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August 13, 2009

Where Do We Go From Here?

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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July 05, 2009

Attributes of a Daley Institute Leader

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

 


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June 19, 2009

The Next Major Challenge

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!

 


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January 23, 2009

Recession 2009 Participation is Optional

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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GIANT IMPACT - A Leader's Inner circle

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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December 05, 2008

Don't try and predict the bottom focus on recovery

“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 4th 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 17th, 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.


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April 05, 2008

Surviving and Thriving during Market Cycles

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.) 

Continue reading "Surviving and Thriving during Market Cycles" »


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June 26, 2007

My Perspective on the Goal of Life on this Earth

My Perspective on the Goal of Life on this Earth
Coach Daley

 

Life is like a big gym.  When you're young you require specific direction, control and light weights.  As you grow older the weights (challenges) get heavy and hopefully you get stronger and wiser. The control slowly diminishes.  During your life in this gym (earth) you will have heavenly and earthly spotters and coaches.  The role of the coach/spotter will evolve from dependence and concern to independence and pride.  The coach/spotters only succeed when they provide healthy independence.  Tough goal, dependence and control are much easier to handle but not the goal we've been given.  It takes a strong confident coach to watch us fail and then coach us to success.

 

Challenges are not the only experience in our gym; we also experience love and friendship. 
 
As we grow older, stronger and wiser our role evolves.  Most of us become coaches and spotters. The titles may vary such as mother, father, teacher or leader but still coaches.  That is an honor and privilege granted us and goes hand in hand with love and friendship.  Obviously in our evolved role we have the challenge of helping others become stronger and wiser. The students fear and apprehension will be replaced with the coaches calm confidence and evolve into the students calm confidence.  This only takes place when mutual caring and respect has been earned.  That may be the toughest challenge of all.  It’s always easier to do it yourself or tell someone else exactly what to do but that is not the role of a coach.  A coach’s role and value is coaching someone else to do it themselves because the student believes it is the right thing to do.  Now that is the ultimate challenge!
 
When you look at millionaires and billionaires they don't have fewer challenges, they have more strength and skills to handle heavier challenges.  They have more people to spot and coach because of the caring and respect they have earned.  I believe the reward is larger because the number of people being coached and spotted is larger.   Most lottery winners end up broke.  They had millions but usually lose all of it.  Most wealthy people have or are providing a significant value to society.  At least the ones that stay wealthy. 

 

A successful well rounded coach will have a strong healthy family, strong friendships and great relationships with their coworkers.  They have skill and heart to earn love and respect.  I can’t think of anything more valuable.
 
So don't ask for an easier life, ask for more strength and skill to handle larger challenges.  Ask for the heart and skill to help more people succeed in this gym. 

 

This is the perspective I've been given for a successful life here on earth.  I have been blessed with many great coaches and I greatly appreciate, love and respect each and every one of them.    I am still striving for success.
 

Coach Daley 


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April 20, 2007

Conquest of fear and the habit of courage

By Brian Tracy

 

Perhaps the greatest challenge that you will ever face in life is the conquest of fear and the development of the habit of courage. Winston Churchill once wrote, "Courage is rightly considered the foremost of the virtues, for upon it, all others depend." Fear is, and always has been, the greatest enemy of mankind. When Franklin D. Roosevelt said, "The only thing we have to fear is fear itself," he was saying that the emotion of fear, rather than the reality of what we fear, is what causes us anxiety, stress, and unhappiness. When you develop the habit of courage and unshakable self-confidence, a whole new world of possibilities opens up for you. Just think—what would you dare to dream, or be, or do, if you weren't afraid of anything in the whole world?

Fortunately, the habit of courage can be learned just as any other success skill is learned. To do so, we need to go to work systematically to diminish and eradicate our fears, while simultaneously building up the kind of courage that will enable us to deal with the inevitable ups and downs of life unafraid.

Syndicated columnist Ann Landers wrote these words: "If I were asked to give what I consider the single most useful bit of advice for all humanity, it would be this: Expect trouble as an inevitable part of life, and when it comes, hold your head high. Look it squarely in the eye, and say, 'I will be bigger than you. You cannot defeat me.'" This is the kind of attitude that leads to victory.

The starting point in overcoming fear and developing courage is, first of all, to look at the factors that predispose us toward being afraid.

As we know, the root source of fear is childhood conditioning that caused us to experience two types of fear: the fear of failure, which causes us to think, "I can't, I can't, I can't"; and the fear of rejection, which causes us to think, "I have to, I have to, I have to."

Based on these fears, we become preoccupied with the idea of losing our money, or our time, or our emotional investment in a relationship. We become hypersensitive to the opinions and possible criticisms of others, sometimes to the point where we are afraid to do anything that anyone else might disapprove of. Our fears tend to paralyze us, holding us back from taking constructive action in the direction of our dreams and goals. We hesitate, we become indecisive and we procrastinate; we make excuses and find reasons not to move ahead. And finally, we feel frustrated, caught in the double bind of, "I have to, but I can't," or, "I can't, but I have to."

Fear is also caused by ignorance. When we have limited information, we tend to be tense and insecure about the outcome of our actions. Ignorance causes us to fear change, to fear the unknown and to avoid trying anything new or different. But the reverse is also true. The very act of gathering more and more information about a particular subject causes us to have more courage and confidence in that area. There are parts of your life where you have no fear at all because you feel knowledgeable and completely capable of handling whatever happens.

Another factor that causes fears is illness or fatigue. When we are tired or unwell, or when we are not physically fit, we are more predisposed to fear and doubt than when we are feeling healthy and happy and terrific about ourselves.

Once we've recognized the factors that can cause fear, the second step in overcoming fear is to sit down and take the time to objectively identify, define and analyze your own personal fears. At the top of a clean sheet of paper, write the question, "What am I afraid of?"

Now, before you begin, I need to make an important point: All intelligent people are afraid of something. It is normal and natural to be concerned about your physical, emotional and financial survival. The courageous person is not a person who is unafraid. As Mark Twain said, "Courage is resistance to fear, mastery of fear¾not absence of fear."

It is not whether or not you are afraid. We are all afraid. The question is, how do you deal with the fear? The courageous person is simply one who goes forward in spite of the fear. And here's something else I've learned: when you confront your fears and move toward what you are afraid of, your fears diminish and your self-esteem and self-confidence increase.

However, when you avoid the thing you fear, your fears grow until they begin to control every aspect of your life. And as your fears increase, your self-esteem, your self-confidence and your self-respect diminish accordingly.

Begin filling out your list of fears by writing down everything, major and minor, over which you experience any anxiety. The most common fears, of course, are the fear of failure and the fear of rejection.

Some people, compelled by the fear of failure, invest an enormous amount of energy justifying or covering up their mistakes. And some people, compelled by the fear of rejection, are so obsessed with how they appear to others that they seem to have no ability to take independent action at all. Until they are absolutely certain that someone else will approve, they refrain from doing anything. Once you have made a list of every fear that you think may be affecting your thinking and your behavior, organize the items in order of importance. Which fear do you feel has the greatest impact on your thinking, or holds you back more than any other? Which fear would be number two? What would be your third fear? And so on. With regard to your predominant fear, write the answers to these three questions:

1. How does this fear hold me back in life? 2. How does this fear help me, or how has it helped me in the past? 3. What would be my pay-off for eliminating this fear?

Some years ago, I went through this exercise and concluded that my biggest fear was the fear of poverty. I was afraid of not having enough money, being broke, perhaps even being destitute. I knew that this fear had originated during my childhood because my parents, who grew up during the Depression, had continually worried about money. My fear was reinforced when I was broke at various times during my 20s. I could objectively assess the origins of this fear, but it still had a strong hold on me. Even when I had sufficient money for all my needs, this fear was always there.

My answer to the question, "How does this fear hold me back?" was that it caused me to be anxious about taking risks with money. It caused me to play it safe with regard to employment. And it caused me to choose security over opportunity.

My answer to the second question, "How does this fear help me?" was that, in order to escape the fear of poverty, I had a tendency to work much longer and harder. I was more ambitious and determined. I took much more time to inform myself on the various ways that money could be invested. The fear of poverty was, in effect, driving me toward financial independence.

When I answered the third question, "What would be my pay-off for overcoming this fear?" I immediately saw that I would be willing to take more risks, I would be more aggressive in pursuing my financial goals, I could and would start my own business, and I would not be so tense and concerned about spending too much or having too little. I would no longer be so concerned about the price of everything. By objectively analyzing my biggest fear in this way, I was able to begin the process of eliminating it.

You can begin the process of developing courage and eliminating fear by engaging in actions consistent with the behaviors of courage and self-confidence. Anything that you practice over and over eventually becomes a new habit. So let's focus on some of the areas where you can practice to develop the habit of courage.

The first and perhaps most important kind of courage is the courage to begin, to launch, to step out in faith. This is the courage to try something new or different, to move out of your comfort zone, with no guarantee of success. John Ronstadt, a professor at Babson College who taught entrepreneurship for 12 years, conducted a study of those who took his class and later became successful. He could only find one quality that they had in common: their willingness to actually start their own business in the marketplace. He calls this the "Corridor Principle." He said that as these individuals moved forward, as though proceeding down a corridor, doors opened to them that they would not have seen if they had not been in forward motion. It turned out that the graduates of his entrepreneurship course who had done nothing with what they had learned were still waiting for things to be just right before they began. They were unwilling to launch themselves down the corridor of uncertainty until they could somehow be assured that they would be successful¾something which never happened.

The future belongs to the risk takers, not the security seekers. Life is perverse in the sense that, the more you seek security, the less of it you have. But the more you seek opportunity, the more likely it is that you will achieve the security that you desire. One way to get the courage to begin, from which everything else flows, is to plan and prepare thoroughly in advance. Set clear goals and objectives, then gather information. Read and research in your chosen field. Write out detailed plans of action, and then take the first step.

The second kind of courage is the courage to endure, to persist, to stay at it once you have begun. Persistence is a form of courageous patience, and it is one of the rarest types of courage. Courageous patience is having the ability to stand firm after you have taken action and before you get any feedback or results from your actions. When you plan your work and work your plan through patient persistence, even in the face of disappointment and unexpected setbacks, you will build and develop the quality of courage within you.

Whenever you feel fear or anxiety, and you need to bolster your courage to endure, switch your attention to your goals. Create a mental picture of the person that you would like to be, performing the way you would like to perform. There is nothing wrong with thoughts of fear as long as you temper them with thoughts of courage and self-reliance. Whatever you dwell upon, grows . . . so be careful.

The last type of courage is the courage to conquer worry—a form of negative goal-setting. It is dwelling upon, talking about, and vividly imagining exactly what you don't want to happen. If you worry long enough and hard enough about something, you are going to attract it into your life. The great tragedy is that even if the situation you are worrying about does not materialize, your health and your emotions will suffer just the same. And the fact is that most of things that people worry about never happen.

The only real antitode to worry is purposeful action toward a predetermined goal or solution. Since the conscious mind can only hold one thought at a time, when you get busy doing something to resolve your problem, you will not have the time or the mental capacity to worry. And before you know it, your worrysome situation will have been resolved.

The mastery of fear and the development of courage are essential prerequisites for a happy, successful life. With a commitment to acquire the habit of courage, you will eventually reach the point where your fears no longer play a major role in your decision-making. You will set big, challenging, exciting goals, and you will have the confidence of knowing that you can attain them. You will be able to face every situation with calmness and self-assurance. And the key is courage.


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March 20, 2007

Business Continuity Planning

How do you manage risk and what does that have to do with continuity planning?
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March 19, 2007

Business Continuity Plan

Do you believe in Business Contintuity Plans?  Have you implemented a BCP?
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