicate the results. The use of chartering is a process commonly used by project managers that allows organizations to clearly convert strategy into action while managing accountability.

For each strategic initiative a charter is written, reported against and reviewed regularly by the management team. It is important to note that as a result of exploration efforts, growth initiatives can often become new critical initiatives that require project managers and charters.

THREE: Build Strategic Project Charters

Multiple resources are typically used to implement each strategic initiative. However it is essential that one individual have responsibility and accountability for each project & project charter.

The aggregate of strategic initiatives & associated charters represent the short term and long term implementation of the key strategies. Although they are prepared and managed by different individuals, it is important that the approach is consistent. So just what does one include in a charter? Let’s take a deeper look.

Background

Description and facts related to the problem, opportunity or situation that the project is going to address. The background lays out the context of the charter; however the details of the charter are laid out in subsequent sections. The background should refer to discussions generated during the strategic planning session.

Key Challenges

In every endeavor there are generally challenges. This section provides a description of the challenges, obstacles and issues that must be overcome in order to successfully complete the charter (project) and to deliver the benefits. This is not a description of the tasks, even though carrying out the tasks may be challenging.

Project Overview and Rationale

Description of what the project will accomplish at a high level, and a list of the project objectives and business benefits.

Brief example: The objective of this project is to develop and implement a new, automated sales order entry system. The new system should reduce the time to configure and enter a new order from 4 hours to approximately 20 minutes (objective). It will significantly reduce order entry errors, increase sales and improve customer satisfaction (benefits).

Approach

Description of how the project will be carried out: the team, methodology, and timeframe for carrying out the project. The description should be a high level and should not duplicate the list of milestones or major deliverables.

Scope:

Description of the boundaries of the project: what it will and will not address.

Major Milestones

Milestones should reflect the overall approach and should cover the complete lifecycle of the project. The list of milestones does not however constitute a complete project plan. Milestones will be changed and should be updated when the project plan is completed.

Start Date: xx/xx/xxxx End Date: xx/xx/xxxx

First Major Milestone: xx/xx/xxxx

Major Action: xx/xx/xxxx

Middle Target Date xx/xx/xxxx

Major Action: xx/xx/xxxx
Major Action: xx/xx/xxxx

Milestone close to completion: xx/xx/xxxx

Major Deliverables:

List of specific accomplishments, documents, or other tangible outputs of the project. Deliverables are not the same as objectives or business benefits. The deliverables may duplicate some of the major milestones (i.e., the completion of a deliverable could be a milestone.)

Stakeholders and Resources

Customer: [Group that will directly benefit from this project. Could be an internal or external customer or stakeholder group. Be specific.]

Sponsor: [Executive who has overall responsibility for the project. Approves the charter and budget. Heads up Steering Committee as needed.]

Project Manager: [Manager with responsibility for the leadership and day-to-day management of the project.]

Outside Resources: [As needed.]
Team Members: [Resources assigned to the project who will participate throughout the project. Do not include SMEs (subject matter experts) or other resources that work on specific tasks or are consulted with during the project.]

Project Budget

Training materials: $ X

Marketing materials: $ Y

Outside resources: $ Z

Assumptions, Constraints and Concerns

Assumptions:

[Events or conditions that must be in place in order for the project to start or to be completed.]
E.g. new marketing manager must be hired and in place by no later than 6/1.

Constraints:

[Limitations that the project must adhere to.]

Concerns:

[Events or conditions that may occur, that would impact the successful completion of the project.]
E.g., If the pending acquisition closes before 7/31, some of our team resources may be pulled into the integration effort.

The assumptions, constraints and concerns must be specific to the project – not conditions that are necessary for any project. Examples of conditions that should not be listed are:

Having adequate budget, resources and strong support from leadership. (True for any project.)
No major economics or business disruptions. (True for any project.)

FOUR: Monitor & Communicate Progress

Many organizations struggle with the implementation of key initiatives; accountability is frequently a major stumbling block. By assigning Project Managers and the consistent use of project chartering, project plans can be well defined, resourced and monitored. The aggregate results of the charters collectively address the implementation of defined key initiatives. It is customary that on a weekly basis, each Project Manager reports the status of their charter so that combined project plans are managed by a single source. That is, for quality and consistency the overall progress of the initiatives is maintained in a central repository accessible to the entire management & leadership team.

There are many ways to distill strategic planning into execution. Chartering is a great way to focus on execution while creating accountability & buy-in throughout the process.

David Shaffer, MBA , Sr. Consultant, is our practice head for our Business Consulting For Higher Productivity Division and for our ERP and M&A practice. He is recognized for his ability to effectively integrate all aspects of the business, including financial management, information systems, infrastructure, sales management, sales strategies, and operations. David assists companies from planning through operational and business process improvement opportunities to the selection and integration of management information systems solutions. His range of company support includes start-ups through Fortune 500 firms.

Lighthouse Consulting Partners, LLC Divisions

Testing Division provides a variety of services, including in-depth work style & personality assessments for new hires & staff development. LCP can test in 19 different languages, skills testing, domestic and international interpersonal coaching and offer a variety of workshops – team building, interpersonal communication.

Business Consulting for Higher Productivity Division provides stress & time management workshops, sales & customer service training and negotiation skills, leadership training, market research, staff planning, operations, ERP/MRP selection and implementation, refining a remote work force, M&A including due diligence – success planning – value creation and much more.

To order the books, “Cracking the Personality Code”, “Cracking the Business Code” and “Cracking the High-Performance Team Code”, please go to www.lighthouseconsulting.com.

Five Ways To Increase Value For A Merger, Acquisition, Or Succession

By David Shaffer MBA , Sr. Consultant, Practice Head for M&A and ERP/MRP

We recently did an Open Line on this topic with David, so please click on the link for the slides/audio:
Keeping on Track Open Line – M & A and Succession Planning – 5 Top Things to Consider with guest, David Shaffer.
Please click on the website link or copy/paste the full link into your internet browser: https://recordings.join.me/IyY5elXeoEGX8niO7Cw5-g

Does your business serve you or do you serve your business?

“Once you recognize that the purpose of your life is not to serve your business, but that the primary purpose of your business is to serve your life, you can then go to work on your business, rather than in it, with a full understanding of why it is absolutely necessary for you to do so.”

Those are the words of bestselling business author Michael E. Gerber, who wrote The E-Myth Revisited.

For the better part of 40 years, Gerber has been encouraging business owners to work “on, not in” their business. Gerber firmly believes every company should be built as a product to sell.

Are you building a business you can sell? More important, are you optimizing the value of that business for a sale, merger, or succession plan?

What Is Your Current State Of Mind?

Which of the following statements best describes your current state of mind as the business owner:

• I have been working in my business for many years and I am ready to explore alternatives.
• I had hoped that my family would continue the legacy but there is little interest.
• I struggle with balancing the cash flow and need capital infusion to keep going.
• My team continues to point to having to upgrade my use of information systems
• My key team members are in the same age bracket as me and not certain they can move into leadership.
• My competitors are constantly focusing on their growth and my opportunities are being pressured to reduce margins.

For some business owners, all six of the above statements apply to their situation.

Five Action Steps To Assess Your Current Situation And Start Toward Value Creation

The following five action steps are designed to help you assess your situation. The steps also provide an outline for making your business more valuable.

Step One. Review, update, or create a strategic business plan that well defines your business.

By JESHOOTS.COM

Do you have a strategic plan that well defines your business? Because any potential buyer is going to want to see what is the business, what is the mission, what are the vision, what are the values of that business.

Do a detailed SWOT (strength, weakness, opportunities and threats) analysis so that it’s well defined. Outline the structure or organization that is in place that you can show a potential buyer. Or, analyze internally how you can extricate yourself from the business.

Step Two. Review your financial reporting to assure a proper representation of cash management.

The second step, which is critical, is your financial reporting. Are you able to provide accurate historical financial reporting? Can you determine your EBITDA, which is your bottom-line profitability?

When I value a business, I look at the EBITDA, which is the earnings before interest, tax, depreciation, and amortization (that funny money that helps you pay less in taxes). When interest, taxes, depreciation, and amortization are removed it becomes the true bottom line.

Within each industry there is multiple of earnings defined by the industry to calculate business value. The more you have exclusivity within the industry, the higher the multiple. You multiply those two numbers together and it gives you a good idea of the value of the business.

Step Three. Complete an objective assessment of your organization.

Can you explain to potential buyers your mission and vision? Do you have clear goals, objectives, systems, and policies?

When we go in to work with a client, we assess where they are today, what they’re looking to achieve in the longer term, and then where do the gaps exist. Following that we work with the company to put in place the appropriate steps to close the gap and create more value.

Step Four. Assess your role as business owner.

When we work a business, next we ask the owner to really take a look at themselves and where are they as far as key responsibilities. Do they have a transition plan to move out of the business? Are they communicating internally to keep personnel?
One of the things I see a lot in an acquisition is when a buyer says to the owner selling the business that it appears to be very dependent upon you. Then they say, “We’re going to put in place a three-year plan where over a three year period we’re going to buy out your business, but you need to be around for three years and hit certain objectives.

Well, if you’re a driven type personality and you’ve been successfully running your business for years, the last thing you want is someone externally telling you how to run your business.

That’s why we work with owners to extricate themselves from the business before the sale. That way they do not have to stick around as an employee for several years.

Step Five. Engage with experienced support team.

By Nick Fewings

Getting ready for a sale, merger or succession plan is not something for the do-it-yourselfer. This is probably a once in a lifetime transaction for you. This is the time to do some due diligence and get a team of trusted advisors on your side.

The trusted advisors you engage should have experience both on the operations and financial side. The objective, regardless of the exit path you choose, is to create value in the business. In many acquisitions there are tax ramifications, shelters, and potential benefits. The use of a qualified tax advisor will help uncover both opportunities and potential liabilities. Engaging a firm to complete financial due diligence and identify target markets reduces time and helps create a realistic value proposition.

Indeed, if Gerber is correct and your business is a product to be sold, you should work on the business, so you realize the best price. Here is a case in point about family business owners who sought help.

More Cash Flow And Time To Enjoy Life

Once I worked with a family-owned business and both principals were about to turn 60. They were at a crossroads as business owners. The dilemma was; should they stay or should they go?

This couple were the overstressed owners of a privately owned manufacturing company. When I was introduced to them they were looking to make changes in their internal information systems from a very archaic system to a new one.

I was brought in to work as a conduit between the owners and their operational team and the software firm. Because of my background in manufacturing operations and systems, I was very much involved in helping with the implementation, project management. and delivery of that information system.

However, further exploration and understanding of the business demonstrated that there was more than the existence of an archaic system problem. What we determined is that the information systems brought with it a need to align the organization and the best practices because the ownership was considering two options.

Option one was to sell the business, and option two was to retain the business. Neither option sounded attractive.

Both owners were heavily involved in day-to-day operations. Collectively they were involved in the manufacturing and delivering of products and overseeing the sales team as well as overseeing all of the human resources and finances of the company.

By PublicCo

Through the work that I did outside of the systems, we restructured the entire organization where we brought in interim sales management. We took one of the key operation people, promoted him to chief operating officer, put in place a dotted line between him and the sales team.

We brought in and developed a key accounting person to oversee all of the receivables, payables, and general ledger. Then we put together an advisory team that included myself with the owners. And through the implementation of the new system, we put in place dashboards to monitor the management of the system.

The net result was we increased the value of the company by 10% in the first year simply by having visibility into the profitability of the company. We had no need other than to bring in an interim sales manager to increase our expenses on personnel. We uncovered that their sales team was really one of customer service as opposed to new account sales.

We were able to reduce the outside sales team by two individuals, which represented 60% of their sales team. We added in customer service in-house at a far less expense. The whole process took 20 months.

The moral of the story: the owners now have more cash flow and time to enjoy life. The were able to purchase a second home outside of the state. They travel on a regular basis. Recently they sent me an email saying that they were on a two-week vacation and the company is running.

Now they are also entertaining a potential sale. But at this stage, they are less stressed over the sale because they know they’re making money and they’re not involved on the day-to-day operations of the business.

Conclusion

Whether the decision is to sell the business or retain, the creation of value is always a benefit. Whether it stays with ownership or enhances the sales, it is a cornerstone best practice.

If you are open to a conversation about mergers and succession, improving manufacturing workflow or if you are a service company taking a look at various ways to improve efficiencies, or how our in-depth work style and personality assessment could help to hire the right person and understand how to best work with the candidate from day one as well as gaining insights of your team, please contact us at 310-453-6556, extension 410.

If you would like additional information on this topic or others, please contact Lighthouse Consulting Partners LLC, Santa Monica, CA, (310) 453-6556, pattyc@lighthouseconsulting.com & our website: www.lighthouseconsulting.com.

Lighthouse Consulting Partners, LLC Divisions

To order the books, “Cracking the Personality Code”, “Cracking the Business Code” and “Cracking the High-Performance Team Code”, please go to www.lighthouseconsulting.com.

The Power of 360 Assessments In the Evolving Workplace

By Patty Crabtree, Sr. Consultant

Back in math class, you learned 360 degrees meant to go full circle, a whole circuit, the complete cycle, or a literal round trip. In other words, to circle around to get a full view. In today’s evolving workplace, leaders are taking a complete new full look at the 360 assessments.

by Gerd Altmann

Beginning in the 1990s, the natural desire to improve the performance of leaders through feedback gave rise to the popularity of 360 assessments. The objective was using these assessments is to create high-performing organizations by tapping into the collective feedback of many colleagues, rather than just a top-down approach.

In today’s evolving hybrid work environment, 360 assessments can be an important tool. The fundamentals of remote interactions are different than having everyone in the office. Attaining meaningful feedback regarding interpersonal interactions can help guide a company leadership and overall team training. Meaningful dialogues can lead to individual and company development plans that support the desired growth and success.

That is the power; however, there is a danger. The amount and level of training of those providing 360 assessment feedback can impact the level of accuracy of the feedback. There can also be a lack of follow through with the feedback. Without guidance from a trained professional, bias may distort the value of the feedback.

But there is a way to avoid this feedback peril.

Why The Waning Effectiveness?

Naturally to some degree people are resistant to feedback. We all have defenses against feedback, so the process needs to be mediated by someone who is trained to do this.

Before using 360 assessment assessments, some people are curious about the origins of the approach. It all began around 1930 when military psychologist Johann Baptist Rieffert developed a methodology to select officer candidates for the German army.

by Dorothe

The jump to the business world occurred in the 1950s when the Esso Research and Engineering Company gathered information on employees, which arguably is the first recorded business use of the technique.

Also called multi-rater assessments, 360 assessment feedback is a process through which feedback is gathered from an employee’s supervisors, subordinates, and colleagues, as well as a self-evaluation by the employee themselves. The 360 assessments can be contrasted with downward feedback from the boss or upward feedback delivered to managers by staff.

Over the years, 360 assessments have lost some of its effectiveness. This is due to many factors. Automation has taken away from the meaningful aspect of the feedback. A lack of creating development plans and holding others accountable to their growth commitments has lessen the impact. Follow through on growth commitments wane as other priorities take over. These assessments have become routine and just part of the process.

A worst-case scenario is to just grab some 360 assessment tool from the Internet and let the recipients interpret the feedback from the various people on their own. Looking for the cheap option does not make it the best approach.

360 assessments, done in an effective and meaningful way, can be a powerful tool for development. Being curious about the feedback as opposed to just gathering the data can elicit more opportunities for growth.

An automated approach limits the opportunity for this curiosity. Many automated systems will have options to rate multiple factors on a scale of 1-5, which is typically done anonymously. People can be skeptical of the anonymity and will give high ratings or incomplete feedback fearing potential backlash or just wanting to check this process off their list. They don’t see change from the effort of providing worthwhile feedback so there can be ambivalence to the process.

The Return of the 360 Assessment Gift

Feedback is a powerful growth tool. Understanding how others view your performance and your impact on those around you can make your stronger. Feedback is truly a gift.

Recently, one growing company decided to perform a 360 assessment on their senior leadership. They had weathered the pandemic, implementing some hybrid positions and were seeing a post-pandemic rebound. Their first reaction was to take operations back to the way it was done prior to 2020. This is what they knew, what was comfortable and a quick response to meet the client needs. It caused some conflict as staff were looking to continue the new ways. On top of this, they also faced a change in senior leadership as a retirement occurred.

by Headway

They wanted to take embrace the evolution, but leadership had some blind spots. They needed to know if they were ready for everything coming their way and decided to get a better understanding of how leadership was being viewed.

Using the 360 assessments, a picture was painted showing the strengths of the team along with opportunities to grow their leadership skills. There was an opportunity to embrace the changes the pandemic brought and enhance communication. The leaders listened to the feedback and heard the messages shared.

They created a developmental plan to strengthen the areas where staff felt some growth needed. Leaders saw how they were holding back the company’s momentum by not embracing the lessons learned over the past few years. They also understood how they needed to step up communication to ensure everyone felt included and were clear on the company’s vision. The lessons of a hybrid work environment became a larger part of their culture.

We also worked with them to keep the conversation alive and provide tools for the leaders to meet their goals. By using a professional coach, leaders had a safe environment to share their successes and struggles and discuss new ways to embrace the opportunities.

Avoid the Misuse of the 360 Assessment

Any tool can be used for good or for harm.

Some people see 360 assessment feedback as punitive and unproductive. This comes from how companies use this tool. It is not a process to check off the list but an opportunity to have thoughtful feedback that can support growth and change.

by Jason Goodman

Lighthouse Consulting uses an interview style and collaborative approach to the assessment. We partner with the organization to help ensure the feedback is effective and inspires change. We have conversations with the participants to elicit meaningful feedback and cultivate a deeper understanding of the individual’s strengths and opportunities. Follow up questions happen in the moment that supports a more effective discussion of their observations.

Debriefing with each client helps manage the potential emotional response to the feedback. This partnering method puts the focus on the opportunities and empowers the leaders toward growth. This partnership continues through coaching to achieve the desired goals.

When successfully implemented, 360 assessment feedback can be a game-changer for a business. This process can initiate positive changes and provide more accurate performance evaluations leading to accelerated professional growth.

When professionally conducted, interpreted and coached, the results can be significant. Without a trained professional, the value of their results can be diluted and meaningful change lost in the process.”

If you are open to a conversation about the 360 assessment process or how our in-depth work style and personality assessment could help your team, including pricing and the science behind the tests, please contact us at 310-453-6556, extension 403.

Patty Crabtree is a Senior Consultant at Lighthouse Consulting Services with 25 years of operations and finance leadership experience.

Lighthouse Consulting Services, LLC Divisions

Testing Division provides a variety of services, including in-depth work style & personality assessments for new hires & staff development. LCS can test in 19 different languages, skills testing, domestic and international interpersonal coaching and offer a variety of workshops – team building, interpersonal communication.

To order the books, “Cracking the Personality Code”, “Cracking the Business Code” and “Cracking the High-Performance Team Code”, please go to www.lighthouseconsulting.com.

If you would like additional information on this topic or others, please contact your Human Resources department or Lighthouse Consulting Services LLC, Santa Monica, CA, (310) 453-6556, dana@lighthouseconsulting.com & our website: www.lighthouseconsulting.com.

Being Planfully Minded For 2025

By Paul David Walker, CEO Genius Stone Partners

Now is the time for business leaders to get centered for 2024.

by Milada Vigerova

In my book Invent Your Future, I shared that knowing how to invent the future was a strategic advantage in simpler economic eras. Now, you need this knowledge to survive.

Five Steps To Plan For The Coming Year

Back in the 1990s folk singer Pete Seeger turned some advice from wise King Solomon into a song called “Turn, Turn, Turn.” The lyrics say to everything there is a season, a time to plant, a time to reap, a time to cast away stones, and a time to gather stones together.

If you believe it is the time to plan, then how do you best do it?

Step One. Define The Future. Start by articulating what you want your business to accomplish. What are your goals? Having a facilitator to help you guide these discussions is highly beneficial.

Step Two: Work Backwards. Once you understand that, then work backward to determine what you need to do to achieve those goals. Ask your leadership team questions like: How important are those goals? How will they add value to our business? A business leader should ask, how will they bring value to my life?

Step Three: Build Your Roadmap. Once you have the destination, then build a roadmap for getting there. What are the major mileposts you need to reach month by month and quarter by quarter?

by Planète Chocolat

Step Four: Align Your Team. Next, you need to align your team around your strategy and goals. Don’t just assume they’re going to follow the roadmap. You really need to talk with them so they understand why it’s important to them, why it’s important to the company, why it’s important to you as a leader, and be ready to execute given the dynamics that are likely to come.

Step Five: Monitor The Horizon. The other activity I recommend for business leaders is to read The Wall Street Journal and all the business press that predicts what’s going to happen in the economy and your industry. The media is not always right, but it gives you some idea as to how the economic winds are blowing. Trust me, it pays to be aware of what people are thinking and what they’re doing in your industry so that you can be on top of your game.

Now is the time for business leaders to plan.

Each insight is a flash of seeing into the true nature of things, and leads to another, providing you act on the first, if you don’t the spark dies, and an opportunity is missed. Being in “the zone,” simply described is one insight after another, acted upon in the flow of cause and effect. It is like dancing in perfect harmony with a band. Dancing to the rhythm and flow of the moment brings out our souls’ calling, and our natural genius, both of which have yearned to be expressed most of our lives.

As insight expands it can create momentum and turn into a compelling vortex that draws energy like a giant storm draws air. There is an attraction that brings in all manner of opportunities as the worlds, near and far, see a familiar intent and join an energy field that feels like their tribe; like going home again.

The key to creating a chain response of insights is our ability to act in the moment before the flash of insight fades. A professional athlete has the muscle memory from years of practice in a given sport to respond in this manner. But can business teams do the same? Why not, most have years of experience in their business. It is a matter of practicing the art of connecting insight to action as a basketball player responding during the flow of the game. A team of athletes has to practice so that when opportunity presents itself it is ready to act as a team in a fast break. Likewise a business team needs to do the same.

Knowing The Difference

An insight is a combination of two or more ideas merging to create a reality previously unknown. It has an expansive, curious, and inclusive feeling, even if stimulated by reading a poem, or seeing a painting. The observer and the observed becoming one to uncover new realities, paths, and understandings.

When ideas come from stored memory they seem to be cloaked with a “need to be right,” which prevents merging and expansion. It is like pulling the answer out of the internet or our past, the feeling lacks wonder, unlike a true insight. Only with practice do we learn the difference, but do not underestimate the tricks our egos can play on us.

First We Become a Team

The first step is becoming a team committed to each others’ success that knows each person’s strengths, weaknesses and potential. Each member of the team is committed to helping unleash each team player’s potential, the potential of the team, and business. This creates a safe field for innovation and exploration. Each understands and have expertise in their roles, and those roles synchronize to form a team ready to build on insight and act upon opportunities uncovered. This is a healthy high performance team.

Stimulate Insight

Once you have a strong team, as described above, it is time to stimulate insight and action. To do this the leader and the team has to question the status quo, and collaborate to understand new realities, then act on solutions that lead to manifestation. One of the CEO’s I work with, Celso Pierre CEO of Goodridge Americas, developed the following values for his team.

by pexels

We Work Together To …

• Bring a sense of possibility beyond the status quo
• Examine possibilities until solutions emerge
• Align our intentions to drive solutions

As this example illustrates, a clear compelling picture of the desired state is important. It is an aspirational statement that provides an understanding and a draw towards the ideal. A picture of the goal creates insight as we succeed or fail that is self-correcting in a positive manner. Insights that uncover hidden realities that are successfully acted upon create engagement. The purpose is for you and/or your team, as observer of the ideal, to become one with it, then create a new ideal.

The assumption that fuels insight, is understanding that there is no limit to what we can create together. As an individual I find that if I capture insights as they occur, not letting them fade, and take action, even deeper insights emerge. To facilitate this I always have my journal at hand to capture, understand and expand insights before the clarity fades. I allow time in my schedule to reflect. Likewise a team should have time as individuals and a team to reflect with the purpose of discovering “possibility beyond the status quo.” Business leaders who make this a priority tend to lead their sectors.

The Habit of Reflection

After a success it is easy for us to fall back into old patterns, as individuals and teams. So it is important that personal, professional and business growth is the default setting. Insight into the true nature of things followed by action invents futures that provide strategic advantage. To win consistently we have to teach each other, and those that follow us how to create a state of mind around insight that is similar to athletes “in the zone.” Each time I learn something my state of mind is lifted and I become committed to new levels of action. The same is true with teams. When creating insight is a natural habit, higher states of mind will drive intent and performance at all levels.

“Here you will find a treasure trove of distinctions, tools, and models that will allow you to engage people in a way that naturally harmonizes and enhances working with others—and that in turn advances the mission and purpose of the organization. More than that, you will be introduced to the thinking that guides and directs our most advanced leaders. There are years of learning available in Invent Your Future. Do not be surprised when, in the days and months to come, you find yourself referencing this book. It’s that good.” —John King, Bestselling Author of Tribal Leadership

Paul David Walker, CEO of Genius Stone Partners works with domestic and international companies to improve their bottom line today and plan for the future. He works with the CEOs, founders, boards, and executive teams to accelerate the performance of their business, the growth of their leaders, and the health and well-being of their organizational culture. He has been a business leadership adviser to the CEOs of Fortune 500 and midsize companies for over 30 years. He is the author of four books, including Invent Your Future and Unleashing Genius.

Lighthouse Consulting Partners, LLC

To order the books, “Cracking the Personality Code”, “Cracking the Business Code” and “Cracking the High-Performance Team Code”, please go to www.lighthouseconsulting.com.

If you would like additional information on this topic or others, please contact Lighthouse Consulting Partners LLC, Santa Monica, CA, (310) 453-6556, extension 410, pattyc@lighthouseconsulting.com & our website: www.lighthouseconsulting.com.

Now is the Time to Prepare for the Uptick In 2025: Leveraging Opportunity & Setting Your Direction

By David Shaffer, MBA, Sr. Consultant

News item: Economists, investors and the Federal Reserve have sounded alarm bells for months that a recession could come later this year. According to CNN, here are predictions from three financial institutions:

by Thomas Breher

• Bank of America CEO Brian Moynihan told CNN that he believes the US economy could tip into a recession early next year.
• Vanguard economists wrote in their mid-year outlook that they see a high probability of recession, and the “odds have risen that it could be delayed from 2023 to 2024.”
• JPMorgan Chase economists said that there could be a “synchronized global downturn sometime in 2024.”

Investors and economists last year predicted that the US could enter a recession in early 2023, after the Fed set out on its aggressive interest rate hiking campaign to tame inflation.

As we enter the fourth quarter of 2023, most organizations turn their attention to reviewing the success/issues of the current year and try to determine the appropriate focus for the upcoming year and beyond.

With uncertainty comes opportunity if a company can define strategies that incorporate its strengths and recognizes its weaknesses.

With political uncertainty and the rebound from Covid-19, this year more than ever companies are looking into the mirror to see how best to position for uncertainty. This becomes the element of strategic planning that focuses on a realistic assessment of the current environment and a projection of what an optimal future target operating model should look like.

The process of strategic planning we recommend provides an initial, objective assessment and facilitates the strategic planning necessary to meet future opportunities. This planning should focus on the definition and implementation of critical initiatives that project alternatives based upon projected potential scenarios.

What differentiates us is our ability to recognize the resources available, integrate financial scenarios, and develop a process that provides well-defined milestones and deliverables. The planning is designed to leverage the businesses’ capabilities into value creation thereby creating future options for stakeholders and owners.

Most companies schedule their management retreat to develop and establish the strategic direction for the remainder of the year, as well as a three-to-five-year outlook.

The process, although it can contribute to team building by getting away from the daily grind, frequently does not result in strategy. That’s because what starts as a noble intention or cause ends with little to no accountability, letting life return to normal soon after the planning meeting. Effective strategic planning implementation requires accountability both in the creation and management of strategic initiatives.

Here is practical and accountable approach to effective strategic planning and implementation:

by Mario Aranda

Step One. Develop Strategic Initiatives. Many times there is confusion between what initiatives are truly strategic versus what are simply tasks and obstacles that impact the daily operating procedure.

As an example of what not to do: one company identified distribution of various financial reports as a strategic means of raising financial performance. Although the concept may sound strategic it is merely an improvement in task execution, addressing an operational issue rather than a strategy that aligns with the direction of the company.

Here is what you should do: Your strategic planning session should generate and classify two types of initiatives.

1. A few critical initiatives expected to be implemented in the short term, within the current fiscal year
2. A few growth initiatives, requiring more exploration in order to lay the foundation for future critical initiative consideration.

Organizations that define more than five to six critical initiatives are generally focused on task implementation rather than strategy. Likewise, exploration of more than two to three growth initiatives represents a strategic planning outcome that has no direction or focus.

Step Two. Assign Accountability. Once both critical and growth initiatives have been defined, individual project managers should be assigned to lead the charge, plan the implementation, drive the process and communicate the results. The use of chartering is a process commonly used by project managers that allows organizations to clearly convert strategy into action while managing accountability.

For each strategic initiative a charter is written, reported against and reviewed regularly by the management team. It is important to note that as a result of exploration efforts, growth initiatives can often become new critical initiatives that require project managers and charters.

Step Three. Build Strategic Project Charters. Multiple resources are typically used to implement each strategic initiative. However, it is essential that one individual have responsibility and accountability for each project and project charter.

The aggregate of strategic initiatives and associated charters represent the short term and long-term implementation of the key strategies. Although they are prepared and managed by different individuals, it is important that the approach is consistent.

So just what does one include in a charter? Let’s take a deeper look:

Background. Description and facts related to the problem, opportunity or situation that the project is going to address. The background lays out the context of the charter; however the details of the charter are laid out in subsequent sections. The background should refer to discussions generated during the strategic planning session.

by Skeeze

Key Challenges. In every endeavor there are generally challenges. This section provides a description of the challenges, obstacles and issues that must be overcome in order to successfully complete the charter (project) and to deliver the benefits. This is not a description of the tasks, even though carrying out the tasks may be challenging.

Project Overview And Rationale Description of what the project will accomplish at a high level, and a list of the project objectives and business benefits.
Brief example: The objective of this project is to develop and implement a new, automated sales order entry system. The new system should reduce the time to configure and enter a new order from four hours to approximately 20 minutes (objective). It will significantly reduce order entry errors, increase sales and improve customer satisfaction (benefits).

Approach. Description of how the project will be carried out: the team, methodology, and timeframe for carrying out the project. The description should be a high level and should not duplicate the list of milestones or major deliverables.

Scope. Description of the boundaries of the project: what it will and will not address.

Major Milestones. Milestones should reflect the overall approach and should cover the complete lifecycle of the project. The list of milestones does not however constitute a complete project plan. Milestones will be changed and should be updated when the project plan is completed.

Start Date: xx/xx/xxxx End Date: xx/xx/xxxx
First Major Milestone: xx/xx/xxxx
• Major Action: xx/xx/xxxx

Middle Target Date xx/xx/xxxx
• Major Action: xx/xx/xxxx
• Major Action: xx/xx/xxxx

Milestone close to completion: xx/xx/xxxx

Major Deliverables. List of specific accomplishments, documents, or other tangible outputs of the project. Deliverables are not the same as objectives or business benefits. The deliverables may duplicate some of the major milestones (i.e., the completion of a deliverable could be a milestone.)

Stakeholders and Resources

• Customer: [Group that will directly benefit from this project. Could be an internal or external customer or stakeholder group. Be specific.]
• Sponsor: [Executive who has overall responsibility for the project. Approves the charter and budget. Heads up Steering Committee as needed.]
• Project Manager: [Manager with responsibility for the leadership and day-to-day management of the project.]
• Outside Resources: [As needed.]
• Team Members: [Resources assigned to the project who will participate throughout the project. Do not include SMEs (subject matter experts) or other resources that work on specific tasks or are consulted with during the project.]

Project Budget:

Training materials: $ X
Marketing materials: $ Y
Outside resources: $ Z

Assumptions, Constraints and Concerns

Business Consulting Services from Lighthouse Consulting

by rawpixel

Assumptions:

• [Events or conditions that must be in place in order for the project to start or to be completed.]
• E.g. new marketing manager must be hired and in place by no later than 6/1.

Constraints:

• [Limitations that the project must adhere to.]

Concerns:

• [Events or conditions that may occur, that would impact the successful completion of the project.]
• E.g., If the pending acquisition closes before 7/31, some of our team resources may be pulled into the integration effort.

The assumptions, constraints and concerns must be specific to the project – not conditions that are necessary for any project. Examples of conditions that should not be listed are:

• Having adequate budget, resources and strong support from leadership. (True for any project.)
• No major economics or business disruptions. (True for any project.)

Step Four. Monitor And Communicate Progress. Many organizations struggle with the implementation of key initiatives; accountability is frequently a major stumbling block. By assigning Project Managers and the consistent use of project chartering, project plans can be well defined, resourced and monitored. The aggregate results of the charters collectively address the implementation of defined key initiatives. It is customary that on a weekly basis, each Project Manager reports the status of their charter so that combined project plans are managed by a single source. That is, for quality and consistency the overall progress of the initiatives is maintained in a central repository accessible to the entire management & leadership team.

There are many ways to distill strategic planning into execution. Chartering is a great way to focus on execution while creating accountability and buy-in throughout the process.

by Hans

The Economic Outlook For An Uptick In 2025 To 2030

The US Congressional budget Office predicts the economy will continue to expand during the second half of the decade. Output should grow at an average annual rate of 2.1 percent over the 2025–2030 period—faster than the 1.8 percent average annual growth of potential output. The unemployment rate should continue to drift downward, reaching 4.4 percent by the end of 2030. Inflation should be stable during the 2025–2030 period.

If you are open to a conversation about how to develop your next strategic plan to prepare the recession and coming uptick, or how our in-depth work style and personality assessment could help your team, please contact us at 310-453-6556, extension 403 or email us at dana@lighthouseconsulting.com and our website is www.lighthouseconsulting.com.

Recent Open Line event on this Topic

We recently had an Open Line event on this topic with David Shaffer… to see the webinar, please click the link below:
Preparing for the 2024 Potentially Mild Recession & the Uptick In 2025 – Leveraging Opportunity And Setting Your Direction
https://lighthouseconsulting.com/openline/081723/OpenLine081723.mp4

David Shaffer is our practice head for our Business Consulting For Higher Productivity Division for our ERP, M&A and process improvement practice. He is recognized for his ability to effectively integrate all aspects of the business, including financial management, information systems, infrastructure, sales management, sales strategies, and operations. David assists companies from planning through operational and business process improvement opportunities to the selection and integration of management information systems solutions. His range of company support includes start-ups through Fortune 500 firms.

Lighthouse Consulting Partners, LLC

To order the books, “Cracking the Personality Code”, “Cracking the Business Code” and “Cracking the High-Performance Team Code”, please go to www.lighthouseconsulting.com.

Protecting The Workplace

By Howard F. Fisher, Esq.

What is keeping you up at night as you consider returning to the office?

Employers and employees are navigating a rapidly changing landscape of workplace safety concerns from policies touching on vaccine or mask requirements; potential of political or civil unrest; employee and guest vaccination status; remote or hybrid work, scenarios; and a full return to an in-person workplace environment that will look and feel very different than it was prior to the pandemic.

Further adding to the concerns is the unfortunate situation where employees may have experienced economic difficulties, increased domestic tension or other impacts that will increase the risk or opportunity for workplace violence to occur.

Employers Have a Duty To Provide a Safe Workplace

Employers must maintain “a place of employment which is free from recognized hazards that are causing or are likely to cause death or serious physical harm …”, according to OSHA/MOSHA requirements.

Failing to prevent workplace violence is expensive. The human cost of workplace violent acts is immeasurable. The financial impact can cripple a business. Medical bills covering physical and psychological support for victims and witnesses, liability expenses, negligence lawsuits and physical site damage can be extensive.

As employees return to work, there has never been a better time to review physical security as well as workplace violence prevention policies.

Understanding the gaps in your organization’s physical and technical security is a critical first step in prevention-focused security risk management. Workplace violence prevention programs cannot and should not only protect employees as they face these situations, but also prevent a perpetrator from committing violent acts in their own or their victim’s workplace and includes but is not limited to physical violence, threats or threatening behavior communicated through verbal, written, electronic or physical means.

Physical And Technical Security Assessment

Employers should consider an independent assessment of security gaps for their facilities. Assessments may include one or several facility types to allow for a holistic assessment of overall gaps. Facility types may include multi-tenant Class-A office buildings, corporate headquarters or integrated complexes, mixed-use properties, retail and shopping centers, event halls, embassies, data centers and critical infrastructure sites.

The strategic scope of the assessment should cover factors such as risk, threat and vulnerability profile; geography and local environment; criticality of operations; sensitivity of information used, stored or generated; size of facility and number of personnel; regulatory mandates; and internal risk criteria.

The tactical scope of the assessment should focus on factors such as perimeter alarm systems; access control systems; closed-circuit television coverage; intrusion detection systems; fire and life safety systems; emergency plans; mail and package delivery; and backup power availability and adequacy.

Work-Place Violence Prevention Policy Assessment

As an employer, you have a legal duty to take reasonable steps to respond and intervene when the reported actions of an individual or group threaten your workplace. The goal of a workplace violence prevention program is to enhance employee safety and identify opportunities for early intervention to assist employees who may be in crisis.

When some people think of workplace violence prevention programs, they imagine acts of violence and punitive zero tolerance policies. But a properly developed and effectively implemented program prioritizes prevention and creates an environment of trust, respect and courtesy, so when issues arise anywhere (including in the home) employees feel comfortable bringing them forward.

Employers should examine existing policies in critical areas such as onboarding, employment screening, privacy, compliance and issue resolution and escalation. assess their current programs with the goal of creating a security roadmap that:

• Gains a baseline understanding of the strengths and weaknesses in current policy.
• Advances the company’s ability to prevent, mitigate and respond to incidents.
• Incorporates threat assessment into your plan.
• Factors in best practices in emergency preparedness planning.
• Views the company’s security risk management program holistically.

Assessments will identify gaps and opportunities for improvements and provide guidance on execution. The analysis should include key functions and departments such as Security, HR, Operations, Legal, Employee Assistance Program (EAP) and line management.

Closing the Gaps In Workplace Security Has Long-Term Benefits

Employers today are tackling a spectrum of issues ranging from post-incident internal investigations and messaging to employee populations deeply concerned about their own safety, to formal workplace violence prevention program development and – very importantly – the broader framework and integrity of each company’s respective physical and technical security protocols and practices. Here are some resources as well as the link to the LCS Open Line event on the same topic:

Additional Resource Links

Lighthouse Consulting Services, LLC Open Line event
Advancing best practices in workplace violence prevention
https://lighthouseconsulting.com/openline/051922/OpenLine051922.mp4

Jensen Hughes Service Offerings
+ Workplace Violence Prevention
+ Security Assessments
+ Active Assailant Awareness and Response Training

Jensen Hughes Publications
+ Workplace Violence Prevention in the Automotive Industry
+ Creating a HR Services Workplace Violence Prevention Program
+ Improving Security while Workplaces are Empty

External Resources
+ US. Department of Labor: OSHA Workplace Violence page
+ Federal Bureau of Investigation: Active Shooter Resources page

Taking an all-in approach to workplace violence prevention is vital to protecting people, property, performance, and reputation. Aligning security and safety with strategic business issues such as production and profitability brings broad business benefits that include increased workplace security, higher employee morale, greater cross-functional collaboration and information sharing, and uninterrupted business operations.

Howard F. Fisher, Esq. a senior vice president with Jensen Hughes, advises on security risk consulting. He works with senior executives and their legal counsel who want to better manage security risk and emergency management. Jensen Hughes, a leading safety, security, and resiliency professional services firm, is a joint venture partner with Lighthouse Consulting Services LLC. Howard has held executive positions at several large professional services firms and corporations where he was entrusted with rapidly increasing responsibility for the strategic, operational, and financial performance of multiple teams.

Don’t read the horrible headlines about other businesses and think it will never happen to you. Hopefully you may never need their services, but isn’t an ounce of prevention worth looking into?

To learn more, click here: https://www.jensenhughes.com/services/security-risk-consulting

If you are open to a conversation about how to better manage security risk and emergency management, please contact howard.fisher@jensenhughes.com or 312.560.0336.

We strongly recommend you sign up with Howard to receive a 24-hour hotline number to call in an emergency. If a security or violence problem hit your business, who would you turn to? Sadly, workplace violence is becoming more commonplace. Obviously, this is not something you want to do at the last minute. When something happens that is not the time to scramble for help. Having the 24-hour hotline number to call can give you a measure of peace of mind.

Lighthouse Consulting Services, LLC provides a variety of services, including in-depth work style and personality assessments for new hires and staff development. Lighthouse Consulting Services, LLC can test in 19 different languages, provide domestic and international interpersonal coaching and offer a variety of workshops on team building, interpersonal communication, and stress management.

To order the books, Cracking the Personality Code, Cracking the Business Code, and Cracking the High-Performance Team Code, please go to: www.lighthouseconsulting.com.

First Things First: Set Your Family Governance Plan for Success

Some Tips to Preserving Your Wealth, Your Family and Your Legacy

By Ken Ude

My lifetime business mentor taught me that if a business has a strong Mission Statement and defined Values, tough decisions become easier to make. A strong Mission Statement and defined Values become your moral compass. The same holds true for families. If you know who you are and what you stand for, family decisions become easier. In the process of discussing who you are what you stand for, the family unit becomes closer and more aligned. In working on a Plan to build your family’s foundation you become stronger as a family unit. This is particularly important for families of wealth.

THE POWER OF PUTTING IT IN WRITING

For the past 10 years PwC has done a worldwide survey approximately 500 family businesses to identify emerging trends. One of the findings of the 2021 PwC Family Business Survey was a strong correlation between defined and written values and overall business performance. Well defined and written values promote:

• Better performance. 58% of family businesses with values in a written form saw growth vs 52% Those family businesses that did not.
• More transparency. 77% of family businesses with values in a written form say information is shared in a transparent and timely way between family members, vs 54% for those that did not.
• More supportive staff. 54% of family businesses with values in a written form provide emotional/mental health support to staff, vs 39% for other family businesses.
• Better prepared for succession. 41% of family businesses with values in a written form have a robust, documented and communicated succession plan in place vs 20% for other family businesses.

I believe that wealth is relative. You don’t have to have a multimillion-dollar portfolio to have some of the challenges that come with wealth. If you have significantly more money that your prior generation you can run into some of the same issues many HNW families face: poor communications, lack of mutual trust, misunderstandings, entitlement, lack of motivation and not understanding the responsibility that comes with wealth.

Learn From Others: Build your personal network and learn from others by joining YPO, Vistage, FOX or other family business peer groups.

FAMILY SUCCESS: WHAT IS YOUR DEFINITION?

Where do you start to set your family up for success? It depends on your definition success and what you want your Family Legacy to look like. Some of the components of success that many families consider include:

• High functioning and motivated youth.
• The operating and/or investment businesses beating all benchmarks.
• Great stewards of the wealth.
• Good balance between business, family, community, faith and personal growth.
• Supportive communications.
• Family unity and having fun together.

Defining and creating a plan for success starts with a well-defined “business plan” for the family. A Plan that defines Mission, Vision and Values. A Plan that creates communications, transparency and governance. A Plan that addresses the purpose of the wealth and stewardship of the wealth. A Plan that educates and motivates the next generations to be entrepreneurial and to create additional wealth to extend you legacy. When you tie all of these topics into one document you have effectively created a Family Constitution.

WEALTH IS MORE THAN FINANCIAL: THE THREE CAPITAL ACCOUNTS

Before diving into the components of a Family Constitution, we need to consider the different aspects of wealth. Wealth is not just financial in nature. In his book Family Wealth, Keeping It in the Family, James Hughes, Jr, outlines that family wealth is more than financial. There are three different capital accounts: financial capital, intellectual capital and human capital.

• Human Capital: consist of the individuals who make up the family including effective parenting, communications, consensus building, conflict resolution, leadership training, values, morals, ethics, spirituality and goal setting.
• Intellectual Capital: is comprised of the knowledge gained through the life experience of each family member, or what each family member knows including education, career choices, coaching and mentoring, governance and the rights and roles of trustees and beneficiaries.
• Financial Capital: is the movable and immovable property that it owned. Financial capital allows the Human and Intellectual Capital to grow and flourish. Topics include creating wealth, managing and investing wealth, effective transfer strategies, financial parenting and understanding the psychology of money.

A legacy family understands and executes a Plan to build on each of these Capital Accounts. As you start to think about your constitution and governance structure you need to consider and make provisions to build each of these Capital Accounts within your family unit.

Ask the Following Questions … Often: Who, What, Where, When, Why, How, How Much

FAMILY CONSTITUTION & ESSENTIAL GOVERNANCE TOOLS:

The Constitution of the United States defines how the Country will operate. It is a concise statement of national principles that has evolved to meet the changing needs of a modern society. The preeminent book in creating a Family Constitution is The Legacy Family, by Lee Hausner and Douglas Freeman. They point out that “a very common step used by Legacy Families is the create of a Family Constitution, which formally sets the rules for the family’s governance, power sharing, communications and problem solving”. A Family Constitution normally includes some of the following topics:

• Mission Statement. The Mission Statement defines who your Family is and what it stands for.
• Values. What you believe is defined in your Values. Examples of family value statements can include:
– Honesty
– Humility
– Integrity
– Giving back
– Caring for others
– Empathy
– Faithful
• Vision Statement. If Forbes profiles your family’s journey 40 years from now … what do you want the headline and the message of the article to be? Were you good stewards of all of your Capital Accounts and leave a lasting Legacy, or did you come up short? An inspirational Vision Statement can become the North Star for your Family’s journey.
• Governance. Think about how your family is going to make decisions in the different areas of its journey. Who is going to decide what and in what manner? What areas do you want non-family members involved? Do you need an Investment Committee? Small families might not need a Family Council, where larger ones do. If there is an operating business, who oversees it and how? Who will be the next leader of the business and how does that transition occur? Does the Family Office need an advisory body? Who do these governance polices apply to? Your governance structure should reflect that families are dynamic as they grow and change. Allow for that to happen.
• Family Employment Policy. If you have an operating business or a family office a Family Employment Policy can be helpful. It defines under what conditions a family member can enter, be employed or exit the family business. Consider some of the following questions:
– What education is required?
– Does the candidate need to get outside experience before entering the business?
– Does there need to be a legitimate business reason for the position?
– Do they get paid the same as non-family members?
– How are promotions handled?
– Who do they report to?
– Can they get terminated?
– What family members do these policies apply to?
Wouldn’t it be nice to have all of the above defined and agreed upon in writing, before your brother calls and says that his son lost his job and is hopeful that you can give him one …
• Communications Plan. “If they don’t know the truth, they will make something up” … and it will become their truth, so it is better to get ahead of this train right at the beginning with open communications and transparency. People learn and digest information differently. Some are verbal learners. Some visual. Understand how the different members of your family absorb and process information and tailor your communications plan accordingly. Define who gets access to what information. At what age? At what level of detail? What about spouses and in-laws? Define the timing and cadence of the flow of information. What information do you want accessible daily, vs monthly, vs quarterly or for an Annual Report.

Model the Behavior that You Want Your NextGen to Have:
• If you want them to work. Go to work.
• If you want them to be healthy. Live a healthy lifestyle.
• If you want them to be humble. Be humble.

• Education Plan. Education is about helping family members become the best version of themselves as possible. This includes formal academic education, continuing education, retreats, seminars, motivation, inspiration. Define, in writing, what funding is available to whom, for what, and what is the expected outcome.
• Financial Literacy is really important. Not everyone is a ‘numbers person’ but to be a responsible owner I believe that every adult family member needs to be able to read and understand an Income Statement, Balance Sheet and Statement of Cash Flows. Moreover, they need to understand investment performance benchmarks to be able to access whether their operating company and their portfolio is performing to expectations. Building business and financial acumen should be an important part of the Communications and Education plan. Financial Intelligence, A Manager’s Guide to Knowing What the Numbers Really Medan by Karen Berman and Joe Knight does a good job of explaining numbers in a non-accounting way.
• Family Health. Most families make family health a priority and make resources available to support it. If it is also important to you define to what extent your family’s wealth will support. Covering health insurance premiums might be in the Plan, while paying for yoga classes might not be.
• The Family Bank can be used to spur NextGen entrepreneurial spirit. This is an interesting concept. Assume that the family business is in manufacturing, but someone in the NextGen has NO interest in manufacturing but does have an interest in restaurants. The Family Bank could be tapped into to secure a franchise so that the NextGen can learn if they really like the restaurant industry, or if it was a passing fade. There is one Orange County family that used their family bank to motivate the NextGen’s to learn about real estate and become real estate investors. Some of the ground rules of their bank was: a) The investment had to be in real estate. b) There had to be a formal business plan. c) The Plan had to be approved by the Family. d) The funding was in the form of a no-interest loan. e) The loan had to be paid back within 18 months. If these conditions were met, the father would make all of the resources of his company available to the project. You can guess that the father was a successful real estate developer an investor.
• Philanthropy and Giving Back. Your family plan may wish to address your desires and plan to give back.
• Family Fun. A family Governance and Communications program cannot be all work and no play. You need to weave some fun and team building into the program. Best in Class families create a series of:
– Family Meetings, to make sure the communications remain open and transparent.
– Family Retreats, that are a combination of business updates, personal development and fun.

Develop well planned Family Leadership Summits

HOW DO YOU START

This journey takes time, and it is important to get started. It can, however, very difficult to accomplish by yourself. Most families find it useful to engage a guide to help you navigate all of these topics before they become issues. It is important to understand that there are “Quantitative” issues and there are “Qualitative” issues. Most of the family business consultants and advisors are “Quants”. Most of the tougher issues to navigate are on the “Qual” side of the house. A balance of Quant and Qual is important since there is potentially so much at risk.

FINAL RECOMMENDATIONS

The 2021 Global Family Business Survey by PwC had the following recommendations for families to consider:

• Professionalize family governance. Having a professional governance structure and a clear process for conflict resolution, preferably involving an independent party, make business sense, particularly for a family business. A professional approach strips emotion and personal bias, common stumbling bocks for families, out of decisions.

• Governance should reflect that families are dynamic. Family businesses need to revisit governance structures regularly, because the structure of ownership can change as NextGens enter the business or through marriage. Therefore, it is important to set out parameters in a family constitution and keep them current.
• Write values down. A written accounting of a family business’s value helps with communications and transitions.
• Allow external help. Conflict and difference of opinion are inevitable – we’re only human. But the emotions involved in family discussions can be difficult to resolve internally. Many on the panel see the benefit of involving a neutral, outside perspective.

ADDITIONAL RESOURCES:

Here are some additional resources that I have found useful when thinking about creating a Family Constitution and Governance structure:

• The Legacy Family, The Definitive Guide to Creating a Successful Multigenerational Family, by Lee Hausner and Douglas Freeman.
• Family Wealth, Keeping It in the Family. How Family Members and Their Advisors Preserve Human, Intellectual and Financial Assets for Generations, by James Hughes, Jr.
• Your Business, Your Family, Your Legacy, Building a Multigenerational Family Business That Lasts, by George Isaac.
• How to Develop Your Family Mission Statement, by Stephen Covey
• Financial Intelligence, A Manager’s Guide to Knowing What the Numbers Really Mean, by Karen Berman and Joe Knight.
• Hats Off to You ~2, by Lee Hausner and Ernest Doud
• The Destructive Power of Family Wealth, Guide to Succession Planning, Asset Protection, Taxation and Wealth Management, by Philip Marcovici
• From Trust to Impact, Why family businesses need to act now to ensure their legacy tomorrow. Results of the 10th annual Global Family Business Survey by PwC.

Ken Ude’s career spans 40 years of running small to mid-sized private equity businesses as CEO/President before becoming Director of the USC Marshall School of Business Family Business Program. At USC he partnered with Lee Hausner, PhD, and George Isaac, two thought leaders in family businesses and family dynamics. The Mission of the USC Marshall Family Business Program was “To Create and Preserve Value by Increasing the Professionalism of the Business and the Effectiveness of the Family”. They did this through a series of workshops and programs focused on the dynamics of the entire family enterprise and system. Ken heads up the family business practice for Lighthouse Consulting Services, LLC. If you would like additional information, please reach out to Dana Borowka at 310-453-6556, ext. 403 or email Dana@lighthouseconsulting.com.

Lighthouse Consulting Services, LLC provides a variety of services, including in-depth work style & personality assessments for new hires & staff development. LCS can test in 19 different languages, provide domestic and international interpersonal coaching and offer a variety of workshops – team building, interpersonal communication, stress & time management, sales & customer service training and negotiation skills as well as our full-service Business Consulting Division. To order the books, “Cracking the Personality Code”, “Cracking the Business Code” and “Cracking the High-Performance Team Code”, please go to www.lighthouseconsulting.com.

Improving Your Odds For A Successful Manufacturing Workflow Strategy

By David Shaffer

When it comes to succeeding with manufacturing workflow, we are drowning in data but starved for wisdom.

That thought was first put forth by futurist John Naisbitt 40 years ago in his classic book Megatrends. Naisbitt the futurist was indeed a prophet.

His prophecy is true because today even with the ever-expanding use of technology, there is an overabundance of data. The challenge is to disseminate that data into information that can be acted upon to achieve the organization’s mission.

The overall mission and foundation of business today, as it was 40 years ago and undoubtedly will be true 40 years hence, is to maximize customer service. Today this is also referred to as the customer experience.

Great business thinkers like the late Peter Drucker said that without customers, there is no business. Giving the customers what they want, when they want it and how they want it is an ongoing challenge. Simply put, keeping the customer satisfied requires improved manufacturing workflow.

Because improving your manufacturing workflow is about keeping the customer satisfied, the best manufacturers are obsessed with it. These organization’s want to make themselves as easy as possible to work with from a supply chain, distribution and services standpoint. The good news is applications including Enterprise Resource Planning (ERP) have greatly improved manufacturing workflow.

However, almost daily you can read or hear of information systems like ERP not fulfilling manufacturing workflow expectations established at the time of acquisition. In fact, despite the most diligent efforts in defining requirements, evaluating options and selecting systems, the probability of higher-than-expected investments and system implementation issues are extremely high.

If it sounds like the odds are stacked against you, there are ways to improve your odds. ERP needs to be seen as an investment, rather than an expense, and therefore you must find ways to maximize the return on investment (ROI).

How To Improve ROI

Improving your manufacturing workplace is a bet, a gamble, a wager. Author Damon Runyon once said: “The race is not always to the swift nor the battle to the strong, but that’s the way to bet.”

No business plans to lose its bet on ERP. It is fair to assume that all participants in the implementation of technology are focused upon improved manufacturing workflow results for their individual and collective departments. The aggregate of these improved results should be focused on, and result in, improved results for the company as a whole.

Specifically, a concise definition of measuring improved results as a positive gain in the implementation of technology. If there is nothing to gain then there is obviously no reason to change.

If you want the biggest gain, bet on quality. To all organizations, quality is what is expected. To that end, in the absence of standard operating procedures, the result is variation in process and by definition; variation is the enemy of quality. By determining the least wasteful method of performing a task, quality is improved, cost is reduced and on-time delivery is the final result. By performing a task the same way each time assures consistency and eliminates variation.

As workflows are identified and the standard operating procedures are put in place, the success of these procedures will be directly determined by how effective an organization is at answering the following questions:

• What are the required inputs?
• How were you trained?
• What do you do?
• How do you know your output is good?
• What feedback do you receive?
• Who are your customers?
• What keeps you from doing error-free work?
• What can be done to make your job easier?
• What would you change as the manager?

It is hopefully fair to assume that all employees want to do a good job and would rather do an activity right the first time and not be faced with rework or quality issues. Standard operating procedures, as information or product, are passed from one group to another allowing for consistency in both input and output, resulting in improved quality and happy customers. That is a winning parlay.

Those Pesky Competitors

For a significant number of businesses however, changes are dictated externally by competition, customers, and vendors and for publicly traded companies, possibly the shareholders. This external pressure, when coupled with potentially internal conflicting goals tends to increase anxiety levels and can further contribute to poor system selection and/or utilization. How often is it heard that if we don’t change we will lose? The Internet and e-commerce are recent examples of technology forcing many businesses to react.

One of the ways businesses have tried to deal with change and the expected pressures is through strategic planning. When done correctly, and shared appropriately throughout the organization, the strategic plan becomes a roadmap and a source of reference throughout the year. By establishing a Target Operating Model (TOM) that reflects the strategic plan, the selection of the appropriate ERP can be measured against its alignment with the TOM along with value derived.

Procedures And Policies Are Linked To ROI

It is assumed that the procedures and policies associated with a new system will be integrated as part of the implementation process. Vendors of technology and software will do their best to provide the appropriate operational training however are not generally in the business of assuring that the organizational infrastructure can absorb the change. That is left to the management and implementation team.

Recognizing that a new system carries risk as well as rewards, the management team is functioning under its’ own level of pressure and may not be the best in soothing the concerns, issues and change being felt by the employees. The good intentions associated with the new system may indeed be counterproductive without the corresponding balancing of the attitudes, goals, objectives and concerns of the people that comprise the organization.

Implementing The Strategy

Regardless of the status of the current information technology, that is utilizing an existing system or entering into the selection process of a new one, it is essential that the TOM and value to be derived are clearly defined. That is, just how will we as an organization measure the ERP value and, equally important, how will our customers measure us to decide if we are in fact successful in implementing our strategy. In addition to this measurement is the strategic plan. It must be reflective of where we want the business to be and how we will measure our success.

Finally, the integration of technology and infrastructure are essential to maintaining the balance of maximizing customer service. We must place equal emphasis on understanding and implementing positive attitude as we are in implementing technology.

Defining and achieving improved results is critical to the on-going success of most businesses. To invest hundreds of thousands of dollars in technology and systems without recognizing that tools are only as good as the operator is a formula for disappointment. It has been said that the majority.

Monitor And Communicate Progress

There are many ways to distill strategic planning into execution. Chartering is a great way to focus on execution while creating accountability & buy-in throughout the process.

If you are open to a conversation about improving manufacturing workflow or how our in-depth work style and personality assessment could help your team, including pricing and the science behind the tests, please contact us at 310-453-6556, extension 403.

David Shaffer, Senior Consultant with Lighthouse Consulting Services, LLC, is recognized for his ability to effectively integrate all aspects of business including financial management, information systems, infrastructure, sales management, sales strategies and operations. David assists companies from executive strategic planning through operational and business process improvement opportunities to the selection and integration of management information systems solutions. His range of company support includes start up through Fortune 500.

Lighthouse Consulting Services, LLC provides a variety of services, including in-depth work style & personality assessments for new hires & staff development. LCS can test in 19 different languages, provide domestic and international interpersonal coaching and offer a variety of workshops – team building, interpersonal communication, stress and time management, leadership training as well as our full-service Business Consulting Division. To order the books, Cracking the Personality Code, Cracking the Business Code, and Cracking the High-Performance Team Code, please go to: www.lighthouseconsulting.com.

Grow Your Business! 10 Winning Strategies for the New Decade

By Patrick McClure

Congratulations, and welcome to the New Decade.

Today we start writing the history of YOUR business in the 2020’s. What will it include? Will we see spectacular growth, stellar revenue production and champagne toasts? Or will your decade be filled with lost business deals, declining revenue and sour grapes? The outcome is up to you, and now is the time to plan for your future.

Much of the future is uncertain, of course, but one thing we know for certain. Every one of us just got a year older! And every one of our customers and prospects got a year older. Time marched on for all of us, and this means we need to recalibrate, refocus, and refine our plans. What worked in the 2010’s will need to change to match the 2020’s. And if we don’t change, we risk getting run over by the onrush of technology, ideas, and youth.

In this spirit, we’ve put together this article to help prepare you for the future decade. After considerable research (both past and future), consultation with our focus groups (including millennials and Gen-Z), and getting feedback from industry peers, we are now prepared to put together the following list of the TOP 10 WINNING STRATEGIES FOR THE NEW DECADE.

Here they are:

1. Correct Target Market & Cohort

There are 4 major cohorts in today’s Marketplace, and it’s vital that you understand these generations and the changing buying patterns they bring. Here’s a quick snapshot of the essential features:

You can’t sell anything unless you understand your target market and who is doing their buying. This means understanding the environment they grew up in, the events that shaped their lives, their age, what they’re challenged by, and what’s important to them.
It’s also important to document the buying process at your key prospects. Oftentimes, you will find the actual buyer is a Baby Boomer or a Gen X, but the influencers are really Millennials or Gen Z. Typically, the busy executive will have “someone on their staff” research new products or directions and bring back a short list of what they found. If you are not influencing these younger influencers, you might never make the short list!

2. Unique Value Proposition

We don’t sell products anymore, and we don’t really sell benefits. The world has gone way beyond product details (unless you’re selling highly technical products). Buyers today are constantly asking “What’s in it for me,” or what will it do for my business and my bottom line. This means we need to shift our focus to the Unique Value of our product or service.
If there’s nothing unique about our product, we need to go back to the drawing boards and figure out WHY people are buying from us. Sometimes, the best way to understand your unique value proposition is to ask your buyers.

The key is to understand your UVP, and then BRAND your product with it. And for heaven’s sake make sure that you solve an actual problem for your customers. Don’t make the mistake of creating a “me too” product that doesn’t really solve a problem!

3. Marketing across Generations

If you understand the generations, you’ll appreciate something called “screen size.” Baby Boomers grew up with the television, and some of them were there when color screens were first introduced. They viewed the world through the lens of a television screen, and they received news on 3 major channels only.

Generation X (age 38-54) grew up with television, but increasingly their attention shifted to computer screens. First the desktop with an attached screen of varying sizes, then in later parts of the cohort this transitioned into laptop devices. The screen became smaller, and cable TV was introduced which expanded the number of channels.

Millennials (age 25-39) grew up with laptops and tablets, but their screen now included cell phones which now included email, texting, and web access as well as making phone calls. The screen size was now even smaller. And the next cohort, the sons and daughters of millennials (age 12-25) can seamlessly split their time across all 5 screens but are mostly focused on their cell phones. Indeed, 46% of their waking hours are spent peering at their cell phone screen, which is now leading to multiple medical problems and cell phone addiction (nomophobia).

If important for marketeers to understand their target market and concentrate their efforts on the best screen for their market. If you’re selling to Gen-Z, then you wouldn’t spend your marketing dollars on printed brochures or email campaigns! Conversely if your target market is baby boomers, you wouldn’t feature google ads or gaming consoles. You must match your marketing dollars to the correct screen!

4. Selling in the “New Normal”

Sales today occur at light speed. Buyers are demanding short, concise, value-based branding and gives them an instant WIFM (what’s in it for me). Everything today has accelerated, and you don’t have time for complicated messages. Keep it direct, simple, relevant, and compelling and don’t waste your buyers time!

5. Replace Cold Calling with Warm Calling

The years of cold calling or cold visits are pretty much over. In fact, one of my associates has written a best seller entitled “Never Cold Call Again,” (Frank Rumbauskas) in which he argues that cold calling is not only ineffective, but it damages credibility and drives away potential customers! My advice is simple: if you’re going to be using the phone for sales, make sure you are making “warm calls.” Research your prospects in advance, know their names and their company, and figure out a way to make the call valuable and not a waste of time. Pre-stage your calls by sending a text in advance (if you know their cell phone #), research them on LinkedIn, and try to get a warm referral from an associate or networking partner.

6. Deliver what they REALLY want at light speed

Speed of delivery is incredibly important. Customers are used to near-instantaneous results. They can order product and have it on their doorstep the next day (Amazon Prime), they can purchase and download movies and play them NOW, they can have groceries and products delivered by Wal-Mart or Target within minutes. They are used to near-immediate gratification and simple interfaces. If you have delays in your order fulfillment process, your customers will not tolerate it. Fix it!

7. Use Free as a Strategy

I can remember marketing a Presentation Skills training course for a bargain rate of $499 for an entire day of training. It was a killer price and always sold out in the past! But after renting a hotel room and filling it with 3 attendees (OUCH) I did my research and discovered that one of my competitors was offering a one-day class that same day in that same town for FREE!

The new selling strategy has evolved. Savvy marketeers are now enticing customers to try it out for free or nearly free, and then making their margins on upselling the next step. For instance, SalesForce.Com (the dominant CRM vendor) will happily give away a version of their CRM software to individual users. You can download it for free and use it if you like, and it works just fine. However, when you expand and want to add users or implement more advanced features of the software, you must upgrade (for a hefty fee).

On the retail side, visit Costco and cruise their aisles, and you can try dozens of samples. Of course, this drives huge incremental sales. Ergo Free as a strategy can really work!

8. Replace Selling with Influencing

Millennials and Gen-Z do not like the term “selling.” No one likes to be sold anything, but we all like to buy. The modern sales model uses a lot of “influencers” to generate brand awareness and buzz. Many influencers have hundreds and thousands of followers, and when they endorse a product (via Facebook, twitter, Instagram, or shapchat) it can lead to massive sales and profits.

One of the biggest influencers in social media today are performers. For instance, pop singer Selena Gomez (age 27 net worth $75MM) has 123 MILLION followers on Instagram! BTW, the last we checked her fee for simply mentioning your product in a post (implied endorsement) was over $1 MM.

Of course, you may not be able to afford a superstar endorsement, but your sales planning needs to include a strategy to attract influencers and get their support for your product/service.

9. Take advantage of Technology

Of course, make sure you’re taking full advantage of any technology at your disposal. Depending on your target market, divide your sales & marketing budget accordingly. There are huge benefits to be tapped into with social media, web design, social media marketing, gaming, virtual reality, and online advertising.

10. Hire a Gen-Z or Gen-Y

In order to fully implement technology, my best advice is to hire a Gen-Y (Millennial) or a Gen-Z for your marketing department. First job is to have them review your marketing plan for 2020 and tell you what’s wrong with it! They will not back off from their honest opinions, and they’ll probably give you some great advice.

You might have to bite your tongue and learn to tolerate a younger brash employee who expresses their opinion freely with no filter, but it will be worth it. Especially if you want to connect with a younger target market, it pays you to listen well.

So, there you are! 10 quick strategies for survival in the new decade. Good luck and let me know your success with these tips!

Patrick McClure is a senior sales consultant with Lighthouse Consulting Services, LLC as well as speaker, trainer and author who enjoys working with individuals and corporations to help them achieve maximum performance. He has dedicated his practice to helping others become more successful and specializes in sales training. To learn more and receive Patrick’s free newsletter, please email Patrick at patrick@lighthouseconsulting.com. Or call him at 310-453-6556, ext 415.

Lighthouse Consulting Services, LLC provides a variety of services, including in-depth work style assessments for new hires & staff development. LCS can test in 19 different languages, provide domestic and international interpersonal coaching and offer a variety of workshops – team building, interpersonal communication and stress management.

To order the books, “Cracking the Personality Code”, “Cracking the Business Code” and “Cracking the High-Performance Team Code”, please go to www.lighthouseconsulting.com.

By David Shaffer MBA , Sr. Consultant, Practice Head for M&A and ERP/MRP

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Those Pesky Competitors

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1. Correct Target Market & Cohort

2. Unique Value Proposition

3. Marketing across Generations

4. Selling in the “New Normal”

5. Replace Cold Calling with Warm Calling

6. Deliver what they REALLY want at light speed

7. Use Free as a Strategy

8. Replace Selling with Influencing

9. Take advantage of Technology

10. Hire a Gen-Z or Gen-Y

In-Depth Work Style Personality Testing

Talent Development

Lighthouse Consulting Partners, LLC

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