Eden Sunshine's BLOG

The Customer Doesn't Always Know What's Best

Whoever came up with the statement "the customer is always right" was wrong. The reality is that this statement was designed for people who couldn't be trusted to effectively connect with a customer in order to create a win win environment.

 

But the customer is not always right. The customer doesn't always know what they NEED. They might know what they WANT. But the two are entirely different.

 

Henry Ford once said, regarding the first car he ever built, "If I'd asked my customers what they wanted, they'd have said a faster horse."

 

Effective leadership listens and observes trends. They do talk with customers and look to the future. They might not base their decisions on what the customer says they want however. They look for trends that reveal what the customer really needs or at least will want in the future.

 

I recommend that we do this intentionally. Take some time and simply ask the question, 'what trends and opportunities seem to be emerging that our clients and industry will be interested  in the future?'

 

Here are a couple trends I have observed.

 

I see an ultimate decrease in the demand for commercial office space. Why? Technology is going to enable us to be able to telecommute more effectively. It's already happening.

 

There will be an increased demand in resources, training, materials and equipment designed for people to successfully work independently at home.

 

More outlets will emerge for socialization. It is already happening. Look at on-line social media. People will need to connect to others. If that isn't happening at work its going to happen somewhere. Starbucks like places will continue to grow as long as they can cater to the home-based work crowd. Wifi and Internet access, a quiet place to sit for long stretches of time will become common place in our neighborhoods.

 

I believe the next major break in technology since the desktop computer will be high functioning voice recognition programs. Think Star Trek and how the crew would interact with the computer. Key pads, mouses, touchscreens would become obsolete.

 

I would love to hear your feedback on trends in the world you see emerging too. 

 

Please post your comments below.

The Best Way to Innovate

To innovate alone or with another...that is the question.

 

I was meeting with a company the other day. We had just finished a team building process centered on the theme of innovation. After the activity we discussed how their company engages in innovation. We learned that in many ways, largely due to the personalities of the primary leaders of the business, that a culture of "innovate on your own" was largely embraced.

 

Knowing the leaders of this business well, I suspect this was not intentional. The fact is that their own style of innovation is such that they like to go into their offices and figure things out on their own. This is not a bad thing mind you.

 

However, some people are far more effective in the innovation process when they are able to brainstorm with others.

 

The point is this. According to The Level 7 Principle of Improving Performance, innovation can happen many different ways in an organization. Innovation is necessary and it must be systematic. If you aren't getting engagement from the people in the organization, then you might need to revise your system for improving performance to ensure innovation effectively takes place in the business.

 

Here are some key points to remember.

 

1- Innovation or improving performance in your business must be systematic.

2- Your systems, including this one, could be influenced, positively or perhaps negatively, by your personality.

3- Some people like to innovate alone. Other like to innovate in a group. Consider your people and create an environment that supports both.

R & D for a Small Business? Yeah Right! You Must Be Kidding...

I asked a client the other day how much he invests in research and development in his company on an annual basis.

 

“Eden,” he laughed, “I’m a small business with 25 employees and do less than 3 million dollars a year in sales, I can’t afford an R&D Department.”

 

“What do you think R&D is?” I asked.

 

“Well, that’s when you have a department specifically focused on identifying and testing new ideas and enhancing current products or services.”

 

“That’s correct,” I replied. “So are you saying that because you are a small business you don’t identify and test new ideas or enhance your current products or services?”

 

“Of course not! We are always looking for ways to make things better.”

 

“Is there really a WE or is it usually just YOU? I would imagine that you are probably the only one that is consistently looking for ways to make things better right?”

 

He agreed.

 

I continued, “And I would suspect that your process of improving your business is random, spontaneous, and haphazard.  It’s probably what we call ‘interruption innovation.’”

 

An example of ‘Interrupt Innovation’ is when you walk into your place of business after a networking meeting and begin to make some changes based on idea you just heard that you liked.

 

Meanwhile your staff is saying, here we go again, changing things that don’t really need to be changed. Or worse, talking about making changes and then nothing happens.

 

Most business owners hardly give their current systems and procedures a chance to work before they are changing it and doing something differently.

 

So the difference between a large business with a dedicated and obviously funded R & D Department and your business is that they know they are doing R & D, and are intentional and organized in their approach. But because you, who don’t recognize that you are doing R & D, are not intentional about it there is a lack of organization to your approach.

 

Part of the appeal to entrepreneurship is the coming up with new ideas. You became a business owner because you believe that you can do something better than what is already being done.

 

I am not suggesting that you should give that up. In fact, I am going to encourage it. But do so in a way that supports the development and improvement of the business in a consistent and orchestrated manner, while creating an environment where your people actively engage in supporting the improvement and innovation of your business as well.

 

Here are some tips that will enable you to increase your effectiveness in improving your business.

 

1- Remember your business is a collaboration of systems working together to produce the results of the business. If you make a system better, you improve the business.

2- Schedule specific times to review your systems and procedures. Put it on your calendar to work on your specific systems and view it as a priority. 

3- Research and Development ultimately comes down to learning. Think about it, that’s what big companies with fat R & D budgets do. They are learning, exploring, testing and researching.

 

A small business does this by intentionally exposing themselves to information that will help them see and understand new opportunities through reading, attending seminars, surfing the internet etc.  Many of our clients set aside specific times of the week and close their doors to read and learn about things that will give them information that will help them improve their business systems.

4- Encourage your staff, regardless of the size, to get involved in the process of helping to innovate and improve your systems. If they are working the system, then it stands to reason they should be the master of it. Your bookkeeper should be the master of those systems as an example. Empower them to introduce ideas and offer suggestions on how to improve the systems they operate. Create an environment where your people take ownership of the systems they operate.

 

Engaging in these steps will give you the same leverage as the huge companies with deep R & D pockets.

Running business on a wing and a prayer...

There are still a few spots left for tomorrow's Level 7 Experience Teleconference. Click here >>.

 

Taking the risk to start and get into business takes courage, guts and confidence. I admire that about business people. I admire their aspirations to make things better. That's what business owners do. They take an idea, a situation, a condition and look and find a way to improve upon it.

 

To me, that's admirable.

 

However, that same confidence could also lead to their demise. Over confidence could result in an unwillingness to admit or recognize our short comings.

 

Over confidence could lead us to believe we have it all together. The reality is that most businesses are just "wingin it". What does that mean?

 

When it comes right down to it most are just trying to figure out how to make their business work. Some will spend a life time, granted with some or even above average success, to ultimately reach a level of accomplishment only to get stuck. Not knowing how to get to the next level.

 

In other words, they don't really have a formula. A system. A method. A philosophy that could be replicated time and time again. In any business, at any size. It looks more like survival rather than certainty.

 

Perhaps its the thrill of the unknown that we enjoy. Maybe we really like the idea, deep down, that we don't know how our efforts are going to play out. Although, I don't buy it. Most the people I know that own businesses want some certainty of success beyond their confidence in themselves or a prayer (Prayer can be powerful however).

 

If you want to stop relying on a wing and a prayer then...

 

...here are seven things every business must do to ensure continued and replicable success.

 

1- Set goals like crazy. Be intentional about everything the business does.

 

2- Measure your goals objectively. That which gets measured gets done.

 

3- Create systems so that every goal you have has a consistent, predictable way of accomplishing it no matter who is operating it.

 

4- Thread your culture on purpose. Most problems in business stem from people not knowing and understanding the key beliefs and values of the business. Businesses must be intentional about building a self sustaining culture. Otherwise the culture is dependent on the owner.

 

5- Ensure accountability. The business must be absolutely certain that people will do what they say they are going to do. EVERY TIME Period.

 

6- Make sure your business communicates effectively. This included communication from leadership through the organization, communication from employees to management, communication from employee to employee and even communication from the business to it's clients. Quality communication demystifies expectations.

 

7- Be intentional about innovation and improving performance. Don't over innovate or under innovate. Great businesses innovate and improve in areas when its relevant to do so.

 

If you want to better understand these 7 Core Business Principles - Read The Level 7 Manifesto: A Simple, Common Sense and Proven Approach to Businesses Most Complex Problems and Frustrations. Get it now >>

A Great Idea Gone Bad

According to  Ed Catmull, President of Pixar Pictures, it is better to have quality, talented people over a great idea any day. If you have a great idea and the wrong people, they will screw it up. Nurture your talent, he says.

I agree. But what does it mean to have the right people in a systems driven environment? The right people doesn't necessarily require that you hire super expensive people with years of experience and background. Although that could be useful during the start up and innovation phase in a business. (More on that tomorrow). You are really looking for, first and foremost, people that fit the culture and personality of the business.

Obviously the personality and culture of businesses vary from organization to organization. Every business has its own personality or character. Pixar, I suspect, looks for people with a certain creative and collaborative bend in their personalities.

Nordstrom's looks for people who have a personality oriented toward exceedingly high levels of customer service.

GE looks for people who can get results independently.

Southwest looks for people who like to have fun.

Inflection HR looks for people who know how to think.

Lavidge and Internet Marketing Agency (IMA) look for people who work smart and are creative.

Aquatic Environmental Systems finds people with low egos and will work at a team.

The point is that attempting to execute good ideas without people that really get the culture and values of your business might not get executed and implemented properly.

Great business then begins with getting the right people.

System to Hit Your Goals Every Time!

Yesterday I wrote about the need to make course corrections in order to ensure that we don't end up in an undesirable place in our business.

 

Often we set out to achieve a goal, only to discover later that we haven't hit them. Then we wonder why. But at that points it's too late.

 

The question is then, "How do I ensure that I hit my goals every time?"

 

The process is actually rather simply, but not necessarily easy. If it were easy everyone would do it. That's why so few people are actually moving forward in their businesses and lives.

 

Step 1 - Set the goal. Obvious, but necessary. Your goal must be clear, concise, in writing and have a date.

 

Example: We will double our revenue and profit by December 2010.

 

Step 2 - Ensure that you have a methodology for measuring and tracking the goal.

 

Example: We have our financial statements that are up to date and current at all times.

 

Step 3 - Identify the systems that impact or ensure the goals. Identify the systems that are going to require innovation or improvement to achieve the goal.

 

Example: Our lead generation system is the primary driver of doubling revenue and profit. We need more leads. We also have in place a good lead conversion process that currently converts 75% of our leads. Our fulfillment systems are solid and we are managing the inflow and outflow of our money effectively.

 

Step 4 - Establish a goal for the system.

 

Example: Currently our lead generation systems provide us with 60 new, qualified leads per week. In order to hit our objectives, the system needs to produce 120 new qualified leads per week.

 

Step 5 - Innovate your system(s) to make the improvements necessarily to achieve goal.

 

Example: We have identified our primary lead generation sources and will increased our market penetration into those markets.

 

Step 6 - Set up regular checkpoints to evaluate the performance of your innovated system.

 

Example: We will review the results of our new lead generation efforts every 2 weeks.

 

Step 7 - This maybe the most important step. Take immediate action, as needed, to revise the system to ensure you are getting the results, or in this case, the number of leads your need each week to hit your sales and revenue objectives.

 

The bottom line is if you want to hit your goals, you need to take new action in order to get new results.

Is It Possible to Over Innovate?

Stop innovating to get your needs met! I had to remind a client the other day.

 

We get excited and it's a part of the nature as an entrepreneur to always be looking for ways to make things better. But you have to stop innovating for the sake of innovating or feeling good.

 

The Level 7 Principle of Improving Performance suggests that your innovation and improvment of performance in your organization is just as systematic and consistent as anything else you do.

 

Innovation takes place either when you have a breakdown or frustration and, upon evaluation of the system, requires that it needs improvement. Or when a system comes up for review as dicated by your improvement schedule.

 

As an entreprenuer who is innovating and bring new ideas, you have no idea how much the emotionally compulsive innovation patterns are distrupting our businesses. We might think we are helping or doing good, but most often you are not.

 

The key is to install a system, big surprise, that manages how and when we go about innovating and improving performance. We don't do it to feel good. We innovate to improve results.

Simple Business According to One of the Richest Men in the World

"The business schools reward difficult, complex behavior more than simple behavior, but simple behavior is more effective."

                Warren Buffett

 

There are seven simple behaviors that work and will transform the results you get in your business and your life if you apply them.

 

Be very clear on goals and expectations in every area of the business.

Be objective when you evaluate performance.

Be intentional when it comes to developing your company culture.

Develop great systems that produce optimal results.

Establish appropriate intervals to innovate your systems and business.

Make sure you have great communication throughout your business.

Create an environment where you and your people can trust, are accountable and can count on each other.

 

Take a moment and think about these for a moment. If you consider every piece of "business advice" you have every heard or seen, they all fall under one or more of these catagories.

 

Example. I see tons of folks out there promoting "how to get more business or touting cleaver or innovative marketing techniques".

 

What are they really saying? See the list above. They are really pointing to developing and innovating better systems.

 

Another Example. You are having a difficult time dealing with some of the people in your business. How do you solve a complex problem like this one?

 

It's actually rather simple. Take the list of Level 7 Core Principles above and ask yourself the question, "Which of these areas haven't we applied effectively?"

 

It's possible you haven't established clear expections. Or you haven't developed a good company culture. Perhaps you need to work on your accountability standards.

 

Business growth and problem resolution is quiet simple when you process them through The Level 7 Core Principles.

Flexible Like Water...

“One measure of how creative you are is how you respond to changes in your circumstances and environment. How flexible are you? Consider how water adapts to its environment: evaporation, condensation, snowflake, melting, flowing, goes around rocks, fills containers, etc.”

 

As the world and our perception of it changes around us we must be creative and flexible. We must be vigilant with tracking and knowing the truth about circumstances. Not jumping to conclusions and opinions but relying on evidence and fact. We must be proactive as we evaluate performance and attainment of our goals and finally, asking the question, what systems do we need to improve to deal with the changing times.

 

By the way, one of the most important questions you could be asking right now is this… “Is our marketing message congruent with the needs or wants of our potential customers and target market.”

Micromanagement versus Innovation

Employees hate to be micromanagement. Just ask any of them.

Employers hate it when their people don't produce results. Just ask any of them.

Now assuming you, as a business owner or manager, are not simply abdicating and putting up with poor performance and results, you are probably having regular conversations with your people to figure out HOW to get better performance and results.

The conversation often sounds like, "tell me what is happening with this...?" or "Explain what is going on with this client...?"

Believe it or not, to most employees this feels like micromanagement. To a manager, we are just trying to figure out how to fix the problem.

The end result is this method of managing "tactically" doesn't work. The solution to the problem is only temporary and specific to the circumstances in the moment. You never arrive at any permanent solution.

Granted, you might solve the problem or produce the result for that situation, but nobody really learns anything. And the solution is never scalable and rarely replicatable.

A more effective and strategic approach requires implementation of three of The Level Seven Core Principles.

#1- Apply the Principle of Defining Results and ask the question, "What is the ultimate outcome we want to accomplish?"So let's pretend you have a sales person that isn't getting enough appointments through their networking efforts.

An ineffective conversation might be: "Tell me about the call you to made to Mr. Jones today, what happened?" This is tactical troubleshooting. Then you proceed by telling the sales person what they SHOULD have said.

Rather, you ask the question, "What is the desired result?" Answer: To maximize the conversation of our prospecting calls.

#2 - Apply the Principle of Knowing What's True. Determine what the actual results are, objectively.

I might assume that the employee needs help in an area, but upon further investigation of the numbers discover that they are getting appointments with 50% of the people they talk with. I need to consider whether or not I am happy with those results before I jump in and attempt to fix something that may or may not be broken.

A good manager, knows the truth before acting.

#3 - Apply the Principle of Creating Replication. If you determine that the results, based on objective evaluation, are not up to par, then focus on the SYSTEM.

Ask yourself the question, do we have a system that ensures that our people are maximizing the conversion of calls to prospects? If not, rather than tactically solving the problem, work on the system. Test it. Then implement it.

In the end, the work you do with your people won't feel like micromanagement, because it's not. It is focused on system performance improvement and innovation and most employees are happy to participate in improving results and innovating.

Sold! Getting Your People to Buy in to Your Goals.

We just finished the Level Seven Arizona Community Roundtable last Friday. The Community Roundtable is a quarterly event where businesses that are in the process of implementing The Level Seven System get together for a day to brainstorm, problem solve and innovate. Many breakthroughs are made through the process because the conversations are so focused and utilize the Level Seven Language and Way of Thinking to drive our solutions.

One of the big question that came up last Friday was “How to Get Our Employees to Buy in to Our Vision and Direction of the Company”. Several hours on the conversation lead to the framework of what is likely to be a very productive system.

1- The Owner or leadership of the business, applying the Level Seven Principle of Defining Results, must have his or her vision and goals for the business written out in a clear, communicable and understandable format. This applied to things like the vision for the business, core values, annual or long term goals and objectives and more.

 

2- They must install a system, applying the Level Seven Principle of Conveying Information and the Principle of Creating Replication, that regularly and consistently communicates the vision or goals of the company. One time dialogs or hanging a mission statement on the wall won't cut it.

 

3- They must regularly evaluate, utilizing the Level Seven Principle of Knowing What's True, how the system is working. Our group determined that there are several methods to evaluate if the employees of the company are buying in to the vision and goals.

 

One of the ways you will know is simply by observing changes in the language and conversations people are having independently in the business. Are they using terms and language from your vision and goals? If yes, then your system is beginning to work.

 

4- Finally, using the Level Seven Principle of Improving Performance, the business must regularly review and look for ways to improve the system. It was determined that we can't keep saying the same thing over and over in the same way and expect people to continue to pay attention. We must always be looking for new ways to get and keep our employees attention.

 

Apply this system and approach and soon you will find you wont be the only one in the business who understands and is committed to the goals of the organization.