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Victor's story - how business reach a ceiling and how to break through it
- 1. Victor’s Story A Strategic Mentors seminar
- 2. Founded because businesses reach a ceiling and then get stuck – but it can be easier and better than that
- 4. Victor’s Story Why is it that most companies choose not to take advantage of the opportunities that are open to them? Out of 4.8m enterprises in the UK less than 5% have more than 10 employees
- 5. Victor knew there was a need in the market and Victor knew how to satisfy this need better than anyone else It all started with an idea…
- 9. Success? “Things are going really well, we have never been so busy!”
- 10. Success? “Things are going really well, we have never been so busy!”
- 11. Does it have to be this way?
- 12. The early days…
- 13. Going well…
- 17. Management Styles 1.Visionary 2. Coaching 3. Democratic 4. Affiliative 5. Commanding 6. Pace Setting 1.Commanding 2. Pace Setting
- 18. A change in personality? A change in Staff culture?
- 19. Why bother? It’s always worked for me before.
- 20. freedom
- 21. The trouble with significant change • sucks up time, energy and emotion • distracts from the main purpose • disrupts operations • annoys people • undermines morale I’ve got an idea I’m happy as things are
- 22. Performance Time Crazy Time Performance CERTAINTYUNCERTAINTY Well led change CERTAINTY Announcement of Change
- 24. What worked in the past can hold you back in the future Dilemma 1
- 25. Doing things the way you always have, means there’s a good chance growth will stall Dilemma 2
- 26. there is a good chance it will not get off the ground. If a business starts in the way that it must operate in later life, Dilemma 3
- 28. Larger businesses have more chance of surviving, offer a better life style to the owners and have greater monetary value Dilemma 5
- 29. Remember Victor’s Story? Out of 4.8m enterprises in the UK less than 5% have more than 10 employees It doesn’t have to be this way….
Editor's Notes
- Victor’s story was conceived following a discussion with a sizeable accountant who lamented that it appeared the norm for their clients to hit a glass ceiling. The clients would grow to the point where things would become difficult then retrench back to a size where they would be more comfortable The founders of Strategic Mentors, having had considerable success in this area, didn’t believe that it had to be this way and decided to tell Victor’s story to explain the problem and to offer a solution. Link to next slide: … let me tell you briefly about Strategic Mentors …
- … so Strategic Mentors was born because we were pretty outraged at a “professional advisor” . Give a short introduction of the founders and about yourself. Make the point that this is not about us but about you (the audience)
- This is Victor’s Story and his dilemmas. There are five dilemmas which we will summarise at the end. See if you can spot them as we go.
- Question: why is it that …….. Etc The fact is; the statistics do bear out the accountant’s ascertains. But why does this matter? (‘cos not everyone wants to build an empire) Let’s explain why this DOES matter … introduce Victor’s Story …
- It all started……: give a brief description of any ‘wide eyed’ business person who starts business, ideas, aspirations, concerns, passion, didn’t want to work for an old boss, thought he could do it better etc. and so he set up his business. Link to next slide: but WHY did he decide to start the business …? …
- Here’s why … to achieve his version of Freedom. Simple as that! Link to next: let’s look at how he did …
- Victor DID achieve success. He got respect, people saw him as successful (which brings its own pressures, of course!) Link to next slide: and the neighbours could see he was successful …
- … with the flash car outside his house, and kids at private school … Link to next slide: so that’s what it looks like from OUTSIDE … what does it look like INSIDE the business?
- Things were going really well. The business had never been so busy……………pause for about 10 seconds (you’ll get an audience reaction) Its 7 O’clock. We don’t know whether its 7am or 7 pm but things have never been so good! Like a swan – smooth on the surface, but not the whole story! Link to next slide: … and his life at work isn’t the whole picture …
- Here’s what life is like at home – Mary enjoying the fruits of success too! Link to next slide: … so it begs the question …
- Does it have to be this way? We don’t think so but lets look at how it all came about. Link to next slide: … so let’s understand how his story unfolded and how he got to that position …
- In the early days when Victor was still just starting out. Victor was light on customers and had plenty of time to do a good job. The customers were happy and the business continued to grow. Link to next slide: … and the business grew …
- …as more customers came on board, Victor hired his first staff. The business was beginning to achieve balance and the customers continued to be happy. You can see Victor is carrying a bit of extra baggage, but hey…. That’s what’s expected of business owners……….pause. Those were good times. Link to next slide: … but things don’t stand still …
- The business continued to grow with more customers coming on board. Even though Victor was working harder than ever, carrying more baggage to compensate, the business was still getting out of balance. Some customers were happy, some not happy and some looking pretty angry. Link to next slide: … which leaves Victor wondering …
- … so where’s the problem? Can’t get the staff? Link to next slide: … well, actually his challenges are entirely predictable …
- … because ALL businesses will go through these “barriers to growth”. Research carried out by Harvard University in the US identified five barriers to growth and the solutions which might explain some of the difficulties. Explain the barriers and the solutions until you get to “control”. This is the brick wall that people hit – THIS is where so many businesses hit their glass ceiling. “If you remember nothing else from this presentation, remember the importance of this 4th barrier!” But why is this? Link to next slide: … so what’s needed to get over that Control barrier? …
- … Explain that the management styles that are required in the early days are commanding and pace setting. But, they only go so far, increasingly another four styles come into place and actually nock the original management styles into second place. Commanding and Pace setting are still relevant but are used increasingly sparingly in preference to the others. By natural selection Victor has been successful by being commanding and pace setting. The other styles are not in Victors nature. Victor doesn’t feel inclined to explain his vision, coach his staff etc. Even if Victor did change his management styles the staff would find it problematic. Victor, “this my vision”, “I want you to go away and think about how you might do it”. Staff, “yes ok, but just tell me want to do”. Link to next slide: … so this leads to a challenge for Victor … personally! …
- … so yes, there is a need for Victor to change … which is difficult at the best of times but the staff will have to change their culture. It’s a tall order. Link to next slide: … so if it’s so tricky, he has another good question …
- … why bother? I was doing OK before! It would be easier to go back basics. The way it used to be. We actually earned more money when n we were smaller and had less hassle. Maybe the accountant was right?! Link to next slide: … well … there IS a reason why it’s worth bothering …
- … remember what it was all about in the first place…..Freedom. Victor’s business is like a treadmill getting nowhere fast and Victor can only dream of turning it into an escalator to take him to freedom. THAT’s what he wanted. And it’s not working out like that is it?! Link to next slide: … but there is a reality he has to face …
- … to get to where Victor wants to get to and to achieve freedom things will have to change. But change is not easy. It’s disruptive and people don’t like it. Briefly explain but don't go into too much detail Link to next slide: … change is tricky … so let’s have a quick look at what happens during change …
- …Nick Faldo story? The point about change is that performance WILL do down before it improve. But Victor doesn’t like to see a drop in performance! Its not in his nature. Its not an easy transition. People don’t like to look stupid. Link to next slide: … so that’s a view of “change” … let’s now summarise all this …
- … there are 5 points that follow – we call them the 5 Entrepreneur’s Dilemmas … Link to next slide: … let’s look at the First Dilemma …
- … [read the content] “Can you start to see this now?” … Victor DID build a (financially) successful business … … but having reached the Control barrier, he needs a NEW way of working to get over that barrier! Link to next slide: … let’s move on to the Second Dilemma …
- … and here’s the thing! … … not only will “doing the same thing” not take you forward … … it will actually start tripping you up! [remember the 3rd see-saw diagram? – the baggage is very big … the business is getting out of Control) Link to next slide: … moving on to Third Dilemma
- … but you know what? He COULDN’T have started in the way he NEEDS it to be … … ‘cos if he did, he’d never have built it to this level of success! Link to next slide: … so if he was RIGHT to start in the way he did, and he NEEDS to work differently in future …
- … so “Change Is Inevitable” … but it’s difficult … … and CAN be dangerous (and we’ve see what can happen in the change graph slide) Link to next slide: … and the final dilemma shows why it’s WORTH going through the change …
- … the reality is that larger businesses are LESS RISKY … (‘cos don’t rely on Victor alone, or one big customer / supplier / staff member etc.) … and give Victor a much better lifestyle! (much better than the 7 o’clock slide!) Link to next slide: … so things brings us full circle …
- … to the question Victor was pondering from his comfy chair … Now he understands the problem … … and he can share our view that “no, it absolutely does NOT have to be this way” …! (This is the last slide here … but you should always follow with a “Call To Action” slide …)