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Fatal Business Errors Made By CEOs

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  • Copyright 2009, The Goldhill Group
  • Transcript

    • 1. CEO ROUNDTABLE The Peer Group Experience
    • 2.
      • This morning’s objectives
      • To help you get un comfortable
      • Introduce the CEO PEER GROUP PROGRAM
      • Provide you a flavor for 2 elements of PROGRAM
          • Speakers and group discussion
        • Have you walk out with 1-2 concrete ideas to implement in your business
    • 3. What is a CEO PEER GROUP?
      • Peer consulting group of business owners
      • Informal Board of Directors
      • Coaching forum
      • Way to find out “what you don’t know”
      • Tool to create work/life balance
      • Real-world MBA
      Today is NOT a CEO PEER GROUP meeting
    • 4. Upfront Contract for Today
      • Our Commitment
        • Deliver 1-2 good ideas for your business
        • Ask tough questions
        • Challenge you
        • Finish on time
      • Your Commitment
        • Be frank, open and decisive
        • Turn cell phones & email off
        • Complete feedback form
    • 5. Participant Introductions
      • Name, company, location, years in business?
      • Thirty (30) second version – about your company
      • What expectations you have for today, if any?
      • Optional
      • About you, your family or hobbies, etc.
      • Your vision/mission for your business
      • Most underrated value
      • Historical figure you’d like to have over for dinner
    • 6. Best Practices Discussion
    • 7. Best Practices Discussion
      • Activities to improve operating margins
        • Laying off non-billable/revenue generating employees
        • Reducing specific overhead items
        • Adding more value while holding price
      • Managing the business “by the numbers” is:
        • The most important function I perform
        • Over-rated
        • I look at the income sheet and not much else
        • How often do you look at the numbers?
    • 8. Best Practices Discussion
      • 3. Employer funded health insurance is:
        • A prerequisite of being in business
        • Something the employee should pay half of
        • The employee’s problem
      • Other:
    • 9. Business Education
    • 10. Speaker
      • “ The Impact of the Election on Small Business ”
      • Stuart Waldman, President
      • Valley Industry & Commerce Assn.
      • Education : J.D. from Loyola Law School; B.A. from CSUN in political science Favorite book : Art of War by Sun Tzu Team I’d most like to play on: U.S. Soccer team Most underrated value: Loyalty Historical figure you’d most like to have over for dinner: Golda Meir Vision for the Valley: A Valley with great public schools, a world class public transportation system, and a thriving business community.
    • 11. Host Presentation / Discussion
    • 12. Facilitator
      • “ Fatal Business Errors Made by CEOs and How to Avoid Them”
      • Jonathan Goldhill, The Goldhill Group
      • Education : MBA from USC Entrepreneur Program; B.A. Sociology from UCSB Experience : 20+ years consulting, coaching, training, financing, small bus. mgmt.
      • Favorite book : an open one Team I’d most like to play on: the one I’m coaching at that time Most underrated value: Enjoyment Historical figure you’d most like to have over for dinner: John Maxwell Mission/Vision: Helping CEOs and Presidents of owner-managed companies improve personal, professional and organizational effectiveness
    • 13. Source Materials
    • 14. Gut Check Test
      • ___ I crave more personal time, more freedom
      • ___ I feel, at times, like a prisoner to my business
      • ___ I say routinely, “I didn’t get anything accomplished today”
      • ___ I feel like I’m working too much, earning too little
      • ___ I feel “out of control”
      • ___ I reactively tackle urgent matters instead of important matters
      • ___ I am caught working “in” my business instead of “on” my business
      • ___ I am juggling too much and feeling overwhelmed and frustrated
      • ___ I am chained to my desk, phone, pager, e-mail, etc.
      • ___ I am the chief go-to problem solver in my business
      • ___ I occasionally suffer from the “business owner blues”
      • ___ I am stuck “doing everything” myself
      • ___ Clutter, complexity, and confusion have overtaken my life
      • ____ Total (How many checked items?)
    • 15. What DO you LOVE about being an entrepreneur?
      • Freedom
      • Doing what I love
      • On my own
      • Profits
      • No one tells me what to do
      • Fun work
      • Disseminating the vision
      • Growth
      • Exciting
      • Control Culture
      • Building Value
    • 16. What DON’T you LOVE?
      • Unmotivated Employees
      • Illegal and unlicensed competitors
      • Bad Market Conditions
      • Shrinking Margins
      • Long Hours
      • Weak managers and weak team
      • No one to delegate to
      • Loneliness at the top
      • Ineffective marketing programs
      How close to a breaking point are you?
    • 17. Do You Own a Business or a Job?
      • Can you take a two-month vacation? A one-month vacation? A two-week vacation?
      • Can you take a one-week, work-free, guilt-free vacation?
      • If not , you do not have a successful business, you have a glorified job!!
      • You do not have an effective business system, you are the system!
      • If you are the system, you are limiting the company’s growth and your freedom.
    • 18. Wake-Up !
      • You own a business, not a job! Start thinking and acting like it -- more brain, less brawn !
      • Your business should not depend upon your daily presence, personality, problem-solving and perspiration for its survival
      • You must design a business that is distinct from you and works in your absence
      • You must get strategic to get free and get wealthy
      • Focus on becoming a Strategic Business Owner!
    • 19. The Strategic Business Concept
      • Can your business run predictably, consistently and automatically whether you are there or not?
      • Is your business dependent on you, the owner, or upon your business systems?
      • Do you run your business?
      • Does your business run you?
      • Can your business produce consistent results in your absence?
    • 20. E-Myth Errors
      • Typical small business owner is:
      • 10% Entrepreneur – Dreamer/Creator/Leader
      • 20% Manager – Pragmatic/Organizer/Numbers
      • 70% Technician – The Doer
      • Your business mirrors your lopsidedness
    • 21. The “Technician”
      • Represents the Tactical view of the business – not the Strategic view
        • Technical work does little to move the business forward to create value
        • If the business depends on its owner, the owner doesn’t own a business, s/he owns a JOB
      • Business growth is limited by how much the owner can accomplish themselves
      • Transition to employees – helpers with the technical work. Abdication or Delegation?
    • 22. The “Manager”
      • The Manager function is defined by transition from doing the day-to-day work that produces revenue to organizing and supervising others who will do the day-to-day work
      • Represents a difficult challenge because employees will rarely do the work as efficiently or as effectively as the business owner
      • Value of doing something well vs. doing something that you shouldn’t be doing at all?
    • 23. The “Entrepreneur”
      • The Entrepreneur creates the vision and direction for the business. This is the Highest Impact activity for the business owner and the business
      • The Entrepreneur is obsessed with building a business that works without them!
      • The Entrepreneur prepares himself/herself and their company for growth by building a foundation and structure that can carry the demands imposed by growth.
    • 24. E-myth Exercise
      • What could you accomplish if you were mostly “Entrepreneur?”
      • What is preventing you from closing the gap?
      • What will you do differently in the future?
      • What is the payoff if you do make the change?
      Role Where you are now (%) Where you would like to be (%) Technician Manager Entrepreneur
    • 25. E-Myth Errors
      • OWNER-DEPENDENT BUSINESS
      • DOING LOW-VALUE “WORK”
      • TEETERING ON GREATNESS
      • FIRE SLOWLY, HIRE QUICKLY
      • NO JOB TESTING
      • NO FORMAL TRAINING PROGRAM
      • INFORMATION HOGGING
      • YABUT EXCUSES
      • ABDICATING NOT DELEGATING
      • SAVING YOUR WAY TO SUCCESS
      • WEAK SALES & MARKETING
      • OVERSERVICING BOTTOM 10%
      • FIELD OF DREAMS THINKING
      • FAILURE TO GET OUTSIDE HELP
      • EXECUTIVE INDECISIVE SYNDROME
    • 26. FATAL ERROR 1: Owner Dependent Business
      • Do You Own a Business or a Job?
      • Do you run your business OR does your business run you?
      • Can you take an extended vacation?
      • Can you take a work-free, guilt-free vacation?
      • Is everyone and everything dependent on you?
      • Are you limiting the company’s growth?
      • Is the dependence on you limiting your freedom?
      • Can your business run predictably, consistently and automatically whether you are there or not?
      • Can your business produce consistent results in your absence?
    • 27. Owner-Dependent = Weak/Inadequate Systems
      • 90% of small businesses have weak operating systems. All good ones do.
    • 28.
      • BUSINESS PROCESSES
    • 29. FATAL ERROR 2: Doing Low-Value Work
        • Working “IN” not “ON” your business
        • Doing the work sometimes feels good
        • You are the bottleneck
        • What does doing the work really cost you?
        • Do you think Donald Trump is dealing cards at the blackjack table?
        • What software code did Bill Gates last write?
        • Did Fred Smith ever deliver a FedEx package?
    • 30. Delegation Line Delegation line High Impact/ High Value Low Value Low Frequency High Frequency $250/hr $10/hr 20% $35% 5% Strategic Planning Key Personnel Hires Significant Customers Sales Calls Bank Deposits Filling in 1x/month on a job Driving the Truck Supervisor on Jobs GREEN COLLAR WHITE COLLAR DOG COLLAR BLUE COLLAR
    • 31. Mindset Shift from Employee to Strategic Leader Tactical Strategic Doing Leading Work a job Build an Asset Details Big picture Role player Head coach Reactive Proactive Technician Architect Doing things right Doing the right things Day-to-day Long-term view Working hard Working smart Shifting gears Shifting mindset Working “in” Working “on”
    • 32. FATAL ERROR 3: Teetering on Greatness
      • Great businesses look like this, right?
      GREAT PEOPLE ORDINARY PEOPLE
    • 33. WRONG!
      • Great businesses look like this:
      GREAT PEOPLE ORDINARY PEOPLE
    • 34. Great businesses work like this, right? RESULTS HARD WORK IDEAS GREAT PEOPLE
    • 35. WRONG!
      • Great businesses work like this:
      RESULTS HARD WORK IDEAS GREAT PEOPLE ACCOUNTABILITY & PLANNING SYSTEMS
    • 36. FATAL ERROR 4: Firing Slowly, Hiring Quickly
      • Do you tend to hire too fast?
      • What has getting this error backwards cost you?
      • What has that cost you?
      • Do you hire for talent or for their experience on a resume?
      • What do you do to match talent to the position?
      • What % of your workforce is emotionally engaged?
      • How long do you wait to fire an emotionally disengaged employee?
    • 37. FATAL ERROR 5: No Formal Training Program
      • Do employees know their roles, responsibilities and what is expected of them?
      • Are their talents being utilized in the best way possible?
      • Are you coaching, challenging, motivating them?
      • Do they feel appreciated and valued?
      • What training do they get?
      • What authority do you give them?
      • Are they held accountable for results?
      • OR, Is your classroom empty?
    • 38. FATAL ERROR 6: No Job Testing
        • Start with aptitude NOT experience
        • Test loyalty and honesty
        • Test skills and job fit
          • Knowledge of best practices
            • Sales & Management behaviors
        • How respond to:
          • problems and challenges
          • influence others to your point of view
          • pace of the environment
          • rules and procedures set by others
    • 39. FATAL ERROR 7: Information Hogging
      • Have you shared your vision?
      • “ I need to clone myself because my people just don’t do it as well as I do.” You are right!
      • Give your people the right to fail.
      • Most CEOs don’t share any information with their people. Why?
      • Share data like objectives, basic financial data like margins, goals, etc.
    • 40. Other Errors
      • OWNER-DEPENDENT BUSINESS
      • DOING LOW-VALUE “WORK”
      • TEETERING ON GREATNESS
      • FIRE SLOWLY, HIRE QUICKLY
      • NO JOB TESTING
      • NO FORMAL TRAINING PROGRAM
      • INFORMATION HOGGING
      • YABUT EXCUSES
      • ABDICATING NOT DELEGATING
      • SAVING YOUR WAY TO SUCCESS
      • WEAK SALES & MARKETING
      • OVERSERVICING BOTTOM 10%
      • FIELD OF DREAMS THINKING
      • FAILURE TO GET OUTSIDE HELP
      • EXECUTIVE INDECISIVE SYNDROME
    • 41. FATAL ERROR 8: Yabut Excuses
      • Yeah but…
      • It is far easier to criticize than create
      • Problem- and finger-pointing
      • Stop accepting yeah buts from yourself
      • Stop accepting yeah buts from others
      • Stop making assumptions
      NO accountability * NO response–ability * JUST excuses, please!
    • 42. FATAL ERROR 9: Abdicating Not Delegating
    • 43. FATAL ERROR 10: Saving Your Way To Success
      • Maximum 10% savings in your expenses
      • The real money is in the top line
      • Stashing your nuts inherently cuts off risk and innovation.
    • 44. FATAL ERROR 11: Weak Sales & Marketing “ Because its purpose is to create a customer, the business has two and only two functions: marketing and innovation. Marketing and innovation produce results. All the rest are costs.” – Peter F. Drucker the father of “modern management” author of 39 business books consultant to the most acclaimed companies
    • 45. Leverage of Marketing
      • Selling =
        • One-to-one persuasion
        • Converting leads to customers
        • The ground war
      • Marketing =
        • One-to-many education
        • Generating qualified leads
        • The air support
      • Most businesses miss out on the incredible leverage of marketing!
    • 46.
      • When you think of the word “salesperson”, what comes to mind?
      • How comfortable are you?
      • Do you have a selling system?
      • Did you ‘crack the code’ and teach it to your employees?
      Get a new attitude! … And some solid sales behaviors and techniques
    • 47. Selling Improvement
      • How can I improve dramatically my selling effectiveness?
      • How can my company improve its sales effectiveness?
      • __________________________________________
      • __________________________________________
      • __________________________________________
    • 48. FATAL ERROR 12: Over-servicing Bottom 10%
      • Not Saying NO! to your worst customers
      • Over-servicing = headaches and lost profits
      • Have the guts to raise your prices
      • Eliminate the dogs (bottom 10-20%)
      • Cultivate the gems (top 10-20%)
      • Vacuum to prosperity
    • 49. FATAL ERROR 13: Field of Dreams Thinking
      • Hope is not a strategy!
      • Running your business without thinking doesn’t work
      • Unclear, unwritten goals and objectives
      • No simple business plan
      • Not watching your numbers
      • Don’t‘ know your ratios
      • Don’t know your KPIs
        • Key performance indicators
    • 50. FATAL ERROR 14: Failure to Get Outside Help
      • Failure to fix “lonely at the top” syndrome
      • Who do you talk to about really important issues?
      • (e.g., selling the company, bring in top executive, holding employees accountable, improving company performance)
      • Friends and family?
      • Employees?
      • Your Advisors? (e.g., attorney, CPA, consultants, etc.)
      • Other owners?
    • 51. FATAL ERROR 15: Executive Indecisive Syndrome
      • Many executive get successful then quit taking chances.
      • Which CEOs are more successful:
      • the ones who take too many chances?
      • OR
      • the ones who take too few ?
      • Failure = feedback
    • 52.
      • The definition of insanity
      • is
      • continuing to do the same thing
      • and expecting a different result.
    • 53.
      • “ Busy-ness”, Consumed by clutter
      • Technical Tendencies - Habits
      • Waste our time and talent
      • Inadequate Business Systems
      • Ineffective Leadership/Delegation
      • Growing Business Complexities
      Human Nature – The Challenge
      • RESULT Feeling Stuck
        • We Lose…
          • … Focus
          • … Opportunities
          • … Productivity
          • … Income
          • … Clarity
          • … Effectiveness
          • … Joy
    • 54.
      • Cash flow pressures
      • Constant urgency
      • Business is stagnating, growing too fast or out of control
      • Ineffective selling attitudes, techniques & behaviors
      • Inefficiency – poor systems
      • Ineffective leadership
      • Poor delegation skills
      … and the signs
      • Feeling
        • Exhausted
        • Directionless
        • Stressed
        • Isolated & Alone
    • 55. Nuts & Bolts of the CEO PEER GROUP PROGRAM
    • 56. The CEO Peer Group Program
      • Monthly Group Meeting
      • Individual Consulting/Coaching Sessions
      • Speaker Series and Special Events
    • 57. The Group Meeting
      • Monthly half-day sessions with all members
      • Members present issues confronting their companies to the group for review, analysis and feedback
      • Input on issues from peers helps members reach informed decisions from those with experience
        • Host Presentations - Book Summaries
        • Tiger Teams - Open Discussions
    • 58. Individual Coaching/Consulting Sessions
      • Monthly, 90-120 minute sessions at the member’s business with group facilitator
      • Focused discussion
        • What needs attention?
        • Issue development for group
        • Strategic thinking: planning, growth, expansion, operations, sales & marketing strategies
    • 59. Speaker Series / Special Events
      • Speakers:
        • Clinical Psychologist: Using Personality Assessments to Increase Employee Productivity
        • Hiring Expert: How to Hire and Leverage Top Performers
        • Employment Attorney: Top 10 Errors Made by Owners
        • Online Marketing
      • Special Events:
        • Wine Tasting Holiday Mixer
        • MB2 Raceway
    • 60. Current member overview (Calabasas Group)
      • Age range: 32 to 58 years old
      • Employees: 5 to 350 employees
      • Revenues: $550k to $9.5M
      • Industries: Janitorial Services, Remodeler, Market Research, IT Services, Bike Manufacturer, Appliance Retailer, Auto accessory manufacturer, Accounting firm, Pension Consulting firm
      • Successful business people (examples):
        • 38% net margin
        • $800,000 in net profits
        • Successful entrepreneurs with high school degrees and MBAs
        • Successfully sold two separate business for seven figures
    • 61. Membership Requirements
      • Time Commitment
      • Presidents, CEOs or Owners only
      • Minimum revenues > $500,000
      • Minimum # of employees = 5
      • No competitive or supplier relationships in the group
      • Strict confidentiality!!!
      • Completion of selection interview (60 minutes)
      • Payment of monthly dues
    • 62. The Next Step
      • Please complete feedback sheets
      • Do not answer “Yes” unless:
        • Intend to schedule a selection interview within next 2 weeks
        • Will extend us the same courtesy you would expect:
          • Take our phone call
          • Promptly return voice mail
          • Keep scheduled appointment
    • 63. Our Programs & Services
        • “ Coaching for Contractors” Weekly Webinar Series
        • Strategic Manager® Coaching Group for Contractors
        • Company Strategic Planning Retreats
        • Personal Strategic Planning Retreats
        • Executive (1-on-1) Coaching
        • CEO Peer Groups
        • Marketing Consulting Projects
        • The 51 Fatal Errors Coaching Club
        • DISC® Skills & Personality Assessments
      What are you waiting for? Don’t let time run out on you.

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