The Daley Institute Blog

Where Do We Go From Here?

2009-08-13T23:32:47Z

By John Daley, The Daley Group, LLC

Last year the world changed for most business leaders. Remember how good a president and manager you were and how successful you seemed to be?

Up until several months ago we were all playing a game, “basketball” if you will. We knew the rules and had the skills to win. We were cruising towards a wonderful retirement.

Then the world suddenly changed. As we started to shake off the shock and got our bearings, we realized we were not on a basketball court anymore but rather on a slab of ice.

The new game was called “hockey”. The playing field was suddenly different and we didn’t quite get the rules. Now we had to put on helmets and elbow pads and veer into the “corners” of the business world. We started to get banged up and bruised up and things got a whole lot tougher if not nearly impossible.

Many of us had our lines of credit cut or closed, the ones you need to survive the lean times. Plus the bank still wanted you to pay your bills.

Sales decreased by some 40 to 60 per cent. You did your best with retained earnings, savings and loans from family members to keep afloat. You cut expenses to the bone yet wondered if your taxes and costs were still going to rise.

Those of us in the last third of our lives realized we suddenly had to learn a new sport. In this game we found out we no longer had the right players, skills or resources to win. Now it was time to transform the team to compete in a new arena.

Battered and beaten we must now ask ourselves, so what are our options?

Do nothing and adopt a wait and see attitude. You could stay the course, do nothing new, and hope the game changes back to basketball. Risky and unlikely for the foreseeable future, but it could happen.

Re-tool and start over. Are you ready to learn “hockey” and get comfortable on a hockey rink? Can you learn the skills, source and/or retain talent for the new game? It may take up to 5 to 10 years to get back to where you were one to two years ago. If you are in your fifties or sixties is this how you want to spend the next five to ten years of your life? Perhaps this could make you feel young again.

Sell your company. Sell NOW? You could take the next 12 to 18 months to position your team on the new field, with the new rules and get maximum value for your company. Securing the right help could make it happen.

Hire a professional manager. You could still plan on playing golf, traveling and/or spending more time with your family. Putting the right coach and management team in place that knows how the new game is played, is a real possibility. Once you have the players onboard you might even consider an ESOP and create a long-term sale process where both you and your employees emerge victorious.

Consider these possibilities. Time, money, talent and the marketplace are your empowering variables. I believe the right answer is to pick one and stick to it.

John Daley is CEO of the Daley Group, LLC in Chesterfield, MO. The Daley Group, LLC is a highly valued resource focusing on sourcing capital, M&A and business growth for middle market companies. They study M&A and growth challenges and then identify, implement and measure solutions for their clients. For additional information call 636-527-7627 or email JRD@DaleyInstitute.com.

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Attributes of a Daley Institute Leader

2009-07-05T16:03:53Z

Attributes of a Successful Leader

You have integrity (with integrity you may proceed)
You are a master listener
You are decisive
You have a sense of urgency
You have the ability to enroll & empower (move, touch and inspire)
You have the ability to source and develop talent (put the right people in the organization in the right position and support them)
You have the ability to build, support and work in teams
You understand that you are not expected to have all the answers, but you have to know how to ask the right questions. (you know you don't know what you don't know and you understand that)
You are very comfortable working with people better than you, matter of fact you look for top talent and people you can develop into top talent
You know how and when to use short term and long term talent
Your presence in a room is very positive and constructive
You have the ability to enroll and inspire all stake holders with the vision and mission of your organization to the point that they take action
You know what information to chart and measure inside and outside your organization to lead them to a successful future

In short you know how to build and lead a "Culture of Performance". To get things done through others!

You, as a great leader, understand that the degree to which you are able to be all of the above determines the potential of your organization.

The Daley Institute Leadership Team

The Next Major Challenge

2009-06-19T22:33:26Z

The Next Major Challenge

John R. Daley

June 19, 2009

Seasoned companies either fail during a recession, ownership transition or during growth.

So we have survived the economic collapse. We are battered and torn, less talent, less capacity, reduced cash reserves and fewer customers buying less… but we are still upright! Just anemic. We get to choose how this continues.

The next potential cliff to beat will be the growth and hyper inflation phase. In order to compete we will have to reinvent ourselves to make up for lost sales due to customer value changes. Customer buying patterns are probably changed for the long term. Markets are consolidating and evolving. We have to reinvent our offering to earn business. That means market analysis is required which takes time, talent and money. Our cash reserves were used to make up for a loss of 40 to 60 percent of our normal profits so we have to rebuild our reserves. Inflation will mean that the reduced cash reserves you have will be worth less. Bank loans are few and far between even if you had predicable sales and assets in demand. Asset based loans are available at about 8 to 12 percent if you have unencumbered assets and predictable cash flow. Mezzanine loans are available at about 16 to 18%, Wow! They do have a place.

We are truly back to the basics of lending: Appropriate Collateral, Target Market, Competitive Advantage, Strong Business Plan and a Strong Management Team that can deliver despite the market challenges. Money is available for those prepared and that know where to look.
Some of us are about to run a marathon and we are anemic. We just have difficulty admitting we don’t know what we don’t know.

During this recovery the strong and financially well off companies will be sourcing contractor and employee top talent, preparing for growth. Some are planning to grow organically and some are shopping for deals on capacity, customer lists, mergers and acquisitions. The best are analyzing the markets to see were their capabilities will earn them profitable sales. Where can they pick off weaker players? Our freshman year of business school we were taught that was called asset and resource reallocation to more efficient uses. We will truly see who has what it takes and chooses success.

The bottom line is you will either be a more efficient and stronger competitor or have more efficient stronger competitors. You will either have cash, talent and capacity to compete or you will be running the marathon anemic. The next few months will truly tell who will survive and thrive!

My take away from all this besides all of the above, never forget the cycles, they are just like the seasons, plan for them!

When and How to Say "Enough!"

2009-05-03T17:51:30Z

There are two ways of going through life: Gather everything in sight, just in case you need it. Or, trust that you'll find exactly what you need, just in time. Guess which one lets you really stop and smell the roses?

Add page to favoritesBy Martha Beck from O, The Oprah Magazine, April 2009

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More on Oprah.com

Shortly after World War II, executives at Japan's Toyota Motor Company made a decision from which, I believe, we all can benefit. They decided to make cars the way they'd make, say, sushi. Unlike most manufacturers, which bought and stored massive stockpiles of supplies, Toyota began ordering just enough parts to keep their lines moving, just when those parts were needed. This made them spectacularly productive, and turned the phrase "just in time" into business legend.

I know of the Toyota case because in my former life as an academic, I taught international business management. My students and I had some rousing discussions about just-in-time (JIT) manufacturing, as well as its alternative, which is known as just-in-case (JIC) inventory. These students were the first people who hired me as a life coach (perhaps because I could never resist applying business theory to everyday life). When we discussed JIT versus JIC management as a lifestyle strategy, we concluded that Toyota's business innovation could positively impact all of our lives. If you feel overburdened, overstressed, and anxious, I'm betting the same is true for you.

Why Just-in-Case Is Just Crazy

Most people live with a just-in-case mind-set because for most of human history, it made sense. The primary fact of life for just-in-case processes is: "Everything good is scarce!" By contrast, just-in-time systems rely on the assumption "Everything good is readily available." Well, until quite recently, the former claim was true for most humans—it's still true for many. But most magazine readers like you live in settings where basic necessities, like food, clothing, and other humans, are plentiful.

Meet families who are going back to basics

Living in an abundant environment but operating on the assumption that good things are scarce leads to a host of dysfunctions that can be summed up in one word: excess. Most of us are living in some kind of excess; we work too much, eat too much, rack up debt buying too much stuff. Yet, driven by the unconscious, just-in-case assumption that "everything good is scarce," we just keep doing and accumulating more. We've all seen some of the unfortunate results, and I've found that most fall into the following four categories:

Starving off the Fat of the Land
For years I noticed that my clients who lived in a mind-set of scarcity had trouble controlling their weight, even though they dieted assiduously. I also read studies showing that poor women—particularly those who periodically starved themselves to feed their children—were particularly plagued by obesity. Researchers hypothesize that when the body knows it may be starved, whether by poverty or by dieting, it activates automatic just-in-case mechanisms that store fat on the body to get through the next "famine." Ironically, this biological just-in-case mechanism puts fat on precisely the people with the discipline to starve themselves.

Stuff Tsunamis
Just-in-case thinking triggers primal, unconscious impulses to hoard good stuff, fat supplies being just one example. Combine JIC attitudes with a superabundant culture, and things can go wildly off kilter. There have been several cases like the one in Shelton, Washington, where a woman recently suffocated under a pile of her own possessions. To recover her body, police reported having to "climb over [clutter] on their hands and knees. In some areas, their heads were touching the ceiling while they were standing on top of piles of debris."

Get rid of all your clutter for good!

Money Madness
My wealthiest clients have taught me that having lots of money doesn't quiet scarcity-based, JIC anxiety. This point was reinforced for me when I heard about the suicide of the German billionaire who lost hundreds of millions of dollars in the recent financial crisis. Now, this poor guy wasn't literally a poor guy. He still had a personal fortune. But to a just-in-case thinker who's used to billions, it wasn't enough to keep him from throwing himself in front of a train.

5 ways to cope with money stress

Love's Labor's Lost
Just-in-case thinking destroys relationships faster than—and sometimes with the assistance of—a speeding bullet. Along with the impulse to hoard objects, it also triggers excessive attempts to control our supply of love—that is, other people. So anxious lovers have their partners followed. Parents micromanage children. People-pleasers try to manipulate everyone into liking them. This behavior isn't love; it's a fear-based outcome of believing love is scarce. If you've ever been on the receiving end of such anxious machinations, you know they make you want to run, not bond.

How to save your relationship

Why Just-in-Time Just Makes Sense

As Toyota execs and my graduate students concluded so many years ago, hanging on to a just-in-case worldview in abundant environments is plain bad business. And as I've seen in countless coaching scenarios since, switching to a just-in-time mind-set ("Everything good is readily available") restores health and balance to our lives.

The great news is that just one mental shift—focusing on the abundance of your environment—switches your psychological settings so that your life automatically improves in many areas you may think are unrelated. This is essentially a leap from fear to faith; it's not religious faith but the simple belief that we'll probably be able to get what we need when we need it. When the issues above are considered through abundance-based, just-in-time thinking, it's a whole different ball game:

Food Fulfillment
I've never been a weight loss coach; my focus is on helping people go from fear and suffering to relaxation and happiness. So I was baffled when many of my clients told me, "I'm finally losing weight—and I'm not even trying." This intrigued me so much that I spent years researching and writing a book about it [The Four-Day Win]. After reading thousands of studies and interviewing dozens of experts, I'm convinced that the thought "Everything good is readily available" kicks the body out of its panicky, fat-storing mode and into a state that helps it shed excess fat.

Stuff Sufficiency
Dianne is 50-ish and newly divorced. Part of our coaching work helped her develop just-in-time confidence about money (which allowed her to leave the financial security of her emotionally dead marriage). During our final session, she said, "Something weird is happening. All of a sudden, I'm tidy. I've always been a stuff person, but now I don't add clutter. It's a wonderful, spacious feeling." Dianne didn't achieve this by forcing herself to clean up. She simply developed the confidence of a just-in-time manager, and her behavior changed almost on its own.

Mellow Money Management
"I got really panicky when the economy went south," says Jackie, one of my fellow coaches. "All my business dried up, and I was really scared. But I hate feeling scared, and I'm a coach, so one day I coached myself back to trusting life. I felt better immediately, but what's strange is that clients started coming out of the woodwork. I had to start a waiting list."

This, as any Toyota alum will tell you, is what happens to people who have enough confidence to run a just-in-time operation. I can't quite explain this; it often seems nothing short of miraculous. Perhaps this is why the authors of the Bible included the story of the wandering Israelites who were given manna from heaven, but only permitted to gather enough to supply their needs until the next manna-festation. Whether you take it literally or metaphorically, this tale was considered important enough to become holy writ. Why? I believe it's to counteract the just-in-case anxiety that makes billionaires keep hoarding more money. The Israelite story-keepers wanted to remind readers that, miraculous as it seems, just-in-time confidence keeps supply lines clear and prosperity flowing.

Lasting Love
I've done my share of just-in-case controlling when it comes to love (I'd like to apologize to anyone who once wandered into my danger zone). Happily, I've learned that setting people free, not trying to control them, ensures a lifetime supply of love.

Here's the closest thing I know to a genuine love spell: "I'll always love you, and I really don't care what you do." This is not a promise to stay in a relationship with someone whose behavior is destructive. It's a simple statement that you aren't dependent on the other person's choices. That means you can respond to someone as he or she really is, instead of trying to force a fallible person to be infallible. Knowing that love (like all good things) is readily available, we don't need to control any individual. And oh, how people love being loved without a care

When I meet someone who's a mess of excess, I just itch to coach them. I know that if they'd reroute a few simple brain habits, their lives would improve almost effortlessly. The transformation wouldn't take much work—no need to exhume childhood traumas or hook up an antidepressant IV. We'd just throw the neurological toggle switch that exchanges fight-or-flight mode (the sympathetic nervous system) for rest-and-relaxation mode (the parasympathetic nervous system). Most animals experience this switch in response to environmental conditions. We humans possess an unparalleled ability to create it with our thoughts.

It's almost too easy: Simply by taking your attention off thoughts of scarcity and persistently focusing on observations of abundance, you can replace the nervous, just-in-case mind-set that kept our ancient forebears alive but is killing many of us. The best way to effect this shift is to use these simple exercises:

1. List 10 times you thought that there wouldn't be enough of something and you survived.

2. List 10 areas where you have too much, not too little.

3. List 20—or 50, or 1,000—wonderful things that entered your life just at the right time, with no effort on your part. Start with the little things (oxygen, sunlight, a song on the radio). You'll soon think of bigger ones. Most of my clients realize that the most important things in their lives showed up this way.

I started doing excercise 3 several years ago, and I still haven't finished my list. Once you deliberately focus on abundance, you'll be overwhelmed by all the good things that show up like manna in the desert, without much effort on your part. If this seems too easy, you can go back to fearful, just-in-case thinking (you'll need a diet counselor, a housekeeper, and a financial planner, but that's okay—they can substitute for friends). But if, like me, my business school students, and my clients, you decide to try just-in-time thinking, you'll find yourself struggling less and accomplishing more in ways you'd never expect. You may kick yourself for not discovering this sooner. Relax. I promise, you're just in time.

Martha Beck is the author of six books. Her most recent is Steering by Starlight (Rodale).

By Martha Beck from O, The Oprah Magazine, April 2009 © 2009 Harpo Productions, Inc. All Rights Reserved.

Courage is not limited to the battlefield.

2009-05-03T15:13:01Z

"Courage is not limited to the battlefield. The real tests of courage are much quieter. They are the inner tests, like enduring pain when the room is empty or standing alone when you're misunderstood."

-- Charles Swindoll

How should we look at this business cycle?

2009-04-06T20:23:09Z

“When patterns are broken, new worlds emerge.”
Tuli Kupferberg, Author

Making the world a better place!

2009-01-23T23:15:27Z

"You make the world a better place

by making yourself a better person."

-- Scott Sorrell

]]> When things are tough we see our true character. So strive to do the right thing even if it seems counter intuitive during this challenging economy.

John R. Daley

"Confidence and enthusiasm

2009-01-23T22:55:32Z

"Confidence and enthusiasm are the greatest sales producers

in any kind of economy."

-- O. B. Smith

]]> In these challenging times the weak and less confident will be reallocated in our economy.

The businesses that see opportunity and strive to understand will design solutions. They will be the winners. The market and our society is reshuffling the deck and reenventing itself. Unfortunately this is alot like forest fires, when we try to avoid forest fires when they happen they are much worse.

John R. Daley

Recession 2009 Participation is Optional

2009-01-23T21:43:33Z

Some things I need to get off my chest
Over the past several months, having had the opportunity to work with many companies, leaders, as well as having received a great deal of emails, I've started to see an ugly pattern. So many who are scared, panicked even, are asking, "Why me, why now?" I hope it helps reinforce what you are already doing, gives you additional ideas of what you can and if I offend anyone, then maybe I was suppose to. I don't mean to be insensitive, but it is always to tell people what they need to hear versus what they want to hear.

8 rules to live by that will help you survive- even thrive- in 2009

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1. Swear off headline news
Sensationalism sells! Stop reading the front-page headlines, business sections, and stop listening to headline news. Don't be the one buying it and falling prey to it.

Great leaders emerge during difficult times and find opportunity. Their organizations make strides while everyone else is scrambling and doing self-destructive things, like cutting critical customer centric positions.

2. Stop feeling sorry for yourself
This is exactly what you wanted! You became a leader because you wanted to control your own destiny. You wanted to be "that" person, "that" leader, the one who makes things happen. When things got tough and difficult decisions had to be made, you wanted to be the one who made them, the one people came to. Well now it is time. Everyone is scared, your employees are scared and they are looking to you for leadership, direction, confidence, and a strong assurance that everything will be all right.

The moment you became a leader, you forfeited your right to panic in public. Get your head right. Do what you have to do and be a leader. A great leader! No leader ever achieved greatness only during easy times. The great leaders emerged during the most difficult times. People are counting on you, your employees, your customers, and your loved ones. You are the one that sold your vision to people, they bought that vision, gave up other opportunities because they believed in your vision. Do not turn your back on them now. Be the vision, sell the vision, and keep your word. Believe in yourself, your company and your vision.

Tough times DO NOT build character

Tough times REVEAL character
3. Be Inspired, Inspirable, Inspiring
What are you reading, watching and listening to? Read business journals that share the best practices of the companies who are not only surviving but also thriving. There are so many success stories, i.e. Smart Business Magazine. Fill your head with great ideas, inspiring thoughts and motivation. Crack out your old Zig Ziglar and Anthony Robbins tapes; listen to them on the way to work. Sign up and read weekly eServices (like this one) like Verne Harnish, who does so to continually set unprecedented growth in sales. Read warm and fuzzy books, Chicken Soup for the Soul, Life as a Daymaker, and life balance books. You will be amazed at how your attitude and perspective will be affected by what you feed your brain.

4. Lose the Losers
There are people that work for us, work with us, and that we socialize with, that are energy drainers. If they are not adding value, eliminate them from your life. Negativity kills passion. You can do more with less. Focus on the positive people who want to contribute and provide value. Reflect on the following two quotes:

You are the average of the five people with whom you spend the most time.

Surround yourself with great people and you will be guilty by association.

5. Stop Making Excuses
Every time I hear a great example of a business performing well during these times, I immediately hear someone say it is because of their "situation", i.e. it is the industry they are in, or the market, city, etc. Stop using and looking for crutches and learn from them! Success comes to the businesses that have focused on their employees, and built a strong internal culture that focuses on their customer.

6. Your Best IS NOT Good Enough
I'm not a fan of hearing people are doing their best. It may sound harsh, but that is another crutch. "I am doing my best - all I can do is my best." Bull! I don't want anyone's best. Your best is settling. It is accepting your current limitations. I want "THE best!" Your best is what you know, it is what you have been capable of, and it is where you are, up until now, at this point in your life or career. "THE best" is unknown. "THE best" is in your heart, not in your head. It is something that goes beyond conventional wisdom to figure out, it is something you may have sleepless nights figuring out or knots in your stomach. It is thinking, planning, strategizing, calling on every resource you know, having the nerve to call people others wouldn't even imagine, that you may have no right calling, and getting their help. It is training longer and harder than thought possible. It is running every possible scenario to exhaustion, and then running it again. "THE Best" is what we should be after, beyond our imagination and what we previously could conceive.

For over one hundred years, runners had tried unsuccessfully to break the four-minute mile barrier. It was deemed physically impossible until one person's unrelenting pursuit and determination found a way. What scientists stated was impossible due to the physiology of the human body then, after one person had done it, became the possible within the next years. Hundreds more were able to achieve the same goal.

7.    Go Unplugged
Under normal circumstances, most leaders, "type A" people, have issues with letting go and truly being present. Under stressful times like these, leaders tend to feel guilty about having any down time or quality time with family. This is a certain recipe for disaster and burnout. How much value will you be to your company, employees and family if that occurs? Keep your priorities in order! Business will always have its ups and downs, but your personal/family life should not reflect that. Commit to time with the people who matter most and turn off the blackberries, cell phones, and laptops for 48 hours and re-connect. Immediately your obstacles will not seem as insurmountable.

8.    Happiness is Selfless!
Leaders of businesses and leaders of families tend to be martyrs during difficult times carrying the weight of the world, making the necessary sacrifices and carrying the cross. But all that comes at a price: the price of emotional wear and tear, unintended stress with co-workers and loved ones. Do your thing, whatever it is. Your hobby, vice, or things that get you back into your groove will put the bounce back in your step. It might be running, working out, playing catch, playing cards, holding hands with your significant other, meeting your child for lunch at school, or connecting with your high school friends to remember what it is like to laugh so hard that your stomach muscles hurt the next morning. Right now, more than ever, we need to focus on our mental health, we need balance, and we need to be reminded of what it is we are all fighting for. It is our personal happiness and the happiness of the people we care about, our ability to positively affect people's lives. We cannot do that successfully if we are unhappy.

When leaders are happy, they are more likely to lead an extraordinary life, which results in countless others doing so as well.
John DiJulius [newsletter@johndijulius.com]

GIANT IMPACT - A Leader's Inner circle

2009-01-23T21:30:53Z

A Leader's Inner CircleBy Dr. John C. Maxwell

Months before President Obama took the oath of office he began assembling an inner circle of advisors. He and his transition team painstakingly pored over the qualifications of candidates to identify the strongest leaders for cabinet posts. In methodically vetting future leaders of his administration, President Obama demonstrated that he understands the law of the inner circle: A leader's potential is determined by those closest to him or her.

Past presidents have learned the hard way that failures of a leader's trusted advisors can bring disaster. During the Clinton administration, investigations into the conduct of five cabinet members eroded public perception of the President's judgment. The indictments and allegations gave ammunition to Clinton's foes and cast doubts on his character, especially after the Monica Lewinsky scandal came to light.

Likewise, President George W. Bush faced embarrassment when the man he appointed as head of FEMA, Michael D. Brown, failed to provide strong federal leadership in the aftermath Hurricane Katrina. Inexperienced in emergency management, Brown was overwhelmed by the crisis. During the height of the disaster, he fretted about finding a dogsitter and fussed about his attire. His unpreparedness and inaction left the Bush Administration vulnerable to scathing accusations of neglect and indifference.

Five questions to ask when forming your inner circle:

Do they display exemplary character in everything they do?

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Five questions to ask when forming your inner circle:

Do they display exemplary character in everything they do?

Deception eats away at a leadership team like cancer. Dishonesty on the part of one member of an inner circle can bring shame and disaster to all. Entire organizations have toppled from the misbehavior of one bad apple.

Do they bring complementary gifts to the table?

Imbalance within an inner circle can attune a leader's ear to only one side of an argument. When putting together an inner circle, prioritize diversity of personality and perspective. By doing so, you widen the range of your vision and the breadth of your influence.

Do they hold a strategic position and have influence within the organization?

Members of the inner circle must have the platform and influence to implement a leader's decisions. If they cannot be relied upon to execute a chosen strategy, then they shouldn't be entrusted with a spot on the leadership team. In addition, inviting uninfluential advisors into the inner circle disrupts the political balance of an organization. High performers suffer a motivational blow when they see a less deserving colleague granted special access to top leadership.

Do they add value to the organization and to the leader?

When considering someone for the inner circle, you should be able to articulate clearly the value they will bring. Ask yourself the following questions: What will they infuse into discussion? Where do they have expertise? What unique skills can they be counted on to bring to the table?

Do they positively impact other members of the inner circle?

If you've ever inhabited a house with a feuding husband and wife, then you can understand the need for leaders in close proximity to get along. Infighting saps energy and focus from a senior leader, forcing him or her to mediate conflicts with time that could be better spent elsewhere. Differences of opinion signal healthy debate, but personal animosities destroy a leadership team. Make sure members of your inner circle have the emotional intelligence to keep arguments from becoming too personal.

We've looked at the questions to consider when gathering a team of trusted advisors, I'd also like to offer thoughts on the two traps you can fall into when forming their inner circle.

Two common errors in constructing the inner circle:

Soliciting praise instead of candor.

Stacking an inner circle with flatters and "yes" men ranks among the lousiest decisions you can make as a leader. Doing so restricts your perspective, exposes you to blind spots, and leaves you on an island when do-or-die decisions must be made. When picking members of your inner circle, be sure they have the gumption to voice dissent. You'll rely on them to question your assumptions, to focus you on the mission, and to measure the integrity and worthiness of your ideas.

Driving away talent so that your power isn't threatened.

The wisdom of accumulating a talented inner circle may seem intuitive, but a rising star may threaten insecure leaders. Leaders should not be, and cannot be, the utmost authorities on all matters germane to the organization. Invariably, people have weaknesses. Wise leaders staff around their weaknesses, and welcome talent in areas where they lack strength.

Summary

Questions to Ask of Candidates for Your Inner Circle:

Do they display exemplary character in everything they do?
Do they bring complementary gifts to the table?
Do they hold a strategic position and have influence within the organization?
Do they add value to the organization and to the leader?
Do they positively impact other members of the inner circle?

Traps to Avoid when Staffing Your Inner Circle:

Soliciting praise instead of candor.
Driving away talent so that your power isn't threatened.

About

John C. Maxwell is an internationally recognized leadership expert, speaker, and author who has sold over 16 million books. His organizations have trained more than 2 million leaders worldwide. Dr. Maxwell is the founder of EQUIP and INJOY Stewardship Services. Every year he speaks to Fortune 500 companies, international government leaders, and audiences as diverse as the United States Military Academy at West Point, the National Football League, and ambassadors at the United Nations. A New York Times, Wall Street Journal, and Business Week best-selling author, Maxwell was named the World's Top Leadership Guru by Leadershipgurus.net. He was also one of only 25 authors and artists named to Amazon.com's 10th Anniversary Hall of Fame. Three of his books, The 21 Irrefutable Laws of Leadership, Developing the Leader Within You, and The 21 Indispensable Qualities of a Leader have each sold over a million copies.

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What will "we" do in 2009?

2009-01-08T22:33:53Z

Have you ever heard the phrase “taking poison hoping the other person dies”? It refers to getting angry at someone for something and that anger does more damage to your health than anything that happens to the other person.

We see this at the Daley Institute in a small scale compared to a whole country. For example, when we started with one of our clients we described the culture as “Toxic”. People at all levels of this company were posturing to take out their “adversaries”. Everyone was taking “poison” and bitter. We made some changes to silence the trouble makers (purveyors of poison) who had no interest in the success of the company. We improved systems and processes minimizing scrap and maximizing quality output. Four months later an employee’s wife came in and said her husband actually came home happy every night and she enjoyed their talks. What happened, she asked? We all worked together for the good of all. Management and workers began communicating and working through issues. The company is continually improving its health.

“If you don’t like something Change it!
If you can’t change it Change your attitude.” Maya Angelou

We usually retain most employees and managers by getting them to communicate, realistically understand each other’s role, risk and reward. We get buy in on vision and goals. We eliminate the peddlers of “poison”. Amazing things happen.

Who is “we” in the original question… Americans! Let’s think about that statement for a minute.

We have survived two world wars and an attack on us at home on 9/11. That’s just recent. We have survived weather challenges. We have survived economic challenging cycles. I would suggest to you that we are our biggest enemy.

Let me suggest that we not take “poison” or feed “poison” to the country by trying to take out the Democrats and liberals in the next elections. We can work with the Democrats like we thought they should have with President Bush and the Republican leaders in Congress. We can negotiate from our principles and values finding middle ground. Why find middle ground? Because about 40% of this country is liberal leaning and about 40% of our country is conservative leaning and about 20% are in the middle. We have a belief at the Daley Institute: “None of us are as good as all of us!” I would suggest that the USA should have the same belief.

So, I’m suggesting we show the rest of the country how to fight for the whole country. Let’s fight for appropriate taxes and laws to keep our economy in harmony. I’m assuming we all want jobs and money to pay for our bills. Let’s fight against high taxes, government bail outs and give away programs that will harm our kid’s future. If our economy is healthy and prosperous the government will have to tax less to pay for our governmental bills. But let’s respect our fellow Americans that lean towards the center and liberal perspective. We are all a valuable part of our society.

I believe the government is quickly learning that if the American public sits on their hands in fear all the actions of the government is useless. The best the Democrats can do is blame the Republicans and vice versa. So “we the people” need to rebuild our country and our economy and stop looking to Washington.

Banks are not lending so businesses are concerned about liquidity and consumers are worried about the businesses.
Consumers are not spending because they have no confidence in current and future cash flow.

Will they be able to pay their bills next month?
People are being laid off and their retirement investments are seriously diminished. This is more of a worry than the value of their house.
People being laid off feeds the fear of the consumer which makes them want to spend less.

Businesses are concerned about the ability to fund short term cash flow and roll over long term debt. So they are letting employees go to mitigate the risk.
Sales for businesses are dropping because of consumer spending so they are laying off employees.

Does anyone else see a vicious cycle here? How will the government assure businesses of liquidity availability. How will governent assure consumers of long term jobs? It appears to me the solution is in getting the businesses funded and healthy so employees (consumers) feel comfortable enough to start consuming so the businesses can stay healthy. We need to communicate without the hate and anger and with all of our best interest in mind. We need to understand our roles, risks and rewards we chose and contribute to the best of each of our abilities.

“Ask not what your country can do for you; ask what you can do for your country”.
John F Kennedy, President, USA

I believe it was Warren Buffet who said “There are two kinds of welfare, one comes from the government and one comes from the trust department of a bank, they are both destructive!”

So I humbly suggest that we do not take “poison” or give “poison” hoping are opponents die. Continue to turn off the talking heads and hateful biased media and entertainment industry regardless of your political persuasion. If you think it’s biased turn it off! Take control of your mind and attitude.

I suggest we put our actions where our words are and have an orderly and respectful transition of power as we profess to the world. Let’s welcome President-elect Obama and his administration and join me in saying a prayer that he leads with all our best interest in mind helping us improve the future soon for our families, fellow Americans and world. Most importantly, let’s do our part to start the economic recovery now. We can chose to continue our toxic culture or be like our client that built a culture and system that makes all stake holders proud; I voted we rebuild our great country and world together! We can lead the world out of this challenging time now!

You can say this is “pie in the sky” but the alternative is ugly and will impact our loved ones. We do it with clients and they are always amazed at the transformation of the culture, productivity, creativity and quality.

Good luck to all of us, we are building our future!

John R. Daley, CEO
The Daley Institute

What can can we do to make 2009 better?

2009-01-07T21:00:31Z

ONE. Give people more than they expect and do it cheerfully.

TWO. Marry a man/woman you love to talk to. As you get older, their conversational skills will be as important as any other.

THREE. Don't believe all you hear, spend all you have or sleep all you want.

FOUR. When you say, "I love you," mean it.

FIVE. When you say, "I'm sorry," look the person in the eye.

SIX. Be engaged at least six months before you get married.

SEVEN. Believe in love at first sight.

EIGHT. Never laugh at anyone's dream. People who don't have dreams don't have much.

NINE. Love deeply and passionately. You might get hurt but it's the only way to live life completely.

TEN. In disagreements, fight fairly. No name calling.

ELEVEN. Don't judge people by their relatives.

TWELVE. Talk slowly but think quickly.

THIRTEEN. When someone asks you a question you don't want to answer, smile and ask, "Why do you want to know?"

FOURTEEN. Remember that great love and great achievements involve great risk.

FIFTEEN. Say "bless you" when you hear someone sneeze.

SIXTEEN. When you lose, don't lose the lesson.

SEVENTEEN. Remember the three R's: Respect for self; Respect for others; and responsibility for all your actions.

EIGHTEEN. Don't let a little dispute injure a great friendship.

NINETEEN. When you realize you've made a mistake, take immediate steps to correct it.

TWENTY. Smile when picking up the phone. The caller will hear it in your voice.

TWENTY-ONE. Spend some time alone.

A true friend is someone who reaches for your hand and touches your heart.
Do not keep this message

Don't try and predict the bottom focus on recovery

2008-12-05T21:51:44Z

“Is this the bottom?” is the wrong question!

John R. Daley, MIB

Business leaders should not be trying to identify the bottom. NOW is the time to prepare for recovery! Allow me to build my case.

Running a business is like preparing a team for the Olympics. We have just finished our last Olympics and the next one is coming. We are spent in some cases, some are looking back at what could have been and some are worried about how they are going to recover by the next Olympics.

These last few months have been life changing for most of us. Consequently your stake holders (customers, employees, vendors and investors) values, needs and desires have changed. Is your company ready to serve the new needs, desires and values of all your stake holders? Do you know what those new needs, desires and values even are? Keep in mind; I’m not sure they have stopped evolving.

There are two general groups of companies. One group is cutting people, costs including sales expenses and hoping to survive the storm. The owners are stressed and holed up in their office. The second group is repositioning and analyzing how their market is evolving. They are looking for new markets to consider. These future winners are out talking to customers, keeping themselves and their team up beat, optimistic and focused on the recovery that is coming. They are taking talent and market share from the first group who probably won’t know till it’s too late. It’s not too late to join the latter group.

We are looking for a recovery in about 9 to 18 months. There is a significant amount of liquidity on the sidelines right now both, with investors and in companies. When people decide that the recovery is real, a significant percentage of that sidelined liquidity will surge back into the market as investments and growth projects. If you wait to start preparing for the recovery until the recovery is in place, which would be like deciding to prepare for the Olympics on opening day. You will get run over.

Next year’s success stories are repositioning their team for a new season now. They know this repositioning will take time and now is the perfect time to start. Teams preparing for the Olympics spend two years or more deciding on the right place to compete, team make up, sourcing the talent and then training.

Analyze your market now. Look at alternative markets that your skills and capacity might serve profitably. Do this by using the “walking around” method. Call and visit current and potential customers. Ask them how their goals and challenges are changing. Be upbeat and a great listener. This will provide you the information you need to reevaluate your offerings and how they will be valued. Do you need to adjust your resources to provide the new solutions the markets are looking for?

There is talent available. Top talent is worried that they will be unemployed soon if the company can’t hold together. Bad managers are losing or discarding good people. Weak companies are discarding good people. Build your best team now!

There is equipment available. Some companies are not going to make it. That’s called reallocation of resources, so they are more efficiently used for higher value. This has kept our economy one of the best in the world. There is equipment available and motivated sellers.

We believe we have 9 to 18 months before we have a full blown recovery. That gives you time to reposition your company and be in competition form about the right time if you start Now!

The Daley Institute and our co sponsors are hosting Business Growth Round Tables for the next 9 to 18 months. The complete focus of the Round Tables will be identifying challenges of business leader attendees and working with each other to identify best practices. Sponsors have all agreed there will be no sales pitches or presentations, these round tables are totally about brainstorming to help our business community be the best prepared for the next growth cycle. There is no cost for these events at this time. Our first Business Round Table was December 4^th sponsored by Southwest Bank. We had 15 business owners participate and they gave it rave review. These business owners shared great best practices. Our next Business Round Table is December 17^th, 2008 and our cosponsor is National City Bank. We have a few spots left. We will announce the January Business Round Tables soon.

If you would like to cosponsor a roundtable for your community and or participate please email Sbodine@daleyinstitute.com or call 636-527-7627 and ask for Shawn Bodine.

Surviving and Thriving during Market Cycles

2008-04-05T21:37:09Z

The risk for small business is that when the press says the market is getting weaker, we assume that that means our market is getting weaker.

That may or may not be the case.

The risk to small business is that its management becomes so stressed that they become myopic in their view. Cabinetmakers focus on making cabinets as opposed to managing their businesses. Accountants focus on the books and engineers go into the shop to tinker.

We all tend to do what brings us pleasure and comfort when we are stressed. This is not a response characteristic of upper management. We all do it. So what should you do?

Just as the economy cycles, the coaches at the Daley Institute for Business Transformation recommend a three-phase process that is repeated every three years.

The most successful businesses use such a three-year cycle to re-evaluate their business and its markets, and to set a direction for the upcoming years.

They seek to understand every aspect of their business and how it is doing within the context of their target market. (This is the era of information overload. Yet most businesses still do not collect sufficient information and/or analyze it routinely.)

]]> Phase 1 – Diagnostic and Strategic Plan

The first phase of the cycle is to bring together a team of professionals that can evaluate the company with a 360-degree view.

This evaluation includes interviewing everyone possible inside your company, suppliers, customers, potential customers, lost customers and competitors.

It seeks to answer questions such as ”How lean is your company operating?” or “How efficient is your company operating?”

Once you understand how your company is doing within the context of your market, a clear picture emerges that allows you to know the precise phase of an economic cycle in which your company is operating. You also learn the degree to which your business is experiencing the economic slowdown or growth.
The next step is to understand how your market (customers) will evolve as the market cycles play out. Is your product or service offering going to be priced appropriately? Will the attributes of your product or service be valued the same?

Market slowdowns and growth cycles can be life-changing events. Technology, competition, customer needs, and resources evolve quickly.

Consider the interest in solar, wind, and other energy options and how they are being valued today compared to as little as two years ago. Look at how we listen to music compared to two years ago.

Once you understand your organization’s capabilities and how they relate to the changing needs and expectations of the market, you have the basis for developing a strategic plan of how to take advantage of the opportunities as they pertain to current and future markets within the scope of your organization’s capabilities.

Phase 2 – Building the foundation for the new goals

If you are attempting to build a 10-story building, you need a 10-story foundation (engineering wise).

The same rule applies for any business that plans reproducible, balanced growth. That 10-story foundation needs to be in place before you start building that business.

That foundation includes financing for the increased accounts payables and receivables. It could mean increased inventory and any additional staffing or equipment as well as appropriate resources for the projected production capacity required for the realization of the strategic plan. All of this –– and more –– need to be in place before you start growing sales.

I once explained to a pharmaceutical company that they needed a third shift for a drug that was being relaunched. They told us they would open the third shift when the sales were strong enough. Sales increased. The third shift was implemented. But before it produced enough product, the retail and hospital pharmacies ran out.

The pipeline was empty and patients were being switched to another drug. Doctors made it clear that would not be tolerated in the future.

This is one of the reasons most companies fail during growth. The answer is to make sure a strong foundation (in the form of infrastructure and capabilities) is in place before starting to grow sales.

Phase 3 – Execution of the strategic plan

This is probably the most difficult of the three phases.

This phase requires changing behavior and pushing people out of their comfort zones.

No one writes a business plan expecting to fail. But most fail due to poor or no execution.

Make sure that your team has someone to watch from outside –– to make sure your team does not slip back into old habits or comfort zones.

At the same time, make sure there are appropriate metrics in place to help you stay on track.

We use custom dashboards as a means for providing up-to-the-minute feedback as to the condition of the business. The dashboards, with built-in metrics, take information from a variety of people and departments and reports to top management, department heads, and the outside coaching team.

The third year, the process begins again with Phase 1.

Change is a fact of life. It is also a fact of corporate life. Every company should create a three-year cycle for itself –– evaluating their organization and how relevant they are to their market today and in years to come.

By doing so, you are able to differentiate between the noises emanating from the press and the reality of your own organization, and to what it is telling them about the condition of their foundation, where they are today, and where they can be as the economy cycles.

John Daley is CEO of the Daley Institute for Business Transformation with offices in St. Louis and New York. Gil Effron is the managing director of the New York office. Among other strategies to build stronger foundations and bring about significant, balanced growth, the institute utilizes a team coaching approach –– many coaches coming from many business disciplines that work as a team.

The coaches may be reached at askthecoach@daleygroup.org.

Considering a Consultant or Business Coach

2007-12-31T19:20:31Z

What should you consider before retaining a business coach?
www.coachdaley.com

First, how serious are you about changing your comfort zone? It took you a long time filled with trial, error and success to get to this point. You're successful right now at some level. Do you have it in you to get to the next level?

If you are serious about growing your business you have two choices:
·          Changing you into what is necessary for the leadership of the next level of business
·          Finding a professional manager.
The hardest thing for a coach is to help you be comfortable changing your behavior. Many coaching relationships fail due to the client getting uncomfortable being outside of their comfort zone. They may not be able to verbalize it but they will start to fight back and even end the relationship. Can you see why I ask how serious you are about change? I have seen owners tank their company after someone else grew sales and then left. In most cases it results in failure not just going back to the ole company.
·          What got you here will not get you there
·          You don’t know what you don’t know
·          You and your company are either growing or dying, there is no in between

Find a coach that you are ...

]]> Find a coach that you are comfortable with, has been to the level of business you would like to get to and has the band width to get the job done. Remember not to confuse business coaching with product development or manufacturing. 70 to 80% of all business problems are common. 20% to 30% are specific to your product or service. 80% of the time business owners hire consultants for 20% of their problem. That's their comfort zone. Most consultants and some coaches will give a report and wish you well. Most reports are on shelves with no execution.

You need a CEO Coach with experience. You need a CFO Coach with experience. You need a Sales and Marketing Coach with experience. You need a Manufacturing Coach if you manufacturer. You need an HR Coach and possibly an Operations Coach! And on top of that they have to be your mentor and help you with the personal concerns.

Your coach’s job is to make YOU comfortable with the knowledge, skills and experience necessary to run your business at the next level, either running your business or managing a professional management team.

Consider if you don't change then your business will not change unless you take yourself out of the day to day operations and put in a professional manager. Not an entrepreneur but a professional manager. You become the investor with a professional management team.

Can one person do all the above? Many will say they can and many will try on your nickel. If you ask a CEO from a major company they wouldn't even consider the option.

Jack of all trades, master of none.

Find a team of coaches that you trust to help you build your business to the level you envision. When you start getting uncomfortable and you will, you will trust them. Trust and confidence in the coach’s knowledge, skills and experience seem to be the key.

You will reach a new comfort zone with a more successful, valuable company.
The Daley Group, LLC is one of the few business coaching teams set up exactly that way. We are senior advisor/coaches that work as a team.

The Daley Institute Blog

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Attributes of a Daley Institute Leader

The Next Major Challenge

When and How to Say "Enough!"

More on Oprah.com

Courage is not limited to the battlefield.

How should we look at this business cycle?

“When patterns are broken, new worlds emerge.”Tuli Kupferberg, Author

Making the world a better place!

"Confidence and enthusiasm

Recession 2009 Participation is Optional

1. Swear off headline newsSensationalism sells! Stop reading the front-page headlines, business sections, and stop listening to headline news. Don't be the one buying it and falling prey to it.

Great leaders emerge during difficult times and find opportunity. Their organizations make strides while everyone else is scrambling and doing self-destructive things, like cutting critical customer centric positions.

You are the average of the five people with whom you spend the most time. Surround yourself with great people and you will be guilty by association.

GIANT IMPACT - A Leader's Inner circle

A Leader's Inner CircleBy Dr. John C. Maxwell

Five questions to ask when forming your inner circle:

Five questions to ask when forming your inner circle:

Two common errors in constructing the inner circle:

Summary

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Recent Articles

What will "we" do in 2009?

What can can we do to make 2009 better?

Don't try and predict the bottom focus on recovery

Surviving and Thriving during Market Cycles

Phase 2 – Building the foundation for the new goals

Phase 3 – Execution of the strategic plan

Considering a Consultant or Business Coach

“When patterns are broken, new worlds emerge.”
Tuli Kupferberg, Author

1. Swear off headline news
Sensationalism sells! Stop reading the front-page headlines, business sections, and stop listening to headline news. Don't be the one buying it and falling prey to it.

You are the average of the five people with whom you spend the most time.

Surround yourself with great people and you will be guilty by association.